Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 29, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-35410 | |
Entity Registrant Name | Matador Resources Company | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 27-4662601 | |
Entity Address, Address Line One | 5400 LBJ Freeway, | |
Entity Address, Address Line Two | Suite 1500 | |
Entity Address, City or Town | Dallas, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75240 | |
City Area Code | 972 | |
Local Phone Number | 371-5200 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MTDR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 116,641,109 | |
Entity Central Index Key | 0001520006 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash | $ 15,709 | $ 64,545 |
Restricted cash | 25,097 | 19,439 |
Accounts receivable | ||
Oil and natural gas revenues | 86,333 | 68,161 |
Joint interest billings | 74,880 | 61,831 |
Other | 23,981 | 16,159 |
Derivative instruments | 15,481 | 49,929 |
Lease and well equipment inventory | 14,678 | 17,564 |
Prepaid expenses and other assets | 13,157 | 8,057 |
Total current assets | 269,316 | 305,685 |
Oil and natural gas properties, full-cost method | ||
Evaluated | 4,363,545 | 3,780,236 |
Unproved and unevaluated | 1,166,501 | 1,199,511 |
Midstream properties | 557,841 | 428,025 |
Other property and equipment | 26,754 | 22,041 |
Less accumulated depletion, depreciation and amortization | (2,554,516) | (2,306,949) |
Net property and equipment | 3,560,125 | 3,122,864 |
Other assets | ||
Derivative instruments | 4,650 | 0 |
Deferred income taxes | 0 | 20,457 |
Other assets | 102,548 | 6,512 |
Total other assets | 107,198 | 26,969 |
Total assets | 3,936,639 | 3,455,518 |
Current liabilities | ||
Accounts payable | 40,584 | 66,970 |
Accrued liabilities | 222,565 | 170,855 |
Royalties payable | 64,191 | 64,776 |
Amounts due to affiliates | 14,557 | 13,052 |
Advances from joint interest owners | 7,809 | 10,968 |
Amounts due to joint ventures | 469 | 2,373 |
Other current liabilities | 53,182 | 1,028 |
Total current liabilities | 403,357 | 330,022 |
Long-term liabilities | ||
Borrowings under Credit Agreement | 215,000 | 40,000 |
Borrowings under San Mateo Credit Facility | 260,000 | 220,000 |
Senior unsecured notes payable | 1,039,020 | 1,037,837 |
Asset retirement obligations | 33,507 | 29,736 |
Derivative instruments | 0 | 83 |
Deferred income taxes | 21,186 | 13,221 |
Other long-term liabilities | 52,151 | 4,962 |
Total long-term liabilities | 1,620,864 | 1,345,839 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock - $0.01 par value, 160,000,000 shares authorized; 116,880,345 and 116,374,503 shares issued; and 116,638,712 and 116,353,590 shares outstanding, respectively | 1,169 | 1,164 |
Additional paid-in capital | 1,970,737 | 1,924,408 |
Accumulated deficit | (172,519) | (236,277) |
Treasury stock, at cost, 241,633 and 20,913 shares, respectively | (4,080) | (415) |
Total Matador Resources Company shareholders’ equity | 1,795,307 | 1,688,880 |
Non-controlling interest in subsidiaries | 117,111 | 90,777 |
Total shareholders’ equity | 1,912,418 | 1,779,657 |
Total liabilities and shareholders’ equity | $ 3,936,639 | $ 3,455,518 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - Unaudited - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 116,880,345 | 116,374,503 |
Common stock, shares outstanding | 116,638,712 | 116,353,590 |
Treasury stock, shares | 241,633 | 20,913 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Revenues | $ 264,498 | $ 223,091 | $ 715,218 | $ 620,539 |
Lease bonus - mineral acreage | 1,711 | 0 | 1,711 | 0 |
Realized gain (loss) on derivatives | 3,346 | 5,424 | 7,781 | (1,322) |
Unrealized gain (loss) on derivatives | 9,847 | (21,337) | (29,715) | (9,492) |
Total revenues | 279,402 | 207,178 | 694,995 | 609,725 |
Expenses | ||||
Production taxes, transportation and processing | 24,762 | 20,215 | 65,969 | 58,116 |
Lease operating | 29,714 | 22,531 | 87,228 | 69,685 |
Purchased natural gas | 16,608 | 0 | 35,414 | 0 |
Depletion, depreciation and amortization | 92,498 | 70,457 | 249,497 | 192,664 |
Accretion of asset retirement obligations | 520 | 387 | 1,354 | 1,126 |
General and administrative | 20,381 | 18,444 | 58,547 | 55,739 |
Total expenses | 193,300 | 139,325 | 524,564 | 394,517 |
Operating income | 86,102 | 67,853 | 170,431 | 215,208 |
Other income (expense) | ||||
Net loss on asset sales and inventory impairment | (439) | (196) | (807) | (196) |
Interest expense | (18,175) | (10,340) | (54,172) | (26,835) |
Prepayment premium on extinguishment of debt | 0 | (31,226) | 0 | (31,226) |
Other expense | (245) | (976) | (777) | (1,275) |
Total other expense | (18,859) | (42,738) | (55,756) | (59,532) |
Income before income taxes | 67,243 | 25,115 | 114,675 | 155,676 |
Income tax provision | ||||
Deferred | 13,490 | 0 | 25,335 | 0 |
Total income tax provision | 13,490 | 0 | 25,335 | 0 |
Net income | 53,753 | 25,115 | 89,340 | 155,676 |
Net income attributable to non-controlling interest in subsidiaries | 9,800 | 7,321 | 25,582 | 18,182 |
Net income attributable to Matador Resources Company shareholders | $ 43,953 | $ 17,794 | $ 63,758 | $ 137,494 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.38 | $ 0.15 | $ 0.55 | $ 1.22 |
Diluted (in dollars per share) | $ 0.38 | $ 0.15 | $ 0.54 | $ 1.21 |
Weighted average common shares outstanding | ||||
Basic (shares) | 116,643 | 116,358 | 116,541 | 112,659 |
Diluted (shares) | 116,976 | 116,912 | 116,994 | 113,208 |
Oil and natural gas revenues | ||||
Revenues | ||||
Revenues | $ 229,377 | $ 216,282 | $ 633,706 | $ 607,255 |
Third-party midstream services revenues | ||||
Revenues | ||||
Revenues | 15,257 | 6,809 | 41,454 | 13,284 |
Expenses | ||||
Plant and other midstream services operating | 8,817 | 7,291 | 26,555 | 17,187 |
Sales of purchased natural gas | ||||
Revenues | ||||
Revenues | 19,864 | $ 0 | 40,058 | $ 0 |
Lease bonus - mineral acreage | $ 1,711 | $ 1,711 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Shareholders' Equity - Unaudited - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Accumulated deficit | Treasury Stock | Total shareholders’ equity attributable to Matador Resources Company | Non-controlling interest in subsidiaries | San Mateo | San MateoAdditional paid-in capital | San MateoTotal shareholders’ equity attributable to Matador Resources Company | San Mateo II | San Mateo IIAdditional paid-in capital | San Mateo IITotal shareholders’ equity attributable to Matador Resources Company | San Mateo IINon-controlling interest in subsidiaries |
Beginning Balance, shares at Dec. 31, 2017 | 108,514,000 | 3,000 | ||||||||||||
Beginning balance at Dec. 31, 2017 | $ 1,257,546 | $ 1,085 | $ 1,666,024 | $ (510,484) | $ (69) | $ 1,156,556 | $ 100,990 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 697,000 | |||||||||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | $ 7 | (7) | |||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 6,000 | |||||||||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | $ 1 | (1) | 0 | ||||||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 5,390 | 5,390 | 5,390 | |||||||||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 130,000 | |||||||||||||
Stock options exercised, net of options forfeited in net share settlements | (1,917) | $ 1 | (1,918) | (1,917) | ||||||||||
Restricted stock forfeited (in shares) | 82,000 | |||||||||||||
Restricted stock forfeited | (2,377) | $ (2,377) | (2,377) | |||||||||||
Contribution related to formation of property | $ 14,700 | $ 14,700 | $ 14,700 | |||||||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 29,400 | 0 | 0 | 29,400 | ||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (4,900) | (4,900) | ||||||||||||
Current period net (loss) income | 64,924 | 59,894 | 59,894 | 5,030 | ||||||||||
Ending Balance, shares at Mar. 31, 2018 | 109,347,000 | 85,000 | ||||||||||||
Ending balance at Mar. 31, 2018 | 1,362,766 | $ 1,094 | 1,684,188 | (450,590) | $ (2,446) | 1,232,246 | 130,520 | |||||||
Beginning Balance, shares at Dec. 31, 2017 | 108,514,000 | 3,000 | ||||||||||||
Beginning balance at Dec. 31, 2017 | 1,257,546 | $ 1,085 | 1,666,024 | (510,484) | $ (69) | 1,156,556 | 100,990 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Current period net (loss) income | 155,676 | |||||||||||||
Ending Balance, shares at Sep. 30, 2018 | 116,507,000 | 158,000 | ||||||||||||
Ending balance at Sep. 30, 2018 | 1,722,443 | $ 1,165 | 1,923,030 | (372,990) | $ (4,039) | 1,547,166 | 175,277 | |||||||
Beginning Balance, shares at Mar. 31, 2018 | 109,347,000 | 85,000 | ||||||||||||
Beginning balance at Mar. 31, 2018 | 1,362,766 | $ 1,094 | 1,684,188 | (450,590) | $ (2,446) | 1,232,246 | 130,520 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 20,000 | |||||||||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | $ 0 | 0 | |||||||||||
Issuance of common stock (in shares) | 7,000,000 | |||||||||||||
Issuance of common stock | 226,612 | $ 70 | 226,542 | 226,612 | ||||||||||
Cost to issue equity | (146) | (146) | (146) | |||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 70,000 | |||||||||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | $ 0 | 0 | 0 | ||||||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 5,937 | 5,937 | 5,937 | |||||||||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 24,000 | |||||||||||||
Stock options exercised, net of options forfeited in net share settlements | 301 | $ 1 | 300 | 301 | ||||||||||
Restricted stock forfeited (in shares) | 18,000 | |||||||||||||
Restricted stock forfeited | (224) | $ (224) | (224) | |||||||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 24,500 | 0 | 0 | 24,500 | ||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (5,635) | (5,635) | ||||||||||||
Current period net (loss) income | 65,637 | 59,806 | 59,806 | 5,831 | ||||||||||
Ending Balance, shares at Jun. 30, 2018 | 116,461,000 | 103,000 | ||||||||||||
Ending balance at Jun. 30, 2018 | 1,679,748 | $ 1,165 | 1,916,821 | (390,784) | $ (2,670) | 1,524,532 | 155,216 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 19,000 | |||||||||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | $ 0 | 0 | |||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 3,000 | |||||||||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | $ 0 | 0 | 0 | ||||||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 5,847 | 5,847 | 5,847 | |||||||||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 24,000 | |||||||||||||
Stock options exercised, net of options forfeited in net share settlements | 362 | $ 0 | 362 | 362 | ||||||||||
Restricted stock forfeited (in shares) | 55,000 | |||||||||||||
Restricted stock forfeited | (1,369) | $ (1,369) | (1,369) | |||||||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 19,600 | 19,600 | ||||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (6,860) | (6,860) | ||||||||||||
Current period net (loss) income | 25,115 | 17,794 | 17,794 | 7,321 | ||||||||||
Ending Balance, shares at Sep. 30, 2018 | 116,507,000 | 158,000 | ||||||||||||
Ending balance at Sep. 30, 2018 | $ 1,722,443 | $ 1,165 | 1,923,030 | (372,990) | $ (4,039) | 1,547,166 | 175,277 | |||||||
Beginning Balance, shares at Dec. 31, 2018 | 116,353,590 | 116,375,000 | 21,000 | |||||||||||
Beginning balance at Dec. 31, 2018 | $ 1,779,657 | $ 1,164 | 1,924,408 | (236,277) | $ (415) | 1,688,880 | 90,777 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 6,000 | |||||||||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | $ 0 | 0 | |||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 3,000 | |||||||||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | $ 0 | 0 | 0 | ||||||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 5,802 | 5,802 | 5,802 | |||||||||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 210,000 | |||||||||||||
Stock options exercised, net of options forfeited in net share settlements | 3,111 | $ 2 | 3,109 | 3,111 | ||||||||||
Restricted stock forfeited (in shares) | 184,000 | |||||||||||||
Restricted stock forfeited | (3,170) | $ (3,170) | (3,170) | |||||||||||
Contribution related to formation of property | $ 11,613 | $ 11,613 | $ 11,613 | $ 0 | $ (506) | $ (506) | $ 506 | |||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 12,331 | 2,040 | 2,040 | 10,291 | ||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (8,330) | (8,330) | ||||||||||||
Current period net (loss) income | (9,485) | (16,947) | (16,947) | 7,462 | ||||||||||
Ending Balance, shares at Mar. 31, 2019 | 116,594,000 | 205,000 | ||||||||||||
Ending balance at Mar. 31, 2019 | $ 1,791,529 | $ 1,166 | 1,946,466 | (253,224) | $ (3,585) | 1,690,823 | 100,706 | |||||||
Beginning Balance, shares at Dec. 31, 2018 | 116,353,590 | 116,375,000 | 21,000 | |||||||||||
Beginning balance at Dec. 31, 2018 | $ 1,779,657 | $ 1,164 | 1,924,408 | (236,277) | $ (415) | 1,688,880 | 90,777 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Current period net (loss) income | $ 89,340 | |||||||||||||
Ending Balance, shares at Sep. 30, 2019 | 116,638,712 | 116,880,000 | 242,000 | |||||||||||
Ending balance at Sep. 30, 2019 | $ 1,912,418 | $ 1,169 | 1,970,737 | (172,519) | $ (4,080) | 1,795,307 | 117,111 | |||||||
Beginning Balance, shares at Mar. 31, 2019 | 116,594,000 | 205,000 | ||||||||||||
Beginning balance at Mar. 31, 2019 | 1,791,529 | $ 1,166 | 1,946,466 | (253,224) | $ (3,585) | 1,690,823 | 100,706 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 220,000 | |||||||||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | $ 2 | (2) | |||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 42,000 | |||||||||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | $ 1 | (1) | 0 | ||||||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 5,762 | 5,762 | 5,762 | |||||||||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 10,000 | |||||||||||||
Stock options exercised, net of options forfeited in net share settlements | 189 | $ 0 | 189 | 189 | ||||||||||
Restricted stock forfeited (in shares) | 13,000 | |||||||||||||
Restricted stock forfeited | (139) | $ (139) | (139) | |||||||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 7,500 | 3,090 | 3,090 | 4,410 | ||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (9,310) | (9,310) | ||||||||||||
Current period net (loss) income | 45,072 | 36,752 | 36,752 | 8,320 | ||||||||||
Ending Balance, shares at Jun. 30, 2019 | 116,866,000 | 218,000 | ||||||||||||
Ending balance at Jun. 30, 2019 | 1,840,603 | $ 1,169 | 1,955,504 | (216,472) | $ (3,724) | 1,736,477 | 104,126 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 12,000 | |||||||||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | $ 0 | 0 | |||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 2,000 | |||||||||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | $ 0 | 0 | 0 | ||||||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 5,963 | 5,963 | 5,963 | |||||||||||
Restricted stock forfeited (in shares) | 24,000 | |||||||||||||
Restricted stock forfeited | (356) | $ (356) | (356) | |||||||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 22,500 | 9,270 | 9,270 | 13,230 | ||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (10,045) | (10,045) | ||||||||||||
Current period net (loss) income | $ 53,753 | 43,953 | 43,953 | 9,800 | ||||||||||
Ending Balance, shares at Sep. 30, 2019 | 116,638,712 | 116,880,000 | 242,000 | |||||||||||
Ending balance at Sep. 30, 2019 | $ 1,912,418 | $ 1,169 | $ 1,970,737 | $ (172,519) | $ (4,080) | $ 1,795,307 | $ 117,111 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Changes in Shareholders' Equity - Unaudited (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Contribution related to formation of San Mateo, tax | $ 3.1 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Current period net (loss) income | $ 89,340 | $ 155,676 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Unrealized loss on derivatives | 29,715 | 9,492 |
Depletion, depreciation and amortization | 249,497 | 192,664 |
Accretion of asset retirement obligations | 1,354 | 1,126 |
Stock-based compensation expense | 13,740 | 13,787 |
Prepayment premium on extinguishment of debt | 0 | 31,226 |
Deferred income tax provision | 25,335 | 0 |
Amortization of debt issuance cost | 1,814 | 851 |
Net loss on asset sales and inventory impairment | 807 | 196 |
Changes in operating assets and liabilities | ||
Accounts receivable | (37,341) | (5,654) |
Lease and well equipment inventory | 2,307 | (15,347) |
Prepaid expenses | (5,099) | (502) |
Other assets | (291) | 0 |
Accounts payable, accrued liabilities and other current liabilities | (15,540) | 20,823 |
Royalties payable | (586) | 5,665 |
Advances from joint interest owners | (3,159) | 9,565 |
Other long-term liabilities | 1,234 | (250) |
Net cash provided by operating activities | 353,127 | 419,318 |
Investing activities | ||
Oil and natural gas properties capital expenditures | (536,017) | (1,106,556) |
Midstream capital expenditures | (120,792) | (120,669) |
Expenditures for other property and equipment | (3,911) | (1,570) |
Proceeds from sale of assets | 21,671 | 8,267 |
Net cash used in investing activities | (639,049) | (1,220,528) |
Financing activities | ||
Repayments of borrowings | (10,000) | (45,000) |
Borrowings under Credit Agreement | 185,000 | 370,000 |
Borrowings under San Mateo Credit Facility | 40,000 | 0 |
Cost to amend credit facilities | (613) | 0 |
Proceeds from issuance of senior unsecured notes | 0 | 750,000 |
Cost to issue senior unsecured notes | 0 | (9,531) |
Purchase of senior unsecured notes | 0 | (605,780) |
Proceeds from issuance of common stock | 0 | 226,612 |
Cost to issue equity | 0 | (146) |
Proceeds from stock options exercised | 3,300 | 827 |
Contributions related to formation of San Mateo I | 14,700 | 14,700 |
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 42,330 | 73,500 |
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (27,685) | (17,395) |
Taxes paid related to net share settlement of stock-based compensation | (3,665) | (6,051) |
Cash paid under financing lease obligations | (623) | 0 |
Net cash provided by financing activities | 242,744 | 751,736 |
Increase in cash and restricted cash | (43,178) | (49,474) |
Cash and restricted cash at beginning of period | 83,984 | 102,482 |
Cash and restricted cash at end of period | $ 40,806 | $ 53,008 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS Matador Resources Company, a Texas corporation (“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. The Company’s current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Additionally, the Company conducts midstream operations, primarily through its midstream joint ventures, San Mateo Midstream, LLC (“San Mateo I”) and San Mateo Midstream II, LLC (“San Mateo II” and, together with San Mateo I, “San Mateo”), in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and salt water gathering services and salt water disposal services to third parties. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 1, 2019 (the “Annual Report”). The Company consolidates certain subsidiaries and joint ventures that are less than wholly-owned and are not involved in oil and natural gas exploration, including San Mateo, and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification (“ASC”), Consolidation (Topic 810) . The Company proportionately consolidates certain joint ventures that are less than wholly-owned and are involved in oil and natural gas exploration. All intercompany accounts and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of September 30, 2019 . Amounts as of December 31, 2018 are derived from the Company’s audited consolidated financial statements included in the Annual Report. Certain reclassifications have been made to the December 31, 2018 financial statement amounts in order to conform them to the September 30, 2019 presentations. 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. The Company’s interim unaudited condensed 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. 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. Change in Accounting Principles Leases. During the first quarter of 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) and the amendments provided for in ASU 2018-11, Leases (Topic 842) , which require the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that the Company chose to apply. These practical expedients relate to (i) the identification and classification of leases that commenced before the effective date, (ii) the treatment of initial direct costs for leases that commenced before the effective date, (iii) the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset and (iv) the ability to initially apply the new lease standard at the adoption date. During the first quarter of 2019, the Company also adopted ASU 2018-01, Leases (Topic 842) , which is a land easement practical expedient, and, as a result, the Company began evaluating land easements that are entered into or modified after December 31, 2018. See Note 3 for additional disclosures related to leases. The adoption of these ASUs resulted in the Company recording in the condensed consolidated balance sheet beginning January 1, 2019 certain of the Company’s compressor leases, drilling rig leases and office leases, which were previously considered operating leases and not reported on the Company’s condensed consolidated balance sheets. As such, upon adoption, the Company recorded (i) long-term right of use assets of $62.3 million , which are included in “Other assets” and “Other property and equipment,” and (ii) net right of use liabilities of $62.3 million , which are included in “Other current liabilities” and “Other long-term liabilities.” There was no cumulative-effect adjustment to the opening balance of accumulated deficit as a result of the adoption of these ASUs. Stock Compensation. During the first quarter of 2019, the Company also adopted ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which extends the scope of Topic 718 to include share-based payment transactions related to the acquisition of goods and services from nonemployees. Previously, the Company accounted for stock-based awards to special advisors and contractors under ASC 505-50 as liability instruments, and the fair value of the awards was recalculated each reporting period. Upon adoption, all such awards are now measured at fair value on the grant date and the resulting expense is recognized on a straight-line basis over the awards’ vesting periods. The transitional guidance requires entities to remeasure all unvested awards that are being accounted for under ASC 505-50 as liability instruments as of the beginning of the year in which this ASU is adopted. Adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements. Revenues The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three and nine months ended September 30, 2019 and 2018 (in thousands). Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenues from contracts with customers $ 264,498 $ 223,091 $ 715,218 $ 620,539 Lease bonus - mineral acreage 1,711 — 1,711 — Realized gain (loss) on derivatives 3,346 5,424 7,781 (1,322 ) Unrealized gain (loss) on derivatives 9,847 (21,337 ) (29,715 ) (9,492 ) Total revenues $ 279,402 $ 207,178 $ 694,995 $ 609,725 Three Months Ended Nine Months Ended 2019 2018 2019 2018 Oil revenues $ 198,302 $ 169,913 $ 541,590 $ 484,343 Natural gas revenues 31,075 46,369 92,116 122,912 Third-party midstream services revenues 15,257 6,809 41,454 13,284 Sales of purchased natural gas 19,864 — 40,058 — Total revenues from contracts with customers $ 264,498 $ 223,091 $ 715,218 $ 620,539 From time to time, the Company, as an owner of mineral interests, may enter into or extend a lease to a third-party lessee to develop the oil and natural gas attributable to certain of its mineral interests in return for a specified payment or lease bonus. In those instances, revenue is recognized in the period when the lease is signed and the Company has no further obligation to the lessee. The Company records these payments as “Lease bonus - mineral acreage” revenues on its consolidated statements of operations. Property and Equipment The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12 -month period. For both the three and nine months ended September 30, 2019 and 2018 , the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and, as a result, no impairment charge was necessary. The Company capitalized approximately $8.3 million and $8.5 million of its general and administrative costs and approximately $2.7 million and $1.7 million of its interest expense for the three months ended September 30, 2019 and 2018 , respectively. The Company capitalized approximately $25.1 million and $22.6 million of its general and administrative costs and approximately $7.0 million and $6.2 million of its interest expense for the nine months ended September 30, 2019 and 2018 , respectively. Earnings Per Common Share The Company reports basic earnings attributable to Matador shareholders per common share, which excludes the effect of potentially dilutive securities, and diluted earnings attributable to Matador shareholders per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following table sets forth the computation of diluted weighted average common shares outstanding for the three and nine months ended September 30, 2019 and 2018 (in thousands). Three Months Ended Nine Months Ended 2019 2018 2019 2018 Weighted average common shares outstanding Basic 116,643 116,358 116,541 112,659 Dilutive effect of options and restricted stock units 333 554 453 549 Diluted weighted average common shares outstanding 116,976 116,912 116,994 113,208 A total of 2.5 million and 2.7 million options to purchase shares of Matador’s common stock were excluded from the diluted weighted average common shares outstanding for the three and nine months ended September 30, 2019 , respectively, because their effects were anti-dilutive. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | The Company determines if an arrangement is a lease at inception of the contract. If an arrangement is a lease, the present value of the related lease payments is recorded as a liability and an equal amount is capitalized as a right of use asset on the Company’s interim unaudited condensed consolidated balance sheet. Right of use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company’s estimated incremental borrowing rate, determined at the lease commencement date using the Company’s average secured borrowing rate, is used to calculate present value. The weighted average estimated incremental borrowing rate used for the three months ended September 30, 2019 was 3.74% . For these purposes, the lease term includes options to extend the lease when it is reasonably certain that the Company will exercise such option. Leases with terms of 12 months or less at inception are not recorded on the interim unaudited condensed consolidated balance sheet unless there is a significant cost to terminate the lease, including the cost of removal of the leased asset. As the Company is the responsible party under these arrangements, the Company records the resulting assets and liabilities on a gross basis in its interim unaudited condensed consolidated balance sheets. The following table presents supplemental interim unaudited condensed consolidated statement of operations information related to lease expenses, on a gross basis, for the three and nine months ended September 30, 2019 (in thousands). Lease payments represent gross payments to vendors, which, for certain of our operating assets, are partially offset by amounts received from other working interest owners in our operated wells. Three Months Ended Nine Months Ended Operating leases Lease operating $ 3,298 $ 8,505 Plant and other midstream services 30 91 General and administrative 805 2,279 Total operating leases (1) 4,133 10,875 Short-term leases Lease operating 2,317 7,918 Plant and other midstream services 967 3,718 General and administrative 7 24 Total short-term leases (2)(3) 3,291 11,660 Financing leases Depreciation of assets 231 671 Interest on lease liabilities 32 96 Total financing leases 263 767 Total lease expense $ 7,687 $ 23,302 _____________________ (1) Does not include gross payments related to drilling rig leases of $6.3 million and $19.8 million for the three and nine months ended September 30, 2019 , respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the interim unaudited condensed consolidated balance sheet at September 30, 2019 . (2) These costs are related to leases that are not recorded as right of use assets or lease liabilities in the interim unaudited condensed consolidated balance sheet as they are short-term leases. (3) Does not include gross payments related to short-term drilling rig leases and other equipment rentals of $24.7 million and $61.8 million for the three and nine months ended September 30, 2019 , respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the interim unaudited condensed consolidated balance sheet at September 30, 2019 . The following table presents supplemental interim unaudited condensed consolidated balance sheet information related to leases as of September 30, 2019 (in thousands). September 30, 2019 Operating leases Other assets $ 96,258 Other current liabilities $ (51,327 ) Other long-term liabilities (50,996 ) Total operating lease liabilities $ (102,323 ) Financing leases Other property and equipment, at cost $ 2,677 Accumulated depreciation (1,095 ) Net property and equipment $ 1,582 Other current liabilities $ (1,098 ) Other long-term liabilities (481 ) Total financing lease liabilities $ (1,579 ) The following table presents supplemental interim unaudited condensed consolidated cash flow information related to lease payments for the nine months ended September 30, 2019 (in thousands). Nine Months Ended Cash paid related to lease liabilities Operating cash payments for operating leases $ 10,504 Investing cash payments for operating leases $ 19,763 Financing cash payments for financing leases $ 623 Right of use assets obtained in exchange for lease obligations entered into during the period Operating leases $ 57,637 Financing leases $ 597 The following table presents the maturities of lease liabilities at September 30, 2019 (in years). Weighted-Average Remaining Lease Term September 30, 2019 Operating leases 2.9 Financing leases 2.6 The following table presents a schedule of future minimum lease payments required under all lease agreements as of September 30, 2019 and December 31, 2018 , respectively (in thousands). September 30, 2019 Operating Leases Financing Leases 2019 $ 13,969 $ 430 2020 49,285 779 2021 25,889 510 2022 5,008 88 2023 4,167 — Thereafter 9,934 — Total lease payments 108,252 1,807 Less imputed interest (5,929 ) (228 ) Total lease obligations 102,323 1,579 Less current obligations (51,327 ) (1,098 ) Long-term lease obligations $ 50,996 $ 481 December 31, 2018 Operating Leases Financing Leases 2019 $ 39,457 $ 1,240 2020 12,009 913 2021 3,513 534 2022 3,209 455 2023 3,234 — Thereafter 7,680 — Total lease payments 69,102 3,142 Less imputed interest (4,300 ) (130 ) Total lease obligations 64,802 3,012 Less current obligations (39,457 ) (1,240 ) Long-term lease obligations $ 25,345 $ 1,772 |
Leases | The Company determines if an arrangement is a lease at inception of the contract. If an arrangement is a lease, the present value of the related lease payments is recorded as a liability and an equal amount is capitalized as a right of use asset on the Company’s interim unaudited condensed consolidated balance sheet. Right of use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company’s estimated incremental borrowing rate, determined at the lease commencement date using the Company’s average secured borrowing rate, is used to calculate present value. The weighted average estimated incremental borrowing rate used for the three months ended September 30, 2019 was 3.74% . For these purposes, the lease term includes options to extend the lease when it is reasonably certain that the Company will exercise such option. Leases with terms of 12 months or less at inception are not recorded on the interim unaudited condensed consolidated balance sheet unless there is a significant cost to terminate the lease, including the cost of removal of the leased asset. As the Company is the responsible party under these arrangements, the Company records the resulting assets and liabilities on a gross basis in its interim unaudited condensed consolidated balance sheets. The following table presents supplemental interim unaudited condensed consolidated statement of operations information related to lease expenses, on a gross basis, for the three and nine months ended September 30, 2019 (in thousands). Lease payments represent gross payments to vendors, which, for certain of our operating assets, are partially offset by amounts received from other working interest owners in our operated wells. Three Months Ended Nine Months Ended Operating leases Lease operating $ 3,298 $ 8,505 Plant and other midstream services 30 91 General and administrative 805 2,279 Total operating leases (1) 4,133 10,875 Short-term leases Lease operating 2,317 7,918 Plant and other midstream services 967 3,718 General and administrative 7 24 Total short-term leases (2)(3) 3,291 11,660 Financing leases Depreciation of assets 231 671 Interest on lease liabilities 32 96 Total financing leases 263 767 Total lease expense $ 7,687 $ 23,302 _____________________ (1) Does not include gross payments related to drilling rig leases of $6.3 million and $19.8 million for the three and nine months ended September 30, 2019 , respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the interim unaudited condensed consolidated balance sheet at September 30, 2019 . (2) These costs are related to leases that are not recorded as right of use assets or lease liabilities in the interim unaudited condensed consolidated balance sheet as they are short-term leases. (3) Does not include gross payments related to short-term drilling rig leases and other equipment rentals of $24.7 million and $61.8 million for the three and nine months ended September 30, 2019 , respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the interim unaudited condensed consolidated balance sheet at September 30, 2019 . The following table presents supplemental interim unaudited condensed consolidated balance sheet information related to leases as of September 30, 2019 (in thousands). September 30, 2019 Operating leases Other assets $ 96,258 Other current liabilities $ (51,327 ) Other long-term liabilities (50,996 ) Total operating lease liabilities $ (102,323 ) Financing leases Other property and equipment, at cost $ 2,677 Accumulated depreciation (1,095 ) Net property and equipment $ 1,582 Other current liabilities $ (1,098 ) Other long-term liabilities (481 ) Total financing lease liabilities $ (1,579 ) The following table presents supplemental interim unaudited condensed consolidated cash flow information related to lease payments for the nine months ended September 30, 2019 (in thousands). Nine Months Ended Cash paid related to lease liabilities Operating cash payments for operating leases $ 10,504 Investing cash payments for operating leases $ 19,763 Financing cash payments for financing leases $ 623 Right of use assets obtained in exchange for lease obligations entered into during the period Operating leases $ 57,637 Financing leases $ 597 The following table presents the maturities of lease liabilities at September 30, 2019 (in years). Weighted-Average Remaining Lease Term September 30, 2019 Operating leases 2.9 Financing leases 2.6 The following table presents a schedule of future minimum lease payments required under all lease agreements as of September 30, 2019 and December 31, 2018 , respectively (in thousands). September 30, 2019 Operating Leases Financing Leases 2019 $ 13,969 $ 430 2020 49,285 779 2021 25,889 510 2022 5,008 88 2023 4,167 — Thereafter 9,934 — Total lease payments 108,252 1,807 Less imputed interest (5,929 ) (228 ) Total lease obligations 102,323 1,579 Less current obligations (51,327 ) (1,098 ) Long-term lease obligations $ 50,996 $ 481 December 31, 2018 Operating Leases Financing Leases 2019 $ 39,457 $ 1,240 2020 12,009 913 2021 3,513 534 2022 3,209 455 2023 3,234 — Thereafter 7,680 — Total lease payments 69,102 3,142 Less imputed interest (4,300 ) (130 ) Total lease obligations 64,802 3,012 Less current obligations (39,457 ) (1,240 ) Long-term lease obligations $ 25,345 $ 1,772 |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | The following table summarizes the changes in the Company’s asset retirement obligations for the nine months ended September 30, 2019 (in thousands). Beginning asset retirement obligations $ 31,086 Liabilities incurred during period 2,194 Liabilities settled during period (155 ) Revisions in estimated cash flows 1,792 Divestitures during period (2,145 ) Accretion expense 1,354 Ending asset retirement obligations 34,126 Less: current asset retirement obligations (1) (619 ) Long-term asset retirement obligations $ 33,507 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at September 30, 2019 . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | At September 30, 2019 , the Company had $1.05 billion of outstanding senior notes due 2026 (the “Notes”), $215.0 million in borrowings outstanding under its revolving credit facility (the “Credit Agreement”) and approximately $13.6 million in outstanding letters of credit issued pursuant to the Credit Agreement. At October 29, 2019 , the Company had $1.05 billion of outstanding Notes, $255.0 million in borrowings outstanding under its Credit Agreement and approximately $35.0 million in outstanding letters of credit issued pursuant to the Credit Agreement. At September 30, 2019 and October 29, 2019 , San Mateo I had $260.0 million in borrowings outstanding under its revolving credit facility (the “San Mateo Credit Facility”) and approximately $16.2 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. Credit Agreements 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. The Company and the lenders may each request an unscheduled redetermination of the borrowing base once between scheduled redetermination dates. In October 2019 , the lenders completed their review of the Company’s proved oil and natural gas reserves at June 30, 2019, and, as a result, the borrowing base was affirmed at $900.0 million . The Company elected to keep the borrowing commitment at $500.0 million , and the maximum facility amount remained $1.5 billion . This October 2019 redetermination constituted the regularly scheduled November 1 redetermination. Borrowings under the Credit Agreement are limited to the lowest of the borrowing base, the maximum facility amount and the elected commitment. The Credit Agreement matures October 31, 2023. The Company believes that it was in compliance with the terms of the Credit Agreement at September 30, 2019 . San Mateo Midstream, LLC On December 19, 2018, San Mateo I entered into the $250.0 million San Mateo Credit Facility, which matures December 19, 2023. The San Mateo Credit Facility includes an accordion feature, which provides for potential increases to up to $400.0 million . The San Mateo Credit Facility is non-recourse with respect to Matador and its wholly-owned subsidiaries, as well as San Mateo II and its subsidiaries, but is guaranteed by San Mateo I’s subsidiaries and secured by substantially all of San Mateo I’s assets, including real property. In June 2019, pursuant to the accordion feature, the lender commitments under the San Mateo Credit Facility were increased to $325.0 million . In October 2019, pursuant to the accordion feature, the lender commitments under the San Mateo Credit Facility were further increased to $375.0 million . The Company believes that San Mateo I was in compliance with the terms of the San Mateo Credit Facility at September 30, 2019 . Senior Unsecured Notes In August and October 2018, the Company issued $750.0 million and $300.0 million , respectively, of Notes, which have a 5.875% coupon rate. The Notes will mature September 15, 2026, and interest is payable on the Notes semi-annually in arrears on each March 15 and September 15. The Notes are guaranteed on a senior unsecured basis by certain subsidiaries of the Company. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective tax rate for the three and nine months ended September 30, 2019 was 23% and 28% , respectively. The Company’s total income tax provision for the three and nine months ended September 30, 2019 differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income due primarily to the impact of permanent differences between book and tax income at September 30, 2019 . Due to a variety of factors, including the Company’s significant net income in 2017 and 2018, the Company’s federal valuation allowance and a portion of the Company’s state valuation allowance were reversed at December 31, 2018 as the deferred tax assets were determined to be more likely than not to be utilized. As a portion of the Company’s state net operating loss carryforwards are not expected to be utilized before expiration, a valuation allowance will continue to be recognized until the state deferred tax assets are more likely than not to be utilized. The Company’s deferred tax assets exceeded its deferred tax liabilities at September 30, 2018 due to the deferred tax assets generated by full-cost ceiling impairment charges in prior periods. The Company established a valuation allowance against most of the deferred tax assets beginning in the third quarter of 2015 and retained a full valuation allowance at September 30, 2018 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
EQUITY | EQUITY Stock-based Compensation In February 2019, the Company granted awards to certain of its employees of 428,006 service-based restricted stock units to be settled in cash, which are liability instruments, and 428,006 performance-based stock units, which are equity instruments. The performance-based stock units vest in an amount between zero and 200% of the target units granted based on the Company’s relative total shareholder return over the three -year period ending December 31, 2021, as compared to a designated peer group. The service-based restricted stock units vest ratably over three years , and the performance-based stock units are eligible to vest after completion of the three -year performance period. The fair value of these awards was approximately $16.8 million on the grant date. In April 2019, the Company granted awards to certain of its employees of 259,038 service-based restricted stock units to be settled in cash, which are liability instruments, and 205,361 shares of service-based restricted stock, which are equity instruments. Both the liability instruments and the equity instruments vest ratably over three years . The fair value of these awards was approximately $9.2 million on the grant date. In August 2019, the Company granted awards to certain of its employees of 540,250 stock options that vest ratably over three years. The fair value of these awards was approximately $3.0 million . San Mateo II On February 25, 2019, the Company announced the formation of San Mateo II, a strategic joint venture with a subsidiary of Five Point Energy LLC (“Five Point”) designed to expand the Company’s midstream operations in the Delaware Basin, specifically in Eddy County, New Mexico. San Mateo II is owned 51 % by the Company and 49% by Five Point. In addition, Five Point has committed to pay $125 million of the first $150 million of capital expenditures incurred by San Mateo II to develop facilities in the Stebbins area and surrounding leaseholds in the southern portion of the Arrowhead asset area (the “Greater Stebbins Area”) and the Stateline asset area. The Company also has the ability to earn up to $150 million in deferred performance incentives over the next five years related to the formation of San Mateo II , plus additional performance incentives for securing volumes from third-party customers. During the first quarter of 2019, the Company contributed $1.0 million of property to San Mateo II. During the three and nine months ended September 30, 2019 , the Company contributed $4.5 million and $6.0 million of cash and Five Point contributed $22.5 million and $34.0 million of cash to San Mateo II, respectively. Performance Incentives In connection with the formation of San Mateo I in 2017, the Company has the ability to earn a total of $73.5 million in performance incentives to be paid by Five Point over a five -year period. The Company earned, and Five Point paid to the Company, $14.7 million in performance incentives during each of the nine months ended September 30, 2019 and 2018, and the Company may earn up to an additional $44.1 million in performance incentives over the next three years . These performance incentives are recorded as an increase to additional paid-in capital when received. These performance incentives for the nine months ended September 30, 2019 and 2018 are also denoted as “Contributions related to formation of San Mateo I” under “Financing activities” in the Company’s interim unaudited condensed consolidated statements of cash flows and changes in shareholders’ equity. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS At September 30, 2019 , the Company had various costless collar, three-way costless collar and swap contracts open and in place to mitigate its exposure to oil and natural gas price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and price floor and ceiling and fixed price for the swaps. Each contract is set to expire at varying times during 2019 and 2020. The following is a summary of the Company’s open costless collar contracts for oil and natural gas at September 30, 2019 . Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or Weighted Average Price Ceiling ($/Bbl or Fair Value of Asset (Liability) (thousands) Oil 10/01/2019 - 12/31/2019 1,950,000 $ 50.26 $ 70.94 $ 3,242 Oil 01/01/2020 - 12/31/2020 4,860,000 $ 48.50 $ 67.44 15,657 Natural Gas 10/01/2019 - 12/31/2019 600,000 $ 2.50 $ 3.80 91 Total open costless collar contracts $ 18,990 The following is a summary of the Company’s open three-way costless collar contracts for oil and natural gas at September 30, 2019 . Open three-way costless collars consist of a long put (the floor), a short call (the ceiling) and a long call that limits losses on the upside. Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or $/MMBtu) Weighted Average Price, Short Call ($/Bbl or $/MMBtu) Weighted Average Price, Long Call ($/Bbl or $/MMBtu) Fair Value of Asset (Liability) (thousands) Oil 10/01/2019 - 12/31/2019 330,000 $ 60.00 $ 75.00 $ 78.85 $ 2,216 Natural Gas 10/01/2019 - 12/31/2019 1,200,000 $ 2.50 $ 3.00 $ 3.24 177 Total open three-way costless collar contracts $ 2,393 The following is a summary of the Company’s open basis swap contracts for oil at September 30, 2019 . Commodity Calculation Period Notional Quantity (Bbl) Fixed Price ($/Bbl) Fair Value of Asset (Liability) (thousands) Oil Basis Swaps 10/01/2019 - 12/31/2019 1,308,000 $ 0.47 $ (248 ) Oil Basis Swaps 01/01/2020 - 12/31/2020 4,494,000 $ 0.42 (864 ) Oil Basis Swaps 01/01/2021 - 12/31/2021 2,880,000 $ 0.65 (140 ) Total open swap contracts $ (1,252 ) At September 30, 2019 , the Company had an aggregate asset value for open derivative financial instruments of $20.1 million . The Company’s derivative financial instruments are subject to master netting arrangements, and the Company’s counterparties 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 interim unaudited condensed consolidated balance sheets. The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed September 30, 2019 Current assets $ 19,405 $ (3,924 ) $ 15,481 Other assets 6,365 (1,715 ) 4,650 Current liabilities (3,924 ) 3,924 — Long-term liabilities (1,715 ) 1,715 — Total $ 20,131 $ — $ 20,131 December 31, 2018 Current assets $ 53,136 $ (3,207 ) $ 49,929 Current liabilities (3,207 ) 3,207 — Long-term liabilities (83 ) — (83 ) Total $ 49,846 $ — $ 49,846 The following table summarizes the location and aggregate gain (loss) of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments. Three Months Ended Nine Months Ended Type of Instrument Location in Condensed Consolidated Statement of Operations 2019 2018 2019 2018 Derivative Instrument Oil Revenues: Realized gain (loss) on derivatives $ 2,856 $ 5,424 $ 7,387 $ (1,373 ) Natural Gas Revenues: Realized gain on derivatives 490 — 394 51 Realized gain (loss) on derivatives 3,346 5,424 7,781 (1,322 ) Oil Revenues: Unrealized gain (loss) on derivatives 10,379 (21,240 ) (29,699 ) (8,284 ) Natural Gas Revenues: Unrealized loss on derivatives (532 ) (97 ) (16 ) (1,208 ) Unrealized gain (loss) on derivatives 9,847 (21,337 ) (29,715 ) (9,492 ) Total $ 13,193 $ (15,913 ) $ (21,934 ) $ (10,814 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
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 for identical, unrestricted assets or liabilities in active markets. Level 2 Quoted prices in markets that are not active, or inputs that 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 with industry standard models that consider various inputs, including: (i) quoted forward prices for commodities, (ii) time value of money and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. 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 that reflect a company’s own market assumptions. 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. 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 September 30, 2019 and December 31, 2018 (in thousands). Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ 19,863 $ — $ 19,863 Natural gas derivatives — 268 — 268 Total $ — $ 20,131 $ — $ 20,131 Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ 49,562 $ — $ 49,562 Natural gas derivatives — 284 — 284 Total $ — $ 49,846 $ — $ 49,846 Additional disclosures related to derivative financial instruments are provided in Note 8. Other Fair Value Measurements At September 30, 2019 and December 31, 2018 , the carrying values reported on the interim unaudited condensed consolidated balance sheets for accounts receivable, prepaid expenses and other assets, accounts payable, accrued liabilities, royalties payable, amounts due to affiliates, advances from joint interest owners, amounts due to joint ventures and other current liabilities approximated their fair values due to their short-term maturities. At September 30, 2019 , the carrying value of borrowings under the Credit Agreement and the San Mateo Credit Facility approximated their fair value as both are subject to short-term floating interest rates that reflect market rates available to the Company at the time and are classified at Level 2 in the fair value hierarchy. At September 30, 2019 and December 31, 2018 , the fair value of the Notes was $1.06 billion and $0.97 billion , respectively, based on quoted market prices, which represent Level 1 inputs in the fair value hierarchy. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Processing, Transportation and Salt Water Disposal Commitments Firm Commitments From time to time, the Company enters into agreements with third parties whereby the Company commits to deliver anticipated natural gas and oil production and salt water from certain portions of its acreage for gathering, transportation, processing, fractionation, sales and, in the case of salt water, disposal. The Company paid approximately $7.0 million and $6.7 million for deliveries under these agreements during the three months ended September 30, 2019 and 2018, respectively, and $19.9 million and $15.8 million for deliveries under these agreements during the nine months ended September 30, 2019 and 2018, respectively. Certain of these agreements contain minimum volume commitments. If the Company does not meet the minimum volume commitments under these agreements, it will be required to pay certain deficiency fees. If the Company ceased operations in the areas subject to these agreements at September 30, 2019 , the total deficiencies required to be paid by the Company under these agreements would be approximately $416.1 million , in addition to the commitments described below. Future Commitments In late 2017, the Company entered into a fixed-fee natural gas liquids (“NGL”) sales agreement whereby the Company committed to deliver its NGL production at the tailgate of the Black River cryogenic natural gas processing plant in Eddy County, New Mexico (the “Black River Processing Plant”) to a certain counterparty. The Company is committed to deliver a minimum amount of NGLs to the counterparty upon construction and completion of a pipeline extension and a fractionation facility by the counterparty, which is currently expected to be completed in 2020. The Company has no rights to compel the counterparty to construct this pipeline extension or fractionation facility. If the counterparty does not construct the pipeline extension and fractionation facility, then the Company does not have any minimum volume commitments under the agreement. If the counterparty constructs the pipeline extension and fractionation facility on or prior to February 28, 2021, then the Company will have a commitment to deliver a minimum amount of NGLs for seven years following the completion of the pipeline extension and fractionation facility. If the Company does not meet its NGL volume commitment in any quarter during the seven -year commitment period, it will be required to pay a deficiency fee per gallon of NGL deficiency. Should the pipeline extension and fractionation facility be completed on or prior to February 28, 2021, the minimum contractual obligation during the seven -year period would be approximately $132.3 million . In October 2019, the Company entered into a 15 -year, fixed-fee natural gas transportation agreement whereby the Company committed to deliver a portion of the residue gas production at the tailgate of the Black River Processing Plant to transport through the counterparty’s pipeline. The agreement begins when the counterparty’s pipeline is placed in service, which is anticipated to be the third quarter of 2020. Should the pipeline be placed in service, the Company will owe the fees to transport the committed volume whether or not the committed volume is transported through the counterparty’s pipeline, and the minimum contractual obligation would be approximately $106.9 million . Delaware Basin — San Mateo In February 2017, the Company dedicated its current and future leasehold interests in the Rustler Breaks and Wolf asset areas pursuant to 15 -year, fixed-fee natural gas, oil and salt water gathering agreements and salt water disposal agreements with subsidiaries of San Mateo I. In addition, the Company dedicated its current and future leasehold interests in the Rustler Breaks asset area pursuant to a 15 -year, fixed-fee natural gas processing agreement (collectively with the gathering and salt water disposal agreements, the “Operational Agreements”). San Mateo I provides the Company with firm service under each of the Operational Agreements in exchange for certain minimum volume commitments. The minimum contractual obligation under the Operational Agreements at September 30, 2019 was approximately $161.8 million . In connection with the February 2019 formation of San Mateo II, the Company dedicated to San Mateo II acreage in the Greater Stebbins Area and the Stateline asset area pursuant to 15 -year, fixed-fee agreements for oil, natural gas and salt water gathering, natural gas processing and salt water disposal (collectively, the “San Mateo II Operational Agreements”). San Mateo II will provide the Company with firm service under each of the San Mateo II Operational Agreements in exchange for certain minimum volume commitments. The minimum contractual obligation under the San Mateo II Operational Agreements at inception was approximately $363.8 million and begins in 2020. In June 2019, a subsidiary of San Mateo II entered into an agreement with third parties for the engineering, procurement, construction and installation of an expansion of the Black River Processing Plant, including required compression. The expansion is expected to be placed in service in 2020. San Mateo II’s total commitments under this agreement are $80.3 million . San Mateo II paid approximately $9.9 million under this agreement during the three months ended September 30, 2019 . As of September 30, 2019 , the remaining obligations under this agreement were $62.1 million , which are expected to be paid within the next 12 months. Legal Proceedings The Company is a party to several legal proceedings encountered in the ordinary course of its business. While the ultimate outcome and impact on the Company cannot be predicted with certainty, in the opinion of management, it is remote that these legal proceedings will have a material adverse impact on the Company’s financial condition, results of operations or cash flows. |
Supplemental Disclosures
Supplemental Disclosures | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Disclosures [Abstract] | |
SUPPLEMENTAL DISCLOSURES | Accrued Liabilities The following table summarizes the Company’s current accrued liabilities at September 30, 2019 and December 31, 2018 (in thousands). September 30, December 31, Accrued evaluated and unproved and unevaluated property costs $ 113,904 $ 86,318 Accrued midstream property costs 32,647 16,808 Accrued lease operating expenses 23,480 12,705 Accrued interest on debt 3,107 22,448 Accrued asset retirement obligations 619 1,350 Accrued partners’ share of joint interest charges 32,769 17,037 Other 16,039 14,189 Total accrued liabilities $ 222,565 $ 170,855 Supplemental Cash Flow Information The following table provides supplemental disclosures of cash flow information for the nine months ended September 30, 2019 and 2018 (in thousands). Nine Months Ended 2019 2018 Cash paid for interest expense, net of amounts capitalized $ 58,860 $ 29,773 Increase in asset retirement obligations related to mineral properties $ 6,946 $ 1,705 Increase in asset retirement obligations related to midstream properties $ 169 $ 547 Increase in liabilities for oil and natural gas properties capital expenditures $ 26,862 $ 5,157 Increase in liabilities for midstream properties capital expenditures $ 16,661 $ 1,864 Increase in liabilities for accrued cost to issue senior notes $ — $ 510 Transfer of inventory from oil and natural gas properties $ 211 $ 305 Transfer of inventory to midstream properties $ — $ (2,691 ) The following table provides a reconciliation of cash and restricted cash recorded in the interim unaudited condensed consolidated balance sheets to cash and restricted cash as presented on the interim unaudited condensed consolidated statements of cash flows (in thousands). Nine Months Ended 2019 2018 Cash $ 15,709 $ 45,942 Restricted cash 25,097 7,066 Total cash and restricted cash $ 40,806 $ 53,008 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | The Company operates in two business segments: (i) exploration and production and (ii) midstream. The exploration and production segment is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States and is currently focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. The midstream segment conducts midstream operations in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and salt water gathering services and salt water disposal services to third parties. Substantially all of the Company’s midstream operations in the Rustler Breaks and Wolf asset areas in the Delaware Basin are conducted through San Mateo. The following tables present selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis, corporate expenses that are not allocated to a segment and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis (in thousands). On a consolidated basis, midstream services revenues consist primarily of those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues associated with Company-owned production are eliminated in consolidation. In evaluating the operating results of the exploration and production and midstream segments, the Company does not allocate certain expenses to the individual segments, including general and administrative expenses. Such expenses are reflected in the column labeled “Corporate.” Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended September 30, 2019 Oil and natural gas revenues $ 228,188 $ 1,189 $ — $ — $ 229,377 Midstream services revenues — 35,533 — (20,276 ) 15,257 Sales of purchased natural gas 3,080 16,784 — — 19,864 Lease bonus - mineral acreage 1,711 — — — 1,711 Realized gain on derivatives 3,346 — — — 3,346 Unrealized gain on derivatives 9,847 — — — 9,847 Expenses (1) 164,352 30,611 18,613 (20,276 ) 193,300 Operating income (loss) (2) $ 81,820 $ 22,895 $ (18,613 ) $ — $ 86,102 Total assets $ 3,332,910 $ 566,551 $ 37,178 $ — $ 3,936,639 Capital expenditures (3) $ 201,323 $ 66,438 $ 1,705 $ — $ 269,466 _____________________ (1) Includes depletion, depreciation and amortization expenses of $87.7 million and $4.1 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.7 million . (2) Includes $9.8 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $6.5 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $47.2 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended September 30, 2018 Oil and natural gas revenues $ 215,248 $ 1,034 $ — $ — $ 216,282 Midstream services revenues — 24,950 — (18,141 ) 6,809 Realized gain on derivatives 5,424 — — — 5,424 Unrealized loss on derivatives (21,337 ) — — — (21,337 ) Expenses (1) 128,263 10,162 19,041 (18,141 ) 139,325 Operating income (loss) (2) $ 71,072 $ 15,822 $ (19,041 ) $ — $ 67,853 Total assets $ 2,697,685 $ 391,323 $ 65,194 $ — $ 3,154,202 Capital expenditures (3) $ 716,751 $ 47,153 $ 312 $ — $ 764,216 _____________________ (1) Includes depletion, depreciation and amortization expenses of $67.2 million and $2.6 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.6 million . (2) Includes $7.3 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $554.9 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $23.1 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Nine Months Ended September 30, 2019 Oil and natural gas revenues $ 629,414 $ 4,292 $ — $ — $ 633,706 Midstream services revenues — 97,953 — (56,499 ) 41,454 Sales of purchased natural gas 3,080 36,978 — — 40,058 Lease bonus - mineral acreage 1,711 — — — 1,711 Realized gain on derivatives 7,781 — — — 7,781 Unrealized loss on derivatives (29,715 ) — — — (29,715 ) Expenses (1) 447,844 79,870 53,349 (56,499 ) 524,564 Operating income (loss) (2) $ 164,427 $ 59,353 $ (53,349 ) $ — $ 170,431 Total assets $ 3,332,910 $ 566,551 $ 37,178 $ — $ 3,936,639 Capital expenditures (3) $ 565,466 $ 137,577 $ 3,911 $ — $ 706,954 _____________________ (1) Includes depletion, depreciation and amortization expenses of $236.0 million and $11.6 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $1.9 million . (2) Includes $25.6 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $37.8 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $85.1 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Nine Months Ended September 30, 2018 Oil and natural gas revenues $ 602,737 $ 4,518 $ — $ — $ 607,255 Midstream services revenues — 60,658 — (47,374 ) 13,284 Realized loss on derivatives (1,322 ) — — — (1,322 ) Unrealized loss on derivatives (9,492 ) — — — (9,492 ) Expenses (1) 359,830 26,723 55,338 (47,374 ) 394,517 Operating income (loss) (2) $ 232,093 $ 38,453 $ (55,338 ) $ — $ 215,208 Total assets $ 2,697,685 $ 391,323 $ 65,194 $ — $ 3,154,202 Capital expenditures (3) $ 1,105,541 $ 125,770 $ 1,570 $ — $ 1,232,881 _____________________ (1) Includes depletion, depreciation and amortization expenses of $184.4 million and $6.5 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $1.8 million . (2) Includes $18.2 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $613.8 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $61.6 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. |
Subsidiary Guarantors
Subsidiary Guarantors | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
SUBSIDIARY GUARANTORS | The Notes are jointly and severally guaranteed by certain subsidiaries of Matador (the “Guarantor Subsidiaries”) on a full and unconditional basis (except for customary release provisions). At September 30, 2019 , the Guarantor Subsidiaries were 100% owned by Matador. Matador is a parent holding company and has no independent assets or operations, and there are no significant restrictions on the ability of Matador to obtain funds from the Guarantor Subsidiaries by dividend or loan. San Mateo and its subsidiaries (the “Non-Guarantor Subsidiaries”) are not guarantors of the Notes. The following tables present condensed consolidating financial information of Matador (as issuer of the Notes), the Non-Guarantor Subsidiaries, the Guarantor Subsidiaries and all entities on a consolidated basis (in thousands). Elimination entries are necessary to combine the entities. This financial information is presented in accordance with the requirements of Rule 3-10 of Regulation S-X. The following financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities. Condensed Consolidating Balance Sheet Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated ASSETS Intercompany receivable $ 1,563,060 $ 20,658 $ — $ (1,583,718 ) $ — Current assets 3,762 39,545 226,009 — 269,316 Net property and equipment — 502,082 3,058,043 — 3,560,125 Investment in subsidiaries 1,285,250 — 122,743 (1,407,993 ) — Long-term assets 3,440 1,605 111,519 (9,366 ) 107,198 Total assets $ 2,855,512 $ 563,890 $ 3,518,314 $ (3,001,077 ) $ 3,936,639 LIABILITIES AND EQUITY Intercompany payable $ — $ — $ 1,583,718 $ (1,583,718 ) $ — Current liabilities — 53,627 350,532 (802 ) 403,357 Senior unsecured notes payable 1,039,020 — — — 1,039,020 Other long-term liabilities 21,185 270,409 298,814 (8,564 ) 581,844 Total equity attributable to Matador Resources Company 1,795,307 122,743 1,285,250 (1,407,993 ) 1,795,307 Non-controlling interest in subsidiaries — 117,111 — — 117,111 Total liabilities and equity $ 2,855,512 $ 563,890 $ 3,518,314 $ (3,001,077 ) $ 3,936,639 Condensed Consolidating Balance Sheet Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated ASSETS Intercompany receivable $ 1,244,405 $ 29,816 $ — $ (1,274,221 ) $ — Current assets 4,109 34,027 267,549 — 305,685 Net property and equipment — 379,052 2,743,812 — 3,122,864 Investment in subsidiaries 1,490,401 — 95,346 (1,585,747 ) — Long-term assets 23,897 1,479 11,095 (9,502 ) 26,969 Total assets $ 2,762,812 $ 444,374 $ 3,117,802 $ (2,869,470 ) $ 3,455,518 LIABILITIES AND EQUITY Intercompany payable $ — $ — $ 1,274,221 $ (1,274,221 ) $ — Current liabilities 22,874 27,988 279,884 (724 ) 330,022 Senior unsecured notes payable 1,037,837 — — — 1,037,837 Other long-term liabilities 13,221 230,263 73,296 (8,778 ) 308,002 Total equity attributable to Matador Resources Company 1,688,880 95,346 1,490,401 (1,585,747 ) 1,688,880 Non-controlling interest in subsidiaries — 90,777 — — 90,777 Total liabilities and equity $ 2,762,812 $ 444,374 $ 3,117,802 $ (2,869,470 ) $ 3,455,518 Condensed Consolidating Statement of Operations Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 52,776 $ 246,235 $ (19,609 ) $ 279,402 Total expenses 1,034 30,317 181,558 (19,609 ) 193,300 Operating (loss) income (1,034 ) 22,459 64,677 — 86,102 Net loss on asset sales and inventory impairment — — (439 ) — (439 ) Interest expense (15,716 ) (2,459 ) — — (18,175 ) Other expense — — (245 ) — (245 ) Earnings in subsidiaries 74,193 — 10,200 (84,393 ) — Income before income taxes 57,443 20,000 74,193 (84,393 ) 67,243 Total income tax provision 13,490 — — — 13,490 Net income attributable to non-controlling interest in subsidiaries — (9,800 ) — — (9,800 ) Net income attributable to Matador Resources Company shareholders $ 43,953 $ 10,200 $ 74,193 $ (84,393 ) $ 43,953 Condensed Consolidating Statement of Operations Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 25,640 $ 199,386 $ (17,848 ) $ 207,178 Total expenses 1,184 10,708 145,281 (17,848 ) 139,325 Operating (loss) income (1,184 ) 14,932 54,105 — 67,853 Net loss on asset sales and inventory impairment — — (196 ) — (196 ) Interest expense (10,340 ) — — — (10,340 ) Other (expense) income (31,232 ) 8 (978 ) — (32,202 ) Earnings in subsidiaries 60,550 — 7,619 (68,169 ) — Income before income taxes 17,794 14,940 60,550 (68,169 ) 25,115 Net income attributable to non-controlling interest in subsidiaries — (7,321 ) — — (7,321 ) Net income attributable to Matador Resources Company shareholders $ 17,794 $ 7,619 $ 60,550 $ (68,169 ) $ 17,794 Condensed Consolidating Statement of Operations Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 137,372 $ 612,368 $ (54,745 ) $ 694,995 Total expenses 2,970 78,386 497,953 (54,745 ) 524,564 Operating (loss) income (2,970 ) 58,986 114,415 — 170,431 Net loss on asset sales and inventory impairment — — (807 ) — (807 ) Interest expense (47,391 ) (6,781 ) — — (54,172 ) Other income (expense) — 3 (780 ) — (777 ) Earnings in subsidiaries 139,454 — 26,626 (166,080 ) — Income before income taxes 89,093 52,208 139,454 (166,080 ) 114,675 Total income tax provision 25,335 — — — 25,335 Net income attributable to non-controlling interest in subsidiaries — (25,582 ) — — (25,582 ) Net income attributable to Matador Resources Company shareholders $ 63,758 $ 26,626 $ 139,454 $ (166,080 ) $ 63,758 Condensed Consolidating Statement of Operations Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 64,190 $ 592,085 $ (46,550 ) $ 609,725 Total expenses 3,596 27,102 410,369 (46,550 ) 394,517 Operating (loss) income (3,596 ) 37,088 181,716 — 215,208 Net loss on asset sales and inventory impairment — — (196 ) — (196 ) Interest expense (26,835 ) — — — (26,835 ) Other (expense) income (31,226 ) 19 (1,294 ) — (32,501 ) Earnings in subsidiaries 199,151 — 18,925 (218,076 ) — Income before income taxes 137,494 37,107 199,151 (218,076 ) 155,676 Net income attributable to non-controlling interest in subsidiaries — (18,182 ) — — (18,182 ) Net income attributable to Matador Resources Company shareholders $ 137,494 $ 18,925 $ 199,151 $ (218,076 ) $ 137,494 Condensed Consolidating Statement of Cash Flows Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Net cash (used in) provided by operating activities $ (423 ) $ 82,812 $ 270,738 $ — $ 353,127 Net cash used in investing activities — (116,967 ) (507,938 ) (14,144 ) (639,049 ) Net cash provided by financing activities — 39,888 188,712 14,144 242,744 (Decrease) increase in cash and restricted cash (423 ) 5,733 (48,488 ) — (43,178 ) Cash and restricted cash at beginning of period 456 18,841 64,687 — 83,984 Cash and restricted cash at end of period $ 33 $ 24,574 $ 16,199 $ — $ 40,806 Condensed Consolidating Statement of Cash Flows Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Net cash (used in) provided by operating activities $ (361,016 ) $ 12,318 $ 768,016 $ — $ 419,318 Net cash used in investing activities — (120,836 ) (1,152,987 ) 53,295 (1,220,528 ) Net cash provided by financing activities 361,155 109,400 334,476 (53,295 ) 751,736 Increase (decrease) in cash and restricted cash 139 882 (50,495 ) — (49,474 ) Cash and restricted cash at beginning of period 286 5,663 96,533 — 102,482 Cash and restricted cash at end of period $ 425 $ 6,545 $ 46,038 $ — $ 53,008 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates | Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 1, 2019 (the “Annual Report”). The Company consolidates certain subsidiaries and joint ventures that are less than wholly-owned and are not involved in oil and natural gas exploration, including San Mateo, and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification (“ASC”), Consolidation (Topic 810) . The Company proportionately consolidates certain joint ventures that are less than wholly-owned and are involved in oil and natural gas exploration. All intercompany accounts and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of September 30, 2019 . Amounts as of December 31, 2018 are derived from the Company’s audited consolidated financial statements included in the Annual Report. Certain reclassifications have been made to the December 31, 2018 financial statement amounts in order to conform them to the September 30, 2019 presentations. 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. The Company’s interim unaudited condensed 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. 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. |
Change in Accounting Principles and Recent Accounting Pronouncements | Change in Accounting Principles Leases. During the first quarter of 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) and the amendments provided for in ASU 2018-11, Leases (Topic 842) , which require the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that the Company chose to apply. These practical expedients relate to (i) the identification and classification of leases that commenced before the effective date, (ii) the treatment of initial direct costs for leases that commenced before the effective date, (iii) the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset and (iv) the ability to initially apply the new lease standard at the adoption date. During the first quarter of 2019, the Company also adopted ASU 2018-01, Leases (Topic 842) , which is a land easement practical expedient, and, as a result, the Company began evaluating land easements that are entered into or modified after December 31, 2018. See Note 3 for additional disclosures related to leases. The adoption of these ASUs resulted in the Company recording in the condensed consolidated balance sheet beginning January 1, 2019 certain of the Company’s compressor leases, drilling rig leases and office leases, which were previously considered operating leases and not reported on the Company’s condensed consolidated balance sheets. As such, upon adoption, the Company recorded (i) long-term right of use assets of $62.3 million , which are included in “Other assets” and “Other property and equipment,” and (ii) net right of use liabilities of $62.3 million , which are included in “Other current liabilities” and “Other long-term liabilities.” There was no cumulative-effect adjustment to the opening balance of accumulated deficit as a result of the adoption of these ASUs. Stock Compensation. During the first quarter of 2019, the Company also adopted ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which extends the scope of Topic 718 to include share-based payment transactions related to the acquisition of goods and services from nonemployees. Previously, the Company accounted for stock-based awards to special advisors and contractors under ASC 505-50 as liability instruments, and the fair value of the awards was recalculated each reporting period. Upon adoption, all such awards are now measured at fair value on the grant date and the resulting expense is recognized on a straight-line basis over the awards’ vesting periods. The transitional guidance requires entities to remeasure all unvested awards that are being accounted for under ASC 505-50 as liability instruments as of the beginning of the year in which this ASU is adopted. Adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements. Revenues The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three and nine months ended September 30, 2019 and 2018 (in thousands). |
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, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12 -month period. For both the three and nine months ended September 30, 2019 and 2018 , the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and, as a result, no impairment charge was necessary. |
Earnings (Loss) Per Common Share | Earnings Per Common Share The Company reports basic earnings attributable to Matador shareholders per common share, which excludes the effect of potentially dilutive securities, and diluted earnings attributable to Matador shareholders per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Disaggregation of revenue | The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three and nine months ended September 30, 2019 and 2018 (in thousands). Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenues from contracts with customers $ 264,498 $ 223,091 $ 715,218 $ 620,539 Lease bonus - mineral acreage 1,711 — 1,711 — Realized gain (loss) on derivatives 3,346 5,424 7,781 (1,322 ) Unrealized gain (loss) on derivatives 9,847 (21,337 ) (29,715 ) (9,492 ) Total revenues $ 279,402 $ 207,178 $ 694,995 $ 609,725 Three Months Ended Nine Months Ended 2019 2018 2019 2018 Oil revenues $ 198,302 $ 169,913 $ 541,590 $ 484,343 Natural gas revenues 31,075 46,369 92,116 122,912 Third-party midstream services revenues 15,257 6,809 41,454 13,284 Sales of purchased natural gas 19,864 — 40,058 — Total revenues from contracts with customers $ 264,498 $ 223,091 $ 715,218 $ 620,539 |
Reconciliations of basic and diluted distributed and undistributed earnings (loss) per common share | The following table sets forth the computation of diluted weighted average common shares outstanding for the three and nine months ended September 30, 2019 and 2018 (in thousands). Three Months Ended Nine Months Ended 2019 2018 2019 2018 Weighted average common shares outstanding Basic 116,643 116,358 116,541 112,659 Dilutive effect of options and restricted stock units 333 554 453 549 Diluted weighted average common shares outstanding 116,976 116,912 116,994 113,208 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following table presents supplemental interim unaudited condensed consolidated cash flow information related to lease payments for the nine months ended September 30, 2019 (in thousands). Nine Months Ended Cash paid related to lease liabilities Operating cash payments for operating leases $ 10,504 Investing cash payments for operating leases $ 19,763 Financing cash payments for financing leases $ 623 Right of use assets obtained in exchange for lease obligations entered into during the period Operating leases $ 57,637 Financing leases $ 597 The following table presents supplemental interim unaudited condensed consolidated statement of operations information related to lease expenses, on a gross basis, for the three and nine months ended September 30, 2019 (in thousands). Lease payments represent gross payments to vendors, which, for certain of our operating assets, are partially offset by amounts received from other working interest owners in our operated wells. Three Months Ended Nine Months Ended Operating leases Lease operating $ 3,298 $ 8,505 Plant and other midstream services 30 91 General and administrative 805 2,279 Total operating leases (1) 4,133 10,875 Short-term leases Lease operating 2,317 7,918 Plant and other midstream services 967 3,718 General and administrative 7 24 Total short-term leases (2)(3) 3,291 11,660 Financing leases Depreciation of assets 231 671 Interest on lease liabilities 32 96 Total financing leases 263 767 Total lease expense $ 7,687 $ 23,302 _____________________ (1) Does not include gross payments related to drilling rig leases of $6.3 million and $19.8 million for the three and nine months ended September 30, 2019 , respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the interim unaudited condensed consolidated balance sheet at September 30, 2019 . (2) These costs are related to leases that are not recorded as right of use assets or lease liabilities in the interim unaudited condensed consolidated balance sheet as they are short-term leases. (3) Does not include gross payments related to short-term drilling rig leases and other equipment rentals of $24.7 million and $61.8 million for the three and nine months ended September 30, 2019 , respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the interim unaudited condensed consolidated balance sheet at September 30, 2019 |
Assets And Liabilities, Lessee | The following table presents supplemental interim unaudited condensed consolidated balance sheet information related to leases as of September 30, 2019 (in thousands). September 30, 2019 Operating leases Other assets $ 96,258 Other current liabilities $ (51,327 ) Other long-term liabilities (50,996 ) Total operating lease liabilities $ (102,323 ) Financing leases Other property and equipment, at cost $ 2,677 Accumulated depreciation (1,095 ) Net property and equipment $ 1,582 Other current liabilities $ (1,098 ) Other long-term liabilities (481 ) Total financing lease liabilities $ (1,579 ) |
Lessee, Lease Terms | The following table presents the maturities of lease liabilities at September 30, 2019 (in years). Weighted-Average Remaining Lease Term September 30, 2019 Operating leases 2.9 Financing leases 2.6 |
Finance Lease, Liability, Maturity | The following table presents a schedule of future minimum lease payments required under all lease agreements as of September 30, 2019 and December 31, 2018 , respectively (in thousands). September 30, 2019 Operating Leases Financing Leases 2019 $ 13,969 $ 430 2020 49,285 779 2021 25,889 510 2022 5,008 88 2023 4,167 — Thereafter 9,934 — Total lease payments 108,252 1,807 Less imputed interest (5,929 ) (228 ) Total lease obligations 102,323 1,579 Less current obligations (51,327 ) (1,098 ) Long-term lease obligations $ 50,996 $ 481 |
Lessee, Operating Lease, Liability, Maturity | The following table presents a schedule of future minimum lease payments required under all lease agreements as of September 30, 2019 and December 31, 2018 , respectively (in thousands). September 30, 2019 Operating Leases Financing Leases 2019 $ 13,969 $ 430 2020 49,285 779 2021 25,889 510 2022 5,008 88 2023 4,167 — Thereafter 9,934 — Total lease payments 108,252 1,807 Less imputed interest (5,929 ) (228 ) Total lease obligations 102,323 1,579 Less current obligations (51,327 ) (1,098 ) Long-term lease obligations $ 50,996 $ 481 |
Schedule of Future Minimum Rental Payments for Operating Leases | December 31, 2018 Operating Leases Financing Leases 2019 $ 39,457 $ 1,240 2020 12,009 913 2021 3,513 534 2022 3,209 455 2023 3,234 — Thereafter 7,680 — Total lease payments 69,102 3,142 Less imputed interest (4,300 ) (130 ) Total lease obligations 64,802 3,012 Less current obligations (39,457 ) (1,240 ) Long-term lease obligations $ 25,345 $ 1,772 |
Schedule of Future Minimum Lease Payments for Capital Leases | December 31, 2018 Operating Leases Financing Leases 2019 $ 39,457 $ 1,240 2020 12,009 913 2021 3,513 534 2022 3,209 455 2023 3,234 — Thereafter 7,680 — Total lease payments 69,102 3,142 Less imputed interest (4,300 ) (130 ) Total lease obligations 64,802 3,012 Less current obligations (39,457 ) (1,240 ) Long-term lease obligations $ 25,345 $ 1,772 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 nine months ended September 30, 2019 (in thousands). Beginning asset retirement obligations $ 31,086 Liabilities incurred during period 2,194 Liabilities settled during period (155 ) Revisions in estimated cash flows 1,792 Divestitures during period (2,145 ) Accretion expense 1,354 Ending asset retirement obligations 34,126 Less: current asset retirement obligations (1) (619 ) Long-term asset retirement obligations $ 33,507 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at September 30, 2019 . |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Open Option Contracts Written [Line Items] | |
Summary of gross asset balances of derivative instruments | The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed September 30, 2019 Current assets $ 19,405 $ (3,924 ) $ 15,481 Other assets 6,365 (1,715 ) 4,650 Current liabilities (3,924 ) 3,924 — Long-term liabilities (1,715 ) 1,715 — Total $ 20,131 $ — $ 20,131 December 31, 2018 Current assets $ 53,136 $ (3,207 ) $ 49,929 Current liabilities (3,207 ) 3,207 — Long-term liabilities (83 ) — (83 ) Total $ 49,846 $ — $ 49,846 |
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 gain (loss) of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments. Three Months Ended Nine Months Ended Type of Instrument Location in Condensed Consolidated Statement of Operations 2019 2018 2019 2018 Derivative Instrument Oil Revenues: Realized gain (loss) on derivatives $ 2,856 $ 5,424 $ 7,387 $ (1,373 ) Natural Gas Revenues: Realized gain on derivatives 490 — 394 51 Realized gain (loss) on derivatives 3,346 5,424 7,781 (1,322 ) Oil Revenues: Unrealized gain (loss) on derivatives 10,379 (21,240 ) (29,699 ) (8,284 ) Natural Gas Revenues: Unrealized loss on derivatives (532 ) (97 ) (16 ) (1,208 ) Unrealized gain (loss) on derivatives 9,847 (21,337 ) (29,715 ) (9,492 ) Total $ 13,193 $ (15,913 ) $ (21,934 ) $ (10,814 ) |
Open costless collar contracts | |
Open Option Contracts Written [Line Items] | |
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 at September 30, 2019 . Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or Weighted Average Price Ceiling ($/Bbl or Fair Value of Asset (Liability) (thousands) Oil 10/01/2019 - 12/31/2019 1,950,000 $ 50.26 $ 70.94 $ 3,242 Oil 01/01/2020 - 12/31/2020 4,860,000 $ 48.50 $ 67.44 15,657 Natural Gas 10/01/2019 - 12/31/2019 600,000 $ 2.50 $ 3.80 91 Total open costless collar contracts $ 18,990 The following is a summary of the Company’s open three-way costless collar contracts for oil and natural gas at September 30, 2019 . Open three-way costless collars consist of a long put (the floor), a short call (the ceiling) and a long call that limits losses on the upside. Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or $/MMBtu) Weighted Average Price, Short Call ($/Bbl or $/MMBtu) Weighted Average Price, Long Call ($/Bbl or $/MMBtu) Fair Value of Asset (Liability) (thousands) Oil 10/01/2019 - 12/31/2019 330,000 $ 60.00 $ 75.00 $ 78.85 $ 2,216 Natural Gas 10/01/2019 - 12/31/2019 1,200,000 $ 2.50 $ 3.00 $ 3.24 177 Total open three-way costless collar contracts $ 2,393 The following is a summary of the Company’s open basis swap contracts for oil at September 30, 2019 . Commodity Calculation Period Notional Quantity (Bbl) Fixed Price ($/Bbl) Fair Value of Asset (Liability) (thousands) Oil Basis Swaps 10/01/2019 - 12/31/2019 1,308,000 $ 0.47 $ (248 ) Oil Basis Swaps 01/01/2020 - 12/31/2020 4,494,000 $ 0.42 (864 ) Oil Basis Swaps 01/01/2021 - 12/31/2021 2,880,000 $ 0.65 (140 ) Total open swap contracts $ (1,252 ) At September 30, 2019 , the Company had an aggregate asset value for open derivative financial instruments of $20.1 million . The Company’s derivative financial instruments are subject to master netting arrangements, and the Company’s counterparties 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 interim unaudited condensed consolidated balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 | Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ 19,863 $ — $ 19,863 Natural gas derivatives — 268 — 268 Total $ — $ 20,131 $ — $ 20,131 Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ 49,562 $ — $ 49,562 Natural gas derivatives — 284 — 284 Total $ — $ 49,846 $ — $ 49,846 |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Disclosures [Abstract] | |
Summary of current accrued liabilities | The following table summarizes the Company’s current accrued liabilities at September 30, 2019 and December 31, 2018 (in thousands). September 30, December 31, Accrued evaluated and unproved and unevaluated property costs $ 113,904 $ 86,318 Accrued midstream property costs 32,647 16,808 Accrued lease operating expenses 23,480 12,705 Accrued interest on debt 3,107 22,448 Accrued asset retirement obligations 619 1,350 Accrued partners’ share of joint interest charges 32,769 17,037 Other 16,039 14,189 Total accrued liabilities $ 222,565 $ 170,855 |
Supplemental disclosures of cash flow information | The following table provides supplemental disclosures of cash flow information for the nine months ended September 30, 2019 and 2018 (in thousands). Nine Months Ended 2019 2018 Cash paid for interest expense, net of amounts capitalized $ 58,860 $ 29,773 Increase in asset retirement obligations related to mineral properties $ 6,946 $ 1,705 Increase in asset retirement obligations related to midstream properties $ 169 $ 547 Increase in liabilities for oil and natural gas properties capital expenditures $ 26,862 $ 5,157 Increase in liabilities for midstream properties capital expenditures $ 16,661 $ 1,864 Increase in liabilities for accrued cost to issue senior notes $ — $ 510 Transfer of inventory from oil and natural gas properties $ 211 $ 305 Transfer of inventory to midstream properties $ — $ (2,691 ) The following table provides a reconciliation of cash and restricted cash recorded in the interim unaudited condensed consolidated balance sheets to cash and restricted cash as presented on the interim unaudited condensed consolidated statements of cash flows (in thousands). Nine Months Ended 2019 2018 Cash $ 15,709 $ 45,942 Restricted cash 25,097 7,066 Total cash and restricted cash $ 40,806 $ 53,008 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Selected financial information for segments | The following tables present selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis, corporate expenses that are not allocated to a segment and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis (in thousands). On a consolidated basis, midstream services revenues consist primarily of those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues associated with Company-owned production are eliminated in consolidation. In evaluating the operating results of the exploration and production and midstream segments, the Company does not allocate certain expenses to the individual segments, including general and administrative expenses. Such expenses are reflected in the column labeled “Corporate.” Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended September 30, 2019 Oil and natural gas revenues $ 228,188 $ 1,189 $ — $ — $ 229,377 Midstream services revenues — 35,533 — (20,276 ) 15,257 Sales of purchased natural gas 3,080 16,784 — — 19,864 Lease bonus - mineral acreage 1,711 — — — 1,711 Realized gain on derivatives 3,346 — — — 3,346 Unrealized gain on derivatives 9,847 — — — 9,847 Expenses (1) 164,352 30,611 18,613 (20,276 ) 193,300 Operating income (loss) (2) $ 81,820 $ 22,895 $ (18,613 ) $ — $ 86,102 Total assets $ 3,332,910 $ 566,551 $ 37,178 $ — $ 3,936,639 Capital expenditures (3) $ 201,323 $ 66,438 $ 1,705 $ — $ 269,466 _____________________ (1) Includes depletion, depreciation and amortization expenses of $87.7 million and $4.1 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.7 million . (2) Includes $9.8 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $6.5 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $47.2 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended September 30, 2018 Oil and natural gas revenues $ 215,248 $ 1,034 $ — $ — $ 216,282 Midstream services revenues — 24,950 — (18,141 ) 6,809 Realized gain on derivatives 5,424 — — — 5,424 Unrealized loss on derivatives (21,337 ) — — — (21,337 ) Expenses (1) 128,263 10,162 19,041 (18,141 ) 139,325 Operating income (loss) (2) $ 71,072 $ 15,822 $ (19,041 ) $ — $ 67,853 Total assets $ 2,697,685 $ 391,323 $ 65,194 $ — $ 3,154,202 Capital expenditures (3) $ 716,751 $ 47,153 $ 312 $ — $ 764,216 _____________________ (1) Includes depletion, depreciation and amortization expenses of $67.2 million and $2.6 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.6 million . (2) Includes $7.3 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $554.9 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $23.1 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 264,498 | $ 223,091 | $ 715,218 | $ 620,539 |
Lease bonus - mineral acreage | 1,711 | 0 | 1,711 | 0 |
Realized gain (loss) on derivatives | 3,346 | 5,424 | 7,781 | (1,322) |
Unrealized gain (loss) on derivatives | 9,847 | (21,337) | (29,715) | (9,492) |
Total revenue | 279,402 | 207,178 | 694,995 | 609,725 |
Oil revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 198,302 | 169,913 | 541,590 | 484,343 |
Natural gas revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 31,075 | 46,369 | 92,116 | 122,912 |
Third-party midstream services revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 15,257 | 6,809 | 41,454 | 13,284 |
Sales of purchased natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 19,864 | 0 | 40,058 | 0 |
Lease bonus - mineral acreage | 1,711 | 1,711 | ||
Total revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 264,498 | $ 223,091 | $ 715,218 | $ 620,539 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other assets | $ 96,258,000 | $ 96,258,000 | ||
Operating lease liability | 102,323,000 | $ 102,323,000 | ||
Discount rate, present value of future revenue | 10.00% | |||
Impairment charges | $ 0 | |||
Capitalized general and administrative costs | 8,300,000 | 8,500,000 | $ 25,100,000 | $ 22,600,000 |
Interest costs capitalized | $ 2,700,000 | $ 1,700,000 | $ 7,000,000 | $ 6,200,000 |
Restricted Stock | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Antidilutive securities (in shares) | 2.5 | 2.7 | ||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other assets | $ 62,300,000 | $ 62,300,000 | ||
Operating lease liability | $ 62,300,000 | $ 62,300,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||||
Weighted average common shares outstanding for basic earnings (loss) per share | 116,643 | 116,358 | 116,541 | 112,659 |
Dilutive effect of options and restricted stock units | 333 | 554 | 453 | 549 |
Diluted weighted average common shares outstanding | 116,976 | 116,912 | 116,994 | 113,208 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Incremental borrowing rate | 3.74% |
Other assets | $ 96,258 |
Total lease obligations | $ 102,323 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating leases | $ 4,133 | $ 10,875 |
Short-term leases | 3,291 | 11,660 |
Financing leases | ||
Depreciation of assets | 231 | 671 |
Interest on lease liabilities | 32 | 96 |
Total financing leases | 263 | 767 |
Total lease expense | 7,687 | 23,302 |
Lease operating | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases | 3,298 | 8,505 |
Short-term leases | 2,317 | 7,918 |
Plant and other midstream services | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases | 30 | 91 |
Short-term leases | 967 | 3,718 |
General and administrative | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases | 805 | 2,279 |
Short-term leases | 7 | 24 |
Drilling Rig Leases | ||
Financing leases | ||
Gross payments | 6,300 | 19,800 |
Drilling Rig Leases And Other Equipment Rentals | ||
Financing leases | ||
Gross payments | $ 24,700 | $ 61,800 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Operating leases | |
Other assets | $ 96,258 |
Other current liabilities | (51,327) |
Other long-term liabilities | (50,996) |
Total operating lease liabilities | (102,323) |
Financing leases | |
Other property and equipment, at cost | 2,677 |
Accumulated depreciation | (1,095) |
Net property and equipment | 1,582 |
Other current liabilities | (1,098) |
Other long-term liabilities | (481) |
Total financing lease liabilities | $ (1,579) |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash paid related to lease liabilities | ||
Operating cash payments for operating leases | $ 10,504 | |
Investing cash payments for operating leases | 19,763 | |
Financing cash payments for financing leases | 623 | $ 0 |
Right of use assets obtained in exchange for lease obligations entered into during the period | ||
Operating leases | 57,637 | |
Financing leases | $ 597 |
Leases - Lease Terms (Details)
Leases - Lease Terms (Details) | Sep. 30, 2019 |
Weighted-Average Remaining Lease Term | |
Operating leases | 2 years 10 months 24 days |
Financing leases | 2 years 7 months 6 days |
Leases - Lease Payment Maturity
Leases - Lease Payment Maturity Schedule (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Leases | |
2019 | $ 13,969 |
2020 | 49,285 |
2021 | 25,889 |
2022 | 5,008 |
2023 | 4,167 |
Thereafter | 9,934 |
Total lease payments | 108,252 |
Less imputed interest | (5,929) |
Total lease obligations | 102,323 |
Less current obligations | (51,327) |
Long-term lease obligations | 50,996 |
Financing Leases | |
2019 | 430 |
2020 | 779 |
2021 | 510 |
2022 | 88 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 1,807 |
Less imputed interest | (228) |
Total lease obligations | 1,579 |
Less current obligations | (1,098) |
Long-term lease obligations | $ 481 |
Leases - Disclosure Under Topic
Leases - Disclosure Under Topic 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases | |
2019 | $ 39,457 |
2020 | 12,009 |
2021 | 3,513 |
2022 | 3,209 |
2023 | 3,234 |
Thereafter | 7,680 |
Total lease payments | 69,102 |
Less imputed interest | (4,300) |
Total lease obligations | 64,802 |
Less current obligations | (39,457) |
Long-term lease obligations | 25,345 |
Financing Leases | |
2019 | 1,240 |
2020 | 913 |
2021 | 534 |
2022 | 455 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 3,142 |
Less imputed interest | (130) |
Total lease obligations | 3,012 |
Less current obligations | (1,240) |
Long-term lease obligations | $ 1,772 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||
Changes in the Company's asset retirement obligations | ||||||
Beginning asset retirement obligations | $ 31,086 | |||||
Liabilities incurred during period | 2,194 | |||||
Liabilities settled during period | (155) | |||||
Revisions in estimated cash flows | 1,792 | |||||
Divestitures during period | (2,145) | |||||
Accretion expense | $ 520 | $ 387 | 1,354 | $ 1,126 | ||
Ending asset retirement obligations | 34,126 | 34,126 | ||||
Less: current asset retirement obligations | [1] | (619) | (619) | |||
Long-term asset retirement obligations | $ 33,507 | $ 33,507 | $ 29,736 | |||
[1] | Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at September 30, 2019 . |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Oct. 29, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Revolving Credit Agreement [Line Items] | |||
Line of credit facility | $ 215,000 | $ 40,000 | |
Borrowings under San Mateo Credit Facility | 260,000 | $ 220,000 | |
Senior Notes | Senior Notes Due 2026 | |||
Revolving Credit Agreement [Line Items] | |||
Long-term debt outstanding | 1,050,000 | ||
Letter of Credit | |||
Revolving Credit Agreement [Line Items] | |||
Outstanding letters of credit | 13,600 | ||
Line of Credit | San Mateo Credit Facility | |||
Revolving Credit Agreement [Line Items] | |||
Outstanding letters of credit | 16,200 | ||
Borrowings under San Mateo Credit Facility | $ 260,000 | ||
Subsequent Event | |||
Revolving Credit Agreement [Line Items] | |||
Line of credit facility | $ 255,000 | ||
Subsequent Event | Senior Notes | Senior Notes Due 2026 | |||
Revolving Credit Agreement [Line Items] | |||
Long-term debt outstanding | 1,050,000 | ||
Subsequent Event | Letter of Credit | |||
Revolving Credit Agreement [Line Items] | |||
Outstanding letters of credit | 35,000 | ||
Subsequent Event | Line of Credit | San Mateo Credit Facility | |||
Revolving Credit Agreement [Line Items] | |||
Outstanding letters of credit | 16,200 | ||
Borrowings under San Mateo Credit Facility | $ 240,000 |
Debt Credit Agreement (Details)
Debt Credit Agreement (Details) - USD ($) | Oct. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Apr. 30, 2019 | Dec. 19, 2018 |
Revolving Credit Facility | Third Amended Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Increase in borrowing base | $ 900,000,000 | ||||
Maximum borrowing commitment | $ 500,000,000 | ||||
Maximum facility amount | $ 1,500,000,000 | ||||
Line of Credit | San Mateo Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing commitment | $ 325,000,000 | $ 250,000,000 | |||
Line of credit, accordian feature | $ 400,000,000 | ||||
Subsequent Event | Line of Credit | San Mateo Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing commitment | $ 375,000,000 |
Debt Senior Unsecured Notes (De
Debt Senior Unsecured Notes (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Oct. 04, 2018 | Aug. 21, 2018 |
Debt Instrument [Line Items] | ||||
Debt issued | $ 1,039,020,000 | $ 1,037,837,000 | ||
Senior Notes | 2026 Notes Offering | ||||
Debt Instrument [Line Items] | ||||
Debt issued | $ 750,000,000 | |||
Interest rate | 5.875% | |||
Senior Notes | Additional 2026 Notes | ||||
Debt Instrument [Line Items] | ||||
Debt issued | $ 300,000,000 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 23.00% | 28.00% |
Equity (Details)
Equity (Details) - USD ($) $ in Millions | Feb. 25, 2019 | Feb. 15, 2017 | Apr. 30, 2019 | Feb. 28, 2019 | Feb. 26, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted in period (in shares) | 428,006 | |||||||||
Fair value | $ 9.2 | $ 16.8 | ||||||||
Ownership percentage | 100.00% | 100.00% | ||||||||
Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares granted in period (in shares) | 428,006 | |||||||||
Performance-Based Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period of shares | 3 years | |||||||||
Service-Based Restricted Stock Units To Be Settled In Cash | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares granted in period (in shares) | 259,038 | |||||||||
Service-Based Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted in period (in shares) | 205,361 | |||||||||
Vesting period of shares | 3 years | 3 years | ||||||||
Corporate Joint Venture | San Mateo | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Deferred performance incentives | $ 44.1 | $ 73.5 | ||||||||
Deferred performance incentives term | 3 years | 5 years | ||||||||
Performance incentives earned | $ 14.7 | $ 14.7 | ||||||||
Corporate Joint Venture | San Mateo II | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Due to related party | $ 125 | |||||||||
Capital expenditures incurred | 150 | |||||||||
Deferred performance incentives | $ 150 | |||||||||
Deferred performance incentives term | 5 years | |||||||||
Five Point | San Mateo II | Corporate Joint Venture | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Ownership percentage | 49.00% | |||||||||
Matador Resources Company | San Mateo II | Corporate Joint Venture | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Ownership percentage | 51.00% | |||||||||
San Mateo II | Five Point | Corporate Joint Venture | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Contributions to related party | $ 22.5 | $ 34 | ||||||||
San Mateo II | Matador Resources Company | Corporate Joint Venture | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Contributions to related party | $ 4.5 | $ 6 | ||||||||
Minimum | Performance-Based Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 0.00% | |||||||||
Maximum | Performance-Based Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 200.00% | |||||||||
Property Contribution | San Mateo II | Matador Resources Company | Corporate Joint Venture | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Contributions to related party | $ 1 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) $ in Thousands | Sep. 30, 2019USD ($)bblMMBTU$ / bbl$ / MMBTU | Dec. 31, 2018USD ($) |
Derivative [Line Items] | ||
Derivative Asset (Liability), Net | $ | $ 20,131 | $ 49,846 |
Open costless collar contracts | ||
Summary of contracts for oil and natural gas | ||
Fair Value of Asset (Liability) | $ | 18,990 | |
Open Swap Collar Contracts | ||
Summary of contracts for oil and natural gas | ||
Fair Value of Asset (Liability) | $ | $ (1,252) | |
Derivative Contract, Calculation Period One | Open costless collar contracts | Oil - WTI | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 1,950,000 | |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 50.26 | |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 70.94 | |
Fair Value of Asset (Liability) | $ | $ 3,242 | |
Derivative Contract, Calculation Period One | Open costless collar contracts | Natural Gas | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | MMBTU | 600,000 | |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | $ / MMBTU | 2.50 | |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | $ / MMBTU | 3.80 | |
Fair Value of Asset (Liability) | $ | $ 91 | |
Derivative Contract, Calculation Period One | Open Three-way Costless Collar Contracts | ||
Summary of contracts for oil and natural gas | ||
Fair Value of Asset (Liability) | $ | $ 2,393 | |
Derivative Contract, Calculation Period One | Open Three-way Costless Collar Contracts | Oil - WTI | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 330,000 | |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 60 | |
Fair Value of Asset (Liability) | $ | $ 2,216 | |
Derivative Contract, Calculation Period One | Open Three-way Costless Collar Contracts | Natural Gas | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 1,200,000 | |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 2.50 | |
Fair Value of Asset (Liability) | $ | $ 177 | |
Derivative Contract, Calculation Period One | Open Swap Collar Contracts | Oil Basis Swaps | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 1,308,000 | |
Derivative, Swap Type, Average Fixed Price | 0.47 | |
Fair Value of Asset (Liability) | $ | $ (248) | |
Derivative Contract, Calculation Period One | Short Call | Open Three-way Costless Collar Contracts | Oil - WTI | ||
Summary of contracts for oil and natural gas | ||
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 75 | |
Derivative Contract, Calculation Period One | Short Call | Open Three-way Costless Collar Contracts | Natural Gas | ||
Summary of contracts for oil and natural gas | ||
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 3 | |
Derivative Contract, Calculation Period One | Long Call | Open Three-way Costless Collar Contracts | Oil - WTI | ||
Summary of contracts for oil and natural gas | ||
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 78.85 | |
Derivative Contract, Calculation Period One | Long Call | Open Three-way Costless Collar Contracts | Natural Gas | ||
Summary of contracts for oil and natural gas | ||
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 3.24 | |
Derivative Contract, Calculation Period Two | Open costless collar contracts | Oil - WTI | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 4,860,000 | |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 48.50 | |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 67.44 | |
Fair Value of Asset (Liability) | $ | $ 15,657 | |
Derivative Contract, Calculation Period Two | Open Swap Collar Contracts | Oil Basis Swaps | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 4,494,000 | |
Derivative, Swap Type, Average Fixed Price | 0.42 | |
Fair Value of Asset (Liability) | $ | $ (864) | |
Derivative Contract, Calculation Period Three | Open Swap Collar Contracts | Oil Basis Swaps | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 2,880,000 | |
Derivative, Swap Type, Average Fixed Price | 0.65 | |
Fair Value of Asset (Liability) | $ | $ (140) |
Derivative Financial Instrume_4
Derivative Financial Instruments Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative liability | $ (20,131) | $ (49,846) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Summary of gross liability balances of derivative instruments | ||
Total | $ 20,131 | $ 49,846 |
Gross amounts netted in the condensed consolidated balance sheets | 0 | 0 |
Net amounts presented in the condensed consolidated balance sheets | 20,131 | 49,846 |
Current assets | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | 19,405 | 53,136 |
Gross amounts netted in the condensed consolidated balance sheets | (3,924) | (3,207) |
Oil, natural gas and natural gas liquids (NGL) derivatives | 15,481 | 49,929 |
Other assets | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | 6,365 | |
Gross amounts netted in the condensed consolidated balance sheets | (1,715) | |
Oil, natural gas and natural gas liquids (NGL) derivatives | 4,650 | |
Current liabilities | ||
Summary of gross liability balances of derivative instruments | ||
Gross amounts of recognized liabilities | (3,924) | (3,207) |
Gross amounts netted in the condensed consolidated balance sheet | 3,924 | 3,207 |
Oil, natural gas and natural gas liquids (NGL) derivatives | 0 | 0 |
Other liabilities | ||
Summary of gross liability balances of derivative instruments | ||
Gross amounts of recognized liabilities | (1,715) | (83) |
Gross amounts netted in the condensed consolidated balance sheet | 1,715 | 0 |
Oil, natural gas and natural gas liquids (NGL) derivatives | $ 0 | $ (83) |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain (loss) on derivatives | $ 3,346 | $ 5,424 | $ 7,781 | $ (1,322) |
Unrealized gain (loss) on derivatives | 9,847 | (21,337) | (29,715) | (9,492) |
Total | 13,193 | (15,913) | (21,934) | (10,814) |
Revenues | ||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain (loss) on derivatives | 3,346 | 5,424 | 7,781 | (1,322) |
Unrealized gain (loss) on derivatives | 9,847 | (21,337) | (29,715) | (9,492) |
Oil | Revenues | ||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain (loss) on derivatives | 2,856 | 5,424 | 7,387 | (1,373) |
Unrealized gain (loss) on derivatives | 10,379 | (21,240) | (29,699) | (8,284) |
Natural Gas | Revenues | ||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain (loss) on derivatives | 490 | 0 | 394 | 51 |
Unrealized gain (loss) on derivatives | $ (532) | $ (97) | $ (16) | $ (1,208) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets (Liabilities) | ||
Total | $ 20,131 | $ 49,846 |
Fair value on a recurring basis | ||
Assets (Liabilities) | ||
Derivative Asset | 268 | 284 |
Derivative Liability | 19,863 | 49,562 |
Total | 20,131 | 49,846 |
Fair value on a recurring basis | Level 1 | ||
Assets (Liabilities) | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Total | 0 | 0 |
Fair value on a recurring basis | Level 2 | ||
Assets (Liabilities) | ||
Derivative Asset | 268 | 284 |
Derivative Liability | 19,863 | 49,562 |
Total | 20,131 | 49,846 |
Fair value on a recurring basis | Level 3 | ||
Assets (Liabilities) | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Senior Notes Due 2023 | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of notes | $ 1,060 | $ 970 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Feb. 25, 2019 | Feb. 17, 2017 | Oct. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Delivery Of Natural Gas And Oil Production To Third Parties | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Volume requirement commitment | $ 416.1 | $ 416.1 | |||||
Payment for volume requirement agreement | 7 | $ 6.7 | 19.9 | $ 15.8 | |||
Corporate Joint Venture | San Mateo Midstream | |||||||
Commitments and Contingencies (Textual) [Abstract] | |||||||
Contractual obligation | 161.8 | $ 161.8 | |||||
Contract agreement term | 15 years | ||||||
Rustler Breaks and Wolf Asset Area | Corporate Joint Venture | San Mateo Midstream | |||||||
Commitments and Contingencies (Textual) [Abstract] | |||||||
Term of contractual obligation | 15 years | ||||||
Rustler Breaks Asset Area | Corporate Joint Venture | San Mateo Midstream | |||||||
Commitments and Contingencies (Textual) [Abstract] | |||||||
Term of contractual obligation | 15 years | ||||||
Natural Gas Transportation and Fractionation Agreement | Eddy County | |||||||
Commitments and Contingencies (Textual) [Abstract] | |||||||
Agreement term | 7 years | ||||||
Contractual obligation | 132.3 | $ 132.3 | |||||
Operational Agreements | San Mateo Midstream | |||||||
Commitments and Contingencies (Textual) [Abstract] | |||||||
Contractual obligation | $ 363.8 | ||||||
Engineering, Procurement, Construction And Installation Of Processing Plant | San Mateo Midstream | |||||||
Commitments and Contingencies (Textual) [Abstract] | |||||||
Contractual obligation | 80.3 | 80.3 | |||||
Payments made under agreement | 9.9 | ||||||
Remaining obligation | $ 62.1 | $ 62.1 | |||||
Subsequent Event | 2019 15-Year Fixed Fee Natural Gas Transportation Agreement | Eddy County | |||||||
Commitments and Contingencies (Textual) [Abstract] | |||||||
Agreement term | 15 years | ||||||
Contractual obligation | $ 106.9 |
Supplemental Disclosures (Detai
Supplemental Disclosures (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | $ 222,565 | $ 170,855 |
Accrued evaluated and unproved and unevaluated property costs | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 113,904 | 86,318 |
Accrued midstream property costs | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 32,647 | 16,808 |
Accrued lease operating expenses | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 23,480 | 12,705 |
Accrued interest on debt | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 3,107 | 22,448 |
Accrued asset retirement obligations | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 619 | 1,350 |
Accrued partners’ share of joint interest charges | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 32,769 | 17,037 |
Other | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | $ 16,039 | $ 14,189 |
Supplemental Disclosures (Det_2
Supplemental Disclosures (Details 1) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash paid for interest expense, net of amounts capitalized | $ 58,860 | $ 29,773 |
Increase in liabilities for oil and natural gas properties capital expenditures | 26,862 | 5,157 |
Increase in liabilities for midstream properties capital expenditures | 16,661 | 1,864 |
Increase in liabilities for accrued cost to issue senior notes | 0 | 510 |
Transfer of inventory from oil and natural gas properties | 211 | 305 |
Transfer of inventory to midstream properties | 0 | (2,691) |
Mineral Properties | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Increase (decrease) in asset retirement obligations | 6,946 | 1,705 |
Midstream Properties | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Increase (decrease) in asset retirement obligations | $ 169 | $ 547 |
Supplemental Disclosures Supple
Supplemental Disclosures Supplemental Disclosures - Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash | $ 15,709 | $ 64,545 | $ 45,942 | |
Restricted cash | 25,097 | 19,439 | 7,066 | |
Total cash and restricted cash | $ 40,806 | $ 83,984 | $ 53,008 | $ 102,482 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 264,498 | $ 223,091 | $ 715,218 | $ 620,539 | |
Lease bonus - mineral acreage | 1,711 | 0 | $ 1,711 | 0 | |
Number of segments | segment | 2 | ||||
Realized gain (loss) on derivatives | 3,346 | 5,424 | $ 7,781 | (1,322) | |
Unrealized gain (loss) on derivatives | 9,847 | (21,337) | (29,715) | (9,492) | |
Expenses | 193,300 | 139,325 | 524,564 | 394,517 | |
Operating (loss) income | 86,102 | 67,853 | 170,431 | 215,208 | |
Total assets | 3,936,639 | 3,154,202 | 3,936,639 | 3,154,202 | $ 3,455,518 |
Capital expenditures | 269,466 | 764,216 | 706,954 | 1,232,881 | |
Depletion, depreciation and amortization | 92,498 | 70,457 | 249,497 | 192,664 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Realized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |
Expenses | 18,613 | 19,041 | 53,349 | 55,338 | |
Operating (loss) income | (18,613) | (19,041) | (53,349) | (55,338) | |
Total assets | 37,178 | 65,194 | 37,178 | 65,194 | |
Capital expenditures | 1,705 | 312 | 3,911 | 1,570 | |
Depletion, depreciation and amortization | 700 | 600 | 1,900 | 1,800 | |
Consolidations and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Realized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |
Expenses | (20,276) | (18,141) | (56,499) | (47,374) | |
Operating (loss) income | 0 | 0 | 0 | 0 | |
Total assets | 0 | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Exploration and Production | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Realized gain (loss) on derivatives | 3,346 | 5,424 | 7,781 | (1,322) | |
Unrealized gain (loss) on derivatives | 9,847 | (21,337) | (29,715) | (9,492) | |
Expenses | 164,352 | 128,263 | 447,844 | 359,830 | |
Operating (loss) income | 81,820 | 71,072 | 164,427 | 232,093 | |
Total assets | 3,332,910 | 2,697,685 | 3,332,910 | 2,697,685 | |
Capital expenditures | 201,323 | 716,751 | 565,466 | 1,105,541 | |
Depletion, depreciation and amortization | 87,700 | 67,200 | 236,000 | 184,400 | |
Capital expenditures attributable to land and seismic acquisition expenditures | 6,500 | 554,900 | 37,800 | 613,800 | |
Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Realized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |
Expenses | 30,611 | 10,162 | 79,870 | 26,723 | |
Operating (loss) income | 22,895 | 15,822 | 59,353 | 38,453 | |
Total assets | 566,551 | 391,323 | 566,551 | 391,323 | |
Capital expenditures | 66,438 | 47,153 | 137,577 | 125,770 | |
Depletion, depreciation and amortization | 4,100 | 2,600 | 11,600 | 6,500 | |
Net income attributable to non-controlling interest in subsidiaries | (7,300) | ||||
Capital expenditures attributable to non-controlling interest | 47,200 | 23,100 | 85,100 | 61,600 | |
Operating Income (Loss) | Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net income attributable to non-controlling interest in subsidiaries | (9,800) | (25,600) | (18,200) | ||
Oil and natural gas revenues | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 229,377 | 216,282 | 633,706 | 607,255 | |
Oil and natural gas revenues | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Oil and natural gas revenues | Consolidations and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Oil and natural gas revenues | Exploration and Production | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 228,188 | 215,248 | 629,414 | 602,737 | |
Oil and natural gas revenues | Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,189 | 1,034 | 4,292 | 4,518 | |
Third-party midstream services revenues | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 15,257 | 6,809 | 41,454 | 13,284 | |
Third-party midstream services revenues | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Third-party midstream services revenues | Consolidations and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (20,276) | (18,141) | (56,499) | (47,374) | |
Third-party midstream services revenues | Exploration and Production | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Third-party midstream services revenues | Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 35,533 | 24,950 | 97,953 | 60,658 | |
Sales of purchased natural gas | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 19,864 | $ 0 | 40,058 | $ 0 | |
Lease bonus - mineral acreage | 1,711 | 1,711 | |||
Sales of purchased natural gas | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | |||
Lease bonus - mineral acreage | 0 | 0 | |||
Sales of purchased natural gas | Consolidations and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | |||
Lease bonus - mineral acreage | 0 | 0 | |||
Sales of purchased natural gas | Exploration and Production | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3,080 | 3,080 | |||
Lease bonus - mineral acreage | 1,711 | 1,711 | |||
Sales of purchased natural gas | Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 16,784 | 36,978 | |||
Lease bonus - mineral acreage | $ 0 | $ 0 |
Subsidiary Guarantors Consolida
Subsidiary Guarantors Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Equity Method Investment, Ownership Percentage | 100.00% | ||
Intercompany receivable | $ 0 | $ 0 | |
Current assets | 269,316 | 305,685 | |
Net property and equipment | 3,560,125 | 3,122,864 | |
Investment in subsidiaries | 0 | 0 | |
Long-term assets | 107,198 | 26,969 | |
Total assets | 3,936,639 | 3,455,518 | $ 3,154,202 |
Intercompany payable | 0 | 0 | |
Current liabilities | 403,357 | 330,022 | |
Senior unsecured notes payable | 1,039,020 | 1,037,837 | |
Other long-term liabilities | 581,844 | 308,002 | |
Total equity attributable to Matador Resources Company | 1,795,307 | 1,688,880 | |
Non-controlling interest in subsidiaries | 117,111 | 90,777 | |
Total liabilities and equity | 3,936,639 | 3,455,518 | |
Eliminating Entries | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | (1,583,718) | (1,274,221) | |
Current assets | 0 | 0 | |
Net property and equipment | 0 | 0 | |
Investment in subsidiaries | (1,407,993) | (1,585,747) | |
Long-term assets | (9,366) | (9,502) | |
Total assets | (3,001,077) | (2,869,470) | |
Intercompany payable | (1,583,718) | (1,274,221) | |
Current liabilities | (802) | (724) | |
Senior unsecured notes payable | 0 | 0 | |
Other long-term liabilities | (8,564) | (8,778) | |
Total equity attributable to Matador Resources Company | (1,407,993) | (1,585,747) | |
Non-controlling interest in subsidiaries | 0 | 0 | |
Total liabilities and equity | (3,001,077) | (2,869,470) | |
Matador | Reportable Legal Entities | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | 1,563,060 | 1,244,405 | |
Current assets | 3,762 | 4,109 | |
Net property and equipment | 0 | 0 | |
Investment in subsidiaries | 1,285,250 | 1,490,401 | |
Long-term assets | 3,440 | 23,897 | |
Total assets | 2,855,512 | 2,762,812 | |
Intercompany payable | 0 | 0 | |
Current liabilities | 0 | 22,874 | |
Senior unsecured notes payable | 1,039,020 | 1,037,837 | |
Other long-term liabilities | 21,185 | 13,221 | |
Total equity attributable to Matador Resources Company | 1,795,307 | 1,688,880 | |
Non-controlling interest in subsidiaries | 0 | 0 | |
Total liabilities and equity | 2,855,512 | 2,762,812 | |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | 20,658 | 29,816 | |
Current assets | 39,545 | 34,027 | |
Net property and equipment | 502,082 | 379,052 | |
Investment in subsidiaries | 0 | 0 | |
Long-term assets | 1,605 | 1,479 | |
Total assets | 563,890 | 444,374 | |
Intercompany payable | 0 | 0 | |
Current liabilities | 53,627 | 27,988 | |
Senior unsecured notes payable | 0 | 0 | |
Other long-term liabilities | 270,409 | 230,263 | |
Total equity attributable to Matador Resources Company | 122,743 | 95,346 | |
Non-controlling interest in subsidiaries | 117,111 | 90,777 | |
Total liabilities and equity | 563,890 | 444,374 | |
Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | 0 | 0 | |
Current assets | 226,009 | 267,549 | |
Net property and equipment | 3,058,043 | 2,743,812 | |
Investment in subsidiaries | 122,743 | 95,346 | |
Long-term assets | 111,519 | 11,095 | |
Total assets | 3,518,314 | 3,117,802 | |
Intercompany payable | 1,583,718 | 1,274,221 | |
Current liabilities | 350,532 | 279,884 | |
Senior unsecured notes payable | 0 | 0 | |
Other long-term liabilities | 298,814 | 73,296 | |
Total equity attributable to Matador Resources Company | 1,285,250 | 1,490,401 | |
Non-controlling interest in subsidiaries | 0 | 0 | |
Total liabilities and equity | $ 3,518,314 | $ 3,117,802 |
Subsidiary Guarantors Consoli_2
Subsidiary Guarantors Consolidated Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | $ 279,402 | $ 207,178 | $ 694,995 | $ 609,725 |
Total expenses | 193,300 | 139,325 | 524,564 | 394,517 |
Operating (loss) income | 86,102 | 67,853 | 170,431 | 215,208 |
Interest expense | (18,175) | (10,340) | (54,172) | (26,835) |
Other (expense) income | (245) | (32,202) | (777) | (32,501) |
Earnings in subsidiaries | 0 | 0 | 0 | 0 |
Income before income taxes | 67,243 | 25,115 | 114,675 | 155,676 |
Total income tax provision | 13,490 | 0 | 25,335 | 0 |
Net income attributable to non-controlling interest in subsidiaries | (9,800) | (7,321) | (25,582) | (18,182) |
Net income attributable to Matador Resources Company shareholders | 43,953 | 17,794 | 63,758 | 137,494 |
Net loss on asset sales and inventory impairment | (439) | (196) | (807) | (196) |
Eliminating Entries | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | (19,609) | (17,848) | (54,745) | (46,550) |
Total expenses | (19,609) | (17,848) | (54,745) | (46,550) |
Operating (loss) income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Other (expense) income | 0 | 0 | 0 | 0 |
Earnings in subsidiaries | (84,393) | (68,169) | (166,080) | (218,076) |
Income before income taxes | (84,393) | (68,169) | (166,080) | (218,076) |
Total income tax provision | 0 | 0 | ||
Net income attributable to non-controlling interest in subsidiaries | 0 | 0 | 0 | 0 |
Net income attributable to Matador Resources Company shareholders | (84,393) | (68,169) | (166,080) | (218,076) |
Net loss on asset sales and inventory impairment | 0 | 0 | 0 | 0 |
Matador | Reportable Legal Entities | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Total expenses | 1,034 | 1,184 | 2,970 | 3,596 |
Operating (loss) income | (1,034) | (1,184) | (2,970) | (3,596) |
Interest expense | (15,716) | (10,340) | (47,391) | (26,835) |
Other (expense) income | 0 | (31,232) | 0 | (31,226) |
Earnings in subsidiaries | 74,193 | 60,550 | 139,454 | 199,151 |
Income before income taxes | 57,443 | 17,794 | 89,093 | 137,494 |
Total income tax provision | 13,490 | 25,335 | ||
Net income attributable to non-controlling interest in subsidiaries | 0 | 0 | 0 | 0 |
Net income attributable to Matador Resources Company shareholders | 43,953 | 17,794 | 63,758 | 137,494 |
Net loss on asset sales and inventory impairment | 0 | 0 | 0 | 0 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | 52,776 | 25,640 | 137,372 | 64,190 |
Total expenses | 30,317 | 10,708 | 78,386 | 27,102 |
Operating (loss) income | 22,459 | 14,932 | 58,986 | 37,088 |
Interest expense | (2,459) | 0 | (6,781) | 0 |
Other (expense) income | 0 | 8 | 3 | 19 |
Earnings in subsidiaries | 0 | 0 | 0 | 0 |
Income before income taxes | 20,000 | 14,940 | 52,208 | 37,107 |
Total income tax provision | 0 | 0 | ||
Net income attributable to non-controlling interest in subsidiaries | (9,800) | (7,321) | (25,582) | (18,182) |
Net income attributable to Matador Resources Company shareholders | 10,200 | 7,619 | 26,626 | 18,925 |
Net loss on asset sales and inventory impairment | 0 | 0 | 0 | 0 |
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | 246,235 | 199,386 | 612,368 | 592,085 |
Total expenses | 181,558 | 145,281 | 497,953 | 410,369 |
Operating (loss) income | 64,677 | 54,105 | 114,415 | 181,716 |
Interest expense | 0 | 0 | 0 | 0 |
Other (expense) income | (245) | (978) | (780) | (1,294) |
Earnings in subsidiaries | 10,200 | 7,619 | 26,626 | 18,925 |
Income before income taxes | 74,193 | 60,550 | 139,454 | 199,151 |
Total income tax provision | 0 | 0 | ||
Net income attributable to non-controlling interest in subsidiaries | 0 | 0 | 0 | 0 |
Net income attributable to Matador Resources Company shareholders | 74,193 | 60,550 | 139,454 | 199,151 |
Net loss on asset sales and inventory impairment | $ (439) | $ (196) | $ (807) | $ (196) |
Subsidiary Guarantors Consoli_3
Subsidiary Guarantors Consolidated Cash Flow (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | $ 353,127 | $ 419,318 |
Net cash used in investing activities | (639,049) | (1,220,528) |
Net cash provided by financing activities | 242,744 | 751,736 |
Increase in cash and restricted cash | (43,178) | (49,474) |
Cash and restricted cash at beginning of period | 83,984 | 102,482 |
Cash and restricted cash at end of period | 40,806 | 53,008 |
Eliminating Entries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 0 | 0 |
Net cash used in investing activities | (14,144) | 53,295 |
Net cash provided by financing activities | 14,144 | (53,295) |
Increase in cash and restricted cash | 0 | 0 |
Cash and restricted cash at beginning of period | 0 | 0 |
Cash and restricted cash at end of period | 0 | 0 |
Matador | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | (423) | (361,016) |
Net cash used in investing activities | 0 | 0 |
Net cash provided by financing activities | 0 | 361,155 |
Increase in cash and restricted cash | (423) | 139 |
Cash and restricted cash at beginning of period | 456 | 286 |
Cash and restricted cash at end of period | 33 | 425 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 82,812 | 12,318 |
Net cash used in investing activities | (116,967) | (120,836) |
Net cash provided by financing activities | 39,888 | 109,400 |
Increase in cash and restricted cash | 5,733 | 882 |
Cash and restricted cash at beginning of period | 18,841 | 5,663 |
Cash and restricted cash at end of period | 24,574 | 6,545 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 270,738 | 768,016 |
Net cash used in investing activities | (507,938) | (1,152,987) |
Net cash provided by financing activities | 188,712 | 334,476 |
Increase in cash and restricted cash | (48,488) | (50,495) |
Cash and restricted cash at beginning of period | 64,687 | 96,533 |
Cash and restricted cash at end of period | $ 16,199 | $ 46,038 |