Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 23, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35167 | ||
Entity Registrant Name | Kosmos Energy Ltd. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 98-0686001 | ||
Entity Address, Address Line One | 8176 Park Lane | ||
Entity Address, City or Town | Dallas, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75231 | ||
City Area Code | 214 | ||
Local Phone Number | 445 9600 | ||
Title of 12(b) Security | Common Stock $0.01 par value | ||
Trading Symbol | KOS | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,764,469,395 | ||
Entity Common Stock, Shares Outstanding | 459,584,934 | ||
Documents Incorporated by Reference | Part III, Items 10‑14, is incorporated by reference from the Proxy Statement for the Annual Meeting of Shareholders which will be filed with the Securities and Exchange Commission not later than 120 days subsequent to December 31, 2022. Certain exhibits previously filed with the Securities and Exchange Commission are incorporated by reference into Part IV of this report. | ||
Entity Central Index Key | 0001509991 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Dallas, Texas |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 183,405 | $ 131,620 |
Restricted cash | 0 | 42,971 |
Receivables: | ||
Joint interest billings, net | 28,851 | 36,908 |
Oil sales | 67,483 | 134,004 |
Other | 23,401 | 6,614 |
Inventories | 133,515 | 165,247 |
Prepaid expenses and other | 24,722 | 18,899 |
Derivatives | 7,344 | 5,689 |
Total current assets | 468,721 | 541,952 |
Property and equipment: | ||
Oil and gas properties, net | 3,837,437 | 4,177,323 |
Other property, net | 5,210 | 6,664 |
Property and equipment, net | 3,842,647 | 4,183,987 |
Other assets: | ||
Restricted cash | 3,416 | 305 |
Long-term receivables | 235,696 | 191,150 |
Deferred financing costs, net of accumulated amortization of $13,263 and $19,912 at December 31, 2022 and December 31, 2021, respectively | 4,640 | 1,090 |
Derivatives | 1,725 | 1,026 |
Other | 23,143 | 21,141 |
Total assets | 4,579,988 | 4,940,651 |
Current liabilities: | ||
Accounts payable | 212,275 | 184,403 |
Accrued liabilities | 325,206 | 250,670 |
Current maturities of long-term debt | 30,000 | 30,000 |
Derivatives | 6,773 | 65,879 |
Total current liabilities | 574,254 | 530,952 |
Long-term liabilities: | ||
Long-term debt, net | 2,195,911 | 2,590,495 |
Derivatives | 778 | 6,298 |
Asset retirement obligations | 300,800 | 322,237 |
Deferred tax liabilities | 468,445 | 711,038 |
Other long-term liabilities | 251,952 | 250,394 |
Total long-term liabilities | 3,217,886 | 3,880,462 |
Stockholders’ equity: | ||
Preference shares, $0.01 par value; 200,000,000 authorized shares; zero issued at December 31, 2022 and December 31, 2021 | 0 | 0 |
Common stock, $0.01 par value; 2,000,000,000 authorized shares; 500,161,421 and 496,152,331 issued at December 31, 2022 and December 31, 2021, respectively | 5,002 | 4,962 |
Additional paid-in capital | 2,505,694 | 2,473,674 |
Accumulated deficit | (1,485,841) | (1,712,392) |
Treasury stock, at cost, 44,263,269 shares at December 31, 2022 and December 31, 2021, respectively | (237,007) | (237,007) |
Total stockholders’ equity | 787,848 | 529,237 |
Total liabilities and stockholders’ equity | $ 4,579,988 | $ 4,940,651 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Deferred financing costs, accumulated amortization | $ 13,263 | $ 19,912 |
Preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preference shares, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Preference shares, issued shares (in shares) | 0 | 0 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized shares (in shares) | 2,000,000,000 | 2,000,000,000 |
Common shares, issued shares (in shares) | 500,161,421 | 496,152,331 |
Treasury stock shares (in shares) | 44,263,269 | 44,263,269 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues and other income: | |||||
Oil and gas revenue | $ 2,245,355,000 | $ 1,332,013,000 | $ 804,033,000 | ||
Gain on sale of assets | 50,471,000 | 1,564,000 | 92,163,000 | ||
Other income, net | 3,949,000 | 262,000 | 2,000 | ||
Total revenues and other income | 2,299,775,000 | 1,333,839,000 | 896,198,000 | ||
Costs and expenses: | |||||
Oil and gas production | 403,056,000 | 346,006,000 | 338,477,000 | ||
Facilities insurance modifications, net | 6,243,000 | (1,586,000) | 13,161,000 | ||
Exploration expenses | 134,230,000 | 65,382,000 | 84,616,000 | ||
General and administrative | 100,856,000 | 91,529,000 | 72,142,000 | ||
Depletion, depreciation and amortization | 498,256,000 | 467,221,000 | 485,862,000 | ||
Impairment of long-lived assets | $ 3,200,000 | $ 150,800,000 | 449,969,000 | 0 | 153,959,000 |
Interest and other financing costs, net | 118,260,000 | 128,371,000 | 109,794,000 | ||
Derivatives, net | 260,892,000 | 270,185,000 | 17,180,000 | ||
Other expenses, net | (9,054,000) | 10,111,000 | 37,802,000 | ||
Total costs and expenses | 1,962,708,000 | 1,377,219,000 | 1,312,993,000 | ||
Income (loss) before income taxes | 337,067,000 | (43,380,000) | (416,795,000) | ||
Income tax expense (benefit) | 110,516,000 | 34,456,000 | (5,209,000) | ||
Net income (loss) | $ 226,551,000 | $ (77,836,000) | $ (411,586,000) | ||
Net income (loss) per share: | |||||
Basic (in dollars per share) | $ 0.50 | $ (0.19) | $ (1.02) | ||
Diluted (in dollars per share) | $ 0.48 | $ (0.19) | $ (1.02) | ||
Weighted average number of shares used to compute net income (loss) per share: | |||||
Basic (in shares) | 455,346 | 416,943 | 405,212 | ||
Diluted (in shares) | 474,857 | 416,943 | 405,212 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock |
Balance (in shares) at Dec. 31, 2019 | 445,779 | ||||
Balance at Dec. 31, 2019 | $ 841,702 | $ 4,458 | $ 2,297,221 | $ (1,222,970) | $ (237,007) |
Increase (Decrease) in Shareholders' Equity | |||||
Dividends | (18,576) | (18,576) | |||
Equity-based compensation | 33,561 | 33,561 | |||
Restricted stock units (in shares) | 3,939 | ||||
Restricted stock units | 0 | $ 39 | (39) | ||
Tax withholdings on restricted stock units | (4,947) | (4,947) | |||
Net income (loss) | (411,586) | (411,586) | |||
Balance (in shares) at Dec. 31, 2020 | 449,718 | ||||
Balance at Dec. 31, 2020 | 440,154 | $ 4,497 | 2,307,220 | (1,634,556) | (237,007) |
Increase (Decrease) in Shareholders' Equity | |||||
Public offering of common stock (in shares) | 43,125 | ||||
Public offering of common stock | 136,006 | $ 432 | 135,574 | ||
Dividends | 227 | 227 | |||
Equity-based compensation | 31,786 | 31,786 | |||
Restricted stock units (in shares) | 3,309 | ||||
Restricted stock units | 0 | $ 33 | (33) | ||
Tax withholdings on restricted stock units | (1,100) | (1,100) | |||
Net income (loss) | (77,836) | (77,836) | |||
Balance (in shares) at Dec. 31, 2021 | 496,152 | ||||
Balance at Dec. 31, 2021 | 529,237 | $ 4,962 | 2,473,674 | (1,712,392) | (237,007) |
Increase (Decrease) in Shareholders' Equity | |||||
Dividends | (39) | (39) | |||
Equity-based compensation | 34,852 | 34,852 | |||
Restricted stock units (in shares) | 4,009 | ||||
Restricted stock units | 0 | $ 40 | (40) | ||
Tax withholdings on restricted stock units | (2,753) | (2,753) | |||
Net income (loss) | 226,551 | 226,551 | |||
Balance (in shares) at Dec. 31, 2022 | 500,161 | ||||
Balance at Dec. 31, 2022 | $ 787,848 | $ 5,002 | $ 2,505,694 | $ (1,485,841) | $ (237,007) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income (loss) | $ 226,551,000 | $ (77,836,000) | $ (411,586,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depletion, depreciation and amortization (including deferred financing costs) | 508,657,000 | 477,801,000 | 495,209,000 |
Deferred income taxes | (197,487,000) | (69,174,000) | (42,587,000) |
Unsuccessful well costs and leasehold impairments | 86,941,000 | 18,819,000 | 23,157,000 |
Impairment of long-lived assets | 449,969,000 | 0 | 153,959,000 |
Change in fair value of derivatives | 275,465,000 | 277,705,000 | 22,800,000 |
Cash settlements on derivatives, net (including $(327.9) million and $(224.4) million and $(2.7) million on commodity hedges during 2022, 2021, and 2020) | (344,468,000) | (231,767,000) | (10,944,000) |
Equity-based compensation | 34,546,000 | 31,651,000 | 32,706,000 |
Gain on sale of assets | (50,471,000) | (1,564,000) | (92,163,000) |
Loss on extinguishment of debt | 192,000 | 19,625,000 | 2,902,000 |
Other | (10,099,000) | (3,538,000) | 15,922,000 |
Changes in assets and liabilities: | |||
(Increase) decrease in receivables | 68,829,000 | (34,246,000) | 92,093,000 |
(Increase) decrease in inventories | 10,335,000 | (14,581,000) | (23,167,000) |
(Increase) decrease in prepaid expenses and other | (11,039,000) | 15,218,000 | 7,882,000 |
Increase (decrease) in accounts payable | 3,724,000 | (33,359,000) | 71,947,000 |
Increase (decrease) in accrued liabilities | 78,831,000 | (410,000) | (141,985,000) |
Net cash provided by operating activities | 1,130,476,000 | 374,344,000 | 196,145,000 |
Investing activities | |||
Oil and gas assets | (787,297,000) | (472,631,000) | (379,593,000) |
Acquisition of oil and gas properties | (22,078,000) | (465,367,000) | 0 |
Proceeds on sale of assets | 168,703,000 | 6,354,000 | 99,118,000 |
Notes receivable from partners | (63,183,000) | (41,733,000) | (65,112,000) |
Net cash used in investing activities | (703,855,000) | (973,377,000) | (345,587,000) |
Financing activities | |||
Borrowings under long-term debt | 0 | 725,000,000 | 300,000,000 |
Payments on long-term debt | (405,000,000) | (1,050,000,000) | (250,000,000) |
Advances under production prepayment agreement | 0 | 0 | 50,000,000 |
Net proceeds from issuance of senior notes | 0 | 839,375,000 | 0 |
Net proceeds from issuance of common stock | 0 | 136,006,000 | 0 |
Tax withholdings on restricted stock units | (2,753,000) | (1,100,000) | (4,947,000) |
Dividends | (655,000) | (512,000) | (19,271,000) |
Deferred financing costs | (6,288,000) | (24,604,000) | (5,922,000) |
Net cash provided by (used in) financing activities | (414,696,000) | 624,165,000 | 69,860,000 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 11,925,000 | 25,132,000 | (79,582,000) |
Cash, cash equivalents and restricted cash at beginning of period | 186,821,000 | 174,896,000 | 149,764,000 |
Cash, cash equivalents and restricted cash at end of period | 174,896,000 | 149,764,000 | 229,346,000 |
Cash paid for: | |||
Interest, net of capitalized interest | 85,791,000 | 91,032,000 | 103,674,000 |
Income taxes, net of refund received | 247,889,000 | 137,421,000 | 104,061,000 |
Non-cash activity: | |||
Production Prepayment Agreement converted to GoM Term Loan | $ 0 | $ 0 | $ 50,000,000 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | |||
Cash settlements on commodity hedges derivatives | $ (327.9) | $ (224.4) | $ (2.7) |
Organization
Organization | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Kosmos Energy Ltd. changed our jurisdiction of incorporation from Bermuda to the State of Delaware in December 2018 as a holding company for Kosmos Energy Delaware Holdings, LLC, a Delaware limited liability company. 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. Kosmos is a full-cycle, deepwater, independent oil and gas exploration and production company focused along the offshore Atlantic Margins. Our key assets include production offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, as well as world-class gas projects offshore Mauritania and Senegal. We also pursue a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos is listed on the NYSE and LSE and is traded under the ticker symbol KOS. Kosmos is engaged in a single line of business, which is the exploration, development, and production of oil and natural gas. Substantially all of our long-lived assets and all of our product sales are related to operations in four geographic areas: Ghana, Equatorial Guinea, Mauritania/Senegal and the U.S. Gulf of Mexico. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of Kosmos Energy Ltd. and its wholly-owned subsidiaries. They also include the Company’s share of the undivided interest in certain assets, liabilities, revenues and expenses. Investments in corporate joint ventures, which we exercise significant influence over, are accounted for using the equity method of accounting. All intercompany transactions have been eliminated. Investments in companies that are partially owned by the Company are integral to the Company’s operations. The other parties, who also have an equity interest in these companies, are independent third parties that share in the business results according to their ownership. Kosmos does not invest in these companies in order to remove liabilities from its balance sheet. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These estimates could change materially if different information or assumptions were used. We base our assumptions and estimates on historical experience and other sources that we believe to be reasonable at the time. Actual results could differ from these estimates. Reclassifications Certain prior period amounts have been reclassified to conform with the current year presentation. Such reclassifications had no significant impact on our reported net income (loss), current assets, total assets, current liabilities, total liabilities, shareholders’ equity or cash flows. Cash, Cash Equivalents and Restricted Cash December 31, 2022 2021 2020 (In thousands) Cash and cash equivalents $ 183,405 $ 131,620 $ 149,027 Restricted cash - current — 42,971 195 Restricted cash - long-term 3,416 305 542 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 186,821 $ 174,896 $ 149,764 Cash and cash equivalents includes demand deposits and funds invested in highly liquid instruments with original maturities of three months or less at the date of purchase. When our net leverage ratio exceeds 2.50x, we are required under the Facility to maintain a restricted cash balance that is sufficient to meet the payment of interest and fees for the next six-month period on the 7.125% Senior Notes, the 7.750% Senior Notes, and the 7.500% Senior Notes plus the Corporate Revolver or the Facility, whichever is greater. As of December 31, 2021, we exceeded this ratio and restricted approximately $42.9 million in cash to meet our requirements. As of March 31, 2022, our net leverage ratio was below 2.50x, therefore in May 2022, we released $59.1 million from restricted cash upon submission of the net leverage test as of March 31, 2022. As of December, 31, 2022 our net leverage ratio remained below 2.50x. Receivables Our receivables consist of joint interest billings, oil and gas sales, related party and other receivables. Receivables from joint interest owners are stated at amounts due, net of any allowances for doubtful accounts. As required by ASU 2016-13, "Measurement of Credit Losses on Financial Instruments", we determine our allowance based on historical experience, current conditions and reasonable and supportable forecasts by considering the length of time past due, future net revenues of the debtor’s ownership interest in oil and natural gas properties we operate, and the owner’s ability to pay its obligation, among other things. We had an allowance for doubtful accounts of $7.0 million and $5.2 million in current joint interest billings receivables as of December 31, 2022 and 2021, respectively. Inventories Inventories consisted of $125.3 million and $149.5 million of materials and supplies and $8.2 million and $15.7 million of hydrocarbons as of December 31, 2022 and 2021, 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 net realizable value. We recorded write downs of $1.5 million, $1.2 million and $8.6 million during the years ended December 31, 2022, 2021 and 2020 for materials and supplies inventories as Other expenses, net in the consolidated statements of operations and other in the consolidated statements of cash flows. Hydrocarbon inventory is carried at the lower of cost, using the weighted average cost method, or net realizable value. Hydrocarbon inventory costs include expenditures and other charges 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. Leases We account for leases in accordance with ASC Topic 842, Leases, (“ASC 842”). We determine if an arrangement is a lease at contract inception. In the normal course of business, the Company enters into various lease agreements for real estate and equipment related to its exploration, development and production activities that are currently accounted for as operating leases. Operating leases are included in Other assets, Accrued liabilities, and Other long-term liabilities on our consolidated balance sheets. The lease liabilities are initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. We monitor for events or changes in circumstances that require a reassessment of a lease. When a reassessment results in the re-measurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in profit or loss. Exploration and Development Costs The Company follows the successful efforts method of accounting for its oil and gas properties. Acquisition costs for proved and unproved properties are capitalized when incurred. Costs of unproved properties are transferred to proved properties when a determination that proved reserves have been found. Exploration costs, including geological and geophysical costs and costs of carrying unproved properties, are expensed as incurred. Exploratory drilling costs are capitalized when incurred. If exploratory wells are determined to be commercially unsuccessful or dry holes, the applicable costs are expensed and recorded in exploration expense on the consolidated statement of operations. Costs incurred to drill and equip development wells, including unsuccessful development wells, are capitalized. Costs incurred to operate and maintain wells and equipment and to lift oil and natural gas to the surface are expensed as oil and gas production expense. The Company evaluates unproved property periodically for impairment. The impairment assessment considers results of exploration activities, commodity price outlooks, planned future sales or expiration of all or a portion of such projects. If it is determined that future appraisal drilling or development activities are unlikely to occur, the associated capitalized costs are recorded as exploration expense in the consolidated statement of operations. Depletion, Depreciation and Amortization Proved properties and support equipment and facilities are depleted using the unit‑of‑production method based on estimated proved oil and natural gas reserves. Capitalized exploratory drilling costs that result in a discovery of proved reserves and development costs are depleted using the unit‑of‑production method based on estimated proved developed oil and natural gas reserves for the related field. Depreciation and amortization of other property is computed using the straight-line method over the assets’ estimated useful lives (not to exceed the lease term for leasehold improvements), ranging from one Years Leasehold improvements 1 to 8 Office furniture, fixtures and computer equipment 3 to 7 Amortization of deferred financing costs is computed using the straight‑line method over the life of the related debt. Capitalized Interest Interest costs from external borrowings are capitalized on major projects with an expected construction period of one year or longer. Capitalized interest is added to the cost of the underlying asset and is depleted on the unit‑of‑production method in the same manner as the underlying assets. Asset Retirement Obligations The Company accounts for asset retirement obligations as required by ASC 410—Asset Retirement and Environmental Obligations. Under these standards, the fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. If a reasonable estimate of fair value cannot be made in the period the asset retirement obligation is incurred, the liability is recognized when a reasonable estimate of fair value can be made. If a tangible long‑lived asset with an existing asset retirement obligation is acquired, a liability for that obligation is recognized at the asset’s acquisition or in service date. In addition, a liability for the fair value of a conditional asset retirement obligation is recorded if the fair value of the liability can be reasonably estimated. We capitalize the asset retirement costs by increasing the carrying amount of the related long‑lived asset by the same amount as the liability. We record increases in the discounted abandonment liability resulting from the passage of time in depletion, depreciation and amortization in the consolidated statement of operations. Estimating the future restoration and removal costs requires management to make estimates and judgments because most of the removal obligations are many years in the future and contracts and regulations often have vague descriptions of what constitutes removal. Additionally, asset removal technologies and costs are constantly changing, as are regulatory, political, environmental, safety and public relations considerations. Inherent in the present value calculation are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligations, a corresponding adjustment is made to the oil and gas property balance. Acquisition Accounting The purchase price in an acquisition (business combination or asset acquisition) is allocated to the assets acquired and liabilities assumed based on their relative fair values as of the acquisition date, which may occur many months after the deal announcement date. Therefore, while the consideration to be paid may be fixed, the fair value of the assets acquired, and liabilities assumed is subject to change during the period between the announcement date and the acquisition date. The most significant estimates in the allocation typically relate to the value assigned to future recoverable oil and natural gas reserves and unproved properties. As the allocation of the purchase price is subject to significant estimates and subjective judgments, the accuracy of this assessment is inherently uncertain. Impairment of Long‑lived Assets We review our long‑lived assets for impairment when changes in circumstances indicate that the carrying amount of an asset may not be recoverable. ASC 360 — Property, Plant and Equipment requires an impairment loss to be recognized if the carrying amount of a long‑lived asset is not recoverable and exceeds its fair value. The carrying amount of a long‑lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment shall be based on the carrying amount of the asset at the date it is tested for recoverability, whether in use or under development. Assets to be disposed of and assets not expected to provide any future service potential to us are recorded at the lower of carrying amount or fair value. Oil and gas properties are grouped in accordance with ASC 932 — Extractive Activities-Oil and Gas. The basis for grouping is a reasonable aggregation of properties typically by field or by logical grouping of assets with significant shared infrastructure. For long-lived assets whereby the carrying value exceeds the estimated future undiscounted cash flows, the carrying amount is reduced to fair value. Fair value is generally estimated using the income approach described in the ASC 820 — Fair Value Measurement. If applicable, we utilize prices and other relevant information generated by market transactions involving assets and liabilities that are identical or comparable to the item being measured as the basis for determining fair value. The expected future cash flows used for impairment reviews and related fair value measurements are typically based on judgmental assessments of future production, pricing estimates, capital and operating costs, market-based weighted average cost of capital, and risk adjustment factors applied to reserves. These assumptions are applied to develop future cash flow projections that are then discounted to estimated fair value, using a market-based weighted-average cost of capital. Although we base the fair value estimate of each asset group on assumptions we believe to be reasonable, those assumptions are inherently unpredictable and uncertain, and actual results could differ from the estimate. Negative revisions of estimated reserve quantities, increases in future cost estimates, divestiture of a significant component of the asset group, or sustained decreases in crude oil prices could lead to a reduction in expected future cash flows and possibly an additional impairment of long-lived assets in future periods. We believe the assumptions used in our analysis to test for impairment are appropriate and result in a reasonable estimate of future cash flows and fair value. Kosmos has consistently used an average of third-party industry forecasts to determine our pricing assumptions. Where unproved reserves exist, an appropriately risk-adjusted amount of these reserves may be included in the evaluation. Derivative Instruments and Hedging Activities We utilize oil derivative contracts to mitigate our exposure to commodity price risk associated with our anticipated future oil production. These derivative contracts consist of collars, put options, call options and swaps. We also have used interest rate derivative contracts to mitigate our exposure to interest rate fluctuations related to our long‑term debt. Our derivative financial instruments are recorded on the balance sheet as either assets or liabilities and are measured at fair value. We do not apply hedge accounting to our derivative contracts. See Note 9—Derivative Financial Instruments. Estimates of Proved Oil and Natural Gas Reserves Reserve quantities and the related estimates of future net cash flows affect our periodic calculations of depletion and assessment of impairment of our oil and natural gas properties. Proved oil and natural gas reserves are the estimated quantities of crude oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be recoverable in future periods from known reservoirs under existing economic and operating conditions. As additional proved reserves are discovered, reserve quantities and future cash flows will be estimated by independent petroleum consultants and prepared in accordance with guidelines established by the SEC and the FASB. The accuracy of these reserve estimates is a function of: • the engineering and geological interpretation of available data; • estimates of the amount and timing of future operating cost, production taxes, development cost and workover cost; • the accuracy of various mandated economic assumptions; and • the judgments of the persons preparing the estimates. Revenue Recognition We recognize revenues on the volumes of hydrocarbons sold to a purchaser. The volumes sold may be more or less than the volumes to which we are entitled based on our ownership interest in the property. These differences result in a condition known in the industry as a production imbalance. A receivable or liability is recognized only to the extent that we have an imbalance on a specific property greater than the expected remaining proved reserves on such property. As of December 31, 2022 and 2021, we had no oil and gas imbalances recorded in our consolidated financial statements. Our oil and gas revenues are recognized when hydrocarbons have been sold to a purchaser at a fixed or determinable price, title has transferred and collection is probable. Certain revenues are based on provisional price contracts which contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from oil sales at the spot price on the date of sale. The embedded derivative, which is not designated as a hedge, is marked to market through oil and gas revenue each period until the final settlement occurs, which generally is limited to the month after the sale. Oil and gas revenue is composed of the following: Years Ended December 31, 2022 2021 2020 (In thousands) Revenues from contract with customer - Equatorial Guinea $ 349,443 $ 257,628 $ 149,033 Revenues from contract with customer - Ghana 1,362,875 654,644 375,603 Revenues from contract with customers - U.S. Gulf of Mexico 547,610 427,261 285,017 Provisional oil sales contracts (14,573) (7,520) (5,620) Oil and gas revenue $ 2,245,355 $ 1,332,013 $ 804,033 Equity‑based Compensation For equity‑based compensation awards, compensation expense is recognized in the Company’s financial statements over the awards’ vesting periods based on their grant date fair value. The Company utilizes (i) the closing stock price on the date of grant to determine the fair value of service vesting restricted stock units and (ii) a Monte Carlo simulation to determine the fair value of restricted stock units with a combination of market and service vesting criteria. Forfeitures are recognized in the period in which they occur. Restructuring Charges The Company accounts for restructuring charges and related termination benefits in accordance with ASC 712-Compensation-Nonretirement Postemployment Benefits. Under this standard, the costs associated with termination benefits are recorded during the period in which the liability is incurred. During the years ended December 31, 2022, 2021 and 2020, we recognized zero, $2.6 million and $16.5 million, respectively, in restructuring charges for employee severance and related benefit costs incurred as part of a corporate reorganization in Other expenses, net in the consolidated statement of operations. Income Taxes The Company accounts for income taxes as required by ASC 740—Income Taxes. Under this method, deferred income taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. On a quarterly basis, management evaluates the need for and adequacy of valuation allowances based on the expected realizability of the deferred tax assets and adjusts the amount of such allowances, if necessary. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the tax authorities, based on the technical merits of the position. Accordingly, we measure tax benefits from such positions based on the most likely outcome to be realized. Foreign Currency Translation The U.S. dollar is the functional currency for all of the Company’s material foreign operations. Foreign currency transaction gains and losses and adjustments resulting from translating monetary assets and liabilities denominated in foreign currencies are included in other expenses. Cash balances held in foreign currencies are not significant, and as such, the effect of exchange rate changes is not material to any reporting period. Concentration of Credit Risk Our revenue can be materially affected by current economic conditions and the price of oil and natural gas. However, based on the current demand for crude oil and natural gas and the fact that alternative purchasers are readily available, we believe that the loss of our marketing agents and/or any of the purchasers identified by our marketing agents would not have a long‑term material adverse effect on our financial position or results of international operations. The continued economic disruption resulting from the COVID-19 pandemic, Russia’s invasion of Ukraine, a potential global recession, and other varying macroeconomic conditions could materially impact the Company's business in future periods. Any potential disruption will depend on the duration and intensity of these events, which are highly uncertain and cannot be predicted at this time. Recent Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848),” which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the cessation of the LIBOR. The guidance was amended effective October 5, 2022 by ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, to extend the sunset date of Topic 848 and can be applied prospectively through December 31, 2024. As we implement the cessation of LIBOR into our current contracts and hedging relationships, the Company is evaluating whether to apply any of these expedients and, if elected, will adopt these standards when LIBOR is discontinued. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures 2022 Transactions In March 2022, Kosmos completed the acquisition of an additional 5.5% interest in Winterfell area in Green Canyon Blocks 943, 944, 987 and 988, offshore U.S. Gulf of Mexico, and an additional 1.5% interest in Green Canyon blocks 899 and 900 for $9.6 million. Additionally, in September 2022, Kosmos completed the acquisition of an additional 3.2% interest in the Winterfell area in Green Canyon Blocks 943, 944, 987 and 988 and an additional 1.4% interest in Green Canyon Blocks 899 and 900 for $6.6 million. As a result of the two transactions, our participating interests in the Green Canyon Blocks 943, 944, 987 and 988 is now 25.0% and our participating interests in the Green Canyon Blocks 899 and 900 is 37.8%. In May 2022, Kosmos and its joint venture partners agreed with the Ministry of Mines and Hydrocarbons of Equatorial Guinea to extend the Block G petroleum contract term harmonizing the expiration of the Ceiba Field and Okume Complex production licenses (from 2029 and 2034 respectively) to 2040. As part of the extension, during the second quarter of 2022, Kosmos paid a signature bonus and agreed to undertake a work program including the drilling of three development wells on Block G in either the Ceiba Field or Okume Complex and the drilling of one exploration well in Block S offshore Equatorial Guinea. In June 2022, Kosmos completed the acquisition of an additional 5.9% interest in the Kodiak oil field from Marubeni by exercising our preferential right to purchase for a total purchase price of approximately $29.0 million. The purchase price was based on an initial purchase price of $38.3 million reduced by certain purchase adjustments totaling approximately $9.3 million. The purchase price allocation was based on the estimated fair value of identifiable assets acquired and liabilities assumed primarily comprised of $27.1 million of oil and gas properties, net. As a result of the transaction, our working interest increased from 29.1% to 35.0%. In June 2022, at the conclusion of the second exploration period, Block C12 offshore Mauritania was relinquished. In October 2022, we entered into a farm-out agreement with Panoro Energy ASA (Panoro) to farm-out a 6.0% participating interest in Block S offshore Equatorial Guinea, which will result in our participating interest in Block S reducing to 34.0%, in exchange for cash consideration totaling approximately $1.8 million. The transaction is awaiting governmental approvals. 2021 Transactions In October 2021, Kosmos completed the acquisition of Anadarko WCTP Company (“Anadarko WCTP”), a subsidiary of Occidental Petroleum Corporation, which owns a participating interest in the WCTP Block and DT Block offshore Ghana, including an 18.0% participating interest in the Jubilee Unit Area and an 11.1% participating interest in the TEN fields. In consideration for the acquisition, Kosmos paid $455.9 million in cash based on an initial purchase price of $550.6 million reduced by certain purchase price adjustments totaling $94.7 million. Additionally, we incurred $9.5 million of transaction related costs, which were capitalized as part of the purchase price. Following closing of the acquisition, Kosmos’ interest in the Jubilee Unit Area increased from 24.1% to 42.1%, and Kosmos’ interest in the TEN fields increased from 17.0% to 28.1%. Kosmos initially funded the purchase price through the issuance of $400.0 million aggregate principal amount of floating rate senior notes due 2022 (“Bridge Notes”) and $75.0 million of borrowings under Kosmos' Facility. Kosmos then refinanced the Bridge Notes in full with the proceeds from the issuance of $400.0 million of 7.750% Senior Notes due 2027 and cash on hand. Kosmos also received $136.6 million in proceeds from a public issuance of 43.1 million shares of Kosmos’ common stock with proceeds used to repay a portion of outstanding borrowings under the Facility during the fourth quarter of 2021. The purchase price allocation was based on the estimated fair value of identifiable assets acquired and liabilities assumed. Purchase Price Allocation (in thousands) Fair value of assets acquired: Proved oil and gas properties $ 718,159 Accounts receivable and other 95,847 Total assets acquired $ 814,006 Fair value of liabilities assumed: Asset retirement obligations $ 28,342 Accounts payable and accrued liabilities 113,704 Deferred tax liabilities 206,593 Total liabilities assumed $ 348,639 Purchase price: Cash consideration paid $ 455,886 Transaction related costs 9,481 Total purchase price $ 465,367 As a result of the acquisition of Anadarko WCTP, $104.4 million of revenues and $10.3 million of direct operating expenses have been included in our consolidated statements of operations for the period from October 13, 2021 to December 31, 2021. Under the DT Block Joint Operating Agreement, certain joint venture partners have pre-emption rights in the Jubilee Unit Area and the TEN fields. In November 2021, we received notice from Tullow Oil plc (“Tullow”) and PetroSA that they were exercising their pre-emption rights in relation to Kosmos’ acquisition of Anadarko WCTP. After execution of definitive transaction documentation and receipt of government approvals, Kosmos concluded the pre-emption transaction with Tullow in March 2022. Following the completion of the pre-emption process, Kosmos’ interest in the Jubilee Unit Area decreased from 42.1% to 38.6% and Kosmos’ interest in the TEN fields decreased from 28.1% to 20.4%. Tullow paid Kosmos $118.2 million in cash consideration after post closing adjustments for the pre-emption. During the first quarter of 2022, our oil and gas properties, net balance was reduced by $175.5 million, which includes the cash proceeds and net liabilities transferred to the purchaser as a result of concluding the Tullow pre-emption transaction. The difference in the net book value of the proved property, net liabilities transferred and adjusted purchase price qualified for treatment as a recovery of cost and normal retirement under ASC 932, which resulted in no gain or loss being recognized. In 2021, at the conclusion of the second exploration period, Block C13 offshore Mauritania was relinquished. 2020 Transactions During the third quarter of 2020, Kosmos entered into an agreement with Shell to farm down interests in a portfolio of frontier exploration assets for cash consideration of $96.0 million and future contingent consideration of up to $100.0 million. Under the terms of the agreement, Shell acquired Kosmos' participating interest in blocks offshore Sao Tome and Principe (excluding Block 5 offshore Sao Tome and Principe), Suriname, Namibia and South Africa. Kosmos received proceeds totaling $95.0 million during the fourth quarter of 2020 resulting in gain on sale of assets of $92.1 million for the year ended December 31, 2020. The remaining proceeds of $1.0 million related to Kosmos' participating interest in South Africa were received during the third quarter of 2021. The potential contingent consideration is payable by Shell depending on the results of the first four exploration wells drilled by Shell in the purchased assets, excluding South Africa. Upon approval of the relevant operating committee of an appraisal plan for submission to the relevant governmental authority under the relevant host government contract for any of the first four exploration wells, Shell is required to pay Kosmos $50.0 million of consideration for each discovery for which an appraisal plan is approved by the relevant operating committee, capped in the aggregate at a maximum of $100.0 million. During the fourth quarter of 2022, we received formal notice from Shell that an appraisal plan for one of the first four exploration wells had been submitted under the terms of Shell’s Petroleum Agreement with Namibia. As a result, we received additional proceeds of $50.0 million in the fourth quarter of 2022 related to the transaction with Shell resulting in Gain on sale of assets of $50.0 million for the year ended December 31, 2022. In October 2020, Kosmos withdrew from Block C6 offshore Mauritania. In May 2020, a withdrawal notice for our blocks offshore Cote d'Ivoire was issued to partners and the Government of Cote d’Ivoire. In July 2020, we provided notice that we declined to enter the final exploration phase of the Suriname Block 45 petroleum agreement. |
Joint Interest Billings and Lon
Joint Interest Billings and Long-term Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Joint Interest Billings | |
Joint Interest Billings and Long-term Receivables | Joint Interest Billings and Long-term Receivables Joint Interest Billings The Company’s joint interest billings consist of receivables from partners with interests in common oil and gas properties operated by the Company for shared costs. Joint interest billings are classified on the face of the consolidated balance sheets as current and long-term receivables based on when collection is expected to occur. In Ghana, the foreign contractor group funded GNPC’s 5% share of TEN development costs. The foreign contractor group is being reimbursed for such costs plus interest out of a portion of GNPC’s TEN production revenues. As of December 31, 2022 and 2021, the current portion of the joint interest billing receivables due from GNPC for the TEN fields' development costs were $6.4 million and $7.9 million, respectively, and the long-term portions were $17.3 million and $20.9 million. Notes Receivable In February 2019, Kosmos and BP signed Carry Advance Agreements with the national oil companies of Mauritania and Senegal obligating us to finance a portion of the respective national oil companies’ share of certain development costs incurred through first gas production for Greater Tortue Ahmeyim Phase 1, currently targeted to be in the fourth quarter of 2023. Kosmos’ share for the two agreements combined is currently estimated at approximately $240.0 million, which is to be repaid with interest through the national oil companies’ share of future revenues. As of December 31, 2022 and 2021, the balance due from the national oil companies including interest was $218.4 million and $145.2 million, respectively, which is classified as Long-term receivables in our consolidated balance sheets. Interest income on the long-term notes receivable was $10.1 million, $7.1 million and $3.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Other Long-term Receivables In August 2021, BP, as the operator of the Greater Tortue project (“BP Operator”), with the consent of the Greater Tortue Unit participants and the respective States, agreed to sell the Greater Tortue FPSO (which is currently under construction |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is stated at cost and consisted of the following: December 31, 2022 2021 (In thousands) Oil and gas properties: Proved properties $ 6,953,435 $ 6,725,453 Unproved properties 341,334 451,454 Total oil and gas properties 7,294,769 7,176,907 Accumulated depletion (3,457,332) (2,999,584) Oil and gas properties, net 3,837,437 4,177,323 Other property 60,730 58,598 Accumulated depreciation (55,520) (51,934) Other property, net 5,210 6,664 Property and equipment, net $ 3,842,647 $ 4,183,987 We recorded depletion expense of $471.4 million, $442.3 million and $460.9 million and depreciation expense of $3.6 million, $3.9 million and $5.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. In connection with fair value assessments for oil and gas proved properties, we recorded long-lived asset impairments of $450.0 million related to the TEN Fields in Ghana, zero and $154.0 million related to oil and gas proved properties in the U.S. Gulf of Mexico during the years ended December 31, 2022, 2021 and 2020, respectively, in our consolidated statement of operations. Additionally, during the year ended December 31, 2022, our oil and gas properties, net balance was reduced by $175.5 million as a result of concluding the Tullow pre-emption transaction in March 2022, $64.2 million as a result of the write-off of previously capitalized costs related to the BirAllah and Orca discoveries incurred under the C8 license to exploration expense, offset by additions of $53.1 million related to the acquisition of an additional working interest in the Kodiak oil field, the extension of the Block G licenses in Equatorial Guinea, and the acquisitions of additional participating interests in the Winterfell area. See Note 3 — Acquisitions and Divestitures and Note 6 — Suspended Well Costs. |
Suspended Well Costs
Suspended Well Costs | 12 Months Ended |
Dec. 31, 2022 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Suspended Well Costs | Suspended Well Costs The Company capitalizes exploratory well costs as unproved properties within oil and gas properties until a determination is made that the well has either found proved reserves or is impaired. If proved reserves are found, the capitalized exploratory well costs are reclassified to proved properties. Well costs are charged to exploration expense if the exploratory well is determined to be impaired. The following table reflects the Company’s capitalized exploratory well costs on drilled wells as of and during the years ended December 31, 2022, 2021 and 2020. Years Ended December 31, 2022 2021 2020 (In thousands) Beginning balance $ 218,180 $ 186,289 $ 445,790 Additions to capitalized exploratory well costs pending the determination of proved reserves 25,209 31,891 4,001 Reclassification due to determination of proved reserves(1) (34,614) — (263,502) Capitalized exploratory well costs charged to expense(2) (62,818) — — Ending balance $ 145,957 $ 218,180 $ 186,289 ______________________________________ (1) Activity for the year ended December 31, 2022 represents the reclassification of exploratory well costs associated with the Winterfell discovery in Green Canyon Block 944 in the U.S. Gulf of Mexico. Activity for the year ended December 31, 2020 represents the reclassification of exploratory well costs associated with the Greater Tortue Ahmeyim Unit as a result of the execution of the Tortue Phase 1 SPA in February 2020. (2) Represents the impairment of exploratory well costs associated with the BirAllah and Orca Discoveries as a result of the expiration of the exploration period of Block C8 in June 2022. The following table provides 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: Years Ended December 31, 2022 2021 2020 (In thousands, except well counts) Exploratory well costs capitalized for a period of one year or less $ — $ 20,903 $ — Exploratory well costs capitalized for a period of one to three years 32,770 30,389 66,573 Exploratory well costs capitalized for a period of four to six years 113,187 166,888 119,716 Ending balance $ 145,957 $ 218,180 $ 186,289 Number of projects that have exploratory well costs that have been capitalized for a period greater than one year 2 3 3 As of December 31, 2022, the projects with exploratory well costs capitalized for more than one year since the completion of drilling are related to the Yakaar and Teranga discoveries in the Cayar Offshore Profond block offshore Senegal and the Asam discovery in Block S offshore Equatorial Guinea. Yakaar and Teranga Discoveries — In May 2016, we completed the Teranga-1 exploration well in the Cayar Offshore Profond Block offshore Senegal, which encountered hydrocarbon pay. In June 2017, we completed the Yakaar-1 exploration well in the Cayar Offshore Profond Block offshore Senegal, which encountered hydrocarbon pay. In November 2017, an integrated Yakaar-Teranga appraisal plan was submitted to the government of Senegal. In September 2019, we completed the Yakaar-2 appraisal well which encountered hydrocarbon pay. The Yakaar-2 well was drilled approximately nine kilometers from the Yakaar-1 exploration well. In July 2021, the current phase of the Cayar Block exploration license was extended up to an additional three years to 2024. The Yakaar and Teranga discoveries are being analyzed as a joint development. During 2022, we have continued progressing appraisal studies and maturing the first phase development concept design. Following additional evaluation, a decision regarding commerciality is expected to be made. Asam Discovery - In October 2019, we completed the S-5 exploration well offshore Equatorial Guinea, which encountered hydrocarbon pay. The discovery was subsequently named Asam. In July 2020, an appraisal work program was approved by the Government of Equatorial Guinea. The well is located within tieback range of the Ceiba FPSO and the appraisal work program is currently ongoing to integrate all available data into models to establish the scale of the discovered resource and evaluate the optimum development solution. During the fourth quarter of 2022, we received approval from the Government of Equatorial Guinea to enter the second sub-period phase of the Block S exploration license with a scheduled expiration in December 2024. Engineering has continues to progress concepts around required subsea infrastructure necessary for a subsea tieback. Additionally, in December 2022 the Asam field appraisal report was submitted to the Government of Equatorial Guinea. Following additional evaluation, a decision regarding commerciality will be made. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases We have commitments under operating leases primarily related to office leases. Our leases have initial lease terms ranging from one year to ten years. Certain lease agreements contain provisions for future rent increases. The components of lease cost for the years ended December 31, 2022 and 2021 is as follows: December 31, 2022 2021 (In thousands) Operating lease cost $ 3,882 $ 3,971 Variable lease cost 1,825 1,780 Short-term lease cost(1) 13,970 10,790 Total lease cost $ 19,677 $ 16,541 __________________________________ (1) Includes $12.5 million and $9.4 million during the years ended December 31, 2022 and 2021, respectively, of costs associated with short-term drilling contracts. Other information related to operating leases at December 31, 2022 and 2021, is as follows: December 31 2022 2021 (In thousands, except lease term and discount rate) Balance sheet classifications Other assets (right-of-use assets) $ 16,044 $ 17,578 Accrued liabilities (current maturities of leases) 2,181 1,905 Other long-term liabilities (non-current maturities of leases) 18,007 20,351 Weighted average remaining lease term 6.5 years 7.5 years Weighted average discount rate 9.8 % 9.8 % The table below presents supplemental cash flow information related to leases during the years ended December 31, 2022 and 2021: December 31, 2022 2021 (In thousands) Operating cash flows for operating leases $ 7,170 $ 6,460 Investing cash flows for operating leases(1) 12,449 9,350 __________________________________ (1) Represents costs associated with short-term drilling contracts. Future minimum rental commitments under our leases at December 31, 2022, are as follows: Operating Leases(1) (In thousands) 2023 $ 4,032 2024 4,104 2025 4,175 2026 4,246 2027 4,192 Thereafter 6,652 Total undiscounted lease payments $ 27,401 Less: Imputed interest (7,213) Total lease liabilities $ 20,188 __________________________________ (1) Does not include purchase commitments for jointly owned fields and facilities where we are not the operator and excludes commitments for exploration activities, including well commitments, in our petroleum contracts. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt December 31, 2022 2021 (In thousands) Outstanding debt principal balances: Facility $ 625,000 $ 1,000,000 7.125% Senior Notes 650,000 650,000 7.750% Senior Notes 400,000 400,000 7.500% Senior Notes 450,000 450,000 GoM Term Loan 145,000 175,000 Total long-term debt 2,270,000 2,675,000 Unamortized deferred financing costs and discounts(1) (44,089) (54,505) Total debt, net 2,225,911 2,620,495 Less: Current maturities of long-term debt (30,000) (30,000) Long-term debt, net $ 2,195,911 $ 2,590,495 ________________________________________ (1) Includes $25.2 million and $31.0 million of unamortized deferred financing costs related to the Facility; $16.7 million and $20.2 million of unamortized deferred financing costs and discounts related to the Senior Notes; and $2.2 million and $3.3 million of unamortized deferred financing costs related to the GoM Term Loan as of December 31, 2022 and December 31, 2021, respectively. Facility The Facility supports our oil and gas exploration, appraisal and development programs and corporate activities. The amount of funds available to be borrowed under the Facility, also known as the borrowing base amount, is determined every March and September. The borrowing base amount is based on the sum of the net present values of net cash flows and relevant capital expenditures reduced by certain percentages as well as value attributable to certain assets’ reserves and/or resources in the Jubilee and TEN fields in Ghana and the Ceiba and Okume fields in Equatorial Guinea, however, the additional interests in Jubilee and TEN acquired in the October 2021 acquisition of Anadarko WCTP are not included in the borrowing base calculation. In May 2021, the Company entered into an amended and restated facility agreement and certain ancillary documents. As part of this amendment to the Facility in May 2021, the Company incurred $15.2 million for loss on extinguishment of debt during the year ended December 31, 2021. During the year ended December 31, 2022, the Company made principal repayments totaling $375.0 million on the Facility. In April 2022, during the Spring 2022 redetermination, the Company’s lending syndicate approved a borrowing base capacity in excess of the facility size of $1.25 billion. In October 2022, during the Fall 2022 redetermination, the Company’s lending syndicate approved a borrowing base of approximately $1.24 billion. On November 23, 2022, the Company amended the Facility to update the interest rate benchmark from LIBOR to term SOFR, to be effective as of April 19, 2023. As of December 31, 2022, borrowings under the Facility totaled $625.0 million and the undrawn availability under the facility was $618.0 million. When our net leverage ratio exceeds 2.50x, we are required under the Facility to maintain a restricted cash balance that is sufficient to meet the payment of interest and fees for the next six-month period on the 7.125% Senior Notes, the 7.750% Senior Notes and the 7.500% Senior Notes plus the Corporate Revolver or the Facility, whichever is greater. As of December 31, 2021, we exceeded this ratio and restricted approximately $42.9 million in cash to meet our requirements. As of March 31, 2022, our net leverage ratio was below 2.50x, and therefore, we released $59.1 million from restricted cash in May 2022 upon submission of the net leverage test as of March 31, 2022. As of December, 31, 2022 our net leverage ratio remained below 2.50x. Interest on the Facility is the aggregate of the applicable margin (3.75% to 5.00%, depending on the length of time that has passed from the date the Facility was entered into) and LIBOR. Effective April 19, 2023, interest on the Facility will be the aggregate of the applicable margin (3.75% to 5.00%, depending on the length of time that has passed from the date the Facility was entered into), plus the term SOFR reference rate administered by CME Group Benchmark Administration Limited for the relevant period published and a credit adjustment spread. Interest is payable on the last day of each interest period (and, if the interest period is longer than six months, on the dates falling at six-month intervals after the first day of the interest period). We pay commitment fees on the undrawn and unavailable portion of the total commitments, if any. Commitment fees are equal to 30% per annum of the then-applicable respective margin when a commitment is available for utilization and, equal to 20% per annum of the then-applicable respective margin when a commitment is not available for utilization. We recognize interest expense in accordance with ASC 835—Interest, which requires interest expense to be recognized using the effective interest method. We determined the effective interest rate based on the estimated level of borrowings under the Facility. The Facility provides a revolving credit and letter of credit facility. The availability period for the revolving credit facility expires one month prior to the final maturity date. The letter of credit facility expires on the final maturity date. The available facility amount is subject to borrowing base constraints and, beginning on March 31, 2024, outstanding borrowings will be constrained by an amortization schedule. The Facility has a final maturity date of March 31, 2027. As of December 31, 2022, we had no letters of credit issued under the Facility. We have the right to cancel all the undrawn commitments under the amended and restated Facility. If an event of default exists under the Facility, the lenders can accelerate the maturity and exercise other rights and remedies, including the enforcement of security granted pursuant to the Facility over certain assets held by our subsidiaries. We were in compliance with the financial covenants below contained in the Facility as of September 30, 2022 (the most recent assessment date), which requires the maintenance of: • the field life cover ratio (as defined in the glossary), not less than 1.30x; and • the loan life cover ratio (as defined in the glossary), not less than 1.10x through March 31, 2024 and 1.30x after March 31, 2024; and • the interest cover ratio (as defined in the glossary), not less than 2.25x; and • the debt cover ratio (as defined in the glossary), not more than 3.50x as amended. The Facility contains customary cross default provisions. Corporate Revolver On March 31, 2022, we refinanced the Corporate Revolver by replacing it with a new revolving credit facility agreement resulting in the following changes to the terms: • The total size of the Corporate Revolver is reduced from $400 million to $250 million. • The maturity date is extended from May 2022 to December 31, 2024. • Borrowings under the Corporate Revolver now bear interest at a rate equal to SOFR administered by the Federal Reserve Bank of New York plus a credit adjustment spread plus a 7.0% margin plus mandatory costs, if applicable. • Addition of a negative pledge covenant over the participating interests held by the Company’s wholly-owned subsidiary, Kosmos Energy Ghana Investments, in the WCTP and DT blocks offshore Ghana. • As the Corporate Revolver is intended to continue to largely remain undrawn, the Company is required to use the proceeds from any capital markets and loan transactions to first repay any drawn outstanding balance under the Corporate Revolver and the Company is subject to a cash sweep of at least 50% of the Company’s Excess Cash (as defined in the Corporate Revolver) to pay outstanding balances, if any, as of March 31 or September 30 in any calendar year. The Company capitalized $6.1 million of deferred financing costs associated with entering into the new revolving credit facility, which will be amortized over the term of the new revolving credit facility. On November 23, 2022, the Company amended the Corporate Revolver to update the interest rate benchmark from compounded SOFR to term SOFR, to be effective as of April 19, 2023, and to reflect that The Standard Bank of South Africa Limited has been appointed as the new Facility Agent. As of December 31, 2022, there were no outstanding borrowings under the Corporate Revolver and the undrawn availability was $250.0 million The Corporate Revolver is available for general corporate purposes and for oil and gas exploration, appraisal and development programs. Interest accrues at a rate equal to the SOFR administered by the Federal Reserve Bank of New York plus a credit adjustment spread plus a 7.0% margin plus mandatory costs, if applicable. Effective April 19, 2023, interest on the Corporate Revolver will be the aggregate of a 7.0% margin, the term SOFR reference rate administered by CME Group Benchmark Administration Limited for the relevant period published and a credit adjustment spread. Interest is payable on the last day of each interest period (and, if the interest period is longer than six months, on the dates falling at six‑month intervals after the first day of the interest period). We pay commitment fees on the undrawn portion of the total commitments. Commitment fees for the lenders are equal to 30% per annum of the respective margin when a commitment is available for utilization. The Corporate Revolver expires on December 31, 2024. The available amount is not subject to borrowing base constraints. We have the right to cancel all the undrawn commitments under the Corporate Revolver. We are required to repay certain amounts due under the Corporate Revolver with sales of certain subsidiaries or sales of certain assets. If an event of default exists under the Corporate Revolver, the lenders can accelerate the maturity and exercise other rights and remedies, including the enforcement of security granted pursuant to the Corporate Revolver over certain assets held by us. We were in compliance with the financial covenants below contained in the Corporate Revolver as of September 30, 2022 (the most recent assessment date), which requires the maintenance of: • the interest cover ratio (as defined in the glossary), not less than 2.25x; and • the debt cover ratio (as defined in the glossary), not more than 3.50x as amended. The Corporate Revolver contains customary cross default provisions. 7.125% Senior Notes due 2026 In April 2019, the Company issued $650.0 million of 7.125% Senior Notes and received net proceeds of approximately $640.0 million after deducting commissions and other expenses. We used the net proceeds to redeem all of the previously issued 7.875% Senior Secured Notes due 2021, repay a portion of the outstanding indebtedness under the Corporate Revolver and pay fees and expenses related to the redemption, repayment and the issuance of the 7.125% Senior Notes. The 7.125% Senior Notes mature on April 4, 2026. We will pay interest in arrears on the 7.125% Senior Notes each April 4 and October 4, commencing on October 4, 2019. The 7.125% Senior Notes are senior, unsecured obligations of Kosmos Energy Ltd. and rank equal in right of payment with all of its existing and future senior indebtedness (including all borrowings under the Corporate Revolver, the 7.750% Senior Notes and the 7.500% Senior Notes ) and rank effectively junior in right of payment to all of its existing and future secured indebtedness (including all borrowings under the Facility) and all borrowings under the GoM Term Loan. The 7.125% Senior Notes are guaranteed on a senior, unsecured basis by certain subsidiaries owning the Company's U.S. Gulf of Mexico assets and the interests acquired in the Anadarko WCTP acquisition, and on a subordinated, unsecured basis by certain subsidiaries that borrow under, or guarantee, the Facility and that guarantee the Corporate Revolver, the 7.750% Senior Notes and the 7.500% Senior Notes. The 7.125% Senior Notes contain customary cross default provisions. On or after April 4, 2022, the Company may redeem all or a part of the 7.125% Senior Notes at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest: Year Percentage On or after April 4, 2022 103.563 % On or after April 4, 2023 101.781 % On or after April 4, 2024 100.000 % We may also redeem the 7.125% Senior Notes in whole, but not in part, at any time if changes in tax laws impose certain withholding taxes on amounts payable on the 7.125% Senior Notes at a price equal to the principal amount of the 7.125% Senior Notes plus accrued interest and additional amounts, if any, as may be necessary so that the net amount received by each holder after any withholding or deduction on payments of the 7.125% Senior Notes will not be less than the amount such holder would have received if such taxes had not been withheld or deducted. Upon the occurrence of a change of control triggering event as defined under the 7.125% Senior Notes indenture, the Company will be required to make an offer to repurchase the 7.125% Senior Notes at a repurchase price equal to 101% of the principal amount, plus accrued and unpaid interest to, but excluding, the date of repurchase. If we sell assets, under certain circumstances outlined in the 7.125% Senior Notes indenture, we will be required to use the net proceeds to make an offer to purchase the 7.125% Senior Notes at an offer price in cash in an amount equal to 100% of the principal amount of the 7.125% Senior Notes, plus accrued and unpaid interest to, but excluding, the repurchase date. The 7.125% Senior Notes indenture restricts the ability of the Company and its restricted subsidiaries to, among other things: incur or guarantee additional indebtedness, create liens, pay dividends or make distributions in respect of capital stock, purchase or redeem capital stock, make investments or certain other restricted payments, sell assets, enter into agreements that restrict the ability of the Company’s subsidiaries to make dividends or other payments to the Company, enter into transactions with affiliates, or effect certain consolidations, mergers or amalgamations. These covenants are subject to a number of important qualifications and exceptions. Certain of these covenants will be terminated if the 7.125% Senior Notes are assigned an investment grade rating by both Standard & Poor’s Rating Services and Fitch Ratings Inc. and no default or event of default has occurred and is continuing. The 7.125% Senior Notes contain customary cross default provisions. 7.750% Senior Notes due 2027 In October 2021, the Company issued $400.0 million of 7.750% Senior Notes and received net proceeds of approximately $395.0 million after deducting fees. We used the net proceeds, together with cash on hand, to refinance the $400.0 million Bridge Notes (which were issued during the fourth quarter of 2021 in connection with the completion of the acquisition of Anadarko WCTP) and to pay expenses related to the issuance of the 7.750% Senior Notes. The 7.750% Senior Notes mature on May 1, 2027. Interest is payable in arrears each May 1 and November 1, commencing on May 1, 2022. The 7.750% Senior Notes are senior, unsecured obligations of Kosmos Energy Ltd. and rank equal in right of payment with all of its existing and future senior indebtedness (including all borrowings under the Corporate Revolver, the 7.125% Senior Notes and the 7.500% Senior Notes) and rank effectively junior in right of payment to all of its existing and future secured indebtedness (including all borrowings under the Facility) and all borrowings under the GoM Term Loan. The 7.750% Senior Notes are guaranteed on a senior, unsecured basis by certain subsidiaries owning the Company's U.S. Gulf of Mexico assets and the interests acquired in the Anadarko WCTP acquisition, and on a subordinated, unsecured basis by certain subsidiaries that borrow under, or guarantee, the Facility and that guarantee the Corporate Revolver, the 7.125% Senior Notes and the 7.500% Senior Notes. The 7.750% Senior Notes contain customary cross default provisions. At any time prior to November 1, 2023, and subject to certain conditions, the Company may, on one or more occasions, redeem up to 40% of the original principal amount of the 7.750% Senior Notes with an amount not to exceed the net cash proceeds of certain equity offerings at a redemption price of 107.750% of the outstanding principal amount of the 7.750% Senior Notes, together with accrued and unpaid interest and premium, if any, to, but excluding, the date of redemption. Additionally, at any time prior to November 1, 2023 the Company may, on any one or more occasions, redeem all or a part of the 7.750% Senior Notes at a redemption price equal to 100%, plus any accrued and unpaid interest, and plus a “make-whole” premium. On or after November 1, 2023, the Company may redeem all or a part of the 7.750% Senior Notes at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest: Year Percentage On or after November 1, 2023 103.875 % On or after November 1, 2024 101.938 % On or after November 1, 2025 100.000 % We may also redeem the 7.750% Senior Notes in whole, but not in part, at any time if changes in tax laws impose certain withholding taxes on amounts payable on the 7.750% Senior Notes at a price equal to the principal amount of the 7.750% Senior Notes plus accrued interest and additional amounts, if any, as may be necessary so that the net amount received by each holder after any withholding or deduction on payments of the 7.750% Senior Notes will not be less than the amount such holder would have received if such taxes had not been withheld or deducted. Upon the occurrence of a change of control triggering event as defined under the 7.750% Senior Notes indenture, the Company will be required to make an offer to repurchase the 7.750% Senior Notes at a repurchase price equal to 101% of the principal amount, plus accrued and unpaid interest to, but excluding, the date of repurchase. If we sell assets, under certain circumstances outlined in the 7.750% Senior Notes indenture, we will be required to use the net proceeds to make an offer to purchase the 7.750% Senior Notes at an offer price in cash in an amount equal to 100% of the principal amount of the 7.750% Senior Notes, plus accrued and unpaid interest to, but excluding, the repurchase date. The 7.750% Senior Notes indenture restricts the ability of the Company and its restricted subsidiaries to, among other things: incur or guarantee additional indebtedness, create liens, pay dividends or make distributions in respect of capital stock, purchase or redeem capital stock, make investments or certain other restricted payments, sell assets, enter into agreements that restrict the ability of the Company's subsidiaries to make dividends or other payments to the Company, enter into transactions with affiliates, or effect certain consolidations, mergers or amalgamations. These covenants are subject to a number of important qualifications and exceptions. Certain of these covenants will be terminated if the 7.750% Senior Notes are assigned an investment grade rating by both Standard & Poor’s Rating Services and Fitch Ratings Inc. and no default or event of default has occurred and is continuing. The 7.750% Senior Notes contain customary cross default provisions. 7.500% Senior Notes due 2028 In March 2021, the Company issued $450.0 million of 7.500% Senior Notes and received net proceeds of approximately $444.4 million after deducting fees. We used the net proceeds to repay outstanding indebtedness under the Corporate Revolver and the Facility, to pay expenses related to the issuance of the 7.500% Senior Notes and for general corporate purposes. The 7.500% Senior Notes mature on March 1, 2028. Interest is payable in arrears each March 1 and September 1, commencing on September 1, 2021. The 7.500% Senior Notes are senior, unsecured obligations of Kosmos Energy Ltd. and rank equal in right of payment with all of its existing and future senior indebtedness (including all borrowings under the Corporate Revolver, the 7.125% Senior Notes and the 7.750% Senior Notes) and rank effectively junior in right of payment to all of its existing and future secured indebtedness (including all borrowings under the Facility) and all borrowings under the GoM Term Loan. The 7.500% Senior Notes are guaranteed on a senior, unsecured basis by certain subsidiaries owning the Company's U.S. Gulf of Mexico assets and the interests in the Anadarko WCTP acquisition, and on a subordinated, unsecured basis by certain subsidiaries that borrow under, or guarantee, the Facility and that guarantee the Corporate Revolver, and the 7.125% Senior Notes and the 7.750% Senior Notes. The 7.500% Senior Notes contain customary cross default provisions. At any time prior to March 1, 2024, and subject to certain conditions, the Company may, on one or more occasions, redeem up to 40% of the original principal amount of the 7.500% Senior Notes with an amount not to exceed the net cash proceeds of certain equity offerings at a redemption price of 107.500% of the outstanding principal amount of the 7.500% Senior Notes, together with accrued and unpaid interest and premium, if any, to, but excluding, the date of redemption. Additionally, at any time prior to March 1, 2024 the Company may, on any one or more occasions, redeem all or a part of the 7.500% Senior Notes at a redemption price equal to 100%, plus any accrued and unpaid interest, and plus a “make-whole” premium. On or after March 1, 2024, the Company may redeem all or a part of the 7.500% Senior Notes at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest: Year Percentage On or after March 1, 2024 103.750 % On or after March 1, 2025 101.875 % On or after March 1, 2026 100.000 % We may also redeem the 7.500% Senior Notes in whole, but not in part, at any time if changes in tax laws impose certain withholding taxes on amounts payable on the 7.500% Senior Notes at a price equal to the principal amount of the 7.500% Senior Notes plus accrued interest and additional amounts, if any, as may be necessary so that the net amount received by each holder after any withholding or deduction on payments of the 7.500% Senior Notes will not be less than the amount such holder would have received if such taxes had not been withheld or deducted. Upon the occurrence of a change of control triggering event as defined under the 7.500% Senior Notes indenture, the Company will be required to make an offer to repurchase the 7.500% Senior Notes at a repurchase price equal to 101% of the principal amount, plus accrued and unpaid interest to, but excluding, the date of repurchase. If we sell assets, under certain circumstances outlined in the 7.500% Senior Notes indenture, we will be required to use the net proceeds to make an offer to purchase the 7.500% Senior Notes at an offer price in cash in an amount equal to 100% of the principal amount of the 7.500% Senior Notes, plus accrued and unpaid interest to, but excluding, the repurchase date. The 7.500% Senior Notes indenture restricts the ability of the Company and its restricted subsidiaries to, among other things: incur or guarantee additional indebtedness, create liens, pay dividends or make distributions in respect of capital stock, purchase or redeem capital stock, make investments or certain other restricted payments, sell assets, enter into agreements that restrict the ability of the Company’s subsidiaries to make dividends or other payments to the Company, enter into transactions with affiliates, or effect certain consolidations, mergers or amalgamations. These covenants are subject to a number of important qualifications and exceptions. Certain of these covenants will be terminated if the 7.500% Senior Notes are assigned an investment grade rating by both Standard & Poor’s Rating Services and Fitch Ratings Inc. and no default or event of default has occurred and is continuing. The 7.500% Senior Notes contain customary cross default provisions. GoM Term Loan In September 2020, the Company entered into a five-year $200 million senior secured term-loan credit agreement secured against the Company's U.S. Gulf of Mexico assets with net proceeds received of $197.7 million after deducting fees and other expenses. The GoM Term Loan also includes an accordion feature providing for incremental commitments of up to $100 million subject to certain conditions. The GoM Term Loan bears interest at an effective rate of approximately 6.9% per annum and matures in 2025, with quarterly principal repayments having started in the fourth quarter of 2021. As of December 31, 2022, $30.0 million of the total $145 million outstanding under the GoM Term Loan have been classified within Current maturities of long-term debt on our consolidated balance sheet. The GoM Term Loan contains customary affirmative and negative covenants, including covenants that affect our ability to incur additional indebtedness, create liens, merge, dispose of assets, and make distributions, dividends, investments or capital expenditures, among other things. The GoM Term Loan is guaranteed on a senior, secured basis by certain subsidiaries owning the Company's U.S. Gulf of Mexico assets. The GoM Term Loan includes certain representations and warranties, indemnities and events of default that, subject to certain materiality thresholds and grace periods, arise as a result of a payment default, failure to comply with covenants, material inaccuracy of representation or warranty, and certain bankruptcy or insolvency proceedings. If there is an event of default, all or any portion of the outstanding indebtedness may be immediately due and payable and other rights may be exercised including against the collateral. We were in compliance with the covenants, representations and warranties contained in the GoM Term Loan as of September 30, 2022 (the most recent assessment date). The GoM Term Loan contains customary cross default provisions. At December 31, 2022, the estimated repayments of debt during the five fiscal year periods and thereafter are as follows: Payments Due by Year Total 2023 2024 2025 2026 2027 Thereafter (In thousands) Principal debt repayments(1) $ 2,270,000 $ 30,000 $ 30,000 $ 262,548 $ 918,880 $ 578,572 $ 450,000 _______________________________________ (1) Includes the scheduled maturities for outstanding principal debt balances. The scheduled maturities of debt related to the Facility as of December 31, 2022 are based on our level of borrowings and our estimated future available borrowing base commitment levels in future periods. Any increases or decreases in the level of borrowings or increases or decreases in the available borrowing base would impact the scheduled maturities of debt during the next five years and thereafter. Interest and other financing costs, net Interest and other financing costs, net incurred during the period comprised of the following: Years Ended December 31, 2022 2021 2020 (In thousands) Interest expense $ 180,046 $ 146,706 $ 119,857 Amortization—deferred financing costs 10,401 10,580 9,347 Loss on extinguishment of debt 192 19,625 2,902 Capitalized interest (84,342) (46,098) (25,013) Deferred interest (3,318) (3,401) 2,402 Interest income (12,139) (10,257) (4,773) Other, net 27,420 11,216 5,072 Interest and other financing costs, net $ 118,260 $ 128,371 $ 109,794 Capitalized interest for the years ended December 31, 2022, 2021 and 2020 was $84.3 million, $46.1 million and $25.0 million, respectively, primarily related to spend on the Greater Tortue Ahmeyim project. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 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. We have included an estimate of non-performance risk in the fair value measurement of our derivative contracts as required by ASC 820—Fair Value Measurements and Disclosures. Oil Derivative Contracts The following table sets forth the volumes in barrels underlying the Company’s outstanding oil derivative contracts and the weighted average prices per Bbl for those contracts as of December 31, 2022. Volumes and weighted average prices are net of any offsetting derivative contracts entered into. Weighted Average Price per Bbl Term Type of Contract Index MBbl Net Deferred Premium Payable/(Receivable) Sold Put Floor Ceiling 2023: Jan — Dec Three-way collars Dated Brent 6,000 $ 1.34 $ 49.17 $ 71.67 $ 107.58 Jan — Dec Two-way collars Dated Brent 4,000 1.90 — 72.50 117.50 ______________________________________ In January 2023, we entered into Dated Brent three-way collar contracts for 1.0 MMBbl from January 2024 through December 2024 with a sold put price of $45.00 per barrel, a floor price of $70.00 per barrel and a ceiling price of $100.00 per barrel. See Note 10—Fair Value Measurements for additional information regarding the Company’s derivative instruments. The following tables disclose the Company’s derivative instruments as of December 31, 2022 and 2021 and gain/(loss) from derivatives during the years ended December 31, 2022, 2021 and 2020. Estimated Fair Value Asset (Liability) December 31, Type of Contract Balance Sheet Location 2022 2021 (In thousands) Derivatives not designated as hedging instruments: Derivative assets: Commodity Derivatives assets—current $ 7,344 $ 5,689 Provisional oil sales Receivables: Oil sales 1,170 (853) Commodity Derivatives assets—long-term 1,725 1,026 Derivative liabilities: Commodity Derivatives liabilities—current (6,773) (65,879) Commodity Derivatives liabilities—long-term (778) (6,298) Total derivatives not designated as hedging instruments $ 2,688 $ (66,315) Amount of Gain/(Loss) Years Ended December 31, Type of Contract Location of Gain/(Loss) 2022 2021 2020 (In thousands) Derivatives not designated as hedging instruments: Provisional oil sales Oil and gas revenue $ (14,573) $ (7,520) $ (5,620) Commodity Derivatives, net (260,892) (270,185) (17,180) Total derivatives not designated as hedging instruments $ (275,465) $ (277,705) $ (22,800) Offsetting of Derivative Assets and Derivative Liabilities Our derivative instruments which are subject to master netting arrangements with our counterparties only have the right of offset when there is an event of default. As of December 31, 2022 and 2021, 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. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements In accordance with ASC 820—Fair Value Measurements, 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 December 31, 2022 and 2021, for each fair value hierarchy level: Fair Value Measurements Using: Quoted Prices in Active Markets for Identical Assets Significant Other Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total (In thousands) December 31, 2022 Assets: Commodity derivatives $ — $ 9,069 $ — $ 9,069 Provisional oil sales — 1,170 — 1,170 Liabilities: Commodity derivatives — (7,551) — (7,551) Total $ — $ 2,688 $ — $ 2,688 December 31, 2021 Assets: Commodity derivatives $ — $ 6,715 $ — $ 6,715 Provisional oil sales — (853) — (853) Liabilities: Commodity derivatives — (72,177) — (72,177) Total $ — $ (66,315) $ — $ (66,315) 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. Our long‑term receivables, after any allowances for credit losses, and other long-term assets 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 collars, put options and call options for notional barrels of oil at fixed Dated Brent or NYMEX WTI oil prices. The values attributable to our oil derivatives are based on (i) the contracted notional volumes, (ii) independent active futures price quotes for the respective index, (iii) a credit‑adjusted yield curve applicable to each counterparty by reference to the credit default swap (“CDS”) market and (iv) an independently sourced estimate of volatility for the respective index. 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 commodity derivatives. See Note 9—Derivative Financial Instruments for additional information regarding the Company’s derivative instruments. Provisional Oil Sales The value attributable to provisional oil sales derivative is based on (i) the sales volumes and (ii) the difference in the independent active futures price quotes for the respective index over the term of the pricing period designated in the sales contract and the spot price on the lifting date. Debt The following table presents the carrying values and fair values at December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value (In thousands) 7.125% Senior Notes $ 645,699 $ 558,201 $ 644,572 $ 632,587 7.750% Senior Notes 395,893 335,592 395,131 386,428 7.500% Senior Notes 445,564 361,958 444,892 424,688 GoM Term Loan 145,000 145,000 175,000 175,000 Facility 625,000 625,000 1,000,000 1,000,000 Total $ 2,257,156 $ 2,025,751 $ 2,659,595 $ 2,618,703 The carrying values of our 7.125% Senior Notes, 7.750% Senior Notes and 7.500% Senior Notes represent the principal amounts outstanding less unamortized discounts. The fair values of our 7.125% Senior Notes, 7.750% Senior Notes and 7.500% Senior Notes are based on quoted market prices, which results in a Level 1 fair value measurement. The carrying values of the GoM Term Loan and Facility approximate fair value since they are subject to short-term floating interest rates that approximate the rates available to us for those periods. Nonrecurring Fair Value Measurements - Long-lived assets Certain long-lived assets are reported at fair value on a non-recurring basis on the Company's consolidated balance sheet. These long-lived assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Our long-lived assets are reviewed for impairment when changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company calculates the estimated fair values of its long-lived assets using the income approach described in the ASC 820 — Fair Value Measurements. Significant inputs associated with the calculation of estimated discounted future net cash flows include anticipated future production, pricing estimates, capital and operating costs, market-based weighted average cost of capital, and risk adjustment factors applied to reserves. These are classified as Level 3 fair value assumptions. The Company utilizes an average of third-party industry forecasts of Dated Brent, adjusted for location and quality differentials, to determine our pricing assumptions. In order to evaluate the sensitivity of the assumptions, we analyze sensitivities to prices, production, and risk adjustment factors. As a result of a negative proved oil and gas reserve revision at TEN, primarily driven by recent well performance, we reviewed our TEN long-lived assets for impairment at December 31, 2022, which resulted in impairment charges of $450.0 million for the year ended December 31, 2022, reducing the carrying value of the TEN Fields to the estimated fair value of $235.7 million. As part of our impairment analysis, the average per barrel Dated Brent price of third-party industry forecasts used for purposes of determining discounted future cash flows was in the low-$80s adjusted for inflation. We also took account of the delayed future investment in the field. The expected future cash flows were discounted using a rate of approximately 10 percent which the Company believes is a market-based weighted average cost of capital for industry peers determined appropriate at the time of the valuation. No impairment of proved oil and gas properties was recognized for the year December 31, 2021 as no impairment indicators were identified. As a result of the impact of COVID-19 on the demand for oil and the related significant decrease in oil prices in 2020, our long-lived assets were reviewed for impairment at March 31, 2020, which resulted in impairment charges of $150.8 million in connection with the fair value assessments for oil and gas proved properties in the U.S. Gulf Mexico, reducing the carrying value of the properties to their estimated fair values of $243.7 million. As part of our 2020 impairment analysis, the average per barrel Dated Brent price of third-party industry forecasts used for purposes of determining discounted future cash flows ranged from the mid-$30s in 2020 increasing to the mid-$50s over several years. The expected future cash flows were discounted using a rate of approximately 10 percent, which the Company believes is a market-based weighted average cost of capital for industry peers determined appropriate at the time of the valuation. During the fourth quarter of 2020 the Company recorded additional impairment charges totaling approximately $3.2 million resulting in impairment charges totaling $154.0 million for the year ended December 31, 2020. These impairment charges are included in Impairments of long-lived assets on the consolidated statement of operations. If we experience material declines in oil pricing expectations, increases in our estimated future expenditures o r a decrease in |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations The following table summarizes the changes in the Company’s asset retirement obligations: December 31, 2022 2021 (In thousands) Asset retirement obligations: Beginning asset retirement obligations $ 325,459 $ 251,421 Liabilities incurred during period 13,696 38,967 Liabilities settled during period (9,277) (8,705) Revisions in estimated retirement obligations (50,600) 22,744 Accretion expense 23,256 21,032 Ending asset retirement obligations $ 302,534 $ 325,459 |
Equity-based Compensation
Equity-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-based Compensation | Equity‑based Compensation Restricted Stock Awards and Restricted Stock Units Our Long-Term Incentive Plan (“LTIP”) provides for the granting of incentive awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units, among other award types. In April 2021, the board of directors approved amendments to the LTIP which added 11.0 million shares to the LTIP which were approved at the corresponding Annual Stockholders Meeting. The LTIP as amended provides for the issuance of 61.5 million shares pursuant to awards under the LTIP. As of December 31, 2022, the Company had approximately 5.9 million shares that remain available for issuance under the LTIP. The Company granted restricted stock units with service vesting criteria and with a combination of market and service vesting criteria under the LTIP. Substantially, all of these awards vest over a three year period. Upon vesting, restricted stock units become issued and outstanding stock. The following table reflects the outstanding restricted stock units as of December 31, 2022: Service Vesting Weighted- Average Grant-Date Fair Value Market / Service Vesting Restricted Stock Units Weighted-Average Grant-Date Fair Value (In thousands) (In thousands) Outstanding at December 31, 2019: 4,731 $ 5.71 7,798 $ 8.42 Granted(1) 3,481 5.48 3,394 8.37 Forfeited(1) (1,187) 6.12 (726) 8.03 Vested (2,185) 5.91 (2,607) 9.47 Outstanding at December 31, 2020: 4,840 5.34 7,859 8.11 Granted(1) 2,905 2.57 6,744 3.91 Forfeited(1) (649) 4.05 (1,998) 5.50 Vested (2,400) 5.19 (1,372) 9.95 Outstanding at December 31, 2021: 4,696 3.88 11,233 5.28 Granted(1) 2,820 4.70 3,388 6.98 Forfeited(1) (147) 3.92 (389) 6.21 Vested (2,453) 4.21 (2,191) 5.98 Outstanding at December 31, 2022: 4,916 4.18 12,041 5.61 __________________________________ (1) The restricted stock units with a combination of market and service vesting criteria may vest between 0% and 200% of the originally granted units depending upon market performance conditions. Awards vesting over or under target shares of 100% results in additional shares granted or forfeited, respectively, in the period the market vesting criteria is determined. As of December 31, 2022, total equity‑based compensation to be recognized on unvested restricted stock units is $20.1 million over a weighted average period of 1.7 years. 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 ranged from $1.06 to $12.33 per award. The Monte Carlo simulation model utilizes multiple input variables that determined 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 50.0% to 104.8%. The risk‑free interest rate was based on the U.S. treasury rate for a term commensurate with the expected life of the grant ranged from 0.2% to 2.5%. The expected quarterly dividends ranged from $0.000 to $0.050 commensurate with our current dividend experience. In January 2023, we granted 2.1 million service vesting restricted stock units and 2.7 million market and service vesting restricted stock units to our employees under our long-term incentive plan. We expect to recognize approximately $49.0 million of non-cash compensation expense related to these grants over the next three years. We record equity-based compensation expense equal to the grant date fair value of share‑based payments over the vesting periods of the LTIP awards. The following table summarizes certain information related to our share-based payments: Years Ended December 31, 2022 2021 2020 (In thousands) Share-based compensation expense $ 34,546 $ 31,651 $ 32,706 Total tax benefit 5,933 5,786 4,694 Net tax shortfall (windfall) 673 6,307 1,175 Fair value of awards vested 22,205 9,435 26,039 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We provide for income taxes based on the laws and rates in effect in the countries in which our operations are conducted. The relationship between our pre‑tax income or loss from continuing operations and our income tax expense or benefit varies from period to period as a result of various factors which include changes in total pre‑tax income or loss, the jurisdictions in which our income (loss) is earned and the tax laws in those jurisdictions. In March 2020, the Coronavirus Aid, Relief, and Economic Security ACT (“CARES Act”) became law. Among other things, the CARES Act permits taxpayers to carry back U.S. taxable losses generated during tax years 2018 through 2020 to the five tax years preceding the loss year to obtain tax refunds. Certain of our U.S. legal entities qualify for such relief and we recorded a current tax benefit of $4.9 million during the first quarter of 2020, with a total $12.2 million income tax refund claim. Other provisions of the CARES Act are not expected to have a material impact to our tax expense. During the year ended December 31, 2022, our deferred tax liability decreased by approximately $242.7 million. Approximately $44.6 million of the decrease is the result of concluding the Tullow pre-emption transaction in March 2022. See Note 3 - Acquisitions and Divestitures. The remaining $198.1 million decrease in our deferred tax liability is primarily the result of originating and reversing temporary differences. Income (loss) before income taxes is composed of the following: Years Ended December 31, 2022 2021 2020 (In thousands) United States $ 73,529 $ (75,948) $ (338,746) Foreign 263,538 32,568 (78,049) Income (loss) before income taxes $ 337,067 $ (43,380) $ (416,795) The components of the provision for income taxes attributable to our income (loss) before income taxes consist of the following: Years Ended December 31, 2022 2021 2020 (In thousands) Current: United States $ 7,174 $ 282 $ (12,208) Foreign 300,829 103,348 49,586 Total current 308,003 103,630 37,378 Deferred: United States 84 1,202 34,831 Foreign (197,571) (70,376) (77,418) Total deferred (197,487) (69,174) (42,587) Income tax expense (benefit) $ 110,516 $ 34,456 $ (5,209) Our reconciliation of income tax expense (benefit) computed by applying our statutory rate and the reported effective tax rate on income or (loss) from continuing operations is as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Tax at statutory rate $ 70,784 $ (9,110) $ (87,527) Foreign income (loss) taxed at different rates 20,663 17,344 (1,771) Non-deductible compensation 3,012 2,775 890 Non-deductible and other items 3,993 1,719 387 Tax shortfall (windfall) on equity-based compensation, net 673 6,307 1,175 Change in valuation allowance 11,391 15,421 86,539 U.S. tax loss carryback rate differential — — (4,902) Total tax expense (benefit) $ 110,516 $ 34,456 $ (5,209) Effective tax rate(1) 33 % 79 % 1 % ______________________________________ (1) The effective tax rate during the years ended December 31, 2022, 2021 and 2020, were impacted by (gains) and losses of $21.0 million, $61.6 million and $(2.9) million, respectively, incurred in jurisdictions in which we are not subject to taxes and therefore do not generate any income tax benefits or where there are valuation allowances offsetting the corresponding deferred tax assets. The effective tax rate for the United States is approximately 10%, 2% and 7% for the years ended December 31, 2022, 2021 and 2020, respectively. The effective tax rate in the United States is impacted by the effect of non-deductible expenditures and equity-based compensation tax shortfalls and tax windfalls equal to the difference between the income tax benefit recognized for financial statement reporting purposes compared to the income tax benefit realized for tax return purposes. For the years ended December 31, 2022, 2021 and 2020, our effective tax rate in the United States is impacted by changes in valuation allowances on a portion of our deferred tax assets totaling $(12.3) million, $6.6 million and $96.6 million, respectively. The effective tax rate for Ghana is approximately 35%, 35% and 35% for the years ended December 31, 2022, 2021 and 2020, respectively. The effective tax rate in Ghana is impacted by non-deductible expenditures. The effective tax rate for Equatorial Guinea is approximately 36%, 35% and 34% for the years ended December 31, 2022, 2021 and 2020, respectively, and is impacted by non-deductible expenditures. Our operations in other foreign jurisdictions have a 0% effective tax rate because they reside in countries with a 0% statutory rate or we have incurred losses in those countries and have full valuation allowances against the corresponding net deferred tax assets. Deferred tax assets and liabilities, which are computed on the estimated income tax effect of temporary differences between financial and tax bases in assets and liabilities, are determined using the tax rates expected to be in effect when taxes are actually paid or recovered. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The tax effects of significant temporary differences giving rise to deferred tax assets and liabilities are as follows: December 31, 2022 2021 (In thousands) Deferred tax assets: Foreign capitalized operating expenses $ 196,018 $ 172,836 Foreign net operating losses 19,297 35,518 United States net operating losses 81,040 109,094 United States deferred interest expense 17,421 6,725 Equity compensation 7,916 12,424 Unrealized derivative losses — 21,710 Asset retirement obligation and other 67,083 55,859 Total deferred tax assets 388,775 414,166 Valuation allowance (312,968) (318,343) Total deferred tax assets, net 75,807 95,823 Deferred tax liabilities: Depletion, depreciation and amortization related to property and equipment (512,019) (806,861) Other deferred tax liabilities (32,233) — Total deferred tax liabilities (544,252) (806,861) Net deferred tax liability $ (468,445) $ (711,038) The Company has foreign net operating loss carryforwards of $61.6 million, that will not expire. Additionally, the Company has $385.9 million of United States net operating loss that will not expire. All of these losses currently have offsetting valuation allowances. The Company is open to tax examinations in the United States for federal income tax return years 2019 through 2021 in Ghana to federal income tax return years 2019 through 2021, and in Equatorial Guinea to federal income tax return years 2019 through 2021. As of December 31, 2022, 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. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share In the calculation of basic net income per share, participating securities are allocated earnings based on actual dividend distributions received plus a proportionate share of undistributed net income, if any. We calculate basic net income per share under the two‑class method. Diluted net income (loss) per share is calculated under both the two-class method and the treasury stock method and the more dilutive of the two calculations is presented. The computation of diluted net income (loss) per share reflects the potential dilution that could occur if all outstanding awards under our LTIP were converted into shares of common stock or resulted in the issuance of shares of common stock that would then share in the earnings of the Company. During periods in which the Company realizes a loss from continuing operations securities would not be dilutive to net loss per share and conversion into shares of common stock is assumed not to occur. Basic net income (loss) per share is computed as (i) net income (loss), (ii) less income allocable to participating securities (iii) divided by weighted average basic shares outstanding. The Company’s diluted net income (loss) per share is computed as (i) basic net income (loss), (ii) plus diluted adjustments to income allocable to participating securities (iii) divided by weighted average diluted shares outstanding. Years Ended December 31, 2022 2021 2020 (In thousands, except per share data) Numerator: Net income (loss) allocable to common stockholders $ 226,551 $ (77,836) $ (411,586) Denominator: Weighted average number of shares outstanding: Basic 455,346 416,943 405,212 Restricted stock units(1) 19,511 — — Diluted 474,857 416,943 405,212 Net income (loss) per share: Basic $ 0.50 $ (0.19) $ (1.02) Diluted $ 0.48 $ (0.19) $ (1.02) ______________________________________ (1) Our restricted stock units are not considered to be participating securities and, therefore, are excluded from the basic net income (loss) per share calculation. (2) For the years ended December 31, 2022, 2021 and 2020, we excluded 0.1 million, 19.0 million and 6.1 million outstanding restricted stock units, respectively, from the computations of diluted net income per share because the effect would have been anti‑dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, 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 financial position; however, an unfavorable outcome could have a material adverse effect on our results from operations for a specific interim period or year. We currently have a commitment to drill three development wells and one exploration well in Equatorial Guinea. In Mauritania and Senegal, we have a $200.2 million FPSO Contract Liability related to the deferred sale of the Greater Tortue FPSO. Performance Obligations As of December 31, 2022 and 2021, the Company had performance bonds totaling $195.5 million and $195.5 million, respectively, for our supplemental bonding requirements stipulated by the BOEM and $9.7 million and $3.5 million, respectively, to third parties related to costs anticipated for the plugging and abandonment of certain wells and the removal of certain facilities in our U.S. Gulf of Mexico fields. |
Additional Financial Informatio
Additional Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Additional Financial Information | |
Additional Financial Information | Additional Financial Information Accrued Liabilities Accrued liabilities consisted of the following: December 31, 2022 2021 (In thousands) Accrued liabilities: Exploration, development and production $ 80,598 $ 61,881 Revenue payable 26,087 31,986 Current asset retirement obligations 1,732 3,222 General and administrative expenses 32,069 27,980 Interest 44,740 31,117 Income taxes 127,183 69,392 Taxes other than income 1,524 2,854 Derivatives 6,440 19,302 Other 4,833 2,936 $ 325,206 $ 250,670 Gain on sale of assets During the year ended December 31, 2020, we recognized a $92.1 million gain related to the farm down of interests in blocks offshore Sao Tome & Principe, Suriname and Namibia to Shell. During the fourth quarter of 2022, we received formal notice from Shell that an appraisal plan for one well had been submitted under the terms of Shell’s Petroleum Agreement with Namibia. As a result, we recognized an additional $50.0 million gain related to the additional proceeds of $50.0 million received in the fourth quarter of 2022 related to the transaction with Shell. Other Expenses, net Other expenses, net incurred during the period is comprised of the following: Years Ended December 31, 2022 2021 2020 (In thousands) Loss on disposal of inventory $ 1,521 $ 1,239 $ 8,607 Gain on insurance settlements (7,000) — — (Gain) loss on asset retirement obligations liability settlements (3,278) 6,351 1,966 Restructuring charges (4) 2,584 16,474 Other, net (293) (63) 10,755 Other expenses, net $ (9,054) $ 10,111 $ 37,802 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Kosmos is engaged in a single line of business, which is the exploration, development and production of oil and gas. At December 31, 2022, the Company had operations in four geographic reporting segments: Ghana, Equatorial Guinea, Mauritania/Senegal and the U.S. Gulf of Mexico. To assess performance of the reporting segments, the Chief Operating Decision Maker reviews capital expenditures. Capital expenditures, as defined by the Company, may not be comparable to similarly titled measures used by other companies and should be considered in conjunction with our consolidated financial statements and notes thereto. Financial information for each area is presented below: Ghana(2) Equatorial Guinea Mauritania / Senegal U.S. Gulf of Mexico(3) Corporate & Other Eliminations Total (in thousands) Years ended December 31, 2022 Revenues and other income: Oil and gas revenue $ 1,350,962 $ 346,783 $ — $ 547,610 $ — $ — $ 2,245,355 Gain on sale of assets — — — 471 50,000 — 50,471 Other income, net 428 3,350 — 2,405 386,002 (388,236) 3,949 Total revenues and other income 1,351,390 350,133 — 550,486 436,002 (388,236) 2,299,775 Costs and expenses: Oil and gas production 206,486 90,602 — 105,968 — — 403,056 Facilities insurance modifications, net 6,243 — — — — — 6,243 Exploration expenses 14,987 7,378 82,526 22,763 6,576 — 134,230 General and administrative 15,310 6,703 9,798 15,794 180,594 (127,343) 100,856 Depletion, depreciation and amortization 289,058 53,765 412 153,407 1,614 — 498,256 Impairment of long-lived assets 450,357 — — (388) — — 449,969 Interest and other financing costs, net(1) 64,620 (2,494) (69,644) 11,180 114,598 — 118,260 Derivatives, net — — — — 260,892 — 260,892 Other expenses, net 233,785 8,397 (1,178) 10,339 496 (260,893) (9,054) Total costs and expenses 1,280,846 164,351 21,914 319,063 564,770 (388,236) 1,962,708 Income (loss) before income taxes 70,544 185,782 (21,914) 231,423 (128,768) — 337,067 Income tax expense (benefit) 28,091 72,814 — (1,010) 10,621 — 110,516 Net income (loss) $ 42,453 $ 112,968 $ (21,914) $ 232,433 $ (139,389) $ — $ 226,551 Consolidated capital expenditures $ 98,540 $ 36,036 $ 407,982 $ 111,016 $ (41,986) $ — $ 611,588 As of December 31, 2022 Property and equipment, net $ 1,202,937 $ 396,737 $ 1,396,884 $ 829,242 $ 16,847 $ — $ 3,842,647 Total assets $ 2,886,242 $ 1,463,211 $ 2,026,776 $ 3,695,641 $ 19,554,236 $ (25,046,118) $ 4,579,988 ______________________________________ (1) Interest expense is recorded based on actual third-party and intercompany debt agreements. Capitalized interest is recorded on the business unit where the assets reside. (2) Includes activity related to the interest pre-empted by Tullow prior to the March 17, 2022 closing date of the Tullow pre-emption transaction. Additionally, cash consideration of $118.2 million is included as a reduction in Consolidated capital expenditures for the year ended December 31, 2022. (3) Includes activity related to our acquisition of an additional interest in the Kodiak oil field commencing June 9, 2022, the acquisition date. Additionally, cash consideration paid of $29.0 million is included in Consolidated capital expenditures for the year ended December 31, 2022. Ghana (2) Equatorial Guinea Mauritania / Senegal U.S. Gulf of Mexico Corporate & Other Eliminations Total (in thousands) Year ended December 31, 2021 Revenues and other income: Oil and gas revenue $ 644,232 $ 260,520 $ — $ 427,261 $ — $ — $ 1,332,013 Gain on sale of assets — — — — 1,564 — 1,564 Other income, net 6 — — 1,279 395,073 (396,096) 262 Total revenues and other income 644,238 260,520 — 428,540 396,637 (396,096) 1,333,839 Costs and expenses: Oil and gas production 151,079 93,032 — 101,895 — — 346,006 Facilities insurance modifications, net (1,586) — — — — — (1,586) Exploration expenses 1,527 5,700 10,639 41,230 6,286 — 65,382 General and administrative 12,179 4,343 8,601 17,665 172,869 (124,128) 91,529 Depletion, depreciation and amortization 240,901 56,468 61 168,142 1,649 — 467,221 Interest and other financing costs, net(1) 51,279 (1,661) (44,831) 15,875 109,493 (1,784) 128,371 Derivatives, net — — — — 270,185 — 270,185 Other expenses, net 206,466 41,891 (2,189) 30,118 4,010 (270,185) 10,111 Total costs and expenses 661,845 199,773 (27,719) 374,925 564,492 (396,097) 1,377,219 Income (loss) before income taxes (17,607) 60,747 27,719 53,615 (167,855) 1 (43,380) Income tax expense (benefit) (4,290) 37,487 — (4,958) 6,217 — 34,456 Net income (loss) $ (13,317) $ 23,260 $ 27,719 $ 58,573 $ (174,072) $ 1 $ (77,836) Consolidated capital expenditures $ 575,472 $ 77,364 $ 170,690 $ 96,897 $ 3,791 $ — $ 924,214 As of December 31, 2021 Property and equipment, net $ 1,885,116 $ 460,975 $ 918,683 $ 901,392 $ 17,821 $ — $ 4,183,987 Total assets $ 3,125,835 $ 911,159 $ 1,346,622 $ 3,258,264 $ 17,108,138 $ (20,809,367) $ 4,940,651 ______________________________________ (1) Interest expense is recorded based on actual third-party and intercompany debt agreements. Capitalized interest is recorded on the business unit where the assets reside. (2) Includes activity related to our acquisition of additional interests in Ghana commencing October 13, 2021, the acquisition date. Additionally, the acquisition purchase price of $465.4 million is included in Consolidated capital expenditures. Ghana Equatorial Guinea Mauritania / Senegal U.S. Gulf of Mexico Corporate & Other Eliminations Total (in thousands) Year ended December 31, 2020 Revenues and other income: Oil and gas revenue $ 366,515 $ 152,501 $ — $ 285,017 $ — $ — $ 804,033 Gain on sale of assets — — — 84 92,079 — 92,163 Other income, net 2 — — 280 120,135 (120,415) 2 Total revenues and other income 366,517 152,501 — 285,381 212,214 (120,415) 896,198 Costs and expenses: Oil and gas production 169,357 80,813 — 88,307 — — 338,477 Facilities insurance modifications, net 13,161 — — — — — 13,161 Exploration expenses 182 8,290 8,189 26,792 41,163 — 84,616 General and administrative 13,506 4,865 7,464 12,607 129,801 (96,101) 72,142 Depletion, depreciation and amortization 235,772 64,786 61 181,898 3,345 — 485,862 Impairment of long-lived assets — — — 153,959 — — 153,959 Interest and other financing costs, net(1) 54,530 (1,248) (27,339) 17,373 73,612 (7,134) 109,794 Derivatives, net — — — — 17,180 — 17,180 Other expenses, net (27,925) 2,281 4,829 54,485 21,312 (17,180) 37,802 Total costs and expenses 458,583 159,787 (6,796) 535,421 286,413 (120,415) 1,312,993 Income (loss) before income taxes (92,066) (7,286) 6,796 (250,040) (74,199) — (416,795) Income tax expense (benefit) (30,486) 2,428 — 26,061 (3,212) — (5,209) Net income (loss) $ (61,580) $ (9,714) $ 6,796 $ (276,101) $ (70,987) $ — $ (411,586) Consolidated capital expenditures $ 44,146 $ 38,126 $ 126,803 $ 123,197 $ (58,293) $ — $ 273,979 As of December 31, 2020 Property and equipment, net $ 1,293,372 $ 426,365 $ 580,920 $ 998,204 $ 22,052 $ — $ 3,320,913 Total assets $ 1,397,802 $ 689,222 $ 823,411 $ 3,171,851 $ 12,654,827 $ (14,869,520) $ 3,867,593 ______________________________________ (1) Interest expense is recorded based on actual third-party and intercompany debt agreements. Capitalized interest is recorded on the business unit where the assets reside. Years Ended December 31, 2022 2021 2020 (In thousands) Consolidated capital expenditures: Consolidated Statements of Cash Flows - Investing activities: Oil and gas assets $ 787,297 $ 472,631 $ 379,593 Acquisition of oil and gas properties 22,078 465,367 — Proceeds on sale of assets (168,703) (6,354) (99,118) Adjustments: Changes in capital accruals 396 (18,534) (42,315) Exploration expense, excluding unsuccessful well costs and leasehold impairments(1) 47,289 46,563 61,459 Capitalized interest (84,343) (46,098) (25,013) Other 7,574 10,639 (627) Total consolidated capital expenditures $ 611,588 $ 924,214 $ 273,979 ______________________________________ (1) Unsuccessful well costs are included in oil and gas assets when incurred. |
Condensed Parent Company Financ
Condensed Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Condensed Parent Company Financial Statements | Schedule I—Condensed Parent Company Financial Statements Under the terms of agreements governing the indebtedness of subsidiaries of Kosmos Energy Ltd. for 2022, 2021 and 2020 (collectively “KEL,” the “Parent Company”), such subsidiaries may be restricted from making dividend payments, loans or advances to KEL. Schedule I of Article 5‑04 of Regulation S‑X requires the condensed financial information of the Parent Company to be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The following condensed parent‑only financial statements of KEL have been prepared in accordance with Rule 12‑04, Schedule I of Regulation S‑X and included herein. The Parent Company’s 100% investment in its subsidiaries has been recorded using the equity basis of accounting in the accompanying condensed parent‑only financial statements. The condensed financial statements should be read in conjunction with the consolidated financial statements of Kosmos Energy Ltd. and subsidiaries and notes thereto. KOSMOS ENERGY LTD. CONDENSED PARENT COMPANY BALANCE SHEETS (In thousands, except share data) December 31, 2022 2021 Assets Current assets: Cash and cash equivalents $ 2,286 $ 6,693 Derivatives receivable - related party 413 1,474 Prepaid expenses and other 1,051 957 Derivatives — 5,689 Derivatives—related party — 1,217 Total current assets 3,750 16,030 Investment in subsidiaries at equity 2,403,785 2,092,915 Long-term note receivable from subsidiary — — Deferred financing costs, net of accumulated amortization of $13,263 and $19,912 at December 31, 2022 and December 31, 2021, respectively 4,640 1,090 Derivatives — 1,026 Derivatives—related party — 84 Restricted cash 305 305 Long-term deferred tax asset 461 18,687 Total assets $ 2,412,941 $ 2,130,137 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 14 $ 242 Accounts payable to subsidiaries 114,312 80,595 Accrued liabilities 27,500 32,239 Derivatives — 1,217 Derivatives - related party — 5,689 Total current liabilities 141,826 119,982 Long-term debt, net 1,483,267 1,479,808 Derivatives — 84 Derivatives - related party — 1,026 Other long-term liabilities — — Shareholders’ equity: Preference shares, $0.01 par value; 200,000,000 authorized shares; zero issued at December 31, 2022 and December 31, 2021 — — Common stock, $0.01 par value; 2,000,000,000 authorized shares; 500,161,421 and 496,152,331 issued at December 31, 2022 and December 31, 2021, respectively 5,002 4,962 Additional paid-in capital 2,505,694 2,473,674 Accumulated deficit (1,485,841) (1,712,392) Treasury stock, at cost, 44,263,269 shares at December 31, 2022 and 2021, respectively (237,007) (237,007) Total shareholders’ equity 787,848 529,237 Total liabilities and shareholders’ equity $ 2,412,941 $ 2,130,137 CONDENSED PARENT COMPANY STATEMENTS OF OPERATIONS (In thousands) Years Ended December 31, 2022 2021 2020 Revenues and other income: Oil and gas revenue $ — $ — $ — Other income—related party 75,740 20,307 2,642 Total revenues and other income 75,740 20,307 2,642 Costs and expenses: General and administrative 44,180 38,810 40,162 General and administrative recoveries—related party (3,772) 79 4,112 Interest and other financing costs, net 123,247 98,649 59,200 Interest and other financing costs, net—related party — (2,446) (5,889) Derivatives, net 75,740 20,307 2,642 Other expenses, net 17 (61) — Equity in (earnings) losses of subsidiaries (415,546) (57,195) 315,423 Total costs and expenses (176,134) 98,143 415,650 Income (loss) before income taxes 251,874 (77,836) (413,008) Income tax expense (benefit) 25,323 — (1,422) Net income (loss) $ 226,551 $ (77,836) $ (411,586) Dividends declared per common share $ — $ — $ 0.0452 CONDENSED PARENT COMPANY STATEMENTS OF CASH FLOWS (In thousands) Years Ended December 31, 2022 2021 2020 Operating activities Net income (loss) $ 226,551 $ (77,836) $ (411,586) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in (earnings) losses of subsidiaries (415,546) (57,195) 315,423 Equity-based compensation 34,546 31,651 32,706 Depreciation and amortization 6,359 5,638 8,644 Deferred income taxes 18,034 — (1,422) Other income—related party (4,353) 6,582 (2,642) Change in fair value on derivatives 75,741 20,307 2,642 Cash settlements on derivatives (70,327) (28,363) — Loss on extinguishment of debt 192 4,403 — Changes in assets and liabilities: Decrease in receivables 306 134 856 (Increase) decrease in prepaid expenses and other (94) (49) (480) Decrease due to/from related party 33,214 218,008 162,897 Increase (decrease) in accounts payable and accrued liabilities (4,159) 18,003 2,509 Net cash provided by (used in) operating activities (99,536) 141,283 109,547 Investing activities Investment in subsidiaries 104,676 (1,001,494) (190,089) Net cash provided by (used in) investing activities 104,676 (1,001,494) (190,089) Financing activities Borrowings under long-term debt — 100,000 100,000 Payments on long-term debt — (200,000) — Net proceeds from issuance of senior notes — 839,375 — Net proceeds from issuance of common stock — 136,006 — Tax withholdings on restricted stock units (2,753) (1,100) (4,947) Dividends (655) (512) (19,271) Deferred financing costs (6,139) (8,031) (496) Net cash provided by (used in) financing activities (9,547) 865,738 75,286 Net increase (decrease) in cash and cash equivalents (4,407) 5,527 (5,256) Cash, cash equivalents and restricted cash at beginning of period 6,998 1,471 6,727 Cash, cash equivalents and restricted cash at end of period $ 2,591 $ 6,998 $ 1,471 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts For the Years Ended December 31, 2022, 2021 and 2020 Additions Description Balance January 1, Charged to Costs and Expenses Charged To Other Accounts Deductions From Reserves Balance December 31, 2022 Allowance for credit losses $ 5,189 $ 2,509 $ (687) $ — $ 7,011 Allowance for deferred tax assets $ 318,343 $ (5,616) $ — $ — $ 312,727 2021 Allowance for credit losses $ 5,675 $ 1,019 $ (1,505) $ — $ 5,189 Allowance for deferred tax assets $ 288,288 $ 30,055 $ — $ — $ 318,343 2020 Allowance for credit losses $ 2,748 $ 1,800 $ 1,127 $ — $ 5,675 Allowance for deferred tax assets $ 201,749 $ 86,539 $ — $ — $ 288,288 Schedules other than Schedule I and Schedule II have been omitted because they are not applicable or the required information is presented in the consolidated financial statements or the notes to consolidated financial statements. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Kosmos Energy Ltd. and its wholly-owned subsidiaries. They also include the Company’s share of the undivided interest in certain assets, liabilities, revenues and expenses. Investments in corporate joint ventures, which we exercise significant influence over, are accounted for using the equity method of accounting. All intercompany transactions have been eliminated. Investments in companies that are partially owned by the Company are integral to the Company’s operations. The other parties, who also have an equity interest in these companies, are independent third parties that share in the business results according to their ownership. Kosmos does not invest in these companies in order to remove liabilities from its balance sheet. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These estimates could change materially if different information or assumptions were used. We base our assumptions and estimates on historical experience and other sources that we believe to be reasonable at the time. Actual results could differ from these estimates. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform with the current year presentation. Such reclassifications had no significant impact on our reported net income (loss), current assets, total assets, current liabilities, total liabilities, shareholders’ equity or cash flows. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted CashCash and cash equivalents includes demand deposits and funds invested in highly liquid instruments with original maturities of three months or less at the date of purchase. When our net leverage ratio exceeds 2.50x, we are required under the Facility to maintain a restricted cash balance that is sufficient to meet the payment of interest and fees for the next six-month period on the 7.125% Senior Notes, the 7.750% Senior Notes, and the 7.500% Senior Notes plus the Corporate Revolver or the Facility, whichever is greater. As of December 31, 2021, we exceeded this ratio and restricted approximately $42.9 million in cash to meet our requirements. As of March 31, 2022, our net leverage ratio was below 2.50x, therefore in May 2022, we released $59.1 million from restricted cash upon submission of the net leverage test as of March 31, 2022. As of December, 31, 2022 our net leverage ratio remained below 2.50x. |
Receivables | ReceivablesOur receivables consist of joint interest billings, oil and gas sales, related party and other receivables. Receivables from joint interest owners are stated at amounts due, net of any allowances for doubtful accounts. As required by ASU 2016-13, "Measurement of Credit Losses on Financial Instruments", we determine our allowance based on historical experience, current conditions and reasonable and supportable forecasts by considering the length of time past due, future net revenues of the debtor’s ownership interest in oil and natural gas properties we operate, and the owner’s ability to pay its obligation, among other things. |
Inventories | InventoriesThe 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 net realizable value. We recorded write downs of $1.5 million, $1.2 million and $8.6 million during the years ended December 31, 2022, 2021 and 2020 for materials and supplies inventories as Other expenses, net in the consolidated statements of operations and other in the consolidated statements of cash flows.Hydrocarbon inventory is carried at the lower of cost, using the weighted average cost method, or net realizable value. Hydrocarbon inventory costs include expenditures and other charges 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. |
Leases | Leases We account for leases in accordance with ASC Topic 842, Leases, (“ASC 842”). We determine if an arrangement is a lease at contract inception. In the normal course of business, the Company enters into various lease agreements for real estate and equipment related to its exploration, development and production activities that are currently accounted for as operating leases. Operating leases are included in Other assets, Accrued liabilities, and Other long-term liabilities on our consolidated balance sheets. The lease liabilities are initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. We monitor for events or changes in circumstances that require a reassessment of a lease. When a reassessment results in the re-measurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in profit or loss. |
Exploration and Development Costs | Exploration and Development Costs The Company follows the successful efforts method of accounting for its oil and gas properties. Acquisition costs for proved and unproved properties are capitalized when incurred. Costs of unproved properties are transferred to proved properties when a determination that proved reserves have been found. Exploration costs, including geological and geophysical costs and costs of carrying unproved properties, are expensed as incurred. Exploratory drilling costs are capitalized when incurred. If exploratory wells are determined to be commercially unsuccessful or dry holes, the applicable costs are expensed and recorded in exploration expense on the consolidated statement of operations. Costs incurred to drill and equip development wells, including unsuccessful development wells, are capitalized. Costs incurred to operate and maintain wells and equipment and to lift oil and natural gas to the surface are expensed as oil and gas production expense. The Company evaluates unproved property periodically for impairment. The impairment assessment considers results of exploration activities, commodity price outlooks, planned future sales or expiration of all or a portion of such projects. If it is determined that future appraisal drilling or development activities are unlikely to occur, the associated capitalized costs are recorded as exploration expense in the consolidated statement of operations. |
Depletion, Depreciation and Amortization | Depletion, Depreciation and Amortization Proved properties and support equipment and facilities are depleted using the unit‑of‑production method based on estimated proved oil and natural gas reserves. Capitalized exploratory drilling costs that result in a discovery of proved reserves and development costs are depleted using the unit‑of‑production method based on estimated proved developed oil and natural gas reserves for the related field. Depreciation and amortization of other property is computed using the straight-line method over the assets’ estimated useful lives (not to exceed the lease term for leasehold improvements), ranging from one Years Leasehold improvements 1 to 8 Office furniture, fixtures and computer equipment 3 to 7 Amortization of deferred financing costs is computed using the straight‑line method over the life of the related debt. |
Capitalized Interest | Capitalized Interest Interest costs from external borrowings are capitalized on major projects with an expected construction period of one year or longer. Capitalized interest is added to the cost of the underlying asset and is depleted on the unit‑of‑production method in the same manner as the underlying assets. |
Asset Retirement Obligations | Asset Retirement Obligations The Company accounts for asset retirement obligations as required by ASC 410—Asset Retirement and Environmental Obligations. Under these standards, the fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. If a reasonable estimate of fair value cannot be made in the period the asset retirement obligation is incurred, the liability is recognized when a reasonable estimate of fair value can be made. If a tangible long‑lived asset with an existing asset retirement obligation is acquired, a liability for that obligation is recognized at the asset’s acquisition or in service date. In addition, a liability for the fair value of a conditional asset retirement obligation is recorded if the fair value of the liability can be reasonably estimated. We capitalize the asset retirement costs by increasing the carrying amount of the related long‑lived asset by the same amount as the liability. We record increases in the discounted abandonment liability resulting from the passage of time in depletion, depreciation and amortization in the consolidated statement of operations. Estimating the future restoration and removal costs requires management to make estimates and judgments because most of the removal obligations are many years in the future and contracts and regulations often have vague descriptions of what constitutes removal. Additionally, asset removal technologies and costs are constantly changing, as are regulatory, political, environmental, safety and public relations considerations. Inherent in the present value calculation are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligations, a corresponding adjustment is made to the oil and gas property balance. |
Acquisition Accounting | Acquisition Accounting The purchase price in an acquisition (business combination or asset acquisition) is allocated to the assets acquired and liabilities assumed based on their relative fair values as of the acquisition date, which may occur many months after the deal announcement date. Therefore, while the consideration to be paid may be fixed, the fair value of the assets acquired, and liabilities assumed is subject to change during the period between the announcement date and the acquisition date. The most significant estimates in the allocation typically relate to the value assigned to future recoverable oil and natural gas reserves and unproved properties. As the allocation of the purchase price is subject to significant estimates and subjective judgments, the accuracy of this assessment is inherently uncertain. |
Impairment of Long-lived Assets | Impairment of Long‑lived Assets We review our long‑lived assets for impairment when changes in circumstances indicate that the carrying amount of an asset may not be recoverable. ASC 360 — Property, Plant and Equipment requires an impairment loss to be recognized if the carrying amount of a long‑lived asset is not recoverable and exceeds its fair value. The carrying amount of a long‑lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment shall be based on the carrying amount of the asset at the date it is tested for recoverability, whether in use or under development. Assets to be disposed of and assets not expected to provide any future service potential to us are recorded at the lower of carrying amount or fair value. Oil and gas properties are grouped in accordance with ASC 932 — Extractive Activities-Oil and Gas. The basis for grouping is a reasonable aggregation of properties typically by field or by logical grouping of assets with significant shared infrastructure. For long-lived assets whereby the carrying value exceeds the estimated future undiscounted cash flows, the carrying amount is reduced to fair value. Fair value is generally estimated using the income approach described in the ASC 820 — Fair Value Measurement. If applicable, we utilize prices and other relevant information generated by market transactions involving assets and liabilities that are identical or comparable to the item being measured as the basis for determining fair value. The expected future cash flows used for impairment reviews and related fair value measurements are typically based on judgmental assessments of future production, pricing estimates, capital and operating costs, market-based weighted average cost of capital, and risk adjustment factors applied to reserves. These assumptions are applied to develop future cash flow projections that are then discounted to estimated fair value, using a market-based weighted-average cost of capital. Although we base the fair value estimate of each asset group on assumptions we believe to be reasonable, those assumptions are inherently unpredictable and uncertain, and actual results could differ from the estimate. Negative revisions of estimated reserve quantities, increases in future cost estimates, divestiture of a significant component of the asset group, or sustained decreases in crude oil prices could lead to a reduction in expected future cash flows and possibly an additional impairment of long-lived assets in future periods. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging ActivitiesWe utilize oil derivative contracts to mitigate our exposure to commodity price risk associated with our anticipated future oil production. These derivative contracts consist of collars, put options, call options and swaps. We also have used interest rate derivative contracts to mitigate our exposure to interest rate fluctuations related to our long‑term debt. Our derivative financial instruments are recorded on the balance sheet as either assets or liabilities and are measured at fair value. We do not apply hedge accounting to our derivative contracts. |
Estimates of Proved Oil and Natural Gas Reserves | Estimates of Proved Oil and Natural Gas Reserves Reserve quantities and the related estimates of future net cash flows affect our periodic calculations of depletion and assessment of impairment of our oil and natural gas properties. Proved oil and natural gas reserves are the estimated quantities of crude oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be recoverable in future periods from known reservoirs under existing economic and operating conditions. As additional proved reserves are discovered, reserve quantities and future cash flows will be estimated by independent petroleum consultants and prepared in accordance with guidelines established by the SEC and the FASB. The accuracy of these reserve estimates is a function of: • the engineering and geological interpretation of available data; • estimates of the amount and timing of future operating cost, production taxes, development cost and workover cost; • the accuracy of various mandated economic assumptions; and • the judgments of the persons preparing the estimates. |
Revenue Recognition | Revenue Recognition We recognize revenues on the volumes of hydrocarbons sold to a purchaser. The volumes sold may be more or less than the volumes to which we are entitled based on our ownership interest in the property. These differences result in a condition known in the industry as a production imbalance. A receivable or liability is recognized only to the extent that we have an imbalance on a specific property greater than the expected remaining proved reserves on such property. As of December 31, 2022 and 2021, we had no oil and gas imbalances recorded in our consolidated financial statements. Our oil and gas revenues are recognized when hydrocarbons have been sold to a purchaser at a fixed or determinable price, title has transferred and collection is probable. Certain revenues are based on provisional price contracts which contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from oil sales at the spot price on the date of sale. The embedded derivative, which is not designated as a hedge, is marked to market through oil and gas revenue each period until the final settlement occurs, which generally is limited to the month after the sale. |
Equity-based Compensation | Equity‑based Compensation For equity‑based compensation awards, compensation expense is recognized in the Company’s financial statements over the awards’ vesting periods based on their grant date fair value. The Company utilizes (i) the closing stock price on the date of grant to determine the fair value of service vesting restricted stock units and (ii) a Monte Carlo simulation to determine the fair value of restricted stock units with a combination of market and service vesting criteria. Forfeitures are recognized in the period in which they occur. |
Restructuring Charges | Restructuring Charges The Company accounts for restructuring charges and related termination benefits in accordance with ASC 712-Compensation-Nonretirement Postemployment Benefits. Under this standard, the costs associated with termination benefits are recorded during the period in which the liability is incurred. During the years ended December 31, 2022, 2021 and 2020, we recognized zero, $2.6 million and $16.5 million, respectively, in restructuring charges for employee severance and related benefit costs incurred as part of a corporate reorganization in Other expenses, net in the consolidated statement of operations. |
Income Taxes | Income Taxes The Company accounts for income taxes as required by ASC 740—Income Taxes. Under this method, deferred income taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. On a quarterly basis, management evaluates the need for and adequacy of valuation allowances based on the expected realizability of the deferred tax assets and adjusts the amount of such allowances, if necessary. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the tax authorities, based on the technical merits of the position. Accordingly, we measure tax benefits from such positions based on the most likely outcome to be realized. |
Foreign Currency Translation | Foreign Currency Translation The U.S. dollar is the functional currency for all of the Company’s material foreign operations. Foreign currency transaction gains and losses and adjustments resulting from translating monetary assets and liabilities denominated in foreign currencies are included in other expenses. Cash balances held in foreign currencies are not significant, and as such, the effect of exchange rate changes is not material to any reporting period. |
Concentration of Credit Risk | Concentration of Credit Risk Our revenue can be materially affected by current economic conditions and the price of oil and natural gas. However, based on the current demand for crude oil and natural gas and the fact that alternative purchasers are readily available, we believe that the loss of our marketing agents and/or any of the purchasers identified by our marketing agents would not have a long‑term material adverse effect on our financial position or results of international operations. The continued economic disruption resulting from the COVID-19 pandemic, Russia’s invasion of Ukraine, a potential global recession, and other varying macroeconomic conditions could materially impact the Company's business in future periods. Any potential disruption will depend on the duration and intensity of these events, which are highly uncertain and cannot be predicted at this time. |
Recent Accounting Standards | Recent Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848),” which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the cessation of the LIBOR. The guidance was amended effective October 5, 2022 by ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, to extend the sunset date of Topic 848 and can be applied prospectively through December 31, 2024. As we implement the cessation of LIBOR into our current contracts and hedging relationships, the Company is evaluating whether to apply any of these expedients and, if elected, will adopt these standards when LIBOR is discontinued. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of cash and cash equivalents | December 31, 2022 2021 2020 (In thousands) Cash and cash equivalents $ 183,405 $ 131,620 $ 149,027 Restricted cash - current — 42,971 195 Restricted cash - long-term 3,416 305 542 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 186,821 $ 174,896 $ 149,764 |
Schedule of estimated useful lives of other property | Depreciation and amortization of other property is computed using the straight-line method over the assets’ estimated useful lives (not to exceed the lease term for leasehold improvements), ranging from one Years Leasehold improvements 1 to 8 Office furniture, fixtures and computer equipment 3 to 7 |
Schedule of oil and gas revenue | Oil and gas revenue is composed of the following: Years Ended December 31, 2022 2021 2020 (In thousands) Revenues from contract with customer - Equatorial Guinea $ 349,443 $ 257,628 $ 149,033 Revenues from contract with customer - Ghana 1,362,875 654,644 375,603 Revenues from contract with customers - U.S. Gulf of Mexico 547,610 427,261 285,017 Provisional oil sales contracts (14,573) (7,520) (5,620) Oil and gas revenue $ 2,245,355 $ 1,332,013 $ 804,033 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price allocation was based on the estimated fair value of identifiable assets acquired and liabilities assumed. Purchase Price Allocation (in thousands) Fair value of assets acquired: Proved oil and gas properties $ 718,159 Accounts receivable and other 95,847 Total assets acquired $ 814,006 Fair value of liabilities assumed: Asset retirement obligations $ 28,342 Accounts payable and accrued liabilities 113,704 Deferred tax liabilities 206,593 Total liabilities assumed $ 348,639 Purchase price: Cash consideration paid $ 455,886 Transaction related costs 9,481 Total purchase price $ 465,367 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment is stated at cost and consisted of the following: December 31, 2022 2021 (In thousands) Oil and gas properties: Proved properties $ 6,953,435 $ 6,725,453 Unproved properties 341,334 451,454 Total oil and gas properties 7,294,769 7,176,907 Accumulated depletion (3,457,332) (2,999,584) Oil and gas properties, net 3,837,437 4,177,323 Other property 60,730 58,598 Accumulated depreciation (55,520) (51,934) Other property, net 5,210 6,664 Property and equipment, net $ 3,842,647 $ 4,183,987 |
Suspended Well Costs (Tables)
Suspended Well Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Schedule of capitalized exploratory well costs | The following table reflects the Company’s capitalized exploratory well costs on drilled wells as of and during the years ended December 31, 2022, 2021 and 2020. Years Ended December 31, 2022 2021 2020 (In thousands) Beginning balance $ 218,180 $ 186,289 $ 445,790 Additions to capitalized exploratory well costs pending the determination of proved reserves 25,209 31,891 4,001 Reclassification due to determination of proved reserves(1) (34,614) — (263,502) Capitalized exploratory well costs charged to expense(2) (62,818) — — Ending balance $ 145,957 $ 218,180 $ 186,289 ______________________________________ (1) Activity for the year ended December 31, 2022 represents the reclassification of exploratory well costs associated with the Winterfell discovery in Green Canyon Block 944 in the U.S. Gulf of Mexico. Activity for the year ended December 31, 2020 represents the reclassification of exploratory well costs associated with the Greater Tortue Ahmeyim Unit as a result of the execution of the Tortue Phase 1 SPA in February 2020. (2) Represents the impairment of exploratory well costs associated with the BirAllah and Orca Discoveries as a result of the expiration of the exploration period of Block C8 in June 2022. |
Schedule of aging of capitalized exploratory well costs and number of projects for which exploratory well costs were capitalized for more than one year | The following table provides 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: Years Ended December 31, 2022 2021 2020 (In thousands, except well counts) Exploratory well costs capitalized for a period of one year or less $ — $ 20,903 $ — Exploratory well costs capitalized for a period of one to three years 32,770 30,389 66,573 Exploratory well costs capitalized for a period of four to six years 113,187 166,888 119,716 Ending balance $ 145,957 $ 218,180 $ 186,289 Number of projects that have exploratory well costs that have been capitalized for a period greater than one year 2 3 3 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of components of lease cost | The components of lease cost for the years ended December 31, 2022 and 2021 is as follows: December 31, 2022 2021 (In thousands) Operating lease cost $ 3,882 $ 3,971 Variable lease cost 1,825 1,780 Short-term lease cost(1) 13,970 10,790 Total lease cost $ 19,677 $ 16,541 __________________________________ (1) Includes $12.5 million and $9.4 million during the years ended December 31, 2022 and 2021, respectively, of costs associated with short-term drilling contracts. The table below presents supplemental cash flow information related to leases during the years ended December 31, 2022 and 2021: December 31, 2022 2021 (In thousands) Operating cash flows for operating leases $ 7,170 $ 6,460 Investing cash flows for operating leases(1) 12,449 9,350 __________________________________ (1) Represents costs associated with short-term drilling contracts. |
Schedule of other information leases | Other information related to operating leases at December 31, 2022 and 2021, is as follows: December 31 2022 2021 (In thousands, except lease term and discount rate) Balance sheet classifications Other assets (right-of-use assets) $ 16,044 $ 17,578 Accrued liabilities (current maturities of leases) 2,181 1,905 Other long-term liabilities (non-current maturities of leases) 18,007 20,351 Weighted average remaining lease term 6.5 years 7.5 years Weighted average discount rate 9.8 % 9.8 % |
Schedule of future minimum rental commitments | Future minimum rental commitments under our leases at December 31, 2022, are as follows: Operating Leases(1) (In thousands) 2023 $ 4,032 2024 4,104 2025 4,175 2026 4,246 2027 4,192 Thereafter 6,652 Total undiscounted lease payments $ 27,401 Less: Imputed interest (7,213) Total lease liabilities $ 20,188 __________________________________ (1) Does not include purchase commitments for jointly owned fields and facilities where we are not the operator and excludes commitments for exploration activities, including well commitments, in our petroleum contracts. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of debt | December 31, 2022 2021 (In thousands) Outstanding debt principal balances: Facility $ 625,000 $ 1,000,000 7.125% Senior Notes 650,000 650,000 7.750% Senior Notes 400,000 400,000 7.500% Senior Notes 450,000 450,000 GoM Term Loan 145,000 175,000 Total long-term debt 2,270,000 2,675,000 Unamortized deferred financing costs and discounts(1) (44,089) (54,505) Total debt, net 2,225,911 2,620,495 Less: Current maturities of long-term debt (30,000) (30,000) Long-term debt, net $ 2,195,911 $ 2,590,495 ________________________________________ (1) Includes $25.2 million and $31.0 million of unamortized deferred financing costs related to the Facility; $16.7 million and $20.2 million of unamortized deferred financing costs and discounts related to the Senior Notes; and $2.2 million and $3.3 million of unamortized deferred financing costs related to the GoM Term Loan as of December 31, 2022 and December 31, 2021, respectively. |
Schedule of redemption price | On or after April 4, 2022, the Company may redeem all or a part of the 7.125% Senior Notes at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest: Year Percentage On or after April 4, 2022 103.563 % On or after April 4, 2023 101.781 % On or after April 4, 2024 100.000 % Year Percentage On or after November 1, 2023 103.875 % On or after November 1, 2024 101.938 % On or after November 1, 2025 100.000 % Year Percentage On or after March 1, 2024 103.750 % On or after March 1, 2025 101.875 % On or after March 1, 2026 100.000 % |
Schedule of estimated repayments of debt | At December 31, 2022, the estimated repayments of debt during the five fiscal year periods and thereafter are as follows: Payments Due by Year Total 2023 2024 2025 2026 2027 Thereafter (In thousands) Principal debt repayments(1) $ 2,270,000 $ 30,000 $ 30,000 $ 262,548 $ 918,880 $ 578,572 $ 450,000 _______________________________________ (1) Includes the scheduled maturities for outstanding principal debt balances. The scheduled maturities of debt related to the Facility as of December 31, 2022 are based on our level of borrowings and our estimated future available borrowing base commitment levels in future periods. Any increases or decreases in the level of borrowings or increases or decreases in the available borrowing base would impact the scheduled maturities of debt during the next five years and thereafter. |
Schedule of interest and other financing costs, net | Interest and other financing costs, net incurred during the period comprised of the following: Years Ended December 31, 2022 2021 2020 (In thousands) Interest expense $ 180,046 $ 146,706 $ 119,857 Amortization—deferred financing costs 10,401 10,580 9,347 Loss on extinguishment of debt 192 19,625 2,902 Capitalized interest (84,342) (46,098) (25,013) Deferred interest (3,318) (3,401) 2,402 Interest income (12,139) (10,257) (4,773) Other, net 27,420 11,216 5,072 Interest and other financing costs, net $ 118,260 $ 128,371 $ 109,794 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of oil derivative contracts | The following table sets forth the volumes in barrels underlying the Company’s outstanding oil derivative contracts and the weighted average prices per Bbl for those contracts as of December 31, 2022. Volumes and weighted average prices are net of any offsetting derivative contracts entered into. Weighted Average Price per Bbl Term Type of Contract Index MBbl Net Deferred Premium Payable/(Receivable) Sold Put Floor Ceiling 2023: Jan — Dec Three-way collars Dated Brent 6,000 $ 1.34 $ 49.17 $ 71.67 $ 107.58 Jan — Dec Two-way collars Dated Brent 4,000 1.90 — 72.50 117.50 ______________________________________ |
Schedule of derivative instruments by balance sheet location | The following tables disclose the Company’s derivative instruments as of December 31, 2022 and 2021 and gain/(loss) from derivatives during the years ended December 31, 2022, 2021 and 2020. Estimated Fair Value Asset (Liability) December 31, Type of Contract Balance Sheet Location 2022 2021 (In thousands) Derivatives not designated as hedging instruments: Derivative assets: Commodity Derivatives assets—current $ 7,344 $ 5,689 Provisional oil sales Receivables: Oil sales 1,170 (853) Commodity Derivatives assets—long-term 1,725 1,026 Derivative liabilities: Commodity Derivatives liabilities—current (6,773) (65,879) Commodity Derivatives liabilities—long-term (778) (6,298) Total derivatives not designated as hedging instruments $ 2,688 $ (66,315) |
Schedule of derivative instruments by location of gain/(loss) | Amount of Gain/(Loss) Years Ended December 31, Type of Contract Location of Gain/(Loss) 2022 2021 2020 (In thousands) Derivatives not designated as hedging instruments: Provisional oil sales Oil and gas revenue $ (14,573) $ (7,520) $ (5,620) Commodity Derivatives, net (260,892) (270,185) (17,180) Total derivatives not designated as hedging instruments $ (275,465) $ (277,705) $ (22,800) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of company's assets and liabilities that are measured at fair value on a recurring basis | The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2022 and 2021, for each fair value hierarchy level: Fair Value Measurements Using: Quoted Prices in Active Markets for Identical Assets Significant Other Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total (In thousands) December 31, 2022 Assets: Commodity derivatives $ — $ 9,069 $ — $ 9,069 Provisional oil sales — 1,170 — 1,170 Liabilities: Commodity derivatives — (7,551) — (7,551) Total $ — $ 2,688 $ — $ 2,688 December 31, 2021 Assets: Commodity derivatives $ — $ 6,715 $ — $ 6,715 Provisional oil sales — (853) — (853) Liabilities: Commodity derivatives — (72,177) — (72,177) Total $ — $ (66,315) $ — $ (66,315) |
Schedule of carrying values and fair values of financial instruments that are not carried at fair value | The following table presents the carrying values and fair values at December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value (In thousands) 7.125% Senior Notes $ 645,699 $ 558,201 $ 644,572 $ 632,587 7.750% Senior Notes 395,893 335,592 395,131 386,428 7.500% Senior Notes 445,564 361,958 444,892 424,688 GoM Term Loan 145,000 145,000 175,000 175,000 Facility 625,000 625,000 1,000,000 1,000,000 Total $ 2,257,156 $ 2,025,751 $ 2,659,595 $ 2,618,703 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of changes in asset retirement obligations | The following table summarizes the changes in the Company’s asset retirement obligations: December 31, 2022 2021 (In thousands) Asset retirement obligations: Beginning asset retirement obligations $ 325,459 $ 251,421 Liabilities incurred during period 13,696 38,967 Liabilities settled during period (9,277) (8,705) Revisions in estimated retirement obligations (50,600) 22,744 Accretion expense 23,256 21,032 Ending asset retirement obligations $ 302,534 $ 325,459 |
Equity-based Compensation (Tabl
Equity-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Outstanding Restricted Stock Units | The following table reflects the outstanding restricted stock units as of December 31, 2022: Service Vesting Weighted- Average Grant-Date Fair Value Market / Service Vesting Restricted Stock Units Weighted-Average Grant-Date Fair Value (In thousands) (In thousands) Outstanding at December 31, 2019: 4,731 $ 5.71 7,798 $ 8.42 Granted(1) 3,481 5.48 3,394 8.37 Forfeited(1) (1,187) 6.12 (726) 8.03 Vested (2,185) 5.91 (2,607) 9.47 Outstanding at December 31, 2020: 4,840 5.34 7,859 8.11 Granted(1) 2,905 2.57 6,744 3.91 Forfeited(1) (649) 4.05 (1,998) 5.50 Vested (2,400) 5.19 (1,372) 9.95 Outstanding at December 31, 2021: 4,696 3.88 11,233 5.28 Granted(1) 2,820 4.70 3,388 6.98 Forfeited(1) (147) 3.92 (389) 6.21 Vested (2,453) 4.21 (2,191) 5.98 Outstanding at December 31, 2022: 4,916 4.18 12,041 5.61 __________________________________ (1) The restricted stock units with a combination of market and service vesting criteria may vest between 0% and 200% of the originally granted units depending upon market performance conditions. Awards vesting over or under target shares of 100% results in additional shares granted or forfeited, respectively, in the period the market vesting criteria is determined. |
Schedule of Share-based Payment Arrangement, Activity | The following table summarizes certain information related to our share-based payments: Years Ended December 31, 2022 2021 2020 (In thousands) Share-based compensation expense $ 34,546 $ 31,651 $ 32,706 Total tax benefit 5,933 5,786 4,694 Net tax shortfall (windfall) 673 6,307 1,175 Fair value of awards vested 22,205 9,435 26,039 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income (loss) before income taxes | Income (loss) before income taxes is composed of the following: Years Ended December 31, 2022 2021 2020 (In thousands) United States $ 73,529 $ (75,948) $ (338,746) Foreign 263,538 32,568 (78,049) Income (loss) before income taxes $ 337,067 $ (43,380) $ (416,795) |
Schedule of components of the provision for income taxes attributable to the entity's income (loss) before income taxes | The components of the provision for income taxes attributable to our income (loss) before income taxes consist of the following: Years Ended December 31, 2022 2021 2020 (In thousands) Current: United States $ 7,174 $ 282 $ (12,208) Foreign 300,829 103,348 49,586 Total current 308,003 103,630 37,378 Deferred: United States 84 1,202 34,831 Foreign (197,571) (70,376) (77,418) Total deferred (197,487) (69,174) (42,587) Income tax expense (benefit) $ 110,516 $ 34,456 $ (5,209) |
Schedule of reconciliation of income tax expense and the reported effective tax rate | Our reconciliation of income tax expense (benefit) computed by applying our statutory rate and the reported effective tax rate on income or (loss) from continuing operations is as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Tax at statutory rate $ 70,784 $ (9,110) $ (87,527) Foreign income (loss) taxed at different rates 20,663 17,344 (1,771) Non-deductible compensation 3,012 2,775 890 Non-deductible and other items 3,993 1,719 387 Tax shortfall (windfall) on equity-based compensation, net 673 6,307 1,175 Change in valuation allowance 11,391 15,421 86,539 U.S. tax loss carryback rate differential — — (4,902) Total tax expense (benefit) $ 110,516 $ 34,456 $ (5,209) Effective tax rate(1) 33 % 79 % 1 % ______________________________________ (1) The effective tax rate during the years ended December 31, 2022, 2021 and 2020, were impacted by (gains) and losses of $21.0 million, $61.6 million and $(2.9) million, respectively, incurred in jurisdictions in which we are not subject to taxes and therefore do not generate any income tax benefits or where there are valuation allowances offsetting the corresponding deferred tax assets. |
Schedule of tax effects of significant temporary differences to deferred tax assets and liabilities | The tax effects of significant temporary differences giving rise to deferred tax assets and liabilities are as follows: December 31, 2022 2021 (In thousands) Deferred tax assets: Foreign capitalized operating expenses $ 196,018 $ 172,836 Foreign net operating losses 19,297 35,518 United States net operating losses 81,040 109,094 United States deferred interest expense 17,421 6,725 Equity compensation 7,916 12,424 Unrealized derivative losses — 21,710 Asset retirement obligation and other 67,083 55,859 Total deferred tax assets 388,775 414,166 Valuation allowance (312,968) (318,343) Total deferred tax assets, net 75,807 95,823 Deferred tax liabilities: Depletion, depreciation and amortization related to property and equipment (512,019) (806,861) Other deferred tax liabilities (32,233) — Total deferred tax liabilities (544,252) (806,861) Net deferred tax liability $ (468,445) $ (711,038) |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
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 | Basic net income (loss) per share is computed as (i) net income (loss), (ii) less income allocable to participating securities (iii) divided by weighted average basic shares outstanding. The Company’s diluted net income (loss) per share is computed as (i) basic net income (loss), (ii) plus diluted adjustments to income allocable to participating securities (iii) divided by weighted average diluted shares outstanding. Years Ended December 31, 2022 2021 2020 (In thousands, except per share data) Numerator: Net income (loss) allocable to common stockholders $ 226,551 $ (77,836) $ (411,586) Denominator: Weighted average number of shares outstanding: Basic 455,346 416,943 405,212 Restricted stock units(1) 19,511 — — Diluted 474,857 416,943 405,212 Net income (loss) per share: Basic $ 0.50 $ (0.19) $ (1.02) Diluted $ 0.48 $ (0.19) $ (1.02) ______________________________________ (1) Our restricted stock units are not considered to be participating securities and, therefore, are excluded from the basic net income (loss) per share calculation. (2) For the years ended December 31, 2022, 2021 and 2020, we excluded 0.1 million, 19.0 million and 6.1 million outstanding restricted stock units, respectively, from the computations of diluted net income per share because the effect would have been anti‑dilutive. |
Additional Financial Informat_2
Additional Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Additional Financial Information | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following: December 31, 2022 2021 (In thousands) Accrued liabilities: Exploration, development and production $ 80,598 $ 61,881 Revenue payable 26,087 31,986 Current asset retirement obligations 1,732 3,222 General and administrative expenses 32,069 27,980 Interest 44,740 31,117 Income taxes 127,183 69,392 Taxes other than income 1,524 2,854 Derivatives 6,440 19,302 Other 4,833 2,936 $ 325,206 $ 250,670 |
Schedule of other expenses, net incurred | Other expenses, net incurred during the period is comprised of the following: Years Ended December 31, 2022 2021 2020 (In thousands) Loss on disposal of inventory $ 1,521 $ 1,239 $ 8,607 Gain on insurance settlements (7,000) — — (Gain) loss on asset retirement obligations liability settlements (3,278) 6,351 1,966 Restructuring charges (4) 2,584 16,474 Other, net (293) (63) 10,755 Other expenses, net $ (9,054) $ 10,111 $ 37,802 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Information | Financial information for each area is presented below: Ghana(2) Equatorial Guinea Mauritania / Senegal U.S. Gulf of Mexico(3) Corporate & Other Eliminations Total (in thousands) Years ended December 31, 2022 Revenues and other income: Oil and gas revenue $ 1,350,962 $ 346,783 $ — $ 547,610 $ — $ — $ 2,245,355 Gain on sale of assets — — — 471 50,000 — 50,471 Other income, net 428 3,350 — 2,405 386,002 (388,236) 3,949 Total revenues and other income 1,351,390 350,133 — 550,486 436,002 (388,236) 2,299,775 Costs and expenses: Oil and gas production 206,486 90,602 — 105,968 — — 403,056 Facilities insurance modifications, net 6,243 — — — — — 6,243 Exploration expenses 14,987 7,378 82,526 22,763 6,576 — 134,230 General and administrative 15,310 6,703 9,798 15,794 180,594 (127,343) 100,856 Depletion, depreciation and amortization 289,058 53,765 412 153,407 1,614 — 498,256 Impairment of long-lived assets 450,357 — — (388) — — 449,969 Interest and other financing costs, net(1) 64,620 (2,494) (69,644) 11,180 114,598 — 118,260 Derivatives, net — — — — 260,892 — 260,892 Other expenses, net 233,785 8,397 (1,178) 10,339 496 (260,893) (9,054) Total costs and expenses 1,280,846 164,351 21,914 319,063 564,770 (388,236) 1,962,708 Income (loss) before income taxes 70,544 185,782 (21,914) 231,423 (128,768) — 337,067 Income tax expense (benefit) 28,091 72,814 — (1,010) 10,621 — 110,516 Net income (loss) $ 42,453 $ 112,968 $ (21,914) $ 232,433 $ (139,389) $ — $ 226,551 Consolidated capital expenditures $ 98,540 $ 36,036 $ 407,982 $ 111,016 $ (41,986) $ — $ 611,588 As of December 31, 2022 Property and equipment, net $ 1,202,937 $ 396,737 $ 1,396,884 $ 829,242 $ 16,847 $ — $ 3,842,647 Total assets $ 2,886,242 $ 1,463,211 $ 2,026,776 $ 3,695,641 $ 19,554,236 $ (25,046,118) $ 4,579,988 ______________________________________ (1) Interest expense is recorded based on actual third-party and intercompany debt agreements. Capitalized interest is recorded on the business unit where the assets reside. (2) Includes activity related to the interest pre-empted by Tullow prior to the March 17, 2022 closing date of the Tullow pre-emption transaction. Additionally, cash consideration of $118.2 million is included as a reduction in Consolidated capital expenditures for the year ended December 31, 2022. (3) Includes activity related to our acquisition of an additional interest in the Kodiak oil field commencing June 9, 2022, the acquisition date. Additionally, cash consideration paid of $29.0 million is included in Consolidated capital expenditures for the year ended December 31, 2022. Ghana (2) Equatorial Guinea Mauritania / Senegal U.S. Gulf of Mexico Corporate & Other Eliminations Total (in thousands) Year ended December 31, 2021 Revenues and other income: Oil and gas revenue $ 644,232 $ 260,520 $ — $ 427,261 $ — $ — $ 1,332,013 Gain on sale of assets — — — — 1,564 — 1,564 Other income, net 6 — — 1,279 395,073 (396,096) 262 Total revenues and other income 644,238 260,520 — 428,540 396,637 (396,096) 1,333,839 Costs and expenses: Oil and gas production 151,079 93,032 — 101,895 — — 346,006 Facilities insurance modifications, net (1,586) — — — — — (1,586) Exploration expenses 1,527 5,700 10,639 41,230 6,286 — 65,382 General and administrative 12,179 4,343 8,601 17,665 172,869 (124,128) 91,529 Depletion, depreciation and amortization 240,901 56,468 61 168,142 1,649 — 467,221 Interest and other financing costs, net(1) 51,279 (1,661) (44,831) 15,875 109,493 (1,784) 128,371 Derivatives, net — — — — 270,185 — 270,185 Other expenses, net 206,466 41,891 (2,189) 30,118 4,010 (270,185) 10,111 Total costs and expenses 661,845 199,773 (27,719) 374,925 564,492 (396,097) 1,377,219 Income (loss) before income taxes (17,607) 60,747 27,719 53,615 (167,855) 1 (43,380) Income tax expense (benefit) (4,290) 37,487 — (4,958) 6,217 — 34,456 Net income (loss) $ (13,317) $ 23,260 $ 27,719 $ 58,573 $ (174,072) $ 1 $ (77,836) Consolidated capital expenditures $ 575,472 $ 77,364 $ 170,690 $ 96,897 $ 3,791 $ — $ 924,214 As of December 31, 2021 Property and equipment, net $ 1,885,116 $ 460,975 $ 918,683 $ 901,392 $ 17,821 $ — $ 4,183,987 Total assets $ 3,125,835 $ 911,159 $ 1,346,622 $ 3,258,264 $ 17,108,138 $ (20,809,367) $ 4,940,651 ______________________________________ (1) Interest expense is recorded based on actual third-party and intercompany debt agreements. Capitalized interest is recorded on the business unit where the assets reside. (2) Includes activity related to our acquisition of additional interests in Ghana commencing October 13, 2021, the acquisition date. Additionally, the acquisition purchase price of $465.4 million is included in Consolidated capital expenditures. Ghana Equatorial Guinea Mauritania / Senegal U.S. Gulf of Mexico Corporate & Other Eliminations Total (in thousands) Year ended December 31, 2020 Revenues and other income: Oil and gas revenue $ 366,515 $ 152,501 $ — $ 285,017 $ — $ — $ 804,033 Gain on sale of assets — — — 84 92,079 — 92,163 Other income, net 2 — — 280 120,135 (120,415) 2 Total revenues and other income 366,517 152,501 — 285,381 212,214 (120,415) 896,198 Costs and expenses: Oil and gas production 169,357 80,813 — 88,307 — — 338,477 Facilities insurance modifications, net 13,161 — — — — — 13,161 Exploration expenses 182 8,290 8,189 26,792 41,163 — 84,616 General and administrative 13,506 4,865 7,464 12,607 129,801 (96,101) 72,142 Depletion, depreciation and amortization 235,772 64,786 61 181,898 3,345 — 485,862 Impairment of long-lived assets — — — 153,959 — — 153,959 Interest and other financing costs, net(1) 54,530 (1,248) (27,339) 17,373 73,612 (7,134) 109,794 Derivatives, net — — — — 17,180 — 17,180 Other expenses, net (27,925) 2,281 4,829 54,485 21,312 (17,180) 37,802 Total costs and expenses 458,583 159,787 (6,796) 535,421 286,413 (120,415) 1,312,993 Income (loss) before income taxes (92,066) (7,286) 6,796 (250,040) (74,199) — (416,795) Income tax expense (benefit) (30,486) 2,428 — 26,061 (3,212) — (5,209) Net income (loss) $ (61,580) $ (9,714) $ 6,796 $ (276,101) $ (70,987) $ — $ (411,586) Consolidated capital expenditures $ 44,146 $ 38,126 $ 126,803 $ 123,197 $ (58,293) $ — $ 273,979 As of December 31, 2020 Property and equipment, net $ 1,293,372 $ 426,365 $ 580,920 $ 998,204 $ 22,052 $ — $ 3,320,913 Total assets $ 1,397,802 $ 689,222 $ 823,411 $ 3,171,851 $ 12,654,827 $ (14,869,520) $ 3,867,593 ______________________________________ (1) Interest expense is recorded based on actual third-party and intercompany debt agreements. Capitalized interest is recorded on the business unit where the assets reside. Years Ended December 31, 2022 2021 2020 (In thousands) Consolidated capital expenditures: Consolidated Statements of Cash Flows - Investing activities: Oil and gas assets $ 787,297 $ 472,631 $ 379,593 Acquisition of oil and gas properties 22,078 465,367 — Proceeds on sale of assets (168,703) (6,354) (99,118) Adjustments: Changes in capital accruals 396 (18,534) (42,315) Exploration expense, excluding unsuccessful well costs and leasehold impairments(1) 47,289 46,563 61,459 Capitalized interest (84,343) (46,098) (25,013) Other 7,574 10,639 (627) Total consolidated capital expenditures $ 611,588 $ 924,214 $ 273,979 ______________________________________ (1) Unsuccessful well costs are included in oil and gas assets when incurred. |
Organization (Details)
Organization (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable geographic areas | 4 |
Accounting Policies - Cash, Cas
Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 183,405 | $ 131,620 | $ 149,027 | |
Restricted cash - current | 0 | 42,971 | 195 | |
Restricted cash - long-term | 3,416 | 305 | 542 | |
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 186,821 | $ 174,896 | $ 149,764 | $ 229,346 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | May 31, 2022 USD ($) | Mar. 31, 2022 | |
Cash, Cash Equivalents and Restricted Cash | |||||
Restricted cash | $ 0 | $ 42,971 | $ 195 | ||
Receivables | |||||
Allowance for doubtful accounts | 7,000 | 5,200 | |||
Inventories | |||||
Materials and supplies inventory | 125,300 | 149,500 | |||
Hydrocarbons inventory | 8,200 | 15,700 | |||
Write down of materials and supplies | 1,521 | 1,239 | 8,607 | ||
Revenue Recognition | |||||
Oil and gas imbalances | 0 | 0 | |||
Restructuring Charges | |||||
Restructuring charges | $ (4) | 2,584 | $ 16,474 | ||
Minimum | |||||
Depletion, Depreciation and Amortization | |||||
Estimated useful lives | 1 year | ||||
Maximum | |||||
Depletion, Depreciation and Amortization | |||||
Estimated useful lives | 8 years | ||||
Capitalized Interest | Minimum | |||||
Capitalized Interest | |||||
Expected construction period for capitalization of interest costs on major projects | 1 year | ||||
Facility | |||||
Cash, Cash Equivalents and Restricted Cash | |||||
Net leverage ratio | 2.50 | 2.50 | |||
Facility Interest Or Senior Notes Plus The Corporate Revolver | |||||
Cash, Cash Equivalents and Restricted Cash | |||||
Period for contractual future interest payments | 6 months | ||||
Restricted cash | $ 42,900 | $ 59,100 | |||
7.125% Senior Notes | |||||
Cash, Cash Equivalents and Restricted Cash | |||||
Interest rate (as a percent) | 7.125% | ||||
7.750% Senior Notes | |||||
Cash, Cash Equivalents and Restricted Cash | |||||
Interest rate (as a percent) | 7.75% | ||||
7.500% Senior Notes | |||||
Cash, Cash Equivalents and Restricted Cash | |||||
Interest rate (as a percent) | 7.50% |
Accounting Policies - Useful Li
Accounting Policies - Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 1 year |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 8 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 1 year |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 8 years |
Office furniture, fixtures and computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Office furniture, fixtures and computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Accounting Policies - Summary o
Accounting Policies - Summary of Oil and Gas Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Provisional oil sales contracts | $ (275,465) | $ (277,705) | $ (22,800) |
Oil and gas revenue | 2,245,355 | 1,332,013 | 804,033 |
Equatorial Guinea | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 349,443 | 257,628 | 149,033 |
Ghana | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,362,875 | 654,644 | 375,603 |
Gulf of Mexico | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 547,610 | 427,261 | 285,017 |
Oil and Gas Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Provisional oil sales contracts | (14,573) | (7,520) | (5,620) |
Oil and gas revenue | $ 2,245,355 | $ 1,332,013 | $ 804,033 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - 2022 Transactions (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||||||
Oct. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) transaction | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) well | Dec. 31, 2022 | Oct. 30, 2022 | May 31, 2022 | |
Winterfell Green Canyon Blocks | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of transactions | transaction | 2 | |||||||
Marubeni | Kodiak Field | ||||||||
Business Acquisition [Line Items] | ||||||||
Participating interest percentage acquired (as a percent) | 5.90% | |||||||
Participating interest percentage after acquired interest (as a percent) | 35% | 35% | ||||||
Total purchase price | $ 29 | |||||||
Initial purchase price | 38.3 | |||||||
Business combination, purchase price adjustments | 9.3 | |||||||
Assets acquired and liabilities assumed | $ 27.1 | $ 27.1 | ||||||
Participation interest, percentage | 29.10% | |||||||
Green Canyon Blocks 943, 944, 987 And 988 | Winterfell Green Canyon Blocks | ||||||||
Business Acquisition [Line Items] | ||||||||
Participating interest percentage acquired (as a percent) | 3.20% | 5.50% | ||||||
Participating interest percentage after acquired interest (as a percent) | 25% | |||||||
Green Canyon Blocks 899 And 900 | Winterfell Green Canyon Blocks | ||||||||
Business Acquisition [Line Items] | ||||||||
Participating interest percentage acquired (as a percent) | 1.40% | 1.50% | ||||||
Participating interest percentage after acquired interest (as a percent) | 37.80% | |||||||
Green Canyon Blocks 943, 944, 987, 988, 899 And 900 | Winterfell Green Canyon Blocks | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration paid | $ 6.6 | $ 9.6 | ||||||
Block G Ceiba Field Or Okume Complex | Block G Petroleum | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of development wells | well | 3 | |||||||
Block S Offshore Equatorial Guinea | Farm-out Agreement | Panoro Energy ASA | ||||||||
Business Acquisition [Line Items] | ||||||||
Participation interest, percentage | 6% | 34% | ||||||
Cash consideration expected | $ 1.8 | |||||||
Block S Offshore Equatorial Guinea | Block G Petroleum | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of exploration wells | well | 1 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - 2021 Transactions (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2022 | Oct. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | ||||||||
Proceeds on sale of assets | $ 168,703 | $ 6,354 | $ 99,118 | |||||
Public Issuance | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from issuance | $ 136,600 | |||||||
Number of shares issued (in shares) | 43.1 | |||||||
Bridge Notes | Senior Notes | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt, face amount | $ 400,000 | |||||||
Facility | Revolving Credit Facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Borrowings under long-term debt | 75,000 | |||||||
7.750% Senior Notes | ||||||||
Business Acquisition [Line Items] | ||||||||
Interest rate (as a percent) | 7.75% | |||||||
7.750% Senior Notes | Senior Notes | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt, face amount | $ 400,000 | |||||||
Interest rate (as a percent) | 7.75% | |||||||
Anadarko WCTP | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration paid | $ 455,886 | |||||||
Transaction related costs | $ 9,481 | |||||||
Revenue of acquiree since acquisition date | $ 104,400 | |||||||
Operating expenses of acquiree since acquisition date | $ 10,300 | |||||||
Jubilee Unit Area | ||||||||
Business Acquisition [Line Items] | ||||||||
Participating interest percentage (as a percent) | 24.10% | |||||||
Jubilee Unit Area | Anadarko WCTP | ||||||||
Business Acquisition [Line Items] | ||||||||
Participating interest percentage acquired (as a percent) | 18% | |||||||
Participating interest percentage after acquired interest (as a percent) | 42.10% | 42.10% | 42.10% | |||||
TEN Fields | ||||||||
Business Acquisition [Line Items] | ||||||||
Participating interest percentage (as a percent) | 17% | |||||||
TEN Fields | Anadarko WCTP | ||||||||
Business Acquisition [Line Items] | ||||||||
Participating interest percentage acquired (as a percent) | 11.10% | |||||||
Participating interest percentage after acquired interest (as a percent) | 28.10% | 28.10% | 28.10% | |||||
Jubilee Unit Area And Ten Fields | Anadarko WCTP | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration paid | $ 455,900 | |||||||
Initial purchase price | 550,600 | |||||||
Business combination, purchase price adjustments | 94,700 | |||||||
Transaction related costs | $ 9,500 | |||||||
Jubilee Unit Area And Ten Fields | Tullow | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds on sale of assets | $ 118,200 | |||||||
Reduction from divestiture | $ 175,500 | |||||||
Deepwater Tano Block Joint Operating Agreement | Jubilee Unit Area | ||||||||
Business Acquisition [Line Items] | ||||||||
Participating interest percentage after pre-emption (as a percent) | 38.60% | 38.60% | ||||||
Deepwater Tano Block Joint Operating Agreement | TEN Fields | ||||||||
Business Acquisition [Line Items] | ||||||||
Participating interest percentage after pre-emption (as a percent) | 20.40% | 20.40% |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - Anadarko WCTP - USD ($) $ in Thousands | 1 Months Ended | |
Oct. 31, 2021 | Dec. 31, 2021 | |
Fair value of assets acquired: | ||
Proved oil and gas properties | $ 718,159 | |
Accounts receivable and other | 95,847 | |
Total assets acquired | 814,006 | |
Fair value of liabilities assumed: | ||
Asset retirement obligations | 28,342 | $ 28,300 |
Accounts payable and accrued liabilities | 113,704 | |
Deferred tax liabilities | 206,593 | |
Total liabilities assumed | 348,639 | |
Cash consideration paid | 455,886 | |
Transaction related costs | 9,481 | |
Total purchase price | $ 465,367 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - 2020 Transactions (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) well | Sep. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) well | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2020 USD ($) well | |
Acquisitions and Divestitures | |||||||
Proceeds on sale of assets | $ 168,703 | $ 6,354 | $ 99,118 | ||||
Gain on sale of assets | $ 50,471 | $ 1,564 | 92,163 | ||||
Farm Down Agreement | Blocks Offshore Sao Tome and Principe Suriname and Namibia | |||||||
Acquisitions and Divestitures | |||||||
Proceeds on sale of assets | $ 50,000 | ||||||
Gain on sale of assets | $ 50,000 | 92,100 | |||||
Number of wells with appraisal plan | well | 1 | 1 | |||||
Shell | Farm Down Agreement | Blocks Offshore Sao Tome And Principe, Suriname, Namibia, And South Africa | |||||||
Acquisitions and Divestitures | |||||||
Amount of cash consideration received for frontier exploration portfolio | $ 96,000 | ||||||
Shell | Farm Down Agreement | Blocks Offshore Sao Tome and Principe Suriname and Namibia | |||||||
Acquisitions and Divestitures | |||||||
Future contingent consideration | $ 50,000 | ||||||
Proceeds on sale of assets | $ 50,000 | $ 95,000 | |||||
Gain on sale of assets | $ 50,000 | $ 92,100 | |||||
Number of wells | well | 4 | 4 | 4 | ||||
Number of wells with appraisal plan | well | 1 | 1 | |||||
Shell | Farm Down Agreement | Blocks Offshore Sao Tome and Principe Suriname and Namibia | Maximum | |||||||
Acquisitions and Divestitures | |||||||
Future contingent consideration | $ 100,000 | ||||||
Shell | Farm Down Agreement | Blocks Offshore South Africa | |||||||
Acquisitions and Divestitures | |||||||
Proceeds on sale of assets | $ 1,000 |
Joint Interest Billings and L_2
Joint Interest Billings and Long-term Receivables (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 28, 2019 USD ($) agreement | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Joint interest billings | ||||||
Joint interest billings, net | $ 36,908 | $ 28,851 | ||||
Long-term receivables | 191,150 | 235,696 | ||||
BP Operator | ||||||
Joint interest billings | ||||||
Long-term investments and receivables, net | $ 200,200 | |||||
Settlement of payment obligation of capital expenditures | $ 67,800 | 132,400 | ||||
Greater Tortue FPSO | BP Operator | ||||||
Joint interest billings | ||||||
Contract liability, noncurrent | 200,200 | $ 200,200 | ||||
Carry Advance Agreements | National Oil Companies Of Mauritania And Senegal | ||||||
Joint interest billings | ||||||
Long-term receivables | 145,200 | 218,400 | ||||
Number of agreements | agreement | 2 | |||||
Share of development costs to be financed, up to | $ 240,000 | |||||
Interest income, long-term notes receivable | 7,100 | 10,100 | $ 3,800 | |||
TEN Discoveries | GNPC | ||||||
Joint interest billings | ||||||
Joint interest billings, net | 7,900 | 6,400 | ||||
Long-term receivables | $ 20,900 | $ 17,300 | ||||
GNPC | TEN Discoveries | ||||||
Joint interest billings | ||||||
GNPC's paying interest | 5% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Oil and gas properties: | |||||
Proved properties | $ 6,953,435,000 | $ 6,725,453,000 | |||
Unproved properties | 341,334,000 | 451,454,000 | |||
Total oil and gas properties | 7,294,769,000 | 7,176,907,000 | |||
Accumulated depletion | (3,457,332,000) | (2,999,584,000) | |||
Oil and gas properties, net | 3,837,437,000 | 4,177,323,000 | |||
Other property | 60,730,000 | 58,598,000 | |||
Accumulated depreciation | (55,520,000) | (51,934,000) | |||
Other property, net | 5,210,000 | 6,664,000 | |||
Property and equipment, net | $ 3,320,913,000 | 3,842,647,000 | 4,183,987,000 | $ 3,320,913,000 | |
Depletion expense | 471,400,000 | 442,300,000 | 460,900,000 | ||
Depreciation expense | 3,600,000 | 3,900,000 | 5,500,000 | ||
Impairment of long-lived assets | $ 3,200,000 | $ 150,800,000 | 449,969,000 | 0 | 153,959,000 |
Capitalized exploratory well costs charged to expense | 62,818,000 | $ 0 | $ 0 | ||
Kodiak Field, Block G Equatorial Guinea And Winterfell | |||||
Oil and gas properties: | |||||
Oil and gas property, net addition from acquisition and licenses extension | 53,100,000 | ||||
BirAllah and Orca Discoveries | |||||
Oil and gas properties: | |||||
Capitalized exploratory well costs charged to expense | $ 64,200,000 |
Suspended Well Costs - Schedule
Suspended Well Costs - Schedule of Suspended Well Costs (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) project | Dec. 31, 2021 USD ($) project | Dec. 31, 2020 USD ($) project | |
Reconciliation of capitalized exploratory well costs on completed wells | |||
Beginning balance | $ 218,180 | $ 186,289 | $ 445,790 |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 25,209 | 31,891 | 4,001 |
Reclassification due to determination of proved reserves | (34,614) | 0 | (263,502) |
Capitalized exploratory well costs charged to expense | (62,818) | 0 | 0 |
Ending balance | 145,957 | 218,180 | 186,289 |
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 | 0 | 20,903 | 0 |
Exploratory well costs capitalized for a period of one to three years | 32,770 | 30,389 | 66,573 |
Exploratory well costs capitalized for a period of four to six years | 113,187 | 166,888 | 119,716 |
Ending balance | $ 145,957 | $ 218,180 | $ 186,289 |
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year | project | 2 | 3 | 3 |
Suspended Well Costs - Narrativ
Suspended Well Costs - Narrative (Details) - Yakaar and Teranga Discoveries - km | 1 Months Ended | |
Jul. 31, 2021 | Sep. 30, 2019 | |
Capitalized Contract Cost [Line Items] | ||
Distance from Yakaar-2 well to Yakaar-1 exploration well | 9 | |
Additional term from exploration license extension | 3 years |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 3,882 | $ 3,971 |
Variable lease cost | 1,825 | 1,780 |
Short-term lease cost | 13,970 | 10,790 |
Total lease cost | $ 19,677 | $ 16,541 |
Balance sheet classifications | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities | Accrued liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Other assets (right-of-use assets) | $ 16,044 | $ 17,578 |
Accrued liabilities (current maturities of leases) | 2,181 | 1,905 |
Other long-term liabilities (non-current maturities of leases) | $ 18,007 | $ 20,351 |
Weighted average remaining lease term | 6 years 6 months | 7 years 6 months |
Weighted average discount rate | 9.80% | 9.80% |
Operating cash flows for operating leases | $ 7,170 | $ 6,460 |
Investing cash flows for operating leases | 12,449 | 9,350 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | 4,032 | |
2024 | 4,104 | |
2025 | 4,175 | |
2026 | 4,246 | |
2027 | 4,192 | |
Thereafter | 6,652 | |
Total undiscounted lease payments | 27,401 | |
Less: Imputed interest | (7,213) | |
Total lease liabilities | 20,188 | |
Short-Term Drilling Contracts | ||
Lease, Cost [Abstract] | ||
Short-term lease cost | $ 12,500 | $ 9,400 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, initial term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, initial term | 10 years |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Mar. 31, 2021 | Apr. 30, 2019 |
Debt Instrument [Line Items] | |||||
Outstanding debt principal | $ 2,270,000 | $ 2,675,000 | |||
Unamortized deferred financing costs and discounts | (44,089) | (54,505) | |||
Total debt, net | 2,225,911 | 2,620,495 | |||
Less: Current maturities of long-term debt | (30,000) | (30,000) | |||
Long-term debt, net | 2,195,911 | 2,590,495 | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Unamortized deferred financing costs and discounts | (16,700) | (20,200) | |||
Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt principal | 625,000 | 1,000,000 | |||
Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Unamortized deferred financing costs and discounts | $ (25,200) | (31,000) | |||
7.125% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 7.125% | ||||
7.125% Senior Notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 7.125% | ||||
Outstanding debt principal | $ 650,000 | 650,000 | |||
7.750% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 7.75% | ||||
7.750% Senior Notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 7.75% | ||||
Outstanding debt principal | $ 400,000 | 400,000 | |||
7.500% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 7.50% | ||||
7.500% Senior Notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 7.50% | ||||
Outstanding debt principal | $ 450,000 | 450,000 | |||
GoM Term Loan | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt principal | 145,000 | 175,000 | |||
Unamortized deferred financing costs and discounts | (2,200) | $ (3,300) | |||
Less: Current maturities of long-term debt | $ (30,000) |
Debt - Facility (Details)
Debt - Facility (Details) $ in Thousands | 12 Months Ended | |||||||||||||
Apr. 19, 2023 | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 31, 2024 | Oct. 31, 2022 USD ($) | Sep. 30, 2022 | May 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Mar. 30, 2022 USD ($) | Oct. 31, 2021 | Mar. 31, 2021 | Apr. 30, 2019 | |
Debt Instrument [Line Items] | ||||||||||||||
Loss on extinguishment of debt | $ 192 | $ 19,625 | $ 2,902 | |||||||||||
Restricted cash | $ 0 | 42,971 | $ 195 | |||||||||||
Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Net leverage ratio | 2.50 | 2.50 | ||||||||||||
Field life cover ratio | 1.30 | |||||||||||||
Interest cover ratio | 2.25 | |||||||||||||
Debt cover ratio | 3.50 | |||||||||||||
Facility | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loan life cover ratio | 1.10 | |||||||||||||
Facility | Maximum | Forecast | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loan life cover ratio | 1.30 | |||||||||||||
Facility Interest Or Senior Notes Plus The Corporate Revolver | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interval period for payment of interest | 6 months | |||||||||||||
Restricted cash | 42,900 | $ 59,100 | ||||||||||||
7.125% Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate (as a percent) | 7.125% | |||||||||||||
7.125% Senior Notes | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate (as a percent) | 7.125% | |||||||||||||
7.750% Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate (as a percent) | 7.75% | |||||||||||||
7.750% Senior Notes | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate (as a percent) | 7.75% | |||||||||||||
7.500% Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate (as a percent) | 7.50% | |||||||||||||
7.500% Senior Notes | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate (as a percent) | 7.50% | |||||||||||||
Revolving Credit Facility | Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loss on extinguishment of debt | $ 15,200 | |||||||||||||
Repayments of long-term lines of credit | $ 375,000 | |||||||||||||
Maximum borrowing capacity | $ 1,240,000 | $ 1,250,000 | ||||||||||||
Amount outstanding | 625,000 | |||||||||||||
Undrawn availability | $ 618,000 | |||||||||||||
Interval period for payment of interest | 6 months | |||||||||||||
Commitment fee percentage of the then-applicable margin when commitment is available for utilization | 30% | |||||||||||||
Commitment fee percentage of the then-applicable margin when commitment is not available for utilization | 20% | |||||||||||||
Availability period of revolving-credit | 1 month | |||||||||||||
Amount outstanding under letters of credit | $ 0 | |||||||||||||
Revolving Credit Facility | Facility | Minimum | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 3.75% | |||||||||||||
Revolving Credit Facility | Facility | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Forecast | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 3.75% | |||||||||||||
Revolving Credit Facility | Facility | Maximum | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 5% | |||||||||||||
Revolving Credit Facility | Facility | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Forecast | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 5% | |||||||||||||
Revolving Credit Facility | Corporate Revolver | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Amount outstanding | $ 0 | |||||||||||||
Undrawn availability | $ 250,000 | $ 250,000 | $ 400,000 | |||||||||||
Interest cover ratio | 2.25 | |||||||||||||
Debt cover ratio | 3.50 | |||||||||||||
Revolving Credit Facility | Corporate Revolver | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 7% | 7% |
Debt - Corporate Revolver (Deta
Debt - Corporate Revolver (Details) - Revolving Credit Facility - Corporate Revolver $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 | Mar. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||
Undrawn availability | $ 250 | $ 250 | $ 400 | |
Debt instrument, cash sweep (as a percent) | 50% | |||
Debt issuance costs | 6.1 | |||
Amount outstanding | $ 0 | |||
Interval period for payment of interest | 6 months | |||
Commitment fee (as a percent) | 30% | |||
Interest cover ratio | 2.25 | |||
Debt cover ratio | 3.50 | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Debt Instrument [Line Items] | ||||
Applicable margin | 7% | 7% |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Oct. 31, 2021 | Mar. 31, 2021 | Apr. 30, 2019 | Dec. 31, 2022 | |
7.125% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 7.125% | |||
7.125% Senior Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 7.125% | |||
Debt, face amount | $ 650 | |||
Proceeds from debt, net of issuance costs | $ 640 | |||
Redemption price percentage following change of control (as a percent) | 101% | |||
Redemption price percentage following sell of certain assets (as a percent) | 100% | |||
7.875% Senior Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 7.875% | |||
7.750% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 7.75% | |||
7.750% Senior Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 7.75% | |||
Debt, face amount | $ 400 | |||
Proceeds from debt, net of issuance costs | $ 395 | |||
Redemption price percentage following change of control (as a percent) | 101% | |||
Redemption price percentage following sell of certain assets (as a percent) | 100% | |||
7.750% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument [Line Items] | ||||
Maximum percentage of principal amount available to be redeemed with proceeds from equity offerings (as a percent) | 40% | |||
Redemption price (as a percent) | 107.75% | |||
7.750% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument [Line Items] | ||||
Redemption price, as a percent of the of principal amount (as a percent) | 100% | |||
7.500% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 7.50% | |||
7.500% Senior Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 7.50% | |||
Debt, face amount | $ 450 | |||
Proceeds from debt, net of issuance costs | $ 444.4 | |||
Redemption price percentage following change of control (as a percent) | 101% | |||
Redemption price percentage following sell of certain assets (as a percent) | 100% | |||
7.500% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument [Line Items] | ||||
Maximum percentage of principal amount available to be redeemed with proceeds from equity offerings (as a percent) | 40% | |||
Redemption price (as a percent) | 107.50% | |||
7.500% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument [Line Items] | ||||
Redemption price, as a percent of the of principal amount (as a percent) | 100% | |||
Bridge Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt, face amount | $ 400 |
Debt - Redemption Prices (Detai
Debt - Redemption Prices (Details) - Senior Notes | 1 Months Ended | ||
Oct. 31, 2021 | Mar. 31, 2021 | Apr. 30, 2019 | |
7.125% Senior Notes | Debt Instrument, Redemption, Period One | |||
Debt Instrument [Line Items] | |||
Redemption price, as a percent of the of principal amount (as a percent) | 103.563% | ||
7.125% Senior Notes | Debt Instrument, Redemption, Period Two | |||
Debt Instrument [Line Items] | |||
Redemption price, as a percent of the of principal amount (as a percent) | 101.781% | ||
7.125% Senior Notes | Debt Instrument, Redemption, Period Three | |||
Debt Instrument [Line Items] | |||
Redemption price, as a percent of the of principal amount (as a percent) | 100% | ||
7.500% Senior Notes | Debt Instrument, Redemption, Period One | |||
Debt Instrument [Line Items] | |||
Redemption price, as a percent of the of principal amount (as a percent) | 103.75% | ||
7.500% Senior Notes | Debt Instrument, Redemption, Period Two | |||
Debt Instrument [Line Items] | |||
Redemption price, as a percent of the of principal amount (as a percent) | 101.875% | ||
7.500% Senior Notes | Debt Instrument, Redemption, Period Three | |||
Debt Instrument [Line Items] | |||
Redemption price, as a percent of the of principal amount (as a percent) | 100% | ||
7.750% Senior Notes | Debt Instrument, Redemption, Period One | |||
Debt Instrument [Line Items] | |||
Redemption price, as a percent of the of principal amount (as a percent) | 103.875% | ||
7.750% Senior Notes | Debt Instrument, Redemption, Period Two | |||
Debt Instrument [Line Items] | |||
Redemption price, as a percent of the of principal amount (as a percent) | 101.938% | ||
7.750% Senior Notes | Debt Instrument, Redemption, Period Three | |||
Debt Instrument [Line Items] | |||
Redemption price, as a percent of the of principal amount (as a percent) | 100% |
Debt - GoM Term Loan (Details)
Debt - GoM Term Loan (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Sep. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Current maturities of long-term debt | $ 30,000 | $ 30,000 | ||
Outstanding debt principal | $ 2,270,000 | 2,675,000 | ||
GoM Term Loan | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Debt term (in years) | 5 years | |||
Debt, face amount | $ 200,000 | |||
Proceeds from debt, net of issuance costs | $ 197,700 | |||
Additional incremental commitments | $ 100,000 | |||
Debt instrument, interest rate, effective percentage (as a percent) | 6.90% | |||
Current maturities of long-term debt | $ 30,000 | |||
Outstanding debt principal | $ 145,000 | $ 175,000 |
Debt - Maturities (Details)
Debt - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Scheduled maturities of debt during the five year period and thereafter | ||
Total | $ 2,270,000 | $ 2,675,000 |
2023 | 30,000 | |
2024 | 30,000 | |
2025 | 262,548 | |
2026 | 918,880 | |
2027 | 578,572 | |
Thereafter | $ 450,000 |
Debt - Debt Interest (Details)
Debt - Debt Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Interest expense | $ 180,046 | $ 146,706 | $ 119,857 |
Amortization—deferred financing costs | 10,401 | 10,580 | 9,347 |
Loss on extinguishment of debt | 192 | 19,625 | 2,902 |
Capitalized interest | (84,342) | (46,098) | (25,013) |
Deferred interest | (3,318) | (3,401) | 2,402 |
Interest income | (12,139) | (10,257) | (4,773) |
Other, net | 27,420 | 11,216 | 5,072 |
Interest and other financing costs, net | $ 118,260 | $ 128,371 | $ 109,794 |
Debt - Interest and other finan
Debt - Interest and other financing costs, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Capitalized Contract Cost [Line Items] | |||
Capitalized interest | $ 84,342 | $ 46,098 | $ 25,013 |
Greater Tortue Ahmeyim | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized interest | $ 84,300 | $ 46,100 | $ 25,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Oil Derivative Contracts (Details) - Dated Brent - January 2023 - December 2023 | 12 Months Ended |
Dec. 31, 2022 $ / bbl MBbls | |
Three-way collars | |
Derivative Financial Instruments | |
Volume (mbbls) | MBbls | 6,000 |
Weighted Average Price per Bbl | |
Net deferred premium payable/(receivable) (usd per bbl) | 1.34 |
Sold Put (usd per bbl) | 49.17 |
Floor (usd per bbl) | 71.67 |
Ceiling (usd per bbl) | 107.58 |
Two-way collars | |
Derivative Financial Instruments | |
Volume (mbbls) | MBbls | 4,000 |
Weighted Average Price per Bbl | |
Net deferred premium payable/(receivable) (usd per bbl) | 1.90 |
Sold Put (usd per bbl) | 0 |
Floor (usd per bbl) | 72.50 |
Ceiling (usd per bbl) | 117.50 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - Dated Brent - Three-way collars - Term January 2024 To December 2024 - Subsequent Event | 1 Months Ended |
Jan. 31, 2023 $ / bbl MBbls | |
Derivative Financial Instruments | |
Volume (mbbls) | MBbls | 1,000 |
Sold Put (usd per bbl) | 45 |
Floor (usd per bbl) | 70 |
Ceiling (usd per bbl) | 100 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Derivative Instruments and Gain/(Loss) from Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative instruments, Balance Sheet Location | ||
Derivatives assets—current | $ 7,344 | $ 5,689 |
Derivatives assets—long-term | 1,725 | 1,026 |
Derivatives liabilities—current | (6,773) | (65,879) |
Derivatives liabilities—long-term | (778) | (6,298) |
Not designated as hedging instruments | ||
Derivative instruments, Balance Sheet Location | ||
Total derivatives not designated as hedging instruments | 2,688 | (66,315) |
Commodity derivatives | Not designated as hedging instruments | ||
Derivative instruments, Balance Sheet Location | ||
Derivatives assets—current | 7,344 | 5,689 |
Derivatives assets—long-term | 1,725 | 1,026 |
Derivatives liabilities—current | (6,773) | (65,879) |
Derivatives liabilities—long-term | (778) | (6,298) |
Provisional oil sales | Not designated as hedging instruments | ||
Derivative instruments, Balance Sheet Location | ||
Derivatives assets—current | $ 1,170 | $ (853) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Location of Gain (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative instruments, Location of Gain/(Loss) | |||
Derivative, not designated as hedge, gain (loss) | $ (275,465) | $ (277,705) | $ (22,800) |
Commodity derivatives | Oil and gas revenue | |||
Derivative instruments, Location of Gain/(Loss) | |||
Derivative, not designated as hedge, gain (loss) | (14,573) | (7,520) | (5,620) |
Commodity derivatives | Derivatives, net | |||
Derivative instruments, Location of Gain/(Loss) | |||
Derivative, not designated as hedge, gain (loss) | $ (260,892) | $ (270,185) | $ (17,180) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Company's Assets and Liabilities (Details) - Recurring basis - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Liabilities: | ||
Total derivatives not designated as hedging instruments | $ 2,688 | $ (66,315) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Liabilities: | ||
Total derivatives not designated as hedging instruments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Total derivatives not designated as hedging instruments | 2,688 | (66,315) |
Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Total derivatives not designated as hedging instruments | 0 | 0 |
Commodity derivatives | ||
Assets: | ||
Derivative asset, fair value | 9,069 | 6,715 |
Liabilities: | ||
Derivative liability, fair value | (7,551) | (72,177) |
Commodity derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Liabilities: | ||
Derivative liability, fair value | 0 | 0 |
Commodity derivatives | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Derivative asset, fair value | 9,069 | 6,715 |
Liabilities: | ||
Derivative liability, fair value | (7,551) | (72,177) |
Commodity derivatives | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Liabilities: | ||
Derivative liability, fair value | 0 | 0 |
Provisional oil sales | ||
Assets: | ||
Derivative asset, fair value | 1,170 | (853) |
Provisional oil sales | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Provisional oil sales | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Derivative asset, fair value | 1,170 | (853) |
Provisional oil sales | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Derivative asset, fair value | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Mar. 31, 2021 | Apr. 30, 2019 |
Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 2,257,156 | $ 2,659,595 | |||
Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 2,025,751 | 2,618,703 | |||
7.125% Senior Notes | |||||
Fair Value Measurements | |||||
Interest rate (as a percent) | 7.125% | ||||
7.125% Senior Notes | Senior Notes | |||||
Fair Value Measurements | |||||
Interest rate (as a percent) | 7.125% | ||||
7.125% Senior Notes | Senior Notes | Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 645,699 | 644,572 | |||
7.125% Senior Notes | Senior Notes | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 558,201 | 632,587 | |||
7.750% Senior Notes | |||||
Fair Value Measurements | |||||
Interest rate (as a percent) | 7.75% | ||||
7.750% Senior Notes | Senior Notes | |||||
Fair Value Measurements | |||||
Interest rate (as a percent) | 7.75% | ||||
7.750% Senior Notes | Senior Notes | Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 395,893 | 395,131 | |||
7.750% Senior Notes | Senior Notes | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 335,592 | 386,428 | |||
7.500% Senior Notes | |||||
Fair Value Measurements | |||||
Interest rate (as a percent) | 7.50% | ||||
7.500% Senior Notes | Senior Notes | |||||
Fair Value Measurements | |||||
Interest rate (as a percent) | 7.50% | ||||
7.500% Senior Notes | Senior Notes | Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 445,564 | 444,892 | |||
7.500% Senior Notes | Senior Notes | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | 361,958 | 424,688 | |||
GoM Term Loan | Secured Debt | Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | 145,000 | 175,000 | |||
GoM Term Loan | Secured Debt | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | 145,000 | 175,000 | |||
Facility | Revolving Credit Facility | Carrying Value | |||||
Fair Value Measurements | |||||
Long-term debt | 625,000 | 1,000,000 | |||
Facility | Revolving Credit Facility | Fair Value | |||||
Fair Value Measurements | |||||
Long-term debt | $ 625,000 | $ 1,000,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020 USD ($) | Mar. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 31, 2021 | Mar. 31, 2021 | Apr. 30, 2019 | |
Fair Value Measurements | ||||||||
Impairment of long-lived assets | $ 3,200,000 | $ 150,800,000 | $ 449,969,000 | $ 0 | $ 153,959,000 | |||
Nonrecurring | ||||||||
Fair Value Measurements | ||||||||
Proved oil and gas reserves, fair value | $ 243,700,000 | $ 235,700,000 | ||||||
Nonrecurring | Measurement input, discount rate | Valuation Technique, Discounted Cash Flow | ||||||||
Fair Value Measurements | ||||||||
Long-lived assets, measurement input | 0.10 | 0.10 | ||||||
7.125% Senior Notes | ||||||||
Fair Value Measurements | ||||||||
Interest rate (as a percent) | 7.125% | |||||||
7.125% Senior Notes | Senior Notes | ||||||||
Fair Value Measurements | ||||||||
Interest rate (as a percent) | 7.125% | |||||||
7.750% Senior Notes | ||||||||
Fair Value Measurements | ||||||||
Interest rate (as a percent) | 7.75% | |||||||
7.750% Senior Notes | Senior Notes | ||||||||
Fair Value Measurements | ||||||||
Interest rate (as a percent) | 7.75% | |||||||
7.500% Senior Notes | ||||||||
Fair Value Measurements | ||||||||
Interest rate (as a percent) | 7.50% | |||||||
7.500% Senior Notes | Senior Notes | ||||||||
Fair Value Measurements | ||||||||
Interest rate (as a percent) | 7.50% |
Asset Retirement Obligations -
Asset Retirement Obligations - Summary of Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Asset retirement obligations: | ||
Beginning asset retirement obligations | $ 325,459 | $ 251,421 |
Liabilities incurred during period | 13,696 | 38,967 |
Liabilities settled during period | (9,277) | (8,705) |
Revisions in estimated retirement obligations | (50,600) | 22,744 |
Accretion expense | 23,256 | 21,032 |
Ending asset retirement obligations | $ 302,534 | $ 325,459 |
Asset Retirement Obligations _2
Asset Retirement Obligations - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | |
Business Acquisition [Line Items] | |||
Asset Retirement Obligation, Liabilities Settled | $ 9,277 | $ 8,705 | |
Revisions in estimated retirement obligations | (50,600) | 22,744 | |
Anadarko WCTP | |||
Business Acquisition [Line Items] | |||
Asset retirement obligations | $ 28,300 | $ 28,342 | |
Tullow | |||
Business Acquisition [Line Items] | |||
Asset Retirement Obligation, Liabilities Settled | 10,000 | ||
Equatorial Guinea | |||
Business Acquisition [Line Items] | |||
Revisions in estimated retirement obligations | $ 66,200 |
Equity-based Compensation - Nar
Equity-based Compensation - Narrative (Details) - LTIP - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2023 | Apr. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity-based Compensation | |||||
Additional shares authorized (in shares) | 11 | ||||
Number of shares authorized (in shares) | 61.5 | ||||
Number of shares remaining available for grant (in shares) | 5.9 | ||||
Minimum | |||||
Equity-based Compensation | |||||
Vesting period | 3 years | ||||
Restricted stock units | |||||
Equity-based Compensation | |||||
Compensation expense not yet recognized | $ 20,100,000 | ||||
Weighted average period over which compensation expense is to be recognized | 1 year 8 months 12 days | ||||
Restricted stock units | Subsequent Event | |||||
Equity-based Compensation | |||||
Compensation expense not yet recognized | $ 49,000,000 | ||||
Weighted average period over which compensation expense is to be recognized | 3 years | ||||
Market/Service Vesting Restricted Stock Units | |||||
Equity-based Compensation | |||||
Granted (in dollars per share) | $ 6.98 | $ 3.91 | $ 8.37 | ||
Market/Service Vesting Restricted Stock Units | Subsequent Event | |||||
Equity-based Compensation | |||||
Granted (in shares) | 2.7 | ||||
Market/Service Vesting Restricted Stock Units | Minimum | |||||
Equity-based Compensation | |||||
Vesting percentage of the awards granted | 0% | ||||
Granted (in dollars per share) | $ 1.06 | ||||
Expected volatility | 50% | ||||
Risk-free interest rate | 0.20% | ||||
Expected quarterly dividends (in dollars per share) | $ 0 | ||||
Market/Service Vesting Restricted Stock Units | Maximum | |||||
Equity-based Compensation | |||||
Vesting percentage of the awards granted | 200% | ||||
Granted (in dollars per share) | $ 12.33 | ||||
Expected volatility | 104.80% | ||||
Risk-free interest rate | 2.50% | ||||
Expected quarterly dividends (in dollars per share) | $ 0.050 | ||||
Service Vesting Restricted Stock Units | |||||
Equity-based Compensation | |||||
Granted (in dollars per share) | $ 4.70 | $ 2.57 | $ 5.48 | ||
Service Vesting Restricted Stock Units | Subsequent Event | |||||
Equity-based Compensation | |||||
Granted (in shares) | 2.1 |
Equity-based Compensation - Sch
Equity-based Compensation - Schedule of Awards (Details) - LTIP - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Service Vesting Restricted Stock Units | |||
Outstanding unvested awards activity | |||
Outstanding at the beginning of the period (in shares) | 4,696 | 4,840 | 4,731 |
Granted (in shares) | 2,820 | 2,905 | 3,481 |
Forfeited (in shares) | (147) | (649) | (1,187) |
Vested (in shares) | (2,453) | (2,400) | (2,185) |
Outstanding at the end of the period (in shares) | 4,916 | 4,696 | 4,840 |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at beginning of the period (in dollars per share) | $ 3.88 | $ 5.34 | $ 5.71 |
Granted (in dollars per share) | 4.70 | 2.57 | 5.48 |
Forfeited (in dollars per share) | 3.92 | 4.05 | 6.12 |
Vested (in dollars per share) | 4.21 | 5.19 | 5.91 |
Outstanding at the end of the period (in dollars per share) | $ 4.18 | $ 3.88 | $ 5.34 |
Market/Service Vesting Restricted Stock Units | |||
Outstanding unvested awards activity | |||
Outstanding at the beginning of the period (in shares) | 11,233 | 7,859 | 7,798 |
Granted (in shares) | 3,388 | 6,744 | 3,394 |
Forfeited (in shares) | (389) | (1,998) | (726) |
Vested (in shares) | (2,191) | (1,372) | (2,607) |
Outstanding at the end of the period (in shares) | 12,041 | 11,233 | 7,859 |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at beginning of the period (in dollars per share) | $ 5.28 | $ 8.11 | $ 8.42 |
Granted (in dollars per share) | 6.98 | 3.91 | 8.37 |
Forfeited (in dollars per share) | 6.21 | 5.50 | 8.03 |
Vested (in dollars per share) | 5.98 | 9.95 | 9.47 |
Outstanding at the end of the period (in dollars per share) | $ 5.61 | $ 5.28 | $ 8.11 |
Percent threshold target for grants and forfeitures | 100% | ||
Market/Service Vesting Restricted Stock Units | Minimum | |||
Weighted-Average Grant-Date Fair Value | |||
Granted (in dollars per share) | $ 1.06 | ||
Vesting percentage of the awards granted | 0% | ||
Market/Service Vesting Restricted Stock Units | Maximum | |||
Weighted-Average Grant-Date Fair Value | |||
Granted (in dollars per share) | $ 12.33 | ||
Vesting percentage of the awards granted | 200% |
Equity-based Compensation - S_2
Equity-based Compensation - Schedule of Share-based Payment Arrangement, Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity-based Compensation | |||
Net tax shortfall (windfall) | $ 673 | $ 6,307 | $ 1,175 |
LTIP | |||
Equity-based Compensation | |||
Share-based compensation expense | 34,546 | 31,651 | 32,706 |
Total tax benefit | 5,933 | 5,786 | 4,694 |
Net tax shortfall (windfall) | 673 | 6,307 | 1,175 |
Fair value of awards vested | $ 22,205 | $ 9,435 | $ 26,039 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||||
Tax benefit from cares act | $ 4,900 | |||
Income tax refund claim from Cares act | $ 12,200 | |||
Decrease in deferred tax liability | $ 242,700 | |||
Decrease from other reconciling items | $ 198,100 | |||
Effective tax rate (as a percent) | 33% | 79% | 1% | |
Change in valuation allowance | $ 11,391 | $ 15,421 | $ 86,539 | |
Foreign net operating loss carryforwards | 61,600 | |||
Tullow | ||||
Income Taxes | ||||
Decrease from pre-emption transaction | $ 44,600 | |||
United States | ||||
Income Taxes | ||||
Effective tax rate (as a percent) | 10% | 2% | 7% | |
Change in valuation allowance | $ (12,300) | $ 6,600 | $ 96,600 | |
Foreign net operating loss carryforwards not expiring | $ 385,900 | |||
Ghana | ||||
Income Taxes | ||||
Effective tax rate (as a percent) | 35% | 35% | 35% | |
Equatorial Guinea | ||||
Income Taxes | ||||
Effective tax rate (as a percent) | 36% | 35% | 34% | |
Foreign | ||||
Income Taxes | ||||
Effective tax rate (as a percent) | 0% | |||
Federal statutory income tax rate (as a percent) | 0% |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) and Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | |||
Income (loss) before income taxes | $ 337,067 | $ (43,380) | $ (416,795) |
Components of the provision for income taxes attributable to income (loss) before income taxes | |||
Current | 308,003 | 103,630 | 37,378 |
Deferred | (197,487) | (69,174) | (42,587) |
Income tax expense (benefit) | 110,516 | 34,456 | (5,209) |
Reconciliation of income tax expense and the reported effective tax rate | |||
Tax at statutory rate | 70,784 | (9,110) | (87,527) |
Foreign income (loss) taxed at different rates | 20,663 | 17,344 | (1,771) |
Non-deductible compensation | 3,012 | 2,775 | 890 |
Non-deductible and other items | 3,993 | 1,719 | 387 |
Tax shortfall (windfall) on equity-based compensation, net | 673 | 6,307 | 1,175 |
Change in valuation allowance | 11,391 | 15,421 | 86,539 |
U.S. tax loss carryback rate differential | 0 | 0 | (4,902) |
Income tax expense (benefit) | $ 110,516 | $ 34,456 | $ (5,209) |
Effective tax rate (as a percent) | 33% | 79% | 1% |
Impact of (gains) losses incurred in jurisdictions in which the company is not subject to taxes on effective tax rate | $ 21,000 | $ 61,600 | $ (2,900) |
United States | |||
Income Taxes | |||
Income (loss) before income taxes | 73,529 | (75,948) | (338,746) |
Components of the provision for income taxes attributable to income (loss) before income taxes | |||
Current | 7,174 | 282 | (12,208) |
Deferred | 84 | 1,202 | 34,831 |
Foreign | |||
Income Taxes | |||
Income (loss) before income taxes | 263,538 | 32,568 | (78,049) |
Components of the provision for income taxes attributable to income (loss) before income taxes | |||
Current | 300,829 | 103,348 | 49,586 |
Deferred | $ (197,571) | $ (70,376) | $ (77,418) |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Foreign capitalized operating expenses | $ 196,018 | $ 172,836 |
Foreign net operating losses | 19,297 | 35,518 |
United States net operating losses | 81,040 | 109,094 |
United States deferred interest expense | 17,421 | 6,725 |
Equity compensation | 7,916 | 12,424 |
Unrealized derivative losses | 0 | 21,710 |
Asset retirement obligation and other | 67,083 | 55,859 |
Total deferred tax assets | 388,775 | 414,166 |
Valuation allowance | (312,968) | (318,343) |
Total deferred tax assets, net | 75,807 | 95,823 |
Deferred tax liabilities: | ||
Depletion, depreciation and amortization related to property and equipment | (512,019) | (806,861) |
Other deferred tax liabilities | (32,233) | 0 |
Total deferred tax liabilities | (544,252) | (806,861) |
Net deferred tax liability | $ (468,445) | $ (711,038) |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income (loss) allocable to common stockholders | $ 226,551 | $ (77,836) | $ (411,586) |
Weighted average number of shares outstanding: | |||
Basic (in shares) | 455,346 | 416,943 | 405,212 |
Restricted stock awards and units (in shares) | 19,511 | 0 | 0 |
Diluted (in shares) | 474,857 | 416,943 | 405,212 |
Net income (loss) per share: | |||
Basic (in dollars per share) | $ 0.50 | $ (0.19) | $ (1.02) |
Diluted (in dollars per share) | $ 0.48 | $ (0.19) | $ (1.02) |
Outstanding restricted stock awards and units excluded from the computations of diluted net income per share (in shares) | 100 | 19,000 | 6,100 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) well | Dec. 31, 2021 USD ($) | Aug. 31, 2021 USD ($) | |
Greater Tortue FPSO | BP Operator | |||
Commitments and contingencies | |||
Contract liability, noncurrent | $ 200.2 | $ 200.2 | |
Gulf of Mexico | Bureau Of Ocean Energy Management | Surety Bond | |||
Commitments and contingencies | |||
Required performance bonds | 195.5 | $ 195.5 | |
Gulf of Mexico | Third Party | Surety Bond | |||
Commitments and contingencies | |||
Required performance bonds | $ 9.7 | $ 3.5 | |
Equatorial Guinea | |||
Commitments and contingencies | |||
Number of development wells | well | 3 | ||
Number of exploration wells | well | 1 |
Additional Financial Informat_3
Additional Financial Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued liabilities: | ||
Exploration, development and production | $ 80,598 | $ 61,881 |
Revenue payable | 26,087 | 31,986 |
Current asset retirement obligations | 1,732 | 3,222 |
General and administrative expenses | 32,069 | 27,980 |
Interest | 44,740 | 31,117 |
Income taxes | 127,183 | 69,392 |
Taxes other than income | 1,524 | 2,854 |
Derivatives | 6,440 | 19,302 |
Other | 4,833 | 2,936 |
Accrued liabilities | $ 325,206 | $ 250,670 |
Additional Financial Informat_4
Additional Financial Information - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) well | Dec. 31, 2022 USD ($) well | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Gain on sale of assets | $ 50,471 | $ 1,564 | $ 92,163 | |
Proceeds on sale of assets | $ 168,703 | $ 6,354 | 99,118 | |
Farm Down Agreement | Blocks Offshore Sao Tome and Principe Suriname and Namibia | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gain on sale of assets | $ 50,000 | $ 92,100 | ||
Number of wells with appraisal plan | well | 1 | 1 | ||
Proceeds on sale of assets | $ 50,000 |
Additional Financial Informat_5
Additional Financial Information - Other Expenses, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Additional Financial Information | |||
Loss on disposal of inventory | $ 1,521 | $ 1,239 | $ 8,607 |
Gain on insurance settlements | (7,000) | 0 | 0 |
(Gain) loss on asset retirement obligations liability settlements | (3,278) | 6,351 | 1,966 |
Restructuring charges | (4) | 2,584 | 16,474 |
Other, net | (293) | (63) | 10,755 |
Other expenses, net | $ (9,054) | $ 10,111 | $ 37,802 |
Business Segment Information -
Business Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable geographic areas | 4 |
Business Segment Information _2
Business Segment Information - Financial Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Oct. 13, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Oct. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||||||
Oil and gas revenue | $ 2,245,355,000 | $ 1,332,013,000 | $ 804,033,000 | ||||||
Gain on sale of assets | 50,471,000 | 1,564,000 | 92,163,000 | ||||||
Other income, net | 3,949,000 | 262,000 | 2,000 | ||||||
Total revenues and other income | 2,299,775,000 | 1,333,839,000 | 896,198,000 | ||||||
Oil and gas production | 403,056,000 | 346,006,000 | 338,477,000 | ||||||
Facilities insurance modifications, net | 6,243,000 | (1,586,000) | 13,161,000 | ||||||
Exploration expenses | 134,230,000 | 65,382,000 | 84,616,000 | ||||||
General and administrative | 100,856,000 | 91,529,000 | 72,142,000 | ||||||
Depletion, depreciation and amortization | 498,256,000 | 467,221,000 | 485,862,000 | ||||||
Impairment of long-lived assets | $ 3,200,000 | $ 150,800,000 | 449,969,000 | 0 | 153,959,000 | ||||
Interest and other financing costs, net | 118,260,000 | 128,371,000 | 109,794,000 | ||||||
Derivatives, net | 260,892,000 | 270,185,000 | 17,180,000 | ||||||
Other expenses, net | (9,054,000) | 10,111,000 | 37,802,000 | ||||||
Total costs and expenses | 1,962,708,000 | 1,377,219,000 | 1,312,993,000 | ||||||
Income (loss) before income taxes | 337,067,000 | (43,380,000) | (416,795,000) | ||||||
Income tax expense (benefit) | 110,516,000 | 34,456,000 | (5,209,000) | ||||||
Net income (loss) | 226,551,000 | (77,836,000) | (411,586,000) | ||||||
Consolidated capital expenditures | 611,588,000 | 924,214,000 | 273,979,000 | ||||||
Property and equipment, net | 3,320,913,000 | 3,842,647,000 | 4,183,987,000 | 3,320,913,000 | |||||
Total assets | 3,867,593,000 | 4,579,988,000 | 4,940,651,000 | 3,867,593,000 | |||||
Proceeds on sale of assets | 168,703,000 | 6,354,000 | 99,118,000 | ||||||
Anadarko WCTP | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total purchase price | $ 465,367,000 | ||||||||
Tullow | Jubilee Unit Area And Ten Fields | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Proceeds on sale of assets | $ 118,200,000 | ||||||||
Marubeni | Kodiak Field | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total purchase price | $ 29,000,000 | ||||||||
Corporate & Other | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Oil and gas revenue | 0 | 0 | 0 | ||||||
Gain on sale of assets | 50,000,000 | 1,564,000 | 92,079,000 | ||||||
Other income, net | 386,002,000 | 395,073,000 | 120,135,000 | ||||||
Total revenues and other income | 436,002,000 | 396,637,000 | 212,214,000 | ||||||
Oil and gas production | 0 | 0 | 0 | ||||||
Facilities insurance modifications, net | 0 | 0 | 0 | ||||||
Exploration expenses | 6,576,000 | 6,286,000 | 41,163,000 | ||||||
General and administrative | 180,594,000 | 172,869,000 | 129,801,000 | ||||||
Depletion, depreciation and amortization | 1,614,000 | 1,649,000 | 3,345,000 | ||||||
Impairment of long-lived assets | 0 | 0 | |||||||
Interest and other financing costs, net | 114,598,000 | 109,493,000 | 73,612,000 | ||||||
Derivatives, net | 260,892,000 | 270,185,000 | 17,180,000 | ||||||
Other expenses, net | 496,000 | 4,010,000 | 21,312,000 | ||||||
Total costs and expenses | 564,770,000 | 564,492,000 | 286,413,000 | ||||||
Income (loss) before income taxes | (128,768,000) | (167,855,000) | (74,199,000) | ||||||
Income tax expense (benefit) | 10,621,000 | 6,217,000 | (3,212,000) | ||||||
Net income (loss) | (139,389,000) | (174,072,000) | (70,987,000) | ||||||
Consolidated capital expenditures | (41,986,000) | 3,791,000 | (58,293,000) | ||||||
Property and equipment, net | 22,052,000 | 16,847,000 | 17,821,000 | 22,052,000 | |||||
Total assets | 12,654,827,000 | 19,554,236,000 | 17,108,138,000 | 12,654,827,000 | |||||
Eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Oil and gas revenue | 0 | 0 | 0 | ||||||
Gain on sale of assets | 0 | 0 | 0 | ||||||
Other income, net | (388,236,000) | (396,096,000) | (120,415,000) | ||||||
Total revenues and other income | (388,236,000) | (396,096,000) | (120,415,000) | ||||||
Oil and gas production | 0 | 0 | 0 | ||||||
Facilities insurance modifications, net | 0 | 0 | 0 | ||||||
Exploration expenses | 0 | 0 | 0 | ||||||
General and administrative | (127,343,000) | (124,128,000) | (96,101,000) | ||||||
Depletion, depreciation and amortization | 0 | 0 | 0 | ||||||
Impairment of long-lived assets | 0 | 0 | |||||||
Interest and other financing costs, net | 0 | (1,784,000) | (7,134,000) | ||||||
Derivatives, net | 0 | 0 | 0 | ||||||
Other expenses, net | (260,893,000) | (270,185,000) | (17,180,000) | ||||||
Total costs and expenses | (388,236,000) | (396,097,000) | (120,415,000) | ||||||
Income (loss) before income taxes | 0 | 1,000 | 0 | ||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||
Net income (loss) | 0 | 1,000 | 0 | ||||||
Consolidated capital expenditures | 0 | 0 | 0 | ||||||
Property and equipment, net | 0 | 0 | 0 | 0 | |||||
Total assets | (14,869,520,000) | (25,046,118,000) | (20,809,367,000) | (14,869,520,000) | |||||
Ghana | Anadarko WCTP | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total purchase price | $ 465,400,000 | ||||||||
Ghana | Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Oil and gas revenue | 1,350,962,000 | 644,232,000 | 366,515,000 | ||||||
Gain on sale of assets | 0 | 0 | 0 | ||||||
Other income, net | 428,000 | 6,000 | 2,000 | ||||||
Total revenues and other income | 1,351,390,000 | 644,238,000 | 366,517,000 | ||||||
Oil and gas production | 206,486,000 | 151,079,000 | 169,357,000 | ||||||
Facilities insurance modifications, net | 6,243,000 | (1,586,000) | 13,161,000 | ||||||
Exploration expenses | 14,987,000 | 1,527,000 | 182,000 | ||||||
General and administrative | 15,310,000 | 12,179,000 | 13,506,000 | ||||||
Depletion, depreciation and amortization | 289,058,000 | 240,901,000 | 235,772,000 | ||||||
Impairment of long-lived assets | 450,357,000 | 0 | |||||||
Interest and other financing costs, net | 64,620,000 | 51,279,000 | 54,530,000 | ||||||
Derivatives, net | 0 | 0 | 0 | ||||||
Other expenses, net | 233,785,000 | 206,466,000 | (27,925,000) | ||||||
Total costs and expenses | 1,280,846,000 | 661,845,000 | 458,583,000 | ||||||
Income (loss) before income taxes | 70,544,000 | (17,607,000) | (92,066,000) | ||||||
Income tax expense (benefit) | 28,091,000 | (4,290,000) | (30,486,000) | ||||||
Net income (loss) | 42,453,000 | (13,317,000) | (61,580,000) | ||||||
Consolidated capital expenditures | 98,540,000 | 575,472,000 | 44,146,000 | ||||||
Property and equipment, net | 1,293,372,000 | 1,202,937,000 | 1,885,116,000 | 1,293,372,000 | |||||
Total assets | 1,397,802,000 | 2,886,242,000 | 3,125,835,000 | 1,397,802,000 | |||||
Equatorial Guinea | Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Oil and gas revenue | 346,783,000 | 260,520,000 | 152,501,000 | ||||||
Gain on sale of assets | 0 | 0 | 0 | ||||||
Other income, net | 3,350,000 | 0 | 0 | ||||||
Total revenues and other income | 350,133,000 | 260,520,000 | 152,501,000 | ||||||
Oil and gas production | 90,602,000 | 93,032,000 | 80,813,000 | ||||||
Facilities insurance modifications, net | 0 | 0 | 0 | ||||||
Exploration expenses | 7,378,000 | 5,700,000 | 8,290,000 | ||||||
General and administrative | 6,703,000 | 4,343,000 | 4,865,000 | ||||||
Depletion, depreciation and amortization | 53,765,000 | 56,468,000 | 64,786,000 | ||||||
Impairment of long-lived assets | 0 | 0 | |||||||
Interest and other financing costs, net | (2,494,000) | (1,661,000) | (1,248,000) | ||||||
Derivatives, net | 0 | 0 | 0 | ||||||
Other expenses, net | 8,397,000 | 41,891,000 | 2,281,000 | ||||||
Total costs and expenses | 164,351,000 | 199,773,000 | 159,787,000 | ||||||
Income (loss) before income taxes | 185,782,000 | 60,747,000 | (7,286,000) | ||||||
Income tax expense (benefit) | 72,814,000 | 37,487,000 | 2,428,000 | ||||||
Net income (loss) | 112,968,000 | 23,260,000 | (9,714,000) | ||||||
Consolidated capital expenditures | 36,036,000 | 77,364,000 | 38,126,000 | ||||||
Property and equipment, net | 426,365,000 | 396,737,000 | 460,975,000 | 426,365,000 | |||||
Total assets | 689,222,000 | 1,463,211,000 | 911,159,000 | 689,222,000 | |||||
Mauritania / Senegal | Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Oil and gas revenue | 0 | 0 | 0 | ||||||
Gain on sale of assets | 0 | 0 | 0 | ||||||
Other income, net | 0 | 0 | 0 | ||||||
Total revenues and other income | 0 | 0 | 0 | ||||||
Oil and gas production | 0 | 0 | 0 | ||||||
Facilities insurance modifications, net | 0 | 0 | 0 | ||||||
Exploration expenses | 82,526,000 | 10,639,000 | 8,189,000 | ||||||
General and administrative | 9,798,000 | 8,601,000 | 7,464,000 | ||||||
Depletion, depreciation and amortization | 412,000 | 61,000 | 61,000 | ||||||
Impairment of long-lived assets | 0 | 0 | |||||||
Interest and other financing costs, net | (69,644,000) | (44,831,000) | (27,339,000) | ||||||
Derivatives, net | 0 | 0 | 0 | ||||||
Other expenses, net | (1,178,000) | (2,189,000) | 4,829,000 | ||||||
Total costs and expenses | 21,914,000 | (27,719,000) | (6,796,000) | ||||||
Income (loss) before income taxes | (21,914,000) | 27,719,000 | 6,796,000 | ||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||
Net income (loss) | (21,914,000) | 27,719,000 | 6,796,000 | ||||||
Consolidated capital expenditures | 407,982,000 | 170,690,000 | 126,803,000 | ||||||
Property and equipment, net | 580,920,000 | 1,396,884,000 | 918,683,000 | 580,920,000 | |||||
Total assets | 823,411,000 | 2,026,776,000 | 1,346,622,000 | 823,411,000 | |||||
U.S. Gulf of Mexico(3) | Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Oil and gas revenue | 547,610,000 | 427,261,000 | 285,017,000 | ||||||
Gain on sale of assets | 471,000 | 0 | 84,000 | ||||||
Other income, net | 2,405,000 | 1,279,000 | 280,000 | ||||||
Total revenues and other income | 550,486,000 | 428,540,000 | 285,381,000 | ||||||
Oil and gas production | 105,968,000 | 101,895,000 | 88,307,000 | ||||||
Facilities insurance modifications, net | 0 | 0 | 0 | ||||||
Exploration expenses | 22,763,000 | 41,230,000 | 26,792,000 | ||||||
General and administrative | 15,794,000 | 17,665,000 | 12,607,000 | ||||||
Depletion, depreciation and amortization | 153,407,000 | 168,142,000 | 181,898,000 | ||||||
Impairment of long-lived assets | (388,000) | 153,959,000 | |||||||
Interest and other financing costs, net | 11,180,000 | 15,875,000 | 17,373,000 | ||||||
Derivatives, net | 0 | 0 | 0 | ||||||
Other expenses, net | 10,339,000 | 30,118,000 | 54,485,000 | ||||||
Total costs and expenses | 319,063,000 | 374,925,000 | 535,421,000 | ||||||
Income (loss) before income taxes | 231,423,000 | 53,615,000 | (250,040,000) | ||||||
Income tax expense (benefit) | (1,010,000) | (4,958,000) | 26,061,000 | ||||||
Net income (loss) | 232,433,000 | 58,573,000 | (276,101,000) | ||||||
Consolidated capital expenditures | 111,016,000 | 96,897,000 | 123,197,000 | ||||||
Property and equipment, net | 998,204,000 | 829,242,000 | 901,392,000 | 998,204,000 | |||||
Total assets | $ 3,171,851,000 | $ 3,695,641,000 | $ 3,258,264,000 | $ 3,171,851,000 |
Business Segment Information _3
Business Segment Information - Consolidated Capital Expenditures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | |||
Oil and gas assets | $ 787,297 | $ 472,631 | $ 379,593 |
Acquisition of oil and gas properties | 22,078 | 465,367 | 0 |
Changes in capital accruals | 396 | (18,534) | (42,315) |
Exploration expense, excluding unsuccessful well costs and leasehold impairments | 47,289 | 46,563 | 61,459 |
Capitalized interest | (84,343) | (46,098) | (25,013) |
Proceeds on sale of assets | (168,703) | (6,354) | (99,118) |
Other | 7,574 | 10,639 | (627) |
Consolidated capital expenditures | $ 611,588 | $ 924,214 | $ 273,979 |
Condensed Parent Company Fina_2
Condensed Parent Company Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||||
Cash and cash equivalents | $ 183,405 | $ 131,620 | $ 149,027 | |
Prepaid expenses and other | 24,722 | 18,899 | ||
Derivatives | 7,344 | 5,689 | ||
Total current assets | 468,721 | 541,952 | ||
Deferred financing costs, net of accumulated amortization of $13,263 and $19,912 at December 31, 2022 and December 31, 2021, respectively | 4,640 | 1,090 | ||
Derivatives | 1,725 | 1,026 | ||
Restricted cash | 3,416 | 305 | 542 | |
Total assets | 4,579,988 | 4,940,651 | 3,867,593 | |
Current liabilities: | ||||
Accounts payable | 212,275 | 184,403 | ||
Accrued liabilities | 325,206 | 250,670 | ||
Derivatives | 6,773 | 65,879 | ||
Total current liabilities | 574,254 | 530,952 | ||
Long-term debt, net | 2,195,911 | 2,590,495 | ||
Derivatives | 778 | 6,298 | ||
Other long-term liabilities | 251,952 | 250,394 | ||
Stockholders’ equity: | ||||
Preference shares, $0.01 par value; 200,000,000 authorized shares; zero issued at December 31, 2022 and December 31, 2021 | 0 | 0 | ||
Common stock, $0.01 par value; 2,000,000,000 authorized shares; 500,161,421 and 496,152,331 issued at December 31, 2022 and December 31, 2021, respectively | 5,002 | 4,962 | ||
Additional paid-in capital | 2,505,694 | 2,473,674 | ||
Accumulated deficit | (1,485,841) | (1,712,392) | ||
Treasury stock, at cost, 44,263,269 shares at December 31, 2022 and December 31, 2021, respectively | (237,007) | (237,007) | ||
Total stockholders’ equity | 787,848 | 529,237 | $ 440,154 | $ 841,702 |
Total liabilities and stockholders’ equity | 4,579,988 | 4,940,651 | ||
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 2,286 | 6,693 | ||
Derivatives receivable - related party | 413 | 1,474 | ||
Prepaid expenses and other | 1,051 | 957 | ||
Derivatives | 0 | 5,689 | ||
Derivatives—related party | 0 | 1,217 | ||
Total current assets | 3,750 | 16,030 | ||
Investment in subsidiaries at equity | 2,403,785 | 2,092,915 | ||
Long-term note receivable from subsidiary | 0 | 0 | ||
Deferred financing costs, net of accumulated amortization of $13,263 and $19,912 at December 31, 2022 and December 31, 2021, respectively | 4,640 | 1,090 | ||
Derivatives | 0 | 1,026 | ||
Derivatives—related party | 0 | 84 | ||
Restricted cash | 305 | 305 | ||
Long-term deferred tax asset | 461 | 18,687 | ||
Total assets | 2,412,941 | 2,130,137 | ||
Current liabilities: | ||||
Accounts payable | 14 | 242 | ||
Accounts payable to subsidiaries | 114,312 | 80,595 | ||
Accrued liabilities | 27,500 | 32,239 | ||
Derivatives | 0 | 1,217 | ||
Derivatives - related party | 0 | 5,689 | ||
Total current liabilities | 141,826 | 119,982 | ||
Long-term debt, net | 1,483,267 | 1,479,808 | ||
Derivatives | 0 | 84 | ||
Derivatives - related party | 0 | 1,026 | ||
Other long-term liabilities | 0 | 0 | ||
Stockholders’ equity: | ||||
Preference shares, $0.01 par value; 200,000,000 authorized shares; zero issued at December 31, 2022 and December 31, 2021 | 0 | 0 | ||
Common stock, $0.01 par value; 2,000,000,000 authorized shares; 500,161,421 and 496,152,331 issued at December 31, 2022 and December 31, 2021, respectively | 5,002 | 4,962 | ||
Additional paid-in capital | 2,505,694 | 2,473,674 | ||
Accumulated deficit | (1,485,841) | (1,712,392) | ||
Treasury stock, at cost, 44,263,269 shares at December 31, 2022 and December 31, 2021, respectively | (237,007) | (237,007) | ||
Total stockholders’ equity | 787,848 | 529,237 | ||
Total liabilities and stockholders’ equity | $ 2,412,941 | $ 2,130,137 |
Condensed Parent Company Fina_3
Condensed Parent Company Financial Statements - Balance Sheet - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Deferred financing costs, accumulated amortization | $ 13,263 | $ 19,912 |
Preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preference shares, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Preference shares, issued shares (in shares) | 0 | 0 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized shares (in shares) | 2,000,000,000 | 2,000,000,000 |
Common shares, issued shares (in shares) | 500,161,421 | 496,152,331 |
Treasury stock shares (in shares) | 44,263,269 | 44,263,269 |
Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Deferred financing costs, accumulated amortization | $ 13,263 | $ 19,912 |
Preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preference shares, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Preference shares, issued shares (in shares) | 0 | 0 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized shares (in shares) | 2,000,000,000 | 2,000,000,000 |
Common shares, issued shares (in shares) | 500,161,421 | 496,152,331 |
Treasury stock shares (in shares) | 44,263,269 | 44,263,269 |
Condensed Parent Company Fina_4
Condensed Parent Company Financial Statements - Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues and other income: | |||
Oil and gas revenue | $ 2,245,355 | $ 1,332,013 | $ 804,033 |
Total revenues and other income | 2,299,775 | 1,333,839 | 896,198 |
Costs and expenses: | |||
General and administrative | 100,856 | 91,529 | 72,142 |
Interest and other financing costs, net | 118,260 | 128,371 | 109,794 |
Derivatives, net | 260,892 | 270,185 | 17,180 |
Other expenses, net | (9,054) | 10,111 | 37,802 |
Total costs and expenses | 1,962,708 | 1,377,219 | 1,312,993 |
Income (loss) before income taxes | 337,067 | (43,380) | (416,795) |
Income tax expense (benefit) | 110,516 | 34,456 | (5,209) |
Net income (loss) | 226,551 | (77,836) | (411,586) |
Parent Company | |||
Revenues and other income: | |||
Oil and gas revenue | 0 | 0 | 0 |
Other income—related party | 75,740 | 20,307 | 2,642 |
Total revenues and other income | 75,740 | 20,307 | 2,642 |
Costs and expenses: | |||
General and administrative | 44,180 | 38,810 | 40,162 |
General and administrative recoveries—related party | (3,772) | 79 | 4,112 |
Interest and other financing costs, net | 123,247 | 98,649 | 59,200 |
Interest and other financing costs, net—related party | 0 | (2,446) | (5,889) |
Derivatives, net | 75,740 | 20,307 | 2,642 |
Other expenses, net | 17 | (61) | 0 |
Equity in (earnings) losses of subsidiaries | (415,546) | (57,195) | 315,423 |
Total costs and expenses | (176,134) | 98,143 | 415,650 |
Income (loss) before income taxes | 251,874 | (77,836) | (413,008) |
Income tax expense (benefit) | 25,323 | 0 | (1,422) |
Net income (loss) | $ 226,551 | $ (77,836) | $ (411,586) |
Dividends declared per common share (in dollars per share) | $ 0 | $ 0 | $ 0.0452 |
Condensed Parent Company Fina_5
Condensed Parent Company Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income (loss) | $ 226,551 | $ (77,836) | $ (411,586) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Equity-based compensation | 34,546 | 31,651 | 32,706 |
Depreciation and amortization | 508,657 | 477,801 | 495,209 |
Deferred income taxes | (197,487) | (69,174) | (42,587) |
Change in fair value of derivatives | 275,465 | 277,705 | 22,800 |
Cash settlements on derivatives | (344,468) | (231,767) | (10,944) |
Loss on extinguishment of debt | 192 | 19,625 | 2,902 |
Changes in assets and liabilities: | |||
Decrease in receivables | 68,829 | (34,246) | 92,093 |
(Increase) decrease in prepaid expenses and other | (11,039) | 15,218 | 7,882 |
Net cash provided by operating activities | 1,130,476 | 374,344 | 196,145 |
Investing activities | |||
Net cash used in investing activities | (703,855) | (973,377) | (345,587) |
Financing activities | |||
Borrowings under long-term debt | 0 | 725,000 | 300,000 |
Payments on long-term debt | (405,000) | (1,050,000) | (250,000) |
Net proceeds from issuance of senior notes | 0 | 839,375 | 0 |
Net proceeds from issuance of common stock | 0 | 136,006 | 0 |
Tax withholdings on restricted stock units | (2,753) | (1,100) | (4,947) |
Dividends | (655) | (512) | (19,271) |
Deferred financing costs | (6,288) | (24,604) | (5,922) |
Net cash provided by (used in) financing activities | (414,696) | 624,165 | 69,860 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 11,925 | 25,132 | (79,582) |
Cash, cash equivalents and restricted cash at end of period | 174,896 | 149,764 | 229,346 |
Cash, cash equivalents and restricted cash at beginning of period | 186,821 | 174,896 | 149,764 |
Parent Company | |||
Operating activities | |||
Net income (loss) | 226,551 | (77,836) | (411,586) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Equity in (earnings) losses of subsidiaries | (415,546) | (57,195) | 315,423 |
Equity-based compensation | 34,546 | 31,651 | 32,706 |
Depreciation and amortization | 6,359 | 5,638 | 8,644 |
Deferred income taxes | 18,034 | 0 | (1,422) |
Other income—related party | (4,353) | 6,582 | (2,642) |
Change in fair value of derivatives | 75,741 | 20,307 | 2,642 |
Cash settlements on derivatives | (70,327) | (28,363) | 0 |
Loss on extinguishment of debt | 192 | 4,403 | 0 |
Changes in assets and liabilities: | |||
Decrease in receivables | 306 | 134 | 856 |
(Increase) decrease in prepaid expenses and other | (94) | (49) | (480) |
Decrease due to/from related party | 33,214 | 218,008 | 162,897 |
Increase (decrease) in accounts payable and accrued liabilities | (4,159) | 18,003 | 2,509 |
Net cash provided by operating activities | (99,536) | 141,283 | 109,547 |
Investing activities | |||
Investment in subsidiaries | 104,676 | (1,001,494) | (190,089) |
Net cash used in investing activities | 104,676 | (1,001,494) | (190,089) |
Financing activities | |||
Borrowings under long-term debt | 0 | 100,000 | 100,000 |
Payments on long-term debt | 0 | (200,000) | 0 |
Net proceeds from issuance of senior notes | 0 | 839,375 | 0 |
Net proceeds from issuance of common stock | 0 | 136,006 | 0 |
Tax withholdings on restricted stock units | (2,753) | (1,100) | (4,947) |
Dividends | (655) | (512) | (19,271) |
Deferred financing costs | (6,139) | (8,031) | (496) |
Net cash provided by (used in) financing activities | (9,547) | 865,738 | 75,286 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (4,407) | 5,527 | (5,256) |
Cash, cash equivalents and restricted cash at end of period | 6,998 | 1,471 | 6,727 |
Cash, cash equivalents and restricted cash at beginning of period | $ 2,591 | $ 6,998 | $ 1,471 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for credit losses | |||
Changes in valuation and qualifying Accounts | |||
Balance at the beginning of the period | $ 5,189 | $ 5,675 | $ 2,748 |
Charged to Costs and Expenses | 2,509 | 1,019 | 1,800 |
Charged To Other Accounts | (687) | (1,505) | 1,127 |
Deductions From Reserves | 0 | 0 | 0 |
Balance at the end of the period | 7,011 | 5,189 | 5,675 |
Allowance for deferred tax assets | |||
Changes in valuation and qualifying Accounts | |||
Balance at the beginning of the period | 318,343 | 288,288 | 201,749 |
Charged to Costs and Expenses | (5,616) | 30,055 | 86,539 |
Charged To Other Accounts | 0 | 0 | 0 |
Deductions From Reserves | 0 | 0 | 0 |
Balance at the end of the period | $ 312,727 | $ 318,343 | $ 288,288 |