Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 04, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35380 | |
Entity Registrant Name | Vital Energy, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3007926 | |
Entity Address, Address Line One | 521 E. Second Street | |
Entity Address, Address Line Two | Suite 1000 | |
Entity Address, City or Town | Tulsa | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74120 | |
City Area Code | 918 | |
Local Phone Number | 513-4570 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | VTLE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,596,810 | |
Entity Central Index Key | 0001528129 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 27,682 | $ 44,435 |
Accounts receivable, net | 147,071 | 163,369 |
Derivatives | 39,109 | 24,670 |
Other current assets | 15,804 | 13,317 |
Total current assets | 229,666 | 245,791 |
Oil and natural gas properties, full cost method: | ||
Evaluated properties | 9,735,559 | 9,554,706 |
Unevaluated properties not being depleted | 50,142 | 46,430 |
Less: accumulated depletion and impairment | (7,401,480) | (7,318,399) |
Oil and natural gas properties, net | 2,384,221 | 2,282,737 |
Midstream service assets, net | 128,012 | 127,803 |
Total property and equipment, net | 2,512,233 | 2,410,540 |
Derivatives | 26,448 | 24,363 |
Operating lease right-of-use assets | 138,513 | 23,047 |
Other noncurrent assets, net | 36,384 | 22,373 |
Total assets | 2,943,244 | 2,726,114 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 91,688 | 102,516 |
Accrued capital expenditures | 67,221 | 48,378 |
Undistributed revenue and royalties | 148,199 | 160,023 |
Derivatives | 1,686 | 5,960 |
Operating lease liabilities | 48,434 | 15,449 |
Other current liabilities | 34,279 | 82,950 |
Total current liabilities | 391,507 | 415,276 |
Long-term debt, net | 1,163,807 | 1,113,023 |
Asset retirement obligations | 71,308 | 70,366 |
Operating lease liabilities | 87,301 | 9,435 |
Other noncurrent liabilities | 3,953 | 7,268 |
Total liabilities | 1,717,876 | 1,615,368 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized and zero issued as of March 31, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.01 par value, 40,000,000 shares authorized, and 17,024,976 and 16,762,127 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively | 170 | 168 |
Additional paid-in capital | 2,754,765 | 2,754,085 |
Accumulated deficit | (1,529,567) | (1,643,507) |
Total stockholders' equity | 1,225,368 | 1,110,746 |
Total liabilities and stockholders' equity | $ 2,943,244 | $ 2,726,114 |
Common stock authorized (in shares) | 40,000,000 | 40,000,000 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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) | 40,000,000 | 40,000,000 |
Common stock issued (in shares) | 17,024,976 | 16,762,127 |
Common stock outstanding (in shares) | 17,024,976 | 16,762,127 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Total revenues | $ 332,507 | $ 532,395 |
Costs and expenses: | ||
Lease operating expenses | 50,181 | 40,876 |
Production and ad valorem taxes | 20,531 | 27,487 |
General and administrative | 25,930 | 21,944 |
Depletion, depreciation and amortization | 86,779 | 73,492 |
Other operating expenses, net | 1,484 | 138 |
Total costs and expenses | 209,987 | 261,644 |
Gain (loss) on disposal of assets, net | 237 | (260) |
Operating income | 122,757 | 270,491 |
Non-operating income (expense): | ||
Gain (loss) on derivatives, net | 20,490 | (325,816) |
Interest expense | (28,554) | (32,477) |
Other income, net | 854 | 144 |
Total non-operating expense, net | (7,210) | (358,149) |
Income (loss) before income taxes | 115,547 | (87,658) |
Income tax benefit (expense): | ||
Current | (1,331) | (1,218) |
Deferred | (276) | 2,095 |
Total income tax benefit (expense) | (1,607) | 877 |
Net income (loss) | $ 113,940 | $ (86,781) |
Net income (loss) per common share: | ||
Basic (in USD per share) | $ 6.93 | $ (5.18) |
Diluted (in USD per share) | $ 6.89 | $ (5.18) |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 16,431 | 16,767 |
Diluted (in shares) | 16,545 | 16,767 |
Oil sales | ||
Revenues: | ||
Total revenues | $ 266,731 | $ 347,443 |
NGL sales | ||
Revenues: | ||
Total revenues | 33,006 | 65,155 |
Natural gas sales | ||
Revenues: | ||
Total revenues | 18,074 | 38,589 |
Transportation and marketing expenses | ||
Costs and expenses: | ||
Cost of goods and services sold | 10,915 | 14,743 |
Sales of purchased oil | ||
Revenues: | ||
Total revenues | 13,851 | 78,864 |
Costs and expenses: | ||
Cost of goods and services sold | 14,167 | 82,964 |
Other operating revenues | ||
Revenues: | ||
Total revenues | $ 845 | $ 2,344 |
Consolidated statements of stoc
Consolidated statements of stockholders' equity - USD ($) $ 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, 2021 | 17,075,000 | ||||
Balance at beginning of period at Dec. 31, 2021 | $ 513,780 | $ 171 | $ 2,788,628 | $ 0 | $ (2,275,019) |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 0 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Restricted stock awards (in shares) | 232,000 | ||||
Restricted stock awards | 0 | $ 2 | (2) | ||
Restricted stock forfeitures (in shares) | (4,000) | ||||
Stock exchanged for tax withholding (in shares) | 76,000 | ||||
Stock exchanged for tax withholding | (5,847) | $ (5,847) | |||
Retirement of treasury stock (in shares) | (76,000) | (76,000) | |||
Retirement of treasury stock | 0 | $ (1) | (5,846) | $ 5,847 | |
Share-settled equity-based compensation | 2,636 | 2,636 | |||
Performance share conversion (in shares) | 75,000 | ||||
Performance share conversion | 0 | $ 1 | (1) | ||
Net income (loss) | (86,781) | (86,781) | |||
Balance at end of period (in shares) at Mar. 31, 2022 | 17,302,000 | ||||
Balance at end of period at Mar. 31, 2022 | $ 423,788 | $ 173 | 2,785,415 | $ 0 | (2,361,800) |
Balance at end of period (in shares) at Mar. 31, 2022 | 0 | ||||
Balance at beginning of period (in shares) at Dec. 31, 2022 | 16,762,127 | 16,762,000 | |||
Balance at beginning of period at Dec. 31, 2022 | $ 1,110,746 | $ 168 | 2,754,085 | $ 0 | (1,643,507) |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 0 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Restricted stock awards (in shares) | 315,000 | ||||
Restricted stock awards | 0 | $ 3 | (3) | ||
Restricted stock forfeitures (in shares) | (3,000) | ||||
Stock exchanged for tax withholding (in shares) | 49,000 | ||||
Stock exchanged for tax withholding | (2,459) | $ (2,459) | |||
Retirement of treasury stock (in shares) | (49,000) | (49,000) | |||
Retirement of treasury stock | 0 | $ (1) | (2,458) | $ 2,459 | |
Share-settled equity-based compensation | 3,141 | 3,141 | |||
Net income (loss) | $ 113,940 | 113,940 | |||
Balance at end of period (in shares) at Mar. 31, 2023 | 17,024,976 | 17,025,000 | |||
Balance at end of period at Mar. 31, 2023 | $ 1,225,368 | $ 170 | $ 2,754,765 | $ 0 | $ (1,529,567) |
Balance at end of period (in shares) at Mar. 31, 2023 | 0 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 113,940 | $ (86,781) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Share-settled equity-based compensation, net | 2,572 | 2,053 | |
Depletion, depreciation and amortization | 86,779 | 73,492 | |
(Gain) loss on disposal of assets, net | (237) | 260 | |
Mark-to-market on derivatives: | |||
(Gain) loss on derivatives, net | (20,490) | 325,816 | |
Settlements paid for matured derivatives, net | (2,343) | (125,370) | |
Deferred income tax expense (benefit) | 276 | (2,095) | |
Other, net | 2,384 | 6,731 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 13,961 | (61,742) | |
Other current assets | (7,464) | 5,092 | |
Other noncurrent assets, net | 2,345 | (15,227) | |
Accounts payable and accrued liabilities | (10,693) | 1,842 | |
Undistributed revenue and royalties | (11,825) | 44,294 | |
Other current liabilities | (48,650) | (1,471) | |
Other noncurrent liabilities | (4,430) | 3,988 | |
Net cash provided by operating activities | 116,125 | 170,882 | |
Cash flows from investing activities: | |||
Acquisitions of oil and natural gas properties, net | 0 | (7,870) | |
Capital expenditures: | |||
Oil and natural gas properties | (165,042) | (143,500) | |
Other fixed assets | (2,771) | (2,345) | |
Proceeds from dispositions of capital assets, net of selling costs | 2,175 | 2,019 | |
Settlements received for contingent consideration | 2,035 | 0 | |
Net cash used in investing activities | (163,603) | (151,696) | |
Cash flows from financing activities: | |||
Borrowings on Senior Secured Credit Facility | 95,000 | 50,000 | |
Payments on Senior Secured Credit Facility | (45,000) | (55,000) | |
Stock exchanged for tax withholding | (2,459) | (5,847) | |
Other, net | (492) | 0 | |
Net cash provided by (used in) financing activities | 47,049 | (10,847) | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (429) | 8,339 | |
Cash, cash equivalents and restricted cash, beginning of period | 44,435 | 56,798 | |
Cash, cash equivalents and restricted cash, end of period | [1] | $ 44,006 | $ 65,137 |
[1]See Note 1 for further discussion of the Company's cash, cash equivalents and restricted cash. |
Organization and basis of prese
Organization and basis of presentation | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization and basis of presentation | Organization and basis of presentation Organization Vital Energy, Inc. ("Vital" or the "Company"), together with its wholly-owned subsidiaries, is an independent energy company focused on the acquisition, exploration and development of oil and natural gas properties in the Permian Basin of West Texas. The Company has identified one operating segment: exploration and production. In these notes, the "Company" refers to Vital and its subsidiaries 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 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, 2022 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, 2023, results of operations for the three months ended March 31, 2023 and 2022 and cash flows for the three months ended March 31, 2023 and 2022. All adjustments are of a recurring nature unless otherwise disclosed herein. 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 2022 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 income (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, 2023. See Note 2 in the 2022 Annual Report for discussion of significant accounting policies. The following table presents the Company's cash, cash equivalents and restricted cash as of the dates presented: As of March 31, (in thousands) 2023 2022 Cash and cash equivalents $ 27,682 $ 65,137 Restricted cash (1) 16,324 — Total cash, cash equivalents and restricted cash $ 44,006 $ 65,137 ______________________________________________________________________________ (1) Under the terms of the Driftwood PSA (defined below), the Company deposited $16.3 million into a third-party escrow account, which is included in "Other noncurrent assets, net" on the consolidated balance sheets as of March 31, 2023. Use of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although management believes these estimates are reasonable, actual results could differ. See Note 2 in the 2022 Annual Report for further information regarding the use of estimates and assumptions. |
New accounting standards
New accounting standards | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023. Additionally, the Company did not adopt any new ASUs during the three months ended March 31, 2023. |
Acquisitions and divestitures
Acquisitions and divestitures | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and divestitures | Acquisitions and divestitures 2023 Acquisition On February 14, 2023, the Company entered into a purchase and sale agreement (the "Driftwood PSA") with Driftwood Energy Operating, LLC (the "Seller"), pursuant to which the Company agreed to purchase (the "Driftwood Acquisition") Seller's oil and gas properties in the Midland Basin, including approximately 11,200 net acres located in Upton and Reagan Counties and related assets and contracts, inclusive of derivatives, for a purchase price of (i) $127.6 million of cash, subject to customary closing price adjustments, and (ii) 1,578,948 shares of the Company's common stock. Under the terms of the Driftwood PSA, the Company deposited $16.3 million into a third-party escrow account, which is included in "Other noncurrent assets, net" on the consolidated balance sheets as of March 31, 2023. The Company funded the cash portion of the purchase price and related transaction costs with respect to the Driftwood Acquisition from cash on hand and borrowings under its Senior Secured Credit Facility. The Company expects to finalize its allocation of the purchase consideration as soon as practicable after completion of the Driftwood Acquisition. For income tax purposes, the Driftwood Acquisition will be treated as an asset purchase such that the tax basis in the assets and liabilities will generally reflect the allocated fair value at closing. Therefore, the Company does not anticipate a material tax consequence for deferred income taxes related to the Driftwood Acquisition. See Note 13 for discussion of the April 3, 2023 closing of the Driftwood Acquisition. 2022 Divestiture On August 16, 2022, the Company entered into a purchase and sale agreement with Northern Oil and Gas, Inc. ("NOG"), pursuant to which the Company agreed to sell to NOG the Company's working interests in certain specified non-operated oil and gas properties (the "NOG Working Interest Sale"). On October 3, 2022, the Company closed the NOG Working Interest Sale for an aggregate sales price of $106.1 million, inclusive of post-closing adjustments. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
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 consolidated balance sheets as of the dates presented: March 31, 2023 December 31, 2022 (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 $ 455,628 $ (2,854) $ 452,774 $ 455,628 $ (3,297) $ 452,331 January 2028 Notes 300,309 (3,302) 297,007 300,309 (3,478) 296,831 July 2029 Notes 298,214 (4,188) 294,026 298,214 (4,353) 293,861 Senior Secured Credit Facility (1) 120,000 — 120,000 70,000 — 70,000 Total $ 1,174,151 $ (10,344) $ 1,163,807 $ 1,124,151 $ (11,128) $ 1,113,023 ______________________________________________________________________________ (1) Debt issuance costs, net related to the Senior Secured Credit Facility of $6.6 million and $7.3 million as of March 31, 2023 and December 31, 2022, respectively, are included in "Other noncurrent assets, net" on the consolidated balance sheets. Senior Secured Credit Facility As of March 31, 2023, 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 $1.3 billion and $1.0 billion, respectively, with a $120.0 million balance outstanding, and was subject to an interest rate of 7.385%. 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, 2023 and December 31, 2022, the Company had no letters of credit outstanding under the Senior Secured Credit Facility. For additional information see Note 7 in the 2022 Annual Report. See Note 13 for discussion of (i) additional borrowings and repayments on and (ii) the reaffirmation of the borrowing base and aggregate commitment of the Senior Secured Credit Facility subsequent to March 31, 2023. |
Equity Incentive Plan
Equity Incentive Plan | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity Incentive Plan | Equity Incentive Plan The Vital Energy, 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. The Equity Incentive Plan allows for the issuance of up to 2,432,500 shares. See Note 9 in the 2022 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, 2023: Equity Awards Liability Awards (in thousands) Restricted Stock Awards Stock Option Awards Performance Share Awards Performance Unit Awards (1)(2) Phantom Unit Awards (3) Outstanding as of December 31, 2022 362 3 48 150 18 Granted 315 — — 75 — Forfeited (3) — — — — Vested (133) — — (67) (16) Expired or canceled — (1) — — — Outstanding as of March 31, 2023 541 2 48 158 2 _____________________________________________________________________________ (1) The performance unit awards granted on March 5, 2020 had a performance period of January 1, 2020 to December 31, 2022 and, as their market and performance criteria were satisfied, resulted in a 151% payout, or 101,368 units. As such, the granted awards vested and were paid out in cash on March 3, 2023 at $57.06 based on the Company's closing stock price on the vesting date. (2) On February 15, 2023, the Company granted performance unit awards with a performance period of January 1, 2023 through December 31, 2025. 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 Russel 2000 Index and (ii) annual absolute 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 reductions. Any units earned are expected to be paid in cash 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, 2023 and March 3, 2023, granted phantom unit awards vested and were paid out in cash at $52.56 and $57.06, respectively, based on the Company's closing stock price on the vesting date. As of March 31, 2023, total unrecognized cost related to equity-based compensation awards was $34.4 million, of which $5.3 million was attributable to liability awards which will be settled in cash rather than shares. Such cost will be Equity-based compensation The following table reflects equity-based compensation expense for the periods presented: Three months ended March 31, (in thousands) 2023 2022 Equity awards: Restricted stock awards $ 2,717 $ 2,175 Performance share awards 424 461 Total share-settled equity-based compensation, gross 3,141 2,636 Less amounts capitalized (569) (583) Total share-settled equity-based compensation, net 2,572 2,053 Liability awards: Performance unit awards 497 5,566 Phantom unit awards 217 609 Total cash-settled equity-based compensation, gross 714 6,175 Less amounts capitalized (50) (47) Total cash-settled equity-based compensation, net 664 6,128 Total equity-based compensation, net $ 3,236 $ 8,181 |
Net income (loss) per common sh
Net income (loss) per common share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net income (loss) per common share | Net income (loss) per common share Basic and diluted net income (loss) per common share are computed by dividing net income (loss) by the weighted-average common shares outstanding for the period. Diluted net income (loss) per common share reflects the potential dilution of non-vested equity-based compensation awards. See Note 9 in the 2022 Annual Report for additional discussion of these awards. For the three months ended March 31, 2022, 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 income (loss) per common share for the periods presented: Three months ended March 31, (in thousands, except for per share data) 2023 2022 Net income (loss) $ 113,940 $ (86,781) Weighted-average common shares outstanding: Basic 16,431 16,767 Dilutive non-vested restricted stock awards 114 — Diluted 16,545 16,767 Net income (loss) per common share: Basic $ 6.93 $ (5.18) Diluted $ 6.89 $ (5.18) |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company has two types of derivative instruments as of March 31, 2023: (i) commodity derivatives and (ii) a contingent consideration derivative. In previous periods, the Company also engaged in an interest rate swap derivative, which concluded during the second quarter of 2022. See Note 8 for discussion of fair value measurement of derivatives on a recurring basis and Note 13 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 derivative fair values are recognized in "Gain (loss) on derivatives, net" under "Non-operating expense" on the consolidated statements of operations. The following table summarizes components of the Company's gain (loss) on derivatives, net by type of derivative instrument for the periods presented: Three months ended March 31, (in thousands) 2023 2022 Commodity $ 17,582 $ (329,724) Contingent consideration 2,908 3,895 Interest rate — 13 Gain (loss) on derivatives, net $ 20,490 $ (325,816) 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 11 in the 2022 Annual Report for discussion of transaction types and settlement indexes. During the three months ended March 31, 2023, the Company’s derivatives were settled based on reported prices on commodity exchanges, with oil derivatives settled based on WTI NYMEX and 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, 2023, for commodity derivatives that were entered into through March 31, 2023, for the settlement periods presented: Remaining Year 2023 Year 2024 Oil: WTI NYMEX - Collars: Volume (Bbl) 3,658,000 — Weighted-average floor price ($/Bbl) $ 69.00 $ — Weighted-average ceiling price ($/Bbl) $ 85.47 $ — Natural gas: Henry Hub NYMEX - Collars: Volume (MMBtu) 19,250,000 — Weighted-average floor price ($/MMBtu) $ 4.14 $ — Weighted-average ceiling price ($/MMBtu) $ 8.43 $ — Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: Volume (MMBtu) 30,250,000 3,660,000 Weighted-average differential ($/MMBtu) $ (1.53) $ (0.75) Contingent consideration |
Fair value measurements
Fair value measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements See the beginning of Note 12 in the 2022 Annual Report for information about the fair value hierarchy levels. Fair value measurement on a recurring basis See Note 7 for further discussion of the Company's 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 consolidated balance sheets as of the dates presented: March 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the consolidated balance sheets Assets: Current: Commodity $ — $ 41,453 $ — $ 41,453 $ (4,353) $ 37,100 Contingent consideration — — 2,009 2,009 — 2,009 Noncurrent: Commodity — 364 — 364 — 364 Contingent consideration — — 26,084 26,084 — 26,084 Liabilities: Current: Commodity — (6,039) — (6,039) 4,353 (1,686) Net derivative asset positions $ — $ 35,778 $ 28,093 $ 63,871 $ — $ 63,871 December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the consolidated balance sheets Assets: Current: Commodity $ — $ 35,586 $ — $ 35,586 $ (13,193) $ 22,393 Contingent consideration — — 2,277 2,277 — 2,277 Noncurrent: Contingent consideration — — 24,363 24,363 — 24,363 Liabilities: Current: Commodity — (19,153) — (19,153) 13,193 (5,960) Net derivative asset positions $ — $ 16,433 $ 26,640 $ 43,073 $ — $ 43,073 See Note 12 in the 2022 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 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 divestiture 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, the Company remeasures contingent consideration with the change in fair values recognized in "Gain (loss) on derivatives, net" under "Non-operating expense" on the consolidated statement of operations. 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) 2023 2022 Balance of Level 3 at beginning of period $ 26,640 $ 35,861 Change in Sixth Street Contingent Consideration fair value 2,908 3,895 Settlements realized (1) (1,455) — Balance of Level 3 at end of period $ 28,093 $ 39,756 _____________________________________________________________________________ (1) For the three months ended March 31, 2023, the settlements are included in "Settlements received for contingent consideration" in cash flows from investing activities on the consolidated statements of cash flows. Items not accounted for at fair value The carrying amounts reported on the 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, 2023 December 31, 2022 (in thousands) Carrying Fair value (1) Carrying Fair value (1) January 2025 Notes $ 455,628 $ 458,827 $ 455,628 $ 449,122 January 2028 Notes 300,309 288,375 300,309 292,846 July 2029 Notes 298,214 248,758 298,214 268,416 Senior Secured Credit Facility 120,000 119,889 70,000 69,945 Total $ 1,174,151 $ 1,115,849 $ 1,124,151 $ 1,080,329 ______________________________________________________________________________ (1) The fair values of the outstanding notes were determined using the Level 2 fair value hierarchy quoted market prices for each respective instrument as of March 31, 2023 and December 31, 2022. The fair values of the outstanding debt under the Senior Secured Credit Facility was estimated utilizing the Level 2 fair value hierarchy pricing model for similar instruments as of March 31, 2023 and December 31, 2022. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2023 | |
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. 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 $2.5 million and $2.1 million during the three months ended March 31, 2023 and 2022, respectively, which are recorded in "Transportation and marketing expenses" on the consolidated statements of operations. The Company had an estimated aggregate liability of firm transportation payments on excess capacity of $11.9 million and$11.5 million as of March 31, 2023 and December 31, 2022, respectively, and is included in "Accounts payable and accrued liabilities" on the consolidated balance sheets. As of March 31, 2023, future firm sale and transportation commitments of $151.8 million are expected to be satisfied and, as such, are not recorded as a liability on the consolidated balance sheet. |
Supplemental cash flow and non-
Supplemental cash flow and non-cash information | 3 Months Ended |
Mar. 31, 2023 | |
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) 2023 2022 Supplemental cash flow information: Cash paid for interest, net of $535 and $1,463 of capitalized interest, respectively $ 51,147 $ 63,057 Supplemental non-cash operating information: Right-of-use assets obtained in exchange for operating lease liabilities (1) $ 124,128 $ 9,949 Supplemental non-cash investing information: Change in accrued capital expenditures $ 18,843 $ 18,433 _____________________________________________________________________________ (1) See Notes 5 and 18 in the 2022 Annual Report for additional discussion of the Company's leases. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes For the three months ended March 31, 2023, the Company's effective tax rate was 1.37%, which differs from the statutory rate primarily as a result of maintaining a full valuation allowance for federal and state tax purposes, with the exception of Texas franchise tax. For the period ended March 31, 2022, our effective tax rate was 1.00% as a result of the pre-tax loss and the impact of the Company's full valuation allowance for federal and state tax purposes, with the exception of Texas franchise tax. The Company has significant federal and state net operating loss carryforwards. 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 may be limited in future years. Based on the information available as of March 31, 2023, no ownership change has occurred. As of March 31, 2023, the Company believes it is more likely than not that a portion of its deferred tax assets are not 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. A significant item of objective negative evidence considered was the cumulative historical three-year pre-tax loss and net deferred tax asset position. Such objective evidence limits the ability to consider other subjective evidence such as the Company’s potential for future growth. The Company currently believes it is reasonably possible it could achieve a three-year cumulative level of profitability within the next 12 months, which would enhance the Company's ability to conclude that it is more likely than not that the deferred tax assets would be realized and support a release of the valuation allowance. |
Related parties
Related parties | 3 Months Ended |
Mar. 31, 2023 | |
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. During the three months ended March 31, 2023, the Company entered into a lease agreement with Halliburton to provide an electric fracture stimulation crew and the related services, with the agreement extending through 2025. Under the agreement, the Company has a lease liability of $79.7 million as of March 31, 2023 which is included in both current and noncurrent "Operating lease liabilities" on the consolidated balance sheets. Services provided under the lease agreement do not differ substantially from historical services provided by Halliburton, which were previously not subject to a long-term agreement. Payments to Halliburton are included in capital expenditures for oil and natural gas properties in cash flows from investing activities on the consolidated statements of cash flows. The following table presents the capital expenditures for oil and natural gas properties paid to Halliburton included in the consolidated statements of cash flows for the periods presented: Three months ended March 31, (in thousands) 2023 2022 Capital expenditures for oil and natural gas properties $ 32,249 $ 30,141 |
Subsequent events
Subsequent events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events 2023 Acquisition On April 3, 2023, the Company closed the Driftwood Acquisition, and issued the 1,578,948 shares of its common stock constituting a portion of the purchase price. See Note 3 for additional discussion of the Driftwood Acquisition. Senior Secured Credit Facility On April 3, 2023 and April 13, 2023, the Company borrowed an additional $120.0 million and $30.0 million, respectively, and on April 24, 2023, the Company repaid $15.0 million on the Senior Secured Credit Facility. As a result, the outstanding balance under the Senior Secured Credit Facility was $255.0 million as of May 5, 2023. On April 28, 2023, pursuant to the regular semi-annual redetermination, our lenders reaffirmed the borrowing base and aggregate elected commitment under our Senior Secured Credit Facility at $1.3 billion and $1.0 billion, respectively. See Note 4 for additional discussion of the Senior Secured Credit Facility. Commodity derivatives The following table summarizes the Company's open oil and natural gas derivative positions as of March 31, 2023, updated for the derivative transactions entered into from March 31, 2023 through May 5, 2023, which includes derivatives acquired in the Driftwood Acquisition, for the settlement periods presented: Remaining Year 2023 Year 2024 Oil: WTI NYMEX - Swaps: Volume (Bbl) 1,287,000 75,950 Weighted-average price ($/Bbl) $ 74.27 $ 63.75 WTI NYMEX - Collars: Volume (Bbl) 3,885,450 — Weighted-average floor price ($/Bbl) $ 68.75 $ — Weighted-average ceiling price ($/Bbl) $ 85.45 $ — WTI NYMEX - Three-way Collars: Volume (Bbl) 301,250 217,350 Weighted-average sold put price ($/Bbl) $ 45.58 $ 50.00 Weighted-average floor price ($/Bbl) $ 57.71 $ 66.51 Weighted-average ceiling price ($/Bbl) $ 74.45 $ 87.09 Argus WTI Midland to Argus WTI Formula Basis - Basis Swaps: Volume (Bbl) 458,100 293,300 Weighted-average differential ($/Bbl) $ 0.18 $ 0.11 Natural gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 120,500 455,700 Weighted-average price ($/MMBtu) $ 2.46 $ 3.29 Henry Hub NYMEX - Collars: Volume (MMBtu) 20,377,996 776,292 Weighted-average floor price ($/MMBtu) $ 4.11 $ 3.40 Weighted-average ceiling price ($/MMBtu) $ 8.32 $ 6.11 Henry Hub NYMEX - Three-way Collars: Volume (MMBtu) 140,500 — Weighted-average sold put price ($/MMBtu) $ 2.00 $ — Weighted-average floor price ($/MMBtu) $ 2.50 $ — Weighted-average ceiling price ($/MMBtu) $ 3.01 $ — Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: Volume (MMBtu) 31,638,996 4,891,992 Weighted-average differential ($/MMBtu) $ (1.53) $ (0.82) See Note 7 for additional discussion regarding the Company's derivatives. There has been no other derivative activity subsequent to March 31, 2023. |
Organization and basis of pre_2
Organization and basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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 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, 2022 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, 2023, results of operations for the three months ended March 31, 2023 and 2022 and cash flows for the three months ended March 31, 2023 and 2022. All adjustments are of a recurring nature unless otherwise disclosed herein. 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 2022 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 income (loss) or stockholders' equity for the periods presented. |
Use of estimates in the preparation of interim unaudited consolidated financial statements | The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although management believes these estimates are reasonable, actual results could differ. See Note 2 in the 2022 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, 2023. Additionally, the Company did not adopt any new ASUs during the three months ended March 31, 2023. |
Net income (loss) per common share | Net income (loss) per common shareBasic and diluted net income (loss) per common share are computed by dividing net income (loss) by the weighted-average common shares outstanding for the period. Diluted net income (loss) per common share reflects the potential dilution of non-vested equity-based compensation awards. |
Organization and basis of pre_3
Organization and basis of presentation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table presents the Company's cash, cash equivalents and restricted cash as of the dates presented: As of March 31, (in thousands) 2023 2022 Cash and cash equivalents $ 27,682 $ 65,137 Restricted cash (1) 16,324 — Total cash, cash equivalents and restricted cash $ 44,006 $ 65,137 ______________________________________________________________________________ (1) Under the terms of the Driftwood PSA (defined below), the Company deposited $16.3 million into a third-party escrow account, which is included in "Other noncurrent assets, net" on the consolidated balance sheets as of March 31, 2023. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 consolidated balance sheets as of the dates presented: March 31, 2023 December 31, 2022 (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 $ 455,628 $ (2,854) $ 452,774 $ 455,628 $ (3,297) $ 452,331 January 2028 Notes 300,309 (3,302) 297,007 300,309 (3,478) 296,831 July 2029 Notes 298,214 (4,188) 294,026 298,214 (4,353) 293,861 Senior Secured Credit Facility (1) 120,000 — 120,000 70,000 — 70,000 Total $ 1,174,151 $ (10,344) $ 1,163,807 $ 1,124,151 $ (11,128) $ 1,113,023 ______________________________________________________________________________ (1) Debt issuance costs, net related to the Senior Secured Credit Facility of $6.6 million and $7.3 million as of March 31, 2023 and December 31, 2022, respectively, are included in "Other noncurrent assets, net" on the consolidated balance sheets. |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Share-based Payment Arrangement, Activity | The following table presents activity for equity-based compensation awards for the three months ended March 31, 2023: Equity Awards Liability Awards (in thousands) Restricted Stock Awards Stock Option Awards Performance Share Awards Performance Unit Awards (1)(2) Phantom Unit Awards (3) Outstanding as of December 31, 2022 362 3 48 150 18 Granted 315 — — 75 — Forfeited (3) — — — — Vested (133) — — (67) (16) Expired or canceled — (1) — — — Outstanding as of March 31, 2023 541 2 48 158 2 _____________________________________________________________________________ (1) The performance unit awards granted on March 5, 2020 had a performance period of January 1, 2020 to December 31, 2022 and, as their market and performance criteria were satisfied, resulted in a 151% payout, or 101,368 units. As such, the granted awards vested and were paid out in cash on March 3, 2023 at $57.06 based on the Company's closing stock price on the vesting date. (2) On February 15, 2023, the Company granted performance unit awards with a performance period of January 1, 2023 through December 31, 2025. 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 Russel 2000 Index and (ii) annual absolute 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 reductions. Any units earned are expected to be paid in cash 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) 2023 2022 Equity awards: Restricted stock awards $ 2,717 $ 2,175 Performance share awards 424 461 Total share-settled equity-based compensation, gross 3,141 2,636 Less amounts capitalized (569) (583) Total share-settled equity-based compensation, net 2,572 2,053 Liability awards: Performance unit awards 497 5,566 Phantom unit awards 217 609 Total cash-settled equity-based compensation, gross 714 6,175 Less amounts capitalized (50) (47) Total cash-settled equity-based compensation, net 664 6,128 Total equity-based compensation, net $ 3,236 $ 8,181 |
Net income (loss) per common _2
Net income (loss) per common share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted weighted-average common shares outstanding and net income (loss) per common share | The following table reflects the calculations of basic and diluted (i) weighted-average common shares outstanding and (ii) net income (loss) per common share for the periods presented: Three months ended March 31, (in thousands, except for per share data) 2023 2022 Net income (loss) $ 113,940 $ (86,781) Weighted-average common shares outstanding: Basic 16,431 16,767 Dilutive non-vested restricted stock awards 114 — Diluted 16,545 16,767 Net income (loss) per common share: Basic $ 6.93 $ (5.18) Diluted $ 6.89 $ (5.18) |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of gain (loss) on derivatives | The following table summarizes components of the Company's gain (loss) on derivatives, net by type of derivative instrument for the periods presented: Three months ended March 31, (in thousands) 2023 2022 Commodity $ 17,582 $ (329,724) Contingent consideration 2,908 3,895 Interest rate — 13 Gain (loss) on derivatives, net $ 20,490 $ (325,816) |
Schedule of open positions and derivatives in place | The following table summarizes open commodity derivative positions as of March 31, 2023, for commodity derivatives that were entered into through March 31, 2023, for the settlement periods presented: Remaining Year 2023 Year 2024 Oil: WTI NYMEX - Collars: Volume (Bbl) 3,658,000 — Weighted-average floor price ($/Bbl) $ 69.00 $ — Weighted-average ceiling price ($/Bbl) $ 85.47 $ — Natural gas: Henry Hub NYMEX - Collars: Volume (MMBtu) 19,250,000 — Weighted-average floor price ($/MMBtu) $ 4.14 $ — Weighted-average ceiling price ($/MMBtu) $ 8.43 $ — Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: Volume (MMBtu) 30,250,000 3,660,000 Weighted-average differential ($/MMBtu) $ (1.53) $ (0.75) The following table summarizes the Company's open oil and natural gas derivative positions as of March 31, 2023, updated for the derivative transactions entered into from March 31, 2023 through May 5, 2023, which includes derivatives acquired in the Driftwood Acquisition, for the settlement periods presented: Remaining Year 2023 Year 2024 Oil: WTI NYMEX - Swaps: Volume (Bbl) 1,287,000 75,950 Weighted-average price ($/Bbl) $ 74.27 $ 63.75 WTI NYMEX - Collars: Volume (Bbl) 3,885,450 — Weighted-average floor price ($/Bbl) $ 68.75 $ — Weighted-average ceiling price ($/Bbl) $ 85.45 $ — WTI NYMEX - Three-way Collars: Volume (Bbl) 301,250 217,350 Weighted-average sold put price ($/Bbl) $ 45.58 $ 50.00 Weighted-average floor price ($/Bbl) $ 57.71 $ 66.51 Weighted-average ceiling price ($/Bbl) $ 74.45 $ 87.09 Argus WTI Midland to Argus WTI Formula Basis - Basis Swaps: Volume (Bbl) 458,100 293,300 Weighted-average differential ($/Bbl) $ 0.18 $ 0.11 Natural gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 120,500 455,700 Weighted-average price ($/MMBtu) $ 2.46 $ 3.29 Henry Hub NYMEX - Collars: Volume (MMBtu) 20,377,996 776,292 Weighted-average floor price ($/MMBtu) $ 4.11 $ 3.40 Weighted-average ceiling price ($/MMBtu) $ 8.32 $ 6.11 Henry Hub NYMEX - Three-way Collars: Volume (MMBtu) 140,500 — Weighted-average sold put price ($/MMBtu) $ 2.00 $ — Weighted-average floor price ($/MMBtu) $ 2.50 $ — Weighted-average ceiling price ($/MMBtu) $ 3.01 $ — Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: Volume (MMBtu) 31,638,996 4,891,992 Weighted-average differential ($/MMBtu) $ (1.53) $ (0.82) |
Fair value measurements (Tables
Fair value measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 consolidated balance sheets as of the dates presented: March 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the consolidated balance sheets Assets: Current: Commodity $ — $ 41,453 $ — $ 41,453 $ (4,353) $ 37,100 Contingent consideration — — 2,009 2,009 — 2,009 Noncurrent: Commodity — 364 — 364 — 364 Contingent consideration — — 26,084 26,084 — 26,084 Liabilities: Current: Commodity — (6,039) — (6,039) 4,353 (1,686) Net derivative asset positions $ — $ 35,778 $ 28,093 $ 63,871 $ — $ 63,871 December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the consolidated balance sheets Assets: Current: Commodity $ — $ 35,586 $ — $ 35,586 $ (13,193) $ 22,393 Contingent consideration — — 2,277 2,277 — 2,277 Noncurrent: Contingent consideration — — 24,363 24,363 — 24,363 Liabilities: Current: Commodity — (19,153) — (19,153) 13,193 (5,960) Net derivative asset positions $ — $ 16,433 $ 26,640 $ 43,073 $ — $ 43,073 |
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) 2023 2022 Balance of Level 3 at beginning of period $ 26,640 $ 35,861 Change in Sixth Street Contingent Consideration fair value 2,908 3,895 Settlements realized (1) (1,455) — Balance of Level 3 at end of period $ 28,093 $ 39,756 _____________________________________________________________________________ (1) For the three months ended March 31, 2023, the settlements are included in "Settlements received for contingent consideration" in cash flows from investing activities on the consolidated statements of cash flows. |
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, 2023 December 31, 2022 (in thousands) Carrying Fair value (1) Carrying Fair value (1) January 2025 Notes $ 455,628 $ 458,827 $ 455,628 $ 449,122 January 2028 Notes 300,309 288,375 300,309 292,846 July 2029 Notes 298,214 248,758 298,214 268,416 Senior Secured Credit Facility 120,000 119,889 70,000 69,945 Total $ 1,174,151 $ 1,115,849 $ 1,124,151 $ 1,080,329 ______________________________________________________________________________ (1) The fair values of the outstanding notes were determined using the Level 2 fair value hierarchy quoted market prices for each respective instrument as of March 31, 2023 and December 31, 2022. The fair values of the outstanding debt under the Senior Secured Credit Facility was estimated utilizing the Level 2 fair value hierarchy pricing model for similar instruments as of March 31, 2023 and December 31, 2022. |
Supplemental cash flow and no_2
Supplemental cash flow and non-cash information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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) 2023 2022 Supplemental cash flow information: Cash paid for interest, net of $535 and $1,463 of capitalized interest, respectively $ 51,147 $ 63,057 Supplemental non-cash operating information: Right-of-use assets obtained in exchange for operating lease liabilities (1) $ 124,128 $ 9,949 Supplemental non-cash investing information: Change in accrued capital expenditures $ 18,843 $ 18,433 _____________________________________________________________________________ (1) See Notes 5 and 18 in the 2022 Annual Report for additional discussion of the Company's leases. |
Related parties (Tables)
Related parties (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 consolidated statements of cash flows for the periods presented: Three months ended March 31, (in thousands) 2023 2022 Capital expenditures for oil and natural gas properties $ 32,249 $ 30,141 |
Subsequent events (Tables)
Subsequent events (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Schedule of open positions and derivatives in place | The following table summarizes open commodity derivative positions as of March 31, 2023, for commodity derivatives that were entered into through March 31, 2023, for the settlement periods presented: Remaining Year 2023 Year 2024 Oil: WTI NYMEX - Collars: Volume (Bbl) 3,658,000 — Weighted-average floor price ($/Bbl) $ 69.00 $ — Weighted-average ceiling price ($/Bbl) $ 85.47 $ — Natural gas: Henry Hub NYMEX - Collars: Volume (MMBtu) 19,250,000 — Weighted-average floor price ($/MMBtu) $ 4.14 $ — Weighted-average ceiling price ($/MMBtu) $ 8.43 $ — Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: Volume (MMBtu) 30,250,000 3,660,000 Weighted-average differential ($/MMBtu) $ (1.53) $ (0.75) The following table summarizes the Company's open oil and natural gas derivative positions as of March 31, 2023, updated for the derivative transactions entered into from March 31, 2023 through May 5, 2023, which includes derivatives acquired in the Driftwood Acquisition, for the settlement periods presented: Remaining Year 2023 Year 2024 Oil: WTI NYMEX - Swaps: Volume (Bbl) 1,287,000 75,950 Weighted-average price ($/Bbl) $ 74.27 $ 63.75 WTI NYMEX - Collars: Volume (Bbl) 3,885,450 — Weighted-average floor price ($/Bbl) $ 68.75 $ — Weighted-average ceiling price ($/Bbl) $ 85.45 $ — WTI NYMEX - Three-way Collars: Volume (Bbl) 301,250 217,350 Weighted-average sold put price ($/Bbl) $ 45.58 $ 50.00 Weighted-average floor price ($/Bbl) $ 57.71 $ 66.51 Weighted-average ceiling price ($/Bbl) $ 74.45 $ 87.09 Argus WTI Midland to Argus WTI Formula Basis - Basis Swaps: Volume (Bbl) 458,100 293,300 Weighted-average differential ($/Bbl) $ 0.18 $ 0.11 Natural gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 120,500 455,700 Weighted-average price ($/MMBtu) $ 2.46 $ 3.29 Henry Hub NYMEX - Collars: Volume (MMBtu) 20,377,996 776,292 Weighted-average floor price ($/MMBtu) $ 4.11 $ 3.40 Weighted-average ceiling price ($/MMBtu) $ 8.32 $ 6.11 Henry Hub NYMEX - Three-way Collars: Volume (MMBtu) 140,500 — Weighted-average sold put price ($/MMBtu) $ 2.00 $ — Weighted-average floor price ($/MMBtu) $ 2.50 $ — Weighted-average ceiling price ($/MMBtu) $ 3.01 $ — Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: Volume (MMBtu) 31,638,996 4,891,992 Weighted-average differential ($/MMBtu) $ (1.53) $ (0.82) |
Organization and basis of pre_4
Organization and basis of presentation (Details) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2023 USD ($) operating_segment | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |||
Accounting Policies [Abstract] | ||||||
Number of operating segments | operating_segment | 1 | |||||
Cash and cash equivalents | $ 27,682 | $ 44,435 | $ 65,137 | |||
Restricted cash | 16,324 | 0 | ||||
Cash and cash equivalents | $ 44,006 | [1] | $ 44,435 | $ 65,137 | [1] | $ 56,798 |
[1]See Note 1 for further discussion of the Company's cash, cash equivalents and restricted cash. |
Acquisitions and divestitures -
Acquisitions and divestitures - Narrative (Details) $ in Millions | Feb. 14, 2023 USD ($) a shares | Mar. 31, 2023 USD ($) | Oct. 03, 2022 USD ($) |
Oil and Gas Properties | |||
Asset Acquisition [Line Items] | |||
Proceeds from dispositions after transaction costs | $ 106.1 | ||
Midland Basin | |||
Asset Acquisition [Line Items] | |||
Area of land (in acres) | a | 11,200 | ||
Cash consideration | $ 127.6 | ||
Stock issued in asset acquisition (in shares) | shares | 1,578,948 | ||
Escrow deposit | $ 16.3 |
Debt - Long-term Debt, Net (Det
Debt - Long-term Debt, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,174,151 | $ 1,124,151 |
Debt issuance costs, net | (10,344) | (11,128) |
Long-term debt, net | 1,163,807 | 1,113,023 |
Secured Debt | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 120,000 | 70,000 |
Debt issuance costs, net | 0 | 0 |
Long-term debt, net | 120,000 | 70,000 |
Secured Debt | Senior Secured Credit Facility | Other Noncurrent Assets | ||
Debt Instrument [Line Items] | ||
Debt issuance costs related to line of credit arrangements | 6,600 | 7,300 |
January 2025 Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 455,628 | 455,628 |
Debt issuance costs, net | (2,854) | (3,297) |
Long-term debt, net | 452,774 | 452,331 |
January 2028 Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 300,309 | 300,309 |
Debt issuance costs, net | (3,302) | (3,478) |
Long-term debt, net | 297,007 | 296,831 |
July 2029 Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 298,214 | 298,214 |
Debt issuance costs, net | (4,188) | (4,353) |
Long-term debt, net | $ 294,026 | $ 293,861 |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facility (Details) - Secured Debt - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum credit amount | $ 2,000,000,000 | |
Borrowing base | 1,300,000,000 | |
Aggregate elected commitment | 1,000,000,000 | |
Amount of debt outstanding | $ 120,000,000 | |
Credit facility, interest rate at period end (as a percent) | 7.385% | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum credit amount | $ 80,000,000 | |
Letters of credit outstanding | $ 0 | $ 0 |
Equity Incentive Plan - Equity
Equity Incentive Plan - Equity Incentive Plan (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation not yet recognized | $ 34.4 |
Stock-based compensation, amount expected to be settled in cash | $ 5.3 |
Recognition period for costs not yet recognized | 2 years 4 months 6 days |
Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock authorized for issuance (in shares) | shares | 2,432,500 |
Equity Incentive Plan - Activit
Equity Incentive Plan - Activity for Restricted Stock Awards, Performance Units and Shares and Stock Options (Details) - $ / shares | 3 Months Ended | 36 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 03, 2023 | Mar. 01, 2023 | |
March 6, 2020 | ||||
Stock option awards | ||||
Overall payout (as a percent) | 151% | |||
February 15, 2023 | Minimum | ||||
Stock option awards | ||||
Overall payout (as a percent) | 0% | |||
February 15, 2023 | Maximum | ||||
Stock option awards | ||||
Overall payout (as a percent) | 225% | |||
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) | 362,000 | |||
Granted (in shares) | 315,000 | |||
Forfeited (in shares) | (3,000) | |||
Vested (in shares) | (133,000) | |||
Outstanding at end of period (in shares) | 541,000 | 362,000 | ||
Stock Option Awards | ||||
Stock option awards | ||||
Outstanding at beginning of period (in shares) | 3,000 | |||
Expired or canceled (in shares) | (1,000) | |||
Outstanding at end of period (in shares) | 2,000 | 3,000 | ||
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) | 48,000 | |||
Granted (in shares) | 0 | |||
Forfeited (in shares) | 0 | |||
Vested (in shares) | 0 | |||
Outstanding at end of period (in shares) | 48,000 | 48,000 | ||
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) | 150,000 | |||
Granted (in shares) | 75,000 | |||
Forfeited (in shares) | 0 | |||
Vested (in shares) | (67,000) | |||
Outstanding at end of period (in shares) | 158,000 | 150,000 | ||
Stock option awards | ||||
Performance share conversion (in shares) | 101,368 | |||
Settlement/payment, per share | $ 57.06 | |||
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) | 18,000 | |||
Vested (in shares) | (16,000) | |||
Outstanding at end of period (in shares) | 2,000 | 18,000 | ||
Stock option awards | ||||
Settlement/payment, per share | $ 57.06 | $ 52.56 |
Equity Incentive Plan - Equity-
Equity Incentive Plan - Equity-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, net | $ 3,236 | $ 8,181 |
Share-settled | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | 3,141 | 2,636 |
Less amounts capitalized | (569) | (583) |
Total equity-based compensation, net | 2,572 | 2,053 |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | 2,717 | 2,175 |
Performance share awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | 424 | 461 |
Cash-settled | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | 714 | 6,175 |
Less amounts capitalized | (50) | (47) |
Total equity-based compensation, net | 664 | 6,128 |
Performance unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | 497 | 5,566 |
Phantom unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity-based compensation, gross | $ 217 | $ 609 |
Net income (loss) per common _3
Net income (loss) per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income (loss) | $ 113,940 | $ (86,781) |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 16,431 | 16,767 |
Diluted (in shares) | 16,545 | 16,767 |
Net income (loss) per common share: | ||
Basic (in USD per share) | $ 6.93 | $ (5.18) |
Diluted (in USD per share) | $ 6.89 | $ (5.18) |
Restricted stock awards | ||
Weighted-average common shares outstanding: | ||
Dilutive non-vested restricted stock awards (in shares) | 114 | 0 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) derivative | Dec. 31, 2022 USD ($) | May 07, 2021 USD ($) |
Derivative [Line Items] | |||
Number of types of derivative instruments | derivative | 2 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Sixth Street PSA | |||
Derivative [Line Items] | |||
Average working interest (as a percent) | 37.50% | ||
Balloon payment of additional cash contingent consideration | $ 55 | ||
Notional amount of derivative | $ 87.8 | ||
Fair value of contingent consideration | $ 28.1 | $ 26.6 | |
Maximum | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Glasscock and Reagan County - Working Interest Sale in Oil and Gas Properties | |||
Derivative [Line Items] | |||
Additional cash contingent consideration | 93.7 | ||
Maximum | 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 |
Derivatives - Gain (Loss) on De
Derivatives - Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative [Line Items] | ||
Gain (loss) on derivatives, net | $ 20,490 | $ (325,816) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | Nonoperating Income (Expense) |
Commodity | ||
Derivative [Line Items] | ||
Gain (loss) on derivatives, net | $ 17,582 | $ (329,724) |
Contingent consideration | ||
Derivative [Line Items] | ||
Gain (loss) on derivatives, net | 2,908 | 3,895 |
Interest rate | ||
Derivative [Line Items] | ||
Gain (loss) on derivatives, net | $ 0 | $ 13 |
Derivatives - Summary (Details)
Derivatives - Summary (Details) - Forecast - Not Designated as Hedges | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 MMBTU $ / MMBTU $ / bbl bbl | Dec. 31, 2024 MMBTU $ / bbl $ / MMBTU bbl | |
WTI NYMEX | Crude Oil | Collar | ||
Derivative [Line Items] | ||
Volume (Bbl) | bbl | 3,885,450 | 0 |
WTI NYMEX | Crude Oil | Collar | Minimum | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / bbl | 68.75 | 0 |
WTI NYMEX | Crude Oil | Collar | Maximum | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / bbl | 85.45 | 0 |
WTI NYMEX | Outstanding at End of Period | Crude Oil | Collar | ||
Derivative [Line Items] | ||
Volume (Bbl) | bbl | 3,658,000 | 0 |
WTI NYMEX | Outstanding at End of Period | Crude Oil | Collar | Minimum | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / bbl | 69 | 0 |
WTI NYMEX | Outstanding at End of Period | Crude Oil | Collar | Maximum | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / bbl | 85.47 | 0 |
Henry Hub NYMEX | Natural Gas | Collar | ||
Derivative [Line Items] | ||
Volume (MMBtu) | MMBTU | 20,377,996 | 776,292 |
Henry Hub NYMEX | Natural Gas | Collar | Minimum | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | 4.11 | 3.40 |
Henry Hub NYMEX | Natural Gas | Collar | Maximum | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | 8.32 | 6.11 |
Henry Hub NYMEX | Outstanding at End of Period | Natural Gas | Collar | ||
Derivative [Line Items] | ||
Volume (MMBtu) | MMBTU | 19,250,000 | 0 |
Henry Hub NYMEX | Outstanding at End of Period | Natural Gas | Collar | Minimum | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | 4.14 | 0 |
Henry Hub NYMEX | Outstanding at End of Period | Natural Gas | Collar | Maximum | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | 8.43 | 0 |
Waha Inside FERC to Henry Hub NYMEX | Natural Gas | Basis Swap | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | (1.53) | (0.82) |
Volume (MMBtu) | MMBTU | 31,638,996 | 4,891,992 |
Waha Inside FERC to Henry Hub NYMEX | Outstanding at End of Period | Natural Gas | Basis Swap | ||
Derivative [Line Items] | ||
Weighted-average price/differential (in USD per unit) | (1.53) | (0.75) |
Volume (MMBtu) | MMBTU | 30,250,000 | 3,660,000 |
Fair value measurements - Fair
Fair value measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Total gross fair value | $ 63,871 | $ 43,073 |
Net fair value presented on the consolidated balance sheets | 39,109 | 24,670 |
Net fair value presented on the consolidated balance sheets | 26,448 | 24,363 |
Liabilities: | ||
Net fair value presented on the consolidated balance sheets | (1,686) | (5,960) |
Amounts offset | 0 | 0 |
Net derivative asset positions | 63,871 | 43,073 |
Level 1 | ||
Liabilities: | ||
Net derivative asset positions | 0 | 0 |
Level 2 | ||
Liabilities: | ||
Net derivative asset positions | (35,778) | (16,433) |
Level 3 | ||
Liabilities: | ||
Net derivative asset positions | 28,093 | 26,640 |
Commodity Derivatives | ||
Assets: | ||
Net fair value presented on the consolidated balance sheets | 37,100 | 22,393 |
Net fair value presented on the consolidated balance sheets | 364 | |
Liabilities: | ||
Net fair value presented on the consolidated balance sheets | (1,686) | (5,960) |
Contingent Consideration | ||
Assets: | ||
Net fair value presented on the consolidated balance sheets | 2,009 | 2,277 |
Net fair value presented on the consolidated balance sheets | 26,084 | 24,363 |
Current Assets | Commodity Derivatives | ||
Assets: | ||
Total gross fair value | 41,453 | 35,586 |
Amounts offset | (4,353) | (13,193) |
Current Assets | Commodity Derivatives | Level 1 | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Current Assets | Commodity Derivatives | Level 2 | ||
Assets: | ||
Total gross fair value | 41,453 | 35,586 |
Current Assets | Commodity Derivatives | Level 3 | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Current Assets | Contingent Consideration | ||
Assets: | ||
Total gross fair value | 2,009 | 2,277 |
Amounts offset | 0 | 0 |
Current Assets | Contingent Consideration | Level 1 | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Current Assets | Contingent Consideration | Level 2 | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Current Assets | Contingent Consideration | Level 3 | ||
Assets: | ||
Total gross fair value | 2,009 | 2,277 |
Noncurrent Assets | Commodity Derivatives | ||
Assets: | ||
Total gross fair value | 364 | |
Amounts offset | 0 | |
Noncurrent Assets | Commodity Derivatives | Level 1 | ||
Assets: | ||
Total gross fair value | 0 | |
Noncurrent Assets | Commodity Derivatives | Level 2 | ||
Assets: | ||
Total gross fair value | 364 | |
Noncurrent Assets | Commodity Derivatives | Level 3 | ||
Assets: | ||
Total gross fair value | 0 | |
Noncurrent Assets | Contingent Consideration | ||
Assets: | ||
Total gross fair value | 26,084 | 24,363 |
Amounts offset | 0 | 0 |
Noncurrent Assets | Contingent Consideration | Level 1 | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Noncurrent Assets | Contingent Consideration | Level 2 | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Noncurrent Assets | Contingent Consideration | Level 3 | ||
Assets: | ||
Total gross fair value | 26,084 | 24,363 |
Current Liabilities | Commodity Derivatives | ||
Liabilities: | ||
Total gross fair value | (6,039) | (19,153) |
Amounts offset | 4,353 | 13,193 |
Current Liabilities | Commodity Derivatives | Level 1 | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Current Liabilities | Commodity Derivatives | Level 2 | ||
Liabilities: | ||
Total gross fair value | (6,039) | (19,153) |
Current Liabilities | Commodity Derivatives | Level 3 | ||
Liabilities: | ||
Total gross fair value | $ 0 | $ 0 |
Fair value measurements - Chang
Fair value measurements - Changes in Contingent Consideration (Details) - Contingent Consideration Derivative - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Change in Amount of Contingent Consideration, Liability [Roll Forward] | ||
Balance of Level 3 at beginning of period | $ 26,640 | $ 35,861 |
Change in Sixth Street Contingent Consideration fair value | 2,908 | 3,895 |
Settlements realized | (1,455) | 0 |
Balance of Level 3 at end of period | $ 28,093 | $ 39,756 |
Fair value measurements - Carry
Fair value measurements - Carrying Amount of Debt Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Carrying amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 1,174,151 | $ 1,124,151 |
Carrying amount | Secured Debt | Senior Secured Credit Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 120,000 | 70,000 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 1,115,849 | 1,080,329 |
Fair value | Secured Debt | Senior Secured Credit Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 119,889 | 69,945 |
January 2025 Notes | Carrying amount | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 455,628 | 455,628 |
January 2025 Notes | Fair value | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 458,827 | 449,122 |
January 2028 Notes | Carrying amount | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 300,309 | 300,309 |
January 2028 Notes | Fair value | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 288,375 | 292,846 |
July 2029 Notes | Carrying amount | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 298,214 | 298,214 |
July 2029 Notes | Fair value | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 248,758 | $ 268,416 |
Commitments and contingencies (
Commitments and contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Minimum volume commitment deficiency payments | $ 2.5 | $ 2.1 | |
Firm Sale and Transportation Commitments | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Minimum volume commitments deficiency payments liability | 11.9 | $ 11.5 | |
Future commitments | $ 151.8 |
Supplemental cash flow and no_3
Supplemental cash flow and non-cash information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Supplemental cash flow information: | ||
Cash paid for interest, net of $535 and $1,463 of capitalized interest, respectively | $ 51,147 | $ 63,057 |
Capitalized interest | 535 | 1,463 |
Supplemental non-cash operating information: | ||
Right-of-use assets obtained in exchange for operating lease liabilities | 124,128 | 9,949 |
Supplemental non-cash investing information: | ||
Change in accrued capital expenditures | $ 18,843 | $ 18,433 |
Income taxes (Details)
Income taxes (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (as a percent) | 1.37% | 1% |
Related parties (Details)
Related parties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Capital expenditures for oil and natural gas properties | $ 165,042 | $ 143,500 |
Halliburton | Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Operating lease liability | 79,700 | |
Capital expenditures for oil and natural gas properties | $ 32,249 | $ 30,141 |
Subsequent events - Narrative (
Subsequent events - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||||
Apr. 24, 2023 | Apr. 13, 2023 | Apr. 03, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | May 05, 2023 | Apr. 28, 2023 | |
Subsequent Event [Line Items] | |||||||
Borrowings on Senior Secured Credit Facility | $ 95,000 | $ 50,000 | |||||
Repayments of long-term lines of credit | 45,000 | $ 55,000 | |||||
Secured Debt | Senior Secured Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Amount of debt outstanding | 120,000 | ||||||
Borrowing base | 1,300,000 | ||||||
Aggregate elected commitment | $ 1,000,000 | ||||||
Subsequent Event | Secured Debt | Senior Secured Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Borrowings on Senior Secured Credit Facility | $ 30,000 | $ 120,000 | |||||
Repayments of long-term lines of credit | $ 15,000 | ||||||
Amount of debt outstanding | $ 255,000 | ||||||
Borrowing base | $ 1,300,000 | ||||||
Aggregate elected commitment | $ 1,000,000 | ||||||
Driftwood Acquisition | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Stock issued in asset acquisition (in shares) | 1,578,948 |
Subsequent events - Commodity D
Subsequent events - Commodity Derivatives (Details) - Forecast - Not Designated as Hedges | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 MMBTU $ / MMBTU $ / bbl bbl | Dec. 31, 2024 MMBTU $ / MMBTU $ / bbl bbl | |
WTI NYMEX | Crude Oil | Swap | ||
Subsequent Event [Line Items] | ||
Volume (Bbl) | bbl | 1,287,000 | 75,950 |
Weighted-average price/differential (in USD per unit) | $ / bbl | 74.27 | 63.75 |
WTI NYMEX | Crude Oil | Collar | ||
Subsequent Event [Line Items] | ||
Volume (Bbl) | bbl | 3,885,450 | 0 |
WTI NYMEX | Crude Oil | Collar | Minimum | ||
Subsequent Event [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / bbl | 68.75 | 0 |
WTI NYMEX | Crude Oil | Collar | Maximum | ||
Subsequent Event [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / bbl | 85.45 | 0 |
WTI NYMEX | Crude Oil | Three-way Collar | ||
Subsequent Event [Line Items] | ||
Volume (Bbl) | bbl | 301,250 | 217,350 |
Weighted-average price/differential (in USD per unit) | $ / bbl | 45.58 | 50 |
WTI NYMEX | Crude Oil | Three-way Collar | Minimum | ||
Subsequent Event [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / bbl | 57.71 | 66.51 |
WTI NYMEX | Crude Oil | Three-way Collar | Maximum | ||
Subsequent Event [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / bbl | 74.45 | 87.09 |
Argus WTI Midland to Argus WTI | Crude Oil | Basis Swap | ||
Subsequent Event [Line Items] | ||
Volume (Bbl) | bbl | 458,100 | 293,300 |
Weighted-average price/differential (in USD per unit) | $ / bbl | 0.18 | 0.11 |
Henry Hub NYMEX | Natural Gas | Swap | ||
Subsequent Event [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / MMBTU | 2.46 | 3.29 |
Volume (MMBtu) | MMBTU | 120,500 | 455,700 |
Henry Hub NYMEX | Natural Gas | Collar | ||
Subsequent Event [Line Items] | ||
Volume (MMBtu) | MMBTU | 20,377,996 | 776,292 |
Henry Hub NYMEX | Natural Gas | Collar | Minimum | ||
Subsequent Event [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / MMBTU | 4.11 | 3.40 |
Henry Hub NYMEX | Natural Gas | Collar | Maximum | ||
Subsequent Event [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / MMBTU | 8.32 | 6.11 |
Henry Hub NYMEX | Natural Gas | Three-way Collar | ||
Subsequent Event [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / MMBTU | 2 | 0 |
Volume (MMBtu) | MMBTU | 140,500 | 0 |
Henry Hub NYMEX | Natural Gas | Three-way Collar | Minimum | ||
Subsequent Event [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / MMBTU | 2.50 | 0 |
Henry Hub NYMEX | Natural Gas | Three-way Collar | Maximum | ||
Subsequent Event [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / MMBTU | 3.01 | 0 |
Waha Inside FERC to Henry Hub NYMEX | Natural Gas | Basis Swap | ||
Subsequent Event [Line Items] | ||
Weighted-average price/differential (in USD per unit) | $ / MMBTU | (1.53) | (0.82) |
Volume (MMBtu) | MMBTU | 31,638,996 | 4,891,992 |