Civitas Resources (CIVI) 10-Q 28 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 23, 2015
Document and Entity Information
Entity Registrant Name	Bonanza Creek Energy, Inc.
Entity Central Index Key	1,509,589
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
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		49,748,846
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 15,340	$ 2,584
Accounts receivable:
Oil and gas sales	46,755	54,574
Joint interest and other	26,702	37,202
Prepaid expenses and other	13,870	12,522
Inventory of oilfield equipment	10,340	15,353
Derivative asset	55,419	86,240
Total current assets	168,426	208,475
Property and equipment (successful efforts method), at cost:
Proved properties	2,203,152	1,924,380
Less: accumulated depreciation, depletion and amortization	(716,954)	(592,073)
Total proved properties, net	1,486,198	1,332,307
Unproved properties	198,098	206,721
Wells in progress	130,575	139,208
Natural gas plant, net of accumulated depreciation of $9,640 in 2015 and $8,457 in 2014	66,770	67,840
Other property and equipment, net of accumulated depreciation of $7,804 in 2015 and $6,087 in 2014	9,333	10,401
Total property and equipment, net	1,890,974	1,756,477
Long-term derivative asset	11,310	17,765
Other noncurrent assets	22,176	23,372
Total assets	2,092,886	2,006,089
Current liabilities:
Accounts payable and accrued expenses (Note 4)	120,858	145,788
Oil and gas revenue distribution payable	38,566	40,659
Contractual obligation for land acquisition	12,000	12,000
Total current liabilities	171,424	198,447
Long-term liabilities:
Long-term debt (note 5)	850,006	840,619
Contractual obligation for land acquisition	11,884	11,186
Ad valorem taxes	19,668	28,635
Deferred income taxes	129,122	165,667
Asset retirement obligations	22,264	21,464
Total liabilities	$ 1,204,368	$ 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, 49,750,590 and 41,287,270 issued and outstanding in 2015 and 2014, respectively	$ 50	$ 41
Additional paid-in capital	799,534	591,511
Retained earnings	88,934	148,519
Total stockholders' equity	888,518	740,071
Total liabilities and stockholders' equity	$ 2,092,886	$ 2,006,089

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Natural gas plant, accumulated depreciation (in dollars)	$ 9,640	$ 8,457
Other property and equipment, accumulated depreciation (in dollars)	$ 7,804	$ 6,087
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	225,000,000	225,000,000
Common stock, shares issued	49,750,590	49,750,590
Common stock, shares outstanding	41,287,270	41,287,270

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating net revenues:
Oil and gas sales	$ 90,422	$ 151,682	$ 163,498	$ 279,077
Operating expenses:
Lease operating expense	20,895	18,018	40,159	35,099
Severance and ad valorem taxes	4,148	16,263	10,644	27,013
Exploration	5,748	96	6,246	1,179
Depreciation, depletion and amortization	69,925	54,117	128,929	95,248
Abandonment and impairment of unproved properties	14,527		19,996
General and administrative (including $4,359, $7,353, $7,787, and $14,150, respectively, of stock compensation)	21,602	24,547	38,474	48,261
Total operating expenses	136,845	113,041	244,448	206,800
Income (loss) from operations	(46,423)	38,641	(80,950)	72,277
Other income (expense):
Derivative gain (loss)	(5,478)	(27,307)	13,378	(36,085)
Interest expense	(14,468)	(9,434)	(28,706)	(18,769)
Other income	198	167	148	216
Total other expense	(19,748)	(36,574)	(15,180)	(54,638)
Income (loss) from continuing operations before taxes	(66,171)	2,067	(96,130)	17,639
Income tax benefit (expense)	(25,007)	796	(36,544)	6,791
Income (loss) from continuing operations	(41,164)	1,271	(59,586)	10,848
Discontinued operations (note 3):
Loss from operations associated with oil and gas properties held for sale				(85)
Gain (loss) on sale of oil and gas properties		(184)		6,330
Income tax expense		71		(2,404)
Gain (loss) from discontinued operations		(113)		3,841
Net income (loss)	(41,164)	1,158	(59,586)	14,689
Comprehensive income (loss)	$ (41,164)	$ 1,158	$ (59,586)	$ 14,689
Basic and diluted income (loss) per share:
Income (loss) from continuing operations (in dollars per share)	$ (0.83)	$ 0.03	$ (1.25)	$ 0.27
Income from discontinued operations (in dollars per share)				0.09
Net income (loss) per common share (in dollars per share)	$ (0.83)	$ 0.03	$ (1.25)	$ 0.36
Basic weighted-average common shares outstanding	48,923,335	39,758,489	46,733,682	39,655,968
Diluted weighted-average common shares outstanding	48,923,335	39,857,028	46,733,682	39,780,195

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF OPERATIONS
General and administrative, stock compensation	$ 4,359	$ 7,353	$ 7,787	$ 14,150

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ (59,586)	$ 14,689
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	128,929	95,316
Deferred income taxes	(36,544)	9,095
Abandonment and impairment of unproved properties	19,996
Dry hole expense	5,680
Stock-based compensation	7,787	14,150
Amortization of deferred financing costs	1,226	542
Accretion of contractual obligation for land acquisition	698	381
Derivative (gain) loss	(13,378)	36,085
Gain on sale of oil and gas properties		(6,330)
Other	(43)	(14)
Changes in current assets and liabilities:
Accounts receivable	18,319	(32,385)
Prepaid expenses and other assets	(1,348)	(2,575)
Accounts payable and accrued liabilities	(23,054)	29,114
Settlement of asset retirement obligations	(519)	(99)
Net cash provided by operating activities	48,163	157,969
Cash flows from investing activities:
Acquisition of oil and gas properties	(11,914)	(3,091)
Proceeds from sale of oil and gas properties		6,000
Exploration and development of oil and gas properties	(282,993)	(275,890)
Natural gas plant capital expenditures	(113)	(271)
Derivative cash settlements	50,655	(8,142)
(Increase) decrease in restricted cash		(11,280)
Additions to property and equipment - non oil and gas	(649)	(3,989)
Net cash used in investing activities	(245,014)	(296,663)
Cash flows from financing activities:
Proceeds from credit facility	87,000
Payments to credit facility	(77,000)
Proceeds from sale of common stock	209,300
Offering costs related to sale of common stock	(6,607)
Offering costs related to sale of Senior Notes	(93)	(277)
Payment of employee tax withholdings in exchange for the return of common stock	(2,448)	(4,766)
Deferred financing costs	(545)	(290)
Net cash provided by financing activities	209,607	(5,333)
Net change in cash and cash equivalents	12,756	(144,027)
Cash and cash equivalents:
Beginning of period	2,584	180,582
End of period	15,340	36,555
Supplemental cash flow disclosure:
Cash paid for interest	27,396	17,857
Cash paid for income taxes	820	100
Changes in working capital related to drilling expenditures, natural gas plant expenditures, and property acquisition	$ (12,935)	$ 10,920

ORGANIZATION AND BUSINESS

ORGANIZATION AND BUSINESS	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 2015
BASIS OF PRESENTATION
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - BASIS OF PRESENTATION These statements have been prepared in accordance with the Securities and Exchange Commission and accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information with the condensed consolidated balance sheets (“balance sheets”) and the condensed consolidated statements of cash flows as of December 31, 2014, being derived from audited financial statements. 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 June 30, 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 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. Rocky Mountain Infrastructure, LLC During the first quarter of 2015, the Company’s wholly owned subsidiary, Bonanza Creek Energy Operating Company, LLC, formed a wholly owned subsidiary, Rocky Mountain Infrastructure, LLC, to hold gathering systems and related infrastructure that service the Wattenberg Field. In May 2015, Bonanza Creek Energy Operating Company, LLC transferred approximately $46.5 million of gathering system assets to Rocky Mountain Infrastructure, LLC.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	6 Months Ended
	Jun. 30, 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. 3 million as of June 30 , 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Net revenues: Oil and gas sales $ — $ — $ — $ Operating expenses: Lease operating expense — — — Severance and ad valorem taxes — — — Depreciation, depletion and amortization — — — Total operating expenses — — — Loss from operations associated with oil and gas properties held for sale $ — $ — $ — $

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	6 Months Ended
	Jun. 30, 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 June 30, As of December 31, 2015 2014 (in thousands) Drilling and completion costs $ $ Accounts payable trade Accrued general and administrative cost Lease operating expense Accrued reclamation cost Accrued interest Production and ad valorem taxes and other Total accounts payable and accrued expenses $ $

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2015
LONG-TERM DEBT
LONG-TERM DEBT	NOTE 5 - LONG-TERM DEBT Long-term debt consisted of the following as of June 30, 2015 and December 31, 2014: As of June 30, As of December 31, 2015 2014 (in thousands) Revolving credit facility $ $ 6.75% Senior Notes due 2021 Unamortized premium on 6.75% Senior Notes 5.75% Senior Notes due 2023 Total long-term debt $ $ Credit Facility The Company’s senior secured revolving Credit Agreement, dated March 29, 2011, as amended (the “revolving credit facility”), was further amended on May 13, 2015 (the “2015 Amendment”) to decrease the borrowing base from $600 million to $550 million with a total credit facility size of $1 billion remaining unchanged. The Company elected to limit bank commitments at $500 million while reserving the option to access, at the Company’s request, the full $550 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, 2017. As of June 30, 2015, the Company had $43 million outstanding under the revolving credit facility with an available borrowing capacity of $483 million, if the Company elected to take advantage of the entire borrowing base, 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 $600 million borrowing base available at that date, after reduction for the outstanding letter of credit of $24 million . The revolving credit facility restricts, among other items, certain dividend payments, additional indebtedness, asset sales, loans, investments and mergers. The revolving credit facility also contains certain financial covenants, which require the maintenance of certain financial and leverage ratios, as defined by the revolving credit facility. The 2015 Amendment (i) permanently removed the maximum total debt to trailing twelve month debt to earnings before interest, income taxes, depreciation, depletion, and amortization, exploration expense and other non-cash charges (“ EBITDAX”) covenant of 4.00 to 1.00 and (ii) introduced both a maximum senior secured debt (defined as borrowings under the revolving credit facility, balances drawn under letters of credit, and any outstanding second lien debt) to trailing twelve month EBITDAX covenant of 2.50 to 1.00 and a minimum trailing twelve month interest to trailing twelve month EBITDAX coverage covenant of 2.50 to 1.00. The revolving credit facility also contains a minimum current ratio covenant of 1.00 to 1.00. The Company was in compliance with all financial and non-financial covenants as of June 30, 2015, and through the filing date of this report. Senior Unsecured 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 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 certain dividends. The Company was in compliance with all covenants under its Senior Notes as of June 30, 2015, and through the filing date of this report.

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	6 Months Ended
	Jun. 30, 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 A purchase and transportation agreement to deliver 12,580 barrels per day of crude oil over an initial five year term went into effect May 1, 2015. As of the filing date of this report, the Company did not have any shortfalls in delivering the minimum volumes committed. 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.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 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, as amended and restated (“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 six months ended June 30, 2015, the Company granted 523,000 shares of restricted stock under the Company’s LTIP to certain employees and non-employee directors. The fair value of the issuance was $13.9 million. Total expense recorded for restricted stock for the three month periods ended June 30, 2015 and 2014, was $3.6 million and $7.0 million, respectively, and $6.5 million and $13.6 million for the six months ended June 30, 2015 and 2014, respectively. As of June 30, 2015, unrecognized compensation cost was $24.6 million and will be amortized through 2018. A summary of the status and activity of non-vested restricted stock for the six months ended June 30, 2015 is presented below. Weighted- Average Restricted Grant-Date Stock Fair Value Non-vested at beginning of year $ Granted $ Vested $ Forfeited $ Non-vested at end of quarter $ Performance Stock Units under the Long Term Incentive Plan The Company grants performance stock units (“PSUs”) to certain officers under 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 same 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 six month period ended June 30, 2015 and for the year ended December 31, 2014. For the Six Months Ended For the Year Ended June 30, 2015 December 31, 2014 Expected term of award Risk-free interest rate 0.15% - 0.99% 0.12% - 0.9% Expected volatility 40% - 45 % During the six months ended June 30, 2015, the Company granted 144,363 PSUs under the LTIP to certain officers. The fair value of the issuance was $4.8 million. Total expense recorded for PSUs for the three month periods ended June 30, 2015 and 2014 was $852,000 and $392,000 , respectively, and $1.3 million and $567,000 for the six month periods ended June 30, 2015 and 2014, respectively. As of June 30, 2015, there was $6.6 million of total unrecognized compensation expense related to unvested PSUs to be amortized through 2017. A summary of the status and activity of PSUs for the six months ended June 30, 2015 is presented below: Weighted-Average Grant-Date PSU Fair Value Non-vested at beginning of year (1) $ Granted(1) $ Vested(1) — $ — Forfeited(1) $ Non-vested at end of quarter(1) $ (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	6 Months Ended
	Jun. 30, 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 June 30, 2015 and December 31, 2014 and their classification within the fair value hierarchy: As of June 30, 2015 Level 1 Level 2 Level 3 (in thousands) Derivative assets(1) $ — $ $ — Unproved properties(2) $ — $ — $ As of December 31, 2014 Level 1 Level 2 Level 3 (in thousands) Derivative assets(1) $ — $ $ — Proved properties(2) $ — $ — $ Asset retirement obligations(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 estimates 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 four 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 that needed to be measured at fair value at June 30, 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 non-core acreage in the Wattenberg Field due to lease expirations, which had a carrying value of $208.6 million to its fair value of $197.7 million and recognized an impairment of unproved properties for the six months ended June 30, 2015 of $10.9 million. The Company fully impaired the North Park Basin in June 2015, due to a strategic shift within the Company’s development plan, recognizing an impairment of unproved properties of $8.7 million. 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 June 30, 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 June 30, 2015, the Company had $500 million of outstanding 6.75% Senior Notes and $300 million of outstanding 5.75% Senior Notes, all of which are unsecured senior obligations. The 6.75% Senior Notes are recorded at cost plus the unamortized premium on the accompanying balance sheets at $507.0 million and $507.6 million as of June 30, 2015 and December 31, 2014, respectively. The fair value of the 6.75% Senior Notes as of June 30, 2015 and December 31, 2014 was $475.0 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 June 30, 2015 and December 31, 2014. The fair value of the 5.75% Senior Notes as of June 30, 2015 and December 31, 2014 was $269.3 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 approximates fair value as the applicable interest rates are floating. The outstanding balance under the revolving credit facility as of June 30, 2015 and December 31, 2014 was $43.0 million and $33.0 million, respectively.

DERIVATIVES

DERIVATIVES	6 Months Ended
	Jun. 30, 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 June 30, 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 Average Settlement Derivative (Bbls/MMBtu Fixed Short Floor Floor Ceiling Fair Market Period Instrument per day) Price Price Price Price Value of Assets (in thousands) Oil 3Q 2015 Swap $ $ 4Q 2015 Swap $ 3Q 2015 2-Way Collar $ $ 4Q 2015 2-Way Collar $ $ 2016 3-Way Collar $ $ $ $ Gas 3Q - 4Q 2015 3-Way Collar $ $ $ $ $ Total $ 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 June 30, 2015 and December 31, 2014: As of June 30, 2015 Balance Sheet Location Fair Value (in thousands) Derivative Assets: Commodity contracts Current assets $ Commodity contracts Noncurrent assets Derivative Liabilities: Commodity contracts Current liabilities — Commodity contracts Long-term liabilities — Total derivative asset $ As of December 31, 2014 Balance Sheet Location Fair Value (in thousands) Derivative Assets: Commodity contracts Current assets $ Commodity contracts Noncurrent assets Derivative Liabilities: Commodity contracts Current liabilities — Commodity contracts Long-term liabilities — Total derivative asset $ The following table summarizes the components of the derivative gain (loss) presented on the accompanying statements of operations: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (in thousands) Derivative cash settlement gain (loss): Oil contracts(1) $ $ $ $ Gas contracts Total derivative cash settlement gain (loss)(2) $ $ $ $ Change in fair value loss $ $ $ $ Total derivative gain (loss)(3) $ $ $ $ (1) During the three months ended June 30, 2015, the Company paid $10.5 million to convert its three-way collars, scheduled to settle during the third and fourth quarters of 2015, to two-way collars. (2) Derivative cash settlement gain (loss) for the six months ended June 30, 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 used in investing activities . (3) Total derivative gain (loss) for the six months ended June 30, 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	6 Months Ended
	Jun. 30, 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 zero to two times 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 income (loss) per basic and diluted shares from continuing and discontinued operations and net income (loss) for the three and six month periods ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands, except shares and per share amounts) Income (loss) from continuing operations: Income (loss) from continuing operations $ $ $ $ Less: undistributed income (loss) to unvested restricted stock Undistributed income (loss) to common shareholders Basic income (loss) per common share from continuing operations $ $ $ $ Diluted income (loss) per common share from continuing operations $ $ $ $ Income (loss) from discontinued operations: Income (loss) from discontinued operations $ — $ $ — $ Less: undistributed income to unvested restricted stock — — Undistributed income (loss) to common shareholders — — Basic income per common share from discontinued operations $ — $ — $ — $ Diluted income per common share from discontinued operations $ — $ — $ — $ Net income (loss): Net income (loss) $ $ $ $ Less: undistributed income (loss) to unvested restricted stock Undistributed income (loss) to common shareholders Basic net income (loss) per common share $ $ $ $ Diluted net income (loss) per common share $ $ $ $ Weighted-average shares outstanding - basic Add: dilutive effect of contingent PSUs — — Weighted-average shares outstanding - diluted The Company was in a net loss position for the three and six month periods ended June 30, 2015, which made the 80,906 and 106,644 potentially dilutive shares anti-dilutive, respectively. The Company had no anti-dilutive shares for the three and six month periods ended June 30, 2014.

CAPITAL STOCK

CAPITAL STOCK	6 Months Ended
	Jun. 30, 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 $202.7 million after deducting underwriter discounts, commissions and offering expenses of approximately $6.6 million. The Company used a portion of the net proceeds to repay all of the outstanding borrowings under its revolving credit facility and for general corporate purposes, including its drilling and development program and other capital expenditures.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 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 and six month periods ended June 30, 2015, the effective tax rate was 37.8% and 38.0 % , respectively. During the three and six month periods ended June 30, 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 June 30, 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 half 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, and any such adjustments would very likely adjust only net operating loss carry forward .

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2015
BASIS OF PRESENTATION
Principles of Consolidation	Principles of Consolidation The 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	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)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Net revenues: Oil and gas sales $ — $ — $ — $ Operating expenses: Lease operating expense — — — Severance and ad valorem taxes — — — Depreciation, depletion and amortization — — — Total operating expenses — — — Loss from operations associated with oil and gas properties held for sale $ — $ — $ — $

ACCOUNTS PAYABLE AND ACCRUED 21

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	6 Months Ended
	Jun. 30, 2015
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Schedule of accounts payable and accrued expenses	As of June 30, As of December 31, 2015 2014 (in thousands) Drilling and completion costs $ $ Accounts payable trade Accrued general and administrative cost Lease operating expense Accrued reclamation cost Accrued interest Production and ad valorem taxes and other Total accounts payable and accrued expenses $ $

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2015
LONG-TERM DEBT
Schedule of long-term debt	As of June 30, As of December 31, 2015 2014 (in thousands) Revolving credit facility $ $ 6.75% Senior Notes due 2021 Unamortized premium on 6.75% Senior Notes 5.75% Senior Notes due 2023 Total long-term debt $ $

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 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 $ Granted $ Vested $ Forfeited $ Non-vested at end of quarter $
Schedule of assumptions used to determine the fair value of the PSUs granted	For the Six Months Ended For the Year Ended June 30, 2015 December 31, 2014 Expected term of award Risk-free interest rate 0.15% - 0.99% 0.12% - 0.9% Expected volatility 40% - 45 %
Summary of the status and activity of PSUs	Weighted-Average Grant-Date PSU Fair Value Non-vested at beginning of year (1) $ Granted(1) $ Vested(1) — $ — Forfeited(1) $ Non-vested at end of quarter(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 (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS
Schedule of financial assets and liabilities at fair value on recurring basis	As of June 30, 2015 Level 1 Level 2 Level 3 (in thousands) Derivative assets(1) $ — $ $ — Unproved properties(2) $ — $ — $ As of December 31, 2014 Level 1 Level 2 Level 3 (in thousands) Derivative assets(1) $ — $ $ — Proved properties(2) $ — $ — $ Asset retirement obligations(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 estimates 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)	Jul. 27, 2015	Jun. 30, 2015	Jun. 30, 2015
Summary of all the Company's derivative positions reported on the accompanying balance sheets			As of June 30, 2015 Balance Sheet Location Fair Value (in thousands) Derivative Assets: Commodity contracts Current assets $ Commodity contracts Noncurrent assets Derivative Liabilities: Commodity contracts Current liabilities — Commodity contracts Long-term liabilities — Total derivative asset $ As of December 31, 2014 Balance Sheet Location Fair Value (in thousands) Derivative Assets: Commodity contracts Current assets $ Commodity contracts Noncurrent assets Derivative Liabilities: Commodity contracts Current liabilities — Commodity contracts Long-term liabilities — Total derivative asset $
Summary of the components of the derivative gain (loss) presented on the accompanying statements of operations			Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (in thousands) Derivative cash settlement gain (loss): Oil contracts(1) $ $ $ $ Gas contracts Total derivative cash settlement gain (loss)(2) $ $ $ $ Change in fair value loss $ $ $ $ Total derivative gain (loss)(3) $ $ $ $ (1) During the three months ended June 30, 2015, the Company paid $10.5 million to convert its three-way collars, scheduled to settle during the third and fourth quarters of 2015, to two-way collars. (2) Derivative cash settlement gain (loss) for the six months ended June 30, 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 used in investing activities . Total derivative gain (loss) for the six months ended June 30, 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 .
Commodity derivative
Summary of derivative commodity contracts in place	Total Volumes Average Average Average Average Settlement Derivative (Bbls/MMBtu Fixed Short Floor Floor Ceiling Fair Market Period Instrument per day) Price Price Price Price Value of Assets (in thousands) Oil 3Q 2015 Swap $ $ 4Q 2015 Swap $ 3Q 2015 2-Way Collar $ $ 4Q 2015 2-Way Collar $ $ 2016 3-Way Collar $ $ $ $ Gas 3Q - 4Q 2015 3-Way Collar $ $ $ $ $ Total $	Total Volumes Average Average Average Average Settlement Derivative (Bbls/MMBtu Fixed Short Floor Floor Ceiling Fair Market Period Instrument per day) Price Price Price Price Value of Assets (in thousands) Oil 3Q 2015 Swap $ $ 4Q 2015 Swap $ 3Q 2015 2-Way Collar $ $ 4Q 2015 2-Way Collar $ $ 2016 3-Way Collar $ $ $ $ Gas 3Q - 4Q 2015 3-Way Collar $ $ $ $ $ Total $

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2015
EARNINGS PER SHARE
Schedule of calculation of earnings per basic and diluted shares from continuing and discontinued operations	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands, except shares and per share amounts) Income (loss) from continuing operations: Income (loss) from continuing operations $ $ $ $ Less: undistributed income (loss) to unvested restricted stock Undistributed income (loss) to common shareholders Basic income (loss) per common share from continuing operations $ $ $ $ Diluted income (loss) per common share from continuing operations $ $ $ $ Income (loss) from discontinued operations: Income (loss) from discontinued operations $ — $ $ — $ Less: undistributed income to unvested restricted stock — — Undistributed income (loss) to common shareholders — — Basic income per common share from discontinued operations $ — $ — $ — $ Diluted income per common share from discontinued operations $ — $ — $ — $ Net income (loss): Net income (loss) $ $ $ $ Less: undistributed income (loss) to unvested restricted stock Undistributed income (loss) to common shareholders Basic net income (loss) per common share $ $ $ $ Diluted net income (loss) per common share $ $ $ $ Weighted-average shares outstanding - basic Add: dilutive effect of contingent PSUs — — Weighted-average shares outstanding - diluted

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details): $ in Millions	May. 31, 2015USD ($)
Rocky Mountain Infrastructure LLC [Member]
Related Party Transaction [Line Items]
Gathering systems and pipelines	$ 46.5

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			6 Months Ended
	Jun. 30, 2012	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 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		$ 6,000
Gain on sale of oil and gas properties						6,300
Net revenues:
Oil and gas sales		$ 90,422	$ 151,682		$ 163,498	279,077
Operating expenses:
Lease operating expense		20,895	18,018		40,159	35,099
Severance and ad valorem taxes		4,148	16,263		10,644	27,013
Exploration		5,748	96		6,246	1,179
Total operating expenses		$ 136,845	$ 113,041		$ 244,448	206,800
Loss from operations associated with oil and gas properties held for sale						(85)
Oil and gas properties in California
Net revenues:
Oil and gas sales						361
Operating expenses:
Lease operating expense						366
Severance and ad valorem taxes						12
Depreciation, depletion and amortization						68
Total operating expenses						446
Loss from operations associated with oil and gas properties held for sale						$ (85)

ACCOUNTS PAYABLE AND ACCRUED 29

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts payable and accrued expenses contain the following:
Drilling and completion costs	$ 69,909	$ 82,844
Accounts payable	5,812	5,493
Accrued general and administrative cost	10,281	13,541
Lease operating expense	3,432	3,569
Accrued reclamation cost	162	162
Accrued interest	14,225	14,839
Production and ad valorem taxes and other	17,037	25,340
Total accounts payable and accrued expenses	$ 120,858	$ 145,788

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	May. 13, 2015	Dec. 31, 2014
LONG-TERM DEBT
Long-term debt	$ 850,006,000		$ 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
Company elected bank commitment limit	500,000,000
Long-term debt	43,000,000		33,000,000
Remaining borrowing capacity	483,000,000		543,000,000
Letters of credit outstanding	24,000,000		24,000,000
Borrowing base before amendment	550,000,000	$ 600,000,000
6.75% Senior Notes
LONG-TERM DEBT
Unamortized premium on 6.75% Senior Notes	7,006,000		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%

LONG-TERM DEBT (Details)31

LONG-TERM DEBT (Details)	6 Months Ended
	Jun. 30, 2015USD ($)	May. 13, 2015USD ($)	Dec. 31, 2014USD ($)
LONG-TERM DEBT
Long-term debt	$ 850,006,000		$ 840,619,000
Maximum total debt to trailing twelve month EBITDAX covenant	4
Maximum senior secured debt to trailing twelve month EBITDAX covenant	2.50
Minimum trailing twelve month interest to trailing twelve month EBITDAX coverage covenant	2.50
Minimum current ratio covenant	1
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
Company elected bank commitment limit	500,000,000
Long-term debt	43,000,000		33,000,000
Remaining borrowing capacity	483,000,000		543,000,000
Letters of credit outstanding	24,000,000		24,000,000
Borrowing base before amendment	550,000,000	$ 600,000,000
6.75% Senior Notes
LONG-TERM DEBT
Unamortized premium on 6.75% Senior Notes	7,006,000		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 LI32

COMMITMENTS AND CONTINGENT LIABILITIES (Details) - 6 months ended Jun. 30, 2015	claimbbl
COMMITMENTS AND CONTINGENT LIABILITIES
Number of Claims	0
Minimum commitment of crude oil | bbl	12,580
Term of commitment period	5 years

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details)		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)	Dec. 31, 2014$ / sharesshares
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)				0.15%		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				2
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)				523,000
Vested (in shares)				(249,207)
Forfeited (in shares)				(26,641)
Non-vested at end of year (in shares)		836,681		836,681		589,529
Weighted-Average Grant-Date Fair Value
Non-vested at beginning of year (in dollars per share) | $ / shares				$ 37.66
Granted (in dollars per share) | $ / shares				26.58
Vested (in dollars per share) | $ / shares				25.96
Forfeited (in dollars per share) | $ / shares				34.34
Non-vested at end of year (in dollars per share) | $ / shares		$ 32.53		$ 32.53		$ 37.66
Shares granted				523,000
2011 Long Term Incentive Plan | Restricted shares | Employees
STOCK-BASED COMPENSATION
Fair value of shares granted | $				$ 13,900,000
Stock-based compensation expense | $		$ 3,600,000	$ 7,000,000	6,500,000	$ 13,600,000
Unrecognized compensation cost | $		$ 24,600,000		$ 24,600,000
Restricted Stock
Granted (in shares)				523,000
Weighted-Average Grant-Date Fair Value
Shares granted				523,000
2011 Long Term Incentive Plan | PSUs
Restricted Stock
Non-vested at beginning of year (in shares)	[1]			94,173
Granted (in shares)	[1]			144,363
Forfeited (in shares)	[1]			(1,467)
Non-vested at end of year (in shares)	[1]	237,069		237,069		94,173
Weighted-Average Grant-Date Fair Value
Non-vested at beginning of year (in dollars per share) | $ / shares	[1]			$ 37.55
Granted (in dollars per share) | $ / shares	[1]			33.44
Forfeited (in dollars per share) | $ / shares	[1]			34.80
Non-vested at end of year (in dollars per share) | $ / shares	[1]	$ 35.28		$ 35.28		$ 37.55
Vesting percent				66.67%
Percentage of awards earned during performance cycle				200.00%
Shares granted	[1]			144,363
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract]
Expected term of award				3 years		3 years
Expected volatility (as a percent)				65.00%
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)				144,363
Weighted-Average Grant-Date Fair Value
Measurement period				3 years
Shares granted				144,363
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 | $				$ 4,800,000
Stock-based compensation expense | $		$ 852,000	$ 392,000	1,300,000	$ 567,000
Unrecognized compensation cost | $		$ 6,600,000		$ 6,600,000
[1]	The number of awards assumes that the associated performance condition is met at the target amount. The final number of shares of the 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 (Detail

FAIR VALUE MEASUREMENTS (Details) - Derivative Contract [Domain] $ in Thousands		Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)
Financial assets and liabilities accounted for at fair value
Unproved properties		$ 198,098	$ 206,721
Proved properties		2,203,152	1,924,380
Asset retirement obligations		$ 22,264	21,464
Total number of counterparties in derivative financial instruments | item		4
Level 2
Financial assets and liabilities accounted for at fair value
Derivative assets	[1]	$ 66,729	104,005
Level 3
Financial assets and liabilities accounted for at fair value
Unproved properties	[2]	$ 197,700
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 estimates 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 (Deta35

FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Derivatives measured at fair value
Unproved oil and gas property impairments	$ 14,527	$ 19,996
Proved properties	2,203,152	2,203,152	$ 1,924,380
Unproved properties	198,098	198,098	206,721
Asset retirement obligations	22,264	22,264	21,464
Outstanding amount	850,006	850,006	840,619
Dorcheat Macedonia Field [Member]
Derivatives measured at fair value
Proved oil and gas property impairments			127,300
Proved properties			519,200
McKamie Patton Field [Member]
Derivatives measured at fair value
Proved oil and gas property impairments			25,000
Proved properties			41,000
McCallum Field [Member]
Derivatives measured at fair value
Proved oil and gas property impairments			15,300
Proved properties			15,300
Wattenberg Field Member
Derivatives measured at fair value
Unproved oil and gas property impairments		10,900
Unproved properties	208,600	208,600
North Park Basin Member
Derivatives measured at fair value
Unproved oil and gas property impairments		8,700
6.75% Senior Notes
Derivatives measured at fair value
Outstanding amount	500,000	500,000
Long term debt - gross	500,000	500,000	500,000
Long-term debt	$ 507,000	$ 507,000	$ 507,600
Interest rate (as a percent)	6.75%	6.75%	6.75%
5.75% Senior Notes
Derivatives measured at fair value
Outstanding amount	$ 300,000	$ 300,000
Long term debt - gross	$ 300,000	$ 300,000	$ 300,000
Interest rate (as a percent)	5.75%	5.75%	5.75%
Fair value of senior notes	$ 269,300	$ 269,300	$ 243,000
Fair Value
Derivatives measured at fair value
Proved properties	0	0
Unproved properties			0
Asset retirement obligations	0	0	6,200
Fair value of senior notes	475,000	475,000	440,000
Fair Value | Dorcheat Macedonia Field [Member]
Derivatives measured at fair value
Proved properties			391,900
Fair Value | McKamie Patton Field [Member]
Derivatives measured at fair value
Proved properties			16,000
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	$ 197,700	$ 197,700

DERIVATIVES (Details)

DERIVATIVES (Details) $ in Thousands	Jul. 27, 2015USD ($)bbl / dMMBTU / d$ / bbl$ / MMBTU	Jun. 30, 2015USD ($)bbl / dMMBTU / ditem$ / bbl$ / MMBTU	Dec. 31, 2014USD ($)
DERIVATIVES
Number of derivative instruments qualified for hedging instruments | item		0
Commodity derivative
Derivative contract
Fair Value of Asset (Liability)		$ 66,729	$ 104,005
Commodity derivative | Swap | Oil | 3Q 2015
Derivative contract
Total Volumes (in units per day) | bbl / d		6,000
Average Fixed Price | $ / bbl		72.16
Fair Value of Asset (Liability)		$ 6,754
Commodity derivative | Swap | Oil | 4Q 2015
Derivative contract
Fair Value of Asset (Liability)		$ 6,214
Commodity derivative | 2-Way Collar | Oil | 3Q 2015
Derivative contract
Total Volumes (in units per day) | bbl / d		6,500
Average Floor Price | $ / bbl		84.62
Average Ceiling Price | $ / bbl		95.49
Fair Value of Asset (Liability)		$ 14,254
Commodity derivative | 2-Way Collar | Oil | 4Q 2015
Derivative contract
Total Volumes (in units per day) | bbl / d		6,500
Fair Value of Asset (Liability)		$ 14,763
Commodity derivative | 3-Way Collar | Oil | 4Q 2015
Derivative contract
Total Volumes (in units per day) | bbl / d		5,500
Average Floor Price | $ / bbl		85
Average Ceiling Price | $ / bbl		96.83
Fair Value of Asset (Liability)		$ 23,483
Commodity derivative | 3-Way Collar | Oil | 1Q 2016
Derivative contract
Fair Value of Asset (Liability)		$ 65,468
Commodity derivative | 3-Way Collar | Oil | 2016
Derivative contract
Average Short Floor Price | $ / bbl		70
Commodity derivative | 3-Way Collar | Natural gas | 2Q 2015
Derivative contract
Fair Value of Asset (Liability)		$ 1,261
Commodity derivative | 3-Way Collar | Natural gas | 3Q - 4Q 2015
Derivative contract
Total Volumes (in units per day) | MMBTU / d		15,000
Average Short Floor Price | $ / MMBTU		3.50
Average Floor Price | $ / MMBTU		4
Average Ceiling Price | $ / MMBTU		4.75
Fair Value of Asset (Liability)		$ 1,261
Commodity derivative | Commodity derivative
Derivative contract
Fair Value of Asset (Liability)	$ 66,729
Commodity derivative | Commodity derivative | Oil
Derivative contract
Fair Value of Asset (Liability)	65,468
Commodity derivative | Commodity derivative | Natural gas
Derivative contract
Fair Value of Asset (Liability)	$ 1,261
Commodity derivative | Commodity derivative | Swap | Oil | 3Q 2015
Derivative contract
Total Volumes (in units per day) | bbl / d	6,000
Average Fixed Price | $ / bbl	72.16
Fair Value of Asset (Liability)	$ 6,754
Commodity derivative | Commodity derivative | Swap | Oil | 4Q 2015
Derivative contract
Total Volumes (in units per day) | bbl / d	6,000
Average Fixed Price | $ / bbl	72.16
Fair Value of Asset (Liability)	$ 6,214
Commodity derivative | Commodity derivative | 2-Way Collar | Oil | 3Q 2015
Derivative contract
Total Volumes (in units per day) | bbl / d	6,500
Average Floor Price | $ / bbl	84.62
Average Ceiling Price | $ / bbl	95.49
Fair Value of Asset (Liability)	$ 14,763
Commodity derivative | Commodity derivative | 2-Way Collar | Oil | 4Q 2015
Derivative contract
Total Volumes (in units per day) | bbl / d	6,500
Average Floor Price | $ / bbl	84.62
Average Ceiling Price | $ / bbl	95.49
Fair Value of Asset (Liability)	$ 14,254
Commodity derivative | Commodity derivative | 3-Way Collar | Oil | 2016
Derivative contract
Total Volumes (in units per day) | bbl / d	5,500
Average Short Floor Price | $ / bbl	70
Average Floor Price | $ / bbl	85
Average Ceiling Price | $ / bbl	96.83
Fair Value of Asset (Liability)	$ 23,483
Commodity derivative | Commodity derivative | 3-Way Collar | Natural gas | 3Q - 4Q 2015
Derivative contract
Total Volumes (in units per day) | MMBTU / d	15,000
Average Short Floor Price | $ / bbl	3.50
Average Floor Price | $ / MMBTU	4
Average Ceiling Price | $ / MMBTU	4.75
Fair Value of Asset (Liability)	$ 1,261

DERIVATIVES (Details 2)

DERIVATIVES (Details 2) - Commodity derivative - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Derivatives measured at fair value
Total derivative asset	$ 66,729	$ 104,005
Current assets
Derivatives measured at fair value
Derivative assets	55,419	86,240
Noncurrent assets
Derivatives measured at fair value
Derivative assets	$ 11,310	$ 17,765

DERIVATIVES (Details 3)

DERIVATIVES (Details 3) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Components of the derivative gain (loss)
Derivative gain (loss)		$ (5,478)	$ (27,307)	$ 13,378	$ (36,085)
Amount paid to convert three-way collars to two-way collars		10,500
Commodity derivative
Components of the derivative gain (loss)
Derivative cash settlement gain (loss)	[1]	15,189	(5,915)	50,655	(8,142)
Change in fair value gain (loss)		(20,667)	(21,392)	(37,277)	(27,943)
Derivative gain (loss)	[2]	(5,478)	(27,307)	13,378	(36,085)
Commodity derivative | Oil
Components of the derivative gain (loss)
Derivative cash settlement gain (loss)	[3]	14,507	(5,894)	49,298	(7,594)
Commodity derivative | Natural gas
Components of the derivative gain (loss)
Derivative cash settlement gain (loss)		$ 682	$ (21)	$ 1,357	$ (548)
[1]	Derivative cash settlement gain (loss) for the six months ended June 30, 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 used in investing activities.
[2]	Total derivative gain (loss) for the six months ended June 30, 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
[3]	During the three months ended June 30, 2015, the Company paid $10.5 million to convert its three-way collars, scheduled to settle during the third and fourth quarters of 2015, to two-way collars.

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - Relationship to Entity [Domain] $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)$ / sharesshares	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)$ / sharesshares
Income (loss) from continuing operations:
Income (loss) from continuing operations	$ (41,164)	$ 1,271	$ (59,586)	$ 10,848
Less: undistributed income (loss) to unvested restricted stock	(688)	23	(1,007)	205
Undistributed income (loss) to common shareholders	$ (40,476)	$ 1,248	$ (58,579)	$ 10,643
Basic income (loss) per common share from continuing operations (in dollars per share) | $ / shares	$ (0.83)	$ 0.03	$ (1.25)	$ 0.27
Diluted income (loss) per common share from continuing operations (in dollars per share) | $ / shares	$ (0.83)	$ 0.03	$ (1.25)	$ 0.27
Income (loss) from discontinued operations:
Income (loss) from discontinued operations		$ (113)		$ 3,841
Less: undistributed income to unvested restricted stock		2		73
Undistributed income (loss) to common shareholders		(111)		$ 3,768
Basic income per common share from discontinued operations (in dollars per share) | $ / shares				$ 0.09
Diluted income per common share from discontinued operations (in dollars per share) | $ / shares				$ 0.09
Net income (loss):
Net income (loss)	$ (41,164)	1,158	$ (59,586)	$ 14,689
Less: undistributed income (loss) to unvested restricted stock	(688)	21	(1,007)	277
Undistributed income (loss) to common shareholders	$ (40,476)	$ 1,137	$ (58,579)	$ 14,412
Basic net income (loss) per common share (in dollars per share) | $ / shares	$ (0.83)	$ 0.03	$ (1.25)	$ 0.36
Diluted net income (loss) per common share (in dollars per share) | $ / shares	$ (0.83)	$ 0.03	$ (1.25)	$ 0.36
Weighted-average shares outstanding - basic | shares	48,923,335	39,758,489	46,733,682	39,655,968
Add: dilutive effect of contingent PSUs | shares		98,539		124,227
Weighted-average shares outstanding - diluted | shares	48,923,335	39,857,028	46,733,682	39,780,195
Antidilutive shares | shares		0		0
Net loss position for potentially dilutive shares anti-dilutive | shares	80,906		106,644
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			2

CAPITAL STOCK (Details)

CAPITAL STOCK (Details) - USD ($) $ in Thousands	Feb. 06, 2015	Jun. 30, 2015
Net proceeds		$ 209,300
Underwriter discounts, commissions and offering expenses		$ 6,607
IPO [Member]
Shares of common stock sold in initial public offering	8,050,000
Net proceeds	$ 202,700
Underwriter discounts, commissions and offering expenses	$ 6,600

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reconciliation of effective tax rate to expected federal tax rate
Effective tax rate (as a percent)	37.80%	38.50%	38.00%	38.50%