Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 2014 | |
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-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 | ' | 41,237,932 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $92,618 | $180,582 |
Accounts receivable: | ' | ' |
Oil and gas sales | 72,292 | 57,485 |
Joint interest and other | 21,945 | 12,915 |
Prepaid expenses and other | 3,924 | 1,638 |
Inventory of oilfield equipment | 9,996 | 10,696 |
Derivative asset | 13,300 | 858 |
Total current assets | 214,075 | 264,174 |
Property and equipment (successful efforts method), at cost: | ' | ' |
Proved properties | 1,753,604 | 1,257,288 |
Less: accumulated depreciation, depletion and amortization | -377,733 | -224,848 |
Total proved properties, net | 1,375,871 | 1,032,440 |
Unproved properties | 213,251 | 45,081 |
Wells in progress | 155,096 | 110,848 |
Natural gas plant, net of accumulated depreciation of $7,819 in 2014 and $5,903 in 2013 | 68,479 | 71,474 |
Other property and equipment, net of accumulated depreciation of $5,168 in 2014 and $2,822 in 2013 | 10,511 | 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 | 1,823,208 | 1,267,609 |
Long-term derivative asset | 5,224 | 293 |
Other noncurrent assets | 23,724 | 13,859 |
Total assets | 2,066,231 | 1,545,935 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses (Note 5) | 172,568 | 121,665 |
Oil and gas revenue distribution payable | 45,951 | 36,241 |
Contractual obligation for land acquisition | 12,000 | 12,000 |
Derivative liability | ' | 5,320 |
Total current liabilities | 230,519 | 175,226 |
Long-term liabilities: | ' | ' |
Contractual obligation for land acquisition | 10,604 | 22,033 |
Ad valorem taxes | 29,208 | 18,867 |
Derivative liability | ' | 1,203 |
Deferred income taxes, net | 192,050 | 152,681 |
Asset retirement obligations | 15,382 | 11,050 |
Total liabilities | 1,285,689 | 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, 41,242,936 and 40,285,919 issued and outstanding in 2014 and 2013, respectively | 41 | 40 |
Additional paid-in capital | 588,794 | 527,752 |
Retained earnings | 191,707 | 128,236 |
Total stockholders' equity | 780,542 | 656,028 |
Total liabilities and stockholders' equity | 2,066,231 | 1,545,935 |
6.75% Senior Notes | ' | ' |
Long-term liabilities: | ' | ' |
Senior Notes | 507,926 | 508,847 |
5.75% Senior Notes | ' | ' |
Long-term liabilities: | ' | ' |
Senior Notes | $300,000 | ' |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | Assets held for sale | Assets held for sale | |||
Natural gas plant, accumulated depreciation (in dollars) | $7,819 | $5,903 | ' | ' | ' |
Other property and equipment, accumulated depreciation (in dollars) | 5,168 | 2,822 | ' | ' | ' |
Oil and gas properties held for sale, accumulated depreciation, depletion, and amortization (note 3) (in dollars) | 377,733 | 224,848 | ' | 0 | 1,463 |
Senior Notes unamortized premium | $7,926 | ' | $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 | 41,242,936 | 40,285,919 | ' | ' | ' |
Common stock, shares outstanding | 41,242,936 | 40,285,919 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Operating net revenues: | ' | ' | ' | ' |
Oil and gas sales | $156,371 | $125,973 | $435,448 | $288,798 |
Operating expenses: | ' | ' | ' | ' |
Lease operating | 18,217 | 12,958 | 53,316 | 36,986 |
Severance and ad valorem taxes | 15,334 | 8,086 | 42,347 | 18,251 |
Exploration | 3,291 | 2,099 | 4,470 | 3,524 |
Depreciation, depletion and amortization | 63,241 | 36,750 | 158,489 | 89,630 |
General and administrative (including $3,162, $2,652, $17,312, and $9,716, respectively, of stock-based compensation) | 14,814 | 13,811 | 63,075 | 40,260 |
Total operating expenses | 114,897 | 73,704 | 321,697 | 188,651 |
Income from operations | 41,474 | 52,269 | 113,751 | 100,147 |
Other income (expense): | ' | ' | ' | ' |
Derivative gain (loss) | 50,846 | -16,890 | 14,761 | -14,443 |
Interest expense | -13,228 | -6,180 | -31,997 | -14,013 |
Other income (loss) | 181 | -53 | 397 | -3 |
Total other income (expense) | 37,799 | -23,123 | -16,839 | -28,459 |
Income from continuing operations before taxes | 79,273 | 29,146 | 96,912 | 71,688 |
Income tax expense | -30,419 | -11,221 | -37,216 | -27,607 |
Income from continuing operations | 48,854 | 17,925 | 59,696 | 44,081 |
Discontinued operations (Note 4) | ' | ' | ' | ' |
Loss from operations associated with oil and gas properties held for sale | ' | -234 | -85 | -535 |
Gain (loss) on sale of oil and gas properties | -117 | ' | 6,213 | ' |
Income tax (expense) benefit | 45 | 90 | -2,353 | 206 |
Gain (loss) from discontinued operations | -72 | -144 | 3,775 | -329 |
Net income | 48,782 | 17,781 | 63,471 | 43,752 |
Comprehensive income | $48,782 | $17,781 | $63,471 | $43,752 |
Basic income per share: | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.18 | $0.44 | $1.47 | $1.09 |
Income from discontinued operations (in dollars per share) | $0 | $0 | $0.09 | $0 |
Net income per common share (in dollars per share) | $1.18 | $0.44 | $1.56 | $1.09 |
Diluted income per share: | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.18 | $0.44 | $1.46 | $1.09 |
Income from discontinued operations (in dollars per share) | $0 | $0 | $0.09 | $0 |
Net income per common share (in dollars per share) | $1.18 | $0.44 | $1.55 | $1.09 |
Basic weighted-average common shares outstanding | 40,556 | 39,356 | 39,958 | 39,315 |
Diluted weighted-average common shares outstanding | 40,708 | 39,375 | 40,105 | 39,349 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
General and administrative, stock compensation | $3,162 | $2,652 | $17,312 | $9,716 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $63,471 | $43,752 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation, depletion and amortization | 158,557 | 89,897 |
Deferred income taxes | 39,369 | 27,402 |
Stock-based compensation | 17,312 | 9,716 |
Amortization of deferred financing costs | 1,953 | 1,120 |
Amortization of premium on Senior Notes | -921 | ' |
Accretion of contractual obligation for land acquisition | 571 | 571 |
Derivative (gain) loss | -14,761 | 14,443 |
Abandoned lease | ' | 1,688 |
Gain on sale of oil and gas properties | -6,213 | ' |
Other | -12 | ' |
Changes in current assets and liabilities: | ' | ' |
Accounts receivable | -23,837 | -32,081 |
Prepaid expenses and other assets | -2,286 | 726 |
Accounts payable and accrued liabilities | 43,133 | 33,961 |
Settlement of asset retirement obligations | -374 | -73 |
Net cash provided by operating activities | 275,962 | 191,122 |
Cash flows from investing activities: | ' | ' |
Acquisition of oil and gas properties | -178,883 | -10,969 |
Proceeds from sale of oil and gas properties | 6,000 | ' |
Payments of contractual obligations | -12,000 | -12,000 |
Exploration and development of oil and gas properties | -448,586 | -306,685 |
Natural gas plant capital expenditures | -281 | -4,459 |
Derivative cash settlements | -9,136 | -9,867 |
(Increase) decrease in restricted cash | -3,062 | 79 |
Additions to property and equipment - non oil and gas | -5,451 | -3,695 |
Net cash used in investing activities | -651,399 | -347,596 |
Payments of contractual obligations for land acquisition | -12,000 | -12,000 |
Cash flows from financing activities: | ' | ' |
Proceeds from credit facility | 230,000 | 72,000 |
Payments to credit facility | -230,000 | -191,500 |
Proceeds from sale of Senior Notes | 300,000 | 300,000 |
Offering costs related to sale of Senior Notes | -6,867 | -7,343 |
Payment of employee tax withholdings in exchange for the return of common stock | -5,319 | -3,503 |
Deferred financing costs | -341 | -79 |
Net cash provided by financing activities | 287,473 | 169,575 |
Net change in cash and cash equivalents | -87,964 | 13,101 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 180,582 | 4,268 |
End of period | 92,618 | 17,369 |
Supplemental cash flow disclosure: | ' | ' |
Cash paid for interest | 18,519 | 2,855 |
Stock issued for the acquisition of oil and gas properties | 49,050 | ' |
Cash paid for income taxes | 200 | 100 |
Changes in working capital related to drilling expenditures, natural gas plant expenditures, and property acquisition | $26,776 | $12,066 |
ORGANIZATION_AND_BUSINESS
ORGANIZATION AND BUSINESS | 9 Months Ended |
Sep. 30, 2014 | |
ORGANIZATION AND BUSINESS | ' |
ORGANIZATION AND BUSINESS | ' |
NOTE 1 - ORGANIZATION AND BUSINESS | |
Bonanza Creek Energy, Inc. (“BCEI” or, together with our consolidated subsidiaries, the “Company”) 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 | 9 Months Ended |
Sep. 30, 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (the “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 September 30, 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 condensed consolidated balance sheets (“balance sheets”) include the accounts of BCEI 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 this report. These unaudited condensed consolidated financial statements should be read in conjunction with the 2013 Form 10-K. | |
Recently Issued Accounting Standards | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Update No. 2014-08 - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The update is aimed at reducing the frequency of disposals reported as discontinued operations by focusing on strategic shifts that have or will have a major effect on an entity’s operations and financial results. This authoritative accounting guidance is effective for interim and annual periods beginning after December 15, 2014 and is to be applied prospectively. The Company is currently evaluating the provisions of this guidance and assessing its impact, but does not currently believe it will have a material effect on the Company’s financial statements or disclosures. | |
In May 2014, the FASB issued Update No. 2014-09 - Revenue From Contracts With Customers. The update prescribes two acceptable methods and is effective for the annual period beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the provisions of this guidance and assessing its impact on the Company’s financial statements and disclosures. | |
In June 2014, the FASB issued Update No. 2014-12 - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period. The guidance relates to the recognition of share-based compensation when an award provides that a performance target can be achieved after the requisite service period. This authoritative accounting guidance may be applied either prospectively or retrospectively and is effective for annual periods and interim periods beginning after December 15, 2015. The Company is currently evaluating the provisions of this guidance and assessing its impact on the Company’s financial statements and disclosures. | |
In August 2014, the FASB issued Update No. 2014-15 - Presentation of Financial Statements – Going Concern that requires management to evaluate whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the entity’s financial statements are issued, or within one year after the date that the entity’s financial statements are available to be issued, and to provide disclosures when certain criteria are met. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the provisions of this guidance and assessing its impact on the Company’s financial statements and disclosures. | |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended | |||
Sep. 30, 2014 | ||||
ACQUISITIONS | ' | |||
ACQUISITIONS | ' | |||
NOTE 3 - ACQUISITIONS | ||||
The Company acquired approximately 86,000 gross (34,000 net) acres of oil and gas properties, leasehold mineral interests and related assets located in the Wattenberg Field (“Wattenberg Field Acquisition”) from a private operator. The Company paid approximately $174.6 million (inclusive of customary acquisition costs) in cash and issued 853,492 shares of the Company’s common stock valued at $57.47 per share, the market price at the time of closing, for the acquired assets. The Wattenberg Field Acquisition had an effective date of June 1, 2014 and closed on July 8, 2014. The results of operations for the Wattenberg Field Acquisition have been included in the Company’s condensed consolidated financial statements from the date of closing. Pro forma information is not presented as the pro forma results would not have been materially different from the information presented in the accompanying condensed consolidated statements of operations and comprehensive income (the “accompanying statements of operations”). | ||||
The Wattenberg Field Acquisition was recorded using the purchase method of accounting. The initial purchase price will be adjusted for post-closing settlements. The following table summarizes the allocation of consideration paid (inclusive of customary acquisition costs) to the tangible assets acquired and liabilities assumed in the Wattenberg Field Acquisition. | ||||
Asset Valuation Amount | ||||
(in thousands) | ||||
Purchase price | $ | 223,650 | ||
Allocation of purchase price: | ||||
Proved properties | $ | 25,014 | ||
Unproved properties | 198,729 | |||
Asset retirement obligation | -93 | |||
Total | $ | 223,650 | ||
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
DISCONTINUED OPERATIONS | ' | |||||||||||||
DISCONTINUED OPERATIONS | ' | |||||||||||||
NOTE 4 - DISCONTINUED OPERATIONS | ||||||||||||||
During June 2012, the Company began marketing, with 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 in this region 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 $6.2 million. The carrying amounts of the remaining properties included within assets held for sale classified as discontinued operations are presented below. | ||||||||||||||
As of September 30, | As of December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
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 | ||||||||||||
Property and equipment, net | $ | — | $ | 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 September 30, | Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Net revenues: | ||||||||||||||
Oil and gas sales | $ | — | $ | 403 | $ | 361 | $ | 1,278 | ||||||
Operating expenses: | ||||||||||||||
Lease operating | — | 574 | 366 | 1,479 | ||||||||||
Severance and ad valorem taxes | — | — | 12 | 1 | ||||||||||
Exploration | — | 1 | — | 66 | ||||||||||
Depreciation, depletion and amortization | — | 62 | 68 | 267 | ||||||||||
Total operating expenses | 637 | 446 | 1,813 | |||||||||||
Loss from operations associated with oil and gas properties held for sale | $ | — | $ | -234 | $ | -85 | $ | -535 | ||||||
ACCOUNTS_PAYABLE_AND_ACCRUED_E
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 9 Months Ended | ||||||
Sep. 30, 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 September 30, | As of December 31, | ||||||
2014 | 2013 | ||||||
(in thousands) | |||||||
Drilling and completion costs | $ | 107,747 | $ | 80,971 | |||
Accounts payable trade | 7,269 | 3,288 | |||||
Accrued general and administrative cost | 12,875 | 12,720 | |||||
Lease operating expenses | 6,339 | 5,440 | |||||
Accrued reclamation cost | 162 | 168 | |||||
Accrued interest | 18,940 | 7,065 | |||||
Accrued oil and gas derivatives | — | 446 | |||||
Production and ad valorem taxes and other | 19,236 | 11,567 | |||||
Total accounts payable and accrued expenses | $ | 172,568 | $ | 121,665 | |||
REVOLVING_CREDIT_FACILITY
REVOLVING CREDIT FACILITY | 9 Months Ended |
Sep. 30, 2014 | |
REVOLVING CREDIT FACILITY | ' |
REVOLVING CREDIT FACILITY | ' |
NOTE 6 - LONG-TERM DEBT | |
Credit Facility | |
The Company’s senior secured revolving Credit Agreement (the “Revolver” or “credit facility”), dated March 29, 2011, as amended, was further amended on September 30, 2014, to increase the borrowing base from $450 million (decreased from $525 million following the July 2014 issuance of the Company’s 5.75% Senior Notes) to $600 million. The credit facility has an aggregate potential borrowing amount of $1 billion. The Company elected to limit bank commitments to $500 million while reserving the option to access, at the Company’s request, the full $600 million borrowing base prior to the next semi-annual redetermination on May 15, 2015. The Revolver is collateralized by substantially all of the Company’s assets and matures on September 15, 2018. As of September 30, 2014 and December 31, 2013, the Company had no outstanding balance under the Revolver with an available borrowing capacity of $576 million and $414 million, respectively, after the reduction of the outstanding letter of credit of $24 million and $36 million, respectively. | |
The Revolver restricts, among other items, the payment of dividends, certain additional indebtedness, sales 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 September 30, 2014 and through the filing date of this report. | |
5.75% Senior Notes | |
On July 15, 2014, the Company issued $300 million aggregate principal amount of 5.75% Senior Notes (the “5.75% Senior Notes”) that mature on February 1, 2023. Interest on the 5.75% Senior Notes began accruing on July 15, 2014, and interest is payable on February 1 and August 1 of each year, beginning on February 1, 2015. The 5.75% 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 Revolver. The net proceeds from the sale of the 5.75% Senior Notes were $293.4 million after deductions of $6.6 million of expenses and underwriting discounts and commissions. The net proceeds were used to pay off the Company’s outstanding credit facility balance and the remainder will be used for general corporate purposes, which may include funding the drilling and development program and other capital expenditures. | |
At any time prior to August 1, 2017, subject to certain limitations, the Company may redeem up to 35% of the aggregate principal amount of the 5.75% Senior Notes at a redemption price of 105.75% of the principal amount, plus accrued and unpaid interest, with an amount of cash not greater than the net cash proceeds of an equity offering. The Company may redeem all or a part of the 5.75% Senior Notes at any time prior to August 1, 2018 subject to a “make-whole” premium and accrued and unpaid interest. On or after August 1, 2018, the Company may redeem all or a part of the 5.75% Senior Notes at the redemption price of 102.875% for 2018, 101.438% for 2019, and 100.0% for 2020 and thereafter, during the twelve month period beginning on August 1 of each applicable year, in each case, plus accrued and unpaid interest. | |
As of September 30, 2014, and through the filing date of this report, all of the existing subsidiaries of the Company are guarantors of the 5.75% Senior Notes, and all such subsidiaries are 100% 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, 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 most likely anticipated 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 | |
On October 1, 2014, the Company entered into a purchase and transportation agreement to deliver a fixed determinable quantity of crude oil currently anticipated to take effect during the third quarter of 2016. The minimum quantity commitment of crude oil is 15,000 barrels per day over an initial seven year term which equates to an aggregate financial commitment of approximately $322 million over the initial term. While the volume commitment may be met with Company volumes or third party volumes delegated by the Company, the Company will be required to make periodic deficiency payments for any shortfalls in delivering the minimum volume commitments. | |
On October 8, 2014, the Company entered into a purchase and transportation agreement to deliver a fixed determinable quantity of crude oil currently anticipated to take effect during the first quarter of 2015. The minimum quantity commitment of crude oil is 12,580 barrels per day over an initial five year term which equates to an aggregate financial commitment of approximately $218 million over the initial term. While the volume commitment may be met with Company volumes or third party volumes delegated by the Company, the Company will be required to make periodic deficiency payments for any shortfalls in delivering the minimum volume commitments. | |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | ||||||
Sep. 30, 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, each of which represents one share of the Company’s common stock typically vesting in one-third increments over approximately 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. | |||||||
During the nine months ended September 30, 2014, the Company granted 228,818 shares of restricted stock under the Company’s Long Term Incentive Program (“LTIP”) to certain employees. The fair value of the issuance was $11.6 million. Total expense recorded for restricted stock for the three month periods ended September 30, 2014 and 2013, was $2.6 million and $2.5 million, respectively, and $15.8 million and $9.2 million for the nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014, unrecognized compensation cost was $1 million and will be amortized through 2017. | |||||||
During the nine months ended September 30, 2014, the Company issued 9,416 shares of restricted common stock under the LTIP to its non-employee directors. Total expense recorded for non-employee directors for the three month periods ended September 30, 2014 and 2013, was $140,000 and $86,000, respectively and $545,000 and $258,000 for the nine months ended September 30, 2014 and 2013, respectively. These awards vest approximately one year after issuance. | |||||||
A summary of the status and activity of non-vested restricted stock for the nine months ended September 30, 2014 is presented below: | |||||||
Weighted- | |||||||
Average | |||||||
Restricted | Grant-Date | ||||||
Stock | Fair Value | ||||||
Non-vested at beginning of year | 836,002 | $ | 25.11 | ||||
Granted | 238,234 | $ | 48.81 | ||||
Vested | -455,878 | $ | 25.84 | ||||
Forfeited | -25,229 | $ | 29.11 | ||||
Non-vested at end of quarter | 593,129 | $ | 34.81 | ||||
Performance Stock Units under the Long Term Incentive Plan | |||||||
The Company grants performance stock units (“PSUs”) under the LTIP 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. PSUs granted prior to 2014 are determined based on the Company’s performance over a three-year measurement period and vest in their entirety at the end of the measurement period. Satisfaction of the performance conditions for the PSUs granted during 2014 are determined at the end of each annual measurement period over the course of the three-year performance cycle in an amount 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 of PSUs may be earned during the performance cycle). For all grants, the PSUs will be settled in shares following the end of the three-year performance cycle. Any PSUs that have not vested at the end of the applicable measurement period are forfeited. | |||||||
During the nine months ended September 30, 2014, the Company granted 63,766 PSUs under the LTIP to certain officers. The fair value of the issuance was $2.7 million. Total expense recorded for PSUs for the three month periods ended September 30, 2014 and 2013 was $392,000 and $102,000, respectively and $1.0 million and $209,000 for the nine month periods ended September 30, 2014 and 2013, respectively. As of September 30, 2014, there was $3.0 million of total unrecognized compensation expense related to unvested PSUs to be amortized through 2016. | |||||||
A summary of the status and activity of PSUs for the nine months ended September 30, 2014 is presented below: | |||||||
Weighted-Average | |||||||
Grant-Date | |||||||
PSU | Fair Value | ||||||
Non-vested at beginning of year (1) | 40,191 | $ | 32.05 | ||||
Granted(1) | 63,766 | $ | 42.50 | ||||
Vested(1) | — | $ | — | ||||
Forfeited(1) | — | $ | — | ||||
Non-vested at end of quarter(1) | 103,957 | $ | 38.46 | ||||
-1 | The number of awards assumes that the associated performance condition is met at the target amount. The final number of shares of common stock issued may vary depending on the performance multiplier, which ranges from zero to two, depending on the level of satisfaction of the performance condition. | ||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | ||||||||||
Sep. 30, 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 September 30, 2014 and December 31, 2013 and their classification within the fair value hierarchy: | |||||||||||
As of September 30, 2014 | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
(in thousands) | |||||||||||
Derivative assets | $ | — | $ | 18,524 | $ | — | |||||
Derivative liabilities | $ | — | $ | — | $ | — | |||||
As of December 31, 2013 | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
(in thousands) | |||||||||||
Derivative assets | $ | — | $ | 1,151 | $ | — | |||||
Derivative liabilities | $ | — | $ | 6,523 | $ | — | |||||
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 and collars 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. Presently, all of our derivative arrangements are concentrated with five counterparties all of which are lenders under the Company’s Revolver. | |||||||||||
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. 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 September 30, 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 September 30, 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 September 30, 2014 or December 31, 2013. | |||||||||||
Long-term Debt | |||||||||||
As of September 30, 2014, the Company had $500 million of outstanding 6.75% Senior Notes (the “6.75% Senior Notes”) and $300 million of outstanding 5.75% Senior Notes. The 6.75% Senior Notes are recorded at cost net of the unamortized premium on the accompanying balance sheets at $507.9 million and $508.8 million as of September 30, 2014 and December 31, 2013, respectively. The fair value of the 6.75% Senior Notes as of September 30, 2014 and December 31, 2013 was $515.0 million and $527.5 million, respectively. The fair value of the 5.75% Senior Notes as of September 30, 2014 was $294.0 million. The Senior Notes are measured using Level 1 inputs based on a secondary market trading price. The Company’s Revolver, when drawn upon, approximates fair value as the applicable interest rates are floating. | |||||||||||
DERIVATIVES
DERIVATIVES | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 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 September 30, 2014, and as of the filing date of this report, the Company had the following derivative commodity contracts in place: | ||||||||||||||||||||||||
Total Volumes | Average | Average | Average | Fair Market | ||||||||||||||||||||
Settlement | Derivative | (Bbls/MMBtu | Average Fixed | Short Floor | Floor | Ceiling | Value of Asset | |||||||||||||||||
Period | Instrument | per day) | Price | Price | Price | Price | (Liability) | |||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Oil | ||||||||||||||||||||||||
4Q 2014 | Swap | 6,370 | $ | 95.62 | 3,166 | |||||||||||||||||||
1Q 2015 | Swap | 6,000 | $ | 95.39 | 3,481 | |||||||||||||||||||
2Q 2015 | Swap | 5,000 | $ | 94.21 | 2,940 | |||||||||||||||||||
3Q 2015 | Swap | 2,000 | $ | 93.43 | 1,131 | |||||||||||||||||||
4Q 2015 | Swap | 2,000 | $ | 93.43 | 1,177 | |||||||||||||||||||
4Q 2014 | Collar | 4,326 | $ | 86.16 | $ | 96.57 | 280 | |||||||||||||||||
4Q 2014 | 3-Way Collar | 2,000 | $ | 65.00 | $ | 87.68 | $ | 99.75 | 249 | |||||||||||||||
1Q 2015 | 3-Way Collar | 6,500 | $ | 68.08 | $ | 84.32 | $ | 95.90 | 302 | |||||||||||||||
2Q 2015 | 3-Way Collar | 5,500 | $ | 67.73 | $ | 84.09 | $ | 95.16 | 321 | |||||||||||||||
3Q 2015 | 3-Way Collar | 6,500 | $ | 68.46 | $ | 84.62 | $ | 95.49 | 655 | |||||||||||||||
4Q 2015 | 3-Way Collar | 6,500 | $ | 68.46 | $ | 84.62 | $ | 95.49 | 660 | |||||||||||||||
1Q 2016 | 3-Way Collar | 5,500 | $ | 70.00 | $ | 85.00 | $ | 96.83 | 853 | |||||||||||||||
2Q 2016 | 3-Way Collar | 5,500 | $ | 70.00 | $ | 85.00 | $ | 96.83 | 856 | |||||||||||||||
3Q 2016 | 3-Way Collar | 5,500 | $ | 70.00 | $ | 85.00 | $ | 96.83 | 875 | |||||||||||||||
4Q 2016 | 3-Way Collar | 5,500 | $ | 70.00 | $ | 85.00 | $ | 96.83 | 789 | |||||||||||||||
$ | 17,735 | |||||||||||||||||||||||
Gas | ||||||||||||||||||||||||
4Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | $ | 496 | ||||||||||||||
1Q 2015 | 3-Way Collar | 15,000 | $ | 3.50 | $ | 4.00 | $ | 4.75 | $ | -48 | ||||||||||||||
2Q 2015 | 3-Way Collar | 15,000 | $ | 3.50 | $ | 4.00 | $ | 4.75 | $ | 190 | ||||||||||||||
3Q 2015 | 3-Way Collar | 15,000 | $ | 3.50 | $ | 4.00 | $ | 4.75 | $ | 137 | ||||||||||||||
4Q 2015 | 3-Way Collar | 15,000 | $ | 3.50 | $ | 4.00 | $ | 4.75 | $ | 14 | ||||||||||||||
$ | 789 | |||||||||||||||||||||||
Total | $ | 18,524 | ||||||||||||||||||||||
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 September 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||
Balance Sheet Location | Fair Value | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivative Assets: | ||||||||||||||||||||||||
Commodity contracts | Current assets | $ | 13,300 | |||||||||||||||||||||
Commodity contracts | Noncurrent assets | 5,224 | ||||||||||||||||||||||
Derivative Liabilities: | ||||||||||||||||||||||||
Commodity contracts | Current liabilities | — | ||||||||||||||||||||||
Commodity contracts | Long-term liabilities | — | ||||||||||||||||||||||
Total net derivative asset | $ | 18,524 | ||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Derivative cash settlement gain (loss): | ||||||||||||||||||||||||
Oil contracts | $ | -1,577 | $ | -6,962 | $ | -9,171 | $ | -10,206 | ||||||||||||||||
Gas contracts | 583 | 88 | 35 | 339 | ||||||||||||||||||||
Total derivative cash settlement (loss)(1) | $ | -994 | $ | -6,874 | $ | -9,136 | $ | -9,867 | ||||||||||||||||
Change in fair value gain (loss) | $ | 51,840 | $ | -10,016 | $ | 23,897 | $ | -4,576 | ||||||||||||||||
Total derivative gain (loss)(2) | $ | 50,846 | $ | -16,890 | $ | 14,761 | $ | -14,443 | ||||||||||||||||
-1 | Derivative cash settlement gain (loss) for the nine months ended September 30, 2014 and 2013 is reported in the derivative cash settlements line item on the accompanying condensed consolidated statements of cash flows (the “statements of cash flows”) within the net cash used in investing activities. | |||||||||||||||||||||||
-2 | Total derivative gain (loss) for the nine months ended September 30, 2014 and 2013 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 | 9 Months Ended | |||||||||||||
Sep. 30, 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 was 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 Company issues PSUs, which represent the right to receive, upon settlement of the PSUs, a number of shares of the Company’s common stock that range from 0% to 200% of the number of PSUs granted on the award date. The number of potentially dilutive shares related to PSUs is based on the number of shares, if any, that would be issuable at the end of the respective reporting period, assuming that date was the end of the contingency period applicable to such PSUs. Please refer to Note 8 - Stock-Based Compensation, for additional discussion. | ||||||||||||||
The following table sets forth the calculation of earnings per basic and diluted shares from continuing and discontinued operations for the three and nine month periods ended September 30, 2014 and 2013: | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands, except per share amounts) | ||||||||||||||
Income from continuing operations: | ||||||||||||||
Income from continuing operations | $ | 48,854 | $ | 17,925 | $ | 59,696 | $ | 44,081 | ||||||
Less: undistributed earnings to unvested restricted stock | 914 | 446 | 1,124 | 1,055 | ||||||||||
Undistributed earnings to common shareholders | 47,940 | 17,479 | 58,572 | 43,026 | ||||||||||
Basic income per common share from continuing operations | $ | 1.18 | $ | 0.44 | $ | 1.47 | $ | 1.09 | ||||||
Diluted income per common share from continuing operations | $ | 1.18 | $ | 0.44 | $ | 1.46 | $ | 1.09 | ||||||
Income (loss) from discontinued operations: | ||||||||||||||
Income (loss) from discontinued operations | $ | -72 | $ | -144 | $ | 3,775 | $ | -329 | ||||||
Less: undistributed earnings to unvested restricted stock | -1 | -4 | 71 | -8 | ||||||||||
Undistributed earnings (loss) to common shareholders | -71 | -140 | 3,704 | -321 | ||||||||||
Basic income per common share from discontinued operations | $ | 0.00 | $ | 0.00 | $ | 0.09 | $ | 0.00 | ||||||
Diluted income per common share from discontinued operations | $ | 0.00 | $ | 0.00 | $ | 0.09 | $ | 0.00 | ||||||
Net income: | ||||||||||||||
Net income | $ | 48,782 | $ | 17,781 | $ | 63,471 | $ | 43,752 | ||||||
Less: undistributed earnings to unvested restricted stock | 913 | 442 | 1,195 | 1,047 | ||||||||||
Undistributed earnings to common shareholders | 47,869 | 17,339 | 62,276 | 42,705 | ||||||||||
Basic net income per common share | $ | 1.18 | $ | 0.44 | $ | 1.56 | $ | 1.09 | ||||||
Diluted net income per common share | $ | 1.18 | $ | 0.44 | $ | 1.55 | $ | 1.09 | ||||||
Weighted-average shares outstanding - basic | 40,556 | 39,356 | 39,958 | 39,315 | ||||||||||
Add: dilutive effect of contingent PSUs | 152 | 19 | 147 | 34 | ||||||||||
Weighted-average shares outstanding - diluted | 40,708 | 39,375 | 40,105 | 39,349 | ||||||||||
The Company had no anti-dilutive shares for the three and nine month periods ended September 30, 2014 and 2013. | ||||||||||||||
INCOME_TAXES
INCOME TAXES: | 9 Months Ended |
Sep. 30, 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 and nine month periods ended September 30, 2014 and 2013 the effective tax rate was 38.4 % 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) | 9 Months Ended |
Sep. 30, 2014 | |
BASIS OF PRESENTATION | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The condensed consolidated balance sheets (“balance sheets”) include the accounts of BCEI 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 this report. These unaudited condensed consolidated financial statements should be read in conjunction with the 2013 Form 10-K. | |
Recently Issued Accounting Standards | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Update No. 2014-08 - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The update is aimed at reducing the frequency of disposals reported as discontinued operations by focusing on strategic shifts that have or will have a major effect on an entity’s operations and financial results. This authoritative accounting guidance is effective for interim and annual periods beginning after December 15, 2014 and is to be applied prospectively. The Company is currently evaluating the provisions of this guidance and assessing its impact, but does not currently believe it will have a material effect on the Company’s financial statements or disclosures. | |
In May 2014, the FASB issued Update No. 2014-09 - Revenue From Contracts With Customers. The update prescribes two acceptable methods and is effective for the annual period beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the provisions of this guidance and assessing its impact on the Company’s financial statements and disclosures. | |
In June 2014, the FASB issued Update No. 2014-12 - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period. The guidance relates to the recognition of share-based compensation when an award provides that a performance target can be achieved after the requisite service period. This authoritative accounting guidance may be applied either prospectively or retrospectively and is effective for annual periods and interim periods beginning after December 15, 2015. The Company is currently evaluating the provisions of this guidance and assessing its impact on the Company’s financial statements and disclosures. | |
In August 2014, the FASB issued Update No. 2014-15 - Presentation of Financial Statements – Going Concern that requires management to evaluate whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the entity’s financial statements are issued, or within one year after the date that the entity’s financial statements are available to be issued, and to provide disclosures when certain criteria are met. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the provisions of this guidance and assessing its impact on the Company’s financial statements and disclosures. | |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
ACQUISITIONS | ' | |||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||
Asset Valuation Amount | ||||
(in thousands) | ||||
Purchase price | $ | 223,650 | ||
Allocation of purchase price: | ||||
Proved properties | $ | 25,014 | ||
Unproved properties | 198,729 | |||
Asset retirement obligation | -93 | |||
Total | $ | 223,650 | ||
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
DISCONTINUED OPERATIONS | ' | |||||||||||||
Schedule of the carrying amounts of the remaining properties included within assets held for sale classified as discontinued operations | ' | |||||||||||||
As of September 30, | As of December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
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 | ||||||||||||
Property and equipment, net | $ | — | $ | 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 September 30, | Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Net revenues: | ||||||||||||||
Oil and gas sales | $ | — | $ | 403 | $ | 361 | $ | 1,278 | ||||||
Operating expenses: | ||||||||||||||
Lease operating | — | 574 | 366 | 1,479 | ||||||||||
Severance and ad valorem taxes | — | — | 12 | 1 | ||||||||||
Exploration | — | 1 | — | 66 | ||||||||||
Depreciation, depletion and amortization | — | 62 | 68 | 267 | ||||||||||
Total operating expenses | 637 | 446 | 1,813 | |||||||||||
Loss from operations associated with oil and gas properties held for sale | $ | — | $ | -234 | $ | -85 | $ | -535 | ||||||
ACCOUNTS_PAYABLE_AND_ACCRUED_E1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ' | ||||||
Schedule of accounts payable and accrued expenses | ' | ||||||
As of September 30, | As of December 31, | ||||||
2014 | 2013 | ||||||
(in thousands) | |||||||
Drilling and completion costs | $ | 107,747 | $ | 80,971 | |||
Accounts payable trade | 7,269 | 3,288 | |||||
Accrued general and administrative cost | 12,875 | 12,720 | |||||
Lease operating expenses | 6,339 | 5,440 | |||||
Accrued reclamation cost | 162 | 168 | |||||
Accrued interest | 18,940 | 7,065 | |||||
Accrued oil and gas derivatives | — | 446 | |||||
Production and ad valorem taxes and other | 19,236 | 11,567 | |||||
Total accounts payable and accrued expenses | $ | 172,568 | $ | 121,665 | |||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
STOCK-BASED COMPENSATION | ' | ||||||
Summary of the status and activity of non-vested restricted stock | ' | ||||||
Weighted- | |||||||
Average | |||||||
Restricted | Grant-Date | ||||||
Stock | Fair Value | ||||||
Non-vested at beginning of year | 836,002 | $ | 25.11 | ||||
Granted | 238,234 | $ | 48.81 | ||||
Vested | -455,878 | $ | 25.84 | ||||
Forfeited | -25,229 | $ | 29.11 | ||||
Non-vested at end of quarter | 593,129 | $ | 34.81 | ||||
Summary of the status and activity of PSUs | ' | ||||||
Weighted-Average | |||||||
Grant-Date | |||||||
PSU | Fair Value | ||||||
Non-vested at beginning of year (1) | 40,191 | $ | 32.05 | ||||
Granted(1) | 63,766 | $ | 42.50 | ||||
Vested(1) | — | $ | — | ||||
Forfeited(1) | — | $ | — | ||||
Non-vested at end of quarter(1) | 103,957 | $ | 38.46 | ||||
The number of awards assumes that the associated performance condition is met at the target amount. The final number of shares of common stock issued may vary depending on the performance multiplier, which ranges from zero to two, depending on the level of satisfaction of the performance condition. | |||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||
Schedule of financial assets and liabilities at fair value on recurring basis | ' | ||||||||||
As of September 30, 2014 | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
(in thousands) | |||||||||||
Derivative assets | $ | — | $ | 18,524 | $ | — | |||||
Derivative liabilities | $ | — | $ | — | $ | — | |||||
As of December 31, 2013 | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
(in thousands) | |||||||||||
Derivative assets | $ | — | $ | 1,151 | $ | — | |||||
Derivative liabilities | $ | — | $ | 6,523 | $ | — | |||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
DERIVATIVES | ' | |||||||||||||||||||||||
Summary of derivative commodity contracts in place | ' | |||||||||||||||||||||||
As of September 30, 2014, and as of the filing date of this report, the Company had the following derivative commodity contracts in place: | ||||||||||||||||||||||||
Total Volumes | Average | Average | Average | Fair Market | ||||||||||||||||||||
Settlement | Derivative | (Bbls/MMBtu | Average Fixed | Short Floor | Floor | Ceiling | Value of Asset | |||||||||||||||||
Period | Instrument | per day) | Price | Price | Price | Price | (Liability) | |||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Oil | ||||||||||||||||||||||||
4Q 2014 | Swap | 6,370 | $ | 95.62 | 3,166 | |||||||||||||||||||
1Q 2015 | Swap | 6,000 | $ | 95.39 | 3,481 | |||||||||||||||||||
2Q 2015 | Swap | 5,000 | $ | 94.21 | 2,940 | |||||||||||||||||||
3Q 2015 | Swap | 2,000 | $ | 93.43 | 1,131 | |||||||||||||||||||
4Q 2015 | Swap | 2,000 | $ | 93.43 | 1,177 | |||||||||||||||||||
4Q 2014 | Collar | 4,326 | $ | 86.16 | $ | 96.57 | 280 | |||||||||||||||||
4Q 2014 | 3-Way Collar | 2,000 | $ | 65.00 | $ | 87.68 | $ | 99.75 | 249 | |||||||||||||||
1Q 2015 | 3-Way Collar | 6,500 | $ | 68.08 | $ | 84.32 | $ | 95.90 | 302 | |||||||||||||||
2Q 2015 | 3-Way Collar | 5,500 | $ | 67.73 | $ | 84.09 | $ | 95.16 | 321 | |||||||||||||||
3Q 2015 | 3-Way Collar | 6,500 | $ | 68.46 | $ | 84.62 | $ | 95.49 | 655 | |||||||||||||||
4Q 2015 | 3-Way Collar | 6,500 | $ | 68.46 | $ | 84.62 | $ | 95.49 | 660 | |||||||||||||||
1Q 2016 | 3-Way Collar | 5,500 | $ | 70.00 | $ | 85.00 | $ | 96.83 | 853 | |||||||||||||||
2Q 2016 | 3-Way Collar | 5,500 | $ | 70.00 | $ | 85.00 | $ | 96.83 | 856 | |||||||||||||||
3Q 2016 | 3-Way Collar | 5,500 | $ | 70.00 | $ | 85.00 | $ | 96.83 | 875 | |||||||||||||||
4Q 2016 | 3-Way Collar | 5,500 | $ | 70.00 | $ | 85.00 | $ | 96.83 | 789 | |||||||||||||||
$ | 17,735 | |||||||||||||||||||||||
Gas | ||||||||||||||||||||||||
4Q 2014 | 3-Way Collar | 30,000 | $ | 3.63 | $ | 4.21 | $ | 4.81 | $ | 496 | ||||||||||||||
1Q 2015 | 3-Way Collar | 15,000 | $ | 3.50 | $ | 4.00 | $ | 4.75 | $ | -48 | ||||||||||||||
2Q 2015 | 3-Way Collar | 15,000 | $ | 3.50 | $ | 4.00 | $ | 4.75 | $ | 190 | ||||||||||||||
3Q 2015 | 3-Way Collar | 15,000 | $ | 3.50 | $ | 4.00 | $ | 4.75 | $ | 137 | ||||||||||||||
4Q 2015 | 3-Way Collar | 15,000 | $ | 3.50 | $ | 4.00 | $ | 4.75 | $ | 14 | ||||||||||||||
$ | 789 | |||||||||||||||||||||||
Total | $ | 18,524 | ||||||||||||||||||||||
Summary of all the Company's derivative positions reported on the accompanying balance sheets | ' | |||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||
Balance Sheet Location | Fair Value | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivative Assets: | ||||||||||||||||||||||||
Commodity contracts | Current assets | $ | 13,300 | |||||||||||||||||||||
Commodity contracts | Noncurrent assets | 5,224 | ||||||||||||||||||||||
Derivative Liabilities: | ||||||||||||||||||||||||
Commodity contracts | Current liabilities | — | ||||||||||||||||||||||
Commodity contracts | Long-term liabilities | — | ||||||||||||||||||||||
Total net derivative asset | $ | 18,524 | ||||||||||||||||||||||
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 | ' | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Derivative cash settlement gain (loss): | ||||||||||||||||||||||||
Oil contracts | $ | -1,577 | $ | -6,962 | $ | -9,171 | $ | -10,206 | ||||||||||||||||
Gas contracts | 583 | 88 | 35 | 339 | ||||||||||||||||||||
Total derivative cash settlement (loss)(1) | $ | -994 | $ | -6,874 | $ | -9,136 | $ | -9,867 | ||||||||||||||||
Change in fair value gain (loss) | $ | 51,840 | $ | -10,016 | $ | 23,897 | $ | -4,576 | ||||||||||||||||
Total derivative gain (loss)(2) | $ | 50,846 | $ | -16,890 | $ | 14,761 | $ | -14,443 | ||||||||||||||||
-1 | Derivative cash settlement gain (loss) for the nine months ended September 30, 2014 and 2013 is reported in the derivative cash settlements line item on the accompanying condensed consolidated statements of cash flows (the “statements of cash flows”) within the net cash used in investing activities. | |||||||||||||||||||||||
Total derivative gain (loss) for the nine months ended September 30, 2014 and 2013 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) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
Schedule of calculation of earnings per basic and diluted shares from continuing and discontinued operations | ' | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands, except per share amounts) | ||||||||||||||
Income from continuing operations: | ||||||||||||||
Income from continuing operations | $ | 48,854 | $ | 17,925 | $ | 59,696 | $ | 44,081 | ||||||
Less: undistributed earnings to unvested restricted stock | 914 | 446 | 1,124 | 1,055 | ||||||||||
Undistributed earnings to common shareholders | 47,940 | 17,479 | 58,572 | 43,026 | ||||||||||
Basic income per common share from continuing operations | $ | 1.18 | $ | 0.44 | $ | 1.47 | $ | 1.09 | ||||||
Diluted income per common share from continuing operations | $ | 1.18 | $ | 0.44 | $ | 1.46 | $ | 1.09 | ||||||
Income (loss) from discontinued operations: | ||||||||||||||
Income (loss) from discontinued operations | $ | -72 | $ | -144 | $ | 3,775 | $ | -329 | ||||||
Less: undistributed earnings to unvested restricted stock | -1 | -4 | 71 | -8 | ||||||||||
Undistributed earnings (loss) to common shareholders | -71 | -140 | 3,704 | -321 | ||||||||||
Basic income per common share from discontinued operations | $ | 0.00 | $ | 0.00 | $ | 0.09 | $ | 0.00 | ||||||
Diluted income per common share from discontinued operations | $ | 0.00 | $ | 0.00 | $ | 0.09 | $ | 0.00 | ||||||
Net income: | ||||||||||||||
Net income | $ | 48,782 | $ | 17,781 | $ | 63,471 | $ | 43,752 | ||||||
Less: undistributed earnings to unvested restricted stock | 913 | 442 | 1,195 | 1,047 | ||||||||||
Undistributed earnings to common shareholders | 47,869 | 17,339 | 62,276 | 42,705 | ||||||||||
Basic net income per common share | $ | 1.18 | $ | 0.44 | $ | 1.56 | $ | 1.09 | ||||||
Diluted net income per common share | $ | 1.18 | $ | 0.44 | $ | 1.55 | $ | 1.09 | ||||||
Weighted-average shares outstanding - basic | 40,556 | 39,356 | 39,958 | 39,315 | ||||||||||
Add: dilutive effect of contingent PSUs | 152 | 19 | 147 | 34 | ||||||||||
Weighted-average shares outstanding - diluted | 40,708 | 39,375 | 40,105 | 39,349 | ||||||||||
ACQUISITIONS_Details
ACQUISITIONS (Details) (Wattenberg Field Acquisition [Member], USD $) | 0 Months Ended |
Jul. 08, 2014 | |
acre | |
Wattenberg Field Acquisition [Member] | ' |
ACQUISITIONS | ' |
Purchase price | $223,650 |
Allocation of purchase price: | ' |
Proved properties | 25,014 |
Unproved properties | 198,729 |
Asset retirement obligation | -93 |
Business Combination, Consideration Transferred, Total | $223,650 |
Gross area of acquired properties (in acres) | 86,000 |
Net area of acquired properties (in acres) | 34,000 |
Issuance of shares of common stock to acquiree | 853,492 |
Per share value of shares of common stock sold to acquiree (in dollars per share) | $57.47 |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2012 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 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 | ' | $6,000 | ' | ' |
Gain (loss) on sale of oil and gas properties | ' | -117 | 6,200 | ' | 6,213 | ' | ' |
Oil and gas properties, successful efforts method: | ' | ' | ' | ' | ' | ' | ' |
Proved properties | ' | 1,753,604 | ' | ' | 1,753,604 | ' | 1,257,288 |
Unproved properties | ' | 213,251 | ' | ' | 213,251 | ' | 45,081 |
Wells in progress | ' | 155,096 | ' | ' | 155,096 | ' | 110,848 |
Less accumulated depreciation, depletion and amortization | ' | -377,733 | ' | ' | -377,733 | ' | -224,848 |
Net revenues: | ' | ' | ' | ' | ' | ' | ' |
Oil and gas sales | ' | 156,371 | ' | 125,973 | 435,448 | 288,798 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Lease operating expense | ' | 18,217 | ' | 12,958 | 53,316 | 36,986 | ' |
Severance and ad valorem taxes | ' | 15,334 | ' | 8,086 | 42,347 | 18,251 | ' |
Exploration | ' | 3,291 | ' | 2,099 | 4,470 | 3,524 | ' |
Depreciation, depletion and amortization | ' | 63,241 | ' | 36,750 | 158,489 | 89,630 | ' |
Total operating expenses | ' | 114,897 | ' | 73,704 | 321,697 | 188,651 | ' |
Loss from operations associated with oil and gas properties held for sale | ' | ' | ' | -234 | -85 | -535 | ' |
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 | ' | ' | ' | 403 | 361 | 1,278 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Lease operating expense | ' | ' | ' | 574 | 366 | 1,479 | ' |
Severance and ad valorem taxes | ' | ' | ' | ' | 12 | 1 | ' |
Exploration | ' | ' | ' | 1 | ' | 66 | ' |
Depreciation, depletion and amortization | ' | ' | ' | 62 | 68 | 267 | ' |
Total operating expenses | ' | ' | ' | 637 | 446 | 1,813 | ' |
Loss from operations associated with oil and gas properties held for sale | ' | ' | ' | ($234) | ($85) | ($535) | ' |
ACCOUNTS_PAYABLE_AND_ACCRUED_E2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts payable and accrued expenses contain the following: | ' | ' |
Drilling and completion costs | $107,747 | $80,971 |
Accounts payable trade | 7,269 | 3,288 |
Accrued general and administrative cost | 12,875 | 12,720 |
Lease operating expense | 6,339 | 5,440 |
Accrued reclamation cost | 162 | 168 |
Accrued interest | 18,940 | 7,065 |
Accrued oil and gas derivatives | ' | 446 |
Production and ad valorem taxes and other | 19,236 | 11,567 |
Total accounts payable and accrued expenses | $172,568 | $121,665 |
REVOLVING_CREDIT_FACILITY_Deta
REVOLVING CREDIT FACILITY (Details) (USD $) | Sep. 30, 2014 | Jul. 31, 2014 | Dec. 31, 2013 | Jul. 15, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Revolver | Revolver | Revolver | 5.75% Senior Notes | 5.75% Senior Notes | 5.75% Senior Notes | 5.75% Senior Notes | 5.75% Senior Notes | 5.75% Senior Notes | 5.75% Senior Notes | 5.75% Senior Notes | |
Prior to August 1, 2017 | 2018 | 2019 | 2020 and thereafter | Maximum | |||||||
Prior to August 1, 2017 | |||||||||||
LONG-TERM DEBT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank commitments | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining borrowing capacity | 576,000,000 | ' | 414,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | 24,000,000 | ' | 36,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base before amendment | 450,000,000 | 525,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of notes issued | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | 5.75% | 5.75% | 5.75% | ' | ' | ' | ' | ' |
Redemption price as a percentage of principal amount of notes plus accrued and unpaid interest | ' | ' | ' | ' | ' | ' | 105.75% | ' | ' | ' | ' |
Net proceeds from sale of notes | ' | ' | ' | 293,400,000 | ' | ' | ' | ' | ' | ' | ' |
Expenses and underwriting discounts and commissions | ' | ' | ' | 6,600,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal amount redeemed | ' | ' | ' | ' | ' | ' | ' | 102.88% | 101.44% | 100.00% | 35.00% |
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_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Details) (USD $) | 0 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Oct. 08, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Sep. 30, 2014 |
bbl | bbl | claim | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ' | ' | ' |
Number of Claims | ' | ' | ' | 0 |
Minimum commitment of crude oil | 12,580 | ' | 15,000 | ' |
Term of commitment period | '5 years | ' | '7 years | ' |
Total commitment | $218 | $322 | ' | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
STOCK-BASED COMPENSATION | ' | ' | ' | ' |
Vesting period | ' | ' | '3 years | ' |
Restricted Stock | ' | ' | ' | ' |
Non-vested at beginning of year (in shares) | ' | ' | 40,191 | ' |
Granted (in shares) | ' | ' | 63,766 | ' |
Non-vested at end of year (in shares) | 103,957 | ' | 103,957 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Non-vested at beginning of year (in dollars per share) | ' | ' | $32.05 | ' |
Granted (in dollars per share) | ' | ' | $42.50 | ' |
Non-vested at end of year (in dollars per share) | $38.46 | ' | $38.46 | ' |
Shares granted | ' | ' | 63,766 | ' |
PSUs | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Vesting percent | ' | ' | 66.67% | ' |
Percentage of awards earned during performance cycle | ' | ' | 200.00% | ' |
PSUs | Minimum | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Ratio at which award holders get common stock of the company | ' | ' | 0 | ' |
PSUs | Maximum | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Ratio at which award holders get common stock of the company | ' | ' | 200 | ' |
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 | ' | ' | 0.333 | ' |
Restricted Stock | ' | ' | ' | ' |
Non-vested at beginning of year (in shares) | ' | ' | 836,002 | ' |
Granted (in shares) | ' | ' | 238,234 | ' |
Vested (in shares) | ' | ' | -455,878 | ' |
Forfeited (in shares) | ' | ' | -25,229 | ' |
Non-vested at end of year (in shares) | 593,129 | ' | 593,129 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Non-vested at beginning of year (in dollars per share) | ' | ' | $25.11 | ' |
Granted (in dollars per share) | ' | ' | $48.81 | ' |
Vested (in dollars per share) | ' | ' | $25.84 | ' |
Forfeited (in dollars per share) | ' | ' | $29.11 | ' |
Non-vested at end of year (in dollars per share) | $34.81 | ' | $34.81 | ' |
Shares granted | ' | ' | 238,234 | ' |
2011 Long Term Incentive Plan | Restricted shares | Employees | ' | ' | ' | ' |
STOCK-BASED COMPENSATION | ' | ' | ' | ' |
Fair value of shares granted | ' | ' | $11,600,000 | ' |
Stock-based compensation expense | 2,600,000 | 2,500,000 | 15,800,000 | 9,200,000 |
Unrecognized compensation cost | 1,000,000 | ' | 1,000,000 | ' |
Restricted Stock | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 228,818 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Shares granted | ' | ' | 228,818 | ' |
2011 Long Term Incentive Plan | Restricted shares | Non-employee directors | ' | ' | ' | ' |
STOCK-BASED COMPENSATION | ' | ' | ' | ' |
Vesting period | ' | ' | '1 year | ' |
Stock-based compensation expense | 140,000 | 86,000 | 545,000 | 258,000 |
Restricted Stock | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 9,416 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Shares granted | ' | ' | 9,416 | ' |
2011 Long Term Incentive Plan | PSUs | Minimum | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Ratio at which award holders get common stock of the company | ' | ' | 0 | ' |
2011 Long Term Incentive Plan | PSUs | Maximum | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Ratio at which award holders get common stock of the company | ' | ' | 2 | ' |
2011 Long Term Incentive Plan | PSUs | Officers | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Measurement period | ' | ' | '3 years | ' |
2011 Long Term Incentive Plan | PSUs | Officers | Minimum | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Ratio at which award holders get common stock of the company | ' | ' | 0 | ' |
2011 Long Term Incentive Plan | PSUs | Officers | Maximum | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Ratio at which award holders get common stock of the company | ' | ' | 2 | ' |
2011 Long Term Incentive Plan | PSUs | Employees | ' | ' | ' | ' |
STOCK-BASED COMPENSATION | ' | ' | ' | ' |
Fair value of shares granted | ' | ' | 2,700,000 | ' |
Stock-based compensation expense | 392,000 | 102,000 | 1 | 209,000 |
Unrecognized compensation cost | $3,000,000 | ' | $3,000,000 | ' |
Restricted Stock | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 63,766 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Shares granted | ' | ' | 63,766 | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Sep. 30, 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 | $18,524 | $1,151 |
Derivative liabilities | ' | $6,523 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 3) (USD $) | Sep. 30, 2014 | Jul. 15, 2014 | Dec. 31, 2013 |
Derivatives measured at fair value | ' | ' | ' |
Proved properties | $1,753,604,000 | ' | 1,257,288,000 |
Unproved properties | 213,251,000 | ' | 45,081,000 |
Asset retirement obligations | 15,382,000 | ' | 11,050,000 |
6.75% Senior Notes | ' | ' | ' |
Derivatives measured at fair value | ' | ' | ' |
Outstanding amount | 500,000,000 | ' | ' |
Long-term debt | 507,900,000 | ' | 508,800,000 |
Interest rate (as a percent) | 6.75% | ' | 6.75% |
5.75% Senior Notes | ' | ' | ' |
Derivatives measured at fair value | ' | ' | ' |
Outstanding amount | 300,000,000 | ' | ' |
Interest rate (as a percent) | 5.75% | 5.75% | 5.75% |
Fair value of Senior Notes | 294,000,000 | ' | ' |
Fair Value | ' | ' | ' |
Derivatives measured at fair value | ' | ' | ' |
Proved properties | 0 | ' | 0 |
Unproved properties | 0 | ' | 0 |
Asset retirement obligations | 0 | ' | 0 |
Fair value of Senior Notes | $515,000,000 | ' | 527,500,000 |
DERIVATIVES_Details
DERIVATIVES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
DERIVATIVES | ' | ' |
Number of derivative instruments qualified for hedging instruments | 0 | ' |
Commodity derivative | ' | ' |
Derivative contract | ' | ' |
Fair Value of Asset (Liability) | $18,524 | ($5,372) |
Commodity derivative | Oil | ' | ' |
Derivative contract | ' | ' |
Fair Value of Asset (Liability) | 17,735 | ' |
Commodity derivative | Gas contracts | ' | ' |
Derivative contract | ' | ' |
Fair Value of Asset (Liability) | 789 | ' |
Commodity derivative | Swap | Oil | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 5,000 | ' |
Average Fixed Price | 94.21 | ' |
Fair Value of Asset (Liability) | 2,940 | ' |
Commodity derivative | Swap | Oil | 4Q 2014 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 6,370 | ' |
Average Fixed Price | 95.62 | ' |
Fair Value of Asset (Liability) | 3,166 | ' |
Commodity derivative | Swap | Oil | 1Q 2015 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 6,000 | ' |
Average Fixed Price | 95.39 | ' |
Fair Value of Asset (Liability) | 3,481 | ' |
Commodity derivative | Swap | Oil | 3Q 2015 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 2,000 | ' |
Average Fixed Price | 93.43 | ' |
Fair Value of Asset (Liability) | 1,131 | ' |
Commodity derivative | Swap | Oil | 4Q 2015 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 2,000 | ' |
Average Fixed Price | 93.43 | ' |
Fair Value of Asset (Liability) | 1,177 | ' |
Commodity derivative | Collar | Oil | 4Q 2014 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 4,326 | ' |
Average Floor Price | 86.16 | ' |
Average Ceiling Price | 96.57 | ' |
Fair Value of Asset (Liability) | 280 | ' |
Commodity derivative | 3-Way Collar | Oil | 4Q 2014 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 2,000 | ' |
Average Short Floor Price | 65 | ' |
Average Floor Price | 87.68 | ' |
Average Ceiling Price | 99.75 | ' |
Fair Value of Asset (Liability) | 249 | ' |
Commodity derivative | 3-Way Collar | Oil | 1Q 2015 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 6,500 | ' |
Average Short Floor Price | 68.08 | ' |
Average Floor Price | 84.32 | ' |
Average Ceiling Price | 95.9 | ' |
Fair Value of Asset (Liability) | 302 | ' |
Commodity derivative | 3-Way Collar | Oil | 2Q 2015 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 5,500 | ' |
Average Short Floor Price | 67.73 | ' |
Average Floor Price | 84.09 | ' |
Average Ceiling Price | 95.16 | ' |
Fair Value of Asset (Liability) | 321 | ' |
Commodity derivative | 3-Way Collar | Oil | 3Q 2015 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 6,500 | ' |
Average Short Floor Price | 68.46 | ' |
Average Floor Price | 84.62 | ' |
Average Ceiling Price | 95.49 | ' |
Fair Value of Asset (Liability) | 655 | ' |
Commodity derivative | 3-Way Collar | Oil | 4Q 2015 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 6,500 | ' |
Average Short Floor Price | 68.46 | ' |
Average Floor Price | 84.62 | ' |
Average Ceiling Price | 95.49 | ' |
Fair Value of Asset (Liability) | 660 | ' |
Commodity derivative | 3-Way Collar | Oil | 1Q 2016 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 5,500 | ' |
Average Short Floor Price | 70 | ' |
Average Floor Price | 85 | ' |
Average Ceiling Price | 96.83 | ' |
Fair Value of Asset (Liability) | 853 | ' |
Commodity derivative | 3-Way Collar | Oil | 2Q 2016 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 5,500 | ' |
Average Short Floor Price | 70 | ' |
Average Floor Price | 85 | ' |
Average Ceiling Price | 96.83 | ' |
Fair Value of Asset (Liability) | 856 | ' |
Commodity derivative | 3-Way Collar | Oil | 3Q 2016 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 5,500 | ' |
Average Short Floor Price | 70 | ' |
Average Floor Price | 85 | ' |
Average Ceiling Price | 96.83 | ' |
Fair Value of Asset (Liability) | 875 | ' |
Commodity derivative | 3-Way Collar | Oil | 4Q 2016 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 5,500 | ' |
Average Short Floor Price | 70 | ' |
Average Floor Price | 85 | ' |
Average Ceiling Price | 96.83 | ' |
Fair Value of Asset (Liability) | 789 | ' |
Commodity derivative | 3-Way Collar | Gas contracts | 4Q 2014 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 30,000 | ' |
Average Short Floor Price | 3.63 | ' |
Average Floor Price | 4.21 | ' |
Average Ceiling Price | 4.81 | ' |
Fair Value of Asset (Liability) | 496 | ' |
Commodity derivative | 3-Way Collar | Gas contracts | 1Q 2015 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 15,000 | ' |
Average Short Floor Price | 3.5 | ' |
Average Floor Price | 4 | ' |
Average Ceiling Price | 4.75 | ' |
Fair Value of Asset (Liability) | -48 | ' |
Commodity derivative | 3-Way Collar | Gas contracts | 2Q 2015 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 15,000 | ' |
Average Short Floor Price | 3.5 | ' |
Average Floor Price | 4 | ' |
Average Ceiling Price | 4.75 | ' |
Fair Value of Asset (Liability) | 190 | ' |
Commodity derivative | 3-Way Collar | Gas contracts | 3Q 2015 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 15,000 | ' |
Average Short Floor Price | 3.5 | ' |
Average Floor Price | 4 | ' |
Average Ceiling Price | 4.75 | ' |
Fair Value of Asset (Liability) | 137 | ' |
Commodity derivative | 3-Way Collar | Gas contracts | 4Q 2015 | ' | ' |
Derivative contract | ' | ' |
Total Volumes (in units per day) | 15,000 | ' |
Average Short Floor Price | 3.5 | ' |
Average Floor Price | 4 | ' |
Average Ceiling Price | 4.75 | ' |
Fair Value of Asset (Liability) | $14 | ' |
DERIVATIVES_Details_2
DERIVATIVES (Details 2) (Commodity derivative, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives measured at fair value | ' | ' |
Total net derivative liability | $18,524 | ($5,372) |
Current assets | ' | ' |
Derivatives measured at fair value | ' | ' |
Derivative Assets | 13,300 | 858 |
Noncurrent assets | ' | ' |
Derivatives measured at fair value | ' | ' |
Derivative Assets | 5,224 | 293 |
Current liabilities | ' | ' |
Derivatives measured at fair value | ' | ' |
Derivative Liabilities | ' | -5,320 |
Long-term liabilities | ' | ' |
Derivatives measured at fair value | ' | ' |
Derivative Liabilities | ' | ($1,203) |
DERIVATIVES_Details_3
DERIVATIVES (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Components of the derivative gain (loss) | ' | ' | ' | ' |
Derivative gain (loss) | $50,846 | ($16,890) | $14,761 | ($14,443) |
Commodity derivative | ' | ' | ' | ' |
Components of the derivative gain (loss) | ' | ' | ' | ' |
Derivative cash settlement gain (loss) | -994 | -6,874 | -9,136 | -9,867 |
Change in fair value gain (loss) | 51,840 | -10,016 | 23,897 | -4,576 |
Derivative gain (loss) | 50,846 | -16,890 | 14,761 | -14,443 |
Commodity derivative | Oil | ' | ' | ' | ' |
Components of the derivative gain (loss) | ' | ' | ' | ' |
Derivative cash settlement gain (loss) | -1,577 | -6,962 | -9,171 | -10,206 |
Commodity derivative | Gas contracts | ' | ' | ' | ' |
Components of the derivative gain (loss) | ' | ' | ' | ' |
Derivative cash settlement gain (loss) | $583 | $88 | $35 | $339 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income from continuing operations: | ' | ' | ' | ' |
Income from continuing operations | $48,854 | $17,925 | $59,696 | $44,081 |
Less: undistributed earnings to unvested restricted stock | 914 | 446 | 1,124 | 1,055 |
Undistributed earnings to common shareholders | 47,940 | 17,479 | 58,572 | 43,026 |
Basic income per common share from continuing operations (in dollars per share) | $1.18 | $0.44 | $1.47 | $1.09 |
Diluted income per common share from continuing operations (in dollars per share) | $1.18 | $0.44 | $1.46 | $1.09 |
Income (loss) from discontinued operations: | ' | ' | ' | ' |
Income (loss) from discontinued operations | -72 | -144 | 3,775 | -329 |
Less: undistributed earnings to unvested restricted stock | -1 | -4 | 71 | -8 |
Undistributed earnings (loss) to common shareholders | -71 | -140 | 3,704 | -321 |
Basic loss per common share from discontinued operations (in dollars per share) | $0 | $0 | $0.09 | $0 |
Diluted loss per common share from discontinued operations (in dollars per share) | $0 | $0 | $0.09 | $0 |
Net income: | ' | ' | ' | ' |
Net Income | 48,782 | 17,781 | 63,471 | 43,752 |
Less: undistributed earnings to unvested restricted stock | 913 | 442 | 1,195 | 1,047 |
Undistributed earnings to common shareholders | $47,869 | $17,339 | $62,276 | $42,705 |
Basic net income per common share (in dollars per share) | $1.18 | $0.44 | $1.56 | $1.09 |
Diluted net income per common share (in dollars per share) | $1.18 | $0.44 | $1.55 | $1.09 |
Weighted-average shares outstanding - basic | 40,556 | 39,356 | 39,958 | 39,315 |
Add: dilutive effect of contingent PSUs | 152 | 19 | 147 | 34 |
Weighted-average shares outstanding - diluted | 40,708 | 39,375 | 40,105 | 39,349 |
Antidilutive shares | 0 | 0 | ' | ' |
PSUs | Minimum | ' | ' | ' | ' |
EARNINGS PER SHARE | ' | ' | ' | ' |
Percentage of awards earned during performance cycle | ' | ' | 0 | ' |
PSUs | Maximum | ' | ' | ' | ' |
EARNINGS PER SHARE | ' | ' | ' | ' |
Percentage of awards earned during performance cycle | ' | ' | 200 | ' |
INCOME_TAXES_Details
INCOME TAXES: (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Reconciliation of effective tax rate to expected federal tax rate | ' | ' |
Effective tax rate (as a percent) | 38.40% | 38.50% |
Valuation allowances | $0 | ' |