Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||||
Sep. 30, 2014 | Nov. 19, 2014 | Nov. 19, 2014 | Nov. 19, 2014 | Nov. 19, 2014 | |
Common Class A | Common Class B | Common Class C | Common Class E | ||
Document Information [Line Items] | ' | ' | ' | ' | ' |
Entity Registrant Name | 'Black Elk Energy Offshore Operations, LLC | ' | ' | ' | ' |
Trading Symbol | 'CK0001518909 | ' | ' | ' | ' |
Entity Central Index Key | '0001518909 | ' | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' | ' | ' |
Document Type | '10-Q | ' | ' | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 1,361,300 | 114,277,308.50 | 12,031,250 | 7,935,670 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $5,467 | $6,227 |
Restricted cash | 675 | 775 |
Accounts receivable, net of allowance for doubtful accounts of $826 and $811 at September 30, 2014 and December 31, 2013, respectively | 29,452 | 61,747 |
Due from affiliates | 273 | 273 |
Prepaid expenses and other current assets | 6,811 | 7,109 |
Current portion of escrow for abandonment costs | 25,872 | 21,976 |
Derivative assets | 270 | 1,370 |
TOTAL CURRENT ASSETS | 68,820 | 99,477 |
OIL AND GAS PROPERTIES, successful efforts method of accounting, net of accumulated depreciation, depletion, amortization and impairment of $217,526 and $293,973 at September 30, 2014 and December 31, 2013, respectively | 43,200 | 196,136 |
OTHER PROPERTY AND EQUIPMENT, net of accumulated depreciation of $6,112 and $5,350 at September 30, 2014 and December 31, 2013, respectively | 2,962 | 4,862 |
OTHER ASSETS | ' | ' |
Debt issue costs, net | 557 | 1,488 |
Asset retirement obligation escrow receivable | 20,348 | 20,348 |
Escrow for abandonment costs, net of current portion | 196,262 | 235,473 |
Other assets | 7,548 | 7,830 |
TOTAL OTHER ASSETS | 224,715 | 265,139 |
TOTAL ASSETS | 339,697 | 565,614 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable and accrued expenses | 96,366 | 155,880 |
Derivative liabilities | 1,179 | 9,828 |
Asset retirement obligations | 32,839 | 43,109 |
Current portion of debt and notes payable | 340 | 257 |
TOTAL CURRENT LIABILITIES | 130,724 | 209,074 |
LONG-TERM LIABILITIES | ' | ' |
Gas imbalance payable | 727 | 1,888 |
Derivative liabilities | 0 | 31 |
Asset retirement obligations, net of current portion | 162,661 | 233,623 |
Debt, net of current portion, net of unamortized discount of $398 and $617 at September 30, 2014 and December 31, 2013, respectively | 138,192 | 183,929 |
TOTAL LONG-TERM LIABILITIES | 301,580 | 419,471 |
TOTAL LIABILITIES | 432,304 | 628,545 |
CLASS E PREFERRED UNITS | 7,936 | 109,744 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
MEMBERSb DEFICIT | -100,543 | -172,675 |
TOTAL LIABILITIES AND MEMBERSb DEFICIT | $339,697 | $565,614 |
CONSOLIDATED_BALANCE_SHEETS_CO
CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEET (PARENTHETICALS) (USD $) | Sep. 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 | 217,526 | 293,973 |
Accumulated depreciation for other property and equipment | 6,112 | 5,350 |
Unamortized discount of debt | $398 | $617 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
REVENUES: | ' | ' | ' | ' |
Oil sales | $7,811 | $50,479 | $70,692 | $136,415 |
Natural gas sales | 4,718 | 12,600 | 26,192 | 40,046 |
Plant product sales | -101 | 1,457 | 3,032 | 5,831 |
Gain (loss) on derivative financial instruments | 4,883 | -7,868 | -3,593 | -8,562 |
Other revenues | 2,441 | 7,089 | 15,830 | 16,389 |
TOTAL REVENUES | 19,752 | 63,757 | 112,153 | 190,119 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Lease operating | 12,744 | 51,168 | 66,753 | 141,657 |
Workover | 1,431 | 1,028 | 2,050 | 7,312 |
Depreciation, depletion and amortization | 2,537 | 10,027 | 24,476 | 32,727 |
Impairment of oil and gas properties | 11,395 | 402 | 14,469 | 55,779 |
General and administrative | 8,901 | 9,621 | 21,630 | 28,250 |
Gain on involuntary conversion of asset | 0 | -7,194 | 0 | -17,827 |
Accretion of asset retirement obligations | 551 | 4,458 | 3,536 | 19,551 |
(Gain) loss on sale of assets | -98,526 | 424 | -133,077 | -35,367 |
Other operating expenses | 1,062 | 2,704 | 6,413 | 5,117 |
TOTAL OPERATING EXPENSES | -59,905 | 72,638 | 6,250 | 237,199 |
INCOME (LOSS) FROM OPERATIONS | 79,657 | -8,881 | 105,903 | -47,080 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
Interest income | 10 | 30 | 45 | 81 |
Miscellaneous expense | -1,312 | -2,674 | -5,778 | -7,620 |
Interest expense | -5,459 | -6,890 | -17,733 | -19,526 |
TOTAL OTHER EXPENSE, NET | -6,761 | -9,534 | -23,466 | -27,065 |
NET INCOME (LOSS) | 72,896 | -18,415 | 82,437 | -74,145 |
LESS: PREFERRED UNIT DIVIDENDS | 2,033 | 4,755 | 10,233 | 12,581 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON UNIT HOLDERS | $70,863 | ($23,170) | $72,204 | ($86,726) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | $82,437 | ($74,145) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ' | ' |
Depreciation, depletion, and amortization | 24,476 | 32,727 |
Impairment of oil and gas properties | 14,469 | 55,779 |
Accretion of asset retirement obligations | 3,536 | 19,551 |
Amortization of debt issue costs | 4,520 | 4,595 |
Accretion of debt discount | 219 | 195 |
Gain (loss) on derivative financial instruments | -3,593 | -8,562 |
Settlement of derivative financial instruments | -11,174 | -2,573 |
Gain on sale of assets | -133,077 | -35,367 |
Provision on doubtful accounts | 16 | 308 |
Gain on involuntary conversion of asset | 0 | -17,827 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 31,370 | -13,086 |
Escrow receivable, short term | -29,525 | 0 |
Due from affiliates, net | 0 | 74 |
Prepaid expenses and other assets | -3,290 | 16,440 |
Other assets | 310 | 464 |
Accounts payable and accrued liabilities | -36,290 | 74,560 |
Gas imbalance | -1,198 | -16 |
Settlement of asset retirement obligations | -17,717 | -41,512 |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | -67,325 | 28,729 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Additions to oil and gas properties | -11,150 | -112,719 |
Acquisition of oil and gas properties | 0 | -3,250 |
Sale of oil and gas properties | 170,698 | 65,741 |
Additions to property and equipment | -10 | -683 |
Cash assumed in consolidation of Freedom Well Services, LLC | 0 | 473 |
Proceeds received from insurance recovery | 0 | 23,837 |
Deposits | 0 | -9 |
Restricted cash | 100 | -694 |
Escrow payments, net | 5,817 | -23,394 |
Escrow released | 59,024 | 0 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 224,479 | -50,698 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds on short term notes | 2,818 | 348 |
Payments on short term notes | -2,758 | -3,827 |
Borrowing on bank debt | 0 | 23,168 |
Payments on bank debt | -45,933 | -40,168 |
Debt issuance costs | 0 | -2,249 |
Contributions from members | 0 | 50,000 |
Distributions to members | -112,041 | 0 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | -157,914 | 27,272 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -760 | 5,303 |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 6,227 | 1,383 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 5,467 | 6,686 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' |
Cash paid for interest | 10,983 | 11,773 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Asset retirement obligations relieved due to sale of properties | -67,051 | -22,999 |
Increase in asset retirement due to revaluation | 0 | 2,341 |
Paid-in-kind dividends on preferred equity and accrued distributions to members | $10,233 | $12,581 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 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 (loss) 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 inter-company 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.” We are evaluating the impact this standard will have on our consolidated financial statements and related disclosures. | |
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. | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The standard is effective for annual financial statement starting period ending December 15, 2016, with early adoption permitted. We are currently evaluating the provisions of ASU 2014-15 and assessing the impact, if any, it may have on our consolidated financial position, results of operations or cash flows. |
GOING_CONCERN_CONSIDERATION
GOING CONCERN CONSIDERATION | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
GOING CONCERN CONSIDERATION | ' |
GOING CONCERN CONSIDERATION | |
The consolidated financial statements have been prepared assuming the Company will continue as a going concern. As of September 30, 2014, the Company had a net working capital deficit of approximately $61.9 million and a members' deficit of approximately $100.5 million. The net working capital deficit at September 30, 2014 is primarily the result of the Company's accounts payable and accrued expenses of $96.3 million. Additionally, the Company’s 13.75% Senior Secured Notes will mature in December 2015 (see “Note 8 - Debt and Notes Payable” for further discussion). We cannot assure that the Company will generate sufficient cash flow from operations to service the remaining Notes. These conditions raise substantial doubt about the Company's ability to continue as a going concern. | |
Our primary cash flow for the first nine months of 2014 was from divestiture of assets (see “Note 5 - Acquisitions and Divestitures” for further discussion). 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 nine months of 2014. To increase liquidity, we continue to manage accounts payable, aggressively pursue accounts receivable and seek opportunities to sell non-core assets. | |
Our primary use of capital has been for 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. On August 15, 2014, the Company closed the sale of seven operated and one non-operated assets to Renaissance Offshore, LLC (the “Renaissance Sale”). The net proceeds of the Renaissance Sale were used primarily to fund our purchase of the Notes validly tendered and not withdrawn pursuant to the tender offer on July 16, 2014 and to re-purchase Series E preferred units. | |
The Company may continue to liquidate additional oil and natural gas properties to meet its liquidity needs; however, there is no certainty that this would generate the cash necessary to meet our obligation. Additionally, this could affect the Company’s long-term strategic plan and require the Company to liquidate certain oil and gas properties at an amount less than would normally be achieved if sold in the ordinary course of business (see “Note 3 - Liquidity, Risks and Uncertainties” for further discussion). | |
The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Please refer to Item1A. Risk Factors for detail discussions of our risk factors. |
LIQUIDITY_RISKS_AND_UNCERTAINT
LIQUIDITY RISKS AND UNCERTAINTIES | 9 Months Ended |
Sep. 30, 2014 | |
Risks and Uncertainties [Abstract] | ' |
LIQUIDITY RISKS AND UNCERTAINTIES | ' |
LIQUIDITY, RISKS AND UNCERTAINTIES | |
The Company currently faces significant challenges with our cash flow and our need to pay for operating expenses, including our debt service obligations. The Company's cash position raises substantial doubt about the Company's ability to continue as a going concern. We will need to seek additional working capital through the sale of equity or assets and potentially refinance our debt in an effort to improve our liquidity position. | |
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. | |
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
OIL AND GAS PROPERTIES | 9 Months Ended | |||||||
Sep. 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: | ||||||||
September 30, | 31-Dec-13 | |||||||
2014 | ||||||||
(Unaudited) | ||||||||
(in thousands) | ||||||||
Proved properties | $ | 260,726 | $ | 490,109 | ||||
Accumulated depreciation, depletion, amortization and impairment | (217,526 | ) | (293,973 | ) | ||||
Oil and gas properties, net | $ | 43,200 | $ | 196,136 | ||||
The following table describes the changes to our asset retirement obligations (unaudited): | ||||||||
(in thousands) | ||||||||
Balance at December 31, 2013 | $ | 276,732 | ||||||
Liabilities settled | (17,717 | ) | ||||||
Liabilities relieved due to sale of properties | (67,051 | ) | ||||||
Accretion expense | 3,536 | |||||||
Balance at September 30, 2014 | 195,500 | |||||||
Less: current portion | (32,839 | ) | ||||||
Total Long-Term Asset Retirement Obligations | $ | 162,661 | ||||||
ACQUISITIONS_AND_DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 9 Months Ended |
Sep. 30, 2014 | |
Business Combinations [Abstract] | ' |
ACQUISITIONS AND DIVESTITURES | ' |
ACQUISITIONS AND DIVESTITURES | |
On August 15, 2014, the Company closed the sale of seven operated and one non-operated assets to Renaissance Offshore, LLC (the “Renaissance Sale”). After customary purchase price adjustments, the Company received $125.1 million in net proceeds from the Renaissance Sale. The assets sold in the Renaissance Sale represent a significant amount of the Company’s cash flow, proved reserves and production. Reflected in our September 30, 2014 consolidated financial statements is a preliminary gain of $98.5 million related to the Renaissance sale. The net proceeds of the Renaissance Sale was used primarily to fund our purchase of the Notes validly tendered and not withdrawn pursuant to the tender offer on August 13, 2014 and to re-purchase Series E preferred units. | |
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”). The Sale closed on March 17, 2014. Reflected in our September 30, 2014 consolidated financial statements is a preliminary gain of $34.5 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 September 30, 2013 consolidated financial statements is a gain of $35.8 million. |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS | ' | ||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS | |||||||||||||||||||||||||||||||||||||
We enter into hedging transactions with major financial institutions to reduce exposure to fluctuations in the price of oil and natural gas. We use financially settled crude oil and natural gas swaps. With a swap, the counterparty is required to make a payment to us if the settlement price for a settlement period is below the hedged price for the transaction, and we are required to make a payment to the counter-party if the settlement price for any settlement period is above the hedged price for the transaction. We elected not to designate any of our derivative contracts as qualifying hedges for financial reporting purposes, therefore all of the derivative instruments are categorized as standalone derivatives and are being marked-to-market with “Unrealized (loss) gain on derivative financial instruments” recorded in the consolidated statements of operations. | |||||||||||||||||||||||||||||||||||||
At September 30, 2014, we had the following contracts outstanding (Asset (Liability) and Fair Value Gain (Loss) (unaudited)): | |||||||||||||||||||||||||||||||||||||
Crude Oil | Natural Gas | Total | |||||||||||||||||||||||||||||||||||
Period | Monthly Volume | Contract | Asset | Fair Value | Monthly Volume | Contract | Asset | Fair Value | Asset | Fair Value | |||||||||||||||||||||||||||
(Bbls) | Price | (Liability) | Gain | (MMBtu) | Price | (Liability) | Gain | (Liability) | Gain | ||||||||||||||||||||||||||||
($/Bbl) | (Loss) | ($/MMBtu) | (Loss) | (Loss) | |||||||||||||||||||||||||||||||||
Swaps: | (in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||
10/14 - 12/14 | 15,000 | 65 | $ | (1,122 | ) | $ | (1,122 | ) | — | — | $ | — | $ | — | $ | (1,122 | ) | $ | (1,122 | ) | |||||||||||||||||
10/14 - 10/14 | 5,525 | 87.75 | (17 | ) | (17 | ) | 28,635 | 4.09 | 3 | 3 | (14 | ) | (14 | ) | |||||||||||||||||||||||
11/14 - 11/14 | 5,525 | 87.75 | (13 | ) | (13 | ) | 27,081 | 4.09 | (1 | ) | (1 | ) | (14 | ) | (14 | ) | |||||||||||||||||||||
12/14 - 12/14 | 5,525 | 87.75 | (10 | ) | (10 | ) | 34,114 | 4.09 | (3 | ) | (3 | ) | (13 | ) | (13 | ) | |||||||||||||||||||||
1/15 - 1/15 | — | — | — | — | 27,838 | 4.09 | (4 | ) | (4 | ) | (4 | ) | (4 | ) | |||||||||||||||||||||||
2/15 - 2/15 | — | — | — | — | 24,461 | 4.09 | (4 | ) | (4 | ) | (4 | ) | (4 | ) | |||||||||||||||||||||||
3/15 - 3/15 | — | — | — | — | 26,443 | 4.09 | (2 | ) | (2 | ) | (2 | ) | (2 | ) | |||||||||||||||||||||||
10/14 -10/14 | — | — | — | — | 29,753 | 4.19 | 6 | 6 | 6 | 6 | |||||||||||||||||||||||||||
11/14 - 11/14 | — | — | — | — | 28,635 | 4.19 | 2 | 2 | 2 | 2 | |||||||||||||||||||||||||||
12/14 -12/14 | — | — | — | — | 27,081 | 4.19 | — | — | — | — | |||||||||||||||||||||||||||
1/15 - 1/15 | — | — | — | — | 34,114 | 4.19 | (2 | ) | (2 | ) | (2 | ) | (2 | ) | |||||||||||||||||||||||
2/15 - 2/15 | — | — | — | — | 27,838 | 4.19 | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||
3/15 - 3/15 | — | — | — | — | 24,461 | 4.19 | 1 | 1 | 1 | 1 | |||||||||||||||||||||||||||
10/14 - 10/14 | — | — | — | — | 192,799 | 4.47 | 94 | 94 | 94 | 94 | |||||||||||||||||||||||||||
11/14 - 11/14 | — | — | — | — | 186,296 | 4.47 | 64 | 64 | 64 | 64 | |||||||||||||||||||||||||||
12/14 - 12/14 | — | — | — | — | 189,992 | 4.47 | 52 | 52 | 52 | 52 | |||||||||||||||||||||||||||
1/15 - 1/15 | — | — | — | — | 58,684 | 4.47 | 12 | 12 | 12 | 12 | |||||||||||||||||||||||||||
2/15 - 2/15 | — | — | — | — | 68,337 | 4.47 | 15 | 15 | 15 | 15 | |||||||||||||||||||||||||||
3/15 - 3/15 | — | — | — | — | 69,732 | 4.47 | 21 | 21 | 21 | 21 | |||||||||||||||||||||||||||
$ | (1,162 | ) | $ | (1,162 | ) | $ | 253 | $ | 253 | $ | (909 | ) | $ | (909 | ) | ||||||||||||||||||||||
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 | September 30, | Location | September 30, | Location | September 30, | ||||||||||||||||||||||||||||||||
2014 | 2014 | 2014 | |||||||||||||||||||||||||||||||||||
Commodity Contracts | Derivative financial instruments | Derivative financial | Derivative financial | ||||||||||||||||||||||||||||||||||
instruments | instruments | ||||||||||||||||||||||||||||||||||||
Current | $ | 270 | Current | $ | (1,179 | ) | Current | $ | (909 | ) | |||||||||||||||||||||||||||
Non-current | — | Non-current | — | Non-current | — | ||||||||||||||||||||||||||||||||
Total derivative instruments | $ | 270 | $ | (1,179 | ) | $ | (909 | ) | |||||||||||||||||||||||||||||
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 counter-party. | |||||||||||||||||||||||||||||||||||||
The effect of derivate instruments on our consolidated statements of operations was as follows (in thousands) (unaudited): | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging | Statements of Operations Location | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Instruments under Accounting Guidance | |||||||||||||||||||||||||||||||||||||
Realized Commodity Contracts | Gain (loss) on derivative financial instruments | $ | (2,316 | ) | $ | (2,725 | ) | $ | (11,174 | ) | $ | (2,573 | ) | ||||||||||||||||||||||||
Unrealized Commodity Contracts | Gain (loss) on derivative financial instruments | 7,199 | (5,143 | ) | 7,581 | (5,989 | ) | ||||||||||||||||||||||||||||||
Total derivative instruments | $ | 4,883 | $ | (7,868 | ) | $ | (3,593 | ) | $ | (8,562 | ) | ||||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||||
Sep. 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 September 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 September 30, 2014 | ||||||||||||||||
Using Fair Value Hierarchy | ||||||||||||||||
Fair Value as of | Level 1 | Level 2 | Level 3 | |||||||||||||
30-Sep-14 | ||||||||||||||||
Assets | ||||||||||||||||
Oil and Natural Gas Derivatives | $ | 270 | $ | — | $ | 270 | $ | — | ||||||||
$ | 270 | $ | — | $ | 270 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Oil and Natural Gas Derivatives | $ | (1,179 | ) | $ | — | $ | (1,179 | ) | $ | — | ||||||
$ | (1,179 | ) | $ | — | $ | (1,179 | ) | $ | — | |||||||
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 counter-parties involved in our derivative contracts. | ||||||||||||||||
As of September 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 September 30, 2014 was $121.5 million. | ||||||||||||||||
Fair Value on a Non-Recurring Basis | ||||||||||||||||
Oil and gas properties with a carrying value of $57.7 million were written down to their fair value of $43.2 million, resulting in an impairment charge of $11.4 million and $14.5 million for the three and nine months ended September 30, 2014, which is recognized under “ Impairment of oil and gas properties” in the consolidated statements of operations. As of September 30, 2013, oil and gas properties with a carrying value of $290.7 million were written down to their fair value of $234.9 million, resulting in an impairment charge of $0.4 million and $55.8 million for the three and nine months ended September 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
DEBT AND NOTES PAYABLE | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
DEBT AND NOTES PAYABLE | ' | |||||||
DEBT AND NOTES PAYABLE | ||||||||
Our debt and notes payable are summarized as follows: | ||||||||
September 30, | 31-Dec-13 | |||||||
2014 | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Senior Secured Revolving Credit Facility | $ | — | $ | 34,500 | ||||
13.75% Senior Secured Notes, net of discount | 138,169 | 149,383 | ||||||
Other debt | 363 | 303 | ||||||
Total debt | 138,532 | 184,186 | ||||||
Less: current portion | (340 | ) | (257 | ) | ||||
Total long-term debt | $ | 138,192 | $ | 183,929 | ||||
Senior Secured Revolving Credit Facility | ||||||||
Our Credit Facility was paid in full on March 17, 2014. As of September 30, 2014, we had zero borrowings outstanding in letters of credit issued under the Credit Facility. Our letters of credit were paid in full and terminated on June 8, 2014. | ||||||||
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 September 30, 2014, the recorded value of the Notes was $138.2 million, which includes the unamortized discount of $0.4 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% 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. | ||||||||
On July 16, 2014, each of Black Elk Energy Offshore Operations, LLC and Black Elk Energy Finance Corp. announced that it has commenced a cash tender offer to purchase its outstanding $150,000,000 aggregate principal amount of 13.75% senior secured notes due 2015. The Offer and the Consent Solicitation were being made in connection with our proposed disposition of certain assets pursuant to a Purchase and Sale Agreement between the Company and Renaissance Offshore, LLC, dated July 10, 2014. The offer expired on August 13, 2014. As of the expiration of the offer, $11,333,000 principal amount of the Notes validly tendered and not withdrawn, and holders of $110,565,000 principal amount of the Notes, or 73.71% of the Notes, validly consented to the Consent Solicitation and not revoked such consent. | ||||||||
On August 15, 2014, we announced the closing of the Renaissance sale of seven operated and one non-operated assets. Based on the consents received and the conditions to effectiveness, including the Renaissance Sale, having been satisfied or waived in connection with the announced tender offer and consent solicitation, the guarantor and the trustee under the indenture governing the Notes entered into a Second Supplemental Indenture in order to effect the proposed amendments to the indenture governing the Notes effective as of August 19, 2014. At the effective time, the Second Supplemental Indenture was binding on all holders of Notes, including those who did not deliver a consent. All Notes validly tendered and not withdrawn by 5 P.M ET on August 13, 2014 were accepted for payment and the Company promptly paid for such Notes, using Renaissance proceeds, in accordance with the terms of the Company’s Offer to Purchase and Consent Solicitation Statement dated July 16, 2014, and in the related Letter of Transmittal and Consent to Tender and to Give Consent. | ||||||||
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. Amended in conjunction with the Consent Solicitation on May 31, 2011 (the “Indenture”), our limitation on capital expenditures of 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. This covenant limiting capital expenditures was removed in the Supplemental Indenture described below. | ||||||||
On August 19, 2014, as supplemented by the First Supplemental Indenture, entered into a Second Supplemental Indenture (the “Supplemental Indenture”) in order to effect the proposed amendments to the Indenture effective as of August 19, 2014 (the “Effective Time”). At the Effective Time, the Supplemental Indenture will be binding on all holders of the Notes, including those who did not deliver a consent or who validly revoked their consent before the Expiration Time. | ||||||||
Among other things, the Supplemental Indenture (i) allowed the Company to apply the net proceeds from the Renaissance Sale to consummate the Offer and to use any remaining proceeds from the Renaissance Sale to purchase preferred equity issued by the Company; (ii) permitted the incurrence of indebtedness arising from the performance of the Company’s plugging and abandonment obligations and liens on the Company’s oil and gas properties to secure such indebtedness; and (iii) removed the covenant prohibiting the Company and its Restricted Subsidiaries (as defined in the Indenture) from incurring aggregate capital expenditures in excess of 30% of Consolidated EBITDAX (as defined in the Indenture) in any fiscal year. | ||||||||
The amounts of required principal payments based on our outstanding debt amounts as of September 30, 2014, were as follows: | ||||||||
Period Ending September 30, | (in thousands) | |||||||
2015 | $ | 340 | ||||||
2016 | 138,590 | |||||||
$ | 138,930 | |||||||
Unamortized discount on 13.75% Senior Secured Notes | (398 | ) | ||||||
Total debt | $ | 138,532 | ||||||
MEMBERS_DEFICIT
MEMBERS DEFICIT | 9 Months Ended |
Sep. 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 $10.2 million as paid-in-kind dividends for the nine months ended September 30, 2014. | |
In August 2014, we re-purchased $96 million of our Series E Preferred units using proceeds of the Renaissance Sale reflected in our Consolidated Statement of Cash Flows. As of September 30, 2014, we have $7.9 million Series E Preferred units outstanding. | |
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 | 9 Months Ended | |||
Sep. 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. Several civil lawsuits have been filed as a result of the West Delta 32 Incident. The lawsuits that were filed in Texas have been transferred to the United States District Court for the Eastern District of Louisiana, and all cases have been consolidated for discovery purposes in that Court. The first plaintiff’s case will be tried in either December of 2014 or January of 2015. All civil cases filed as a result of the West Delta 32 Incident are being defended by insurance defense counsel. We believe we have strong defenses and cross-claims and intend to defend ourselves. | ||||
Thomas Andrus, et al | ||||
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. | ||||
Oral arguments were heard on July 24, 2014. At that time, the judge has asked for additional briefing on the Conflicts of Law issue. We had a conference call with the Court on Friday, September 5, 2014 to set a schedule for the supplemental briefs the Court has requested. Our revised brief was due and submitted on or about September 10, 2014. Oral arguments on the motions to dismiss were heard on November 6, 2014 and we are awaiting the judge's ruling. | ||||
Grand Isle Shipyard ("GIS") Matters | ||||
On April 29, 2013, Grand Isle Shipyards, Inc. (“GIS”) sued BEEOO, Enviro Tech Systems, LLC, Wood Group USA, Inc., and Compass Engineering & Consultants, LLC in the United States District Court for the Eastern District of Louisiana for damages it alleged incurred in connection with the West Delta 32 Incident. GIS specifically sought damages for loss of property and equipment, expenses in the form of indemnity and medical benefits paid to or on behalf of its employees, and for unpaid invoices in connection with the work it performed at West Delta 32. Upon motion by BEEOO, however, the court dismissed GIS’ lawsuit and ordered GIS and BEEOO to first attempt to resolve their claims through mediation which took place on November 12, 2013. Since the mediation was unsuccessful, the Parties have now agreed to enter into binding Arbitration pursuant to and in accordance with the MSA. | ||||
Invoice Arbitration - On October 8, 2014, Black Elk submitted to the Arbitrator its initial briefing on all affirmative claims and defenses. This briefing was drafted and submitted pursuant to an order from the Arbitrator. GIS ignored this order to some degree and submitted Motions for summary Judgment on that date instead. GIS asked for summary judgment on all of its claims and confusingly argued that Black Elk is not entitled to summary judgment on its affirmative claims (Black Elk obviously has not sought summary judgment on its affirmative claims). On October 17, 2014, the parties participated in a telephonic hearing with the Arbitrator regarding the briefing and preexisting motions. The Arbitrator (1) granted Black Elk the right to conduct an audit pursuant to the MSA between the parties, (2) granted Black Elk limited discovery concerning the use of D&R workers on Black Elk platforms, and (3) stated that he would not be granting any dispositive motions in the case (i.e. GIS’ Motions for Summary Judgment). | ||||
The arbitration, currently scheduled for December 1, 2014, has been delayed until the new year. This was a necessary step as both parties will need to take depositions and aggregate discovery before an arbitration can take place. | ||||
Platform Arbitration - The arbitration case for damages to the West Delta 32 Platform 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. We are currently in the process of drafting discovery to GIS concerning D&R Resources, LLC's employees' rates, duties, and training. We will continue to defend ourselves vigorously. | ||||
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 discovery. We believe we have strong potential defenses and have submitted counterclaims, and intend to defend ourselves vigorously. | ||||
Arthur Garza III | ||||
On August 31, 2014, Arthur Garza, former Chief Technical Officer of Black Elk Energy Offshore Operations, LLC, filed suit against Black Elk Energy Offshore Operations for payment of severance under his employment agreement. This case is in discovery. We believe we have strong potential defenses and intend to defend ourselves vigorously. | ||||
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 September 30, 2014 were as follows: | ||||
Period Ending September 30, | (in thousands) | |||
2015 | $ | 4,056 | ||
2016 | 2,072 | |||
2017 | 1,784 | |||
2018 | 1,655 | |||
2019 | 1,590 | |||
Thereafter | 1,941 | |||
$ | 13,098 | |||
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 September 30, 2014, we have funded $20.5 million into the non-operating escrow account, leaving $10.7 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. As of September 30, 2014, we no longer use ARGO Bonds as these are now backed by cash collateral. | ||||
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
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 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 September 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 9 - Members' Deficit" in this Form 10-Q for additional discussion regarding members' 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 September 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”. |
CAUTIONARY_NOTE_REGARDING_FORW
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS | 9 Months Ended | |
Sep. 30, 2014 | ||
Cautionary Note Regarding Forward Looking Statements Disclosure [Abstract] | ' | |
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS | ' | |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS | ||
This Quarterly Report on Form 10-Q (this “Form 10-Q”) contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than statements of historical fact included in this Form 10-Q, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Form 10-Q, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements may include statements that relate to, among other things, our: | ||
• | Financial data, including production, costs, revenues and operating income; | |
• | Future financial and operating performance and results; | |
• | Business strategy and budgets; | |
• | Market prices; | |
• | Expected plugging and abandonment obligations and other expected asset retirement obligations; | |
• | Technology; | |
• | Financial strategy; | |
• | Amount, nature and timing of capital expenditures; | |
• | Drilling of wells and the anticipated results thereof; | |
• | Oil and natural gas reserves; | |
• | Timing and amount of future production of oil and natural gas; | |
• | Competition and government regulations; | |
• | Operating costs and other expenses; | |
• | Cash flow and anticipated liquidity; | |
• | Prospect development; | |
• | Property acquisitions and sales; and | |
• | Plans, forecasts, objectives, expectations and intentions. | |
These forward-looking statements are based on our current expectations and assumptions about future events and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisition. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause our actual results to differ from those in the forward-looking statements are described in “Item 1A. Risk Factors” in this Form 10-Q and our 2013 Form 10-K. | ||
These factors include risks summarized below: | ||
• | Low and/or declining prices for oil and natural gas; | |
• | Oil and natural gas price volatility; | |
• | Risks associated with drilling, including completion risks, cost overruns and the drilling of non-economic wells or dry holes; | |
• | Ability to raise additional capital to fund future capital expenditures; | |
• | Ability to post additional collateral as required by surety companies; | |
• | Cash flow and liquidity; | |
• | Ability to find, acquire, market, develop and produce new oil and natural gas properties; | |
• | Uncertainties in the estimation of proved reserves and in the projection of future rates of production and timing of development expenditures; | |
• | Geological concentration of our reserves; | |
• | Discovery, acquisition, development and replacement of oil and natural gas reserves; | |
• | Operating hazards attendant to the oil and natural gas business; | |
• | Down hole drilling and completion risks that are generally not recoverable from third parties or insurance; | |
• | Potential mechanical failure or underperformance of significant wells or pipeline mishaps; | |
• | Potential increases in plugging and abandonment and other asset retirement costs as a result of new regulations; | |
• | Weather conditions; | |
• | Availability and cost of material and equipment; | |
• | Delays in anticipated drilling start-up dates; | |
• | Actions or inactions of third-party operators of our properties; | |
• | Ability to find and retain skilled personnel; | |
• | Strength and financial resources of competitors; | |
• | Potential defects in title to our properties; | |
• | Federal and state regulatory developments and approvals, including the adoption of new regulatory requirements; | |
• | Losses possible from current litigation matters as a result of the explosion and fire on the West Delta 32-E Platform and other future litigation; | |
• | Environmental risks; | |
• | Changes in interest rates; | |
• | Developments in oil and natural gas-producing countries; | |
• | Events similar to those of September 11, 2001, Hurricanes Katrina, Rita, Gustav and Ike and the Deepwater Horizon explosion; and | |
• | Worldwide political and economic conditions. | |
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this Form 10-Q. We undertake no responsibility to publicly release the results of any revisions of our forward-looking statements after the date they are made. | ||
Should one or more of the risks or uncertainties described in “Item 1A. Risk Factors” in this Form 10-Q and our 2013 Form 10-K occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statement. | ||
All forward-looking statements, express or implied, included in this Form 10-Q are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. | ||
Except as required by law, we undertake no obligations to update, revise or release any revisions to any forward-looking statements to reflect events or circumstances occurring after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factors, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended | |
Sep. 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 (loss) 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 inter-company 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.” We are evaluating the impact this standard will have on our consolidated financial statements and related disclosures. | ||
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. | ||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The standard is effective for annual financial statement starting period ending December 15, 2016, with early adoption permitted. We are currently evaluating the provisions of ASU 2014-15 and assessing the impact, if any, it may have on our consolidated financial position, results of operations or cash flows. | ||
Liquidity, Risks and Uncertainties | ' | |
LIQUIDITY, RISKS AND UNCERTAINTIES | ||
The Company currently faces significant challenges with our cash flow and our need to pay for operating expenses, including our debt service obligations. The Company's cash position raises substantial doubt about the Company's ability to continue as a going concern. We will need to seek additional working capital through the sale of equity or assets and potentially refinance our debt in an effort to improve our liquidity position. | ||
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. | ||
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. | ||
Fair Value Measurement | ' | |
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. |
OIL_AND_GAS_PROPERTIES_Tables
OIL AND GAS PROPERTIES (Tables) | 9 Months Ended | |||||||
Sep. 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: | ||||||||
September 30, | 31-Dec-13 | |||||||
2014 | ||||||||
(Unaudited) | ||||||||
(in thousands) | ||||||||
Proved properties | $ | 260,726 | $ | 490,109 | ||||
Accumulated depreciation, depletion, amortization and impairment | (217,526 | ) | (293,973 | ) | ||||
Oil and gas properties, net | $ | 43,200 | $ | 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 settled | (17,717 | ) | ||||||
Liabilities relieved due to sale of properties | (67,051 | ) | ||||||
Accretion expense | 3,536 | |||||||
Balance at September 30, 2014 | 195,500 | |||||||
Less: current portion | (32,839 | ) | ||||||
Total Long-Term Asset Retirement Obligations | $ | 162,661 | ||||||
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Commodity Derivative Instruments | ' | ||||||||||||||||||||||||||||||||||||
At September 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) | ||||||||||||||||||||||||||||||||||
10/14 - 12/14 | 15,000 | 65 | $ | (1,122 | ) | $ | (1,122 | ) | — | — | $ | — | $ | — | $ | (1,122 | ) | $ | (1,122 | ) | |||||||||||||||||
10/14 - 10/14 | 5,525 | 87.75 | (17 | ) | (17 | ) | 28,635 | 4.09 | 3 | 3 | (14 | ) | (14 | ) | |||||||||||||||||||||||
11/14 - 11/14 | 5,525 | 87.75 | (13 | ) | (13 | ) | 27,081 | 4.09 | (1 | ) | (1 | ) | (14 | ) | (14 | ) | |||||||||||||||||||||
12/14 - 12/14 | 5,525 | 87.75 | (10 | ) | (10 | ) | 34,114 | 4.09 | (3 | ) | (3 | ) | (13 | ) | (13 | ) | |||||||||||||||||||||
1/15 - 1/15 | — | — | — | — | 27,838 | 4.09 | (4 | ) | (4 | ) | (4 | ) | (4 | ) | |||||||||||||||||||||||
2/15 - 2/15 | — | — | — | — | 24,461 | 4.09 | (4 | ) | (4 | ) | (4 | ) | (4 | ) | |||||||||||||||||||||||
3/15 - 3/15 | — | — | — | — | 26,443 | 4.09 | (2 | ) | (2 | ) | (2 | ) | (2 | ) | |||||||||||||||||||||||
10/14 -10/14 | — | — | — | — | 29,753 | 4.19 | 6 | 6 | 6 | 6 | |||||||||||||||||||||||||||
11/14 - 11/14 | — | — | — | — | 28,635 | 4.19 | 2 | 2 | 2 | 2 | |||||||||||||||||||||||||||
12/14 -12/14 | — | — | — | — | 27,081 | 4.19 | — | — | — | — | |||||||||||||||||||||||||||
1/15 - 1/15 | — | — | — | — | 34,114 | 4.19 | (2 | ) | (2 | ) | (2 | ) | (2 | ) | |||||||||||||||||||||||
2/15 - 2/15 | — | — | — | — | 27,838 | 4.19 | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||
3/15 - 3/15 | — | — | — | — | 24,461 | 4.19 | 1 | 1 | 1 | 1 | |||||||||||||||||||||||||||
10/14 - 10/14 | — | — | — | — | 192,799 | 4.47 | 94 | 94 | 94 | 94 | |||||||||||||||||||||||||||
11/14 - 11/14 | — | — | — | — | 186,296 | 4.47 | 64 | 64 | 64 | 64 | |||||||||||||||||||||||||||
12/14 - 12/14 | — | — | — | — | 189,992 | 4.47 | 52 | 52 | 52 | 52 | |||||||||||||||||||||||||||
1/15 - 1/15 | — | — | — | — | 58,684 | 4.47 | 12 | 12 | 12 | 12 | |||||||||||||||||||||||||||
2/15 - 2/15 | — | — | — | — | 68,337 | 4.47 | 15 | 15 | 15 | 15 | |||||||||||||||||||||||||||
3/15 - 3/15 | — | — | — | — | 69,732 | 4.47 | 21 | 21 | 21 | 21 | |||||||||||||||||||||||||||
$ | (1,162 | ) | $ | (1,162 | ) | $ | 253 | $ | 253 | $ | (909 | ) | $ | (909 | ) | ||||||||||||||||||||||
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 | September 30, | Location | September 30, | Location | September 30, | ||||||||||||||||||||||||||||||||
2014 | 2014 | 2014 | |||||||||||||||||||||||||||||||||||
Commodity Contracts | Derivative financial instruments | Derivative financial | Derivative financial | ||||||||||||||||||||||||||||||||||
instruments | instruments | ||||||||||||||||||||||||||||||||||||
Current | $ | 270 | Current | $ | (1,179 | ) | Current | $ | (909 | ) | |||||||||||||||||||||||||||
Non-current | — | Non-current | — | Non-current | — | ||||||||||||||||||||||||||||||||
Total derivative instruments | $ | 270 | $ | (1,179 | ) | $ | (909 | ) | |||||||||||||||||||||||||||||
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): | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging | Statements of Operations Location | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Instruments under Accounting Guidance | |||||||||||||||||||||||||||||||||||||
Realized Commodity Contracts | Gain (loss) on derivative financial instruments | $ | (2,316 | ) | $ | (2,725 | ) | $ | (11,174 | ) | $ | (2,573 | ) | ||||||||||||||||||||||||
Unrealized Commodity Contracts | Gain (loss) on derivative financial instruments | 7,199 | (5,143 | ) | 7,581 | (5,989 | ) | ||||||||||||||||||||||||||||||
Total derivative instruments | $ | 4,883 | $ | (7,868 | ) | $ | (3,593 | ) | $ | (8,562 | ) | ||||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 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 September 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 September 30, 2014 | ||||||||||||||||
Using Fair Value Hierarchy | ||||||||||||||||
Fair Value as of | Level 1 | Level 2 | Level 3 | |||||||||||||
30-Sep-14 | ||||||||||||||||
Assets | ||||||||||||||||
Oil and Natural Gas Derivatives | $ | 270 | $ | — | $ | 270 | $ | — | ||||||||
$ | 270 | $ | — | $ | 270 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Oil and Natural Gas Derivatives | $ | (1,179 | ) | $ | — | $ | (1,179 | ) | $ | — | ||||||
$ | (1,179 | ) | $ | — | $ | (1,179 | ) | $ | — | |||||||
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) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt and Notes Payable | ' | |||||||
Our debt and notes payable are summarized as follows: | ||||||||
September 30, | 31-Dec-13 | |||||||
2014 | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Senior Secured Revolving Credit Facility | $ | — | $ | 34,500 | ||||
13.75% Senior Secured Notes, net of discount | 138,169 | 149,383 | ||||||
Other debt | 363 | 303 | ||||||
Total debt | 138,532 | 184,186 | ||||||
Less: current portion | (340 | ) | (257 | ) | ||||
Total long-term debt | $ | 138,192 | $ | 183,929 | ||||
Scheduled Maturities of Principal Amounts of Debt Obligations | ' | |||||||
The amounts of required principal payments based on our outstanding debt amounts as of September 30, 2014, were as follows: | ||||||||
Period Ending September 30, | (in thousands) | |||||||
2015 | $ | 340 | ||||||
2016 | 138,590 | |||||||
$ | 138,930 | |||||||
Unamortized discount on 13.75% Senior Secured Notes | (398 | ) | ||||||
Total debt | $ | 138,532 | ||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future Minimum Lease Payments Table | ' | |||
Approximate future minimum lease payments for operating leases at September 30, 2014 were as follows: | ||||
Period Ending September 30, | (in thousands) | |||
2015 | $ | 4,056 | ||
2016 | 2,072 | |||
2017 | 1,784 | |||
2018 | 1,655 | |||
2019 | 1,590 | |||
Thereafter | 1,941 | |||
$ | 13,098 | |||
Going_Concern_Consideration_De
Going Concern Consideration (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 15, 2014 | Sep. 30, 2014 | Jul. 16, 2014 | Nov. 23, 2010 |
Renaissance Sale [Member] | 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] | |||
asset | ||||||
Going Concern [Line Items] | ' | ' | ' | ' | ' | ' |
Working capital deficit | ($61,900,000) | ' | ' | ' | ' | ' |
Accumulated deficit | -100,543,000 | -172,675,000 | ' | ' | ' | ' |
Accounts payable and accrued liabilities | $96,300,000 | ' | ' | ' | ' | ' |
Interest rate on notes/Fee percentage on letter of credit | ' | ' | ' | 13.75% | 13.75% | 13.75% |
Number of operated assets sold | ' | ' | 7 | ' | ' | ' |
Number of non-operated assets sold | ' | ' | 1 | ' | ' | ' |
Oil_and_Gas_Properties_Capital
Oil and Gas Properties - Capitalized Costs Related to Oil and Gas Properties (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Proved properties | $260,726 | $490,109 |
Accumulated depreciation, depletion, amortization and impairment | -217,526 | -293,973 |
Oil and gas properties, net | $43,200 | $196,136 |
Oil_and_Gas_Properties_Schedul
Oil and Gas Properties - Schedules of Change to Our Asset Retirement Obligations (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Movement in Property, Plant and Equipment [Roll Forward] | ' | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | $276,732 | ' | ' |
Liabilities settled | ' | ' | 17,717 | ' | ' |
Liabilities relieved due to sale of properties | ' | ' | 67,051 | ' | ' |
Accretion expense | 551 | 4,458 | 3,536 | 19,551 | ' |
Balance at September 30, 2014 | 195,500 | ' | 195,500 | ' | ' |
Less: current portion | -32,839 | ' | -32,839 | ' | -43,109 |
Total Long-Term Asset Retirement Obligations | $162,661 | ' | $162,661 | ' | $233,623 |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 15, 2014 | Sep. 30, 2014 | Mar. 13, 2014 | Sep. 30, 2014 | Mar. 26, 2013 | Sep. 30, 2013 |
Renaissance Sale [Member] | Renaissance Sale [Member] | Fieldwood Sale [Member] | Fieldwood Sale [Member] | Renaissance Offshore, LLC [Member] | Renaissance Offshore, LLC [Member] | |||||
asset | field | field | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operated assets sold | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' |
Number of non-operated assets sold | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Proceeds from sale of oil fields | ' | ' | $170,698 | $65,741 | $125,100 | ' | $50,000 | ' | $52,500 | ' |
Gain (loss) on sale of assets | $98,526 | ($424) | $133,077 | $35,367 | ' | $98,500 | ' | $34,500 | ' | $35,800 |
Number of operated fields sold | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' |
Number of non-operated fields sold | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' |
Number of fields sold to Renaissance | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' |
Derivative_Instruments_Commodi
Derivative Instruments - Commodity Derivative Instruments (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Derivative [Line Items] | ' |
Asset (Liability) | ($909) |
Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -1,162 |
Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Asset (Liability) | 253 |
10/14 - 12/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -1,122 |
Fair Value Gain (Loss) | -1,122 |
10/14 - 12/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 15,000 |
Contract Price ($/Bbl) | 65 |
Asset (Liability) | -1,122 |
Fair Value Gain (Loss) | -1,122 |
10/14 - 12/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
10/14 - 10/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -14 |
Fair Value Gain (Loss) | -14 |
10/14 - 10/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 5,525 |
Contract Price ($/Bbl) | 87.75 |
Asset (Liability) | -17 |
Fair Value Gain (Loss) | -17 |
10/14 - 10/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 28,635 |
Contract Price ($/Bbl) | 4.09 |
Asset (Liability) | 3 |
Fair Value Gain (Loss) | 3 |
11/14 - 11/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -14 |
Fair Value Gain (Loss) | -14 |
11/14 - 11/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 5,525 |
Contract Price ($/Bbl) | 87.75 |
Asset (Liability) | -13 |
Fair Value Gain (Loss) | -13 |
11/14 - 11/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 27,081 |
Contract Price ($/Bbl) | 4.09 |
Asset (Liability) | -1 |
Fair Value Gain (Loss) | -1 |
12/14 - 12/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -13 |
Fair Value Gain (Loss) | -13 |
12/14 - 12/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 5,525 |
Contract Price ($/Bbl) | 87.75 |
Asset (Liability) | -10 |
Fair Value Gain (Loss) | -10 |
12/14 - 12/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 34,114 |
Contract Price ($/Bbl) | 4.09 |
Asset (Liability) | -3 |
Fair Value Gain (Loss) | -3 |
1/15 - 1/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -4 |
Fair Value Gain (Loss) | -4 |
1/15 - 1/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
1/15 - 1/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 27,838 |
Contract Price ($/Bbl) | 4.09 |
Asset (Liability) | -4 |
Fair Value Gain (Loss) | -4 |
2/15 - 2/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -4 |
Fair Value Gain (Loss) | -4 |
2/15 - 2/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
2/15 - 2/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 24,461 |
Contract Price ($/Bbl) | 4.09 |
Asset (Liability) | -4 |
Fair Value Gain (Loss) | -4 |
3/15 - 3/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -2 |
Fair Value Gain (Loss) | -2 |
3/15 - 3/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
3/15 - 3/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 26,443 |
Contract Price ($/Bbl) | 4.09 |
Asset (Liability) | -2 |
Fair Value Gain (Loss) | -2 |
10/14 -10/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | 6 |
Fair Value Gain (Loss) | 6 |
10/14 -10/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
10/14 -10/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 29,753 |
Contract Price ($/Bbl) | 4.19 |
Asset (Liability) | 6 |
Fair Value Gain (Loss) | 6 |
11/14 - 11/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | 2 |
Fair Value Gain (Loss) | 2 |
11/14 - 11/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
11/14 - 11/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 28,635 |
Contract Price ($/Bbl) | 4.19 |
Asset (Liability) | 2 |
Fair Value Gain (Loss) | 2 |
12/14 -12/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
12/14 -12/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
12/14 -12/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 27,081 |
Contract Price ($/Bbl) | 4.19 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
1/15 - 1/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -2 |
Fair Value Gain (Loss) | -2 |
1/15 - 1/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
1/15 - 1/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 34,114 |
Contract Price ($/Bbl) | 4.19 |
Asset (Liability) | -2 |
Fair Value Gain (Loss) | -2 |
2/15 - 2/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | -1 |
Fair Value Gain (Loss) | -1 |
2/15 - 2/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
2/15 - 2/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 27,838 |
Contract Price ($/Bbl) | 4.19 |
Asset (Liability) | -1 |
Fair Value Gain (Loss) | -1 |
10/14 -10/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | 1 |
Fair Value Gain (Loss) | 1 |
10/14 -10/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
10/14 -10/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 24,461 |
Contract Price ($/Bbl) | 4.19 |
Asset (Liability) | 1 |
Fair Value Gain (Loss) | 1 |
10/14 - 10/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | 94 |
Fair Value Gain (Loss) | 94 |
10/14 - 10/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
10/14 - 10/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 192,799 |
Contract Price ($/Bbl) | 4.47 |
Asset (Liability) | 94 |
Fair Value Gain (Loss) | 94 |
11/14 - 11/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | 64 |
Fair Value Gain (Loss) | 64 |
11/14 - 11/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
11/14 - 11/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 186,296 |
Contract Price ($/Bbl) | 4.47 |
Asset (Liability) | 64 |
Fair Value Gain (Loss) | 64 |
12/14 - 12/14 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | 52 |
Fair Value Gain (Loss) | 52 |
12/14 - 12/14 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
12/14 - 12/14 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 189,992 |
Contract Price ($/Bbl) | 4.47 |
Asset (Liability) | 52 |
Fair Value Gain (Loss) | 52 |
1/15 - 1/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | 12 |
Fair Value Gain (Loss) | 12 |
1/15 - 1/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
1/15 - 1/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 58,684 |
Contract Price ($/Bbl) | 4.47 |
Asset (Liability) | 12 |
Fair Value Gain (Loss) | 12 |
2/15 - 2/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | 15 |
Fair Value Gain (Loss) | 15 |
2/15 - 2/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
2/15 - 2/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 68,337 |
Contract Price ($/Bbl) | 4.47 |
Asset (Liability) | 15 |
Fair Value Gain (Loss) | 15 |
3/15 - 3/15 | ' |
Derivative [Line Items] | ' |
Asset (Liability) | 21 |
Fair Value Gain (Loss) | 21 |
3/15 - 3/15 | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 0 |
Contract Price ($/Bbl) | 0 |
Asset (Liability) | 0 |
Fair Value Gain (Loss) | 0 |
3/15 - 3/15 | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Monthly Volume (Bbls) | 69,732 |
Contract Price ($/Bbl) | 4.47 |
Asset (Liability) | 21 |
Fair Value Gain (Loss) | 21 |
Fair Value [Member] | ' |
Derivative [Line Items] | ' |
Fair Value Gain (Loss) | -909 |
Fair Value [Member] | Crude Oil [Member] | ' |
Derivative [Line Items] | ' |
Fair Value Gain (Loss) | -1,162 |
Fair Value [Member] | Natural Gas [Member] | ' |
Derivative [Line Items] | ' |
Fair Value Gain (Loss) | $253 |
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 $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | $270 | $1,370 |
Liability Derivatives | -1,179 | -9,859 |
Commodity Contracts [Member] | Derivatives Not Designated as Hedging Instruments under Accounting Guidance [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset (Liability) Derivatives Total | -909 | -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 | -909 | -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 | 270 | 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 | -1,179 | -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 | 270 | 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 | ($1,179) | ($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 | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Total derivative instruments | $4,883 | ($7,868) | ($3,593) | ($8,562) |
Gain (Loss) on Derivative Instruments, Net, Pretax | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivative financial instruments | -2,316 | -2,725 | -11,174 | -2,573 |
Gain (loss) on derivative financial instruments | $7,199 | ($5,143) | $7,581 | ($5,989) |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value of Assets and Liabilities by Level within Fair Value Hierarchy Table (Details) (USD $) | Sep. 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 | $270 | $1,370 |
Fair value of derivative liabilities | -1,179 | -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 liabilities | 0 | 0 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of derivative assets | 270 | 1,370 |
Fair value of derivative liabilities | -1,179 | -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 liabilities | 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 | 270 | 1,370 |
Fair value of derivative liabilities | -1,179 | -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 liabilities | 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 | 270 | 1,370 |
Fair value of derivative liabilities | -1,179 | -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 liabilities | $0 | $0 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Debt, fair value | $121,500,000 | ' | $121,500,000 | ' | ' |
Oil and gas properties, fair value | 43,200,000 | ' | 43,200,000 | ' | 196,136,000 |
Impairment charge | 11,395,000 | 402,000 | 14,469,000 | 55,779,000 | ' |
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 | 57,700,000 | 290,700,000 | 57,700,000 | 290,700,000 | ' |
Oil and gas properties, fair value | 43,200,000 | 234,900,000 | 43,200,000 | 234,900,000 | ' |
Impairment charge | $11,400,000 | $400,000 | $14,500,000 | $55,800,000 | ' |
Debt_and_Notes_Payable_Schedul
Debt and Notes Payable - Schedule of Debt and Notes Payable (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total debt | $138,532 | $184,186 |
Less: current portion | -340 | -257 |
Total long-term debt | 138,192 | 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 | 138,169 | 149,383 |
Other debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | $363 | $303 |
Debt_and_Notes_Payable_Additio
Debt and Notes Payable - Additional Information (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | 23-May-11 | Sep. 30, 2014 | Jul. 16, 2014 | Nov. 23, 2010 | Sep. 30, 2014 | Dec. 31, 2012 | Sep. 30, 2014 | Aug. 15, 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] | 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] | Renaissance Sale [Member] | |||
Letter of Credit [Member] | 13.75% Senior Secured Notes, net of discount [Member] | Maximum [Member] | asset | |||||||
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% | 13.75% | 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 | ' | ' | ' | 138,200,000 | ' | ' | ' | ' | ' | ' |
Unamortized discount on 13.75% Senior Secured Notes | 398,000 | 617,000 | ' | 400,000 | ' | ' | ' | ' | ' | ' |
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% | ' | ' | ' | ' | ' | ' | ' |
Outstanding aggregate principal amount of 13.75% Senior Notes | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' |
Principal amount of notes tendered and not withdrawn | ' | ' | ' | ' | 11,333,000 | ' | ' | ' | ' | ' |
Principal amount of notes consented to Consent Solicitation, not revoked | ' | ' | ' | ' | 110,565,000 | ' | ' | ' | ' | ' |
Percent of notes consented to Consent Solicitation, not revoked | ' | ' | ' | ' | 73.71% | ' | ' | ' | ' | ' |
Number of operated assets sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 |
Number of non-operated assets sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 |
Leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | 1.4 | ' |
Amended capital expenditure maximum limit value | ' | ' | ' | ' | ' | ' | ' | $60,000,000 | ' | ' |
Maximum percent limit on capital expenditure covenant | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' |
Debt_and_Notes_Payable_Schedul1
Debt and Notes Payable - Scheduled Maturities of Principal Amounts of Debt Obligations (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2015 | $340 | ' |
2016 | 138,590 | ' |
Notes and loans payable | 138,930 | ' |
Unamortized discount on 13.75% Senior Secured Notes | -398 | -617 |
Total debt | $138,532 | $184,186 |
Members_Deficit_Additional_Inf
Members Deficit - Additional Information (Details) (USD $) | 0 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | 9 Months Ended | ||||||
Feb. 12, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 25, 2014 | Aug. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Mar. 31, 2013 | Mar. 24, 2014 | Sep. 30, 2014 | Mar. 31, 2013 | Feb. 12, 2013 | |
Class E units [Member] | Class E units [Member] | Class E units [Member] | Class D Preferred Units [Member] | Preferred Units, Class E [Member] | PPBE [Member] | AQR Diversified Arbitrage Fund [Member] | AQR Diversified Arbitrage Fund [Member] | Capital Unit Class B [Member] | Capital Unit Class B [Member] | ||||
Class E units [Member] | Class E units [Member] | Preferred Units, Class E [Member] | PPBE [Member] | PPVA (Equity) [Member] | |||||||||
Class B units [Member] | |||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional units issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,800,000 | 1,131,458.50 |
Temporary Units Issued | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' |
Capital contribution | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | ' | ' | ' |
Class D Units Exchanged for Class E Units | ' | ' | ' | ' | ' | 43,000,000 | ' | ' | ' | ' | ' | ' | ' |
Value of Class D units exchanged for Class E units | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' |
Paid-in-kind dividends converted to Class E stock | ' | ' | ' | ' | ' | ' | 13,000,000 | ' | ' | ' | 10,200,000 | ' | ' |
Rate of accruing dividends payable in kind | ' | ' | ' | 36.00% | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' |
Payments for Repurchase of Preferred Units | ' | ' | ' | ' | 96,000,000 | ' | ' | ' | ' | 14,000,000 | ' | ' | ' |
Series E preferred units outstanding | ' | $7,936,000 | $109,744,000 | ' | ' | ' | ' | $7,900,000 | ' | ' | ' | ' | ' |
Stock Split ratio | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet1
Commitments and Contingencies - Additional Information (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 30, 2010 | Sep. 30, 2014 | Dec. 19, 2012 | Sep. 30, 2014 | Jun. 01, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 16, 2014 | |
escrow_account | 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] | |
Installment | investor | ||||||||||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of escrow accounts | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | 20,500,000 | ' | ' | ' | ' | ' | ' |
Remaining balance of escrow to be paid | ' | ' | ' | ' | 10,700,000 | ' | ' | ' | ' | ' | ' |
Payments for surety bonds | ' | ' | ' | ' | ' | ' | ' | ' | 33,000,000 | ' | ' |
Issuance of performance bonds | ' | ' | ' | ' | ' | 32,600,000 | ' | ' | ' | ' | ' |
Number of plaintiffs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' |
Damages sought | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,500,000 |
Funding in dispute | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,350,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Future Minimum Lease Payments Table (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2015 | $4,056 |
2016 | 2,072 |
2017 | 1,784 |
2018 | 1,655 |
2019 | 1,590 |
Thereafter | 1,941 |
Operating lease, total | $13,098 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Details) (USD $) | 0 Months Ended | 0 Months Ended | ||||
Aug. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | 28-May-13 | Sep. 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 | ' | ' | ' |
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 | ' |