Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 09, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | Midstates Petroleum Company, Inc. | |
Entity Central Index Key | 1,533,924 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 25,173,346 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 76,548 | $ 76,838 |
Accounts receivable: | ||
Oil and gas sales | 29,776 | 36,988 |
Joint interest billing | 3,193 | 4,281 |
Other | 630 | 2,456 |
Commodity derivative contracts | 2,896 | |
Other current assets | 1,821 | 3,326 |
Total current assets | 114,864 | 123,889 |
Oil and gas properties, on the basis of full-cost accounting: | ||
Proved properties | 709,647 | 573,150 |
Unproved properties not being amortized | 26,178 | 65,080 |
Other property and equipment | 6,543 | 6,339 |
Less accumulated depreciation, depletion and amortization | (59,349) | (12,974) |
Net property and equipment | 683,019 | 631,595 |
OTHER NONCURRENT ASSETS | 7,156 | 5,455 |
TOTAL | 805,039 | 760,939 |
CURRENT LIABILITIES: | ||
Accounts payable | 9,480 | 2,521 |
Accrued liabilities | 46,987 | 53,731 |
Total current liabilities | 56,467 | 56,252 |
LONG-TERM LIABILITIES: | ||
Asset retirement obligations | 14,039 | 14,200 |
Commodity derivative contracts | 278 | |
Long-term debt | 128,059 | 128,059 |
Other long-term liabilities | 599 | 614 |
Total long-term liabilities | 142,975 | 142,873 |
COMMITMENTS AND CONTINGENCIES (Note 14) | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued or outstanding at September 30, 2017 and December 31, 2016 | ||
Warrants, 6,625,554 warrants outstanding at September 30, 2017 and December 31, 2016 | 37,329 | 37,329 |
Common stock, $0.01 par value, 250,000,000 shares authorized; 25,098,834 shares issued and 25,065,425 shares outstanding at September 30, 2017 and 24,994,867 shares issued and outstanding at December 31, 2016 | 251 | 250 |
Treasury stock | (626) | |
Additional paid-in-capital | 522,823 | 514,305 |
Retained earnings | 45,820 | 9,930 |
Total stockholders' equity | 605,597 | 561,814 |
TOTAL | $ 805,039 | $ 760,939 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Warrants outstanding | 6,625,554 | 6,625,554 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 25,098,834 | 24,994,867 |
Common stock, shares outstanding | 25,065,425 | 24,994,867 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUES : | ||||
Oil sales | $ 27,190 | $ 85,497 | ||
Natural gas liquid sales | 10,656 | 31,580 | ||
Natural gas sales | 13,970 | 46,321 | ||
Gains (losses) on commodity derivative contracts - net | (3,591) | 8,767 | ||
Other | 1,490 | 3,244 | ||
Total revenues | 49,715 | 175,409 | ||
EXPENSES : | ||||
Lease operating and workover | 15,653 | 48,064 | ||
Gathering and transportation | 3,699 | 11,027 | ||
Severance and other taxes | 2,352 | 6,168 | ||
Asset retirement accretion | 274 | 833 | ||
Depreciation, depletion, and amortization | 15,170 | 46,471 | ||
General and administrative | 7,255 | 23,102 | ||
Total expenses | 44,403 | 135,665 | ||
OPERATING INCOME (LOSS) | 5,312 | 39,744 | ||
OTHER EXPENSE: | ||||
Interest expense - net of amounts capitalized (excludes interest expense of $47.6 million and $79.3 million on senior and secured notes subject to compromise for the three and nine months ended September 30, 2016, respectively) | (1,649) | (3,854) | ||
Total other expense | (1,649) | (3,854) | ||
INCOME (LOSS) BEFORE TAXES | 3,663 | 35,890 | ||
Income tax expense | 0 | |||
NET INCOME (LOSS) | 3,663 | 35,890 | ||
Participating securities-non-vested restricted stock | (82) | (932) | ||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 3,581 | $ 34,958 | ||
Basic and diluted net income (loss) per share attributable to common shareholders | $ 0.14 | $ 1.39 | ||
Basic and diluted weighted average number of common shares outstanding (Note 12) | 25,116 | 25,074 | ||
Predecessor | ||||
REVENUES : | ||||
Oil sales | $ 35,584 | $ 104,832 | ||
Natural gas liquid sales | 8,939 | 25,073 | ||
Natural gas sales | 17,676 | 44,486 | ||
Other | 1,994 | 4,322 | ||
Total revenues | 64,193 | 178,713 | ||
EXPENSES : | ||||
Lease operating and workover | 17,650 | 49,520 | ||
Gathering and transportation | 4,296 | 13,428 | ||
Severance and other taxes | 1,788 | 4,776 | ||
Asset retirement accretion | 452 | 1,316 | ||
Depreciation, depletion, and amortization | 15,756 | 59,229 | ||
Impairment in carrying value of oil and gas properties | 33,887 | 224,584 | ||
General and administrative | 3,308 | 19,093 | ||
Debt restructuring costs and advisory fees | 7,589 | |||
Total expenses | 77,137 | 379,535 | ||
OPERATING INCOME (LOSS) | (12,944) | (200,822) | ||
OTHER EXPENSE: | ||||
Interest income | 81 | |||
Interest expense - net of amounts capitalized (excludes interest expense of $47.6 million and $79.3 million on senior and secured notes subject to compromise for the three and nine months ended September 30, 2016, respectively) | (2,668) | (65,719) | ||
Reorganization items, net | (22,772) | 57,764 | ||
Total other expense | (25,440) | (7,874) | ||
INCOME (LOSS) BEFORE TAXES | (38,384) | (208,696) | ||
NET INCOME (LOSS) | (38,384) | (208,696) | ||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (38,384) | $ (208,696) | ||
Basic and diluted net income (loss) per share attributable to common shareholders | $ (3.60) | $ (19.61) | ||
Basic and diluted weighted average number of common shares outstanding (Note 12) | 10,657 | 10,644 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Predecessor | ||
interest expense on senior and secured notes | $ 47.6 | $ 79.3 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY/(DEFICIT) - USD ($) $ in Thousands | Common Stock | Warrants | Treasury Stock | Additional Paid-in-Capital | Retained Earnings (Deficit) | Total |
Balance (Predecessor) at Dec. 31, 2015 | $ 110 | $ (3,081) | $ 888,247 | $ (2,211,342) | $ (1,326,066) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Share-based compensation | Predecessor | (1) | 1,726 | 1,725 | |||
Acquisition of treasury stock | Predecessor | (53) | (53) | ||||
Net income (loss) | Predecessor | (208,696) | (208,696) | ||||
Balance (Predecessor) at Sep. 30, 2016 | 109 | (3,134) | 889,973 | (2,420,038) | (1,533,090) | |
Balance at Dec. 31, 2016 | 250 | $ 37,329 | 514,305 | 9,930 | 561,814 | |
Increase (Decrease) in Stockholders' Equity | ||||||
Share-based compensation | 1 | 8,518 | 8,519 | |||
Acquisition of treasury stock | (626) | (626) | ||||
Net income (loss) | 35,890 | 35,890 | ||||
Balance at Sep. 30, 2017 | $ 251 | $ 37,329 | $ (626) | $ 522,823 | $ 45,820 | $ 605,597 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income (loss) | $ 35,890 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Gains on commodity derivative contracts - net | (8,767) | |||
Net cash received for commodity derivative contracts not designated as hedging instruments | 6,149 | |||
Asset retirement accretion | 833 | |||
Depreciation, depletion, and amortization | 46,471 | |||
Share-based compensation, net of amounts capitalized to oil and gas properties | 7,102 | |||
Amortization of deferred financing costs | 277 | |||
Change in operating assets and liabilities: | ||||
Accounts receivable - oil and gas sales | 4,929 | |||
Accounts receivable - JIB and other | 2,641 | |||
Other current and noncurrent assets | (98) | |||
Accounts payable | 1,392 | |||
Accrued liabilities | (7,381) | |||
Other | (121) | |||
Net cash provided by operating activities | 89,317 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Investment in property and equipment | (92,841) | |||
Proceeds from the sale of oil and gas equipment and properties | 4,235 | |||
Net cash used in investing activities | (88,606) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Deferred financing costs | (375) | |||
Acquisition of treasury stock | (626) | |||
Net cash (used in) provided by financing activities | (1,001) | |||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (290) | |||
Cash and cash equivalents, beginning of period | 76,838 | |||
Cash and cash equivalents, end of period | 76,548 | $ 76,838 | ||
SUPPLEMENTAL INFORMATION: | ||||
Non-cash transactions - investments in property and equipment accrued - not paid | 19,865 | |||
Cash paid for interest, net of capitalized interest of $2.1 million for the nine months ended September 30, 2017 (no capitalized interest for the nine months ended September 30, 2016) | $ 3,708 | |||
Predecessor | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income (loss) | $ (208,696) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Asset retirement accretion | $ 452 | 1,316 | ||
Depreciation, depletion, and amortization | 15,756 | 59,229 | ||
Impairment in carrying value of oil and gas properties | 33,887 | 224,584 | ||
Share-based compensation, net of amounts capitalized to oil and gas properties | 1,275 | |||
Amortization of deferred financing costs | 4,495 | |||
Paid-in-kind interest expense | 3,531 | |||
Amortization of deferred gain on debt restructuring | (8,246) | |||
Operating lease abandonment | 1,574 | |||
Non-cash reorganization items | (70,489) | |||
Change in operating assets and liabilities: | ||||
Accounts receivable - oil and gas sales | (311) | |||
Accounts receivable - JIB and other | 21,411 | |||
Other current and noncurrent assets | (5,572) | |||
Accounts payable | 870 | |||
Accrued liabilities | 54,520 | |||
Other | (1,247) | |||
Net cash provided by operating activities | 78,244 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Investment in property and equipment | (129,072) | |||
Net cash used in investing activities | (129,072) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from revolving credit facility | 249,384 | |||
Acquisition of treasury stock | (53) | |||
Net cash (used in) provided by financing activities | 249,331 | |||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 198,503 | |||
Cash and cash equivalents, beginning of period | 81,093 | $ 81,093 | ||
Cash and cash equivalents, end of period | $ 279,596 | 279,596 | ||
SUPPLEMENTAL INFORMATION: | ||||
Non-cash transactions - investments in property and equipment accrued - not paid | 12,238 | |||
Cash paid for interest, net of capitalized interest of $2.1 million for the nine months ended September 30, 2017 (no capitalized interest for the nine months ended September 30, 2016) | 5,821 | |||
Cash paid for reorganization items | $ 12,725 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Capitalized interest | $ 2.1 | |
Predecessor | ||
Capitalized interest | $ 0 |
Organization and Business
Organization and Business | 9 Months Ended |
Sep. 30, 2017 | |
Organization and Business | |
Organization and Business | 1. Organization and Business Midstates Petroleum Company, Inc. engages in the business of exploring and drilling for, and the production of, oil, natural gas liquids (“NGLs”) and natural gas in Oklahoma and Texas. 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”). The terms “Company,” “we,” “us,” “our,” and similar terms refer to Midstates Petroleum Company, Inc. and its subsidiary. The Company operates a significant portion of its oil and natural gas properties. The Company’s management evaluates performance based on one reportable segment as all of its operations are located in the United States and, therefore, it maintains one cost center. On April 30, 2016, the Company filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). The Company’s Chapter 11 cases (the “Chapter 11 Cases”) were jointly administered under the case styled In re Midstates Petroleum Company, Inc., et al., Case No. 16-32237 . On September 28, 2016, the Bankruptcy Court entered the Findings of Fact, Conclusions of Law, and Order Confirming Debtors’ First Amended Joint Chapter 11 Plan of Reorganization of Midstates Petroleum Company, Inc. and its Debtor Affiliate (the “Confirmation Order”), which approved and confirmed the First Amended Joint Chapter 11 Plan of Reorganization of Midstates Petroleum Company, Inc. and its Debtor Affiliate as filed on the same date (the “Plan”). On October 21, 2016 (the “Effective Date”), the Company satisfied the conditions to effectiveness set forth in the Confirmation Order and in the Plan, and, as a result, the Plan became effective in accordance with its terms and the Company emerged from the Chapter 11 Cases. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
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 (“US 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, 2016 included in the Company’s Annual Report on Form 10-K as filed with the SEC on March 30, 2017. 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 unaudited condensed consolidated financial statements, management has made certain estimates and assumptions that affect reported amounts in the unaudited 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. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 852, Reorganizations , the Company adopted fresh start accounting upon emergence from the Chapter 11 Cases resulting in the Company becoming a new entity for financial reporting purposes. As a result of the application of fresh start accounting, as well as the effects of the implementation of the Plan, the Company’s consolidated financial statements on or after October 21, 2016, are not comparable with the consolidated financial statements prior to that date. References to “Successor Period” relate to the results of operations for the period January 1, 2017 through September 30, 2017 and references to “Predecessor Period” refer to the results of operations from January 1, 2016 through September 30, 2016. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers (Topic 606) ” (“ASU 2014-09”). ASU 2014-09 provides guidance concerning the recognition and measurement of revenue from contracts with customers. The objective of ASU 2014-09 is to increase the usefulness of information in the financial statements regarding the nature, timing and uncertainty of revenues. The Company has completed its review of contracts for each revenue stream identified within the Company’s business and is currently finalizing its conclusion on any changes in revenue recognition upon adoption of the revised guidance. Based on assessments to date, the Company believes ASU 2014-09 will impact the presentation of future revenues and expenses by including certain transportation and gathering costs, along with various other fees such as compression and marketing fees net within revenues. The inclusion of these costs within revenues will not impact the Company’s revenue recognition, its financial position, net income or cash flows. In addition, several industry interpretations are currently open for public comment. The Company cannot quantitatively assess the impact of ASU 2014-09 on its financial statements until final consensus is reached on these various industry matters. Once all pending industry interpretations are addressed, the Company will finalize its assessment of ASU 2014-09. The Company is in the process of evaluating the information technology and internal control changes that will be required for adoption based on the Company’s contract review process, but does not currently anticipate material impacts to either information technology or internal controls. However, this assessment is pending conclusion of various industry interpretations. The Company intends to apply the modified retrospective approach upon adoption of this standard on the effective date of January 1, 2018. In February 2016, the FASB issued Accounting Standards Update 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. All leases create an asset and a liability for the lessee and therefore recognition of those lease assets and lease liabilities is required by ASU 2016-02. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is in the initial evaluation and planning stages for ASU 2016-02 and does not expect to move beyond this stage until completion of its evaluation of ASU 2014-09. In July 2017, the FASB issued Accounting Standards Update 2017-11, “Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivatives and Hedging (Topic 815)” (“ASU 2017-11”). ASU 2017-11 changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments require entities that present earnings per share (“EPS”) in accordance with Topic 260 to recognize the effect of the down round feature when triggered with the effect treated as a dividend and as a reduction of income available to common shareholders in basic EPS. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company does not believe the adoption of ASU 2017-11 will have a material impact on its financial position, results of operations or cash flows. |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
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 unaudited condensed consolidated balance sheets are recorded at estimated fair value. At September 30, 2017, all of the Company’s commodity derivative contracts were with four bank counterparties and were classified as Level 2 in the fair value input hierarchy. The fair value of the Company’s commodity derivatives are determined using industry-standard models that consider various assumptions including current market and contractual prices for the underlying instruments, implied volatility, time value, nonperformance risk, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument and can be supported by observable data. Derivative instruments listed below are presented gross and include swaps and collars 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. Fair Value Measurements at September 30, 2017 Significant Other Significant Quoted Prices in Active Observable Inputs Unobservable Inputs Total (in thousands) Derivative Assets: Commodity derivative oil swaps $ — $ $ — $ Commodity derivative gas swaps $ — $ $ — $ Commodity derivative oil collars $ — $ $ — $ Commodity derivative gas collars $ — $ $ — $ Total assets $ — $ $ — $ Derivative Liabilities: Commodity derivative oil swaps $ — $ ) $ — $ ) Commodity derivative gas swaps $ — $ — $ — $ — Commodity derivative oil collars $ — $ ) $ — $ ) Commodity derivative gas collars $ — $ ) $ — $ ) Total liabilities $ — $ ) $ — $ ) At December 31, 2016, the Company did not have any open commodity derivative contract positions. |
Risk Management and Derivative
Risk Management and Derivative Instruments | 9 Months Ended |
Sep. 30, 2017 | |
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, NGLs and natural gas prices. The Company believes it is prudent to manage the variability in cash flows by, at times, entering into derivative financial instruments to economically hedge a portion of its crude oil, NGLs and natural gas production. The Company utilizes various types of derivative financial instruments to manage fluctuations in cash flows resulting from changes in commodity prices. · Swaps: The Company receives or pays a fixed price for the commodity and pays or receives a floating market price to the counterparty. The fixed-price payment and the floating-price payment are netted, resulting in a net amount due to or from the counterparty. · Collars: A collar contains a fixed floor price (put) and a fixed ceiling price (call). If the market price exceeds the call strike price or falls below the put strike price, the Company receives the fixed price and pays the market price. If the market price is between the call and the put strike price, no payments are due from either party. · Three-way collars: A three-way collar contains a fixed floor price (long put), fixed sub-floor price (short put), and a fixed ceiling price (short call). If the market price exceeds the ceiling strike price, the Company receives the ceiling strike price and pays the market price. If the market price is between the ceiling and the floor strike price, no payments are due from either party. If the market price is below the floor price but above the sub-floor price, the Company receives the floor strike price and pays the market price. If the market price is below the sub-floor price, the Company receives the market price plus the difference between the floor and the sub-floor strike prices and pays the market price. These derivative contracts are placed with major financial institutions that the Company believes are minimal credit risks. The crude oil, NGLs and natural gas reference prices upon which the commodity derivative contracts are based reflect various market indices that management believes correlates with actual prices received by the Company for its crude oil, NGLs 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 of 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, 2017 would have been $2.6 million. Commodity Derivative Contracts The Company has entered into various oil and natural gas derivative contracts that extend through March 2019, summarized as follows: NYMEX WTI Fixed Swaps Collars Three Way Collars Hedge Weighted Hedge Weighted Weighted Hedge Weighted Weighted Weighted Quarter Ended: September 30, 2017(2) $ $ $ $ $ $ December 31, 2017(1)(2) $ $ $ $ $ $ March 31, 2018(1) $ — $ — $ — $ $ $ June 30, 2018(1) $ — $ — $ — $ $ $ September 30, 2018(1) $ — $ — $ — $ $ $ December 31, 2018(1) $ — $ — $ — $ $ $ NYMEX HENRY HUB Fixed Swaps Collars Three Way Collars Hedge Weighted Hedge Weighted Weighted Hedge Weighted Weighted Weighted Quarter Ended: September 30, 2017 $ $ $ — $ — $ — $ — December 31, 2017(1) $ $ $ $ $ $ March 31, 2018(1)(3) $ — $ — $ — $ $ $ June 30, 2018(1) — $ — — $ — $ — $ $ $ September 30, 2018(1) — $ — — $ — $ — $ $ $ December 31, 2018(1) — $ — — $ — $ — $ $ $ March 31, 2019(1) — $ — — $ — $ — $ $ $ (1) Positions shown represent open commodity derivative contract positions as of September 30, 2017. The Company did not have any open commodity derivative contract positions as of December 31, 2016. (2) During the second quarter, the Company entered into long call oil trades to offset its three way collar short calls for the second half of 2017. (3) During the second quarter, the Company entered into natural gas three way collars with long call ceilings in order to offset its Q1 2018 natural gas fixed swaps. Subsequent to September 30, 2017, the Company entered into various oil derivative contracts that extend through December 2019, summarized as follows: NYMEX WTI Fixed Swaps Collars Three Way Collars Hedge Weighted Hedge Weighted Weighted Hedge Weighted Weighted Weighted Quarter Ended: March 31, 2019 — $ — — $ — $ — $ $ $ June 30, 2019 — $ — — $ — $ — $ $ $ September 30, 2019 — $ — — $ — $ — $ $ $ December 31, 2019 — $ — — $ — $ — $ $ $ Balance Sheet Presentation The following table summarizes the net fair values of commodity derivative instruments by the appropriate balance sheet classification in the Company’s unaudited condensed consolidated balance sheets at September 30, 2017 (in thousands): Type Balance Sheet Location (1) September 30, 2017 Oil swaps Derivative financial instruments — current assets $ Gas swaps Derivative financial instruments — current assets Oil collars Derivative financial instruments — current assets Gas collars Derivative financial instruments — current assets Oil swaps Derivative financial instruments — noncurrent liabilities ) Oil collars Derivative financial instruments — noncurrent liabilities Gas collars Derivative financial instruments — noncurrent liabilities ) Total derivative fair value at period end $ (1) The fair values of commodity derivative instruments reported in the Company’s unaudited 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 commodity 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, 2017 (in thousands): September 30, 2017 Not Designated as Gross Recognized Gross Amounts Net Recognized ASC 815 Hedges Balance Sheet Location Classification Assets/Liabilities Offset Assets/Liabilities Derivative Assets: Commodity contracts Derivative financial instruments — current $ $ ) $ Commodity contracts Derivative financial instruments — noncurrent ) — $ $ ) $ Derivative Liabilities: Commodity contracts Derivative financial instruments — current $ ) $ $ — Commodity contracts Derivative financial instruments — noncurrent ) ) $ ) $ $ ) As of December 31, 2016, the Company did not have any open commodity derivative contract positions. 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 net cash received for commodity derivative contracts and unrealized net gains 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 (in thousands): For the Three Months Ended For the Nine Months Ended September 30, 2017 September 30, 2017 Net cash received for commodity derivative contracts $ $ Unrealized net (losses) gains ) Gains (losses) on commodity derivative contracts—net $ ) $ Cash settlements, as presented in the table above, represent realized gains related to the Company’s derivative instruments. In addition to cash settlements, the Company also recognizes fair value changes on its derivative instruments in each reporting period. The changes in fair value result from new positions and settlements that may occur during each reporting period, as well as the relationships between contract prices and the associated forward curves. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2017 | |
Property and Equipment | |
Property and Equipment | 5. Property and Equipment Property and equipment consisted of the following as of the dates presented: September 30, 2017 December 31, 2016 (in thousands) Oil and gas properties, on the basis of full-cost accounting: Proved properties $ $ Unproved properties Other property and equipment Less accumulated depreciation, depletion and amortization ) ) Net property and equipment $ $ 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, 2017 and 2016, the Company capitalized the following (in thousands): Successor Predecessor Successor Predecessor Three Months Three Months Nine Months Nine Months September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Internal costs capitalized to oil and gas properties (1) $ $ $ $ (1) Inclusive of $0.8 million and $0.1 million of qualifying share-based compensation expense for the three months ended September 30, 2017 and 2016, respectively. For the nine months ended September 30, 2017 and 2016, inclusive of $2.0 million and $0.5 million, respectively, of qualifying share-based compensation expense. The Company accounts for its oil and gas properties under the full cost method. Under the full cost method, proceeds realized 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. During the nine months ended September 30, 2017, the Company disposed of certain oil and gas equipment for cash proceeds of $1.4 million, which were reflected as a reduction of oil and gas properties with no gain or loss recognized. During the three months ended September 30, 2017, the Company closed on the sale of certain oil and gas properties in Lincoln County, Oklahoma, for $7.0 million in cash ($2.9 million, net after assumption of liabilities), subject to standard post-closing adjustments. The net proceeds from the sale were retained for general corporate purposes. The Company performs a full-cost ceiling test on a quarterly basis. The test establishes a limit (ceiling) on the book value of the Company’s oil and gas properties. The capitalized costs of oil and gas properties, net of accumulated depreciation, depletion, amortization and impairment (“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 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 held constant throughout the life of the properties) and a discount factor of 10%; (ii) the cost of unproved 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 unaudited condensed consolidated statements of operations. The Company did not record an impairment of oil and gas properties during the three or nine months ended September 30, 2017. The three and nine month periods ended September 30, 2016 included impairments of oil and gas properties of $33.9 million and $224.6 million, respectively. These impairments were primarily the result of continued low commodity prices, which resulted in a decrease in the discounted present value of the Company’s proved oil and natural gas reserves. DD&A is calculated using the Units of Production Method (“UOP”). The UOP calculation multiplies the percentage of total 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 DD&A and impairment, 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, 2017 and 2016, respectively: Successor Predecessor Successor Predecessor Successor Predecessor Successor Predecessor Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended 2017 2016 2017 2016 2017 2016 2017 2016 (in thousands) (per Boe) (in thousands) (per Boe) Depletion expense $ $ $ $ $ $ $ $ Depreciation on other property and equipment Depreciation, depletion, and amortization $ $ $ $ $ $ $ $ Oil and gas unproved properties include costs that are not being depleted or amortized. 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 annually to determine if impairment has occurred. In addition, impairment assessments are made for interim reporting periods if facts and circumstances exist that suggest impairment may have occurred. During any period in which impairment is indicated, the accumulated costs associated with the impaired property are transferred to proved properties and become part of our depletion base and subject to the full cost ceiling limitation. No impairment of unproved properties was recorded during the three or nine months ended September 30, 2017. Unproved property was $26.2 million and $65.1 million at September 30, 2017 and December 31, 2016, respectively. Other Property and Equipment Other property and equipment consists of vehicles, furniture and fixtures, and computer hardware and software and are carried at cost. Depreciation is calculated principally using the straight-line method over the estimated useful lives of the assets, which range from five to seven years. Maintenance and repairs are charged to expense as incurred, while renewals and betterments are capitalized. |
Other Noncurrent Assets
Other Noncurrent Assets | 9 Months Ended |
Sep. 30, 2017 | |
Other Noncurrent Assets | |
Other Noncurrent Assets | 6. Other Noncurrent Assets The following table presents the components of other noncurrent assets as of the dates presented: September 30, 2017 December 31, 2016 (in thousands) Deferred financing costs associated with the Exit Facility $ $ Field equipment inventory Other Other noncurrent assets $ $ |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Accrued Liabilities | |
Accrued Liabilities | 7. Accrued Liabilities The following table presents the components of accrued liabilities as of the dates presented: September 30, 2017 December 31, 2016 (in thousands) Accrued oil and gas capital expenditures $ $ Accrued revenue and royalty distributions Accrued lease operating and workover expense Accrued interest Accrued taxes Compensation and benefit related accruals Other Accrued liabilities $ $ |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2017 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | 8. Asset Retirement Obligations Asset Retirement Obligations (“AROs”) represent the estimated future abandonment costs of tangible assets, such as wells, service assets and other facilities. The estimated fair value of the AROs at inception is capitalized as part of the carrying amount of the related long-lived assets. The following table reflects the changes in the Company’s AROs for the periods presented (in thousands): Successor Predecessor Nine Months Nine Months September 30, 2017 September 30, 2016 Asset retirement obligations — beginning of period $ $ Liabilities incurred Revisions — — Liabilities settled ) ) Liabilities eliminated through asset sales ) — Current period accretion expense Asset retirement obligations — end of period $ $ |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt | |
Debt | 9. Debt Exit Facility At September 30, 2017 and December 31, 2016, the Company maintained a reserves based credit facility with a borrowing base of $170.0 million (the “Exit Facility”). At September 30, 2017, and December 31, 2016, the Company had $128.1 million drawn on the Exit Facility and had outstanding letters of credit obligations totaling $1.9 million. As of September 30, 2017, the Company had $40.0 million of availability on the Exit Facility. The Exit Facility bears interest at LIBOR plus 4.50% per annum, subject to a 1.00% LIBOR floor. For the three months ended September 30, 2017, the weighted average interest rate was 5.7%. Unamortized debt issuance costs of $1.3 million and $1.2 million associated with the Exit Facility are included in “Other noncurrent assets” on the unaudited condensed consolidated balance sheets at September 30, 2017, and December 31, 2016, respectively. In addition to interest expense, the Exit Facility requires the payment of a commitment fee each quarter. The commitment fee is computed at the rate of 0.50% per annum based on the average daily amount by which the borrowing base exceeds outstanding borrowings during each quarter. On May 24, 2017, the Company entered into the First Amendment to the Exit Facility (the “First Amendment”). The First Amendment, among other items, (i) moved the first scheduled borrowing base redetermination from April 2018 to October 2017; (ii) removed the requirement to maintain a cash collateral account with the administrative agent in the amount of $40.0 million; (iii) removed the requirement to maintain at least 20% liquidity of the then effective borrowing base; (iv) amended the required mortgage threshold from 95% to 90%; (v) amended the threshold amount for which the borrower is required to provide advance notice to the administrative agent of a sale or disposition of oil and gas properties which occurs during the period between two successive redeterminations of the borrowing base; (vi) amended the required ratio of total net indebtedness to EBITDA from 2.25:1.00 to 4.00:1.00; (vii) amended the required EBITDA to interest coverage ratio from not less than 3.00:1.00 to not less than 2.50:1.00; and (viii) removed certain limitations on capital expenditures. As of September 30, 2017, the Company was in compliance with its debt covenants. On October 27, 2017, the Company’s borrowing base was redetermined at the existing amount of $170.0 million. The Company’s Anadarko Basin assets in Texas and Oklahoma were excluded from the redetermination of the borrowing base. The Company believes the carrying amount of the Exit Facility at September 30, 2017 approximates its fair value (Level 2) due to the variable nature of the Exit Facility interest rate. |
Equity and Share-Based Compensa
Equity and Share-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Equity and Share-Based Compensation | |
Equity and Share-Based Compensation | 10. Equity and Share-Based Compensation Common Shares Share Activity The following table summarizes changes in the number of outstanding shares during the nine months ended September 30, 2017: Common Treasury Share count as of December 31, 2016 — Common stock issued — Acquisition of treasury stock — ) Share count as of September 30, 2017 ) (1) Treasury stock represents the net settlement on vesting of restricted stock necessary to satisfy the minimum statutory tax withholding requirements. Share-Based Compensation 2016 Long Term Incentive Plan On the Effective Date, the Company established the 2016 LTIP and filed a Form S-8 with the SEC, registering 3,513,950 shares for issuance under the terms of the 2016 LTIP to employees, directors and certain other persons (the “Award Shares”). The types of awards that may be granted under the 2016 LTIP include stock options, restricted stock units, restricted stock, performance awards and other forms of awards granted or denominated in shares of common stock of the reorganized Company, as well as certain cash-based awards (the “Awards”). The terms of each award are as determined by the Compensation Committee of the Board of Directors. Awards that expire, or are canceled, forfeited, exchanged, settled in cash or otherwise terminated, will again be available for future issuance under the 2016 LTIP. At September 30, 2017, 2,299,088 Award Shares remain available for issuance under the terms of the 2016 LTIP. Restricted Stock Units At September 30, 2017, the Company had 494,794 non-vested restricted stock units outstanding to employees and non-employee directors pursuant to the 2016 LTIP, excluding restricted stock units issued to non-employee directors containing a market condition, which are discussed below. Restricted stock units granted to employees under the 2016 LTIP vest ratably over a period of three years: one-sixth will vest on the six-month anniversary of the grant date, an additional one-sixth will vest on the twelve-month anniversary of the grant date, an additional one-third will vest on the twenty-four month anniversary of the grant date and the final one-third will vest on the thirty-six month anniversary of the grant date. Restricted stock units granted to non-employee directors vest on the first to occur of (i) December 31, 2017, (ii) the date the non-employee director ceases to be a director of the Board (other than for cause), (iii) the director’s death, (iv) the director’s disability or (v) a change in control of the Company. The fair value of restricted stock units was based on grant date fair value of the Company’s common stock. Compensation expense is recognized ratably over the requisite service period. The following table summarizes the Company’s non-vested restricted stock unit award activity for the nine months ended September 30, 2017: Restricted Stock Weighted Average Non-vested shares outstanding at December 31, 2016 $ Granted $ Vested ) $ Forfeited ) $ Non-vested shares outstanding at September 30, 2017 $ Unrecognized expense as of September 30, 2017, for all outstanding restricted stock units under the 2016 LTIP was $3.9 million and will be recognized over a weighted average period of 1.2 years. Subsequent to September 30, 2017, 174,135 restricted stock units vested before consideration of minimum statutory tax withholding requirements. On August 22, 2017, the Company amended the employment agreement of Fredric F. Brace, former President and Chief Executive Officer (the “Executive Employment Amendment”). Among other provisions, the Executive Employment Amendment accelerated the vesting of all outstanding equity awards of Mr. Brace to October 21, 2017. As a result, approximately $0.8 million of compensation expense associated with Mr. Brace’s non-vested restricted stock was accelerated into the three and nine months ended September 30, 2017. Stock Options At September 30, 2017, the Company had 423,438 non-vested stock options outstanding pursuant to the 2016 LTIP. Stock Option Awards granted under the 2016 LTIP vest ratably over a period of three years: one-sixth will vest on the six-month anniversary of the grant date, an additional one-sixth will vest on the twelve-month anniversary of the grant date, an additional one-third will vest on the twenty-four month anniversary of the grant date and the final one-third will vest on the thirty-six month anniversary of the grant date. Stock Option Awards expire 10 years from the grant date. The Company utilizes the Black-Scholes-Merton option pricing model to determine the fair value of stock option awards. Determining the fair value of equity-based awards requires judgment, including estimating the expected term that stock option awards will be outstanding prior to exercise and the associated volatility. The following table summarizes the Company’s 2016 LTIP non-vested stock option activity for the nine months ended September 30, 2017: Options Range of Exercise Weighted Weighted Stock options outstanding at December 31, 2016 $ Granted $ $ Vested ) $ 19.08-20.97 $ — Forfeited ) $ $ — Stock options outstanding at September 30, 2017 $ Vested and exercisable at end of period(1) $ 19.08-20.97 $ (1) Vested and exercisable options at September 30, 2017, had no aggregate intrinsic value. Unrecognized expense as of September 30, 2017, for all outstanding stock options under the 2016 LTIP was $1.9 million and will be recognized over a weighted average period of 1.3 years. Subsequent to September 30, 2017, 171,885 stock options vested before consideration of minimum statutory tax withholding requirements. On August 22, 2017, the Company amended the Executive Employment Amendment. Among other provisions, the Executive Employment Amendment accelerated the vesting of all outstanding equity awards of Mr. Brace to October 21, 2017. As a result, approximately $0.4 million of compensation expense associated with Mr. Brace’s non-vested stock options was accelerated into the three and nine months ended September 30, 2017. Non-Employee Director Restricted Stock Units Containing a Market Condition On November 23, 2016, the Company issued certain restricted stock units to non-employee directors that contain a market vesting condition. These restricted stock units will vest (i) on the first business day following the date on which the trailing 60-day average share price (including any dividends paid) of the Company’s common stock is equal to or greater than $30.00 or (ii) upon a change in control of the Company. Additionally, all unvested restricted stock units containing a market vesting condition will be immediately forfeited upon the first to occur of (i) the fifth (5th) anniversary of the grant date or (ii) any participant’s termination as a director for any reason (except for a termination as part of a change in control of the Company). These restricted stock awards are accounted for as liability awards under FASB ASC 718 as the awards allow for the withholding of taxes at the discretion of the non-employee director. The liability is re-measured, with a corresponding adjustment to earnings, at each fiscal quarter-end during the performance cycle. The liability and related compensation expense of these awards for each period is recognized by dividing the fair value of the total liability by the requisite service period and recording the pro rata share for the period for which service has already been provided. As there are inherent uncertainties related to these factors and the Company’s judgment in applying them to the fair value determinations, there is risk that the recorded compensation may not accurately reflect the amount ultimately earned by the non-employee directors. The restricted stock unit awards issued to non-employee directors containing a market condition has a derived service period of one year. At September 30, 2017, the Company recorded a $0.7 million liability included within “Accrued liabilities” in the unaudited condensed consolidated balance sheets related to the market condition awards. The fair value of the restricted stock containing a market condition was $11.05 per unit at September 30, 2017. As of September 30, 2017, unrecognized stock-based compensation related to market condition awards was $0.1 million and will be recognized over a weighted-average period of 0.1 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes | |
Income Taxes | 11. Income Taxes For the nine months ended September 30, 2017, the Company recorded no income tax expense or benefit. The significant difference between our effective tax rate and the federal statutory income tax rate of 35% is primarily due to the effect of changes in the Company’s valuation allowance. During the nine months ended September 30, 2017, the Company’s valuation allowance decreased by $13.0 million from December 31, 2016, bringing the total valuation allowance to $147.8 million at September 30, 2017. A valuation allowance has been recorded as management does not believe that it is more-likely-than-not that its deferred tax assets are realizable. 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, 2017 | |
Earnings (Loss) Per Share | |
Earnings (Loss) Per Share | 12. Earnings (Loss) Per Share Successor The following table provides a reconciliation of net income attributable to common shareholders and weighted average common shares outstanding for basic and diluted earnings per share for the Successor Periods presented: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 (in thousands, except per (in thousands, except per Net Earnings: Net income $ $ Participating securities—non-vested restricted stock ) ) Basic and diluted earnings $ $ Common Shares: Common shares outstanding — basic (1) Dilutive effect of potential common shares — — Common shares outstanding — diluted Net Earnings Per Share: Basic $ $ Diluted $ $ Antidilutive stock options (2) Antidilutive warrants (3) (1) Weighted-average common shares outstanding for basic and diluted earnings per share purposes includes 17,533 shares of common stock that, while not issued and outstanding at September 30, 2017, are required by the Plan to be issued. (2) Amount represents stock options to purchase common stock that are excluded from the diluted net earnings per share calculations because of their antidilutive effect. (3) Amount represents warrants to purchase common stock that are excluded from the diluted net earnings per share calculations because of their antidilutive effect. Predecessor The Company’s nonvested stock awards, which were granted as part of the 2012 LTIP, contained nonforfeitable rights to dividends and as such, were considered to be participating securities and are included in the computation of basic and diluted earnings per share, pursuant to the two-class method. 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 earnings (loss) 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 provides a reconciliation of net loss to preferred shareholders, common shareholders, and participating securities for purposes of computing net loss per share for the Predecessor Periods presented: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 (in thousands, except per (in thousands, except per Net loss $ ) $ ) Preferred Dividend — — Participating securities—non-vested restricted stock — — Net loss attributable to shareholders $ ) $ ) Weighted average shares outstanding Basic and diluted net loss per share $ ) $ ) |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions | |
Related Party Transactions | 13. Related Party Transactions The Company has entered into an arrangement with EcoStim Energy Solutions, Inc. (“EcoStim”) for well stimulation and completion services. EcoStim is an affiliate of Fir Tree Inc., an entity holding approximately 25.5% of the Company’s outstanding common stock. For the three and nine months ended September 30, 2017, the Company paid approximately $5.9 million and $7.3 million, respectively, to EcoStim for services provided. No transactions with EcoStim occurred during the three and nine months ended September 30, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies | |
Commitments and Contingencies | 14. Commitments and Contingencies The Company is involved in various matters incidental to its operations and business that might give rise to a loss contingency. These matters may include legal and regulatory proceedings, commercial disputes, claims from royalty, working interest and surface owners, property damage and personal injury claims and environmental or other matters. In addition, the Company may be subject to customary audits by governmental authorities regarding the payment and reporting of various taxes, governmental royalties and fees as well as compliance with unclaimed property (escheatment) requirements and other laws. Further, other parties with an interest in wells operated by the Company have the ability under various contractual agreements to perform audits of its joint interest billing practices. The Company vigorously defends itself in these matters. If the Company determines that an unfavorable outcome or loss of a particular matter is probable and the amount of loss can be reasonably estimated, it accrues a liability for the contingent obligation. As new information becomes available or as a result of legal or administrative rulings in similar matters or a change in applicable law, the Company’s conclusions regarding the probability of outcomes and the amount of estimated loss, if any, may change. The impact of subsequent changes to the Company’s accruals could have a material effect on its results of operations. As of September 30, 2017, and December 31, 2016, the Company’s total accrual for all loss contingencies was $1.4 million and $1.1 million, respectively. During the nine months ended September 30, 2017, the Company received an insurance reimbursement in the amount of $1.9 million, which was reflected as a reduction of “Lease operating and workover” expenses in the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2017. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Event | |
Subsequent Event | 15. Subsequent Event On October 25, 2017, David J. Sambrooks was appointed to the position of President and Chief Executive Officer, effective immediately upon the resignation of Mr. Brace on November 1, 2017. The Board of Directors of the Company (the “Board”) also approved an increase in the number of directors, from seven directors to eight directors, and Mr. Sambrooks was appointed to the Board, effective concurrently with his appointment as an executive officer. In connection with the appointment of Mr. Sambrooks as President and Chief Executive Officer, Mr. Sambrooks and the Company entered into an employment agreement outlining the terms of his employment as President and Chief Executive Officer of the Company. Among other provisions, Mr. Sambrooks received incentive awards including (i) the grant of 67,889 time-vested restricted stock units and (ii) the grant of 135,778 performance stock units (“PSUs”). The time-vested restricted stock units will generally vest in three installments: 1/3 will vest on the one-year anniversary of the award date, an additional 1/3 will vest on the two-year anniversary of the award date and the final 1/3 will vest on the three-year anniversary of the award date. The PSUs will vest, if at all, based upon the performance of the Company’s stock during the period of October 25, 2017 through October 31, 2020 (the “Performance Period”). Half of the PSUs will vest, if at all, based upon the Company’s total absolute stockholder return for the Performance Period, and the other half will vest, if at all, based upon the Company’s relative total stockholder return when measuring the Company’s stock performance during the Performance Period to the stock performance of a selected peer group during the Performance Period. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
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 (“US 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, 2016 included in the Company’s Annual Report on Form 10-K as filed with the SEC on March 30, 2017. 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 unaudited condensed consolidated financial statements, management has made certain estimates and assumptions that affect reported amounts in the unaudited 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. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 852, Reorganizations , the Company adopted fresh start accounting upon emergence from the Chapter 11 Cases resulting in the Company becoming a new entity for financial reporting purposes. As a result of the application of fresh start accounting, as well as the effects of the implementation of the Plan, the Company’s consolidated financial statements on or after October 21, 2016, are not comparable with the consolidated financial statements prior to that date. References to “Successor Period” relate to the results of operations for the period January 1, 2017 through September 30, 2017 and references to “Predecessor Period” refer to the results of operations from January 1, 2016 through September 30, 2016. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers (Topic 606) ” (“ASU 2014-09”). ASU 2014-09 provides guidance concerning the recognition and measurement of revenue from contracts with customers. The objective of ASU 2014-09 is to increase the usefulness of information in the financial statements regarding the nature, timing and uncertainty of revenues. The Company has completed its review of contracts for each revenue stream identified within the Company’s business and is currently finalizing its conclusion on any changes in revenue recognition upon adoption of the revised guidance. Based on assessments to date, the Company believes ASU 2014-09 will impact the presentation of future revenues and expenses by including certain transportation and gathering costs, along with various other fees such as compression and marketing fees net within revenues. The inclusion of these costs within revenues will not impact the Company’s revenue recognition, its financial position, net income or cash flows. In addition, several industry interpretations are currently open for public comment. The Company cannot quantitatively assess the impact of ASU 2014-09 on its financial statements until final consensus is reached on these various industry matters. Once all pending industry interpretations are addressed, the Company will finalize its assessment of ASU 2014-09. The Company is in the process of evaluating the information technology and internal control changes that will be required for adoption based on the Company’s contract review process, but does not currently anticipate material impacts to either information technology or internal controls. However, this assessment is pending conclusion of various industry interpretations. The Company intends to apply the modified retrospective approach upon adoption of this standard on the effective date of January 1, 2018. In February 2016, the FASB issued Accounting Standards Update 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. All leases create an asset and a liability for the lessee and therefore recognition of those lease assets and lease liabilities is required by ASU 2016-02. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is in the initial evaluation and planning stages for ASU 2016-02 and does not expect to move beyond this stage until completion of its evaluation of ASU 2014-09. In July 2017, the FASB issued Accounting Standards Update 2017-11, “Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivatives and Hedging (Topic 815)” (“ASU 2017-11”). ASU 2017-11 changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments require entities that present earnings per share (“EPS”) in accordance with Topic 260 to recognize the effect of the down round feature when triggered with the effect treated as a dividend and as a reduction of income available to common shareholders in basic EPS. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company does not believe the adoption of ASU 2017-11 will have a material impact on its financial position, results of operations or cash flows. |
Fair Value Measurements of Fi25
Fair Value Measurements of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements of Financial Instruments | |
Schedule of derivative instruments measured at fair value | Fair Value Measurements at September 30, 2017 Significant Other Significant Quoted Prices in Active Observable Inputs Unobservable Inputs Total (in thousands) Derivative Assets: Commodity derivative oil swaps $ — $ $ — $ Commodity derivative gas swaps $ — $ $ — $ Commodity derivative oil collars $ — $ $ — $ Commodity derivative gas collars $ — $ $ — $ Total assets $ — $ $ — $ Derivative Liabilities: Commodity derivative oil swaps $ — $ ) $ — $ ) Commodity derivative gas swaps $ — $ — $ — $ — Commodity derivative oil collars $ — $ ) $ — $ ) Commodity derivative gas collars $ — $ ) $ — $ ) Total liabilities $ — $ ) $ — $ ) |
Risk Management and Derivativ26
Risk Management and Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Risk Management and Derivative Instruments | |
Schedule of commodity derivative contracts | NYMEX WTI Fixed Swaps Collars Three Way Collars Hedge Weighted Hedge Weighted Weighted Hedge Weighted Weighted Weighted Quarter Ended: September 30, 2017(2) $ $ $ $ $ $ December 31, 2017(1)(2) $ $ $ $ $ $ March 31, 2018(1) $ — $ — $ — $ $ $ June 30, 2018(1) $ — $ — $ — $ $ $ September 30, 2018(1) $ — $ — $ — $ $ $ December 31, 2018(1) $ — $ — $ — $ $ $ NYMEX HENRY HUB Fixed Swaps Collars Three Way Collars Hedge Weighted Hedge Weighted Weighted Hedge Weighted Weighted Weighted Quarter Ended: September 30, 2017 $ $ $ — $ — $ — $ — December 31, 2017(1) $ $ $ $ $ $ March 31, 2018(1)(3) $ — $ — $ — $ $ $ June 30, 2018(1) — $ — — $ — $ — $ $ $ September 30, 2018(1) — $ — — $ — $ — $ $ $ December 31, 2018(1) — $ — — $ — $ — $ $ $ March 31, 2019(1) — $ — — $ — $ — $ $ $ (1) Positions shown represent open commodity derivative contract positions as of September 30, 2017. The Company did not have any open commodity derivative contract positions as of December 31, 2016. (2) During the second quarter, the Company entered into long call oil trades to offset its three way collar short calls for the second half of 2017. (3) During the second quarter, the Company entered into natural gas three way collars with long call ceilings in order to offset its Q1 2018 natural gas fixed swaps. |
Schedule of open commodity derivative contract positions | Subsequent to September 30, 2017, the Company entered into various oil derivative contracts that extend through December 2019, summarized as follows: NYMEX WTI Fixed Swaps Collars Three Way Collars Hedge Weighted Hedge Weighted Weighted Hedge Weighted Weighted Weighted Quarter Ended: March 31, 2019 — $ — — $ — $ — $ $ $ June 30, 2019 — $ — — $ — $ — $ $ $ September 30, 2019 — $ — — $ — $ — $ $ $ December 31, 2019 — $ — — $ — $ — $ $ $ |
Schedule of fair value of commodity derivative instruments by balance sheet classification | The following table summarizes the net fair values of commodity derivative instruments by the appropriate balance sheet classification in the Company’s unaudited condensed consolidated balance sheets at September 30, 2017 (in thousands): Type Balance Sheet Location (1) September 30, 2017 Oil swaps Derivative financial instruments — current assets $ Gas swaps Derivative financial instruments — current assets Oil collars Derivative financial instruments — current assets Gas collars Derivative financial instruments — current assets Oil swaps Derivative financial instruments — noncurrent liabilities ) Oil collars Derivative financial instruments — noncurrent liabilities Gas collars Derivative financial instruments — noncurrent liabilities ) Total derivative fair value at period end $ (1) The fair values of commodity derivative instruments reported in the Company’s unaudited condensed consolidated balance sheets are subject to netting arrangements and qualify for net presentation. |
Summary of location and fair values amounts of all commodity derivative instruments as well as the gross recognized derivative assets, liabilities and amounts offset in the unaudited condensed consolidated balance sheet | The following table summarizes the location and fair value amounts of all commodity 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, 2017 (in thousands): September 30, 2017 Not Designated as Gross Recognized Gross Amounts Net Recognized ASC 815 Hedges Balance Sheet Location Classification Assets/Liabilities Offset Assets/Liabilities Derivative Assets: Commodity contracts Derivative financial instruments — current $ $ ) $ Commodity contracts Derivative financial instruments — noncurrent ) — $ $ ) $ Derivative Liabilities: Commodity contracts Derivative financial instruments — current $ ) $ $ — Commodity contracts Derivative financial instruments — noncurrent ) ) $ ) $ $ ) |
Schedule of net cash received for commodity derivative contracts and unrealized net gains related to the change in fair value of derivative instruments - net for the periods | The following table presents net cash received for commodity derivative contracts and unrealized net gains 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 (in thousands): For the Three Months Ended For the Nine Months Ended September 30, 2017 September 30, 2017 Net cash received for commodity derivative contracts $ $ Unrealized net (losses) gains ) Gains (losses) on commodity derivative contracts—net $ ) $ |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property and Equipment | |
Schedule of property and equipment | September 30, 2017 December 31, 2016 (in thousands) Oil and gas properties, on the basis of full-cost accounting: Proved properties $ $ Unproved properties Other property and equipment Less accumulated depreciation, depletion and amortization ) ) Net property and equipment $ $ |
Schedule of internal costs capitalized | During the three and nine months ended September 30, 2017 and 2016, the Company capitalized the following (in thousands): Successor Predecessor Successor Predecessor Three Months Three Months Nine Months Nine Months September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Internal costs capitalized to oil and gas properties (1) $ $ $ $ (1) Inclusive of $0.8 million and $0.1 million of qualifying share-based compensation expense for the three months ended September 30, 2017 and 2016, respectively. For the nine months ended September 30, 2017 and 2016, inclusive of $2.0 million and $0.5 million, respectively, of qualifying share-based compensation expense. |
Schedule of depletion expense related to oil and gas properties | Successor Predecessor Successor Predecessor Successor Predecessor Successor Predecessor Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended 2017 2016 2017 2016 2017 2016 2017 2016 (in thousands) (per Boe) (in thousands) (per Boe) Depletion expense $ $ $ $ $ $ $ $ Depreciation on other property and equipment Depreciation, depletion, and amortization $ $ $ $ $ $ $ $ |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Noncurrent Assets | |
Schedule of the components of other noncurrent assets | September 30, 2017 December 31, 2016 (in thousands) Deferred financing costs associated with the Exit Facility $ $ Field equipment inventory Other Other noncurrent assets $ $ |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accrued Liabilities | |
Schedule of the components of accrued liabilities | September 30, 2017 December 31, 2016 (in thousands) Accrued oil and gas capital expenditures $ $ Accrued revenue and royalty distributions Accrued lease operating and workover expense Accrued interest Accrued taxes Compensation and benefit related accruals Other Accrued liabilities $ $ |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Asset Retirement Obligations | |
Schedule of changes in the Company's AROs | The following table reflects the changes in the Company’s AROs for the periods presented (in thousands): Successor Predecessor Nine Months Nine Months September 30, 2017 September 30, 2016 Asset retirement obligations — beginning of period $ $ Liabilities incurred Revisions — — Liabilities settled ) ) Liabilities eliminated through asset sales ) — Current period accretion expense Asset retirement obligations — end of period $ $ |
Equity and Share-Based Compen31
Equity and Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity and Share-Based Compensation | |
Summary of changes in the number of outstanding shares | Common Treasury Share count as of December 31, 2016 — Common stock issued — Acquisition of treasury stock — ) Share count as of September 30, 2017 ) (1) Treasury stock represents the net settlement on vesting of restricted stock necessary to satisfy the minimum statutory tax withholding requirements. |
Summary of non-vested restricted stock unit award activity | Restricted Stock Weighted Average Non-vested shares outstanding at December 31, 2016 $ Granted $ Vested ) $ Forfeited ) $ Non-vested shares outstanding at September 30, 2017 $ |
Summary of non-vested stock option activity | Options Range of Exercise Weighted Weighted Stock options outstanding at December 31, 2016 $ Granted $ $ Vested ) $ 19.08-20.97 $ — Forfeited ) $ $ — Stock options outstanding at September 30, 2017 $ Vested and exercisable at end of period(1) $ 19.08-20.97 $ (1) Vested and exercisable options at September 30, 2017, had no aggregate intrinsic value. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Schedule of reconciliation of net income attributable to common shareholders and weighted average common shares outstanding for basic and diluted earnings per share | Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 (in thousands, except per (in thousands, except per Net Earnings: Net income $ $ Participating securities—non-vested restricted stock ) ) Basic and diluted earnings $ $ Common Shares: Common shares outstanding — basic (1) Dilutive effect of potential common shares — — Common shares outstanding — diluted Net Earnings Per Share: Basic $ $ Diluted $ $ Antidilutive stock options (2) Antidilutive warrants (3) (1) Weighted-average common shares outstanding for basic and diluted earnings per share purposes includes 17,533 shares of common stock that, while not issued and outstanding at September 30, 2017, are required by the Plan to be issued. (2) Amount represents stock options to purchase common stock that are excluded from the diluted net earnings per share calculations because of their antidilutive effect. (3) Amount represents warrants to purchase common stock that are excluded from the diluted net earnings per share calculations because of their antidilutive effect. |
Predecessor | |
Schedule of reconciliation of net loss to preferred shareholders, common shareholders, and participating securities for purposes of computing net loss per share | Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 (in thousands, except per (in thousands, except per Net loss $ ) $ ) Preferred Dividend — — Participating securities—non-vested restricted stock — — Net loss attributable to shareholders $ ) $ ) Weighted average shares outstanding Basic and diluted net loss per share $ ) $ ) |
Organization and Business (Deta
Organization and Business (Details) | 9 Months Ended |
Sep. 30, 2017segment | |
Organization and Business | |
Number of reportable segments | 1 |
Fair Value Measurements of Fi34
Fair Value Measurements of Financial Instruments (Details) $ in Thousands | Sep. 30, 2017USD ($)item |
Fair Value Measurements of Financial Instruments | |
Number of bank counterparties for company's commodity derivative contracts | item | 4 |
Recurring | Total | Commodity Derivatives | |
Derivative Assets: | |
Total assets | $ 6,890 |
Derivative Liabilities: | |
Gross Recognized Liabilities | (4,272) |
Recurring | Total | Commodity Derivatives | Swaps | Oil | |
Derivative Assets: | |
Total assets | 722 |
Derivative Liabilities: | |
Gross Recognized Liabilities | (772) |
Recurring | Total | Commodity Derivatives | Swaps | Gas | |
Derivative Assets: | |
Total assets | 1,006 |
Recurring | Total | Commodity Derivatives | Collars | Oil | |
Derivative Assets: | |
Total assets | 2,356 |
Derivative Liabilities: | |
Gross Recognized Liabilities | (1,380) |
Recurring | Total | Commodity Derivatives | Collars | Gas | |
Derivative Assets: | |
Total assets | 2,806 |
Derivative Liabilities: | |
Gross Recognized Liabilities | (2,120) |
Recurring | Significant Other Observable Inputs (Level 2) | Commodity Derivatives | |
Derivative Assets: | |
Total assets | 6,890 |
Derivative Liabilities: | |
Gross Recognized Liabilities | (4,272) |
Recurring | Significant Other Observable Inputs (Level 2) | Commodity Derivatives | Swaps | Oil | |
Derivative Assets: | |
Total assets | 722 |
Derivative Liabilities: | |
Gross Recognized Liabilities | (772) |
Recurring | Significant Other Observable Inputs (Level 2) | Commodity Derivatives | Swaps | Gas | |
Derivative Assets: | |
Total assets | 1,006 |
Recurring | Significant Other Observable Inputs (Level 2) | Commodity Derivatives | Collars | Oil | |
Derivative Assets: | |
Total assets | 2,356 |
Derivative Liabilities: | |
Gross Recognized Liabilities | (1,380) |
Recurring | Significant Other Observable Inputs (Level 2) | Commodity Derivatives | Collars | Gas | |
Derivative Assets: | |
Total assets | 2,806 |
Derivative Liabilities: | |
Gross Recognized Liabilities | $ (2,120) |
Risk Management and Derivativ35
Risk Management and Derivative Instruments - By Nature (Details) $ in Millions | Sep. 30, 2017USD ($) |
Not designated as Hedging Instrument | Commodity Derivatives | |
Risk Management and Derivative Instruments | |
Maximum loss exposure under commodity derivative contracts on failure of the entity's counterparty's performance | $ 2.6 |
Risk Management and Derivativ36
Risk Management and Derivative Instruments- Hedging (Details) - Designated as Hedging Instrument - NYMEX | 3 Months Ended |
Sep. 30, 2017MMBTU$ / bbl$ / MMBTUbbl | |
WTI | Swap Contract Quarter Ended September 30, 2017 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 207,000 |
Swap weighted average strike price | 55.29 |
WTI | Swap Contract Quarter Ended December 31, 2017 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 276,000 |
Swap weighted average strike price | 53.58 |
WTI | Swap Contract Quarter Ended March 31, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 99,000 |
Swap weighted average strike price | 50.61 |
WTI | Swap Contract Quarter Ended June 30, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 145,600 |
Swap weighted average strike price | 51.22 |
WTI | Swap Contract Quarter Ended September 30, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 92,000 |
Swap weighted average strike price | 50.38 |
WTI | Swap Contract Quarter Ended December 31, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 92,000 |
Swap weighted average strike price | 50.38 |
WTI | Collar Contract Quarter Ended September 30, 2017 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 46,000 |
Weighted average ceiling price | 60 |
Weighted average floor price | 50 |
WTI | Collar Contract Quarter Ended December 31, 2017 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 46,000 |
Weighted average ceiling price | 60 |
Weighted average floor price | 50 |
WTI | Three Way Collar Contract Quarter Ended September 30, 2017 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 115,000 |
Weighted average ceiling price | 62.80 |
Weighted average floor price | 50 |
Weighted average sub-floor price | 40 |
WTI | Three Way Collar Contract Quarter Ended December 31, 2017 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 115,000 |
Weighted average ceiling price | 62.80 |
Weighted average floor price | 50 |
Weighted average sub-floor price | 40 |
WTI | Three Way Collar Contract Quarter Ended March 31, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 225,000 |
Weighted average ceiling price | 62.14 |
Weighted average floor price | 50 |
Weighted average sub-floor price | 40 |
WTI | Three Way Collar Contract Quarter Ended June 30, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 182,000 |
Weighted average ceiling price | 60.65 |
Weighted average floor price | 50 |
Weighted average sub-floor price | 40 |
WTI | Three Way Collar Contract Quarter Ended September 30, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 184,000 |
Weighted average ceiling price | 59.93 |
Weighted average floor price | 50 |
Weighted average sub-floor price | 40 |
WTI | Three Way Collar Contract Quarter Ended December 31, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 46,000 |
Weighted average ceiling price | 56.70 |
Weighted average floor price | 50 |
Weighted average sub-floor price | 40 |
WTI | Three Way Collar Contract Quarter Ended March 31, 2019 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 45,000 |
Weighted average ceiling price | 56.20 |
Weighted average floor price | 50 |
Weighted average sub-floor price | 40 |
WTI | Three Way Collar Contract Quarter Ended June 30, 2019 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 45,500 |
Weighted average ceiling price | 56.20 |
Weighted average floor price | 50 |
Weighted average sub-floor price | 40 |
WTI | Three Way Collar Contract Quarter Ended September 30, 2019 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 46,000 |
Weighted average ceiling price | 56.20 |
Weighted average floor price | 50 |
Weighted average sub-floor price | 40 |
WTI | Three Way Collar Contract Quarter Ended December 31, 2019 | |
Risk Management and Derivative Instruments | |
Hedge position (Bbls) | bbl | 46,000 |
Weighted average ceiling price | 56.20 |
Weighted average floor price | 50 |
Weighted average sub-floor price | 40 |
HENRY HUB | Swap Contract Quarter Ended September 30, 2017 | |
Risk Management and Derivative Instruments | |
Hedge position (MMBtu) | MMBTU | 2,944,000 |
Swap weighted average strike price | $ / MMBTU | 3.38 |
HENRY HUB | Swap Contract Quarter Ended December 31, 2017 | |
Risk Management and Derivative Instruments | |
Hedge position (MMBtu) | MMBTU | 1,907,000 |
Swap weighted average strike price | $ / MMBTU | 3.43 |
HENRY HUB | Swap Contract Quarter Ended March 31, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (MMBtu) | MMBTU | 1,350,000 |
Swap weighted average strike price | $ / MMBTU | 3.47 |
HENRY HUB | Collar Contract Quarter Ended September 30, 2017 | |
Risk Management and Derivative Instruments | |
Hedge position (MMBtu) | MMBTU | 368,000 |
Weighted average ceiling price | $ / MMBTU | 3.63 |
Weighted average floor price | $ / MMBTU | 3.15 |
HENRY HUB | Collar Contract Quarter Ended December 31, 2017 | |
Risk Management and Derivative Instruments | |
Hedge position (MMBtu) | MMBTU | 551,000 |
Weighted average ceiling price | $ / MMBTU | 3.84 |
Weighted average floor price | $ / MMBTU | 3.23 |
HENRY HUB | Three Way Collar Contract Quarter Ended December 31, 2017 | |
Risk Management and Derivative Instruments | |
Hedge position (MMBtu) | MMBTU | 610,000 |
Weighted average ceiling price | $ / MMBTU | 4.30 |
Weighted average floor price | $ / MMBTU | 3.25 |
Weighted average sub-floor price | $ / MMBTU | 2.50 |
HENRY HUB | Three Way Collar Contract Quarter Ended March 31, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (MMBtu) | MMBTU | 1,530,000 |
Weighted average ceiling price | $ / MMBTU | 4.38 |
Weighted average floor price | $ / MMBTU | 3.25 |
Weighted average sub-floor price | $ / MMBTU | 2.50 |
HENRY HUB | Three Way Collar Contract Quarter Ended June 30, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (MMBtu) | MMBTU | 1,365,000 |
Weighted average ceiling price | $ / MMBTU | 3.40 |
Weighted average floor price | $ / MMBTU | 3 |
Weighted average sub-floor price | $ / MMBTU | 2.50 |
HENRY HUB | Three Way Collar Contract Quarter Ended September 30, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (MMBtu) | MMBTU | 1,380,000 |
Weighted average ceiling price | $ / MMBTU | 3.40 |
Weighted average floor price | $ / MMBTU | 3 |
Weighted average sub-floor price | $ / MMBTU | 2.50 |
HENRY HUB | Three Way Collar Contract Quarter Ended December 31, 2018 | |
Risk Management and Derivative Instruments | |
Hedge position (MMBtu) | MMBTU | 1,380,000 |
Weighted average ceiling price | $ / MMBTU | 3.40 |
Weighted average floor price | $ / MMBTU | 3 |
Weighted average sub-floor price | $ / MMBTU | 2.50 |
HENRY HUB | Three Way Collar Contract Quarter Ended March 31, 2019 | |
Risk Management and Derivative Instruments | |
Hedge position (MMBtu) | MMBTU | 1,350,000 |
Weighted average ceiling price | $ / MMBTU | 3.40 |
Weighted average floor price | $ / MMBTU | 3 |
Weighted average sub-floor price | $ / MMBTU | 2.50 |
Risk Management and Derivativ37
Risk Management and Derivative Instruments- Balance Sheet Presentation (Details) - Commodity Derivatives - Not designated as Hedging Instrument $ in Thousands | Sep. 30, 2017USD ($) |
Total derivative fair value at period end | $ 2,618 |
Derivative assets: | |
Gross Recognized Assets | 6,890 |
Gross Amounts Offset, Assets | (3,994) |
Net Recognized Fair Value Assets | 2,896 |
Derivative liabilities: | |
Gross Recognized Liabilities | (4,272) |
Gross Amounts Offset, Liabilities | 3,994 |
Net Recognized Fair Value Liabilities | (278) |
Current Assets | |
Derivative assets: | |
Gross Recognized Assets | 5,858 |
Gross Amounts Offset, Assets | (2,962) |
Net Recognized Fair Value Assets | 2,896 |
Current Assets | Swaps | Oil | |
Total derivative fair value at period end | 49 |
Current Assets | Swaps | Gas | |
Total derivative fair value at period end | 1,006 |
Current Assets | Collars | Oil | |
Total derivative fair value at period end | 969 |
Current Assets | Collars | Gas | |
Total derivative fair value at period end | 872 |
Non-Current Assets | |
Derivative assets: | |
Gross Recognized Assets | 1,032 |
Gross Amounts Offset, Assets | (1,032) |
Current Liabilities | |
Derivative liabilities: | |
Gross Recognized Liabilities | (2,962) |
Gross Amounts Offset, Liabilities | 2,962 |
Non-Current Liabilities | |
Derivative liabilities: | |
Gross Recognized Liabilities | (1,310) |
Gross Amounts Offset, Liabilities | 1,032 |
Net Recognized Fair Value Liabilities | (278) |
Non-Current Liabilities | Swaps | Oil | |
Total derivative fair value at period end | (98) |
Non-Current Liabilities | Collars | Oil | |
Total derivative fair value at period end | 6 |
Non-Current Liabilities | Collars | Gas | |
Total derivative fair value at period end | $ (186) |
Risk Management and Derivativ38
Risk Management and Derivative Instruments - Gain Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Gains (losses) on Commodity Derivative Contracts | ||
Net cash received for commodity derivative contracts | $ (6,149) | |
Gains (losses) on commodity derivative contracts - net | $ (3,591) | 8,767 |
Not designated as Hedging Instrument | ||
Gains (losses) on Commodity Derivative Contracts | ||
Net cash received for commodity derivative contracts | 2,909 | 6,149 |
Unrealized net (losses) gains | (6,500) | 2,618 |
Gains (losses) on commodity derivative contracts - net | $ (3,591) | $ 8,767 |
Property and Equipment (Details
Property and Equipment (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017USD ($)$ / Boe | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($)$ / Boe | Sep. 30, 2017USD ($)$ / Boe | Sep. 30, 2016USD ($)$ / Boe | Dec. 31, 2016USD ($) | |
Oil and gas properties, on the basis of full-cost accounting: | ||||||
Proved properties | $ 709,647 | $ 709,647 | $ 573,150 | |||
Unproved properties | 26,178 | 26,178 | 65,080 | |||
Other property and equipment | 6,543 | 6,543 | 6,339 | |||
Less accumulated depreciation, depletion and amortization | (59,349) | (59,349) | (12,974) | |||
Net property and equipment | 683,019 | 683,019 | $ 631,595 | |||
Other information | ||||||
Proceeds from the sale of oil and gas equipment | 4,235 | |||||
Depreciation, depletion, and amortization | 15,170 | 46,471 | ||||
Oil and Gas Properties | ||||||
Other information | ||||||
Internal costs capitalized to oil and gas properties | 1,651 | 4,656 | ||||
Capitalized qualifying share-based compensation expense | 800 | 2,000 | ||||
Proceeds from the sale of oil and gas equipment | 1,400 | |||||
Gain or loss recognized on disposal of certain oil and gas equipment | $ 0 | |||||
Depletion expense | 14,575 | 44,695 | ||||
Depreciation on other property and equipment | 595 | 1,776 | ||||
Depreciation, depletion, and amortization | $ 15,170 | $ 46,471 | ||||
Depletion expense (per Boe) | $ / Boe | 7.42 | 7.29 | ||||
Depreciation on other property and equipment (per Boe) | $ / Boe | 0.30 | 0.29 | ||||
Depreciation, depletion, and amortization (per Boe) | $ / Boe | 7.72 | 7.58 | ||||
Impairment of unproved properties | $ 0 | $ 0 | ||||
Oil and Gas Properties | Property at Lincoln County, Oklahoma | Disposed of by sale | ||||||
Other information | ||||||
Proceeds from the sale of oil and gas equipment | 7,000 | |||||
Net proceeds from the sale of oil and gas equipment | $ 2,900 | |||||
Other Property and Equipment | Minimum | ||||||
Other information | ||||||
Estimated useful lives | 5 years | |||||
Other Property and Equipment | Maximum | ||||||
Other information | ||||||
Estimated useful lives | 7 years | |||||
Predecessor | ||||||
Other information | ||||||
Impairments of oil and gas properties | $ 33,887 | $ 224,584 | ||||
Depreciation, depletion, and amortization | 15,756 | 59,229 | ||||
Predecessor | Oil and Gas Properties | ||||||
Other information | ||||||
Internal costs capitalized to oil and gas properties | 1,049 | 3,311 | ||||
Capitalized qualifying share-based compensation expense | 100 | 500 | ||||
Impairments of oil and gas properties | 33,900 | 224,600 | ||||
Depletion expense | 15,231 | 57,018 | ||||
Depreciation on other property and equipment | 525 | 2,211 | ||||
Depreciation, depletion, and amortization | $ 15,756 | $ 59,229 | ||||
Depletion expense (per Boe) | $ / Boe | 5.90 | 6.92 | ||||
Depreciation on other property and equipment (per Boe) | $ / Boe | 0.20 | 0.27 | ||||
Depreciation, depletion, and amortization (per Boe) | $ / Boe | 6.10 | 7.19 |
Other Noncurrent Assets (Detail
Other Noncurrent Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Other Noncurrent Assets | ||
Deferred financing costs associated with the Exit Facility | $ 1,286 | $ 1,187 |
Field equipment inventory | 4,221 | 2,619 |
Other | 1,649 | 1,649 |
Other noncurrent assets | $ 7,156 | $ 5,455 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accrued Liabilities | ||
Accrued oil and gas capital expenditures | $ 12,281 | $ 6,118 |
Accrued revenue and royalty distributions | 17,707 | 28,262 |
Accrued lease operating and workover expense | 6,200 | 8,932 |
Accrued interest | 123 | 254 |
Accrued taxes | 2,980 | 2,537 |
Compensation and benefit related accruals | 5,133 | 3,516 |
Other | 2,563 | 4,112 |
Accrued liabilities | $ 46,987 | $ 53,731 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Changes in Company's asset retirement obligations | ||||
Asset retirement obligations - beginning of period | $ 14,200 | |||
Liabilities incurred | 259 | |||
Liabilities settled | (107) | |||
Liabilities eliminated through asset sales | (1,146) | |||
Current period accretion expense | $ 274 | 833 | ||
Asset retirement obligations - end of period | $ 14,039 | $ 14,039 | ||
Predecessor | ||||
Changes in Company's asset retirement obligations | ||||
Asset retirement obligations - beginning of period | $ 18,708 | |||
Liabilities incurred | 520 | |||
Liabilities settled | (278) | |||
Current period accretion expense | $ 452 | 1,316 | ||
Asset retirement obligations - end of period | $ 20,266 | $ 20,266 |
Debt (Details)
Debt (Details) - Exit Facility $ in Millions | May 24, 2017USD ($) | May 23, 2017 | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 27, 2017USD ($) |
Debt | |||||
Maximum borrowing capacity | $ 170 | $ 170 | $ 170 | ||
Proceeds from revolving credit facility | 128.1 | 128.1 | |||
Availability under the facility | $ 40 | ||||
Weighted-average interest rate (as a percent) | 5.70% | ||||
Unamortized debt issuance costs | $ 1.3 | 1.2 | |||
Commitment fee (as a percent) | 0.50 | ||||
Removal of cash collateral account amount with administrative agent | $ 40 | ||||
Percentage of mortgage threshold | 90.00% | 95.00% | |||
Total net indebtedness to EBITDA | 4 | 2.25 | |||
LIBOR Loans | |||||
Debt | |||||
Interest rate added to base rate (as a percent) | 4.50% | ||||
LIBOR floor rate | 1.00% | ||||
Minimum | |||||
Debt | |||||
Removed liquidity requirement of the then effective borrowing base | 20.00% | ||||
Maximum | |||||
Debt | |||||
EBITDA to interest expense coverage ratio | 2.50 | 3 | |||
Senior Revolving Credit Facility, due 2018 | |||||
Debt | |||||
Outstanding letters of credit amount | $ 1.9 | $ 1.9 |
Equity and Share-Based Compen44
Equity and Share-Based Compensation - Common Shares (Details) | 9 Months Ended |
Sep. 30, 2017shares | |
Common Stock | |
Changes in number of shares outstanding | |
Share count at the beginning of the period (in shares) | 24,994,867 |
Common stock issued (in shares) | 103,967 |
Acquisition of treasury stock (in shares) | |
Share count at the end of the period (in shares) | 25,098,834 |
Treasury Stock | |
Changes in number of shares outstanding | |
Common stock issued (in shares) | |
Acquisition of treasury stock (in shares) | (33,409) |
Treasury Stock, Shares, Ending Balance | (33,409) |
Equity and Share-Based Compen45
Equity and Share-Based Compensation - 2016 Long Term Incentive Plan (Details) - 2016 LTIP - shares | Sep. 30, 2017 | Oct. 21, 2016 |
Share-Based Compensation | ||
Number of shares available for future issuance | 3,513,950 | |
Number of shares authorized | 2,299,088 |
Equity and Share-Based Compen46
Equity and Share-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Nov. 09, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | |
Restricted Stock | |||
Non-vested shares outstanding at the beginning of the period (in shares) | 494,794 | 685,662 | |
Granted (in shares) | 17,500 | ||
Vested (in shares) | (174,135) | (103,967) | |
Forfeited (in shares) | (104,401) | ||
Non-vested shares outstanding at the end of the period (in shares) | 494,794 | 494,794 | |
Weighted Average Grant Date Fair Value | |||
Non-vested shares outstanding at the beginning of the period (in dollars per share) | $ 19.63 | $ 19.66 | |
Granted (in dollars per share) | 18.62 | ||
Vested (in dollars per share) | 19.66 | ||
Forfeited (in dollars per share) | 19.66 | ||
Non-vested shares outstanding at the end of the period (in dollars per share) | $ 19.63 | $ 19.63 | |
Mr. Brace (Former President and CEO) | |||
Additional information | |||
Accelerated compensation expense | $ 0.8 | $ 0.8 | |
2016 LTIP | |||
Additional information | |||
Unrecognized expense for share-based compensation | $ 3.9 | $ 3.9 | |
Weighted-average period for over which unrecognized expense will be recognized | 1 year 2 months 12 days | ||
2016 LTIP | Employees | |||
Share-Based Compensation | |||
Vesting period | 3 years | ||
Awards vesting on the six-month anniversary of the Effective Date | 2016 LTIP | Employees | |||
Share-Based Compensation | |||
Percentage of awards vesting on each anniversary of the grant | 16.67% | ||
Awards vesting on the twelve-month anniversary of the Effective Date | 2016 LTIP | Employees | |||
Share-Based Compensation | |||
Percentage of awards vesting on each anniversary of the grant | 16.67% | ||
Awards vesting on the twenty four-month anniversary of the Effective Date | 2016 LTIP | Employees | |||
Share-Based Compensation | |||
Percentage of awards vesting on each anniversary of the grant | 33.33% | ||
Awards vesting on the thirty six-month anniversary of the Effective Date | 2016 LTIP | Employees | |||
Share-Based Compensation | |||
Percentage of awards vesting on each anniversary of the grant | 33.33% |
Equity and Share-Based Compen47
Equity and Share-Based Compensation - Stock Options (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Nov. 09, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Additional information | ||||
Vested (in shares) | 171,885 | |||
2016 LTIP | ||||
Share-Based Compensation | ||||
Vesting period | 3 years | |||
Expiration period (in years) | 10 years | |||
Options | ||||
Stock options outstanding at beginning of period (in shares) | 423,438 | 627,806 | ||
Granted (in shares) | 4,000 | |||
Vested (in shares) | (103,967) | |||
Forfeited (in shares) | (104,401) | |||
Stock options outstanding at end of period (in shares) | 423,438 | 423,438 | 627,806 | |
Vested and exercisable at end of period (in shares) | 103,967 | 103,967 | ||
Weighted Average Exercise Price | ||||
Stock options outstanding at beginning of period (in dollars per share) | $ 19.66 | $ 19.66 | ||
Granted (in dollars per share) | 19.08 | |||
Weighted average vested price of vested options (in dollars per share) | 19.66 | |||
Forfeited (in dollars per share) | 19.66 | |||
Stock options outstanding at end of period (in dollars per share) | $ 19.66 | 19.66 | $ 19.66 | |
Vested and exercisable at end of period (in dollars per share) | $ 19.66 | $ 19.66 | ||
Weighted Average Remaining Contractual Term (Years) | ||||
Granted (in years) | 9 years 6 months | |||
Stock options outstanding at end of period (in years) | 9 years 1 month 6 days | 9 years 1 month 6 days | ||
Vested and exercisable at end of period (in years) | 9 years 1 month 6 days | |||
Vested and exercisable options, aggregate intrinsic value | $ 0 | $ 0 | ||
Additional information | ||||
Unrecognized expense for share-based compensation | $ 1,900 | $ 1,900 | ||
Weighted-average period for over which unrecognized expense will be recognized | 1 year 3 months 18 days | |||
2016 LTIP | Minimum | ||||
Weighted Average Exercise Price | ||||
Weighted average vested price of vested options (in dollars per share) | $ 19.08 | |||
Vested and exercisable at end of period (in dollars per share) | $ 19.08 | 19.08 | ||
2016 LTIP | Maximum | ||||
Weighted Average Exercise Price | ||||
Weighted average vested price of vested options (in dollars per share) | 20.97 | |||
Vested and exercisable at end of period (in dollars per share) | $ 20.97 | $ 20.97 | ||
Awards vesting on the six-month anniversary of the Effective Date | 2016 LTIP | ||||
Share-Based Compensation | ||||
Percentage of awards vesting on each anniversary of the grant | 16.67% | |||
Awards vesting on the twelve-month anniversary of the Effective Date | 2016 LTIP | ||||
Share-Based Compensation | ||||
Percentage of awards vesting on each anniversary of the grant | 16.67% | |||
Awards vesting on the twenty four-month anniversary of the Effective Date | 2016 LTIP | ||||
Share-Based Compensation | ||||
Percentage of awards vesting on each anniversary of the grant | 33.33% | |||
Awards vesting on the thirty six-month anniversary of the Effective Date | 2016 LTIP | ||||
Share-Based Compensation | ||||
Percentage of awards vesting on each anniversary of the grant | 33.33% | |||
Mr. Brace (Former President and CEO) | ||||
Additional information | ||||
Accelerated compensation expense | $ 400 | $ 400 |
Equity and Share-Based Compen48
Equity and Share-Based Compensation - Non-Employee Director Restricted Stock Units Containing a Market Condition (Details) - Restricted Stock Units with Market Condition - Non-employee directors - USD ($) $ / shares in Units, $ in Millions | Nov. 23, 2016 | Sep. 30, 2017 |
Share-Based Compensation | ||
Trailing average share price period based on common stock (in days) | 60 days | |
Assumptions used to estimate fair value of restricted stock unit awards with market condition | ||
Market Price Hurdle (in dollars per share) | $ 30 | |
Service period (in years) | 1 year | |
Calculated fair value per restricted stock unit (in dollars per share) | $ 11.05 | |
Unrecognized expense for share-based compensation | $ 0.1 | |
Weighted-average period for over which unrecognized expense will be recognized | 1 month 6 days | |
Accrued liabilities | ||
Assumptions used to estimate fair value of restricted stock unit awards with market condition | ||
Liability related to market condition awards | $ 0.7 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Income Taxes | |
Income tax expense or benefit | $ 0 |
Statutory rate | 35.00% |
Decrease in valuation allowance | $ 13 |
Valuation allowance | 147.8 |
Current income taxes | $ 0 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings (Loss) Per Share | ||||
Net income (loss) | $ 3,663 | $ 35,890 | ||
Participating securities-non-vested restricted stock | (82) | (932) | ||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 3,581 | $ 34,958 | ||
Common shares outstanding - basic | 25,116 | 25,074 | ||
Common shares outstanding - diluted | 25,116 | 25,074 | ||
Basic (in dollars per share) | $ 0.14 | $ 1.39 | ||
Diluted (in dollars per share) | $ 0.14 | $ 1.39 | ||
Shares of common stock to be issued by required Plan | 17,533 | |||
Weighted average shares outstanding | 25,116 | 25,074 | ||
Basic and diluted net income/( loss ) per share | $ 0.14 | $ 1.39 | ||
Stock Options | ||||
Earnings (Loss) Per Share | ||||
Antidilutive securities (in shares) | 424 | 526 | ||
Warrants | ||||
Earnings (Loss) Per Share | ||||
Antidilutive securities (in shares) | 6,626 | 6,626 | ||
Predecessor | ||||
Earnings (Loss) Per Share | ||||
Net income (loss) | $ (38,384) | $ (208,696) | ||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (38,384) | $ (208,696) | ||
Weighted average shares outstanding | 10,657 | 10,644 | ||
Basic and diluted net income/( loss ) per share | $ (3.60) | $ (19.61) |
Related Party Transactions (Det
Related Party Transactions (Details) - EcoStim - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transactions | ||||
Percentage of outstanding membership interest of related party in another related party | 25.50% | 25.50% | ||
Well stimulation and completion services | ||||
Related Party Transactions | ||||
Amount paid to related party | $ 5.9 | $ 7.3 | ||
Predecessor | Well stimulation and completion services | ||||
Related Party Transactions | ||||
Amount paid to related party | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Contractual Obligations | ||
Loss Contingency Accrual | $ 1.4 | $ 1.1 |
Insurance Claims | ||
Contractual Obligations | ||
Insurance reimbursement claim | $ 1.9 |
Subsequent Event (Details)
Subsequent Event (Details) | Oct. 25, 2017directorshares | Oct. 24, 2017director | Sep. 30, 2017shares |
Restricted Stock Units | |||
Subsequent Event | |||
Units granted (in shares) | 17,500 | ||
Subsequent event | |||
Subsequent Event | |||
Number of directors | director | 8 | 7 | |
Subsequent event | Mr. Sambrooks (President and CEO) | Restricted Stock Units | |||
Subsequent Event | |||
Units granted (in shares) | 67,889 | ||
Vesting period | 3 years | ||
Subsequent event | Mr. Sambrooks (President and CEO) | Restricted Stock Units | Awards vesting on the twelve-month anniversary of the Effective Date | |||
Subsequent Event | |||
Percentage of awards vesting on each anniversary of the grant | 33.33% | ||
Subsequent event | Mr. Sambrooks (President and CEO) | Restricted Stock Units | Awards vesting on the twenty four-month anniversary of the Effective Date | |||
Subsequent Event | |||
Percentage of awards vesting on each anniversary of the grant | 33.33% | ||
Subsequent event | Mr. Sambrooks (President and CEO) | Restricted Stock Units | Awards vesting on the thirty six-month anniversary of the Effective Date | |||
Subsequent Event | |||
Percentage of awards vesting on each anniversary of the grant | 33.33% | ||
Subsequent event | Mr. Sambrooks (President and CEO) | Performance stock units | |||
Subsequent Event | |||
Units granted (in shares) | 135,778 |