Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35512 | |
Entity Registrant Name | Amplify Energy Corp. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-1326219 | |
Entity Address, Address Line One | 500 Dallas Street | |
Entity Address, Address Line Two | Suite 1700 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 490-8900 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | AMPY | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 38,327,143 | |
Entity Central Index Key | 0001533924 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 15,605 | $ 18,799 |
Accounts receivable, net (see Note 12) | 91,932 | 91,967 |
Short-term derivative instruments | 234 | |
Prepaid expenses and other current assets | 14,266 | 15,018 |
Total current assets | 122,037 | 125,784 |
Property and equipment, at cost: | ||
Oil and natural gas properties, successful efforts method | 806,959 | 799,532 |
Support equipment and facilities | 145,325 | 145,324 |
Other | 9,641 | 9,641 |
Accumulated depreciation, depletion and amortization | (639,847) | (634,212) |
Property and equipment, net | 322,078 | 320,285 |
Restricted investments | 7,297 | 4,622 |
Operating lease - long term right-of-use asset | 3,158 | 2,716 |
Other long-term assets | 1,560 | 1,693 |
Total assets | 456,130 | 455,100 |
Current liabilities: | ||
Accounts payable | 26,578 | 33,819 |
Revenues payable | 21,862 | 20,374 |
Accrued liabilities (see Note 12) | 53,896 | 57,826 |
Short-term derivative instruments | 103,887 | 53,144 |
Total current liabilities | 206,223 | 165,163 |
Long-term debt (see Note 7) | 225,000 | 230,000 |
Asset retirement obligations | 104,118 | 102,398 |
Long-term derivative instruments | 20,846 | 9,664 |
Operating lease liability | 2,549 | 2,017 |
Other long-term liabilities | 10,397 | 10,699 |
Total liabilities | 569,133 | 519,941 |
Commitments and contingencies (see Note 14) | ||
Stockholders' equity (deficit): | ||
Preferred stock, $0.01 par value: 50,000,000 shares authorized; no shares issued and outstanding at March 31, 2022 and December 31, 2021 | 0 | 0 |
Warrants, 2,173,913 warrants issued and outstanding at March 31, 2022 and December 31, 2021 | 4,788 | 4,788 |
Common stock, $0.01 par value: 250,000,000 shares authorized; 38,260,182 and 38,024,142 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 384 | 382 |
Additional paid-in capital | 425,516 | 425,066 |
Accumulated deficit | (543,691) | (495,077) |
Total stockholders' deficit | (113,003) | (64,841) |
Total liabilities and equity | $ 456,130 | $ 455,100 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 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 issued | 2,173,913 | 2,173,913 |
Warrants outstanding | 2,173,913 | 2,173,913 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 38,260,182 | 38,024,142 |
Common stock, shares outstanding | 38,260,182 | 38,024,142 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total revenues | $ 111,433 | $ 72,469 |
Costs and expenses: | ||
Lease operating expense | 32,920 | 28,906 |
Gathering, processing and transportation | 8,010 | 4,579 |
Taxes other than income | 7,553 | 4,613 |
Depreciation, depletion and amortization | 5,635 | 7,347 |
General and administrative expense | 7,771 | 6,921 |
Accretion of asset retirement obligations | 1,720 | 1,615 |
Loss on commodity derivative instruments | 93,404 | 34,588 |
Pipeline incident loss | 580 | 0 |
Other, net | 35 | 84 |
Total costs and expenses | 157,628 | 88,653 |
Operating loss | (46,195) | (16,184) |
Other (expense) income: | ||
Interest expense, net | (2,441) | (3,112) |
Other expense | 22 | (26) |
Total other expense | (2,419) | (3,138) |
Loss before reorganization items, net and income taxes | (48,614) | (19,322) |
Reorganization items, net | 0 | (6) |
Income tax expense | 0 | 0 |
Net loss | $ (48,614) | $ (19,328) |
Loss per share: (See Note 9) | ||
Basic loss per share | $ (1.27) | $ (0.51) |
Diluted loss per share | $ (1.27) | $ (0.51) |
Weighted average common shares outstanding: | ||
Basic | 38,181 | 37,829 |
Diluted | 38,181 | 37,829 |
Oil and Natural Gas Sales [Member] | ||
Revenues: | ||
Total revenues | $ 93,872 | $ 72,331 |
Other Revenues [Member] | ||
Revenues: | ||
Total revenues | $ 17,561 | $ 138 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (48,614) | $ (19,328) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 5,635 | 7,347 |
Loss on derivative instruments | 92,847 | 34,526 |
Cash settlements paid on expired derivative instruments | (31,157) | (11,100) |
Bad debt expense | 10 | 3 |
Amortization and write-off of deferred financing costs | 133 | 139 |
Accretion of asset retirement obligations | 1,720 | 1,615 |
Share-based compensation (see Note 10) | 518 | (204) |
Settlement of asset retirement obligations | 0 | (162) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6,661) | (4,525) |
Prepaid expenses and other assets | (804) | 2,574 |
Payables and accrued liabilities | (3,436) | 4,849 |
Other | (472) | (176) |
Net cash provided by operating activities | 9,719 | 15,558 |
Cash flows from investing activities: | ||
Additions to oil and gas properties | (5,172) | (3,788) |
Additions to other property and equipment | (328) | |
Additions to restricted investments | (2,675) | 0 |
Net cash used in investing activities | (7,847) | (4,116) |
Cash flows from financing activities: | ||
Payments on revolving credit facility | (5,000) | (5,000) |
Shares withheld for taxes | (66) | (5) |
Net cash used in financing activities | (5,066) | (5,005) |
Net change in cash and cash equivalents | (3,194) | 6,437 |
Cash and cash equivalents, beginning of period | 18,799 | 10,364 |
Cash and cash equivalents, end of period | $ 15,605 | $ 16,801 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) - USD ($) $ in Thousands | Common Stock [Member] | Warrant [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2020 | $ 378 | $ 4,788 | $ 424,104 | $ (463,007) | $ (33,737) |
Net loss | 0 | 0 | 0 | (19,328) | (19,328) |
Share-based compensation expense | 0 | 0 | (204) | 0 | (204) |
Shares withheld for taxes | 0 | 0 | (5) | 0 | (5) |
Other | 3 | 0 | (3) | 0 | 0 |
Balance at Mar. 31, 2021 | 381 | 4,788 | 423,892 | (482,335) | (53,274) |
Balance at Dec. 31, 2021 | 382 | 4,788 | 425,066 | (495,077) | (64,841) |
Net loss | 0 | 0 | 0 | (48,614) | (48,614) |
Share-based compensation expense | 0 | 0 | 518 | 0 | 518 |
Shares withheld for taxes | 0 | 0 | (66) | 0 | (66) |
Other | 2 | 0 | (2) | 0 | 0 |
Balance at Mar. 31, 2022 | $ 384 | $ 4,788 | $ 425,516 | $ (543,691) | $ (113,003) |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization and Basis of Presentation | |
Organization and Basis of Presentation | Note 1. Organization and Basis of Presentation General Amplify Energy Corp. (“Amplify Energy,” “it” or the “Company”) is a publicly traded Delaware corporation whose common stock is listed on the NYSE under the symbol “AMPY.” The Company operates in one reportable segment engaged in the acquisition, development, exploitation and production of oil and natural gas properties. The Company’s management evaluates performance based on one reportable business segment as the economic environments are not different within the operation of its oil and natural gas properties. The Company’s assets consist primarily of producing oil and natural gas properties and are located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas / North Louisiana and the Eagle Ford. Most of the Company’s oil and natural gas properties are located in large, mature oil and natural gas reservoirs. The Company’s properties consist primarily of operated and non-operated working interests in producing and undeveloped leasehold acreage and working interests in identified producing wells. Basis of Presentation The Company’s Unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and guidelines of the SEC. The results reported in these Unaudited Condensed Consolidated Financial Statements should not necessarily be taken as indicative of results that may be expected for the entire year. In the Company’s opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments of a normal recurring nature necessary for fair presentation. Although the Company believes the disclosures in these financial statements are adequate, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. Material intercompany transactions and balances have been eliminated in preparation of the Company’s consolidated financial statements. Use of Estimates The preparation of the accompanying Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include, but are not limited to, oil and natural gas reserves; depreciation, depletion and amortization of proved oil and natural gas properties; future cash flows from oil and natural gas properties; impairment of long-lived assets; fair value of derivatives; fair value of equity compensation; fair values of assets acquired and liabilities assumed in business combinations and asset retirement obligations. Market Conditions and COVID-19 Since the start of the COVID-19 pandemic, governments have tried to slow the spread of the virus by imposing social distancing guidelines, travel restrictions and stay-at-home orders, among other actions, which caused a significant decrease in activity in the global economy and the demand for oil and to a lesser extent natural gas and NGLs. As vaccines have become widely available, social distancing guidelines, travel restrictions and stay-at-home orders have eased, activity in the global economy has increased and demand for oil, natural gas and NGLs and related commodity pricing, has improved. Additionally, oil, natural gas and NGLs prices increased in the first quarter of 2022 when compared to the same period of 2021 and, as a result, we experienced a significant increase in revenues. As we continue to monitor the impact of the actions of the Organization of the Petroleum Exporting Countries and other large producing nations, the Russia-Ukraine conflict, global inventories of oil and gas and the uncertainty associated with recovering oil demand, future monetary policy and governmental policies aimed at transitioning towards lower carbon energy, we expect prices for some or all of the commodities we produce to remain volatile. Other factors such as the duration of the COVID-19 pandemic and the speed and effectiveness of vaccine distributions or other medical advances to combat the virus may impact the recovery of world economic growth and the demand for oil, natural gas and NGLs. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies There have been no changes to the Company’s significant accounting policies and estimates as described in the Company’s annual financial statements included in its 2021 Form 10-K. New Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue | |
Revenue | Note 3. Revenue Revenue from Contracts with Customers Revenue is recognized when the following five steps are completed: (1) identify the contract with the customer, (2) identify the performance obligation (promise) in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, (5) recognize revenue when the reporting organization satisfies a performance obligation. The Company has determined that its contracts for the sale of crude oil, unprocessed natural gas, residue gas and NGLs contain monthly performance obligations to deliver product at locations specified in the contract. Control is transferred at the delivery location, at which point the performance obligation has been satisfied and revenue is recognized. Fees included in the contract that are incurred prior to control transfer are classified as gathering, processing and transportation, and fees incurred after control transfers are included as a reduction to the transaction price. The transaction price at which revenue is recognized consists entirely of variable consideration based on quoted market prices less various fees and the quantity of volumes delivered. Disaggregation of Revenue The Company has identified three material revenue streams in its business: oil, natural gas and NGLs. The following table presents the Company’s revenues disaggregated by revenue stream. For the Three Months Ended March 31, 2022 2021 Revenues Oil $ 52,374 $ 49,695 NGLs 13,481 7,670 Natural gas 28,017 14,966 Oil and natural gas sales $ 93,872 $ 72,331 Contract Balances Under the Company’s sales contracts, the Company invoices customers once its performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s contracts do not give rise to contract assets or liabilities. Accounts receivable attributable to the Company’s revenue contracts with customers was $39.9 million at March 31, 2022 and $32.4 million at December 31, 2021. |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements of Financial Instruments | |
Fair Value Measurements of Financial Instruments | Note 4. Fair Value Measurements of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value estimates are based on either (i) actual market data or (ii) assumptions that other market participants would use in pricing an asset or liability, including estimates of risk. A three-tier hierarchy has been established that classifies fair value amounts recognized or disclosed in the financial statements. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). All the derivative instruments reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets were considered Level 2. The carrying values of accounts receivables, accounts payables (including accrued liabilities), restricted investments and amounts outstanding under long-term debt agreements with variable rates included in the accompanying Unaudited Condensed Consolidated Balance Sheets approximated fair value at March 31, 2022 and December 31, 2021. The fair value estimates are based upon observable market data and are classified within Level 2 of the fair value hierarchy. These assets and liabilities are not presented in the following tables. Assets and Liabilities Measured at Fair Value on a Recurring Basis The fair market values of the derivative financial instruments reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 were based on estimated forward commodity prices. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement in its entirety. The significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The following tables present the gross derivative assets and liabilities that are measured at fair value on a recurring basis at March 31, 2022 and December 31, 2021 for each of the fair value hierarchy levels: Fair Value Measurements at March 31, 2022 Significant Quoted Prices in Significant Other Unobservable Active Market Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Fair Value (In thousands) Assets: Commodity derivatives $ — $ 11,819 $ — $ 11,819 Interest rate derivatives — 234 — 234 Total assets $ — $ 12,053 $ — $ 12,053 Liabilities: Commodity derivatives $ — $ 136,465 $ — $ 136,465 Interest rate derivatives — 87 — 87 Total liabilities $ — $ 136,552 $ — $ 136,552 Fair Value Measurements at December 31, 2021 Significant Quoted Prices in Significant Other Unobservable Active Market Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Fair Value (In thousands) Assets: Commodity derivatives $ — $ 7,967 $ — $ 7,967 Interest rate derivatives — — — — Total assets $ — $ 7,967 $ — $ 7,967 Liabilities: Commodity derivatives $ — $ 70,152 $ — $ 70,152 Interest rate derivatives — 623 — 623 Total liabilities $ — $ 70,775 $ — $ 70,775 See Note 5 for additional information regarding the Company’s derivative instruments. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are reported at fair value on a nonrecurring basis, as reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets. The following methods and assumptions are used to estimate the fair values: ● The fair value of asset retirement obligations (“AROs”) is based on discounted cash flow projections using numerous estimates, assumptions and judgments regarding factors such as the existence of a legal obligation for an ARO; amounts and timing of settlements; the credit-adjusted risk-free rate; and inflation rates. The initial fair value estimates are based on unobservable market data and are classified within Level 3 of the fair value hierarchy. See Note 6 for a summary of changes in AROs. ● Proved oil and natural gas properties are reviewed for impairment when events and circumstances indicate a possible decline in the recoverability of the carrying value of such properties. The Company uses an income approach based on the discounted cash flow method, whereby the present value of expected future net cash flows is discounted by applying an appropriate discount rate, for purposes of placing a fair value on the assets. The future cash flows are based on management’s estimates for the future. The unobservable inputs used to determine fair value include, but are not limited to, estimates of proved reserves, estimates of probable reserves, future commodity prices, the timing of future production and capital expenditures and a discount rate commensurate with the risk reflective of the lives remaining for the respective oil and natural gas properties (some of which are Level 3 inputs within the fair value hierarchy). ● No impairment expense recorded on proved oil and natural gas properties during the three months ended March 31, 2022 and 2021. |
Risk Management and Derivative
Risk Management and Derivative Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Risk Management and Derivative Instruments | |
Risk Management and Derivative Instruments | Note 5. Risk Management and Derivative Instruments Derivative instruments are utilized to manage exposure to commodity price fluctuations and achieve a more predictable cash flow in connection with natural gas and oil sales from production and borrowing related activities. These instruments limit exposure to declines in prices but also limit the benefits that would be realized if prices increase. Certain inherent business risks are associated with commodity derivative contracts, including market risk and credit risk. Market risk is the risk that the price of natural gas or oil will change, either favorably or unfavorably, in response to changing market conditions. Credit risk is the risk of loss from nonperformance by the counterparty to a contract. It is the Company’s policy to enter into derivative contracts only with creditworthy counterparties, which generally are financial institutions, deemed by management as competent and competitive market makers. Some of the lenders, or certain of their affiliates, under the Company’s current credit agreements are counterparties to its derivative contracts. While collateral is generally not required to be posted by counterparties, credit risk associated with derivative instruments is minimized by limiting exposure to any single counterparty and entering into derivative instruments only with creditworthy counterparties that are generally large financial institutions. Additionally, master netting agreements are used to mitigate risk of loss due to default with counterparties on derivative instruments. The Company has also entered into International Swaps and Derivatives Association Master Agreements (“ISDA Agreements”) with each of its counterparties. The terms of the ISDA Agreements provide the Company and each of its counterparties with rights of set-off upon the occurrence of defined acts of default by either the Company or its counterparty to a derivative, whereby the party not in default may set-off all liabilities owed to the defaulting party against all net derivative asset receivables from the defaulting party. See Note 7 for additional information regarding the Company’s Revolving Credit Facility. Commodity Derivatives The Company may use a combination of commodity derivatives (e.g., floating-for-fixed swaps, put options, costless collars and three-way collars) to manage exposure to commodity price volatility. The Company recognizes all derivative instruments at fair value. The Company enters into natural gas derivative contracts that are indexed to NYMEX-Henry Hub. The Company also enters into oil derivative contracts indexed to NYMEX-WTI. The Company’s NGL derivative contracts are primarily indexed to OPIS Mont Belvieu. At March 31, 2022, the Company had the following open commodity positions: 2022 2023 Natural Gas Derivative Contracts: Fixed price swap contracts: Average monthly volume (MMBtu) 695,000 — Weighted-average fixed price $ 2.56 $ — Collar contracts: Two-way collars Average monthly volume (MMBtu) 775,000 690,000 Weighted-average floor price $ 2.56 $ 2.92 Weighted-average ceiling price $ 3.44 $ 3.84 Crude Oil Derivative Contracts: Fixed price swap contracts: Average monthly volume (Bbls) 61,667 55,000 Weighted-average fixed price $ 49.17 $ 57.30 Collar contracts: Two-way collars Average monthly volume (Bbls) 20,000 — Weighted-average floor price $ 58.75 $ — Weighted-average ceiling price $ 68.31 $ — Three-way collars Average monthly volume (Bbls) 89,000 30,000 Weighted-average ceiling price $ 55.55 $ 67.15 Weighted-average floor price $ 42.92 $ 55.00 Weighted-average sub-floor price $ 32.58 $ 40.00 Interest Rate Swaps Periodically, the Company enters into interest rate swaps to mitigate exposure to market rate fluctuations by converting variable interest rates such as those in its Credit Agreement to fixed interest rates. At March 31, 2022, the Company had the following interest rate swap open positions: Remaining 2022 Average Monthly Notional (in thousands) $ 75,000 Weighted-average fixed rate 1.281 % Floating rate 1 Month LIBOR Balance Sheet Presentation The following table summarizes both: (i) the gross fair value of derivative instruments by the appropriate balance sheet classification even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the balance sheet and (ii) the net recorded fair value as reflected on the balance sheet at March 31, 2022 and December 31, 2021. There was no cash collateral received or pledged associated with the Company’s derivative instruments since most of its counterparties, or certain of its affiliates, to its derivative contracts are lenders under its Revolving Credit Facility. Asset Liability Asset Liability Derivatives Derivatives Derivatives Derivatives March 31, March 31, December 31, December 31, Type Balance Sheet Location 2022 2022 2021 2021 (In thousands) Commodity contracts Short-term derivative instruments $ 9,470 $ 113,270 $ 4,804 $ 57,325 Interest rate swaps Short-term derivative instruments 234 87 — 623 Gross fair value 9,704 113,357 4,804 57,948 Netting arrangements (9,470) (9,470) (4,804) (4,804) Net recorded fair value Short-term derivative instruments $ 234 $ 103,887 $ — $ 53,144 Commodity contracts Long-term derivative instruments $ 2,349 $ 23,195 $ 3,163 $ 12,827 Interest rate swaps Long-term derivative instruments — — — — Gross fair value 2,349 23,195 3,163 12,827 Netting arrangements (2,349) (2,349) (3,163) (3,163) Net recorded fair value Long-term derivative instruments $ — $ 20,846 $ — $ 9,664 Loss (Gain) on Derivative Instruments The Company does not designate derivative instruments as hedging instruments for accounting and financial reporting purposes. Accordingly, all gains and losses, including changes in the derivative instruments’ fair values, have been recorded in the accompanying Unaudited Condensed Consolidated Statements of Operations. The following table details the gains and losses related to derivative instruments for the periods indicated (in thousands): For the Three Months Ended Statements of March 31, Operations Location 2022 2021 Commodity derivative contracts Loss on commodity derivatives $ 93,404 $ 34,588 Gain on interest rate derivatives Interest expense, net (557) (62) |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2022 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | Note 6. Asset Retirement Obligations The Company’s asset retirement obligations primarily relate to the Company’s portion of future plugging and abandonment costs for wells and related facilities. The following table presents the changes in the asset retirement obligations for the three months ended March 31, 2022 (in thousands): Asset retirement obligations at beginning of period $ 103,414 Liabilities added from acquisition or drilling — Liabilities settled — Liabilities removed upon sale of wells — Accretion expense 1,720 Revision of estimates — Asset retirement obligation at end of period 105,134 Less: Current portion 1,016 Asset retirement obligations - long-term portion $ 104,118 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Long-Term Debt | |
Long-Term Debt | Note 7. Long-Term Debt The following table presents the Company’s consolidated debt obligations at the dates indicated: March 31, December 31, 2022 2021 (In thousands) Revolving Credit Facility (1) $ 225,000 $ 230,000 Total long-term debt $ 225,000 $ 230,000 (1) The carrying amount of the Company’s Revolving Credit Facility approximates fair value because the interest rates are variable and reflective of market rates. Revolving Credit Facility Amplify Energy Operating LLC, the Company’s wholly owned subsidiary (“OLLC”), is a party to a reserve-based revolving credit facility (the “Revolving Credit Facility”), subject to a borrowing base of $235.0 million as of March 31, 2022, which is guaranteed by the Company and all of its current subsidiaries. The Revolving Credit Facility matures on November 2, 2023. The Company’s borrowing base under its Revolving Credit Facility is subject to redetermination on at least a semi-annual basis, primarily based on a reserve engineering report. As of March 31, 2022, the Company was in compliance with all the financial (current ratio and total leverage ratio) and non-financial covenants associated with its Revolving Credit Facility. The Fall 2021 semi-annual borrowing base redetermination in November 2021, resulted in (1) the reaffirmation of the $245.0 million borrowing base and (2) subsequent reductions to the borrowing base of $5.0 million per month beginning February 28, 2022 and continuing until the completion of the next regularly scheduled redetermination. The Company expects to complete the next regularly scheduled redetermination during the second quarter 2022. As of April 30, 2022, the Company’s borrowing base was $230.0 million, which reflects the previously agreed-upon borrowing base reductions of $5.0 million in February, March and April 2022. Weighted-Average Interest Rates The following table presents the weighted-average interest rates paid, excluding commitment fees, on the Company’s consolidated variable-rate debt obligations for the periods presented: For the Three Months Ended March 31, 2022 2021 Revolving Credit Facility 3.79 % 3.67 % Letters of Credit At March 31, 2022, the Company had no letters of credit outstanding. Unamortized Deferred Financing Costs Unamortized deferred financing costs associated with the Company’s Revolving Credit Facility was $0.8 million at March 31, 2022. Paycheck Protection Program On April 24, 2020, the Company received a $5.5 million PPP Loan. The PPP Loan was established as part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to provide loans to qualifying businesses. The PPP Loan was not part of the Revolving Credit Facility as described above. The loan and accrued interest were potentially forgivable provided that the borrower uses the loan proceeds for eligible purposes. The term of the Company’s PPP Loan was two years with an annual interest rate of 1% and no payments of principal or interest due during the six-month period beginning on the date of the PPP Loan. The Company applied for forgiveness of the amount due on the PPP Loan based on spending the loan proceeds on eligible expenses as defined by the statute. On June 22, 2021, KeyBank notified the Company that the PPP Loan had been approved for full and complete forgiveness by the Small Business Association. |
Equity (Deficit)
Equity (Deficit) | 3 Months Ended |
Mar. 31, 2022 | |
Equity (Deficit) | |
Equity (Deficit) | Note 8. Equity (Deficit) Common Stock The Company’s authorized capital stock includes 250,000,000 shares of common stock, $0.01 par value per share. The following is a summary of the changes in the Company’s common stock issued for the three months ended March 31, 2022: Common Stock Balance, December 31, 2021 38,024,142 Issuance of common stock — Restricted stock units vested 326,440 Shares withheld for taxes (1) (90,400) Balance, March 31, 2022 38,260,182 (1) Represents the net settlement on vesting of restricted stock necessary to satisfy the minimum statutory tax withholding requirements. Warrants On May 4, 2017, Legacy Amplify entered into a warrant agreement with American Stock Transfer & Trust Company, LLC, as warrant agent, pursuant to which Legacy Amplify issued warrants to purchase up to 2,173,913 shares of Legacy Amplify’s common stock, exercisable for a five-year period commencing on May 4, 2017 at an exercise price of $42.60 per share. The warrants expired on May 4, 2022. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings per Share | |
Earnings per Share | Note 9. Earnings per Share The following sets forth the calculation of earnings (loss) per share, or EPS, for the periods indicated (in thousands, except per share amounts): For the Three Months Ended March 31, 2022 2021 Net loss $ (48,614) $ (19,328) Less: Net income allocated to participating restricted stockholders — — Basic and diluted earnings available to common stockholders $ (48,614) $ (19,328) Common shares: Common shares outstanding — basic 38,181 37,829 Dilutive effect of potential common shares — — Common shares outstanding — diluted 38,181 37,829 Net loss per share: Basic $ (1.27) $ (0.51) Diluted $ (1.27) $ (0.51) Antidilutive warrants (1) 2,174 2,174 (1) Amount represents warrants to purchase common stock that are excluded from the diluted net earnings per share calculations because of their antidilutive effect . |
Long-Term Incentive Plans
Long-Term Incentive Plans | 3 Months Ended |
Mar. 31, 2022 | |
Long-Term Incentive Plans | |
Long-Term Incentive Plans | Note 10. Long-Term Incentive Plans In May 2021, the shareholders approved a new Equity Incentive Plan (“EIP”) in which the Legacy Amplify Management Incentive Plan (the “Legacy Amplify MIP”) and the Legacy Amplify 2017 Non-Employee Directors Compensation Plan (the “Legacy Amplify Non-Employee Directors Compensation Plan”) were replaced by the EIP and no further awards will be allowed to be granted under the Legacy Amplify MIP or the Legacy Amplify Non-Employee Directors Compensation Plan. As of March 31, 2022, an aggregate of 1,564,669 shares were available for future grants under the EIP. Restricted Stock Units Restricted Stock Units with Service Vesting Condition The restricted stock units with service vesting conditions (“TSUs”) are accounted for as equity-classified awards. The grant-date fair value is recognized as compensation cost on a straight-line basis over the requisite service period and forfeitures are accounted for as they occur. Compensation costs are recorded as general and administrative expense. The unrecognized cost associated with the TSUs was $4.9 million at March 31, 2022. The Company expects to recognize the unrecognized compensation cost for these awards over a weighted-average period of approximately 2.4 years. The following table summarizes information regarding the TSUs granted under the EIP for the period presented: Weighted- Average Grant- Number of Date Fair Value Units per Unit (1) TSUs outstanding at December 31, 2021 1,074,420 $ 3.66 Granted (2) 834,374 $ 3.64 Forfeited (18,523) $ 3.52 Vested (277,345) $ 3.60 TSUs outstanding at March 31, 2022 1,612,926 $ 3.66 (1) Determined by dividing the aggregate grant-date fair value of awards by the number of awards issued. (2) The aggregate grant-date fair value of TSUs issued for the three months ended March 31, 2022 was $3.0 million based on a grant date market price at $3.64 per share. Restricted Stock Units with Market and Service Vesting Conditions The restricted stock units with market and service vesting conditions (“PSUs”) are accounted for as equity-classified awards. The grant-date fair value is recognized as compensation cost on a graded-vesting basis. As such, the Company recognizes compensation cost over the requisite service period for each separately vesting tranche of the award as though the award were, in substance, multiple awards. The Company accounts for forfeitures as they occur. Compensation costs are recorded as general and administrative expense. The unrecognized cost related to the PSUs was less than $0.1 million at March 31, 2022. The Company expects to recognize the unrecognized compensation cost for these awards over a weighted-average period of approximately 1.0 years. The PSUs will vest based on the satisfaction of service and market vesting conditions, with market vesting based on the Company’s achievement of certain share price targets. The PSUs are subject to service-based vesting such that 50% of the PSUs service vest on the applicable market vesting date and an additional 25% of the PSUs service vest on each of the first and second In the event of a qualifying termination, subject to certain conditions, (i) all PSUs that have satisfied the market vesting conditions will fully service vest, upon such termination, and (ii) if the termination occurs between the second and third anniversaries of the grant date, then PSUs that have not market vested as of the termination will market vest to the extent that the share targets (in each case, reduced by $0.25) are achieved as of such termination. Subject to the foregoing, any unvested PSUs will be forfeited upon termination of employment. A Monte Carlo simulation was used in order to determine the fair value of these awards at the grant date. The following table summarizes information regarding the PSUs granted under the EIP for the period presented: Weighted- Average Grant- Number of Date Fair Value Units per Unit (1) PSUs outstanding at December 31, 2021 65,940 $ 2.87 Granted — $ — Forfeited (5,365) $ 2.11 Vested — $ — PSUs & outstanding at March 31, 2022 60,575 $ 2.94 (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. Restricted Stock Units with Market Vesting Conditions The restricted stock units with performance-based vesting conditions (“PRSUs”) are accounted for as equity-classified awards. The grant-date fair value is recognized as compensation cost on a graded-vesting basis. As such, the Company recognizes compensation cost over the requisite service period for each separately vesting tranche of the award as though the award were, in substance, multiple awards. The Company accounts for forfeitures as they occur. Compensation costs are recorded as general and administrative expense. The 2022 PRSUs were issued with a three year vesting period beginning on the grant date and ending on the third anniversary of the grant date. Vesting of PRSUs can range from zero to 200% of the target units granted based on the Company’s relative total shareholder return as compared to the total shareholder return of the Company’s performance peer group over the performance period. The fair value of each PRSU award was estimated on their grant dates using a Monte Carlo simulation. The unrecognized cost associated with the PRSUs was $1.3 million at March 31, 2022. The Company expects to recognize the unrecognized compensation cost for these awards over a weighted-average period of approximately 2.7 years. The 2021 PRSUs awards were issued collectively in separate tranches with individual performances periods beginning in January 2021, 2022, and 2023 respectively. For each of the 2021 PRSUs awards the performance period, will vest based on the percentage of the target PRSUs subject to the performance vesting condition, with 25% able to vest during the period January 1, 2021 through December 31, 2021; 25% able to vest during the period January 1, 2022 through December 31, 2022 and 50% able to vest during the period of January 1, 2023 through December 31, 2023. The ranges for the assumptions used in the Monte Carlo model for the PRSUs granted during 2022 are presented as follows: 2022 Expected volatility 120.8 % Dividend yield 0.00 % Risk-free interest rate 1.38 % The following table summarizes information regarding the PRSUs granted under the EIP for the period presented: Weighted- Average Grant- Number of Date Fair Value Units per Unit (1) PRSUs outstanding at December 31, 2021 196,377 $ 1.94 Granted (2) 189,904 $ 6.20 Forfeited — $ — Vested (49,095) $ 1.24 PRSUs outstanding at March 31, 2022 337,186 $ 4.44 (1) Determined by dividing the aggregate grant-date fair value of awards by the number of awards issued. (2) The aggregate grant-date fair value of PRSUs issued for the three months ended March 31, 2022 was $1.2 million based on a calculated fair value price at $6.20 per share. 2017 Non-Employee Directors Compensation Plan In June 2017, Legacy Amplify implemented the Legacy Amplify Non-Employee Directors Compensation Plan to attract and retain the services of experienced non-employee directors of Legacy Amplify or its subsidiaries. In connection with the closing of the merger, on August 6, 2019, the Company assumed the Legacy Amplify Non-Employee Directors Compensation Plan. As noted above, the Legacy Amplify Non-Employee Directors Compensation Plan was replaced by the EIP in May 2021. The restricted stock units with a service vesting condition (“Board RSUs”) are accounted for as equity-classified awards. The grant-date fair value is recognized as compensation cost on a straight-line basis over the requisite service period and forfeitures are accounted for as they occur. Compensation costs are recorded as general and administrative expense. The unrecognized cost associated with restricted stock unit awards was less than $0.1 million at March 31, 2022. The Company expects to recognize the unrecognized compensation cost for these awards over a weighted-average period of approximately 0.1 years. The remaining Board RSUs outstanding was 3,333 at March 31, 2022 with a weighted average grant date fair value per unit of $5.12. No awards granted, forfeited vested Compensation Expense The following table summarizes the amount of recognized compensation expense associated with the EIP, which are reflected in the accompanying Unaudited Condensed Consolidated Statements of Operations for the periods presented (in thousands): For the Three Months Ended March 31, 2022 2021 Equity classified awards TSUs 591 75 PSUs and PRSUs 53 23 Board RSUs 4 4 $ 648 $ 102 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Leases | Note 11. Leases For the quarter ended March 31, 2022, the Company’s leases qualify as operating leases and it did not have any existing or new leases qualifying as financing leases or variable leases. The Company has leases for office space and equipment in its corporate office and operating regions as well as warehouse space, vehicles, compressors and surface rentals related to its business operations. In addition, the Company has offshore Southern California pipeline right-of-way use agreements. Most of the Company’s leases, other than its corporate office lease, have an initial term and may be extended on a month-to-month basis after expiration of the initial term. Most of the Company’s leases can be terminated with 30-day The Company’s corporate office lease does not provide an implicit rate. To determine the present value of the lease payments, the Company uses its incremental borrowing rate based on the information available at the inception date. To determine the incremental borrowing rate, the Company applies a portfolio approach based on the applicable lease terms and the current economic environment. The Company uses a reasonable market interest rate for its office equipment and vehicle leases. For the three months ended March 31, 2022 and 2021, the Company recognized approximately $0.4 million and $0.6 million, respectively, of costs relating to the operating leases in the Unaudited Condensed Consolidated Statements of Operations. Supplemental cash flow information related to the Company’s lease liabilities is included in the table below: For the Three Months Ended March 31, 2022 2021 (In thousands) Non-cash amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 442 $ 106 The following table presents the Company’s right-of-use assets and lease liabilities for the period presented: March 31, December 31, 2022 2021 (In thousands) Right-of-use asset $ 3,158 $ 2,716 Lease liabilities: Current lease liability 756 777 Long-term lease liability 2,549 2,017 Total lease liability $ 3,305 $ 2,794 The following table reflects the Company’s maturity analysis of the minimum lease payment obligations under non-cancelable operating leases with a remaining term in excess of one year (in thousands): Office and Leased vehicles warehouse and office leases equipment Total Remaining 2022 $ 508 $ 187 $ 695 2023 678 240 918 2024 678 32 710 2025 678 — 678 2026 and thereafter 571 — 571 Total lease payments 3,113 459 3,572 Less: interest 252 15 267 Present value of lease liabilities $ 2,861 $ 444 $ 3,305 The weighted average remaining lease terms and discount rate for all of the Company’s operating leases for the period presented: March 31, 2022 2021 Weighted average remaining lease term (years): Office and warehouse space 4.01 0.47 Vehicles 0.26 0.77 Office equipment — 0.03 Weighted average discount rate: Office leases 3.05 % 2.75 % Vehicles 0.44 % 1.45 % Office equipment — % 0.14 % |
Supplemental Disclosures to the
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows | |
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows | Note 12. Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows Accrued Liabilities Current accrued liabilities consisted of the following at the dates indicated (in thousands): March 31, December 31, 2022 2021 Accrued liability - pipeline incident $ 27,731 $ 34,417 Accrued lease operating expense 9,327 9,271 Accrued general and administrative expense 3,047 4,555 Accrued production and ad valorem tax 5,315 3,277 Accrued commitment fee and other expense 4,157 2,882 Accrued capital expenditures 2,329 1,631 Asset retirement obligations 1,016 1,016 Operating lease liability 756 777 Other 218 — Accrued liabilities $ 53,896 $ 57,826 Accounts Receivable Accounts receivable consisted of the following at the dates indicated (in thousands): March 31, December 31, 2022 2021 Oil and natural gas receivables $ 39,949 $ 32,428 Insurance receivable - pipeline incident 47,778 55,765 Joint interest owners and other 5,850 5,409 Total accounts receivable 93,577 93,602 Less: allowance for doubtful accounts (1,645) (1,635) Total accounts receivable, net 91,932 91,967 Supplemental Cash Flows Supplemental cash flows for the periods presented (in thousands): For the Three Months Ended March 31, 2022 2021 Supplemental cash flows: Cash paid for interest, net of amounts capitalized $ 2,100 $ 2,265 Cash paid for reorganization items, net — 6 Noncash investing and financing activities: Increase in capital expenditures in payables and accrued liabilities 1,997 1,916 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions | |
Related Party Transactions | Note 13. Related Party Transactions Related Party Agreements There have been no transactions between the Company and any related person in which the related person had a direct or indirect material interest for the three months ended March 31, 2022 and 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies. | |
Commitments and Contingencies | Note 14. Commitments and Contingencies Litigation and Environmental As of March 31, 2022, the Company had no material contingent liabilities recorded in its Unaudited Condensed Consolidated Financial Statements associated with any litigation, pending or threatened. Although the Company is insured against various risks to the extent it believes it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to indemnify it against liabilities arising from future legal proceedings. At March 31, 2022 and December 31, 2021, the Company had no environmental reserves recorded in its Unaudited Condensed Consolidated Balance Sheet. Southern California Pipeline Incident The Company and certain of its subsidiaries are named defendants in a putative class action pending in the United States District Court for the Central District of California. The plaintiffs seek unspecified monetary damages and certain forms of injunctive relief. The Company is also participating in a related claims process organized under the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq. (“OPA 90”). Under OPA 90, a party alleged to be responsible for a discharge of oil is required to establish a claims process to pay for interim costs and damages as a result of the discharge. The OPA 90 claims process remains ongoing. Future litigation may be necessary, among other things, to defend the Company by determining the scope, enforceability, and validity of claims. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. Minimum Volume Commitment The Company is party to a gas purchase, gathering and processing contract in Oklahoma, which includes certain minimum NGL commitments. To the extent the Company does not deliver natural gas volumes in sufficient quantities to generate, when processed, the minimum levels of recovered NGLs, it would be required to reimburse the counterparty an amount equal to the sum of the monthly shortfall, if any, multiplied by a fee. The Company is not meeting the minimum volume required under this contractual provision. The commitment fee expense was approximately $0.4 million for each of the three months ended March 31, 2022 and 2021. The minimum volume commitment for Oklahoma ends on June 30, 2023. The Company is party to a gas purchase, gathering and processing contract in East Texas, which includes certain minimum gas commitments. The Company is not meeting the minimum volume required under this contractual provision. The commitment fee expense for the three months ended March 31, 2022 and 2021, was approximately $0.5 million and $0.7 million, respectively. The minimum volume commitment for East Texas ends on November 30, 2022. Sinking Fund Trust Agreement Beta Operating Company, LLC, a wholly owned subsidiary, assumed an obligation with a third party to make payments into a sinking fund in connection with its 2009 acquisition of the Company properties in federal waters offshore Southern California, the purpose of which is to provide funds adequate to decommission the portion of the San Pedro Bay Pipeline that lies within state waters and the surface facilities. Under the terms of the agreement, the operator of the properties is obligated to make monthly deposits into the sinking fund account in an amount equal to $0.25 per barrel of oil and other liquid hydrocarbon produced from the acquired working interest. Interest earned in the account stays in the account. The obligation to fund ceases when the aggregate value of the account reaches $4.3 million. As of March 31, 2022, the account balance included in restricted investments was approximately $4.3 million. Supplemental Bond for Decommissioning Liabilities Trust Agreement Beta Operating Company, LLC (“Beta”), a wholly owned subsidiary of the Company, has an obligation with the BOEM in connection with its 2009 acquisition of the Company’s properties in federal waters offshore Southern California. The Company supports this obligation with $161.3 million of A-rated surety bonds and $0.3 million of cash as of March 31, 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes | |
Income Taxes | Note 15. Income Taxes The Company had no income tax expense for the three months ended March 31, 2022 and 2021, respectively. The Company’s effective tax rate was 0% for the three months ended March 31, 2022 and 2021, respectively. The effective tax rates for the three months ended March 31, 2022 and 2021 are different from the statutory U.S. federal income tax rate primarily due to the Company’s recorded valuation allowances. |
Southern California Pipeline In
Southern California Pipeline Incident | 3 Months Ended |
Mar. 31, 2022 | |
Southern California Pipeline Incident | |
Southern California Pipeline Incident | Note 16. Southern California Pipeline Incident On October 2, 2021, contractors operating under the direction of Beta, a subsidiary of Amplify, observed an oil sheen on the water approximately four miles off the coast of Newport Beach, California (the “Incident”). Beta platform personnel were notified and promptly initiated the Company’s Oil Spill Response Plan, which was reviewed and approved by the Bureau of Safety and Environmental Enforcement’s Oil Spill Preparedness Division within the United States Department of the Interior, and which included the required notifications of specified regulatory agencies. On October 3, 2021, a Unified Command, consisting of the Company, the U.S. Coast Guard and California Department of Fish and Wildlife’s Office of Spill Prevention and Response, was established to respond to the Incident. On October 5, 2021, the Unified Command announced that reports from its contracted commercial divers and Remotely Operated Vehicle footage indicated that a 4,000-foot section of the Company’s pipeline had been displaced with a maximum lateral movement of approximately 105 feet and that the pipeline had a 13-inch split, running parallel to the pipe. On October 14, 2021, the U.S. Coast Guard announced that it had a high degree of confidence the size of the release was approximately 588 barrels of oil, which is below the previously reported maximum estimate of 3,134 barrels. On October 16, 2021, the U.S. Coast Guard announced that it had identified the Mediterranean Shipping Company (DANIT) as a “vessel of interest” and its owner Dordellas Finance Corporation and operator Mediterranean Shipping Company, S.A. as parties in interest in connection with an anchor-dragging incident, in January 2021 (the “Anchor Dragging Incident”), which occurred in close proximity to our pipeline, and that additional vessels of interest continued to be investigated. On November 19, 2021, the U.S. Coast Guard announced that it had identified the COSCO (Beijing) as another vessel involved in the Anchor Dragging Incident and named its owner Capetanissa Maritime Corporation of Liberia and its operator V.Ships Greece Ltd. as parties in interest. The cause, timing and details regarding the Incident remain under investigation. At the height of the Incident response, the Company deployed over 1,800 personnel working under the guidance and at the direction of the Unified Command to aid in cleanup operations. As of October 14, 2021, all beaches that had been closed following the Incident have reopened. On February 2, 2022, the Unified Command announced that response and monitoring efforts have officially concluded for the Incident, and Unified Command would stand down as of such date. Amplify is grateful to its Unified Command partners for their collaboration and professionalism over the course of the response. In response to the Incident, all operations have been suspended and the pipeline has been shut-in until the Company receives the required regulatory approvals to begin operations. On October 4, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS) issued a Corrective Action Order (CAO) pursuant to 49 U.S.C. § 60112, which makes clear that no restart of the affected pipeline may occur until PHMSA has approved a written restart plan. Additionally, the California Coastal Commission requested approval from the Office of Coastal Management for the National Oceanic and Atmospheric Association (NOAA) to conduct a Coastal Zone Management Act consistency review of the U.S. Army Corps of Engineers Nationwide Permit (NWP) 12 application for the proposed permanent repair permit; on April 7, 2022, NOAA denied that request. The Company is working expeditiously and cooperatively to comply with the requirements of the relevant agencies in order to gain such approvals and any other regulatory approvals that are necessary to permanently repair the pipeline and restart operations. As a result of the uncertainties related to the permitting and regulatory approval process, the Company can provide no assurances as to whether and when, if at all, operation will restart at the Beta field. At present, no operations are underway in the Beta field. On December 15, 2021, a federal grand jury in the Central District of California returned a federal criminal indictment against Amplify Energy Corp., Beta Operating Company, LLC, and San Pedro Bay Pipeline Company in connection with the Incident. The indictment alleges that the Company committed a misdemeanor violation of the federal Clean Water Act for negligently discharging oil into the contiguous zone of the United States. A trial is set for November 1, 2022. The United States Attorney’s Office for the Central District of California has stated that its investigation of the Incident and related matters is ongoing. State authorities are conducting parallel criminal investigations as well. We are continuing to cooperate with these federal and state investigations. The outcome of these investigations is uncertain, including whether they will result in additional criminal charges. The Company is currently subject to a number of ongoing investigations related to the Incident by certain federal and state agencies. To date, the U.S. Coast Guard, the U.S. Bureau of Ocean Energy Management, the U.S. Department of Justice, PHMSA, the U.S. Department of the Interior Bureau of Safety and Environmental Enforcement, the California Department of Justice, the Orange County District Attorney, the Los Angeles County District Attorney, and the California Department of Fish & Wildlife are conducting investigations or examinations of the Incident. On April 8, 2022, in light of the allegations raised in the December 15, 2021 federal indictment, the Company received a Show Cause Notice from the U.S. Environmental Protection Agency (“EPA") asking the Company to provide information as to why it should not be suspended from participating in future Federal contracting and assisting activities pursuant to 2 C.F.R. § 180.700(a), (c) and 2 C.F.R. § 180.800(a)(4). On April 22, 2022, the Company responded to the Show Cause Notice and is working cooperatively with the EPA in connection with this matter. Other federal agencies may or have commenced investigations and proceedings, and may initiate enforcement actions seeking penalties and other relief under the Clean Water Act and other statutes. Amplify continues to comply with all regulatory requirements and investigations. The outcomes of these investigations and the nature of any remedies pursued will depend on the discretion of the relevant authorities and may result in regulatory or other enforcement actions, as well as civil and criminal liability. The Company and certain of its subsidiaries have been named as defendants in approximately 14 putative class action lawsuits, which have been consolidated into a single consolidated action in the United States District Court for the Central District of California. In the consolidated action, Plaintiffs filed a consolidated class action complaint on January 28, 2022. The consolidated complaint asserted claims against the Company and MSC Mediterranean Shipping Company, Dordellas Finance Corp., Costamare Shipping Co. S.A., and Capetanissa Maritime Corporation of Liberia. In a third-party complaint filed on February 28, 2022, the Company also asserted claims against those entities, as well as against the Marine Exchange of Los Angeles-Long Beach Harbor, V Ships Greece Ltd, the MSC Danit rem Beijing rem Under the OPA 90, the Company’s pipeline was designated by the U.S. Coast Guard as the source of the oil discharge and therefore the Company is financially responsible for remediation and for certain costs and economic damages as provided for in OPA 90, as well as certain natural resource damages associated with the spill and certain costs determined by federal and state trustees engaged in a joint assessment of such natural resource damages. The Company is currently processing covered claims under OPA 90 as expeditiously as possible. In addition, the Natural Resource Damage Assessment remains ongoing and therefore the extent, timing and cost related to such assessment are difficult to project. While the Company anticipates insurance will reimburse it for expenses related to the Natural Resource Damage Assessment, any potentially uncovered expenses may be material and could impact the Company’s business and results of operations and could put pressure on its liquidity position going forward. The Company currently estimates that the total costs it has incurred or will incur with respect to the Incident related to (i) actual and projected response and remediation expenses incurred under the direction of the Unified Command and (ii) estimates for certain legal fees, to be approximately $100.0 million to $120.0 million. These estimates consider currently available facts and presently enacted laws and regulations. The Company has made assumptions regarding (i) the probable and estimable amounts expected to be settled with certain vendors for response and remediation expenses and (ii) the resolution of certain third-party claims, excluding claims with respect to losses, which are not probable and reasonably estimable, and (iii) future claims and lawsuits. The Company’s estimates do not include (i) the nature, extent and cost of future legal services that will be required in connection with all lawsuits, claims and other matters requiring legal or expert advice associated with the Incident, (ii) any lost revenue associated with the suspension of operations at Beta, (iii) any liabilities or costs that are not reasonably estimable at this time or that relate to contingencies where the Company currently regards the likelihood of loss as being only reasonably possible or remote and (iv) the costs associated with the permanent repair of the pipeline and the restart of the Beta operations. The Company believes it has accrued adequate amounts for all probable and reasonably estimable costs; however, this estimate is subject to uncertainties associated with the assumptions that it has made. For example, settlements with vendors for response and remediation expenses could turn out to be significantly higher or lower than the Company has estimated. Accordingly, as the Company’s assumptions and estimates may change in future periods based on future events and total costs may materially increase; therefore, the Company can provide no assurance that it will not have to accrue significant additional costs in future periods with respect to the Incident. In accordance with customary insurance practice, the Company maintains insurance policies, including loss of production income insurance, against many potential losses or liabilities arising from its operations and at costs that the Company believes to be economic. The Company regularly reviews its risk of loss and the cost and availability of insurance and revises its insurance accordingly. The Company’s insurance does not cover every potential risk associated with its operations and is subject to certain exclusions and deductibles. While the Company expects its insurance policies will cover a material portion of the total aggregate costs associated with the Incident, including but not limited to response and remediation expenses, defense costs and loss of revenue resulting from suspended operations, it can provide no assurance that its coverage will adequately protect it against liability from all potential consequences, damages and losses related to the Incident and such view and understanding is preliminary and subject to change. As of March 31, 2022, and inclusive of cost associated with the temporary repair of the pipeline, the Company has incurred total aggregate gross costs of $111.2 million, of which the Company has received or expects that it is probable that it will receive $109.0 million in insurance recoveries. The Company’s net charge of $0.6 million, which is classified as “Pipeline Incident Loss” in the Company’s Unaudited Condensed Consolidated Statements of Operations, reflects legal costs incurred during the three months ended March 31, 2022, that are not currently expected to be recovered under an insurance policy. The Company incurred the balance of the difference, or $1.6 million, in expense for the year ended December 31, 2021. Through March 31, 2022, the Company had collected $70.4 million out of the approximately $109.0 million of costs that the Company expects are probable of recovery from insurance carriers, net of deductibles. Therefore as of March 31, 2022, the Company had a receivable of approximately $38.6 million for the portion of costs that the Company expects is probable of recovery from insurance, net of deductibles and amounts collected during 2022. Additionally, during the three months ended March 31, 2022, the Company recognized $17.5 million related to approved LOPI insurance proceeds, which is classified as “Other Revenues” in the Company’s Unaudited Condensed Consolidated Statements of Operations. As of March 31, 2022, the Company has recorded a receivable of $8.9 million related to approved but unpaid LOPI claims. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies | |
General | General Amplify Energy Corp. (“Amplify Energy,” “it” or the “Company”) is a publicly traded Delaware corporation whose common stock is listed on the NYSE under the symbol “AMPY.” The Company operates in one reportable segment engaged in the acquisition, development, exploitation and production of oil and natural gas properties. The Company’s management evaluates performance based on one reportable business segment as the economic environments are not different within the operation of its oil and natural gas properties. The Company’s assets consist primarily of producing oil and natural gas properties and are located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas / North Louisiana and the Eagle Ford. Most of the Company’s oil and natural gas properties are located in large, mature oil and natural gas reservoirs. The Company’s properties consist primarily of operated and non-operated working interests in producing and undeveloped leasehold acreage and working interests in identified producing wells. |
Basis of Presentation | Basis of Presentation The Company’s Unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and guidelines of the SEC. The results reported in these Unaudited Condensed Consolidated Financial Statements should not necessarily be taken as indicative of results that may be expected for the entire year. In the Company’s opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments of a normal recurring nature necessary for fair presentation. Although the Company believes the disclosures in these financial statements are adequate, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. Material intercompany transactions and balances have been eliminated in preparation of the Company’s consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of the accompanying Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include, but are not limited to, oil and natural gas reserves; depreciation, depletion and amortization of proved oil and natural gas properties; future cash flows from oil and natural gas properties; impairment of long-lived assets; fair value of derivatives; fair value of equity compensation; fair values of assets acquired and liabilities assumed in business combinations and asset retirement obligations. |
Market Conditions and COVID-19 | Market Conditions and COVID-19 Since the start of the COVID-19 pandemic, governments have tried to slow the spread of the virus by imposing social distancing guidelines, travel restrictions and stay-at-home orders, among other actions, which caused a significant decrease in activity in the global economy and the demand for oil and to a lesser extent natural gas and NGLs. As vaccines have become widely available, social distancing guidelines, travel restrictions and stay-at-home orders have eased, activity in the global economy has increased and demand for oil, natural gas and NGLs and related commodity pricing, has improved. Additionally, oil, natural gas and NGLs prices increased in the first quarter of 2022 when compared to the same period of 2021 and, as a result, we experienced a significant increase in revenues. As we continue to monitor the impact of the actions of the Organization of the Petroleum Exporting Countries and other large producing nations, the Russia-Ukraine conflict, global inventories of oil and gas and the uncertainty associated with recovering oil demand, future monetary policy and governmental policies aimed at transitioning towards lower carbon energy, we expect prices for some or all of the commodities we produce to remain volatile. Other factors such as the duration of the COVID-19 pandemic and the speed and effectiveness of vaccine distributions or other medical advances to combat the virus may impact the recovery of world economic growth and the demand for oil, natural gas and NGLs. |
New Accounting Pronouncements | New Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue | |
Summary of Revenues Disaggregated | The Company has identified three material revenue streams in its business: oil, natural gas and NGLs. The following table presents the Company’s revenues disaggregated by revenue stream. For the Three Months Ended March 31, 2022 2021 Revenues Oil $ 52,374 $ 49,695 NGLs 13,481 7,670 Natural gas 28,017 14,966 Oil and natural gas sales $ 93,872 $ 72,331 |
Fair Value Measurements of Fi_2
Fair Value Measurements of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements of Financial Instruments | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the gross derivative assets and liabilities that are measured at fair value on a recurring basis at March 31, 2022 and December 31, 2021 for each of the fair value hierarchy levels: Fair Value Measurements at March 31, 2022 Significant Quoted Prices in Significant Other Unobservable Active Market Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Fair Value (In thousands) Assets: Commodity derivatives $ — $ 11,819 $ — $ 11,819 Interest rate derivatives — 234 — 234 Total assets $ — $ 12,053 $ — $ 12,053 Liabilities: Commodity derivatives $ — $ 136,465 $ — $ 136,465 Interest rate derivatives — 87 — 87 Total liabilities $ — $ 136,552 $ — $ 136,552 Fair Value Measurements at December 31, 2021 Significant Quoted Prices in Significant Other Unobservable Active Market Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Fair Value (In thousands) Assets: Commodity derivatives $ — $ 7,967 $ — $ 7,967 Interest rate derivatives — — — — Total assets $ — $ 7,967 $ — $ 7,967 Liabilities: Commodity derivatives $ — $ 70,152 $ — $ 70,152 Interest rate derivatives — 623 — 623 Total liabilities $ — $ 70,775 $ — $ 70,775 |
Risk Management and Derivativ_2
Risk Management and Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Risk Management and Derivative Instruments | |
Open Commodity Positions | At March 31, 2022, the Company had the following open commodity positions: 2022 2023 Natural Gas Derivative Contracts: Fixed price swap contracts: Average monthly volume (MMBtu) 695,000 — Weighted-average fixed price $ 2.56 $ — Collar contracts: Two-way collars Average monthly volume (MMBtu) 775,000 690,000 Weighted-average floor price $ 2.56 $ 2.92 Weighted-average ceiling price $ 3.44 $ 3.84 Crude Oil Derivative Contracts: Fixed price swap contracts: Average monthly volume (Bbls) 61,667 55,000 Weighted-average fixed price $ 49.17 $ 57.30 Collar contracts: Two-way collars Average monthly volume (Bbls) 20,000 — Weighted-average floor price $ 58.75 $ — Weighted-average ceiling price $ 68.31 $ — Three-way collars Average monthly volume (Bbls) 89,000 30,000 Weighted-average ceiling price $ 55.55 $ 67.15 Weighted-average floor price $ 42.92 $ 55.00 Weighted-average sub-floor price $ 32.58 $ 40.00 |
Interest Rate Swap Open Positions | At March 31, 2022, the Company had the following interest rate swap open positions: Remaining 2022 Average Monthly Notional (in thousands) $ 75,000 Weighted-average fixed rate 1.281 % Floating rate 1 Month LIBOR |
Gross Fair Value of Derivative Instruments by Appropriate Balance Sheet | The following table summarizes both: (i) the gross fair value of derivative instruments by the appropriate balance sheet classification even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the balance sheet and (ii) the net recorded fair value as reflected on the balance sheet at March 31, 2022 and December 31, 2021. There was no cash collateral received or pledged associated with the Company’s derivative instruments since most of its counterparties, or certain of its affiliates, to its derivative contracts are lenders under its Revolving Credit Facility. Asset Liability Asset Liability Derivatives Derivatives Derivatives Derivatives March 31, March 31, December 31, December 31, Type Balance Sheet Location 2022 2022 2021 2021 (In thousands) Commodity contracts Short-term derivative instruments $ 9,470 $ 113,270 $ 4,804 $ 57,325 Interest rate swaps Short-term derivative instruments 234 87 — 623 Gross fair value 9,704 113,357 4,804 57,948 Netting arrangements (9,470) (9,470) (4,804) (4,804) Net recorded fair value Short-term derivative instruments $ 234 $ 103,887 $ — $ 53,144 Commodity contracts Long-term derivative instruments $ 2,349 $ 23,195 $ 3,163 $ 12,827 Interest rate swaps Long-term derivative instruments — — — — Gross fair value 2,349 23,195 3,163 12,827 Netting arrangements (2,349) (2,349) (3,163) (3,163) Net recorded fair value Long-term derivative instruments $ — $ 20,846 $ — $ 9,664 |
Unrealized and Realized Gains and Losses Related to Derivative Instruments | The following table details the gains and losses related to derivative instruments for the periods indicated (in thousands): For the Three Months Ended Statements of March 31, Operations Location 2022 2021 Commodity derivative contracts Loss on commodity derivatives $ 93,404 $ 34,588 Gain on interest rate derivatives Interest expense, net (557) (62) |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Asset Retirement Obligations | |
Summary of Changes in Asset Retirement Obligations | The Company’s asset retirement obligations primarily relate to the Company’s portion of future plugging and abandonment costs for wells and related facilities. The following table presents the changes in the asset retirement obligations for the three months ended March 31, 2022 (in thousands): Asset retirement obligations at beginning of period $ 103,414 Liabilities added from acquisition or drilling — Liabilities settled — Liabilities removed upon sale of wells — Accretion expense 1,720 Revision of estimates — Asset retirement obligation at end of period 105,134 Less: Current portion 1,016 Asset retirement obligations - long-term portion $ 104,118 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Long-Term Debt | |
Consolidated Debt Obligations | The following table presents the Company’s consolidated debt obligations at the dates indicated: March 31, December 31, 2022 2021 (In thousands) Revolving Credit Facility (1) $ 225,000 $ 230,000 Total long-term debt $ 225,000 $ 230,000 (1) The carrying amount of the Company’s Revolving Credit Facility approximates fair value because the interest rates are variable and reflective of market rates. |
Summary of Weighted-Average Interest Rates Paid on Variable-Rate Debt Obligations | The following table presents the weighted-average interest rates paid, excluding commitment fees, on the Company’s consolidated variable-rate debt obligations for the periods presented: For the Three Months Ended March 31, 2022 2021 Revolving Credit Facility 3.79 % 3.67 % |
Equity (Deficit) (Tables)
Equity (Deficit) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity (Deficit) | |
Summary of Changes in Common Stock Issued | The following is a summary of the changes in the Company’s common stock issued for the three months ended March 31, 2022: Common Stock Balance, December 31, 2021 38,024,142 Issuance of common stock — Restricted stock units vested 326,440 Shares withheld for taxes (1) (90,400) Balance, March 31, 2022 38,260,182 (1) Represents the net settlement on vesting of restricted stock necessary to satisfy the minimum statutory tax withholding requirements. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings per Share | |
Calculation of Earnings (Loss) per Share | The following sets forth the calculation of earnings (loss) per share, or EPS, for the periods indicated (in thousands, except per share amounts): For the Three Months Ended March 31, 2022 2021 Net loss $ (48,614) $ (19,328) Less: Net income allocated to participating restricted stockholders — — Basic and diluted earnings available to common stockholders $ (48,614) $ (19,328) Common shares: Common shares outstanding — basic 38,181 37,829 Dilutive effect of potential common shares — — Common shares outstanding — diluted 38,181 37,829 Net loss per share: Basic $ (1.27) $ (0.51) Diluted $ (1.27) $ (0.51) Antidilutive warrants (1) 2,174 2,174 (1) Amount represents warrants to purchase common stock that are excluded from the diluted net earnings per share calculations because of their antidilutive effect . |
Long-Term Incentive Plans (Tabl
Long-Term Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Amount of Compensation Expense Recognized | The following table summarizes the amount of recognized compensation expense associated with the EIP, which are reflected in the accompanying Unaudited Condensed Consolidated Statements of Operations for the periods presented (in thousands): For the Three Months Ended March 31, 2022 2021 Equity classified awards TSUs 591 75 PSUs and PRSUs 53 23 Board RSUs 4 4 $ 648 $ 102 |
TSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Information Regarding Restricted Stock Unit Awards | The following table summarizes information regarding the TSUs granted under the EIP for the period presented: Weighted- Average Grant- Number of Date Fair Value Units per Unit (1) TSUs outstanding at December 31, 2021 1,074,420 $ 3.66 Granted (2) 834,374 $ 3.64 Forfeited (18,523) $ 3.52 Vested (277,345) $ 3.60 TSUs outstanding at March 31, 2022 1,612,926 $ 3.66 (1) Determined by dividing the aggregate grant-date fair value of awards by the number of awards issued. (2) The aggregate grant-date fair value of TSUs issued for the three months ended March 31, 2022 was $3.0 million based on a grant date market price at $3.64 per share. |
PSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Information Regarding Restricted Stock Unit Awards | The following table summarizes information regarding the PSUs granted under the EIP for the period presented: Weighted- Average Grant- Number of Date Fair Value Units per Unit (1) PSUs outstanding at December 31, 2021 65,940 $ 2.87 Granted — $ — Forfeited (5,365) $ 2.11 Vested — $ — PSUs & outstanding at March 31, 2022 60,575 $ 2.94 (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. |
PRSU [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Information Regarding Restricted Stock Unit Awards | The following table summarizes information regarding the PRSUs granted under the EIP for the period presented: Weighted- Average Grant- Number of Date Fair Value Units per Unit (1) PRSUs outstanding at December 31, 2021 196,377 $ 1.94 Granted (2) 189,904 $ 6.20 Forfeited — $ — Vested (49,095) $ 1.24 PRSUs outstanding at March 31, 2022 337,186 $ 4.44 (1) Determined by dividing the aggregate grant-date fair value of awards by the number of awards issued. (2) The aggregate grant-date fair value of PRSUs issued for the three months ended March 31, 2022 was $1.2 million based on a calculated fair value price at $6.20 per share. |
Ranges for the Assumptions Used in Monte Carlo Model for PRSUs Granted | The ranges for the assumptions used in the Monte Carlo model for the PRSUs granted during 2022 are presented as follows: 2022 Expected volatility 120.8 % Dividend yield 0.00 % Risk-free interest rate 1.38 % |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Schedule of Supplemental Cash Flow Information Related to Lease Liabilities | Supplemental cash flow information related to the Company’s lease liabilities is included in the table below: For the Three Months Ended March 31, 2022 2021 (In thousands) Non-cash amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 442 $ 106 |
Schedule of Right-of-Use Assets and Lease Liabilities | The following table presents the Company’s right-of-use assets and lease liabilities for the period presented: March 31, December 31, 2022 2021 (In thousands) Right-of-use asset $ 3,158 $ 2,716 Lease liabilities: Current lease liability 756 777 Long-term lease liability 2,549 2,017 Total lease liability $ 3,305 $ 2,794 |
Schedule of Maturity Analysis of Minimum Lease Payment Obligation Under Non-cancellable Operating Leases | The following table reflects the Company’s maturity analysis of the minimum lease payment obligations under non-cancelable operating leases with a remaining term in excess of one year (in thousands): Office and Leased vehicles warehouse and office leases equipment Total Remaining 2022 $ 508 $ 187 $ 695 2023 678 240 918 2024 678 32 710 2025 678 — 678 2026 and thereafter 571 — 571 Total lease payments 3,113 459 3,572 Less: interest 252 15 267 Present value of lease liabilities $ 2,861 $ 444 $ 3,305 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rate of Operating Leases | The weighted average remaining lease terms and discount rate for all of the Company’s operating leases for the period presented: March 31, 2022 2021 Weighted average remaining lease term (years): Office and warehouse space 4.01 0.47 Vehicles 0.26 0.77 Office equipment — 0.03 Weighted average discount rate: Office leases 3.05 % 2.75 % Vehicles 0.44 % 1.45 % Office equipment — % 0.14 % |
Supplemental Disclosures to t_2
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows | |
Summary of Current Accrued Liabilities | Current accrued liabilities consisted of the following at the dates indicated (in thousands): March 31, December 31, 2022 2021 Accrued liability - pipeline incident $ 27,731 $ 34,417 Accrued lease operating expense 9,327 9,271 Accrued general and administrative expense 3,047 4,555 Accrued production and ad valorem tax 5,315 3,277 Accrued commitment fee and other expense 4,157 2,882 Accrued capital expenditures 2,329 1,631 Asset retirement obligations 1,016 1,016 Operating lease liability 756 777 Other 218 — Accrued liabilities $ 53,896 $ 57,826 |
Summary of accounts receivable | Accounts receivable consisted of the following at the dates indicated (in thousands): March 31, December 31, 2022 2021 Oil and natural gas receivables $ 39,949 $ 32,428 Insurance receivable - pipeline incident 47,778 55,765 Joint interest owners and other 5,850 5,409 Total accounts receivable 93,577 93,602 Less: allowance for doubtful accounts (1,645) (1,635) Total accounts receivable, net 91,932 91,967 |
Summary of Supplemental Cash Flows | Supplemental cash flows for the periods presented (in thousands): For the Three Months Ended March 31, 2022 2021 Supplemental cash flows: Cash paid for interest, net of amounts capitalized $ 2,100 $ 2,265 Cash paid for reorganization items, net — 6 Noncash investing and financing activities: Increase in capital expenditures in payables and accrued liabilities 1,997 1,916 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2022segment | |
Summary of Significant Accounting Policies | |
Number of reportable business segments | 1 |
Revenue - Summary of Revenues D
Revenue - Summary of Revenues Disaggregated (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total revenues | $ 111,433 | $ 72,469 |
Oil and Natural Gas Sales [Member] | ||
Revenues: | ||
Total revenues | 93,872 | 72,331 |
Oil [Member] | ||
Revenues: | ||
Total revenues | 52,374 | 49,695 |
NGLs [Member] | ||
Revenues: | ||
Total revenues | 13,481 | 7,670 |
Natural Gas [Member] | ||
Revenues: | ||
Total revenues | $ 28,017 | $ 14,966 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)item | Dec. 31, 2021USD ($) | |
Revenue | ||
Number of revenue streams | item | 3 | |
Accounts receivable attributable to revenue from contracts with customers | $ | $ 39.9 | $ 32.4 |
Fair Value Measurements of Fi_3
Fair Value Measurements of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | $ 12,053 | $ 7,967 |
Total liabilities | 136,552 | 70,775 |
Quoted Prices in Active Market (Level 1) [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 12,053 | 7,967 |
Total liabilities | 136,552 | 70,775 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Commodity derivatives [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 11,819 | 7,967 |
Total liabilities | 136,465 | 70,152 |
Commodity derivatives [Member] | Quoted Prices in Active Market (Level 1) [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Commodity derivatives [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 11,819 | 7,967 |
Total liabilities | 136,465 | 70,152 |
Commodity derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Interest rate derivatives [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 234 | 0 |
Total liabilities | 87 | 623 |
Interest rate derivatives [Member] | Quoted Prices in Active Market (Level 1) [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Interest rate derivatives [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 234 | 0 |
Total liabilities | 87 | 623 |
Interest rate derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Value Measurements of Fi_4
Fair Value Measurements of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Proved Developed and Producing Oil and Gas Properties [Member] | ||
Assets And Liabilities Carrying Value And Fair Value [Line Items] | ||
Impairment expense | $ 0 | $ 0 |
Risk Management and Derivativ_3
Risk Management and Derivative Instruments - Open Commodity Positions (Detail) | 3 Months Ended |
Mar. 31, 2022MMBTU$ / bbl$ / MMBTUbbl | |
Natural Gas Derivative Contracts Fixed Price Swap 2022 [Member] | |
Derivative [Line Items] | |
Average monthly volume (MMBtu) | MMBTU | 695,000 |
Weighted-average fixed price | $ / MMBTU | 2.56 |
Natural Gas Derivative Two Way Collars Contracts 2022 [Member] | |
Derivative [Line Items] | |
Average monthly volume (MMBtu) | MMBTU | 775,000 |
Weighted-average floor price | 2.56 |
Weighted-average ceiling price | 3.44 |
Crude Oil Derivative Contracts Fixed Price Swap 2022 [Member] | |
Derivative [Line Items] | |
Average monthly volume (Bbls) | bbl | 61,667 |
Weighted-average fixed price | 49.17 |
Crude Oil Derivative Two Way Collars Contracts 2022 [Member] | |
Derivative [Line Items] | |
Average monthly volume (Bbls) | bbl | 20,000 |
Weighted-average floor price | 58.75 |
Weighted-average ceiling price | 68.31 |
Crude Oil Derivative Three Way Collars Contracts 2022 [Member] | |
Derivative [Line Items] | |
Average monthly volume (Bbls) | bbl | 89,000 |
Weighted-average floor price | 42.92 |
Weighted-average ceiling price | 55.55 |
Weighted-average sub-floor price | 32.58 |
Natural Gas Derivative Contracts Fixed Price Swap 2023 [Member] | |
Derivative [Line Items] | |
Average monthly volume (MMBtu) | MMBTU | 0 |
Weighted-average fixed price | $ / MMBTU | 0 |
Natural Gas Derivative Two Way Collars Contracts 2023 [Member] | |
Derivative [Line Items] | |
Average monthly volume (MMBtu) | MMBTU | 690,000 |
Weighted-average floor price | 2.92 |
Weighted-average ceiling price | 3.84 |
Crude Oil Derivative Contracts Fixed Price Swap 2023 [Member] | |
Derivative [Line Items] | |
Average monthly volume (Bbls) | bbl | 55,000 |
Weighted-average fixed price | 57.30 |
Crude Oil Derivative Two Way Collars Contracts 2023 [Member] | |
Derivative [Line Items] | |
Average monthly volume (Bbls) | bbl | 0 |
Weighted-average floor price | 0 |
Weighted-average ceiling price | 0 |
Crude Oil Derivative Three Way Collars Contracts 2023 [Member] | |
Derivative [Line Items] | |
Average monthly volume (Bbls) | bbl | 30,000 |
Weighted-average floor price | 55 |
Weighted-average ceiling price | 67.15 |
Weighted-average sub-floor price | 40 |
Risk Management and Derivativ_4
Risk Management and Derivative Instruments - Interest Rate Swap Open Positions (Detail) - Interest Rate Swap Open Position Remaining 2021 [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Derivative [Line Items] | |
Average Monthly Notional (in thousands) | $ 75,000 |
Weighted-average fixed rate | 1.281% |
Floating rate | 1 Month LIBOR |
Risk Management and Derivativ_5
Risk Management and Derivative Instruments - Gross Fair Value of Derivative Instruments by Appropriate Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Net recorded fair value | $ 234 | |
Liability Derivatives, Net recorded fair value | 103,887 | $ 53,144 |
Liability Derivatives, Net recorded fair value | 20,846 | 9,664 |
Short-Term Derivative Instruments [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Total assets | 9,704 | 4,804 |
Asset Derivatives, Netting arrangements | (9,470) | (4,804) |
Asset Derivatives, Net recorded fair value | 234 | 0 |
Liability Derivatives, Gross fair value | 113,357 | 57,948 |
Liability Derivatives, Netting arrangements | (9,470) | (4,804) |
Liability Derivatives, Net recorded fair value | 103,887 | 53,144 |
Short-Term Derivative Instruments [Member] | Commodity derivatives [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Total assets | 9,470 | 4,804 |
Liability Derivatives, Gross fair value | 113,270 | 57,325 |
Short-Term Derivative Instruments [Member] | Interest Rate Swaps [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Total assets | 234 | 0 |
Liability Derivatives, Gross fair value | 87 | 623 |
Long-Term Derivative Instruments [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Total assets | 2,349 | 3,163 |
Asset Derivatives, Netting arrangements | (2,349) | (3,163) |
Asset Derivatives, Net recorded fair value | 0 | 0 |
Liability Derivatives, Gross fair value | 23,195 | 12,827 |
Liability Derivatives, Netting arrangements | (2,349) | (3,163) |
Liability Derivatives, Net recorded fair value | 20,846 | 9,664 |
Long-Term Derivative Instruments [Member] | Commodity derivatives [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Total assets | 2,349 | 3,163 |
Liability Derivatives, Gross fair value | 23,195 | 12,827 |
Long-Term Derivative Instruments [Member] | Interest Rate Swaps [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Total assets | 0 | 0 |
Liability Derivatives, Gross fair value | $ 0 | $ 0 |
Risk Management and Derivativ_6
Risk Management and Derivative Instruments - Unrealized and Realized Gains and Losses Related to Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments Gain Loss [Line Items] | ||
Loss on commodity derivative instruments | $ 93,404 | $ 34,588 |
Interest expense, net | (2,441) | (3,112) |
Commodity derivatives [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Loss on commodity derivative instruments | 93,404 | 34,588 |
Interest Rate Swaps [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Interest expense, net | $ (557) | $ (62) |
Asset Retirement Obligations -
Asset Retirement Obligations - Summary of Changes in Asset Retirement Obligations (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Asset Retirement Obligations | |||
Asset retirement obligations at beginning of period | $ 103,414 | ||
Accretion expense | 1,720 | $ 1,615 | |
Asset retirement obligation at end of period | 105,134 | ||
Less: Current Portion | 1,016 | $ 1,016 | |
Asset retirement obligations - long-term portion | $ 104,118 | $ 102,398 |
Long-Term Debt - Consolidated D
Long-Term Debt - Consolidated Debt Obligations (Detail) - USD ($) $ in Thousands | Apr. 24, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Line Of Credit Facility [Line Items] | ||||
Paycheck Protection Program loan | $ 5,500 | |||
Total long-term debt | $ 225,000 | $ 230,000 | ||
Revolving Credit Facility [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Aggregate principal outstanding | [1] | $ 225,000 | $ 230,000 | |
[1] | The carrying amount of the Company’s Revolving Credit Facility approximates fair value because the interest rates are variable and reflective of market rates. |
Long-Term Debt- Revolving Credi
Long-Term Debt- Revolving Credit Facility - Additional Information (Detail) - USD ($) $ in Millions | Apr. 30, 2022 | Nov. 30, 2021 | Mar. 31, 2022 |
Line Of Credit Facility [Line Items] | |||
Letters of credit outstanding | $ 0 | ||
Revolving Credit Facility [Member] | |||
Line Of Credit Facility [Line Items] | |||
Borrowing base | $ 230 | $ 245 | $ 235 |
Maturity date | Nov. 2, 2023 | ||
Amount of monthly reduction in borrowing base | $ 5 | $ 5 |
Long-Term Debt - Summary of Wei
Long-Term Debt - Summary of Weighted-Average Interest Rates Paid on Variable-Rate Debt Obligations (Detail) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revolving Credit Facility [Member] | ||
Line Of Credit Facility [Line Items] | ||
Revolving credit facility, weighted-average interest rates | 3.79% | 3.67% |
Long-Term Debt - Unamortized De
Long-Term Debt - Unamortized Deferred Financing Costs - Additional Information (Detail) $ in Millions | Mar. 31, 2022USD ($) |
Revolving Credit Facility [Member] | |
Line Of Credit Facility [Line Items] | |
Unamortized deferred financing costs | $ 0.8 |
Long-Term Debt - Paycheck Prote
Long-Term Debt - Paycheck Protection Program - Additional Information (Detail) | Apr. 24, 2020USD ($) |
Long-Term Debt | |
Loan amount received under paycheck protection plan | $ 5,500,000 |
Paycheck protection program loan of 2020, term | 2 years |
Paycheck protection program Loan of 2020, interest rate | 1.00% |
Paycheck protection program loan, principal or interest due next six months | $ 0 |
Equity (Deficit)- Additional In
Equity (Deficit)- Additional Information (Detail) - $ / shares | May 04, 2017 | Mar. 31, 2022 | Dec. 31, 2021 |
Equity And Distributions [Line Items] | |||
Common stock, shares authorized | 250,000,000 | 250,000,000 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Warrant [Member] | |||
Equity And Distributions [Line Items] | |||
Warrant issued during period | 2,173,913 | ||
Warrant life period | 5 years | ||
Warrant exercise price | $ 42.60 |
Equity (Deficit) - Summary of C
Equity (Deficit) - Summary of Changes in Number of Outstanding Common Stock (Detail) | 3 Months Ended | |
Mar. 31, 2022shares | ||
Summary Of Changes In Number Of Outstanding Units Or Shares [Line Items] | ||
Beginning balance | 38,024,142 | |
Ending balance | 38,260,182 | |
Common Stock [Member] | ||
Summary Of Changes In Number Of Outstanding Units Or Shares [Line Items] | ||
Beginning balance | 38,024,142 | |
Restricted stock units vested | 326,440 | |
Shares withheld for taxes | (90,400) | [1] |
Ending balance | 38,260,182 | |
[1] | Represents the net settlement on vesting of restricted stock necessary to satisfy the minimum statutory tax withholding requirements. |
Earnings per Share - Calculatio
Earnings per Share - Calculation of Earnings (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Earnings Per Share [Line Items] | |||
Net loss | $ (48,614) | $ (19,328) | |
Less: Net income allocated to participating restricted stockholders | 0 | 0 | |
Basic and diluted earnings available to common stockholders | $ (48,614) | $ (19,328) | |
Common shares: | |||
Common shares outstanding - basic | 38,181 | 37,829 | |
Dilutive effect of potential common shares | 0 | 0 | |
Common shares outstanding - diluted | 38,181 | 37,829 | |
Basic | $ (1.27) | $ (0.51) | |
Diluted | $ (1.27) | $ (0.51) | |
Warrants [Member] | |||
Common shares: | |||
Antidilutive stock options or warrants | [1] | 2,174 | 2,174 |
[1] | Amount represents warrants to purchase common stock that are excluded from the diluted net earnings per share calculations because of their antidilutive effect |
Long-Term Incentive Plans - Add
Long-Term Incentive Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | ||
EIP [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares Available for Future Grants Issuance | 1,564,669 | ||
TSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 4.9 | ||
Weighted-average period of unrecognized compensation cost | 2 years 4 months 24 days | ||
TSUs [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
RSUs outstanding | 1,612,926 | 1,074,420 | |
Weighted average grant date fair value per unit | [1] | $ 3.66 | $ 3.66 |
Granted, Number of Units | [2] | 834,374 | |
Forfeited, Number of Units | 18,523 | ||
Shares vested | 277,345 | ||
PSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average period of unrecognized compensation cost | 1 year | ||
Decrease in share targets | $ 0.25 | ||
RSUs outstanding | 60,575 | 65,940 | |
Weighted average grant date fair value per unit | [1] | $ 2.94 | $ 2.87 |
Granted, Number of Units | 0 | ||
Forfeited, Number of Units | 5,365 | ||
Shares vested | 0 | ||
PSUs [Member] | Share Based Compensation Award Tranche Three [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock units vesting percentage | 50.00% | ||
PSUs [Member] | First Anniversary Vesting [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock units vesting percentage | 25.00% | ||
PSUs [Member] | Second Anniversary Vesting [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock units vesting percentage | 25.00% | ||
PSUs [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 0.1 | ||
2017 Non-Employee Directors Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average period of unrecognized compensation cost | 1 month 6 days | ||
RSUs outstanding | 3,333 | ||
Weighted average grant date fair value per unit | $ 5.12 | ||
Granted, Number of Units | 0 | ||
Forfeited, Number of Units | 0 | ||
Shares vested | 0 | ||
2017 Non-Employee Directors Compensation Plan [Member] | Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 0.1 | ||
PRSU [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1.3 | ||
Weighted-average period of unrecognized compensation cost | 2 years 8 months 12 days | ||
Fair value estimation method | The fair value of each PRSU award was estimated on their grant dates using a Monte Carlo simulation. | ||
RSUs outstanding | 337,186 | 196,377 | |
Weighted average grant date fair value per unit | [1] | $ 4.44 | $ 1.94 |
Granted, Number of Units | [3] | 189,904 | |
Forfeited, Number of Units | 0 | ||
Shares vested | 49,095 | ||
PRSU [Member] | Share Based Compensation Award Tranche Three [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock units vesting percentage | 50.00% | ||
PRSU [Member] | First Anniversary Vesting [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock units vesting percentage | 25.00% | ||
PRSU [Member] | Second Anniversary Vesting [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock units vesting percentage | 25.00% | ||
PRSU [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of Potential Payout | 200.00% | ||
PRSU [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of Potential Payout | 0.00% | ||
[1] | Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. | ||
[2] | The aggregate grant-date fair value of TSUs issued for the three months ended March 31, 2022 was $3.0 million based on a grant date market price at $3.64 per share. | ||
[3] | The aggregate grant-date fair value of PRSUs issued for the three months ended March 31, 2022 was $1.2 million based on a calculated fair value price at $6.20 per share. |
Long-Term Incentive Plans - Sum
Long-Term Incentive Plans - Summary of Information Regarding Restricted Stock Unit Awards (Detail) | 3 Months Ended | |
Mar. 31, 2022$ / sharesshares | ||
PSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding, Number of Units, Beginning Balance | 65,940 | |
Granted, Number of Units | 0 | |
Forfeited, Number of Units | (5,365) | |
Vested, Number of Units | 0 | |
Outstanding, Number of Units, Ending Balance | 60,575 | |
Outstanding, Weighted-Average Grant Date Fair Value per unit, Beginning balance | $ / shares | $ 2.87 | [1] |
Granted, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 0 | [1] |
Forfeited, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 2.11 | [1] |
Vested, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 0 | [1] |
Outstanding, Weighted-Average Grant Date Fair Value per unit, Ending balance | $ / shares | $ 2.94 | [1] |
PRSU [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding, Number of Units, Beginning Balance | 196,377 | |
Granted, Number of Units | 189,904 | [2] |
Forfeited, Number of Units | 0 | |
Vested, Number of Units | (49,095) | |
Outstanding, Number of Units, Ending Balance | 337,186 | |
Outstanding, Weighted-Average Grant Date Fair Value per unit, Beginning balance | $ / shares | $ 1.94 | [1] |
Granted, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 6.20 | [1],[2] |
Forfeited, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 0 | [1] |
Vested, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 1.24 | [1] |
Outstanding, Weighted-Average Grant Date Fair Value per unit, Ending balance | $ / shares | $ 4.44 | [1] |
Restricted Stock Units (RSUs) [Member] | TSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding, Number of Units, Beginning Balance | 1,074,420 | |
Granted, Number of Units | 834,374 | [3] |
Forfeited, Number of Units | (18,523) | |
Vested, Number of Units | (277,345) | |
Outstanding, Number of Units, Ending Balance | 1,612,926 | |
Outstanding, Weighted-Average Grant Date Fair Value per unit, Beginning balance | $ / shares | $ 3.66 | [1] |
Granted, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 3.64 | [1],[3] |
Forfeited, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 3.52 | [1] |
Vested, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 3.60 | [1] |
Outstanding, Weighted-Average Grant Date Fair Value per unit, Ending balance | $ / shares | $ 3.66 | [1] |
Restricted Stock Units (RSUs) [Member] | 2017 Non-Employee Directors Compensation Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, Number of Units | 0 | |
Forfeited, Number of Units | 0 | |
Vested, Number of Units | 0 | |
Outstanding, Number of Units, Ending Balance | 3,333 | |
Outstanding, Weighted-Average Grant Date Fair Value per unit, Ending balance | $ / shares | $ 5.12 | |
[1] | Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. | |
[2] | The aggregate grant-date fair value of PRSUs issued for the three months ended March 31, 2022 was $1.2 million based on a calculated fair value price at $6.20 per share. | |
[3] | The aggregate grant-date fair value of TSUs issued for the three months ended March 31, 2022 was $3.0 million based on a grant date market price at $3.64 per share. |
Long-Term Incentive Plans - S_2
Long-Term Incentive Plans - Summary of Information Regarding Restricted Stock Unit Awards (Parenthetical) (Detail) $ / shares in Units, $ in Millions | Mar. 31, 2022USD ($)$ / shares |
TSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate grant date fair value of restricted stock units issued | $ | $ 3 |
TSUs [Member] | Minimum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Grant Date Market Price | $ / shares | $ 3.64 |
PRSU [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate grant date fair value of restricted stock units issued | $ | $ 1.2 |
PRSU [Member] | Maximum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Grant Date Market Price | $ / shares | $ 6.20 |
Long-Term Incentive Plans - Ass
Long-Term Incentive Plans - Assumptions Used in Monte Carlo Model (Detail) - PRSU [Member] | 3 Months Ended |
Mar. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected volatility | 120.80% |
Dividend yield | 0.00% |
Risk-free interest rate | 1.38% |
Long-Term Incentive Plans - S_3
Long-Term Incentive Plans - Summary of Amount of Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity based compensation expense (benefit) | $ 648 | $ 102 |
TSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity based compensation expense (benefit) | 591 | 75 |
PSUs and PRSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity based compensation expense (benefit) | 53 | 23 |
Restricted Stock Units (RSUs) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity based compensation expense (benefit) | $ 4 | $ 4 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases | ||
Lease, option to terminate | leases can be terminated with 30-day prior written notice. | |
Lease termination period with prior written notice | 30 days | |
Operating lease costs | $ 0.4 | $ 0.6 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | ||
Non-cash amounts included in the measurement of lease liabilities, operating cash flows from operating leases | $ 442 | $ 106 |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Right-of-use asset | $ 3,158 | $ 2,716 |
Current lease liability | 756 | 777 |
Long-term lease liability | 2,549 | 2,017 |
Total lease liability | $ 3,305 | $ 2,794 |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Minimum Lease Payment Obligation Under Non-cancellable Operating Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Lessee Lease Description [Line Items] | ||
Remaining 2022 | $ 695 | |
2023 | 918 | |
2024 | 710 | |
2025 | 678 | |
2026 and thereafter | 571 | |
Total lease payments | 3,572 | |
Less: interest | 267 | |
Present value of lease liabilities | 3,305 | $ 2,794 |
Office and Warehouse Space [Member] | ||
Lessee Lease Description [Line Items] | ||
Remaining 2022 | 508 | |
2023 | 678 | |
2024 | 678 | |
2025 | 678 | |
2026 and thereafter | 571 | |
Total lease payments | 3,113 | |
Less: interest | 252 | |
Present value of lease liabilities | 2,861 | |
Leased Vehicles and Office Equipment [Member] | ||
Lessee Lease Description [Line Items] | ||
Remaining 2022 | 187 | |
2023 | 240 | |
2024 | 32 | |
2025 | 0 | |
2026 and thereafter | 0 | |
Total lease payments | 459 | |
Less: interest | 15 | |
Present value of lease liabilities | $ 444 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Terms and Discount Rate of Operating Leases (Detail) | Mar. 31, 2022 | Mar. 31, 2021 |
Office and Warehouse Space [Member] | ||
Lessee Lease Description [Line Items] | ||
Weighted average remaining lease term | 4 years 3 days | 5 months 19 days |
Office Leases [Member] | ||
Lessee Lease Description [Line Items] | ||
Weighted average discount rate | 3.05% | 2.75% |
Vehicles [Member] | ||
Lessee Lease Description [Line Items] | ||
Weighted average remaining lease term | 3 months 3 days | 9 months 7 days |
Weighted average discount rate | 0.44% | 1.45% |
Office Equipment [Member] | ||
Lessee Lease Description [Line Items] | ||
Weighted average remaining lease term | 0 years | 10 days |
Weighted average discount rate | 0.14% |
Supplemental Disclosures to t_3
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows - Summary of Current Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows | ||
Accrued liability - pipeline incident | $ 27,731 | $ 34,417 |
Accrued lease operating expense | 9,327 | 9,271 |
Accrued general and administrative expense | 3,047 | 4,555 |
Accrued production and ad valorem tax | 5,315 | 3,277 |
Accrued commitment fee and other expense | 4,157 | 2,882 |
Accrued capital expenditures | 2,329 | 1,631 |
Asset retirement obligations | 1,016 | 1,016 |
Operating lease liability | $ 756 | $ 777 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Other | $ 218 | |
Accrued liabilities | $ 53,896 | $ 57,826 |
Supplemental Disclosures to t_4
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows | ||
Oil and natural gas receivables | $ 39,949 | $ 32,428 |
Insurance receivable - pipeline incident | 47,778 | 55,765 |
Joint interest owners and other | 5,850 | 5,409 |
Total accounts receivable | 93,577 | 93,602 |
Less: allowance for doubtful accounts | (1,645) | (1,635) |
Total accounts receivable, net | $ 91,932 | $ 91,967 |
Supplemental Disclosures to t_5
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows - Summary of Supplemental Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Supplemental cash flows: | ||
Cash paid for interest, net of amounts capitalized | $ 2,100 | $ 2,265 |
Cash paid for reorganization items, net | 0 | 6 |
Noncash investing and financing activities: | ||
Increase in capital expenditures in payables and accrued liabilities | $ 1,997 | $ 1,916 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transactions | ||
Significant transaction with related party | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2022USD ($)$ / bbl | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Commitments and Contingencies Additional Textual [Abstract] | |||
Remaining environmental accrued liability recorded | $ 0 | $ 0 | |
Beta's decommissioning obligations, full supported by surety bonds | 161,300,000 | ||
Beta's decommissioning obligations, cash | $ 300,000 | ||
Obligatory monthly deposit into sinking fund account per barrel of oil | $ / bbl | 0.25 | ||
Sinking fund account maximum value upon which obligation ceases | $ 4,300,000 | ||
Oklahoma [Member] | |||
Commitments and Contingencies Additional Textual [Abstract] | |||
Commitment fee expense | 400,000 | $ 400,000 | |
East Texas [Member] | |||
Commitments and Contingencies Additional Textual [Abstract] | |||
Commitment fee expense | 500,000 | $ 700,000 | |
Southern California Pipeline Incident and Oil Release | |||
Commitments and Contingencies Additional Textual [Abstract] | |||
Restricted Investment - decommissioning of offshore production facilities | $ 4,300,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Taxes | ||
Income tax expense | $ 0 | $ 0 |
Effective tax rate | 0.00% | 0.00% |
Southern California Pipeline _2
Southern California Pipeline Incident (Details) $ in Thousands | Oct. 02, 2021item | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 15, 2021item | Oct. 14, 2021bbl | Oct. 05, 2021ft²item |
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Pipeline incident loss | $ 580 | $ 0 | |||||
Amount receivable | 47,778 | $ 55,765 | |||||
Receivable | 91,932 | 91,967 | |||||
Southern California Pipeline Incident and Oil Release | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Number of foot section of pipeline displaced with lateral movement | item | 4,000 | ||||||
Maximum lateral movement of pipeline identified | ft² | 105 | ||||||
Number of inch split running parallel to pipe | item | 13 | ||||||
Volume of oil expected to be released | bbl | 588 | ||||||
Maximum volume of oil previously estimated | bbl | 3,134 | ||||||
Number of deployed contractors working in cleanup operations | item | 1,800 | ||||||
Estimated aggregate costs | 111,200 | ||||||
Amount received as reimbursement by insurance carriers | 70,400 | ||||||
Costs probable of recovery | 109,000 | ||||||
Pipeline incident loss | 600 | ||||||
Amount of loss contingency expenses | $ 1,600 | ||||||
Southern California Pipeline Incident and Oil Release | Accounts Receivable | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Amount receivable | 38,600 | ||||||
LOPI insurance payments recognized | 17,500 | ||||||
Receivable | 8,900 | ||||||
Southern California Pipeline Incident and Oil Release | Minimum | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Estimated aggregate costs | 100,000 | ||||||
Southern California Pipeline Incident and Oil Release | Maximum | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Estimated aggregate costs | $ 120,000 | ||||||
Southern California Pipeline Incident and Oil Release | Pending Litigation | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Number of putative class action suit filed | item | 14 | ||||||
Southern California Pipeline Incident and Oil Release | CALIFORNIA | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Number of miles off the coast of beach | item | 4 |