Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MRD | |
Entity Registrant Name | MEMORIAL RESOURCE DEVELOPMENT CORP. | |
Entity Central Index Key | 1,599,222 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 206,360,992 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents (including VIEs $836 and $599, respectively) | $ 2,075 | $ 2,175 |
Accounts receivable (including VIEs $45,290 and $60,239, respectively) | 112,724 | 114,095 |
Short-term derivative instruments (including VIEs $259,854 and $272,320, respectively) | 472,956 | 500,311 |
Other financial instruments (Note 5) | 35,358 | 46,106 |
Prepaid expenses and other current assets (including VIEs $4,839 and $7,028, respectively) | 11,443 | 13,017 |
Total current assets | 634,556 | 675,704 |
Property and equipment, at cost: | ||
Oil and natural gas properties, successful efforts method (including VIEs $3,845,982 and $3,822,201, respectively) (Note 2) | 6,181,292 | 5,982,209 |
Other (including VIEs $2,491 and $2,671, respectively) | 26,837 | 26,826 |
Accumulated depreciation, depletion and impairment (including VIEs $(1,931,091) and $(1,878,549), respectively) | (2,430,065) | (2,317,651) |
Property and equipment, net | 3,778,064 | 3,691,384 |
Long-term derivative instruments (including VIEs $442,616 and $461,810, respectively) | 517,045 | 553,101 |
Restricted investments (including VIEs $154,766 and $152,631, respectively) | 154,766 | 152,631 |
Other long-term assets (including VIEs $4,519 and $5,053, respectively) | 12,482 | 10,029 |
Total assets | 5,096,913 | 5,082,849 |
Current liabilities: | ||
Accounts payable (including VIEs $6,863 and $8,792, respectively) | 27,711 | 33,849 |
Accounts payable - affiliates (including VIEs $0 and $193, respectively) | 9,443 | 5,209 |
Revenues payable (including VIEs $25,427 and $25,504, respectively) | 58,572 | 61,047 |
Accrued liabilities (including VIEs $61,744 and $52,923, respectively) (Note 2) | 133,998 | 121,799 |
Short-term derivative instruments (including VIEs $2,098 and $2,850, respectively) | 2,098 | 2,850 |
Total current liabilities | 231,822 | 224,754 |
Noncurrent liabilities: | ||
Long-term debt | 3,071,467 | 3,012,643 |
Asset retirement obligations (including VIEs $164,964 and $162,989, respectively) | 175,495 | 173,068 |
Long-term derivative instruments (including VIEs $2,161 and $1,441, respectively) | 2,161 | 1,441 |
Deferred tax liabilities (including VIEs $2,158 and $2,094, respectively) | 198,320 | 195,827 |
Other long-term liabilities | 6,689 | 7,195 |
Total liabilities | $ 3,685,954 | $ 3,614,928 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity: | ||
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; 205,291,293 shares issued and outstanding at March 31, 2016; 205,293,743 shares issued and outstanding at December 31, 2015 | $ 2,053 | $ 2,053 |
Additional paid-in capital | 1,542,340 | 1,560,949 |
Accumulated earnings (deficit) | (734,769) | (740,175) |
Total stockholders' equity | 809,624 | 822,827 |
Noncontrolling interests | 601,335 | 645,094 |
Total equity | 1,410,959 | 1,467,921 |
Total liabilities and equity | 5,096,913 | 5,082,849 |
MRD Segment [Member] | ||
Noncurrent liabilities: | ||
Long-term debt | 1,113,483 | 1,012,064 |
MEMP [Member] | ||
Noncurrent liabilities: | ||
Long-term debt | $ 1,957,984 | $ 2,000,579 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | $ 2,075 | $ 2,175 |
Accounts receivable | 112,724 | 114,095 |
Short-term derivative instruments | 472,956 | 500,311 |
Prepaid expenses and other current assets | 11,443 | 13,017 |
Oil and natural gas properties, successful efforts method | 6,181,292 | 5,982,209 |
Other | 26,837 | 26,826 |
Accumulated depreciation, depletion and impairment | (2,430,065) | (2,317,651) |
Long-term derivative instruments | 517,045 | 553,101 |
Restricted investments | 154,766 | 152,631 |
Other long-term assets | 12,482 | 10,029 |
Accounts payable | 27,711 | 33,849 |
Accounts payable - affiliates | 9,443 | 5,209 |
Revenues payable | 58,572 | 61,047 |
Accrued liabilities | 133,998 | 121,799 |
Short-term derivative instruments | 2,098 | 2,850 |
Asset retirement obligations | 175,495 | 173,068 |
Long-term derivative instruments | 2,161 | 1,441 |
Deferred tax liabilities | $ 198,320 | $ 195,827 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 205,291,293 | 205,293,743 |
Common stock, shares outstanding | 205,291,293 | 205,293,743 |
VIEs [Member] | ||
Cash and cash equivalents | $ 836 | $ 599 |
Accounts receivable | 45,290 | 60,239 |
Short-term derivative instruments | 259,854 | 272,320 |
Prepaid expenses and other current assets | 4,839 | 7,028 |
Oil and natural gas properties, successful efforts method | 3,845,982 | 3,822,201 |
Other | 2,491 | 2,671 |
Accumulated depreciation, depletion and impairment | (1,931,091) | (1,878,549) |
Long-term derivative instruments | 442,616 | 461,810 |
Restricted investments | 154,766 | 152,631 |
Other long-term assets | 4,519 | 5,053 |
Accounts payable | 6,863 | 8,792 |
Accounts payable - affiliates | 0 | 193 |
Revenues payable | 25,427 | 25,504 |
Accrued liabilities | 61,744 | 52,923 |
Short-term derivative instruments | 2,098 | 2,850 |
Asset retirement obligations | 164,964 | 162,989 |
Long-term derivative instruments | 2,161 | 1,441 |
Deferred tax liabilities | $ 2,158 | $ 2,094 |
UNAUDITED CONDENSED STATEMENTS
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Revenues: | |||
Oil & natural gas sales | $ 141,701 | $ 178,972 | |
Other revenues | 243 | 869 | |
Total revenues | 141,944 | 179,841 | |
Costs and expenses: | |||
Lease operating | 42,410 | 45,700 | |
Gathering, processing, and transportation | 31,150 | 23,429 | |
Gathering, processing, and transportation - affiliate (Note 12) | 14,187 | 0 | |
Exploration | 2,568 | 816 | |
Taxes other than income | 6,872 | 9,430 | |
Depreciation, depletion, and amortization | 104,228 | 91,798 | |
Impairment of proved oil and natural gas properties | 8,342 | 251,347 | |
Incentive unit compensation expense (benefit) (Note 11) | (21,761) | 10,224 | |
General and administrative | 24,657 | 27,487 | |
Accretion of asset retirement obligations | 2,847 | 1,757 | |
(Gain) loss on commodity derivative instruments | (88,187) | (253,649) | |
(Gain) loss on sale of properties | (46) | 0 | |
Other, net | 119 | 0 | |
Total costs and expenses | 127,386 | 208,339 | |
Operating income (loss) | 14,558 | (28,498) | |
Other income (expense): | |||
Interest expense, net | (43,909) | (38,574) | |
Other, net | 4 | 111 | |
Total other income (expense) | (43,905) | (38,463) | |
Income (loss) before income taxes | (29,347) | (66,961) | |
Income tax benefit (expense) | (3,033) | (45,188) | |
Net income (loss) | (32,380) | (112,149) | |
Net income (loss) attributable to noncontrolling interest | (38,057) | (158,041) | |
Net income (loss) attributable to Memorial Resource Development Corp. | 5,677 | 45,892 | |
Net (income) allocated to participating restricted stockholders | (45) | (277) | |
Net income (loss) available to common stockholders | $ 5,632 | $ 45,615 | |
Earnings per common share: (Note 9) | |||
Basic | $ 0.03 | $ 0.24 | |
Diluted | [1] | $ 0.03 | $ 0.24 |
Weighted average common and common equivalent shares outstanding: | |||
Basic | 203,665 | 190,705 | |
Diluted | 203,665 | 190,705 | |
[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 each period presented. For the three months ended March 31, 2016, there were approximately 32,000 shares excluded from the computation of diluted EPS under the treasury stock method because the inclusion of such shares would have been anti-dilutive. |
UNAUDITED CONDENSED STATEMENTS5
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (32,380) | $ (112,149) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion, and amortization | 104,228 | 91,798 |
Impairment of proved oil and natural gas properties | 8,342 | 251,347 |
(Gain) loss on derivatives | (84,505) | (251,208) |
Cash settlements (paid) received on expired derivative instruments | 147,885 | 91,985 |
Cash settlements on terminated derivatives | 0 | 27,063 |
Premiums paid for derivatives | 0 | (27,063) |
Amortization of deferred financing costs | 1,981 | 2,515 |
Accretion of senior notes net discount | 605 | 599 |
Accretion of asset retirement obligations | 2,847 | 1,757 |
Amortization of equity and liability classified awards | 5,720 | 3,827 |
Settlement of asset retirement obligations | (615) | 0 |
(Gain) loss on sale of properties | (46) | 0 |
Non-cash compensation expense | (21,761) | 10,224 |
Deferred income tax expense (benefit) | 2,571 | 43,188 |
Exploration costs | 124 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,733 | 13,719 |
Prepaid expenses and other assets | (1,884) | (561) |
Payables and accrued liabilities | (5,131) | 25,875 |
Other | (461) | (1,100) |
Net cash provided by operating activities | 133,253 | 171,816 |
Cash flows from investing activities: | ||
Acquisitions of oil and natural gas properties | 0 | (3,305) |
Additions to oil and gas properties | (186,182) | (160,994) |
Additions to other property and equipment | (289) | (1,947) |
Additions to restricted investments | (2,136) | (1,426) |
Other financial instruments | 6,415 | 0 |
Proceeds from the sale of oil and natural gas properties | 325 | 0 |
Other | 77 | 0 |
Net cash used in investing activities | (181,790) | (167,672) |
Cash flows from financing activities: | ||
Advances on revolving credit facilities | 175,000 | 270,000 |
Payments on revolving credit facilities | (118,000) | (148,000) |
Repurchase of MEMP senior notes | 0 | (2,914) |
Deferred financing costs | (39) | (10) |
Contributions from NGP affiliates related to sale of assets | 26 | |
Distributions to noncontrolling interests | (8,295) | (46,239) |
Equity repurchases | (255) | |
Other | 0 | (7) |
Net cash provided by (used in) financing activities | 48,437 | (5,590) |
Net change in cash and cash equivalents | (100) | (1,446) |
Cash and cash equivalents, beginning of period | 2,175 | 5,958 |
Cash and cash equivalents, end of period | 2,075 | 4,512 |
Natural Gas Partners [Member] | ||
Cash flows from financing activities: | ||
Contributions from NGP affiliates related to sale of assets | 26 | 0 |
MEMP [Member] | ||
Cash flows from financing activities: | ||
Repurchase of MEMP senior notes | 0 | (2,914) |
Equity repurchases | (30) | (28,420) |
MRD Segment [Member] | ||
Cash flows from financing activities: | ||
Equity repurchases | $ (225) | $ (50,000) |
UNAUDITED CONDENSED STATEMENTS6
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED AND COMBINED EQUITY - USD ($) $ in Thousands | Total | MRD Segment [Member] | MEMP [Member] | Common Stock [Member] | Common Stock [Member]MRD Segment [Member] | Common Stock [Member]MEMP [Member] | Additional paid in capital [Member] | Additional paid in capital [Member]MRD Segment [Member] | Additional paid in capital [Member]MEMP [Member] | Accumulated earnings (deficit) [Member] | Accumulated earnings (deficit) [Member]MRD Segment [Member] | Accumulated earnings (deficit) [Member]MEMP [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member]MRD Segment [Member] | Noncontrolling Interest [Member]MEMP [Member] |
Total equity, beginning balance at Dec. 31, 2014 | $ 1,702,964 | $ 1,935 | $ 1,367,346 | $ (786,871) | |||||||||||
Noncontrolling interests, beginning balance at Dec. 31, 2014 | $ 1,120,554 | ||||||||||||||
Net income (loss) | (112,149) | 0 | 0 | 45,892 | (158,041) | ||||||||||
Share repurchase | (47,785) | $ (28,420) | (28) | $ 0 | 0 | $ 0 | (47,757) | $ 0 | 0 | $ (28,420) | |||||
Restricted stock awards | 0 | 1 | (1) | 0 | 0 | ||||||||||
Amortization of restricted stock awards | 1,486 | 0 | 1,486 | 0 | 0 | ||||||||||
Contribution (distribution) related to MRD Holdco incentive units compensation expense (Note 11) | 10,224 | 0 | 10,224 | 0 | 0 | ||||||||||
Net equity deemed contribution (distribution) related to MEMP property exchange (Note 1) | 0 | 0 | (172,869) | 0 | 172,869 | ||||||||||
Deferred tax effect of MEMP property exchange (Note 15) | 28,020 | 0 | 28,020 | 0 | 0 | ||||||||||
Distributions | (46,239) | 0 | 0 | 0 | (46,239) | ||||||||||
Equity repurchases | (7) | 0 | 0 | 0 | (7) | ||||||||||
Amortization of MEMP equity awards | 2,341 | 0 | 0 | 0 | 2,341 | ||||||||||
Other | (14) | 0 | (12) | 0 | (2) | ||||||||||
Total equity, ending balance at Mar. 31, 2015 | 1,510,421 | 1,908 | 1,234,194 | (788,736) | |||||||||||
Noncontrolling interests, ending balance at Mar. 31, 2015 | 1,063,055 | ||||||||||||||
Total equity, beginning balance at Dec. 31, 2015 | 1,467,921 | 2,053 | 1,560,949 | (740,175) | |||||||||||
Noncontrolling interests, beginning balance at Dec. 31, 2015 | 645,094 | 645,094 | |||||||||||||
Total stockholders equity, beginning balance at Dec. 31, 2015 | 822,827 | ||||||||||||||
Net income (loss) | (32,380) | 0 | 0 | 5,677 | (38,057) | ||||||||||
Amortization of restricted stock awards | 3,152 | 0 | 3,152 | 0 | 0 | ||||||||||
Contribution (distribution) related to MRD Holdco incentive units compensation expense (Note 11) | (21,761) | 0 | (21,761) | 0 | 0 | ||||||||||
Distributions | (8,295) | 0 | 0 | 0 | (8,295) | ||||||||||
Equity repurchases | $ (271) | $ (30) | $ 0 | $ 0 | $ 0 | $ 0 | $ (271) | $ 0 | $ 0 | $ (30) | |||||
Amortization of MEMP equity awards | 2,492 | 0 | 0 | 0 | 2,492 | ||||||||||
Other | 131 | 0 | 0 | 0 | 131 | ||||||||||
Total equity, ending balance at Mar. 31, 2016 | 1,410,959 | $ 2,053 | $ 1,542,340 | $ (734,769) | |||||||||||
Noncontrolling interests, ending balance at Mar. 31, 2016 | 601,335 | $ 601,335 | |||||||||||||
Total stockholders equity, ending balance at Mar. 31, 2016 | $ 809,624 |
Background, Organization and Ba
Background, Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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) “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 (v) “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. Basis of Presentation Our consolidated financial statements include our accounts and those of our subsidiaries in which we have a controlling interest. Although MEMP is owned 99.9% by its limited partners and 0.1% by MEMP GP, we are required to consolidate MEMP for accounting and financial reporting purposes. See Note 2 and Note 16 for additional information regarding our adoption of the amended consolidation guidance and new disclosures that are now required for variable interest entities. See Note 18 for additional information regarding our pending divestiture of MEMP GP. All material intercompany transactions and balances have been eliminated in preparation of our consolidated financial statements. Our results of operations for the three months ended March 31, 2016 are not necessarily indicative of results expected for the full year. In our opinion, the accompanying unaudited condensed consolidated 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 13). 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 was retrospectively revised for the acquisition by the MEMP Segment of certain assets from the MRD Segment in East Texas in February 2015 for 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. Use of Estimates The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include, but are not limited to, oil and natural gas reserves; depreciation, depletion, and amortization of proved oil and natural gas properties; future cash flows from oil and natural gas properties; impairment of long-lived assets; realization of long-term prepaid processing fees; fair value of derivatives; fair value of equity compensation; fair values of assets acquired and liabilities assumed in business combinations, income taxes and asset retirement obligations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 2015 Form 10-K. Oil and Natural Gas Properties Oil and natural gas properties consisted of the following at the dates indicated (in thousands): March 31, December 31, 2016 2015 (In thousands) Proved oil and natural gas properties $ 5,540,668 $ 5,353,594 Support equipment and facilities 211,640 210,595 Unproved oil and natural gas properties 428,984 418,020 Total oil and natural gas properties $ 6,181,292 $ 5,982,209 At March 31, 2016 and December 31, 2015, we had $137.8 million and $201.0 million, respectively, capitalized in proved oil and natural gas properties related to wells in various stages of drilling and completion, which have been excluded from the depletion base. Accrued liabilities Current accrued liabilities consisted of the following at the dates indicated (in thousands): March 31, December 31, 2016 2015 Accrued capital expenditures $ 61,559 $ 48,307 Accrued interest payable 36,845 40,849 Accrued lease operating expense 18,781 18,874 Accrued general and administrative expenses 8,727 5,991 Accrued ad valorem taxes 3,486 1,583 Asset retirement obligation 1,175 1,175 Other miscellaneous, including operator advances 3,425 5,020 Total accrued liabilities $ 133,998 $ 121,799 Supplemental Cash Flow Information Supplemental cash flow for the periods presented (in thousands): For the Three Months Ended March 31, 2016 2015 Supplemental cash flows: Cash paid for interest, net of capitalized interest $ 42,131 $ 39,203 Cash paid for taxes 2,000 2,055 Noncash investing and financing activities: Increase (decrease) in capital expenditures in payables and accrued liabilities 13,252 4,589 (Increase) decrease in accounts receivable related to other financial instruments (4,333 ) — Assumptions of asset retirement obligations related to properties acquired or drilled 447 39 New Accounting Pronouncements Improvements to Employee Share-Based Payment Accounting . In March 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update to simplify the guidance on employee share-based payment accounting. The update involves several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. Entities will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (“APIC”). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement and the APIC pools will be eliminated. In addition, the new guidance eliminates the requirement that excess tax benefits be realized before companies can recognize them and requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Furthermore, the new guidance will increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. The new guidance requires a company to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows. In addition, companies will now have to elect whether to account for forfeitures on share-based payments by: (i) recognizing forfeitures of awards as they occur or (ii) estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as is currently required. The new guidance is effective for reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, but all of the guidance must be adopted in the same period. The Company is currently assessing the impact the adoption of this new guidance will have on our consolidated financial statements and related disclosures. For the amendments that change the recognition and measurement of share-based payment awards, the new guidance requires transition under a modified retrospective approach, with a cumulative-effect adjustment made to retained earnings as of the beginning of the fiscal period in which the guidance is adopted. Prospective application is required for the accounting for excess tax benefits and tax deficiencies. Entities should apply the new guidance retrospectively for all periods presented related to the classification of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirements. Entities may apply the presentation changes for excess tax benefits in the statement of cash flows either prospectively or retrospectively. Leases. In February 2016, the FASB issued a revision to its lease accounting guidance. The FASB retained a dual model, requiring leases to be classified as either direct financing or operating leases. The classification will be based on criteria that are similar to the current lease accounting treatment. The revised guidance requires lessees to recognize a right-of-use asset and lease liability for all leasing transactions regardless of classification. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The revised guidance must be adopted using a modified retrospective transition and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. The Company is currently evaluating the standard and the impact on the Company’s financial statements and related footnote 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. We adopted this guidance on January 1, 2016 and determined that MEMP was a VIE for which the Company is the primary beneficiary for accounting purposes. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements; however, VIE disclosure requirements are now applicable. See Note 16 for additional information. 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, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Note 3. Acquisitions and Divestitures Transaction-related costs, which include costs associated with acquisitions and divestitures, 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, 2016 2015 $ 116 $ 2,580 Acquisitions and Divestitures There were no material acquisitions and divestitures during the three months ended March 31, 2016 and 2015, respectively. |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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), restricted investments and amounts outstanding under long-term debt agreements with variable rates included in the accompanying balance sheets approximated fair value at March 31, 2016 and December 31, 2015. 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 7 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, 2016 and December 31, 2015 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, 2016 and December 31, 2015 for each of the fair value hierarchy levels: Fair Value Measurements at March 31, 2016 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 $ — $ 1,064,865 $ — $ 1,064,865 Interest rate derivatives — 28 — 28 Total assets $ — $ 1,064,893 $ — $ 1,064,893 Liabilities: Commodity derivatives $ — $ 73,316 $ — $ 73,316 Interest rate derivatives — 5,835 — 5,835 Total liabilities $ — $ 79,151 $ — $ 79,151 Fair Value Measurements at December 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 $ — $ 1,136,757 $ — $ 1,136,757 Interest rate derivatives — — — — Total assets $ — $ 1,136,757 $ — $ 1,136,757 Liabilities: Commodity derivatives $ — $ 84,981 $ — $ 84,981 Interest rate derivatives — 2,655 — 2,655 Total liabilities $ — $ 87,636 $ — $ 87,636 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. To compensate for the inherent risk of estimating and valuing unproved properties, the discounted future net revenues of probable and possible reserves are reduced by additional risk-weighting factors. The fair value of supporting equipment, such as plant assets, acquired in transactions accounted for as business combinations are commonly estimated using the depreciated replacement cost approach. · 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 natural gas properties. · During the three months ended March 31, 2016, MEMP recognized $8.3 million of impairments related to certain properties located in East Texas. The estimated future cash flows expected from these properties were compared to their carrying values and determined to be unrecoverable primarily as a result of declining commodity prices. As a result of the impairments, the carrying value of these properties was reduced to approximately $11.0 million. MEMP recorded $251.3 million of impairments during the three months ended March 31, 2015 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. |
Risk Management and Derivative
Risk Management and Derivative and Other Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Risk Management and Derivative and Other Financial Instruments | Note 5. Risk Management and Derivative and Other Financial Instruments Derivative and other financial 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 and other financial instruments, 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, and other financial instruments 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 and other financial instruments is minimized by limiting exposure to any single counterparty and entering into derivative and other financial 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 or other financial 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 or other financial instrument, 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, 2016, MEMP had net derivative assets of $698.2 million. After taking into effect netting arrangements, MEMP had counterparty exposure of $369.1 million related to its derivative instruments of which $213.5 million was with two counterparties. Had all counterparties failed completely to perform according to the terms of their existing contracts, MEMP would have the right to offset $332.2 million against amounts outstanding under its revolving credit facility at March 31, 2016. At March 31, 2016, MRD had net derivative and other financial assets of $322.9 million. After taking into effect netting arrangements, MRD had counterparty exposure of $88.6 million related to derivative and other financial instruments of which $61.5 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 $234.6 million against amounts outstanding under its revolving credit facility at March 31, 2016. See Note 7 for additional information regarding our revolving credit facilities. Commodity Derivatives and Other Financial Instruments We may use a combination of commodity derivatives and other financial instruments (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, 2016 is net of deferred premiums of $5.3 million. During the year ended December 31, 2015, MRD restructured its existing 2018 crude oil and natural gas hedges for crude oil and NGL swaps that will settle in 2016. Cash settlements of approximately $92.3 million from the terminated 2018 positions were received and applied as premiums for the new crude oil and NGL swaps. Certain contracts are classified as other financial instruments, which required bifurcation, based on the relationship between the fixed swap price and the market price at the restructure dates. Due to bifurcation, $35.4 million of the restructured contracts represents other financial assets at March 31, 2016. 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, 2016, the MRD Segment had the following open commodity positions (excluding embedded derivatives): Remaining 2016 2017 Natural Gas Derivative Contracts: Fixed price swap contracts: Average Monthly Volume (MMBtu) 2,753,333 1,770,000 Weighted-average fixed price $ 4.08 $ 4.24 Collar contracts: Average Monthly Volume (MMBtu) 1,066,667 1,050,000 Weighted-average floor price $ 4.00 $ 4.00 Weighted-average ceiling price $ 4.71 $ 5.06 Purchased put option contracts: Average Monthly Volume (MMBtu) 6,233,333 5,350,000 Weighted-average strike price $ 3.52 $ 3.48 Weighted-average deferred premium $ (0.34 ) $ (0.32 ) TGT Z1 basis swaps: Average Monthly Volume (MMBtu) 1,120,000 200,000 Spread - Henry Hub $ (0.10 ) $ (0.08 ) Crude Oil Derivative Contracts: Fixed price swap contracts: Average Monthly Volume (Bbls) 34,111 28,000 Weighted-average fixed price $ 83.89 $ 84.70 Collar contracts: Average Monthly Volume (Bbls) 26,667 — Weighted-average floor price $ 80.00 $ — Weighted-average ceiling price $ 99.70 $ — NGL Derivative Contracts: Fixed price swap contracts: Average Monthly Volume (Bbls) 356,545 — Weighted-average fixed price $ 39.71 $ — At March 31, 2016, the MRD Segment had the following open embedded derivative positions: Remaining 2016 Oil Hybrid Contracts: Fixed price swap contracts: Average Monthly Volume (Bbls) 25,872 Weighted-average fixed price $ 46.53 Initial net investment price 62.02 Total contract swap price $ 108.55 NGL Hybrid Contracts: Fixed price swap contracts: Average Monthly Volume (Bbls) 89,736 Weighted-average fixed price $ 15.85 Initial net investment price 25.90 Total contract swap price $ 41.75 At March 31, 2016, the MEMP Segment had the following open commodity positions: Remaining 2016 2017 2018 2019 Natural Gas Derivative Contracts: Fixed price swap contracts: Average Monthly Volume (MMBtu) 3,586,331 3,350,067 3,060,000 2,814,583 Weighted-average fixed price $ 4.14 $ 4.06 $ 4.18 $ 4.31 Basis swaps: Average Monthly Volume (MMBtu) 3,572,778 2,210,000 1,315,000 900,000 Spread $ (0.07 ) $ (0.04 ) $ (0.02 ) $ 0.01 Crude Oil Derivative Contracts: Fixed price swap contracts: Average Monthly Volume (Bbls) 304,313 301,600 312,000 160,000 Weighted-average fixed price $ 85.47 $ 85.00 $ 83.74 $ 85.52 Basis swaps: Average Monthly Volume (Bbls) 139,667 67,500 — — Spread $ (10.01 ) $ (7.82 ) $ — $ — NGL Derivative Contracts: Fixed price swap contracts: Average Monthly Volume (Bbls) 210,433 43,300 — — Weighted-average fixed price $ 35.79 $ 37.55 $ — $ — The MEMP Segment basis swaps included in the table above is presented on a disaggregated basis below: Remaining 2016 2017 2018 2019 Natural Gas Derivative Contracts: NGPL TexOk basis swaps: Average Monthly Volume (MMBtu) 2,997,778 1,800,000 1,200,000 900,000 Spread - Henry Hub $ (0.07 ) $ (0.07 ) $ (0.03 ) $ 0.01 HSC basis swaps: Average Monthly Volume (MMBtu) 135,000 115,000 115,000 — Spread - Henry Hub $ 0.07 $ 0.14 $ 0.15 $ — CIG basis swaps: Average Monthly Volume (MMBtu) 170,000 — — — Spread - Henry Hub $ (0.30 ) $ — $ — $ — TETCO STX basis swaps: Average Monthly Volume (MMBtu) 270,000 295,000 — — Spread - Henry Hub $ 0.06 $ 0.03 $ — $ — Crude Oil Derivative Contracts: Midway-Sunset basis swaps: Average Monthly Volume (Bbls) 99,667 37,500 — — Spread - Brent $ (12.29 ) $ (12.20 ) $ — $ — Midland basis swaps: Average Monthly Volume (Bbls) 40,000 30,000 — — Spread - WTI $ (4.34 ) $ (2.35 ) $ — $ — 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, 2016, MEMP had the following interest rate swap open positions: Remaining Credit Facility 2016 2017 2018 MEMP: Average Monthly Notional (in thousands) $ 400,000 $ 400,000 $ 300,000 Weighted-average fixed rate 0.943 % 1.612 % 1.427 % Floating rate 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, 2016 and December 31, 2015. 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 2016 2015 2016 2015 (In thousands) Commodity contracts Short-term derivative instruments $ 521,982 $ 552,614 $ 48,930 $ 53,939 Interest rate swaps Short-term derivative instruments — — 2,194 1,214 Gross fair value 521,982 552,614 51,124 55,153 Netting arrangements Short-term derivative instruments (49,026 ) (52,303 ) (49,026 ) (52,303 ) Net recorded fair value Short-term derivative instruments $ 472,956 $ 500,311 $ 2,098 $ 2,850 Commodity contracts Long-term derivative instruments $ 542,883 $ 584,143 $ 24,386 $ 31,042 Interest rate swaps Long-term derivative instruments 28 — 3,641 1,441 Gross fair value 542,911 584,143 28,027 32,483 Netting arrangements Long-term derivative instruments (25,866 ) (31,042 ) (25,866 ) (31,042 ) Net recorded fair value Long-term derivative instruments $ 517,045 $ 553,101 $ 2,161 $ 1,441 (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 periods indicated (in thousands): For the Three Months Ended Statements of March 31, Operations Location 2016 2015 Commodity derivative contracts (Gain) loss on commodity derivatives $ (88,187 ) $ (253,649 ) Interest rate derivatives Interest expense, net 3,682 2,441 |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 (in thousands): Asset retirement obligations at beginning of period $ 174,243 Liabilities added from acquisitions or drilling 447 Liabilities settled (615 ) Revision of estimates 199 Liabilities removed upon sale of wells (451 ) Accretion expense 2,847 Asset retirement obligations at end of period 176,670 Less: Current portion 1,175 Asset retirement obligations - long-term portion $ 175,495 |
Long Term Debt
Long Term Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Note 7. Long Term Debt The following table presents our consolidated debt obligations at the dates indicated: March 31, December 31, 2016 2015 (In thousands) MRD Segment: MRD $2.0 billion revolving credit facility, variable-rate, due June 2019 $ 524,000 $ 423,000 5.875% senior unsecured notes, due July 2022 ("MRD Senior Notes") (1) (4) 600,000 600,000 Unamortized debt issuance costs (10,517 ) (10,936 ) Subtotal 1,113,483 1,012,064 MEMP Segment: MEMP $2.0 billion revolving credit facility, variable-rate, due March 2018 792,000 836,000 7.625% senior unsecured notes, due May 2021 ("2021 Senior Notes") (2) (4) 700,000 700,000 6.875% senior unsecured notes, due August 2022 ("2022 Senior Notes") (3) (4) 496,990 496,990 Unamortized discounts (13,509 ) (14,114 ) Unamortized debt issuance costs (17,497 ) (18,297 ) Subtotal 1,957,984 2,000,579 Total long-term debt $ 3,071,467 $ 3,012,643 (1) The estimated fair value of this fixed-rate debt was $507.0 million and $525.0 million at March 31, 2016 and December 31, 2015, respectively. (2) The estimated fair value of this fixed-rate debt was $203.0 million and $210.0 million at March 31, 2016 and December 31, 2015, respectively. (3) The estimated fair value of this fixed-rate debt was $135.4 million and $149.1 million at March 31, 2016 and December 31, 2015, respectively. (4) 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 base 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, 2016 MRD Segment: MRD $2.0 billion revolving credit facility, variable-rate, due June 2019 $ 1,000,000 MEMP Segment: MEMP $2.0 billion revolving credit facility, variable-rate, due March 2018 1,175,000 In April 2016, the respective borrowing bases, under the MRD and MEMP revolving credit facilities were redetermined. For additional information, see “Subsequent Events” below. 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, 2016 2015 MRD Segment: MRD revolving credit facility 2.26 % 1.87 % MEMP Segment: MEMP revolving credit facility 2.43 % 1.90 % 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, 2016 2015 (In thousands) MRD Segment: MRD revolving credit facility $ 4,636 $ 4,976 MRD Senior Notes 10,517 10,936 MEMP Segment: MEMP revolving credit facility 3,289 3,672 2021 Senior Notes 10,665 11,194 2022 Senior Notes 6,832 7,103 $ 35,939 $ 37,881 Subsequent Events On April 11, 2016, MRD’s revolving credit facility borrowing base was reaffirmed at $1.0 billion in connection with the semi-annual borrowing redetermination by the lenders. There were no new amendments and or changes to the financial covenants. On April 14, 2016, MEMP entered into a tenth amendment (the “Tenth Amendment”) to its credit agreement (as previously amended, the “MEMP Credit Agreement”), dated as of December 14, 2011, by and among MEMP, Memorial Production Operating LLC, the guarantors party thereto, the administrative agent and the other agents and lenders party thereto. The Tenth Amendment, among other things, amended the MEMP Credit Agreement to: · establish a new Applicable Margin (as defined in the MEMP Credit Agreement) that ranges from 1.25% to 2.25% per annum (based on borrowing base usage) on alternate base rate loans and from 2.25% to 3.25% per annum (based on borrowing base usage) on Eurodollar or LIBOR loans and sets the committee fee for the unused portion of the borrowing base to 0.50% per annum regardless of the borrowing base usage; · reduce the borrowing base thereunder from $1,175.0 million to $925.0 million; · require MEMP to maintain a ratio of Consolidated First Lien Net Secured Debt (as defined in the MEMP Credit Agreement) to Consolidated EBITDAX (as defined in the MEMP Credit Agreement) of not greater than 3.25 to 1.00 as of the end of each fiscal quarter; · permit the issuance by MEMP of secured second lien notes solely in exchange for MEMP’s outstanding senior unsecured notes pursuant to one or more senior debt exchanges; provided that, among other things: (i) such debt shall be (A) in an aggregate principal amount not to exceed $600.0 million (plus any principal representing payment of interest in kind) and (B) such debt is subject to an intercreditor agreement at all times; and (ii) such debt shall not (A) have any scheduled principal amortization or have a scheduled maturity date or a date of mandatory redemption in full prior to 180 days after March 19, 2018, or (B) not contain any covenants or events of default that are more onerous or restrictive than those set forth in the MEMP Credit Agreement other than covenants or events of default that are contained in MEMP’s existing senior unsecured notes and (C) the Consolidated Net Interest Expense (as defined in the MEMP Credit Agreement) for the 12-month period following the exchange, after giving pro forma effect to the exchange, shall be no greater than the Consolidated Net Interest Expense for such period had the exchange not occurred; · permit the payment by MEMP of cash distributions to its equity holders out of available cash in accordance with its partnership agreement so long as, among other things, the pro forma Availability (as defined in the MEMP Credit Agreement) shall be not less than the greater of $75.0 million or (x) 10% of the borrowing base then in effect with respect to any such distributions made prior to June 1, 2016 or (y) 15% of the borrowing base then in effect with respect to any such distributions made on or after June 1, 2016; provided that the aggregate amount of all such payments made in any fiscal quarter for which the ratio of MEMP’s total debt at the time of such payment to its Consolidated EBITDAX for the four fiscal quarters ending on the last day of the fiscal quarter immediately preceding the date of determination for which financial statements are available is greater than or equal to 4.00 to 1.00 will not exceed $4.15 million during such fiscal quarter; · permit the repurchase of MEMP’s (i) outstanding senior unsecured notes, or if any, second lien debt with proceeds from Swap Liquidations (as defined in the MEMP Credit Agreement), the sale or other disposition of oil and gas properties and (ii) outstanding senior unsecured notes with the proceeds from the release of cash securing certain governmental obligations located in the Beta Field offshore Southern California, provided that, among other things, (A) the pro forma Availability is not less than the greater of $75.0 million or (x) 10% of the borrowing base then in effect through May 31, 2016 or (y) 15% of the borrowing base then in effect on or after June 1, 2016, (B) MEMP’s pro forma ratio of Consolidated First Lien Net Secured Debt to Consolidated EBITDAX is not greater than 3.00 to 1.00, and (C) the amount of proceeds from all Swap Liquidations and sales or other dispositions of oil and gas properties used to repurchase outstanding senior unsecured notes or secured second lien notes does not exceed $40.0 million in the aggregate, or in the case of the release of cash securing such obligations, the amount of proceeds used to repurchase outstanding senior unsecured notes does not exceed $60.0 million in the aggregate; · require that the oil and gas properties of MEMP mortgaged as collateral security for the loans under the MEMP Credit Agreement represent not less than 90% of the total value of the oil and gas properties of MEMP evaluated in the most recently completed reserve report; and · require MEMP, in the event that at the close of any business day the aggregate amount of any unrestricted cash or cash equivalents exceeds $25.0 million in the aggregate, to prepay the loans under the MEMP Credit Agreement and cash collateralize any letter of credit exposure with such excess. |
Stockholders' Equity and Noncon
Stockholders' Equity and Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity and Noncontrolling Interests | Note 8. 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, 2016: Balance December 31, 2015 205,293,743 Restricted common shares issued (Note 10) 24,069 Restricted common shares repurchased (1) (20,566 ) Restricted common shares forfeited (5,953 ) Balance March 31, 2016 205,291,293 (1) Restricted common shares are generally net-settled by shareholders to cover the required withholding tax upon vesting. Participants surrendered shares with value equivalent to the employee’s minimum statutory obligation for the applicable income and other employment taxes. Total payments remitted for the employees’ tax obligations to the appropriate taxing authorities were approximately $0.3 million. These net-settlements had the effect of shares repurchased by the Company as they reduced the number of shares that would have otherwise been outstanding as a result of the vesting and did not represent an expense to the Company. See Note 10 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 . 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 was not obligated to repurchase any dollar amount or specific number of shares of its common stock under the program, which could have been suspended or discontinued at any time. The Company did not repurchase any shares of common stock under the April 2015 repurchase program through March 31, 2016. The April 2015 repurchase program expired in April 2016. 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 November 3, 2015. Distributions paid to the limited partners of MEMP primarily represent the quarterly cash distributions paid to MEMP’s unitholders. 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. MEMP’s December 2014 repurchase program expired in December 2015. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 9. Earnings per Share The following sets forth the calculation of earnings (loss) per share, or EPS, for the periods indicated (in thousands, except per share amounts): For the Three Months Ended March 31, 2016 2015 Numerator: Net income (loss) available to common stockholders $ 5,632 $ 45,615 Denominator: Weighted average common shares outstanding 203,665 190,705 Incremental treasury stock method shares (1) — 151 Basic EPS $ 0.03 $ 0.24 Diluted EPS (1) $ 0.03 $ 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 each period presented. For the three months ended March 31, 2016, there were approximately 32,000 shares excluded from the computation of diluted EPS under the treasury stock method because the inclusion of such shares would have been anti-dilutive. |
Long-Term Incentive Plans
Long-Term Incentive Plans | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Long-Term Incentive Plans | Note 10. 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 (“LTIP”) for the periods presented: Number of Shares Weighted-Average Grant Date Fair Value per Share (1) Restricted common shares outstanding at December 31, 2015 1,668,845 $ 18.89 Granted (2) 24,069 $ 15.58 Forfeited (5,953 ) $ 18.91 Vested (91,038 ) $ 18.32 Restricted common shares outstanding at March 31, 2016 1,595,923 $ 18.87 (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 2016 was $0.4 million based on a grant date market price of $15.58. 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, 2016 2015 $ 3,152 $ 1,486 The unrecognized compensation cost associated with restricted common share awards was $21.2 million at March 31, 2016. We expect to recognize the unrecognized compensation cost for these awards over a weighted-average period of 2.16 years. LTIP Modification. On March 9, 2016, certain employees were impacted by an involuntary termination which, upon the Board’s approval, accelerated the vesting schedule of unvested awards under the LTIP that otherwise would have been forfeited upon a voluntary termination. The acceleration of the LTIP vesting schedule represents an improbable-to-probable modification. The grant-date fair value compensation cost of approximately $0.4 million was reversed and the modified-date grant fair value compensation cost of $1.1 million was recognized. Subsequent event. An award of 1,093,537 shares of restricted common shares was granted to each of our executive officers and other employees on April 29, 2016 and will vest ratably on a three-year annual vesting schedule from the date of grant. MEMP The following table summarizes information regarding restricted common unit awards granted under the Memorial Production Partners GP LLC Long-Term Incentive Plan (“MEMP LTIP”) for the periods presented: Number of Units Weighted-Average Grant Date Fair Value per Unit (1) Restricted common units outstanding at December 31, 2015 1,368,538 $ 17.61 Granted (2) 50,000 $ 2.41 Forfeited (9,669 ) $ 18.50 Vested (102,600 ) $ 15.96 Restricted common units outstanding at March 31, 2016 1,306,269 $ 17.15 (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 2016 was $0.1 million based on a grant date market price of $2.41. The unrecognized compensation cost associated with restricted common unit awards was $12.9 million at March 31, 2016. We expect to recognize the unrecognized compensation cost for these awards over a weighted-average period of 1.66 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 cash flows. On January 8, 2016, MEMP issued a total of 155,601 phantom units to non-employee directors which will vest in January 2017. The awards included distribution equivalent rights (“DERs”) pursuant to which the recipient will receive a cash payment with respect to each phantom unit equal to any cash distribution that MEMP pay to a holder of a common unit. Upon vesting, the phantom unit shall be settled through an amount of cash in a single lump sum payment equal to the product of (y) the closing price of MEMP’s common units on the vesting date and (z) the number of such vested phantom units. In lieu of a cash payment, the board of directors of MEMP GP, in its discretion, may elect for the recipient to receive either a number of common units equal to the number of such vested phantom units or a combination of cash and common units. The following table summarizes the amount of recognized compensation expense associated with the MEMP LTIP awards that are reflected in the accompanying statements of operations for the periods presented (in thousands): For the Three Months Ended March 31, 2016 2015 Equity classified awards Restricted common units $ 2,492 $ 2,341 Liability classified awards Phantom units 76 — $ 2,568 $ 2,341 MEMP On March 9, 2016, certain employees were impacted by an involuntary termination which, upon the MEMP GP board of directors’ approval, accelerated the vesting schedule of unvested awards under the MEMP LTIP that otherwise would have been forfeited upon a voluntary termination. The acceleration of the MEMP LTIP vesting schedule represents an improbable-to-probable modification. The grant-date fair value compensation cost of $0.5 million was reversed and the modified-date grant fair value compensation cost of approximately $0.3 million was recognized. |
Incentive Units
Incentive Units | 3 Months Ended |
Mar. 31, 2016 | |
Compensation Related Costs [Abstract] | |
Incentive Units | Note 11. Incentive Units MRD Holdco MRD Holdco’s governing documents authorize the issuance of 1,000 incentive units, of which 930 incentive units were granted in exchange for cancelled predecessor 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 a $21.7 million reduction of previously recognized compensation expense for the three months ended March 31, 2016 due to a decrease in MRD’s stock price, offset by a deemed capital distribution to MRD Holdco. The unrecognized compensation expense of approximately $38.5 million as of March 31, 2016 will be recognized over the remaining expected service period of 1.17 years. The fair value of the Exchanged Incentive Units 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, adjustments to non-cash compensation expense will be allocated to us in future periods offset by deemed capital contributions or distributions. 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 3/31/2016 3/31/2016 Dividend yield 0 % 0 % Expected volatility 56.61 % 56.61 % Risk-free rate 0.61 % 0.61 % Expected life (years) 1.17 1.17 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12. Related Party Transactions Amounts due to MRD Holdco and certain affiliates of NGP at March 31, 2016 and December 31, 2015 are presented as “Accounts payable – NGP Affiliated Companies During the three months ended March 31, 2016 and 2015, MRD paid approximately $3.3 million and $0.6 million, respectively, to Cretic Energy Services, LLC, an NGP affiliated company, for services related to our drilling and completion activities. During the three months ended March 31, 2016 and 2015, MRD paid approximately $2.4 million and $0.2 million, respectively, to Multi-Shot, LLC, an NGP affiliated company, for services related to our drilling and completion activities. 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 and Voting Agreement A discussion of these agreements is included in our 2015 Form 10-K. Services Agreement A discussion of this agreement is included in our 2015 Form 10-K. The services agreement was terminated effective March 1, 2015. During the three months ended March 31, 2015, we recognized approximately $2.0 million of general and administrative expenses under this agreement. Midstream Agreements We have various midstream service agreements with affiliates of PennTex Midstream Partners, LP (“PennTex”), an affiliate of NGP, for the gathering, processing and transportation of natural gas and NGLs. Additionally, we entered into an area of mutual interest and exclusivity agreement (“AMI”) with PennTex pursuant to which PennTex has the exclusive right to provide midstream services to support our current and future production in North Louisiana on our operated acreage within such area (other than production subject to existing third-party commitments). A discussion of these agreements is included in our 2015 Form 10-K. Pursuant to the gas processing agreement, any deficiency payments made by the Company under this agreement will be treated as prepaid processing fees by PennTex (except for the June 2015 deficiency payment) because we may utilize these deficiency payments as credit for fees owed if we have delivered the total minimum volume commitment under the processing agreement within the initial term of the agreement We must pay a quarterly deficiency payment based on the firm-commitment fixed fee if the cumulative minimum volume commitment as of the end of such quarter exceeds the sum of (i) the cumulative volumes processed (or credited with respect to plant interruptions) under the processing agreement as of the end of such quarter plus (ii) volumes corresponding to deficiency payments incurred prior to such quarter. At March 31, 2016, All net costs associated with these agreements are reflected in the statement of operations in the “Gathering, processing, and transportation – affiliate” line. Classic Pipeline Gas Gathering Agreement & Water Disposal Agreement A discussion of these agreements is included in our 2015 Form 10-K. The amended gas gathering agreement was terminated in November 2015 in connection with a third party’s acquisition of Classic Pipeline and Gathering, LLC’s (“Classic Pipeline”) Joaquin gathering system. Additionally, Classic Pipeline assigned its salt water disposal system to MEMP in November 2015. For the three months ended March 31, 2015, MEMP incurred gathering and salt water disposal fees of approximately $0.9 million under these agreements. |
Business Segment Data
Business Segment Data | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Data | Note 13. 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; debt extinguishment cost; 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; cash settlements on other financial instruments; losses on sale of properties; stock-based compensation; 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; 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. Our consolidated totals reflect the elimination of any intersegment transactions. In the MRD Segment’s individual financial statements, investments in the MEMP Segment that are included in the consolidated financial statements are accounted for by the equity method. The following table presents selected business segment information for the periods indicated (in thousands): Other, Adjustments & Consolidated MRD MEMP Eliminations Totals Total revenues: For the Three Months Ended March 31, 2016 $ 81,078 $ 60,866 $ — $ 141,944 For the Three Months Ended March 31, 2015 87,023 92,818 — 179,841 Adjusted EBITDA: (1) For the Three Months Ended March 31, 2016 106,376 81,306 (9 ) 187,673 For the Three Months Ended March 31, 2015 86,830 86,432 (76 ) 173,186 Segment assets: (2) As of March 31, 2016 2,267,650 2,830,102 (839 ) 5,096,913 As of December 31, 2015 2,177,492 2,906,003 (646 ) 5,082,849 Total cash expenditures for additions to long-lived assets: For the Three Months Ended March 31, 2016 163,839 22,632 — 186,471 For the Three Months Ended March 31, 2015 88,566 77,680 — 166,246 (1) Adjustments and eliminations for the three months ended March 31, 2016 and 2015 include cash distributions that MEMP paid to MRD during the three months ended March 31, 2016 and 2015, related to the ownership of partnership interests in MEMP. (2) Adjustments and eliminations primarily represent the elimination of investment in subsidiaries balances at March 31, 2016 and December 31, 2015. Calculation of Reportable Segments’ Adjusted EBITDA For the Three Months Ended March 31, 2016 Combined MRD MEMP Totals (In thousands) Net income (loss) $ 5,677 $ (38,097 ) $ (32,420 ) Interest expense, net 11,357 32,552 43,909 Income tax expense (benefit) 2,937 96 3,033 DD&A 59,799 44,429 104,228 Impairment of proved oil and natural gas properties — 8,342 8,342 Accretion of AROs 140 2,707 2,847 (Gain) loss on commodity derivative instruments (36,442 ) (51,745 ) (88,187 ) Cash settlements received (paid) on expired commodity derivative and other financial instruments 78,942 80,221 159,163 Transaction related costs 30 86 116 Incentive-based compensation expense (benefit) (18,609 ) 2,568 (16,041 ) Exploration costs 2,446 122 2,568 (Gain) loss on sale of properties 50 (96 ) (46 ) Loss on settlement of AROs — 121 121 Non-cash equity (income) loss from MEMP 40 — 40 Cash distributions from MEMP 9 — 9 Adjusted EBITDA $ 106,376 $ 81,306 $ 187,682 For the Three Months Ended March 31, 2015 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 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, 2016 2015 Total Reportable Segments' Adjusted EBITDA $ 187,682 $ 173,262 Adjustments to reconcile Adjusted EBITDA to net income (loss): Interest expense, net (43,909 ) (38,574 ) Income tax benefit (expense) (3,033 ) (45,188 ) DD&A (104,228 ) (91,798 ) Impairment of proved oil and natural gas properties (8,342 ) (251,347 ) Accretion of AROs (2,847 ) (1,757 ) Gains (losses) on commodity derivative instruments 88,187 253,649 Cash settlements paid (received) on expired commodity derivative and other financial instruments (159,163 ) (92,873 ) Gain (loss) on sale of properties 46 — Transaction related costs (116 ) (2,580 ) Incentive-based compensation benefit (expense) 16,041 (14,051 ) Exploration costs (2,568 ) (816 ) Loss on settlement of AROs (121 ) — Cash distributions from MEMP (9 ) (76 ) Net income (loss) $ (32,380 ) $ (112,149 ) Included below is our consolidated statement of operations disaggregated by reportable segment for the period indicated (in thousands): For the Three Months Ended March 31, 2016 MRD MEMP Other, Adjustments & Eliminations Consolidated Revenues: Oil & natural gas sales $ 81,078 $ 60,623 $ — $ 141,701 Other revenues — 243 — 243 Total revenues 81,078 60,866 — 141,944 Costs and expenses: Lease operating 6,714 35,696 — 42,410 Gathering, processing, and transportation 21,941 9,209 — 31,150 Gathering, processing, and transportation - affiliate 14,187 — — 14,187 Exploration 2,446 122 — 2,568 Taxes other than income 2,864 4,008 — 6,872 Depreciation, depletion, and amortization 59,799 44,429 — 104,228 Impairment of proved oil and natural gas properties — 8,342 — 8,342 Incentive unit compensation expense (benefit) (21,761 ) — — (21,761 ) General and administrative 11,133 13,524 — 24,657 Accretion of asset retirement obligations 140 2,707 — 2,847 (Gain) loss on commodity derivative instruments (36,442 ) (51,745 ) — (88,187 ) (Gain) loss on sale of properties 50 (96 ) — (46 ) Other, net — 119 — 119 Total costs and expenses 61,071 66,315 — 127,386 Operating income (loss) 20,007 (5,449 ) — 14,558 Other income (expense): Interest expense, net (11,357 ) (32,552 ) — (43,909 ) Earnings from equity investments (40 ) — 40 — Other, net 4 — — 4 Total other income (expense) (11,393 ) (32,552 ) 40 (43,905 ) Income (loss) before income taxes 8,614 (38,001 ) 40 (29,347 ) Income tax benefit (expense) (2,937 ) (96 ) — (3,033 ) Net income (loss) $ 5,677 $ (38,097 ) $ 40 $ (32,380 ) For the Three Months Ended March 31, 2015 MRD MEMP Other, Adjustments & Eliminations Consolidated 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 8,666 — 23,429 Exploration 726 90 — 816 Taxes other than income 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 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14. 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, 2016 and December 31, 2015, MEMP had $0.1 million and $0.2 million of environmental reserves recorded on our balance sheets, respectively. Third Party Midstream Service Agreements (Gathering & Processing) The Company has an existing amended and restated midstream service agreement with ETC Field Services LLC (formerly known as Regency Field Services LLC) (“ETC”) for the gathering and processing of natural gas in in North Louisiana as discussed in our 2015 Form 10-K. ETC is entitled to receive a payback demand fee from us and other third parties equal to 110% of certain infrastructure improvement costs. The payback demand fee is based upon actual volumes gathered, but not less than a specified monthly demand quantity. Until payout is achieved, there is also a monthly demand quantity associated with gathering and processing fees. We have the right to request that gas gathered by ETC be delivered to alternative delivery points for processing (e.g., PennTex). Under these circumstances, ETC assesses us a $0.25 per MMBtu gathering only fee to take gas off its system. Firm Gas Transportation Service Agreement During the three months ended March 31, 2016, the Company entered into a long-term firm transportation agreement with Regency Intrastate Gas LP (“RIGS”) to assure the delivery of its natural gas to market. This agreement’s primary term terminates on December 31, 2025, subject to one-year extensions at either party’s election. This commitment requires a minimum monthly reservation charge that escalates annually by two percent regardless of whether the contracted capacity is used or not. An overrun charge that also escalates annually by two percent applies to gas received in excess of the contracted capacity. In addition to the demand and overrun fees, RIGS retains 1.25% of gas received for fuel. The following table summarizes the reserved capacity and applicable fees associated with this agreement: Period Reserved Capacity (MMBtu/d) Reservation Demand Charge ($/MMBtu) Overrun Charge ($/MMBtu) January 1, 2016 to December 31, 2022 300,000 0.075 0.150 January 1, 2023 to December 31, 2025 200,000 0.075 0.150 In the future, additional receipt points may be developed. The following pricing grid, subject to annual escalation, would apply to gas received at any of these future receipt points. Reservation Demand Charge ($/MMBtu) Commodity Charge ($/MMBtu) Overrun Charge ($/MMBtu) Total gas receipts ≤ 0.075 0.075 n/a Total gas receipts > contracted reserved capacity n/a n/a 0.150 Sales Delivery Commitment Recently, the Company and a third party entered into a contract whereby the Company agreed to sell and deliver NGLs produced at gas processing plants owned and operated by PennTex. The NGLs are delivered to a pipeline owned by an affiliate of the third party. The initial term of the contract terminates on December 31, 2022, subject to one-year extensions at either party’s election. The price MRD receives is tied to published indices, net of transportation and fractionation deductions. Commencing April 1, 2016, through the end of the initial term of the agreement, the minimum sales volume commitment is 6,000 BPD. If we fail to deliver the minimum sales volume commitment, we will be required to pay a deficiency payment equal to transportation and fractionation deductions on undelivered volumes. Currently, transportation and fractionation deductions are approximately $4.39 per barrel. 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 as of March 31, 2016 (in thousands): Amortized Investment Cost U.S. Bank Money Market Cash Equivalent $ 146,028 The trust account must maintain minimum balances as follows (in thousands): June 30, 2016 $ 148,000 December 31, 2016 $ 152,000 As of March 31, 2016, the maximum remaining obligation was approximately $6.0 million. Related Party Agreements See Note 12 for additional information. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15. Income Taxes The Company is a corporation subject to federal and state income taxes. The net income (loss) attributable to noncontrolling interest is related to MEMP, which is a pass-through entity for federal income tax purposes; The Company’s income tax expense for the three months ended March 31, 2016 and 2015 was $3.0 million and $45.2 million, respectively. The change in the income tax expense was primarily attributable to decreased pre-tax income in the MRD Segment. The Company’s effective tax rate for the three months ended March 31, 2016 and 2015 was negative 10.3% and negative 67.5%, respectively. The change in the effective tax rate was primarily due to a change in earnings from the MEMP Segment pass-through entities and a change in non-deductible incentive unit compensation as discussed in Note 11. The effective tax rate for the three months ended March 31, 2016 and 2015 differed from the statutory federal income tax rate primarily due to the following recurring items: · earnings from the MEMP Segment pass-through entities; · non-deductible incentive unit compensation; and · state income tax, net of federal benefit. The Company reported no liability for unrecognized tax benefits as of March 31, 2016 and expects no significant change to the unrecognized tax benefits in the next twelve months. Consistent with establishing the deferred tax liability through stockholders’ equity in its initial public offering, the Company reversed a deferred tax liability of approximately $28.0 million through stockholders’ equity in 2015 attributable to the deferred tax effects of the Property Swap in 2015. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Note 16. Variable Interest Entities Under the amended consolidation guidance that we adopted on January 1, 2016 (see Note 2), a limited partnership is considered a VIE unless a single limited partner or a simple majority of all partners have substantive kick-out or participating rights. MEMP is a VIE because its limited partners do not hold such rights under MEMP’s partnership agreement. A reporting entity has a controlling financial interest in a VIE and must consolidate the VIE if it has both: (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determined it has the power to direct the activities of MEMP that most significantly impact MEMP’s economic performance. MEMP GP is responsible for managing all of the MEMP’s operations and activities. Through an omnibus agreement, the Company provides management, administrative, and operations personnel to MEMP and MEMP GP. The Company, through MEMP GP, owns 50% of MEMP’s incentive distribution rights (“IDRs”) and the remaining IDRs are owned by affiliates of NGP. The IDRs represent the right to receive an increasing percentage (14.9% and 24.9%) of quarterly distributions of available cash from MEMP’s operating surplus after the minimum quarterly distribution and specified target distribution levels have been achieved. Determining whether the economic interests are “potentially significant” is an area of significant judgment that is not probability-based; it considers all possible scenarios. The Company determined that the IDRs held by MEMP GP could potentially be significant. Business purpose and design of the IDRs were qualitative factors considered in determining that the potential significance of the IDRs. MEMP is not a guarantor of any of the Company’s debt. MEMP’s creditors have no recourse to the general credit of the Company. We have presented parenthetically on the face of the consolidated balance sheets the assets of MEMP that can be used only to settle MEMP’s obligations and the liabilities of MEMP for which creditors do not have recourse to the general credit of the Company. MEMP has a capital structure that is independent of the Company. The Company has no obligation to provide any financial support to MEMP. MEMP GP generally has unlimited liability for the obligations of MEMP, except for those contractual obligations of MEMP that are expressly made without recourse to MEMP GP. The Company, as the sole member of MEMP GP, is generally shielded from liability for acts and debts of MEMP GP, except to the extent of its equity investment in MEMP GP. As a result, the Company’s maximum exposure to loss as a result of its involvement with MEMP is limited to its equity investment in MEMP GP of approximately $0.8 million. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | Note 17. Condensed Consolidating Financial Information The Company owns no operating assets and has no significant operations independent of its subsidiaries. Our obligations under the MRD Senior Notes outstanding are fully and unconditionally guaranteed, jointly and severally, by certain of our 100% owned subsidiaries on a senior unsecured basis. Subsidiaries with noncontrolling interests (i.e. MEMP) and certain de minimis subsidiaries are non-guarantors. The following condensed consolidating financial information presents the financial information of the Company on a unconsolidated stand-alone basis and its combined guarantor and combined non-guarantor subsidiaries as of and for the period indicated. Such financial information may not necessarily be indicative of our results of operations, cash flows or financial position had these subsidiaries operated as independent entities. As of March 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2,779 $ — $ 836 $ (1,540 ) $ 2,075 Accounts receivable - trade 14,139 56,820 45,290 (3,525 ) 112,724 Accounts receivable - affiliates 8,244 — — (8,244 ) — Short-term derivative instruments 213,102 — 259,854 — 472,956 Other financial assets 35,358 — — — 35,358 Prepaid expenses and other current assets 2,198 4,406 4,839 — 11,443 Total current assets 275,820 61,226 310,819 (13,309 ) 634,556 Property and equipment, net 14,902 1,845,780 1,917,382 — 3,778,064 Long-term derivative instruments 74,429 — 442,616 — 517,045 Investments in subsidiaries 1,610,811 — — (1,610,811 ) — Other long-term assets 4,637 3,326 159,285 — 167,248 Total assets $ 1,980,599 $ 1,910,332 $ 2,830,102 $ (1,624,120 ) $ 5,096,913 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued liabilities $ 18,182 $ 76,460 $ 68,607 $ (1,540 ) $ 161,709 Accounts payable - affiliates — 12,572 5,137 (8,266 ) 9,443 Revenues payable — 33,145 25,427 — 58,572 Short-term derivative instruments — — 2,098 — 2,098 Total current liabilities 18,182 122,177 101,269 (9,806 ) 231,822 Long-term debt 1,113,483 — 1,957,984 — 3,071,467 Asset retirement obligations — 10,531 164,964 — 175,495 Long-term derivative instruments — — 2,161 — 2,161 Deferred tax liabilities 32,621 163,541 2,158 — 198,320 Other long-term liabilities 6,689 — — — 6,689 Total liabilities 1,170,975 296,249 2,228,536 (9,806 ) 3,685,954 Equity: Equity 809,624 1,614,083 601,566 (2,215,649 ) 809,624 Noncontrolling interest — — — 601,335 601,335 Total equity 809,624 1,614,083 601,566 (1,614,314 ) 1,410,959 Total liabilities & equity $ 1,980,599 $ 1,910,332 $ 2,830,102 $ (1,624,120 ) $ 5,096,913 As of December 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2,986 $ — $ 599 $ (1,410 ) $ 2,175 Accounts receivable- trade 7,850 49,537 60,238 (3,530 ) 114,095 Accounts receivable - affiliates 9,525 — — (9,525 ) — Short-term derivative instruments 227,991 — 272,320 — 500,311 Other financial assets 46,106 — — — 46,106 Prepaid expenses and other current assets 2,318 3,670 7,029 — 13,017 Total current assets 296,776 53,207 340,186 (14,465 ) 675,704 Property and equipment, net 15,825 1,729,236 1,946,323 — 3,691,384 Long-term derivative instruments 91,292 — 461,809 — 553,101 Investments in subsidiaries 1,482,847 — — (1,482,847 ) — Other long-term assets 4,976 — 157,684 — 162,660 Total assets $ 1,891,716 $ 1,782,443 $ 2,906,002 $ (1,497,312 ) $ 5,082,849 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ 26,796 $ 69,279 $ 61,715 $ (2,142 ) $ 155,648 Accounts payable - affiliates — 14,193 3,339 (12,323 ) 5,209 Revenues payable 80 35,463 25,504 — 61,047 Short-term derivative instruments — — 2,850 — 2,850 Total current liabilities 26,876 118,935 93,408 (14,465 ) 224,754 Long-term debt 1,012,064 — 2,000,579 — 3,012,643 Asset retirement obligations — 10,079 162,989 — 173,068 Long-term derivative instruments — — 1,441 — 1,441 Deferred tax liabilities 22,754 170,979 2,094 — 195,827 Other long-term liabilities 7,195 — — — 7,195 Total liabilities 1,068,889 299,993 2,260,511 (14,465 ) 3,614,928 Equity: Equity 822,827 1,482,450 645,491 (2,127,941 ) 822,827 Noncontrolling interest — — — 645,094 645,094 Total equity 822,827 1,482,450 645,491 (1,482,847 ) 1,467,921 Total liabilities & equity $ 1,891,716 $ 1,782,443 $ 2,906,002 $ (1,497,312 ) $ 5,082,849 For the Three Months Ended March 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) Revenues: Oil & natural gas sales $ — $ 81,078 $ 60,623 $ — $ 141,701 Other income — — 243 — 243 Total revenues — 81,078 60,866 — 141,944 Costs and expenses: Lease operating — 6,714 35,696 — 42,410 Gathering, processing and transportation — 21,941 9,209 — 31,150 Gathering, processing and transportation - affiliate — 14,187 — — 14,187 Exploration — 2,446 122 — 2,568 Taxes other than income 652 2,212 4,008 — 6,872 Depreciation, depletion and amortization 1,105 58,694 44,429 — 104,228 Impairment of proved oil and natural gas properties — — 8,342 — 8,342 Incentive unit compensation expense (benefit) (21,761 ) — — — (21,761 ) General and administrative 10,759 374 13,524 — 24,657 Accretion of asset retirement obligations — 140 2,707 — 2,847 (Gain) loss on commodity derivatives (36,442 ) — (51,745 ) — (88,187 ) (Gain) loss on sale of properties — 50 (96 ) — (46 ) Other, net — — 119 — 119 Total costs and expenses (45,687 ) 106,758 66,315 — 127,386 Operating income (loss) 45,687 (25,680 ) (5,449 ) — 14,558 Other income (expense): Interest expense, net (11,357 ) — (32,552 ) — (43,909 ) Equity earnings from subsidiaries (17,003 ) — — 17,003 — Other, net — 4 — — 4 Total other income (expense) (28,360 ) 4 (32,552 ) 17,003 (43,905 ) Income before income taxes 17,327 (25,676 ) (38,001 ) 17,003 (29,347 ) Income tax benefit (expense) (11,650 ) 8,713 (96 ) — (3,033 ) Net income (loss) 5,677 (16,963 ) (38,097 ) 17,003 (32,380 ) Net income (loss) attributable to noncontrolling interest — — — (38,057 ) (38,057 ) Net income (loss) attributable to Memorial Resource Development Corp. $ 5,677 $ (16,963 ) $ (38,097 ) $ 55,060 $ 5,677 For the Three Months Ended March 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) Revenues: Oil & natural gas sales $ — $ 87,023 $ 91,949 $ — $ 178,972 Other income — — 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 8,666 — 23,429 Exploration — 726 90 — 816 Taxes other than income — 2,775 6,655 — 9,430 Depreciation, depletion and amortization 968 39,564 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 10,925 2,051 14,511 — 27,487 Accretion of asset retirement obligations — 123 1,634 — 1,757 (Gain) loss on commodity derivatives (108,190 ) — (145,459 ) — (253,649 ) Total costs and expenses (86,073 ) 65,224 229,188 — 208,339 Operating income (loss) 86,073 21,799 (136,370 ) — (28,498 ) Other income (expense): Interest expense, net (9,757 ) — (28,817 ) — (38,574 ) Equity earnings from subsidiaries 7,021 — — (7,021 ) — Other, net — (49 ) 160 — 111 Total other income (expense) (2,736 ) (49 ) (28,657 ) (7,021 ) (38,463 ) Income before income taxes 83,337 21,750 (165,027 ) (7,021 ) (66,961 ) Income tax benefit (expense) (37,445 ) (10,113 ) 2,370 — (45,188 ) Net income (loss) 45,892 11,637 (162,657 ) (7,021 ) (112,149 ) Net income (loss) attributable to noncontrolling interest — — 159 (158,200 ) (158,041 ) Net income (loss) attributable to Memorial Resource Development Corp. $ 45,892 $ 11,637 $ (162,816 ) $ 151,179 $ 45,892 For the Three Months Ended March 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 39,157 $ 17,220 $ 77,006 $ (130 ) $ 133,253 Cash flows from investing activities: Acquisitions of oil and natural gas properties — — — — — Additions to oil and gas properties — (163,645 ) (22,537 ) — (186,182 ) Additions to other property and equipment (194 ) — (95 ) — (289 ) Additions to restricted investments — — (2,136 ) — (2,136 ) Other financial hybrid instruments 6,415 — — — 6,415 Investments in subsidiaries (146,348 ) — — 146,348 — Distributions from subsidiaries 9 — — (9 ) — Proceeds from the sale of oil and gas properties — — 325 — 325 Other — 77 — — 77 Net cash used in investing activities (140,118 ) (163,568 ) (24,443 ) 146,339 (181,790 ) Cash flows from financing activities: Advances on revolving credit facility 147,000 — 28,000 — 175,000 Payments on revolving credit facility (46,000 ) — (72,000 ) — (118,000 ) Repayment of senior notes — — — — — Deferred finance costs (21 ) — (18 ) — (39 ) Capital contributions — 146,348 — (146,348 ) — Contributions from NGP affiliates related to sale of assets — — 26 — 26 Distribution to equity owners — — (8,304 ) 8,304 — Distribution to noncontrolling interests — — — (8,295 ) (8,295 ) Repurchases of equity (225 ) — (30 ) — (255 ) Net cash provided by (used in) financing activities 100,754 146,348 (52,326 ) (146,339 ) 48,437 Net change in cash and cash equivalents (207 ) — 237 (130 ) (100 ) Cash and cash equivalents, beginning of period 2,986 — 599 (1,410 ) 2,175 Cash and cash equivalents, end of period $ 2,779 $ — $ 836 $ (1,540 ) $ 2,075 For the Three Months Ended March 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 16,404 $ 82,434 $ 71,963 $ 1,015 $ 171,816 Cash flows from investing activities: Acquisitions of oil and natural gas properties — — (3,305 ) — (3,305 ) Additions to oil and gas properties — (86,619 ) (74,375 ) — (160,994 ) Additions to other property and equipment (1,687 ) (260 ) — — (1,947 ) Additions to restricted investments — — (1,426 ) — (1,426 ) Investments in subsidiaries (5,580 ) — — 5,580 — Distributions from subsidiaries 78,076 — — (78,076 ) — Net cash used in investing activities 70,809 (86,879 ) (79,106 ) (72,496 ) (167,672 ) Cash flows from financing activities: Advances on revolving credit facility 104,000 — 166,000 — 270,000 Payments on revolving credit facility (143,000 ) — (5,000 ) — (148,000 ) Repayment of senior notes — — (2,914 ) — (2,914 ) Deferred finance costs — — (10 ) — (10 ) MRD equity repurchases (50,000 ) — — — (50,000 ) MEMP equity repurchases — — (28,420 ) — (28,420 ) Capital contributions — 3,668 1,912 (5,580 ) — Distribution to equity owners — — (46,315 ) 46,315 — Distribution to noncontrolling interests — — — (46,239 ) (46,239 ) Distributions to MRD — — (78,000 ) 78,000 — Other — — (7 ) — (7 ) Net cash provided by financing activities (89,000 ) 3,668 7,246 72,496 (5,590 ) Net change in cash and cash equivalents (1,787 ) (777 ) 103 1,015 (1,446 ) Cash and cash equivalents, beginning of period 2,241 3,762 970 (1,015 ) 5,958 Cash and cash equivalents, end of period $ 454 $ 2,985 $ 1,073 $ — $ 4,512 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 18. Subsequent Events MRD Borrowing Base Reaffirmation For additional information, see Note 7. Amendment to MEMP Revolving Credit Facility and Borrowing Base For additional information, see Note 7. Divestiture of MEMP GP On April 27, 2016, we entered into an agreement to sell MEMP GP and related entities to MEMP for $0.75 million in cash. We expect to complete the divestiture by the end of the second quarter of 2016, subject to customary closing conditions. Following completion of the divestiture, we will own no interest in MEMP's outstanding common units, IDRs or general partner interest. We do not expect to recognize a material gain or loss upon deconsolidation of MEMP GP and its subsidiaries. In connection with the completion of the divestiture, we will enter into a transition services agreement with MEMP to manage post-closing separation costs and activities. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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) “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 (v) “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. |
Basis of Presentation | Basis of Presentation Our consolidated financial statements include our accounts and those of our subsidiaries in which we have a controlling interest. Although MEMP is owned 99.9% by its limited partners and 0.1% by MEMP GP, we are required to consolidate MEMP for accounting and financial reporting purposes. See Note 2 and Note 16 for additional information regarding our adoption of the amended consolidation guidance and new disclosures that are now required for variable interest entities. See Note 18 for additional information regarding our pending divestiture of MEMP GP. All material intercompany transactions and balances have been eliminated in preparation of our consolidated financial statements. Our results of operations for the three months ended March 31, 2016 are not necessarily indicative of results expected for the full year. In our opinion, the accompanying unaudited condensed consolidated 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 13). 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 was retrospectively revised for the acquisition by the MEMP Segment of certain assets from the MRD Segment in East Texas in February 2015 for 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. |
Use of Estimates | Use of Estimates The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include, but are not limited to, oil and natural gas reserves; depreciation, depletion, and amortization of proved oil and natural gas properties; future cash flows from oil and natural gas properties; impairment of long-lived assets; realization of long-term prepaid processing fees; fair value of derivatives; fair value of equity compensation; fair values of assets acquired and liabilities assumed in business combinations, income taxes and asset retirement obligations. |
Oil and Natural Gas Properties | Oil and Natural Gas Properties Oil and natural gas properties consisted of the following at the dates indicated (in thousands): March 31, December 31, 2016 2015 (In thousands) Proved oil and natural gas properties $ 5,540,668 $ 5,353,594 Support equipment and facilities 211,640 210,595 Unproved oil and natural gas properties 428,984 418,020 Total oil and natural gas properties $ 6,181,292 $ 5,982,209 At March 31, 2016 and December 31, 2015, we had $137.8 million and $201.0 million, respectively, capitalized in proved oil and natural gas properties related to wells in various stages of drilling and completion, which have been excluded from the depletion base. |
Accrued liabilities | Accrued liabilities Current accrued liabilities consisted of the following at the dates indicated (in thousands): March 31, December 31, 2016 2015 Accrued capital expenditures $ 61,559 $ 48,307 Accrued interest payable 36,845 40,849 Accrued lease operating expense 18,781 18,874 Accrued general and administrative expenses 8,727 5,991 Accrued ad valorem taxes 3,486 1,583 Asset retirement obligation 1,175 1,175 Other miscellaneous, including operator advances 3,425 5,020 Total accrued liabilities $ 133,998 $ 121,799 |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow for the periods presented (in thousands): For the Three Months Ended March 31, 2016 2015 Supplemental cash flows: Cash paid for interest, net of capitalized interest $ 42,131 $ 39,203 Cash paid for taxes 2,000 2,055 Noncash investing and financing activities: Increase (decrease) in capital expenditures in payables and accrued liabilities 13,252 4,589 (Increase) decrease in accounts receivable related to other financial instruments (4,333 ) — Assumptions of asset retirement obligations related to properties acquired or drilled 447 39 |
New Accounting Pronouncements | New Accounting Pronouncements Improvements to Employee Share-Based Payment Accounting . In March 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update to simplify the guidance on employee share-based payment accounting. The update involves several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. Entities will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (“APIC”). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement and the APIC pools will be eliminated. In addition, the new guidance eliminates the requirement that excess tax benefits be realized before companies can recognize them and requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Furthermore, the new guidance will increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. The new guidance requires a company to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows. In addition, companies will now have to elect whether to account for forfeitures on share-based payments by: (i) recognizing forfeitures of awards as they occur or (ii) estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as is currently required. The new guidance is effective for reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, but all of the guidance must be adopted in the same period. The Company is currently assessing the impact the adoption of this new guidance will have on our consolidated financial statements and related disclosures. For the amendments that change the recognition and measurement of share-based payment awards, the new guidance requires transition under a modified retrospective approach, with a cumulative-effect adjustment made to retained earnings as of the beginning of the fiscal period in which the guidance is adopted. Prospective application is required for the accounting for excess tax benefits and tax deficiencies. Entities should apply the new guidance retrospectively for all periods presented related to the classification of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirements. Entities may apply the presentation changes for excess tax benefits in the statement of cash flows either prospectively or retrospectively. Leases. In February 2016, the FASB issued a revision to its lease accounting guidance. The FASB retained a dual model, requiring leases to be classified as either direct financing or operating leases. The classification will be based on criteria that are similar to the current lease accounting treatment. The revised guidance requires lessees to recognize a right-of-use asset and lease liability for all leasing transactions regardless of classification. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The revised guidance must be adopted using a modified retrospective transition and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. The Company is currently evaluating the standard and the impact on the Company’s financial statements and related footnote 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. We adopted this guidance on January 1, 2016 and determined that MEMP was a VIE for which the Company is the primary beneficiary for accounting purposes. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements; however, VIE disclosure requirements are now applicable. See Note 16 for additional information. 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 Accoun26
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Oil and Natural Gas Properties | Oil and natural gas properties consisted of the following at the dates indicated (in thousands): March 31, December 31, 2016 2015 (In thousands) Proved oil and natural gas properties $ 5,540,668 $ 5,353,594 Support equipment and facilities 211,640 210,595 Unproved oil and natural gas properties 428,984 418,020 Total oil and natural gas properties $ 6,181,292 $ 5,982,209 |
Schedule of Accrued Liabilities | Current accrued liabilities consisted of the following at the dates indicated (in thousands): March 31, December 31, 2016 2015 Accrued capital expenditures $ 61,559 $ 48,307 Accrued interest payable 36,845 40,849 Accrued lease operating expense 18,781 18,874 Accrued general and administrative expenses 8,727 5,991 Accrued ad valorem taxes 3,486 1,583 Asset retirement obligation 1,175 1,175 Other miscellaneous, including operator advances 3,425 5,020 Total accrued liabilities $ 133,998 $ 121,799 |
Schedule of Supplemental Cash Flow | Supplemental cash flow for the periods presented (in thousands): For the Three Months Ended March 31, 2016 2015 Supplemental cash flows: Cash paid for interest, net of capitalized interest $ 42,131 $ 39,203 Cash paid for taxes 2,000 2,055 Noncash investing and financing activities: Increase (decrease) in capital expenditures in payables and accrued liabilities 13,252 4,589 (Increase) decrease in accounts receivable related to other financial instruments (4,333 ) — Assumptions of asset retirement obligations related to properties acquired or drilled 447 39 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Transaction-Related Costs | Transaction-related costs, which include costs associated with acquisitions and divestitures, 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, 2016 2015 $ 116 $ 2,580 |
Fair Value Measurements of Fi28
Fair Value Measurements of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and December 31, 2015 for each of the fair value hierarchy levels: Fair Value Measurements at March 31, 2016 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 $ — $ 1,064,865 $ — $ 1,064,865 Interest rate derivatives — 28 — 28 Total assets $ — $ 1,064,893 $ — $ 1,064,893 Liabilities: Commodity derivatives $ — $ 73,316 $ — $ 73,316 Interest rate derivatives — 5,835 — 5,835 Total liabilities $ — $ 79,151 $ — $ 79,151 Fair Value Measurements at December 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 $ — $ 1,136,757 $ — $ 1,136,757 Interest rate derivatives — — — — Total assets $ — $ 1,136,757 $ — $ 1,136,757 Liabilities: Commodity derivatives $ — $ 84,981 $ — $ 84,981 Interest rate derivatives — 2,655 — 2,655 Total liabilities $ — $ 87,636 $ — $ 87,636 |
Risk Management and Derivativ29
Risk Management and Derivative and Other Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Open Commodity Positions | At March 31, 2016, the MRD Segment had the following open commodity positions (excluding embedded derivatives): Remaining 2016 2017 Natural Gas Derivative Contracts: Fixed price swap contracts: Average Monthly Volume (MMBtu) 2,753,333 1,770,000 Weighted-average fixed price $ 4.08 $ 4.24 Collar contracts: Average Monthly Volume (MMBtu) 1,066,667 1,050,000 Weighted-average floor price $ 4.00 $ 4.00 Weighted-average ceiling price $ 4.71 $ 5.06 Purchased put option contracts: Average Monthly Volume (MMBtu) 6,233,333 5,350,000 Weighted-average strike price $ 3.52 $ 3.48 Weighted-average deferred premium $ (0.34 ) $ (0.32 ) TGT Z1 basis swaps: Average Monthly Volume (MMBtu) 1,120,000 200,000 Spread - Henry Hub $ (0.10 ) $ (0.08 ) Crude Oil Derivative Contracts: Fixed price swap contracts: Average Monthly Volume (Bbls) 34,111 28,000 Weighted-average fixed price $ 83.89 $ 84.70 Collar contracts: Average Monthly Volume (Bbls) 26,667 — Weighted-average floor price $ 80.00 $ — Weighted-average ceiling price $ 99.70 $ — NGL Derivative Contracts: Fixed price swap contracts: Average Monthly Volume (Bbls) 356,545 — Weighted-average fixed price $ 39.71 $ — At March 31, 2016, the MRD Segment had the following open embedded derivative positions: Remaining 2016 Oil Hybrid Contracts: Fixed price swap contracts: Average Monthly Volume (Bbls) 25,872 Weighted-average fixed price $ 46.53 Initial net investment price 62.02 Total contract swap price $ 108.55 NGL Hybrid Contracts: Fixed price swap contracts: Average Monthly Volume (Bbls) 89,736 Weighted-average fixed price $ 15.85 Initial net investment price 25.90 Total contract swap price $ 41.75 At March 31, 2016, the MEMP Segment had the following open commodity positions: Remaining 2016 2017 2018 2019 Natural Gas Derivative Contracts: Fixed price swap contracts: Average Monthly Volume (MMBtu) 3,586,331 3,350,067 3,060,000 2,814,583 Weighted-average fixed price $ 4.14 $ 4.06 $ 4.18 $ 4.31 Basis swaps: Average Monthly Volume (MMBtu) 3,572,778 2,210,000 1,315,000 900,000 Spread $ (0.07 ) $ (0.04 ) $ (0.02 ) $ 0.01 Crude Oil Derivative Contracts: Fixed price swap contracts: Average Monthly Volume (Bbls) 304,313 301,600 312,000 160,000 Weighted-average fixed price $ 85.47 $ 85.00 $ 83.74 $ 85.52 Basis swaps: Average Monthly Volume (Bbls) 139,667 67,500 — — Spread $ (10.01 ) $ (7.82 ) $ — $ — NGL Derivative Contracts: Fixed price swap contracts: Average Monthly Volume (Bbls) 210,433 43,300 — — Weighted-average fixed price $ 35.79 $ 37.55 $ — $ — The MEMP Segment basis swaps included in the table above is presented on a disaggregated basis below: Remaining 2016 2017 2018 2019 Natural Gas Derivative Contracts: NGPL TexOk basis swaps: Average Monthly Volume (MMBtu) 2,997,778 1,800,000 1,200,000 900,000 Spread - Henry Hub $ (0.07 ) $ (0.07 ) $ (0.03 ) $ 0.01 HSC basis swaps: Average Monthly Volume (MMBtu) 135,000 115,000 115,000 — Spread - Henry Hub $ 0.07 $ 0.14 $ 0.15 $ — CIG basis swaps: Average Monthly Volume (MMBtu) 170,000 — — — Spread - Henry Hub $ (0.30 ) $ — $ — $ — TETCO STX basis swaps: Average Monthly Volume (MMBtu) 270,000 295,000 — — Spread - Henry Hub $ 0.06 $ 0.03 $ — $ — Crude Oil Derivative Contracts: Midway-Sunset basis swaps: Average Monthly Volume (Bbls) 99,667 37,500 — — Spread - Brent $ (12.29 ) $ (12.20 ) $ — $ — Midland basis swaps: Average Monthly Volume (Bbls) 40,000 30,000 — — Spread - WTI $ (4.34 ) $ (2.35 ) $ — $ — |
Schedule of Entity's Interest Rate Swap Open Positions | At March 31, 2016, MEMP had the following interest rate swap open positions: Remaining Credit Facility 2016 2017 2018 MEMP: Average Monthly Notional (in thousands) $ 400,000 $ 400,000 $ 300,000 Weighted-average fixed rate 0.943 % 1.612 % 1.427 % Floating rate 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, 2016 and December 31, 2015. 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 2016 2015 2016 2015 (In thousands) Commodity contracts Short-term derivative instruments $ 521,982 $ 552,614 $ 48,930 $ 53,939 Interest rate swaps Short-term derivative instruments — — 2,194 1,214 Gross fair value 521,982 552,614 51,124 55,153 Netting arrangements Short-term derivative instruments (49,026 ) (52,303 ) (49,026 ) (52,303 ) Net recorded fair value Short-term derivative instruments $ 472,956 $ 500,311 $ 2,098 $ 2,850 Commodity contracts Long-term derivative instruments $ 542,883 $ 584,143 $ 24,386 $ 31,042 Interest rate swaps Long-term derivative instruments 28 — 3,641 1,441 Gross fair value 542,911 584,143 28,027 32,483 Netting arrangements Long-term derivative instruments (25,866 ) (31,042 ) (25,866 ) (31,042 ) Net recorded fair value Long-term derivative instruments $ 517,045 $ 553,101 $ 2,161 $ 1,441 |
Schedule of Gains and Losses Related to Derivative Instruments | The following table details the gains and losses related to derivative instruments for the periods indicated (in thousands): For the Three Months Ended Statements of March 31, Operations Location 2016 2015 Commodity derivative contracts (Gain) loss on commodity derivatives $ (88,187 ) $ (253,649 ) Interest rate derivatives Interest expense, net 3,682 2,441 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 (in thousands): Asset retirement obligations at beginning of period $ 174,243 Liabilities added from acquisitions or drilling 447 Liabilities settled (615 ) Revision of estimates 199 Liabilities removed upon sale of wells (451 ) Accretion expense 2,847 Asset retirement obligations at end of period 176,670 Less: Current portion 1,175 Asset retirement obligations - long-term portion $ 175,495 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Consolidated Debt Obligations | The following table presents our consolidated debt obligations at the dates indicated: March 31, December 31, 2016 2015 (In thousands) MRD Segment: MRD $2.0 billion revolving credit facility, variable-rate, due June 2019 $ 524,000 $ 423,000 5.875% senior unsecured notes, due July 2022 ("MRD Senior Notes") (1) (4) 600,000 600,000 Unamortized debt issuance costs (10,517 ) (10,936 ) Subtotal 1,113,483 1,012,064 MEMP Segment: MEMP $2.0 billion revolving credit facility, variable-rate, due March 2018 792,000 836,000 7.625% senior unsecured notes, due May 2021 ("2021 Senior Notes") (2) (4) 700,000 700,000 6.875% senior unsecured notes, due August 2022 ("2022 Senior Notes") (3) (4) 496,990 496,990 Unamortized discounts (13,509 ) (14,114 ) Unamortized debt issuance costs (17,497 ) (18,297 ) Subtotal 1,957,984 2,000,579 Total long-term debt $ 3,071,467 $ 3,012,643 (1) The estimated fair value of this fixed-rate debt was $507.0 million and $525.0 million at March 31, 2016 and December 31, 2015, respectively. (2) The estimated fair value of this fixed-rate debt was $203.0 million and $210.0 million at March 31, 2016 and December 31, 2015, respectively. (3) The estimated fair value of this fixed-rate debt was $135.4 million and $149.1 million at March 31, 2016 and December 31, 2015, respectively. (4) 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, 2016 MRD Segment: MRD $2.0 billion revolving credit facility, variable-rate, due June 2019 $ 1,000,000 MEMP Segment: MEMP $2.0 billion revolving credit facility, variable-rate, due March 2018 1,175,000 |
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, 2016 2015 MRD Segment: MRD revolving credit facility 2.26 % 1.87 % MEMP Segment: MEMP revolving credit facility 2.43 % 1.90 % |
Unamortized Deferred Financing Costs On Debt Obligations Table Text Block | Unamortized deferred financing costs associated with our consolidated debt obligations were as follows at the dates indicated: March 31, December 31, 2016 2015 (In thousands) MRD Segment: MRD revolving credit facility $ 4,636 $ 4,976 MRD Senior Notes 10,517 10,936 MEMP Segment: MEMP revolving credit facility 3,289 3,672 2021 Senior Notes 10,665 11,194 2022 Senior Notes 6,832 7,103 $ 35,939 $ 37,881 |
Stockholders' Equity and Nonc32
Stockholders' Equity and Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016: Balance December 31, 2015 205,293,743 Restricted common shares issued (Note 10) 24,069 Restricted common shares repurchased (1) (20,566 ) Restricted common shares forfeited (5,953 ) Balance March 31, 2016 205,291,293 (1) Restricted common shares are generally net-settled by shareholders to cover the required withholding tax upon vesting. Participants surrendered shares with value equivalent to the employee’s minimum statutory obligation for the applicable income and other employment taxes. Total payments remitted for the employees’ tax obligations to the appropriate taxing authorities were approximately $0.3 million. These net-settlements had the effect of shares repurchased by the Company as they reduced the number of shares that would have otherwise been outstanding as a result of the vesting and did not represent an expense to the Company. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Numerator: Net income (loss) available to common stockholders $ 5,632 $ 45,615 Denominator: Weighted average common shares outstanding 203,665 190,705 Incremental treasury stock method shares (1) — 151 Basic EPS $ 0.03 $ 0.24 Diluted EPS (1) $ 0.03 $ 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 each period presented. For the three months ended March 31, 2016, there were approximately 32,000 shares excluded from the computation of diluted EPS under the treasury stock method because the inclusion of such shares would have been anti-dilutive. |
Long-Term Incentive Plans (Tabl
Long-Term Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 (“LTIP”) for the periods presented: Number of Shares Weighted-Average Grant Date Fair Value per Share (1) Restricted common shares outstanding at December 31, 2015 1,668,845 $ 18.89 Granted (2) 24,069 $ 15.58 Forfeited (5,953 ) $ 18.91 Vested (91,038 ) $ 18.32 Restricted common shares outstanding at March 31, 2016 1,595,923 $ 18.87 (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 2016 was $0.4 million based on a grant date market price of $15.58. The following table summarizes information regarding restricted common unit awards granted under the Memorial Production Partners GP LLC Long-Term Incentive Plan (“MEMP LTIP”) for the periods presented: Number of Units Weighted-Average Grant Date Fair Value per Unit (1) Restricted common units outstanding at December 31, 2015 1,368,538 $ 17.61 Granted (2) 50,000 $ 2.41 Forfeited (9,669 ) $ 18.50 Vested (102,600 ) $ 15.96 Restricted common units outstanding at March 31, 2016 1,306,269 $ 17.15 (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 2016 was $0.1 million based on a grant date market price of $2.41. |
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, 2016 2015 $ 3,152 $ 1,486 The following table summarizes the amount of recognized compensation expense associated with the MEMP LTIP awards that are reflected in the accompanying statements of operations for the periods presented (in thousands): For the Three Months Ended March 31, 2016 2015 Equity classified awards Restricted common units $ 2,492 $ 2,341 Liability classified awards Phantom units 76 — $ 2,568 $ 2,341 |
Incentive Units (Tables)
Incentive Units (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 3/31/2016 3/31/2016 Dividend yield 0 % 0 % Expected volatility 56.61 % 56.61 % Risk-free rate 0.61 % 0.61 % Expected life (years) 1.17 1.17 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of Selected Business Segment Information | The following table presents selected business segment information for the periods indicated (in thousands): Other, Adjustments & Consolidated MRD MEMP Eliminations Totals Total revenues: For the Three Months Ended March 31, 2016 $ 81,078 $ 60,866 $ — $ 141,944 For the Three Months Ended March 31, 2015 87,023 92,818 — 179,841 Adjusted EBITDA: (1) For the Three Months Ended March 31, 2016 106,376 81,306 (9 ) 187,673 For the Three Months Ended March 31, 2015 86,830 86,432 (76 ) 173,186 Segment assets: (2) As of March 31, 2016 2,267,650 2,830,102 (839 ) 5,096,913 As of December 31, 2015 2,177,492 2,906,003 (646 ) 5,082,849 Total cash expenditures for additions to long-lived assets: For the Three Months Ended March 31, 2016 163,839 22,632 — 186,471 For the Three Months Ended March 31, 2015 88,566 77,680 — 166,246 (1) Adjustments and eliminations for the three months ended March 31, 2016 and 2015 include cash distributions that MEMP paid to MRD during the three months ended March 31, 2016 and 2015, related to the ownership of partnership interests in MEMP. (2) Adjustments and eliminations primarily represent the elimination of investment in subsidiaries balances at March 31, 2016 and December 31, 2015. |
Schedule of Calculation of Reportable Segment's Adjusted EBITDA | Calculation of Reportable Segments’ Adjusted EBITDA For the Three Months Ended March 31, 2016 Combined MRD MEMP Totals (In thousands) Net income (loss) $ 5,677 $ (38,097 ) $ (32,420 ) Interest expense, net 11,357 32,552 43,909 Income tax expense (benefit) 2,937 96 3,033 DD&A 59,799 44,429 104,228 Impairment of proved oil and natural gas properties — 8,342 8,342 Accretion of AROs 140 2,707 2,847 (Gain) loss on commodity derivative instruments (36,442 ) (51,745 ) (88,187 ) Cash settlements received (paid) on expired commodity derivative and other financial instruments 78,942 80,221 159,163 Transaction related costs 30 86 116 Incentive-based compensation expense (benefit) (18,609 ) 2,568 (16,041 ) Exploration costs 2,446 122 2,568 (Gain) loss on sale of properties 50 (96 ) (46 ) Loss on settlement of AROs — 121 121 Non-cash equity (income) loss from MEMP 40 — 40 Cash distributions from MEMP 9 — 9 Adjusted EBITDA $ 106,376 $ 81,306 $ 187,682 For the Three Months Ended March 31, 2015 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 |
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, 2016 2015 Total Reportable Segments' Adjusted EBITDA $ 187,682 $ 173,262 Adjustments to reconcile Adjusted EBITDA to net income (loss): Interest expense, net (43,909 ) (38,574 ) Income tax benefit (expense) (3,033 ) (45,188 ) DD&A (104,228 ) (91,798 ) Impairment of proved oil and natural gas properties (8,342 ) (251,347 ) Accretion of AROs (2,847 ) (1,757 ) Gains (losses) on commodity derivative instruments 88,187 253,649 Cash settlements paid (received) on expired commodity derivative and other financial instruments (159,163 ) (92,873 ) Gain (loss) on sale of properties 46 — Transaction related costs (116 ) (2,580 ) Incentive-based compensation benefit (expense) 16,041 (14,051 ) Exploration costs (2,568 ) (816 ) Loss on settlement of AROs (121 ) — Cash distributions from MEMP (9 ) (76 ) Net income (loss) $ (32,380 ) $ (112,149 ) |
Schedule of Consolidated Statement of Operations Disaggregated by Reportable Segment | Included below is our consolidated statement of operations disaggregated by reportable segment for the period indicated (in thousands): For the Three Months Ended March 31, 2016 MRD MEMP Other, Adjustments & Eliminations Consolidated Revenues: Oil & natural gas sales $ 81,078 $ 60,623 $ — $ 141,701 Other revenues — 243 — 243 Total revenues 81,078 60,866 — 141,944 Costs and expenses: Lease operating 6,714 35,696 — 42,410 Gathering, processing, and transportation 21,941 9,209 — 31,150 Gathering, processing, and transportation - affiliate 14,187 — — 14,187 Exploration 2,446 122 — 2,568 Taxes other than income 2,864 4,008 — 6,872 Depreciation, depletion, and amortization 59,799 44,429 — 104,228 Impairment of proved oil and natural gas properties — 8,342 — 8,342 Incentive unit compensation expense (benefit) (21,761 ) — — (21,761 ) General and administrative 11,133 13,524 — 24,657 Accretion of asset retirement obligations 140 2,707 — 2,847 (Gain) loss on commodity derivative instruments (36,442 ) (51,745 ) — (88,187 ) (Gain) loss on sale of properties 50 (96 ) — (46 ) Other, net — 119 — 119 Total costs and expenses 61,071 66,315 — 127,386 Operating income (loss) 20,007 (5,449 ) — 14,558 Other income (expense): Interest expense, net (11,357 ) (32,552 ) — (43,909 ) Earnings from equity investments (40 ) — 40 — Other, net 4 — — 4 Total other income (expense) (11,393 ) (32,552 ) 40 (43,905 ) Income (loss) before income taxes 8,614 (38,001 ) 40 (29,347 ) Income tax benefit (expense) (2,937 ) (96 ) — (3,033 ) Net income (loss) $ 5,677 $ (38,097 ) $ 40 $ (32,380 ) For the Three Months Ended March 31, 2015 MRD MEMP Other, Adjustments & Eliminations Consolidated 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 8,666 — 23,429 Exploration 726 90 — 816 Taxes other than income 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 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Reserved Capacity and Applicable Fees | The following table summarizes the reserved capacity and applicable fees associated with this agreement: Period Reserved Capacity (MMBtu/d) Reservation Demand Charge ($/MMBtu) Overrun Charge ($/MMBtu) January 1, 2016 to December 31, 2022 300,000 0.075 0.150 January 1, 2023 to December 31, 2025 200,000 0.075 0.150 |
Summary of Pricing Grid Subject to Annual Escalation for Gas Received | The following pricing grid, subject to annual escalation, would apply to gas received at any of these future receipt points. Reservation Demand Charge ($/MMBtu) Commodity Charge ($/MMBtu) Overrun Charge ($/MMBtu) Total gas receipts ≤ 0.075 0.075 n/a Total gas receipts > contracted reserved capacity n/a n/a 0.150 |
Gross Held-to-Maturity Investments | The following is a summary of the gross held-to-maturity investments held in the trust account as of March 31, 2016 (in thousands): Amortized Investment Cost U.S. Bank Money Market Cash Equivalent $ 146,028 |
Minimum Balances Attributable to Net Working Interest | The trust account must maintain minimum balances as follows (in thousands): June 30, 2016 $ 148,000 December 31, 2016 $ 152,000 |
Condensed Consolidating Finan38
Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets | The following condensed consolidating financial information presents the financial information of the Company on a unconsolidated stand-alone basis and its combined guarantor and combined non-guarantor subsidiaries as of and for the period indicated. Such financial information may not necessarily be indicative of our results of operations, cash flows or financial position had these subsidiaries operated as independent entities. As of March 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2,779 $ — $ 836 $ (1,540 ) $ 2,075 Accounts receivable - trade 14,139 56,820 45,290 (3,525 ) 112,724 Accounts receivable - affiliates 8,244 — — (8,244 ) — Short-term derivative instruments 213,102 — 259,854 — 472,956 Other financial assets 35,358 — — — 35,358 Prepaid expenses and other current assets 2,198 4,406 4,839 — 11,443 Total current assets 275,820 61,226 310,819 (13,309 ) 634,556 Property and equipment, net 14,902 1,845,780 1,917,382 — 3,778,064 Long-term derivative instruments 74,429 — 442,616 — 517,045 Investments in subsidiaries 1,610,811 — — (1,610,811 ) — Other long-term assets 4,637 3,326 159,285 — 167,248 Total assets $ 1,980,599 $ 1,910,332 $ 2,830,102 $ (1,624,120 ) $ 5,096,913 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued liabilities $ 18,182 $ 76,460 $ 68,607 $ (1,540 ) $ 161,709 Accounts payable - affiliates — 12,572 5,137 (8,266 ) 9,443 Revenues payable — 33,145 25,427 — 58,572 Short-term derivative instruments — — 2,098 — 2,098 Total current liabilities 18,182 122,177 101,269 (9,806 ) 231,822 Long-term debt 1,113,483 — 1,957,984 — 3,071,467 Asset retirement obligations — 10,531 164,964 — 175,495 Long-term derivative instruments — — 2,161 — 2,161 Deferred tax liabilities 32,621 163,541 2,158 — 198,320 Other long-term liabilities 6,689 — — — 6,689 Total liabilities 1,170,975 296,249 2,228,536 (9,806 ) 3,685,954 Equity: Equity 809,624 1,614,083 601,566 (2,215,649 ) 809,624 Noncontrolling interest — — — 601,335 601,335 Total equity 809,624 1,614,083 601,566 (1,614,314 ) 1,410,959 Total liabilities & equity $ 1,980,599 $ 1,910,332 $ 2,830,102 $ (1,624,120 ) $ 5,096,913 As of December 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2,986 $ — $ 599 $ (1,410 ) $ 2,175 Accounts receivable- trade 7,850 49,537 60,238 (3,530 ) 114,095 Accounts receivable - affiliates 9,525 — — (9,525 ) — Short-term derivative instruments 227,991 — 272,320 — 500,311 Other financial assets 46,106 — — — 46,106 Prepaid expenses and other current assets 2,318 3,670 7,029 — 13,017 Total current assets 296,776 53,207 340,186 (14,465 ) 675,704 Property and equipment, net 15,825 1,729,236 1,946,323 — 3,691,384 Long-term derivative instruments 91,292 — 461,809 — 553,101 Investments in subsidiaries 1,482,847 — — (1,482,847 ) — Other long-term assets 4,976 — 157,684 — 162,660 Total assets $ 1,891,716 $ 1,782,443 $ 2,906,002 $ (1,497,312 ) $ 5,082,849 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ 26,796 $ 69,279 $ 61,715 $ (2,142 ) $ 155,648 Accounts payable - affiliates — 14,193 3,339 (12,323 ) 5,209 Revenues payable 80 35,463 25,504 — 61,047 Short-term derivative instruments — — 2,850 — 2,850 Total current liabilities 26,876 118,935 93,408 (14,465 ) 224,754 Long-term debt 1,012,064 — 2,000,579 — 3,012,643 Asset retirement obligations — 10,079 162,989 — 173,068 Long-term derivative instruments — — 1,441 — 1,441 Deferred tax liabilities 22,754 170,979 2,094 — 195,827 Other long-term liabilities 7,195 — — — 7,195 Total liabilities 1,068,889 299,993 2,260,511 (14,465 ) 3,614,928 Equity: Equity 822,827 1,482,450 645,491 (2,127,941 ) 822,827 Noncontrolling interest — — — 645,094 645,094 Total equity 822,827 1,482,450 645,491 (1,482,847 ) 1,467,921 Total liabilities & equity $ 1,891,716 $ 1,782,443 $ 2,906,002 $ (1,497,312 ) $ 5,082,849 |
Condensed Consolidating Statements of Operations | For the Three Months Ended March 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) Revenues: Oil & natural gas sales $ — $ 81,078 $ 60,623 $ — $ 141,701 Other income — — 243 — 243 Total revenues — 81,078 60,866 — 141,944 Costs and expenses: Lease operating — 6,714 35,696 — 42,410 Gathering, processing and transportation — 21,941 9,209 — 31,150 Gathering, processing and transportation - affiliate — 14,187 — — 14,187 Exploration — 2,446 122 — 2,568 Taxes other than income 652 2,212 4,008 — 6,872 Depreciation, depletion and amortization 1,105 58,694 44,429 — 104,228 Impairment of proved oil and natural gas properties — — 8,342 — 8,342 Incentive unit compensation expense (benefit) (21,761 ) — — — (21,761 ) General and administrative 10,759 374 13,524 — 24,657 Accretion of asset retirement obligations — 140 2,707 — 2,847 (Gain) loss on commodity derivatives (36,442 ) — (51,745 ) — (88,187 ) (Gain) loss on sale of properties — 50 (96 ) — (46 ) Other, net — — 119 — 119 Total costs and expenses (45,687 ) 106,758 66,315 — 127,386 Operating income (loss) 45,687 (25,680 ) (5,449 ) — 14,558 Other income (expense): Interest expense, net (11,357 ) — (32,552 ) — (43,909 ) Equity earnings from subsidiaries (17,003 ) — — 17,003 — Other, net — 4 — — 4 Total other income (expense) (28,360 ) 4 (32,552 ) 17,003 (43,905 ) Income before income taxes 17,327 (25,676 ) (38,001 ) 17,003 (29,347 ) Income tax benefit (expense) (11,650 ) 8,713 (96 ) — (3,033 ) Net income (loss) 5,677 (16,963 ) (38,097 ) 17,003 (32,380 ) Net income (loss) attributable to noncontrolling interest — — — (38,057 ) (38,057 ) Net income (loss) attributable to Memorial Resource Development Corp. $ 5,677 $ (16,963 ) $ (38,097 ) $ 55,060 $ 5,677 For the Three Months Ended March 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) Revenues: Oil & natural gas sales $ — $ 87,023 $ 91,949 $ — $ 178,972 Other income — — 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 8,666 — 23,429 Exploration — 726 90 — 816 Taxes other than income — 2,775 6,655 — 9,430 Depreciation, depletion and amortization 968 39,564 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 10,925 2,051 14,511 — 27,487 Accretion of asset retirement obligations — 123 1,634 — 1,757 (Gain) loss on commodity derivatives (108,190 ) — (145,459 ) — (253,649 ) Total costs and expenses (86,073 ) 65,224 229,188 — 208,339 Operating income (loss) 86,073 21,799 (136,370 ) — (28,498 ) Other income (expense): Interest expense, net (9,757 ) — (28,817 ) — (38,574 ) Equity earnings from subsidiaries 7,021 — — (7,021 ) — Other, net — (49 ) 160 — 111 Total other income (expense) (2,736 ) (49 ) (28,657 ) (7,021 ) (38,463 ) Income before income taxes 83,337 21,750 (165,027 ) (7,021 ) (66,961 ) Income tax benefit (expense) (37,445 ) (10,113 ) 2,370 — (45,188 ) Net income (loss) 45,892 11,637 (162,657 ) (7,021 ) (112,149 ) Net income (loss) attributable to noncontrolling interest — — 159 (158,200 ) (158,041 ) Net income (loss) attributable to Memorial Resource Development Corp. $ 45,892 $ 11,637 $ (162,816 ) $ 151,179 $ 45,892 |
Condensed Consolidating Statements of Cash Flows | For the Three Months Ended March 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 39,157 $ 17,220 $ 77,006 $ (130 ) $ 133,253 Cash flows from investing activities: Acquisitions of oil and natural gas properties — — — — — Additions to oil and gas properties — (163,645 ) (22,537 ) — (186,182 ) Additions to other property and equipment (194 ) — (95 ) — (289 ) Additions to restricted investments — — (2,136 ) — (2,136 ) Other financial hybrid instruments 6,415 — — — 6,415 Investments in subsidiaries (146,348 ) — — 146,348 — Distributions from subsidiaries 9 — — (9 ) — Proceeds from the sale of oil and gas properties — — 325 — 325 Other — 77 — — 77 Net cash used in investing activities (140,118 ) (163,568 ) (24,443 ) 146,339 (181,790 ) Cash flows from financing activities: Advances on revolving credit facility 147,000 — 28,000 — 175,000 Payments on revolving credit facility (46,000 ) — (72,000 ) — (118,000 ) Repayment of senior notes — — — — — Deferred finance costs (21 ) — (18 ) — (39 ) Capital contributions — 146,348 — (146,348 ) — Contributions from NGP affiliates related to sale of assets — — 26 — 26 Distribution to equity owners — — (8,304 ) 8,304 — Distribution to noncontrolling interests — — — (8,295 ) (8,295 ) Repurchases of equity (225 ) — (30 ) — (255 ) Net cash provided by (used in) financing activities 100,754 146,348 (52,326 ) (146,339 ) 48,437 Net change in cash and cash equivalents (207 ) — 237 (130 ) (100 ) Cash and cash equivalents, beginning of period 2,986 — 599 (1,410 ) 2,175 Cash and cash equivalents, end of period $ 2,779 $ — $ 836 $ (1,540 ) $ 2,075 For the Three Months Ended March 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 16,404 $ 82,434 $ 71,963 $ 1,015 $ 171,816 Cash flows from investing activities: Acquisitions of oil and natural gas properties — — (3,305 ) — (3,305 ) Additions to oil and gas properties — (86,619 ) (74,375 ) — (160,994 ) Additions to other property and equipment (1,687 ) (260 ) — — (1,947 ) Additions to restricted investments — — (1,426 ) — (1,426 ) Investments in subsidiaries (5,580 ) — — 5,580 — Distributions from subsidiaries 78,076 — — (78,076 ) — Net cash used in investing activities 70,809 (86,879 ) (79,106 ) (72,496 ) (167,672 ) Cash flows from financing activities: Advances on revolving credit facility 104,000 — 166,000 — 270,000 Payments on revolving credit facility (143,000 ) — (5,000 ) — (148,000 ) Repayment of senior notes — — (2,914 ) — (2,914 ) Deferred finance costs — — (10 ) — (10 ) MRD equity repurchases (50,000 ) — — — (50,000 ) MEMP equity repurchases — — (28,420 ) — (28,420 ) Capital contributions — 3,668 1,912 (5,580 ) — Distribution to equity owners — — (46,315 ) 46,315 — Distribution to noncontrolling interests — — — (46,239 ) (46,239 ) Distributions to MRD — — (78,000 ) 78,000 — Other — — (7 ) — (7 ) Net cash provided by financing activities (89,000 ) 3,668 7,246 72,496 (5,590 ) Net change in cash and cash equivalents (1,787 ) (777 ) 103 1,015 (1,446 ) Cash and cash equivalents, beginning of period 2,241 3,762 970 (1,015 ) 5,958 Cash and cash equivalents, end of period $ 454 $ 2,985 $ 1,073 $ — $ 4,512 |
Background, Organization and 39
Background, Organization and Basis of Presentation - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended |
Feb. 28, 2015USD ($) | Mar. 31, 2016Segment | |
Consolidation And Basis Of Presentation [Line Items] | ||
Number of reportable business segments | Segment | 2 | |
MEMP [Member] | ||
Consolidation And Basis Of Presentation [Line Items] | ||
Equity transfer from stockholders’ equity to noncontrolling interest | $ | $ 172.9 | |
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% |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Schedule of Oil and Natural Gas Properties (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Proved oil and natural gas properties | $ 5,540,668 | $ 5,353,594 |
Support equipment and facilities | 211,640 | 210,595 |
Unproved oil and natural gas properties | 428,984 | 418,020 |
Total oil and natural gas properties | $ 6,181,292 | $ 5,982,209 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Capitalized in proved oil and natural gas properties | $ 137.8 | $ 201 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Accrued capital expenditures | $ 61,559 | $ 48,307 |
Accrued interest payable | 36,845 | 40,849 |
Accrued lease operating expense | 18,781 | 18,874 |
Accrued general and administrative expenses | 8,727 | 5,991 |
Accrued ad valorem taxes | 3,486 | 1,583 |
Asset retirement obligation | 1,175 | 1,175 |
Other miscellaneous, including operator advances | 3,425 | 5,020 |
Total accrued liabilities | $ 133,998 | $ 121,799 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Schedule of Supplemental Cash Flow (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental cash flows: | ||
Cash paid for interest, net of capitalized interest | $ 42,131 | $ 39,203 |
Cash paid for taxes | 2,000 | 2,055 |
Noncash investing and financing activities: | ||
Increase (decrease) in capital expenditures in payables and accrued liabilities | 13,252 | 4,589 |
(Increase) decrease in accounts receivable related to other financial instruments | (4,333) | 0 |
Assumptions of asset retirement obligations related to properties acquired or drilled | $ 447 | $ 39 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Transaction Related Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Business Acquisition [Line Items] | ||
Acquisition related costs | $ 116 | $ 2,580 |
General and administrative expense [Member] | ||
Business Acquisition [Line Items] | ||
Acquisition related costs | $ 116 | $ 2,580 |
Acquisitions and Divestitures45
Acquisitions and Divestitures - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2016AcquisitionDivestiture | Mar. 31, 2015AcquisitionDivestiture | |
Business Combinations [Abstract] | ||
Number of material acquisitions | Acquisition | 0 | 0 |
Number of divestitures | Divestiture | 0 | 0 |
Fair Value Measurements of Fi46
Fair Value Measurements of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Fair value of derivative asset | $ 1,064,893 | $ 1,136,757 |
Liabilities: | ||
Fair value of derivative liability | 79,151 | 87,636 |
Quoted Prices in Active Market (Level 1) [Member] | ||
Assets: | ||
Fair value of derivative asset | 0 | 0 |
Liabilities: | ||
Fair value of derivative liability | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Fair value of derivative asset | 1,064,893 | 1,136,757 |
Liabilities: | ||
Fair value of derivative liability | 79,151 | 87,636 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Fair value of derivative asset | 0 | 0 |
Liabilities: | ||
Fair value of derivative liability | 0 | 0 |
Commodity derivatives [Member] | ||
Assets: | ||
Fair value of derivative asset | 1,064,865 | 1,136,757 |
Liabilities: | ||
Fair value of derivative liability | 73,316 | 84,981 |
Commodity derivatives [Member] | Quoted Prices in Active Market (Level 1) [Member] | ||
Assets: | ||
Fair value of derivative asset | 0 | 0 |
Liabilities: | ||
Fair value of derivative liability | 0 | 0 |
Commodity derivatives [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Fair value of derivative asset | 1,064,865 | 1,136,757 |
Liabilities: | ||
Fair value of derivative liability | 73,316 | 84,981 |
Commodity derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Fair value of derivative asset | 0 | 0 |
Liabilities: | ||
Fair value of derivative liability | 0 | 0 |
Interest rate derivatives [Member] | ||
Assets: | ||
Fair value of derivative asset | 28 | 0 |
Liabilities: | ||
Fair value of derivative liability | 5,835 | 2,655 |
Interest rate derivatives [Member] | Quoted Prices in Active Market (Level 1) [Member] | ||
Assets: | ||
Fair value of derivative asset | 0 | 0 |
Liabilities: | ||
Fair value of derivative liability | 0 | 0 |
Interest rate derivatives [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Fair value of derivative asset | 28 | 0 |
Liabilities: | ||
Fair value of derivative liability | 5,835 | 2,655 |
Interest rate derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Fair value of derivative asset | 0 | 0 |
Liabilities: | ||
Fair value of derivative liability | $ 0 | $ 0 |
Fair Value Measurements of Fi47
Fair Value Measurements of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment of proved oil and natural gas properties | $ 8,342 | $ 251,347 |
MEMP [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment of proved oil and natural gas properties | 8,300 | $ 251,300 |
Carrying value of properties after impairment charges | $ 11,000 |
Risk Management and Derivativ48
Risk Management and Derivative and Other Financial Instruments - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Feb. 28, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Deferred premiums | $ 5,300,000 | ||
Other financial assets | 35,358,000 | $ 46,106,000 | |
Cash collateral received or pledged | 0 | ||
MRD Segment [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 | 234,600,000 | ||
Effect netting arrangements, counterparty exposure | 88,600,000 | ||
Derivative asset | 322,900,000 | ||
Cash settlement receipt | $ 92,300,000 | ||
MRD Segment [Member] | Single Counterparty [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effect netting arrangements, counterparty exposure | 61,500,000 | ||
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 | 332,200,000 | ||
Effect netting arrangements, counterparty exposure | 369,100,000 | ||
Derivative asset | 698,200,000 | ||
Cash settlement receipt | $ 27,100,000 | ||
MEMP [Member] | Two Counterparty [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effect netting arrangements, counterparty exposure | $ 213,500,000 |
Risk Management and Derivativ49
Risk Management and Derivative and Other Financial Instruments - Schedule of Open Commodity Positions Excluding Embedded Derivatives (Detail) - MRD Segment [Member] | 3 Months Ended |
Mar. 31, 2016MMBTU$ / MMBTUbbl | |
2016 [Member] | Natural Gas Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 2,753,333 |
Weighted-average fixed price | 4.08 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | Collar contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 1,066,667 |
Weighted-average floor price | 4 |
Weighted-average ceiling price | 4.71 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | Put Option [Member] | Purchased [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 6,233,333 |
Weighted-average strike price | 3.52 |
Weighted-average deferred premium | (0.34) |
2016 [Member] | Natural Gas Derivative Contracts [Member] | TGT Z1 basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 1,120,000 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | TGT Z1 basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | (0.10) |
2016 [Member] | Crude Oil Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 83.89 |
Average Monthly Volume (Bbls) | bbl | 34,111 |
2016 [Member] | Crude Oil Derivative Contracts [Member] | Collar contracts [Member] | |
Derivative [Line Items] | |
Weighted-average floor price | 80 |
Weighted-average ceiling price | 99.70 |
Average Monthly Volume (Bbls) | bbl | 26,667 |
2016 [Member] | NGL Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 39.71 |
Average Monthly Volume (Bbls) | bbl | 356,545 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 1,770,000 |
Weighted-average fixed price | 4.24 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | Collar contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 1,050,000 |
Weighted-average floor price | 4 |
Weighted-average ceiling price | 5.06 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | Put Option [Member] | Purchased [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 5,350,000 |
Weighted-average strike price | 3.48 |
Weighted-average deferred premium | (0.32) |
2017 [Member] | Natural Gas Derivative Contracts [Member] | TGT Z1 basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 200,000 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | TGT Z1 basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | (0.08) |
2017 [Member] | Crude Oil Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 84.70 |
Average Monthly Volume (Bbls) | bbl | 28,000 |
2017 [Member] | Crude Oil Derivative Contracts [Member] | Collar contracts [Member] | |
Derivative [Line Items] | |
Weighted-average floor price | 0 |
Weighted-average ceiling price | 0 |
Average Monthly Volume (Bbls) | bbl | 0 |
2017 [Member] | NGL Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | 0 |
Average Monthly Volume (Bbls) | bbl | 0 |
Risk Management and Derivativ50
Risk Management and Derivative and Other Financial Instruments - Schedule of Open Embedded Derivative Positions (Detail) - 2016 [Member] - MRD Segment [Member] - Fixed price swap contracts [Member] | 3 Months Ended |
Mar. 31, 2016$ / bblbbl | |
Oil Hybrid Contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (Bbls) | bbl | 25,872 |
Weighted-average fixed price | 46.53 |
Initial net investment price | 62.02 |
Total contract swap price | 108.55 |
NGL Hybrid Contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (Bbls) | bbl | 89,736 |
Weighted-average fixed price | 15.85 |
Initial net investment price | 25.90 |
Total contract swap price | 41.75 |
Risk Management and Derivativ51
Risk Management and Derivative and Other Financial Instruments - Schedule of Open Commodity Positions (Detail) - MEMP [Member] | 3 Months Ended |
Mar. 31, 2016MMBTU$ / MMBTU$ / bblbbl | |
2016 [Member] | Natural Gas Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 3,586,331 |
Weighted-average fixed price | $ / MMBTU | 4.14 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 3,572,778 |
Spread | $ / MMBTU | (0.07) |
2016 [Member] | Crude Oil Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | $ / bbl | 85.47 |
Average Monthly Volume (Bbls) | bbl | 304,313 |
2016 [Member] | Crude Oil Derivative Contracts [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Spread | $ / bbl | (10.01) |
Average Monthly Volume (Bbls) | bbl | 139,667 |
2016 [Member] | NGL Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | $ / bbl | 35.79 |
Average Monthly Volume (Bbls) | bbl | 210,433 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 3,350,067 |
Weighted-average fixed price | $ / MMBTU | 4.06 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 2,210,000 |
Spread | $ / MMBTU | (0.04) |
2017 [Member] | Crude Oil Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | $ / bbl | 85 |
Average Monthly Volume (Bbls) | bbl | 301,600 |
2017 [Member] | Crude Oil Derivative Contracts [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Spread | $ / bbl | (7.82) |
Average Monthly Volume (Bbls) | bbl | 67,500 |
2017 [Member] | NGL Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | $ / bbl | 37.55 |
Average Monthly Volume (Bbls) | bbl | 43,300 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 3,060,000 |
Weighted-average fixed price | $ / MMBTU | 4.18 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 1,315,000 |
Spread | $ / MMBTU | (0.02) |
2018 [Member] | Crude Oil Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | $ / bbl | 83.74 |
Average Monthly Volume (Bbls) | bbl | 312,000 |
2018 [Member] | Crude Oil Derivative Contracts [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Spread | $ / bbl | 0 |
Average Monthly Volume (Bbls) | bbl | 0 |
2018 [Member] | NGL Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | $ / bbl | 0 |
Average Monthly Volume (Bbls) | bbl | 0 |
2019 [Member] | Natural Gas Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 2,814,583 |
Weighted-average fixed price | $ / MMBTU | 4.31 |
2019 [Member] | Natural Gas Derivative Contracts [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 900,000 |
Spread | $ / MMBTU | 0.01 |
2019 [Member] | Crude Oil Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | $ / bbl | 85.52 |
Average Monthly Volume (Bbls) | bbl | 160,000 |
2019 [Member] | Crude Oil Derivative Contracts [Member] | Basis Swaps [Member] | |
Derivative [Line Items] | |
Spread | $ / bbl | 0 |
Average Monthly Volume (Bbls) | bbl | 0 |
2019 [Member] | NGL Derivative Contracts [Member] | Fixed price swap contracts [Member] | |
Derivative [Line Items] | |
Weighted-average fixed price | $ / bbl | 0 |
Average Monthly Volume (Bbls) | bbl | 0 |
Risk Management and Derivativ52
Risk Management and Derivative and Other Financial Instruments - Schedule of Swaps on Disaggregated Basis (Detail) - MEMP [Member] | 3 Months Ended |
Mar. 31, 2016MMBTU$ / MMBTU$ / bblbbl | |
2016 [Member] | Natural Gas Derivative Contracts [Member] | NGPL TexOk basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 2,997,778 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | NGPL TexOk basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | (0.07) |
2016 [Member] | Natural Gas Derivative Contracts [Member] | HSC basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 135,000 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | HSC basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | 0.07 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | CIG basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 170,000 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | CIG basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | (0.30) |
2016 [Member] | Natural Gas Derivative Contracts [Member] | TETCO STX basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 270,000 |
2016 [Member] | Natural Gas Derivative Contracts [Member] | TETCO STX basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | 0.06 |
2016 [Member] | Crude Oil Derivative Contracts [Member] | Midway-Sunset basis swaps [Member] | |
Derivative [Line Items] | |
Spread | $ / bbl | (12.29) |
Average Monthly Volume (Bbls) | bbl | 99,667 |
2016 [Member] | Crude Oil Derivative Contracts [Member] | Midland Basis Swap [Member] | |
Derivative [Line Items] | |
Spread | $ / bbl | (4.34) |
Average Monthly Volume (Bbls) | bbl | 40,000 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | NGPL TexOk basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 1,800,000 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | NGPL TexOk basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | (0.07) |
2017 [Member] | Natural Gas Derivative Contracts [Member] | HSC basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 115,000 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | HSC basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | 0.14 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | CIG basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 0 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | CIG basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | 0 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | TETCO STX basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 295,000 |
2017 [Member] | Natural Gas Derivative Contracts [Member] | TETCO STX basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | 0.03 |
2017 [Member] | Crude Oil Derivative Contracts [Member] | Midway-Sunset basis swaps [Member] | |
Derivative [Line Items] | |
Spread | $ / bbl | (12.20) |
Average Monthly Volume (Bbls) | bbl | 37,500 |
2017 [Member] | Crude Oil Derivative Contracts [Member] | Midland Basis Swap [Member] | |
Derivative [Line Items] | |
Spread | $ / bbl | (2.35) |
Average Monthly Volume (Bbls) | bbl | 30,000 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | NGPL TexOk basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 1,200,000 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | NGPL TexOk basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | (0.03) |
2018 [Member] | Natural Gas Derivative Contracts [Member] | HSC basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 115,000 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | HSC basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | 0.15 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | CIG basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 0 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | CIG basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | 0 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | TETCO STX basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 0 |
2018 [Member] | Natural Gas Derivative Contracts [Member] | TETCO STX basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | 0 |
2018 [Member] | Crude Oil Derivative Contracts [Member] | Midway-Sunset basis swaps [Member] | |
Derivative [Line Items] | |
Spread | $ / bbl | 0 |
Average Monthly Volume (Bbls) | bbl | 0 |
2018 [Member] | Crude Oil Derivative Contracts [Member] | Midland Basis Swap [Member] | |
Derivative [Line Items] | |
Spread | $ / bbl | 0 |
Average Monthly Volume (Bbls) | bbl | 0 |
2019 [Member] | Natural Gas Derivative Contracts [Member] | NGPL TexOk basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 900,000 |
2019 [Member] | Natural Gas Derivative Contracts [Member] | NGPL TexOk basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | 0.01 |
2019 [Member] | Natural Gas Derivative Contracts [Member] | HSC basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 0 |
2019 [Member] | Natural Gas Derivative Contracts [Member] | HSC basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | 0 |
2019 [Member] | Natural Gas Derivative Contracts [Member] | CIG basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 0 |
2019 [Member] | Natural Gas Derivative Contracts [Member] | CIG basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | 0 |
2019 [Member] | Natural Gas Derivative Contracts [Member] | TETCO STX basis swaps [Member] | |
Derivative [Line Items] | |
Average Monthly Volume (MMBtu) | MMBTU | 0 |
2019 [Member] | Natural Gas Derivative Contracts [Member] | TETCO STX basis swaps [Member] | Henry Hub [Member] | |
Derivative [Line Items] | |
Spread | $ / MMBTU | 0 |
2019 [Member] | Crude Oil Derivative Contracts [Member] | Midway-Sunset basis swaps [Member] | |
Derivative [Line Items] | |
Spread | $ / bbl | 0 |
Average Monthly Volume (Bbls) | bbl | 0 |
2019 [Member] | Crude Oil Derivative Contracts [Member] | Midland Basis Swap [Member] | |
Derivative [Line Items] | |
Spread | $ / bbl | 0 |
Average Monthly Volume (Bbls) | bbl | 0 |
Risk Management and Derivativ53
Risk Management and Derivative and Other Financial Instruments - Schedule of Entity's Interest Rate Swap Open Positions (Detail) - MEMP [Member] - Interest rate swaps [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
2016 [Member] | |
Derivative [Line Items] | |
Average Monthly Notional | $ 400,000 |
Weighted-average fixed rate | 0.943% |
Floating rate | 1 Month LIBOR |
2017 [Member] | |
Derivative [Line Items] | |
Average Monthly Notional | $ 400,000 |
Weighted-average fixed rate | 1.612% |
Floating rate | 1 Month LIBOR |
2018 [Member] | |
Derivative [Line Items] | |
Average Monthly Notional | $ 300,000 |
Weighted-average fixed rate | 1.427% |
Floating rate | 1 Month LIBOR |
Risk Management and Derivativ54
Risk Management and Derivative and Other Financial Instruments - Summary of Gross Fair Value and Net Recorded Fair Value of Derivative Instruments by Appropriate Balance Sheet Classification (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Net recorded fair value | $ 472,956 | $ 500,311 |
Asset Derivatives, Net recorded fair value | 517,045 | 553,101 |
Liability Derivatives, Net recorded fair value | 2,098 | 2,850 |
Liability Derivatives, Net recorded fair value | 2,161 | 1,441 |
Short-term derivative instruments [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Gross fair value | 521,982 | 552,614 |
Asset Derivatives, Netting arrangements | (49,026) | (52,303) |
Asset Derivatives, Net recorded fair value | 472,956 | 500,311 |
Liability Derivatives, Gross fair value | 51,124 | 55,153 |
Liability Derivatives, Netting arrangements | (49,026) | (52,303) |
Liability Derivatives, Net recorded fair value | 2,098 | 2,850 |
Short-term derivative instruments [Member] | Commodity derivatives [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Gross fair value | 521,982 | 552,614 |
Liability Derivatives, Gross fair value | 48,930 | 53,939 |
Short-term derivative instruments [Member] | Interest rate swaps [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Gross fair value | 0 | 0 |
Liability Derivatives, Gross fair value | 2,194 | 1,214 |
Long-term derivative instruments [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Gross fair value | 542,911 | 584,143 |
Asset Derivatives, Netting arrangements | (25,866) | (31,042) |
Asset Derivatives, Net recorded fair value | 517,045 | 553,101 |
Liability Derivatives, Gross fair value | 28,027 | 32,483 |
Liability Derivatives, Netting arrangements | (25,866) | (31,042) |
Liability Derivatives, Net recorded fair value | 2,161 | 1,441 |
Long-term derivative instruments [Member] | Commodity derivatives [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Gross fair value | 542,883 | 584,143 |
Liability Derivatives, Gross fair value | 24,386 | 31,042 |
Long-term derivative instruments [Member] | Interest rate swaps [Member] | ||
Derivative Instruments and Hedges, Assets [Abstract] | ||
Asset Derivatives, Gross fair value | 28 | 0 |
Liability Derivatives, Gross fair value | $ 3,641 | $ 1,441 |
Risk Management and Derivativ55
Risk Management and Derivative and Other Financial Instruments - Schedule of Gains and Losses Related to Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | ||
(Gain) loss on commodity derivative instruments | $ (88,187) | $ (253,649) |
Interest expense, net | 43,909 | 38,574 |
Commodity derivative contracts [Member] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | ||
(Gain) loss on commodity derivative instruments | (88,187) | (253,649) |
Interest rate derivatives [Member] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | ||
Interest expense, net | $ 3,682 | $ 2,441 |
Asset Retirement Obligations -
Asset Retirement Obligations - Summary of Changes in Asset Retirement Obligations (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligations at beginning of period | $ 174,243 | ||
Liabilities added from acquisitions or drilling | 447 | ||
Liabilities settled | (615) | ||
Revision of estimates | 199 | ||
Liabilities removed upon sale of wells | (451) | ||
Accretion expense | 2,847 | $ 1,757 | |
Asset retirement obligations at end of period | 176,670 | ||
Less: Current portion | 1,175 | $ 1,175 | |
Asset retirement obligations | $ 175,495 | $ 173,068 |
Long Term Debt - Consolidated D
Long Term Debt - Consolidated Debt Obligations (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (35,939) | $ (37,881) | |
Long-term debt | 3,071,467 | 3,012,643 | |
MRD Segment [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | (10,517) | (10,936) | |
Long-term debt | 1,113,483 | 1,012,064 | |
MRD Segment [Member] | 2.0 Billion Revolving Credit Facility Due June 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility | 524,000 | 423,000 | |
Unamortized debt issuance costs | (4,636) | (4,976) | |
MRD Segment [Member] | 5.875% Senior Unsecured Notes Due July 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | [1],[2] | 600,000 | 600,000 |
MEMP [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized discounts | (13,509) | (14,114) | |
Unamortized debt issuance costs | (17,497) | (18,297) | |
Long-term debt | 1,957,984 | 2,000,579 | |
MEMP [Member] | 2.0 Billion Revolving Credit Facility Due March 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility | 792,000 | 836,000 | |
Unamortized debt issuance costs | (3,289) | (3,672) | |
MEMP [Member] | 7.625% senior unsecured notes, due May 2021 ("2021 Senior Notes") [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | [1],[3] | 700,000 | 700,000 |
Unamortized debt issuance costs | (10,665) | (11,194) | |
MEMP [Member] | 6.875% Senior Unsecured Notes Due August 2022 ("2022 Senior Notes") [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | [1],[4] | 496,990 | 496,990 |
Unamortized debt issuance costs | $ (6,832) | $ (7,103) | |
[1] | 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 $507.0 million and $525.0 million at March 31, 2016 and December 31, 2015, respectively. | ||
[3] | The estimated fair value of this fixed-rate debt was $203.0 million and $210.0 million at March 31, 2016 and December 31, 2015, respectively. | ||
[4] | The estimated fair value of this fixed-rate debt was $135.4 million and $149.1 million at March 31, 2016 and December 31, 2015, respectively. |
Long Term Debt - Consolidated58
Long Term Debt - Consolidated Debt Obligations (Parenthetical) (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
MRD Segment [Member] | 2.0 Billion Revolving Credit Facility Due June 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 2,000,000,000 | |
Maturity date | Jun. 18, 2019 | |
MRD Segment [Member] | 5.875% Senior Unsecured Notes Due July 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jul. 1, 2022 | |
Debt interest rate | 5.875% | |
Estimated fair value of fixed rate debt | $ 507,000,000 | $ 525,000,000 |
MEMP [Member] | 2.0 Billion Revolving Credit Facility Due March 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 2,000,000,000 | |
Maturity date | Mar. 19, 2018 | |
MEMP [Member] | 7.625% senior unsecured notes, due May 2021 ("2021 Senior Notes") [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | May 1, 2021 | |
Debt interest rate | 7.625% | |
Estimated fair value of fixed rate debt | $ 203,000,000 | 210,000,000 |
MEMP [Member] | 6.875% Senior Unsecured Notes Due August 2022 ("2022 Senior Notes") [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Aug. 1, 2022 | |
Debt interest rate | 6.875% | |
Estimated fair value of fixed rate debt | $ 135,400,000 | $ 149,100,000 |
Long Term Debt - Borrowing Base
Long Term Debt - Borrowing Base Credit Facility (Detail) | Mar. 31, 2016USD ($) |
MRD Segment [Member] | 2.0 Billion Revolving Credit Facility Due June 2019 [Member] | |
Line Of Credit Facility [Line Items] | |
Borrowing base | $ 1,000,000,000 |
MEMP [Member] | 2.0 Billion Revolving Credit Facility Due March 2018 [Member] | |
Line Of Credit Facility [Line Items] | |
Borrowing base | $ 1,175,000,000 |
Long Term Debt - Borrowing Ba60
Long Term Debt - Borrowing Base Credit Facility (Parenthetical) (Detail) | Mar. 31, 2016USD ($) |
MRD Segment [Member] | 2.0 Billion Revolving Credit Facility Due June 2019 [Member] | |
Line Of Credit Facility [Line Items] | |
Revolving credit facility | $ 2,000,000,000 |
MEMP [Member] | 2.0 Billion Revolving Credit Facility Due March 2018 [Member] | |
Line Of Credit Facility [Line Items] | |
Revolving credit facility | $ 2,000,000,000 |
Long Term Debt - Summary of Wei
Long Term Debt - Summary of Weighted-Average Interest Rates Paid On Variable-Rate Debt Obligations (Detail) | Mar. 31, 2016 | Mar. 31, 2015 |
MRD Segment [Member] | 2.0 Billion Revolving Credit Facility Due June 2019 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Revolving credit facility, weighted-average interest rates | 2.26% | 1.87% |
MEMP [Member] | 2.0 Billion Revolving Credit Facility Due March 2018 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Revolving credit facility, weighted-average interest rates | 2.43% | 1.90% |
Long Term Debt - Summary of Una
Long Term Debt - Summary of Unamortized Deferred Financing Costs Associated with Consolidated Debt Obligations (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | $ 35,939 | $ 37,881 |
MRD Segment [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | 10,517 | 10,936 |
MRD Segment [Member] | 2.0 Billion Revolving Credit Facility Due June 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | 4,636 | 4,976 |
MRD Segment [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | 10,517 | 10,936 |
MEMP [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | 17,497 | 18,297 |
MEMP [Member] | 2.0 Billion Revolving Credit Facility Due March 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | 3,289 | 3,672 |
MEMP [Member] | 7.625% senior unsecured notes, due May 2021 ("2021 Senior Notes") [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | 10,665 | 11,194 |
MEMP [Member] | 6.875% Senior Unsecured Notes Due August 2022 ("2022 Senior Notes") [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | $ 6,832 | $ 7,103 |
Long Term Debt - Additional Inf
Long Term Debt - Additional Information (Detail) - USD ($) | Apr. 14, 2016 | Apr. 13, 2016 | Apr. 11, 2016 | Mar. 31, 2016 |
MEMP [Member] | 2.0 Billion Revolving Credit Facility Due March 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowing base | $ 1,175,000,000 | |||
Subsequent Event [Member] | MRD Segment [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowing base | $ 1,000,000,000 | |||
Subsequent Event [Member] | MEMP [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage of revolving unused commitment fee | 0.50% | |||
Line of credit interest rate description | establish a new Applicable Margin (as defined in the MEMP Credit Agreement) that ranges from 1.25% to 2.25% per annum (based on borrowing base usage) on alternate base rate loans and from 2.25% to 3.25% per annum (based on borrowing base usage) on Eurodollar or LIBOR loans and sets the committee fee for the unused portion of the borrowing base to 0.50% per annum regardless of the borrowing base usage | |||
Interest coverage ratio on first lien net secured debt to EBITDAX | 325.00% | |||
Debt covenant, cash distributions to equity holders, pro forma availability minimum | $ 75,000,000 | |||
Debt covenant, cash distributions to equity holders, borrowing base amount percentage prior threshold date | 10.00% | |||
Debt covenant, cash distributions to equity holders, borrowing base amount percentage after threshold date | 15.00% | |||
Debt covenant, cash distributions to equity holders, total debt to EBITDAX ratio | 4.00% | |||
Maximum payment of cash distributions to equity holders amount | $ 4,150,000 | |||
Debt covenant, repurchase, pro forma availability minimum | $ 75,000,000 | |||
Debt covenant, repurchase, borrowing base amount percentage prior threshold date | 10.00% | |||
Debt covenant, repurchase, borrowing base amount percentage after threshold date | 15.00% | |||
Debt covenant, repurchase, total debt to EBITDAX ratio | 3.00% | |||
Maximum amount of proceeds to repurchase outstanding senior unsecured notes or secured lien notes | $ 40,000,000 | |||
Maximum amount of proceeds to repurchase outstanding senior unsecured notes aggregate | $ 60,000,000 | |||
Percentage represents properties mortgaged as collateral security for loans | 90.00% | |||
Debt covenant, unrestricted cash and cash equivalents to prepay loans | $ 25,000,000 | |||
Subsequent Event [Member] | MEMP [Member] | 2.0 Billion Revolving Credit Facility Due March 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowing base | $ 925,000,000 | $ 1,175,000,000 | ||
Subsequent Event [Member] | MEMP [Member] | Issuance of Secured Second Lien Notes Solely in Exchange of Outstanding Senior Unsecured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption description | (ii) such debt shall not (A) have any scheduled principal amortization or have a scheduled maturity date or a date of mandatory redemption in full prior to 180 days after March 19, 2018 | |||
Subsequent Event [Member] | MEMP [Member] | Issuance of Secured Second Lien Notes Solely in Exchange of Outstanding Senior Unsecured Notes [Member] | After March 19, 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption period maximum | 180 days | |||
Subsequent Event [Member] | MEMP [Member] | Minimum | Alternative Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Base rate borrowing percentage | 1.25% | |||
Subsequent Event [Member] | MEMP [Member] | Minimum | Eurodollar or LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Base rate borrowing percentage | 2.25% | |||
Subsequent Event [Member] | MEMP [Member] | Maximum | Issuance of Secured Second Lien Notes Solely in Exchange of Outstanding Senior Unsecured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 600,000,000 | |||
Subsequent Event [Member] | MEMP [Member] | Maximum | Alternative Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Base rate borrowing percentage | 2.25% | |||
Subsequent Event [Member] | MEMP [Member] | Maximum | Eurodollar or LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Base rate borrowing percentage | 3.25% |
Stockholders' Equity and Nonc64
Stockholders' Equity and Noncontrolling Interests - Additional Information (Detail) - USD ($) | Mar. 16, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | 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 | ||||
Stock repurchased and retired during period, shares | 0 | ||||
Stock repurchase program, authorized amount | $ 50,000,000 | ||||
Stock Repurchase Program Expiration Date | 2016-04 | ||||
MEMP [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 | ||||
Stock Repurchase Program Expiration Date | 2015-12 | ||||
MRD Segment [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 |
Stockholders' Equity and Nonc65
Stockholders' Equity and Noncontrolling Interests - Summary of Changes In Common Shares Issued (Detail) | 3 Months Ended |
Mar. 31, 2016shares | |
Class of Stock [Line Items] | |
Beginning Balance | 205,293,743 |
Ending Balance | 205,291,293 |
Common Stock [Member] | |
Class of Stock [Line Items] | |
Restricted common shares issued (Note 10) | 24,069 |
Restricted common shares repurchased | (20,566) |
Restricted common shares forfeited | (5,953) |
Stockholders' Equity and Nonc66
Stockholders' Equity and Noncontrolling Interests - Summary of Changes In Common Shares Issued (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Payments remitted for employees tax obligations | $ 0.3 |
Earnings per Share - Summary of
Earnings per Share - Summary of Calculation of Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Numerator: | |||
Net income (loss) available to common stockholders | $ 5,632 | $ 45,615 | |
Denominator: | |||
Weighted average common shares outstanding | 203,665 | 190,705 | |
Incremental treasury stock method shares | [1] | 0 | 151 |
Basic EPS | $ 0.03 | $ 0.24 | |
Diluted EPS | [1] | $ 0.03 | $ 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 each period presented. For the three months ended March 31, 2016, there were approximately 32,000 shares excluded from the computation of diluted EPS under the treasury stock method because the inclusion of such shares would have been anti-dilutive. |
Earnings per Share - Summary 68
Earnings per Share - Summary of Calculation of Earnings (Loss) Per Share (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2016shares | |
Earnings Per Share [Abstract] | |
Incremental shares excluded from the diluted EPS computation | 32,000 |
Long-Term Incentive Plans - Sum
Long-Term Incentive Plans - Summary of Information Regarding Restricted Common Unit Awards (Detail) - Restricted Stock [Member] | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted common shares outstanding, Number of Shares, Beginning Balance | shares | 1,668,845 |
Granted, Number of Shares | shares | 24,069 |
Forfeited, Number of Shares | shares | (5,953) |
Vested, Number of Shares | shares | (91,038) |
Restricted common shares outstanding, Number of Shares, Ending Balance | shares | 1,595,923 |
Restricted common shares outstanding, Weighted-Average Grant Date Fair Value Per Shares, Beginning Balance | $ / shares | $ 18.89 |
Granted, Weighted-Average Grant Date Fair Value Per Shares | $ / shares | 15.58 |
Forfeited, Weighted-Average Grant Date Fair Value Per Shares | $ / shares | 18.91 |
Vested, Weighted-Average Grant Date Fair Value Per Shares | $ / shares | 18.32 |
Restricted common shares outstanding, Weighted-Average Grant Date Fair Value Per Shares, Ending Balance | $ / shares | $ 18.87 |
MEMP [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted common shares outstanding, Number of Shares, Beginning Balance | shares | 1,368,538 |
Granted, Number of Shares | shares | 50,000 |
Forfeited, Number of Shares | shares | (9,669) |
Vested, Number of Shares | shares | (102,600) |
Restricted common shares outstanding, Number of Shares, Ending Balance | shares | 1,306,269 |
Restricted common shares outstanding, Weighted-Average Grant Date Fair Value Per Shares, Beginning Balance | $ / shares | $ 17.61 |
Granted, Weighted-Average Grant Date Fair Value Per Shares | $ / shares | 2.41 |
Forfeited, Weighted-Average Grant Date Fair Value Per Shares | $ / shares | 18.50 |
Vested, Weighted-Average Grant Date Fair Value Per Shares | $ / shares | 15.96 |
Restricted common shares outstanding, Weighted-Average Grant Date Fair Value Per Shares, Ending Balance | $ / shares | $ 17.15 |
Long-Term Incentive Plans - S70
Long-Term Incentive Plans - Summary of Information Regarding Restricted Common Unit Awards (Parenthetical) (Detail) - Restricted Stock [Member] $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)$ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Granted, Weighted-Average Grant Date Fair Value Per Shares | $ 15.58 |
MRD Segment [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate grant date fair value | $ | $ 0.4 |
Granted, Weighted-Average Grant Date Fair Value Per Shares | $ 15.58 |
MEMP [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate grant date fair value | $ | $ 0.1 |
Granted, Weighted-Average Grant Date Fair Value Per Shares | $ 2.41 |
Long-Term Incentive Plans - S71
Long-Term Incentive Plans - Summary of Amount of Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
MEMP [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Amortization of equity awards | $ 2,568 | $ 2,341 |
Restricted Stock [Member] | MRD Segment [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Amortization of equity awards | 3,152 | 1,486 |
Restricted Stock [Member] | MEMP [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Amortization of equity awards | 2,492 | 2,341 |
Phantom Share Units (PSUs) | MEMP [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Amortization of equity awards | $ 76 | $ 0 |
Long-Term Incentive Plans - Add
Long-Term Incentive Plans - Additional Information (Detail) - USD ($) $ in Millions | Apr. 29, 2016 | Mar. 09, 2016 | Jan. 08, 2016 | Mar. 31, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 21.2 | |||
Unrecognized compensation cost weighted-average period | 2 years 1 month 28 days | |||
Subsequent Event [Member] | Restricted Stock [Member] | Executive Officer and Other Employee [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate award of restricted common shares issued to each executive officers and other employees | 1,093,537 | |||
Vesting period of award | 3 years | |||
MRD Segment [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Fair value of compensation cost reversed | $ 0.4 | |||
Fair value of compensation cost recognized on the date plan modification | 1.1 | |||
MEMP [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Fair value of compensation cost reversed | 0.5 | |||
Fair value of compensation cost recognized on the date plan modification | $ 0.3 | |||
MEMP [Member] | Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 12.9 | |||
Unrecognized compensation cost weighted-average period | 1 year 7 months 28 days | |||
MEMP [Member] | Phantom Share Units (PSUs) | Non-Employee Directors [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate award of phantom units issued to each independent director of our subsidiary | 155,601 | |||
Vesting period date | 2017-01 |
Incentive Units - Additional In
Incentive Units - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity Incentive Plan [Line Items] | ||
Compensation expense | $ (16,041) | $ 14,051 |
Remaining expected life | 2 years 1 month 28 days | |
MRD Holdco LLC [Member] | ||
Equity Incentive Plan [Line Items] | ||
The number of incentive units authorized by governing documents | 1,000 | |
MRD Holdco LLC [Member] | Exchanged Incentive Units [Member] | ||
Equity Incentive Plan [Line Items] | ||
Incentive units granted in an exchange for cancelled predecessor awards | 930 | |
Compensation expense | $ (21,700) | |
Unrecognized compensation expense | $ 38,500 | |
Remaining expected life | 1 year 2 months 1 day | |
MRD Holdco LLC [Member] | Subsequent Incentive Units [Member] | ||
Equity Incentive Plan [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, 2016 | |
Exchanged Incentive Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Dividend yield | 0.00% |
Expected volatility | 56.61% |
Risk-free rate | 0.61% |
Expected life (years) | 1 year 2 months 1 day |
Subsequent Incentive Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Dividend yield | 0.00% |
Expected volatility | 56.61% |
Risk-free rate | 0.61% |
Expected life (years) | 1 year 2 months 1 day |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Related Party Transaction [Line Items] | ||
General and administrative | $ 24,657 | $ 27,487 |
Gas Processing Agreement [Member] | Other Long-term Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Accrued deficiency payments | 3,300 | |
Cretic Energy Services, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Drilling and completion expenses | 3,300 | 600 |
Multi-Shot, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Drilling and completion expenses | $ 2,400 | 200 |
WHR Management Company [Member] | ||
Related Party Transaction [Line Items] | ||
General and administrative | 2,000 | |
Classic Operating And Classic Pipeline [Member] | Water Disposal Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Salt water disposal fees | $ 900 |
Business Segment Data - Additio
Business Segment Data - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 2 |
Business Segment Data - Summary
Business Segment Data - Summary of Selected Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 141,944 | $ 179,841 | |
Adjusted EBITDA | 187,673 | 173,186 | |
Segment assets | 5,096,913 | $ 5,082,849 | |
Total cash expenditures for additions to long-lived assets | 186,471 | 166,246 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 187,682 | 173,262 | |
Operating Segments [Member] | MRD Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 81,078 | 87,023 | |
Adjusted EBITDA | 106,376 | 86,830 | |
Segment assets | 2,267,650 | 2,177,492 | |
Total cash expenditures for additions to long-lived assets | 163,839 | 88,566 | |
Operating Segments [Member] | MEMP [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 60,866 | 92,818 | |
Adjusted EBITDA | 81,306 | 86,432 | |
Segment assets | 2,830,102 | 2,906,003 | |
Total cash expenditures for additions to long-lived assets | 22,632 | 77,680 | |
Other, Adjustments & Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Adjusted EBITDA | (9) | (76) | |
Segment assets | (839) | $ (646) | |
Total cash expenditures for additions to long-lived assets | $ 0 | $ 0 |
Business Segment Data - Schedul
Business Segment Data - Schedule of Calculation of Reportable Segment's Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Net income (loss) | $ 5,677 | $ 45,892 |
Interest expense, net | 43,909 | 38,574 |
Income tax expense (benefit) | 3,033 | 45,188 |
DD&A | 104,228 | 91,798 |
Impairment of proved oil and natural gas properties | 8,342 | 251,347 |
Accretion of AROs | 2,847 | 1,757 |
(Gain) loss on commodity derivative instruments | (88,187) | (253,649) |
Cash settlements received (paid) on expired commodity derivative and other financial instruments | 159,163 | 92,873 |
Transaction related costs | 116 | 2,580 |
Compensation expense | (16,041) | 14,051 |
Exploration costs | 2,568 | 816 |
(Gain) loss on sale of properties | (46) | 0 |
Loss on settlement of AROs | 121 | 0 |
Cash distributions from MEMP | 9 | 76 |
Adjusted EBITDA | 187,673 | 173,186 |
MEMP [Member] | ||
Segment Reporting Information [Line Items] | ||
Impairment of proved oil and natural gas properties | 8,300 | 251,300 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net income (loss) | (32,420) | (112,287) |
Interest expense, net | 43,909 | 38,574 |
Income tax expense (benefit) | 3,033 | 45,188 |
DD&A | 104,228 | 91,798 |
Impairment of proved oil and natural gas properties | 8,342 | 251,347 |
Accretion of AROs | 2,847 | 1,757 |
(Gain) loss on commodity derivative instruments | (88,187) | (253,649) |
Cash settlements received (paid) on expired commodity derivative and other financial instruments | 159,163 | 92,873 |
Transaction related costs | 116 | 2,580 |
Compensation expense | (16,041) | 14,051 |
Exploration costs | 2,568 | 816 |
(Gain) loss on sale of properties | (46) | |
Loss on settlement of AROs | 121 | |
Non-cash equity (income) loss from MEMP | 40 | 138 |
Cash distributions from MEMP | 9 | 76 |
Adjusted EBITDA | 187,682 | 173,262 |
Operating Segments [Member] | MRD Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net income (loss) | 5,677 | 50,371 |
Interest expense, net | 11,357 | 9,756 |
Income tax expense (benefit) | 2,937 | 47,558 |
DD&A | 59,799 | 40,532 |
Impairment of proved oil and natural gas properties | 0 | 0 |
Accretion of AROs | 140 | 123 |
(Gain) loss on commodity derivative instruments | (36,442) | (108,190) |
Cash settlements received (paid) on expired commodity derivative and other financial instruments | 78,942 | 32,749 |
Transaction related costs | 30 | 1,281 |
Compensation expense | (18,609) | 11,710 |
Exploration costs | 2,446 | 726 |
(Gain) loss on sale of properties | 50 | |
Loss on settlement of AROs | 0 | |
Non-cash equity (income) loss from MEMP | 40 | 138 |
Cash distributions from MEMP | 9 | 76 |
Adjusted EBITDA | 106,376 | 86,830 |
Operating Segments [Member] | MEMP [Member] | ||
Segment Reporting Information [Line Items] | ||
Net income (loss) | (38,097) | (162,658) |
Interest expense, net | 32,552 | 28,818 |
Income tax expense (benefit) | 96 | (2,370) |
DD&A | 44,429 | 51,266 |
Impairment of proved oil and natural gas properties | 8,342 | 251,347 |
Accretion of AROs | 2,707 | 1,634 |
(Gain) loss on commodity derivative instruments | (51,745) | (145,459) |
Cash settlements received (paid) on expired commodity derivative and other financial instruments | 80,221 | 60,124 |
Transaction related costs | 86 | 1,299 |
Compensation expense | 2,568 | 2,341 |
Exploration costs | 122 | 90 |
(Gain) loss on sale of properties | (96) | |
Loss on settlement of AROs | 121 | |
Non-cash equity (income) loss from MEMP | 0 | 0 |
Cash distributions from MEMP | 0 | 0 |
Adjusted EBITDA | $ 81,306 | $ 86,432 |
Business Segment Data - Reconci
Business Segment Data - Reconciliation of Total Reportable Segment's Adjusted EBITDA to Net Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total Reportable Segments' Adjusted EBITDA | $ 187,673 | $ 173,186 |
Adjustments to reconcile Adjusted EBITDA to net income (loss): | ||
Interest expense, net | (43,909) | (38,574) |
Income tax benefit (expense) | (3,033) | (45,188) |
DD&A | (104,228) | (91,798) |
Impairment of proved oil and natural gas properties | (8,342) | (251,347) |
Accretion of AROs | (2,847) | (1,757) |
Gains (losses) on commodity derivative instruments | 88,187 | 253,649 |
Cash settlements paid (received) on expired commodity derivative and other financial instruments | (159,163) | (92,873) |
Gain (loss) on sale of properties | 46 | 0 |
Transaction related costs | (116) | (2,580) |
Incentive-based compensation benefit (expense) | 16,041 | (14,051) |
Exploration costs | (2,568) | (816) |
Loss on settlement of AROs | (121) | 0 |
Cash distributions from MEMP | (9) | (76) |
Net income (loss) | (32,380) | (112,149) |
Operating Segments [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total Reportable Segments' Adjusted EBITDA | 187,682 | 173,262 |
Adjustments to reconcile Adjusted EBITDA to net income (loss): | ||
Interest expense, net | (43,909) | (38,574) |
Income tax benefit (expense) | (3,033) | (45,188) |
DD&A | (104,228) | (91,798) |
Impairment of proved oil and natural gas properties | (8,342) | (251,347) |
Accretion of AROs | (2,847) | (1,757) |
Gains (losses) on commodity derivative instruments | 88,187 | 253,649 |
Cash settlements paid (received) on expired commodity derivative and other financial instruments | (159,163) | (92,873) |
Gain (loss) on sale of properties | 46 | |
Transaction related costs | (116) | (2,580) |
Incentive-based compensation benefit (expense) | 16,041 | (14,051) |
Exploration costs | (2,568) | (816) |
Loss on settlement of AROs | (121) | |
Cash distributions from MEMP | $ (9) | $ (76) |
Business Segment Data - Sched80
Business Segment Data - Schedule of Consolidated Statement of Operations Disaggregated by Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Oil & natural gas sales | $ 141,701 | $ 178,972 |
Other revenues | 243 | 869 |
Total revenues | 141,944 | 179,841 |
Costs and expenses: | ||
Lease operating | 42,410 | 45,700 |
Gathering, processing, and transportation | 31,150 | 23,429 |
Gathering, processing, and transportation - affiliate | 14,187 | 0 |
Exploration | 2,568 | 816 |
Taxes other than income | 6,872 | 9,430 |
Depreciation, depletion, and amortization | 104,228 | 91,798 |
Impairment of proved oil and natural gas properties | 8,342 | 251,347 |
Incentive unit compensation expense (benefit) | (21,761) | 10,224 |
General and administrative | 24,657 | 27,487 |
Accretion of asset retirement obligations | 2,847 | 1,757 |
(Gain) loss on commodity derivative instruments | (88,187) | (253,649) |
(Gain) loss on sale of properties | (46) | 0 |
Other, net | 119 | 0 |
Total costs and expenses | 127,386 | 208,339 |
Operating income (loss) | 14,558 | (28,498) |
Other income (expense): | ||
Interest expense, net | (43,909) | (38,574) |
Earnings from equity investments | 0 | 0 |
Other, net | 4 | 111 |
Total other income (expense) | (43,905) | (38,463) |
Income (loss) before income taxes | (29,347) | (66,961) |
Income tax benefit (expense) | (3,033) | (45,188) |
Net income (loss) | (32,380) | (112,149) |
Operating Segments [Member] | ||
Costs and expenses: | ||
Exploration | 2,568 | 816 |
Depreciation, depletion, and amortization | 104,228 | 91,798 |
Impairment of proved oil and natural gas properties | 8,342 | 251,347 |
Accretion of asset retirement obligations | 2,847 | 1,757 |
(Gain) loss on commodity derivative instruments | (88,187) | (253,649) |
(Gain) loss on sale of properties | (46) | |
Other income (expense): | ||
Interest expense, net | (43,909) | (38,574) |
Income tax benefit (expense) | (3,033) | (45,188) |
Other, Adjustments & Eliminations [Member] | ||
Revenues: | ||
Oil & natural gas sales | 0 | 0 |
Other revenues | 0 | 0 |
Total revenues | 0 | 0 |
Costs and expenses: | ||
Lease operating | 0 | 0 |
Gathering, processing, and transportation | 0 | 0 |
Gathering, processing, and transportation - affiliate | 0 | 0 |
Exploration | 0 | 0 |
Taxes other than income | 0 | 0 |
Depreciation, depletion, and amortization | 0 | 0 |
Impairment of proved oil and natural gas properties | 0 | 0 |
Incentive unit compensation expense (benefit) | 0 | 0 |
General and administrative | 0 | 0 |
Accretion of asset retirement obligations | 0 | 0 |
(Gain) loss on commodity derivative instruments | 0 | 0 |
(Gain) loss on sale of properties | 0 | |
Other, net | 0 | |
Total costs and expenses | 0 | 0 |
Operating income (loss) | 0 | 0 |
Other income (expense): | ||
Interest expense, net | 0 | 0 |
Earnings from equity investments | 40 | 138 |
Other, net | 0 | 0 |
Total other income (expense) | 40 | 138 |
Income (loss) before income taxes | 40 | 138 |
Income tax benefit (expense) | 0 | 0 |
Net income (loss) | 40 | 138 |
MRD Segment [Member] | Operating Segments [Member] | ||
Revenues: | ||
Oil & natural gas sales | 81,078 | 87,023 |
Other revenues | 0 | |
Total revenues | 81,078 | 87,023 |
Costs and expenses: | ||
Lease operating | 6,714 | 5,222 |
Gathering, processing, and transportation | 21,941 | 14,763 |
Gathering, processing, and transportation - affiliate | 14,187 | 0 |
Exploration | 2,446 | 726 |
Taxes other than income | 2,864 | 2,775 |
Depreciation, depletion, and amortization | 59,799 | 40,532 |
Impairment of proved oil and natural gas properties | 0 | 0 |
Incentive unit compensation expense (benefit) | (21,761) | 10,224 |
General and administrative | 11,133 | 12,976 |
Accretion of asset retirement obligations | 140 | 123 |
(Gain) loss on commodity derivative instruments | (36,442) | (108,190) |
(Gain) loss on sale of properties | 50 | |
Other, net | 0 | |
Total costs and expenses | 61,071 | (20,849) |
Operating income (loss) | 20,007 | 107,872 |
Other income (expense): | ||
Interest expense, net | (11,357) | (9,756) |
Earnings from equity investments | (40) | (138) |
Other, net | 4 | (49) |
Total other income (expense) | (11,393) | (9,943) |
Income (loss) before income taxes | 8,614 | 97,929 |
Income tax benefit (expense) | (2,937) | (47,558) |
Net income (loss) | 5,677 | 50,371 |
MEMP [Member] | ||
Costs and expenses: | ||
Impairment of proved oil and natural gas properties | 8,300 | 251,300 |
MEMP [Member] | Operating Segments [Member] | ||
Revenues: | ||
Oil & natural gas sales | 60,623 | 91,949 |
Other revenues | 243 | 869 |
Total revenues | 60,866 | 92,818 |
Costs and expenses: | ||
Lease operating | 35,696 | 40,478 |
Gathering, processing, and transportation | 9,209 | 8,666 |
Gathering, processing, and transportation - affiliate | 0 | 0 |
Exploration | 122 | 90 |
Taxes other than income | 4,008 | 6,655 |
Depreciation, depletion, and amortization | 44,429 | 51,266 |
Impairment of proved oil and natural gas properties | 8,342 | 251,347 |
Incentive unit compensation expense (benefit) | 0 | 0 |
General and administrative | 13,524 | 14,511 |
Accretion of asset retirement obligations | 2,707 | 1,634 |
(Gain) loss on commodity derivative instruments | (51,745) | (145,459) |
(Gain) loss on sale of properties | (96) | |
Other, net | 119 | |
Total costs and expenses | 66,315 | 229,188 |
Operating income (loss) | (5,449) | (136,370) |
Other income (expense): | ||
Interest expense, net | (32,552) | (28,818) |
Earnings from equity investments | 0 | 0 |
Other, net | 0 | 160 |
Total other income (expense) | (32,552) | (28,658) |
Income (loss) before income taxes | (38,001) | (165,028) |
Income tax benefit (expense) | (96) | 2,370 |
Net income (loss) | $ (38,097) | $ (162,658) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)bbl / d$ / MMBTU$ / bbl | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | ||
Agreement termination, date | Dec. 31, 2022 | |
Extension term of gas agreement | 1 year | |
Transportation and fractionation deductions | $ / bbl | 4.39 | |
Maximum remaining obligation | $ 6 | |
Sales Delivery Commitment [Member] | April 1, 2016 to December 31, 2022 [Member] | ||
Loss Contingencies [Line Items] | ||
Minimum sales volume commitment | bbl / d | 6,000 | |
ETC Field Services LLC [Member] | ||
Loss Contingencies [Line Items] | ||
Payback demand fee received by the third party | 110.00% | |
Natural gas assesses per MMBtu | $ / MMBTU | 0.25 | |
Regency Intrastate Gas LP [Member] | ||
Loss Contingencies [Line Items] | ||
Agreement termination, date | Dec. 31, 2025 | |
Extension term of gas agreement | 1 year | |
Annual inflation escalator | 2.00% | |
Percentage of retained gas received for fuel | 1.25% | |
Annual inflation escalator for overrun | 2.00% | |
MEMP [Member] | ||
Loss Contingencies [Line Items] | ||
Environmental reserves liability | $ 0.1 | $ 0.2 |
Commitments and Contingencies82
Commitments and Contingencies - Summary of Reserved Capacity and Applicable Fees (Detail) | 3 Months Ended |
Mar. 31, 2016MMBTU / d$ / MMBTU | |
January 1, 2016 to December 31, 2022 [Member] | Reserved Capacity | |
Other Commitments [Line Items] | |
Reserved Capacity | MMBTU / d | 300,000 |
January 1, 2016 to December 31, 2022 [Member] | Reservation Demand Charge | |
Other Commitments [Line Items] | |
Firm gas transportation service fees | 0.075 |
January 1, 2016 to December 31, 2022 [Member] | Overrun Charge | |
Other Commitments [Line Items] | |
Firm gas transportation service fees | 0.150 |
January 1, 2023 to December 31, 2025 [Member] | Reserved Capacity | |
Other Commitments [Line Items] | |
Reserved Capacity | MMBTU / d | 200,000 |
January 1, 2023 to December 31, 2025 [Member] | Reservation Demand Charge | |
Other Commitments [Line Items] | |
Firm gas transportation service fees | 0.075 |
January 1, 2023 to December 31, 2025 [Member] | Overrun Charge | |
Other Commitments [Line Items] | |
Firm gas transportation service fees | 0.150 |
Commitments and Contingencies83
Commitments and Contingencies - Summary of Pricing Grid Subject to Annual Escalation for Gas Received (Detail) | Mar. 31, 2016$ / MMBTU |
Total gas receipts ≤ contracted reserved capacity [Member] | Reservation Demand Charge | |
Other Commitments [Line Items] | |
Firm gas transportation service fees | 0.075 |
Total gas receipts ≤ contracted reserved capacity [Member] | Commodity Charge | |
Other Commitments [Line Items] | |
Firm gas transportation service fees | 0.075 |
Total gas receipts > contracted reserved capacity [Member] | Overrun Charge | |
Other Commitments [Line Items] | |
Firm gas transportation service fees | 0.150 |
Commitments and Contingencies84
Commitments and Contingencies - Gross Held-to-Maturity Investments (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Money Market Funds [Member] | |
Held-to-maturity Securities [Abstract] | |
Amortized Cost | $ 146,028 |
Commitments and Contingencies85
Commitments and Contingencies - Minimum Balances Attributable to Net Working Interest (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
June 30, 2016 [Member] | |
Asset retirement obligations | |
Minimum balances attributable to net working interest | $ 148,000 |
December 31, 2016 [Member] | |
Asset retirement obligations | |
Minimum balances attributable to net working interest | $ 152,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 10.30% | 67.50% | |
Income tax expense (benefit) | $ 3,033,000 | $ 45,188,000 | |
Unrecognized tax benefits | $ 0 | ||
Reversed deferred tax liability | $ 28,000,000 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Variable Interest Entity [Line Items] | |
Maximum loss exposure of MEMP GP | $ 0.8 |
Minimum | |
Variable Interest Entity [Line Items] | |
Quarterly distribution of MEMP's operational surplus after minimum quarterly distribution and specified target distribution achieved | 14.90% |
Maximum | |
Variable Interest Entity [Line Items] | |
Quarterly distribution of MEMP's operational surplus after minimum quarterly distribution and specified target distribution achieved | 24.90% |
MEMP GP & MEMP IDRs [Member] | |
Variable Interest Entity [Line Items] | |
Ownership interest percentage | 50.00% |
Condensed Consolidating Finan88
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 2,075 | $ 2,175 | $ 4,512 | $ 5,958 |
Accounts receivable - trade | 112,724 | 114,095 | ||
Accounts receivable - affiliates | 0 | 0 | ||
Short-term derivative instruments | 472,956 | 500,311 | ||
Other financial instruments (Note 5) | 35,358 | 46,106 | ||
Prepaid expenses and other current assets | 11,443 | 13,017 | ||
Total current assets | 634,556 | 675,704 | ||
Property and equipment, net | 3,778,064 | 3,691,384 | ||
Long-term derivative instruments | 517,045 | 553,101 | ||
Investments in subsidiaries | 0 | 0 | ||
Other long-term assets | 167,248 | 162,660 | ||
Total assets | 5,096,913 | 5,082,849 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 161,709 | 155,648 | ||
Accounts payable - affiliates | 9,443 | 5,209 | ||
Revenues payable | 58,572 | 61,047 | ||
Short-term derivative instruments | 2,098 | 2,850 | ||
Total current liabilities | 231,822 | 224,754 | ||
Long-term debt | 3,071,467 | 3,012,643 | ||
Asset retirement obligations | 175,495 | 173,068 | ||
Long-term derivative instruments | 2,161 | 1,441 | ||
Deferred tax liabilities | 198,320 | 195,827 | ||
Other long-term liabilities | 6,689 | 7,195 | ||
Total liabilities | 3,685,954 | 3,614,928 | ||
Equity: | ||||
Equity | 809,624 | 822,827 | ||
Noncontrolling interests | 601,335 | 645,094 | ||
Total equity | 1,410,959 | 1,467,921 | 1,510,421 | 1,702,964 |
Total liabilities and equity | 5,096,913 | 5,082,849 | ||
Parent [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 2,779 | 2,986 | 454 | 2,241 |
Accounts receivable - trade | 14,139 | 7,850 | ||
Accounts receivable - affiliates | 8,244 | 9,525 | ||
Short-term derivative instruments | 213,102 | 227,991 | ||
Other financial instruments (Note 5) | 35,358 | 46,106 | ||
Prepaid expenses and other current assets | 2,198 | 2,318 | ||
Total current assets | 275,820 | 296,776 | ||
Property and equipment, net | 14,902 | 15,825 | ||
Long-term derivative instruments | 74,429 | 91,292 | ||
Investments in subsidiaries | 1,610,811 | 1,482,847 | ||
Other long-term assets | 4,637 | 4,976 | ||
Total assets | 1,980,599 | 1,891,716 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 18,182 | 26,796 | ||
Accounts payable - affiliates | 0 | 0 | ||
Revenues payable | 0 | 80 | ||
Short-term derivative instruments | 0 | 0 | ||
Total current liabilities | 18,182 | 26,876 | ||
Long-term debt | 1,113,483 | 1,012,064 | ||
Asset retirement obligations | 0 | 0 | ||
Long-term derivative instruments | 0 | 0 | ||
Deferred tax liabilities | 32,621 | 22,754 | ||
Other long-term liabilities | 6,689 | 7,195 | ||
Total liabilities | 1,170,975 | 1,068,889 | ||
Equity: | ||||
Equity | 809,624 | 822,827 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 809,624 | 822,827 | ||
Total liabilities and equity | 1,980,599 | 1,891,716 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 2,985 | 3,762 |
Accounts receivable - trade | 56,820 | 49,537 | ||
Accounts receivable - affiliates | 0 | 0 | ||
Short-term derivative instruments | 0 | 0 | ||
Other financial instruments (Note 5) | 0 | 0 | ||
Prepaid expenses and other current assets | 4,406 | 3,670 | ||
Total current assets | 61,226 | 53,207 | ||
Property and equipment, net | 1,845,780 | 1,729,236 | ||
Long-term derivative instruments | 0 | 0 | ||
Investments in subsidiaries | 0 | 0 | ||
Other long-term assets | 3,326 | 0 | ||
Total assets | 1,910,332 | 1,782,443 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 76,460 | 69,279 | ||
Accounts payable - affiliates | 12,572 | 14,193 | ||
Revenues payable | 33,145 | 35,463 | ||
Short-term derivative instruments | 0 | 0 | ||
Total current liabilities | 122,177 | 118,935 | ||
Long-term debt | 0 | 0 | ||
Asset retirement obligations | 10,531 | 10,079 | ||
Long-term derivative instruments | 0 | 0 | ||
Deferred tax liabilities | 163,541 | 170,979 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 296,249 | 299,993 | ||
Equity: | ||||
Equity | 1,614,083 | 1,482,450 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 1,614,083 | 1,482,450 | ||
Total liabilities and equity | 1,910,332 | 1,782,443 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 836 | 599 | 1,073 | 970 |
Accounts receivable - trade | 45,290 | 60,238 | ||
Accounts receivable - affiliates | 0 | 0 | ||
Short-term derivative instruments | 259,854 | 272,320 | ||
Other financial instruments (Note 5) | 0 | 0 | ||
Prepaid expenses and other current assets | 4,839 | 7,029 | ||
Total current assets | 310,819 | 340,186 | ||
Property and equipment, net | 1,917,382 | 1,946,323 | ||
Long-term derivative instruments | 442,616 | 461,809 | ||
Investments in subsidiaries | 0 | 0 | ||
Other long-term assets | 159,285 | 157,684 | ||
Total assets | 2,830,102 | 2,906,002 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 68,607 | 61,715 | ||
Accounts payable - affiliates | 5,137 | 3,339 | ||
Revenues payable | 25,427 | 25,504 | ||
Short-term derivative instruments | 2,098 | 2,850 | ||
Total current liabilities | 101,269 | 93,408 | ||
Long-term debt | 1,957,984 | 2,000,579 | ||
Asset retirement obligations | 164,964 | 162,989 | ||
Long-term derivative instruments | 2,161 | 1,441 | ||
Deferred tax liabilities | 2,158 | 2,094 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 2,228,536 | 2,260,511 | ||
Equity: | ||||
Equity | 601,566 | 645,491 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 601,566 | 645,491 | ||
Total liabilities and equity | 2,830,102 | 2,906,002 | ||
Eliminations [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | (1,540) | (1,410) | $ 0 | $ (1,015) |
Accounts receivable - trade | (3,525) | (3,530) | ||
Accounts receivable - affiliates | (8,244) | (9,525) | ||
Short-term derivative instruments | 0 | 0 | ||
Other financial instruments (Note 5) | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | (13,309) | (14,465) | ||
Property and equipment, net | 0 | 0 | ||
Long-term derivative instruments | 0 | 0 | ||
Investments in subsidiaries | (1,610,811) | (1,482,847) | ||
Other long-term assets | 0 | 0 | ||
Total assets | (1,624,120) | (1,497,312) | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | (1,540) | (2,142) | ||
Accounts payable - affiliates | (8,266) | (12,323) | ||
Revenues payable | 0 | 0 | ||
Short-term derivative instruments | 0 | 0 | ||
Total current liabilities | (9,806) | (14,465) | ||
Long-term debt | 0 | 0 | ||
Asset retirement obligations | 0 | 0 | ||
Long-term derivative instruments | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | (9,806) | (14,465) | ||
Equity: | ||||
Equity | (2,215,649) | (2,127,941) | ||
Noncontrolling interests | 601,335 | 645,094 | ||
Total equity | (1,614,314) | (1,482,847) | ||
Total liabilities and equity | $ (1,624,120) | $ (1,497,312) |
Condensed Consolidating Finan89
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Oil & natural gas sales | $ 141,701 | $ 178,972 |
Other income | 243 | 869 |
Total revenues | 141,944 | 179,841 |
Costs and expenses: | ||
Lease operating | 42,410 | 45,700 |
Gathering, processing, and transportation | 31,150 | 23,429 |
Gathering, processing, and transportation - affiliate | 14,187 | 0 |
Exploration | 2,568 | 816 |
Taxes other than income | 6,872 | 9,430 |
Depreciation, depletion, and amortization | 104,228 | 91,798 |
Impairment of proved oil and natural gas properties | 8,342 | 251,347 |
Incentive unit compensation expense (benefit) | (21,761) | 10,224 |
General and administrative | 24,657 | 27,487 |
Accretion of AROs | 2,847 | 1,757 |
(Gain) loss on commodity derivatives | (88,187) | (253,649) |
(Gain) loss on sale of properties | (46) | 0 |
Other, net | 119 | 0 |
Total costs and expenses | 127,386 | 208,339 |
Operating income (loss) | 14,558 | (28,498) |
Other income (expense): | ||
Interest expense, net | (43,909) | (38,574) |
Equity earnings from subsidiaries | 0 | 0 |
Other, net | 4 | 111 |
Total other income (expense) | (43,905) | (38,463) |
Income (loss) before income taxes | (29,347) | (66,961) |
Income tax benefit (expense) | (3,033) | (45,188) |
Net income (loss) | (32,380) | (112,149) |
Net income (loss) attributable to noncontrolling interest | (38,057) | (158,041) |
Net income (loss) attributable to Memorial Resource Development Corp. | 5,677 | 45,892 |
Parent [Member] | ||
Revenues: | ||
Oil & natural gas sales | 0 | 0 |
Other income | 0 | 0 |
Total revenues | 0 | 0 |
Costs and expenses: | ||
Lease operating | 0 | 0 |
Gathering, processing, and transportation | 0 | 0 |
Gathering, processing, and transportation - affiliate | 0 | |
Exploration | 0 | 0 |
Taxes other than income | 652 | 0 |
Depreciation, depletion, and amortization | 1,105 | 968 |
Impairment of proved oil and natural gas properties | 0 | 0 |
Incentive unit compensation expense (benefit) | (21,761) | 10,224 |
General and administrative | 10,759 | 10,925 |
Accretion of AROs | 0 | 0 |
(Gain) loss on commodity derivatives | (36,442) | (108,190) |
(Gain) loss on sale of properties | 0 | |
Other, net | 0 | |
Total costs and expenses | (45,687) | (86,073) |
Operating income (loss) | 45,687 | 86,073 |
Other income (expense): | ||
Interest expense, net | (11,357) | (9,757) |
Equity earnings from subsidiaries | (17,003) | 7,021 |
Other, net | 0 | 0 |
Total other income (expense) | (28,360) | (2,736) |
Income (loss) before income taxes | 17,327 | 83,337 |
Income tax benefit (expense) | (11,650) | (37,445) |
Net income (loss) | 5,677 | 45,892 |
Net income (loss) attributable to noncontrolling interest | 0 | 0 |
Net income (loss) attributable to Memorial Resource Development Corp. | 5,677 | 45,892 |
Guarantor Subsidiaries [Member] | ||
Revenues: | ||
Oil & natural gas sales | 81,078 | 87,023 |
Other income | 0 | 0 |
Total revenues | 81,078 | 87,023 |
Costs and expenses: | ||
Lease operating | 6,714 | 5,222 |
Gathering, processing, and transportation | 21,941 | 14,763 |
Gathering, processing, and transportation - affiliate | 14,187 | |
Exploration | 2,446 | 726 |
Taxes other than income | 2,212 | 2,775 |
Depreciation, depletion, and amortization | 58,694 | 39,564 |
Impairment of proved oil and natural gas properties | 0 | 0 |
Incentive unit compensation expense (benefit) | 0 | 0 |
General and administrative | 374 | 2,051 |
Accretion of AROs | 140 | 123 |
(Gain) loss on commodity derivatives | 0 | 0 |
(Gain) loss on sale of properties | 50 | |
Other, net | 0 | |
Total costs and expenses | 106,758 | 65,224 |
Operating income (loss) | (25,680) | 21,799 |
Other income (expense): | ||
Interest expense, net | 0 | 0 |
Equity earnings from subsidiaries | 0 | 0 |
Other, net | 4 | (49) |
Total other income (expense) | 4 | (49) |
Income (loss) before income taxes | (25,676) | 21,750 |
Income tax benefit (expense) | 8,713 | (10,113) |
Net income (loss) | (16,963) | 11,637 |
Net income (loss) attributable to noncontrolling interest | 0 | 0 |
Net income (loss) attributable to Memorial Resource Development Corp. | (16,963) | 11,637 |
Non-Guarantor Subsidiaries [Member] | ||
Revenues: | ||
Oil & natural gas sales | 60,623 | 91,949 |
Other income | 243 | 869 |
Total revenues | 60,866 | 92,818 |
Costs and expenses: | ||
Lease operating | 35,696 | 40,478 |
Gathering, processing, and transportation | 9,209 | 8,666 |
Gathering, processing, and transportation - affiliate | 0 | |
Exploration | 122 | 90 |
Taxes other than income | 4,008 | 6,655 |
Depreciation, depletion, and amortization | 44,429 | 51,266 |
Impairment of proved oil and natural gas properties | 8,342 | 251,347 |
Incentive unit compensation expense (benefit) | 0 | 0 |
General and administrative | 13,524 | 14,511 |
Accretion of AROs | 2,707 | 1,634 |
(Gain) loss on commodity derivatives | (51,745) | (145,459) |
(Gain) loss on sale of properties | (96) | |
Other, net | 119 | |
Total costs and expenses | 66,315 | 229,188 |
Operating income (loss) | (5,449) | (136,370) |
Other income (expense): | ||
Interest expense, net | (32,552) | (28,817) |
Equity earnings from subsidiaries | 0 | 0 |
Other, net | 0 | 160 |
Total other income (expense) | (32,552) | (28,657) |
Income (loss) before income taxes | (38,001) | (165,027) |
Income tax benefit (expense) | (96) | 2,370 |
Net income (loss) | (38,097) | (162,657) |
Net income (loss) attributable to noncontrolling interest | 0 | 159 |
Net income (loss) attributable to Memorial Resource Development Corp. | (38,097) | (162,816) |
Eliminations [Member] | ||
Revenues: | ||
Oil & natural gas sales | 0 | 0 |
Other income | 0 | 0 |
Total revenues | 0 | 0 |
Costs and expenses: | ||
Lease operating | 0 | 0 |
Gathering, processing, and transportation | 0 | 0 |
Gathering, processing, and transportation - affiliate | 0 | |
Exploration | 0 | 0 |
Taxes other than income | 0 | 0 |
Depreciation, depletion, and amortization | 0 | 0 |
Impairment of proved oil and natural gas properties | 0 | 0 |
Incentive unit compensation expense (benefit) | 0 | 0 |
General and administrative | 0 | 0 |
Accretion of AROs | 0 | 0 |
(Gain) loss on commodity derivatives | 0 | 0 |
(Gain) loss on sale of properties | 0 | |
Other, net | 0 | |
Total costs and expenses | 0 | 0 |
Operating income (loss) | 0 | 0 |
Other income (expense): | ||
Interest expense, net | 0 | 0 |
Equity earnings from subsidiaries | 17,003 | (7,021) |
Other, net | 0 | 0 |
Total other income (expense) | 17,003 | (7,021) |
Income (loss) before income taxes | 17,003 | (7,021) |
Income tax benefit (expense) | 0 | 0 |
Net income (loss) | 17,003 | (7,021) |
Net income (loss) attributable to noncontrolling interest | (38,057) | (158,200) |
Net income (loss) attributable to Memorial Resource Development Corp. | $ 55,060 | $ 151,179 |
Condensed Consolidating Finan90
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | $ 133,253 | $ 171,816 |
Cash flows from investing activities: | ||
Acquisitions of oil and natural gas properties | 0 | (3,305) |
Additions to oil and gas properties | (186,182) | (160,994) |
Additions to other property and equipment | (289) | (1,947) |
Additions to restricted investments | (2,136) | (1,426) |
Other financial hybrid instruments | 6,415 | |
Investments in subsidiaries | 0 | 0 |
Distributions from subsidiaries | 0 | 0 |
Proceeds from the sale of oil and gas properties | 325 | 0 |
Other | 77 | 0 |
Net cash used in investing activities | (181,790) | (167,672) |
Cash flows from financing activities: | ||
Advances on revolving credit facilities | 175,000 | 270,000 |
Payments on revolving credit facilities | (118,000) | (148,000) |
Repayment of senior notes | 0 | (2,914) |
Deferred financing costs | (39) | (10) |
Capital contributions | 0 | 0 |
Contributions from NGP affiliates related to sale of assets | 26 | |
Distribution to equity owners | 0 | 0 |
Distributions to noncontrolling interests | (8,295) | (46,239) |
Repurchases of equity | (255) | |
Other | 0 | (7) |
Net cash provided by (used in) financing activities | 48,437 | (5,590) |
Net change in cash and cash equivalents | (100) | (1,446) |
Cash and cash equivalents, beginning of period | 2,175 | 5,958 |
Cash and cash equivalents, end of period | 2,075 | 4,512 |
MRD [Member] | ||
Cash flows from financing activities: | ||
Distributions to MRD | 0 | |
MRD Segment [Member] | ||
Cash flows from financing activities: | ||
Repurchases of equity | (225) | (50,000) |
MEMP [Member] | ||
Cash flows from financing activities: | ||
Repayment of senior notes | 0 | (2,914) |
Repurchases of equity | (30) | (28,420) |
Parent [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 39,157 | 16,404 |
Cash flows from investing activities: | ||
Acquisitions of oil and natural gas properties | 0 | 0 |
Additions to oil and gas properties | 0 | 0 |
Additions to other property and equipment | (194) | (1,687) |
Additions to restricted investments | 0 | 0 |
Other financial hybrid instruments | 6,415 | |
Investments in subsidiaries | (146,348) | (5,580) |
Distributions from subsidiaries | 9 | 78,076 |
Proceeds from the sale of oil and gas properties | 0 | |
Other | 0 | |
Net cash used in investing activities | (140,118) | 70,809 |
Cash flows from financing activities: | ||
Advances on revolving credit facilities | 147,000 | 104,000 |
Payments on revolving credit facilities | (46,000) | (143,000) |
Repayment of senior notes | 0 | 0 |
Deferred financing costs | (21) | 0 |
Capital contributions | 0 | 0 |
Contributions from NGP affiliates related to sale of assets | 0 | |
Distribution to equity owners | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Repurchases of equity | (225) | |
Other | 0 | |
Net cash provided by (used in) financing activities | 100,754 | (89,000) |
Net change in cash and cash equivalents | (207) | (1,787) |
Cash and cash equivalents, beginning of period | 2,986 | 2,241 |
Cash and cash equivalents, end of period | 2,779 | 454 |
Parent [Member] | MRD [Member] | ||
Cash flows from financing activities: | ||
Distributions to MRD | 0 | |
Parent [Member] | MRD Segment [Member] | ||
Cash flows from financing activities: | ||
Repurchases of equity | (50,000) | |
Parent [Member] | MEMP [Member] | ||
Cash flows from financing activities: | ||
Repurchases of equity | 0 | |
Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 17,220 | 82,434 |
Cash flows from investing activities: | ||
Acquisitions of oil and natural gas properties | 0 | 0 |
Additions to oil and gas properties | (163,645) | (86,619) |
Additions to other property and equipment | 0 | (260) |
Additions to restricted investments | 0 | 0 |
Other financial hybrid instruments | 0 | |
Investments in subsidiaries | 0 | 0 |
Distributions from subsidiaries | 0 | 0 |
Proceeds from the sale of oil and gas properties | 0 | |
Other | 77 | |
Net cash used in investing activities | (163,568) | (86,879) |
Cash flows from financing activities: | ||
Advances on revolving credit facilities | 0 | 0 |
Payments on revolving credit facilities | 0 | 0 |
Repayment of senior notes | 0 | 0 |
Deferred financing costs | 0 | 0 |
Capital contributions | 146,348 | 3,668 |
Contributions from NGP affiliates related to sale of assets | 0 | |
Distribution to equity owners | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Repurchases of equity | 0 | |
Other | 0 | |
Net cash provided by (used in) financing activities | 146,348 | 3,668 |
Net change in cash and cash equivalents | 0 | (777) |
Cash and cash equivalents, beginning of period | 0 | 3,762 |
Cash and cash equivalents, end of period | 0 | 2,985 |
Guarantor Subsidiaries [Member] | MRD [Member] | ||
Cash flows from financing activities: | ||
Distributions to MRD | 0 | |
Guarantor Subsidiaries [Member] | MRD Segment [Member] | ||
Cash flows from financing activities: | ||
Repurchases of equity | 0 | |
Guarantor Subsidiaries [Member] | MEMP [Member] | ||
Cash flows from financing activities: | ||
Repurchases of equity | 0 | |
Non-Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 77,006 | 71,963 |
Cash flows from investing activities: | ||
Acquisitions of oil and natural gas properties | 0 | (3,305) |
Additions to oil and gas properties | (22,537) | (74,375) |
Additions to other property and equipment | (95) | 0 |
Additions to restricted investments | (2,136) | (1,426) |
Other financial hybrid instruments | 0 | |
Investments in subsidiaries | 0 | 0 |
Distributions from subsidiaries | 0 | 0 |
Proceeds from the sale of oil and gas properties | 325 | |
Other | 0 | |
Net cash used in investing activities | (24,443) | (79,106) |
Cash flows from financing activities: | ||
Advances on revolving credit facilities | 28,000 | 166,000 |
Payments on revolving credit facilities | (72,000) | (5,000) |
Repayment of senior notes | 0 | (2,914) |
Deferred financing costs | (18) | (10) |
Capital contributions | 0 | 1,912 |
Contributions from NGP affiliates related to sale of assets | 26 | |
Distribution to equity owners | (8,304) | (46,315) |
Distributions to noncontrolling interests | 0 | 0 |
Repurchases of equity | (30) | |
Other | (7) | |
Net cash provided by (used in) financing activities | (52,326) | 7,246 |
Net change in cash and cash equivalents | 237 | 103 |
Cash and cash equivalents, beginning of period | 599 | 970 |
Cash and cash equivalents, end of period | 836 | 1,073 |
Non-Guarantor Subsidiaries [Member] | MRD [Member] | ||
Cash flows from financing activities: | ||
Distributions to MRD | (78,000) | |
Non-Guarantor Subsidiaries [Member] | MRD Segment [Member] | ||
Cash flows from financing activities: | ||
Repurchases of equity | 0 | |
Non-Guarantor Subsidiaries [Member] | MEMP [Member] | ||
Cash flows from financing activities: | ||
Repurchases of equity | (28,420) | |
Eliminations [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | (130) | 1,015 |
Cash flows from investing activities: | ||
Acquisitions of oil and natural gas properties | 0 | 0 |
Additions to oil and gas properties | 0 | 0 |
Additions to other property and equipment | 0 | 0 |
Additions to restricted investments | 0 | 0 |
Other financial hybrid instruments | 0 | |
Investments in subsidiaries | 146,348 | 5,580 |
Distributions from subsidiaries | (9) | (78,076) |
Proceeds from the sale of oil and gas properties | 0 | |
Other | 0 | |
Net cash used in investing activities | 146,339 | (72,496) |
Cash flows from financing activities: | ||
Advances on revolving credit facilities | 0 | 0 |
Payments on revolving credit facilities | 0 | 0 |
Repayment of senior notes | 0 | 0 |
Deferred financing costs | 0 | 0 |
Capital contributions | (146,348) | (5,580) |
Contributions from NGP affiliates related to sale of assets | 0 | |
Distribution to equity owners | 8,304 | 46,315 |
Distributions to noncontrolling interests | (8,295) | (46,239) |
Repurchases of equity | 0 | |
Other | 0 | |
Net cash provided by (used in) financing activities | (146,339) | 72,496 |
Net change in cash and cash equivalents | (130) | 1,015 |
Cash and cash equivalents, beginning of period | (1,410) | (1,015) |
Cash and cash equivalents, end of period | $ (1,540) | 0 |
Eliminations [Member] | MRD [Member] | ||
Cash flows from financing activities: | ||
Distributions to MRD | 78,000 | |
Eliminations [Member] | MRD Segment [Member] | ||
Cash flows from financing activities: | ||
Repurchases of equity | 0 | |
Eliminations [Member] | MEMP [Member] | ||
Cash flows from financing activities: | ||
Repurchases of equity | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Thousands | Apr. 27, 2016USD ($) |
Subsequent Event [Member] | MEMP GP | MEMP [Member] | |
Subsequent Event [Line Items] | |
Proceeds from divestiture | $ 750 |