Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 28, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Kosmos Energy Ltd. | ' |
Entity Central Index Key | '0001509991 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 387,559,187 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $440,267 | $515,164 |
Restricted cash | 19,377 | 21,341 |
Receivables: | ' | ' |
Joint interest billings | 71,591 | 21,539 |
Oil sales | 113,067 | 108,995 |
Other | 4,995 | 3,682 |
Inventories | 33,118 | 33,281 |
Prepaid expenses and other | 11,596 | 10,470 |
Current deferred tax assets | 14,515 | 34,585 |
Derivatives | 917 | 1,061 |
Total current assets | 709,443 | 750,118 |
Property and equipment: | ' | ' |
Oil and gas properties, net | 1,486,224 | 1,510,312 |
Other property, net | 15,490 | 15,450 |
Property and equipment, net | 1,501,714 | 1,525,762 |
Other assets: | ' | ' |
Restricted cash | 24,634 | 29,884 |
Deferred financing costs, net of accumulated amortization of $22,191 and $13,922 at September 30, 2013 and December 31, 2012, respectively | 42,897 | 50,214 |
Long-term deferred tax assets | 14,808 | 10,145 |
Derivatives | 1,583 | ' |
Total assets | 2,295,079 | 2,366,123 |
Current liabilities: | ' | ' |
Accounts payable | 98,818 | 128,855 |
Accrued liabilities | 115,866 | 41,021 |
Derivatives | 9,458 | 20,377 |
Total current liabilities | 224,142 | 190,253 |
Long-term liabilities: | ' | ' |
Long-term debt | 900,000 | 1,000,000 |
Derivatives | 1,335 | 3,226 |
Asset retirement obligations | 35,226 | 27,484 |
Deferred tax liability | 145,193 | 104,137 |
Other long-term liabilities | 18,886 | 12,117 |
Total long-term liabilities | 1,100,640 | 1,146,964 |
Shareholders' equity: | ' | ' |
Preference shares, $0.01 par value; 200,000,000 authorized shares; zero issued at September 30, 2013 and December 31, 2012 | ' | ' |
Common shares, $0.01 par value; 2,000,000,000 authorized shares; 391,956,419 and 391,423,703 issued at September 30, 2013 and December 31, 2012, respectively | 3,920 | 3,914 |
Additional paid-in capital | 1,763,227 | 1,712,880 |
Accumulated deficit | -778,386 | -683,176 |
Accumulated other comprehensive income | 2,563 | 3,685 |
Treasury stock, at cost, 4,397,232 and 2,731,941 shares at September 30, 2013 and December 31, 2012, respectively | -21,027 | -8,397 |
Total shareholders' equity | 970,297 | 1,028,906 |
Total liabilities and shareholders' equity | $2,295,079 | $2,366,123 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Deferred financing costs, accumulated amortization (in dollars) | $22,191 | $13,922 |
Preference shares, par value (in dollars per share) | $0.01 | $0.01 |
Preference shares, authorized shares | 200,000,000 | 200,000,000 |
Preference shares, issued shares | 0 | 0 |
Common shares, par value (in dollars per share) | $0.01 | $0.01 |
Common shares, authorized shares | 2,000,000,000 | 2,000,000,000 |
Common shares, issued shares | 391,956,419 | 391,423,703 |
Treasury stock, shares | 4,397,232 | 2,731,941 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues and other income: | ' | ' | ' | ' |
Oil and gas revenue | $215,169 | $222,375 | $636,648 | $450,360 |
Interest income | 77 | 137 | 191 | 1,165 |
Other income | 133 | 725 | 708 | 930 |
Total revenues and other income | 215,379 | 223,237 | 637,547 | 452,455 |
Costs and expenses: | ' | ' | ' | ' |
Oil and gas production | 32,576 | 44,873 | 79,651 | 71,791 |
Exploration expenses | 78,038 | 38,127 | 194,384 | 96,134 |
General and administrative | 35,646 | 39,898 | 118,787 | 112,558 |
Depletion and depreciation | 58,367 | 63,794 | 175,578 | 128,442 |
Amortization-deferred financing costs | 2,786 | 2,194 | 8,269 | 6,582 |
Interest expense | 8,781 | 20,213 | 27,789 | 43,717 |
Derivatives, net | 7,585 | 24,529 | 386 | 26,407 |
Other expenses, net | 1,864 | -64 | 3,345 | 728 |
Total costs and expenses | 225,643 | 233,564 | 608,189 | 486,359 |
Income (loss) before income taxes | -10,264 | -10,327 | 29,358 | -33,904 |
Income tax expense | 34,224 | 25,923 | 124,568 | 64,730 |
Net loss | ($44,488) | ($36,250) | ($95,210) | ($98,634) |
Net loss per share: | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.12) | ($0.10) | ($0.25) | ($0.27) |
Diluted (in dollars per share) | ($0.12) | ($0.10) | ($0.25) | ($0.27) |
Weighted average number of shares used to compute net loss per share: | ' | ' | ' | ' |
Basic (in shares) | 377,654 | 373,448 | 376,509 | 371,140 |
Diluted (in shares) | 377,654 | 373,448 | 376,509 | 371,140 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ' | ' | ' | ' |
Net loss | ($44,488) | ($36,250) | ($95,210) | ($98,634) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Reclassification adjustments for derivative (gains) losses included in net loss | -405 | -133 | -1,122 | 295 |
Other comprehensive income (loss) | -405 | -133 | -1,122 | 295 |
Comprehensive loss | ($44,893) | ($36,383) | ($96,332) | ($98,339) |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Shares | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Treasury Stock |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2012 | $1,028,906 | $3,914 | $1,712,880 | ($683,176) | $3,685 | ($8,397) |
Balance (in shares) at Dec. 31, 2012 | ' | 391,424 | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' |
Equity-based compensation | 50,792 | ' | 50,792 | ' | ' | ' |
Derivatives, net | -1,122 | ' | ' | ' | -1,122 | ' |
Restricted stock awards and units | ' | 6 | -6 | ' | ' | ' |
Restricted stock awards and units (in shares) | ' | 532 | ' | ' | ' | ' |
Restricted stock forfeitures | ' | ' | 6 | ' | ' | -6 |
Purchase of treasury stock | -13,069 | ' | -445 | ' | ' | -12,624 |
Net loss | -95,210 | ' | ' | -95,210 | ' | ' |
Balance at Sep. 30, 2013 | $970,297 | $3,920 | $1,763,227 | ($778,386) | $2,563 | ($21,027) |
Balance (in shares) at Sep. 30, 2013 | ' | 391,956 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ' | ' |
Net loss | ($95,210) | ($98,634) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depletion, depreciation and amortization | 183,847 | 135,024 |
Deferred income taxes | 62,757 | 51,867 |
Unsuccessful well costs | 98,912 | 19,357 |
Change in fair value of derivatives | 4,752 | 13,847 |
Cash settlements on derivatives | -18,658 | -18,755 |
Equity-based compensation | 50,792 | 58,215 |
Other | 4,468 | 7,739 |
Changes in assets and liabilities: | ' | ' |
(Increase) decrease in receivables | -56,725 | 89,102 |
Increase in inventories | -2,419 | -7,812 |
(Increase) decrease in prepaid expenses and other | -1,126 | 4,112 |
Decrease in accounts payable | -30,037 | -127,025 |
Increase in accrued liabilities | 79,996 | 23,073 |
Net cash provided by operating activities | 281,349 | 150,110 |
Investing activities | ' | ' |
Oil and gas assets | -244,452 | -272,681 |
Other property | -3,712 | -9,030 |
Restricted cash | 7,214 | -23,089 |
Net cash used in investing activities | -240,950 | -304,800 |
Financing activities | ' | ' |
Payment on long-term debt | -100,000 | -110,000 |
Purchase of treasury stock | -13,069 | -8,378 |
Deferred financing costs | -2,227 | -374 |
Net cash used in financing activities | -115,296 | -118,752 |
Net decrease in cash and cash equivalents | -74,897 | -273,442 |
Cash and cash equivalents at beginning of period | 515,164 | 673,092 |
Cash and cash equivalents at end of period | 440,267 | 399,650 |
Cash paid for: | ' | ' |
Interest | 27,046 | 30,247 |
Income taxes | $49,716 | $16,620 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2013 | |
Organization | ' |
Organization | ' |
1. Organization | |
Kosmos Energy Ltd. was incorporated pursuant to the laws of Bermuda in January 2011 to become a holding company for Kosmos Energy Holdings. Kosmos Energy Holdings is a privately held Cayman Islands company that was formed in March 2004. As a holding company, Kosmos Energy Ltd.’s management operations are conducted through a wholly owned subsidiary, Kosmos Energy, LLC. The terms “Kosmos,” the “Company,” “we,” “us,” “our,” “ours,” and similar terms refer to Kosmos Energy Ltd. and its wholly owned subsidiaries, unless the context indicates otherwise. | |
We are a leading independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margin. Our asset portfolio includes existing production and other major project developments offshore Ghana, as well as exploration licenses with significant hydrocarbon potential offshore Ireland, Mauritania, Morocco (including Western Sahara) and Suriname. Kosmos is listed on the New York Stock Exchange and is traded under the ticker symbol KOS. | |
We have one reportable segment, which is the exploration and production of oil and natural gas. Substantially all of our long-lived assets and product sales are currently related to production located offshore Ghana. | |
Accounting_Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies | ' |
Accounting Policies | ' |
2. Accounting Policies | |
General | |
The interim-period financial information presented in the consolidated financial statements included in this report is unaudited and, in the opinion of management, includes all adjustments of a normal recurring nature necessary to present fairly the consolidated financial position as of September 30, 2013, the changes in the consolidated statements of shareholders’ equity for the nine months ended September 30, 2013, the consolidated results of operations for the three and nine months ended September 30, 2013 and 2012, and consolidated cash flows for the nine months ended September 30, 2013 and 2012. The results of the interim periods shown in this report are not necessarily indicative of the final results to be expected for the full year. The consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by Generally Accepted Accounting Principles (“GAAP”) have been condensed or omitted from these interim consolidated financial statements. These consolidated financial statements and the accompanying notes should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2012, included in our annual report on Form 10-K. | |
Reclassifications | |
Certain prior period amounts have been reclassified to conform with the current year presentation. Such reclassifications had no impact on our reported net loss, current assets, total assets, current liabilities, total liabilities or shareholders’ equity. | |
Restricted Cash | |
In accordance with our commercial debt facility, we are required to maintain a restricted cash balance that is sufficient to meet the payment of interest and fees for the next six-month period. As of September 30, 2013 and December 31, 2012, we had $19.4 million and $21.3 million, respectively, in current restricted cash to meet this requirement. In addition, in accordance with certain of our petroleum contracts, we have posted letters of credit related to performance guarantees for our minimum work obligations. These letters of credit are cash collateralized in accounts held by us and as such are classified as restricted cash. Upon completion of the minimum work obligations and/or entering into the next phase of the petroleum contract, the requirement to post letters of credit will be satisfied and the cash collateral will be released. As of September 30, 2013 and December 31, 2012, we had $24.6 million and $29.9 million, respectively, of long-term restricted cash used to cash collateralize performance guarantees related to our petroleum contracts. | |
Inventories | |
Inventories consisted of $32.3 million and $33.1 million of materials and supplies and $0.8 million and $0.2 million of hydrocarbons as of September 30, 2013 and December 31, 2012, respectively. The Company’s materials and supplies inventory primarily consists of casing and wellheads and is stated at the lower of cost, using the weighted average cost method, or market. | |
Hydrocarbon inventory is carried at the lower of cost, using the weighted average cost method, or market. Hydrocarbon inventory costs include expenditures and other charges directly and indirectly incurred in bringing the inventory to its existing condition. Selling expenses and general and administrative expenses are reported as period costs and excluded from inventory costs. | |
Variable Interest Entity | |
Our wholly owned subsidiary, Kosmos Energy Finance International, is a variable interest entity (“VIE”). The Company is the primary beneficiary of this VIE, which is consolidated in these financial statements. | |
Kosmos Energy Finance International’s following assets and liabilities are shown separately on the face of the consolidated balance sheet as of September 30, 2013 and December 31, 2012: current restricted cash; long-term derivatives assets; long-term debt; and current and long-term derivatives liabilities. At September 30, 2013, Kosmos Energy Finance International had $36.9 million in cash and cash equivalents; $0.4 million in prepaid expenses and other; $0.9 million current derivative assets; $36.2 million deferred financing costs, net; $1.5 million in accrued liabilities and $7.6 million in other long-term liabilities, which are included in the amounts shown on the face of the consolidated balance sheet. At December 31, 2012, Kosmos Energy Finance International had $118.8 million in cash and cash equivalents; $0.2 million in prepaid expenses and other; $42.2 million deferred financing costs, net; $0.5 million in accrued liabilities and $6.6 million in other long-term liabilities, which are included in the amounts shown on the face of the consolidated balance sheet. | |
Property_and_Equipment
Property and Equipment | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property and Equipment | ' | |||||||
Property and Equipment | ' | |||||||
3. Property and Equipment | ||||||||
Property and equipment is stated at cost and consisted of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Oil and gas properties: | ||||||||
Proved properties | $ | 767,288 | $ | 682,276 | ||||
Unproved properties | 489,874 | 454,391 | ||||||
Support equipment and facilities | 712,415 | 687,835 | ||||||
Total oil and gas properties | 1,969,577 | 1,824,502 | ||||||
Less: accumulated depletion | (483,353 | ) | (314,190 | ) | ||||
Oil and gas properties, net | 1,486,224 | 1,510,312 | ||||||
Other property | 30,978 | 27,316 | ||||||
Less: accumulated depreciation | (15,488 | ) | (11,866 | ) | ||||
Other property, net | 15,490 | 15,450 | ||||||
Property and equipment, net | $ | 1,501,714 | $ | 1,525,762 | ||||
We recorded depletion expense of $56.1 million and $61.9 million for the three months ended September 30, 2013 and 2012, respectively and $169.2 million and $123.3 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||
Suspended_Well_Costs
Suspended Well Costs | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Suspended Well Costs | ' | |||||||
Suspended Well Costs | ' | |||||||
4. Suspended Well Costs | ||||||||
The following table reflects the Company’s capitalized exploratory well costs on completed wells as of and during the nine months ended September 30, 2013. The table excludes $69.8 million in costs that were capitalized and subsequently expensed during the same period. | ||||||||
Nine Months | ||||||||
Ended | ||||||||
September 30, | ||||||||
2013 | ||||||||
(In thousands) | ||||||||
Beginning balance | $ | 372,492 | ||||||
Additions to capitalized exploratory well costs pending the determination of proved reserves | 30,415 | |||||||
Reclassification due to determination of proved reserves | — | |||||||
Capitalized exploratory well costs charged to expense | (26,997 | ) | ||||||
Ending balance | $ | 375,910 | ||||||
The following table provides an aging of capitalized exploratory well costs based on the date drilling was completed and the number of projects for which exploratory well costs have been capitalized for more than one year since the completion of drilling: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(In thousands, except well counts) | ||||||||
Exploratory well costs capitalized for a period of one year or less | $ | 11,470 | $ | 106,635 | ||||
Exploratory well costs capitalized for a period one to two years | 228,842 | 179,933 | ||||||
Exploratory well costs capitalized for a period three to four years | 135,598 | 85,924 | ||||||
Ending balance | $ | 375,910 | $ | 372,492 | ||||
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year | 8 | 7 | ||||||
As of September 30, 2013, the projects with exploratory well costs capitalized for more than one year since the completion of drilling are related to the Mahogany, Teak-1, Teak-2 and Akasa discoveries in the West Cape Three Points (“WCTP”) Block and the Tweneboa, Enyenra, Ntomme and Wawa discoveries in the Deepwater Tano (“DT”) Block, which are all in Ghana. | ||||||||
Mahogany—Mahogany, a combined area covering parts of the Mahogany East discovery and the Mahogany Deep discovery, was declared commercial in September 2010, and a PoD was submitted to Ghana’s Ministry of Energy as of May 2, 2011. In a letter dated May 16, 2011, the Ministry of Energy did not approve the PoD and requested that the WCTP Block partners take certain steps regarding notifications of discovery and commerciality; and requested other information. The WCTP Block partners believe the combined submission was proper and have held meetings with Ghana National Petroleum Corporation (“GNPC”) which resolved issues relating to the PoD work program. From May 2011, the Ministry of Energy, GNPC and the WCTP Block partners continued working to resolve other differences; however, the WCTP Petroleum Agreement (“PA”) contains specific timelines for PoD approval and discussions, which expired at the end of June 2011. On June 30, 2011, we, as Operator of the WCTP Block and on behalf of the WCTP Block partners, delivered a Notice of Dispute to the Ministry of Energy and GNPC as provided under the WCTP PA, which is the initial step in triggering the formal dispute resolution process under the WCTP PA with the government of Ghana regarding approval of the Mahogany PoD. This Notice of Dispute establishes a process for negotiation and consultation for a period of 30 days (or longer if mutually agreed) among senior representatives from the Ministry of Energy, GNPC and the WCTP Block partners to resolve the matter. We and the WCTP Block partners are in discussions with the Ministry of Energy and GNPC to resolve differences on the PoD. | ||||||||
Teak-1 Discovery—Two appraisal wells have been drilled. Following additional appraisal and evaluation, a decision regarding commerciality of the Teak-1 discovery is expected to be made by the WCTP Block partners in 2014. Within six months of such a declaration, a PoD would be prepared and submitted to Ghana’s Ministry of Energy, as required under the WCTP PA. | ||||||||
Teak-2 Discovery—We have performed a gauge installation on the well and are reprocessing seismic data. Following additional appraisal and evaluation, a decision regarding commerciality of the Teak-2 discovery is expected to be made by the WCTP Block partners in 2014. Within six months of such a declaration, a PoD would be prepared and submitted to Ghana’s Ministry of Energy, as required under the WCTP PA. | ||||||||
Akasa Discovery—We have performed a drill stem test and gauge installation on the discovery well and are currently drilling the Akasa-2A appraisal well (see Note 13—Subsequent Events). Following additional appraisal and evaluation, a decision regarding commerciality of the Akasa discovery is expected to be made by the WCTP Block partners in 2014. Within six months of such a declaration, a PoD would be prepared and submitted to Ghana’s Ministry of Energy, as required under the WCTP PA. | ||||||||
Tweneboa, Enyenra and Ntomme (“TEN”) Discoveries—In May 2013, the government of Ghana approved the PoD over the TEN discoveries. Development of TEN will include the drilling and completion of up to 24 development wells, half of the wells are designed as producers and the remainder are for water and gas injection to support ultimate field recoveries. The TEN project is expected to deliver first oil in 2016. The costs associated with the TEN development will remain as unproved property pending the determination of whether the discoveries are associated with proved reserves. | ||||||||
Wawa Discovery—We are currently reprocessing seismic data and plan to acquire a high resolution seismic survey over the discovery area in 2014. Following additional evaluation and potential appraisal activities, a decision regarding commerciality of the Wawa discovery is expected to be made by the DT Block partners in 2014. Within six months of such declaration, a PoD would be prepared and submitted to Ghana’s Ministry of Energy, as required under the DT PA. | ||||||||
Accounts_Payable_and_Accrued_L
Accounts Payable and Accrued Liabilities | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accounts Payable and Accrued Liabilities | ' | |||||||
Accounts Payable and Accrued Liabilities | ' | |||||||
5. Accounts Payable and Accrued Liabilities | ||||||||
At September 30, 2013 and December 31, 2012, accounts payable of $98.8 million and $128.9 million, respectively, were recorded for invoices received but not paid. Accrued liabilities consisted of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Accrued liabilities: | ||||||||
Accrued exploration, development and production | $ | 65,561 | $ | 20,616 | ||||
Accrued general and administrative expenses | 14,896 | 5,089 | ||||||
Accrued taxes other than income | 15,667 | 11,124 | ||||||
Accrued derivative settlements | 1,465 | — | ||||||
Income taxes | 18,277 | 4,192 | ||||||
$ | 115,866 | $ | 41,021 |
Debt
Debt | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Debt | ' | |||||||||||||||||||
Debt | ' | |||||||||||||||||||
6. Debt | ||||||||||||||||||||
Facility | ||||||||||||||||||||
In March 2011, the Company secured a $2.0 billion commercial debt facility (the “Facility”) from a number of financial institutions and extinguished the then existing commercial debt facilities. The Facility was syndicated to certain participants of the existing facilities, as well as new participants. The Facility supports our oil and gas exploration, appraisal and development programs and corporate activities. As part of an amendment in November 2012, the total commitments for the Facility were reduced to $1.5 billion. | ||||||||||||||||||||
The Facility provides a revolving-credit and letter of credit facility. The availability period for the revolving-credit facility, as amended in April 2013, expires on December 15, 2014 and the letter of credit sublimit expires on the final maturity date. The available facility amount is subject to borrowing base constraints and, beginning on December 15, 2014, outstanding borrowings will also be constrained by an amortization schedule. The final maturity date is March 29, 2018. | ||||||||||||||||||||
In September 2013, as part of the normal borrowing base determination process, the availability under the facility was reduced by $89.6 million to $1.2 billion. As of September 30, 2013, borrowings under the Facility totaled $900.0 million, the undrawn availability under the Facility was $309.5 million, and there were no letters of credit drawn under the facility. | ||||||||||||||||||||
Corporate Revolver | ||||||||||||||||||||
In November 2012, we secured a revolving credit facility (the “Corporate Revolver”). In April 2013, the availability under the Corporate Revolver was increased from $260.0 million to $300.0 million due to additional commitments received from existing and new financial institutions. As of September 30, 2013, there were no borrowings outstanding under the Corporate Revolver and the undrawn availability under the Corporate Revolver was $300.0 million. | ||||||||||||||||||||
Revolving Letter of Credit Facility | ||||||||||||||||||||
In July 2013, we entered into a revolving letter of credit facility agreement (“LC Facility”). The size of the LC Facility is $100.0 million, with additional commitments up to $50.0 million being available if the existing lender increases its commitment or if commitments from new financial institutions are added. The LC Facility provides that we maintain cash collateral in an amount equal to at least 75% of all outstanding letters of credit under the LC Facility, provided that during the period of any breach of certain financial covenants, the required cash collateral amount shall increase to 100%. The fees associated with outstanding letters of credit issued will be 0.5% per annum. The LC Facility has an availability period which expires on June 1, 2016. We may voluntarily cancel any commitments available under the LC Facility at any time. As of September 30, 2013, there were four outstanding letters of credit totaling $29.0 million under the LC Facility. | ||||||||||||||||||||
At September 30, 2013, the estimated repayments of debt during the five fiscal year periods and thereafter are as follows: | ||||||||||||||||||||
Payments Due by Year | ||||||||||||||||||||
2013(1) | 2014 | 2015 | 2016 | 2017 | Thereafter | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Facility(2) | $ | — | $ | — | $ | 346,693 | $ | 149,428 | $ | 292,768 | $ | 111,111 | ||||||||
(1) Represents payments for the period October 1, 2013 through December 31, 2013. | ||||||||||||||||||||
(2) The scheduled maturities of debt are based on the level of borrowings and the available borrowing base as of | ||||||||||||||||||||
September 30, 2013. Any increases or decreases in the level of borrowings or decreases in the available borrowing base would impact the scheduled maturities of debt during the next five years and thereafter. | ||||||||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||
7. Derivative Financial Instruments | ||||||||||||||||||
We use financial derivative contracts to manage exposures to commodity price and interest rate fluctuations. We do not hold or issue derivative financial instruments for trading purposes. We manage market and counterparty credit risk in accordance with our policies and guidelines. In accordance with these policies and guidelines, our management determines the appropriate timing and extent of derivative transactions. | ||||||||||||||||||
Oil Derivative Contracts | ||||||||||||||||||
The following table sets forth the volumes in barrels underlying the Company’s outstanding oil derivative contracts and the weighted average Dated Brent prices per Bbl for those contracts as of September 30, 2013. | ||||||||||||||||||
Weighted Average Dated Brent Price per Bbl | ||||||||||||||||||
Term(1) | Type of Contract | MBbl | Deferred | Floor | Ceiling | Call | ||||||||||||
Premium | ||||||||||||||||||
Receivable/ | ||||||||||||||||||
(Payable) | ||||||||||||||||||
2013:00:00 | ||||||||||||||||||
October - December | Three-way collars | 375 | $ | (4.82 | ) | $ | 95 | $ | 105 | $ | 125 | |||||||
October - December | Three-way collars | 253 | — | 87.5 | 115 | 135 | ||||||||||||
October - December | Three-way collars | 250 | — | 90 | 115.39 | 135 | ||||||||||||
October - December | Three-way collars | 250 | — | 90.08 | 115 | 135 | ||||||||||||
2014:00:00 | ||||||||||||||||||
January - December | Three-way collars | 1,500 | (1.22 | ) | 85 | 115 | 140 | |||||||||||
January - December | Three-way collars | 1,000 | — | 85 | 115.01 | 140 | ||||||||||||
January - December | Three-way collars | 1,000 | — | 88.09 | 110 | 125 | ||||||||||||
January - December | Three-way collars | 1,500 | 1.15 | 90 | 113 | 135 | ||||||||||||
(1) In October 2013, we entered into put contracts for 1.7 MMBbl from January 2015 through December 2015 with a floor price of $85.00 per Bbl. The put contracts are indexed to Dated Brent prices and have a weighted average deferred premium payable of $3.78 per Bbl. | ||||||||||||||||||
Interest Rate Swaps Derivative Contracts | ||||||||||||||||||
The following table summarizes our open interest rate swaps as of September 30, 2013, whereby we pay a fixed rate of interest and the counterparty pays a variable LIBOR-based rate: | ||||||||||||||||||
Term | Weighted Average | Weighted Average | Floating Rate | |||||||||||||||
Notional Amount | Fixed Rate | |||||||||||||||||
(In thousands) | ||||||||||||||||||
October 2013 — December 2013 | $ | 200,617 | 1.99 | % | 6-month LIBOR | |||||||||||||
January 2014 — December 2014 | 133,434 | 1.99 | % | 6-month LIBOR | ||||||||||||||
January 2015 — December 2015 | 45,319 | 2.03 | % | 6-month LIBOR | ||||||||||||||
January 2016 — June 2016 | 12,500 | 2.27 | % | 6-month LIBOR | ||||||||||||||
The following tables disclose the Company’s derivative instruments as of September 30, 2013 and December 31, 2012 and gain/(loss) from derivatives during the three and nine months ended September 30, 2013 and 2012, respectively: | ||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||
Asset (Liability) | ||||||||||||||||||
September 30, | December 31, | |||||||||||||||||
Type of Contract | Balance Sheet Location | 2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Derivative assets: | ||||||||||||||||||
Commodity(1) | Derivatives assets—current | $ | 917 | $ | 1,061 | |||||||||||||
Commodity(2) | Derivatives assets—long-term | 1,583 | — | |||||||||||||||
Derivative liabilities: | ||||||||||||||||||
Commodity(3) | Derivatives liabilities—current | (6,284 | ) | (17,005 | ) | |||||||||||||
Interest rate | Derivatives liabilities—current | (3,174 | ) | (3,372 | ) | |||||||||||||
Commodity(4) | Derivatives liabilities—long-term | (319 | ) | (659 | ) | |||||||||||||
Interest rate | Derivatives liabilities—long-term | (1,016 | ) | (2,567 | ) | |||||||||||||
Total derivatives not designated as hedging instruments | $ | (8,293 | ) | $ | (22,542 | ) | ||||||||||||
(1) The commodity derivative asset represents $0.9 million of our oil derivative contracts as of September 30, 2013 and $1.1 million of our provisional oil sales contract as of December 31, 2012. Includes deferred premiums receivable of $1.1 million and zero related to commodity derivative contracts as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||
(2) Includes deferred premiums receivable of $0.6 million related to commodity derivative contracts as of September 30, 2013. | ||||||||||||||||||
(3) Includes zero and $3.4 million, as of September 30, 2013 and December 31, 2012, respectively of cash settlements made on our commodity derivative contracts which were settled in the month subsequent to period end. Also, includes deferred premiums payable of $3.0 million and $7.6 million related to commodity derivative contracts as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||
(4) Includes deferred premiums payable of $0.6 million and $2.4 million related to commodity derivative contracts as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||
Amount of Gain/(Loss) | Amount of Gain/(Loss) | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Type of Contract | Location of Gain/(Loss) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||
Interest rate(1) | Interest expense | $ | 405 | $ | 133 | $ | 1,122 | $ | (295 | ) | ||||||||
Total derivatives in cash flow hedging relationships | $ | 405 | $ | 133 | $ | 1,122 | $ | (295 | ) | |||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Commodity(2) | Oil and gas revenue | $ | (554 | ) | $ | 11,494 | $ | (5,220 | ) | $ | 15,221 | |||||||
Commodity | Derivatives, net | (7,585 | ) | (24,529 | ) | (386 | ) | (26,407 | ) | |||||||||
Interest rate | Interest expense | (318 | ) | (931 | ) | (268 | ) | (2,366 | ) | |||||||||
Total derivatives not designated as hedging instruments | $ | (8,457 | ) | $ | (13,966 | ) | $ | (5,874 | ) | $ | (13,552 | ) | ||||||
(1) Amounts were reclassified from AOCI into earnings upon settlement. | ||||||||||||||||||
(2) Amounts represent the mark-to-market portion of our provisional oil sales contracts. | ||||||||||||||||||
In accordance with the mark-to-market method of accounting, the Company recognizes changes in fair values of its derivative contracts as gains or losses in earnings during the period in which they occur. The fair value of the effective portion of the interest rate derivative contracts on May 31, 2010, is reflected in AOCI and is being transferred to interest expense over the remaining term of the contracts. The Company expects to reclassify $1.5 million of gains from AOCI to interest expense within the next 12 months. See Note 8—Fair Value Measurements for additional information regarding the Company’s derivative instruments. | ||||||||||||||||||
Offsetting of Derivative Assets and Derivative Liabilities | ||||||||||||||||||
Our derivative instruments subject to master netting arrangements with our counterparties only have the right of offset when there is an event of default. As of September 30, 2013 and December 31, 2012, there was not an event of default and, therefore, the associated gross asset or gross liability amounts related to these arrangements are presented on the consolidated balance sheets. Additionally, there were no material rights of offset available, if an event of default occurred, as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
8. Fair Value Measurements | ||||||||||||||
In accordance with ASC 820—Fair Value Measurements and Disclosures, fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. We prioritize the inputs used in measuring fair value into the following fair value hierarchy: | ||||||||||||||
· Level 1—quoted prices for identical assets or liabilities in active markets. | ||||||||||||||
· Level 2—quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data by correlation or other means. | ||||||||||||||
· Level 3—unobservable inputs for the asset or liability. The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety. | ||||||||||||||
The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, for each fair value hierarchy level: | ||||||||||||||
Fair Value Measurements Using: | ||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||
Identical Assets | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||
(In thousands) | ||||||||||||||
September 30, 2013 | ||||||||||||||
Assets: | ||||||||||||||
Commodity derivatives | $ | — | $ | 2,500 | $ | — | $ | 2,500 | ||||||
Liabilities: | ||||||||||||||
Commodity derivatives | — | (6,603 | ) | — | (6,603 | ) | ||||||||
Interest rate derivatives | — | (4,190 | ) | — | (4,190 | ) | ||||||||
Total | $ | — | $ | (8,293 | ) | $ | — | $ | (8,293 | ) | ||||
December 31, 2012 | ||||||||||||||
Assets: | ||||||||||||||
Commodity derivatives | $ | — | $ | 1,061 | $ | — | $ | 1,061 | ||||||
Liabilities: | ||||||||||||||
Commodity derivatives | — | (17,664 | ) | — | (17,664 | ) | ||||||||
Interest rate derivatives | — | (5,939 | ) | — | (5,939 | ) | ||||||||
Total | $ | — | $ | (22,542 | ) | $ | — | $ | (22,542 | ) | ||||
The book values of cash and cash equivalents and restricted cash approximate fair value based on Level 1 inputs. Joint interest billings, oil sales and other receivables, and accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The carrying values of our debt approximates fair value since they are subject to short-term floating interest rates that approximate the rates available to us for those periods. Our long-term receivables, if any, after any allowances for doubtful accounts approximate fair value. The estimates of fair value of these items are based on Level 2 inputs. | ||||||||||||||
Commodity Derivatives | ||||||||||||||
Our commodity derivatives represent crude oil three-way collars for notional barrels of oil at fixed Dated Brent oil prices. The values attributable to the our oil derivatives are based on (i) the contracted notional volumes, (ii) independent active futures price quotes for Dated Brent, (iii) a credit-adjusted yield curve applicable to each counterparty by reference to the CDS market and (iv) an independently sourced estimate of volatility for Dated Brent. The volatility estimate was provided by certain independent brokers who are active in buying and selling oil options and was corroborated by market-quoted volatility factors. The deferred premium is included in the fair market value of the puts and compound options. See Note 7—Derivative Financial Instruments for additional information regarding the Company’s derivative instruments. | ||||||||||||||
Provisional Oil Sales | ||||||||||||||
The value attributable to the provisional oil sales derivative is based on (i) the sales volumes subject to provisional pricing and (ii) an independently sourced forward curve over the term of the provisional pricing period. | ||||||||||||||
Interest Rate Derivatives | ||||||||||||||
We have interest rate swaps, whereby the Company pays a fixed rate of interest and the counterparty pays a variable LIBOR-based rate. The values attributable to the Company’s interest rate derivative contracts are based on (i) the contracted notional amounts, (ii) LIBOR yield curves provided by independent third parties and corroborated with forward active market-quoted LIBOR yield curves and (iii) a credit-adjusted yield curve as applicable to each counterparty by reference to the CDS market. | ||||||||||||||
Equitybased_Compensation
Equity-based Compensation | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Equity-based Compensation | ' | |||||||||||
Equity-based Compensation | ' | |||||||||||
9. Equity-based Compensation | ||||||||||||
Restricted Stock Awards and Restricted Stock Units | ||||||||||||
We record compensation expense equal to the fair value of share-based payments over the vesting periods of the Long-Term Incentive Plan (“LTIP”) awards. We recorded compensation expense from awards granted under our LTIP of $13.8 million and $19.4 million during the three months ended September 30, 2013 and 2012, respectively, and $50.8 million and $58.2 million during the nine months ended September 30, 2013 and 2012, respectively. The tax benefit resulting from equity-based compensation expense for the three months ended September 30, 2013 and 2012 was $4.8 million and $6.7 million, respectively, and for the nine months ended September 30, 2013 and 2012 was $17.4 million and $20.2 million, respectively. Additionally, we expensed a tax shortfall (the difference between the estimated tax deduction on the grant date and the actual tax deduction on the vest date) of $6.9 million and $7.4 million during the nine months ended September 30, 2013 and 2012, respectively. No shortfall occurred during the three months ended September 30, 2013 and 2012. | ||||||||||||
The following table reflects the outstanding restricted stock awards as of September 30, 2013: | ||||||||||||
Weighted- | Market / Service | Weighted- | ||||||||||
Service Vesting | Average | Vesting | Average | |||||||||
Restricted Stock | Grant-Date | Restricted Stock | Grant-Date | |||||||||
Awards | Fair Value | Awards | Fair Value | |||||||||
(In thousands) | (In thousands) | |||||||||||
Outstanding at December 31, 2012 | 9,898 | $ | 16.92 | 3,534 | $ | 12.93 | ||||||
Granted | 351 | 10.73 | — | — | ||||||||
Forfeited | (462 | ) | 16.51 | (93 | ) | 12.45 | ||||||
Vested | (3,358 | ) | 17.26 | — | — | |||||||
Outstanding at September 30, 2013 | 6,429 | 16.44 | 3,441 | 12.94 | ||||||||
The following table reflects the outstanding restricted stock units as of September 30, 2013: | ||||||||||||
Weighted- | Market / Service | Weighted- | ||||||||||
Service Vesting | Average | Vesting | Average | |||||||||
Restricted Stock | Grant-Date | Restricted Stock | Grant-Date | |||||||||
Units | Fair Value | Units | Fair Value | |||||||||
(In thousands) | (In thousands) | |||||||||||
Outstanding at December 31, 2012 | 1,023 | $ | 10.59 | 825 | $ | 15.81 | ||||||
Granted | 1,512 | 10.8 | 1,074 | 15.44 | ||||||||
Forfeited | (133 | ) | 10.53 | (73 | ) | 15.74 | ||||||
Vested | (225 | ) | 10.51 | — | — | |||||||
Outstanding at September 30, 2013 | 2,177 | 10.75 | 1,826 | 15.6 | ||||||||
As of September 30, 2013, total equity-based compensation to be recognized on unvested restricted stock awards and restricted stock units is $144.7 million over a weighted average period of 2.20 years. At September 30, 2013, the Company had approximately 5.5 million shares that remain available for issuance under the LTIP. | ||||||||||||
For restricted stock awards with a combination of market and service vesting criteria, the number of common shares to be issued is determined by comparing the Company’s total shareholder return with the total shareholder return of a predetermined group of peer companies over the performance period and can vest in up to 100% of the awards granted. The grant date fair value of these awards ranged from $6.70 to $13.57 per award. The Monte Carlo simulation model used to estimate the grant-date fair value utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. The expected volatility utilized in the model was estimated using our historical volatility and the historical volatilities of our peer companies and ranged from 41.3% to 56.7%. The risk-free interest rate was based on the U.S. treasury rate for a term commensurate with the expected life of the grant and ranged from 0.5% to 1.1%. | ||||||||||||
For restricted stock units with a combination of market and service vesting criteria, the number of common shares to be issued is determined by comparing the Company’s total shareholder return with the total shareholder return of a predetermined group of peer companies over the performance period and can vest in up to 200% of the awards granted. The grant date fair value of these awards ranged from $15.44 to $15.81 per award. The Monte Carlo simulation model used to estimate the grant-date fair value utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. The expected volatility utilized in the model was estimated using our historical volatility and the historical volatilities of our peer companies and ranged from 53.0% to 54.0%. The risk-free interest rate was based on the U.S. treasury rate for a term commensurate with the expected life of the grant and ranged from 0.5% to 0.7%. | ||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Income Taxes | ' | |||||||||||||
Income Taxes | ' | |||||||||||||
10. Income Taxes | ||||||||||||||
Income tax expense was $34.2 million and $25.9 million for the three months ended September 30, 2013 and 2012, respectively, and was $124.6 million and $64.7 million for the nine months ended September 30, 2013 and 2012, respectively. The income tax provision consists of U.S. and Ghanaian income and Texas margin taxes. | ||||||||||||||
The components of income (loss) before income taxes were as follows: | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||||
Bermuda | $ | (5,880 | ) | $ | (2,316 | ) | $ | (19,320 | ) | $ | (8,735 | ) | ||
United States | 2,740 | 3,145 | 8,014 | 9,492 | ||||||||||
Foreign—other | (7,124 | ) | (11,156 | ) | 40,664 | (34,661 | ) | |||||||
Income (loss) before income taxes | $ | (10,264 | ) | $ | (10,327 | ) | $ | 29,358 | $ | (33,904 | ) | |||
Our effective tax rate for the three months ended September 30, 2013 and 2012 is (333)% and (251)%, respectively. For the nine months ended, September 30, 2013 and 2012, our effective tax rate is 424% and (191)%. The effective tax rate for the United States is approximately 42% and 43% for the three months ended September 30, 2013 and 2012, respectively, and 125% and 116% for the nine months ended September 30, 2013 and 2012, respectively. The high effective tax rates in the United States are due to the effect of tax shortfalls related to equity-based compensation. The effective tax rate for Ghana is approximately 36% and 39% for the three months ended September 30, 2013 and 2012, respectively, and 36% and 37% for the nine months ended September 30, 2013 and 2012, respectively. Our other foreign jurisdictions have a 0% effective tax rate because they reside in countries with a 0% statutory rate, or we have experienced losses in those countries and have a full valuation allowance reserved against the corresponding net deferred tax assets. | ||||||||||||||
The Company has no material unrecognized income tax benefits. | ||||||||||||||
A subsidiary of the Company files a U.S. federal income tax return and a Texas margin tax return. In addition to the United States, the Company files income tax returns in the countries in which the Company operates. The Company is open to U.S. federal income tax examinations for tax years 2009 through 2012 and to Texas margin tax examinations for the tax years 2008 through 2012. In addition, the Company is open to income tax examinations for years 2004 through 2012 in Ghana. | ||||||||||||||
As of September 30, 2013, the Company had no material uncertain tax positions. The Company’s policy is to recognize potential interest and penalties related to income tax matters in income tax expense, but has not accrued any material amounts to date. | ||||||||||||||
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Net Income (Loss) Per Share | ' | |||||||||||||
Net Income (Loss) Per Share | ' | |||||||||||||
11. Net Income (Loss) Per Share | ||||||||||||||
The following table is a reconciliation between net income (loss) and the amounts used to compute basic and diluted net income (loss) per share and the weighted average shares outstanding used to compute basic and diluted net income (loss) per share: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Numerator: | ||||||||||||||
Net income (loss) | $ | (44,488 | ) | $ | (36,250 | ) | $ | (95,210 | ) | $ | (98,634 | ) | ||
Less: Basic income allocable to participating securities(1) | — | — | — | — | ||||||||||
Basic net income (loss) allocable to common shareholders | (44,488 | ) | (36,250 | ) | (95,210 | ) | (98,634 | ) | ||||||
Diluted adjustments to income allocable to participating securities(1) | — | — | — | — | ||||||||||
Diluted net income (loss) allocable to common shareholders | $ | (44,488 | ) | $ | (36,250 | ) | $ | (95,210 | ) | $ | (98,634 | ) | ||
Denominator: | ||||||||||||||
Weighted average number of shares used to compute net income (loss) per share: | ||||||||||||||
Basic | 377,654 | 373,448 | 376,509 | 371,140 | ||||||||||
Restricted stock awards and units(1)(2) | — | — | — | — | ||||||||||
Diluted | 377,654 | 373,448 | 376,509 | 371,140 | ||||||||||
Net income (loss) per share: | ||||||||||||||
Basic | $ | (0.12 | ) | $ | (0.10 | ) | $ | (0.25 | ) | $ | (0.27 | ) | ||
Diluted | $ | (0.12 | ) | $ | (0.10 | ) | $ | (0.25 | ) | $ | (0.27 | ) | ||
(1) Our service vesting restricted stock awards represent participating securities because they participate in nonforfeitable dividends with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Our restricted stock awards with market and service vesting criteria and all restricted stock units are not considered to be participating securities and, therefore, are excluded from the basic net income (loss) per common share calculation. Our service vesting restricted stock awards do not participate in undistributed net losses and, therefore, are excluded from the basic net income (loss) per common share calculation in periods we are in a net loss position. | ||||||||||||||
(2) We excluded outstanding restricted stock awards and units of 13.9 million and 17.1 million for the three months ended September 30, 2013 and 2012, respectively, and 13.9 million and 17.1 million for the nine months ended September 30, 2013 and 2012, respectively, from the computations of diluted net income per share because the effect would have been anti-dilutive. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||
12. Commitments and Contingencies | |||||||||||||||||||||||
We are involved in litigation, regulatory examinations and administrative proceedings primarily arising in the ordinary course of our business in jurisdictions in which we do business. Although the outcome of these matters cannot be predicted with certainty, management believes none of these matters, either individually or in the aggregate, would have a material effect upon the Company’s consolidated financial statements; however, an unfavorable outcome could have a material adverse effect on our results from operations for a specific interim period or year. | |||||||||||||||||||||||
In June 2013, we signed a long-term rig agreement with a subsidiary of Atwood Oceanics, Inc. for the new build drillship “Atwood Achiever.” Currently under construction, the rig is scheduled for completion in June 2014 and expected to commence drilling operations in the second half of 2014. The rig agreement covers an initial period of three years at a day rate of approximately $0.6 million, with an option to extend the agreement for an additional three-year term. | |||||||||||||||||||||||
The estimated future minimum commitments under this contract as of September 30, 2013, are: | |||||||||||||||||||||||
Payments Due By Year(1) | |||||||||||||||||||||||
Total | 2013(2) | 2014 | 2015 | 2016 | 2017 | Thereafter | |||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Atwood Achiever drilling rig contract (3) | $ | 651,525 | $ | — | $ | 90,440 | $ | 217,175 | $ | 217,770 | $ | 126,140 | $ | — | |||||||||
(1) Does not include purchase commitments for jointly owned fields and facilities where we are not the operator, excludes commitments for development activities under our petroleum contracts where we are not the operator and excludes commitments for exploration activities, including well commitments, in our petroleum contracts and farm-in agreements. | |||||||||||||||||||||||
(2) Represents payments for the period from October 1, 2013 through December 31, 2013. | |||||||||||||||||||||||
(3) Commitments calculated using a day rate of $595,000 and an estimated rig delivery date of August 1, 2014. | |||||||||||||||||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
13. Subsequent Events | |
In October 2013, we entered into three farm-out agreements with BP plc (“BP”) covering three blocks in the Agadir Basin, offshore Morocco. Under the terms of the agreements, BP will acquire a non-operating interest in each of the Essaouira Offshore, Foum Assaka Offshore and Tarhazoute Offshore blocks. BP will fund Kosmos’ share of the cost of one exploration well in each of the three blocks, subject to a maximum spend of $120.0 million per well, and pay its proportionate share of any well costs above the maximum spend. In the event a second exploration well is drilled in any block, BP will pay 150% of its share of costs subject to a maximum spend of $120.0 million per well. BP shall also pay $36.3 million for their share of past costs. Completion of the transactions is subject to customary closing conditions, including Moroccan Government approvals. After completing the transaction, our participating interests will be 30.0%, 29.925% and 30.0% in the Essaouira, Foum Assaka and Tarhazoute Offshore blocks, respectively, and we will remain the operator. | |
In October 2013, we entered into a farm-out agreement with Capricorn Exploration & Development Company Limited, a wholly owned subsidiary of Cairn Energy PLC (“Cairn”), covering the Cap Boujdour Contract Area, offshore Western Sahara. Under the terms of the agreement, Cairn will acquire a 20% non-operated interest in the exploration permits comprising the Cap Boujdour Contract Area. Cairn will pay 150% of its share of costs of a 3D seismic survey and one exploration well capped at $125.0 million. In the event the exploration well is successful, Cairn will pay 200% of its share of costs on two appraisal wells capped at $100.0 million per well. Additionally, Cairn will contribute $12.3 million towards our future costs. Completion of the transaction is subject to customary closing conditions, including Moroccan Government approvals. After completing the transaction, our participating interest in the Cap Boujdour Contract Area will be 55.0% and we will remain the operator. | |
Drilling of the Akasa-2A appraisal well on the WCTP Block was completed in October 2013. The Akasa-2A appraisal well did not encounter oil or gas reserves sufficient to be utilized as a producing well. Accounting rules require that the costs associated with the Akasa-2A appraisal well be impaired, which are $11.5 million and included in exploration expenses in the accompanying consolidated statement of operations. We estimate we will incur an additional $8.9 million of related well costs, which will be expensed as incurred. | |
Accounting_Policies_Policies
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies | ' |
General | ' |
General | |
The interim-period financial information presented in the consolidated financial statements included in this report is unaudited and, in the opinion of management, includes all adjustments of a normal recurring nature necessary to present fairly the consolidated financial position as of September 30, 2013, the changes in the consolidated statements of shareholders’ equity for the nine months ended September 30, 2013, the consolidated results of operations for the three and nine months ended September 30, 2013 and 2012, and consolidated cash flows for the nine months ended September 30, 2013 and 2012. The results of the interim periods shown in this report are not necessarily indicative of the final results to be expected for the full year. The consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by Generally Accepted Accounting Principles (“GAAP”) have been condensed or omitted from these interim consolidated financial statements. These consolidated financial statements and the accompanying notes should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2012, included in our annual report on Form 10-K. | |
Reclassifications | ' |
Reclassifications | |
Certain prior period amounts have been reclassified to conform with the current year presentation. Such reclassifications had no impact on our reported net loss, current assets, total assets, current liabilities, total liabilities or shareholders’ equity. | |
Restricted Cash | ' |
Restricted Cash | |
In accordance with our commercial debt facility, we are required to maintain a restricted cash balance that is sufficient to meet the payment of interest and fees for the next six-month period. As of September 30, 2013 and December 31, 2012, we had $19.4 million and $21.3 million, respectively, in current restricted cash to meet this requirement. In addition, in accordance with certain of our petroleum contracts, we have posted letters of credit related to performance guarantees for our minimum work obligations. These letters of credit are cash collateralized in accounts held by us and as such are classified as restricted cash. Upon completion of the minimum work obligations and/or entering into the next phase of the petroleum contract, the requirement to post letters of credit will be satisfied and the cash collateral will be released. As of September 30, 2013 and December 31, 2012, we had $24.6 million and $29.9 million, respectively, of long-term restricted cash used to cash collateralize performance guarantees related to our petroleum contracts. | |
Inventories | ' |
Inventories | |
Inventories consisted of $32.3 million and $33.1 million of materials and supplies and $0.8 million and $0.2 million of hydrocarbons as of September 30, 2013 and December 31, 2012, respectively. The Company’s materials and supplies inventory primarily consists of casing and wellheads and is stated at the lower of cost, using the weighted average cost method, or market. | |
Hydrocarbon inventory is carried at the lower of cost, using the weighted average cost method, or market. Hydrocarbon inventory costs include expenditures and other charges directly and indirectly incurred in bringing the inventory to its existing condition. Selling expenses and general and administrative expenses are reported as period costs and excluded from inventory costs. | |
Variable Interest Entity | ' |
Variable Interest Entity | |
Our wholly owned subsidiary, Kosmos Energy Finance International, is a variable interest entity (“VIE”). The Company is the primary beneficiary of this VIE, which is consolidated in these financial statements. | |
Kosmos Energy Finance International’s following assets and liabilities are shown separately on the face of the consolidated balance sheet as of September 30, 2013 and December 31, 2012: current restricted cash; long-term derivatives assets; long-term debt; and current and long-term derivatives liabilities. At September 30, 2013, Kosmos Energy Finance International had $36.9 million in cash and cash equivalents; $0.4 million in prepaid expenses and other; $0.9 million current derivative assets; $36.2 million deferred financing costs, net; $1.5 million in accrued liabilities and $7.6 million in other long-term liabilities, which are included in the amounts shown on the face of the consolidated balance sheet. At December 31, 2012, Kosmos Energy Finance International had $118.8 million in cash and cash equivalents; $0.2 million in prepaid expenses and other; $42.2 million deferred financing costs, net; $0.5 million in accrued liabilities and $6.6 million in other long-term liabilities, which are included in the amounts shown on the face of the consolidated balance sheet. | |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property and Equipment | ' | |||||||
Schedule of property and equipment | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Oil and gas properties: | ||||||||
Proved properties | $ | 767,288 | $ | 682,276 | ||||
Unproved properties | 489,874 | 454,391 | ||||||
Support equipment and facilities | 712,415 | 687,835 | ||||||
Total oil and gas properties | 1,969,577 | 1,824,502 | ||||||
Less: accumulated depletion | (483,353 | ) | (314,190 | ) | ||||
Oil and gas properties, net | 1,486,224 | 1,510,312 | ||||||
Other property | 30,978 | 27,316 | ||||||
Less: accumulated depreciation | (15,488 | ) | (11,866 | ) | ||||
Other property, net | 15,490 | 15,450 | ||||||
Property and equipment, net | $ | 1,501,714 | $ | 1,525,762 |
Suspended_Well_Costs_Tables
Suspended Well Costs (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Suspended Well Costs | ' | |||||||
Schedule of capitalized exploratory well costs | ' | |||||||
Nine Months | ||||||||
Ended | ||||||||
September 30, | ||||||||
2013 | ||||||||
(In thousands) | ||||||||
Beginning balance | $ | 372,492 | ||||||
Additions to capitalized exploratory well costs pending the determination of proved reserves | 30,415 | |||||||
Reclassification due to determination of proved reserves | — | |||||||
Capitalized exploratory well costs charged to expense | (26,997 | ) | ||||||
Ending balance | $ | 375,910 | ||||||
Schedule of aging of capitalized exploratory well costs and number of projects for which exploratory well costs were capitalized for more than one year | ' | |||||||
September 30, 2013 | December 31, 2012 | |||||||
(In thousands, except well counts) | ||||||||
Exploratory well costs capitalized for a period of one year or less | $ | 11,470 | $ | 106,635 | ||||
Exploratory well costs capitalized for a period one to two years | 228,842 | 179,933 | ||||||
Exploratory well costs capitalized for a period three to four years | 135,598 | 85,924 | ||||||
Ending balance | $ | 375,910 | $ | 372,492 | ||||
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year | 8 | 7 | ||||||
Accounts_Payable_and_Accrued_L1
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accounts Payable and Accrued Liabilities | ' | |||||||
Schedule of components of accrued liabilities | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Accrued liabilities: | ||||||||
Accrued exploration, development and production | $ | 65,561 | $ | 20,616 | ||||
Accrued general and administrative expenses | 14,896 | 5,089 | ||||||
Accrued taxes other than income | 15,667 | 11,124 | ||||||
Accrued derivative settlements | 1,465 | — | ||||||
Income taxes | 18,277 | 4,192 | ||||||
$ | 115,866 | $ | 41,021 |
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Debt | ' | |||||||||||||||||||
Schedule of estimated repayments of debt | ' | |||||||||||||||||||
Payments Due by Year | ||||||||||||||||||||
2013(1) | 2014 | 2015 | 2016 | 2017 | Thereafter | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Facility(2) | $ | — | $ | — | $ | 346,693 | $ | 149,428 | $ | 292,768 | $ | 111,111 | ||||||||
(1) Represents payments for the period October 1, 2013 through December 31, 2013. | ||||||||||||||||||||
(2) The scheduled maturities of debt are based on the level of borrowings and the available borrowing base as of | ||||||||||||||||||||
September 30, 2013. Any increases or decreases in the level of borrowings or decreases in the available borrowing base would impact the scheduled maturities of debt during the next five years and thereafter. | ||||||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||
Schedule of oil derivative contracts | ' | |||||||||||||||||
Weighted Average Dated Brent Price per Bbl | ||||||||||||||||||
Term(1) | Type of Contract | MBbl | Deferred | Floor | Ceiling | Call | ||||||||||||
Premium | ||||||||||||||||||
Receivable/ | ||||||||||||||||||
(Payable) | ||||||||||||||||||
2013:00:00 | ||||||||||||||||||
October - December | Three-way collars | 375 | $ | (4.82 | ) | $ | 95 | $ | 105 | $ | 125 | |||||||
October - December | Three-way collars | 253 | — | 87.5 | 115 | 135 | ||||||||||||
October - December | Three-way collars | 250 | — | 90 | 115.39 | 135 | ||||||||||||
October - December | Three-way collars | 250 | — | 90.08 | 115 | 135 | ||||||||||||
2014:00:00 | ||||||||||||||||||
January - December | Three-way collars | 1,500 | (1.22 | ) | 85 | 115 | 140 | |||||||||||
January - December | Three-way collars | 1,000 | — | 85 | 115.01 | 140 | ||||||||||||
January - December | Three-way collars | 1,000 | — | 88.09 | 110 | 125 | ||||||||||||
January - December | Three-way collars | 1,500 | 1.15 | 90 | 113 | 135 | ||||||||||||
(1) In October 2013, we entered into put contracts for 1.7 MMBbl from January 2015 through December 2015 with a floor price of $85.00 per Bbl. The put contracts are indexed to Dated Brent prices and have a weighted average deferred premium payable of $3.78 per Bbl. | ||||||||||||||||||
Schedule of interest rate swaps derivative contracts | ' | |||||||||||||||||
Term | Weighted Average | Weighted Average | Floating Rate | |||||||||||||||
Notional Amount | Fixed Rate | |||||||||||||||||
(In thousands) | ||||||||||||||||||
October 2013 — December 2013 | $ | 200,617 | 1.99 | % | 6-month LIBOR | |||||||||||||
January 2014 — December 2014 | 133,434 | 1.99 | % | 6-month LIBOR | ||||||||||||||
January 2015 — December 2015 | 45,319 | 2.03 | % | 6-month LIBOR | ||||||||||||||
January 2016 — June 2016 | 12,500 | 2.27 | % | 6-month LIBOR | ||||||||||||||
Schedule of derivative instruments by balance sheet location | ' | |||||||||||||||||
Estimated Fair Value | ||||||||||||||||||
Asset (Liability) | ||||||||||||||||||
September 30, | December 31, | |||||||||||||||||
Type of Contract | Balance Sheet Location | 2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Derivative assets: | ||||||||||||||||||
Commodity(1) | Derivatives assets—current | $ | 917 | $ | 1,061 | |||||||||||||
Commodity(2) | Derivatives assets—long-term | 1,583 | — | |||||||||||||||
Derivative liabilities: | ||||||||||||||||||
Commodity(3) | Derivatives liabilities—current | (6,284 | ) | (17,005 | ) | |||||||||||||
Interest rate | Derivatives liabilities—current | (3,174 | ) | (3,372 | ) | |||||||||||||
Commodity(4) | Derivatives liabilities—long-term | (319 | ) | (659 | ) | |||||||||||||
Interest rate | Derivatives liabilities—long-term | (1,016 | ) | (2,567 | ) | |||||||||||||
Total derivatives not designated as hedging instruments | $ | (8,293 | ) | $ | (22,542 | ) | ||||||||||||
(1) The commodity derivative asset represents $0.9 million of our oil derivative contracts as of September 30, 2013 and $1.1 million of our provisional oil sales contract as of December 31, 2012. Includes deferred premiums receivable of $1.1 million and zero related to commodity derivative contracts as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||
(2) Includes deferred premiums receivable of $0.6 million related to commodity derivative contracts as of September 30, 2013. | ||||||||||||||||||
(3) Includes zero and $3.4 million, as of September 30, 2013 and December 31, 2012, respectively of cash settlements made on our commodity derivative contracts which were settled in the month subsequent to period end. Also, includes deferred premiums payable of $3.0 million and $7.6 million related to commodity derivative contracts as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||
(4) Includes deferred premiums payable of $0.6 million and $2.4 million related to commodity derivative contracts as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||
Schedule of derivative instruments by location of gain/(loss) | ' | |||||||||||||||||
Amount of Gain/(Loss) | Amount of Gain/(Loss) | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Type of Contract | Location of Gain/(Loss) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||
Interest rate(1) | Interest expense | $ | 405 | $ | 133 | $ | 1,122 | $ | (295 | ) | ||||||||
Total derivatives in cash flow hedging relationships | $ | 405 | $ | 133 | $ | 1,122 | $ | (295 | ) | |||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Commodity(2) | Oil and gas revenue | $ | (554 | ) | $ | 11,494 | $ | (5,220 | ) | $ | 15,221 | |||||||
Commodity | Derivatives, net | (7,585 | ) | (24,529 | ) | (386 | ) | (26,407 | ) | |||||||||
Interest rate | Interest expense | (318 | ) | (931 | ) | (268 | ) | (2,366 | ) | |||||||||
Total derivatives not designated as hedging instruments | $ | (8,457 | ) | $ | (13,966 | ) | $ | (5,874 | ) | $ | (13,552 | ) | ||||||
(1) Amounts were reclassified from AOCI into earnings upon settlement. | ||||||||||||||||||
(2) Amounts represent the mark-to-market portion of our provisional oil sales contracts. | ||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Schedule of Company's assets and liabilities that are measured at fair value on a recurring basis | ' | |||||||||||||
Fair Value Measurements Using: | ||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||
Identical Assets | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||
(In thousands) | ||||||||||||||
September 30, 2013 | ||||||||||||||
Assets: | ||||||||||||||
Commodity derivatives | $ | — | $ | 2,500 | $ | — | $ | 2,500 | ||||||
Liabilities: | ||||||||||||||
Commodity derivatives | — | (6,603 | ) | — | (6,603 | ) | ||||||||
Interest rate derivatives | — | (4,190 | ) | — | (4,190 | ) | ||||||||
Total | $ | — | $ | (8,293 | ) | $ | — | $ | (8,293 | ) | ||||
December 31, 2012 | ||||||||||||||
Assets: | ||||||||||||||
Commodity derivatives | $ | — | $ | 1,061 | $ | — | $ | 1,061 | ||||||
Liabilities: | ||||||||||||||
Commodity derivatives | — | (17,664 | ) | — | (17,664 | ) | ||||||||
Interest rate derivatives | — | (5,939 | ) | — | (5,939 | ) | ||||||||
Total | $ | — | $ | (22,542 | ) | $ | — | $ | (22,542 | ) |
Equitybased_Compensation_Table
Equity-based Compensation (Tables) (LTIP) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Restricted stock awards | ' | |||||||||||
Equity-based Compensation | ' | |||||||||||
Schedule of plan activity | ' | |||||||||||
Weighted- | Market / Service | Weighted- | ||||||||||
Service Vesting | Average | Vesting | Average | |||||||||
Restricted Stock | Grant-Date | Restricted Stock | Grant-Date | |||||||||
Awards | Fair Value | Awards | Fair Value | |||||||||
(In thousands) | (In thousands) | |||||||||||
Outstanding at December 31, 2012 | 9,898 | $ | 16.92 | 3,534 | $ | 12.93 | ||||||
Granted | 351 | 10.73 | — | — | ||||||||
Forfeited | (462 | ) | 16.51 | (93 | ) | 12.45 | ||||||
Vested | (3,358 | ) | 17.26 | — | — | |||||||
Outstanding at September 30, 2013 | 6,429 | 16.44 | 3,441 | 12.94 | ||||||||
Restricted stock units | ' | |||||||||||
Equity-based Compensation | ' | |||||||||||
Schedule of plan activity | ' | |||||||||||
Weighted- | Market / Service | Weighted- | ||||||||||
Service Vesting | Average | Vesting | Average | |||||||||
Restricted Stock | Grant-Date | Restricted Stock | Grant-Date | |||||||||
Units | Fair Value | Units | Fair Value | |||||||||
(In thousands) | (In thousands) | |||||||||||
Outstanding at December 31, 2012 | 1,023 | $ | 10.59 | 825 | $ | 15.81 | ||||||
Granted | 1,512 | 10.8 | 1,074 | 15.44 | ||||||||
Forfeited | (133 | ) | 10.53 | (73 | ) | 15.74 | ||||||
Vested | (225 | ) | 10.51 | — | — | |||||||
Outstanding at September 30, 2013 | 2,177 | 10.75 | 1,826 | 15.6 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Income Taxes | ' | |||||||||||||
Schedule of components of income (loss) before income taxes | ' | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||||
Bermuda | $ | (5,880 | ) | $ | (2,316 | ) | $ | (19,320 | ) | $ | (8,735 | ) | ||
United States | 2,740 | 3,145 | 8,014 | 9,492 | ||||||||||
Foreign—other | (7,124 | ) | (11,156 | ) | 40,664 | (34,661 | ) | |||||||
Income (loss) before income taxes | $ | (10,264 | ) | $ | (10,327 | ) | $ | 29,358 | $ | (33,904 | ) |
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Net Income (Loss) Per Share | ' | |||||||||||||
Schedule of reconciliation between net income (loss) and the amounts used to compute basic and diluted net income (loss) per share and the weighted average shares outstanding used to compute basic and diluted net income (loss) per share | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Numerator: | ||||||||||||||
Net income (loss) | $ | (44,488 | ) | $ | (36,250 | ) | $ | (95,210 | ) | $ | (98,634 | ) | ||
Less: Basic income allocable to participating securities(1) | — | — | — | — | ||||||||||
Basic net income (loss) allocable to common shareholders | (44,488 | ) | (36,250 | ) | (95,210 | ) | (98,634 | ) | ||||||
Diluted adjustments to income allocable to participating securities(1) | — | — | — | — | ||||||||||
Diluted net income (loss) allocable to common shareholders | $ | (44,488 | ) | $ | (36,250 | ) | $ | (95,210 | ) | $ | (98,634 | ) | ||
Denominator: | ||||||||||||||
Weighted average number of shares used to compute net income (loss) per share: | ||||||||||||||
Basic | 377,654 | 373,448 | 376,509 | 371,140 | ||||||||||
Restricted stock awards and units(1)(2) | — | — | — | — | ||||||||||
Diluted | 377,654 | 373,448 | 376,509 | 371,140 | ||||||||||
Net income (loss) per share: | ||||||||||||||
Basic | $ | (0.12 | ) | $ | (0.10 | ) | $ | (0.25 | ) | $ | (0.27 | ) | ||
Diluted | $ | (0.12 | ) | $ | (0.10 | ) | $ | (0.25 | ) | $ | (0.27 | ) | ||
(1) Our service vesting restricted stock awards represent participating securities because they participate in nonforfeitable dividends with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Our restricted stock awards with market and service vesting criteria and all restricted stock units are not considered to be participating securities and, therefore, are excluded from the basic net income (loss) per common share calculation. Our service vesting restricted stock awards do not participate in undistributed net losses and, therefore, are excluded from the basic net income (loss) per common share calculation in periods we are in a net loss position. | ||||||||||||||
(2) We excluded outstanding restricted stock awards and units of 13.9 million and 17.1 million for the three months ended September 30, 2013 and 2012, respectively, and 13.9 million and 17.1 million for the nine months ended September 30, 2013 and 2012, respectively, from the computations of diluted net income per share because the effect would have been anti-dilutive. | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||
Schedule of estimated future minimum commitments | ' | ||||||||||||||||||||||
Payments Due By Year(1) | |||||||||||||||||||||||
Total | 2013(2) | 2014 | 2015 | 2016 | 2017 | Thereafter | |||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Atwood Achiever drilling rig contract (3) | $ | 651,525 | $ | — | $ | 90,440 | $ | 217,175 | $ | 217,770 | $ | 126,140 | $ | — | |||||||||
(1) Does not include purchase commitments for jointly owned fields and facilities where we are not the operator, excludes commitments for development activities under our petroleum contracts where we are not the operator and excludes commitments for exploration activities, including well commitments, in our petroleum contracts and farm-in agreements. | |||||||||||||||||||||||
(2) Represents payments for the period from October 1, 2013 through December 31, 2013. | |||||||||||||||||||||||
(3) Commitments calculated using a day rate of $595,000 and an estimated rig delivery date of August 1, 2014. | |||||||||||||||||||||||
Organization_Details
Organization (Details) | 9 Months Ended |
Sep. 30, 2013 | |
segment | |
Organization | ' |
Number of reportable segments | 1 |
Accounting_Policies_Details
Accounting Policies (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Restricted Cash | ' | ' |
Current restricted cash | $19,377,000 | $21,341,000 |
Long-term restricted cash | 24,634,000 | 29,884,000 |
Inventories | ' | ' |
Materials and supplies inventory | 32,300,000 | 33,100,000 |
Hydrocarbons inventory | 800,000 | 200,000 |
Restricted Cash | Commercial Debt Facility | ' | ' |
Restricted Cash | ' | ' |
Restricted cash period required as per commercial debt facility to meet interest and commitment fee payments | '6 months | ' |
Current restricted cash | 19,400,000 | 21,300,000 |
Restricted Cash | Petroleum agreements - performance guarantees | ' | ' |
Restricted Cash | ' | ' |
Long-term restricted cash | $24,600,000 | $29,900,000 |
Accounting_Policies_Details_2
Accounting Policies (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Variable interest entity | ' | ' | ' | ' |
Cash and cash equivalents | $440,267 | $515,164 | $399,650 | $673,092 |
Prepaid expenses and other | 11,596 | 10,470 | ' | ' |
Current derivative assets | 917 | 1,061 | ' | ' |
Deferred financing costs, net | 42,897 | 50,214 | ' | ' |
Accrued liabilities | 115,866 | 41,021 | ' | ' |
Other long-term liabilities | 18,886 | 12,117 | ' | ' |
Kosmos Energy Finance International | ' | ' | ' | ' |
Variable interest entity | ' | ' | ' | ' |
Cash and cash equivalents | 36,900 | 118,800 | ' | ' |
Prepaid expenses and other | 400 | 200 | ' | ' |
Current derivative assets | 900 | ' | ' | ' |
Deferred financing costs, net | 36,200 | 42,200 | ' | ' |
Accrued liabilities | 1,500 | 500 | ' | ' |
Other long-term liabilities | $7,600 | $6,600 | ' | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Oil and gas properties: | ' | ' | ' | ' | ' |
Proved properties | $767,288,000 | ' | $767,288,000 | ' | $682,276,000 |
Unproved properties | 489,874,000 | ' | 489,874,000 | ' | 454,391,000 |
Support equipment and facilities | 712,415,000 | ' | 712,415,000 | ' | 687,835,000 |
Total oil and gas properties | 1,969,577,000 | ' | 1,969,577,000 | ' | 1,824,502,000 |
Less: accumulated depletion | -483,353,000 | ' | -483,353,000 | ' | -314,190,000 |
Oil and gas properties, net | 1,486,224,000 | ' | 1,486,224,000 | ' | 1,510,312,000 |
Other property | 30,978,000 | ' | 30,978,000 | ' | 27,316,000 |
Less: accumulated depreciation | -15,488,000 | ' | -15,488,000 | ' | -11,866,000 |
Other property, net | 15,490,000 | ' | 15,490,000 | ' | 15,450,000 |
Property and equipment, net | 1,501,714,000 | ' | 1,501,714,000 | ' | 1,525,762,000 |
Depletion expense | $56,100,000 | $61,900,000 | $169,200,000 | $123,300,000 | ' |
Suspended_Well_Costs_Details
Suspended Well Costs (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
project | project | |
Suspended Well Costs | ' | ' |
Capitalized exploratory well costs subsequently expensed in the same period | $69,800,000 | ' |
Reconciliation of capitalized exploratory well costs on completed wells | ' | ' |
Balance at the beginning of the period | 372,492,000 | ' |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 30,415,000 | ' |
Capitalized exploratory well costs charged to expense | -26,997,000 | ' |
Balance at the end of the period | 375,910,000 | ' |
Aging of capitalized exploratory well costs and number of projects for which exploratory well costs were capitalized for more than one year | ' | ' |
Exploratory well costs capitalized for a period of one year or less | 11,470,000 | 106,635,000 |
Exploratory well costs capitalized for a period one to two years | 228,842,000 | 179,933,000 |
Exploratory well costs capitalized for a period three to four years | 135,598,000 | 85,924,000 |
Ending balance | $375,910,000 | ' |
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year | 8 | 7 |
Mahogany East Area | Minimum | ' | ' |
Projects with exploratory well costs capitalized for more than one year | ' | ' |
Period of negotiation and consultation of notice of dispute issued to Ministry of Energy by the entity | '30 days | ' |
Teak-1 Discovery | ' | ' |
Projects with exploratory well costs capitalized for more than one year | ' | ' |
Number of appraisal wells which were drilled | 2 | ' |
Teak-1 Discovery | Maximum | ' | ' |
Projects with exploratory well costs capitalized for more than one year | ' | ' |
Submission of PoD to Ghana's Ministry of Energy, period | '6 months | ' |
Teak-2 Discovery | Maximum | ' | ' |
Projects with exploratory well costs capitalized for more than one year | ' | ' |
Submission of PoD to Ghana's Ministry of Energy, period | '6 months | ' |
Akasa Discovery | Maximum | ' | ' |
Projects with exploratory well costs capitalized for more than one year | ' | ' |
Submission of PoD to Ghana's Ministry of Energy, period | '6 months | ' |
TEN Discoveries | Forecast | ' | ' |
Projects with exploratory well costs capitalized for more than one year | ' | ' |
Portion of wells designed as producers (as a percent) | 50.00% | ' |
Portion of wells for water and gas injection (as a percent) | 50.00% | ' |
TEN Discoveries | Maximum | Forecast | ' | ' |
Projects with exploratory well costs capitalized for more than one year | ' | ' |
Number of wells developed | 24 | ' |
Wawa Discovery | Maximum | ' | ' |
Projects with exploratory well costs capitalized for more than one year | ' | ' |
Submission of PoD to Ghana's Ministry of Energy, period | '6 months | ' |
Accounts_Payable_and_Accrued_L2
Accounts Payable and Accrued Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Payable and Accrued Liabilities | ' | ' |
Accounts payable | $98,818 | $128,855 |
Accrued liabilities: | ' | ' |
Accrued exploration, development and production | 65,561 | 20,616 |
Accrued general and administrative expenses | 14,896 | 5,089 |
Accrued taxes other than income | 15,667 | 11,124 |
Accrued derivative settlements | 1,465 | ' |
Income taxes | 18,277 | 4,192 |
Accrued liabilities | $115,866 | $41,021 |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2013 | Nov. 30, 2012 | Mar. 31, 2011 | Sep. 30, 2013 | Apr. 30, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | Sep. 30, 2013 | Jul. 31, 2013 |
Facility | Facility | Facility | Corporate Revolver | Corporate Revolver | Corporate Revolver | Revolving Letter of Credit Facility | Revolving Letter of Credit Facility | Revolving Letter of Credit Facility | |
item | Minimum | ||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available amount under facility | ' | $1,500,000,000 | $2,000,000,000 | ' | $300,000,000 | $260,000,000 | $100,000,000 | ' | ' |
Reduction in undrawn availability | 89,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Current borrowing capacity | 1,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding | 900,000,000 | ' | ' | 0 | ' | ' | ' | 29,000,000 | ' |
Undrawn availability | 309,500,000 | ' | ' | 300,000,000 | ' | ' | ' | ' | ' |
Letters of credit drawn | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Scheduled maturities of debt during the five year period and thereafter | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 346,693,000 | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 149,428,000 | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 292,768,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 111,111,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional commitments | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | ' |
Cash collateral maintained as a percentage of outstanding letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% |
Cash collateral required as a percentage of outstanding letters of credit under breach of certain financial covenants | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Letter of credit fee (as a percent) | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' |
Number of letters of credit | ' | ' | ' | ' | ' | ' | ' | 4 | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2013 |
Three-way Collars | Three-way Collars | Three-way collars | Three-way collars | Three-way collars | Three-way collars | Three-way collars | Three-way collars | Put contracts | |
Term October 2013 to December 2013 | Term January 2014 to December 2014 | Term October 2013 to December 2013 | Term January 2014 to December 2014 | Term October 2013 to December 2013 | Term January 2014 to December 2014 | Term October 2013 to December 2013 | Term January 2014 to December 2014 | Term January 2015 to December 2015 | |
MBbls | MBbls | MBbls | MBbls | MBbls | MBbls | MBbls | MBbls | MBbls | |
Derivative Financial Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volumes (in MBbl) | 375 | 1,500 | 253 | 1,000 | 250 | 1,000 | 250 | 1,500 | 1,700 |
Weighted average deferred premium receivable/(payable) per Bbl | -4.82 | -1.22 | ' | 1.15 | ' | 1.15 | ' | 1.15 | -3.78 |
Weighted average floor price per Bbl | 95 | 85 | 87.5 | 85 | 90 | 88.09 | 90.08 | 90 | 85 |
Weighted average ceiling price per Bbl | 105 | 115 | 115 | 115.01 | 115.39 | 110 | 115 | 113 | ' |
Weighted average call price per Bbl | 125 | 140 | 135 | 140 | 135 | 125 | 135 | 135 | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (Interest Rate Swaps, USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Term October 2013 to December 2013 | ' |
Derivative Financial Instruments | ' |
Weighted Average Notional Amount | $200,617 |
Weighted Average Fixed Rate (as a percent) | 1.99% |
Floating Rate | '6-month LIBOR |
Term January 2014 to December 2014 | ' |
Derivative Financial Instruments | ' |
Weighted Average Notional Amount | 133,434 |
Weighted Average Fixed Rate (as a percent) | 1.99% |
Floating Rate | '6-month LIBOR |
Term January 2015 to December 2015 | ' |
Derivative Financial Instruments | ' |
Weighted Average Notional Amount | 45,319 |
Weighted Average Fixed Rate (as a percent) | 2.03% |
Floating Rate | '6-month LIBOR |
Term January 2016 to June 2016 | ' |
Derivative Financial Instruments | ' |
Weighted Average Notional Amount | $12,500 |
Weighted Average Fixed Rate (as a percent) | 2.27% |
Floating Rate | '6-month LIBOR |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Derivative instruments, Balance Sheet Location | ' | ' |
Derivatives assets - current | $917,000 | $1,061,000 |
Derivatives assets-long-term | 1,583,000 | ' |
Derivatives liabilities - current | -9,458,000 | -20,377,000 |
Derivatives liabilities - long-term | -1,335,000 | -3,226,000 |
Not designated as hedging instruments | ' | ' |
Derivative instruments, Balance Sheet Location | ' | ' |
Total | -8,293,000 | -22,542,000 |
Commodity derivatives | Not designated as hedging instruments | ' | ' |
Derivative instruments, Balance Sheet Location | ' | ' |
Derivatives assets - current | 917,000 | 1,061,000 |
Derivatives assets-long-term | 1,583,000 | ' |
Derivatives liabilities - current | -6,284,000 | -17,005,000 |
Derivatives liabilities - long-term | -319,000 | -659,000 |
Deferred premiums receivable related to commodity derivative contracts | 1,100,000 | 0 |
Deferred premiums receivable related to commodity derivative contracts | 600,000 | ' |
Cash settlements made on commodity derivative contracts which were settled in the month subsequent to period end | 0 | 3,400,000 |
Deferred premiums payable related to commodity derivative contracts | 3,000,000 | 7,600,000 |
Deferred premiums payable related to commodity derivative contracts | 600,000 | 2,400,000 |
Oil derivative contracts | ' | ' |
Derivative instruments, Balance Sheet Location | ' | ' |
Derivatives assets - current | 900,000 | ' |
Provisional Oil Sales | ' | ' |
Derivative instruments, Balance Sheet Location | ' | ' |
Derivatives assets - current | ' | 1,100,000 |
Interest rate contracts | Not designated as hedging instruments | ' | ' |
Derivative instruments, Balance Sheet Location | ' | ' |
Derivatives liabilities - current | -3,174,000 | -3,372,000 |
Derivatives liabilities - long-term | ($1,016,000) | ($2,567,000) |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Derivative instruments, Location of Gain/(Loss) | ' | ' | ' | ' |
Amount of Gain/(Loss), derivatives not designated as hedging instruments | ($8,457,000) | ($13,966,000) | ($5,874,000) | ($13,552,000) |
Gains expected to be reclassified from AOCI to interest expense | ' | ' | 1,500,000 | ' |
Commodity derivatives | Derivatives, net | ' | ' | ' | ' |
Derivative instruments, Location of Gain/(Loss) | ' | ' | ' | ' |
Amount of Gain/(Loss), derivatives not designated as hedging instruments | -7,585,000 | -24,529,000 | -386,000 | -26,407,000 |
Commodity derivatives | Oil and gas revenue | ' | ' | ' | ' |
Derivative instruments, Location of Gain/(Loss) | ' | ' | ' | ' |
Amount of Gain/(Loss), derivatives not designated as hedging instruments | -554,000 | 11,494,000 | -5,220,000 | 15,221,000 |
Interest rate contracts | Interest expense | ' | ' | ' | ' |
Derivative instruments, Location of Gain/(Loss) | ' | ' | ' | ' |
Amount of Gain/(Loss), derivatives not designated as hedging instruments | -318,000 | -931,000 | -268,000 | -2,366,000 |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Derivative instruments, Location of Gain/(Loss) | ' | ' | ' | ' |
Total derivatives in cash flow hedging relationships | 405,000 | 133,000 | 1,122,000 | -295,000 |
Derivatives in cash flow hedging relationships | Interest rate contracts | Interest expense | ' | ' | ' | ' |
Derivative instruments, Location of Gain/(Loss) | ' | ' | ' | ' |
Amount of Gain/(Loss) reclassified from AOCI into earnings | $405,000 | $133,000 | $1,122,000 | ($295,000) |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Recurring basis, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Level 2 | ' | ' |
Liabilities: | ' | ' |
Total fair value, net | ($8,293) | ($22,542) |
Level 2 | Commodity derivatives | ' | ' |
Assets: | ' | ' |
Derivative asset, fair value | 2,500 | 1,061 |
Liabilities: | ' | ' |
Derivative liability, fair value | -6,603 | -17,664 |
Level 2 | Interest rate derivatives | ' | ' |
Liabilities: | ' | ' |
Derivative liability, fair value | -4,190 | -5,939 |
Total | ' | ' |
Liabilities: | ' | ' |
Total fair value, net | -8,293 | -22,542 |
Total | Commodity derivatives | ' | ' |
Assets: | ' | ' |
Derivative asset, fair value | 2,500 | 1,061 |
Liabilities: | ' | ' |
Derivative liability, fair value | -6,603 | -17,664 |
Total | Interest rate derivatives | ' | ' |
Liabilities: | ' | ' |
Derivative liability, fair value | ($4,190) | ($5,939) |
Equitybased_Compensation_Detai
Equity-based Compensation (Details) (LTIP, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Compensation agreement | ' | ' | ' | ' |
Compensation expense recognized | $13.80 | $19.40 | $50.80 | $58.20 |
Tax benefit | 4.8 | 6.7 | 17.4 | 20.2 |
Tax shortfall | 0 | 0 | 6.9 | 7.4 |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Compensation expense not yet recognized | $144.70 | ' | $144.70 | ' |
Weighted average period over which compensation expense is to be recognized | ' | ' | '2 years 2 months 12 days | ' |
Number of shares remaining available for grant | 5,500,000 | ' | 5,500,000 | ' |
Service Vesting Restricted Stock Awards | ' | ' | ' | ' |
Outstanding unvested awards activity | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | 9,898,000 | ' |
Granted (in shares) | ' | ' | 351,000 | ' |
Forfeited (in shares) | ' | ' | -462,000 | ' |
Vested (in shares) | ' | ' | -3,358,000 | ' |
Outstanding at the end of the period (in shares) | 6,429,000 | ' | 6,429,000 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Outstanding at beginning of the period (in dollars per share) | ' | ' | $16.92 | ' |
Granted (in dollars per share) | ' | ' | $10.73 | ' |
Forfeited (in dollars per share) | ' | ' | $16.51 | ' |
Vested (in dollars per share) | ' | ' | $17.26 | ' |
Outstanding at the end of the period (in dollars per share) | $16.44 | ' | $16.44 | ' |
Market/Service Vesting Restricted Stock Awards | ' | ' | ' | ' |
Outstanding unvested awards activity | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | 3,534,000 | ' |
Forfeited (in shares) | ' | ' | -93,000 | ' |
Outstanding at the end of the period (in shares) | 3,441,000 | ' | 3,441,000 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Outstanding at beginning of the period (in dollars per share) | ' | ' | $12.93 | ' |
Forfeited (in dollars per share) | ' | ' | $12.45 | ' |
Outstanding at the end of the period (in dollars per share) | $12.94 | ' | $12.94 | ' |
Market/Service Vesting Restricted Stock Awards | Minimum | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $6.70 | ' |
Significant assumptions used to calculate fair values | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | 41.30% | ' |
Risk-free interest rate (as a percent) | ' | ' | 0.50% | ' |
Market/Service Vesting Restricted Stock Awards | Maximum | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $13.57 | ' |
Significant assumptions used to calculate fair values | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | 56.70% | ' |
Risk-free interest rate (as a percent) | ' | ' | 1.10% | ' |
Other disclosures | ' | ' | ' | ' |
Vesting percentage of the awards granted | ' | ' | 100.00% | ' |
Service Vesting Restricted Stock Units | ' | ' | ' | ' |
Outstanding unvested awards activity | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | 1,023,000 | ' |
Granted (in shares) | ' | ' | 1,512,000 | ' |
Forfeited (in shares) | ' | ' | -133,000 | ' |
Vested (in shares) | ' | ' | -225,000 | ' |
Outstanding at the end of the period (in shares) | 2,177,000 | ' | 2,177,000 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Outstanding at beginning of the period (in dollars per share) | ' | ' | $10.59 | ' |
Granted (in dollars per share) | ' | ' | $10.80 | ' |
Forfeited (in dollars per share) | ' | ' | $10.53 | ' |
Vested (in dollars per share) | ' | ' | $10.51 | ' |
Outstanding at the end of the period (in dollars per share) | $10.75 | ' | $10.75 | ' |
Market/Service Vesting Restricted Stock Units | ' | ' | ' | ' |
Outstanding unvested awards activity | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | 825,000 | ' |
Granted (in shares) | ' | ' | 1,074,000 | ' |
Forfeited (in shares) | ' | ' | -73,000 | ' |
Outstanding at the end of the period (in shares) | 1,826,000 | ' | 1,826,000 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Outstanding at beginning of the period (in dollars per share) | ' | ' | $15.81 | ' |
Granted (in dollars per share) | ' | ' | $15.44 | ' |
Forfeited (in dollars per share) | ' | ' | $15.74 | ' |
Outstanding at the end of the period (in dollars per share) | $15.60 | ' | $15.60 | ' |
Market/Service Vesting Restricted Stock Units | Minimum | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $15.44 | ' |
Significant assumptions used to calculate fair values | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | 53.00% | ' |
Risk-free interest rate (as a percent) | ' | ' | 0.50% | ' |
Market/Service Vesting Restricted Stock Units | Maximum | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $15.81 | ' |
Significant assumptions used to calculate fair values | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | 54.00% | ' |
Risk-free interest rate (as a percent) | ' | ' | 0.70% | ' |
Other disclosures | ' | ' | ' | ' |
Vesting percentage of the awards granted | ' | ' | 200.00% | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Taxes | ' | ' | ' | ' |
Income tax expense | $34,224 | $25,923 | $124,568 | $64,730 |
Income (loss) before income taxes | -10,264 | -10,327 | 29,358 | -33,904 |
Effective tax rate (as a percent) | -333.00% | -251.00% | 424.00% | -191.00% |
Bermuda | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' |
Income (loss) before income taxes | -5,880 | -2,316 | -19,320 | -8,735 |
United States | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' |
Income (loss) before income taxes | 2,740 | 3,145 | 8,014 | 9,492 |
Effective tax rate (as a percent) | 42.00% | 43.00% | 125.00% | 116.00% |
Foreign-other | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' |
Income (loss) before income taxes | ($7,124) | ($11,156) | $40,664 | ($34,661) |
Effective tax rate (as a percent) | ' | ' | 0.00% | ' |
Statutory rate (as a percent) | ' | ' | 0.00% | ' |
Ghana | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' |
Effective tax rate (as a percent) | 36.00% | 39.00% | 36.00% | 37.00% |
Net_Income_Loss_Per_Share_Deta
Net Income (Loss) Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ' | ' | ' | ' |
Net income (loss) | ($44,488) | ($36,250) | ($95,210) | ($98,634) |
Basic net income (loss) allocable to common shareholders | -44,488 | -36,250 | -95,210 | -98,634 |
Diluted net income (loss) allocable to common shareholders | ($44,488) | ($36,250) | ($95,210) | ($98,634) |
Weighted average number of shares used to compute net income (loss) per share: | ' | ' | ' | ' |
Basic (in shares) | 377,654,000 | 373,448,000 | 376,509,000 | 371,140,000 |
Diluted (in shares) | 377,654,000 | 373,448,000 | 376,509,000 | 371,140,000 |
Net income (loss) per share: | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.12) | ($0.10) | ($0.25) | ($0.27) |
Diluted (in dollars per share) | ($0.12) | ($0.10) | ($0.25) | ($0.27) |
Outstanding restricted stock awards and restricted stock units excluded from the computations of diluted net income (loss) per share (in shares) | 13,900,000 | 17,100,000 | 13,900,000 | 17,100,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 9 Months Ended |
Jun. 30, 2013 | Sep. 30, 2013 | |
Offshore drilling rig contract commitments | ' | ' |
Drilling rig contract period | '3 years | ' |
Initial rig rate per day | $600,000 | ' |
Optional extension period | '3 years | ' |
Estimated future minimum commitments under Atwood Achiever drilling rig contract | ' | ' |
2014 | ' | 90,440,000 |
2015 | ' | 217,175,000 |
2016 | ' | 217,770,000 |
2017 | ' | 126,140,000 |
Total | ' | 651,525,000 |
Rig rate per day | ' | $595,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 9 Months Ended | 1 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | |
Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | |||
WCTP Block | Farm-out agreements | Farm-out agreements | Farm-out agreements | Farm-out agreements | BP | BP | Cairn | Cairn | |||
Akasa Discovery | Essaouira Offshore Block | Foum Assaka Offshore Block | Tarhazoute Offshore Block | Cap Boujdour Contact Area | Farm-out agreements | Farm-out agreements | Farm-out agreements | Farm-out agreements | |||
Essaouira Offshore, Foum Assaka Offshore and Tarhazoute Offshore blocks | Essaouira Offshore, Foum Assaka Offshore and Tarhazoute Offshore blocks | Cap Boujdour Contact Area | Cap Boujdour Contact Area | ||||||||
item | Maximum | item | Maximum | ||||||||
Subsequent events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of farm-out agreements | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
Number of blocks covered by farm-out agreements | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
Number of exploration wells in each block for which our share of costs will be paid for by a third party | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' |
Number of exploration wells for which a third party will pay a disproportionate amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Spending per well by third party for first exploration well | ' | ' | ' | ' | ' | ' | ' | ' | $120,000,000 | ' | ' |
Spending by third party for seismic and an exploration well | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 |
Percentage of third party's share of drilling costs to be paid in the event of drilling a second exploration well in each block | ' | ' | ' | ' | ' | ' | ' | 150.00% | ' | ' | ' |
Spending per well by third party in the event of drilling a second exploration well | ' | ' | ' | ' | ' | ' | ' | ' | 120,000,000 | ' | ' |
Amount of past costs to be paid by third party | ' | ' | ' | ' | ' | ' | ' | 36,300,000 | ' | ' | ' |
Participating interests (as a percent) | ' | ' | ' | 30.00% | 29.93% | 30.00% | 55.00% | ' | ' | ' | ' |
Participation interest acquired (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' |
Percentage of third party's share of seismic and drilling costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150.00% | ' |
Percentage of third party's share of drilling costs for two appraisal wells | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | ' |
Number of appraisal wells for which a third party will pay a disproportionate amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Spending per well by third party for each appraisal well | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 |
Amount of our future costs to be paid for by third party | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,300,000 | ' |
Impaired costs associated with the Akasa-2A appraisal well | 98,912,000 | 19,357,000 | 11,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated additional related well costs | ' | ' | $8,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |