Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Alta Mesa Holdings, LP |
Entity Central Index Key | 1518403 |
Document Type | 10-Q |
Document Period End Date | 31-Mar-15 |
Amendment Flag | FALSE |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $4,738 | $1,349 |
Short-term restricted cash | 105 | 23,793 |
Accounts receivable, net | 34,804 | 43,581 |
Other receivables | 12,368 | 33,738 |
Prepaid expenses and other current assets | 3,927 | 2,132 |
Derivative financial instruments | 46,551 | 59,803 |
Total current assets | 102,493 | 164,396 |
PROPERTY AND EQUIPMENT | ||
Oil and natural gas properties, successful efforts method, net | 621,435 | 686,176 |
Other property and equipment, net | 11,365 | 11,505 |
Total property and equipment, net | 632,800 | 697,681 |
OTHER ASSETS | ||
Long-term restricted cash | 900 | |
Investment in LLC - cost | 9,000 | 9,000 |
Deferred financing costs, net | 7,380 | 8,100 |
Notes receivable | 8,672 | 8,500 |
Advances to operators | 305 | 619 |
Deposits and other assets | 1,085 | 1,124 |
Derivative financial instruments | 33,569 | 27,271 |
Total other assets | 60,011 | 55,514 |
TOTAL ASSETS | 795,304 | 917,591 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 106,926 | 117,560 |
Current portion, asset retirement obligations | 909 | 1,136 |
Total current liabilities | 107,835 | 118,696 |
LONG-TERM LIABILITIES | ||
Asset retirement obligations, net of current portion | 62,179 | 61,736 |
Long-term debt | 758,735 | 767,608 |
Notes payable to founder | 24,838 | 24,540 |
Other long-term liabilities | 12,912 | 6,457 |
Total long-term liabilities | 858,664 | 860,341 |
TOTAL LIABILITIES | 966,499 | 979,037 |
Commitments and Contingencies (Note 10) | ||
PARTNERS' (DEFICIT) | -171,195 | -61,446 |
TOTAL LIABILITIES AND PARTNERS' (DEFICIT) | $795,304 | $917,591 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
OPERATING AND OTHER REVENUES | ||
Oil | $49,432 | $79,742 |
Natural gas | 8,241 | 18,685 |
Natural gas liquids | 2,676 | 4,942 |
Other revenues | 193 | 63 |
Total operating revenues | 60,542 | 103,432 |
Gain on sale of assets | 134 | 73,158 |
Gain (loss) - oil and natural gas derivative contracts | 26,759 | -10,699 |
Total operating and other revenues | 87,435 | 165,891 |
OPERATING EXPENSES | ||
Lease and plant operating expense | 18,394 | 19,054 |
Production and ad valorem taxes | 4,273 | 7,676 |
Workover expense | 3,322 | 2,765 |
Exploration expense | 24,508 | 9,479 |
Depreciation, depletion, and amortization expense | 40,725 | 29,279 |
Impairment expense | 73,050 | 902 |
Accretion expense | 544 | 558 |
General and administrative expense | 17,696 | 24,717 |
Total operating expenses | 182,512 | 94,430 |
INCOME (LOSS) FROM OPERATIONS | -95,077 | 71,461 |
OTHER INCOME (EXPENSE) | ||
Interest expense | -14,309 | -14,288 |
Interest income | 175 | 3 |
Total other income (expense) | -14,134 | -14,285 |
INCOME (LOSS) BEFORE STATE INCOME TAXES | -109,211 | 57,176 |
(Provision) For State Income Taxes | -283 | |
NET INCOME (LOSS) | ($109,211) | $56,893 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | ($109,211) | $56,893 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion, and amortization expense | 40,725 | 29,279 |
Impairment expense | 73,050 | 902 |
Accretion expense | 544 | 558 |
Amortization of loan costs | 721 | 715 |
Amortization of debt discount | 127 | 128 |
Dry hole expense | 18,382 | 6,259 |
Expired leases | 324 | 144 |
(Gain) loss - oil and natural gas derivative contracts | -26,759 | 10,699 |
Settlements on derivative contracts | 33,712 | -1,283 |
Interest converted into debt | 298 | 298 |
Interest on notes receivable | -172 | |
(Gain) on sale of assets | -134 | -73,158 |
Changes in assets and liabilities: | ||
Accounts receivable | 8,777 | -6,050 |
Other receivables | 21,370 | -207 |
Prepaid expenses and other non-current assets | -1,442 | 2,999 |
Settlement of asset retirement obligation | -491 | -1,073 |
Accounts payable, accrued liabilities, and other long-term liabilities | 24,106 | 29,732 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 83,927 | 56,835 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures for property and equipment | -95,586 | -83,527 |
Proceeds from sale of property | 173,595 | |
Investment in restricted cash related to property divestitures | 24,588 | |
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES | -70,998 | 90,068 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from long-term debt | 21,000 | 22,500 |
Repayments of long-term debt | -30,000 | -169,270 |
Capital distributions | -540 | |
NET CASH USED IN FINANCING ACTIVITIES | -9,540 | -146,770 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 3,389 | 133 |
CASH AND CASH EQUIVALENTS, beginning of period | 1,349 | 6,537 |
CASH AND CASH EQUIVALENTS, end of period | 4,738 | 6,670 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 1,993 | 1,832 |
Cash (received) during the period for state taxes | -125 | |
Change in asset retirement obligations | 363 | 1,590 |
Change in accruals or liabilities for capital expenditures | ($28,474) | ($1,753) |
Description_Of_Business
Description Of Business | 3 Months Ended |
Mar. 31, 2015 | |
Description Of Business [Abstract] | |
Description Of Business | 1. DESCRIPTION OF BUSINESS |
Alta Mesa Holdings, LP and its subsidiaries (“we,” “us,” “our,” the “Company,” and “Alta Mesa”) is an independent energy company engaged primarily in the acquisition, exploration, development, and production of onshore oil and natural gas properties. Our core properties are located primarily in Oklahoma, Louisiana, and Texas. | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The Company has provided a discussion of significant accounting policies in Note 2 in its Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Annual Report”). There have been no changes to the Company’s significant accounting policies since December 31, 2014. | |
Principles of Consolidation and Reporting | |
The consolidated financial statements reflect our accounts after elimination of all significant intercompany transactions and balances. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual consolidated financial statements for the year ended December 31, 2014, which were filed with the Securities and Exchange Commission in our 2014 Annual Report. | |
The consolidated financial statements included herein as of March 31, 2015, and for the three month periods ended March 31, 2015 and 2014, are unaudited, and in the opinion of management, the information furnished reflects all material adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of consolidated financial position and of the results of operations for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Certain minor reclassifications of prior period consolidated financial statements have been made to conform to current reporting practices. The reclassifications had no impact on net income (loss) or partners’ (deficit). The consolidated results of operations for interim periods are not necessarily indicative of results to be expected for a full year. | |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. | |
Reserve estimates significantly impact depreciation, depletion and amortization expense and potential impairments of oil and natural gas properties and are subject to change based on changes in oil and natural gas prices and trends and changes in estimated reserve quantities. We analyze estimates, including those related to oil and natural gas reserves, oil and natural gas revenues, the value of oil and natural gas properties, bad debts, asset retirement obligations, derivative contracts, income taxes and contingencies and litigation. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. | |
Recent Accounting Pronouncements | |
In March 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The guidance is effective for interim periods and annual periods beginning after December 15, 2015; however early adoption is permitted. The Company does not believe the adoption of this guidance will have a material impact on its financial position, results of operations or cash flows. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The update provides guidance concerning the recognition and measurement of revenue from contracts with customers. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016. The standard is required to be adopted using either the full retrospective approach, with all prior periods presented adjusted, or the modified retrospective approach, with a cumulative adjustment to retained earnings on the opening balance sheet. In April 2015, the FASB proposed to delay the effective date one year, beginning in fiscal year 2018. The proposal will be subject to the FASB’s due process requirement, which includes a period for public comments. We are currently evaluating the impact of adopting this standard on our consolidated financial statements, and whether to use the full retrospective approach or the modified retrospective approach. | |
Significant_Divestitures
Significant Divestitures | 3 Months Ended | ||
Mar. 31, 2015 | |||
Significant Divestitures [Abstract] | |||
Significant Divestitures | 3. SIGNIFICANT DIVESTITURES | ||
Eagleville Divestiture | |||
On March 25, 2014, we closed the sale of certain of our properties located primarily in Karnes County, Texas to Memorial Production Operating LLC, comprising a portion of our Eagleville field (“Eagleville divestiture”). The properties sold included a working interest in all of our producing wells as of the effective date of January 1, 2014. We retained a net profits interest in these wells based on 50% of our original working interest in 2014, declining to 30% in 2015, 15% in 2016, and zero in 2017. Also included in the sale was a 30% undivided interest in all our Eagleville mineral leases and interests, and 30% of our working interest in all our wells in progress on December 31, 2013 or drilled after January 1, 2014. The Company received cash consideration of $171 million after customary closing adjustments. We estimate the proved developed and undeveloped reserves sold were approximately 7.5 MMBOE, and we retained proved reserves of approximately 7.7 MMBOE, 67% of which were proved undeveloped as of December 31, 2014. We recorded a gain on sale from the Eagleville divestiture of $72.5 million during 2014, based on an allocation of basis between the properties sold and properties retained. | |||
The portion of Eagleville field sold contributed approximately $6.6 million in pre-tax profit for the three months ended March 31, 2014. | |||
Property_And_Equipment
Property And Equipment | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Property And Equipment [Abstract] | ||||||
Property And Equipment | ||||||
4. PROPERTY AND EQUIPMENT | ||||||
Property and equipment consists of the following: | ||||||
March 31, | December 31, | |||||
2015 | 2014 | |||||
(in thousands) | ||||||
(unaudited) | ||||||
OIL AND NATURAL GAS PROPERTIES | ||||||
Unproved properties | $ | 79,685 | $ | 84,620 | ||
Accumulated impairment | -3,351 | -3,749 | ||||
Unproved properties, net | 76,334 | 80,871 | ||||
Proved oil and natural gas properties | 1,468,331 | 1,417,785 | ||||
Accumulated depreciation, depletion, amortization and impairment | -923,230 | -812,480 | ||||
Proved oil and natural gas properties, net | 545,101 | 605,305 | ||||
TOTAL OIL AND NATURAL GAS PROPERTIES, net | 621,435 | 686,176 | ||||
LAND | 2,820 | 2,820 | ||||
OTHER PROPERTY AND EQUIPMENT | ||||||
Office furniture and equipment, vehicles | 17,881 | 17,302 | ||||
Accumulated depreciation | -9,336 | -8,617 | ||||
OTHER PROPERTY AND EQUIPMENT, net | 8,545 | 8,685 | ||||
TOTAL PROPERTY AND EQUIPMENT, net | $ | 632,800 | $ | 697,681 | ||
Fair_Value_Disclosures
Fair Value Disclosures | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair Value Disclosures | 5. FAIR VALUE DISCLOSURES | |||||||||||
We follow the guidance of ASC 820, “Fair Value Measurements and Disclosures,” in the estimation of fair values. ASC 820 provides a hierarchy of fair value measurements, based on the inputs to the fair value estimation process. It requires disclosure of fair values classified according to defined “levels,” which are based on the reliability of the evidence used to determine fair value, with Level 1 being the most reliable and Level 3 the least reliable. Level 1 evidence consists of observable inputs, such as quoted prices in an active market. Level 2 inputs typically correlate the fair value of the asset or liability to a similar, but not identical item which is actively traded. Level 3 inputs include at least some unobservable inputs, such as valuation models developed using the best information available in the circumstances. | ||||||||||||
The fair value of cash, accounts receivable, other current assets, and current liabilities approximate book value due to their short-term nature. The estimate of fair value of long-term debt under our senior secured revolving credit facility is not considered to be materially different from carrying value due to market rates of interest. The fair value of the notes payable to our founder is not practicable to determine. | ||||||||||||
Our senior notes are carried at historical cost, net of amortized discount; we estimate the fair value of the senior notes for disclosure purposes. We have estimated the fair value of our $450 million senior notes payable to be $344.3 million at March 31, 2015. This estimation is based on the most recent trading values of the notes at or near the reporting dates, which is a Level 1 determination. See Note 8 for information on long-term debt. | ||||||||||||
We utilize the modified Black-Scholes and the Turnbull Wakeman option pricing models to estimate the fair values of oil and natural gas derivative contracts. Inputs to these models include observable inputs from the New York Mercantile Exchange (“NYMEX”) for futures contracts, and inputs derived from NYMEX observable inputs, such as implied volatility of oil and natural gas prices. We have classified the fair values of all our oil and natural gas derivative contracts as Level 2. | ||||||||||||
Oil and natural gas properties are subject to impairment testing and potential impairment write down. Oil and natural gas properties with a carrying amount of $272.0 million were written down to their fair value of $198.9 million, resulting in an impairment charge of $73.1 million for the three months ended March 31, 2015. Oil and natural gas properties with a carrying amount of $1.2 million were written down to their fair value of $0.3 million, resulting in an impairment charge of $0.9 million for the three months ended March 31, 2014. Significant Level 3 assumptions used in the calculation of estimated discounted cash flows in the impairment analysis included our estimate of future oil and natural gas prices, production costs, development expenditures, estimated timing of production of proved reserves, appropriate risk-adjusted discount rates, and other relevant data. | ||||||||||||
New additions to asset retirement obligations result from estimations for new properties, and fair values for them are categorized as Level 3. Such estimations are based on present value techniques that utilize company-specific information for such inputs as cost and timing of plugging and abandonment of wells and facilities. We recorded $0.4 million and $0.2 million in additions to asset retirement obligations measured at fair value during the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||
The following table presents information about our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014, and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value: | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
(in thousands) | ||||||||||||
At March 31, 2015 (unaudited): | ||||||||||||
Financial Assets: | ||||||||||||
Derivative contracts for oil and natural gas | — | $ | 128,748 | — | $ | 128,748 | ||||||
Financial Liabilities: | ||||||||||||
Derivative contracts for oil and natural gas | — | $ | 48,628 | — | $ | 48,628 | ||||||
At December 31, 2014: | ||||||||||||
Financial Assets: | ||||||||||||
Derivative contracts for oil and natural gas | — | $ | 140,652 | — | $ | 140,652 | ||||||
Financial Liabilities: | ||||||||||||
Derivative contracts for oil and natural gas | — | $ | 53,578 | — | $ | 53,578 | ||||||
The amounts above are presented on a gross basis; presentation on our consolidated balance sheets utilizes netting of assets and liabilities with the same counterparty where master netting agreements are in place. | ||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Derivative Financial Instruments [Abstract] | ||||||||||||
Derivative Financial Instruments | 6. DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||
We account for our derivative contracts under the provisions of ASC 815, “Derivatives and Hedging.” We have entered into forward-swap contracts and collar contracts to reduce our exposure to price risk in the spot market for sales of oil and natural gas. We also have utilized financial basis swap contracts, which address the price differential between market-wide benchmark prices and other benchmark pricing referenced in certain of our crude oil and natural gas sales contracts. Substantially all of our hedging agreements are executed by affiliates of our lenders under the credit facility described in Note 8 below, and are collateralized by the security interests of the respective affiliated lenders in certain of our assets under the credit facility. The contracts settle monthly and are scheduled to coincide with either oil production equivalent to barrels (Bbl) per month or gas production equivalent to volumes in millions of British thermal units (MMbtu) per month. The contracts represent agreements between us and the counter-parties to exchange cash based on a designated price, or in the case of financial basis hedging contracts, based on a designated price differential between various benchmark prices. Cash settlement occurs monthly. No derivative contracts have been entered into for trading or speculative purposes. | ||||||||||||
We have not designated any of our derivative contracts as fair value or cash flow hedges; accordingly, we use mark-to-market accounting, recognizing changes in the fair value of derivative contracts in the consolidated statement of operations at each reporting date. | ||||||||||||
Derivative contracts are subject to master netting arrangements and are presented on a net basis in the consolidated balance sheets. This netting can cause derivative assets to be ultimately presented in a (liability) account on the consolidated balance sheets. Likewise, derivative (liabilities) could be presented in an asset account. | ||||||||||||
The following table summarizes the fair value and classification of our derivative instruments, none of which have been designated as hedging instruments under ASC 815: | ||||||||||||
Fair Values of Derivative Contracts | ||||||||||||
Net Fair | ||||||||||||
Gross | Gross amounts | Value of Assets | ||||||||||
31-Mar-15 | Fair Value | offset against assets | presented in | |||||||||
Balance sheet location | of Assets | in the Balance Sheet | the Balance Sheet | |||||||||
(in thousands) | ||||||||||||
(unaudited) | ||||||||||||
Derivative financial instruments, current assets | $ | 77,063 | $ | -30,512 | $ | 46,551 | ||||||
Derivative financial instruments, long-term assets | 56,814 | -23,245 | 33,569 | |||||||||
Total | $ | 133,877 | $ | -53,757 | $ | 80,120 | ||||||
Net Fair | ||||||||||||
Gross | Gross amounts | Value of Liabilities | ||||||||||
31-Mar-15 | Fair Value | offset against liabilities | presented in | |||||||||
Balance sheet location | of Liabilities | in the Balance Sheet | the Balance Sheet | |||||||||
(in thousands) | ||||||||||||
(unaudited) | ||||||||||||
Derivative financial instruments, current liabilities | $ | 30,512 | $ | -30,512 | $ | — | ||||||
Derivative financial instruments, long-term liabilities | 23,245 | -23,245 | — | |||||||||
Total | $ | 53,757 | $ | -53,757 | $ | — | ||||||
Net Fair | ||||||||||||
Gross | Gross amounts | Value of Assets | ||||||||||
31-Dec-14 | Fair Value | offset against assets | presented in | |||||||||
Balance sheet location | of Assets | in the Balance Sheet | the Balance Sheet | |||||||||
(in thousands) | ||||||||||||
Derivative financial instruments, current assets | $ | 91,341 | $ | -31,538 | $ | 59,803 | ||||||
Derivative financial instruments, long-term assets | 55,325 | -28,054 | 27,271 | |||||||||
Total | $ | 146,666 | $ | -59,592 | $ | 87,074 | ||||||
Net Fair | ||||||||||||
Gross | Gross amounts | Value of Liabilities | ||||||||||
31-Dec-14 | Fair Value | offset against liabilities | presented in | |||||||||
Balance sheet location | of Liabilities | in the Balance Sheet | the Balance Sheet | |||||||||
(in thousands) | ||||||||||||
Derivative financial instruments, current liabilities | $ | 31,538 | $ | -31,538 | $ | — | ||||||
Derivative financial instruments, long-term liabilities | 28,054 | -28,054 | — | |||||||||
Total | $ | 59,592 | $ | -59,592 | $ | — | ||||||
The following table summarizes the effect of our derivative instruments in the consolidated statements of operations: | ||||||||||||
Derivatives not | Three Months Ended | |||||||||||
designated as hedging | Location of | March 31, | ||||||||||
instruments under ASC 815 | Gain (Loss) | 2015 | 2014 | |||||||||
(in thousands) | ||||||||||||
(unaudited) | ||||||||||||
Oil commodity contracts | Gain (loss) — | |||||||||||
oil and natural gas | ||||||||||||
derivative contracts | $ | 20,741 | $ | -4,969 | ||||||||
Natural gas commodity contracts | Gain (loss) — | |||||||||||
oil and natural gas | ||||||||||||
derivative contracts | 6,018 | -5,730 | ||||||||||
Total gains (losses) from | ||||||||||||
derivatives not designated as hedges | $ | 26,759 | $ | -10,699 | ||||||||
Although our counterparties provide no collateral, the master derivative agreements with each counterparty effectively allow us, so long as we are not a defaulting party, after a default or the occurrence of a termination event, to set-off an unpaid hedging agreement receivable against the interest of the counterparty in any outstanding balance under the credit facility. | ||||||||||||
If a counterparty were to default in payment of an obligation under the master derivative agreements, we could be exposed to commodity price fluctuations, and the protection intended by the hedge could be lost. The value of our derivative financial instruments would be impacted. | ||||||||||||
We had the following open derivative contracts for crude oil at March 31, 2015 (unaudited): | ||||||||||||
OIL DERIVATIVE CONTRACTS | ||||||||||||
Volume | Weighted | Range | ||||||||||
Period and Type of Contract | in Bbls | Average | High | Low | ||||||||
2015 | ||||||||||||
Price Swap Contracts | 1,567,350 | $ | 69.99 | $ | 93.00 | $ | 50.80 | |||||
Collar Contracts | ||||||||||||
Short Call Options | 110,000 | 95.50 | 95.50 | 95.50 | ||||||||
Long Put Options | 980,850 | 81.22 | 90.00 | 65.00 | ||||||||
Short Put Options | 1,145,850 | 71.88 | 90.00 | 60.00 | ||||||||
2016 | ||||||||||||
Price Swap Contracts | 366,000 | 93.00 | 94.92 | 85.35 | ||||||||
Collar Contracts | ||||||||||||
Short Call Options | 1,042,700 | 102.18 | 130.00 | 75.00 | ||||||||
Long Put Options | 1,042,700 | 81.95 | 95.00 | 63.00 | ||||||||
Short Put Options | 1,225,700 | 68.67 | 75.00 | 60.00 | ||||||||
2017 | ||||||||||||
Collar Contracts | ||||||||||||
Short Call Options | 927,450 | 103.47 | 113.83 | 85.00 | ||||||||
Long Put Options | 744,950 | 83.26 | 90.00 | 80.00 | ||||||||
Short Put Options | 744,950 | 63.26 | 70.00 | 60.00 | ||||||||
2018 | ||||||||||||
Collar Contracts | ||||||||||||
Short Call Options | 307,400 | 104.39 | 104.65 | 104.15 | ||||||||
Long Put Options | 307,400 | 80.00 | 80.00 | 80.00 | ||||||||
Short Put Options | 307,400 | 60.00 | 60.00 | 60.00 | ||||||||
We had the following open derivative contracts for natural gas at March 31, 2015 (unaudited): | ||||||||||||
NATURAL GAS DERIVATIVE CONTRACTS | ||||||||||||
Volume in | Weighted | Range | ||||||||||
Period and Type of Contract | MMBtu | Average | High | Low | ||||||||
2015 | ||||||||||||
Price Swap Contracts | 2,887,500 | $ | 5.07 | $ | 5.91 | $ | 4.31 | |||||
Collar Contracts | ||||||||||||
Short Call Options | 5,500,000 | 4.52 | 4.52 | 4.51 | ||||||||
Long Put Options | 6,088,500 | 3.95 | 4.00 | 3.50 | ||||||||
Short Put Options | 6,393,500 | 3.12 | 3.50 | 2.75 | ||||||||
2016 | ||||||||||||
Price Swap Contracts | 8,418,000 | 4.22 | 4.23 | 4.22 | ||||||||
Collar Contracts | ||||||||||||
Short Call Options | 455,000 | 7.50 | 7.50 | 7.50 | ||||||||
Long Put Options | 455,000 | 5.50 | 5.50 | 5.50 | ||||||||
Short Put Options | 5,341,100 | 3.01 | 4.00 | 2.72 | ||||||||
2017 | ||||||||||||
Collar Contracts | ||||||||||||
Short Call Options | 6,570,000 | 5.00 | 5.00 | 4.98 | ||||||||
Long Put Options | 6,570,000 | 4.50 | 4.50 | 4.50 | ||||||||
Short Put Options | 6,570,000 | 4.00 | 4.00 | 4.00 | ||||||||
2018 | ||||||||||||
Collar Contracts | ||||||||||||
Short Call Options | 5,475,000 | 5.50 | 5.53 | 5.48 | ||||||||
Long Put Options | 5,475,000 | 4.50 | 4.50 | 4.50 | ||||||||
Short Put Options | 5,475,000 | 4.00 | 4.00 | 4.00 | ||||||||
In those instances where contracts are identical as to time period, volume and strike price, and counterparty, but opposite as to direction (long and short), the volumes and average prices have been netted in the two tables above. Prices stated in the table above for oil may settle against either the NYMEX or Brent ICE indices or may reflect a mix of positions settling on these two indices. | ||||||||||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Asset Retirement Obligations [Abstract] | ||||
Asset Retirement Obligations | 7. ASSET RETIREMENT OBLIGATIONS | |||
A summary of the changes in our asset retirement obligations is included in the table below: | ||||
Three Months Ended | ||||
(in thousands) | 31-Mar-15 | |||
(unaudited) | ||||
Balance, beginning of year | $ | 62,872 | ||
Liabilities incurred | 363 | |||
Liabilities settled | -491 | |||
Liabilities transferred in sales of properties | -8 | |||
Revisions to estimates | -192 | |||
Accretion expense | 544 | |||
Balance, March 31, 2015 | 63,088 | |||
Less: Current portion | 909 | |||
Long term portion | $ | 62,179 | ||
LongTerm_Debt_And_Notes_Payabl
Long-Term Debt And Notes Payable To Founder | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Long-Term Debt And Notes Payable To Founder [Abstract] | ||||||
Long-Term Debt And Notes Payable To Founder | 8. LONG-TERM DEBT AND NOTES PAYABLE TO FOUNDER | |||||
Long-term debt and notes payable to founder consists of the following: | ||||||
March 31, | December 31, | |||||
2015 | 2014 | |||||
(in thousands) | ||||||
(unaudited) | ||||||
Credit Facility | $ | 310,520 | $ | 319,520 | ||
Senior Notes , net of discount | 448,215 | 448,088 | ||||
Total long-term debt | $ | 758,735 | $ | 767,608 | ||
Notes payable to founder | $ | 24,838 | $ | 24,540 | ||
Credit Facility. On May 13, 2010, we entered into a Sixth Amended and Restated Credit Agreement (as amended, the “credit facility”). The credit facility matures on May 23, 2016 and is secured by substantially all of our oil and gas properties. The credit facility is based on our proved reserves and the value attributed to those reserves. The credit facility borrowing base is redetermined periodically semi-annually in May and November and, as of March 31, 2015, the borrowing base under the facility was $375 million. The credit facility bears interest at LIBOR plus applicable margins between 2.00% and 2.75% or a “Reference Rate,” which is based on the prime rate of Wells Fargo Bank, N. A., plus a margin ranging from 1.00% to 1.75%, depending on the utilization of our borrowing base. The weighted average rate on outstanding borrowings was 2.82% as of March 31, 2015 and 2.89% as of December 31, 2014. The letters of credit outstanding as of March 31, 2015 were $0.9 million. | ||||||
The credit facility contains customary covenants including, among others, defined financial covenants, including minimum working capital levels (the ratio of current assets plus the unused borrowing base, to current liabilities, excluding assets and liabilities related to derivative contracts) of 1.0 to 1.0, minimum coverage of interest expenses of 3.0 to 1.0, and maximum leverage of 4.00 to 1.00. The interest coverage and leverage ratios refer to the ratio of earnings before interest, taxes, depreciation, depletion, amortization, and exploration expense (“EBITDAX”, as defined more specifically in the credit agreement) to interest expense and to total debt (as defined), respectively. Financial ratios are calculated quarterly using EBITDAX for the most recent twelve months. As of March 31, 2015, we were in compliance with all covenants. | ||||||
Senior Notes. We have $450 million in outstanding registered senior notes due October 15, 2018 that carry a stated interest rate of 9.625% and an effective rate of 9.7825%. Interest is payable semi-annually each April 15th and October 15th. The senior notes are unsecured and are general obligations of the Company, and effectively rank junior to any of our existing or future secured indebtedness, which includes the credit facility. The senior notes are unconditionally guaranteed on a senior unsecured basis by each of our material subsidiaries. The balance is presented net of unamortized discount of $1.8 million and $1.9 million at March 31, 2015 and December 31, 2014, respectively. | ||||||
The senior notes contain an optional redemption provision that began on October 15, 2014 allowing us to retire the principal outstanding, in whole or in part, at 104.813%. Additional optional redemption provisions allow for retirement at 102.406% and 100.0% beginning on each of October 15, 2015 and 2016, respectively. | ||||||
Notes Payable to Founder. We have notes payable to our founder that bear simple interest at 10% with a balance of $24.8 million and $24.5 million at March 31, 2015 and December 31, 2014, respectively. The maturity date was extended on March 25, 2014 from December 31, 2018 to December 31, 2021. Interest and principal are payable at maturity. The notes are convertible into shares of our Class B partner, High Mesa, Inc., common stock upon certain conditions in the event of an initial public offering. | ||||||
These founder notes are unsecured and subordinate to all debt. In connection with the March 25, 2014 recapitalization of our Class B partner described in Note 12, the founder notes were amended and restated to subordinate them to the paid in kind (“PIK”) notes of our Class B partner. The founder notes were also subordinated to the rights of the holders of Class B units to receive distributions under our amended partnership agreement and subordinated to the rights of the holders of Series B Preferred Stock to receive payments. | ||||||
Interest on the notes payable to our founder amounted to $0.3 million for each of the three months ended March 31, 2015 and 2014. Such amounts have been added to the balance of the founder notes. | ||||||
During the three months ended March 31, 2015 and 2014, the Company amortized $0.7 million of deferred financing costs to interest expense using the straight-line method, which approximates the effective interest method, over the term of the related debt. | ||||||
Accounts_Payable_And_Accrued_L
Accounts Payable And Accrued Liabilities | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Accounts Payable And Accrued Liabilities [Abstract] | ||||||
Accounts Payable And Accrued Liabilities | 9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |||||
The following provides the detail of accounts payable and accrued liabilities: | ||||||
March 31, | December 31, | |||||
2015 | 2014 | |||||
(in thousands) | ||||||
(unaudited) | ||||||
Capital expenditures | $ | 13,529 | $ | 32,990 | ||
Revenues and royalties payable | 5,924 | 7,302 | ||||
Operating expenses/taxes | 24,887 | 20,716 | ||||
Interest | 20,306 | 9,136 | ||||
Compensation | 10,144 | 10,586 | ||||
Other | 8,409 | 2,605 | ||||
Total accrued liabilities | 83,199 | 83,335 | ||||
Accounts payable | 23,727 | 34,225 | ||||
Accounts payable and accrued liabilities | $ | 106,926 | $ | 117,560 | ||
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 10. COMMITMENTS AND CONTINGENCIES |
Contingencies | |
Environmental claims: Various landowners have sued the Company and/or our wholly owned subsidiaries, in lawsuits concerning several fields in which we have or historically had operations in Louisiana. The lawsuits seek injunctive relief and other relief, including unspecified amounts in both actual and punitive damages for alleged breaches of mineral leases and alleged failure to restore the plaintiffs’ lands from alleged contamination and otherwise from our oil and natural gas operations. We are unable to express an opinion with respect to the likelihood of an unfavorable outcome of the various environmental claims or to estimate the amount or range of potential loss should the outcome be unfavorable. Therefore, we have not provided any material amounts for these claims in our consolidated financial statements at March 31, 2015. | |
Due to the nature of our business, some contamination of the real estate property owned or leased by us is possible. Environmental site assessments of the property would be necessary to adequately determine remediation costs, if any. Management has established a liability for soil contamination in Florida of $1.2 million and $1.1 million at March 31, 2015 and December 31, 2014, respectively, based on our undiscounted engineering estimates. The obligations are included in other long-term liabilities in the accompanying consolidated balance sheets. | |
Title/lease disputes: Title and lease disputes may arise in the normal course of our operations. These disputes are usually small but could result in an increase or decrease in reserves and/or other forms of settlement, such as cash, once a final resolution to the title dispute is made. | |
Performance appreciation rights: In the third quarter of 2014 we adopted the Alta Mesa Holdings, LP Amended and Restated Performance Appreciation Rights Plan (the “Plan”), effective September 24, 2014. The Plan is intended to provide incentive compensation to key employees and consultants who make significant contributions to the Company. Under the Plan, participants are granted Performance Appreciation Rights (“PARs”) with a stipulated initial value. The PARs vest over time (as specified in each grant, typically five years) and entitle the owner to receive a cash amount equal to the increase, if any, between the initial stipulated value and the designated value of the PAR on the payment valuation date. The payment valuation date is the earlier of a liquidity event (as defined in the Plan, but generally intended to be either a recapitalization or an initial public offering of Company equity) or as selected by the participant, but no earlier than five years from the end of the year of the grant. Both the initial designated value and the designated payment value of the PAR are determined by the Plan’s administrative committee, composed of members of our board of directors. In the case of a liquidity event, the designated value of all PARs is to be based on the net sale proceeds (as defined in the Plan) from the liquidity event. After any payment valuation date, regardless of payment or none, vested PARs expire. During the first quarter of 2015 no new PARs were granted and 27,500 PARs were terminated, resulting in 244,000 PARs. We are unable to express an opinion with respect to the likelihood of a qualifying liquidity event which would result in any payment under the Plan or to estimate any amount which may become payable under the Plan. We consider the possibility of payment at a fixed determination date absent a positive liquidity event to be remote. Therefore, we have not provided any amount for this contingent liability in our consolidated financial statements at March 31, 2015 or December 31, 2014. | |
Litigation: On April 13, 2005, Henry Sarpy and several other plaintiffs filed a petition against Exxon, Extex, The Meridian Resource Company (“TMRC” our wholly-owned subsidiary), and the State of Louisiana for contamination of their land in the New Sarpy and/or Good Hope Field in St. Charles Parish. Petitioners claim they are owners of land upon which oil field waste pits containing dangerous and contaminating substances are located. Plaintiffs alleged that they discovered in May 2004 that their property is contaminated with oil field wastes greater than represented by Exxon. The property was originally owned by Exxon and was sold to TMRC. TMRC subsequently sold the property to Extex. We have been defending this ongoing case and investigating the scope of the Plaintiffs’ alleged damage. On April 14, 2015, TMRC entered into a Memorandum of Understanding with Exxon to settle the claims in this ongoing matter. As of March 31, 2015, we have accrued approximately $5.0 million as the outcome of the litigation was deemed probable and estimable. | |
Other contingencies: We are subject to legal proceedings, claims and liabilities arising in the ordinary course of business for which the outcome cannot be reasonably estimated; however, in the opinion of management, such litigation and claims will be resolved without material adverse effect on our financial position, results of operations or cash flows. Accruals for losses associated with litigation are made when losses are deemed probable and can be reasonably estimated. | |
Significant_Risks_And_Uncertai
Significant Risks And Uncertainties | 3 Months Ended |
Mar. 31, 2015 | |
Significant Risks And Uncertainties [Abstract] | |
Significant Risks And Uncertainties | 11. SIGNIFICANT RISKS AND UNCERTAINTIES |
Our business makes us vulnerable to changes in wellhead prices of crude oil and natural gas. Historically, world-wide oil and natural gas prices and markets have been volatile, and may continue to be volatile in the future. In particular, the prices of oil and natural gas were highly volatile in 2014 and declined dramatically in the second half of 2014 and remain depressed as of March 31, 2015. Continued depressed oil and natural gas prices, further price declines or any other unfavorable market conditions could have a material adverse effect on our financial condition and on the carrying value of our proved reserves. Sustained low oil or natural gas prices may require us to further write down the value of our oil and natural gas properties and/or revise our development plans, which may cause certain of our undeveloped well locations to no longer be deemed proved. As a result of the depressed commodity prices and in order to preserve our liquidity, we have reduced our budgeted capital expenditures for 2015. Low prices may also reduce our cash available for distribution, acquisitions and for servicing our indebtedness. We mitigate some of this vulnerability by entering into oil and natural gas price derivative contracts. See Note 6. | |
Partners_Capital_Deficit
Partners' Capital (Deficit) | 3 Months Ended |
Mar. 31, 2015 | |
Partners' Capital (Deficit) [Abstract] | |
Partners' Capital (Deficit) | 12. PARTNERS’ (DEFICIT) |
Management and Control: Our business and affairs are managed by Alta Mesa Holdings GP, LLC, our general partner (“General Partner”). With certain exceptions, the General Partner may not be removed except for the reasons of “cause,” which are defined in the Partnership Agreement. Our partnership agreement provides for two classes of limited partners. Class A partners include our founder and other parties. Our Class B partner is High Mesa, Inc. (“High Mesa”). The Class B limited partner has certain approval rights, generally over capital plans and significant transactions in the areas of finance, acquisition, and divestiture. | |
Ownership of High Mesa is distributed among two classes of equity. Highbridge owns all of the convertible PIK preferred stock of High Mesa. The common stock of High Mesa is owned by our Class A partners. Highbridge also holds senior PIK notes issued by High Mesa. | |
Distribution and Income Allocation: In connection with the recapitalization on March 25, 2014, our partnership agreement was amended and restated to provide, among other things, that all distributions under the partnership agreement shall first be made to holders of Class B Units, until all principal and interest has been extinguished under the senior PIK notes issued by High Mesa to Highbridge. After such extinguishment of the senior PIK notes, distributions shall then be made to holders of Class A and Class B Units pursuant to the distribution formulas set forth in the amended partnership agreement | |
The Class B Partner may require the General Partner to make distributions; however, any distribution must be permitted under the terms of our credit facility and our senior notes. | |
Distribution of net cash flow from a Liquidity Event is distributed to the Class A and Class B Partners according to a variable formula as defined in the Partnership Agreement. A “Liquidity Event” is any event in which we receive cash proceeds outside the ordinary course of our business. The Class B Partner can, without consent of any other partners, request that the General Partner take action to cause us, or our assets, to be sold to one or more third parties. | |
Subsidiary_Guarantors
Subsidiary Guarantors | 3 Months Ended |
Mar. 31, 2015 | |
Subsidiary Guarantors [Abstract] | |
Subsidiary Guarantors | |
13. SUBSIDIARY GUARANTORS | |
All of our material wholly-owned subsidiaries are guarantors under the terms of both our senior notes and our credit facility. Our consolidated financial statements reflect the combined financial position of these subsidiary guarantors. Our parent company, Alta Mesa Holdings, LP, has no independent operations, assets, or liabilities. The guarantees are full and unconditional (except for customary release provisions) and joint and several. Those subsidiaries which are not wholly owned and are not guarantors are minor. There are no restrictions on dividends, distributions, loans, or other transfers of funds from the subsidiary guarantors to our parent company. | |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Principles Of Consolidation And Reporting | Principles of Consolidation and Reporting |
The consolidated financial statements reflect our accounts after elimination of all significant intercompany transactions and balances. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual consolidated financial statements for the year ended December 31, 2014, which were filed with the Securities and Exchange Commission in our 2014 Annual Report. | |
The consolidated financial statements included herein as of March 31, 2015, and for the three month periods ended March 31, 2015 and 2014, are unaudited, and in the opinion of management, the information furnished reflects all material adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of consolidated financial position and of the results of operations for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Certain minor reclassifications of prior period consolidated financial statements have been made to conform to current reporting practices. The reclassifications had no impact on net income (loss) or partners’ (deficit). The consolidated results of operations for interim periods are not necessarily indicative of results to be expected for a full year. | |
Use Of Estimates | Use of Estimates |
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. | |
Reserve estimates significantly impact depreciation, depletion and amortization expense and potential impairments of oil and natural gas properties and are subject to change based on changes in oil and natural gas prices and trends and changes in estimated reserve quantities. We analyze estimates, including those related to oil and natural gas reserves, oil and natural gas revenues, the value of oil and natural gas properties, bad debts, asset retirement obligations, derivative contracts, income taxes and contingencies and litigation. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In March 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The guidance is effective for interim periods and annual periods beginning after December 15, 2015; however early adoption is permitted. The Company does not believe the adoption of this guidance will have a material impact on its financial position, results of operations or cash flows. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The update provides guidance concerning the recognition and measurement of revenue from contracts with customers. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016. The standard is required to be adopted using either the full retrospective approach, with all prior periods presented adjusted, or the modified retrospective approach, with a cumulative adjustment to retained earnings on the opening balance sheet. In April 2015, the FASB proposed to delay the effective date one year, beginning in fiscal year 2018. The proposal will be subject to the FASB’s due process requirement, which includes a period for public comments. We are currently evaluating the impact of adopting this standard on our consolidated financial statements, and whether to use the full retrospective approach or the modified retrospective approach. | |
Fair_Value_Disclosures_Policy
Fair Value Disclosures (Policy) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements And Disclosures | We follow the guidance of ASC 820, “Fair Value Measurements and Disclosures,” in the estimation of fair values. ASC 820 provides a hierarchy of fair value measurements, based on the inputs to the fair value estimation process. It requires disclosure of fair values classified according to defined “levels,” which are based on the reliability of the evidence used to determine fair value, with Level 1 being the most reliable and Level 3 the least reliable. Level 1 evidence consists of observable inputs, such as quoted prices in an active market. Level 2 inputs typically correlate the fair value of the asset or liability to a similar, but not identical item which is actively traded. Level 3 inputs include at least some unobservable inputs, such as valuation models developed using the best information available in the circumstances. |
The fair value of cash, accounts receivable, other current assets, and current liabilities approximate book value due to their short-term nature. The estimate of fair value of long-term debt under our senior secured revolving credit facility is not considered to be materially different from carrying value due to market rates of interest. The fair value of the notes payable to our founder is not practicable to determine. | |
Our senior notes are carried at historical cost, net of amortized discount; we estimate the fair value of the senior notes for disclosure purposes. We have estimated the fair value of our $450 million senior notes payable to be $344.3 million at March 31, 2015. This estimation is based on the most recent trading values of the notes at or near the reporting dates, which is a Level 1 determination. See Note 8 for information on long-term debt. | |
We utilize the modified Black-Scholes and the Turnbull Wakeman option pricing models to estimate the fair values of oil and natural gas derivative contracts. Inputs to these models include observable inputs from the New York Mercantile Exchange (“NYMEX”) for futures contracts, and inputs derived from NYMEX observable inputs, such as implied volatility of oil and natural gas prices. We have classified the fair values of all our oil and natural gas derivative contracts as Level 2. | |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Policy) | 3 Months Ended |
Mar. 31, 2015 | |
Derivative Financial Instruments [Line Items] | |
Derivatives And Hedging | We have not designated any of our derivative contracts as fair value or cash flow hedges; accordingly, we use mark-to-market accounting, recognizing changes in the fair value of derivative contracts in the consolidated statement of operations at each reporting date. |
Derivative contracts are subject to master netting arrangements and are presented on a net basis in the consolidated balance sheets. This netting can cause derivative assets to be ultimately presented in a (liability) account on the consolidated balance sheets. Likewise, derivative (liabilities) could be presented in an asset account. | |
Energy Related Derivative [Member] | |
Derivative Financial Instruments [Line Items] | |
Derivatives, Use of Derivatives | We account for our derivative contracts under the provisions of ASC 815, "Derivatives and Hedging." We have entered into forward-swap contracts and collar contracts to reduce our exposure to price risk in the spot market for sales of oil and natural gas. We also have utilized financial basis swap contracts, which address the price differential between market-wide benchmark prices and other benchmark pricing referenced in certain of our crude oil and natural gas sales contracts. Substantially all of our hedging agreements are executed by affiliates of our lenders under the credit facility described in Note 8 below, and are collateralized by the security interests of the respective affiliated lenders in certain of our assets under the credit facility. The contracts settle monthly and are scheduled to coincide with either oil production equivalent to barrels (Bbl) per month or gas production equivalent to volumes in millions of British thermal units (MMbtu) per month. The contracts represent agreements between us and the counter-parties to exchange cash based on a designated price, or in the case of financial basis hedging contracts, based on a designated price differential between various benchmark prices. Cash settlement occurs monthly. No derivative contracts have been entered into for trading or speculative purposes. |
Property_And_Equipment_Tables
Property And Equipment (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Property And Equipment [Abstract] | ||||||
Property And Equipment | ||||||
March 31, | December 31, | |||||
2015 | 2014 | |||||
(in thousands) | ||||||
(unaudited) | ||||||
OIL AND NATURAL GAS PROPERTIES | ||||||
Unproved properties | $ | 79,685 | $ | 84,620 | ||
Accumulated impairment | -3,351 | -3,749 | ||||
Unproved properties, net | 76,334 | 80,871 | ||||
Proved oil and natural gas properties | 1,468,331 | 1,417,785 | ||||
Accumulated depreciation, depletion, amortization and impairment | -923,230 | -812,480 | ||||
Proved oil and natural gas properties, net | 545,101 | 605,305 | ||||
TOTAL OIL AND NATURAL GAS PROPERTIES, net | 621,435 | 686,176 | ||||
LAND | 2,820 | 2,820 | ||||
OTHER PROPERTY AND EQUIPMENT | ||||||
Office furniture and equipment, vehicles | 17,881 | 17,302 | ||||
Accumulated depreciation | -9,336 | -8,617 | ||||
OTHER PROPERTY AND EQUIPMENT, net | 8,545 | 8,685 | ||||
TOTAL PROPERTY AND EQUIPMENT, net | $ | 632,800 | $ | 697,681 | ||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Measurement Of Fair Value Of Assets And Liabilities On Recurring Basis | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
(in thousands) | ||||||||||||
At March 31, 2015 (unaudited): | ||||||||||||
Financial Assets: | ||||||||||||
Derivative contracts for oil and natural gas | — | $ | 128,748 | — | $ | 128,748 | ||||||
Financial Liabilities: | ||||||||||||
Derivative contracts for oil and natural gas | — | $ | 48,628 | — | $ | 48,628 | ||||||
At December 31, 2014: | ||||||||||||
Financial Assets: | ||||||||||||
Derivative contracts for oil and natural gas | — | $ | 140,652 | — | $ | 140,652 | ||||||
Financial Liabilities: | ||||||||||||
Derivative contracts for oil and natural gas | — | $ | 53,578 | — | $ | 53,578 | ||||||
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Derivative [Line Items] | ||||||||||||
Fair Values Of Derivative Contracts | Fair Values of Derivative Contracts | |||||||||||
Net Fair | ||||||||||||
Gross | Gross amounts | Value of Assets | ||||||||||
31-Mar-15 | Fair Value | offset against assets | presented in | |||||||||
Balance sheet location | of Assets | in the Balance Sheet | the Balance Sheet | |||||||||
(in thousands) | ||||||||||||
(unaudited) | ||||||||||||
Derivative financial instruments, current assets | $ | 77,063 | $ | -30,512 | $ | 46,551 | ||||||
Derivative financial instruments, long-term assets | 56,814 | -23,245 | 33,569 | |||||||||
Total | $ | 133,877 | $ | -53,757 | $ | 80,120 | ||||||
Net Fair | ||||||||||||
Gross | Gross amounts | Value of Liabilities | ||||||||||
31-Mar-15 | Fair Value | offset against liabilities | presented in | |||||||||
Balance sheet location | of Liabilities | in the Balance Sheet | the Balance Sheet | |||||||||
(in thousands) | ||||||||||||
(unaudited) | ||||||||||||
Derivative financial instruments, current liabilities | $ | 30,512 | $ | -30,512 | $ | — | ||||||
Derivative financial instruments, long-term liabilities | 23,245 | -23,245 | — | |||||||||
Total | $ | 53,757 | $ | -53,757 | $ | — | ||||||
Net Fair | ||||||||||||
Gross | Gross amounts | Value of Assets | ||||||||||
31-Dec-14 | Fair Value | offset against assets | presented in | |||||||||
Balance sheet location | of Assets | in the Balance Sheet | the Balance Sheet | |||||||||
(in thousands) | ||||||||||||
Derivative financial instruments, current assets | $ | 91,341 | $ | -31,538 | $ | 59,803 | ||||||
Derivative financial instruments, long-term assets | 55,325 | -28,054 | 27,271 | |||||||||
Total | $ | 146,666 | $ | -59,592 | $ | 87,074 | ||||||
Net Fair | ||||||||||||
Gross | Gross amounts | Value of Liabilities | ||||||||||
31-Dec-14 | Fair Value | offset against liabilities | presented in | |||||||||
Balance sheet location | of Liabilities | in the Balance Sheet | the Balance Sheet | |||||||||
(in thousands) | ||||||||||||
Derivative financial instruments, current liabilities | $ | 31,538 | $ | -31,538 | $ | — | ||||||
Derivative financial instruments, long-term liabilities | 28,054 | -28,054 | — | |||||||||
Total | $ | 59,592 | $ | -59,592 | $ | — | ||||||
Effect Of Derivative Instruments In The Consolidated Statements Of Operations | ||||||||||||
Derivatives not | Three Months Ended | |||||||||||
designated as hedging | Location of | March 31, | ||||||||||
instruments under ASC 815 | Gain (Loss) | 2015 | 2014 | |||||||||
(in thousands) | ||||||||||||
(unaudited) | ||||||||||||
Oil commodity contracts | Gain (loss) — | |||||||||||
oil and natural gas | ||||||||||||
derivative contracts | $ | 20,741 | $ | -4,969 | ||||||||
Natural gas commodity contracts | Gain (loss) — | |||||||||||
oil and natural gas | ||||||||||||
derivative contracts | 6,018 | -5,730 | ||||||||||
Total gains (losses) from | ||||||||||||
derivatives not designated as hedges | $ | 26,759 | $ | -10,699 | ||||||||
Oil [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Open Derivative Contracts | ||||||||||||
Volume | Weighted | Range | ||||||||||
Period and Type of Contract | in Bbls | Average | High | Low | ||||||||
2015 | ||||||||||||
Price Swap Contracts | 1,567,350 | $ | 69.99 | $ | 93.00 | $ | 50.80 | |||||
Collar Contracts | ||||||||||||
Short Call Options | 110,000 | 95.50 | 95.50 | 95.50 | ||||||||
Long Put Options | 980,850 | 81.22 | 90.00 | 65.00 | ||||||||
Short Put Options | 1,145,850 | 71.88 | 90.00 | 60.00 | ||||||||
2016 | ||||||||||||
Price Swap Contracts | 366,000 | 93.00 | 94.92 | 85.35 | ||||||||
Collar Contracts | ||||||||||||
Short Call Options | 1,042,700 | 102.18 | 130.00 | 75.00 | ||||||||
Long Put Options | 1,042,700 | 81.95 | 95.00 | 63.00 | ||||||||
Short Put Options | 1,225,700 | 68.67 | 75.00 | 60.00 | ||||||||
2017 | ||||||||||||
Collar Contracts | ||||||||||||
Short Call Options | 927,450 | 103.47 | 113.83 | 85.00 | ||||||||
Long Put Options | 744,950 | 83.26 | 90.00 | 80.00 | ||||||||
Short Put Options | 744,950 | 63.26 | 70.00 | 60.00 | ||||||||
2018 | ||||||||||||
Collar Contracts | ||||||||||||
Short Call Options | 307,400 | 104.39 | 104.65 | 104.15 | ||||||||
Long Put Options | 307,400 | 80.00 | 80.00 | 80.00 | ||||||||
Short Put Options | 307,400 | 60.00 | 60.00 | 60.00 | ||||||||
Natural Gas [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Open Derivative Contracts | ||||||||||||
Volume in | Weighted | Range | ||||||||||
Period and Type of Contract | MMBtu | Average | High | Low | ||||||||
2015 | ||||||||||||
Price Swap Contracts | 2,887,500 | $ | 5.07 | $ | 5.91 | $ | 4.31 | |||||
Collar Contracts | ||||||||||||
Short Call Options | 5,500,000 | 4.52 | 4.52 | 4.51 | ||||||||
Long Put Options | 6,088,500 | 3.95 | 4.00 | 3.50 | ||||||||
Short Put Options | 6,393,500 | 3.12 | 3.50 | 2.75 | ||||||||
2016 | ||||||||||||
Price Swap Contracts | 8,418,000 | 4.22 | 4.23 | 4.22 | ||||||||
Collar Contracts | ||||||||||||
Short Call Options | 455,000 | 7.50 | 7.50 | 7.50 | ||||||||
Long Put Options | 455,000 | 5.50 | 5.50 | 5.50 | ||||||||
Short Put Options | 5,341,100 | 3.01 | 4.00 | 2.72 | ||||||||
2017 | ||||||||||||
Collar Contracts | ||||||||||||
Short Call Options | 6,570,000 | 5.00 | 5.00 | 4.98 | ||||||||
Long Put Options | 6,570,000 | 4.50 | 4.50 | 4.50 | ||||||||
Short Put Options | 6,570,000 | 4.00 | 4.00 | 4.00 | ||||||||
2018 | ||||||||||||
Collar Contracts | ||||||||||||
Short Call Options | 5,475,000 | 5.50 | 5.53 | 5.48 | ||||||||
Long Put Options | 5,475,000 | 4.50 | 4.50 | 4.50 | ||||||||
Short Put Options | 5,475,000 | 4.00 | 4.00 | 4.00 | ||||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Asset Retirement Obligations [Abstract] | ||||
Summary Of Changes In Asset Retirement Obligations | ||||
Three Months Ended | ||||
(in thousands) | 31-Mar-15 | |||
(unaudited) | ||||
Balance, beginning of year | $ | 62,872 | ||
Liabilities incurred | 363 | |||
Liabilities settled | -491 | |||
Liabilities transferred in sales of properties | -8 | |||
Revisions to estimates | -192 | |||
Accretion expense | 544 | |||
Balance, March 31, 2015 | 63,088 | |||
Less: Current portion | 909 | |||
Long term portion | $ | 62,179 | ||
LongTerm_Debt_And_Notes_Payabl1
Long-Term Debt And Notes Payable To Founder (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Long-Term Debt And Notes Payable To Founder [Abstract] | ||||||
Long-Term Debt And Notes Payable To Founder | ||||||
March 31, | December 31, | |||||
2015 | 2014 | |||||
(in thousands) | ||||||
(unaudited) | ||||||
Credit Facility | $ | 310,520 | $ | 319,520 | ||
Senior Notes , net of discount | 448,215 | 448,088 | ||||
Total long-term debt | $ | 758,735 | $ | 767,608 | ||
Notes payable to founder | $ | 24,838 | $ | 24,540 | ||
Accounts_Payable_And_Accrued_L1
Accounts Payable And Accrued Liabilities (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Accounts Payable And Accrued Liabilities [Abstract] | ||||||
Detail Of Accounts Payable And Accrued Liabilities | ||||||
March 31, | December 31, | |||||
2015 | 2014 | |||||
(in thousands) | ||||||
(unaudited) | ||||||
Capital expenditures | $ | 13,529 | $ | 32,990 | ||
Revenues and royalties payable | 5,924 | 7,302 | ||||
Operating expenses/taxes | 24,887 | 20,716 | ||||
Interest | 20,306 | 9,136 | ||||
Compensation | 10,144 | 10,586 | ||||
Other | 8,409 | 2,605 | ||||
Total accrued liabilities | 83,199 | 83,335 | ||||
Accounts payable | 23,727 | 34,225 | ||||
Accounts payable and accrued liabilities | $ | 106,926 | $ | 117,560 | ||
Significant_Divestitures_Detai
Significant Divestitures (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Percentage of reserves proved undeveloped | 67.00% | ||
Barrels of Oil Equivalent [Member] | |||
Business Acquisition [Line Items] | |||
Estimated proved reserves | 7,700,000 | ||
Eagleville Divestiture [Member] | |||
Business Acquisition [Line Items] | |||
Date of acquisition or sale of properties | 25-Mar-14 | ||
Percentage of original working interest net profits interest in wells is retained on, 2014 | 50.00% | ||
Percentage of original working interest net profits interest in wells is retained on, 2015 | 30.00% | ||
Percentage of original working interest net profits interest in wells is retained on, 2016 | 15.00% | ||
Percentage of original working interest net profits interest in wells is retained on, 2017 | 0.00% | ||
Percentage of undivided interest in mineral leases and interests included in sale | 30.00% | ||
Percentage of working interest in all wells in progress on December 31, 2013 or drilled after January 1, 2014 included in sale | 30.00% | ||
Cash purchase price, net of costs of transaction | $171,000,000 | ||
Gain on sale of oil and gas properties | 72,500,000 | ||
Operating income from sold oil and gas properties | $6,600,000 | ||
Eagleville Divestiture [Member] | Barrels of Oil Equivalent [Member] | |||
Business Acquisition [Line Items] | |||
Estimated proved reserves | 7,500,000 |
Property_And_Equipment_Details
Property And Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property And Equipment [Abstract] | ||
Unproved properties | $79,685 | $84,620 |
Accumulated impairment | -3,351 | -3,749 |
Unproved properties, net | 76,334 | 80,871 |
Proved oil and natural gas properties | 1,468,331 | 1,417,785 |
Accumulated depreciation, depletion, amortization and impairment | -923,230 | -812,480 |
Proved oil and natural gas properties, net | 545,101 | 605,305 |
TOTAL OIL AND NATURAL GAS PROPERTIES, net | 621,435 | 686,176 |
LAND | 2,820 | 2,820 |
Office furniture and equipment, vehicles | 17,881 | 17,302 |
Accumulated depreciation | -9,336 | -8,617 |
OTHER PROPERTY AND EQUIPMENT, net | 8,545 | 8,685 |
Total property and equipment, net | $632,800 | $697,681 |
Fair_Value_Disclosures_Narrati
Fair Value Disclosures (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Fair Value Disclosures [Abstract] | ||
Face value of senior notes issued | $450,000,000 | |
Fair value of senior notes payable | 344,300,000 | |
Carrying value of oil and gas properties | 272,000,000 | 1,200,000 |
Written down fair value of oil and gas properties | 198,900,000 | 300,000 |
Impairment charges to oil and gas properties | 73,050,000 | 902,000 |
Asset retirement obligation measured at fair value | $400,000 | $200,000 |
Fair_Value_Disclosures_Measure
Fair Value Disclosures (Measurement Of Fair Value Of Assets And Liabilities On Recurring Basis) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ||
Derivative contracts for oil and natural gas, gross | $128,748 | $140,652 |
Financial Liabilities: | ||
Derivative contracts for oil and natural gas, gross | 48,628 | 53,578 |
Level 1 [Member] | ||
Financial Assets: | ||
Derivative contracts for oil and natural gas, gross | ||
Financial Liabilities: | ||
Derivative contracts for oil and natural gas, gross | ||
Level 2 [Member] | ||
Financial Assets: | ||
Derivative contracts for oil and natural gas, gross | 128,748 | 140,652 |
Financial Liabilities: | ||
Derivative contracts for oil and natural gas, gross | 48,628 | 53,578 |
Level 3 [Member] | ||
Financial Assets: | ||
Derivative contracts for oil and natural gas, gross | ||
Financial Liabilities: | ||
Derivative contracts for oil and natural gas, gross |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Fair Values Of Derivative Contracts) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, Gross Fair Value of Assets | $133,877 | $146,666 |
Derivative assets, Gross, offset against assets for presentation in the Balance Sheet | -53,757 | -59,592 |
Derivative Assets, Current | 46,551 | 59,803 |
Derivative Assets, Noncurrent | 33,569 | 27,271 |
Derivative assets, net, total | 80,120 | 87,074 |
Derivative liabilities, Gross Fair Value of Liabilities | 53,757 | 59,592 |
Derivative liabilities, Gross, offset against liabilities for presentation in the Balance Sheet | -53,757 | -59,592 |
Derivative Liabilities, Current | ||
Derivative Liabilities, Noncurrent | ||
Derivative liabilities, net, total | ||
Derivative Assets Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, Gross Fair Value of Assets | 77,063 | 91,341 |
Derivative assets, Gross, offset against assets for presentation in the Balance Sheet | -30,512 | -31,538 |
Derivative Asset Non-Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, Gross Fair Value of Assets | 56,814 | 55,325 |
Derivative assets, Gross, offset against assets for presentation in the Balance Sheet | -23,245 | -28,054 |
Derivative Liabilities Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, Gross Fair Value of Liabilities | 30,512 | 31,538 |
Derivative liabilities, Gross, offset against liabilities for presentation in the Balance Sheet | -30,512 | -31,538 |
Derivative Liabilities Non Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, Gross Fair Value of Liabilities | 23,245 | 28,054 |
Derivative liabilities, Gross, offset against liabilities for presentation in the Balance Sheet | ($23,245) | ($28,054) |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Effect Of Derivative Instruments In The Consolidated Statements Of Operations) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gains (losses) from oil and natural gas commodity contracts | $26,759 | ($10,699) |
Oil Commodity Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gains (losses) from oil and natural gas commodity contracts | 20,741 | -4,969 |
Natural Gas Commodity Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gains (losses) from oil and natural gas commodity contracts | 6,018 | -5,730 |
Not Designated As Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gains (losses) from oil and natural gas commodity contracts | $26,759 | ($10,699) |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Oil Derivative Contracts) (Details) (Oil Derivative Contracts [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
bbl | |
Price Swap Contracts [Member] | 2015 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 1,567,350 |
Weighted Average Swap Price | 69.99 |
Price Swap Contracts [Member] | 2015 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Swap Price | 93 |
Price Swap Contracts [Member] | 2015 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Swap Price | 50.8 |
Price Swap Contracts [Member] | 2016 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 366,000 |
Weighted Average Swap Price | 93 |
Price Swap Contracts [Member] | 2016 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Swap Price | 94.92 |
Price Swap Contracts [Member] | 2016 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Swap Price | 85.35 |
Short Call Options [Member] | 2015 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 110,000 |
Weighted Average Option Price | 95.5 |
Short Call Options [Member] | 2015 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 95.5 |
Short Call Options [Member] | 2015 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 95.5 |
Short Call Options [Member] | 2016 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 1,042,700 |
Weighted Average Option Price | 102.18 |
Short Call Options [Member] | 2016 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 130 |
Short Call Options [Member] | 2016 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 75 |
Short Call Options [Member] | 2017 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 927,450 |
Weighted Average Option Price | 103.47 |
Short Call Options [Member] | 2017 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 113.83 |
Short Call Options [Member] | 2017 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 85 |
Short Call Options [Member] | 2018 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 307,400 |
Weighted Average Option Price | 104.39 |
Short Call Options [Member] | 2018 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 104.65 |
Short Call Options [Member] | 2018 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 104.15 |
Long Put Options [Member] | 2015 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 980,850 |
Weighted Average Option Price | 81.22 |
Long Put Options [Member] | 2015 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 90 |
Long Put Options [Member] | 2015 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 65 |
Long Put Options [Member] | 2016 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 1,042,700 |
Weighted Average Option Price | 81.95 |
Long Put Options [Member] | 2016 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 95 |
Long Put Options [Member] | 2016 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 63 |
Long Put Options [Member] | 2017 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 744,950 |
Weighted Average Option Price | 83.26 |
Long Put Options [Member] | 2017 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 90 |
Long Put Options [Member] | 2017 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 80 |
Long Put Options [Member] | 2018 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 307,400 |
Weighted Average Option Price | 80 |
Long Put Options [Member] | 2018 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 80 |
Long Put Options [Member] | 2018 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 80 |
Short Put Options [Member] | 2015 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 1,145,850 |
Weighted Average Option Price | 71.88 |
Short Put Options [Member] | 2015 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 90 |
Short Put Options [Member] | 2015 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 60 |
Short Put Options [Member] | 2016 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 1,225,700 |
Weighted Average Option Price | 68.67 |
Short Put Options [Member] | 2016 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 75 |
Short Put Options [Member] | 2016 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 60 |
Short Put Options [Member] | 2017 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 744,950 |
Weighted Average Option Price | 63.26 |
Short Put Options [Member] | 2017 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 70 |
Short Put Options [Member] | 2017 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 60 |
Short Put Options [Member] | 2018 [Member] | |
Derivative [Line Items] | |
Volume in Bbls | 307,400 |
Weighted Average Option Price | 60 |
Short Put Options [Member] | 2018 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 60 |
Short Put Options [Member] | 2018 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 60 |
Derivative_Financial_Instrumen6
Derivative Financial Instruments (Natural Gas Derivative Contracts) (Details) (Natural Gas Derivative Contracts [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
MMBTU | |
2015 [Member] | Price Swap Contracts [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 2,887,500 |
Weighted Average Swap Price | 5.07 |
2015 [Member] | Price Swap Contracts [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Swap Price | 5.91 |
2015 [Member] | Price Swap Contracts [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Swap Price | 4.31 |
2015 [Member] | Short Call Options [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 5,500,000 |
Weighted Average Option Price | 4.52 |
2015 [Member] | Short Call Options [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 4.52 |
2015 [Member] | Short Call Options [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 4.51 |
2015 [Member] | Long Put Options [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 6,088,500 |
Weighted Average Option Price | 3.95 |
2015 [Member] | Long Put Options [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 4 |
2015 [Member] | Long Put Options [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 3.5 |
2015 [Member] | Short Put Options [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 6,393,500 |
Weighted Average Option Price | 3.12 |
2015 [Member] | Short Put Options [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 3.5 |
2015 [Member] | Short Put Options [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 2.75 |
2016 [Member] | Price Swap Contracts [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 8,418,000 |
Weighted Average Swap Price | 4.22 |
2016 [Member] | Price Swap Contracts [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Swap Price | 4.23 |
2016 [Member] | Price Swap Contracts [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Swap Price | 4.22 |
2016 [Member] | Short Call Options [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 455,000 |
Weighted Average Option Price | 7.5 |
2016 [Member] | Short Call Options [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 7.5 |
2016 [Member] | Short Call Options [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 7.5 |
2016 [Member] | Long Put Options [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 455,000 |
Weighted Average Option Price | 5.5 |
2016 [Member] | Long Put Options [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 5.5 |
2016 [Member] | Long Put Options [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 5.5 |
2016 [Member] | Short Put Options [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 5,341,100 |
Weighted Average Option Price | 3.01 |
2016 [Member] | Short Put Options [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 4 |
2016 [Member] | Short Put Options [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 2.72 |
2017 [Member] | Short Call Options [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 6,570,000 |
Weighted Average Option Price | 5 |
2017 [Member] | Short Call Options [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 5 |
2017 [Member] | Short Call Options [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 4.98 |
2017 [Member] | Long Put Options [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 6,570,000 |
Weighted Average Option Price | 4.5 |
2017 [Member] | Long Put Options [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 4.5 |
2017 [Member] | Long Put Options [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 4.5 |
2017 [Member] | Short Put Options [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 6,570,000 |
Weighted Average Option Price | 4 |
2017 [Member] | Short Put Options [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 4 |
2017 [Member] | Short Put Options [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 4 |
2018 [Member] | Short Call Options [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 5,475,000 |
Weighted Average Option Price | 5.5 |
2018 [Member] | Short Call Options [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 5.53 |
2018 [Member] | Short Call Options [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 5.48 |
2018 [Member] | Long Put Options [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 5,475,000 |
Weighted Average Option Price | 4.5 |
2018 [Member] | Long Put Options [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 4.5 |
2018 [Member] | Long Put Options [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 4.5 |
2018 [Member] | Short Put Options [Member] | |
Derivative [Line Items] | |
Volume in MMbtu | 5,475,000 |
Weighted Average Option Price | 4 |
2018 [Member] | Short Put Options [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Option Price | 4 |
2018 [Member] | Short Put Options [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Option Price | 4 |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Asset Retirement Obligations [Abstract] | |||
Balance, beginning of year | $62,872 | ||
Liabilities incurred | 363 | ||
Liabilities settled | -491 | ||
Liabilities transferred in sales of properties | -8 | ||
Revisions to estimates | -192 | ||
Accretion expense | 544 | 558 | |
Balance, end of period | 63,088 | ||
Less: Current portion | 909 | 1,136 | |
Long-term portion | $62,179 | $61,736 |
LongTerm_Debt_And_Notes_Payabl2
Long-Term Debt And Notes Payable To Founder (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Face value of senior notes issued | $450,000,000 | ||
Notes payable to founder | 24,838,000 | 24,540,000 | |
Interest on notes payable to founder | 298,000 | 298,000 | |
Amortization of deferred financing costs | 721,000 | 715,000 | |
Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Date of sixth amended and restated credit agreement | 13-May-10 | ||
Date of maturity of credit facility | 23-May-16 | ||
Credit facility borrowing base | 375,000,000 | ||
Credit facility interest rate | 2.82% | 2.89% | |
Letter of credit outstanding | 900,000 | ||
Minimum Working Capital Ratio | 1 | ||
Minimum Coverage of Interest Expense Ratio | 3 | ||
Maximum Leverage Ratio | 4 | ||
Debt instrument collateral | The credit facility matures on MayB 23, 2016 and is secured by substantially all of our oil and gas properties. | ||
Debt covenants description | The credit facility contains customary covenants including, among others, defined financial covenants, including minimum working capital levels (the ratio of current assets plus the unused borrowing base, to current liabilities, excluding assets and liabilities related to derivative contracts) of 1.0 to 1.0, minimum coverage of interest expenses of 3.0 to 1.0, and maximum leverage of 4.00 to 1.00. The interest coverage and leverage ratios refer to the ratio of earnings before interest, taxes, depreciation, depletion, amortization, and exploration expense ("EBITDAX", as defined more specifically in the credit agreement) to interest expense and to total debt (as defined), respectively. Financial ratios are calculated quarterly using EBITDAX for the most recent twelve months. | ||
Debt covenant compliance description | As of March 31, 2015, we were in compliance with all covenants. | ||
Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility applicable interest rate, description | LIBOR plus applicable margins between 2.00% and 2.75% | ||
Credit Facility [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility applicable interest rate, description | prime rate of Wells Fargo Bank, N. A., plus a margin ranging from 1.00% to 1.75% | ||
Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Margin interest rate | 2.00% | ||
Credit Facility [Member] | Minimum [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Margin interest rate | 1.00% | ||
Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Margin interest rate | 2.75% | ||
Credit Facility [Member] | Maximum [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Margin interest rate | 1.75% | ||
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date of Debt | 15-Oct-18 | ||
Stated interest rate of senior notes | 9.63% | ||
Effective rate of interest on senior notes | 9.78% | ||
Senior notes interest payable date | . Interest is payable semi-annually each AprilB 15th and OctoberB 15th | ||
Debt instrument collateral | The senior notes are unsecured and are general obligations of the Company, and effectively rank junior to any of our existing or future secured indebtedness, which includes the credit facility. The senior notes are unconditionally guaranteed on a senior unsecured basis by each of our material subsidiaries. | ||
Remaining unamortized discount | 1,800,000 | 1,900,000 | |
Senior Notes [Member] | Twelve Mos Beginning October 15, 2014 [Member] | |||
Debt Instrument [Line Items] | |||
Optional redemption price of Senior Notes | 104.81% | ||
Senior Notes [Member] | Twelve Mos Beginning October 15, 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Optional redemption price of Senior Notes | 102.41% | ||
Senior Notes [Member] | Twelve Mos Beginning October 15, 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Optional redemption price of Senior Notes | 100.00% | ||
Notes Payable To Founder [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date of Debt | 31-Dec-21 | ||
Effective rate of interest on senior notes | 10.00% | ||
Debt instrument collateral | These founder notes are unsecured and subordinate to all debt. In connection with the March 25, 2014 recapitalization of our Class B partner described in Note 12, the founder notesB were amended and restated to subordinate them to the paid in kind ("PIK") notes of our Class B partner. The founder notes were also subordinated to the rights of the holders of Class B units to receive distributions under our amended partnership agreement and subordinated to the rights of the holders of Series B Preferred StockB to receive payments. | ||
Notes payable to founder | $24,800,000 | $24,500,000 | |
Payment terms, notes payable to founder | Interest and principal are payable at maturity. | ||
Conversion feature, notes payable to founder | The notesB are convertible into shares of our Class B partner, High Mesa, Inc., common stock upon certain conditions in the event of an initial public offering. |
LongTerm_Debt_And_Notes_Payabl3
Long-Term Debt And Notes Payable To Founder (Long-Term Debt And Notes Payable To Founder) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Long-Term Debt And Notes Payable To Founder [Abstract] | ||
Credit Facility | $310,520 | $319,520 |
Senior Notes, net of discount | 448,215 | 448,088 |
Total long-term debt | 758,735 | 767,608 |
Notes payable to founder | $24,838 | $24,540 |
Accounts_Payable_And_Accrued_L2
Accounts Payable And Accrued Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts Payable And Accrued Liabilities [Abstract] | ||
Capital expenditures | $13,529 | $32,990 |
Revenues and royalties payable | 5,924 | 7,302 |
Operating expenses/taxes | 24,887 | 20,716 |
Interest | 20,306 | 9,136 |
Compensation | 10,144 | 10,586 |
Other | 8,409 | 2,605 |
Total accrued liabilities | 83,199 | 83,335 |
Accounts payable | 23,727 | 34,225 |
Accounts payable and accrued liabilities | $106,926 | $117,560 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Commitments And Contingencies [Abstract] | ||
Liability for soil contamination | $1.20 | $1.10 |
Vesting period, PARs | 5 years | |
Number of performance appreciation rights granted | 0 | |
Number of performance appreciation rights terminated | 27,500 | |
Number of performance appreciation rights | 244,000 | |
Estimated litigation liability | $5 |
Partners_Capital_Deficit_Detai
Partners' Capital (Deficit) (Details) | 3 Months Ended |
Mar. 31, 2015 | |
item | |
Partners' Capital (Deficit) [Abstract] | |
Number of classes of equity ownership is distributed among | 2 |