Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 4-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | Bonanza Creek Energy, Inc. | |
Entity Central Index Key | 1509589 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 49,701,874 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $70,514 | $2,584 |
Accounts receivable: | ||
Oil and gas sales | 39,273 | 54,574 |
Joint interest and other | 36,205 | 37,202 |
Prepaid expenses and other | 14,395 | 12,522 |
Inventory of oilfield equipment | 18,312 | 15,353 |
Derivative asset | 69,056 | 86,240 |
Total current assets | 247,755 | 208,475 |
Property and equipment (successful efforts method), at cost: | ||
Proved properties | 2,072,397 | 1,924,380 |
Less: accumulated depreciation, depletion and amortization | -649,015 | -592,073 |
Total proved properties, net | 1,423,382 | 1,332,307 |
Unproved properties | 202,409 | 206,721 |
Wells in progress | 111,964 | 139,208 |
Natural gas plant, net of accumulated depreciation of $9,097 in 2015 and $8,457 in 2014 | 67,313 | 67,840 |
Other property and equipment, net of accumulated depreciation of $7,052 in 2015 and $6,087 in 2014 | 10,932 | 10,401 |
Total property and equipment, net | 1,816,000 | 1,756,477 |
Long-term derivative asset | 18,339 | 17,765 |
Other noncurrent assets | 32,656 | 23,372 |
Total assets | 2,114,750 | 2,006,089 |
Current liabilities: | ||
Accounts payable and accrued expenses (Note 4) | 119,004 | 145,788 |
Oil and gas revenue distribution payable | 30,215 | 40,659 |
Contractual obligation for land acquisition | 12,000 | 12,000 |
Total current liabilities | 161,219 | 198,447 |
Long-term liabilities: | ||
Long-term debt (note 5) | 807,313 | 840,619 |
Contractual obligation for land acquisition | 11,535 | 11,186 |
Ad valorem taxes | 33,002 | 28,635 |
Deferred income taxes | 154,129 | 165,667 |
Asset retirement obligations | 21,786 | 21,464 |
Total liabilities | 1,188,984 | 1,266,018 |
Commitments and contingencies (note 6) | ||
Stockholders' equity: | ||
Preferred stock, $.001 par value, 25,000,000 shares authorized, none outstanding | ||
Common stock, $.001 par value, 225,000,000 shares authorized, 49,617,775 and 41,287,270 issued and outstanding in 2015 and 2014, respectively | 50 | 41 |
Additional paid-in capital | 795,618 | 591,511 |
Retained earnings | 130,098 | 148,519 |
Total stockholders' equity | 925,766 | 740,071 |
Total liabilities and stockholders' equity | $2,114,750 | $2,006,089 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Natural gas plant, accumulated depreciation (in dollars) | $9,097 | $8,457 |
Other property and equipment, accumulated depreciation (in dollars) | 7,052 | 6,087 |
Oil and gas properties held for sale, accumulated depreciation, depletion, and amortization (note 3) (in dollars) | $649,015 | $592,073 |
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 | 49,617,775 | 49,617,775 |
Common stock, shares outstanding | 41,287,270 | 41,287,270 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating net revenues: | ||
Oil and gas sales | $73,076 | $127,395 |
Operating expenses: | ||
Lease operating expense | 19,264 | 17,082 |
Severance and ad valorem taxes | 6,496 | 10,749 |
Exploration | 498 | 1,083 |
Depreciation, depletion and amortization | 59,004 | 41,132 |
Abandonment and impairment of unproved properties | 5,469 | |
General and administrative (including $3,427 and $6,797 in 2015 and 2014, respectively, of stock compensation) | 16,872 | 23,714 |
Total operating expenses | 107,603 | 93,760 |
Income (loss) from operations | -34,527 | 33,635 |
Other income (expense): | ||
Derivative gain (loss) | 18,856 | -8,778 |
Interest expense | -14,238 | -9,335 |
Other income (loss) | -49 | 51 |
Total other income (expense) | 4,569 | -18,062 |
Income (loss) from continuing operations before taxes | -29,958 | 15,573 |
Total income tax benefit (expense ) | -11,537 | 5,996 |
Income (loss) from continuing operations | -18,421 | 9,577 |
Discontinued operations (Note 3) | ||
Loss from operations associated with oil and gas properties held for sale | -85 | |
Gain on sale of oil and gas properties | 6,514 | |
Income tax expense | -2,475 | |
Gain from discontinued operations | 3,954 | |
Net income (loss) | -18,421 | 13,531 |
Comprehensive income (loss) | ($18,421) | $13,531 |
Basic net income (loss) per common share: | ||
Income from continuing operations (in dollars per share) | ($0.41) | $0.24 |
Income from discontinued operations (in dollars per share) | $0.10 | |
Net income per common share (in dollars per share) | ($0.41) | $0.34 |
Basic weighted-average common shares outstanding | 44,519,701 | 39,605,083 |
Diluted net income (loss) per common share: | ||
Income from continuing operations (in dollars per share) | ($0.41) | $0.24 |
Income from discontinued operations (in dollars per share) | $0.10 | |
Net income per common share (in dollars per share) | ($0.41) | $0.34 |
Diluted weighted-average common shares outstanding | 44,519,701 | 39,761,738 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
General and administrative, stock compensation | $3,427 | $6,797 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | ($18,421,000) | $13,531,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 59,004,000 | 41,199,000 |
Deferred income taxes | -11,537,000 | 8,471,000 |
Abandonment and impairment of unproved properties | 5,469,000 | |
Stock-based compensation | 3,427,000 | 6,797,000 |
Amortization of deferred financing costs | 523,000 | 255,000 |
Accretion of contractual obligation for land acquisition | 349,000 | 190,000 |
Derivative (gain) loss | -18,856,000 | 8,778,000 |
Gain on sale of oil and gas properties | -6,514,000 | |
Other | -27,000 | -2,000 |
Changes in current assets and liabilities: | ||
Accounts receivable | 16,298,000 | -12,721,000 |
Prepaid expenses and other assets | -1,873,000 | -2,637,000 |
Accounts payable and accrued liabilities | -1,981,000 | 20,337,000 |
Settlement of asset retirement obligations | -285,000 | |
Net cash provided by operating activities | 32,090,000 | 77,684,000 |
Cash flows from investing activities: | ||
Acquisition of oil and gas properties | -11,382,000 | -1,202,000 |
Proceeds from sale of oil and gas properties | 6,000,000 | |
Exploration and development of oil and gas properties | -154,300,000 | -123,835,000 |
Natural gas plant capital expenditures | -112,000 | -194,000 |
Derivative cash settlements | 35,466,000 | -2,227,000 |
Additions to property and equipment - non oil and gas | -1,490,000 | -838,000 |
Net cash used in investing activities | -131,818,000 | -122,296,000 |
Cash flows from financing activities: | ||
Proceeds from credit facility | 44,000,000 | |
Payments to credit facility | -77,000,000 | |
Proceeds from sale of common stock | 209,300,000 | |
Offering costs related to sale of common stock | -6,492,000 | |
Offering costs related to sale of Senior Notes | -19,000 | -140,000 |
Payment of employee tax withholdings in exchange for the return of common stock | -2,127,000 | -4,461,000 |
Deferred financing costs | -4,000 | -26,000 |
Net cash provided by financing activities | 167,658,000 | -4,627,000 |
Net change in cash and cash equivalents | 67,930,000 | -49,239,000 |
Cash and cash equivalents: | ||
Beginning of period | 2,584,000 | 180,582,000 |
End of period | 70,514,000 | 131,343,000 |
Supplemental cash flow disclosure: | ||
Cash paid for interest | 9,894,000 | 464,000 |
Cash paid for income taxes | 820,000 | |
Changes in working capital related to drilling expenditures, natural gas plant expenditures, and property acquisition | ($30,880,000) | $23,238,000 |
ORGANIZATION_AND_BUSINESS
ORGANIZATION AND BUSINESS | 3 Months Ended |
Mar. 31, 2015 | |
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, which the Company has designated the Rocky Mountain region and the Dorcheat Macedonia Field in southern Arkansas, which the Company has designated the Mid-Continent region. | |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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, 2014 (the “2014 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, 2015 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, Bonanza Creek Energy Upstream LLC, Bonanza Creek Energy Midstream, LLC, Holmes Eastern Company, LLC and Rocky Mountain Infrastructure, 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 2014 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 2014 Form 10-K. | |
Recently Issued Accounting Standards | |
In March 2015, the Financial Accounting Standards Board issued Update No. 2015-03 – Interest – Imputation of Interest, Simplifying the Presentation of Debt Issuance Costs. The update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This authoritative accounting guidance is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years on a retrospective basis. 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. | |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
DISCONTINUED OPERATIONS | ||||||
DISCONTINUED OPERATIONS | NOTE 3 - 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 sale of oil and gas properties in the amount of $6.5 million as of March 31, 2014. | ||||||
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, | ||||||
2015 | 2014 | |||||
(in thousands) | ||||||
Net revenues: | ||||||
Oil and gas sales | $ | — | $ | 361 | ||
Operating expenses: | ||||||
Lease operating expense | — | 366 | ||||
Severance and ad valorem taxes | — | 13 | ||||
Depreciation, depletion and amortization | — | 67 | ||||
Total operating expenses | 446 | |||||
Loss from operations associated with oil and gas properties held for sale | $ | — | $ | -85 | ||
ACCOUNTS_PAYABLE_AND_ACCRUED_E
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 4 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||||||
Accounts payable and accrued expenses contain the following: | |||||||
As of March 31, | As of December 31, | ||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Drilling and completion costs | $ | 51,964 | $ | 82,844 | |||
Accounts payable trade | 15,326 | 5,493 | |||||
Accrued general and administrative cost | 6,755 | 13,541 | |||||
Lease operating expense | 4,249 | 3,569 | |||||
Accrued reclamation cost | 162 | 162 | |||||
Accrued interest | 18,311 | 14,839 | |||||
Production and ad valorem taxes and other | 22,237 | 25,340 | |||||
Total accounts payable and accrued expenses | $ | 119,004 | $ | 145,788 | |||
LONGTERM_DEBT
LONG-TERM DEBT | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
LONG-TERM DEBT | |||||||
LONG-TERM DEBT | NOTE 5 - LONG-TERM DEBT | ||||||
Long-term debt consisted of the following as of March 31, 2015 and December 31, 2014: | |||||||
As of March 31, | As of December 31, | ||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Revolving credit facility | $ | — | $ | 33,000 | |||
6.75% Senior Notes due 2021 | 500,000 | 500,000 | |||||
Unamortized premium on 6.75% Senior Notes | 7,313 | 7,619 | |||||
5.75% Senior Notes due 2023 | 300,000 | 300,000 | |||||
Total long-term debt | $ | 807,313 | $ | 840,619 | |||
Credit Facility | |||||||
The Company’s senior secured revolving Credit Agreement (the “revolving credit facility”), dated March 29, 2011, as amended, provides for borrowings up to $1 billion. As of March 31, 2015, the borrowing base under the revolving credit facility was $600 million. The Company elected to limit bank commitments at $500 million while reserving the option to access, at the Company’s request, the full $600 million borrowing base. The borrowing base is redetermined semiannually on May 15 and November 15. The revolving credit facility is collateralized by substantially all of the Company’s assets and matures on September 15, 2018. As of March 31, 2015, the Company had no outstanding balance under the revolving credit facility with an available borrowing capacity of $576 million, if the Company elected to take advantage of the entire borrowing base (without giving effect to any scheduled or interim redetermination), after reduction for the outstanding letter of credit of $24 million. As of December 31, 2014, the Company had $33 million outstanding under the revolving credit facility with an available borrowing capacity of $543 million, if the Company elected to take advantage of the entire borrowing base, after reduction for the outstanding letter of credit of $24 million. | |||||||
The revolving credit facility restricts, among other items, the payment of dividends, certain additional indebtedness, sale of assets, loans and certain investments and mergers. The revolving credit facility also contains certain financial covenants, which require the maintenance of minimum current and debt coverage ratios, as defined by the revolving credit facility. The Company was in compliance with all financial and non-financial covenants as of March 31, 2015, and through the filing date of this report. | |||||||
Senior Notes | |||||||
The $500 million aggregate principal amount of 6.75% Senior Notes that mature on April 15, 2021 (“6.75% Senior Notes”) and the $300 million aggregate principal amount of 5.75% Senior Notes that mature on February 1, 2023 (“5.75% Senior Notes” and together with the 6.75% Senior Notes, the “Senior Notes”) are unsecured senior obligations and rank equal in right of payment with all of the Company’s existing and any future unsecured senior debt, and are senior in right of payment to any future subordinated debt. The Senior Notes are jointly and severally guaranteed on a senior unsecured basis by our existing and future domestic subsidiaries that guarantee or are borrowers under our revolving credit facility. 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. The Company is subject to certain covenants under the respective indentures governing the Senior Notes that limit the Company’s ability to incur additional indebtedness, issue preferred stock, and make restricted payments, including dividends. The Company was in compliance with all covenants under its Senior Notes as of March 31, 2015, and through the filing date of this report. | |||||||
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2015 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
NOTE 6 - 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 condensed 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 filing date of this report, 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 2014 Form 10-K. | |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
STOCK-BASED COMPENSATION | |||||||
STOCK-BASED COMPENSATION | NOTE 7 - STOCK-BASED COMPENSATION | ||||||
Restricted Stock under the Long Term Incentive Plan | |||||||
The Company grants shares of restricted stock to directors, eligible employees and officers under its Long Term Incentive Plan (“LTIP”). Each share of restricted stock represents one share of the Company’s common stock to be released from restriction upon completion of the vesting period. The awards typically vest in one-third increments over three years. Each share of restricted stock is entitled to a non‑forfeitable dividend, if the Company were to declare one, and has the same voting rights as a share of the Company’s common stock. 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 three months ended March 31, 2015, the Company granted 355,598 shares of restricted stock under the Company’s LTIP to certain employees. The fair value of the issuance was $9.6 million. Total expense recorded for restricted stock for the three month periods ended March 31, 2015 and 2014, was $2.9 million and $6.6 million, respectively. As of March 31, 2015, unrecognized compensation cost was $24.3 million and will be amortized through 2018. | |||||||
A summary of the status and activity of non-vested restricted stock for the three months ended March 31, 2015 is presented below. | |||||||
Weighted- | |||||||
Average | |||||||
Restricted | Grant-Date | ||||||
Stock | Fair Value | ||||||
Non-vested at beginning of year | 589,529 | $ | 37.66 | ||||
Granted | 355,598 | $ | 27.11 | ||||
Vested | -208,113 | $ | 26.21 | ||||
Forfeited | -3,291 | $ | 43.97 | ||||
Non-vested at end of quarter | 733,723 | $ | 34.53 | ||||
Performance Stock Units under the Long Term Incentive Plan | |||||||
The Company grants performance stock units (“PSUs”) to certain officers as part of its LTIP. The number of shares of the Company’s common stock that may be issued to settle PSUs ranges from zero to two times the number of PSUs awarded. 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 in 2014 and thereafter 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 of the Company’s common stock 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. The performance criterion for the PSUs is based on a comparison of the Company’s total shareholder return (“TSR”) for the measurement period compared with the TSRs of a group of peer companies for the measurement period. Compensation expense associated with PSUs is recognized as general and administrative expense over the measurement period. | |||||||
The fair value of each PSU is estimated at the date of grant using a Monte Carlo simulation, which results in an expected percentage of PSUs to be earned during the performance period. The following table presents the assumptions used to determine the fair value of the PSUs granted during the three months ended March 31, 2015 and for the year ended December 31, 2014. | |||||||
For the Three Months Ended | For the Year Ended | ||||||
31-Mar-15 | 31-Dec-14 | ||||||
Expected term of award | 3 | 3 | |||||
Risk-free interest rate | 0.17% - 0.99% | 0.12% - 0.9% | |||||
Expected volatility | 65% | 40% - 45% | |||||
During the three months ended March 31, 2015, the Company granted 42,217 PSUs under the LTIP to certain officers. The fair value of the issuance was $1.5 million. Total expense recorded for PSUs for the three month periods ended March 31, 2015 and 2014 was $488,000 and $174,000, respectively. As of March 31, 2015, there was $4.5 million of total unrecognized compensation expense related to unvested PSUs to be amortized through 2018. | |||||||
A summary of the status and activity of PSUs for the three months ended March 31, 2015 is presented below: | |||||||
Weighted-Average | |||||||
Grant-Date | |||||||
PSU | Fair Value | ||||||
Non-vested at beginning of year(1) | 94,173 | $ | 37.55 | ||||
Granted(1) | 42,217 | $ | 34.50 | ||||
Vested(1) | — | $ | — | ||||
Forfeited(1) | — | $ | — | ||||
Non-vested at end of quarter(1) | 136,390 | $ | 36.61 | ||||
-1 | The number of awards assumes that the associated performance condition is met at the target amount. The final number of shares of the Company’s 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 | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||
FAIR VALUE MEASUREMENTS | NOTE 8 - FAIR VALUE MEASUREMENTS | |||||||||
The Company follows fair value measurement authoritative guidance, which defines fair value, establishes a framework for using fair value to measure assets and liabilities, and expands disclosures about fair value measurements. The authoritative accounting guidance 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. The statement establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: | ||||||||||
Level 1:Quoted prices are available in active markets for identical assets or liabilities | ||||||||||
Level 2:Quoted prices in active markets for similar assets and liabilities, 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 and non-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 and non-financial assets and liabilities that were accounted for at fair value as of March 31, 2015 and December 31, 2014 and their classification within the fair value hierarchy: | ||||||||||
As of March 31, 2015 | ||||||||||
Level 1 | Level 2 | Level 3 | ||||||||
(in thousands) | ||||||||||
Derivative assets(1) | $ | — | $ | 87,395 | $ | — | ||||
Unproved properties(2) | $ | — | $ | — | $ | 193,400 | ||||
As of December 31, 2014 | ||||||||||
Level 1 | Level 2 | Level 3 | ||||||||
(in thousands) | ||||||||||
Derivative assets(1) | $ | — | $ | 104,005 | $ | — | ||||
Proved properties(2) | $ | — | $ | — | $ | 407,900 | ||||
Asset retirement obligations(3) | $ | — | $ | — | $ | 6,200 | ||||
-1 | This represents a financial asset or liability that is measured at fair value on a recurring basis. | |||||||||
-2 | This represents non-financial assets that are measured at fair value on a nonrecurring basis due to impairments. This is the fair value of the asset base that was subjected to impairment and does not reflect the entire asset balance as presented on the accompanying balance sheets. Please refer to the Unproved Oil and Gas Properties and Proved Oil and Gas Properties sections below for additional discussion. | |||||||||
-3 | This represents the revision to estimate of the asset retirement obligation, which is a non-financial liability that is measured at fair value on a nonrecurring basis. Please refer to the Asset Retirement Obligation section below for additional discussion. | |||||||||
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 revolving credit facility. | ||||||||||
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 risk-adjusted discount rates and price forecasts selected by the Company’s management. The calculation of the risk-adjusted discount rate is a significant management estimate based on the best information available. Management believes that the risk-adjusted discount rate is representative of current market conditions and reflects the following factors: estimates 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, 2015. The Company impaired the Dorcheat Macedonia Field which had a carrying value of $519.2 million to its fair value of $391.9 million and recognized an impairment of $127.3 million for the year ended December 31, 2014. The Company impaired the McKamie Patton Field which had a carrying value of $41.0 million to its fair value of $16.0 million and recognized an impairment of $25.0 million for the year ended December 31, 2014. The Company impaired the McCallum Field which had a carrying value of $15.3 million to its fair value of zero and recognized an impairment of $15.3 for the year ended December 31, 2014. | ||||||||||
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 fully 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, remaining lease life, 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. The Company impaired the Wattenberg Field which had a carrying value of $198.9 million to its fair value of $193.4 million and recognized an impairment of unproved properties of $5.5 million due to lease expirations for the three months ended March 31, 2015. There were no unproved properties measured at fair value as of December 31, 2014. | ||||||||||
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 as of March 31, 2015. The Company had $6.2 million of asset retirement obligations recorded at fair value as of December 31, 2014. | ||||||||||
Long-term Debt | ||||||||||
As of March 31, 2015, the Company had $500 million of outstanding 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 $507.3 million and $507.6 million as of March 31, 2015 and December 31, 2014, respectively. The fair value of the 6.75% Senior Notes as of March 31, 2015 and December 31, 2014 was $486.3 million and $440.0 million, respectively. The 5.75% Senior Notes are recorded at cost on the accompanying balance sheets at $300.0 million as of March 31, 2015 and December 31, 2014. The fair value of the 5.75% Senior Notes as of March 31, 2015 and December 31, 2014 was $277.1 million and $243.0 million, respectively. The Senior Notes are measured using Level 1 inputs based on a secondary market trading price. The Company’s revolving credit facility, when drawn upon, approximates fair value as the applicable interest rates are floating. | ||||||||||
DERIVATIVES
DERIVATIVES | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
DERIVATIVES | |||||||||||||||||||||||||
DERIVATIVES | NOTE 9 - 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, 2015, and as of the filing date of this report, the Company had the following derivative commodity contracts in place: | |||||||||||||||||||||||||
Total Volumes | Average | Average | Average | ||||||||||||||||||||||
Settlement | Derivative | (Bbls/MMBtu | Average Fixed | Short Floor | Floor | Ceiling | Fair Market | ||||||||||||||||||
Period | Instrument | per day) | Price | Price | Price | Price | Value of Assets | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Oil | |||||||||||||||||||||||||
2Q 2015 | Swap | 5,000 | $ | 94.41 | $ | 20,315 | |||||||||||||||||||
3Q 2015 | Swap | 2,000 | $ | 93.43 | 7,428 | ||||||||||||||||||||
4Q 2015 | Swap | 2,000 | $ | 93.43 | 7,022 | ||||||||||||||||||||
2Q 2015 | 3-Way Collar | 5,500 | $ | 67.73 | $ | 84.09 | $ | 95.16 | 8,097 | ||||||||||||||||
3Q 2015 | 3-Way Collar | 6,500 | $ | 68.46 | $ | 84.62 | $ | 95.49 | 9,112 | ||||||||||||||||
4Q 2015 | 3-Way Collar | 6,500 | $ | 68.46 | $ | 84.62 | $ | 95.49 | 8,619 | ||||||||||||||||
2016 | 3-Way Collar | 5,500 | $ | 70.00 | $ | 85.00 | $ | 96.83 | 24,922 | ||||||||||||||||
$ | 85,515 | ||||||||||||||||||||||||
Gas | |||||||||||||||||||||||||
2Q - 4Q 2015 | 3-Way Collar | 15,000 | $ | 3.50 | $ | 4.00 | $ | 4.75 | $ | 1,880 | |||||||||||||||
$ | 1,880 | ||||||||||||||||||||||||
Total | $ | 87,395 | |||||||||||||||||||||||
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, 2015 and December 31, 2014: | |||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||
Balance Sheet Location | Fair Value | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||
Commodity contracts | Current assets | $ | 69,056 | ||||||||||||||||||||||
Commodity contracts | Noncurrent assets | 18,339 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||
Commodity contracts | Current liabilities | — | |||||||||||||||||||||||
Commodity contracts | Long-term liabilities | — | |||||||||||||||||||||||
Total derivative asset | $ | 87,395 | |||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Balance Sheet Location | Fair Value | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||
Commodity contracts | Current assets | $ | 86,240 | ||||||||||||||||||||||
Commodity contracts | Noncurrent assets | 17,765 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||
Commodity contracts | Current liabilities | — | |||||||||||||||||||||||
Commodity contracts | Long-term liabilities | — | |||||||||||||||||||||||
Total derivative asset | $ | 104,005 | |||||||||||||||||||||||
The following table summarizes the components of the derivative gain (loss) presented on the accompanying statements of operations: | |||||||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Derivative cash settlement gain (loss): | |||||||||||||||||||||||||
Oil contracts | $ | 34,791 | $ | -1,699 | |||||||||||||||||||||
Gas contracts | 675 | -528 | |||||||||||||||||||||||
Total derivative cash settlement gain (loss)(1) | $ | 35,466 | $ | -2,227 | |||||||||||||||||||||
Change in fair value loss | $ | -16,610 | $ | -6,551 | |||||||||||||||||||||
Total derivative gain (loss)(2) | $ | 18,856 | $ | -8,778 | |||||||||||||||||||||
-1 | Derivative cash settlement gain (loss) for the three months ended March 31, 2015 and 2014 is reported in the derivative cash settlements line item on the accompanying condensed consolidated statements of cash flows within the net cash for investing activities. | ||||||||||||||||||||||||
-2 | Total derivative gain (loss) for the three months ended March 31, 2015 and 2014 is reported in the derivative gain (loss) line item on the accompanying condensed consolidated statements of cash flows within the net cash provided by operating activities. | ||||||||||||||||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
EARNINGS PER SHARE | |||||||||||
EARNINGS PER SHARE | NOTE 10 - 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 measurement period applicable to such PSUs. Please refer to Note 7 - 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 and net income (loss) for the three month periods ended March 31, 2015 and 2014: | |||||||||||
Three Months Ended March 31, | |||||||||||
2015 | 2014 | ||||||||||
(in thousands, except per share amounts) | |||||||||||
Income (loss) from continuing operations: | |||||||||||
Income (loss) from continuing operations | $ | -18,421 | $ | 9,577 | |||||||
Less: undistributed earnings (loss) to unvested restricted stock | -314 | 181 | |||||||||
Undistributed earnings (loss) to common shareholders | -18,107 | 9,396 | |||||||||
Basic income (loss) per common share from continuing operations | $ | -0.41 | $ | 0.24 | |||||||
Diluted income (loss) per common share from continuing operations | $ | -0.41 | $ | 0.24 | |||||||
Income from discontinued operations: | |||||||||||
Income from discontinued operations | $ | — | $ | 3,954 | |||||||
Less: undistributed earnings to unvested restricted stock | — | 75 | |||||||||
Undistributed earnings to common shareholders | — | 3,879 | |||||||||
Basic income per common share from discontinued operations | $ | — | $ | 0.10 | |||||||
Diluted income per common share from discontinued operations | $ | — | $ | 0.10 | |||||||
Net income (loss): | |||||||||||
Net income (loss) | $ | -18,421 | $ | 13,531 | |||||||
Less: undistributed earnings (loss) to unvested restricted stock | -314 | 256 | |||||||||
Undistributed earnings (loss) to common shareholders | -18,107 | 13,275 | |||||||||
Basic net income (loss) per common share | $ | -0.41 | $ | 0.34 | |||||||
Diluted net income (loss) per common share | $ | -0.41 | $ | 0.34 | |||||||
Weighted-average shares outstanding - basic | 44,519,701 | 39,605,083 | |||||||||
Add: dilutive effect of contingent PSUs | — | 156,655 | |||||||||
Weighted-average shares outstanding - diluted | 44,519,701 | 39,761,738 | |||||||||
The Company was in a net loss position for the three months ended March 31, 2015, which made the 147,786 potentially dilutive shares anti-dilutive. The Company had no anti-dilutive shares for the three months ended March 31, 2014. | |||||||||||
CAPITAL_STOCK
CAPITAL STOCK | 3 Months Ended |
Mar. 31, 2015 | |
CAPITAL STOCK | |
CAPITAL STOCK | NOTE 11 - CAPITAL STOCK |
On February 6, 2015, the Company completed a public offering of 8,050,000 shares of its common stock generating net proceeds of $202.8 million after deducting underwriter discounts, commissions and offering expenses of approximately $6.5 million. The Company used a portion of the net proceeds to repay all of the outstanding borrowings under its revolving credit facility and intends to use the remaining net proceeds for general corporate purposes, including its drilling and development program and other capital expenditures. | |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
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, 2015 and 2014, the effective tax rate was 38.5%. | |
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. | |
As of March 31, 2015, the Company had no unrecognized tax benefits. The Company’s management does not believe that there are any new items or changes in facts or judgments that should impact the Company's tax position during the first quarter of 2015. Given the substantial net operating loss carry forward at the federal level, neither significant interest expense nor penalties charged for any examining agents’ tax adjustments of income tax returns are anticipated, as any such adjustments would very likely adjust only net operating loss carry forward. | |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2015 | |
SUBSEQUENT EVENTS: | |
SUBSEQUENT EVENTS | NOTE 13 – SUBSEQUENT EVENTS |
During the first quarter of 2015, the Company formed a wholly owned subsidiary, Rocky Mountain Infrastructure, LLC, to hold gathering systems and related infrastructure that service the Wattenberg Field. Subsequent to March 31, 2015, the Company transferred approximately $38 million of gathering systems and pipelines from the Bonanza Creek Energy Operating Company, LLC subsidiary to the Rocky Mountain Infrastructure, LLC subsidiary. | |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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, Bonanza Creek Energy Upstream LLC, Bonanza Creek Energy Midstream, LLC, Holmes Eastern Company, LLC and Rocky Mountain Infrastructure, 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 2014 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 2014 Form 10-K. | |
Recently Issued Accounting Standards | |
In March 2015, the Financial Accounting Standards Board issued Update No. 2015-03 – Interest – Imputation of Interest, Simplifying the Presentation of Debt Issuance Costs. The update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This authoritative accounting guidance is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years on a retrospective basis. 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. | |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
DISCONTINUED OPERATIONS | ||||||
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, | ||||||
2015 | 2014 | |||||
(in thousands) | ||||||
Net revenues: | ||||||
Oil and gas sales | $ | — | $ | 361 | ||
Operating expenses: | ||||||
Lease operating expense | — | 366 | ||||
Severance and ad valorem taxes | — | 13 | ||||
Depreciation, depletion and amortization | — | 67 | ||||
Total operating expenses | 446 | |||||
Loss from operations associated with oil and gas properties held for sale | $ | — | $ | -85 | ||
ACCOUNTS_PAYABLE_AND_ACCRUED_E1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |||||||
Schedule of accounts payable and accrued expenses | |||||||
As of March 31, | As of December 31, | ||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Drilling and completion costs | $ | 51,964 | $ | 82,844 | |||
Accounts payable trade | 15,326 | 5,493 | |||||
Accrued general and administrative cost | 6,755 | 13,541 | |||||
Lease operating expense | 4,249 | 3,569 | |||||
Accrued reclamation cost | 162 | 162 | |||||
Accrued interest | 18,311 | 14,839 | |||||
Production and ad valorem taxes and other | 22,237 | 25,340 | |||||
Total accounts payable and accrued expenses | $ | 119,004 | $ | 145,788 | |||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
LONG-TERM DEBT | |||||||
Schedule of long-term debt | |||||||
As of March 31, | As of December 31, | ||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Revolving credit facility | $ | — | $ | 33,000 | |||
6.75% Senior Notes due 2021 | 500,000 | 500,000 | |||||
Unamortized premium on 6.75% Senior Notes | 7,313 | 7,619 | |||||
5.75% Senior Notes due 2023 | 300,000 | 300,000 | |||||
Total long-term debt | $ | 807,313 | $ | 840,619 | |||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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 | 589,529 | $ | 37.66 | ||||
Granted | 355,598 | $ | 27.11 | ||||
Vested | -208,113 | $ | 26.21 | ||||
Forfeited | -3,291 | $ | 43.97 | ||||
Non-vested at end of quarter | 733,723 | $ | 34.53 | ||||
Schedule of assumptions used to determine the fair value of the PSUs granted | |||||||
For the Three Months Ended | For the Year Ended | ||||||
31-Mar-15 | 31-Dec-14 | ||||||
Expected term of award | 3 | 3 | |||||
Risk-free interest rate | 0.17% - 0.99% | 0.12% - 0.9% | |||||
Expected volatility | 65% | 40% - 45% | |||||
Summary of the status and activity of PSUs | |||||||
Weighted-Average | |||||||
Grant-Date | |||||||
PSU | Fair Value | ||||||
Non-vested at beginning of year(1) | 94,173 | $ | 37.55 | ||||
Granted(1) | 42,217 | $ | 34.50 | ||||
Vested(1) | — | $ | — | ||||
Forfeited(1) | — | $ | — | ||||
Non-vested at end of quarter(1) | 136,390 | $ | 36.61 | ||||
The number of awards assumes that the associated performance condition is met at the target amount. The final number of shares of the Company’s 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) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||
Schedule of financial assets and liabilities at fair value on recurring basis | ||||||||||
As of March 31, 2015 | ||||||||||
Level 1 | Level 2 | Level 3 | ||||||||
(in thousands) | ||||||||||
Derivative assets(1) | $ | — | $ | 87,395 | $ | — | ||||
Unproved properties(2) | $ | — | $ | — | $ | 193,400 | ||||
As of December 31, 2014 | ||||||||||
Level 1 | Level 2 | Level 3 | ||||||||
(in thousands) | ||||||||||
Derivative assets(1) | $ | — | $ | 104,005 | $ | — | ||||
Proved properties(2) | $ | — | $ | — | $ | 407,900 | ||||
Asset retirement obligations(3) | $ | — | $ | — | $ | 6,200 | ||||
-1 | This represents a financial asset or liability that is measured at fair value on a recurring basis. | |||||||||
-2 | This represents non-financial assets that are measured at fair value on a nonrecurring basis due to impairments. This is the fair value of the asset base that was subjected to impairment and does not reflect the entire asset balance as presented on the accompanying balance sheets. Please refer to the Unproved Oil and Gas Properties and Proved Oil and Gas Properties sections below for additional discussion. | |||||||||
-3 | This represents the revision to estimate of the asset retirement obligation, which is a non-financial liability that is measured at fair value on a nonrecurring basis. Please refer to the Asset Retirement Obligation section below for additional discussion. | |||||||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
DERIVATIVES | |||||||||||||||||||||||||
Summary of derivative commodity contracts in place | As of March 31, 2015, and as of the filing date of this report, the Company had the following derivative commodity contracts in place: | ||||||||||||||||||||||||
Total Volumes | Average | Average | Average | ||||||||||||||||||||||
Settlement | Derivative | (Bbls/MMBtu | Average Fixed | Short Floor | Floor | Ceiling | Fair Market | ||||||||||||||||||
Period | Instrument | per day) | Price | Price | Price | Price | Value of Assets | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Oil | |||||||||||||||||||||||||
2Q 2015 | Swap | 5,000 | $ | 94.41 | $ | 20,315 | |||||||||||||||||||
3Q 2015 | Swap | 2,000 | $ | 93.43 | 7,428 | ||||||||||||||||||||
4Q 2015 | Swap | 2,000 | $ | 93.43 | 7,022 | ||||||||||||||||||||
2Q 2015 | 3-Way Collar | 5,500 | $ | 67.73 | $ | 84.09 | $ | 95.16 | 8,097 | ||||||||||||||||
3Q 2015 | 3-Way Collar | 6,500 | $ | 68.46 | $ | 84.62 | $ | 95.49 | 9,112 | ||||||||||||||||
4Q 2015 | 3-Way Collar | 6,500 | $ | 68.46 | $ | 84.62 | $ | 95.49 | 8,619 | ||||||||||||||||
2016 | 3-Way Collar | 5,500 | $ | 70.00 | $ | 85.00 | $ | 96.83 | 24,922 | ||||||||||||||||
$ | 85,515 | ||||||||||||||||||||||||
Gas | |||||||||||||||||||||||||
2Q - 4Q 2015 | 3-Way Collar | 15,000 | $ | 3.50 | $ | 4.00 | $ | 4.75 | $ | 1,880 | |||||||||||||||
$ | 1,880 | ||||||||||||||||||||||||
Total | $ | 87,395 | |||||||||||||||||||||||
Summary of all the Company's derivative positions reported on the accompanying balance sheets | |||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||
Balance Sheet Location | Fair Value | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||
Commodity contracts | Current assets | $ | 69,056 | ||||||||||||||||||||||
Commodity contracts | Noncurrent assets | 18,339 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||
Commodity contracts | Current liabilities | — | |||||||||||||||||||||||
Commodity contracts | Long-term liabilities | — | |||||||||||||||||||||||
Total derivative asset | $ | 87,395 | |||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Balance Sheet Location | Fair Value | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||
Commodity contracts | Current assets | $ | 86,240 | ||||||||||||||||||||||
Commodity contracts | Noncurrent assets | 17,765 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||
Commodity contracts | Current liabilities | — | |||||||||||||||||||||||
Commodity contracts | Long-term liabilities | — | |||||||||||||||||||||||
Total derivative asset | $ | 104,005 | |||||||||||||||||||||||
Summary of the components of the derivative gain (loss) presented on the accompanying statements of operations | |||||||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Derivative cash settlement gain (loss): | |||||||||||||||||||||||||
Oil contracts | $ | 34,791 | $ | -1,699 | |||||||||||||||||||||
Gas contracts | 675 | -528 | |||||||||||||||||||||||
Total derivative cash settlement gain (loss)(1) | $ | 35,466 | $ | -2,227 | |||||||||||||||||||||
Change in fair value loss | $ | -16,610 | $ | -6,551 | |||||||||||||||||||||
Total derivative gain (loss)(2) | $ | 18,856 | $ | -8,778 | |||||||||||||||||||||
-1 | Derivative cash settlement gain (loss) for the three months ended March 31, 2015 and 2014 is reported in the derivative cash settlements line item on the accompanying condensed consolidated statements of cash flows within the net cash for investing activities. | ||||||||||||||||||||||||
Total derivative gain (loss) for the three months ended March 31, 2015 and 2014 is reported in the derivative gain (loss) line item on the accompanying condensed consolidated 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, 2015 | |||||||||||
EARNINGS PER SHARE | |||||||||||
Schedule of calculation of earnings per basic and diluted shares from continuing and discontinued operations | |||||||||||
Three Months Ended March 31, | |||||||||||
2015 | 2014 | ||||||||||
(in thousands, except per share amounts) | |||||||||||
Income (loss) from continuing operations: | |||||||||||
Income (loss) from continuing operations | $ | -18,421 | $ | 9,577 | |||||||
Less: undistributed earnings (loss) to unvested restricted stock | -314 | 181 | |||||||||
Undistributed earnings (loss) to common shareholders | -18,107 | 9,396 | |||||||||
Basic income (loss) per common share from continuing operations | $ | -0.41 | $ | 0.24 | |||||||
Diluted income (loss) per common share from continuing operations | $ | -0.41 | $ | 0.24 | |||||||
Income from discontinued operations: | |||||||||||
Income from discontinued operations | $ | — | $ | 3,954 | |||||||
Less: undistributed earnings to unvested restricted stock | — | 75 | |||||||||
Undistributed earnings to common shareholders | — | 3,879 | |||||||||
Basic income per common share from discontinued operations | $ | — | $ | 0.10 | |||||||
Diluted income per common share from discontinued operations | $ | — | $ | 0.10 | |||||||
Net income (loss): | |||||||||||
Net income (loss) | $ | -18,421 | $ | 13,531 | |||||||
Less: undistributed earnings (loss) to unvested restricted stock | -314 | 256 | |||||||||
Undistributed earnings (loss) to common shareholders | -18,107 | 13,275 | |||||||||
Basic net income (loss) per common share | $ | -0.41 | $ | 0.34 | |||||||
Diluted net income (loss) per common share | $ | -0.41 | $ | 0.34 | |||||||
Weighted-average shares outstanding - basic | 44,519,701 | 39,605,083 | |||||||||
Add: dilutive effect of contingent PSUs | — | 156,655 | |||||||||
Weighted-average shares outstanding - diluted | 44,519,701 | 39,761,738 | |||||||||
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | |
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 | $6,000,000 | ||
Gain on sale of oil and gas properties | 6,500,000 | ||
Net revenues: | |||
Oil and gas sales | 73,076,000 | 127,395,000 | |
Operating expenses: | |||
Lease operating expense | 19,264,000 | 17,082,000 | |
Severance and ad valorem taxes | 6,496,000 | 10,749,000 | |
Exploration | 498,000 | 1,083,000 | |
Total operating expenses | 107,603,000 | 93,760,000 | |
Loss from operations associated with oil and gas properties held for sale | -85,000 | ||
Oil and gas properties in California | |||
Net revenues: | |||
Oil and gas sales | 361,000 | ||
Operating expenses: | |||
Lease operating expense | 366,000 | ||
Severance and ad valorem taxes | 13,000 | ||
Depreciation, depletion and amortization | 67,000 | ||
Total operating expenses | 446,000 | ||
Loss from operations associated with oil and gas properties held for sale | ($85,000) |
ACCOUNTS_PAYABLE_AND_ACCRUED_E2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts payable and accrued expenses contain the following: | ||
Drilling and completion costs | $51,964 | $82,844 |
Accounts payable | 15,326 | 5,493 |
Accrued general and administrative cost | 6,755 | 13,541 |
Lease operating expense | 4,249 | 3,569 |
Accrued reclamation cost | 162 | 162 |
Interest | 18,311 | 14,839 |
Production and ad valorem taxes and other | 22,237 | 25,340 |
Total accounts payable and accrued expenses | $119,004 | $145,788 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
LONG-TERM DEBT | ||
Long-term debt | $807,313,000 | $840,619,000 |
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 | |
Revolver | ||
LONG-TERM DEBT | ||
Maximum borrowing capacity | 1,000,000,000 | |
Bank commitments | 600,000,000 | |
Company elected bank commitment limit | 500,000,000 | |
Long-term debt | 0 | 33,000,000 |
Remaining borrowing capacity | 576,000,000 | 543,000,000 |
Letters of credit outstanding | 24,000,000 | 24,000,000 |
6.75% Senior Notes | ||
LONG-TERM DEBT | ||
Unamortized premium on 6.75% Senior Notes | 7,313,000 | 7,619,000 |
Long-term debt | 500,000,000 | |
Long term debt - gross | 500,000,000 | 500,000,000 |
Amount of notes issued | 500,000,000 | |
Interest rate (as a percent) | 6.75% | 6.75% |
5.75% Senior Notes | ||
LONG-TERM DEBT | ||
Long-term debt | 300,000,000 | |
Long term debt - gross | 300,000,000 | 300,000,000 |
Amount of notes issued | $300,000,000 | |
Interest rate (as a percent) | 5.75% | 5.75% |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Details) | 3 Months Ended |
Mar. 31, 2015 | |
claim | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
Number of Claims | 0 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |||
PSUs | |||||
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | |||||
Expected volatility (as a percent) | 65.00% | ||||
PSUs | Minimum | |||||
Weighted-Average Grant-Date Fair Value | |||||
Ratio at which award holders get common stock of the company | 0 | ||||
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | |||||
Risk-free interest rate (as a percent) | 0.17% | 0.12% | |||
Expected volatility (as a percent) | 40.00% | ||||
PSUs | Maximum | |||||
Weighted-Average Grant-Date Fair Value | |||||
Ratio at which award holders get common stock of the company | 200 | ||||
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | |||||
Risk-free interest rate (as a percent) | 0.99% | 0.90% | |||
Expected volatility (as a percent) | 45.00% | ||||
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 | ||||
Vesting period | 3 years | ||||
Restricted Stock | |||||
Non-vested at beginning of year (in shares) | 589,529 | ||||
Granted (in shares) | 355,598 | ||||
Vested (in shares) | -208,113 | ||||
Forfeited (in shares) | -3,291 | ||||
Non-vested at end of year (in shares) | 733,723 | ||||
Weighted-Average Grant-Date Fair Value | |||||
Non-vested at beginning of year (in dollars per share) | 37.66 | ||||
Granted (in dollars per share) | 27.11 | ||||
Vested (in dollars per share) | 26.21 | ||||
Forfeited (in dollars per share) | 43.97 | ||||
Non-vested at end of year (in dollars per share) | 34.53 | ||||
Shares granted | 355,598 | ||||
2011 Long Term Incentive Plan | Restricted shares | Employees | |||||
STOCK-BASED COMPENSATION | |||||
Fair value of shares granted | 9,600,000 | ||||
Stock-based compensation expense | 2,900,000 | 6,600,000 | |||
Unrecognized compensation cost | 24,300,000 | ||||
Restricted Stock | |||||
Granted (in shares) | 355,598 | ||||
Weighted-Average Grant-Date Fair Value | |||||
Shares granted | 355,598 | ||||
2011 Long Term Incentive Plan | PSUs | |||||
Restricted Stock | |||||
Non-vested at beginning of year (in shares) | 94,173 | [1] | |||
Granted (in shares) | 42,217 | [1] | |||
Non-vested at end of year (in shares) | 136,390 | [1] | 94,173 | [1] | |
Weighted-Average Grant-Date Fair Value | |||||
Non-vested at beginning of year (in dollars per share) | 37.55 | [1] | |||
Granted (in dollars per share) | 34.5 | [1] | |||
Non-vested at end of year (in dollars per share) | 36.61 | [1] | 37.55 | [1] | |
Vesting percent | 66.67% | ||||
Percentage of awards earned during performance cycle | 200.00% | ||||
Shares granted | 42,217 | [1] | |||
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | |||||
Expected term of award | 3 years | 3 years | |||
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 | |||||
Restricted Stock | |||||
Granted (in shares) | 42,217 | ||||
Weighted-Average Grant-Date Fair Value | |||||
Measurement period | 3 years | ||||
Shares granted | 42,217 | ||||
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 | 1,500,000 | ||||
Stock-based compensation expense | 488,000 | 174,000 | |||
Unrecognized compensation cost | 4,500,000 | ||||
[1] | The number of awards assumes that the associated performance condition is met at the target amount. The final number of shares of the Companybs 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_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | item | |||
Financial assets and liabilities accounted for at fair value | ||||
Unproved properties | $202,409 | $206,721 | ||
Proved properties | 2,072,397 | 1,924,380 | ||
Asset retirement obligations | 21,786 | 21,464 | ||
Total number of counterparties in derivative financial instruments | 5 | |||
Level 2 | ||||
Financial assets and liabilities accounted for at fair value | ||||
Derivative assets | 87,395 | [1] | 104,005 | [1] |
Level 3 | ||||
Financial assets and liabilities accounted for at fair value | ||||
Unproved properties | 193,400 | [2] | ||
Proved properties | 407,900 | [2] | ||
Asset retirement obligations | $6,200 | [3] | ||
[1] | This represents a financial asset or liability that is measured at fair value on a recurring basis | |||
[2] | This represents non-financial assets that are measured at fair value on a nonrecurring basis due to impairments. This is the fair value of the asset base that was subjected to impairment and does not reflect the entire asset balance as presented on the accompanying balance sheets. Please refer to the Unproved Oil and Gas Properties and Proved Oil and Gas Properties sections below for additional discussion | |||
[3] | This represents the revision to estimate of the asset retirement obligation, which is a non-financial liability that is measured at fair value on a nonrecurring basis. Please refer to the Asset Retirement Obligation section below for additional discussion. |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Derivatives measured at fair value | ||
Unproved oil and gas property impairments | $5,469,000 | |
Proved properties | 2,072,397,000 | 1,924,380,000 |
Unproved properties | 202,409,000 | 206,721,000 |
Asset retirement obligations | 21,786,000 | 21,464,000 |
Outstanding amount | 807,313,000 | 840,619,000 |
Dorcheat Macedonia Field [Member] | ||
Derivatives measured at fair value | ||
Proved oil and gas property impairments | 127,300,000 | |
Proved properties | 519,200,000 | |
McKamie Patton Field [Member] | ||
Derivatives measured at fair value | ||
Proved oil and gas property impairments | 25,000,000 | |
Proved properties | 41,000,000 | |
McCallum Field [Member] | ||
Derivatives measured at fair value | ||
Proved oil and gas property impairments | 15,300,000 | |
Proved properties | 15,300,000 | |
Wattenberg Field Member | ||
Derivatives measured at fair value | ||
Unproved oil and gas property impairments | 5,500,000 | |
Unproved properties | 198,900,000 | |
6.75% Senior Notes | ||
Derivatives measured at fair value | ||
Outstanding amount | 500,000,000 | |
Long term debt - gross | 500,000,000 | 500,000,000 |
Long-term debt | 507,300,000 | 507,600,000 |
Interest rate (as a percent) | 6.75% | 6.75% |
5.75% Senior Notes | ||
Derivatives measured at fair value | ||
Outstanding amount | 300,000,000 | |
Long term debt - gross | 300,000,000 | 300,000,000 |
Interest rate (as a percent) | 5.75% | 5.75% |
Fair value of senior notes | 277,100,000 | 243,000,000 |
Fair Value | ||
Derivatives measured at fair value | ||
Proved properties | 0 | |
Unproved properties | 0 | 0 |
Asset retirement obligations | 0 | 6,200,000 |
Fair value of senior notes | 486,300,000 | 440,000,000 |
Fair Value | Dorcheat Macedonia Field [Member] | ||
Derivatives measured at fair value | ||
Proved properties | 391,900,000 | |
Fair Value | McKamie Patton Field [Member] | ||
Derivatives measured at fair value | ||
Proved properties | 16,000,000 | |
Fair Value | McCallum Field [Member] | ||
Derivatives measured at fair value | ||
Proved properties | 0 | |
Fair Value | Wattenberg Field Member | ||
Derivatives measured at fair value | ||
Unproved properties | $193,400,000 |
DERIVATIVES_Details
DERIVATIVES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
DERIVATIVES | ||
Number of derivative instruments qualified for hedging instruments | 0 | |
Commodity derivative | ||
Derivative contract | ||
Fair Value of Asset (Liability) | $87,395 | $104,005 |
Commodity derivative | Oil | ||
Derivative contract | ||
Fair Value of Asset (Liability) | 85,515 | |
Commodity derivative | Natural gas | ||
Derivative contract | ||
Fair Value of Asset (Liability) | 1,880 | |
Commodity derivative | Swap | Oil | ||
Derivative contract | ||
Total Volumes (in units per day) | 5,000 | |
Average Fixed Price | 94.41 | |
Fair Value of Asset (Liability) | 20,315 | |
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) | 7,428 | |
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) | 7,022 | |
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) | 8,097 | |
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) | 9,112 | |
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) | 8,619 | |
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) | 24,922 | |
Commodity derivative | 3-Way Collar | Natural gas | 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) | $1,880 |
DERIVATIVES_Details_2
DERIVATIVES (Details 2) (Commodity derivative, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivatives measured at fair value | ||
Total derivative asset | $87,395 | $104,005 |
Current assets | ||
Derivatives measured at fair value | ||
Derivative assets | 69,056 | 86,240 |
Noncurrent assets | ||
Derivatives measured at fair value | ||
Derivative assets | $18,339 | $17,765 |
DERIVATIVES_Details_3
DERIVATIVES (Details 3) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Components of the derivative gain (loss) | ||||
Derivative gain (loss) | $18,856 | ($8,778) | ||
Commodity derivative | ||||
Components of the derivative gain (loss) | ||||
Derivative cash settlement gain (loss) | 35,466 | [1] | -2,227 | [1] |
Change in fair value gain (loss) | -16,610 | -6,551 | ||
Derivative gain (loss) | 18,856 | [2] | -8,778 | [2] |
Commodity derivative | Oil | ||||
Components of the derivative gain (loss) | ||||
Derivative cash settlement gain (loss) | 34,791 | -1,699 | ||
Commodity derivative | Natural gas | ||||
Components of the derivative gain (loss) | ||||
Derivative cash settlement gain (loss) | $675 | ($528) | ||
[1] | Derivative cash settlement gain (loss) for the three months ended March 31, 2015 and 2014 is reported in the derivative cash settlements line item on the accompanying condensed consolidated statements of cash flows within the net cash for investing activities. | |||
[2] | Total derivative gain (loss) for the three months ended March 31, 2015 and 2014 is reported in the derivative gain (loss) line item on the accompanying condensed consolidated statements of cash flows within the net cash provided by operating activities |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income (loss) from continuing operations: | ||
Income (loss) from continuing operations | ($18,421) | $9,577 |
Less: undistributed earnings (loss) to unvested restricted stock | -314 | 181 |
Undistributed earnings (loss) to common shareholders | -18,107 | 9,396 |
Basic income (loss) per common share from continuing operations (in dollars per share) | ($0.41) | $0.24 |
Diluted income (loss) per common share from continuing operations (in dollars per share) | ($0.41) | $0.24 |
Income from discontinued operations: | ||
Income from discontinued operations | 3,954 | |
Less: undistributed earnings to unvested restricted stock | 75 | |
Undistributed earnings to common shareholders | 3,879 | |
Basic income per common share from discontinued operations (in dollars per share) | $0.10 | |
Diluted income per common share from discontinued operations (in dollars per share) | $0.10 | |
Net income (loss): | ||
Net income (loss) | -18,421 | 13,531 |
Less: undistributed earnings (loss) to unvested restricted stock | -314 | 256 |
Undistributed earnings (loss) to common shareholders | ($18,107) | $13,275 |
Basic net income (loss) per common share (in dollars per share) | ($0.41) | $0.34 |
Diluted net income (loss) per common share (in dollars per share) | ($0.41) | $0.34 |
Weighted-average shares outstanding - basic | 44,519,701 | 39,605,083 |
Add: dilutive effect of contingent PSUs | 156,655 | |
Weighted-average shares outstanding - diluted | 44,519,701 | 39,761,738 |
Antidilutive shares | 0 | |
Net loss position for potentially dilutive shares anti-dilutive | 147,786 |
CAPITAL_STOCK_Details
CAPITAL STOCK (Details) (USD $) | 3 Months Ended | 0 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Feb. 06, 2015 |
Net proceeds | $209,300 | |
Underwriter discounts, commissions and offering expenses | 6,492 | |
IPO [Member] | ||
Shares of common stock sold in initial public offering | 8,050,000 | |
Net proceeds | 202,800 | |
Underwriter discounts, commissions and offering expenses | $6,500 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reconciliation of effective tax rate to expected federal tax rate | ||
Effective tax rate (as a percent) | 38.50% | 38.50% |
Additional federal income tax expense | ($11,537) | $8,471 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details): (Parent Company [Member], Subsequent event, Rocky Mountain Infrastructure LLC [Member], USD $) | 1-May-15 |
In Millions, unless otherwise specified | |
Parent Company [Member] | Subsequent event | Rocky Mountain Infrastructure LLC [Member] | |
Subsequent Event | |
Gathering systems and pipelines | $38 |