Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 07, 2014 | Aug. 02, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Athlon Energy Inc. | ' | ' |
Entity Central Index Key | '0001574648 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
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 | 'Non-accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $410,526,324 |
Entity Common Stock, Shares Outstanding | ' | 82,129,089 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $113,025 | $8,871 |
Accounts receivable | 48,238 | 24,501 |
Derivatives, at fair value | ' | 2,246 |
Inventory | 928 | 1,022 |
Deferred taxes | 380 | ' |
Other | 1,166 | 2,486 |
Total current assets | 163,737 | 39,126 |
Oil and natural gas properties and equipment, at cost - full cost method: | ' | ' |
Evaluated, including wells and related equipment | 1,244,178 | 788,571 |
Unevaluated | 89,859 | 89,860 |
Accumulated depletion, depreciation, and amortization | -160,779 | -73,824 |
Oil and natural gas properties and equipment, net | 1,173,258 | 804,607 |
Derivatives, at fair value | 2,330 | 2,854 |
Debt issuance costs | 14,679 | 4,418 |
Other | 1,447 | 1,293 |
Total assets | 1,355,451 | 852,298 |
Accounts payable: | ' | ' |
Trade | 459 | 3,170 |
Affiliate | ' | 935 |
Accrued liabilities: | ' | ' |
Lease operating | 6,563 | 3,858 |
Production, severance, and ad valorem taxes | 2,550 | 1,307 |
Development capital | 68,059 | 39,483 |
Interest | 7,790 | 834 |
Derivatives, at fair value | 8,354 | 592 |
Revenue payable | 20,513 | 9,330 |
Deferred taxes | ' | 58 |
Other | 4,035 | 1,808 |
Total current liabilities | 118,323 | 61,375 |
Derivatives, at fair value | ' | 519 |
Asset retirement obligations, net of current portion | 6,795 | 5,049 |
Long-term debt | 500,000 | 362,000 |
Deferred taxes | 92,397 | 2,340 |
Other | 101 | 138 |
Total liabilities | 717,616 | 431,421 |
Commitments and contingencies | ' | ' |
Equity: | ' | ' |
Partners' equity | ' | 420,877 |
Preferred stock, $.01 par value, at December 31, 2013, 50,000,000 shares authorized, none issued and outstanding | ' | ' |
Common stock, $.01 par value, at December 31, 2013, 500,000,000 shares authorized, 82,129,089 issued and outstanding | 821 | ' |
Additional paid-in capital | 593,943 | ' |
Retained earnings | 32,283 | ' |
Total stockholders' equity | 627,047 | ' |
Noncontrolling interest | 10,788 | ' |
Total equity | 637,835 | 420,877 |
Total liabilities and equity | $1,355,451 | $852,298 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS | ' |
Preferred stock, par value (in dollars per share) | $0.01 |
Preferred stock, shares authorized | 50,000,000 |
Preferred stock, shares issued | 0 |
Preferred stock, shares outstanding | 0 |
Common stock, par value (in dollars per share) | $0.01 |
Common stock, shares authorized | 500,000,000 |
Common stock, shares issued | 82,129,089 |
Common stock, shares outstanding | 82,129,089 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Oil | $252,606 | $128,081 | $51,193 |
Natural gas | 16,620 | 8,415 | 3,521 |
Natural gas liquids | 30,147 | 20,615 | 10,967 |
Total revenues | 299,373 | 157,111 | 65,681 |
Production: | ' | ' | ' |
Lease operating | 33,776 | 25,503 | 13,328 |
Production, severance, and ad valorem taxes | 19,048 | 10,438 | 4,727 |
Processing, gathering, and overhead | 222 | 84 | 60 |
Depletion, depreciation, and amortization | 87,171 | 54,456 | 19,747 |
General and administrative | 21,331 | 9,678 | 7,724 |
Contract termination fee | 2,408 | ' | ' |
Acquisition costs | 421 | 876 | 9,519 |
Derivative fair value loss (gain) | 18,115 | -9,293 | 7,959 |
Accretion of discount on asset retirement obligations | 675 | 478 | 344 |
Total expenses | 183,167 | 92,220 | 63,408 |
Operating income | 116,206 | 64,891 | 2,273 |
Other income (expenses): | ' | ' | ' |
Interest | -36,669 | -9,951 | -2,945 |
Other | 35 | 2 | 13 |
Total other expenses | -36,634 | -9,949 | -2,932 |
Income (loss) before income taxes | 79,572 | 54,942 | -659 |
Income tax provision | 19,150 | 1,928 | 470 |
Consolidated net income (loss) | 60,422 | 53,014 | -1,129 |
Less: net income attributable to noncontrolling interest | 1,359 | ' | ' |
Net income (loss) attributable to stockholders | $59,063 | $53,014 | ($1,129) |
Net income (loss) per common share: | ' | ' | ' |
Basic (in dollars per share) | $0.80 | $0.80 | ($0.02) |
Diluted (in dollars per share) | $0.80 | $0.78 | ($0.02) |
Weighted average common shares outstanding: | ' | ' | ' |
Basic (in shares) | 72,915 | 66,340 | 66,340 |
Diluted (in shares) | 74,771 | 68,196 | 66,340 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $) | Total | Total Stockholders' Equity | Partners' Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Noncontrolling Interest |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2010 | ' | ' | $24,499 | ' | ' | ' | ' |
Balance at Dec. 31, 2010 | 24,499 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' | ' | ' |
Capital contributions | 303,976 | ' | 303,976 | ' | ' | ' | ' |
Equity-based compensation prior to corporate reorganization | 106 | ' | 106 | ' | ' | ' | ' |
Net income (loss) prior to corporate reorganization | -1,129 | ' | -1,129 | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | ' | ' | 327,452 | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 327,452 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' | ' | ' |
Capital contributions | 40,166 | ' | 40,166 | ' | ' | ' | ' |
Equity-based compensation prior to corporate reorganization | 245 | ' | 245 | ' | ' | ' | ' |
Net income (loss) prior to corporate reorganization | 53,014 | ' | 53,014 | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 420,877 | ' | 420,877 | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 420,877 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' | ' | ' |
Capital contributions | 1,500 | ' | 1,500 | ' | ' | ' | ' |
Equity-based compensation prior to corporate reorganization | 89 | ' | 89 | ' | ' | ' | ' |
Net income (loss) prior to corporate reorganization | 26,780 | ' | 26,780 | ' | ' | ' | ' |
Distributions to Athlon Holdings LP's Class A limited partners | -75,000 | ' | -75,000 | ' | ' | ' | ' |
Common stock issued in corporate reorganization | ' | 364,817 | -374,246 | 663 | 364,154 | ' | 9,429 |
Common stock issued in corporate reorganization (in shares) | ' | ' | ' | 66,340,000 | ' | ' | ' |
Tax impact of corporate reorganization | -71,605 | -71,605 | ' | ' | -71,605 | ' | ' |
Shares of common stock sold in initial public offering, net of offering costs | 295,656 | 295,656 | ' | 158 | 295,498 | ' | ' |
Shares of common stock sold in initial public offering, net of offering costs (in shares) | ' | ' | ' | 15,789,000 | ' | ' | ' |
Equity-based compensation subsequent to corporate reorganization | 5,896 | 5,896 | ' | ' | 5,896 | ' | ' |
Consolidated net income subsequent to corporate reorganization | 33,642 | 32,283 | ' | ' | ' | 32,283 | 1,359 |
Balance at Dec. 31, 2013 | $637,835 | $627,047 | ' | $821 | $593,943 | $32,283 | $10,788 |
Balance (in shares) at Dec. 31, 2013 | 82,129,089 | ' | ' | 82,129,000 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Consolidated net income (loss) | $60,422 | $53,014 | ($1,129) |
Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depletion, depreciation, and amortization | 87,171 | 54,456 | 19,747 |
Deferred taxes | 18,015 | 1,928 | 470 |
Non-cash derivative loss (gain) | 10,013 | -9,947 | 7,509 |
Equity-based compensation | 5,307 | 152 | 106 |
Other | 5,575 | 1,758 | 963 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ' | ' | ' |
Accounts receivable | -24,534 | -7,320 | -16,963 |
Other current assets | -71 | -337 | -1,691 |
Other assets | ' | ' | -16 |
Accounts payable | -2,583 | -2,140 | 537 |
Accrued interest | 6,956 | 578 | 256 |
Revenue payable | 10,681 | 3,620 | 5,710 |
Derivatives | ' | ' | -1,950 |
Other current liabilities | 6,685 | -460 | 5,323 |
Net cash provided by operating activities | 183,637 | 95,302 | 18,872 |
Cash flows from investing activities: | ' | ' | ' |
Acquisitions of oil and natural gas properties | -54,136 | -80,602 | -414,759 |
Development of oil and natural gas properties | -369,946 | -266,235 | -57,457 |
Monetization of put options | ' | ' | 7,625 |
Other | -664 | -422 | -884 |
Net cash used in investing activities | -424,746 | -347,259 | -465,475 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from long-term debt, net of issuance costs | 628,992 | 519,672 | 198,651 |
Payments on long-term debt | -505,926 | -331,000 | -31,000 |
Distributions to Athlon Holdings LP's Class A limited partners | -75,000 | ' | ' |
Shares of common stock sold in initial public offering, net of offering costs | 295,697 | ' | ' |
Capital contributions | 1,500 | 40,166 | 303,976 |
Other | ' | -40 | ' |
Net cash provided by financing activities | 345,263 | 228,798 | 471,627 |
Increase (decrease) in cash and cash equivalents | 104,154 | -23,159 | 25,024 |
Cash and cash equivalents, beginning of period | 8,871 | 32,030 | 7,006 |
Cash and cash equivalents, end of period | $113,025 | $8,871 | $32,030 |
Formation_of_the_Company_and_D
Formation of the Company and Description of Business | 12 Months Ended |
Dec. 31, 2013 | |
Formation of the Company and Description of Business | ' |
Formation of the Company and Description of Business | ' |
Note 1. Formation of the Company and Description of Business | |
Athlon Energy Inc. (together with its subsidiaries, "Athlon"), a Delaware corporation, was formed on April 1, 2013 and is an independent exploration and production company focused on the acquisition, development, and exploitation of unconventional oil and liquids-rich natural gas reserves in the Permian Basin. | |
On April 26, 2013, Athlon Holdings LP (together with its subsidiaries, "Holdings"), a Delaware limited partnership, underwent a corporate reorganization and as a result, Holdings became a majority-owned subsidiary of Athlon. Holdings is considered Athlon's accounting predecessor. Athlon operates and controls all of the business and affairs of Holdings and consolidates its financial results. Holdings is not subject to federal income taxes. On the date of the corporate reorganization, a corresponding "first day" net deferred tax liability of approximately $71.6 million was recorded for differences between the tax and book basis of Athlon's assets and liabilities. The offset of the deferred tax liability was recorded to additional paid-in capital. | |
Prior to the corporate reorganization, Holdings was a party to a limited partnership agreement with its management group and Apollo Athlon Holdings, L.P. ("Apollo"), which is an affiliate of Apollo Global Management, LLC. Prior to the corporate reorganization, Apollo Investment Fund VII, L.P. and its parallel funds (the "Apollo Funds") and Holdings' management team and certain employees owned all of the Class A limited partner interests in Holdings and Holdings' management team and certain employees owned all of the Class B limited partner interests in Holdings. | |
In the corporate reorganization, the Apollo Funds entered into a number of distribution and contribution transactions pursuant to which the Apollo Funds exchanged their Class A limited partner interests in Holdings for common stock of Athlon. The remaining holders of Class A limited partner interests in Holdings did not exchange their interests in the reorganization transactions. In addition, the holders of the Class B limited partner interests in Holdings exchanged their interests for common stock of Athlon subject to the same conditions and vesting terms. | |
Initial Public Offering | |
On August 7, 2013, Athlon completed its initial public offering ("IPO") of 15,789,474 shares of its common stock at $20.00 per share and received net proceeds of approximately $295.7 million, after deducting underwriting discounts and commissions and offering expenses. Upon closing of the IPO, the limited partnership agreement of Holdings was amended and restated to, among other things, modify Holdings' capital structure by replacing its different classes of interests with a single new class of units, the "New Holdings Units". Holdings' management team and certain employees that held Class A limited partner interests now own 1,855,563 New Holdings Units and entered into an exchange agreement under which (subject to the terms of the exchange agreement) they have the right to exchange their New Holdings Units for shares of common stock of Athlon on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends, and reclassifications. All other New Holdings Units are held by Athlon. Athlon used the net proceeds from the IPO (i) to reduce outstanding borrowings under its credit agreement, (ii) to provide additional liquidity for use in its drilling program, and (iii) for general corporate purposes. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
Note 2. Summary of Significant Accounting Policies | |||||||||||||||||
Principles of Consolidation | |||||||||||||||||
Athlon's consolidated financial statements include the accounts of its wholly owned and majority-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
Preparing financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities in the consolidated financial statements. Although management believes these estimates are reasonable, actual results could differ materially from those estimates. | |||||||||||||||||
Estimates made in preparing these consolidated financial statements include, among other things, estimates of the proved oil and natural gas reserve volumes used in calculating depletion, depreciation, and amortization ("DD&A") expense; operating costs accrued; volumes and prices for revenues accrued; valuation of derivative instruments; and the timing and amount of future abandonment costs used in calculating asset retirement obligations. Changes in the assumptions used could have a significant impact on results in future periods. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents include demand deposits and funds invested in highly liquid instruments with original maturities of three months or less and typically exceed federally insured limits. | |||||||||||||||||
The following table sets forth supplemental disclosures of cash flow information for the periods indicated: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in thousands) | |||||||||||||||||
Cash paid during the period for: | |||||||||||||||||
Interest | $ | 25,220 | $ | 8,326 | $ | 2,395 | |||||||||||
Income taxes | — | — | — | ||||||||||||||
Accounts Receivable | |||||||||||||||||
Accounts receivable, which are primarily from the sale of oil, natural gas, and natural gas liquids ("NGLs"), is accrued based on estimates of the sales and prices Athlon believes it will receive. Athlon routinely reviews outstanding balances, assesses the financial strength of its customers, and records a reserve for amounts not expected to be fully recovered. Actual balances are not applied against the reserve until substantially all collection efforts have been exhausted. At December 31, 2013 and 2012, Athlon did not have an allowance for doubtful accounts. | |||||||||||||||||
Inventory | |||||||||||||||||
Inventory includes materials and supplies that Athlon intends to deploy to various development activities and oil in tanks at the lease, both of which are stated at the lower of cost (determined on an average basis) or market. Oil in tanks at the lease is carried at an amount equal to its costs to produce. Inventory consisted of the following as of the dates indicated: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Materials and supplies | $ | 429 | $ | 670 | |||||||||||||
Oil inventory | 499 | 352 | |||||||||||||||
| | | | | | | | ||||||||||
Total inventory | $ | 928 | $ | 1,022 | |||||||||||||
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| | | | | | | | ||||||||||
Oil and Natural Gas Properties | |||||||||||||||||
Athlon applies the provisions of the "Extractive Activities—Oil and Gas" topic of the Financial Accounting Standards Board's (the "FASB") Accounting Standards Codification (the "ASC"). Athlon uses the full cost method of accounting for its oil and natural gas properties. Under this method, costs directly associated with the acquisition, exploration, and development of reserves are capitalized into a full cost pool. Capitalized costs are amortized using a unit-of-production method. Under this method, the provision for DD&A is computed at the end of each period by multiplying total production for the period by a depletion rate. The depletion rate is determined by dividing the total unamortized cost base plus future development costs by net equivalent proved reserves at the beginning of the period. | |||||||||||||||||
Costs associated with unevaluated properties are excluded from the amortizable cost base until a determination has been made as to the existence of proved reserves. Unevaluated properties are reviewed at the end of each quarter to determine whether the costs incurred should be reclassified to the full cost pool and, thereby, subjected to amortization. The costs associated with unevaluated properties primarily consist of acquisition and leasehold costs as well as development costs for wells in progress for which a determination of the existence of proved reserves has not been made. These costs are transferred to the amortization base once a determination is made whether or not proved reserves can be assigned to the property, upon impairment of a lease, or immediately upon determination that the well is unsuccessful. Costs of seismic data that cannot be directly associated to specific properties are included in the full cost pool as incurred; otherwise, they are allocated to various unevaluated leaseholds and transferred to the amortization base with the associated leasehold costs on a specific project basis. | |||||||||||||||||
Independent petroleum engineers estimate Athlon's proved reserves annually as of December 31. This results in a new DD&A rate which Athlon uses for the preceding fourth quarter after adjusting for fourth quarter production. Athlon internally estimates reserve additions and reclassifications of reserves from unproved to proved at the end of the first, second, and third quarters for use in determining a DD&A rate for the respective quarter. | |||||||||||||||||
Sales and abandonments of oil and natural gas properties being amortized are accounted for as adjustments to the full cost pool, with no gain or loss recognized, unless the adjustments would significantly alter the relationship between capitalized costs and proved reserves. A significant alteration would not ordinarily be expected to occur upon the sale of reserves involving less than 25% of the reserve quantities of a cost center. | |||||||||||||||||
Natural gas volumes are converted to barrels of oil equivalent ("BOE") at the rate of six thousand cubic feet ("Mcf") of natural gas to one barrel ("Bbl") of oil. This convention is not an equivalent price basis and there may be a large difference in value between an equivalent volume of oil versus an equivalent volume of natural gas. | |||||||||||||||||
Athlon capitalizes interest on expenditures made in connection with exploratory projects that are not subject to current amortization. Interest is capitalized only for the period that activities are in progress to bring these projects to their intended use. Capitalized interest cannot exceed gross interest expense. During 2013 and 2012, Athlon capitalized approximately $0.3 million and $0.2 million, respectively, of interest expense. During 2011, Athlon did not capitalize any interest expense. | |||||||||||||||||
Unevaluated properties are assessed periodically, at least annually, for possible impairment. Properties are assessed on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of various factors, including, but not limited to: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results, and economic viability of development if proved reserves are assigned. During any period in which these factors indicate impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to amortization. | |||||||||||||||||
Under the full cost method of accounting, total capitalized costs of oil and natural gas properties, net of accumulated DD&A, less related deferred income taxes may not exceed an amount equal to the present value of future net revenues from proved reserves, discounted at 10% per annum, plus the lower of cost or fair value of unevaluated properties, plus estimated salvage value, less the related tax effects (the "ceiling limitation"). A ceiling limitation is calculated at the end of each quarter. If total capitalized costs, net of accumulated DD&A, less related deferred income taxes are greater than the ceiling limitation, a write-down or impairment of the full cost pool is required. A write-down of the carrying value of the full cost pool is a non-cash charge that reduces earnings and impacts equity in the period of occurrence and typically results in lower DD&A expense in future periods. Once incurred, a write-down cannot be reversed at a later date. | |||||||||||||||||
The ceiling limitation calculation is prepared using the 12-month first-day-of-the-month oil and natural gas average prices, as adjusted for basis or location differentials, held constant over the life of the reserves ("net wellhead prices"). If applicable, these net wellhead prices would be further adjusted to include the effects of any fixed price arrangements for the sale of oil and natural gas. Athlon uses commodity derivative contracts to mitigate the risk against the volatility of oil and natural gas prices. Commodity derivative contracts that qualify and are designated as cash flow hedges are included in estimated future cash flows. Athlon has not designated any of its commodity derivative contracts as cash flow hedges and therefore has excluded commodity derivative contracts in estimating future cash flows. The future cash outflows associated with future development or abandonment of wells are included in the computation of the discounted present value of future net revenues for purposes of the ceiling limitation calculation. | |||||||||||||||||
Amounts shown in the accompanying Consolidated Balance Sheets as "Evaluated, including wells and related equipment" consisted of the following as of the dates indicated: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Evalauted leasehold costs | $ | 448,689 | $ | 376,271 | |||||||||||||
Wells and related equipment—completed | 748,900 | 379,036 | |||||||||||||||
Wells and related equipment—in process | 46,589 | 33,264 | |||||||||||||||
| | | | | | | | ||||||||||
Total evaluated | $ | 1,244,178 | $ | 788,571 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Asset Retirement Obligations | |||||||||||||||||
Athlon applies the provisions of the "Asset Retirement and Environmental Obligations" topic of the ASC. Athlon has obligations as a result of lease agreements and enacted laws to remove its equipment and restore land at the end of production operations. These asset retirement obligations are primarily associated with plugging and abandoning wells and land remediation. At the time a drilled well is completing or a well is acquired, Athlon records a separate liability for the estimated fair value of its asset retirement obligations, with an offsetting increase to the related oil and natural gas asset representing asset retirement costs in the accompanying Consolidated Balance Sheets. The cost of the related oil and natural gas asset, including the asset retirement cost, is included in Athlon's full cost pool. The estimated fair value of an asset retirement obligation is the present value of the expected future cash outflows required to satisfy the asset retirement obligations discounted at Athlon's credit-adjusted, risk-free interest rate at the time the liability is incurred. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. | |||||||||||||||||
Inherent to the present-value calculation are numerous estimates, assumptions, and judgments, including, but not limited to: the ultimate settlement amounts, inflation factors, credit-adjusted risk-free rates, timing of settlement, and changes in the legal, regulatory, environmental, and political environments. To the extent future revisions to these assumptions affect the present value of the abandonment liability, Athlon makes corresponding adjustments to both the asset retirement obligation and the related oil and natural gas property asset balance. These revisions result in prospective changes to DD&A expense and accretion of the discounted abandonment liability. Please read "Note 5. Asset Retirement Obligations" for additional information. | |||||||||||||||||
Equity-Based Compensation | |||||||||||||||||
Athlon accounts for equity-based compensation according to the "Share-Based Payment" topic of the ASC, which requires the recognition of compensation expense for equity-based awards over the requisite service period in an amount equal to the grant date fair value of the awards. Please read "Note 9. Employee Benefit Plans" for additional discussion of Athlon's employee benefit plans. | |||||||||||||||||
The "Share-Based Payment" topic of the ASC also requires that the benefits associated with the tax deductions in excess of recognized compensation cost, if any, be reported as a financing cash flow. This requirement reduces net operating cash flows and increases net financing cash flows. Athlon recognizes compensation costs related to awards with graded vesting on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. | |||||||||||||||||
Segment Reporting | |||||||||||||||||
Athlon only operates in the oil and natural gas exploration and production industry in the United States. All revenues are derived from customers located in the United States. | |||||||||||||||||
Major Customers / Concentration of Credit Risk | |||||||||||||||||
The following purchasers accounted for 10% or greater of the sales of production for the periods indicated and the corresponding outstanding accounts receivable balance as of the dates indicated: | |||||||||||||||||
Percentage of Total | Outstanding | ||||||||||||||||
Revenues for | Accounts | ||||||||||||||||
the Year Ended | Receivable Balance | ||||||||||||||||
December 31, | as of December 31, | ||||||||||||||||
Purchaser | 2013 | 2012 | 2011 | 2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||||||
Occidental Petroleum Corporation | 27 | % | 29 | % | 58 | % | $ | 11,673 | $ | 4,456 | |||||||
DCP Midstream | (a) | 12 | % | 13 | % | (a) | 2,604 | ||||||||||
High Sierra Crude Oil & Marketing, LLC(b) | 46 | % | 43 | % | 13 | % | 18,951 | 9,348 | |||||||||
(a) | |||||||||||||||||
Less than 10% for the period indicated. | |||||||||||||||||
(b) | |||||||||||||||||
Formerly Pecos Gathering & Marketing. | |||||||||||||||||
Income Taxes | |||||||||||||||||
Athlon accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax laws and rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. 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. | |||||||||||||||||
Athlon periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets, including net operating losses. In making this determination, Athlon considers all available positive and negative evidence and makes certain assumptions. Athlon considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends, and its outlook for future years. Athlon believes it is more likely than not that certain net operating losses can be carried forward and utilized. | |||||||||||||||||
In April 2013, Athlon effected a corporate reorganization. Holdings, Athlon's accounting predecessor, is a partnership not subject to federal income tax. Pursuant to the corporate reorganization, certain Class A limited partners and the Class B limited partners of Holdings exchanged their interests for shares of Athlon's common stock. Athlon's operations are now subject to federal income tax. The tax implications of the corporate reorganization and the tax impact of the conversion to operating as a taxable entity have been reflected in the accompanying consolidated financial statements. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
Revenues from the sale of oil, natural gas, and NGLs are recognized when they are realized or realizable and earned. Revenues are considered realized or realizable and earned when: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the seller's price to the buyer is fixed or determinable; and (iv) collectability is reasonably assured. Because final settlement of our hydrocarbon sales can take up to two months, sales volumes and prices are estimated and accrued using information available at the time the revenue is recorded. If Athlon's overproduced imbalance position (i.e., Athlon has cumulatively been over-allocated production) is greater than its share of remaining reserves, a liability would be recorded for the excess at period-end prices unless a different price is specified in the contract, in which case that price is used. At December 31, 2013 and 2012, Athlon did not have any natural gas imbalances. Revenue is not recognized for oil production in tanks, but the production is recorded as a current asset based on the cost to produce and included in "Inventory" in the accompanying Consolidated Balance Sheets. Transportation expenses are included in operating expenses and are insignificant. | |||||||||||||||||
Derivatives | |||||||||||||||||
Athlon uses various financial instruments for non-trading purposes to manage and reduce price volatility and other market risks associated with its oil production. These arrangements are structured to reduce Athlon's exposure to commodity price decreases, but they can also limit the benefit Athlon might otherwise receive from commodity price increases. Athlon's risk management activity is generally accomplished through over-the-counter commodity derivative contracts with large financial institutions, most of which are lenders under Athlon's credit agreement. | |||||||||||||||||
Athlon applies the provisions of the "Derivatives and Hedging" topic of the ASC, which requires each derivative instrument to be recorded in the accompanying Consolidated Balance Sheets at fair value. If a derivative has not been designated as a hedge or does not otherwise qualify for hedge accounting, it must be adjusted to fair value through earnings. Athlon elected not to designate its current portfolio of commodity derivative contracts as hedges for accounting purposes. Therefore, changes in fair value of these derivative instruments are recognized in earnings and included in "Derivative fair value loss (gain)" in the accompanying Consolidated Statements of Operations. | |||||||||||||||||
Athlon enters into commodity derivative contracts for the purpose of economically fixing the price of its anticipated oil production even though Athlon does not designate the derivatives as hedges for accounting purposes. Athlon classifies cash flows related to derivative contracts based on the nature and purpose of the derivative. As the derivative cash flows are considered an integral part of Athlon's oil and natural gas operations, they are classified as cash flows from operating activities in the accompanying Consolidated Statements of Cash Flows. | |||||||||||||||||
Noncontrolling Interest | |||||||||||||||||
As of December 31, 2013, management and certain employees owned approximately 2.2% of Holdings. Athlon owns 100% of Athlon Holdings GP LLC, which is Holdings' general partner. Considering the presumption of control, Athlon has fully consolidated the financial position, results of operations, and cash flows of Holdings. | |||||||||||||||||
As presented in the accompanying Consolidated Balance Sheets, "Noncontrolling interest" as of December 31, 2013 of approximately $10.8 million represents management and certain employees' 1,855,563 New Holdings Units that are exchangeable for shares of Athlon's common stock on a one-for-one basis. As presented in the accompanying Consolidated Statements of Operations, "Net income attributable to noncontrolling interest" for 2013 of approximately $1.4 million represents the net income of Holdings attributable to management and certain employees since April 26, 2013. | |||||||||||||||||
The following table summarizes the effects of changes in Athlon's partnership interest in Holdings on Athlon's equity for 2013 (in thousands): | |||||||||||||||||
Net income attributable to stockholders | $ | 59,063 | |||||||||||||||
| | | | | |||||||||||||
Transfer from noncontrolling interest: | |||||||||||||||||
Increase in Athlon's paid-in capital for corporate reorganization | 292,549 | ||||||||||||||||
Increase in Athlon's paid-in capital for issuance of 15,789,474 shares of common stock in initial public offering | 295,498 | ||||||||||||||||
| | | | | |||||||||||||
Net transfer from noncontrolling interest | 588,047 | ||||||||||||||||
| | | | | |||||||||||||
Change from net income attributable to stockholders and transfers from noncontrolling interest | $ | 647,110 | |||||||||||||||
| | | | | |||||||||||||
| | | | | |||||||||||||
Earnings Per Share | |||||||||||||||||
For purposes of calculating earnings per share ("EPS"), Athlon allocates net income (loss) to its shareholders and participating securities each quarter under the provisions of the "Earnings Per Share" topic of the ASC. Under the two-class method of calculating EPS, earnings are allocated to participating securities as if all the earnings for the period had been distributed. A participating security is any security that may participate in distributions with common shares. For purposes of calculating EPS, unvested restricted stock units are considered participating securities. Net income (loss) per common share is calculated by dividing the shareholders' interest in net income (loss), after deducting the interests of participating securities, by the weighted average common shares outstanding. | |||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||
In December 2011, the FASB issued Accounting Standards Update ("ASU") 2011-11, "Disclosures about Offsetting Assets and Liabilities" and in January 2013 issued ASU 2013-01, "Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities". These ASUs created new disclosure requirements regarding the nature of an entity's rights of offset and related arrangements associated with its derivative instruments, repurchase agreements, and securities lending transactions. Certain disclosures of the amounts of certain instruments subject to enforceable master netting arrangements are required, irrespective of whether the entity has elected to offset those instruments in the statement of financial position. These ASUs were effective retrospectively for annual reporting periods beginning on or after January 1, 2013. The adoption of these ASUs did not impact Athlon's financial position, results of operations, or liquidity. | |||||||||||||||||
No other new accounting pronouncements issued or effective from January 1, 2013 through the date of this Report, had or are expected to have a material impact on Athlon's consolidated financial statements. | |||||||||||||||||
Acquisitions
Acquisitions | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Acquisitions | ' | ||||
Acquisitions | ' | ||||
Note 3. Acquisitions | |||||
Element | |||||
On October 3, 2011, Athlon acquired certain oil and natural gas properties and related assets in the Permian Basin in West Texas from Element Petroleum, LP ("Element") for approximately $253.2 million in cash, which was financed through borrowings under Athlon's credit agreement and capital contributions from Holdings' partners. The operations of these properties have been included with those of Athlon from the date of acquisition. Athlon incurred approximately $6.4 million of transaction costs related to this acquisition, which are included in "Acquisition costs" in the accompanying Consolidated Statements of Operations. Of this amount, approximately $4.3 million was paid to Apollo. Please read "Note 12. Related Party Transactions" for additional discussion. | |||||
The allocation of the purchase price to the fair value of the assets acquired and liabilities assumed from Element was as follows (in thousands): | |||||
Proved properties, including wells and related equipment | $ | 130,527 | |||
Unproved properties | 123,107 | ||||
Other assets | 806 | ||||
| | | | | |
Total assets acquired | 254,440 | ||||
| | | | | |
Current liabilities | 831 | ||||
Asset retirement obligations | 393 | ||||
| | | | | |
Total liabilities assumed | 1,224 | ||||
| | | | | |
Fair value of net assets acquired | $ | 253,216 | |||
| | | | | |
| | | | | |
The following unaudited pro forma condensed financial data was derived from the historical financial statements of Athlon and from the accounting records of Element to give effect to the acquisition as if it had occurred on January 1, 2011. The unaudited pro forma condensed financial information has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Element acquisition taken place on January 1, 2011 and is not intended to be a projection of future results. | |||||
Year ended | |||||
December 31, 2011 | |||||
(in thousands, except | |||||
per share amounts) | |||||
Pro forma total revenues | $ | 89,618 | |||
| | | | | |
| | | | | |
Pro forma net income attributable to stockholders | $ | 9,777 | |||
| | | | | |
| | | | | |
Pro forma net income per common share: | |||||
Basic | $ | 0.15 | |||
Diluted | $ | 0.14 | |||
SandRidge | |||||
On January 6, 2011, Athlon acquired certain oil and natural gas properties and related assets in the Permian Basin in West Texas from SandRidge Exploration and Production, LLC ("SandRidge") for approximately $156.0 million in cash, which was financed through borrowings under Athlon's credit agreement and capital contributions from Holdings' partners. The operations of these properties have been included with those of Athlon from the date of acquisition. Athlon incurred $2.6 million of transaction costs related to this acquisition, which are included in "Acquisition costs" in the accompanying Consolidated Statements of Operations. Of this amount, approximately $2.3 million was paid to Apollo. Please read "Note 12. Related Party Transactions" for additional discussion. | |||||
The allocation of the purchase price to the fair value of the assets acquired and liabilities assumed from SandRidge was as follows (in thousands): | |||||
Proved properties, including wells and related equipment | $ | 158,157 | |||
Oil inventory | 637 | ||||
| | | | | |
Total assets acquired | 158,794 | ||||
Asset retirement obligations | 2,778 | ||||
| | | | | |
Fair value of net assets acquired | $ | 156,016 | |||
| | | | | |
| | | | | |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
Note 4. Fair Value Measurements | ||||||||||||||
The book values of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term nature of these instruments. Commodity derivative contracts are marked-to-market each quarter and are thus stated at fair value in the accompanying Consolidated Balance Sheets. As of December 31, 2013, the fair value of the senior notes was approximately $522.8 million using open market quotes ("Level 1" input). | ||||||||||||||
Commodity Derivative Contracts | ||||||||||||||
Commodity prices are often subject to significant volatility due to many factors that are beyond Athlon's control, including but not limited to: prevailing economic conditions, supply and demand of hydrocarbons in the marketplace, actions by speculators, and geopolitical events such as wars or natural disasters. Athlon manages oil price risk with swaps, which provide a fixed price for a notional amount of sales volumes. The following table summarizes Athlon's open commodity derivative contracts as of December 31, 2013: | ||||||||||||||
Period | Average | Weighted- | Asset | |||||||||||
Daily | Average | (Liability) | ||||||||||||
Swap | Swap | Fair Market | ||||||||||||
Volume | Price | Value | ||||||||||||
(Bbl) | (per Bbl) | (in thousands) | ||||||||||||
2014 | 7,950 | $ | 92.67 | $ | (8,354 | ) | ||||||||
2015 | 1,300 | 93.18 | 2,330 | |||||||||||
| | | | | | | | | | | ||||
$ | (6,024 | ) | ||||||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
In January 2011, Athlon terminated certain oil puts that were in place at December 31, 2010 and received net proceeds of approximately $7.6 million, which is reflected as "Monetization of put options" in the "Investing activities" section of the accompanying Consolidated Statements of Cash Flows. In the third quarter of 2011, Athlon entered into additional oil puts that included deferred premiums. These deferred premiums increased Athlon's interest expense by approximately $0.2 million during 2011. In October 2011, Athlon terminated the oil puts and entered into oil swaps that required the initial payment of premiums of approximately $2.0 million. | ||||||||||||||
Counterparty Risk. At December 31, 2013, Athlon had committed 10% or greater (in terms of fair market value) of its oil derivative contracts in asset positions from the following counterparties: | ||||||||||||||
Counterparty | Fair Market Value of | |||||||||||||
Oil Derivative | ||||||||||||||
Contracts | ||||||||||||||
Committed | ||||||||||||||
(in thousands) | ||||||||||||||
BNP Paribas | $ | 1,082 | ||||||||||||
Athlon does not require collateral from its counterparties for entering into financial instruments, so in order to mitigate the credit risk associated with financial instruments, Athlon enters into master netting agreements with its counterparties. The master netting agreement is a standardized, bilateral contract between a given counterparty and Athlon. Instead of treating each financial transaction between the counterparty and Athlon separately, the master netting agreement enables the counterparty and Athlon to aggregate all financial trades and treat them as a single agreement. This arrangement is intended to benefit Athlon in two ways: (i) default by a counterparty under a single financial trade can trigger rights to terminate all financial trades with such counterparty; and (ii) netting of settlement amounts reduces Athlon's credit exposure to a given counterparty in the event of close-out. Athlon's accounting policy is to not offset fair value amounts between different counterparties for derivative instruments in the accompanying Consolidated Balance Sheets. | ||||||||||||||
Tabular Disclosures of Fair Value Measurements | ||||||||||||||
The following table summarizes the fair value of Athlon's derivative instruments not designated as hedging instruments as of the dates indicated: | ||||||||||||||
Balance Sheet Location | Oil | Commodity | Total | |||||||||||
Commodity | Derivatives | Commodity | ||||||||||||
Derivatives | Netting(a) | Derivatives | ||||||||||||
(in thousands) | ||||||||||||||
As of December 31, 2013 | ||||||||||||||
Assets | ||||||||||||||
Derivatives—current | $ | 143 | $ | (143 | ) | $ | — | |||||||
Derivatives—noncurrent | 2,330 | — | 2,330 | |||||||||||
| | | | | | | | | | | ||||
Total assets | 2,473 | (143 | ) | 2,330 | ||||||||||
| | | | | | | | | | | ||||
Liabilities | ||||||||||||||
Derivatives—current | (8,497 | ) | 143 | (8,354 | ) | |||||||||
Derivatives—noncurrent | — | — | — | |||||||||||
| | | | | | | | | | | ||||
Total liabilities | (8,497 | ) | 143 | (8,354 | ) | |||||||||
| | | | | | | | | | | ||||
Net liabilities | $ | (6,024 | ) | $ | — | $ | (6,024 | ) | ||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
As of December 31, 2012 | ||||||||||||||
Assets | ||||||||||||||
Derivatives—current | $ | 3,386 | $ | (1,140 | ) | $ | 2,246 | |||||||
Derivatives—noncurrent | 3,265 | (411 | ) | 2,854 | ||||||||||
| | | | | | | | | | | ||||
Total assets | 6,651 | (1,551 | ) | 5,100 | ||||||||||
| | | | | | | | | | | ||||
Liabilities | ||||||||||||||
Derivatives—current | (1,732 | ) | 1,140 | (592 | ) | |||||||||
Derivatives—noncurrent | (930 | ) | 411 | (519 | ) | |||||||||
| | | | | | | | | | | ||||
Total liabilities | (2,662 | ) | 1,551 | (1,111 | ) | |||||||||
| | | | | | | | | | | ||||
Net assets | $ | 3,989 | $ | — | $ | 3,989 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
(a) | ||||||||||||||
Represents counterparty netting under master netting agreements, which allow for netting of commodity derivative contracts. These derivative instruments are reflected net on the accompanying Consolidated Balance Sheets. | ||||||||||||||
The following table summarizes the effect of derivative instruments not designated as hedges on the accompanying Consolidated Statements of Operations for the periods indicated: | ||||||||||||||
Amount of Loss (Gain) | ||||||||||||||
Recognized in | ||||||||||||||
Income | ||||||||||||||
Year ended December 31, | ||||||||||||||
Location of Loss (Gain) | ||||||||||||||
Derivatives Not Designated as Hedges | Recognized in Income | 2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||||
Commodity derivative contracts | Derivative fair value loss (gain) | $ | 18,115 | $ | (9,293 | ) | $ | 7,959 | ||||||
Fair Value Hierarchy | ||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting principles generally accepted in the United States ("GAAP") establishes a three-tier fair value hierarchy, which prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are defined as follows: | ||||||||||||||
• | ||||||||||||||
Level 1—Inputs such as unadjusted, quoted prices that are available in active markets for identical assets or liabilities. | ||||||||||||||
• | ||||||||||||||
Level 2—Inputs, other than quoted prices within Level 1, that are either directly or indirectly observable, such as quoted prices for similar assets and liabilities or quoted prices in inactive markets. | ||||||||||||||
• | ||||||||||||||
Level 3—Inputs that are unobservable for use when little or no market data exists requiring the use of valuation methodologies that result in management's best estimate of fair value. | ||||||||||||||
As required by GAAP, Athlon utilizes the most observable inputs available for the valuation technique used. The financial assets and liabilities are classified in their entirety based on the lowest level of input that is of significance to the fair value measurement. Athlon's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the financial assets and liabilities and their placement within the fair value hierarchy levels. The following methods and assumptions were used to estimate the fair values of Athlon's assets and liabilities that are accounted for at fair value on a recurring basis: | ||||||||||||||
• | ||||||||||||||
Level 2—Fair values of swaps are estimated using a combined income-based and market-based valuation methodology based upon forward commodity price curves obtained from independent pricing services. Settlement is determined by the average underlying price over a predetermined period of time. Athlon uses observable inputs in an option pricing valuation model to determine fair value such as: (i) current market and contractual prices for the underlying instruments; (ii) quoted forward prices for oil; (iii) interest rates, such as a LIBOR curve for a term similar to the commodity derivative contract; and (iv) appropriate volatilities. | ||||||||||||||
Athlon adjusts the valuations from the valuation model for nonperformance risk. For commodity derivative contracts which are in an asset position, Athlon adds the counterparty's credit default swap spread to the risk-free rate. If a counterparty does not have a credit default swap spread, Athlon uses other companies with similar credit ratings to determine the applicable spread. For commodity derivative contracts which are in a liability position, Athlon uses the yield on its senior notes less the risk-free rate. All fair values have been adjusted for nonperformance risk resulting in a decrease in the net commodity derivative liability of approximately $39,000 as of December 31, 2013 and an increase in the net commodity derivative asset of approximately $125,000 as of December 31, 2012. | ||||||||||||||
The following table sets forth Athlon's assets and liabilities that were accounted for at fair value on a recurring basis as of the dates indicated: | ||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||
Description | Net Asset (Liability) | Quoted Prices in | Significant Other | Significant | ||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||
Identical Assets | (Level 2) | (Level 3) | ||||||||||||
(Level 1) | ||||||||||||||
(in thousands) | ||||||||||||||
As of December 31, 2013 | ||||||||||||||
Oil derivative contracts—swaps | $ | (6,024 | ) | $ | — | $ | (6,024 | ) | $ | — | ||||
As of December 31, 2012 | ||||||||||||||
Oil derivative contracts—swaps | $ | 4,069 | $ | — | $ | 4,069 | $ | — | ||||||
Oil derivative contracts—collars | (80 | ) | — | (80 | ) | — | ||||||||
| | | | | | | | | | | | | | |
Total | $ | 3,989 | $ | — | $ | 3,989 | $ | — | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Asset Retirement Obligations | ' | |||||||
Asset Retirement Obligations | ' | |||||||
Note 5. Asset Retirement Obligations | ||||||||
Asset retirement obligations relate to future plugging and abandonment expenses on oil and natural gas properties and related facilities disposal. The following table summarizes the changes in Athlon's asset retirement obligations for the periods indicated: | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Balance at January 1 | $ | 5,049 | $ | 3,704 | ||||
Liabilities assumed in acquisitions | 395 | 60 | ||||||
Liabilities incurred from new wells | 1,013 | 815 | ||||||
Liabilities settled | (283 | ) | — | |||||
Accretion of discount | 675 | 478 | ||||||
Revisions of previous estimates | 6 | (8 | ) | |||||
| | | | | | | | |
Balance at December 31 | 6,855 | 5,049 | ||||||
Less: current portion | 60 | — | ||||||
| | | | | | | | |
Asset retirement obligations—long-term | $ | 6,795 | $ | 5,049 | ||||
| | | | | | | | |
| | | | | | | | |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Long-Term Debt. | ' | ||||||||||||||||||||||
Long-Term Debt | ' | ||||||||||||||||||||||
Note 6. Long-Term Debt | |||||||||||||||||||||||
Senior Notes | |||||||||||||||||||||||
In April 2013, Athlon issued $500 million aggregate principal amount of 73/8% senior notes due 2021 (the "Notes"). The net proceeds from the Notes were used to repay a portion of the outstanding borrowings under Athlon's credit agreement, to repay in full and terminate Athlon's former second lien term loan, to make a $75 million distribution to Holdings' Class A limited partners, and for general corporate purposes. On August 14, 2013, Holdings entered into a supplemental indenture pursuant to which Athlon became an unconditional guarantor of the Notes. | |||||||||||||||||||||||
The indenture governing the Notes contains covenants, including, among other things, covenants that restrict Athlon's ability to: | |||||||||||||||||||||||
• | |||||||||||||||||||||||
make distributions, investments, or other restricted payments if Athlon's fixed charge coverage ratio is less than 2.0 to 1.0; | |||||||||||||||||||||||
• | |||||||||||||||||||||||
incur additional indebtedness if Athlon's fixed charge coverage ratio would be less than 2.0 to 1.0; and | |||||||||||||||||||||||
• | |||||||||||||||||||||||
create liens, sell assets, consolidate or merge with any other person, or engage in transactions with affiliates. | |||||||||||||||||||||||
These covenants are subject to a number of important qualifications, limitations, and exceptions. In addition, the indenture contains other customary terms, including certain events of default upon the occurrence of which the senior notes may be declared immediately due and payable. | |||||||||||||||||||||||
Under the indenture, starting on April 15, 2016, Athlon will be able to redeem some or all of the Notes at a premium that will decrease over time, plus accrued and unpaid interest to the date of redemption. Prior to April 15, 2016, Athlon will be able, at its option, to redeem up to 35% of the aggregate principal amount of the Notes at a price of 107.375% of the principal thereof, plus accrued and unpaid interest to the date of redemption, with an amount equal to the net proceeds from certain equity offerings. In addition, at Athlon's option, prior to April 15, 2016, Athlon may redeem some or all of the Notes at a redemption price equal to 100% of the principal amount of the Notes, plus an "applicable premium", plus accrued and unpaid interest to the date of redemption. If a change of control occurs on or prior to July 15, 2014, Athlon may redeem all, but not less than all, of the notes at 110% of the principal amount thereof plus accrued and unpaid interest to, but not including, the redemption date. Certain asset dispositions will be triggering events that may require Athlon to repurchase all or any part of a noteholder's Notes at a purchase price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, up to but excluding the date of repurchase. Interest on the Notes is payable in cash semi-annually in arrears, commencing on October 15, 2013, through maturity. | |||||||||||||||||||||||
As a result of the issuance of the Notes, Athlon's former second lien term loan was paid off and retired and the borrowing base of Athlon's credit agreement was reduced resulting in a write off of unamortized debt issuance costs of approximately $2.8 million, which is included in "Interest expense" in the accompanying Consolidated Statements of Operations and "Other" in the operating activities section of the accompanying Consolidated Statements of Cash Flows for 2013. | |||||||||||||||||||||||
Credit Agreement | |||||||||||||||||||||||
Athlon is a party to an amended and restated credit agreement dated March 19, 2013 (the "Credit Agreement"), which matures on March 19, 2018. The Credit Agreement provides for revolving credit loans to be made to Athlon from time to time and letters of credit to be issued from time to time for the account of Athlon or any of its restricted subsidiaries. The aggregate amount of the commitments of the lenders under the Credit Agreement is $1.0 billion. Availability under the Credit Agreement is subject to a borrowing base, which is redetermined semi-annually and upon requested special redeterminations. | |||||||||||||||||||||||
In conjunction with the offering of the Notes in April 2013 as discussed above, the borrowing base under the Credit Agreement was reduced to $267.5 million. In May 2013, Athlon amended the Credit Agreement to, among other things, increase the borrowing base to $320 million. In November 2013, Athlon amended the Credit Agreement to, among other things, increase the borrowing base to $525 million. As of December 31, 2013, the borrowing base was $525 million and there were no outstanding borrowings and no outstanding letters of credit under the Credit Agreement. | |||||||||||||||||||||||
Obligations under the Credit Agreement are secured by a first-priority security interest in substantially all of Athlon's proved reserves and in the equity interests of its operating subsidiaries. In addition, obligations under the Credit Agreement are guaranteed by Athlon's operating subsidiaries. | |||||||||||||||||||||||
Loans under the Credit Agreement are subject to varying rates of interest based on (i) outstanding borrowings in relation to the borrowing base and (ii) whether the loan is a Eurodollar loan or a base rate loan. Eurodollar loans under the Credit Agreement bear interest at the Eurodollar rate plus the applicable margin indicated in the following table, and base rate loans under the Credit Agreement bear interest at the base rate plus the applicable margin indicated in the following table. Athlon also incurs a quarterly commitment fee on the unused portion of the Credit Agreement indicated in the following table: | |||||||||||||||||||||||
Ratio of Outstanding Borrowings to Borrowing Base | Unused | Applicable | Applicable | ||||||||||||||||||||
Commitment Fee | Margin for | Margin for Base | |||||||||||||||||||||
Eurodollar Loans | Rate Loans | ||||||||||||||||||||||
Less than or equal to .30 to 1 | 0.375 | % | 1.5 | % | 0.5 | % | |||||||||||||||||
Greater than .30 to 1 but less than or equal to .60 to 1 | 0.375 | % | 1.75 | % | 0.75 | % | |||||||||||||||||
Greater than .60 to 1 but less than or equal to .80 to 1 | 0.5 | % | 2 | % | 1 | % | |||||||||||||||||
Greater than .80 to 1 but less than or equal to .90 to 1 | 0.5 | % | 2.25 | % | 1.25 | % | |||||||||||||||||
Greater than .90 to 1 | 0.5 | % | 2.5 | % | 1.5 | % | |||||||||||||||||
The "Eurodollar rate" for any interest period (either one, two, three, or nine months, as selected by Athlon) is the rate equal to the British Bankers Association London Interbank Offered Rate ("LIBOR") for deposits in dollars for a similar interest period. The "Base Rate" is calculated as the highest of: (i) the annual rate of interest announced by Bank of America, N.A. as its "prime rate"; (ii) the federal funds effective rate plus 0.5%; or (iii) except during a "LIBOR Unavailability Period", the Eurodollar rate (for dollar deposits for a one-month term) for such day plus 1.0%. | |||||||||||||||||||||||
Any outstanding letters of credit reduce the availability under the Credit Agreement. Borrowings under the Credit Agreement may be repaid from time to time without penalty. | |||||||||||||||||||||||
The Credit Agreement contains covenants including, among others, the following: | |||||||||||||||||||||||
• | |||||||||||||||||||||||
a prohibition against incurring debt, subject to permitted exceptions; | |||||||||||||||||||||||
• | |||||||||||||||||||||||
a restriction on creating liens on Athlon's assets and the assets of its operating subsidiaries, subject to permitted exceptions; | |||||||||||||||||||||||
• | |||||||||||||||||||||||
restrictions on merging and selling assets outside the ordinary course of business; | |||||||||||||||||||||||
• | |||||||||||||||||||||||
restrictions on use of proceeds, investments, transactions with affiliates, or change of principal business; | |||||||||||||||||||||||
• | |||||||||||||||||||||||
a requirement that Athlon maintain a ratio of consolidated total debt to EBITDAX (as defined in the Credit Agreement) of not more than 4.75 to 1.0 (which ratio changes to 4.5 to 1.0 beginning with the quarter ending June 30, 2014); and | |||||||||||||||||||||||
• | |||||||||||||||||||||||
a provision limiting commodity derivative contracts to a volume not exceeding 85% of projected production from proved reserves for a period not exceeding 66 months from the date the commodity derivative contract is entered into. | |||||||||||||||||||||||
The Credit Agreement contains customary events of default, including Athlon's failure to comply with the financial ratios described above, which would permit the lenders to accelerate the debt if not cured within applicable grace periods. If an event of default occurs and is continuing, lenders with a majority of the aggregate commitments may require Bank of America, N.A. to declare all amounts outstanding under the Credit Agreement to be immediately due and payable. | |||||||||||||||||||||||
Long-Term Debt Maturities | |||||||||||||||||||||||
The following table shows Athlon's long-term debt maturities as of December 31, 2013: | |||||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Credit Agreement | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
73/8% Senior Notes | 500,000 | — | — | — | — | — | 500,000 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | 500,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 500,000 | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
During 2013, 2012, and 2011, the weighted-average interest rate for total indebtedness was 7.6%, 4.3%, and 3.8%, respectively. | |||||||||||||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity | ' |
Stockholders' Equity | ' |
Note 7. Stockholders' Equity | |
In connection with Athlon's incorporation on April 1, 2013 under the laws of the State of Delaware, it issued 1,000 shares of its common stock to Athlon Holdings GP LLC for an aggregate purchase price of $10.00. These securities were offered and sold by Athlon in reliance upon the exemption from the registration requirements provided by Section 4(2) of the Securities Act of 1933. On April 26, 2013, in connection with the corporate reorganization, certain holders of limited partner interests in Holdings exchanged their Class A interests and Class B interests for an aggregate of 960,907 shares of Athlon's common stock. These securities were offered and sold by Athlon in reliance upon the exemption from the registration requirements provided by Section 4(2) of the Securities Act of 1933. In connection with the effectiveness of Athlon's IPO, these shares were subject to an adjustment based on Athlon's IPO price of $20.00 per share and an actual 65.266-for-1 stock split resulting in 66,339,615 shares of Athlon's common stock to be outstanding prior to the closing of the IPO. | |
As discussed in "Note 1. Formation of the Company and Description of Business", on August 7, 2013, Athlon completed its IPO of 15,789,474 shares of its common stock at $20.00 per share and received net proceeds of approximately $295.7 million, after deducting underwriting discounts and commissions and offering expenses. Athlon used the net proceeds from the IPO (i) to reduce outstanding borrowings under the Credit Agreement, (ii) to provide additional liquidity for use in its drilling program, and (iii) for general corporate purposes. Upon consummation of the IPO, Athlon's ownership percentage of Holdings increased, resulting in a decrease in the noncontrolling interest from approximately 3.2% to approximately 2.2%. | |
Preferred Stock | |
Athlon's authorized capital stock includes 50,000,000 shares of preferred stock, none of which were issued and outstanding at December 31, 2013. Athlon does not plan to issue any shares of preferred stock. | |
Taxes
Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Taxes | ' | ||||||||||
Taxes | ' | ||||||||||
Note 8. Taxes | |||||||||||
Income Taxes | |||||||||||
As a result of the corporate reorganization on April 26, 2013, Athlon (a C-corporation) obtained most of the interests in Holdings. Prior to April 26, 2013, Holdings, Athlon's accounting predecessor, was a limited partnership not subject to federal income taxes. | |||||||||||
The components of income tax provision were as follows for the periods indicated: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Federal: | |||||||||||
Current | $ | 1,135 | $ | — | $ | — | |||||
Deferred | 17,022 | — | — | ||||||||
| | | | | | | | | | | |
Total federal | 18,157 | — | — | ||||||||
| | | | | | | | | | | |
State, net of federal benefit: | |||||||||||
Deferred | 993 | 1,928 | 470 | ||||||||
| | | | | | | | | | | |
Total state | 993 | 1,928 | 470 | ||||||||
| | | | | | | | | | | |
Income tax provision | $ | 19,150 | $ | 1,928 | $ | 470 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The following table reconciles income tax provision with income tax at the Federal statutory rate for the periods indicated: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Income (loss) before income taxes | $ | 79,572 | $ | 54,942 | $ | (659 | ) | ||||
Less: net income prior to corporate reorganization | (27,320 | ) | — | — | |||||||
Less: net income attributable to noncontrolling interest | (1,359 | ) | — | — | |||||||
| | | | | | | | | | | |
Income (loss) before income taxes and noncontrolling interest subsequent to corporate reorganization | $ | 50,893 | $ | 54,942 | $ | (659 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Income taxes at the Federal statutory rate | $ | 17,813 | $ | — | $ | — | |||||
State income taxes, net of federal benefit | 933 | 549 | 21 | ||||||||
Provision to return adjustment | 59 | — | — | ||||||||
Permanent and other | 345 | 1,379 | 449 | ||||||||
| | | | | | | | | | | |
Income tax provision | $ | 19,150 | $ | 1,928 | $ | 470 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The major components of net current deferred taxes and net long-term deferred taxes were as follows as of the dates indicated: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Current: | |||||||||||
Assets: | |||||||||||
Derivative fair value loss | $ | 480 | $ | — | |||||||
| | | | | | | | ||||
Total current deferred tax assets | 480 | — | |||||||||
| | | | | | | | ||||
Liabilities: | |||||||||||
Prepaid insurance | (100 | ) | (8 | ) | |||||||
Derivative fair value gain | — | (50 | ) | ||||||||
| | | | | | | | ||||
Total current deferred tax liabilities | (100 | ) | (58 | ) | |||||||
| | | | | | | | ||||
Net current deferred tax asset (liability) | $ | 380 | $ | (58 | ) | ||||||
| | | | | | | | ||||
| | | | | | | | ||||
Long-term: | |||||||||||
Assets: | |||||||||||
Alternative minimum tax credits | $ | 1,135 | $ | — | |||||||
Derivative fair value loss | 2,080 | 60 | |||||||||
Net operating loss carryforward | 43,164 | — | |||||||||
Asset retirement obligations | 519 | 8 | |||||||||
Deferred equity-based compensation | 1,406 | — | |||||||||
Acquisition costs capitalized | 3,351 | 95 | |||||||||
Other | 1,840 | 25 | |||||||||
| | | | | | | | ||||
Total long-term deferred tax assets | 53,495 | 188 | |||||||||
| | | | | | | | ||||
Liabilities: | |||||||||||
Book basis of oil and natural gas properties in excess of tax basis | (145,892 | ) | (2,528 | ) | |||||||
| | | | | | | | ||||
Total long-term deferred tax liabilities | (145,892 | ) | (2,528 | ) | |||||||
| | | | | | | | ||||
Net long-term deferred tax liability | $ | (92,397 | ) | $ | (2,340 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
At December 31, 2013, Athlon had federal net operating loss ("NOL") carryforwards, which are available to offset future federal state taxable income, if any. At December 31, 2013, Athlon also had federal alternative minimum tax ("AMT") credits, which are available to reduce future federal regular tax liabilities in excess of AMT. Athlon believes it is more likely than not that the NOL carryforwards will offset future taxable income prior to their expiration. The AMT credits have no expiration. Therefore, a valuation allowance against these deferred tax assets is not considered necessary. If unused, these carryforwards and credits will expire as follows: | |||||||||||
Expiration Date | Federal | Federal | |||||||||
AMT Credits | NOL | ||||||||||
(in thousands) | |||||||||||
2031 | $ | — | $ | 2,433 | |||||||
2032 | — | 77,749 | |||||||||
2033 | — | 43,143 | |||||||||
Indefinite | 1,135 | — | |||||||||
| | | | | | | | ||||
$ | 1,135 | $ | 123,325 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
During 2013, 2012, and 2011, Athlon did not have any interest assessed by the taxing authorities or incur any penalties related to income taxes. | |||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share | ' | ||||||||||
Earnings Per Share | ' | ||||||||||
Note 9. Earnings Per Share | |||||||||||
Prior to the consummation of Athlon's IPO, Athlon had 960,907 shares of outstanding common stock. In conjunction with the closing of the IPO, certain Class A limited partners and Class B limited partners of Holdings that exchanged their interests for shares of Athlon's common stock were subject to an adjustment based on Athlon's IPO price of $20.00 per share and an actual 65.266-for-1 stock split. Following this adjustment and stock split, the number of outstanding shares of Athlon's common stock increased from 960,907 shares to 66,339,615 shares. The one-to-one conversion of the Holdings' interests in April 2013 to 960,907 shares of Athlon common stock is akin to a stock split and has been treated as such in Athlon's EPS calculations. Accordingly, Athlon assumes that 66,339,615 shares of common stock were outstanding during periods prior to Athlon's IPO for purposes of calculating EPS. | |||||||||||
The following table reflects the allocation of net income (loss) attributable to stockholders and EPS computations for the periods indicated: | |||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, | |||||||||||
except per share amounts) | |||||||||||
Basic EPS | |||||||||||
Numerator: | |||||||||||
Undistributed net income (loss) attributable to stockholders | $ | 59,063 | $ | 53,014 | $ | (1,129 | ) | ||||
Participation rights of unvested RSUs in undistributed earnings | (628 | ) | — | — | |||||||
| | | | | | | | | | | |
Basic undistributed net income (loss) attributable to stockholders | $ | 58,435 | $ | 53,014 | $ | (1,129 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Denominator: | |||||||||||
Basic weighted average shares outstanding | 72,915 | 66,340 | 66,340 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic EPS attributable to stockholders | $ | 0.8 | $ | 0.8 | $ | (0.02 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted EPS | |||||||||||
Numerator: | |||||||||||
Undistributed net income (loss) attributable to stockholders | $ | 59,063 | $ | 53,014 | $ | (1,129 | ) | ||||
Participation rights of unvested RSUs in undistributed earnings | (613 | ) | — | — | |||||||
Effect of conversion of New Holdings Units to shares of Athlon's common stock | 1,359 | — | — | ||||||||
| | | | | | | | | | | |
Diluted undistributed net income (loss) attributable to stockholders | $ | 59,809 | $ | 53,014 | $ | (1,129 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Denominator: | |||||||||||
Basic weighted average shares outstanding | 72,915 | 66,340 | 66,340 | ||||||||
Effect of conversion of New Holdings Units to shares of Athlon's common stock(a) | 1,856 | 1,856 | — | ||||||||
| | | | | | | | | | | |
Diluted weighted average shares outstanding | 74,771 | 68,196 | 66,340 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted EPS attributable to stockholders | $ | 0.8 | $ | 0.78 | $ | (0.02 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(a) | |||||||||||
For 2011, 1,855,563 New Holdings Units were outstanding but excluded from the EPS calculations because their effect would have been antidilutive. | |||||||||||
Employment_Benefit_Plans
Employment Benefit Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Employment Benefit Plans | ' | |||||||||||||
Employment Benefit Plans | ' | |||||||||||||
Note 10. Employment Benefit Plans | ||||||||||||||
401(k) Plan | ||||||||||||||
Athlon made contributions to its 401(k) plan, which is a voluntary and contributory plan for eligible employees based on a percentage of employee contributions, of $585,000, $454,000, and $219,000 during 2013, 2012, and 2011, respectively. Athlon's 401(k) plan does not allow employees to invest in securities of Athlon. | ||||||||||||||
Incentive Award Plan | ||||||||||||||
In August 2013, Athlon adopted the Athlon Energy Inc. 2013 Incentive Award Plan (the "Plan"). The principal purpose of the Plan is to attract, retain, and engage selected employees, consultants, and directors through the granting of equity and equity-based compensation awards. Employees, consultants, and directors of Athlon and its subsidiaries are eligible to receive awards under the Plan. The Compensation Committee will administer the Plan unless the Board of Directors assumes direct authority for administration. The Plan provides for the grant of stock options (including non-qualified stock options and incentive stock options), restricted stock, dividend equivalents, stock payments, restricted stock units ("RSUs"), performance awards, stock appreciation rights, and other equity-based and cash-based awards, or any combination thereof. | ||||||||||||||
The aggregate number of shares of common stock available for issuance pursuant to awards granted under the Plan is the sum of 8,400,000 shares, subject to adjustment as described below plus an annual increase on the first day of each calendar year beginning January 1, 2014 and ending on and including the last January 1 prior to the expiration date of the Plan, equal to the least of (i) 12,000,000 shares, (ii) 4% of the shares outstanding (on an as-converted basis) on the final day of the immediately preceding calendar year, and (iii) such smaller number of shares as determined by the Board of Directors. This number will also be adjusted due to the following shares becoming eligible to be used again for grants under the Plan: | ||||||||||||||
• | ||||||||||||||
shares subject to awards or portions of awards granted under the Plan which are forfeited, expire, or lapse for any reason, or are settled for cash without the delivery of shares, to the extent of such forfeiture, expiration, lapse, or cash settlement; and | ||||||||||||||
• | ||||||||||||||
shares that Athlon repurchases prior to vesting so that such shares are returned to Athlon. | ||||||||||||||
The Plan does not provide for individual limits on awards that may be granted to any individual participant under the Plan. Rather, the amount of awards to be granted to individual participants are determined by the Board of Directors or the Compensation Committee from time to time, as part of their compensation decision-making processes, provided, however, that the Plan does not permit awards having a grant date fair value in excess of $700,000 to be granted to Athlon's non-employee directors in any year. | ||||||||||||||
As of December 31, 2013, there were 7,761,087 shares available for issuance under the Plan. During 2013, Athlon recorded non-cash stock-based compensation expense related to the Plan of $4.0 million, which was allocated to lease operating expense and general and administrative expense in the accompanying Consolidated Statements of Operations based on the allocation of the respective employees' compensation. During 2013, Athlon also capitalized $263,000 of non-cash stock-based compensation expense related to the Plan as a component of "Evaluated, including wells and related equipment" in the accompanying Consolidated Balance Sheets. | ||||||||||||||
RSUs vest over three years, subject to the relative performance of Athlon's stock to that of a designated peer group for Athlon's management team. The following table summarizes the changes in Athlon's unvested RSUs for 2013 (presented at the target level): | ||||||||||||||
Number of | Weighted-Average | |||||||||||||
Shares | Grant Date | |||||||||||||
Fair Value | ||||||||||||||
Per Share | ||||||||||||||
Outstanding at January 1 | — | $ | — | |||||||||||
Granted | 638,913 | 34.88 | ||||||||||||
Vested | — | — | ||||||||||||
Forfeited | — | — | ||||||||||||
| | | | | | | | |||||||
Outstanding at December 31 | 638,913 | 34.88 | ||||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
During 2013, Athlon issued 411,413 RSUs to employees and non-employee directors, the vesting of which is dependent only on the passage of time and continued employment. The following table provides information regarding Athlon's outstanding RSUs at December 31, 2013 the vesting of which is dependent only on the passage of time and continued employment: | ||||||||||||||
Year of Vesting | ||||||||||||||
Year of Grant | 2014 | 2015 | 2016 | Total | ||||||||||
2013 | 137,138 | 137,138 | 137,137 | 411,413 | ||||||||||
During 2013, Athlon also issued 227,500 RSUs to Athlon's management team, the vesting of which is dependent not only on the passage of time and continued employment, but also on the relative performance of Athlon's stock to that of a designated peer group. One-half of the maximum number of shares that could be earned under the performance-based awards will be earned for performance at the designated target levels (100% target vesting levels) or upon any earlier change of control, and twice the number of shares will be earned if the higher maximum target levels are met. If performance is below the designated minimum levels for all performance targets, no performance-based shares will be earned. Performance-based awards were valued using a Monte Carlo simulation. The following table provides information regarding Athlon's outstanding RSUs at December 31, 2013 (presented at the target level) the vesting of which is dependent not only on the passage of time and continued employment, but also on the relative performance of Athlon's stock to that of a designated peer group: | ||||||||||||||
Year of Vesting | ||||||||||||||
Year of Grant | 2014 | 2015 | 2016 | Total | ||||||||||
2013 | 75,834 | 75,833 | 75,833 | 227,500 | ||||||||||
None of Athlon's unvested RSUs are subject to variable accounting. As of December 31, 2013, Athlon had approximately $16.6 million of total unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately 2.6 years. | ||||||||||||||
Class B Interests | ||||||||||||||
Holdings' limited partnership agreement provided for the issuance of Class B limited partner interests. As discussed in "Note 1. Formation of the Company and Description of Business", in connection with the corporate reorganization, the holders of the Class B limited partner interests in Holdings exchanged their interests for common stock of Athlon subject to the same conditions and vesting terms. Upon the consummation of Athlon's IPO, the remaining unvested common stock awards, which were formerly Class B interests in Holdings, vested and Athlon recognized non-cash equity-based compensation expense of approximately $1.5 million. | ||||||||||||||
During 2013, 2012, and 2011, Athlon recorded approximately $1.3 million, $152,000, and $106,000, respectively, of non-cash equity-based compensation expense related to Class B interests, which was allocated to lease operating expense and general and administrative expenses in the accompanying Consolidated Statements of Operations based on the allocation of the respective employees' compensation. During 2013 and 2012, Athlon capitalized approximately $415,000 and $93,000, respectively, of non-cash stock-based compensation expense as a component of "Evaluated, including wells and related equipment" in the accompanying Consolidated Balance Sheets. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||
Note 11. Commitments and Contingencies | |||||||||||||||||||||||
Leases | |||||||||||||||||||||||
Athlon leases certain office space that has non-cancelable lease terms in excess of one year. The following table summarizes the remaining non-cancelable future payments under these operating leases as of December 31, 2013: | |||||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Corporate office lease | $ | 1,031 | $ | 375 | $ | 375 | $ | 281 | $ | — | $ | — | $ | — | |||||||||
Midland office lease | 285 | 92 | 96 | 97 | — | — | — | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | 1,316 | $ | 467 | $ | 471 | $ | 378 | $ | — | $ | — | $ | — | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Athlon's operating lease rental expense was approximately $490,000, $507,000, and $272,000 during 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||
Litigation | |||||||||||||||||||||||
From time to time, Athlon is a party to ongoing legal proceedings in the ordinary course of business, including workers' compensation claims and employment-related disputes. Management does not believe the results of these proceedings, individually or in the aggregate, will have a material adverse effect on Athlon's business, financial position, results of operations, or liquidity. | |||||||||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
Note 12. Related Party Transactions | |
Transaction Fee Agreement | |
Athlon was a party to a Transaction Fee Agreement, dated August 23, 2010, which required it to pay a fee to Apollo equal to 2% of the total equity contributed to Athlon, as defined in the agreement, in exchange for consulting and advisory services provided by Apollo. In October 2012, Apollo assigned its rights and obligations under the Transaction Fee Agreement to an affiliate, Apollo Global Securities, LLC. Upon the consummation of Athlon's IPO, the Transaction Fee Agreement was terminated. Since Athlon's inception through the termination of the Transaction Fee Agreement, it incurred transaction fees under the Transaction Fee Agreement of approximately $7.5 million in total. | |
Services Agreement | |
Athlon was a party to a Services Agreement, dated August 23, 2010, which required it to compensate Apollo for consulting and advisory services equal to the higher of (i) 1% of earnings before interest, income taxes, DD&A, and exploration expense per quarter and (ii) $62,500 per quarter (the "Advisory Fee"); provided, however, that such Advisory Fee for any calendar year shall not exceed $500,000. The Services Agreement also provided for reimbursement to Apollo for any reasonable out-of-pocket expenses incurred while performing services under the Services Agreement. During 2013, 2012, and 2011, Athlon incurred approximately $500,000, $493,000, and $411,000, respectively, of Advisory Fees, which are included in "General and administrative expenses" in the accompanying Consolidated Statements of Operations. | |
Upon the consummation of Athlon's IPO, the Services Agreement was terminated and Athlon paid a termination fee of $2.4 million (plus $132,000 of unreimbursed fees) to Apollo. Such payment corresponded to the present value as of the date of termination of the aggregate annual fees that would have been payable during the remainder of the term of the Services Agreement (assuming a term ending on August 23, 2020). Under the Services Agreement, Athlon also agreed to indemnify Apollo and its affiliates and their respective limited partners, general partners, directors, members, officers, managers, employees, agents, advisors, and representatives for potential losses relating to the services contemplated under the Services Agreement. | |
Participation of Apollo Global Securities, LLC in Senior Notes Offering and IPO | |
Apollo Global Securities, LLC is an affiliate of the Apollo Funds and received a portion of the gross spread as an initial purchaser of the Notes of $0.5 million. Apollo Global Securities, LLC was also an underwriter in Athlon's IPO and received a portion of the discounts and commissions paid to the underwriters in the IPO of approximately $0.9 million. | |
Distribution | |
Athlon used a portion of the net proceeds from the Notes to make a distribution to Holdings' Class A limited partners, including the Apollo Funds and Athlon's management team and certain employees. The Apollo Funds received approximately $73 million of the distribution and Athlon's management team and certain employees received approximately $2 million, in the aggregate. | |
Exchange Agreement | |
Upon the consummation of its IPO, Athlon entered into an exchange agreement with its management team and certain employees who hold New Holdings Units. Under the exchange agreement, each such holder (and certain permitted transferees thereof) may, under certain circumstances after the date of the closing of the IPO (subject to the terms of the exchange agreement), exchange their New Holdings Units for shares of Athlon's common stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends, and reclassifications. As a holder exchanges its New Holdings Units, Athlon's interest in Holdings will be correspondingly increased. | |
Tax Receivable Agreement | |
Upon the consummation of its IPO, Athlon entered into a tax receivable agreement with its management team and certain employees who hold New Holdings Units that provides for the payment from time to time by Athlon to such unitholders of Holdings of 85% of the amount of the benefits, if any, that Athlon is deemed to realize as a result of increases in tax basis and certain other tax benefits related to exchanges of New Holdings Units pursuant to the exchange agreement, including tax benefits attributable to payments under the tax receivable agreement. These payment obligations are obligations of Athlon and not of Holdings. For purposes of the tax receivable agreement, the benefit deemed realized by Athlon will be computed by comparing its actual income tax liability (calculated with certain assumptions) to the amount of such taxes that Athlon would have been required to pay had there been no increase to the tax basis of the assets of Holdings as a result of the exchanges and had Athlon not entered into the tax receivable agreement. | |
The step-up in basis will depend on the fair value of the New Holdings Units at conversion. There is no intent of the holders of New Holdings Units to exchange their units for shares of Athlon's common stock in the foreseeable future. In addition, Athlon does not expect to be in a tax paying position before 2019. Therefore, Athlon cannot presently estimate what the benefit or payments under the tax receivable agreement will be on a factually supportable basis, and accordingly not recognized as a liability. | |
Subsequent_Events
Subsequent Events | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Subsequent Events | ' | |||||||
Subsequent Events | ' | |||||||
Note 13. Subsequent Events | ||||||||
Subsequent to December 31, 2013, Athlon entered into additional oil swaps. The following table summarizes Athlon's open commodity derivative contracts as of March 7, 2014: | ||||||||
Period | Average | Weighted-Average | ||||||
Daily Swap | Swap Price | |||||||
Volume | ||||||||
(Bbl) | (per Bbl) | |||||||
Q1 2014 | 8,606 | $ | 92.7 | |||||
Q2 2014 | 8,950 | 92.71 | ||||||
Q3 2014 | 9,950 | 92.52 | ||||||
Q4 2014 | 9,950 | 92.52 | ||||||
2014 | 9,369 | 92.61 | ||||||
Q1 2015 | 4,300 | 91.29 | ||||||
Q2 2015 | 4,300 | 91.29 | ||||||
Q3 2015 | 1,300 | 93.18 | ||||||
Q4 2015 | 1,300 | 93.18 | ||||||
2015 | 2,788 | 91.74 | ||||||
On February 6, 2014, Athlon completed the acquisition of certain oil and natural gas properties and related assets in the Midland Basin of West Texas for approximately $88 million in cash (subject to customary post-closing adjustments), pursuant to a Purchase and Sale Agreement dated January 10, 2014 with an effective date of September 1, 2013. Athlon also agreed to acquire additional working interests in the properties, partially offset by the exercise of certain preferential rights, with the net effect of an $8.7 million purchase price increase. The acquisition was financed through cash on hand and borrowings under the Credit Agreement. | ||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation | |||||||||||||||||
Athlon's consolidated financial statements include the accounts of its wholly owned and majority-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
Preparing financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities in the consolidated financial statements. Although management believes these estimates are reasonable, actual results could differ materially from those estimates. | |||||||||||||||||
Estimates made in preparing these consolidated financial statements include, among other things, estimates of the proved oil and natural gas reserve volumes used in calculating depletion, depreciation, and amortization ("DD&A") expense; operating costs accrued; volumes and prices for revenues accrued; valuation of derivative instruments; and the timing and amount of future abandonment costs used in calculating asset retirement obligations. Changes in the assumptions used could have a significant impact on results in future periods. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents include demand deposits and funds invested in highly liquid instruments with original maturities of three months or less and typically exceed federally insured limits. | |||||||||||||||||
The following table sets forth supplemental disclosures of cash flow information for the periods indicated: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in thousands) | |||||||||||||||||
Cash paid during the period for: | |||||||||||||||||
Interest | $ | 25,220 | $ | 8,326 | $ | 2,395 | |||||||||||
Income taxes | — | — | — | ||||||||||||||
Accounts Receivable | ' | ||||||||||||||||
Accounts Receivable | |||||||||||||||||
Accounts receivable, which are primarily from the sale of oil, natural gas, and natural gas liquids ("NGLs"), is accrued based on estimates of the sales and prices Athlon believes it will receive. Athlon routinely reviews outstanding balances, assesses the financial strength of its customers, and records a reserve for amounts not expected to be fully recovered. Actual balances are not applied against the reserve until substantially all collection efforts have been exhausted. At December 31, 2013 and 2012, Athlon did not have an allowance for doubtful accounts. | |||||||||||||||||
Inventory | ' | ||||||||||||||||
Inventory | |||||||||||||||||
Inventory includes materials and supplies that Athlon intends to deploy to various development activities and oil in tanks at the lease, both of which are stated at the lower of cost (determined on an average basis) or market. Oil in tanks at the lease is carried at an amount equal to its costs to produce. Inventory consisted of the following as of the dates indicated: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Materials and supplies | $ | 429 | $ | 670 | |||||||||||||
Oil inventory | 499 | 352 | |||||||||||||||
| | | | | | | | ||||||||||
Total inventory | $ | 928 | $ | 1,022 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Oil and Natural Gas Properties | ' | ||||||||||||||||
Oil and Natural Gas Properties | |||||||||||||||||
Athlon applies the provisions of the "Extractive Activities—Oil and Gas" topic of the Financial Accounting Standards Board's (the "FASB") Accounting Standards Codification (the "ASC"). Athlon uses the full cost method of accounting for its oil and natural gas properties. Under this method, costs directly associated with the acquisition, exploration, and development of reserves are capitalized into a full cost pool. Capitalized costs are amortized using a unit-of-production method. Under this method, the provision for DD&A is computed at the end of each period by multiplying total production for the period by a depletion rate. The depletion rate is determined by dividing the total unamortized cost base plus future development costs by net equivalent proved reserves at the beginning of the period. | |||||||||||||||||
Costs associated with unevaluated properties are excluded from the amortizable cost base until a determination has been made as to the existence of proved reserves. Unevaluated properties are reviewed at the end of each quarter to determine whether the costs incurred should be reclassified to the full cost pool and, thereby, subjected to amortization. The costs associated with unevaluated properties primarily consist of acquisition and leasehold costs as well as development costs for wells in progress for which a determination of the existence of proved reserves has not been made. These costs are transferred to the amortization base once a determination is made whether or not proved reserves can be assigned to the property, upon impairment of a lease, or immediately upon determination that the well is unsuccessful. Costs of seismic data that cannot be directly associated to specific properties are included in the full cost pool as incurred; otherwise, they are allocated to various unevaluated leaseholds and transferred to the amortization base with the associated leasehold costs on a specific project basis. | |||||||||||||||||
Independent petroleum engineers estimate Athlon's proved reserves annually as of December 31. This results in a new DD&A rate which Athlon uses for the preceding fourth quarter after adjusting for fourth quarter production. Athlon internally estimates reserve additions and reclassifications of reserves from unproved to proved at the end of the first, second, and third quarters for use in determining a DD&A rate for the respective quarter. | |||||||||||||||||
Sales and abandonments of oil and natural gas properties being amortized are accounted for as adjustments to the full cost pool, with no gain or loss recognized, unless the adjustments would significantly alter the relationship between capitalized costs and proved reserves. A significant alteration would not ordinarily be expected to occur upon the sale of reserves involving less than 25% of the reserve quantities of a cost center. | |||||||||||||||||
Natural gas volumes are converted to barrels of oil equivalent ("BOE") at the rate of six thousand cubic feet ("Mcf") of natural gas to one barrel ("Bbl") of oil. This convention is not an equivalent price basis and there may be a large difference in value between an equivalent volume of oil versus an equivalent volume of natural gas. | |||||||||||||||||
Athlon capitalizes interest on expenditures made in connection with exploratory projects that are not subject to current amortization. Interest is capitalized only for the period that activities are in progress to bring these projects to their intended use. Capitalized interest cannot exceed gross interest expense. During 2013 and 2012, Athlon capitalized approximately $0.3 million and $0.2 million, respectively, of interest expense. During 2011, Athlon did not capitalize any interest expense. | |||||||||||||||||
Unevaluated properties are assessed periodically, at least annually, for possible impairment. Properties are assessed on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of various factors, including, but not limited to: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results, and economic viability of development if proved reserves are assigned. During any period in which these factors indicate impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to amortization. | |||||||||||||||||
Under the full cost method of accounting, total capitalized costs of oil and natural gas properties, net of accumulated DD&A, less related deferred income taxes may not exceed an amount equal to the present value of future net revenues from proved reserves, discounted at 10% per annum, plus the lower of cost or fair value of unevaluated properties, plus estimated salvage value, less the related tax effects (the "ceiling limitation"). A ceiling limitation is calculated at the end of each quarter. If total capitalized costs, net of accumulated DD&A, less related deferred income taxes are greater than the ceiling limitation, a write-down or impairment of the full cost pool is required. A write-down of the carrying value of the full cost pool is a non-cash charge that reduces earnings and impacts equity in the period of occurrence and typically results in lower DD&A expense in future periods. Once incurred, a write-down cannot be reversed at a later date. | |||||||||||||||||
The ceiling limitation calculation is prepared using the 12-month first-day-of-the-month oil and natural gas average prices, as adjusted for basis or location differentials, held constant over the life of the reserves ("net wellhead prices"). If applicable, these net wellhead prices would be further adjusted to include the effects of any fixed price arrangements for the sale of oil and natural gas. Athlon uses commodity derivative contracts to mitigate the risk against the volatility of oil and natural gas prices. Commodity derivative contracts that qualify and are designated as cash flow hedges are included in estimated future cash flows. Athlon has not designated any of its commodity derivative contracts as cash flow hedges and therefore has excluded commodity derivative contracts in estimating future cash flows. The future cash outflows associated with future development or abandonment of wells are included in the computation of the discounted present value of future net revenues for purposes of the ceiling limitation calculation. | |||||||||||||||||
Amounts shown in the accompanying Consolidated Balance Sheets as "Evaluated, including wells and related equipment" consisted of the following as of the dates indicated: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Evalauted leasehold costs | $ | 448,689 | $ | 376,271 | |||||||||||||
Wells and related equipment—completed | 748,900 | 379,036 | |||||||||||||||
Wells and related equipment—in process | 46,589 | 33,264 | |||||||||||||||
| | | | | | | | ||||||||||
Total evaluated | $ | 1,244,178 | $ | 788,571 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Asset Retirement Obligations | ' | ||||||||||||||||
Asset Retirement Obligations | |||||||||||||||||
Athlon applies the provisions of the "Asset Retirement and Environmental Obligations" topic of the ASC. Athlon has obligations as a result of lease agreements and enacted laws to remove its equipment and restore land at the end of production operations. These asset retirement obligations are primarily associated with plugging and abandoning wells and land remediation. At the time a drilled well is completing or a well is acquired, Athlon records a separate liability for the estimated fair value of its asset retirement obligations, with an offsetting increase to the related oil and natural gas asset representing asset retirement costs in the accompanying Consolidated Balance Sheets. The cost of the related oil and natural gas asset, including the asset retirement cost, is included in Athlon's full cost pool. The estimated fair value of an asset retirement obligation is the present value of the expected future cash outflows required to satisfy the asset retirement obligations discounted at Athlon's credit-adjusted, risk-free interest rate at the time the liability is incurred. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. | |||||||||||||||||
Inherent to the present-value calculation are numerous estimates, assumptions, and judgments, including, but not limited to: the ultimate settlement amounts, inflation factors, credit-adjusted risk-free rates, timing of settlement, and changes in the legal, regulatory, environmental, and political environments. To the extent future revisions to these assumptions affect the present value of the abandonment liability, Athlon makes corresponding adjustments to both the asset retirement obligation and the related oil and natural gas property asset balance. These revisions result in prospective changes to DD&A expense and accretion of the discounted abandonment liability. Please read "Note 5. Asset Retirement Obligations" for additional information. | |||||||||||||||||
Equity-Based Compensation | ' | ||||||||||||||||
Equity-Based Compensation | |||||||||||||||||
Athlon accounts for equity-based compensation according to the "Share-Based Payment" topic of the ASC, which requires the recognition of compensation expense for equity-based awards over the requisite service period in an amount equal to the grant date fair value of the awards. Please read "Note 9. Employee Benefit Plans" for additional discussion of Athlon's employee benefit plans. | |||||||||||||||||
The "Share-Based Payment" topic of the ASC also requires that the benefits associated with the tax deductions in excess of recognized compensation cost, if any, be reported as a financing cash flow. This requirement reduces net operating cash flows and increases net financing cash flows. Athlon recognizes compensation costs related to awards with graded vesting on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. | |||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
Segment Reporting | |||||||||||||||||
Athlon only operates in the oil and natural gas exploration and production industry in the United States. All revenues are derived from customers located in the United States. | |||||||||||||||||
Major Customers / Concentration of Credit Risk | ' | ||||||||||||||||
Major Customers / Concentration of Credit Risk | |||||||||||||||||
The following purchasers accounted for 10% or greater of the sales of production for the periods indicated and the corresponding outstanding accounts receivable balance as of the dates indicated: | |||||||||||||||||
Percentage of Total | Outstanding | ||||||||||||||||
Revenues for | Accounts | ||||||||||||||||
the Year Ended | Receivable Balance | ||||||||||||||||
December 31, | as of December 31, | ||||||||||||||||
Purchaser | 2013 | 2012 | 2011 | 2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||||||
Occidental Petroleum Corporation | 27 | % | 29 | % | 58 | % | $ | 11,673 | $ | 4,456 | |||||||
DCP Midstream | (a) | 12 | % | 13 | % | (a) | 2,604 | ||||||||||
High Sierra Crude Oil & Marketing, LLC(b) | 46 | % | 43 | % | 13 | % | 18,951 | 9,348 | |||||||||
(a) | |||||||||||||||||
Less than 10% for the period indicated. | |||||||||||||||||
(b) | |||||||||||||||||
Formerly Pecos Gathering & Marketing. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
Athlon accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax laws and rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. 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. | |||||||||||||||||
Athlon periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets, including net operating losses. In making this determination, Athlon considers all available positive and negative evidence and makes certain assumptions. Athlon considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends, and its outlook for future years. Athlon believes it is more likely than not that certain net operating losses can be carried forward and utilized. | |||||||||||||||||
In April 2013, Athlon effected a corporate reorganization. Holdings, Athlon's accounting predecessor, is a partnership not subject to federal income tax. Pursuant to the corporate reorganization, certain Class A limited partners and the Class B limited partners of Holdings exchanged their interests for shares of Athlon's common stock. Athlon's operations are now subject to federal income tax. The tax implications of the corporate reorganization and the tax impact of the conversion to operating as a taxable entity have been reflected in the accompanying consolidated financial statements. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
Revenues from the sale of oil, natural gas, and NGLs are recognized when they are realized or realizable and earned. Revenues are considered realized or realizable and earned when: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the seller's price to the buyer is fixed or determinable; and (iv) collectability is reasonably assured. Because final settlement of our hydrocarbon sales can take up to two months, sales volumes and prices are estimated and accrued using information available at the time the revenue is recorded. If Athlon's overproduced imbalance position (i.e., Athlon has cumulatively been over-allocated production) is greater than its share of remaining reserves, a liability would be recorded for the excess at period-end prices unless a different price is specified in the contract, in which case that price is used. At December 31, 2013 and 2012, Athlon did not have any natural gas imbalances. Revenue is not recognized for oil production in tanks, but the production is recorded as a current asset based on the cost to produce and included in "Inventory" in the accompanying Consolidated Balance Sheets. Transportation expenses are included in operating expenses and are insignificant. | |||||||||||||||||
Derivatives | ' | ||||||||||||||||
Derivatives | |||||||||||||||||
Athlon uses various financial instruments for non-trading purposes to manage and reduce price volatility and other market risks associated with its oil production. These arrangements are structured to reduce Athlon's exposure to commodity price decreases, but they can also limit the benefit Athlon might otherwise receive from commodity price increases. Athlon's risk management activity is generally accomplished through over-the-counter commodity derivative contracts with large financial institutions, most of which are lenders under Athlon's credit agreement. | |||||||||||||||||
Athlon applies the provisions of the "Derivatives and Hedging" topic of the ASC, which requires each derivative instrument to be recorded in the accompanying Consolidated Balance Sheets at fair value. If a derivative has not been designated as a hedge or does not otherwise qualify for hedge accounting, it must be adjusted to fair value through earnings. Athlon elected not to designate its current portfolio of commodity derivative contracts as hedges for accounting purposes. Therefore, changes in fair value of these derivative instruments are recognized in earnings and included in "Derivative fair value loss (gain)" in the accompanying Consolidated Statements of Operations. | |||||||||||||||||
Athlon enters into commodity derivative contracts for the purpose of economically fixing the price of its anticipated oil production even though Athlon does not designate the derivatives as hedges for accounting purposes. Athlon classifies cash flows related to derivative contracts based on the nature and purpose of the derivative. As the derivative cash flows are considered an integral part of Athlon's oil and natural gas operations, they are classified as cash flows from operating activities in the accompanying Consolidated Statements of Cash Flows. | |||||||||||||||||
Noncontrolling Interest | ' | ||||||||||||||||
Noncontrolling Interest | |||||||||||||||||
As of December 31, 2013, management and certain employees owned approximately 2.2% of Holdings. Athlon owns 100% of Athlon Holdings GP LLC, which is Holdings' general partner. Considering the presumption of control, Athlon has fully consolidated the financial position, results of operations, and cash flows of Holdings. | |||||||||||||||||
As presented in the accompanying Consolidated Balance Sheets, "Noncontrolling interest" as of December 31, 2013 of approximately $10.8 million represents management and certain employees' 1,855,563 New Holdings Units that are exchangeable for shares of Athlon's common stock on a one-for-one basis. As presented in the accompanying Consolidated Statements of Operations, "Net income attributable to noncontrolling interest" for 2013 of approximately $1.4 million represents the net income of Holdings attributable to management and certain employees since April 26, 2013. | |||||||||||||||||
The following table summarizes the effects of changes in Athlon's partnership interest in Holdings on Athlon's equity for 2013 (in thousands): | |||||||||||||||||
Net income attributable to stockholders | $ | 59,063 | |||||||||||||||
| | | | | |||||||||||||
Transfer from noncontrolling interest: | |||||||||||||||||
Increase in Athlon's paid-in capital for corporate reorganization | 292,549 | ||||||||||||||||
Increase in Athlon's paid-in capital for issuance of 15,789,474 shares of common stock in initial public offering | 295,498 | ||||||||||||||||
| | | | | |||||||||||||
Net transfer from noncontrolling interest | 588,047 | ||||||||||||||||
| | | | | |||||||||||||
Change from net income attributable to stockholders and transfers from noncontrolling interest | $ | 647,110 | |||||||||||||||
| | | | | |||||||||||||
| | | | | |||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Earnings Per Share | |||||||||||||||||
For purposes of calculating earnings per share ("EPS"), Athlon allocates net income (loss) to its shareholders and participating securities each quarter under the provisions of the "Earnings Per Share" topic of the ASC. Under the two-class method of calculating EPS, earnings are allocated to participating securities as if all the earnings for the period had been distributed. A participating security is any security that may participate in distributions with common shares. For purposes of calculating EPS, unvested restricted stock units are considered participating securities. Net income (loss) per common share is calculated by dividing the shareholders' interest in net income (loss), after deducting the interests of participating securities, by the weighted average common shares outstanding. | |||||||||||||||||
New Accounting Pronouncements | ' | ||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||
In December 2011, the FASB issued Accounting Standards Update ("ASU") 2011-11, "Disclosures about Offsetting Assets and Liabilities" and in January 2013 issued ASU 2013-01, "Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities". These ASUs created new disclosure requirements regarding the nature of an entity's rights of offset and related arrangements associated with its derivative instruments, repurchase agreements, and securities lending transactions. Certain disclosures of the amounts of certain instruments subject to enforceable master netting arrangements are required, irrespective of whether the entity has elected to offset those instruments in the statement of financial position. These ASUs were effective retrospectively for annual reporting periods beginning on or after January 1, 2013. The adoption of these ASUs did not impact Athlon's financial position, results of operations, or liquidity. | |||||||||||||||||
No other new accounting pronouncements issued or effective from January 1, 2013 through the date of this Report, had or are expected to have a material impact on Athlon's consolidated financial statements. | |||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
Schedule of supplemental disclosures of cash flow information | ' | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in thousands) | |||||||||||||||||
Cash paid during the period for: | |||||||||||||||||
Interest | $ | 25,220 | $ | 8,326 | $ | 2,395 | |||||||||||
Income taxes | — | — | — | ||||||||||||||
Schedule of inventory | ' | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Materials and supplies | $ | 429 | $ | 670 | |||||||||||||
Oil inventory | 499 | 352 | |||||||||||||||
| | | | | | | | ||||||||||
Total inventory | $ | 928 | $ | 1,022 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Schedule of evaluated properties, including wells and related equipment | ' | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Evalauted leasehold costs | $ | 448,689 | $ | 376,271 | |||||||||||||
Wells and related equipment—completed | 748,900 | 379,036 | |||||||||||||||
Wells and related equipment—in process | 46,589 | 33,264 | |||||||||||||||
| | | | | | | | ||||||||||
Total evaluated | $ | 1,244,178 | $ | 788,571 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Schedule of major customers outstanding accounts receivable balance | ' | ||||||||||||||||
Percentage of Total | Outstanding | ||||||||||||||||
Revenues for | Accounts | ||||||||||||||||
the Year Ended | Receivable Balance | ||||||||||||||||
December 31, | as of December 31, | ||||||||||||||||
Purchaser | 2013 | 2012 | 2011 | 2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||||||
Occidental Petroleum Corporation | 27 | % | 29 | % | 58 | % | $ | 11,673 | $ | 4,456 | |||||||
DCP Midstream | (a) | 12 | % | 13 | % | (a) | 2,604 | ||||||||||
High Sierra Crude Oil & Marketing, LLC(b) | 46 | % | 43 | % | 13 | % | 18,951 | 9,348 | |||||||||
(a) | |||||||||||||||||
Less than 10% for the period indicated. | |||||||||||||||||
(b) | |||||||||||||||||
Formerly Pecos Gathering & Marketing. | |||||||||||||||||
Summary of effects of changes in Athlon's partnership interest in Holdings on Athlon's equity | ' | ||||||||||||||||
The following table summarizes the effects of changes in Athlon's partnership interest in Holdings on Athlon's equity for 2013 (in thousands): | |||||||||||||||||
Net income attributable to stockholders | $ | 59,063 | |||||||||||||||
| | | | | |||||||||||||
Transfer from noncontrolling interest: | |||||||||||||||||
Increase in Athlon's paid-in capital for corporate reorganization | 292,549 | ||||||||||||||||
Increase in Athlon's paid-in capital for issuance of 15,789,474 shares of common stock in initial public offering | 295,498 | ||||||||||||||||
| | | | | |||||||||||||
Net transfer from noncontrolling interest | 588,047 | ||||||||||||||||
| | | | | |||||||||||||
Change from net income attributable to stockholders and transfers from noncontrolling interest | $ | 647,110 | |||||||||||||||
| | | | | |||||||||||||
| | | | | |||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Element | ' | ||||
Acquisitions | ' | ||||
Schedule of allocation of purchase price to the fair value of assets acquired and liabilities assumed | ' | ||||
The allocation of the purchase price to the fair value of the assets acquired and liabilities assumed from Element was as follows (in thousands): | |||||
Proved properties, including wells and related equipment | $ | 130,527 | |||
Unproved properties | 123,107 | ||||
Other assets | 806 | ||||
| | | | | |
Total assets acquired | 254,440 | ||||
| | | | | |
Current liabilities | 831 | ||||
Asset retirement obligations | 393 | ||||
| | | | | |
Total liabilities assumed | 1,224 | ||||
| | | | | |
Fair value of net assets acquired | $ | 253,216 | |||
| | | | | |
| | | | | |
Schedule of unaudited pro forma condensed financial data | ' | ||||
Year ended | |||||
December 31, 2011 | |||||
(in thousands, except | |||||
per share amounts) | |||||
Pro forma total revenues | $ | 89,618 | |||
| | | | | |
| | | | | |
Pro forma net income attributable to stockholders | $ | 9,777 | |||
| | | | | |
| | | | | |
Pro forma net income per common share: | |||||
Basic | $ | 0.15 | |||
Diluted | $ | 0.14 | |||
SandRidge | ' | ||||
Acquisitions | ' | ||||
Schedule of allocation of purchase price to the fair value of assets acquired and liabilities assumed | ' | ||||
The allocation of the purchase price to the fair value of the assets acquired and liabilities assumed from SandRidge was as follows (in thousands): | |||||
Proved properties, including wells and related equipment | $ | 158,157 | |||
Oil inventory | 637 | ||||
| | | | | |
Total assets acquired | 158,794 | ||||
Asset retirement obligations | 2,778 | ||||
| | | | | |
Fair value of net assets acquired | $ | 156,016 | |||
| | | | | |
| | | | | |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Summary of open commodity derivative contracts | ' | |||||||||||||
Period | Average | Weighted- | Asset | |||||||||||
Daily | Average | (Liability) | ||||||||||||
Swap | Swap | Fair Market | ||||||||||||
Volume | Price | Value | ||||||||||||
(Bbl) | (per Bbl) | (in thousands) | ||||||||||||
2014 | 7,950 | $ | 92.67 | $ | (8,354 | ) | ||||||||
2015 | 1,300 | 93.18 | 2,330 | |||||||||||
| | | | | | | | | | | ||||
$ | (6,024 | ) | ||||||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Schedule of committed 10% or greater (in terms of fair market value) of oil derivative contracts in asset positions from counterparties, or their affiliates | ' | |||||||||||||
Counterparty | Fair Market Value of | |||||||||||||
Oil Derivative | ||||||||||||||
Contracts | ||||||||||||||
Committed | ||||||||||||||
(in thousands) | ||||||||||||||
BNP Paribas | $ | 1,082 | ||||||||||||
Schedule of fair value of derivative instruments not designated as hedging instruments | ' | |||||||||||||
Balance Sheet Location | Oil | Commodity | Total | |||||||||||
Commodity | Derivatives | Commodity | ||||||||||||
Derivatives | Netting(a) | Derivatives | ||||||||||||
(in thousands) | ||||||||||||||
As of December 31, 2013 | ||||||||||||||
Assets | ||||||||||||||
Derivatives—current | $ | 143 | $ | (143 | ) | $ | — | |||||||
Derivatives—noncurrent | 2,330 | — | 2,330 | |||||||||||
| | | | | | | | | | | ||||
Total assets | 2,473 | (143 | ) | 2,330 | ||||||||||
| | | | | | | | | | | ||||
Liabilities | ||||||||||||||
Derivatives—current | (8,497 | ) | 143 | (8,354 | ) | |||||||||
Derivatives—noncurrent | — | — | — | |||||||||||
| | | | | | | | | | | ||||
Total liabilities | (8,497 | ) | 143 | (8,354 | ) | |||||||||
| | | | | | | | | | | ||||
Net liabilities | $ | (6,024 | ) | $ | — | $ | (6,024 | ) | ||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
As of December 31, 2012 | ||||||||||||||
Assets | ||||||||||||||
Derivatives—current | $ | 3,386 | $ | (1,140 | ) | $ | 2,246 | |||||||
Derivatives—noncurrent | 3,265 | (411 | ) | 2,854 | ||||||||||
| | | | | | | | | | | ||||
Total assets | 6,651 | (1,551 | ) | 5,100 | ||||||||||
| | | | | | | | | | | ||||
Liabilities | ||||||||||||||
Derivatives—current | (1,732 | ) | 1,140 | (592 | ) | |||||||||
Derivatives—noncurrent | (930 | ) | 411 | (519 | ) | |||||||||
| | | | | | | | | | | ||||
Total liabilities | (2,662 | ) | 1,551 | (1,111 | ) | |||||||||
| | | | | | | | | | | ||||
Net assets | $ | 3,989 | $ | — | $ | 3,989 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
(a) | ||||||||||||||
Represents counterparty netting under master netting agreements, which allow for netting of commodity derivative contracts. These derivative instruments are reflected net on the accompanying Consolidated Balance Sheets. | ||||||||||||||
Schedule of effect of derivative instruments not designated as hedges on accompanying consolidated statements of operation | ' | |||||||||||||
Amount of Loss (Gain) | ||||||||||||||
Recognized in | ||||||||||||||
Income | ||||||||||||||
Year ended December 31, | ||||||||||||||
Location of Loss (Gain) | ||||||||||||||
Derivatives Not Designated as Hedges | Recognized in Income | 2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||||
Commodity derivative contracts | Derivative fair value loss (gain) | $ | 18,115 | $ | (9,293 | ) | $ | 7,959 | ||||||
Schedule of assets and liabilities that accounted for at fair value on a recurring basis | ' | |||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||
Description | Net Asset (Liability) | Quoted Prices in | Significant Other | Significant | ||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||
Identical Assets | (Level 2) | (Level 3) | ||||||||||||
(Level 1) | ||||||||||||||
(in thousands) | ||||||||||||||
As of December 31, 2013 | ||||||||||||||
Oil derivative contracts—swaps | $ | (6,024 | ) | $ | — | $ | (6,024 | ) | $ | — | ||||
As of December 31, 2012 | ||||||||||||||
Oil derivative contracts—swaps | $ | 4,069 | $ | — | $ | 4,069 | $ | — | ||||||
Oil derivative contracts—collars | (80 | ) | — | (80 | ) | — | ||||||||
| | | | | | | | | | | | | | |
Total | $ | 3,989 | $ | — | $ | 3,989 | $ | — | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Asset Retirement Obligations | ' | |||||||
Summary of changes in asset retirement obligations | ' | |||||||
Year Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Balance at January 1 | $ | 5,049 | $ | 3,704 | ||||
Liabilities assumed in acquisitions | 395 | 60 | ||||||
Liabilities incurred from new wells | 1,013 | 815 | ||||||
Liabilities settled | (283 | ) | — | |||||
Accretion of discount | 675 | 478 | ||||||
Revisions of previous estimates | 6 | (8 | ) | |||||
| | | | | | | | |
Balance at December 31 | 6,855 | 5,049 | ||||||
Less: current portion | 60 | — | ||||||
| | | | | | | | |
Asset retirement obligations—long-term | $ | 6,795 | $ | 5,049 | ||||
| | | | | | | | |
| | | | | | | | |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Long-Term Debt. | ' | ||||||||||||||||||||||
Schedule of quarterly commitment fee on unused portion of the Credit Agreement and applicable margin for Eurodollar and base rate loans | ' | ||||||||||||||||||||||
Ratio of Outstanding Borrowings to Borrowing Base | Unused | Applicable | Applicable | ||||||||||||||||||||
Commitment Fee | Margin for | Margin for Base | |||||||||||||||||||||
Eurodollar Loans | Rate Loans | ||||||||||||||||||||||
Less than or equal to .30 to 1 | 0.375 | % | 1.5 | % | 0.5 | % | |||||||||||||||||
Greater than .30 to 1 but less than or equal to .60 to 1 | 0.375 | % | 1.75 | % | 0.75 | % | |||||||||||||||||
Greater than .60 to 1 but less than or equal to .80 to 1 | 0.5 | % | 2 | % | 1 | % | |||||||||||||||||
Greater than .80 to 1 but less than or equal to .90 to 1 | 0.5 | % | 2.25 | % | 1.25 | % | |||||||||||||||||
Greater than .90 to 1 | 0.5 | % | 2.5 | % | 1.5 | % | |||||||||||||||||
Schedule of long-term debt maturities | ' | ||||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Credit Agreement | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
73/8% Senior Notes | 500,000 | — | — | — | — | — | 500,000 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | 500,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 500,000 | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Taxes_Tables
Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Taxes | ' | ||||||||||
Schedule of the components of income tax provision | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Federal: | |||||||||||
Current | $ | 1,135 | $ | — | $ | — | |||||
Deferred | 17,022 | — | — | ||||||||
| | | | | | | | | | | |
Total federal | 18,157 | — | — | ||||||||
| | | | | | | | | | | |
State, net of federal benefit: | |||||||||||
Deferred | 993 | 1,928 | 470 | ||||||||
| | | | | | | | | | | |
Total state | 993 | 1,928 | 470 | ||||||||
| | | | | | | | | | | |
Income tax provision | $ | 19,150 | $ | 1,928 | $ | 470 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of reconciliation of income tax provision with income tax at the Federal statutory rate | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Income (loss) before income taxes | $ | 79,572 | $ | 54,942 | $ | (659 | ) | ||||
Less: net income prior to corporate reorganization | (27,320 | ) | — | — | |||||||
Less: net income attributable to noncontrolling interest | (1,359 | ) | — | — | |||||||
| | | | | | | | | | | |
Income (loss) before income taxes and noncontrolling interest subsequent to corporate reorganization | $ | 50,893 | $ | 54,942 | $ | (659 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Income taxes at the Federal statutory rate | $ | 17,813 | $ | — | $ | — | |||||
State income taxes, net of federal benefit | 933 | 549 | 21 | ||||||||
Provision to return adjustment | 59 | — | — | ||||||||
Permanent and other | 345 | 1,379 | 449 | ||||||||
| | | | | | | | | | | |
Income tax provision | $ | 19,150 | $ | 1,928 | $ | 470 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of the major components of net current deferred taxes and net long-term deferred taxes | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Current: | |||||||||||
Assets: | |||||||||||
Derivative fair value loss | $ | 480 | $ | — | |||||||
| | | | | | | | ||||
Total current deferred tax assets | 480 | — | |||||||||
| | | | | | | | ||||
Liabilities: | |||||||||||
Prepaid insurance | (100 | ) | (8 | ) | |||||||
Derivative fair value gain | — | (50 | ) | ||||||||
| | | | | | | | ||||
Total current deferred tax liabilities | (100 | ) | (58 | ) | |||||||
| | | | | | | | ||||
Net current deferred tax asset (liability) | $ | 380 | $ | (58 | ) | ||||||
| | | | | | | | ||||
| | | | | | | | ||||
Long-term: | |||||||||||
Assets: | |||||||||||
Alternative minimum tax credits | $ | 1,135 | $ | — | |||||||
Derivative fair value loss | 2,080 | 60 | |||||||||
Net operating loss carryforward | 43,164 | — | |||||||||
Asset retirement obligations | 519 | 8 | |||||||||
Deferred equity-based compensation | 1,406 | — | |||||||||
Acquisition costs capitalized | 3,351 | 95 | |||||||||
Other | 1,840 | 25 | |||||||||
| | | | | | | | ||||
Total long-term deferred tax assets | 53,495 | 188 | |||||||||
| | | | | | | | ||||
Liabilities: | |||||||||||
Book basis of oil and natural gas properties in excess of tax basis | (145,892 | ) | (2,528 | ) | |||||||
| | | | | | | | ||||
Total long-term deferred tax liabilities | (145,892 | ) | (2,528 | ) | |||||||
| | | | | | | | ||||
Net long-term deferred tax liability | $ | (92,397 | ) | $ | (2,340 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of expiration of carryforwards and credits | ' | ||||||||||
Expiration Date | Federal | Federal | |||||||||
AMT Credits | NOL | ||||||||||
(in thousands) | |||||||||||
2031 | $ | — | $ | 2,433 | |||||||
2032 | — | 77,749 | |||||||||
2033 | — | 43,143 | |||||||||
Indefinite | 1,135 | — | |||||||||
| | | | | | | | ||||
$ | 1,135 | $ | 123,325 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share | ' | ||||||||||
Schedule of allocation of net income (loss) attributable to stockholders and EPS computations | ' | ||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, | |||||||||||
except per share amounts) | |||||||||||
Basic EPS | |||||||||||
Numerator: | |||||||||||
Undistributed net income (loss) attributable to stockholders | $ | 59,063 | $ | 53,014 | $ | (1,129 | ) | ||||
Participation rights of unvested RSUs in undistributed earnings | (628 | ) | — | — | |||||||
| | | | | | | | | | | |
Basic undistributed net income (loss) attributable to stockholders | $ | 58,435 | $ | 53,014 | $ | (1,129 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Denominator: | |||||||||||
Basic weighted average shares outstanding | 72,915 | 66,340 | 66,340 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic EPS attributable to stockholders | $ | 0.8 | $ | 0.8 | $ | (0.02 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted EPS | |||||||||||
Numerator: | |||||||||||
Undistributed net income (loss) attributable to stockholders | $ | 59,063 | $ | 53,014 | $ | (1,129 | ) | ||||
Participation rights of unvested RSUs in undistributed earnings | (613 | ) | — | — | |||||||
Effect of conversion of New Holdings Units to shares of Athlon's common stock | 1,359 | — | — | ||||||||
| | | | | | | | | | | |
Diluted undistributed net income (loss) attributable to stockholders | $ | 59,809 | $ | 53,014 | $ | (1,129 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Denominator: | |||||||||||
Basic weighted average shares outstanding | 72,915 | 66,340 | 66,340 | ||||||||
Effect of conversion of New Holdings Units to shares of Athlon's common stock(a) | 1,856 | 1,856 | — | ||||||||
| | | | | | | | | | | |
Diluted weighted average shares outstanding | 74,771 | 68,196 | 66,340 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted EPS attributable to stockholders | $ | 0.8 | $ | 0.78 | $ | (0.02 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(a) | |||||||||||
For 2011, 1,855,563 New Holdings Units were outstanding but excluded from the EPS calculations because their effect would have been antidilutive. | |||||||||||
Employment_Benefit_Plans_Table
Employment Benefit Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Employment Benefit Plans | ' | |||||||||||||
Summary of changes in unvested RSUs | ' | |||||||||||||
Number of | Weighted-Average | |||||||||||||
Shares | Grant Date | |||||||||||||
Fair Value | ||||||||||||||
Per Share | ||||||||||||||
Outstanding at January 1 | — | $ | — | |||||||||||
Granted | 638,913 | 34.88 | ||||||||||||
Vested | — | — | ||||||||||||
Forfeited | — | — | ||||||||||||
| | | | | | | | |||||||
Outstanding at December 31 | 638,913 | 34.88 | ||||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Vesting of awards subject to time and continued employment condition | ' | |||||||||||||
Incentive award plan | ' | |||||||||||||
Schedule of vesting of RSUs | ' | |||||||||||||
Year of Vesting | ||||||||||||||
Year of Grant | 2014 | 2015 | 2016 | Total | ||||||||||
2013 | 137,138 | 137,138 | 137,137 | 411,413 | ||||||||||
Vesting of awards subject to time, continued employment and performance condition | ' | |||||||||||||
Incentive award plan | ' | |||||||||||||
Schedule of vesting of RSUs | ' | |||||||||||||
Year of Vesting | ||||||||||||||
Year of Grant | 2014 | 2015 | 2016 | Total | ||||||||||
2013 | 75,834 | 75,833 | 75,833 | 227,500 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||
Summary of the remaining non-cancelable future payments under these operating leases | ' | ||||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Corporate office lease | $ | 1,031 | $ | 375 | $ | 375 | $ | 281 | $ | — | $ | — | $ | — | |||||||||
Midland office lease | 285 | 92 | 96 | 97 | — | — | — | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | 1,316 | $ | 467 | $ | 471 | $ | 378 | $ | — | $ | — | $ | — | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Subsequent_Events_Tables
Subsequent Events (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Subsequent events | ' | ||||||||||
Summary of open commodity derivative contracts | ' | ||||||||||
Period | Average | Weighted- | Asset | ||||||||
Daily | Average | (Liability) | |||||||||
Swap | Swap | Fair Market | |||||||||
Volume | Price | Value | |||||||||
(Bbl) | (per Bbl) | (in thousands) | |||||||||
2014 | 7,950 | $ | 92.67 | $ | (8,354 | ) | |||||
2015 | 1,300 | 93.18 | 2,330 | ||||||||
| | | | | | | | | | | |
$ | (6,024 | ) | |||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Subsequent event | ' | ||||||||||
Subsequent events | ' | ||||||||||
Summary of open commodity derivative contracts | ' | ||||||||||
The following table summarizes Athlon's open commodity derivative contracts as of March 7, 2014: | |||||||||||
Period | Average | Weighted-Average | |||||||||
Daily Swap | Swap Price | ||||||||||
Volume | |||||||||||
(Bbl) | (per Bbl) | ||||||||||
Q1 2014 | 8,606 | $ | 92.7 | ||||||||
Q2 2014 | 8,950 | 92.71 | |||||||||
Q3 2014 | 9,950 | 92.52 | |||||||||
Q4 2014 | 9,950 | 92.52 | |||||||||
2014 | 9,369 | 92.61 | |||||||||
Q1 2015 | 4,300 | 91.29 | |||||||||
Q2 2015 | 4,300 | 91.29 | |||||||||
Q3 2015 | 1,300 | 93.18 | |||||||||
Q4 2015 | 1,300 | 93.18 | |||||||||
2015 | 2,788 | 91.74 |
Formation_of_the_Company_and_D1
Formation of the Company and Description of Business (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Aug. 07, 2013 | Dec. 31, 2013 | Apr. 26, 2013 | |
Formation of the Company and Description of Business | ' | ' | ' |
Tax impact of corporate reorganization | ' | ' | $71,600,000 |
Initial public offering | ' | ' | ' |
Shares of common stock issued in IPO | 15,789,474 | ' | ' |
Per share price (in dollars per share) | $20 | ' | ' |
Net proceeds from IPO, after deducting underwriting discounts and commissions and offering expenses (in dollars) | $295,700,000 | $295,697,000 | ' |
Number of common stock exchangeable against each unit | ' | 1 | ' |
Holdings | ' | ' | ' |
Initial public offering | ' | ' | ' |
Shares of common stock issued in IPO | ' | 15,789,474 | ' |
Holdings | Class A limited partners | ' | ' | ' |
Initial public offering | ' | ' | ' |
Exchange Agreement Number of New Units Exchangeable Against Limited Partner Interest | 1,855,563 | ' | ' |
Number of common stock exchangeable against each unit | ' | 1 | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash paid during the period for: | ' | ' | ' |
Interest | $25,220,000 | $8,326,000 | $2,395,000 |
Income taxes | 0 | 0 | 0 |
Inventory | ' | ' | ' |
Materials and supplies | 429,000 | 670,000 | ' |
Oil inventory | 499,000 | 352,000 | ' |
Total inventory | 928,000 | 1,022,000 | ' |
Oil and Natural Gas Properties | ' | ' | ' |
Gain or loss recognized on sales and abandonments of oil and natural gas properties | 0 | ' | ' |
Minimum percentage of sale of proved reserve quantities for significant alteration | 25.00% | ' | ' |
Interest expense capitalized | 300,000 | 200,000 | ' |
Discount rate (as a percent) | 10.00% | ' | ' |
Period used in calculation of ceiling limitation | '12 months | ' | ' |
Evaluated, including wells and related equipment | ' | ' | ' |
Evaluated leasehold costs | 448,689,000 | 376,271,000 | ' |
Wells and related equipment - completed | 748,900,000 | 379,036,000 | ' |
Wells and related equipment - in process | 46,589,000 | 33,264,000 | ' |
Total evaluated | 1,244,178,000 | 788,571,000 | ' |
Major Customers / Concentration of Credit Risk | ' | ' | ' |
Outstanding accounts receivable | 48,238,000 | 24,501,000 | ' |
Revenue Recognition | ' | ' | ' |
Maximum period for final settlement of hydrocarbon sales | '2 months | ' | ' |
Revenues | Purchaser | Occidental Petroleum Corporation | ' | ' | ' |
Major Customers / Concentration of Credit Risk | ' | ' | ' |
Percentage of total revenues | 27.00% | 29.00% | 58.00% |
Revenues | Purchaser | DCP Midstream | ' | ' | ' |
Major Customers / Concentration of Credit Risk | ' | ' | ' |
Percentage of total revenues | ' | 12.00% | 13.00% |
Revenues | Purchaser | Pecos Gathering & Marketing | ' | ' | ' |
Major Customers / Concentration of Credit Risk | ' | ' | ' |
Percentage of total revenues | 46.00% | 43.00% | 13.00% |
Accounts Receivable | Purchaser | Occidental Petroleum Corporation | ' | ' | ' |
Major Customers / Concentration of Credit Risk | ' | ' | ' |
Outstanding accounts receivable | 11,673,000 | 4,456,000 | ' |
Accounts Receivable | Purchaser | DCP Midstream | ' | ' | ' |
Major Customers / Concentration of Credit Risk | ' | ' | ' |
Outstanding accounts receivable | ' | 2,604,000 | ' |
Accounts Receivable | Purchaser | Pecos Gathering & Marketing | ' | ' | ' |
Major Customers / Concentration of Credit Risk | ' | ' | ' |
Outstanding accounts receivable | $18,951,000 | $9,348,000 | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Aug. 07, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Noncontrolling interest | ' | ' | ' | ' |
Noncontrolling interest | ' | $10,788 | ' | ' |
Number of common stock exchangeable against each unit | ' | 1 | ' | ' |
Net income (loss) attributable to noncontrolling interest | ' | 1,359 | ' | ' |
Effects of changes in Athlon's partnership interest in Holdings on Athlon's equity | ' | ' | ' | ' |
Net income attributable to stockholders | ' | 58,435 | 53,014 | -1,129 |
Transfer from noncontrolling interest: | ' | ' | ' | ' |
Shares of common stock in public offering | 15,789,474 | ' | ' | ' |
Athlon Holdings GP LLC | ' | ' | ' | ' |
Noncontrolling interest | ' | ' | ' | ' |
Ownership interest in general partner of Holdings (as a percent) | ' | 100.00% | ' | ' |
Holdings | ' | ' | ' | ' |
Noncontrolling interest | ' | ' | ' | ' |
Percentage of ownership interest of management and certain employees (as a percent) | 3.20% | 2.20% | ' | ' |
Effects of changes in Athlon's partnership interest in Holdings on Athlon's equity | ' | ' | ' | ' |
Net income attributable to stockholders | ' | 59,063 | ' | ' |
Transfer from noncontrolling interest: | ' | ' | ' | ' |
Increase in Athlon's paid-in capital for corporate reorganization | ' | 292,549 | ' | ' |
Increase in Athlon's paid-in capital for issuance of 15,789,474 shares of common stock in initial public offering | ' | 295,498 | ' | ' |
Shares of common stock in public offering | ' | 15,789,474 | ' | ' |
Net transfer from noncontrolling interest | ' | 588,047 | ' | ' |
Change from net income attributable to stockholders and transfers from noncontrolling interest | ' | $647,110 | ' | ' |
Holdings | Class A limited partners | ' | ' | ' | ' |
Noncontrolling interest | ' | ' | ' | ' |
Percentage of ownership interest of management and certain employees (as a percent) | 3.20% | 2.20% | ' | ' |
Exchange Agreement Number of New Units Exchangeable Against Limited Partner Interest | 1,855,563 | ' | ' | ' |
Number of common stock exchangeable against each unit | ' | 1 | ' | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Oct. 03, 2011 | Dec. 31, 2011 | Oct. 03, 2011 | Jan. 06, 2011 | Jan. 06, 2011 | |
Element | Element | Element | SandRidge | SandRidge | |
Apollo | Apollo | ||||
Acquisitions | ' | ' | ' | ' | ' |
Cash paid for acquisition | $253,200,000 | ' | ' | $156,000,000 | ' |
Transaction costs incurred | 6,400,000 | ' | 4,300,000 | 2,600,000 | 2,300,000 |
Allocation of the purchase price to the fair value of the assets acquired and liabilities assumed | ' | ' | ' | ' | ' |
Proved properties, including wells and related equipment | 130,527,000 | ' | ' | 158,157,000 | ' |
Unproved properties | 123,107,000 | ' | ' | ' | ' |
Other assets | 806,000 | ' | ' | ' | ' |
Oil inventory | ' | ' | ' | 637,000 | ' |
Total assets acquired | 254,440,000 | ' | ' | 158,794,000 | ' |
Current liabilities | 831,000 | ' | ' | ' | ' |
Asset retirement obligations | 393,000 | ' | ' | 2,778,000 | ' |
Total liabilities assumed | 1,224,000 | ' | ' | ' | ' |
Fair value of net assets acquired | 253,216,000 | ' | ' | 156,016,000 | ' |
Unaudited pro forma condensed financial data | ' | ' | ' | ' | ' |
Pro forma total revenues | ' | 89,618,000 | ' | ' | ' |
Pro forma net income attributable to stockholders | ' | $9,777,000 | ' | ' | ' |
Pro forma net income (loss) per common share: | ' | ' | ' | ' | ' |
Basic (in dollar per share) | ' | $0.15 | ' | ' | ' |
Diluted (in dollar per share) | ' | $0.14 | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Level 1 input, USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Level 1 input | ' |
Fair value measurements | ' |
Senior notes | $522.80 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2011 | Jan. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
Open commodity derivative contracts | Open commodity derivative contracts | Open commodity derivative contracts | Open commodity derivative contracts | Commodity derivative contracts with swap price | Commodity derivative contracts with swap price | |||||||
2014 | 2015 | 2014 | 2015 | |||||||||
bbl | bbl | |||||||||||
Summary of open commodity derivative contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average Daily Swap Volume | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,950 | 1,300 |
Weighted-Average Swap Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92.67 | 93.18 |
Asset (Liability) Fair Market Value | ' | ' | ' | ' | ' | ' | ($6,024,000) | $3,989,000 | ($8,354,000) | $2,330,000 | ' | ' |
Net proceeds from monetization of put options | ' | 7,600,000 | ' | ' | ' | 7,625,000 | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | 200,000 | 36,669,000 | 9,951,000 | 2,945,000 | ' | ' | ' | ' | ' | ' |
Initial payment of premiums | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (Master netting agreements, BNP Paribas, USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Master netting agreements | BNP Paribas | ' |
Counterparty risk | ' |
Fair Market Value of Oil Derivative Contracts Committed | $1,082 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (Commodity contracts, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Liabilities | ' | ' |
Net assets (liabilities) | ($6,024) | $3,989 |
Derivative instruments not designated as hedging instruments | Oil | ' | ' |
Assets | ' | ' |
Oil Commodity Derivatives, assets | 2,473 | 6,651 |
Commodity Derivatives Netting, assets | -143 | -1,551 |
Total Commodity Derivatives | 2,330 | 5,100 |
Liabilities | ' | ' |
Oil Commodity Derivatives, liabilities | -8,497 | -2,662 |
Commodity Derivatives Netting, liabilities | 143 | 1,551 |
Total Commodity Derivatives | -8,354 | -1,111 |
Net assets (liabilities) | -6,024 | 3,989 |
Derivative instruments not designated as hedging instruments | Oil | Derivative assets - current | ' | ' |
Assets | ' | ' |
Oil Commodity Derivatives, assets | 143 | 3,386 |
Commodity Derivatives Netting, assets | -143 | -1,140 |
Total Commodity Derivatives | ' | 2,246 |
Derivative instruments not designated as hedging instruments | Oil | Derivative assets - noncurrent | ' | ' |
Assets | ' | ' |
Oil Commodity Derivatives, assets | 2,330 | 3,265 |
Commodity Derivatives Netting, assets | ' | -411 |
Total Commodity Derivatives | 2,330 | 2,854 |
Derivative instruments not designated as hedging instruments | Oil | Derivative liabilities - current | ' | ' |
Liabilities | ' | ' |
Oil Commodity Derivatives, liabilities | -8,497 | -1,732 |
Commodity Derivatives Netting, liabilities | 143 | 1,140 |
Total Commodity Derivatives | -8,354 | -592 |
Derivative instruments not designated as hedging instruments | Oil | Derivative liabilities - noncurrent | ' | ' |
Liabilities | ' | ' |
Oil Commodity Derivatives, liabilities | ' | -930 |
Commodity Derivatives Netting, liabilities | ' | 411 |
Total Commodity Derivatives | ' | ($519) |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details 5) (Derivative instruments not designated as hedges, Commodity contracts, Derivative fair value loss (gain), USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative instruments not designated as hedges | Commodity contracts | Derivative fair value loss (gain) | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Amount of Loss (Gain) Recognized in Income | $18,115 | ($9,293) | $7,959 |
Fair_Value_Measurements_Detail5
Fair Value Measurements (Details 6) (Commodity contracts, USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Hierarchy | ' | ' |
Increase (decrease) in net commodity derivative assets (liabilities) | ($39,000) | $125,000 |
Recurring | Net Asset (Liability) | Oil | ' | ' |
Fair Value Hierarchy | ' | ' |
Total | ' | 3,989,000 |
Recurring | Net Asset (Liability) | Oil | Swaps | ' | ' |
Fair Value Hierarchy | ' | ' |
Total | -6,024,000 | 4,069,000 |
Recurring | Net Asset (Liability) | Oil | Collars | ' | ' |
Fair Value Hierarchy | ' | ' |
Total | ' | -80,000 |
Recurring | Significant Other Observable Inputs (Level 2) | Oil | ' | ' |
Fair Value Hierarchy | ' | ' |
Total | ' | 3,989,000 |
Recurring | Significant Other Observable Inputs (Level 2) | Oil | Swaps | ' | ' |
Fair Value Hierarchy | ' | ' |
Total | -6,024,000 | 4,069,000 |
Recurring | Significant Other Observable Inputs (Level 2) | Oil | Collars | ' | ' |
Fair Value Hierarchy | ' | ' |
Total | ' | ($80,000) |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Asset retirement obligations | ' | ' | ' |
Balance at the beginning of the period | $5,049 | $3,704 | ' |
Liabilities assumed in acquisitions | 395 | 60 | ' |
Liabilities incurred from new wells | 1,013 | 815 | ' |
Liabilities settled | -283 | ' | ' |
Accretion of discount | 675 | 478 | 344 |
Revisions of previous estimates | 6 | -8 | ' |
Balance at the end of the period | 6,855 | 5,049 | 3,704 |
Less: current portion | 60 | ' | ' |
Asset retirement obligations - long-term | $6,795 | $5,049 | ' |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 30, 2013 | 31-May-13 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Credit agreement | Former second lien term loan | ||||
Upon assets disposition triggering events | Prior to April 15, 2016 | Prior to April 15, 2016 | On or prior to July 15, 2014 | Maximum | Maximum | Applicable Margin for Eurodollar Loans | Applicable Margin for Eurodollar Loans | Applicable Margin for Base Rate Loans | Applicable Margin for Base Rate Loans | Applicable Margin for Base Rate Loans | Applicable Margin for Base Rate Loans | Applicable Margin for Base Rate Loans | Less than or equal to .30 to 1 | Less than or equal to .30 to 1 | Less than or equal to .30 to 1 | Greater than .30 to 1 but less than or equal to .60 to 1 | Greater than .30 to 1 but less than or equal to .60 to 1 | Greater than .30 to 1 but less than or equal to .60 to 1 | Greater than .60 to 1 but less than or equal to .80 to 1 | Greater than .60 to 1 but less than or equal to .80 to 1 | Greater than .60 to 1 but less than or equal to .80 to 1 | Greater than .80 to 1 but less than or equal to .90 to 1 | Greater than .80 to 1 but less than or equal to .90 to 1 | Greater than .80 to 1 but less than or equal to .90 to 1 | Greater than .90 to 1 | Greater than .90 to 1 | Greater than .90 to 1 | Maximum | Maximum | Maximum | Maximum | Maximum | Minimum | Minimum | Minimum | |||||||||||
Redemption from proceeds of certain equity offerings | Redemption of debt instrument upon change of control | Prior to April 15, 2016 | Eurodollar rate | LIBOR | Eurodollar rate | LIBOR | Base Rate | Prime rate | Federal funds rate | Applicable Margin for Eurodollar Loans | Applicable Margin for Base Rate Loans | Applicable Margin for Eurodollar Loans | Applicable Margin for Base Rate Loans | Applicable Margin for Eurodollar Loans | Applicable Margin for Base Rate Loans | Applicable Margin for Eurodollar Loans | Applicable Margin for Base Rate Loans | Applicable Margin for Eurodollar Loans | Applicable Margin for Base Rate Loans | Less than or equal to .30 to 1 | Greater than .30 to 1 but less than or equal to .60 to 1 | Greater than .60 to 1 but less than or equal to .80 to 1 | Greater than .80 to 1 but less than or equal to .90 to 1 | Greater than .90 to 1 | Greater than .30 to 1 but less than or equal to .60 to 1 | Greater than .60 to 1 but less than or equal to .80 to 1 | Greater than .80 to 1 but less than or equal to .90 to 1 | |||||||||||||||||||
Redemption from proceeds of certain equity offerings | ||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount of notes issued | ' | ' | ' | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | 7.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution paid to Holdings' Class A limited partners | 75,000,000 | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of aggregate principal amount of notes that can be redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price of debt instrument (as a percent) | ' | ' | ' | ' | ' | 101.00% | 100.00% | 107.38% | 110.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write off of unamortized debt issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 |
Maximum amount committed by lender | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 525,000,000 | 525,000,000 | 320,000,000 | 267,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of Outstanding Borrowings to Borrowing Base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.3 | 0.6 | 0.8 | 0.9 | 0.9 | 0.3 | 0.6 | 0.8 | ' |
Unused Commitment Fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | ' | ' | 0.38% | ' | ' | 0.50% | ' | ' | 0.50% | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable Margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | 0.50% | ' | 1.50% | 0.50% | ' | 1.75% | 0.75% | ' | 2.00% | 1.00% | ' | 2.25% | 1.25% | ' | 2.50% | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Eurodollar rate | 'LIBOR | 'Eurodollar rate | 'LIBOR | 'Base Rate | 'prime rate | 'Federal fund | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of consolidated total debt to EBITDAX beginning with quarter ended June 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of consolidated total debt to EBITDAX beginning with quarter ended June 30, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum projected production that can be hedged (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period over which hedging limitation requirement of the projected production from proved reserve is required to be maintained | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '66 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-Term Debt Maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 500,000,000 | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $500,000,000 | ' | ' | ' | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average interest rate (as a percent) | 7.60% | 4.30% | 3.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Aug. 07, 2013 | Apr. 26, 2013 | Apr. 02, 2013 | Dec. 31, 2013 | |
Stockholders' Equity | ' | ' | ' | ' |
Common stock issued at incorporation (in shares) | ' | ' | 1,000 | ' |
Aggregate purchase price of common stock issued at incorporation (in dollars) | ' | ' | $10 | ' |
Common stock issued in connection with corporate reorganization to certain holders of Class A and Class B limited partner interests in Holdings (in shares) | ' | 960,907 | ' | ' |
Issue price of IPO (in dollars per share) | $20 | ' | ' | ' |
Stock split ratio | 65.266 | ' | ' | 65.266 |
Outstanding common stock shares prior to closing of IPO | 66,339,615 | ' | ' | ' |
Shares of common stock issued in IPO | 15,789,474 | ' | ' | ' |
Net proceeds from IPO, after deducting underwriting discounts and commissions and offering expenses (in dollars) | $295,700,000 | ' | ' | $295,697,000 |
Preferred Stock | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | ' | 50,000,000 |
Preferred stock, shares issued | ' | ' | ' | 0 |
Preferred stock, shares outstanding | ' | ' | ' | 0 |
Holdings | ' | ' | ' | ' |
Stockholders' Equity | ' | ' | ' | ' |
Shares of common stock issued in IPO | ' | ' | ' | 15,789,474 |
Stockholders' equity | ' | ' | ' | ' |
Percentage of ownership noncontrolling interest | 3.20% | ' | ' | 2.20% |
Taxes_Details
Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Federal: | ' | ' | ' |
Current | $1,135 | ' | ' |
Deferred | 17,022 | ' | ' |
Total federal | 18,157 | ' | ' |
State, net of federal benefit: | ' | ' | ' |
Deferred | 993 | 1,928 | 470 |
Total state | 993 | 1,928 | 470 |
Income tax provision | 19,150 | 1,928 | 470 |
Reconciliation of income tax benefit (provision) with income tax at the Federal statutory rate | ' | ' | ' |
Income (loss) before income taxes | 79,572 | 54,942 | -659 |
Less: net income prior to corporate reorganization | -27,320 | ' | ' |
Less: net income attributable to noncontrolling interest | -1,359 | ' | ' |
Income (loss) before income taxes and noncontrolling interest subsequent to corporate reorganization | 50,893 | 54,942 | -659 |
Income taxes at the Federal statutory rate | 17,813 | ' | ' |
State income taxes, net of federal benefit | 933 | 549 | 21 |
Provision to return adjustment | 59 | ' | ' |
Permanent and other | 345 | 1,379 | 449 |
Income tax provision | 19,150 | 1,928 | 470 |
Assets: | ' | ' | ' |
Derivative fair value loss | 480 | ' | ' |
Total current deferred tax assets | 480 | ' | ' |
Liabilities: | ' | ' | ' |
Prepaid insurance | -100 | -8 | ' |
Derivative fair value gain | ' | -50 | ' |
Total current deferred tax liabilities | -100 | -58 | ' |
Net current deferred tax asset (liability) | 380 | ' | ' |
Assets: | ' | ' | ' |
Alternative minimum tax credits | 1,135 | ' | ' |
Derivative fair value loss | 2,080 | 60 | ' |
Net operating loss carryforward | 43,164 | ' | ' |
Asset retirement obligations | 519 | 8 | ' |
Deferred equity-based compensation | 1,406 | ' | ' |
Acquisition cost capitalized | 3,351 | 95 | ' |
Other | 1,840 | 25 | ' |
Total long-term deferred tax assets | 53,495 | 188 | ' |
Liabilities: | ' | ' | ' |
Book basis of oil and natural gas properties in excess of tax basis | -145,892 | -2,528 | ' |
Total long-term deferred tax liabilities | -145,892 | -2,528 | ' |
Net long-term deferred tax liability | -92,397 | -2,340 | ' |
Federal | ' | ' | ' |
Carryforwards and credits | ' | ' | ' |
Federal AMT Credits | 1,135 | ' | ' |
Federal NOL | 123,325 | ' | ' |
2031 | Federal | ' | ' | ' |
Carryforwards and credits | ' | ' | ' |
Federal NOL | 2,433 | ' | ' |
2032 | Federal | ' | ' | ' |
Carryforwards and credits | ' | ' | ' |
Federal NOL | 77,749 | ' | ' |
2033 | Federal | ' | ' | ' |
Carryforwards and credits | ' | ' | ' |
Federal NOL | 43,143 | ' | ' |
Indefinite | Federal | ' | ' | ' |
Carryforwards and credits | ' | ' | ' |
Federal AMT Credits | $1,135 | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Aug. 07, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2013 |
Earnings Per Share | ' | ' | ' | ' | ' |
Outstanding common stock prior to consummation of IPO (in shares) | ' | ' | ' | ' | 960,907 |
Issue price of IPO (in dollars per share) | $20 | ' | ' | ' | ' |
Stock split ratio | 65.266 | 65.266 | ' | ' | ' |
Outstanding common stock shares prior to closing of IPO | 66,339,615 | ' | ' | ' | ' |
Conversion of units into common stock | ' | 1 | ' | ' | ' |
Numerator: | ' | ' | ' | ' | ' |
Undistributed net income (loss) attributable to stockholders | ' | $59,063 | $53,014 | ($1,129) | ' |
Participation rights of unvested RSUs in undistributed earnings | ' | -628 | ' | ' | ' |
Basic undistributed net income (loss) attributable to stockholders | ' | 58,435 | 53,014 | -1,129 | ' |
Denominator: | ' | ' | ' | ' | ' |
Basic weighted average shares outstanding | ' | 72,915,000 | 66,340,000 | 66,340,000 | ' |
Basic EPS attributable to stockholders (in dollars per share) | ' | $0.80 | $0.80 | ($0.02) | ' |
Numerator: | ' | ' | ' | ' | ' |
Undistributed net income (loss) attributable to stockholders | ' | 59,063 | 53,014 | -1,129 | ' |
Participation rights of unvested RSUs in undistributed earnings, diluted | ' | -613 | ' | ' | ' |
Effect of conversion of New Holdings Units to shares of Athlon's common stock | ' | 1,359 | ' | ' | ' |
Diluted undistributed net income (loss) attributable to stockholders | ' | $59,809 | $53,014 | ($1,129) | ' |
Denominator: | ' | ' | ' | ' | ' |
Basic weighted average shares outstanding | ' | 72,915,000 | 66,340,000 | 66,340,000 | ' |
Effect of conversion of New Holdings Units to shares of Athlon's common stock | ' | 1,856,000 | 1,856,000 | ' | ' |
Diluted weighted average shares outstanding | ' | 74,771,000 | 68,196,000 | 66,340,000 | ' |
Diluted EPS attributable to stockholders (in dollars per share) | ' | $0.80 | $0.78 | ($0.02) | ' |
Antidilutive New Holdings Units excluded from EPS calculations (in shares) | ' | ' | ' | 1,855,563 | ' |
Employment_Benefit_Plans_Detai
Employment Benefit Plans (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Aug. 07, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
401(k) Plan | ' | ' | ' | ' |
Employers contributions | ' | $585,000 | $454,000 | $219,000 |
Incentive award plan | ' | ' | ' | ' |
Non-cash equity-based compensation expense | ' | 5,307,000 | 152,000 | 106,000 |
2013 Incentive Award Plan | ' | ' | ' | ' |
Incentive award plan | ' | ' | ' | ' |
Aggregate shares of common stock available for issuance under the 2013 stock incentive plan | ' | 8,400,000 | ' | ' |
Remaining shares available for grant | ' | 7,761,087 | ' | ' |
Non-cash equity-based compensation expense | ' | 4,000,000 | ' | ' |
Capitalized non-cash equity-based compensation expense | ' | 263,000 | ' | ' |
2013 Incentive Award Plan | RSUs | ' | ' | ' | ' |
Incentive award plan | ' | ' | ' | ' |
Vesting period of RSU's | ' | '3 years | ' | ' |
Unvested RSUs | ' | ' | ' | ' |
Granted (in shares) | ' | 638,913 | ' | ' |
Weighted - Average Grant Date Fair Value | ' | ' | ' | ' |
Granted (in dollars per share) | ' | $34.88 | ' | ' |
Outstanding at end of the period (in dollars per share) | ' | $34.88 | ' | ' |
Additional disclosure | ' | ' | ' | ' |
Unvested RSUs subject to variable accounting (in shares) | ' | 0 | ' | ' |
Total unrecognized compensation cost related to unvested RSU's | ' | 16,600,000 | ' | ' |
Weighted-average period for recognition of unrecognized compensation cost | ' | '2 years 7 months 6 days | ' | ' |
2013 Incentive Award Plan | RSUs | Vesting of awards subject to time and continued employment condition | ' | ' | ' | ' |
Unvested RSUs | ' | ' | ' | ' |
Outstanding at end of the period (in shares) | ' | 411,413 | ' | ' |
Additional disclosure | ' | ' | ' | ' |
Unvested RSUs granted, vesting of which is dependent on passage of specified time and continued employment condition (in shares) | ' | 411,413 | ' | ' |
Vesting of awards in 2014 (in shares) | ' | 137,138 | ' | ' |
Vesting of awards in 2015 (in shares) | ' | 137,138 | ' | ' |
Vesting of awards in 2016 (in shares) | ' | 137,137 | ' | ' |
Outstanding RSUs | ' | 411,413 | ' | ' |
2013 Incentive Award Plan | RSUs | Vesting of awards subject to time, continued employment and performance condition | ' | ' | ' | ' |
Unvested RSUs | ' | ' | ' | ' |
Outstanding at end of the period (in shares) | ' | 227,500 | ' | ' |
Additional disclosure | ' | ' | ' | ' |
Unvested RSUs granted, vesting of which is dependent on passage of specified time and continued employment and also on performance condition (in shares) | ' | 227,500 | ' | ' |
Vesting of awards in 2014 (in shares) | ' | 75,834 | ' | ' |
Vesting of awards in 2015 (in shares) | ' | 75,833 | ' | ' |
Vesting of awards in 2016 (in shares) | ' | 75,833 | ' | ' |
Outstanding RSUs | ' | 227,500 | ' | ' |
Percentage of maximum number of shares that could be earned under the performance-based awards | ' | 50.00% | ' | ' |
Percentage of designated target vesting levels under the performance-based awards | ' | 100.00% | ' | ' |
Maximum | 2013 Incentive Award Plan | ' | ' | ' | ' |
Incentive award plan | ' | ' | ' | ' |
Aggregate shares of common stock available for issuance under the 2013 stock incentive plan at January 1, 2014 under first condition | ' | 12,000,000 | ' | ' |
Percentage increase to shares of common stock available for issuance under the 2013 stock incentive plan at January 1, 2014 under second condition | ' | 4.00% | ' | ' |
Maximum | 2013 Incentive Award Plan | Non-employee directors | ' | ' | ' | ' |
Incentive award plan | ' | ' | ' | ' |
Grant date fair value of awards | ' | 700,000 | ' | ' |
Holdings | Class B limited partners | ' | ' | ' | ' |
Incentive award plan | ' | ' | ' | ' |
Non-cash equity-based compensation expense | 1,500,000 | 1,300,000 | 152,000 | 106,000 |
Capitalized non-cash equity-based compensation expense | ' | $415,000 | $93,000 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating leases, payments due by period | ' | ' | ' |
Total | $1,316,000 | ' | ' |
2014 | 467,000 | ' | ' |
2015 | 471,000 | ' | ' |
2016 | 378,000 | ' | ' |
Operating lease rental expense | 490,000 | 507,000 | 272,000 |
Minimum | ' | ' | ' |
Leases | ' | ' | ' |
Non-cancelable lease terms | '1 year | ' | ' |
Corporate office lease | ' | ' | ' |
Operating leases, payments due by period | ' | ' | ' |
Total | 1,031,000 | ' | ' |
2014 | 375,000 | ' | ' |
2015 | 375,000 | ' | ' |
2016 | 281,000 | ' | ' |
Midland office lease | ' | ' | ' |
Operating leases, payments due by period | ' | ' | ' |
Total | 285,000 | ' | ' |
2014 | 92,000 | ' | ' |
2015 | 96,000 | ' | ' |
2016 | $97,000 | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | 35 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 07, 2013 | |
Related party transactions | ' | ' | ' | ' |
Termination fee | $2,408,000 | ' | ' | ' |
Distribution paid to Holdings' Class A limited partners | 75,000,000 | ' | ' | ' |
Number of common stock exchangeable against each unit | 1 | ' | ' | ' |
Percentage of income tax benefits distributable to holders of New Holdings Units | 85.00% | ' | ' | ' |
Apollo | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' |
Transaction fee as a percentage of total equity contributed | 2.00% | ' | ' | ' |
Transaction fees | ' | ' | ' | 7,500,000 |
Consulting and advisory fee as percentage of EBITDAX under first condition | 1.00% | ' | ' | ' |
Advisory fee per quarter under second condition | 62,500 | ' | ' | ' |
Maximum advisory fee per calendar year | 500,000 | ' | ' | ' |
Advisory fee | 500,000 | 493,000 | 411,000 | ' |
Termination fee | 2,400,000 | ' | ' | ' |
Unreimbursed fee on termination of the service agreement | 132,000 | ' | ' | ' |
Apollo Global Securities, LLC | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' |
Proceeds from gross spread | 500,000 | ' | ' | ' |
Payment of discounts and commissions to underwriters in IPO | 900,000 | ' | ' | ' |
Apollo funds | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' |
Distribution paid to Holdings' Class A limited partners | 73,000,000 | ' | ' | ' |
Management team and certain employees | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' |
Distribution paid to Holdings' Class A limited partners | $2,000,000 | ' | ' | ' |
Number of common stock exchangeable against each unit | 1 | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Feb. 06, 2014 | Mar. 07, 2014 | Mar. 07, 2014 | Mar. 07, 2014 | Mar. 07, 2014 | Mar. 07, 2014 | Mar. 07, 2014 | Mar. 07, 2014 | Mar. 07, 2014 | Mar. 07, 2014 | Mar. 07, 2014 |
In Millions, unless otherwise specified | Commodity derivative contracts with swap price | Commodity derivative contracts with swap price | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event |
2014 | 2015 | Midland Basin | Commodity derivative contracts with swap price | Commodity derivative contracts with swap price | Commodity derivative contracts with swap price | Commodity derivative contracts with swap price | Commodity derivative contracts with swap price | Commodity derivative contracts with swap price | Commodity derivative contracts with swap price | Commodity derivative contracts with swap price | Commodity derivative contracts with swap price | Commodity derivative contracts with swap price | |
bbl | bbl | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | 2014 | 2015 | ||
Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | Oil | ||||
bbl | bbl | bbl | bbl | bbl | bbl | bbl | bbl | bbl | bbl | ||||
Subsequent events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average Daily Swap Volume | 7,950 | 1,300 | ' | 8,606 | 8,950 | 9,950 | 9,950 | 4,300 | 4,300 | 1,300 | 1,300 | 9,369 | 2,788 |
Weighted-Average Swap Price | 92.67 | 93.18 | ' | 92.7 | 92.71 | 92.52 | 92.52 | 91.29 | 91.29 | 93.18 | 93.18 | 92.61 | 91.74 |
Cash paid for acquisition | ' | ' | $88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in purchase price | ' | ' | $8.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |