Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | Jones Energy, Inc. | ||
Entity Central Index Key | 1,573,166 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 272.4 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Class A common stock | |||
Entity Common Stock, Shares Outstanding | 30,550,907 | ||
Class B common stock | |||
Entity Common Stock, Shares Outstanding | 31,273,130 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash | $ 21,893 | $ 13,566 |
Restricted cash | 330 | 149 |
Accounts receivable, net | ||
Oil and gas sales | 19,292 | 51,482 |
Joint interest owners | 11,314 | 41,761 |
Other | 15,170 | 12,512 |
Commodity derivative assets | 124,207 | 121,519 |
Other current assets | 2,298 | 3,374 |
Total current assets | 194,504 | 244,363 |
Oil and gas properties, net, at cost under the successful efforts method | 1,635,766 | 1,638,860 |
Other property, plant and equipment, net | 3,873 | 4,048 |
Commodity derivative assets | 93,302 | 87,055 |
Other assets | 17,967 | 20,352 |
Deferred tax assets | 171 | |
Total assets | 1,945,412 | 1,994,849 |
Current liabilities | ||
Trade accounts payable | 7,467 | 136,337 |
Oil and gas sales payable | 32,408 | 70,469 |
Accrued liabilities | 27,341 | 19,401 |
Commodity derivative liabilities | 11 | |
Asset retirement obligations | 679 | 3,074 |
Total current liabilities | 67,906 | 229,281 |
Long-term debt | 847,912 | 860,000 |
Deferred revenue | 11,417 | 13,377 |
Commodity derivative liabilities | 28 | |
Asset retirement obligations | 20,301 | 10,536 |
Liability under tax receivable agreement | 38,052 | 803 |
Deferred tax liabilities | 22,972 | 27,474 |
Total liabilities | $ 1,008,560 | $ 1,141,499 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity | ||
Treasury stock, at cost; 22,602 shares at December 31, 2015 and December 31, 2014 | $ (358) | $ (358) |
Additional paid-in-capital | 363,723 | 178,763 |
Retained earnings (deficit) | 36,569 | 38,950 |
Stockholders' equity | 399,996 | 217,405 |
Non-controlling interest | 536,856 | 635,945 |
Total stockholders' equity | 936,852 | 853,350 |
Total liabilities and stockholders' equity | 1,945,412 | 1,994,849 |
Class A common stock | ||
Stockholders' equity | ||
Common stock | 31 | 13 |
Class B common stock | ||
Stockholders' equity | ||
Common stock | $ 31 | $ 37 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Treasury stock | ||
Treasury stock, shares | 22,602 | 22,602 |
Class A common stock | ||
Common stock | ||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares issued | 30,573,509 | 12,672,260 |
Common Stock, shares outstanding | 30,550,907 | 12,649,658 |
Class B common stock | ||
Common stock | ||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares issued | 31,273,130 | 36,719,499 |
Common Stock, shares outstanding | 31,273,130 | 36,719,499 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating revenues | |||
Oil and gas sales | $ 194,555 | $ 378,401 | $ 258,063 |
Other revenues | 2,844 | 2,196 | 1,106 |
Total operating revenues | 197,399 | 380,597 | 259,169 |
Operating costs and expenses | |||
Lease operating | 41,027 | 37,760 | 25,129 |
Production taxes | 12,130 | 22,556 | 15,517 |
Exploration | 6,551 | 3,453 | 16,125 |
Depletion, depreciation and amortization | 205,498 | 181,669 | 114,136 |
Accretion of ARO liability | 1,087 | 770 | 608 |
General and administrative | 33,388 | 25,763 | 31,902 |
Other operating | 4,188 | ||
Total operating expenses | 303,869 | 271,971 | 203,417 |
Operating income (loss) | (106,470) | 108,626 | 55,752 |
Other income (expense) | |||
Interest expense | (61,289) | (38,805) | (27,409) |
Net gain (loss) on commodity derivatives | 158,753 | 189,641 | (2,566) |
Other income (expense) | (2,852) | (7,624) | (3,443) |
Other income (expense), net | 94,612 | 143,212 | (33,418) |
Income (loss) before income tax | (11,858) | 251,838 | 22,334 |
Income tax provision (benefit) | |||
Current | 113 | 53 | 85 |
Deferred | (2,894) | 26,165 | (156) |
Total income tax provision (benefit) | (2,781) | 26,218 | (71) |
Net income (loss) | (9,077) | 225,620 | 22,405 |
Net income (loss) attributable to non-controlling interests | (6,696) | 184,484 | 24,591 |
Net income (loss) attributable to controlling interests | $ (2,381) | $ 41,136 | $ (2,186) |
Earnings (Loss) per share: | |||
Basic (in dollars per share) | $ (0.09) | $ 3.28 | $ (0.17) |
Diluted (in dollars per share) | $ (0.09) | $ 3.28 | $ (0.17) |
Weighted average shares outstanding: | |||
Basic | 26,816 | 12,526 | 12,500 |
Diluted | 26,816 | 12,535 | 12,500 |
Statement of Changes in Stockho
Statement of Changes in Stockholders' / Members' Equity - USD ($) shares in Thousands, $ in Thousands | Common StockClass A common stock | Common StockClass B common stock | Treasury StockClass A common stock | Members' Equity | Additional Paid-in-Capital | Retained (Deficit) Earnings | Non-controlling Interest | Total |
Balance at Dec. 31, 2012 | $ 428,400 | $ 428,400 | ||||||
Increase (Decrease) Stockholders' Equity | ||||||||
Sale of common stock | $ 13 | $ 37 | $ 172,431 | 172,481 | ||||
Sale of common stock (in shares) | 12,500 | 36,836 | ||||||
Reclassification of members' contributions | (464,037) | $ 464,037 | ||||||
Stock-compensation expense | 10,100 | 738 | 10,838 | |||||
Distribution to members | (10,000) | (10,000) | ||||||
Net income (loss) | $ 35,537 | $ (2,186) | (10,946) | 22,405 | ||||
Balance at Dec. 31, 2013 | $ 13 | $ 37 | 173,169 | (2,186) | 453,091 | 624,124 | ||
Balance (in shares) at Dec. 31, 2013 | 12,500 | 36,836 | ||||||
Increase (Decrease) Stockholders' Equity | ||||||||
Treasury Stock | $ (358) | (358) | ||||||
Treasury Stock (in shares) | (23) | 23 | ||||||
Exchange of Class B Shares for Class A Shares | 1,554 | (1,630) | (76) | |||||
Exchange of Class B shares for Class A shares (in shares) | 117 | (117) | ||||||
Stock-compensation expense | 4,040 | 4,040 | ||||||
Vested restricted shares (in shares) | 28 | |||||||
Net income (loss) | 41,136 | 184,484 | 225,620 | |||||
Balance at Dec. 31, 2014 | $ 13 | $ 37 | $ (358) | 178,763 | 38,950 | 635,945 | 853,350 | |
Balance (in shares) at Dec. 31, 2014 | 12,622 | 36,719 | 23 | |||||
Increase (Decrease) Stockholders' Equity | ||||||||
Sale of common stock | $ 12 | 123,189 | 123,201 | |||||
Sale of common stock (in shares) | 12,263 | |||||||
Exchange of Class B Shares for Class A Shares | $ 6 | $ (6) | 54,209 | (92,393) | (38,184) | |||
Exchange of Class B shares for Class A shares (in shares) | 5,446 | (5,446) | ||||||
Stock-compensation expense | 7,562 | 7,562 | ||||||
Stock-compensation expense (in shares) | 67 | |||||||
Vested restricted shares (in shares) | 153 | |||||||
Net income (loss) | (2,381) | (6,696) | (9,077) | |||||
Balance at Dec. 31, 2015 | $ 31 | $ 31 | $ (358) | $ 363,723 | $ 36,569 | $ 536,856 | $ 936,852 | |
Balance (in shares) at Dec. 31, 2015 | 30,551 | 31,273 | 23 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net income (loss) | $ (9,077) | $ 225,620 | $ 22,405 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Depletion, depreciation, and amortization | 205,498 | 181,669 | 114,136 |
Exploration expense | 5,250 | 2,952 | 14,415 |
Accretion of ARO liability | 1,087 | 770 | 608 |
Amortization of debt issuance costs | 6,043 | 6,878 | 2,677 |
Stock compensation expense | 7,562 | 4,040 | 10,838 |
Other non-cash compensation expense | 455 | 758 | 2,719 |
Amortization of deferred revenue | (1,960) | (1,154) | (469) |
(Gain) loss on commodity derivatives | (158,753) | (189,641) | 2,566 |
(Gain) loss on sales of assets | 3 | (297) | 78 |
Deferred income tax provision | (2,892) | 26,165 | (156) |
Other - net | (961) | 376 | 79 |
Changes in assets and liabilities | |||
Accounts receivable | 64,510 | (2,453) | (56,804) |
Other assets | (251) | (565) | 163 |
Accrued interest expense | 7,050 | 7,823 | 1,891 |
Accounts payable and accrued liabilities | (54,534) | 2,482 | 33,427 |
Net cash provided by operations | 69,030 | 265,423 | 148,573 |
Cash flows from investing activities | |||
Additions to oil and gas properties | (311,305) | (474,619) | (197,618) |
Acquisition of properties | (178,173) | ||
Net adjustments to purchase price of properties acquired | 15,709 | ||
Proceeds from sales of assets | 41 | 448 | 1,607 |
Acquisition of other property, plant and equipment | (1,101) | (1,683) | (1,634) |
Current period settlements of matured derivative contracts | 144,145 | (3,654) | 7,586 |
Change in restricted cash | (181) | (104) | (45) |
Net cash used in investing | (168,401) | (463,903) | (368,277) |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt | 85,000 | 170,000 | 220,000 |
Repayment under long-term debt | (335,000) | (468,000) | (172,000) |
Proceeds from senior notes | 236,475 | 500,000 | |
Payment of debt issuance costs | (1,556) | (13,416) | (683) |
Proceeds from sale of common stock | 122,779 | 172,481 | |
Purchase of treasury stock | (358) | ||
Net cash provided by financing | 107,698 | 188,226 | 219,798 |
Net increase (decrease) in cash | 8,327 | (10,254) | 94 |
Cash | |||
Beginning of period | 13,566 | 23,820 | 23,726 |
End of period | 21,893 | 13,566 | 23,820 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 52,796 | 29,560 | 25,414 |
Cash paid for income taxes | (155) | 155 | |
Change in accrued additions to oil and gas properties | (111,210) | 49,025 | 41,945 |
Current additions to ARO | $ 6,349 | $ 1,995 | $ 1,516 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Description of Business | |
Organization and Description of Business | 1. Organization and Description of Business Organization Jones Energy, Inc. (the "Company") was formed in March 2013 as a Delaware corporation to become a publicly-traded entity and the holding company of Jones Energy Holdings, LLC ("JEH"). As the sole managing member of JEH, the Company is responsible for all operational, management and administrative decisions relating to JEH's business and consolidates the financial results of JEH and its subsidiaries. JEH was formed as a Delaware limited liability company on December 16, 2009 through investments made by the Jones family and through private equity funds managed by Metalmark Capital and Wells Fargo Energy Capital (collectively, the "Pre-IPO owners"). JEH acts as a holding company of operating subsidiaries that own and operate assets that are used in the exploration, development, production and acquisition of oil and natural gas properties. The Company's certificate of incorporation authorizes two classes of common stock, Class A common stock and Class B common stock. The Class B common stock is held by the owners of JEH prior to the Company's initial public offering ("IPO") and can be exchanged (together with a corresponding number of units representing membership interests in JEH ("JEH Units")) for shares of Class A common stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications and other similar transactions. The Class B common stock has no economic rights but entitles its holders to one vote on all matters to be voted on by the Company's stockholders generally. As a result of the IPO and as of February 29, 2016, the Pre-IPO owners had 74.7% and 50.6%, respectively, of the total economic interest in JEH, but with no voting rights or management power over JEH, resulting in the Company reporting this ownership interest as a non-controlling interest. Prior to the IPO, JEH owned the controlling interest in the Company; hence all of the net income earned prior to the IPO date is reflected in the net income attributable to non-controlling interests on the Consolidated Statement of Operations for the year ended December 31, 2013. Description of Business The Company is engaged in the exploration, development, production and acquisition of oil and natural gas properties in the mid-continent United States. The Company's assets are located within the Anadarko and Arkoma basins of Texas and Oklahoma, and are owned by JEH and its operating subsidiaries. The Company is headquartered in Austin, Texas. Revision of Previously Issued Financial Statements During the first quarter of 2015, we identified an error in our previously issued Form 10-K for the year ended December 31, 2014 related to the over accrual for production taxes which would have been material to the first quarter of 2015 and could be material to projected 2015 annual results if recorded as an out of period adjustment in such period. Therefore we have revised our Balance Sheet and Consolidated Statement of Operations for the year and quarter ended December 31, 2014, as noted in the table below. This revision had no impact on our net cash provided by operations in our Consolidated Statement of Cash Flows for the twelve months ended December 31, 2014. We have determined that this error is not material to the consolidated financial statements of any prior period presented. In addition, we identified an error in our previously issued Form 10-K for the year ended December 31, 2014 related to the exchange of Class B shares for Class A shares. Therefore we revised our Consolidated Balance Sheet and Statement of Changes in Stockholders' Equity for the year ended December 31, 2014 as noted in the table below. This revision had no impact on Class A or Class B shares outstanding at December 31, 2014. We have determined that this error is not material to the consolidated financial statements of any prior period presented. Consolidated Balance Sheet: December 31, 2014 December 31, 2014 Production tax Exchange of Class B shares (in thousands of dollars) As Reported As Revised Accounts Receivable, Oil and gas sales $ $ — $ Deferred tax liabilities $ (1) $ — $ Additional paid in capital $ — $ $ Retained earnings $ $ — $ Non-controlling interest $ $ $ ) $ (1) Certain prior period amounts have been reclassified to conform to the current presentation. Consolidated Statements of Operations—for the twelve months ended: December 31, 2014 December 31, 2014 Production tax (in thousands except per share data) As Reported As Revised Production and ad valorem taxes $ (1) $ ) $ Income tax provision (benefit) $ $ $ Net income (loss) $ $ $ Net income (loss) attributable to non-controlling interests $ $ $ Net income (loss) attributable to controlling interests $ $ $ Earnings (Loss) per share: Basic $ $ $ Diluted $ $ $ (1) Certain prior period amounts have been reclassified to conform to the current presentation. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). All significant intercompany transactions and balances have been eliminated in consolidation. The financial statements reported for December 31, 2015 and 2014 and the results of the operations and the cash flows for each of the three years in the period ended December 31, 2014 include the Company and all of its subsidiaries. Certain prior period amounts have been reclassified to conform to the current presentation. Segment Information The Company operates in one industry segment, which is the exploration, development and production of oil and natural gas, and all of its operations are conducted in one geographic area of the United States. Use of Estimates In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Changes in estimates are recorded prospectively. Significant assumptions are required in the valuation of proved and unproved oil and natural gas reserves, which affect the Company's estimates of depletion expense, impairment, and the allocation of value in our business combinations. Significant assumptions are also required in the Company's estimates of the net gain or loss on commodity derivative assets and liabilities, fair value associated with business combinations, and asset retirement obligations ("ARO"). Cash Cash and cash equivalents include highly liquid investments with a maturity of three months or less. At times, the amount of cash on deposit in financial institutions exceeds federally insured limits. Management monitors the soundness of the financial institutions it does business with, and believes the Company's risk is not significant. Accounts Receivable Accounts receivable—Oil and gas sales consist of uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 to 60 days of production. Accounts receivable—Joint interest owners consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date. Accounts receivable—Other consists at December 31, 2015 and at December 31, 2014 of derivative positions not settled as of the balance sheet date and severance tax refunds due from state agencies. No interest is charged on past-due balances. The Company routinely assesses the recoverability of all material trade, joint interest and other receivables to determine their collectability, and reduces the carrying amounts by a valuation allowance that reflects management's best estimate of the amounts that may not be collected. As of December 31, 2015 and 2014, the Company did not have significant allowances for doubtful accounts. Concentration of Risk Substantially all of the Company's accounts receivable are related to the oil and gas industry. This concentration of entities may affect the Company's overall credit risk in that these entities may be affected similarly by changes in economic and other conditions, including declines in commodity prices. As of December 31, 2015, 68% of Accounts receivable—Oil and gas sales are due from four purchasers and 80% of Accounts receivable—Joint interest owners are due from five working interest owners. As of December 31, 2014, 70% of Accounts receivable—Oil and gas sales were due from five purchasers and 67% of Accounts receivable—Joint interest owners were due from five working interest owners. As of December 31, 2013, 79% of Accounts receivable—Oil and gas sales were due from eight purchasers and 77% of Accounts receivable—Joint interest owners were due from five working interest owners. If any or all of these significant counterparties were to fail to pay amounts due to the Company, the Company's financial position and results of operations could be materially and adversely affected. Dependence on Major Customers The Company maintains a portfolio of crude oil and natural gas marketing contracts with large, established refiners and oil and gas purchasers. During the year ended December 31, 2015, the largest purchasers were Valero Energy Corp. ("Valero"), ETC Field Services LLC, Plains Marketing LP ("Plains Marketing"), NGL Energy Partners LP, and Unimark LLC, which accounted for approximately 18%, 17%, 16%, 15% and 7% of consolidated oil and gas sales, respectively. During the year ended December 31, 2014, the largest purchasers were Valero Energy Corp. ("Valero"), NGL Energy Partners LP, PVR Midstream LLC ("PVR Midstream"), Plains Marketing LP ("Plains Marketing"), and Monarch Natural Gas LLC which accounted for approximately 22%, 12%, 12%, 10% and 10% of consolidated oil and gas sales, respectively. During the year ended December 31, 2013, the largest purchasers were PVR Midstream, Unimark LLC, Mercuria Energy Group Ltd. ("Mercuria"), Valero, and Plains Marketing, which accounted for approximately 15%, 13%, 13%, 13% and 6% of consolidated oil and gas sales, respectively. Management believes that there are alternative purchasers and that it may be necessary to establish relationships with such new purchasers. However, there can be no assurance that the Company can establish such relationships and that those relationships will result in an increased number of purchasers. Although the Company is exposed to a concentration of credit risk, management believes that all of the Company's purchasers are credit worthy. Dependence on Suppliers The Company's industry is cyclical, and from time to time, there can be an imbalance between the supply of and demand for drilling rigs, equipment, services, supplies and qualified personnel. During periods of oversupply, there can be financial pressure on suppliers. If the financial pressure leads to work interruptions or stoppages, the Company could be materially and adversely affected. Management believes that there are adequate alternative providers of drilling and completion services although it may become necessary to establish relationships with new contractors. However, there can be no assurance that the Company can establish such relationships and that those relationships will result in increased availability of drilling rigs or other services, or that they could be obtained on the same terms. Oil and Gas Properties The Company accounts for its oil and natural gas exploration and production activities under the successful efforts method of accounting. Costs to acquire mineral interests in oil and natural gas properties are capitalized. Costs to drill and equip development wells and the related asset retirement costs are capitalized. The costs to drill and equip exploratory wells are capitalized pending determination of whether the Company has discovered proved commercial reserves. If proved commercial reserves are not discovered, such drilling costs are charged to expense. In some circumstances, it may be uncertain whether proved commercial reserves have been found when drilling has been completed. Such exploratory well drilling costs may continue to be capitalized if the anticipated reserve quantity is sufficient to justify its completion as a producing well and sufficient progress in assessing the reserves and the economic and operating viability of the project is being made. The Company capitalizes interest on expenditures for significant exploration and development projects that last more than six months while activities are in progress to bring the assets to their intended use. On the sale or retirement of a proved field, the cost and related accumulated depletion, depreciation and amortization are eliminated from the field accounts, and the resultant gain or loss is recognized. Capitalized amounts attributable to proved oil and gas properties are depleted by the unit-of-production method over the life of proved reserves, using the unit conversion ratio of six thousand cubic feet of gas to one barrel of oil equivalent. Depletion of the costs of wells and related equipment and facilities, including capitalized asset retirement costs, net of salvage values, is computed using proved developed reserves. The reserve base used to calculate depreciation, depletion, and amortization for leasehold acquisition costs and the cost to acquire proved properties is the sum of proved developed reserves and proved undeveloped reserves. The Company reviews its proved oil and natural gas properties, including related wells and equipment, for impairment by comparing expected undiscounted future cash flows at a producing field level to the net capitalized cost of the asset. If the future undiscounted cash flows, based on the Company's estimate of future commodity prices, operating costs, and production, are lower than the net capitalized cost, the capitalized cost is reduced to fair value. Fair value is calculated by discounting the future cash flows at an appropriate risk- adjusted discount rate. Due to the significant assumptions associated with the inputs and calculations described, the fair value of oil and gas properties used in estimating impairment represents a nonrecurring Level 3 measurement. The Company evaluates its unproved properties for impairment on a property-by-property basis. The Company's unproved property consists of acquisition costs related to its undeveloped acreage. The Company reviews the unproved property for indicators of impairment based on the Company's current exploration plans with consideration given to results of any drilling and seismic activity during the period and known information regarding exploration and development activity by other companies on adjacent blocks. On the sale of an entire interest in an unproved property, gain or loss on the sale is recognized, taking into consideration the amount of any recorded impairment if the property had been assessed individually. If a partial interest in an unproved property is sold, the amount received is treated as a reduction of the cost of the interest retained. Other Property, Plant and Equipment Other property, plant and equipment is depreciated on a straight-line basis over the estimated useful lives of the property, plant and equipment, which range from three years to ten years. Oil and Gas Sales Payable Oil and gas sales payable represents amounts collected from purchasers for oil and gas sales, which are due to other revenue interest owners. Generally, the Company is required to remit amounts due under these liabilities within 60 days of receipt. Commodity Derivatives The Company records its commodity derivative instruments on the Consolidated Balance Sheet as either an asset or liability measured at its fair value. Changes in the derivative's fair value are recognized currently in earnings, unless specific hedge accounting criteria are met. During the years ended December 31, 2015, 2014 and 2013, the Company elected not to designate any of its commodity price risk management activities as cash flow or fair value hedges. The changes in the fair values of outstanding financial instruments are recognized as gains or losses in the period of change. Although the Company does not designate its commodity derivative instruments as cash-flow hedges, management uses those instruments to reduce the Company's exposure to fluctuations in commodity prices related to its natural gas and oil production. Net gains and losses, at fair value, are included on the Consolidated Balance Sheet as current or noncurrent assets or liabilities based on the anticipated timing of cash settlements under the related contracts. Changes in the fair value of commodity derivative contracts are recorded in earnings as they occur and are included in other income (expense) on the Consolidated Statement of Operations. See Note 7, "Fair Value Measurement," for disclosure about the fair values of commodity derivative instruments. Asset Retirement Obligations The Company's asset retirement obligations ("ARO") consist of future plugging and abandonment expenses on oil and natural gas properties. The Company estimates an ARO for each well in the period in which it is incurred based on estimated present value of plugging and abandonment costs, increased by an inflation factor to the estimated date that the well would be plugged. The resulting liability is recorded by increasing the carrying amount of the related long- lived asset. The liability is then accreted to its then-present value each period and the capitalized cost is depleted over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. The ARO is classified as current or noncurrent based on the expect timing of payments. Revenue Recognition Revenues from the sale of crude oil, natural gas, and natural gas liquids are valued at the estimated sales price and recognized when the product is delivered at a fixed or determinable price, title has transferred, collectability is reasonably assured and evidenced by a contract. The Company follows the "sales method" of accounting for its oil and natural gas revenue, so it recognizes revenue on all crude oil, natural gas, and natural gas liquids sold to purchasers. A receivable or liability is recognized only to the extent that the Company has an imbalance on a specific property greater than the expected remaining proved reserves. Any such imbalances were not significant as of December 31, 2015. Income Taxes Following its IPO on July 29, 2013, the Company began recording a federal and state income tax liability associated with its status as a corporation. No provision for federal income taxes was recorded prior to the IPO because the taxable income or loss was includable in the income tax returns of the individual partners and members. The Company is also subject to state income taxes. The State of Texas includes in its tax system a franchise tax applicable to the Company and an accrual for franchise taxes is included in the financial statements when appropriate. Income taxes are accounted for under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to be recovered or settled pursuant to the provisions of ASC 740—Income Taxes. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records a valuation allowance if it is deemed more likely than not that all or a portion of its deferred income tax assets will not be realized. In addition, income tax rules and regulations are subject to interpretation and the application of those rules and regulations require judgment by the Company and may be challenged by the taxation authorities. The Company follows a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. Only tax positions that meet the more likely than not recognition threshold are recognized. The Company's policy is to include any interest and penalties recorded on uncertain tax positions as a component of income tax expense. The Company's unrecognized tax benefits or related interest and penalties are immaterial. Comprehensive Income The Company has no elements of comprehensive income other than net income. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers," which creates a new topic in the ASC, topic 606, "Revenue from Contracts with Customers." This ASU sets forth a five-step model for determining when and how revenue is recognized. Under the model, an entity will be required to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Additional disclosures will be required to describe the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year. The amendments are now effective for interim and annual reporting periods beginning after December 15, 2017 and may be applied on either a full or modified retrospective basis. Early adoption is permitted. We are currently evaluating the effect that the adoption of Update 2014-09 and Update 2015-14 will have on our financial statements. In January 2015, the FASB issued ASU No. 2015- 01, Income Statement—Extraordinary and Unusual Items. This ASU removes the concept of extraordinary items from GAAP. Under existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is of an unusual nature and occurs infrequently. This separate, net-of-tax presentation will no longer be allowed. The amendments are effective for interim and annual reporting periods beginning after December 15, 2015. The Company does not expect the adoption of this guidance to have a material impact on its financial position, cash flows or results of operations. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Entities that have historically presented debt issuance costs as an asset, related to a recognized debt liability, will be required to present those costs as a direct deduction from the carrying amount of that debt liability. The ASU does not change the recognition, measurement, or subsequent measurement guidance for debt issuance costs. Adoption of this ASU will be applied retrospectively. In August 2015, the FASB issued ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30) ("Update 2015-15"), which addresses the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements, given the absence of authoritative guidance within Update 2015-03 for debt issuance costs related to line-of-credit arrangements. The amendments are effective for interim and annual reporting periods beginning after December 15, 2015. The Company does not expect the adoption of this guidance to have a material impact on its financial position, cash flows or results of operations. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The guidance is effective for financial statements issued for annual periods beginning after 15 December 2016, and interim periods within those annual periods. Early adoption is permitted. The guidance may be adopted on either a prospective or retrospective basis. The Company has chosen to early adopt ASU No. 2015-17 for the period ended December 31, 2015. Changes to the balance sheet have been applied on a retrospective basis. Adoption did not have a material impact on the financial position, cash flows or results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in this update require, among other things, that lessees recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The amendments are effective for interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the impacts of the amendments to our financial statements and accounting practices for leases. |
Properties, Plant and Equipment
Properties, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Properties, Plant and Equipment | |
Properties, Plant and Equipment | 3. Properties, Plant and Equipment Oil and Gas Properties The Company accounts for its oil and natural gas exploration and production activities under the successful efforts method of accounting. Oil and gas properties consisted of the following at December 31, 2015 and 2014: (in thousands of dollars) 2015 2014 Mineral interests in properties Unproved $ $ Proved Wells and equipment and related facilities ​ ​ ​ ​ ​ ​ ​ ​ Less: Accumulated depletion and impairment ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net oil and gas properties $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2015 and 2014, we had no material capitalized costs associated with exploratory wells. No interest costs were capitalized in 2015. The Company capitalized less than $0.1 million in interest costs during 2014. Costs incurred to maintain wells and related equipment are charged to expense as incurred. Depletion of oil and gas properties amounted to $204.2 million, $180.6 million, and $113.3 million for the years ended December 31, 2015, 2014, and 2013, respectively. No impairments of proved or unproved properties were recorded in 2015, 2014, or 2013. Certain prior period amounts have been reclassified to conform to the current presentation, include the reclassification of Impairment of oil and gas properties to Exploration in the Consolidated Statement of Operations for the twelve months ended December 31, 2013 relating to lease abandonment charges of $14.4 million for certain leases that the Company did not plan to develop. Other Property, Plant and Equipment Other property, plant and equipment consisted of the following at December 31, 2015 and 2014: (in thousands of dollars) 2015 2014 Leasehold improvements $ $ Furniture, fixtures, computers and software Vehicles Aircraft Other ​ ​ ​ ​ ​ ​ ​ ​ Less: Accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net other property, plant and equipment $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization of other property, plant and equipment amounted to $1.3 million, $1.1 million, and $0.8 million during the years ended December 31, 2015, 2014 and 2013, respectively. |
Acquisition of Properties
Acquisition of Properties | 12 Months Ended |
Dec. 31, 2015 | |
Acquisition of Properties | |
Acquisition of Properties | 4. Acquisition of Properties No business combinations occurred during the twelve months ended December 31, 2015 and 2014. On December 18, 2013, JEH closed on the purchase of certain oil and natural gas properties located in Texas and western Oklahoma from Sabine Mid-Continent, LLC, for a purchase price of $193.5 million (referred to herein as the "Sabine acquisition" or "Sabine"), subject to customary closing adjustments. The acquired assets included both producing properties and undeveloped acreage. The purchase was financed with borrowings under the Revolver. In the second quarter of 2014, the Company made a final determination with the sellers as to the purchase price resulting in a final purchase price of $179.2 million. The amount of the total purchase price allocated to undeveloped oil and gas properties was reduced by these adjustments. The adjustments were retroactively applied to our December 31, 2013 Consolidated Balance Sheet as a reduction to oil and gas properties and an increase in receivables. The adjusted purchase price was allocated as follows: (in thousands of dollars) Oil and gas properties Unproved $ Proved Asset retirement obligations ) ​ ​ ​ ​ ​ Total purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The unaudited pro forma results presented below have been prepared to include the effect of the Sabine acquisition on our results of operations for the year ended December 31, 2013. The unaudited pro forma results do not purport to represent what our actual results of operations would have been if the acquisition had been completed on January 1, 2013 or to project our results of operations for any future date or period. Year Ended December 31, 2013 Post Acquisition(1) (in thousands of dollars) Pro Forma (unaudited) (unaudited) Total operating revenue $ $ Total operating expenses Operating income Net income (1) Represents revenues and expenses for the post acquisition period of December 18, 2013 to December 31, 2013 included in the Consolidated Statement of Operations. The acquisition qualified as a business combination. The valuation to determine the fair values were principally based on the discounted cash flows of the producing and undeveloped properties, including projected drilling and equipment costs, recoverable reserves, production streams, future prices and operating costs, and risk-adjusted discount rates reflective of the market at the time of acquisition. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt | |
Long-Term Debt | 5. Long-Term Debt Long-term debt consisted of the following at December 31, 2015 and 2014: (in thousands of dollars) December 31, 2015 December 31, 2014 Revolver $ $ 2022 Notes 2023 Notes — ​ ​ ​ ​ ​ ​ ​ ​ Total principal amount Less: unamortized discount ) — ​ ​ ​ ​ ​ ​ ​ ​ Total carrying amount $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Senior Unsecured Notes On April 1, 2014, JEH and Jones Energy Finance Corp., JEH's wholly-owned subsidiary formed for the sole purpose of co-issuing certain of JEH's debt (together the "Issuers"), sold $500.0 million in aggregate principal amount of the Issuers' 6.75% senior notes due 2022 (the "2022 Notes"). The Company used the net proceeds from the issuance of the 2022 Notes to repay all outstanding borrowings under the Term Loan ($160.0 million), a portion of the outstanding borrowings under the Revolver ($308.0 million) and for working capital and general corporate purposes. The Company subsequently terminated the Term Loan in accordance with its terms. The 2022 Notes bear interest at a rate of 6.75% per year, payable semi-annually on April 1 and October 1 of each year beginning October 1, 2014. On February 5, 2015, the Company filed a registration statement on Form S-4 to register exchange notes that are substantially similar to the 2022 Notes, except that the transfer restrictions, registration rights and additional interest provisions related to the outstanding 2022 Notes do not apply to the new 2022 Notes. On February 20, 2015, the registration statement was declared effective and the Company commenced an offer to exchange any and all of its $500 million outstanding principal amount of 2022 Notes for an equal amount of new 2022 Notes. The exchange offer expired on March 23, 2015. Tenders of $500 million aggregate principal amount, or 100%, of the 2022 Notes were received. On February 23, 2015, the Issuers sold $250.0 million in aggregate principal amount of 9.25% senior notes due 2023 (the "2023 Notes") in a private placement to affiliates of GSO Capital Partners LP and Magnetar Capital LLC. The 2023 Notes were issued at a discounted price equal to 94.59% of the principal amount. The Company used the $236.5 million net proceeds from the issuance of the 2023 Notes to repay outstanding borrowings under the Revolver and for working capital and general corporate purposes. The 2023 Notes bear interest at a rate of 9.25% per year, payable semi-annually on March 15 and September 15 of each year beginning September 15, 2015. On November 18, 2015, the Company filed a registration statement on Form S-4 to register exchange notes that are substantially similar to the 2023 Notes, except that the transfer restrictions, registration rights and additional interest provisions related to the outstanding 2023 Notes do not apply to the new 2023 Notes. See Note 15, "Subsequent Events," in the Notes to Consolidated Financial Statements for further discussion. The 2022 Notes and 2023 Notes are guaranteed on a senior unsecured basis by the Company and by all of its significant subsidiaries. The 2022 Notes and 2023 Notes will be senior in right of payment to any future subordinated indebtedness of the Issuers. The Company may redeem the 2022 Notes at any time on or after April 1, 2017 and the 2023 Notes at any time on or after March 15, 2018 at a declining redemption price set forth in the respective indentures, plus accrued and unpaid interest. The indentures governing the 2022 Notes and 2023 Notes are substantially similar and contain covenants that, among other things, limit the ability of the Company to incur additional indebtedness or issue certain preferred stock, pay dividends on capital stock, transfer or sell assets, make investments, create certain liens, enter into agreements that restrict dividends or other payments from the Company's restricted subsidiaries to the Company, consolidate, merge or transfer all of the Company's assets, engage in transactions with affiliates or create unrestricted subsidiaries. However, many of these covenants will be suspended if the Notes are rated investment grade. Other Long-Term Debt The Company entered into two credit agreements dated December 31, 2009, with Wells Fargo Bank N.A, the Senior Secured Revolving Credit Facility (the "Revolver") and the Second Lien Term Loan (the "Term Loan"), each of which have been or were amended periodically. On April 1, 2014, the Term Loan was repaid in full and terminated in connection with the issuance of the 2022 Notes. On November 6, 2014, the Company amended the Revolver to, among other things, increase the borrowing base under the Revolver from $550.0 million to $625.0 million until the next redetermination thereof, and extend the maturity date of the Revolver to November 6, 2019. The Company's oil and gas properties are pledged as collateral to secure its obligations under the Revolver. The borrowing base on the Revolver was subsequently adjusted to $562.5 million in accordance with its terms as a result of the issuance of the 2023 Notes in February 2015 and was reaffirmed at this level effective April 1, 2015. Effective October 8, 2015, the borrowing base was reduced to $510 million during the semi-annual borrowing base re-determination. The terms of the Revolver require the Company to make periodic payments of interest on the loans outstanding thereunder, with all outstanding principal and interest under the Revolver due on the maturity date. The Revolver is subject to a borrowing base which limits the amount of borrowings which may be drawn thereunder. The borrowing base will be redetermined by the lenders at least semi-annually on or about April 1 and October 1 of each year, with such redetermination based primarily on reserve reports using lender commodity price expectations at such time. In light of current commodity prices, it is our expectation that the borrowing base will be reduced during the upcoming redetermination. Any reduction in the borrowing base will reduce our liquidity, and, if the reduction results in the outstanding amount under our revolving credit facility exceeding the borrowing base, we will be required to repay the deficiency within a short period of time. Interest on the Revolver is calculated, at the Company's option, at either (a) the London Interbank Offered ("LIBO") rate for the applicable interest period plus a margin of 1.50% to 2.50% based on the level of borrowing base utilization at such time or (b) the greatest of the federal funds rate plus 0.50%, the one-month adjusted LIBO rate plus 1.00%, or the prime rate announced by Wells Fargo Bank, N.A. in effect on such day, in each case plus a margin of 0.50% to 1.50% based on the level of borrowing base utilization at such time. For the year ended December 31, 2015, the average interest rate under the Revolver was 2.39% on an average outstanding balance of $144.9 million. For the year ended December 31, 2014, the average interest rate under the Revolver was 2.51% on an average outstanding balance of $333.8 million. Total interest and commitment fees under the Revolver were $5.1 million, $9.5 million, and $12.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. Total interest and commitment fees under the Term Loan were $3.6 million and $14.7 million for the years ended December 31, 2014 and 2013, respectively. Jones Energy, Inc. and its consolidated subsidiaries are subject to certain covenants under the Revolver, including the requirement to maintain the following financial ratios: • a total leverage ratio, consisting of consolidated debt to EBITDAX, of not greater than 4.00 to 1.00 as of the last day of any fiscal quarter; and • a current ratio, consisting of consolidated current assets, including the unused amounts of the total commitments, to consolidated current liabilities, of not less than 1.0 to 1.0 as of the last day of any fiscal quarter. As of December 31, 2015, our total leverage ratio is approximately 3.2 and our current ratio is approximately 6.9, as calculated based on the requirements in our covenants. We believe that we are in compliance with all terms of our Revolver and expect to maintain compliance during 2016. However, factors including those outside of our control, such as commodity price declines, may prevent us from maintaining compliance with these covenants, at future measurement dates in 2016 and beyond. In the event it were to became necessary, we believe we have the ability to take actions that would prevent us from failing to comply with our covenants, such as hedge restructuring. While it is our expectation that we will continue to be in compliance with our covenants, no assurance can be given that this will be the case. If an event of default exists under the Revolver, the lenders will be able to accelerate the obligations outstanding under the Revolver and exercise other rights and remedies. Our Revolver contains customary events of default, including the occurrence of a change of control, as defined in the Revolver. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | 6. Derivative Instruments and Hedging Activities The Company had various commodity derivatives in place that could affect its future operations as of December 31, 2015 and 2014, as follows: Hedging Positions December 31, 2015 Low High Weighted Average Final Expiration Oil swaps Exercise price $ $ $ Barrels per month June 2019 Natural gas swaps Exercise price $ $ $ mmbtu per month June 2019 Basis swaps Contract differential $ ) $ ) $ ) mmbtu per month December 2016 Natural gas liquids swaps Exercise price $ $ $ Barrels per month December 2017 December 31, 2014 Low High Weighted Average Final Expiration Oil swaps Exercise price $ $ $ Barrels per month December 2018 Natural gas swaps Exercise price $ $ $ mmbtu per month December 2018 Basis swaps Contract differential $ ) $ ) $ ) mmbtu per month March 2016 Natural gas liquids swaps Exercise price $ $ $ Barrels per month December 2017 The Company recognized a net gain on derivative instruments of $158.8 million and $189.6 million for the years ended December 31, 2015 and 2014, respectively, and a net loss of $2.6 million for the year ended December 31, 2013. Offsetting Assets and Liabilities As of December 31, 2015, the counterparties to our commodity derivative contracts consisted of six financial institutions. All of our counterparties or their affiliates are also lenders under the Revolver. We are not generally required to post additional collateral under our derivative agreements. Our derivative agreements contain set-off provisions that state that in the event of default or early termination, any obligation owed by the defaulting party may be offset against any obligation owed to the defaulting party. We adopted the guidance requiring disclosure of both gross and net information about financial instruments eligible for netting in the balance sheet under our derivative agreements. The following table presents information about our commodity derivative contracts that are netted on our Consolidated Balance Sheet as of December 31, 2015 and December 31, 2014: (in thousands of dollars) Gross Amounts of Recognized Assets / Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Assets / Liabilities Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet Net Amount December 31, 2015 Commodity derivative contracts Assets $ $ ) $ $ — $ Liabilities ) ) — ) December 31, 2014 Commodity derivative contracts Assets $ $ ) $ $ — $ Liabilities ) ) — ) |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurement | |
Fair Value Measurement | 7. Fair Value Measurement Fair Value of Financial Instruments The Company determines fair value amounts using available market information and appropriate valuation methodologies. Fair value is the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methods may have a material effect on the estimated fair value amounts. The Company enters into a variety of derivative financial instruments, which may include over-the-counter instruments, such as natural gas, crude oil, and natural gas liquid contracts. The Company utilizes valuation techniques that maximize the use of observable inputs, where available. If listed market prices or quotes are not published, fair value is determined based upon a market quote, adjusted by other market-based or independently sourced market data, such as trading volume, historical commodity volatility, and counterparty-specific considerations. These adjustments may include amounts to reflect counterparty credit quality, the time value of money, and the liquidity of the market. Counterparty credit valuation adjustments are necessary when the market price of an instrument is not indicative of the fair value as a result of the credit quality of the counterparty. Generally, market quotes assume that all counterparties have low default rates and equal credit quality. Therefore, an adjustment may be necessary to reflect the quality of a specific counterparty to determine the fair value of the instrument. The Company currently has all derivative positions placed and held by members of its lending group, which have strong credit quality. Liquidity valuation adjustments are necessary when the Company is not able to observe a recent market price for financial instruments that trade in less active markets. Exchange traded contracts are valued at market value without making any additional valuation adjustments; therefore, no liquidity reserve is applied. Valuation Hierarchy Fair value measurements are grouped into a three-level valuation hierarchy. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument's categorization within the hierarchy is based upon the input that requires the highest degree of judgment in the determination of the instrument's fair value. The three levels are defined as follows: Level 1 Pricing inputs are based on published prices in active markets for identical assets or liabilities as of the reporting date. The Company does not classify any of its financial instruments in Level 1. Level 2 Pricing inputs include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, as of the reporting date. Contracts that are not traded on a recognized exchange or are tied to pricing transactions for which forward curve pricing is readily available are classified as Level 2 instruments. These include natural gas, crude oil and some natural gas liquids price swaps and natural gas basis swaps. Level 3 Pricing inputs include significant inputs that are generally unobservable from objective sources. The Company classifies natural gas liquid swaps and basis swaps for which future pricing is not readily available as Level 3. The Company obtains estimates from independent third parties for its open positions and subjects those to the credit adjustment criteria described above. The financial instruments carried at fair value as of December 31, 2015 and 2014, by consolidated balance sheet caption and by valuation hierarchy, as described above are as follows: December 31, 2015 Fair Value Measurements Using (in thousands of dollars) (Level 1) (Level 2) (Level 3) Total Commodity Price Hedges Current assets $ — $ $ $ Long-term assets — — Current liabilities — — Long-term liabilities — — — — December 31, 2014 Fair Value Measurements Using (in thousands of dollars) (Level 1) (Level 2) (Level 3) Total Commodity Price Hedges Current assets $ — $ $ $ Long-term assets — Current liabilities — — — — Long-term liabilities — — The following table represents quantitative information about Level 3 inputs used in the fair value measurement of the Company's commodity derivative contracts as of December 31, 2015. Quantitative Information About Level 3 Fair Value Measurements Commodity Price Hedges Fair Value (000's) Valuation Technique Unobservable Input Range Natural gas liquid swaps $ Use a discounted cash flow approach using inputs including forward price statements from counterparties Natural gas liquid futures $8.90 - $47.25 per barrel Significant increases/decreases in natural gas liquid prices in isolation would result in a significantly lower/higher fair value measurement. The following table presents the changes in the Level 3 financial instruments for the years ended December 31, 2015 and 2014. Changes in fair value of Level 3 instruments represent changes in gains and losses for the periods that are reported in other income (expense). New contracts entered into during the year are generally entered into at no cost with changes in fair value from the date of agreement representing the entire fair value of the instrument. Transfers between levels are evaluated at the end of the reporting period. (in thousands of dollars) Balance at December 31, 2013, net $ ) Purchases Settlements Transfers into Level 3 ) Transfers to Level 2 Changes in fair value ​ ​ ​ ​ ​ Balance at December 31, 2014, net Purchases Settlements ) Transfers into Level 3 — Transfers to Level 2 ) Changes in fair value ​ ​ ​ ​ ​ Balance at December 31, 2015, net $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Transfers from Level 3 to Level 2 represent the Company's natural gas basis swaps for which observable forward curve pricing information has become readily available. Purchases represent natural gas liquid swaps that the Company entered into that do not have observable forward curve pricing information. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The following table provides the fair value of financial instruments that are not recorded at fair value in the consolidated financial statements: December 31, 2015 December 31, 2014 (in thousands of dollars) Principal Amount Fair Value Principal Amount Fair Value Debt: Revolver $ $ $ $ 2022 Notes 2023 Notes — — The Revolver (as defined in Note 5) is categorized as Level 3 in the valuation hierarchy as the debt is not publicly traded and no observable market exists to determine the fair value; however, the carrying value of the Revolver approximates fair value, as it is subject to short-term floating interest rates that approximate the rates available to the Company for those periods. The fair value of the 2022 Notes (as defined in Note 5) is based on pricing that is readily available in the public market. Accordingly, the 2022 Notes are classified as Level 1 in the valuation hierarchy as the pricing is based on quoted market prices for the debt securities and is actively traded. The fair value of the 2023 Notes (as defined in Note 5) is based on indicative pricing that is available in the public market. Accordingly, the 2023 Notes are classified as Level 2 in the valuation hierarchy as the pricing is based on quoted market prices for the debt securities but is not actively traded. Assets and liabilities acquired in business combinations are recorded at their fair value on the date of acquisition. Significant Level 3 assumptions associated with the calculation of future cash flows used in the analysis of fair value of the oil and gas property acquired include the Company's estimate of future commodity prices, production costs, development expenditures, production, risk-adjusted discount rates, and other relevant data. Additionally, fair value is used to determine the inception value of the Company's AROs. The inputs used to determine such fair value are primarily based upon costs incurred historically for similar work, as well as estimates from independent third parties for costs that would be incurred to restore leased property to the contractually stipulated condition. Additions to the Company's ARO represent a nonrecurring Level 3 measurement. The Company reviews its proved oil and gas properties for impairment purposes by comparing the expected undiscounted future cash flows at a producing field level to the unamortized capitalized cost of the asset. Significant assumptions associated with the calculation of future cash flows used in the impairment analysis include the Company's estimate of future commodity prices, production costs, development expenditures, production, risk-adjusted discount rates, and other relevant data. As such, the fair value of oil and gas properties used in estimating impairment represents a nonrecurring Level 3 measurement. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | 8. Asset Retirement Obligations A summary of the Company's ARO for the years ended December 31, 2015 and 2014 is as follows: (in thousands of dollars) 2015 2014 ARO liability at beginning of year $ $ Liabilities incurred(1) Accretion of ARO liability Liabilities settled due to sale of related properties ) ) Liabilities settled due to plugging and abandonment ) ) Change in estimate ​ ​ ​ ​ ​ ​ ​ ​ ARO liability at end of year Less: Current portion of ARO at end of year ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total long-term ARO at end of year $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes $4.7 million to correct immaterial errors originating in 2013 and 2014. In addition to the balance sheet impact noted, Accretion of ARO liability of $0.2 million and Depletion, depreciation, and amortization of $0.6 million were recognized in our statement of operations during the fourth quarter of 2015 as a correcting adjustment. We have determined that this adjustment is not material to the consolidated financial statements of any period presented. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Stock-based Compensation | |
Stock-based Compensation | 9. Stock-based Compensation Management Unit Awards Effective January 1, 2010, JEH implemented a management incentive plan that provided indirect awards of membership interests in JEH to members of senior management ("management units"). These awards had various vesting schedules, and a portion of the management units vested in a lump sum at the IPO date. In connection with the IPO, both the vested and unvested management units were converted into the right to receive JEH Units and shares of Class B common stock. The JEH Units (together with a corresponding number of shares of Class B common stock) will become exchangeable under this plan into a like number of shares of Class A common stock upon vesting or forfeiture. No new management units have been awarded since the IPO and no new JEH Units or shares of Class B common stock are created upon a vesting event. Grants listed below reflect the transfer of JEH units that occurred upon forfeiture. The following table summarizes information related to the vesting of management units as of December 31, 2015: JEH Units Weighted Average Grant Date Fair Value per Share Unvested at December 31, 2014 $ Granted $ Forfeited ) $ Vested ) $ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock compensation expense associated with the management units for the years ended December 31, 2015, 2014 and 2013 was $1.3 million, $1.6 million, and $10.7 million, respectively, and is included in general and administrative expenses on the Company's Consolidated Statement of Operations. The weighted average grant date fair value of management units was $15.00 per share for the year ended December 31, 2015. Unrecognized expense as of December 31, 2015 for all outstanding management units was $2.8 million and will be recognized over a weighted-average remaining period of 1.2 years. 2013 Omnibus Incentive Plan Under the Jones Energy, Inc. 2013 Omnibus Incentive Plan (the "LTIP"), established in conjunction with the Company's IPO, the Company reserved 3,850,000 shares of Class A common stock for non-employee director, consultant and employee stock-based compensation awards. The Company granted (i) performance unit and restricted stock unit awards to certain officers and employees and (ii) restricted shares of Class A common stock to the Company's non-employee directors under the LTIP during 2014 and 2015. Restricted Stock Unit Awards The Company has outstanding restricted stock unit awards granted to certain officers and employees of the Company under the LTIP. The fair value of the restricted stock unit awards was based on the value of the Company's Class A common stock on the date of grant and is expensed on a straight-line basis over the applicable vesting period, which is typically three years. The following table summarizes information related to the total number of units awarded to officers and employees as of December 31, 2015: Restricted Stock Unit Awards Weighted Average Grant Date Fair Value per Share Unvested at December 31, 2014 $ Granted $ Forfeited ) $ Vested ) $ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock compensation expense associated with the employee restricted stock unit awards for the years ended December 31, 2015 and 2014 was $3.1 million and $1.1 million, respectively, and is included in general and administrative expenses on the Company's Consolidated Statement of Operations. There was no stock compensation expense associated with the employee restricted stock unit awards for the year ended December 31, 2013. The weighted average grant date fair value of restricted stock units was $9.58 per share, and $17.31 per share for the years ended December 31, 2015 and 2014, with no awards made during the year ended December 31, 2013. Unrecognized expense as of December 31, 2015 for all outstanding restricted stock unit awards was $5.9 million and will be recognized over a weighted-average remaining period of 1.1 years. Performance Unit Awards The Company has outstanding performance unit awards granted to certain officers of the Company under the LTIP. Upon the completion of the applicable three-year performance period, each officer may vest in a number of performance units. The percent of awarded performance units in which each officer vests at such time, if any, will range from 0% to 200% based on the Company's total shareholder return relative to an industry peer group over the applicable three-year performance period. Each vested performance unit is exchangeable for one share of the Company's Class A common stock. The grant date fair value of the performance units was determined using a Monte Carlo simulation model, which results in an estimated percentage of performance units earned. The fair value of the performance units is expensed on a straight-line basis over the applicable three-year performance period. The following table summarizes information related to the total number of units awarded to the officers as of December 31, 2015: Performance Unit Awards Weighted Average Grant Date Fair Value per Share Unvested at December 31, 2014 $ Granted $ Forfeited — — Vested ) $ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock compensation expense associated with the performance unit awards for the years ended December 31, 2015 and 2014 was $2.6 million and $0.9 million, respectively, and is included in general and administrative expenses on the Company's Consolidated Statement of Operations. There was no stock compensation expense associated with the performance unit awards for the year ended December 31, 2013. The weighted average grant date fair value of performance unit awards was $10.27 per share, and $21.65 per share for the years ended December 31, 2015 and 2014, with no awards made during the year ended December 31, 2013. Unrecognized expense as of December 31, 2015 for all outstanding performance unit awards was $4.0 million and will be recognized over a weighted-average remaining period of 1.5 years. The Monte Carlo simulation process is a generally accepted statistical technique used, in this instance, to simulate future stock prices for the Company and the components of the peer group. The simulation uses a risk- neutral framework along with the risk-free rate of return, the volatility of each entity, and the correlations of each entity with the other entities in the peer group. A stock price path has been simulated for the Company and each peer company and is used to determine the payout percentages and the stock price of the Company's common stock as of the vesting date. The ending stock price is multiplied by the payout percentage to determine the projected payout, which is then discounted using the risk-free rate of return to the grant date to determine the grant date fair value for that simulation. When enough simulations are generated, the resulting distribution gives a reasonable estimate of the range of future expected stock prices. The following assumptions were used for the Monte Carlo simulation model to determine the grant date fair value and associated compensation expense during the periods presented: 2015 Performance Unit Awards 2014 Performance Unit Awards Stock Price(1) $ $ Beginning Average Stock Price(2) $ $ Expected Volatility(3) % % Risk-Free Rate of Return(4) % % (1) Based on the closing price of Jones Energy, Inc. Class A common stock on April 29, 2015 and May 20, 2014. (2) Based on the 10 trading days immediately prior to the beginning of the performance period. (3) For the 2015 award this is based on the average historical volatilities over the most recent 2.67 ‑year period for the Company and each peer company using daily stock prices through April 29, 2015. The measurement period reflects the 2.67 years remaining in the performance period as of the grant date. For the 2014 award this is based on the average historical volatilities over the most recent 2.62 ‑year period for the Company and each peer company using daily stock prices through May 20, 2014. The measurement period reflects the 2.62 years remaining in the performance period as of the grant date. (4) B ased on the yield curve of U.S. Treasury rates as of April 29, 2015 and May 20, 2014. Based on these assumptions, the Monte Carlo simulation model resulted in an expected percentage of performance units earned of 101.61% and 126.80% for the 2015 and 2014 awards, respectively. Restricted Stock Awards The Company has outstanding restricted stock awards granted to the Company's non-employee members of the Board of Directors under the LTIP. The restricted stock will vest upon the director serving as a director of the Company for a one-year service period in accordance with the terms of the award. The fair value of the awards was based on the price of the Company's Class A common stock on the date of grant. The following table summarizes information related to the total value of the awards to the Board of Directors as of December 31, 2015: Restricted Stock Awards Weighted Average Grant Date Fair Value per Share Unvested at December 31, 2014 $ Granted $ Forfeited — — Vested ) $ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock compensation expense associated with the Board of Directors awards for the years ended December 31, 2015, 2014 and 2013 was $0.6 million, $0.4 million, and $0.1 million, respectively, and is included in general and administrative expenses on the Company's Consolidated Statement of Operations. The weighted average grant date fair value of restricted stock awards was $7.30 per share, $18.77 per share, and $15.05 per share for the years ended December 31, 2015, 2014 and 2013. Unrecognized expense as of December 31, 2015 for all outstanding restricted stock awards was $0.2 million and will be recognized over the remaining vesting period of 0.4 years. For the years ended December 31, 2015, 2014, and 2013, the Company had an associated tax benefit of $1.1 million, $0.4 million, and $0.1 million, respectively, related to all stock-based compensation, calculated at the federal statutory rate after adjusting for the non-controlling interest. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Benefit Plans | |
Benefit Plans | 10. Benefit Plans The Company established a tax-qualified 401(k) savings plan (the "Plan") for the benefit of employees. The Plan is a defined contribution plan and the Company may match a portion of employee contributions to the Plan. In addition, during 2013, the Company established a non-qualified deferred compensation plan for the benefit of key employees. The non-qualified deferred compensation plan is an unfunded, account-based plan under which key employees of the Company may elect to defer a portion of their base salary and/or bonus. For the year ended December 31, 2015, our total expense relating to these plans was $0.5 million. Our total expense relating to these plans for each of the years ended December 31, 2014 and 2013 was $0.3 million. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Income Taxes | 11. Income Taxes Following its IPO, the Company began recording federal and state income tax liabilities associated with its status as a corporation. Prior to the IPO, the Company only recorded a provision for Texas franchise tax as the Company's taxable income or loss was includable in the income tax returns of the individual partners and members. The Company will recognize a tax liability on its share of pre-tax book income, exclusive of the non-controlling interest. JEH is not subject to income tax at the federal level and only recognizes Texas franchise tax expense. The following table summarizes the tax provision for the years ended December 31, 2015, 2014 and 2013: Year Ended December 31, (in thousands of dollars) 2015 2014 2013 Current tax expense: Federal $ — $ $ State — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax expense (benefit): Federal ) ) State ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred expense (benefit) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total tax expense (benefit) ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax expense (benefit) attributable to controlling interests ) $ ) Tax expense attributable to non-controlling interests ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax expense (benefit) ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the pre-IPO period of the year ended December 31, 2013, the reported taxes in the table above relate solely to the Texas franchise tax liability of JEH. A reconciliation of the Company's provision for income taxes as reported and the amount computed by multiplying income before taxes, less non-controlling interest, by the U.S. federal statutory rate of 35%: (in thousands of dollars) 2015 2014 2013 Provision calculated at federal statutory income tax rate: Net income before taxes $ ) $ $ Statutory rate % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense (benefit) computed at statutory rate $ ) $ $ Less: Non-controlling interests ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense (benefit) attributable to controlling interests ) ) State and local income taxes, net of federal benefit ) ) Reduction of TRA liability ) — — Equity compensation, shortfall — — Change in enacted rate ) — — Change in valuation allowance — — Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax expense (benefit) attributable to controlling interests ) ) Tax expense attributable to non-controlling interests ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax expense (benefit)(1) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Deferred tax expense of the year ended December 31, 2015 includes the correction of an immaterial error from the year ended December 31, 2014, whereby deferred tax expense was overstated in 2014 and understated in 2015 by $0.9 million. We have determined that this adjustment is not material to the consolidated financial statements of any period presented. The Company is subject to federal, state, and local income and franchise taxes. As such, deferred income taxes result from temporary differences between the carrying amounts of assets and liabilities of the Company for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using enacted tax rates in effect in the years in which those temporary differences are expected to reverse. In 2015, Texas enacted legislation that reduced the tax rate from 1.0% to 0.75%. We recorded a tax benefit of $1.7 million as a result of revaluing our deferred tax assets at the newly enacted rate, of which $1.0 million was attributable to the non-controlling interest. Significant components of the Company's deferred tax assets and deferred tax liabilities consisted of the following: As of December 31, (in thousands of dollars) 2015 2014 Deferred tax assets Net operating loss $ $ Section 754 election tax basis adjustment Alternative minimum tax credits — Other deferred tax asset ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities Investment in consolidated subsidiary JEH Noncurrent state deferred tax liability ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets (liabilities) ) ) Valuation allowance ) — ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets (liabilities) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company has a federal net operating loss carry-forward totaling $24.8 million and state net operating loss carry-forward of $19.5 million, both of which expire between 2033 and 2035. The tax benefits of carryforwards are recorded as an asset to the extent that management assesses the utilization of such carryforwards to be more likely than not. When the future utilization of some portion of the carryforwards is determined not to be more likely than not, a valuation allowance is provided to reduce the recorded tax benefits from such assets. As of December 31, 2015, we have a valuation allowance of $2.3 million as a result of management's assessment of the realizability of deferred tax assets in Oklahoma. Management believes that there will be sufficient future taxable income based on the reversal of temporary differences to enable utilization of substantially all other tax carryforwards. Separate federal and state income tax returns are filed for Jones Energy, Inc. and Jones Energy Holdings, LLC. JEH's Texas franchise tax returns are subject to audit for 2011 through 2015. The tax years 2012 through 2015 remain open to examination by the major taxing jurisdictions to which the Company is subject. The Internal Revenue Service is currently examining the 2013 federal partnership income tax return for JEH. Accounting for uncertainty in income taxes prescribes a recognition threshold and measurement methodology for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As of December 31, 2015, 2014 and 2013 there was no material liability or expense for the periods then ended recorded for payments of interest and penalties associated with uncertain tax positions or material unrecognized tax positions and the Company's unrecognized tax benefits were not material. Tax Receivable Agreement In connection with the IPO, the Company entered into a Tax Receivable Agreement (the "TRA") which obligates the Company to make payments to certain current and former owners equal to 85% of the applicable cash savings that the Company realizes as a result of tax attributes arising from exchanges of JEH Units and shares of the Company's Class B common stock held by those owners for shares of the Company's Class A common stock. The Company will retain the benefit of the remaining 15% of these tax savings. At the time of an exchange, the company records a liability to reflect the future payments under the TRA. The actual amount and timing of payments to be made under the TRA will depend upon a number of factors, including the amount and timing of taxable income generated in the future, changes in future tax rates, the use of loss carryovers, and the portion of the Company's payments under the TRA constituting imputed interest. In the event that the Company records a valuation allowance against its deferred tax assets associated with an exchange, the TRA liability will also be reduced as the payment of the TRA liability is dependent on the realizability of the deferred tax assets. As of December 31, 2015, the amount of the TRA liability was reduced by $2.0 million as a result of the valuation allowance recorded against the Company's deferred tax assets. To the extent the Company does not realize all of the tax benefits in future years or in the event of a change in future tax rates, this liability may change. As of December 31, 2015 and 2014 the Company had recorded a TRA liability of $38.1 million and $0.8 million, respectively, for the estimated payments that will be made to the pre-IPO members who have exchanged shares along with corresponding deferred tax assets, net of valuation allowance, of $44.8 million and $0.9 million, respectively, as a result of the increase in tax basis generated arising from such exchanges. The increase in the TRA liability was primarily driven by the exchange of 5 million JEH Units and Class B shares of common stock by Metalmark Captial in May of 2015. As of December 31, 2015, the Company had not made any payments under the TRA to pre-IPO members who have exchanged JEH units and Class B common stock for Class A common stock. The Company does not anticipate making a material payment under the TRA in 2016. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings per Share | |
Earnings per Share | 12. Earnings per Share Basic earnings per share ("EPS") is computed by dividing net income (loss) attributable to controlling interests by the weighted-average number of shares of Class A common stock outstanding during the period. Shares of Class B common stock are not included in the calculation of earnings per share because they are not participating securities and have no economic interest in the Company. Diluted earnings per share takes into account the potential dilutive effect of shares that could be issued by the Company in conjunction with stock awards that have been granted to directors and employees. Awards of nonvested shares are considered outstanding as of the respective grant dates for purposes of computing diluted EPS even though the award is contingent upon vesting. For the twelve months ended December 31, 2015, 757,245 restricted stock shares, 67,380 restricted stock units and 539,188 performance units were excluded from the calculation as they would have had an anti-dilutive effect. For the twelve months ended December 31, 2014, 27,430 restricted stock shares, 54,656 restricted stock units and 192,998 performance units were excluded from the calculation as they would have had an anti-dilutive effect. The following is a calculation of the basic and diluted weighted-average number of shares of Class A common stock outstanding and EPS. 2014 is calculated using the twelve months ended December 31, 2014. 2013 is calculated for the period from July 29, 2013, the closing date of the IPO, to December 31, 2013. Basic Earnings per Share (in thousands, except per share data) 2015 2014 2013 Income (numerator): Net income (loss) attributable to controlling interests $ ) $ $ ) Weighted-average shares (denominator): Weighted-average number of shares of Class A common stock—basic Weighted-average number of shares of Class A common stock—diluted Earnings (loss) per share: Basic $ ) $ $ ) Diluted $ ) $ $ ) |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Related Parties | |
Related Parties | 13. Related Parties Related Party Transactions On May 7, 2013, the Company entered into a natural gas sale and purchase agreement with Monarch Natural Gas, LLC, ("Monarch"), under which Monarch has the first right to gather the natural gas the Company produces from dedicated properties, process the NGLs from this natural gas production and market the processed natural gas and extracted NGLs. Under the Monarch agreement, the Company is paid a specified percentage of the value of the NGLs extracted and sold by Monarch, based on a set liquids recovery percentage, and the amount received from the sale of the residue gas, after deducting a fixed volume for fuel, lost and unaccounted for gas. The Company produced approximately 1.4 MMBoe of natural gas and NGLs for the year ended December 31, 2014 and 0.8 MMBoe of natural gas and NGLs for the year ended December 31, 2013, from the properties that became subject to the Monarch agreement. During the years ended December 31, 2014 and 2013, the Company recognized $37.0 million and $10.4 million, respectively, of revenue associated to the aforementioned natural gas and NGL production. Effective May 1, 2015, the rights to gather natural gas under the sale and purchase agreement transferred from Monarch to Enable Midstream Partners LP, ("Enable"), an unaffiliated third-party. Prior to closing of the transfer of these rights, the Company produced approximately 1.0 MMBoe of natural gas and NGLs for the year ended December 31, 2015 from the properties that became subject to the Monarch agreement for which the Company recognized $10.6 million of revenue. The revenue, for all years mentioned, is recorded in Oil and gas sales on the Company's Consolidated Statement of Operations. The initial term of the agreement, which remains unchanged by the transfer to Enable, runs for 10 years from the effective date of September 1, 2013. At the time the Company entered into the 2013 Monarch agreement, Metalmark Capital owned approximately 81% of the outstanding equity interests of Monarch. In addition, Metalmark Capital beneficially owns in excess of five percent of the Company's outstanding equity interests and two of our directors, Howard I. Hoffen and Gregory D. Myers, are managing directors of Metalmark Capital. In the year ended December 31, 2013, the Company paid an annual administration fee to Metalmark of $0.7 million. This amount was recorded in general and administration expense on the Company's Consolidated Statement of Operations. As a result of the IPO, this fee is no longer payable to Metalmark. In connection with the Company's entering into the 2013 Monarch agreement, Monarch issued to JEH equity interests in Monarch, having an estimated fair value of $15 million, in return for marketing services to be provided throughout the term of the agreement. The Company recorded this amount as deferred revenue which is being amortized on an estimated units-of-production basis commencing in September 2013, the first month of product sales to Monarch. During the years ended December 31, 2015, 2014 and 2013, the Company amortized $2.0 million, $1.2 million, and $0.5 million, respectively, of the deferred revenue balance. This revenue is recorded in Other revenues on the Company's Consolidated Statement of Operations. Following the issuance of the $15 million Monarch equity interests, JEH assigned $2.4 million of the equity interests to Jonny Jones, the Company's chief executive officer and chairman of the board, and reserved $2.6 million of the equity interests for future distribution through an incentive plan to certain of the Company's officers, including Mike McConnell, Robert Brooks and Eric Niccum. The remaining $10 million of Monarch equity interests was distributed to certain of the pre-IPO owners, which included Metalmark Capital, Wells Fargo, the Jones family entities, and certain of the Company's officers and directors, including Jonny Jones, Mike McConnell and Eric Niccum. As of December 31, 2015, equity interests in Monarch of $1.3 million are included in Other assets on the Company's Consolidated Balance Sheet. During the years ended December 31, 2015 and 2014, equity interests of $0.8 million and $0.5 million, respectively, were distributed to management under the incentive plan. The Company recognized expense of $0.5 million, $0.8 million, and $0.3 million during the years ended December 31, 2015, 2014, and 2013, respectively, in connection with the incentive plan. In September 2014, the Company signed a 10-year oil gathering and transportation agreement with Monarch Oil Pipeline LLC, pursuant to which Monarch Oil Pipeline LLC built, at its expense, a new oil gathering system and connected the gathering system to dedicated Company leases in Texas. At the time the Company entered into the agreement, Metalmark Capital owned the majority of the outstanding equity interests of Monarch Oil Pipeline LLC and/or its parent. The system began service during the fourth quarter of 2015 and provides connectivity to both a regional refinery market as well as the Cushing market hub. The Company did not incur or capitalize any costs associated with the construction of the pipeline. The Company did, however, incur gathering fees of $0.4 million which were paid to Monarch Oil Pipeline LLC associated with the approximately 0.2 MMBoe of oil production transported under the agreement for the year ended December 31, 2015. These costs are recorded as an offset to Oil and gas sales in the Company's Consolidated Statement of Operations. The aforementioned production was recognized as Oil and gas sales on the Company's Consolidated Statement of Operations at the time it was sold to the purchasers, who are unaffiliated third-parties, after passing through the gathering and transportation system. The Company has reserved capacity of up to 12,000 barrels per day on the system with the potential to increase throughput at a future date. The audit committee of the Board reviewed and approved the terms of the agreement with Monarch Oil Pipeline LLC. In May 2015, the Company received a $0.7 million cash distribution associated with its equity interests in Monarch, which was accounted for following the cost method. The initial cash distribution from Monarch was treated as dividend income and is recorded in Other income (expense). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | 14. Commitments and Contingencies Lease obligations The Company leases approximately 43,000 square feet of office space in Austin, TX under an operating lease arrangement. Future minimum payments for all noncancellable operating leases extending beyond one year at December 31, 2015 are as follows: (in thousands of dollars) Years Ending December 31, 2016 $ 2017 2018 2019 2020 Thereafter — ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rent expense under operating leases was $1.6 million, $0.9 million and $0.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. Litigation The Company is subject to legal proceedings and claims that arise in the ordinary course of its business. The Company believes that the final disposition of such current matters will not have a material adverse effect on its financial position, results of operations, or liquidity. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events | |
Subsequent Events | 15. Subsequent Events On November 18, 2015, the Company filed a registration statement on Form S-4 to register exchange notes that are substantially similar to the 9.25% senior notes due November 2023 (the "2023 Notes"), except that the transfer restrictions, registration rights and additional interest provisions related to the outstanding 2023 Notes do not apply to the new 2023 Notes. On January 12, 2016, the registration statement was declared effective and the Company commenced an offer to exchange any and all of its $250 million outstanding principal amount of 2023 Notes for an equal amount of new 2023 Notes. The exchange offer expired on February 11, 2016. Tenders of $250 million aggregate principal amount, or 100%, of the 2023 Notes were received. In January and February 2016, through several open market and privately negotiated purchases, the Company purchased an aggregate principal amount of $170.5 million of its senior unsecured notes. As of February 29, 2016, the Company had purchased $70.5 million principal amount of its 2022 Notes for $27.1 million, and $100 million principal amount of its 2023 Notes for $46.5 million, in each case excluding accrued interest and including any associated fees. The Company used cash on hand and borrowings from its Revolver to fund the note purchases. As a result of these purchases, the Company had aggregate principal amount of senior unsecured notes outstanding of $579.5 million, outstanding borrowings under its revolving credit facility of $185 million, $325 million undrawn on its revolving credit facility, and $46 million in cash as of February 29, 2016. |
Subsidiary Guarantors
Subsidiary Guarantors | 12 Months Ended |
Dec. 31, 2015 | |
Subsidiary Guarantors | |
Subsidiary Guarantors | 16. Subsidiary Guarantors On April 1, 2014, the Issuers sold $500.0 million in aggregate principal amount of the 2022 Notes. On February 23, 2015, the Issuers sold $250.0 million in aggregate principal amount of the 2023 Notes. The 2022 Notes and the 2023 Notes are guaranteed on a senior unsecured basis by the Company and by all of JEH's current subsidiaries (except Jones Energy Finance Corp. and two immaterial subsidiaries) and certain future subsidiaries, including any future subsidiaries that guarantee any indebtedness under the Revolver. Each subsidiary guarantor is 100% owned by JEH, and all guarantees are full and unconditional, subject to customary exceptions pursuant to the indentures governing our 2022 Notes and 2023 Notes, as discussed below, and joint and several with all other subsidiary guarantees and the parent guarantee. Any subsidiaries of JEH other than the subsidiary guarantors and Jones Energy Finance Corp. are immaterial. Guarantees of the 2022 Notes and 2023 Notes will be released under certain circumstances, including (i) in connection with any sale or other disposition of (a) all or substantially all of the properties or assets of a guarantor (including by way of merger or consolidation) or (b) all of the capital stock of such guarantor, in each case, to a person that is not the Company or a restricted subsidiary of the Company, (ii) if the Company designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary, (iii) upon legal defeasance, covenant defeasance or satisfaction and discharge of the applicable indenture, or (iv) at such time as such guarantor ceases to guarantee any other indebtedness of the Company or any other guarantor. The Company is a holding company whose sole material asset is an equity interest in JEH. The Company is the sole managing member of JEH and is responsible for all operational, management and administrative decisions related to JEH's business. In accordance with JEH's limited liability company agreement, the Company may not be removed as the sole managing member of JEH. As of December 31, 2015, the Company held approximately 49.4% of the economic interest in JEH, with the remaining 50.6% economic interest held by a group of investors that owned interests in JEH prior to the Company's IPO (the "Existing Owners"). The Existing Owners have no voting rights with respect to their economic interest in JEH. The Company has two classes of common stock, Class A common stock, which was sold to investors in the IPO, and Class B common stock. Pursuant to the Company's certificate of incorporation, each share of Class A common stock is entitled to one vote per share, and the shares of Class A common stock are entitled to 100% of the economic interests in the Company. Each share of Class B common stock has no economic rights in the Company, but entitles its holder to one vote on all matters to be voted on by the Company's stockholders generally. In connection with a reorganization that occurred immediately prior to the IPO, each Existing Owner was issued a number of shares of Class B common stock that was equal to the number of JEH Units that such Existing Owner held. Holders of the Company's Class A common stock and Class B common stock generally vote together as a single class on all matters presented to the Company's stockholders for their vote or approval. Accordingly, the Existing Owners collectively have a number of votes in the Company equal to the aggregate number of JEH Units that they hold. The Existing Owners have the right, pursuant to the terms of an Exchange Agreement by and among the Company, JEH and each of the Existing Owners, to exchange their JEH Units (together with a corresponding number of shares of Class B common stock) for shares of Class A common stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications and other similar transactions. As a result, the Company expects that over time the Company will have an increasing economic interest in JEH as Class B common stock and JEH Units are exchanged for Class A common stock. Moreover, any transfers of JEH Units outside of the Exchange Agreement (other than permitted transfers to affiliates) must be approved by the Company. The Company intends to retain full voting and management control over JEH. Jones Energy, Inc. Condensed Consolidating Balance Sheet December 31, 2015 (in thousands of dollars) JEI(Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash $ $ $ $ $ — $ Restricted Cash — — — — Accounts receivable, net Oil and gas sales — — — — Joint interest owners — — — — Other — — — Commodity derivative assets — — — — Other current assets — — — Intercompany receivable — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Oil and gas properties, net, at cost under the successful efforts method — — — — Other property, plant and equipment, net — — — Commodity derivative assets — — — — Other assets — — — Investment in subsidiaries — — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' Equity Current liabilities Trade accounts payable $ — $ $ $ — $ — $ Oil and gas sales payable — — — — Accrued liabilities — — — Commodity derivative liabilities — — — — Asset retirement obligations — — — — Intercompany payable — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities — ) Long-term debt — — — — Deferred revenue — — — — Asset retirement obligations — — — — Liability under tax receivable agreement — — — — Deferred tax liabilities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' / members' equity Members' equity — ) ) — Class A common stock, $0.001 par value; 30,573,509 shares issued and 30,550,907 shares outstanding — — — — Class B common stock, $0.001 par value; 31,273,130 shares issued and outstanding — — — — Treasury stock, at cost: 22,602 shares ) — — — — ) Additional paid-in-capital — — — — Retained earnings — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' equity ) ) Non-controlling interest — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' equity $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Jones Energy, Inc. Condensed Consolidating Balance Sheet December 31, 2014 (in thousands of dollars) JEI(Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash $ $ $ $ $ — $ Restricted Cash — — — — Accounts receivable, net Oil and gas sales — — — — Joint interest owners — — — — Other — — Commodity derivative assets — — — — Other current assets — — — Intercompany receivable — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Oil and gas properties, net, at cost under the successful efforts method — — — — Other property, plant and equipment, net — — — Commodity derivative assets — — — — Other assets — — — Deferred tax assets — — — — Investment in subsidiaries — — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' Equity Current liabilities Trade accounts payable $ — $ $ $ — $ — $ Oil and gas sales payable — — — — Accrued liabilities — — — Asset retirement obligations — — — — Intercompany payable — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities — ) Long-term debt — — — — Deferred revenue — — — — Commodity derivative liabilities — — — — Asset retirement obligations — — — — Liability under tax receivable agreement — — — — Deferred tax liabilities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' / members' equity Members' equity — ) ) — Class A common stock, $0.001 par value; 12,672,260 shares issued and 12,649,658 shares outstanding — — — — Class B common stock, $0.001 par value; 36,719,499 shares issued and outstanding — — — — Treasury stock, at cost: 22,602 shares ) — — — — ) Additional paid-in-capital — — — — Retained earnings — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' equity ) ) Non-controlling interest — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' equity $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Jones Energy, Inc. Condensed Consolidating Statement of Operations Year Ended December 31, 2015 (in thousands of dollars) JEI (Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Other operating — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) — ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense) Interest expense — ) ) — — ) Net gain on commodity derivatives — — — — Other income (expense) ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense), net ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income tax ) ) — ) Equity interest in income ) — — — — Income tax provision Current — — — — Deferred ) ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Income tax provision (benefit) ) ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to non-controlling interests — — — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to controlling interests $ ) $ — $ — $ — $ — $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Jones Energy, Inc. Condensed Consolidating Statement of Operations Year Ended December 31, 2014 (in thousands of dollars) JEI (Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Other operating — — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) — ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense) Interest expense — ) ) — — ) Net gain on commodity derivatives — — — — Other income (expense) — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense), net — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income tax — ) — Equity interest in income — — — ) — Income tax provision Current — — — — Deferred — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax provision — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to non-controlling interests — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to controlling interests $ $ — $ — $ — $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Jones Energy, Inc. Condensed Consolidating Statement of Operations Year Ended December 31, 2013 (in thousands of dollars) JEI (Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Other operating — — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) — ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense) Interest expense — ) ) — — ) Net gain on commodity derivatives — ) — — — ) Other income (expense) — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense), net — ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income tax — ) ) — Equity interest in income ) — — — — Income tax provision Current — — — — Deferred ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax provision ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to non-controlling interests — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to controlling interests $ ) $ — $ — $ — $ — $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Jones Energy, Inc. Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 (in thousands of dollars) JEI (Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities Net income (loss) $ ) $ $ ) $ ) $ $ ) Adjustments to reconcile net income (loss) to net cash provided by operating activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by operations ) ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities Additions to oil and gas properties — — ) — — ) Proceeds from sales of assets — — — — Acquisition of other property, plant and equipment — — ) — — ) Current period settlements of matured derivative contracts — — — — Change in restricted cash — — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by investing — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities Proceeds from issuance of long-term debt — — — — Repayment under long-term debt — ) — — — ) Proceeds from senior notes — — — — Payment of debt issuance costs — ) — — — ) Proceeds from sale of common stock — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by financing ) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash — ) ) — Cash Beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period $ $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Jones Energy, Inc. Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (in thousands of dollars) JEI (Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities Net income (loss) $ $ $ $ ) $ ) $ Adjustments to reconcile net income (loss) to net cash provided by operating activities ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by operations ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities Additions to oil and gas properties — — ) — — ) Net adjustments to purchase price of properties acquired — — — — Proceeds from sales of assets — — — — Acquisition of other property, plant and equipment — — ) — — ) Current period settlements of matured derivative contracts — ) — — — ) Change in restricted cash — — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by investing — ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities Proceeds from issuance of long-term debt — — — — Repayment under long-term debt — ) — — — ) Proceeds from senior notes — — — — Purchases of treasury stock ) — — — — ) Payment of debt issuance costs — ) — — — ) Net cash (used in) / provided by financing ) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash — ) ) ) — ) Cash Beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period $ $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Jones Energy, Inc. Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2013 (in thousands of dollars) JEI (Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities Net income (loss) $ ) $ ) $ $ ) $ $ Adjustments to reconcile net income (loss) to net cash provided by operating activities ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by operations ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities Investment in subsidiary ) — — — — Additions to oil and gas properties — — ) — — ) Acquisitions of properties — — ) — — ) Proceeds from sales of assets — — — Acquisition of other property, plant and equipment — — ) ) — ) Current period settlements of matured derivative contracts — — — — Change in restricted cash — — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by investing ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities Proceeds from investment in JEI — — — ) — Proceeds from issuance of long-term debt — — — — Repayment under long-term debt — ) — — — ) Proceeds from sale of common stock — — — — Payment of debt issuance costs — ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by financing — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash ) — — Cash Beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period $ $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Significant Accounting Polici23
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). All significant intercompany transactions and balances have been eliminated in consolidation. The financial statements reported for December 31, 2015 and 2014 and the results of the operations and the cash flows for each of the three years in the period ended December 31, 2014 include the Company and all of its subsidiaries. Certain prior period amounts have been reclassified to conform to the current presentation. |
Segment Information | Segment Information The Company operates in one industry segment, which is the exploration, development and production of oil and natural gas, and all of its operations are conducted in one geographic area of the United States. |
Use of Estimates | Use of Estimates In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Changes in estimates are recorded prospectively. Significant assumptions are required in the valuation of proved and unproved oil and natural gas reserves, which affect the Company's estimates of depletion expense, impairment, and the allocation of value in our business combinations. Significant assumptions are also required in the Company's estimates of the net gain or loss on commodity derivative assets and liabilities, fair value associated with business combinations, and asset retirement obligations ("ARO"). |
Cash | Cash Cash and cash equivalents include highly liquid investments with a maturity of three months or less. At times, the amount of cash on deposit in financial institutions exceeds federally insured limits. Management monitors the soundness of the financial institutions it does business with, and believes the Company's risk is not significant. |
Accounts Receivable | Accounts Receivable Accounts receivable—Oil and gas sales consist of uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 to 60 days of production. Accounts receivable—Joint interest owners consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date. Accounts receivable—Other consists at December 31, 2015 and at December 31, 2014 of derivative positions not settled as of the balance sheet date and severance tax refunds due from state agencies. No interest is charged on past-due balances. The Company routinely assesses the recoverability of all material trade, joint interest and other receivables to determine their collectability, and reduces the carrying amounts by a valuation allowance that reflects management's best estimate of the amounts that may not be collected. As of December 31, 2015 and 2014, the Company did not have significant allowances for doubtful accounts. |
Concentration of Risk | Concentration of Risk Substantially all of the Company's accounts receivable are related to the oil and gas industry. This concentration of entities may affect the Company's overall credit risk in that these entities may be affected similarly by changes in economic and other conditions, including declines in commodity prices. As of December 31, 2015, 68% of Accounts receivable—Oil and gas sales are due from four purchasers and 80% of Accounts receivable—Joint interest owners are due from five working interest owners. As of December 31, 2014, 70% of Accounts receivable—Oil and gas sales were due from five purchasers and 67% of Accounts receivable—Joint interest owners were due from five working interest owners. As of December 31, 2013, 79% of Accounts receivable—Oil and gas sales were due from eight purchasers and 77% of Accounts receivable—Joint interest owners were due from five working interest owners. If any or all of these significant counterparties were to fail to pay amounts due to the Company, the Company's financial position and results of operations could be materially and adversely affected. |
Dependence on Major Customers | Dependence on Major Customers The Company maintains a portfolio of crude oil and natural gas marketing contracts with large, established refiners and oil and gas purchasers. During the year ended December 31, 2015, the largest purchasers were Valero Energy Corp. ("Valero"), ETC Field Services LLC, Plains Marketing LP ("Plains Marketing"), NGL Energy Partners LP, and Unimark LLC, which accounted for approximately 18%, 17%, 16%, 15% and 7% of consolidated oil and gas sales, respectively. During the year ended December 31, 2014, the largest purchasers were Valero Energy Corp. ("Valero"), NGL Energy Partners LP, PVR Midstream LLC ("PVR Midstream"), Plains Marketing LP ("Plains Marketing"), and Monarch Natural Gas LLC which accounted for approximately 22%, 12%, 12%, 10% and 10% of consolidated oil and gas sales, respectively. During the year ended December 31, 2013, the largest purchasers were PVR Midstream, Unimark LLC, Mercuria Energy Group Ltd. ("Mercuria"), Valero, and Plains Marketing, which accounted for approximately 15%, 13%, 13%, 13% and 6% of consolidated oil and gas sales, respectively. Management believes that there are alternative purchasers and that it may be necessary to establish relationships with such new purchasers. However, there can be no assurance that the Company can establish such relationships and that those relationships will result in an increased number of purchasers. Although the Company is exposed to a concentration of credit risk, management believes that all of the Company's purchasers are credit worthy. |
Dependence on Suppliers | Dependence on Suppliers The Company's industry is cyclical, and from time to time, there can be an imbalance between the supply of and demand for drilling rigs, equipment, services, supplies and qualified personnel. During periods of oversupply, there can be financial pressure on suppliers. If the financial pressure leads to work interruptions or stoppages, the Company could be materially and adversely affected. Management believes that there are adequate alternative providers of drilling and completion services although it may become necessary to establish relationships with new contractors. However, there can be no assurance that the Company can establish such relationships and that those relationships will result in increased availability of drilling rigs or other services, or that they could be obtained on the same terms. |
Oil and Gas Properties | Oil and Gas Properties The Company accounts for its oil and natural gas exploration and production activities under the successful efforts method of accounting. Costs to acquire mineral interests in oil and natural gas properties are capitalized. Costs to drill and equip development wells and the related asset retirement costs are capitalized. The costs to drill and equip exploratory wells are capitalized pending determination of whether the Company has discovered proved commercial reserves. If proved commercial reserves are not discovered, such drilling costs are charged to expense. In some circumstances, it may be uncertain whether proved commercial reserves have been found when drilling has been completed. Such exploratory well drilling costs may continue to be capitalized if the anticipated reserve quantity is sufficient to justify its completion as a producing well and sufficient progress in assessing the reserves and the economic and operating viability of the project is being made. The Company capitalizes interest on expenditures for significant exploration and development projects that last more than six months while activities are in progress to bring the assets to their intended use. On the sale or retirement of a proved field, the cost and related accumulated depletion, depreciation and amortization are eliminated from the field accounts, and the resultant gain or loss is recognized. Capitalized amounts attributable to proved oil and gas properties are depleted by the unit-of-production method over the life of proved reserves, using the unit conversion ratio of six thousand cubic feet of gas to one barrel of oil equivalent. Depletion of the costs of wells and related equipment and facilities, including capitalized asset retirement costs, net of salvage values, is computed using proved developed reserves. The reserve base used to calculate depreciation, depletion, and amortization for leasehold acquisition costs and the cost to acquire proved properties is the sum of proved developed reserves and proved undeveloped reserves. The Company reviews its proved oil and natural gas properties, including related wells and equipment, for impairment by comparing expected undiscounted future cash flows at a producing field level to the net capitalized cost of the asset. If the future undiscounted cash flows, based on the Company's estimate of future commodity prices, operating costs, and production, are lower than the net capitalized cost, the capitalized cost is reduced to fair value. Fair value is calculated by discounting the future cash flows at an appropriate risk- adjusted discount rate. Due to the significant assumptions associated with the inputs and calculations described, the fair value of oil and gas properties used in estimating impairment represents a nonrecurring Level 3 measurement. The Company evaluates its unproved properties for impairment on a property-by-property basis. The Company's unproved property consists of acquisition costs related to its undeveloped acreage. The Company reviews the unproved property for indicators of impairment based on the Company's current exploration plans with consideration given to results of any drilling and seismic activity during the period and known information regarding exploration and development activity by other companies on adjacent blocks. On the sale of an entire interest in an unproved property, gain or loss on the sale is recognized, taking into consideration the amount of any recorded impairment if the property had been assessed individually. If a partial interest in an unproved property is sold, the amount received is treated as a reduction of the cost of the interest retained. |
Other Property, Plant and Equipment | Other Property, Plant and Equipment Other property, plant and equipment is depreciated on a straight-line basis over the estimated useful lives of the property, plant and equipment, which range from three years to ten years. |
Oil and Gas Sales Payable | Oil and Gas Sales Payable Oil and gas sales payable represents amounts collected from purchasers for oil and gas sales, which are due to other revenue interest owners. Generally, the Company is required to remit amounts due under these liabilities within 60 days of receipt. |
Commodity Derivatives | Commodity Derivatives The Company records its commodity derivative instruments on the Consolidated Balance Sheet as either an asset or liability measured at its fair value. Changes in the derivative's fair value are recognized currently in earnings, unless specific hedge accounting criteria are met. During the years ended December 31, 2015, 2014 and 2013, the Company elected not to designate any of its commodity price risk management activities as cash flow or fair value hedges. The changes in the fair values of outstanding financial instruments are recognized as gains or losses in the period of change. Although the Company does not designate its commodity derivative instruments as cash-flow hedges, management uses those instruments to reduce the Company's exposure to fluctuations in commodity prices related to its natural gas and oil production. Net gains and losses, at fair value, are included on the Consolidated Balance Sheet as current or noncurrent assets or liabilities based on the anticipated timing of cash settlements under the related contracts. Changes in the fair value of commodity derivative contracts are recorded in earnings as they occur and are included in other income (expense) on the Consolidated Statement of Operations. See Note 7, "Fair Value Measurement," for disclosure about the fair values of commodity derivative instruments. |
Asset Retirement Obligations | Asset Retirement Obligations The Company's asset retirement obligations ("ARO") consist of future plugging and abandonment expenses on oil and natural gas properties. The Company estimates an ARO for each well in the period in which it is incurred based on estimated present value of plugging and abandonment costs, increased by an inflation factor to the estimated date that the well would be plugged. The resulting liability is recorded by increasing the carrying amount of the related long- lived asset. The liability is then accreted to its then-present value each period and the capitalized cost is depleted over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. The ARO is classified as current or noncurrent based on the expect timing of payments. |
Revenue Recognition | Revenue Recognition Revenues from the sale of crude oil, natural gas, and natural gas liquids are valued at the estimated sales price and recognized when the product is delivered at a fixed or determinable price, title has transferred, collectability is reasonably assured and evidenced by a contract. The Company follows the "sales method" of accounting for its oil and natural gas revenue, so it recognizes revenue on all crude oil, natural gas, and natural gas liquids sold to purchasers. A receivable or liability is recognized only to the extent that the Company has an imbalance on a specific property greater than the expected remaining proved reserves. Any such imbalances were not significant as of December 31, 2015. |
Income Taxes | Income Taxes Following its IPO on July 29, 2013, the Company began recording a federal and state income tax liability associated with its status as a corporation. No provision for federal income taxes was recorded prior to the IPO because the taxable income or loss was includable in the income tax returns of the individual partners and members. The Company is also subject to state income taxes. The State of Texas includes in its tax system a franchise tax applicable to the Company and an accrual for franchise taxes is included in the financial statements when appropriate. Income taxes are accounted for under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to be recovered or settled pursuant to the provisions of ASC 740—Income Taxes. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records a valuation allowance if it is deemed more likely than not that all or a portion of its deferred income tax assets will not be realized. In addition, income tax rules and regulations are subject to interpretation and the application of those rules and regulations require judgment by the Company and may be challenged by the taxation authorities. The Company follows a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. Only tax positions that meet the more likely than not recognition threshold are recognized. The Company's policy is to include any interest and penalties recorded on uncertain tax positions as a component of income tax expense. The Company's unrecognized tax benefits or related interest and penalties are immaterial. |
Comprehensive Income | Comprehensive Income The Company has no elements of comprehensive income other than net income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers," which creates a new topic in the ASC, topic 606, "Revenue from Contracts with Customers." This ASU sets forth a five-step model for determining when and how revenue is recognized. Under the model, an entity will be required to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Additional disclosures will be required to describe the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year. The amendments are now effective for interim and annual reporting periods beginning after December 15, 2017 and may be applied on either a full or modified retrospective basis. Early adoption is permitted. We are currently evaluating the effect that the adoption of Update 2014-09 and Update 2015-14 will have on our financial statements. In January 2015, the FASB issued ASU No. 2015- 01, Income Statement—Extraordinary and Unusual Items. This ASU removes the concept of extraordinary items from GAAP. Under existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is of an unusual nature and occurs infrequently. This separate, net-of-tax presentation will no longer be allowed. The amendments are effective for interim and annual reporting periods beginning after December 15, 2015. The Company does not expect the adoption of this guidance to have a material impact on its financial position, cash flows or results of operations. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Entities that have historically presented debt issuance costs as an asset, related to a recognized debt liability, will be required to present those costs as a direct deduction from the carrying amount of that debt liability. The ASU does not change the recognition, measurement, or subsequent measurement guidance for debt issuance costs. Adoption of this ASU will be applied retrospectively. In August 2015, the FASB issued ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30) ("Update 2015-15"), which addresses the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements, given the absence of authoritative guidance within Update 2015-03 for debt issuance costs related to line-of-credit arrangements. The amendments are effective for interim and annual reporting periods beginning after December 15, 2015. The Company does not expect the adoption of this guidance to have a material impact on its financial position, cash flows or results of operations. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The guidance is effective for financial statements issued for annual periods beginning after 15 December 2016, and interim periods within those annual periods. Early adoption is permitted. The guidance may be adopted on either a prospective or retrospective basis. The Company has chosen to early adopt ASU No. 2015-17 for the period ended December 31, 2015. Changes to the balance sheet have been applied on a retrospective basis. Adoption did not have a material impact on the financial position, cash flows or results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in this update require, among other things, that lessees recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The amendments are effective for interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the impacts of the amendments to our financial statements and accounting practices for leases. |
Organization and Description 24
Organization and Description of Business (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Description of Business | |
Revised Consolidated Balance Sheet and Consolidated Statements of Operations | Consolidated Balance Sheet: December 31, 2014 December 31, 2014 Production tax Exchange of Class B shares (in thousands of dollars) As Reported As Revised Accounts Receivable, Oil and gas sales $ $ — $ Deferred tax liabilities $ (1) $ — $ Additional paid in capital $ — $ $ Retained earnings $ $ — $ Non-controlling interest $ $ $ ) $ (1) Certain prior period amounts have been reclassified to conform to the current presentation. Consolidated Statements of Operations—for the twelve months ended: December 31, 2014 December 31, 2014 Production tax (in thousands except per share data) As Reported As Revised Production and ad valorem taxes $ (1) $ ) $ Income tax provision (benefit) $ $ $ Net income (loss) $ $ $ Net income (loss) attributable to non-controlling interests $ $ $ Net income (loss) attributable to controlling interests $ $ $ Earnings (Loss) per share: Basic $ $ $ Diluted $ $ $ (1) Certain prior period amounts have been reclassified to conform to the current presentation. |
Properties, Plant and Equipme25
Properties, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Properties, Plant and Equipment | |
Schedule of oil and gas properties | (in thousands of dollars) 2015 2014 Mineral interests in properties Unproved $ $ Proved Wells and equipment and related facilities ​ ​ ​ ​ ​ ​ ​ ​ Less: Accumulated depletion and impairment ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net oil and gas properties $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of other property, plant and equipment | (in thousands of dollars) 2015 2014 Leasehold improvements $ $ Furniture, fixtures, computers and software Vehicles Aircraft Other ​ ​ ​ ​ ​ ​ ​ ​ Less: Accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net other property, plant and equipment $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Acquisition of Properties (Tabl
Acquisition of Properties (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisition of Properties | |
Schedule of purchase price allocation | (in thousands of dollars) Oil and gas properties Unproved $ Proved Asset retirement obligations ) ​ ​ ​ ​ ​ Total purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of unaudited pro forma results of operations | Year Ended December 31, 2013 Post Acquisition(1) (in thousands of dollars) Pro Forma (unaudited) (unaudited) Total operating revenue $ $ Total operating expenses Operating income Net income (1) Represents revenues and expenses for the post acquisition period of December 18, 2013 to December 31, 2013 included in the Consolidated Statement of Operations. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt | |
Summary of long-term debt | (in thousands of dollars) December 31, 2015 December 31, 2014 Revolver $ $ 2022 Notes 2023 Notes — ​ ​ ​ ​ ​ ​ ​ ​ Total principal amount Less: unamortized discount ) — ​ ​ ​ ​ ​ ​ ​ ​ Total carrying amount $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Derivative Instruments and He28
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities | |
Schedule of various commodity derivatives in place to offset uncertain price fluctuations that could affect the entity's future operations | December 31, 2015 Low High Weighted Average Final Expiration Oil swaps Exercise price $ $ $ Barrels per month June 2019 Natural gas swaps Exercise price $ $ $ mmbtu per month June 2019 Basis swaps Contract differential $ ) $ ) $ ) mmbtu per month December 2016 Natural gas liquids swaps Exercise price $ $ $ Barrels per month December 2017 December 31, 2014 Low High Weighted Average Final Expiration Oil swaps Exercise price $ $ $ Barrels per month December 2018 Natural gas swaps Exercise price $ $ $ mmbtu per month December 2018 Basis swaps Contract differential $ ) $ ) $ ) mmbtu per month March 2016 Natural gas liquids swaps Exercise price $ $ $ Barrels per month December 2017 |
Schedule of commodity derivative contracts, assets, netted on the Consolidated Balance Sheet | (in thousands of dollars) Gross Amounts of Recognized Assets / Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Assets / Liabilities Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet Net Amount December 31, 2015 Commodity derivative contracts Assets $ $ ) $ $ — $ Liabilities ) ) — ) December 31, 2014 Commodity derivative contracts Assets $ $ ) $ $ — $ Liabilities ) ) — ) |
Schedule of commodity derivative contracts, liabilities, netted on the Consolidated Balance Sheet | (in thousands of dollars) Gross Amounts of Recognized Assets / Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Assets / Liabilities Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet Net Amount December 31, 2015 Commodity derivative contracts Assets $ $ ) $ $ — $ Liabilities ) ) — ) December 31, 2014 Commodity derivative contracts Assets $ $ ) $ $ — $ Liabilities ) ) — ) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurement | |
Schedule of financial instruments carried at fair value | December 31, 2015 Fair Value Measurements Using (in thousands of dollars) (Level 1) (Level 2) (Level 3) Total Commodity Price Hedges Current assets $ — $ $ $ Long-term assets — — Current liabilities — — Long-term liabilities — — — — December 31, 2014 Fair Value Measurements Using (in thousands of dollars) (Level 1) (Level 2) (Level 3) Total Commodity Price Hedges Current assets $ — $ $ $ Long-term assets — Current liabilities — — — — Long-term liabilities — — |
Schedule of quantitative information about Level 3 inputs used in the fair value measurement, assets | Quantitative Information About Level 3 Fair Value Measurements Commodity Price Hedges Fair Value (000's) Valuation Technique Unobservable Input Range Natural gas liquid swaps $ Use a discounted cash flow approach using inputs including forward price statements from counterparties Natural gas liquid futures $8.90 - $47.25 per barrel |
Schedule of changes in fair value of Level 3 financial instruments | (in thousands of dollars) Balance at December 31, 2013, net $ ) Purchases Settlements Transfers into Level 3 ) Transfers to Level 2 Changes in fair value ​ ​ ​ ​ ​ Balance at December 31, 2014, net Purchases Settlements ) Transfers into Level 3 — Transfers to Level 2 ) Changes in fair value ​ ​ ​ ​ ​ Balance at December 31, 2015, net $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of fair value of financial instruments that are not recorded at fair value in the consolidated financial statements | December 31, 2015 December 31, 2014 (in thousands of dollars) Principal Amount Fair Value Principal Amount Fair Value Debt: Revolver $ $ $ $ 2022 Notes 2023 Notes — — |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligations | |
Summary of the Company's ARO | (in thousands of dollars) 2015 2014 ARO liability at beginning of year $ $ Liabilities incurred(1) Accretion of ARO liability Liabilities settled due to sale of related properties ) ) Liabilities settled due to plugging and abandonment ) ) Change in estimate ​ ​ ​ ​ ​ ​ ​ ​ ARO liability at end of year Less: Current portion of ARO at end of year ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total long-term ARO at end of year $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes $4.7 million to correct immaterial errors originating in 2013 and 2014. In addition to the balance sheet impact noted, Accretion of ARO liability of $0.2 million and Depletion, depreciation, and amortization of $0.6 million were recognized in our statement of operations during the fourth quarter of 2015 as a correcting adjustment. We have determined that this adjustment is not material to the consolidated financial statements of any period presented. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-based Compensation | |
Schedule of assumptions used for the Monte Carlo simulation model to determine the grant date fair value and associated compensation expense | 2015 Performance Unit Awards 2014 Performance Unit Awards Stock Price(1) $ $ Beginning Average Stock Price(2) $ $ Expected Volatility(3) % % Risk-Free Rate of Return(4) % % (1) Based on the closing price of Jones Energy, Inc. Class A common stock on April 29, 2015 and May 20, 2014. (2) Based on the 10 trading days immediately prior to the beginning of the performance period. (3) For the 2015 award this is based on the average historical volatilities over the most recent 2.67-year period for the Company and each peer company using daily stock prices through April 29, 2015. The measurement period reflects the 2.67 years remaining in the performance period as of the grant date. For the 2014 award this is based on the average historical volatilities over the most recent 2.62-year period for the Company and each peer company using daily stock prices through May 20, 2014. The measurement period reflects the 2.62 years remaining in the performance period as of the grant date. (4) Based on the yield curve of U.S. Treasury rates as of April 29, 2015 and May 20, 2014. |
Management Unit Awards | |
Stock-based Compensation | |
Summary of information related to the Units/shares or awards | JEH Units Weighted Average Grant Date Fair Value per Share Unvested at December 31, 2014 $ Granted $ Forfeited ) $ Vested ) $ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Restricted Stock Unit Awards | |
Stock-based Compensation | |
Summary of information related to the Units/shares or awards | Restricted Stock Unit Awards Weighted Average Grant Date Fair Value per Share Unvested at December 31, 2014 $ Granted $ Forfeited ) $ Vested ) $ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Performance Unit Awards | |
Stock-based Compensation | |
Summary of information related to the Units/shares or awards | Performance Unit Awards Weighted Average Grant Date Fair Value per Share Unvested at December 31, 2014 $ Granted $ Forfeited — — Vested ) $ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Restricted Stock Awards | |
Stock-based Compensation | |
Summary of information related to the Units/shares or awards | Restricted Stock Awards Weighted Average Grant Date Fair Value per Share Unvested at December 31, 2014 $ Granted $ Forfeited — — Vested ) $ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Schedule of income tax provision | Year Ended December 31, (in thousands of dollars) 2015 2014 2013 Current tax expense: Federal $ — $ $ State — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax expense (benefit): Federal ) ) State ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred expense (benefit) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total tax expense (benefit) ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax expense (benefit) attributable to controlling interests ) $ ) Tax expense attributable to non-controlling interests ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax expense (benefit) ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of reconciliation of the Company's provision for income taxes as reported and the amount computed by multiplying income before taxes, less non-controlling interest, by the U.S. federal statutory rate | (in thousands of dollars) 2015 2014 2013 Provision calculated at federal statutory income tax rate: Net income before taxes $ ) $ $ Statutory rate % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense (benefit) computed at statutory rate $ ) $ $ Less: Non-controlling interests ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense (benefit) attributable to controlling interests ) ) State and local income taxes, net of federal benefit ) ) Reduction of TRA liability ) — — Equity compensation, shortfall — — Change in enacted rate ) — — Change in valuation allowance — — Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax expense (benefit) attributable to controlling interests ) ) Tax expense attributable to non-controlling interests ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax expense (benefit)(1) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Deferred tax expense of the year ended December 31, 2015 includes the correction of an immaterial error from the year ended December 31, 2014, whereby deferred tax expense was overstated in 2014 and understated in 2015 by $0.9 million. We have determined that this adjustment is not material to the consolidated financial statements of any period presented. |
Schedule of significant components of the Company's deferred tax assets and deferred tax liability | As of December 31, (in thousands of dollars) 2015 2014 Deferred tax assets Net operating loss $ $ Section 754 election tax basis adjustment Alternative minimum tax credits — Other deferred tax asset ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities Investment in consolidated subsidiary JEH Noncurrent state deferred tax liability ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets (liabilities) ) ) Valuation allowance ) — ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets (liabilities) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings per Share | |
Schedule of calculation of the basic and diluted weighted-average shares and EPS | (in thousands, except per share data) 2015 2014 2013 Income (numerator): Net income (loss) attributable to controlling interests $ ) $ $ ) Weighted-average shares (denominator): Weighted-average number of shares of Class A common stock—basic Weighted-average number of shares of Class A common stock—diluted Earnings (loss) per share: Basic $ ) $ $ ) Diluted $ ) $ $ ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | |
Schedule of future minimum payments for noncancellable operating leases extending beyond one year | (in thousands of dollars) Years Ending December 31, 2016 $ 2017 2018 2019 2020 Thereafter — ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Subsidiary Guarantors (Tables)
Subsidiary Guarantors (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Subsidiary Guarantors | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet December 31, 2015 (in thousands of dollars) JEI(Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash $ $ $ $ $ — $ Restricted Cash — — — — Accounts receivable, net Oil and gas sales — — — — Joint interest owners — — — — Other — — — Commodity derivative assets — — — — Other current assets — — — Intercompany receivable — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Oil and gas properties, net, at cost under the successful efforts method — — — — Other property, plant and equipment, net — — — Commodity derivative assets — — — — Other assets — — — Investment in subsidiaries — — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' Equity Current liabilities Trade accounts payable $ — $ $ $ — $ — $ Oil and gas sales payable — — — — Accrued liabilities — — — Commodity derivative liabilities — — — — Asset retirement obligations — — — — Intercompany payable — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities — ) Long-term debt — — — — Deferred revenue — — — — Asset retirement obligations — — — — Liability under tax receivable agreement — — — — Deferred tax liabilities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' / members' equity Members' equity — ) ) — Class A common stock, $0.001 par value; 30,573,509 shares issued and 30,550,907 shares outstanding — — — — Class B common stock, $0.001 par value; 31,273,130 shares issued and outstanding — — — — Treasury stock, at cost: 22,602 shares ) — — — — ) Additional paid-in-capital — — — — Retained earnings — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' equity ) ) Non-controlling interest — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' equity $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Balance Sheet December 31, 2014 (in thousands of dollars) JEI(Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash $ $ $ $ $ — $ Restricted Cash — — — — Accounts receivable, net Oil and gas sales — — — — Joint interest owners — — — — Other — — Commodity derivative assets — — — — Other current assets — — — Intercompany receivable — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Oil and gas properties, net, at cost under the successful efforts method — — — — Other property, plant and equipment, net — — — Commodity derivative assets — — — — Other assets — — — Deferred tax assets — — — — Investment in subsidiaries — — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' Equity Current liabilities Trade accounts payable $ — $ $ $ — $ — $ Oil and gas sales payable — — — — Accrued liabilities — — — Asset retirement obligations — — — — Intercompany payable — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities — ) Long-term debt — — — — Deferred revenue — — — — Commodity derivative liabilities — — — — Asset retirement obligations — — — — Liability under tax receivable agreement — — — — Deferred tax liabilities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' / members' equity Members' equity — ) ) — Class A common stock, $0.001 par value; 12,672,260 shares issued and 12,649,658 shares outstanding — — — — Class B common stock, $0.001 par value; 36,719,499 shares issued and outstanding — — — — Treasury stock, at cost: 22,602 shares ) — — — — ) Additional paid-in-capital — — — — Retained earnings — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' equity ) ) Non-controlling interest — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' equity $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations Year Ended December 31, 2015 (in thousands of dollars) JEI (Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Other operating — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) — ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense) Interest expense — ) ) — — ) Net gain on commodity derivatives — — — — Other income (expense) ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense), net ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income tax ) ) — ) Equity interest in income ) — — — — Income tax provision Current — — — — Deferred ) ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Income tax provision (benefit) ) ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to non-controlling interests — — — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to controlling interests $ ) $ — $ — $ — $ — $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Operations Year Ended December 31, 2014 (in thousands of dollars) JEI (Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Other operating — — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) — ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense) Interest expense — ) ) — — ) Net gain on commodity derivatives — — — — Other income (expense) — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense), net — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income tax — ) — Equity interest in income — — — ) — Income tax provision Current — — — — Deferred — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax provision — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to non-controlling interests — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to controlling interests $ $ — $ — $ — $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Operations Year Ended December 31, 2013 (in thousands of dollars) JEI (Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Other operating — — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) — ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense) Interest expense — ) ) — — ) Net gain on commodity derivatives — ) — — — ) Other income (expense) — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense), net — ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income tax — ) ) — Equity interest in income ) — — — — Income tax provision Current — — — — Deferred ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax provision ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to non-controlling interests — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to controlling interests $ ) $ — $ — $ — $ — $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Condensed Consolidating Statement of Cash Flows | [ Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 (in thousands of dollars) JEI (Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities Net income (loss) $ ) $ $ ) $ ) $ $ ) Adjustments to reconcile net income (loss) to net cash provided by operating activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by operations ) ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities Additions to oil and gas properties — — ) — — ) Proceeds from sales of assets — — — — Acquisition of other property, plant and equipment — — ) — — ) Current period settlements of matured derivative contracts — — — — Change in restricted cash — — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by investing — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities Proceeds from issuance of long-term debt — — — — Repayment under long-term debt — ) — — — ) Proceeds from senior notes — — — — Payment of debt issuance costs — ) — — — ) Proceeds from sale of common stock — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by financing ) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash — ) ) — Cash Beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period $ $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (in thousands of dollars) JEI (Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities Net income (loss) $ $ $ $ ) $ ) $ Adjustments to reconcile net income (loss) to net cash provided by operating activities ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by operations ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities Additions to oil and gas properties — — ) — — ) Net adjustments to purchase price of properties acquired — — — — Proceeds from sales of assets — — — — Acquisition of other property, plant and equipment — — ) — — ) Current period settlements of matured derivative contracts — ) — — — ) Change in restricted cash — — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by investing — ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities Proceeds from issuance of long-term debt — — — — Repayment under long-term debt — ) — — — ) Proceeds from senior notes — — — — Purchases of treasury stock ) — — — — ) Payment of debt issuance costs — ) — — — ) Net cash (used in) / provided by financing ) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash — ) ) ) — ) Cash Beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period $ $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2013 (in thousands of dollars) JEI (Parent) Issuers Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities Net income (loss) $ ) $ ) $ $ ) $ $ Adjustments to reconcile net income (loss) to net cash provided by operating activities ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by operations ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities Investment in subsidiary ) — — — — Additions to oil and gas properties — — ) — — ) Acquisitions of properties — — ) — — ) Proceeds from sales of assets — — — Acquisition of other property, plant and equipment — — ) ) — ) Current period settlements of matured derivative contracts — — — — Change in restricted cash — — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by investing ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities Proceeds from investment in JEI — — — ) — Proceeds from issuance of long-term debt — — — — Repayment under long-term debt — ) — — — ) Proceeds from sale of common stock — — — — Payment of debt issuance costs — ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash (used in) / provided by financing — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash ) — — Cash Beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period $ $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Organization and Description 36
Organization and Description of Business - Organization (Details) | Jul. 29, 2013Voteclass | Dec. 31, 2015class | Feb. 29, 2016 |
Organization | |||
Classes of stock, number | class | 2 | 2 | |
JEH | Existing Owners | |||
Organization | |||
The Existing Owners' economic interest in JEH (as a percent) | 74.70% | 50.60% | 50.60% |
Class A common stock | Existing Owners | |||
Organization | |||
Ratio in which JEH Units and Class B common stock are exchanged for Class A common stock | 1 | 1 | |
Class B common stock | |||
Organization | |||
Number of votes for each holder of common stock | Vote | 1 |
Organization and Description 37
Organization and Description of Business - Revision of Previously Issued Financial Statements - Production Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revision of Previously Issued Financial Statements | |||
Net cash provided by operations | $ 69,030 | $ 265,423 | $ 148,573 |
Adjustment | Production tax | |||
Revision of Previously Issued Financial Statements | |||
Net cash provided by operations | $ 0 |
Organization and Description 38
Organization and Description of Business - Revision of Previously Issued Financial Statements - Exchange of Class B Shares (Details) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Class A common stock | ||
Revision of Previously Issued Financial Statements | ||
Common Stock, shares outstanding | 30,550,907 | 12,649,658 |
Class A common stock | Adjustment | Exchange of Class B shares | ||
Revision of Previously Issued Financial Statements | ||
Common Stock, shares outstanding | 0 | |
Class B common stock | ||
Revision of Previously Issued Financial Statements | ||
Common Stock, shares outstanding | 31,273,130 | 36,719,499 |
Class B common stock | Adjustment | Exchange of Class B shares | ||
Revision of Previously Issued Financial Statements | ||
Common Stock, shares outstanding | 0 |
Organization and Description 39
Organization and Description of Business - Revision of Previously Issued Financial Statements - Consolidated Balance Sheet - Tabular Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revision of Previously Issued Financial Statements | ||
Accounts Receivable, Oil and gas sales | $ 19,292 | $ 51,482 |
Deferred tax liabilities | 22,972 | 27,474 |
Additional paid-in-capital | 363,723 | 178,763 |
Retained earnings | 36,569 | 38,950 |
Non-controlling interest | $ 536,856 | 635,945 |
As Reported | ||
Revision of Previously Issued Financial Statements | ||
Accounts Receivable, Oil and gas sales | 49,861 | |
Deferred tax liabilities | 27,330 | |
Additional paid-in-capital | 177,133 | |
Retained earnings | 38,682 | |
Non-controlling interest | 636,366 | |
Adjustment | Production tax | ||
Revision of Previously Issued Financial Statements | ||
Accounts Receivable, Oil and gas sales | 1,621 | |
Deferred tax liabilities | 144 | |
Retained earnings | 268 | |
Non-controlling interest | 1,209 | |
Adjustment | Exchange of Class B shares | ||
Revision of Previously Issued Financial Statements | ||
Additional paid-in-capital | 1,630 | |
Non-controlling interest | $ (1,630) |
Organization and Description 40
Organization and Description of Business - Revision of Previously Issued Financial Statements - Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization and Description of Business | |||
Production and ad valorem taxes | $ 12,130 | $ 22,556 | $ 15,517 |
Income tax provision (benefit) | (2,781) | 26,218 | (71) |
Net income (loss) | (9,077) | 225,620 | 22,405 |
Net income (loss) attributable to non-controlling interests | (6,696) | 184,484 | 24,591 |
Net income (loss) attributable to controlling interests | $ (2,381) | $ 41,136 | $ (2,186) |
Earnings (Loss) per share: | |||
Basic earnings (loss) per share (in dollars per share) | $ (0.09) | $ 3.28 | $ (0.17) |
Diluted earnings (loss) per share (in dollars per share) | $ (0.09) | $ 3.28 | $ (0.17) |
Significant Accounting Polici41
Significant Accounting Policies - Segment Information (Details) | 12 Months Ended |
Dec. 31, 2015segmentarea | |
Segment Information | |
Number of industry segments | segment | 1 |
Number of Geographic Areas in which Entity Operates | area | 1 |
Significant Accounting Polici42
Significant Accounting Policies - Accounts Receivable (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Accounts Receivable | |
Payment period of oil and gas sales, minimum | 30 days |
Payment period of oil and gas sales, maximum | 60 days |
Period within which joint interest owner obligations becomes due | 30 days |
Interest charged on past-due balances | $ 0 |
Significant Accounting Polici43
Significant Accounting Policies - Concentration of Risk (Details) - Credit risk | 12 Months Ended | ||
Dec. 31, 2015customerOwner | Dec. 31, 2014customerOwner | Dec. 31, 2013customerOwner | |
Accounts receivable - Oil and gas sales | |||
Concentration of Risk | |||
Concentration risk (as a percent) | 68.00% | 70.00% | 79.00% |
Number of customers | customer | 4 | 5 | 8 |
Accounts receivable - Joint interest owners | |||
Concentration of Risk | |||
Concentration risk (as a percent) | 80.00% | 67.00% | 77.00% |
Number of customers | Owner | 5 | 5 | 5 |
Significant Accounting Polici44
Significant Accounting Policies - Dependence on Major Customers (Details) - Oil and gas sales - Customer concentration | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valero Energy Corp. | |||
Dependence on Major Customers | |||
Concentration risk (as a percent) | 18.00% | 22.00% | 13.00% |
ETC Field Services LLC | |||
Dependence on Major Customers | |||
Concentration risk (as a percent) | 17.00% | ||
NGL Energy Partners LP | |||
Dependence on Major Customers | |||
Concentration risk (as a percent) | 15.00% | 12.00% | |
PVR Midstream | |||
Dependence on Major Customers | |||
Concentration risk (as a percent) | 12.00% | 15.00% | |
Plains Marketing | |||
Dependence on Major Customers | |||
Concentration risk (as a percent) | 16.00% | 10.00% | 6.00% |
Monarch Natural Gas, LLC | |||
Dependence on Major Customers | |||
Concentration risk (as a percent) | 10.00% | ||
Unimark LLC | |||
Dependence on Major Customers | |||
Concentration risk (as a percent) | 7.00% | 13.00% | |
Mercuria | |||
Dependence on Major Customers | |||
Concentration risk (as a percent) | 13.00% |
Significant Accounting Polici45
Significant Accounting Policies - Oil and Gas Properties (Details) | 12 Months Ended |
Dec. 31, 2015ft³ / Boe | |
Oil and Gas Properties | |
Minimum project period for capitalization of interest on expenditures | 6 months |
Unit conversion ratio | 6,000 |
Significant Accounting Polici46
Significant Accounting Policies - Other Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Other Property, Plant and Equipment | |
Estimated useful lives | 3 years |
Maximum | |
Other Property, Plant and Equipment | |
Estimated useful lives | 10 years |
Significant Accounting Polici47
Significant Accounting Policies - Oil and Gas Sales Payable (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies | |
Period of remittance for oil and gas sales payable | 60 days |
Properties, Plant and Equipme48
Properties, Plant and Equipment - Oil and Gas Properties - Tabular Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Mineral interests in properties | ||
Unproved | $ 75,308 | $ 94,526 |
Proved | 1,031,669 | 1,001,194 |
Wells and equipment and related facilities | 1,289,323 | 1,094,202 |
Gross oil and gas properties | 2,396,300 | 2,189,922 |
Less: Accumulated depletion and impairment | (760,534) | (551,062) |
Net oil and gas properties | $ 1,635,766 | $ 1,638,860 |
Properties, Plant and Equipme49
Properties, Plant and Equipment - Oil and Gas Properties - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Oil and Gas Properties | |||
Costs capitalized in connection with exploratory wells | $ 0 | ||
Amount of capitalized interest on expenditures | 0 | $ 0.1 | |
Depletion of oil and gas properties | 204.2 | 180.6 | $ 113.3 |
Impairments of proved or unproved oil and gas properties | $ 0 | $ 0 | $ 0 |
Properties, Plant and Equipme50
Properties, Plant and Equipment - Oil and Gas Properties - Reclassification (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Oil and Gas Property [Abstract] | |||
Impairment of oil and gas properties | $ 0 | $ 0 | $ 0 |
Exploration | $ 6,551 | $ 3,453 | 16,125 |
Adjustment | Reclassification for lease abandonment charges | |||
Oil and Gas Property [Abstract] | |||
Impairment of oil and gas properties | (14,400) | ||
Exploration | $ 14,400 |
Properties, Plant and Equipme51
Properties, Plant and Equipment - Other Property, Plant and Equipment - Tabular Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Property, Plant and Equipment | ||
Gross other property, plant and equipment | $ 8,044 | $ 7,062 |
Less: Accumulated depreciation and amortization | (4,171) | (3,014) |
Net other property, plant and equipment | 3,873 | 4,048 |
Leasehold improvements | ||
Other Property, Plant and Equipment | ||
Gross other property, plant and equipment | 1,260 | 1,218 |
Furniture, fixtures, computers and software | ||
Other Property, Plant and Equipment | ||
Gross other property, plant and equipment | 4,090 | 3,727 |
Vehicles | ||
Other Property, Plant and Equipment | ||
Gross other property, plant and equipment | 1,537 | 988 |
Aircraft | ||
Other Property, Plant and Equipment | ||
Gross other property, plant and equipment | 910 | 910 |
Other | ||
Other Property, Plant and Equipment | ||
Gross other property, plant and equipment | $ 247 | $ 219 |
Properties, Plant and Equipme52
Properties, Plant and Equipment - Other Property, Plant and Equipment - Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Properties, Plant and Equipment | |||
Depreciation and amortization of other property, plant and equipment | $ 1.3 | $ 1.1 | $ 0.8 |
Acquisition of Properties - Num
Acquisition of Properties - Number of Property Acquisitions (Details) | 12 Months Ended |
Dec. 31, 2015entity | |
Acquisition of Properties | |
Number of property acquisitions | 0 |
Acquisition of Properties - Pur
Acquisition of Properties - Purchase Price (Details) - Sabine acquisition - USD ($) $ in Millions | Dec. 18, 2013 | Jun. 30, 2014 |
Purchase price | ||
Purchase price | $ 179.2 | |
As Reported | ||
Purchase price | ||
Purchase price | $ 193.5 |
Acquisition of Properties - P55
Acquisition of Properties - Purchase Price Allocation (Details) - Sabine acquisition $ in Thousands | Jun. 30, 2014USD ($) |
Oil and gas properties | |
Unproved | $ 32,964 |
Proved | 147,024 |
Asset retirement obligations | (824) |
Total purchase price | $ 179,164 |
Acquisition of Properties - Pro
Acquisition of Properties - Pro Forma Results (Details) - Sabine acquisition - USD ($) $ in Thousands | Dec. 31, 2013 | Dec. 31, 2013 |
Pro Forma | ||
Post acquisition - Total operating revenue | $ 1,365 | |
Post acquisition - Total operating expenses | 291 | |
Post acquisition - Operating income | 1,074 | |
Post acquisition - Net income | $ 1,074 | |
Pro forma - Total operating revenue | $ 308,773 | |
Pro forma - Total operating expenses | 229,648 | |
Pro forma - Operating income | 79,125 | |
Pro forma - Net income | $ 45,778 |
Long-Term Debt - Tabular Disclo
Long-Term Debt - Tabular Disclosure (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Senior Unsecured Notes | |||
Total principal amount | $ 860,000 | $ 860,000 | |
Less: unamortized discount | (12,088) | ||
Total carrying amount | 847,912 | 860,000 | |
Senior notes | |||
Senior Unsecured Notes | |||
Total principal amount | $ 579,500 | ||
2022 Notes | Senior notes | |||
Senior Unsecured Notes | |||
Total principal amount | 500,000 | 500,000 | |
2023 Notes | Senior notes | |||
Senior Unsecured Notes | |||
Total principal amount | 250,000 | ||
Revolving credit facility | Wells Fargo Bank N.A. | Revolver | Line of credit | |||
Senior Unsecured Notes | |||
Total principal amount | $ 110,000 | $ 360,000 |
Long-Term Debt - 2022 Notes (De
Long-Term Debt - 2022 Notes (Details) - USD ($) $ in Thousands | Apr. 01, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 23, 2015 | Feb. 20, 2015 |
Senior Unsecured Notes | ||||||
Repayment under long-term debt | $ 335,000 | $ 468,000 | $ 172,000 | |||
2022 Notes | Senior notes | ||||||
Senior Unsecured Notes | ||||||
Aggregate principal amount | $ 500,000 | $ 500,000 | $ 500,000 | |||
Stated interest rate (as a percent) | 6.75% | |||||
Tenders received (as a percent) | 100.00% | |||||
Wells Fargo Bank N.A. | Revolving credit facility | Revolver | Line of credit | ||||||
Senior Unsecured Notes | ||||||
Repayment under long-term debt | $ 308,000 | |||||
Wells Fargo Bank N.A. | Term loan | Term Loan | Line of credit | ||||||
Senior Unsecured Notes | ||||||
Repayment under long-term debt | $ 160,000 |
Long-Term Debt - 2023 Notes (De
Long-Term Debt - 2023 Notes (Details) - USD ($) $ in Thousands | Feb. 23, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 11, 2016 | Jan. 12, 2016 | Nov. 18, 2015 |
Senior Unsecured Notes | ||||||
Notes proceeds from issuance | $ 236,475 | $ 500,000 | ||||
2023 Notes | Senior notes | ||||||
Senior Unsecured Notes | ||||||
Aggregate principal amount | $ 250,000 | $ 250,000 | $ 250,000 | |||
Stated interest rate (as a percent) | 9.25% | 9.25% | ||||
Discount of principal amount (as a percent) | 94.59% | |||||
Notes proceeds from issuance | $ 236,500 |
Long-Term Debt - Other Long-Ter
Long-Term Debt - Other Long-Term Debt (Details) - Wells Fargo Bank N.A. - Line of credit $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Oct. 08, 2015USD ($) | Feb. 23, 2015USD ($) | Nov. 06, 2014USD ($) | Nov. 05, 2014USD ($) | Dec. 31, 2009agreement | |
Other Long-Term Debt | ||||||||
Number of credit agreements | agreement | 2 | |||||||
Revolving credit facility | Revolver | ||||||||
Other Long-Term Debt | ||||||||
Borrowing base | $ 510 | $ 562.5 | $ 625 | $ 550 | ||||
Average interest rate (as a percent) | 2.39% | 2.51% | ||||||
Average outstanding balance | $ 144.9 | $ 333.8 | ||||||
Total interest and commitment fees | $ 5.1 | 9.5 | $ 12.3 | |||||
Covenant, total leverage ratio | 4 | |||||||
Covenant, current ratio | 1 | |||||||
Total leverage ratio | 3.2 | |||||||
Current ratio | 6.9 | |||||||
Revolving credit facility | London Interbank Offered Rate (LIBOR) | Minimum | Revolver | ||||||||
Other Long-Term Debt | ||||||||
Margin interest rate (as a percent) | 1.50% | |||||||
Revolving credit facility | London Interbank Offered Rate (LIBOR) | Maximum | Revolver | ||||||||
Other Long-Term Debt | ||||||||
Margin interest rate (as a percent) | 2.50% | |||||||
Revolving credit facility | Federal Funds Effective Swap Rate | Revolver | ||||||||
Other Long-Term Debt | ||||||||
Margin interest rate (as a percent) | 0.50% | |||||||
Revolving credit facility | One Month Adjust LIBO Rate | Revolver | ||||||||
Other Long-Term Debt | ||||||||
Margin interest rate (as a percent) | 1.00% | |||||||
Revolving credit facility | Base rate | Minimum | Revolver | ||||||||
Other Long-Term Debt | ||||||||
Margin interest rate (as a percent) | 0.50% | |||||||
Revolving credit facility | Base rate | Maximum | Revolver | ||||||||
Other Long-Term Debt | ||||||||
Margin interest rate (as a percent) | 1.50% | |||||||
Term loan | Term Loan | ||||||||
Other Long-Term Debt | ||||||||
Total interest and commitment fees | $ 3.6 | $ 14.7 |
Derivative Instruments and He61
Derivative Instruments and Hedging Activities - Hedging Positions (Details) - Commodity Derivative Instruments | 12 Months Ended | |
Dec. 31, 2015bbl / moMMBTU / mo$ / bbl$ / MMBTU | Dec. 31, 2014bbl / moMMBTU / mo$ / bbl$ / MMBTU | |
Basis swaps | Minimum | ||
Hedging Positions | ||
Contract differential (in dollars per mmbtu) | $ / MMBTU | (0.39) | (0.39) |
Nonmonetary notional amount | MMBTU / mo | 1,190,000 | 320,000 |
Basis swaps | Maximum | ||
Hedging Positions | ||
Contract differential (in dollars per mmbtu) | $ / MMBTU | (0.11) | (0.11) |
Nonmonetary notional amount | MMBTU / mo | 1,730,000 | 980,000 |
Basis swaps | Weighted Average | ||
Hedging Positions | ||
Contract differential (in dollars per mmbtu) | $ / MMBTU | (0.18) | (0.21) |
Nonmonetary notional amount | MMBTU / mo | 1,360,833 | 716,667 |
Oil | Swaps | Minimum | ||
Hedging Positions | ||
Exercise price (in dollars per barrels) | $ / bbl | 54.53 | 75.05 |
Nonmonetary notional amount | bbl / mo | 54,000 | 45,000 |
Oil | Swaps | Maximum | ||
Hedging Positions | ||
Exercise price (in dollars per barrels) | $ / bbl | 100.87 | 100.95 |
Nonmonetary notional amount | bbl / mo | 194,000 | 184,054 |
Oil | Swaps | Weighted Average | ||
Hedging Positions | ||
Exercise price (in dollars per barrels) | $ / bbl | 79.16 | 84.20 |
Nonmonetary notional amount | bbl / mo | 97,119 | 113,852 |
Natural gas | Swaps | Minimum | ||
Hedging Positions | ||
Exercise price (in dollars per mmbtu) | $ / MMBTU | 3.22 | 3.37 |
Nonmonetary notional amount | MMBTU / mo | 700,000 | 710,000 |
Natural gas | Swaps | Maximum | ||
Hedging Positions | ||
Exercise price (in dollars per mmbtu) | $ / MMBTU | 6.45 | 6.45 |
Nonmonetary notional amount | MMBTU / mo | 1,640,000 | 1,772,584 |
Natural gas | Swaps | Weighted Average | ||
Hedging Positions | ||
Exercise price (in dollars per mmbtu) | $ / MMBTU | 4.25 | 4.40 |
Nonmonetary notional amount | MMBTU / mo | 1,042,857 | 1,175,275 |
Natural gas liquids | Swaps | Minimum | ||
Hedging Positions | ||
Exercise price (in dollars per barrels) | $ / bbl | 8.90 | 8.09 |
Nonmonetary notional amount | bbl / mo | 2,000 | 2,000 |
Natural gas liquids | Swaps | Maximum | ||
Hedging Positions | ||
Exercise price (in dollars per barrels) | $ / bbl | 95.24 | 95.24 |
Nonmonetary notional amount | bbl / mo | 112,000 | 143,000 |
Natural gas liquids | Swaps | Weighted Average | ||
Hedging Positions | ||
Exercise price (in dollars per barrels) | $ / bbl | 32.62 | 42.46 |
Nonmonetary notional amount | bbl / mo | 51,792 | 50,444 |
Derivative Instruments and He62
Derivative Instruments and Hedging Activities - Recognized Gain (Loss ) on Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commodity Derivative Instruments | |||
Recognized Net Gain (Loss) on Derivative Instruments | |||
Net gains (losses) recognized on derivative instruments | $ 158.8 | $ 189.6 | $ (2.6) |
Derivative Instruments and He63
Derivative Instruments and Hedging Activities - Offsetting Assets and Liabilities - Counterparties (Details) | Dec. 31, 2015Counterparty |
Derivative Instruments and Hedging Activities | |
Number of counterparties to commodity derivative contracts | 6 |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities - Offsetting Assets (Details) - Commodity Derivative Instruments - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Gross Amounts of Recognized Assets | $ 218,036 | $ 208,646 |
Gross Amounts Offset in the Balance Sheet | (527) | (72) |
Net Amounts of Assets Presented in the Balance Sheet | 217,509 | 208,574 |
Net Amount | $ 217,509 | $ 208,574 |
Derivative Instruments and He65
Derivative Instruments and Hedging Activities - Offsetting Liabilities (Details) - Commodity Derivative Instruments - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | $ (538) | $ (100) |
Gross Amounts Offset in the Balance Sheet | 527 | 72 |
Net Amounts of Liabilities Presented in the Balance Sheet | (11) | (28) |
Net Amount | $ (11) | $ (28) |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Instruments Carried at Fair Value by Consolidated Balance Sheet Caption and by Valuation Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Valuation Hierarchy | ||
Current assets | $ 124,207 | $ 121,519 |
Long-term assets | 93,302 | 87,055 |
Current liabilities | (11) | |
Long-term liabilities | (28) | |
Recurring | Commodity Derivative Instruments | ||
Valuation Hierarchy | ||
Current assets | 124,207 | 121,519 |
Long-term assets | 93,302 | 87,055 |
Current liabilities | (11) | |
Long-term liabilities | (28) | |
Recurring | Level 2 | Commodity Derivative Instruments | ||
Valuation Hierarchy | ||
Current assets | 122,779 | 120,604 |
Long-term assets | 93,302 | 85,162 |
Current liabilities | (11) | |
Recurring | Level 3 | Commodity Derivative Instruments | ||
Valuation Hierarchy | ||
Current assets | $ 1,428 | 915 |
Long-term assets | 1,893 | |
Long-term liabilities | $ (28) |
Fair Value Measurement - Quanti
Fair Value Measurement - Quantitative Information about Level 3 Inputs - Assets (Details) - Commodity Derivative Instruments $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / bbl | Dec. 31, 2014USD ($)$ / bbl | |
Commodity Derivative Instruments - Assets | ||
Fair Value | $ | $ 218,036 | $ 208,646 |
Natural gas liquids | Swaps | Minimum | ||
Commodity Derivative Instruments - Assets | ||
Natural gas liquid futures prices (in dollars per barrel) | 8.90 | 8.09 |
Natural gas liquids | Swaps | Maximum | ||
Commodity Derivative Instruments - Assets | ||
Natural gas liquid futures prices (in dollars per barrel) | 95.24 | 95.24 |
Discounted cash flow approach | Level 3 | Natural gas liquids | Swaps | ||
Commodity Derivative Instruments - Assets | ||
Fair Value | $ | $ 1,428 | |
Discounted cash flow approach | Level 3 | Natural gas liquids | Swaps | Minimum | ||
Commodity Derivative Instruments - Assets | ||
Natural gas liquid futures prices (in dollars per barrel) | 8.90 | |
Discounted cash flow approach | Level 3 | Natural gas liquids | Swaps | Maximum | ||
Commodity Derivative Instruments - Assets | ||
Natural gas liquid futures prices (in dollars per barrel) | 47.25 |
Fair Value Measurement - Change
Fair Value Measurement - Changes in Level 3 Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in fair value of Level 3 instruments | ||
Balance at the beginning of the period | $ 2,780 | $ (1,235) |
Purchases | 648 | 668 |
Settlements | (960) | 476 |
Transfers into Level 3 | (265) | |
Transfer to Level 2 | (1,367) | 332 |
Changes in fair value | 327 | 2,804 |
Balance at the end of the period | $ 1,428 | $ 2,780 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Amount | 2022 Notes | Senior notes | ||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||
Debt | $ 500,000 | $ 500,000 |
Carrying Amount | 2023 Notes | Senior notes | ||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||
Debt | 250,000 | |
Carrying Amount | Revolving credit facility | Revolver | Line of credit | ||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||
Debt | 110,000 | 360,000 |
Level 3 | Nonrecurring | Fair Value | Revolving credit facility | Revolver | Line of credit | ||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||
Debt | 110,000 | 360,000 |
Level 1 | Nonrecurring | Fair Value | 2022 Notes | Senior notes | ||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||
Debt | 260,000 | $ 384,375 |
Level 2 | Nonrecurring | Fair Value | 2023 Notes | Senior notes | ||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||
Debt | $ 153,283 |
Asset Retirement Obligations -
Asset Retirement Obligations - Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Asset Retirement Obligations | |||
Balance at beginning of period | $ 13,610 | $ 10,963 | |
Liabilities incurred | 6,349 | 1,995 | $ 1,516 |
Accretion of ARO liability | 1,087 | 770 | 608 |
Liabilities settled due to sale of related properties | (19) | (109) | |
Liabilities settled due to plugging and abandonment | (69) | (55) | |
Change in estimate | 22 | 46 | |
Balance at end of period | $ 20,980 | $ 13,610 | $ 10,963 |
Asset Retirement Obligations 71
Asset Retirement Obligations - Liability at End of Year (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Asset Retirement Obligations | |||
ARO liability at end of period | $ 20,980 | $ 13,610 | $ 10,963 |
Less: Current portion of ARO | (679) | (3,074) | |
Total long-term ARO at end of period | $ 20,301 | $ 10,536 |
Asset Retirement Obligations 72
Asset Retirement Obligations - Immaterial Errors (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Asset Retirement Obligations | ||||
Liabilities incurred | $ 6,349 | $ 1,995 | $ 1,516 | |
Accretion of ARO liability | 1,087 | 770 | 608 | |
Depletion, depreciation and amortization | 205,498 | $ 181,669 | $ 114,136 | |
Immaterial errors originating in 2013 and 2014 | Adjustment | ||||
Asset Retirement Obligations | ||||
Liabilities incurred | $ 4,700 | |||
Accretion of ARO liability | $ 200 | |||
Depletion, depreciation and amortization | $ 600 |
Stock-based Compensation - Mana
Stock-based Compensation - Management Unit Awards - New Awards (Details) | 29 Months Ended |
Dec. 31, 2015shares | |
Management Unit Awards | |
Additional disclosures | |
Awards (in shares) | 0 |
Stock-based Compensation - Ma74
Stock-based Compensation - Management Unit Awards - Activity (Details) - Management Unit Awards | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Units | |
Unvested at the beginning of the period (in shares) | shares | 274,385 |
Granted (in shares) | shares | 1,909 |
Forfeited (in shares) | shares | (1,909) |
Vested (in shares) | shares | (85,030) |
Unvested at the end of the period (in shares) | shares | 189,355 |
Weighted Average Grant Date Fair Value per Share | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 15 |
Granted (in dollars per share) | $ / shares | 15 |
Forfeited (in dollars per share) | $ / shares | 15 |
Vested (in dollars per share) | $ / shares | 15 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 15 |
Stock-based Compensation - Ma75
Stock-based Compensation - Management Unit Awards - Stock Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
General and administrative expenses | Management Unit Awards | |||
Stock compensation expense | |||
Stock compensation expense | $ 1.3 | $ 1.6 | $ 10.7 |
Stock-based Compensation - Ma76
Stock-based Compensation - Management Unit Awards - Additional Disclosures (Details) - Management Unit Awards $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / shares | |
Additional disclosures | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 15 |
Unrecognized expenses | $ | $ 2.8 |
Weighted-average remaining recognition period (in years) | 1 year 2 months 12 days |
Stock-based Compensation - 2013
Stock-based Compensation - 2013 Omnibus Incentive Plan (Details) | Dec. 31, 2015shares |
2013 Omnibus Incentive Plan | Class A common stock | |
Stock-based Compensation | |
Shares reserved (in shares) | 3,850,000 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Unit Awards - Activity (Details) - Restricted Stock Unit Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Awards | |||
Unvested at the beginning of the period (in shares) | 324,897 | ||
Granted (in shares) | 572,939 | 0 | |
Forfeited (in shares) | (14,995) | ||
Vested (in shares) | (125,596) | ||
Unvested at the end of the period (in shares) | 757,245 | 324,897 | |
Weighted Average Grant Date Fair Value per Share | |||
Unvested at the beginning of the period (in dollars per share) | $ 17.33 | ||
Granted (in dollars per share) | 9.58 | $ 17.31 | |
Forfeited (in dollars per share) | 12.84 | ||
Vested (in dollars per share) | 16.75 | ||
Unvested at the end of the period (in dollars per share) | $ 11.65 | $ 17.33 |
Stock-based Compensation - Re79
Stock-based Compensation - Restricted Stock Unit Awards - Stock Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
General and administrative expenses | Restricted Stock Unit Awards | |||
Stock compensation expense | |||
Stock compensation expense | $ 3.1 | $ 1.1 | $ 0 |
Stock-based Compensation - Re80
Stock-based Compensation - Restricted Stock Unit Awards - Additional Disclosures (Details) - Restricted Stock Unit Awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Additional disclosures | |||
Weighted average grant date fair value (in dollars per share) | $ 9.58 | $ 17.31 | |
Awards (in shares) | 572,939 | 0 | |
Unrecognized expenses | $ 5.9 | ||
Weighted-average remaining recognition period (in years) | 1 year 1 month 6 days |
Stock-based Compensation - Perf
Stock-based Compensation - Performance Unit Awards - General Information (Details) - Performance Unit Awards | 12 Months Ended |
Dec. 31, 2015 | |
Additional disclosures | |
Vesting term | 3 years |
Class A common stock | |
Additional disclosures | |
Exchangeable ratio of vested performance unit (as a percent) | 1.00% |
Class A common stock | Minimum | |
Additional disclosures | |
Number of shares of common stock issuable upon vesting of the performance unit awards (as a percent) | 0.00% |
Class A common stock | Maximum | |
Additional disclosures | |
Number of shares of common stock issuable upon vesting of the performance unit awards (as a percent) | 200.00% |
Stock-based Compensation - Pe82
Stock-based Compensation - Performance Unit Awards - Activity (Details) - Performance Unit Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Awards | |||
Unvested at the beginning of the period (in shares) | 192,998 | ||
Granted (in shares) | 361,422 | 0 | |
Vested (in shares) | (15,232) | ||
Unvested at the end of the period (in shares) | 539,188 | 192,998 | |
Weighted Average Grant Date Fair Value per Share | |||
Unvested at the beginning of the period (in dollars per share) | $ 21.65 | ||
Granted (in dollars per share) | 10.27 | $ 21.65 | |
Vested (in dollars per share) | 14.59 | ||
Unvested at the end of the period (in dollars per share) | $ 14.22 | $ 21.65 |
Stock-based Compensation - Pe83
Stock-based Compensation - Performance Unit Awards - Stock Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
General and administrative expenses | Performance Unit Awards | |||
Stock compensation expense | |||
Stock compensation expense | $ 2.6 | $ 0.9 | $ 0 |
Stock-based Compensation - Pe84
Stock-based Compensation - Performance Unit Awards - Additional Disclosures (Details) - Performance Unit Awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Additional disclosures | |||
Weighted average grant date fair value (in dollars per share) | $ 10.27 | $ 21.65 | |
Awards (in shares) | 361,422 | 0 | |
Unrecognized expenses | $ 4 | ||
Weighted-average remaining recognition period (in years) | 1 year 6 months |
Stock-based Compensation - Pe85
Stock-based Compensation - Performance Unit Awards - Monte Carlo Simulation (Details) - Performance Unit Awards - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Assumptions used to determine the grant date fair value and associated compensation expense | ||
Stock Price (in dollars per share) | $ 10.11 | $ 17.07 |
Beginning Average Stock Price (in dollars per share) | $ 11.56 | $ 14.78 |
Expected Volatility (as a percent) | 55.13% | 46.95% |
Risk-Free Rate of Return (as a percent) | 0.79% | 0.61% |
Number of trading days (in days) | 10 days | |
Remaining in the performance period (in years) | 2 years 8 months 1 day | 2 years 7 months 13 days |
Expected percentage of performance units earned (as a percent) | 101.61% | 126.80% |
Stock-based Compensation - Re86
Stock-based Compensation - Restricted Stock Awards - General Information (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Restricted Stock Awards | |
Additional disclosures | |
Service period from date of grant | 1 year |
Stock-based Compensation - Re87
Stock-based Compensation - Restricted Stock Awards - Activity (Details) - Restricted Stock Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Awards | |||
Unvested at the beginning of the period (in shares) | 27,430 | ||
Granted (in shares) | 67,380 | ||
Vested (in shares) | (27,430) | ||
Unvested at the end of the period (in shares) | 67,380 | 27,430 | |
Weighted Average Grant Date Fair Value per Share | |||
Unvested at the beginning of the period (in dollars per share) | $ 18.77 | ||
Granted (in dollars per share) | 7.30 | $ 18.77 | $ 15.05 |
Vested (in dollars per share) | 18.77 | ||
Unvested at the end of the period (in dollars per share) | $ 7.30 | $ 18.77 |
Stock-based Compensation - Re88
Stock-based Compensation - Restricted Stock Awards - Stock Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
General and administrative expenses | Restricted Stock Awards | |||
Stock compensation expense | |||
Stock compensation expense | $ 0.6 | $ 0.4 | $ 0.1 |
Stock-based Compensation - Re89
Stock-based Compensation - Restricted Stock Awards - Additional Disclosures (Details) - Restricted Stock Awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Additional disclosures | |||
Weighted average grant date fair value (in dollars per share) | $ 7.30 | $ 18.77 | $ 15.05 |
Unrecognized expenses | $ 0.2 | ||
Weighted-average remaining recognition period (in years) | 4 months 24 days |
Stock-based Compensation - Tax
Stock-based Compensation - Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based Compensation | |||
Associated tax benefit | $ 1.1 | $ 0.4 | $ 0.1 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Benefit Plans | |||
Expenses | $ 0.5 | $ 0.3 | $ 0.3 |
Income Taxes - Tax Provision -
Income Taxes - Tax Provision - Current and Deferred (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax expense: | |||
Federal | $ 53 | $ 85 | |
State | $ 113 | ||
Total current expense | 113 | 53 | 85 |
Deferred tax expense (benefit): | |||
Federal | (1,137) | 22,140 | (1,260) |
State | (1,757) | 4,025 | 1,104 |
Total deferred expense (benefit) | (2,894) | 26,165 | (156) |
Total income tax provision (benefit) | $ (2,781) | $ 26,218 | $ (71) |
Income Taxes - Tax Provision 93
Income Taxes - Tax Provision - Attributable to Controlling Interests and Non-controlling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax provision | |||
Tax expense (benefit) attributable to controlling interests | $ (1,160) | $ 22,819 | $ (1,223) |
Tax expense attributable to non-controlling interests | (1,621) | 3,399 | 1,152 |
Total income tax provision (benefit) | $ (2,781) | $ 26,218 | $ (71) |
Income Taxes - Tax Rate (Detail
Income Taxes - Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes | |||
Statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Provision for Income Taxes - Tabular Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Provision calculated at federal statutory income tax rate: | |||
Net income before taxes | $ (11,858) | $ 251,838 | $ 22,334 |
Statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
Income tax expense computed at statutory rate | $ (4,150) | $ 88,144 | $ 7,817 |
Less: Noncontrolling interests | 2,911 | (65,759) | (9,009) |
Income tax expense (benefit) attributable to controlling interests | (1,239) | 22,385 | (1,192) |
State and local income taxes, net of federal benefit | (1,011) | 626 | (49) |
Reduction of TRA liability | (694) | ||
Equity compensation, shortfall | 338 | ||
Change in enacted rate | (650) | ||
Change in valuation allowance | 2,333 | ||
Other | (237) | (192) | 18 |
Tax expense (benefit) attributable to controlling interests | (1,160) | 22,819 | (1,223) |
Tax expense attributable to non-controlling interests | (1,621) | 3,399 | 1,152 |
Total income tax provision (benefit) | $ (2,781) | $ 26,218 | $ (71) |
Income Taxes - Reconciliation96
Income Taxes - Reconciliation of the Provision for Income Taxes - Immaterial Error (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Provision calculated at federal statutory income tax rate: | |||
Deferred income tax provision | $ (2,894) | $ 26,165 | $ (156) |
Immaterial error from the year ended December 31. 2014 | Adjustment | |||
Provision calculated at federal statutory income tax rate: | |||
Deferred income tax provision | $ 900 | $ (900) |
Income Taxes - State Tax Rate (
Income Taxes - State Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | ||
Texas state tax rate (as a percent) | 0.75% | 1.00% |
Benefit from revaluing deferred tax assets at the newly enacted rate | $ 1.7 | |
Benefit from revaluing deferred tax assets at the newly enacted rate, non-controlling interest | $ 1 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Net operating loss | $ 9,414 | $ 8,223 |
Section 754 election tax basis adjustment | 47,100 | 945 |
Alternative minimum tax credits | 53 | |
State deferred tax asset | 505 | 232 |
Total deferred tax assets | 57,019 | 9,453 |
Deferred tax liabilities | ||
Investment in consolidated subsidiary JEH | 73,559 | 29,307 |
Noncurrent state deferred tax liability | 4,099 | 7,449 |
Total deferred tax liabilities | 77,658 | 36,756 |
Net deferred tax assets (liabilities) | (20,639) | (27,303) |
Valuation allowance | (2,333) | |
Net deferred tax assets (liabilities) | $ (22,972) | $ (27,303) |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carry-forward (Details) $ in Millions | Dec. 31, 2015USD ($) |
Operating loss carry-forward | |
Valuation allowance | $ 2.3 |
Federal | |
Operating loss carry-forward | |
Net operating loss carry-forward | 24.8 |
State | |
Operating loss carry-forward | |
Net operating loss carry-forward | $ 19.5 |
Income Taxes - Tax Receivable A
Income Taxes - Tax Receivable Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | ||
Tax Savings Receivable in Connection with Tax Receivable Agreement (as a percent) | 85.00% | |
Benefits of cash savings retained under tax receivable agreement (as a percent) | 15.00% | |
Reduction in the liability | $ 2,000 | |
Liability under tax receivable agreement | 38,052 | $ 803 |
Valuation allowance | $ 44,800 | $ 900 |
Income Taxes - Tax Receivabl101
Income Taxes - Tax Receivable Agreement - Shares Exchanged (Details) shares in Millions | 1 Months Ended |
May. 31, 2015shares | |
Metalmark | Beneficial owner | |
Tax Receivable Agreement | |
Exchange of JEH Units and Class B shares | 5 |
Earnings per Share - Anti-dilut
Earnings per Share - Anti-dilutive Securities (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Awards | ||
Earnings per Share | ||
Antidilutive securities (in shares) | 757,245 | 27,430 |
Restricted Stock Unit Awards | ||
Earnings per Share | ||
Antidilutive securities (in shares) | 67,380 | 54,656 |
Performance Unit Awards | ||
Earnings per Share | ||
Antidilutive securities (in shares) | 539,188 | 192,998 |
Class B common stock | ||
Earnings per Share | ||
Economic interests/rights (as a percent) | 0.00% |
Earnings per Share - Basic Earn
Earnings per Share - Basic Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income (numerator): | |||
Net income (loss) attributable to controlling interests | $ (2,381) | $ 41,136 | $ (2,186) |
Weighted-average shares (denominator): | |||
Weighted-average number of shares of Class A common stock - basic | 26,816 | 12,526 | 12,500 |
Weighted-average number of shares of Class A common stock - diluted | 26,816 | 12,535 | 12,500 |
Earnings per share: | |||
Basic (in dollars per share) | $ (0.09) | $ 3.28 | $ (0.17) |
Diluted (in dollars per share) | $ (0.09) | $ 3.28 | $ (0.17) |
Related Parties - Natural Gas S
Related Parties - Natural Gas Sale and Purchase Agreement with Monarch Natural Gas, LLC (Details) $ in Thousands | Sep. 01, 2013 | Dec. 31, 2015USD ($)MMBoe | Dec. 31, 2014USD ($)MMBoe | Dec. 31, 2013USD ($)MMBoe |
Related Party Transactions | ||||
Oil and gas sales | $ 194,555 | $ 378,401 | $ 258,063 | |
Enable Midstream Partners LP | ||||
Related Party Transactions | ||||
Initial term of the agreement (in years) | 10 years | |||
Investee | Monarch Natural Gas, LLC | ||||
Related Party Transactions | ||||
Production of natural gas and NGLs (in MMBoe) | MMBoe | 1 | 1.4 | 0.8 | |
Oil and gas sales | $ 10,600 | $ 37,000 | $ 10,400 |
Related Parties - Metalmark Cap
Related Parties - Metalmark Capital and Monarch Natural Gas, LLC (Details) $ in Millions | May. 07, 2013 | Dec. 31, 2015director | Dec. 31, 2013USD ($) |
Monarch Natural Gas, LLC | Investee | Metalmark | |||
Related Party Transactions | |||
Metalmark Capital's ownership percentage in Monarch (as a percent) | 81.00% | ||
Metalmark | Beneficial owner | |||
Related Party Transactions | |||
Number of directors who are managing directors of the related party | director | 2 | ||
Annual administration fee | $ | $ 0.7 | ||
Minimum | Metalmark | Beneficial owner | |||
Related Party Transactions | |||
Metalmark Capital's beneficial ownership interest in the Company (as a percent) | 5.00% |
Related Parties - Monarch Natur
Related Parties - Monarch Natural Gas, LLC Equity Interests (Details) - Monarch Natural Gas, LLC - Investee - USD ($) $ in Millions | May. 07, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transactions | ||||
Estimated fair value of equity interests issued to the entity | $ 15 | |||
Amortization of deferred revenue | $ 2 | $ 1.2 | $ 0.5 | |
Value of equity interests from related party | 15 | |||
Value of equity interests assigned to Jonny Jones | 2.4 | |||
Value of equity interests reserved for an incentive plan established for certain of the entity's officers | 2.6 | |||
Value of remaining equity interests distributed to certain of the pre-IPO owners | $ 10 | |||
Equity interests distributed to management | 0.8 | 0.5 | ||
Compensation expense recognized under management distributions and incentive plan | 0.5 | $ 0.8 | $ 0.3 | |
Other assets | ||||
Related Party Transactions | ||||
Estimated fair value of equity interests issued to the entity | $ 1.3 |
Related Parties - Transportatio
Related Parties - Transportation Agreement with Monarch Oil Pipeline LLC (Details) - Monarch Oil Pipeline LLC - Investee $ in Millions | 1 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2015USD ($)bbl / dMMBoe | |
Related Party Transactions | ||
Term of Oil Gathering and Transportation Agreement (in years) | 10 years | |
Gathering fees | $ | $ 0.4 | |
Oil production transported (in MMBoe) | MMBoe | 0.2 | |
Reserved capacity (in barrels per day) | bbl / d | 12,000 |
Related Parties - Monarch Cash
Related Parties - Monarch Cash Distribution (Details) $ in Millions | 1 Months Ended |
May. 31, 2015USD ($) | |
Monarch Natural Gas, LLC | Investee | |
Related Party Transactions | |
Cash distributions associated with equity interests | $ 0.7 |
Commitments and Contingencies -
Commitments and Contingencies - Area Leased (Details) | Dec. 31, 2015ft² |
Office space in Austin, TX | |
Lease obligations | |
Leased area of office space in Austin, TX (in square feet) | 43,000 |
Commitments and Contingencie110
Commitments and Contingencies - Future Minimum Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Future minimum payments for noncancellable operating leases | |
2,016 | $ 945 |
2,017 | 1,038 |
2,018 | 1,101 |
2,019 | 1,122 |
2,020 | 377 |
Total | $ 4,583 |
Commitments and Contingencie111
Commitments and Contingencies - Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies | |||
Rent expense under operating leases | $ 1.6 | $ 0.9 | $ 0.8 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Feb. 11, 2016 | Jan. 12, 2016 | Dec. 31, 2015 | Nov. 18, 2015 | Mar. 23, 2015 | Feb. 23, 2015 | Feb. 20, 2015 | Dec. 31, 2014 | Apr. 01, 2014 |
Senior Unsecured Notes | ||||||||||
Aggregate principal carrying amount | $ 860,000 | $ 860,000 | ||||||||
Cash | ||||||||||
Cash | $ 46,000 | 21,893 | 13,566 | |||||||
Senior notes | ||||||||||
Senior Unsecured Notes | ||||||||||
Aggregate principal amount repurchased | 170,500 | |||||||||
Aggregate principal carrying amount | 579,500 | |||||||||
2022 Notes | Senior notes | ||||||||||
Senior Unsecured Notes | ||||||||||
Stated interest rate (as a percent) | 6.75% | |||||||||
Aggregate principal amount | $ 500,000 | $ 500,000 | $ 500,000 | |||||||
Tenders received (as a percent) | 100.00% | |||||||||
Aggregate principal carrying amount | 500,000 | 500,000 | ||||||||
2022 Notes | Senior notes | Subsequent event | ||||||||||
Senior Unsecured Notes | ||||||||||
Aggregate principal amount repurchased | 70,500 | |||||||||
Purchased amount | 27,100 | |||||||||
2023 Notes | Senior notes | ||||||||||
Senior Unsecured Notes | ||||||||||
Stated interest rate (as a percent) | 9.25% | 9.25% | ||||||||
Aggregate principal amount | $ 250,000 | $ 250,000 | $ 250,000 | |||||||
Tenders received (as a percent) | 100.00% | |||||||||
Aggregate principal carrying amount | 250,000 | |||||||||
2023 Notes | Senior notes | Subsequent event | ||||||||||
Senior Unsecured Notes | ||||||||||
Aggregate principal amount repurchased | 100,000 | |||||||||
Purchased amount | 46,500 | |||||||||
Wells Fargo Bank N.A. | Revolving credit facility | Revolver | Line of credit | ||||||||||
Senior Unsecured Notes | ||||||||||
Aggregate principal carrying amount | $ 110,000 | $ 360,000 | ||||||||
Other Long-Term Debt | ||||||||||
Drawn revolver balance | 185,000 | |||||||||
Undrawn balance | $ 325,000 |
Subsidiary Guarantors - Debt Is
Subsidiary Guarantors - Debt Issued (Details) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015subsidiary | Feb. 11, 2016USD ($) | Jan. 12, 2016USD ($) | Mar. 23, 2015USD ($) | Feb. 23, 2015USD ($) | Feb. 20, 2015USD ($) | Apr. 01, 2014USD ($) | |
Senior notes | 2022 Notes | |||||||
Subsidiary Guarantors | |||||||
Issuance of debt | $ 500 | $ 500 | $ 500 | ||||
Senior notes | 2023 Notes | |||||||
Subsidiary Guarantors | |||||||
Issuance of debt | $ 250 | $ 250 | $ 250 | ||||
Issuers | Senior notes | 2022 Notes | |||||||
Subsidiary Guarantors | |||||||
Issuance of debt | $ 500 | ||||||
Issuers | Senior notes | 2023 Notes | |||||||
Subsidiary Guarantors | |||||||
Issuance of debt | $ 250 | ||||||
JEH | Guarantor Subsidiaries | |||||||
Subsidiary Guarantors | |||||||
Ownership percentage in subsidiary guarantors | 100.00% | ||||||
JEH | Senior notes | |||||||
Subsidiary Guarantors | |||||||
Immaterial subsidiaries | subsidiary | 2 |
Subsidiary Guarantors - General
Subsidiary Guarantors - General Information (Details) | Jul. 29, 2013class | Dec. 31, 2015class | Feb. 29, 2016 |
Subsidiary Guarantors | |||
Classes of stock, number | 2 | 2 | |
Class A common stock | |||
Subsidiary Guarantors | |||
Economic interests/rights (as a percent) | 100.00% | ||
Votes per share entitled to stockholders | 1 | ||
Class B common stock | |||
Subsidiary Guarantors | |||
Economic interests/rights (as a percent) | 0.00% | ||
Votes per share entitled to stockholders | 1 | ||
Existing Owners | Class A common stock | |||
Subsidiary Guarantors | |||
Ratio in which JEH Units and Class B common stock are exchanged for Class A common stock | 1 | 1 | |
JEH | |||
Subsidiary Guarantors | |||
The Company's economic interest in JEH (as a percent) | 49.40% | ||
JEH | Existing Owners | |||
Subsidiary Guarantors | |||
The Existing Owners' economic interest in JEH (as a percent) | 74.70% | 50.60% | 50.60% |
Subsidiary Guarantors - Condens
Subsidiary Guarantors - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets | |||||
Cash | $ 46,000 | $ 21,893 | $ 13,566 | ||
Restricted cash | 330 | 149 | |||
Accounts receivable, net | |||||
Oil and gas sales | 19,292 | 51,482 | |||
Joint interest owners | 11,314 | 41,761 | |||
Other | 15,170 | 12,512 | |||
Commodity derivative assets | 124,207 | 121,519 | |||
Other current assets | 2,298 | 3,374 | |||
Total current assets | 194,504 | 244,363 | |||
Oil and gas properties, net, at cost under the successful efforts method | 1,635,766 | 1,638,860 | |||
Other property, plant and equipment, net | 3,873 | 4,048 | |||
Commodity derivative assets | 93,302 | 87,055 | |||
Other assets | 17,967 | 20,352 | |||
Deferred tax assets | 171 | ||||
Total assets | 1,945,412 | 1,994,849 | |||
Current liabilities | |||||
Trade accounts payable | 7,467 | 136,337 | |||
Oil and gas sales payable | 32,408 | 70,469 | |||
Accrued liabilities | 27,341 | 19,401 | |||
Commodity derivative liabilities | 11 | ||||
Asset retirement obligations | 679 | 3,074 | |||
Total current liabilities | 67,906 | 229,281 | |||
Long-term debt | 847,912 | 860,000 | |||
Deferred revenue | 11,417 | 13,377 | |||
Commodity derivative liabilities | 28 | ||||
Asset retirement obligations | 20,301 | 10,536 | |||
Liability under tax receivable agreement | 38,052 | 803 | |||
Deferred tax liabilities | 22,972 | 27,474 | |||
Total liabilities | 1,008,560 | 1,141,499 | |||
Stockholders' / members' equity | |||||
Treasury stock, at cost; 22,602 shares at December 31, 2015 and December 31, 2014 | (358) | (358) | |||
Additional paid-in-capital | 363,723 | 178,763 | |||
Retained earnings (deficit) | 36,569 | 38,950 | |||
Stockholders' equity | 399,996 | 217,405 | |||
Non-controlling interest | 536,856 | 635,945 | |||
Total stockholders' equity | 936,852 | 853,350 | $ 624,124 | $ 428,400 | |
Total liabilities and stockholders' equity | 1,945,412 | 1,994,849 | |||
Class A common stock | |||||
Stockholders' / members' equity | |||||
Common stock | 31 | 13 | |||
Class B common stock | |||||
Stockholders' / members' equity | |||||
Common stock | 31 | 37 | |||
Eliminations | |||||
Accounts receivable, net | |||||
Intercompany receivable | (1,174,863) | (1,208,142) | |||
Total current assets | (1,174,863) | (1,208,142) | |||
Investment in subsidiaries | (444,362) | (233,908) | |||
Total assets | (1,619,225) | (1,442,050) | |||
Current liabilities | |||||
Intercompany payable | (1,394,272) | (1,211,958) | |||
Total current liabilities | (1,394,272) | (1,211,958) | |||
Total liabilities | (1,394,272) | (1,211,958) | |||
Stockholders' / members' equity | |||||
Members' equity | (761,809) | (866,037) | |||
Non-controlling interest | 536,856 | 635,945 | |||
Total stockholders' equity | (224,953) | (230,092) | |||
Total liabilities and stockholders' equity | (1,619,225) | (1,442,050) | |||
JEI (Parent) | |||||
Current assets | |||||
Cash | 100 | 100 | |||
Accounts receivable, net | |||||
Other | 102 | ||||
Intercompany receivable | 12,866 | 4,164 | |||
Total current assets | 12,966 | 4,366 | |||
Deferred tax assets | 171 | ||||
Investment in subsidiaries | 444,362 | 233,908 | |||
Total assets | 457,328 | 238,445 | |||
Current liabilities | |||||
Liability under tax receivable agreement | 38,052 | 803 | |||
Deferred tax liabilities | 19,280 | 20,237 | |||
Total liabilities | 57,332 | 21,040 | |||
Stockholders' / members' equity | |||||
Treasury stock, at cost; 22,602 shares at December 31, 2015 and December 31, 2014 | (358) | (358) | |||
Additional paid-in-capital | 363,723 | 178,763 | |||
Retained earnings (deficit) | 36,569 | 38,950 | |||
Stockholders' equity | 399,996 | 217,405 | |||
Total stockholders' equity | 399,996 | 217,405 | |||
Total liabilities and stockholders' equity | 457,328 | 238,445 | |||
JEI (Parent) | Class A common stock | |||||
Stockholders' / members' equity | |||||
Common stock | 31 | 13 | |||
JEI (Parent) | Class B common stock | |||||
Stockholders' / members' equity | |||||
Common stock | 31 | 37 | |||
Issuers | |||||
Current assets | |||||
Cash | 12,448 | 1,000 | |||
Accounts receivable, net | |||||
Other | 14,444 | 8,788 | |||
Commodity derivative assets | 124,207 | 121,519 | |||
Other current assets | 444 | 451 | |||
Intercompany receivable | 1,161,997 | 1,203,978 | |||
Total current assets | 1,313,540 | 1,335,736 | |||
Commodity derivative assets | 93,302 | 87,055 | |||
Other assets | 17,714 | 20,098 | |||
Total assets | 1,424,556 | 1,442,889 | |||
Current liabilities | |||||
Trade accounts payable | 388 | 288 | |||
Accrued liabilities | 15,741 | 8,914 | |||
Commodity derivative liabilities | 11 | ||||
Total current liabilities | 16,140 | 9,202 | |||
Long-term debt | 847,912 | 860,000 | |||
Deferred revenue | 11,417 | 13,377 | |||
Commodity derivative liabilities | 28 | ||||
Deferred tax liabilities | 3,692 | 7,237 | |||
Total liabilities | 879,161 | 889,844 | |||
Stockholders' / members' equity | |||||
Members' equity | 545,395 | 553,045 | |||
Total stockholders' equity | 545,395 | 553,045 | |||
Total liabilities and stockholders' equity | 1,424,556 | 1,442,889 | |||
Guarantor Subsidiaries | |||||
Current assets | |||||
Cash | 9,325 | 12,436 | |||
Restricted cash | 330 | 149 | |||
Accounts receivable, net | |||||
Oil and gas sales | 19,292 | 51,482 | |||
Joint interest owners | 11,314 | 41,761 | |||
Other | 726 | 3,622 | |||
Other current assets | 1,854 | 2,923 | |||
Total current assets | 42,841 | 112,373 | |||
Oil and gas properties, net, at cost under the successful efforts method | 1,635,766 | 1,638,860 | |||
Other property, plant and equipment, net | 3,168 | 3,252 | |||
Other assets | 253 | 254 | |||
Total assets | 1,682,028 | 1,754,739 | |||
Current liabilities | |||||
Trade accounts payable | 7,079 | 136,049 | |||
Oil and gas sales payable | 32,408 | 70,469 | |||
Accrued liabilities | 11,600 | 10,487 | |||
Asset retirement obligations | 679 | 3,074 | |||
Intercompany payable | 1,391,838 | 1,209,630 | |||
Total current liabilities | 1,443,604 | 1,429,709 | |||
Asset retirement obligations | 20,301 | 10,536 | |||
Total liabilities | 1,463,905 | 1,440,245 | |||
Stockholders' / members' equity | |||||
Members' equity | 218,123 | 314,494 | |||
Total stockholders' equity | 218,123 | 314,494 | |||
Total liabilities and stockholders' equity | 1,682,028 | 1,754,739 | |||
Non-Guarantor Subsidiaries | |||||
Current assets | |||||
Cash | 20 | 30 | |||
Accounts receivable, net | |||||
Total current assets | 20 | 30 | |||
Other property, plant and equipment, net | 705 | 796 | |||
Total assets | 725 | 826 | |||
Current liabilities | |||||
Intercompany payable | 2,434 | 2,328 | |||
Total current liabilities | 2,434 | 2,328 | |||
Total liabilities | 2,434 | 2,328 | |||
Stockholders' / members' equity | |||||
Members' equity | (1,709) | (1,502) | |||
Total stockholders' equity | (1,709) | (1,502) | |||
Total liabilities and stockholders' equity | $ 725 | $ 826 |
Subsidiary Guarantors - Cond116
Subsidiary Guarantors - Condensed Consolidating Balance Sheet - Additional Information (Details) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Treasury stock | ||
Treasury stock, shares | 22,602 | 22,602 |
Class A common stock | ||
Common stock | ||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares issued | 30,573,509 | 12,672,260 |
Common Stock, shares outstanding | 30,550,907 | 12,649,658 |
Class B common stock | ||
Common stock | ||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares issued | 31,273,130 | 36,719,499 |
Common Stock, shares outstanding | 31,273,130 | 36,719,499 |
JEI (Parent) | ||
Treasury stock | ||
Treasury stock, shares | 22,602 | 22,602 |
JEI (Parent) | Class A common stock | ||
Common stock | ||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares issued | 30,573,509 | 12,672,260 |
Common Stock, shares outstanding | 30,550,907 | 12,649,658 |
JEI (Parent) | Class B common stock | ||
Common stock | ||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares issued | 31,273,130 | 36,719,499 |
Common Stock, shares outstanding | 31,273,130 | 36,719,499 |
Subsidiary Guarantors - Cond117
Subsidiary Guarantors - Condensed Consolidating Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating revenues | |||
Oil and gas sales | $ 194,555 | $ 378,401 | $ 258,063 |
Other revenues | 2,844 | 2,196 | 1,106 |
Total operating revenues | 197,399 | 380,597 | 259,169 |
Operating costs and expenses | |||
Lease operating | 41,027 | 37,760 | 25,129 |
Production and ad valorem taxes | 12,130 | 22,556 | 15,517 |
Exploration | 6,551 | 3,453 | 16,125 |
Depletion, depreciation and amortization | 205,498 | 181,669 | 114,136 |
Accretion of ARO liability | 1,087 | 770 | 608 |
General and administrative | 33,388 | 25,763 | 31,902 |
Other operating | 4,188 | ||
Total operating expenses | 303,869 | 271,971 | 203,417 |
Operating income (loss) | (106,470) | 108,626 | 55,752 |
Other income (expense) | |||
Interest expense | (61,289) | (38,805) | (27,409) |
Net gain (loss) on commodity derivatives | 158,753 | 189,641 | (2,566) |
Other income (expense) | (2,852) | (7,624) | (3,443) |
Other income (expense), net | 94,612 | 143,212 | (33,418) |
Income (loss) before income tax | (11,858) | 251,838 | 22,334 |
Income tax provision (benefit) | |||
Current | 113 | 53 | 85 |
Deferred | (2,894) | 26,165 | (156) |
Total income tax provision (benefit) | (2,781) | 26,218 | (71) |
Net income (loss) | (9,077) | 225,620 | 22,405 |
Net income (loss) attributable to non-controlling interests | (6,696) | 184,484 | 24,591 |
Net income (loss) attributable to controlling interests | (2,381) | 41,136 | (2,186) |
Eliminations | |||
Other income (expense) | |||
Equity interest in income | 4,728 | (63,197) | 3,400 |
Income tax provision (benefit) | |||
Net income (loss) | 4,728 | (63,197) | 3,400 |
Net income (loss) attributable to non-controlling interests | (6,696) | 184,484 | 24,591 |
JEI (Parent) | |||
Other income (expense) | |||
Other income (expense) | 1,984 | ||
Other income (expense), net | 1,984 | ||
Income (loss) before income tax | 1,984 | ||
Equity interest in income | (4,728) | 63,197 | (3,400) |
Income tax provision (benefit) | |||
Current | 53 | 85 | |
Deferred | (363) | 22,008 | (1,299) |
Total income tax provision (benefit) | (363) | 22,061 | (1,214) |
Net income (loss) | (2,381) | 41,136 | (2,186) |
Net income (loss) attributable to controlling interests | (2,381) | 41,136 | (2,186) |
Issuers | |||
Operating revenues | |||
Other revenues | 1,960 | 1,154 | 469 |
Total operating revenues | 1,960 | 1,154 | 469 |
Operating costs and expenses | |||
General and administrative | 13,565 | 4,493 | 4,154 |
Total operating expenses | 13,565 | 4,493 | 4,154 |
Operating income (loss) | (11,605) | (3,339) | (3,685) |
Other income (expense) | |||
Interest expense | (59,991) | (37,295) | (26,288) |
Net gain (loss) on commodity derivatives | 158,753 | 189,641 | (2,566) |
Other income (expense) | (4,832) | (7,921) | (3,365) |
Other income (expense), net | 93,930 | 144,425 | (32,219) |
Income (loss) before income tax | 82,325 | 141,086 | (35,904) |
Income tax provision (benefit) | |||
Current | 113 | ||
Deferred | (2,531) | 4,157 | 1,143 |
Total income tax provision (benefit) | (2,418) | 4,157 | 1,143 |
Net income (loss) | 84,743 | 136,929 | (37,047) |
Guarantor Subsidiaries | |||
Operating revenues | |||
Oil and gas sales | 194,555 | 378,401 | 258,063 |
Other revenues | 884 | 1,042 | 637 |
Total operating revenues | 195,439 | 379,443 | 258,700 |
Operating costs and expenses | |||
Lease operating | 41,027 | 37,760 | 25,129 |
Production and ad valorem taxes | 12,130 | 22,556 | 15,517 |
Exploration | 6,551 | 3,453 | 16,125 |
Depletion, depreciation and amortization | 205,407 | 181,578 | 114,046 |
Accretion of ARO liability | 1,087 | 770 | 608 |
General and administrative | 19,707 | 21,181 | 27,490 |
Other operating | 4,188 | ||
Total operating expenses | 290,097 | 267,298 | 198,915 |
Operating income (loss) | (94,658) | 112,145 | 59,785 |
Other income (expense) | |||
Interest expense | (1,298) | (1,510) | (1,121) |
Other income (expense) | (4) | 297 | 41 |
Other income (expense), net | (1,302) | (1,213) | (1,080) |
Income (loss) before income tax | (95,960) | 110,932 | 58,705 |
Income tax provision (benefit) | |||
Net income (loss) | (95,960) | 110,932 | 58,705 |
Non-Guarantor Subsidiaries | |||
Operating costs and expenses | |||
Depletion, depreciation and amortization | 91 | 91 | 90 |
General and administrative | 116 | 89 | 258 |
Total operating expenses | 207 | 180 | 348 |
Operating income (loss) | (207) | (180) | (348) |
Other income (expense) | |||
Other income (expense) | (119) | ||
Other income (expense), net | (119) | ||
Income (loss) before income tax | (207) | (180) | (467) |
Income tax provision (benefit) | |||
Net income (loss) | $ (207) | $ (180) | $ (467) |
Subsidiary Guarantors - Cond118
Subsidiary Guarantors - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net income (loss) | $ (9,077) | $ 225,620 | $ 22,405 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | 78,107 | 39,803 | 126,168 |
Net cash provided by operations | 69,030 | 265,423 | 148,573 |
Cash flows from investing activities | |||
Additions to oil and gas properties | (311,305) | (474,619) | (197,618) |
Acquisition of properties | (178,173) | ||
Net adjustments to purchase price of properties acquired | 15,709 | ||
Proceeds from sales of assets | 41 | 448 | 1,607 |
Acquisition of other property, plant and equipment | (1,101) | (1,683) | (1,634) |
Current period settlements of matured derivative contracts | 144,145 | (3,654) | 7,586 |
Change in restricted cash | (181) | (104) | (45) |
Net cash used in investing | (168,401) | (463,903) | (368,277) |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt | 85,000 | 170,000 | 220,000 |
Repayment under long-term debt | (335,000) | (468,000) | (172,000) |
Proceeds from senior notes | 236,475 | 500,000 | |
Purchase of treasury stock | (358) | ||
Payment of debt issuance costs | (1,556) | (13,416) | (683) |
Proceeds from sale of common stock | 122,779 | 172,481 | |
Net cash provided by financing | 107,698 | 188,226 | 219,798 |
Net increase (decrease) in cash | 8,327 | (10,254) | 94 |
Cash | |||
Beginning of period | 13,566 | 23,820 | 23,726 |
End of period | 21,893 | 13,566 | 23,820 |
Eliminations | |||
Cash flows from operating activities | |||
Net income (loss) | 4,728 | (63,197) | 3,400 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | (4,728) | 63,197 | (3,400) |
Cash flows from investing activities | |||
Investment in subsidiary | 172,481 | ||
Net cash used in investing | 172,481 | ||
Cash flows from financing activities | |||
Proceeds from investment in JEI | (172,481) | ||
Net cash provided by financing | (172,481) | ||
JEI (Parent) | |||
Cash flows from operating activities | |||
Net income (loss) | (2,381) | 41,136 | (2,186) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | (120,398) | (40,778) | 2,286 |
Net cash provided by operations | (122,779) | 358 | 100 |
Cash flows from investing activities | |||
Investment in subsidiary | (172,481) | ||
Net cash used in investing | (172,481) | ||
Cash flows from financing activities | |||
Purchase of treasury stock | (358) | ||
Proceeds from sale of common stock | 122,779 | 172,481 | |
Net cash provided by financing | 122,779 | (358) | 172,481 |
Net increase (decrease) in cash | 100 | ||
Cash | |||
Beginning of period | 100 | 100 | |
End of period | 100 | 100 | 100 |
Issuers | |||
Cash flows from operating activities | |||
Net income (loss) | 84,743 | 136,929 | (37,047) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | (202,359) | (326,859) | (189,393) |
Net cash provided by operations | (117,616) | (189,930) | (226,440) |
Cash flows from investing activities | |||
Current period settlements of matured derivative contracts | 144,145 | (3,654) | 7,586 |
Net cash used in investing | 144,145 | (3,654) | 7,586 |
Cash flows from financing activities | |||
Proceeds from investment in JEI | 172,481 | ||
Proceeds from issuance of long-term debt | 85,000 | 170,000 | 220,000 |
Repayment under long-term debt | (335,000) | (468,000) | (172,000) |
Proceeds from senior notes | 236,475 | 500,000 | |
Payment of debt issuance costs | (1,556) | (13,416) | (683) |
Net cash provided by financing | (15,081) | 188,584 | 219,798 |
Net increase (decrease) in cash | 11,448 | (5,000) | 944 |
Cash | |||
Beginning of period | 1,000 | 6,000 | 5,056 |
End of period | 12,448 | 1,000 | 6,000 |
Guarantor Subsidiaries | |||
Cash flows from operating activities | |||
Net income (loss) | (95,960) | 110,932 | 58,705 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | 405,395 | 344,103 | 315,942 |
Net cash provided by operations | 309,435 | 455,035 | 374,647 |
Cash flows from investing activities | |||
Additions to oil and gas properties | (311,305) | (474,619) | (197,618) |
Acquisition of properties | (178,173) | ||
Net adjustments to purchase price of properties acquired | 15,709 | ||
Proceeds from sales of assets | 41 | 448 | 963 |
Acquisition of other property, plant and equipment | (1,101) | (1,683) | (724) |
Change in restricted cash | (181) | (104) | (45) |
Net cash used in investing | (312,546) | (460,249) | (375,597) |
Cash flows from financing activities | |||
Net increase (decrease) in cash | (3,111) | (5,214) | (950) |
Cash | |||
Beginning of period | 12,436 | 17,650 | 18,600 |
End of period | 9,325 | 12,436 | 17,650 |
Non-Guarantor Subsidiaries | |||
Cash flows from operating activities | |||
Net income (loss) | (207) | (180) | (467) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | 197 | 140 | 733 |
Net cash provided by operations | (10) | (40) | 266 |
Cash flows from investing activities | |||
Proceeds from sales of assets | 644 | ||
Acquisition of other property, plant and equipment | (910) | ||
Net cash used in investing | (266) | ||
Cash flows from financing activities | |||
Net increase (decrease) in cash | (10) | (40) | |
Cash | |||
Beginning of period | 30 | 70 | 70 |
End of period | $ 20 | $ 30 | $ 70 |