Cobalt International Energy 10-Q 4 Nov 16 2016 Q3 Quarterly report Financial data

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