Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MRD | |
Entity Registrant Name | MEMORIAL RESOURCE DEVELOPMENT CORP. | |
Entity Central Index Key | 1599222 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 190,776,618 |
UNAUDITED_CONDENSED_CONSOLIDAT
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $4,512 | $5,958 |
Accounts receivable: | ||
Oil and natural gas sales | 61,649 | 82,263 |
Joint interest owners and other | 56,750 | 49,313 |
Affiliates | 1,976 | |
Short-term derivative instruments | 357,060 | 340,056 |
Prepaid expenses and other current assets | 32,133 | 28,027 |
Total current assets | 514,080 | 505,617 |
Property and equipment, at cost: | ||
Oil and natural gas properties, successful efforts method | 5,014,671 | 4,844,529 |
Other | 35,882 | 33,815 |
Accumulated depreciation, depletion and impairment | -1,683,953 | -1,340,688 |
Property and equipment, net | 3,366,600 | 3,537,656 |
Long-term derivative instruments | 578,153 | 435,369 |
Restricted investments | 78,787 | 77,361 |
Other long-term assets | 36,602 | 37,544 |
Total assets | 4,574,222 | 4,593,547 |
Current liabilities: | ||
Accounts payable | 42,069 | 25,772 |
Accounts payable - affiliates | 624 | |
Revenues payable | 58,331 | 57,352 |
Accrued liabilities | 217,669 | 199,000 |
Short-term derivative instruments | 3,300 | 3,289 |
Total current liabilities | 321,369 | 286,037 |
Noncurrent liabilities: | ||
Asset retirement obligations | 124,476 | 122,531 |
Long-term derivative instruments | 555 | |
Deferred tax liabilities | 111,790 | 95,017 |
Other long-term liabilities | 7,566 | 8,585 |
Total liabilities | 3,063,801 | 2,890,583 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity (deficit): | ||
Preferred stock, $.01 par value: 50,000,000 shares authorized; no shares issued and outstanding | ||
Common stock, $.01 par value: 600,000,000 shares authorized; 190,776,618 shares issued and outstanding at March 31, 2015; 193,435,414 shares issued and outstanding at December 31, 2014 | 1,908 | 1,935 |
Additional paid-in capital | 1,234,194 | 1,367,346 |
Accumulated earnings (deficit) | -788,736 | -786,871 |
Total stockholders' equity | 447,366 | 582,410 |
Noncontrolling interests | 1,063,055 | 1,120,554 |
Total equity | 1,510,421 | 1,702,964 |
Total liabilities and equity | 4,574,222 | 4,593,547 |
MRD [Member] | ||
Noncurrent liabilities: | ||
Long-term debt | 744,000 | 783,000 |
MEMP [Member] | ||
Noncurrent liabilities: | ||
Long-term debt | 1,754,045 | 1,595,413 |
Deferred tax liabilities | $29,200 |
UNAUDITED_CONDENSED_CONSOLIDAT1
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $0.01 | |
Preferred stock, shares authorized | 50,000,000 | |
Preferred stock, shares issued | 0 | |
Preferred stock, shares outstanding | 0 | |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 190,776,618 | 193,435,414 |
Common stock, shares outstanding | 190,776,618 | 193,435,414 |
UNAUDITED_CONDENSED_STATEMENTS
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED AND COMBINED OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Oil & natural gas sales | $178,972 | $203,710 |
Other revenues | 869 | 911 |
Total revenues | 179,841 | 204,621 |
Costs and expenses: | ||
Lease operating | 45,700 | 33,355 |
Gathering, processing, and transportation | 22,983 | 14,120 |
Pipeline operating | 446 | 489 |
Exploration | 816 | 146 |
Production and ad valorem taxes | 9,430 | 8,584 |
Depreciation, depletion, and amortization | 91,798 | 57,679 |
Impairment of proved oil and natural gas properties | 251,347 | |
Incentive unit compensation expense (Note 12) | 10,224 | 1,023 |
General and administrative | 27,487 | 17,739 |
Accretion of asset retirement obligations | 1,757 | 1,521 |
(Gain) loss on commodity derivative instruments | -253,649 | 59,482 |
(Gain) loss on sale of properties | -110 | |
Other, net | -12 | |
Total costs and expenses | 208,339 | 194,016 |
Operating income (loss) | -28,498 | 10,605 |
Other income (expense): | ||
Interest expense, net | -38,574 | -34,052 |
Other, net | 111 | 31 |
Total other income (expense) | -38,463 | -34,021 |
Income (loss) before income taxes | -66,961 | -23,416 |
Income tax benefit (expense) | -45,188 | -100 |
Net income (loss) | -112,149 | -23,516 |
Net income (loss) attributable to noncontrolling interest | -158,041 | -31,888 |
Net income (loss) attributable to Memorial Resource Development Corp. | 45,892 | 8,372 |
Net (income) loss allocated to members | -6,947 | |
Net (income) loss allocated to previous owners | -1,425 | |
Net (income) allocated to participating restricted stockholders | -277 | |
Net income (loss) available to common stockholders | $45,615 | $0 |
Earnings per common share: (Note 10) | ||
Basic | $0.24 | |
Diluted | $0.24 | |
Weighted average common and common equivalent shares outstanding: | ||
Basic | 190,705 | |
Diluted | 190,705 |
UNAUDITED_CONDENSED_STATEMENTS1
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED AND COMBINED CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | ($112,149) | ($23,516) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion, and amortization | 91,798 | 57,679 |
Impairment of proved oil and natural gas properties | 251,347 | |
(Gain) loss on derivatives | -251,208 | 59,993 |
Cash settlements (paid) received on expired derivative instruments | 91,985 | -13,309 |
Cash settlements on terminated derivatives | 27,063 | |
Premiums paid for derivatives | -27,063 | |
Amortization of deferred financing costs | 2,515 | 1,899 |
Accretion of senior notes net discount | 599 | 713 |
Accretion of asset retirement obligations | 1,757 | 1,521 |
Amortization of equity awards | 3,827 | 1,295 |
(Gain) loss on sale of properties | -110 | |
Non-cash compensation expense | 10,224 | |
Deferred income tax expense (benefit) | 43,188 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 13,719 | -3,951 |
Prepaid expenses and other assets | -561 | 2,832 |
Payables and accrued liabilities | 25,875 | 18,895 |
Other | -1,100 | |
Net cash provided by operating activities | 171,816 | 103,941 |
Cash flows from investing activities: | ||
Acquisitions of oil and natural gas properties | -3,305 | -173,000 |
Additions to oil and gas properties | -160,994 | -134,200 |
Additions to other property and equipment | -1,947 | -31 |
Additions to restricted investments | -1,426 | -826 |
Other | -304 | |
Net cash used in investing activities | -167,672 | -308,361 |
Cash flows from financing activities: | ||
Advances on revolving credit facilities | 270,000 | 343,000 |
Payments on revolving credit facilities | -148,000 | -79,000 |
Deferred financing costs | -10 | -1,162 |
Distributions to noncontrolling interests | -46,239 | -31,085 |
Other | -7 | -7 |
Net cash provided by financing activities | -5,590 | 166,218 |
Net change in cash and cash equivalents | -1,446 | -38,202 |
Cash and cash equivalents, beginning of period | 5,958 | 77,721 |
Cash and cash equivalents, end of period | 4,512 | 39,519 |
Supplemental cash flows: | ||
Cash paid for interest, net of capitalized interest | 39,203 | 8,838 |
Cash paid for taxes | 2,055 | |
Noncash investing and financing activities: | ||
Change in capital expenditures in payables and accrued liabilities | 4,589 | 10,668 |
Assumptions of asset retirement obligations related to properties acquired or drilled | 39 | 433 |
Accounts receivable related to acquisitions and divestitures | 3,879 | |
MEMP [Member] | ||
Cash flows from financing activities: | ||
Repurchase of MEMP senior notes | -2,914 | |
Equity repurchases | -28,420 | |
MRD [Member] | ||
Cash flows from financing activities: | ||
Equity repurchases | -50,000 | |
Natural Gas Partners [Member] | ||
Cash flows from financing activities: | ||
Contributions from NGP affiliates related to sale of assets | 1,165 | |
Distribution to NGP affiliates related to sale of assets | ($66,693) |
UNAUDITED_CONDENSED_STATEMENTS2
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED AND COMBINED EQUITY (USD $) | Total | MEMP [Member] | Member Equity [Member] | Common Stock [Member] | Additional paid in capital [Member] | Accumulated earnings (deficit) [Member] | Previous Owners [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] |
In Thousands | Member Equity [Member] | MEMP [Member] | |||||||
Members' equity, beginning balance at Dec. 31, 2013 | $237,186 | $40,331 | |||||||
Noncontrolling interests, beginning balance at Dec. 31, 2013 | 580,615 | ||||||||
Total equity, beginning balance at Dec. 31, 2013 | 858,132 | ||||||||
Net income (loss) | -23,516 | 6,947 | 1,425 | -31,888 | |||||
Contribution related to sale of assets to NGP affiliate | 1,165 | 1,165 | |||||||
Net book value of assets sold to NGP affiliate | -621 | -621 | |||||||
Distributions | -31,085 | -31,085 | |||||||
Net book value of assets acquired from NGP affiliates | 3,303 | 45,059 | -41,756 | ||||||
Distribution to NGP affiliates in connection with acquisition of assets | -66,693 | -66,693 | |||||||
Amortization of MEMP equity awards | 1,295 | 1,295 | |||||||
Other | 333 | -154 | 487 | ||||||
Members' equity, ending balance at Mar. 31, 2014 | 222,889 | ||||||||
Noncontrolling interests, ending balance at Mar. 31, 2014 | 519,424 | ||||||||
Total equity, ending balance at Mar. 31, 2014 | 742,313 | ||||||||
Total stockholders equity, beginning balance at Dec. 31, 2014 | 582,410 | 1,935 | 1,367,346 | -786,871 | |||||
Noncontrolling interests, beginning balance at Dec. 31, 2014 | 1,120,554 | 1,120,554 | |||||||
Total equity, beginning balance at Dec. 31, 2014 | 1,702,964 | ||||||||
Net income (loss) | -112,149 | 45,892 | -158,041 | ||||||
Share repurchase | -47,785 | -28,420 | -28 | -47,757 | -28,420 | ||||
Restricted stock awards | 1 | -1 | |||||||
Amortization of restricted stock awards | 1,486 | 1,486 | |||||||
Contribution related to MRD Holdco incentive unit compensation expense (Note 12) | 10,224 | 10,224 | |||||||
Net equity deemed contribution (distribution) related to MEMP property exchange (Note 1) | -172,869 | 172,869 | |||||||
Deferred tax effect of MEMP property exchange (Note 2) | 28,020 | 28,020 | |||||||
Distributions | -46,239 | -46,239 | |||||||
Amortization of MEMP equity awards | 2,341 | 2,341 | |||||||
MEMP restricted units repurchased | -7 | -7 | |||||||
Other | -14 | -12 | -2 | ||||||
Total stockholders equity, ending balance at Mar. 31, 2015 | 447,366 | 1,908 | 1,234,194 | -788,736 | |||||
Noncontrolling interests, ending balance at Mar. 31, 2015 | 1,063,055 | 1,063,055 | |||||||
Total equity, ending balance at Mar. 31, 2015 | $1,510,421 |
Background_Organization_and_Ba
Background, Organization and Basis of Presentation | 3 Months Ended | |
Mar. 31, 2015 | ||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Background, Organization and Basis of Presentation | Note 1. Background, Organization and Basis of Presentation | |
Overview | ||
Memorial Resource Development Corp. (the “Company”) is a publicly traded Delaware corporation, the common shares of which are listed on the NASDAQ Global Market (“NASDAQ”) under the symbol “MRD.” Unless the context requires otherwise, references to “we,” “us,” “our,” “MRD,” or “the Company” are intended to mean the business and operations of Memorial Resource Development Corp. and its consolidated subsidiaries. | ||
References to: (i) “Memorial Production Partners,” “MEMP” and “the Partnership” refer to Memorial Production Partners LP individually and collectively with its subsidiaries, as the context requires; (ii) “MEMP GP” refer to Memorial Production Partners GP LLC, the general partner of the Partnership, which we own; (iii) “MRD Holdco” refer to MRD Holdco LLC, a holding company controlled by the Funds (defined below) that, together as part of a group, owns a majority of our common stock; (iv) “MRD LLC” refer to Memorial Resource Development LLC, which historically owned our predecessor’s business and was merged into MRD Operating LLC (“MRD Operating”), our 100% owned subsidiary, subsequent to our initial public offering; (v) “WildHorse Resources” refer to WildHorse Resources, LLC, which owned our interest in the Terryville Complex and merged into MRD Operating in February 2015; (vi) “our predecessor” refer collectively to MRD LLC and its former consolidated subsidiaries, consisting of Classic Hydrocarbons Holdings, L.P., Classic Hydrocarbons GP Co., L.L.C., Black Diamond Minerals, LLC, Beta Operating Company, LLC, MEMP GP, BlueStone Natural Resources Holdings, LLC (“BlueStone”), MRD Operating, WildHorse Resources, Tanos Energy LLC and each of their respective subsidiaries, including MEMP and its subsidiaries; (vii) “the Funds” refer collectively to Natural Gas Partners VIII, L.P., Natural Gas Partners IX, L.P. and NGP IX Offshore Holdings, L.P., which collectively control MRD Holdco; and (viii) “NGP” refer to Natural Gas Partners, a family of private equity investment funds organized to make direct equity investments in the energy industry, including the Funds. | ||
Previous Owners | ||
References to “the previous owners” for accounting and financial reporting purposes refer to the net profits interest that WildHorse Resources purchased from NGP Income Co-Investment Fund II, L.P. (“NGPCIF”) in February 2014 (“NGPCIF NPI”). NGPCIF is controlled by NGP. Upon the completion of certain acquisitions in 2010, WildHorse Resources sold a net profits interest in these properties to NGPCIF. Since WildHorse Resources sold the net profits interest, the historical results are accounted for as a working interest for all periods. | ||
Our unaudited financial statements reported herein include the financial position and results attributable to NGPCIF NPI. | ||
Basis of Presentation | ||
The financial statements reported herein include the financial position and results attributable to both our predecessor and the previous owners on a combined basis for periods prior to our initial public offering. For periods after the completion of our public offering, our consolidated financial statements include our accounts and those of our subsidiaries in which we have a controlling interest. Due to our control of MEMP through our ownership of MEMP GP, we are required to consolidate MEMP for accounting and financial reporting purposes. MEMP is owned 99.9% by its limited partners and 0.1% by MEMP GP. | ||
Certain amounts in the prior year financial statements have been reclassified to conform to current presentation. Gathering, processing, and transportation costs were previously accounted for as revenue deductions and are now being presented as costs and expenses on our statements of operations on a separate line item. | ||
All material intercompany transactions and balances have been eliminated in preparation of our consolidated and combined financial statements. Our results of operations for the three months ended March 31, 2015 are not necessarily indicative of results expected for the full year. In our opinion, the accompanying unaudited condensed consolidated and combined financial statements include all adjustments of a normal recurring nature necessary for fair presentation. Although we believe the disclosures in these financial statements are adequate and make the information presented not misleading, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). | ||
We have two reportable business segments, both of which are engaged in the acquisition, exploration and development of oil and natural gas properties (See Note 14). Our reportable business segments are as follows: | ||
· | MRD—reflects the combined operations of the Company and its consolidating subsidiaries except for MEMP and its subsidiaries. | |
· | MEMP—reflects the combined operations of MEMP and its subsidiaries. | |
Segment financial information has been retrospectively revised for the acquisition by the MEMP Segment of certain assets from the MRD Segment in East Texas in February 2015 in exchange for approximately $78.0 million in cash and certain properties in North Louisiana (the “Property Swap”) for comparability purposes. Our equity statement reflects a $172.9 million equity transfer from stockholders’ equity to noncontrolling interest related to this transaction. This amount represents $250.8 million of net book value related to the assets transferred to MEMP allocated to its limited partners less $77.9 million of cash allocated to its limited partners. Amounts allocated to MEMP GP eliminate in consolidation. | ||
Use of Estimates | ||
The preparation of the accompanying unaudited condensed consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated and combined financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Significant estimates include, but are not limited to, oil and natural gas reserves; depreciation, depletion, and amortization of proved oil and natural gas properties; future cash flows from oil and natural gas properties; impairment of long-lived assets; fair value of derivatives; fair value of equity compensation; fair values of assets acquired and liabilities assumed in business combinations and asset retirement obligations. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies | |||||||
A discussion of our critical accounting policies and estimates is included in our 2014 Form 10-K. | ||||||||
Accrued liabilities | ||||||||
Current accrued liabilities consisted of the following at the dates indicated (in thousands): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Accrued capital expenditures | $ | 84,939 | $ | 80,350 | ||||
Accrued lease operating expense | 17,996 | 16,403 | ||||||
Accrued general and administrative expenses | 10,098 | 8,516 | ||||||
Accrued ad valorem and production taxes | 10,390 | 8,870 | ||||||
Accrued interest payable | 36,815 | 24,797 | ||||||
Accrued environmental | 1,309 | 2,092 | ||||||
Accrued current deferred income taxes | 51,937 | 51,929 | ||||||
Other miscellaneous, including operator advances | 4,185 | 6,043 | ||||||
$ | 217,669 | $ | 199,000 | |||||
Income Tax | ||||||||
Our predecessor was organized as a pass-through entity for federal income tax purposes and was not subject to federal income taxes prior to our initial public offering in June 2014; however, certain of its consolidating subsidiaries were subject to federal and certain state income taxes. We are organized as a taxable C corporation and subject to federal and certain state income taxes. We are also subject to the Texas margin tax and certain aspects of the tax make it similar to an income tax. The net income (loss) attributable to noncontrolling interest is related to MEMP, which is a pass-through entity for federal income tax purposes. As discussed in Note 12, the compensation expense associated with the incentive units of MRD Holdco creates a nondeductible permanent difference for income tax purposes. We reported no liability for unrecognized tax benefits as of March 31, 2015 and expect no significant change to the unrecognized tax benefits in the next twelve months. | ||||||||
Our effective tax rate is negative 67.5% for the three months ended March 31, 2015, which differs from the statutory federal income tax rate of 35% primarily due to the following recurring items: | ||||||||
· | 84.0% reduction to the effective tax rate related to pass-through entities; | |||||||
· | 10.6% reduction to the effective tax rate related to non-deductible incentive compensation; and | |||||||
· | 8.1% reduction to the effective tax rate related to state income tax provision, net of federal benefit. | |||||||
We had a net noncurrent deferred income tax liability of $95.0 million at December 31, 2014, of which $29.2 million was attributable to certain oil and gas properties in East Texas that MEMP acquired from us in February 2015 as noted above. A deferred income tax benefit of $1.2 million associated with these oil and gas properties was recorded during February 2015. As such, a net deferred income tax liability of $28.0 million has been reduced through additional paid capital in our equity statement. | ||||||||
New Accounting Pronouncements | ||||||||
Presentation of Debt Issuance Cost. In April 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The guidance is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect the impact of adopting this guidance to be material to the Company's financial statements and related disclosures. | ||||||||
Amendments to Consolidation Analysis. In February 2015, the FASB issued an accounting standards update to improve consolidation guidance for certain types of legal entities. The guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships, and provides a scope exception from consolidation guidance for certain money market funds. These provisions are effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods, with early adoption permitted. These provisions may also be adopted using either a full retrospective or a modified retrospective approach. Although the Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and footnote disclosures, we expect that MEMP will become a VIE. We will either: (i) continue to consolidate MEMP and become subject to the VIE primary beneficiary disclosure requirements or (ii) no longer consolidate MEMP under the revised VIE consolidation requirements and provide disclosures that apply to variable interest holders that do not consolidate a VIE. The deconsolidation of MEMP would have a material impact on our consolidated financial statements and related disclosures. | ||||||||
Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations and cash flows. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Business Combinations [Abstract] | |||||||
Acquisitions and Divestitures | Note 3. Acquisitions and Divestitures | ||||||
Acquisition-related costs are included in general and administrative expenses in the accompanying statements of operations for the periods indicated below (in thousands): | |||||||
For the Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
$ | 2,580 | $ | 2,462 | ||||
2015 Divestitures | |||||||
Subsequent event. On April 17, 2015, MRD sold certain oil and natural gas properties to a third party in Colorado and Wyoming for approximately $13.5 million (the “Rockies Divestiture”). | |||||||
2014 Acquisitions | |||||||
On March 25, 2014, MEMP closed a transaction to acquire certain oil and natural gas producing properties from a third party in the Eagle Ford (the “Eagle Ford Acquisition”). In addition, MEMP acquired a 30% interest in the seller’s Eagle Ford leasehold. | |||||||
In July 2014, MEMP closed a third-party acquisition that was deemed significant to our consolidated financial statements. The following unaudited pro forma combined results of operations are provided for the three months ended March 31, 2014 as though this third-party acquisition had been completed on January 1, 2013. The unaudited pro forma financial information was derived from the historical combined statements of operations of our predecessor and previous owners and adjusted to include: (i) the revenues and direct operating expenses associated with oil and gas properties acquired, (ii) depletion expense applied to the adjusted basis of the properties acquired and (iii) interest expense on additional borrowings necessary to finance the acquisition. The unaudited pro forma financial information does not purport to be indicative of results of operations that would have occurred had the transaction occurred on the basis assumed above, nor is such information indicative of expected future results of operations. | |||||||
For the Three Months Ended | |||||||
March 31, | |||||||
2014 | |||||||
(In thousands) | |||||||
Revenues | $ | 252,019 | |||||
Net income (loss) | (14,817 | ) | |||||
Fair_Value_Measurements_of_Fin
Fair Value Measurements of Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements of Financial Instruments | Note 4. Fair Value Measurements of Financial Instruments | |||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value estimates are based on either (i) actual market data or (ii) assumptions that other market participants would use in pricing an asset or liability, including estimates of risk. A three-tier hierarchy has been established that classifies fair value amounts recognized or disclosed in the financial statements. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). All of the derivative instruments reflected on the accompanying balance sheets were considered Level 2. | ||||||||||||||||
The carrying values of accounts receivables, accounts payables (including accrued liabilities) and amounts outstanding under long-term debt agreements with variable rates included in the accompanying balance sheets approximated fair value at March 31, 2015 and December 31, 2014. The fair value estimates are based upon observable market data and are classified within Level 2 of the fair value hierarchy. These assets and liabilities are not presented in the following tables. See Note 8 for the estimated fair value of our outstanding fixed-rate debt. | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||
The fair market values of the derivative financial instruments reflected on the balance sheets as of March 31, 2015 and December 31, 2014 were based on estimated forward commodity prices (including nonperformance risk) and forward interest rate yield curves. Nonperformance risk is the risk that the obligation related to the derivative instrument will not be fulfilled. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement in its entirety. The significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. | ||||||||||||||||
The following table presents the gross derivative assets and liabilities that are measured at fair value on a recurring basis at March 31, 2015 and December 31, 2014 for each of the fair value hierarchy levels: | ||||||||||||||||
Fair Value Measurements at March 31, 2015 Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active | Observable | Unobservable | ||||||||||||||
Market | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity derivatives | $ | — | $ | 1,022,706 | $ | — | $ | 1,022,706 | ||||||||
Interest rate derivatives | — | 10 | — | 10 | ||||||||||||
Total assets | $ | — | $ | 1,022,716 | $ | — | $ | 1,022,716 | ||||||||
Liabilities: | ||||||||||||||||
Commodity derivatives | $ | — | $ | 87,809 | $ | — | $ | 87,809 | ||||||||
Interest rate derivatives | — | 3,549 | — | 3,549 | ||||||||||||
Total liabilities | $ | — | $ | 91,358 | $ | — | $ | 91,358 | ||||||||
Fair Value Measurements at December 31, 2014 Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active | Observable | Unobservable | ||||||||||||||
Market | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity derivatives | $ | — | $ | 845,759 | $ | — | $ | 845,759 | ||||||||
Interest rate derivatives | — | 1,305 | — | 1,305 | ||||||||||||
Total assets | $ | — | $ | 847,064 | $ | — | $ | 847,064 | ||||||||
Liabilities: | ||||||||||||||||
Commodity derivatives | $ | — | $ | 71,639 | $ | — | $ | 71,639 | ||||||||
Interest rate derivatives | — | 3,289 | — | 3,289 | ||||||||||||
Total liabilities | $ | — | $ | 74,928 | $ | — | $ | 74,928 | ||||||||
See Note 5 for additional information regarding our derivative instruments. | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||
Certain assets and liabilities are reported at fair value on a nonrecurring basis as reflected on the balance sheets. The following methods and assumptions are used to estimate the fair values: | ||||||||||||||||
· | The fair value of asset retirement obligations (“AROs”) is based on discounted cash flow projections using numerous estimates, assumptions, and judgments regarding factors such as the existence of a legal obligation for an ARO; amounts and timing of settlements; the credit-adjusted risk-free rate; and inflation rates. See Note 6 for a summary of changes in AROs. | |||||||||||||||
· | If sufficient market data is not available, the determination of the fair values of proved and unproved properties acquired in transactions accounted for as business combinations are prepared by utilizing estimates of discounted cash flow projections. The factors to determine fair value include, but are not limited to, estimates of: (i) economic reserves; (ii) future operating and development costs; (iii) future commodity prices; and (iv) a market-based weighted average cost of capital. | |||||||||||||||
· | Proved oil and natural gas properties are reviewed for impairment when events and circumstances indicate a possible decline in the recoverability of the carrying value of such properties. The factors used to determine fair value include, but are not limited to, estimates of proved reserves, future commodity prices, the timing of future production and capital expenditures and a discount rate commensurate with the risk reflective of the lives remaining for the respective oil and gas properties. | |||||||||||||||
· | During the period ended March 31, 2015, MEMP recognized $251.3 million of impairments primarily related to certain properties located in East Texas, Wyoming and Colorado. The estimated future cash flows expected from these properties were compared to their carrying values and determined to be unrecoverable due to declining commodity prices. The carrying value of these properties after the $251.3 million impairment was approximately $157.6 million. MEMP did not record any impairments for the three months ended March 31, 2014. | |||||||||||||||
Risk_Management_and_Derivative
Risk Management and Derivative Instruments | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Risk Management and Derivative Instruments | Note 5. Risk Management and Derivative Instruments | |||||||||||||||||||
Derivative instruments are utilized to manage exposure to commodity price and interest rate fluctuations and achieve a more predictable cash flow in connection with natural gas and oil sales from production and borrowing related activities. These instruments limit exposure to declines in prices or increases in interest rates, but also limit the benefits that would be realized if prices increase or interest rates decrease. | ||||||||||||||||||||
Certain inherent business risks are associated with commodity and interest derivative contracts, including market risk and credit risk. Market risk is the risk that the price of natural gas or oil will change, either favorably or unfavorably, in response to changing market conditions. Credit risk is the risk of loss from nonperformance by the counterparty to a contract. It is our policy to enter into derivative contracts, including interest rate swaps, only with creditworthy counterparties, which generally are financial institutions, deemed by management as competent and competitive market makers. Some of the lenders, or certain of their affiliates, under our credit agreements are counterparties to our derivative contracts. While collateral is generally not required to be posted by counterparties, credit risk associated with derivative instruments is minimized by limiting exposure to any single counterparty and entering into derivative instruments only with counterparties that are large financial institutions, which management believes present minimal credit risk. Additionally, master netting agreements are used to mitigate risk of loss due to default with counterparties on derivative instruments. We have also entered into the International Swaps and Derivatives Association Master Agreements (“ISDA Agreements”) with each of our counterparties. The terms of the ISDA Agreements provide us and each of our counterparties with rights of set-off upon the occurrence of defined acts of default by either us or our counterparty to a derivative, whereby the party not in default may set-off all liabilities owed to the defaulting party against all net derivative asset receivables from the defaulting party. | ||||||||||||||||||||
At March 31, 2015, MEMP had net derivative assets of $601.0 million. After taking into effect netting arrangements, MEMP had counterparty exposure of $328.4 million related to its derivative instruments of which $113.4 million was with a single counterparty. Had all counterparties failed completely to perform according to the terms of their existing contracts, MEMP would have the right to offset $272.6 million against amounts outstanding under its revolving credit facility at March 31, 2015. At March 31, 2015, MRD had net derivative assets of $330.5 million. After taking into effect netting arrangements, MRD had counterparty exposure of $248.7 million related to derivative instruments of which $66.6 million was with a single counterparty. Had all counterparties failed completely to perform according to the terms of their existing contracts, MRD would have the right to offset $81.8 million against amounts outstanding under its revolving credit facility at March 31, 2015. See Note 8 for additional information regarding our revolving credit facilities. | ||||||||||||||||||||
Commodity Derivatives | ||||||||||||||||||||
We may use a combination of commodity derivatives (e.g., floating-for-fixed swaps, put options, costless collars and basis swaps) to manage exposure to commodity price volatility. We recognize all derivative instruments at fair value; however, certain of our derivative instruments have a deferred premium. The deferred premium is factored into the fair value measurement and the Company agrees to defer the premium paid or received until the time of settlement. Cash settlements received on settled derivative positions during the three months ended March 31, 2015 is net of deferred premiums of $1.8 million. | ||||||||||||||||||||
In February 2015, MEMP restructured a portion of its commodity derivative portfolio by effectively terminating “in-the-money” crude oil derivatives settling in 2015 through 2017 and entering into NGL derivatives with the same tenor. Cash settlement receipts of approximately $27.1 million from the termination of the crude oil derivatives were applied as premiums for the new NGL derivatives. | ||||||||||||||||||||
We enter into natural gas derivative contracts that are indexed to NYMEX-Henry Hub and regional indices such as NGPL TXOK, TETCO STX, TGT Z1, and Houston Ship Channel in proximity to our areas of production. We also enter into oil derivative contracts indexed to a variety of locations such as NYMEX-WTI, Inter-Continental Exchange (“ICE”) Brent, California Midway-Sunset and other regional locations. Our NGL derivative contracts are primarily indexed to OPIS Mont Belvieu. | ||||||||||||||||||||
At March 31, 2015, the MRD Segment had the following open commodity positions: | ||||||||||||||||||||
Remaining | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | |||||||||||||||||
Natural Gas Derivative Contracts: | ||||||||||||||||||||
Fixed price swap contracts: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 3,600,000 | 2,570,000 | 1,770,000 | 4,600,000 | ||||||||||||||||
Weighted-average fixed price | $ | 4.15 | $ | 4.09 | $ | 4.24 | $ | 4.06 | ||||||||||||
Collar contracts: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 130,000 | 1,100,000 | 1,050,000 | — | ||||||||||||||||
Weighted-average floor price | $ | 4 | $ | 4 | $ | 4 | $ | — | ||||||||||||
Weighted-average ceiling price | $ | 4.64 | $ | 4.71 | $ | 5.06 | $ | — | ||||||||||||
Purchased put option contracts: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 3,366,667 | 4,100,000 | 3,450,000 | 2,850,000 | ||||||||||||||||
Weighted-average fixed price | $ | 3.75 | $ | 3.75 | $ | 3.75 | $ | 3.75 | ||||||||||||
Weighted-average deferred premium paid | $ | (0.33 | ) | $ | (0.36 | ) | $ | (0.35 | ) | $ | (0.35 | ) | ||||||||
Written call option contracts (1): | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 2,625,000 | — | — | — | ||||||||||||||||
Weighted-average sold strike price | $ | 3.75 | $ | — | $ | — | $ | — | ||||||||||||
Weighted-average deferred premium received | $ | 0.08 | $ | — | $ | — | $ | — | ||||||||||||
TGT Z1 basis swaps: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 3,480,000 | 1,120,000 | 200,000 | — | ||||||||||||||||
Spread - Henry Hub | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.08 | ) | $ | — | |||||||||
Crude Oil Derivative Contracts: | ||||||||||||||||||||
Fixed price swap contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 45,000 | 8,500 | 28,000 | 31,625 | ||||||||||||||||
Weighted-average fixed price | $ | 91.67 | $ | 84.8 | $ | 84.7 | $ | 84.5 | ||||||||||||
Collar contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 2,000 | 27,000 | — | — | ||||||||||||||||
Weighted-average floor price | $ | 85 | $ | 80 | $ | — | $ | — | ||||||||||||
Weighted-average ceiling price | $ | 101.35 | $ | 99.7 | $ | — | $ | — | ||||||||||||
Purchased put option contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 30,333 | — | — | — | ||||||||||||||||
Weighted-average fixed price | $ | 85 | $ | — | $ | — | $ | — | ||||||||||||
Weighted-average deferred premium paid | $ | (3.80 | ) | $ | — | $ | — | $ | — | |||||||||||
Written call option contracts (1): | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 22,750 | — | — | — | ||||||||||||||||
Weighted-average sold strike price | $ | 85 | $ | — | $ | — | $ | — | ||||||||||||
Weighted-average deferred premium received | $ | 0.48 | $ | — | $ | — | $ | — | ||||||||||||
NGL Derivative Contracts: | ||||||||||||||||||||
Fixed price swap contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 155,000 | 185,658 | — | — | ||||||||||||||||
Weighted-average fixed price | $ | 41.58 | $ | 34.06 | $ | — | $ | — | ||||||||||||
-1 | These transactions were entered into for the purpose of creating a ceiling on our put options, which effectively converted the applicable puts into swaps. | |||||||||||||||||||
At March 31, 2015, the MEMP Segment had the following open commodity positions: | ||||||||||||||||||||
Remaining | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Natural Gas Derivative Contracts: | ||||||||||||||||||||
Fixed price swap contracts: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 3,061,181 | 3,292,442 | 3,050,067 | 2,760,000 | 2,514,583 | |||||||||||||||
Weighted-average fixed price | $ | 4.16 | $ | 4.22 | $ | 4.14 | $ | 4.28 | $ | 4.43 | ||||||||||
Collar contracts: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 350,000 | — | — | — | — | |||||||||||||||
Weighted-average floor price | $ | 4.62 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Weighted-average ceiling price | $ | 5.8 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Call spreads (1): | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 80,000 | — | — | — | — | |||||||||||||||
Weighted-average sold strike price | $ | 5.25 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Weighted-average bought strike price | $ | 6.75 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Basis swaps: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 3,390,000 | 3,108,333 | 415,000 | 115,000 | — | |||||||||||||||
Spread | $ | (0.12 | ) | $ | (0.05 | ) | $ | — | $ | 0.15 | $ | — | ||||||||
Crude Oil Derivative Contracts: | ||||||||||||||||||||
Fixed price swap contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 273,864 | 279,813 | 301,600 | 312,000 | 160,000 | |||||||||||||||
Weighted-average fixed price | $ | 91.34 | $ | 86.87 | $ | 84.7 | $ | 83.74 | $ | 85.52 | ||||||||||
Collar contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 5,000 | — | — | — | — | |||||||||||||||
Weighted-average floor price | $ | 80 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Weighted-average ceiling price | $ | 94 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Basis swaps: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 97,333 | 95,000 | — | — | — | |||||||||||||||
Spread | $ | (7.07 | ) | $ | (9.56 | ) | $ | — | $ | — | $ | — | ||||||||
NGL Derivative Contracts: | ||||||||||||||||||||
Fixed price swap contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 211,867 | 158,600 | 43,300 | — | — | |||||||||||||||
Weighted-average fixed price | $ | 42.3 | $ | 40.36 | $ | 37.55 | $ | — | $ | — | ||||||||||
-1 | These transactions were entered into for the purpose of eliminating the ceiling portion of certain collar arrangements, which effectively converted the applicable collars into swaps. | |||||||||||||||||||
The MEMP Segment basis swaps included in the table above is presented on a disaggregated basis below: | ||||||||||||||||||||
Remaining | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | |||||||||||||||||
Natural Gas Derivative Contracts: | ||||||||||||||||||||
NGPL TexOk basis swaps: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 2,730,000 | 2,703,333 | 300,000 | — | ||||||||||||||||
Spread - Henry Hub | $ | (0.12 | ) | $ | (0.07 | ) | $ | (0.05 | ) | $ | — | |||||||||
HSC basis swaps: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 150,000 | 135,000 | 115,000 | 115,000 | ||||||||||||||||
Spread - Henry Hub | $ | (0.08 | ) | $ | 0.07 | $ | 0.14 | $ | 0.15 | |||||||||||
CIG basis swaps: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 210,000 | — | — | — | ||||||||||||||||
Spread - Henry Hub | $ | (0.25 | ) | $ | — | $ | — | $ | — | |||||||||||
TETCO STX basis swaps: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 300,000 | 270,000 | — | — | ||||||||||||||||
Spread - Henry Hub | $ | (0.09 | ) | $ | 0.06 | $ | — | $ | — | |||||||||||
Crude Oil Derivative Contracts: | ||||||||||||||||||||
Midway-Sunset basis swaps: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 57,333 | 55,000 | — | — | ||||||||||||||||
Spread - Brent | $ | (9.73 | ) | $ | (13.35 | ) | $ | — | $ | — | ||||||||||
Midland basis swaps: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 40,000 | 40,000 | — | — | ||||||||||||||||
Spread - WTI | $ | (3.25 | ) | $ | (4.34 | ) | $ | — | $ | — | ||||||||||
Interest Rate Swaps | ||||||||||||||||||||
Periodically, we enter into interest rate swaps to mitigate exposure to market rate fluctuations by converting variable interest rates such as those in our credit agreements to fixed interest rates. From time to time we enter into offsetting positions to avoid being economically over-hedged. At March 31, 2015, we had the following interest rate swap open positions: | ||||||||||||||||||||
Remaining | ||||||||||||||||||||
Credit Facility | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
MEMP: | ||||||||||||||||||||
Average Monthly Notional (in thousands) | $ | 386,111 | $ | 400,000 | $ | 400,000 | $ | 100,000 | ||||||||||||
Weighted-average fixed rate | 1.247 | % | 0.943 | % | 1.612 | % | 1.946 | % | ||||||||||||
Floating rate | 1 Month LIBOR | 1 Month LIBOR | 1 Month LIBOR | 1 Month LIBOR | ||||||||||||||||
Balance Sheet Presentation | ||||||||||||||||||||
The following table summarizes both: (i) the gross fair value of derivative instruments by the appropriate balance sheet classification even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the balance sheet and (ii) the net recorded fair value as reflected on the balance sheet at March 31, 2015 and December 31, 2014. There was no cash collateral received or pledged associated with our derivative instruments since most of the counterparties, or certain of their affiliates, to our derivative contracts are lenders under our collective credit agreements. | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||||||
Type | Balance Sheet Location | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Commodity contracts | Short-term derivative instruments | $ | 398,708 | $ | 378,908 | $ | 41,954 | $ | 38,852 | |||||||||||
Interest rate swaps | Short-term derivative instruments | — | — | 2,994 | 3,289 | |||||||||||||||
Gross fair value | 398,708 | 378,908 | 44,948 | 42,141 | ||||||||||||||||
Netting arrangements | Short-term derivative instruments | (41,648 | ) | (38,852 | ) | (41,648 | ) | (38,852 | ) | |||||||||||
Net recorded fair value | Short-term derivative instruments | $ | 357,060 | $ | 340,056 | $ | 3,300 | $ | 3,289 | |||||||||||
Commodity contracts | Long-term derivative instruments | $ | 623,998 | $ | 466,851 | $ | 45,855 | $ | 32,787 | |||||||||||
Interest rate swaps | Long-term derivative instruments | 10 | 1,305 | 555 | — | |||||||||||||||
Gross fair value | 624,008 | 468,156 | 46,410 | 32,787 | ||||||||||||||||
Netting arrangements | Long-term derivative instruments | (45,855 | ) | (32,787 | ) | (45,855 | ) | (32,787 | ) | |||||||||||
Net recorded fair value | Long-term derivative instruments | $ | 578,153 | $ | 435,369 | $ | 555 | $ | — | |||||||||||
(Gains) Losses on Derivatives | ||||||||||||||||||||
All gains and losses, including changes in the derivative instruments’ fair values, have been recorded in the accompanying statements of operations since derivative instruments are not designated as hedging instruments for accounting and financial reporting purposes. The following table details the gains and losses related to derivative instruments for the three months ended March 31, 2015 and 2014 (in thousands): | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Statements of | March 31, | |||||||||||||||||||
Operations Location | 2015 | 2014 | ||||||||||||||||||
Commodity derivative contracts | (Gain) loss on commodity derivatives | $ | (253,649 | ) | $ | 59,482 | ||||||||||||||
Interest rate derivatives | Interest expense, net | 2,441 | 511 | |||||||||||||||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ||||
Asset Retirement Obligations | Note 6. Asset Retirement Obligations | |||
Asset retirement obligations primarily relate to our portion of future plugging and abandonment costs for wells and related facilities. The following table presents the changes in the asset retirement obligations for the three months ended March 31, 2015 (in thousands): | ||||
Asset retirement obligations at beginning of period | $ | 122,531 | ||
Liabilities added from acquisitions or drilling | 39 | |||
Revisions | 149 | |||
Accretion expense | 1,757 | |||
Asset retirement obligations at end of period | $ | 124,476 | ||
Restricted_Investments
Restricted Investments | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Schedule Of Investments [Abstract] | ||||||||
Restricted Investments | Note 7. Restricted Investments | |||||||
Various restricted investment accounts fund certain long-term contractual and regulatory asset retirement obligations and collateralize certain regulatory bonds associated with offshore Southern California oil and gas properties owned by MEMP. The components of the restricted investment balance consisted of the following at the dates indicated: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
BOEM platform abandonment (See Note 15) | $ | 71,263 | $ | 69,954 | ||||
BOEM lease bonds | 794 | 794 | ||||||
SPBPC Collateral: | ||||||||
Contractual pipeline and surface facilities abandonment | 2,818 | 2,701 | ||||||
California State Lands Commission pipeline right-of-way bond | 3,005 | 3,005 | ||||||
City of Long Beach pipeline facility permit | 500 | 500 | ||||||
Federal pipeline right-of-way bond | 307 | 307 | ||||||
Port of Long Beach pipeline license | 100 | 100 | ||||||
Restricted investments | $ | 78,787 | $ | 77,361 | ||||
Long_Term_Debt
Long Term Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long Term Debt | Note 8. Long Term Debt | |||||||
The following table presents our consolidated debt obligations at the dates indicated: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
MRD Segment: | ||||||||
MRD $2.0 billion revolving credit facility, variable-rate, due June 2019 | $ | 144,000 | $ | 183,000 | ||||
5.875% senior unsecured notes, due July 2022 (1) | 600,000 | 600,000 | ||||||
Subtotal | 744,000 | 783,000 | ||||||
MEMP Segment: | ||||||||
MEMP $2.0 billion revolving credit facility, variable-rate, due March 2018 | 573,000 | 412,000 | ||||||
7.625% senior unsecured notes, due May 2021 ("2021 Senior Notes") (2) | 700,000 | 700,000 | ||||||
6.875% senior unsecured notes, due August 2022 ("2022 Senior Notes") (3) | 496,990 | 500,000 | ||||||
Unamortized discounts | (15,945 | ) | (16,587 | ) | ||||
Subtotal | 1,754,045 | 1,595,413 | ||||||
Total long-term debt | $ | 2,498,045 | $ | 2,378,413 | ||||
-1 | The estimated fair value of this fixed-rate debt was $564.0 million and $534.0 million at March 31, 2015 and December 31, 2014, respectively. The estimated fair value is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. | |||||||
-2 | The estimated fair value of this fixed-rate debt was $640.5 million and $563.5 million at March 31, 2015 and December 31, 2014, respectively. The estimated fair value is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. | |||||||
-3 | The estimated fair value of this fixed-rate debt was $437.4 million and $380.0 million at March 31, 2015 and December 31, 2014, respectively. The estimated fair value is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. | |||||||
Borrowing Base | ||||||||
Credit facilities tied to borrowing bases are common throughout the oil and gas industry. Each of the revolving credit facilities’ borrowing base is subject to redetermination, on at least a semi-annual basis, primarily based on estimated proved reserves. The borrowing base for each credit facility was the following at the date indicated (in thousands): | ||||||||
March 31, | ||||||||
2015 | ||||||||
MRD Segment: | ||||||||
MRD $2.0 billion revolving credit facility, variable-rate, due June 2019 | $ | 725,000 | ||||||
MEMP Segment: | ||||||||
MEMP $2.0 billion revolving credit facility, variable-rate, due March 2018 | 1,300,000 | |||||||
Subsequent event. On April 13, 2015, MRD’s revolving credit facility borrowing base was re-affirmed at $725.0 million. | ||||||||
Weighted-Average Interest Rates | ||||||||
The following table presents the weighted-average interest rates paid on our consolidated variable-rate debt obligations for the periods presented: | ||||||||
For the Three Months Ended | ||||||||
Credit Facility | March 31, | |||||||
2015 | 2014 | |||||||
MRD Segment: | ||||||||
MRD revolving credit facility | 1.87 | % | n/a | |||||
WildHorse Resources revolver terminated June 2014 | n/a | 3.97 | % | |||||
WildHorse Resources second lien terminated June 2014 | n/a | 6.44 | % | |||||
MEMP Segment: | ||||||||
MEMP revolving credit facility | 1.9 | % | 1.66 | % | ||||
Unamortized Deferred Financing Costs | ||||||||
Unamortized deferred financing costs associated with our consolidated debt obligations were as follows at the dates indicated: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
MRD Segment: | ||||||||
MRD revolving credit facility | $ | 4,060 | $ | 4,285 | ||||
MRD senior notes | 12,041 | 12,455 | ||||||
MEMP Segment: | ||||||||
MEMP revolving credit facility | 5,395 | 6,468 | ||||||
2021 Senior Notes | 12,779 | 13,308 | ||||||
2022 Senior Notes | 7,656 | 7,958 | ||||||
$ | 41,931 | $ | 44,474 | |||||
Stockholders_Equity_and_Noncon
Stockholders' Equity and Noncontrolling Interests | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Equity [Abstract] | ||||
Stockholders' Equity and Noncontrolling Interests | Note 9. Stockholders’ Equity and Noncontrolling Interests | |||
Common Stock | ||||
The Company's authorized capital stock includes 600,000,000 shares of common stock, $0.01 par value per share. The following is a summary of the changes in our common shares issued for the three months ended March 31, 2015: | ||||
Balance December 31, 2014 | 193,435,414 | |||
Shares of common stock repurchased | (2,764,887 | ) | ||
Restricted common shares issued (Note 11) | 115,302 | |||
Restricted common shares forfeited | (9,211 | ) | ||
Balance March 31, 2015 | 190,776,618 | |||
See Note 11 for additional information regarding restricted common shares. Restricted shares of common stock are considered issued and outstanding on the grant date of the restricted stock award. | ||||
Share Repurchase Program | ||||
MRD repurchased 2,764,887 shares of common stock under the December 2014 repurchase program for an aggregate price of $47.8 million through March 16, 2015, which exhausted the December 2014 repurchase program. MRD has retired all of the shares of common stock repurchased and the shares of common stock are no longer issued or outstanding. | ||||
Subsequent event. In April 2015, the board of directors (“Board”) of the Company authorized the repurchase of up to $50.0 million of the Company’s outstanding common stock from time to time on the open market, through block trades or otherwise. The Company is not obligated to repurchase any dollar amount or specific number of shares of its common stock under the program, which may be suspended or discontinued at any time. The amount, timing and price of purchases will depend on market conditions and other factors. | ||||
Noncontrolling Interests | ||||
Noncontrolling interests is the portion of equity ownership in the Company’s consolidated subsidiaries not attributable to the Company and primarily consists of the equity interests held by: (i) the limited partners of MEMP and (ii) a third party investor in the San Pedro Bay Pipeline Company. Prior to our initial public offering, certain current or former key employees of certain of MRD LLC’s subsidiaries also held equity interests in those subsidiaries. | ||||
Distributions paid to the limited partners of MEMP primarily represent the quarterly cash distributions paid to MEMP’s unitholders, excluding those paid to MRD LLC prior to our initial public offering. Contributions received from limited partners of MEMP primarily represent net cash proceeds received from common unit offerings. | ||||
During the three months ended March 31, 2015, MEMP repurchased 1,909,583 common units under its repurchase program for an aggregate price of $28.4 million. MEMP has retired all common units repurchased and those common units are no longer issued or outstanding. |
Earnings_per_Share
Earnings per Share | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Earnings Per Share [Abstract] | ||||
Earnings per Share | Note 10. Earnings per Share | |||
The following sets forth the calculation of earnings (loss) per share, or EPS, for the periods indicated (in thousands, except per share amounts): | ||||
For the Three | ||||
Months Ended | ||||
March 31, | ||||
2015 | ||||
Numerator: | ||||
Net income (loss) available to common stockholders | $ | 45,615 | ||
Denominator: | ||||
Weighted average common shares outstanding | 190,705 | |||
Basic EPS | $ | 0.24 | ||
Diluted EPS (1) | $ | 0.24 | ||
-1 | The Company determines the more dilutive of either the two-class method or the treasury stock method for diluted EPS. The two-class method was more dilutive for the period presented. Under the treasury stock method, 151,123 incremental shares were included in the diluted EPS computation. |
LongTerm_Incentive_Plans
Long-Term Incentive Plans | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||
Long-Term Incentive Plans | Note 11. Long-Term Incentive Plans | |||||||
MRD | ||||||||
The following table summarizes information regarding restricted common share awards granted under the Memorial Resource Development Corp. 2014 Long-Term Incentive Plan for the periods presented: | ||||||||
Number of Shares | Weighted-Average Grant Date Fair Value per Share (1) | |||||||
Restricted common shares outstanding at December 31, 2014 | 1,059,211 | $ | 19 | |||||
Granted (2) | 115,302 | $ | 18.05 | |||||
Forfeited | (9,211 | ) | $ | 19 | ||||
Restricted common shares outstanding at March 31, 2015 | 1,165,302 | $ | 18.91 | |||||
(1)Determined by dividing the aggregate grant date fair value of awards issued. | ||||||||
-2 | The aggregate grant date fair value of restricted common share awards issued in 2015 was $2.1 million based on a grant date market price of $18.05 per share. | |||||||
The following table summarizes the amount of recognized compensation expense associated with these awards that are reflected in the accompanying statements of operations for the periods presented (in thousands): | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
$ | 1,486 | n/a | ||||||
The unrecognized compensation cost associated with restricted common share awards was $17.7 million at March 31, 2015. We expect to recognize the unrecognized compensation cost for these awards over a weighted-average period of 3.13 years. | ||||||||
MEMP | ||||||||
The following table summarizes information regarding restricted common unit awards granted under the Memorial Production Partners GP LLC Long-Term Incentive Plan for the periods presented: | ||||||||
Number of Units | Weighted-Average Grant Date Fair Value per Unit (1) | |||||||
Restricted common units outstanding at December 31, 2014 | 1,093,520 | $ | 20.93 | |||||
Granted (2) | 157,360 | $ | 15.45 | |||||
Forfeited | (12,467 | ) | $ | 20.73 | ||||
Vested | (78,307 | ) | $ | 19.16 | ||||
Restricted common units outstanding at March 31, 2015 | 1,160,106 | $ | 20.31 | |||||
-1 | Determined by dividing the aggregate grant date fair value of awards issued. | |||||||
-2 | The aggregate grant date fair value of restricted common unit awards issued in 2015 was $2.4 million based on a grant date market price of $15.45 per unit. | |||||||
The following table summarizes the amount of recognized compensation expense associated with these awards that are reflected in the accompanying statements of operations for the periods presented (in thousands): | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
$ | 2,341 | $ | 1,295 | |||||
The unrecognized compensation cost associated with restricted common unit awards was $16.3 million at March 31, 2015. We expect to recognize the unrecognized compensation cost for these awards over a weighted-average period of 1.99 years. Since the restricted common units are participating securities, distributions received by the restricted common unitholders are generally included in distributions to noncontrolling interests as presented on our unaudited condensed statements of consolidated and combined cash flows. | ||||||||
Incentive_Units
Incentive Units | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation Related Costs [Abstract] | ||||||||
Incentive Units | Note 12. Incentive Units | |||||||
MRD Holdco | ||||||||
MRD LLC incentive units were originally granted in June 2012 and February 2013. In connection with our initial public offering and the related restructuring transactions, these incentive units were exchanged for substantially identical units in MRD Holdco, and such incentive units entitle holders thereof to portions of future distributions by MRD Holdco. MRD Holdco’s governing documents authorize the issuance of 1,000 incentive units, of which 930 incentive units were granted in an exchange for the cancelled MRD LLC awards (the “Exchanged Incentive Units”). Subsequent to our initial public offering, MRD Holdco granted the remaining 70 incentive units to certain key employees (the “Subsequent Incentive Units”). | ||||||||
We recognized $10.2 million of compensation expense during the three months ended March 31, 2015, offset by a deemed capital contribution from MRD Holdco and the unrecognized compensation expense of approximately $95.5 million as of March 31, 2015 will be recognized over the remaining expected service period of 2.17 years. | ||||||||
The fair value of the Exchanged and Subsequent Incentive Units will be remeasured on a quarterly basis until all payments have been made. The settlement obligation rests with MRD Holdco. Accordingly, no payments will ever be made by us related to these incentive units; however, non-cash compensation expense will be allocated to us in future periods offset by deemed capital contributions. As such, these awards are not dilutive to our stockholders. | ||||||||
The fair value of the incentive units was estimated using a Monte Carlo simulation valuation model with the following assumptions: | ||||||||
Exchanged Incentive Units | Subsequent Incentive Units | |||||||
Valuation date | 3/31/15 | 3/31/15 | ||||||
Dividend yield | 0 | % | 0 | % | ||||
Expected volatility | 27.9 | % | 27.9 | % | ||||
Risk-free rate | 0.61 | % | 0.61 | % | ||||
Expected life (years) | 2.17 | 2.17 | ||||||
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Related Party Transactions [Abstract] | ||||
Related Party Transactions | Note 13. Related Party Transactions | |||
Amounts due to (due from) MRD Holdco and certain affiliates of NGP at March 31, 2015 and December 31, 2014 are presented as “Accounts receivable – affiliates” and “Accounts payable – affiliates” in the accompanying balance sheets. | ||||
NGP Affiliated Companies | ||||
During the three months ended March 31, 2015, MRD paid approximately $0.6 million to Cretic Energy Services, LLC, a NGP affiliated company, for services related to our drilling and completion activities. | ||||
NGPCIF NPI Acquisition | ||||
WildHorse Resources purchased a net profits interest from NGPCIF on February 28, 2014 for a purchase price of $63.4 million (see Note 1). This acquisition was accounted for as a combination of entities under common control at historical cost in a manner similar to the pooling of interest method. WildHorse Resources recorded the following net assets (in thousands): | ||||
Accounts receivable | $ | 2,274 | ||
Oil and natural gas properties, net | 40,056 | |||
Accrued liabilities | (297 | ) | ||
Asset retirement obligations | (277 | ) | ||
Net assets | $ | 41,756 | ||
Due to common control considerations, the difference between the purchase price and the net assets acquired are reflected within equity as a deemed distribution to NGP affiliates. | ||||
Other Acquisitions or Dispositions | ||||
On March 10, 2014, BlueStone sold certain interests in oil and gas properties in McMullen, Webb, Zapata, and Hidalgo Counties located in South Texas to BlueStone Natural Resources II, LLC, an NGP controlled entity. Total cash consideration received by BlueStone was approximately $1.2 million, which exceeded the net book value of the properties sold by $0.5 million. Due to common control considerations, the $0.5 million was recognized in the equity statement as a contribution. | ||||
On March 28, 2014, our predecessor acquired certain interests in oil and gas properties in Gonzales and Karnes Counties located in South Texas from a NGP affiliated company for $3.3 million. Due to common control considerations, this transaction was recognized in the equity statement. | ||||
Related Party Agreements | ||||
We and certain of our affiliates have entered into various documents and agreements. These agreements have been negotiated among affiliated parties and, consequently, are not the result of arm’s-length negotiations. | ||||
Registration Rights Agreement | ||||
In connection with the closing of our initial public offering, we entered into a registration rights agreement with MRD Holdco and former management members of WildHorse Resources, Jay Graham (“Graham”) and Anthony Bahr (“Bahr”). Pursuant to the registration rights agreement, we have agreed to register the sale of shares of our common stock under certain circumstances. | ||||
Voting Agreement | ||||
In connection with the closing of our initial public offering, we entered into a voting agreement with MRD Holdco, WHR Incentive LLC, a limited liability company beneficially owned by Messrs. Bahr and Graham, and certain former management members of WildHorse Resources, who contributed their ownership of WildHorse Resources to us in the restructuring transactions. Among other things, the voting agreement provides that those former management members of WildHorse Resources will vote all of their shares of our common stock as directed by MRD Holdco. | ||||
Services Agreement | ||||
In connection with the closing of our initial public offering, we entered into a services agreement with WildHorse Resources and WildHorse Resource Management Company, LLC (“WHR Management Company”), pursuant to which WHR Management Company agreed to provide operating and administrative services to us for twelve months relating to the Terryville Complex. In exchange for such services, we paid a monthly management fee to WHR Management Company of approximately $1.0 million excluding third party COPAS income credits. | ||||
Upon the closing of our initial public offering, WHR Management Company became a subsidiary of WildHorse Resources II, LLC, an affiliate of the Company (“WHR II”). NGP and certain former management members of WildHorse Resources own WHR II. | ||||
The services agreement was terminated effective March 1, 2015. | ||||
WildHorse Management Services Agreement | ||||
A discussion of the WildHorse and WHR II management services and related agreements is included in our 2014 Form 10-K. These agreements were terminated in connection with our initial public offering. | ||||
Gas Processing Agreement | ||||
Subsequent event. On April 14, 2015, we, through our wholly-owned subsidiary, MRD Operating, entered into an amended and restated gas processing agreement (“GPA”) with PennTex North Louisiana Operating, LLC (“PennTex Operating”), a wholly-owned subsidiary of PennTex North Louisiana, LLC (“PennTex”). WildHorse Resources, which owned our interest in the Terryville Complex and merged into MRD Operating in February 2015, initially entered into a gas processing agreement with PennTex in March 2014, prior to our initial public offering. PennTex is a joint venture among certain affiliates of NGP in which MRD Midstream LLC, a wholly-owned subsidiary of MRD Holdco, owns a minority interest. Once PennTex Operating’s first processing plant becomes operational, it will process natural gas produced from wells located on certain leases owned by us in the state of Louisiana. The GPA has a 15-year primary term, subject to one-year extensions at either party’s election. We will pay PennTex Operating a monthly volume processing fee, subject to annual inflation escalators, based on volumes of natural gas processed by PennTex Operating. Once the first plant is declared operational, we will be obligated to pay a minimum processing fee equal to approximately $18.3 million on an annual basis, subject to certain adjustments and conditions until the second processing plant is declared operational. Once the second plant is declared operational, we will be obligated to pay a minimum volume processing fee equal to approximately $55.0 million on an annual basis, subject to certain adjustments and conditions. | ||||
In addition, on April 14, 2015, we entered into (i) an amended and restated area of mutual interest and midstream exclusivity agreement (“AMI”) with PennTex NLA Holdings, LLC, which owns a majority interest in PennTex, MRD WHR LA Midstream LLC, an affiliate of MRD Holdco, and PennTex, (ii) a gas transportation agreement (“GTA”) with PennTex Operating, (iii) a gas gathering agreement (“GGA”) with PennTex Operating, and (iv) a transportation services agreement (“TSA” and, together with the GPA, AMI, GTA, and GGA, the “Midstream Agreements”) with PennTex Operating to provide gathering, residue gas and natural gas liquids transportation services to us in the state of Louisiana. The Midstream Agreements have a 15-year primary term, subject to one-year extensions at either party’s elections. | ||||
Under the GGA, once the first processing plant is declared operational, we will pay PennTex Operating a commodity usage charge equal to at least the minimum volume commitment (115,000 MMBtu per day) times $0.02 per MMBtu until PennTex Operating’s second processing plant is declared operational. Once the second processing plant is declared operational, we will pay PennTex Operating a commodity usage charge equal to at least an increased minimum volume commitment (345,000 MMBtu per day) times $0.02 MMBtu through November 30, 2019. The minimum volume commitment will increase to 460,000 MMBtu on July 1, 2016 and may further increase subject to the terms of the GGA. Prior to December 1, 2019, PennTex Operating is also entitled to a payback demand fee from us equal to the monthly demand quantity (460,000 MMBtu per day) times a $0.03 MMBtu through November 30, 2019. Beginning on December 1, 2019, PennTex Operating is not entitled to a monthly demand charge, the commodity usage charge escalates to $0.05 per MMBtu, and PennTex Operating is entitled to receive a commodity usage charge from us equal to the minimum volume commitment (460,000 MMBtu per day through June 30, 2026, and 345,000 MMBtu per day thereafter) times $0.05 MMBtu. | ||||
Similarly, under each of the GTA and TSA, which commence concurrently with the operational dates of the two processing plants, PennTex Operating will be entitled to a commodity usage charge of $0.04 per MMBtu for all volumes of residue gas and natural gas liquids produced on our behalf. | ||||
Under the AMI, we granted PennTex Operating the exclusive right to build all of our midstream infrastructure in northern Louisiana and to provide midstream services to support our current and future production on our operated acreage within such area (other than production subject to existing third-party commitments). | ||||
Classic Pipeline Gas Gathering Agreement & Water Disposal Agreement | ||||
In November 2011, Classic Hydrocarbons Operating, LLC (“Classic Operating”), which became our wholly-owned subsidiary in connection with the restructuring transactions, and Classic Pipeline entered into a gas gathering agreement. Pursuant to the gas gathering agreement, Classic Operating dedicated to Classic Pipeline all of the natural gas produced (up to 50,000 MMBtus per day) on the properties operated by Classic Operating within certain counties in Texas through 2020, subject to one-year extensions at either party’s election. In May 2014, Classic Operating and Classic Pipeline amended the gas gathering agreement with respect to Classic Operating’s remaining assets located in Panola and Shelby Counties, Texas. Under the amended gas gathering agreement, Classic Operating agreed to pay a fee of (i) $0.30 per MMBtu, subject to an annual 3.5% inflationary escalation, based on volumes of natural gas delivered and processed, and (ii) $0.07 per MMBtu per stage of compression plus its allocated share of compressor fuel. The amended gas gathering agreement has a term until December 31, 2023, subject to one-year extensions at either party’s election. | ||||
In May 2014, Classic Operating and Classic Pipeline entered into a water disposal agreement. The water disposal agreement has a three-year term, subject to one-year extensions at either party’s election. Under the water disposal agreement, Classic Operating agreed to pay a fee of $1.10 per barrel for each barrel of water delivered to Classic Pipeline. | ||||
In February 2015, in connection with and as part of the Property Swap, Classic sold all of the equity interests owned by it in Classic Operating to Memorial Production Operating LLC, a wholly-owned subsidiary of MEMP, and Classic and Classic GP were merged into MRD Operating in March 2015. |
Business_Segment_Data
Business Segment Data | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Business Segment Data | MEMORIAL RESOURCE DEVELOPMENT CORP. | |||||||||||||||
NOTES TO UNAUDITED CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS | ||||||||||||||||
Note 14. Business Segment Data | ||||||||||||||||
Our reportable business segments are organized in a manner that reflects how management manages those business activities. | ||||||||||||||||
We have two reportable business segments, both of which are engaged in the acquisition, exploration and development of oil and natural gas properties. Our reportable business segments are as follows: | ||||||||||||||||
· | MRD—reflects the combined operations of the Company and its consolidating subsidiaries except for MEMP and its subsidiaries. | |||||||||||||||
· | MEMP—reflects the combined operations of MEMP and its subsidiaries. | |||||||||||||||
We evaluate segment performance based on Adjusted EBITDA. Adjusted EBITDA is defined as net income (loss), plus interest expense; loss on extinguishment of debt; income tax expense; depreciation, depletion and amortization (“DD&A”); impairment of goodwill and long-lived properties; accretion of asset retirement obligations (“AROs”); losses on commodity derivative contracts and cash settlements received; losses on sale of properties; incentive-based compensation expenses; exploration costs; provision for environmental remediation; equity loss from MEMP (MRD Segment only); cash distributions from MEMP (MRD Segment only); transaction related costs; amortization of investment premium; and other non-routine items, less interest income; income tax benefit; gains on commodity derivative contracts and cash settlements paid on expired positions; equity income from MEMP (MRD Segment only); gains on sale of assets and other non-routine items. | ||||||||||||||||
Financial information presented for the MEMP business segment is derived from the underlying consolidated and combined financial statements of MEMP that are publicly available. | ||||||||||||||||
Segment revenues and expenses include intersegment transactions. Our combined totals reflect the elimination of intersegment transactions. | ||||||||||||||||
In the MRD Segment’s individual financial statements, investments in the MEMP Segment that are included in the consolidated and combined financial statements are accounted for by the equity method. | ||||||||||||||||
The following table presents selected business segment information for the periods indicated (in thousands): | ||||||||||||||||
Other, | Consolidated | |||||||||||||||
Adjustments & | & Combined | |||||||||||||||
MRD | MEMP | Eliminations | Totals | |||||||||||||
Total revenues: | ||||||||||||||||
For the Three Months Ended March 31, 2015 | $ | 87,023 | $ | 92,818 | $ | — | $ | 179,841 | ||||||||
For the Three Months Ended March 31, 2014 | 87,736 | 116,885 | — | 204,621 | ||||||||||||
Adjusted EBITDA: (1) | ||||||||||||||||
For the Three Months Ended March 31, 2015 | 86,830 | 86,432 | (76 | ) | 173,186 | |||||||||||
For the Three Months Ended March 31, 2014 | 64,752 | 62,046 | (3,002 | ) | 123,796 | |||||||||||
Segment assets: (2) | ||||||||||||||||
As of March 31, 2015 | 1,535,233 | 3,051,190 | (12,201 | ) | 4,574,222 | |||||||||||
As of December 31, 2014 | 1,413,768 | 3,189,760 | (9,981 | ) | 4,593,547 | |||||||||||
Total cash expenditures for additions to long-lived assets: | ||||||||||||||||
For the Three Months Ended March 31, 2015 | 88,566 | 77,680 | — | 166,246 | ||||||||||||
For the Three Months Ended March 31, 2014 | 75,258 | 231,973 | — | 307,231 | ||||||||||||
-1 | Adjustments and eliminations for the three months ended March 31, 2015 and 2014 include less than $0.1 million and $3.0 million of cash distributions that MEMP paid MRD for the three months ended March 31, 2015 and 2014, respectively, related to MRD’s partnership interests in MEMP. In 2014, MRD LLC owned MEMP subordinated units, which were distributed to MRD Holdco in connection with the Company’s initial public offering in June 2014. | |||||||||||||||
-2 | As of March 31, 2015, adjustments and eliminations primarily represent the elimination of accounts receivable and accounts payable balances between the MRD Segment and the MEMP Segment. | |||||||||||||||
Calculation of Reportable Segments’ Adjusted EBITDA | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
31-Mar-15 | ||||||||||||||||
Combined | ||||||||||||||||
MRD | MEMP | Totals | ||||||||||||||
(In thousands) | ||||||||||||||||
Net income (loss) | $ | 50,371 | $ | (162,658 | ) | $ | (112,287 | ) | ||||||||
Interest expense, net | 9,756 | 28,818 | 38,574 | |||||||||||||
Income tax expense (benefit) | 47,558 | (2,370 | ) | 45,188 | ||||||||||||
DD&A | 40,532 | 51,266 | 91,798 | |||||||||||||
Impairment of proved oil and natural gas properties | — | 251,347 | 251,347 | |||||||||||||
Accretion of AROs | 123 | 1,634 | 1,757 | |||||||||||||
(Gain) loss on commodity derivative instruments | (108,190 | ) | (145,459 | ) | (253,649 | ) | ||||||||||
Cash settlements received (paid) on expired commodity derivative instruments | 32,749 | 60,124 | 92,873 | |||||||||||||
Transaction related costs | 1,281 | 1,299 | 2,580 | |||||||||||||
Incentive-based compensation expense | 11,710 | 2,341 | 14,051 | |||||||||||||
Exploration costs | 726 | 90 | 816 | |||||||||||||
Non-cash equity (income) loss from MEMP | 138 | — | 138 | |||||||||||||
Cash distributions from MEMP | 76 | — | 76 | |||||||||||||
Adjusted EBITDA | $ | 86,830 | $ | 86,432 | $ | 173,262 | ||||||||||
For the Three Months Ended | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Combined | ||||||||||||||||
MRD | MEMP | Totals | ||||||||||||||
(In thousands) | ||||||||||||||||
Net income (loss) | $ | 6,390 | $ | (32,892 | ) | $ | (26,502 | ) | ||||||||
Interest expense, net | 17,974 | 16,078 | 34,052 | |||||||||||||
Income tax expense (benefit) | 25 | 75 | 100 | |||||||||||||
DD&A | 25,129 | 32,550 | 57,679 | |||||||||||||
Accretion of AROs | 130 | 1,391 | 1,521 | |||||||||||||
(Gain) loss on commodity derivative instruments | 12,716 | 46,766 | 59,482 | |||||||||||||
Cash settlements received (paid) on expired commodity derivative instruments | (5,221 | ) | (7,969 | ) | (13,190 | ) | ||||||||||
(Gain) loss on sale of properties | (110 | ) | — | (110 | ) | |||||||||||
Transaction related costs | 568 | 1,894 | 2,462 | |||||||||||||
Incentive-based compensation expense | 1,023 | 1,295 | 2,318 | |||||||||||||
Exploration costs | 140 | 6 | 146 | |||||||||||||
Provision for environmental remediation | — | 2,852 | 2,852 | |||||||||||||
Non-cash equity (income) loss from MEMP | 2,986 | — | 2,986 | |||||||||||||
Cash distributions from MEMP | 3,002 | — | 3,002 | |||||||||||||
Adjusted EBITDA | $ | 64,752 | $ | 62,046 | $ | 126,798 | ||||||||||
The following table presents a reconciliation of total reportable segments’ Adjusted EBITDA to net income (loss) for each of the periods indicated (in thousands). | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Total Reportable Segments' Adjusted EBITDA | $ | 173,262 | $ | 126,798 | ||||||||||||
Adjustments to reconcile Adjusted EBITDA to net income (loss): | ||||||||||||||||
Interest expense, net | (38,574 | ) | (34,052 | ) | ||||||||||||
Income tax benefit (expense) | (45,188 | ) | (100 | ) | ||||||||||||
DD&A | (91,798 | ) | (57,679 | ) | ||||||||||||
Impairment of proved oil and natural gas properties | (251,347 | ) | — | |||||||||||||
Accretion of AROs | (1,757 | ) | (1,521 | ) | ||||||||||||
Gains (losses) on commodity derivative instruments | 253,649 | (59,482 | ) | |||||||||||||
Cash settlements paid (received) on expired commodity derivative instruments | (92,873 | ) | 13,190 | |||||||||||||
Gain (loss) on sale of properties | — | 110 | ||||||||||||||
Transaction related costs | (2,580 | ) | (2,462 | ) | ||||||||||||
Incentive-based compensation expense | (14,051 | ) | (2,318 | ) | ||||||||||||
Exploration costs | (816 | ) | (146 | ) | ||||||||||||
Provision for environmental remediation | — | (2,852 | ) | |||||||||||||
Cash distributions from MEMP | (76 | ) | (3,002 | ) | ||||||||||||
Net income (loss) | $ | (112,149 | ) | $ | (23,516 | ) | ||||||||||
Included below is our consolidated and combined statement of operations disaggregated by reportable segment for the period indicated (in thousands): | ||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||
MRD | MEMP | Other, Adjustments & Eliminations | Consolidated & Combined Totals | |||||||||||||
Revenues: | ||||||||||||||||
Oil & natural gas sales | $ | 87,023 | $ | 91,949 | $ | — | $ | 178,972 | ||||||||
Other revenues | — | 869 | — | 869 | ||||||||||||
Total revenues | 87,023 | 92,818 | — | 179,841 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Lease operating | 5,222 | 40,478 | — | 45,700 | ||||||||||||
Gathering, processing, and transportation | 14,763 | 8,220 | — | 22,983 | ||||||||||||
Pipeline operating | — | 446 | — | 446 | ||||||||||||
Exploration | 726 | 90 | — | 816 | ||||||||||||
Production and ad valorem taxes | 2,775 | 6,655 | — | 9,430 | ||||||||||||
Depreciation, depletion, and amortization | 40,532 | 51,266 | — | 91,798 | ||||||||||||
Impairment of proved oil and natural gas properties | — | 251,347 | — | 251,347 | ||||||||||||
Incentive unit compensation expense | 10,224 | — | — | 10,224 | ||||||||||||
General and administrative | 12,976 | 14,511 | — | 27,487 | ||||||||||||
Accretion of asset retirement obligations | 123 | 1,634 | — | 1,757 | ||||||||||||
(Gain) loss on commodity derivative instruments | (108,190 | ) | (145,459 | ) | — | (253,649 | ) | |||||||||
Total costs and expenses | (20,849 | ) | 229,188 | — | 208,339 | |||||||||||
Operating income (loss) | 107,872 | (136,370 | ) | — | (28,498 | ) | ||||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (9,756 | ) | (28,818 | ) | — | (38,574 | ) | |||||||||
Earnings from equity investments | (138 | ) | — | 138 | — | |||||||||||
Other, net | (49 | ) | 160 | — | 111 | |||||||||||
Total other income (expense) | (9,943 | ) | (28,658 | ) | 138 | (38,463 | ) | |||||||||
Income (loss) before income taxes | 97,929 | (165,028 | ) | 138 | (66,961 | ) | ||||||||||
Income tax benefit (expense) | (47,558 | ) | 2,370 | — | (45,188 | ) | ||||||||||
Net income (loss) | $ | 50,371 | $ | (162,658 | ) | $ | 138 | $ | (112,149 | ) | ||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||
MRD | MEMP | Other, Adjustments & Eliminations | Consolidated & Combined Totals | |||||||||||||
Revenues: | ||||||||||||||||
Oil & natural gas sales | $ | 87,733 | $ | 115,977 | $ | — | $ | 203,710 | ||||||||
Other revenues | 3 | 908 | — | 911 | ||||||||||||
Total revenues | 87,736 | 116,885 | — | 204,621 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Lease operating | 3,235 | 30,120 | — | 33,355 | ||||||||||||
Gathering, processing, and transportation | 8,557 | 5,563 | 14,120 | |||||||||||||
Pipeline operating | — | 489 | — | 489 | ||||||||||||
Exploration | 140 | 6 | — | 146 | ||||||||||||
Production and ad valorem taxes | 2,573 | 6,011 | — | 8,584 | ||||||||||||
Depreciation, depletion, and amortization | 25,129 | 32,550 | — | 57,679 | ||||||||||||
Incentive unit compensation expense | 1,023 | — | — | 1,023 | ||||||||||||
General and administrative | 6,999 | 10,740 | — | 17,739 | ||||||||||||
Accretion of asset retirement obligations | 130 | 1,391 | — | 1,521 | ||||||||||||
(Gain) loss on commodity derivative instruments | 12,716 | 46,766 | — | 59,482 | ||||||||||||
(Gain) loss on sale of properties | (110 | ) | — | — | (110 | ) | ||||||||||
Other, net | — | (12 | ) | — | (12 | ) | ||||||||||
Total costs and expenses | 60,392 | 133,624 | — | 194,016 | ||||||||||||
Operating income (loss) | 27,344 | (16,739 | ) | — | 10,605 | |||||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (17,974 | ) | (16,078 | ) | — | (34,052 | ) | |||||||||
Earnings from equity investments | (2,986 | ) | — | 2,986 | — | |||||||||||
Other, net | 31 | — | — | 31 | ||||||||||||
Total other income (expense) | (20,929 | ) | (16,078 | ) | 2,986 | (34,021 | ) | |||||||||
Income (loss) before income taxes | 6,415 | (32,817 | ) | 2,986 | (23,416 | ) | ||||||||||
Income tax benefit (expense) | (25 | ) | (75 | ) | — | (100 | ) | |||||||||
Net income (loss) | $ | 6,390 | $ | (32,892 | ) | $ | 2,986 | $ | (23,516 | ) | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments And Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Note 15. Commitments and Contingencies | |||
Litigation & Environmental | ||||
As part of our normal business activities, we may be named as defendants in litigation and legal proceedings, including those arising from regulatory and environmental matters. Although we are insured against various risks to the extent we believe it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to indemnify us against liabilities arising from future legal proceedings. We are not aware of any litigation, pending or threatened, that we believe is reasonably likely to have a significant adverse effect on our financial position, results of operations or cash flows. | ||||
At March 31, 2015 and December 31, 2014, we had $1.3 million and $2.1 million of environmental reserves recorded on our balance sheets, respectively. | ||||
Gas Processing Agreement | ||||
See Note 13 for additional information. | ||||
Supplemental Bond for Decommissioning Liabilities Trust Agreement | ||||
In connection with its 2009 acquisition of the Beta properties, Rise Energy Operating, LLC (“REO”), a wholly-owned subsidiary of MEMP, assumed an obligation with the BOEM for the decommissioning of the offshore production facilities. The trust account is held by REO for the benefit of all working interest owners. The following is a summary of the gross held-to-maturity investments held in the trust account less the outside working interest owners share as of March 31, 2015 (in thousands): | ||||
Amortized | ||||
Investment | Cost | |||
U.S. Bank Money Market Cash Equivalent | $ | 137,705 | ||
Less: Outside working interest owners share | (66,442 | ) | ||
$ | 71,263 | |||
The trust account must maintain minimum balances attributable to REO’s net working interest as follows (in thousands): | ||||
30-Jun-15 | $ | 72,450 | ||
30-Jun-16 | $ | 76,590 | ||
31-Dec-16 | $ | 78,660 | ||
As of March 31, 2015, the maximum remaining obligation net to REO’s interest was approximately $7.4 million. | ||||
Processing Plant Expansions by Third Party Gatherer | ||||
A discussion of processing plant expansions by a third party gatherer is included in our 2014 Form 10-K. | ||||
Related Party Agreements | ||||
See Note 13 for additional information. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16. Subsequent Events |
MRD Common Stock Repurchase Approval | |
For additional information, see Note 9. | |
MRD Borrowing Base Reaffirmed | |
For additional information, see Note 8. | |
MRD Sale of Oil and Natural Gas Properties in Colorado and Wyoming | |
For additional information, see Note 3. | |
MRD and PennTex Midstream Agreements | |
For additional information, see Note 13. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Overview | Overview | |||||||
Memorial Resource Development Corp. (the “Company”) is a publicly traded Delaware corporation, the common shares of which are listed on the NASDAQ Global Market (“NASDAQ”) under the symbol “MRD.” Unless the context requires otherwise, references to “we,” “us,” “our,” “MRD,” or “the Company” are intended to mean the business and operations of Memorial Resource Development Corp. and its consolidated subsidiaries. | ||||||||
References to: (i) “Memorial Production Partners,” “MEMP” and “the Partnership” refer to Memorial Production Partners LP individually and collectively with its subsidiaries, as the context requires; (ii) “MEMP GP” refer to Memorial Production Partners GP LLC, the general partner of the Partnership, which we own; (iii) “MRD Holdco” refer to MRD Holdco LLC, a holding company controlled by the Funds (defined below) that, together as part of a group, owns a majority of our common stock; (iv) “MRD LLC” refer to Memorial Resource Development LLC, which historically owned our predecessor’s business and was merged into MRD Operating LLC (“MRD Operating”), our 100% owned subsidiary, subsequent to our initial public offering; (v) “WildHorse Resources” refer to WildHorse Resources, LLC, which owned our interest in the Terryville Complex and merged into MRD Operating in February 2015; (vi) “our predecessor” refer collectively to MRD LLC and its former consolidated subsidiaries, consisting of Classic Hydrocarbons Holdings, L.P., Classic Hydrocarbons GP Co., L.L.C., Black Diamond Minerals, LLC, Beta Operating Company, LLC, MEMP GP, BlueStone Natural Resources Holdings, LLC (“BlueStone”), MRD Operating, WildHorse Resources, Tanos Energy LLC and each of their respective subsidiaries, including MEMP and its subsidiaries; (vii) “the Funds” refer collectively to Natural Gas Partners VIII, L.P., Natural Gas Partners IX, L.P. and NGP IX Offshore Holdings, L.P., which collectively control MRD Holdco; and (viii) “NGP” refer to Natural Gas Partners, a family of private equity investment funds organized to make direct equity investments in the energy industry, including the Funds. | ||||||||
Previous Owners | Previous Owners | |||||||
References to “the previous owners” for accounting and financial reporting purposes refer to the net profits interest that WildHorse Resources purchased from NGP Income Co-Investment Fund II, L.P. (“NGPCIF”) in February 2014 (“NGPCIF NPI”). NGPCIF is controlled by NGP. Upon the completion of certain acquisitions in 2010, WildHorse Resources sold a net profits interest in these properties to NGPCIF. Since WildHorse Resources sold the net profits interest, the historical results are accounted for as a working interest for all periods. | ||||||||
Our unaudited financial statements reported herein include the financial position and results attributable to NGPCIF NPI. | ||||||||
Basis of Presentation | Basis of Presentation | |||||||
The financial statements reported herein include the financial position and results attributable to both our predecessor and the previous owners on a combined basis for periods prior to our initial public offering. For periods after the completion of our public offering, our consolidated financial statements include our accounts and those of our subsidiaries in which we have a controlling interest. Due to our control of MEMP through our ownership of MEMP GP, we are required to consolidate MEMP for accounting and financial reporting purposes. MEMP is owned 99.9% by its limited partners and 0.1% by MEMP GP. | ||||||||
Certain amounts in the prior year financial statements have been reclassified to conform to current presentation. Gathering, processing, and transportation costs were previously accounted for as revenue deductions and are now being presented as costs and expenses on our statements of operations on a separate line item. | ||||||||
All material intercompany transactions and balances have been eliminated in preparation of our consolidated and combined financial statements. Our results of operations for the three months ended March 31, 2015 are not necessarily indicative of results expected for the full year. In our opinion, the accompanying unaudited condensed consolidated and combined financial statements include all adjustments of a normal recurring nature necessary for fair presentation. Although we believe the disclosures in these financial statements are adequate and make the information presented not misleading, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). | ||||||||
We have two reportable business segments, both of which are engaged in the acquisition, exploration and development of oil and natural gas properties (See Note 14). Our reportable business segments are as follows: | ||||||||
· | MRD—reflects the combined operations of the Company and its consolidating subsidiaries except for MEMP and its subsidiaries. | |||||||
· | MEMP—reflects the combined operations of MEMP and its subsidiaries. | |||||||
Segment financial information has been retrospectively revised for the acquisition by the MEMP Segment of certain assets from the MRD Segment in East Texas in February 2015 in exchange for approximately $78.0 million in cash and certain properties in North Louisiana (the “Property Swap”) for comparability purposes. Our equity statement reflects a $172.9 million equity transfer from stockholders’ equity to noncontrolling interest related to this transaction. This amount represents $250.8 million of net book value related to the assets transferred to MEMP allocated to its limited partners less $77.9 million of cash allocated to its limited partners. Amounts allocated to MEMP GP eliminate in consolidation. | ||||||||
Use of Estimates | Use of Estimates | |||||||
The preparation of the accompanying unaudited condensed consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated and combined financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||
Significant estimates include, but are not limited to, oil and natural gas reserves; depreciation, depletion, and amortization of proved oil and natural gas properties; future cash flows from oil and natural gas properties; impairment of long-lived assets; fair value of derivatives; fair value of equity compensation; fair values of assets acquired and liabilities assumed in business combinations and asset retirement obligations. | ||||||||
Accrued Liabilities | Accrued liabilities | |||||||
Current accrued liabilities consisted of the following at the dates indicated (in thousands): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Accrued capital expenditures | $ | 84,939 | $ | 80,350 | ||||
Accrued lease operating expense | 17,996 | 16,403 | ||||||
Accrued general and administrative expenses | 10,098 | 8,516 | ||||||
Accrued ad valorem and production taxes | 10,390 | 8,870 | ||||||
Accrued interest payable | 36,815 | 24,797 | ||||||
Accrued environmental | 1,309 | 2,092 | ||||||
Accrued current deferred income taxes | 51,937 | 51,929 | ||||||
Other miscellaneous, including operator advances | 4,185 | 6,043 | ||||||
$ | 217,669 | $ | 199,000 | |||||
Income Tax | Income Tax | |||||||
Our predecessor was organized as a pass-through entity for federal income tax purposes and was not subject to federal income taxes prior to our initial public offering in June 2014; however, certain of its consolidating subsidiaries were subject to federal and certain state income taxes. We are organized as a taxable C corporation and subject to federal and certain state income taxes. We are also subject to the Texas margin tax and certain aspects of the tax make it similar to an income tax. The net income (loss) attributable to noncontrolling interest is related to MEMP, which is a pass-through entity for federal income tax purposes. As discussed in Note 12, the compensation expense associated with the incentive units of MRD Holdco creates a nondeductible permanent difference for income tax purposes. We reported no liability for unrecognized tax benefits as of March 31, 2015 and expect no significant change to the unrecognized tax benefits in the next twelve months. | ||||||||
Our effective tax rate is negative 67.5% for the three months ended March 31, 2015, which differs from the statutory federal income tax rate of 35% primarily due to the following recurring items: | ||||||||
· | 84.0% reduction to the effective tax rate related to pass-through entities; | |||||||
· | 10.6% reduction to the effective tax rate related to non-deductible incentive compensation; and | |||||||
· | 8.1% reduction to the effective tax rate related to state income tax provision, net of federal benefit. | |||||||
We had a net noncurrent deferred income tax liability of $95.0 million at December 31, 2014, of which $29.2 million was attributable to certain oil and gas properties in East Texas that MEMP acquired from us in February 2015 as noted above. A deferred income tax benefit of $1.2 million associated with these oil and gas properties was recorded during February 2015. As such, a net deferred income tax liability of $28.0 million has been reduced through additional paid capital in our equity statement. | ||||||||
New Accounting Pronouncements | New Accounting Pronouncements | |||||||
Presentation of Debt Issuance Cost. In April 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The guidance is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect the impact of adopting this guidance to be material to the Company's financial statements and related disclosures. | ||||||||
Amendments to Consolidation Analysis. In February 2015, the FASB issued an accounting standards update to improve consolidation guidance for certain types of legal entities. The guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships, and provides a scope exception from consolidation guidance for certain money market funds. These provisions are effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods, with early adoption permitted. These provisions may also be adopted using either a full retrospective or a modified retrospective approach. Although the Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and footnote disclosures, we expect that MEMP will become a VIE. We will either: (i) continue to consolidate MEMP and become subject to the VIE primary beneficiary disclosure requirements or (ii) no longer consolidate MEMP under the revised VIE consolidation requirements and provide disclosures that apply to variable interest holders that do not consolidate a VIE. The deconsolidation of MEMP would have a material impact on our consolidated financial statements and related disclosures. | ||||||||
Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations and cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Schedule of Accrued Liabilities | Current accrued liabilities consisted of the following at the dates indicated (in thousands): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Accrued capital expenditures | $ | 84,939 | $ | 80,350 | ||||
Accrued lease operating expense | 17,996 | 16,403 | ||||||
Accrued general and administrative expenses | 10,098 | 8,516 | ||||||
Accrued ad valorem and production taxes | 10,390 | 8,870 | ||||||
Accrued interest payable | 36,815 | 24,797 | ||||||
Accrued environmental | 1,309 | 2,092 | ||||||
Accrued current deferred income taxes | 51,937 | 51,929 | ||||||
Other miscellaneous, including operator advances | 4,185 | 6,043 | ||||||
$ | 217,669 | $ | 199,000 | |||||
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Business Combinations [Abstract] | |||||||
Acquisition-Related Costs | Acquisition-related costs are included in general and administrative expenses in the accompanying statements of operations for the periods indicated below (in thousands): | ||||||
For the Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
$ | 2,580 | $ | 2,462 | ||||
Unaudited Pro Forma Results of Operations | In July 2014, MEMP closed a third-party acquisition that was deemed significant to our consolidated financial statements. The following unaudited pro forma combined results of operations are provided for the three months ended March 31, 2014 as though this third-party acquisition had been completed on January 1, 2013. The unaudited pro forma financial information was derived from the historical combined statements of operations of our predecessor and previous owners and adjusted to include: (i) the revenues and direct operating expenses associated with oil and gas properties acquired, (ii) depletion expense applied to the adjusted basis of the properties acquired and (iii) interest expense on additional borrowings necessary to finance the acquisition. The unaudited pro forma financial information does not purport to be indicative of results of operations that would have occurred had the transaction occurred on the basis assumed above, nor is such information indicative of expected future results of operations. | ||||||
For the Three Months Ended | |||||||
March 31, | |||||||
2014 | |||||||
(In thousands) | |||||||
Revenues | $ | 252,019 | |||||
Net income (loss) | (14,817 | ) | |||||
Fair_Value_Measurements_of_Fin1
Fair Value Measurements of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the gross derivative assets and liabilities that are measured at fair value on a recurring basis at March 31, 2015 and December 31, 2014 for each of the fair value hierarchy levels: | |||||||||||||||
Fair Value Measurements at March 31, 2015 Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active | Observable | Unobservable | ||||||||||||||
Market | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity derivatives | $ | — | $ | 1,022,706 | $ | — | $ | 1,022,706 | ||||||||
Interest rate derivatives | — | 10 | — | 10 | ||||||||||||
Total assets | $ | — | $ | 1,022,716 | $ | — | $ | 1,022,716 | ||||||||
Liabilities: | ||||||||||||||||
Commodity derivatives | $ | — | $ | 87,809 | $ | — | $ | 87,809 | ||||||||
Interest rate derivatives | — | 3,549 | — | 3,549 | ||||||||||||
Total liabilities | $ | — | $ | 91,358 | $ | — | $ | 91,358 | ||||||||
Fair Value Measurements at December 31, 2014 Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active | Observable | Unobservable | ||||||||||||||
Market | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity derivatives | $ | — | $ | 845,759 | $ | — | $ | 845,759 | ||||||||
Interest rate derivatives | — | 1,305 | — | 1,305 | ||||||||||||
Total assets | $ | — | $ | 847,064 | $ | — | $ | 847,064 | ||||||||
Liabilities: | ||||||||||||||||
Commodity derivatives | $ | — | $ | 71,639 | $ | — | $ | 71,639 | ||||||||
Interest rate derivatives | — | 3,289 | — | 3,289 | ||||||||||||
Total liabilities | $ | — | $ | 74,928 | $ | — | $ | 74,928 | ||||||||
Risk_Management_and_Derivative1
Risk Management and Derivative Instruments (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Open Commodity Positions | At March 31, 2015, the MRD Segment had the following open commodity positions: | |||||||||||||||||||
Remaining | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | |||||||||||||||||
Natural Gas Derivative Contracts: | ||||||||||||||||||||
Fixed price swap contracts: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 3,600,000 | 2,570,000 | 1,770,000 | 4,600,000 | ||||||||||||||||
Weighted-average fixed price | $ | 4.15 | $ | 4.09 | $ | 4.24 | $ | 4.06 | ||||||||||||
Collar contracts: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 130,000 | 1,100,000 | 1,050,000 | — | ||||||||||||||||
Weighted-average floor price | $ | 4 | $ | 4 | $ | 4 | $ | — | ||||||||||||
Weighted-average ceiling price | $ | 4.64 | $ | 4.71 | $ | 5.06 | $ | — | ||||||||||||
Purchased put option contracts: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 3,366,667 | 4,100,000 | 3,450,000 | 2,850,000 | ||||||||||||||||
Weighted-average fixed price | $ | 3.75 | $ | 3.75 | $ | 3.75 | $ | 3.75 | ||||||||||||
Weighted-average deferred premium paid | $ | (0.33 | ) | $ | (0.36 | ) | $ | (0.35 | ) | $ | (0.35 | ) | ||||||||
Written call option contracts (1): | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 2,625,000 | — | — | — | ||||||||||||||||
Weighted-average sold strike price | $ | 3.75 | $ | — | $ | — | $ | — | ||||||||||||
Weighted-average deferred premium received | $ | 0.08 | $ | — | $ | — | $ | — | ||||||||||||
TGT Z1 basis swaps: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 3,480,000 | 1,120,000 | 200,000 | — | ||||||||||||||||
Spread - Henry Hub | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.08 | ) | $ | — | |||||||||
Crude Oil Derivative Contracts: | ||||||||||||||||||||
Fixed price swap contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 45,000 | 8,500 | 28,000 | 31,625 | ||||||||||||||||
Weighted-average fixed price | $ | 91.67 | $ | 84.8 | $ | 84.7 | $ | 84.5 | ||||||||||||
Collar contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 2,000 | 27,000 | — | — | ||||||||||||||||
Weighted-average floor price | $ | 85 | $ | 80 | $ | — | $ | — | ||||||||||||
Weighted-average ceiling price | $ | 101.35 | $ | 99.7 | $ | — | $ | — | ||||||||||||
Purchased put option contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 30,333 | — | — | — | ||||||||||||||||
Weighted-average fixed price | $ | 85 | $ | — | $ | — | $ | — | ||||||||||||
Weighted-average deferred premium paid | $ | (3.80 | ) | $ | — | $ | — | $ | — | |||||||||||
Written call option contracts (1): | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 22,750 | — | — | — | ||||||||||||||||
Weighted-average sold strike price | $ | 85 | $ | — | $ | — | $ | — | ||||||||||||
Weighted-average deferred premium received | $ | 0.48 | $ | — | $ | — | $ | — | ||||||||||||
NGL Derivative Contracts: | ||||||||||||||||||||
Fixed price swap contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 155,000 | 185,658 | — | — | ||||||||||||||||
Weighted-average fixed price | $ | 41.58 | $ | 34.06 | $ | — | $ | — | ||||||||||||
-1 | These transactions were entered into for the purpose of creating a ceiling on our put options, which effectively converted the applicable puts into swaps. | |||||||||||||||||||
At March 31, 2015, the MEMP Segment had the following open commodity positions: | ||||||||||||||||||||
Remaining | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Natural Gas Derivative Contracts: | ||||||||||||||||||||
Fixed price swap contracts: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 3,061,181 | 3,292,442 | 3,050,067 | 2,760,000 | 2,514,583 | |||||||||||||||
Weighted-average fixed price | $ | 4.16 | $ | 4.22 | $ | 4.14 | $ | 4.28 | $ | 4.43 | ||||||||||
Collar contracts: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 350,000 | — | — | — | — | |||||||||||||||
Weighted-average floor price | $ | 4.62 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Weighted-average ceiling price | $ | 5.8 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Call spreads (1): | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 80,000 | — | — | — | — | |||||||||||||||
Weighted-average sold strike price | $ | 5.25 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Weighted-average bought strike price | $ | 6.75 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Basis swaps: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 3,390,000 | 3,108,333 | 415,000 | 115,000 | — | |||||||||||||||
Spread | $ | (0.12 | ) | $ | (0.05 | ) | $ | — | $ | 0.15 | $ | — | ||||||||
Crude Oil Derivative Contracts: | ||||||||||||||||||||
Fixed price swap contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 273,864 | 279,813 | 301,600 | 312,000 | 160,000 | |||||||||||||||
Weighted-average fixed price | $ | 91.34 | $ | 86.87 | $ | 84.7 | $ | 83.74 | $ | 85.52 | ||||||||||
Collar contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 5,000 | — | — | — | — | |||||||||||||||
Weighted-average floor price | $ | 80 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Weighted-average ceiling price | $ | 94 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Basis swaps: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 97,333 | 95,000 | — | — | — | |||||||||||||||
Spread | $ | (7.07 | ) | $ | (9.56 | ) | $ | — | $ | — | $ | — | ||||||||
NGL Derivative Contracts: | ||||||||||||||||||||
Fixed price swap contracts: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 211,867 | 158,600 | 43,300 | — | — | |||||||||||||||
Weighted-average fixed price | $ | 42.3 | $ | 40.36 | $ | 37.55 | $ | — | $ | — | ||||||||||
-1 | These transactions were entered into for the purpose of eliminating the ceiling portion of certain collar arrangements, which effectively converted the applicable collars into swaps. | |||||||||||||||||||
The MEMP Segment basis swaps included in the table above is presented on a disaggregated basis below: | ||||||||||||||||||||
Remaining | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | |||||||||||||||||
Natural Gas Derivative Contracts: | ||||||||||||||||||||
NGPL TexOk basis swaps: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 2,730,000 | 2,703,333 | 300,000 | — | ||||||||||||||||
Spread - Henry Hub | $ | (0.12 | ) | $ | (0.07 | ) | $ | (0.05 | ) | $ | — | |||||||||
HSC basis swaps: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 150,000 | 135,000 | 115,000 | 115,000 | ||||||||||||||||
Spread - Henry Hub | $ | (0.08 | ) | $ | 0.07 | $ | 0.14 | $ | 0.15 | |||||||||||
CIG basis swaps: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 210,000 | — | — | — | ||||||||||||||||
Spread - Henry Hub | $ | (0.25 | ) | $ | — | $ | — | $ | — | |||||||||||
TETCO STX basis swaps: | ||||||||||||||||||||
Average Monthly Volume (MMBtu) | 300,000 | 270,000 | — | — | ||||||||||||||||
Spread - Henry Hub | $ | (0.09 | ) | $ | 0.06 | $ | — | $ | — | |||||||||||
Crude Oil Derivative Contracts: | ||||||||||||||||||||
Midway-Sunset basis swaps: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 57,333 | 55,000 | — | — | ||||||||||||||||
Spread - Brent | $ | (9.73 | ) | $ | (13.35 | ) | $ | — | $ | — | ||||||||||
Midland basis swaps: | ||||||||||||||||||||
Average Monthly Volume (Bbls) | 40,000 | 40,000 | — | — | ||||||||||||||||
Spread - WTI | $ | (3.25 | ) | $ | (4.34 | ) | $ | — | $ | — | ||||||||||
Schedule of Entity's Interest Rate Swap Open Positions | At March 31, 2015, we had the following interest rate swap open positions: | |||||||||||||||||||
Remaining | ||||||||||||||||||||
Credit Facility | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
MEMP: | ||||||||||||||||||||
Average Monthly Notional (in thousands) | $ | 386,111 | $ | 400,000 | $ | 400,000 | $ | 100,000 | ||||||||||||
Weighted-average fixed rate | 1.247 | % | 0.943 | % | 1.612 | % | 1.946 | % | ||||||||||||
Floating rate | 1 Month LIBOR | 1 Month LIBOR | 1 Month LIBOR | 1 Month LIBOR | ||||||||||||||||
Summary of Gross Fair Value and Net Recorded Fair Value of Derivative Instruments by Appropriate Balance Sheet Classification | The following table summarizes both: (i) the gross fair value of derivative instruments by the appropriate balance sheet classification even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the balance sheet and (ii) the net recorded fair value as reflected on the balance sheet at March 31, 2015 and December 31, 2014. There was no cash collateral received or pledged associated with our derivative instruments since most of the counterparties, or certain of their affiliates, to our derivative contracts are lenders under our collective credit agreements. | |||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||||||
Type | Balance Sheet Location | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Commodity contracts | Short-term derivative instruments | $ | 398,708 | $ | 378,908 | $ | 41,954 | $ | 38,852 | |||||||||||
Interest rate swaps | Short-term derivative instruments | — | — | 2,994 | 3,289 | |||||||||||||||
Gross fair value | 398,708 | 378,908 | 44,948 | 42,141 | ||||||||||||||||
Netting arrangements | Short-term derivative instruments | (41,648 | ) | (38,852 | ) | (41,648 | ) | (38,852 | ) | |||||||||||
Net recorded fair value | Short-term derivative instruments | $ | 357,060 | $ | 340,056 | $ | 3,300 | $ | 3,289 | |||||||||||
Commodity contracts | Long-term derivative instruments | $ | 623,998 | $ | 466,851 | $ | 45,855 | $ | 32,787 | |||||||||||
Interest rate swaps | Long-term derivative instruments | 10 | 1,305 | 555 | — | |||||||||||||||
Gross fair value | 624,008 | 468,156 | 46,410 | 32,787 | ||||||||||||||||
Netting arrangements | Long-term derivative instruments | (45,855 | ) | (32,787 | ) | (45,855 | ) | (32,787 | ) | |||||||||||
Net recorded fair value | Long-term derivative instruments | $ | 578,153 | $ | 435,369 | $ | 555 | $ | — | |||||||||||
Schedule of Gains and Losses Related to Derivative Instruments | The following table details the gains and losses related to derivative instruments for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Statements of | March 31, | |||||||||||||||||||
Operations Location | 2015 | 2014 | ||||||||||||||||||
Commodity derivative contracts | (Gain) loss on commodity derivatives | $ | (253,649 | ) | $ | 59,482 | ||||||||||||||
Interest rate derivatives | Interest expense, net | 2,441 | 511 | |||||||||||||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ||||
Summary of Changes in Asset Retirement Obligations | The following table presents the changes in the asset retirement obligations for the three months ended March 31, 2015 (in thousands): | |||
Asset retirement obligations at beginning of period | $ | 122,531 | ||
Liabilities added from acquisitions or drilling | 39 | |||
Revisions | 149 | |||
Accretion expense | 1,757 | |||
Asset retirement obligations at end of period | $ | 124,476 | ||
Restricted_Investments_Tables
Restricted Investments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Schedule Of Investments [Abstract] | ||||||||
Restricted Investment Balance | The components of the restricted investment balance consisted of the following at the dates indicated: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
BOEM platform abandonment (See Note 15) | $ | 71,263 | $ | 69,954 | ||||
BOEM lease bonds | 794 | 794 | ||||||
SPBPC Collateral: | ||||||||
Contractual pipeline and surface facilities abandonment | 2,818 | 2,701 | ||||||
California State Lands Commission pipeline right-of-way bond | 3,005 | 3,005 | ||||||
City of Long Beach pipeline facility permit | 500 | 500 | ||||||
Federal pipeline right-of-way bond | 307 | 307 | ||||||
Port of Long Beach pipeline license | 100 | 100 | ||||||
Restricted investments | $ | 78,787 | $ | 77,361 | ||||
Long_Term_Debt_Tables
Long Term Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Consolidated Debt Obligations | The following table presents our consolidated debt obligations at the dates indicated: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
MRD Segment: | ||||||||
MRD $2.0 billion revolving credit facility, variable-rate, due June 2019 | $ | 144,000 | $ | 183,000 | ||||
5.875% senior unsecured notes, due July 2022 (1) | 600,000 | 600,000 | ||||||
Subtotal | 744,000 | 783,000 | ||||||
MEMP Segment: | ||||||||
MEMP $2.0 billion revolving credit facility, variable-rate, due March 2018 | 573,000 | 412,000 | ||||||
7.625% senior unsecured notes, due May 2021 ("2021 Senior Notes") (2) | 700,000 | 700,000 | ||||||
6.875% senior unsecured notes, due August 2022 ("2022 Senior Notes") (3) | 496,990 | 500,000 | ||||||
Unamortized discounts | (15,945 | ) | (16,587 | ) | ||||
Subtotal | 1,754,045 | 1,595,413 | ||||||
Total long-term debt | $ | 2,498,045 | $ | 2,378,413 | ||||
-1 | The estimated fair value of this fixed-rate debt was $564.0 million and $534.0 million at March 31, 2015 and December 31, 2014, respectively. The estimated fair value is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. | |||||||
-2 | The estimated fair value of this fixed-rate debt was $640.5 million and $563.5 million at March 31, 2015 and December 31, 2014, respectively. The estimated fair value is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. | |||||||
-3 | The estimated fair value of this fixed-rate debt was $437.4 million and $380.0 million at March 31, 2015 and December 31, 2014, respectively. The estimated fair value is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. | |||||||
Borrowing Base Credit Facility | The borrowing base for each credit facility was the following at the date indicated (in thousands): | |||||||
March 31, | ||||||||
2015 | ||||||||
MRD Segment: | ||||||||
MRD $2.0 billion revolving credit facility, variable-rate, due June 2019 | $ | 725,000 | ||||||
MEMP Segment: | ||||||||
MEMP $2.0 billion revolving credit facility, variable-rate, due March 2018 | 1,300,000 | |||||||
Summary of Weighted-Average Interest Rates Paid On Variable-Rate Debt Obligations | The following table presents the weighted-average interest rates paid on our consolidated variable-rate debt obligations for the periods presented: | |||||||
For the Three Months Ended | ||||||||
Credit Facility | March 31, | |||||||
2015 | 2014 | |||||||
MRD Segment: | ||||||||
MRD revolving credit facility | 1.87 | % | n/a | |||||
WildHorse Resources revolver terminated June 2014 | n/a | 3.97 | % | |||||
WildHorse Resources second lien terminated June 2014 | n/a | 6.44 | % | |||||
MEMP Segment: | ||||||||
MEMP revolving credit facility | 1.9 | % | 1.66 | % | ||||
Summary of Unamortized Deferred Financing Costs Associated with Consolidated Debt Obligations | Unamortized deferred financing costs associated with our consolidated debt obligations were as follows at the dates indicated: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
MRD Segment: | ||||||||
MRD revolving credit facility | $ | 4,060 | $ | 4,285 | ||||
MRD senior notes | 12,041 | 12,455 | ||||||
MEMP Segment: | ||||||||
MEMP revolving credit facility | 5,395 | 6,468 | ||||||
2021 Senior Notes | 12,779 | 13,308 | ||||||
2022 Senior Notes | 7,656 | 7,958 | ||||||
$ | 41,931 | $ | 44,474 | |||||
Stockholders_Equity_and_Noncon1
Stockholders' Equity and Noncontrolling Interests (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Equity [Abstract] | ||||
Summary of Changes In Common Shares Issued | The Company's authorized capital stock includes 600,000,000 shares of common stock, $0.01 par value per share. The following is a summary of the changes in our common shares issued for the three months ended March 31, 2015: | |||
Balance December 31, 2014 | 193,435,414 | |||
Shares of common stock repurchased | (2,764,887 | ) | ||
Restricted common shares issued (Note 11) | 115,302 | |||
Restricted common shares forfeited | (9,211 | ) | ||
Balance March 31, 2015 | 190,776,618 | |||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Earnings Per Share [Abstract] | ||||
Summary of Calculation of Earnings (Loss) Per Share, or EPS | The following sets forth the calculation of earnings (loss) per share, or EPS, for the periods indicated (in thousands, except per share amounts): | |||
For the Three | ||||
Months Ended | ||||
March 31, | ||||
2015 | ||||
Numerator: | ||||
Net income (loss) available to common stockholders | $ | 45,615 | ||
Denominator: | ||||
Weighted average common shares outstanding | 190,705 | |||
Basic EPS | $ | 0.24 | ||
Diluted EPS (1) | $ | 0.24 | ||
-1 | The Company determines the more dilutive of either the two-class method or the treasury stock method for diluted EPS. The two-class method was more dilutive for the period presented. Under the treasury stock method, 151,123 incremental shares were included in the diluted EPS computation. |
LongTerm_Incentive_Plans_Table
Long-Term Incentive Plans (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||
Summary of Information Regarding Restricted Common Unit Awards | The following table summarizes information regarding restricted common share awards granted under the Memorial Resource Development Corp. 2014 Long-Term Incentive Plan for the periods presented: | |||||||
Number of Shares | Weighted-Average Grant Date Fair Value per Share (1) | |||||||
Restricted common shares outstanding at December 31, 2014 | 1,059,211 | $ | 19 | |||||
Granted (2) | 115,302 | $ | 18.05 | |||||
Forfeited | (9,211 | ) | $ | 19 | ||||
Restricted common shares outstanding at March 31, 2015 | 1,165,302 | $ | 18.91 | |||||
(1)Determined by dividing the aggregate grant date fair value of awards issued. | ||||||||
-2 | The aggregate grant date fair value of restricted common share awards issued in 2015 was $2.1 million based on a grant date market price of $18.05 per share. | |||||||
The following table summarizes information regarding restricted common unit awards granted under the Memorial Production Partners GP LLC Long-Term Incentive Plan for the periods presented: | ||||||||
Number of Units | Weighted-Average Grant Date Fair Value per Unit (1) | |||||||
Restricted common units outstanding at December 31, 2014 | 1,093,520 | $ | 20.93 | |||||
Granted (2) | 157,360 | $ | 15.45 | |||||
Forfeited | (12,467 | ) | $ | 20.73 | ||||
Vested | (78,307 | ) | $ | 19.16 | ||||
Restricted common units outstanding at March 31, 2015 | 1,160,106 | $ | 20.31 | |||||
-1 | Determined by dividing the aggregate grant date fair value of awards issued. | |||||||
-2 | The aggregate grant date fair value of restricted common unit awards issued in 2015 was $2.4 million based on a grant date market price of $15.45 per unit. | |||||||
Summary of Amount of Compensation Expense Recognized | The following table summarizes the amount of recognized compensation expense associated with these awards that are reflected in the accompanying statements of operations for the periods presented (in thousands): | |||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
$ | 1,486 | n/a | ||||||
The following table summarizes the amount of recognized compensation expense associated with these awards that are reflected in the accompanying statements of operations for the periods presented (in thousands): | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
$ | 2,341 | $ | 1,295 | |||||
Incentive_Units_Tables
Incentive Units (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation Related Costs [Abstract] | ||||||||
Fair Value of Incentive Units Estimated | The fair value of the incentive units was estimated using a Monte Carlo simulation valuation model with the following assumptions: | |||||||
Exchanged Incentive Units | Subsequent Incentive Units | |||||||
Valuation date | 3/31/15 | 3/31/15 | ||||||
Dividend yield | 0 | % | 0 | % | ||||
Expected volatility | 27.9 | % | 27.9 | % | ||||
Risk-free rate | 0.61 | % | 0.61 | % | ||||
Expected life (years) | 2.17 | 2.17 | ||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Related Party Transactions [Abstract] | ||||
Schedule of Net Assets Recorded | WildHorse Resources recorded the following net assets (in thousands): | |||
Accounts receivable | $ | 2,274 | ||
Oil and natural gas properties, net | 40,056 | |||
Accrued liabilities | (297 | ) | ||
Asset retirement obligations | (277 | ) | ||
Net assets | $ | 41,756 | ||
Business_Segment_Data_Tables
Business Segment Data (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Summary of Selected Business Segment Information | The following table presents selected business segment information for the periods indicated (in thousands): | |||||||||||||||
Other, | Consolidated | |||||||||||||||
Adjustments & | & Combined | |||||||||||||||
MRD | MEMP | Eliminations | Totals | |||||||||||||
Total revenues: | ||||||||||||||||
For the Three Months Ended March 31, 2015 | $ | 87,023 | $ | 92,818 | $ | — | $ | 179,841 | ||||||||
For the Three Months Ended March 31, 2014 | 87,736 | 116,885 | — | 204,621 | ||||||||||||
Adjusted EBITDA: (1) | ||||||||||||||||
For the Three Months Ended March 31, 2015 | 86,830 | 86,432 | (76 | ) | 173,186 | |||||||||||
For the Three Months Ended March 31, 2014 | 64,752 | 62,046 | (3,002 | ) | 123,796 | |||||||||||
Segment assets: (2) | ||||||||||||||||
As of March 31, 2015 | 1,535,233 | 3,051,190 | (12,201 | ) | 4,574,222 | |||||||||||
As of December 31, 2014 | 1,413,768 | 3,189,760 | (9,981 | ) | 4,593,547 | |||||||||||
Total cash expenditures for additions to long-lived assets: | ||||||||||||||||
For the Three Months Ended March 31, 2015 | 88,566 | 77,680 | — | 166,246 | ||||||||||||
For the Three Months Ended March 31, 2014 | 75,258 | 231,973 | — | 307,231 | ||||||||||||
-1 | Adjustments and eliminations for the three months ended March 31, 2015 and 2014 include less than $0.1 million and $3.0 million of cash distributions that MEMP paid MRD for the three months ended March 31, 2015 and 2014, respectively, related to MRD’s partnership interests in MEMP. In 2014, MRD LLC owned MEMP subordinated units, which were distributed to MRD Holdco in connection with the Company’s initial public offering in June 2014. | |||||||||||||||
-2 | As of March 31, 2015, adjustments and eliminations primarily represent the elimination of accounts receivable and accounts payable balances between the MRD Segment and the MEMP Segment. | |||||||||||||||
Schedule of Calculation of Reportable Segment's Adjusted EBITDA | Calculation of Reportable Segments’ Adjusted EBITDA | |||||||||||||||
For the Three Months Ended | ||||||||||||||||
31-Mar-15 | ||||||||||||||||
Combined | ||||||||||||||||
MRD | MEMP | Totals | ||||||||||||||
(In thousands) | ||||||||||||||||
Net income (loss) | $ | 50,371 | $ | (162,658 | ) | $ | (112,287 | ) | ||||||||
Interest expense, net | 9,756 | 28,818 | 38,574 | |||||||||||||
Income tax expense (benefit) | 47,558 | (2,370 | ) | 45,188 | ||||||||||||
DD&A | 40,532 | 51,266 | 91,798 | |||||||||||||
Impairment of proved oil and natural gas properties | — | 251,347 | 251,347 | |||||||||||||
Accretion of AROs | 123 | 1,634 | 1,757 | |||||||||||||
(Gain) loss on commodity derivative instruments | (108,190 | ) | (145,459 | ) | (253,649 | ) | ||||||||||
Cash settlements received (paid) on expired commodity derivative instruments | 32,749 | 60,124 | 92,873 | |||||||||||||
Transaction related costs | 1,281 | 1,299 | 2,580 | |||||||||||||
Incentive-based compensation expense | 11,710 | 2,341 | 14,051 | |||||||||||||
Exploration costs | 726 | 90 | 816 | |||||||||||||
Non-cash equity (income) loss from MEMP | 138 | — | 138 | |||||||||||||
Cash distributions from MEMP | 76 | — | 76 | |||||||||||||
Adjusted EBITDA | $ | 86,830 | $ | 86,432 | $ | 173,262 | ||||||||||
For the Three Months Ended | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Combined | ||||||||||||||||
MRD | MEMP | Totals | ||||||||||||||
(In thousands) | ||||||||||||||||
Net income (loss) | $ | 6,390 | $ | (32,892 | ) | $ | (26,502 | ) | ||||||||
Interest expense, net | 17,974 | 16,078 | 34,052 | |||||||||||||
Income tax expense (benefit) | 25 | 75 | 100 | |||||||||||||
DD&A | 25,129 | 32,550 | 57,679 | |||||||||||||
Accretion of AROs | 130 | 1,391 | 1,521 | |||||||||||||
(Gain) loss on commodity derivative instruments | 12,716 | 46,766 | 59,482 | |||||||||||||
Cash settlements received (paid) on expired commodity derivative instruments | (5,221 | ) | (7,969 | ) | (13,190 | ) | ||||||||||
(Gain) loss on sale of properties | (110 | ) | — | (110 | ) | |||||||||||
Transaction related costs | 568 | 1,894 | 2,462 | |||||||||||||
Incentive-based compensation expense | 1,023 | 1,295 | 2,318 | |||||||||||||
Exploration costs | 140 | 6 | 146 | |||||||||||||
Provision for environmental remediation | — | 2,852 | 2,852 | |||||||||||||
Non-cash equity (income) loss from MEMP | 2,986 | — | 2,986 | |||||||||||||
Cash distributions from MEMP | 3,002 | — | 3,002 | |||||||||||||
Adjusted EBITDA | $ | 64,752 | $ | 62,046 | $ | 126,798 | ||||||||||
Reconciliation of Total Reportable Segment's Adjusted EBITDA to Net Income (Loss) | The following table presents a reconciliation of total reportable segments’ Adjusted EBITDA to net income (loss) for each of the periods indicated (in thousands). | |||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Total Reportable Segments' Adjusted EBITDA | $ | 173,262 | $ | 126,798 | ||||||||||||
Adjustments to reconcile Adjusted EBITDA to net income (loss): | ||||||||||||||||
Interest expense, net | (38,574 | ) | (34,052 | ) | ||||||||||||
Income tax benefit (expense) | (45,188 | ) | (100 | ) | ||||||||||||
DD&A | (91,798 | ) | (57,679 | ) | ||||||||||||
Impairment of proved oil and natural gas properties | (251,347 | ) | — | |||||||||||||
Accretion of AROs | (1,757 | ) | (1,521 | ) | ||||||||||||
Gains (losses) on commodity derivative instruments | 253,649 | (59,482 | ) | |||||||||||||
Cash settlements paid (received) on expired commodity derivative instruments | (92,873 | ) | 13,190 | |||||||||||||
Gain (loss) on sale of properties | — | 110 | ||||||||||||||
Transaction related costs | (2,580 | ) | (2,462 | ) | ||||||||||||
Incentive-based compensation expense | (14,051 | ) | (2,318 | ) | ||||||||||||
Exploration costs | (816 | ) | (146 | ) | ||||||||||||
Provision for environmental remediation | — | (2,852 | ) | |||||||||||||
Cash distributions from MEMP | (76 | ) | (3,002 | ) | ||||||||||||
Net income (loss) | $ | (112,149 | ) | $ | (23,516 | ) | ||||||||||
Schedule of Consolidated and Combined Statement of Operations Disaggregated by Reportable Segment | Included below is our consolidated and combined statement of operations disaggregated by reportable segment for the period indicated (in thousands): | |||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||
MRD | MEMP | Other, Adjustments & Eliminations | Consolidated & Combined Totals | |||||||||||||
Revenues: | ||||||||||||||||
Oil & natural gas sales | $ | 87,023 | $ | 91,949 | $ | — | $ | 178,972 | ||||||||
Other revenues | — | 869 | — | 869 | ||||||||||||
Total revenues | 87,023 | 92,818 | — | 179,841 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Lease operating | 5,222 | 40,478 | — | 45,700 | ||||||||||||
Gathering, processing, and transportation | 14,763 | 8,220 | — | 22,983 | ||||||||||||
Pipeline operating | — | 446 | — | 446 | ||||||||||||
Exploration | 726 | 90 | — | 816 | ||||||||||||
Production and ad valorem taxes | 2,775 | 6,655 | — | 9,430 | ||||||||||||
Depreciation, depletion, and amortization | 40,532 | 51,266 | — | 91,798 | ||||||||||||
Impairment of proved oil and natural gas properties | — | 251,347 | — | 251,347 | ||||||||||||
Incentive unit compensation expense | 10,224 | — | — | 10,224 | ||||||||||||
General and administrative | 12,976 | 14,511 | — | 27,487 | ||||||||||||
Accretion of asset retirement obligations | 123 | 1,634 | — | 1,757 | ||||||||||||
(Gain) loss on commodity derivative instruments | (108,190 | ) | (145,459 | ) | — | (253,649 | ) | |||||||||
Total costs and expenses | (20,849 | ) | 229,188 | — | 208,339 | |||||||||||
Operating income (loss) | 107,872 | (136,370 | ) | — | (28,498 | ) | ||||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (9,756 | ) | (28,818 | ) | — | (38,574 | ) | |||||||||
Earnings from equity investments | (138 | ) | — | 138 | — | |||||||||||
Other, net | (49 | ) | 160 | — | 111 | |||||||||||
Total other income (expense) | (9,943 | ) | (28,658 | ) | 138 | (38,463 | ) | |||||||||
Income (loss) before income taxes | 97,929 | (165,028 | ) | 138 | (66,961 | ) | ||||||||||
Income tax benefit (expense) | (47,558 | ) | 2,370 | — | (45,188 | ) | ||||||||||
Net income (loss) | $ | 50,371 | $ | (162,658 | ) | $ | 138 | $ | (112,149 | ) | ||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||
MRD | MEMP | Other, Adjustments & Eliminations | Consolidated & Combined Totals | |||||||||||||
Revenues: | ||||||||||||||||
Oil & natural gas sales | $ | 87,733 | $ | 115,977 | $ | — | $ | 203,710 | ||||||||
Other revenues | 3 | 908 | — | 911 | ||||||||||||
Total revenues | 87,736 | 116,885 | — | 204,621 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Lease operating | 3,235 | 30,120 | — | 33,355 | ||||||||||||
Gathering, processing, and transportation | 8,557 | 5,563 | 14,120 | |||||||||||||
Pipeline operating | — | 489 | — | 489 | ||||||||||||
Exploration | 140 | 6 | — | 146 | ||||||||||||
Production and ad valorem taxes | 2,573 | 6,011 | — | 8,584 | ||||||||||||
Depreciation, depletion, and amortization | 25,129 | 32,550 | — | 57,679 | ||||||||||||
Incentive unit compensation expense | 1,023 | — | — | 1,023 | ||||||||||||
General and administrative | 6,999 | 10,740 | — | 17,739 | ||||||||||||
Accretion of asset retirement obligations | 130 | 1,391 | — | 1,521 | ||||||||||||
(Gain) loss on commodity derivative instruments | 12,716 | 46,766 | — | 59,482 | ||||||||||||
(Gain) loss on sale of properties | (110 | ) | — | — | (110 | ) | ||||||||||
Other, net | — | (12 | ) | — | (12 | ) | ||||||||||
Total costs and expenses | 60,392 | 133,624 | — | 194,016 | ||||||||||||
Operating income (loss) | 27,344 | (16,739 | ) | — | 10,605 | |||||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (17,974 | ) | (16,078 | ) | — | (34,052 | ) | |||||||||
Earnings from equity investments | (2,986 | ) | — | 2,986 | — | |||||||||||
Other, net | 31 | — | — | 31 | ||||||||||||
Total other income (expense) | (20,929 | ) | (16,078 | ) | 2,986 | (34,021 | ) | |||||||||
Income (loss) before income taxes | 6,415 | (32,817 | ) | 2,986 | (23,416 | ) | ||||||||||
Income tax benefit (expense) | (25 | ) | (75 | ) | — | (100 | ) | |||||||||
Net income (loss) | $ | 6,390 | $ | (32,892 | ) | $ | 2,986 | $ | (23,516 | ) | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments And Contingencies Disclosure [Abstract] | ||||
Gross Held-to-Maturity Investments | The following is a summary of the gross held-to-maturity investments held in the trust account less the outside working interest owners share as of March 31, 2015 (in thousands): | |||
Amortized | ||||
Investment | Cost | |||
U.S. Bank Money Market Cash Equivalent | $ | 137,705 | ||
Less: Outside working interest owners share | (66,442 | ) | ||
$ | 71,263 | |||
Minimum Balances Attributable to Net Working Interest | The trust account must maintain minimum balances attributable to REO’s net working interest as follows (in thousands): | |||
30-Jun-15 | $ | 72,450 | ||
30-Jun-16 | $ | 76,590 | ||
31-Dec-16 | $ | 78,660 | ||
Background_Organization_and_Ba1
Background, Organization and Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended |
Mar. 31, 2015 | Feb. 28, 2015 | |
Segment | ||
Consolidation And Basis Of Presentation [Line Items] | ||
Number of reportable business segments | 2 | |
MEMP [Member] | ||
Consolidation And Basis Of Presentation [Line Items] | ||
Net payment made to affiliate for acquisition of oil and natural gas properties | $78,000,000 | |
Net equity deemed contribution (distribution) related to net assets transferred | 172,900,000 | |
Net book value of assets transferred to MEMP segment | 250,800,000 | |
Cash allocated to limited partners | $77,900,000 | |
Limited Partner [Member] | ||
Consolidation And Basis Of Presentation [Line Items] | ||
Partnership ownership percentage | 99.90% | |
General Partner [Member] | ||
Consolidation And Basis Of Presentation [Line Items] | ||
Partnership ownership percentage | 0.10% | |
MRD Operating [Member] | ||
Consolidation And Basis Of Presentation [Line Items] | ||
Ownership interest percentage | 100.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Schedule of Accrued Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Accrued capital expenditures | $84,939 | $80,350 |
Accrued lease operating expense | 17,996 | 16,403 |
Accrued general and administrative expenses | 10,098 | 8,516 |
Accrued ad valorem and production taxes | 10,390 | 8,870 |
Accrued interest payable | 36,815 | 24,797 |
Accrued environmental | 1,309 | 2,092 |
Accrued current deferred income taxes | 51,937 | 51,929 |
Other miscellaneous, including operator advances | 4,185 | 6,043 |
Accrued liabilities | $217,669 | $199,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Feb. 28, 2015 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Unrecognized tax benefits | $0 | ||
Effective tax rate | -67.50% | ||
Federal statutory income tax rate | 35.00% | ||
Percentage of reduction to effective tax rate related to pass-through entities | 84.00% | ||
Percentage of reduction to effective tax rate related to non-deductible incentive compensation | 10.60% | ||
Percentage of effective tax rate related to state income tax provision, net of federal benefit | 8.10% | ||
Deferred tax liabilities | 111,790,000 | 95,017,000 | |
Deferred income tax liabilities, net | 28,000,000 | ||
MEMP [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred tax liabilities | 29,200,000 | ||
Deferred income tax benefit | $1,200,000 |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures - Acquisition Related Costs (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Business Acquisition [Line Items] | ||
Acquisition related costs | $2,580 | $2,462 |
General and administrative expense [Member] | ||
Business Acquisition [Line Items] | ||
Acquisition related costs | $2,580 | $2,462 |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures - Additional Information (Detail) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Mar. 25, 2014 | Apr. 17, 2015 |
Eagle Ford Acquisition [Member] | ||
Business Acquisition And Divestiture [Line Items] | ||
Percentage of leasehold interest acquired | 30.00% | |
Subsequent Event [Member] | Rockies Divestiture [Member] | ||
Business Acquisition And Divestiture [Line Items] | ||
Proceeds from divestitures | $13.50 |
Acquisitions_and_Divestitures_3
Acquisitions and Divestitures - Unaudited Pro Forma Results of Operations (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Business Combinations [Abstract] | |
Revenues | $252,019 |
Net income (loss) | ($14,817) |
Fair_Value_Measurements_of_Fin2
Fair Value Measurements of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Fair value of derivative asset | $1,022,716 | $847,064 |
Liabilities: | ||
Fair value of derivative liability | 91,358 | 74,928 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Fair value of derivative asset | 1,022,716 | 847,064 |
Liabilities: | ||
Fair value of derivative liability | 91,358 | 74,928 |
Commodity derivatives [Member] | ||
Assets: | ||
Fair value of derivative asset | 1,022,706 | 845,759 |
Liabilities: | ||
Fair value of derivative liability | 87,809 | 71,639 |
Commodity derivatives [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Fair value of derivative asset | 1,022,706 | 845,759 |
Liabilities: | ||
Fair value of derivative liability | 87,809 | 71,639 |
Interest rate derivatives [Member] | ||
Assets: | ||
Fair value of derivative asset | 10 | 1,305 |
Liabilities: | ||
Fair value of derivative liability | 3,549 | 3,289 |
Interest rate derivatives [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Fair value of derivative asset | 10 | 1,305 |
Liabilities: | ||
Fair value of derivative liability | $3,549 | $3,289 |
Fair_Value_Measurements_of_Fin3
Fair Value Measurements of Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impairment of proved oil and natural gas properties | $251,347 | ||
Carrying value of properties after impairment charges | 3,366,600 | 3,537,656 | |
MEMP [Member] | East Texas, Wyoming and Colorado [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impairment of proved oil and natural gas properties | 251,300 | 0 | |
Carrying value of properties after impairment charges | $157,600 |
Risk_Management_and_Derivative2
Risk Management and Derivative Instruments - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended |
Feb. 28, 2015 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Conditional rights of set-off under ISDA Master Agreement reduce the maximum amount of loss due to credit risk | $81,800,000 | |
Effect netting arrangements, counterparty exposure | 248,700,000 | |
Net derivative asset | 330,500,000 | |
Deferred premiums | 1,800,000 | |
Cash collateral received or pledged | 0 | |
Single Counterparty [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect netting arrangements, counterparty exposure | 113,400,000 | |
MEMP [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Conditional rights of set-off under ISDA Master Agreement reduce the maximum amount of loss due to credit risk | 272,600,000 | |
Effect netting arrangements, counterparty exposure | 328,400,000 | |
Net derivative asset | 601,000,000 | |
Cash settlement receipt | 27,100,000 | |
MRD [Member] | Single Counterparty [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect netting arrangements, counterparty exposure | $66,600,000 |
Risk_Management_and_Derivative3
Risk Management and Derivative Instruments - Schedule of Open Commodity Positions (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
MMBTU | |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 3,600,000 |
Weighted-average fixed price | 4.15 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | Collar contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 130,000 |
Weighted-average floor price | 4 |
Weighted-average ceiling price | 4.64 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | Put Option [Member] | Purchased | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 3,366,667 |
Weighted-average fixed price | 3.75 |
Weighted-average deferred premium paid | -0.33 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | Call Option [Member] | Written | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 2,625,000 |
Weighted-average sold strike price | 3.75 |
Weighted-average deferred premium received | 0.08 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | TGT Z1 basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 3,480,000 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | TGT Z1 basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | -0.1 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 3,061,181 |
Weighted-average fixed price | 4.16 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | Collar contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 350,000 |
Weighted-average floor price | 4.62 |
Weighted-average ceiling price | 5.8 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | Call Spreads [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 80,000 |
Weighted-average sold strike price | 5.25 |
Weighted-average bought strike price | 6.75 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 3,390,000 |
Spread | -0.12 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | NGPL TexOk basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 2,730,000 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | NGPL TexOk basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | -0.12 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | HSC basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 150,000 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | HSC basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | -0.08 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | CIG basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 210,000 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | CIG basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | -0.25 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | TETCO STX basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 300,000 |
Remaining 2015 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | TETCO STX basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | -0.09 |
Remaining 2015 [Member] | Crude Oil Derivative Contracts [Member] | MRD [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 91.67 |
Average Monthly Volume (Bbls) | 45,000 |
Remaining 2015 [Member] | Crude Oil Derivative Contracts [Member] | MRD [Member] | Collar contracts [Member] | |
Derivative [Line Items] | |
Weighted-average floor price | 85 |
Weighted-average ceiling price | 101.35 |
Average Monthly Volume (Bbls) | 2,000 |
Remaining 2015 [Member] | Crude Oil Derivative Contracts [Member] | MRD [Member] | Put Option [Member] | Purchased | |
Derivative [Line Items] | |
Weighted-average fixed price | 85 |
Weighted-average deferred premium paid | -3.8 |
Average Monthly Volume (Bbls) | 30,333 |
Remaining 2015 [Member] | Crude Oil Derivative Contracts [Member] | MRD [Member] | Call Option [Member] | Written | |
Derivative [Line Items] | |
Weighted-average sold strike price | 85 |
Weighted-average deferred premium received | 0.48 |
Average Monthly Volume (Bbls) | 22,750 |
Remaining 2015 [Member] | Crude Oil Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 91.34 |
Average Monthly Volume (Bbls) | 273,864 |
Remaining 2015 [Member] | Crude Oil Derivative Contracts [Member] | MEMP [Member] | Collar contracts [Member] | |
Derivative [Line Items] | |
Weighted-average floor price | 80 |
Weighted-average ceiling price | 94 |
Average Monthly Volume (Bbls) | 5,000 |
Remaining 2015 [Member] | Crude Oil Derivative Contracts [Member] | MEMP [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Spread | -7.07 |
Average Monthly Volume (Bbls) | 97,333 |
Remaining 2015 [Member] | Crude Oil Derivative Contracts [Member] | MEMP [Member] | Midway-Sunset basis swaps [Member] | |
Derivative [Line Items] | |
Spread | -9.73 |
Average Monthly Volume (Bbls) | 57,333 |
Remaining 2015 [Member] | Crude Oil Derivative Contracts [Member] | MEMP [Member] | Midland Basis Swap [Member] | |
Derivative [Line Items] | |
Spread | -3.25 |
Average Monthly Volume (Bbls) | 40,000 |
Remaining 2015 [Member] | NGL Derivative Contracts [Member] | MRD [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 41.58 |
Average Monthly Volume (Bbls) | 155,000 |
Remaining 2015 [Member] | NGL Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 42.3 |
Average Monthly Volume (Bbls) | 211,867 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 2,570,000 |
Weighted-average fixed price | 4.09 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | Collar contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 1,100,000 |
Weighted-average floor price | 4 |
Weighted-average ceiling price | 4.71 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | Put Option [Member] | Purchased | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 4,100,000 |
Weighted-average fixed price | 3.75 |
Weighted-average deferred premium paid | -0.36 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | TGT Z1 basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 1,120,000 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | TGT Z1 basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | -0.1 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 3,292,442 |
Weighted-average fixed price | 4.22 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 3,108,333 |
Spread | -0.05 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | NGPL TexOk basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 2,703,333 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | NGPL TexOk basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | -0.07 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | HSC basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 135,000 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | HSC basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | 0.07 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | TETCO STX basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 270,000 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | TETCO STX basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | 0.06 |
2016 [Member] | Crude Oil Derivative Contracts [Member] | MRD [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 84.8 |
Average Monthly Volume (Bbls) | 8,500 |
2016 [Member] | Crude Oil Derivative Contracts [Member] | MRD [Member] | Collar contracts [Member] | |
Derivative [Line Items] | |
Weighted-average floor price | 80 |
Weighted-average ceiling price | 99.7 |
Average Monthly Volume (Bbls) | 27,000 |
2016 [Member] | Crude Oil Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 86.87 |
Average Monthly Volume (Bbls) | 279,813 |
2016 [Member] | Crude Oil Derivative Contracts [Member] | MEMP [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Spread | -9.56 |
Average Monthly Volume (Bbls) | 95,000 |
2016 [Member] | Crude Oil Derivative Contracts [Member] | MEMP [Member] | Midway-Sunset basis swaps [Member] | |
Derivative [Line Items] | |
Spread | -13.35 |
Average Monthly Volume (Bbls) | 55,000 |
2016 [Member] | Crude Oil Derivative Contracts [Member] | MEMP [Member] | Midland Basis Swap [Member] | |
Derivative [Line Items] | |
Spread | -4.34 |
Average Monthly Volume (Bbls) | 40,000 |
2016 [Member] | NGL Derivative Contracts [Member] | MRD [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 34.06 |
Average Monthly Volume (Bbls) | 185,658 |
2016 [Member] | NGL Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 40.36 |
Average Monthly Volume (Bbls) | 158,600 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 1,770,000 |
Weighted-average fixed price | 4.24 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | Collar contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 1,050,000 |
Weighted-average floor price | 4 |
Weighted-average ceiling price | 5.06 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | Put Option [Member] | Purchased | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 3,450,000 |
Weighted-average fixed price | 3.75 |
Weighted-average deferred premium paid | -0.35 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | TGT Z1 basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 200,000 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | TGT Z1 basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | -0.08 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 3,050,067 |
Weighted-average fixed price | 4.14 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 415,000 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | NGPL TexOk basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 300,000 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | NGPL TexOk basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | -0.05 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | HSC basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 115,000 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | HSC basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | 0.14 |
2017 [Member] | Crude Oil Derivative Contracts [Member] | MRD [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 84.7 |
Average Monthly Volume (Bbls) | 28,000 |
2017 [Member] | Crude Oil Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 84.7 |
Average Monthly Volume (Bbls) | 301,600 |
2017 [Member] | NGL Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 37.55 |
Average Monthly Volume (Bbls) | 43,300 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 4,600,000 |
Weighted-average fixed price | 4.06 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | MRD [Member] | Put Option [Member] | Purchased | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 2,850,000 |
Weighted-average fixed price | 3.75 |
Weighted-average deferred premium paid | -0.35 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 2,760,000 |
Weighted-average fixed price | 4.28 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 115,000 |
Spread | 0.15 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | HSC basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 115,000 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | HSC basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | 0.15 |
2018 [Member] | Crude Oil Derivative Contracts [Member] | MRD [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 84.5 |
Average Monthly Volume (Bbls) | 31,625 |
2018 [Member] | Crude Oil Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 83.74 |
Average Monthly Volume (Bbls) | 312,000 |
2019 [Member] | Natural Gas Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | 2,514,583 |
Weighted-average fixed price | 4.43 |
2019 [Member] | Crude Oil Derivative Contracts [Member] | MEMP [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 85.52 |
Average Monthly Volume (Bbls) | 160,000 |
Risk_Management_and_Derivative4
Risk Management and Derivative Instruments - Schedule of Entity's Interest Rate Swap Open Positions (Detail) (MEMP [Member], Interest rate swaps [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Remaining 2015 [Member] | |
Derivative [Line Items] | |
Average Monthly Notional | $386,111 |
Weighted-average fixed rate | 1.25% |
Floating rate | 1 Month LIBOR |
2016 [Member] | |
Derivative [Line Items] | |
Average Monthly Notional | 400,000 |
Weighted-average fixed rate | 0.94% |
Floating rate | 1 Month LIBOR |
2017 [Member] | |
Derivative [Line Items] | |
Average Monthly Notional | 400,000 |
Weighted-average fixed rate | 1.61% |
Floating rate | 1 Month LIBOR |
2018 [Member] | |
Derivative [Line Items] | |
Average Monthly Notional | $100,000 |
Weighted-average fixed rate | 1.95% |
Floating rate | 1 Month LIBOR |
Risk_Management_and_Derivative5
Risk Management and Derivative Instruments - Summary of Gross Fair Value and Net Recorded Fair Value of Derivative Instruments by Appropriate Balance Sheet Classification (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Net recorded fair value | $357,060 | $340,056 |
Asset Derivatives, Net recorded fair value | 578,153 | 435,369 |
Liability Derivatives, Net recorded fair value | 3,300 | 3,289 |
Liability Derivatives, Net recorded fair value | 555 | |
Short-term derivative instruments [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Gross fair value | 398,708 | 378,908 |
Asset Derivatives, Netting arrangements | -41,648 | -38,852 |
Asset Derivatives, Net recorded fair value | 357,060 | 340,056 |
Liability Derivatives, Gross fair value | 44,948 | 42,141 |
Liability Derivatives, Netting arrangements | -41,648 | -38,852 |
Liability Derivatives, Net recorded fair value | 3,300 | 3,289 |
Short-term derivative instruments [Member] | Commodity contracts [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Gross fair value | 398,708 | 378,908 |
Liability Derivatives, Gross fair value | 41,954 | 38,852 |
Short-term derivative instruments [Member] | Interest rate swaps [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Liability Derivatives, Gross fair value | 2,994 | 3,289 |
Long-term derivative instruments [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Gross fair value | 624,008 | 468,156 |
Asset Derivatives, Netting arrangements | -45,855 | -32,787 |
Asset Derivatives, Net recorded fair value | 578,153 | 435,369 |
Liability Derivatives, Gross fair value | 46,410 | 32,787 |
Liability Derivatives, Netting arrangements | -45,855 | -32,787 |
Liability Derivatives, Net recorded fair value | 555 | |
Long-term derivative instruments [Member] | Commodity contracts [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Gross fair value | 623,998 | 466,851 |
Liability Derivatives, Gross fair value | 45,855 | 32,787 |
Long-term derivative instruments [Member] | Interest rate swaps [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Gross fair value | 10 | 1,305 |
Liability Derivatives, Gross fair value | $555 |
Risk_Management_and_Derivative6
Risk Management and Derivative Instruments - Schedule of Gains and Losses Related to Derivative Instruments (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | ||
(Gain) loss on commodity derivative instruments | ($253,649) | $59,482 |
Interest expense, net | 38,574 | 34,052 |
Commodity contracts [Member] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | ||
(Gain) loss on commodity derivative instruments | -253,649 | 59,482 |
Interest rate derivatives [Member] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | ||
Interest expense, net | $2,441 | $511 |
Asset_Retirement_Obligations_S
Asset Retirement Obligations - Summary of Changes in Asset Retirement Obligations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligations at beginning of period | $122,531 | |
Liabilities added from acquisitions or drilling | 39 | |
Revisions | 149 | |
Accretion expense | 1,757 | 1,521 |
Asset retirement obligations at end of period | $124,476 |
Restricted_Investments_Restric
Restricted Investments - Restricted Investment Balance (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule Of Investments [Line Items] | ||
Restricted investments | $78,787 | $77,361 |
BOEM platform abandonment [Member] | ||
Schedule Of Investments [Line Items] | ||
Restricted investments | 71,263 | 69,954 |
BOEM lease bonds [Member] | ||
Schedule Of Investments [Line Items] | ||
Restricted investments | 794 | 794 |
SPBPC Collateral Contractual pipeline and surface facilities abandonment [Member] | ||
Schedule Of Investments [Line Items] | ||
Restricted investments | 2,818 | 2,701 |
SPBPC Collateral California State Lands Commission pipeline right-of-way bond [Member] | ||
Schedule Of Investments [Line Items] | ||
Restricted investments | 3,005 | 3,005 |
SPBPC Collateral City of Long Beach pipeline facility permit [Member] | ||
Schedule Of Investments [Line Items] | ||
Restricted investments | 500 | 500 |
SPBPC Collateral Federal pipeline right-of-way bond [Member] | ||
Schedule Of Investments [Line Items] | ||
Restricted investments | 307 | 307 |
SPBPC Collateral Port of Long Beach pipeline license [Member] | ||
Schedule Of Investments [Line Items] | ||
Restricted investments | $100 | $100 |
Long_Term_Debt_Consolidated_De
Long Term Debt - Consolidated Debt Obligations (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $2,498,045 | $2,378,413 | ||
MRD [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 744,000 | 783,000 | ||
MRD [Member] | 2.0 billion revolving credit facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility | 144,000 | 183,000 | ||
MRD [Member] | 5.875% Senior Unsecured Notes Due July 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 600,000 | [1] | 600,000 | [1] |
MEMP [Member] | ||||
Debt Instrument [Line Items] | ||||
Unamortized discounts | -15,945 | -16,587 | ||
Long-term debt | 1,754,045 | 1,595,413 | ||
MEMP [Member] | 2.0 billion revolving credit facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility | 573,000 | 412,000 | ||
MEMP [Member] | 7.625% senior unsecured notes, due May 2021 ("2021 Senior Notes") [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 700,000 | [2] | 700,000 | [2] |
MEMP [Member] | 6.875% Senior Unsecured Notes Due August 2022 ("2022 Senior Notes") [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $496,990 | [3] | $500,000 | [3] |
[1] | The estimated fair value of this fixed-rate debt was $564.0 million and $534.0 million at March 31, 2015 and December 31, 2014, respectively. The estimated fair value is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. | |||
[2] | The estimated fair value of this fixed-rate debt was $640.5 million and $563.5 million at March 31, 2015 and December 31, 2014, respectively. The estimated fair value is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. | |||
[3] | The estimated fair value of this fixed-rate debt was $437.4 million and $380.0 million at March 31, 2015 and December 31, 2014, respectively. The estimated fair value is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. |
Long_Term_Debt_Consolidated_De1
Long Term Debt - Consolidated Debt Obligations (Parenthetical) (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
MRD [Member] | 2.0 billion revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facilities | $2,000,000,000 | |
Maturity date | 18-Jun-19 | |
MRD [Member] | 5.875% Senior Unsecured Notes Due July 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | 1-Jul-22 | |
Debt interest rate | 5.88% | |
Estimated fair value of fixed rate debt | 564,000,000 | 534,000,000 |
MEMP [Member] | 2.0 billion revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facilities | 2,000,000,000 | |
Maturity date | 19-Mar-18 | |
MEMP [Member] | 7.625% senior unsecured notes, due May 2021 ("2021 Senior Notes") [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | 1-May-21 | |
Debt interest rate | 7.63% | |
Estimated fair value of fixed rate debt | 640,500,000 | 563,500,000 |
MEMP [Member] | 6.875% Senior Unsecured Notes Due August 2022 ("2022 Senior Notes") [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | 1-Aug-22 | |
Debt interest rate | 6.88% | |
Estimated fair value of fixed rate debt | $437,400,000 | $380,000,000 |
Long_Term_Debt_Borrowing_Base_
Long Term Debt - Borrowing Base Credit Facility (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
MRD [Member] | 2.0 Billion Revolving Credit Facility Due June 2019 [Member] | |
Line Of Credit Facility [Line Items] | |
Borrowing base | $725,000 |
MEMP [Member] | 2.0 Billion Revolving Credit Facility Due March 2018 [Member] | |
Line Of Credit Facility [Line Items] | |
Borrowing base | $1,300,000 |
Long_Term_Debt_Borrowing_Base_1
Long Term Debt - Borrowing Base Credit Facility (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 |
In Billions, unless otherwise specified | |
MRD [Member] | 2.0 Billion Revolving Credit Facility Due June 2019 [Member] | |
Line Of Credit Facility [Line Items] | |
Revolving credit facility | $2 |
MEMP [Member] | 2.0 Billion Revolving Credit Facility Due March 2018 [Member] | |
Line Of Credit Facility [Line Items] | |
Revolving credit facility | $2 |
Long_Term_Debt_MRD_Revolving_C
Long Term Debt - MRD Revolving Credit Facility - Additional Information (Detail) (Subsequent Event [Member], USD $) | Apr. 13, 2015 |
In Thousands, unless otherwise specified | |
Subsequent Event [Member] | |
Debt Instrument [Line Items] | |
Revolving credit facility borrowing base | $725,000 |
Long_Term_Debt_Summary_of_Weig
Long Term Debt - Summary of Weighted-Average Interest Rates Paid On Variable-Rate Debt Obligations (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
MRD [Member] | ||
Line Of Credit Facility [Line Items] | ||
Revolving credit facility, weighted-average interest rates | 1.87% | |
MRD [Member] | WildHorse Resources, LLC [Member] | ||
Line Of Credit Facility [Line Items] | ||
Revolving credit facility, weighted-average interest rates | 3.97% | |
MRD [Member] | WildHorse Resources second lien [Member] | ||
Line Of Credit Facility [Line Items] | ||
Revolving credit facility, weighted-average interest rates | 6.44% | |
MEMP [Member] | ||
Line Of Credit Facility [Line Items] | ||
Revolving credit facility, weighted-average interest rates | 1.90% | 1.66% |
Long_Term_Debt_Summary_of_Unam
Long Term Debt - Summary of Unamortized Deferred Financing Costs Associated with Consolidated Debt Obligations (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | $41,931 | $44,474 |
MRD [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | 4,060 | 4,285 |
MRD [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | 12,041 | 12,455 |
MEMP [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | 5,395 | 6,468 |
MEMP [Member] | 2021 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | 12,779 | 13,308 |
MEMP [Member] | 2022 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | $7,656 | $7,958 |
Stockholders_Equity_and_Noncon2
Stockholders' Equity and Noncontrolling Interests - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 16, 2015 | Dec. 31, 2014 | Apr. 30, 2015 | |
Stockholders Equity Note Disclosure [Line Items] | ||||
Common stock, shares authorized | 600,000,000 | 600,000,000 | ||
Common stock, par value | $0.01 | $0.01 | ||
Payments for repurchase of common stock | $47,785,000 | |||
Subsequent Event [Member] | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Stock repurchase program, authorized amount | 50,000,000 | |||
MRD [Member] | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Payments for repurchase of common stock | 47,800,000 | |||
Stock repurchased and retired during period, shares | 2,764,887 | |||
MEMP [Member] | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Payments for repurchase of common stock | 28,420,000 | |||
MEMP [Member] | Noncontrolling Interest [Member] | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Payments for repurchase of common stock | $28,420,000 | |||
Stock repurchased and retired during period, shares | 1,909,583 |
Stockholders_Equity_and_Noncon3
Stockholders' Equity and Noncontrolling Interests - Summary of Changes In Common Shares Issued (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||
Beginning Balance | 193,435,414 | |
Ending Balance | 190,776,618 | 193,435,414 |
Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares of common stock repurchased | -2,764,887 | |
Restricted common shares issued (Note 11) | 115,302 | |
Restricted common shares forfeited | -9,211 |
Earnings_per_Share_Summary_of_
Earnings per Share - Summary of Calculation of Earnings (Loss) Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Net income (loss) available to common stockholders | $45,615 | $0 |
Denominator: | ||
Weighted average common shares outstanding | 190,705 | |
Basic EPS | $0.24 | |
Diluted EPS | $0.24 |
Earnings_per_Share_Summary_of_1
Earnings per Share - Summary of Calculation of Earnings (Loss) Per Share (Parenthetical) (Detail) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Earnings Per Share [Abstract] | |
Incremental shares included in diluted EPS computation | 151,123 |
LongTerm_Incentive_Plans_Summa
Long-Term Incentive Plans - Summary of Information Regarding Restricted Common Unit Awards (Detail) (Restricted Stock [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted common shares outstanding, Number of Shares, Beginning Balance | 1,059,211 |
Granted, Number of Shares | 115,302 |
Forfeited, Number of Shares | -9,211 |
Restricted common shares outstanding, Number of Shares, Ending Balance | 1,165,302 |
Restricted common shares outstanding, Weighted-Average Grant Date Fair Value Per Shares, Beginning Balance | $19 |
Granted, Weighted-Average Grant Date Fair Value Per Shares | $18.05 |
Forfeited, Weighted-Average Grant Date Fair Value Per Shares | $19 |
Restricted common shares outstanding, Weighted-Average Grant Date Fair Value Per Shares, Ending Balance | $18.91 |
MEMP [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Granted, Number of Shares | 157,360 |
Forfeited, Number of Shares | -12,467 |
Restricted common shares outstanding, Weighted-Average Grant Date Fair Value Per Shares, Beginning Balance | $20.93 |
Granted, Weighted-Average Grant Date Fair Value Per Shares | $15.45 |
Forfeited, Weighted-Average Grant Date Fair Value Per Shares | $20.73 |
Restricted common shares outstanding, Weighted-Average Grant Date Fair Value Per Shares, Ending Balance | $20.31 |
Restricted common shares outstanding, Number of Units, Beginning Balance | 1,093,520 |
Vested, Number of Units | -78,307 |
Restricted common shares outstanding, Number of Units, Ending Balance | 1,160,106 |
Vested, Weighted-Average Grant Date Fair Value Per Unit | $19.16 |
LongTerm_Incentive_Plans_Summa1
Long-Term Incentive Plans - Summary of Information Regarding Restricted Common Unit Awards (Parenthetical) (Detail) (Restricted Stock [Member], USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate grant date fair value | $2.10 |
Granted, Weighted-Average Grant Date Fair Value Per Shares | $18.05 |
MEMP [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate grant date fair value | $2.40 |
Granted, Weighted-Average Grant Date Fair Value Per Shares | $15.45 |
LongTerm_Incentive_Plans_Summa2
Long-Term Incentive Plans - Summary of Amount of Compensation Expense Recognized (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Amortization of equity awards | $14,051 | $2,318 |
MEMP [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Amortization of equity awards | 2,341 | 1,295 |
Restricted Stock [Member] | MRD [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Amortization of equity awards | $1,486 |
LongTerm_Incentive_Plans_Addit
Long-Term Incentive Plans - Additional Information (Detail) (Restricted Stock [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation cost | $17.70 |
Unrecognized compensation cost weighted-average period | 3 years 1 month 17 days |
MEMP [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation cost | $16.30 |
Unrecognized compensation cost weighted-average period | 1 year 11 months 27 days |
Incentive_Units_Additional_Inf
Incentive Units - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Compensation expense | $14,051,000 | $2,318,000 |
MRD Holdco LLC [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
The number of incentive units authorized by governing documents | 1,000 | |
MRD Holdco LLC [Member] | Exchanged Incentive Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Incentive units granted in an exchange for cancelled predecessor awards | 930 | |
Compensation expense | 10,200,000 | |
Unrecognized compensation expense | $95,500,000 | |
Remaining expected life | 2 years 2 months 1 day | |
MRD Holdco LLC [Member] | Subsequent Incentive Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Subsequent incentive units | 70 |
Incentive_Units_Fair_Value_of_
Incentive Units - Fair Value of Incentive Units Estimated (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Exchanged Incentive Units [Member] | |
Schedule Of Share Based Compensation Valuation Assumptions [Line Items] | |
Valuation date | 30-Mar-15 |
Dividend yield | 0.00% |
Expected volatility | 27.90% |
Risk-free rate | 0.61% |
Expected life (years) | 2 years 2 months 1 day |
Subsequent Incentive Units [Member] | |
Schedule Of Share Based Compensation Valuation Assumptions [Line Items] | |
Valuation date | 31-Mar-15 |
Dividend yield | 0.00% |
Expected volatility | 27.90% |
Risk-free rate | 0.61% |
Expected life (years) | 2 years 2 months 1 day |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | 31-May-14 | Nov. 30, 2011 | Mar. 31, 2015 | Mar. 28, 2014 | Mar. 10, 2014 | Apr. 14, 2015 | Feb. 28, 2014 |
Related Party Transaction [Line Items] | |||||||
Commodity usage charge | 0.04 | ||||||
Natural gas produced per day | 50,000 | ||||||
Fee per MMBTU | 0.3 | ||||||
Annual inflationary escalation | 3.50% | ||||||
Price per unit | 0.07 | ||||||
Through November 30, 2019 | |||||||
Related Party Transaction [Line Items] | |||||||
Monthly gas demand quantity | 460,000 | ||||||
Payback demand fee | 0.03 | ||||||
July 1, 2016 | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Minimum gas volume commitment | 460,000 | ||||||
Through June 30, 2026 | |||||||
Related Party Transaction [Line Items] | |||||||
Commodity usage charge | 0.05 | ||||||
Through June 30, 2026 | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Minimum gas volume commitment | 460,000 | ||||||
June 30, 2026, and thereafter | |||||||
Related Party Transaction [Line Items] | |||||||
Commodity usage charge | 0.05 | ||||||
June 30, 2026, and thereafter | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Minimum gas volume commitment | 345,000 | ||||||
First Plant [Member] | Until Second Processing Plant Operational | |||||||
Related Party Transaction [Line Items] | |||||||
Commodity usage charge | 0.02 | ||||||
First Plant [Member] | Until Second Processing Plant Operational | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Minimum gas volume commitment | 115,000 | ||||||
Second Plant [Member] | Through November 30, 2019 | |||||||
Related Party Transaction [Line Items] | |||||||
Commodity usage charge | 0.02 | ||||||
Second Plant [Member] | Through November 30, 2019 | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Minimum gas volume commitment | 345,000 | ||||||
Natural Gas Partners [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Cash received | $3.30 | ||||||
NGPCIF [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Business acquisition common control purchase price | 63.4 | ||||||
Date of acquisition common control | 28-Feb-14 | ||||||
Cretic Energy Services, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Drilling and completion expenses | 0.6 | ||||||
BlueStone Natural Resources Holdings, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Total cash consideration | 1.2 | ||||||
Amount of gain over the book value | 0.5 | ||||||
Gain recognized as contribution | 0.5 | ||||||
WHR Management Company [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee per month | 1 | ||||||
WildHorse Resources, LLC [Member] | Subsequent Event [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Primary term of gas processing agreement | 15 years | ||||||
WildHorse Resources, LLC [Member] | First Plant [Member] | Subsequent Event [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Minimum annual processing fee | 18.3 | ||||||
WildHorse Resources, LLC [Member] | Second Plant [Member] | Subsequent Event [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Minimum annual processing fee | 55 | ||||||
Classic [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Water disposal agreement period | 3 years | ||||||
Water disposal fee per barrel | 1.1 |
Related_Party_Transactions_Sch
Related Party Transactions - Schedule of Net Assets Recorded (Detail) (NGPCIF [Member], USD $) | Feb. 28, 2014 |
In Thousands, unless otherwise specified | |
NGPCIF [Member] | |
Related Party Transaction [Line Items] | |
Accounts receivable | $2,274 |
Oil and natural gas properties, net | 40,056 |
Accrued liabilities | -297 |
Asset retirement obligations | -277 |
Net assets | $41,756 |
Business_Segment_Data_Addition
Business Segment Data - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 2 |
Business_Segment_Data_Summary_
Business Segment Data - Summary of Selected Business Segment Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Total revenues | $179,841 | $204,621 | |
Adjusted EBITDA | 173,186 | 123,796 | |
Segment assets | 4,574,222 | 4,593,547 | |
Total cash expenditures for additions to long-lived assets | 166,246 | 307,231 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 173,262 | 126,798 | |
Operating Segments [Member] | MRD [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 87,023 | 87,736 | |
Adjusted EBITDA | 86,830 | 64,752 | |
Segment assets | 1,535,233 | 1,413,768 | |
Total cash expenditures for additions to long-lived assets | 88,566 | 75,258 | |
Operating Segments [Member] | MEMP [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 92,818 | 116,885 | |
Adjusted EBITDA | 86,432 | 62,046 | |
Segment assets | 3,051,190 | 3,189,760 | |
Total cash expenditures for additions to long-lived assets | 77,680 | 231,973 | |
Other, Adjustments & Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | -76 | -3,002 | |
Segment assets | ($12,201) | ($9,981) |
Business_Segment_Data_Summary_1
Business Segment Data - Summary of Selected Business Segment Information (Parenthetical) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Cash distributions from MEMP | $76 | $3,002 |
Other, Adjustments & Eliminations [Member] | MEMP [Member] | ||
Segment Reporting Information [Line Items] | ||
Cash distributions from MEMP | $100 | $3,000 |
Business_Segment_Data_Schedule
Business Segment Data - Schedule of Calculation of Reportable Segment's Adjusted EBITDA (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Net income (loss) | ($112,149) | ($23,516) |
Interest expense, net | 38,574 | 34,052 |
Income tax expense (benefit) | 45,188 | 100 |
DD&A | 91,798 | 57,679 |
Impairment of proved oil and natural gas properties | 251,347 | |
Accretion of AROs | 1,757 | 1,521 |
(Gain) loss on commodity derivative instruments | -253,649 | 59,482 |
Cash settlements received (paid) on expired commodity derivative instruments | 92,873 | -13,190 |
(Gain) loss on sale of properties | -110 | |
Transaction related costs | 2,580 | 2,462 |
Compensation expense | 14,051 | 2,318 |
Exploration costs | 816 | 146 |
Provision for environmental remediation | 2,852 | |
Cash distributions from MEMP | 76 | 3,002 |
Adjusted EBITDA | 173,186 | 123,796 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net income (loss) | -112,287 | -26,502 |
Interest expense, net | 38,574 | 34,052 |
Income tax expense (benefit) | 45,188 | 100 |
DD&A | 91,798 | 57,679 |
Impairment of proved oil and natural gas properties | 251,347 | |
Accretion of AROs | 1,757 | 1,521 |
(Gain) loss on commodity derivative instruments | -253,649 | 59,482 |
Cash settlements received (paid) on expired commodity derivative instruments | 92,873 | -13,190 |
(Gain) loss on sale of properties | -110 | |
Transaction related costs | 2,580 | 2,462 |
Compensation expense | 14,051 | 2,318 |
Exploration costs | 816 | 146 |
Provision for environmental remediation | 2,852 | |
Non-cash equity (income) loss from MEMP | 138 | 2,986 |
Cash distributions from MEMP | 76 | 3,002 |
Adjusted EBITDA | 173,262 | 126,798 |
Operating Segments [Member] | MRD [Member] | ||
Segment Reporting Information [Line Items] | ||
Net income (loss) | 50,371 | 6,390 |
Interest expense, net | 9,756 | 17,974 |
Income tax expense (benefit) | 47,558 | 25 |
DD&A | 40,532 | 25,129 |
Accretion of AROs | 123 | 130 |
(Gain) loss on commodity derivative instruments | -108,190 | 12,716 |
Cash settlements received (paid) on expired commodity derivative instruments | 32,749 | -5,221 |
(Gain) loss on sale of properties | -110 | |
Transaction related costs | 1,281 | 568 |
Compensation expense | 11,710 | 1,023 |
Exploration costs | 726 | 140 |
Non-cash equity (income) loss from MEMP | 138 | 2,986 |
Cash distributions from MEMP | 76 | 3,002 |
Adjusted EBITDA | 86,830 | 64,752 |
Operating Segments [Member] | MEMP [Member] | ||
Segment Reporting Information [Line Items] | ||
Net income (loss) | -162,658 | -32,892 |
Interest expense, net | 28,818 | 16,078 |
Income tax expense (benefit) | -2,370 | 75 |
DD&A | 51,266 | 32,550 |
Impairment of proved oil and natural gas properties | 251,347 | |
Accretion of AROs | 1,634 | 1,391 |
(Gain) loss on commodity derivative instruments | -145,459 | 46,766 |
Cash settlements received (paid) on expired commodity derivative instruments | 60,124 | -7,969 |
Transaction related costs | 1,299 | 1,894 |
Compensation expense | 2,341 | 1,295 |
Exploration costs | 90 | 6 |
Provision for environmental remediation | 2,852 | |
Adjusted EBITDA | $86,432 | $62,046 |
Business_Segment_Data_Reconcil
Business Segment Data - Reconciliation of Total Reportable Segment's Adjusted EBITDA to Net Income (Loss) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total Reportable Segments' Adjusted EBITDA | $173,186 | $123,796 |
Adjustments to reconcile Adjusted EBITDA to net income (loss): | ||
Interest expense, net | -38,574 | -34,052 |
Income tax benefit (expense) | -45,188 | -100 |
DD&A | -91,798 | -57,679 |
Impairment of proved oil and natural gas properties | -251,347 | |
Accretion of AROs | -1,757 | -1,521 |
Gains (losses) on commodity derivative instruments | 253,649 | -59,482 |
Cash settlements paid (received) on expired commodity derivative instruments | -92,873 | 13,190 |
Gain (loss) on sale of properties | 110 | |
Transaction related costs | -2,580 | -2,462 |
Incentive-based compensation expense | -14,051 | -2,318 |
Exploration costs | -816 | -146 |
Provision for environmental remediation | -2,852 | |
Cash distributions from MEMP | -76 | -3,002 |
Net income (loss) | -112,149 | -23,516 |
Reportable Segments [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total Reportable Segments' Adjusted EBITDA | $173,262 | $126,798 |
Business_Segment_Data_Schedule1
Business Segment Data - Schedule of Consolidated and Combined Statement of Operations Disaggregated by Reportable Segment (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Oil & natural gas sales | $178,972 | $203,710 |
Other revenues | 869 | 911 |
Total revenues | 179,841 | 204,621 |
Costs and expenses: | ||
Lease operating | 45,700 | 33,355 |
Gathering, processing, and transportation | 22,983 | 14,120 |
Pipeline operating | 446 | 489 |
Exploration | 816 | 146 |
Production and ad valorem taxes | 9,430 | 8,584 |
Depreciation, depletion, and amortization | 91,798 | 57,679 |
Impairment of proved oil and natural gas properties | 251,347 | |
Incentive unit compensation expense | 10,224 | 1,023 |
General and administrative | 27,487 | 17,739 |
Accretion of asset retirement obligations | 1,757 | 1,521 |
(Gain) loss on commodity derivative instruments | -253,649 | 59,482 |
(Gain) loss on sale of properties | -110 | |
Other, net | -12 | |
Total costs and expenses | 208,339 | 194,016 |
Operating income (loss) | -28,498 | 10,605 |
Other income (expense): | ||
Interest expense, net | -38,574 | -34,052 |
Other, net | 111 | 31 |
Total other income (expense) | -38,463 | -34,021 |
Income (loss) before income taxes | -66,961 | -23,416 |
Income tax benefit (expense) | -45,188 | -100 |
Net income (loss) | -112,149 | -23,516 |
Operating Segments [Member] | ||
Costs and expenses: | ||
Exploration | 816 | 146 |
Depreciation, depletion, and amortization | 91,798 | 57,679 |
Impairment of proved oil and natural gas properties | 251,347 | |
Accretion of asset retirement obligations | 1,757 | 1,521 |
(Gain) loss on commodity derivative instruments | -253,649 | 59,482 |
(Gain) loss on sale of properties | -110 | |
Other income (expense): | ||
Interest expense, net | -38,574 | -34,052 |
Income tax benefit (expense) | -45,188 | -100 |
Other, Adjustments & Eliminations [Member] | ||
Other income (expense): | ||
Earnings from equity investments | 138 | 2,986 |
Total other income (expense) | 138 | 2,986 |
Income (loss) before income taxes | 138 | 2,986 |
Net income (loss) | 138 | 2,986 |
MRD [Member] | Operating Segments [Member] | ||
Revenues: | ||
Oil & natural gas sales | 87,023 | 87,733 |
Other revenues | 3 | |
Total revenues | 87,023 | 87,736 |
Costs and expenses: | ||
Lease operating | 5,222 | 3,235 |
Gathering, processing, and transportation | 14,763 | 8,557 |
Exploration | 726 | 140 |
Production and ad valorem taxes | 2,775 | 2,573 |
Depreciation, depletion, and amortization | 40,532 | 25,129 |
Incentive unit compensation expense | 10,224 | 1,023 |
General and administrative | 12,976 | 6,999 |
Accretion of asset retirement obligations | 123 | 130 |
(Gain) loss on commodity derivative instruments | -108,190 | 12,716 |
(Gain) loss on sale of properties | -110 | |
Total costs and expenses | -20,849 | 60,392 |
Operating income (loss) | 107,872 | 27,344 |
Other income (expense): | ||
Interest expense, net | -9,756 | -17,974 |
Earnings from equity investments | -138 | -2,986 |
Other, net | -49 | 31 |
Total other income (expense) | -9,943 | -20,929 |
Income (loss) before income taxes | 97,929 | 6,415 |
Income tax benefit (expense) | -47,558 | -25 |
Net income (loss) | 50,371 | 6,390 |
MEMP [Member] | Operating Segments [Member] | ||
Revenues: | ||
Oil & natural gas sales | 91,949 | 115,977 |
Other revenues | 869 | 908 |
Total revenues | 92,818 | 116,885 |
Costs and expenses: | ||
Lease operating | 40,478 | 30,120 |
Gathering, processing, and transportation | 8,220 | 5,563 |
Pipeline operating | 446 | 489 |
Exploration | 90 | 6 |
Production and ad valorem taxes | 6,655 | 6,011 |
Depreciation, depletion, and amortization | 51,266 | 32,550 |
Impairment of proved oil and natural gas properties | 251,347 | |
General and administrative | 14,511 | 10,740 |
Accretion of asset retirement obligations | 1,634 | 1,391 |
(Gain) loss on commodity derivative instruments | -145,459 | 46,766 |
Other, net | -12 | |
Total costs and expenses | 229,188 | 133,624 |
Operating income (loss) | -136,370 | -16,739 |
Other income (expense): | ||
Interest expense, net | -28,818 | -16,078 |
Other, net | 160 | |
Total other income (expense) | -28,658 | -16,078 |
Income (loss) before income taxes | -165,028 | -32,817 |
Income tax benefit (expense) | 2,370 | -75 |
Net income (loss) | ($162,658) | ($32,892) |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Commitments And Contingencies (Additional Textual) [Abstract] | ||
Environmental reserves liability | $1.30 | $2.10 |
Maximum remaining obligation | $7.40 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Gross Held-to-Maturity Investments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Held-to-maturity Securities [Abstract] | ||
Less: Outside working interest owners share, Amortized Cost | ($66,442) | |
Restricted investments | 78,787 | 77,361 |
BOEM platform abandonment [Member] | ||
Held-to-maturity Securities [Abstract] | ||
Restricted investments | 71,263 | 69,954 |
Money Market Funds [Member] | ||
Held-to-maturity Securities [Abstract] | ||
Amortized Cost | $137,705 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Minimum Balances Attributable to Net Working Interest (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
June 30, 2015 [Member] | |
Asset retirement obligations | |
Minimum balances attributable to net working interest | $72,450 |
June 30, 2016 [Member] | |
Asset retirement obligations | |
Minimum balances attributable to net working interest | 76,590 |
December 31, 2016 [Member] | |
Asset retirement obligations | |
Minimum balances attributable to net working interest | $78,660 |