Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2016shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Cobalt International Energy, Inc. |
Entity Central Index Key | 1,471,261 |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2016 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Trading Symbol | CIE |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 417,333,252 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 277,462 | $ 71,593 |
Restricted funds | 252,200 | 252,950 |
Joint interest and other receivables | 43,691 | 54,709 |
Other current assets | 38,841 | 69,994 |
Investments | 144,127 | 885,994 |
Assets held for sale | 1,865,667 | 1,811,051 |
Total current assets | 2,621,988 | 3,146,291 |
Oil and natural gas properties, net of accumulated depletion of $13,242 and $0 as of September 30, 2016 and December 31, 2015, respectively | 1,053,666 | 893,734 |
Other property, net of accumulated depreciation and amortization of $8,046 and $6,647, as of September 30, 2016 and December, 31, 2015, respectively | 4,282 | 2,202 |
Other assets | 9,537 | 18,992 |
Total assets | 3,689,473 | 4,061,219 |
Current liabilities: | ||
Trade and other accounts payable | 86,698 | 856 |
Accrued liabilities | 115,810 | 126,323 |
Accrued contract amendment costs | 50,908 | |
Deferred Angola sales proceeds | 250,000 | 250,000 |
Liabilities related to assets held for sale | 141,563 | 250,839 |
Total current liabilities | 644,979 | 628,018 |
Long-term debt | 2,055,342 | 1,981,895 |
Asset retirement obligations | 3,473 | 3,167 |
Other long-term liabilities | 1,843 | 2,002 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value per share; 2,000,000,000 shares authorized, 410,322,271 and 408,740,182 issued and outstanding as of September 30, 2016 and December 31, 2015, respectively | 4,103 | 4,088 |
Additional paid-in capital | 4,172,150 | 4,164,097 |
Accumulated deficit | (3,192,417) | (2,722,048) |
Total stockholders’ equity | 983,836 | 1,446,137 |
Total liabilities and stockholders’ equity | $ 3,689,473 | $ 4,061,219 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Oil and natural gas properties, accumulated depletion (in dollars) | $ 13,242 | $ 0 |
Other property, accumulated depreciation and amortization (in dollars) | $ 8,046 | $ 6,647 |
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 | 410,322,271 | 408,740,182 |
Common stock, shares outstanding | 410,322,271 | 408,740,182 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Oil, natural gas and natural gas liquids revenues | $ 4,228 | $ 9,037 | ||
Operating costs and expenses: | ||||
Seismic and exploration costs | 19,641 | $ 10,392 | 24,722 | $ 35,726 |
Dry hole costs and impairments | 48,667 | 10,880 | 202,182 | 38,310 |
Loss on amendment of contract | 95,908 | 95,908 | ||
Lease operating expenses | 2,372 | 5,031 | ||
General and administrative expenses | 30,004 | 14,848 | 68,315 | 53,015 |
Accretion expense | 102 | 306 | ||
Depreciation, depletion and amortization | 7,182 | 346 | 14,642 | 1,125 |
Total operating costs and expenses | 203,876 | 36,466 | 411,106 | 128,176 |
Operating loss | (199,648) | (36,466) | (402,069) | (128,176) |
Other (expense) income, net: | ||||
Gain on sale of assets | 7 | 2,632 | ||
Interest income | 990 | 1,475 | 3,781 | 4,588 |
Interest expense | (15,033) | (14,703) | (46,650) | (52,565) |
Total other expense, net | (14,043) | (13,221) | (42,869) | (45,345) |
Loss from continuing operations | (213,691) | (49,687) | (444,938) | (173,521) |
Loss from discontinued operations | (4,514) | (9,477) | (25,431) | (34,051) |
Net loss | $ (218,205) | $ (59,164) | $ (470,369) | $ (207,572) |
Basic and diluted earnings per share: | ||||
Loss from continuing operations | $ (0.52) | $ (0.12) | $ (1.09) | $ (0.42) |
Loss from discontinued operations | (0.01) | (0.02) | (0.06) | (0.08) |
Net loss | $ (0.53) | $ (0.14) | $ (1.15) | $ (0.50) |
Weighted average common shares outstanding (basic and diluted) | 410,245 | 408,545 | 409,810 | 408,525 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Changes in Stockholders' Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance at Dec. 31, 2015 | $ 1,446,137 | $ 4,088 | $ 4,164,097 | $ (2,722,048) |
Equity based compensation | 8,068 | 8,068 | ||
Common stock issued for restricted stock and stock options | 15 | (15) | ||
Net loss | (470,369) | (470,369) | ||
Balance at Sep. 30, 2016 | $ 983,836 | $ 4,103 | $ 4,172,150 | $ (3,192,417) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (470,369) | $ (207,572) |
Adjustments to reconcile net loss to net cash flows used in operating activities: | ||
Dry hole costs and impairments | 202,182 | 38,310 |
Equity based compensation | 11,052 | 19,695 |
Accretion expense | 306 | |
Depreciation, depletion and amortization | 14,642 | 1,125 |
Gain on the sale of assets | (2,632) | |
Amortization of premium (accretion of discount) on investments | 497 | 11,984 |
Amortization of debt discount and debt issuance costs | 77,041 | 66,977 |
Loss from discontinued operations | 25,431 | 34,051 |
Changes in operating assets and liabilities: | ||
Joint interest and other receivables | 11,018 | (77,217) |
Other current assets | 31,153 | (34,449) |
Trade and other accounts payable | 29,543 | (70) |
Accrued liabilities | 15,499 | (55,666) |
Accrued contract amendment costs | 50,908 | |
Other | 14,749 | (11,994) |
Net cash flows provided by (used in) operating activities from continuing operations | 13,652 | (217,458) |
Net cash flows used in operating activities from discontinued operations | (88,484) | (11,685) |
Net cash flows used in operating activities | (74,832) | (229,143) |
Cash flows from investing activities | ||
Additions to oil and natural gas properties | (348,053) | (223,350) |
Capital expenditures for other property and equipment | (3,480) | (188) |
Change in restricted funds | 750 | (48,999) |
Proceeds from maturity of investment securities | 1,463,268 | 1,396,756 |
Purchase of investment securities | (639,556) | (742,666) |
Net cash flows provided by investing activities from continuing operations | 472,929 | 381,553 |
Net cash flows used in investing activities from discontinued operations | (192,228) | (294,642) |
Net cash flows provided by investing activities | 280,701 | 86,911 |
Cash flows from financing activities | ||
Payment of debt issuance costs | (4,025) | |
Increase (decrease) in cash and cash equivalents | 205,869 | (146,257) |
Cash and cash equivalents — beginning of year | 71,593 | 246,704 |
Cash and cash equivalents — end of period | $ 277,462 | $ 100,447 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Cobalt International Energy, Inc., together with its wholly–owned subsidiaries (“we,” “our” or “us”) is an independent exploration and production company with operations currently focused in the deepwater U.S. Gulf of Mexico. We also have a non–operated interest in the Diaba Block offshore Gabon in West Africa. Sustained low prices for oil, natural gas and natural gas liquids could reduce our access to the capital markets, which could have a material adverse effect on our liquidity. A further or extended decline in prices could also adversely have a significant impact on the value and quantities of our reserves, assuming no other changes in our development plans. In response to continued depressed prices, we have taken steps going forward to continue to preserve our liquidity and financial flexibility. These steps include (i) marketing and monetizing our Angolan assets; (ii) continuing cost cutting efforts for long–term rig and support services; (iii) focusing on aligning our debt instruments and maturities with upcoming development investments in the Gulf of Mexico; (iv) evaluating potential Gulf of Mexico asset farm down scenarios as a contingency for the Angola sale process; (v) concentrating investments on the highest value opportunities in order to facilitate development as soon as appraisal is complete; (vi) planning for production ramp up by 2021; and (vii) engaging financial and legal advisors to assist us in analyzing and evaluating potential strategic alternatives and initiatives to improve liquidity. In August 2015, Cobalt International Energy Angola Ltd.(“Cobalt Angola”), a wholly–owned subsidiary, executed a purchase and sale agreement (the “Agreement”) with Sociedade Nacional de Combustíveis de Angola—Empresa Pública (“Sonangol”) for the sale by us to Sonangol of the entire issued and outstanding share capital of Cobalt Angola’s indirect wholly–owned subsidiaries CIE Angola Block 20 Ltd. and CIE Angola Block 21 Ltd., which respectively hold our 40% working interest in each of Block 20 and Block 21 offshore Angola. The requisite Angolan government approvals were not received within one year from the execution date and the Agreement was terminated in August 2016. We are working with Sonangol to understand and agree on the financial and operational implications of the termination of the Agreement. We are currently marketing our Angolan assets and have continued to classify our unaudited condensed consolidated financial statements for all periods presented to reflect the operations of our working interests in Blocks 20 and 21 offshore Angola as discontinued operations (see Note 7). Historically, our Angolan subsidiaries constituted a significant portion of our West Africa segment. Our operations in Gabon, which are deemed immaterial, have now been combined with our United States segment and we now operate in one reportable segment. Basis of Presentation Our unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. We believe that the presentations and disclosures herein are adequate to make the information not misleading. The unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) for a fair presentation of the interim periods. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in Item 8 of our Annual Report on Form 10–K for the year ended December 31, 2015. Certain reclassifications have been made to prior period amounts to conform to the current period’s presentation. All intercompany accounts and transactions have been eliminated in consolidation. In the Notes to Unaudited Condensed Consolidated Financial Statements, all dollar and share amounts in tabulations are in thousands of dollars and shares, respectively, unless otherwise indicated. Correction of Immaterial Errors Our unaudited condensed consolidated financial statements for the nine months ended September 30, 2016 include an $8.5 million reduction to an impairment charge recorded in 2015. This amount was not deemed material with respect to such prior year or the anticipated results and the trend of earnings for 2016. Recently Issued Accounting Standards In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014–15, Presentation of Financial Statements – Going Concern In April 2015, the FASB issued ASU No. 2015–03, Interest—Imputation of Interest In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Subtopic 718) In June 2016, the FASB issued ASU 2016–13, Financial Instruments – Credit Losses No other new accounting pronouncements issued or effective during the nine months ended September 30, 2016 have had or are expected to have a material impact on our unaudited condensed consolidated financial statements. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | NOTE 2. INVESTMENTS We have investments in marketable debt securities that are classified as held–to–maturity and carried at amortized cost. As the estimated fair value of each investment approximates its amortized cost, there were no significant unrecognized holding gains or losses. Our investments in held–to–maturity securities consist of the following: September 30, 2016 December 31, 2015 Current: Corporate securities $ 39,104 $ 492,955 Commercial paper 251,482 604,986 U.S. Treasury securities 41,421 — Certificates of deposit — 20,750 Total 332,007 1,118,691 Noncurrent - U.S. Treasury security 9,047 — Total $ 341,054 $ 1,118,691 These investments are recorded in our unaudited condensed consolidated balance sheet as follows: September 30, 2016 December 31, 2015 Cash and cash equivalents $ 187,880 $ 38,420 Restricted funds — 194,277 Investments 144,127 885,994 Other assets 9,047 — $ 341,054 $ 1,118,691 At September 30, 2016 and December 31, 2015, the contractual maturities of our investments were within one year. Actual maturities may differ from contractual maturities as some borrowers have the right to call or prepay obligations with or without call or prepayment penalties. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 3. FAIR VALUE MEASUREMENTS The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets or liabilities. Level 2 refers to fair values determined based on quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration. Level 3 refers to fair values determined based on our own assumptions used to measure assets and liabilities at fair value. Recurring Basis The following tables presents the fair value hierarchy for our assets that are required to be measured at fair value on a recurring basis: Fair Value Measurements at the End of the Reporting Period Fair Value Level 1 Level 2 Level 3 As of September 30, 2016: Held-to-maturity investments: Corporate bonds $ 39,104 $ — $ 39,104 $ — Commercial paper 251,482 — 251,482 — U.S. Treasury securities 50,468 — 50,468 — Total $ 341,054 $ — $ 341,054 $ — As of December 31, 2015: Held-to-maturity investments: Corporate bonds $ 492,955 $ — $ 492,955 $ — Commercial paper 604,986 — 604,986 — Certificates of deposit 20,750 — 20,750 — Total $ 1,118,691 $ — $ 1,118,691 $ — Our investments are not traded on a public exchange and the fair value of these investments is based on inputs using valuations obtained from independent brokers. As these valuations use readily observable market parameters that are actively quoted and can be validated through external sources, we have categorized these investments as Level 2. There were no changes in valuation techniques or related inputs in the nine months ended September 30, 2016. Financial Instruments The estimated fair values of our financial instruments have been determined at discrete points in time based on relevant market information. Our financial instruments consist of cash and cash equivalents, joint interest and other receivables, short–term and long–term restricted funds and investments, accounts payable and accrued liabilities. The carrying amounts of our financial instruments other than long–term debt approximate fair value because of the short–term nature of the items. The estimated fair value of our 2.625% convertible senior notes due 2019 was $705.5 million and $793.5 million at September 30, 2016 and December 31, 2015, respectively, which differs from the carrying value of $1,166.2 million and $1,121.4 million at September 30, 2016 and December 31, 2015, respectively. The estimated fair value of our 3.125% senior convertible notes due 2024 was $502.1 million and $640.2 million at September 30, 2016 and December 31, 2015, respectively, which differs from the carrying value of $889.2 million and $860.5 million at September 30, 2016 and December 31, 2015, respectively. The fair values of our long–term debt were calculated using Level 2 inputs and were based on discounted cash flows and the fair value of similar debt instruments. |
Oil and Natural Gas Properties
Oil and Natural Gas Properties | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Oil and Natural Gas Properties | NOTE 4. OIL AND NATURAL GAS PROPERTIES Oil and natural gas properties consist of the following: September 30, 2016 December 31, 2015 Proved oil and natural gas properties: Well and development costs $ 105,731 $ 71,463 Accumulated depletion (13,242 ) — Total proved oil and natural gas properties 92,489 71,463 Unproved oil and natural gas properties: Oil and natural gas leasehold: Oil and natural gas leaseholds with carrying value greater than $1.0 million 255,204 305,270 Oil and natural gas leasehold with carrying value less than $1.0 million 69,854 77,706 Accumulated valuation allowance (170,357 ) (175,963 ) 154,701 207,013 Exploration wells in process 806,476 615,258 Total unproved oil and natural gas properties 961,177 822,271 Total oil and natural gas properties, net $ 1,053,666 $ 893,734 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 net changes in and the cumulative costs of capitalized exploration well costs (excluding any related leasehold costs): September 30, 2016 December 31, 2015 Beginning of period $ 615,258 $ 330,099 Additions to capitalized exploration Exploration well costs 311,154 285,118 Capitalized interest 33,460 24,161 Amounts charged to expense (1) (153,396 ) (24,120 ) End of period $ 806,476 $ 615,258 (1) Amounts represent dry hole costs related to exploration wells drilled in the U.S. Gulf of Mexico which did not encounter commercial hydrocarbons. Of the $153.4 million in 2016, $149.5 million related to the Goodfellow #1 exploration well and sidetrack. September 30, 2016 December 31, 2015 Cumulative costs: Exploration well costs $ 734,452 $ 576,694 Capitalized interest 72,024 38,564 $ 806,476 $ 615,258 Well costs capitalized for a period greater than one year after completion of drilling (included in table above) $ 633,827 $ 351,753 As of September 30, 2016, capitalized exploration well costs that have been suspended longer than one year are associated with our Shenandoah, North Platte, Anchor, 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. We believe these discoveries exhibit sufficient indications of hydrocarbons to justify potential development and are 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. |
Long-term Debt, Net
Long-term Debt, Net | 9 Months Ended |
Sep. 30, 2016 | |
Long Term Debt [Abstract] | |
Long-term Debt, Net | NOTE 5. LONG–TERM DEBT, NET Long–term debt, net consisted of the following: September 30, 2016 December 31, 2015 2.625% convertible senior notes due 2019: Principal outstanding $ 1,380,000 $ 1,380,000 Unamortized discount (1) (213,820 ) (258,565 ) Carrying amount 1,166,180 1,121,435 3.125% convertible senior notes due 2024: Principal outstanding 1,300,000 1,300,000 Unamortized discount and debt issuance costs (2) (410,838 ) (439,540 ) Carrying amount 889,162 860,460 Total $ 2,055,342 $ 1,981,895 (1) (2) In June 2016, Cobalt GOM #1 LLC, an indirect wholly–owned subsidiary, terminated the Borrowing Base Facility Agreement (the “Facility Agreement”) which provided for a limited recourse $150.0 million senior secured reserve–based term loan facility, with an amount available for borrowing at any time limited to a periodically adjusted borrowing base amount. We terminated the Facility Agreement because the borrowing base amount under the Facility Agreement was expected to be materially reduced to a level that would not justify the ongoing expense of maintaining the facility. In conjunction with the termination, we |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 6. COMMITMENTS AND CONTINGENCIES We are 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 our consolidated financial position, results of operations or liquidity. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 7. DISCONTINUED OPERATIONS In 2016, we reclassified our unaudited condensed consolidated financial statements to reflect the operations of our Angola operations as discontinued operations. Summarized financial information for our Angola operations is as follows: September 30, 2016 December 31, 2015 Cash and cash equivalents $ 16,727 $ 8,578 Restricted funds — 22,538 Joint interest and other receivables 161,206 156,599 Other current assets 50,129 64,440 Oil and natural gas properties 1,627,174 1,465,299 Other property and equipment, net 10,107 10,107 Other assets 324 83,490 Assets held for sale $ 1,865,667 $ 1,811,051 Trade and other accounts payable $ 19,060 $ 6,089 Accrued liabilities 122,429 243,369 Other long term liabilities 74 1,381 Liabilities related to assets held for sale $ 141,563 $ 250,839 Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Seismic and exploration costs $ 1,587 $ 3,825 $ 11,997 $ 13,174 Dry hole costs and impairments 1,679 885 3,553 1,496 General and administrative expenses 1,248 4,145 14,256 16,903 Depreciation, depletion and amortization — 622 — 2,478 Gain on the sale of assets (1) — — (4,375 ) — Loss from discontinued operations $ 4,514 $ 9,477 $ 25,431 $ 34,051 (1) Amount represents the gain recognized on the release of the Block 9 letter of credit that was previously written off. |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Based Compensation | NOTE 8. EQUITY–BASED COMPENSATION We grant various forms of equity–based compensation to our employees and directors. These equity–based awards consist of non–qualified stock options (“NQSOs”), restricted stock awards (“RSAs”), stock appreciation rights (“SARs”) and restricted stock units (“RSUs”). NQSOs and RSAs are accounted for as equity awards and compensation cost is recognized on a straight–line basis over the service period and is net of forfeitures. SARs and RSUs are accounted for as liability awards and the fair value of these awards is remeasured at the end of each reporting period based on the current market price of our common stock until settlement. Grants in 2016 Non–Qualified Stock Options In January 2016, we issued 1.1 million NQSOs to two executive officers under the terms of their employee agreements. These NQSOs vest in three equal installments beginning in February 2017 subject to our common stock achieving certain market prices. As these NQSO’s had both service and market conditions, we estimated the fair value of these NQSOs using the Monte Carlo simulation model. The fair value of these NQSOs on the date of grant was $2.0 million. Restricted Stock Awards In January 2016, we issued 0.6 million RSAs to two executive officers under the terms of their employee agreements. These RSAs vest in three equal annual installments beginning in February 2017 subject to our common stock achieving certain market prices. As these RSAs had both service and market conditions, we estimated the fair value of these RSAs using the Monte Carlo simulation model. The fair value of these RSAs on the date of grant was $1.2 million. Restricted Stock Units In February 2016, we granted an aggregate of 3.5 million RSUs to our employees. These RSU’s will vest in three equal annual installments beginning in March 2017 by, at our discretion, either the issuance of our common stock, cash, or a combination thereof. The fair value of these RSUs on the date of grant was $10.4 million. Non–Employee Director Grants In the nine months ended September 30, 2016, we granted a total of 0.2 million shares of our common stock to our non–employee directors as retainer awards. The directors have elected to defer the issuance of this stock. Accordingly, we have recorded a liability for the future issuance of these shares. In addition, we granted 0.4 million RSUs to our new non–employee directors. These RSUs will vest in the first quarter of 2017 by, at our discretion, either the issuance of our common stock, cash or a combination thereof. The fair value of these RSUs on the date of grant was $0.8 million. Compensation Costs The following table presents the compensation costs recognized in our unaudited condensed consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Equity awards $ 5,237 $ 6,714 $ 8,068 $ 19,695 Liability awards 1,339 151 2,984 1,031 Total $ 6,576 $ 6,865 $ 11,052 $ 20,726 These costs are included in “General and administrative expenses” in our unaudited condensed consolidated statements of operations. As of September 30, 2016, there was $27.7 million of unrecognized compensation costs which are expected to be recognized over a weighted average period of 1.8 years. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 9. EARNINGS PER SHARE A reconciliation of the number of shares used for the basic and diluted loss per share computations is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Weighted average common shares outstanding (basic and diluted) 410,245 408,545 409,810 408,525 Anti-dilutive shares excluded from diluted loss per share (1) 10,016 9,862 10,016 9,862 (1) Excludes RSAs, RSUs, NQSOs, the 2.625% convertible senior notes due 2019 and the 3.125% convertible senior notes due 2024 that are potentially issuable as their effect, if included, would have been anti–dilutive. |
Other Supplement Information
Other Supplement Information | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Financial Information [Abstract] | |
Other Supplement Information | NOTE 10. OTHER SUPPLEMENTAL INFORMATION Supplemental noncash transactions were as follows: As of September 30, 2016 2015 Non-cash disclosures: Changes in accrued capital expenditures $ 27,303 $ (117,875 ) Transfer of investment securities to and from restricted funds 82,348 46,049 Accrued liabilities consisted of the following: September 30, December 31, 2016 2015 Costs for additions to oil and natural gas properties $ 64,903 $ 94,576 Interest 26,971 7,843 Bonuses 4,400 12,300 Seismic and other operating costs 9,491 3,611 General expenses 4,856 6,528 Equity-based compensation liabilities 4,426 1,442 Other 763 23 Total accrued liabilities $ 115,810 $ 126,323 |
Other Matters
Other Matters | 9 Months Ended |
Sep. 30, 2016 | |
Other Matters Disclosure [Abstract] | |
Other Matters | NOTE 11. OTHER MATTERS In November 2011, a formal order of investigation was issued by the SEC related to our operations in Angola. We were notified in January 2015 that the SEC’s investigation had concluded and that the SEC did not intend to recommend any enforcement action. We continue to cooperate with the Department of Justice (“DOJ”) with regard to its ongoing parallel investigation, but are unable to predict the outcome of the DOJ’s ongoing investigation or any action that the DOJ may decide to pursue. In February 2016, we initiated a workforce reduction program in response to the pending sale of our Angola properties and prolonged commodity price weakness, which resulted in a reduction of our capital programs and other operations. We recorded a charge for severance expense of $6.9 million. In the three and nine months ended September 30, 2016, we recognized $0.6 million and $6.7 million, respectively, of severance costs associated with our workforce reduction plan. As of September 30, 2016, we had accrued severance of $0.2 million, which we expect will be paid in 2017. In September 2016, we announced that we entered into an amendment to our drilling contract with Rowan (UK) Reliance Limited (“Rowan”) and recorded a charge of $95.9 million, of which $45.0 million was paid in September 2016. This amendment provided for the early termination of our long–term drilling contract for one of their drillships. The drilling contract was originally scheduled to terminate in February 2018, but the amendment provides for a contact termination date in March 2017. This charge is recorded in “Loss on amendment of contract” in our unaudited condensed consolidated statements of operations. As of September 30, 2016, we had accrued costs of $50.9 million, of which $31.3 million was paid in October 2016 and $19.6 million will be paid in March 2017. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12. SUBSEQUENT EVENTS We evaluated subsequent events for appropriate accounting and disclosure through the date these unaudited condensed consolidated financial statements were issued and determined that there were no material items that required recognition or disclosure in our unaudited condensed consolidated financial statements. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. We believe that the presentations and disclosures herein are adequate to make the information not misleading. The unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) for a fair presentation of the interim periods. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in Item 8 of our Annual Report on Form 10–K for the year ended December 31, 2015. Certain reclassifications have been made to prior period amounts to conform to the current period’s presentation. All intercompany accounts and transactions have been eliminated in consolidation. In the Notes to Unaudited Condensed Consolidated Financial Statements, all dollar and share amounts in tabulations are in thousands of dollars and shares, respectively, unless otherwise indicated. |
Correction of Immaterial Errors | Correction of Immaterial Errors Our unaudited condensed consolidated financial statements for the nine months ended September 30, 2016 include an $8.5 million reduction to an impairment charge recorded in 2015. This amount was not deemed material with respect to such prior year or the anticipated results and the trend of earnings for 2016. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014–15, Presentation of Financial Statements – Going Concern In April 2015, the FASB issued ASU No. 2015–03, Interest—Imputation of Interest In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Subtopic 718) In June 2016, the FASB issued ASU 2016–13, Financial Instruments – Credit Losses No other new accounting pronouncements issued or effective during the nine months ended September 30, 2016 have had or are expected to have a material impact on our unaudited condensed consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Fair Value of Held-to-maturity Securities Recorded at Amortized Cost | Our investments in held–to–maturity securities consist of the following: September 30, 2016 December 31, 2015 Current: Corporate securities $ 39,104 $ 492,955 Commercial paper 251,482 604,986 U.S. Treasury securities 41,421 — Certificates of deposit — 20,750 Total 332,007 1,118,691 Noncurrent - U.S. Treasury security 9,047 — Total $ 341,054 $ 1,118,691 |
Schedule of Investments Recorded in Unaudited Condensed Consolidated Balance Sheet | These investments are recorded in our unaudited condensed consolidated balance sheet as follows: September 30, 2016 December 31, 2015 Cash and cash equivalents $ 187,880 $ 38,420 Restricted funds — 194,277 Investments 144,127 885,994 Other assets 9,047 — $ 341,054 $ 1,118,691 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy of Assets Measured at Fair value on a Recurring basis | The following tables presents the fair value hierarchy for our assets that are required to be measured at fair value on a recurring basis: Fair Value Measurements at the End of the Reporting Period Fair Value Level 1 Level 2 Level 3 As of September 30, 2016: Held-to-maturity investments: Corporate bonds $ 39,104 $ — $ 39,104 $ — Commercial paper 251,482 — 251,482 — U.S. Treasury securities 50,468 — 50,468 — Total $ 341,054 $ — $ 341,054 $ — As of December 31, 2015: Held-to-maturity investments: Corporate bonds $ 492,955 $ — $ 492,955 $ — Commercial paper 604,986 — 604,986 — Certificates of deposit 20,750 — 20,750 — Total $ 1,118,691 $ — $ 1,118,691 $ — |
Oil and Natural Gas Properties
Oil and Natural Gas Properties (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Oil and Natural Gas Properties | Oil and natural gas properties consist of the following: September 30, 2016 December 31, 2015 Proved oil and natural gas properties: Well and development costs $ 105,731 $ 71,463 Accumulated depletion (13,242 ) — Total proved oil and natural gas properties 92,489 71,463 Unproved oil and natural gas properties: Oil and natural gas leasehold: Oil and natural gas leaseholds with carrying value greater than $1.0 million 255,204 305,270 Oil and natural gas leasehold with carrying value less than $1.0 million 69,854 77,706 Accumulated valuation allowance (170,357 ) (175,963 ) 154,701 207,013 Exploration wells in process 806,476 615,258 Total unproved oil and natural gas properties 961,177 822,271 Total oil and natural gas properties, net $ 1,053,666 $ 893,734 |
Schedule of Net Changes in Capitalized Exploration Well Costs | The following tables reflect the net changes in and the cumulative costs of capitalized exploration well costs (excluding any related leasehold costs): September 30, 2016 December 31, 2015 Beginning of period $ 615,258 $ 330,099 Additions to capitalized exploration Exploration well costs 311,154 285,118 Capitalized interest 33,460 24,161 Amounts charged to expense (1) (153,396 ) (24,120 ) End of period $ 806,476 $ 615,258 (1) Amounts represent dry hole costs related to exploration wells drilled in the U.S. Gulf of Mexico which did not encounter commercial hydrocarbons. Of the $153.4 million in 2016, $149.5 million related to the Goodfellow #1 exploration well and sidetrack. |
Schedule of Cumulative Costs of Capitalized Exploration Well Costs | September 30, 2016 December 31, 2015 Cumulative costs: Exploration well costs $ 734,452 $ 576,694 Capitalized interest 72,024 38,564 $ 806,476 $ 615,258 Well costs capitalized for a period greater than one year after completion of drilling (included in table above) $ 633,827 $ 351,753 |
Long-term Debt, Net (Tables)
Long-term Debt, Net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Long Term Debt [Abstract] | |
Schedule of Long-term Debt, Net | Long–term debt, net consisted of the following: September 30, 2016 December 31, 2015 2.625% convertible senior notes due 2019: Principal outstanding $ 1,380,000 $ 1,380,000 Unamortized discount (1) (213,820 ) (258,565 ) Carrying amount 1,166,180 1,121,435 3.125% convertible senior notes due 2024: Principal outstanding 1,300,000 1,300,000 Unamortized discount and debt issuance costs (2) (410,838 ) (439,540 ) Carrying amount 889,162 860,460 Total $ 2,055,342 $ 1,981,895 (1) (2) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Financial Information for Angola Operations | Summarized financial information for our Angola operations is as follows: September 30, 2016 December 31, 2015 Cash and cash equivalents $ 16,727 $ 8,578 Restricted funds — 22,538 Joint interest and other receivables 161,206 156,599 Other current assets 50,129 64,440 Oil and natural gas properties 1,627,174 1,465,299 Other property and equipment, net 10,107 10,107 Other assets 324 83,490 Assets held for sale $ 1,865,667 $ 1,811,051 Trade and other accounts payable $ 19,060 $ 6,089 Accrued liabilities 122,429 243,369 Other long term liabilities 74 1,381 Liabilities related to assets held for sale $ 141,563 $ 250,839 Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Seismic and exploration costs $ 1,587 $ 3,825 $ 11,997 $ 13,174 Dry hole costs and impairments 1,679 885 3,553 1,496 General and administrative expenses 1,248 4,145 14,256 16,903 Depreciation, depletion and amortization — 622 — 2,478 Gain on the sale of assets (1) — — (4,375 ) — Loss from discontinued operations $ 4,514 $ 9,477 $ 25,431 $ 34,051 (1) Amount represents the gain recognized on the release of the Block 9 letter of credit that was previously written off. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Compensation Costs Recognized in Unaudited Condensed Consolidated Statements of Operations | The following table presents the compensation costs recognized in our unaudited condensed consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Equity awards $ 5,237 $ 6,714 $ 8,068 $ 19,695 Liability awards 1,339 151 2,984 1,031 Total $ 6,576 $ 6,865 $ 11,052 $ 20,726 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted Loss Per Share Computations | A reconciliation of the number of shares used for the basic and diluted loss per share computations is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Weighted average common shares outstanding (basic and diluted) 410,245 408,545 409,810 408,525 Anti-dilutive shares excluded from diluted loss per share (1) 10,016 9,862 10,016 9,862 (1) Excludes RSAs, RSUs, NQSOs, the 2.625% convertible senior notes due 2019 and the 3.125% convertible senior notes due 2024 that are potentially issuable as their effect, if included, would have been anti–dilutive. |
Other Supplement Information (T
Other Supplement Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Financial Information [Abstract] | |
Schedule of supplemental noncash transactions | Supplemental noncash transactions were as follows: As of September 30, 2016 2015 Non-cash disclosures: Changes in accrued capital expenditures $ 27,303 $ (117,875 ) Transfer of investment securities to and from restricted funds 82,348 46,049 |
Schedule of accrued liabilities | Accrued liabilities consisted of the following: September 30, December 31, 2016 2015 Costs for additions to oil and natural gas properties $ 64,903 $ 94,576 Interest 26,971 7,843 Bonuses 4,400 12,300 Seismic and other operating costs 9,491 3,611 General expenses 4,856 6,528 Equity-based compensation liabilities 4,426 1,442 Other 763 23 Total accrued liabilities $ 115,810 $ 126,323 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016USD ($)segment | Dec. 31, 2015USD ($) | Aug. 31, 2015 | |
Description of Operations | |||
Number of reportable segment | segment | 1 | ||
Reduction of impairment charges recorded in 2015 | $ 8.5 | ||
New Accounting Pronouncement Early Adoption Effect | |||
Description of Operations | |||
Reclassification of unamortized debt issuance costs | $ 32.9 | ||
Discontinued operations held for sale | |||
Description of Operations | |||
Termination of agreement | 2016-08 | ||
Discontinued operations held for sale | Block 20, offshore Angola | CIE Angola Block 20 Ltd | |||
Description of Operations | |||
Percentage of working interest acquired | 40.00% | ||
Discontinued operations held for sale | Block 21, offshore Angola | CIE Angola Block 21 Ltd | |||
Description of Operations | |||
Percentage of working interest acquired | 40.00% |
Investments - Additional Inform
Investments - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Held-to-maturity securities unrecognized holding gains | $ 0 |
Held-to-maturity securities unrecognized holding losses | $ 0 |
Investments - Schedule of Fair
Investments - Schedule of Fair Value of Held-to-maturity Securities Recorded at Amortized Cost (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Fair market value, Current | $ 332,007 | $ 1,118,691 |
Fair market value | 341,054 | 1,118,691 |
Corporate securities | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Fair market value, Current | 39,104 | 492,955 |
U.S. Treasury securities | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Fair market value, Current | 41,421 | |
Fair market value, Noncurrent | 9,047 | |
Commercial paper | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Fair market value, Current | $ 251,482 | 604,986 |
Certificates of deposit | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Fair market value, Current | $ 20,750 |
Investments - Schedule of Inves
Investments - Schedule of Investments Recorded in Unaudited Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Fair market value | $ 341,054 | $ 1,118,691 |
Other assets | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Fair market value | 9,047 | |
Cash and cash equivalents | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Fair market value | 187,880 | 38,420 |
Restricted funds | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Fair market value | 194,277 | |
Investments | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Fair market value | $ 144,127 | $ 885,994 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy of Assets Measured at Fair value on a Recurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity investments, Fair Value | $ 341,054 | $ 1,118,691 |
Recurring basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity investments, Fair Value | 341,054 | 1,118,691 |
Level 2 | Recurring basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity investments, Fair Value | 341,054 | 1,118,691 |
Corporate securities | Recurring basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity investments, Fair Value | 39,104 | 492,955 |
Corporate securities | Level 2 | Recurring basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity investments, Fair Value | 39,104 | 492,955 |
Commercial paper | Recurring basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity investments, Fair Value | 251,482 | 604,986 |
Commercial paper | Level 2 | Recurring basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity investments, Fair Value | 251,482 | 604,986 |
U.S. Treasury securities | Recurring basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity investments, Fair Value | 50,468 | |
U.S. Treasury securities | Level 2 | Recurring basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity investments, Fair Value | $ 50,468 | |
Certificates of deposit | Recurring basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity investments, Fair Value | 20,750 | |
Certificates of deposit | Level 2 | Recurring basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity investments, Fair Value | $ 20,750 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
2.625% convertible senior notes due 2019 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate (as a percent) | 2.625% | |
Convertible senior notes fair value | $ 705.5 | $ 793.5 |
Carrying value of convertible senior notes | $ 1,166.2 | 1,121.4 |
3.125% convertible senior notes due 2024 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate (as a percent) | 3.125% | |
Convertible senior notes fair value | $ 502.1 | 640.2 |
Carrying value of convertible senior notes | $ 889.2 | $ 860.5 |
Oil and Natural Gas Propertie34
Oil and Natural Gas Properties - Schedule of Oil and Natural Gas Properties (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant, and Equipment | ||
Well and development costs | $ 105,731 | $ 71,463 |
Accumulated depletion | (13,242) | 0 |
Total proved oil and natural gas properties | 92,489 | 71,463 |
Oil and natural gas leaseholds with carrying value greater than $1.0 million | 255,204 | 305,270 |
Oil and natural gas leasehold with carrying value less than $1.0 million | 69,854 | 77,706 |
Accumulated valuation allowance | (170,357) | (175,963) |
Total oil and gas leasehold | 154,701 | 207,013 |
Total unproved properties | 961,177 | 822,271 |
Total oil and gas properties, net | 1,053,666 | 893,734 |
Exploration wells in process | ||
Property, Plant, and Equipment | ||
Exploration wells in process | $ 806,476 | $ 615,258 |
Oil and Natural Gas Propertie35
Oil and Natural Gas Properties - Schedule of Unproved Oil and Natural Gas Properties (Parenthetical) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Unproved property acquisition costs, net of valuation allowance | |
Upper limit of individual leasehold | $ 1 |
Lower limit of individual leasehold | $ 1 |
Oil and Natural Gas Propertie36
Oil and Natural Gas Properties - Schedule of Net Changes in Capitalized Exploration Well Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | |||
Beginning of period | $ 615,258 | $ 330,099 | |
Amounts charged to expense | [1] | (153,396) | (24,120) |
End of period | 806,476 | 615,258 | |
Exploration well costs | |||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | |||
Beginning of period | 576,694 | ||
Additions to capitalized exploration | 311,154 | 285,118 | |
Amounts charged to expense | (149,500) | ||
End of period | 734,452 | 576,694 | |
Capitalized interest | |||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | |||
Beginning of period | 38,564 | ||
Additions to capitalized exploration | 33,460 | 24,161 | |
End of period | $ 72,024 | $ 38,564 | |
[1] | Amounts represent dry hole costs related to exploration wells drilled in the U.S. Gulf of Mexico which did not encounter commercial hydrocarbons. Of the $153.4 million in 2016, $149.5 million related to the Goodfellow #1 exploration well and sidetrack. |
Oil and Natural Gas Propertie37
Oil and Natural Gas Properties - Schedule of Net Changes in Capitalized Exploration Well Costs (Parenthetical) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | |||
Amounts charged to expense | [1] | $ 153,396 | $ 24,120 |
Exploration well costs | |||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | |||
Amounts charged to expense | 149,500 | ||
U.S. Gulf of Mexico | |||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | |||
Amounts charged to expense | $ 153,400 | ||
[1] | Amounts represent dry hole costs related to exploration wells drilled in the U.S. Gulf of Mexico which did not encounter commercial hydrocarbons. Of the $153.4 million in 2016, $149.5 million related to the Goodfellow #1 exploration well and sidetrack. |
Oil and Natural Gas Propertie38
Oil and Natural Gas Properties - Schedule of Cumulative Costs of Capitalized Exploration Well Costs (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | |||
Cumulative costs | $ 806,476 | $ 615,258 | $ 330,099 |
Well costs capitalized for a period greater than one year after completion of drilling | 633,827 | 351,753 | |
Exploration well costs | |||
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | |||
Cumulative costs | 734,452 | 576,694 | |
Capitalized interest | |||
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | |||
Cumulative costs | $ 72,024 | $ 38,564 |
Long-term Debt, Net - Schedule
Long-term Debt, Net - Schedule of Long-term Debt, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt instrument | ||
Carrying amount | $ 2,055,342 | $ 1,981,895 |
2.625% convertible senior notes due 2019 | ||
Debt instrument | ||
Principal outstanding | 1,380,000 | 1,380,000 |
Unamortized discount | (213,820) | (258,565) |
Carrying amount | 1,166,180 | 1,121,435 |
3.125% convertible senior notes due 2024 | ||
Debt instrument | ||
Principal outstanding | 1,300,000 | 1,300,000 |
Unamortized discount and debt issuance costs | (410,838) | (439,540) |
Carrying amount | $ 889,162 | $ 860,460 |
Long-term Debt, Net - Schedul40
Long-term Debt, Net - Schedule of Long-term Debt, Net (Parenthetical) (Details) | Sep. 30, 2016 |
2.625% convertible senior notes due 2019 | |
Debt instrument | |
Effective interest rate | 8.40% |
3.125% convertible senior notes due 2024 | |
Debt instrument | |
Effective interest rate | 8.97% |
Long-term Debt, Net - Additiona
Long-term Debt, Net - Additional Information (Details) - GOM#1 - Facility Agreement - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Jun. 30, 2016 | |
Debt instrument | ||
Maximum borrowing capacity | $ 150,000,000 | |
Write off of debt issuance cost | $ 3,300,000 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Information for Angola Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Dry hole costs and impairments | $ 48,667 | $ 10,880 | $ 202,182 | $ 38,310 | ||
Loss from discontinued operations | 4,514 | 9,477 | 25,431 | 34,051 | ||
Angola operations | Discontinued operations | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Cash and cash equivalents | 16,727 | 16,727 | $ 8,578 | |||
Restricted funds | 22,538 | |||||
Joint interest and other receivables | 161,206 | 161,206 | 156,599 | |||
Other current assets | 50,129 | 50,129 | 64,440 | |||
Oil and natural gas properties | 1,627,174 | 1,627,174 | 1,465,299 | |||
Other property and equipment, net | 10,107 | 10,107 | 10,107 | |||
Other assets | 324 | 324 | 83,490 | |||
Assets held for sale | 1,865,667 | 1,865,667 | 1,811,051 | |||
Trade and other accounts payable | 19,060 | 19,060 | 6,089 | |||
Accrued liabilities | 122,429 | 122,429 | 243,369 | |||
Other long term liabilities | 74 | 74 | 1,381 | |||
Liabilities related to assets held for sale | 141,563 | 141,563 | $ 250,839 | |||
Seismic and exploration costs | 1,587 | 3,825 | 11,997 | 13,174 | ||
Dry hole costs and impairments | 1,679 | 885 | 3,553 | 1,496 | ||
General and administrative expenses | 1,248 | 4,145 | 14,256 | 16,903 | ||
Depreciation, depletion and amortization | 622 | 2,478 | ||||
Gain on the sale of assets | [1] | (4,375) | ||||
Loss from discontinued operations | $ 4,514 | $ 9,477 | $ 25,431 | $ 34,051 | ||
[1] | Amount represents the gain recognized on the release of the Block 9 letter of credit that was previously written off. |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) shares in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | |
Feb. 29, 2016USD ($)Installmentshares | Jan. 31, 2016USD ($)Installmentshares | Sep. 30, 2016USD ($)shares | |
Equity Based Compensation | |||
Unrecognized compensation | $ | $ 27.7 | ||
Period for recognition of unrecognized compensation cost | 1 year 9 months 18 days | ||
Non-qualified stock options | |||
Equity Based Compensation | |||
Number of equal vesting installments | Installment | 3 | ||
Grant date fair value of options | $ | $ 2 | ||
Non-qualified stock options | Vesting yearly installment one | |||
Equity Based Compensation | |||
Vesting month and year | 2017-02 | ||
Non-qualified stock options | Two executive officers | |||
Equity Based Compensation | |||
Granted (in shares) | shares | 1.1 | ||
Restricted stock awards | |||
Equity Based Compensation | |||
Number of equal vesting installments | Installment | 3 | ||
Grant date fair value | $ | $ 1.2 | ||
Restricted stock awards | Vesting yearly installment one | |||
Equity Based Compensation | |||
Vesting month and year | 2017-02 | ||
Restricted stock awards | Two executive officers | |||
Equity Based Compensation | |||
Granted (in shares) | shares | 0.6 | ||
Restricted stock units | |||
Equity Based Compensation | |||
Number of equal vesting installments | Installment | 3 | ||
Granted (in shares) | shares | 3.5 | ||
Grant date fair value | $ | $ 10.4 | ||
Restricted stock units | Vesting yearly installment one | |||
Equity Based Compensation | |||
Vesting month and year | 2017-03 | ||
Restricted stock units | Non-employee director grants | |||
Equity Based Compensation | |||
Granted (in shares) | shares | 0.4 | ||
Grant date fair value | $ | $ 0.8 | ||
Retainer awards | Non-employee director grants | Common Stock | |||
Equity Based Compensation | |||
Granted (in shares) | shares | 0.2 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Compensation Costs Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Equity Based Compensation | ||||
Compensation costs | $ 6,576 | $ 6,865 | $ 11,052 | $ 20,726 |
Equity awards | ||||
Equity Based Compensation | ||||
Compensation costs | 5,237 | 6,714 | 8,068 | 19,695 |
Liability awards | ||||
Equity Based Compensation | ||||
Compensation costs | $ 1,339 | $ 151 | $ 2,984 | $ 1,031 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted Loss Per Share Computations (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding (basic and diluted) | 410,245 | 408,545 | 409,810 | 408,525 |
Anti-dilutive shares excluded from diluted loss per share | 10,016 | 9,862 | 10,016 | 9,862 |
Earnings Per Share - Schedule46
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted Loss Per Share Computations (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2016 | |
2.625% convertible senior notes due 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Interest rate (as a percent) | 2.625% |
Debt instrument maturity year | 2,019 |
3.125% convertible senior notes due 2024 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Interest rate (as a percent) | 3.125% |
Debt instrument maturity year | 2,024 |
Other Supplement Information -
Other Supplement Information - Schedule of Supplemental Noncash Transactions (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | ||
Changes in accrued capital expenditures | $ 27,303 | $ (117,875) |
Transfer of investment securities to and from restricted funds | $ 82,348 | $ 46,049 |
Other Supplement Information 48
Other Supplement Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts Payable And Accrued Liabilities Current [Abstract] | ||
Costs for additions to oil and natural gas properties | $ 64,903 | $ 94,576 |
Interest | 26,971 | 7,843 |
Bonuses | 4,400 | 12,300 |
Seismic and other operating costs | 9,491 | 3,611 |
General expenses | 4,856 | 6,528 |
Equity-based compensation liabilities | 4,426 | 1,442 |
Other | 763 | 23 |
Total accrued liabilities | $ 115,810 | $ 126,323 |
Other Matters - Additional Info
Other Matters - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Oct. 31, 2016 | Feb. 29, 2016 | Sep. 30, 2016 | Sep. 30, 2016 |
Other Commitments [Line Items] | |||||
Severance costs associated with workforce reduction plan | $ 6,900 | $ 600 | $ 6,700 | ||
Accrued severance costs | 200 | 200 | |||
Loss on amendment of contract | $ 95,908 | 95,908 | |||
Accrued contract amendment costs | 50,908 | ||||
Contract Termination | |||||
Other Commitments [Line Items] | |||||
Loss on amendment of contract | 95,908 | ||||
Payment of loss on contract termination | $ 45,000 | ||||
Contract termination date | Mar. 31, 2017 | ||||
Accrued contract amendment costs | $ 50,908 | ||||
Contract Termination | Subsequent Event | |||||
Other Commitments [Line Items] | |||||
Payment of loss on contract termination | $ 31,300 | ||||
Contract Termination | Scenario Forecast | |||||
Other Commitments [Line Items] | |||||
Payable of loss on contract termination | $ 19,600 |