Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 5-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Bonanza Creek Energy, Inc. | ' |
Entity Central Index Key | '0001509589 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 40,389,592 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $131,343 | $180,582 |
Accounts receivable: | ' | ' |
Oil and gas sales | 66,835 | 57,485 |
Joint interest and other | 16,287 | 12,915 |
Prepaid expenses and other | 4,274 | 1,638 |
Inventory of oilfield equipment | 8,597 | 10,696 |
Derivative asset | 145 | 858 |
Total current assets | 227,481 | 264,174 |
Property and equipment (successful efforts method), at cost: | ' | ' |
Proved properties | 1,395,629 | 1,257,288 |
Less: accumulated depreciation, depletion and amortization | -264,466 | -224,848 |
Total proved properties, net | 1,131,163 | 1,032,440 |
Unproved properties | 14,653 | 45,081 |
Wells in progress | 155,642 | 110,848 |
Natural gas plant, net of accumulated depreciation of $6,541 in 2014 and $5,903 in 2013 | 70,176 | 71,474 |
Other property and equipment, net of accumulated depreciation of $3,500 in 2014 and $2,822 in 2013 | 7,566 | 7,406 |
Oil and gas properties held for sale, net of accumulated depreciation, depletion, and amortization of $ - in 2014 and $1,463 in 2013 (note 4) | ' | 360 |
Total property and equipment, net | 1,379,200 | 1,267,609 |
Long-term derivative asset | ' | 293 |
Other noncurrent assets | 13,463 | 13,859 |
Total assets | 1,620,144 | 1,545,935 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses (note 5) | 168,161 | 121,665 |
Oil and gas revenue distribution payable | 29,230 | 36,241 |
Contractual obligation for land acquisition | 12,000 | 12,000 |
Derivative liability | 11,071 | 5,320 |
Total current liabilities | 220,462 | 175,226 |
Long-term liabilities: | ' | ' |
Senior Notes, net of unamortized premium of $8,540 in 2014 and $8,847 in 2013 | 508,540 | 508,847 |
Contractual obligation for land acquisition | 22,223 | 22,033 |
Ad valorem taxes | 24,002 | 18,867 |
Derivative liability | 997 | 1,203 |
Deferred income taxes, net | 161,152 | 152,681 |
Asset retirement obligations | 10,873 | 11,050 |
Total liabilities | 948,249 | 889,907 |
Commitments and contingencies (Note 7) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $.001 par value, 25,000,000 shares authorized, none outstanding | ' | ' |
Common stock, $.001 par value, 225,000,000 shares authorized,40,395,690 and 40,285,919 issued and outstanding in 2014 and 2013, respectively | 40 | 40 |
Additional paid-in capital | 530,088 | 527,752 |
Retained earnings | 141,767 | 128,236 |
Total stockholders' equity | 671,895 | 656,028 |
Total liabilities and stockholders' equity | $1,620,144 | $1,545,935 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Natural gas plant, accumulated depreciation (in dollars) | $6,541 | $5,903 |
Other property and equipment, accumulated depreciation (in dollars) | 3,500 | 2,822 |
Oil and gas properties held for sale, accumulated depreciation, depletion, and amortization (note 3) (in dollars) | 264,466 | 224,848 |
Senior Notes unamortized premium | 8,540 | 8,847 |
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 | 40,395,690 | 40,285,919 |
Common stock, shares outstanding | 40,395,690 | 40,285,919 |
Assets held for sale | ' | ' |
Oil and gas properties held for sale, accumulated depreciation, depletion, and amortization (note 3) (in dollars) | $0 | $1,463 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating net revenues: | ' | ' |
Oil and gas sales | $127,395 | $78,307 |
Operating expenses: | ' | ' |
Lease operating expenses | 17,082 | 11,131 |
Severance and ad valorem taxes | 10,749 | 4,812 |
Exploration | 1,083 | 562 |
Depreciation, depletion and amortization | 41,132 | 23,363 |
General and administrative (including $6,797 and $4,378 in 2014 and 2013, respectively, of stock compensation) | 23,714 | 13,166 |
Total operating expenses | 93,760 | 53,034 |
Income from operations | 33,635 | 25,273 |
Other income (expense): | ' | ' |
Derivative loss | -8,778 | -5,116 |
Interest expense | -9,335 | -1,963 |
Other income | 51 | 137 |
Total other expense | -18,062 | -6,942 |
Income from continuing operations before taxes | 15,573 | 18,331 |
Income tax expense | -5,996 | -7,058 |
Income from continuing operations | 9,577 | 11,273 |
Discontinued operations (Note 4) | ' | ' |
Loss from operations associated with oil and gas properties held for sale | -85 | -27 |
Gain on sale of oil and gas properties | 6,514 | ' |
Income tax (expense) benefit | -2,475 | 10 |
Gain (loss) from discontinued operations | 3,954 | -17 |
Net income | 13,531 | 11,256 |
Comprehensive income | $13,531 | $11,256 |
Basic and diluted income per share: | ' | ' |
Income from continuing operations (in dollars per share) | $0.24 | $0.28 |
Income (loss) from discontinued operations (in dollars per share) | $0.10 | ' |
Net income per common share (in dollars per share) | $0.34 | $0.28 |
Basic weighted-average common shares outstanding | 39,605,083 | 39,253,743 |
Diluted weighted-average common shares outstanding | 39,761,738 | 39,285,215 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' |
General and administrative, stock compensation | $6,797 | $4,378 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $13,531 | $11,256 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation, depletion and amortization | 41,199 | 23,467 |
Deferred income taxes | 8,471 | 7,048 |
Stock-based compensation | 6,797 | 4,378 |
Amortization of deferred financing costs | 562 | 219 |
Amortization of premium on senior notes | -307 | ' |
Accretion of contractual obligation for land acquisition | 190 | 190 |
Derivative loss | 8,778 | 5,116 |
Gain on sale of oil and gas properties | -6,514 | ' |
Other | -2 | 73 |
Changes in current assets and liabilities: | ' | ' |
Accounts receivable | -12,721 | -6,912 |
Prepaid expenses and other assets | -2,637 | 81 |
Accounts payable and accrued liabilities | 20,337 | -5,068 |
Settlement of asset retirement obligations | ' | -49 |
Net cash provided by operating activities | 77,684 | 39,799 |
Cash flows from investing activities: | ' | ' |
Acquisition of oil and gas properties | -1,202 | -934 |
Proceeds from Sale of Oil and Gas Properties | 6,000 | ' |
Exploration and development of oil and gas properties | -123,835 | -64,334 |
Natural gas plant capital expenditures | -194 | -3,275 |
Derivative cash settlements | -2,227 | -1,507 |
Additions to property and equipment - non oil and gas | -838 | -1,386 |
Net cash used in investing activities | -122,296 | -71,436 |
Cash flows from financing activities: | ' | ' |
Proceeds from credit facility | ' | 33,500 |
Offering costs related to sale of senior subordinated notes | -140 | ' |
Payment of employee tax withholdings in exchange for the return of common stock | -4,461 | -2,908 |
Deferred financing costs | -26 | -52 |
Net cash (used in) provided by financing activities | -4,627 | 30,540 |
Net change in cash and cash equivalents | -49,239 | -1,097 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 180,582 | 4,267 |
End of period | 131,343 | 3,170 |
Supplemental cash flow disclosure: | ' | ' |
Cash paid for interest | 464 | 1,469 |
Changes in working capital related to drilling expenditures, natural gas plant expenditures, and property acquisition | $23,238 | ($5,460) |
ORGANIZATION_AND_BUSINESS
ORGANIZATION AND BUSINESS | 3 Months Ended |
Mar. 31, 2014 | |
ORGANIZATION AND BUSINESS | ' |
ORGANIZATION AND BUSINESS | ' |
NOTE 1 - ORGANIZATION AND BUSINESS | |
Bonanza Creek Energy, Inc. (the “Company” or “BCEI”) is engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. Our oil and liquids weighted assets are concentrated primarily in the Wattenberg Field in Colorado (Rocky Mountain region) and the Dorcheat Macedonia Field in southern Arkansas (Mid-Continent region). |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2014 | |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | ' |
NOTE 2 - BASIS OF PRESENTATION | |
These statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. The quarterly financial statements included herein do not necessarily include all of the disclosures as may be required under generally accepted accounting principles for complete financial statements. There has been no material change in the information disclosed in the notes to the consolidated financial statements included in BCEI’s Annual Report on Form 10-K for the year ended December 31, 2013 (“2013 Form 10-K”), except as disclosed herein. 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. The Company evaluated events subsequent to the balance sheet date of March 31, 2014, through the filing date of this report. Certain prior period amounts are reclassified to conform to the current period presentation, when necessary. | |
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. | |
Significant Accounting Policies | |
The significant accounting policies followed by the Company were set forth in Note 1 to the 2013 Form 10-K and are supplemented by the notes throughout in this report. These unaudited condensed consolidated financial statements should be read in conjunction with the 2013 Form 10-K. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2014 | |
ACQUISITIONS | ' |
ACQUISITIONS | ' |
NOTE 3 - ACQUISITIONS | |
The Company did not complete any material acquisitions during the three months ended March 31, 2014. | |
On July 31, 2012, the Company acquired leases to approximately 5,600 net acres in the Wattenberg Field from the State of Colorado, State Board of Land Commissioners. The Company paid approximately $12 million at closing, $12 million on July 31, 2013, and will pay approximately $12 million on July 31st of each of the next three years. These future payments were discounted based on our effective borrowing rate to arrive at the purchase price of $57 million. These future payments are secured by a $36 million letter of credit as of March 31, 2014 and interest will be imputed on the future payments. Following each payment the amount secured by the letter of credit will be amended each year on July 31st to reflect the reduction in obligation. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
DISCONTINUED OPERATIONS | ' | |||||||
DISCONTINUED OPERATIONS | ' | |||||||
NOTE 4 - DISCONTINUED OPERATIONS | ||||||||
During June of 2012, the Company began marketing, with an intent to sell, all of its oil and gas properties in California classifying them as assets held for sale. 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 all of its assets in a region qualified as discontinued operations. The Company sold its remaining property during the first quarter of 2014 for approximately $6.0 million and recorded a gain on the sale of oil and gas properties in the amount of $6.5 million. The carrying amounts of the remaining properties included within assets held for sale classified as discontinued operations are presented below. | ||||||||
As of | As of | |||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Assets held for sale: | ||||||||
Oil and gas properties, successful efforts method: | ||||||||
Proved properties | $ | — | $ | 1,721 | ||||
Unproved properties | — | 1 | ||||||
Wells in progress | — | 101 | ||||||
Total property and equipment | — | 1,823 | ||||||
Less accumulated depreciation, depletion and amortization | — | (1,463 | ) | |||||
Net property and equipment | $ | — | $ | 360 | ||||
The total revenues, expenses, and income associated with the operation of the oil and gas properties held for sale are presented below. | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Net revenues: | ||||||||
Oil and gas sales | $ | 361 | $ | 438 | ||||
Operating expenses: | ||||||||
Lease operating expense | 366 | 304 | ||||||
Severance and ad valorem taxes | 13 | |||||||
Exploration | 57 | |||||||
Depreciation, depletion and amortization | 67 | 104 | ||||||
Total operating expenses | 446 | 465 | ||||||
Loss from operations associated with oil and gas properties held for sale | $ | (85 | ) | $ | (27 | ) | ||
ACCOUNTS_PAYABLE_AND_ACCRUED_E
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ' | |||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ' | |||||||
NOTE 5 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||||||||
Accounts payable and accrued expenses contain the following: | ||||||||
As of March | As of December | |||||||
31, 2014 | 31, 2013 | |||||||
(in thousands) | ||||||||
Drilling and completion costs | $ | 104,210 | $ | 80,971 | ||||
Accounts payable trade | 17,207 | 3,288 | ||||||
Accrued general and administrative cost | 11,648 | 12,720 | ||||||
Lease operating expense | 4,574 | 5,440 | ||||||
Accrued reclamation cost | 166 | 168 | ||||||
Accrued interest | 15,491 | 7,065 | ||||||
Accrued oil and gas derivatives | 955 | 446 | ||||||
Production and ad valorem taxes and other | 13,910 | 11,567 | ||||||
$ | 168,161 | $ | 121,665 | |||||
REVOLVING_CREDIT_FACILITY
REVOLVING CREDIT FACILITY | 3 Months Ended |
Mar. 31, 2014 | |
REVOLVING CREDIT FACILITY | ' |
REVOLVING CREDIT FACILITY | ' |
NOTE 6 — REVOLVING CREDIT FACILITY | |
The Company’s senior secured revolving Credit Agreement (the “Revolver” or “credit facility”), dated March 29, 2011, as amended, provides for borrowings of up to $600 million. As of March 31, 2014, and through the filing date of this report, the borrowing base under the Revolver was $450 million. The Company elected to limit bank commitments to $330 million while reserving the option to access, at the Company’s request, the full $450 million prior to the next semi-annual redetermination on May 15, 2014. The Revolver is collateralized by substantially all the Company’s assets and matures on September 15, 2018. As of March 31, 2014, and through the filing date of this report, the Company had no outstanding balance under the Revolver with an available borrowing capacity of $414 million after the reduction of the outstanding letter of credit of $36 million. | |
The Revolver 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 minimum current and debt coverage ratios. The Company was in compliance with all financial and non-financial covenants as of March 31, 2014 and through the filing date of this report. | |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2014 | |
COMMITMENTS AND CONTINGENT LIABILITIES | ' |
COMMITMENTS AND CONTINGENT LIABILITIES | ' |
NOTE 7 - COMMITMENTS AND 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 accounting authoritative guidance, 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. No claims have been made, nor is the Company aware of any material uninsured liability which the Company may have, as it relates to any environmental cleanup, restoration or the violation of any rules or regulations. As of the date of this filing, there were no material pending or overtly threatened legal actions against the Company of which it is aware. | |
Commitments | |
There have been no material changes from the commitments disclosed in the notes to the Company’s consolidated financial statements included in the 2013 Form 10-K. | |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2014 | |
STOCK-BASED COMPENSATION | ' |
STOCK-BASED COMPENSATION | ' |
NOTE 8 — STOCK-BASED COMPENSATION | |
Restricted Stock under the Long Term Incentive Plan | |
The Company grants shares of restricted stock, which represents one share of the Company’s common stock vesting in one-third increments over three years. Shares of restricted stock are valued at the closing price of the Company’s common stock on the grant date and are recognized as general and administrative expense over the vesting period of the award. | |
Total expense recorded for restricted stock for the three month periods ended March 31, 2014 and 2013, was $6.6 million and $4.4 million, respectively. As of March 31, 2014, unrecognized compensation cost was $21.7 million and will be amortized through 2017. | |
Performance Stock Units under the Long Term Incentive Plan | |
The Company grants performance stock units (“PSUs”) to certain officers of the Company. The number of shares of the Company’s common stock that may be issued to settle PSUs range 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 PSUs granted during 2013 vest in their entirety at the end of the measurement period. The PSUs granted during 2014 vest at the end of each annual measurement period during the performance cycle up to two-thirds of the target number of PSUs that are eligible for vesting (such that an amount equal to 200% of the target number may be earned during the performance cycle of three years). The PSUs will be settled in shares following the end of the three year performance cycle. | |
Total expense recorded for PSUs for the three month period ended March 31, 2014 was $0.2 million. As of March 31, 2014, there was $3.4 million of total unrecognized compensation expense related to unvested PSUs to be amortized through 2015. There have been no material changes to the outstanding and non-vested PSUs during the quarter ended March 31, 2014. | |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||
NOTE 9 - FAIR VALUE MEASUREMENTS | |||||||||||
The Company follows fair value measurement authoritative guidance for all assets and liabilities measured at fair value, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A hierarchy for inputs is 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. 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, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose inputs are observable or whose significant value drivers are observable | |||||||||||
Level 3: Significant inputs to the valuation model are unobservable | |||||||||||
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 tables present the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2014 and December 31, 2013 and their classification within the fair value hierarchy: | |||||||||||
As of March 31, 2014 | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
(in thousands) | |||||||||||
Derivative assets | $ | — | $ | — | $ | 145 | |||||
Derivative liabilities | $ | — | $ | 3,906 | $ | 8,162 | |||||
As of December 31, 2013 | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
(in thousands) | |||||||||||
Derivative assets | $ | — | $ | 736 | $ | 415 | |||||
Derivative liabilities | $ | — | $ | 1,741 | $ | 4,782 | |||||
Derivatives | |||||||||||
Fair value of all derivative instruments are estimated with industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value of money, 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 derivative arrangements are concentrated with five counterparties all of which are lenders under the Company’s Revolver. | |||||||||||
The following table reflects the activity for the commodity derivatives measured at fair value using Level 3 inputs during the quarter ended March 31, 2014: | |||||||||||
Derivative Asset | Derivative Liability | ||||||||||
(in thousands) | |||||||||||
Beginning balance | $ | 415 | $ | 4,782 | |||||||
Net (decrease) increase in fair value(1) | 478 | 3,774 | |||||||||
Net settlement(1) | (879 | ) | (882 | ) | |||||||
New derivatives | 131 | 488 | |||||||||
Transfers in (out) of Level 3 | — | — | |||||||||
Ending balance | $ | 145 | $ | 8,162 | |||||||
(1) Net (decrease) increase in fair value and net settlements are a component of the derivative gain (loss) line item in the accompanying statements of operations. | |||||||||||
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%. 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 the NYMEX strip pricing, adjusted for basis differentials. Future operating costs are also adjusted as deemed appropriate for these estimates. Proved properties classified as held for sale are valued using a market approach, based on an estimated selling price, as evidenced by the most current bid prices received from third parties. If an estimated selling price is not available, the Company utilizes the income valuation technique discussed above. There were no proved properties measured at fair value at March 31, 2014 or December 31, 2013. | |||||||||||
Unproved Oil and Gas Properties | |||||||||||
Unproved oil and gas property costs are evaluated for impairment and reduced to fair value when there is an indication that the carrying costs may not be recoverable. To measure the fair value of unproved properties, the Company uses Level 3 inputs and the income valuation technique, which takes into account the following significant assumptions: future development plans, risk weighted potential resource recovery, and estimated reserve values. Unproved properties classified as held for sale are valued using a market approach, based on an estimated selling price, as evidenced by the most current bid prices received from third parties. If an estimated selling price is not available, the Company uses the price received for similar acreage in recent transactions by the Company or other market participants in the principal market. There were no unproved properties measured at fair value as of March 31, 2014 or December 31, 2013. | |||||||||||
Asset Retirement Obligation | |||||||||||
The Company utilizes the income valuation technique to determine the fair value of the asset retirement obligation liability at the point of inception by applying a credit-adjusted risk-free rate, which takes into account the Company’s credit risk, the time value of money, and the current economic state, to the undiscounted expected abandonment cash flows. Upon completion of wells and natural gas plants, the Company records an asset retirement obligation at fair value using Level 3 assumptions. Given the unobservable nature of the inputs, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs. There were no asset retirement obligations measured at fair value at March 31, 2014 or December 31, 2013. | |||||||||||
Long-term Debt | |||||||||||
As of March 31, 2014, the Company had $500 million of outstanding 6.75% Senior Notes (the “Senior Notes”). The Senior Notes are recorded at cost net of the unamortized premium on the accompanying balance sheets at $508.5 million and $508.8 million as of March 31, 2014 and December 31, 2013, respectively. The fair value of the Senior Notes as of March 31, 2014 and December 31, 2013 was $526.0 million and $527.5 million, respectively, measured using Level 1 inputs based on a secondary market trading price. The carrying value of the Company’s credit facility approximates fair value, as the applicable interest rates are floating. |
DERIVATIVES
DERIVATIVES | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
DERIVATIVES | ' | ||||||||||||||||||||
DERIVATIVES | ' | ||||||||||||||||||||
NOTE 10 — DERIVATIVES | |||||||||||||||||||||
The Company enters into commodity derivative contracts to mitigate a portion of its exposure to potentially adverse market changes in commodity prices and the associated impact on cash flows. All contracts are entered into for other-than-trading purposes. The Company’s derivatives include swaps and collar arrangements for oil and gas and none of the derivative instruments qualify as having hedging relationships. | |||||||||||||||||||||
As of March 31, 2014, the Company had the following derivative commodity contracts in place: | |||||||||||||||||||||
Settlement | Derivative | Total Volumes | Average Fixed | Average | Average | Average | Fair Market | ||||||||||||||
Period | Instrument | (Bbls/MMBtu | Price | Short Floor | Floor | Ceiling | Value of Asset | ||||||||||||||
per day) | Price | Price | Price | (Liability) | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Oil | |||||||||||||||||||||
2Q 2014 | Swap | 4,126 | $ | 96.2 | (1,599 | ) | |||||||||||||||
3Q 2014 | Swap | 3,870 | $ | 93.04 | (1,623 | ) | |||||||||||||||
4Q 2014 | Swap | 3,870 | $ | 93.04 | (683 | ) | |||||||||||||||
2Q 2014 | Collar | 4,846 | $ | 86.55 | $ | 96.72 | (2,039 | ) | |||||||||||||
3Q 2014 | Collar | 4,326 | $ | 86.16 | $ | 96.57 | (1,464 | ) | |||||||||||||
4Q 2014 | Collar | 4,326 | $ | 86.16 | $ | 96.57 | (824 | ) | |||||||||||||
2Q 2014 | 3-Way Collar | 2,000 | $ | 65 | $ | 87.68 | $ | 99.75 | (442 | ) | |||||||||||
3Q 2014 | 3-Way Collar | 2,000 | $ | 65 | $ | 87.68 | $ | 99.75 | (339 | ) | |||||||||||
4Q 2014 | 3-Way Collar | 2,000 | $ | 65 | $ | 87.68 | $ | 99.75 | (96 | ) | |||||||||||
1Q 2015 | 3-Way Collar | 5,500 | $ | 67.27 | $ | 83.75 | $ | 95.19 | (1,137 | ) | |||||||||||
2Q 2015 | 3-Way Collar | 4,500 | $ | 66.67 | $ | 83.33 | $ | 94.12 | (688 | ) | |||||||||||
3Q 2015 | 3-Way Collar | 4,500 | $ | 66.67 | $ | 83.33 | $ | 94.12 | (342 | ) | |||||||||||
4Q 2015 | 3-Way Collar | 4,500 | $ | 66.67 | $ | 83.33 | $ | 94.12 | (84 | ) | |||||||||||
$ | (11,360 | ) | |||||||||||||||||||
Gas | |||||||||||||||||||||
2Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | $ | 85 | |||||||||||
3Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | $ | (46 | ) | ||||||||||
4Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | $ | (302 | ) | ||||||||||
1Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | $ | (417 | ) | ||||||||||
2Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | $ | 80 | |||||||||||
3Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | $ | 52 | |||||||||||
4Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | $ | (15 | ) | ||||||||||
$ | (563 | ) | |||||||||||||||||||
Total | $ | (11,923 | ) | ||||||||||||||||||
As of the date of filing we had the following economic derivatives in place, which settle monthly: | |||||||||||||||||||||
Settlement | Derivative | Total Volumes | Average Fixed | Average Short | Average | Average | |||||||||||||||
Period | Instrument | (Bbls/MMBtu | Price | Floor Price | Floor | Ceiling | |||||||||||||||
per day) | Price | Price | |||||||||||||||||||
Oil | |||||||||||||||||||||
2Q 2014 | Swap | 4,126 | $ | 96.2 | |||||||||||||||||
3Q 2014 | Swap | 3,870 | $ | 93.04 | |||||||||||||||||
4Q 2014 | Swap | 4,370 | $ | 93.47 | |||||||||||||||||
1Q 2015 | Swap | 2,000 | $ | 92.22 | |||||||||||||||||
2Q 2015 | Swap | 1,000 | $ | 90.4 | |||||||||||||||||
3Q 2015 | Swap | 1,000 | $ | 90.4 | |||||||||||||||||
4Q 2015 | Swap | 1,000 | $ | 90.4 | |||||||||||||||||
2Q 2014 | Collar | 4,846 | $ | 86.55 | $ | 96.72 | |||||||||||||||
3Q 2014 | Collar | 4,326 | $ | 86.16 | $ | 96.57 | |||||||||||||||
4Q 2014 | Collar | 4,326 | $ | 86.16 | $ | 96.57 | |||||||||||||||
2Q 2014 | 3-Way Collar | 2,000 | $ | 65 | $ | 87.68 | $ | 99.75 | |||||||||||||
3Q 2014 | 3-Way Collar | 2,000 | $ | 65 | $ | 87.68 | $ | 99.75 | |||||||||||||
4Q 2014 | 3-Way Collar | 2,000 | $ | 65 | $ | 87.68 | $ | 99.75 | |||||||||||||
1Q 2015 | 3-Way Collar | 5,500 | $ | 67.27 | $ | 83.75 | $ | 95.19 | |||||||||||||
2Q 2015 | 3-Way Collar | 4,500 | $ | 66.67 | $ | 83.33 | $ | 94.12 | |||||||||||||
3Q 2015 | 3-Way Collar | 4,500 | $ | 66.67 | $ | 83.33 | $ | 94.12 | |||||||||||||
4Q 2015 | 3-Way Collar | 4,500 | $ | 66.67 | $ | 83.33 | $ | 94.12 | |||||||||||||
Gas | |||||||||||||||||||||
2Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | |||||||||||||
3Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | |||||||||||||
4Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | |||||||||||||
1Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | |||||||||||||
2Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | |||||||||||||
3Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | |||||||||||||
4Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | |||||||||||||
Derivative Assets and Liabilities Fair Value | |||||||||||||||||||||
The Company’s commodity derivatives are measured at fair value and are included in the accompanying balance sheets as derivative assets and liabilities. | |||||||||||||||||||||
The following table contains a summary of all the Company’s derivative positions reported on the accompanying balance sheets as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||
Balance Sheet Location | Fair Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||
Commodity contracts | Current assets | $ | 145 | ||||||||||||||||||
Commodity contracts | Noncurrent assets | — | |||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||
Commodity contracts | Current liabilities | (11,071 | ) | ||||||||||||||||||
Commodity contracts | Long-term liabilities | (997 | ) | ||||||||||||||||||
Total net derivative liability | $ | (11,923 | ) | ||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Balance Sheet Location | Fair Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||
Commodity contracts | Current assets | $ | 858 | ||||||||||||||||||
Commodity contracts | Noncurrent assets | 293 | |||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||
Commodity contracts | Current liabilities | (5,320 | ) | ||||||||||||||||||
Commodity contracts | Long-term liabilities | (1,203 | ) | ||||||||||||||||||
Total net derivative liability | $ | (5,372 | ) | ||||||||||||||||||
The following table summarizes the components of the derivative gain (loss) presented on the accompanying statements of operations: | |||||||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Derivative cash settlement gain (loss): | |||||||||||||||||||||
Oil contracts | $ | (1,699 | ) | $ | (1,651 | ) | |||||||||||||||
Gas contracts | (528 | ) | 144 | ||||||||||||||||||
Total derivative cash settlement (loss)(1) | $ | (2,227 | ) | $ | (1,507 | ) | |||||||||||||||
Change in fair value gain (loss) | $ | (6,551 | ) | $ | (3,609 | ) | |||||||||||||||
Total derivative gain (loss)(2) | $ | (8,778 | ) | $ | (5,116 | ) | |||||||||||||||
(1) Derivative cash settlement gain (loss) is reported in the derivative cash settlements line item on the accompanying statements of cash flows within the net cash used in investing activities. | |||||||||||||||||||||
(2) Total derivative gain (loss) is reported in the derivative gain (loss) line item on the accompanying statements of cash flows within the net cash provided by operating activities. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
EARNINGS PER SHARE | ' | |||||||
EARNINGS PER SHARE | ' | |||||||
NOTE 11 — EARNINGS PER SHARE | ||||||||
The Company issues shares of restricted stock entitling the holders to receive non-forfeitable dividends, if and when, the Company were to declare a dividend, before vesting, thus making the awards participating securities. The awards are included in the calculation of earnings per share under the two-class method. The two-class method allocates earnings for the period between common shareholders and unvested participating shareholders. | ||||||||
The following table sets forth the calculation of earnings per basic and diluted shares from continuing and discontinued operations for the three-month periods ended March 31, 2014 and 2013: | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except per share amounts) | ||||||||
Income from continuing operations: | ||||||||
Income from continuing operations | $ | 9,577 | $ | 11,273 | ||||
Less: undistributed earnings to unvested restricted stock | 181 | 242 | ||||||
Undistributed earnings to common shareholders | 9,396 | 11,031 | ||||||
Basic income per common share from continuing operations | $ | 0.24 | $ | 0.28 | ||||
Diluted income per common share from continuing operations | $ | 0.24 | $ | 0.28 | ||||
Income (loss) from discontinued operations: | ||||||||
Income (loss) from discontinued operations | $ | 3,954 | $ | (17 | ) | |||
Less: undistributed earnings to unvested restricted stock | 75 | (1 | ) | |||||
Undistributed earnings (loss) to common shareholders | 3,879 | (16 | ) | |||||
Basic loss per common share from discontinued operations | $ | 0.1 | $ | 0 | ||||
Diluted loss per common share from discontinued operations | $ | 0.1 | $ | 0 | ||||
Net income: | ||||||||
Net income | $ | 13,531 | $ | 11,256 | ||||
Less: undistributed earnings to unvested restricted stock | 256 | 241 | ||||||
Undistributed earnings to common shareholders | 13,275 | 11,015 | ||||||
Basic net income per common share | $ | 0.34 | $ | 0.28 | ||||
Diluted net income per common share | $ | 0.34 | $ | 0.28 | ||||
Weighted-average shares outstanding - basic | 39,605,083 | 39,253,743 | ||||||
Add: dilutive effect of contingent PSUs | 156,655 | 31,472 | ||||||
Weighted-average shares outstanding - diluted | 39,761,738 | 39,285,215 | ||||||
The Company had no anti-dilutive shares for the quarters ended March 31, 2014 and 2013. |
INCOME_TAXES
INCOME TAXES: | 3 Months Ended |
Mar. 31, 2014 | |
INCOME TAXES: | ' |
INCOME TAXES: | ' |
NOTE 12 - INCOME TAXES: | |
The Company uses the asset and liability method of accounting for deferred income taxes. Deferred tax assets and liabilities are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities. Deferred tax assets or liabilities at the end of each period are determined using the tax rate in effect at that time. During the three month periods ended March 31, 2014 and 2013 the effective tax rate was 38.5% and 38.5%, respectively. | |
The deferred income tax liability for an oil and gas exploration company is dependent on many variables such as estimating the economic lives of depleting oil and gas reserves and commodity prices. Accordingly, the liability is subject to continual recalculation, revision of the numerous estimates required, and may change significantly in the event of such things as major acquisitions, divestitures, product price changes, changes in reserve estimates, changes in reserve lives, and changes in tax rates or tax laws. | |
The Company has not taken any uncertain tax positions and has no valuation allowances. | |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
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. | |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
The significant accounting policies followed by the Company were set forth in Note 1 to the 2013 Form 10-K and are supplemented by the notes throughout in this report. These unaudited condensed consolidated financial statements should be read in conjunction with the 2013 Form 10-K. |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
DISCONTINUED OPERATIONS | ' | |||||||
Schedule of the carrying amounts of the remaining properties included within assets held for sale classified as discontinued operations | ' | |||||||
As of | As of | |||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Assets held for sale: | ||||||||
Oil and gas properties, successful efforts method: | ||||||||
Proved properties | $ | — | $ | 1,721 | ||||
Unproved properties | — | 1 | ||||||
Wells in progress | — | 101 | ||||||
Total property and equipment | — | 1,823 | ||||||
Less accumulated depreciation, depletion and amortization | — | (1,463 | ) | |||||
Net property and equipment | $ | — | $ | 360 | ||||
Schedule of revenues and expenses, and the income associated with the operation of the oil and gas properties held for sale | ' | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Net revenues: | ||||||||
Oil and gas sales | $ | 361 | $ | 438 | ||||
Operating expenses: | ||||||||
Lease operating expense | 366 | 304 | ||||||
Severance and ad valorem taxes | 13 | |||||||
Exploration | 57 | |||||||
Depreciation, depletion and amortization | 67 | 104 | ||||||
Total operating expenses | 446 | 465 | ||||||
Loss from operations associated with oil and gas properties held for sale | $ | (85 | ) | $ | (27 | ) | ||
ACCOUNTS_PAYABLE_AND_ACCRUED_E1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ' | |||||||
Schedule of accounts payable and accrued expenses | ' | |||||||
As of March | As of December | |||||||
31, 2014 | 31, 2013 | |||||||
(in thousands) | ||||||||
Drilling and completion costs | $ | 104,210 | $ | 80,971 | ||||
Accounts payable trade | 17,207 | 3,288 | ||||||
Accrued general and administrative cost | 11,648 | 12,720 | ||||||
Lease operating expense | 4,574 | 5,440 | ||||||
Accrued reclamation cost | 166 | 168 | ||||||
Accrued interest | 15,491 | 7,065 | ||||||
Accrued oil and gas derivatives | 955 | 446 | ||||||
Production and ad valorem taxes and other | 13,910 | 11,567 | ||||||
$ | 168,161 | $ | 121,665 | |||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||
Schedule of financial assets and liabilities at fair value on recurring basis | ' | ||||||||||
As of March 31, 2014 | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
(in thousands) | |||||||||||
Derivative assets | $ | — | $ | — | $ | 145 | |||||
Derivative liabilities | $ | — | $ | 3,906 | $ | 8,162 | |||||
As of December 31, 2013 | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
(in thousands) | |||||||||||
Derivative assets | $ | — | $ | 736 | $ | 415 | |||||
Derivative liabilities | $ | — | $ | 1,741 | $ | 4,782 | |||||
Schedule of activity for commodity derivatives measured at fair value using Level 3 inputs | ' | ||||||||||
Derivative Asset | Derivative Liability | ||||||||||
(in thousands) | |||||||||||
Beginning balance | $ | 415 | $ | 4,782 | |||||||
Net (decrease) increase in fair value(1) | 478 | 3,774 | |||||||||
Net settlement(1) | (879 | ) | (882 | ) | |||||||
New derivatives | 131 | 488 | |||||||||
Transfers in (out) of Level 3 | — | — | |||||||||
Ending balance | $ | 145 | $ | 8,162 | |||||||
(1) Net (decrease) increase in fair value and net settlements are a component of the derivative gain (loss) line item in the accompanying statements of operations. | |||||||||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
DERIVATIVES | ' | ||||||||||||||||||||
Summary of derivative commodity contracts in place | ' | ||||||||||||||||||||
As of March 31, 2014, the Company had the following derivative commodity contracts in place: | |||||||||||||||||||||
Settlement | Derivative | Total Volumes | Average Fixed | Average | Average | Average | Fair Market | ||||||||||||||
Period | Instrument | (Bbls/MMBtu | Price | Short Floor | Floor | Ceiling | Value of Asset | ||||||||||||||
per day) | Price | Price | Price | (Liability) | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Oil | |||||||||||||||||||||
2Q 2014 | Swap | 4,126 | $ | 96.2 | (1,599 | ) | |||||||||||||||
3Q 2014 | Swap | 3,870 | $ | 93.04 | (1,623 | ) | |||||||||||||||
4Q 2014 | Swap | 3,870 | $ | 93.04 | (683 | ) | |||||||||||||||
2Q 2014 | Collar | 4,846 | $ | 86.55 | $ | 96.72 | (2,039 | ) | |||||||||||||
3Q 2014 | Collar | 4,326 | $ | 86.16 | $ | 96.57 | (1,464 | ) | |||||||||||||
4Q 2014 | Collar | 4,326 | $ | 86.16 | $ | 96.57 | (824 | ) | |||||||||||||
2Q 2014 | 3-Way Collar | 2,000 | $ | 65 | $ | 87.68 | $ | 99.75 | (442 | ) | |||||||||||
3Q 2014 | 3-Way Collar | 2,000 | $ | 65 | $ | 87.68 | $ | 99.75 | (339 | ) | |||||||||||
4Q 2014 | 3-Way Collar | 2,000 | $ | 65 | $ | 87.68 | $ | 99.75 | (96 | ) | |||||||||||
1Q 2015 | 3-Way Collar | 5,500 | $ | 67.27 | $ | 83.75 | $ | 95.19 | (1,137 | ) | |||||||||||
2Q 2015 | 3-Way Collar | 4,500 | $ | 66.67 | $ | 83.33 | $ | 94.12 | (688 | ) | |||||||||||
3Q 2015 | 3-Way Collar | 4,500 | $ | 66.67 | $ | 83.33 | $ | 94.12 | (342 | ) | |||||||||||
4Q 2015 | 3-Way Collar | 4,500 | $ | 66.67 | $ | 83.33 | $ | 94.12 | (84 | ) | |||||||||||
$ | (11,360 | ) | |||||||||||||||||||
Gas | |||||||||||||||||||||
2Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | $ | 85 | |||||||||||
3Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | $ | (46 | ) | ||||||||||
4Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | $ | (302 | ) | ||||||||||
1Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | $ | (417 | ) | ||||||||||
2Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | $ | 80 | |||||||||||
3Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | $ | 52 | |||||||||||
4Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | $ | (15 | ) | ||||||||||
$ | (563 | ) | |||||||||||||||||||
Total | $ | (11,923 | ) | ||||||||||||||||||
Summary of economic derivatives in place, which settle monthly | ' | ||||||||||||||||||||
Settlement | Derivative | Total Volumes | Average Fixed | Average Short | Average | Average | |||||||||||||||
Period | Instrument | (Bbls/MMBtu | Price | Floor Price | Floor | Ceiling | |||||||||||||||
per day) | Price | Price | |||||||||||||||||||
Oil | |||||||||||||||||||||
2Q 2014 | Swap | 4,126 | $ | 96.2 | |||||||||||||||||
3Q 2014 | Swap | 3,870 | $ | 93.04 | |||||||||||||||||
4Q 2014 | Swap | 4,370 | $ | 93.47 | |||||||||||||||||
1Q 2015 | Swap | 2,000 | $ | 92.22 | |||||||||||||||||
2Q 2015 | Swap | 1,000 | $ | 90.4 | |||||||||||||||||
3Q 2015 | Swap | 1,000 | $ | 90.4 | |||||||||||||||||
4Q 2015 | Swap | 1,000 | $ | 90.4 | |||||||||||||||||
2Q 2014 | Collar | 4,846 | $ | 86.55 | $ | 96.72 | |||||||||||||||
3Q 2014 | Collar | 4,326 | $ | 86.16 | $ | 96.57 | |||||||||||||||
4Q 2014 | Collar | 4,326 | $ | 86.16 | $ | 96.57 | |||||||||||||||
2Q 2014 | 3-Way Collar | 2,000 | $ | 65 | $ | 87.68 | $ | 99.75 | |||||||||||||
3Q 2014 | 3-Way Collar | 2,000 | $ | 65 | $ | 87.68 | $ | 99.75 | |||||||||||||
4Q 2014 | 3-Way Collar | 2,000 | $ | 65 | $ | 87.68 | $ | 99.75 | |||||||||||||
1Q 2015 | 3-Way Collar | 5,500 | $ | 67.27 | $ | 83.75 | $ | 95.19 | |||||||||||||
2Q 2015 | 3-Way Collar | 4,500 | $ | 66.67 | $ | 83.33 | $ | 94.12 | |||||||||||||
3Q 2015 | 3-Way Collar | 4,500 | $ | 66.67 | $ | 83.33 | $ | 94.12 | |||||||||||||
4Q 2015 | 3-Way Collar | 4,500 | $ | 66.67 | $ | 83.33 | $ | 94.12 | |||||||||||||
Gas | |||||||||||||||||||||
2Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | |||||||||||||
3Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | |||||||||||||
4Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | |||||||||||||
1Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | |||||||||||||
2Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | |||||||||||||
3Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | |||||||||||||
4Q 2015 | 3-Way Collar | 15,000 | $ | 3.5 | $ | 4 | $ | 4.75 | |||||||||||||
Summary of all the Company's derivative positions reported on the accompanying balance sheets | ' | ||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||
Balance Sheet Location | Fair Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||
Commodity contracts | Current assets | $ | 145 | ||||||||||||||||||
Commodity contracts | Noncurrent assets | — | |||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||
Commodity contracts | Current liabilities | (11,071 | ) | ||||||||||||||||||
Commodity contracts | Long-term liabilities | (997 | ) | ||||||||||||||||||
Total net derivative liability | $ | (11,923 | ) | ||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Balance Sheet Location | Fair Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||
Commodity contracts | Current assets | $ | 858 | ||||||||||||||||||
Commodity contracts | Noncurrent assets | 293 | |||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||
Commodity contracts | Current liabilities | (5,320 | ) | ||||||||||||||||||
Commodity contracts | Long-term liabilities | (1,203 | ) | ||||||||||||||||||
Total net derivative liability | $ | (5,372 | ) | ||||||||||||||||||
Summary of the components of the derivative gain (loss) presented on the accompanying statements of operations | ' | ||||||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Derivative cash settlement gain (loss): | |||||||||||||||||||||
Oil contracts | $ | (1,699 | ) | $ | (1,651 | ) | |||||||||||||||
Gas contracts | (528 | ) | 144 | ||||||||||||||||||
Total derivative cash settlement (loss)(1) | $ | (2,227 | ) | $ | (1,507 | ) | |||||||||||||||
Change in fair value gain (loss) | $ | (6,551 | ) | $ | (3,609 | ) | |||||||||||||||
Total derivative gain (loss)(2) | $ | (8,778 | ) | $ | (5,116 | ) | |||||||||||||||
(1) Derivative cash settlement gain (loss) is reported in the derivative cash settlements line item on the accompanying statements of cash flows within the net cash used in investing activities. | |||||||||||||||||||||
(2) Total derivative gain (loss) is reported in the derivative gain (loss) line item on the accompanying statements of cash flows within the net cash provided by operating activities. | |||||||||||||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
EARNINGS PER SHARE | ' | |||||||
Schedule of calculation of earnings per basic and diluted shares from continuing and discontinued operations | ' | |||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except per share amounts) | ||||||||
Income from continuing operations: | ||||||||
Income from continuing operations | $ | 9,577 | $ | 11,273 | ||||
Less: undistributed earnings to unvested restricted stock | 181 | 242 | ||||||
Undistributed earnings to common shareholders | 9,396 | 11,031 | ||||||
Basic income per common share from continuing operations | $ | 0.24 | $ | 0.28 | ||||
Diluted income per common share from continuing operations | $ | 0.24 | $ | 0.28 | ||||
Income (loss) from discontinued operations: | ||||||||
Income (loss) from discontinued operations | $ | 3,954 | $ | (17 | ) | |||
Less: undistributed earnings to unvested restricted stock | 75 | (1) | ||||||
Undistributed earnings (loss) to common shareholders | 3,879 | (16 | ) | |||||
Basic loss per common share from discontinued operations | $ | 0.1 | $ | 0 | ||||
Diluted loss per common share from discontinued operations | $ | 0.1 | $ | 0 | ||||
Net income: | ||||||||
Net income | $ | 13,531 | $ | 11,256 | ||||
Less: undistributed earnings to unvested restricted stock | 256 | 241 | ||||||
Undistributed earnings to common shareholders | 13,275 | 11,015 | ||||||
Basic net income per common share | $ | 0.34 | $ | 0.28 | ||||
Diluted net income per common share | $ | 0.34 | $ | 0.28 | ||||
Weighted-average shares outstanding - basic | 39,605,083 | 39,253,743 | ||||||
Add: dilutive effect of contingent PSUs | 156,655 | 31,472 | ||||||
Weighted-average shares outstanding - diluted | 39,761,738 | 39,285,215 | ||||||
ACQUISITIONS_Details
ACQUISITIONS (Details) (Acquired leases in Wattenberg field, USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Mar. 31, 2014 |
acre | |||
Acquired leases in Wattenberg field | ' | ' | ' |
ACQUISITIONS | ' | ' | ' |
Area of acquired leases (in acres) | ' | 5,600 | ' |
Annual cash payment | $12 | $12 | ' |
Future annual cash payment | 12 | ' | ' |
Purchase price | ' | 57 | ' |
Number of periods over which cash payments are made | '3 years | ' | ' |
Letter of credit | ' | ' | $36 |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
DISCONTINUED OPERATIONS | ' | ' | ' | ' |
Period within which sale of asset takes place to classify it as held for sale | '1 year | ' | ' | ' |
ACQUISTIONS AND DIVESTITURES | ' | ' | ' | ' |
Proceeds from sale of oil and gas properties | ' | $6,000 | ' | ' |
Gain on sale of oil and gas properties | ' | 6,514 | ' | ' |
Oil and gas properties, successful efforts method: | ' | ' | ' | ' |
Proved properties | ' | 1,395,629 | ' | 1,257,288 |
Unproved properties | ' | 14,653 | ' | 45,081 |
Wells in progress | ' | 155,642 | ' | 110,848 |
Less accumulated depreciation, depletion and amortization | ' | -264,466 | ' | -224,848 |
Net revenues: | ' | ' | ' | ' |
Oil and gas sales | ' | 127,395 | 78,307 | ' |
Operating expenses: | ' | ' | ' | ' |
Lease operating expense | ' | 17,082 | 11,131 | ' |
Severance and ad valorem taxes | ' | 10,749 | 4,812 | ' |
Exploration | ' | 1,083 | 562 | ' |
Depreciation, depletion and amortization | ' | 41,132 | 23,363 | ' |
Total operating expenses | ' | 93,760 | 53,034 | ' |
Loss from operations associated with oil and gas properties held for sale | ' | -85 | -27 | ' |
Oil and gas properties in California | ' | ' | ' | ' |
Oil and gas properties, successful efforts method: | ' | ' | ' | ' |
Proved properties | ' | ' | ' | 1,721 |
Unproved properties | ' | ' | ' | 1 |
Wells in progress | ' | ' | ' | 101 |
Total property and equipment | ' | ' | ' | 1,823 |
Less accumulated depreciation, depletion and amortization | ' | ' | ' | -1,463 |
Net property and equipment | ' | ' | ' | 360 |
Net revenues: | ' | ' | ' | ' |
Oil and gas sales | ' | 361 | 438 | ' |
Operating expenses: | ' | ' | ' | ' |
Lease operating expense | ' | 366 | 304 | ' |
Severance and ad valorem taxes | ' | 13 | ' | ' |
Exploration | ' | ' | 57 | ' |
Depreciation, depletion and amortization | ' | 67 | 104 | ' |
Total operating expenses | ' | 446 | 465 | ' |
Loss from operations associated with oil and gas properties held for sale | ' | ($85) | ($27) | ' |
ACCOUNTS_PAYABLE_AND_ACCRUED_E2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Accounts payable and accrued expenses contain the following: | ' | ' |
Drilling and completion costs | $104,210 | $80,971 |
Accounts payable trade | 17,207 | 3,288 |
Accrued general and administrative cost | 11,648 | 12,720 |
Lease operating expense | 4,574 | 5,440 |
Accrued reclamation cost | 166 | 168 |
Accrued interest | 15,491 | 7,065 |
Accrued oil and gas derivatives | 955 | 446 |
Production and ad valorem taxes and other | 13,910 | 11,567 |
Total accounts payable and accrued expenses | $168,161 | $121,665 |
REVOLVING_CREDIT_FACILITY_Deta
REVOLVING CREDIT FACILITY (Details) (Revolver, USD $) | Mar. 31, 2014 | Mar. 29, 2011 |
In Millions, unless otherwise specified | ||
Revolver | ' | ' |
LONG-TERM DEBT | ' | ' |
Maximum borrowing capacity | ' | $600 |
Borrowing base | 450 | ' |
Bank commitments | 330 | ' |
Long-term debt | 0 | ' |
Remaining borrowing capacity | 414 | ' |
Letters of credit outstanding | $36 | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
PSUs | ' | ' |
STOCK-BASED COMPENSATION | ' | ' |
Vesting percent | 66.67% | ' |
Percentage of awards earned during performance cycle | 200.00% | ' |
Performance cycle period | '3 years | ' |
2011 Long Term Incentive Plan | Restricted shares | ' | ' |
STOCK-BASED COMPENSATION | ' | ' |
Ratio of restricted stock to common stock to be released from restrictions upon completion of the vesting period | 1 | ' |
Vesting portion of shares | 0.3333 | ' |
Vesting period | '3 years | ' |
Stock-based compensation expense | $6.60 | $4.40 |
Unrecognized compensation cost | 21.7 | ' |
2011 Long Term Incentive Plan | PSUs | Officers | ' | ' |
STOCK-BASED COMPENSATION | ' | ' |
Stock-based compensation expense | 0.2 | ' |
Unrecognized compensation cost | $3.40 | ' |
Measurement period | '3 years | ' |
2011 Long Term Incentive Plan | PSUs | Officers | Minimum | ' | ' |
STOCK-BASED COMPENSATION | ' | ' |
Ratio at which award holders get common stock of the company | 0 | ' |
2011 Long Term Incentive Plan | PSUs | Officers | Maximum | ' | ' |
STOCK-BASED COMPENSATION | ' | ' |
Ratio at which award holders get common stock of the company | 2 | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets and liabilities accounted for at fair value | ' | ' |
Total number of counterparties in derivative financial instruments | 5 | ' |
Recurring | Level 2 | ' | ' |
Financial assets and liabilities accounted for at fair value | ' | ' |
Derivative assets | ' | $736 |
Derivative liabilities | 3,906 | 1,741 |
Recurring | Level 3 | ' | ' |
Financial assets and liabilities accounted for at fair value | ' | ' |
Derivative assets | 145 | 415 |
Derivative liabilities | $8,162 | $4,782 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (Commodity derivatives, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Commodity derivatives | ' |
Derivative Asset | ' |
Beginning net asset (liability) balance | $415 |
Net (decrease) increase in fair value | 478 |
Net settlement | -879 |
New derivatives | 131 |
Ending net asset (liability) balance | 145 |
Derivative Liability | ' |
Beginning net asset (liability) balance | 4,782 |
Net (decrease) increase in fair value | 3,774 |
Net realized (loss) on settlement | -882 |
New derivatives | 488 |
Ending net asset (liability) balance | $8,162 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 3) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Proved Oil and Gas Properties | ' | ' |
Estimated discount rate to measure fair value of proved oil and gas properties (as a percent) | 10.00% | ' |
Proved properties | $1,395,629,000 | $1,257,288,000 |
Unproved properties | 14,653,000 | 45,081,000 |
Asset retirement obligations | 10,873,000 | 11,050,000 |
Senior Notes | ' | ' |
Proved Oil and Gas Properties | ' | ' |
Outstanding amount | 500,000,000 | ' |
Long-term debt | 508,500,000 | 508,800,000 |
Interest rate (as a percent) | 6.75% | ' |
Fair Value | ' | ' |
Proved Oil and Gas Properties | ' | ' |
Proved properties | 0 | 0 |
Unproved properties | 0 | 0 |
Asset retirement obligations | 0 | 0 |
Fair value of Senior Notes | $526,000,000 | $527,500,000 |
DERIVATIVES_Details
DERIVATIVES (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | 10-May-14 | 10-May-14 | 10-May-14 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 | 10-May-14 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | item | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts |
Oil | Gas contracts | Swap | Swap | Swap | Swap | Swap | Swap | Swap | Swap | Swap | Swap | Collar | Collar | Collar | Collar | Collar | Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | 3-Way Collar | ||||
Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Gas contracts | Gas contracts | Gas contracts | Gas contracts | Gas contracts | Gas contracts | Gas contracts | Gas contracts | Gas contracts | Gas contracts | Gas contracts | Gas contracts | Gas contracts | Gas contracts | ||||||
2Q 2014 | 2Q 2014 | 3Q 2014 | 3Q 2014 | 4Q 2014 | 4Q 2014 | 1Q 2015 | 2Q 2015 | 3Q 2015 | 4Q 2015 | 2Q 2014 | 2Q 2014 | 3Q 2014 | 3Q 2014 | 4Q 2014 | 4Q 2014 | 2Q 2014 | 2Q 2014 | 3Q 2014 | 3Q 2014 | 4Q 2014 | 4Q 2014 | 1Q 2015 | 1Q 2015 | 2Q 2015 | 2Q 2015 | 3Q 2015 | 3Q 2015 | 4Q 2015 | 4Q 2015 | 2Q 2014 | 2Q 2014 | 3Q 2014 | 3Q 2014 | 4Q 2014 | 4Q 2014 | 1Q 2015 | 1Q 2015 | 2Q 2015 | 2Q 2015 | 3Q 2015 | 3Q 2015 | 4Q 2015 | 4Q 2015 | ||||||
DERIVATIVES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of derivative instruments qualified for hedging instruments | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Volumes (in units per day) | ' | ' | ' | ' | ' | 4,126 | 4,126 | 3,870 | 3,870 | 4,370 | 3,870 | 2,000 | 1,000 | 1,000 | 1,000 | 4,846 | 4,846 | 4,326 | 4,326 | 4,326 | 4,326 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 5,500 | 5,500 | 4,500 | 4,500 | 4,500 | 4,500 | 4,500 | 4,500 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 |
Average Fixed Price | ' | ' | ' | ' | ' | 96.2 | 96.2 | 93.04 | 93.04 | 93.47 | 93.04 | 92.22 | 90.4 | 90.4 | 90.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average Short Floor Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65 | 65 | 65 | 65 | 65 | 65 | 67.27 | 67.27 | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 | 3.63 | 3.63 | 3.63 | 3.63 | 3.63 | 3.63 | 3.5 | 3.5 | 3.5 | 3.5 | 3.5 | 3.5 | 3.5 | 3.5 |
Average Floor Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86.55 | 86.55 | 86.16 | 86.16 | 86.16 | 86.16 | 87.68 | 87.68 | 87.68 | 87.68 | 87.68 | 87.68 | 83.75 | 83.75 | 83.33 | 83.33 | 83.33 | 83.33 | 83.33 | 83.33 | 4.21 | 4.21 | 4.21 | 4.21 | 4.21 | 4.21 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 |
Average Ceiling Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 96.72 | 96.72 | 96.57 | 96.57 | 96.57 | 96.57 | 99.75 | 99.75 | 99.75 | 99.75 | 99.75 | 99.75 | 95.19 | 95.19 | 94.12 | 94.12 | 94.12 | 94.12 | 94.12 | 94.12 | 4.81 | 4.81 | 4.81 | 4.81 | 4.81 | 4.81 | 4.75 | 4.75 | 4.75 | 4.75 | 4.75 | 4.75 | 4.75 | 4.75 |
Fair Value of Asset (Liability) | ' | ($11,923) | ($5,372) | ($11,360) | ($563) | ' | ($1,599) | ' | ($1,623) | ' | ($683) | ' | ' | ' | ' | ' | ($2,039) | ' | ($1,464) | ' | ($824) | ' | ($442) | ' | ($339) | ' | ($96) | ' | ($1,137) | ' | ($688) | ' | ($342) | ' | ($84) | ' | $85 | ' | ($46) | ' | ($302) | ' | ($417) | ' | $80 | ' | $52 | ' | ($15) |
DERIVATIVES_Details_2
DERIVATIVES (Details 2) (Commodity contracts, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives measured at fair value | ' | ' |
Total net derivative liability | ($11,923) | ($5,372) |
Current assets | ' | ' |
Derivatives measured at fair value | ' | ' |
Derivative Assets | 145 | 858 |
Noncurrent assets | ' | ' |
Derivatives measured at fair value | ' | ' |
Derivative Assets | ' | 293 |
Current liabilities | ' | ' |
Derivatives measured at fair value | ' | ' |
Derivative Liabilities | -11,071 | -5,320 |
Long-term liabilities | ' | ' |
Derivatives measured at fair value | ' | ' |
Derivative Liabilities | ($997) | ($1,203) |
DERIVATIVES_Details_3
DERIVATIVES (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Components of the derivative gain (loss) | ' | ' |
Derivative gain (loss) | ($8,778) | ($5,116) |
Commodity contracts | ' | ' |
Components of the derivative gain (loss) | ' | ' |
Derivative cash settlement gain (loss) | -2,227 | -1,507 |
Change in fair value gain (loss) | -6,551 | -3,609 |
Derivative gain (loss) | -8,778 | -5,116 |
Commodity contracts | Oil contracts | ' | ' |
Components of the derivative gain (loss) | ' | ' |
Derivative cash settlement gain (loss) | -1,699 | -1,651 |
Commodity contracts | Gas contracts | ' | ' |
Components of the derivative gain (loss) | ' | ' |
Derivative cash settlement gain (loss) | ($528) | $144 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income from continuing operations: | ' | ' |
Income from continuing operations | $9,577 | $11,273 |
Less: undistributed earnings to unvested restricted stock | 181 | 242 |
Undistributed earnings to common shareholders | 9,396 | 11,031 |
Basic income per common share from continuing operations (in dollars per share) | $0.24 | $0.28 |
Diluted income per common share from continuing operations (in dollars per share) | $0.24 | $0.28 |
Income (loss) from discontinued operations: | ' | ' |
Income (loss) from discontinued operations | 3,954 | -17 |
Less: undistributed earnings to unvested restricted stock | 75 | -1 |
Undistributed earnings (loss) to common shareholders | 3,879 | -16 |
Basic loss per common share from discontinued operations (in dollars per share) | $0.10 | $0 |
Diluted loss per common share from discontinued operations (in dollars per share) | $0.10 | $0 |
Net income: | ' | ' |
Net Income | 13,531 | 11,256 |
Less: undistributed earnings to unvested restricted stock | 256 | 241 |
Undistributed earnings to common shareholders | $13,275 | $11,015 |
Basic net income per common share (in dollars per share) | $0.34 | $0.28 |
Diluted net income per common share (in dollars per share) | $0.34 | $0.28 |
Weighted-average shares outstanding - basic | 39,605,083 | 39,253,743 |
Add: dilutive effect of contingent PSUs | 156,655 | 31,472 |
Weighted-average shares outstanding - diluted | 39,761,738 | 39,285,215 |
Antidilutive shares | 0 | 0 |
INCOME_TAXES_Details
INCOME TAXES: (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Reconciliation of effective tax rate to expected federal tax rate | ' | ' |
Effective tax rate (as a percent) | 38.50% | 38.50% |
Valuation allowances | $0 | ' |