Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document and Entity Information | |
Entity Registrant Name | Cobalt International Energy, Inc. |
Entity Central Index Key | 1471261 |
Document Type | 10-Q |
Document Period End Date | 31-Mar-15 |
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 | 414,414,019 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $354,803 | $258,721 |
Joint interest and other receivables | 29,531 | 59,974 |
Prepaid expenses and other current assets | 30,367 | 14,497 |
Inventory | 83,518 | 94,674 |
Short-term restricted funds | 22,538 | 45,062 |
Short-term investments | 1,525,072 | 1,530,206 |
Total current assets | 2,045,829 | 2,003,134 |
Property, plant, and equipment: | ||
Oil and gas properties, successful efforts method of accounting, net of accumulated depletion of $-0- | 2,085,074 | 1,920,979 |
Other property and equipment, net of accumulated depreciation and amortization of $10,319 and $8,977, as of March 31, 2015 and December 31, 2014, respectively | 10,103 | 11,382 |
Total property, plant, and equipment, net | 2,095,177 | 1,932,361 |
Long-term restricted funds | 82,419 | 105,051 |
Long-term investments | 65,624 | 326,047 |
Deferred income taxes | 30,995 | 30,334 |
Other assets | 63,690 | 53,936 |
Total assets | 4,383,734 | 4,450,863 |
Current liabilities: | ||
Trade and other accounts payable | 36,660 | 8,010 |
Accrued liabilities | 216,436 | 214,972 |
Short-term contractual obligations | 107,994 | 50,285 |
Deferred income taxes | 30,995 | 30,334 |
Total current liabilities | 392,085 | 303,601 |
Long-term debt | 1,949,293 | 1,928,528 |
Long-term contractual obligations | 1,381 | 101,945 |
Other long-term liabilities | 2,483 | 2,523 |
Total long-term liabilities | 1,953,157 | 2,032,996 |
Stockholders' Equity: | ||
Common stock, $0.01 par value per share; 2,000,000,000 shares authorized 408,508,529 and 408,505,079 issued and outstanding as of March 31, 2015 and December 31, 2014, respectively | 4,085 | 4,085 |
Additional paid-in capital | 4,143,646 | 4,137,803 |
Accumulated deficit during the development stage | -2,109,239 | -2,027,622 |
Total stockholders' equity | 2,038,492 | 2,114,266 |
Total liabilities and stockholders' equity | $4,383,734 | $4,450,863 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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) | $10,319 | $8,977 |
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 | 408,508,529 | 408,505,079 |
Common stock, shares outstanding | 408,508,529 | 408,505,079 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating costs and expenses: | ||
Seismic and exploration | $17,769 | $8,976 |
Dry hole expense and impairment | 19,897 | 13,041 |
General and administrative | 24,249 | 24,169 |
Depreciation and amortization | 1,342 | 1,107 |
Total operating costs and expenses | 63,257 | 47,293 |
Operating income (loss) | -63,257 | -47,293 |
Other income (expense): | ||
Interest income | 1,660 | 945 |
Interest expense | -20,020 | -10,567 |
Total other income (expense) | -18,360 | -9,622 |
Net income (loss) before income tax | -81,617 | -56,915 |
Net income (loss) | ($81,617) | ($56,915) |
Basic and diluted income (loss) per share (in dollars per share) | ($0.20) | ($0.14) |
Basic and diluted weighted average common shares outstanding (in shares) | 408,508,154 | 407,001,208 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Changes in Stockholders' Equity (USD $) | Common Stock | Additional Paid-in Capital | Accumulated Deficit During Development Stage | Total |
In Thousands | ||||
Balance at Dec. 31, 2014 | $4,085 | $4,137,803 | ($2,027,622) | $2,114,266 |
Equity based compensation | 5,843 | 5,843 | ||
Net income (loss) | -81,617 | -81,617 | ||
Balance at Mar. 31, 2015 | $4,085 | $4,143,646 | ($2,109,239) | $2,038,492 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows provided from operating activities | ||
Net income (loss) | ($81,617) | ($56,915) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 1,342 | 1,107 |
Dry hole expense and impairment of unproved properties | 19,897 | 13,041 |
Equity based compensation | 5,843 | 8,257 |
Amortization of premium (accretion of discount) on investments | 4,800 | 4,230 |
Amortization of debt discount | 19,868 | 12,352 |
Changes in operating assets and liabilities: | ||
Joint interest and other receivables | 30,443 | 46,223 |
Inventory | 11,035 | -4,487 |
Prepaid expense and other current assets | -15,870 | 27,348 |
Deferred charges and other | -9,518 | 5,094 |
Trade and other accounts payable | 18,744 | -116,091 |
Accrued liabilities and other | -22,147 | -25,832 |
Net cash provided by (used in) operating activities | -17,180 | -85,673 |
Cash flows from investing activities | ||
Capital expenditures for oil and gas properties | -42,855 | -42,855 |
Capital expenditures for other property and equipment | -63 | -291 |
Exploration wells drilling in process | -149,733 | -85,307 |
Change in restricted funds | -855 | 43,659 |
Proceeds from maturity of investment securities | 372,350 | 519,205 |
Purchase of investment securities | -65,582 | -388,797 |
Net cash provided by (used in) investing activities | 113,262 | 45,614 |
Cash flows from financing activities | ||
Proceeds from stock option exercises | 33 | |
Payments for common stock withheld for taxes on equity based compensation | -630 | |
Net cash provided by (used in) financing activities | -597 | |
Net increase (decrease) in cash and cash equivalents | 96,082 | -40,656 |
Cash and cash equivalents, beginning of period | 258,721 | 192,460 |
Cash and cash equivalents, end of period | 354,803 | 151,804 |
Non-Cash Disclosures | ||
Changes in accrued capital expenditures | -8,716 | 29,959 |
Transfer of investment securities to and from restricted funds | $46,049 | $42,672 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | |
1. Summary of Significant Accounting Policies | |
General | |
Cobalt International Energy, Inc. (the "Company") is an independent exploration and production company with operations in the deepwater U.S. Gulf of Mexico and offshore Angola and Gabon in 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 periods presented. | |
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, 2014. | |
Recently Issued Accounting Standards | |
In April 2015, the FASB amended Accounting Standard Codification Subtopic No. 835-30, Interest—Imputation of Interest (the "ASC Subtopic 835-30"). The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments. The amendments under ASC Subtopic 835-30 are effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. However, early adoption is permitted for financial statements that have not been previously issued. The Company expects to comply with the amendments to ASC Subtopic 830-30 for its financial statements at its effective date beginning after December 15, 2015. | |
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 March 31, 2015 and December 31, 2014. 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 March 31, 2015 and December 31, 2014, 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 9—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, the 2.625% convertible senior notes due 2019 and the 3.125% convertible senior notes due 2024, during the period, unless their effect is anti-dilutive. For the three months ended March 31, 2015, 10,085,521 shares of non-vested restricted stock, non-vested restricted stock units, outstanding stock options, the shares underlying the 2.625% convertible senior notes due 2019 and the 3.125% convertible senior notes due 2024, were excluded from the diluted income (loss) per share because they are anti-dilutive. For the three months ended March 31, 2014, 8,606,462 shares of non-vested restricted stock, non-vested restricted stock units, outstanding stock options and the shares underlying the 2.625% convertible senior notes due 2019 were excluded from the diluted income (loss) per share because they are anti-dilutive. | |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Cash and Cash Equivalents. | ||||||||
Cash and Cash Equivalents | ||||||||
2. Cash and Cash Equivalents | ||||||||
Cash and cash equivalents consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
($ in thousands) | ||||||||
Cash at banks | $ | 121,512 | $ | 57,750 | ||||
Money market funds | 111,310 | 122,218 | ||||||
Held-to-maturity securities(1) | 121,981 | 78,753 | ||||||
| | | | | | | | |
$ | 354,803 | $ | 258,721 | |||||
| | | | | | | | |
| | | | | | | | |
-1 | These securities mature three months or less from the date of purchase. | |||||||
Restricted_Funds
Restricted Funds | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Restricted Funds | ||||||||
Restricted Funds | ||||||||
3. Restricted Funds | ||||||||
Restricted funds consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
($ in thousands) | ||||||||
Short-term: | ||||||||
Collateral on letters of credit for Angola | $ | 22,538 | $ | 45,062 | ||||
| | | | | | | | |
$ | 22,538 | $ | 45,062 | |||||
| | | | | | | | |
Long-term: | ||||||||
Collateral on letters of credit for Angola | $ | 82,419 | $ | 105,051 | ||||
| | | | | | | | |
$ | 82,419 | $ | 105,051 | |||||
| | | | | | | | |
Total restricted funds(1) | $ | 104,957 | $ | 150,113 | ||||
| | | | | | | | |
| | | | | | | | |
-1 | As of March 31, 2015, $105.0 million was held in a collateral account established to secure letters of credit issued in support of the Company's contractually agreed work program obligations on Blocks 9 and 20 offshore Angola. As of December 31, 2014, $150.1 million was held in a collateral account established to secure letters of credit issued in support of the Company's contractually agreed work program obligations on Blocks 9, 20 and 21 offshore Angola. As of March 31, 2015 and December 31, 2014, the collateral in this account was invested in U.S. Treasury notes purchased at discounts and at premiums, respectively, resulting in a net carrying value of $105.0 million and $150.1 million, respectively. The contractual maturities of these securities are within one year. | |||||||
Joint_Interest_and_Other_Recei
Joint Interest and Other Receivables | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Joint Interest and Other Receivables | ||||||||
Joint Interest and Other Receivables | ||||||||
4. Joint Interest and Other Receivables | ||||||||
Joint interest and other receivables result primarily from billing shared costs under the respective operating agreements to the Company's partners. These are usually settled within 30 days of the invoice date. As of March 31, 2015 and December 31, 2014, the balance in joint interest and other receivables consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
($ in thousands) | ||||||||
Partners in the U.S. Gulf of Mexico | $ | 22,603 | $ | 3,274 | ||||
Partners in West Africa | — | 46,312 | ||||||
Accrued interest on investment securities | 6,674 | 7,663 | ||||||
Other | 254 | 2,725 | ||||||
| | | | | | | | |
$ | 29,531 | $ | 59,974 | |||||
| | | | | | | | |
| | | | | | | | |
Investments
Investments | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Investments | ||||||||||||||
Investments | ||||||||||||||
5. Investments | ||||||||||||||
The Company's investments in held-to-maturity securities which are recorded at amortized cost and approximate fair market value, were as follows as of March 31, 2015 and December 31, 2014: | ||||||||||||||
March 31, | December 31, | |||||||||||||
2015 | 2014 | |||||||||||||
($ in thousands) | ||||||||||||||
U.S. Treasury bills | $ | 46,054 | $ | 46,064 | ||||||||||
U.S. Treasury notes | 104,957 | 104,049 | ||||||||||||
Corporate securities | 1,152,688 | 1,321,261 | ||||||||||||
Commercial paper | 358,728 | 483,534 | ||||||||||||
U.S. Agency securities | 24,997 | 24,996 | ||||||||||||
Certificates of deposit | 130,210 | 105,215 | ||||||||||||
| | | | | | | | |||||||
Total | $ | 1,817,634 | $ | 2,085,119 | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
The Company's condensed consolidated balance sheet included the following held-to-maturity securities: | ||||||||||||||
March 31, | December 31, | |||||||||||||
2015 | 2014 | |||||||||||||
($ in thousands) | ||||||||||||||
Cash and cash equivalents | $ | 121,981 | $ | 78,753 | ||||||||||
Short-term investments | 1,525,072 | 1,530,206 | ||||||||||||
Short-term restricted funds | 22,538 | 45,062 | ||||||||||||
Long-term restricted funds | 82,419 | 105,051 | ||||||||||||
Long-term investments | 65,624 | 326,047 | ||||||||||||
| | | | | | | | |||||||
$ | 1,817,634 | $ | 2,085,119 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
The contractual maturities of these held-to-maturity securities as of March 31, 2015 and December 31, 2014 were as follows: | ||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||
($ in thousands) | ||||||||||||||
Within 1 year | $ | 1,647,053 | $ | 1,647,053 | $ | 1,759,072 | $ | 1,759,072 | ||||||
After 1 year | 170,581 | 170,581 | 326,047 | 326,047 | ||||||||||
| | | | | | | | | | | | | | |
$ | 1,817,634 | $ | 1,817,634 | $ | 2,085,119 | $ | 2,085,119 | |||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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, short-term 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, commercial paper, U.S. agency securities, corporate 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 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | Balance as of | |||||||||||||
Value | Value(1) | Value | Value(1) | March 31, | |||||||||||||
2015 | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 121,512 | $ | 121,512 | $ | — | $ | — | $ | 121,512 | |||||||
Money market funds | 111,310 | 111,310 | — | — | 111,310 | ||||||||||||
Commercial paper | — | — | 121,981 | 121,981 | 121,981 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | 232,822 | 232,822 | 121,981 | 121,981 | 354,803 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Short-term restricted funds: | |||||||||||||||||
U.S. Treasury notes | — | — | 22,538 | 22,538 | 22,538 | ||||||||||||
| | | | | | | | | | | | | | | | | |
— | — | 22,538 | 22,538 | 22,538 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Short-term investments: | |||||||||||||||||
U.S. government agency securities | — | — | 24,997 | 24,997 | 24,997 | ||||||||||||
U.S Treasury bills | — | — | 46,054 | 46,054 | 46,054 | ||||||||||||
Corporate bonds | — | — | 1,087,064 | 1,087,064 | 1,087,064 | ||||||||||||
Commercial paper | — | — | 236,747 | 236,747 | 236,747 | ||||||||||||
Certificates of deposits | — | — | 130,210 | 130,210 | 130,210 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 1,525,072 | 1,525,072 | 1,525,072 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Long-term restricted funds: | |||||||||||||||||
U.S. Treasury notes | — | — | 82,419 | 82,419 | 82,419 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 82,419 | 82,419 | 82,419 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Long-term investments: | |||||||||||||||||
Corporate bonds | — | — | 65,624 | 65,624 | 65,624 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 65,624 | 65,624 | 65,624 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 232,822 | $ | 232,822 | $ | 1,817,634 | $ | 1,817,634 | $ | 2,050,456 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Level 1 | Level 2 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | Balance as of | |||||||||||||
Value | Value(1) | Value | Value(1) | December 31, | |||||||||||||
2014 | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 57,750 | $ | 57,750 | $ | — | $ | — | $ | 57,750 | |||||||
Money market funds | 122,218 | 122,218 | — | — | 122,218 | ||||||||||||
Commercial paper | — | — | 70,524 | 70,524 | 70,524 | ||||||||||||
Corporate bonds | 8,229 | 8,229 | 8,229 | ||||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | 179,968 | 179,968 | 78,753 | 78,753 | 258,721 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Short-term restricted funds: | |||||||||||||||||
U.S. Treasury bills | — | — | 45,062 | 45,062 | 45,062 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 45,062 | 45,062 | 45,062 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Short-term investments: | |||||||||||||||||
U.S. Agency securities | — | — | 24,996 | 24,996 | 24,996 | ||||||||||||
Corporate bonds | — | — | 986,985 | 986,985 | 986,985 | ||||||||||||
Commercial paper | — | — | 413,010 | 413,010 | 413,010 | ||||||||||||
Certificates of deposit | — | — | 105,215 | 105,215 | 105,215 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 1,530,206 | 1,530,206 | 1,530,206 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Long-term restricted funds: | |||||||||||||||||
U.S. Treasury bills | — | — | 1,002 | 1,002 | 1,002 | ||||||||||||
U.S. Treasury notes | — | — | 104,049 | 104,049 | 104,049 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 105,051 | 105,051 | 105,051 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Long-term investments: | |||||||||||||||||
Corporate bonds | — | — | 326,047 | 326,047 | 326,047 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 326,047 | 326,047 | 326,047 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 179,968 | $ | 179,968 | $ | 2,085,119 | $ | 2,085,119 | $ | 2,265,087 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | As of March 31, 2015 and December 31, 2014, the Company did not record any OTTI on these assets. | ||||||||||||||||
Property_Plant_and_Equipment
Property, Plant, and Equipment | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
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 | March 31, | December 31, | ||||||||
Useful Life | 2015 | 2014 | ||||||||
(Years) | ||||||||||
($ in thousands) | ||||||||||
Oil and Gas Properties: | ||||||||||
Proved properties: | ||||||||||
Well and development costs | $ | 229,170 | $ | 183,221 | ||||||
| | | | | | | | | | |
Total proved properties | 229,170 | 183,221 | ||||||||
| | | | | | | | | | |
Unproved properties: | ||||||||||
Oil and gas leasehold | 743,079 | 762,518 | ||||||||
Less: accumulated valuation allowance | (194,384 | ) | (211,224 | ) | ||||||
| | | | | | | | | | |
548,695 | 551,294 | |||||||||
Exploration wells in process | 1,307,209 | 1,186,464 | ||||||||
| | | | | | | | | | |
Total unproved properties | 1,855,904 | 1,737,758 | ||||||||
| | | | | | | | | | |
Total oil and gas properties, net | 2,085,074 | 1,920,979 | ||||||||
| | | | | | | | | | |
Other Property and Equipment: | ||||||||||
Computer equipment and software | 3 | 5,727 | 5,672 | |||||||
Office equipment and furniture | 3 - 5 | 2,140 | 2,139 | |||||||
Vehicles | 3 | 265 | 265 | |||||||
Leasehold improvements | 3 - 10 | 2,495 | 2,488 | |||||||
Running tools and equipment | 3 | 9,795 | 9,795 | |||||||
| | | | | | | | | | |
20,422 | 20,359 | |||||||||
Less: accumulated depreciation and amortization | (10,319 | ) | (8,977 | ) | ||||||
| | | | | | | | | | |
Total other property and equipment, net | 10,103 | 11,382 | ||||||||
| | | | | | | | | | |
Property, plant, and equipment, net | $ | 2,095,177 | $ | 1,932,361 | ||||||
| | | | | | | | | | |
| | | | | | | | | | |
The Company recorded $1.3 million and $1.1 million of depreciation and amortization expense for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||
Proved Oil and Gas Properties | ||||||||||
The Heidelberg project was formally sanctioned for development in mid-2013. As a result of the project sanction, the Company reclassified its Heidelberg exploration well costs to proved property well and development costs and these costs will be amortized when the related proved developed reserves are produced. During the quarter ended March 31, 2015, the Company assigned its 9.375% ownership interest in the Heidelberg prospect to its indirect wholly-owned subsidiary, Cobalt GOM #1, LLC ("GOM #1"). As a result, the carrying value of the costs capitalized for all the Heidelberg projects as of March 31, 2015 were transferred to GOM #1. GOM #1 was established to secure the Heidelberg assets for future debt instruments to fund the Heidelberg development project. As of March 31, 2015, the well and development costs consist of $89.6 million relating to exploration, appraisal and development well costs and $139.6 million for costs associated with field development. As of December 31, 2014, the well and development costs consist of $51.1 million relating to exploration, appraisal and development well costs and $132.1 million for costs associated with field development. | ||||||||||
Unproved Oil and Gas Properties | ||||||||||
As of March 31, 2015 and December 31, 2014, the Company has the following unproved property acquisition costs, net of valuation allowance on the consolidated balance sheets: | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
($ in thousands) | ||||||||||
U.S. Gulf of Mexico: | ||||||||||
Individual oil and gas leaseholds with carrying value greater than $1 million | $ | 301,292 | $ | 320,731 | ||||||
Individual oil and gas leaseholds with carrying value less than $1 million | 83,916 | 83,916 | ||||||||
| | | | | | | | |||
385,208 | 404,647 | |||||||||
Accumulated valuation allowance & impairment | (191,884 | ) | (208,724 | ) | ||||||
| | | | | | | | |||
193,324 | 195,923 | |||||||||
| | | | | | | | |||
West Africa: | ||||||||||
Blocks 9, 20 and 21 offshore Angola(1) | 355,876 | 355,876 | ||||||||
Diaba Block offshore Gabon | 1,995 | 1,995 | ||||||||
| | | | | | | | |||
357,871 | 357,871 | |||||||||
Accumulated impairment | (2,500 | ) | (2,500 | ) | ||||||
| | | | | | | | |||
355,371 | 355,371 | |||||||||
| | | | | | | | |||
Total oil and gas leasehold | $ | 548,695 | $ | 551,294 | ||||||
| | | | | | | | |||
| | | | | | | | |||
-1 | In 2010, the Company acquired a license to explore for, develop and produce oil from Block 21 offshore Angola by executing a Risk Service Agreement ("Block 21 RSA") with Sonangol. The Block 21 RSA governs the Company's 40% working interest in and operatorship of Block 21 offshore Angola and forms the basis of the Company's exploration, development and production operations on this block. The Block 21 RSA provides for an initial exploration period of five years, which expired on March 1, 2015. The Company has applied for an extension of the initial exploration period for Block 21 to enable the Company to continue its exploration efforts, however, this extension is currently pending approval by Sonangol and the Angola Ministry of Petroleum. | |||||||||
Capitalized Exploration Well Costs | ||||||||||
If an exploration well provides evidence as to the existence of sufficient quantities of hydrocarbons to justify evaluation for potential development, 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 exploration well costs (excluding any related leasehold costs): | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
($ in thousands) | ||||||||||
Beginning of period | $ | 1,186,464 | $ | 777,823 | ||||||
Additions to capitalized exploration | ||||||||||
U.S. Gulf of Mexico: | ||||||||||
Exploration well costs | 23,943 | 143,431 | ||||||||
Capitalized interest | 3,544 | 6,965 | ||||||||
West Africa: | ||||||||||
Exploration well costs | 96,739 | 379,461 | ||||||||
Capitalized interest | 13,697 | 44,243 | ||||||||
Reclassifications to wells, facilities, and equipment based on determination of proved reserves | — | — | ||||||||
Amounts charged to expense(1) | (17,178 | ) | (165,459 | ) | ||||||
| | | | | | | | |||
End of period | $ | 1,307,209 | $ | 1,186,464 | ||||||
| | | | | | | | |||
| | | | | | | | |||
-1 | The amount of $17.2 million for the three months ended March 31, 2015 represents primarily impairment charges related to the North Platte #2 appraisal well and additional charges on exploratory wells which were impaired in 2014. The North Platte #2 appraisal well was plugged and abandoned due to a seal failure in the riser connection system. The well was at a depth of 20,701 feet when the problem with the riser was detected. The Company is continuing to assess what additional impairment charges or other liabilities, including any environmental liabilities, might be incurred in future periods related to the North Platte #2 appraisal well and what costs may be recouped from the drilling contractor. | |||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
($ in thousands) | ||||||||||
Cumulative costs: | ||||||||||
U.S. Gulf of Mexico | ||||||||||
Exploration well costs | $ | 290,650 | $ | 283,885 | ||||||
Capitalized interest | 14,438 | 10,894 | ||||||||
West Africa | ||||||||||
Exploration well costs | 930,573 | 835,171 | ||||||||
Capitalized interest | 71,548 | 56,514 | ||||||||
| | | | | | | | |||
$ | 1,307,209 | $ | 1,186,464 | |||||||
| | | | | | | | |||
| | | | | | | | |||
Well costs capitalized for a period greater than one year after completion of drilling (included in table above) | $ | 900,003 | $ | 775,379 | ||||||
| | | | | | | | |||
| | | | | | | | |||
As of March 31, 2015, capitalized exploration well costs that have been suspended longer than one year are associated with the Company's Shenandoah, North Platte, Cameia, Bicuar, Lontra, Orca, Mavinga and Diaman discoveries. These well costs 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 exploration and appraisal well costs were reclassified to development costs in 2013. | ||||||||||
Other_Assets
Other Assets | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Assets | ||||||||
Other Assets | ||||||||
8. Other Assets | ||||||||
As of March 31, 2015 and December 31, 2014, the balance in other assets consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Debt issue cost(1) | $ | 35,822 | $ | 36,708 | ||||
Long-term portion of prepaid shorebase leases | 1,909 | 2,244 | ||||||
Rig costs(2) | 25,959 | 14,984 | ||||||
| | | | | | | | |
$ | 63,690 | $ | 53,936 | |||||
| | | | | | | | |
| | | | | | | | |
-1 | As of March 31, 2015, the $35.8 million in debt issue costs was related to the issuance of the Company's 2.625% convertible senior notes due 2019 and the Company's 3.125% convertible senior notes due 2024, as described in Note 9. As of December 31, 2014, the $36.7 million in debt issue costs included $18.5 million and $18.2 million in costs related to the issuance of the Company's 2.625% convertible senior notes due 2019 and the Company's 3.125% convertible senior notes due 2024, respectively, as described in Note 9. These debt issue costs are amortized over the life of the notes using the effective interest method. | |||||||
-2 | As of March 31, 2015 and December 31, 2014, the $26.0 million and $15.0 million, respectively, relate to costs associated with the long-term mobilization and the regulatory acceptance testing of the SSV Catarina drilling rig which is currently drilling in West Africa, and costs relating to the Rowan Reliance drilling rig which is currently drilling in U.S. Gulf of Mexico. These costs are amortized over the term of the respective drilling rig contracts. | |||||||
Longterm_Debt
Long-term Debt | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Long-term Debt | ||||||||||||||||||||
Long-term Debt | ||||||||||||||||||||
9. Long-term Debt | ||||||||||||||||||||
As of March 31, 2015, the Company's long-term debt consists of the 2.625% convertible senior notes due 2019 issued on December 17, 2012 (the "2.625% Notes") and the 3.125% convertible senior notes due 2024 issued on May 13, 2014 (the "3.125% Notes", and, collectively with the 2.625% Notes, the "Notes") as follows: | ||||||||||||||||||||
2.625% Convertible Senior Notes due 2019 | ||||||||||||||||||||
On December 17, 2012, the Company issued $1.38 billion aggregate principal amount of the 2.625% Notes. The 2.625% 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. The 2.625% Notes will mature on December 1, 2019, unless earlier repurchased or converted in accordance with the terms of the 2.625% Notes. The 2.625% 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 2.625% 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 2.625% 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. | ||||||||||||||||||||
3.125% Convertible Senior Notes due 2024 | ||||||||||||||||||||
On May 13, 2014, the Company issued $1.3 billion aggregate principal amount of the 3.125% Notes. The 3.125% Notes are the Company's senior unsecured obligations and rank equal in right of payment to the 2.625% Notes. Interest on the 3.125% Notes is payable semi-annually in arrears on May 15 and November 15 of each year. The 3.125% Notes will mature on May 15, 2024, unless earlier repurchased, converted or redeemed in accordance with the terms of the Notes. Prior to November 15, 2023, the 3.125% Notes are convertible only under the following circumstances: (1) during any fiscal quarter commencing after March 31, 2015 (and only during such fiscal quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a 30 consecutive trading-day period ending on, and including, the last trading day of the immediately preceding fiscal quarter exceeds $30.00 on each applicable trading day; (2) during the five business-day period after any five consecutive trading-day period (the "3.125% Notes Measurement Period") in which the trading price per $1,000 principal amount of notes for each trading day of the 3.125% Notes Measurement Period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day; (3) if the Company calls all or any portion of the 3.125% Notes for redemption, at any time prior to 5:00 p.m., New York City time, on the second scheduled trading day immediately preceding the related redemption date; or (4) upon the occurrence of specified distributions or the occurrence of specified corporate events. On or after November 15, 2023, the 3.125% 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 stated maturity date, in multiples of $1,000 principal amount. As of March 31, 2015, none of the conditions allowing holders of the 3.125% Notes to convert had been met. | ||||||||||||||||||||
The 3.125% Notes are convertible at an initial conversion rate of 43.3604 shares of common stock per $1,000 principal amount, representing an initial conversion price of approximately $23.06 per share for a total of approximately 56.4 million underlying shares. The conversion rate is subject to adjustment upon the occurrence of certain events, as defined in the indenture governing the 3.125% 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 these 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 Notes excluding the conversion feature at the date of issuance was calculated based on the fair value of similar non-convertible debt instruments. The resulting value of the conversion option of the Notes 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 allocated to the liability component and to the equity component of the Notes accordingly. 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 were approximately 8.40% and 8.97% on the 2.625% Notes and the 3.125% Notes, respectively, 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: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Principal | Unamortized | Carrying | Principal | Unamortized | Carrying | |||||||||||||||
Amount | discount(1) | Amount | Amount | discount | Amount | |||||||||||||||
($ in thousands) | ||||||||||||||||||||
Carrying amount of liability component | ||||||||||||||||||||
2.625% Notes | $ | 1,380,000 | $ | (282,764 | ) | $ | 1,097,236 | $ | 1,380,000 | $ | (295,509 | ) | $ | 1,084,491 | ||||||
3.125% Notes | 1,300,000 | (447,943 | ) | 852,057 | 1,300,000 | (455,963 | ) | 844,037 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 2,680,000 | $ | (730,707 | ) | $ | 1,949,293 | $ | 2,680,000 | $ | (751,472 | ) | $ | 1,928,528 | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | Unamortized discount will be amortized over the remaining life of the Notes which is 4.75 years for the 2.625% Notes and 9.25 years for the 3.125% Notes. | |||||||||||||||||||
The carrying amounts of the equity components of the Notes were as follows: | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Debt discount relating to value of conversion option | $ | 866,340 | $ | 866,340 | ||||||||||||||||
Debt issue costs | (20,185 | ) | (20,185 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 846,155 | $ | 846,155 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Fair Value The fair value of the Notes excluding the conversion feature was calculated based on the fair value of similar non-convertible debt instruments since an observable quoted price of the Notes or a similar asset or liability is not readily available (level 2). As of March 31, 2015 and December 31, 2014, the fair values of the Notes were as follows: | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
2.625% Notes | $ | 1,363,000 | $ | 1,361,000 | ||||||||||||||||
3.125% Notes | 1,086,000 | 1,047,000 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 2,449,000 | $ | 2,408,000 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
As of March 31, 2015, the Company had $27.0 million in accrued interest on the Notes. | ||||||||||||||||||||
For the three months ended March 31, 2015 and 2014, the interest expense, net of capitalized amount, relating to the Notes was $20.0 million and $10.6 million, respectively. | ||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, the debt discounts associated with the 2.625% Notes and the 3.125% Notes resulted in the recognition of $234.0 million and $264.3 million of deferred tax liability, respectively. The Company is in an overall net deferred tax assets position with a full valuation allowance. Therefore, the Company has determined that it is more likely than not that all of the deferred tax assets will not be realized. | ||||||||||||||||||||
Contractual_Obligations
Contractual Obligations | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Contractual Obligations | ||||||||
Contractual Obligations | ||||||||
10. Contractual Obligations | ||||||||
The short-term and long-term contractual obligations consist of the following: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
($ in thousands) | ||||||||
Short-term Contractual Obligations: | ||||||||
Social obligation payments for Block 9, offshore Angola | $ | 21,875 | $ | 560 | ||||
Social obligation payments for Block 21, offshore Angola | 409 | 1,156 | ||||||
Social obligation and bonus payments for Block 20, offshore Angola(1) | 85,710 | 48,569 | ||||||
| | | | | | | | |
$ | 107,994 | $ | 50,285 | |||||
| | | | | | | | |
| | | | | | | | |
Long-term Contractual Obligations: | ||||||||
Social and work program obligation payments for Block 9, offshore Angola | $ | — | $ | 21,875 | ||||
Social obligation payments for Block 21, offshore Angola | 1,381 | 74 | ||||||
Social obligation and bonus payments for Block 20, offshore Angola(1) | — | 79,996 | ||||||
| | | | | | | | |
$ | 1,381 | $ | 101,945 | |||||
| | | | | | | | |
| | | | | | | | |
-1 | The total amount of social obligation payments for Block 20 has been capitalized. | |||||||
Seismic_and_Exploration_Expens
Seismic and Exploration Expenses | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Seismic and Exploration Expenses | ||||||||
Seismic and Exploration Expenses | ||||||||
11. Seismic and Exploration Expenses | ||||||||
Seismic and exploration expenses consisted of the following: | ||||||||
Three Months | ||||||||
Ended March 31, | ||||||||
2015 | 2014 | |||||||
($ in Thousands) | ||||||||
Seismic costs | $ | 12,205 | $ | 3,349 | ||||
Leasehold delay rentals | 1,391 | 1,291 | ||||||
Drilling rig and other exploration expense | 4,173 | 4,336 | ||||||
| | | | | | | | |
$ | 17,769 | $ | 8,976 | |||||
| | | | | | | | |
| | | | | | | | |
Equity_Based_Compensation
Equity Based Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Equity Based Compensation | |
Equity Based Compensation | |
12. 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, stock appreciation rights, 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 Monte Carlo pricing model. Restricted stock awards without market conditions 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. | |
During the three months ended March 31, 2015, the Company granted a total of 3,169,028 shares of restricted stock and 746,268 stock options to employees which include 379,746 shares of restricted stock and 746,268 stock options with both service and market conditions granted to three senior officers under the terms of their employment agreements. During the three months ended March 31, 2015, the Company also granted 12,021 shares of common stock as retainer awards to non-employee directors who elected to be compensated by stock in lieu of cash payments. | |
The Company recorded equity-based compensation expense, net of forfeitures, of $5.8 million and $8.3 million for the three months ended March 31, 2015 and 2014, respectively. | |
On February 20, 2015, the Company issued a total of 1,526,835 stock appreciation rights ("SARs") under the Company's Long Term Incentive Plan (the "Plan") to the Company's officers, using the market price at the time of issuance of $8.87 per share. The SARs will vest with respect to one-third (1/3) of the underlying shares on each anniversary of the grant date over the next three years and may be settled, at the Company's discretion, by issuance of the Company's shares or by cash or by a combination of the Company's shares and cash based on the fair market value of the shares on date of exercise. The fair value of a SAR is determined using the Black-Scholes-Merton option-pricing model which at the date of grant was $4.53 per SAR. The Company accounts for the SAR awards as compensation cost and records a corresponding liability based on the fair value of the SARs at the end of each reporting period. As of March 31, 2015, the fair value of each SAR increased to $4.80, resulting in an increase in the aggregate fair value of the SARs of $0.3 million using the Black-Scholes-Merton option-pricing model. For the three months ended March 31, 2015, the Company recognized $0.3 million in compensation expense relating to the SAR awards. | |
Segment_Information
Segment Information | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Segment Information | |||||||||||
Segment Information | |||||||||||
13. Segment Information | |||||||||||
The Company currently has two geographic operating segments. The operating segments are focused in the deepwater U.S. Gulf of Mexico and offshore West Africa. The following tables provide the geographic operating segment information for the three months ended March 31, 2015 and 2014: | |||||||||||
United | West | Total | |||||||||
States | Africa | ||||||||||
($ in thousands) | |||||||||||
Three months ended March 31, 2015 | |||||||||||
Operating costs and expense | $ | 51,741 | $ | 11,516 | $ | 63,257 | |||||
| | | | | | | | | | | |
Operating income (loss) | (51,741 | ) | (11,516 | ) | (63,257 | ) | |||||
| | | | | | | | | | | |
Other income (expense) | (18,360 | ) | |||||||||
| | | | | | | | | | | |
Net income (loss) | $ | (81,617 | ) | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Additions to Property and Equipment, net(1) | $ | 164,343 | $ | 308,774 | $ | 473,117 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Three months ended March 31, 2014 | |||||||||||
Operating costs and expense | $ | 31,027 | $ | 16,266 | $ | 47,293 | |||||
| | | | | | | | | | | |
Operating income (loss) | (31,027 | ) | (16,266 | ) | (47,293 | ) | |||||
| | | | | | | | | | | |
Other income (expense) | (9,622 | ) | |||||||||
| | | | | | | | | | | |
Net income (loss) | $ | (56,915 | ) | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Additions to Property and Equipment, net(1) | $ | 21,376 | $ | 122,888 | $ | 144,264 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-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 | 3 Months Ended |
Mar. 31, 2015 | |
Contingencies | |
Contingencies | |
14. Contingencies | |
The Company is currently, and from time to time 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. | |
Other_Matters
Other Matters | 3 Months Ended |
Mar. 31, 2015 | |
Other Matters | |
Other Matters | |
15. Other Matters | |
As previously disclosed, in November 2011 a formal order of investigation was issued by the SEC related to our operations in Angola. In August 2014, we received a Wells Notice from the SEC related to this investigation. In January 2015, we received a termination letter from the SEC advising us that the SEC's FCPA investigation has concluded and the Staff does not intend to recommend any enforcement action by the SEC. This letter formally concluded the SEC's investigation. We continue to cooperate with the Department of Justice ("DOJ") with regard to its ongoing parallel investigation. We are unable to predict the outcome of the DOJ's ongoing investigation or any action that the DOJ may decide to pursue. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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 periods presented. | |
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, 2014. | |
Recently Issued Accounting Standards | |
Recently Issued Accounting Standards | |
In April 2015, the FASB amended Accounting Standard Codification Subtopic No. 835-30, Interest—Imputation of Interest (the "ASC Subtopic 835-30"). The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments. The amendments under ASC Subtopic 835-30 are effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. However, early adoption is permitted for financial statements that have not been previously issued. The Company expects to comply with the amendments to ASC Subtopic 830-30 for its financial statements at its effective date beginning after December 15, 2015. | |
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 March 31, 2015 and December 31, 2014. 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 March 31, 2015 and December 31, 2014, 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 9—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, the 2.625% convertible senior notes due 2019 and the 3.125% convertible senior notes due 2024, during the period, unless their effect is anti-dilutive. For the three months ended March 31, 2015, 10,085,521 shares of non-vested restricted stock, non-vested restricted stock units, outstanding stock options, the shares underlying the 2.625% convertible senior notes due 2019 and the 3.125% convertible senior notes due 2024, were excluded from the diluted income (loss) per share because they are anti-dilutive. For the three months ended March 31, 2014, 8,606,462 shares of non-vested restricted stock, non-vested restricted stock units, outstanding stock options and the shares underlying the 2.625% convertible senior notes due 2019 were excluded from the diluted income (loss) per share because they are anti-dilutive. | |
Cash_and_Cash_Equivalents_Tabl
Cash and Cash Equivalents (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Cash and Cash Equivalents. | ||||||||
Cash and cash equivalents | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
($ in thousands) | ||||||||
Cash at banks | $ | 121,512 | $ | 57,750 | ||||
Money market funds | 111,310 | 122,218 | ||||||
Held-to-maturity securities(1) | 121,981 | 78,753 | ||||||
| | | | | | | | |
$ | 354,803 | $ | 258,721 | |||||
| | | | | | | | |
| | | | | | | | |
-1 | These securities mature three months or less from the date of purchase. | |||||||
Restricted_Funds_Tables
Restricted Funds (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Restricted Funds | ||||||||
Schedule of restricted funds | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
($ in thousands) | ||||||||
Short-term: | ||||||||
Collateral on letters of credit for Angola | $ | 22,538 | $ | 45,062 | ||||
| | | | | | | | |
$ | 22,538 | $ | 45,062 | |||||
| | | | | | | | |
Long-term: | ||||||||
Collateral on letters of credit for Angola | $ | 82,419 | $ | 105,051 | ||||
| | | | | | | | |
$ | 82,419 | $ | 105,051 | |||||
| | | | | | | | |
Total restricted funds(1) | $ | 104,957 | $ | 150,113 | ||||
| | | | | | | | |
| | | | | | | | |
-1 | As of March 31, 2015, $105.0 million was held in a collateral account established to secure letters of credit issued in support of the Company's contractually agreed work program obligations on Blocks 9 and 20 offshore Angola. As of December 31, 2014, $150.1 million was held in a collateral account established to secure letters of credit issued in support of the Company's contractually agreed work program obligations on Blocks 9, 20 and 21 offshore Angola. As of March 31, 2015 and December 31, 2014, the collateral in this account was invested in U.S. Treasury notes purchased at discounts and at premiums, respectively, resulting in a net carrying value of $105.0 million and $150.1 million, respectively. The contractual maturities of these securities are within one year. | |||||||
Joint_Interest_and_Other_Recei1
Joint Interest and Other Receivables (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Joint Interest and Other Receivables | ||||||||
Schedule of joint interest and other receivables | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
($ in thousands) | ||||||||
Partners in the U.S. Gulf of Mexico | $ | 22,603 | $ | 3,274 | ||||
Partners in West Africa | — | 46,312 | ||||||
Accrued interest on investment securities | 6,674 | 7,663 | ||||||
Other | 254 | 2,725 | ||||||
| | | | | | | | |
$ | 29,531 | $ | 59,974 | |||||
| | | | | | | | |
| | | | | | | | |
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Investments | ||||||||||||||
Schedule of fair value of held-to-maturity securities recorded at amortized cost | ||||||||||||||
March 31, | December 31, | |||||||||||||
2015 | 2014 | |||||||||||||
($ in thousands) | ||||||||||||||
U.S. Treasury bills | $ | 46,054 | $ | 46,064 | ||||||||||
U.S. Treasury notes | 104,957 | 104,049 | ||||||||||||
Corporate securities | 1,152,688 | 1,321,261 | ||||||||||||
Commercial paper | 358,728 | 483,534 | ||||||||||||
U.S. Agency securities | 24,997 | 24,996 | ||||||||||||
Certificates of deposit | 130,210 | 105,215 | ||||||||||||
| | | | | | | | |||||||
Total | $ | 1,817,634 | $ | 2,085,119 | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Schedule of held-to-maturity securities included in the company's condensed consolidated balance sheet | ||||||||||||||
March 31, | December 31, | |||||||||||||
2015 | 2014 | |||||||||||||
($ in thousands) | ||||||||||||||
Cash and cash equivalents | $ | 121,981 | $ | 78,753 | ||||||||||
Short-term investments | 1,525,072 | 1,530,206 | ||||||||||||
Short-term restricted funds | 22,538 | 45,062 | ||||||||||||
Long-term restricted funds | 82,419 | 105,051 | ||||||||||||
Long-term investments | 65,624 | 326,047 | ||||||||||||
| | | | | | | | |||||||
$ | 1,817,634 | $ | 2,085,119 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Schedule of contractual maturities of held-to-maturity securities | ||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||
($ in thousands) | ||||||||||||||
Within 1 year | $ | 1,647,053 | $ | 1,647,053 | $ | 1,759,072 | $ | 1,759,072 | ||||||
After 1 year | 170,581 | 170,581 | 326,047 | 326,047 | ||||||||||
| | | | | | | | | | | | | | |
$ | 1,817,634 | $ | 1,817,634 | $ | 2,085,119 | $ | 2,085,119 | |||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Significant financial instruments as categorized by the fair value measurement hierarchy | |||||||||||||||||
Level 1 | Level 2 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | Balance as of | |||||||||||||
Value | Value(1) | Value | Value(1) | March 31, | |||||||||||||
2015 | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 121,512 | $ | 121,512 | $ | — | $ | — | $ | 121,512 | |||||||
Money market funds | 111,310 | 111,310 | — | — | 111,310 | ||||||||||||
Commercial paper | — | — | 121,981 | 121,981 | 121,981 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | 232,822 | 232,822 | 121,981 | 121,981 | 354,803 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Short-term restricted funds: | |||||||||||||||||
U.S. Treasury notes | — | — | 22,538 | 22,538 | 22,538 | ||||||||||||
| | | | | | | | | | | | | | | | | |
— | — | 22,538 | 22,538 | 22,538 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Short-term investments: | |||||||||||||||||
U.S. government agency securities | — | — | 24,997 | 24,997 | 24,997 | ||||||||||||
U.S Treasury bills | — | — | 46,054 | 46,054 | 46,054 | ||||||||||||
Corporate bonds | — | — | 1,087,064 | 1,087,064 | 1,087,064 | ||||||||||||
Commercial paper | — | — | 236,747 | 236,747 | 236,747 | ||||||||||||
Certificates of deposits | — | — | 130,210 | 130,210 | 130,210 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 1,525,072 | 1,525,072 | 1,525,072 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Long-term restricted funds: | |||||||||||||||||
U.S. Treasury notes | — | — | 82,419 | 82,419 | 82,419 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 82,419 | 82,419 | 82,419 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Long-term investments: | |||||||||||||||||
Corporate bonds | — | — | 65,624 | 65,624 | 65,624 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 65,624 | 65,624 | 65,624 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 232,822 | $ | 232,822 | $ | 1,817,634 | $ | 1,817,634 | $ | 2,050,456 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Level 1 | Level 2 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | Balance as of | |||||||||||||
Value | Value(1) | Value | Value(1) | December 31, | |||||||||||||
2014 | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 57,750 | $ | 57,750 | $ | — | $ | — | $ | 57,750 | |||||||
Money market funds | 122,218 | 122,218 | — | — | 122,218 | ||||||||||||
Commercial paper | — | — | 70,524 | 70,524 | 70,524 | ||||||||||||
Corporate bonds | 8,229 | 8,229 | 8,229 | ||||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | 179,968 | 179,968 | 78,753 | 78,753 | 258,721 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Short-term restricted funds: | |||||||||||||||||
U.S. Treasury bills | — | — | 45,062 | 45,062 | 45,062 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 45,062 | 45,062 | 45,062 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Short-term investments: | |||||||||||||||||
U.S. Agency securities | — | — | 24,996 | 24,996 | 24,996 | ||||||||||||
Corporate bonds | — | — | 986,985 | 986,985 | 986,985 | ||||||||||||
Commercial paper | — | — | 413,010 | 413,010 | 413,010 | ||||||||||||
Certificates of deposit | — | — | 105,215 | 105,215 | 105,215 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 1,530,206 | 1,530,206 | 1,530,206 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Long-term restricted funds: | |||||||||||||||||
U.S. Treasury bills | — | — | 1,002 | 1,002 | 1,002 | ||||||||||||
U.S. Treasury notes | — | — | 104,049 | 104,049 | 104,049 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 105,051 | 105,051 | 105,051 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Long-term investments: | |||||||||||||||||
Corporate bonds | — | — | 326,047 | 326,047 | 326,047 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Subtotal | — | — | 326,047 | 326,047 | 326,047 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 179,968 | $ | 179,968 | $ | 2,085,119 | $ | 2,085,119 | $ | 2,265,087 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | As of March 31, 2015 and December 31, 2014, the Company did not record any OTTI on these assets. | ||||||||||||||||
Property_Plant_and_Equipment_T
Property, Plant, and Equipment (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Property, Plant, and Equipment | ||||||||||
Schedule of Property, Plant, and Equipment | ||||||||||
Estimated | March 31, | December 31, | ||||||||
Useful Life | 2015 | 2014 | ||||||||
(Years) | ||||||||||
($ in thousands) | ||||||||||
Oil and Gas Properties: | ||||||||||
Proved properties: | ||||||||||
Well and development costs | $ | 229,170 | $ | 183,221 | ||||||
| | | | | | | | | | |
Total proved properties | 229,170 | 183,221 | ||||||||
| | | | | | | | | | |
Unproved properties: | ||||||||||
Oil and gas leasehold | 743,079 | 762,518 | ||||||||
Less: accumulated valuation allowance | (194,384 | ) | (211,224 | ) | ||||||
| | | | | | | | | | |
548,695 | 551,294 | |||||||||
Exploration wells in process | 1,307,209 | 1,186,464 | ||||||||
| | | | | | | | | | |
Total unproved properties | 1,855,904 | 1,737,758 | ||||||||
| | | | | | | | | | |
Total oil and gas properties, net | 2,085,074 | 1,920,979 | ||||||||
| | | | | | | | | | |
Other Property and Equipment: | ||||||||||
Computer equipment and software | 3 | 5,727 | 5,672 | |||||||
Office equipment and furniture | 3 - 5 | 2,140 | 2,139 | |||||||
Vehicles | 3 | 265 | 265 | |||||||
Leasehold improvements | 3 - 10 | 2,495 | 2,488 | |||||||
Running tools and equipment | 3 | 9,795 | 9,795 | |||||||
| | | | | | | | | | |
20,422 | 20,359 | |||||||||
Less: accumulated depreciation and amortization | (10,319 | ) | (8,977 | ) | ||||||
| | | | | | | | | | |
Total other property and equipment, net | 10,103 | 11,382 | ||||||||
| | | | | | | | | | |
Property, plant, and equipment, net | $ | 2,095,177 | $ | 1,932,361 | ||||||
| | | | | | | | | | |
| | | | | | | | | | |
Schedule of unproved property acquisition costs, net of valuation allowance | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
($ in thousands) | ||||||||||
U.S. Gulf of Mexico: | ||||||||||
Individual oil and gas leaseholds with carrying value greater than $1 million | $ | 301,292 | $ | 320,731 | ||||||
Individual oil and gas leaseholds with carrying value less than $1 million | 83,916 | 83,916 | ||||||||
| | | | | | | | |||
385,208 | 404,647 | |||||||||
Accumulated valuation allowance & impairment | (191,884 | ) | (208,724 | ) | ||||||
| | | | | | | | |||
193,324 | 195,923 | |||||||||
| | | | | | | | |||
West Africa: | ||||||||||
Blocks 9, 20 and 21 offshore Angola(1) | 355,876 | 355,876 | ||||||||
Diaba Block offshore Gabon | 1,995 | 1,995 | ||||||||
| | | | | | | | |||
357,871 | 357,871 | |||||||||
Accumulated impairment | (2,500 | ) | (2,500 | ) | ||||||
| | | | | | | | |||
355,371 | 355,371 | |||||||||
| | | | | | | | |||
Total oil and gas leasehold | $ | 548,695 | $ | 551,294 | ||||||
| | | | | | | | |||
| | | | | | | | |||
-1 | In 2010, the Company acquired a license to explore for, develop and produce oil from Block 21 offshore Angola by executing a Risk Service Agreement ("Block 21 RSA") with Sonangol. The Block 21 RSA governs the Company's 40% working interest in and operatorship of Block 21 offshore Angola and forms the basis of the Company's exploration, development and production operations on this block. The Block 21 RSA provides for an initial exploration period of five years, which expired on March 1, 2015. The Company has applied for an extension of the initial exploration period for Block 21 to enable the Company to continue its exploration efforts, however, this extension is currently pending approval by Sonangol and the Angola Ministry of Petroleum. | |||||||||
Schedule of net changes in capitalized exploration well costs | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
($ in thousands) | ||||||||||
Beginning of period | $ | 1,186,464 | $ | 777,823 | ||||||
Additions to capitalized exploration | ||||||||||
U.S. Gulf of Mexico: | ||||||||||
Exploration well costs | 23,943 | 143,431 | ||||||||
Capitalized interest | 3,544 | 6,965 | ||||||||
West Africa: | ||||||||||
Exploration well costs | 96,739 | 379,461 | ||||||||
Capitalized interest | 13,697 | 44,243 | ||||||||
Reclassifications to wells, facilities, and equipment based on determination of proved reserves | — | — | ||||||||
Amounts charged to expense(1) | (17,178 | ) | (165,459 | ) | ||||||
| | | | | | | | |||
End of period | $ | 1,307,209 | $ | 1,186,464 | ||||||
| | | | | | | | |||
| | | | | | | | |||
-1 | The amount of $17.2 million for the three months ended March 31, 2015 represents primarily impairment charges related to the North Platte #2 appraisal well and additional charges on exploratory wells which were impaired in 2014. The North Platte #2 appraisal well was plugged and abandoned due to a seal failure in the riser connection system. The well was at a depth of 20,701 feet when the problem with the riser was detected. The Company is continuing to assess what additional impairment charges or other liabilities, including any environmental liabilities, might be incurred in future periods related to the North Platte #2 appraisal well and what costs may be recouped from the drilling contractor. | |||||||||
Schedule of cumulative costs of capitalized exploration well costs | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
($ in thousands) | ||||||||||
Cumulative costs: | ||||||||||
U.S. Gulf of Mexico | ||||||||||
Exploration well costs | $ | 290,650 | $ | 283,885 | ||||||
Capitalized interest | 14,438 | 10,894 | ||||||||
West Africa | ||||||||||
Exploration well costs | 930,573 | 835,171 | ||||||||
Capitalized interest | 71,548 | 56,514 | ||||||||
| | | | | | | | |||
$ | 1,307,209 | $ | 1,186,464 | |||||||
| | | | | | | | |||
| | | | | | | | |||
Well costs capitalized for a period greater than one year after completion of drilling (included in table above) | $ | 900,003 | $ | 775,379 | ||||||
| | | | | | | | |||
| | | | | | | | |||
Other_Assets_Tables
Other Assets (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Assets | ||||||||
Schedule of other assets | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Debt issue cost(1) | $ | 35,822 | $ | 36,708 | ||||
Long-term portion of prepaid shorebase leases | 1,909 | 2,244 | ||||||
Rig costs(2) | 25,959 | 14,984 | ||||||
| | | | | | | | |
$ | 63,690 | $ | 53,936 | |||||
| | | | | | | | |
| | | | | | | | |
-1 | As of March 31, 2015, the $35.8 million in debt issue costs was related to the issuance of the Company's 2.625% convertible senior notes due 2019 and the Company's 3.125% convertible senior notes due 2024, as described in Note 9. As of December 31, 2014, the $36.7 million in debt issue costs included $18.5 million and $18.2 million in costs related to the issuance of the Company's 2.625% convertible senior notes due 2019 and the Company's 3.125% convertible senior notes due 2024, respectively, as described in Note 9. These debt issue costs are amortized over the life of the notes using the effective interest method. | |||||||
-2 | As of March 31, 2015 and December 31, 2014, the $26.0 million and $15.0 million, respectively, relate to costs associated with the long-term mobilization and the regulatory acceptance testing of the SSV Catarina drilling rig which is currently drilling in West Africa, and costs relating to the Rowan Reliance drilling rig which is currently drilling in U.S. Gulf of Mexico. These costs are amortized over the term of the respective drilling rig contracts. | |||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Long-term Debt | ||||||||||||||||||||
Schedule of the carrying amounts of the liability components of the Notes | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Principal | Unamortized | Carrying | Principal | Unamortized | Carrying | |||||||||||||||
Amount | discount(1) | Amount | Amount | discount | Amount | |||||||||||||||
($ in thousands) | ||||||||||||||||||||
Carrying amount of liability component | ||||||||||||||||||||
2.625% Notes | $ | 1,380,000 | $ | (282,764 | ) | $ | 1,097,236 | $ | 1,380,000 | $ | (295,509 | ) | $ | 1,084,491 | ||||||
3.125% Notes | 1,300,000 | (447,943 | ) | 852,057 | 1,300,000 | (455,963 | ) | 844,037 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 2,680,000 | $ | (730,707 | ) | $ | 1,949,293 | $ | 2,680,000 | $ | (751,472 | ) | $ | 1,928,528 | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | Unamortized discount will be amortized over the remaining life of the Notes which is 4.75 years for the 2.625% Notes and 9.25 years for the 3.125% Notes. | |||||||||||||||||||
Schedule of carrying amounts of the equity components of the Notes | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Debt discount relating to value of conversion option | $ | 866,340 | $ | 866,340 | ||||||||||||||||
Debt issue costs | (20,185 | ) | (20,185 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 846,155 | $ | 846,155 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Schedule of the fair value of the Notes excluding the conversion feature | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
2.625% Notes | $ | 1,363,000 | $ | 1,361,000 | ||||||||||||||||
3.125% Notes | 1,086,000 | 1,047,000 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 2,449,000 | $ | 2,408,000 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Contractual_Obligations_Tables
Contractual Obligations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Contractual Obligations | ||||||||
Summary of components of short-term and long-term contractual obligations | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
($ in thousands) | ||||||||
Short-term Contractual Obligations: | ||||||||
Social obligation payments for Block 9, offshore Angola | $ | 21,875 | $ | 560 | ||||
Social obligation payments for Block 21, offshore Angola | 409 | 1,156 | ||||||
Social obligation and bonus payments for Block 20, offshore Angola(1) | 85,710 | 48,569 | ||||||
| | | | | | | | |
$ | 107,994 | $ | 50,285 | |||||
| | | | | | | | |
| | | | | | | | |
Long-term Contractual Obligations: | ||||||||
Social and work program obligation payments for Block 9, offshore Angola | $ | — | $ | 21,875 | ||||
Social obligation payments for Block 21, offshore Angola | 1,381 | 74 | ||||||
Social obligation and bonus payments for Block 20, offshore Angola(1) | — | 79,996 | ||||||
| | | | | | | | |
$ | 1,381 | $ | 101,945 | |||||
| | | | | | | | |
| | | | | | | | |
-1 | The total amount of social obligation payments for Block 20 has been capitalized. | |||||||
Seismic_and_Exploration_Expens1
Seismic and Exploration Expenses (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Seismic and Exploration Expenses | ||||||||
Schedule of seismic and exploration expenses | ||||||||
Three Months | ||||||||
Ended March 31, | ||||||||
2015 | 2014 | |||||||
($ in Thousands) | ||||||||
Seismic costs | $ | 12,205 | $ | 3,349 | ||||
Leasehold delay rentals | 1,391 | 1,291 | ||||||
Drilling rig and other exploration expense | 4,173 | 4,336 | ||||||
| | | | | | | | |
$ | 17,769 | $ | 8,976 | |||||
| | | | | | | | |
| | | | | | | | |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Segment Information | |||||||||||
Schedule of segment information by geographic operating segment | |||||||||||
United | West | Total | |||||||||
States | Africa | ||||||||||
($ in thousands) | |||||||||||
Three months ended March 31, 2015 | |||||||||||
Operating costs and expense | $ | 51,741 | $ | 11,516 | $ | 63,257 | |||||
| | | | | | | | | | | |
Operating income (loss) | (51,741 | ) | (11,516 | ) | (63,257 | ) | |||||
| | | | | | | | | | | |
Other income (expense) | (18,360 | ) | |||||||||
| | | | | | | | | | | |
Net income (loss) | $ | (81,617 | ) | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Additions to Property and Equipment, net(1) | $ | 164,343 | $ | 308,774 | $ | 473,117 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Three months ended March 31, 2014 | |||||||||||
Operating costs and expense | $ | 31,027 | $ | 16,266 | $ | 47,293 | |||||
| | | | | | | | | | | |
Operating income (loss) | (31,027 | ) | (16,266 | ) | (47,293 | ) | |||||
| | | | | | | | | | | |
Other income (expense) | (9,622 | ) | |||||||||
| | | | | | | | | | | |
Net income (loss) | $ | (56,915 | ) | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Additions to Property and Equipment, net(1) | $ | 21,376 | $ | 122,888 | $ | 144,264 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-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 | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 17, 2012 | 13-May-14 | |
Investments | |||||
OTTI in debt securities | $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 and 3.125% convertible senior notes due 2024 excluded from the diluted income (loss) per share calculation | 10,085,521 | 8,606,462 | |||
2.625% convertible senior notes due 2019 | |||||
Earnings (Loss) Per Share | |||||
Interest rate (as a percent) | 2.63% | 2.63% | 2.63% | 2.63% | |
3.125% convertible senior notes due 2024 | |||||
Earnings (Loss) Per Share | |||||
Interest rate (as a percent) | 3.13% | 3.13% | 3.13% |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents. | ||||
Cash at banks | $121,512 | $57,750 | ||
Money market funds | 111,310 | 122,218 | ||
Held-to-maturity securities | 121,981 | 78,753 | ||
Total | $354,803 | $258,721 | $151,804 | $192,460 |
Restricted_Funds_Details
Restricted Funds (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Restricted Funds | ||
Short-term restricted funds | $22,538,000 | $45,062,000 |
Long-term restricted funds | 82,419,000 | 105,051,000 |
Collateral on letters of credit for Angola | ||
Restricted Funds | ||
Short-term restricted funds | 22,538,000 | 45,062,000 |
Long-term restricted funds | 82,419,000 | 105,051,000 |
Collateral held | 104,957,000 | 150,113,000 |
Maturity period of investments | 1 year | |
Collateral on letters of credit for Angola - block 9 and 20 | U.S. Treasury notes | ||
Restricted Funds | ||
Net carrying value of investments invested through the funds | 105,000,000 | |
Collateral on letters of credit for Angola - block 9, 20 and 21 | U.S. Treasury notes | ||
Restricted Funds | ||
Net carrying value of investments invested through the funds | $150,100,000 |
Joint_Interest_and_Other_Recei2
Joint Interest and Other Receivables (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Joint Interest and Other Receivables | ||
Settlement period for bills under operating agreements | 30 days | |
Joint Interest Receivables | ||
Accrued interest on investment securities | $6,674 | $7,663 |
Other | 254 | 2,725 |
Total | 29,531 | 59,974 |
Partners in the U.S. Gulf of Mexico | ||
Joint Interest Receivables | ||
Receivable attributable to joint interest partners | 22,603 | 3,274 |
Partners in West Africa | ||
Joint Interest Receivables | ||
Receivable attributable to joint interest partners | $46,312 |
Investments_Details
Investments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments | ||
Fair market value | $1,817,634 | $2,085,119 |
Held-to-maturities, Carrying value | ||
Within 1 year | 1,647,053 | 1,759,072 |
After 1 year | 170,581 | 326,047 |
Total | 1,817,634 | 2,085,119 |
Held-to-maturity securities, Estimated fair value | ||
Within 1 year | 1,647,053 | 1,759,072 |
After 1 year | 170,581 | 326,047 |
Total | 1,817,634 | 2,085,119 |
Cash and cash equivalents | ||
Investments | ||
Fair market value | 121,981 | 78,753 |
Held-to-maturity securities, Estimated fair value | ||
Total | 121,981 | 78,753 |
Short-term investments | ||
Investments | ||
Fair market value | 1,525,072 | 1,530,206 |
Held-to-maturity securities, Estimated fair value | ||
Total | 1,525,072 | 1,530,206 |
Short-term restricted funds | ||
Investments | ||
Fair market value | 22,538 | 45,062 |
Held-to-maturity securities, Estimated fair value | ||
Total | 22,538 | 45,062 |
Long-term restricted funds | ||
Investments | ||
Fair market value | 82,419 | 105,051 |
Held-to-maturity securities, Estimated fair value | ||
Total | 82,419 | 105,051 |
Long-term investments | ||
Investments | ||
Fair market value | 65,624 | 326,047 |
Held-to-maturity securities, Estimated fair value | ||
Total | 65,624 | 326,047 |
U.S. Treasury bills. | ||
Investments | ||
Fair market value | 46,054 | 46,064 |
Held-to-maturity securities, Estimated fair value | ||
Total | 46,054 | 46,064 |
U.S. Treasury notes | ||
Investments | ||
Fair market value | 104,957 | 104,049 |
Held-to-maturity securities, Estimated fair value | ||
Total | 104,957 | 104,049 |
Corporate securities | ||
Investments | ||
Fair market value | 1,152,688 | 1,321,261 |
Held-to-maturity securities, Estimated fair value | ||
Total | 1,152,688 | 1,321,261 |
Commercial paper | ||
Investments | ||
Fair market value | 358,728 | 483,534 |
Held-to-maturity securities, Estimated fair value | ||
Total | 358,728 | 483,534 |
U.S. Agency Securities | ||
Investments | ||
Fair market value | 24,997 | 24,996 |
Held-to-maturity securities, Estimated fair value | ||
Total | 24,997 | 24,996 |
Certificates of deposit | ||
Investments | ||
Fair market value | 130,210 | 105,215 |
Held-to-maturity securities, Estimated fair value | ||
Total | $130,210 | $105,215 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | $354,803 | $258,721 | $151,804 | $192,460 |
Short-term restricted funds | 22,538 | 45,062 | ||
Short-term investments | 1,525,072 | 1,530,206 | ||
Long-term restricted funds | 82,419 | 105,051 | ||
Long-term investments | 65,624 | 326,047 | ||
Total | 2,050,456 | 2,265,087 | ||
Cash. | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 121,512 | 57,750 | ||
Money market funds | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 111,310 | 122,218 | ||
Commercial paper | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 121,981 | 70,524 | ||
Short-term investments | 236,747 | 413,010 | ||
U.S. Agency Securities | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term investments | 24,997 | 24,996 | ||
U.S. Treasury bills | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term restricted funds | 45,062 | |||
Short-term investments | 46,054 | |||
Long-term restricted funds | 1,002 | |||
U.S. Treasury notes | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term restricted funds | 22,538 | |||
U.S. Treasury notes | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Long-term restricted funds | 82,419 | |||
Long-term investments | 104,049 | |||
Corporate securities | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 8,229 | |||
Short-term investments | 1,087,064 | 986,985 | ||
Long-term investments | 65,624 | 326,047 | ||
Certificates of deposit | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term investments | 130,210 | 105,215 | ||
Level 1 | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 232,822 | 179,968 | ||
Total | 232,822 | 179,968 | ||
Level 1 | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 232,822 | 179,968 | ||
Total | 232,822 | 179,968 | ||
Level 1 | Cash. | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 121,512 | 57,750 | ||
Level 1 | Cash. | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 121,512 | 57,750 | ||
Level 1 | Money market funds | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 111,310 | 122,218 | ||
Level 1 | Money market funds | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 111,310 | 122,218 | ||
Level 2 | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 121,981 | 78,753 | ||
Short-term restricted funds | 22,538 | 45,062 | ||
Short-term investments | 1,525,072 | 1,530,206 | ||
Long-term restricted funds | 82,419 | 105,051 | ||
Long-term investments | 65,624 | 326,047 | ||
Total | 1,817,634 | 2,085,119 | ||
Level 2 | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 121,981 | 78,753 | ||
Short-term restricted funds | 22,538 | 45,062 | ||
Short-term investments | 1,525,072 | 1,530,206 | ||
Long-term restricted funds | 82,419 | 105,051 | ||
Long-term investments | 65,624 | 326,047 | ||
Total | 1,817,634 | 2,085,119 | ||
Level 2 | Commercial paper | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 121,981 | 70,524 | ||
Short-term investments | 236,747 | 413,010 | ||
Level 2 | Commercial paper | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 121,981 | 70,524 | ||
Short-term investments | 236,747 | 413,010 | ||
Level 2 | U.S. Agency Securities | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term investments | 24,997 | 24,996 | ||
Level 2 | U.S. Agency Securities | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term investments | 24,997 | 24,996 | ||
Level 2 | U.S. Treasury bills | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term restricted funds | 45,062 | |||
Short-term investments | 46,054 | |||
Long-term restricted funds | 1,002 | |||
Level 2 | U.S. Treasury bills | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term restricted funds | 45,062 | |||
Short-term investments | 46,054 | |||
Long-term restricted funds | 1,002 | |||
Level 2 | U.S. Treasury notes | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term restricted funds | 22,538 | |||
Long-term restricted funds | 82,419 | |||
Long-term investments | 104,049 | |||
Level 2 | U.S. Treasury notes | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term restricted funds | 22,538 | |||
Long-term restricted funds | 82,419 | |||
Long-term investments | 104,049 | |||
Level 2 | Corporate securities | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 8,229 | |||
Short-term investments | 1,087,064 | 986,985 | ||
Long-term investments | 65,624 | 326,047 | ||
Level 2 | Corporate securities | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 8,229 | |||
Short-term investments | 1,087,064 | 986,985 | ||
Long-term investments | 65,624 | 326,047 | ||
Level 2 | Certificates of deposit | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term investments | 130,210 | 105,215 | ||
Level 2 | Certificates of deposit | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term investments | $130,210 | $105,215 |
Property_Plant_and_Equipment_D
Property, Plant, and Equipment (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 01, 2015 | Dec. 31, 2014 | |
Property, Plant, and Equipment | ||||
Well and development costs | $229,170,000 | $183,221,000 | ||
Total proved properties | 229,170,000 | 183,221,000 | ||
Oil and gas leasehold | 743,079,000 | 762,518,000 | ||
Less: accumulated valuation allowance | -194,384,000 | -211,224,000 | ||
Total oil and gas leasehold | 548,695,000 | 551,294,000 | ||
Total unproved properties | 1,855,904,000 | 1,737,758,000 | ||
Total oil and gas properties, net | 2,085,074,000 | 1,920,979,000 | ||
Property, plant, and equipment, gross | 20,422,000 | 20,359,000 | ||
Less: accumulated depreciation and amortization | -10,319,000 | -8,977,000 | ||
Total other property and equipment | 10,103,000 | 11,382,000 | ||
Total property, plant, and equipment, net | 2,095,177,000 | 1,932,361,000 | ||
Depreciation and amortization | 1,342,000 | 1,107,000 | ||
Unproved property acquisition costs, net of valuation allowance | ||||
Unproved property | 743,079,000 | 762,518,000 | ||
Accumulated valuation allowance & impairment | -194,384,000 | -211,224,000 | ||
Total oil and gas leasehold | 548,695,000 | 551,294,000 | ||
Percentage of working interest acquired | 9.38% | |||
Development well costs | ||||
Property, Plant, and Equipment | ||||
Well and development costs | 139,600,000 | 132,100,000 | ||
Exploration wells in process | ||||
Property, Plant, and Equipment | ||||
Total unproved properties | 1,307,209,000 | 1,186,464,000 | ||
Exploration wells in process | Exploration well costs | ||||
Property, Plant, and Equipment | ||||
Well and development costs | 89,600,000 | 51,100,000 | ||
Computer equipment and software | ||||
Property, Plant, and Equipment | ||||
Estimated Useful Life | 3 years | |||
Property, plant, and equipment, gross | 5,727,000 | 5,672,000 | ||
Office equipment and furniture | ||||
Property, Plant, and Equipment | ||||
Property, plant, and equipment, gross | 2,140,000 | 2,139,000 | ||
Office equipment and furniture | Minimum | ||||
Property, Plant, and Equipment | ||||
Estimated Useful Life | 3 years | |||
Office equipment and furniture | Maximum | ||||
Property, Plant, and Equipment | ||||
Estimated Useful Life | 5 years | |||
Vehicles | ||||
Property, Plant, and Equipment | ||||
Estimated Useful Life | 3 years | |||
Property, plant, and equipment, gross | 265,000 | 265,000 | ||
Leasehold improvements | ||||
Property, Plant, and Equipment | ||||
Property, plant, and equipment, gross | 2,495,000 | 2,488,000 | ||
Leasehold improvements | Minimum | ||||
Property, Plant, and Equipment | ||||
Estimated Useful Life | 3 years | |||
Leasehold improvements | Maximum | ||||
Property, Plant, and Equipment | ||||
Estimated Useful Life | 10 years | |||
Running tools and equipment | ||||
Property, Plant, and Equipment | ||||
Estimated Useful Life | 3 years | |||
Property, plant, and equipment, gross | 9,795,000 | 9,795,000 | ||
Oil and gas properties, net | ||||
Property, Plant, and Equipment | ||||
Total oil and gas leasehold | 548,695,000 | 551,294,000 | ||
Unproved property acquisition costs, net of valuation allowance | ||||
Total oil and gas leasehold | 548,695,000 | 551,294,000 | ||
Oil and gas properties, net | U.S. Gulf of Mexico | ||||
Property, Plant, and Equipment | ||||
Oil and gas leasehold | 385,208,000 | 404,647,000 | ||
Less: accumulated valuation allowance | -191,884,000 | -208,724,000 | ||
Unproved property acquisition costs, net of valuation allowance | ||||
Individual oil and gas leaseholds with carrying value greater than $1 million | 301,292,000 | 320,731,000 | ||
Individual oil and gas leaseholds with carrying value less than $1 million | 83,916,000 | 83,916,000 | ||
Unproved property | 385,208,000 | 404,647,000 | ||
Accumulated valuation allowance & impairment | -191,884,000 | -208,724,000 | ||
Unproved property, net of valuation allowance | 193,324,000 | 195,923,000 | ||
Upper limit of individual leasehold | 1,000,000 | 1,000,000 | ||
Lower limit of individual leasehold | 1,000,000 | 1,000,000 | ||
Oil and gas properties, net | West Africa | ||||
Property, Plant, and Equipment | ||||
Oil and gas leasehold | 357,871,000 | 357,871,000 | ||
Less: accumulated valuation allowance | -2,500,000 | -2,500,000 | ||
Unproved property acquisition costs, net of valuation allowance | ||||
Unproved property | 357,871,000 | 357,871,000 | ||
Accumulated valuation allowance & impairment | -2,500,000 | -2,500,000 | ||
Unproved property, net of valuation allowance | 355,371,000 | 355,371,000 | ||
Oil and gas properties, net | Blocks 9, 20 and 21 offshore Angola | ||||
Property, Plant, and Equipment | ||||
Oil and gas leasehold | 355,876,000 | 355,876,000 | ||
Unproved property acquisition costs, net of valuation allowance | ||||
Unproved property | 355,876,000 | 355,876,000 | ||
Oil and gas properties, net | Diaba Block offshore Gabon | ||||
Property, Plant, and Equipment | ||||
Oil and gas leasehold | 1,995,000 | 1,995,000 | ||
Unproved property acquisition costs, net of valuation allowance | ||||
Unproved property | $1,995,000 | $1,995,000 | ||
Oil and gas properties, net | Block 21, offshore Angola | ||||
Unproved property acquisition costs, net of valuation allowance | ||||
Percentage of working interest acquired | 40.00% | |||
Period over which consideration is payable | 5 years |
Property_Plant_and_Equipment_D1
Property, Plant, and Equipment (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
ft | ||
Capitalized Exploratory Well Costs | ||
Period to determine an exploration well has commercially sufficient quantity of proved reserved | 1 year | |
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Beginning of period | $1,186,464 | $777,823 |
Amounts charged to expense | -17,178 | -165,459 |
End of period | 1,307,209 | 1,186,464 |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | 1,307,209 | 1,186,464 |
Well costs capitalized for a period greater than one year after completion of drilling | 900,003 | 775,379 |
Number of feet | 20,701 | |
U.S. Gulf of Mexico | Exploration well costs | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Beginning of period | 283,885 | |
Additions to capitalized exploration | 23,943 | 143,431 |
End of period | 290,650 | 283,885 |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | 290,650 | 283,885 |
U.S. Gulf of Mexico | Capitalized interest | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Beginning of period | 10,894 | |
Additions to capitalized exploration | 3,544 | 6,965 |
End of period | 14,438 | 10,894 |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | 14,438 | 10,894 |
West Africa | Exploration well costs | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Beginning of period | 835,171 | |
Additions to capitalized exploration | 96,739 | 379,461 |
End of period | 930,573 | 835,171 |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | 930,573 | 835,171 |
West Africa | Capitalized interest | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Beginning of period | 56,514 | |
Additions to capitalized exploration | 13,697 | 44,243 |
End of period | 71,548 | 56,514 |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | $71,548 | $56,514 |
Other_Assets_Details
Other Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 17, 2012 | 13-May-14 |
Other Assets | |||||
Debt issue cost | $35,822 | $36,708 | |||
Long-term portion of prepaid shorebase leases | 1,909 | 2,244 | |||
Rig costs | 25,959 | 14,984 | |||
Other assets | 63,690 | 53,936 | |||
2.625% convertible senior notes due 2019 | |||||
Other Assets | |||||
Debt issue cost | 18,500 | ||||
Interest rate (as a percent) | 2.63% | 2.63% | 2.63% | 2.63% | |
3.125% convertible senior notes due 2024 | |||||
Other Assets | |||||
Debt issue cost | $18,200 | ||||
Interest rate (as a percent) | 3.13% | 3.13% | 3.13% |
Longterm_Debt_Details
Long-term Debt (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | |
Dec. 17, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | 13-May-14 | |
item | |||||
Carrying amounts of the liability components | |||||
Principal Amount | $2,680,000,000 | $2,680,000,000 | |||
Unamortized discount | -730,707,000 | -751,472,000 | |||
Carrying amount of the liability components | 1,949,293,000 | 1,928,528,000 | |||
Carrying amounts of the equity components | |||||
Fair value of the notes excluding conversion feature | 2,449,000,000 | 2,408,000,000 | |||
Notes | |||||
Debt instrument | |||||
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% | ||||
Accrued interest recorded | 27,000,000 | ||||
Capitalized interest costs | 20,000,000 | 10,600,000 | |||
Debt issue cost allocated to the liability component | 234,000,000 | 264,300,000 | |||
Carrying amounts of the equity components | |||||
Debt discount relating to value of conversion option | 866,340,000 | 866,340,000 | |||
Debt issue costs | -20,185,000 | -20,185,000 | |||
Total | 846,155,000 | 846,155,000 | |||
2.625% convertible senior notes due 2019 | |||||
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% | |
Initial conversion rate of common stock | 28.023 | ||||
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 | 38,700,000 | ||||
Effective interest rate used to amortize liability component of debt issue costs (as a percent) | 8.40% | ||||
Carrying amounts of the liability components | |||||
Principal Amount | 1,380,000,000 | 1,380,000,000 | |||
Unamortized discount | -282,764,000 | -295,509,000 | |||
Carrying amount of the liability components | 1,097,236,000 | 1,084,491,000 | |||
Remaining term of debt | 4 years 9 months | ||||
Carrying amounts of the equity components | |||||
Fair value of the notes excluding conversion feature | 1,363,000,000 | 1,361,000,000 | |||
3.125% convertible senior notes due 2024 | |||||
Debt instrument | |||||
Aggregate principal amount of notes issued | 1,300,000,000 | ||||
Interest rate (as a percent) | 3.13% | 3.13% | 3.13% | ||
Initial conversion rate of common stock | 43.3604 | ||||
Initial conversion price per share of common stock (in dollars per share) | $23.06 | ||||
Number of underlying shares that the holder of the debt instrument would receive upon conversion | 56,400,000 | ||||
Number of days within 30 consecutive trading days in which the closing price of the entity's common stock must exceed the conversion price for the notes to be redeemable | 20 | ||||
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 days in order for the notes to be redeemable | 30 days | ||||
Minimum sale price of common stock to determine eligibility of conversion | $30 | ||||
Number of business days after any five consecutive trading day period during the note measurement period | 5 days | ||||
Number of consecutive trading days before five consecutive business days during the note measurement period | 5 days | ||||
Convertibility of debt, trading price of debt test, percentage of closing price of stock used in calculation | 98.00% | ||||
Effective interest rate used to amortize liability component of debt issue costs (as a percent) | 8.97% | ||||
Carrying amounts of the liability components | |||||
Principal Amount | 1,300,000,000 | 1,300,000,000 | |||
Unamortized discount | -447,943,000 | -455,963,000 | |||
Carrying amount of the liability components | 852,057,000 | 844,037,000 | |||
Remaining term of debt | 9 years 3 months | ||||
Carrying amounts of the equity components | |||||
Fair value of the notes excluding conversion feature | $1,086,000,000 | $1,047,000,000 |
Contractual_Obligations_Detail
Contractual Obligations (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Contractual obligations | ||
Short-term Contractual Obligations: Social obligation payments | $107,994 | $50,285 |
Long-term Contractual Obligations: Social obligation payments | 1,381 | 101,945 |
Block 9, offshore Angola | ||
Contractual obligations | ||
Short-term Contractual Obligations: Social obligation payments | 21,875 | 560 |
Long-term Contractual Obligations: Social obligation payments | 21,875 | |
Block 21, offshore Angola | ||
Contractual obligations | ||
Short-term Contractual Obligations: Social obligation payments | 409 | 1,156 |
Long-term Contractual Obligations: Social obligation payments | 1,381 | 74 |
Block 20, offshore Angola | ||
Contractual obligations | ||
Short-term Contractual Obligations: Social obligation payments | 85,710 | 48,569 |
Long-term Contractual Obligations: Social obligation payments | $79,996 |
Seismic_and_Exploration_Expens2
Seismic and Exploration Expenses (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Seismic and Exploration Expenses | ||
Seismic costs | $12,205 | $3,349 |
Leasehold delay rentals | 1,391 | 1,291 |
Drilling rig and other exploration expense | 4,173 | 4,336 |
Total seismic and exploration expenses | $17,769 | $8,976 |
Equity_Based_Compensation_Deta
Equity Based Compensation (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Feb. 20, 2015 | |
Number of Stock Options | |||
Equity based compensation expense, net of forfeitures recognized | $5,843,000 | $8,257,000 | |
Restricted Stock | |||
Restricted Shares | |||
Granted (in shares) | 3,169,028 | ||
Restricted Stock | Three senior officers | |||
Restricted Shares | |||
Granted (in shares) | 379,746 | ||
Retainer awards | Non-employee directors | Common Stock | |||
Restricted Shares | |||
Awards granted (in shares) | 12,021 | ||
Non-Qualified Stock Options | |||
Number of Stock Options | |||
Granted (in shares) | 746,268 | ||
Non-Qualified Stock Options | Three senior officers | |||
Number of Stock Options | |||
Granted (in shares) | 746,268 | ||
Stock appreciation rights ("SARs") | Long Term Incentive Plan (the "Plan") | |||
Number of Stock Options | |||
Total shares issues | 1,526,835 | ||
Market price at the time of issuance | $8.87 | ||
vesting percentage | 33.00% | ||
Vesting period | 3 years | ||
Fair value of share ( in dollars per share) | $4.80 | $4.53 | |
Aggregate fair value | 300,000 | ||
Stock compensation expense | $300,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segment | ||
Segment Information | ||
Number of geographic operating segments | 2 | |
Segment Information | ||
Operating costs and expense | $63,257 | $47,293 |
Operating income (loss) | -63,257 | -47,293 |
Other income (expense) | -18,360 | -9,622 |
Net income (loss) | -81,617 | -56,915 |
Additions to Property and Equipment, net | 473,117 | 144,264 |
United States | ||
Segment Information | ||
Operating costs and expense | 51,741 | 31,027 |
Operating income (loss) | -51,741 | -31,027 |
Additions to Property and Equipment, net | 164,343 | 21,376 |
West Africa | ||
Segment Information | ||
Operating costs and expense | 11,516 | 16,266 |
Operating income (loss) | -11,516 | -16,266 |
Additions to Property and Equipment, net | $308,774 | $122,888 |