Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 6-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Midstates Petroleum Company, Inc. | ' |
Entity Central Index Key | '0001533924 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 70,272,636 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $14,648 | $33,163 |
Accounts receivable: | ' | ' |
Oil and gas sales | 105,250 | 102,483 |
Joint interest billing | 58,664 | 42,631 |
Other | 1,150 | 1,090 |
Commodity derivative contracts | ' | 700 |
Deferred income taxes | 7,869 | 11,837 |
Other current assets | 4,378 | 693 |
Total current assets | 191,959 | 192,597 |
PROPERTY AND EQUIPMENT: | ' | ' |
Oil and gas properties, on the basis of full cost accounting | 3,202,699 | 3,060,661 |
Other property and equipment | 11,782 | 11,113 |
Less accumulated depreciation, depletion, amortization and impairment | -1,130,248 | -976,880 |
Net property and equipment | 2,084,233 | 2,094,894 |
OTHER ASSETS: | ' | ' |
Commodity derivative contracts | 827 | 19 |
Other noncurrent assets | 52,993 | 54,597 |
Total other assets | 53,820 | 54,616 |
TOTAL | 2,330,012 | 2,342,107 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 24,799 | 21,493 |
Accrued liabilities | 268,063 | 204,381 |
Commodity derivative contracts | 37,147 | 27,880 |
Total current liabilities | 330,009 | 253,754 |
LONG-TERM LIABILITIES: | ' | ' |
Asset retirement obligations | 27,184 | 26,308 |
Commodity derivative contracts | 2,355 | 3,651 |
Long-term debt | 1,701,150 | 1,701,150 |
Deferred income taxes | 9,053 | 15,291 |
Other long-term liabilities | 2,491 | 1,954 |
Total long-term liabilities | 1,742,233 | 1,748,354 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $0.01 par value, 49,675,000 shares authorized; no shares issued or outstanding | ' | ' |
Common stock, $0.01 par value, 300,000,000 shares authorized; 70,595,724 shares issued and 70,341,865 shares outstanding at March 31, 2014 and 68,925,745 shares issued and 68,807,043 shares outstanding at December 31, 2013 | 705 | 689 |
Treasury stock | -1,313 | -664 |
Additional paid-in-capital | 873,096 | 871,047 |
Retained deficit | -614,721 | -531,076 |
Total stockholders' equity | 257,770 | 339,999 |
TOTAL | 2,330,012 | 2,342,107 |
Series A mandatorily convertible preferred stock, $0.01 par value, $365,581 and $358,550 liquidation value at March 31, 2014 and December 31, 2013, respectively; 8% cumulative dividends; 325,000 shares issued and outstanding | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $0.01 par value, 49,675,000 shares authorized; no shares issued or outstanding | 3 | 3 |
Total stockholders' equity | $3 | $3 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 70,595,724 | 68,925,745 |
Common stock, shares outstanding | 70,341,865 | 68,807,043 |
Preferred stock, $0.01 par value, 49,675,000 shares authorized; no shares issued or outstanding | ' | ' |
Preferred stock, shares authorized | 49,675,000 | 49,675,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series A mandatorily convertible preferred stock, $0.01 par value, $365,581 and $358,550 liquidation value at March 31, 2014 and December 31, 2013, respectively; 8% cumulative dividends; 325,000 shares issued and outstanding | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares issued | 325,000 | 325,000 |
Preferred stock, shares outstanding | 325,000 | 325,000 |
Preferred stock, liquidation value (in dollars per share) | $365,581 | $358,550 |
Preferred stock, cumulative dividends (as a percent) | 8.00% | 8.00% |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUES : | ' | ' |
Oil sales | $116,222 | $72,218 |
Natural gas liquid sales | 25,519 | 9,719 |
Natural gas sales | 25,385 | 8,795 |
Losses on commodity derivative contracts - net | -22,673 | -20,124 |
Other | 209 | 414 |
Total revenues | 144,662 | 71,022 |
EXPENSES : | ' | ' |
Lease operating and workover | 20,127 | 13,871 |
Gathering and transportation | 2,855 | ' |
Severance and other taxes | 7,647 | 5,955 |
Asset retirement accretion | 497 | 254 |
Depreciation, depletion, and amortization | 66,901 | 41,976 |
Impairment in carrying value of oil and gas properties | 86,471 | ' |
General and administrative | 11,684 | 11,026 |
Acquisition and transaction costs | 128 | ' |
Other | 330 | ' |
Total expenses | 196,640 | 73,082 |
OPERATING LOSS | -51,978 | -2,060 |
OTHER INCOME (EXPENSE) | ' | ' |
Interest income | 10 | 5 |
Interest expense - net of amounts capitalized | -33,947 | -10,867 |
Total other income (expense) | -33,937 | -10,862 |
LOSS BEFORE TAXES | -85,915 | -12,922 |
Income tax benefit | 2,270 | 4,973 |
NET LOSS | -83,645 | -7,949 |
Preferred stock dividend | -2,620 | -4,117 |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | ($86,265) | ($12,066) |
Basic and diluted net loss per share attributable to common shareholders (in dollars per share) | ($1.31) | ($0.18) |
Basic and diluted weighted average number of common shares outstanding (in shares) | 65,987 | 65,634 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Treasury Stock | Additional Paid-in-Capital | Retained Deficit/Accumulated Loss | Series A Preferred Stock |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2013 | $339,999 | $689 | ($664) | $871,047 | ($531,076) | $3 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Share-based compensation | 2,065 | 16 | ' | 2,049 | ' | ' |
Acquisition of treasury stock | -649 | ' | -649 | ' | ' | ' |
Net loss | -83,645 | ' | ' | ' | -83,645 | ' |
Balance at Mar. 31, 2014 | $257,770 | $705 | ($1,313) | $873,096 | ($614,721) | $3 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($83,645) | ($7,949) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Losses on commodity derivative contracts - net | 22,673 | 20,124 |
Net cash paid for commodity derivative contracts not designated as hedging instruments | -14,810 | -5,004 |
Asset retirement accretion | 497 | 254 |
Depreciation, depletion, and amortization | 66,901 | 41,976 |
Impairment in carrying value of oil and gas properties | 86,471 | ' |
Share-based compensation, net of amounts capitalized to oil and gas properties | 1,541 | 1,244 |
Deferred income taxes | -2,270 | -4,973 |
Amortization of deferred financing costs | 2,386 | 984 |
Change in operating assets and liabilities: | ' | ' |
Accounts receivable - oil and gas sales | -2,767 | -9,002 |
Accounts receivable - JIB and other | -16,093 | -2,796 |
Other current and noncurrent assets | -3,972 | -536 |
Accounts payable | 2,813 | -925 |
Accrued liabilities | 37,170 | 28,847 |
Other | 537 | -41 |
Net cash provided by operating activities | 97,432 | 62,203 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Investment in property and equipment | -114,803 | -132,538 |
Net cash used in investing activities | -114,803 | -132,538 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from long-term borrowings | ' | 102,450 |
Deferred financing costs | -495 | -368 |
Acquisition of treasury stock | -649 | ' |
Net cash (used in) provided by financing activities | -1,144 | 102,082 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -18,515 | 31,747 |
Cash and cash equivalents, beginning of period | 33,163 | 18,878 |
Cash and cash equivalents, end of period | 14,648 | 50,625 |
SUPPLEMENTAL INFORMATION: | ' | ' |
Non-cash transactions - investments in property and equipment accrued - not paid | $134,000 | $82,562 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ' | ' |
Capitalized interest | $4.60 | $7.10 |
Organization_and_Business
Organization and Business | 3 Months Ended |
Mar. 31, 2014 | |
Organization and Business | ' |
Organization and Business | ' |
1. Organization and Business | |
Midstates Petroleum Company, Inc., through its wholly owned subsidiary Midstates Petroleum Company LLC, engages in the business of drilling for, and production of, oil, natural gas and natural gas liquids. Midstates Petroleum Company, Inc. was incorporated pursuant to the laws of the State of Delaware on October 25, 2011 to become a holding company for Midstates Petroleum Company LLC (“Midstates Sub”), which was previously a wholly owned subsidiary of Midstates Petroleum Holdings LLC (“Holdings LLC”). Pursuant to the terms of a corporate reorganization that was completed in connection with the closing of Midstates Petroleum Company, Inc.’s initial public offering on April 25, 2012, all of the interests in Midstates Petroleum Holdings LLC were exchanged for newly issued common shares of Midstates Petroleum Company, Inc., and as a result, Midstates Petroleum Company LLC became a wholly owned subsidiary of Midstates Petroleum Company, Inc. and Midstates Petroleum Holdings LLC ceased to exist as a separate entity. The terms “the Company,” “we,” “us,” “our,” and similar terms when used in the present tense, prospectively or for historical periods since April 25, 2012, refer to Midstates Petroleum Company, Inc. and its subsidiary, and for historical periods prior to April 25, 2012, refer to Midstates Petroleum Holdings LLC and its subsidiary, unless the context indicates otherwise. The term “Holdings LLC” refers solely to Midstates Petroleum Holdings LLC prior to the corporate reorganization. | |
On May 31, 2013, the Company closed on the acquisition of producing properties and undeveloped acreage in the Anadarko Basin in Texas and Oklahoma from Panther Energy Company, LLC and its partners for approximately $618 million in cash (the “Anadarko Basin Acquisition”), before customary post-closing adjustments. The Company funded the purchase price with a portion of the net proceeds from the private placement of $700 million in aggregate principal amount of 9.25% senior unsecured notes due 2021, which also closed on May 31, 2013 (“2021 Senior Notes”). | |
On March 5, 2014, the Company executed a Purchase and Sale Agreement (“PSA”) to sell all of its ownership interest in developed and undeveloped acreage in the Pine Prairie field area of Evangeline Parish, Louisiana to a private buyer for a purchase price of $170 million in cash, subject to standard post-closing adjustments. The PSA has an effective date of November 1, 2013. Acreage subject to the transaction does not include acreage and production in the western part of Louisiana in Beauregard Parish or other undeveloped acreage held outside the Pine Prairie field. The sale closed on May 1, 2014. See Note 13. | |
The Company has oil and gas operations and properties in Louisiana, Oklahoma, Texas and Kansas. At March 31, 2014, the Company operated oil and natural gas properties as one reportable segment engaged in the exploration, development and production of oil, natural gas liquids and natural gas. The Company’s management evaluated performance based on one reportable segment as there were not significantly different economic or operational environments within its oil and natural gas properties. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
Basis of Presentation | |
These interim financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain disclosures have been condensed or omitted from these financial statements. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements, and should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K as filed with the SEC on March 24, 2014. | |
All intercompany transactions have been eliminated in consolidation. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary to fairly present the financial position as of, and the results of operations for, all periods presented. In preparing the accompanying condensed consolidated financial statements, management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. | |
Recent Accounting Pronouncements | |
The Company reviewed recently issued accounting pronouncements that became effective during the three months ended March 31, 2014, and determined that none would have a material impact on the Company’s condensed consolidated financial statements. | |
Fair_Value_Measurements_of_Fin
Fair Value Measurements of Financial Instruments | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Fair Value Measurements of Financial Instruments | ' | |||||||||||||
Fair Value Measurements of Financial Instruments | ' | |||||||||||||
3. Fair Value Measurements of Financial Instruments | ||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||
Derivative Instruments | ||||||||||||||
Commodity derivative contracts reflected in the condensed consolidated balance sheets are recorded at estimated fair value. At March 31, 2014 and December 31, 2013, all of the Company’s commodity derivative contracts were with seven bank counterparties, and were classified as Level 2 in the fair value input hierarchy. | ||||||||||||||
Derivative instruments listed below are presented gross and include collars and swaps that are carried at fair value. The Company records the net change in the fair value of these positions in “Losses on commodity derivative contracts — net” in the Company’s unaudited condensed consolidated statements of operations. See Note 4 for additional information on the Company’s derivative instruments and balance sheet presentation. | ||||||||||||||
Fair Value Measurements at March 31, 2014 | ||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||
Active Markets | Other | Unobservable | ||||||||||||
(Level 1) | Observable | Inputs | ||||||||||||
Inputs | (Level 3) | |||||||||||||
(Level 2) | ||||||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Commodity derivative NGL swaps | $ | — | $ | 391 | $ | — | $ | 391 | ||||||
Commodity derivative gas swaps | — | 827 | — | 827 | ||||||||||
Commodity derivative oil collars | — | 4 | — | 4 | ||||||||||
Commodity derivative gas collars | — | 261 | — | 261 | ||||||||||
Commodity derivative differential swaps | — | 746 | — | 746 | ||||||||||
Total assets | $ | — | $ | 2,229 | $ | — | $ | 2,229 | ||||||
Liabilities: | ||||||||||||||
Commodity derivative oil swaps | $ | — | $ | 35,022 | $ | — | $ | 35,022 | ||||||
Commodity derivative NGL swaps | — | 75 | — | 75 | ||||||||||
Commodity derivative gas swaps | — | 5,391 | — | 5,391 | ||||||||||
Commodity derivative oil collars | — | 352 | — | 352 | ||||||||||
Commodity derivative gas collars | — | 64 | — | 64 | ||||||||||
Total liabilities | $ | — | $ | 40,904 | $ | — | $ | 40,904 | ||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||
Active Markets | Other | Unobservable | ||||||||||||
(Level 1) | Observable | Inputs | ||||||||||||
Inputs | (Level 3) | |||||||||||||
(Level 2) | ||||||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Commodity derivative NGL swaps | $ | — | $ | 469 | $ | — | $ | 469 | ||||||
Commodity derivative gas swaps | — | 488 | — | 488 | ||||||||||
Commodity derivative oil collars | — | 64 | — | 64 | ||||||||||
Commodity derivative gas collars | — | 751 | — | 751 | ||||||||||
Commodity derivative differential swaps | — | 806 | — | 806 | ||||||||||
Total assets | $ | — | $ | 2,578 | $ | — | $ | 2,578 | ||||||
Liabilities: | ||||||||||||||
Commodity derivative oil swaps | $ | — | $ | 32,209 | $ | — | $ | 32,209 | ||||||
Commodity derivative NGL swaps | — | 74 | — | 74 | ||||||||||
Commodity derivative gas swaps | — | 809 | — | 809 | ||||||||||
Commodity derivative oil collars | — | 272 | — | 272 | ||||||||||
Commodity derivative gas collars | — | 26 | — | 26 | ||||||||||
Total liabilities | $ | — | $ | 33,390 | $ | — | $ | 33,390 | ||||||
Risk_Management_and_Derivative
Risk Management and Derivative Instruments | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Risk Management and Derivative Instruments | ' | ||||||||||||
Risk Management and Derivative Instruments | ' | ||||||||||||
4. Risk Management and Derivative Instruments | |||||||||||||
The Company’s production is exposed to fluctuations in crude oil, NGL and natural gas prices. The Company believes it is prudent to manage the variability in cash flows by entering into derivative financial instruments to economically hedge a portion of its crude oil, NGL and natural gas production. The Company utilizes various types of derivative financial instruments, including swaps and collars, to reduce fluctuations in cash flows resulting from changes in commodity prices. These derivative contracts are placed with major financial institutions that the Company believes are minimal credit risks. The oil, NGL and natural gas reference prices, upon which the commodity derivative contracts are based, reflect various market indices that management believes have a high degree of historical correlation with actual prices received by the Company for its crude oil, NGL and natural gas production. | |||||||||||||
Inherent in the Company’s portfolio of commodity derivative contracts are certain business risks, including market risk and credit risk. Market risk is the risk that the price of the commodity will change, either favorably or unfavorably, in response to changing market conditions. Credit risk is the risk of loss from nonperformance by the Company’s counterparty to a contract. The Company does not require collateral from its counterparties but does attempt to minimize its credit risk associated with derivative instruments by entering into derivative instruments only with counterparties that are large financial institutions, which management believes present minimal credit risk. In addition, to mitigate its risk of loss due to default, the Company has entered into agreements with its counterparties on its derivative instruments that allow the Company to offset its asset position with its liability position in the event of default by the counterparty. Due to the netting arrangements, had the Company’s counterparties failed to perform under existing commodity derivative contracts, the maximum loss at March 31, 2014 would have been approximately $0.8 million. | |||||||||||||
Commodity Derivative Contracts | |||||||||||||
As of March 31, 2014, the Company had the following open commodity derivative contract positions: | |||||||||||||
Hedged | Weighted-Average | ||||||||||||
Volume | Fixed Price | ||||||||||||
Oil (Bbls): | |||||||||||||
WTI Swaps — 2014 | 3,274,950 | $ | 88.85 | ||||||||||
WTI Swaps — 2015 | 1,820,000 | $ | 86.55 | ||||||||||
WTI Collars — 2014 | 123,000 | $ | 88.27 | - | $ | 97.91 | |||||||
WTI to LLS Basis Differential Swaps — 2014 (1) | 366,000 | $ | 5.35 | ||||||||||
NGL (Bbls): | |||||||||||||
NGL Swaps — 2014 | 81,000 | $ | 61.86 | ||||||||||
Natural Gas (MMBtu): | |||||||||||||
Swaps — 2014 (2) | 13,475,000 | $ | 4.17 | ||||||||||
Swaps — 2015 | 18,250,000 | $ | 4.13 | ||||||||||
Collars — 2014 (3) | 1,188,003 | $ | 3.96 | - | $ | 5.06 | |||||||
(1) The Company enters into swap arrangements intended to fix the differential between the Louisiana Light Sweet (“LLS”) pricing and the West Texas Intermediate (“NYMEX WTI”) pricing. | |||||||||||||
(2) Includes 1,470,000 MMBtus in natural gas swaps that priced during the period, but had not cash settled as of March 31, 2014. | |||||||||||||
(3) Includes 64,667 MMBtus that priced during the period, but had not cash settled as of March 31, 2014. | |||||||||||||
Balance Sheet Presentation | |||||||||||||
The following table summarizes the gross fair values of derivative instruments by the appropriate balance sheet classification, even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the Company’s unaudited condensed consolidated balance sheets at March 31, 2014 and December 31, 2013, respectively (in thousands): | |||||||||||||
Type | Balance Sheet Location (1) | March 31, 2014 | December 31, 2013 | ||||||||||
Oil Swaps | Derivative financial instruments — Current Liabilities | $ | (32,667 | ) | $ | (28,871 | ) | ||||||
Oil Swaps | Derivative financial instruments — Non-Current Liabilities | (2,355 | ) | (3,338 | ) | ||||||||
NGL Swaps | Derivative financial instruments — Current Assets | 391 | 469 | ||||||||||
NGL Swaps | Derivative financial instruments — Current Liabilities | (75 | ) | (74 | ) | ||||||||
Gas Swaps | Derivative financial instruments — Current Assets | — | 469 | ||||||||||
Gas Swaps | Derivative financial instruments — Non-Current Assets | 827 | 19 | ||||||||||
Gas Swaps | Derivative financial instruments — Current Liabilities | (5,391 | ) | (496 | ) | ||||||||
Gas Swaps | Derivative financial instruments — Non-Current Liabilities | — | (313 | ) | |||||||||
Oil Collars | Derivative financial instruments — Current Assets | 4 | 64 | ||||||||||
Oil Collars | Derivative financial instruments — Current Liabilities | (352 | ) | (272 | ) | ||||||||
Gas Collars | Derivative financial instruments — Current Assets | 261 | 751 | ||||||||||
Gas Collars | Derivative financial instruments — Current Liabilities | (64 | ) | (26 | ) | ||||||||
Basis Differential Swaps | Derivative financial instruments — Current Assets | 746 | 806 | ||||||||||
Total derivative fair value at period end | $ | (38,675 | ) | $ | (30,812 | ) | |||||||
(1) The fair values of commodity derivative instruments reported in the Company’s condensed consolidated balance sheets are subject to netting arrangements and qualify for net presentation. The following table summarizes the location and fair value amounts of all derivative instruments in the unaudited condensed consolidated balance sheets, as well as the gross recognized derivative assets, liabilities and amounts offset in the unaudited condensed consolidated balance sheets at March 31, 2014 and December 31, 2013, respectively (in thousands): | |||||||||||||
March 31, 2014 | |||||||||||||
Not Designated as ASC | Balance Sheet Classification | Gross Recognized | Gross Amounts | Net Recognized Fair | |||||||||
815 Hedges: | Assets/ | Offset | Value Assets/ | ||||||||||
Liabilities | Liabilities | ||||||||||||
Derivative assets: | |||||||||||||
Commodity contracts | Derivative financial instruments - current | $ | 1,402 | $ | 1,402 | $ | — | ||||||
Commodity contracts | Derivative financial instruments - noncurrent | 827 | — | 827 | |||||||||
$ | 2,229 | $ | 1,402 | $ | 827 | ||||||||
Derivative liabilities: | |||||||||||||
Commodity contracts | Derivative financial instruments - current | $ | 38,549 | $ | 1,402 | $ | 37,147 | ||||||
Commodity contracts | Derivative financial instruments - noncurrent | 2,355 | — | 2,355 | |||||||||
$ | 40,904 | $ | 1,402 | $ | 39,502 | ||||||||
December 31, 2013 | |||||||||||||
Not Designated as ASC | Balance Sheet Classification | Gross Recognized | Gross Amounts | Net Recognized Fair | |||||||||
815 Hedges: | Assets/ | Offset | Value Assets/ | ||||||||||
Liabilities | Liabilities | ||||||||||||
Derivative assets: | |||||||||||||
Commodity contracts | Derivative financial instruments - current | $ | 2,559 | $ | 1,859 | $ | 700 | ||||||
Commodity contracts | Derivative financial instruments - noncurrent | 19 | — | 19 | |||||||||
$ | 2,578 | $ | 1,859 | $ | 719 | ||||||||
Derivative liabilities: | |||||||||||||
Commodity contracts | Derivative financial instruments - current | $ | 29,739 | $ | 1,859 | $ | 27,880 | ||||||
Commodity contracts | Derivative financial instruments - noncurrent | 3,651 | — | 3,651 | |||||||||
$ | 33,390 | $ | 1,859 | $ | 31,531 | ||||||||
Gains (losses) on Commodity Derivative Contracts | |||||||||||||
The Company does not designate its commodity derivative contracts as hedging instruments for financial reporting purposes. Accordingly, commodity derivative contracts are marked-to-market each quarter with the change in fair value during the periodic reporting period recognized currently as a gain or loss in “Losses on commodity derivative contracts - net” within revenues in the unaudited condensed consolidated statements of operations. | |||||||||||||
The following table presents realized net losses and unrealized net (losses) gains recorded by the Company related to the change in fair value of the derivative instruments in “Losses on commodity derivative contracts — net” for the periods presented: | |||||||||||||
For the Three Months | |||||||||||||
Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Realized net losses | $ | (14,810 | ) | $ | (5,004 | ) | |||||||
Unrealized net losses | (7,863 | ) | (15,120 | ) | |||||||||
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property and Equipment | ' | |||||||
Property and Equipment | ' | |||||||
5. Property and Equipment | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Oil and gas properties, on the basis of full cost accounting: | ||||||||
Proved properties | $ | 3,017,064 | $ | 2,817,062 | ||||
Unevaluated properties | 185,635 | 243,599 | ||||||
Other property and equipment | 11,782 | 11,113 | ||||||
Less accumulated depreciation, depletion, amortization and impairment | (1,130,248 | ) | (976,880 | ) | ||||
Net property and equipment | $ | 2,084,233 | $ | 2,094,894 | ||||
Oil and Gas Properties | ||||||||
For the three months ended March 31, 2014 and 2013, the Company capitalized $3.1 million and $1.5 million, respectively, of internal costs directly related to exploration and development activities to oil and gas properties. Note that these amounts are inclusive of $0.5 million and $0.2 million of qualifying share-based compensation expense for the three months ended March 31, 2014 and 2013, respectively. | ||||||||
The Company accounts for its oil and gas properties under the full cost method. Under the full cost method, proceeds from the sale or disposition of oil and gas properties are accounted for as a reduction to capitalized costs unless a significant portion of the Company’s reserve quantities are sold such that it results in a significant alteration of the relationship between capitalized costs and remaining proved reserves, in which case a gain or loss is generally recognized in income. | ||||||||
The Company performs a ceiling test on a quarterly basis. The test establishes a limit (ceiling) on the book value of oil and gas properties. The capitalized costs of oil and gas properties, net of accumulated DD&A and the related deferred income taxes, may not exceed this “ceiling.” The ceiling limitation is equal to the sum of: (i) the present value of estimated future net revenues from the projected production of proved oil and gas reserves, excluding future cash outflows associated with settling asset retirement obligations (“ARO”) accrued on the balance sheet, calculated using the average oil and natural gas sales price received by the Company as of the first trading day of each month over the preceding twelve months (such prices are held constant throughout the life of the properties) and a discount factor of 10%; (ii) the cost of unproved and unevaluated properties excluded from the costs being amortized; (iii) the lower of cost or estimated fair value of unproved properties included in the costs being amortized; and (iv) related income tax effects. If capitalized costs exceed this ceiling, the excess is charged to expense in the accompanying consolidated statements of operations. | ||||||||
At March 31, 2014 capitalized costs exceeded the ceiling and an impairment of oil and gas properties of $83.5 million, after tax, was recorded. At March 31, 2013, capitalized costs did not exceed the ceiling, and an impairment to oil and gas properties was not required. | ||||||||
Depreciation, depletion and amortization is calculated using the Units of Production Method (“UOP”). The UOP calculation multiplies the percentage of estimated proved reserves produced by the cost of those reserves. The result is to recognize expense at the same pace that the reservoirs are estimated to be depleting. The amortization base in the UOP calculation includes the sum of proved property costs net of accumulated depreciation, depletion and amortization (“DD&A”), estimated future development costs (future costs to access and develop proved reserves) and asset retirement costs that are not already included in oil and gas property, less related salvage value. The following table presents depletion expense related to oil and gas properties for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Depletion expense (in thousands) | $ | 66,204 | $ | 41,589 | ||||
Depletion expense (per Boe) | $ | 25.37 | $ | 28.51 | ||||
Oil and gas unevaluated properties and properties under development include costs that are not being depleted or amortized. These costs represent investments in unproved properties. The Company excludes these costs until proved reserves are found, until it is determined that the costs are impaired or until major development projects are placed in service, at which time the costs are moved into oil and natural gas properties subject to amortization. All unproved property costs are reviewed at least quarterly to determine if impairment has occurred. Unevaluated property was $185.6 million at March 31, 2014 compared to $243.6 million at December 31, 2013, decreasing primarily due to transfers of approximately $21.4 million and $38.1 million related to the Mississippian Lime and Anadarko Basin areas, respectively. | ||||||||
Other Property and Equipment | ||||||||
Other property and equipment consists of vehicles, furniture and fixtures, and computer hardware and software and are carried at cost. Depreciation is calculated principally using the straight-line method over the estimated useful lives of the assets, which range from five to seven years. Maintenance and repairs are charged to expense as incurred, while renewals and betterments are capitalized. | ||||||||
Anadarko Basin Acquisition—May 2013 | ||||||||
On May 31, 2013, the Company closed on the acquisition of producing properties and undeveloped acreage in the Anadarko Basin in Texas and Oklahoma from Panther Energy Company, LLC and its partners for approximately $618 million in cash (before customary post-closing adjustments). The Company funded the purchase price of the Anadarko Basin Acquisition with a portion of the net proceeds from the private placement of $700 million in aggregate principal amount of 9.25% senior unsecured notes due 2021, which also closed on May 31, 2013. | ||||||||
The transaction was accounted for using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The final determination of fair value for certain assets and liabilities remains preliminary and will be completed after post-closing purchase price adjustments are finalized, but no later than one year from the acquisition date. | ||||||||
Since December 31, 2013 the Company has recorded adjustments to the purchase price to reduce the amounts allocated to proved and unproved properties by $0.4 million and $0.1 million, respectively. The following table reflects the adjusted allocation as of March 31, 2014 (in thousands): | ||||||||
Anadarko Basin Acquisition | ||||||||
Oil and gas properties | ||||||||
Proved | $ | 417,898 | ||||||
Unevaluated | 207,683 | |||||||
Total assets acquired | $ | 625,581 | ||||||
Asset retirement obligations | 6,296 | |||||||
Total liabilities assumed | $ | 6,296 | ||||||
Net assets acquired | $ | 619,285 | ||||||
Actual and Pro Forma Information | ||||||||
Revenues attributable to the Anadarko Basin Acquisition included in the Company’s unaudited condensed consolidated statements of operations for the three months ended March 31, 2014 were $50.7 million. | ||||||||
The following table presents unaudited pro forma information for the Company as if the Anadarko Basin Acquisition occurred on January 1, 2013 (in thousands, other than per share amounts): | ||||||||
For the Three Months | ||||||||
Ended March 31, | ||||||||
2013 | ||||||||
Revenues and other | $ | 112,861 | ||||||
Net loss | (11,524 | ) | ||||||
Preferred stock dividends | (4,117 | ) | ||||||
Loss attributable to common shareholders | $ | (15,641 | ) | |||||
Net loss per common share - basic and diluted | $ | (0.24 | ) | |||||
The historical financial information was adjusted to give effect to the pro forma events that were directly attributable to the Anadarko Basin Acquisition and are factually supportable. The unaudited pro forma consolidated results are not necessarily indicative of what the Company’s consolidated results of operations actually would have been had the acquisition been completed on January 1, 2013. | ||||||||
In addition, the unaudited pro forma consolidated results do not purport to project the future results of operations for the combined Company. | ||||||||
Pine Prairie Disposition | ||||||||
On March 5, 2014, the Company executed a Purchase and Sale Agreement (“PSA”) to sell all of its ownership interest in developed and undeveloped acreage in the Pine Prairie field area of Evangeline Parish, Louisiana to a private buyer for a purchase price of $170 million in cash, subject to standard post-closing adjustments. The PSA has an effective date of November 1, 2013. Acreage subject to the transaction does not include acreage and production in the western part of Louisiana in Beauregard Parish or other undeveloped acreage held outside the Pine Prairie field. The sale closed on May 1, 2014. See Note 13. | ||||||||
Other_Noncurrent_Assets
Other Noncurrent Assets | 3 Months Ended |
Mar. 31, 2014 | |
Other Noncurrent Assets | ' |
Other Noncurrent Assets | ' |
6. Other Noncurrent Assets | |
At March 31, 2014, other noncurrent assets consisted of $42.8 million in deferred financing costs, $10.0 million in field inventory, and $0.2 million in other noncurrent assets. | |
At December 31, 2013, other noncurrent assets consisted of $44.7 million in deferred financing costs, $9.7 million in field inventory, and $0.2 million in other noncurrent assets. | |
Accrued_Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2014 | |
Accrued Liabilities | ' |
Accrued Liabilities | ' |
7. Accrued Liabilities | |
Accrued liabilities at March 31, 2014 consisted of $114.2 million in accrued oil and gas capital expenditures, $53.7 million in accrued interest, $67.5 million in accrued revenue and royalty distributions, $7.8 million in accrued taxes, $7.0 million in accrued lease operating and workover expenses and $17.9 million in other accrued liabilities. | |
Accrued liabilities at December 31, 2013 consisted of $87.2 million in accrued oil and gas capital expenditures, $64.4 million in accrued revenue and royalty distributions, $21.3 million in accrued interest, $8.3 million in accrued lease operating and workover expenses, $4.4 million in accrued taxes, and $18.8 million in other accrued liabilities. | |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Long-Term Debt | ' | |||||||
Long-Term Debt | ' | |||||||
8. Long-Term Debt | ||||||||
The Company’s long-term debt as of March 31, 2014 and December 31, 2013 is as follows (in thousands): | ||||||||
At March 31, 2014 | At December 31, 2013 | |||||||
(in thousands) | ||||||||
Revolving credit facility, due 2018 | $ | 401,150 | $ | 401,150 | ||||
Senior notes, due 2020 | 600,000 | 600,000 | ||||||
Senior notes, due 2021 | 700,000 | 700,000 | ||||||
Long-term debt | $ | 1,701,150 | $ | 1,701,150 | ||||
Reserve-based Credit Facility | ||||||||
As of March 31, 2014, the Company’s credit facility consisted of a $750 million senior revolving credit facility (the “Credit Facility”) with a borrowing base of $500 million, as recently reaffirmed on March 28, 2014, subject to the provisions discussed below. At March 31, 2014, outstanding letters of credit obligations total $0.2 million. | ||||||||
The Credit Facility matures on May 31, 2018 and borrowings thereunder are secured by substantially all of the Company’s oil and natural gas properties and bore interest at LIBOR plus an applicable margin, depending upon the Company’s borrowing base utilization, between 1.75% and 2.75% per annum. At March 31, 2014 and 2013, the weighted average interest rate was 2.7% and 2.4%, respectively. | ||||||||
In addition to interest expense, the Credit Facility requires the payment of a commitment fee each quarter. The commitment fee is computed at the rate of either 0.375% or 0.50% per annum based on the average daily amount by which the borrowing base exceeds the outstanding borrowings during each quarter. | ||||||||
The borrowing base under the Credit Facility is subject to semiannual redeterminations in April and October and up to one additional time per six month period following each scheduled borrowing base redetermination, as may be requested by the Company or the administrative agent acting on behalf of lenders holding at least two thirds of the outstanding loans and other obligations. | ||||||||
Under the terms of the Credit Facility, the Company is required to repay the amount by which the principal balance of its outstanding loans and its letter of credit obligations exceed its redetermined borrowing base. The Company is permitted to make such repayment in six equal successive monthly payments commencing 30 days following the administrative agent’s notice regarding such borrowing base reduction. | ||||||||
On March 28, 2014, the Company entered into a Fifth Amendment to the existing Credit Facility between the Company, as parent, Midstates Sub, as the borrower, SunTrust Bank, as administrative agent, and the other lenders and parties thereto (the “Fifth Amendment”). | ||||||||
The Fifth Amendment amended the Credit Facility to (i) permit Midstates Sub to enter into the $125 million Senior Secured Bridge Facility (“Bridge Facility”) secured by the Company’s Gulf Coast Assets and intended to provide the Company with additional sources of liquidity in the event the sale of the Company’s Pine Prairie assets was delayed for any reason, (ii) affirm the current borrowing base thereunder of $500 million, and (iii) provide for a decrease of the borrowing base to $475 million upon, among other things, the closing of the sale of Midstates Sub’s ownership interest in developed and undeveloped acreage in the Pine Prairie field area of Evangeline Parish, Louisiana for consideration equal to or greater than $100 million (“Pine Prairie Disposition”) or the entry into the Bridge Facility. Additionally, the Fifth Amendment amended certain provisions of the Credit Facility to, among other things, (i) subject to certain events, including the closing of the Pine Prairie Disposition, release Midstates Sub’s Louisiana assets from liens securing the Credit Facility, (ii) increase the applicable margin for LIBOR Loans from a range of 1.75% to 2.75% depending on borrowing base utilization to a range of 2.00% to 3.00%, with corresponding changes to the applicable margin for base rate loans, (iii) amend the leverage ratio to be (A) 4.75:1.00 for the quarter ending March 31, 2014, (B) 4.50:1.00 for the quarter ending June 30, 2014, (C) 4.25:1.00 for the quarters ending September 30, 2014 and December 31, 2014 and (D) 4.00:1.00 for each quarter thereafter; provided that the leverage ratio shall be increased by 0.50 for the quarter of, and the two quarters following, the consummation of the Pine Prairie Disposition and (iv) allow for the Bridge Facility to be secured by a second lien on the Midstates Sub’s Mississippian Lime and Anadarko Basin assets. As consideration for the participating lenders’ consent to the Fifth Amendment, Midstates Sub paid a 0.10% amendment fee on the $475 million borrowing base. | ||||||||
On May 1, 2014, the Company completed the Pine Prairie Disposition and terminated the Bridge Facility commitment. See Note 13. | ||||||||
As of March 31, 2014, the Company was in compliance with the minimum current ratio and the ratio of debt to EBITDA covenants as set forth in the Credit Facility. The Company’s current ratio at March 31, 2014 was 1.0 to 1.0. At March 31, 2014, the Company’s ratio of debt to EBITDA was 4.1 to 1.0. | ||||||||
Based upon the recent amendments to the Credit Facility, the Company believes its carrying amount at March 31, 2014 approximates its fair value (Level 2) due to the variable nature of the applicable interest rate and current financing terms available to the Company. | ||||||||
2020 Senior Notes | ||||||||
On October 1, 2012, the Company issued $600 million in aggregate principal amount of 10.75% senior notes due 2020 (the “2020 Outstanding Notes”) in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). On October 29, 2013, substantially all of the 2020 Outstanding Notes were exchanged for an equal principal amount of registered 10.75% senior subordinated notes due 2020 pursuant to an effective registration statement on Form S-4 filed on August 30, 2013 under the Securities Act (the “2020 Exchange Notes”). The 2020 Exchange Notes are identical to the 2020 Outstanding Notes except that the 2020 Exchange Notes are registered under the Securities Act and do not have restrictions on transfer, registration rights or provisions for additional interest. As used in this Form 10-Q, the term “2020 Senior Notes” refers to both the 2020 Outstanding Notes and the 2020 Exchange Notes. The 2020 Senior Notes were co-issued on a joint and several basis by the Company and its wholly owned subsidiary, Midstates Sub. The Company does not have any operations or independent assets other than its 100% ownership interest in Midstates Sub and there are no other subsidiaries of the Company. The 2020 Senior Notes Indenture does not create any restricted assets within Midstates Sub, nor does it impose any significant restrictions on the ability of Midstates Sub to pay dividends or make loans to the Company or limit the ability of the Company to advance loans to Midstates Sub. | ||||||||
At any time prior to October 1, 2015, the Company may, under certain circumstances, redeem up to 35% of the aggregate principal amount of the 2020 Senior Notes with the net proceeds of a public or private equity offering at a redemption price of 110.75% of the principal amount of the 2020 Senior Notes, plus any accrued and unpaid interest up to the redemption date. In addition, at any time before October 1, 2016, the Company may redeem all or a part of the 2020 Senior Notes at a redemption price equal to 100% of the principal amount of 2020 Senior Notes redeemed plus the Applicable Premium (as defined in the Indenture) at the redemption date, plus any accrued and unpaid interest and Additional Interest (as defined in the Indenture), if any, up to, the redemption date. On or after October 1, 2016, the Company may redeem all or a part of the 2020 Senior Notes at varying redemption prices (expressed as percentages of principal amount) set forth in the Indenture plus accrued and unpaid interest and Additional Interest (as defined in the Indenture), if any, on the 2020 Senior Notes redeemed, up to, the redemption date. | ||||||||
The Indenture contains covenants that, among other things, restrict the Company’s ability to: (i) incur additional indebtedness, guarantee indebtedness or issue certain preferred shares; (ii) make loans, investments and other restricted payments; (iii) pay dividends on or make other distributions in respect of, or repurchase or redeem, capital stock; (iv) create or incur certain liens; (v) sell, transfer or otherwise dispose of certain assets; (vi) enter into certain types of transactions with the Company’s affiliates; (vii) consolidate, merge or sell substantially all of the Company’s assets; (viii) prepay, redeem or repurchase certain debt; (ix) alter the business the Company conducts and (x) enter into agreements restricting the ability of the Company’s current and any future subsidiaries to pay dividends. | ||||||||
Upon the occurrence of certain change of control events, as defined in the Indenture, each holder of the 2020 Senior Notes will have the right to require that the Company repurchase all or a portion of such holder’s 2020 Senior Notes in cash at a purchase price equal to 101% of the aggregate principal amount thereof plus any accrued and unpaid interest to the date of repurchase. | ||||||||
The estimated fair value of the 2020 Senior Notes was $664.5 million as of March 31, 2014 (Level 2 in the fair value measurement hierarchy based on the limited trading volume on the secondary market), based on quoted market prices for these same debt securities. The effective annual interest rate for the 2020 Senior Notes was approximately 11.1% for the three months ended March 31, 2014 and 2013. | ||||||||
2021 Senior Notes | ||||||||
On May 31, 2013, the Company issued $700 million in aggregate principal amount of 9.25% senior notes due 2021 (the “2021 Outstanding Notes”) in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act. On October 29, 2013, all of the 2021 Outstanding Notes were exchanged for an equal principal amount of registered 9.25% senior subordinated notes due 2021 pursuant to an effective registration statement on Form S-4 filed on August 30, 2013 under the Securities Act (the “2021 Exchange Notes”). The 2021 Exchange Notes are identical to the 2021 Outstanding Notes except that the 2021 Exchange Notes are registered under the Securities Act and do not have restrictions on transfer, registration rights or provisions for additional interest. As used in this Form 10-Q, the term “2021 Senior Notes” refers to both the 2021 Outstanding Notes and the 2021 Exchange Notes. The proceeds from the offering of $700 million (net of the initial purchasers’ discount and related offering expenses) were used to fund the Anadarko Basin Acquisition and the related expenses, to pay the expenses related to an amendment to the Company’s revolving credit facility, to repay $34.3 million in outstanding borrowings under the Company’s Credit Facility, and for general corporate purposes. | ||||||||
The 2021 Senior Notes rank pari passu in right of payment with the 2020 Senior Notes. | ||||||||
The 2021 Senior Notes were co-issued on a joint and several basis by the Company and its wholly owned subsidiary, Midstates Sub. The Company does not have any operations or independent assets other than its 100% ownership interest in Midstates Sub and there are no other subsidiaries of the Company. The 2021 Senior Notes indenture does not create any restricted assets within Midstates Sub, nor does it impose any significant restrictions on the ability of Midstates Sub to pay dividends or make loans to the Company or limit the ability of the Company to advance loans to Midstates Sub. | ||||||||
On or prior to May 31, 2014, the Company may redeem up to $100.0 million of aggregate principal amount of the 2021 Senior Notes with the net cash proceeds from any Equity Offerings (as such term is defined in the 2021 Senior Notes Indenture) at a redemption price equal to 103% of the principal amount plus accrued and unpaid interest. | ||||||||
Prior to June 1, 2016, the Company may, under certain circumstances, redeem up to 35% of the aggregate principal amount of the 2021 Senior Notes (less the amount of 2021 Senior Notes redeemed pursuant to the preceding paragraph) with the net proceeds of any Equity Offerings at a redemption price of 109.25% of the principal amount of the 2021 Senior Notes redeemed, plus any accrued and unpaid interest, if any, up to the redemption date. In addition, at any time before June 1, 2016, the Company may redeem all or a part of the 2021 Senior Notes at a redemption price equal to 100% of the principal amount of the 2021 Senior Notes redeemed plus the Applicable Premium (as defined in the Indenture) at the redemption date, plus any accrued and unpaid interest and Additional Interest (as defined in the 2021 Senior Notes Indenture), if any, up to, the redemption date. On or after October 1, 2016, the Company may redeem all or a part of the 2021 Senior Notes at varying redemption prices (expressed as percentages of principal amount) set forth in the 2021 Senior Notes Indenture plus accrued and unpaid interest and Additional Interest (as defined in the 2021 Senior Notes Indenture), if any, on the 2021 Senior Notes redeemed, up to, the redemption date. | ||||||||
The terms of the covenants and change in control provisions in the 2021 Senior Notes Indenture are substantially identical to those of the 2020 Senior Notes discussed above. | ||||||||
The estimated fair value of the 2021 Senior Notes was $733.3 million as of March 31, 2014 (Level 2 in the fair value measurement hierarchy based on the limited trading volume on the secondary market), based on quoted market prices for these same debt securities. The effective annual interest rate for the 2021 Senior Notes was approximately 9.6% for the three months ended March 31, 2014. | ||||||||
Equity_and_ShareBased_Compensa
Equity and Share-Based Compensation | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Equity and Share-Based Compensation | ' | |||||||
Equity and Share-Based Compensation | ' | |||||||
9. Equity and Share-Based Compensation | ||||||||
Common and Preferred Shares | ||||||||
The Company is authorized to issue up to a total of 300,000,000 shares of its common stock with a par value of $0.01 per share, and 50,000,000 shares of its preferred stock with a par value of $0.01 per share. Holders of the Company’s common shares are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders and to receive ratably in proportion to the shares of common stock held by them any dividends declared from time to time by the board of directors. The common shares have no preferences or rights of conversion, exchange, pre-exemption or other subscription rights. | ||||||||
With respect to preferred shares, the Company is authorized, without further stockholder approval, to establish and issue from time to time one or more classes or series of preferred stock with such powers, preferences, rights, qualifications, limitations and restrictions as determined by its board of directors. | ||||||||
Series A Preferred Stock | ||||||||
In connection with the Eagle Property Acquisition, on September 28, 2012, the Company designated 325,000 shares of Series A Mandatorily Convertible Preferred Stock (the “Series A Preferred Stock”) with an initial liquidation preference of $1,000 per share and an 8% per annum dividend, payable semiannually at the Company’s option in cash or through an increase in the liquidation preference. The Series A Preferred Shares are convertible after October 1, 2013, in whole but not in part and at the option of the holders of a majority of the outstanding shares of Series A Preferred Stock, into a number shares of the Company’s common stock calculated by dividing the then-current liquidation preference by the conversion price of $13.50 per share and, if not previously converted, are mandatorily convertible at September 30, 2015 into shares of the Company’s common stock at a conversion price no greater than $13.50 per share and no less than $11.00 per share, with the ultimate conversion price dependent upon the volume weighted average price of the Company’s common stock during the 15 trading days immediately prior to September 30, 2015. The Series A Preferred Stock was issued on October 1, 2012. | ||||||||
On March 30, 2014, the Company elected to pay the $13 million semi-annual dividend due on that date through an increase in the Series A Preferred Stock liquidation preference to $1,125. As a result, the Company will be obligated to issue between 3,005,985 and 3,689,164 additional shares of common stock upon conversion of the Series A Preferred Stock, with the ultimate number of shares dependent upon the conversion price then in effect as described above. | ||||||||
Share Activity | ||||||||
The following table summarizes changes in the number of outstanding shares since December 31, 2013: | ||||||||
Number of Shares | ||||||||
Series A | Common Stock | Treasury Stock | ||||||
Preferred | ||||||||
Stock | ||||||||
Share count as of December 31, 2013 | 325,000 | 68,925,745 | (118,702 | ) | ||||
Grants of restricted stock | — | 2,461,205 | — | |||||
Forfeitures of restricted stock | — | (791,226 | ) | — | ||||
Acquisition of treasury stock | — | — | (135,157 | ) | ||||
Share count as of March 31, 2014 | 325,000 | 70,595,724 | (253,859 | ) | ||||
The Company’s 2012 LTIP (discussed below) allows for the recipients of restricted stock to surrender a portion of their shares upon vesting to satisfy Federal Income Tax (“FIT”) withholding requirements. The Company then remits to the IRS the cash equivalent of the FIT withholding liability. Shares surrendered to the Company in this fashion have been treated as treasury shares acquired at a cost equivalent to the related tax liability. These shares are available for future issuance by the Company. | ||||||||
Incentive Units | ||||||||
At March 31, 2014, 1,179 incentive units were issued and outstanding. These incentive units were issued prior to the Company’s initial public offering. In connection with the corporate reorganization that occurred immediately prior to the Company’s initial public offering, these incentive units held in the Company were contributed to FR Midstates Interholding, LP (“FRMI”) in exchange for incentive units in FRMI. Holders of FRMI incentive units will receive, out of proceeds otherwise distributable to FRMI, a percentage interest in the amounts distributed to FRMI in excess of certain multiples of FRMI’s aggregate capital contributions and investment expenses (“FRMI Profits”). Although any future payments to the incentive unit holders will be made out of the proceeds otherwise distributable to FRMI and not by the Company, the Company will be required to record a non-cash compensation charge in the period any payment is made related to the FRMI incentive units. To date, no compensation expense related to the incentive units has been recognized by the Company, as any payout under the incentive units is not considered probable, and thus, the amount of FRMI Profits, if any, cannot be determined. | ||||||||
Share-based Compensation, Post-Initial Public Offering | ||||||||
2012 Long Term Incentive Plan | ||||||||
On April 20, 2012, the Company established the 2012 Long Term Incentive Plan (the “2012 LTIP”) and filed a Form S-8 with the SEC, registering 6,563,435 shares of common stock for future issuance under the terms of the 2012 LTIP. The 2012 LTIP provides a means for the Company to attract and retain employees, directors and consultants, and a method whereby employees, directors and consultants of the Company who contribute to its success can acquire and maintain stock ownership or awards, the value of which is tied to the performance of the Company, thereby strengthening their concern for the welfare of the Company and their desire to remain employed. | ||||||||
The 2012 LTIP provides for the granting of Options (Incentive and other), Restricted Stock Awards, Restricted Stock Units, Stock Appreciation Rights, Dividend Equivalents, Bonus Stock, Other Stock-Based Awards, Annual Incentive Awards, Performance Awards, or any combination of the foregoing (the “Awards”). Subject to certain limitations as defined in the 2012 LTIP, the terms of each Award are as determined by the Compensation Committee of the Board of Directors. A total of 6,563,435 common share Awards are authorized for issuance under the 2012 LTIP and shares of stock subject to an Award that expire, or are canceled, forfeited, exchanged, settled in cash or otherwise terminated, will again be available for future Awards under the 2012 LTIP. | ||||||||
Non-vested Stock Awards | ||||||||
Subsequent to the completion of the Company’s initial public offering and pursuant to the 2012 LTIP, through March 31, 2014, the Company had 4,019,225 non-vested shares of restricted common stock to directors, management and employees outstanding. Shares granted under the LTIP generally vest ratably over a period of three years (one-third on each anniversary of the grant); however, beginning in 2013, shares granted under the 2012 LTIP to directors are subject to one-year cliff vesting. | ||||||||
The fair value of restricted stock grants is based on the value of the Company’s common stock on the date of grant. Compensation expense is recognized ratably over the requisite service period. | ||||||||
The following table summarizes the Company’s non-vested share award activity for the three months ended March 31, 2014: | ||||||||
Shares | Weighted | |||||||
Average Grant | ||||||||
Date Fair Value | ||||||||
Non-vested shares outstanding at December 31, 2013 | 2,963,672 | $ | 7.78 | |||||
Granted | 2,461,205 | $ | 4.66 | |||||
Vested | (614,426 | ) | $ | 7.42 | ||||
Forfeited | (791,226 | ) | $ | 7.92 | ||||
Non-vested shares outstanding at March 31, 2014 | 4,019,225 | $ | 5.89 | |||||
Unrecognized expense, adjusted for estimated forfeitures, as of March 31, 2014 for all outstanding restricted stock awards was $18.9 million and will be recognized over a weighted average period of 2.4 years. | ||||||||
At March 31, 2014, 1,602,064 shares remain available for issuance under the terms of the 2012 LTIP. | ||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
10. Income Taxes | |
Prior to its corporate reorganization (See Note 1), the Company was a limited liability company and not subject to federal income tax or state income tax (in most states). Accordingly, no provision for federal or state income taxes was recorded prior to the corporate reorganization as the Company’s equity holders were responsible for income tax on the Company’s profits. In connection with the closing of the Company’s initial public offering, the Company merged into a corporation and became subject to federal and state income taxes. | |
For the three months ended March 31, 2014, the Company’s effective tax rate was a benefit of approximately 2.6%. The Company’s effective tax rate for the first quarter of 2014 differs from the federal statutory rate of 35% due to state income taxes and the recording of $29.7 million in additional valuation allowance in light of the impairment of oil and gas properties, for a total valuation allowance of $75.4 million at March 31, 2014. | |
The Company expects to incur a tax loss in the current year (due principally to the estimated loss on sale of the Pine Prairie properties and the flexibility in deducting or expensing current year intangible drilling costs) and thus no current income taxes are anticipated to be paid. This tax loss is expected to result in additional net operating loss (NOL) carryforwards at year-end; however, a valuation allowance has been recorded as management does not believe that it is more-likely-than-not that the NOLs are realizable except to the extent of future taxable income primarily related to the excess of book carrying value of properties over their respective tax bases. No other sources of future taxable income are considered in this judgment. | |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Earnings (Loss) Per Share | ' | |||||||||||||
Earnings (Loss) Per Share | ' | |||||||||||||
11. Earnings (Loss) Per Share | ||||||||||||||
The Company’s Series A Preferred Stock has the nonforfeitable right to participate on an as converted basis at the conversion rate then in effect in any common stock dividends declared and as such, is considered a participating security. The Company’s nonvested stock awards, which are granted as part of the 2012 LTIP, contain nonforfeitable rights to dividends and as such, are considered to be participating securities and, together with the Series A Preferred Stock, are included in the computation of basic and diluted earnings (loss) per share, pursuant to the two-class method. In the calculation of basic earnings (loss) per share attributable to common shareholders, participating securities are allocated earnings based on actual dividend distributions received plus a proportionate share of undistributed net income attributable to common shareholders, if any, after recognizing distributed earnings. The Company’s participating securities do not participate in undistributed net losses because they are not contractually obligated to do so. | ||||||||||||||
The computation of diluted earnings per share attributable to common shareholders reflects the potential dilution that could occur if securities or other contracts to issue common shares that are dilutive were exercised or converted into common shares (or resulted in the issuance of common shares) and would then share in the earnings of the Company. During the periods in which the Company records a loss from continuing operations attributable to common shareholders, securities would not be dilutive to net loss per share and conversion into common shares is assumed to not occur. Diluted net income per share attributable to common shareholders is calculated under both the two-class method and the treasury stock method; the more dilutive of the two calculations is presented below. | ||||||||||||||
The following table (in thousands, except per share amounts) provides a reconciliation of net losses to preferred shareholders, common shareholders, and non-vested restricted shareholders for purposes of computing net loss per share for the three months ended March 31, 2014: | ||||||||||||||
Total | Series A | Common | Non-vested | |||||||||||
Preferred | Stock | Restricted | ||||||||||||
Stock | Stock (2) | |||||||||||||
Net loss | $ | (83,645 | ) | $ | — | $ | (83,645 | ) | $ | — | ||||
Preferred Dividend (1) | (2,620 | ) | — | (2,620 | ) | — | ||||||||
Calculated allocation of net income attributable to shareholders | $ | (86,265 | ) | $ | — | $ | (86,265 | ) | $ | — | ||||
Weighted average shares outstanding | 65,987 | |||||||||||||
Net loss per share | $ | (1.31 | ) | |||||||||||
(1) Calculation of the preferred stock dividend is discussed in Note 9. | ||||||||||||||
(2) As these shares are participating securities that participate in earnings, but are not required to participate in losses, this calculation demonstrates that there is not an allocation of the loss to the non-vested restricted stockholders. | ||||||||||||||
The following table (in thousands, except per share amounts) provides a reconciliation of net losses to preferred shareholders, common shareholders, and non-vested restricted shareholders for purposes of computing net loss per share for the three months ended March 31, 2013: | ||||||||||||||
Total | Series A | Common | Non-vested | |||||||||||
Preferred | Stock | Restricted | ||||||||||||
Stock | Stock (2) | |||||||||||||
Net loss | $ | (7,949 | ) | $ | — | $ | (7,949 | ) | $ | — | ||||
Preferred Dividend (1) | (4,117 | ) | — | (4,117 | ) | — | ||||||||
Calculated allocation of net loss attributable to shareholders | $ | (12,066 | ) | $ | — | $ | (12,066 | ) | $ | — | ||||
Weighted average shares outstanding | 65,634 | |||||||||||||
Net loss per share | $ | (0.18 | ) | |||||||||||
(1) Calculation of the preferred stock dividend is discussed in Note 9. | ||||||||||||||
(2) As these shares are participating securities that participate in earnings, but are not required to participate in losses, this calculation demonstrates that there is not an allocation of the loss to the non-vested restricted stockholders. | ||||||||||||||
The aggregate number of common shares outstanding at March 31, 2014 was 70,341,865 of which 4,019,225 were non-vested restricted shares. The aggregate number of shares of Series A Preferred Stock outstanding at March 31, 2014 was 325,000, each with a liquidation preference of $1,125 representing on an as-converted basis approximately 33,234,618 million common shares based upon a conversion price of $11.00 per share, which have been excluded from the weighted average shares outstanding for EPS purposes for the three months ended March 31, 2014 due to their anti-dilutive effect. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
12. Commitments and Contingencies | |||||||||||||||||
Contractual Obligations | |||||||||||||||||
At March 31, 2014, contractual obligations for drilling contracts, long-term operating leases and seismic contracts are as follows (in thousands): | |||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 and | |||||||||||||
beyond | |||||||||||||||||
Drilling contracts | $ | 15,061 | $ | 14,692 | $ | 369 | $ | — | $ | — | |||||||
Non-cancellable office lease commitments | $ | 10,654 | 1,332 | 1,857 | 1,877 | 5,588 | |||||||||||
Seismic contracts | $ | 4,410 | 4,410 | — | — | — | |||||||||||
Net minimum commitments | $ | 30,125 | $ | 20,434 | $ | 2,226 | $ | 1,877 | $ | 5,588 | |||||||
For the three months ended March 31, 2014 and 2013, the Company expensed $0.5 million and $0.4 million, respectively, for office rent. | |||||||||||||||||
In addition to the commitments noted in the above table, the Company is party to a gas transportation, gathering and processing contract (as amended and effective June 1, 2013) in the Mississippian Lime region, which includes certain minimum natural gas and NGL volume commitments. To the extent the Company does not deliver natural gas volumes in sufficient quantities to generate, when processed, the minimum levels of recovered NGLs, the Company would be required to reimburse the counterparty an amount equal to the sum of the monthly shortfall, if any, multiplied by a fee of roughly $0.06 to $0.125 per gallon (subject to annual escalation). The NGL volume commitments range from 2,800 Bbls to 5,460 Bbls per day over the remaining term of the contract. Additionally, the Company is obligated to deliver a total of 38,100,000 MMBtus and 76,200,000 MMBtus during the first 30 months and 60 months of the contract, respectively. During the first 30 months, any shortfall in delivered volumes would result in a payment to the counterparty equal to the shortfall amount multiplied by a fee of approximately $0.36 per MMBtu. During the first 60 months, any shortfall in delivered volumes would result in a payment to the counterparty equal to the shortfall amount multiplied by a fee of approximately $0.36 per MMBtu, provided that the Company would receive volumetric credit for any deficiency payment made after the initial 30 months. The Company is currently delivering at least the minimum volumes required under these contractual provisions and does not expect to incur any future volumetric shortfall payments during the term of this contract. | |||||||||||||||||
Commitments related to AROs are not included in the table above. | |||||||||||||||||
Litigation | |||||||||||||||||
We are involved in disputes or legal actions arising in the ordinary course of our business. We may not be able to predict the timing or outcome of these or future claims and proceedings with certainty, and an unfavorable resolution of one or more of such matters could have a material adverse effect on our financial condition, results of operations or cash flows. Currently, we are not party to any legal proceedings that, individually or in the aggregate, are reasonably expected to have a material adverse effect on our financial position, results of operations, or cash flows. | |||||||||||||||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
13. Subsequent Events | |
On May 1, 2014, the Company closed on the sale of all of its ownership interest in developed and undeveloped acreage in the Pine Prairie field area of Evangeline Parish, Louisiana to a private buyer for a purchase price of $170 million in cash, ($147.5 million after standard post-closing adjustments and the assumption by the buyer of certain liabilities associated with the assets). The Company used $131.0 million of the proceeds to reduce amounts outstanding under the revolving credit facility, with the remainder retained for transaction expenses and working capital purposes. | |
Concurrent with the closing of the Pine Prairie Disposition, the Company also terminated the commitment to provide the Bridge Facility that was entered into on March 9, 2014 with SunTrust Bank, SunTrust Robinson Humphrey, Inc., Morgan Stanley Senior Funding, Inc., Bank of America N.A., Goldman Sachs Bank USA, Merrill Lynch, Piece, Fenner & Smith Incorporated, Natixis New York Branch and Royal Bank of Canada and paid commitment fees and expenses of $2.3 million pursuant to the terms of the commitment letter. | |
With the completion of the Pine Prairie Disposition and pursuant to the Fifth Amendment, the borrowing base under the Company’s Credit Facility was reduced to $475 million and the leverage ratio covenant thereunder was amended to be (i) 5:00:1.00 for the quarter ending June 30, 2014, and (ii) 4.75:1.00 for the quarters ending September 30, 2014 and December 31, 2014. The leverage ratio decreases to 4.00:1.00 for each quarter thereafter. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Summary of Significant Accounting Policies | ' |
Basis of Presentation | ' |
Basis of Presentation | |
These interim financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain disclosures have been condensed or omitted from these financial statements. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements, and should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K as filed with the SEC on March 24, 2014. | |
All intercompany transactions have been eliminated in consolidation. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary to fairly present the financial position as of, and the results of operations for, all periods presented. In preparing the accompanying condensed consolidated financial statements, management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
The Company reviewed recently issued accounting pronouncements that became effective during the three months ended March 31, 2014, and determined that none would have a material impact on the Company’s condensed consolidated financial statements. | |
Fair_Value_Measurements_of_Fin1
Fair Value Measurements of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Fair Value Measurements of Financial Instruments | ' | |||||||||||||
Schedule of commodity derivative contracts in the condensed consolidated balance sheets are recorded at estimated fair value | ' | |||||||||||||
Fair Value Measurements at March 31, 2014 | ||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||
Active Markets | Other | Unobservable | ||||||||||||
(Level 1) | Observable | Inputs | ||||||||||||
Inputs | (Level 3) | |||||||||||||
(Level 2) | ||||||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Commodity derivative NGL swaps | $ | — | $ | 391 | $ | — | $ | 391 | ||||||
Commodity derivative gas swaps | — | 827 | — | 827 | ||||||||||
Commodity derivative oil collars | — | 4 | — | 4 | ||||||||||
Commodity derivative gas collars | — | 261 | — | 261 | ||||||||||
Commodity derivative differential swaps | — | 746 | — | 746 | ||||||||||
Total assets | $ | — | $ | 2,229 | $ | — | $ | 2,229 | ||||||
Liabilities: | ||||||||||||||
Commodity derivative oil swaps | $ | — | $ | 35,022 | $ | — | $ | 35,022 | ||||||
Commodity derivative NGL swaps | — | 75 | — | 75 | ||||||||||
Commodity derivative gas swaps | — | 5,391 | — | 5,391 | ||||||||||
Commodity derivative oil collars | — | 352 | — | 352 | ||||||||||
Commodity derivative gas collars | — | 64 | — | 64 | ||||||||||
Total liabilities | $ | — | $ | 40,904 | $ | — | $ | 40,904 | ||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||
Active Markets | Other | Unobservable | ||||||||||||
(Level 1) | Observable | Inputs | ||||||||||||
Inputs | (Level 3) | |||||||||||||
(Level 2) | ||||||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Commodity derivative NGL swaps | $ | — | $ | 469 | $ | — | $ | 469 | ||||||
Commodity derivative gas swaps | — | 488 | — | 488 | ||||||||||
Commodity derivative oil collars | — | 64 | — | 64 | ||||||||||
Commodity derivative gas collars | — | 751 | — | 751 | ||||||||||
Commodity derivative differential swaps | — | 806 | — | 806 | ||||||||||
Total assets | $ | — | $ | 2,578 | $ | — | $ | 2,578 | ||||||
Liabilities: | ||||||||||||||
Commodity derivative oil swaps | $ | — | $ | 32,209 | $ | — | $ | 32,209 | ||||||
Commodity derivative NGL swaps | — | 74 | — | 74 | ||||||||||
Commodity derivative gas swaps | — | 809 | — | 809 | ||||||||||
Commodity derivative oil collars | — | 272 | — | 272 | ||||||||||
Commodity derivative gas collars | — | 26 | — | 26 | ||||||||||
Total liabilities | $ | — | $ | 33,390 | $ | — | $ | 33,390 | ||||||
Risk_Management_and_Derivative1
Risk Management and Derivative Instruments (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Risk Management and Derivative Instruments | ' | ||||||||||||
Schedule of the entity's open commodity derivative contract positions | ' | ||||||||||||
As of March 31, 2014, the Company had the following open commodity derivative contract positions: | |||||||||||||
Hedged | Weighted-Average | ||||||||||||
Volume | Fixed Price | ||||||||||||
Oil (Bbls): | |||||||||||||
WTI Swaps — 2014 | 3,274,950 | $ | 88.85 | ||||||||||
WTI Swaps — 2015 | 1,820,000 | $ | 86.55 | ||||||||||
WTI Collars — 2014 | 123,000 | $ | 88.27 | - | $ | 97.91 | |||||||
WTI to LLS Basis Differential Swaps — 2014 (1) | 366,000 | $ | 5.35 | ||||||||||
NGL (Bbls): | |||||||||||||
NGL Swaps — 2014 | 81,000 | $ | 61.86 | ||||||||||
Natural Gas (MMBtu): | |||||||||||||
Swaps — 2014 (2) | 13,475,000 | $ | 4.17 | ||||||||||
Swaps — 2015 | 18,250,000 | $ | 4.13 | ||||||||||
Collars — 2014 (3) | 1,188,003 | $ | 3.96 | - | $ | 5.06 | |||||||
(1) The Company enters into swap arrangements intended to fix the differential between the Louisiana Light Sweet (“LLS”) pricing and the West Texas Intermediate (“NYMEX WTI”) pricing. | |||||||||||||
(2) Includes 1,470,000 MMBtus in natural gas swaps that priced during the period, but had not cash settled as of March 31, 2014. | |||||||||||||
(3) Includes 64,667 MMBtus that priced during the period, but had not cash settled as of March 31, 2014. | |||||||||||||
Summary of location and fair values amounts of all derivative instruments as well as the gross recognized derivative assets, liabilities and amounts offset in the unaudited condensed consolidated balance sheets | ' | ||||||||||||
The following table summarizes the gross fair values of derivative instruments by the appropriate balance sheet classification, even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the Company’s unaudited condensed consolidated balance sheets at March 31, 2014 and December 31, 2013, respectively (in thousands): | |||||||||||||
Type | Balance Sheet Location (1) | March 31, 2014 | December 31, 2013 | ||||||||||
Oil Swaps | Derivative financial instruments — Current Liabilities | $ | (32,667 | ) | $ | (28,871 | ) | ||||||
Oil Swaps | Derivative financial instruments — Non-Current Liabilities | (2,355 | ) | (3,338 | ) | ||||||||
NGL Swaps | Derivative financial instruments — Current Assets | 391 | 469 | ||||||||||
NGL Swaps | Derivative financial instruments — Current Liabilities | (75 | ) | (74 | ) | ||||||||
Gas Swaps | Derivative financial instruments — Current Assets | — | 469 | ||||||||||
Gas Swaps | Derivative financial instruments — Non-Current Assets | 827 | 19 | ||||||||||
Gas Swaps | Derivative financial instruments — Current Liabilities | (5,391 | ) | (496 | ) | ||||||||
Gas Swaps | Derivative financial instruments — Non-Current Liabilities | — | (313 | ) | |||||||||
Oil Collars | Derivative financial instruments — Current Assets | 4 | 64 | ||||||||||
Oil Collars | Derivative financial instruments — Current Liabilities | (352 | ) | (272 | ) | ||||||||
Gas Collars | Derivative financial instruments — Current Assets | 261 | 751 | ||||||||||
Gas Collars | Derivative financial instruments — Current Liabilities | (64 | ) | (26 | ) | ||||||||
Basis Differential Swaps | Derivative financial instruments — Current Assets | 746 | 806 | ||||||||||
Total derivative fair value at period end | $ | (38,675 | ) | $ | (30,812 | ) | |||||||
(1) The fair values of commodity derivative instruments reported in the Company’s condensed consolidated balance sheets are subject to netting arrangements and qualify for net presentation. The following table summarizes the location and fair value amounts of all derivative instruments in the unaudited condensed consolidated balance sheets, as well as the gross recognized derivative assets, liabilities and amounts offset in the unaudited condensed consolidated balance sheets at March 31, 2014 and December 31, 2013, respectively (in thousands): | |||||||||||||
March 31, 2014 | |||||||||||||
Not Designated as ASC | Balance Sheet Classification | Gross Recognized | Gross Amounts | Net Recognized Fair | |||||||||
815 Hedges: | Assets/ | Offset | Value Assets/ | ||||||||||
Liabilities | Liabilities | ||||||||||||
Derivative assets: | |||||||||||||
Commodity contracts | Derivative financial instruments - current | $ | 1,402 | $ | 1,402 | $ | — | ||||||
Commodity contracts | Derivative financial instruments - noncurrent | 827 | — | 827 | |||||||||
$ | 2,229 | $ | 1,402 | $ | 827 | ||||||||
Derivative liabilities: | |||||||||||||
Commodity contracts | Derivative financial instruments - current | $ | 38,549 | $ | 1,402 | $ | 37,147 | ||||||
Commodity contracts | Derivative financial instruments - noncurrent | 2,355 | — | 2,355 | |||||||||
$ | 40,904 | $ | 1,402 | $ | 39,502 | ||||||||
December 31, 2013 | |||||||||||||
Not Designated as ASC | Balance Sheet Classification | Gross Recognized | Gross Amounts | Net Recognized Fair | |||||||||
815 Hedges: | Assets/ | Offset | Value Assets/ | ||||||||||
Liabilities | Liabilities | ||||||||||||
Derivative assets: | |||||||||||||
Commodity contracts | Derivative financial instruments - current | $ | 2,559 | $ | 1,859 | $ | 700 | ||||||
Commodity contracts | Derivative financial instruments - noncurrent | 19 | — | 19 | |||||||||
$ | 2,578 | $ | 1,859 | $ | 719 | ||||||||
Derivative liabilities: | |||||||||||||
Commodity contracts | Derivative financial instruments - current | $ | 29,739 | $ | 1,859 | $ | 27,880 | ||||||
Commodity contracts | Derivative financial instruments - noncurrent | 3,651 | — | 3,651 | |||||||||
$ | 33,390 | $ | 1,859 | $ | 31,531 | ||||||||
Schedule of net losses and unrealized net (losses) gains recorded by the Company related to the change in fair value of the derivative instruments in losses on commodity derivative contracts - net for the periods | ' | ||||||||||||
For the Three Months | |||||||||||||
Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Realized net losses | $ | (14,810 | ) | $ | (5,004 | ) | |||||||
Unrealized net losses | (7,863 | ) | (15,120 | ) | |||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property and Equipment | ' | |||||||
Schedule of property and equipment | ' | |||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Oil and gas properties, on the basis of full cost accounting: | ||||||||
Proved properties | $ | 3,017,064 | $ | 2,817,062 | ||||
Unevaluated properties | 185,635 | 243,599 | ||||||
Other property and equipment | 11,782 | 11,113 | ||||||
Less accumulated depreciation, depletion, amortization and impairment | (1,130,248 | ) | (976,880 | ) | ||||
Net property and equipment | $ | 2,084,233 | $ | 2,094,894 | ||||
Schedule of depletion expense related to oil and gas properties | ' | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Depletion expense (in thousands) | $ | 66,204 | $ | 41,589 | ||||
Depletion expense (per Boe) | $ | 25.37 | $ | 28.51 | ||||
Schedule of adjusted allocation | ' | |||||||
The following table reflects the adjusted allocation as of March 31, 2014 (in thousands): | ||||||||
Anadarko Basin Acquisition | ||||||||
Oil and gas properties | ||||||||
Proved | $ | 417,898 | ||||||
Unevaluated | 207,683 | |||||||
Total assets acquired | $ | 625,581 | ||||||
Asset retirement obligations | 6,296 | |||||||
Total liabilities assumed | $ | 6,296 | ||||||
Net assets acquired | $ | 619,285 | ||||||
Schedule of unaudited pro forma information of the Anadarko Basin Acquisition | ' | |||||||
The following table presents unaudited pro forma information for the Company as if the Anadarko Basin Acquisition occurred on January 1, 2013 (in thousands, other than per share amounts): | ||||||||
For the Three Months | ||||||||
Ended March 31, | ||||||||
2013 | ||||||||
Revenues and other | $ | 112,861 | ||||||
Net loss | (11,524 | ) | ||||||
Preferred stock dividends | (4,117 | ) | ||||||
Loss attributable to common shareholders | $ | (15,641 | ) | |||||
Net loss per common share - basic and diluted | $ | (0.24 | ) | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Long-Term Debt | ' | |||||||
Schedule of the company's long term debt | ' | |||||||
The Company’s long-term debt as of March 31, 2014 and December 31, 2013 is as follows (in thousands): | ||||||||
At March 31, 2014 | At December 31, 2013 | |||||||
(in thousands) | ||||||||
Revolving credit facility, due 2018 | $ | 401,150 | $ | 401,150 | ||||
Senior notes, due 2020 | 600,000 | 600,000 | ||||||
Senior notes, due 2021 | 700,000 | 700,000 | ||||||
Long-term debt | $ | 1,701,150 | $ | 1,701,150 | ||||
Equity_and_ShareBased_Compensa1
Equity and Share-Based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Equity and Share-Based Compensation | ' | |||||||
Summary of changes in the number of outstanding shares | ' | |||||||
Number of Shares | ||||||||
Series A | Common Stock | Treasury Stock | ||||||
Preferred | ||||||||
Stock | ||||||||
Share count as of December 31, 2013 | 325,000 | 68,925,745 | (118,702 | ) | ||||
Grants of restricted stock | — | 2,461,205 | — | |||||
Forfeitures of restricted stock | — | (791,226 | ) | — | ||||
Acquisition of treasury stock | — | — | (135,157 | ) | ||||
Share count as of March 31, 2014 | 325,000 | 70,595,724 | (253,859 | ) | ||||
Summary of Company's non-vested share award activity | ' | |||||||
Shares | Weighted | |||||||
Average Grant | ||||||||
Date Fair Value | ||||||||
Non-vested shares outstanding at December 31, 2013 | 2,963,672 | $ | 7.78 | |||||
Granted | 2,461,205 | $ | 4.66 | |||||
Vested | (614,426 | ) | $ | 7.42 | ||||
Forfeited | (791,226 | ) | $ | 7.92 | ||||
Non-vested shares outstanding at March 31, 2014 | 4,019,225 | $ | 5.89 | |||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Earnings (Loss) Per Share | ' | |||||||||||||
Schedule of reconciliation of net losses to preferred shareholders, common shareholders, and non-vested restricted shareholders for purposes of computing net loss per share | ' | |||||||||||||
The following table (in thousands, except per share amounts) provides a reconciliation of net losses to preferred shareholders, common shareholders, and non-vested restricted shareholders for purposes of computing net loss per share for the three months ended March 31, 2014: | ||||||||||||||
Total | Series A | Common | Non-vested | |||||||||||
Preferred | Stock | Restricted | ||||||||||||
Stock | Stock (2) | |||||||||||||
Net loss | $ | (83,645 | ) | $ | — | $ | (83,645 | ) | $ | — | ||||
Preferred Dividend (1) | (2,620 | ) | — | (2,620 | ) | — | ||||||||
Calculated allocation of net income attributable to shareholders | $ | (86,265 | ) | $ | — | $ | (86,265 | ) | $ | — | ||||
Weighted average shares outstanding | 65,987 | |||||||||||||
Net loss per share | $ | (1.31 | ) | |||||||||||
(1) Calculation of the preferred stock dividend is discussed in Note 9. | ||||||||||||||
(2) As these shares are participating securities that participate in earnings, but are not required to participate in losses, this calculation demonstrates that there is not an allocation of the loss to the non-vested restricted stockholders. | ||||||||||||||
The following table (in thousands, except per share amounts) provides a reconciliation of net losses to preferred shareholders, common shareholders, and non-vested restricted shareholders for purposes of computing net loss per share for the three months ended March 31, 2013: | ||||||||||||||
Total | Series A | Common | Non-vested | |||||||||||
Preferred | Stock | Restricted | ||||||||||||
Stock | Stock (2) | |||||||||||||
Net loss | $ | (7,949 | ) | $ | — | $ | (7,949 | ) | $ | — | ||||
Preferred Dividend (1) | (4,117 | ) | — | (4,117 | ) | — | ||||||||
Calculated allocation of net loss attributable to shareholders | $ | (12,066 | ) | $ | — | $ | (12,066 | ) | $ | — | ||||
Weighted average shares outstanding | 65,634 | |||||||||||||
Net loss per share | $ | (0.18 | ) | |||||||||||
(1) Calculation of the preferred stock dividend is discussed in Note 9. | ||||||||||||||
(2) As these shares are participating securities that participate in earnings, but are not required to participate in losses, this calculation demonstrates that there is not an allocation of the loss to the non-vested restricted stockholders. | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
Schedule of contractual obligations for drilling contracts, long-term operating leases and seismic contracts | ' | ||||||||||||||||
At March 31, 2014, contractual obligations for drilling contracts, long-term operating leases and seismic contracts are as follows (in thousands): | |||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 and | |||||||||||||
beyond | |||||||||||||||||
Drilling contracts | $ | 15,061 | $ | 14,692 | $ | 369 | $ | — | $ | — | |||||||
Non-cancellable office lease commitments | $ | 10,654 | 1,332 | 1,857 | 1,877 | 5,588 | |||||||||||
Seismic contracts | $ | 4,410 | 4,410 | — | — | — | |||||||||||
Net minimum commitments | $ | 30,125 | $ | 20,434 | $ | 2,226 | $ | 1,877 | $ | 5,588 | |||||||
Organization_and_Business_Deta
Organization and Business (Details) (USD $) | 3 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 05, 2014 | Oct. 02, 2012 | 31-May-13 | 31-May-13 |
item | Pine Prairie field area of Evangeline Parish, Louisiana | 10.75% senior unsecured notes | 9.25% senior unsecured notes | Anadarko Basin Acquisition | |
9.25% senior unsecured notes | |||||
Panther Energy Company, LLC and its partners | |||||
Acquisition information | ' | ' | ' | ' | ' |
Purchase price, cash | ' | ' | ' | ' | $618 |
Aggregate principal amount borrowed | ' | ' | 600 | 700 | 700 |
Interest rate (as a percent) | ' | ' | 10.75% | 9.25% | 9.25% |
Purchase price of subject to standard post-closing adjustments received in cash | ' | $170 | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Number of reportable segments | 1 | ' | ' | ' | ' |
Fair_Value_Measurements_of_Fin2
Fair Value Measurements of Financial Instruments (Details) (Recurring, Commodity Derivatives, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | item | item |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value Measurements of Financial Instruments | ' | ' |
Number of bank counterparties for company's commodity derivative contracts | 7 | 7 |
Assets: | ' | ' |
Total assets | $2,229 | $2,578 |
Liabilities: | ' | ' |
Total liabilities | 40,904 | 33,390 |
Significant Other Observable Inputs (Level 2) | Swaps | NGL | ' | ' |
Assets: | ' | ' |
Total assets | 391 | 469 |
Liabilities: | ' | ' |
Total liabilities | 75 | 74 |
Significant Other Observable Inputs (Level 2) | Swaps | Gas | ' | ' |
Assets: | ' | ' |
Total assets | 827 | 488 |
Liabilities: | ' | ' |
Total liabilities | 5,391 | 809 |
Significant Other Observable Inputs (Level 2) | Swaps | Oil | ' | ' |
Liabilities: | ' | ' |
Total liabilities | 35,022 | 32,209 |
Significant Other Observable Inputs (Level 2) | Collars | Gas | ' | ' |
Assets: | ' | ' |
Total assets | 261 | 751 |
Liabilities: | ' | ' |
Total liabilities | 64 | 26 |
Significant Other Observable Inputs (Level 2) | Collars | Oil | ' | ' |
Assets: | ' | ' |
Total assets | 4 | 64 |
Liabilities: | ' | ' |
Total liabilities | 352 | 272 |
Significant Other Observable Inputs (Level 2) | Basis Differential Swaps | ' | ' |
Assets: | ' | ' |
Total assets | 746 | 806 |
Total | ' | ' |
Assets: | ' | ' |
Total assets | 2,229 | 2,578 |
Liabilities: | ' | ' |
Total liabilities | 40,904 | 33,390 |
Total | Swaps | NGL | ' | ' |
Assets: | ' | ' |
Total assets | 391 | 469 |
Liabilities: | ' | ' |
Total liabilities | 75 | 74 |
Total | Swaps | Gas | ' | ' |
Assets: | ' | ' |
Total assets | 827 | 488 |
Liabilities: | ' | ' |
Total liabilities | 5,391 | 809 |
Total | Swaps | Oil | ' | ' |
Liabilities: | ' | ' |
Total liabilities | 35,022 | 32,209 |
Total | Collars | Gas | ' | ' |
Assets: | ' | ' |
Total assets | 261 | 751 |
Liabilities: | ' | ' |
Total liabilities | 64 | 26 |
Total | Collars | Oil | ' | ' |
Assets: | ' | ' |
Total assets | 4 | 64 |
Liabilities: | ' | ' |
Total liabilities | 352 | 272 |
Total | Basis Differential Swaps | ' | ' |
Assets: | ' | ' |
Total assets | $746 | $806 |
Risk_Management_and_Derivative2
Risk Management and Derivative Instruments (Details) (Not designated as Hedging Instrument, Commodity Derivatives, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
bbl | |
Risk Management and Derivative Instruments | ' |
Maximum loss exposure under commodity derivative contracts on failure of the entity's counterparty's performance | $0.80 |
Oil | WTI | Swaps | 2014 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 3,274,950 |
Weighted-Average Fixed Price | 88.85 |
Oil | WTI | Swaps | 2015 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 1,820,000 |
Weighted-Average Fixed Price | 86.55 |
Oil | WTI | Collars | 2014 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 123,000 |
Oil | WTI | Collars | 2014 | Minimum | ' |
Risk Management and Derivative Instruments | ' |
Weighted-Average Fixed Price | 88.27 |
Oil | WTI | Collars | 2014 | Maximum | ' |
Risk Management and Derivative Instruments | ' |
Weighted-Average Fixed Price | 97.91 |
Oil | WTI to LLS | Basis Differential Swaps | 2014 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 366,000 |
Weighted-Average Fixed Price | 5.35 |
NGL | Swaps | 2014 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 81,000 |
Weighted-Average Fixed Price | 61.86 |
Natural Gas | Swaps | 2014 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 13,475,000 |
Weighted-Average Fixed Price | 4.17 |
Hedged Volume, not settled in cash | 1,470,000 |
Natural Gas | Swaps | 2015 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 18,250,000 |
Weighted-Average Fixed Price | 4.13 |
Natural Gas | Collars | 2014 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 1,188,003 |
Hedged Volume, not settled in cash | 64,667 |
Natural Gas | Collars | 2014 | Minimum | ' |
Risk Management and Derivative Instruments | ' |
Weighted-Average Fixed Price | 3.96 |
Natural Gas | Collars | 2014 | Maximum | ' |
Risk Management and Derivative Instruments | ' |
Weighted-Average Fixed Price | 5.06 |
Risk_Management_and_Derivative3
Risk Management and Derivative Instruments (Details 2) (Not designated as Hedging Instrument, Commodity Derivatives, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Risk Management and Derivative Instruments | ' | ' |
Total derivative fair value | ($38,675) | ($30,812) |
Derivative assets: | ' | ' |
Gross Recognized Assets | 2,229 | 2,578 |
Gross Amounts Offset, Assets | 1,402 | 1,859 |
Net Recognized Fair Value Assets | 827 | 719 |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | 40,904 | 33,390 |
Gross Amounts Offset, Liabilities | 1,402 | 1,859 |
Net Recognized Fair Value Liabilities | 39,502 | 31,531 |
Current Assets | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 1,402 | 2,559 |
Gross Amounts Offset, Assets | 1,402 | 1,859 |
Net Recognized Fair Value Assets | ' | 700 |
Non-Current Assets | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 827 | 19 |
Net Recognized Fair Value Assets | 827 | 19 |
Current Liabilities | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | 38,549 | 29,739 |
Gross Amounts Offset, Liabilities | 1,402 | 1,859 |
Net Recognized Fair Value Liabilities | 37,147 | 27,880 |
Non-Current Liabilities | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | 2,355 | 3,651 |
Net Recognized Fair Value Liabilities | 2,355 | 3,651 |
Swaps | Current Assets | NGL | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 391 | 469 |
Swaps | Current Assets | Gas | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | ' | 469 |
Swaps | Non-Current Assets | Gas | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 827 | 19 |
Swaps | Current Liabilities | Oil | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | -32,667 | -28,871 |
Swaps | Current Liabilities | NGL | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | -75 | -74 |
Swaps | Current Liabilities | Gas | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | -5,391 | -496 |
Swaps | Non-Current Liabilities | Oil | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | -2,355 | -3,338 |
Swaps | Non-Current Liabilities | Gas | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | ' | -313 |
Collars | Current Assets | Oil | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 4 | 64 |
Collars | Current Assets | Gas | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 261 | 751 |
Collars | Current Liabilities | Oil | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | -352 | -272 |
Collars | Current Liabilities | Gas | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | -64 | -26 |
Basis Differential Swaps | Current Assets | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | $746 | $806 |
Risk_Management_and_Derivative4
Risk Management and Derivative Instruments (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Gains (losses) on Commodity Derivative Contracts | ' | ' |
Realized net losses | $14,810 | $5,004 |
Not designated as Hedging Instrument | ' | ' |
Gains (losses) on Commodity Derivative Contracts | ' | ' |
Realized net losses | -14,810 | -5,004 |
Unrealized net losses | ($7,863) | ($15,120) |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Property and Equipment | ' | ' | ' |
Proved properties | $3,017,064,000 | ' | $2,817,062,000 |
Unevaluated properties | 185,635,000 | ' | 243,599,000 |
Other property and equipment | 11,782,000 | ' | 11,113,000 |
Less accumulated depreciation, depletion, amortization and impairment | -1,130,248,000 | ' | -976,880,000 |
Net property and equipment | 2,084,233,000 | ' | 2,094,894,000 |
Other information | ' | ' | ' |
Capitalized qualifying share-based compensation expense | 500,000 | 200,000 | ' |
Depletion expense | 66,204,000 | 41,589,000 | ' |
Depletion expense (per Boe) | 25.37 | 28.51 | ' |
Eagle Property Acquisition | ' | ' | ' |
Other information | ' | ' | ' |
Decrease primarily due to transfers | 21,400,000 | ' | ' |
Anadarko Basin Acquisition | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Proved properties | 417,898,000 | ' | ' |
Other information | ' | ' | ' |
Decrease primarily due to transfers | 38,100,000 | ' | ' |
Other Property and Equipment | Minimum | ' | ' | ' |
Other information | ' | ' | ' |
Estimated useful lives | '5 years | ' | ' |
Other Property and Equipment | Maximum | ' | ' | ' |
Other information | ' | ' | ' |
Estimated useful lives | '7 years | ' | ' |
Oil and Gas Properties | ' | ' | ' |
Other information | ' | ' | ' |
Internal cost capitalized | 3,100,000 | 1,500,000 | ' |
Capitalized qualifying share-based compensation expense | 500,000 | 200,000 | ' |
Impairment | $83,500,000 | ' | ' |
Property_and_Equipment_Details1
Property and Equipment (Details 2) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 05, 2014 | 31-May-13 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | 31-May-13 | Mar. 31, 2014 | |
Pine Prairie field area of Evangeline Parish, Louisiana | 9.25% senior unsecured notes | Anadarko Basin Acquisition | Anadarko Basin Acquisition | Anadarko Basin Acquisition | Anadarko Basin Acquisition | Anadarko Basin Acquisition | ||||
Unaudited pro forma | Maximum | 9.25% senior unsecured notes | Adjustments to purchase price | |||||||
Panther Energy Company, LLC and its partners | ||||||||||
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price, cash | ' | ' | ' | ' | ' | ' | ' | ' | $618,000,000 | ' |
Aggregate principal amount borrowed | ' | ' | ' | ' | 700,000,000 | ' | ' | ' | 700,000,000 | ' |
Interest rate (as a percent) | ' | ' | ' | ' | 9.25% | ' | ' | ' | 9.25% | ' |
Term for finalization of post-closing purchase price adjustments | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Oil and gas properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proved properties | 3,017,064,000 | ' | 2,817,062,000 | ' | ' | 417,898,000 | ' | ' | ' | 400,000 |
Unevaluated | ' | ' | ' | ' | ' | 207,683,000 | ' | ' | ' | 100,000 |
Total assets acquired | ' | ' | ' | ' | ' | 625,581,000 | ' | ' | ' | ' |
Asset retirement obligations | ' | ' | ' | ' | ' | 6,296,000 | ' | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | ' | ' | 6,296,000 | ' | ' | ' | ' |
Net assets acquired | ' | ' | ' | ' | ' | 619,285,000 | ' | ' | ' | ' |
Revenues | 144,662,000 | 71,022,000 | ' | ' | ' | 50,700,000 | ' | ' | ' | ' |
Unaudited Pro forma information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and other | ' | ' | ' | ' | ' | ' | 112,861,000 | ' | ' | ' |
Net loss | ' | ' | ' | ' | ' | ' | -11,524,000 | ' | ' | ' |
Preferred stock dividends | ' | ' | ' | ' | ' | ' | -4,117,000 | ' | ' | ' |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | -86,265,000 | -12,066,000 | ' | ' | ' | ' | -15,641,000 | ' | ' | ' |
Net loss per common share - basic and diluted (in dollars per share) | ($1.31) | ($0.18) | ' | ' | ' | ' | ($0.24) | ' | ' | ' |
Purchase price of subject to standard post-closing adjustments received in cash | ' | ' | ' | $170,000,000 | ' | ' | ' | ' | ' | ' |
Other_Noncurrent_Assets_Detail
Other Noncurrent Assets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Noncurrent Assets | ' | ' |
Deferred financing costs | $42.80 | $44.70 |
Field inventory | 10 | 9.7 |
Other noncurrent assets | $0.20 | $0.20 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accrued Liabilities | ' | ' |
Accrued oil and gas capital expenditures | $114.20 | $87.20 |
Accrued interest | 53.7 | 21.3 |
Accrued revenue and royalty distributions | 67.5 | 64.4 |
Accrued taxes | 7.8 | 4.4 |
Accrued lease operating and workover expenses | 7 | 8.3 |
Other accrued liabilities | $17.90 | $18.80 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | 31-May-13 | Mar. 31, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Oct. 02, 2012 | Oct. 02, 2012 | Oct. 02, 2012 | Oct. 02, 2012 | 31-May-13 | Mar. 31, 2014 | Dec. 31, 2013 | 31-May-13 | 31-May-13 | 31-May-13 | 31-May-13 |
Midstates Sub | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Minimum | Minimum | Minimum | Maximum | Maximum | Senior Revolving Credit Facility, due 2018 | Senior Revolving Credit Facility, due 2018 | Senior Revolving Credit Facility, due 2018 | Senior Revolving Credit Facility, due 2018 | Senior Revolving Credit Facility, due 2018 | Senior Revolving Credit Facility, due 2018 | Senior Revolving Credit Facility, due 2018 | Bridge Facility | Senior Notes, due 2020 | Senior Notes, due 2020 | Senior Notes, due 2020 | Senior Notes, due 2020 | Senior Notes, due 2020 | Senior Notes, due 2020 | Senior Notes, due 2020 | Senior Notes, due 2021 | Senior Notes, due 2021 | Senior Notes, due 2021 | Senior Notes, due 2021 | Senior Notes, due 2021 | Senior Notes, due 2021 | Senior Notes, due 2021 | |||
item | LIBOR Loans | Base rate loans | Fiscal quarter ending March 31, 2014 | Fiscal quarter ending June 30, 2014 | Fiscal quarter ending September 30, 2014 | Fiscal quarter ending December 31, 2014 | Each fiscal quarter thereafter | Midstates Sub | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | item | Minimum | Maximum | Credit Facility Amendment - March 28, 2014 | Period One | Period Two | Maximum | Period One | Period Two | Maximum | Maximum | |||||||||||||||
LIBOR Loans | Midstates Sub | LIBOR Loans | item | Midstates Sub | Period One | Period One | Period Two | ||||||||||||||||||||||||||||||||
Long-Term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $401,150,000 | ' | $401,150,000 | ' | ' | ' | ' | $600,000,000 | ' | $600,000,000 | ' | ' | ' | ' | ' | $700,000,000 | $700,000,000 | ' | ' | ' | ' |
Total long-term debt | 1,701,150,000 | 1,701,150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | 125,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base | ' | ' | ' | 475,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, description | ' | ' | ' | ' | 'LIBOR | 'base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate added to base rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | ' | ' | 2.75% | ' | ' | ' | ' | ' | 1.75% | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.70% | ' | ' | 2.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee, option one (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee, option two (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing base redeterminations at company request per 6 month period following each scheduled borrowing base redetermination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period during which Company may request additional redetermination of borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding loans and other obligations held by lenders, on whose behalf the administrative agent may request for redetermination of borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equal successive monthly payments to make repayment on reduction of borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for commencement of repayment of equal successive monthly payments following the administrative agent's notice regarding borrowing base reduction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration related to Pine Prairie Disposition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base utilization (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio | ' | ' | ' | ' | ' | ' | 475.00% | 450.00% | 425.00% | 425.00% | 400.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in leverage ratio for minimum net proceeds upon the sale of Pine Prairie | ' | ' | ' | 0.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of quarters upon the sale of Pine Prairie to increase leverage ratio | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amendment fee paid (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual current ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Debt to EBITDA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount borrowed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000,000 | ' | ' | ' | 700,000,000 | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.75% | ' | ' | ' | 9.25% | ' | ' | ' | ' | ' | ' |
Proceeds from the offering (net of the initial purchasers' discount and related offering expenses) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000,000 | ' | ' | ' | ' | ' | ' |
Repayment of outstanding facility balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount that can be redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' |
Percentage of debt that can be redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | 35.00% |
Debt instrument redemption period end date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Sep-15 | 30-Sep-16 | ' | ' | ' | ' | 31-May-14 | 31-May-16 | ' | ' |
Redemption price, expressed as percentage of principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' | ' | 110.75% | ' | ' | ' | ' | ' | 103.00% | 109.25% | ' | ' |
Redemption price, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Estimated fair value of the Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $664,500,000 | ' | ' | ' | ' | ' | ' | ' | $733,300,000 | ' | ' | ' | ' | ' |
Effective annual interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.10% | 11.10% | ' | ' | ' | ' | ' | ' | 9.60% | ' | ' | ' | ' | ' |
Equity_and_ShareBased_Compensa2
Equity and Share-Based Compensation (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Sep. 28, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Millions, except Share data, unless otherwise specified | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Eagle Property Acquisition | Eagle Property Acquisition | Eagle Property Acquisition | Eagle Property Acquisition | Common Stock | Common Stock | Common Stock | Preferred Stock | Treasury Stock | ||
Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | item | Series A Preferred Stock | Series A Preferred Stock | ||||||||
Maximum | Minimum | Maximum | Minimum | |||||||||||
Stock issuances and other information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 300,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' |
Preferred stock, par value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' |
Number of votes per share entitled to holders | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' |
Number of preferences or rights of conversion or rights of conversion, exchange, pre-exemption or other subscription rights for common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Preferred stock, shares designated | ' | ' | ' | ' | ' | ' | 325,000 | ' | ' | ' | ' | ' | ' | ' |
Liquidation value (in dollars per share) | ' | ' | ' | $1,125 | ' | ' | $1,000 | ' | ' | ' | ' | ' | ' | ' |
Rate of interest for preferred stock (as a percent) | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion rate for preferred stock (in dollars per share) | ' | ' | ' | ' | ' | $13.50 | ' | $13.50 | $11 | ' | ' | ' | ' | ' |
Period required to convert preferred stock into common stock | ' | ' | ' | ' | ' | '15 days | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends payable | ' | ' | ' | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares of common stock to be issued upon conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,689,164 | 3,005,985 | ' | ' |
Changes in number of outstanding shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share count at the beginning of the period (in shares) | ' | ' | 325,000 | ' | 325,000 | ' | ' | ' | ' | 68,925,745 | ' | ' | ' | 118,702 |
Grants of restricted stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,461,205 | ' | ' | ' | ' |
Forfeitures of restricted stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -791,226 | ' | ' | ' | ' |
Acquisition of treasury stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -135,157 |
Share count at the end of the period (in shares) | ' | ' | 325,000 | ' | 325,000 | ' | ' | ' | ' | 70,595,724 | ' | ' | ' | 253,859 |
Equity_and_ShareBased_Compensa3
Equity and Share-Based Compensation (Details 2) (Incentive units, USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Incentive units | ' |
Restricted Stock Awards | ' |
Incentive units issued | 1,179 |
Stock-based compensation expense (in dollars) | $0 |
Equity_and_ShareBased_Compensa4
Equity and Share-Based Compensation (Details 3) (USD $) | 3 Months Ended | 3 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 20, 2012 | Mar. 31, 2014 | Mar. 31, 2014 |
Restricted stock awards | LTIP | LTIP | LTIP | LTIP | |
Restricted stock awards | Restricted stock awards | ||||
Directors | |||||
Restricted Stock Awards | ' | ' | ' | ' | ' |
Number of shares registered for future issuance | ' | ' | 6,563,435 | ' | ' |
Number of restricted common stock issued to directors, management and employees under the long term incentive plan (in shares) | ' | ' | ' | 4,019,225 | ' |
Vesting period | ' | ' | ' | '3 years | '1 year |
Percentage of awards vesting on each anniversary of the grant | ' | ' | ' | 33.00% | ' |
Shares | ' | ' | ' | ' | ' |
Non-vested shares outstanding at the beginning of the period | 2,963,672 | ' | ' | ' | ' |
Granted (in shares) | 2,461,205 | ' | ' | ' | ' |
Vested (in shares) | -614,426 | ' | ' | ' | ' |
Forfeited (in shares) | -791,226 | ' | ' | ' | ' |
Non-vested shares outstanding at the end of the period | 4,019,225 | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' |
Non-vested shares outstanding at the beginning of the period (in dollars per share) | $7.78 | ' | ' | ' | ' |
Granted (in dollars per share) | $4.66 | ' | ' | ' | ' |
Vested (in dollars per share) | $7.42 | ' | ' | ' | ' |
Forfeited (in dollars per share) | $7.92 | ' | ' | ' | ' |
Non-vested shares outstanding at the end of the period (in dollars per share) | $5.89 | ' | ' | ' | ' |
Additional information | ' | ' | ' | ' | ' |
Unrecognized expense, adjusted for estimated forfeitures (in dollars) | $18.90 | ' | ' | ' | ' |
Weighted-average period for over which unrecognized expense will be recognized | '2 years 4 months 24 days | ' | ' | ' | ' |
Shares available for issuance | ' | 1,602,064 | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Income Taxes | ' |
Provision for federal or state income tax prior to company reorganization | $0 |
Additional disclosure | ' |
Effective annual tax rate (as a percent) | 2.60% |
Federal statutory rate (as a percent) | 35.00% |
Valuation allowance recorded in light of the impairment of oil and gas properties | 29.7 |
Valuation allowance | 75.4 |
Current income taxes | $0 |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Earnings (Loss) Per Share | ' | ' | ' |
Net loss | ($83,645) | ($7,949) | ' |
Preferred Dividend | -2,620 | -4,117 | ' |
Calculated allocation of net loss attributable to shareholders | -86,265 | -12,066 | ' |
Weighted average shares outstanding (in shares) | 65,987,000 | 65,634,000 | ' |
Net loss per share (in dollars per share) | ($1.31) | ($0.18) | ' |
Aggregate number of common shares outstanding | 70,341,865 | ' | 68,807,043 |
Equivalent number of common shares after conversion of Series A preferred stock | 33,234,618 | ' | ' |
Non-vested Restricted Stock | ' | ' | ' |
Earnings (Loss) Per Share | ' | ' | ' |
Aggregate number of common shares outstanding | 4,019,225 | ' | ' |
Series A Preferred Stock | ' | ' | ' |
Earnings (Loss) Per Share | ' | ' | ' |
Preferred stock, shares outstanding | 325,000 | ' | 325,000 |
Liquidation value (in dollars per share) | $1,125 | ' | ' |
Conversion price (in dollars per share) | $11 | ' | ' |
Common Stock | ' | ' | ' |
Earnings (Loss) Per Share | ' | ' | ' |
Net loss | -83,645 | -7,949 | ' |
Preferred Dividend | -2,620 | -4,117 | ' |
Calculated allocation of net loss attributable to shareholders | ($86,265) | ($12,066) | ' |
Weighted average shares outstanding (in shares) | 65,987,000 | 65,634,000 | ' |
Net loss per share (in dollars per share) | ($1.31) | ($0.18) | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Net minimum commitments | ' | ' |
Total | $30,125,000 | ' |
2014 | 20,434,000 | ' |
2015 | 2,226,000 | ' |
2016 | 1,877,000 | ' |
2017 and beyond | 5,588,000 | ' |
Office rent | 500,000 | 400,000 |
Drilling contracts | ' | ' |
Net minimum commitments | ' | ' |
Total | 15,061,000 | ' |
2014 | 14,692,000 | ' |
2015 | 369,000 | ' |
Non-cancellable office lease commitments | ' | ' |
Net minimum commitments | ' | ' |
Total | 10,654,000 | ' |
2014 | 1,332,000 | ' |
2015 | 1,857,000 | ' |
2016 | 1,877,000 | ' |
2017 and beyond | 5,588,000 | ' |
Seismic contracts | ' | ' |
Net minimum commitments | ' | ' |
Total | 4,410,000 | ' |
2014 | $4,410,000 | ' |
Gas transportation gathering and processing contract | Minimum | ' | ' |
Net minimum commitments | ' | ' |
Fee used as multiple for payment to the counterparty equal to the shortfall amount (in dollars per gallon/MMBTU) | 0.06 | ' |
Gas transportation gathering and processing contract | Maximum | ' | ' |
Net minimum commitments | ' | ' |
Fee used as multiple for payment to the counterparty equal to the shortfall amount (in dollars per gallon/MMBTU) | 0.125 | ' |
Gas transportation gathering and processing contract | Natural Gas | Delivery during first 30 months of the contract | ' | ' |
Net minimum commitments | ' | ' |
Fee used as multiple for payment to the counterparty equal to the shortfall amount (in dollars per gallon/MMBTU) | 0.36 | ' |
Contractual obligation | 38,100,000 | ' |
Period after which company would receive volumetric credit for any deficiency payment under contract | '30 months | ' |
Gas transportation gathering and processing contract | Natural Gas | Delivery during first 60 months of the contract | ' | ' |
Net minimum commitments | ' | ' |
Fee used as multiple for payment to the counterparty equal to the shortfall amount (in dollars per gallon/MMBTU) | 0.36 | ' |
Contractual obligation | 76,200,000 | ' |
Period after which company would receive volumetric credit for any deficiency payment under contract | '60 months | ' |
Gas transportation gathering and processing contract | NGL | Minimum | ' | ' |
Net minimum commitments | ' | ' |
Volume commitments per day over the remaining term of the contract | 2,800 | ' |
Gas transportation gathering and processing contract | NGL | Maximum | ' | ' |
Net minimum commitments | ' | ' |
Volume commitments per day over the remaining term of the contract | 5,460 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 05, 2014 | 1-May-14 | 1-May-14 | 1-May-14 | 1-May-14 | 1-May-14 | 1-May-14 | 1-May-14 | 1-May-14 |
In Millions, unless otherwise specified | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Secured revolving credit facility | Pine Prairie field area of Evangeline Parish, Louisiana | Pine Prairie field area of Evangeline Parish, Louisiana | Pine Prairie field area of Evangeline Parish, Louisiana | Pine Prairie field area of Evangeline Parish, Louisiana | Pine Prairie field area of Evangeline Parish, Louisiana | Pine Prairie field area of Evangeline Parish, Louisiana | Pine Prairie field area of Evangeline Parish, Louisiana | Pine Prairie field area of Evangeline Parish, Louisiana | Pine Prairie field area of Evangeline Parish, Louisiana |
Fiscal quarter ending June 30, 2014 | Fiscal quarter ending September 30, 2014 | Fiscal quarter ending December 31, 2014 | Each fiscal quarter thereafter | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Revolving credit facility | Bridge Facility | |||
Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Subsequent event | Subsequent event | ||||||||
Fiscal quarter ending June 30, 2014 | Fiscal quarter ending September 30, 2014 | Fiscal quarter ending December 31, 2014 | Each fiscal quarter thereafter | |||||||||||
Subsequent Event | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Purchase price | ' | ' | ' | ' | ' | $170 | $170 | ' | ' | ' | ' | ' | ' | ' |
Purchase price after post-closing adjustments and assumption certain liabilities associated with the assets | ' | ' | ' | ' | ' | ' | 147.5 | ' | ' | ' | ' | ' | ' | ' |
Repayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 131 | ' |
Commitment fees and expenses paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.3 |
Maximum borrowing capacity | ' | ' | ' | ' | $750 | ' | ' | $475 | ' | ' | ' | ' | ' | ' |
Leverage ratio | 450.00% | 425.00% | 425.00% | 400.00% | ' | ' | ' | ' | 500.00% | 475.00% | 475.00% | 400.00% | ' | ' |