Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Document and Entity Information | |
Entity Registrant Name | Cobalt International Energy, Inc. |
Entity Central Index Key | 1,471,261 |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 414,533,629 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 100,447 | $ 246,704 |
Restricted cash and cash equivalents | 252,950 | |
Joint interest and other receivables | 91,666 | 13,575 |
Prepaid expenses and other current assets | 51,549 | 3,842 |
Inventory | 21,718 | 35,093 |
Short-term investments | 1,235,350 | 1,530,206 |
Current assets held for sale | 1,736,559 | 173,714 |
Total current assets | 3,490,239 | 2,003,134 |
Property, plant, and equipment: | ||
Oil and gas properties, successful efforts method of accounting, net of accumulated depletion of $-0- | 1,051,373 | 711,238 |
Other property and equipment, net of accumulated depreciation and amortization of $6,639 and $5,245, as of September 30, 2015 and December 31, 2014, respectively | 2,480 | 3,416 |
Total property, plant, and equipment, net | 1,053,853 | 714,654 |
Long-term investments | 326,047 | |
Deferred income taxes | 32,299 | 30,334 |
Other assets | 62,045 | 49,032 |
Long-term assets held for sale | 1,327,661 | |
Total assets | 4,638,436 | 4,450,862 |
Current liabilities: | ||
Trade and other accounts payable | 70 | |
Accrued liabilities | 191,748 | 98,016 |
Deferred Angola sales proceeds | 250,000 | |
Deferred income taxes | 32,299 | 30,334 |
Current liabilities held for sale | 240,383 | 175,180 |
Total current liabilities | 714,430 | 303,600 |
Long-term debt | 1,992,499 | 1,928,528 |
Asset retirement obligations | 3,069 | |
Other long-term liabilities | 2,049 | 2,172 |
Long-term liabilities held for sale | 102,296 | |
Total long-term liabilities | 1,997,617 | 2,032,996 |
Stockholders' Equity: | ||
Common stock, $0.01 par value per share; 2,000,000,000 shares authorized, 408,558,174 and 408,505,079 issued and outstanding as of September 30, 2015 and December 31, 2014, respectively | 4,085 | 4,085 |
Additional paid-in capital | 4,157,498 | 4,137,803 |
Accumulated deficit | (2,235,194) | (2,027,622) |
Total stockholders' equity | 1,926,389 | 2,114,266 |
Total liabilities and stockholders' equity | $ 4,638,436 | $ 4,450,862 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
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) | $ 6,369 | $ 5,245 |
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 | 408,558,174 | 408,505,079 |
Common stock, shares outstanding | 408,558,174 | 408,505,079 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating costs and expenses: | ||||
Seismic and exploration | $ 10,392 | $ 9,870 | $ 35,726 | $ 18,180 |
Dry hole expense and impairment | 10,880 | 17,410 | 38,310 | 71,034 |
General and administrative | 14,848 | 17,818 | 53,015 | 38,016 |
Depreciation and amortization | 346 | 410 | 1,125 | 1,277 |
Total operating costs and expenses | 36,466 | 45,508 | 128,176 | 128,507 |
Operating income (loss) | (36,466) | (45,508) | (128,176) | (128,507) |
Other income (expense): | ||||
Gain on sale of assets | 7 | 2,632 | ||
Interest income | 1,475 | 1,895 | 4,588 | 4,274 |
Interest expense | (14,703) | (23,463) | (52,565) | (52,630) |
Total other income (expense) | (13,221) | (21,568) | (45,345) | (48,356) |
Net income (loss) from continuing operations before income tax | (49,687) | (67,076) | (173,521) | (176,863) |
Net income (loss) from continuing operations | (49,687) | (67,076) | (173,521) | (176,863) |
Net income (loss) from discontinued operations, net of income tax | (9,477) | (75,453) | (34,051) | (117,336) |
Net income (loss) | $ (59,164) | $ (142,529) | $ (207,572) | $ (294,199) |
Basic and diluted income (loss) per share from continuing operations (in dollars per share) | $ (0.12) | $ (0.16) | $ (0.42) | $ (0.43) |
Basic and diluted income (loss) per share from discontinued operations (in dollars per share) | (0.02) | (0.19) | (0.08) | (0.29) |
Basic and diluted income (loss) per share (in dollars per share) | $ (0.14) | $ (0.35) | $ (0.50) | $ (0.72) |
Basic and diluted weighted average common shares outstanding (in shares) | 408,545,467 | 407,095,514 | 408,525,438 | 407,058,930 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Changes in Stockholders? Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2014 | $ 4,085 | $ 4,137,803 | $ (2,027,622) | $ 2,114,266 |
Equity based compensation | 19,695 | 19,695 | ||
Net income (loss) | (207,572) | (207,572) | ||
Balance at Sep. 30, 2015 | $ 4,085 | $ 4,157,498 | $ (2,235,194) | $ 1,926,389 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows provided from operating activities | ||
Net income (loss) | $ (207,572) | $ (294,199) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 1,125 | 1,277 |
Gain on sale of assets | (2,632) | |
Loss from discontinued operations | 34,051 | 117,336 |
Dry hole expense and impairment of unproved properties | 38,310 | 71,034 |
Equity based compensation | 19,695 | 23,102 |
Amortization of premium (accretion of discount) on investments | 11,984 | 14,506 |
Amortization of debt discount and debt issuance costs | 66,977 | 49,944 |
Changes in operating assets and liabilities: | ||
Joint interest and other receivables | (77,217) | 44,522 |
Inventory | 13,257 | (6,025) |
Prepaid expense and other current assets | (47,706) | 36,385 |
Deferred charges and other | (11,994) | 15,188 |
Trade and other accounts payable | (70) | (19,770) |
Accrued liabilities and other | (55,666) | (54,116) |
Net cash provided by (used in) operating activities ? continuing operations | (217,458) | (816) |
Net cash provided by (used in) operating activities ? discontinued operations | (11,685) | (139,020) |
Net cash provided by (used in) operating activities | (229,143) | (139,836) |
Cash flows from investing activities | ||
Capital expenditures for oil and gas properties | (35,190) | (27,784) |
Capital expenditures for other property and equipment | (188) | (407) |
Exploratory wells drilling in process | (188,160) | (95,696) |
Change in restricted funds | (48,999) | (112,434) |
Proceeds from maturity of investment securities | 1,396,756 | 1,293,659 |
Purchase of investment securities | (742,666) | (1,936,269) |
Net cash provided by (used in) investing activities ? continuing operations | 381,553 | (878,931) |
Net cash provided by (used in) investing activities ? discontinued operations | (294,642) | (260,641) |
Net cash provided by (used in) investing activities | 86,911 | (1,139,572) |
Cash flows from financing activities | ||
Proceeds from debt offering, net of costs | 1,269,778 | |
Payment of debt issuance costs | (4,025) | |
Proceeds from stock option exercises | 33 | |
Payments for common stock withheld for taxes on equity based compensation | (631) | |
Net cash provided by (used in) financing activities | (4,025) | 1,269,180 |
Net increase (decrease) in cash and cash equivalents | (146,257) | (10,228) |
Cash and cash equivalents, beginning of period | 246,704 | 165,663 |
Cash and cash equivalents, end of period | 100,447 | 155,435 |
Cash paid for interest | 39,065 | 18,113 |
Non-cash disclosures | ||
Changes in accrued capital expenditures | (117,875) | (43,907) |
Transfer of investment securities from restricted funds | $ 46,049 | |
Transfer of investment securities to restricted funds | $ (155,105) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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. On August 22, 2015, Cobalt International Energy Angola Ltd., a wholly-owned subsidiary of the Company, executed a purchase and sale agreement with Sociedade Nacional de Combustíveis de Angola—Empresa Pública ("Sonangol") for the sale by the Company to Sonangol of the entire issued and outstanding share capital of its indirect wholly-owned subsidiaries CIE Angola Block 20 Ltd. and CIE Angola Block 21 Ltd., which respectively hold the Company's 40% working interest in each of Block 20 and Block 21 offshore Angola (the "Angola Transaction"). The Angola Transaction is subject to Angolan government approvals. Following the transfer of the share capital of CIE Angola Block 20 Ltd. and CIE Angola Block 21 Ltd., the Company will also relinquish its working interest in Block 9 offshore Angola to Sonangol. The Company's working interests in Blocks 9, 20, and 21 offshore Angola have been classified as "held for sale" on the consolidated balance sheet. The results of operations associated with Blocks 9, 20 and 21 offshore Angola have been presented as discontinued operations in the accompanying consolidated statement of operations. Historically, the Company's Angolan subsidiaries constituted a significant portion of its West Africa segment. The Company's operations in Gabon, which are deemed immaterial, have been combined with its United States segment and are reported as one segment. 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 835-30 for the financial statements at its effective date beginning after December 15, 2015. We do not expect the adoption of ASC 835-30 to have a material impact on the Company's financial statements. 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 cost, which approximates fair market value as of September 30, 2015 and December 31, 2014 and are classified as held-to-maturity 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. Income related to these securities is reported as a component of interest income in the Company's condensed consolidated statement of operations. See Note 5—Investments . Investments are considered to be impaired when a decline in fair value is determined to be other-than-temporary. The Company conducts a regular assessment of its debt securities with unrealized losses to determine whether securities have other-than-temporary impairment ("OTTI"). This assessment considers, among other factors, the nature of the securities, credit rating or financial condition of the issuer, the extent and duration of the unrealized loss, market conditions and whether the Company intends to sell or whether it is more likely than not that the Company will be required to sell the debt securities. As of September 30, 2015 and December 31, 2014, the Company has no OTTI in its debt securities. Asset Retirement Obligation The Company expects to have significant obligations under its lease agreements and federal regulation to remove its equipment and restore land or seabed at the end of oil and natural gas production operations. These asset retirement obligations ("ARO") are primarily associated with plugging and abandoning wells and removing and disposing of offshore oil and natural gas platforms. Estimating the future restoration and removal cost is difficult and requires the Company to make estimates and judgments because most of the removal obligations are many years in the future and contracts and regulation often have vague descriptions of what constitutes removal. Asset removal technologies and cost are constantly changing, as are regulatory, political, environmental, safety and public relations considerations. Pursuant to the accounting guidance relating to " Assets Retirement Obligations ", the Company is required to record a separate liability for the discounted present value of its asset retirement obligations, with an offsetting increase to the related oil and natural gas properties representing asset retirement costs on the balance sheet. The cost of the related oil and natural gas asset, including the asset retirement cost, is depreciated over the useful life of the asset. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at the Company's credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Inherent to the present value calculation are numerous estimates, assumptions and judgments, including the ultimate settlement amounts, inflation factors, credit adjusted risk-free rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the present value of the abandonment liability, the Company will make corresponding adjustments to both the asset retirement obligation and the related oil and natural gas property asset balance. Increases in the discounted abandonment liability resulting from the passage of time will be reflected as additional accretion expense in the consolidated statement of operations. During the quarterly period ended September 30, 2015, the Company recognized a retirement obligation for its Heidelberg field. The following summarizes the changes in the asset retirement obligation for the nine months ended September 30, 2015: September 30, 2015 ($ in thousands) Beginning of period — Liabilities incurred Accretion — End of period $ 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 includes the potential dilutive impact of non-vested restricted stock, 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 and nine months ended September 30, 2015, 9,861,834 shares of non-vested restricted stock, 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, were excluded from the diluted income (loss) per share calculation because they were anti-dilutive. For the three months and nine months ended September 30, 2014, 8,643,212 shares of non-vested restricted stock, non-vested restricted stock units, outstanding stock options and 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. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 30, 2015 | |
Cash and Cash Equivalents. | |
Cash and Cash Equivalents | 2. Cash and Cash Equivalents Cash and cash equivalents consisted of the following: September 30, 2015 December 31, 2014 ($ in thousands) Cash at banks $ $ Money market funds Held-to-maturity securities(1) $ $ (1) These securities mature three months or less from the date of purchase. |
Restricted Cash and Cash Equiva
Restricted Cash and Cash Equivalents | 9 Months Ended |
Sep. 30, 2015 | |
Restricted Cash and Cash Equivalents | |
Restricted Cash and Cash Equivalents | 3. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents consisted of the following: September 30, 2015 December 31, 2014 ($ in thousands) Angolan sale proceeds $ — American Express Bank pledge agreement — Citibank commercial card agreement — Total restricted funds(1) $ $ — (1) Pursuant to the purchase and sale agreement governing the Angola Transaction, the Company received the First Payment of $250 million during the quarterly period ended September 30, 2015. See Note 10—Angola Transaction . These funds are contractually restricted by the purchase and sale agreement pending the closing of the Angola Transaction. In addition, as of September 30, 2015, approximately $3.0 million was held in collateral accounts established to pledge funds for security of obligations under the American Express Bank Pledge Agreement and the Citibank Commercial Card Agreement. As of September 30, 2015, the Angolan sales proceeds and collateral in these accounts were invested in cash, certificates of deposit, commercial paper, and money market funds, resulting in a net carrying value of approximately $253.0 million. The contractual maturities of these securities are within ninety days. |
Joint Interest and Other Receiv
Joint Interest and Other Receivables | 9 Months Ended |
Sep. 30, 2015 | |
Joint Interest and Other Receivables | |
Joint Interest and Other Receivables | 4. Joint Interest and Other Receivables Joint interest and other receivables result primarily from billing shared costs under the respective operating agreements to the Company's partners. These are usually settled within 30 days of the invoice date. As of September 30, 2015 and December 31, 2014, the balance in joint interest and other receivables consisted of the following: September 30, 2015 December 31, 2014 ($ in thousands) Partners in the U.S. Gulf of Mexico $ $ Accrued interest on investment securities Other $ $ |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments | |
Investments | 5. Investments The Company's investments in held-to-maturity securities, which are recorded at amortized cost which approximates fair market value, were as follows as of September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 ($ in thousands) Corporate securities $ $ Commercial paper U.S. Agency securities Certificates of deposit Total $ $ The Company's condensed consolidated balance sheet included the following held-to-maturity securities: September 30, 2015 December 31, 2014 ($ in thousands) Cash and cash equivalents $ $ Short-term investments Restricted cash and cash equivalents — Long-term investments — $ $ The contractual maturities of these held-to-maturity securities as of September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 December 31, 2014 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value ($ in thousands) Within 1 year $ $ $ $ After 1 year — — $ $ $ $ |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 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 measured on a recurring basis as categorized by the fair value measurement hierarchy: Level 1 Level 2 Carrying Value Fair Value(1) Carrying Value Fair Value(1) Balance as of September 30, 2015 ($ in thousands) Cash and cash equivalents: Cash $ $ $ — $ — $ Money market funds — — Commercial paper — — Subtotal Restricted cash and cash equivalents: Money market funds — — Commercial paper — — Certificates of deposit — — Subtotal Short-term investments: U.S. Agency securities — — Corporate bonds — — Commercial paper — — Certificates of deposit — — Subtotal — — Long-term investments: Corporate bonds — — — — — Subtotal — — — — — Total $ $ $ $ $ Level 1 Level 2 Carrying Value Fair Value(1) Carrying Value Fair Value(1) Balance as of December 31, 2014 ($ in thousands) Cash and cash equivalents: Cash $ $ $ — $ — $ Money market funds — — Commercial paper — — Corporate bonds Subtotal Short-term investments: U.S. Agency securities — — Corporate bonds — — Commercial paper — — Certificates of deposit — — Subtotal — — Long-term investments: Corporate bonds — — Subtotal — — Total $ $ $ $ $ (1) As of September 30, 2015 and December 31, 2014, the Company did not record any OTTI on these assets. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 9 Months Ended |
Sep. 30, 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 Useful Life (Years) September 30, 2015 December 31, 2014 ($ in thousands) Oil and Gas Properties: Proved properties: Well and development costs $ $ Total proved properties Unproved properties: Oil and gas leasehold Less: accumulated valuation allowance ) ) Exploration wells in process Total unproved properties Total oil and gas properties, net Other Property and Equipment: Computer equipment and software 3 Office equipment and furniture 3 - 5 Leasehold improvements 3 - 10 Less: accumulated depreciation and amortization ) ) Total other property and equipment, net Property, plant, and equipment, net $ $ The Company recorded $0.3 million and $0.4 million of depreciation and amortization expense for the three months ended September 30, 2015 and 2014, respectively, and $1.1 million and $1.3 million for the nine months ended September 30, 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 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 creating a first priority lien in the Company's interest in preparation for debt instruments to fund the Heidelberg development project. As of September 30, 2015, the well and development costs consist of $129.3 million relating to exploration, appraisal and development well costs and $189.5 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 $132.1 million for costs associated with field development. Unproved Oil and Gas Properties As of September 30, 2015 and December 31, 2014, the Company has the following unproved property acquisition costs, net of valuation allowance on the consolidated balance sheets: September 30, 2015 December 31, 2014 ($ in thousands) Individual oil and gas leaseholds with carrying value greater than $1 million $ $ Individual oil and gas leaseholds with carrying value less than $1 million Accumulated valuation allowance ) ) Total oil and gas leasehold Capitalized Exploration Well Costs If an exploration well provides evidence as to the existence of sufficient quantities of hydrocarbons to justify evaluation for potential development, drilling costs associated with the well are initially capitalized, or suspended, pending a determination as to whether a commercially sufficient quantity of proved reserves can be attributed to the area as a result of drilling. This determination may take longer than one year in certain areas (generally, deepwater and international locations) depending upon, among other things, (i) the amount of hydrocarbons discovered, (ii) the outcome of planned geological and engineering studies, (iii) the need for additional appraisal drilling activities to determine whether the discovery is sufficient to support an economic development plan and (iv) the requirement for government sanctioning in international locations before proceeding with development activities. The following tables reflect the Company's net changes in and the cumulative costs of capitalized exploration well costs (excluding any related leasehold costs): September 30, 2015 December 31, 2014 ($ in thousands) Beginning of period $ $ Additions to capitalized exploration Exploration well costs Capitalized interest Reclassifications to wells, facilities, and equipment based on determination of proved reserves — — Amounts charged to expense(1) ) ) End of period $ $ (1) The amount of $29.5 million charged to expense for the nine months ended September 30, 2015 primarily represents impairment charges of approximately $22.3 million related to the North Platte #2 appraisal well and impairment charges of approximately $6.6 million related to the lowest portion of the Shenandoah #4 appraisal well. The North Platte #2 appraisal well was plugged and abandoned due to a seal failure in the riser connection system. The well was at a depth of 20,701 feet when the problem with the riser was detected. The Company is continuing to assess what additional impairment charges or other liabilities, including any environmental liabilities, might be incurred in future periods related to the North Platte #2 appraisal well. September 30, 2015 December 31, 2014 ($ in thousands) Cumulative costs: Exploration well costs $ $ Capitalized interest $ $ Well costs capitalized for a period greater than one year after completion of drilling (included in table above) $ $ As of September 30, 2015, capitalized exploration well costs that have been suspended longer than one year are associated with the Company's Shenandoah, North Platte, 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 | 9 Months Ended |
Sep. 30, 2015 | |
Other Assets | |
Other Assets | 8. Other Assets As of September 30, 2015 and December 31, 2014, the balance in other assets consisted of the following: September 30, 2015 December 31, 2014 (in thousands) Debt issue cost(1) $ $ Rig costs(2) $ $ (1) As of September 30, 2015, the $37.7 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 and the Borrowing Base Facility Agreement, 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. (2) As of September 30, 2015 and December 31, 2014, the $24.3 million and $12.3 million, respectively, relate to costs associated with the Rowan Reliance drilling rig which is currently drilling in U.S. Gulf of Mexico. These costs are capitalized to the wells over the term of the respective drilling rig contracts. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Long-term Debt | |
Long-term Debt | 9. Long-term Debt As of September 30, 2015, the Company's long-term debt consists of the Borrowing Base Facility Agreement (the "Facility Agreement") entered into on May 29, 2015, 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: Borrowing Base Facility Agreement On May 29, 2015, Cobalt GOM #1 LLC ("GOM#1"), an indirect, wholly-owned subsidiary of the Company entered into a Borrowing Base Facility Agreement (the "Facility Agreement") with Société Générale, as administrative agent, and certain other lenders. GOM#1 is the direct owner of the oil and gas leases, wells, production facilities and other assets and agreements associated with the Company's Heidelberg development. GOM#1 does not own any of the Company's other oil and gas assets. The Facility Agreement provides for a limited recourse $150 million senior secured reserve-based term loan facility. The proceeds of the loans under the Facility Agreement will be available to fund the majority of GOM#1's share of the remaining Heidelberg field development costs, subject to the maintenance of a debt to equity ratio of the total investment in the Heidelberg development of no more than 70:30. GOM#1 may request that the commitments under the Facility Agreement be increased by up to an additional $100 million upon the satisfaction of certain conditions set forth in the Facility Agreement, and such increase is subject to lender participation. In addition, GOM#1 may request a further commitment increase by up to $400 million if GOM#1's interest in the Heidelberg field is increased, with such commitment increase subject to lender participation. The Company is a party to the Facility Agreement and has limited funding obligations thereunder. Until completion of the Heidelberg development in accordance with the current field development plan and certain other requirements set forth in the Facility Agreement ("Completion"), the Company has guaranteed to fund cost overruns that may be incurred up to an aggregate of $38.7 million. The Company agreed to cash collateralize 50% of its funding obligation in respect of cost overruns by depositing $19.4 million in a collateral account to be established pursuant to the terms of the Facility Agreement. As of September 30, 2015 this amount has not been funded. The amount available for borrowing at any one time under the Facility Agreement is limited to a borrowing base amount determined twice a year using agreed projections by applying the lower of (i) a project life coverage ratio of 1.5:1.0 to the sum of discounted projected net revenues from the Heidelberg field and certain capital expenditures and (ii) a loan life coverage ratio of 1.3:1.0 to the sum of discounted projected net revenues from the Heidelberg field and certain capital expenditures. Interim borrowing base redeterminations can take place between scheduled redetermination dates in limited circumstances specified in the Facility Agreement. Loans made under the Facility Agreement are scheduled to amortize in the manner set forth in the Facility Agreement commencing in July 2018 and will mature on the earlier of (a) May 29, 2020 and (b) the last day of the quarter immediately preceding the first quarter in which the aggregate remaining reserves for the Heidelberg field are projected to be less than 20% of the initial approved reserves. In addition, on or before each redetermination, GOM#1 is required to repay such amount of the loans as is required to reduce the aggregate amount of the loans to the borrowing base amount applicable on the day after such redetermination. After Completion, loans are also subject to mandatory prepayment with 33% of GOM#1's excess cash flow. The Facility Agreement and certain related hedging obligations, if any, are secured by a first priority security interest in substantially all of the assets of GOM#1 (which are comprised only of the oil and gas leases, wells, production facilities and other assets associated with the Heidelberg development), including a mortgage on GOM#1's ownership interest in the Heidelberg field, a pledge of the equity interests of GOM#1 and a pledge of certain intercompany receivables held by the Company. All of GOM#1's revenues from the Heidelberg development will be deposited in collateral accounts established pursuant to the Facility Agreement and applied in accordance with a cash waterfall in the manner specified in the Facility Agreement. GOM#1 is required to maintain a debt service reserve account for the benefit of the lenders under the Facility Agreement, which must remain funded at all times to the level specified in the Facility Agreement. At GOM#1's election, interest for borrowings under the Facility Agreement are determined by reference to (a) the London interbank offered rate, or LIBOR, plus an applicable margin of (i) 6.00% per annum prior to Completion and (ii) 4.00% following Completion or (b) a base rate plus an applicable margin of (i) 5.00% prior to Completion and (ii) 3.00% following Completion. Prior to Completion, GOM#1 is also required to pay a commitment fee equal to 40% of the applicable margin payable on the unused commitments under the Facility Agreement. Interest on base rate loans and the commitment fee are generally payable quarterly. Interest on LIBOR loans are generally payable at the end of the applicable interest period but no less frequently than quarterly. The Facility Agreement contains various covenants that limit, among other things, GOM#1's ability to incur indebtedness, grant liens on its assets, merge or consolidate with other entities, sell its assets, make loans, acquisitions, capital expenditures and other investments, abandon or decommission the Heidelberg field, modify material agreements relating thereto, enter into commodity hedges and pay dividends and distributions to its parent entities. The Facility Agreement includes customary events of default for transactions of this type, including events of default relating to non-payment of principal, interest or fees, inaccuracy of representations and warranties, violation of covenants, cross-defaults, bankruptcy and insolvency events, certain unsatisfied judgments, loan documents not being valid, defaults under project documents that are not replaced, change in control, expropriation, abandonment or decommissioning of the Heidelberg field, material title defects, the failure to pay cost overruns when due and the failure to reach Completion on or before May 29, 2018. In addition, the Facility Agreement provides that an event of default will occur if (a) the debt to equity ratio exceeds 70:30 or (b) the then current projections show that (i) the project loan life coverage ratio in any calculation period will be 1.5:1.0 or less, (ii) the loan life coverage ratio in any calculation period will be 1.3:1.0 or less or (iii) the debt service coverage ratio in any calculation period will be 1.2:1.0 or less. If an event of default occurs, the lenders will be able to accelerate the maturity of the Facility Agreement and exercise other rights and remedies. As of September 30, 2015, the Company has not borrowed any amounts under the Facility Agreement. 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 September 30, 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: September 30, 2015 December 31, 2014 Principal Amount Unamortized discount(1) Carrying Amount Principal Amount Unamortized discount Carrying Amount ($ in thousands) Carrying amount of liability component 2.625% Notes $ $ ) $ $ $ ) $ 3.125% Notes ) ) Total $ $ ) $ $ $ ) $ (1) Unamortized discount will be amortized over the remaining life of the Notes which is 4.25 years for the 2.625% Notes and 8.75 years for the 3.125% Notes. The carrying amounts of the equity components of the Notes were as follows: September 30, 2015 December 31, 2014 ($ in thousands) Debt discount relating to value of conversion option $ $ Debt issue costs ) ) Total $ $ 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. As of September 30, 2015 and December 31, 2014, the fair values of the Notes were as follows: September 30, 2015 December 31, 2014 ($ in thousands) 2.625% Notes $ $ 3.125% Notes Total $ $ As of September 30, 2015, the Company had $27.3 million accrued for interest on the Notes and commitment fees associated with the Facility Agreement. For the three months ended September 30, 2015 and 2014, the interest expense, net of capitalized amount, relating to the Notes and certain costs and commitment fees associated with the Facility Agreement was $14.7 million and $23.5 million, respectively. For the nine months ended September 30, 2015 and 2014, the interest expense, net of capitalized amount, relating to the Notes was $52.6 million and $52.6 million, respectively. As of September 30, 2015 and December 31, 2014, the debt discounts associated with the 2.625% Notes and the 3.125% Notes resulted in the recognition of $241.8 million and $264.3 million of deferred tax liability, respectively. The Company is in an overall net deferred tax asset 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. |
Angola Transaction
Angola Transaction | 9 Months Ended |
Sep. 30, 2015 | |
Angola Transaction | |
Angola Transaction | 10. Angola Transaction On August 22, 2015, Cobalt International Energy Angola Ltd. ("Cobalt Angola"), a wholly-owned subsidiary of the Company, executed a purchase and sale agreement (the "Purchase and Sale Agreement") with Sonangol for the sale by Cobalt Angola to Sonangol of the entire issued and outstanding share capital of CIE Angola Block 20 Ltd. and CIE Angola Block 21 Ltd., which respectively hold the Company's 40% working interest in each of Block 20 and Block 21 offshore Angola for aggregate gross consideration of $1.75 billion before Angolan withholding taxes of approximately $19.7 million (to be netted out of the gross consideration to be paid to Cobalt Angola) and certain other U.S. and Angolan taxes, expenses, and contingent liabilities. Sonangol Pesquisa e Produção, S.A., an affiliate of Sonangol, currently holds a 30% working interest in Block 20 and a 60% working interest in Block 21. The Angola Transaction is subject to Angolan government approvals. The Purchase and Sale Agreement provides for the payment of the net consideration by Sonangol to Cobalt Angola of (i) $250 million within 7 days following the execution of the Purchase and Sale Agreement (the "First Payment"), (ii) approximately $1.28 billion within 15 days following the receipt of the Angolan government approvals (the "Second Payment"), and (iii) $200 million within the earlier of 30 days following the execution of a transfer of operations agreement, which will contain terms and conditions governing the transition of operations on each of Block 20 and Block 21 from the Company to a new operator, or one year from the execution of the Purchase and Sale Agreement (the "Third Payment"). The Purchase and Sale Agreement further provides that within 15 days following the receipt of the Angolan government approvals, Sonangol shall reimburse Cobalt Angola for its share of costs attributable to Block 20 and Block 21 for the period from January 1, 2015 through the date upon which Cobalt Angola receives the Angolan government approvals (the "Reimbursement Amount"). The Company estimates that its share of costs attributable to Block 20 and Block 21 for the period from January 1, 2015 through September 30, 2015 is approximately $307 million, which excludes (i) a cash collateralized letter of credit of approximately $82.5 million related to Block 20 that will be released following the consummation of the Angola Transaction, and (ii) outstanding joint interest and other receivables attributable to Block 20 and Block 21 of approximately $57.9 million. The obligation of Cobalt Angola to transfer the share capital of CIE Angola Block 20 Ltd. and CIE Angola Block 21 Ltd. to Sonangol and consummate the Angola Transaction is subject to the receipt by Cobalt Angola of the First Payment, the Second Payment and the Reimbursement Amount. Following completion of the transfer of the shares of CIE Angola Block 20 Ltd. and CIE Angola Block 21 Ltd., the Company shall relinquish its interest in Block 9 offshore Angola to Sonangol. If the Angolan government approvals are not received within one year from the execution date of the Purchase and Sale Agreement, the Purchase and Sale Agreement will automatically terminate and any obligations executed by the parties thereto shall be restituted in order to put such parties in their original positions as if no agreement had been executed. As a result, the First Payment has been reported as restricted cash on the balance sheet. Pursuant to the Purchase and Sale Agreement, the Company is required to provide certain transition services to Sonangol, which may include continuing to support operations on Block 20 and 21 on a no-profit no-loss basis until Sonangol nominates a new operator or operators of such blocks, despite the fact that the Company may have already transferred the share capital of its subsidiaries holding its working interests in Blocks 20 and 21 to Sonangol. The Company received the First Payment during the quarterly period ended September 30, 2015. The Angola Transaction is currently pending Angola government approval, and the Company therefore has not received the Second Payment, Third Payment or Reimbursement Amount. Royalty Agreement On February 13, 2009 the Company entered into a restated overriding royalty agreement (the "Royalty Agreement") with Whitton Petroleum Services Limited ("Whitton"). Pursuant to the terms of the Royalty Agreement, in consideration for Whitton's consulting services in connection with Blocks 9, 20 and 21 offshore Angola and the Company's business and operations in Angola, Whitton is to receive quarterly payments (measured in U.S. Dollars) equal to 2.5% of the market price of the Company's share of the crude oil produced in such quarter and not used in petroleum operations, less the cost recovery crude oil, assuming the applicable government contract is a production sharing agreement. If the applicable government contract is a risk services agreement and not a production sharing agreement (which is the case with respect to Blocks 9 and 21), pursuant to the Royalty Agreement the Company has undertaken to agree with Whitton an economic model (the "RSA Economic Model") containing terms equivalent to those in such risk services agreement and using actual production and costs. The RSA Economic Model has not yet been agreed with Whitton. Should the Company assign all of its interest in such Blocks, Whitton may, depending on the option the Company elects, have the right to receive the market value of its rights and obligations under the Royalty Agreement, based upon the amount in cash a willing transferee of such rights and obligations would pay a willing transferor in an arm's length transaction. Given potential issues regarding how such market value of Whitton's rights and obligations under the Royalty Agreement could be calculated, including, without limitation, outstanding issues related to the RSA Economic Model, the amount of any such payment that could be owed to Whitton upon completion of the Angola Transaction is uncertain, but may be material. The Company's working interests in Blocks 9, 20, and 21 offshore Angola have been classified as "held for sale" on the consolidated balance sheet. The results of operations associated with Blocks 9, 20 and 21 offshore Angola have been presented as discontinued operations in the accompanying consolidated statement of operations. Historically, the Company's Angolan subsidiaries constituted a significant portion of its West Africa segment. The Company's operations in Gabon have been combined with its United States segment and are reported as one segment. The following table summarizes the assets and liabilities associated with Blocks 9, 20, and 21 offshore Angola: September 30, 2015 December 31, 2014(1) ($ in thousands) Cash and cash equivalents $ $ Joint interest and other receivables Prepaid expenses and other current assets Inventory Short term restricted funds Oil and gas properties Other property and equipment, net Long term restricted funds Other assets Total assets of the discontinued operation Trade and other accounts payable ) ) Accrued liabilities ) ) Short term contractual obligations ) ) Long term contractual obligations ) ) Other long term liabilities — ) Total liabilities of the discontinued operation $ ) $ ) (1) Amounts in the comparative period are broken out between current and long-term on the consolidated balance sheet. Results for Blocks 9, 20, and 21 offshore Angola classified within discontinued operations consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Seismic and exploration $ $ $ $ Dry hole expense and impairment General and administrative Depreciation and amortization $ $ $ $ |
Seismic and Exploration Expense
Seismic and Exploration Expenses | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Seismic costs $ $ $ $ Leasehold delay rentals Other exploration expense $ $ $ $ |
Equity Based Compensation
Equity Based Compensation | 9 Months Ended |
Sep. 30, 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, 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, which are amortized on a straight-line basis over a weighted average period. During the nine months ended September 30, 2015, the Company granted a total of 3,503,948 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 nine months ended September 30, 2015, the Company granted 35,814 shares of common stock as retainer awards and 105,846 restricted stock units to its non-employee directors. The Company recorded equity based compensation expense, net of forfeitures, of $6.5 million and $7.8 million for the three months ended September 30, 2015 and 2014, respectively, and $19.7 million and $23.1 million for the nine months ended September 30, 2015 and 2014, respectively. On February 20, 2015, the Company issued a total of 1,526,835 share appreciation rights ("SARs") under the Company's Long Term Incentive Plan (the "Plan") to the Company's officers, based on the common stock 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 share. 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 September 30, 2015, the fair value of each SAR decreased to $3.52, resulting in a reduction of the fair value of $0.8 million. For the three months and nine months ended September 30, 2015, the Company recognized $0.2 and $1.0 million, respectively, in compensation expense relating to the SAR awards. On April 30, 2015, the Company's stockholders approved the Company's 2015 Long Term Incentive Plan (the "2015 Plan"). The total number of shares of the Company's common stock available for issuance under the 2015 Plan is 12,000,000. The 2015 Plan provides for grants of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based awards. As of September 30, 2015, the Company has awarded 150,000 shares under the 2015 Plan. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Contingencies | |
Contingencies | 13. 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 | 9 Months Ended |
Sep. 30, 2015 | |
Other Matters | |
Other Matters | 14. Other Matters As previously disclosed, in November 2011 a formal order of investigation was issued by the SEC related to the Company's operations in Angola. In August 2014, the Company received a Wells Notice from the SEC related to this investigation. In January 2015, the Company received a termination letter from the SEC advising 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. The Company continues to cooperate with the Department of Justice ("DOJ") with regard to its ongoing parallel investigation. The Company is unable to predict the outcome of the DOJ's ongoing investigation or any action that the DOJ may decide to pursue. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 835-30 for the financial statements at its effective date beginning after December 15, 2015. We do not expect the adoption of ASC 835-30 to have a material impact on the Company's financial statements. |
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 cost, which approximates fair market value as of September 30, 2015 and December 31, 2014 and are classified as held-to-maturity 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. Income related to these securities is reported as a component of interest income in the Company's condensed consolidated statement of operations. See Note 5—Investments . Investments are considered to be impaired when a decline in fair value is determined to be other-than-temporary. The Company conducts a regular assessment of its debt securities with unrealized losses to determine whether securities have other-than-temporary impairment ("OTTI"). This assessment considers, among other factors, the nature of the securities, credit rating or financial condition of the issuer, the extent and duration of the unrealized loss, market conditions and whether the Company intends to sell or whether it is more likely than not that the Company will be required to sell the debt securities. As of September 30, 2015 and December 31, 2014, the Company has no OTTI in its debt securities. |
Asset Retirement Obligation | Asset Retirement Obligation The Company expects to have significant obligations under its lease agreements and federal regulation to remove its equipment and restore land or seabed at the end of oil and natural gas production operations. These asset retirement obligations ("ARO") are primarily associated with plugging and abandoning wells and removing and disposing of offshore oil and natural gas platforms. Estimating the future restoration and removal cost is difficult and requires the Company to make estimates and judgments because most of the removal obligations are many years in the future and contracts and regulation often have vague descriptions of what constitutes removal. Asset removal technologies and cost are constantly changing, as are regulatory, political, environmental, safety and public relations considerations. Pursuant to the accounting guidance relating to " Assets Retirement Obligations ", the Company is required to record a separate liability for the discounted present value of its asset retirement obligations, with an offsetting increase to the related oil and natural gas properties representing asset retirement costs on the balance sheet. The cost of the related oil and natural gas asset, including the asset retirement cost, is depreciated over the useful life of the asset. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at the Company's credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Inherent to the present value calculation are numerous estimates, assumptions and judgments, including the ultimate settlement amounts, inflation factors, credit adjusted risk-free rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the present value of the abandonment liability, the Company will make corresponding adjustments to both the asset retirement obligation and the related oil and natural gas property asset balance. Increases in the discounted abandonment liability resulting from the passage of time will be reflected as additional accretion expense in the consolidated statement of operations. During the quarterly period ended September 30, 2015, the Company recognized a retirement obligation for its Heidelberg field. The following summarizes the changes in the asset retirement obligation for the nine months ended September 30, 2015: September 30, 2015 ($ in thousands) Beginning of period — Liabilities incurred Accretion — End of period $ |
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 includes the potential dilutive impact of non-vested restricted stock, 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 and nine months ended September 30, 2015, 9,861,834 shares of non-vested restricted stock, 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, were excluded from the diluted income (loss) per share calculation because they were anti-dilutive. For the three months and nine months ended September 30, 2014, 8,643,212 shares of non-vested restricted stock, non-vested restricted stock units, outstanding stock options and 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. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies | |
Schedule of changes in asset retirement obligation | September 30, 2015 ($ in thousands) Beginning of period — Liabilities incurred Accretion — End of period $ |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Cash and Cash Equivalents. | |
Cash and cash equivalents | September 30, 2015 December 31, 2014 ($ in thousands) Cash at banks $ $ Money market funds Held-to-maturity securities(1) $ $ (1) These securities mature three months or less from the date of purchase. |
Restricted Cash and Cash Equi24
Restricted Cash and Cash Equivalents (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restricted Cash and Cash Equivalents | |
Schedule of restricted funds | September 30, 2015 December 31, 2014 ($ in thousands) Angolan sale proceeds $ — American Express Bank pledge agreement — Citibank commercial card agreement — Total restricted funds(1) $ $ — (1) Pursuant to the purchase and sale agreement governing the Angola Transaction, the Company received the First Payment of $250 million during the quarterly period ended September 30, 2015. See Note 10—Angola Transaction . These funds are contractually restricted by the purchase and sale agreement pending the closing of the Angola Transaction. In addition, as of September 30, 2015, approximately $3.0 million was held in collateral accounts established to pledge funds for security of obligations under the American Express Bank Pledge Agreement and the Citibank Commercial Card Agreement. As of September 30, 2015, the Angolan sales proceeds and collateral in these accounts were invested in cash, certificates of deposit, commercial paper, and money market funds, resulting in a net carrying value of approximately $253.0 million. The contractual maturities of these securities are within ninety days. |
Joint Interest and Other Rece25
Joint Interest and Other Receivables (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Joint Interest and Other Receivables | |
Schedule of joint interest and other receivables | September 30, 2015 December 31, 2014 ($ in thousands) Partners in the U.S. Gulf of Mexico $ $ Accrued interest on investment securities Other $ $ |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments | |
Schedule of fair value of held-to-maturity securities recorded at amortized cost | September 30, 2015 December 31, 2014 ($ in thousands) Corporate securities $ $ Commercial paper U.S. Agency securities Certificates of deposit Total $ $ |
Schedule of held-to-maturity securities included in the company's condensed consolidated balance sheet | September 30, 2015 December 31, 2014 ($ in thousands) Cash and cash equivalents $ $ Short-term investments Restricted cash and cash equivalents — Long-term investments — $ $ |
Schedule of contractual maturities of held-to-maturity securities | September 30, 2015 December 31, 2014 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value ($ in thousands) Within 1 year $ $ $ $ After 1 year — — $ $ $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements | |
Significant financial instruments measured on a recurring basis as categorized by the fair value measurement hierarchy | Level 1 Level 2 Carrying Value Fair Value(1) Carrying Value Fair Value(1) Balance as of September 30, 2015 ($ in thousands) Cash and cash equivalents: Cash $ $ $ — $ — $ Money market funds — — Commercial paper — — Subtotal Restricted cash and cash equivalents: Money market funds — — Commercial paper — — Certificates of deposit — — Subtotal Short-term investments: U.S. Agency securities — — Corporate bonds — — Commercial paper — — Certificates of deposit — — Subtotal — — Long-term investments: Corporate bonds — — — — — Subtotal — — — — — Total $ $ $ $ $ Level 1 Level 2 Carrying Value Fair Value(1) Carrying Value Fair Value(1) Balance as of December 31, 2014 ($ in thousands) Cash and cash equivalents: Cash $ $ $ — $ — $ Money market funds — — Commercial paper — — Corporate bonds Subtotal Short-term investments: U.S. Agency securities — — Corporate bonds — — Commercial paper — — Certificates of deposit — — Subtotal — — Long-term investments: Corporate bonds — — Subtotal — — Total $ $ $ $ $ (1) As of September 30, 2015 and December 31, 2014, the Company did not record any OTTI on these assets. |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant, and Equipment | |
Schedule of property, plant, and equipment | Estimated Useful Life (Years) September 30, 2015 December 31, 2014 ($ in thousands) Oil and Gas Properties: Proved properties: Well and development costs $ $ Total proved properties Unproved properties: Oil and gas leasehold Less: accumulated valuation allowance ) ) Exploration wells in process Total unproved properties Total oil and gas properties, net Other Property and Equipment: Computer equipment and software 3 Office equipment and furniture 3 - 5 Leasehold improvements 3 - 10 Less: accumulated depreciation and amortization ) ) Total other property and equipment, net Property, plant, and equipment, net $ $ |
Schedule of unproved property acquisition costs, net of valuation allowance | September 30, 2015 December 31, 2014 ($ in thousands) Individual oil and gas leaseholds with carrying value greater than $1 million $ $ Individual oil and gas leaseholds with carrying value less than $1 million Accumulated valuation allowance ) ) Total oil and gas leasehold |
Schedule of net changes in capitalized exploration well costs | September 30, 2015 December 31, 2014 ($ in thousands) Beginning of period $ $ Additions to capitalized exploration Exploration well costs Capitalized interest Reclassifications to wells, facilities, and equipment based on determination of proved reserves — — Amounts charged to expense(1) ) ) End of period $ $ (1) The amount of $29.5 million charged to expense for the nine months ended September 30, 2015 primarily represents impairment charges of approximately $22.3 million related to the North Platte #2 appraisal well and impairment charges of approximately $6.6 million related to the lowest portion of the Shenandoah #4 appraisal well. The North Platte #2 appraisal well was plugged and abandoned due to a seal failure in the riser connection system. The well was at a depth of 20,701 feet when the problem with the riser was detected. The Company is continuing to assess what additional impairment charges or other liabilities, including any environmental liabilities, might be incurred in future periods related to the North Platte #2 appraisal well. |
Schedule of cumulative costs of capitalized exploration well costs | September 30, 2015 December 31, 2014 ($ in thousands) Cumulative costs: Exploration well costs $ $ Capitalized interest $ $ Well costs capitalized for a period greater than one year after completion of drilling (included in table above) $ $ |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Assets | |
Schedule of other assets | September 30, 2015 December 31, 2014 (in thousands) Debt issue cost(1) $ $ Rig costs(2) $ $ (1) As of September 30, 2015, the $37.7 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 and the Borrowing Base Facility Agreement, 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. (2) As of September 30, 2015 and December 31, 2014, the $24.3 million and $12.3 million, respectively, relate to costs associated with the Rowan Reliance drilling rig which is currently drilling in U.S. Gulf of Mexico. These costs are capitalized to the wells over the term of the respective drilling rig contracts. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Long-term Debt | |
Schedule of the carrying amounts of the liability components of the Notes | September 30, 2015 December 31, 2014 Principal Amount Unamortized discount(1) Carrying Amount Principal Amount Unamortized discount Carrying Amount ($ in thousands) Carrying amount of liability component 2.625% Notes $ $ ) $ $ $ ) $ 3.125% Notes ) ) Total $ $ ) $ $ $ ) $ (1) Unamortized discount will be amortized over the remaining life of the Notes which is 4.25 years for the 2.625% Notes and 8.75 years for the 3.125% Notes. |
Schedule of carrying amounts of the equity components of the Notes | September 30, 2015 December 31, 2014 ($ in thousands) Debt discount relating to value of conversion option $ $ Debt issue costs ) ) Total $ $ |
Schedule of the fair value of the Notes excluding the conversion feature | September 30, 2015 December 31, 2014 ($ in thousands) 2.625% Notes $ $ 3.125% Notes Total $ $ |
Angola Transaction (Tables)
Angola Transaction (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Angola Transaction | |
Summary of assets and liabilities and operation results associated with Blocks 9, 20, and 21 offshore Angola | The following table summarizes the assets and liabilities associated with Blocks 9, 20, and 21 offshore Angola: September 30, 2015 December 31, 2014(1) ($ in thousands) Cash and cash equivalents $ $ Joint interest and other receivables Prepaid expenses and other current assets Inventory Short term restricted funds Oil and gas properties Other property and equipment, net Long term restricted funds Other assets Total assets of the discontinued operation Trade and other accounts payable ) ) Accrued liabilities ) ) Short term contractual obligations ) ) Long term contractual obligations ) ) Other long term liabilities — ) Total liabilities of the discontinued operation $ ) $ ) (1) Amounts in the comparative period are broken out between current and long-term on the consolidated balance sheet. Results for Blocks 9, 20, and 21 offshore Angola classified within discontinued operations consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Seismic and exploration $ $ $ $ Dry hole expense and impairment General and administrative Depreciation and amortization $ $ $ $ |
Seismic and Exploration Expen32
Seismic and Exploration Expenses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Seismic and Exploration Expenses | |
Schedule of seismic and exploration expenses | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Seismic costs $ $ $ $ Leasehold delay rentals Other exploration expense $ $ $ $ |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015USD ($)shares | Sep. 30, 2014shares | Sep. 30, 2015USD ($)segmentshares | Sep. 30, 2014shares | Aug. 22, 2015 | Dec. 31, 2014USD ($) | May. 13, 2014 | Dec. 17, 2012 | |
General | ||||||||
Number of reportable segment | segment | 1 | |||||||
Investments | ||||||||
OTTI in debt securities | $ 0 | $ 0 | $ 0 | |||||
Changes in asset retirement obligation | ||||||||
Liabilities incurred | 3,069,000 | |||||||
End of period | $ 3,069,000 | $ 3,069,000 | ||||||
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 | shares | 9,861,834 | 8,643,212 | 9,861,834 | 8,643,212 | ||||
Discontinued operations held for sale | Block 20, offshore Angola | CIE Angola Block 20 Ltd | ||||||||
General | ||||||||
Percentage of working interest acquired | 40.00% | |||||||
Discontinued operations held for sale | Block 21, offshore Angola | CIE Angola Block 21 Ltd | ||||||||
General | ||||||||
Percentage of working interest acquired | 40.00% | |||||||
2.625% convertible senior notes due 2019 | ||||||||
Earnings (Loss) Per Share | ||||||||
Interest rate (as a percent) | 2.625% | 2.625% | 2.625% | 2.625% | ||||
3.125% convertible senior notes due 2024 | ||||||||
Earnings (Loss) Per Share | ||||||||
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% | 3.125% |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Cash and Cash Equivalents. | ||||
Cash at banks | $ 20,957 | $ 45,733 | ||
Money market funds | 55,002 | 122,218 | ||
Held-to-maturity securities | 24,488 | 78,753 | ||
Total | $ 100,447 | $ 246,704 | $ 155,435 | $ 165,663 |
Restricted Cash and Cash Equi35
Restricted Cash and Cash Equivalents (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Restricted Cash and Cash Equivalents | |
Restricted cash and cash equivalents | $ 252,950 |
Contractual maturity period of restricted cash and cash equivalents | 90 days |
Angloan sale proceeds | |
Restricted Cash and Cash Equivalents | |
Restricted cash and cash equivalents | $ 250,000 |
Consideration received | 250,000 |
American Express Bank And Citibank pledge agreement | |
Restricted Cash and Cash Equivalents | |
Collateral held | 3,000 |
American Express Bank pledge agreement | |
Restricted Cash and Cash Equivalents | |
Restricted cash and cash equivalents | 750 |
Citibank, commercial card agreement | |
Restricted Cash and Cash Equivalents | |
Restricted cash and cash equivalents | $ 2,200 |
Joint Interest and Other Rece36
Joint Interest and Other Receivables (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Joint Interest and Other Receivables | ||
Settlement period for bills under operating agreements | 30 days | |
Joint Interest and Other Receivables | ||
Accrued interest on investment securities | $ 4,740 | $ 7,663 |
Other | 249 | 2,637 |
Receivable attributable to joint interest partners | 91,666 | 13,575 |
Partners in the U.S. Gulf of Mexico | ||
Joint Interest and Other Receivables | ||
Receivable attributable to joint interest partners | $ 86,677 | $ 3,275 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investments | ||
Fair market value | $ 1,355,716 | $ 1,935,006 |
Held-to-maturities, Carrying value | ||
Within 1 year | 1,355,716 | 1,608,959 |
After 1 year | 326,047 | |
Total | 1,355,716 | 1,935,006 |
Held-to-maturity securities, Estimated fair value | ||
Within 1 year | 1,355,716 | 1,608,959 |
After 1 year | 326,047 | |
Total | 1,355,716 | 1,935,006 |
Cash and cash equivalents | ||
Investments | ||
Fair market value | 24,488 | 78,753 |
Held-to-maturity securities, Estimated fair value | ||
Total | 24,488 | 78,753 |
Short-term investments | ||
Investments | ||
Fair market value | 1,235,350 | 1,530,206 |
Held-to-maturity securities, Estimated fair value | ||
Total | 1,235,350 | 1,530,206 |
Restricted cash and cash equivalents | ||
Investments | ||
Fair market value | 95,878 | |
Held-to-maturity securities, Estimated fair value | ||
Total | 95,878 | |
Long-term investments | ||
Investments | ||
Fair market value | 326,047 | |
Held-to-maturity securities, Estimated fair value | ||
Total | 326,047 | |
Corporate securities | ||
Investments | ||
Fair market value | 768,016 | 1,321,261 |
Held-to-maturity securities, Estimated fair value | ||
Total | 768,016 | 1,321,261 |
Commercial paper | ||
Investments | ||
Fair market value | 491,749 | 483,534 |
Held-to-maturity securities, Estimated fair value | ||
Total | 491,749 | 483,534 |
U.S. Agency Securities | ||
Investments | ||
Fair market value | 24,999 | 24,996 |
Held-to-maturity securities, Estimated fair value | ||
Total | 24,999 | 24,996 |
Certificates of deposit | ||
Investments | ||
Fair market value | 70,952 | 105,215 |
Held-to-maturity securities, Estimated fair value | ||
Total | $ 70,952 | $ 105,215 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | $ 100,447 | $ 246,704 | $ 155,435 | $ 165,663 |
Restricted cash and cash equivalents | 252,950 | |||
Short-term investments | 1,235,350 | 1,530,206 | ||
Long-term investments | 326,047 | |||
Total | 1,588,747 | 2,102,957 | ||
Cash. | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 20,957 | 45,733 | ||
Money market funds | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 55,002 | 122,218 | ||
Restricted cash and cash equivalents | 157,702 | |||
Commercial paper | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 24,488 | 70,524 | ||
Restricted cash and cash equivalents | 95,128 | |||
Short-term investments | 372,133 | 413,010 | ||
U.S. Agency Securities | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Short-term investments | 24,999 | 24,996 | ||
Corporate securities | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 8,229 | |||
Short-term investments | 768,016 | 986,985 | ||
Long-term investments | 326,047 | |||
Certificates of deposit | Recurring basis | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Restricted cash and cash equivalents | 750 | |||
Short-term investments | 70,202 | 105,215 | ||
Level 1 | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 75,959 | 167,951 | ||
Restricted cash and cash equivalents | 157,072 | |||
Total | 233,031 | 167,951 | ||
Level 1 | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 75,959 | 167,951 | ||
Restricted cash and cash equivalents | 157,072 | |||
Total | 233,031 | 167,951 | ||
Level 1 | Cash. | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 20,957 | 45,733 | ||
Level 1 | Cash. | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 20,957 | 45,733 | ||
Level 1 | Money market funds | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 55,002 | 122,218 | ||
Restricted cash and cash equivalents | 157,072 | |||
Level 1 | Money market funds | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 55,002 | 122,218 | ||
Restricted cash and cash equivalents | 157,072 | |||
Level 2 | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 24,488 | 78,753 | ||
Restricted cash and cash equivalents | 95,878 | |||
Short-term investments | 1,235,350 | 1,530,206 | ||
Long-term investments | 326,047 | |||
Total | 1,355,716 | 1,935,006 | ||
Level 2 | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 24,488 | 78,753 | ||
Restricted cash and cash equivalents | 95,878 | |||
Short-term investments | 1,235,350 | 1,530,206 | ||
Long-term investments | 326,047 | |||
Total | 1,355,716 | 1,935,006 | ||
Level 2 | Commercial paper | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Cash and cash equivalents | 24,488 | 70,524 | ||
Restricted cash and cash equivalents | 95,128 | |||
Short-term investments | 372,133 | 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 | 24,488 | 70,524 | ||
Restricted cash and cash equivalents | 95,128 | |||
Short-term investments | 372,133 | 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 | 24,999 | 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 | 24,999 | 24,996 | ||
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 | 768,016 | 986,985 | ||
Long-term investments | 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 | 768,016 | 986,985 | ||
Long-term investments | 326,047 | |||
Level 2 | Certificates of deposit | Recurring basis | Carrying Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Restricted cash and cash equivalents | 750 | |||
Short-term investments | 70,202 | 105,215 | ||
Level 2 | Certificates of deposit | Recurring basis | Fair Value | ||||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||||
Restricted cash and cash equivalents | 750 | |||
Short-term investments | $ 70,202 | $ 105,215 |
Property, Plant, and Equipmen39
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
Property, Plant, and Equipment | ||||||
Well and development costs | $ 318,773 | $ 318,773 | $ 183,221 | |||
Total proved properties | 318,773 | 318,773 | 183,221 | |||
Oil and gas leasehold | 404,781 | 404,781 | 406,643 | |||
Less: accumulated valuation allowance | (180,410) | (180,410) | (208,725) | |||
Total oil and gas leasehold | 224,371 | 224,371 | 197,918 | |||
Total unproved properties | 732,600 | 732,600 | 528,017 | |||
Total oil and gas properties, net | 1,051,373 | 1,051,373 | 711,238 | |||
Other Property and Equipment | 8,849 | 8,849 | 8,661 | |||
Less: accumulated depreciation and amortization | (6,369) | (6,369) | (5,245) | |||
Total other property and equipment | 2,480 | 2,480 | 3,416 | |||
Total property, plant, and equipment, net | 1,053,853 | 1,053,853 | 714,654 | |||
Depreciation and amortization | 346 | $ 410 | 1,125 | $ 1,277 | ||
Percentage of working interest assigned to wholly owned subsidiary | 9.375% | |||||
Unproved property acquisition costs, net of valuation allowance | ||||||
Unproved property | 404,781 | 404,781 | 406,643 | |||
Accumulated valuation allowance | (180,410) | (180,410) | (208,725) | |||
Total oil and gas leasehold | 224,371 | 224,371 | 197,918 | |||
Development well costs | ||||||
Property, Plant, and Equipment | ||||||
Well and development costs | 189,500 | 189,500 | 132,100 | |||
Exploration wells in process | ||||||
Property, Plant, and Equipment | ||||||
Total unproved properties | 508,229 | 508,229 | 330,099 | |||
Exploration wells in process | Exploration well costs | ||||||
Property, Plant, and Equipment | ||||||
Well and development costs | 129,300 | $ 129,300 | 51,100 | |||
Computer equipment and software | ||||||
Property, Plant, and Equipment | ||||||
Estimated Useful Life | 3 years | |||||
Other Property and Equipment | 5,349 | $ 5,349 | 5,214 | |||
Office equipment and furniture | ||||||
Property, Plant, and Equipment | ||||||
Other Property and Equipment | 1,349 | $ 1,349 | 1,329 | |||
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 | |||||
Leasehold improvements | ||||||
Property, Plant, and Equipment | ||||||
Other Property and Equipment | 2,151 | $ 2,151 | 2,118 | |||
Leasehold improvements | Minimum | ||||||
Property, Plant, and Equipment | ||||||
Estimated Useful Life | 3 years | |||||
Leasehold improvements | Maximum | ||||||
Property, Plant, and Equipment | ||||||
Estimated Useful Life | 10 years | |||||
Oil and gas properties, net | ||||||
Property, Plant, and Equipment | ||||||
Oil and gas leasehold | 404,781 | $ 404,781 | 406,643 | |||
Less: accumulated valuation allowance | (180,410) | (180,410) | (208,725) | |||
Unproved property acquisition costs, net of valuation allowance | ||||||
Individual oil and gas leaseholds with carrying value greater than $1 million | 326,250 | 326,250 | 322,727 | |||
Individual oil and gas leaseholds with carrying value less than $1 million | 78,531 | 78,531 | 83,916 | |||
Unproved property | 404,781 | 404,781 | 406,643 | |||
Accumulated valuation allowance | (180,410) | (180,410) | (208,725) | |||
Upper limit of individual leasehold | 1,000 | 1,000 | 1,000 | |||
Lower limit of individual leasehold | $ 1,000 | $ 1,000 | $ 1,000 |
Property, Plant, and Equipmen40
Property, Plant, and Equipment (Details 2) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($)ft | Dec. 31, 2014USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
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 | $ 330,099 | $ 233,143 | ||
Amounts charged to expense | (29,454) | (64,253) | ||
End of period | 508,229 | 330,099 | ||
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||||
Cumulative costs | $ 330,099 | 233,143 | $ 508,229 | $ 330,099 |
Well costs capitalized for a period greater than one year after completion of drilling | 247,845 | 233,141 | ||
Number of feet | ft | 20,701 | |||
Exploration well costs | ||||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||||
Beginning of period | $ 315,697 | |||
Additions to capitalized exploration | 191,777 | 151,687 | ||
End of period | 478,019 | 315,697 | ||
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||||
Cumulative costs | 315,697 | 315,697 | 478,019 | 315,697 |
Capitalized interest | ||||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||||
Beginning of period | 14,402 | |||
Additions to capitalized exploration | 15,807 | 9,522 | ||
End of period | 30,210 | 14,402 | ||
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||||
Cumulative costs | 14,402 | $ 14,402 | $ 30,210 | $ 14,402 |
North Platte #2 appraisal well | ||||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||||
Impairment charges | 22,300 | |||
Shenandoah #4 appraisal well | ||||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||||
Impairment charges | $ 6,600 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2015 | May. 13, 2014 | Dec. 17, 2012 | |
Other Assets | ||||
Debt issue cost | $ 36,708 | $ 37,727 | ||
Rig costs | 12,324 | 24,318 | ||
Other assets | 49,032 | $ 62,045 | ||
2.625% convertible senior notes due 2019 | ||||
Other Assets | ||||
Debt issue costs | $ 18,500 | |||
Interest rate (as a percent) | 2.625% | 2.625% | 2.625% | |
3.125% convertible senior notes due 2024 | ||||
Other Assets | ||||
Debt issue costs | $ 18,200 | |||
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% |
Long-term Debt (Details)
Long-term Debt (Details) $ / shares in Units, $ in Thousands | May. 29, 2015USD ($) | May. 13, 2014USD ($)item$ / shares | Dec. 17, 2012USD ($)item$ / shares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)item$ / shares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Debt instrument | |||||||||
Accrued for interest | $ 27,300 | $ 27,300 | $ 27,300 | ||||||
Carrying amounts of the liability components | |||||||||
Carrying amount of the liability components | 1,992,499 | $ 1,992,499 | 1,992,499 | $ 1,928,528 | |||||
Carrying amounts of the equity components | |||||||||
Interest expense, net of capitalized amount | $ 14,700 | $ 23,500 | $ 52,600 | $ 52,600 | |||||
Facility Agreement | |||||||||
Debt instrument | |||||||||
Maximum guaranteed amount to fund cost overruns | $ 38,700 | ||||||||
Cash obligated to deposit in a collateral account for funding of cost overruns | $ 19,400 | ||||||||
Funding obligation in cash for cost overruns (as a percent) | 50.00% | ||||||||
Project life coverage ratio | 1.5 | ||||||||
Loan life coverage ratio | 1.3 | ||||||||
Aggregate remaining reserves for the Heidelberg field to the initial approved reserves (as a percent) | 20.00% | ||||||||
Maximum debt to equity ratio | 70.00% | ||||||||
Maximum project loan life coverage ratio | 1.5 | ||||||||
Maximum loan life coverage ratio | 1.3 | ||||||||
Maximum debt service coverage ratio | 1.2 | ||||||||
2.625% convertible senior notes due 2019 | |||||||||
Debt instrument | |||||||||
Aggregate principal amount of notes issued | $ 1,380,000 | ||||||||
Interest rate (as a percent) | 2.625% | 2.625% | 2.625% | 2.625% | 2.625% | ||||
Initial conversion rate of common stock | 28.023 | ||||||||
Initial conversion price per share of common stock (in dollars per share) | $ / shares | $ 35.68 | ||||||||
Number of underlying shares that the holder of the debt instrument would receive upon conversion | item | 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 | $ 1,380,000 | $ 1,380,000 | $ 1,380,000 | |||||
Unamortized discount | (256,498) | (256,498) | (256,498) | (295,509) | |||||
Carrying amount of the liability components | 1,123,502 | 1,123,502 | $ 1,123,502 | 1,084,491 | |||||
Remaining term of debt | 4 years 3 months | ||||||||
Carrying amounts of the equity components | |||||||||
Fair value of the notes excluding conversion feature | $ 1,371,000 | $ 1,371,000 | $ 1,371,000 | $ 1,361,000 | |||||
3.125% convertible senior notes due 2024 | |||||||||
Debt instrument | |||||||||
Aggregate principal amount of notes issued | $ 1,300,000 | ||||||||
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | ||||
Initial conversion rate of common stock | 43.3604 | ||||||||
Initial conversion price per share of common stock (in dollars per share) | $ / shares | $ 23.06 | ||||||||
Number of underlying shares that the holder of the debt instrument would receive upon conversion | item | 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 | item | 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 | $ / shares | $ 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 | $ 1,300,000 | $ 1,300,000 | $ 1,300,000 | |||||
Unamortized discount | (431,003) | (431,003) | (431,003) | (455,963) | |||||
Carrying amount of the liability components | 868,997 | 868,997 | $ 868,997 | 844,037 | |||||
Remaining term of debt | 8 years 9 months | ||||||||
Carrying amounts of the equity components | |||||||||
Fair value of the notes excluding conversion feature | 1,146,000 | 1,146,000 | $ 1,146,000 | 1,047,000 | |||||
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% | ||||||||
Deferred tax liability, from debt discount | 241,800 | 241,800 | 241,800 | 264,300 | |||||
Carrying amounts of the liability components | |||||||||
Principal Amount | 2,680,000 | 2,680,000 | 2,680,000 | 2,680,000 | |||||
Unamortized discount | (687,501) | (687,501) | (687,501) | (751,472) | |||||
Carrying amount of the liability components | 1,992,499 | 1,992,499 | 1,992,499 | 1,928,528 | |||||
Carrying amounts of the equity components | |||||||||
Debt discount relating to value of conversion option | 866,340 | 866,340 | 866,340 | 866,340 | |||||
Debt issue costs | (20,185) | (20,185) | |||||||
Total | 846,155 | 846,155 | 846,155 | 846,155 | |||||
Fair value of the notes excluding conversion feature | $ 2,517,000 | $ 2,517,000 | $ 2,517,000 | $ 2,408,000 | |||||
GOM#1 | Facility Agreement | |||||||||
Debt instrument | |||||||||
Maximum borrowing capacity | $ 150,000 | ||||||||
Availability for additional borrowings, upon the satisfaction of certain conditions | 100,000 | ||||||||
Availability for additional borrowings, if GOM#1?s interest in the Heidelberg field is increased | $ 400,000 | ||||||||
GOM#1 | Prior to Completion | Facility Agreement | |||||||||
Debt instrument | |||||||||
Unused commitment fee (as a percent) | 40.00% | ||||||||
GOM#1 | Prior to Completion | London Interbank Offered Rate (LIBOR) | Facility Agreement | |||||||||
Debt instrument | |||||||||
Margin to variable interest rate (as a percent) | 6.00% | ||||||||
GOM#1 | Prior to Completion | Base Rate | Facility Agreement | |||||||||
Debt instrument | |||||||||
Margin to variable interest rate (as a percent) | 5.00% | ||||||||
GOM#1 | Following Completion | Facility Agreement | |||||||||
Debt instrument | |||||||||
Mandatory prepayment with excess cash flow (in percent) | 33.00% | ||||||||
GOM#1 | Following Completion | London Interbank Offered Rate (LIBOR) | Facility Agreement | |||||||||
Debt instrument | |||||||||
Margin to variable interest rate (as a percent) | 4.00% | ||||||||
GOM#1 | Following Completion | Base Rate | Facility Agreement | |||||||||
Debt instrument | |||||||||
Margin to variable interest rate (as a percent) | 3.00% |
Angola Transaction (Details)
Angola Transaction (Details) - USD ($) $ in Thousands | Aug. 22, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Feb. 13, 2009 |
Angola Transaction | |||||||
Loss from discontinued operations | $ 9,477 | $ 75,453 | $ 34,051 | $ 117,336 | |||
Discontinued operations held for sale | Block 9, Block 20 And Block 21, Offshore Angola | |||||||
Angola Transaction | |||||||
Cash and cash equivalents | 12,037 | 12,037 | $ 12,017 | ||||
Joint interest and other receivables | 57,851 | 57,851 | 46,399 | ||||
Prepaid expenses and other current assets | 10,838 | 10,838 | 10,655 | ||||
Inventory | 41,908 | 41,908 | 59,581 | ||||
Short term restricted funds | 22,538 | 22,538 | 45,062 | ||||
Oil and gas properties | 1,497,632 | 1,497,632 | 1,209,741 | ||||
Other property and equipment, net | 10,027 | 10,027 | 7,965 | ||||
Long term restricted funds | 82,470 | 82,470 | 105,051 | ||||
Other assets | 1,258 | 1,258 | 4,904 | ||||
Total assets of the discontinued operation | 1,736,559 | 1,736,559 | 1,501,375 | ||||
Trade and other accounts payable | (15,507) | (15,507) | (7,939) | ||||
Accrued liabilities | (109,056) | (109,056) | (116,956) | ||||
Short term contractual obligations | (114,439) | (114,439) | (50,285) | ||||
Long term contractual obligations | (1,381) | (1,381) | (101,945) | ||||
Other long term liabilities | (351) | ||||||
Total liabilities of the discontinued operation | (240,383) | (240,383) | $ (277,476) | ||||
Seismic and exploration | 3,825 | 28,463 | 13,174 | 41,111 | |||
Dry hole expense and impairment | 885 | 37,849 | 1,496 | 39,706 | |||
General and administrative | 4,145 | 8,497 | 16,903 | 34,560 | |||
Depreciation and amortization | 622 | 644 | 2,478 | 1,959 | |||
Loss from discontinued operations | 9,477 | $ 75,453 | 34,051 | $ 117,336 | |||
Quarterly royalty payment, percentage of the market price of Whitton's rights and obligations under the Royalty Agreement | 2.50% | ||||||
Discontinued operations held for sale | Block 20 and Block 21 | |||||||
Angola Transaction | |||||||
Maximum time period for obtaining approvals from the Angolan government | 1 year | ||||||
Discontinued operations held for sale | Block 20 and Block 21 | CIE Angola block 20 and block 21 | |||||||
Angola Transaction | |||||||
Consideration | $ 1,750,000 | ||||||
Withholding taxes for the gross consideration to be paid | 19,700 | ||||||
Share of costs attributable to the drilling blocks, net of cash collateralized letter of credit and outstanding joint interest and other receivables | 307,000 | 307,000 | |||||
Cash collateralized letter of credit | 82,500 | 82,500 | |||||
Joint interest and other receivables | $ 57,900 | $ 57,900 | |||||
Discontinued operations held for sale | Block 20 and Block 21 | CIE Angola block 20 and block 21 | First Payment | |||||||
Angola Transaction | |||||||
Consideration | $ 250,000 | ||||||
Payment period after execution of the Purchase and Sale Agreement | 7 days | ||||||
Discontinued operations held for sale | Block 20 and Block 21 | CIE Angola block 20 and block 21 | Second Payment | |||||||
Angola Transaction | |||||||
Consideration | $ 1,280,000 | ||||||
Payment period after receipt of the Angolan government approvals | 15 days | ||||||
Discontinued operations held for sale | Block 20 and Block 21 | CIE Angola block 20 and block 21 | Third Payment | |||||||
Angola Transaction | |||||||
Consideration | $ 200,000 | ||||||
Payment period after execution of the Purchase and Sale Agreement | 1 year | ||||||
Payment period after execution of transfer of operations agreement | 30 days | ||||||
Maximum time period for obtaining approvals from the Angolan government to share costs | 15 days | ||||||
Discontinued operations held for sale | Block 20, offshore Angola | CIE Angola Block 20 Ltd | |||||||
Angola Transaction | |||||||
Percentage of working interest acquired | 40.00% | ||||||
Discontinued operations held for sale | Block 21, offshore Angola | CIE Angola Block 21 Ltd | |||||||
Angola Transaction | |||||||
Percentage of working interest acquired | 40.00% | ||||||
Sonangol Pesquisa e Producao, S.A | Block 20, offshore Angola | CIE Angola Block 20 Ltd | |||||||
Angola Transaction | |||||||
Percentage of working interest acquired | 30.00% | ||||||
Sonangol Pesquisa e Producao, S.A | Block 21, offshore Angola | CIE Angola Block 21 Ltd | |||||||
Angola Transaction | |||||||
Percentage of working interest acquired | 60.00% |
Seismic and Exploration Expen44
Seismic and Exploration Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Seismic and Exploration Expenses | ||||
Seismic costs | $ 8,771 | $ 8,173 | $ 28,572 | $ 10,478 |
Leasehold delay rentals | 872 | 1,125 | 5,198 | 5,547 |
Other exploration expense | 749 | 572 | 1,956 | 2,155 |
Total seismic and exploration expenses | $ 10,392 | $ 9,870 | $ 35,726 | $ 18,180 |
Equity Based Compensation (Deta
Equity Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 20, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Apr. 30, 2015 |
Number of Stock Options | ||||||
Equity based compensation expense, net of forfeitures recognized | $ 6,500 | $ 7,800 | $ 19,695 | $ 23,102 | ||
2015 Long Term Incentive Plan (the "2015 Plan") | ||||||
Restricted Shares | ||||||
Awards granted (in shares) | 150,000 | |||||
Common Stock | 2015 Long Term Incentive Plan (the "2015 Plan") | ||||||
Number of Stock Options | ||||||
Shares available for grant under the plan | 12,000,000 | |||||
Restricted Stock | ||||||
Restricted Shares | ||||||
Granted (in shares) | 3,503,948 | |||||
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) | 35,814 | |||||
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) | $ 4.53 | $ 3.52 | ||||
Reduction in aggregate fair value | $ 800 | |||||
Stock compensation expense | $ 200 | $ 1,000 | ||||
Restricted stock units awards | Non-employee directors | ||||||
Restricted Shares | ||||||
Awards granted (in shares) | 105,846 |