Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | ||||
Jun. 30, 2014 | Aug. 14, 2014 | Aug. 14, 2014 | Aug. 14, 2014 | Aug. 14, 2014 | |
Common Class A | Common Class B | Common Class C | Common Class E | ||
Document Information [Line Items] | ' | ' | ' | ' | ' |
Document Type | '10-Q | ' | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' | ' | ' |
Trading Symbol | 'CK0001518909 | ' | ' | ' | ' |
Entity Registrant Name | 'Black Elk Energy Offshore Operations, LLC | ' | ' | ' | ' |
Entity Central Index Key | '0001518909 | ' | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 1,361,300 | 114,277,308.50 | 12,031,250 | 103,944,435 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $3,362 | $6,227 |
Restricted cash | 675 | 775 |
Accounts receivable, net of allowance for doubtful accounts of $826 and $811 at June 30, 2014 and December 31, 2013, respectively | 48,352 | 61,747 |
Due from affiliates | 273 | 273 |
Prepaid expenses and other current assets | 8,027 | 7,109 |
Current portion of escrow for abandonment costs | 0 | 21,976 |
Derivative assets | 34 | 1,370 |
TOTAL CURRENT ASSETS | 60,723 | 99,477 |
OIL AND GAS PROPERTIES, successful efforts method of accounting, net of accumulated depreciation, depletion, amortization and impairment of $253,174 and $293,973 at June 30, 2014 and December 31, 2013, respectively | 153,654 | 196,136 |
OTHER PROPERTY AND EQUIPMENT, net of accumulated depreciation of $6,334 and $5,350 at June 30, 2014 and December 31, 2013, respectively | 3,929 | 4,862 |
OTHER ASSETS | ' | ' |
Debt issue costs, net | 690 | 1,488 |
Asset retirement obligation escrow receivable | 20,348 | 20,348 |
Escrow for abandonment costs, net of current portion | 231,010 | 235,473 |
Other assets | 7,796 | 7,830 |
TOTAL OTHER ASSETS | 259,844 | 265,139 |
TOTAL ASSETS | 478,150 | 565,614 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable and accrued expenses | 135,097 | 155,880 |
Derivative liabilities | 8,142 | 9,828 |
Asset retirement obligations | 26,746 | 43,109 |
Current portion of debt and notes payable | 759 | 257 |
TOTAL CURRENT LIABILITIES | 170,744 | 209,074 |
LONG-TERM LIABILITIES | ' | ' |
Gas imbalance payable | 1,144 | 1,888 |
Derivative liabilities | 0 | 31 |
Asset retirement obligations, net of current portion | 224,092 | 233,623 |
Debt, net of current portion, net of unamortized discount of $471 and $617 at June 30, 2014 and December 31, 2013, respectively | 149,560 | 183,929 |
TOTAL LONG-TERM LIABILITIES | 374,796 | 419,471 |
TOTAL LIABILITIES | 545,540 | 628,545 |
CLASS E PREFERRED UNITS | 103,944 | 109,744 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
MEMBERSb DEFICIT | -171,334 | -172,675 |
TOTAL LIABILITIES AND MEMBERSb DEFICIT | $478,150 | $565,614 |
CONSOLIDATED_BALANCE_SHEETS_CO
CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEET (PARENTHETICALS) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $826 | $811 |
Accumulated depreciation, depletion, amortization and impairment | 253,174 | 293,973 |
Accumulated depreciation for other property and equipment | 6,334 | 5,350 |
Unamortized discount of debt | $471 | $617 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
REVENUES: | ' | ' | ' | ' |
Oil sales | $25,057 | $40,035 | $62,881 | $85,936 |
Natural gas sales | 8,802 | 14,109 | 21,474 | 27,445 |
Plant product sales | 1,380 | 1,858 | 3,133 | 4,375 |
Realized (loss) gain on derivative financial instruments | -4,366 | -187 | -8,858 | 152 |
Unrealized (loss) gain on derivative financial instruments | -3 | 5,383 | 381 | -846 |
Other revenues | 6,551 | 5,177 | 13,388 | 9,300 |
TOTAL REVENUES | 37,421 | 66,375 | 92,399 | 126,362 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Lease operating | 27,297 | 46,971 | 53,940 | 90,173 |
Production taxes | -28 | 189 | 69 | 316 |
Workover | 283 | 4,224 | 618 | 6,284 |
Depreciation, depletion and amortization | 8,174 | 11,145 | 21,938 | 22,700 |
Impairment of oil and gas properties | 2,161 | 22,414 | 3,074 | 55,377 |
General and administrative | 5,473 | 9,388 | 12,730 | 18,629 |
Gain on involuntary conversion of asset | 0 | -8,250 | 0 | -10,633 |
Accretion of asset retirement obligations | 1,909 | 7,569 | 2,986 | 15,093 |
Loss (gain) on sale of assets | 4,069 | 1,984 | -34,551 | -35,791 |
Other operating expenses | 2,776 | 1,423 | 5,350 | 2,413 |
TOTAL OPERATING EXPENSES | 52,114 | 97,057 | 66,154 | 164,561 |
(LOSS) INCOME FROM OPERATIONS | -14,693 | -30,682 | 26,245 | -38,199 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
Interest income | 13 | 29 | 36 | 51 |
Miscellaneous expense | -2,035 | -2,564 | -4,466 | -4,946 |
Interest expense | -6,010 | -6,300 | -12,274 | -12,636 |
TOTAL OTHER EXPENSE, NET | -8,032 | -8,835 | -16,704 | -17,531 |
NET (LOSS) INCOME | -22,725 | -39,517 | 9,541 | -55,730 |
LESS: PREFERRED UNIT DIVIDENDS | 3,549 | 4,683 | 8,200 | 7,826 |
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON UNIT HOLDERS | ($26,274) | ($44,200) | $1,341 | ($63,556) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | $9,541 | ($55,730) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation, depletion, and amortization | 21,938 | 22,700 |
Impairment of oil and gas properties | 3,074 | 55,377 |
Accretion of asset retirement obligations | 2,986 | 15,093 |
Amortization of debt issue costs | 1,592 | 2,818 |
Accretion of debt discount | 146 | 128 |
Unrealized loss (gain) on derivative financial instruments | -381 | 846 |
Gain on sale of assets | -34,551 | -35,791 |
Provision on doubtful accounts | 16 | 0 |
Gain on involuntary conversion of asset | 0 | -10,633 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 16,506 | -8,638 |
Escrow receivable, short term | -2,751 | ' |
Due from affiliates, net | 0 | 324 |
Prepaid expenses and other assets | -1,713 | 15,870 |
Other assets | 162 | 254 |
Accounts payable and accrued liabilities | -20,782 | 41,197 |
Gas imbalance | -881 | 316 |
Settlement of asset retirement obligations | -10,676 | -17,476 |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | -15,774 | 26,655 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Additions to oil and gas properties | -10,794 | -78,414 |
Acquisition of oil and gas properties | 0 | -3,250 |
Sale of oil and gas properties | 45,606 | 52,580 |
Additions to property and equipment | -52 | -671 |
Cash assumed in consolidation of Freedom Well Services, LLC | 0 | 473 |
Proceeds received from insurance recovery | 0 | 13,497 |
Deposits | 0 | 25 |
Restricted cash | 100 | -686 |
Escrow payments, net | -189 | -17,089 |
Escrow released | 26,251 | 0 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 60,922 | -33,535 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds on short term notes | 2,851 | 0 |
Payments on short term notes | -2,364 | -3,380 |
Borrowing on bank debt | 0 | 9,000 |
Payments on bank debt | -34,500 | -36,000 |
Debt issuance costs | 0 | -1,302 |
Contributions from members | 0 | 50,000 |
Distributions to members | -14,000 | 0 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | -48,013 | 18,318 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -2,865 | 11,438 |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 6,227 | 1,383 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 3,362 | 12,821 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' |
Cash paid for interest | 671 | 11,512 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Asset retirement obligations relieved due to sale of properties | -18,204 | -22,999 |
Increase in asset retirement due to revaluation | 0 | 2,341 |
Paid-in-kind dividends on preferred equity and accrued distributions to members | $8,200 | $7,826 |
BASIS_OF_PRESENTATION_Notes
BASIS OF PRESENTATION (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
Nature of Operations: Black Elk Energy Offshore Operations, LLC and our wholly-owned subsidiaries (collectively, “Black Elk”, "BEEOO", “we”, “our” or “us”) is a Houston-based oil and natural gas company engaged in the exploration, development, production and exploitation of oil and natural gas properties. We were formed on November 20, 2007 for the purpose of acquiring oil and natural gas producing properties within the Outer Continental Shelf of the United States in the Gulf of Mexico. | |
Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments of a normal and recurring nature considered necessary for a fair presentation of our interim and prior period results have been included in the accompanying consolidated financial statements. The results of operations for the interim period are not necessarily indicative of the results that will be realized for any other interim period or for the entire fiscal year. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”). | |
Reclassifications: Certain reclassifications have been made to conform 2013 balances to our 2014 presentation. Such reclassifications had no effect on net income or cash flow. | |
Principles of Consolidation: The consolidated financial statements include the accounts of Black Elk Energy Offshore Operations, LLC and our wholly-owned subsidiaries, Black Elk Energy Land Operations, LLC and Black Elk Energy Finance Corp. Effective January 1, 2013, in accordance with accounting guidelines for consolidation of variable interest entities, we consolidated Freedom Well Services, LLC (“FWS”), as we determined that we are the primary beneficiary of FWS and will have the power to direct the activities of FWS. All material intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates in Preparation of Financial Statements: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date and the amounts of revenues and expenses recognized during the reporting period. We analyze our estimates based on historical experience, current factors and various other assumptions that we believe to be reasonable under the circumstances. However, actual results could differ from such estimates. | |
Recent Accounting Pronouncements: In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 narrows the definition of “discontinued operations” to dispositions that represent a strategic shift that has or will have a significant impact on the entity’s operations and financial results. The ASU requires additional disclosures regarding assets and liabilities held for sale, and income and losses, including gain or loss on sale, and cash flows from discontinued operations. In addition, the ASU requires disclosures for disposals of individually significant components of the business which do not qualify as discontinued operations, including general information about the disposition and disclosure of the pretax profit or loss from the component for the period of disposal and all comparable historic periods presented. ASU 2014-08 is effective for all fiscal years beginning after December 15, 2014, and can be adopted early for certain asset dispositions and reclassifications of assets from “held and used” to “held for sale.” | |
In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 narrows the definition of “discontinued operations” to dispositions that represent a strategic shift that has or will have a significant impact on the entity’s operations and financial results. The ASU requires additional disclosures regarding assets and liabilities held for sale, and income and losses, including gain or loss on sale, and cash flows from discontinued operations. In addition, the ASU requires disclosures for disposals of individually significant components of the business which do not qualify as discontinued operations, including general information about the disposition and disclosure of the pretax profit or loss from the component for the period of disposal and all comparable historic periods presented. ASU 2014-08 is effective for all fiscal years beginning after December 15, 2014, and can be adopted early for certain asset dispositions and reclassifications of assets from “held and used” to “held for sale.” | |
In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The update provides guidance concerning the recognition and measurement of revenue from contracts with customers. Its objective is to increase the usefulness of information in the financial statements regarding the nature, timing and uncertainty of revenues. The update is effective for the Company beginning in calendar year 2017. We are evaluating the impact this standard will have on our consolidated financial statements and related disclosures. |
LIQUIDITY_RISKS_AND_UNCERTAINT
LIQUIDITY RISKS AND UNCERTAINTIES (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Risks and Uncertainties [Abstract] | ' |
LIQUIDITY RISKS AND UNCERTAINTIES | ' |
LIQUIDITY, RISKS AND UNCERTAINTIES | |
While cash flows were lower than previously projected primarily due to lower production and sales of assets in the 3rd and 4th quarters of 2013, we continued our development operations, in the second quarter of 2014, by supplementing our cash flows from operating activities with funds raised through divestiture of non-key assets. Additionally, we significantly reduced our workforce and associated general and administrative expenses in connection with our down sized operations. | |
As shown in the accompanying consolidated financial statements, we had a net working capital deficit of approximately $110.0 million at June 30, 2014. The combination of restricted credit availability, lower production since the fourth quarter of 2013, settlement of our plugging and abandonment ("P&A") liabilities and additional collateral requirements related to our surety bonds that secure our P&A obligations led to significant cash reductions in the fourth quarter of 2013 and the first six months of 2014. To increase liquidity, we continue to stretch accounts payable, aggressively pursue accounts receivable and seek for opportunities to sell non-core assets. On March 17, 2014, our Credit Facility was paid in full. | |
Our primary use of capital has been for the development and exploitation of oil and natural gas properties as well as providing collateral to secure our P&A obligations. As we plug and abandon certain fields and meet the various criteria related to the corresponding escrow accounts, we expect to release funds from the escrow accounts. Also, our letters of credit with Capital One were backed entirely by cash were paid in full on June 8, 2014. We used these letters of credit to back our surety bonds for P&A obligations. We terminated the 100% cash-backed letters of credit and increased our collateral with the surety agencies in the second quarter of 2014 for P&A obligations. | |
Our capital budget may be adjusted in the future as business conditions warrant and the ultimate amount of capital we expend may fluctuate materially based on market conditions. | |
The amount, timing and allocation of capital expenditures are largely discretionary and within our control. If oil and natural gas prices decline or costs increase significantly, we can defer a significant portion of our budgeted capital expenditures until later periods to prioritize capital projects that we believe have the highest expected returns and potential to generate near-term cash flows. We routinely monitor and adjust our capital expenditures in response to changes in prices, availability of financing, drilling and acquisition costs, industry conditions, the timing of regulatory approvals, the availability of rigs, success or lack of success in drilling activities, contractual obligations, internally generated cash flows and other factors both within and outside our control. | |
We consider the control and flexibility afforded by operating our properties under development to be instrumental to our business plan and strategy. To manage our liquidity, we have the ability to delay certain capital commitments, and within certain constraints, we can continue to conserve capital by further delaying or eliminating future capital commitments. While postponing or eliminating capital projects will delay or reduce future cash flows from scheduled new production, this control and flexibility is one method by which we can balance, on a temporary basis, our capital commitments with our available capital resources. | |
Virtually all of our current production is concentrated in the Gulf of Mexico, which is characterized by production declines more rapid than those of conventional onshore properties. As a result, we are particularly vulnerable to a near-term severe impact resulting from unanticipated complications in the development of, or production from, any single material well or infrastructure installation, including lack of sufficient capital, delays in receiving necessary drilling and operating permits, increased regulation, reduced access to equipment and services, mechanical or operational failures, and severe weather. Any unanticipated significant disruption to, or decline in, our current production levels or prolonged negative changes in commodity prices or operating cost levels could have a material adverse effect on our financial position, results of operations, cash flows, the quantity of proved reserves that we report, and our ability to meet our commitments as they come due. | |
As an oil and gas company, our revenue, profitability, cash flows, proved reserves and future rate of growth are substantially dependent on prevailing prices for oil and natural gas. Historically, the energy markets have been very volatile, and we expect such price volatility to continue. Any extended decline in oil or gas prices could have a material adverse effect on our financial position, results of operations, cash flows, the quantities of oil and gas reserves that we can economically produce, and may restrict our ability to obtain additional financing or to meet the contractual requirements of our debt and other obligations. |
OIL_AND_GAS_PROPERTIES_Notes
OIL AND GAS PROPERTIES (Notes) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
OIL AND GAS PROPERTIES | ' | |||||||
OIL AND GAS PROPERTIES | ||||||||
The following table reflects capitalized costs related to our oil and gas properties: | ||||||||
June 30, | 31-Dec-13 | |||||||
2014 | ||||||||
(Unaudited) | ||||||||
(in thousands) | ||||||||
Proved properties | $ | 406,828 | $ | 490,109 | ||||
Accumulated depreciation, depletion, amortization and impairment | (253,174 | ) | (293,973 | ) | ||||
Oil and gas properties, net | $ | 153,654 | $ | 196,136 | ||||
The following table describes the changes to our asset retirement obligations (unaudited): | ||||||||
(in thousands) | ||||||||
Balance at December 31, 2013 | $ | 276,732 | ||||||
Liabilities relieved due to sale of properties | (18,204 | ) | ||||||
Liabilities settled | (10,676 | ) | ||||||
Accretion expense | 2,986 | |||||||
Balance at June 30, 2014 | 250,838 | |||||||
Less: current portion | (26,746 | ) | ||||||
Total Long-Term Asset Retirement Obligations | $ | 224,092 | ||||||
ACQUISITIONS_AND_DIVESTITURES_
ACQUISITIONS AND DIVESTITURES (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Business Combinations [Abstract] | ' |
ACQUISITIONS AND DIVESTITURES | ' |
ACQUISITIONS AND DIVESTITURES | |
On March 13, 2014 , the Company entered into a Purchase and Sale Agreement (the “PSA”) with a wholly owned subsidiary of Fieldwood Energy LLC (“Fieldwood”). Pursuant to the PSA, Fieldwood acquired all of the Company’s interest in one operated and 15 non-operated fields in the offshore Gulf of Mexico, for $50 million, prior to normal purchase price adjustments (the “Sale”). Refer to the PSA incorporated by reference herein as Exhibit 10.2 for a more detailed description of the terms of the Sale, including the fields that were sold. The Sale closed on March 17, 2014. Reflected in our June 30, 2014, consolidated financial statements is a preliminary gain of $34.6 million related to Fieldwood. | |
On March 26, 2013, we completed the sale of four fields to Renaissance Offshore, LLC for approximately $52.5 million prior to normal purchase price adjustments. The proceeds were used to reduce the amount borrowed under the Credit Facility. Reflected in our June 30, 2013, consolidated financial statements is a gain of $35.8 million. |
DERIVATIVE_INSTRUMENTS_Notes
DERIVATIVE INSTRUMENTS (Notes) | 6 Months Ended | ||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS | ' | ||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS | |||||||||||||||||||||||||||||||
We enter into hedging transactions with major financial institutions to reduce exposure to fluctuations in the price of oil and natural gas. We use financially settled crude oil and natural gas swaps. With a swap, the counterparty is required to make a payment to us if the settlement price for a settlement period is below the hedged price for the transaction, and we are required to make a payment to the counterparty if the settlement price for any settlement period is above the hedged price for the transaction. We elected not to designate any of our derivative contracts as qualifying hedges for financial reporting purposes, therefore all of the derivative instruments are categorized as standalone derivatives and are being marked-to-market with “Unrealized (loss) gain on derivative financial instruments” recorded in the consolidated statements of operations. | |||||||||||||||||||||||||||||||
At June 30, 2014, we had the following contracts outstanding (Asset (Liability) and Fair Value Gain (Loss) (unaudited)): | |||||||||||||||||||||||||||||||
Crude Oil | Natural Gas | Total | |||||||||||||||||||||||||||||
Period | Monthly Volume | Contract | Asset | Fair Value | Monthly Volume | Contract | Asset | Fair Value | Asset | Fair Value | |||||||||||||||||||||
(Bbls) | Price | (Liability) | Gain | (MMBtu) | Price | (Liability) | Gain | (Liability) | Gain | ||||||||||||||||||||||
($/Bbl) | (Loss) | ($/MMBtu) | (Loss) | (Loss) | |||||||||||||||||||||||||||
Swaps: | (in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||||||||
7/14 - 12/14 | 15,000 | 65 | (3,340 | ) | (3,340 | ) | — | — | — | — | (3,340 | ) | (3,340 | ) | |||||||||||||||||
7/14 - 7/14 | 11,845 | 88.8 | (194 | ) | (194 | ) | 39,283 | 4.09 | (12 | ) | (12 | ) | (206 | ) | (206 | ) | |||||||||||||||
8/14 - 8/14 | 13,165 | 88.8 | (203 | ) | (203 | ) | 34,246 | 4.09 | (13 | ) | (13 | ) | (216 | ) | (216 | ) | |||||||||||||||
9/14 - 9/14 | 16,235 | 88.8 | (235 | ) | (235 | ) | 29,753 | 4.09 | (10 | ) | (10 | ) | (245 | ) | (245 | ) | |||||||||||||||
10/14 - 10/14 | 15,605 | 88.8 | (209 | ) | (209 | ) | 28,635 | 4.09 | (10 | ) | (10 | ) | (219 | ) | (219 | ) | |||||||||||||||
11/14 - 11/14 | 18,525 | 88.8 | (233 | ) | (233 | ) | 27,081 | 4.09 | (10 | ) | (10 | ) | (243 | ) | (243 | ) | |||||||||||||||
12/14 - 12/14 | 22,526 | 88.8 | (263 | ) | (263 | ) | 34,114 | 4.09 | (14 | ) | (14 | ) | (277 | ) | (277 | ) | |||||||||||||||
1/15 - 1/15 | — | — | — | — | 27,838 | 4.09 | (13 | ) | (13 | ) | (13 | ) | (13 | ) | |||||||||||||||||
2/15 - 2/15 | — | — | — | — | 24,461 | 4.09 | (11 | ) | (11 | ) | (11 | ) | (11 | ) | |||||||||||||||||
3/15 - 3/15 | — | — | — | — | 26,443 | 4.09 | (9 | ) | (9 | ) | (9 | ) | (9 | ) | |||||||||||||||||
7/14 - 7/14 | 29,944 | 87.85 | (519 | ) | (519 | ) | 20,112 | 4.19 | (4 | ) | (4 | ) | (523 | ) | (523 | ) | |||||||||||||||
8/14 - 8/14 | 29,068 | 87.85 | (476 | ) | (476 | ) | 39,283 | 4.19 | (11 | ) | (11 | ) | (487 | ) | (487 | ) | |||||||||||||||
9/14 - 9/14 | 23,498 | 87.85 | (361 | ) | (361 | ) | 34,246 | 4.19 | (9 | ) | (9 | ) | (370 | ) | (370 | ) | |||||||||||||||
10/14 -10/14 | 25,026 | 87.85 | (359 | ) | (359 | ) | 29,753 | 4.19 | (7 | ) | (7 | ) | (366 | ) | (366 | ) | |||||||||||||||
11/14 - 11/14 | 20,000 | 87.85 | (270 | ) | (270 | ) | 28,635 | 4.19 | (8 | ) | (8 | ) | (278 | ) | (278 | ) | |||||||||||||||
12/14 -12/14 | 31,000 | 87.85 | (389 | ) | (389 | ) | 27,081 | 4.19 | (9 | ) | (9 | ) | (398 | ) | (398 | ) | |||||||||||||||
1/15 - 1/15 | — | — | — | — | 34,114 | 4.19 | (13 | ) | (13 | ) | (13 | ) | (13 | ) | |||||||||||||||||
2/15 - 2/15 | — | — | — | — | 27,838 | 4.19 | (10 | ) | (10 | ) | (10 | ) | (10 | ) | |||||||||||||||||
3/15 - 3/15 | — | — | — | — | 24,461 | 4.19 | (6 | ) | (6 | ) | (6 | ) | (6 | ) | |||||||||||||||||
7/14 - 7/14 | 30,279 | 100.72 | (222 | ) | (222 | ) | 245,330 | 4.47 | 17 | 17 | (205 | ) | (205 | ) | |||||||||||||||||
8/14 - 8/14 | 29,835 | 100.72 | (189 | ) | (189 | ) | 223,294 | 4.47 | 2 | 2 | (187 | ) | (187 | ) | |||||||||||||||||
9/14 - 9/14 | 32,336 | 100.72 | (171 | ) | (171 | ) | 207,094 | 4.47 | 6 | 6 | (165 | ) | (165 | ) | |||||||||||||||||
10/14 - 10/14 | 31,438 | 100.72 | (136 | ) | (136 | ) | 202,612 | 4.47 | 7 | 7 | (129 | ) | (129 | ) | |||||||||||||||||
11/14 - 11/14 | 30,808 | 100.72 | (111 | ) | (111 | ) | 186,296 | 4.47 | 1 | 1 | (110 | ) | (110 | ) | |||||||||||||||||
12/14 - 12/14 | 16,382 | 100.72 | (52 | ) | (52 | ) | 219,770 | 4.47 | (13 | ) | (13 | ) | (65 | ) | (65 | ) | |||||||||||||||
1/15 - 1/15 | — | — | — | — | 94,748 | 4.47 | (10 | ) | (10 | ) | (10 | ) | (10 | ) | |||||||||||||||||
2/15 - 2/15 | — | — | — | — | 104,401 | 4.47 | (8 | ) | (8 | ) | (8 | ) | (8 | ) | |||||||||||||||||
3/15 - 3/15 | — | — | — | — | 105,796 | 4.47 | 1 | 1 | 1 | 1 | |||||||||||||||||||||
(7,932 | ) | (7,932 | ) | (176 | ) | (176 | ) | (8,108 | ) | (8,108 | ) | ||||||||||||||||||||
The fair values of derivative instruments in our consolidated balance sheets were as follows (in thousands) (unaudited): | |||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset (Liability) Derivatives Total | |||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments under Accounting Guidance | Balance Sheet | Fair Value at | Balance Sheet | Fair Value at | Balance Sheet | Fair Value at | |||||||||||||||||||||||||
Location | June 30, | Location | June 30, | Location | June 30, | ||||||||||||||||||||||||||
2014 | 2014 | 2014 | |||||||||||||||||||||||||||||
Commodity Contracts | Derivative financial instruments | Derivative financial | Derivative financial | ||||||||||||||||||||||||||||
instruments | instruments | ||||||||||||||||||||||||||||||
Current | $ | 34 | Current | $ | (8,142 | ) | Current | $ | (8,108 | ) | |||||||||||||||||||||
Non-current | — | Non-current | — | Non-current | — | ||||||||||||||||||||||||||
Total derivative instruments | $ | 34 | $ | (8,142 | ) | $ | (8,108 | ) | |||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset (Liability) Derivatives Total | |||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging | Balance Sheet | Fair Value at | Balance Sheet | Fair Value at | Balance Sheet | Fair Value at | |||||||||||||||||||||||||
Instruments under Accounting Guidance | Location | December 31, | Location | December 31, | Location | December 31, | |||||||||||||||||||||||||
2013 | 2013 | 2013 | |||||||||||||||||||||||||||||
Commodity Contracts | Derivative financial | Derivative financial | Derivative financial | ||||||||||||||||||||||||||||
instruments | instruments | instruments | |||||||||||||||||||||||||||||
Current | $ | 1,370 | Current | $ | (9,828 | ) | Current | $ | (8,458 | ) | |||||||||||||||||||||
Non-current | — | Non-current | (31 | ) | Non-current | (31 | ) | ||||||||||||||||||||||||
Total derivative instruments | $ | 1,370 | $ | (9,859 | ) | $ | (8,489 | ) | |||||||||||||||||||||||
We have a netting agreement with our financial institution that permits net settlement of gross commodity derivative assets against gross commodity derivative liabilities, and we routinely exercise our contractual right to offset realized gains against realized losses when settling with our derivative counterparty. | |||||||||||||||||||||||||||||||
The effect of derivate instruments on our consolidated statements of operations was as follows (in thousands) (unaudited): | |||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments under Accounting Guidance | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||
Statements of Operations Location | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||
Commodity Contracts | Realized (loss) gain on derivative financial instruments | $ | (4,366 | ) | $ | (187 | ) | $ | (8,858 | ) | $ | 152 | |||||||||||||||||||
Commodity Contracts | Unrealized (loss) gain on derivative financial instruments | (3 | ) | 5,383 | 381 | (846 | ) | ||||||||||||||||||||||||
Total derivative instruments | $ | (4,369 | ) | $ | 5,196 | $ | (8,477 | ) | $ | (694 | ) | ||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_Notes
FAIR VALUE MEASUREMENTS (Notes) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
Accounting guidance for fair value measurements clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about fair value measurements. The three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is: | ||||||||||||||||
• | Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. | |||||||||||||||
• | Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||
• | Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. | |||||||||||||||
As required by accounting guidance for fair value measurements, financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. | ||||||||||||||||
The following tables present information about our assets and liabilities measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 and indicate the fair value hierarchy of the valuation techniques utilized by us to determine such fair value (in thousands) (unaudited): | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
at June 30, 2014 | ||||||||||||||||
Using Fair Value Hierarchy | ||||||||||||||||
Fair Value as of | Level 1 | Level 2 | Level 3 | |||||||||||||
30-Jun-14 | ||||||||||||||||
Assets | ||||||||||||||||
Oil and Natural Gas Derivatives | $ | 34 | $ | — | 34 | $ | — | |||||||||
$ | 34 | $ | — | $ | 34 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Oil and Natural Gas Derivatives | $ | (8,142 | ) | $ | — | $ | (8,142 | ) | $ | — | ||||||
$ | (8,142 | ) | $ | — | $ | (8,142 | ) | $ | — | |||||||
Fair Value Measurements | ||||||||||||||||
at December 31, 2013 | ||||||||||||||||
Using Fair Value Hierarchy | ||||||||||||||||
Fair Value as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2013 | ||||||||||||||||
Assets | ||||||||||||||||
Oil and Natural Gas Derivatives | $ | 1,370 | $ | — | $ | 1,370 | $ | — | ||||||||
$ | 1,370 | $ | — | $ | 1,370 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Oil and Natural Gas Derivatives | $ | (9,859 | ) | $ | — | $ | (9,859 | ) | $ | — | ||||||
$ | (9,859 | ) | $ | — | $ | (9,859 | ) | $ | — | |||||||
We estimated the fair value of derivative instruments using internally-developed models that use as their basis readily observable market parameters. | ||||||||||||||||
The determination of the fair values above incorporates various factors required under accounting guidance for fair value measurements. These factors include not only the impact of our nonperformance risk but also the credit standing of the counterparties involved in our derivative contracts. | ||||||||||||||||
As of June 30, 2014, the estimated fair value of cash and cash equivalents, accounts receivable, other current assets, accounts payable and other current liabilities approximated their carrying value due to their short-term nature. The estimated fair value of our debt was primarily based on quoted market prices as well as prices for similar debt based on recent market transactions. The fair value of debt at June 30, 2014 was $149.5 million. | ||||||||||||||||
Fair Value on a Non-Recurring Basis | ||||||||||||||||
Oil and gas properties with a carrying value of $156.8 million were written down to their fair value of $153.7 million, resulting in an impairment charge of $2.2 million and $3.1 million for the three and six months ended June 30, 2014, which is recognized under “ Impairments of oil and gas properties” in the consolidated statements of operations. As of June 30, 2013, oil and gas properties with a carrying value of $279.4 million were written down to their fair value of $224.1 million, resulting in an impairment charge of $22.4 million and $55.3 million for the three and six months ended June 30, 2013, respectively. The impairment analysis is based on the estimated discounted future cash flows for those properties. Significant Level 3 assumptions used in the calculation of estimated discounted cash flows included our estimate of future oil and gas prices, production costs, development expenditures, estimated quantities and timing of production of proved reserves, appropriate risk-adjusted discount rates, and other relevant data. |
DEBT_AND_NOTES_PAYABLE_Notes
DEBT AND NOTES PAYABLE (Notes) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
DEBT AND NOTES PAYABLE | ' | |||||||
DEBT AND NOTES PAYABLE | ||||||||
Our debt and notes payable are summarized as follows: | ||||||||
June 30, | 31-Dec-13 | |||||||
2014 | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Senior Secured Revolving Credit Facility | $ | — | $ | 34,500 | ||||
13.75% Senior Secured Notes, net of discount | 149,529 | 149,383 | ||||||
AFCO Credit Corporation-insurance note payable | — | — | ||||||
Other debt | 790 | 303 | ||||||
Total debt | 150,319 | 184,186 | ||||||
Less: current portion | (759 | ) | (257 | ) | ||||
Total long-term debt | $ | 149,560 | $ | 183,929 | ||||
Senior Secured Revolving Credit Facility | ||||||||
Our Credit Facility was paid in full on March 17, 2014. As of June 30, 2014, we had zero borrowings outstanding in letters of credit issued under the Credit Facility. On June 8, 2014, our letters of credit were paid in full and terminated. | ||||||||
13.75% Senior Secured Notes | ||||||||
On November 23, 2010, we issued $150 million face value of 13.75% Notes discounted at 99.109% (the "Notes"). The net proceeds were used to repay all of the outstanding indebtedness under our prior revolving Credit Facility, to fund BOEM collateral requirements, and to prefund our escrow accounts. We pay interest on the Notes semi-annually in arrears, on June 1 and December 1 of each year, which commenced on June 1, 2011. The Notes will mature on December 1, 2015, at which time all principal then outstanding will be due. As of June 30, 2014, the recorded value of the Notes was $149.6 million, which includes the unamortized discount of $0.5 million. We incurred underwriting and debt issue costs of $7.2 million, which have been capitalized and are being amortized over the life of the Notes. | ||||||||
The Notes are secured by a security interest in our and the guarantors’ assets (excluding the W&T Escrow Accounts (as defined below)). | ||||||||
We have the right to redeem the Notes under various circumstances. If we experience a change of control, the holders of the Notes may require us to repurchase the Notes at 101% of the principal amount thereof, plus accrued unpaid interest. We also have an optional redemption in which we may redeem up to 35% of the aggregate principal amount of the Notes at a price equal to 110.0% of the principal amount, plus accrued interest and unpaid interest to the date of redemption, with the net cash proceeds of certain equity offerings until December 1, 2013. From December 1, 2013 until December 1, 2014, we may redeem some or all of the Notes at an initial redemption price equal to par value plus one-half the coupon which equals 106.875% plus accrued and unpaid interest to the date of the redemption. On or after December 1, 2014, we may redeem some or all of the Notes at a redemption price equal to par plus accrued and unpaid interest to the date of redemption. | ||||||||
On May 23, 2011, we commenced a Consent Solicitation that resulted in our entry into the First Supplemental Indenture. We paid a consent solicitation fee of $4.5 million. The First Supplemental Indenture amended the Indenture, among other things, to: (1) increase the amount of capital expenditures permitted to be made by us on an annual basis, (2) enable us to obtain financial support from our majority equity holder by way of a $30 million investment in Sponsor Preferred Stock, which can be repaid over time, and (3) obligate us to make an offer to repurchase the Notes semi-annually at an offer price equal to 103% of the aggregate principal amount of Notes repurchased plus accrued and unpaid interest to the extent we meet certain defined financial tests and as permitted by our credit facilities. | ||||||||
The Notes require us to maintain certain financial covenants. Specifically, we may not permit our SEC PV-10 to consolidated leverage to be less than 1.4 to 1.0 as of the last day of each fiscal year. In addition, we and our subsidiaries (excluding FWS) are subject to various covenants, including restricted payments, incurrence of indebtedness and issuance of preferred stock, liens, dividends and other payments, merger, consolidation or sale of assets, transactions with affiliates, designation of restricted and unrestricted subsidiaries, and a maximum limit for capital expenditures. Our limitation on capital expenditures was amended in conjunction with the Consent Solicitation on May 31, 2011 to a maximum limit of $60 million for the fiscal year ending December 31, 2012 and 30% of consolidated earnings before interest expense, income taxes, DD&A and impairment, and exploration expense for any year thereafter. Compliance is not required until the end of the year. | ||||||||
For a discussion of the pending cash tender offer to purchase all of the Notes, please see “Notes to Consolidated Financial Statements-Note 11-Subsequent Events” in this Form 10-Q. | ||||||||
The amounts of required principal payments based on our outstanding debt amounts as of June 30, 2014, were as follows: | ||||||||
Period Ending June 30, | (in thousands) | |||||||
2015 | $ | 760 | ||||||
2016 | 150,030 | |||||||
2017 | — | |||||||
150,790 | ||||||||
Unamortized discount on 13.75% Senior Secured Notes | (471 | ) | ||||||
Total debt | $ | 150,319 | ||||||
MEMBERS_DEFICIT_Notes
MEMBERS DEFICIT (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
MEMBERS DEFICIT | ' |
MEMBERS' DEFICIT | |
The Member Agreement (the “Agreement”) has four (Class A, B, C, and E) classes of members. Net income (loss) is allocated to the members in accordance with the terms set forth in the Agreement. The Agreement allows for preferred returns to certain members after internal rate of return and return of investment hurdles are met. | |
In the first quarter of 2013, we entered into contribution agreements with PPVA (Equity) and Platinum Partners Black Elk Opportunities Fund LLC (“PPBE”) or entities designated by PPBE (together, the “Platinum Group”) pursuant to which we have issued 50.0 million additional Class E Preferred Units (the “Class E Units”) and 3.8 million additional Class B Units to the Platinum Group for an aggregate offering price of $50.0 million. The Class E Units are recorded under "Preferred Units" and the Class B Units are included in "Members Deficit" in the consolidated balance sheets. In addition, we also agreed to issue an additional 43 million Class E Units in exchange for $30.0 million of outstanding Class D Preferred Units and $13.0 million of paid-in-kind dividends. The Class D Preferred Units were recorded under "Preferred Units" in the consolidated balance sheets. The Class E Units had a preferred return of 20% per annum, which was set to increase to 36% on March 25, 2014. On March 24, 2014, AQR Diversified Arbitrage Fund exercised its right, and we complied, requiring us and PPVA to repurchase all of its Class E Preferred Units for $14.0 million. We obtained waivers to the Class E Preferred Units waiving the incremental preferred return. As a result of the waivers obtained, we issued Class E Units of approximately $8.2 million as paid-in-kind dividends as of June 30, 2014. | |
On February 12, 2013, we entered into an agreement with Platinum under which we agreed to issue Class B Units to Platinum in exchange for financial consulting services, including (1) analysis and assessment of our business and financial condition and compliance with financial covenants in our Credit Facility, (2) discussion with us and senior bank lenders regarding capital contributions and divestitures of non-core assets, and (3) coordination with our attorneys, accountants, and other professionals. On February 12, 2013, we issued 1,131,458.5 Class B Units to PPVA Black Elk (Equity) LLC, an affiliate of Platinum, pursuant to such agreement. | |
On February 12, 2013, we entered into the Fourth Amendment to the Second Amended and Restated Limited Liability Operating Agreement of the Company (the “Fourth Amendment”). The Fourth Amendment amended the Company’s operating agreement to effectuate a 10,000 to 1 unit split for each of the Class A Units, Class B Units and Class C Units. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Notes) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
COMMITMENTS AND CONTINGENCIES | ' | |||
COMMITMENTS AND CONTINGENCIES | ||||
General | ||||
Due to the nature of our business, some contamination of the real estate property owned or leased by us is possible. Environmental site assessment of the property would be necessary to adequately determine remediation costs, if any. Management does not consider the amounts that would result from any environmental site assessments to be significant to the consolidated financial position or results of our operations. Accordingly, no provision for potential remediation costs is reflected in the accompanying consolidated financial statements. We are subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on our consolidated financial position or results of operations. | ||||
West Delta 32 | ||||
We continue to go through the discovery phases of the civil litigation of the personal injury lawsuits filed as a result of the November 16, 2012, explosion and fire which occurred on our West Delta 32-E platform, located in the Gulf of Mexico approximately 17 miles southeast of Grand Isle, Louisiana. At the time of the explosion, production on the platform had been shut in while crews of independent contractors performed maintenance and construction on the platform. Three workers died as a result of the explosion and subsequent fire, and others sustained varying degrees of personal injuries | ||||
Mediation occurred on June 19th and 20th, 2014 for these civil lawsuits in Houston, Texas, and was largely unsuccessful. One suit settled, but the remaining cases are still pending. For each proceeding, we are currently evaluating the plaintiff’s petitions and determining appropriate courses of response with the aid of outside legal counsel. These proceedings are at a preliminary stage; accordingly, we currently cannot assess the probability of losses, or reasonably estimate a range of any potential losses related to the proceedings. We intend to vigorously defend the Company in these proceedings. | ||||
As previously reported, six investors in Black Elk Energy, LLC (“BEE”) filed a purported derivative complaint on behalf of BEE in the Supreme Court of the State of New York, County of New York, against the Company, John Hoffman, Iron Island Technologies Inc., and various entities and individuals associated with the Company’s majority unit owner (the “Platinum Defendants”). The lawsuit seeks unspecified damages allegedly arising from (1) the dilution of BEE’s ownership interest in the Company through various financing transactions with the Platinum Defendants and the issuance of membership units under management and employee incentive programs; and (2) the alleged mismanagement of the Company in connection with certain alleged safety violations and the West Delta 32 Incident. We believe there are strong defenses to the claims asserted in the lawsuit, and the Company intends to defend the case vigorously. On or about September 24, 2013, Plaintiffs filed a motion for a preliminary injunction to restrain a portion of the proceeds of the Company’s proposed sale of certain oil fields in the Gulf of Mexico. The Court denied the motion on November 15, 2013. On or about November 20, 2013, we filed a motion to dismiss the complaint in its entirety, inter alia, on the grounds that (i) the claims fail to state a cause of action; (ii) the claims are refuted by documentary evidence; (iii) plaintiffs, who are not members of the Company, lack standing to assert a claim for mismanagement of the Company; and (iv) certain claims are barred by the statute of limitations. The motion is now fully briefed. Discovery is at an early stage, with the parties beginning to make rolling document productions. | ||||
The arbitration case involving GIS and Black Elk for unpaid invoices for services and materials provided by GIS (the “Invoice Arbitration”) is scheduled for hearing before a single arbitrator on December 1, 2014. The arbitration case for damages to the West Delta 32 Platform (the “Platform Arbitration”) is scheduled for hearing before a three-arbitrator panel on May 12, 2015. The arbitration proceeding initiated by Black Elk against Compass Engineering & Consultants, LLC for damages arising from the explosion of the WD-32 Platform has been abated pending resolution of Compass’ separate lawsuit filed in the United States District for the Western District of Louisiana seeking a declaration that it was not subjected to arbitration. | ||||
Vistar Oil Texas LLC Joint Venture | ||||
On April 16, 2014, Vistar Oil Texas LLC (“Vistar”) filed a petition against Black Elk in Harris County District Court. This suit alleges that Black Elk breached an Acquisition and Participation Agreement and a Joint Operating Agreement between the parties, primarily by failing to provide Vistar with the funds required to bring several wells into operation in Wilson County, Texas. Vistar alleges damages of approximately $6,500,000, certain lease acquisition costs and promissory note payments required to cover liens placed on the wells. Vistar further alleges that Black Elk is in breach by refusing to provide approximately $10,350,000 to Vistar to acquire additional property. This case is in the beginning stages of discovery. | ||||
Operating Leases | ||||
We lease office space and certain equipment under non-cancellable operating lease agreements that expire on various dates through 2020. | ||||
Approximate future minimum lease payments for operating leases at June 30, 2014 were as follows: | ||||
Period Ending June 30, | (in thousands) | |||
2015 | $ | 3,973 | ||
2016 | 2,072 | |||
2017 | 1,808 | |||
2018 | 1,620 | |||
2019 | 1,530 | |||
Thereafter | 2,326 | |||
$ | 13,329 | |||
Escrow Accounts | ||||
Pursuant to the purchase agreement from W&T Offshore, Inc. (the “W&T Acquisition”), we are required to fund two escrow accounts (the “W&T Escrow Accounts”), relating to the operating and non-operating properties that were acquired in maximum aggregate amount of $63.8 million ($32.6 million operated and $31.2 million non-operated) for future P&A costs that may be incurred on such properties. As of November 2010, we fully funded the operating escrow account in the amount of $32.6 million and the payment schedule for the Non-Operated Properties Escrow Account was amended and commenced on December 2011. As of June 30, 2014, we have funded $19.5 million into the non-operating escrow account, leaving $11.7 million to be funded through May 1, 2017. | ||||
The obligations under the W&T Escrow Accounts are fully guaranteed by an affiliate of Platinum. W&T Offshore Inc. (“W&T”) has a first lien on the entirety of the W&T Escrow Accounts, and BP Corporation North America Inc. and Platinum are pari passu second lien holders. Once P&A obligations with respect to the interest in properties acquired from the W&T Acquisition have been fully satisfied, the lien on the W&T Escrow Accounts will be automatically extinguished. W&T also has a second priority lien with respect to the interest in properties acquired from the W&T Acquisition (with Platinum and BNP Paribas sharing a first priority lien), which lien will be released once the W&T Escrow Accounts have been fully funded. | ||||
On December 19, 2012, we entered into a Third Amendment to Purchase and Sale Agreement (the “Third Amendment”) with W&T. Pursuant to the Third Amendment, we caused performance bonds (the “ARGO Bonds”) in an aggregate amount of $32.6 million to be issued by Argonaut Insurance Company to W&T to guaranty our performance of certain plugging and abandonment obligations. Upon receipt of the ARGO Bonds, W&T (i) released its rights to any money held in an escrow account established to secure our performance of certain plugging and abandonment obligations with respect to the Operated Properties Escrow Account, (ii) released the security interest and deposit account control agreement formerly securing its rights in the Operated Properties Escrow Account and (iii) authorized the escrow agent to release such funds from the Operated Properties Escrow Account to or at our direction. In addition, we and W&T agreed that until the funding of an escrow account established to our performance of certain plugging and abandonment obligations with respect to certain non-operated properties is complete, we may not obtain reductions of the ARGO Bonds under any circumstances without W&T’s consent. | ||||
Pursuant to the purchase agreement for the Maritech acquisition, we are required to fund an escrow account (the “Maritech Escrow Account”), relating to the properties that were acquired, of $13.1 million to be used for future P&A costs that may be incurred on such properties. This escrow obligation was fully funded in February 2014. | ||||
In regards to the Merit acquisition, we are required to establish an escrow account to secure the performance of our P&A obligations and other indemnity obligations with respect to P&A and/or decommissioning of the acquired wells and facilities. We paid $33 million in surety bonds at closing and are required to, over time, deposit in the escrow account an amount equal to $60 million, which is to be paid in 30 equal monthly installments payable on the first day of each month commencing on June 1, 2011. This escrow obligation was fully funded in November 2013. |
RELATED_PARTY_TRANSACTIONS_Not
RELATED PARTY TRANSACTIONS (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | |
We pay for certain operating and general and administration expenses on behalf of Black Elk Energy, LLC. At both June 30, 2014 and December 31, 2013, we had receivables from Black Elk Energy, LLC in the amount of $273,430. | |
On August 30, 2013, we consented to the assignment by Capital One Bank, N.A. and the other lenders of all of their rights and obligations under our Credit Facility to White Elk LLC, as Administrative Agent and Lender, and Resource Value Group LLC, as Lender. Resource Value Group LLC is affiliated with Platinum. As part of this transaction, we paid a required $0.3 million purchase fee on behalf of Platinum pursuant to the Loan Purchase Agreement. | |
During 2011, we entered into a contribution agreement with Platinum. We also entered into additional contributions with (PPVA (Equity)) and the Platinum Group in 2013. Please see "Notes to Consolidated Financial Statements - Note 8 - Member's Deficit" in this Form 10-Q for additional discussion regarding member's contributions. | |
On May 28, 2013, FWS entered into an equipment lease agreement with Pea and Eigh Company, LLC (“Pea and Eigh”), a related party of Platinum. The lease began on July 1, 2013 and is payable in monthly installments of approximately $35,000, maturing on December 31, 2013, with an option to purchase the equipment for $1.5 million. As of June 30, 2014, we have not purchased all of the equipment. We currently have restricted cash of $0.6 million for the additional equipment to be purchased as well as advances due to Pea and Eigh, which is included in “Accounts payable and accrued expenses”. |
SUBSEQUENT_EVENTS_Notes
SUBSEQUENT EVENTS (Notes) | 6 Months Ended | |
Jun. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
SUBSEQUENT EVENTS | ||
Renaissance Sale | ||
On July 10, 2014, we entered into a Purchase and Sale Agreement with Renaissance Offshore, LLC. Pursuant to the Purchase and Sale Agreement, Renaissance will acquire our interests, subject to certain exclusions, in nine fields, seven operated and two non-operated, in the offshore Gulf of Mexico, for $170 million in cash, subject to normal purchase price adjustments (the "Renaissance Sale"). Subject to customary closing conditions, the Renaissance Sale is expected to close in August 2014. The assets to be sold in the Renaissance Sale represent a significant amount of our cash flow, proved reserves and production. | ||
Tender Offer and Consent Solicitation | ||
On July 16, 2014, we commenced a cash tender offer to purchase all of the Notes on the terms and subject to the conditions set forth in an Offer to Purchase and Consent Solicitation Statement dated July 16, 2014. In conjunction with the tender offer, and on the terms and subject to the conditions set forth in the offer documents, we are soliciting consents of holders of the Notes to modify certain of the restrictive covenants contained in the indenture governing the Notes. The Offer and the Consent Solicitation are being made solely by means of the offer documents, which were made available to the holders of Notes. Under no circumstances shall this Quarterly Report on Form 10-Q constitute an offer to purchase or the solicitation of an offer to sell the Notes or a solicitation of consents to the proposed amendments. | ||
Holders of Notes must validly tender their Notes at or before 5:00 p.m., Eastern Standard Time, on August 13, 2014 in order to be eligible to receive the offer consideration. The total consideration for each $1,000 principal amount of Notes purchased pursuant to the Offer will be $1,000 plus accrued and unpaid interest in respect of such purchased Notes from the last interest payment date to, but not including, the applicable payment date for the Notes. | ||
The Offer and the Consent Solicitation are being made in connection with our proposed disposition of certain assets pursuant to the Renaissance Sale. The net proceeds of the Renaissance Sale will be used to fund our purchase of the Notes. If the amount required to purchase all Notes validly tendered before the expiration time (including all accrued and unpaid interest) exceeds the amount of net proceeds from the Renaissance Sale, the Notes validly tendered will be accepted and purchased on a pro rata basis according to the principal amount of Notes tendered by each tendering Holder. | ||
Our obligation to accept for purchase and to pay for Notes validly tendered and not withdrawn pursuant to the tender offer is subject to the satisfaction or waiver, in our discretion, of certain conditions, including, among others, our receipt of consents from the holders of at least a majority in principal amount of the outstanding Notes to the proposed amendments and our receipt of aggregate proceeds in the Renaissance Sale of at least $100 million. | ||
If consents from the holders of at least a majority in principal amount of the outstanding Notes have been validly received prior to the expiration time and the conditions to effectiveness have been satisfied or waived, we will enter into a Second Supplemental Indenture in order to effect the proposed amendments to the indenture. Among other things, the proposed amendments would: | ||
• | allow us to apply the net proceeds from the Renaissance Sale to consummate the tender offer and to use any remaining proceeds from the Renaissance Sale to purchase our preferred equity; | |
• | permit the incurrence of indebtedness arising from the performance of our plugging and abandonment obligations and liens on our oil and gas properties to secure such indebtedness; and | |
• | remove the covenant prohibiting us from incurring aggregate capital expenditures in excess of 30% of Consolidated EBITDAX in any fiscal year. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of Operations | ' |
Nature of Operations: Black Elk Energy Offshore Operations, LLC and our wholly-owned subsidiaries (collectively, “Black Elk”, "BEEOO", “we”, “our” or “us”) is a Houston-based oil and natural gas company engaged in the exploration, development, production and exploitation of oil and natural gas properties. We were formed on November 20, 2007 for the purpose of acquiring oil and natural gas producing properties within the Outer Continental Shelf of the United States in the Gulf of Mexico. | |
Basis of Presentation | ' |
Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments of a normal and recurring nature considered necessary for a fair presentation of our interim and prior period results have been included in the accompanying consolidated financial statements. The results of operations for the interim period are not necessarily indicative of the results that will be realized for any other interim period or for the entire fiscal year. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”). | |
Reclassifications | ' |
Reclassifications: Certain reclassifications have been made to conform 2013 balances to our 2014 presentation. Such reclassifications had no effect on net income or cash flow. | |
Principles of Consolidation | ' |
Principles of Consolidation: The consolidated financial statements include the accounts of Black Elk Energy Offshore Operations, LLC and our wholly-owned subsidiaries, Black Elk Energy Land Operations, LLC and Black Elk Energy Finance Corp. Effective January 1, 2013, in accordance with accounting guidelines for consolidation of variable interest entities, we consolidated Freedom Well Services, LLC (“FWS”), as we determined that we are the primary beneficiary of FWS and will have the power to direct the activities of FWS. All material intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates in Preparation of Financial Statements | ' |
Use of Estimates in Preparation of Financial Statements: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date and the amounts of revenues and expenses recognized during the reporting period. We analyze our estimates based on historical experience, current factors and various other assumptions that we believe to be reasonable under the circumstances. However, actual results could differ from such estimates. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements: In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 narrows the definition of “discontinued operations” to dispositions that represent a strategic shift that has or will have a significant impact on the entity’s operations and financial results. The ASU requires additional disclosures regarding assets and liabilities held for sale, and income and losses, including gain or loss on sale, and cash flows from discontinued operations. In addition, the ASU requires disclosures for disposals of individually significant components of the business which do not qualify as discontinued operations, including general information about the disposition and disclosure of the pretax profit or loss from the component for the period of disposal and all comparable historic periods presented. ASU 2014-08 is effective for all fiscal years beginning after December 15, 2014, and can be adopted early for certain asset dispositions and reclassifications of assets from “held and used” to “held for sale.” | |
In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 narrows the definition of “discontinued operations” to dispositions that represent a strategic shift that has or will have a significant impact on the entity’s operations and financial results. The ASU requires additional disclosures regarding assets and liabilities held for sale, and income and losses, including gain or loss on sale, and cash flows from discontinued operations. In addition, the ASU requires disclosures for disposals of individually significant components of the business which do not qualify as discontinued operations, including general information about the disposition and disclosure of the pretax profit or loss from the component for the period of disposal and all comparable historic periods presented. ASU 2014-08 is effective for all fiscal years beginning after December 15, 2014, and can be adopted early for certain asset dispositions and reclassifications of assets from “held and used” to “held for sale.” | |
In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The update provides guidance concerning the recognition and measurement of revenue from contracts with customers. Its objective is to increase the usefulness of information in the financial statements regarding the nature, timing and uncertainty of revenues. The update is effective for the Company beginning in calendar year 2017. We are evaluating the impact this standard will have on our consolidated financial statements and related disclosures. | |
Liquidity, Risks and Uncertainties | ' |
LIQUIDITY, RISKS AND UNCERTAINTIES | |
While cash flows were lower than previously projected primarily due to lower production and sales of assets in the 3rd and 4th quarters of 2013, we continued our development operations, in the second quarter of 2014, by supplementing our cash flows from operating activities with funds raised through divestiture of non-key assets. Additionally, we significantly reduced our workforce and associated general and administrative expenses in connection with our down sized operations. | |
As shown in the accompanying consolidated financial statements, we had a net working capital deficit of approximately $110.0 million at June 30, 2014. The combination of restricted credit availability, lower production since the fourth quarter of 2013, settlement of our plugging and abandonment ("P&A") liabilities and additional collateral requirements related to our surety bonds that secure our P&A obligations led to significant cash reductions in the fourth quarter of 2013 and the first six months of 2014. To increase liquidity, we continue to stretch accounts payable, aggressively pursue accounts receivable and seek for opportunities to sell non-core assets. On March 17, 2014, our Credit Facility was paid in full. | |
Our primary use of capital has been for the development and exploitation of oil and natural gas properties as well as providing collateral to secure our P&A obligations. As we plug and abandon certain fields and meet the various criteria related to the corresponding escrow accounts, we expect to release funds from the escrow accounts. Also, our letters of credit with Capital One were backed entirely by cash were paid in full on June 8, 2014. We used these letters of credit to back our surety bonds for P&A obligations. We terminated the 100% cash-backed letters of credit and increased our collateral with the surety agencies in the second quarter of 2014 for P&A obligations. | |
Our capital budget may be adjusted in the future as business conditions warrant and the ultimate amount of capital we expend may fluctuate materially based on market conditions. | |
The amount, timing and allocation of capital expenditures are largely discretionary and within our control. If oil and natural gas prices decline or costs increase significantly, we can defer a significant portion of our budgeted capital expenditures until later periods to prioritize capital projects that we believe have the highest expected returns and potential to generate near-term cash flows. We routinely monitor and adjust our capital expenditures in response to changes in prices, availability of financing, drilling and acquisition costs, industry conditions, the timing of regulatory approvals, the availability of rigs, success or lack of success in drilling activities, contractual obligations, internally generated cash flows and other factors both within and outside our control. | |
We consider the control and flexibility afforded by operating our properties under development to be instrumental to our business plan and strategy. To manage our liquidity, we have the ability to delay certain capital commitments, and within certain constraints, we can continue to conserve capital by further delaying or eliminating future capital commitments. While postponing or eliminating capital projects will delay or reduce future cash flows from scheduled new production, this control and flexibility is one method by which we can balance, on a temporary basis, our capital commitments with our available capital resources. | |
Virtually all of our current production is concentrated in the Gulf of Mexico, which is characterized by production declines more rapid than those of conventional onshore properties. As a result, we are particularly vulnerable to a near-term severe impact resulting from unanticipated complications in the development of, or production from, any single material well or infrastructure installation, including lack of sufficient capital, delays in receiving necessary drilling and operating permits, increased regulation, reduced access to equipment and services, mechanical or operational failures, and severe weather. Any unanticipated significant disruption to, or decline in, our current production levels or prolonged negative changes in commodity prices or operating cost levels could have a material adverse effect on our financial position, results of operations, cash flows, the quantity of proved reserves that we report, and our ability to meet our commitments as they come due. | |
As an oil and gas company, our revenue, profitability, cash flows, proved reserves and future rate of growth are substantially dependent on prevailing prices for oil and natural gas. Historically, the energy markets have been very volatile, and we expect such price volatility to continue. Any extended decline in oil or gas prices could have a material adverse effect on our financial position, results of operations, cash flows, the quantities of oil and gas reserves that we can economically produce, and may restrict our ability to obtain additional financing or to meet the contractual requirements of our debt and other obligations. |
OIL_AND_GAS_PROPERTIES_Tables
OIL AND GAS PROPERTIES (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Capitalized Costs Related to Oil and Gas Properties | ' | |||||||
The following table reflects capitalized costs related to our oil and gas properties: | ||||||||
June 30, | 31-Dec-13 | |||||||
2014 | ||||||||
(Unaudited) | ||||||||
(in thousands) | ||||||||
Proved properties | $ | 406,828 | $ | 490,109 | ||||
Accumulated depreciation, depletion, amortization and impairment | (253,174 | ) | (293,973 | ) | ||||
Oil and gas properties, net | $ | 153,654 | $ | 196,136 | ||||
Schedules of Change to Our Asset Retirement Obligations | ' | |||||||
The following table describes the changes to our asset retirement obligations (unaudited): | ||||||||
(in thousands) | ||||||||
Balance at December 31, 2013 | $ | 276,732 | ||||||
Liabilities relieved due to sale of properties | (18,204 | ) | ||||||
Liabilities settled | (10,676 | ) | ||||||
Accretion expense | 2,986 | |||||||
Balance at June 30, 2014 | 250,838 | |||||||
Less: current portion | (26,746 | ) | ||||||
Total Long-Term Asset Retirement Obligations | $ | 224,092 | ||||||
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||
Commodity Derivative Instruments | ' | ||||||||||||||||||||||||||||||
At June 30, 2014, we had the following contracts outstanding (Asset (Liability) and Fair Value Gain (Loss) (unaudited)): | |||||||||||||||||||||||||||||||
Crude Oil | Natural Gas | Total | |||||||||||||||||||||||||||||
Period | Monthly Volume | Contract | Asset | Fair Value | Monthly Volume | Contract | Asset | Fair Value | Asset | Fair Value | |||||||||||||||||||||
(Bbls) | Price | (Liability) | Gain | (MMBtu) | Price | (Liability) | Gain | (Liability) | Gain | ||||||||||||||||||||||
($/Bbl) | (Loss) | ($/MMBtu) | (Loss) | (Loss) | |||||||||||||||||||||||||||
Swaps: | (in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||||||||
7/14 - 12/14 | 15,000 | 65 | (3,340 | ) | (3,340 | ) | — | — | — | — | (3,340 | ) | (3,340 | ) | |||||||||||||||||
7/14 - 7/14 | 11,845 | 88.8 | (194 | ) | (194 | ) | 39,283 | 4.09 | (12 | ) | (12 | ) | (206 | ) | (206 | ) | |||||||||||||||
8/14 - 8/14 | 13,165 | 88.8 | (203 | ) | (203 | ) | 34,246 | 4.09 | (13 | ) | (13 | ) | (216 | ) | (216 | ) | |||||||||||||||
9/14 - 9/14 | 16,235 | 88.8 | (235 | ) | (235 | ) | 29,753 | 4.09 | (10 | ) | (10 | ) | (245 | ) | (245 | ) | |||||||||||||||
10/14 - 10/14 | 15,605 | 88.8 | (209 | ) | (209 | ) | 28,635 | 4.09 | (10 | ) | (10 | ) | (219 | ) | (219 | ) | |||||||||||||||
11/14 - 11/14 | 18,525 | 88.8 | (233 | ) | (233 | ) | 27,081 | 4.09 | (10 | ) | (10 | ) | (243 | ) | (243 | ) | |||||||||||||||
12/14 - 12/14 | 22,526 | 88.8 | (263 | ) | (263 | ) | 34,114 | 4.09 | (14 | ) | (14 | ) | (277 | ) | (277 | ) | |||||||||||||||
1/15 - 1/15 | — | — | — | — | 27,838 | 4.09 | (13 | ) | (13 | ) | (13 | ) | (13 | ) | |||||||||||||||||
2/15 - 2/15 | — | — | — | — | 24,461 | 4.09 | (11 | ) | (11 | ) | (11 | ) | (11 | ) | |||||||||||||||||
3/15 - 3/15 | — | — | — | — | 26,443 | 4.09 | (9 | ) | (9 | ) | (9 | ) | (9 | ) | |||||||||||||||||
7/14 - 7/14 | 29,944 | 87.85 | (519 | ) | (519 | ) | 20,112 | 4.19 | (4 | ) | (4 | ) | (523 | ) | (523 | ) | |||||||||||||||
8/14 - 8/14 | 29,068 | 87.85 | (476 | ) | (476 | ) | 39,283 | 4.19 | (11 | ) | (11 | ) | (487 | ) | (487 | ) | |||||||||||||||
9/14 - 9/14 | 23,498 | 87.85 | (361 | ) | (361 | ) | 34,246 | 4.19 | (9 | ) | (9 | ) | (370 | ) | (370 | ) | |||||||||||||||
10/14 -10/14 | 25,026 | 87.85 | (359 | ) | (359 | ) | 29,753 | 4.19 | (7 | ) | (7 | ) | (366 | ) | (366 | ) | |||||||||||||||
11/14 - 11/14 | 20,000 | 87.85 | (270 | ) | (270 | ) | 28,635 | 4.19 | (8 | ) | (8 | ) | (278 | ) | (278 | ) | |||||||||||||||
12/14 -12/14 | 31,000 | 87.85 | (389 | ) | (389 | ) | 27,081 | 4.19 | (9 | ) | (9 | ) | (398 | ) | (398 | ) | |||||||||||||||
1/15 - 1/15 | — | — | — | — | 34,114 | 4.19 | (13 | ) | (13 | ) | (13 | ) | (13 | ) | |||||||||||||||||
2/15 - 2/15 | — | — | — | — | 27,838 | 4.19 | (10 | ) | (10 | ) | (10 | ) | (10 | ) | |||||||||||||||||
3/15 - 3/15 | — | — | — | — | 24,461 | 4.19 | (6 | ) | (6 | ) | (6 | ) | (6 | ) | |||||||||||||||||
7/14 - 7/14 | 30,279 | 100.72 | (222 | ) | (222 | ) | 245,330 | 4.47 | 17 | 17 | (205 | ) | (205 | ) | |||||||||||||||||
8/14 - 8/14 | 29,835 | 100.72 | (189 | ) | (189 | ) | 223,294 | 4.47 | 2 | 2 | (187 | ) | (187 | ) | |||||||||||||||||
9/14 - 9/14 | 32,336 | 100.72 | (171 | ) | (171 | ) | 207,094 | 4.47 | 6 | 6 | (165 | ) | (165 | ) | |||||||||||||||||
10/14 - 10/14 | 31,438 | 100.72 | (136 | ) | (136 | ) | 202,612 | 4.47 | 7 | 7 | (129 | ) | (129 | ) | |||||||||||||||||
11/14 - 11/14 | 30,808 | 100.72 | (111 | ) | (111 | ) | 186,296 | 4.47 | 1 | 1 | (110 | ) | (110 | ) | |||||||||||||||||
12/14 - 12/14 | 16,382 | 100.72 | (52 | ) | (52 | ) | 219,770 | 4.47 | (13 | ) | (13 | ) | (65 | ) | (65 | ) | |||||||||||||||
1/15 - 1/15 | — | — | — | — | 94,748 | 4.47 | (10 | ) | (10 | ) | (10 | ) | (10 | ) | |||||||||||||||||
2/15 - 2/15 | — | — | — | — | 104,401 | 4.47 | (8 | ) | (8 | ) | (8 | ) | (8 | ) | |||||||||||||||||
3/15 - 3/15 | — | — | — | — | 105,796 | 4.47 | 1 | 1 | 1 | 1 | |||||||||||||||||||||
(7,932 | ) | (7,932 | ) | (176 | ) | (176 | ) | (8,108 | ) | (8,108 | ) | ||||||||||||||||||||
Fair Values, on a Gross Basis, of Derivatives Not Designated as Hedging Instruments Recorded in the Consolidated Balance Sheet | ' | ||||||||||||||||||||||||||||||
The fair values of derivative instruments in our consolidated balance sheets were as follows (in thousands) (unaudited): | |||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset (Liability) Derivatives Total | |||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments under Accounting Guidance | Balance Sheet | Fair Value at | Balance Sheet | Fair Value at | Balance Sheet | Fair Value at | |||||||||||||||||||||||||
Location | June 30, | Location | June 30, | Location | June 30, | ||||||||||||||||||||||||||
2014 | 2014 | 2014 | |||||||||||||||||||||||||||||
Commodity Contracts | Derivative financial instruments | Derivative financial | Derivative financial | ||||||||||||||||||||||||||||
instruments | instruments | ||||||||||||||||||||||||||||||
Current | $ | 34 | Current | $ | (8,142 | ) | Current | $ | (8,108 | ) | |||||||||||||||||||||
Non-current | — | Non-current | — | Non-current | — | ||||||||||||||||||||||||||
Total derivative instruments | $ | 34 | $ | (8,142 | ) | $ | (8,108 | ) | |||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset (Liability) Derivatives Total | |||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging | Balance Sheet | Fair Value at | Balance Sheet | Fair Value at | Balance Sheet | Fair Value at | |||||||||||||||||||||||||
Instruments under Accounting Guidance | Location | December 31, | Location | December 31, | Location | December 31, | |||||||||||||||||||||||||
2013 | 2013 | 2013 | |||||||||||||||||||||||||||||
Commodity Contracts | Derivative financial | Derivative financial | Derivative financial | ||||||||||||||||||||||||||||
instruments | instruments | instruments | |||||||||||||||||||||||||||||
Current | $ | 1,370 | Current | $ | (9,828 | ) | Current | $ | (8,458 | ) | |||||||||||||||||||||
Non-current | — | Non-current | (31 | ) | Non-current | (31 | ) | ||||||||||||||||||||||||
Total derivative instruments | $ | 1,370 | $ | (9,859 | ) | $ | (8,489 | ) | |||||||||||||||||||||||
Fair Values, on a Gross Basis, of Derivatives Not Designated as Hedging Instruments Recorded in the Statement of Operations | ' | ||||||||||||||||||||||||||||||
The effect of derivate instruments on our consolidated statements of operations was as follows (in thousands) (unaudited): | |||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments under Accounting Guidance | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||
Statements of Operations Location | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||
Commodity Contracts | Realized (loss) gain on derivative financial instruments | $ | (4,366 | ) | $ | (187 | ) | $ | (8,858 | ) | $ | 152 | |||||||||||||||||||
Commodity Contracts | Unrealized (loss) gain on derivative financial instruments | (3 | ) | 5,383 | 381 | (846 | ) | ||||||||||||||||||||||||
Total derivative instruments | $ | (4,369 | ) | $ | 5,196 | $ | (8,477 | ) | $ | (694 | ) | ||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Assets and Liabilities by Level within Fair Value Hierarchy Table | ' | |||||||||||||||
The following tables present information about our assets and liabilities measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 and indicate the fair value hierarchy of the valuation techniques utilized by us to determine such fair value (in thousands) (unaudited): | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
at June 30, 2014 | ||||||||||||||||
Using Fair Value Hierarchy | ||||||||||||||||
Fair Value as of | Level 1 | Level 2 | Level 3 | |||||||||||||
30-Jun-14 | ||||||||||||||||
Assets | ||||||||||||||||
Oil and Natural Gas Derivatives | $ | 34 | $ | — | 34 | $ | — | |||||||||
$ | 34 | $ | — | $ | 34 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Oil and Natural Gas Derivatives | $ | (8,142 | ) | $ | — | $ | (8,142 | ) | $ | — | ||||||
$ | (8,142 | ) | $ | — | $ | (8,142 | ) | $ | — | |||||||
Fair Value Measurements | ||||||||||||||||
at December 31, 2013 | ||||||||||||||||
Using Fair Value Hierarchy | ||||||||||||||||
Fair Value as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2013 | ||||||||||||||||
Assets | ||||||||||||||||
Oil and Natural Gas Derivatives | $ | 1,370 | $ | — | $ | 1,370 | $ | — | ||||||||
$ | 1,370 | $ | — | $ | 1,370 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Oil and Natural Gas Derivatives | $ | (9,859 | ) | $ | — | $ | (9,859 | ) | $ | — | ||||||
$ | (9,859 | ) | $ | — | $ | (9,859 | ) | $ | — | |||||||
DEBT_AND_NOTES_PAYABLE_Tables
DEBT AND NOTES PAYABLE (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt and Notes Payable | ' | |||||||
Our debt and notes payable are summarized as follows: | ||||||||
June 30, | 31-Dec-13 | |||||||
2014 | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Senior Secured Revolving Credit Facility | $ | — | $ | 34,500 | ||||
13.75% Senior Secured Notes, net of discount | 149,529 | 149,383 | ||||||
AFCO Credit Corporation-insurance note payable | — | — | ||||||
Other debt | 790 | 303 | ||||||
Total debt | 150,319 | 184,186 | ||||||
Less: current portion | (759 | ) | (257 | ) | ||||
Total long-term debt | $ | 149,560 | $ | 183,929 | ||||
Scheduled Maturities of Principal Amounts of Debt Obligations | ' | |||||||
The amounts of required principal payments based on our outstanding debt amounts as of June 30, 2014, were as follows: | ||||||||
Period Ending June 30, | (in thousands) | |||||||
2015 | $ | 760 | ||||||
2016 | 150,030 | |||||||
2017 | — | |||||||
150,790 | ||||||||
Unamortized discount on 13.75% Senior Secured Notes | (471 | ) | ||||||
Total debt | $ | 150,319 | ||||||
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future Minimum Lease Payments Table | ' | |||
Approximate future minimum lease payments for operating leases at June 30, 2014 were as follows: | ||||
Period Ending June 30, | (in thousands) | |||
2015 | $ | 3,973 | ||
2016 | 2,072 | |||
2017 | 1,808 | |||
2018 | 1,620 | |||
2019 | 1,530 | |||
Thereafter | 2,326 | |||
$ | 13,329 | |||
LIQUIDITY_RISKS_AND_UNCERTAINT1
LIQUIDITY RISKS AND UNCERTAINTIES (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Risks and Uncertainties [Abstract] | ' |
Working capital deficit | ($110) |
Oil_and_Gas_Properties_Capital
Oil and Gas Properties - Capitalized Costs Related to Oil and Gas Properties (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Proved properties | $406,828 | $490,109 |
Accumulated depreciation, depletion, amortization and impairment | -253,174 | -293,973 |
Oil and gas properties, net | $153,654 | $196,136 |
Oil_and_Gas_Properties_Schedul
Oil and Gas Properties - Schedules of Change to Our Asset Retirement Obligations (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Movement in Property, Plant and Equipment [Roll Forward] | ' | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | $276,732 | ' | ' |
Liabilities relieved due to sale of properties | ' | ' | -18,204 | ' | ' |
Liabilities settled | ' | ' | -10,676 | ' | ' |
Accretion expense | 1,909 | 7,569 | 2,986 | 15,093 | ' |
Balance at June 30, 2014 | 250,838 | ' | 250,838 | ' | ' |
Less: current portion | -26,746 | ' | -26,746 | ' | -43,109 |
Total Long-Term Asset Retirement Obligations | $224,092 | ' | $224,092 | ' | $233,623 |
ACQUISITIONS_AND_DIVESTITURES_1
ACQUISITIONS AND DIVESTITURES Acquisitions and Divestitures - Additional Information (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 13, 2014 | Mar. 26, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Fields | Fields | ||||||
field | |||||||
Business Combinations [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Number of operated fields sold | 1 | ' | ' | ' | ' | ' | ' |
Number of non-operated fields sold | 15 | ' | ' | ' | ' | ' | ' |
Proceeds from sale of oil fields | $50,000,000 | $52,500,000 | ' | ' | ' | $45,606,000 | $52,580,000 |
Gain (Loss) on disposition of oil and gas property | ' | ' | -4,069,000 | 34,600,000 | -1,984,000 | 34,551,000 | 35,791,000 |
Gain on sale of fields | ' | ' | ' | ' | ' | ' | $35,800,000 |
Number of fields sold to Renaissance | ' | 4 | ' | ' | ' | ' | ' |
Derivative_Instruments_Commodi
Derivative Instruments - Commodity Derivative Instruments (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Derivative [Line Items] | ' |
Asset (Liability) | ($8,108) |
Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -7,932 |
Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -176 |
7/14 - 12/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -3,340 |
Fair Value Gain (Loss) | -3,340 |
7/14 - 12/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 15,000 |
Contract Price ($/MMBtu) | 65 |
Asset (Liability) | -3,340 |
Fair Value Gain (Loss) | -3,340 |
7/14 - 12/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 0 |
Contract Price ($/MMBtu) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
7/14 - 7/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -206 |
Fair Value Gain (Loss) | -206 |
7/14 - 7/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 11,845 |
Contract Price ($/MMBtu) | 88.8 |
Asset (Liability) | -194 |
Fair Value Gain (Loss) | -194 |
7/14 - 7/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 39,283 |
Contract Price ($/MMBtu) | 4.09 |
Asset (Liability) | -12 |
Fair Value Gain (Loss) | -12 |
8/14 - 8/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -216 |
Fair Value Gain (Loss) | -216 |
8/14 - 8/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 13,165 |
Contract Price ($/MMBtu) | 88.8 |
Asset (Liability) | -203 |
Fair Value Gain (Loss) | -203 |
8/14 - 8/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 34,246 |
Contract Price ($/MMBtu) | 4.09 |
Asset (Liability) | -13 |
Fair Value Gain (Loss) | -13 |
9/14 - 9/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -245 |
Fair Value Gain (Loss) | -245 |
9/14 - 9/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 16,235 |
Contract Price ($/MMBtu) | 88.8 |
Asset (Liability) | -235 |
Fair Value Gain (Loss) | -235 |
9/14 - 9/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 29,753 |
Contract Price ($/MMBtu) | 4.09 |
Asset (Liability) | -10 |
Fair Value Gain (Loss) | -10 |
10/14 - 10/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -219 |
Fair Value Gain (Loss) | -219 |
10/14 - 10/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 15,605 |
Contract Price ($/MMBtu) | 88.8 |
Asset (Liability) | -209 |
Fair Value Gain (Loss) | -209 |
10/14 - 10/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 28,635 |
Contract Price ($/MMBtu) | 4.09 |
Asset (Liability) | -10 |
Fair Value Gain (Loss) | -10 |
11/14 - 11/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -243 |
Fair Value Gain (Loss) | -243 |
11/14 - 11/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 18,525 |
Contract Price ($/MMBtu) | 88.8 |
Asset (Liability) | -233 |
Fair Value Gain (Loss) | -233 |
11/14 - 11/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 27,081 |
Contract Price ($/MMBtu) | 4.09 |
Asset (Liability) | -10 |
Fair Value Gain (Loss) | -10 |
12/14 - 12/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -277 |
Fair Value Gain (Loss) | -277 |
12/14 - 12/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 22,526 |
Contract Price ($/MMBtu) | 88.8 |
Asset (Liability) | -263 |
Fair Value Gain (Loss) | -263 |
12/14 - 12/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 34,114 |
Contract Price ($/MMBtu) | 4.09 |
Asset (Liability) | -14 |
Fair Value Gain (Loss) | -14 |
1/15 - 1/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -13 |
Fair Value Gain (Loss) | -13 |
1/15 - 1/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 0 |
Contract Price ($/MMBtu) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
1/15 - 1/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 27,838 |
Contract Price ($/MMBtu) | 4.09 |
Asset (Liability) | -13 |
Fair Value Gain (Loss) | -13 |
2/15 - 2/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -11 |
Fair Value Gain (Loss) | -11 |
2/15 - 2/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 0 |
Contract Price ($/MMBtu) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
2/15 - 2/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 24,461 |
Contract Price ($/MMBtu) | 4.09 |
Asset (Liability) | -11 |
Fair Value Gain (Loss) | -11 |
3/15 - 3/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -9 |
Fair Value Gain (Loss) | -9 |
3/15 - 3/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 0 |
Contract Price ($/MMBtu) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
3/15 - 3/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 26,443 |
Contract Price ($/MMBtu) | 4.09 |
Asset (Liability) | -9 |
Fair Value Gain (Loss) | -9 |
7/14 - 7/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -523 |
Fair Value Gain (Loss) | -523 |
7/14 - 7/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 29,944 |
Contract Price ($/MMBtu) | 87.85 |
Asset (Liability) | -519 |
Fair Value Gain (Loss) | -519 |
7/14 - 7/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 20,112 |
Contract Price ($/MMBtu) | 4.19 |
Asset (Liability) | -4 |
Fair Value Gain (Loss) | -4 |
8/14 - 8/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -487 |
Fair Value Gain (Loss) | -487 |
8/14 - 8/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 29,068 |
Contract Price ($/MMBtu) | 87.85 |
Asset (Liability) | -476 |
Fair Value Gain (Loss) | -476 |
8/14 - 8/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 39,283 |
Contract Price ($/MMBtu) | 4.19 |
Asset (Liability) | -11 |
Fair Value Gain (Loss) | -11 |
9/14 - 9/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -370 |
Fair Value Gain (Loss) | -370 |
9/14 - 9/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 23,498 |
Contract Price ($/MMBtu) | 87.85 |
Asset (Liability) | -361 |
Fair Value Gain (Loss) | -361 |
9/14 - 9/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 34,246 |
Contract Price ($/MMBtu) | 4.19 |
Asset (Liability) | -9 |
Fair Value Gain (Loss) | -9 |
10/14 -10/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -366 |
Fair Value Gain (Loss) | -366 |
10/14 -10/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 25,026 |
Contract Price ($/MMBtu) | 87.85 |
Asset (Liability) | -359 |
Fair Value Gain (Loss) | -359 |
10/14 -10/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 29,753 |
Contract Price ($/MMBtu) | 4.19 |
Asset (Liability) | -7 |
Fair Value Gain (Loss) | -7 |
11/14 - 11/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -278 |
Fair Value Gain (Loss) | -278 |
11/14 - 11/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 20,000 |
Contract Price ($/MMBtu) | 87.85 |
Asset (Liability) | -270 |
Fair Value Gain (Loss) | -270 |
11/14 - 11/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 28,635 |
Contract Price ($/MMBtu) | 4.19 |
Asset (Liability) | -8 |
Fair Value Gain (Loss) | -8 |
12/14 -12/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -398 |
Fair Value Gain (Loss) | -398 |
12/14 -12/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 31,000 |
Contract Price ($/MMBtu) | 87.85 |
Asset (Liability) | -389 |
Fair Value Gain (Loss) | -389 |
12/14 -12/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 27,081 |
Contract Price ($/MMBtu) | 4.19 |
Asset (Liability) | -9 |
Fair Value Gain (Loss) | -9 |
1/15 - 1/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -13 |
Fair Value Gain (Loss) | -13 |
1/15 - 1/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 0 |
Contract Price ($/MMBtu) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
1/15 - 1/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 34,114 |
Contract Price ($/MMBtu) | 4.19 |
Asset (Liability) | -13 |
Fair Value Gain (Loss) | -13 |
2/15 - 2/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -10 |
Fair Value Gain (Loss) | -10 |
2/15 - 2/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 0 |
Contract Price ($/MMBtu) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
2/15 - 2/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 27,838 |
Contract Price ($/MMBtu) | 4.19 |
Asset (Liability) | -10 |
Fair Value Gain (Loss) | -10 |
3/15 - 3/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -6 |
Fair Value Gain (Loss) | -6 |
3/15 - 3/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 0 |
Contract Price ($/MMBtu) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
3/15 - 3/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 24,461 |
Contract Price ($/MMBtu) | 4.19 |
Asset (Liability) | -6 |
Fair Value Gain (Loss) | -6 |
7/14 - 7/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -205 |
Fair Value Gain (Loss) | -205 |
7/14 - 7/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 30,279 |
Contract Price ($/MMBtu) | 101 |
Asset (Liability) | -222 |
Fair Value Gain (Loss) | -222 |
7/14 - 7/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 245,330 |
Contract Price ($/MMBtu) | 4.47 |
Asset (Liability) | 17 |
Fair Value Gain (Loss) | 17 |
8/14 - 8/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -187 |
Fair Value Gain (Loss) | -187 |
8/14 - 8/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 29,835 |
Contract Price ($/MMBtu) | 101 |
Asset (Liability) | -189 |
Fair Value Gain (Loss) | -189 |
8/14 - 8/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 223,294 |
Contract Price ($/MMBtu) | 4.47 |
Asset (Liability) | 2 |
Fair Value Gain (Loss) | 2 |
9/14 - 9/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -165 |
Fair Value Gain (Loss) | -165 |
9/14 - 9/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 32,336 |
Contract Price ($/MMBtu) | 101 |
Asset (Liability) | -171 |
Fair Value Gain (Loss) | -171 |
9/14 - 9/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 207,094 |
Contract Price ($/MMBtu) | 4.47 |
Asset (Liability) | 6 |
Fair Value Gain (Loss) | 6 |
10/14 - 10/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -129 |
Fair Value Gain (Loss) | -129 |
10/14 - 10/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 31,438 |
Contract Price ($/MMBtu) | 101 |
Asset (Liability) | -136 |
Fair Value Gain (Loss) | -136 |
10/14 - 10/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 202,612 |
Contract Price ($/MMBtu) | 4.47 |
Asset (Liability) | 7 |
Fair Value Gain (Loss) | 7 |
11/14 - 11/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -110 |
Fair Value Gain (Loss) | -110 |
11/14 - 11/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 30,808 |
Contract Price ($/MMBtu) | 101 |
Asset (Liability) | -111 |
Fair Value Gain (Loss) | -111 |
11/14 - 11/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 186,296 |
Contract Price ($/MMBtu) | 4.47 |
Asset (Liability) | 1 |
Fair Value Gain (Loss) | 1 |
12/14 - 12/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -65 |
Fair Value Gain (Loss) | -65 |
12/14 - 12/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 16,382 |
Contract Price ($/MMBtu) | 101 |
Asset (Liability) | -52 |
Fair Value Gain (Loss) | -52 |
12/14 - 12/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 219,770 |
Contract Price ($/MMBtu) | 4.47 |
Asset (Liability) | -13 |
Fair Value Gain (Loss) | -13 |
1/15 - 1/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -10 |
Fair Value Gain (Loss) | -10 |
1/15 - 1/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 0 |
Contract Price ($/MMBtu) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
1/15 - 1/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 94,748 |
Contract Price ($/MMBtu) | 4.47 |
Asset (Liability) | -10 |
Fair Value Gain (Loss) | -10 |
2/15 - 2/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -8 |
Fair Value Gain (Loss) | -8 |
2/15 - 2/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 0 |
Contract Price ($/MMBtu) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
2/15 - 2/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 104,401 |
Contract Price ($/MMBtu) | 4.47 |
Asset (Liability) | -8 |
Fair Value Gain (Loss) | -8 |
3/15 - 3/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | 1 |
Fair Value Gain (Loss) | 1 |
3/15 - 3/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Volume | 0 |
Contract Price ($/MMBtu) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
3/15 - 3/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Volume | 105,796 |
Contract Price ($/MMBtu) | 4.47 |
Asset (Liability) | 1 |
Fair Value Gain (Loss) | 1 |
Fair Value [Member] | ' |
Derivative [Line Items] | ' |
Fair Value Gain (Loss) | -8,108 |
Fair Value [Member] | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Fair Value Gain (Loss) | -7,932 |
Fair Value [Member] | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Fair Value Gain (Loss) | ($176) |
Derivative_Instruments_Fair_Va
Derivative Instruments - Fair Values, on a Gross Basis, of Derivatives Not Designated as Hedging Instruments Recorded in the Consolidated Balance Sheet (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | $34 | $1,370 |
Liability Derivatives | -8,142 | -9,859 |
Commodity Contracts [Member] | Derivatives Not Designated as Hedging Instruments under Accounting Guidance [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset (Liability) Derivatives Total | -8,108 | -8,489 |
Commodity Contracts [Member] | Derivatives Not Designated as Hedging Instruments under Accounting Guidance [Member] | Asset (Liability) Derivatives, Current [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset (Liability) Derivatives Total | -8,108 | -8,458 |
Commodity Contracts [Member] | Derivatives Not Designated as Hedging Instruments under Accounting Guidance [Member] | Asset (Liability) Derivatives, Non-current [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset (Liability) Derivatives Total | 0 | -31 |
Commodity Contracts [Member] | Derivatives Not Designated as Hedging Instruments under Accounting Guidance [Member] | Current Assets Derivatives [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 34 | 1,370 |
Commodity Contracts [Member] | Derivatives Not Designated as Hedging Instruments under Accounting Guidance [Member] | Current Liability Derivatives [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | -8,142 | -9,828 |
Commodity Contracts [Member] | Derivatives Not Designated as Hedging Instruments under Accounting Guidance [Member] | Non-current Assets Derivatives [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 0 | 0 |
Commodity Contracts [Member] | Derivatives Not Designated as Hedging Instruments under Accounting Guidance [Member] | Non-current Liability Derivatives [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 0 | -31 |
Commodity Contracts [Member] | Derivatives Not Designated as Hedging Instruments under Accounting Guidance [Member] | Assets Derivatives [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 34 | 1,370 |
Commodity Contracts [Member] | Derivatives Not Designated as Hedging Instruments under Accounting Guidance [Member] | Liability Derivatives [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | ($8,142) | ($9,859) |
Derivative_Instruments_Fair_Va1
Derivative Instruments - Fair Values, on a Gross Basis, of Derivatives Not Designated as Hedging Instruments Recorded in the Statement of Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' |
Realized (loss) gain on derivative financial instruments | ($4,366) | ($187) | ($8,858) | $152 |
Unrealized (loss) gain on derivative financial instruments | -3 | 5,383 | 381 | -846 |
Total gain (loss) on derivative financial instruments | ($4,369) | $5,196 | ($8,477) | ($694) |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value of Assets and Liabilities by Level within Fair Value Hierarchy Table (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value of Derivative Assets | $34 | $1,370 |
Fair Value of Derivative Liability | -8,142 | -9,859 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value of Derivative Assets | 0 | 0 |
Fair Value of Derivative Liability | 0 | 0 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value of Derivative Assets | 34 | 1,370 |
Fair Value of Derivative Liability | -8,142 | -9,859 |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value of Derivative Assets | 0 | 0 |
Fair Value of Derivative Liability | 0 | 0 |
Oil and Natural Gas Derivatives [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value of Derivative Assets | 34 | 1,370 |
Fair Value of Derivative Liability | -8,142 | -9,859 |
Oil and Natural Gas Derivatives [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value of Derivative Assets | 0 | 0 |
Fair Value of Derivative Liability | 0 | 0 |
Oil and Natural Gas Derivatives [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value of Derivative Assets | 34 | 1,370 |
Fair Value of Derivative Liability | -8,142 | -9,859 |
Oil and Natural Gas Derivatives [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value of Derivative Assets | 0 | 0 |
Fair Value of Derivative Liability | $0 | $0 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Debt, fair value | $149,500,000 | ' | $149,500,000 | ' | ' |
Oil and gas properties, fair value | 153,654,000 | ' | 153,654,000 | ' | 196,136,000 |
Impairment charge | 2,161,000 | 22,414,000 | 3,074,000 | 55,377,000 | ' |
Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Oil and gas properties with a carrying value | 156,800,000 | 279,400,000 | 156,800,000 | 279,400,000 | ' |
Oil and gas properties, fair value | 153,700,000 | 224,100,000 | 153,700,000 | 224,100,000 | ' |
Impairment charge | $2,200,000 | $22,400,000 | $3,100,000 | $55,300,000 | ' |
Debt_and_Notes_Payable_Debt_an
Debt and Notes Payable - Debt and Notes Payable (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total debt | $150,319 | $184,186 |
Less: current portion | -759 | -257 |
Total long-term debt | 149,560 | 183,929 |
Senior Secured Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 0 | 34,500 |
13.75% Senior Secured Notes, net of discount [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 149,529 | 149,383 |
AFCO Credit Corporation-insurance note payable [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 0 | 0 |
Other debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | $790 | $303 |
Debt_and_Notes_Payable_Additio
Debt and Notes Payable - Additional Information (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | 23-May-11 | Jun. 30, 2014 | Nov. 23, 2010 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 |
13.75% Senior Secured Notes, net of discount [Member] | 13.75% Senior Secured Notes, net of discount [Member] | 13.75% Senior Secured Notes, net of discount [Member] | Secured Letter of Credit Facility [Member] | Thirteen Point Seven Five Percent Senior Secured Notes [Member] | Thirteen Point Seven Five Percent Senior Secured Notes [Member] | Thirteen Point Seven Five Percent Senior Secured Notes [Member] | Thirteen Point Seven Five Percent Senior Secured Notes [Member] | |||
Letter of Credit [Member] | 13.75% Senior Secured Notes, net of discount [Member] | 13.75% Senior Secured Notes, net of discount [Member] | Minimum [Member] | Maximum [Member] | ||||||
13.75% Senior Secured Notes, net of discount [Member] | 13.75% Senior Secured Notes, net of discount [Member] | |||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' |
Debt instrument face value | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' |
Interest rate on notes/Fee percentage on letter of credit | ' | ' | ' | ' | 13.75% | ' | ' | ' | ' | ' |
Issue Price Of 13.75% Senior secured notes debt instruments as percentage of face amount | ' | ' | ' | ' | 99.11% | ' | ' | ' | ' | ' |
Credit facility date in original agreement | ' | ' | ' | 1-Dec-15 | ' | ' | ' | ' | ' | ' |
Long-term Debt | ' | ' | ' | 149,600,000 | ' | ' | ' | ' | ' | ' |
Unamortized discount on 13.75% Senior Secured Notes | 471,000 | 617,000 | ' | 500,000 | ' | ' | ' | ' | ' | ' |
Underwriting and debt issue costs capitalized | ' | ' | ' | 7,200,000 | ' | ' | ' | ' | ' | ' |
Repurchase percentage for 13.75% Senior Secured Notes for a Change of Control | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' |
Percentage of the 13.75% Senior Secured Notes redeemable until December 1, 2013 | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' |
Redeemable amount as a percentage of principal amount | ' | ' | ' | 110.00% | ' | ' | ' | ' | ' | ' |
Optional redemption repurchase percentage for the 13.75% Senior Secured Notes from December 1, 2013 until December 1, 2014 | ' | ' | ' | 106.88% | ' | ' | ' | ' | ' | ' |
Consent solicitation fee | ' | ' | 4,500,000 | ' | ' | ' | ' | ' | ' | ' |
Contribution from our majority equity holder | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' |
Repurchase percentage for 13.75% Senior Secured Notes | ' | ' | 103.00% | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1.4 |
Amended Capital Expenditure Maximum Limit Value | ' | ' | ' | ' | ' | ' | ' | $60,000,000 | ' | ' |
Maximum percent limit on capital expenditure covenant | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' |
Debt_and_Notes_Payable_Schedul
Debt and Notes Payable - Scheduled Maturities of Principal Amounts of Debt Obligations (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2015 | $760 | ' |
2016 | 150,030 | ' |
2017 | 0 | ' |
Notes and loans payable | 150,790 | ' |
Unamortized discount on 13.75% Senior Secured Notes | -471 | -617 |
Total debt | $150,319 | $184,186 |
Members_Deficit_Additional_Inf
Members Deficit - Additional Information (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 6 Months Ended | 3 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Feb. 12, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 24, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Feb. 12, 2013 | Mar. 31, 2013 |
Class E units [Member] | Class D Preferred Units [Member] | PPBE [Member] | AQR Diversified Arbitrage Fund [Member] | AQR Diversified Arbitrage Fund [Member] | Capital Unit Class B [Member] | Capital Unit Class B [Member] | Minimum [Member] | ||
Class E units [Member] | Class E units [Member] | Preferred Units, Class E [Member] | PPBE [Member] | PPVA (Equity) [Member] | Class E units [Member] | ||||
Class B units [Member] | |||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional units issued | ' | ' | ' | ' | ' | ' | 3,800,000 | 1,131,458 | ' |
Temporary Units Issued | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' |
Capital contribution | ' | ' | ' | $50 | ' | ' | ' | ' | ' |
Class D Units Exchanged for Class E Units | ' | 43,000,000 | ' | ' | ' | ' | ' | ' | ' |
Value of Class D units exchanged for Class E units | ' | ' | 30 | ' | ' | ' | ' | ' | ' |
Paid-in-kind dividends converted to Class E stock | ' | ' | 13 | ' | ' | 8.2 | ' | ' | ' |
Rate of accruing dividends payable in kind | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% |
Payments for Repurchase of Preferred Units | ' | ' | ' | ' | $14 | ' | ' | ' | ' |
Stock Split ratio | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet1
Commitments and Contingencies - Additional Information (Details) (USD $) | 6 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2014 | Nov. 30, 2010 | Jun. 30, 2014 | Dec. 19, 2012 | Jun. 30, 2014 | Jun. 01, 2011 | Dec. 31, 2013 | Jan. 31, 2013 | Apr. 16, 2014 | Nov. 16, 2012 | |
W&T Total [Member] | W&T Operating Properties [Member] | W&T Operating Properties [Member] | W&T Non-operating Properties [Member] | ARGO [Member] | Maritech [Member] | Merit [Member] | Merit [Member] | Purported Derivative Action [Member] | Vistar Oil Texas LLC [Member] | Damage from Fire, Explosion or Other Hazard [Member] | |
Installment | investor | mi | |||||||||
worker | |||||||||||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distance from Specific Area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 |
Escrow to be funded | $63,800,000 | $32,600,000 | ' | $31,200,000 | ' | $13,100,000 | ' | $60,000,000 | ' | ' | ' |
Number of monthly installments to be deposited in escrow account | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' |
Escrow paid/funded | ' | ' | 32,600,000 | 19,500,000 | ' | ' | ' | ' | ' | ' | ' |
Remaining balance of escrow to be paid | ' | ' | ' | 11,700,000 | ' | ' | ' | ' | ' | ' | ' |
Payments for surety bonds | ' | ' | ' | ' | ' | ' | ' | 33,000,000 | ' | ' | ' |
Issuance of performance bonds | ' | ' | ' | ' | 32,600,000 | ' | ' | ' | ' | ' | ' |
Number of victims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 |
Number of plaintiffs | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' |
Damages sought | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,500,000 | ' |
Funding in dispute | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,350,000 | ' |
Recovered_Sheet2
Commitments and Contingencies - Future Minimum Lease Payments Table (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2015 | $3,973 |
2016 | 2,072 |
2017 | 1,808 |
2018 | 1,620 |
2019 | 1,530 |
Thereafter | 2,326 |
Operating lease, total | $13,329 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Details) (USD $) | 0 Months Ended | 0 Months Ended | ||||
Aug. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | 28-May-13 | Jun. 30, 2014 | 28-May-13 | |
Pea and Eigh Company, LLC [Member] | Pea and Eigh Company, LLC [Member] | Pea and Eigh Company, LLC [Member] | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' |
Receivables from Black Elk Energy, LLC | ' | $273,430 | $273,430 | ' | ' | ' |
Related Party Transaction, Commitment Fee | 300,000 | ' | ' | ' | ' | ' |
Lease monthly installments | ' | ' | ' | ' | ' | 35,000 |
Lease maturing | ' | ' | ' | 31-Dec-13 | ' | ' |
Option to purchase equipment | ' | ' | ' | ' | ' | 1,500,000 |
Restricted cash for additional equipment purchased | ' | ' | ' | ' | $600,000 | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | |||
Mar. 13, 2014 | Mar. 26, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 16, 2014 | Jul. 16, 2014 | Jun. 30, 2014 | Jul. 16, 2014 | |
Fields | Fields | Subsequent Event [Member] | Subsequent Event [Member] | Thirteen Point Seven Five Percent Senior Secured Notes [Member] | Thirteen Point Seven Five Percent Senior Secured Notes [Member] | |||
field | field | 13.75% Senior Secured Notes, net of discount [Member] | 13.75% Senior Secured Notes, net of discount [Member] | |||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of fields sold | ' | 4 | ' | ' | 9 | ' | ' | ' |
Number of operated fields sold | 1 | ' | ' | ' | 7 | ' | ' | ' |
Number of non-operated fields sold | 15 | ' | ' | ' | 2 | ' | ' | ' |
Proceeds from sale of oil fields | $50,000,000 | $52,500,000 | $45,606,000 | $52,580,000 | $170,000,000 | ' | ' | ' |
Amount to be paid for every $1,000 of debt repurchased, including accrued and unpaid interest | ' | ' | ' | ' | ' | 1,000 | ' | ' |
Minimum aggregate proceeds from Renaissance Sale to trigger obligation for repurchase of notes | ' | ' | ' | ' | $100,000,000 | ' | ' | ' |
Capital expenditure covenant to be removed | ' | ' | ' | ' | ' | ' | 30.00% | 30.00% |