Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35380 | |
Entity Registrant Name | Laredo Petroleum, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3007926 | |
Entity Address, Address Line One | 15 W. Sixth Street | |
Entity Address, Address Line Two | Suite 900 | |
Entity Address, City or Town | Tulsa | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74119 | |
City Area Code | 918 | |
Local Phone Number | 513-4570 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | LPI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,303,489 | |
Entity Central Index Key | 0001528129 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 65,137 | $ 56,798 |
Accounts receivable, net | 213,549 | 151,807 |
Derivatives | 5,899 | 4,346 |
Other current assets | 17,767 | 22,906 |
Total current assets | 302,352 | 235,857 |
Oil and natural gas properties, full cost method: | ||
Evaluated properties | 9,149,982 | 8,968,668 |
Unevaluated properties not being depleted | 156,899 | 170,033 |
Less accumulated depletion and impairment | (7,089,265) | (7,019,670) |
Oil and natural gas properties, net | 2,217,616 | 2,119,031 |
Midstream service assets, net | 94,632 | 96,528 |
Other fixed assets, net | 35,374 | 34,590 |
Total property and equipment, net | 2,347,622 | 2,250,149 |
Derivatives | 33,862 | 32,963 |
Other noncurrent assets, net | 42,494 | 32,855 |
Total assets | 2,726,330 | 2,551,824 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 73,228 | 71,386 |
Accrued capital expenditures | 69,018 | 50,585 |
Undistributed revenue and royalties | 162,233 | 117,920 |
Derivatives | 365,256 | 179,809 |
Other current liabilities | 105,767 | 107,213 |
Total current liabilities | 775,502 | 526,913 |
Long-term debt, net | 1,421,821 | 1,425,858 |
Derivatives | 17,450 | 0 |
Asset retirement obligations | 69,677 | 69,057 |
Other noncurrent liabilities | 18,092 | 16,216 |
Total liabilities | 2,302,542 | 2,038,044 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized and zero issued as of March 31, 2022 and December 31, 2021 | 0 | 0 |
Common stock, $0.01 par value, 22,500,000 shares authorized and 17,302,320 and 17,074,516 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 173 | 171 |
Additional paid-in capital | 2,785,415 | 2,788,628 |
Accumulated deficit | (2,361,800) | (2,275,019) |
Total stockholders' equity | 423,788 | 513,780 |
Total liabilities and stockholders' equity | $ 2,726,330 | $ 2,551,824 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in USD 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 USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 22,500,000 | 22,500,000 |
Common stock issued (in shares) | 17,302,320 | 17,074,516 |
Common stock outstanding (in shares) | 17,302,320 | 17,074,516 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total revenues | $ 532,395 | $ 250,230 |
Costs and expenses: | ||
Lease operating expenses | 40,876 | 18,918 |
Production and ad valorem taxes | 27,487 | 13,283 |
General and administrative | 21,944 | 13,073 |
Depletion, depreciation and amortization | 73,492 | 38,109 |
Other operating expenses | 1,019 | 1,143 |
Total costs and expenses | 263,939 | 147,427 |
Operating income | 268,456 | 102,803 |
Non-operating income (expense): | ||
Loss on derivatives, net | (325,816) | (154,365) |
Interest expense | (32,477) | (25,946) |
Loss on disposal of assets, net | (260) | (72) |
Other income, net | 2,439 | 1,379 |
Total non-operating expense, net | (356,114) | (179,004) |
Loss before income taxes | (87,658) | (76,201) |
Income tax (expense) benefit: | ||
Current | (1,218) | 0 |
Deferred | 2,095 | 762 |
Total income tax benefit | 877 | 762 |
Net loss | $ (86,781) | $ (75,439) |
Net loss per common share: | ||
Basic (in USD per share) | $ (5.18) | $ (6.33) |
Diluted (in USD per share) | $ (5.18) | $ (6.33) |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 16,767 | 11,918 |
Diluted (in shares) | 16,767 | 11,918 |
Oil sales | ||
Revenues: | ||
Total revenues | $ 347,443 | $ 127,701 |
NGL sales | ||
Revenues: | ||
Total revenues | 65,155 | 41,678 |
Natural gas sales | ||
Revenues: | ||
Total revenues | 38,589 | 33,078 |
Midstream service revenues | ||
Revenues: | ||
Total revenues | 2,344 | 1,296 |
Costs and expenses: | ||
Cost of goods and services sold | 1,414 | 858 |
Sales of purchased oil | ||
Revenues: | ||
Total revenues | 78,864 | 46,477 |
Costs and expenses: | ||
Cost of goods and services sold | 82,964 | 49,916 |
Transportation and marketing expenses | ||
Costs and expenses: | ||
Cost of goods and services sold | $ 14,743 | $ 12,127 |
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 at beginning of period (in shares) at Dec. 31, 2020 | 12,020 | 0 | |||
Balance at beginning of period at Dec. 31, 2020 | $ (21,443) | $ 120 | $ 2,398,464 | $ 0 | $ (2,420,027) |
Increase (Decrease) in Stockholders' Equity | |||||
Restricted stock awards (in shares) | 188 | ||||
Restricted stock awards | 0 | $ 2 | (2) | ||
Restricted stock forfeitures (in shares) | (1) | ||||
Stock exchanged for tax withholding (in shares) | 37 | ||||
Stock exchanged for tax withholding | (1,290) | $ (1,290) | |||
Retirement of treasury stock (in shares) | (37) | (37) | |||
Retirement of treasury stock | 0 | (1,290) | $ 1,290 | ||
Share-settled equity-based compensation | 2,738 | 2,738 | |||
Issuance of common stock, net of costs (in shares) | 724 | ||||
Issuance of common stock, net of costs | 26,866 | $ 7 | 26,859 | ||
Performance share conversion (in shares) | 6 | ||||
Net loss | (75,439) | (75,439) | |||
Balance at end of period (in shares) at Mar. 31, 2021 | 12,900 | 0 | |||
Balance at end of period at Mar. 31, 2021 | (68,568) | $ 129 | 2,426,769 | $ 0 | (2,495,466) |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 17,075 | 0 | |||
Balance at beginning of period at Dec. 31, 2021 | 513,780 | $ 171 | 2,788,628 | $ 0 | (2,275,019) |
Increase (Decrease) in Stockholders' Equity | |||||
Restricted stock awards (in shares) | 232 | ||||
Restricted stock awards | 0 | $ 2 | (2) | ||
Restricted stock forfeitures (in shares) | (4) | ||||
Stock exchanged for tax withholding (in shares) | 76 | ||||
Stock exchanged for tax withholding | (5,847) | $ (5,847) | |||
Retirement of treasury stock (in shares) | (76) | (76) | |||
Retirement of treasury stock | 0 | $ (1) | (5,846) | $ 5,847 | |
Share-settled equity-based compensation | 2,636 | 2,636 | |||
Performance share conversion (in shares) | 75 | ||||
Performance share conversion | 0 | $ 1 | (1) | ||
Net loss | (86,781) | (86,781) | |||
Balance at end of period (in shares) at Mar. 31, 2022 | 17,302 | 0 | |||
Balance at end of period at Mar. 31, 2022 | $ 423,788 | $ 173 | $ 2,785,415 | $ 0 | $ (2,361,800) |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (86,781) | $ (75,439) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Share-settled equity-based compensation, net | 2,053 | 2,068 |
Depletion, depreciation and amortization | 73,492 | 38,109 |
Mark-to-market on derivatives: | ||
Loss on derivatives, net | 325,816 | 154,365 |
Settlements paid for matured derivatives, net | (125,370) | (41,174) |
Premiums received for commodity derivatives | 0 | 9,041 |
Amortization of debt issuance costs | 1,541 | 989 |
Amortization of operating lease right-of-use assets | 5,025 | 2,997 |
Deferred income tax benefit | (2,095) | (762) |
Other, net | 425 | 1,491 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (61,742) | (3,728) |
Other current assets | 5,092 | (10,264) |
Other noncurrent assets, net | (15,227) | (1,636) |
Accounts payable and accrued liabilities | 1,842 | 9,065 |
Undistributed revenue and royalties | 44,294 | 7,290 |
Other current liabilities | (1,471) | (19,622) |
Other noncurrent liabilities | 3,988 | (1,639) |
Net cash provided by operating activities | 170,882 | 71,151 |
Cash flows from investing activities: | ||
Acquisitions of oil and natural gas properties, net | (7,870) | 0 |
Capital expenditures: | ||
Oil and natural gas properties | (143,500) | (68,329) |
Midstream service assets | (293) | (329) |
Other fixed assets | (2,052) | (551) |
Proceeds from dispositions of capital assets, net of selling costs | 2,019 | 189 |
Net cash used in investing activities | (151,696) | (69,020) |
Cash flows from financing activities: | ||
Borrowings on Senior Secured Credit Facility | 50,000 | 15,000 |
Payments on Senior Secured Credit Facility | (55,000) | (50,000) |
Proceeds from issuance of common stock, net of offering costs | 0 | 26,866 |
Stock exchanged for tax withholding | (5,847) | (1,290) |
Other | 0 | 2,798 |
Net cash used in financing activities | (10,847) | (6,626) |
Net increase (decrease) in cash and cash equivalents | 8,339 | (4,495) |
Cash and cash equivalents, beginning of period | 56,798 | 48,757 |
Cash and cash equivalents, end of period | $ 65,137 | $ 44,262 |
Organization and basis of prese
Organization and basis of presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization and basis of presentation | Organization and basis of presentation 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, primarily in the Permian Basin of West Texas. The Company has identified one operating segment: exploration and production. 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. 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, 2021 is derived from the Company's 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, 2022, results of operations for the three months ended March 31, 2022 and 2021 and cash flows for the three months ended March 31, 2022 and 2021. 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 2021 Annual Report. Reclassifications Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. There was no impact on previously reported total assets, total liabilities, net loss or stockholders' equity for the periods presented. Significant accounting policies There have been no material changes in the Company's significant accounting policies during the three months ended March 31, 2022. See Note 2 in the 2021 Annual Report for discussion of significant accounting policies. 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 as of 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. See Note 2 in the 2021 Annual Report for further information regarding the use of estimates and assumptions. |
New accounting standards
New accounting standards | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New accounting standards | New accounting standards The Company considered the applicability and impact of all accounting standard updates ("ASU") issued by the Financial Accounting Standards Board to the Accounting Standards Codification ("ASC") and has determined there are no ASUs that are not yet adopted and meaningful to disclose as of March 31, 2022. Additionally, the Company did not adopt any new ASUs during the three months ended March 31, 2022. |
Acquisitions and divestitures
Acquisitions and divestitures | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and divestitures | Acquisitions and divestitures 2021 Acquisitions and divestiture Pioneer Acquisition On September 17, 2021, the Company entered into a purchase and sale agreement (the "Pioneer PSA") with Pioneer Natural Resources USA, Inc ("PXD"), DE Midland III, LLC ("DEM"), Parsley Minerals, LLC ("PM") and Parsley Energy, L.P. ("PE" and collectively with PXD, DEM, and PM, the "Seller") pursuant to which the Company agreed to purchase (the "Pioneer Acquisition"), effective as of July 1, 2021, certain oil and natural gas properties in the Midland Basin, including approximately 20,000 net acres, and approximately 135 gross (121 net) operated locations, located in western Glasscock County, Texas, as well as related assets and contracts (the "Pioneer Assets"). On October 18, 2021 ("Pioneer Closing Date"), the Company closed the Pioneer Acquisition for an aggregate purchase price of $206.3 million, comprised of (i) $131.6 million in cash, (ii) 959,691 shares of the Company's common stock, par value $0.01 per share (the "common stock"), based upon the share price as of the Pioneer Closing Date and (iii) $3.8 million in transaction related expenses, inclusive of customary closing adjustments, subject to post-closing adjustments. The Company determined that the Pioneer Acquisition was an asset acquisition, as substantially all of the gross assets acquired are concentrated in a group of similar identifiable assets. Accordingly, the consideration paid was allocated to the individual assets acquired and liabilities assumed based on their relative fair values and all transaction costs associated were capitalized. The following table presents components of the purchase price, inclusive of customary closing adjustments: (in thousands, except for share and share price data) As of October 18, 2021 Shares of Company common stock 959,691 Company common stock price at the Pioneer Closing Date $ 73.90 Value of Company common stock consideration $ 70,921 Cash consideration $ 131,633 Transaction costs 3,775 Total purchase price $ 206,329 The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed, based on their relative fair values, on the Pioneer Closing Date: (in thousands) As of October 18, 2021 Evaluated properties $ 139,859 Unevaluated properties 74,192 Revenue suspense liabilities assumed (7,722) Allocated purchase price $ 206,329 The Company funded the cash portion of the aggregate purchase price and related transaction costs with respect to the Pioneer Acquisition with cash on hand and borrowings under its Senior Secured Credit Facility. During the year ended December 31, 2021, in connection with the Pioneer Acquisition, the Company acquired additional interests in the Pioneer Assets through additional sellers that exercised their "tag-along" sales rights, for total cash consideration of $2.9 million, excluding customary purchase price adjustments. These acquisitions were accounted for as asset acquisitions. Sabalo/Shad Acquisition On May 7, 2021, the Company entered into two separate purchase and sale agreements, one (the "Sabalo PSA") with Sabalo Energy, LLC and its subsidiary, Sabalo Operating, LLC (collectively, "Sabalo"), and the other (the "Shad PSA" and together with the Sabalo PSA, the "Sabalo/Shad PSAs") with Shad Permian, LLC ("Shad"), to acquire certain Midland Basin oil and natural gas properties, including approximately 21,000 net acres and approximately 120 gross (109 net) operated locations and approximately 150 gross (18 net) non-operated locations, located in Howard and Borden Counties, Texas, (collectively, the "Sabalo/Shad Acquisition"). Sabalo and Shad are unaffiliated, but owned interests in the same assets. On July 1, 2021 ("Sabalo/Shad Closing Date"), the Company closed the Sabalo/Shad Acquisition, effective April 1, 2021, for an aggregate purchase price of $863.1 million, comprised of (i) $606.1 million in cash (ii) 2,506,964 shares of the Company's common stock, based upon the share price as of the Sabalo/Shad Closing Date, and (iii) $17.0 million in transaction related expenses, inclusive of customary closing adjustments, subject to post-closing adjustments. The Sabalo/Shad Acquisition was accounted for as a single transaction because the Sabalo PSA and Shad PSA were entered into at the same time and in contemplation of one another to form a single transaction designed to achieve an overall economic effect. The Company determined that the Sabalo/Shad Acquisition was an asset acquisition, as substantially all of the gross assets acquired are concentrated in a group of similar identifiable assets. Accordingly, the consideration paid was allocated to the individual assets acquired and liabilities assumed based on their relative fair values and all transaction costs associated were capitalized. The following table presents components of the purchase price, inclusive of customary closing adjustments: (in thousands, except for share and share price data) As of July 1, 2021 Shares of Company common stock 2,506,964 Company common stock price at the Sabalo/Shad Closing Date $ 95.72 Value of Company common stock consideration $ 239,967 Cash consideration $ 606,126 Transaction costs 17,020 Total purchase price $ 863,113 The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed, based on their relative fair values, on the Sabalo/Shad Closing Date: (in thousands) As of July 1, 2021 Evaluated properties $ 503,005 Unevaluated properties 362,977 Revenue suspense liabilities assumed (4,269) Inventory 1,400 Allocated purchase price $ 863,113 The Company funded the cash portion of the aggregate purchase price and related transaction costs with respect to the Sabalo/Shad Acquisition with proceeds from borrowings under its Senior Secured Credit Facility and the Working Interest Sale described below. Working Interest Sale On May 7, 2021, the Company entered into a purchase and sale agreement (the "Sixth Street PSA") with Piper Investments Holdings, LLC, an affiliate of Sixth Street Partners, LLC ("Sixth Street"), to sell 37.5% of the Company's working interest in certain producing wellbores and the related properties primarily located within Glasscock and Reagan Counties, Texas, subject to certain excluded assets and title diligence procedures (the "Working Interest Sale"). On July 1, 2021 (the "Sixth Street Closing Date"), the Company closed the Working Interest Sale for cash proceeds of $405.0 million. In addition to such proceeds, the Sixth Street PSA also provided the Company with the right to receive up to a maximum of $93.7 million in additional cash consideration if certain cash flow targets related to divested oil and natural gas property operations are met ("Sixth Street Contingent Consideration"). The Sixth Street Contingent Consideration is made up of quarterly payments through June 2027 totaling up to $38.7 million and a potential balloon payment of $55.0 million in June 2027. On the Sixth Street Closing Date, the fair value of the Sixth Street Contingent Consideration was determined to be $33.8 million. The Sixth Street Contingent Consideration is accounted for as a contingent consideration derivative, with all gains and losses as a result of changes in the fair value of the contingent consideration derivative recognized in earnings in the period in which the changes occur. See Notes 8 and 9 for further discussion of the Sixth Street Contingent Consideration. Subsequent to the Sixth Street Closing Date, the Company continues to own and operate its remaining working interest in the properties sold to Sixth Street; however, the results of operations and cash flows related to the 37.5% working interests sold were eliminated from the Company's financial statements. This divestiture did not represent a strategic shift and will not have a major effect on the Company's future operations or financial results. Pursuant to the rules governing full cost accounting, the Company recorded a gain on the Working Interest Sale of $93.5 million, net of transaction expenses of $11.6 million, on the Company's consolidated statements of operations, subject to post-closing adjustments, as this divestment represented more than 25% of the Company's June 30, 2021 proved reserves. For the purposes of calculating the gain, total capitalized costs were allocated between reserves sold and reserves retained as of the Sixth Street Closing Date. Exchange of unevaluated oil and natural gas properties From time to time, the Company exchanges undeveloped acreage with third parties. The exchanges are recorded at fair value and the difference is accounted for as an adjustment of capitalized costs with no gain or loss recognized pursuant to the rules governing full cost accounting, unless such adjustment would significantly alter the relationship between capitalized costs and proved reserves of oil, NGL and natural gas. |
Property and equipment
Property and equipment | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 December 31, 2021 Evaluated oil and natural gas properties $ 9,149,982 $ 8,968,668 Less accumulated depletion and impairment (7,089,265) (7,019,670) Evaluated oil and natural gas properties, net 2,060,717 1,948,998 Unevaluated oil and natural gas properties not being depleted 156,899 170,033 Midstream service assets 165,099 165,232 Less accumulated depreciation and impairment (70,467) (68,704) Midstream service assets, net 94,632 96,528 Depreciable other fixed assets 45,448 43,381 Less accumulated depreciation and amortization (28,980) (27,692) Depreciable other fixed assets, net 16,468 15,689 Land 18,906 18,901 Total property and equipment, net $ 2,347,622 $ 2,250,149 See Notes 2 and 6 in the 2021 Annual Report for additional discussion of the Company's property and equipment. The unamortized cost of evaluated oil and natural gas properties being depleted did not exceed the full cost ceiling as of March 31, 2022 and March 31, 2021. As such, no full cost ceiling impairments were recorded for the three months ended March 31, 2022 and 2021. The following table presents incurred capital expenditures in the acquisition, exploration and development of oil and natural gas properties, with asset retirement obligations included in evaluated property acquisition costs and development costs, for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Property acquisition costs: Evaluated $ 4,780 $ — Unevaluated 3,274 — Exploration costs 6,753 3,957 Development costs 161,615 64,492 Total oil and natural gas properties incurred capital expenditures $ 176,422 $ 68,449 Total oil and natural gas properties incurred capital expenditures includes certain employee-related costs. The following table presents capitalized employee-related incurred capital expenditures in the acquisition, exploration and development of oil and natural gas properties for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Capitalized employee-related costs $ 4,343 $ 4,241 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt, net The following table presents the Company's long-term debt and debt issuance costs, net included in "Long-term debt, net" on the unaudited consolidated balance sheets as of the dates presented: March 31, 2022 December 31, 2021 (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 2025 Notes $ 577,913 $ (5,816) $ 572,097 $ 577,913 $ (6,345) $ 571,568 January 2028 Notes 361,044 (4,814) 356,230 361,044 (5,024) 356,020 July 2029 Notes 400,000 (6,506) 393,494 400,000 (6,730) 393,270 Senior Secured Credit Facility (1) 100,000 — 100,000 105,000 — 105,000 Total $ 1,438,957 $ (17,136) $ 1,421,821 $ 1,443,957 $ (18,099) $ 1,425,858 ______________________________________________________________________________ (1) Debt issuance costs, net related to the Senior Secured Credit Facility of $7.5 million and $8.1 million as of March 31, 2022 and December 31, 2021, respectively, are included in "Other noncurrent assets, net" on the unaudited consolidated balance sheets. July 2029 Notes On July 16, 2021, the Company completed a private offering and sale of $400.0 million in aggregate principal amount of 7.750% senior unsecured notes due 2029 (the "July 2029 Notes"). Interest for the July 2029 Notes is payable semi-annually, in cash in arrears on January 31 and July 31 of each year, commencing January 31, 2022 with interest from closing to that date. The terms of the July 2029 Notes include covenants, which are in addition to but different than similar covenants in the Senior Secured Credit Facility, which limit the Company's ability to incur indebtedness, make restricted payments, grant liens and dispose of assets. The July 2029 Notes are fully and unconditionally guaranteed on a senior unsecured basis by LMS and GCM, and will be fully and unconditionally guaranteed by 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 received net proceeds of approximately $392.0 million from the July 2029 Notes, after deducting underwriting discounts and commissions and estimated offering expenses. The proceeds from the offering were used for general corporate purposes, including repaying a portion of the borrowings outstanding under the Senior Secured Credit Facility. Senior Secured Credit Facility As of March 31, 2022, the Senior Secured Credit Facility, which matures on July 16, 2025 (subject to a springing maturity date of July 29, 2024 if any of the January 2025 Notes are outstanding on such date), had a maximum credit amount of $2.0 billion, a borrowing base and an aggregate elected commitment of $1.0 billion and $725.0 million, respectively, with $100.0 million outstanding, and was subject to an interest rate of 3.000%. 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 and $80.0 million. As of March 31, 2022 and December 31, 2021, the Company had one letter of credit outstanding of $44.1 million under the Senior Secured Credit Facility. For additional information see Note 7 in the 2021 Annual Report. See Note 16 for discussion of (i) additional borrowings and repayments on and (ii) an increase in the borrowing base and aggregate commitment of the Senior Secured Credit Facility subsequent to March 31, 2022. The Company's measurements of Adjusted EBITDA (non-GAAP) for financial reporting as compared to compliance under its debt agreements differ. Debt issuance costs No debt issuance costs were capitalized or written off during the three months ended March 31, 2022 or 2021. |
Stockholders' equity
Stockholders' equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders' equity ATM Program On February 23, 2021, the Company entered into an equity distribution agreement (the "Equity Distribution Agreement") with Wells Fargo Securities, LLC acting as sales agent and/or principal (the "Sales Agent"), pursuant to which the Company may offer and sell, from time to time through the Sales Agent, shares of its common stock having an aggregate gross sales price of up to $75.0 million through an "at-the-market" equity program (the "ATM Program"). During the three months ended March 31, 2021, the Company sold 723,579 shares of its common stock pursuant to the ATM Program for net proceeds of approximately $26.9 million, after underwriting commissions and other related expenses. The ATM Program was completed during the year ended December 31, 2021. Proceeds from the share sales were utilized to reduce borrowings on the Senior Secured Credit Facility. |
Equity Incentive Plan
Equity Incentive Plan | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Equity Incentive Plan | 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, phantom unit awards and other awards. On May 20, 2021, the Company's stockholders approved an amendment to the Equity Incentive Plan to, among other things, increase the maximum number of shares of the Company's common stock issuable under the Equity Incentive Plan from 1,492,500 to 2,432,500 shares. See Note 9 in the 2021 Annual Report for additional discussion of the Company's equity-based compensation awards. The following table presents activity for equity-based compensation awards for the three months ended March 31, 2022: Equity Awards Liability Awards (in thousands) Restricted Stock Awards Stock Option Awards Performance Share Awards (1)(2) Performance Unit Awards Phantom Unit Awards (3) Outstanding as of December 31, 2021 350 7 72 209 33 Granted 232 — 62 — — Forfeited (4) — (2) — — Vested (125) — (70) — (15) Expired or canceled — (2) — — — Outstanding as of March 31, 2022 453 5 62 209 18 _____________________________________________________________________________ (1) The performance share awards granted on February 28, 2019 had a performance period of January 1, 2019 to December 31, 2021 and, as their market and performance criteria were satisfied, resulted in a 107% payout. As such, the granted awards vested and were converted into 75,107 shares of the Company's common stock during the three months ended March 31, 2022 based on this 107% payout. (2) On February 22, 2022, the Company granted performance share awards with a performance period of January 1, 2022 through December 31, 2024. The market criteria consists of: (i) annual relative total shareholder return comparing the Company's shareholder return to the shareholder return of the exploration and production companies listed in the Russell 2000 Index and (ii) annual absolute total shareholder return. The performance criteria for these awards consists of: (i) earnings before interest, taxes, depreciation, amortization and exploration expense and three-year total debt reduction, (ii) growth in inventory and (iii) emissions reduction targets. Any shares earned are expected to be paid in equity during the first quarter following the completion of the requisite service period, based on the achievement of market and performance criteria, and the payout can range from 0% to 225%. (3) On March 1, 2022 and March 5, 2022, the vested phantom unit awards were settled and paid out in cash at a fair value of $76.60 and $83.00 based on the Company's closing stock price on the respective vesting dates. As of March 31, 2022, total unrecognized cost related to equity-based compensation awards was $39.7 million, of which $14.0 million was attributable to liability awards which will be settled in cash rather than shares. Such cost will be recognized on a straight-line basis over an expected weighted-average period of 2.28 years. Equity-based compensation The following table reflects equity-based compensation expense for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Equity awards: Restricted stock awards $ 2,175 $ 1,963 Performance share awards 461 768 Stock option awards — 7 Total share-settled equity-based compensation, gross $ 2,636 $ 2,738 Less amounts capitalized (583) (670) Total share-settled equity-based compensation, net $ 2,053 $ 2,068 Liability awards: Performance unit awards $ 5,566 $ 820 Phantom unit awards 609 506 Total cash-settled equity-based compensation, gross $ 6,175 $ 1,326 Less amounts capitalized (47) (198) Total cash-settled equity-based compensation, net $ 6,128 $ 1,128 Total equity-based compensation, net $ 8,181 $ 3,196 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company has three types of derivative instruments as of March 31, 2022: (i) commodity derivatives, (ii) a debt interest rate derivative and (iii) a contingent consideration derivative. See Notes (i) 2 in the 2021 Annual Report for discussion of the Company's significant accounting policies for derivatives and presentation, (ii) 9 for discussion of fair value measurement of derivatives on a recurring basis and (iii) 16 for discussion of derivatives subsequent events. The Company's derivatives were not designated as hedges for accounting purposes, and the Company does not enter into such instruments for speculative trading purposes. Accordingly, the changes in fair value are recognized in "Loss on derivatives, net" under "Non-operating income (expense)" on the unaudited consolidated statements of operations. The following table summarizes components of the Company's loss on derivatives, net by type of derivative instrument for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Commodity $ (329,724) $ (154,033) Interest rate 13 4 Contingent consideration 3,895 (336) Loss on derivatives, net $ (325,816) $ (154,365) Commodity Due to the inherent volatility in oil, NGL and natural gas prices and the sometimes wide pricing differentials between where the Company produces and where the Company sells such commodities, the Company engages in commodity derivative transactions, such as puts, swaps, collars and basis swaps, to hedge price risk associated with a portion of the Company's anticipated sales volumes. By removing a portion of the price volatility associated with future sales volumes, the Company expects to mitigate, but not eliminate, the potential effects of variability in cash flows from operations. See Note 10 in the 2021 Annual Report for discussion of transaction types and settlement indexes. During the three months ended March 31, 2022, the Company’s derivatives were settled based on reported prices on commodity exchanges, with (i) oil derivatives settled based on WTI NYMEX and Brent ICE pricing, (ii) NGL derivatives settled based on Mont Belvieu OPIS pricing and (iii) natural gas derivatives settled based on Henry Hub NYMEX and Waha Inside FERC pricing. The following table summarizes open commodity derivative positions as of March 31, 2022, for commodity derivatives that were entered into through March 31, 2022, for the settlement periods presented: Remaining Year 2022 Year 2023 Oil: WTI NYMEX - Swaps: Volume (Bbl) 1,068,000 — Weighted-average price ($/Bbl) $ 81.57 $ — WTI NYMEX - Collars: Volume (Bbl) 2,557,500 3,997,000 Weighted-average floor price ($/Bbl) $ 58.23 $ 66.37 Weighted-average ceiling price ($/Bbl) $ 69.39 $ 81.16 Brent ICE - Swaps: Volume (Bbl) 3,107,500 — Weighted-average price ($/Bbl) $ 48.34 $ — Brent ICE - Collars: Volume (Bbl) 1,168,750 — Weighted-average floor price ($/Bbl) $ 56.65 $ — Weighted-average ceiling price ($/Bbl) $ 65.44 $ — NGL: Purity Ethane - Swaps: Volume (Bbl) 1,155,000 — Weighted-average price ($/Bbl) $ 11.42 $ — Non-TET Propane - Swaps: Volume (Bbl) 880,000 — Weighted-average price ($/Bbl) $ 35.91 $ — Non-TET Normal Butane - Swaps: Volume (Bbl) 275,000 — Weighted-average price ($/Bbl) $ 41.58 $ — Non-TET Isobutane - Swaps: Volume (Bbl) 82,500 — Weighted-average price ($/Bbl) $ 42.00 $ — Non-TET Natural Gasoline - Swaps: Volume (Bbl) 275,000 — Weighted-average price ($/Bbl) $ 60.65 $ — Natural gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 2,750,000 — Weighted-average price ($/MMBtu) $ 2.73 $ — Henry Hub NYMEX - Collars: Volume (MMBtu) 22,000,000 3,650,000 Weighted-average floor price ($/MMBtu) $ 3.09 $ 3.00 Weighted-average ceiling price ($/MMBtu) $ 3.84 $ 4.45 Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: Volume (MMBtu) 21,862,500 — Weighted-average differential ($/MMBtu) $ (0.36) $ — Interest rate Due to the inherent volatility in interest rates, the Company has entered into an interest rate derivative swap to hedge interest rate risk associated with a portion of the Company's anticipated outstanding debt under the Senior Secured Credit Facility. The Company will pay a fixed rate over the contract term for that portion. By removing a portion of the interest rate volatility associated with anticipated outstanding debt, the Company expects to mitigate, but not eliminate, the potential effects of variability in cash flows from operations. The following table summarizes the Company's interest rate derivative: Notional amount Fixed rate Contract period LIBOR - Swap $ 100,000 0.345 % April 16, 2020 - April 18, 2022 Contingent consideration The Sixth Street PSA provides for potential contingent payments to be paid to the Company if certain cash flow targets are met related to divested oil and natural gas property operations. The Sixth Street Contingent Consideration provides the Company with the right to receive up to a maximum of $93.7 million in additional cash consideration, comprised of potential quarterly payments through June 2027 totaling up to $38.7 million and a potential balloon payment of $55.0 million in June 2027. The fair value of the Sixth Street Contingent Consideration was $35.9 million as of December 31, 2021 and $39.8 million as of March 31, 2022. See Note 3 for further discussion of the Working Interest Sale associated with the Sixth Street Contingent Consideration. The Company's asset acquisition of oil and natural gas properties that closed on April 30, 2020 provided for potential contingent payments to be paid by the Company if the arithmetic average of the monthly settlement WTI NYMEX prices exceed certain thresholds for the contingency period beginning on January 1, 2021 and ending on the earlier of December 31, 2022 or the date the counterparty has received the maximum consideration of $1.2 million. As the maximum thresholds were met, the Company paid the maximum amount of the $1.2 million contingent consideration to the counterparty during the year ended December 31, 2021. At each quarterly reporting period, the Company remeasures contingent consideration with the change in fair value recognized in earnings. |
Fair value measurements
Fair value measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements See the beginning of Note 11 in the 2021 Annual Report for information about the fair value hierarchy levels. Fair value measurement on a recurring basis See Note 8 for further discussion of the Company's derivatives, and see Note 2 in the 2021 Annual Report for the Company's significant accounting policies for derivatives. Balance sheet presentation The following tables present the Company's derivatives by (i) balance sheet classification, (ii) derivative type and (iii) fair value hierarchy level, and provide a total, on a gross basis and a net basis reflected in "Derivatives" on the unaudited consolidated balance sheets as of the dates presented: March 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the unaudited consolidated balance sheets Assets: Current: Commodity $ — $ 18,029 $ — $ 18,029 $ (18,029) $ — Interest rate — 5 — 5 — 5 Contingent consideration — — 5,894 5,894 — 5,894 Noncurrent: Commodity — 315 — 315 (315) — Contingent consideration — — 33,862 33,862 — 33,862 Liabilities: Current: Commodity — (383,285) — (383,285) 18,029 (365,256) Interest rate — — — — — — Noncurrent: Commodity — (17,765) — (17,765) 315 (17,450) Net derivative liability positions $ — $ (382,701) $ 39,756 $ (342,945) $ — $ (342,945) December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the Assets: Current: Commodity $ — $ 21,671 $ — $ 21,671 $ (21,671) $ — Interest rate — — — — — — Contingent consideration — — 4,346 4,346 — 4,346 Noncurrent: Commodity — 1,448 — 1,448 — 1,448 Contingent consideration — — 31,515 31,515 — 31,515 Liabilities: Current: Commodity — (201,428) — (201,428) 21,671 (179,757) Interest rate — (52) — (52) — (52) Noncurrent: Commodity — — — — — — Net derivative liability positions $ — $ (178,361) $ 35,861 $ (142,500) $ — $ (142,500) See Note 11 in the 2021 Annual Report for discussion of the significant Level 2 inputs used in the fair value mark-to-market analysis of commodity, interest rate and contingent consideration derivatives. The Company reviewed the third-party specialist's valuations of commodity, interest rate and contingent consideration derivatives, including the related inputs, and analyzed changes in fair values between reporting dates. The Working Interest Sale provides for potential contingent payments to be paid to the Company. The Sixth Street Contingent Consideration associated with the Working Interest Sale was categorized as Level 3 of the fair value hierarchy, as the Company utilized its own cash flow projections along with a risk-adjusted discount rate generated by a third-party valuation specialist to determine the valuation. The Company reviewed the third-party specialist's valuation, including the related inputs, and analyzed changes in fair values between the Sixth Street Closing Date and the reporting dates. The fair value of the Sixth Street Contingent Consideration was recorded as part of the basis in the oil and natural gas properties divested and as a contingent consideration asset. At each quarterly reporting period prior to the end of the contingency period, the Company will remeasure the Sixth Street Contingent Consideration with the changes in fair value recognized in the earnings for such quarter. See Note 3 for further discussion of the Working Interest Sale associated with the Sixth Street Contingent Consideration. The following table summarizes the changes in contingent consideration derivatives classified as Level 3 measurements for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Balance of Level 3 at beginning of year $ 35,861 $ — Change in net present value of Sixth Street Contingent Consideration 3,895 — Balance of Level 3 at end of period $ 39,756 $ — The Company's acquisition of oil and natural gas properties that closed on April 30, 2020 provided for potential contingent payments to be paid by the Company. During the year ended December 31, 2021, the maximum amount of the $1.2 million contingent consideration was distributed to the counterparty. Fair value measurement on a nonrecurring basis See Note 2 in the 2021 Annual Report for the Level 2 fair value hierarchy input assumptions used in estimating the net realizable value ("NRV") of inventory. There were no impairments of inventory recorded during the three months ended March 31, 2022 and 2021. See Note 11 in the 2021 Annual Report for the Level 3 fair value hierarchy input assumptions used in the fair value measurement of long-lived assets. There were no impairments of long-lived assets recorded during the three months ended March 31, 2022 and 2021. Items not accounted for at fair value The carrying amounts reported on 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, 2022 December 31, 2021 (in thousands) Carrying Fair value (1) Carrying Fair value (1) January 2025 Notes $ 577,913 $ 602,567 $ 577,913 $ 589,471 January 2028 Notes 361,044 388,014 361,044 378,578 July 2029 Notes 400,000 404,112 400,000 390,000 Senior Secured Credit Facility 100,000 99,980 105,000 105,040 Total $ 1,438,957 $ 1,494,673 $ 1,443,957 $ 1,463,089 ______________________________________________________________________________ (1) The fair values of the outstanding notes were determined using the Level 1 fair value hierarchy quoted market prices for each respective instrument as of March 31, 2022 and December 31, 2021. The fair values of the outstanding debt under the Senior Secured Credit Facility were estimated utilizing the Level 2 fair value hierarchy pricing model for similar instruments as of March 31, 2022 and December 31, 2021. |
Net loss per common share
Net loss per common share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net loss per common share | Net loss per common share Basic and diluted net loss per common share are computed by dividing net loss by the weighted-average common shares outstanding for the period. Diluted net 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 9 in the 2021 Annual Report for additional discussion of these awards. For the three months ended March 31, 2022 and March 31, 2021, all of these awards were anti-dilutive due to the Company's net loss and, therefore, were excluded from the calculation of diluted net loss per common share. The following table reflects the calculations of basic and diluted (i) weighted-average common shares outstanding and (ii) net loss per common share for the periods presented: Three months ended March 31, (in thousands, except for per share data) 2022 2021 Net loss (numerator) $ (86,781) $ (75,439) Weighted-average common shares outstanding (denominator): Basic 16,767 11,918 Diluted 16,767 11,918 Net loss per common share: Basic $ (5.18) $ (6.33) Diluted $ (5.18) $ (6.33) |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies From time to time, the Company is subject to various legal proceedings arising in the ordinary course of business, including those that arise from interpretation of federal, state and local laws and regulations affecting the oil and natural gas industry, personal injury claims, title disputes, royalty disputes, contract claims, contamination claims relating to oil and natural gas exploration and development and environmental claims, including claims involving assets previously sold to third parties and no longer part of the Company's current operations. The Company may not have insurance coverage for some of these proceedings and failure to comply with applicable laws and regulations can result in substantial penalties. While many of these matters involve inherent uncertainty, as of the date hereof, the Company believes that any such legal proceedings, if ultimately decided adversely, will not have a material adverse effect on the Company's business, financial position, results of operations or liquidity. See Note 15 in the 2021 Annual Report for further discussion of litigation and environmental and federal, state and local regulations. Drilling rig contracts The Company enters into drilling rig contracts to ensure availability of desired rigs to facilitate drilling plans. The Company has two operating leases for terms of multiple months, both of which 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, 2022 or 2021. As these drilling rig contracts are operating leases with an initial term greater than 12 months, the present value of the future commitment as of March 31, 2022 is included in current and noncurrent "Other liabilities, net" on the unaudited consolidated balance sheet as of March 31, 2022. See Note 5 in the 2021 Annual Report for additional discussion of the Company's leases. 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. A portion of the Company's commitments are related to transportation commitments with a certain pipeline pertaining to the gathering of the Company's production from established acreage that extends into 2024. The Company was unable to satisfy a portion of this particular commitment with produced or purchased oil, therefore, the Company expensed firm transportation payments on excess capacity of $2.1 million and $1.6 million during the three months ended March 31, 2022 and 2021, respectively, which are recorded in "Transportation and marketing expenses" on the unaudited consolidated statement of operations. The Company's estimated aggregate liability of firm transportation payments on excess capacity is $5.4 million as of March 31, 2022, and is included in "Accounts payable and accrued liabilities" on the unaudited consolidated balance sheet. As of March 31, 2022, future firm sale and transportation commitments of $199.3 million are expected to be satisfied and, as such, are not recorded as a liability on the unaudited consolidated balance sheet. Sand purchase commitment During the year ended December 31, 2021, the Company renegotiated an agreement to take delivery of processed sand at a fixed price for one year, which is utilized in the Company's completions activities, from its sand mine that is operated by a third-party contractor. As of March 31, 2022, under the terms of this agreement, the Company is required to purchase a certain volume remaining under its commitment or it will incur a shortfall payment of $3.9 million at the end of the contract period. |
Supplemental cash flow and non-
Supplemental cash flow and non-cash information | 3 Months Ended |
Mar. 31, 2022 | |
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 for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Supplemental cash flow information: Cash paid for interest, net of $1,463 and $449 of capitalized interest, respectively $ 63,057 $ 48,030 Supplemental non-cash investing information: Change in accrued capital expenditures $ 18,433 $ (351) Capitalized share-settled equity-based compensation $ 583 $ 670 Capitalized asset retirement cost $ 181 $ 397 The following table presents supplemental non-cash adjustments information related to operating leases for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Right-of-use assets obtained in exchange for operating lease liabilities (1) $ 9,949 $ — _____________________________________________________________________________ (1) See Note 5 in the 2021 Annual Report for additional discussion of the Company's leases. |
Asset retirement obligations
Asset retirement obligations | 3 Months Ended |
Mar. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligations | Asset retirement obligations See Note 2 in the 2021 Annual Report for discussion of the Company's significant 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) 2022 2021 Liability at beginning of period $ 72,003 $ 68,326 Liabilities added due to acquisitions, drilling, midstream service asset construction and other 181 397 Accretion expense (1) 1,019 1,143 Liabilities settled due to plugging and abandonment or removed due to sale (555) (57) Liability at end of period $ 72,648 $ 69,809 _____________________________________________________________________________ (1) Accretion expense is included in "Other operating expenses" on the unaudited consolidated statements of operations. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company is subject to federal and state income taxes and the Texas franchise tax. As of March 31, 2022, the Company had federal net operating loss ("NOL") carryforwards totaling $2.0 billion, $1.7 billion of which will begin to expire in 2026 and $376.2 million of which will not expire but may be limited in future periods, and state of Oklahoma net operating loss carryforwards totaling $34.4 million that will begin to expire in 2032. If the Company were to experience an "ownership change" as determined under Section 382 of the Internal Revenue Code, the Company's ability to offset taxable income arising after the ownership change with net operating losses arising prior to the ownership change would be limited. For the three months ended March 31, 2022, the Company recorded current tax expense of $1.2 million for Texas franchise taxes. As of March 31, 2022, 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, 2022 and the Company's ability to capitalize intangible drilling costs, rather than expensing these costs and future projections of taxable income. As of March 31, 2022, a total valuation allowance of $455.3 million has been recorded to offset the Company's federal and Oklahoma net deferred tax assets, resulting in a nominal Texas net deferred asset, which is included in "Other noncurrent assets, net" on the unaudited consolidated balance sheets. Since September 30, 2015, the Company has recorded a full valuation allowance against its federal and Oklahoma net deferred tax position. As such, the Company's effective tax rate is 1%, due to the Texas franchise tax. The Company's effective tax rate is affected by changes in valuation allowances, recurring permanent differences and discrete items that may occur in any given year, but are not consistent from year to year. |
Related parties
Related parties | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related parties | Related parties Halliburton The Chairman of the Company's board of directors is on the board of directors of Halliburton Company ("Halliburton"). Halliburton provides drilling and completions services to the Company. The following table presents the capital expenditures for oil and natural gas properties paid to Halliburton included in the unaudited consolidated statements of cash flows for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Capital expenditures for oil and natural gas properties $ 30,141 $ 11,780 |
Subsequent events
Subsequent events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events Senior Secured Credit Facility On April 6, 2022, the Company borrowed an additional $30.0 million and on April 25, 2022, the Company repaid $80.0 million on the Senior Secured Credit Facility. As a result, the outstanding balance under the Senior Secured Credit Facility was $50.0 million as of May 3, 2022. See Note 5 for additional discussion of the Senior Secured Credit Facility. On April 13, 2022, the Company entered into the Eighth Amendment (the "Eighth Amendment") to the Senior Secured Credit Facility. The Eighth Amendment, among other things, (i) increased the borrowing base from $1.0 billion to $1.25 billion and the aggregate elected commitment from $725.0 million to $1.0 billion, (ii) increased, from closing through December 31, 2022, the $50.0 million bond buyback and distributions baskets to $250.0 million, subject to certain conditions, (iii) added an energy transition and technology commercialization investment basket of $25.0 million, subject to certain conditions, (iv) allowed for the designation of unrestricted subsidiaries and (v) amended certain other provisions relating to certain commercial agreements and the administration of the Company's loans, in each case, subject to the terms of the Eighth Amendment and the Senior Secured Credit Facility. Commodity derivatives The following table summarizes the Company's open natural gas derivative positions as of March 31, 2022, updated for derivative transactions entered into from March 31, 2022 through May 3, 2022, for the settlement periods presented: Year 2022 Year 2023 Natural gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 2,750,000 — Weighted-average price ($/MMBtu) $ 2.73 $ — Henry Hub NYMEX - Collars: Volume (MMBtu) 22,000,000 14,600,000 Weighted-average floor price ($/MMBtu) $ 3.09 $ 3.75 Weighted-average ceiling price ($/MMBtu) $ 3.84 $ 7.88 Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: Volume (MMBtu) 21,862,500 14,600,000 Weighted-average differential ($/MMBtu) $ (0.36) $ (1.52) See Note 8 for additional discussion regarding the Company's derivatives. There has been no other derivative activity subsequent to March 31, 2022. |
Organization and basis of pre_2
Organization and basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | 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, 2021 is derived from the Company's 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, 2022, results of operations for the three months ended March 31, 2022 and 2021 and cash flows for the three months ended March 31, 2022 and 2021. 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 2021 Annual Report. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. There was no impact on previously reported total assets, total liabilities, net loss or stockholders' equity for the periods presented. |
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 as of 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. See Note 2 in the 2021 Annual Report for further information regarding the use of estimates and assumptions. |
New accounting standards | New accounting standards The Company considered the applicability and impact of all accounting standard updates ("ASU") issued by the Financial Accounting Standards Board to the Accounting Standards Codification ("ASC") and has determined there are no ASUs that are not yet adopted and meaningful to disclose as of March 31, 2022. Additionally, the Company did not adopt any new ASUs during the three months ended March 31, 2022. |
Net income (loss) per common share | Net loss per common shareBasic and diluted net loss per common share are computed by dividing net loss by the weighted-average common shares outstanding for the period. Diluted net loss per common share reflects the potential dilution of non-vested restricted stock awards, outstanding stock option awards and non-vested performance share awards. |
Acquisitions and divestitures (
Acquisitions and divestitures (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of components of purchase price | The following table presents components of the purchase price, inclusive of customary closing adjustments: (in thousands, except for share and share price data) As of October 18, 2021 Shares of Company common stock 959,691 Company common stock price at the Pioneer Closing Date $ 73.90 Value of Company common stock consideration $ 70,921 Cash consideration $ 131,633 Transaction costs 3,775 Total purchase price $ 206,329 The following table presents components of the purchase price, inclusive of customary closing adjustments: (in thousands, except for share and share price data) As of July 1, 2021 Shares of Company common stock 2,506,964 Company common stock price at the Sabalo/Shad Closing Date $ 95.72 Value of Company common stock consideration $ 239,967 Cash consideration $ 606,126 Transaction costs 17,020 Total purchase price $ 863,113 |
Schedule of final estimate of the fair values of the assets acquired and liabilities assumed | The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed, based on their relative fair values, on the Pioneer Closing Date: (in thousands) As of October 18, 2021 Evaluated properties $ 139,859 Unevaluated properties 74,192 Revenue suspense liabilities assumed (7,722) Allocated purchase price $ 206,329 The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed, based on their relative fair values, on the Sabalo/Shad Closing Date: (in thousands) As of July 1, 2021 Evaluated properties $ 503,005 Unevaluated properties 362,977 Revenue suspense liabilities assumed (4,269) Inventory 1,400 Allocated purchase price $ 863,113 |
Property and equipment (Tables)
Property and equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 December 31, 2021 Evaluated oil and natural gas properties $ 9,149,982 $ 8,968,668 Less accumulated depletion and impairment (7,089,265) (7,019,670) Evaluated oil and natural gas properties, net 2,060,717 1,948,998 Unevaluated oil and natural gas properties not being depleted 156,899 170,033 Midstream service assets 165,099 165,232 Less accumulated depreciation and impairment (70,467) (68,704) Midstream service assets, net 94,632 96,528 Depreciable other fixed assets 45,448 43,381 Less accumulated depreciation and amortization (28,980) (27,692) Depreciable other fixed assets, net 16,468 15,689 Land 18,906 18,901 Total property and equipment, net $ 2,347,622 $ 2,250,149 |
Schedule of costs incurred in the acquisition, exploration and development of oil and natural gas properties | The following table presents incurred capital expenditures in the acquisition, exploration and development of oil and natural gas properties, with asset retirement obligations included in evaluated property acquisition costs and development costs, for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Property acquisition costs: Evaluated $ 4,780 $ — Unevaluated 3,274 — Exploration costs 6,753 3,957 Development costs 161,615 64,492 Total oil and natural gas properties incurred capital expenditures $ 176,422 $ 68,449 |
Schedule of capitalized related employee costs incurred for the purpose of exploring for or developing oil and natural gas properties | The following table presents capitalized employee-related incurred capital expenditures in the acquisition, exploration and development of oil and natural gas properties for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Capitalized employee-related costs $ 4,343 $ 4,241 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table presents the Company's long-term debt and debt issuance costs, net included in "Long-term debt, net" on the unaudited consolidated balance sheets as of the dates presented: March 31, 2022 December 31, 2021 (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 2025 Notes $ 577,913 $ (5,816) $ 572,097 $ 577,913 $ (6,345) $ 571,568 January 2028 Notes 361,044 (4,814) 356,230 361,044 (5,024) 356,020 July 2029 Notes 400,000 (6,506) 393,494 400,000 (6,730) 393,270 Senior Secured Credit Facility (1) 100,000 — 100,000 105,000 — 105,000 Total $ 1,438,957 $ (17,136) $ 1,421,821 $ 1,443,957 $ (18,099) $ 1,425,858 ______________________________________________________________________________ (1) Debt issuance costs, net related to the Senior Secured Credit Facility of $7.5 million and $8.1 million as of March 31, 2022 and December 31, 2021, respectively, are included in "Other noncurrent assets, net" on the unaudited consolidated balance sheets. |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of activity for restricted stock awards, performance units and shares and stock options | The following table presents activity for equity-based compensation awards for the three months ended March 31, 2022: Equity Awards Liability Awards (in thousands) Restricted Stock Awards Stock Option Awards Performance Share Awards (1)(2) Performance Unit Awards Phantom Unit Awards (3) Outstanding as of December 31, 2021 350 7 72 209 33 Granted 232 — 62 — — Forfeited (4) — (2) — — Vested (125) — (70) — (15) Expired or canceled — (2) — — — Outstanding as of March 31, 2022 453 5 62 209 18 _____________________________________________________________________________ (1) The performance share awards granted on February 28, 2019 had a performance period of January 1, 2019 to December 31, 2021 and, as their market and performance criteria were satisfied, resulted in a 107% payout. As such, the granted awards vested and were converted into 75,107 shares of the Company's common stock during the three months ended March 31, 2022 based on this 107% payout. (2) On February 22, 2022, the Company granted performance share awards with a performance period of January 1, 2022 through December 31, 2024. The market criteria consists of: (i) annual relative total shareholder return comparing the Company's shareholder return to the shareholder return of the exploration and production companies listed in the Russell 2000 Index and (ii) annual absolute total shareholder return. The performance criteria for these awards consists of: (i) earnings before interest, taxes, depreciation, amortization and exploration expense and three-year total debt reduction, (ii) growth in inventory and (iii) emissions reduction targets. Any shares earned are expected to be paid in equity during the first quarter following the completion of the requisite service period, based on the achievement of market and performance criteria, and the payout can range from 0% to 225%. |
Schedule of allocated share-based compensation costs | The following table reflects equity-based compensation expense for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Equity awards: Restricted stock awards $ 2,175 $ 1,963 Performance share awards 461 768 Stock option awards — 7 Total share-settled equity-based compensation, gross $ 2,636 $ 2,738 Less amounts capitalized (583) (670) Total share-settled equity-based compensation, net $ 2,053 $ 2,068 Liability awards: Performance unit awards $ 5,566 $ 820 Phantom unit awards 609 506 Total cash-settled equity-based compensation, gross $ 6,175 $ 1,326 Less amounts capitalized (47) (198) Total cash-settled equity-based compensation, net $ 6,128 $ 1,128 Total equity-based compensation, net $ 8,181 $ 3,196 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of gain (loss) on derivatives | The following table summarizes components of the Company's loss on derivatives, net by type of derivative instrument for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Commodity $ (329,724) $ (154,033) Interest rate 13 4 Contingent consideration 3,895 (336) Loss on derivatives, net $ (325,816) $ (154,365) |
Schedule of open positions and derivatives in place | The following table summarizes open commodity derivative positions as of March 31, 2022, for commodity derivatives that were entered into through March 31, 2022, for the settlement periods presented: Remaining Year 2022 Year 2023 Oil: WTI NYMEX - Swaps: Volume (Bbl) 1,068,000 — Weighted-average price ($/Bbl) $ 81.57 $ — WTI NYMEX - Collars: Volume (Bbl) 2,557,500 3,997,000 Weighted-average floor price ($/Bbl) $ 58.23 $ 66.37 Weighted-average ceiling price ($/Bbl) $ 69.39 $ 81.16 Brent ICE - Swaps: Volume (Bbl) 3,107,500 — Weighted-average price ($/Bbl) $ 48.34 $ — Brent ICE - Collars: Volume (Bbl) 1,168,750 — Weighted-average floor price ($/Bbl) $ 56.65 $ — Weighted-average ceiling price ($/Bbl) $ 65.44 $ — NGL: Purity Ethane - Swaps: Volume (Bbl) 1,155,000 — Weighted-average price ($/Bbl) $ 11.42 $ — Non-TET Propane - Swaps: Volume (Bbl) 880,000 — Weighted-average price ($/Bbl) $ 35.91 $ — Non-TET Normal Butane - Swaps: Volume (Bbl) 275,000 — Weighted-average price ($/Bbl) $ 41.58 $ — Non-TET Isobutane - Swaps: Volume (Bbl) 82,500 — Weighted-average price ($/Bbl) $ 42.00 $ — Non-TET Natural Gasoline - Swaps: Volume (Bbl) 275,000 — Weighted-average price ($/Bbl) $ 60.65 $ — Natural gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 2,750,000 — Weighted-average price ($/MMBtu) $ 2.73 $ — Henry Hub NYMEX - Collars: Volume (MMBtu) 22,000,000 3,650,000 Weighted-average floor price ($/MMBtu) $ 3.09 $ 3.00 Weighted-average ceiling price ($/MMBtu) $ 3.84 $ 4.45 Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: Volume (MMBtu) 21,862,500 — Weighted-average differential ($/MMBtu) $ (0.36) $ — The following table summarizes the Company's interest rate derivative: Notional amount Fixed rate Contract period LIBOR - Swap $ 100,000 0.345 % April 16, 2020 - April 18, 2022 |
Fair value measurements (Tables
Fair value measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis | The following tables present the Company's derivatives by (i) balance sheet classification, (ii) derivative type and (iii) fair value hierarchy level, and provide a total, on a gross basis and a net basis reflected in "Derivatives" on the unaudited consolidated balance sheets as of the dates presented: March 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the unaudited consolidated balance sheets Assets: Current: Commodity $ — $ 18,029 $ — $ 18,029 $ (18,029) $ — Interest rate — 5 — 5 — 5 Contingent consideration — — 5,894 5,894 — 5,894 Noncurrent: Commodity — 315 — 315 (315) — Contingent consideration — — 33,862 33,862 — 33,862 Liabilities: Current: Commodity — (383,285) — (383,285) 18,029 (365,256) Interest rate — — — — — — Noncurrent: Commodity — (17,765) — (17,765) 315 (17,450) Net derivative liability positions $ — $ (382,701) $ 39,756 $ (342,945) $ — $ (342,945) December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the Assets: Current: Commodity $ — $ 21,671 $ — $ 21,671 $ (21,671) $ — Interest rate — — — — — — Contingent consideration — — 4,346 4,346 — 4,346 Noncurrent: Commodity — 1,448 — 1,448 — 1,448 Contingent consideration — — 31,515 31,515 — 31,515 Liabilities: Current: Commodity — (201,428) — (201,428) 21,671 (179,757) Interest rate — (52) — (52) — (52) Noncurrent: Commodity — — — — — — Net derivative liability positions $ — $ (178,361) $ 35,861 $ (142,500) $ — $ (142,500) |
Schedule of changes in contingent consideration derivatives | The following table summarizes the changes in contingent consideration derivatives classified as Level 3 measurements for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Balance of Level 3 at beginning of year $ 35,861 $ — Change in net present value of Sixth Street Contingent Consideration 3,895 — Balance of Level 3 at end of period $ 39,756 $ — |
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, 2022 December 31, 2021 (in thousands) Carrying Fair value (1) Carrying Fair value (1) January 2025 Notes $ 577,913 $ 602,567 $ 577,913 $ 589,471 January 2028 Notes 361,044 388,014 361,044 378,578 July 2029 Notes 400,000 404,112 400,000 390,000 Senior Secured Credit Facility 100,000 99,980 105,000 105,040 Total $ 1,438,957 $ 1,494,673 $ 1,443,957 $ 1,463,089 ______________________________________________________________________________ (1) The fair values of the outstanding notes were determined using the Level 1 fair value hierarchy quoted market prices for each respective instrument as of March 31, 2022 and December 31, 2021. The fair values of the outstanding debt under the Senior Secured Credit Facility were estimated utilizing the Level 2 fair value hierarchy pricing model for similar instruments as of March 31, 2022 and December 31, 2021. |
Net loss per common share (Tabl
Net loss per common share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted weighted-average common shares outstanding and net loss per common share | The following table reflects the calculations of basic and diluted (i) weighted-average common shares outstanding and (ii) net loss per common share for the periods presented: Three months ended March 31, (in thousands, except for per share data) 2022 2021 Net loss (numerator) $ (86,781) $ (75,439) Weighted-average common shares outstanding (denominator): Basic 16,767 11,918 Diluted 16,767 11,918 Net loss per common share: Basic $ (5.18) $ (6.33) Diluted $ (5.18) $ (6.33) |
Supplemental cash flow and no_2
Supplemental cash flow and non-cash information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Supplemental cash flow information: Cash paid for interest, net of $1,463 and $449 of capitalized interest, respectively $ 63,057 $ 48,030 Supplemental non-cash investing information: Change in accrued capital expenditures $ 18,433 $ (351) Capitalized share-settled equity-based compensation $ 583 $ 670 Capitalized asset retirement cost $ 181 $ 397 The following table presents supplemental non-cash adjustments information related to operating leases for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Right-of-use assets obtained in exchange for operating lease liabilities (1) $ 9,949 $ — _____________________________________________________________________________ (1) See Note 5 in the 2021 Annual Report for additional discussion of the Company's leases. |
Asset retirement obligations (T
Asset retirement obligations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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) 2022 2021 Liability at beginning of period $ 72,003 $ 68,326 Liabilities added due to acquisitions, drilling, midstream service asset construction and other 181 397 Accretion expense (1) 1,019 1,143 Liabilities settled due to plugging and abandonment or removed due to sale (555) (57) Liability at end of period $ 72,648 $ 69,809 _____________________________________________________________________________ (1) Accretion expense is included in "Other operating expenses" on the unaudited consolidated statements of operations. |
Related parties (Tables)
Related parties (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The following table presents the capital expenditures for oil and natural gas properties paid to Halliburton included in the unaudited consolidated statements of cash flows for the periods presented: Three months ended March 31, (in thousands) 2022 2021 Capital expenditures for oil and natural gas properties $ 30,141 $ 11,780 |
Subsequent events (Tables)
Subsequent events (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Schedule of subsequent events | The following table summarizes the Company's open natural gas derivative positions as of March 31, 2022, updated for derivative transactions entered into from March 31, 2022 through May 3, 2022, for the settlement periods presented: Year 2022 Year 2023 Natural gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 2,750,000 — Weighted-average price ($/MMBtu) $ 2.73 $ — Henry Hub NYMEX - Collars: Volume (MMBtu) 22,000,000 14,600,000 Weighted-average floor price ($/MMBtu) $ 3.09 $ 3.75 Weighted-average ceiling price ($/MMBtu) $ 3.84 $ 7.88 Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: Volume (MMBtu) 21,862,500 14,600,000 Weighted-average differential ($/MMBtu) $ (0.36) $ (1.52) |
Organization and basis of pre_3
Organization and basis of presentation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022operating_segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Acquisitions and divestitures -
Acquisitions and divestitures - Narrative (Details) $ / shares in Units, $ in Thousands | Oct. 18, 2021USD ($)$ / sharesshares | Jul. 01, 2021USD ($)shares | Dec. 31, 2021USD ($)$ / shares | Mar. 31, 2022USD ($)$ / shares | Sep. 17, 2021alocation | May 07, 2021alocationagreement |
Asset Acquisition [Line Items] | ||||||
Common stock par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Asset Acquisition [Line Items] | ||||||
Average working interest (as a percent) | 37.50% | |||||
Sixth Street PSA | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Asset Acquisition [Line Items] | ||||||
Average working interest (as a percent) | 37.50% | |||||
Proceeds from dispositions after transaction costs | $ 405,000 | |||||
Aggregate quarterly payments of additional cash contingent consideration | 38,700 | |||||
Balloon payment of additional cash contingent consideration | 55,000 | |||||
Fair value of contingent consideration | 33,800 | $ 35,900 | $ 39,800 | |||
Gain on disposal | 93,500 | |||||
Transaction costs associated with disposition | 11,600 | |||||
Sixth Street PSA | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Maximum | ||||||
Asset Acquisition [Line Items] | ||||||
Additional cash contingent consideration | 93,700 | |||||
Aggregate quarterly payments of additional cash contingent consideration | $ 38,700 | |||||
Sixth Street PSA | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Minimum | ||||||
Asset Acquisition [Line Items] | ||||||
Pre-acquisition reserves (as a percent) | 25.00% | |||||
Pioneer Acquisition | ||||||
Asset Acquisition [Line Items] | ||||||
Area of land (in acres) | a | 20,000 | |||||
Consideration transferred in acquisition | $ 206,329 | |||||
Payments to acquire productive assets | $ 131,633 | |||||
Stock issued in asset acquisition (shares) | shares | 959,691 | |||||
Transaction related expenses | $ 3,775 | |||||
Pioneer - Glasscock County Gross - Operated Locations | ||||||
Asset Acquisition [Line Items] | ||||||
Number of locations | location | 135 | |||||
Pioneer - Glasscock County Net - Operated Locations | ||||||
Asset Acquisition [Line Items] | ||||||
Number of locations | location | 121 | |||||
Sabalo/Shad | ||||||
Asset Acquisition [Line Items] | ||||||
Area of land (in acres) | a | 21,000 | |||||
Consideration transferred in acquisition | $ 863,113 | |||||
Payments to acquire productive assets | $ 606,126 | |||||
Stock issued in asset acquisition (shares) | shares | 2,506,964 | |||||
Transaction related expenses | $ 17,020 | |||||
Number of purchase and sale agreements | agreement | 2 | |||||
Sabalo and Shad - Howard and Borden County Gross - Operated Locations | ||||||
Asset Acquisition [Line Items] | ||||||
Number of locations | location | 120 | |||||
Sabalo and Shad - Howard and Borden County Net - Operated Locations | ||||||
Asset Acquisition [Line Items] | ||||||
Number of locations | location | 109 | |||||
Sabalo and Shad - Howard and Borden County Gross - Non-Operated Locations | ||||||
Asset Acquisition [Line Items] | ||||||
Number of locations | location | 150 | |||||
Sabalo and Shad - Howard and Borden County Net - Non-Operated Locations | ||||||
Asset Acquisition [Line Items] | ||||||
Number of locations | location | 18 | |||||
Pioneer Acquisition - Tag-Along Sales Rights | ||||||
Asset Acquisition [Line Items] | ||||||
Payments to acquire productive assets | $ 2,900 |
Acquisitions and divestitures_2
Acquisitions and divestitures - Purchase price (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 18, 2021 | Jul. 01, 2021 |
Pioneer Acquisition | ||
Asset Acquisition [Line Items] | ||
Shares of Company common stock (shares) | 959,691 | |
Cash consideration | $ 131,633 | |
Transaction costs | 3,775 | |
Total purchase price | $ 206,329 | |
Pioneer Acquisition | Common stock | ||
Asset Acquisition [Line Items] | ||
Shares of Company common stock (shares) | 959,691 | |
Company common stock price at the Sabalo/Shad Closing Date (in USD per share) | $ 73.90 | |
Value of Company common stock consideration | $ 70,921 | |
Sabalo/Shad | ||
Asset Acquisition [Line Items] | ||
Shares of Company common stock (shares) | 2,506,964 | |
Cash consideration | $ 606,126 | |
Transaction costs | 17,020 | |
Total purchase price | $ 863,113 | |
Sabalo/Shad | Common stock | ||
Asset Acquisition [Line Items] | ||
Shares of Company common stock (shares) | 2,506,964 | |
Company common stock price at the Sabalo/Shad Closing Date (in USD per share) | $ 95.72 | |
Value of Company common stock consideration | $ 239,967 |
Acquisitions and divestitures_3
Acquisitions and divestitures - Assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Oct. 18, 2021 | Jul. 01, 2021 |
Sabalo/Shad | ||
Asset Acquisition [Line Items] | ||
Revenue suspense liabilities assumed | $ (4,269) | |
Inventory | 1,400 | |
Allocated purchase price | 863,113 | |
Sabalo/Shad | Evaluated properties | ||
Asset Acquisition [Line Items] | ||
Properties | 503,005 | |
Sabalo/Shad | Unevaluated Properties | ||
Asset Acquisition [Line Items] | ||
Properties | $ 362,977 | |
Pioneer Acquisition | ||
Asset Acquisition [Line Items] | ||
Revenue suspense liabilities assumed | $ (7,722) | |
Allocated purchase price | 206,329 | |
Pioneer Acquisition | Evaluated properties | ||
Asset Acquisition [Line Items] | ||
Properties | 139,859 | |
Pioneer Acquisition | Unevaluated Properties | ||
Asset Acquisition [Line Items] | ||
Properties | $ 74,192 |
Property and equipment - Compan
Property and equipment - Company Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Evaluated oil and natural gas properties | $ 9,149,982 | $ 8,968,668 |
Less accumulated depletion and impairment | (7,089,265) | (7,019,670) |
Evaluated oil and natural gas properties, net | 2,060,717 | 1,948,998 |
Unevaluated oil and natural gas properties not being depleted | 156,899 | 170,033 |
Midstream service assets, net | 94,632 | 96,528 |
Property, Plant and Equipment, Other, Net, Total | 35,374 | 34,590 |
Total property and equipment, net | 2,347,622 | 2,250,149 |
Midstream service assets | ||
Property, Plant and Equipment [Line Items] | ||
Midstream service assets | 165,099 | 165,232 |
Less accumulated depreciation and impairment | (70,467) | (68,704) |
Depreciable other fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and impairment | (28,980) | (27,692) |
Depreciable other fixed assets | 45,448 | 43,381 |
Property, Plant and Equipment, Other, Net, Total | 16,468 | 15,689 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Other, Net, Total | $ 18,906 | $ 18,901 |
Property and equipment - Narrat
Property and equipment - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Full cost ceiling impairment | $ 0 | $ 0 |
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, 2022 | Mar. 31, 2021 | |
Property acquisition costs: | ||
Evaluated | $ 4,780 | $ 0 |
Unevaluated | 3,274 | 0 |
Exploration costs | 6,753 | 3,957 |
Development costs | 161,615 | 64,492 |
Total oil and natural gas properties incurred capital expenditures | $ 176,422 | $ 68,449 |
Property and equipment - Other
Property and equipment - Other Property and Equipment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Capitalized employee-related costs | $ 4,343 | $ 4,241 |
Debt - Long-term Debt, Net (Det
Debt - Long-term Debt, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,438,957 | $ 1,443,957 |
Debt issuance costs, net | (17,136) | (18,099) |
Long-term debt, net | 1,421,821 | 1,425,858 |
Senior Notes | January 2025 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 577,913 | 577,913 |
Debt issuance costs, net | (5,816) | (6,345) |
Long-term debt, net | 572,097 | 571,568 |
Senior Notes | January 2028 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 361,044 | 361,044 |
Debt issuance costs, net | (4,814) | (5,024) |
Long-term debt, net | 356,230 | 356,020 |
Senior Notes | July 2029 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 400,000 | 400,000 |
Debt issuance costs, net | (6,506) | (6,730) |
Long-term debt, net | 393,494 | 393,270 |
Secured Debt | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 100,000 | 105,000 |
Debt issuance costs, net | 0 | 0 |
Long-term debt, net | 100,000 | 105,000 |
Secured Debt | Senior Secured Credit Facility | Other Noncurrent Assets | ||
Debt Instrument [Line Items] | ||
Debt issuance costs related to line of credit arrangements | $ 7,500 | $ 8,100 |
Debt - July 2029 Notes (Details
Debt - July 2029 Notes (Details) - Senior Notes - July 2029 Notes $ in Millions | Jul. 16, 2021USD ($) |
Debt Instrument [Line Items] | |
Face amount of debt | $ 400 |
Interest rate (as a percent) | 7.75% |
Proceeds from senior notes | $ 392 |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facility (Details) - Secured Debt | Mar. 31, 2022USD ($)letter_of_credit | Dec. 31, 2021USD ($)letter_of_credit |
Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum credit amount | $ 2,000,000,000 | |
Borrowing base | 1,000,000,000 | |
Aggregate elected commitment | 725,000,000 | |
Amount of debt outstanding | $ 100,000,000 | |
Credit facility, interest rate at period end (as a percent) | 3.00% | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum credit amount | $ 80,000,000 | |
Number of letter of credit outstanding | letter_of_credit | 1 | 1 |
Letters of credit outstanding | $ 44,100,000 | $ 44,100,000 |
Debt - Debt Issuance Costs (Det
Debt - Debt Issuance Costs (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Write-off of debt issuance costs | $ 0 | |
Total debt issuance costs, including line of credit | 24,700,000 | $ 26,200,000 |
Accumulated amortization | $ 28,700,000 | $ 27,200,000 |
Stockholders' equity (Details)
Stockholders' equity (Details) - At-the-Market Offering - USD ($) $ in Millions | Feb. 23, 2021 | Mar. 31, 2021 |
Class of Stock [Line Items] | ||
Consideration received from sale of stock | $ 26.9 | |
Stock issued in sale (in shares) | 723,579 | |
Maximum | ||
Class of Stock [Line Items] | ||
Consideration received from sale of stock | $ 75 |
Equity Incentive Plan - Equity
Equity Incentive Plan - Equity Incentive Plan (Details) - Equity Incentive Plan - shares | May 20, 2021 | May 19, 2021 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock authorized for issuance (in shares) | 1,492,500 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock authorized for issuance (in shares) | 2,432,500 |
Equity Incentive Plan - Activit
Equity Incentive Plan - Activity for Restricted Stock Awards, Performance Units and Shares and Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 36 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 05, 2022 | Mar. 01, 2022 | |
Stock option awards | ||||
Outstanding at beginning of period (in shares) | 7,000 | |||
Expired or canceled (in shares) | (2,000) | |||
Outstanding at end of period (in shares) | 5,000 | 7,000 | ||
Closing stock price (in USD per share) | $ 83 | $ 76.60 | ||
Stock-based compensation not yet recognized | $ 39.7 | |||
Stock-based compensation, amount expected to be settled in cash | $ 14 | |||
Recognition period for costs not yet recognized | 2 years 3 months 10 days | |||
February 28, 2019 | ||||
Stock option awards | ||||
Overall payout (as a percent) | 107.00% | 107.00% | ||
February 22, 2022 | Minimum | ||||
Stock option awards | ||||
Overall payout (as a percent) | 0.00% | |||
February 22, 2022 | Maximum | ||||
Stock option awards | ||||
Overall payout (as a percent) | 225.00% | |||
Restricted stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 350,000 | |||
Granted (in shares) | 232,000 | |||
Forfeited (in shares) | (4,000) | |||
Vested (in shares) | (125,000) | |||
Outstanding at end of period (in shares) | 453,000 | 350,000 | ||
Performance share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 72,000 | |||
Granted (in shares) | 62,000 | |||
Forfeited (in shares) | (2,000) | |||
Vested (in shares) | (70,000) | |||
Outstanding at end of period (in shares) | 62,000 | 72,000 | ||
Stock option awards | ||||
Performance share conversion (in shares) | 75,107 | |||
Performance unit awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 209,000 | |||
Outstanding at end of period (in shares) | 209,000 | 209,000 | ||
Phantom unit awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 33,000 | |||
Vested (in shares) | (15,000) | |||
Outstanding at end of period (in shares) | 18,000 | 33,000 |
Equity Incentive Plan - Equity-
Equity Incentive Plan - Equity-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Less amounts capitalized | $ (583) | $ (670) |
Total equity-based compensation, net | 8,181 | 3,196 |
Share-settled | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | 2,636 | 2,738 |
Less amounts capitalized | (583) | (670) |
Total equity-based compensation, net | 2,053 | 2,068 |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | 2,175 | 1,963 |
Performance share awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | 461 | 768 |
Stock option awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | 0 | 7 |
Cash-settled | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | 6,175 | 1,326 |
Less amounts capitalized | (47) | (198) |
Total equity-based compensation, net | 6,128 | 1,128 |
Performance unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | 5,566 | 820 |
Phantom unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | $ 609 | $ 506 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Millions | Dec. 31, 2022USD ($) | Mar. 31, 2022USD ($)derivative | Dec. 31, 2021USD ($) | Jul. 01, 2021USD ($) |
Derivative [Line Items] | ||||
Number of types of derivative instruments | derivative | 3 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Glasscock and Reagan County - Working Interest Sale in Oil and Gas Properties | Maximum | ||||
Derivative [Line Items] | ||||
Additional cash contingent consideration | $ 93.7 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Sixth Street PSA | ||||
Derivative [Line Items] | ||||
Aggregate quarterly payments of additional cash contingent consideration | 38.7 | |||
Balloon payment of additional cash contingent consideration | 55 | |||
Fair value of contingent consideration | $ 39.8 | $ 35.9 | 33.8 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Sixth Street PSA | Maximum | ||||
Derivative [Line Items] | ||||
Additional cash contingent consideration | 93.7 | |||
Aggregate quarterly payments of additional cash contingent consideration | $ 38.7 | |||
Commodity - Oil | WTI NYMEX | Oil put January 2021 - December 2022 | Not Designated as Hedges | Howard County Net Acres | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 1.2 | |||
Commodity - Oil | WTI NYMEX | Oil put January 2021 - December 2022 | Forecast | Not Designated as Hedges | Howard County Net Acres | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 1.2 |
Derivatives - Gain (Loss) on De
Derivatives - Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Loss on derivatives, net | $ (325,816) | $ (154,365) |
Commodity | ||
Derivative [Line Items] | ||
Loss on derivatives, net | (329,724) | (154,033) |
Interest rate | ||
Derivative [Line Items] | ||
Loss on derivatives, net | 13 | 4 |
Contingent consideration | ||
Derivative [Line Items] | ||
Loss on derivatives, net | $ 3,895 | $ (336) |
Derivatives - Summary (Details)
Derivatives - Summary (Details) - Forecast - Outstanding at End of Period - Not Designated as Hedges | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022MMBTU$ / MMBTU$ / bblbbl | Dec. 31, 2023MMBTU$ / MMBTU$ / bblbbl | |
Commodity - Oil | WTI NYMEX | Swap | ||
Derivative [Line Items] | ||
Volume (Bbl) | bbl | 1,068,000 | 0 |
Weighted-average price/differential (in USD per unit) | 81.57 | 0 |
Commodity - Oil | WTI NYMEX | Collar | ||
Derivative [Line Items] | ||
Volume (Bbl) | bbl | 2,557,500 | 3,997,000 |
Commodity - Oil | WTI NYMEX | Collar | Floor | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | 58.23 | 66.37 |
Commodity - Oil | WTI NYMEX | Collar | Ceiling | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | 69.39 | 81.16 |
Commodity - Oil | Brent ICE | Swap | ||
Derivative [Line Items] | ||
Volume (Bbl) | bbl | 3,107,500 | 0 |
Weighted-average price/differential (in USD per unit) | 48.34 | 0 |
Commodity - Oil | Brent ICE | Collar | ||
Derivative [Line Items] | ||
Volume (Bbl) | bbl | 1,168,750 | 0 |
Commodity - Oil | Brent ICE | Collar | Floor | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | 56.65 | 0 |
Commodity - Oil | Brent ICE | Collar | Ceiling | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | 65.44 | 0 |
Commodity - NGL | Swap | Ethane | ||
Derivative [Line Items] | ||
Volume (Bbl) | bbl | 1,155,000 | 0 |
Weighted-average price/differential (in USD per unit) | 11.42 | 0 |
Commodity - NGL | Swap | Propane | ||
Derivative [Line Items] | ||
Volume (Bbl) | bbl | 880,000 | 0 |
Weighted-average price/differential (in USD per unit) | 35.91 | 0 |
Commodity - NGL | Swap | Normal Butane | ||
Derivative [Line Items] | ||
Volume (Bbl) | bbl | 275,000 | 0 |
Weighted-average price/differential (in USD per unit) | 41.58 | 0 |
Commodity - NGL | Swap | Isobutane | ||
Derivative [Line Items] | ||
Volume (Bbl) | bbl | 82,500 | 0 |
Weighted-average price/differential (in USD per unit) | 42 | 0 |
Commodity - NGL | Swap | Natural Gasoline | ||
Derivative [Line Items] | ||
Volume (Bbl) | bbl | 275,000 | 0 |
Weighted-average price/differential (in USD per unit) | 60.65 | 0 |
Commodity - Natural gas | Henry Hub NYMEX | Swap | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / MMBTU | 2.73 | 0 |
Volume (MMBtu) | MMBTU | 2,750,000 | 0 |
Commodity - Natural gas | Henry Hub NYMEX | Collar | ||
Derivative [Line Items] | ||
Volume (MMBtu) | MMBTU | 22,000,000 | 3,650,000 |
Commodity - Natural gas | Henry Hub NYMEX | Collar | Floor | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / MMBTU | 3.09 | 3 |
Commodity - Natural gas | Henry Hub NYMEX | Collar | Ceiling | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / MMBTU | 3.84 | 4.45 |
Commodity - Natural gas | Waha Inside FERC to Henry Hub NYMEX | Basis Swap | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / MMBTU | (0.36) | 0 |
Volume (MMBtu) | MMBTU | 21,862,500 | 0 |
Derivatives - Derivatives Enter
Derivatives - Derivatives Entered into (Details) - Interest Rate Swap - Not Designated as Hedges $ in Thousands | Mar. 31, 2022USD ($) |
Derivative [Line Items] | |
Notional amount of derivative | $ 100,000 |
Fixed rate (as a percent) | 0.345% |
Fair value measurements - Fair
Fair value measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Net fair value presented on the unaudited consolidated balance sheets | $ 5,899 | $ 4,346 |
Net fair value presented on the unaudited consolidated balance sheets | 33,862 | 32,963 |
Liabilities: | ||
Net fair value presented on the unaudited consolidated balance sheets | (365,256) | (179,809) |
Net fair value presented on the unaudited consolidated balance sheets | (17,450) | 0 |
Net derivative liability positions | (342,945) | (142,500) |
Commodity Derivatives | ||
Assets: | ||
Net fair value presented on the unaudited consolidated balance sheets | 0 | 0 |
Net fair value presented on the unaudited consolidated balance sheets | 0 | 1,448 |
Liabilities: | ||
Net fair value presented on the unaudited consolidated balance sheets | (365,256) | (179,757) |
Net fair value presented on the unaudited consolidated balance sheets | (17,450) | 0 |
Interest rate | ||
Assets: | ||
Net fair value presented on the unaudited consolidated balance sheets | 5 | 0 |
Liabilities: | ||
Net fair value presented on the unaudited consolidated balance sheets | 0 | (52) |
Commodity - Oil | Contingent Consideration | ||
Assets: | ||
Net fair value presented on the unaudited consolidated balance sheets | 5,894 | 4,346 |
Net fair value presented on the unaudited consolidated balance sheets | 33,862 | 31,515 |
Current Assets | Commodity Derivatives | ||
Assets: | ||
Total gross fair value | 18,029 | 21,671 |
Amounts offset | (18,029) | (21,671) |
Current Assets | Interest rate | ||
Assets: | ||
Total gross fair value | 5 | 0 |
Amounts offset | 0 | 0 |
Current Assets | Commodity - Oil | Contingent Consideration | ||
Assets: | ||
Total gross fair value | 5,894 | 4,346 |
Amounts offset | 0 | 0 |
Noncurrent Assets | Commodity Derivatives | ||
Assets: | ||
Total gross fair value | 315 | 1,448 |
Amounts offset | (315) | 0 |
Noncurrent Assets | Commodity - Oil | Contingent Consideration | ||
Assets: | ||
Total gross fair value | 33,862 | 31,515 |
Amounts offset | 0 | 0 |
Current Liabilities | Commodity Derivatives | ||
Liabilities: | ||
Total gross fair value | (383,285) | (201,428) |
Amounts offset | 18,029 | 21,671 |
Current Liabilities | Interest rate | ||
Liabilities: | ||
Total gross fair value | 0 | (52) |
Amounts offset | 0 | 0 |
Noncurrent Liabilities | Commodity Derivatives | ||
Liabilities: | ||
Total gross fair value | (17,765) | 0 |
Amounts offset | 315 | 0 |
Level 1 | ||
Liabilities: | ||
Net derivative liability positions | 0 | 0 |
Level 1 | Current Assets | Commodity Derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Assets | Interest rate | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Assets | Commodity - Oil | Contingent Consideration | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 1 | Noncurrent Assets | Commodity Derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 1 | Noncurrent Assets | Commodity - Oil | Contingent Consideration | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Liabilities | Commodity Derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Liabilities | Interest rate | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 1 | Noncurrent Liabilities | Commodity Derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 2 | ||
Liabilities: | ||
Net derivative liability positions | (382,701) | (178,361) |
Level 2 | Current Assets | Commodity Derivatives | ||
Assets: | ||
Total gross fair value | 18,029 | 21,671 |
Level 2 | Current Assets | Interest rate | ||
Assets: | ||
Total gross fair value | 5 | 0 |
Level 2 | Current Assets | Commodity - Oil | Contingent Consideration | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 2 | Noncurrent Assets | Commodity Derivatives | ||
Assets: | ||
Total gross fair value | 315 | 1,448 |
Level 2 | Noncurrent Assets | Commodity - Oil | Contingent Consideration | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 2 | Current Liabilities | Commodity Derivatives | ||
Liabilities: | ||
Total gross fair value | (383,285) | (201,428) |
Level 2 | Current Liabilities | Interest rate | ||
Liabilities: | ||
Total gross fair value | 0 | (52) |
Level 2 | Noncurrent Liabilities | Commodity Derivatives | ||
Liabilities: | ||
Total gross fair value | (17,765) | 0 |
Level 3 | ||
Liabilities: | ||
Net derivative liability positions | 39,756 | 35,861 |
Level 3 | Current Assets | Commodity Derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 3 | Current Assets | Interest rate | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 3 | Current Assets | Commodity - Oil | Contingent Consideration | ||
Assets: | ||
Total gross fair value | 5,894 | 4,346 |
Level 3 | Noncurrent Assets | Commodity Derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 3 | Noncurrent Assets | Commodity - Oil | Contingent Consideration | ||
Assets: | ||
Total gross fair value | 33,862 | 31,515 |
Level 3 | Current Liabilities | Commodity Derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 3 | Current Liabilities | Interest rate | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 3 | Noncurrent Liabilities | Commodity Derivatives | ||
Liabilities: | ||
Total gross fair value | $ 0 | $ 0 |
Fair value measurements - Chang
Fair value measurements - Changes in Contingent Consideration (Details) - Level 3 - Contingent Consideration Derivative - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Change in Amount of Contingent Consideration, Liability [Roll Forward] | ||
Balance of Level 3 at beginning of year | $ 35,861 | $ 0 |
Change in net present value of Sixth Street Contingent Consideration | 3,895 | 0 |
Balance of Level 3 at end of period | $ 39,756 | $ 0 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Commodity - Oil | Oil put January 2021 - December 2022 | WTI NYMEX | Howard County Net Acres | Not Designated as Hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional amount of derivative | $ 1.2 | ||
Level 2 | Nonrecurring | Line-Fill and Other Inventories | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment expense | $ 0 | $ 0 | |
Level 3 | Nonrecurring | Long-Lived Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment expense | $ 0 | $ 0 |
Fair value measurements - Carry
Fair value measurements - Carrying Amount of Debt Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Carrying amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 1,438,957 | $ 1,443,957 |
Carrying amount | Senior Secured Credit Facility | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 100,000 | 105,000 |
Carrying amount | January 2025 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 577,913 | 577,913 |
Carrying amount | January 2028 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 361,044 | 361,044 |
Carrying amount | July 2029 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 400,000 | 400,000 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 1,494,673 | 1,463,089 |
Fair value | Senior Secured Credit Facility | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 99,980 | 105,040 |
Fair value | January 2025 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 602,567 | 589,471 |
Fair value | January 2028 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 388,014 | 378,578 |
Fair value | July 2029 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 404,112 | $ 390,000 |
Net loss per common share (Deta
Net loss per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net loss (numerator) | $ (86,781) | $ (75,439) |
Weighted-average common shares outstanding (denominator): | ||
Basic (in shares) | 16,767 | 11,918 |
Diluted (in shares) | 16,767 | 11,918 |
Net loss per common share: | ||
Basic (in USD per share) | $ (5.18) | $ (6.33) |
Diluted (in USD per share) | $ (5.18) | $ (6.33) |
Commitments and contingencies (
Commitments and contingencies (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)operating_lease | Mar. 31, 2021USD ($) | Dec. 31, 2020 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Minimum volume commitment deficiency payments | $ 2,100,000 | $ 1,600,000 | |
Minimum volume commitments deficiency payments liability | 5,400,000 | ||
Sand Purchase Commitment | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Purchase and supply commitment period | 1 year | ||
Minimum purchase commitment shortfall payment | 3,900,000 | ||
Firm Sale and Transportation Commitments | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Future commitments | $ 199,300,000 | ||
Drilling Rig Contract | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Number of operating leases | operating_lease | 2 | ||
Penalties incurred for early contract termination | $ 0 | $ 0 |
Supplemental cash flow and no_3
Supplemental cash flow and non-cash information - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Supplemental cash flow information: | ||
Cash paid for interest, net of $1,463 and $449 of capitalized interest, respectively | $ 63,057 | $ 48,030 |
Supplemental non-cash investing information: | ||
Change in accrued capital expenditures | 18,433 | (351) |
Capitalized share-settled equity-based compensation | 583 | 670 |
Capitalized asset retirement cost | 181 | 397 |
Right-of-use assets obtained in exchange for operating lease liabilities | 9,949 | 0 |
Capitalized interest | $ 1,463 | $ 449 |
Asset retirement obligations -
Asset retirement obligations - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liability at beginning of period | $ 72,003 | $ 68,326 |
Liabilities added due to acquisitions, drilling, midstream service asset construction and other | 181 | 397 |
Accretion expense | 1,019 | 1,143 |
Liabilities settled due to plugging and abandonment or removed due to sale | (555) | (57) |
Liability at end of period | $ 72,648 | $ 69,809 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating loss carry-forward | ||
Current tax expense | $ 1,218 | $ 0 |
Deferred tax assets, valuation allowance | $ 455,300 | |
Effective tax rate (as a percent) | 1.00% | |
Federal | Internal Revenue Service (IRS) | ||
Operating loss carry-forward | ||
Operating loss carryforwards | $ 2,000,000 | |
Operating loss carryforwards subject to expiration | 1,700,000 | |
Operating loss carryforwards not subject to expiration | 376,200 | |
State | State of Oklahoma | ||
Operating loss carry-forward | ||
Operating loss carryforwards subject to expiration | 34,400 | |
State | Texas | ||
Operating loss carry-forward | ||
Net deferred tax assets | $ 0 |
Related parties - Summary (Deta
Related parties - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Capital expenditures for oil and natural gas properties | $ 143,500 | $ 68,329 |
Halliburton | Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Capital expenditures for oil and natural gas properties | $ 30,141 | $ 11,780 |
Subsequent events - Narrative (
Subsequent events - Narrative (Details) - Secured Debt - Senior Secured Credit Facility - USD ($) $ in Millions | Apr. 25, 2022 | Apr. 06, 2022 | May 03, 2022 | Apr. 13, 2022 | Apr. 12, 2022 | Mar. 31, 2022 |
Subsequent Event [Line Items] | ||||||
Amount of debt outstanding | $ 100 | |||||
Borrowing base | 1,000 | |||||
Aggregate elected commitment | $ 725 | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from lines of credit | $ 30 | |||||
Repayments of lines of credit | $ 80 | |||||
Amount of debt outstanding | $ 50 | |||||
Borrowing base | $ 1,250 | $ 1,000 | ||||
Aggregate elected commitment | 1,000 | 725 | ||||
Bond buyback and distributions baskets | 250 | $ 50 | ||||
Energy transition and technology commercialization investment basket | $ 25 |
Subsequent events - Commodity D
Subsequent events - Commodity Derivatives (Details) - Subsequent to End of Period - Commodity - Natural gas - Forecast - Not Designated as Hedges | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022MMBTU$ / MMBTU | Dec. 31, 2023MMBTU$ / MMBTU | |
Henry Hub NYMEX | Swap | ||
Subsequent Event [Line Items] | ||
Volume (MMBtu) | MMBTU | 2,750,000 | 0 |
Weighted-average price ($/Bbl) | 2.73 | 0 |
Henry Hub NYMEX | Collar | ||
Subsequent Event [Line Items] | ||
Volume (MMBtu) | MMBTU | 22,000,000 | 14,600,000 |
Henry Hub NYMEX | Collar | Minimum | ||
Subsequent Event [Line Items] | ||
Weighted-average price ($/Bbl) | 3.09 | 3.75 |
Henry Hub NYMEX | Collar | Maximum | ||
Subsequent Event [Line Items] | ||
Weighted-average price ($/Bbl) | 3.84 | 7.88 |
Waha Inside FERC to Henry Hub NYMEX | Basis Swap | ||
Subsequent Event [Line Items] | ||
Volume (MMBtu) | MMBTU | 21,862,500 | 14,600,000 |
Weighted-average price ($/Bbl) | (0.36) | (1.52) |