Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 04, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Midstates Petroleum Company, Inc. | ' |
Entity Central Index Key | '0001533924 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-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 | ' | 70,457,656 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $25,717 | $33,163 |
Accounts receivable: | ' | ' |
Oil and gas sales | 97,304 | 102,483 |
Joint interest billing | 31,138 | 42,631 |
Other | 11,120 | 1,090 |
Commodity derivative contracts | 7,333 | 700 |
Deferred income taxes | 982 | 11,837 |
Other current assets | 1,256 | 693 |
Total current assets | 174,850 | 192,597 |
PROPERTY AND EQUIPMENT: | ' | ' |
Oil and gas properties, on the basis of full-cost accounting | 3,319,257 | 3,060,661 |
Other property and equipment | 12,805 | 11,113 |
Less accumulated depreciation, depletion, amortization and impairment | -1,274,168 | -976,880 |
Net property and equipment | 2,057,894 | 2,094,894 |
OTHER ASSETS: | ' | ' |
Commodity derivative contracts | 436 | 19 |
Other noncurrent assets | 46,788 | 54,597 |
Total other assets | 47,224 | 54,616 |
TOTAL | 2,279,968 | 2,342,107 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 13,511 | 21,493 |
Accrued liabilities | 233,147 | 204,381 |
Commodity derivative contracts | 2,429 | 27,880 |
Total current liabilities | 249,087 | 253,754 |
LONG-TERM LIABILITIES: | ' | ' |
Asset retirement obligations | 20,935 | 26,308 |
Commodity derivative contracts | 101 | 3,651 |
Long-term debt | 1,669,150 | 1,701,150 |
Deferred income taxes | 4,341 | 15,291 |
Other long-term liabilities | 2,078 | 1,954 |
Total long-term liabilities | 1,696,605 | 1,748,354 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ' | ' |
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; 70,606,079 shares issued and 70,169,242 shares outstanding at September 30, 2014 and 68,925,745 shares issued and 68,807,043 shares outstanding at December 31, 2013 | 705 | 689 |
Treasury stock | -2,386 | -664 |
Additional paid-in-capital | 878,176 | 871,047 |
Retained deficit | -542,222 | -531,076 |
Total stockholders' equity | 334,276 | 339,999 |
TOTAL | 2,279,968 | 2,342,107 |
Series A mandatorily convertible preferred stock, $0.01 par value, $380,204 and $358,550 liquidation value at September 30, 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 $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 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 | 70,606,079 | 68,925,745 |
Common stock, shares outstanding | 70,169,242 | 68,807,043 |
Preferred stock, $0.01 par value, 49,675,000 shares authorized; no shares issued or outstanding | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
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, $380,204 and $358,550 liquidation value at September 30, 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) | $380,204 | $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 | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
REVENUES : | ' | ' | ' | ' |
Oil sales | $125,430 | $119,049 | $372,925 | $268,903 |
Natural gas liquid sales | 22,989 | 18,939 | 71,528 | 39,656 |
Natural gas sales | 24,607 | 18,775 | 74,986 | 42,034 |
Gains (losses) on commodity derivative contracts - net | 50,978 | -45,296 | -3,162 | -42,999 |
Other | 757 | 38 | 1,136 | 941 |
Total revenues | 224,761 | 111,505 | 517,413 | 308,535 |
EXPENSES : | ' | ' | ' | ' |
Lease operating and workover | 16,965 | 21,784 | 56,813 | 53,230 |
Gathering and transportation | 3,902 | 2,583 | 9,697 | 2,583 |
Severance and other taxes | 5,780 | 8,080 | 19,059 | 20,614 |
Asset retirement accretion | 406 | 421 | 1,335 | 988 |
Depreciation, depletion, and amortization | 73,109 | 74,789 | 211,084 | 169,595 |
Impairment in carrying value of oil and gas properties | ' | ' | 86,471 | ' |
General and administrative | 9,879 | 13,911 | 34,997 | 40,209 |
Acquisition and transaction costs | 1,283 | 194 | 3,894 | 11,686 |
Other | 2,346 | 614 | 3,285 | 614 |
Total expenses | 113,670 | 122,376 | 426,635 | 299,519 |
OPERATING INCOME (LOSS) | 111,091 | -10,871 | 90,778 | 9,016 |
OTHER INCOME (EXPENSE) : | ' | ' | ' | ' |
Interest income | 10 | 7 | 29 | 17 |
Interest expense - net of amounts capitalized | -34,288 | -25,950 | -102,048 | -53,438 |
Total other income (expense) | -34,278 | -25,943 | -102,019 | -53,421 |
INCOME (LOSS) BEFORE TAXES | 76,813 | -36,814 | -11,241 | -44,405 |
Income tax (expense) benefit | -2,216 | 13,208 | 95 | 16,188 |
NET INCOME (LOSS) | 74,597 | -23,606 | -11,146 | -28,217 |
Preferred stock dividend | -1,908 | -2,569 | -9,334 | -9,254 |
Participating securities - Series A Preferred Stock | -23,973 | ' | ' | ' |
Participating securities - Non-vested Restricted Stock | -2,524 | ' | ' | ' |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $46,192 | ($26,175) | ($20,479) | ($37,471) |
Basic and diluted net income (loss) per share attributable to common shareholders (in dollars per share) | $0.69 | ($0.40) | ($0.31) | ($0.57) |
Basic and diluted weighted average number of common shares outstanding (in shares) | 66,598 | 65,821 | 66,340 | 65,740 |
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, 2012 | $677,469 | $666 | ' | $863,891 | ($187,091) | $3 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Share-based compensation | 6,068 | 20 | ' | 6,048 | ' | ' |
Acquisition of treasury stock | -605 | ' | -605 | ' | ' | ' |
Net loss | -28,217 | ' | ' | ' | -28,217 | ' |
Balance at Sep. 30, 2013 | 654,715 | 686 | -605 | 869,939 | -215,308 | 3 |
Balance at Dec. 31, 2013 | 339,999 | 689 | -664 | 871,047 | -531,076 | 3 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Share-based compensation | 7,145 | 16 | ' | 7,129 | ' | ' |
Acquisition of treasury stock | -1,722 | ' | -1,722 | ' | ' | ' |
Net loss | -11,146 | ' | ' | ' | -11,146 | ' |
Balance at Sep. 30, 2014 | $334,276 | $705 | ($2,386) | $878,176 | ($542,222) | $3 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES : | ' | ' |
Net loss | ($11,146) | ($28,217) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Losses on commodity derivative contracts - net | 3,162 | 42,999 |
Net cash paid for commodity derivative contracts not designated as hedging instruments | -39,213 | -16,002 |
Asset retirement accretion | 1,335 | 988 |
Depreciation, depletion, and amortization | 211,084 | 169,595 |
Impairment in carrying value of oil and gas properties | 86,471 | ' |
Share-based compensation, net of amounts capitalized to oil and gas properties | 5,358 | 4,921 |
Deferred income taxes | -95 | -16,188 |
Amortization of deferred financing costs | 6,018 | 4,156 |
Change in operating assets and liabilities: | ' | ' |
Accounts receivable - oil and gas sales | 5,179 | -52,598 |
Accounts receivable - JIB and other | 10,551 | -13,544 |
Other current and noncurrent assets | 1,815 | -2,622 |
Accounts payable | 503 | -3,027 |
Accrued liabilities | 30,921 | 89,666 |
Other | 124 | -186 |
Net cash provided by operating activities | 312,067 | 179,941 |
CASH FLOWS FROM INVESTING ACTIVITIES : | ' | ' |
Investment in property and equipment | -435,363 | -437,521 |
Investment in acquired property | ' | -621,748 |
Proceeds from the sale of oil and gas properties | 150,530 | ' |
Net cash used in investing activities | -284,833 | -1,059,269 |
CASH FLOWS FROM FINANCING ACTIVITIES : | ' | ' |
Proceeds from long-term borrowings | 99,000 | 946,450 |
Repayment of long-term borrowings | -131,000 | -34,300 |
Deferred financing costs | -958 | -26,142 |
Acquisition of treasury stock | -1,722 | -605 |
Net cash (used in) provided by financing activities | -34,680 | 885,403 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -7,446 | 6,075 |
Cash and cash equivalents, beginning of period | 33,163 | 18,878 |
Cash and cash equivalents, end of period | 25,717 | 24,953 |
SUPPLEMENTAL INFORMATION: | ' | ' |
Non-cash transactions - investments in property and equipment accrued - not paid | 98,000 | 100,500 |
Cash paid for interest, net of capitalized interest of $10.5 million and $24.6 million, respectively | $63,538 | $11,671 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ' | ' |
Capitalized interest | $10.50 | $24.60 |
Organization_and_Business
Organization and Business | 9 Months Ended |
Sep. 30, 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 liquids (“NGL”) and natural gas. 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 “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 “Pine Prairie Disposition”). The PSA had an effective date of November 1, 2013. Acreage subject to the transaction did not include acreage and production in the western part of Louisiana in Beauregard or Calcasieu Parishes or other undeveloped acreage held outside the Pine Prairie field. The sale closed on May 1, 2014. | |
The Company has oil and gas operations and properties in Oklahoma, Texas and Louisiana. At September 30, 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 | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2014, and determined that none would have a material impact on the Company’s condensed consolidated financial statements, with the exception of ASU 2014-09, “Revenue from Contracts with Customers ” and ASU 2014-15, “Presentation of Financial Statements - Going Concern,” (both effective for annual reporting periods beginning after December 15, 2016), which the Company is still evaluating. |
Fair_Value_Measurements_of_Fin
Fair Value Measurements of Financial Instruments | 9 Months Ended | |||||||||||||
Sep. 30, 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 September 30, 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 “Gains (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 September 30, 2014 | ||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||
in Active | Other | Unobservable | ||||||||||||
Markets | Observable | Inputs | ||||||||||||
(Level 1) | Inputs | (Level 3) | ||||||||||||
(Level 2) | ||||||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Commodity derivative oil swaps | $ | — | $ | 6,557 | $ | — | $ | 6,557 | ||||||
Commodity derivative gas swaps | — | 2,421 | — | 2,421 | ||||||||||
Commodity derivative oil collars | — | 30 | — | 30 | ||||||||||
Commodity derivative gas collars | — | 15 | — | 15 | ||||||||||
Commodity derivative differential swaps | — | 221 | — | 221 | ||||||||||
Total assets | $ | — | $ | 9,244 | $ | — | $ | 9,244 | ||||||
Liabilities: | ||||||||||||||
Commodity derivative oil swaps | $ | — | $ | 3,924 | $ | — | $ | 3,924 | ||||||
Commodity derivative gas swaps | — | 75 | — | 75 | ||||||||||
Commodity derivative gas collars | — | 6 | — | 6 | ||||||||||
Total liabilities | $ | — | $ | 4,005 | $ | — | $ | 4,005 | ||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||
in Active | Other | Unobservable | ||||||||||||
Markets | Observable | Inputs | ||||||||||||
(Level 1) | 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 | 9 Months Ended | |||||||||||||
Sep. 30, 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 September 30, 2014 would have been approximately $7.8 million. | ||||||||||||||
Commodity Derivative Contracts | ||||||||||||||
As of September 30, 2014, the Company had the following open commodity derivative contract positions: | ||||||||||||||
Hedged | Weighted-Average | |||||||||||||
Volume | Fixed Price | |||||||||||||
Oil (Bbls): | ||||||||||||||
WTI Swaps — 2014 | 1,097,000 | $ | 89.04 | |||||||||||
WTI Swaps — 2015 | 2,908,000 | $ | 89.42 | |||||||||||
WTI Collars — 2014 | 40,200 | $ | 86.49 | - | $ | 97.71 | ||||||||
WTI to LLS Basis Differential Swaps — 2014 (1) | 91,500 | $ | 5.35 | |||||||||||
Natural Gas (MMBtu): | ||||||||||||||
Swaps — 2014 (2) | 4,508,000 | $ | 4.17 | |||||||||||
Swaps — 2015 | 18,250,000 | $ | 4.13 | |||||||||||
Collars — 2014 | 194,001 | $ | 3.39 | - | $ | 4.57 | ||||||||
(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 1,519,000 MMBtus in natural gas swaps that priced during the period, but had not cash settled as of September 30, 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 September 30, 2014 and December 31, 2013, respectively (in thousands): | ||||||||||||||
Type | Balance Sheet Location (1) | September 30, 2014 | December 31, 2013 | |||||||||||
Oil Swaps | Derivative financial instruments — Current Assets | $ | 6,557 | $ | — | |||||||||
Oil Swaps | Derivative financial instruments — Current Liabilities | (3,823 | ) | (28,871 | ) | |||||||||
Oil Swaps | Derivative financial instruments — Non-Current Liabilities | (101 | ) | (3,338 | ) | |||||||||
NGL Swaps | Derivative financial instruments — Current Assets | — | 469 | |||||||||||
NGL Swaps | Derivative financial instruments — Current Liabilities | — | (74 | ) | ||||||||||
Gas Swaps | Derivative financial instruments — Current Assets | 1,985 | 469 | |||||||||||
Gas Swaps | Derivative financial instruments — Non-Current Assets | 436 | 19 | |||||||||||
Gas Swaps | Derivative financial instruments — Current Liabilities | (75 | ) | (496 | ) | |||||||||
Gas Swaps | Derivative financial instruments — Non-Current Liabilities | — | (313 | ) | ||||||||||
Oil Collars | Derivative financial instruments — Current Assets | 30 | 64 | |||||||||||
Oil Collars | Derivative financial instruments — Current Liabilities | — | (272 | ) | ||||||||||
Gas Collars | Derivative financial instruments — Current Assets | 15 | 751 | |||||||||||
Gas Collars | Derivative financial instruments — Current Liabilities | (6 | ) | (26 | ) | |||||||||
Basis Differential Swaps | Derivative financial instruments — Current Assets | 221 | 806 | |||||||||||
Total derivative fair value at period end | $ | 5,239 | $ | (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 September 30, 2014 and December 31, 2013, respectively (in thousands): | ||||||||||||||
September 30, 2014 | ||||||||||||||
Not Designated as | Balance Sheet Classification | Gross | Gross | Net Recognized | ||||||||||
ASC 815 Hedges: | Recognized | Amounts | Fair Value Assets/ | |||||||||||
Assets/ | Offset | Liabilities | ||||||||||||
Liabilities | ||||||||||||||
Derivative assets: | ||||||||||||||
Commodity contracts | Derivative financial instruments - current | $ | 8,808 | $ | 1,475 | $ | 7,333 | |||||||
Commodity contracts | Derivative financial instruments - noncurrent | 436 | — | 436 | ||||||||||
$ | 9,244 | $ | 1,475 | $ | 7,769 | |||||||||
Derivative liabilities: | ||||||||||||||
Commodity contracts | Derivative financial instruments - current | $ | 3,904 | $ | 1,475 | $ | 2,429 | |||||||
Commodity contracts | Derivative financial instruments - noncurrent | 101 | — | 101 | ||||||||||
$ | 4,005 | $ | 1,475 | $ | 2,530 | |||||||||
December 31, 2013 | ||||||||||||||
Not Designated as | Balance Sheet Classification | Gross | Gross | Net Recognized | ||||||||||
ASC 815 Hedges: | Recognized | Amounts | Fair Value Assets/ | |||||||||||
Assets/ | Offset | 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 “Gains (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 gains (losses) recorded by the Company related to the change in fair value of the derivative instruments in “Gains (losses) on commodity derivative contracts — net” for the periods presented: | ||||||||||||||
For the Three Months | For the Nine Months | |||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Realized net losses | $ | (7,265 | ) | $ | (9,927 | ) | $ | (39,213 | ) | $ | (16,002 | ) | ||
Unrealized net gains (losses) | 58,243 | (35,369 | ) | 36,051 | (26,997 | ) | ||||||||
Gains (losses) on commodity derivative contracts - net | $ | 50,978 | $ | (45,296 | ) | $ | (3,162 | ) | $ | (42,999 | ) | |||
Property_and_Equipment
Property and Equipment | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Property and Equipment | ' | |||||||||||||||||||||||||
Property and Equipment | ' | |||||||||||||||||||||||||
5. Property and Equipment | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Oil and gas properties, on the basis of full-cost accounting: | ||||||||||||||||||||||||||
Proved properties | $ | 3,194,225 | $ | 2,817,062 | ||||||||||||||||||||||
Unevaluated properties | 125,032 | 243,599 | ||||||||||||||||||||||||
Other property and equipment | 12,805 | 11,113 | ||||||||||||||||||||||||
Less accumulated depreciation, depletion, amortization and impairment | (1,274,168 | ) | (976,880 | ) | ||||||||||||||||||||||
Net property and equipment | $ | 2,057,894 | $ | 2,094,894 | ||||||||||||||||||||||
Oil and Gas Properties | ||||||||||||||||||||||||||
The Company capitalizes internal costs directly related to exploration and development activities to oil and gas properties. During the three and nine months ended September 30, 2014 and 2013, the Company capitalized the following amounts (in thousands): | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Internal costs capitalized to oil and gas properties (1) | $ | 2,771 | $ | 2,822 | $ | 9,159 | $ | 6,218 | ||||||||||||||||||
(1) Inclusive of $0.6 million and $0.5 million of qualifying share-based compensation expense for the three months ended September 30, 2014 and 2013, respectively. For the nine months ended September 30, 2014 and 2013, inclusive of $1.8 million and $1.1 million of qualifying share-based compensation expense, 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 condensed consolidated statements of operations. | ||||||||||||||||||||||||||
At September 30, 2014 and September 30, 2013 capitalized costs did not exceed the ceiling and an impairment to oil and gas properties was not required; however, the Company’s ceiling test calculation at September 30, 2014 indicated that the Company’s capitalized costs were within 5% of the ceiling. An impairment of $83.5 million (after tax) to oil and gas properties was recorded during the nine months ended September 30, 2014 as a result of the capitalized costs exceeding the ceiling at March 31, 2014. | ||||||||||||||||||||||||||
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 and nine months ended September 30, 2014 and 2013, respectively: | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
(in thousands) | (per Boe) | (in thousands) | (per Boe) | |||||||||||||||||||||||
Depletion expense | $ | 72,337 | $ | 74,345 | $ | 23.27 | $ | 28.39 | $ | 208,864 | $ | 168,190 | $ | 24.22 | $ | 28.68 | ||||||||||
Depreciation on other property | 772 | 444 | 0.25 | 0.17 | 2,220 | 1,405 | 0.26 | 0.23 | ||||||||||||||||||
Depreciation, depletion, and amortization | $ | 73,109 | $ | 74,789 | $ | 23.52 | $ | 28.56 | $ | 211,084 | $ | 169,595 | $ | 24.48 | $ | 28.91 | ||||||||||
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 $125.0 million at September 30, 2014 compared to $243.6 million at December 31, 2013, decreasing primarily due to property transfers related to the Anadarko Basin ($63.2 million) and Mississippian Lime ($51.5 million) areas. | ||||||||||||||||||||||||||
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 fair value of, and the allocation to, the assets acquired and liabilities assumed in the Anadarko Basin Acquisition has been finalized and is shown in the following table (in thousands): | ||||||||||||||||||||||||||
Anadarko Basin | ||||||||||||||||||||||||||
Acquisition | ||||||||||||||||||||||||||
Oil and gas properties | ||||||||||||||||||||||||||
Proved | $ | 417,750 | ||||||||||||||||||||||||
Unevaluated | 207,606 | |||||||||||||||||||||||||
Total assets acquired | $ | 625,356 | ||||||||||||||||||||||||
Asset retirement obligations | 6,296 | |||||||||||||||||||||||||
Total liabilities assumed | $ | 6,296 | ||||||||||||||||||||||||
Net assets acquired | $ | 619,060 | ||||||||||||||||||||||||
The finalized balances in the table above include immaterial changes to the amounts originally allocated to oil and gas properties. These changes were required to reflect the final consideration paid after adjustment for certain post-closing purchase price amounts. | ||||||||||||||||||||||||||
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 and nine months ended September 30, 2014 were $45.8 million and $148.2 million, respectively. Revenues attributable to the Anadarko Basin Acquisition included in the Company’s unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2013 was $45.6 million and $59.8 million, respectively. | ||||||||||||||||||||||||||
The following table presents unaudited pro forma information for the Company as if the Anadarko Basin Acquisition had been completed on January 1, 2013 (in thousands, other than per share amounts): | ||||||||||||||||||||||||||
For the Nine Months | ||||||||||||||||||||||||||
Ended September 30, | ||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Revenues and other | $ | 378,591 | ||||||||||||||||||||||||
Net loss | (21,401 | ) | ||||||||||||||||||||||||
Preferred stock dividends | (9,254 | ) | ||||||||||||||||||||||||
Loss attributable to common shareholders | $ | (30,655 | ) | |||||||||||||||||||||||
Net loss per common share - basic and diluted | $ | (0.47 | ) | |||||||||||||||||||||||
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 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 had an effective date of November 1, 2013. Acreage subject to the transaction did not include acreage and production in the western part of Louisiana in Beauregard and Calcasieu Parishes or other undeveloped acreage held outside the Pine Prairie field. On May 1, 2014, the Company closed on the sale for estimated net proceeds of $147.5 million, of which $131.0 million was used to reduce amounts outstanding under its revolving credit facility, with the remainder retained for transaction expenses and working capital purposes. The Company reduced the full cost pool subject to amortization by the amount of the net proceeds received and other standard post-closing adjustments. Accordingly, no gain or loss was recognized. | ||||||||||||||||||||||||||
Exploration Agreement with PetroQuest | ||||||||||||||||||||||||||
On June 25, 2014, the Company entered into an exploration agreement with PetroQuest Energy LLC (“PetroQuest”) with an effective date of May 1, 2014, in which the Company conveyed to PetroQuest an undivided 50% of its right, title and interest in and to the acreage and other interests in the Fleetwood prospect area in Louisiana. | ||||||||||||||||||||||||||
With the execution of the agreement, PetroQuest paid $3.0 million in cash consideration and, on or before January 5, 2015, PetroQuest will pay additional cash of $7.0 million. As further consideration, PetroQuest granted a credit to the Company (or will pay on its behalf) of an additional non-interest bearing total sum of $14.0 million, to be credited or paid against the Company’s share of costs or expenses incurred to develop the prospect area, including but not limited to, all mineral lease acquisition or maintenance costs and all drilling, completion, equipping and facility costs. For any amounts not fully paid on or before December 31, 2015, the Company can elect to take the remaining portion in cash. | ||||||||||||||||||||||||||
At September 30, 2014, the Company had a receivable of $7.0 million included in “Other accounts receivable”, which represented the additional cash the Company expects to receive on or before January 5, 2015 under the exploration agreement with PetroQuest. |
Other_Noncurrent_Assets
Other Noncurrent Assets | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Other Noncurrent Assets | ' | |||||||
Other Noncurrent Assets | ' | |||||||
6. Other Noncurrent Assets | ||||||||
At September 30, 2014 and December 31, 2013 other noncurrent assets consisted of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Deferred financing costs | $ | 39,647 | $ | 44,706 | ||||
Field inventory | 6,930 | 9,682 | ||||||
Other | 211 | 209 | ||||||
Other noncurrent assets | $ | 46,788 | $ | 54,597 | ||||
During the nine months ended September 30, 2014, the Company has recorded approximately $5.2 million in adjustments to field inventory, either as a result of physical inventory counts, disposals, or market adjustments; this is offset by additional inventory added during the period of approximately $2.4 million. For the three and nine months ended September 30, 2014, the Company recorded $2.3 million and $3.3 million, respectively, of losses on sale of, or market value adjustments to, inventory. For the three and nine months ended September 30, 2013, the Company recorded $0.6 million of losses on sale of, or market value adjustments to, inventory. |
Accrued_Liabilities
Accrued Liabilities | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accrued Liabilities | ' | |||||||
Accrued Liabilities | ' | |||||||
7. Accrued Liabilities | ||||||||
At September 30, 2014 and December 31, 2013 accrued liabilities consisted of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Accrued oil and gas capital expenditures | $ | 86,809 | $ | 87,202 | ||||
Accrued revenue and royalty distributions | 62,692 | 64,370 | ||||||
Accrued lease operating and workover expense | 6,846 | 8,279 | ||||||
Accrued interest | 53,833 | 21,341 | ||||||
Accrued taxes | 8,113 | 4,386 | ||||||
Other | 14,854 | 18,803 | ||||||
Accrued liabilities | $ | 233,147 | $ | 204,381 |
Asset_Retirement_Obligations
Asset Retirement Obligations | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Asset Retirement Obligations | ' | ||||
Asset Retirement Obligations | ' | ||||
8. Asset Retirement Obligations | |||||
Asset Retirement Obligations (“AROs”) represent the future abandonment costs of tangible assets, such as wells, service assets and other facilities. The fair value of the ARO at inception is capitalized as part of the carrying amount of the related long-lived assets. AROs approximated $20.9 million and $26.3 million as of September 30, 2014 and December 31, 2013, respectively, and the liability has been accreted to its present value as of September 30, 2014 and December 31, 2013. | |||||
The Company evaluated its wells and determined a range of abandonment dates through 2071. At September 30, 2014, all asset retirement obligations represent long-term liabilities and are classified as such. | |||||
The following table reflects the changes in the Company’s AROs for the nine months ended September 30, 2014 (in thousands): | |||||
Asset retirement obligations at January 1, 2014 | $ | 26,308 | |||
Liabilities incurred | 991 | ||||
Revisions | — | ||||
Liabilities settled | (47 | ) | |||
Liabilities eliminated through asset sale (1) | (7,652 | ) | |||
Current period accretion expense | 1,335 | ||||
Asset retirement obligations at September 30, 2014 | $ | 20,935 | |||
(1) As a result of the Pine Prairie Disposition, AROs were reduced by approximately $7.7 million during the nine months ended September 30, 2014. See discussion of the Pine Prairie Disposition in Note 5. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Long-Term Debt | ' | |||||||
Long-Term Debt | ' | |||||||
9. Long-Term Debt | ||||||||
The Company’s long-term debt as of September 30, 2014 and December 31, 2013 is as follows: | ||||||||
At September 30, 2014 | At December 31, 2013 | |||||||
(in thousands) | ||||||||
Revolving credit facility, due 2018 | $ | 369,150 | $ | 401,150 | ||||
Senior notes, due 2020 | 600,000 | 600,000 | ||||||
Senior notes, due 2021 | 700,000 | 700,000 | ||||||
Long-term debt | $ | 1,669,150 | $ | 1,701,150 | ||||
Reserve-based Credit Facility | ||||||||
The Company’s credit facility consists of a $750 million senior revolving credit facility (the “Credit Facility”) with a borrowing base supported by the Company’s Mississippian Lime and Anadarko Basin oil and gas assets. On September 30, 2014, the Company entered into an Assignment and Borrowing Base Increase Agreement that increased the borrowing base from $475 million to $525 million. At September 30, 2014, outstanding letters of credit obligations under the revolving credit facility total $1.4 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 bear interest at LIBOR plus an applicable margin, depending upon the Company’s borrowing base utilization, between 2.00% and 3.00% per annum. At September 30, 2014 and 2013, the weighted average interest rate was 2.8% and 2.5%, 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 exceeds 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. | ||||||||
The Credit Facility contains, among other standard affirmative and negative covenants, financial covenants including a maximum ratio of debt to EBITDA (i.e. leverage ratio) and a minimum current ratio (as defined therein) of not less than 1.0 to 1.0. The Company is required to maintain a leverage ratio of not more than 4.75 to 1.00 for the quarters ending September 30, 2014 and December 31, 2014, and 4.00 to 1.00 for each quarter thereafter. | ||||||||
As of September 30, 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 September 30, 2014 was 1.3 to 1.0. At September 30, 2014, the Company’s ratio of debt to EBITDA was 3.6 to 1.0. | ||||||||
Based upon the recent amendments to the Credit Facility, the Company believes its carrying amount at September 30, 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 Senior Notes”) in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). 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. | ||||||||
The 2020 Senior Notes 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. | ||||||||
The estimated fair value of the 2020 Senior Notes was $619.5 million as of September 30, 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 and nine months ended September 30, 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 Senior 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 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. | ||||||||
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 $696.5 million as of September 30, 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 and nine months ended September 30, 2014 and approximately 9.4% and 9.5% for the three and nine months ended September 30, 2013, respectively. |
Equity_and_ShareBased_Compensa
Equity and Share-Based Compensation | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Equity and Share-Based Compensation | ' | |||||||
Equity and Share-Based Compensation | ' | |||||||
10. 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. | ||||||||
On September 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 $1,170. As a result, the Company will be obligated to issue between 1,083,202 and 1,329,385 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. | ||||||||
For the three months ended September 30, 2014, the $1.9 million Series A Preferred Stock dividend (paid through the adjustment to the liquidation preference) was based upon the estimated fair value of 664,692 common shares that would have been issued had the Series A Preferred Stock dividend for the period converted into common shares using a conversion price of $11.00 per share. | ||||||||
For the nine months ended September 30, 2014, the $9.3 million Series A Preferred Stock dividend (paid through the adjustment to the liquidation preference) was based upon the estimated fair value of 1,968,512 common shares that would have been issued had the Series A Preferred Stock dividend for the period been converted into common shares using a conversion price of $11.00 per share. | ||||||||
Share Activity | ||||||||
The following table summarizes changes in the number of outstanding shares during the nine months ended September 30, 2014: | ||||||||
Number of Shares | ||||||||
Series A | Common | Treasury | ||||||
Preferred | Stock | Stock | ||||||
Stock | ||||||||
Share count as of December 31, 2013 | 325,000 | 68,925,745 | (118,702 | ) | ||||
Grants of restricted stock | — | 3,124,478 | — | |||||
Forfeitures of restricted stock | — | (1,444,144 | ) | — | ||||
Acquisition of treasury stock | — | — | (318,135 | ) | ||||
Share count as of September 30, 2014 | 325,000 | 70,606,079 | (436,837 | ) | ||||
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 September 30, 2014, 1,113 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 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 FRMI incentive units has been recognized by the Company, as any payout under the FRMI incentive units is not considered probable as 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. On May 27, 2014, the Company filed a Form S-8 with the SEC, increasing the number of shares available for future issuance under the terms of the 2012 LTIP to 8,638,435 shares of common stock. | ||||||||
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. As of September 30, 2014, a total of 8,638,435 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 | ||||||||
At September 30, 2014, the Company had 3,520,836 non-vested shares of restricted common stock outstanding pursuant to the 2012 LTIP. 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 nine months ended September 30, 2014: | ||||||||
Shares | Weighted | |||||||
Average | ||||||||
Grant Date | ||||||||
Fair Value | ||||||||
Non-vested shares outstanding at December 31, 2013 | 2,963,672 | $ | 7.78 | |||||
Granted | 3,124,478 | $ | 4.96 | |||||
Vested | (1,123,170 | ) | $ | 7.61 | ||||
Forfeited | (1,444,144 | ) | $ | 6.87 | ||||
Non-vested shares outstanding at September 30, 2014 | 3,520,836 | $ | 5.7 | |||||
Unrecognized expense, adjusted for estimated forfeitures, as of September 30, 2014 for all outstanding restricted stock awards, was $14.8 million and will be recognized over a weighted average period of 2.1 years. | ||||||||
At September 30, 2014, 3,666,709 shares remain available for issuance under the terms of the 2012 LTIP. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
11. 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 taxable C-Corporation and became subject to federal and state income taxes. | |
The Company has recorded a tax benefit on its year-to-date pre-tax loss. The Company believes this methodology to be more appropriate at this time due to uncertainty in forecasting the annual effective tax rate (or benefit) on 2014 income (or loss) due to previously recorded property impairments, the effects of federal and state valuation allowance adjustments, and hedging volatility. | |
For the nine months ended September 30, 2014, the Company’s effective tax rate was a benefit of approximately 0.9%. The Company’s effective tax rate for the third quarter of 2014 differs from the federal statutory rate of 35% due to the effect of state income taxes and changes in the valuation allowance. During 2014, the Company recorded $2.2 million in additional valuation allowance in light of the impairment of oil and gas properties and the tax gain related to the Pine Prairie Disposition, bringing the total valuation allowance to $48.1 million at September 30, 2014. | |
A valuation allowance has been recorded as management does not believe that it is more-likely-than-not that its 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. | |
The Company expects to incur a tax loss in the current year due to the flexibility in deducting or capitalizing current year intangible drilling costs; thus no current income taxes are anticipated to be paid. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings (Loss) Per Share | ' | |||||||||||||
Earnings (Loss) Per Share | ' | |||||||||||||
12. 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 income (loss) to preferred shareholders, common shareholders, and non-vested restricted shareholders for purposes of computing net income (loss) per share for the three and nine months ended September 30, 2014 and 2013, respectively: | ||||||||||||||
Three Months | Nine Months | |||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net income (loss) | $ | 74,597 | $ | (23,606 | ) | $ | (11,145 | ) | $ | (28,217 | ) | |||
Preferred Dividend (1) | (1,908 | ) | (2,569 | ) | (9,334 | ) | (9,254 | ) | ||||||
Net income (loss) attributable to shareholders | $ | 72,689 | $ | (26,175 | ) | $ | (20,479 | ) | $ | (37,471 | ) | |||
Participating securities - Series A Preferred Stock | (23,973 | ) | — | — | — | |||||||||
Participating securities - Non-vested Restricted Stock | (2,524 | ) | — | — | — | |||||||||
Net income (loss) attributable to common shareholders | $ | 46,192 | $ | (26,175 | ) | $ | (20,479 | ) | $ | (37,471 | ) | |||
Weighted average shares outstanding | 66,598 | 65,821 | 66,340 | 65,740 | ||||||||||
Net income (loss) per share | $ | 0.69 | $ | (0.40 | ) | $ | (0.31 | ) | $ | (0.57 | ) | |||
(1) Calculation of the preferred stock dividend is discussed in Note 10. | ||||||||||||||
The aggregate number of common shares outstanding at September 30, 2014 was 70,169,242 of which 3,520,836 were non-vested restricted shares. The aggregate number of shares of Series A Preferred Stock outstanding at September 30, 2014 was 325,000, each with a liquidation preference of $1,170 representing on an as-converted basis approximately 34,564,003 common shares based upon a conversion price of $11.00 per share. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
13. Commitments and Contingencies | |||||||||||||||||
Contractual Obligations | |||||||||||||||||
At September 30, 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 | $ | 8,575 | $ | 6,421 | $ | 2,154 | $ | — | $ | — | |||||||
Non-cancellable office lease commitments | 9,783 | 459 | 1,857 | 1,877 | 5,590 | ||||||||||||
Seismic contracts | 3,192 | 3,192 | — | — | — | ||||||||||||
Net minimum commitments | $ | 21,550 | $ | 10,072 | $ | 4,011 | $ | 1,877 | $ | 5,590 | |||||||
For the three months ended September 30, 2014 and 2013, the Company expensed $0.6 and $0.5 million, respectively, for office rent. For the nine months ended September 30, 2014 and 2013, the Company expensed $1.8 and $1.3 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 NGL, 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 $0.08 to $0.125 per gallon (subject to annual escalation). The NGL volume commitments range from 4,900 Bbls to 5,780 Bbls per day for each monthly accounting period 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 | |||||||||||||||||
The Company is involved in disputes or legal actions arising in the ordinary course of its business. Currently, it is not party to any legal proceedings that the Company believes, individually or in the aggregate, are reasonably expected to have a material adverse effect on its financial position, results of operations, or cash flows. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
14. Subsequent Events | |
Dequincy Disposition | |
On October 2, 2014, the Company executed a Purchase and Sale Agreement (“Dequincy PSA”) for the sale of the Dequincy portion of its Gulf Coast assets in Louisiana to a private buyer for total consideration of $90 million, subject to customary purchase price adjustments. The Dequincy PSA includes the sale of Midstates’ ownership interest in developed and undeveloped acreage in the Dequincy area in Beauregard and Calcasieu Parishes, Louisiana and the El Grande pipeline that Midstates constructed and owned. The consideration for the sale consists of $80 million in cash, a 10% overriding royalty interest in new wells drilled on that acreage (capped at $8 million) and future payments based on increased throughput on the El Grande pipeline (capped at $2 million). The transaction does not include Midstates’ acreage and interests in the Fleetwood area of Louisiana. The net proceeds from the sale will be used to pay down outstanding borrowings under the Company’s revolving credit facility and for general corporate purposes. The transaction is expected to close in November 2014, subject to customary closing conditions. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2014, and determined that none would have a material impact on the Company’s condensed consolidated financial statements, with the exception of ASU 2014-09, “Revenue from Contracts with Customers ” and ASU 2014-15, “Presentation of Financial Statements - Going Concern,” (both effective for annual reporting periods beginning after December 15, 2016), which the Company is still evaluating. | |
Fair_Value_Measurements_of_Fin1
Fair Value Measurements of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 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 September 30, 2014 | ||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||
in Active | Other | Unobservable | ||||||||||||
Markets | Observable | Inputs | ||||||||||||
(Level 1) | Inputs | (Level 3) | ||||||||||||
(Level 2) | ||||||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Commodity derivative oil swaps | $ | — | $ | 6,557 | $ | — | $ | 6,557 | ||||||
Commodity derivative gas swaps | — | 2,421 | — | 2,421 | ||||||||||
Commodity derivative oil collars | — | 30 | — | 30 | ||||||||||
Commodity derivative gas collars | — | 15 | — | 15 | ||||||||||
Commodity derivative differential swaps | — | 221 | — | 221 | ||||||||||
Total assets | $ | — | $ | 9,244 | $ | — | $ | 9,244 | ||||||
Liabilities: | ||||||||||||||
Commodity derivative oil swaps | $ | — | $ | 3,924 | $ | — | $ | 3,924 | ||||||
Commodity derivative gas swaps | — | 75 | — | 75 | ||||||||||
Commodity derivative gas collars | — | 6 | — | 6 | ||||||||||
Total liabilities | $ | — | $ | 4,005 | $ | — | $ | 4,005 | ||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||
in Active | Other | Unobservable | ||||||||||||
Markets | Observable | Inputs | ||||||||||||
(Level 1) | 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) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Risk Management and Derivative Instruments | ' | |||||||||||||
Schedule of the entity's open commodity derivative contract positions | ' | |||||||||||||
Hedged | Weighted-Average | |||||||||||||
Volume | Fixed Price | |||||||||||||
Oil (Bbls): | ||||||||||||||
WTI Swaps — 2014 | 1,097,000 | $ | 89.04 | |||||||||||
WTI Swaps — 2015 | 2,908,000 | $ | 89.42 | |||||||||||
WTI Collars — 2014 | 40,200 | $ | 86.49 | - | $ | 97.71 | ||||||||
WTI to LLS Basis Differential Swaps — 2014 (1) | 91,500 | $ | 5.35 | |||||||||||
Natural Gas (MMBtu): | ||||||||||||||
Swaps — 2014 (2) | 4,508,000 | $ | 4.17 | |||||||||||
Swaps — 2015 | 18,250,000 | $ | 4.13 | |||||||||||
Collars — 2014 | 194,001 | $ | 3.39 | - | $ | 4.57 | ||||||||
(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 1,519,000 MMBtus in natural gas swaps that priced during the period, but had not cash settled as of September 30, 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 September 30, 2014 and December 31, 2013, respectively (in thousands): | ||||||||||||||
Type | Balance Sheet Location (1) | September 30, 2014 | December 31, 2013 | |||||||||||
Oil Swaps | Derivative financial instruments — Current Assets | $ | 6,557 | $ | — | |||||||||
Oil Swaps | Derivative financial instruments — Current Liabilities | (3,823 | ) | (28,871 | ) | |||||||||
Oil Swaps | Derivative financial instruments — Non-Current Liabilities | (101 | ) | (3,338 | ) | |||||||||
NGL Swaps | Derivative financial instruments — Current Assets | — | 469 | |||||||||||
NGL Swaps | Derivative financial instruments — Current Liabilities | — | (74 | ) | ||||||||||
Gas Swaps | Derivative financial instruments — Current Assets | 1,985 | 469 | |||||||||||
Gas Swaps | Derivative financial instruments — Non-Current Assets | 436 | 19 | |||||||||||
Gas Swaps | Derivative financial instruments — Current Liabilities | (75 | ) | (496 | ) | |||||||||
Gas Swaps | Derivative financial instruments — Non-Current Liabilities | — | (313 | ) | ||||||||||
Oil Collars | Derivative financial instruments — Current Assets | 30 | 64 | |||||||||||
Oil Collars | Derivative financial instruments — Current Liabilities | — | (272 | ) | ||||||||||
Gas Collars | Derivative financial instruments — Current Assets | 15 | 751 | |||||||||||
Gas Collars | Derivative financial instruments — Current Liabilities | (6 | ) | (26 | ) | |||||||||
Basis Differential Swaps | Derivative financial instruments — Current Assets | 221 | 806 | |||||||||||
Total derivative fair value at period end | $ | 5,239 | $ | (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 September 30, 2014 and December 31, 2013, respectively (in thousands): | ||||||||||||||
September 30, 2014 | ||||||||||||||
Not Designated as | Balance Sheet Classification | Gross | Gross | Net Recognized | ||||||||||
ASC 815 Hedges: | Recognized | Amounts | Fair Value Assets/ | |||||||||||
Assets/ | Offset | Liabilities | ||||||||||||
Liabilities | ||||||||||||||
Derivative assets: | ||||||||||||||
Commodity contracts | Derivative financial instruments - current | $ | 8,808 | $ | 1,475 | $ | 7,333 | |||||||
Commodity contracts | Derivative financial instruments - noncurrent | 436 | — | 436 | ||||||||||
$ | 9,244 | $ | 1,475 | $ | 7,769 | |||||||||
Derivative liabilities: | ||||||||||||||
Commodity contracts | Derivative financial instruments - current | $ | 3,904 | $ | 1,475 | $ | 2,429 | |||||||
Commodity contracts | Derivative financial instruments - noncurrent | 101 | — | 101 | ||||||||||
$ | 4,005 | $ | 1,475 | $ | 2,530 | |||||||||
December 31, 2013 | ||||||||||||||
Not Designated as | Balance Sheet Classification | Gross | Gross | Net Recognized | ||||||||||
ASC 815 Hedges: | Recognized | Amounts | Fair Value Assets/ | |||||||||||
Assets/ | Offset | 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 gains (losses) recorded by the Company related to the change in fair value of the derivative instruments in gains (losses) on commodity derivative contracts - net for the periods | ' | |||||||||||||
For the Three Months | For the Nine Months | |||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Realized net losses | $ | (7,265 | ) | $ | (9,927 | ) | $ | (39,213 | ) | $ | (16,002 | ) | ||
Unrealized net gains (losses) | 58,243 | (35,369 | ) | 36,051 | (26,997 | ) | ||||||||
Gains (losses) on commodity derivative contracts - net | $ | 50,978 | $ | (45,296 | ) | $ | (3,162 | ) | $ | (42,999 | ) | |||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Property and Equipment | ' | |||||||||||||||||||||||||
Schedule of property and equipment | ' | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Oil and gas properties, on the basis of full-cost accounting: | ||||||||||||||||||||||||||
Proved properties | $ | 3,194,225 | $ | 2,817,062 | ||||||||||||||||||||||
Unevaluated properties | 125,032 | 243,599 | ||||||||||||||||||||||||
Other property and equipment | 12,805 | 11,113 | ||||||||||||||||||||||||
Less accumulated depreciation, depletion, amortization and impairment | (1,274,168 | ) | (976,880 | ) | ||||||||||||||||||||||
Net property and equipment | $ | 2,057,894 | $ | 2,094,894 | ||||||||||||||||||||||
Schedule of internal costs capitalized | ' | |||||||||||||||||||||||||
During the three and nine months ended September 30, 2014 and 2013, the Company capitalized the following amounts (in thousands): | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Internal costs capitalized to oil and gas properties (1) | $ | 2,771 | $ | 2,822 | $ | 9,159 | $ | 6,218 | ||||||||||||||||||
(1) Inclusive of $0.6 million and $0.5 million of qualifying share-based compensation expense for the three months ended September 30, 2014 and 2013, respectively. For the nine months ended September 30, 2014 and 2013, inclusive of $1.8 million and $1.1 million of qualifying share-based compensation expense, respectively. | ||||||||||||||||||||||||||
Schedule of depletion expense related to oil and gas properties | ' | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
(in thousands) | (per Boe) | (in thousands) | (per Boe) | |||||||||||||||||||||||
Depletion expense | $ | 72,337 | $ | 74,345 | $ | 23.27 | $ | 28.39 | $ | 208,864 | $ | 168,190 | $ | 24.22 | $ | 28.68 | ||||||||||
Depreciation on other property | 772 | 444 | 0.25 | 0.17 | 2,220 | 1,405 | 0.26 | 0.23 | ||||||||||||||||||
Depreciation, depletion, and amortization | $ | 73,109 | $ | 74,789 | $ | 23.52 | $ | 28.56 | $ | 211,084 | $ | 169,595 | $ | 24.48 | $ | 28.91 | ||||||||||
Schedule of adjusted allocation | ' | |||||||||||||||||||||||||
The fair value of, and the allocation to, the assets acquired and liabilities assumed in the Anadarko Basin Acquisition has been finalized and is shown in the following table (in thousands): | ||||||||||||||||||||||||||
Anadarko Basin | ||||||||||||||||||||||||||
Acquisition | ||||||||||||||||||||||||||
Oil and gas properties | ||||||||||||||||||||||||||
Proved | $ | 417,750 | ||||||||||||||||||||||||
Unevaluated | 207,606 | |||||||||||||||||||||||||
Total assets acquired | $ | 625,356 | ||||||||||||||||||||||||
Asset retirement obligations | 6,296 | |||||||||||||||||||||||||
Total liabilities assumed | $ | 6,296 | ||||||||||||||||||||||||
Net assets acquired | $ | 619,060 | ||||||||||||||||||||||||
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 had been completed on January 1, 2013 (in thousands, other than per share amounts): | ||||||||||||||||||||||||||
For the Nine Months | ||||||||||||||||||||||||||
Ended September 30, | ||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Revenues and other | $ | 378,591 | ||||||||||||||||||||||||
Net loss | (21,401 | ) | ||||||||||||||||||||||||
Preferred stock dividends | (9,254 | ) | ||||||||||||||||||||||||
Loss attributable to common shareholders | $ | (30,655 | ) | |||||||||||||||||||||||
Net loss per common share - basic and diluted | $ | (0.47 | ) |
Other_Noncurrent_Assets_Tables
Other Noncurrent Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Other Noncurrent Assets | ' | |||||||
Schedule of other noncurrent assets | ' | |||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Deferred financing costs | $ | 39,647 | $ | 44,706 | ||||
Field inventory | 6,930 | 9,682 | ||||||
Other | 211 | 209 | ||||||
Other noncurrent assets | $ | 46,788 | $ | 54,597 |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accrued Liabilities | ' | |||||||
Schedule of accrued liabilities | ' | |||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Accrued oil and gas capital expenditures | $ | 86,809 | $ | 87,202 | ||||
Accrued revenue and royalty distributions | 62,692 | 64,370 | ||||||
Accrued lease operating and workover expense | 6,846 | 8,279 | ||||||
Accrued interest | 53,833 | 21,341 | ||||||
Accrued taxes | 8,113 | 4,386 | ||||||
Other | 14,854 | 18,803 | ||||||
Accrued liabilities | $ | 233,147 | $ | 204,381 |
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Asset Retirement Obligations | ' | ||||
Schedule of changes in the Company's ARO's | ' | ||||
The following table reflects the changes in the Company’s AROs for the nine months ended September 30, 2014 (in thousands): | |||||
Asset retirement obligations at January 1, 2014 | $ | 26,308 | |||
Liabilities incurred | 991 | ||||
Revisions | — | ||||
Liabilities settled | (47 | ) | |||
Liabilities eliminated through asset sale (1) | (7,652 | ) | |||
Current period accretion expense | 1,335 | ||||
Asset retirement obligations at September 30, 2014 | $ | 20,935 | |||
(1) As a result of the Pine Prairie Disposition, AROs were reduced by approximately $7.7 million during the nine months ended September 30, 2014. See discussion of the Pine Prairie Disposition in Note 5. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Long-Term Debt | ' | |||||||
Schedule of the company's long term debt | ' | |||||||
At September 30, 2014 | At December 31, 2013 | |||||||
(in thousands) | ||||||||
Revolving credit facility, due 2018 | $ | 369,150 | $ | 401,150 | ||||
Senior notes, due 2020 | 600,000 | 600,000 | ||||||
Senior notes, due 2021 | 700,000 | 700,000 | ||||||
Long-term debt | $ | 1,669,150 | $ | 1,701,150 |
Equity_and_ShareBased_Compensa1
Equity and Share-Based Compensation (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Equity and Share-Based Compensation | ' | |||||||
Summary of changes in the number of outstanding shares | ' | |||||||
Number of Shares | ||||||||
Series A | Common | Treasury | ||||||
Preferred | Stock | Stock | ||||||
Stock | ||||||||
Share count as of December 31, 2013 | 325,000 | 68,925,745 | (118,702 | ) | ||||
Grants of restricted stock | — | 3,124,478 | — | |||||
Forfeitures of restricted stock | — | (1,444,144 | ) | — | ||||
Acquisition of treasury stock | — | — | (318,135 | ) | ||||
Share count as of September 30, 2014 | 325,000 | 70,606,079 | (436,837 | ) | ||||
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 | 3,124,478 | $ | 4.96 | |||||
Vested | (1,123,170 | ) | $ | 7.61 | ||||
Forfeited | (1,444,144 | ) | $ | 6.87 | ||||
Non-vested shares outstanding at September 30, 2014 | 3,520,836 | $ | 5.7 |
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings (Loss) Per Share | ' | |||||||||||||
Schedule of reconciliation of net income (loss) to preferred shareholders, common shareholders, and non-vested restricted shareholders for purposes of computing net income (loss) per share | ' | |||||||||||||
The following table (in thousands, except per share amounts) provides a reconciliation of net income (loss) to preferred shareholders, common shareholders, and non-vested restricted shareholders for purposes of computing net income (loss) per share for the three and nine months ended September 30, 2014 and 2013, respectively: | ||||||||||||||
Three Months | Nine Months | |||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net income (loss) | $ | 74,597 | $ | (23,606 | ) | $ | (11,145 | ) | $ | (28,217 | ) | |||
Preferred Dividend (1) | (1,908 | ) | (2,569 | ) | (9,334 | ) | (9,254 | ) | ||||||
Net income (loss) attributable to shareholders | $ | 72,689 | $ | (26,175 | ) | $ | (20,479 | ) | $ | (37,471 | ) | |||
Participating securities - Series A Preferred Stock | (23,973 | ) | — | — | — | |||||||||
Participating securities - Non-vested Restricted Stock | (2,524 | ) | — | — | — | |||||||||
Net income (loss) attributable to common shareholders | $ | 46,192 | $ | (26,175 | ) | $ | (20,479 | ) | $ | (37,471 | ) | |||
Weighted average shares outstanding | 66,598 | 65,821 | 66,340 | 65,740 | ||||||||||
Net income (loss) per share | $ | 0.69 | $ | (0.40 | ) | $ | (0.31 | ) | $ | (0.57 | ) | |||
(1) Calculation of the preferred stock dividend is discussed in Note 10. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
Schedule of contractual obligations for drilling contracts, long-term operating leases and seismic contracts | ' | ||||||||||||||||
At September 30, 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 | $ | 8,575 | $ | 6,421 | $ | 2,154 | $ | — | $ | — | |||||||
Non-cancellable office lease commitments | 9,783 | 459 | 1,857 | 1,877 | 5,590 | ||||||||||||
Seismic contracts | 3,192 | 3,192 | — | — | — | ||||||||||||
Net minimum commitments | $ | 21,550 | $ | 10,072 | $ | 4,011 | $ | 1,877 | $ | 5,590 |
Organization_and_Business_Deta
Organization and Business (Details) (USD $) | 9 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | 1-May-14 | Mar. 05, 2014 | 31-May-13 | 31-May-13 |
item | Pine Prairie field area of Evangeline Parish, Louisiana | Pine Prairie field area of Evangeline Parish, Louisiana | 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 | ' | ' | ' | 700 | 700 |
Interest rate (as a percent) | ' | ' | ' | 9.25% | 9.25% |
Purchase price of subject to standard post-closing adjustments received in cash | ' | $147.50 | $170 | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Number of reportable segments | 1 | ' | ' | ' | ' |
Fair_Value_Measurements_of_Fin2
Fair Value Measurements of Financial Instruments (Details) (Recurring, Commodity Derivatives, USD $) | Sep. 30, 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 | $9,244 | $2,578 |
Liabilities: | ' | ' |
Total liabilities | 4,005 | 33,390 |
Significant Other Observable Inputs (Level 2) | Swaps | NGL | ' | ' |
Assets: | ' | ' |
Total assets | ' | 469 |
Liabilities: | ' | ' |
Total liabilities | ' | 74 |
Significant Other Observable Inputs (Level 2) | Swaps | Gas | ' | ' |
Assets: | ' | ' |
Total assets | 2,421 | 488 |
Liabilities: | ' | ' |
Total liabilities | 75 | 809 |
Significant Other Observable Inputs (Level 2) | Swaps | Oil | ' | ' |
Assets: | ' | ' |
Total assets | 6,557 | ' |
Liabilities: | ' | ' |
Total liabilities | 3,924 | 32,209 |
Significant Other Observable Inputs (Level 2) | Collars | Gas | ' | ' |
Assets: | ' | ' |
Total assets | 15 | 751 |
Liabilities: | ' | ' |
Total liabilities | 6 | 26 |
Significant Other Observable Inputs (Level 2) | Collars | Oil | ' | ' |
Assets: | ' | ' |
Total assets | 30 | 64 |
Liabilities: | ' | ' |
Total liabilities | ' | 272 |
Significant Other Observable Inputs (Level 2) | Basis Differential Swaps | ' | ' |
Assets: | ' | ' |
Total assets | 221 | 806 |
Total | ' | ' |
Assets: | ' | ' |
Total assets | 9,244 | 2,578 |
Liabilities: | ' | ' |
Total liabilities | 4,005 | 33,390 |
Total | Swaps | NGL | ' | ' |
Assets: | ' | ' |
Total assets | ' | 469 |
Liabilities: | ' | ' |
Total liabilities | ' | 74 |
Total | Swaps | Gas | ' | ' |
Assets: | ' | ' |
Total assets | 2,421 | 488 |
Liabilities: | ' | ' |
Total liabilities | 75 | 809 |
Total | Swaps | Oil | ' | ' |
Assets: | ' | ' |
Total assets | 6,557 | ' |
Liabilities: | ' | ' |
Total liabilities | 3,924 | 32,209 |
Total | Collars | Gas | ' | ' |
Assets: | ' | ' |
Total assets | 15 | 751 |
Liabilities: | ' | ' |
Total liabilities | 6 | 26 |
Total | Collars | Oil | ' | ' |
Assets: | ' | ' |
Total assets | 30 | 64 |
Liabilities: | ' | ' |
Total liabilities | ' | 272 |
Total | Basis Differential Swaps | ' | ' |
Assets: | ' | ' |
Total assets | $221 | $806 |
Risk_Management_and_Derivative2
Risk Management and Derivative Instruments (Details) (Not designated as Hedging Instrument, Commodity Derivatives, USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
bbl | |
Maximum | ' |
Risk Management and Derivative Instruments | ' |
Maximum loss exposure under commodity derivative contracts on failure of the entity's counterparty's performance | ($7.80) |
Oil | WTI | Swaps | 2014 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 1,097,000 |
Weighted-Average Fixed Price | 89.04 |
Oil | WTI | Swaps | 2015 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 2,908,000 |
Weighted-Average Fixed Price | 89.42 |
Oil | WTI | Collars | 2014 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 40,200 |
Oil | WTI | Collars | 2014 | Minimum | ' |
Risk Management and Derivative Instruments | ' |
Weighted-Average Fixed Price | 86.49 |
Oil | WTI | Collars | 2014 | Maximum | ' |
Risk Management and Derivative Instruments | ' |
Weighted-Average Fixed Price | 97.71 |
Oil | WTI to LLS | Basis Differential Swaps | 2014 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 91,500 |
Weighted-Average Fixed Price | 5.35 |
Natural Gas | Swaps | 2014 | ' |
Risk Management and Derivative Instruments | ' |
Hedged Volume | 4,508,000 |
Weighted-Average Fixed Price | 4.17 |
Hedged Volume, not settled in cash | 1,519,000 |
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 | 194,001 |
Natural Gas | Collars | 2014 | Minimum | ' |
Risk Management and Derivative Instruments | ' |
Weighted-Average Fixed Price | 3.39 |
Natural Gas | Collars | 2014 | Maximum | ' |
Risk Management and Derivative Instruments | ' |
Weighted-Average Fixed Price | 4.57 |
Risk_Management_and_Derivative3
Risk Management and Derivative Instruments (Details 2) (Not designated as Hedging Instrument, Commodity Derivatives, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Risk Management and Derivative Instruments | ' | ' |
Total derivative fair value | $5,239 | ($30,812) |
Derivative assets: | ' | ' |
Gross Recognized Assets | 9,244 | 2,578 |
Gross Amounts Offset, Assets | 1,475 | 1,859 |
Net Recognized Fair Value Assets | 7,769 | 719 |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | 4,005 | 33,390 |
Gross Amounts Offset, Liabilities | 1,475 | 1,859 |
Net Recognized Fair Value Liabilities | 2,530 | 31,531 |
Current Assets | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 8,808 | 2,559 |
Gross Amounts Offset, Assets | 1,475 | 1,859 |
Net Recognized Fair Value Assets | 7,333 | 700 |
Non-Current Assets | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 436 | 19 |
Net Recognized Fair Value Assets | 436 | 19 |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | 101 | ' |
Current Liabilities | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | 3,904 | 29,739 |
Gross Amounts Offset, Liabilities | 1,475 | 1,859 |
Net Recognized Fair Value Liabilities | 2,429 | 27,880 |
Non-Current Liabilities | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | ' | 3,651 |
Net Recognized Fair Value Liabilities | 101 | 3,651 |
Swaps | Current Assets | Oil | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 6,557 | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | 6,557 | ' |
Swaps | Current Assets | NGL | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | ' | 469 |
Swaps | Current Assets | Gas | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 1,985 | 469 |
Swaps | Non-Current Assets | Gas | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 436 | 19 |
Swaps | Current Liabilities | Oil | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | -3,823 | -28,871 |
Swaps | Current Liabilities | NGL | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | ' | -74 |
Swaps | Current Liabilities | Gas | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | -75 | -496 |
Swaps | Non-Current Liabilities | Oil | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | -101 | -3,338 |
Swaps | Non-Current Liabilities | Gas | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | ' | -313 |
Collars | Current Assets | Oil | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 30 | 64 |
Collars | Current Assets | Gas | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | 15 | 751 |
Collars | Current Liabilities | Oil | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | ' | -272 |
Collars | Current Liabilities | Gas | ' | ' |
Derivative liabilities: | ' | ' |
Gross Recognized Liabilities | -6 | -26 |
Basis Differential Swaps | Current Assets | ' | ' |
Derivative assets: | ' | ' |
Gross Recognized Assets | $221 | $806 |
Risk_Management_and_Derivative4
Risk Management and Derivative Instruments (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Gains (losses) on Commodity Derivative Contracts | ' | ' | ' | ' |
Realized net losses | ' | ' | $39,213 | $16,002 |
Gain (losses) on commodity derivative contracts - net | 50,978 | -45,296 | -3,162 | -42,999 |
Not designated as Hedging Instrument | ' | ' | ' | ' |
Gains (losses) on Commodity Derivative Contracts | ' | ' | ' | ' |
Realized net losses | -7,265 | -9,927 | -39,213 | -16,002 |
Unrealized net gains (losses) | 58,243 | -35,369 | 36,051 | -26,997 |
Gain (losses) on commodity derivative contracts - net | $50,978 | ($45,296) | ($3,162) | ($42,999) |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Property and Equipment | ' | ' | ' | ' | ' |
Proved properties | $3,194,225,000 | ' | $3,194,225,000 | ' | $2,817,062,000 |
Unevaluated properties | 125,032,000 | ' | 125,032,000 | ' | 243,599,000 |
Other property and equipment | 12,805,000 | ' | 12,805,000 | ' | 11,113,000 |
Less accumulated depreciation, depletion, amortization and impairment | -1,274,168,000 | ' | -1,274,168,000 | ' | -976,880,000 |
Net property and equipment | 2,057,894,000 | ' | 2,057,894,000 | ' | 2,094,894,000 |
Other information | ' | ' | ' | ' | ' |
Depletion expense | 72,337,000 | 74,345,000 | 208,864,000 | 168,190,000 | ' |
Depreciation on other property | 772,000 | 444,000 | 2,220,000 | 1,405,000 | ' |
Depreciation, depletion, and amortization | 73,109,000 | 74,789,000 | 211,084,000 | 169,595,000 | ' |
Depletion expense (per Boe) | 23.27 | 28.39 | 24.22 | 28.68 | ' |
Depreciation on other property (per BOE) | 0.25 | 0.17 | 0.26 | 0.23 | ' |
Depreciation, depletion, and amortization (per BOE) | 23.52 | 28.56 | 24.48 | 28.91 | ' |
Eagle Property Acquisition | ' | ' | ' | ' | ' |
Other information | ' | ' | ' | ' | ' |
Decrease primarily due to transfers | ' | ' | 51,500,000 | ' | ' |
Anadarko Basin Acquisition | ' | ' | ' | ' | ' |
Property and Equipment | ' | ' | ' | ' | ' |
Proved properties | 417,750,000 | ' | 417,750,000 | ' | ' |
Other information | ' | ' | ' | ' | ' |
Decrease primarily due to transfers | ' | ' | 63,200,000 | ' | ' |
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 to oil and gas properties | 2,771,000 | 2,822,000 | 9,159,000 | 6,218,000 | ' |
Capitalized qualifying share-based compensation expense | 600,000 | 500,000 | 1,800,000 | 1,100,000 | ' |
Ceiling limit of capitalized cost for determining impairment to oil and gas properties (as a percent) | 5.00% | ' | 5.00% | ' | ' |
Impairment of oil and gas properties after tax | ' | ' | $83,500,000 | ' | ' |
Property_and_Equipment_Details1
Property and Equipment (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 25, 2014 | Sep. 30, 2014 | 1-May-14 | Mar. 05, 2014 | 31-May-13 | 1-May-14 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-13 | |
PetroQuest | PetroQuest | Pine Prairie field area of Evangeline Parish, Louisiana | Pine Prairie field area of Evangeline Parish, Louisiana | 9.25% senior unsecured notes | Credit Facility | Anadarko Basin Acquisition | Anadarko Basin Acquisition | Anadarko Basin Acquisition | Anadarko Basin Acquisition | Anadarko Basin Acquisition | Anadarko Basin Acquisition | ||||||
Exploration agreement | Exploration agreement | Pine Prairie field area of Evangeline Parish, Louisiana | Unaudited pro forma | 9.25% senior unsecured notes | |||||||||||||
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% |
Oil and gas properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proved properties | 3,194,225,000 | ' | 3,194,225,000 | ' | 2,817,062,000 | ' | ' | ' | ' | ' | ' | 417,750,000 | ' | 417,750,000 | ' | ' | ' |
Unevaluated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 207,606,000 | ' | 207,606,000 | ' | ' | ' |
Total assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 625,356,000 | ' | 625,356,000 | ' | ' | ' |
Asset retirement obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,296,000 | ' | 6,296,000 | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,296,000 | ' | 6,296,000 | ' | ' | ' |
Net assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 619,060,000 | ' | 619,060,000 | ' | ' | ' |
Revenues | 224,761,000 | 111,505,000 | 517,413,000 | 308,535,000 | ' | ' | ' | ' | ' | ' | ' | 45,800,000 | 45,600,000 | 148,200,000 | 59,800,000 | ' | ' |
Unaudited Pro forma information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 378,591,000 | ' |
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -21,401,000 | ' |
Preferred stock dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9,254,000 | ' |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | 46,192,000 | -26,175,000 | -20,479,000 | -37,471,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -30,655,000 | ' |
Net income (loss) per common share - basic and diluted (in dollars per share) | $0.69 | ($0.40) | ($0.31) | ($0.57) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.47) | ' |
Purchase price of subject to standard post-closing adjustments received in cash | ' | ' | ' | ' | ' | ' | ' | 147,500,000 | 170,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 131,000,000 | ' | ' | ' | ' | ' | ' |
Undivided right, title and interest (as a percent) | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional cash consideration | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional non-interest consideration | ' | ' | ' | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other accounts receivable | $11,120,000 | ' | $11,120,000 | ' | $1,090,000 | ' | $7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other_Noncurrent_Assets_Detail
Other Noncurrent Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Other Noncurrent Assets | ' | ' | ' | ' | ' |
Deferred financing costs | $39,647,000 | ' | $39,647,000 | ' | $44,706,000 |
Field inventory | 6,930,000 | ' | 6,930,000 | ' | 9,682,000 |
Other | 211,000 | ' | 211,000 | ' | 209,000 |
Other noncurrent assets | 46,788,000 | ' | 46,788,000 | ' | 54,597,000 |
Adjustments amount of field inventory | ' | ' | 5,200,000 | ' | ' |
Additional field inventory purchased | ' | ' | 2,400,000 | ' | ' |
Gain (loss) on sale of or market value adjustments to inventory | $2,300,000 | $600,000 | $3,300,000 | $600,000 | ' |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued liabilities | ' | ' |
Accrued oil and gas capital expenditures | $86,809 | $87,202 |
Accrued revenue and royalty distributions | 62,692 | 64,370 |
Accrued lease operating and workover expense | 6,846 | 8,279 |
Accrued interest | 53,833 | 21,341 |
Accrued taxes | 8,113 | 4,386 |
Other | 14,854 | 18,803 |
Accrued liabilities | $233,147 | $204,381 |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Asset Retirement Obligations | ' | ' | ' | ' |
AROs | $20,935,000 | ' | $20,935,000 | ' |
Changes in Company's asset retirement obligations | ' | ' | ' | ' |
Asset retirement obligations at the beginning of the period | ' | ' | 26,308,000 | ' |
Liabilities incurred | ' | ' | 991,000 | ' |
Liabilities settled | ' | ' | -47,000 | ' |
Liabilities eliminated through asset sale | ' | ' | -7,652,000 | ' |
Current period accretion expense | 406,000 | 421,000 | 1,335,000 | 988,000 |
Asset retirement obligations at the end of the period | 20,935,000 | ' | 20,935,000 | ' |
Liabilities reduced in Prairie Disposition | ' | ' | $7,700,000 | ' |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | 31-May-13 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 02, 2012 | 31-May-13 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 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 | 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 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 | Credit Facility | Credit Facility | Credit Facility | |||
LIBOR Loans | Base rate loans | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | item | Minimum | Maximum | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | Credit Facility Amendment - March 28, 2014 | ||||||||||||||||||||
item | Fiscal quarter ending September 30, 2014 | Fiscal quarter ending December 31, 2014 | Each fiscal quarter thereafter | ||||||||||||||||||||||||||
Pine Prairie field area of Evangeline Parish, Louisiana | Pine Prairie field area of Evangeline Parish, Louisiana | Pine Prairie field area of Evangeline Parish, Louisiana | |||||||||||||||||||||||||||
Long-Term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | $369,150,000 | $401,150,000 | ' | ' | ' | $600,000,000 | ' | $600,000,000 | ' | $600,000,000 | ' | ' | $700,000,000 | ' | $700,000,000 | ' | $700,000,000 | ' | ' | ' |
Total long-term debt | 1,669,150,000 | 1,701,150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base | ' | ' | 525,000,000 | 475,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, description | ' | ' | ' | ' | 'LIBOR | 'base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.80% | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base utilization (as a percent) | ' | ' | ' | ' | ' | ' | 2.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt to EBITDA ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 475.00% | 475.00% | 400.00% |
Actual current ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Debt to EBITDA | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of the Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $619,500,000 | ' | $619,500,000 | ' | ' | ' | ' | $696,500,000 | ' | $696,500,000 | ' | ' | ' | ' | ' |
Effective annual interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.10% | 11.10% | 11.10% | 11.10% | ' | ' | ' | 9.60% | 9.40% | 9.60% | 9.50% | ' | ' | ' | ' |
Equity_and_ShareBased_Compensa2
Equity and Share-Based Compensation (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 30, 2014 | Sep. 30, 2014 | Sep. 28, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 30, 2014 | Sep. 30, 2014 | Mar. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 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 | 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 | Series A Preferred Stock | Series A Preferred Stock | ||||||||
Minimum | Maximum | Minimum | Minimum | Maximum | Maximum | |||||||||||
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) | ' | ' | $1,170 | $1,170 | $1,125 | ' | $1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate of interest for preferred stock (as a percent) | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion rate for preferred stock (in dollars per share) | ' | ' | $11 | $11 | ' | $13.50 | ' | $11 | $13.50 | ' | ' | ' | ' | ' | ' | ' |
Period required to convert preferred stock into common stock | ' | ' | ' | ' | ' | '15 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends payable | ' | ' | $13 | $13 | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares of common stock to be issued upon conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,005,985 | 1,083,202 | 3,689,164 | 1,329,385 | ' | ' |
Preferred stock dividends paid through adjustment to the liquidation preference | ' | ' | $1.90 | $9.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Common Shares Issuable Upon Conversion | ' | ' | 664,692 | 1,968,512 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in number of outstanding shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share count at the beginning of the period (in shares) | ' | ' | ' | 325,000 | ' | ' | ' | ' | ' | 68,925,745 | ' | ' | ' | ' | ' | -118,702 |
Grants of restricted stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,124,478 | ' | ' | ' | ' | ' | ' |
Forfeitures of restricted stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,444,144 | ' | ' | ' | ' | ' | ' |
Acquisition of treasury stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -318,135 |
Share count at the end of the period (in shares) | ' | ' | 325,000 | 325,000 | ' | ' | ' | ' | ' | 70,606,079 | ' | ' | ' | ' | ' | -436,837 |
Equity_and_ShareBased_Compensa3
Equity and Share-Based Compensation (Details 2) (Incentive units, USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Incentive units | ' |
Restricted Stock Awards | ' |
Incentive units issued | 1,113 |
Stock-based compensation expense (in dollars) | $0 |
Equity_and_ShareBased_Compensa4
Equity and Share-Based Compensation (Details 3) (USD $) | 9 Months Ended | 9 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | 27-May-14 | Apr. 20, 2012 | Sep. 30, 2014 | Sep. 30, 2014 |
Restricted stock awards | LTIP | LTIP | LTIP | LTIP | LTIP | |
Restricted stock awards | Restricted stock awards | |||||
Directors | ||||||
Restricted Stock Awards | ' | ' | ' | ' | ' | ' |
Number of shares registered for future issuance | ' | 8,638,435 | 8,638,435 | 6,563,435 | ' | ' |
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) | 3,124,478 | ' | ' | ' | ' | ' |
Vested (in shares) | -1,123,170 | ' | ' | ' | ' | ' |
Forfeited (in shares) | -1,444,144 | ' | ' | ' | ' | ' |
Non-vested shares outstanding at the end of the period | 3,520,836 | ' | ' | ' | ' | ' |
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) | $4.96 | ' | ' | ' | ' | ' |
Vested (in dollars per share) | $7.61 | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | $6.87 | ' | ' | ' | ' | ' |
Non-vested shares outstanding at the end of the period (in dollars per share) | $5.70 | ' | ' | ' | ' | ' |
Additional information | ' | ' | ' | ' | ' | ' |
Unrecognized expense, adjusted for estimated forfeitures (in dollars) | $14.80 | ' | ' | ' | ' | ' |
Weighted-average period for over which unrecognized expense will be recognized | '2 years 1 month 6 days | ' | ' | ' | ' | ' |
Shares available for issuance | ' | 3,666,709 | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Income Taxes | ' |
Provision for federal or state income tax prior to company reorganization | $0 |
Additional disclosure | ' |
Effective annual tax rate (as a percent) | 0.90% |
Federal statutory rate (as a percent) | 35.00% |
Valuation allowance recorded in light of the impairment of oil and gas properties | 2.2 |
Valuation allowance | 48.1 |
Current income taxes | $0 |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Earnings (Loss) Per Share | ' | ' | ' | ' | ' |
Net income (loss) | $74,597 | ($23,606) | ($11,146) | ($28,217) | ' |
Preferred Dividend | -1,908 | -2,569 | -9,334 | -9,254 | ' |
Net income (loss) attributable to shareholders | 72,689 | -26,175 | -20,479 | -37,471 | ' |
Participating securities - Series A Preferred Stock | -23,973 | ' | ' | ' | ' |
Participating securities - Non-vested Restricted Stock | -2,524 | ' | ' | ' | ' |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $46,192 | ($26,175) | ($20,479) | ($37,471) | ' |
Weighted average shares outstanding (in shares) | 66,598,000 | 65,821,000 | 66,340,000 | 65,740,000 | ' |
Net income (loss) per share (in dollars per share) | $0.69 | ($0.40) | ($0.31) | ($0.57) | ' |
Aggregate number of common shares outstanding | 70,169,242 | ' | 70,169,242 | ' | 68,807,043 |
Equivalent number of common shares after conversion of Series A preferred stock | ' | ' | 34,564,003 | ' | ' |
Non-vested Restricted Stock | ' | ' | ' | ' | ' |
Earnings (Loss) Per Share | ' | ' | ' | ' | ' |
Aggregate number of common shares outstanding | 3,520,836 | ' | 3,520,836 | ' | ' |
Series A Preferred Stock | ' | ' | ' | ' | ' |
Earnings (Loss) Per Share | ' | ' | ' | ' | ' |
Preferred stock, shares outstanding | 325,000 | ' | 325,000 | ' | 325,000 |
Liquidation value (in dollars per share) | $1,170 | ' | $1,170 | ' | ' |
Conversion price (in dollars per share) | $11 | ' | $11 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net minimum commitments | ' | ' | ' | ' |
Total | $21,550,000 | ' | $21,550,000 | ' |
2014 | 10,072,000 | ' | 10,072,000 | ' |
2015 | 4,011,000 | ' | 4,011,000 | ' |
2016 | 1,877,000 | ' | 1,877,000 | ' |
2017 and beyond | 5,590,000 | ' | 5,590,000 | ' |
Office rent | 600,000 | 500,000 | 1,800,000 | 1,300,000 |
Drilling contracts | ' | ' | ' | ' |
Net minimum commitments | ' | ' | ' | ' |
Total | 8,575,000 | ' | 8,575,000 | ' |
2014 | 6,421,000 | ' | 6,421,000 | ' |
2015 | 2,154,000 | ' | 2,154,000 | ' |
Non-cancellable office lease commitments | ' | ' | ' | ' |
Net minimum commitments | ' | ' | ' | ' |
Total | 9,783,000 | ' | 9,783,000 | ' |
2014 | 459,000 | ' | 459,000 | ' |
2015 | 1,857,000 | ' | 1,857,000 | ' |
2016 | 1,877,000 | ' | 1,877,000 | ' |
2017 and beyond | 5,590,000 | ' | 5,590,000 | ' |
Seismic contracts | ' | ' | ' | ' |
Net minimum commitments | ' | ' | ' | ' |
Total | 3,192,000 | ' | 3,192,000 | ' |
2014 | $3,192,000 | ' | $3,192,000 | ' |
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) | ' | ' | 0.08 | ' |
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 | ' | 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 | ' | 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 | 4,900 | ' | 4,900 | ' |
Gas transportation gathering and processing contract | NGL | Maximum | ' | ' | ' | ' |
Net minimum commitments | ' | ' | ' | ' |
Volume commitments per day over the remaining term of the contract | 5,780 | ' | 5,780 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Oct. 02, 2014 | Sep. 30, 2014 |
Dequincy PSA | PetroQuest | |
Subsequent event | Exploration agreement | |
Subsequent Event | ' | ' |
Total consideration | $90 | ' |
Cash consideration | 80 | 3 |
Overriding royalty interest (as a percent) | 10.00% | ' |
Overriding royalty interest | 8 | ' |
Overriding royalty interest future payments based on increased throughput | $2 | ' |