Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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 $0.01 per share | |
Trading Symbol | MTDR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 117,335,598 | |
Entity Central Index Key | 0001520006 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 73,128 | $ 57,916 |
Restricted cash | 34,663 | 33,467 |
Accounts receivable | ||
Oil and natural gas revenues | 175,265 | 85,098 |
Joint interest billings | 41,184 | 34,823 |
Other | 31,905 | 17,212 |
Derivative instruments | 3,157 | 6,727 |
Lease and well equipment inventory | 12,137 | 10,584 |
Prepaid expenses and other current assets | 25,189 | 15,802 |
Total current assets | 396,628 | 261,629 |
Oil and natural gas properties, full-cost method | ||
Evaluated | 5,656,031 | 5,295,931 |
Unproved and unevaluated | 918,885 | 902,133 |
Midstream properties | 887,982 | 841,695 |
Other property and equipment | 30,202 | 29,561 |
Less accumulated depletion, depreciation and amortization | (3,956,919) | (3,701,551) |
Net property and equipment | 3,536,181 | 3,367,769 |
Other assets | ||
Derivative instruments | 859 | 2,570 |
Deferred income taxes | 13,878 | 342 |
Other long-term assets | 37,947 | 54,970 |
Total assets | 3,985,493 | 3,687,280 |
Current liabilities | ||
Accounts payable | 33,402 | 13,982 |
Accrued liabilities | 175,634 | 119,158 |
Royalties payable | 91,362 | 66,049 |
Amounts due to affiliates | 27,415 | 4,934 |
Derivative instruments | 114,153 | 45,186 |
Advances from joint interest owners | 5,340 | 4,191 |
Other current liabilities | 25,446 | 37,436 |
Total current liabilities | 472,752 | 290,936 |
Long-term liabilities | ||
Borrowings under Credit Agreement | 120,000 | 440,000 |
Borrowings under San Mateo Credit Facility | 357,500 | 334,000 |
Senior unsecured notes payable | 1,042,184 | 1,040,998 |
Asset retirement obligations | 40,101 | 37,919 |
Derivative instruments | 2,930 | 0 |
Deferred income taxes | 16,285 | 0 |
Other long-term liabilities | 25,841 | 30,402 |
Total long-term liabilities | 1,604,841 | 1,883,319 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock - $0.01 par value, 160,000,000 shares authorized; 117,249,410 and 116,847,003 shares issued; and 117,103,248 and 116,844,768 shares outstanding, respectively | 1,172 | 1,169 |
Additional paid-in capital | 2,069,484 | 2,027,069 |
Accumulated deficit | (380,268) | (741,705) |
Treasury stock, at cost, 146,162 and 2,235 shares, respectively | (2,381) | (3) |
Total Matador Resources Company shareholders’ equity | 1,688,007 | 1,286,530 |
Non-controlling interest in subsidiaries | 219,893 | 226,495 |
Total shareholders’ equity | 1,907,900 | 1,513,025 |
Total liabilities and shareholders’ equity | $ 3,985,493 | $ 3,687,280 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 117,249,410 | 116,847,003 |
Common stock, shares outstanding (in shares) | 117,103,248 | 116,844,768 |
Treasury stock (in shares) | 146,162 | 2,235 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Revenues | $ 520,721 | $ 221,825 | $ 1,299,744 | $ 593,529 |
Lease bonus - mineral acreage | 0 | 0 | 0 | 4,062 |
Realized (loss) gain on derivatives | (57,419) | (5,406) | (125,943) | 49,571 |
Unrealized gain (loss) on derivatives | 9,049 | (13,033) | (77,178) | (9,271) |
Total revenues | 472,351 | 203,386 | 1,096,623 | 637,891 |
Expenses | ||||
Production taxes, transportation and processing | 48,896 | 25,840 | 126,913 | 66,353 |
Lease operating | 27,433 | 23,392 | 82,124 | 80,464 |
Purchased natural gas | 34,581 | 11,144 | 47,064 | 30,124 |
Depletion, depreciation and amortization | 89,061 | 88,025 | 255,368 | 272,082 |
Accretion of asset retirement obligations | 518 | 478 | 1,529 | 1,449 |
Full-cost ceiling impairment | 0 | 251,163 | 0 | 575,164 |
General and administrative | 24,633 | 15,100 | 71,218 | 46,045 |
Total expenses | 242,165 | 424,527 | 628,668 | 1,100,810 |
Operating income (loss) | 230,186 | (221,141) | 467,955 | (462,919) |
Other income (expense) | ||||
Net loss on asset sales and impairment | (251) | 0 | (251) | (2,632) |
Interest expense | (17,989) | (18,231) | (55,579) | (56,340) |
Other (expense) income | (585) | (238) | (1,246) | 1,555 |
Total other expense | (18,825) | (18,469) | (57,076) | (57,417) |
Income (loss) before income taxes | 211,361 | (239,610) | 410,879 | (520,336) |
Income tax provision (benefit) | ||||
Deferred | (6,701) | 26,497 | 1,488 | (43,369) |
Income tax (benefit) provision | (6,701) | 26,497 | 1,488 | (43,369) |
Net income (loss) | 218,062 | (266,107) | 409,391 | (476,967) |
Net income attributable to non-controlling interest in subsidiaries | (14,434) | (9,957) | (39,213) | (26,784) |
Net income (loss) attributable to Matador Resources Company shareholders | $ 203,628 | $ (276,064) | $ 370,178 | $ (503,751) |
Earnings (loss) per common share | ||||
Basic (in dollars per share) | $ 1.74 | $ (2.38) | $ 3.17 | $ (4.34) |
Diluted (in dollars per share) | $ 1.71 | $ (2.38) | $ 3.12 | $ (4.34) |
Weighted average common shares outstanding | ||||
Basic (in shares) | 117,008 | 116,155 | 116,872 | 116,036 |
Diluted (in shares) | 119,197 | 116,155 | 118,788 | 116,036 |
Oil and natural gas revenues | ||||
Revenues | ||||
Revenues | $ 461,465 | $ 189,104 | $ 1,189,772 | $ 505,785 |
Third-party midstream services revenues | ||||
Revenues | ||||
Revenues | 20,486 | 19,363 | 55,774 | 49,861 |
Expenses | ||||
Plant and other midstream services operating | 17,043 | 9,385 | 44,452 | 29,129 |
Sales of purchased natural gas | ||||
Revenues | ||||
Revenues | $ 38,770 | $ 13,358 | $ 54,198 | $ 37,883 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY — UNAUDITED - USD ($) $ in Thousands | Total | Total shareholders’ equity attributable to Matador Resources Company | Common Stock | Additional paid-in capital | Accumulated deficit | Treasury Stock | Non-controlling interest in subsidiaries |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 116,644,000 | 1,000 | |||||
Balance at beginning of period at Dec. 31, 2019 | $ 1,969,452 | $ 1,833,654 | $ 1,166 | $ 1,981,014 | $ (148,500) | $ (26) | $ 135,798 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock pursuant to employee stock compensation plan (in shares) | 3,000 | ||||||
Issuance of common stock pursuant to employee stock compensation plan | 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 | ||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 5,066 | 5,066 | 5,066 | ||||
Stock options exercised, net of options forfeited in net share settlements | (24) | (24) | (24) | ||||
Liability-based stock option awards settled in equity (in shares) | 22,000 | ||||||
Liability-based stock option awards settled in equity | 298 | 298 | $ 1 | 297 | |||
Restricted stock forfeited (in shares) | 106,000 | ||||||
Restricted stock forfeited | (1,267) | (1,267) | $ (1,267) | ||||
Contribution related to formation of San Mateo | 11,613 | 11,613 | 11,613 | ||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, net of tax | 45,674 | 16,280 | 16,280 | 29,394 | |||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (11,515) | (11,515) | |||||
Current period net (loss) income | 135,083 | 125,729 | 125,729 | 9,354 | |||
Balance at end of period (in shares) at Mar. 31, 2020 | 116,671,000 | 107,000 | |||||
Balance at end of period at Mar. 31, 2020 | 2,154,380 | 1,991,349 | $ 1,167 | 2,014,246 | (22,771) | $ (1,293) | 163,031 |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 116,644,000 | 1,000 | |||||
Balance at beginning of period at Dec. 31, 2019 | 1,969,452 | 1,833,654 | $ 1,166 | 1,981,014 | (148,500) | $ (26) | 135,798 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Current period net (loss) income | (476,967) | ||||||
Balance at end of period (in shares) at Sep. 30, 2020 | 116,984,000 | 148,000 | |||||
Balance at end of period at Sep. 30, 2020 | 1,577,629 | 1,371,933 | $ 1,170 | 2,024,526 | (652,251) | $ (1,512) | 205,696 |
Balance at beginning of period (in shares) at Mar. 31, 2020 | 116,671,000 | 107,000 | |||||
Balance at beginning of period at Mar. 31, 2020 | 2,154,380 | 1,991,349 | $ 1,167 | 2,014,246 | (22,771) | $ (1,293) | 163,031 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock pursuant to employee stock compensation plan (in shares) | 230,000 | ||||||
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) | 83,000 | ||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | $ 1 | (1) | ||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 4,103 | 4,103 | 4,103 | ||||
Restricted stock forfeited (in shares) | 33,000 | ||||||
Restricted stock forfeited | (156) | (156) | $ (156) | ||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, net of tax | 16,652 | 1,952 | 1,952 | 14,700 | |||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (10,535) | (10,535) | |||||
Current period net (loss) income | (345,943) | (353,416) | (353,416) | 7,473 | |||
Balance at end of period (in shares) at Jun. 30, 2020 | 116,984,000 | 140,000 | |||||
Balance at end of period at Jun. 30, 2020 | 1,818,501 | 1,643,832 | $ 1,170 | 2,020,298 | (376,187) | $ (1,449) | 174,669 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Contribution related to formation of San Mateo, net of tax | 3,100 | ||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 4,228 | 4,228 | 4,228 | ||||
Restricted stock forfeited (in shares) | 8,000 | ||||||
Restricted stock forfeited | (63) | (63) | $ (63) | ||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, net of tax | 31,850 | 31,850 | |||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (10,780) | (10,780) | |||||
Current period net (loss) income | (266,107) | (276,064) | (276,064) | 9,957 | |||
Balance at end of period (in shares) at Sep. 30, 2020 | 116,984,000 | 148,000 | |||||
Balance at end of period at Sep. 30, 2020 | $ 1,577,629 | 1,371,933 | $ 1,170 | 2,024,526 | (652,251) | $ (1,512) | 205,696 |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 116,844,768 | 116,847,000 | 2,000 | ||||
Balance at beginning of period at Dec. 31, 2020 | $ 1,513,025 | 1,286,530 | $ 1,169 | 2,027,069 | (741,705) | $ (3) | 226,495 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared | (2,913) | (2,913) | (2,913) | ||||
Issuance of common stock pursuant to employee stock compensation plan (in shares) | 3,000 | ||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | ||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 9,000 | ||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | ||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 1,477 | 1,477 | 1,477 | ||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 13,000 | ||||||
Stock options exercised, net of options forfeited in net share settlements | 0 | ||||||
Restricted stock forfeited (in shares) | 90,000 | ||||||
Restricted stock forfeited | (1,720) | (1,720) | (219) | $ (1,501) | |||
Contribution related to formation of San Mateo | 15,376 | 15,376 | 15,376 | ||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (14,210) | (14,210) | |||||
Current period net (loss) income | 69,498 | 60,645 | 60,645 | 8,853 | |||
Balance at end of period (in shares) at Mar. 31, 2021 | 116,872,000 | 92,000 | |||||
Balance at end of period at Mar. 31, 2021 | $ 1,580,533 | 1,359,395 | $ 1,169 | 2,043,703 | (683,973) | $ (1,504) | 221,138 |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 116,844,768 | 116,847,000 | 2,000 | ||||
Balance at beginning of period at Dec. 31, 2020 | $ 1,513,025 | 1,286,530 | $ 1,169 | 2,027,069 | (741,705) | $ (3) | 226,495 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Current period net (loss) income | $ 409,391 | ||||||
Balance at end of period (in shares) at Sep. 30, 2021 | 117,103,248 | 117,249,000 | 146,000 | ||||
Balance at end of period at Sep. 30, 2021 | $ 1,907,900 | 1,688,007 | $ 1,172 | 2,069,484 | (380,268) | $ (2,381) | 219,893 |
Balance at beginning of period (in shares) at Mar. 31, 2021 | 116,872,000 | 92,000 | |||||
Balance at beginning of period at Mar. 31, 2021 | 1,580,533 | 1,359,395 | $ 1,169 | 2,043,703 | (683,973) | $ (1,504) | 221,138 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared | (2,913) | (2,913) | (2,913) | ||||
Issuance of common stock pursuant to employee stock compensation plan (in shares) | 138,000 | ||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | $ 1 | (1) | ||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 73,000 | ||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | $ 1 | (1) | ||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 2,289 | 2,289 | 2,289 | ||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 40,000 | ||||||
Stock options exercised, net of options forfeited in net share settlements | 0 | ||||||
Restricted stock forfeited (in shares) | 38,000 | ||||||
Restricted stock forfeited | (1,164) | (1,164) | (425) | $ (739) | |||
Contribution related to formation of San Mateo | 16,250 | 16,250 | 16,250 | ||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (14,700) | (14,700) | |||||
Current period net (loss) income | 121,831 | 105,905 | 105,905 | 15,926 | |||
Balance at end of period (in shares) at Jun. 30, 2021 | 117,123,000 | 130,000 | |||||
Balance at end of period at Jun. 30, 2021 | 1,702,126 | 1,479,762 | $ 1,171 | 2,061,815 | (580,981) | $ (2,243) | 222,364 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared | (2,915) | (2,915) | (2,915) | ||||
Issuance of common stock pursuant to employee stock compensation plan (in shares) | 3,000 | ||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 3,856 | 3,856 | 3,856 | ||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 123,000 | ||||||
Stock options exercised, net of options forfeited in net share settlements | 212 | 212 | $ 1 | 211 | |||
Restricted stock forfeited (in shares) | 16,000 | ||||||
Restricted stock forfeited | (1,276) | (1,276) | (1,138) | $ (138) | |||
Contribution related to formation of San Mateo | 4,740 | 4,740 | 4,740 | ||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (16,905) | (16,905) | |||||
Current period net (loss) income | $ 218,062 | 203,628 | 203,628 | 14,434 | |||
Balance at end of period (in shares) at Sep. 30, 2021 | 117,103,248 | 117,249,000 | 146,000 | ||||
Balance at end of period at Sep. 30, 2021 | $ 1,907,900 | $ 1,688,007 | $ 1,172 | $ 2,069,484 | $ (380,268) | $ (2,381) | $ 219,893 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Contribution related to formation of San Mateo, net of tax | $ 1,300 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY — UNAUDITED (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Contribution related to formation of San Mateo, net of tax | $ 3,100 | |
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, tax | $ 500 | 4,300 |
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net income (loss) | $ 409,391 | $ (476,967) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Unrealized loss on derivatives | 77,178 | 9,271 |
Depletion, depreciation and amortization | 255,368 | 272,082 |
Accretion of asset retirement obligations | 1,529 | 1,449 |
Full-cost ceiling impairment | 0 | 575,164 |
Stock-based compensation expense | 5,617 | 10,449 |
Deferred income tax provision (benefit) | 1,488 | (43,369) |
Amortization of debt issuance cost | 2,443 | 2,114 |
Net loss on asset sales and impairment | 251 | 2,632 |
Changes in operating assets and liabilities | ||
Accounts receivable | (111,221) | 52,060 |
Lease and well equipment inventory | (1,179) | (632) |
Prepaid expenses and other current assets | (9,515) | (411) |
Other long-term assets | 637 | 1,784 |
Accounts payable, accrued liabilities and other current liabilities | 60,619 | (61,452) |
Royalties payable | 25,313 | (16,870) |
Advances from joint interest owners | 1,149 | (7,125) |
Other long-term liabilities | (242) | (220) |
Net cash provided by operating activities | 718,826 | 319,959 |
Investing activities | ||
Drilling, completion and equipping capital expenditures | (317,486) | (400,554) |
Acquisition of oil and natural gas properties | (29,720) | (65,437) |
Midstream capital expenditures | (40,222) | (197,942) |
Expenditures for other property and equipment | (465) | (1,796) |
Proceeds from sale of assets | 4,215 | 4,574 |
Net cash used in investing activities | (383,678) | (661,155) |
Financing activities | ||
Repayments of borrowings under Credit Agreement | (390,000) | 0 |
Borrowings under Credit Agreement | 70,000 | 220,000 |
Repayments of borrowings under San Mateo Credit Facility | (64,000) | 0 |
Borrowings under San Mateo Credit Facility | 87,500 | 38,400 |
Cost to amend credit facilities | (878) | (660) |
Proceeds from stock options exercised | 213 | 45 |
Dividends paid | (8,741) | 0 |
Contributions related to formation of San Mateo | 37,626 | 14,700 |
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 0 | 99,022 |
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (45,815) | (32,830) |
Taxes paid related to net share settlement of stock-based compensation | (4,161) | (1,556) |
Other | (484) | 6,850 |
Net cash (used in) provided by financing activities | (318,740) | 343,971 |
Increase in cash and restricted cash | 16,408 | 2,775 |
Cash and restricted cash at beginning of period | 91,383 | 65,128 |
Cash and restricted cash at end of period | $ 107,791 | $ 67,903 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONSMatador 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 venture, San Mateo Midstream, LLC (collectively with its subsidiaries, “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 produced water gathering services and produced water disposal services to third parties. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020 filed with the SEC on February 26, 2021 (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, 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, 2021. Amounts as of December 31, 2020 are derived from the Company’s audited consolidated financial statements included in the Annual Report. 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. 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, 2021 and 2020 (in thousands). Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenues from contracts with customers $ 520,721 $ 221,825 $ 1,299,744 $ 593,529 Lease bonus - mineral acreage — — — 4,062 Realized (loss) gain on derivatives (57,419) (5,406) (125,943) 49,571 Unrealized gain (loss) on derivatives 9,049 (13,033) (77,178) (9,271) Total revenues $ 472,351 $ 203,386 $ 1,096,623 $ 637,891 Three Months Ended Nine Months Ended 2021 2020 2021 2020 Oil revenues $ 325,560 $ 150,620 $ 853,953 $ 414,379 Natural gas revenues 135,905 38,484 335,819 91,406 Third-party midstream services revenues 20,486 19,363 55,774 49,861 Sales of purchased natural gas 38,770 13,358 54,198 37,883 Total revenues from contracts with customers $ 520,721 $ 221,825 $ 1,299,744 $ 593,529 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 the three and nine months ended September 30, 2021, 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. At September 30, 2020, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $189.1 million. As a result, the Company recorded an impairment charge of $251.2 million to its net capitalized costs and a deferred income tax benefit of $62.1 million at September 30, 2020. At June 30, 2020, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $243.9 million. As a result, the Company recorded an impairment charge of $324.0 million to its net capitalized costs and a deferred income tax benefit of $80.1 million at June 30, 2020. These charges are reflected in the Company’s interim condensed consolidated statements of operations for the three and nine months ended September 30, 2020. The Company capitalized approximately $9.9 million and $7.6 million of its general and administrative costs and approximately $1.5 million and $2.0 million of its interest expense for the three months ended September 30, 2021 and 2020, respectively. The Company capitalized approximately $28.6 million and $23.9 million of its general and administrative costs and approximately $3.9 million and $5.2 million of its interest expense for the nine months ended September 30, 2021 and 2020, 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, 2021 and 2020 (in thousands). Three Months Ended Nine Months Ended 2021 2020 2021 2020 Weighted average common shares outstanding Basic 117,008 116,155 116,872 116,036 Dilutive effect of options and restricted stock units 2,189 — 1,916 — Diluted weighted average common shares outstanding 119,197 116,155 118,788 116,036 A total of 1.3 million options to purchase shares of Matador’s common stock were excluded from the diluted weighted average common shares outstanding for the nine months ended September 30, 2021 because their effects were anti-dilutive. A total of 2.5 million options to purchase shares of Matador’s common stock were excluded from the diluted weighted average common shares outstanding for both the three and nine months ended September 30, 2020, respectively, because their effects were anti-dilutive. Additionally, 0.7 million and 0.6 million restricted shares, which are participating securities, were excluded from the calculations above for the three and nine months ended September 30, 2020, respectively, as the security holders do not have the obligation to share in the losses of the Company. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS The following table summarizes the changes in the Company’s asset retirement obligations for the nine months ended September 30, 2021 (in thousands). Beginning asset retirement obligations $ 38,542 Liabilities incurred during period 1,066 Liabilities settled during period (96) Divestitures during period (709) Accretion expense 1,529 Ending asset retirement obligations 40,332 Less: current asset retirement obligations (1) (231) Long-term asset retirement obligations $ 40,101 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at September 30, 2021. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT At September 30, 2021, the Company had (i) $1.05 billion of outstanding senior notes due 2026 (the “Notes”), (ii) $120.0 million in borrowings outstanding under its reserves-based revolving credit facility (the “Credit Agreement”), (iii) approximately $45.8 million in outstanding letters of credit issued pursuant to the Credit Agreement and (iv) $7.5 million outstanding under an unsecured U.S. Small Business Administration loan. Between September 30, 2021 and October 26, 2021, the Company repaid $20.0 million of borrowings under the Credit Agreement. At September 30, 2021, San Mateo had $357.5 million in borrowings outstanding under its revolving credit facility (the “San Mateo Credit Facility”) and approximately $9.0 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. Between September 30, 2021 and October 26, 2021, San Mateo repaid $10.0 million of borrowings under 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 April 2021, the lenders completed their review of the Company’s proved oil and natural gas reserves, and, as a result, the borrowing base was reaffirmed at $900.0 million. The Company elected to keep the borrowing commitment at $700.0 million, the maximum facility amount remained $1.5 billion and no material changes were made to the terms of the Credit Agreement. This April 2021 redetermination constituted the regularly scheduled May 1 redetermination. Borrowings under the Credit Agreement are limited to the lowest of the borrowing base, the maximum facility amount and the elected commitment (subject to compliance with the covenant noted below). The Credit Agreement matures October 31, 2023. The Credit Agreement requires the Company to maintain a debt to EBITDA ratio, which is defined as debt outstanding (net of up to $50.0 million of cash or cash equivalents), divided by a rolling four quarter EBITDA calculation, of 4.0 or less. The Company believes that it was in compliance with the terms of the Credit Agreement at September 30, 2021. San Mateo Midstream, LLC The San Mateo Credit Facility is non-recourse with respect to Matador and its wholly-owned subsidiaries but is guaranteed by San Mateo’s subsidiaries and secured by substantially all of San Mateo’s assets, including real property. The San Mateo Credit Facility matures December 19, 2023 and was amended in June 2021 to increase the lender commitments under the revolving credit facility from $375.0 million to $450.0 million (subject to San Mateo’s compliance with the covenants noted below) and to increase the borrowing rate for a base rate loan or a Eurodollar loan under such facility by 0.50%. The San Mateo Credit Facility includes an accordion feature, which, after the aforementioned amendment, provides for potential increases in lender commitments to up to $700.0 million. The San Mateo Credit Facility requires San Mateo to maintain a debt to EBITDA ratio, which is defined as total consolidated funded indebtedness outstanding (as defined in the San Mateo Credit Facility) divided by a rolling four quarter EBITDA calculation, of 5.0 or less, subject to certain exceptions. The San Mateo Credit Facility also requires San Mateo to maintain an interest coverage ratio, which is defined as a rolling four quarter EBITDA calculation divided by San Mateo’s consolidated interest expense, of 2.5 or more. The San Mateo Credit Facility also restricts the ability of San Mateo to distribute cash to its members if San Mateo’s liquidity is less than 10% of the lender commitments under the San Mateo Credit Facility. The Company believes that San Mateo was in compliance with the terms of the San Mateo Credit Facility at September 30, 2021. Senior Unsecured Notes At September 30, 2021, the Company had $1.05 billion of outstanding Notes, which have a 5.875% coupon rate. The Notes 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, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES As a result of the full-cost ceiling impairments recorded in 2020, the Company recognized a valuation allowance against its net deferred tax assets for the three and nine months ended September 30, 2020. Due to a variety of factors, including the Company’s significant net income during the nine months ended September 30, 2021, the Company’s federal valuation allowance was reversed as of September 30, 2021 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, a valuation allowance will continue to be recognized until the state deferred tax assets are more likely than not to be utilized. The Company recorded an income tax benefit of $6.7 million and an income tax provision of $1.5 million for the three and nine months ended September 30, 2021, respectively. The Company’s income tax position for the three and nine months ended September 30, 2021 differed from amounts computed by applying the U.S. federal statutory rate to the pre-tax income due primarily to the impact of reversing the Company’s federal valuation allowance as of September 30, 2021, as well as permanent differences between book and tax income and state taxes, primarily in New Mexico. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
EQUITY | EQUITY Stock-based Compensation During the nine months ended September 30, 2021, the Company granted awards to certain of its employees of 334,649 service-based restricted stock units to be settled in cash, which are liability instruments, and 366,500 performance-based stock units and 334,876 shares of restricted stock, 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, 2023, as compared to a designated peer group. The service-based restricted stock units to be settled in cash vest ratably over three years, and the equity instruments are eligible to vest after three years. The fair value of these awards was approximately $43.3 million on the grant date. Common Stock Dividend The Company’s Board of Directors (the “Board”) declared a quarterly cash dividend of $0.025 per share of common stock in each of the first three quarters of 2021. The dividend, which totaled $2.9 million in each quarter, was paid on March 31, 2021, June 3, 2021 and September 3, 2021. In October 2021, the Board amended the Company’s dividend policy to increase the quarterly dividend and declared a quarterly cash dividend of $0.05 per share of common stock payable on December 1, 2021 to shareholders of record as of November 10, 2021. San Mateo Distributions and Contributions During the three months ended September 30, 2021 and 2020, San Mateo distributed $17.6 million and $11.2 million, respectively, to the Company and $16.9 million and $10.8 million, respectively, to a subsidiary of Five Point Energy LLC, the Company’s joint venture partner (“Five Point”). During the nine months ended September 30, 2021 and 2020, San Mateo distributed $47.7 million and $34.2 million, respectively, to the Company and $45.8 million and $32.8 million, respectively, to Five Point. During the three and nine months ended September 30, 2021, there were no contributions to San Mateo by either the Company or Five Point. During the three months ended September 30, 2020, the Company contributed $36.8 million and Five Point contributed $31.9 million of cash to San Mateo. During the nine months ended September 30, 2020, the Company contributed $59.7 million and Five Point contributed $99.0 million of cash to San Mateo, of which $23.1 million was paid to carry Matador’s proportionate interest in San Mateo. The portion of the amount contributed by Five Point to carry Matador’s proportionate interest was recorded in “Additional paid-in capital” in the Company’s interim unaudited condensed consolidated balance sheets for the nine ended September 30, 2020, net of the $4.8 million deferred tax impact to Matador related to this equity contribution. Performance Incentives Five Point paid to the Company $6.0 million in performance incentives during the three months ended September 30, 2021. No performance incentives were paid by Five Point to the Company during the three months ended September 30, 2020. Five Point paid to the Company $37.6 million and $14.7 million in performance incentives during the nine months ended September 30, 2021 and 2020, respectively. These performance incentives are recorded when received, net of the $1.3 million and $3.1 million deferred tax impact to Matador during the nine months ended September 30, 2021 and 2020, respectively, in “Additional paid-in capital” in the Company’s interim unaudited condensed consolidated balance sheets. These performance incentives for the three and nine months ended September 30, 2021 and 2020 are also denoted as “Contributions related to formation of San Mateo” under “Financing activities” in the Company’s interim unaudited condensed consolidated statements of cash flows and changes in shareholders’ equity. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTSAt September 30, 2021, the Company had various costless collar and swap contracts open and in place to mitigate its exposure to oil and natural gas price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and price floor and ceiling for the collars and fixed price for the swaps. At September 30, 2021, each contract was set to expire at varying times during 2021 and 2022. The Company had no open contracts associated with natural gas liquids (“NGL”) prices at September 30, 2021. The following is a summary of the Company’s open costless collar contracts for oil and natural gas at September 30, 2021. Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or $/MMBtu) Weighted Average Price Ceiling ($/Bbl or $/MMBtu) Fair Value of Oil 10/01/2021 - 12/31/2021 2,370,000 $ 42.06 $ 55.15 $ (46,669) Natural Gas 10/01/2021 - 12/31/2021 13,900,000 $ 2.53 $ 4.71 (24,169) Oil 01/01/2022 - 12/31/2022 2,040,000 $ 50.00 $ 67.85 (14,402) Natural Gas 01/01/2022 - 03/31/2022 8,250,000 $ 2.70 $ 6.33 (11,844) Total open costless collar contracts $ (97,084) The following is a summary of the Company’s open swap contracts for oil at September 30, 2021. Commodity Calculation Period Notional Quantity (Bbl) Fixed Price Fair Value of Oil 10/01/2021 - 12/31/2021 510,000 $ 35.26 $ (19,999) Total open swap contracts $ (19,999) The following is a summary of the Company’s open basis swap contracts for oil at September 30, 2021. Commodity Calculation Period Notional Quantity (Bbl) Fixed Price Fair Value of Oil Basis 10/01/2021 - 12/31/2021 2,100,000 $ 0.87 $ 623 Oil Basis 01/01/2022 - 12/31/2022 5,520,000 $ 0.95 3,393 Total open basis swap contracts $ 4,016 At September 30, 2021, the aggregate liability value for the Company’s open derivative financial instruments was $113.1 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, 2021 and December 31, 2020 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed September 30, 2021 Current assets $ 303,891 $ (300,734) $ 3,157 Other assets 56,035 (55,176) 859 Current liabilities (414,887) 300,734 (114,153) Long-term liabilities (58,106) 55,176 (2,930) Total $ (113,067) $ — $ (113,067) December 31, 2020 Current assets $ 382,328 $ (375,601) $ 6,727 Other assets 150,194 (147,624) 2,570 Current liabilities (420,787) 375,601 (45,186) Long-term liabilities (147,624) 147,624 — Total $ (35,889) $ — $ (35,889) 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 2021 2020 2021 2020 Derivative Instrument Oil Revenues: Realized (loss) gain on derivatives $ (52,774) $ (5,406) $ (121,460) $ 49,571 Natural Gas Revenues: Realized loss on derivatives (4,645) — (4,483) — Realized (loss) gain on derivatives (57,419) (5,406) (125,943) 49,571 Oil Revenues: Unrealized gain (loss) on derivatives 38,961 (9,843) (35,471) (7,980) Natural Gas Revenues: Unrealized loss on derivatives (29,912) (3,190) (41,707) (1,291) Unrealized gain (loss) on derivatives 9,049 (13,033) (77,178) (9,271) Total $ (48,370) $ (18,439) $ (203,121) $ 40,300 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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, 2021 and December 31, 2020 (in thousands). Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ (77,054) $ — $ (77,054) Natural gas derivatives — (36,013) — (36,013) Total $ — $ (113,067) $ — $ (113,067) Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ (41,584) $ — $ (41,584) Natural gas derivatives — 5,695 — 5,695 Total $ — $ (35,889) $ — $ (35,889) Additional disclosures related to derivative financial instruments are provided in Note 7. Other Fair Value Measurements At September 30, 2021 and December 31, 2020, the carrying values reported on the interim unaudited condensed consolidated balance sheets for accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, royalties payable, amounts due to affiliates, advances from joint interest owners and other current liabilities approximated their fair values due to their short-term maturities. At September 30, 2021 and December 31, 2020, 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Processing, Transportation and Produced 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 produced water from certain portions of its acreage for transportation, gathering, processing, fractionation, sales and disposal. The Company paid approximately $13.4 million and $12.0 million for deliveries under these agreements during the three months ended September 30, 2021 and 2020, respectively, and $41.1 million and $34.4 million for deliveries under these agreements during the nine months ended September 30, 2021 and 2020, 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, 2021, the total deficiencies required to be paid by the Company under these agreements would be approximately $583.0 million. Future Commitments The Company entered into a 10-year, fixed-fee natural gas transportation agreement whereby the Company committed to deliver a portion of the residue gas production at the tailgate of San Mateo’s cryogenic natural gas processing plant in Eddy County, New Mexico for transportation through the counterparty’s pipeline. The agreement begins when the counterparty’s pipeline is placed in service, which is anticipated to be in the fourth quarter of 2021. Should the pipeline be placed in service, the Company would 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 $30.7 million. San Mateo Commitments The Company dedicated to San Mateo its current and certain future leasehold interests in the Rustler Breaks and Wolf asset areas and acreage in the southern portion of the Arrowhead asset area (the “Greater Stebbins Area”) and the Stateline asset area pursuant to 15-year, fixed-fee oil transportation, oil, natural gas and produced water gathering and produced water disposal agreements. In addition, the Company dedicated to San Mateo its current and certain future leasehold interests in the Rustler Breaks asset area and acreage in the Greater Stebbins Area and the Stateline asset area pursuant to 15-year, fixed-fee natural gas processing agreements (collectively with the transportation, gathering and produced water disposal agreements, the “Operational Agreements”). San Mateo provides the Company with firm service under each of the Operational Agreements in exchange for certain minimum volume commitments. The remaining minimum contractual obligation under the Operational Agreements at September 30, 2021 was approximately $399.9 million. 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, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
SUPPLEMENTAL DISCLOSURES | SUPPLEMENTAL DISCLOSURES Accrued Liabilities The following table summarizes the Company’s current accrued liabilities at September 30, 2021 and December 31, 2020 (in thousands). September 30, December 31, Accrued evaluated and unproved and unevaluated property costs $ 77,708 $ 44,012 Accrued midstream properties costs 18,625 12,776 Accrued lease operating expenses 33,055 24,276 Accrued interest on debt 2,929 18,315 Accrued asset retirement obligations 231 623 Accrued partners’ share of joint interest charges 7,986 7,407 Accrued payable related to purchased natural gas 11,361 418 Other 23,739 11,331 Total accrued liabilities $ 175,634 $ 119,158 Supplemental Cash Flow Information The following table provides supplemental disclosures of cash flow information for the nine months ended September 30, 2021 and 2020 (in thousands). Nine Months Ended 2021 2020 Cash paid for interest expense, net of amounts capitalized $ 51,468 $ 71,890 Increase (decrease) in asset retirement obligations related to mineral properties $ 157 $ (232) Increase in asset retirement obligations related to midstream properties $ 104 $ 472 Increase (decrease) in liabilities for drilling, completion and equipping capital expenditures $ 29,256 $ (16,333) Increase (decrease) in liabilities for acquisition of oil and natural gas properties $ 3,299 $ (2,377) Increase (decrease) in liabilities for midstream properties capital expenditures $ 5,874 $ (10,653) Stock-based compensation expense recognized as a liability $ 20,535 $ 1,434 Transfer of inventory to oil and natural gas properties $ (625) $ (445) 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 2021 2020 Cash $ 73,128 $ 41,813 Restricted cash 34,663 26,090 Total cash and restricted cash $ 107,791 $ 67,903 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 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 produced water gathering services and produced water disposal services to third parties. Substantially all of the Company’s midstream operations in the Rustler Breaks, Wolf and Stateline asset areas and the Greater Stebbins Area in the Delaware Basin, which comprise most of the Company’s midstream operations, are conducted through San Mateo. San Mateo and its subsidiaries are not guarantors of the Notes. 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, 2021 Oil and natural gas revenues $ 460,306 $ 1,159 $ — $ — $ 461,465 Midstream services revenues — 61,215 — (40,729) 20,486 Sales of purchased natural gas 25,961 12,809 — — 38,770 Realized loss on derivatives (57,419) — — — (57,419) Unrealized gain on derivatives 9,049 — — — 9,049 Expenses (1) 220,535 40,784 21,575 (40,729) 242,165 Operating income (2) $ 217,362 $ 34,399 $ (21,575) $ — $ 230,186 Total assets $ 3,025,668 $ 864,020 $ 95,805 $ — $ 3,985,493 Capital expenditures (3) $ 138,374 $ 28,948 $ 220 $ — $ 167,542 _____________________ (1) Includes depletion, depreciation and amortization expenses of $80.6 million and $7.8 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.6 million. (2) Includes $14.4 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $17.2 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $14.2 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, 2020 Oil and natural gas revenues $ 188,492 $ 612 $ — $ — $ 189,104 Midstream services revenues — 40,829 — (21,466) 19,363 Sales of purchased natural gas 7,480 5,878 — — 13,358 Realized loss on derivatives (5,406) — — — (5,406) Unrealized loss on derivatives (13,033) — — — (13,033) Expenses (1) 409,282 24,524 12,187 (21,466) 424,527 Operating (loss) income (2) $ (231,749) $ 22,795 $ (12,187) $ — $ (221,141) Total assets $ 2,913,409 $ 819,954 $ 52,867 $ — $ 3,786,230 Capital expenditures (3) $ 106,160 $ 55,032 $ 415 $ — $ 161,607 _____________________ (1) Includes depletion, depreciation and amortization expenses of $81.3 million and $6.0 million for the exploration and production and midstream segments, respectively. Includes full-cost ceiling impairment of $251.2 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $0.7 million. (2) Includes $10.0 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $13.7 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $26.6 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, 2021 Oil and natural gas revenues $ 1,186,086 $ 3,686 $ — $ — $ 1,189,772 Midstream services revenues — 164,815 — (109,041) 55,774 Sales of purchased natural gas 32,543 21,655 — — 54,198 Realized loss on derivatives (125,943) — — — (125,943) Unrealized loss on derivatives (77,178) — — — (77,178) Expenses (1) 576,106 97,305 64,298 (109,041) 628,668 Operating income (2) $ 439,402 $ 92,851 $ (64,298) $ — $ 467,955 Total assets $ 3,025,668 $ 864,020 $ 95,805 $ — $ 3,985,493 Capital expenditures (3) $ 381,167 $ 46,584 $ 465 $ — $ 428,216 _____________________ (1) Includes depletion, depreciation and amortization expenses of $230.0 million and $23.4 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $2.0 million. (2) Includes $39.2 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $32.8 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $22.4 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, 2020 Oil and natural gas revenues $ 503,545 $ 2,240 $ — $ — $ 505,785 Midstream services revenues — 114,812 — (64,951) 49,861 Sales of purchased natural gas 19,402 18,481 — — 37,883 Lease bonus - mineral acreage 4,062 — — — 4,062 Realized gain on derivatives 49,571 — — — 49,571 Unrealized loss on derivatives (9,271) — — — (9,271) Expenses (1) 1,054,419 72,429 38,913 (64,951) 1,100,810 Operating (loss) income (2) $ (487,110) $ 63,104 $ (38,913) $ — $ (462,919) Total assets $ 2,913,409 $ 819,954 $ 52,867 $ — $ 3,786,230 Capital expenditures (3) $ 446,604 $ 187,761 $ 1,796 $ — $ 636,161 _____________________ (1) Includes depletion, depreciation and amortization expenses of $254.2 million and $15.8 million for the exploration and production and midstream segments, respectively. Includes full-cost ceiling impairment of $575.2 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $2.1 million. (2) Includes $26.8 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $63.0 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $106.0 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020 filed with the SEC on February 26, 2021 (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, 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, 2021. Amounts as of December 31, 2020 are derived from the Company’s audited consolidated financial statements included in the Annual Report. 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. |
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 the three and nine months ended September 30, 2021, 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. At September 30, 2020, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $189.1 million. As a result, the Company recorded an impairment charge of $251.2 million to its net capitalized costs and a deferred income tax benefit of $62.1 million at September 30, 2020. At June 30, 2020, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $243.9 million. As a result, the Company recorded an impairment charge of $324.0 million to its net capitalized costs and a deferred income tax benefit of $80.1 million at June 30, 2020. These charges are reflected in the Company’s interim condensed consolidated statements of operations for the three and nine months ended September 30, 2020. |
Earnings 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. |
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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 and 2020 (in thousands). Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenues from contracts with customers $ 520,721 $ 221,825 $ 1,299,744 $ 593,529 Lease bonus - mineral acreage — — — 4,062 Realized (loss) gain on derivatives (57,419) (5,406) (125,943) 49,571 Unrealized gain (loss) on derivatives 9,049 (13,033) (77,178) (9,271) Total revenues $ 472,351 $ 203,386 $ 1,096,623 $ 637,891 Three Months Ended Nine Months Ended 2021 2020 2021 2020 Oil revenues $ 325,560 $ 150,620 $ 853,953 $ 414,379 Natural gas revenues 135,905 38,484 335,819 91,406 Third-party midstream services revenues 20,486 19,363 55,774 49,861 Sales of purchased natural gas 38,770 13,358 54,198 37,883 Total revenues from contracts with customers $ 520,721 $ 221,825 $ 1,299,744 $ 593,529 |
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, 2021 and 2020 (in thousands). Three Months Ended Nine Months Ended 2021 2020 2021 2020 Weighted average common shares outstanding Basic 117,008 116,155 116,872 116,036 Dilutive effect of options and restricted stock units 2,189 — 1,916 — Diluted weighted average common shares outstanding 119,197 116,155 118,788 116,036 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 (in thousands). Beginning asset retirement obligations $ 38,542 Liabilities incurred during period 1,066 Liabilities settled during period (96) Divestitures during period (709) Accretion expense 1,529 Ending asset retirement obligations 40,332 Less: current asset retirement obligations (1) (231) Long-term asset retirement obligations $ 40,101 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at September 30, 2021. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of contracts for oil and natural gas | The following is a summary of the Company’s open costless collar contracts for oil and natural gas at September 30, 2021. Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or $/MMBtu) Weighted Average Price Ceiling ($/Bbl or $/MMBtu) Fair Value of Oil 10/01/2021 - 12/31/2021 2,370,000 $ 42.06 $ 55.15 $ (46,669) Natural Gas 10/01/2021 - 12/31/2021 13,900,000 $ 2.53 $ 4.71 (24,169) Oil 01/01/2022 - 12/31/2022 2,040,000 $ 50.00 $ 67.85 (14,402) Natural Gas 01/01/2022 - 03/31/2022 8,250,000 $ 2.70 $ 6.33 (11,844) Total open costless collar contracts $ (97,084) The following is a summary of the Company’s open swap contracts for oil at September 30, 2021. Commodity Calculation Period Notional Quantity (Bbl) Fixed Price Fair Value of Oil 10/01/2021 - 12/31/2021 510,000 $ 35.26 $ (19,999) Total open swap contracts $ (19,999) The following is a summary of the Company’s open basis swap contracts for oil at September 30, 2021. Commodity Calculation Period Notional Quantity (Bbl) Fixed Price Fair Value of Oil Basis 10/01/2021 - 12/31/2021 2,100,000 $ 0.87 $ 623 Oil Basis 01/01/2022 - 12/31/2022 5,520,000 $ 0.95 3,393 Total open basis swap contracts $ 4,016 |
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, 2021 and December 31, 2020 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed September 30, 2021 Current assets $ 303,891 $ (300,734) $ 3,157 Other assets 56,035 (55,176) 859 Current liabilities (414,887) 300,734 (114,153) Long-term liabilities (58,106) 55,176 (2,930) Total $ (113,067) $ — $ (113,067) December 31, 2020 Current assets $ 382,328 $ (375,601) $ 6,727 Other assets 150,194 (147,624) 2,570 Current liabilities (420,787) 375,601 (45,186) Long-term liabilities (147,624) 147,624 — Total $ (35,889) $ — $ (35,889) |
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 2021 2020 2021 2020 Derivative Instrument Oil Revenues: Realized (loss) gain on derivatives $ (52,774) $ (5,406) $ (121,460) $ 49,571 Natural Gas Revenues: Realized loss on derivatives (4,645) — (4,483) — Realized (loss) gain on derivatives (57,419) (5,406) (125,943) 49,571 Oil Revenues: Unrealized gain (loss) on derivatives 38,961 (9,843) (35,471) (7,980) Natural Gas Revenues: Unrealized loss on derivatives (29,912) (3,190) (41,707) (1,291) Unrealized gain (loss) on derivatives 9,049 (13,033) (77,178) (9,271) Total $ (48,370) $ (18,439) $ (203,121) $ 40,300 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of the valuation of the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis | The following tables summarize the valuation of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis in accordance with the classifications provided above as of September 30, 2021 and December 31, 2020 (in thousands). Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ (77,054) $ — $ (77,054) Natural gas derivatives — (36,013) — (36,013) Total $ — $ (113,067) $ — $ (113,067) Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ (41,584) $ — $ (41,584) Natural gas derivatives — 5,695 — 5,695 Total $ — $ (35,889) $ — $ (35,889) |
SUPPLEMENTAL DISCLOSURES (Table
SUPPLEMENTAL DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Summary of current accrued liabilities | The following table summarizes the Company’s current accrued liabilities at September 30, 2021 and December 31, 2020 (in thousands). September 30, December 31, Accrued evaluated and unproved and unevaluated property costs $ 77,708 $ 44,012 Accrued midstream properties costs 18,625 12,776 Accrued lease operating expenses 33,055 24,276 Accrued interest on debt 2,929 18,315 Accrued asset retirement obligations 231 623 Accrued partners’ share of joint interest charges 7,986 7,407 Accrued payable related to purchased natural gas 11,361 418 Other 23,739 11,331 Total accrued liabilities $ 175,634 $ 119,158 |
Supplemental disclosures of cash flow information | The following table provides supplemental disclosures of cash flow information for the nine months ended September 30, 2021 and 2020 (in thousands). Nine Months Ended 2021 2020 Cash paid for interest expense, net of amounts capitalized $ 51,468 $ 71,890 Increase (decrease) in asset retirement obligations related to mineral properties $ 157 $ (232) Increase in asset retirement obligations related to midstream properties $ 104 $ 472 Increase (decrease) in liabilities for drilling, completion and equipping capital expenditures $ 29,256 $ (16,333) Increase (decrease) in liabilities for acquisition of oil and natural gas properties $ 3,299 $ (2,377) Increase (decrease) in liabilities for midstream properties capital expenditures $ 5,874 $ (10,653) Stock-based compensation expense recognized as a liability $ 20,535 $ 1,434 Transfer of inventory to oil and natural gas properties $ (625) $ (445) 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 2021 2020 Cash $ 73,128 $ 41,813 Restricted cash 34,663 26,090 Total cash and restricted cash $ 107,791 $ 67,903 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 Oil and natural gas revenues $ 460,306 $ 1,159 $ — $ — $ 461,465 Midstream services revenues — 61,215 — (40,729) 20,486 Sales of purchased natural gas 25,961 12,809 — — 38,770 Realized loss on derivatives (57,419) — — — (57,419) Unrealized gain on derivatives 9,049 — — — 9,049 Expenses (1) 220,535 40,784 21,575 (40,729) 242,165 Operating income (2) $ 217,362 $ 34,399 $ (21,575) $ — $ 230,186 Total assets $ 3,025,668 $ 864,020 $ 95,805 $ — $ 3,985,493 Capital expenditures (3) $ 138,374 $ 28,948 $ 220 $ — $ 167,542 _____________________ (1) Includes depletion, depreciation and amortization expenses of $80.6 million and $7.8 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.6 million. (2) Includes $14.4 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $17.2 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $14.2 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, 2020 Oil and natural gas revenues $ 188,492 $ 612 $ — $ — $ 189,104 Midstream services revenues — 40,829 — (21,466) 19,363 Sales of purchased natural gas 7,480 5,878 — — 13,358 Realized loss on derivatives (5,406) — — — (5,406) Unrealized loss on derivatives (13,033) — — — (13,033) Expenses (1) 409,282 24,524 12,187 (21,466) 424,527 Operating (loss) income (2) $ (231,749) $ 22,795 $ (12,187) $ — $ (221,141) Total assets $ 2,913,409 $ 819,954 $ 52,867 $ — $ 3,786,230 Capital expenditures (3) $ 106,160 $ 55,032 $ 415 $ — $ 161,607 _____________________ (1) Includes depletion, depreciation and amortization expenses of $81.3 million and $6.0 million for the exploration and production and midstream segments, respectively. Includes full-cost ceiling impairment of $251.2 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $0.7 million. (2) Includes $10.0 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $13.7 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $26.6 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, 2021 Oil and natural gas revenues $ 1,186,086 $ 3,686 $ — $ — $ 1,189,772 Midstream services revenues — 164,815 — (109,041) 55,774 Sales of purchased natural gas 32,543 21,655 — — 54,198 Realized loss on derivatives (125,943) — — — (125,943) Unrealized loss on derivatives (77,178) — — — (77,178) Expenses (1) 576,106 97,305 64,298 (109,041) 628,668 Operating income (2) $ 439,402 $ 92,851 $ (64,298) $ — $ 467,955 Total assets $ 3,025,668 $ 864,020 $ 95,805 $ — $ 3,985,493 Capital expenditures (3) $ 381,167 $ 46,584 $ 465 $ — $ 428,216 _____________________ (1) Includes depletion, depreciation and amortization expenses of $230.0 million and $23.4 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $2.0 million. (2) Includes $39.2 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $32.8 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $22.4 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, 2020 Oil and natural gas revenues $ 503,545 $ 2,240 $ — $ — $ 505,785 Midstream services revenues — 114,812 — (64,951) 49,861 Sales of purchased natural gas 19,402 18,481 — — 37,883 Lease bonus - mineral acreage 4,062 — — — 4,062 Realized gain on derivatives 49,571 — — — 49,571 Unrealized loss on derivatives (9,271) — — — (9,271) Expenses (1) 1,054,419 72,429 38,913 (64,951) 1,100,810 Operating (loss) income (2) $ (487,110) $ 63,104 $ (38,913) $ — $ (462,919) Total assets $ 2,913,409 $ 819,954 $ 52,867 $ — $ 3,786,230 Capital expenditures (3) $ 446,604 $ 187,761 $ 1,796 $ — $ 636,161 _____________________ (1) Includes depletion, depreciation and amortization expenses of $254.2 million and $15.8 million for the exploration and production and midstream segments, respectively. Includes full-cost ceiling impairment of $575.2 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $2.1 million. (2) Includes $26.8 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $63.0 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $106.0 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 520,721 | $ 221,825 | $ 1,299,744 | $ 593,529 |
Lease bonus - mineral acreage | 0 | 0 | 0 | 4,062 |
Realized (loss) gain on derivatives | (57,419) | (5,406) | (125,943) | 49,571 |
Unrealized gain (loss) on derivatives | 9,049 | (13,033) | (77,178) | (9,271) |
Total revenues | 472,351 | 203,386 | 1,096,623 | 637,891 |
Oil revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 325,560 | 150,620 | 853,953 | 414,379 |
Natural gas revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 135,905 | 38,484 | 335,819 | 91,406 |
Third-party midstream services revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 20,486 | 19,363 | 55,774 | 49,861 |
Sales of purchased natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 38,770 | $ 13,358 | $ 54,198 | $ 37,883 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Discount rate, present value of future revenue | 10.00% | |||||
Amount exceeding full-cost ceiling | $ 189,100 | $ 243,900 | $ 189,100 | $ 189,100 | ||
Full-cost ceiling impairment | 251,200 | 324,000 | $ 0 | 251,163 | $ 0 | 575,164 |
Deferred income tax benefit | $ 62,100 | $ 80,100 | 6,701 | (26,497) | (1,488) | 43,369 |
Capitalized general and administrative costs | 9,900 | 7,600 | 28,600 | 23,900 | ||
Interest costs capitalized | $ 1,500 | $ 2,000 | $ 3,900 | $ 5,200 | ||
Options | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Antidilutive securities (in shares) | 2.5 | 1.3 | ||||
Restricted Stock | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Antidilutive securities (in shares) | 0.7 | 0.6 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliations of Basic and Diluted Distributed and Undistributed Earnings (Loss) Per Common Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Weighted average common shares outstanding | ||||
Basic (in shares) | 117,008 | 116,155 | 116,872 | 116,036 |
Dilutive effect of options and restricted stock units (in shares) | 2,189 | 0 | 1,916 | 0 |
Diluted weighted average common shares outstanding (in shares) | 119,197 | 116,155 | 118,788 | 116,036 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||
Changes in the Company's asset retirement obligations | ||||||
Beginning asset retirement obligations | $ 38,542 | |||||
Liabilities incurred during period | 1,066 | |||||
Liabilities settled during period | (96) | |||||
Divestitures during period | (709) | |||||
Accretion expense | $ 518 | $ 478 | 1,529 | $ 1,449 | ||
Ending asset retirement obligations | 40,332 | 40,332 | ||||
Less: current asset retirement obligations | [1] | (231) | (231) | |||
Long-term asset retirement obligations | $ 40,101 | $ 40,101 | $ 37,919 | |||
[1] | Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at September 30, 2021. |
DEBT - Borrowings (Details)
DEBT - Borrowings (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Oct. 26, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | |||
Line of credit facility | $ 120,000 | $ 440,000 | |
Borrowings under San Mateo Credit Facility | 357,500 | $ 334,000 | |
Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility | 120,000 | ||
Unsecured Debt | Senior Notes Due 2026 | |||
Line of Credit Facility [Line Items] | |||
Long-term debt outstanding | 1,050,000 | ||
Unsecured Debt | SBA Loan, CARES Act | |||
Line of Credit Facility [Line Items] | |||
Long-term debt outstanding | 7,500 | ||
Letter of Credit | Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Outstanding letters of credit | 45,800 | ||
Letter of Credit | Credit Agreement | Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Repayments of debt | $ 20,000 | ||
Line of Credit | San Mateo Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Borrowings under San Mateo Credit Facility | 357,500 | ||
Outstanding letters of credit | $ 9,000 | ||
Line of Credit | San Mateo Credit Facility | Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Repayments of debt | $ 10,000 |
DEBT - Credit Agreements (Detai
DEBT - Credit Agreements (Details) | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Jun. 29, 2021USD ($) | Apr. 30, 2021USD ($) | |
Revolving Credit Facility | Third Amended Credit Agreement | |||
Debt Instrument [Line Items] | |||
Increase in borrowing base | $ 900,000,000 | ||
Maximum borrowing commitment | 700,000,000 | ||
Maximum facility amount | $ 1,500,000,000 | ||
Cash and cash equivalent limit | $ 50,000,000 | ||
EBITDA ratio | 4 | ||
Line of Credit | San Mateo Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing commitment | $ 450,000,000 | $ 375,000,000 | |
Interest rate increase (decrease) | 0.50% | ||
Line of credit, accordian feature (up to) | $ 700,000,000 | ||
EBITDA ratio | 5 | ||
Consolidated interest expense, minimum | 2.5 | ||
Liquidity restriction on cash distribution, percentage of lender commitments, less than | 10.00% |
DEBT - Senior Unsecured Notes (
DEBT - Senior Unsecured Notes (Details) - Senior Notes $ in Millions | Sep. 30, 2021USD ($) |
Senior Notes Due 2026 | |
Debt Instrument [Line Items] | |
Long-term debt outstanding | $ 1,050 |
2026 Notes Offering | |
Debt Instrument [Line Items] | |
Interest rate | 5.875% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) provision | $ (6,701) | $ 26,497 | $ 1,488 | $ (43,369) |
EQUITY (Details)
EQUITY (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Oct. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Dividends declared (in dollars per share) | $ 0.025 | $ 0.025 | $ 0.025 | ||||||
Cash dividend | $ 2,915,000 | $ 2,913,000 | $ 2,913,000 | ||||||
Distributions | 16,905,000 | $ 14,700,000 | $ 14,210,000 | $ 10,780,000 | $ 10,535,000 | $ 11,515,000 | |||
Service-Based Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted in period (in shares) | 334,649 | ||||||||
Vesting period | 3 years | ||||||||
Performance-Based Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted in period (in shares) | 366,500 | ||||||||
Vesting period | 3 years | ||||||||
Performance-Based Stock Units | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting amount, percentage | 0.00% | ||||||||
Performance-Based Stock Units | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting amount, percentage | 200.00% | ||||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted in period (in shares) | 334,876 | ||||||||
Service-based Restricted Stock Units And Performance-Based Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant date fair value | $ 43,300,000 | ||||||||
Subsequent Event | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Dividends declared (in dollars per share) | $ 0.05 | ||||||||
San Mateo | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Equity contribution, tax impact | $ 1,300,000 | $ 3,100,000 | |||||||
Performance incentives earned | 6,000,000 | 0 | 37,600,000 | 14,700,000 | |||||
Matador Resources Company | San Mateo | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Distributions | 17,600,000 | 11,200,000 | 47,700,000 | 34,200,000 | |||||
Five Point | San Mateo | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Distributions | 16,900,000 | 10,800,000 | 45,800,000 | 32,800,000 | |||||
San Mateo II | Matador Resources Company | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contributions to related party | 0 | 36,800,000 | 0 | 59,700,000 | |||||
San Mateo II | Five Point | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contributions to related party | $ 0 | $ 31,900,000 | $ 0 | 99,000,000 | |||||
Equity contribution, tax impact | 4,800,000 | ||||||||
San Mateo II | Five Point | Matador's Proportionate Interest in San Mateo | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contributions to related party | $ 23,100,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Contracts for Oil and Natural Gas (Details) | Sep. 30, 2021USD ($)bbl$ / bbl |
Open costless collar contracts | |
Summary of contracts for oil and natural gas | |
Fair Value of Asset (Liability) | $ | $ (97,084,000) |
Open Swap Contracts | |
Summary of contracts for oil and natural gas | |
Fair Value of Asset (Liability) | $ | (19,999,000) |
Open Basis Swap Contracts | |
Summary of contracts for oil and natural gas | |
Fair Value of Asset (Liability) | $ | $ 4,016,000 |
Derivative Contract, Calculation Period One | Open costless collar contracts | Oil | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 2,370,000 |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 42.06 |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 55.15 |
Fair Value of Asset (Liability) | $ | $ (46,669,000) |
Derivative Contract, Calculation Period One | Open costless collar contracts | Natural Gas | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 13,900,000 |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 2.53 |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 4.71 |
Fair Value of Asset (Liability) | $ | $ (24,169,000) |
Derivative Contract, Calculation Period One | Open Swap Contracts | Oil | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 510,000 |
Fair Value of Asset (Liability) | $ | $ (19,999,000) |
Fixed Price ($/Bbl) | 35.26 |
Derivative Contract, Calculation Period One | Open Basis Swap Contracts | Oil Basis | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 2,100,000 |
Fair Value of Asset (Liability) | $ | $ 623,000 |
Fixed Price ($/Bbl) | 0.87 |
Derivative Contract, Calculation Period Two | Open costless collar contracts | Natural Gas | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 8,250,000 |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 2.70 |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 6.33 |
Fair Value of Asset (Liability) | $ | $ (11,844,000) |
Derivative Contract, Calculation Period Three | Open costless collar contracts | Oil | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 2,040,000 |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 50 |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 67.85 |
Fair Value of Asset (Liability) | $ | $ (14,402,000) |
Derivative Contract, Calculation Period Three | Open Basis Swap Contracts | Oil Basis | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 5,520,000 |
Fair Value of Asset (Liability) | $ | $ 3,393,000 |
Fixed Price ($/Bbl) | 0.95 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative liability | $ 113,067 | $ 35,889 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Gross Asset Balances of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Liability Balances of Derivative Instruments | ||
Total | $ (113,067) | $ (35,889) |
Total, Gross amounts netted in the condensed consolidated balance sheets | 0 | 0 |
Total, Net amounts presented in the condensed consolidated balance sheets | (113,067) | (35,889) |
Current assets | ||
Asset Balances of Derivative Insruments | ||
Gross amounts recognized | 303,891 | 382,328 |
Gross amounts netted in the condensed consolidated balance sheets | (300,734) | (375,601) |
Net amounts presented in the condensed consolidated balance sheets | 3,157 | 6,727 |
Other assets | ||
Asset Balances of Derivative Insruments | ||
Gross amounts recognized | 56,035 | 150,194 |
Gross amounts netted in the condensed consolidated balance sheets | (55,176) | (147,624) |
Net amounts presented in the condensed consolidated balance sheets | 859 | 2,570 |
Current liabilities | ||
Liability Balances of Derivative Instruments | ||
Gross amounts recognized | (414,887) | (420,787) |
Gross amounts netted in the condensed consolidated balance sheets | 300,734 | 375,601 |
Net amounts presented in the condensed consolidated balance sheets | (114,153) | (45,186) |
Long-term liabilities | ||
Liability Balances of Derivative Instruments | ||
Gross amounts recognized | (58,106) | (147,624) |
Gross amounts netted in the condensed consolidated balance sheets | 55,176 | 147,624 |
Net amounts presented in the condensed consolidated balance sheets | $ (2,930) | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Location and Aggregate Fair Value of All Derivative Financial Instruments Recorded in the Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instrument | ||||
Realized (loss) gain on derivatives | $ (57,419) | $ (5,406) | $ (125,943) | $ 49,571 |
Unrealized gain (loss) on derivatives | 9,049 | (13,033) | (77,178) | (9,271) |
Total | (48,370) | (18,439) | (203,121) | 40,300 |
Revenues | ||||
Derivative Instrument | ||||
Realized (loss) gain on derivatives | (57,419) | (5,406) | (125,943) | 49,571 |
Unrealized gain (loss) on derivatives | 9,049 | (13,033) | (77,178) | (9,271) |
Oil | Revenues | ||||
Derivative Instrument | ||||
Realized (loss) gain on derivatives | (52,774) | (5,406) | (121,460) | 49,571 |
Unrealized gain (loss) on derivatives | 38,961 | (9,843) | (35,471) | (7,980) |
Natural Gas | Revenues | ||||
Derivative Instrument | ||||
Realized (loss) gain on derivatives | (4,645) | 0 | (4,483) | 0 |
Unrealized gain (loss) on derivatives | $ (29,912) | $ (3,190) | $ (41,707) | $ (1,291) |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of the Valuation of the Company's Financial Assets and Liabilities that were Accounted for at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets (Liabilities) | ||
Total | $ (113,067) | $ (35,889) |
Fair value on a recurring basis | ||
Assets (Liabilities) | ||
Total | (113,067) | (35,889) |
Fair value on a recurring basis | Oil derivatives and basis swaps | ||
Assets (Liabilities) | ||
Derivative liability | (77,054) | (41,584) |
Fair value on a recurring basis | Natural gas derivatives | ||
Assets (Liabilities) | ||
Derivative liability | (36,013) | |
Derivative asset | 5,695 | |
Fair value on a recurring basis | Level 1 | ||
Assets (Liabilities) | ||
Total | 0 | 0 |
Fair value on a recurring basis | Level 1 | Oil derivatives and basis swaps | ||
Assets (Liabilities) | ||
Derivative liability | 0 | 0 |
Fair value on a recurring basis | Level 1 | Natural gas derivatives | ||
Assets (Liabilities) | ||
Derivative liability | 0 | |
Derivative asset | 0 | |
Fair value on a recurring basis | Level 2 | ||
Assets (Liabilities) | ||
Total | (113,067) | (35,889) |
Fair value on a recurring basis | Level 2 | Oil derivatives and basis swaps | ||
Assets (Liabilities) | ||
Derivative liability | (77,054) | (41,584) |
Fair value on a recurring basis | Level 2 | Natural gas derivatives | ||
Assets (Liabilities) | ||
Derivative liability | (36,013) | |
Derivative asset | 5,695 | |
Fair value on a recurring basis | Level 3 | ||
Assets (Liabilities) | ||
Total | 0 | 0 |
Fair value on a recurring basis | Level 3 | Oil derivatives and basis swaps | ||
Assets (Liabilities) | ||
Derivative liability | 0 | 0 |
Fair value on a recurring basis | Level 3 | Natural gas derivatives | ||
Assets (Liabilities) | ||
Derivative liability | $ 0 | |
Derivative asset | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Senior Notes Due 2023 | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of notes | $ 1,090 | $ 1,030 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | Feb. 17, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Delivery Of Natural Gas And Oil Production To Third Parties | |||||
Long-term Purchase Commitment [Line Items] | |||||
Payment for volume requirement agreement | $ 13.4 | $ 12 | $ 41.1 | $ 34.4 | |
Volume requirement commitment | 583 | $ 583 | |||
Delivery Of Residue Gas Production | |||||
Long-term Purchase Commitment [Line Items] | |||||
Term of contractual obligation | 10 years | ||||
Contractual obligation | 30.7 | $ 30.7 | |||
Rustler Breaks and Wolf Asset Area | Corporate Joint Venture | San Mateo Midstream | |||||
Long-term Purchase Commitment [Line Items] | |||||
Term of contractual obligation | 15 years | ||||
Rustler Breaks Asset Area | Corporate Joint Venture | San Mateo Midstream | |||||
Long-term Purchase Commitment [Line Items] | |||||
Term of contractual obligation | 15 years | ||||
Operational Agreements | San Mateo Midstream | |||||
Long-term Purchase Commitment [Line Items] | |||||
Contractual obligation | $ 399.9 | $ 399.9 |
SUPPLEMENTAL DISCLOSURES - Summ
SUPPLEMENTAL DISCLOSURES - Summary of Current Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | $ 175,634 | $ 119,158 |
Accrued evaluated and unproved and unevaluated property costs | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 77,708 | 44,012 |
Accrued midstream properties costs | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 18,625 | 12,776 |
Accrued lease operating expenses | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 33,055 | 24,276 |
Accrued interest on debt | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 2,929 | 18,315 |
Accrued asset retirement obligations | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 231 | 623 |
Accrued partners’ share of joint interest charges | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 7,986 | 7,407 |
Accrued payable related to purchased natural gas | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | 11,361 | 418 |
Other | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total accrued liabilities | $ 23,739 | $ 11,331 |
SUPPLEMENTAL DISCLOSURES - Supp
SUPPLEMENTAL DISCLOSURES - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash paid for interest expense, net of amounts capitalized | $ 51,468 | $ 71,890 |
Increase (decrease) in liabilities for drilling, completion and equipping capital expenditures | 29,256 | (16,333) |
Increase (decrease) in liabilities for acquisition of oil and natural gas properties | 3,299 | (2,377) |
Increase (decrease) in liabilities for midstream properties capital expenditures | 5,874 | (10,653) |
Stock-based compensation expense recognized as a liability | 20,535 | 1,434 |
Transfer of inventory to oil and natural gas properties | (625) | (445) |
Mineral Properties | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Increase in asset retirement obligations | 157 | (232) |
Midstream Properties | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Increase in asset retirement obligations | $ 104 | $ 472 |
SUPPLEMENTAL DISCLOSURES - Rest
SUPPLEMENTAL DISCLOSURES - Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure Text Block Supplement [Abstract] | ||||
Cash | $ 73,128 | $ 57,916 | $ 41,813 | |
Restricted cash | 34,663 | 33,467 | 26,090 | |
Total cash and restricted cash | $ 107,791 | $ 91,383 | $ 67,903 | $ 65,128 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
SEGMENT INFORMATION - Selected
SEGMENT INFORMATION - Selected Financial Information for Segments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 520,721 | $ 221,825 | $ 1,299,744 | $ 593,529 | |||
Lease bonus - mineral acreage | 0 | 0 | 0 | 4,062 | |||
Realized (loss) gain on derivatives | (57,419) | (5,406) | (125,943) | 49,571 | |||
Unrealized gain (loss) on derivatives | 9,049 | (13,033) | (77,178) | (9,271) | |||
Expenses | 242,165 | 424,527 | 628,668 | 1,100,810 | |||
Operating (loss) income | 230,186 | (221,141) | 467,955 | (462,919) | |||
Total assets | $ 3,786,230 | 3,985,493 | 3,786,230 | 3,985,493 | 3,786,230 | $ 3,687,280 | |
Capital expenditures | 167,542 | 161,607 | 428,216 | 636,161 | |||
Depletion, depreciation and amortization | 89,061 | 88,025 | 255,368 | 272,082 | |||
Full-cost ceiling impairment | 251,200 | $ 324,000 | 0 | 251,163 | 0 | 575,164 | |
Corporate | |||||||
Segment Reporting Information [Line Items] | |||||||
Lease bonus - mineral acreage | 0 | ||||||
Realized (loss) gain on derivatives | 0 | 0 | 0 | 0 | |||
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |||
Expenses | 21,575 | 12,187 | 64,298 | 38,913 | |||
Operating (loss) income | (21,575) | (12,187) | (64,298) | (38,913) | |||
Total assets | 52,867 | 95,805 | 52,867 | 95,805 | 52,867 | ||
Capital expenditures | 220 | 415 | 465 | 1,796 | |||
Depletion, depreciation and amortization | 600 | 700 | 2,000 | 2,100 | |||
Consolidations and Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Lease bonus - mineral acreage | 0 | ||||||
Realized (loss) gain on derivatives | 0 | 0 | 0 | 0 | |||
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |||
Expenses | (40,729) | (21,466) | (109,041) | (64,951) | |||
Operating (loss) income | 0 | 0 | 0 | 0 | |||
Total assets | 0 | 0 | 0 | 0 | 0 | ||
Capital expenditures | 0 | 0 | 0 | 0 | |||
Exploration and Production | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Lease bonus - mineral acreage | 4,062 | ||||||
Realized (loss) gain on derivatives | (57,419) | (5,406) | (125,943) | 49,571 | |||
Unrealized gain (loss) on derivatives | 9,049 | (13,033) | (77,178) | (9,271) | |||
Expenses | 220,535 | 409,282 | 576,106 | 1,054,419 | |||
Operating (loss) income | 217,362 | (231,749) | 439,402 | (487,110) | |||
Total assets | 2,913,409 | 3,025,668 | 2,913,409 | 3,025,668 | 2,913,409 | ||
Capital expenditures | 138,374 | 106,160 | 381,167 | 446,604 | |||
Depletion, depreciation and amortization | 80,600 | 81,300 | 230,000 | 254,200 | |||
Capital expenditures attributable to land and seismic acquisition expenditures | 17,200 | 13,700 | 32,800 | 63,000 | |||
Midstream | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Lease bonus - mineral acreage | 0 | ||||||
Realized (loss) gain on derivatives | 0 | 0 | 0 | 0 | |||
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |||
Expenses | 40,784 | 24,524 | 97,305 | 72,429 | |||
Operating (loss) income | 34,399 | 22,795 | 92,851 | 63,104 | |||
Total assets | $ 819,954 | 864,020 | 819,954 | 864,020 | 819,954 | ||
Capital expenditures | 28,948 | 55,032 | 46,584 | 187,761 | |||
Depletion, depreciation and amortization | 7,800 | 6,000 | 23,400 | 15,800 | |||
Net income attributable to non-controlling interest in subsidiaries | (10,000) | (39,200) | (26,800) | ||||
Capital expenditures attributable to non-controlling interest | 14,200 | 26,600 | 22,400 | 106,000 | |||
Operating Income (Loss) | Midstream | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Net income attributable to non-controlling interest in subsidiaries | (14,400) | ||||||
Oil and natural gas revenues | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 461,465 | 189,104 | 1,189,772 | 505,785 | |||
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 | 460,306 | 188,492 | 1,186,086 | 503,545 | |||
Oil and natural gas revenues | Midstream | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 1,159 | 612 | 3,686 | 2,240 | |||
Midstream services revenues | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 20,486 | 19,363 | 55,774 | 49,861 | |||
Midstream services revenues | Corporate | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Midstream services revenues | Consolidations and Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (40,729) | (21,466) | (109,041) | (64,951) | |||
Midstream services revenues | Exploration and Production | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Midstream services revenues | Midstream | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 61,215 | 40,829 | 164,815 | 114,812 | |||
Sales of purchased natural gas | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 38,770 | 13,358 | 54,198 | 37,883 | |||
Sales of purchased natural gas | Corporate | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Sales of purchased natural gas | Consolidations and Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Sales of purchased natural gas | Exploration and Production | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 25,961 | 7,480 | 32,543 | 19,402 | |||
Sales of purchased natural gas | Midstream | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 12,809 | $ 5,878 | $ 21,655 | $ 18,481 |