Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information | ' |
Entity Registrant Name | 'Bonanza Creek Energy, Inc. |
Entity Central Index Key | '0001509589 |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--12-31 |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 40,279,049 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $17,368,896 | $4,267,667 |
Accounts receivable: | ' | ' |
Oil and gas sales | 62,937,148 | 38,600,436 |
Joint interest and other | 13,228,686 | 5,484,620 |
Prepaid expenses and other | 2,305,269 | 3,031,815 |
Inventory of oilfield equipment | 5,389,949 | 1,740,934 |
Derivative asset | 620,446 | 2,178,064 |
Total current assets | 101,850,394 | 55,303,536 |
OIL AND GAS PROPERTIES-using the successful efforts method of accounting: | ' | ' |
Proved properties | 1,155,502,451 | 811,000,239 |
Unproved properties | 44,444,030 | 72,928,364 |
Wells in progress | 86,499,729 | 75,031,806 |
OIL AND GAS PROPERTIES-using the successful efforts method of accounting | 1,286,446,210 | 958,960,409 |
Less: accumulated depreciation, depletion and amortization | -175,678,611 | -89,669,725 |
OIL AND GAS PROPERTIES-net, using the successful efforts method of accounting | 1,110,767,599 | 869,290,684 |
NATURAL GAS PLANT | 75,301,626 | 73,087,603 |
Less: accumulated depreciation | -5,269,290 | -3,403,817 |
NATURAL GAS PLANT-net | 70,032,336 | 69,683,786 |
OTHER PROPERTY AND EQUIPMENT | 8,784,996 | 5,089,795 |
Less: accumulated depreciation | -2,237,696 | -890,093 |
OTHER PROPERTY AND EQUIPMENT-net | 6,547,300 | 4,199,702 |
OIL AND GAS PROPERTIES HELD FOR SALE, LESS ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION | 441,595 | 582,388 |
LONG-TERM DERIVATIVE ASSET | 480,874 | ' |
OTHER ASSETS, net | 9,651,725 | 3,429,711 |
TOTAL ASSETS | 1,299,771,823 | 1,002,489,807 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable and accrued expenses | 96,917,401 | 72,850,272 |
Oil and gas revenue distribution payable | 27,292,365 | 12,552,655 |
Contractual obligation for land acquisition | 11,999,877 | 11,999,877 |
Derivative liability | 9,613,257 | 5,200,202 |
Total current liabilities | 145,822,900 | 102,603,006 |
LONG-TERM LIABILITIES: | ' | ' |
Long-term debt | 338,500,000 | 158,000,000 |
Contractual obligation for land acquisition | 21,842,731 | 33,271,631 |
Ad valorem taxes | 18,398,927 | 11,179,370 |
Derivative liability | 294,440 | 1,208,106 |
Deferred income taxes, net | 137,778,212 | 110,376,606 |
Asset retirement obligations | 8,652,597 | 7,333,584 |
TOTAL LIABILITIES | 671,289,807 | 423,972,303 |
COMMITMENTS AND CONTINGENCIES (Note 7) | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock, $.001 par value, 25,000,000 shares authorized, 0 outstanding | ' | ' |
Common stock, $.001 par value, 225,000,000 shares authorized, 40,279,049 and 40,115,536 issued and outstanding, respectively | 40,279 | 40,116 |
Additional paid-in capital | 525,637,560 | 519,425,356 |
Retained earnings | 102,804,177 | 59,052,032 |
Total stockholders' equity | 628,482,016 | 578,517,504 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,299,771,823 | $1,002,489,807 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 225,000,000 | 225,000,000 |
Common stock, shares issued | 40,279,049 | 40,115,536 |
Common stock, shares outstanding | 40,279,049 | 40,115,536 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
NET REVENUES: | ' | ' | ' | ' |
Oil and gas sales | $125,973,199 | $58,327,823 | $288,797,684 | $157,613,348 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Lease operating | 12,957,541 | 8,444,403 | 36,986,307 | 22,506,131 |
Severance and ad valorem taxes | 8,085,512 | 3,021,860 | 18,250,331 | 9,387,094 |
Exploration | 2,099,415 | 6,359,222 | 3,524,111 | 9,563,876 |
Depreciation, depletion and amortization | 36,750,003 | 17,715,763 | 89,629,794 | 41,751,296 |
Impairment of proved properties | ' | 268,500 | ' | 268,500 |
General and administrative (including $2,652,476, $1,445,910, $9,715,764, and $2,912,248, respectively, of stock-based compensation) | 13,811,237 | 9,335,266 | 40,260,147 | 22,410,369 |
Total operating expenses | 73,703,708 | 45,145,014 | 188,650,690 | 105,887,266 |
INCOME FROM OPERATIONS | 52,269,491 | 13,182,809 | 100,146,994 | 51,726,082 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
Other (loss) | -53,525 | -90,640 | -3,167 | -82,930 |
Interest expense | -6,180,497 | -1,125,634 | -14,012,990 | -2,341,843 |
Unrealized gain (loss) in fair value of commodity derivatives | -10,016,608 | -9,007,034 | -4,576,133 | 2,985,356 |
Realized (loss) on settled commodity derivatives | -6,872,437 | -92,812 | -9,866,372 | -1,173,619 |
Total other (loss) | -23,123,067 | -10,316,120 | -28,458,662 | -613,036 |
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES | 29,146,424 | 2,866,689 | 71,688,332 | 51,113,046 |
Income tax expense | -11,221,296 | -1,222,450 | -27,607,420 | -19,797,360 |
INCOME FROM CONTINUING OPERATIONS | 17,925,128 | 1,644,239 | 44,080,912 | 31,315,686 |
DISCONTINUED OPERATIONS (Note 3) | ' | ' | ' | ' |
(Loss) from operations associated with oil and gas properties held for sale | -233,584 | -1,410,595 | -534,581 | -791,394 |
Gain on sale of oil and gas properties | ' | 4,279,998 | ' | 4,279,998 |
Income tax (expense) benefit | 89,877 | -1,092,755 | 205,814 | -1,331,147 |
Income (loss) associated with oil and gas properties held for sale | -143,707 | 1,776,648 | -328,767 | 2,157,457 |
NET INCOME | 17,781,421 | 3,420,887 | 43,752,145 | 33,473,143 |
COMPREHENSIVE INCOME | $17,781,421 | $3,420,887 | $43,752,145 | $33,473,143 |
BASIC AND DILUTED INCOME PER SHARE | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.44 | $0.04 | $1.10 | $0.79 |
Income (loss) from discontinued operations (in dollars per share) | ' | $0.05 | ($0.01) | $0.06 |
Net income per common share (in dollars per share) | $0.44 | $0.09 | $1.09 | $0.85 |
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK | ' | ' | ' | ' |
Basic (in shares) (Note 10) | 40,266,516 | 39,477,101 | 40,209,752 | 39,476,133 |
Diluted (in shares) (Note 10) | 40,321,088 | 39,477,101 | 40,266,031 | 39,476,133 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
General and administrative, stock compensation | $2,652,476 | $1,445,910 | $9,715,764 | $2,912,248 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $43,752,145 | $33,473,143 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation, depletion and amortization | 89,896,756 | 43,900,774 |
Impairment of oil and gas properties | ' | 1,916,690 |
Deferred income taxes | 27,401,606 | 20,556,874 |
Stock-based compensation | 9,715,764 | 2,912,248 |
Exploration | 1,688,036 | 7,378,612 |
Amortization of deferred financing costs | 1,120,052 | 501,315 |
Accretion of contractual obligation for land acquisition | 570,977 | ' |
Valuation (increase) decrease in commodity derivatives | 4,576,133 | -2,985,356 |
Gain on sale of oil and gas properties | ' | -4,279,998 |
Other | ' | 70,563 |
(Increase) decrease in operating assets: | ' | ' |
Accounts receivable | -32,080,778 | -18,152,964 |
Prepaid expenses and other assets | 726,546 | 352,541 |
(Decrease) increase in operating liabilities: | ' | ' |
Accounts payable and accrued liabilities | 33,960,797 | 7,149,501 |
Settlement of asset retirement obligations | -73,358 | -146,125 |
Net cash provided by operating activities | 181,254,676 | 92,647,818 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Proceeds from sale of oil and gas properties | ' | 5,212,000 |
Acquisition of oil and gas properties | -10,968,636 | -12,809,268 |
Payments of contractual obligations | -11,999,877 | ' |
Exploration and development of oil and gas properties | -306,685,389 | -183,357,438 |
Natural gas plant capital expenditures | -4,458,881 | -12,009,040 |
Decrease in restricted cash | 79,478 | 252,580 |
Additions to property and equipment-non oil and gas | -3,695,201 | -2,203,315 |
Net cash (used) in investing activities | -337,728,506 | -204,914,481 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Increase in bank revolving credit | 72,000,000 | 115,700,000 |
Payment on bank revolving credit | -191,500,000 | ' |
Proceeds from sale of senior notes | 300,000,000 | ' |
Offering costs related to sale of senior notes | -7,342,526 | ' |
Payment of employee tax withholdings in exchange for the return of common stock | -3,503,397 | ' |
Deferred financing costs | -79,018 | -677,428 |
Net cash provided by financing activities | 169,575,059 | 115,022,572 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 13,101,229 | 2,755,909 |
CASH AND CASH EQUIVALENTS: | ' | ' |
Beginning of period | 4,267,667 | 2,089,674 |
End of period | 17,368,896 | 4,845,583 |
SUPPLEMENTAL CASH FLOW DISCLOSURE: | ' | ' |
Cash paid for interest | 2,854,886 | 1,224,331 |
Cash paid for income taxes | 100,000 | 185,765 |
Changes in working capital related to drilling expenditures, natural gas plant expenditures, and property acquisition | 12,065,599 | 36,857,282 |
Contractual obligation for land acquisition | $33,842,608 | $45,081,183 |
ORGANIZATION_AND_BUSINESS
ORGANIZATION AND BUSINESS: | 9 Months Ended |
Sep. 30, 2013 | |
ORGANIZATION AND BUSINESS: | ' |
ORGANIZATION AND BUSINESS: | ' |
1. ORGANIZATION AND BUSINESS: | |
Bonanza Creek Energy, Inc. (the “Company” or “BCEI”) is engaged primarily in acquiring, developing, exploiting and producing oil and gas properties. As of September 30, 2013, the Company’s assets and operations are concentrated primarily in the Wattenberg Field in the Rocky Mountains and in Southern Arkansas. |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION: | 9 Months Ended |
Sep. 30, 2013 | |
BASIS OF PRESENTATION: | ' |
BASIS OF PRESENTATION: | ' |
2. BASIS OF PRESENTATION: | |
These statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The quarterly financial statements included herein do not necessarily include all of the disclosures as may be required under generally accepted accounting principles. The readers of these quarterly financial statements should also read the audited consolidated financial statements and related notes of BCEI that were included in BCEI’s Annual Report on Form 10-K filed with the SEC on March 15, 2013. These consolidated financial statements include all of the adjustments, which, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations. All such adjustments are of a normal recurring nature only. The results of operations for the quarterly periods are not necessarily indicative of the results to be expected for the full fiscal year. | |
Principles of Consolidation—The consolidated balance sheets include the accounts of the Company and its wholly owned subsidiaries, Bonanza Creek Energy Operating Company, LLC, Bonanza Creek Energy Resources, LLC, Holmes Eastern Company, LLC, Bonanza Creek Energy Upstream LLC, and Bonanza Creek Energy Midstream, LLC. All significant intercompany accounts and transactions have been eliminated. | |
Oil and Gas Producing Activities—The Company follows the successful efforts method of accounting for its oil and gas properties. Under this method of accounting, all property acquisition costs and costs of exploratory and development wells will be capitalized at cost when incurred, pending determination of whether the well has found proved reserves. If an exploratory well has not found proved reserves, the costs of drilling the well and other associated costs will be charged to expense. The costs of development wells will be capitalized whether productive or nonproductive. Costs incurred to maintain wells and related equipment and lease and well operating costs are charged to expense as incurred. Gains and losses arising from sales of properties will be included in income. However, sales that do not significantly affect a field’s unit-of-production depletion rate will be accounted for as normal retirements with no gain or loss recognized. Geological and geophysical costs of exploratory prospects and the costs of carrying and retaining unproved properties are expensed as incurred. | |
Depletion, depreciation and amortization (“DD&A”) of capitalized costs of proved oil and gas properties are provided for on a field-by-field basis using the units of production method based upon proved reserves. The computation of DD&A takes into consideration the anticipated proceeds from equipment salvage and the Company’s expected cost to abandon its well interests. | |
The Company assesses its proved oil and gas properties for impairment whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. The impairment test compares undiscounted future net cash flows to the assets’ net book value. If the net capitalized costs exceed future net cash flows, then the cost of the property will be written down to “fair value.” Fair value for oil and natural gas properties is generally determined based on discounted future net cash flows. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS: | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
DISCONTINUED OPERATIONS: | ' | |||||||||||||
DISCONTINUED OPERATIONS: | ' | |||||||||||||
3. DISCONTINUED OPERATIONS: | ||||||||||||||
During June of 2012, the Company began marketing, with an intent to sell, all of its oil and gas properties in California. Assets are classified as held for sale when the Company commits to a plan to sell the assets and there is reasonable certainty that the sale will take place within one year. The Company determined that its intent to sell these properties qualifies for discontinued operations. The majority of these assets were sold in 2012, while the carrying amounts of the major classes of assets and liabilities related to the operation of the remaining property that is held for sale as of September 30, 2013 and December 31, 2012 are presented below: | ||||||||||||||
As of September 30, | As of December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
PROPERTY AND EQUIPMENT: | ||||||||||||||
Oil and gas properties, successful efforts method: | ||||||||||||||
Proved properties | $ | 1,721,265 | $ | 1,721,265 | ||||||||||
Unproved properties | 629 | 629 | ||||||||||||
Wells in progress | 100,936 | 39,245 | ||||||||||||
Total property and equipment | 1,822,830 | 1,761,139 | ||||||||||||
Less accumulated depletion and depreciation | (1,381,235 | ) | (1,178,751 | ) | ||||||||||
Net property and equipment | $ | 441,595 | $ | 582,388 | ||||||||||
The current assets and liabilities related to the properties are immaterial. Total revenues and costs and expenses, and the income (loss) associated with the operation of the oil and gas properties held for sale are presented below. | ||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30 | September 30 | September 30 | September 30 | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
NET REVENUES: | ||||||||||||||
Oil and gas sales | $ | 403,184 | $ | 1,274,906 | $ | 1,277,968 | $ | 5,000,665 | ||||||
OPERATING EXPENSES: | ||||||||||||||
Lease operating | 573,668 | 451,795 | 1,478,992 | 1,853,085 | ||||||||||
Severance and ad valorem taxes | 382 | 8,809 | 1,058 | 124,298 | ||||||||||
Exploration | 400 | 6,219 | 65,537 | 17,008 | ||||||||||
Depreciation, depletion and amortization | 62,318 | 570,488 | 266,962 | 2,149,478 | ||||||||||
Impairment of proved properties | — | 1,648,190 | — | 1,648,190 | ||||||||||
TOTAL COSTS AND EXPENSES | 636,768 | 2,685,501 | 1,812,549 | 5,792,059 | ||||||||||
(LOSS) FROM OPERATIONS ASSOCIATED WITH OIL AND GAS PROPERTIES HELD FOR SALE | ||||||||||||||
$ | (233,584 | ) | $ | (1,410,595 | ) | $ | (534,581 | ) | $ | (791,394 | ) |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS: | 9 Months Ended |
Sep. 30, 2013 | |
RECENT ACCOUNTING PRONOUNCEMENTS: | ' |
RECENT ACCOUNTING PRONOUNCEMENTS: | ' |
4. RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the FASB issued Update No. 2013-11—Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). The update provides clarification on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The update is effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The Company has not yet evaluated the impact of the update on its financial statements. |
ACCOUNTS_PAYABLE_AND_ACCRUED_E
ACCOUNTS PAYABLE AND ACCRUED EXPENSES: | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES: | ' | |||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES: | ' | |||||||
5. ACCOUNTS PAYABLE AND ACCRUED EXPENSES: | ||||||||
Accounts payable and accrued expenses contain the following: | ||||||||
As of September 30, | As of December 31, | |||||||
2013 | 2012 | |||||||
Drilling and completion costs | $ | 63,764,281 | $ | 51,698,682 | ||||
Accounts payable | 3,829,146 | 10,049,131 | ||||||
Accrued general and administrative cost | 8,134,689 | 5,079,462 | ||||||
Lease operating expense | 4,947,900 | 2,824,300 | ||||||
Accrued reclamation cost | 186,587 | 400,000 | ||||||
Accrued interest | 9,686,569 | 219,494 | ||||||
Accrued oil and gas hedging | 2,434,858 | 238,365 | ||||||
Production taxes and other | 3,933,371 | 2,340,838 | ||||||
$ | 96,917,401 | $ | 72,850,272 |
LONGTERM_DEBT
LONG-TERM DEBT: | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
LONG-TERM DEBT: | ' | |||||||
LONG-TERM DEBT: | ' | |||||||
6. LONG-TERM DEBT: | ||||||||
Long-term debt consisted of the following at September 30, 2013 and December 31, 2012: | ||||||||
As of September 30, | As of December 31, | |||||||
2013 | 2012 | |||||||
Revolving credit facility | $ | 38,500,000 | $ | 158,000,000 | ||||
6.75% Senior Notes | 300,000,000 | — | ||||||
$ | 338,500,000 | $ | 158,000,000 | |||||
Revolving Credit Facility—The Company’s senior secured revolving Credit Agreement (the “Revolver”), dated March 29, 2011, as amended, with a syndication of banks, including KeyBank National Association as the administrative agent and issuing lender, provides for borrowings of up to $600 million. The Revolver provides for interest rates plus an applicable margin to be determined based on the London Interbank Offered Rate (“LIBOR”) or a bank base rate (“Base Rate”), at the Company’s election. LIBOR borrowings bear interest at LIBOR plus 1.75% to 2.75% depending on the utilization level, and the Base Rate borrowings bear interest at the “Bank Prime Rate,” as defined plus .75% to 1.75%. | ||||||||
The borrowing base under the Revolver was $330.0 million as of September 30, 2013. The borrowing base is redetermined semiannually by May 15 and November 15 and may be re-determined up to one additional time between such scheduled determinations upon request by the Company or lenders holding 66 and 2/3% of the aggregate commitments. A letter of credit that was issued to the Colorado State Board of Land Commissioners in connection with the Company’s lease of acreage in the Wattenberg Field (Wattenberg Field Lease Acquisition) reduces the borrowing base under the Revolver by approximately $36 million as of September 30, 2013 and will be paid in equal $12 million increments over the next three years. The Revolver provides for commitment fees ranging from 0.375% to 0.50%, depending on utilization, and restricts, among other items, the payment of dividends, certain additional indebtedness, sale of assets, loans and certain investments and mergers. The Revolver also contains certain financial covenants, which require the maintenance of a minimum current ratio and a minimum debt coverage ratio, as defined. The Company was in compliance with these covenants as of September 30, 2013. The Revolver is collateralized by substantially all the Company’s assets and matures on September 15, 2016. As of September 30, 2013, there was $38.5 million outstanding and the $36.0 million letter of credit issued under the Revolver, and the Company had $255.5 million available for future borrowings under the Revolver. | ||||||||
Senior Notes—On April 9, 2013, the Company issued $300,000,000 of 6.75% Senior Notes (the “Senior Notes”). Interest on the Senior Notes began accruing on April 9, 2013, and the Company will pay interest on April 15 and October 15 of each year, which began on October 15, 2013. The Senior Notes mature on April 15, 2021. The Senior Notes are guaranteed on a senior unsecured basis by the Company’s existing and future subsidiaries that incur or guarantee certain indebtedness, including indebtedness under the Company’s revolving credit facility. The Company may redeem the Senior Notes (i) at any time on or after April 15, 2017 at the redemption price equal to 100% together with accrued and unpaid interest, and (ii) prior to April 15, 2017 at the “make-whole” redemption prices described in the indenture together with accrued and unpaid interest. The net proceeds from the sale of the Senior Notes were approximately $292.7 million after deducting $7.3 million of expenses and underwriting discounts and commissions, and a portion of the proceeds were used to repay all of the then outstanding balance of $191,500,000 under our revolving credit facility. | ||||||||
The Company filed a Registration Statement on Form S-4 with the SEC, which became effective June 3, 2013 and registered the offering to exchange unregistered Senior Notes for registered Senior Notes, as well as the guarantees of the Senior Notes by the Company’s subsidiaries. As of September 30, 2013, all of the existing subsidiaries of the Company are guarantors of the Senior Notes, and all such subsidiaries are 100 percent owned by the Company. The guarantees by the subsidiaries are full and unconditional (except for customary release provisions) and constitute joint and several obligations of the subsidiaries. The Company has no independent assets or operations unrelated to its investments in its consolidated subsidiaries. There are no significant restrictions on the Company’s ability or the ability of any subsidiary guarantor to obtain funds from its subsidiaries by such means as a dividend or loan. |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES: | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES: | ' | ||||||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES: | ' | ||||||||||||||||
7. COMMITMENTS AND CONTINGENT LIABILITIES: | |||||||||||||||||
Contingent Liabilities—From time to time, the Company is involved in various commercial and regulatory claims, litigation and other legal proceedings that arise in the ordinary course of its business. The Company assesses these claims in an effort to determine the degree of probability and range of possible loss for potential accrual in its consolidated financial statements. In accordance with ASC 450, Contingencies, an accrual is recorded for a loss contingency when its occurrence is probable and damages can be reasonably estimated based on the anticipated most likely outcome or the minimum amount within a range of possible outcomes. Because legal proceedings are inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about uncertain future events. When evaluating contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. The Company regularly reviews contingencies to determine the adequacy of its accruals and related disclosures. | |||||||||||||||||
Environmental—The Company is engaged in oil and gas exploration and production and may become subject to certain liabilities as they relate to environmental cleanup of well sites or other environmental restoration or regulation procedures as they relate to the drilling of oil and gas wells and associated operations. Relative to the Company’s acquisition of existing or previously drilled well bores, the Company may not be aware of what environmental safeguards were taken at the time such wells were drilled or during such time the wells were operated. Should it be determined that a liability exists with respect to any environmental cleanup or restoration, the liability to cure such a violation could fall upon the Company. | |||||||||||||||||
Legal Proceedings—From time to time, the Company is subject to legal proceedings and claims that arise in the ordinary course of business. Like other gas and oil producers and marketers, the Company’s operations are subject to extensive and rapidly changing federal and state environmental, health and safety and other laws and regulations governing air emissions, wastewater discharges and solid and hazardous waste management activities. As of the date of this filing, there are no material pending or overtly threatened legal actions against the Company of which it is aware. | |||||||||||||||||
Commitments—The Company rents office facilities under various non-cancelable operating lease agreements. The Company’s non-cancelable operating lease agreements result in total future minimum non-cancelable lease payments presented below. The Company also has principal payment requirements for its 6.75% Senior Notes and payments on a portion of the Wattenberg Field Lease Acquisition, all of which are presented below: | |||||||||||||||||
Office Leases | Wattenberg Field | Interest on Senior | Repayment of | Total | |||||||||||||
Lease Acquisition | Notes | Senior Notes | |||||||||||||||
2013 | $ | 417,321 | $ | — | $ | 10,462,500 | $ | — | $ | 10,879,821 | |||||||
2014 | 2,028,651 | 11,999,877 | 20,250,000 | — | 34,278,528 | ||||||||||||
2015 | 2,016,960 | 11,999,877 | 20,250,000 | — | 34,266,837 | ||||||||||||
2016 | 1,742,910 | 11,999,877 | 20,250,000 | — | 33,992,787 | ||||||||||||
2017 and thereafter | 5,690,442 | — | 91,125,000 | 300,000,000 | 396,815,442 | ||||||||||||
$ | 11,896,284 | $ | 35,999,631 | $ | 162,337,500 | $ | 300,000,000 | $ | 510,233,415 |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS: | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
FAIR VALUE MEASUREMENTS: | ' | |||||||||||||
FAIR VALUE MEASUREMENTS: | ' | |||||||||||||
8. FAIR VALUE MEASUREMENTS: | ||||||||||||||
The Company follows FASB ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for using fair value to measure assets and liabilities, and expands disclosures about fair value measurements. The statement establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: | ||||||||||||||
Level 1: | Quoted prices are available in active markets for identical assets or liabilities; | |||||||||||||
Level 2: | Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or | |||||||||||||
Level 3: | Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. | |||||||||||||
Financial assets and liabilities are to be classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. | ||||||||||||||
The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013 by level within the fair value hierarchy: | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Commodity derivative assets | $ | — | $ | 940,214 | $ | 161,106 | ||||||||
Commodity derivative liabilities | $ | — | $ | 3,879,369 | $ | 6,028,328 | ||||||||
The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2012 by level within the fair value hierarchy: | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Commodity derivative assets | $ | — | $ | 450,872 | $ | 1,727,192 | ||||||||
Commodity derivative liabilities | $ | — | $ | 5,173,140 | $ | 1,235,168 | ||||||||
Fair value of all derivative instruments are estimated with industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. All valuations were compared against counterparty statements to verify the reasonableness of the estimate. The Company’s commodity swaps are validated by observable transactions for the same or similar commodity options using the NYMEX futures index, and are designated as Level 2 within the valuation hierarchy. The Company’s collars, which are designated as Level 3 within the valuation hierarchy, are not validated by observable transactions with respect to volatility. Presently, all of our hedging arrangements are concentrated with six counterparties, five of which are lenders under our Company’s senior secured revolving credit facility. | ||||||||||||||
The following table reflects the activity for the commodity derivatives measured at fair value using Level 3 inputs during the period from January 1, 2013 through September 30, 2013: | ||||||||||||||
Derivative Asset | Derivative Liability | |||||||||||||
Beginning net asset (liability) balance | $ | 1,727,192 | $ | 1,235,168 | ||||||||||
Net (decrease) increase in fair value | (4,062,935 | ) | 5,310,842 | |||||||||||
Net realized (loss) on settlement | (586,249 | ) | (1,559,729 | ) | ||||||||||
New derivatives | 3,083,098 | 1,042,047 | ||||||||||||
Transfers in (out) of Level 3 | — | — | ||||||||||||
Ending net asset (liability) balance | $ | 161,106 | $ | 6,028,328 | ||||||||||
As of September 30, 2013, the Company’s derivative commodity contracts are as follows: | ||||||||||||||
Settlement Period | Swap Volume | Fixed Price | Collar Volume | Average Short | Average Floor | Average Ceiling | ||||||||
Floor | ||||||||||||||
Oil | Bbl/d | $ | Bbl/d | $ | $ | $ | ||||||||
Q4 2013 | 3,939 | 93.81 | 5,022 | 87.99 | 101.46 | |||||||||
Q1 2014 | 2,133 | 96.19 | 5,617 | 86.33 | 97.09 | |||||||||
Q2 2014 | 2,126 | 96.21 | 4,846 | 86.55 | 96.72 | |||||||||
Q3 2014 | 1,370 | 94.4 | 4,326 | 86.16 | 96.57 | |||||||||
Q4 2014 | 1,370 | 94.4 | 4,326 | 86.16 | 96.57 | |||||||||
Q1 2014 | 1,000 | 60 | 85 | 99.5 | ||||||||||
Q2 2014 | 1,000 | 60 | 85 | 99.5 | ||||||||||
Q3 2014 | 1,000 | 60 | 85 | 99.5 | ||||||||||
Q4 2014 | 1,000 | 60 | 85 | 99.5 | ||||||||||
FY 2015 | 1,500 | 60 | 80 | 98.15 | ||||||||||
Gas | MMBtu/d | $ | ||||||||||||
Q4 2013 | 166 | 6.4 | ||||||||||||
The table below contains a summary of all the Company’s derivative positions reported on the consolidated balance sheet as of September 30, 2013: | ||||||||||||||
Derivatives | Balance Sheet Location | Fair Value | ||||||||||||
Asset | ||||||||||||||
Commodity derivatives | Current derivative assets | $ | 620,446 | |||||||||||
Commodity derivatives | Long-term derivative assets | 480,874 | ||||||||||||
Liability | ||||||||||||||
Commodity derivatives | Current derivative liability | (9,613,257 | ) | |||||||||||
Commodity derivatives | Long-term derivative liability | (294,440 | ) | |||||||||||
Total | $ | (8,806,377 | ) | |||||||||||
Realized gains and losses on commodity derivatives and the unrealized gains or losses are recorded in other income (expense). | ||||||||||||||
Asset Retirement Obligation—Upon completion of wells and natural gas plants, the Company records an asset retirement obligation at fair value using Level 3 assumptions. | ||||||||||||||
Proved Oil and Gas Properties—Proved oil and gas property costs are evaluated for impairment and reduced to fair value when there is an indication that the carrying costs exceed the sum of the undiscounted cash flows. The Company uses Level 3 inputs and the income valuation technique, which converts future amounts to a single present value amount, to measure the fair value of proved properties through an application of discount rates and price forecasts selected by the Company’s management. The calculation of the discount rate is a significant management estimate based on the best information available and estimated to be 10 percent for the nine months ended September 30, 2013. Management believes that the discount rate is representative of current market conditions and reflects the following factors: estimate of future cash payments, expectations of possible variations in the amount and/or timing of cash flows, the risk premium, and nonperformance risk. The price forecast is based on New York Mercantile Exchange (“NYMEX”) strip pricing, adjusted for basis differentials. Future operating costs are also adjusted as deemed appropriate for these estimates. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY: | 9 Months Ended |
Sep. 30, 2013 | |
STOCKHOLDERS' EQUITY: | ' |
STOCKHOLDERS' EQUITY: | ' |
9. STOCKHOLDERS’ EQUITY: | |
Management Incentive Plan—On December 23, 2010, the Company established the Management Incentive Plan (the “Plan” or “MIP”) for the benefit of certain employees, officers and other individuals performing services for the Company. Ten thousand shares of Class B common stock were available under the Plan and these shares were converted into 437,787 shares of restricted common stock upon completion of our initial public offering (“IPO”). The conversion rate was determined based on a formula factoring in the rate of return to the pre-IPO common stockholders. The 437,787 shares of common stock that were granted to employees were valued at $17.00 per share on the grant date and vest over a three year period. For the three and nine months ended September 30, 2013, stock-based compensation expense related to the MIP grant was approximately $0.8 million and $1,926,000, respectively, and, as of September 30, 2013, there was approximately $2,690,000 of unrecognized compensation costs related to the unvested restricted common stock granted under the MIP. That cost is expected to be recognized over a period of 1.25 years. The MIP has been terminated such that there will be no future grants thereunder. | |
BCEC Investment Trust— The BCEC Investment Trust was formed to hold shares of our common stock received by Bonanza Creek Energy Company, LLC, our predecessor, in connection with our December 23, 2010 corporate restructuring. On February 5, 2013, 13,825 previously issued shares of our common stock that were fully vested and held by the BCEC Investment Trust were distributed to former employees. While the shares had been issued in December 2010, for accounting purposes, the date of distribution to former employees was considered the grant date, and these shares were valued at the closing price of our common stock on the grant date, which was $34.18 per share. On February 11, 2013, 59,372 previously issued shares of our common stock that were fully vested and held by the BCEC Investment Trust were distributed to certain current employees. While the shares had been issued in December 2010, for accounting purposes, the date of distribution to employees was considered the grant date, and these shares were valued at the closing price of our common stock on the grant date, which was $34.89 per share. These distributions resulted in a stock-based compensation expense of $— and $2,741,000, respectively, related to the BCEC Investment Trust during the three and nine month periods ended September 30, 2013. | |
2011 Long Term Incentive Plan. During 2012, the Company granted 703,246 shares of restricted common stock under its 2011 Long Term Incentive Plan (the “LTIP”) to officers and certain key employees. For accounting purposes, these shares are valued at the closing price of our common stock on the grant date and compensation expense is recognized over the vesting period. These shares will vest annually in one-third increments over three years. For the three and nine months ended September 30, 2013, stock-based compensation expense related to the 2012 LTIP grants was approximately $1.0 million and $3,151,000, respectively, and, as of September 30, 2013, there remained $5,877,000 of unrecognized compensation costs related to the unvested restricted common stock granted under the LTIP. That cost is expected to be recognized over the next 2.17 years. | |
During 2013, the Company granted 265,066 shares of restricted common stock under the LTIP to officers and employees. For accounting purposes, these shares are valued at the closing price of our common stock on the grant date and compensation expense is recognized over the vesting period. These shares will vest annually in one-third increments over three years. For the three and nine months ended September 30, 2013, stock-based compensation expense related to the 2013 LTIP grants was approximately $0.8 million and $1,645,000, respectively, and, as of September 30, 2013, there remained $8,450,000 of unrecognized compensation costs related to the unvested restricted stock granted under the LTIP. That cost is expected to be recognized over the next 3.0 years. | |
During 2013, the Company granted 41,622 Performance Stock Units (“PSUs”) under the LTIP to certain officers. The number of shares of the Company’s common stock that may be issued to settle PSUs ranges from zero to two times the number of PSUs awarded and is determined based on the Company’s performance over a three-year measurement period. The performance criterion for the PSUs is based on a comparison of the Company’s Total Shareholder Return (“TSR”) for the measurement period compared with the TSRs of a group of peer companies for the measurement period. Expense associated with PSUs is recognized as general and administrative expense over the vesting period. The fair value of the PSUs was measured at the grant date with a stochastic process method using the Geometric Brownian Motion Model (“GBM Model”). For the three and nine months ended September 30, 2013, stock-based compensation expense related to the 2013 LTIP PSU grants was approximately $102,000 and $253,000, respectively, and, as of September 30, 2013, there remained $1,094,000 of unrecognized compensation cost as of September 30, 2013 related to the unvested PSUs granted under the LTIP. That cost is expected to be recognized over the next 2.25 years. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE: | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
EARNINGS PER SHARE: | ' | |||||||||
EARNINGS PER SHARE: | ' | |||||||||
10. EARNINGS PER SHARE: | ||||||||||
The Company computes basic net income per share using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed using the weighted average number of shares of common stock and, if dilutive, potential shares of common stock outstanding during the period. The potentially dilutive shares are related to the 2013 PSU grants to certain officers. The number of shares of the Company’s common stock that may be issued to settle PSUs ranges from zero to two times the number of PSUs awarded and is determined based on the Company’s performance over a three-year measurement period. The treasury stock method is used to measure the dilutive impact of potentially dilutive shares. | ||||||||||
The following table details the potential weighted average dilutive and anti-dilutive securities for the periods presented. | ||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||
Ended | Ended | Ended | Ended | |||||||
September 30 | September 30 | September 30 | September 30 | |||||||
2013 | 2012 | 2013 | 2012 | |||||||
Basic weighted average number of common shares outstanding | 40,266,516 | 39,477,101 | 40,209,752 | 39,476,133 | ||||||
Dilution effect of stock-based compensation awards at end of period | 54,572 | — | 56,279 | — | ||||||
Diluted weighted average number of common shares outstanding | 40,321,088 | 39,477,101 | 40,266,031 | 39,476,133 | ||||||
Anti-dilutive stock-based compensation awards | 176,436 | — | 157,934 | — |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS: | 9 Months Ended |
Sep. 30, 2013 | |
SUBSEQUENT EVENTS: | ' |
SUBSEQUENT EVENTS: | ' |
11. SUBSEQUENT EVENTS: | |
On November 6, 2013, the lenders under the Company’s revolving credit facility completed their semi-annual borrowing base redetermination which resulted in an increase of the available borrowing base to $450 million. Pursuant to the corresponding amendment, the Company elected to limit bank commitments at $330 million while reserving the option to access, at the Company’s request, the full $450 million prior to the next semi-annual redetermination. The maturity date of the credit facility was also extended by one year to September 15, 2017. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION: (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
BASIS OF PRESENTATION: | ' |
Principles of Consolidation | ' |
Principles of Consolidation—The consolidated balance sheets include the accounts of the Company and its wholly owned subsidiaries, Bonanza Creek Energy Operating Company, LLC, Bonanza Creek Energy Resources, LLC, Holmes Eastern Company, LLC, Bonanza Creek Energy Upstream LLC, and Bonanza Creek Energy Midstream, LLC. All significant intercompany accounts and transactions have been eliminated. | |
Oil and Gas Producing Activities | ' |
Oil and Gas Producing Activities—The Company follows the successful efforts method of accounting for its oil and gas properties. Under this method of accounting, all property acquisition costs and costs of exploratory and development wells will be capitalized at cost when incurred, pending determination of whether the well has found proved reserves. If an exploratory well has not found proved reserves, the costs of drilling the well and other associated costs will be charged to expense. The costs of development wells will be capitalized whether productive or nonproductive. Costs incurred to maintain wells and related equipment and lease and well operating costs are charged to expense as incurred. Gains and losses arising from sales of properties will be included in income. However, sales that do not significantly affect a field’s unit-of-production depletion rate will be accounted for as normal retirements with no gain or loss recognized. Geological and geophysical costs of exploratory prospects and the costs of carrying and retaining unproved properties are expensed as incurred. | |
Depletion, Depreciation and Amortization | ' |
Depletion, depreciation and amortization (“DD&A”) of capitalized costs of proved oil and gas properties are provided for on a field-by-field basis using the units of production method based upon proved reserves. The computation of DD&A takes into consideration the anticipated proceeds from equipment salvage and the Company’s expected cost to abandon its well interests. | |
Impairment of Oil and Gas Properties | ' |
The Company assesses its proved oil and gas properties for impairment whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. The impairment test compares undiscounted future net cash flows to the assets’ net book value. If the net capitalized costs exceed future net cash flows, then the cost of the property will be written down to “fair value.” Fair value for oil and natural gas properties is generally determined based on discounted future net cash flows. |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS: (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
DISCONTINUED OPERATIONS: | ' | |||||||||||||
Schedule of carrying amounts of the major classes of assets and liabilities related to the operation of the remaining property that is held for sale | ' | |||||||||||||
As of September 30, | As of December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
PROPERTY AND EQUIPMENT: | ||||||||||||||
Oil and gas properties, successful efforts method: | ||||||||||||||
Proved properties | $ | 1,721,265 | $ | 1,721,265 | ||||||||||
Unproved properties | 629 | 629 | ||||||||||||
Wells in progress | 100,936 | 39,245 | ||||||||||||
Total property and equipment | 1,822,830 | 1,761,139 | ||||||||||||
Less accumulated depletion and depreciation | (1,381,235 | ) | (1,178,751 | ) | ||||||||||
Net property and equipment | $ | 441,595 | $ | 582,388 | ||||||||||
Schedule of revenues and costs and expenses, and the income (loss) associated with the operation of the oil and gas properties held for sale | ' | |||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30 | September 30 | September 30 | September 30 | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
NET REVENUES: | ||||||||||||||
Oil and gas sales | $ | 403,184 | $ | 1,274,906 | $ | 1,277,968 | $ | 5,000,665 | ||||||
OPERATING EXPENSES: | ||||||||||||||
Lease operating | 573,668 | 451,795 | 1,478,992 | 1,853,085 | ||||||||||
Severance and ad valorem taxes | 382 | 8,809 | 1,058 | 124,298 | ||||||||||
Exploration | 400 | 6,219 | 65,537 | 17,008 | ||||||||||
Depreciation, depletion and amortization | 62,318 | 570,488 | 266,962 | 2,149,478 | ||||||||||
Impairment of proved properties | — | 1,648,190 | — | 1,648,190 | ||||||||||
TOTAL COSTS AND EXPENSES | 636,768 | 2,685,501 | 1,812,549 | 5,792,059 | ||||||||||
(LOSS) FROM OPERATIONS ASSOCIATED WITH OIL AND GAS PROPERTIES HELD FOR SALE | ||||||||||||||
$ | (233,584 | ) | $ | (1,410,595 | ) | $ | (534,581 | ) | $ | (791,394 | ) |
ACCOUNTS_PAYABLE_AND_ACCRUED_E1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES: (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES: | ' | |||||||
Schedule of accounts payable and accrued expenses | ' | |||||||
As of September 30, | As of December 31, | |||||||
2013 | 2012 | |||||||
Drilling and completion costs | $ | 63,764,281 | $ | 51,698,682 | ||||
Accounts payable | 3,829,146 | 10,049,131 | ||||||
Accrued general and administrative cost | 8,134,689 | 5,079,462 | ||||||
Lease operating expense | 4,947,900 | 2,824,300 | ||||||
Accrued reclamation cost | 186,587 | 400,000 | ||||||
Accrued interest | 9,686,569 | 219,494 | ||||||
Accrued oil and gas hedging | 2,434,858 | 238,365 | ||||||
Production taxes and other | 3,933,371 | 2,340,838 | ||||||
$ | 96,917,401 | $ | 72,850,272 |
LONGTERM_DEBT_Tables
LONG-TERM DEBT: (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
LONG-TERM DEBT: | ' | |||||||
Schedule of long-term debt | ' | |||||||
As of September 30, | As of December 31, | |||||||
2013 | 2012 | |||||||
Revolving credit facility | $ | 38,500,000 | $ | 158,000,000 | ||||
6.75% Senior Notes | 300,000,000 | — | ||||||
$ | 338,500,000 | $ | 158,000,000 | |||||
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES: (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES: | ' | ||||||||||||||||
Schedule of future minimum noncancelable lease payments and principal and interest for Senior Notes | ' | ||||||||||||||||
Office Leases | Wattenberg Field | Interest on Senior | Repayment of | Total | |||||||||||||
Lease Acquisition | Notes | Senior Notes | |||||||||||||||
2013 | $ | 417,321 | $ | — | $ | 10,462,500 | $ | — | $ | 10,879,821 | |||||||
2014 | 2,028,651 | 11,999,877 | 20,250,000 | — | 34,278,528 | ||||||||||||
2015 | 2,016,960 | 11,999,877 | 20,250,000 | — | 34,266,837 | ||||||||||||
2016 | 1,742,910 | 11,999,877 | 20,250,000 | — | 33,992,787 | ||||||||||||
2017 and thereafter | 5,690,442 | — | 91,125,000 | 300,000,000 | 396,815,442 | ||||||||||||
$ | 11,896,284 | $ | 35,999,631 | $ | 162,337,500 | $ | 300,000,000 | $ | 510,233,415 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS: (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
FAIR VALUE MEASUREMENTS: | ' | |||||||||||||
Schedule of financial assets and liabilities at fair value on recurring basis | ' | |||||||||||||
The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013 by level within the fair value hierarchy: | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Commodity derivative assets | $ | — | $ | 940,214 | $ | 161,106 | ||||||||
Commodity derivative liabilities | $ | — | $ | 3,879,369 | $ | 6,028,328 | ||||||||
The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2012 by level within the fair value hierarchy: | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Commodity derivative assets | $ | — | $ | 450,872 | $ | 1,727,192 | ||||||||
Commodity derivative liabilities | $ | — | $ | 5,173,140 | $ | 1,235,168 | ||||||||
Schedule of activity for commodity derivatives measured at fair value using Level 3 inputs | ' | |||||||||||||
Derivative Asset | Derivative Liability | |||||||||||||
Beginning net asset (liability) balance | $ | 1,727,192 | $ | 1,235,168 | ||||||||||
Net (decrease) increase in fair value | (4,062,935 | ) | 5,310,842 | |||||||||||
Net realized (loss) on settlement | (586,249 | ) | (1,559,729 | ) | ||||||||||
New derivatives | 3,083,098 | 1,042,047 | ||||||||||||
Transfers in (out) of Level 3 | — | — | ||||||||||||
Ending net asset (liability) balance | $ | 161,106 | $ | 6,028,328 | ||||||||||
Schedule of derivative commodity contracts | ' | |||||||||||||
Settlement Period | Swap Volume | Fixed Price | Collar Volume | Average Short | Average Floor | Average Ceiling | ||||||||
Floor | ||||||||||||||
Oil | Bbl/d | $ | Bbl/d | $ | $ | $ | ||||||||
Q4 2013 | 3,939 | 93.81 | 5,022 | 87.99 | 101.46 | |||||||||
Q1 2014 | 2,133 | 96.19 | 5,617 | 86.33 | 97.09 | |||||||||
Q2 2014 | 2,126 | 96.21 | 4,846 | 86.55 | 96.72 | |||||||||
Q3 2014 | 1,370 | 94.4 | 4,326 | 86.16 | 96.57 | |||||||||
Q4 2014 | 1,370 | 94.4 | 4,326 | 86.16 | 96.57 | |||||||||
Q1 2014 | 1,000 | 60 | 85 | 99.5 | ||||||||||
Q2 2014 | 1,000 | 60 | 85 | 99.5 | ||||||||||
Q3 2014 | 1,000 | 60 | 85 | 99.5 | ||||||||||
Q4 2014 | 1,000 | 60 | 85 | 99.5 | ||||||||||
FY 2015 | 1,500 | 60 | 80 | 98.15 | ||||||||||
Gas | MMBtu/d | $ | ||||||||||||
Q4 2013 | 166 | 6.4 | ||||||||||||
Schedule of derivative positions reported on consolidated balance sheet | ' | |||||||||||||
Derivatives | Balance Sheet Location | Fair Value | ||||||||||||
Asset | ||||||||||||||
Commodity derivatives | Current derivative assets | $ | 620,446 | |||||||||||
Commodity derivatives | Long-term derivative assets | 480,874 | ||||||||||||
Liability | ||||||||||||||
Commodity derivatives | Current derivative liability | (9,613,257 | ) | |||||||||||
Commodity derivatives | Long-term derivative liability | (294,440 | ) | |||||||||||
Total | $ | (8,806,377 | ) |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE: (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
EARNINGS PER SHARE: | ' | |||||||||
Schedule of details of the potential weighted average dilutive and anti-dilutive securities | ' | |||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||
Ended | Ended | Ended | Ended | |||||||
September 30 | September 30 | September 30 | September 30 | |||||||
2013 | 2012 | 2013 | 2012 | |||||||
Basic weighted average number of common shares outstanding | 40,266,516 | 39,477,101 | 40,209,752 | 39,476,133 | ||||||
Dilution effect of stock-based compensation awards at end of period | 54,572 | — | 56,279 | — | ||||||
Diluted weighted average number of common shares outstanding | 40,321,088 | 39,477,101 | 40,266,031 | 39,476,133 | ||||||
Anti-dilutive stock-based compensation awards | 176,436 | — | 157,934 | — |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS: (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
DISCONTINUED OPERATIONS: | ' | ' | ' | ' | ' | ' |
Period within which sale of asset takes place to classify it as held for sale | '1 year | ' | ' | ' | ' | ' |
Oil and gas properties, successful efforts method: | ' | ' | ' | ' | ' | ' |
Proved properties | ' | $1,155,502,451 | ' | $1,155,502,451 | ' | $811,000,239 |
Unproved properties | ' | 44,444,030 | ' | 44,444,030 | ' | 72,928,364 |
Wells in progress | ' | 86,499,729 | ' | 86,499,729 | ' | 75,031,806 |
OIL AND GAS PROPERTIES-using the successful efforts method of accounting | ' | 1,286,446,210 | ' | 1,286,446,210 | ' | 958,960,409 |
Less accumulated depletion and depreciation | ' | -175,678,611 | ' | -175,678,611 | ' | -89,669,725 |
OIL AND GAS PROPERTIES-net, using the successful efforts method of accounting | ' | 1,110,767,599 | ' | 1,110,767,599 | ' | 869,290,684 |
NET REVENUES: | ' | ' | ' | ' | ' | ' |
Oil and gas sales | ' | 125,973,199 | 58,327,823 | 288,797,684 | 157,613,348 | ' |
OPERATING EXPENSES: | ' | ' | ' | ' | ' | ' |
Lease operating | ' | 12,957,541 | 8,444,403 | 36,986,307 | 22,506,131 | ' |
Severance and ad valorem taxes | ' | 8,085,512 | 3,021,860 | 18,250,331 | 9,387,094 | ' |
Exploration | ' | 2,099,415 | 6,359,222 | 3,524,111 | 9,563,876 | ' |
Depreciation, depletion and amortization | ' | 36,750,003 | 17,715,763 | 89,629,794 | 41,751,296 | ' |
Impairment of proved properties | ' | ' | 268,500 | ' | 268,500 | ' |
Total operating expenses | ' | 73,703,708 | 45,145,014 | 188,650,690 | 105,887,266 | ' |
(LOSS) FROM OPERATIONS ASSOCIATED WITH OIL AND GAS PROPERTIES HELD FOR SALE | ' | -233,584 | -1,410,595 | -534,581 | -791,394 | ' |
Oil and gas properties in California | ' | ' | ' | ' | ' | ' |
Oil and gas properties, successful efforts method: | ' | ' | ' | ' | ' | ' |
Proved properties | ' | 1,721,265 | ' | 1,721,265 | ' | 1,721,265 |
Unproved properties | ' | 629 | ' | 629 | ' | 629 |
Wells in progress | ' | 100,936 | ' | 100,936 | ' | 39,245 |
OIL AND GAS PROPERTIES-using the successful efforts method of accounting | ' | 1,822,830 | ' | 1,822,830 | ' | 1,761,139 |
Less accumulated depletion and depreciation | ' | -1,381,235 | ' | -1,381,235 | ' | -1,178,751 |
OIL AND GAS PROPERTIES-net, using the successful efforts method of accounting | ' | 441,595 | ' | 441,595 | ' | 582,388 |
NET REVENUES: | ' | ' | ' | ' | ' | ' |
Oil and gas sales | ' | 403,184 | 1,274,906 | 1,277,968 | 5,000,665 | ' |
OPERATING EXPENSES: | ' | ' | ' | ' | ' | ' |
Lease operating | ' | 573,668 | 451,795 | 1,478,992 | 1,853,085 | ' |
Severance and ad valorem taxes | ' | 382 | 8,809 | 1,058 | 124,298 | ' |
Exploration | ' | 400 | 6,219 | 65,537 | 17,008 | ' |
Depreciation, depletion and amortization | ' | 62,318 | 570,488 | 266,962 | 2,149,478 | ' |
Impairment of proved properties | ' | ' | 1,648,190 | ' | 1,648,190 | ' |
Total operating expenses | ' | 636,768 | 2,685,501 | 1,812,549 | 5,792,059 | ' |
(LOSS) FROM OPERATIONS ASSOCIATED WITH OIL AND GAS PROPERTIES HELD FOR SALE | ' | ($233,584) | ($1,410,595) | ($534,581) | ($791,394) | ' |
ACCOUNTS_PAYABLE_AND_ACCRUED_E2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES: (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Accounts payable and accrued expenses contain the following: | ' | ' |
Drilling and completion costs | $63,764,281 | $51,698,682 |
Accounts payable | 3,829,146 | 10,049,131 |
Accrued general and administrative cost | 8,134,689 | 5,079,462 |
Lease operating expense | 4,947,900 | 2,824,300 |
Accrued reclamation cost | 186,587 | 400,000 |
Accrued interest | 9,686,569 | 219,494 |
Accrued oil and gas hedging | 2,434,858 | 238,365 |
Production taxes and other | 3,933,371 | 2,340,838 |
Total accounts payable and accrued expenses | $96,917,401 | $72,850,272 |
LONGTERM_DEBT_Details
LONG-TERM DEBT: (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 09, 2013 | Sep. 30, 2013 | Apr. 09, 2013 |
Revolver | Revolver | Revolver | Revolver | Revolver | Revolver | Revolver | Revolver | Revolver | Revolver | Senior Note | Senior Note | Senior Note | |||
item | LIBOR | Bank Prime Rate | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Revolver | ||||||
LIBOR | Bank Prime Rate | LIBOR | Bank Prime Rate | ||||||||||||
LONG-TERM DEBT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | $338,500,000 | $158,000,000 | $38,500,000 | $158,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $300,000,000 | ' |
Maximum borrowing capacity | ' | ' | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis of interest rate | ' | ' | ' | ' | 'LIBOR | 'Bank Prime Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | 1.75% | 0.75% | ' | 2.75% | 1.75% | ' | ' | ' |
Borrowing base | ' | ' | 330,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of additional times for which the entity can redetermined borrowing base | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base redetermined based on request by lenders holding aggregate commitments (as a percent) | ' | ' | 66.67% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in borrowing base due to issue of letter of credit | ' | ' | 36,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental amount to be paid on reduction in borrowing base due to issue of letter of credit | ' | ' | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period to pay reduction in borrowing base due to issuance of letter of credit | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fees (as a percent) | ' | ' | ' | ' | ' | ' | 0.38% | ' | ' | 0.50% | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | 36,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining borrowing capacity | ' | ' | 255,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.75% | ' | ' |
Redemption price as a percentage of principal amount of notes plus accrued and unpaid interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Net proceeds from sale of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 292,700,000 | ' | ' |
Expenses and underwriting discounts and commissions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,300,000 | ' | ' |
Repayment of outstanding balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 191,500,000 |
Ownership percentage in all existing subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' |
Amount of independent assets other than ownership interest in subsidiaries and affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Amount of independent operations other than ownership interest in subsidiaries and affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES: (Details) (USD $) | Sep. 30, 2013 |
Total commitments | ' |
2013 | $10,879,821 |
2014 | 34,278,528 |
2015 | 34,266,837 |
2016 | 33,992,787 |
2017 and thereafter | 396,815,442 |
Total | 510,233,415 |
Senior Notes | ' |
Interest | ' |
2013 | 10,462,500 |
2014 | 20,250,000 |
2015 | 20,250,000 |
2016 | 20,250,000 |
2017 and thereafter | 91,125,000 |
Total | 162,337,500 |
Repayment of Senior Notes | ' |
2017 and thereafter | 300,000,000 |
Total | 300,000,000 |
Office Leases | ' |
Leases | ' |
2013 | 417,321 |
2014 | 2,028,651 |
2015 | 2,016,960 |
2016 | 1,742,910 |
2017 and thereafter | 5,690,442 |
Total | 11,896,284 |
Wattenberg Field Lease Acquisition | ' |
Leases | ' |
2014 | 11,999,877 |
2015 | 11,999,877 |
2016 | 11,999,877 |
Total | $35,999,631 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS: (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Financial assets and liabilities accounted for at fair value | ' | ' |
Total number of counterparties in derivative financial instruments | 6 | ' |
Number of lenders out of total counterparties in derivative financial instruments | 5 | ' |
Recurring | Level 2 | Commodity derivative | ' | ' |
Financial assets and liabilities accounted for at fair value | ' | ' |
Derivative assets | $940,214 | $450,872 |
Derivative liabilities | 3,879,369 | 5,173,140 |
Recurring | Level 3 | Commodity derivative | ' | ' |
Financial assets and liabilities accounted for at fair value | ' | ' |
Derivative assets | 161,106 | 1,727,192 |
Derivative liabilities | $6,028,328 | $1,235,168 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS: (Details 2) (Commodity derivatives, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Commodity derivatives | ' |
Derivative Asset | ' |
Beginning net asset (liability) balance | $1,727,192 |
Net (decrease) increase in fair value | -4,062,935 |
Net realized (loss) on settlement | -586,249 |
New derivatives | 3,083,098 |
Ending net asset (liability) balance | 161,106 |
Derivative Liability | ' |
Beginning net asset (liability) balance | 1,235,168 |
Net (decrease) increase in fair value | 5,310,842 |
Net realized (loss) on settlement | -1,559,729 |
New derivatives | 1,042,047 |
Ending net asset (liability) balance | $6,028,328 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS: (Details 3) (Commodity derivatives) | Sep. 30, 2013 |
Oil | Q4 2013 | Fixed Price 93.81 | ' |
Derivative contract | ' |
Swap Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 3,939 |
Price (in dollars per unit) | 93.81 |
Collar Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 5,022 |
Oil | Q1 2014 | ' |
Derivative contract | ' |
Collar Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 1,000 |
Average Short Floor (in dollars per unit) | 60 |
Oil | Q1 2014 | Fixed Price 96.19 | ' |
Derivative contract | ' |
Swap Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 2,133 |
Price (in dollars per unit) | 96.19 |
Collar Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 5,617 |
Oil | Q2 2014 | ' |
Derivative contract | ' |
Collar Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 1,000 |
Average Short Floor (in dollars per unit) | 60 |
Oil | Q2 2014 | Fixed Price 96.21 | ' |
Derivative contract | ' |
Swap Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 2,126 |
Price (in dollars per unit) | 96.21 |
Collar Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 4,846 |
Oil | Q3 2014 | ' |
Derivative contract | ' |
Collar Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 1,000 |
Average Short Floor (in dollars per unit) | 60 |
Oil | Q3 2014 | Fixed Price 94.40 | ' |
Derivative contract | ' |
Swap Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 1,370 |
Price (in dollars per unit) | 94.4 |
Collar Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 4,326 |
Oil | Q4 2014 | ' |
Derivative contract | ' |
Collar Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 1,000 |
Average Short Floor (in dollars per unit) | 60 |
Oil | Q4 2014 | Fixed Price 94.40 | ' |
Derivative contract | ' |
Swap Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 1,370 |
Price (in dollars per unit) | 94.4 |
Collar Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 4,326 |
Oil | FY 2015 | ' |
Derivative contract | ' |
Collar Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 1,500 |
Average Short Floor (in dollars per unit) | 60 |
Oil | Average Floor | Q4 2013 | Fixed Price 93.81 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 87.99 |
Oil | Average Floor | Q1 2014 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 85 |
Oil | Average Floor | Q1 2014 | Fixed Price 96.19 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 86.33 |
Oil | Average Floor | Q2 2014 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 85 |
Oil | Average Floor | Q2 2014 | Fixed Price 96.21 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 86.55 |
Oil | Average Floor | Q3 2014 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 85 |
Oil | Average Floor | Q3 2014 | Fixed Price 94.40 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 86.16 |
Oil | Average Floor | Q4 2014 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 85 |
Oil | Average Floor | Q4 2014 | Fixed Price 94.40 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 86.16 |
Oil | Average Floor | FY 2015 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 80 |
Oil | Average Ceiling | Q4 2013 | Fixed Price 93.81 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 101.46 |
Oil | Average Ceiling | Q1 2014 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 99.5 |
Oil | Average Ceiling | Q1 2014 | Fixed Price 96.19 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 97.09 |
Oil | Average Ceiling | Q2 2014 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 99.5 |
Oil | Average Ceiling | Q2 2014 | Fixed Price 96.21 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 96.72 |
Oil | Average Ceiling | Q3 2014 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 99.5 |
Oil | Average Ceiling | Q3 2014 | Fixed Price 94.40 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 96.57 |
Oil | Average Ceiling | Q4 2014 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 99.5 |
Oil | Average Ceiling | Q4 2014 | Fixed Price 94.40 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 96.57 |
Oil | Average Ceiling | FY 2015 | ' |
Derivative contract | ' |
Price (in dollars per unit) | 98.15 |
Gas | Q4 2013 | Fixed Price 6.40 | ' |
Derivative contract | ' |
Swap Volume (in Bbl./Day for oil or MMBTU/Day for gas) | 166 |
Price (in dollars per unit) | 6.4 |
FAIR_VALUE_MEASUREMENTS_Detail3
FAIR VALUE MEASUREMENTS: (Details 4) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Proved Oil and Gas Properties | ' |
Estimated discount rate to measure fair value of proved oil and gas properties (as a percent) | 10.00% |
Fair Value | ' |
Derivatives measured at fair value | ' |
Total | -8,806,377 |
Commodity derivatives | Fair Value | Current derivative assets | ' |
Derivatives measured at fair value | ' |
Derivative asset | 620,446 |
Commodity derivatives | Fair Value | Long-term derivative assets | ' |
Derivatives measured at fair value | ' |
Derivative asset | 480,874 |
Commodity derivatives | Fair Value | Current derivative liability | ' |
Derivatives measured at fair value | ' |
Derivative liability | -9,613,257 |
Commodity derivatives | Fair Value | Long-term derivative liability | ' |
Derivatives measured at fair value | ' |
Derivative liability | -294,440 |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY: (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 23, 2010 | Dec. 23, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Feb. 05, 2013 | Feb. 11, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
PSUs | PSUs | PSUs | MIP | MIP | MIP | MIP | BCEC Investment Trust | BCEC Investment Trust | BCEC Investment Trust | 2011 Long Term Incentive Plan | 2011 Long Term Incentive Plan | 2011 Long Term Incentive Plan | 2011 Long Term Incentive Plan | 2011 Long Term Incentive Plan | 2011 Long Term Incentive Plan | 2011 Long Term Incentive Plan | 2011 Long Term Incentive Plan | 2011 Long Term Incentive Plan | |
Officers | Officers | Officers | Class B | Restricted shares | Restricted shares | Restricted shares | Former employees | Employees | 2012 LTIP grants | 2012 LTIP grants | 2012 LTIP grants | 2013 LTIP grants | 2013 LTIP grants | PSUs | PSUs | PSUs | PSUs | ||
Maximum | Minimum | Employees | Employees | Employees | Officers and employees | Officers and employees | Officers and employees | Officers and employees | Officers and employees | Officers | Officers | Officers | Officers | ||||||
Maximum | Minimum | ||||||||||||||||||
STOCKHOLDERS' EQUITY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available under the plan | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares granted | ' | ' | ' | ' | 437,787 | ' | ' | ' | ' | ' | ' | ' | 703,246 | ' | 265,066 | ' | 41,622 | ' | ' |
Vesting portion of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.3333 | ' | 0.3333 | ' | ' | ' | ' |
Share price (in dollars per share) | ' | ' | ' | ' | $17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | '3 years | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' | $1,926,000 | $800,000 | $2,741,000 | ' | ' | $1,000,000 | $3,151,000 | ' | $800,000 | $1,645,000 | $102,000 | $253,000 | ' | ' |
Unrecognized compensation costs | ' | ' | ' | ' | ' | $2,690,000 | ' | ' | ' | ' | $5,877,000 | $5,877,000 | ' | $8,450,000 | $8,450,000 | $1,094,000 | $1,094,000 | ' | ' |
Unrecognized compensation costs recognition period | ' | ' | ' | ' | ' | '1 year 3 months | ' | ' | ' | ' | ' | '2 years 2 months 1 day | ' | ' | '3 years | ' | '2 years 3 months | ' | ' |
Number of shares of common stock distributed that were fully vested and held by the BCEC Investment Trust | ' | ' | ' | ' | ' | ' | ' | ' | 13,825 | 59,372 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grant date fair market value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $34.18 | $34.89 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio at which award holders get common stock of the company | ' | 2 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 0 |
Measurement period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE: (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Weighted average dilutive and anti-dilutive securities | ' | ' | ' | ' |
Basic weighted average number of common shares outstanding | 40,266,516 | 39,477,101 | 40,209,752 | 39,476,133 |
Dilution effect of stock-based compensation awards at end of period | 54,572 | ' | 56,279 | ' |
Diluted weighted average number of common shares outstanding | 40,321,088 | 39,477,101 | 40,266,031 | 39,476,133 |
Anti-dilutive stock-based compensation awards (in shares) | 176,436 | ' | 157,934 | ' |
2013 PSU grants | Officers | ' | ' | ' | ' |
EARNINGS PER SHARE | ' | ' | ' | ' |
Measurement period | ' | ' | '3 years | ' |
2013 PSU grants | Officers | Minimum | ' | ' | ' | ' |
EARNINGS PER SHARE | ' | ' | ' | ' |
Ratio at which award holders get common stock of the company | ' | ' | 0 | ' |
2013 PSU grants | Officers | Maximum | ' | ' | ' | ' |
EARNINGS PER SHARE | ' | ' | ' | ' |
Ratio at which award holders get common stock of the company | ' | ' | 2 | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS: (Details) (Revolving credit facility, USD $) | Sep. 30, 2013 | Nov. 06, 2013 |
In Millions, unless otherwise specified | Subsequent event | |
SUBSEQUENT EVENTS | ' | ' |
Maximum borrowing capacity | $600 | $450 |
Bank commitments | $330 | ' |