Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document and Entity Information [Abstract] | ||
Trading symbol | LPI | |
Entity Registrant Name | Laredo Petroleum, Inc. | |
Entity Central Index Key | 0001528129 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 236,555,114 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 44,544 | $ 45,151 |
Accounts receivable, net | 107,520 | 94,321 |
Derivatives | 7,610 | 39,835 |
Other current assets | 13,056 | 13,445 |
Total current assets | 172,730 | 192,752 |
Oil and natural gas properties, full cost method: | ||
Evaluated properties | 6,951,343 | 6,752,631 |
Unevaluated properties not being depleted | 92,467 | 130,957 |
Less accumulated depletion and impairment | (4,913,384) | (4,854,017) |
Oil and natural gas properties, net | 2,130,426 | 2,029,571 |
Midstream service assets, net | 131,118 | 130,245 |
Other fixed assets, net | 39,098 | 39,819 |
Property and equipment, net | 2,300,642 | 2,199,635 |
Derivatives | 5,970 | 11,030 |
Operating lease right-of-use assets | 19,035 | 0 |
Other noncurrent assets, net | 16,412 | 16,888 |
Total assets | 2,514,789 | 2,420,305 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 76,644 | 69,504 |
Accrued capital expenditures | 36,418 | 29,975 |
Undistributed revenue and royalties | 51,730 | 48,841 |
Derivatives | 11,057 | 7,359 |
Operating lease liabilities | 10,896 | 0 |
Other current liabilities | 16,877 | 44,786 |
Total current liabilities | 203,622 | 200,465 |
Long-term debt, net | 1,064,081 | 983,636 |
Derivatives | 3,563 | 0 |
Asset retirement obligations | 54,555 | 53,387 |
Operating lease liabilities | 11,301 | 0 |
Other noncurrent liabilities | 6,235 | 8,587 |
Total liabilities | 1,343,357 | 1,246,075 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized and zero issued as of March 31, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.01 par value, 450,000,000 shares authorized and 239,191,487 and 233,936,358 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 2,392 | 2,339 |
Additional paid-in capital | 2,381,926 | 2,375,286 |
Accumulated deficit | (1,212,886) | (1,203,395) |
Total stockholders' equity | 1,171,432 | 1,174,230 |
Total liabilities and stockholders' equity | $ 2,514,789 | $ 2,420,305 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock issued (in shares) | 239,191,487 | 233,936,358 |
Common stock outstanding (in shares) | 239,191,487 | 233,936,358 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total revenues | $ 208,947 | $ 259,696 |
Costs and expenses: | ||
Lease operating expenses | 22,609 | 21,951 |
Production and ad valorem taxes | 7,219 | 11,812 |
General and administrative | 21,519 | 24,725 |
Depletion, depreciation and amortization | 63,098 | 45,553 |
Other operating expenses | 1,052 | 1,106 |
Total costs and expenses | 154,550 | 166,504 |
Operating income | 54,397 | 93,192 |
Non-operating income (expense): | ||
Gain (loss) on derivatives, net | (48,365) | 9,010 |
Interest expense | (15,547) | (13,518) |
Loss on disposal of assets, net | (939) | (2,617) |
Other income, net | 867 | 453 |
Non-operating expense, net | (63,984) | (6,672) |
Income (loss) before income taxes | (9,587) | 86,520 |
Income tax benefit: | ||
Deferred | 96 | 0 |
Total income tax benefit | 96 | 0 |
Net income (loss) | $ (9,491) | $ 86,520 |
Net income (loss) per common share: | ||
Basic (in dollars per share) | $ (0.04) | $ 0.36 |
Diluted (in dollars per share) | $ (0.04) | $ 0.36 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 230,476 | 238,228 |
Diluted (in shares) | 230,476 | 239,319 |
Oil sales | ||
Revenues: | ||
Total revenues | $ 129,171 | $ 150,914 |
NGL sales | ||
Revenues: | ||
Total revenues | 32,235 | 28,360 |
Natural gas sales | ||
Revenues: | ||
Total revenues | 11,970 | 18,160 |
Transportation and marketing expenses | ||
Costs and expenses: | ||
Cost of goods and services sold | 4,759 | 0 |
Midstream service revenues | ||
Revenues: | ||
Total revenues | 2,883 | 2,359 |
Costs and expenses: | ||
Cost of goods and services sold | 1,603 | 693 |
Sales of purchased oil | ||
Revenues: | ||
Total revenues | 32,688 | 59,903 |
Costs and expenses: | ||
Cost of goods and services sold | $ 32,691 | $ 60,664 |
Consolidated statement of stock
Consolidated statement of stockholders' equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional paid-in capital | Treasury Stock (at cost) | Accumulated deficit |
Balance, beginning of period (in shares) at Dec. 31, 2017 | 242,521 | 0 | |||
Balance, beginning of period at Dec. 31, 2017 | $ 765,579 | $ 2,425 | $ 2,432,262 | $ 0 | $ (1,669,108) |
Increase (Decrease) in Stockholders' Equity | |||||
Restricted stock awards (in shares) | 3,052 | ||||
Restricted stock awards | $ 30 | (30) | |||
Restricted stock forfeitures (in shares) | (13) | ||||
Share repurchases (in shares) | 6,728 | ||||
Share repurchases | (58,475) | $ (58,475) | |||
Stock exchanged for tax withholding (in shares) | 512 | ||||
Stock exchanged for tax withholding | (4,353) | $ (4,353) | |||
Retirement of treasury stock (in shares) | (7,240) | (7,240) | |||
Retirement of treasury stock | $ (72) | (62,756) | $ 62,828 | ||
Stock-based compensation | 11,441 | 11,441 | |||
Net income (loss) | 86,520 | 86,520 | |||
Balance, end of period (in shares) at Mar. 31, 2018 | 238,320 | 0 | |||
Balance, end of period at Mar. 31, 2018 | 941,830 | $ 2,383 | 2,380,917 | $ 0 | (1,441,470) |
Balance, beginning of period (in shares) at Dec. 31, 2018 | 233,936 | 0 | |||
Balance, beginning of period at Dec. 31, 2018 | 1,174,230 | $ 2,339 | 2,375,286 | $ 0 | (1,203,395) |
Increase (Decrease) in Stockholders' Equity | |||||
Restricted stock awards (in shares) | 5,986 | ||||
Restricted stock awards | $ 60 | (60) | |||
Restricted stock forfeitures (in shares) | (48) | ||||
Stock exchanged for tax withholding (in shares) | 683 | ||||
Stock exchanged for tax withholding | (2,612) | $ (2,612) | |||
Stock exchanged for cost of exercise of stock options (in shares) | 18 | ||||
Stock exchanged for cost of exercise of stock options | (76) | $ (76) | |||
Retirement of treasury stock (in shares) | (701) | (701) | |||
Retirement of treasury stock | $ (7) | (2,681) | $ 2,688 | ||
Exercise of stock options (in shares) | 18 | ||||
Exercise of stock options | 76 | 76 | |||
Stock-based compensation | 9,305 | 9,305 | |||
Net income (loss) | (9,491) | (9,491) | |||
Balance, end of period (in shares) at Mar. 31, 2019 | 239,191 | 0 | |||
Balance, end of period at Mar. 31, 2019 | $ 1,171,432 | $ 2,392 | $ 2,381,926 | $ 0 | $ (1,212,886) |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (9,491) | $ 86,520 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Deferred income tax benefit | (96) | 0 |
Depletion, depreciation and amortization | 63,098 | 45,553 |
Non-cash stock-based compensation, net | 7,406 | 9,339 |
Mark-to-market on derivatives: | ||
(Gain) loss on derivatives, net | 48,365 | (9,010) |
Settlements received (paid) for matured derivatives, net | 102 | (2,236) |
Change in net present value of derivative deferred premiums | 95 | 211 |
Premiums paid for derivatives | (4,016) | (4,024) |
Amortization of debt issuance costs | 846 | 793 |
Amortization of operating lease right-of-use assets | 3,056 | 0 |
Other, net | 3,779 | 4,304 |
(Increase) decrease in accounts receivable | (13,373) | 1,147 |
Increase in other current assets | (2,769) | (2,483) |
Decrease (increase) in other noncurrent assets | 57 | (100) |
Increase in accounts payable and accrued liabilities | 7,140 | 30,516 |
Increase in undistributed revenue and royalties | 2,889 | 2,541 |
Decrease in other current liabilities | (30,637) | (16,226) |
Increase (decrease) in other noncurrent liabilities | 1,007 | (374) |
Net cash provided by operating activities | 77,458 | 146,471 |
Capital expenditures: | ||
Oil and natural gas properties | (152,729) | (195,025) |
Midstream service assets | (2,262) | (3,362) |
Other fixed assets | (505) | (3,963) |
Proceeds from disposition of equity method investee, net of selling costs | 0 | 1,655 |
Proceeds from dispositions of capital assets, net of selling costs | 43 | 1,021 |
Net cash used in investing activities | (155,453) | (199,674) |
Cash flows from financing activities: | ||
Borrowings on Senior Secured Credit Facility | 80,000 | 55,000 |
Share repurchases | 0 | (53,714) |
Stock exchanged for tax withholding | (2,612) | (4,353) |
Net cash provided by (used in) financing activities | 77,388 | (3,067) |
Net decrease in cash and cash equivalents | (607) | (56,270) |
Cash and cash equivalents, beginning of period | 45,151 | 112,159 |
Cash and cash equivalents, end of period | $ 44,544 | $ 55,889 |
Organization and basis of prese
Organization and basis of presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and basis of presentation | Organization and basis of presentation a. Organization Laredo Petroleum, Inc. ("Laredo"), together with its wholly-owned subsidiaries, Laredo Midstream Services, LLC ("LMS") and Garden City Minerals, LLC ("GCM"), is an independent energy company focused on the acquisition, exploration and development of oil and natural gas properties, and midstream and marketing services, primarily in the Permian Basin of West Texas . LMS and GCM (together, the "Guarantors") guarantee all of Laredo's debt instruments. In these notes, the "Company" refers to Laredo, LMS and GCM collectively, unless the context indicates otherwise. All amounts, dollars and percentages presented in these unaudited consolidated financial statements and the related notes are rounded and, therefore, approximate. b. Basis of presentation The unaudited consolidated financial statements were derived from the historical accounting records of the Company and reflect the historical financial position, results of operations and cash flows for the periods described herein. The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). All material intercompany transactions and account balances have been eliminated in the consolidation of accounts. The unaudited consolidated financial statements have not been audited by the Company's independent registered public accounting firm, except that the consolidated balance sheet as of December 31, 2018 is derived from audited consolidated financial statements. In the opinion of management, the unaudited consolidated financial statements reflect all necessary adjustments to present fairly the Company's financial position as of March 31, 2019 and results of operations and cash flows for each of the three months ended March 31, 2019 and 2018 . Certain disclosures have been condensed or omitted from the unaudited consolidated financial statements. Accordingly, the unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2018 Annual Report. Significant accounting policies See Note 2 in the 2018 Annual Report for discussion of significant accounting policies and Note 3 for those related to the adoption of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 842, Leases ("ASC 842"). Use of estimates in the preparation of interim unaudited consolidated financial statements The preparation of the unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the reported amounts of assets and liabilities and 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. Although management believes these estimates are reasonable, actual results could differ. For further information regarding the use of estimates and assumptions, see Note 2.b in the 2018 Annual Report, Note 3 pertaining to the Company's leases and Note 6.c |
Recently issued or adopted acco
Recently issued or adopted accounting pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently issued or adopted accounting pronouncements | Note 2—Recently issued or adopted accounting pronouncements The Company considers the applicability and impact of all accounting standard updates ("ASU") issued by the FASB. The discussion of the ASU listed below was determined to be meaningful to the Company's unaudited consolidated financial statements and footnotes during the three months ended March 31, 2019 . a. Leases On January 1, 2019, the Company adopted ASC 842 using the modified retrospective approach and applying the optional transition method as of the beginning of the period of adoption. Results for the period beginning after January 1, 2019 are presented under ASC 842, while prior periods are not adjusted and continue to be reported under ASC 840. The Company utilized the transition package of expedients to leases that commenced before the effective date. ASC 842 supersedes previous lease guidance in ASC 840, Leases ("ASC 840"). The core principle of the new guidance is that a lessee should recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term related to its leases. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election, by class of underlying asset, not to recognize lease assets and lease liabilities. See Note 3 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases a. Impact of ASC 842 adoption Prior to January 1, 2019, the Company accounted for leases under ASC 840 and did not record any right-of-use assets or corresponding lease liabilities. Upon the adoption of ASC 842 on January 1, 2019, the Company recognized $22.1 million in operating lease right-of-use assets and $25.3 million in operating lease liabilities on the unaudited consolidated balance sheets for operating leases with a term greater than 12 months. The difference between the two balances of $3.2 million is mainly due to free rent and lease build-out incentives that were recorded as deferred lease liabilities under ASC 840. These deferred lease liabilities are subtracted from the right-of-use asset opening balance under ASC 842. The transition did not result in a material impact to the unaudited consolidated statements of operations nor was there a related impact to the unaudited consolidated statements of stockholders' equity. The Company utilized the modified retrospective approach in adopting the new standard and applied the optional transition method as of the beginning of the period of adoption, along with the transition package of practical expedients, and implemented certain accounting policy decisions which include: (i) short-term lease recognition exemption, (ii) establishing a balance sheet recognition capitalization threshold, (iii) not evaluating existing or expired land easements that were not previously accounted for as leases under ASC 840 and (iv) accounting for certain asset classes at a portfolio level by not separating the lease and non-lease components and accounting for the agreement as a single lease component. The Company determines whether a contract is or contains a lease at inception of the contract, based on answers to a series of questions that address whether an identified asset exists and whether the Company has the right to obtain substantially all of the benefit of the asset and to control its use over the full term of the agreement. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate, In such cases, the Company is required to use its incremental borrowing rate ("IBR"). The Company determines its IBR using both a "credit notching" approach and a "recovery method" approach. The results of these approaches are then weighted equally and averaged in order to determine the concluded IBR. This concluded IBR is utilized to discount the lease payments based on information available at lease commencement. There are no material residual value guarantees, nor any restrictions or covenants included in the Company's lease agreements. Mineral leases, including oil and natural gas leases granting the right to explore for those natural resources and rights to use the land in which those natural resources are contained, are not included in the scope of ASC 842. The Company has recognized in the unaudited consolidated balance sheets leases of commercial real estate with lease terms extending through 2027 and drilling, completion, production and other equipment leases with lease terms extending through 2020. We have various other drilling, completion and production equipment leases on a short-term basis reflected in our short-term lease costs. Certain of the Company's leases include provisions for variable payments. These variable payments are typically determined based on a measure of throughput, actual days or another measure of usage and are not included in the calculation of lease liabilities and right-of-use assets. For our drilling rigs, the variable lease costs include the payments that depend on the performance or usage of the underlying asset, the costs to move and the costs to repair the drilling rigs. For certain of our commercial office buildings, utilities and common area maintenance charges are variable and are included as an operating lease expense. For our equipment leases, the variable lease cost is the amount incurred under our contracts that are beyond the minimum rental fee, inclusive of maintenance. The Company's short-term lease costs include those that are recognized in net income (loss) during the period and capitalized as part of the cost of another asset in accordance with other GAAP. The costs related to drilling, completion and production activities are reflected at the Company's net ownership, which is consistent with the principals of proportional consolidation, and lease commitments are reflected on a gross basis. As of March 31, 2019, the Company had an average working interest of 97% in all Laredo-operated currently producing wells in its core operating area. The Company does not have any significant finance leases. Certain of the Company's lease asset classes include options to renew on a month-to-month basis. The Company considers contract-based, asset-based, market-based, and entity-based factors to determine the term over which it is reasonably certain to extend the lease in determining its right-of-use assets and liabilities. The Company's material leases do not include options to purchase the leased property. Of the Company's commercial leases, the Company subleases certain office space to third parties where it is the primary obligor under the head lease. The lease terms on those subleases each contain renewal options that do not extend past the term of the head lease. The subleases do not contain residual value guarantees. Sublease income is recognized based on the contract terms and, upon the adoption of ASC 842, is included as a reduction of lease expense under our head lease. Lease costs The table below presents certain information related to the lease costs for the Company's operating leases for the period presented: (in thousands) Three months ended March 31, 2019 Components of total lease cost: Operating lease cost $ 3,528 Short-term lease cost 46,326 Variable lease cost 518 Sublease income (247 ) Total lease cost $ 50,125 Other information See Note 11 for disclosure of cash paid for amounts included in the measurement of lease liabilities and supplemental non-cash adjustments. See Note 15 for disclosure of related-party lease amounts. Lease terms and discount rates The table below presents certain information related to the weighted-average remaining lease term and weighted-average discount rate for the Company's operating leases as of the date presented: March 31, 2019 Operating leases: Weighted-average remaining lease term 4.00 years Weighted-average discount rate 8.28 % Maturities of operating lease liabilities The table below reconciles the undiscounted cash flows for each of the first five years and the total remaining years to the operating lease liabilities recorded on the unaudited consolidated balance sheet as of the date presented: (in thousands) March 31, 2019 Operating leases: Remaining 2019 $ 12,260 2020 3,331 2021 3,029 2022 2,360 2023 1,252 Thereafter 4,243 Total minimum lease payments 26,475 Less: lease liability expense (4,278 ) Present value of future minimum lease payments 22,197 Less: current obligations under leases (10,896 ) Long-term lease obligations $ 11,301 Disclosure for the period prior to adoption of ASC 842 The Company leases office space under operating leases expiring on various dates through 2027. The following table presents future minimum rental payments required: (in thousands) December 31, 2018 2019 $ 3,092 2020 3,179 2021 3,128 2022 2,560 2023 1,358 Thereafter 4,556 Total future minimum rental payments required $ 17,873 The Company subleases office space with $5.9 million |
Property and equipment
Property and equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment The following table presents the Company's property and equipment as of the dates presented: (in thousands) March 31, 2019 December 31, 2018 Evaluated oil and natural gas properties $ 6,951,343 $ 6,752,631 Less accumulated depletion and impairment (4,913,384 ) (4,854,017 ) Evaluated oil and natural gas properties, net 2,037,959 1,898,614 Unevaluated oil and natural gas properties not being depleted 92,467 130,957 Midstream service assets 175,681 172,308 Less accumulated depreciation and impairment (44,563 ) (42,063 ) Midstream service assets, net 131,118 130,245 Depreciable other fixed assets 45,591 45,431 Less accumulated depreciation and amortization (24,752 ) (23,871 ) Depreciable other fixed assets, net 20,839 21,560 Land 18,259 18,259 Total property and equipment, net $ 2,300,642 $ 2,199,635 For the three months ended March 31, 2019 and 2018 , depletion expense for the Company's evaluated oil and natural gas properties was $8.76 per barrel of oil equivalent ("BOE") sold and $7.34 per BOE sold, respectively. The Company uses the full cost method of accounting for its oil and natural gas properties. Under this method, all acquisition, exploration and development costs, including certain related employee costs incurred for the purpose of exploring for or developing oil and natural gas properties, are capitalized and depleted on a composite unit-of-production method based on proved oil, NGL and natural gas reserves. Such amounts include the cost of drilling and equipping productive wells, dry hole costs, lease acquisition costs, delay rentals and other costs related to such activities. Costs, including related employee costs, associated with production and general corporate activities are expensed in the period incurred. Sales of oil and natural gas properties, whether or not being depleted currently, are accounted for as adjustments of capitalized costs, with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil, NGL and natural gas. The following table presents capitalized related employee costs incurred for the purpose of exploring for or developing oil and natural gas properties for the periods presented: Three months ended March 31, (in thousands) 2019 2018 Capitalized related employee costs $ 6,682 $ 6,529 The Company excludes the costs directly associated with the acquisition and evaluation of unevaluated properties from the depletion calculation until it is determined whether or not proved reserves can be assigned to the properties. The Company capitalizes a portion of its interest costs to its unevaluated properties. Capitalized interest becomes a part of the cost of the unevaluated properties and is subject to depletion when proved reserves can be assigned to the associated properties. All items classified as unevaluated properties are assessed on a quarterly basis for possible impairment. The assessment includes consideration of the following factors, among others: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results and activity, the assignment of evaluated reserves and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion. The following table presents costs incurred in the acquisition, exploration and development of oil and natural gas properties, with asset retirement obligations included in development costs, for the periods presented: Three months ended March 31, (in thousands) 2019 2018 Property acquisition costs: Evaluated $ — $ — Unevaluated — — Exploration costs 7,505 6,137 Development costs 152,717 149,038 Total costs incurred $ 160,222 $ 155,175 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt a. March 2023 Notes On March 18, 2015, the Company completed an offering of $350.0 million in aggregate principal amount of 6 1/4% senior unsecured notes due 2023 (the "March 2023 Notes"). The March 2023 Notes will mature on March 15, 2023 and bear an interest rate of 6 1/4% per annum, payable semi-annually, in cash in arrears on March 15 and September 15 of each year, commencing September 15, 2015. The March 2023 Notes are fully and unconditionally guaranteed on a senior unsecured basis by LMS, GCM and certain of the Company's future restricted subsidiaries, subject to certain automatic customary releases, including the sale, disposition or transfer of all of the capital stock or of all or substantially all of the assets of a subsidiary guarantor to one or more persons that are not the Company or a restricted subsidiary, exercise of legal defeasance or covenant defeasance options or satisfaction and discharge of the applicable indenture, designation of a subsidiary guarantor as a non-guarantor restricted subsidiary or as an unrestricted subsidiary in accordance with the applicable indenture, release from guarantee under the Senior Secured Credit Facility, or liquidation or dissolution (collectively, the "Releases"). The Company may redeem, at its option, all or part of the March 2023 Notes at any time at a price of 103.125% of face value with call premiums declining annually to 100% b. January 2022 Notes On January 23, 2014, the Company completed an offering of $450.0 million in aggregate principal amount of 5 5/8% senior unsecured notes due 2022 (the "January 2022 Notes"). The January 2022 Notes will mature on January 15, 2022 and bear an interest rate of 5 5/8% per annum, payable semi-annually, in cash in arrears on January 15 and July 15 of each year, commencing July 15, 2014. The January 2022 Notes are fully and unconditionally guaranteed on a senior unsecured basis by LMS, GCM and certain of the Company's future restricted subsidiaries, subject to certain Releases. The Company may redeem, at its option, all or part of the January 2022 Notes at any time at a price of 101.406% of face value with call premiums declining to 100% c. Senior Secured Credit Facility The Senior Secured Credit Facility matures on April 19, 2023, provided that if either the January 2022 Notes or March 2023 Notes have not been refinanced on or prior to the date (as applicable, the "Early Maturity Date") that is 90 days before their respective stated maturity dates, the Senior Secured Credit Facility will mature on such Early Maturity Date. As of March 31, 2019 , the Senior Secured Credit Facility had a maximum credit amount of $2.0 billion , a borrowing base of $1.3 billion and an aggregate elected commitment of $1.2 billion , with $270.0 million outstanding and was subject to an interest rate of 3.75% . The Senior Secured Credit Facility contains both financial and non-financial covenants, all of which the Company was in compliance with for all periods presented. Additionally, the Senior Secured Credit Facility provides for the issuance of letters of credit, limited to the lesser of total capacity or $80.0 million . As of March 31, 2019 and December 31, 2018 , the Company had one letter of credit outstanding of $14.7 million under the Senior Secured Credit Facility. For additional information see Note 7.d in the 2018 Annual Report. See Note 17.a for discussion of the regular semi-annual borrowing base redetermination of the Senior Secured Credit Facility subsequent to March 31, 2019 d. Long-term debt, net The following table summarizes the net presentation of the Company's long-term debt and debt issuance costs on the unaudited consolidated balance sheets as of the dates presented: March 31, 2019 December 31, 2018 (in thousands) Long-term debt Debt issuance costs, net Long-term debt, net Long-term debt Debt issuance costs, net Long-term debt, net January 2022 Notes $ 450,000 $ (2,766 ) $ 447,234 $ 450,000 $ (3,010 ) $ 446,990 March 2023 Notes 350,000 (3,153 ) 346,847 350,000 (3,354 ) 346,646 Senior Secured Credit Facility (1) 270,000 — 270,000 190,000 — 190,000 Total $ 1,070,000 $ (5,919 ) $ 1,064,081 $ 990,000 $ (6,364 ) $ 983,636 ______________________________________________________________________________ (1) Debt issuance costs, net related to our Senior Secured Credit Facility of $6.6 million and $7.0 million as of March 31, 2019 and December 31, 2018 |
Stockholders' equity and Equity
Stockholders' equity and Equity Incentive Plan | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' equity and Equity Incentive Plan | Stockholders' equity and Equity Incentive Plan a. Share repurchase program In February 2018, the Company's board of directors authorized a $ 200 million share repurchase program commencing in February 2018. The repurchase program expires in February 2020. Share repurchases under the share repurchase program may be made through a variety of methods, which may include open market purchases, privately negotiated transactions and block trades. The timing and actual number of share repurchases will depend upon several factors, including market conditions, business conditions, the trading price of the Company's common stock and the nature of other investment opportunities available to the Company. During the year ended December 31, 2018, the Company repurchased 11,048,742 shares of common stock at a weighted-average price of $8.78 per common share for a total of $97.1 million under this program. All shares were retired upon repurchase. There were no share repurchases under this program during the three months ended March 31, 2019. b. Treasury stock Treasury stock is recorded at cost, which includes incremental direct transaction costs, and is retired upon acquisition as a result (i) from share repurchases under the share repurchase program, (ii) from the withholding of shares of stock to satisfy tax withholding obligations that arise upon the lapse of restrictions on restricted stock awards and the exercise of stock options at the awardee's election and (iii) share repurchases to cover the cost of the exercise of stock options at the awardee's election. c. Equity Incentive Plan The Laredo Petroleum, Inc. Omnibus Equity Incentive Plan (the "Equity Incentive Plan") provides for the granting of incentive awards in the form of restricted stock awards, stock option awards, performance share awards, performance unit awards and other awards. The Equity Incentive Plan provides for the issuance of up to 24,350,000 shares of Laredo's common stock. On March 20, 2019, the Company's compensation committee recommended, and the Company's board of directors adopted, subject to stockholder approval, an amendment (the "Second Amendment") to the Equity Incentive Plan to, among other things, increase the number of shares of common stock available for issuance under the Equity Incentive Plan by 5,500,000 shares, which would bring the total available shares to issue to 29,850,000 . The Company is seeking stockholder approval of the Second Amendment at its 2019 Annual Meeting of Stockholders on May 16, 2019. The Company recognizes the fair value of stock-based compensation awards and performance unit awards, expected to vest over the requisite service period, as a charge against earnings, net of amounts capitalized. The Company's stock-based compensation awards are accounted for as equity awards and are included in "General and administrative" on the unaudited consolidated statements of operations. The Company's performance unit awards are accounted for as liability awards and are included in "General and administrative" on the unaudited consolidated statements of operations and the corresponding liabilities are included in "Other noncurrent liabilities" on the unaudited consolidated balance sheets. The Company capitalizes a portion of stock-based compensation and performance unit award compensation for employees who are directly involved in the acquisition, exploration or development of oil and natural gas properties into the full cost pool. Capitalized stock-based compensation and performance unit award compensation is included in "Evaluated properties" on the unaudited consolidated balance sheets. Restricted stock awards All service vesting restricted stock awards are treated as issued and outstanding in the unaudited consolidated financial statements. Per the award agreement terms, if an employee terminates employment prior to the restriction lapse date for reasons other than death or disability, the awarded shares are forfeited and canceled and are no longer considered issued and outstanding. If the employee's termination of employment is by reason of death or disability, all of the holder's restricted stock will automatically vest. Restricted stock awards granted to officers and employees vest in a variety of vesting schedules that mainly include (i) 33% , 33% and 34% per year beginning on the first anniversary of the grant date and (ii) fully on the first anniversary of the grant date. Stock awards granted to non-employee directors vest immediately on the grant date. The following table reflects the restricted stock award activity for the three months ended March 31, 2019 : (in thousands, except for weighted-average grant-date fair value) Restricted stock awards Weighted-average (per award) Outstanding as of December 31, 2018 4,196 $ 9.91 Granted 5,986 $ 3.43 Forfeited (48 ) $ 6.25 Vested (1) (2,261 ) $ 10.05 Outstanding as of March 31, 2019 7,873 $ 4.96 _____________________________________________________________________________ (1) The total intrinsic value of vested restricted stock awards for the three months ended March 31, 2019 was $8.6 million . The Company utilizes the closing stock price on the grant date to determine the fair value of restricted stock awards. As of March 31, 2019 , unrecognized stock-based compensation related to the restricted stock awards expected to vest was $34.3 million . Such cost is expected to be recognized over a weighted-average period of 2.34 years Stock option awards Stock option awards granted under the Equity Incentive Plan vest and become exercisable in four equal installments on each of the four anniversaries of the grant date. As of March 31, 2019 , the 2,466,022 outstanding stock option awards have a weighted-average exercise price of $ 12.64 per award and a weighted-average remaining contractual term of 3.05 years . There were de minimis exercises and expirations or cancellations of stock option awards during the three months ended March 31, 2019 . There were no grants or forfeits of stock option awards during the three months ended March 31, 2019 . The Company utilizes the Black-Scholes option pricing model to determine the fair value of stock option awards and recognizes the associated expense on a straight-line basis over the four -year requisite service period of the awards. Determining the fair value of equity-based awards requires judgment, including estimating the expected term that stock option awards will be outstanding prior to exercise and the associated expected volatility. As of March 31, 2019 , unrecognized stock-based compensation related to stock option awards expected to vest was $3.0 million . Such cost is expected to be recognized over a weighted-average period of 1.35 years Performance share awards Performance share awards, which the Company has determined are equity awards, are subject to a combination of market, performance and service vesting criteria. For awards with market criteria or portions of awards with market criteria, which include: (i) the relative three-year total shareholder return comparing the Company's shareholder return to the shareholder return of the peer group specified in the award agreement ("RTSR Performance Percentage"), (ii) the Company's absolute three-year total shareholder return ("ATSR Appreciation") and (iii) the Company's total shareholder return ("TSR"), a Monte Carlo simulation prepared by an independent third party is utilized to determine the grant-date fair value and the associated expense is recognized on a straight-line basis over the three -year requisite service period of the awards. For portions of awards with performance criteria, which is the Company's three-year return on average capital employed ("ROACE Percentage"), the grant-date fair value is equal to the Company's closing stock price on the grant date, and for each reporting period, the associated expense fluctuates and is adjusted based on an estimated probability of how many shares are to be awarded for the three -year performance period. Such estimated shares, if earned, are expected to be issued in the first quarter following the completion of the requisite service period based on the achievement of certain market and performance criteria. The following table reflects the performance share award activity for the three months ended March 31, 2019: (in thousands, except for weighted-average grant-date fair value) Performance share awards Weighted-average (per award) Outstanding as of December 31, 2018 3,436 $ 13.74 Vested (1) (1,503 ) $ 17.68 Outstanding as of March 31, 2019 1,933 $ 10.68 ______________________________________________________________________________ (1) The performance share awards granted on May 25, 2016 had a performance period of January 1, 2016 to December 31, 2018 and, as their market criteria were not satisfied, resulted in a TSR modifier of 0 % based on the Company finishing in the ninth percentile of its peer group for relative TSR. As such, the granted units lapsed and were not converted into the Company's common stock during the first quarter of 2019. As of March 31, 2019 , unrecognized stock-based compensation related to the performance share awards expected to vest was $9.1 million . Such cost is expected to be recognized over a weighted-average period of 1.56 years Stock-based compensation expense The following has been recorded to stock-based compensation expense for the periods presented: Three months ended March 31, (in thousands) 2019 2018 Restricted stock award compensation $ 5,323 $ 6,045 Stock option award compensation 818 1,069 Performance share award compensation 3,164 4,327 Total stock-based compensation, gross 9,305 11,441 Less amounts capitalized in evaluated oil and natural gas properties (1,899 ) (2,102 ) Total stock-based compensation, net $ 7,406 $ 9,339 See Note 17.d for discussion of the Company's workforce reduction subsequent to March 31, 2019 Performance unit awards Performance unit awards, which the Company has determined are liability awards, are subject to a combination of market, performance and service vesting criteria and can be settled in cash, stock or a combination of cash and stock at the election of the Company's board of directors. For portions of awards with market criteria, which include the RTSR Performance Percentage (as defined above) and the ATSR Appreciation (as defined above), a Monte Carlo simulation prepared by an independent third party is utilized to determine the grant-date fair value and is re-measured on the last day of each reporting period until settlement, with the associated expense adjusted, in accordance with GAAP. For portions of awards with performance criteria, which is the ROACE Percentage (as defined above), the grant-date fair value is equal to the Company's closing stock price on the grant date, and subsequently the fair value is equal to the Company's closing stock price on the last day of each reporting period until settlement, with the associated expense adjusted, in accordance with GAAP. Additionally, the associated expense related to awards with performance criteria fluctuates and is adjusted based on an estimated probability of payout that will be awarded for the three -year performance period as of the last day of each reporting period until settlement. The performance unit award compensation expense is recognized on a straight-line basis over the three -year requisite service period of the awards. These awards are accounted for as liability awards as the current election by the Company's board of directors is to settle the awards in cash, and if earned, are expected to be paid in the first quarter following the completion of the requisite service period, based on the achievement of certain market and performance criteria. The following table reflects the performance unit award activity for the three months ended March 31, 2019 : (in thousands) Performance unit awards Outstanding as of December 31, 2018 — Granted (1) 2,813 Outstanding as of March 31, 2019 2,813 ______________________________________________________________________________ (1) The amount potentially payable in cash at the end of the requisite service period for the performance unit awards granted on February 28, 2019 will be determined based on three criteria: (i) RTSR Performance Percentage, (ii) ATSR Appreciation and (iii) ROACE Percentage. The RTSR Performance Percentage, ATSR Appreciation and ROACE Percentage will be used to identify the "RTSR Factor," the "ATSR Factor" and the "ROACE Factor," respectively, which are used to compute the "Performance Multiple" and ultimately to determine the final value of each performance unit granted at the maturity date. In computing the Performance Multiple, the RTSR Factor is given a 25% weight, the ATSR Factor a 25% weight and the ROACE Factor a 50% weight. These awards have a performance period of January 1, 2019 to December 31, 2021. As of March 31, 2019 , unrecognized performance unit award compensation related to the performance unit awards expected to vest was $8.2 million . Such cost is expected to be recognized over a weighted-average period of 2.92 years. The assumptions used to estimate the fair value of the performance unit awards as of the date presented are as follows: March 31, 2019 (1) (.25) RTSR Factor + (.25) ATSR Factor fair value assumptions: Remaining performance period 2.76 years Risk-free interest rate (2) 2.20 % Dividend yield — % Expected volatility (3) 55.13 % Closing stock price on March 29, 2019 $ 3.09 Fair value per performance unit award (market criteria) $ 3.18 (.50) ROACE Factor fair value assumption: Closing stock price on March 29, 2019 $ 3.09 Fair value per performance unit award (performance criteria) $ 3.09 Combined fair value per performance unit award $ 3.14 ______________________________________________________________________________ (1) The $3.14 per unit fair value consists of a (i) $3.18 per unit fair value, determined utilizing a Monte Carlo simulation on March 31, 2019 , for the combined (.25) RTSR Factor and (.25) ATSR Factor and (ii) $3.09 per unit fair value for the (.50) ROACE Factor determined based on the closing price of the Company's common stock on the New York Stock Exchange on March 29, 2019 and based on a 100% estimated probability of payout to be awarded for the three-year performance period as of March 31, 2019 . (2) The risk-free interest rate was derived using a term-matched zero-coupon yield derived from the U.S. Treasury constant maturities yield curve on March 29, 2019. (3) The Company utilized its own historical volatility in order to develop the expected volatility. Performance unit award compensation expense The following has been recorded to performance unit award compensation expense for the periods presented: Three months ended March 31, (in thousands) 2019 2018 Performance unit award compensation, gross $ 238 $ — Less amounts capitalized in evaluated oil and natural gas properties (46 ) — Total performance unit award compensation, net $ 192 $ — |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Due to the inherent volatility in oil, NGL and natural gas prices, commodity transportation costs and differences in the prices of oil, NGL and natural gas between where the Company produces and where the Company sells such commodities, the Company engages in derivative transactions, such as puts, swaps, collars and basis swaps to hedge price risk associated with a portion of the Company's anticipated production. By removing a portion of the price volatility associated with future production, the Company expects to mitigate, but not eliminate, the potential effects of variability in cash flows from operations. See Notes 2.f and 9 in the 2018 Annual Report for discussion of the Company's accounting policies for derivatives and information on the transaction types and settlement indexes, respectively. The following table summarizes open derivative positions as of March 31, 2019, for derivatives that were entered into through March 31, 2019, for the settlement periods presented: Remaining year 2019 Year 2020 Year 2021 Oil: Puts: Volume (Bbl) 6,050,000 366,000 — Weighted-average floor price ($/Bbl) $ 47.45 $ 45.00 $ — Volume with deferred premium (Bbl) 3,575,000 — — Weighted-average deferred premium price ($/Bbl) $ 3.21 $ — $ — Swaps: Volume (Bbl) 495,000 695,400 — Weighted-average price ($/Bbl) $ 53.45 $ 52.18 $ — Collars: Volume (Bbl) — 1,134,600 912,500 Weighted-average floor price ($/Bbl) $ — $ 45.00 $ 45.00 Weighted-average ceiling price ($/Bbl) $ — $ 76.13 $ 71.00 Totals: Total volume with floor price (Bbl) 6,545,000 2,196,000 912,500 Weighted-average floor price ($/Bbl) $ 47.91 $ 47.27 $ 45.00 Total volume with ceiling price (Bbl) 495,000 1,830,000 912,500 Weighted-average ceiling price ($/Bbl) $ 53.45 $ 67.03 $ 71.00 Basis Swaps: WTI Midland to WTI NYMEX: Volume (Bbl) 1,840,000 — — Weighted-average price ($/Bbl) $ (2.89 ) $ — $ — WTI Midland to WTI formula basis: Volume (Bbl) 552,000 — — Weighted-average price ($/Bbl) $ (4.37 ) $ — $ — WTI Houston to WTI Midland: Volume (Bbl) 910,000 — — Weighted-average price ($/Bbl) $ 7.30 $ — $ — NGL: Swaps - Purity Ethane: Volume (Bbl) 1,787,500 366,000 912,500 Weighted-average price ($/Bbl) $ 14.22 $ 13.60 $ 12.01 Swaps - Non-TET Propane: Volume (Bbl) 1,430,000 1,244,400 730,000 Weighted-average price ($/Bbl) $ 27.97 $ 26.58 $ 25.52 Swaps - Non-TET Normal Butane: Volume (Bbl) 550,000 439,200 255,500 Weighted-average price ($/Bbl) $ 30.73 $ 28.69 $ 27.72 Swaps - Non-TET Isobutane: Volume (Bbl) 137,500 109,800 67,525 Weighted-average price ($/Bbl) $ 31.08 $ 29.99 $ 28.79 Swaps - Non-TET Natural Gasoline: Volume (Bbl) 467,500 402,600 237,250 Weighted-average price ($/Bbl) $ 45.80 $ 45.15 $ 44.31 TABLE CONTINUES ON NEXT PAGE Remaining year 2019 Year 2020 Year 2021 Total NGL volume (Bbl) 4,372,500 2,562,000 2,202,775 Natural gas: Henry Hub NYMEX Swaps: Volume (MMBtu) 29,425,000 23,790,000 14,052,500 Weighted-average price ($/MMBtu) $ 3.09 $ 2.72 $ 2.63 Basis Swaps: Volume (MMBtu) 29,425,000 32,574,000 23,360,000 Weighted-average price ($/MMBtu) $ (1.51 ) $ (0.76 ) $ (0.47 ) See Note 8.a for the fair value measurement of derivatives. See Note 17.c for the Company's subsequent hedge restructuring and corresponding summary of open derivative positions as of March 31, 2019 for derivative terminations and trade activity through May 1, 2019 |
Fair value measurements
Fair value measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements See Note 10 in the 2018 Annual Report for discussion of the Company's accounting policies for fair value measurements. a. Fair value measurement on a recurring basis The following tables summarize the Company's derivatives' fair value hierarchy by commodity and current and noncurrent assets and liabilities on a gross basis and the net presentation included in "Derivatives" on the unaudited consolidated balance sheets as of the dates presented: (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the unaudited consolidated balance sheets As of March 31, 2019: Assets: Current: Oil derivatives $ — $ 4,911 $ — $ 4,911 $ (5,242 ) $ (331 ) NGL derivatives — 7,541 — 7,541 (6,210 ) 1,331 Natural gas derivatives — 19,694 — 19,694 (5,943 ) 13,751 Oil derivative deferred premiums — — — — (7,141 ) (7,141 ) Noncurrent: Oil derivatives $ — $ 2,432 $ — $ 2,432 $ (646 ) $ 1,786 NGL derivatives — 2,518 — 2,518 (1,506 ) 1,012 Natural gas derivatives — 3,446 — 3,446 (274 ) 3,172 Oil derivative deferred premiums — — — — — — Liabilities: Current: Oil derivatives $ — $ (11,996 ) $ — $ (11,996 ) $ 5,242 $ (6,754 ) NGL derivatives — (5,871 ) — (5,871 ) 6,210 339 Natural gas derivatives — (5,082 ) — (5,082 ) 5,943 861 Oil derivative deferred premiums — — (12,644 ) (12,644 ) 7,141 (5,503 ) Noncurrent: Oil derivatives $ — $ (2,991 ) $ — $ (2,991 ) $ 646 $ (2,345 ) NGL derivatives — (3,916 ) — (3,916 ) 1,506 (2,410 ) Natural gas derivatives — 918 — 918 274 1,192 Oil derivative deferred premiums — — — — — — Net derivative asset (liability) positions $ — $ 11,604 $ (12,644 ) $ (1,040 ) $ — $ (1,040 ) (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the unaudited consolidated balance sheets As of December 31, 2018: Assets: Current: Oil derivatives $ — $ 44,425 $ — $ 44,425 $ (7,907 ) $ 36,518 NGL derivatives — 1,974 — 1,974 — 1,974 Natural gas derivatives — 18,991 — 18,991 (3,267 ) 15,724 Oil derivative deferred premiums — — — — (14,381 ) (14,381 ) Noncurrent: Oil derivatives $ — $ 10,626 $ — $ 10,626 $ — $ 10,626 NGL derivatives — 1,024 — 1,024 — 1,024 Natural gas derivatives — 108 — 108 (728 ) (620 ) Oil derivative deferred premiums — — — — — — Liabilities: Current: Oil derivatives $ — $ (9,059 ) $ — $ (9,059 ) $ 7,907 $ (1,152 ) NGL derivatives — — — — — — Natural gas derivatives — (7,290 ) — (7,290 ) 3,267 (4,023 ) Oil derivative deferred premiums — — (16,565 ) (16,565 ) 14,381 (2,184 ) Noncurrent: Oil derivatives $ — $ — $ — $ — $ — $ — NGL derivatives — — — — — — Natural gas derivatives — (728 ) — (728 ) 728 — Oil derivative deferred premiums — — — — — — Net derivative asset (liability) positions $ — $ 60,071 $ (16,565 ) $ 43,506 $ — $ 43,506 Significant Level 2 inputs associated with the calculation of discounted cash flows used in the fair value mark-to-market analysis of derivatives include each derivative contract's corresponding commodity index price(s), appropriate risk-adjusted discount rates and forward price curve models for substantially similar instruments generated from a compilation of data gathered from third parties. The Company's deferred premiums associated with its derivative contracts are categorized as Level 3, as the Company utilizes a net present value calculation to determine the valuation. They are considered to be measured on a recurring basis as the derivative contracts they derive from are measured on a recurring basis. As derivative contracts containing deferred premiums are entered into, the Company discounts the associated deferred premium to its net present value at the contract trade date, using the Senior Secured Credit Facility rate at the trade date and then records the change in net present value to interest expense over the period from trade until the final settlement date at the end of the contract. After this initial valuation, the net present value of each deferred premium is not adjusted; therefore, significant increases (decreases) in the Senior Secured Credit Facility rate would result in a significantly lower (higher) fair value measurement for each new contract entered into that contained a deferred premium; however, the valuation for the deferred premiums already recorded would remain unaffected. While the Company believes the sources utilized to arrive at the fair value estimates are reliable, different sources or methods could have yielded different fair value estimates. The deferred premiums are included in "Derivatives" on the unaudited consolidated balance sheets, and as of March 31, 2019 , their input rates range from 2.31% to 3.32% with a net fair value weighted-average rate of 2.74% . The following table presents payments required for derivative deferred premiums as of March 31, 2019 for the periods presented: (in thousands) March 31, 2019 Remaining 2019 $ 11,486 2020 1,295 Total $ 12,781 A summary of the changes in net assets and liabilities classified as Level 3 measurements for the periods presented are as follows: Three months ended March 31, (in thousands) 2019 2018 Balance of Level 3 at beginning of period $ (16,565 ) $ (28,683 ) Change in net present value of derivative deferred premiums (1) (95 ) (211 ) Total purchases and settlements of derivative deferred premiums: Purchases — (5,422 ) Settlements 4,016 4,024 Balance of Level 3 at end of period $ (12,644 ) $ (30,292 ) ____________________________________________________________________________ (1) These amounts are included in "Interest expense" in the unaudited consolidated statements of operations. See Note 2.f in the 2018 Items not accounted for at fair value The carrying amounts reported in the unaudited consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable, accrued capital expenditures, undistributed revenue and royalties and other accrued assets and liabilities approximate their fair values. The Company has not elected to account for its debt instruments at fair value. The following table presents the carrying amounts and fair values of the Company's debt as of the dates presented: March 31, 2019 December 31, 2018 (in thousands) Long-term Fair value (1) Long-term Fair value (1) January 2022 Notes $ 450,000 $ 412,313 $ 450,000 $ 402,885 March 2023 Notes 350,000 312,375 350,000 316,624 Senior Secured Credit Facility 270,000 270,112 190,000 190,054 Total $ 1,070,000 $ 994,800 $ 990,000 $ 909,563 ______________________________________________________________________________ (1) The fair values of the debt outstanding on the January 2022 Notes and the March 2023 Notes were determined using the March 31, 2019 and December 31, 2018 Level 1 fair value hierarchy quoted market price for each respective instrument. The fair value of the outstanding debt on the Senior Secured Credit Facility as of March 31, 2019 and December 31, 2018 was estimated utilizing the Level 2 fair value hierarchy pricing model for similar instruments. See Note 10 in the 2018 |
Net income (loss) per common sh
Net income (loss) per common share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net income per common share | Net income (loss) per common share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted-average common shares outstanding for the period. Diluted net income (loss) per common share reflects the potential dilution of non-vested restricted stock awards, outstanding stock option awards and non-vested performance share awards. See Note 6.c for additional discussion of these awards. For the three months ended March 31, 2019, all of these potentially dilutive items were anti-dilutive due to the Company's net loss and, therefore, were excluded from the calculation of diluted net income (loss) per common share. For the three months ended March 31, 2018, the dilutive effects of these awards were calculated utilizing the treasury stock method. For additional discussion of these dilutive effects, see Note 10 in the first-quarter 2018 Quarterly Report. The following table reflects the calculation of basic and diluted weighted-average common shares outstanding and net income (loss) per common share for the periods presented: Three months ended March 31, (in thousands, except for per share data) 2019 2018 Net income (loss) (numerator): Net income (loss)—basic and diluted $ (9,491 ) $ 86,520 Weighted-average common shares outstanding (denominator): Basic (1) 230,476 238,228 Dilutive non-vested restricted stock awards — 1,064 Dilutive outstanding stock option awards — 27 Diluted 230,476 239,319 Net income (loss) per common share: Basic $ (0.04 ) $ 0.36 Diluted $ (0.04 ) $ 0.36 _____________________________________________________________________________ (1) Weighted-average common shares outstanding used in the computation of basic and diluted net income (loss) per common share was computed taking into account share repurchases that occurred during the three months ended March 31, 2018. See Note 6.a |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies a. Litigation From time to time, the Company is subject to various legal proceedings arising in the ordinary course of business, including proceedings for which the Company may not have insurance coverage. While many of these matters involve inherent uncertainty, as of the date hereof, the Company does not currently believe that any such legal proceedings will have a material adverse effect on the Company's business, financial position, results of operations or liquidity. See Note 17.b for discussion of a favorable settlement received by the Company, which occurred subsequent to March 31, 2019 , in connection with the Company's damage claims asserted in a previously disclosed litigation matter relating to a breach and wrongful termination of a crude oil purchase agreement. b. Drilling contracts The Company has committed to several drilling rig contracts with third parties to facilitate the Company's drilling plans. Certain of these contracts are for terms of multiple months and contain early termination clauses that require the Company to potentially pay penalties to the third party should the Company cease drilling efforts. These penalties would negatively impact the Company's financial statements upon early contract termination. There were no penalties incurred for early contract termination for either of the three months ended March 31, 2019 or 2018 . As the Company's current drilling rig contracts are considered leases under the scope of ASC 842, the present value of the future commitment as of March 31, 2019 related to drilling contracts with an initial term greater than 12 months is included in "Operating lease liabilities" under "Current liabilities" on the unaudited consolidated balance sheet as of March 31, 2019. The future commitment of $2.2 million as of March 31, 2019 related to drilling contracts with a term less than 12 months is not recorded in the unaudited consolidated balance sheets. See Note 3.a for further discussion of the impact of the ASC 842 adoption. Management does not currently anticipate the early termination of these contracts in 2019. c. Firm sale and transportation commitments The Company has committed to deliver, for sale or transportation, fixed volumes of product under certain contractual arrangements that specify the delivery of a fixed and determinable quantity. If not fulfilled, the Company is subject to firm transportation payments on excess pipeline capacity and other contractual penalties. These commitments are normal and customary for the Company's business. In certain instances, the Company has used spot market purchases to meet its commitments in certain locations or due to favorable pricing. Management anticipates continuing this practice in the future. The Company incurred firm transportation payments on excess pipeline capacity and other contractual penalties of $0.5 million and $0.1 million during the three months ended March 31, 2019 and 2018 , respectively. These firm transportation payments on excess pipeline capacity and other contractual penalties are netted with the respective revenue stream in the unaudited consolidated statements of operations. Future commitments of $358.5 million as of March 31, 2019 are not recorded in the unaudited consolidated balance sheets. d. Sand purchase and supply agreement During the second quarter of 2018, the Company entered into a sand purchase and supply agreement, for a term of one year , whereby it has committed to buy a certain volume of in-basin sand, utilized in the Company's completion activities, for a fixed price. As of March 31, 2019 , under the terms of this agreement, the Company is required to purchase a certain percentage of the volume commitment or it would incur a shortfall payment of $1.1 million at the end of the contract period. e. Federal and state regulations Oil and natural gas exploration, production and related operations are subject to extensive federal and state laws, rules and regulations. Failure to comply with these laws, rules and regulations can result in substantial penalties. The regulatory burden on the oil and natural gas industry increases the cost of doing business and affects profitability. The Company believes that it is in compliance with currently applicable federal and state regulations related to oil and natural gas exploration and production, and that compliance with the current regulations will not have a material adverse impact on the financial position or results of operations of the Company. These rules and regulations are frequently amended or reinterpreted; therefore, the Company is unable to predict the future cost or impact of complying with these regulations. f. Environmental The Company is subject to extensive federal, state and local environmental laws and regulations. These laws, among other things, regulate the discharge of materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum or chemical substances at various sites. Environmental expenditures are expensed in the period incurred. Liabilities for expenditures of a non-capital nature are recorded when environmental assessment or remediation is probable and the costs can be reasonably estimated. Such liabilities are generally undiscounted unless the timing of cash payments is fixed and readily determinable. Management believes no materially significant liabilities of this nature existed as of March 31, 2019 or December 31, 2018 |
Supplemental cash flow and non-
Supplemental cash flow and non-cash information | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flow and non-cash information | Supplemental cash flow and non-cash information The following table presents supplemental cash flow and non-cash information: Three months ended March 31, (in thousands) 2019 2018 Supplemental cash flow information: Capitalized interest $ 242 $ 255 Supplemental non-cash investing information: Increase (decrease) in accrued capital expenditures $ 6,443 $ (43,336 ) Capitalized stock-based compensation in evaluated oil and natural gas properties $ 1,899 $ 2,102 Capitalized asset retirement costs $ 271 $ 130 Supplemental non-cash financing information: Increase in accrued stock repurchases $ — $ 4,761 The following table presents supplemental cash flow and non-cash information related to leases: (in thousands) Three months ended March 31, 2019 Supplemental cash paid for amounts included in the measurement of lease liabilities information: Operating cash flows for operating leases $ 3,564 Supplemental non-cash adjustments information: Right-of-use assets obtained in exchange for operating lease liabilities $ 22,090 See Note 3 |
Asset retirement obligations
Asset retirement obligations | 3 Months Ended |
Mar. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligations | Asset retirement obligations See Note 2.k in the 2018 Annual Report for discussion of the Company's accounting policies for asset retirement obligations. The following table reconciles the Company's asset retirement obligation liability associated with tangible long-lived assets for the periods presented: Three months ended March 31, (in thousands) 2019 2018 Liability at beginning of period $ 56,882 $ 55,506 Liabilities added due to acquisitions, drilling, midstream service asset construction and other 271 130 Accretion expense 1,052 1,106 Liabilities settled due to plugging and abandonment or removed due to sale (447 ) (440 ) Liability at end of period $ 57,758 $ 56,302 |
Revenue recognition
Revenue recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | Revenue recognition a. Impact of ASC 606 adoption on the Medallion Sale Medallion Gathering & Processing, LLC, a Texas limited liability company formed on October 12, 2012, which, together with its wholly-owned subsidiaries (collectively, "Medallion"), was established for the purpose of developing midstream solutions and providing midstream infrastructure to bring oil to market in the Midland Basin. Prior to the Medallion Sale (defined below), LMS held 49% of Medallion's ownership units. On October 30, 2017, LMS, together with Medallion Midstream Holdings, LLC, which is owned and controlled by an affiliate of the third-party interest-holder, The Energy & Minerals Group, completed the sale of 100% of the ownership interests in Medallion to an affiliate of Global Infrastructure Partners ("GIP"), for cash consideration of $1.825 billion (the "Medallion Sale"). LMS' total net cash proceeds before taxes for its 49% ownership interest in Medallion were $831.3 million . LMS has a Transportation Services Agreement (the "TA") with a wholly-owned subsidiary of Medallion under which LMS receives firm transportation of the Company's crude oil production from Reagan County and Glasscock County in Texas to Colorado City, Texas that continues to be in effect after the Medallion Sale. Historically, the Company's crude oil purchasers have fulfilled the commitment by transporting crude oil, purchased from the Company, under the TA, as agent. As a result of the Company's continuing involvement with Medallion by guaranteeing cash flows under the TA, the Company recorded a deferred gain in the amount of its maximum exposure to loss related to such guarantees that would have been amortized over the TA's firm commitment transportation term through 2024 had the Company not adopted new revenue recognition guidance on January 1, 2018. At December 31, 2017, the Medallion Sale was accounted for under the real estate guidance in ASC 360-20, Property, Plant, and Equipment ("ASC 360-20"), and the Company's maximum exposure to loss associated with future commitments under the TA was $141.1 million that was not recorded in the Company's unaudited consolidated balance sheets. Under ASC 360-20, as a result of the Company's continuing involvement with Medallion by guaranteeing cash flows under the TA, the Company recorded a deferred gain in the amount of its maximum exposure to loss related to such guarantees. This deferred gain would have been amortized over the TA's firm commitment transportation term through 2024 had the Company not adopted ASC 606 on January 1, 2018. In adopting ASC 606, the guidance in ASC 360-20 was superseded by ASC 860, Transfers and Servicing ("ASC 860"). The Medallion Sale is within the scope of ASC 860 and qualifies for sale accounting and recognition of the previously deferred gain because as of the date of the Medallion Sale (i) the Company transferred and legally isolated its full interests in Medallion to Global Infrastructure Partners ("GIP"), (ii) GIP received the right to pledge or exchange Medallion ownership interests at its full discretion and (iii) the Company did not have effective control over Medallion. Therefore, the deferred gain of $141.1 million was recognized as an adjustment to the 2018 beginning balance of accumulated deficit, presented on the unaudited consolidated statements of stockholders' equity, in accordance with the modified retrospective approach of adoption. See Notes 4.c and 5.a in the 2018 Annual Report for further discussion of the Medallion Sale, the TA and the adoption of ASC 606. b. Revenue recognition Oil, NGL and natural gas revenues are generally recognized at the point in time that control of the product is transferred to the customer. Midstream service revenues are generated through fees for products and services that need to be delivered by midstream infrastructure, including oil and liquids-rich natural gas gathering services as well as rig fuel, natural gas lift and |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company is subject to federal and state income taxes and the Texas franchise tax. The Company had federal net operating loss carryforwards totaling $1.9 billion and state of Oklahoma net operating loss carryforwards totaling $36.0 million as of March 31, 2019 , which begin expiring in 2026 and 2032, respectively. Due to the enactment of Public Law No. 115-97, a comprehensive tax reform bill commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"), $157.2 million of the federal net operating loss carryforward will not expire but may be limited in future periods. As of March 31, 2019 , the Company believes it is more likely than not that a portion of the net operating loss carryforwards are not fully realizable. The Company continues to consider new evidence, both positive and negative, in determining whether, based on the weight of that evidence, a valuation allowance is needed. Such consideration includes projected future cash flows from its oil, NGL and natural gas reserves (including the timing of those cash flows), the reversal of deferred tax liabilities recorded as of March 31, 2019 , the Company's ability to capitalize intangible drilling costs, rather than expensing these costs in order to prevent an operating loss carryforward from expiring unused and future projections of Oklahoma sourced income. As of March 31, 2019 , a total valuation allowance of $239.0 million has been recorded against the net deferred tax asset, resulting in a net Texas deferred tax liability of $5.0 million , which is included in "Other noncurrent liabilities" on the unaudited consolidated balance sheets. The Company paid Alternative Minimum Tax ("AMT") related to the Medallion Sale in 2017. The payment of AMT creates an AMT credit carryforward. Due to changes in the Tax Act, AMT credit carryforwards do not expire and are now refundable over a five-year period. Therefore, as of March 31, 2019 , a receivable has been recorded in the amount of $4.1 million , of which $2.1 million is included in "Accounts receivable, net" and $2.0 million |
Related party
Related party | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related party | Related party The Company has a drilling contract with Helmerich & Payne, Inc. ("H&P"). Laredo's Chairman and Chief Executive Officer is on the board of directors of H&P. The drilling contract with H&P is considered a lease under the scope of ASC 842 and, as the initial term is greater than 12 months, it is capitalized as an operating lease and is included in "Operating lease right-of-use-assets." The present value of the future commitment is included in "Operating lease liabilities" under "Current liabilities" on the unaudited consolidated balance sheet as of March 31, 2019. The following table presents the operating lease liability related to H&P included in the unaudited consolidated balance sheet: (in thousands) March 31, 2019 Operating lease liabilities $ 7,900 The following table presents the capital expenditures for oil and natural gas properties paid to H&P included in the unaudited consolidated statements of cash flows: Three months ended March 31, (in thousands) 2019 2018 Capital expenditures for oil and natural gas properties $ 2,982 $ — |
Subsidiary guarantors
Subsidiary guarantors | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Subsidiary guarantors | Subsidiary guarantors The Guarantors have fully and unconditionally guaranteed the January 2022 Notes, the March 2023 Notes and the Senior Secured Credit Facility, subject to the Releases. In accordance with practices accepted by the SEC, Laredo has prepared condensed consolidating financial statements to quantify the balance sheets, results of operations and cash flows of such subsidiaries as subsidiary guarantors. The following unaudited condensed consolidating (i) balance sheets as of March 31, 2019 and December 31, 2018 , (ii) statements of operations for the three months ended March 31, 2019 and 2018 and (iii) statements of cash flows for the three months ended March 31, 2019 and 2018 present financial information for Laredo on a stand-alone basis (carrying any investment in subsidiaries under the equity method), financial information for the subsidiary guarantors on a stand-alone basis and the consolidation and elimination entries necessary to arrive at the information for the Company on a condensed consolidated basis. Income taxes for LMS and for GCM are recorded on Laredo's balance sheets, statements of operations and statements of cash flows as they are disregarded entities for income tax purposes. Laredo and the Guarantors are not restricted from making intercompany distributions to each other. Condensed consolidating balance sheet March 31, 2019 (in thousands) Laredo Subsidiary Intercompany Consolidated Accounts receivable, net $ 94,635 $ 12,885 $ — $ 107,520 Other current assets 63,836 1,374 — 65,210 Oil and natural gas properties, net 2,145,399 9,076 (24,049 ) 2,130,426 Midstream service assets, net — 131,118 — 131,118 Other fixed assets, net 39,061 37 — 39,098 Investment in subsidiaries 135,199 — (135,199 ) — Other noncurrent assets, net 37,245 4,172 — 41,417 Total assets $ 2,515,375 $ 158,662 $ (159,248 ) $ 2,514,789 Accounts payable and accrued liabilities $ 57,291 $ 19,353 $ — $ 76,644 Other current liabilities 125,377 1,601 — 126,978 Long-term debt, net 1,064,081 — — 1,064,081 Other noncurrent liabilities 73,145 2,509 — 75,654 Total stockholders' equity 1,195,481 135,199 (159,248 ) 1,171,432 Total liabilities and stockholders' equity $ 2,515,375 $ 158,662 $ (159,248 ) $ 2,514,789 Condensed consolidating balance sheet December 31, 2018 (in thousands) Laredo Subsidiary Intercompany Consolidated Accounts receivable, net $ 83,424 $ 10,897 $ — $ 94,321 Other current assets 97,045 1,386 — 98,431 Oil and natural gas properties, net 2,043,009 9,113 (22,551 ) 2,029,571 Midstream service assets, net — 130,245 — 130,245 Other fixed assets, net 39,751 68 — 39,819 Investment in subsidiaries 128,380 — (128,380 ) — Other noncurrent assets, net 23,783 4,135 — 27,918 Total assets $ 2,415,392 $ 155,844 $ (150,931 ) $ 2,420,305 Accounts payable and accrued liabilities $ 54,167 $ 15,337 $ — $ 69,504 Other current liabilities 121,297 9,664 — 130,961 Long-term debt, net 983,636 — — 983,636 Other noncurrent liabilities 59,511 2,463 — 61,974 Total stockholders' equity 1,196,781 128,380 (150,931 ) 1,174,230 Total liabilities and stockholders' equity $ 2,415,392 $ 155,844 $ (150,931 ) $ 2,420,305 Condensed consolidating statement of operations For the three months ended March 31, 2019 (in thousands) Laredo Subsidiary Intercompany Consolidated Total revenues $ 173,521 $ 54,332 $ (18,906 ) $ 208,947 Total costs and expenses 119,735 52,223 (17,408 ) 154,550 Operating income 53,786 2,109 (1,498 ) 54,397 Interest expense (15,547 ) — — (15,547 ) Other non-operating income (expense), net (46,328 ) 93 (2,202 ) (48,437 ) Income (loss) before income taxes (8,089 ) 2,202 (3,700 ) (9,587 ) Total income tax benefit 96 — — 96 Net income (loss) $ (7,993 ) $ 2,202 $ (3,700 ) $ (9,491 ) Condensed consolidating statement of operations For the three months ended March 31, 2018 (in thousands) Laredo Subsidiary Intercompany Consolidated Total revenues $ 197,825 $ 76,300 $ (14,429 ) $ 259,696 Total costs and expenses 105,688 74,564 (13,748 ) 166,504 Operating income 92,137 1,736 (681 ) 93,192 Interest expense (13,518 ) — — (13,518 ) Other non-operating income (expense), net 8,582 (256 ) (1,480 ) 6,846 Income before income taxes 87,201 1,480 (2,161 ) 86,520 Total income tax — — — — Net income $ 87,201 $ 1,480 $ (2,161 ) $ 86,520 Condensed consolidating statement of cash flows For the three months ended March 31, 2019 (in thousands) Laredo Subsidiary Intercompany Consolidated Net cash provided by (used in) operating activities $ 82,020 $ (2,360 ) $ (2,202 ) $ 77,458 Capital expenditures and other, net (160,015 ) 2,360 2,202 (155,453 ) Net cash provided by financing activities 77,388 — — 77,388 Net decrease in cash and cash equivalents (607 ) — — (607 ) Cash and cash equivalents, beginning of period 45,150 1 — 45,151 Cash and cash equivalents, end of period $ 44,543 $ 1 $ — $ 44,544 Condensed consolidating statement of cash flows For the three months ended March 31, 2018 (in thousands) Laredo Subsidiary Intercompany Consolidated Net cash provided by operating activities $ 140,247 $ 7,704 $ (1,480 ) $ 146,471 Capital expenditures and other, net (193,450 ) (7,704 ) 1,480 (199,674 ) Net cash used in financing activities (3,067 ) — — (3,067 ) Net decrease in cash and cash equivalents (56,270 ) — — (56,270 ) Cash and cash equivalents, beginning of period 112,158 1 — 112,159 Cash and cash equivalents, end of period $ 55,888 $ 1 $ — $ 55,889 |
Subsequent events
Subsequent events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events a. Senior Secured Credit Facility On April 30, 2019, pursuant to the regular semi-annual redetermination, the lenders decreased the borrowing base and aggregate elected commitment under the Senior Secured Credit Facility to $1.1 billion each. b. Litigation settlement On April 12, 2019, the Company finalized and received a favorable settlement of $42.5 million in connection with its damage claims asserted in a previously disclosed litigation matter relating to a breach and wrongful termination of a crude oil purchase agreement. The Company does not anticipate the receipt of further payments in connection with this matter as this settlement constituted a full and final satisfaction of the Company's claims. Given that this amount is considered a gain contingency, it was not recorded as income during the period ending March 31, 2019, or in any prior period. The Company intends to recognize this settlement amount as other non-operating income in its unaudited consolidated statement of operations for the quarter ending June 30, 2019. c. Derivatives Subsequent to March 31, 2019 , the Company completed a hedge restructuring by early terminating puts and collars and entered into new swaps. The Company paid a net termination amount of $5.4 million , that included both the full settlement of the deferred premiums associated with the early-terminated puts, partially offset by the value at the time of termination of the early-terminated puts and collars. The present value of these deferred premium liabilities, classified under Level 3 of the fair value hierarchy, upon their early termination was $7.2 million . See Note 10 in the 2018 Annual Report for information about the fair value hierarchy levels. The following table details the derivatives that were terminated: Aggregate volumes (Bbl) Weighted-average floor price ($/Bbl) Weighted-average ceiling price ($/Bbl) Contract period Oil puts 5,087,500 $ 46.03 $ — April 2019 - December 2019 Oil collars 1,134,600 $ 45.00 $ 76.13 January 2020 - December 2020 The following table summarizes open derivative positions as of March 31, 2019, for derivative terminations and trade activity through May 1, 2019, for the settlement periods presented: Remaining year 2019 Year 2020 Year 2021 Oil: Puts: Volume (Bbl) 962,500 366,000 — Weighted-average floor price ($/Bbl) $ 55.00 $ 45.00 $ — Volume with deferred premium (Bbl) 962,500 — — Weighted-average deferred premium price ($/Bbl) $ 4.39 $ — $ — Swaps: Volume (Bbl) 5,912,500 7,173,600 — Weighted-average price ($/Bbl) $ 61.31 $ 59.50 $ — Collars: Volume (Bbl) — — 912,500 Weighted-average floor price ($/Bbl) $ — $ — $ 45.00 Weighted-average ceiling price ($/Bbl) $ — $ — $ 71.00 Totals: Total volume with floor price (Bbl) 6,875,000 7,539,600 912,500 Weighted-average floor price ($/Bbl) $ 60.42 $ 58.79 $ 45.00 Total volume with ceiling price (Bbl) 5,912,500 7,173,600 912,500 Weighted-average ceiling price ($/Bbl) $ 61.31 $ 59.50 $ 71.00 TABLE CONTINUES ON NEXT PAGE Remaining year 2019 Year 2020 Year 2021 Basis Swaps: WTI Midland to WTI NYMEX: Volume (Bbl) 1,840,000 — — Weighted-average price ($/Bbl) $ (2.89 ) $ — $ — WTI Midland to WTI formula basis: Volume (Bbl) 552,000 — — Weighted-average price ($/Bbl) $ (4.37 ) $ — $ — WTI Houston to WTI Midland: Volume (Bbl) 910,000 — — Weighted-average price ($/Bbl) $ 7.30 $ — $ — NGL: Swaps - Purity Ethane: Volume (Bbl) 1,787,500 366,000 912,500 Weighted-average price ($/Bbl) $ 14.22 $ 13.60 $ 12.01 Swaps - Non-TET Propane: Volume (Bbl) 1,430,000 1,244,400 730,000 Weighted-average price ($/Bbl) $ 27.97 $ 26.58 $ 25.52 Swaps - Non-TET Normal Butane: Volume (Bbl) 550,000 439,200 255,500 Weighted-average price ($/Bbl) $ 30.73 $ 28.69 $ 27.72 Swaps - Non-TET Isobutane: Volume (Bbl) 137,500 109,800 67,525 Weighted-average price ($/Bbl) $ 31.08 $ 29.99 $ 28.79 Swaps - Non-TET Natural Gasoline: Volume (Bbl) 467,500 402,600 237,250 Weighted-average price ($/Bbl) $ 45.80 $ 45.15 $ 44.31 Total NGL volume (Bbl) 4,372,500 2,562,000 2,202,775 Natural gas: Henry Hub NYMEX Swaps: Volume (MMBtu) 29,425,000 23,790,000 14,052,500 Weighted-average price ($/MMBtu) $ 3.09 $ 2.72 $ 2.63 Basis Swaps: Volume (MMBtu) 29,425,000 32,574,000 23,360,000 Weighted-average price ($/MMBtu) $ (1.51 ) $ (0.76 ) $ (0.47 ) d. Workforce reduction On April 2, 2019, the Company announced the retirement of two of its Senior Officers. Additionally, on April 8, 2019 (the "Effective Date"), the Company committed to a company-wide reorganization effort (the "Plan") that includes a workforce reduction of approximately 20% , which included an Executive Officer. The reduction in workforce was communicated to employees on the Effective Date and implemented immediately, subject to certain administrative procedures. The Company's board of directors approved the Plan in response to recent market conditions and to reduce costs and better position the Company for the future. In connection with the retirements on April 2, 2019 and with the Plan, the Company estimates that it will incur an aggregate of approximately $12.0 million |
Organization and basis of pre_2
Organization and basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | b. Basis of presentation The unaudited consolidated financial statements were derived from the historical accounting records of the Company and reflect the historical financial position, results of operations and cash flows for the periods described herein. The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). All material intercompany transactions and account balances have been eliminated in the consolidation of accounts. The unaudited consolidated financial statements have not been audited by the Company's independent registered public accounting firm, except that the consolidated balance sheet as of December 31, 2018 is derived from audited consolidated financial statements. In the opinion of management, the unaudited consolidated financial statements reflect all necessary adjustments to present fairly the Company's financial position as of March 31, 2019 and results of operations and cash flows for each of the three months ended March 31, 2019 and 2018 . Certain disclosures have been condensed or omitted from the unaudited consolidated financial statements. Accordingly, the unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2018 Annual Report. Significant accounting policies See Note 2 in the 2018 Annual Report for discussion of significant accounting policies and Note 3 |
Use of estimates in the preparation of interim unaudited consolidated financial statements | Use of estimates in the preparation of interim unaudited consolidated financial statements The preparation of the unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the reported amounts of assets and liabilities and 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. Although management believes these estimates are reasonable, actual results could differ. For further information regarding the use of estimates and assumptions, see Note 2.b in the 2018 Annual Report, Note 3 pertaining to the Company's leases and Note 6.c |
Recently issued or adopted accounting pronouncements | Note 2—Recently issued or adopted accounting pronouncements The Company considers the applicability and impact of all accounting standard updates ("ASU") issued by the FASB. The discussion of the ASU listed below was determined to be meaningful to the Company's unaudited consolidated financial statements and footnotes during the three months ended March 31, 2019 . a. Leases On January 1, 2019, the Company adopted ASC 842 using the modified retrospective approach and applying the optional transition method as of the beginning of the period of adoption. Results for the period beginning after January 1, 2019 are presented under ASC 842, while prior periods are not adjusted and continue to be reported under ASC 840. The Company utilized the transition package of expedients to leases that commenced before the effective date. ASC 842 supersedes previous lease guidance in ASC 840, Leases ("ASC 840"). The core principle of the new guidance is that a lessee should recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term related to its leases. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election, by class of underlying asset, not to recognize lease assets and lease liabilities. See Note 3 |
Full cost | The Company excludes the costs directly associated with the acquisition and evaluation of unevaluated properties from the depletion calculation until it is determined whether or not proved reserves can be assigned to the properties. The Company capitalizes a portion of its interest costs to its unevaluated properties. Capitalized interest becomes a part of the cost of the unevaluated properties and is subject to depletion when proved reserves can be assigned to the associated properties. All items classified as unevaluated properties are assessed on a quarterly basis for possible impairment. The assessment includes consideration of the following factors, among others: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results and activity, the assignment of evaluated reserves and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion. The Company uses the full cost method of accounting for its oil and natural gas properties. Under this method, all acquisition, exploration and development costs, including certain related employee costs incurred for the purpose of exploring for or developing oil and natural gas properties, are capitalized and depleted on a composite unit-of-production method based on proved oil, NGL and natural gas reserves. Such amounts include the cost of drilling and equipping productive wells, dry hole costs, lease acquisition costs, delay rentals and other costs related to such activities. Costs, including related employee costs, associated with production and general corporate activities are expensed in the period incurred. Sales of oil and natural gas properties, whether or not being depleted currently, are accounted for as adjustments of capitalized costs, with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil, NGL and natural gas. |
Treasury stock | Treasury stock is recorded at cost, which includes incremental direct transaction costs, and is retired upon acquisition as a result (i) from share repurchases under the share repurchase program, (ii) from the withholding of shares of stock to satisfy tax withholding obligations that arise upon the lapse of restrictions on restricted stock awards and the exercise of stock options at the awardee's election and (iii) share repurchases to cover the cost of the exercise of stock options at the awardee's election. |
Stock-based compensation | The Laredo Petroleum, Inc. Omnibus Equity Incentive Plan (the "Equity Incentive Plan") provides for the granting of incentive awards in the form of restricted stock awards, stock option awards, performance share awards, performance unit awards and other awards. The Equity Incentive Plan provides for the issuance of up to 24,350,000 shares of Laredo's common stock. On March 20, 2019, the Company's compensation committee recommended, and the Company's board of directors adopted, subject to stockholder approval, an amendment (the "Second Amendment") to the Equity Incentive Plan to, among other things, increase the number of shares of common stock available for issuance under the Equity Incentive Plan by 5,500,000 shares, which would bring the total available shares to issue to 29,850,000 . The Company is seeking stockholder approval of the Second Amendment at its 2019 Annual Meeting of Stockholders on May 16, 2019. |
Net income per common share | Net income (loss) per common share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted-average common shares outstanding for the period. Diluted net income (loss) per common share reflects the potential dilution of non-vested restricted stock awards, outstanding stock option awards and non-vested performance share awards. See Note 6.c |
Revenue recognition | Oil, NGL and natural gas revenues are generally recognized at the point in time that control of the product is transferred to the customer. Midstream service revenues are generated through fees for products and services that need to be delivered by midstream infrastructure, including oil and liquids-rich natural gas gathering services as well as rig fuel, natural gas lift and |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease costs, terms and discount rates | Lease terms and discount rates The table below presents certain information related to the weighted-average remaining lease term and weighted-average discount rate for the Company's operating leases as of the date presented: March 31, 2019 Operating leases: Weighted-average remaining lease term 4.00 years Weighted-average discount rate 8.28 % The table below presents certain information related to the lease costs for the Company's operating leases for the period presented: (in thousands) Three months ended March 31, 2019 Components of total lease cost: Operating lease cost $ 3,528 Short-term lease cost 46,326 Variable lease cost 518 Sublease income (247 ) Total lease cost $ 50,125 |
Maturities of operating lease liabilities | Maturities of operating lease liabilities The table below reconciles the undiscounted cash flows for each of the first five years and the total remaining years to the operating lease liabilities recorded on the unaudited consolidated balance sheet as of the date presented: (in thousands) March 31, 2019 Operating leases: Remaining 2019 $ 12,260 2020 3,331 2021 3,029 2022 2,360 2023 1,252 Thereafter 4,243 Total minimum lease payments 26,475 Less: lease liability expense (4,278 ) Present value of future minimum lease payments 22,197 Less: current obligations under leases (10,896 ) Long-term lease obligations $ 11,301 |
Operating leases, future minimum rental payments | Disclosure for the period prior to adoption of ASC 842 The Company leases office space under operating leases expiring on various dates through 2027. The following table presents future minimum rental payments required: (in thousands) December 31, 2018 2019 $ 3,092 2020 3,179 2021 3,128 2022 2,560 2023 1,358 Thereafter 4,556 Total future minimum rental payments required $ 17,873 |
Property and equipment (Tables)
Property and equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | The following table presents the Company's property and equipment as of the dates presented: (in thousands) March 31, 2019 December 31, 2018 Evaluated oil and natural gas properties $ 6,951,343 $ 6,752,631 Less accumulated depletion and impairment (4,913,384 ) (4,854,017 ) Evaluated oil and natural gas properties, net 2,037,959 1,898,614 Unevaluated oil and natural gas properties not being depleted 92,467 130,957 Midstream service assets 175,681 172,308 Less accumulated depreciation and impairment (44,563 ) (42,063 ) Midstream service assets, net 131,118 130,245 Depreciable other fixed assets 45,591 45,431 Less accumulated depreciation and amortization (24,752 ) (23,871 ) Depreciable other fixed assets, net 20,839 21,560 Land 18,259 18,259 Total property and equipment, net $ 2,300,642 $ 2,199,635 |
Capitalized related employee costs incurred for the purpose of exploring for or developing oil and natural gas properties | The following table presents capitalized related employee costs incurred for the purpose of exploring for or developing oil and natural gas properties for the periods presented: Three months ended March 31, (in thousands) 2019 2018 Capitalized related employee costs $ 6,682 $ 6,529 |
Costs incurred in the acquisition, exploration and development of oil and natural gas properties | The following table presents costs incurred in the acquisition, exploration and development of oil and natural gas properties, with asset retirement obligations included in development costs, for the periods presented: Three months ended March 31, (in thousands) 2019 2018 Property acquisition costs: Evaluated $ — $ — Unevaluated — — Exploration costs 7,505 6,137 Development costs 152,717 149,038 Total costs incurred $ 160,222 $ 155,175 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes the net presentation of the Company's long-term debt and debt issuance costs on the unaudited consolidated balance sheets as of the dates presented: March 31, 2019 December 31, 2018 (in thousands) Long-term debt Debt issuance costs, net Long-term debt, net Long-term debt Debt issuance costs, net Long-term debt, net January 2022 Notes $ 450,000 $ (2,766 ) $ 447,234 $ 450,000 $ (3,010 ) $ 446,990 March 2023 Notes 350,000 (3,153 ) 346,847 350,000 (3,354 ) 346,646 Senior Secured Credit Facility (1) 270,000 — 270,000 190,000 — 190,000 Total $ 1,070,000 $ (5,919 ) $ 1,064,081 $ 990,000 $ (6,364 ) $ 983,636 ______________________________________________________________________________ (1) Debt issuance costs, net related to our Senior Secured Credit Facility of $6.6 million and $7.0 million as of March 31, 2019 and December 31, 2018 |
Stockholders' equity and Equi_2
Stockholders' equity and Equity Incentive Plan (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of restricted stock award activity | The following table reflects the restricted stock award activity for the three months ended March 31, 2019 : (in thousands, except for weighted-average grant-date fair value) Restricted stock awards Weighted-average (per award) Outstanding as of December 31, 2018 4,196 $ 9.91 Granted 5,986 $ 3.43 Forfeited (48 ) $ 6.25 Vested (1) (2,261 ) $ 10.05 Outstanding as of March 31, 2019 7,873 $ 4.96 _____________________________________________________________________________ (1) The total intrinsic value of vested restricted stock awards for the three months ended March 31, 2019 was $8.6 million |
Schedule of performance share and unit award activity | The following table reflects the performance share award activity for the three months ended March 31, 2019: (in thousands, except for weighted-average grant-date fair value) Performance share awards Weighted-average (per award) Outstanding as of December 31, 2018 3,436 $ 13.74 Vested (1) (1,503 ) $ 17.68 Outstanding as of March 31, 2019 1,933 $ 10.68 ______________________________________________________________________________ (1) The performance share awards granted on May 25, 2016 had a performance period of January 1, 2016 to December 31, 2018 and, as their market criteria were not satisfied, resulted in a TSR modifier of 0 three months ended March 31, 2019 : (in thousands) Performance unit awards Outstanding as of December 31, 2018 — Granted (1) 2,813 Outstanding as of March 31, 2019 2,813 ______________________________________________________________________________ (1) The amount potentially payable in cash at the end of the requisite service period for the performance unit awards granted on February 28, 2019 will be determined based on three criteria: (i) RTSR Performance Percentage, (ii) ATSR Appreciation and (iii) ROACE Percentage. The RTSR Performance Percentage, ATSR Appreciation and ROACE Percentage will be used to identify the "RTSR Factor," the "ATSR Factor" and the "ROACE Factor," respectively, which are used to compute the "Performance Multiple" and ultimately to determine the final value of each performance unit granted at the maturity date. In computing the Performance Multiple, the RTSR Factor is given a 25% weight, the ATSR Factor a 25% weight and the ROACE Factor a 50% |
Schedule of allocated share-based compensation costs | The following has been recorded to stock-based compensation expense for the periods presented: Three months ended March 31, (in thousands) 2019 2018 Restricted stock award compensation $ 5,323 $ 6,045 Stock option award compensation 818 1,069 Performance share award compensation 3,164 4,327 Total stock-based compensation, gross 9,305 11,441 Less amounts capitalized in evaluated oil and natural gas properties (1,899 ) (2,102 ) Total stock-based compensation, net $ 7,406 $ 9,339 Three months ended March 31, (in thousands) 2019 2018 Performance unit award compensation, gross $ 238 $ — Less amounts capitalized in evaluated oil and natural gas properties (46 ) — Total performance unit award compensation, net $ 192 $ — |
Schedule of assumptions used to estimate fair value | The assumptions used to estimate the fair value of the performance unit awards as of the date presented are as follows: March 31, 2019 (1) (.25) RTSR Factor + (.25) ATSR Factor fair value assumptions: Remaining performance period 2.76 years Risk-free interest rate (2) 2.20 % Dividend yield — % Expected volatility (3) 55.13 % Closing stock price on March 29, 2019 $ 3.09 Fair value per performance unit award (market criteria) $ 3.18 (.50) ROACE Factor fair value assumption: Closing stock price on March 29, 2019 $ 3.09 Fair value per performance unit award (performance criteria) $ 3.09 Combined fair value per performance unit award $ 3.14 ______________________________________________________________________________ (1) The $3.14 per unit fair value consists of a (i) $3.18 per unit fair value, determined utilizing a Monte Carlo simulation on March 31, 2019 , for the combined (.25) RTSR Factor and (.25) ATSR Factor and (ii) $3.09 per unit fair value for the (.50) ROACE Factor determined based on the closing price of the Company's common stock on the New York Stock Exchange on March 29, 2019 and based on a 100% estimated probability of payout to be awarded for the three-year performance period as of March 31, 2019 . (2) The risk-free interest rate was derived using a term-matched zero-coupon yield derived from the U.S. Treasury constant maturities yield curve on March 29, 2019. (3) |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of open positions and derivatives in place | The following table summarizes open derivative positions as of March 31, 2019, for derivatives that were entered into through March 31, 2019, for the settlement periods presented: Remaining year 2019 Year 2020 Year 2021 Oil: Puts: Volume (Bbl) 6,050,000 366,000 — Weighted-average floor price ($/Bbl) $ 47.45 $ 45.00 $ — Volume with deferred premium (Bbl) 3,575,000 — — Weighted-average deferred premium price ($/Bbl) $ 3.21 $ — $ — Swaps: Volume (Bbl) 495,000 695,400 — Weighted-average price ($/Bbl) $ 53.45 $ 52.18 $ — Collars: Volume (Bbl) — 1,134,600 912,500 Weighted-average floor price ($/Bbl) $ — $ 45.00 $ 45.00 Weighted-average ceiling price ($/Bbl) $ — $ 76.13 $ 71.00 Totals: Total volume with floor price (Bbl) 6,545,000 2,196,000 912,500 Weighted-average floor price ($/Bbl) $ 47.91 $ 47.27 $ 45.00 Total volume with ceiling price (Bbl) 495,000 1,830,000 912,500 Weighted-average ceiling price ($/Bbl) $ 53.45 $ 67.03 $ 71.00 Basis Swaps: WTI Midland to WTI NYMEX: Volume (Bbl) 1,840,000 — — Weighted-average price ($/Bbl) $ (2.89 ) $ — $ — WTI Midland to WTI formula basis: Volume (Bbl) 552,000 — — Weighted-average price ($/Bbl) $ (4.37 ) $ — $ — WTI Houston to WTI Midland: Volume (Bbl) 910,000 — — Weighted-average price ($/Bbl) $ 7.30 $ — $ — NGL: Swaps - Purity Ethane: Volume (Bbl) 1,787,500 366,000 912,500 Weighted-average price ($/Bbl) $ 14.22 $ 13.60 $ 12.01 Swaps - Non-TET Propane: Volume (Bbl) 1,430,000 1,244,400 730,000 Weighted-average price ($/Bbl) $ 27.97 $ 26.58 $ 25.52 Swaps - Non-TET Normal Butane: Volume (Bbl) 550,000 439,200 255,500 Weighted-average price ($/Bbl) $ 30.73 $ 28.69 $ 27.72 Swaps - Non-TET Isobutane: Volume (Bbl) 137,500 109,800 67,525 Weighted-average price ($/Bbl) $ 31.08 $ 29.99 $ 28.79 Swaps - Non-TET Natural Gasoline: Volume (Bbl) 467,500 402,600 237,250 Weighted-average price ($/Bbl) $ 45.80 $ 45.15 $ 44.31 TABLE CONTINUES ON NEXT PAGE Remaining year 2019 Year 2020 Year 2021 Total NGL volume (Bbl) 4,372,500 2,562,000 2,202,775 Natural gas: Henry Hub NYMEX Swaps: Volume (MMBtu) 29,425,000 23,790,000 14,052,500 Weighted-average price ($/MMBtu) $ 3.09 $ 2.72 $ 2.63 Basis Swaps: Volume (MMBtu) 29,425,000 32,574,000 23,360,000 Weighted-average price ($/MMBtu) $ (1.51 ) $ (0.76 ) $ (0.47 ) |
Fair value measurements (Tables
Fair value measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis | The following tables summarize the Company's derivatives' fair value hierarchy by commodity and current and noncurrent assets and liabilities on a gross basis and the net presentation included in "Derivatives" on the unaudited consolidated balance sheets as of the dates presented: (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the unaudited consolidated balance sheets As of March 31, 2019: Assets: Current: Oil derivatives $ — $ 4,911 $ — $ 4,911 $ (5,242 ) $ (331 ) NGL derivatives — 7,541 — 7,541 (6,210 ) 1,331 Natural gas derivatives — 19,694 — 19,694 (5,943 ) 13,751 Oil derivative deferred premiums — — — — (7,141 ) (7,141 ) Noncurrent: Oil derivatives $ — $ 2,432 $ — $ 2,432 $ (646 ) $ 1,786 NGL derivatives — 2,518 — 2,518 (1,506 ) 1,012 Natural gas derivatives — 3,446 — 3,446 (274 ) 3,172 Oil derivative deferred premiums — — — — — — Liabilities: Current: Oil derivatives $ — $ (11,996 ) $ — $ (11,996 ) $ 5,242 $ (6,754 ) NGL derivatives — (5,871 ) — (5,871 ) 6,210 339 Natural gas derivatives — (5,082 ) — (5,082 ) 5,943 861 Oil derivative deferred premiums — — (12,644 ) (12,644 ) 7,141 (5,503 ) Noncurrent: Oil derivatives $ — $ (2,991 ) $ — $ (2,991 ) $ 646 $ (2,345 ) NGL derivatives — (3,916 ) — (3,916 ) 1,506 (2,410 ) Natural gas derivatives — 918 — 918 274 1,192 Oil derivative deferred premiums — — — — — — Net derivative asset (liability) positions $ — $ 11,604 $ (12,644 ) $ (1,040 ) $ — $ (1,040 ) (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the unaudited consolidated balance sheets As of December 31, 2018: Assets: Current: Oil derivatives $ — $ 44,425 $ — $ 44,425 $ (7,907 ) $ 36,518 NGL derivatives — 1,974 — 1,974 — 1,974 Natural gas derivatives — 18,991 — 18,991 (3,267 ) 15,724 Oil derivative deferred premiums — — — — (14,381 ) (14,381 ) Noncurrent: Oil derivatives $ — $ 10,626 $ — $ 10,626 $ — $ 10,626 NGL derivatives — 1,024 — 1,024 — 1,024 Natural gas derivatives — 108 — 108 (728 ) (620 ) Oil derivative deferred premiums — — — — — — Liabilities: Current: Oil derivatives $ — $ (9,059 ) $ — $ (9,059 ) $ 7,907 $ (1,152 ) NGL derivatives — — — — — — Natural gas derivatives — (7,290 ) — (7,290 ) 3,267 (4,023 ) Oil derivative deferred premiums — — (16,565 ) (16,565 ) 14,381 (2,184 ) Noncurrent: Oil derivatives $ — $ — $ — $ — $ — $ — NGL derivatives — — — — — — Natural gas derivatives — (728 ) — (728 ) 728 — Oil derivative deferred premiums — — — — — — Net derivative asset (liability) positions $ — $ 60,071 $ (16,565 ) $ 43,506 $ — $ 43,506 |
Actual cash payments required for deferred premium contracts | The following table presents payments required for derivative deferred premiums as of March 31, 2019 for the periods presented: (in thousands) March 31, 2019 Remaining 2019 $ 11,486 2020 1,295 Total $ 12,781 |
Summary of changes in net assets classified as Level 3 measurements | A summary of the changes in net assets and liabilities classified as Level 3 measurements for the periods presented are as follows: Three months ended March 31, (in thousands) 2019 2018 Balance of Level 3 at beginning of period $ (16,565 ) $ (28,683 ) Change in net present value of derivative deferred premiums (1) (95 ) (211 ) Total purchases and settlements of derivative deferred premiums: Purchases — (5,422 ) Settlements 4,016 4,024 Balance of Level 3 at end of period $ (12,644 ) $ (30,292 ) ____________________________________________________________________________ (1) |
Schedule of carrying amount and fair value of debt instruments | The Company has not elected to account for its debt instruments at fair value. The following table presents the carrying amounts and fair values of the Company's debt as of the dates presented: March 31, 2019 December 31, 2018 (in thousands) Long-term Fair value (1) Long-term Fair value (1) January 2022 Notes $ 450,000 $ 412,313 $ 450,000 $ 402,885 March 2023 Notes 350,000 312,375 350,000 316,624 Senior Secured Credit Facility 270,000 270,112 190,000 190,054 Total $ 1,070,000 $ 994,800 $ 990,000 $ 909,563 ______________________________________________________________________________ (1) The fair values of the debt outstanding on the January 2022 Notes and the March 2023 Notes were determined using the March 31, 2019 and December 31, 2018 Level 1 fair value hierarchy quoted market price for each respective instrument. The fair value of the outstanding debt on the Senior Secured Credit Facility as of March 31, 2019 and December 31, 2018 was estimated utilizing the Level 2 fair value hierarchy pricing model for similar instruments. See Note 10 in the 2018 |
Net income (loss) per common _2
Net income (loss) per common share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted weighted-average common shares outstanding and net income (loss) per common share | The following table reflects the calculation of basic and diluted weighted-average common shares outstanding and net income (loss) per common share for the periods presented: Three months ended March 31, (in thousands, except for per share data) 2019 2018 Net income (loss) (numerator): Net income (loss)—basic and diluted $ (9,491 ) $ 86,520 Weighted-average common shares outstanding (denominator): Basic (1) 230,476 238,228 Dilutive non-vested restricted stock awards — 1,064 Dilutive outstanding stock option awards — 27 Diluted 230,476 239,319 Net income (loss) per common share: Basic $ (0.04 ) $ 0.36 Diluted $ (0.04 ) $ 0.36 _____________________________________________________________________________ (1) Weighted-average common shares outstanding used in the computation of basic and diluted net income (loss) per common share was computed taking into account share repurchases that occurred during the three months ended March 31, 2018. See Note 6.a |
Supplemental cash flow and no_2
Supplemental cash flow and non-cash information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of non-cash investing & financing and supplemental cash flow information | The following table presents supplemental cash flow and non-cash information: Three months ended March 31, (in thousands) 2019 2018 Supplemental cash flow information: Capitalized interest $ 242 $ 255 Supplemental non-cash investing information: Increase (decrease) in accrued capital expenditures $ 6,443 $ (43,336 ) Capitalized stock-based compensation in evaluated oil and natural gas properties $ 1,899 $ 2,102 Capitalized asset retirement costs $ 271 $ 130 Supplemental non-cash financing information: Increase in accrued stock repurchases $ — $ 4,761 The following table presents supplemental cash flow and non-cash information related to leases: (in thousands) Three months ended March 31, 2019 Supplemental cash paid for amounts included in the measurement of lease liabilities information: Operating cash flows for operating leases $ 3,564 Supplemental non-cash adjustments information: Right-of-use assets obtained in exchange for operating lease liabilities $ 22,090 |
Asset retirement obligations (T
Asset retirement obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of asset retirement obligation liability | The following table reconciles the Company's asset retirement obligation liability associated with tangible long-lived assets for the periods presented: Three months ended March 31, (in thousands) 2019 2018 Liability at beginning of period $ 56,882 $ 55,506 Liabilities added due to acquisitions, drilling, midstream service asset construction and other 271 130 Accretion expense 1,052 1,106 Liabilities settled due to plugging and abandonment or removed due to sale (447 ) (440 ) Liability at end of period $ 57,758 $ 56,302 |
Related party (Tables)
Related party (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The following table presents the operating lease liability related to H&P included in the unaudited consolidated balance sheet: (in thousands) March 31, 2019 Operating lease liabilities $ 7,900 The following table presents the capital expenditures for oil and natural gas properties paid to H&P included in the unaudited consolidated statements of cash flows: Three months ended March 31, (in thousands) 2019 2018 Capital expenditures for oil and natural gas properties $ 2,982 $ — |
Subsidiary guarantors (Tables)
Subsidiary guarantors (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed consolidating balance sheet | Condensed consolidating balance sheet March 31, 2019 (in thousands) Laredo Subsidiary Intercompany Consolidated Accounts receivable, net $ 94,635 $ 12,885 $ — $ 107,520 Other current assets 63,836 1,374 — 65,210 Oil and natural gas properties, net 2,145,399 9,076 (24,049 ) 2,130,426 Midstream service assets, net — 131,118 — 131,118 Other fixed assets, net 39,061 37 — 39,098 Investment in subsidiaries 135,199 — (135,199 ) — Other noncurrent assets, net 37,245 4,172 — 41,417 Total assets $ 2,515,375 $ 158,662 $ (159,248 ) $ 2,514,789 Accounts payable and accrued liabilities $ 57,291 $ 19,353 $ — $ 76,644 Other current liabilities 125,377 1,601 — 126,978 Long-term debt, net 1,064,081 — — 1,064,081 Other noncurrent liabilities 73,145 2,509 — 75,654 Total stockholders' equity 1,195,481 135,199 (159,248 ) 1,171,432 Total liabilities and stockholders' equity $ 2,515,375 $ 158,662 $ (159,248 ) $ 2,514,789 Condensed consolidating balance sheet December 31, 2018 (in thousands) Laredo Subsidiary Intercompany Consolidated Accounts receivable, net $ 83,424 $ 10,897 $ — $ 94,321 Other current assets 97,045 1,386 — 98,431 Oil and natural gas properties, net 2,043,009 9,113 (22,551 ) 2,029,571 Midstream service assets, net — 130,245 — 130,245 Other fixed assets, net 39,751 68 — 39,819 Investment in subsidiaries 128,380 — (128,380 ) — Other noncurrent assets, net 23,783 4,135 — 27,918 Total assets $ 2,415,392 $ 155,844 $ (150,931 ) $ 2,420,305 Accounts payable and accrued liabilities $ 54,167 $ 15,337 $ — $ 69,504 Other current liabilities 121,297 9,664 — 130,961 Long-term debt, net 983,636 — — 983,636 Other noncurrent liabilities 59,511 2,463 — 61,974 Total stockholders' equity 1,196,781 128,380 (150,931 ) 1,174,230 Total liabilities and stockholders' equity $ 2,415,392 $ 155,844 $ (150,931 ) $ 2,420,305 |
Schedule of condensed consolidating statement of operations | Condensed consolidating statement of operations For the three months ended March 31, 2019 (in thousands) Laredo Subsidiary Intercompany Consolidated Total revenues $ 173,521 $ 54,332 $ (18,906 ) $ 208,947 Total costs and expenses 119,735 52,223 (17,408 ) 154,550 Operating income 53,786 2,109 (1,498 ) 54,397 Interest expense (15,547 ) — — (15,547 ) Other non-operating income (expense), net (46,328 ) 93 (2,202 ) (48,437 ) Income (loss) before income taxes (8,089 ) 2,202 (3,700 ) (9,587 ) Total income tax benefit 96 — — 96 Net income (loss) $ (7,993 ) $ 2,202 $ (3,700 ) $ (9,491 ) Condensed consolidating statement of operations For the three months ended March 31, 2018 (in thousands) Laredo Subsidiary Intercompany Consolidated Total revenues $ 197,825 $ 76,300 $ (14,429 ) $ 259,696 Total costs and expenses 105,688 74,564 (13,748 ) 166,504 Operating income 92,137 1,736 (681 ) 93,192 Interest expense (13,518 ) — — (13,518 ) Other non-operating income (expense), net 8,582 (256 ) (1,480 ) 6,846 Income before income taxes 87,201 1,480 (2,161 ) 86,520 Total income tax — — — — Net income $ 87,201 $ 1,480 $ (2,161 ) $ 86,520 |
Schedule of condensed consolidating statement of cash flows | Condensed consolidating statement of cash flows For the three months ended March 31, 2019 (in thousands) Laredo Subsidiary Intercompany Consolidated Net cash provided by (used in) operating activities $ 82,020 $ (2,360 ) $ (2,202 ) $ 77,458 Capital expenditures and other, net (160,015 ) 2,360 2,202 (155,453 ) Net cash provided by financing activities 77,388 — — 77,388 Net decrease in cash and cash equivalents (607 ) — — (607 ) Cash and cash equivalents, beginning of period 45,150 1 — 45,151 Cash and cash equivalents, end of period $ 44,543 $ 1 $ — $ 44,544 Condensed consolidating statement of cash flows For the three months ended March 31, 2018 (in thousands) Laredo Subsidiary Intercompany Consolidated Net cash provided by operating activities $ 140,247 $ 7,704 $ (1,480 ) $ 146,471 Capital expenditures and other, net (193,450 ) (7,704 ) 1,480 (199,674 ) Net cash used in financing activities (3,067 ) — — (3,067 ) Net decrease in cash and cash equivalents (56,270 ) — — (56,270 ) Cash and cash equivalents, beginning of period 112,158 1 — 112,159 Cash and cash equivalents, end of period $ 55,888 $ 1 $ — $ 55,889 |
Subsequent events (Tables)
Subsequent events (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Derivatives terminated | The following table details the derivatives that were terminated: Aggregate volumes (Bbl) Weighted-average floor price ($/Bbl) Weighted-average ceiling price ($/Bbl) Contract period Oil puts 5,087,500 $ 46.03 $ — April 2019 - December 2019 Oil collars 1,134,600 $ 45.00 $ 76.13 January 2020 - December 2020 |
Schedule of derivative instruments | The following table summarizes open derivative positions as of March 31, 2019, for derivative terminations and trade activity through May 1, 2019, for the settlement periods presented: Remaining year 2019 Year 2020 Year 2021 Oil: Puts: Volume (Bbl) 962,500 366,000 — Weighted-average floor price ($/Bbl) $ 55.00 $ 45.00 $ — Volume with deferred premium (Bbl) 962,500 — — Weighted-average deferred premium price ($/Bbl) $ 4.39 $ — $ — Swaps: Volume (Bbl) 5,912,500 7,173,600 — Weighted-average price ($/Bbl) $ 61.31 $ 59.50 $ — Collars: Volume (Bbl) — — 912,500 Weighted-average floor price ($/Bbl) $ — $ — $ 45.00 Weighted-average ceiling price ($/Bbl) $ — $ — $ 71.00 Totals: Total volume with floor price (Bbl) 6,875,000 7,539,600 912,500 Weighted-average floor price ($/Bbl) $ 60.42 $ 58.79 $ 45.00 Total volume with ceiling price (Bbl) 5,912,500 7,173,600 912,500 Weighted-average ceiling price ($/Bbl) $ 61.31 $ 59.50 $ 71.00 TABLE CONTINUES ON NEXT PAGE Remaining year 2019 Year 2020 Year 2021 Basis Swaps: WTI Midland to WTI NYMEX: Volume (Bbl) 1,840,000 — — Weighted-average price ($/Bbl) $ (2.89 ) $ — $ — WTI Midland to WTI formula basis: Volume (Bbl) 552,000 — — Weighted-average price ($/Bbl) $ (4.37 ) $ — $ — WTI Houston to WTI Midland: Volume (Bbl) 910,000 — — Weighted-average price ($/Bbl) $ 7.30 $ — $ — NGL: Swaps - Purity Ethane: Volume (Bbl) 1,787,500 366,000 912,500 Weighted-average price ($/Bbl) $ 14.22 $ 13.60 $ 12.01 Swaps - Non-TET Propane: Volume (Bbl) 1,430,000 1,244,400 730,000 Weighted-average price ($/Bbl) $ 27.97 $ 26.58 $ 25.52 Swaps - Non-TET Normal Butane: Volume (Bbl) 550,000 439,200 255,500 Weighted-average price ($/Bbl) $ 30.73 $ 28.69 $ 27.72 Swaps - Non-TET Isobutane: Volume (Bbl) 137,500 109,800 67,525 Weighted-average price ($/Bbl) $ 31.08 $ 29.99 $ 28.79 Swaps - Non-TET Natural Gasoline: Volume (Bbl) 467,500 402,600 237,250 Weighted-average price ($/Bbl) $ 45.80 $ 45.15 $ 44.31 Total NGL volume (Bbl) 4,372,500 2,562,000 2,202,775 Natural gas: Henry Hub NYMEX Swaps: Volume (MMBtu) 29,425,000 23,790,000 14,052,500 Weighted-average price ($/MMBtu) $ 3.09 $ 2.72 $ 2.63 Basis Swaps: Volume (MMBtu) 29,425,000 32,574,000 23,360,000 Weighted-average price ($/MMBtu) $ (1.51 ) $ (0.76 ) $ (0.47 ) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 19,035 | $ 0 | |
Operating lease liabilities | $ 22,197 | ||
Average working interest | 97.00% | ||
Total future minimum rental payments required | 5,900 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 22,100 | ||
Operating lease liabilities | $ 25,300 | ||
Deferred lease liabilities | $ 3,200 |
Leases - Lease costs (Details)
Leases - Lease costs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Amortization of operating lease right-of-use assets | $ 3,528 |
Short-term lease cost | 46,326 |
Variable lease cost | 518 |
Sublease income | (247) |
Total lease cost | $ 50,125 |
Leases - Lease terms and discou
Leases - Lease terms and discount rates (Details) | Mar. 31, 2019 |
Operating leases: | |
Weighted-average remaining lease term | 4 years |
Weighted-average discount rate | 8.28% |
Leases - Maturities of operatin
Leases - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating leases: | ||
Remaining 2019 | $ 12,260 | |
2020 | 3,331 | |
2021 | 3,029 | |
2022 | 2,360 | |
2023 | 1,252 | |
Thereafter | 4,243 | |
Total minimum lease payments | 26,475 | |
Less: lease liability expense | (4,278) | |
Operating lease liabilities | 22,197 | |
Less: current obligations under leases | 10,896 | $ 0 |
Long-term lease obligations | $ 11,301 | $ 0 |
Leases - Disclosure for the per
Leases - Disclosure for the period prior to adoption of ASC 842 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 3,092 |
2020 | 3,179 |
2021 | 3,128 |
2022 | 2,560 |
2023 | 1,358 |
Thereafter | 4,556 |
Total future minimum rental payments required | $ 17,873 |
Property and equipment - Compan
Property and equipment - Company property and equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Evaluated oil and natural gas properties | $ 6,951,343 | $ 6,752,631 |
Less accumulated depletion and impairment | (4,913,384) | (4,854,017) |
Evaluated oil and natural gas properties, net | 2,037,959 | 1,898,614 |
Unevaluated oil and natural gas properties not being depleted | 92,467 | 130,957 |
Property and equipment, net | 2,300,642 | 2,199,635 |
Midstream service assets | ||
Property, Plant and Equipment [Line Items] | ||
Midstream service assets | 175,681 | 172,308 |
Less accumulated depreciation and impairment | (44,563) | (42,063) |
Property and equipment, net | 131,118 | 130,245 |
Depreciable other fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable other fixed assets | 45,591 | 45,431 |
Less accumulated depreciation and impairment | (24,752) | (23,871) |
Property and equipment, net | 20,839 | 21,560 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable other fixed assets | $ 18,259 | $ 18,259 |
Property and equipment - Other
Property and equipment - Other property and equipment information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)$ / Boe | Mar. 31, 2018USD ($)$ / Boe | |
Property, Plant and Equipment [Abstract] | ||
Depletion expense (in dollars per BOE) | $ / Boe | 8.76 | 7.34 |
Capitalized related employee costs | $ | $ 6,682 | $ 6,529 |
Property and equipment - Costs
Property and equipment - Costs incurred in the acquisition, exploration and development of oil and natural gas properties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property acquisition costs: | ||
Evaluated | $ 0 | $ 0 |
Unevaluated | 0 | 0 |
Exploration costs | 7,505 | 6,137 |
Development costs | 152,717 | 149,038 |
Total costs incurred | $ 160,222 | $ 155,175 |
Debt - March 2023 Notes (Detail
Debt - March 2023 Notes (Details) - Senior Notes - March 2023 Notes | Mar. 18, 2015USD ($) |
Debt Instrument [Line Items] | |
Face amount of debt | $ 350,000,000 |
Interest rate (as a percent) | 6.25% |
From March 15, 2018 until March 15, 2021 | |
Debt Instrument [Line Items] | |
Debt call price percentage | 103.125% |
On or After March 15, 2021 | |
Debt Instrument [Line Items] | |
Debt call price percentage | 100.00% |
Debt - January 2022 Notes (Deta
Debt - January 2022 Notes (Details) - Senior Notes - January 2022 Notes | Jan. 23, 2014USD ($) |
Debt Instrument [Line Items] | |
Face amount of debt | $ 450,000,000 |
Interest rate (as a percent) | 5.625% |
From January 15, 2017 until January 15, 2020 | |
Debt Instrument [Line Items] | |
Debt call price percentage | 101.406% |
On or After January 15, 2020 | |
Debt Instrument [Line Items] | |
Debt call price percentage | 100.00% |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facility (Details) - Secured debt - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Early maturity date description | 90 years | |
Maximum borrowing capacity | $ 2,000,000,000 | |
Current borrowing capacity | 1,300,000,000 | |
Aggregate elected commitment | 1,200,000,000 | |
Amount outstanding | $ 270,000,000 | |
Credit facility, interest rate at period end (as a percent) | 3.75% | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 80,000,000 | |
Letters of credit outstanding | $ 14,700,000 | $ 14,700,000 |
Debt - Long-term debt, net (Det
Debt - Long-term debt, net (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,070,000 | $ 990,000 |
Debt issuance costs, net | (5,919) | (6,364) |
Long-term debt, net | 1,064,081 | 983,636 |
Senior Notes | January 2022 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 450,000 | 450,000 |
Debt issuance costs, net | (2,766) | (3,010) |
Long-term debt, net | 447,234 | 446,990 |
Senior Notes | March 2023 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 350,000 | 350,000 |
Debt issuance costs, net | (3,153) | (3,354) |
Long-term debt, net | 346,847 | 346,646 |
Secured debt | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 270,000 | 190,000 |
Debt issuance costs, net | 0 | 0 |
Long-term debt, net | 270,000 | 190,000 |
Secured debt | Senior Secured Credit Facility | Other noncurrent assets, net | ||
Debt Instrument [Line Items] | ||
Debt issuance costs related to line of credit arrangements | $ 6,600 | $ 7,000 |
Stockholders' equity and Equi_3
Stockholders' equity and Equity Incentive Plan - Share repurchase program (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Feb. 28, 2018 | |
Equity [Abstract] | |||
Share repurchase program, authorized amount | $ 200,000,000 | ||
Shares repurchased (in shares) | 0 | 11,048,742 | |
Weighted-average price per repurchased share (in dollars per share) | $ 8.78 | ||
Shares repurchased and retired, value | $ 97,100,000 |
Stockholders' equity and Equi_4
Stockholders' equity and Equity Incentive Plan - Equity Incentive Plan (Details) - Equity Incentive Plan - shares | May 16, 2019 | Mar. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 24,350,000 | |
Scenario, Forecast | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 29,850,000 | |
Increase to number of shares authorized for issuance | 5,500,000 |
Stockholders' equity and Equi_5
Stockholders' equity and Equity Incentive Plan - Restricted stock awards (Details) - Restricted stock awards $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation not yet recognized | $ 34.3 |
Stock-based compensation not yet recognized, period for recognition (in years) | 2 years 4 months 2 days |
Vesting Alternative One, One Year From Grant Date | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.00% |
Vesting Alternative One, Two Years From Grant Date | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.00% |
Vesting Alternative One, Three Years From Grant Date | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 34.00% |
Stockholders' equity and Equi_6
Stockholders' equity and Equity Incentive Plan - Schedule of restricted stock award activity (Details) - Restricted stock awards $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Restricted stock awards | |
Outstanding at the beginning of the period (in shares) | shares | 4,196 |
Granted (in shares) | shares | 5,986 |
Forfeited (in shares) | shares | (48) |
Vested (in shares) | shares | (2,261) |
Outstanding at the end of the period (in shares) | shares | 7,873 |
Weighted-average grant-date fair value (per award) | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 9.91 |
Granted (in dollars per share) | $ / shares | 3.43 |
Forfeited (in dollars per share) | $ / shares | 6.25 |
Vested (in dollars per share) | $ / shares | 10.05 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 4.96 |
Equity instruments other than options, aggregate intrinsic value, vested | $ | $ 8.6 |
Stockholders' equity and Equi_7
Stockholders' equity and Equity Incentive Plan - Stock option awards (Details) - Stock option awards $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)anniversaryinstallment$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of installments over which awards vest and are exercisable | installment | 4 |
Number of anniversaries over which awards vest and are exercisable | anniversary | 4 |
Number of options outstanding (in shares) | shares | 2,466,022 |
Options outstanding, weighted-average exercise price (in dollars per share) | $ / shares | $ 12.64 |
Options outstanding, weighted-average remaining contractual term | 3 years 18 days |
Requisite service period of the awards | 4 years |
Stock-based compensation, not yet recognized, stock options | $ | $ 3 |
Stock-based compensation not yet recognized, period for recognition (in years) | 1 year 4 months 6 days |
Stockholders' equity and Equi_8
Stockholders' equity and Equity Incentive Plan - Performance share awards (Details) - Performance share awards $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation not yet recognized | $ 9.1 |
Stock-based compensation not yet recognized, period for recognition (in years) | 1 year 6 months 21 days |
February 17, 2017 and February 16, 2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Requisite service period of the awards | 3 years |
May 25, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
TSR Modifier | 0 |
Stockholders' equity and Equi_9
Stockholders' equity and Equity Incentive Plan - Performance share award activity (Details) - Performance share awards shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Performance unit awards | |
Outstanding at the beginning of the period (in shares) | shares | 3,436 |
Vested (in shares) | shares | (1,503) |
Outstanding at the end of the period (in shares) | shares | 1,933 |
Weighted-average grant-date fair value (per award) | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 13.74 |
Vested (in dollars per share) | $ / shares | 17.68 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 10.68 |
Stockholders' equity and Equ_10
Stockholders' equity and Equity Incentive Plan - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation, gross | $ 9,305 | $ 11,441 |
Less amounts capitalized in evaluated oil and natural gas properties | (1,899) | (2,102) |
Total stock-based compensation, net | 7,406 | 9,339 |
Restricted stock award compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation, gross | 5,323 | 6,045 |
Stock option award compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation, gross | 818 | 1,069 |
Performance share award compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation, gross | $ 3,164 | $ 4,327 |
Stockholders' equity and Equ_11
Stockholders' equity and Equity Incentive Plan - Performance unit awards (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Performance share awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance unit award compensation not yet recognized | $ 9.1 |
Performance unit award compensation not yet recognized, period for recognition (in years) | 1 year 6 months 21 days |
February 28, 2019 | Performance Unit Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Requisite service period of the awards | 3 years |
Performance unit award compensation not yet recognized | $ 8.2 |
Performance unit award compensation not yet recognized, period for recognition (in years) | 2 years 11 months 1 day |
Stockholders' equity and Equ_12
Stockholders' equity and Equity Incentive Plan - Performance unit award activity (Details) - Performance Unit Awards shares in Thousands | 3 Months Ended |
Mar. 31, 2019shares | |
Performance unit awards | |
Outstanding at the end of the period (in shares) | 2,813 |
Granted (in shares) | 2,813 |
Outstanding at the beginning of the period (in shares) | 0 |
February 28, 2019 | |
Performance unit awards | |
RTSR Factor weight | 25.00% |
ATSR Factor weight | 25.00% |
ROACE Factor weight | 50.00% |
Stockholders' equity and Equ_13
Stockholders' equity and Equity Incentive Plan - Assumptions used to estimate fair value of performance unit awards (Details) - February 28, 2019 | 3 Months Ended |
Mar. 31, 2019$ / shares | |
Performance Unit Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 3.14 |
Performance unit awards with market criteria | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining performance period | 2 years 9 months 3 days |
Risk-free interest rate | 2.20% |
Dividend yield | 0.00% |
Expected volatility | 55.13% |
Closing stock price on March 29, 2019 | $ 3.09 |
Granted (in dollars per share) | 3.18 |
Performance unit awards with performance criteria | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Closing stock price on March 29, 2019 | 3.09 |
Granted (in dollars per share) | $ 3.09 |
Estimated probability of payout to be awarded | 100.00% |
Stockholders' equity and Equ_14
Stockholders' equity and Equity Incentive Plan - Performance unit award compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation, gross | $ 9,305 | $ 11,441 |
Less amounts capitalized in evaluated oil and natural gas properties | (1,899) | (2,102) |
Total stock-based compensation, net | 7,406 | 9,339 |
Performance Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation, gross | 238 | 0 |
Less amounts capitalized in evaluated oil and natural gas properties | (46) | 0 |
Total stock-based compensation, net | $ 192 | $ 0 |
Derivatives (Details)
Derivatives (Details) - Scenario, Forecast - Not designated as hedges | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2019BoeMMBTU$ / MMBTU$ / bbl | Dec. 31, 2021BoeMMBTU$ / MMBTU$ / bbl | Dec. 31, 2020BoeMMBTU$ / MMBTU$ / bbl | |
Put Instrument 1 | Oil derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 6,050,000 | 0 | 366,000 |
Weighted-average ($/Bbl) | $ / bbl | 47.45 | 0 | 45 |
Put Instrument 2 | Oil derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 3,575,000 | 0 | 0 |
Weighted-average ($/Bbl) | $ / bbl | 3.21 | 0 | 0 |
Swap | Oil derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 495,000 | 695,400 | |
Weighted-average ($/Bbl) | $ / bbl | 53.45 | 52.18 | |
Swap | Natural gas derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | MMBTU | 29,425,000 | 14,052,500 | 23,790,000 |
Weighted-average ($/Bbl) | $ / MMBTU | 3.09 | 2.63 | 2.72 |
Swap | Ethane | NGL derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 1,787,500 | 912,500 | 366,000 |
Weighted-average ($/Bbl) | $ / bbl | 14.22 | 12.01 | 13.60 |
Swap | Propane | NGL derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 1,430,000 | 730,000 | 1,244,400 |
Weighted-average ($/Bbl) | $ / bbl | 27.97 | 25.52 | 26.58 |
Swap | Normal Butane | NGL derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 550,000 | 255,500 | 439,200 |
Weighted-average ($/Bbl) | $ / bbl | 30.73 | 27.72 | 28.69 |
Swap | Isobutane | NGL derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 137,500 | 67,525 | 109,800 |
Weighted-average ($/Bbl) | $ / bbl | 31.08 | 28.79 | 29.99 |
Swap | Natural Gasoline | NGL derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 467,500 | 237,250 | 402,600 |
Weighted-average ($/Bbl) | $ / bbl | 45.80 | 44.31 | 45.15 |
Collar | Oil derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 0 | 912,500 | 1,134,600 |
Collar | Floor | Oil derivatives | |||
Derivative [Line Items] | |||
Weighted-average ($/Bbl) | $ / bbl | 0 | 45 | 45 |
Collar | Ceiling | Oil derivatives | |||
Derivative [Line Items] | |||
Weighted-average ($/Bbl) | $ / bbl | 0 | 71 | 76.13 |
Commodity | NGL derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 4,372,500 | 2,202,775 | 2,562,000 |
Commodity | Floor | Oil derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 6,545,000 | 912,500 | 2,196,000 |
Weighted-average ($/Bbl) | $ / bbl | 47.91 | 45 | 47.27 |
Commodity | Ceiling | Oil derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 495,000 | 912,500 | 1,830,000 |
Weighted-average ($/Bbl) | $ / bbl | 53.45 | 71 | 67.03 |
Basis Swap | Oil derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 1,840,000 | 0 | 0 |
Weighted-average ($/Bbl) | $ / bbl | (2.89) | 0 | 0 |
Basis Swap 2 | Oil derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 552,000 | 0 | 0 |
Weighted-average ($/Bbl) | $ / bbl | (4.37) | 0 | 0 |
Basis Swap 3 | Oil derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | Boe | 910,000 | 0 | 0 |
Weighted-average ($/Bbl) | $ / bbl | 7.30 | 0 | 0 |
Basis Swap 4 | Natural gas derivatives | |||
Derivative [Line Items] | |||
Volume (Bbl) | MMBTU | 29,425,000 | 23,360,000 | 32,574,000 |
Weighted-average ($/Bbl) | $ / MMBTU | (1.51) | (0.47) | (0.76) |
Fair value measurements - Fair
Fair value measurements - Fair value hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Derivative asset, current | $ 7,610 | $ 39,835 |
Derivative asset, noncurrent | 5,970 | 11,030 |
Liabilities: | ||
Derivative liability, current | (11,057) | (7,359) |
Derivative liability, noncurrent | (3,563) | 0 |
Net derivative asset (liability) positions | (1,040) | 43,506 |
Oil derivatives | Commodity derivatives | ||
Assets: | ||
Derivative asset, current | (331) | 36,518 |
Derivative asset, noncurrent | 1,786 | 10,626 |
Liabilities: | ||
Derivative liability, current | (6,754) | (1,152) |
Derivative liability, noncurrent | (2,345) | 0 |
Oil derivatives | Deferred premiums | ||
Assets: | ||
Derivative asset, current | (7,141) | (14,381) |
Derivative asset, noncurrent | 0 | 0 |
Liabilities: | ||
Derivative liability, current | (5,503) | (2,184) |
Derivative liability, noncurrent | 0 | 0 |
NGL derivatives | Commodity derivatives | ||
Assets: | ||
Derivative asset, current | 1,331 | 1,974 |
Derivative asset, noncurrent | 1,012 | 1,024 |
Liabilities: | ||
Derivative liability, current | 339 | 0 |
Derivative liability, noncurrent | (2,410) | 0 |
Natural gas derivatives | Commodity derivatives | ||
Assets: | ||
Derivative asset, current | 13,751 | 15,724 |
Derivative asset, noncurrent | 3,172 | (620) |
Liabilities: | ||
Derivative liability, current | 861 | (4,023) |
Derivative liability, noncurrent | 1,192 | 0 |
Current Assets | Oil derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 4,911 | 44,425 |
Amounts offset | (5,242) | (7,907) |
Current Assets | Oil derivatives | Deferred premiums | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Amounts offset | (7,141) | (14,381) |
Current Assets | NGL derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 7,541 | 1,974 |
Amounts offset | (6,210) | 0 |
Current Assets | Natural gas derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 19,694 | 18,991 |
Amounts offset | (5,943) | (3,267) |
Noncurrent Assets | Oil derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 2,432 | 10,626 |
Amounts offset | (646) | 0 |
Noncurrent Assets | Oil derivatives | Deferred premiums | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Amounts offset | 0 | 0 |
Noncurrent Assets | NGL derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 2,518 | 1,024 |
Amounts offset | (1,506) | 0 |
Noncurrent Assets | Natural gas derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 3,446 | 108 |
Amounts offset | (274) | (728) |
Current Liabilities | Oil derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | (11,996) | (9,059) |
Amounts offset | 5,242 | 7,907 |
Current Liabilities | Oil derivatives | Deferred premiums | ||
Liabilities: | ||
Derivative liabilities before netting | (12,644) | (16,565) |
Amounts offset | 7,141 | 14,381 |
Current Liabilities | NGL derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | (5,871) | 0 |
Amounts offset | 6,210 | 0 |
Current Liabilities | Natural gas derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | (5,082) | (7,290) |
Amounts offset | 5,943 | 3,267 |
Noncurrent Liabilities | Oil derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | (2,991) | 0 |
Amounts offset | 646 | 0 |
Noncurrent Liabilities | Oil derivatives | Deferred premiums | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Amounts offset | 0 | 0 |
Noncurrent Liabilities | NGL derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | (3,916) | 0 |
Amounts offset | 1,506 | 0 |
Noncurrent Liabilities | Natural gas derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 918 | (728) |
Amounts offset | 274 | 728 |
Level 1 | ||
Liabilities: | ||
Net derivative asset (liability) positions | 0 | 0 |
Level 1 | Current Assets | Oil derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 1 | Current Assets | Oil derivatives | Deferred premiums | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 1 | Current Assets | NGL derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 1 | Current Assets | Natural gas derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 1 | Noncurrent Assets | Oil derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 1 | Noncurrent Assets | Oil derivatives | Deferred premiums | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 1 | Noncurrent Assets | NGL derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 1 | Noncurrent Assets | Natural gas derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 1 | Current Liabilities | Oil derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 1 | Current Liabilities | Oil derivatives | Deferred premiums | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 1 | Current Liabilities | NGL derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 1 | Current Liabilities | Natural gas derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 1 | Noncurrent Liabilities | Oil derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 1 | Noncurrent Liabilities | Oil derivatives | Deferred premiums | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 1 | Noncurrent Liabilities | NGL derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 1 | Noncurrent Liabilities | Natural gas derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 2 | ||
Liabilities: | ||
Net derivative asset (liability) positions | 11,604 | 60,071 |
Level 2 | Current Assets | Oil derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 4,911 | 44,425 |
Level 2 | Current Assets | Oil derivatives | Deferred premiums | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 2 | Current Assets | NGL derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 7,541 | 1,974 |
Level 2 | Current Assets | Natural gas derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 19,694 | 18,991 |
Level 2 | Noncurrent Assets | Oil derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 2,432 | 10,626 |
Level 2 | Noncurrent Assets | Oil derivatives | Deferred premiums | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 2 | Noncurrent Assets | NGL derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 2,518 | 1,024 |
Level 2 | Noncurrent Assets | Natural gas derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 3,446 | 108 |
Level 2 | Current Liabilities | Oil derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | (11,996) | (9,059) |
Level 2 | Current Liabilities | Oil derivatives | Deferred premiums | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 2 | Current Liabilities | NGL derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | (5,871) | 0 |
Level 2 | Current Liabilities | Natural gas derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | (5,082) | (7,290) |
Level 2 | Noncurrent Liabilities | Oil derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | (2,991) | 0 |
Level 2 | Noncurrent Liabilities | Oil derivatives | Deferred premiums | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 2 | Noncurrent Liabilities | NGL derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | (3,916) | 0 |
Level 2 | Noncurrent Liabilities | Natural gas derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 918 | (728) |
Level 3 | ||
Liabilities: | ||
Net derivative asset (liability) positions | (12,644) | (16,565) |
Level 3 | Current Assets | Oil derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 3 | Current Assets | Oil derivatives | Deferred premiums | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 3 | Current Assets | NGL derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 3 | Current Assets | Natural gas derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 3 | Noncurrent Assets | Oil derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 3 | Noncurrent Assets | Oil derivatives | Deferred premiums | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 3 | Noncurrent Assets | NGL derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 3 | Noncurrent Assets | Natural gas derivatives | Commodity derivatives | ||
Assets: | ||
Derivative assets before netting | 0 | 0 |
Level 3 | Current Liabilities | Oil derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 3 | Current Liabilities | Oil derivatives | Deferred premiums | ||
Liabilities: | ||
Derivative liabilities before netting | (12,644) | (16,565) |
Level 3 | Current Liabilities | NGL derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 3 | Current Liabilities | Natural gas derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 3 | Noncurrent Liabilities | Oil derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 3 | Noncurrent Liabilities | Oil derivatives | Deferred premiums | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 3 | Noncurrent Liabilities | NGL derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | 0 | 0 |
Level 3 | Noncurrent Liabilities | Natural gas derivatives | Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities before netting | $ 0 | $ 0 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2018USD ($) | Mar. 31, 2019 | |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Acquisitions of oil and natural gas properties | $ 0 | |
Measurement input, discount rate | Recurring | Level 3 | Deferred premiums | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, measurement input | 0.0231 | |
Measurement input, discount rate | Recurring | Level 3 | Deferred premiums | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, measurement input | 0.0332 | |
Measurement input, discount rate | Recurring | Level 3 | Deferred premiums | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, measurement input | 0.0274 | |
Materials and Supplies | Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment expense | 0 | |
Long-Lived Assets | Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment expense | $ 0 |
Fair value measurements - Cash
Fair value measurements - Cash payments required for deferred premium contracts (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Remaining 2019 | $ 11,486 |
2020 | 1,295 |
Total | $ 12,781 |
Fair value measurements - Summa
Fair value measurements - Summary of changes in net assets classified as Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Changes in assets classified as Level 3 measurements | ||
Change in net present value of derivative deferred premiums | $ 95 | $ 211 |
Deferred premiums | ||
Changes in assets classified as Level 3 measurements | ||
Balance of Level 3 at beginning of period | (16,565) | (28,683) |
Change in net present value of derivative deferred premiums | (95) | (211) |
Total purchases and settlements of derivative deferred premiums: | ||
Purchases | 0 | (5,422) |
Settlements | 4,016 | 4,024 |
Balance of Level 3 at end of period | $ (12,644) | $ (30,292) |
Fair value measurements - Carry
Fair value measurements - Carrying amount of debt instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Long-term debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 1,070,000 | $ 990,000 |
Long-term debt | January 2022 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 450,000 | 450,000 |
Long-term debt | March 2023 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 350,000 | 350,000 |
Long-term debt | Senior Secured Credit Facility | Secured debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 270,000 | 190,000 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 994,800 | 909,563 |
Fair value | January 2022 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 412,313 | 402,885 |
Fair value | March 2023 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 312,375 | 316,624 |
Fair value | Senior Secured Credit Facility | Secured debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 270,112 | $ 190,054 |
Net income (loss) per common _3
Net income (loss) per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income (loss) (numerator): | ||
Net income (loss)—basic and diluted | $ (9,491) | $ 86,520 |
Weighted-average common shares outstanding (denominator): | ||
Basic (in shares) | 230,476 | 238,228 |
Diluted (in shares) | 230,476 | 239,319 |
Net income (loss) per common share: | ||
Basic (in dollars per share) | $ (0.04) | $ 0.36 |
Diluted (in dollars per share) | $ (0.04) | $ 0.36 |
Dilutive non-vested restricted stock awards | ||
Weighted-average common shares outstanding (denominator): | ||
Incremental common shares (in shares) | 0 | 1,064 |
Dilutive outstanding stock option awards | ||
Weighted-average common shares outstanding (denominator): | ||
Incremental common shares (in shares) | 0 | 27 |
Commitments and contingencies -
Commitments and contingencies - Drilling contracts (Details) - Drilling contracts - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cost of Goods and Services Sold [Abstract] | ||
Penalties incurred for early contract termination | $ 0 | $ 0 |
Future drilling contracts commitments | $ 2,200,000 |
Commitments and contingencies_2
Commitments and contingencies - Firm sale and transportation commitments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Supply Commitment [Line Items] | ||
Minimum volume commitments deficiency payments | $ 0.5 | $ 0.1 |
Firm sale and transportation commitments | ||
Cost of Goods and Services Sold [Abstract] | ||
Future drilling contracts commitments | $ 358.5 |
Commitments and contingencies_3
Commitments and contingencies - Purchase commitment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase agreement term | 1 year | |
Aggregate purchase commitment | $ 1.1 |
Commitments and contingencies_4
Commitments and contingencies - Environmental (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for environmental loss contingencies | $ 0 | $ 0 |
Supplemental cash flow and no_3
Supplemental cash flow and non-cash information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Supplemental cash flow information: | ||
Capitalized interest | $ 242 | $ 255 |
Supplemental non-cash investing information: | ||
Increase (decrease) in accrued capital expenditures | 6,443 | (43,336) |
Capitalized stock-based compensation in evaluated oil and natural gas properties | 1,899 | 2,102 |
Capitalized asset retirement costs | 271 | 130 |
Supplemental non-cash financing information: | ||
Increase in accrued stock repurchases | 0 | $ 4,761 |
Supplemental cash paid for amounts included in the measurement of lease liabilities information: | ||
Operating cash flows for operating leases | 3,564 | |
Supplemental non-cash adjustments information: | ||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 22,090 |
Asset retirement obligations (D
Asset retirement obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liability at beginning of period | $ 56,882 | $ 55,506 |
Liabilities added due to acquisitions, drilling, midstream service asset construction and other | 271 | 130 |
Accretion expense | 1,052 | 1,106 |
Liabilities settled due to plugging and abandonment or removed due to sale | (447) | (440) |
Liability at end of period | $ 57,758 | $ 56,302 |
Revenue recognition (Details)
Revenue recognition (Details) - USD ($) $ in Thousands | Oct. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash consideration | $ 0 | $ 1,655 | |||
Accumulated deficit | $ (1,212,886) | $ (1,203,395) | |||
Variable interest entity, not primary beneficiary | Medallion Gathering And Processing LLC | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Ownership percentage by noncontrolling owners | 49.00% | ||||
Percent of ownership interests sold | 100.00% | ||||
Ownership interest | 49.00% | ||||
Cash consideration | $ 831,300 | ||||
Maximum exposure to loss | $ 141,100 | ||||
Global infrastructure partners | Variable interest entity, not primary beneficiary | Medallion Gathering And Processing LLC | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash consideration for sale | $ 1,825,000 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accumulated deficit | $ 141,100 |
Income taxes (Details)
Income taxes (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating loss carry-forward | |
Net operating loss carry-forward that will not expire due to TCJA | $ 157.2 |
Deferred tax assets, valuation allowance | 239 |
AMT credit carryforward | 4.1 |
Internal Revenue Service (IRS) | Federal | |
Operating loss carry-forward | |
Operating loss carryforwards | 1,900 |
State of Oklahoma | State | |
Operating loss carry-forward | |
Operating loss carryforwards | 36 |
Texas | State | |
Operating loss carry-forward | |
Deferred tax liability | 5 |
Accounts receivable | |
Operating loss carry-forward | |
AMT credit carryforward | 2.1 |
Other noncurrent assets, net | |
Operating loss carry-forward | |
AMT credit carryforward | $ 2 |
Related party (Details)
Related party (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Operating lease liabilities | $ 22,197 | |
Capital expenditures for oil and natural gas properties | 152,729 | $ 195,025 |
Helmerich & Payne, Inc. | Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Operating lease liabilities | 7,900 | |
Capital expenditures for oil and natural gas properties | $ 2,982 | $ 0 |
Subsidiary guarantors - Balance
Subsidiary guarantors - Balance sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Subsidiary guarantees | ||||
Accounts receivable, net | $ 107,520 | $ 94,321 | ||
Other current assets | 65,210 | 98,431 | ||
Oil and natural gas properties, net | 2,130,426 | 2,029,571 | ||
Midstream service assets, net | 131,118 | 130,245 | ||
Other fixed assets, net | 39,098 | 39,819 | ||
Investment in subsidiaries | 0 | 0 | ||
Other noncurrent assets, net | 41,417 | 27,918 | ||
Total assets | 2,514,789 | 2,420,305 | ||
Accounts payable and accrued liabilities | 76,644 | 69,504 | ||
Other current liabilities | 126,978 | 130,961 | ||
Long-term debt, net | 1,064,081 | 983,636 | ||
Other noncurrent liabilities | 75,654 | 61,974 | ||
Total stockholders' equity | 1,171,432 | 1,174,230 | $ 941,830 | $ 765,579 |
Total liabilities and stockholders' equity | 2,514,789 | 2,420,305 | ||
Intercompany eliminations | ||||
Subsidiary guarantees | ||||
Accounts receivable, net | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Oil and natural gas properties, net | (24,049) | (22,551) | ||
Midstream service assets, net | 0 | 0 | ||
Other fixed assets, net | 0 | 0 | ||
Investment in subsidiaries | (135,199) | (128,380) | ||
Other noncurrent assets, net | 0 | 0 | ||
Total assets | (159,248) | (150,931) | ||
Accounts payable and accrued liabilities | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Other noncurrent liabilities | 0 | 0 | ||
Total stockholders' equity | (159,248) | (150,931) | ||
Total liabilities and stockholders' equity | (159,248) | (150,931) | ||
Laredo | Reportable Legal Entities | ||||
Subsidiary guarantees | ||||
Accounts receivable, net | 94,635 | 83,424 | ||
Other current assets | 63,836 | 97,045 | ||
Oil and natural gas properties, net | 2,145,399 | 2,043,009 | ||
Midstream service assets, net | 0 | 0 | ||
Other fixed assets, net | 39,061 | 39,751 | ||
Investment in subsidiaries | 135,199 | 128,380 | ||
Other noncurrent assets, net | 37,245 | 23,783 | ||
Total assets | 2,515,375 | 2,415,392 | ||
Accounts payable and accrued liabilities | 57,291 | 54,167 | ||
Other current liabilities | 125,377 | 121,297 | ||
Long-term debt, net | 1,064,081 | 983,636 | ||
Other noncurrent liabilities | 73,145 | 59,511 | ||
Total stockholders' equity | 1,195,481 | 1,196,781 | ||
Total liabilities and stockholders' equity | 2,515,375 | 2,415,392 | ||
Subsidiary Guarantors | Reportable Legal Entities | ||||
Subsidiary guarantees | ||||
Accounts receivable, net | 12,885 | 10,897 | ||
Other current assets | 1,374 | 1,386 | ||
Oil and natural gas properties, net | 9,076 | 9,113 | ||
Midstream service assets, net | 131,118 | 130,245 | ||
Other fixed assets, net | 37 | 68 | ||
Investment in subsidiaries | 0 | 0 | ||
Other noncurrent assets, net | 4,172 | 4,135 | ||
Total assets | 158,662 | 155,844 | ||
Accounts payable and accrued liabilities | 19,353 | 15,337 | ||
Other current liabilities | 1,601 | 9,664 | ||
Long-term debt, net | 0 | 0 | ||
Other noncurrent liabilities | 2,509 | 2,463 | ||
Total stockholders' equity | 135,199 | 128,380 | ||
Total liabilities and stockholders' equity | $ 158,662 | $ 155,844 |
Subsidiary guarantors - Stateme
Subsidiary guarantors - Statement of operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Subsidiary guarantees | ||
Total revenues | $ 208,947 | $ 259,696 |
Total costs and expenses | 154,550 | 166,504 |
Operating income | 54,397 | 93,192 |
Interest expense | (15,547) | (13,518) |
Other (expense) income | (48,437) | 6,846 |
Income (loss) before income taxes | (9,587) | 86,520 |
Total income tax benefit | 96 | 0 |
Net income (loss) | (9,491) | 86,520 |
Intercompany eliminations | ||
Subsidiary guarantees | ||
Total revenues | (18,906) | (14,429) |
Total costs and expenses | (17,408) | (13,748) |
Operating income | (1,498) | (681) |
Interest expense | 0 | 0 |
Other (expense) income | (2,202) | (1,480) |
Income (loss) before income taxes | (3,700) | (2,161) |
Total income tax benefit | 0 | 0 |
Net income (loss) | (3,700) | (2,161) |
Laredo | Reportable Legal Entities | ||
Subsidiary guarantees | ||
Total revenues | 173,521 | 197,825 |
Total costs and expenses | 119,735 | 105,688 |
Operating income | 53,786 | 92,137 |
Interest expense | (15,547) | (13,518) |
Other (expense) income | (46,328) | 8,582 |
Income (loss) before income taxes | (8,089) | 87,201 |
Total income tax benefit | 96 | 0 |
Net income (loss) | (7,993) | 87,201 |
Subsidiary Guarantors | Reportable Legal Entities | ||
Subsidiary guarantees | ||
Total revenues | 54,332 | 76,300 |
Total costs and expenses | 52,223 | 74,564 |
Operating income | 2,109 | 1,736 |
Interest expense | 0 | 0 |
Other (expense) income | 93 | (256) |
Income (loss) before income taxes | 2,202 | 1,480 |
Total income tax benefit | 0 | 0 |
Net income (loss) | $ 2,202 | $ 1,480 |
Subsidiary guarantors - Cash fl
Subsidiary guarantors - Cash flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Subsidiary guarantees | ||
Net cash provided by (used in) operating activities | $ 77,458 | $ 146,471 |
Capital expenditures and other, net | (155,453) | (199,674) |
Net cash provided by financing activities | 77,388 | (3,067) |
Net decrease in cash and cash equivalents | (607) | (56,270) |
Cash and cash equivalents, beginning of period | 45,151 | 112,159 |
Cash and cash equivalents, end of period | 44,544 | 55,889 |
Intercompany eliminations | ||
Subsidiary guarantees | ||
Net cash provided by (used in) operating activities | (2,202) | (1,480) |
Capital expenditures and other, net | 2,202 | 1,480 |
Net cash provided by financing activities | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Laredo | Reportable Legal Entities | ||
Subsidiary guarantees | ||
Net cash provided by (used in) operating activities | 82,020 | 140,247 |
Capital expenditures and other, net | (160,015) | (193,450) |
Net cash provided by financing activities | 77,388 | (3,067) |
Net decrease in cash and cash equivalents | (607) | (56,270) |
Cash and cash equivalents, beginning of period | 45,150 | 112,158 |
Cash and cash equivalents, end of period | 44,543 | 55,888 |
Subsidiary Guarantors | Reportable Legal Entities | ||
Subsidiary guarantees | ||
Net cash provided by (used in) operating activities | (2,360) | 7,704 |
Capital expenditures and other, net | 2,360 | (7,704) |
Net cash provided by financing activities | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 1 | 1 |
Cash and cash equivalents, end of period | $ 1 | $ 1 |
Subsequent events - Narrative (
Subsequent events - Narrative (Details) - USD ($) | Apr. 12, 2019 | Apr. 08, 2019 | May 02, 2019 | Jun. 30, 2019 | Apr. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||||||||
Present value of deferred premiums | $ (1,040,000) | $ 43,506,000 | ||||||
Senior Secured Credit Facility | Secured debt | ||||||||
Subsequent Event [Line Items] | ||||||||
Current borrowing capacity | 1,300,000,000 | |||||||
Aggregate elected commitment | 1,200,000,000 | |||||||
Level 3 | ||||||||
Subsequent Event [Line Items] | ||||||||
Present value of deferred premiums | $ (12,644,000) | $ (16,565,000) | ||||||
Subsequent events | ||||||||
Subsequent Event [Line Items] | ||||||||
Favorable settlement received | $ 42,500,000 | |||||||
Approximate reduction in workforce | 20.00% | |||||||
Subsequent events | Senior Secured Credit Facility | Secured debt | ||||||||
Subsequent Event [Line Items] | ||||||||
Current borrowing capacity | $ 1,100,000,000 | |||||||
Aggregate elected commitment | $ 1,100,000,000 | |||||||
Subsequent events | Scenario, Forecast | ||||||||
Subsequent Event [Line Items] | ||||||||
One-time charges | $ 12,000,000 | |||||||
Subsequent events | Commodity derivatives | Not designated as hedges | ||||||||
Subsequent Event [Line Items] | ||||||||
Net termination amount | $ 5,400,000 | |||||||
Subsequent events | Level 3 | Commodity derivatives | Not designated as hedges | ||||||||
Subsequent Event [Line Items] | ||||||||
Present value of deferred premiums | $ 7,200,000 |
Subsequent events - Terminated
Subsequent events - Terminated derivatives (Details) - Oil derivatives - Early Contract Termination | 3 Months Ended |
Mar. 31, 2019$ / bblbbl | |
Oil puts, April 2019 - December 2019 | |
Subsequent Event [Line Items] | |
Aggregate volumes (Bbl) | bbl | 5,087,500 |
Weighted-average floor price ($/Bbl) | 46.03 |
Weighted-average ceiling price ($/Bbl) | 0 |
Oil collars, January 2020 - December 2020 | |
Subsequent Event [Line Items] | |
Aggregate volumes (Bbl) | bbl | 1,134,600 |
Weighted-average floor price ($/Bbl) | 45 |
Weighted-average ceiling price ($/Bbl) | 76.13 |
Subsequent events - Open deriva
Subsequent events - Open derivative positions (Details) - Scenario, Forecast - Derivatives not designated as hedges | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2019BoeMMBTU$ / MMBTU$ / bbl | Dec. 31, 2021BoeMMBTU$ / MMBTU$ / bbl | Dec. 31, 2020BoeMMBTU$ / MMBTU$ / bbl | |
Put Instrument 1 | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 6,050,000 | 0 | 366,000 |
Weighted-average ($/Bbl) | $ / bbl | 47.45 | 0 | 45 |
Put Instrument 2 | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 3,575,000 | 0 | 0 |
Weighted-average ($/Bbl) | $ / bbl | 3.21 | 0 | 0 |
Swap | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 495,000 | 695,400 | |
Weighted-average ($/Bbl) | $ / bbl | 53.45 | 52.18 | |
Swap | Natural gas derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | MMBTU | 29,425,000 | 14,052,500 | 23,790,000 |
Weighted-average ($/Bbl) | $ / MMBTU | 3.09 | 2.63 | 2.72 |
Collar | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 0 | 912,500 | 1,134,600 |
Collar | Floor | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Weighted-average ($/Bbl) | $ / bbl | 0 | 45 | 45 |
Collar | Ceiling | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Weighted-average ($/Bbl) | $ / bbl | 0 | 71 | 76.13 |
Commodity | NGL derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 4,372,500 | 2,202,775 | 2,562,000 |
Commodity | Floor | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 6,545,000 | 912,500 | 2,196,000 |
Weighted-average ($/Bbl) | $ / bbl | 47.91 | 45 | 47.27 |
Commodity | Ceiling | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 495,000 | 912,500 | 1,830,000 |
Weighted-average ($/Bbl) | $ / bbl | 53.45 | 71 | 67.03 |
Basis Swap | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 1,840,000 | 0 | 0 |
Weighted-average ($/Bbl) | $ / bbl | (2.89) | 0 | 0 |
Basis Swap 2 | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 552,000 | 0 | 0 |
Weighted-average ($/Bbl) | $ / bbl | (4.37) | 0 | 0 |
Basis Swap 3 | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 910,000 | 0 | 0 |
Weighted-average ($/Bbl) | $ / bbl | 7.30 | 0 | 0 |
Basis Swap 4 | Natural gas derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | MMBTU | 29,425,000 | 23,360,000 | 32,574,000 |
Weighted-average ($/Bbl) | $ / MMBTU | (1.51) | (0.47) | (0.76) |
Ethane | Swap | NGL derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 1,787,500 | 912,500 | 366,000 |
Weighted-average ($/Bbl) | $ / bbl | 14.22 | 12.01 | 13.60 |
Propane | Swap | NGL derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 1,430,000 | 730,000 | 1,244,400 |
Weighted-average ($/Bbl) | $ / bbl | 27.97 | 25.52 | 26.58 |
Butane | Swap | NGL derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 550,000 | 255,500 | 439,200 |
Weighted-average ($/Bbl) | $ / bbl | 30.73 | 27.72 | 28.69 |
Isobutane | Swap | NGL derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 137,500 | 67,525 | 109,800 |
Weighted-average ($/Bbl) | $ / bbl | 31.08 | 28.79 | 29.99 |
Natural Gasoline | Swap | NGL derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 467,500 | 237,250 | 402,600 |
Weighted-average ($/Bbl) | $ / bbl | 45.80 | 44.31 | 45.15 |
Subsequent events | Put Instrument 1 | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 962,500 | 0 | 366,000 |
Weighted-average ($/Bbl) | $ / bbl | 55 | 0 | 45 |
Subsequent events | Put Instrument 2 | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 962,500 | 0 | 0 |
Weighted-average ($/Bbl) | $ / bbl | 4.39 | 0 | 0 |
Subsequent events | Swap | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 5,912,500 | 0 | 7,173,600 |
Weighted-average ($/Bbl) | $ / bbl | 61.31 | 0 | 59.50 |
Subsequent events | Swap | Natural gas derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | MMBTU | 29,425,000 | 14,052,500 | 23,790,000 |
Weighted-average ($/Bbl) | $ / MMBTU | 3.09 | 2.63 | 2.72 |
Subsequent events | Collar | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 0 | 912,500 | 0 |
Subsequent events | Collar | Floor | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Weighted-average ($/Bbl) | $ / bbl | 0 | 45 | 0 |
Subsequent events | Collar | Ceiling | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Weighted-average ($/Bbl) | $ / bbl | 0 | 71 | 0 |
Subsequent events | Commodity | NGL derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 4,372,500 | 2,202,775 | 2,562,000 |
Subsequent events | Commodity | Floor | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 6,875,000 | 912,500 | 7,539,600 |
Weighted-average ($/Bbl) | $ / bbl | 60.42 | 45 | 58.79 |
Subsequent events | Commodity | Ceiling | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 5,912,500 | 912,500 | 7,173,600 |
Weighted-average ($/Bbl) | $ / bbl | 61.31 | 71 | 59.50 |
Subsequent events | Basis Swap | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 1,840,000 | 0 | 0 |
Weighted-average ($/Bbl) | $ / bbl | (2.89) | 0 | 0 |
Subsequent events | Basis Swap 2 | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 552,000 | 0 | 0 |
Weighted-average ($/Bbl) | $ / bbl | (4.37) | 0 | 0 |
Subsequent events | Basis Swap 3 | Oil derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 910,000 | 0 | 0 |
Weighted-average ($/Bbl) | $ / bbl | 7.30 | 0 | 0 |
Subsequent events | Basis Swap 4 | Natural gas derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | MMBTU | 29,425,000 | 23,360,000 | 32,574,000 |
Weighted-average ($/Bbl) | $ / MMBTU | (1.51) | (0.47) | (0.76) |
Subsequent events | Ethane | Swap | NGL derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 1,787,500 | 912,500 | 366,000 |
Weighted-average ($/Bbl) | $ / bbl | 14.22 | 12.01 | 13.60 |
Subsequent events | Propane | Swap 2 | NGL derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 1,430,000 | 730,000 | 1,244,400 |
Weighted-average ($/Bbl) | $ / bbl | 27.97 | 25.52 | 26.58 |
Subsequent events | Butane | Swap 3 | NGL derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 550,000 | 255,500 | 439,200 |
Weighted-average ($/Bbl) | $ / bbl | 30.73 | 27.72 | 28.69 |
Subsequent events | Isobutane | Swap 4 | NGL derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 137,500 | 67,525 | 109,800 |
Weighted-average ($/Bbl) | $ / bbl | 31.08 | 28.79 | 29.99 |
Subsequent events | Natural Gasoline | Swap 5 | NGL derivatives | |||
Subsequent Event [Line Items] | |||
Volume (Bbl) | Boe | 467,500 | 237,250 | 402,600 |
Weighted-average ($/Bbl) | $ / bbl | 45.80 | 44.31 | 45.15 |
Uncategorized Items - a1q19lpi1
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 141,118,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 141,118,000 |