Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 13, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Matador Resources Co | ' | ' |
Entity Central Index Key | '0001520006 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $593,728,477 |
Entity Common Stock, Shares Outstanding | ' | 65,744,878 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash | $6,287 | $2,095 |
Certificates of deposit | 0 | 230 |
Accounts receivable | ' | ' |
Oil and natural gas revenues | 25,823 | 24,422 |
Joint interest billings | 4,785 | 4,118 |
Other | 1,066 | 974 |
Derivative instruments | 19 | 4,378 |
Deferred income taxes | 1,636 | 0 |
Lease and well equipment inventory | 785 | 877 |
Prepaid expenses | 1,771 | 1,103 |
Total current assets | 42,172 | 38,197 |
Oil and natural gas properties, full-cost method | ' | ' |
Evaluated | 1,090,656 | 763,527 |
Unproved and unevaluated | 194,306 | 149,675 |
Other property and equipment | 29,910 | 27,258 |
Less accumulated depletion, depreciation and amortization | -468,995 | -349,370 |
Net property and equipment | 845,877 | 591,090 |
Other assets | ' | ' |
Derivative instruments | 173 | 771 |
Deferred income taxes | 0 | 411 |
Other assets | 2,108 | 1,560 |
Total other assets | 2,281 | 2,742 |
Total assets | 890,330 | 632,029 |
Current liabilities | ' | ' |
Accounts payable | 25,358 | 28,120 |
Accrued liabilities | 63,987 | 59,179 |
Royalties payable | 7,798 | 6,541 |
Derivative instruments | 2,692 | 670 |
Advances from joint interest owners | 0 | 1,515 |
Deferred income taxes | 0 | 411 |
Income taxes payable | 404 | 0 |
Other current liabilities | 88 | 56 |
Total current liabilities | 100,327 | 96,492 |
Long-term liabilities | ' | ' |
Borrowings under Credit Agreement | 200,000 | 150,000 |
Asset retirement obligations | 7,309 | 5,109 |
Derivative instruments | 253 | 0 |
Deferred income taxes | 10,929 | 0 |
Other long-term liabilities | 2,588 | 1,324 |
Total long-term liabilities | 221,079 | 156,433 |
Commitments and contingencies (Note 13) | ' | ' |
Shareholders' equity | ' | ' |
Common stock — Class A, $0.01 par value, 80,000,000 shares authorized; 66,958,867 and 56,778,718 shares issued; and 65,652,690, and 55,577,667 shares outstanding, respectively | 670 | 568 |
Additional paid-in capital | 548,935 | 404,311 |
Retained earnings (deficit) | 30,084 | -15,010 |
Treasury stock, at cost, 1,306,177 and 1,201,051 shares, respectively | -10,765 | -10,765 |
Total shareholders' equity | 568,924 | 379,104 |
Total liabilities and shareholders' equity | $890,330 | $632,029 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
Treasury stock, shares | 1,306,177 | 1,201,051 |
Class A | ' | ' |
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 66,958,867 | 56,778,718 |
Common stock, shares outstanding | 65,652,690 | 55,577,667 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Oil and natural gas revenues | $269,030 | $155,998 | $67,000 |
Realized (loss) gain on derivatives | -909 | 13,960 | 7,106 |
Unrealized (loss) gain on derivatives | -7,232 | -4,802 | 5,138 |
Total revenues | 260,889 | 165,156 | 79,244 |
Expenses | ' | ' | ' |
Production taxes and marketing | 20,973 | 11,672 | 6,278 |
Lease operating | 38,720 | 28,184 | 7,244 |
Depletion, depreciation and amortization | 98,395 | 80,454 | 31,754 |
Accretion of asset retirement obligations | 348 | 256 | 209 |
Full-cost ceiling impairment | 21,229 | 63,475 | 35,673 |
General and administrative | 20,779 | 14,543 | 13,394 |
Total expenses | 200,444 | 198,584 | 94,552 |
Operating income (loss) | 60,445 | -33,428 | -15,308 |
Other income (expense) | ' | ' | ' |
Net loss on asset sales and inventory impairment | -192 | -485 | -154 |
Interest expense | -5,687 | -1,002 | -683 |
Interest and other income | 225 | 224 | 315 |
Total other expense | -5,654 | -1,263 | -522 |
Income (loss) before income taxes | 54,791 | -34,691 | -15,830 |
Income tax provision (benefit) | ' | ' | ' |
Current | 404 | 0 | -46 |
Deferred | 9,293 | -1,430 | -5,475 |
Total income tax provision (benefit) | 9,697 | -1,430 | -5,521 |
Net income (loss) | $45,094 | ($33,261) | ($10,309) |
Basic | ' | ' | ' |
Basic | 58,777 | 53,957 | 42,718 |
Diluted | ' | ' | ' |
Diluted | 58,929 | 53,957 | 42,718 |
Class A | ' | ' | ' |
Basic | ' | ' | ' |
Basic (usd per share) | $0.77 | ($0.62) | ($0.25) |
Diluted | ' | ' | ' |
Diluted (usd per share) | $0.77 | ($0.62) | ($0.25) |
Basic | ' | ' | ' |
Basic | 58,777 | 53,852 | 41,687 |
Diluted | ' | ' | ' |
Diluted | 58,929 | 53,852 | 41,687 |
Class B | ' | ' | ' |
Basic | ' | ' | ' |
Basic (usd per share) | $0 | ($0.35) | $0.02 |
Diluted | ' | ' | ' |
Diluted (usd per share) | $0 | ($0.35) | $0.02 |
Basic | ' | ' | ' |
Basic | 0 | 105 | 1,031 |
Diluted | ' | ' | ' |
Diluted | 0 | 105 | 1,031 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Class A | Common stock | Common stock | Additional paid-in capital | Retained earnings (deficit) | Treasury stock |
In Thousands, except Share data, unless otherwise specified | USD ($) | Class A | Class B | USD ($) | USD ($) | USD ($) | |
USD ($) | USD ($) | ||||||
Beginning Balance at Dec. 31, 2010 | $281,877 | ' | $427 | $10 | $263,342 | $28,863 | ($10,765) |
Beginning Balance, shares at Dec. 31, 2010 | ' | ' | 42,750,000 | 1,031,000 | ' | ' | 1,179,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Issuance of Class A common stock | 592 | ' | 1 | ' | 591 | ' | ' |
Issuance of Class A common stock, shares | ' | ' | 54,000 | ' | ' | ' | ' |
Cost to issue equity | -1,667 | ' | ' | ' | -1,667 | ' | ' |
Issuance of Class A common stock to Board member and advisors | 230 | ' | ' | ' | 230 | ' | ' |
Issuance of Class A common stock to Board member and advisors, shares | ' | ' | 20,000 | ' | ' | ' | ' |
Stock options exercised | 1,023 | ' | 1 | ' | 1,022 | ' | ' |
Stock options exercised, shares | ' | ' | 93,000 | ' | ' | ' | ' |
Restricted stock vested | 44 | ' | ' | ' | 44 | ' | ' |
Swing sale profit contribution | 0 | ' | ' | ' | ' | ' | ' |
Class B dividends declared | -275 | ' | ' | ' | ' | -275 | ' |
Current period net (loss) income | -10,309 | ' | ' | ' | ' | -10,309 | ' |
Ending Balance at Dec. 31, 2011 | 271,515 | ' | 429 | 10 | 263,562 | 18,279 | -10,765 |
Ending Balance, shares at Dec. 31, 2011 | ' | 55,577,667 | 42,917,000 | 1,031,000 | ' | ' | 1,179,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Issuance of Class A common stock | 146,510 | ' | 122 | ' | 146,388 | ' | ' |
Issuance of Class A common stock, shares | ' | ' | 12,209,000 | ' | ' | ' | ' |
Cost to issue equity | -11,268 | ' | ' | ' | -11,268 | ' | ' |
Conversion of Class B common stock to Class A common stock | ' | ' | 10 | -10 | ' | ' | ' |
Conversion of Class B common stock to Class A common stock, shares | ' | ' | 1,031,000 | -1,031,000 | ' | ' | ' |
Issuance of Class A common stock to Board member and advisors | 71 | ' | ' | ' | 71 | ' | ' |
Issuance of Class A common stock to Board member and advisors, shares | ' | ' | 7,000 | ' | ' | ' | ' |
Stock options expense related to equity based awards | 432 | ' | ' | ' | 432 | ' | ' |
Stock options exercised | 3,544 | ' | 3 | ' | 3,541 | ' | ' |
Stock options exercised, shares | ' | ' | 296,000 | ' | ' | ' | ' |
Liability based stock option awards settled | 216 | ' | ' | ' | 216 | ' | ' |
Changes in fair value for liability-based awards for which grant date fair value is in excess of fair value | 620 | ' | ' | ' | 620 | ' | ' |
Restricted stock issued | ' | ' | 4 | ' | -4 | ' | ' |
Restricted stock issued, shares | ' | ' | 319,000 | ' | ' | ' | ' |
Restricted stock forfeited | -29 | ' | ' | ' | -29 | ' | ' |
Restricted stock forfeited, Shares | ' | ' | ' | ' | ' | ' | 22,000 |
Restricted stock and restricted stock units expense | 758 | ' | ' | ' | 758 | ' | ' |
Swing sale profit contribution | 24 | ' | ' | ' | 24 | ' | ' |
Class B dividends declared | -28 | ' | ' | ' | ' | -28 | ' |
Current period net (loss) income | -33,261 | ' | ' | ' | ' | -33,261 | ' |
Ending Balance at Dec. 31, 2012 | 379,104 | ' | 568 | 0 | 404,311 | -15,010 | -10,765 |
Ending Balance, shares at Dec. 31, 2012 | ' | 65,652,690 | 56,779,000 | 0 | ' | ' | 1,201,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Issuance of Class A common stock | 149,069 | ' | 98 | ' | 148,971 | ' | ' |
Issuance of Class A common stock, shares | ' | ' | 9,780,000 | ' | ' | ' | ' |
Cost to issue equity | -7,390 | ' | ' | ' | -7,390 | ' | ' |
Conversion of Class B common stock to Class A common stock, shares | ' | 1,030,700 | ' | ' | ' | ' | ' |
Issuance of Class A common stock to Board member and advisors | 57 | ' | ' | ' | 57 | ' | ' |
Issuance of Class A common stock to Board member and advisors, shares | ' | ' | 22,000 | ' | ' | ' | ' |
Stock options expense related to equity based awards | 1,232 | ' | ' | ' | 1,232 | ' | ' |
Stock options exercised, shares | 5,000 | ' | ' | ' | ' | ' | ' |
Liability based stock option awards settled | 162 | ' | ' | ' | 162 | ' | ' |
Restricted stock issued | 0 | ' | 4 | ' | -4 | ' | ' |
Restricted stock issued, shares | ' | ' | 378,000 | ' | ' | ' | ' |
Restricted stock forfeited | -22 | ' | ' | ' | -22 | ' | ' |
Restricted stock forfeited, Shares | ' | ' | ' | ' | ' | ' | 105,000 |
Restricted stock and restricted stock units expense | 1,618 | ' | ' | ' | 1,618 | ' | ' |
Swing sale profit contribution | 0 | ' | ' | ' | ' | ' | ' |
Current period net (loss) income | 45,094 | ' | ' | ' | ' | 45,094 | ' |
Ending Balance at Dec. 31, 2013 | $568,924 | ' | $670 | ' | $548,935 | $30,084 | ($10,765) |
Ending Balance, shares at Dec. 31, 2013 | ' | ' | 66,959,000 | ' | ' | ' | 1,306,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities | ' | ' | ' |
Net income (loss) | $45,094 | ($33,261) | ($10,309) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ' | ' | ' |
Unrealized loss (gain) on derivatives | 7,232 | 4,802 | -5,138 |
Depletion, depreciation and amortization | 98,395 | 80,454 | 31,754 |
Accretion of asset retirement obligations | 348 | 256 | 209 |
Full-cost ceiling impairment | 21,229 | 63,475 | 35,673 |
Stock-based compensation expense | 3,897 | 140 | 2,406 |
Deferred income tax provision (benefit) | 9,293 | -1,430 | -5,475 |
Loss on asset sales and inventory impairment | 192 | 485 | 154 |
Changes in operating assets and liabilities | ' | ' | ' |
Accounts receivable | -2,160 | -16,342 | -1,523 |
Lease and well equipment inventory | 243 | 50 | 21 |
Prepaid expenses | -668 | 50 | 650 |
Other assets | -548 | -673 | -814 |
Accounts payable, accrued liabilities and other current liabilities | -3,638 | 19,740 | 13,497 |
Royalties payable | 1,257 | 4,685 | 873 |
Advances from joint interest owners | -1,515 | 1,515 | -723 |
Income taxes payable | 404 | 0 | 0 |
Other long-term liabilities | 415 | 282 | 613 |
Net cash provided by operating activities | 179,470 | 124,228 | 61,868 |
Investing activities | ' | ' | ' |
Oil and natural gas properties capital expenditures | -363,192 | -300,689 | -156,431 |
Expenditures for other property and equipment | -3,977 | -7,332 | -4,671 |
Purchases of certificates of deposit | -61 | -496 | -4,298 |
Maturities of certificates of deposit | 291 | 1,601 | 5,312 |
Net cash used in investing activities | -366,939 | -306,916 | -160,088 |
Financing activities | ' | ' | ' |
Repayments of borrowings under Credit Agreement | -130,000 | -123,000 | -103,000 |
Borrowings under Credit Agreement | 180,000 | 160,000 | 191,000 |
Proceeds from issuance of common stock | 149,069 | 146,510 | 592 |
Swing sale profit contribution | 0 | 24 | 0 |
Cost to issue equity | -7,390 | -11,599 | -1,710 |
Proceeds from stock options exercised | 0 | 2,660 | 837 |
Taxes paid related to net share settlement of stock-based compensation | -18 | 0 | 0 |
Payment of dividends - Class B | 0 | -96 | -275 |
Net cash provided by financing activities | 191,661 | 174,499 | 87,444 |
Increase (decrease) in cash | 4,192 | -8,189 | -10,776 |
Cash at beginning of year | 2,095 | 10,284 | 21,060 |
Cash at end of year | $6,287 | $2,095 | $10,284 |
Nature_of_Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
NATURE OF OPERATIONS | ' |
NATURE OF OPERATIONS | |
Matador Resources Company (“Matador” and, collectively with its subsidiaries, the “Company”) is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Matador’s current operations are focused primarily on the oil and liquids-rich portion of the Eagle Ford shale play in South Texas and the Wolfcamp and Bone Spring plays in the Permian Basin in Southeast New Mexico and West Texas. The Company also operates in the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. In addition, Matador has a large exploratory leasehold position in Southwest Wyoming and adjacent areas in Utah and Idaho where the Company is testing the Meade Peak shale. | |
On November 22, 2010, the company formerly known as Matador Resources Company, a Texas corporation founded on July 3, 2003, formed a wholly-owned subsidiary, Matador Holdco, Inc. Pursuant to the terms of a corporate reorganization that was completed on August 9, 2011 and in connection with its initial public offering, the former Matador Resources Company became a wholly-owned subsidiary of Matador Holdco, Inc. and changed its corporate name to MRC Energy Company, and Matador Holdco, Inc. changed its corporate name to Matador Resources Company. | |
MRC Energy Company holds the primary assets of the Company and has four wholly-owned subsidiaries: Matador Production Company, MRC Permian Company, MRC Rockies Company and Longwood Gathering and Disposal Systems GP, Inc. Matador Production Company serves as the oil and natural gas operating entity. MRC Permian Company conducts oil and natural gas exploration and development activities in Southeast New Mexico and West Texas. MRC Rockies Company conducts oil and natural gas exploration and development activities in the Rocky Mountains and specifically in the states of Wyoming, Utah and Idaho. Longwood Gathering and Disposal Systems GP, Inc. serves as the general partner of Longwood Gathering and Disposal Systems, LP, which owns a majority of the pipeline systems and salt water disposal wells used in the Company’s operations, transports limited quantities of third-party natural gas and disposes of limited quantities of third-party salt water. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Basis of Presentation | |||||||||||||
The consolidated financial statements include the accounts of Matador Resources Company and its wholly-owned subsidiary, MRC Energy Company, as well as the accounts of MRC Energy Company’s four wholly-owned subsidiaries, Matador Production Company, Longwood Gathering and Disposal Systems GP, Inc., MRC Permian Company and MRC Rockies Company, and the accounts of Longwood Gathering and Disposal Systems, LP. These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company’s operations are conducted in the one segment generally referred to as the oil and natural gas exploration and production industry. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||
Reclassifications | |||||||||||||
Certain reclassifications have been made to the prior years’ financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations, cash flows or retained earnings. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While the Company believes its estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates. | |||||||||||||
The Company’s consolidated financial statements are based on a number of significant estimates, including oil and natural gas revenues, accrued assets and liabilities, stock-based compensation, valuation of derivative instruments, deferred tax assets and liabilities and oil and natural gas reserves. The estimates of oil and natural gas reserves quantities and future net cash flows are the basis for the calculations of depletion and impairment of oil and natural gas properties, as well as estimates of asset retirement obligations and certain tax accruals. The Company’s oil and natural gas reserves estimates, which are inherently imprecise and based upon many factors that are beyond the Company’s control, including oil and natural gas prices, are prepared by the Company’s engineering staff in accordance with guidelines established by the Securities and Exchange Commission (“SEC”) and then audited for their reasonableness and conformance with SEC guidelines by Netherland, Sewell & Associates, Inc., independent reservoir engineers. | |||||||||||||
Certificates of Deposit | |||||||||||||
Certificates of deposit (“CDs”) are highly liquid, short-term investments with an original maturity of more than 30 days but not more than one year. Each CD was recorded at market and was fully insured by the Federal Deposit Insurance Corporation. | |||||||||||||
Accounts Receivable | |||||||||||||
The Company sells its operated oil, natural gas and natural gas liquids production to various purchasers (see “ — Revenue Recognition” below). Due to the nature of the markets for oil, natural gas and natural gas liquids, the Company does not believe that the loss of any one purchaser would significantly impact operations. In addition, the Company may participate with industry partners in the drilling, completion and operation of oil and natural gas wells. Substantially all of the Company’s accounts receivable are due from either purchasers of oil, natural gas and natural gas liquids or participants in oil and natural gas wells for which the Company serves as the operator. Accounts receivable are due within 30 to 60 days of the production date and 30 days of the billing date, respectively, and are stated at amounts due from purchasers and industry partners. Amounts are considered past due if they have been outstanding for 60 days or more. No interest is typically charged on past due amounts. | |||||||||||||
The Company reviews its need for an allowance for doubtful accounts on a periodic basis, and determines the allowance, if any, by considering the length of time past due, previous loss history, future net revenues of the debtor’s ownership interest in oil and natural gas properties operated by the Company and the debtor’s ability to pay its obligations, among other things. The Company has no allowance for doubtful accounts related to its accounts receivable for any reporting period presented. | |||||||||||||
Lease and Well Equipment Inventory | |||||||||||||
Lease and well equipment inventory is stated at the lower of cost or market and consists entirely of equipment scheduled for use in future well operations or equipment held for sale. | |||||||||||||
Property and Equipment | |||||||||||||
The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method of accounting, all costs associated with the acquisition, exploration and development of oil and natural gas properties and reserves, including unproved and unevaluated property costs, are capitalized as incurred and accumulated in a single cost center representing the Company’s activities, which are undertaken exclusively in the United States. Such costs include lease acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties, costs of drilling both productive and non-productive wells, capitalized interest on qualifying projects and general and administrative expenses directly related to acquisition, exploration and development activities, but do not include any costs related to production, selling or general corporate administrative activities. The Company capitalized $3.7 million, $2.6 million and $2.0 million of its general and administrative costs in 2013, 2012 and 2011, respectively. The Company capitalized $1.9 million, $1.6 million and $1.3 million of its interest expense for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
The net capitalized costs of oil and natural gas properties are limited to the lower of unamortized costs less related deferred income taxes or the cost center “ceiling”. The cost center ceiling is defined as the sum of: | |||||||||||||
(a) the present value, discounted at 10%, of future net revenues of proved oil and natural gas reserves, reduced by the estimated costs of developing these reserves, plus | |||||||||||||
(b) unproved and unevaluated property costs not being amortized, plus | |||||||||||||
(c) the lower of cost or estimated fair value of unproved and unevaluated properties included in the costs being amortized, if any, less | |||||||||||||
(d) income tax effects related to the properties involved. | |||||||||||||
Any excess of the Company’s net capitalized costs above the cost center ceiling as described above is charged to operations as a full-cost ceiling impairment. Since January 1, 2011, the need for a full-cost ceiling impairment is required to be assessed on a quarterly basis. The fair value of the Company’s derivative instruments is not included in the ceiling test computation as the Company does not designate these instruments as hedge instruments for accounting purposes. | |||||||||||||
The estimated present value of after-tax future net cash flows from proved oil and natural gas reserves is highly dependent upon the quantities of proved reserves which requires substantial judgment. The associated commodity prices and the applicable discount rate used in these estimates are in accordance with guidelines established by the SEC. Under these guidelines, oil and natural gas reserves are estimated using then-current operating and economic conditions, with no provision for price and cost escalations in future periods except by contractual arrangements. Future net revenues are calculated using prices that represent the arithmetic average of the first-day-of-the-month price for the 12-month period prior to the end of each quarterly period and dictate that a 10 % discount factor be used. For the period from January through December 2013, these average oil and natural gas prices were $93.42 per barrel and $3.670 per MMBtu, respectively. For the period from January through December 2012, these average oil and natural gas prices were $91.21 per barrel and $2.757 per MMBtu, respectively. For the period from January through December 2011, these average oil and natural gas prices were $92.71 per barrel and $4.118 per MMBtu, respectively. In estimating the present value of after-tax future net cash flows from proved oil and natural gas reserves, the average oil prices were further adjusted by property for quality, transportation fees and regional price differentials, and the average natural gas prices were further adjusted by property for energy content, transportation and marketing fees and regional price differentials. | |||||||||||||
At March 31, 2013, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $13.7 million. The Company recorded an impairment charge of $21.2 million to its net capitalized costs and a deferred income tax credit of $7.5 million related to the full-cost ceiling limitation. These charges are reflected in the Company’s consolidated statement of operations for the year ended December 31, 2013. | |||||||||||||
At June 30, 2012, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $21.3 million. The Company recorded an impairment charge of $33.2 million to its net capitalized costs and a deferred income tax credit of $11.9 million related to the full-cost ceiling limitation. At September 30, 2012, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $2.3 million. The Company recorded an impairment charge of $3.6 million to its net capitalized costs and a deferred income tax credit of $1.3 million related to the full-cost ceiling limitation. At December 31, 2012, the Company’s net capitalized costs exceeded the full-cost center ceiling by $17.3 million. The Company recorded an impairment charge of $26.7 million to its net capitalized costs and a deferred income tax credit of $9.4 million related to the full-cost ceiling limitation. These charges for the second, third and fourth quarters of 2012 are reflected in the Company’s consolidated statement of operations for the year ended December 31, 2012. | |||||||||||||
At March 31, 2011, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $23.0 million. The Company recorded an impairment charge of $35.7 million to its net capitalized costs and a deferred income tax credit of $12.7 million related to the full-cost ceiling limitation. These charges are reflected in the Company’s consolidated statement of operations for the year ended December 31, 2011. | |||||||||||||
As a non-cash item, the full-cost ceiling impairment impacts the accumulated depletion and the net carrying value of the Company’s assets on its balance sheet, as well as the corresponding shareholders’ equity, but it has no impact on the Company’s net cash flows as reported. Changes in oil and natural gas production rates, oil and natural gas prices, reserves estimates, future development costs and other factors will determine the Company’s actual ceiling test computation and impairment analyses in future periods. | |||||||||||||
Capitalized costs of oil and natural gas properties are amortized using the unit-of-production method based upon production and estimates of proved reserves quantities. Unproved and unevaluated property costs are excluded from the amortization base used to determine depletion. Unproved and unevaluated properties are assessed for possible impairment on a periodic basis based upon changes in operating or economic conditions. This assessment includes consideration of the following factors, among others: the assignment of proved reserves, geological and geophysical evaluations, intent to drill, remaining lease term and drilling activity and results. Upon impairment, the costs of the unproved and unevaluated properties are immediately included in the amortization base. Exploratory dry holes are included in the amortization base immediately upon determination that the well is not productive. | |||||||||||||
Sales of oil and natural gas properties are accounted for as adjustments to net capitalized costs with no gain or loss recognized, unless such adjustments would significantly alter the relationship between net capitalized costs and proved reserves of oil and natural gas. All costs related to production activities and maintenance and repairs are expensed as incurred. Significant workovers that increase the properties’ reserves are capitalized. | |||||||||||||
Other property and equipment are recorded at historical cost. Computer equipment, furniture, software and other equipment are depreciated over their useful life (five to 10 years) using the straight-line method. Support equipment and facilities include the pipelines and salt water disposal systems owned by Longwood Gathering and Disposal Systems, LP and are depreciated over a 30-year useful life using the straight-line, mid-month convention method. Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. | |||||||||||||
Asset Retirement Obligations | |||||||||||||
The Company recognizes the fair value of an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The asset retirement obligation is recorded as a liability at its estimated present value, with an offsetting increase recognized in oil and natural gas properties or support equipment and facilities on the balance sheet. Periodic accretion of the discounted value of the estimated liability is recorded as an expense in the consolidated statement of operations. In general, the Company’s future asset retirement obligations relate to future costs associated with plugging and abandonment of its oil and natural gas wells, removal of equipment and facilities from leased acreage and returning such land to its original condition. The amounts recognized are based on numerous estimates and assumptions, including future retirement costs, future recoverable quantities of oil and natural gas, future inflation rates and the Company’s credit-adjusted risk-free interest rate. Revisions to the liability can occur due to changes in its estimate or if federal or state regulators enact new plugging and abandonment requirements. At the time of actual plugging and abandonment of its oil and natural gas wells, the Company includes any gain or loss associated with the operation in the amortization base to the extent that the actual costs are different from the estimated liability. | |||||||||||||
Derivative Financial Instruments | |||||||||||||
From time to time, the Company uses derivative financial instruments to mitigate its exposure to commodity price risk associated with oil, natural gas and natural gas liquids prices. These instruments consist of put and call options in the form of costless (or zero-cost) collars and swap contracts. Costless collars provide the Company with downside price protection through the purchase of a put option which is financed through the sale of a call option. Because the call option proceeds are used to offset the cost of the put option, these arrangements are initially “costless” to the Company. In the case of a costless collar, the put option and the call option have different fixed price components. In a swap contract, a floating price is exchanged for a fixed price over a specified period, providing downside price protection. The Company’s derivative financial instruments are recorded on the balance sheet as either an asset or a liability measured at fair value. The Company has elected not to apply hedge accounting for its existing derivative financial instruments, and as a result, the Company recognizes the change in derivative fair value between reporting periods currently in its consolidated statement of operations (see Note 11). The fair value of the Company’s derivative financial instruments is determined using industry-standard models that consider various inputs including: (i) quoted forward prices for commodities, (ii) time value and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Realized gains and realized losses from the settlement of derivative financial instruments and unrealized gains and unrealized losses from valuation changes in the remaining unsettled derivative financial instruments are reported under “Revenues” in the consolidated statement of operations. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company follows the sales method of accounting for its oil, natural gas and natural gas liquids revenues, whereby it recognizes revenue, net of royalties, on all oil, natural gas and natural gas liquids sold to purchasers regardless of whether the sales are proportionate to its ownership in the property. Under this method, revenue is recognized at the time oil, natural gas and natural gas liquids are produced and sold, and the Company accrues for revenue earned but not yet received. | |||||||||||||
For the year ended December 31, 2013, the Company had five significant purchasers that accounted for approximately 87% of its total oil, natural gas and natural gas liquids revenues. For the years ended December 31, 2012 and 2011, the Company had three significant purchasers that accounted for approximately 74% and 60%, respectively, of its total oil, natural gas and natural gas liquids revenues. Due to the nature of the markets for oil, natural gas and natural gas liquids, the Company does not believe the loss of any one purchaser would have a material adverse impact on the Company’s financial position, results of operations or cash flows for any significant period of time. At December 31, 2013, 2012 and 2011, approximately 81%, 67% and 52%, respectively, of the Company’s accounts receivable, including joint interest billings, related to these purchasers. | |||||||||||||
Stock-Based Compensation | |||||||||||||
Effective January 1, 2012, the Board of Directors adopted the 2012 Long-Term Incentive Plan (the “2012 Incentive Plan”). The 2012 Incentive Plan was also approved by the Company’s shareholders at its Annual Meeting of Shareholders on June 7, 2012. During 2013 and 2012, all stock option awards granted under the 2012 Incentive Plan were non-qualified options and the associated compensation expense is recognized over the vesting period, which is typically three or four years. All stock option awards granted in 2013 and 2012 are classified as equity instruments due to the methods of exercise specified in the 2012 Incentive Plan. Compensation expense for restricted stock and restricted stock unit grants awarded in 2013 and 2012 was recognized immediately or over the vesting period, which is typically one to four years. | |||||||||||||
The Company did not grant any stock option awards in 2011. Prior to 2011, all stock option awards were granted under the 2003 Stock and Incentive Plan (the “2003 Plan”), and since November 22, 2010, these awards have been accounted for as liability instruments. No additional stock-based compensation will be awarded under the 2003 Plan. Non-qualified stock option grants awarded under the 2003 Plan typically vested upon issuance, while incentive stock option grants awarded under the 2003 Plan typically vest over four years, and the associated compensation expense is recognized on a straight-line basis over the vesting period. Compensation expense for restricted stock grants awarded under the 2003 Plan was recognized immediately or over the vesting period, which was typically three years. | |||||||||||||
At December 31, 2013, 2012 and 2011, the Company used the fair value method to measure and recognize the liability and equity associated with its outstanding stock options. | |||||||||||||
Prior to November 22, 2010, all of the Company’s then-outstanding stock options were classified as equity instruments, with all stock-based compensation expense measured on the date of grant and recognized over the vesting period, if any. On November 22, 2010, the Company changed its method of accounting for its then-outstanding stock options, reclassifying all of its then-outstanding stock options from equity to liability instruments. This change was made as a result of the Company purchasing shares from certain of its employees to assist them in the exercise of outstanding options of the Company’s Class A common stock. At December 31, 2013, the Company continues to account for all outstanding stock options granted under the 2003 Plan as liability instruments. | |||||||||||||
The Company’s consolidated statements of operations for the years ended December 31, 2013, 2012 and 2011 include a stock-based compensation (non-cash) expense of $3.9 million, $0.1 million and $2.4 million, respectively. This stock-based compensation expense includes common stock issuances and restricted stock units expense totaling $0.3 million, $0.1 million and $0.2 million in 2013, 2012 and 2011, respectively, paid to members of the Board of Directors and advisors as compensation for their services to the Company. | |||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes using the asset and liability approach for financial accounting and reporting. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and provides a valuation allowance for the portion of any deferred tax assets where the likelihood of realizing an income tax benefit in the future does not meet the more likely than not criteria for recognition. | |||||||||||||
The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Management believes that the material positions taken by the Company would more likely than not be sustained by examination. At December 31, 2013 and 2012, the Company had not established any reserves for, nor recorded any unrecognized tax benefits related to, uncertain tax positions. | |||||||||||||
When necessary, the Company would include interest assessed by taxing authorities in “Interest expense” and penalties related to income taxes in “Other expense” on its consolidated statements of operations. The Company did not record any interest or penalties related to income tax for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
Earnings Per Common Share | |||||||||||||
The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share, which includes the effect of all potentially dilutive securities, unless their impact is anti-dilutive. | |||||||||||||
Prior to consummation of the Company’s initial public offering (the “Initial Public Offering”) (see Note 10) in February 2012, the Company had issued two classes of common stock, Class A and Class B. The holders of the Class B shares were entitled to be paid cumulative dividends at a per share rate of $0.26-2/3 annually out of funds legally available for the payment of dividends. These dividends were accrued and paid quarterly. Dividends declared during 2012 totaled $27,643. Dividends declared during 2011 totaled $274,853. Class B dividends declared during the fourth quarter of 2011 and the first quarter of 2012 were paid during the first quarter of 2012 totaling $96,356. As of December 31, 2013, the Company has not paid any dividends to holders of the Class A shares. Concurrent with the completion of the Initial Public Offering, all 1,030,700 shares of the Company’s Class B common stock were converted to Class A common stock on a one-for-one basis. The Class A common stock is now referred to as the “common stock.” | |||||||||||||
The following are reconciliations of the numerators and denominators used to compute the Company’s basic and diluted distributed and undistributed earnings per common share as reported for the years ended December 31, 2013, 2012 and 2011 (in thousands, except per share data). | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income (loss) — numerator | |||||||||||||
Net income (loss) | $ | 45,094 | $ | (33,261 | ) | $ | (10,309 | ) | |||||
Less dividends to Class B shareholders — distributed earnings | — | (28 | ) | (275 | ) | ||||||||
Undistributed earnings (loss) | $ | 45,094 | $ | (33,289 | ) | $ | (10,584 | ) | |||||
Weighted average common shares outstanding — denominator | |||||||||||||
Basic | |||||||||||||
Class A | 58,777 | 53,852 | 41,687 | ||||||||||
Class B | — | 105 | 1,031 | ||||||||||
Total | 58,777 | 53,957 | 42,718 | ||||||||||
Diluted | |||||||||||||
Class A | |||||||||||||
Weighted average common shares outstanding for basic earnings (loss) per share | 58,777 | 53,852 | 41,687 | ||||||||||
Dilutive effect of options and restricted stock units | 152 | — | — | ||||||||||
Class A weighted average common shares outstanding — diluted | 58,929 | 53,852 | 41,687 | ||||||||||
Class B | |||||||||||||
Weighted average common shares outstanding — no associated dilutive shares | — | 105 | 1,031 | ||||||||||
Total diluted weighted average common shares outstanding | 58,929 | 53,957 | 42,718 | ||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Earnings (loss) per common share | |||||||||||||
Basic | |||||||||||||
Class A | |||||||||||||
Distributed earnings | $ | — | $ | — | $ | — | |||||||
Undistributed earnings (loss) | $ | 0.77 | $ | (0.62 | ) | $ | (0.25 | ) | |||||
Total | $ | 0.77 | $ | (0.62 | ) | $ | (0.25 | ) | |||||
Class B | |||||||||||||
Distributed earnings | $ | — | $ | 0.27 | $ | 0.27 | |||||||
Undistributed earnings (loss) | $ | — | $ | (0.62 | ) | $ | (0.25 | ) | |||||
Total | $ | — | $ | (0.35 | ) | $ | 0.02 | ||||||
Diluted | |||||||||||||
Class A | |||||||||||||
Distributed earnings | $ | — | $ | — | $ | — | |||||||
Undistributed earnings (loss) | $ | 0.77 | $ | (0.62 | ) | $ | (0.25 | ) | |||||
Total | $ | 0.77 | $ | (0.62 | ) | $ | (0.25 | ) | |||||
Class B | |||||||||||||
Distributed earnings | $ | — | $ | 0.27 | $ | 0.27 | |||||||
Undistributed earnings (loss) | $ | — | $ | (0.62 | ) | $ | (0.25 | ) | |||||
Total | $ | — | $ | (0.35 | ) | $ | 0.02 | ||||||
A total of 1,067,069 and 1,024,500 options to purchase shares of the Company’s Class A common stock and 162,368 and zero restricted stock units were excluded from the calculations above for the years ended December 31, 2012 and 2011, respectively, because their effects were anti-dilutive. Additionally, 305,807 restricted shares, which are participating securities, were excluded from the calculations above for the year ended December 31, 2012 as the security holders do not have the obligation to share in the losses of the Company. There were no participating securities at December 31, 2011. | |||||||||||||
Fair Value Measurements | |||||||||||||
The Company measures and reports certain assets and liabilities on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company follows Financial Accounting Standards Board (“FASB”) guidance establishing a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. | |||||||||||||
Credit Risk | |||||||||||||
The Company’s cash is held in financial institutions and at times these amounts exceed the insurance limits of the Federal Deposit Insurance Corporation. Management believes, however, that the Company’s counterparty risks are minimal based on the reputation and history of the institutions selected. | |||||||||||||
The Company uses derivative financial instruments to mitigate its exposure to oil, natural gas and natural gas liquids price volatility. These transactions expose the Company to potential credit risk from its counterparties. Accounts receivable constitute the principal component of additional credit risk to which the Company may be exposed. The Company believes that any credit risk posed is insignificant and is offset by the creditworthiness of its customer base and industry partners. | |||||||||||||
Risks and Uncertainties | |||||||||||||
As an oil and natural gas exploration and production company focused on finding and developing its own prospects and reserves, the Company’s success is highly dependent on the results of its exploration and development program. Exploration activities involve numerous risks, including the risk that no commercially productive oil or natural gas reserves will be discovered. In addition, there are uncertainties as to the future costs or timing of drilling, completing and producing wells. Poor results from the Company’s exploration and development activities could limit the Company’s ability to replace and grow reserves and materially and adversely affect the Company’s financial position, results of operations and cash flows. | |||||||||||||
Estimating oil and natural gas reserves is complex and is inexact because of the numerous uncertainties inherent in the process. The process relies on interpretations of available geological, geophysical, petrophysical, engineering and production data. The extent, quality and reliability of both the data and the associated interpretations of that data can vary. The process also requires certain economic assumptions, including, but not limited to, oil and natural gas prices, drilling, completion and operating expenses, capital expenditures and taxes. Actual future production, oil and natural gas prices, revenues, taxes, development expenditures, operating expenses and quantities of recoverable oil and natural gas most likely will vary from the Company’s estimates. Any significant variance could materially and adversely affect the Company’s future reserves estimates, financial position, results of operations and cash flows. | |||||||||||||
Historically, the market for oil, natural gas and natural gas liquids has experienced significant price fluctuations, and this has been particularly evident in recent years. Oil, natural gas and natural gas liquids prices are impacted by supply and demand, both domestic and international, seasonal variations caused by changing weather conditions, political conditions, governmental regulations, the availability, proximity and capacity of gathering, processing and transportation systems for natural gas and natural gas liquids and numerous other factors. Increases or decreases in prices received could have a significant and material impact on the Company’s future reserves estimates, financial position, results of operations and cash flows. | |||||||||||||
To mitigate its exposure to fluctuations in oil, natural gas and natural gas liquids prices, the Company, from time to time, enters into hedging arrangements with respect to a portion of its oil, natural gas and natural gas liquids production. Decisions as to whether, at what price and what production volumes to hedge are difficult and depend on market conditions and the Company’s forecast of future production and commodity prices, and the Company may not always employ the optimal hedging strategy. | |||||||||||||
The federal, state and local governments in the areas in which the Company operates or has assets impose taxes on the oil and natural gas products sold, and sales and use taxes are charged on significant portions of the Company’s drilling, completion and operating costs. Many states have raised state taxes on energy sources or state taxes associated with the extraction of hydrocarbons, and additional increases may occur. In addition, there has been a significant amount of discussion by legislators and presidential administrations concerning a variety of energy tax proposals. President Obama has proposed sweeping changes in federal laws on the income taxation of small oil and natural gas exploration and production companies like the Company. Among other issues, President Obama has proposed to eliminate allowing small oil and natural gas companies to deduct intangible drilling costs as incurred and percentage depletion. Changes to tax laws could materially and adversely affect the Company’s future financial position, results of operations and cash flows. | |||||||||||||
Recent Accounting Pronouncements | |||||||||||||
Balance Sheet. In January 2013, the FASB issued Accounting Standards Update, or ASU, 2013-01, Balance Sheet. The ASU clarifies the scope of ASU 2011-11 to limit the application of ASU 2011-11 to derivatives accounted for in accordance with Accounting Standards Codification, or ASC, 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. The Company adopted ASU 2013-01 effective January 1, 2013, together with the adoption of ASU 2011-01. The adoption of ASUs 2013-01 and 2011-11 did not have a material effect on the Company’s consolidated financial statements, but did require certain additional disclosures (see Note 11). | |||||||||||||
Balance Sheet. In December 2011, the FASB issued ASU 2011-11, Balance Sheet. The requirements amend the disclosure requirements to offsetting in ASC 210-20-50. The amendments require enhanced disclosures by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either ASC 210-20-45 or ASC 815-10-45 or (2) subject to an enforceable master netting agreement or similar agreement, irrespective of whether they are offset in accordance with either ASC 210-20-45 or ASC 815-10-45. The Company adopted ASU 2011-11 effective January 1, 2013, together with the adoption of ASU 2013-01. The adoption of ASUs 2011-11 and 2013-01 did not have a material effect on the Company’s consolidated financial statements, but did require certain additional disclosures (see Note 11). |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||||||||||||||
The following table presents a summary of the Company’s property and equipment balances as of December 31, 2013 and 2012 (in thousands). | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Oil and natural gas properties | |||||||||||||||||||||
Evaluated (subject to amortization) | $ | 1,090,656 | $ | 763,527 | |||||||||||||||||
Unproved and unevaluated (not subject to amortization) | |||||||||||||||||||||
Incurred in 2013 | 82,628 | — | |||||||||||||||||||
Incurred in 2012 | 23,341 | 36,488 | |||||||||||||||||||
Incurred in 2011 | 10,982 | 24,138 | |||||||||||||||||||
Incurred in 2010 and prior | 77,355 | 89,049 | |||||||||||||||||||
Total unproved and unevaluated | 194,306 | 149,675 | |||||||||||||||||||
Total oil and natural gas properties | 1,284,962 | 913,202 | |||||||||||||||||||
Accumulated depletion | (463,091 | ) | (344,609 | ) | |||||||||||||||||
Net oil and natural gas properties | 821,871 | 568,593 | |||||||||||||||||||
Other property and equipment | |||||||||||||||||||||
Computer equipment | 1,044 | 834 | |||||||||||||||||||
Furniture | 1,057 | 793 | |||||||||||||||||||
Software | 1,456 | 1,355 | |||||||||||||||||||
Other equipment | 252 | 196 | |||||||||||||||||||
Leasehold improvements | 991 | 644 | |||||||||||||||||||
Support equipment and facilities | 25,110 | 23,436 | |||||||||||||||||||
Total other property and equipment | 29,910 | 27,258 | |||||||||||||||||||
Accumulated depreciation | (5,904 | ) | (4,761 | ) | |||||||||||||||||
Net other property and equipment | 24,006 | 22,497 | |||||||||||||||||||
Net property and equipment | $ | 845,877 | $ | 591,090 | |||||||||||||||||
The following table provides a breakdown of the Company’s unproved and unevaluated property costs not subject to amortization as of December 31, 2013 and the year in which these costs were incurred (in thousands). | |||||||||||||||||||||
Description | 2013 | 2012 | 2011 | 2010 and | Total | ||||||||||||||||
prior | |||||||||||||||||||||
Costs incurred for | |||||||||||||||||||||
Property acquisition | $ | 66,582 | $ | 22,944 | $ | 9,050 | $ | 77,355 | $ | 175,931 | |||||||||||
Exploration wells | 12,901 | 247 | 1,932 | — | 15,080 | ||||||||||||||||
Development wells | 3,145 | — | — | — | 3,145 | ||||||||||||||||
Capitalized interest | — | 150 | — | — | 150 | ||||||||||||||||
Total | $ | 82,628 | $ | 23,341 | $ | 10,982 | $ | 77,355 | $ | 194,306 | |||||||||||
Property acquisition costs primarily include leasehold costs paid to secure oil and natural gas mineral leases, but may also include broker and legal expenses, geological and geophysical expenses and capitalized internal costs associated with developing oil and natural gas prospects on these properties. Property acquisition costs are transferred into the amortization base on an ongoing basis as these properties are evaluated and proved reserves are established or impairment is determined. Unproved and unevaluated properties are assessed for possible impairment on a periodic basis based upon changes in operating or economic conditions. | |||||||||||||||||||||
Property acquisition costs incurred in 2013 were related primarily to the Company’s leasehold acquisitions in the Wolfcamp and Bone Spring plays in the Permian Basin in Southeast New Mexico and West Texas, but also include costs associated with additional leasehold acquisitions in the Eagle Ford shale play in South Texas and the Haynesville shale play in Northwest Louisiana and East Texas. | |||||||||||||||||||||
Property acquisition costs incurred in 2012 were related primarily to the Company’s leasehold acquisitions in the Eagle Ford shale play in South Texas and the Wolfcamp and Bone Spring plays in the Permian Basin in Southeast New Mexico and West Texas. Property acquisition costs incurred in 2011 were related primarily to the Company’s leasehold acquisitions in the Eagle Ford shale play in South Texas. These costs are associated with acreage for which proved reserves have yet to be assigned. As the Company drills wells and assigns proved reserves to these properties or determines that certain portions of this acreage, if any, cannot be assigned proved reserves, portions of these costs are transferred to the amortization base. The Company estimates that the evaluation of most of these properties and the inclusion of their costs in the amortization base should be completed within three to five years or less. | |||||||||||||||||||||
Property acquisition costs incurred in 2010 and prior years were related primarily to the Company’s leasehold acquisitions in the Eagle Ford shale play in South Texas and in the Haynesville shale play in Northwest Louisiana. These costs are associated with acreage for which proved reserves have yet to be assigned. Almost all of these costs are associated with properties which are held by production and have no near-term expiration risk. As the Company drills wells and assigns proved reserves to these properties or determines that certain portions of this acreage, if any, cannot be assigned proved reserves, portions of these costs are transferred to the amortization base. The Company estimates that evaluation of most of these properties and the inclusion of their costs in the amortization base should be completed within three to five years or less. | |||||||||||||||||||||
Costs excluded from amortization also include those costs associated with exploration and development wells in progress or awaiting completion at year-end. These costs are transferred into the amortization base on an ongoing basis as these wells are completed and proved reserves are established or confirmed. These costs totaled $16.0 million for 2013. Of this total, $12.9 million was associated with exploration wells and $3.1 million was associated with development wells. The Company anticipates that the entire $16.0 million associated with these wells in progress at December 31, 2013 will be transferred to the amortization base during 2014. At December 31, 2013, there were $2.2 million in exploratory well costs excluded from amortization that were incurred in years prior to 2013, all associated with the Company’s initial exploration well in the Meade Peake shale in Southwest Wyoming. The Company completed the horizontal lateral section of this exploratory well during the fall of 2013, but initial testing was still in progress at December 31, 2013. The Company plans to finalize the testing of this well in 2014 and expects that all exploration costs incurred on this well will be transferred to the amortization base during 2014. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||||||
ASSET RETIREMENT OBLIGATIONS | ' | ||||||||
The following table summarizes the changes in the Company’s asset retirement obligations for the years ended December 31, 2013 and 2012 (in thousands). | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Beginning asset retirement obligations | $ | 5,769 | $ | 4,270 | |||||
Liabilities incurred during period | 936 | 1,243 | |||||||
Liabilities settled during period | (103 | ) | — | ||||||
Revisions in estimated cash flows | 534 | — | |||||||
Accretion expense | 348 | 256 | |||||||
Ending asset retirement obligations | 7,484 | 5,769 | |||||||
Less: current asset retirement obligations (1) | (175 | ) | (660 | ) | |||||
Long-term asset retirement obligations | $ | 7,309 | $ | 5,109 | |||||
__________________ | |||||||||
-1 | Included in accrued liabilities in the Company’s consolidated balance sheet at December 31, 2013 and 2012. |
Asset_Sales_and_Impairment
Asset Sales and Impairment | 12 Months Ended |
Dec. 31, 2013 | |
Asset Sales and Impairment [Abstract] | ' |
ASSET SALES AND IMPAIRMENT | ' |
In March 2013, the Company recorded an impairment to some of its equipment held in inventory following a determination that the current market value of the equipment, consisting primarily of pipe, was less than the cost. The carrying value was reduced by $192,000 on the consolidated balance sheet, and a corresponding charge was recorded to the consolidated statement of operations for the year ended December 31, 2013. | |
In December 2012, the Company recorded an impairment to reduce the remaining balance of its drilling rig parts held in inventory to zero following a determination that there was no current market for these parts. The carrying value of the inventory was reduced to zero and a charge of $425,000 was recorded to the consolidated statement of operations. In addition, the Company recorded a loss of approximately $60,000 on certain other equipment that was sold during 2012. | |
In December 2011, the Company recorded an impairment to some of its equipment held in inventory following a determination that the current market value of the equipment, consisting primarily of drilling rig parts, was less than the cost. The carrying value of the inventory was reduced by $17,500 on the consolidated balance sheet, and a corresponding charge was recorded to the consolidated statement of operations. In December 2011, the Company also recorded an impairment to some of its equipment held in inventory following a determination that the current market value of the equipment, consisting primarily of pipe and other equipment, was less than the cost. The carrying value of the inventory was reduced by $22,276 on the consolidated balance sheet, and a corresponding charge was recorded to the consolidated statement of operations. In addition, the Company recorded a loss of $113,757 on certain other equipment that was sold during 2011. |
Revolving_Credit_Agreement
Revolving Credit Agreement | 12 Months Ended | |
Dec. 31, 2013 | ||
Debt Disclosure [Abstract] | ' | |
REVOLVING CREDIT AGREEMENT | ' | |
REVOLVING CREDIT AGREEMENT | ||
On September 28, 2012, the Company amended and restated its revolving credit agreement. This third amended and restated credit agreement (the “Credit Agreement”) increased the maximum facility amount from $400.0 million to $500.0 million. The Credit Agreement matures December 29, 2016. MRC Energy Company is the borrower under the Credit Agreement. Borrowings are secured by mortgages on substantially all of the Company's oil and natural gas properties and by the equity interests of all of MRC Energy Company’s wholly-owned subsidiaries, which are also guarantors. In addition, all obligations under the Credit Agreement are guaranteed by Matador, the parent corporation. Various commodity hedging agreements with certain of the lenders under the Credit Agreement (or affiliates thereof) are also secured by the collateral of and guaranteed by the eligible subsidiaries of MRC Energy Company. | ||
The borrowing base under the Credit Agreement is determined semi-annually as of May 1 and November 1 by the lenders based primarily on the estimated value of the Company’s proved oil and natural gas reserves at December 31 and June 30 of each year, respectively. Both the Company and the lenders may request an unscheduled redetermination of the borrowing base once each between scheduled redetermination dates. During the first quarter of 2013, the lenders completed their review of the Company's proved oil and natural gas reserves at December 31, 2012, and on March 11, 2013, the borrowing base was increased from $215.0 million to $255.0 million. In connection with this borrowing base redetermination, the conforming borrowing base was increased to $220.0 million. At that time, the Company also amended the Credit Agreement to include Capital One, N.A., BMO Harris Financing, Inc. (Bank of Montreal) and Iberia Bank in its lending group, which also includes Royal Bank of Canada (RBC), as administrative agent, Comerica Bank, Citibank, N.A., The Bank of Nova Scotia and SunTrust Bank. This March 2013 redetermination constituted the regularly scheduled May 1 redetermination. In late April 2013, the Company requested an unscheduled redetermination of the borrowing base, and on June 4, 2013, the borrowing base was increased from $255.0 million to $280.0 million, and the conforming borrowing base was increased to $245.0 million. On August 7, 2013, the borrowing base under the Credit Agreement was increased to $350.0 million and the conforming borrowing base was increased to $275.0 million. At that time, the Company amended the Credit Agreement to provide that the borrowing base would automatically be reduced to the conforming borrowing base at the earlier of (i) June 30, 2014 or (ii) concurrent with the issuance by the Company of senior unsecured notes in an amount greater than or equal to $10.0 million. This August 2013 redetermination constituted the regularly scheduled November 1 redetermination. | ||
During the first quarter of 2014, the lenders completed their review of the Company's estimated total proved oil and natural gas reserves at December 31, 2013, and as a result, on March 12, 2014, the borrowing base under the Credit Agreement was increased to $385.0 million, and the conforming borrowing base was increased to $310.0 million. At that time, Wells Fargo Bank, N.A. replaced Capital One, N.A., in the Company’s lending group, and the Company amended the Credit Agreement to provide that the borrowing base will automatically be reduced to the conforming borrowing base at the earlier of (i) June 30, 2015 or (ii) concurrent with the issuance by the Company of senior unsecured notes in an amount greater than or equal to $10.0 million. The Credit Agreement was also amended to eliminate the current ratio covenant and to increase the debt to EBITDA ratio covenant, which is defined as total debt outstanding divided by a rolling four quarter EBITDA calculation, to 4.25 or less. In addition, the interest rate charged to the Company based on its outstanding level of borrowings was reduced by 0.25% across the borrowing grid as a result of this amendment to the Credit Agreement. This March 2014 redetermination constituted the regularly scheduled May 1 redetermination. The Company may request one additional unscheduled redetermination of its borrowing base prior to the next scheduled redetermination. The Company expects additional increases to the borrowing base primarily as a result of anticipated increases in its proved oil and natural gas reserves, and particularly its proved developed oil and natural gas reserves. | ||
In the event of a borrowing base increase, the Company is required to pay a fee to the lenders equal to a percentage of the amount of the increase, which is determined based on market conditions at the time of the borrowing base increase. If, upon a redetermination or the automatic reduction of the borrowing base to the conforming borrowing base, the borrowing base were to be less than the outstanding borrowings under the Credit Agreement at any time, the Company would be required to provide additional collateral satisfactory in nature and value to the lenders to increase the borrowing base to an amount sufficient to cover such excess or to repay the deficit in equal installments over a period of six months. | ||
In connection with the March, June and August 2013 borrowing base redeterminations, the Company incurred $1.1 million of additional deferred loan costs. These costs were included with the remaining unamortized balance of the deferred loan costs incurred previously. As a result, total deferred loan costs were $2.1 million at December 31, 2013, and these costs are being amortized over the term of the Credit Agreement, which approximates amortization of these costs using the effective interest method. The Company incurred an additional $0.8 million of deferred loan costs associated with the March 2014 borrowing base redetermination. | ||
On September 12, 2013, using a portion of the net proceeds from the Company's public equity offering, the Company repaid $130.0 million of its outstanding borrowings under the Credit Agreement. At December 31, 2013, the Company had $200.0 million in borrowings outstanding under the Credit Agreement and approximately $0.3 million in outstanding letters of credit issued pursuant to the Credit Agreement. At December 31, 2013, the Company's outstanding borrowings bore interest at an effective interest rate of approximately 3.3% per annum. From January 1, 2014 through March 13, 2014, the Company borrowed an additional $50.0 million under the Credit Agreement to finance a portion of its working capital requirements and capital expenditures and the acquisition of additional leasehold interests. At March 13, 2014, the Company had $250.0 million in borrowings outstanding under the Credit Agreement and approximately $0.3 million in outstanding letters of credit issued pursuant to the Credit Agreement. | ||
Under the terms of the Credit Agreement as of December 31, 2013 and until the March 12, 2014 amendment described above, if the Company borrowed funds as a base rate loan, such borrowings bore interest at a rate equal to the higher of (i) the prime rate for such day or (ii) the Federal Funds Effective Rate on such day, plus 0.50% or (iii) the daily adjusting LIBOR rate plus 1.0% plus, in each case, an amount from 0.75% to 3.00% of such outstanding loan depending on the level of borrowings under the agreement. If the Company borrowed funds as a Eurodollar loan, such borrowings bore interest at a rate equal to (i) the quotient obtained by dividing (A) the LIBOR rate by (B) a percentage equal to 100% minus the maximum rate during such interest calculation period at which RBC is required to maintain reserves on Eurocurrency Liabilities (as defined in Regulation D of the Board of Governors of the Federal Reserve System) plus (ii) an amount from 1.75% to 4.00% of such outstanding loan depending on the level of borrowings under the Credit Agreement. The interest period for Eurodollar borrowings may be one, two, three or six months as designated by the Company. A commitment fee of 0.375% to 0.50%, depending on the unused availability under the Credit Agreement, is also paid quarterly in arrears. The Company includes this commitment fee, any amortization of deferred financing costs (including origination, borrowing base increase and amendment fees) and annual agency fees as interest expense and in its interest rate calculations and related disclosures. | ||
At December 31, 2013, the key financial covenants under the Credit Agreement required the Company to maintain (1) a current ratio, which is defined as consolidated total current assets plus the unused availability under the Credit Agreement divided by consolidated total current liabilities, of 1.0 or greater measured at the end of each fiscal quarter beginning December 31, 2014 and (2) a debt to EBITDA ratio, which is defined as total debt outstanding divided by a rolling four quarter EBITDA calculation, of 4.00 or less. | ||
Subject to certain exceptions, the Credit Agreement contains various covenants that limit the Company's ability to take certain actions, including, but not limited to, the following: | ||
• | incur indebtedness or grant liens on any of the Company's assets; | |
• | enter into commodity hedging agreements; | |
• | declare or pay dividends, distributions or redemptions; | |
• | merge or consolidate; | |
• | make any loans or investments; | |
• | engage in transactions with affiliates; and | |
• | engage in certain asset dispositions, including a sale of all or substantially all of the Company's assets. | |
If an event of default exists under the Credit Agreement, the lenders will be able to accelerate the maturity of the borrowings and exercise other rights and remedies. Events of default include, but are not limited to, the following events: | ||
• | failure to pay any principal or interest on the notes or any reimbursement obligation under any letter of credit when due or any fees or other amounts within certain grace periods; | |
• | failure to perform or otherwise comply with the covenants and obligations in the Credit Agreement or other loan documents, subject, in certain instances, to certain grace periods; | |
• | bankruptcy or insolvency events involving the Company or its subsidiaries; and | |
• | a change of control, as defined in the Credit Agreement. | |
At December 31, 2013, the Company believes that it was in compliance with the terms of its Credit Agreement. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
eferred tax assets and liabilities are the result of temporary differences between the financial statement carrying values and the tax bases of assets and liabilities. The Company’s net deferred tax position as of December 31, 2013 and 2012, respectively, is as follows (in thousands). | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets | |||||||||||||
Property and equipment | $ | 62 | $ | 233 | |||||||||
Unrealized loss on derivatives | 965 | — | |||||||||||
Other | 609 | 869 | |||||||||||
Total current deferred tax assets | 1,636 | 1,102 | |||||||||||
Valuation allowance on current deferred tax assets | — | (202 | ) | ||||||||||
Total current deferred tax assets, net of valuation allowance | 1,636 | 900 | |||||||||||
Current deferred tax liabilities | |||||||||||||
Unrealized gain on derivatives | — | (1,311 | ) | ||||||||||
Net current deferred tax assets (liabilities) | $ | 1,636 | $ | (411 | ) | ||||||||
Non-current deferred tax assets | |||||||||||||
Unrealized loss on derivatives | $ | 28 | $ | — | |||||||||
Net operating loss carryforwards | 63,007 | 44,654 | |||||||||||
Alternative minimum tax carryforward | 7,064 | 6,660 | |||||||||||
Total non-current deferred tax assets | 70,099 | 51,314 | |||||||||||
Valuation allowance on non-current deferred tax assets | (30 | ) | (10,058 | ) | |||||||||
Total non-current deferred tax assets, net of valuation allowance | 70,069 | 41,256 | |||||||||||
Non-current deferred tax liabilities | |||||||||||||
Unrealized gain on derivatives | — | (262 | ) | ||||||||||
Property and equipment | (76,719 | ) | (36,363 | ) | |||||||||
Other | (4,279 | ) | (4,220 | ) | |||||||||
Total non-current deferred tax liabilities | (80,998 | ) | (40,845 | ) | |||||||||
Net non-current deferred tax (liabilities) assets | $ | (10,929 | ) | $ | 411 | ||||||||
The Company had an effective tax rate of 17.7% for the year ended December 31, 2013. Total income tax expense for the year ended December 31, 2013 differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income due primarily to (i) the reversal of a valuation allowance of approximately $8.9 million on the Company’s federal deferred tax assets at December 31, 2012, as the Company’s federal deferred tax liabilities exceeded its federal deferred tax assets for the year ended December 31, 2013, (ii) the reversal of a state valuation allowance of approximately $1.3 million as the Company now believes it will be able to utilize the state net operating losses prior to their expiration and (iii) the impact of permanent differences between book and taxable income. The Company reported a net loss for the years ended December 31, 2012 and 2011. | |||||||||||||
At December 31, 2013, the Company had net operating loss carryforwards of $171.3 million for federal income tax purposes and $3.1 million for state income tax purposes available to offset future taxable income, as limited by the applicable provisions, and which expire at various dates beginning December 31, 2027 for the federal net operating loss carryforwards. The state net operating loss carryforwards began expiring at various dates beginning December 31, 2013 for the state of New Mexico; however, the significant portion of the Company’s state net operating loss carryforwards expire beginning in 2027. | |||||||||||||
At March 31, 2013, the net capitalized costs of the Company’s oil and natural gas properties less related deferred income taxes exceeded the full-cost ceiling by $13.7 million. As a result, the Company recorded an impairment charge of $21.2 million to its net capitalized costs and a deferred income tax credit of $7.5 million for the three months ended March 31, 2013. The Company established a valuation allowance at September 30, 2012 and retained full valuation allowances of approximately$15.8 million at March 31, 2013 and $6.7 million at June 30, 2013 due to uncertainties regarding the future realization of the net deferred tax assets. | |||||||||||||
At June 30, 2012, the net capitalized costs of the Company’s oil and natural gas properties less related deferred income taxes exceeded the full-cost ceiling by $21.3 million. As a result, the Company recorded an impairment charge of $33.2 million to the net capitalized costs of its oil and natural gas properties and a deferred income tax credit of $11.9 million. At September 30, 2012, the net capitalized costs of the Company’s oil and natural gas properties less related deferred income taxes exceeded the full-cost ceiling by $2.3 million. As a result, the Company recorded an impairment charge of $3.6 million to the net capitalized costs of its oil and natural gas properties and a deferred income tax credit of $1.3 million. This deferred income tax credit exceeded the Company’s deferred tax liabilities at September 30, 2012. As a result, the Company established a valuation allowance of $2.4 million at September 30, 2012 due to uncertainties regarding the future realization of its deferred tax assets. At December 31, 2012, the net capitalized costs of the Company’s oil and natural gas properties less related deferred income taxes exceeded the full-cost ceiling by $17.3 million. As a result, the Company recorded an impairment charge of $26.7 million to the net capitalized costs of its oil and natural gas properties and a deferred income tax credit of $9.4 million. This deferred income tax credit exceeded the Company’s deferred tax liabilities at December 31, 2012. As a result, the Company increased the previously established valuation allowance by $7.9 million to maintain a full valuation allowance of $10.3 million against the Company’s net deferred tax assets. | |||||||||||||
At March 31, 2011, the Company recorded an impairment charge of $23.0 million to its net capitalized costs, net of a deferred income tax credit of $12.7 million related to the full-cost ceiling limitation. This deferred income tax credit exceeded the Company’s deferred tax liabilities at March 31, 2011. As a result, the Company established a valuation allowance at March 31, 2011 and retained a valuation allowance until the quarter ended December 31, 2011 due to uncertainties regarding the future realization of its deferred tax assets. At December 31, 2011, the Company assessed the valuation allowance and determined that the allowance was no longer required. | |||||||||||||
The income tax expense reconciled to the tax computed at the statutory federal rate for the years ended December 31, 2013, 2012 and 2011, respectively, is as follows (in thousands). | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current income tax provision (benefit) | |||||||||||||
State income tax | $ | — | $ | — | $ | (46 | ) | ||||||
Federal alternative minimum tax | 404 | — | — | ||||||||||
Net current income tax provision (benefit) | 404 | — | (46 | ) | |||||||||
Deferred income tax provision (benefit) | |||||||||||||
Federal tax expense at statutory rate (1) | 19,177 | (11,767 | ) | (5,319 | ) | ||||||||
Statutory depletion carryforward | — | — | 231 | ||||||||||
State income tax | 431 | (819 | ) | (435 | ) | ||||||||
Nondeductible expense | — | (122 | ) | 48 | |||||||||
Permanent differences (2) | 319 | 1,018 | — | ||||||||||
Federal alternative minimum tax | (404 | ) | — | — | |||||||||
Change in federal valuation allowance | (8,885 | ) | 10,260 | — | |||||||||
Change in state valuation allowance | (1,345 | ) | — | — | |||||||||
Net deferred income tax provision (benefit) | 9,293 | (1,430 | ) | (5,475 | ) | ||||||||
Total income tax provision (benefit) | $ | 9,697 | $ | (1,430 | ) | $ | (5,521 | ) | |||||
__________________ | |||||||||||||
-1 | The statutory federal tax rate was 35% for the year ended December 31, 2013 and 34% for the years ended December 31, 2012 and 2011. | ||||||||||||
-2 | Amount is primarily attributable to stock-based compensation. | ||||||||||||
The Company files a United States federal income tax return and several state tax returns, a number of which remain open for examination. The tax years open for examination for the federal tax return are 2010, 2011, 2012 and 2013. The tax years open for examination by the state of Texas are 2009, 2010, 2011, 2012 and 2013. The tax years open for examination by the state of New Mexico are 2010, 2011, 2012 and 2013. The tax years open for examination by the state of Louisiana are 2010, 2011, 2012 and 2013. As of December 31, 2013, the Company's 2009, 2010, 2011 and 2012 franchise tax returns are under examination by the state of Texas. This examination is in the preliminary stage and no additional income taxes or refunds of previous tax payments for these tax years have been recorded as a result of this examination at December 31, 2013. | |||||||||||||
The Company has evaluated all tax positions for which the statute of limitations remained open and believes that the material positions taken would more likely than not be sustained by examination. Therefore, at December 31, 2013, the Company had not established any reserves for, nor recorded any unrecognized benefits related to, uncertain tax positions. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | |||||||||||||||||||||||||||||
Stock Options, Restricted Stock, Restricted Stock Units, Stock and Performance Awards | |||||||||||||||||||||||||||||
In 2003 the Company’s Board of Directors and shareholders approved the 2003 Plan. The 2003 Plan, as amended, provided that a maximum of 3,481,569 shares of Class A common stock in the aggregate could be issued pursuant to options or restricted stock grants. The persons eligible to receive awards under the 2003 Plan included employees, directors, contractors or advisors of the Company. | |||||||||||||||||||||||||||||
Effective January 1, 2012, the Board of Directors adopted the 2012 Incentive Plan. The 2012 Incentive Plan was also approved by the Company’s shareholders at its Annual Meeting of Shareholders on June 7, 2012. The 2012 Incentive Plan provides for a maximum of 4,000,000 shares of common stock in the aggregate that may be issued by the Company pursuant to grants of stock options, restricted stock, stock appreciation rights, restricted stock units or other performance awards. The persons eligible to receive awards under the 2012 Incentive Plan include employees, directors, contractors or advisors of the Company. The primary purpose of the 2012 Incentive Plan is to attract and retain key employees, key contractors and outside directors and advisors of the Company. With the adoption of the 2012 Incentive Plan, the Company does not plan to make any future awards under the 2003 Plan, but the 2003 Plan will remain in place until all awards outstanding under that plan have been settled. | |||||||||||||||||||||||||||||
The 2003 Plan and the 2012 Incentive Plan are administered by the independent members of the Board of Directors, which determines the number of options or restricted shares to be granted, the effective dates, the terms of the grants and the vesting periods. The Company typically uses newly issued shares of common stock to satisfy option exercises or restricted share grants. All stock-based compensation awards granted during 2013 and 2012 were granted under the 2012 Incentive Plan and are equity-based awards for which the fair value is fixed at the grant date, while all stock-based compensation awards granted prior to January 1, 2012 were granted under the 2003 Plan and are liability-based awards for which the fair value is remeasured at every reporting period. | |||||||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||||||
Historically, stock option awards have been granted to purchase the Company’s common stock at an exercise price equal to the fair market value on the date of grant, a typical vesting period of three or four years and a typical maximum term of five or ten years. | |||||||||||||||||||||||||||||
Effective upon filing its initial Registration Statement with the SEC in August 2011, the Company adopted the fair value method and used an estimated fair value of $12.00 per share to measure and recognize the liability associated with its outstanding stock options. The Company recorded $1.1 million in additional general and administrative expenses during 2011 due to this change in the valuation method from the intrinsic value method to the fair value method. | |||||||||||||||||||||||||||||
The Company granted no stock option awards during the year ended December 31, 2011. The fair value of stock option awards outstanding under the 2003 Plan was estimated using the following weighted average assumptions at December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Stock option pricing model | Black Scholes Merton | Black Scholes Merton | Black Scholes Merton | ||||||||||||||||||||||||||
Expected option life | 2.44 years | 0.89 years | 1.04 years | ||||||||||||||||||||||||||
Risk-free interest rate | 0.69% | 0.25% | 0.37% | ||||||||||||||||||||||||||
Volatility | 51.51% | 54.28% | 61.41% | ||||||||||||||||||||||||||
Dividend yield | —% | —% | —% | ||||||||||||||||||||||||||
Estimated forfeiture rate | 0.79% | 0.70% | 1.04% | ||||||||||||||||||||||||||
The weighted average grant date fair value for stock option awards outstanding under the 2012 Incentive Plan was estimated using the following weighted average assumptions during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Stock option pricing model | Black Scholes Merton | Black Scholes Merton | |||||||||||||||||||||||||||
Expected option life | 4.0 years | 4.4 years | |||||||||||||||||||||||||||
Risk-free interest rate | 0.69% | 0.71% | |||||||||||||||||||||||||||
Volatility | 58.65% | 71.16% | |||||||||||||||||||||||||||
Dividend yield | —% | —% | |||||||||||||||||||||||||||
Estimated forfeiture rate | 6.37% | 5.46% | |||||||||||||||||||||||||||
Weighted average fair value of stock option awards granted during the year | $3.91 | $5.95 | |||||||||||||||||||||||||||
The Company estimated the future volatility of its common stock using the historical value of its peer group for a period of time commensurate with the expected term of the stock option due to the lack of historical trading data available for its common stock. The expected term was estimated using the simplified method outlined in Staff Accounting Bulletin Topic 14. The risk free interest rate is the rate for constant yield U.S. Treasury securities with a term to maturity that is consistent with the expected term of the award. | |||||||||||||||||||||||||||||
Summarized information about stock options outstanding at December 31, 2013 under the Company’s 2003 Plan and the 2012 Incentive Plan is as follows (in thousands, except price data). | |||||||||||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||||||||||
options | average | ||||||||||||||||||||||||||||
exercise price | |||||||||||||||||||||||||||||
Options outstanding at December 31, 2012 | 1,067 | $ | 10.19 | ||||||||||||||||||||||||||
Options granted | 874 | 8.78 | |||||||||||||||||||||||||||
Options exercised | (5 | ) | 7.77 | ||||||||||||||||||||||||||
Options forfeited | (59 | ) | 9.86 | ||||||||||||||||||||||||||
Options expired | (449 | ) | 10.3 | ||||||||||||||||||||||||||
Options outstanding at December 31, 2013 | 1,428 | $ | 9.32 | ||||||||||||||||||||||||||
Options outstanding at | Options exercisable at | ||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2013 | ||||||||||||||||||||||||||||
Range of exercise prices | Shares | Weighted | Weighted | Shares | Weighted | ||||||||||||||||||||||||
outstanding | average | average | exercisable | average | |||||||||||||||||||||||||
remaining | exercise | exercise | |||||||||||||||||||||||||||
contractual | price | price | |||||||||||||||||||||||||||
life | |||||||||||||||||||||||||||||
$7.50 - $10.00 | 938 | 4.30 years | $ | 8.33 | 79 | $ | 8.9 | ||||||||||||||||||||||
$10.39 - $13.03 | 451 | 3.50 years | $ | 10.56 | 15 | $ | 11 | ||||||||||||||||||||||
$17.80 - $19.05 | 39 | 4.89 years | $ | 18.73 | — | $ | — | ||||||||||||||||||||||
At December 31, 2013, the aggregate intrinsic value was $13.3 million for outstanding options and $0.9 million for exercisable options, based on the Company’s quoted closing market price of $18.64 per share on that date. The remaining weighted average contractual term of exercisable options at December 31, 2013 was 5.97 years. | |||||||||||||||||||||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $36,000, $0.9 million and $0.2 million, respectively. The tax related benefit realized from the exercise of stock options totaled zero, zero and zero for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, the Company recognized $2.2 million, $(0.7) million and $2.1 million, respectively, in stock-based compensation expense attributable to stock options. At December 31, 2013, 2012 and 2011, the Company had recorded $1.2 million, $0.3 million and $0.3 million of long-term liabilities and $0.1 million, $0.1 million and $2.9 million of current liabilities, respectively, related to its outstanding liability-based stock options. The Company paid zero, zero and $0.1 million in settlement of liability-based awards for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
At December 31, 2013, the total remaining unrecognized compensation expense related to unvested stock options was approximately $4.1 million and the weighted average remaining requisite service period (vesting period) of all unvested stock options was 1.90 years. | |||||||||||||||||||||||||||||
The fair value of options vested during 2013, 2012 and 2011 was $0.3 million, $0.3 million and $1.0 million, respectively. | |||||||||||||||||||||||||||||
Restricted Stock, Restricted Stock Units and Common Stock | |||||||||||||||||||||||||||||
The Company has granted stock, restricted stock and restricted stock unit awards to employees, outside directors and advisors of the Company under the 2003 Plan and the 2012 Incentive Plan. The stock and restricted stock are issued upon grant, with the restrictions being removed upon vesting. The restricted stock units are issued upon vesting, unless the recipient makes an election to defer issuance for a term no longer than two years after vesting. No such elections were made with respect to the 2012 restricted stock unit awards; two directors elected to defer the issuance of their awards in 2013. All awards granted in 2013 were service based awards and vest over the service period which is one to four years. All restricted stock and restricted stock unit awards outstanding at December 31, 2013 were granted under the 2012 Incentive Plan. | |||||||||||||||||||||||||||||
The 2012 restricted stock awards included 116,841 shares of performance based restricted stock and 116,841 performance based restricted stock units with a combined weighted average fair value of $13.24 per combined share and unit. These awards vest based on the outcome of the Company’s total shareholder return over a three-year period beginning March 19, 2012 and ending April 15, 2015 as compared to a designated peer group. These awards may result in the vesting of an aggregate of up to 116,841 restricted stock units in addition to the 116,841 shares of restricted stock. If the performance conditions are not met, however, these awards may result in no performance based restricted stock vesting and no restricted stock units vesting. The fair value of these awards was estimated based on the most likely outcome of the award as determined by the Monte Carlo method. A total of 206,842 service based restricted stock awards were granted during the year ended December 31, 2012, with a weighted average fair value of $9.66 per share. Of these awards, 13,833 shares of restricted stock vested immediately upon grant, and the remaining restricted stock vests over the service period, which ranges from one year to a maximum of four years. A total of 54,166 service based restricted stock unit awards were granted during the year ended December 31, 2012, with a weighted average fair value of $10.04 per unit. No restricted stock awards or restricted stock unit awards were granted during the year ended December 31, 2011. | |||||||||||||||||||||||||||||
A summary of the non-vested restricted stock and restricted stock units as of December 31, 2013 is presented below (in thousands, except fair value). | |||||||||||||||||||||||||||||
Restricted Stock | Restricted Stock Units | ||||||||||||||||||||||||||||
Service Based | Performance Based | Service Based | Performance Based | ||||||||||||||||||||||||||
Non-vested restricted stock and | Shares | Weighted | Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||||||
restricted stock units | average | average | average | average | |||||||||||||||||||||||||
fair | fair | fair | fair | ||||||||||||||||||||||||||
value | value(1) | value | value(1) | ||||||||||||||||||||||||||
Non-vested at | 182 | $ | 9.72 | 110 | $ | 13.24 | 52 | $ | 10 | 110 | $ | — | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Granted | 378 | 9.07 | — | — | 51 | 11.31 | — | — | |||||||||||||||||||||
Vested | (1 | ) | 8.43 | — | — | (17 | ) | 10 | — | — | |||||||||||||||||||
Forfeited | (95 | ) | 8.57 | (10 | ) | 13.24 | — | — | (10 | ) | — | ||||||||||||||||||
Non-vested at | 464 | $ | 9.43 | 100 | $ | 13.24 | 86 | $ | 10.79 | 100 | $ | — | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||||
-1 | The fair value of these restricted stock units is reflected in the fair value of the performance based restricted stock, which was estimated based on the most likely outcome of the award as determined by the Monte Carlo method. | ||||||||||||||||||||||||||||
At December 31, 2013, the aggregate intrinsic value for the restricted stock and restricted stock units outstanding was $14.0 million as calculated based on the maximum number of shares of restricted stock, performance based restricted stock and restricted stock units vesting, using the stock price on December 31, 2013. | |||||||||||||||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, the Company recognized approximately $1.6 million, $0.7 million and $44,000, respectively, in stock-based compensation expense attributable to restricted stock and restricted stock units. | |||||||||||||||||||||||||||||
At December 31, 2013, the total remaining unrecognized compensation expense related to unvested restricted stock and restricted stock units was approximately $4.6 million and the weighted average remaining requisite service period (vesting period) of all non-vested restricted stock and restricted stock units was 1.82 years. | |||||||||||||||||||||||||||||
The fair value of restricted stock and restricted stock units vested during 2013, 2012 and 2011 was $182,000, $44,000 and $44,000, respectively. | |||||||||||||||||||||||||||||
The total tax benefit recognized for all stock-based compensation was $1.1 million, $0.3 million and $0.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, the Company issued shares of common stock to certain members of its Board of Directors. The Company also issued shares of common stock to certain outside advisors who do not meet the definition of employees under ASC 718. The Company used the fair value of the stock issued on the grant date to recognize the expense related to these awards. The Company recognized $0.1 million, $0.1 million and $0.2 million in stock-based compensation expense attributable to these awards for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
In October 2008, the Company’s Board of Directors approved the adoption of the Employee Option Exercise Loan Program (“Loan Program”), authorizing the Company to establish a loan program with a financial institution to assist its employees, directors and officers in the exercise of their outstanding options to purchase shares of Class A common stock, subject to certain conditions and restrictions outlined in the Loan Program. As part of the Loan Program, the Company provided the financial institution with a guaranty of repayment of the loan and made deposits of funds in certificates of deposit to secure its guaranty. Notwithstanding the guaranty, these loans were fully recourse obligations of each loan recipient, and each loan recipient agreed to indemnify and reimburse the Company in full for all liabilities incurred by the Company in the event of the recipient’s default on the loan. Each loan recipient also pledged all shares purchased from the Company with the loan proceeds to further secure his or her obligations to the Company in return for its guaranty. No director nor the Company’s Chairman and Chief Executive Officer participated in the Loan Program. | |||||||||||||||||||||||||||||
As of December 31, 2013 all of these loans had been repaid. As of December 31, 2012, the Company had secured the loans of four employees pursuant to this Loan Program in the aggregate amount of $0.2 million. The Company considered the fair value of this aggregate guaranty to be minimal and recorded no liability provision associated with this guaranty on its consolidated balance sheet in any reporting period presented. The Company’s Board of Directors terminated the Loan Program in April 2011, and the Company is no longer authorized to provide financial guaranties for additional loans. No new loans were guaranteed in 2011 prior to the termination of the Loan Program by the Board of Directors. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
EMPLOYEE BENEFIT PLANS | ' |
EMPLOYEE BENEFIT PLANS | |
401(k) Plan | |
Effective July 3, 2003, the Company established a defined contribution retirement plan. All full-time Company employees are eligible to join the plan the first day of the calendar month immediately following their date of employment. Each Participant may contribute up to the maximum allowable under the Internal Revenue Code. Each year, the Company makes a contribution to the plan which equals 3% of the employee’s annual compensation, referred to as the Employer’s Safe Harbor Non-Elective Contribution. The Company’s Safe Harbor match was approximately $0.2 million in each of 2013, 2012 and 2011. In addition, each year, the Company may make a discretionary matching contribution as well as additional contributions. The Company’s discretionary matching contributions totaled $0.3 million, $0.3 million and $0.2 million in 2013, 2012 and 2011, respectively. The Company made no additional discretionary contributions in any reporting period presented. |
Common_Stock
Common Stock | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
COMMON STOCK | ' |
COMMON STOCK | |
Dividends | |
At December 31, 2011, the Company had issued two classes of common stock, Class A and Class B. In February 2012, upon the consummation of the Company’s Initial Public Offering, the Class B shares were converted to Class A shares, which are now referred to as common stock. The holders of the Class B shares were entitled to be paid cumulative dividends at a per share rate of $0.26-2/3 annually out of funds legally available for the payment of dividends. These dividends were accrued and paid quarterly. Dividends declared and paid during 2012 were $27,643. Dividends declared during 2011 totaled $0.3 million. Dividends for the fourth quarter of 2011 were accrued and paid in January 2012. Dividends for the fourth quarter of 2010 were accrued and paid in January 2011. As of December 31, 2013, the Company has not paid any dividends to holders of the Class A shares. In addition, certain covenants in the Company’s Credit Agreement may limit the Company’s ability to pay dividends on its common stock. | |
Stock Offerings, Retirement and Issuances | |
In April 2013, the Company filed with the SEC a universal shelf registration statement on Form S-3 (the “Shelf Registration Statement”), which provides the Company with the ability to offer and sell up to $300.0 million of debt and equity securities, subject to market conditions and its capital needs. The SEC declared the Shelf Registration Statement effective on May 9, 2013. As of December 31, 2013, the Company had approximately $151.0 million of securities available for issuance under the Shelf Registration Statement. | |
On September 10, 2013, the Company completed an underwritten public offering of 9,775,000 shares of its common stock, including 1,275,000 shares issued pursuant to the underwriters’ exercise of their option to purchase additional shares. After deducting underwriting discounts, commissions and direct offering costs totaling approximately $7.4 million, the Company received net proceeds of approximately $141.7 million. The Company is using the net proceeds from this offering primarily to fund a portion of its capital expenditures, including for the addition of the third rig to its drilling program. The Company is also using the net proceeds from this offering to fund the acquisition of additional acreage in the Permian Basin, the Eagle Ford shale and the Haynesville shale. Pending such uses, the Company used a portion of the net proceeds to repay $130.0 million in outstanding borrowings under its Credit Agreement (see Note 6) in September 2013, which amounts may be reborrowed in accordance with the terms of that facility for, among other items, the uses contemplated above. The remaining $11.7 million of the offering net proceeds was used to fund working capital requirements. | |
On August 12, 2011, the Company filed a Form S-1 Registration Statement under the Securities Act of 1933 to commence the Initial Public Offering. The Company’s Registration Statement (File 333-176263), as amended, was declared effective by the SEC on February 1, 2012. The underwriters for the Company’s Initial Public Offering were RBC Capital Markets, LLC; Citigroup Global Markets, Inc.; Jefferies & Company, Inc.; Howard Weil Incorporated; Stifel, Nicolaus & Company, Incorporated; Simmons & Company International; Stephens Inc. and Comerica Securities, Inc. | |
On February 2, 2012, shares of the Company’s common stock began trading on the New York Stock Exchange under the symbol “MTDR” at an initial offering price of $12.00 per share. | |
Pursuant to its prospectus dated February 1, 2012, the Company offered 11,666,667 shares of its common stock for sale, and the selling shareholders offered 1,550,000 shares for sale. On February 7, 2012, the Company closed the Initial Public Offering and issued 11,666,667 shares of its common stock pursuant to the Initial Public Offering. | |
The Company and the selling shareholders granted the underwriters the right to purchase up to an additional 2,000,000 shares of the Company’s common stock at the initial offering price of $12.00 per share, less the underwriters’ discounts and commissions, for a period of 30 days following the Initial Public Offering to cover over-allotments, with the Company offering 700,000 shares and the selling shareholders offering 1,300,000 shares. On March 2, 2012, the underwriters exercised their option to purchase an additional 1,550,000 shares, including the purchase of 542,500 shares from the Company and the purchase of 1,007,500 shares from the selling shareholders. On March 7, 2012, the Company closed this transaction and issued 542,500 shares of its common stock pursuant to the underwriters’ exercise of the over-allotment. | |
Pursuant to the Initial Public Offering and the over-allotment, the Company issued a total of 12,209,167 shares of its common stock at $12.00 per share and received estimated net proceeds of approximately $133.6 million after deducting the underwriters’ discounts and commissions and the estimated legal, accounting and other fees associated with the offering. The Company did not receive any proceeds from the sale of shares of its common stock by the selling shareholders. On February 8, 2012, the Company used the net proceeds of the offering to repay the $123.0 million in borrowings then outstanding under its Credit Agreement in full. The Company used the remaining net proceeds of the offering to fund a portion of its 2012 capital expenditures. | |
Concurrent with the completion of the Initial Public Offering, all 1,030,700 outstanding shares of the Company’s Class B common stock were converted to Class A common stock on a one-for-one basis. In addition, in February 2012, the Company issued an additional 295,500 shares of its Class A common stock pursuant to the exercise of stock options and received net proceeds of $2.7 million. The Class A common stock is now referred to as the common stock. | |
In October 2010, the Board of Directors approved and authorized the private offering and sale of additional shares of the Company’s Class A common stock at $11.00 per share in the period from October 2010 through January 2011. As of December 31, 2010, the Company sold approximately 1.9 million shares and received net proceeds of $20.5 million. In January 2011, the Company sold an additional 53,772 shares as part of this offering and received net proceeds of approximately $0.6 million. | |
Treasury Stock | |
The increase of 105,126 and 21,876 shares in treasury stock outstanding during 2013 and 2012, respectively, represents forfeitures of non-vested restricted stock awards. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | |||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||
From time to time, the Company uses derivative financial instruments to mitigate its exposure to commodity price risk associated with oil, natural gas and natural gas liquids prices. These instruments consist of put and call options in the form of costless collars and swap contracts. The Company records derivative financial instruments on its consolidated balance sheet as either assets or liabilities measured at fair value. The Company has elected not to apply hedge accounting for its existing derivative financial instruments. As a result, the Company recognizes the change in derivative fair value between reporting periods currently in its consolidated statement of operations as an unrealized gain or loss. The fair value of the Company’s derivative financial instruments is determined using purchase and sale information available for similarly traded securities. Comerica Bank, RBC, The Bank of Nova Scotia and SunTrust Bank (or affiliates thereof) were the counterparties for the Company’s commodity derivatives at December 31, 2013. The Company has considered the credit standings of the counterparties in determining the fair value of its derivative financial instruments. | ||||||||||||||||||
The Company has entered into various costless collar contracts to mitigate its exposure to fluctuations in oil prices, each with an established price floor and ceiling. For each calculation period, the specified price for determining the realized gain or loss pursuant to any of these transactions is the arithmetic average of the settlement prices for the NYMEX West Texas Intermediate oil futures contract for the first nearby month corresponding to the calculation period’s calendar month. When the settlement price is below the price floor established by one or more of these collars, the Company receives from the counterparty an amount equal to the difference between the settlement price and the price floor multiplied by the contract oil volume. When the settlement price is above the price ceiling established by one or more of these collars, the Company pays to the counterparty an amount equal to the difference between the settlement price and the price ceiling multiplied by the contract oil volume. | ||||||||||||||||||
The Company has entered into various swap contracts to mitigate its exposure to fluctuations in oil prices, each with an established fixed price. For each calculation period, the specified price for determining the realized gain or loss pursuant to any of these transactions was the arithmetic average of the settlement prices for the NYMEX West Texas Intermediate oil futures contract for the first nearby month corresponding to the calculation period’s calendar month. When the settlement price was below the fixed price established by one or more of these swaps, the Company received from the counterparty an amount equal to the difference between the settlement price and the fixed price multiplied by the contract oil volume. When the settlement price was above the fixed price established by one or more of these swaps, the Company paid to the counterparty an amount equal to the difference between the settlement price and the fixed price multiplied by the contract oil volume. These oil price swap contracts expired on December 31, 2013. | ||||||||||||||||||
The Company has entered into various costless collar transactions for natural gas, each with an established price floor and ceiling. For each calculation period, the specified price for determining the realized gain or loss to the Company pursuant to any of these transactions is the settlement price for the NYMEX Henry Hub natural gas futures contract for the delivery month corresponding to the calculation period’s calendar month for the settlement date of that contract period. When the settlement price is below the price floor established by one or more of these collars, the Company receives from the counterparty an amount equal to the difference between the settlement price and the price floor multiplied by the contract natural gas volume. When the settlement price is above the price ceiling established by one or more of these collars, the Company pays to the counterparty an amount equal to the difference between the settlement price and the price ceiling multiplied by the contract natural gas volume. | ||||||||||||||||||
The Company has entered into various swap contracts to mitigate its exposure to fluctuations in natural gas liquids (“NGL”) prices, each with an established fixed price. For each calculation period, the settlement price for determining the realized gain or loss to the Company pursuant to any of these transactions is the arithmetic average of any current month for delivery on the nearby month futures contracts of the underlying commodity as stated on the “Mont Belvieu Spot Gas Liquids Prices: NON-TET prop” on the pricing date. When the settlement price is below the fixed price established by one or more of these swaps, the Company receives from the counterparty an amount equal to the difference between the settlement price and the fixed price multiplied by the contract NGL volume. When the settlement price is above the fixed price established by one or more of these swaps, the Company pays to the counterparty an amount equal to the difference between the settlement price and the fixed price multiplied by the contract NGL volume. | ||||||||||||||||||
At December 31, 2013, the Company had various costless collar contracts open and in place to mitigate its exposure to oil and natural gas price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and price floor and ceiling. Each contract is set to expire at varying times during 2014 and 2015. | ||||||||||||||||||
At December 31, 2013, the Company had various swap contracts open and in place to mitigate its exposure to NGL price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and fixed price. Each contract is set to expire at varying times during 2014 and 2015. | ||||||||||||||||||
The following is a summary of the Company’s open costless collar contracts for oil and natural gas and open swap contracts for NGL at December 31, 2013. | ||||||||||||||||||
Notional Quantity (Bbl/month) | Price Floor ($/Bbl) | Price Ceiling ($/Bbl) | Fair Value of Asset (Liability) (thousands) | |||||||||||||||
Commodity | Calculation Period | |||||||||||||||||
Oil | 01/01/2014 - 06/30/2014 | 8,000 | $ | 90 | $ | 114 | $ | 44 | ||||||||||
Oil | 01/01/2014 - 06/30/2014 | 12,000 | 90 | 115.5 | 67 | |||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 15,000 | 85 | 97.5 | (309 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 30,000 | 85 | 98 | (560 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 12,000 | 85 | 100 | (90 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 12,200 | 85 | 100.4 | (70 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 10,000 | 85 | 100.55 | (52 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 15,000 | 87 | 97 | (294 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 20,000 | 88 | 95.6 | (536 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 20,000 | 90 | 97 | (253 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 12,000 | 90 | 97.9 | (80 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 15,000 | 90 | 97.9 | (98 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 15,000 | 90 | 98 | (101 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 15,000 | 90 | 101.15 | 132 | |||||||||||||
Total open oil costless collar contracts | (2,200 | ) | ||||||||||||||||
Notional Quantity (MMBtu/month) | Price Floor ($/MMBtu) | Price Ceiling ($/MMBtu) | Fair Value of Asset (Liability) (thousands) | |||||||||||||||
Commodity | Calculation Period | |||||||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3 | 5.15 | (60 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3.25 | 5.21 | (34 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3.25 | 5.22 | (34 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3.25 | 5.37 | (22 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3.25 | 5.42 | (18 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3.5 | 4.9 | (37 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3.75 | 4.77 | 3 | |||||||||||||
Natural Gas | 01/01/2014 - 12/31/2015 | 100,000 | 3.75 | 4.36 | (237 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2015 | 100,000 | 3.75 | 4.45 | (158 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2015 | 100,000 | 3.75 | 4.6 | (24 | ) | ||||||||||||
Natural Gas | 04/01/2014 - 12/31/2014 | 100,000 | 3.75 | 4.75 | 6 | |||||||||||||
Natural Gas | 01/01/2015 - 03/31/2015 | 200,000 | 4 | 4.84 | (3 | ) | ||||||||||||
Natural Gas | 01/01/2015 - 12/31/2015 | 100,000 | 3.75 | 4.65 | (9 | ) | ||||||||||||
Natural Gas | 01/01/2015 - 12/31/2015 | 200,000 | 3.75 | 5.04 | 182 | |||||||||||||
Total open natural gas costless collar contracts | (445 | ) | ||||||||||||||||
Notional Quantity (Gal/month) | Fixed Price ($/Gal) | Fair Value of Asset (Liability) (thousands) | ||||||||||||||||
Commodity | Calculation Period | |||||||||||||||||
Propane | 01/01/2014 - 12/31/2014 | 116,000 | 0.95 | (247 | ) | |||||||||||||
Propane | 01/01/2014 - 12/31/2014 | 84,000 | 1.143 | 32 | ||||||||||||||
Propane | 01/01/2014 - 12/31/2014 | 68,000 | 1.15 | 32 | ||||||||||||||
Propane | 01/01/2014 - 12/31/2014 | 116,000 | 1.003 | (150 | ) | |||||||||||||
Propane | 01/01/2014 - 12/31/2014 | 60,000 | 1.015 | (69 | ) | |||||||||||||
Propane | 01/01/2015 - 12/31/2015 | 150,000 | 1 | (58 | ) | |||||||||||||
Propane | 01/01/2015 - 12/31/2015 | 68,000 | 1.073 | 33 | ||||||||||||||
Normal Butane | 01/01/2014 - 12/31/2014 | 17,500 | 1.54 | 47 | ||||||||||||||
Normal Butane | 01/01/2014 - 12/31/2014 | 45,500 | 1.55 | 122 | ||||||||||||||
Isobutane | 01/01/2014 - 12/31/2014 | 22,000 | 1.64 | 78 | ||||||||||||||
Isobutane | 01/01/2014 - 12/31/2014 | 37,000 | 1.64 | 140 | ||||||||||||||
Natural Gasoline | 01/01/2014 - 12/31/2014 | 30,000 | 1.97 | (35 | ) | |||||||||||||
Natural Gasoline | 01/01/2014 - 12/31/2014 | 41,000 | 2 | (33 | ) | |||||||||||||
Total open NGL swap contracts | (108 | ) | ||||||||||||||||
Total open derivative financial instruments | $ | (2,753 | ) | |||||||||||||||
These derivative financial instruments are subject to master netting arrangements within specific commodity types, i.e., oil, natural gas and NGL, by counterparty. Derivative financial instruments with Counterparty A are not subject to master netting across commodity types, while derivative financial instruments with Counterparties B, C and D allow for cross-commodity master netting provided the settlement dates for the commodities are the same. The Company does not present different types of commodities with the same counterparty on a net basis in its consolidated balance sheet. | ||||||||||||||||||
The following table presents the gross asset balances of the Company’s derivative financial instruments, the amounts subject to master netting arrangements, the amounts that the Company has presented on a net basis, the amounts subject to master netting across different commodity types that were presented on a gross basis and the location of these balances in its consolidated balance sheet as of December 31, 2013 (in thousands). | ||||||||||||||||||
Derivative Instruments | Gross | Gross amounts | Net amounts of | Amounts subject to master netting arrangements presented on a gross basis | ||||||||||||||
amounts of | netted in the | assets | ||||||||||||||||
recognized | consolidated | presented in the | ||||||||||||||||
assets | balance sheet | consolidated | ||||||||||||||||
balance sheet | ||||||||||||||||||
Counterparty A | ||||||||||||||||||
Current assets | $ | 1,746 | $ | (1,746 | ) | $ | — | $ | — | |||||||||
Other assets | — | — | — | — | ||||||||||||||
Counterparty B | ||||||||||||||||||
Current assets | 1,371 | (1,371 | ) | — | — | |||||||||||||
Other assets | 841 | (668 | ) | 173 | — | |||||||||||||
Counterparty C | ||||||||||||||||||
Current assets | 2,886 | (2,873 | ) | 13 | — | |||||||||||||
Other assets | 1,046 | (1,046 | ) | — | — | |||||||||||||
Counterparty D | ||||||||||||||||||
Current assets | 6 | — | 6 | — | ||||||||||||||
Other assets | — | — | — | — | ||||||||||||||
Total | $ | 7,896 | $ | (7,704 | ) | $ | 192 | $ | — | |||||||||
The following table presents the gross liability balances of the Company’s derivative financial instruments, the amounts subject to master netting arrangements, the amounts that the Company has presented on a net basis, the amounts subject to master netting across different commodity types that were presented on a gross basis and the location of these balances in its consolidated balance sheet as of December 31, 2013 (in thousands). | ||||||||||||||||||
Derivative Instruments | Gross | Gross amounts | Net amounts of | Amounts subject to master netting arrangements presented on a gross basis | ||||||||||||||
amounts of | netted in the | liabilities | ||||||||||||||||
recognized | consolidated | presented in the | ||||||||||||||||
liabilities | balance sheet | consolidated | ||||||||||||||||
balance sheet | ||||||||||||||||||
Counterparty A | ||||||||||||||||||
Current liabilities | $ | 2,550 | $ | (1,746 | ) | $ | 804 | $ | — | |||||||||
Long-term liabilities | — | — | — | — | ||||||||||||||
Counterparty B | ||||||||||||||||||
Current liabilities | 2,136 | (1,371 | ) | 765 | — | |||||||||||||
Long-term liabilities | 668 | (668 | ) | — | — | |||||||||||||
Counterparty C | ||||||||||||||||||
Current liabilities | 3,996 | (2,873 | ) | 1,123 | — | |||||||||||||
Long-term liabilities | 1,299 | (1,046 | ) | 253 | — | |||||||||||||
Counterparty D | ||||||||||||||||||
Current liabilities | — | — | — | — | ||||||||||||||
Long-term liabilities | — | — | — | — | ||||||||||||||
Total | $ | 10,649 | $ | (7,704 | ) | $ | 2,945 | $ | — | |||||||||
The following table presents the gross asset balances of the Company’s derivative financial instruments, the amounts subject to master netting arrangements, the amounts that the Company has presented on a net basis, the amounts subject to master netting across different commodity types that were presented on a gross basis and the location of these balances in its consolidated balance sheet as of December 31, 2012 (in thousands). | ||||||||||||||||||
Derivative Instruments | Gross | Gross amounts | Net amounts of | Amounts subject to master netting arrangements presented on a gross basis | ||||||||||||||
amounts of | netted in the | assets | ||||||||||||||||
recognized | consolidated | presented in the | ||||||||||||||||
assets | balance sheet | consolidated | ||||||||||||||||
balance sheet | ||||||||||||||||||
Counterparty A | ||||||||||||||||||
Current assets | $ | 6,445 | $ | (2,373 | ) | $ | 4,072 | $ | — | |||||||||
Other assets | 1,096 | (370 | ) | 726 | — | |||||||||||||
Counterparty B | ||||||||||||||||||
Current assets | 530 | (224 | ) | 306 | 82 | |||||||||||||
Other assets | 384 | (339 | ) | 45 | — | |||||||||||||
Total | $ | 8,455 | $ | (3,306 | ) | $ | 5,149 | $ | 82 | |||||||||
The following table presents the gross liability balances of the Company’s derivative financial instruments, the amounts subject to master netting arrangements, the amounts that the Company has presented on a net basis, the amounts subject to master netting across different commodity types that were presented on a gross basis and the location of these balances in its consolidated balance sheet as of December 31, 2012 (in thousands). | ||||||||||||||||||
Derivative Instruments | Gross | Gross amounts | Net amounts of | Amounts subject to master netting arrangements presented on a gross basis | ||||||||||||||
amounts of | netted in the | liabilities | ||||||||||||||||
recognized | consolidated | presented in the | ||||||||||||||||
liabilities | balance sheet | consolidated | ||||||||||||||||
balance sheet | ||||||||||||||||||
Counterparty A | ||||||||||||||||||
Current liabilities | $ | 2,373 | $ | (2,373 | ) | $ | — | $ | — | |||||||||
Long-term liabilities | 370 | (370 | ) | — | — | |||||||||||||
Counterparty B | ||||||||||||||||||
Current liabilities | 894 | (224 | ) | 670 | 82 | |||||||||||||
Long-term liabilities | 339 | (339 | ) | — | — | |||||||||||||
Total | $ | 3,976 | $ | (3,306 | ) | $ | 670 | $ | 82 | |||||||||
The following table summarizes the location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments. | ||||||||||||||||||
Location in | Year Ended December 31, | |||||||||||||||||
Type of Instrument | Statement of Operations | 2013 | 2012 | 2011 | ||||||||||||||
Derivative Instrument | ||||||||||||||||||
Oil | Revenues: Realized (loss) gain on derivatives | $ | (2,408 | ) | $ | 2,047 | $ | — | ||||||||||
Natural Gas | Revenues: Realized gain on derivatives | 831 | 11,892 | 7,106 | ||||||||||||||
NGL | Revenues: Realized gain on derivatives | 668 | 21 | — | ||||||||||||||
Realized (loss) gain on derivatives | (909 | ) | 13,960 | 7,106 | ||||||||||||||
Oil | Revenues: Unrealized (loss) gain on derivatives | (5,319 | ) | 3,673 | (554 | ) | ||||||||||||
Natural Gas | Revenues: Unrealized (loss) gain on derivatives | (1,580 | ) | (8,700 | ) | 5,692 | ||||||||||||
NGL | Revenues: Unrealized (loss) gain on derivatives | (333 | ) | 225 | — | |||||||||||||
Unrealized (loss) gain on derivatives | (7,232 | ) | (4,802 | ) | 5,138 | |||||||||||||
Total | $ | (8,141 | ) | $ | 9,158 | $ | 12,244 | |||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
The Company measures and reports certain financial and non-financial assets and liabilities on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Fair value measurements are classified and disclosed in one of the following categories. | |||||||||||||||||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Active markets are considered to be those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||||||||||||
Level 2 | Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that are valued using observable market data. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, and can be derived from observable data or supported by observable levels at which transactions are executed in the marketplace. | ||||||||||||||||
Level 3 | Unobservable inputs that are not corroborated by market data. This category is comprised of financial and non-financial assets and liabilities whose fair value is estimated based on internally developed models or methodologies using significant inputs that are generally less readily observable from objective sources. | ||||||||||||||||
Financial and non-financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||||||||||
At December 31, 2013 and 2012, the carrying values reported on the consolidated balance sheets for accounts receivable, prepaid expenses, accounts payable, accrued liabilities, royalties payable, advances from joint interest owners, income taxes payable and other current liabilities approximate their fair values due to their short-term maturities and are classified at Level 1. | |||||||||||||||||
At December 31, 2013 and 2012, the carrying value of borrowings under the Credit Agreement approximates fair value as it is subject to short-term floating interest rates that reflect market rates available to the Company at the time and is classified at Level 2. | |||||||||||||||||
The following tables summarize the valuation of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis in accordance with the classifications provided above as of December 31, 2013 and 2012 (in thousands). | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
Description | December 31, 2013 using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets (Liabilities) | |||||||||||||||||
Oil, natural gas and NGL derivatives | $ | — | $ | 192 | $ | — | $ | 192 | |||||||||
Oil, natural gas and NGL derivatives | — | (2,945 | ) | — | (2,945 | ) | |||||||||||
Total | $ | — | $ | (2,753 | ) | $ | — | $ | (2,753 | ) | |||||||
Fair Value Measurements at | |||||||||||||||||
Description | December 31, 2012 using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets (Liabilities) | |||||||||||||||||
Certificates of deposit | $ | — | $ | 230 | $ | — | $ | 230 | |||||||||
Oil, natural gas and NGL derivatives | — | 5,149 | — | 5,149 | |||||||||||||
Oil, natural gas and NGL derivatives | — | (670 | ) | — | (670 | ) | |||||||||||
Total | $ | — | $ | 4,709 | $ | — | $ | 4,709 | |||||||||
The Company’s accounting policies for certificates of deposit and derivative financial instruments are discussed in Note 2; additional disclosures related to derivative financial instruments are provided in Note 11. For purposes of fair value measurement, the Company determined that certificates of deposit and derivative financial instruments (e.g., oil, natural gas and NGL derivatives) should be classified at Level 2. | |||||||||||||||||
The Company accounts for additions to asset retirement obligations and lease and well equipment inventory when adjusted for impairment at fair value on a non-recurring basis. The following tables summarize the valuation of the Company’s assets and liabilities that were accounted for at fair value on a non-recurring basis as of December 31, 2013 and 2012 (in thousands). | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
Description | December 31, 2013 using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets (Liabilities) | |||||||||||||||||
Asset retirement obligations | $ | — | $ | — | $ | (1,470 | ) | $ | (1,470 | ) | |||||||
Total | $ | — | $ | — | $ | (1,470 | ) | $ | (1,470 | ) | |||||||
Fair Value Measurements at | |||||||||||||||||
Description | December 31, 2012 using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets (Liabilities) | |||||||||||||||||
Asset retirement obligations | $ | — | $ | — | $ | (1,243 | ) | $ | (1,243 | ) | |||||||
Lease and well equipment inventory | — | — | 34 | 34 | |||||||||||||
Total | $ | — | $ | — | $ | (1,209 | ) | $ | (1,209 | ) | |||||||
The Company’s accounting policies for asset retirement obligations are discussed in Note 2; reconciliations of the Company’s asset retirement obligations are provided in Note 4 for the periods presented. For purposes of fair value measurement, the Company determined that the additions to asset retirement obligations should be classified at Level 3. The Company recorded additions to asset retirement obligations of approximately $1.5 million and $1.2 million in 2013 and 2012, respectively. | |||||||||||||||||
The Company’s accounting policies for lease and well equipment inventory are discussed in Note 2. For purposes of fair value measurement, the Company determined that lease and well equipment inventory should be classified at Level 3. The Company recorded an impairment of $192,000 to its equipment, consisting primarily of pipe, held in inventory in 2013. The Company recorded an impairment to some of its equipment held in inventory, consisting primarily of drilling rig parts and pipe, of $425,000 and $60,464, respectively, in 2012. The Company periodically obtains estimates of the market value of its equipment held in inventory from an independent third-party contractor or seller of similar equipment and uses these estimates as a basis for its measurement of the fair value of this equipment. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
Office Lease | |||||
The Company’s corporate headquarters are located at One Lincoln Centre, 5400 LBJ Freeway, Suite 1500, Dallas, Texas 75240. In April 2013, the Company entered into the fifth amendment to its office lease agreement. This amendment increased the square footage of its corporate headquarters to 40,071 square feet effective July 1, 2013. The lease expires on June 30, 2022. | |||||
The effective base rent over the term of the new lease extension is $20.28 per square foot per year. The base rate escalates several times during the course of the lease, specifically in July 2015, July 2017, July 2019 and July 2020; however, the Company recognizes rent expense under the lease ratably over the term of the lease. | |||||
The following is a schedule of future minimum lease payments required under the office lease agreement as of December 31, 2013 (in thousands). | |||||
Year Ending December 31, | Amount | ||||
2014 | $ | 812 | |||
2015 | 831 | ||||
2016 | 852 | ||||
2017 | 872 | ||||
2018 | 893 | ||||
Thereafter | 3,329 | ||||
Total | $ | 7,589 | |||
Rent expense, including fees for operating expenses and consumption of electricity, was $0.8 million, $0.6 million and $0.5 million for 2013, 2012 and 2011, respectively. | |||||
Natural Gas and NGL Processing and Transportation Commitments | |||||
Effective September 1, 2012, the Company entered into a firm five-year natural gas processing and transportation agreement whereby the Company committed to transport the anticipated natural gas production from a significant portion of its Eagle Ford acreage in South Texas through the counterparty’s system for processing at the counterparty’s facilities. The agreement also includes firm transportation of the natural gas liquids extracted at the counterparty’s processing plant downstream for fractionation. After processing, the residue natural gas is purchased by the counterparty at the tailgate of its processing plant and further transported under its natural gas transportation agreements. The arrangement contains fixed processing and liquids transportation and fractionation fees, and the revenue the Company receives varies with the quality of natural gas transported to the processing facilities and the contract period. | |||||
Under this agreement, if the Company does not meet 80% of the maximum thermal quantity transportation and processing commitments in a contract year, it will be required to pay a deficiency fee per MMBtu of natural gas deficiency. Any quantity in excess of the maximum MMBtu delivered in a contract year can be carried over to the next contract year for purposes of calculating the natural gas deficiency. During certain periods, the Company had an immaterial natural gas deficiency, and the counterparty to this agreement has agreed to waive the deficiency fee. The Company paid approximately $5.3 million and $0.3 million in processing and transportation fees under this agreement during the years ended December 31, 2013 and 2012, respectively. | |||||
The aggregate undiscounted minimum commitments under this agreement at December 31, 2013 are as follows (in thousands). | |||||
Year Ending December 31, | Amount | ||||
2014 | $ | 4,731 | |||
2015 | 2,992 | ||||
2016 | 1,800 | ||||
2017 | 1,195 | ||||
Total | $ | 10,718 | |||
Other Commitments | |||||
From time to time, the Company enters into contracts with third parties for drilling rigs. These contracts establish daily rates for the drilling rigs and the term of the Company’s commitment for the drilling services to be provided, which are typically for one year or less. Should the Company elect to terminate a contract and if the drilling contractor were unable to secure work for the contracted drilling rigs or if the drilling contractor were unable to secure work for the contracted drilling rigs at the same daily rates being charged to the Company prior to the end of their respective contract terms, the Company would incur termination obligations. The Company’s maximum outstanding aggregate termination obligations under its drilling rig contracts were approximately $9.9 million at December 31, 2013. | |||||
At December 31, 2013, the Company had outstanding commitments to participate in the drilling and completion of various non-operated wells. If all of these wells are drilled and completed as proposed, the Company’s minimum outstanding aggregate commitments for its participation in these non-operated wells were approximately $5.7 million at December 31, 2013. The Company expects these costs to be incurred within the next few months. | |||||
Legal Proceedings | |||||
Cynthia Fry Peironnet, et al. v. Matador Resources Company. The Company was involved in a dispute over a mineral rights lease (the “Lease”) involving certain acreage in Louisiana. The dispute regarded an extension of the term of the Lease in Caddo Parish, Louisiana where the Company has drilled or participated in the drilling of both Cotton Valley and Haynesville shale wells. At issue were the deep rights below the Cotton Valley formation on approximately 1,805 gross acres where the Company has the right to participate for up to a 25% working interest, and also retains a small overriding royalty interest, in Haynesville shale wells drilled in units that include portions of the acreage. The Company’s total net revenue and overriding royalty interests in several non-operated Haynesville shale wells previously drilled on this acreage range from approximately 2% to 23%, and only portions of these interests are attributable to this acreage. The sum of the Company’s overriding royalty and net revenue interests attributable to this acreage from Haynesville wells previously drilled on this acreage comprises less than one net well. | |||||
The plaintiffs brought this claim against the Company on May 15, 2008 in the First Judicial District Court, Caddo Parish, Louisiana (the “Trial Court”). The plaintiffs sought (i) reformation or rescission of the lease extension, (ii) an accounting for additional royalty, (iii) monetary damages and (iv) attorney’s fees. During the pendency of the case in the Trial Court, the Company settled with one lessor who owned a 1/6th undivided interest in the minerals. The Trial Court rendered multiple rulings in the favor of the Company, including a unanimous jury verdict in favor of the Company in the fall of 2010. Final judgment of the Trial Court was rendered in favor of the Company on June 6, 2011. On August 1, 2012, the Louisiana Second Circuit of Appeal (the “Court of Appeal”) affirmed in part and reversed in part the judgment of the Trial Court and remanded the case to the Trial Court for determination of damages. The Court of Appeal affirmed the Trial Court with respect to the 1/6th royalty owner that settled and also affirmed that the Company’s lease extension was unambiguous. Nonetheless, the Court of Appeal reformed the lease extension to cover only approximately 169 gross acres, holding that the deep rights covering the remaining 1,636 gross acres had expired. The Court of Appeal denied the Company’s motion for rehearing, and the Company and certain other defendants filed an appeal with the Louisiana Supreme Court. The Louisiana Supreme Court granted the requests to hear an appeal of the Court of Appeal’s decision, and in June 2013, the Louisiana Supreme Court reversed the decision of the Court of Appeal and reinstated the Trial Court judgment in its entirety. The plaintiffs filed an application for rehearing with the Louisiana Supreme Court, which was denied on August 30, 2013. | |||||
MRC Energy Company f/k/a Matador Resources Company, v. Orca ICI Development, J.V. The Company and Orca, a non-operator working interest owner, had various disputes regarding certain of the Company’s Eagle Ford shale wells and properties. Among other things, issues arose with respect to the rights and obligations of the Company and Orca under various agreements between the parties and Orca sought the Company’s consent to Orca’s proposed assignment of its 50% working interest in the Cowey #3H and #4H wells to a non-industry person, despite the presence of a uniform maintenance of interest provision. On April 2, 2013, Orca brought suit against the Company in the 57th Judicial District Court of Bexar County, Texas and sought injunctive relief. The court denied Orca’s demand for injunctive relief and on April 5, 2013, the Company moved to enforce arbitration provisions in the agreements between the parties. On April 22, 2013, the Company initiated an arbitration against Orca, seeking, among other things, a declaration that the Company could withhold its consent to Orca’s putative assignment of these interests. On May 6, 2013, Orca and the Company agreed to resolve all outstanding issues between the parties regarding the respective rights and obligations of the parties under the agreements between them. In addition, Matador agreed to allow Orca time to try to resolve the outstanding issue with respect to Orca’s purported assignment of its interest in the Cowey #3H and #4H wells and to stay the pending arbitration. Ultimately, pursuant to an amendment to the Purchase and Sale Agreement between the parties, the Company agreed to bear 100% of the costs to drill, complete and equip the Cowey #3H and #4H wells. Until such time as the Company has recovered 100% of the costs to drill, complete and equip these wells, all revenues generated by production from these two wells will be attributable to the Company. Following the Company’s recovery of these amounts, Orca would participate in the wells for a 25% working interest. The Company has returned $8.7 million submitted by Orca’s putative assignee. The agreement also included a mutual release of claims between the Company and Orca and provided for dismissal of the Bexar County litigation. Orca filed a notice of non-suit of the Bexar County litigation on August 7, 2013. | |||||
The Company is also a defendant in several lawsuits encountered in the ordinary course of its business. In the opinion of management, it is remote that these lawsuits will have a material adverse impact on the Company’s financial position, results of operations or cash flows. | |||||
General Federal and State Regulations | |||||
Oil and natural gas exploration, development, production and related operations are subject to extensive federal, state and local laws, rules and regulations. Failure to comply with these laws, rules and regulations can result in substantial monetary penalties or delay or suspension of operations. The regulatory burden on the oil and natural gas industry increases the cost of doing business and affects profitability. The Company believes that it is in material compliance with currently applicable state and federal regulations. Because these rules and regulations are frequently amended or reinterpreted, however, the Company is unable to predict the future cost or impact of complying with these regulations. | |||||
Environmental Regulations | |||||
The exploration, development and production of oil and natural gas, including the operation of salt water injection and disposal wells, are subject to various federal, state and local environmental laws and regulations. These laws and regulations can increase the costs of planning, designing, installing and operating oil and natural gas wells. The Company’s activities are subject to a variety of environmental laws and regulations, including but not limited to the Oil Pollution Act of 1990, or OPA, the Clean Water Act, or CWA, the Comprehensive Environmental Response, Compensation and Liability Act, or CERCLA, the Resource Conservation and Recovery Act, or RCRA, the Clean Air Act, or CAA, the Safe Drinking Water Act, or SDWA, and the Occupational Safety and Health Act, or OSHA, as well as comparable state statutes and regulations. The Company is also subject to regulations governing the handling, transportation, storage and disposal of waste generated by its activities and of naturally occurring radioactive materials, or NORM, that may result from its oil and natural gas operations. Administrative, civil and criminal fines and penalties may be imposed for noncompliance with these environmental laws and regulations. Additionally, these laws and regulations require the acquisition of permits or other governmental authorizations before undertaking some activities, limit or prohibit other activities because of protected wetlands, areas or species, and require investigation and cleanup of pollution. The Company has no outstanding material environmental remediation liabilities and believes that it is in material compliance with currently applicable environmental laws and regulations and that these laws and regulations will not have a material adverse impact on the financial position, results of operations or cash flows of the Company. | |||||
Changes in environmental laws and regulations occur frequently, however, and any changes that result in more stringent and costly waste handling, storage, transport, disposal or cleanup requirements could, and in all likelihood would, materially adversely affect the Company’s financial position, results of operations and cash flows, as well as those of the oil and natural gas industry in general. Because these rules and regulations are frequently amended or reinterpreted, the Company is unable to predict the future cost or impact of complying with these regulations. For instance, recent scientific studies have suggested that emissions of certain gases, commonly referred to as “greenhouse gases,” and including carbon dioxide and methane, may be contributing to the warming of the Earth’s atmosphere. As a result, there have been attempts to pass comprehensive greenhouse gas legislation. To date, such legislation has not been enacted. Any future federal or state laws or implementing regulations that may be adopted to address greenhouse gas emissions could, and in all likelihood would, require the Company to incur increased operating costs adversely affecting its financial position, results of operations and cash flows. | |||||
The Company’s activities involve the use of hydraulic fracturing. Recently, there has been increasing regulatory scrutiny of hydraulic fracturing, which is generally exempted from regulation as underground injection (unless diesel is a component of the fracturing fluid) at the federal level. At the federal level and in some states, there have been efforts to place additional regulatory burdens on hydraulic fracturing activities. At the state level, Texas and Wyoming, for example, have enacted requirements for the disclosure of the composition of the fluids used in hydraulic fracturing. In addition, at least a few local governments or regional authorities have imposed temporary moratoria on drilling permits within city limits so that local ordinances may be reviewed to assess their adequacy to address hydraulic fracturing activities. Additional burdens on hydraulic fracturing, such as reporting requirements or permitting requirements for the hydraulic fracturing activity, will result in additional expense and delay the Company’s operations adversely affecting its financial position, results of operations and cash flows. | |||||
Oil and natural gas exploration and production, operations and other activities have been conducted at some of the Company’s properties by previous owners and operators. Materials from these operations remain on some of the properties, and, in some instances, may require remediation. In addition, the Company occasionally must agree to indemnify sellers of producing properties the Company acquires against some or all of the liability for environmental claims associated with these properties. While the Company does not believe that the costs it incurs for compliance with environmental regulations and remediating previously or currently owned or operated properties will be material, the Company cannot provide assurances that these costs will not result in material expenditures that adversely affect its financial position, results of operations and cash flows. | |||||
The Company maintains insurance against some, but not all, potential risks and losses associated with the oil and natural gas industry and operations. The Company does not carry business interruption insurance. For some risks, the Company may not obtain insurance if it believes the cost of available insurance is excessive relative to the risks presented. In addition, pollution and environmental risks generally are not fully insurable. If a significant accident or other event occurs and is not fully covered by insurance, it could, and in all likelihood would, materially adversely affect the Company’s financial position, results of operations and cash flows. |
Supplemental_Disclosures
Supplemental Disclosures | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Disclosures [Abstract] | ' | ||||||||||||
SUPPLEMENTAL DISCLOSURES | ' | ||||||||||||
Accrued Liabilities | |||||||||||||
The following table summarizes the Company’s current accrued liabilities at December 31, 2013 and 2012 (in thousands). | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Accrued evaluated and unproved and unevaluated property costs | $ | 52,605 | $ | 45,592 | |||||||||
Accrued support equipment and facilities costs | — | 1,382 | |||||||||||
Accrued stock-based compensation | 56 | 65 | |||||||||||
Accrued lease operating expenses | 6,251 | 5,218 | |||||||||||
Accrued interest on borrowings under Credit Agreement | 141 | 255 | |||||||||||
Accrued asset retirement obligations | 175 | 660 | |||||||||||
Accrued partners’ share of joint interest charges | 1,173 | 3,597 | |||||||||||
Other | 3,586 | 2,410 | |||||||||||
Total accrued liabilities | $ | 63,987 | $ | 59,179 | |||||||||
Supplemental Cash Flow Information | |||||||||||||
The following table provides supplemental disclosures of cash flow information for the years ended December 31, 2013, 2012 and 2011 (in thousands). | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash paid for interest expense, net of amounts capitalized | $ | 5,801 | $ | 780 | $ | 634 | |||||||
Asset retirement obligations related to mineral properties | 1,363 | 1,195 | 488 | ||||||||||
Asset retirement obligations related to support equipment and facilities | 3 | 49 | 12 | ||||||||||
Increase in liabilities for oil and natural gas properties capital expenditures | 7,548 | 24,847 | 1,864 | ||||||||||
Increase in liabilities for support equipment and facilities | 660 | 1,112 | 175 | ||||||||||
Issuance of restricted stock units for Board and advisor services | 274 | 73 | — | ||||||||||
Issuance of common stock for Board and advisor services | 57 | 71 | 230 | ||||||||||
(Decrease) increase in liabilities for accrued cost to issue equity | — | (332 | ) | (27 | ) | ||||||||
Stock-based compensation expense recognized as liability | 1,012 | (1,092 | ) | 2,102 | |||||||||
Transfer of inventory to oil and natural gas properties | 343 | 69 | 96 | ||||||||||
Subsidiary_Guarantors_Notes
Subsidiary Guarantors (Notes) | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
SUBSIDIARY GUARANTORS | ' |
SUBSIDIARY GUARANTORS | |
Matador filed a registration statement on Form S-3 with the SEC, which became effective May 9, 2013, and registered, among other securities, debt securities. The subsidiaries of Matador (the “Subsidiaries”) are co-registrants with Matador, and the registration statement registers guarantees of debt securities by the Subsidiaries. As of December 31, 2013, the Subsidiaries are 100% owned by Matador, and any guarantees by the Subsidiaries will be full and unconditional (except for customary release provisions). Matador has no assets or operations independent of the Subsidiaries, and there are no significant restrictions upon the ability of the Subsidiaries to distribute funds to Matador. In the event that more than one of the Subsidiaries provide guarantees of any debt securities issued by Matador, such guarantees will constitute joint and several obligations. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
On March 12, 2014, the borrowing base under the Company’s Credit Agreement was increased to $385.0 million based on the lenders’ review of its proved oil and natural gas reserves at December 31, 2013. At that time, the Credit Agreement was also amended to include Wells Fargo Bank, N.A., which replaced Capital One, N.A., in the Company’s lending group, which also includes RBC as administrative agent, Comerica Bank, Citibank, N.A., The Bank of Nova Scotia, SunTrust Bank, BMO Harris Financing, Inc. (Bank of Montreal) and IberiaBank. The amendment also provided that the borrowing base will automatically be reduced to the conforming borrowing base on the earlier of (i) June 30, 2015 or (ii) concurrent with the issuance by the Company of senior unsecured notes in an amount greater than or equal to $10.0 million. At March 13, 2014, the Company had $250.0 million in borrowings and $0.3 million in letters of credit outstanding under its Credit Agreement. The Company incurred $0.8 million of additional deferred loan costs in connection with the borrowing base redetermination and amendment of the Credit Agreement. These costs will be included with the remaining unamortized portion of the deferred loan costs of $2.1 million at December 31, 2013 to be amortized over the term of the agreement. | |
In February 2014, the Company granted awards of options to purchase 49,721 shares of the Company’s common stock at an exercise price of $19.71 per share to certain of its employees. The fair value of these awards was approximately $0.4 million. The Company also granted awards of 19,787 shares of restricted stock to certain of its employees in February 2014. The fair value of these restricted stock awards was approximately $0.4 million. All of these awards vest over a term of four years. In March 2014, the Company granted awards of options to purchase 224,962 of the Company’s common stock at an exercise price of $23.40 per share to certain of its employees. The fair value of these awards was approximately $2.2 million. The Company also granted awards of 67,690 shares of restricted stock to certain of its employees. The fair value of these awards was approximately $1.5 million. All of these awards vest over a term of four years. | |
Subsequent to December 31, 2013, the Company entered into new contracts with respect to its contracted drilling rigs. The Company’s maximum outstanding termination obligations under its drilling rig contracts were approximately $13.7 million at March 13, 2014. | |
Subsequent to December 31, 2013, the Company agreed to participate in the drilling and completion of various non-operated wells. If all of these wells are drilled and completed, the Company will have minimum outstanding aggregate commitments for its participation in these wells of approximately $20.1 million at March 13, 2014, which it expects to incur within the next six months. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The consolidated financial statements include the accounts of Matador Resources Company and its wholly-owned subsidiary, MRC Energy Company, as well as the accounts of MRC Energy Company’s four wholly-owned subsidiaries, Matador Production Company, Longwood Gathering and Disposal Systems GP, Inc., MRC Permian Company and MRC Rockies Company, and the accounts of Longwood Gathering and Disposal Systems, LP. These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company’s operations are conducted in the one segment generally referred to as the oil and natural gas exploration and production industry. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Reclassifications | ' |
Reclassifications | |
Certain reclassifications have been made to the prior years’ financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations, cash flows or retained earnings. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While the Company believes its estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates. | |
The Company’s consolidated financial statements are based on a number of significant estimates, including oil and natural gas revenues, accrued assets and liabilities, stock-based compensation, valuation of derivative instruments, deferred tax assets and liabilities and oil and natural gas reserves. The estimates of oil and natural gas reserves quantities and future net cash flows are the basis for the calculations of depletion and impairment of oil and natural gas properties, as well as estimates of asset retirement obligations and certain tax accruals. The Company’s oil and natural gas reserves estimates, which are inherently imprecise and based upon many factors that are beyond the Company’s control, including oil and natural gas prices, are prepared by the Company’s engineering staff in accordance with guidelines established by the Securities and Exchange Commission (“SEC”) and then audited for their reasonableness and conformance with SEC guidelines by Netherland, Sewell & Associates, Inc., independent reservoir engineers. | |
Certificates of Deposit | ' |
Certificates of Deposit | |
Certificates of deposit (“CDs”) are highly liquid, short-term investments with an original maturity of more than 30 days but not more than one year. Each CD was recorded at market and was fully insured by the Federal Deposit Insurance Corporation. | |
Accounts Receivable | ' |
Accounts Receivable | |
The Company sells its operated oil, natural gas and natural gas liquids production to various purchasers (see “ — Revenue Recognition” below). Due to the nature of the markets for oil, natural gas and natural gas liquids, the Company does not believe that the loss of any one purchaser would significantly impact operations. In addition, the Company may participate with industry partners in the drilling, completion and operation of oil and natural gas wells. Substantially all of the Company’s accounts receivable are due from either purchasers of oil, natural gas and natural gas liquids or participants in oil and natural gas wells for which the Company serves as the operator. Accounts receivable are due within 30 to 60 days of the production date and 30 days of the billing date, respectively, and are stated at amounts due from purchasers and industry partners. Amounts are considered past due if they have been outstanding for 60 days or more. No interest is typically charged on past due amounts. | |
The Company reviews its need for an allowance for doubtful accounts on a periodic basis, and determines the allowance, if any, by considering the length of time past due, previous loss history, future net revenues of the debtor’s ownership interest in oil and natural gas properties operated by the Company and the debtor’s ability to pay its obligations, among other things. The Company has no allowance for doubtful accounts related to its accounts receivable for any reporting period presented. | |
Lease and Well Equipment Inventory | ' |
Lease and Well Equipment Inventory | |
Lease and well equipment inventory is stated at the lower of cost or market and consists entirely of equipment scheduled for use in future well operations or equipment held for sale. | |
Property and Equipment | ' |
Property and Equipment | |
The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method of accounting, all costs associated with the acquisition, exploration and development of oil and natural gas properties and reserves, including unproved and unevaluated property costs, are capitalized as incurred and accumulated in a single cost center representing the Company’s activities, which are undertaken exclusively in the United States. Such costs include lease acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties, costs of drilling both productive and non-productive wells, capitalized interest on qualifying projects and general and administrative expenses directly related to acquisition, exploration and development activities, but do not include any costs related to production, selling or general corporate administrative activities. The Company capitalized $3.7 million, $2.6 million and $2.0 million of its general and administrative costs in 2013, 2012 and 2011, respectively. The Company capitalized $1.9 million, $1.6 million and $1.3 million of its interest expense for the years ended December 31, 2013, 2012 and 2011, respectively. | |
The net capitalized costs of oil and natural gas properties are limited to the lower of unamortized costs less related deferred income taxes or the cost center “ceiling”. The cost center ceiling is defined as the sum of: | |
(a) the present value, discounted at 10%, of future net revenues of proved oil and natural gas reserves, reduced by the estimated costs of developing these reserves, plus | |
(b) unproved and unevaluated property costs not being amortized, plus | |
(c) the lower of cost or estimated fair value of unproved and unevaluated properties included in the costs being amortized, if any, less | |
(d) income tax effects related to the properties involved. | |
Any excess of the Company’s net capitalized costs above the cost center ceiling as described above is charged to operations as a full-cost ceiling impairment. Since January 1, 2011, the need for a full-cost ceiling impairment is required to be assessed on a quarterly basis. The fair value of the Company’s derivative instruments is not included in the ceiling test computation as the Company does not designate these instruments as hedge instruments for accounting purposes. | |
The estimated present value of after-tax future net cash flows from proved oil and natural gas reserves is highly dependent upon the quantities of proved reserves which requires substantial judgment. The associated commodity prices and the applicable discount rate used in these estimates are in accordance with guidelines established by the SEC. Under these guidelines, oil and natural gas reserves are estimated using then-current operating and economic conditions, with no provision for price and cost escalations in future periods except by contractual arrangements. Future net revenues are calculated using prices that represent the arithmetic average of the first-day-of-the-month price for the 12-month period prior to the end of each quarterly period and dictate that a 10 % discount factor be used. For the period from January through December 2013, these average oil and natural gas prices were $93.42 per barrel and $3.670 per MMBtu, respectively. For the period from January through December 2012, these average oil and natural gas prices were $91.21 per barrel and $2.757 per MMBtu, respectively. For the period from January through December 2011, these average oil and natural gas prices were $92.71 per barrel and $4.118 per MMBtu, respectively. In estimating the present value of after-tax future net cash flows from proved oil and natural gas reserves, the average oil prices were further adjusted by property for quality, transportation fees and regional price differentials, and the average natural gas prices were further adjusted by property for energy content, transportation and marketing fees and regional price differentials. | |
At March 31, 2013, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $13.7 million. The Company recorded an impairment charge of $21.2 million to its net capitalized costs and a deferred income tax credit of $7.5 million related to the full-cost ceiling limitation. These charges are reflected in the Company’s consolidated statement of operations for the year ended December 31, 2013. | |
At June 30, 2012, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $21.3 million. The Company recorded an impairment charge of $33.2 million to its net capitalized costs and a deferred income tax credit of $11.9 million related to the full-cost ceiling limitation. At September 30, 2012, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $2.3 million. The Company recorded an impairment charge of $3.6 million to its net capitalized costs and a deferred income tax credit of $1.3 million related to the full-cost ceiling limitation. At December 31, 2012, the Company’s net capitalized costs exceeded the full-cost center ceiling by $17.3 million. The Company recorded an impairment charge of $26.7 million to its net capitalized costs and a deferred income tax credit of $9.4 million related to the full-cost ceiling limitation. These charges for the second, third and fourth quarters of 2012 are reflected in the Company’s consolidated statement of operations for the year ended December 31, 2012. | |
At March 31, 2011, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $23.0 million. The Company recorded an impairment charge of $35.7 million to its net capitalized costs and a deferred income tax credit of $12.7 million related to the full-cost ceiling limitation. These charges are reflected in the Company’s consolidated statement of operations for the year ended December 31, 2011. | |
As a non-cash item, the full-cost ceiling impairment impacts the accumulated depletion and the net carrying value of the Company’s assets on its balance sheet, as well as the corresponding shareholders’ equity, but it has no impact on the Company’s net cash flows as reported. Changes in oil and natural gas production rates, oil and natural gas prices, reserves estimates, future development costs and other factors will determine the Company’s actual ceiling test computation and impairment analyses in future periods. | |
Capitalized costs of oil and natural gas properties are amortized using the unit-of-production method based upon production and estimates of proved reserves quantities. Unproved and unevaluated property costs are excluded from the amortization base used to determine depletion. Unproved and unevaluated properties are assessed for possible impairment on a periodic basis based upon changes in operating or economic conditions. This assessment includes consideration of the following factors, among others: the assignment of proved reserves, geological and geophysical evaluations, intent to drill, remaining lease term and drilling activity and results. Upon impairment, the costs of the unproved and unevaluated properties are immediately included in the amortization base. Exploratory dry holes are included in the amortization base immediately upon determination that the well is not productive. | |
Sales of oil and natural gas properties are accounted for as adjustments to net capitalized costs with no gain or loss recognized, unless such adjustments would significantly alter the relationship between net capitalized costs and proved reserves of oil and natural gas. All costs related to production activities and maintenance and repairs are expensed as incurred. Significant workovers that increase the properties’ reserves are capitalized. | |
Other property and equipment are recorded at historical cost. Computer equipment, furniture, software and other equipment are depreciated over their useful life (five to 10 years) using the straight-line method. Support equipment and facilities include the pipelines and salt water disposal systems owned by Longwood Gathering and Disposal Systems, LP and are depreciated over a 30-year useful life using the straight-line, mid-month convention method. Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. | |
Asset Retirement Obligations | ' |
Asset Retirement Obligations | |
The Company recognizes the fair value of an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The asset retirement obligation is recorded as a liability at its estimated present value, with an offsetting increase recognized in oil and natural gas properties or support equipment and facilities on the balance sheet. Periodic accretion of the discounted value of the estimated liability is recorded as an expense in the consolidated statement of operations. In general, the Company’s future asset retirement obligations relate to future costs associated with plugging and abandonment of its oil and natural gas wells, removal of equipment and facilities from leased acreage and returning such land to its original condition. The amounts recognized are based on numerous estimates and assumptions, including future retirement costs, future recoverable quantities of oil and natural gas, future inflation rates and the Company’s credit-adjusted risk-free interest rate. Revisions to the liability can occur due to changes in its estimate or if federal or state regulators enact new plugging and abandonment requirements. At the time of actual plugging and abandonment of its oil and natural gas wells, the Company includes any gain or loss associated with the operation in the amortization base to the extent that the actual costs are different from the estimated liability. | |
Derivative Financial Instruments | ' |
Derivative Financial Instruments | |
From time to time, the Company uses derivative financial instruments to mitigate its exposure to commodity price risk associated with oil, natural gas and natural gas liquids prices. These instruments consist of put and call options in the form of costless (or zero-cost) collars and swap contracts. Costless collars provide the Company with downside price protection through the purchase of a put option which is financed through the sale of a call option. Because the call option proceeds are used to offset the cost of the put option, these arrangements are initially “costless” to the Company. In the case of a costless collar, the put option and the call option have different fixed price components. In a swap contract, a floating price is exchanged for a fixed price over a specified period, providing downside price protection. The Company’s derivative financial instruments are recorded on the balance sheet as either an asset or a liability measured at fair value. The Company has elected not to apply hedge accounting for its existing derivative financial instruments, and as a result, the Company recognizes the change in derivative fair value between reporting periods currently in its consolidated statement of operations (see Note 11). The fair value of the Company’s derivative financial instruments is determined using industry-standard models that consider various inputs including: (i) quoted forward prices for commodities, (ii) time value and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Realized gains and realized losses from the settlement of derivative financial instruments and unrealized gains and unrealized losses from valuation changes in the remaining unsettled derivative financial instruments are reported under “Revenues” in the consolidated statement of operations. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company follows the sales method of accounting for its oil, natural gas and natural gas liquids revenues, whereby it recognizes revenue, net of royalties, on all oil, natural gas and natural gas liquids sold to purchasers regardless of whether the sales are proportionate to its ownership in the property. Under this method, revenue is recognized at the time oil, natural gas and natural gas liquids are produced and sold, and the Company accrues for revenue earned but not yet received. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
Effective January 1, 2012, the Board of Directors adopted the 2012 Long-Term Incentive Plan (the “2012 Incentive Plan”). The 2012 Incentive Plan was also approved by the Company’s shareholders at its Annual Meeting of Shareholders on June 7, 2012. During 2013 and 2012, all stock option awards granted under the 2012 Incentive Plan were non-qualified options and the associated compensation expense is recognized over the vesting period, which is typically three or four years. All stock option awards granted in 2013 and 2012 are classified as equity instruments due to the methods of exercise specified in the 2012 Incentive Plan. Compensation expense for restricted stock and restricted stock unit grants awarded in 2013 and 2012 was recognized immediately or over the vesting period, which is typically one to four years. | |
The Company did not grant any stock option awards in 2011. Prior to 2011, all stock option awards were granted under the 2003 Stock and Incentive Plan (the “2003 Plan”), and since November 22, 2010, these awards have been accounted for as liability instruments. No additional stock-based compensation will be awarded under the 2003 Plan. Non-qualified stock option grants awarded under the 2003 Plan typically vested upon issuance, while incentive stock option grants awarded under the 2003 Plan typically vest over four years, and the associated compensation expense is recognized on a straight-line basis over the vesting period. Compensation expense for restricted stock grants awarded under the 2003 Plan was recognized immediately or over the vesting period, which was typically three years. | |
At December 31, 2013, 2012 and 2011, the Company used the fair value method to measure and recognize the liability and equity associated with its outstanding stock options. | |
Prior to November 22, 2010, all of the Company’s then-outstanding stock options were classified as equity instruments, with all stock-based compensation expense measured on the date of grant and recognized over the vesting period, if any. On November 22, 2010, the Company changed its method of accounting for its then-outstanding stock options, reclassifying all of its then-outstanding stock options from equity to liability instruments. This change was made as a result of the Company purchasing shares from certain of its employees to assist them in the exercise of outstanding options of the Company’s Class A common stock. At December 31, 2013, the Company continues to account for all outstanding stock options granted under the 2003 Plan as liability instruments. | |
Income Taxes | ' |
Income Taxes | |
The Company accounts for income taxes using the asset and liability approach for financial accounting and reporting. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and provides a valuation allowance for the portion of any deferred tax assets where the likelihood of realizing an income tax benefit in the future does not meet the more likely than not criteria for recognition. | |
The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Management believes that the material positions taken by the Company would more likely than not be sustained by examination. At December 31, 2013 and 2012, the Company had not established any reserves for, nor recorded any unrecognized tax benefits related to, uncertain tax positions. | |
When necessary, the Company would include interest assessed by taxing authorities in “Interest expense” and penalties related to income taxes in “Other expense” on its consolidated statements of operations. | |
Earnings Per Common Share | ' |
Earnings Per Common Share | |
The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share, which includes the effect of all potentially dilutive securities, unless their impact is anti-dilutive. | |
Fair Value Measurements | ' |
Fair Value Measurements | |
The Company measures and reports certain assets and liabilities on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company follows Financial Accounting Standards Board (“FASB”) guidance establishing a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. | |
Credit Risk | ' |
Credit Risk | |
The Company’s cash is held in financial institutions and at times these amounts exceed the insurance limits of the Federal Deposit Insurance Corporation. Management believes, however, that the Company’s counterparty risks are minimal based on the reputation and history of the institutions selected. | |
The Company uses derivative financial instruments to mitigate its exposure to oil, natural gas and natural gas liquids price volatility. These transactions expose the Company to potential credit risk from its counterparties. Accounts receivable constitute the principal component of additional credit risk to which the Company may be exposed. The Company believes that any credit risk posed is insignificant and is offset by the creditworthiness of its customer base and industry partners. | |
Risks and Uncertainties | ' |
Risks and Uncertainties | |
As an oil and natural gas exploration and production company focused on finding and developing its own prospects and reserves, the Company’s success is highly dependent on the results of its exploration and development program. Exploration activities involve numerous risks, including the risk that no commercially productive oil or natural gas reserves will be discovered. In addition, there are uncertainties as to the future costs or timing of drilling, completing and producing wells. Poor results from the Company’s exploration and development activities could limit the Company’s ability to replace and grow reserves and materially and adversely affect the Company’s financial position, results of operations and cash flows. | |
Estimating oil and natural gas reserves is complex and is inexact because of the numerous uncertainties inherent in the process. The process relies on interpretations of available geological, geophysical, petrophysical, engineering and production data. The extent, quality and reliability of both the data and the associated interpretations of that data can vary. The process also requires certain economic assumptions, including, but not limited to, oil and natural gas prices, drilling, completion and operating expenses, capital expenditures and taxes. Actual future production, oil and natural gas prices, revenues, taxes, development expenditures, operating expenses and quantities of recoverable oil and natural gas most likely will vary from the Company’s estimates. Any significant variance could materially and adversely affect the Company’s future reserves estimates, financial position, results of operations and cash flows. | |
Historically, the market for oil, natural gas and natural gas liquids has experienced significant price fluctuations, and this has been particularly evident in recent years. Oil, natural gas and natural gas liquids prices are impacted by supply and demand, both domestic and international, seasonal variations caused by changing weather conditions, political conditions, governmental regulations, the availability, proximity and capacity of gathering, processing and transportation systems for natural gas and natural gas liquids and numerous other factors. Increases or decreases in prices received could have a significant and material impact on the Company’s future reserves estimates, financial position, results of operations and cash flows. | |
To mitigate its exposure to fluctuations in oil, natural gas and natural gas liquids prices, the Company, from time to time, enters into hedging arrangements with respect to a portion of its oil, natural gas and natural gas liquids production. Decisions as to whether, at what price and what production volumes to hedge are difficult and depend on market conditions and the Company’s forecast of future production and commodity prices, and the Company may not always employ the optimal hedging strategy. | |
The federal, state and local governments in the areas in which the Company operates or has assets impose taxes on the oil and natural gas products sold, and sales and use taxes are charged on significant portions of the Company’s drilling, completion and operating costs. Many states have raised state taxes on energy sources or state taxes associated with the extraction of hydrocarbons, and additional increases may occur. In addition, there has been a significant amount of discussion by legislators and presidential administrations concerning a variety of energy tax proposals. President Obama has proposed sweeping changes in federal laws on the income taxation of small oil and natural gas exploration and production companies like the Company. Among other issues, President Obama has proposed to eliminate allowing small oil and natural gas companies to deduct intangible drilling costs as incurred and percentage depletion. Changes to tax laws could materially and adversely affect the Company’s future financial position, results of operations and cash flows. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Balance Sheet. In January 2013, the FASB issued Accounting Standards Update, or ASU, 2013-01, Balance Sheet. The ASU clarifies the scope of ASU 2011-11 to limit the application of ASU 2011-11 to derivatives accounted for in accordance with Accounting Standards Codification, or ASC, 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. The Company adopted ASU 2013-01 effective January 1, 2013, together with the adoption of ASU 2011-01. The adoption of ASUs 2013-01 and 2011-11 did not have a material effect on the Company’s consolidated financial statements, but did require certain additional disclosures (see Note 11). | |
Balance Sheet. In December 2011, the FASB issued ASU 2011-11, Balance Sheet. The requirements amend the disclosure requirements to offsetting in ASC 210-20-50. The amendments require enhanced disclosures by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either ASC 210-20-45 or ASC 815-10-45 or (2) subject to an enforceable master netting agreement or similar agreement, irrespective of whether they are offset in accordance with either ASC 210-20-45 or ASC 815-10-45. The Company adopted ASU 2011-11 effective January 1, 2013, together with the adoption of ASU 2013-01. The adoption of ASUs 2011-11 and 2013-01 did not have a material effect on the Company’s consolidated financial statements, but did require certain additional disclosures (see Note 11). |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Reconciliations of basic and diluted distributed and undistributed earnings (loss) per common share | ' | ||||||||||||
The following are reconciliations of the numerators and denominators used to compute the Company’s basic and diluted distributed and undistributed earnings per common share as reported for the years ended December 31, 2013, 2012 and 2011 (in thousands, except per share data). | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income (loss) — numerator | |||||||||||||
Net income (loss) | $ | 45,094 | $ | (33,261 | ) | $ | (10,309 | ) | |||||
Less dividends to Class B shareholders — distributed earnings | — | (28 | ) | (275 | ) | ||||||||
Undistributed earnings (loss) | $ | 45,094 | $ | (33,289 | ) | $ | (10,584 | ) | |||||
Weighted average common shares outstanding — denominator | |||||||||||||
Basic | |||||||||||||
Class A | 58,777 | 53,852 | 41,687 | ||||||||||
Class B | — | 105 | 1,031 | ||||||||||
Total | 58,777 | 53,957 | 42,718 | ||||||||||
Diluted | |||||||||||||
Class A | |||||||||||||
Weighted average common shares outstanding for basic earnings (loss) per share | 58,777 | 53,852 | 41,687 | ||||||||||
Dilutive effect of options and restricted stock units | 152 | — | — | ||||||||||
Class A weighted average common shares outstanding — diluted | 58,929 | 53,852 | 41,687 | ||||||||||
Class B | |||||||||||||
Weighted average common shares outstanding — no associated dilutive shares | — | 105 | 1,031 | ||||||||||
Total diluted weighted average common shares outstanding | 58,929 | 53,957 | 42,718 | ||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Earnings (loss) per common share | |||||||||||||
Basic | |||||||||||||
Class A | |||||||||||||
Distributed earnings | $ | — | $ | — | $ | — | |||||||
Undistributed earnings (loss) | $ | 0.77 | $ | (0.62 | ) | $ | (0.25 | ) | |||||
Total | $ | 0.77 | $ | (0.62 | ) | $ | (0.25 | ) | |||||
Class B | |||||||||||||
Distributed earnings | $ | — | $ | 0.27 | $ | 0.27 | |||||||
Undistributed earnings (loss) | $ | — | $ | (0.62 | ) | $ | (0.25 | ) | |||||
Total | $ | — | $ | (0.35 | ) | $ | 0.02 | ||||||
Diluted | |||||||||||||
Class A | |||||||||||||
Distributed earnings | $ | — | $ | — | $ | — | |||||||
Undistributed earnings (loss) | $ | 0.77 | $ | (0.62 | ) | $ | (0.25 | ) | |||||
Total | $ | 0.77 | $ | (0.62 | ) | $ | (0.25 | ) | |||||
Class B | |||||||||||||
Distributed earnings | $ | — | $ | 0.27 | $ | 0.27 | |||||||
Undistributed earnings (loss) | $ | — | $ | (0.62 | ) | $ | (0.25 | ) | |||||
Total | $ | — | $ | (0.35 | ) | $ | 0.02 | ||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||||||||||
Summary of the Company's property and equipment | ' | ||||||||||||||||||||
The following table presents a summary of the Company’s property and equipment balances as of December 31, 2013 and 2012 (in thousands). | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Oil and natural gas properties | |||||||||||||||||||||
Evaluated (subject to amortization) | $ | 1,090,656 | $ | 763,527 | |||||||||||||||||
Unproved and unevaluated (not subject to amortization) | |||||||||||||||||||||
Incurred in 2013 | 82,628 | — | |||||||||||||||||||
Incurred in 2012 | 23,341 | 36,488 | |||||||||||||||||||
Incurred in 2011 | 10,982 | 24,138 | |||||||||||||||||||
Incurred in 2010 and prior | 77,355 | 89,049 | |||||||||||||||||||
Total unproved and unevaluated | 194,306 | 149,675 | |||||||||||||||||||
Total oil and natural gas properties | 1,284,962 | 913,202 | |||||||||||||||||||
Accumulated depletion | (463,091 | ) | (344,609 | ) | |||||||||||||||||
Net oil and natural gas properties | 821,871 | 568,593 | |||||||||||||||||||
Other property and equipment | |||||||||||||||||||||
Computer equipment | 1,044 | 834 | |||||||||||||||||||
Furniture | 1,057 | 793 | |||||||||||||||||||
Software | 1,456 | 1,355 | |||||||||||||||||||
Other equipment | 252 | 196 | |||||||||||||||||||
Leasehold improvements | 991 | 644 | |||||||||||||||||||
Support equipment and facilities | 25,110 | 23,436 | |||||||||||||||||||
Total other property and equipment | 29,910 | 27,258 | |||||||||||||||||||
Accumulated depreciation | (5,904 | ) | (4,761 | ) | |||||||||||||||||
Net other property and equipment | 24,006 | 22,497 | |||||||||||||||||||
Net property and equipment | $ | 845,877 | $ | 591,090 | |||||||||||||||||
Breakdown of the Company's unproved and unevaluated property costs not subject to amortization | ' | ||||||||||||||||||||
The following table provides a breakdown of the Company’s unproved and unevaluated property costs not subject to amortization as of December 31, 2013 and the year in which these costs were incurred (in thousands). | |||||||||||||||||||||
Description | 2013 | 2012 | 2011 | 2010 and | Total | ||||||||||||||||
prior | |||||||||||||||||||||
Costs incurred for | |||||||||||||||||||||
Property acquisition | $ | 66,582 | $ | 22,944 | $ | 9,050 | $ | 77,355 | $ | 175,931 | |||||||||||
Exploration wells | 12,901 | 247 | 1,932 | — | 15,080 | ||||||||||||||||
Development wells | 3,145 | — | — | — | 3,145 | ||||||||||||||||
Capitalized interest | — | 150 | — | — | 150 | ||||||||||||||||
Total | $ | 82,628 | $ | 23,341 | $ | 10,982 | $ | 77,355 | $ | 194,306 | |||||||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||||||
Schedule of changes in Company's asset retirement obligations | ' | ||||||||
The following table summarizes the changes in the Company’s asset retirement obligations for the years ended December 31, 2013 and 2012 (in thousands). | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Beginning asset retirement obligations | $ | 5,769 | $ | 4,270 | |||||
Liabilities incurred during period | 936 | 1,243 | |||||||
Liabilities settled during period | (103 | ) | — | ||||||
Revisions in estimated cash flows | 534 | — | |||||||
Accretion expense | 348 | 256 | |||||||
Ending asset retirement obligations | 7,484 | 5,769 | |||||||
Less: current asset retirement obligations (1) | (175 | ) | (660 | ) | |||||
Long-term asset retirement obligations | $ | 7,309 | $ | 5,109 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Summary of net deferred tax position | ' | ||||||||||||
The Company’s net deferred tax position as of December 31, 2013 and 2012, respectively, is as follows (in thousands). | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets | |||||||||||||
Property and equipment | $ | 62 | $ | 233 | |||||||||
Unrealized loss on derivatives | 965 | — | |||||||||||
Other | 609 | 869 | |||||||||||
Total current deferred tax assets | 1,636 | 1,102 | |||||||||||
Valuation allowance on current deferred tax assets | — | (202 | ) | ||||||||||
Total current deferred tax assets, net of valuation allowance | 1,636 | 900 | |||||||||||
Current deferred tax liabilities | |||||||||||||
Unrealized gain on derivatives | — | (1,311 | ) | ||||||||||
Net current deferred tax assets (liabilities) | $ | 1,636 | $ | (411 | ) | ||||||||
Non-current deferred tax assets | |||||||||||||
Unrealized loss on derivatives | $ | 28 | $ | — | |||||||||
Net operating loss carryforwards | 63,007 | 44,654 | |||||||||||
Alternative minimum tax carryforward | 7,064 | 6,660 | |||||||||||
Total non-current deferred tax assets | 70,099 | 51,314 | |||||||||||
Valuation allowance on non-current deferred tax assets | (30 | ) | (10,058 | ) | |||||||||
Total non-current deferred tax assets, net of valuation allowance | 70,069 | 41,256 | |||||||||||
Non-current deferred tax liabilities | |||||||||||||
Unrealized gain on derivatives | — | (262 | ) | ||||||||||
Property and equipment | (76,719 | ) | (36,363 | ) | |||||||||
Other | (4,279 | ) | (4,220 | ) | |||||||||
Total non-current deferred tax liabilities | (80,998 | ) | (40,845 | ) | |||||||||
Net non-current deferred tax (liabilities) assets | $ | (10,929 | ) | $ | 411 | ||||||||
Income tax expense reconciled to the tax computed at the statutory federal rate | ' | ||||||||||||
The income tax expense reconciled to the tax computed at the statutory federal rate for the years ended December 31, 2013, 2012 and 2011, respectively, is as follows (in thousands). | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current income tax provision (benefit) | |||||||||||||
State income tax | $ | — | $ | — | $ | (46 | ) | ||||||
Federal alternative minimum tax | 404 | — | — | ||||||||||
Net current income tax provision (benefit) | 404 | — | (46 | ) | |||||||||
Deferred income tax provision (benefit) | |||||||||||||
Federal tax expense at statutory rate (1) | 19,177 | (11,767 | ) | (5,319 | ) | ||||||||
Statutory depletion carryforward | — | — | 231 | ||||||||||
State income tax | 431 | (819 | ) | (435 | ) | ||||||||
Nondeductible expense | — | (122 | ) | 48 | |||||||||
Permanent differences (2) | 319 | 1,018 | — | ||||||||||
Federal alternative minimum tax | (404 | ) | — | — | |||||||||
Change in federal valuation allowance | (8,885 | ) | 10,260 | — | |||||||||
Change in state valuation allowance | (1,345 | ) | — | — | |||||||||
Net deferred income tax provision (benefit) | 9,293 | (1,430 | ) | (5,475 | ) | ||||||||
Total income tax provision (benefit) | $ | 9,697 | $ | (1,430 | ) | $ | (5,521 | ) | |||||
__________________ | |||||||||||||
-1 | The statutory federal tax rate was 35% for the year ended December 31, 2013 and 34% for the years ended December 31, 2012 and 2011. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||||||||||||||
Summarized information about stock options outstanding | ' | ||||||||||||||||||||||||||||
Summarized information about stock options outstanding at December 31, 2013 under the Company’s 2003 Plan and the 2012 Incentive Plan is as follows (in thousands, except price data). | |||||||||||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||||||||||
options | average | ||||||||||||||||||||||||||||
exercise price | |||||||||||||||||||||||||||||
Options outstanding at December 31, 2012 | 1,067 | $ | 10.19 | ||||||||||||||||||||||||||
Options granted | 874 | 8.78 | |||||||||||||||||||||||||||
Options exercised | (5 | ) | 7.77 | ||||||||||||||||||||||||||
Options forfeited | (59 | ) | 9.86 | ||||||||||||||||||||||||||
Options expired | (449 | ) | 10.3 | ||||||||||||||||||||||||||
Options outstanding at December 31, 2013 | 1,428 | $ | 9.32 | ||||||||||||||||||||||||||
Summarized information about outstanding and exercisable stock option | ' | ||||||||||||||||||||||||||||
Options outstanding at | Options exercisable at | ||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2013 | ||||||||||||||||||||||||||||
Range of exercise prices | Shares | Weighted | Weighted | Shares | Weighted | ||||||||||||||||||||||||
outstanding | average | average | exercisable | average | |||||||||||||||||||||||||
remaining | exercise | exercise | |||||||||||||||||||||||||||
contractual | price | price | |||||||||||||||||||||||||||
life | |||||||||||||||||||||||||||||
$7.50 - $10.00 | 938 | 4.30 years | $ | 8.33 | 79 | $ | 8.9 | ||||||||||||||||||||||
$10.39 - $13.03 | 451 | 3.50 years | $ | 10.56 | 15 | $ | 11 | ||||||||||||||||||||||
$17.80 - $19.05 | 39 | 4.89 years | $ | 18.73 | — | $ | — | ||||||||||||||||||||||
Summary of the non-vested restricted stock and restricted stock units | ' | ||||||||||||||||||||||||||||
A summary of the non-vested restricted stock and restricted stock units as of December 31, 2013 is presented below (in thousands, except fair value). | |||||||||||||||||||||||||||||
Restricted Stock | Restricted Stock Units | ||||||||||||||||||||||||||||
Service Based | Performance Based | Service Based | Performance Based | ||||||||||||||||||||||||||
Non-vested restricted stock and | Shares | Weighted | Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||||||
restricted stock units | average | average | average | average | |||||||||||||||||||||||||
fair | fair | fair | fair | ||||||||||||||||||||||||||
value | value(1) | value | value(1) | ||||||||||||||||||||||||||
Non-vested at | 182 | $ | 9.72 | 110 | $ | 13.24 | 52 | $ | 10 | 110 | $ | — | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Granted | 378 | 9.07 | — | — | 51 | 11.31 | — | — | |||||||||||||||||||||
Vested | (1 | ) | 8.43 | — | — | (17 | ) | 10 | — | — | |||||||||||||||||||
Forfeited | (95 | ) | 8.57 | (10 | ) | 13.24 | — | — | (10 | ) | — | ||||||||||||||||||
Non-vested at | 464 | $ | 9.43 | 100 | $ | 13.24 | 86 | $ | 10.79 | 100 | $ | — | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||||
-1 | The fair value of these restricted stock units is reflected in the fair value of the performance based restricted stock, which was estimated based on the most likely outcome of the award as determined by the Monte Carlo method. | ||||||||||||||||||||||||||||
2003 Stock and Incentive Plan [Member] | ' | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||||||||||||||
Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan | ' | ||||||||||||||||||||||||||||
The fair value of stock option awards outstanding under the 2003 Plan was estimated using the following weighted average assumptions at December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Stock option pricing model | Black Scholes Merton | Black Scholes Merton | Black Scholes Merton | ||||||||||||||||||||||||||
Expected option life | 2.44 years | 0.89 years | 1.04 years | ||||||||||||||||||||||||||
Risk-free interest rate | 0.69% | 0.25% | 0.37% | ||||||||||||||||||||||||||
Volatility | 51.51% | 54.28% | 61.41% | ||||||||||||||||||||||||||
Dividend yield | —% | —% | —% | ||||||||||||||||||||||||||
Estimated forfeiture rate | 0.79% | 0.70% | 1.04% | ||||||||||||||||||||||||||
2012 Incentive Plan [Member] | ' | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||||||||||||||
Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan | ' | ||||||||||||||||||||||||||||
The weighted average grant date fair value for stock option awards outstanding under the 2012 Incentive Plan was estimated using the following weighted average assumptions during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Stock option pricing model | Black Scholes Merton | Black Scholes Merton | |||||||||||||||||||||||||||
Expected option life | 4.0 years | 4.4 years | |||||||||||||||||||||||||||
Risk-free interest rate | 0.69% | 0.71% | |||||||||||||||||||||||||||
Volatility | 58.65% | 71.16% | |||||||||||||||||||||||||||
Dividend yield | —% | —% | |||||||||||||||||||||||||||
Estimated forfeiture rate | 6.37% | 5.46% | |||||||||||||||||||||||||||
Weighted average fair value of stock option awards granted during the year | $3.91 | $5.95 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Summary of contracts for oil and natural gas | ' | |||||||||||||||||
The following is a summary of the Company’s open costless collar contracts for oil and natural gas and open swap contracts for NGL at December 31, 2013. | ||||||||||||||||||
Notional Quantity (Bbl/month) | Price Floor ($/Bbl) | Price Ceiling ($/Bbl) | Fair Value of Asset (Liability) (thousands) | |||||||||||||||
Commodity | Calculation Period | |||||||||||||||||
Oil | 01/01/2014 - 06/30/2014 | 8,000 | $ | 90 | $ | 114 | $ | 44 | ||||||||||
Oil | 01/01/2014 - 06/30/2014 | 12,000 | 90 | 115.5 | 67 | |||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 15,000 | 85 | 97.5 | (309 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 30,000 | 85 | 98 | (560 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 12,000 | 85 | 100 | (90 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 12,200 | 85 | 100.4 | (70 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 10,000 | 85 | 100.55 | (52 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 15,000 | 87 | 97 | (294 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 20,000 | 88 | 95.6 | (536 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 20,000 | 90 | 97 | (253 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 12,000 | 90 | 97.9 | (80 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 15,000 | 90 | 97.9 | (98 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 15,000 | 90 | 98 | (101 | ) | ||||||||||||
Oil | 01/01/2014 - 12/31/2014 | 15,000 | 90 | 101.15 | 132 | |||||||||||||
Total open oil costless collar contracts | (2,200 | ) | ||||||||||||||||
Notional Quantity (MMBtu/month) | Price Floor ($/MMBtu) | Price Ceiling ($/MMBtu) | Fair Value of Asset (Liability) (thousands) | |||||||||||||||
Commodity | Calculation Period | |||||||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3 | 5.15 | (60 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3.25 | 5.21 | (34 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3.25 | 5.22 | (34 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3.25 | 5.37 | (22 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3.25 | 5.42 | (18 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3.5 | 4.9 | (37 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2014 | 100,000 | 3.75 | 4.77 | 3 | |||||||||||||
Natural Gas | 01/01/2014 - 12/31/2015 | 100,000 | 3.75 | 4.36 | (237 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2015 | 100,000 | 3.75 | 4.45 | (158 | ) | ||||||||||||
Natural Gas | 01/01/2014 - 12/31/2015 | 100,000 | 3.75 | 4.6 | (24 | ) | ||||||||||||
Natural Gas | 04/01/2014 - 12/31/2014 | 100,000 | 3.75 | 4.75 | 6 | |||||||||||||
Natural Gas | 01/01/2015 - 03/31/2015 | 200,000 | 4 | 4.84 | (3 | ) | ||||||||||||
Natural Gas | 01/01/2015 - 12/31/2015 | 100,000 | 3.75 | 4.65 | (9 | ) | ||||||||||||
Natural Gas | 01/01/2015 - 12/31/2015 | 200,000 | 3.75 | 5.04 | 182 | |||||||||||||
Total open natural gas costless collar contracts | (445 | ) | ||||||||||||||||
Notional Quantity (Gal/month) | Fixed Price ($/Gal) | Fair Value of Asset (Liability) (thousands) | ||||||||||||||||
Commodity | Calculation Period | |||||||||||||||||
Propane | 01/01/2014 - 12/31/2014 | 116,000 | 0.95 | (247 | ) | |||||||||||||
Propane | 01/01/2014 - 12/31/2014 | 84,000 | 1.143 | 32 | ||||||||||||||
Propane | 01/01/2014 - 12/31/2014 | 68,000 | 1.15 | 32 | ||||||||||||||
Propane | 01/01/2014 - 12/31/2014 | 116,000 | 1.003 | (150 | ) | |||||||||||||
Propane | 01/01/2014 - 12/31/2014 | 60,000 | 1.015 | (69 | ) | |||||||||||||
Propane | 01/01/2015 - 12/31/2015 | 150,000 | 1 | (58 | ) | |||||||||||||
Propane | 01/01/2015 - 12/31/2015 | 68,000 | 1.073 | 33 | ||||||||||||||
Normal Butane | 01/01/2014 - 12/31/2014 | 17,500 | 1.54 | 47 | ||||||||||||||
Normal Butane | 01/01/2014 - 12/31/2014 | 45,500 | 1.55 | 122 | ||||||||||||||
Isobutane | 01/01/2014 - 12/31/2014 | 22,000 | 1.64 | 78 | ||||||||||||||
Isobutane | 01/01/2014 - 12/31/2014 | 37,000 | 1.64 | 140 | ||||||||||||||
Natural Gasoline | 01/01/2014 - 12/31/2014 | 30,000 | 1.97 | (35 | ) | |||||||||||||
Natural Gasoline | 01/01/2014 - 12/31/2014 | 41,000 | 2 | (33 | ) | |||||||||||||
Total open NGL swap contracts | (108 | ) | ||||||||||||||||
Total open derivative financial instruments | $ | (2,753 | ) | |||||||||||||||
Summary of offsetting assets | ' | |||||||||||||||||
The following table presents the gross asset balances of the Company’s derivative financial instruments, the amounts subject to master netting arrangements, the amounts that the Company has presented on a net basis, the amounts subject to master netting across different commodity types that were presented on a gross basis and the location of these balances in its consolidated balance sheet as of December 31, 2012 (in thousands). | ||||||||||||||||||
Derivative Instruments | Gross | Gross amounts | Net amounts of | Amounts subject to master netting arrangements presented on a gross basis | ||||||||||||||
amounts of | netted in the | assets | ||||||||||||||||
recognized | consolidated | presented in the | ||||||||||||||||
assets | balance sheet | consolidated | ||||||||||||||||
balance sheet | ||||||||||||||||||
Counterparty A | ||||||||||||||||||
Current assets | $ | 6,445 | $ | (2,373 | ) | $ | 4,072 | $ | — | |||||||||
Other assets | 1,096 | (370 | ) | 726 | — | |||||||||||||
Counterparty B | ||||||||||||||||||
Current assets | 530 | (224 | ) | 306 | 82 | |||||||||||||
Other assets | 384 | (339 | ) | 45 | — | |||||||||||||
Total | $ | 8,455 | $ | (3,306 | ) | $ | 5,149 | $ | 82 | |||||||||
The following table presents the gross asset balances of the Company’s derivative financial instruments, the amounts subject to master netting arrangements, the amounts that the Company has presented on a net basis, the amounts subject to master netting across different commodity types that were presented on a gross basis and the location of these balances in its consolidated balance sheet as of December 31, 2013 (in thousands). | ||||||||||||||||||
Derivative Instruments | Gross | Gross amounts | Net amounts of | Amounts subject to master netting arrangements presented on a gross basis | ||||||||||||||
amounts of | netted in the | assets | ||||||||||||||||
recognized | consolidated | presented in the | ||||||||||||||||
assets | balance sheet | consolidated | ||||||||||||||||
balance sheet | ||||||||||||||||||
Counterparty A | ||||||||||||||||||
Current assets | $ | 1,746 | $ | (1,746 | ) | $ | — | $ | — | |||||||||
Other assets | — | — | — | — | ||||||||||||||
Counterparty B | ||||||||||||||||||
Current assets | 1,371 | (1,371 | ) | — | — | |||||||||||||
Other assets | 841 | (668 | ) | 173 | — | |||||||||||||
Counterparty C | ||||||||||||||||||
Current assets | 2,886 | (2,873 | ) | 13 | — | |||||||||||||
Other assets | 1,046 | (1,046 | ) | — | — | |||||||||||||
Counterparty D | ||||||||||||||||||
Current assets | 6 | — | 6 | — | ||||||||||||||
Other assets | — | — | — | — | ||||||||||||||
Total | $ | 7,896 | $ | (7,704 | ) | $ | 192 | $ | — | |||||||||
Summary of offsetting liabilities | ' | |||||||||||||||||
The following table presents the gross liability balances of the Company’s derivative financial instruments, the amounts subject to master netting arrangements, the amounts that the Company has presented on a net basis, the amounts subject to master netting across different commodity types that were presented on a gross basis and the location of these balances in its consolidated balance sheet as of December 31, 2013 (in thousands). | ||||||||||||||||||
Derivative Instruments | Gross | Gross amounts | Net amounts of | Amounts subject to master netting arrangements presented on a gross basis | ||||||||||||||
amounts of | netted in the | liabilities | ||||||||||||||||
recognized | consolidated | presented in the | ||||||||||||||||
liabilities | balance sheet | consolidated | ||||||||||||||||
balance sheet | ||||||||||||||||||
Counterparty A | ||||||||||||||||||
Current liabilities | $ | 2,550 | $ | (1,746 | ) | $ | 804 | $ | — | |||||||||
Long-term liabilities | — | — | — | — | ||||||||||||||
Counterparty B | ||||||||||||||||||
Current liabilities | 2,136 | (1,371 | ) | 765 | — | |||||||||||||
Long-term liabilities | 668 | (668 | ) | — | — | |||||||||||||
Counterparty C | ||||||||||||||||||
Current liabilities | 3,996 | (2,873 | ) | 1,123 | — | |||||||||||||
Long-term liabilities | 1,299 | (1,046 | ) | 253 | — | |||||||||||||
Counterparty D | ||||||||||||||||||
Current liabilities | — | — | — | — | ||||||||||||||
Long-term liabilities | — | — | — | — | ||||||||||||||
Total | $ | 10,649 | $ | (7,704 | ) | $ | 2,945 | $ | — | |||||||||
The following table presents the gross liability balances of the Company’s derivative financial instruments, the amounts subject to master netting arrangements, the amounts that the Company has presented on a net basis, the amounts subject to master netting across different commodity types that were presented on a gross basis and the location of these balances in its consolidated balance sheet as of December 31, 2012 (in thousands). | ||||||||||||||||||
Derivative Instruments | Gross | Gross amounts | Net amounts of | Amounts subject to master netting arrangements presented on a gross basis | ||||||||||||||
amounts of | netted in the | liabilities | ||||||||||||||||
recognized | consolidated | presented in the | ||||||||||||||||
liabilities | balance sheet | consolidated | ||||||||||||||||
balance sheet | ||||||||||||||||||
Counterparty A | ||||||||||||||||||
Current liabilities | $ | 2,373 | $ | (2,373 | ) | $ | — | $ | — | |||||||||
Long-term liabilities | 370 | (370 | ) | — | — | |||||||||||||
Counterparty B | ||||||||||||||||||
Current liabilities | 894 | (224 | ) | 670 | 82 | |||||||||||||
Long-term liabilities | 339 | (339 | ) | — | — | |||||||||||||
Total | $ | 3,976 | $ | (3,306 | ) | $ | 670 | $ | 82 | |||||||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ' | |||||||||||||||||
The following table summarizes the location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments. | ||||||||||||||||||
Location in | Year Ended December 31, | |||||||||||||||||
Type of Instrument | Statement of Operations | 2013 | 2012 | 2011 | ||||||||||||||
Derivative Instrument | ||||||||||||||||||
Oil | Revenues: Realized (loss) gain on derivatives | $ | (2,408 | ) | $ | 2,047 | $ | — | ||||||||||
Natural Gas | Revenues: Realized gain on derivatives | 831 | 11,892 | 7,106 | ||||||||||||||
NGL | Revenues: Realized gain on derivatives | 668 | 21 | — | ||||||||||||||
Realized (loss) gain on derivatives | (909 | ) | 13,960 | 7,106 | ||||||||||||||
Oil | Revenues: Unrealized (loss) gain on derivatives | (5,319 | ) | 3,673 | (554 | ) | ||||||||||||
Natural Gas | Revenues: Unrealized (loss) gain on derivatives | (1,580 | ) | (8,700 | ) | 5,692 | ||||||||||||
NGL | Revenues: Unrealized (loss) gain on derivatives | (333 | ) | 225 | — | |||||||||||||
Unrealized (loss) gain on derivatives | (7,232 | ) | (4,802 | ) | 5,138 | |||||||||||||
Total | $ | (8,141 | ) | $ | 9,158 | $ | 12,244 | |||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Summary of the valuation of the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis | ' | ||||||||||||||||
The following tables summarize the valuation of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis in accordance with the classifications provided above as of December 31, 2013 and 2012 (in thousands). | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
Description | December 31, 2013 using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets (Liabilities) | |||||||||||||||||
Oil, natural gas and NGL derivatives | $ | — | $ | 192 | $ | — | $ | 192 | |||||||||
Oil, natural gas and NGL derivatives | — | (2,945 | ) | — | (2,945 | ) | |||||||||||
Total | $ | — | $ | (2,753 | ) | $ | — | $ | (2,753 | ) | |||||||
Fair Value Measurements at | |||||||||||||||||
Description | December 31, 2012 using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets (Liabilities) | |||||||||||||||||
Certificates of deposit | $ | — | $ | 230 | $ | — | $ | 230 | |||||||||
Oil, natural gas and NGL derivatives | — | 5,149 | — | 5,149 | |||||||||||||
Oil, natural gas and NGL derivatives | — | (670 | ) | — | (670 | ) | |||||||||||
Total | $ | — | $ | 4,709 | $ | — | $ | 4,709 | |||||||||
Additions to asset retirement obligations and lease and well equipment inventory at fair value on a non-recurring basis | ' | ||||||||||||||||
The following tables summarize the valuation of the Company’s assets and liabilities that were accounted for at fair value on a non-recurring basis as of December 31, 2013 and 2012 (in thousands). | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
Description | December 31, 2013 using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets (Liabilities) | |||||||||||||||||
Asset retirement obligations | $ | — | $ | — | $ | (1,470 | ) | $ | (1,470 | ) | |||||||
Total | $ | — | $ | — | $ | (1,470 | ) | $ | (1,470 | ) | |||||||
Fair Value Measurements at | |||||||||||||||||
Description | December 31, 2012 using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets (Liabilities) | |||||||||||||||||
Asset retirement obligations | $ | — | $ | — | $ | (1,243 | ) | $ | (1,243 | ) | |||||||
Lease and well equipment inventory | — | — | 34 | 34 | |||||||||||||
Total | $ | — | $ | — | $ | (1,209 | ) | $ | (1,209 | ) | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of future minimum lease payments required under the office lease agreement | ' | ||||
The following is a schedule of future minimum lease payments required under the office lease agreement as of December 31, 2013 (in thousands). | |||||
Year Ending December 31, | Amount | ||||
2014 | $ | 812 | |||
2015 | 831 | ||||
2016 | 852 | ||||
2017 | 872 | ||||
2018 | 893 | ||||
Thereafter | 3,329 | ||||
Total | $ | 7,589 | |||
Summary of aggregate undiscounted minimum commitments | ' | ||||
Under this agreement, if the Company does not meet 80% of the maximum thermal quantity transportation and pro |
Supplemental_Disclosures_Table
Supplemental Disclosures (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Disclosures [Abstract] | ' | ||||||||||||
Summary of current accrued liabilities | ' | ||||||||||||
The following table summarizes the Company’s current accrued liabilities at December 31, 2013 and 2012 (in thousands). | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Accrued evaluated and unproved and unevaluated property costs | $ | 52,605 | $ | 45,592 | |||||||||
Accrued support equipment and facilities costs | — | 1,382 | |||||||||||
Accrued stock-based compensation | 56 | 65 | |||||||||||
Accrued lease operating expenses | 6,251 | 5,218 | |||||||||||
Accrued interest on borrowings under Credit Agreement | 141 | 255 | |||||||||||
Accrued asset retirement obligations | 175 | 660 | |||||||||||
Accrued partners’ share of joint interest charges | 1,173 | 3,597 | |||||||||||
Other | 3,586 | 2,410 | |||||||||||
Total accrued liabilities | $ | 63,987 | $ | 59,179 | |||||||||
Supplemental disclosures of cash flow information | ' | ||||||||||||
The following table provides supplemental disclosures of cash flow information for the years ended December 31, 2013, 2012 and 2011 (in thousands). | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash paid for interest expense, net of amounts capitalized | $ | 5,801 | $ | 780 | $ | 634 | |||||||
Asset retirement obligations related to mineral properties | 1,363 | 1,195 | 488 | ||||||||||
Asset retirement obligations related to support equipment and facilities | 3 | 49 | 12 | ||||||||||
Increase in liabilities for oil and natural gas properties capital expenditures | 7,548 | 24,847 | 1,864 | ||||||||||
Increase in liabilities for support equipment and facilities | 660 | 1,112 | 175 | ||||||||||
Issuance of restricted stock units for Board and advisor services | 274 | 73 | — | ||||||||||
Issuance of common stock for Board and advisor services | 57 | 71 | 230 | ||||||||||
(Decrease) increase in liabilities for accrued cost to issue equity | — | (332 | ) | (27 | ) | ||||||||
Stock-based compensation expense recognized as liability | 1,012 | (1,092 | ) | 2,102 | |||||||||
Transfer of inventory to oil and natural gas properties | 343 | 69 | 96 | ||||||||||
Nature_of_Operations_Details
Nature of Operations (Details) | Dec. 31, 2013 |
Subsidiaries | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of wholly owned subsidiaries | 4 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||
Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2011 | Jun. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
Purchasers | Subsidiaries | Purchasers | Purchasers | Machinery and Equipment [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Class A [Member] | Class B [Member] | Class B [Member] | Class B [Member] | Class B [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Sales Revenue, Goods, Net [Member] | Sales Revenue, Goods, Net [Member] | Sales Revenue, Goods, Net [Member] | Restricted stock [Member] | Restricted stock [Member] | Restricted stock [Member] | Restricted stock [Member] | Restricted stock [Member] | Restricted stock [Member] | Restricted stock [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | ||||||||
segment | Minimum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||||
Subsidiaries | |||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of wholly owned subsidiaries | ' | ' | ' | ' | ' | 4 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term investments with an original maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable due period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 days | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Billing date | ' | ' | ' | ' | ' | '30 days | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding days of account receivable | ' | ' | ' | ' | ' | '60 days | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized general and administrative costs | ' | ' | ' | ' | ' | ' | $3,700,000 | ' | $2,600,000 | ' | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized interest expense | ' | ' | ' | ' | ' | ' | 1,900,000 | ' | 1,600,000 | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Present value discounted percent of future net revenues of proved oil and natural gas reserves | ' | ' | ' | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average oil and natural gas prices | ' | ' | ' | ' | ' | 3.67 | 93.42 | 2.757 | 91.21 | 92.71 | 4.118 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net capitalized costs less related deferred income taxes exceeded the full-cost ceiling | 13,700,000 | ' | 23,000,000 | 21,300,000 | 2,300,000 | ' | ' | ' | 17,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charge of net capitalized costs | 21,200,000 | 26,700,000 | 35,700,000 | 33,200,000 | 3,600,000 | ' | 21,229,000 | ' | 63,475,000 | ' | 35,673,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income tax credit | 7,500,000 | ' | 12,700,000 | 11,900,000 | 1,300,000 | ' | ' | ' | 9,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '5 years | '5 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life using the straight-line | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of purchasers | ' | ' | ' | ' | ' | 5 | 5 | 3 | 3 | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81.00% | 67.00% | 52.00% | 87.00% | 74.00% | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested Period | ' | ' | ' | ' | ' | '4 years | '4 years | ' | ' | ' | ' | ' | '4 years | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | '4 years | '4 years | '1 year | '1 year | '3 years | ' | ' | '4 years | '3 years |
Stock-based compensation | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation (non-cash) expense | ' | ' | ' | ' | ' | ' | 3,897,000 | ' | 140,000 | ' | 2,406,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | 200,000 | ' | ' | ' | ' | 2,200,000 | -700,000 | 2,100,000 | ' | ' |
Common stock and restricted stock unit expense | ' | ' | ' | ' | ' | ' | 331,000 | ' | 100,000 | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage being realized up on ultimate settlement | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative annual dividends per share rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared | ' | ' | ' | ' | ' | ' | ' | ' | 27,643 | ' | 274,853 | ' | ' | ' | ' | ' | ' | ' | 27,643 | 274,853 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $96,356 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of Class B common stock to Class A common stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,030,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income (loss) - numerator | ' | ' | ' |
Net income (loss) | $45,094 | ($33,261) | ($10,309) |
Less dividends to Class B shareholders - distributed earnings | 0 | -28 | -275 |
Undistributed earnings (loss) | $45,094 | ($33,289) | ($10,584) |
Weighted average common shares outstanding - denominator | ' | ' | ' |
Weighted average common shares outstanding for basic earnings (loss) per share | 58,777,000 | 53,957,000 | 42,718,000 |
Diluted | 58,929,000 | 53,957,000 | 42,718,000 |
Class A [Member] | ' | ' | ' |
Weighted average common shares outstanding - denominator | ' | ' | ' |
Weighted average common shares outstanding for basic earnings (loss) per share | 58,777,000 | 53,852,000 | 41,687,000 |
Dilutive effect of options and restricted stock units | 152,000 | 0 | 0 |
Diluted | 58,929,000 | 53,852,000 | 41,687,000 |
Basic | ' | ' | ' |
Distributed earnings (usd per share) | $0 | $0 | $0 |
Undistributed (loss) earnings (usd per share) | $0.77 | ($0.62) | ($0.25) |
Total (usd per share) | $0.77 | ($0.62) | ($0.25) |
Diluted | ' | ' | ' |
Distributed earnings (usd per share) | $0 | $0 | $0 |
Undistributed (loss) earnings (usd per share) | $0.77 | ($0.62) | ($0.25) |
Total (usd per share) | $0.77 | ($0.62) | ($0.25) |
Class B [Member] | ' | ' | ' |
Weighted average common shares outstanding - denominator | ' | ' | ' |
Weighted average common shares outstanding for basic earnings (loss) per share | 0 | 105,000 | 1,031,000 |
Diluted | 0 | 105,000 | 1,031,000 |
Basic | ' | ' | ' |
Distributed earnings (usd per share) | $0 | $0.27 | $0.27 |
Undistributed (loss) earnings (usd per share) | $0 | ($0.62) | ($0.25) |
Total (usd per share) | $0 | ($0.35) | $0.02 |
Diluted | ' | ' | ' |
Distributed earnings (usd per share) | $0 | $0.27 | $0.27 |
Undistributed (loss) earnings (usd per share) | $0 | ($0.62) | ($0.25) |
Total (usd per share) | $0 | ($0.35) | $0.02 |
Stock options [Member] | ' | ' | ' |
Diluted | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 1,067,069 | 1,024,500 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Diluted | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 162,368 | 0 |
Restricted stock [Member] | ' | ' | ' |
Diluted | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 305,807 | 0 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Oil and natural gas properties | ' | ' |
Evaluated (subject to amortization) | $1,090,656 | $763,527 |
Unproved and unevaluated (not subject to amortization) | ' | ' |
Incurred in 2013 | 82,628 | 0 |
Incurred in 2012 | 23,341 | 36,488 |
Incurred in 2011 | 10,982 | 24,138 |
Incurred in 2010 and prior | 77,355 | 89,049 |
Total unproved and unevaluated | 194,306 | 149,675 |
Total oil and natural gas properties | 1,284,962 | 913,202 |
Accumulated depletion | -463,091 | -344,609 |
Net oil and natural gas properties | 821,871 | 568,593 |
Other property and equipment | ' | ' |
Other property and equipment | 29,910 | 27,258 |
Accumulated depreciation | -5,904 | -4,761 |
Net other property and equipment | 24,006 | 22,497 |
Net property and equipment | 845,877 | 591,090 |
Computer equipment [Member] | ' | ' |
Other property and equipment | ' | ' |
Other property and equipment | 1,044 | 834 |
Furniture [Member] | ' | ' |
Other property and equipment | ' | ' |
Other property and equipment | 1,057 | 793 |
Software [Member] | ' | ' |
Other property and equipment | ' | ' |
Other property and equipment | 1,456 | 1,355 |
Other equipment [Member] | ' | ' |
Other property and equipment | ' | ' |
Other property and equipment | 252 | 196 |
Leasehold improvements [Member] | ' | ' |
Other property and equipment | ' | ' |
Other property and equipment | 991 | 644 |
Support equipment and facilities [Member] | ' | ' |
Other property and equipment | ' | ' |
Other property and equipment | $25,110 | $23,436 |
Property_and_Equipment_Details1
Property and Equipment (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | 2013 [Member] | 2012 [Member] | 2011 [Member] | 2010 and prior [Member] | Projects Inception to Date [Member] | ||
Breakdown of the Company's unproved and unevaluated property costs not subject to amortization | ' | ' | ' | ' | ' | ' | ' |
Costs incurred for Property acquisition | ' | ' | $66,582 | $22,944 | $9,050 | $77,355 | $175,931 |
Exploration wells | 12,901 | ' | 12,901 | 247 | 1,932 | ' | 15,080 |
Amount for development wells | 3,145 | ' | 3,145 | 0 | ' | ' | 3,145 |
Capitalized interest | ' | ' | 0 | 150 | ' | ' | 150 |
Total unproved and unevaluated | $194,306 | $149,675 | $82,628 | $23,341 | $10,982 | $77,355 | $194,306 |
Property_and_Equipment_Details2
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2010 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Amortization costs | 16,000,000 | ' |
Amount for exploration wells | 12,901,000 | ' |
Amount for development wells | 3,145,000 | ' |
Anticipated amount for wells | 16,000,000 | ' |
Well costs excluded from amortization | 2,200,000 | ' |
Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Evaluation of properties and amortization Cost are expected to be completed | '10 years | '5 years |
Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Evaluation of properties and amortization Cost are expected to be completed | '5 years | '3 years |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in the Company's asset retirement obligations | ' | ' |
Beginning asset retirement obligations | $5,769 | $4,270 |
Liabilities incurred during period | 936 | 1,243 |
Liabilities settled during period | 103 | 0 |
Revisions in estimated cash flows | 534 | 0 |
Accretion expense | 348 | 256 |
Ending asset retirement obligations | 7,484 | 5,769 |
Less: current asset retirement obligations | -175 | -660 |
Long-term asset retirement obligations | $7,309 | $5,109 |
Asset_Sales_and_Impairment_Det
Asset Sales and Impairment (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' |
Carrying value of inventory | ' | ' | $0 | ' |
Remaining balance of drilling rig parts | ' | ' | 0 | ' |
Net loss incurred in South Pipeline asset | ' | ' | 60,000 | ' |
Loss incurred on equipment sold | ' | ' | ' | 113,757 |
Drilling rig [Member] | ' | ' | ' | ' |
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' |
Impairment charge for equipments held in inventory | ' | ' | 425,000 | 17,500 |
Pipe and other equipment [Member] | ' | ' | ' | ' |
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' |
Impairment charge for equipments held in inventory | $192,000 | $192,000 | $60,464 | $22,276 |
Revolving_Credit_Agreement_Det
Revolving Credit Agreement (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||||
Feb. 29, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 07, 2013 | Jun. 04, 2013 | Mar. 11, 2013 | Sep. 30, 2012 | Mar. 13, 2014 | Mar. 12, 2014 | Mar. 07, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 07, 2013 | Jun. 04, 2013 | Mar. 11, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Mar. 12, 2014 | Mar. 12, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 07, 2013 | Dec. 31, 2013 | Mar. 12, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | |
Third amended credit agreement [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | LIBOR rate [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | ||||||||
Third amended credit agreement [Member] | Third amended credit agreement [Member] | Third amended credit agreement [Member] | Third amended credit agreement [Member] | Third amended credit agreement [Member] | Third amended credit agreement [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Base rate loan [Member] | Eurodollar Loan [Member] | Subsequent Event [Member] | Base rate loan [Member] | Eurodollar Loan [Member] | |||||||||||||||||
Third amended credit agreement [Member] | |||||||||||||||||||||||||||||
Revolving Credit Agreement (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company amended and restated its senior secured revolving credit agreement | ' | ' | ' | ' | ' | ' | ' | 'September 28, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under the credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | $350,000,000 | $280,000,000 | $255,000,000 | $215,000,000 | $400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Agreement, maturity date | ' | 29-Dec-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The borrowing base under the Credit Agreement determined | ' | 'semi-annually | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conforming borrowing base | ' | ' | ' | ' | 275,000,000 | 245,000,000 | 220,000,000 | ' | ' | 310,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction of borrowing base by issuance of senior unsecured notes covenant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | 10,000,000 | ' | ' |
Debt to EBITDA ratio covenant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.25 | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease to interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured revolving credit maximum facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 385,000,000 | ' | ' | ' | ' | ' | ' | ' |
Additional borrowings for working capital requirements | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Lines of Credit | 123,000,000 | 130,000,000 | 123,000,000 | 103,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Line of Credit, Noncurrent | ' | 200,000,000 | 150,000,000 | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.03 | 0.04 | ' | ' | ' | 0.0075 | 0.0175 |
Credit facility fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | ' | ' | ' |
Repay deficit in agreement Period | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional deferred loan cost | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | 800,000 | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | 300,000 | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized Deferred Finance Costs | ' | $2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings bore interest effective rate | ' | 3.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal Funds Effective Plus Rate | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of reserves required to maintain | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current ratio | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt outstanding to EBITDA | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current deferred tax assets | ' | ' |
Property and equipment | $62 | $233 |
Unrealized loss on derivatives | 965 | 0 |
Other | 609 | 869 |
Total current deferred tax assets | 1,636 | 1,102 |
Valuation allowance on current deferred tax assets | 0 | -202 |
Total current deferred tax assets, net of valuation allowance | 1,636 | 900 |
Current deferred tax liabilities | ' | ' |
Unrealized gain on derivatives | 0 | -1,311 |
Net current deferred tax assets (liabilities) | 1,636 | -411 |
Non-current deferred tax assets | ' | ' |
Unrealized loss on derivatives | 28 | 0 |
Net operating loss carryforwards | 63,007 | 44,654 |
Alternative minimum tax carryforwards | 7,064 | 6,660 |
Total non-current deferred tax assets | 70,099 | 51,314 |
Valuation allowance on non-current deferred tax assets | -30 | -10,058 |
Total non-current deferred tax assets, net of valuation allowance | 70,069 | 41,256 |
Non-current deferred tax liabilities | ' | ' |
Unrealized gain on derivatives | 0 | -262 |
Property and equipment | -76,719 | -36,363 |
Other | -4,279 | -4,220 |
Total non-current deferred tax liabilities | -80,998 | -40,845 |
Net non-current deferred tax (liabilities) assets | ($10,929) | $411 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2011 | Jun. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Percent | ' | ' | ' | ' | ' | 17.70% | ' | ' | ' |
Income Tax Reconciliation, Change in Deferred Tax Assets Valuation Allowance | ' | ' | ' | ' | ' | $8,885,000 | ($10,260,000) | $0 | ' |
Effective Income Tax Rate Reconciliation, Change in State Deferred Tax Assets Valuation Allowance, Amount | ' | ' | ' | ' | ' | 1,345,000 | 0 | 0 | ' |
Net capitalized costs less related deferred income taxes exceeded the full-cost ceiling | 13,700,000 | ' | 23,000,000 | 21,300,000 | 2,300,000 | ' | 17,300,000 | ' | ' |
Impairment charge of net capitalized costs | 21,200,000 | 26,700,000 | 35,700,000 | 33,200,000 | 3,600,000 | 21,229,000 | 63,475,000 | 35,673,000 | ' |
Deferred income tax credit | 7,500,000 | ' | 12,700,000 | 11,900,000 | 1,300,000 | ' | 9,400,000 | ' | ' |
Increase in valuation allowance | ' | ' | ' | ' | ' | ' | 7,900,000 | ' | ' |
Valuation allowance against net deferred tax assets | 15,800,000 | 10,300,000 | ' | ' | 2,400,000 | ' | 10,300,000 | ' | 6,700,000 |
Internal Revenue Service (IRS) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' | ' | ' | 171,300,000 | ' | ' | ' |
State and Local Jurisdiction [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' | ' | ' | $3,100,000 | ' | ' | ' |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current income tax provision (benefit) | ' | ' | ' |
State income tax | $0 | $0 | ($46) |
Federal alternative minimum tax | 404 | 0 | 0 |
Net current income tax provision (benefit) | 404 | 0 | -46 |
Deferred income tax provision (benefit) | ' | ' | ' |
Federal tax expense at statutory rate | 19,177 | -11,767 | -5,319 |
Statutory depletion carryforward | 0 | 0 | 231 |
State income tax | 431 | -819 | -435 |
Nondeductible expense | 0 | -122 | 48 |
Permanent differences | 319 | 1,018 | 0 |
Federal alternative minimum tax | -404 | 0 | 0 |
Change in federal valuation allowance | -8,885 | 10,260 | 0 |
Change in state valuation allowance | -1,345 | 0 | 0 |
Net deferred income tax provision (benefit) | 9,293 | -1,430 | -5,475 |
Total income tax provision (benefit) | $9,697 | ($1,430) | ($5,521) |
Federal statutory rate | 35.00% | 34.00% | 34.00% |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan | ' | ' | ' |
Weighted average fair value of stock option awards granted during the year | 3.91 | 5.95 | ' |
2003 Stock and Incentive Plan [Member] | ' | ' | ' |
Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan | ' | ' | ' |
Stock option pricing model | 'Black Scholes Merton | 'Black Scholes Merton | 'Black Scholes Merton |
Expected option life | '2 years 5 months 9 days | '324 days | '1 year 15 days |
Risk-free interest rate | 0.69% | 0.25% | 0.37% |
Volatility | 51.51% | 54.28% | 61.41% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Estimated forfeiture rate | 0.79% | 0.70% | 1.04% |
2012 Incentive Plan [Member] | ' | ' | ' |
Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan | ' | ' | ' |
Stock option pricing model | 'Black Scholes Merton | ' | ' |
Expected option life | '3 years 11 months 16 days | '4 years 5 months 9 days | ' |
Risk-free interest rate | 0.69% | 0.71% | ' |
Volatility | 58.65% | 71.16% | ' |
Dividend yield | 0.00% | 0.00% | ' |
Estimated forfeiture rate | 6.37% | 5.46% | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2011 | |
Summarized information about stock options outstanding | ' | ' |
Number of options, Options outstanding Beginning Balance | 1,067,000 | ' |
Number of options granted | 874,000 | 0 |
Number of options, Options exercised | -5,000 | ' |
Number of options, Options forfeited | -59,000 | ' |
Number of options, Options expired | -449,000 | ' |
Number of options, Options outstanding Ending Balance | 1,428,000 | ' |
Weighted average exercise price, Options outstanding Beginning Balance | $10.19 | ' |
Weighted average exercise price, Options granted | $8.78 | ' |
Weighted average exercise price, Options exercised | $7.77 | ' |
Weighted average exercise price, Options forfeited | $9.86 | ' |
Weighted average exercise price, Options expired | $10.30 | ' |
Weighted average exercise price, Options outstanding Ending Balance | $9.32 | ' |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
$7.50 - $10.00 Range [Member] | ' |
Summarized information about outstanding and exercisable stock option | ' |
Range of exercise prices, Lower limit | $7.50 |
Range of exercise prices, Upper limit | $10 |
Shares outstanding | 938 |
Weighted average remaining contractual price | '4 years 3 months 18 days |
Weighted average exercise price | $8.33 |
Shares exercisable | 79 |
Weighted average exercise price | $8.90 |
$10.39 - $13.03 Range [Member] | ' |
Summarized information about outstanding and exercisable stock option | ' |
Range of exercise prices, Lower limit | $10.39 |
Range of exercise prices, Upper limit | $13.03 |
Shares outstanding | 451 |
Weighted average remaining contractual price | '3 years 6 months |
Weighted average exercise price | $10.56 |
Shares exercisable | 15 |
Weighted average exercise price | $11 |
$17.80 - $19.05 Range [Member] | ' |
Summarized information about outstanding and exercisable stock option | ' |
Range of exercise prices, Lower limit | $17.80 |
Range of exercise prices, Upper limit | $19.05 |
Shares outstanding | 39 |
Weighted average remaining contractual price | '4 years 10 months 21 days |
Weighted average exercise price | $18.73 |
Shares exercisable | 0 |
Weighted average exercise price | $0 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of non-vested stock options | ' | ' | ' |
Shares Forfeited | -105,126 | -21,876 | ' |
Restricted Stock Service Based [Member] | ' | ' | ' |
Summary of non-vested stock options | ' | ' | ' |
Non-vested Shares, Beginning Balance | 182,000 | ' | ' |
Shares Granted | 378,000 | 206,842 | 0 |
Shares Vested | -1,000 | ' | ' |
Shares Forfeited | -95,000 | ' | ' |
Non-vested Shares, Ending Balance | 464,000 | 182,000 | ' |
Weighted average fair value, Beginning Balance | $9.72 | ' | ' |
Weighted average fair value, Granted | $9.07 | $9.66 | ' |
Weighted average fair value, Vested | $8.43 | ' | ' |
Weighted average fair value, Forfeited | $8.57 | ' | ' |
Weighted average fair value, Ending Balance | $9.43 | $9.72 | ' |
Restricted Stock Performance Based [Member] | ' | ' | ' |
Summary of non-vested stock options | ' | ' | ' |
Non-vested Shares, Beginning Balance | 110,000 | ' | ' |
Shares Granted | 0 | ' | ' |
Shares Vested | 0 | ' | ' |
Shares Forfeited | -10,000 | ' | ' |
Non-vested Shares, Ending Balance | 100,000 | ' | ' |
Weighted average fair value, Beginning Balance | $13.24 | ' | ' |
Weighted average fair value, Granted | $0 | ' | ' |
Weighted average fair value, Vested | $0 | ' | ' |
Weighted average fair value, Forfeited | $13.24 | ' | ' |
Weighted average fair value, Ending Balance | $13.24 | ' | ' |
Restricted Stock Units Service Based [Member] | ' | ' | ' |
Summary of non-vested stock options | ' | ' | ' |
Non-vested Shares, Beginning Balance | 52,000 | ' | ' |
Shares Granted | 51,000 | 54,166 | ' |
Shares Vested | -17,000 | ' | ' |
Shares Forfeited | 0 | ' | ' |
Non-vested Shares, Ending Balance | 86,000 | 52,000 | ' |
Weighted average fair value, Beginning Balance | $10 | ' | ' |
Weighted average fair value, Granted | $11.31 | $10.04 | ' |
Weighted average fair value, Vested | $10 | ' | ' |
Weighted average fair value, Forfeited | $0 | ' | ' |
Weighted average fair value, Ending Balance | $10.79 | $10 | ' |
Restricted Stock Units Performance Based [Member] | ' | ' | ' |
Summary of non-vested stock options | ' | ' | ' |
Non-vested Shares, Beginning Balance | 110,000 | ' | ' |
Shares Granted | 0 | ' | ' |
Shares Vested | 0 | ' | ' |
Shares Forfeited | -10,000 | ' | ' |
Non-vested Shares, Ending Balance | 100,000 | ' | ' |
Weighted average fair value, Beginning Balance | $0 | ' | ' |
Weighted average fair value, Granted | $0 | ' | ' |
Weighted average fair value, Vested | $0 | ' | ' |
Weighted average fair value, Forfeited | $0 | ' | ' |
Weighted average fair value, Ending Balance | $0 | ' | ' |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Maximum shares of common stock provided | ' | 4,000,000 | ' |
Vesting period of shares | '4 years | ' | ' |
Estimated fair value of options | ' | ' | $12 |
Additional general and administration expenses | ' | ' | $1,100,000 |
Number of options granted | 874,000 | ' | 0 |
Aggregate intrinsic value | 13,300,000 | ' | ' |
Aggregate intrinsic value exercisable | 900,000 | ' | ' |
Quoted closing market price | $18.64 | ' | ' |
Weighted average contractual term | '5 years 11 months 19 days | ' | ' |
Total intrinsic value of options exercised | 36,000 | 900,000 | 200,000 |
Tax related benefits realized from the exercise of stock options | 0 | 0 | 0 |
Stock-based compensation expense | 3,897,000 | 140,000 | 2,406,000 |
Stock based long term liability | 1,200,000 | 300,000 | 300,000 |
Stock based current liability | 100,000 | 100,000 | 2,900,000 |
Liability based awards | 0 | 0 | 100,000 |
Unrecognized compensation expense related to unvested stock options | 4,100,000 | ' | ' |
Weighted average remaining requisite service period of unvested stock awards | '1 year 10 months 24 days | ' | ' |
Fair value of option shares vested | 300,000 | 300,000 | 1,000,000 |
Restricted stock or unit expenses | 1,618,000 | 758,000 | ' |
Number of options, Options forfeited | -59,000 | ' | ' |
Weighted average grant date fair value for options | $3.91 | $5.95 | ' |
Granted option share purchase price, per share | $8.78 | ' | ' |
Aggregate intrinsic value for the restricted stock and restricted stock units outstanding | 14,000,000 | ' | ' |
Tax benefits recognized for stock based compensation | 1,100,000 | 300,000 | 900,000 |
Number of employees | ' | 4 | ' |
Aggregate amount of loan, secured | ' | 200,000 | ' |
Loans granted prior to termination of loan program | ' | ' | 0 |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of shares | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of shares | '4 years | ' | ' |
Class A [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Maximum shares that may be issued pursuant to options or restricted stock grants | 3,481,569 | ' | ' |
Restricted stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of shares | '3 years | ' | ' |
Stock-based compensation expense | 100,000 | 100,000 | 200,000 |
Weighted average remaining requisite service period of unvested stock awards | '1 year 9 months 26 days | ' | ' |
Defer issuance term | '2 years | ' | ' |
Vesting Period, beginning date | 19-Mar-12 | ' | ' |
Vesting period, end date | 15-Apr-15 | ' | ' |
Additional restricted stock vesting | 116,841 | ' | ' |
Restricted stock grants | ' | 13,833 | ' |
Restricted stock or unit expenses | 1,600,000 | 700,000 | 44,000 |
Unrecognized compensation expense related to unvested restricted stock and restricted stock units | 4,600,000 | ' | ' |
Fair value of restricted stock and restricted stock units vested | 182,000 | 44,000 | 44,000 |
Restricted stock [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of shares | '1 year | '1 year | ' |
Restricted stock [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of shares | '4 years | '4 years | ' |
Restricted Stock Units Service Based [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average fair value, usd per share | $10.79 | $10 | ' |
Restricted stock grants | 17,000 | ' | ' |
Restricted stock grants | 51,000 | 54,166 | ' |
Weighted average fair value, Granted | $11.31 | $10.04 | ' |
Restricted Stock Units Performance Based [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Maximum shares of common stock provided | ' | 116,841 | ' |
Weighted average fair value, usd per share | $0 | $0 | ' |
Restricted stock grants | 0 | ' | ' |
Restricted stock grants | 0 | ' | ' |
Weighted average fair value, Granted | $0 | ' | ' |
Restricted Stock Performance Based [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average fair value, usd per share | $13.24 | $13.24 | ' |
Restricted stock grants | 0 | ' | ' |
Restricted stock grants | 0 | ' | ' |
Weighted average fair value, Granted | $0 | ' | ' |
Restricted Stock Service Based [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average fair value, usd per share | $9.43 | $9.72 | ' |
Restricted stock grants | 1,000 | ' | ' |
Restricted stock grants | 378,000 | 206,842 | 0 |
Weighted average fair value, Granted | $9.07 | $9.66 | ' |
Stock options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of shares | '3 years | ' | ' |
Maximum vesting period | '5 years | ' | ' |
Maximum vesting period | '10 years | ' | ' |
Stock-based compensation expense | $2,200,000 | ($700,000) | $2,100,000 |
Stock options [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of shares | '3 years | ' | ' |
Stock options [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of shares | '4 years | ' | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Benefit Plan (Textual) [Abstract] | ' | ' | ' |
Employees annual compensation | 3.00% | ' | ' |
Safe Harbor match | $200,000 | $200,000 | $200,000 |
Discretionary matching contributions | 300,000 | 300,000 | 200,000 |
No additional discretionary contributions | $0 | ' | ' |
Common_Stock_Details
Common Stock (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||
Sep. 10, 2013 | Mar. 07, 2012 | Feb. 07, 2012 | Feb. 02, 2012 | Sep. 30, 2013 | Apr. 30, 2013 | Feb. 29, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 29, 2012 | Jan. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Oct. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Feb. 07, 2012 | Mar. 07, 2012 | Mar. 02, 2012 | Feb. 02, 2012 | Feb. 07, 2012 | Mar. 02, 2012 | Feb. 07, 2012 | Feb. 02, 2012 | Jan. 31, 2012 | Mar. 02, 2012 | |
Class A [Member] | Class A [Member] | Class A [Member] | Class A [Member] | Class A [Member] | Class A [Member] | Class A [Member] | Class A [Member] | Class A [Member] | Class B [Member] | Class B [Member] | Class B [Member] | Class B [Member] | Matador Resources Company [Member] | Matador Resources Company [Member] | Matador Resources Company [Member] | Initial Public Offering [Member] | Initial Public Offering [Member] | Initial Public Offering [Member] | Selling shareholders [Member] | Selling shareholders [Member] | Selling shareholders [Member] | Selling shareholders [Member] | |||||||||||
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Minimum [Member] | Over-allotments [Member] | Over-allotments [Member] | Over-allotments [Member] | Over-allotments [Member] | Over-allotments [Member] | |||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative annual dividends per share rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared | ' | ' | ' | ' | ' | ' | ' | ' | $27,643 | $274,853 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $27,643 | $274,853 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt and Equity, Authorized Amount | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt and Equity, Remaining Authorized Amount | ' | ' | ' | ' | ' | ' | ' | 151,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | 9,775,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company offering shares | 1,275,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' |
Public Offering, Underwriting Discounts, Commissions, and Direct Offering Costs | 7,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | 141,700,000 | ' | ' | ' | ' | ' | ' | 149,069,000 | 146,510,000 | 592,000 | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Long-term Debt | ' | ' | ' | ' | 130,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds From Public Offering Used to Fund Working Capital | 11,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial offering price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12 | $12 | ' | ' | $12 | ' | ' |
Company's common stock began trading, date | ' | ' | ' | 1-Feb-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | ' | ' | 12,209,167 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,666,667 | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66,958,867 | 56,778,718 | ' | ' | ' | ' | 1,900,000 | ' | ' | ' | ' | ' | 11,666,667 | ' | ' | ' | ' | ' | ' | ' | 1,550,000 | ' |
Initial public offering closure date | ' | 7-Mar-12 | 7-Feb-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' |
Initial offering period | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders offering for sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' |
Option to purchase additional shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,550,000 | ' | ' | ' | ' |
Option to purchase additional shares from company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 542,500 | 542,500 | ' | ' | ' | ' | ' | ' | ' |
Option to purchase additional shares from selling shareholders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,007,500 |
Net Proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 133,600,000 | ' | ' | ' | ' | ' |
Repay in borrowings then outstanding under its Credit Agreement in full | ' | ' | ' | ' | ' | ' | 123,000,000 | 130,000,000 | 123,000,000 | 103,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of Class B common stock to Class A common stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,030,700 | ' | ' | 1,030,700 | ' | 1,031,000 | ' | ' | ' | ' | ' | -1,031,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share issued to options | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | 295,500 | ' | 296,000 | 93,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from stock options exercised for additional shares | ' | ' | ' | ' | ' | ' | ' | $0 | $2,660,000 | $837,000 | ' | ' | ' | $2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options expired unexercised or were forfeited, share price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of additional shares of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,772 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Private offering and sale of additional shares of the company's class A common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeitures of non-vested restricted stock awards | ' | ' | ' | ' | ' | ' | ' | 105,126 | 21,876 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Open costless collar contracts [Member] | Oil [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Fair Value of Asset (Liability) | ($2,200) |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 1 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 06/30/2014 |
Notional Quantity | 8,000,000 |
Price Floor | 90 |
Price Ceiling | 114 |
Fair Value of Asset (Liability) | 44 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 2 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 06/30/2014 |
Notional Quantity | 12,000,000 |
Price Floor | 90 |
Price Ceiling | 116 |
Fair Value of Asset (Liability) | 67 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 3 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 15,000,000 |
Price Floor | 85 |
Price Ceiling | 97.5 |
Fair Value of Asset (Liability) | -309 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 4 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 30,000,000 |
Price Floor | 85 |
Price Ceiling | 98 |
Fair Value of Asset (Liability) | -560 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 5 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 12,000,000 |
Price Floor | 85 |
Price Ceiling | 100 |
Fair Value of Asset (Liability) | -90 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 6 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 12,200,000 |
Price Floor | 85 |
Price Ceiling | 100 |
Fair Value of Asset (Liability) | -70 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 7 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 10,000,000 |
Price Floor | 85 |
Price Ceiling | 101 |
Fair Value of Asset (Liability) | -52 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 8 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 15,000,000 |
Price Floor | 87 |
Price Ceiling | 97 |
Fair Value of Asset (Liability) | -294 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 9 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 20,000,000 |
Price Floor | 88 |
Price Ceiling | 95.6 |
Fair Value of Asset (Liability) | -536 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 10 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 20,000,000 |
Price Floor | 90 |
Price Ceiling | 97 |
Fair Value of Asset (Liability) | -253 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 11 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 12,000,000 |
Price Floor | 90 |
Price Ceiling | 97.9 |
Fair Value of Asset (Liability) | -80 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 12 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 15,000,000 |
Price Floor | 90 |
Price Ceiling | 97.9 |
Fair Value of Asset (Liability) | -98 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 13 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 15,000,000 |
Price Floor | 90 |
Price Ceiling | 98 |
Fair Value of Asset (Liability) | -101 |
Open costless collar contracts [Member] | Oil [Member] | Oil contract 14 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 15,000,000 |
Price Floor | 90 |
Price Ceiling | 101 |
Fair Value of Asset (Liability) | 132 |
Open costless collar contracts [Member] | Natural Gas [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Fair Value of Asset (Liability) | -445 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 1 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 100,000,000 |
Price Floor | 3 |
Price Ceiling | 5.15 |
Fair Value of Asset (Liability) | -60 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 2 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 100,000,000 |
Price Floor | 3.25 |
Price Ceiling | 5.21 |
Fair Value of Asset (Liability) | -34 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 3 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 100,000,000 |
Price Floor | 3.25 |
Price Ceiling | 5.22 |
Fair Value of Asset (Liability) | -34 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 4 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 100,000,000 |
Price Floor | 3.25 |
Price Ceiling | 5.37 |
Fair Value of Asset (Liability) | -22 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 5 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 100,000,000 |
Price Floor | 3.25 |
Price Ceiling | 5.42 |
Fair Value of Asset (Liability) | -18 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 6 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 100,000,000 |
Price Floor | 3.5 |
Price Ceiling | 4.9 |
Fair Value of Asset (Liability) | -37 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 7 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 100,000,000 |
Price Floor | 3.75 |
Price Ceiling | 4.77 |
Fair Value of Asset (Liability) | 3 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 8 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2015 |
Notional Quantity | 100,000,000 |
Price Floor | 3.75 |
Price Ceiling | 4.36 |
Fair Value of Asset (Liability) | -237 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 9 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2015 |
Notional Quantity | 100,000,000 |
Price Floor | 3.75 |
Price Ceiling | 4.45 |
Fair Value of Asset (Liability) | -158 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 10 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2015 |
Notional Quantity | 100,000,000 |
Price Floor | 3.75 |
Price Ceiling | 4.6 |
Fair Value of Asset (Liability) | -24 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 11 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '04/01/2014 - 12/31/2014 |
Notional Quantity | 100,000,000 |
Price Floor | 3.75 |
Price Ceiling | 4.75 |
Fair Value of Asset (Liability) | 6 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 12 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2015 - 03/31/2015 |
Notional Quantity | 200,000,000 |
Price Floor | 4 |
Price Ceiling | 4.84 |
Fair Value of Asset (Liability) | -3 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 13 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2015 - 12/31/2015 |
Notional Quantity | 100,000,000 |
Price Floor | 3.75 |
Price Ceiling | 4.65 |
Fair Value of Asset (Liability) | -9 |
Open costless collar contracts [Member] | Natural Gas [Member] | Natural Gas contract 14 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2015 - 12/31/2015 |
Notional Quantity | 200,000,000 |
Price Floor | 3.75 |
Price Ceiling | 5.04 |
Fair Value of Asset (Liability) | 182 |
Open Swap Contract [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Fair Value of Asset (Liability) | -2,753 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Fair Value of Asset (Liability) | -108 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Propane contract 1 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 116,000,000 |
Derivative, Swap Type, Fixed Price | 0.95 |
Fair Value of Asset (Liability) | -247 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Propane contract 2 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 84,000,000 |
Derivative, Swap Type, Fixed Price | 1.1425 |
Fair Value of Asset (Liability) | 32 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Propane contract 3 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 68,000,000 |
Derivative, Swap Type, Fixed Price | 1.15 |
Fair Value of Asset (Liability) | 32 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Propane contract 4 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 116,000,000 |
Derivative, Swap Type, Fixed Price | 1.0025 |
Fair Value of Asset (Liability) | -150 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Propane contract 5 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 60,000,000 |
Derivative, Swap Type, Fixed Price | 1.015 |
Fair Value of Asset (Liability) | -69 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Propane contract 6 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2015 - 12/31/2015 |
Notional Quantity | 150,000,000 |
Derivative, Swap Type, Fixed Price | 1 |
Fair Value of Asset (Liability) | -58 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Propane contract 7 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2015 - 12/31/2015 |
Notional Quantity | 68,000,000 |
Derivative, Swap Type, Fixed Price | 1.073 |
Fair Value of Asset (Liability) | 33 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Normal Butane contract 1 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 17,500,000 |
Derivative, Swap Type, Fixed Price | 1.54 |
Fair Value of Asset (Liability) | 47 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Normal Butane contract 2 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 45,500,000 |
Derivative, Swap Type, Fixed Price | 1.55 |
Fair Value of Asset (Liability) | 122 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Isobutane contract 1 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 22,000,000 |
Derivative, Swap Type, Fixed Price | 1.64 |
Fair Value of Asset (Liability) | 78 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Isobutane contract 2 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 37,000,000 |
Derivative, Swap Type, Fixed Price | 1.64 |
Fair Value of Asset (Liability) | 140 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Natural Gasoline contract 1 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 30,000,000 |
Derivative, Swap Type, Fixed Price | 1.97 |
Fair Value of Asset (Liability) | -35 |
Open Swap Contract [Member] | Natural Gas Liquids [Member] | Natural Gasoline contract 2 [Member] | ' |
Summary of contracts for oil and natural gas | ' |
Calculation Period | '01/01/2014 - 12/31/2014 |
Notional Quantity | 41,000,000 |
Derivative, Swap Type, Fixed Price | 2 |
Fair Value of Asset (Liability) | ($33) |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Offsetting Derivative Assets [Abstract] | ' | ' |
Gross amounts of recognized assets | $7,896 | $8,455 |
Gross amounts netted in the consolidated balance sheet | -7,704 | -3,306 |
Net amounts of assets presented in the consolidated balance sheet | 192 | 5,149 |
Amounts subject to master netting arrangements presented on a gross basis | 0 | 82 |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | 10,649 | 3,976 |
Gross amounts netted in the consolidated balance sheet | -7,704 | -3,306 |
Net amounts of liabilities presented in the consolidated balance sheet | 2,945 | 670 |
Amounts subject to master netting arrangements presented on a gross basis | 0 | 82 |
Counterparty A [Member] | Current Assets [Member] | ' | ' |
Offsetting Derivative Assets [Abstract] | ' | ' |
Gross amounts of recognized assets | 1,746 | 6,445 |
Gross amounts netted in the consolidated balance sheet | -1,746 | -2,373 |
Net amounts of assets presented in the consolidated balance sheet | 0 | 4,072 |
Amounts subject to master netting arrangements presented on a gross basis | 0 | 0 |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | ' | 2,373 |
Gross amounts netted in the consolidated balance sheet | ' | -2,373 |
Net amounts of liabilities presented in the consolidated balance sheet | ' | 0 |
Amounts subject to master netting arrangements presented on a gross basis | ' | 0 |
Counterparty A [Member] | Other assets [Member] | ' | ' |
Offsetting Derivative Assets [Abstract] | ' | ' |
Gross amounts of recognized assets | 0 | 1,096 |
Gross amounts netted in the consolidated balance sheet | 0 | -370 |
Net amounts of assets presented in the consolidated balance sheet | 0 | 726 |
Amounts subject to master netting arrangements presented on a gross basis | 0 | 0 |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | ' | 370 |
Gross amounts netted in the consolidated balance sheet | ' | -370 |
Net amounts of liabilities presented in the consolidated balance sheet | ' | 0 |
Amounts subject to master netting arrangements presented on a gross basis | ' | 0 |
Counterparty A [Member] | Current liabilities [Member] | ' | ' |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | 2,550 | ' |
Gross amounts netted in the consolidated balance sheet | -1,746 | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 804 | ' |
Amounts subject to master netting arrangements presented on a gross basis | 0 | ' |
Counterparty A [Member] | Long-term liabilities [Member] | ' | ' |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | 0 | ' |
Gross amounts netted in the consolidated balance sheet | 0 | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 0 | ' |
Amounts subject to master netting arrangements presented on a gross basis | 0 | ' |
Counterparty B [Member] | Current Assets [Member] | ' | ' |
Offsetting Derivative Assets [Abstract] | ' | ' |
Gross amounts of recognized assets | 1,371 | 530 |
Gross amounts netted in the consolidated balance sheet | -1,371 | -224 |
Net amounts of assets presented in the consolidated balance sheet | 0 | 306 |
Amounts subject to master netting arrangements presented on a gross basis | 0 | 82 |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | ' | 894 |
Gross amounts netted in the consolidated balance sheet | ' | -224 |
Net amounts of liabilities presented in the consolidated balance sheet | ' | 670 |
Amounts subject to master netting arrangements presented on a gross basis | ' | 82 |
Counterparty B [Member] | Other assets [Member] | ' | ' |
Offsetting Derivative Assets [Abstract] | ' | ' |
Gross amounts of recognized assets | 841 | 384 |
Gross amounts netted in the consolidated balance sheet | -668 | -339 |
Net amounts of assets presented in the consolidated balance sheet | 173 | 45 |
Amounts subject to master netting arrangements presented on a gross basis | 0 | 0 |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | ' | 339 |
Gross amounts netted in the consolidated balance sheet | ' | -339 |
Net amounts of liabilities presented in the consolidated balance sheet | ' | 0 |
Amounts subject to master netting arrangements presented on a gross basis | ' | 0 |
Counterparty B [Member] | Current liabilities [Member] | ' | ' |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | 2,136 | ' |
Gross amounts netted in the consolidated balance sheet | -1,371 | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 765 | ' |
Amounts subject to master netting arrangements presented on a gross basis | 0 | ' |
Counterparty B [Member] | Long-term liabilities [Member] | ' | ' |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | 668 | ' |
Gross amounts netted in the consolidated balance sheet | -668 | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 0 | ' |
Amounts subject to master netting arrangements presented on a gross basis | 0 | ' |
Counterparty C [Member] | Current Assets [Member] | ' | ' |
Offsetting Derivative Assets [Abstract] | ' | ' |
Gross amounts of recognized assets | 2,886 | ' |
Gross amounts netted in the consolidated balance sheet | -2,873 | ' |
Net amounts of assets presented in the consolidated balance sheet | 13 | ' |
Amounts subject to master netting arrangements presented on a gross basis | 0 | ' |
Counterparty C [Member] | Other assets [Member] | ' | ' |
Offsetting Derivative Assets [Abstract] | ' | ' |
Gross amounts of recognized assets | 1,046 | ' |
Gross amounts netted in the consolidated balance sheet | -1,046 | ' |
Net amounts of assets presented in the consolidated balance sheet | 0 | ' |
Amounts subject to master netting arrangements presented on a gross basis | 0 | ' |
Counterparty C [Member] | Current liabilities [Member] | ' | ' |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | 3,996 | ' |
Gross amounts netted in the consolidated balance sheet | -2,873 | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 1,123 | ' |
Amounts subject to master netting arrangements presented on a gross basis | 0 | ' |
Counterparty C [Member] | Long-term liabilities [Member] | ' | ' |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | 1,299 | ' |
Gross amounts netted in the consolidated balance sheet | -1,046 | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 253 | ' |
Amounts subject to master netting arrangements presented on a gross basis | 0 | ' |
Counterparty D [Member] | Current Assets [Member] | ' | ' |
Offsetting Derivative Assets [Abstract] | ' | ' |
Gross amounts of recognized assets | 6 | ' |
Gross amounts netted in the consolidated balance sheet | 0 | ' |
Net amounts of assets presented in the consolidated balance sheet | 6 | ' |
Amounts subject to master netting arrangements presented on a gross basis | 0 | ' |
Counterparty D [Member] | Other assets [Member] | ' | ' |
Offsetting Derivative Assets [Abstract] | ' | ' |
Gross amounts of recognized assets | 0 | ' |
Gross amounts netted in the consolidated balance sheet | 0 | ' |
Net amounts of assets presented in the consolidated balance sheet | 0 | ' |
Amounts subject to master netting arrangements presented on a gross basis | 0 | ' |
Counterparty D [Member] | Current liabilities [Member] | ' | ' |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | 0 | ' |
Gross amounts netted in the consolidated balance sheet | 0 | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 0 | ' |
Amounts subject to master netting arrangements presented on a gross basis | 0 | ' |
Counterparty D [Member] | Long-term liabilities [Member] | ' | ' |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross amounts of recognized liabilities | 0 | ' |
Gross amounts netted in the consolidated balance sheet | 0 | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 0 | ' |
Amounts subject to master netting arrangements presented on a gross basis | $0 | ' |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ' | ' | ' |
Realized (loss) gain on derivatives | ($909) | $13,960 | $7,106 |
Unrealized gain (loss) on derivatives | -7,232 | -4,802 | 5,138 |
Revenues [Member] | ' | ' | ' |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ' | ' | ' |
Realized (loss) gain on derivatives | -909 | 13,960 | 7,106 |
Unrealized gain (loss) on derivatives | -7,232 | -4,802 | 5,138 |
Total | -8,141 | 9,158 | 12,244 |
Oil [Member] | Revenues [Member] | ' | ' | ' |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ' | ' | ' |
Realized (loss) gain on derivatives | -2,408 | 2,047 | 0 |
Unrealized gain (loss) on derivatives | -5,319 | 3,673 | -554 |
Natural Gas [Member] | Revenues [Member] | ' | ' | ' |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ' | ' | ' |
Realized (loss) gain on derivatives | 831 | 11,892 | 7,106 |
Unrealized gain (loss) on derivatives | -1,580 | -8,700 | 5,692 |
NGL's [Member] | Revenues [Member] | ' | ' | ' |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ' | ' | ' |
Realized (loss) gain on derivatives | 668 | 21 | 0 |
Unrealized gain (loss) on derivatives | ($333) | $225 | $0 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets (Liabilities) | ' | ' |
Certificates of deposit | $0 | $230 |
Fair value on a recurring basis [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Certificates of deposit | ' | 230 |
Total | -2,753 | 4,709 |
Fair value on a recurring basis [Member] | Natural Gas [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Oil, natural gas and NGL derivatives | 192 | 5,149 |
Fair value on a recurring basis [Member] | Oil [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Oil, natural gas and NGL derivatives | -2,945 | -670 |
Fair value on a recurring basis [Member] | Level 1 [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Certificates of deposit | ' | 0 |
Total | 0 | 0 |
Fair value on a recurring basis [Member] | Level 1 [Member] | Natural Gas [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Oil, natural gas and NGL derivatives | 0 | 0 |
Fair value on a recurring basis [Member] | Level 1 [Member] | Oil [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Oil, natural gas and NGL derivatives | 0 | 0 |
Fair value on a recurring basis [Member] | Level 2 [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Certificates of deposit | ' | 230 |
Total | -2,753 | 4,709 |
Fair value on a recurring basis [Member] | Level 2 [Member] | Natural Gas [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Oil, natural gas and NGL derivatives | 192 | 5,149 |
Fair value on a recurring basis [Member] | Level 2 [Member] | Oil [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Oil, natural gas and NGL derivatives | -2,945 | -670 |
Fair value on a recurring basis [Member] | Level 3 [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Certificates of deposit | ' | 0 |
Total | 0 | 0 |
Fair value on a recurring basis [Member] | Level 3 [Member] | Natural Gas [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Oil, natural gas and NGL derivatives | 0 | 0 |
Fair value on a recurring basis [Member] | Level 3 [Member] | Oil [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Oil, natural gas and NGL derivatives | $0 | $0 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets (Liabilities) | ' | ' |
Lease and well equipment inventory | $785 | $877 |
Fair value on a non-recurring basis [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Asset retirement obligations | -1,470 | -1,243 |
Lease and well equipment inventory | ' | 34 |
Total | -1,470 | -1,209 |
Fair value on a non-recurring basis [Member] | Level 1 [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Asset retirement obligations | 0 | 0 |
Lease and well equipment inventory | ' | 0 |
Total | 0 | 0 |
Fair value on a non-recurring basis [Member] | Level 2 [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Asset retirement obligations | 0 | 0 |
Lease and well equipment inventory | ' | 0 |
Total | 0 | 0 |
Fair value on a non-recurring basis [Member] | Level 3 [Member] | ' | ' |
Assets (Liabilities) | ' | ' |
Asset retirement obligations | -1,470 | -1,243 |
Lease and well equipment inventory | ' | 34 |
Total | ($1,470) | ($1,209) |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Additions to asset retirement obligations | ' | $1,500,000 | $1,200,000 | ' |
Drilling rig [Member] | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Impairment charge for equipments held in inventory | ' | ' | 425,000 | 17,500 |
Pipe and other equipment [Member] | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Impairment charge for equipments held in inventory | $192,000 | $192,000 | $60,464 | $22,276 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of future minimum lease payments required under the office lease agreement | ' |
2014 | $812 |
2015 | 831 |
2016 | 852 |
2017 | 872 |
2018 | 893 |
Thereafter | 3,329 |
Total | $7,589 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 1) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Summary of aggregate undiscounted minimum commitments | ' |
2014 | $4,731 |
2015 | 2,992 |
2016 | 1,800 |
2017 | 1,195 |
Total | $10,718 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 01, 2012 | 15-May-08 |
sqft | acre | ||||
acre | |||||
well | |||||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' |
Effective base rent per square foot per year | 20.28 | ' | ' | ' | ' |
Rent expense, including fees for operating expenses and consumption of electricity | $0.80 | $0.60 | $0.50 | ' | ' |
Effective date of which company entered into agreement | 1-Sep-12 | ' | ' | ' | ' |
Natural gas processing and transportation agreement | '5 years | ' | ' | ' | ' |
Minimum delivery commitment to avoid paying gas deficiency fee | 80.00% | ' | ' | ' | ' |
Transportation and processing fees under the agreement | 5.3 | 0.3 | ' | ' | ' |
Term of new contract drilling rig | '1 year | ' | ' | ' | ' |
Maximum termination outstanding obligations of contracts | 9.9 | ' | ' | ' | ' |
Minimum outstanding commitments | 5.7 | ' | ' | ' | ' |
Issue on the deep rights below the Cotton Valley formation | 1,805 | ' | ' | ' | ' |
Right to participate in working capital | 25.00% | ' | ' | ' | ' |
Company's total revenue and overriding royalty interests on the acreage range Minimum | 2.00% | ' | ' | ' | ' |
Company's total revenue and overriding royalty interests on the acreage range Maximum | 23.00% | ' | ' | ' | ' |
Loss contingency, lawsuit filing date | 'May 15, 2008 | ' | ' | ' | ' |
Royalty owner undivided interest in mineral | ' | ' | ' | ' | 16.70% |
Acres reformed by court | ' | ' | ' | 169 | ' |
Rights on remaining acres | ' | ' | ' | 1,636 | ' |
Percentage of Costs Assumed | 100.00% | ' | ' | ' | ' |
Wells in Process of Drilling | 2 | ' | ' | ' | ' |
Amount Of Remittance On Success Of Legal Disputes | $8.70 | ' | ' | ' | ' |
Lease agreements [Member] | ' | ' | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' |
Office space of headquarters | 40,071 | ' | ' | ' | ' |
Orca [Member] | ' | ' | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' |
Working Interest Percentage | 50.00% | ' | ' | ' | ' |
Working Interest Percentage, Post Well Cost Recovery | 25.00% | ' | ' | ' | ' |
Supplemental_Disclosures_Detai
Supplemental Disclosures (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of current accrued liabilities | ' | ' |
Total accrued liabilities | $63,987 | $59,179 |
Other | 3,586 | 2,410 |
Accrued evaluated and unproved and unevaluated property costs [Member] | ' | ' |
Summary of current accrued liabilities | ' | ' |
Total accrued liabilities | 52,605 | 45,592 |
Accrued support equipment and facilities costs [Member] | ' | ' |
Summary of current accrued liabilities | ' | ' |
Total accrued liabilities | 0 | 1,382 |
Accrued stock-based compensation [Member] | ' | ' |
Summary of current accrued liabilities | ' | ' |
Total accrued liabilities | 56 | 65 |
Accrued lease operating expenses [Member] | ' | ' |
Summary of current accrued liabilities | ' | ' |
Total accrued liabilities | 6,251 | 5,218 |
Accrued interest on borrowings under Credit Agreement [Member] | ' | ' |
Summary of current accrued liabilities | ' | ' |
Total accrued liabilities | 141 | 255 |
Accrued asset retirement obligations [Member] | ' | ' |
Summary of current accrued liabilities | ' | ' |
Total accrued liabilities | 175 | 660 |
Accrued partners' share of joint interest charges [Member] | ' | ' |
Summary of current accrued liabilities | ' | ' |
Total accrued liabilities | $1,173 | $3,597 |
Supplemental_Disclosures_Detai1
Supplemental Disclosures (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental disclosures of cash flow information | ' | ' | ' |
Cash paid for interest expense, net of amounts capitalized | $5,801 | $780 | $634 |
Asset retirement obligations related to mineral properties | 1,363 | 1,195 | 488 |
Asset retirement obligations related to support equipment and facilities | 3 | 49 | 12 |
Increase in liabilities for oil and natural gas properties capital expenditures | 7,548 | 24,847 | 1,864 |
Increase in liabilities for support equipment and facilities | 660 | 1,112 | 175 |
Issuance of restricted stock units for Board and advisor services | 274 | 73 | 0 |
Issuance of common stock for Board and advisor services | 57 | 71 | 230 |
(Decrease) increase in liabilities for accrued cost to issue equity | 0 | -332 | -27 |
Stock based compensation expense recognized as liability | 1,012 | -1,092 | 2,102 |
Transfer of inventory to oil and natural gas properties | $343 | $69 | $96 |
Subsidiary_Guarantors_Details
Subsidiary Guarantors (Details) | Dec. 31, 2013 |
Equity [Abstract] | ' |
Subsidiary ownership percentage | 100.00% |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Aug. 07, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 14, 2014 | Feb. 28, 2014 | Mar. 13, 2014 | Mar. 07, 2014 | Dec. 31, 2012 | Mar. 14, 2014 | Mar. 12, 2014 | Dec. 31, 2013 | Feb. 28, 2014 | Dec. 31, 2013 | Mar. 12, 2014 | |
Restricted Stock [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Third Amended Credit Agreement [Member] | |||||||||||||
Maximum [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $385,000,000 |
Reduction of borrowing base by issuance of senior unsecured notes covenant | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' |
Long-term Line of Credit, Noncurrent | 200,000,000 | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | 1,300,000 | ' | ' | ' | ' | ' | ' |
Additional deferred loan cost | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' |
Unamortized portion of the deferred loan costs | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option awards granted | 874,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 224,962 | 49,721 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price, Options granted | $8.78 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $23.40 | $19.71 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,787 | ' | ' | ' | 67,690 | ' | ' | ' | ' | ' |
Fair value of awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of restricted stock awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' |
Vesting period of shares | '4 years | ' | ' | '3 years | ' | '3 years | '1 year | '1 year | '4 years | '4 years | '4 years | '4 years | ' | ' | ' | ' | ' | ' | '3 years | '4 years | '4 years | ' |
Maximum Termination Outstanding Obligations of Contracts | 9,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum outstanding commitments | $5,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |