Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 07, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Lonestar Resources US Inc. | |
Entity Central Index Key | 1,661,920 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 8,022,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 5,990 | $ 4,322 |
Accounts receivable: | ||
Oil, natural gas liquid and natural gas sales | 4,879 | 5,043 |
Joint interest owners and other | 884 | 1,305 |
Related parties | 279 | |
Derivative financial instruments | 8,538 | 33,219 |
Prepaid expenses and other | 1,749 | 724 |
Total current assets | 22,040 | 44,892 |
Oil and gas properties, net, using the successful efforts method of accounting | 432,169 | 488,100 |
Oil and gas properties held for sale | 18,120 | |
Other property and equipment, net | 1,963 | 2,223 |
Derivative financial instruments | 315 | 2,864 |
Other noncurrent assets | 2,185 | 1,580 |
Restricted certificates of deposit | 78 | 77 |
Total assets | 476,870 | 539,736 |
Current liabilities | ||
Accounts payable | 9,410 | 18,027 |
Accounts payable – related parties | 175 | 45 |
Oil, natural gas liquid and natural gas sales payable | 3,475 | 3,870 |
Accrued liabilities | 12,450 | 8,276 |
Accrued liabilities – related parties | 356 | 125 |
Current income tax payable | 5,581 | |
Derivative financial instruments | 420 | |
Total current liabilities | 31,867 | 30,343 |
Long-term debt | 277,688 | 301,926 |
Deferred tax liability | 16,013 | |
Other non-current liabilities | 1,000 | 1,000 |
Equity warrant liability | 5,738 | |
Asset retirement obligations | 2,636 | 7,488 |
Asset retirement obligations - Held for sale | 4,505 | |
Derivative financial instruments | 78 | |
Total liabilities | 323,512 | 356,770 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Additional paid-in capital | 15,303 | 10,270 |
Accumulated other comprehensive loss | (760) | |
Retained (deficit) earnings | (4,583) | 30,818 |
Total stockholders’ equity | 153,358 | 182,966 |
Total liabilities and stockholders’ equity | 476,870 | 539,736 |
Class A Voting Common Stock [Member] | ||
Stockholders’ equity | ||
Common stock value | $ 142,638 | $ 142,638 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Class A Voting Common Stock [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 8,022,015 | 7,521,788 |
Common stock, shares outstanding | 8,022,015 | 7,521,788 |
Class B Non-Voting Common Stock [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 5,000 | 5,000 |
Common stock, shares issued | 2,500 | 0 |
Common stock, shares outstanding | 2,500 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations & Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||||
Oil sales | $ 12,285 | $ 18,849 | $ 36,404 | $ 56,408 |
Natural gas sales | 2,190 | 1,612 | 5,448 | 4,091 |
Natural gas liquid sales | 1,063 | 416 | 2,685 | 1,538 |
Total revenues | 15,538 | 20,877 | 44,537 | 62,037 |
Costs and expenses | ||||
Lease operating and gas gathering | 4,006 | 4,616 | 12,764 | 12,666 |
Production, ad valorem, and severance taxes | 907 | 1,376 | 3,046 | 4,203 |
Rig standby expense | 364 | 10 | 2,261 | 10 |
Depletion, depreciation, and amortization | 10,665 | 13,823 | 38,301 | 39,861 |
Accretion of asset retirement obligations | 53 | 53 | 160 | 160 |
Loss (gain) on sale of oil and gas properties | 53 | (1,478) | 625 | |
Impairment of oil and gas properties | 29,144 | 31,082 | ||
Stock-based compensation | 122 | 880 | 313 | 1,746 |
General and administrative | 2,870 | 2,399 | 8,501 | 7,095 |
Other expense | 1 | 18 | 1,045 | 53 |
Total costs and expenses | 48,185 | 23,175 | 95,995 | 66,419 |
Loss from operations | (32,647) | (2,298) | (51,458) | (4,382) |
Other income (expense) | ||||
Interest expense | (7,345) | (6,666) | (19,644) | (18,485) |
Gain on disposal of bonds | 29,363 | 29,363 | ||
Unrealized loss on warrants | (611) | (611) | ||
Gain (loss) on derivative financial instruments | 1,664 | 19,481 | (3,405) | 18,956 |
Total other income, net | 23,071 | 12,815 | 5,703 | 471 |
(Loss) income before income taxes | (9,576) | 10,517 | (45,755) | (3,911) |
Income tax (expense) benefit | (1,684) | (3,931) | 10,354 | 1,419 |
Net (loss) income | $ (11,260) | $ 6,586 | $ (35,401) | $ (2,492) |
Net (loss) income per common share-basic and diluted | $ (1.44) | $ 0.88 | $ (4.64) | $ (0.33) |
Weighted average common shares outstanding–basic and diluted | 7,842,586 | 7,522,025 | 7,629,896 | 7,522,025 |
Other comprehensive (loss) income: | ||||
Net (loss) income | $ (11,260) | $ 6,586 | $ (35,401) | $ (2,492) |
Foreign currency translation adjustments | (13) | (30) | (29) | (29) |
Comprehensive (loss) income | $ (11,273) | $ 6,556 | $ (35,430) | $ (2,521) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Class A Voting Common Stock | Common StockClass A Voting Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive loss |
Beginning balance at Dec. 31, 2015 | $ 182,966 | $ 142,638 | $ 10,270 | $ 30,818 | $ (760) | |
Beginning balance (in shares) at Dec. 31, 2015 | 7,521,788 | 7,521,788 | ||||
Share Issuance | 5,509 | 5,509 | ||||
Share Issuance (in shares) | 500,227 | |||||
Stock-based compensation | 313 | 313 | ||||
Foreign currency translation adjustments | (29) | (789) | $ 760 | |||
Net loss | (35,401) | (35,401) | ||||
Ending balance at Sep. 30, 2016 | $ 153,358 | $ 142,638 | $ 15,303 | $ (4,583) | ||
Ending balance (in shares) at Sep. 30, 2016 | 8,022,015 | 8,022,015 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities | ||
Net loss | $ (35,401) | $ (2,492) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
(Gain) loss on disposal of oil and gas properties | (866) | 629 |
Accretion of asset retirement obligations | 160 | 160 |
Depletion, depreciation, and amortization | 38,301 | 39,861 |
Stock-based compensation | 313 | 1,746 |
Deferred taxes | (10,432) | (1,418) |
(Gain) loss on derivative financial instruments | 3,405 | (18,956) |
Settlements of derivative financial instruments | 24,322 | 26,497 |
Impairment of oil and gas properties | 31,082 | |
Non-cash interest expense | 1,677 | 825 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 865 | 8,526 |
Prepaid expenses and other assets | (1,961) | (896) |
Accounts payable and accrued expenses | (4,479) | (4,453) |
Net cash provided by operating activities | 46,986 | 50,029 |
Investing activities | ||
Acquisition of oil and gas properties | (3,115) | (7,032) |
Development of oil and gas properties | (24,856) | (77,735) |
Proceeds from sales of oil and gas properties | 2,720 | |
Purchases of other property and equipment | (202) | (191) |
Net cash used in investing activities | (25,453) | (84,958) |
Financing activities | ||
Proceeds from borrowings | 64,325 | 123,514 |
Payments on borrowings | (84,152) | (93,514) |
Payments on other note payable | (9) | (9) |
Net cash provided by (used in) financing activities | (19,836) | 29,991 |
Effect of exchange rate changes on cash and cash equivalents | (29) | (29) |
Increase (decrease) in cash and cash equivalents | 1,668 | (4,967) |
Cash and cash equivalents, beginning of the period | 4,322 | 9,992 |
Cash and cash equivalents, end of the period | 5,990 | 5,025 |
Supplemental information | ||
Cash paid for interest expense | 14,095 | $ 11,020 |
Common stock issued for asset acquisition | $ 5,500 |
Nature of Business and Presenta
Nature of Business and Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business and Presentation | 1. Nature of Business and Presentation Lonestar Resources US Inc. (the “Successor”) was incorporated in Delaware in December 2015 for purposes of effecting our corporate reorganization, which was completed on July 5, 2016 (the “Reorganization”), pursuant to a Scheme Implementation Agreement (the “Scheme”), dated December 28, 2015, between the Successor and Lonestar Resources Limited (the “Predecessor”), an Australian company. Prior to the Reorganization, our business was owned and operated under our Predecessor, whose ordinary shares were listed on the Australian Securities Exchange (“ASX”). Pursuant to the Scheme, the Successor acquired all of the issued and outstanding ordinary shares of our Predecessor, and each of our Predecessor’s shareholders received one share of our Class A voting common stock for every two ordinary shares of our Predecessor such shareholder held. Prior to the Reorganization, the Successor had no business or operations, and following the Reorganization, the business and the operations of the Successor consist solely of the business and operations of the subsidiaries of the Predecessor. The reorganization was treated as a transaction among parties under common control and no gain or loss was recorded. Lonestar Resources America, Inc. (“LRAI”) is a Delaware registered U.S. holding company formed on January 31, 2013, which is engaged in the exploration, development, production, acquisition, and sale of oil, natural gas liquid (“NGL”) and natural gas primarily in the Eagle Ford Shale Play in South Texas, Conventional properties in North Texas and Bakken properties in Montana through its wholly owned subsidiaries, Lonestar Resources, Inc. and Amadeus Petroleum, Inc. Its executive offices are located in Fort Worth, Texas. LRAI was a wholly owned subsidiary of the Predecessor, prior to the reorganization described below. The majority of the activities of the Predecessor was carried out through LRAI. Unless the context otherwise requires, references in this Quarterly Report on Form 10-Q to “Lonestar,” “we,” “us,” “our,” and “the Company” refer to (i) Lonestar Resources Limited and its subsidiaries prior to the Reorganization and (ii) Lonestar Resources US Inc. and its subsidiaries upon completion of the Reorganization, as applicable. Basis of Presentation The accompanying interim consolidated financial statements have not been audited by independent public accountants, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the financial position and results of operations. Any and all adjustments are of a normal and recurring nature. Although management believes the unaudited interim-related disclosures in these consolidated financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The results of operations and the cash flows for the nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries: Lonestar Resources America, Inc. (“LRAI”), Lonestar Resources, Inc. (“LRI”), Barnett Gas, LLC (“Barnett Gas”), Eagleford Gas, LLC (“Eagleford Gas”), Poplar Energy, LLC (“Poplar”), Eagleford Gas 2, LLC (“Eagleford Gas 2”), Eagleford Gas 3, LLC (“Eagleford Gas 3”), Eagleford Gas 4, LLC (“Eagleford Gas 4”), Eagleford Gas 5, LLC (“Eagleford Gas 5”), Eagleford Gas 6, LLC (“Eagleford Gas 6”), Eagleford Gas 7, LLC (“Eagleford Gas 7”), Eagleford Gas 8, LLC (“Eagleford Gas 8”), Lonestar Operating, LLC (“LNO”), Amadeus Petroleum, Inc. (“API”), T-N-T Engineering, Inc. (“TNT”) and Albany Services, LLC (“Albany”). All significant intercompany balances and transactions have been eliminated in consolidation. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | 2. Recently Issued Accounting Pronouncements In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)" in order, to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The update addresses eight different transaction types and clarifies how to classify each in the statement of cash flows, where previously there was unclear or no specific guidance. For public entities, this ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those years and early adoption is permitted in the year prior to the effective date. We expect to adopt this guidance in the first quarter of 2018. The impact is not expected to be material. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which introduces new guidance for estimating credit losses on certain types of financial instruments based on expected losses and the timing of the recognition of such losses. For public entities, this ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those years and early adoption is permitted in the year prior to the effective date. We expect to adopt this guidance in the first quarter of 2020. The impact is not expected to be material. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“Update 2016-09”), which seeks to simplify several aspects of the accounting for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public entities, Update 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. Management is currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. This ASU is effective for the annual period ending after December 15, 2018, and for annual interim periods thereafter. Early adoption is permitted. Management is currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17 to simplify income tax accounting. The update requires that all deferred tax assets and liabilities be classified as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. This update is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, and may be adopted earlier on a voluntary basis. Management is currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements. In April 2015, the FASB issued updated guidance regarding simplification of the presentation of debt issuance costs. The updated guidance requires debt issuance costs related to a recognized debt liability, other than those costs related to line of credit arrangements, be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, similar to the presentation for debt discounts and premiums, instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. This guidance became effective for the Company as of January 1, 2016. The Company’s adoption of this guidance was applied retrospectively and did not have a material impact on the Company’s consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements — Going Concern" (Subtopic 205-40). This ASU provides guidance on management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and in certain circumstances to provide related footnote disclosures. This ASU is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. Management does not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09 that introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but only for fiscal years beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method of adoption. Management is currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements and the method of adoption. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 3. Acquisitions and Divestitures On September 26, 2016, Amadeus Petroleum, Inc. and T-N-T Engineering, Inc. entered into a purchase and sale agreement with AVAD Energy Partners, LLC and Vendera Resources II, LLC to sell their remaining interest in producing wells and related oil and gas leases in its conventional properties located in multiple counties in Texas, effective as of July 1, 2016. Aggregate production related to the properties was 436 Boe/d during the third quarter of 2016. The sale price approximated $14,000,000. The transaction closed on October 31, 2016. As of September 30, 2016, the Company reported an impairment charge of approximately $29.1 million, representing carrying value in excess of fair value, less the cost to sell the properties. On August 2, 2016 the Company entered into a purchase and sale agreement with Juneau Energy, LLC (“Juneau”) whereby the Company obtained an undivided 50% of Seller’s interest in two producing wells and each well’s respective oil and gas leases covering approximately 1,300 net mineral acres located in Brazos County, Texas. The total purchase paid by the Company was $5,500,000 payable in 500,227 shares of the Company’s Class A voting common stock. On June 15, 2016, Amadeus Petroleum, Inc. and T-N-T Engineering, Inc. sold their entire interest in producing wells and related oil and gas leases in its Morgan’s Bluff property located in Orange County, Texas, effective as of July 1, 2016. Production related to the property was 86 Boe/d during the second quarter of 2016. The sale price approximated $2,200,000 and resulted in a gain of approximately $1,900,000. From January to March 2016 the Company paid approximately $770,000 to acquire approximately 220 net acres in La Salle County, TX surrounding Company developed areas and new undeveloped areas classified by the Company as Burns Ranch. From January to June 2016 the Company paid approximately $1,600,000 to acquire approximately 1,088 net acres in Gonzales County, TX for new well development in the Cyclone area. In January 2015 the Company exchanged its working interest in two non-operated wells and the underlying leasehold acreage for increased working interests in currently owned and operated property. The exchange resulted in a loss of $629,000. Additionally, the Company acquired 159 net acres in the Eagle Ford Shale trend in La Salle County, TX for $500,000 as a further component of the exchange. |
Restricted Certificate of Depos
Restricted Certificate of Deposit | 9 Months Ended |
Sep. 30, 2016 | |
Certificates Of Deposit [Abstract] | |
Restricted Certificate of Deposit | 4. Restricted Certificate of Deposit The Company is required to maintain a certificate of deposit (“CD”) issued by a municipality in Montana, in which certain of our drilling operations are located. This CD is pledged as collateral for a letter of credit issued by the Company’s bank to the municipality. The CD has a maturity date of March 8, 2017, and bears an interest rate of 0.25%. As this CD is expected to be renewed upon maturity and is not available for use in operations, it is classified as a noncurrent asset. |
Commodity Price Risk Activities
Commodity Price Risk Activities | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Commodity Price Risk Activities | 5. Commodity Price Risk Activities The Company has implemented a strategy to reduce the effects of volatility of oil and natural gas prices on the Company’s results of operations by securing fixed price contracts for a portion of its expected sales volumes. Inherent in the Company’s fixed price contracts, are certain business risks, including market risk and credit risk. Market risk is the risk that the price of oil and natural gas will change, either favorably or unfavorably, in response to changing market conditions. Credit risk is the risk of loss from nonperformance by the Company’s counterparty to a contract. The Company does not currently require collateral from any of its counterparties nor does its counterparties require collateral from the Company. At September 30, 2016, the Company had no open physical delivery obligations. The Company enters into certain commodity derivative instruments to mitigate commodity price risk associated with a portion of its future oil, NGL and natural gas production and related cash flows. The oil, NGL and natural gas revenues and cash flows are affected by changes in commodity product prices, which are volatile and cannot be accurately predicted. The objective for holding these commodity derivatives is to protect the operating revenues and cash flows related to a portion of the future oil, NGL and natural gas sales from the risk of significant declines in commodity prices, which helps ensure the Company’s ability to fund the capital budget. The Company has not designated any of the commodity derivatives as hedges under the applicable accounting standards. Consequently, all changes in fair value of these derivatives (realized and unrealized) are included in the consolidated statement of operations. As of September 30, 2016, the following derivative transactions were outstanding: Instrument Total Volume Settlement Period Fixed Price Oil – WTI Fixed Price Swap 48,500 Bbl October – December 2016 $ 84.45 Oil – WTI Fixed Price Swap 70,100 Bbl October – December 2016 90.45 Oil – WTI Fixed Price Swap 28,400 Bbl October – December 2016 63.20 Oil – WTI Fixed Price Swap 36,500 Bbl October – December 2016 56.90 Oil – WTI Fixed Price Swap 49,050 Bbl October – December 2016 42.11 Oil – WTI Fixed Price Swap 109,500 Bbl January – December 2017 51.05 Oil – WTI Fixed Price Swap 73,000 Bbl January – December 2017 50.60 Instrument Total Volume Settlement Period Puts Calls Oil – 3 Way Collar 365,100 Bbl January – December 2017 $40.00 / 60.00 $ 85.00 The above derivative contracts aggregate to 232,550 barrels or 2,528 barrels of oil per day for the remainder of 2016 and 547,600 barrels or 1,500 barrels of oil per day for 2017. All derivative contracts are carried at their fair value on the balance sheet and all changes in value are recorded in the consolidated statement of operations in gain or loss on derivative financial instruments. As of September 30, 2016 and December 31, 2015, all of the Company’s economic derivative hedge positions were with large financial institutions, which are not known to the Company to be in default on their derivative positions. The Company is exposed to credit risk to the extent of non-performance by the counterparties in the derivative contracts discussed above; however, the Company does not anticipate non-performance by such counterparties. None of the Company’s derivative instruments contain credit-risk related contingent features. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Non-recurring fair value measurements include certain nonfinancial assets and liabilities as may be acquired in a business combination and thereby measured at fair value; impaired oil and natural gas property assessments; warrants issued in equity offerings and the initial recognition of asset retirement obligations for which fair value is used. These estimates are derived from historical costs as well as management’s expectation of future cost environments. As there is no corroborating market activity to support the assumptions used, the Company has designated these estimates as Level 3. The Company periodically reviews for impairment its long-lived assets, including proved oil and natural gas properties accounted for under the successful efforts method of accounting. Based upon a purchase and sale agreement for the sale of the Company’s conventional oil and natural gas properties located in Texas, the Company reviewed the carrying value of the remaining acreage in this area and recorded an impairment of approximately $29.1 million during the three months ended September 30, 2016. In accordance with ASC 820, Fair Value Measurements and Disclosures Level 1 – Quoted prices for identical assets or liabilities in active markets. Level 2 – Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs derived principally from or corroborated by observable market data by correlation or other means. Level 3 – Unobservable inputs for the asset or liability. The fair value input hierarchy level to which an asset or liability measurement falls in its entirety is determined based on the lowest level input that is significant to the measurement in its entirety. The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015, for each fair value hierarchy level: Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total September 30, 2016 (unaudited) (In thousands) Assets: Commodity derivatives $ — $ 8,853 $ — $ 8,853 Liabilities: Commodity derivatives — (498 ) — $ (498 ) Warrant liability (5,738 ) $ (5,738 ) Total $ — $ 8,355 $ (5,738 ) $ 2,617 December 31, 2015 (In thousands) Assets: Commodity derivatives $ — $ 36,083 $ — $ 36,083 Liabilities: Commodity derivatives — — — $ — Total $ — $ 36,083 $ — $ 36,083 The book values of cash and cash equivalents, receivables for oil, NGL and natural gas sales, joint interest billings, notes and other receivables, accounts payable, and accrued liabilities approximate fair value due to the short-term nature of these instruments. The carrying value of debt approximates fair value since it is subject to a short-term floating interest rate that approximates the rate available to the Company, except for bonds, which are recorded at amortized cost less debt issuance costs. The fair value of the “8.750% Senior Notes” (as defined in Note 9 below) approximates $96.8 million as of September 30, 2016, and the notes are considered a Level 3 liability, as they are based on market transactions that occur infrequently as well as internally generated inputs. The Company’s other Level 3 financial liabilities measured at fair value consist of the warrant liability as of September 30, 2016. Significant unobservable inputs used in the fair value measurement of the warrants include the estimated term. Significant decreases in the estimated remaining period to exercise would result in a significantly lower fair value measurement. |
Oil and Gas Properties
Oil and Gas Properties | 9 Months Ended |
Sep. 30, 2016 | |
Oil And Gas Property [Abstract] | |
Oil and Gas Properties | 7. Oil and Gas Properties A summary of oil and gas properties follows: September 30, 2016 (unaudited) December 31, 2015 (In thousands) Proved properties and equipment $ 525,809 $ 584,692 Proved properties and equipment held for sale 79,537 — Unproved properties 71,658 70,298 Less accumulated depreciation, depletion, and amortization (160,793 ) (166,890 ) Less accumulated depreciation, depletion, amortization, and impairment on properties held for sale (65,922 ) — $ 450,289 $ 488,100 On September 26, 2016, Amadeus Petroleum, Inc. and T-N-T Engineering, Inc. entered into a purchase and sale agreement with AVAD Energy Partners, LLC and Vendera Resources II, LLC to sell their remaining interest in producing wells and related oil and gas leases in its conventional properties located in multiple counties in Texas, effective as of July 1, 2016. Aggregate production related to the properties was 436 Boe/d during the third quarter of 2016. The sale price approximated $14,000,000. The transaction closed on October 31, 2016. As of September 30, 2016, the Company reported an impairment charge of approximately $29.1 million, representing the carrying value in excess of fair value, less the cost to sell the properties. Asset retirement costs of $4 million and the related asset retirement liability of $4.5 million have been included in the carrying value of the properties as well as the impairment charge calculation. The table above provides separate amounts for the carrying value of the assets held for sale and the related accumulated depletion and impairment allowances. During 2016, certain leased acreage was set to expire in Montana as part of the Bakken, Three Forks, and Lower Lodgepole formations (the “Poplar Properties”). Based on our decision to defer drilling on the Poplar Properties during the three months ended June 30, 2016, we recorded an approximate $1.9 million impairment charge related to leased acreage expiring during 2016. This was calculated through the allocation of our current carrying value of the properties across our proportionate share of the acreage. If pricing continues to decline, it is reasonably likely that the Company may have to record impairment of its oil and gas properties subsequent to September 30, 2016. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities The accrued liabilities consist of the following: September 30, 2016 (unaudited) December 31, (In thousands) Bonus payable $ 1,604 $ 1,433 Payroll payable 2 28 Accrued interest 7,286 4,420 Accrued rent 328 410 Accrued expenses 1,928 1,401 Other 1,302 584 $ 12,450 $ 8,276 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt The Company’s debt consists of the following: September 30, 2016 (unaudited) December (In thousands) Senior Secured Credit Facility $ 94,500 $ 87,000 Second Lien Notes 35,087 — 8.750% Senior Notes 151,848 220,000 Less unamortized discount on 8.750% Senior Notes (1,898 ) (3,575 ) Less deferred financing costs on 8.750% Senior Notes (945 ) (1,785 ) Less deferred financing costs on Second Lien Notes (1,180 ) — Other 276 286 $ 277,688 $ 301,926 Senior Secured Credit Facility On July 28, 2015, LRAI closed a new $500,000,000 Senior Secured Credit Facility (the “Senior Secured Credit Facility”) which replaced a $400,000,000 Wells Fargo-led syndicated facility. The new facility was arranged by Citibank, N.A. and featured an expanded borrowing base of $180,000,000 as of December 31, 2015. The new facility provides additional liquidity for the Company and a lower interest rate. The new rate is a 25 basis point improvement over the LIBOR interest rate spread. The new facility provides for an extension in the maturity date to October 16, 2018, which represents a seven month extension over the Wells Fargo-led facility. The financial covenants contained in this new facility are substantially the same as the previous facility. Effective as of May 19, 2016, the borrowing base was reduced from $180,000,000 to $120,000,000. As of September 30, 2016 (giving effect to the amended covenant ratio discussed below) and December 31, 2015, LRAI was in compliance with all covenants including all financial ratios under the Senior Secured Credit Facility. As of September 30, 2016 and December 31, 2015, $94,500,000 and $87,000,000 was borrowed, respectively, under the Senior Secured Credit Facility. The Senior Secured Credit Facility may be used for loans and, subject to a $2,500,000 sub-limit, letters of credit. The Senior Secured Credit Facility provides for a commitment fee of 0.375% to 0.5% based on the unused portion of the borrowing base under the Senior Secured Credit Facility. Borrowings under the Senior Secured Credit Facility, at LRAI’s election, bear interest at either: (i) an alternate base rate (“ABR”) equal to the higher of (a) the Prime Rate, (b) the Federal Funds Effective Rate plus 0.5% per annum, and (c) the adjusted LIBO rate of a three-month interest period on such day plus 1.0%; or (ii) the adjusted LIBO rate, which is the rate stated on Reuters screen LIBOR01 page, for one, two, three, six or twelve months, as adjusted for statutory reserve requirements for Eurocurrency liabilities, plus, in each of the cases described in clauses (i) and (ii) above, an applicable margin ranging from 0.75% to 1.75% for ABR loans and from 1.75% to 2.75% for adjusted LIBO rate loans. The Senior Secured Credit Facility requires LRAI to maintain certain financial ratios and limits the amount of indebtedness LRAI can incur. Subject to certain permitted liens, LRAI’s obligations under the Senior Secured Credit Facility have been secured by the grant of a first priority lien on no less than 80% of the value of the proved oil and gas properties of the Company and its subsidiaries. In connection with the Senior Secured Credit Facility, LRAI and certain of its subsidiaries also entered into certain customary ancillary agreements and arrangements, which, among other things, provide that the indebtedness, obligations, and liabilities of the Company arising under or in connection with the Senior Secured Credit Facility are unconditionally guaranteed by such subsidiaries. Effective as of July 27, 2016, LRAI, the several banks and other financial institutions party thereto (collectively, the “Consenting Lenders”) and Citibank, N.A., in its capacity as administrative agent for the lenders (the “Administrative Agent”) entered into the Third Amendment to Credit Agreement and Limited Waiver (the “Amendment”) to that certain Credit Agreement dated as of July 28, 2015, by and among LRAI, the Consenting Lenders (together with the other banks and financial institutions party thereto, the “Lenders”) and the Administrative Agent (as amended, supplemented and modified, the “Credit Agreement”) to (a) permit LRAI to incur the second lien obligations contemplated by the Securities Purchase Agreement with Leucadia National Corporation and others (as described below) and LRAI’s contemplated use of proceeds thereof, (b) increase the applicable margin for Eurodollar and ABR loans and letter of credit fees by 0.75% across all levels of the previously applicable pricing grid, (c) modify the fee payable on the actual daily unused amount of the aggregate commitments to a flat 0.50% across all levels of the pricing grid, (d) increase the minimum percentage of the value of LRAI’s oil and gas properties that must be mortgaged as collateral for the obligations under the Credit Agreement and the other loan documents from 80% to 90%, (e) modify the maximum leverage ratio thresholds from 4.0 to 1.0 to (i) 4.75 to 1.0 for the four quarterly periods ending June 30, 2016, (ii) 4.50 to 1.0 for the four quarterly periods ending September 30, 2016, (iii) 4.25 to 1.0 for the four quarterly periods ending December 31, 2016 and (iv) 4.00 to 1.0 for all periods thereafter, (f) prohibit distributions to the Predecessor for general and administrative expenses after September 30, 2016 and (g) amend certain other provisions of the Credit Agreement as more specifically set forth in the Amendment. 8.750% Senior Notes On April 4, 2014, LRAI issued at par $220,000,000 of 8.750% Senior Unsecured Notes due April 15, 2019 (the “8.750% Senior Notes”) to U.S. based institutional investors. The net proceeds from the offering of approximately $212,000,000 (after deducting purchasers’ discounts and offering expenses) were used to repay LRAI’s Senior Secured Credit Facility and 2nd lien facility, and for general corporate purposes. Under the 2nd lien term loan agreement, LRAI was required to pay a prepayment fee of $1,100,000 in connection with the early prepayment of the facility equal to 2.0% of the principal balance that was prepaid. This facility was terminated upon repayment. On or after April 15, 2016, LRAI may redeem the 8.750% Senior Notes in whole or in part at the redemption prices (expressed as percentages of the principal amount) set forth in the following table plus accrued and unpaid interest, if any, on the 8.750% Senior Notes redeemed, to the applicable date of redemption, if redeemed during the twelve-month period beginning on April 15 of the years indicated below: Year Percentage 2016 106.563 % 2017 104.375 % 2018 and thereafter 100.000 % In addition, upon a change of control of LRAI, holders of the 8.750% Senior Notes will have the right to require LRAI to repurchase all or any part of their 8.750% Senior Notes for cash at a price equal to 101% of the aggregate principal amount of the 8.750% Senior Notes repurchased, plus any accrued and unpaid interest. The 8.750% Senior Notes were issued under and governed by an Indenture dated April 4, 2014, between LRAI, Wells Fargo Bank, National Association, as trustee and LRAI’s subsidiaries named therein as guarantors (the “Indenture”). The Indenture contains covenants that, among other things, limit the ability of LRAI and its subsidiaries to: incur indebtedness; pay dividends or make other distributions on stock; purchase or redeem stock or subordinated indebtedness; make investments; create liens; enter into transactions with affiliates; sell assets; refinance certain indebtedness; and merge with or into other companies or transfer substantially all of LRAI’s assets. Debt Issuance Costs The Company capitalizes certain direct costs associated with the issuance of long-term debt and amortizes such costs over the lives of the respective debt. At September 30, 2016 and December 2015, the Company had approximately $1,300,000 and $1,100,000, respectively, of debt issuance costs associated with issuance of the Senior Secured Credit Facility remaining that are being amortized over the lives of the respective debt which are recorded as other non-current assets in the consolidated balance sheets. Securities Purchase Agreement and Second Lien Notes On August 2, 2016, the Company entered into a Securities Purchase Agreement with Juneau Energy, LLC, as initial purchaser (“Juneau”), Leucadia National Corporation (“Leucadia”), as guarantor of Juneau’s obligations, the other purchasers party thereto and Jefferies, LLC, in its capacity as the collateral agent for the purchasers, relating to the issuance and sale of (i) up to $49,900,000 aggregate principal amount of LRAI’s 12% senior secured second lien notes due 2021 (the “Second Lien Notes”) and (ii) five-year warrants to purchase up to an aggregate 998,000 shares of the Company’s Class A voting common stock at a price equal to $5.00 per share (the “Warrants”). The Second Lien Notes are secured by second-priority liens on substantially all of LRAI’s and its subsidiaries’ assets to the extent such assets secure obligations under the Senior Secured Credit Facility. As of September 30, 2016, LRAI has issued $38.0 million in aggregate principal amount of Second Lien Notes and the Company has issued Warrants to purchase 760,000 shares of its Class A voting common stock. Proceeds from the Second Lien Notes issuance were used to repurchase approximately $68.2 million in aggregate principal amount of the 8.750% Senior Notes in privately negotiated open market repurchases with holders of such notes, and to pay related fees and expenses related to the foregoing. The repurchase amounts paid were approximately $36.2 million in cash. Net of related fees, such repurchases resulted in a gain on debt extinguishment of approximately $29.4 million. Repurchase Facilitation Agreement On October 26, 2016, effective September 29, 2016, Lonestar Resources US, Inc. (the “Company”), by and on behalf of itself and certain of its subsidiaries, entered into an Amended and Restated Repurchase Facilitation Agreement (the “Amended and Restated Agreement”) with Seaport Global Securities LLC, a Delaware limited liability company (“Seaport Global”). Pursuant to the Amended and Restated Agreement, Seaport Global has agreed to provide the Company with financing (“Gap Financing”) from time to time in connection with the repurchase of the 8.750% Senior Notes, to be acquired by Seaport Global on the Company’s behalf in one or more open market purchases. The Amended and Restated Agreement amends and restates that certain Facilitation Agreement entered into on September 29, 2016 (the “Original Agreement”), between the Company and Seaport Global, which was previously disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission (the “Commission”) on October 5, 2016. Other than as provided below, the terms of the Amended and Restated Agreement are substantially the same as those set forth in the Original Agreement. Under the Amended and Restated Agreement, the Company has agreed to repay Seaport Global for Gap Financing, concurrently with the consummation of a public equity offering by the Company of its Class A voting common stock , in an amount of cash (the “Cash Payment Amount”) equal to (i) one hundred five percent (105%) of the amount of the Gap Financing if paid before December 31, 2016 and (ii) one hundred eleven and one tenth percent (111.1%) of the amount of Gap Financing if paid on or after January 1, 2017. To the extent that the Company is unwilling or otherwise unable to consummate such public equity offering, the Company has agreed to issue up to the Share Cap (as defined below) in shares of Class A voting common stock in an amount equal to the purchase price of any 8.750% Senior Notes the repurchase of which is financed by Seaport Global, divided by (i) with respect to any financing prior to the approval of any such issuance by holders of a majority of the issued and outstanding shares of Class A voting common stock (“Stockholder Approval”), 90% of the closing price of the Class A voting common stock on September 28, 2016 and (ii) with respect to any financing subsequent to the Stockholder Approval of shares, 90% of the closing price of the Class A voting common stock on the most recently completed trading date prior to the date that shares of Class A voting common stock are delivered to Seaport Global. The number of shares of Class A voting common stock that the Company may issue to Seaport Global under the Facilitation Agreement (the “Share Cap”) is limited to the lesser of (a) 460,000 shares of Class A voting common stock and (b) a number of shares of Class A voting common stock that would, as a result of the issuance thereof to Seaport Global, cause EFR Guernsey Holding Limited, the Company’s majority stockholder (the “EFR Guernsey”), to hold less than a majority of the issued and outstanding shares of Class A voting common stock. As of September 30, 2016, the Company recorded $2,063,320 as long-term debt on its balance sheet as a result of this Gap Financing. |
Stock Options
Stock Options | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options | 10. Stock Options Determining Fair Value of Stock Options In determining the fair value of stock option grants, the Company utilized the following assumptions: Valuation and Amortization Method. The Company estimates the fair value of stock option awards on the date of grant using the Black-Scholes-Merton valuation model. The fair value of all awards is expensed using the “graded-vesting method.” Expected Life. The expected life of stock options granted represents the period of time that stock options are expected, on average, to be outstanding. The Company determined the expected life to be 3.5 years, for all stock options issued with three-year vesting periods and four-year grant expirations. Expected Volatility. Using the Black-Scholes-Merton valuation model, the Company estimates the volatility of Predecessor’s common shares at the beginning of the quarter in which the stock option is granted. The volatility of 58.6% is based on weighted average historical movements of Predecessor’s common share price on the ASX over a period that approximates the expected life. Risk-Free Interest Rate. The Company utilizes a risk-free interest rate equal to the rate of U.S. Treasury zero-coupon issues as of the date of grant with a term equivalent to the stock option’s expected life. Expected Dividend Yield. The Predecessor and the Successor have not paid any cash dividends on its common shares, and the Successor does not anticipate paying any cash dividends in the foreseeable future. Consequently, a dividend yield of zero is utilized in the Black-Scholes-Merton valuation model. Expected Forfeitures. The Company has experienced limited forfeitures and therefore has not discounted expenses for forfeitures at the reporting date. Stock Option Activity For the nine months ended September 30, 2016, no stock options were exercised. The following tables summarize certain information related to outstanding stock options under the Lonestar Resources Limited 2012 Employee Share Option Plan and the Lonestar Resources US Inc. 2016 Incentive Plan, which replaced the Lonestar Resources Limited 2012 Employee Share Option Plan following the Reorganization: Shares Weighted Average Exercise Price Per Share Weighted Remaining Contractual Term (in years) Outstanding at December 31, 2015 849,936 $ 15.50 1.0 Options vested and exercisable at December 31, 2015 807,686 15.50 1.0 Granted 35,000 15.00 2.0 Exercised — — — Canceled/Expired (64,667 ) 18.00 — Forfeited — — — Outstanding at September 30, 2016 820,269 $ 15.00 0.5 Options vested and exercisable at September 30, 2016 778,019 $ 15.00 0.5 Shares Weighted Average Fair Value per Share Weighted Average Exercise Price per share Weighted Average Remaining Contractual Term (in years) Outstanding non-vested options at December 31, 2015 42,250 $ 9.00 $ 15.50 1.0 Granted 35,000 1.90 15.00 2.25 Vested (35,000 ) 1.90 15.00 2.25 Forfeited — — — — Outstanding non-vested options at September 30, 2016 42,250 $ 9.00 $ 15.50 0.25 Stock-Based Compensation Expense For the three and nine month periods ended September 30, 2016, the Company recorded stock-based compensation expense for stock options granted using the fair-value method of $121,986 and $312,638, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings Per Share In accordance with the provisions of current authoritative guidance, basic earnings or loss per share shown on the Consolidated Statements of Operations is computed on the basis of the weighted average number of common shares outstanding during the periods. Diluted earnings or loss per share is computed based upon the weighted average number of common shares outstanding plus the assumed issuance of common shares for all potentially dilutive securities. The Company includes the number of stock options in the calculation of diluted weighted average shares outstanding when the grant date or exercise prices are less than the average market prices of the Company’s Class A voting common stock for the period. When a loss from operations exists, all potentially dilutive common shares outstanding are anti-dilutive and therefore excluded from the calculation of diluted weighted average shares outstanding. There is no dilutive effect for the three and nine months ended September 30, 2016 as the Company reported a loss from operations for those periods. The Company had net income from operations at the three months ended September 30, 2015, however, as the options were considered to be out of the money, the potentially dilutive common shares outstanding are treated as anti-dilutive and therefore, excluded from the calculation of diluted weighted average shares outstanding. The following table presents unaudited earnings per share of Lonestar Resources US Inc., assuming that the 1 for 2 reverse stock split upon Reorganization had occurred at the beginning of the three and nine month periods ended September 30, 2016 and 2015: Unaudited Earnings Per Share (After Reorganization) Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Net income (loss) per common share: Basic $ (1.44 ) $ 0.88 $ (4.64 ) $ (0.33 ) Diluted (1.44 ) 0.88 (4.64 ) (0.33 ) Weighted average common shares outstanding: Basic 7,842,586 7,522,025 7,629,896 7,522,025 Diluted 7,842,586 7,522,025 7,629,896 7,522,025 |
Related Party Activity
Related Party Activity | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Activity | 12. Related Party Activities In April 2014, the Company loaned $539,000 in total to Frank D. Bracken, III and Thomas H. Olle to assist with their tax obligations as a result of stock compensation awarded to them in 2013. The loans were on arms-length commercial terms and were settled in full in January 2016. Butterfly Flaps, Ltd, a company in which Dr. Christopher Rowland (a director of the Company) owns an interest, has performed consultancy work for the Company since 2013 covering various strategic, tax structuring and investor matters at a cost of approximately $25,000 per quarter. New Tech Global Ventures, LLC, a company in which Daniel R. Lockwood (a director of the Company) owns a limited partnership interest, has provided field engineering staff and consultancy services for the Company since 2013. The total cost for such services was approximately $78,000 and $149,000 for the three months ended September 30, 2016 and 2015, respectively and approximately $465,000 and $763,000 in the nine months ended September 30, 2016 and 2015, respectively. Mitchell Wells, who has been a director of the Company since December 2014, has provided consultancy services as its Company Secretary since January 2013. These services have been provided through BlueSkye Pty Ltd, for which Mr. Wells is the sole Director and shareholder. BlueSkye Pty Ltd was paid approximately $24,000 and $36,000 for the three months ended September 30, 2016 and 2015, respectively and approximately $95,000 and $107,000 for the nine months ended September 30, 2016 and 2015, respectively. He has not received any additional compensation for his service as a Director. |
Equity Backstop Commitment
Equity Backstop Commitment | 9 Months Ended |
Sep. 30, 2016 | |
Equity Purchase Agreement [Abstract] | |
Equity Backstop Commitment | 13. Equity Backstop Commitment Pursuant to the Securities Purchase Agreement discussed in Note 9 above with Juneau and Leucadia, in the event that the Company elects to pursue an equity offering prior to December 31, 2016, Leucadia has agreed to purchase the number of shares of Class A voting common stock equal to (a) $20,000,000 (or such lesser amount as the Company requests) divided by (b) the offering price to investors in a registered public offering of securities that is completed on or before December 31, 2016. Leucadia’s agreement to purchase the Class A voting common stock is conditioned on, among other things, the Company (i) selecting a lead underwriter approved by Leucadia, (ii) having, together with its subsidiaries, no more than $295,000,000 of long-term debt outstanding (net of cash and cash equivalents), and (iii) the equity order book in such offering is no less than $40,000,000, excluding Leucadia’s commitment. In connection with Leucadia’s commitment, the Company has agreed to pay Leucadia a fee equal to $1,000,000, payable whether such an offering is launched or consummated, upon the earlier of (i) the closing of such offering, (ii) the termination of such offering and (iii) December 31, 2016. This amount is recorded as prepaid expenses and other and accrued liabilities in the consolidated balance sheet. In the event Leucadia purchases not less than their commitment amount, the Company agreed to use commercially reasonable efforts to enter into arrangements to provide Leucadia with the right to appoint one director to the board of directors of the Company, provided that such right will terminate at such time as Leucadia and its affiliates own a number of shares of Class A voting common stock equal to less than 50% of the shares purchased by Leucadia and its affiliates in such offering. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events In preparing the consolidated financial statements, management has evaluated all subsequent events and transactions for potential recognition or disclosure through the date the accompanying consolidated financial statements were issued. Board Representation Agreement On October 26, 2016, the Company entered into a Board Representation Agreement (“Board Representation Agreement”) with EF Realisation Company Limited (“EF Realisation”). Under the Board Representation Agreement, as long as EFR Guernsey, a wholly-owned subsidiary of EF Realisation and the direct holder of the majority of the Company’s Class A voting common stock, owns 15% or more of the issued and outstanding shares of Class A voting common stock, it has the right to designate up to, but no more than, two directors (each, a “Designee”) to serve on the board of directors of the Company (the “Board”), and for as long as EFR Guernsey owns at least 10% but less than 15% of the issued and outstanding Class A voting common stock, it has the right to designate up to, but no more than, one Designee to serve on the Board. One Designee, as directed by EF Realisation, must serve on each committee of the Board provided that such appointment would not contravene any applicable rules and regulations of the NASDAQ Stock Market or the Securities and Exchange Commission. Registration Rights Agreement On October 26, 2016, the Company entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with EF Realisation. Pursuant to the Registration Rights Agreement, subject to certain limitations, the Company agreed to register for resale of the Class A voting common stock held by EFR Guernsey (“EF Realisation Stock”). The Company agreed to file a registration statement (the “Registration Statement”) providing for the resale of EF Realisation Stock no later than the earlier of (the “Filing Deadline”): (i) October 26, 2017, and (ii) 30 days after the date the Company first becomes eligible to file a registration statement on Form S-3. The Company agreed to cause the Registration Statement to become effective no later than 120 days after the Filing Deadline. If a Registration Statement is not effective on or prior to the Filing Deadline, EF Realisation will have certain demand registration rights. Subject to certain exceptions, if at any time the Company proposes to register an offering of equity securities or conduct an underwritten offering of its Class A voting common stock, whether or not for its own account, then the Company must notify EF Realisation of such proposal to allow them to include a specified number of their shares of Class A voting common stock in that registration statement or underwritten offering, as applicable. The registration rights provided under the Registration Rights Agreement are subject to certain conditions and limitations. The Company agreed to generally pay all registration expenses in connection with its obligations under the Registration Rights Agreement, regardless of whether a registration statement is filed or becomes effective. |
Nature of Business and Presen21
Nature of Business and Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim consolidated financial statements have not been audited by independent public accountants, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the financial position and results of operations. Any and all adjustments are of a normal and recurring nature. Although management believes the unaudited interim-related disclosures in these consolidated financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The results of operations and the cash flows for the nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries: Lonestar Resources America, Inc. (“LRAI”), Lonestar Resources, Inc. (“LRI”), Barnett Gas, LLC (“Barnett Gas”), Eagleford Gas, LLC (“Eagleford Gas”), Poplar Energy, LLC (“Poplar”), Eagleford Gas 2, LLC (“Eagleford Gas 2”), Eagleford Gas 3, LLC (“Eagleford Gas 3”), Eagleford Gas 4, LLC (“Eagleford Gas 4”), Eagleford Gas 5, LLC (“Eagleford Gas 5”), Eagleford Gas 6, LLC (“Eagleford Gas 6”), Eagleford Gas 7, LLC (“Eagleford Gas 7”), Eagleford Gas 8, LLC (“Eagleford Gas 8”), Lonestar Operating, LLC (“LNO”), Amadeus Petroleum, Inc. (“API”), T-N-T Engineering, Inc. (“TNT”) and Albany Services, LLC (“Albany”). All significant intercompany balances and transactions have been eliminated in consolidation. |
Recently Issued Accounting Pronouncements | In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)" in order, to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The update addresses eight different transaction types and clarifies how to classify each in the statement of cash flows, where previously there was unclear or no specific guidance. For public entities, this ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those years and early adoption is permitted in the year prior to the effective date. We expect to adopt this guidance in the first quarter of 2018. The impact is not expected to be material. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which introduces new guidance for estimating credit losses on certain types of financial instruments based on expected losses and the timing of the recognition of such losses. For public entities, this ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those years and early adoption is permitted in the year prior to the effective date. We expect to adopt this guidance in the first quarter of 2020. The impact is not expected to be material. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“Update 2016-09”), which seeks to simplify several aspects of the accounting for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public entities, Update 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. Management is currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. This ASU is effective for the annual period ending after December 15, 2018, and for annual interim periods thereafter. Early adoption is permitted. Management is currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17 to simplify income tax accounting. The update requires that all deferred tax assets and liabilities be classified as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. This update is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, and may be adopted earlier on a voluntary basis. Management is currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements. In April 2015, the FASB issued updated guidance regarding simplification of the presentation of debt issuance costs. The updated guidance requires debt issuance costs related to a recognized debt liability, other than those costs related to line of credit arrangements, be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, similar to the presentation for debt discounts and premiums, instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. This guidance became effective for the Company as of January 1, 2016. The Company’s adoption of this guidance was applied retrospectively and did not have a material impact on the Company’s consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements — Going Concern" (Subtopic 205-40). This ASU provides guidance on management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and in certain circumstances to provide related footnote disclosures. This ASU is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. Management does not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09 that introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but only for fiscal years beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method of adoption. Management is currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements and the method of adoption. |
Commodity Price Risk Activiti22
Commodity Price Risk Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Transactions Outstanding | As of September 30, 2016, the following derivative transactions were outstanding: Instrument Total Volume Settlement Period Fixed Price Oil – WTI Fixed Price Swap 48,500 Bbl October – December 2016 $ 84.45 Oil – WTI Fixed Price Swap 70,100 Bbl October – December 2016 90.45 Oil – WTI Fixed Price Swap 28,400 Bbl October – December 2016 63.20 Oil – WTI Fixed Price Swap 36,500 Bbl October – December 2016 56.90 Oil – WTI Fixed Price Swap 49,050 Bbl October – December 2016 42.11 Oil – WTI Fixed Price Swap 109,500 Bbl January – December 2017 51.05 Oil – WTI Fixed Price Swap 73,000 Bbl January – December 2017 50.60 Instrument Total Volume Settlement Period Puts Calls Oil – 3 Way Collar 365,100 Bbl January – December 2017 $40.00 / 60.00 $ 85.00 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015, for each fair value hierarchy level: Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total September 30, 2016 (unaudited) (In thousands) Assets: Commodity derivatives $ — $ 8,853 $ — $ 8,853 Liabilities: Commodity derivatives — (498 ) — $ (498 ) Warrant liability (5,738 ) $ (5,738 ) Total $ — $ 8,355 $ (5,738 ) $ 2,617 December 31, 2015 (In thousands) Assets: Commodity derivatives $ — $ 36,083 $ — $ 36,083 Liabilities: Commodity derivatives — — — $ — Total $ — $ 36,083 $ — $ 36,083 |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Oil And Gas Property [Abstract] | |
Summary of Oil and Gas Properties | A summary of oil and gas properties follows: September 30, 2016 (unaudited) December 31, 2015 (In thousands) Proved properties and equipment $ 525,809 $ 584,692 Proved properties and equipment held for sale 79,537 — Unproved properties 71,658 70,298 Less accumulated depreciation, depletion, and amortization (160,793 ) (166,890 ) Less accumulated depreciation, depletion, amortization, and impairment on properties held for sale (65,922 ) — $ 450,289 $ 488,100 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | The accrued liabilities consist of the following: September 30, 2016 (unaudited) December 31, (In thousands) Bonus payable $ 1,604 $ 1,433 Payroll payable 2 28 Accrued interest 7,286 4,420 Accrued rent 328 410 Accrued expenses 1,928 1,401 Other 1,302 584 $ 12,450 $ 8,276 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Long-Term Debt | The Company’s debt consists of the following: September 30, 2016 (unaudited) December (In thousands) Senior Secured Credit Facility $ 94,500 $ 87,000 Second Lien Notes 35,087 — 8.750% Senior Notes 151,848 220,000 Less unamortized discount on 8.750% Senior Notes (1,898 ) (3,575 ) Less deferred financing costs on 8.750% Senior Notes (945 ) (1,785 ) Less deferred financing costs on Second Lien Notes (1,180 ) — Other 276 286 $ 277,688 $ 301,926 |
LRAI | |
Schedule of Redemption Prices Expressed as Percentages of Principal Amount | On or after April 15, 2016, LRAI may redeem the 8.750% Senior Notes in whole or in part at the redemption prices (expressed as percentages of the principal amount) set forth in the following table plus accrued and unpaid interest, if any, on the 8.750% Senior Notes redeemed, to the applicable date of redemption, if redeemed during the twelve-month period beginning on April 15 of the years indicated below: Year Percentage 2016 106.563 % 2017 104.375 % 2018 and thereafter 100.000 % |
Stock Options (Tables)
Stock Options (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Outstanding Stock Options | The following tables summarize certain information related to outstanding stock options under the Lonestar Resources Limited 2012 Employee Share Option Plan and the Lonestar Resources US Inc. 2016 Incentive Plan, which replaced the Lonestar Resources Limited 2012 Employee Share Option Plan following the Reorganization: Shares Weighted Average Exercise Price Per Share Weighted Remaining Contractual Term (in years) Outstanding at December 31, 2015 849,936 $ 15.50 1.0 Options vested and exercisable at December 31, 2015 807,686 15.50 1.0 Granted 35,000 15.00 2.0 Exercised — — — Canceled/Expired (64,667 ) 18.00 — Forfeited — — — Outstanding at September 30, 2016 820,269 $ 15.00 0.5 Options vested and exercisable at September 30, 2016 778,019 $ 15.00 0.5 Shares Weighted Average Fair Value per Share Weighted Average Exercise Price per share Weighted Average Remaining Contractual Term (in years) Outstanding non-vested options at December 31, 2015 42,250 $ 9.00 $ 15.50 1.0 Granted 35,000 1.90 15.00 2.25 Vested (35,000 ) 1.90 15.00 2.25 Forfeited — — — — Outstanding non-vested options at September 30, 2016 42,250 $ 9.00 $ 15.50 0.25 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Unaudited Earnings Per Share (After Reorganization) | The following table presents unaudited earnings per share of Lonestar Resources US Inc., assuming that the 1 for 2 reverse stock split upon Reorganization had occurred at the beginning of the three and nine month periods ended September 30, 2016 and 2015: Unaudited Earnings Per Share (After Reorganization) Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Net income (loss) per common share: Basic $ (1.44 ) $ 0.88 $ (4.64 ) $ (0.33 ) Diluted (1.44 ) 0.88 (4.64 ) (0.33 ) Weighted average common shares outstanding: Basic 7,842,586 7,522,025 7,629,896 7,522,025 Diluted 7,842,586 7,522,025 7,629,896 7,522,025 |
Nature of Business and Presen29
Nature of Business and Presentation - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Nature Of Business And Presentation [Abstract] | |
Gain (loss) recorded under reorganization | $ 0 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) | Sep. 26, 2016USD ($) | Aug. 02, 2016USD ($)aWellshares | Jun. 15, 2016USD ($) | Jan. 31, 2015USD ($)aWell | Sep. 30, 2016USD ($)Boe | Jun. 30, 2016aBoe | Mar. 31, 2016USD ($)a | Jun. 30, 2016USD ($)a | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||
Purchase and sale agreement date | Sep. 26, 2016 | |||||||||
Production related to property barrels of oil equivalents per day | Boe | 436 | 86 | ||||||||
Business divestitures sale price | $ 14,000,000 | $ 2,200,000 | ||||||||
Business divestiture closing date | Oct. 31, 2016 | |||||||||
Impairment of oil and gas properties | $ 29,100,000 | $ 29,100,000 | ||||||||
Total purchase price paid | $ 3,115,000 | $ 7,032,000 | ||||||||
Gain (loss) on divestitures of business | $ 1,900,000 | |||||||||
Business divestiture effective date of divestiture | Jul. 1, 2016 | |||||||||
Loss on exchange of oil and gas properties | $ (629,000) | |||||||||
Number of non-operated wells working interest exchanged | Well | 2 | |||||||||
La Salle | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire land | $ 770,000 | |||||||||
Area of land acquired | a | 220 | |||||||||
Gonzales | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire land | $ 1,600,000 | |||||||||
Area of land acquired | a | 1,088 | 1,088 | ||||||||
Juneau Energy, LLC | Brazos County | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase and sale agreement date | Aug. 2, 2016 | |||||||||
Net mineral acres | a | 1,300 | |||||||||
Total purchase price paid | $ 5,500,000 | |||||||||
Productive Oil Wells, Number of Wells | Well | 2 | |||||||||
Undivided interest acquired in producing wells | 50.00% | |||||||||
Eagle Ford Shale | La Salle | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire land | $ 500,000 | |||||||||
Area of land acquired | a | 159 | |||||||||
Common Class A | Juneau Energy, LLC | Brazos County | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Shares of common stock payable in total purchase | shares | 500,227 |
Restricted Certificate of Dep31
Restricted Certificate of Deposit - Additional Information (Details) - Restricted Certificate of Deposit | 9 Months Ended |
Sep. 30, 2016 | |
Certificates Of Deposit [Line Items] | |
Investment maturity date | Mar. 8, 2017 |
Investment interest rate | 0.25% |
Commodity Price Risk Activiti32
Commodity Price Risk Activities - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2016bbl / dDeliveryObligationbbl | |
Derivative [Line Items] | |
Number of open physical obligations | DeliveryObligation | 0 |
Derivative Contracts, remainder of 2016 | |
Derivative [Line Items] | |
Derivative contracts, aggregate volume | bbl | 232,550 |
Derivative contracts, aggregate volume per day | bbl / d | 2,528 |
Derivative Contracts, 2017 | |
Derivative [Line Items] | |
Derivative contracts, aggregate volume | bbl | 547,600 |
Derivative contracts, aggregate volume per day | bbl / d | 1,500 |
Commodity Price Risk Activiti33
Commodity Price Risk Activities - Schedule of Derivative Transactions Outstanding (Details) | 9 Months Ended |
Sep. 30, 2016$ / bblbbl | |
Oil – WTI Fixed Price Swap - $84.45 - Settlement Period - October - December 2016 | |
Derivative [Line Items] | |
Total Volume | bbl | 48,500 |
Fixed Price | 84.45 |
Oil – WTI Fixed Price Swap - $90.45 - Settlement Period - October - December 2016 | |
Derivative [Line Items] | |
Total Volume | bbl | 70,100 |
Fixed Price | 90.45 |
Oil – WTI Fixed Price Swap - $63.20 - Settlement Period - October - December 2016 | |
Derivative [Line Items] | |
Total Volume | bbl | 28,400 |
Fixed Price | 63.20 |
Oil – WTI Fixed Price Swap - $56.90 - Settlement Period - October - December 2016 | |
Derivative [Line Items] | |
Total Volume | bbl | 36,500 |
Fixed Price | 56.90 |
Oil – WTI Fixed Price Swap - $42.11 - Settlement Period - October - December 2016 | |
Derivative [Line Items] | |
Total Volume | bbl | 49,050 |
Fixed Price | 42.11 |
Oil – WTI Fixed Price Swap - $51.05 - Settlement Period - January - December 2017 | |
Derivative [Line Items] | |
Total Volume | bbl | 109,500 |
Fixed Price | 51.05 |
Oil – WTI Fixed Price Swap - $50.60 - Settlement Period - January - December 2017 | |
Derivative [Line Items] | |
Total Volume | bbl | 73,000 |
Fixed Price | 50.60 |
Oil – 3 Way Collar - Settlement Period - January - December 2017 | |
Derivative [Line Items] | |
Total Volume | bbl | 365,100 |
Oil – 3 Way Collar - Settlement Period - January - December 2017 | Puts | Minimum | |
Derivative [Line Items] | |
Fixed Price | 40 |
Oil – 3 Way Collar - Settlement Period - January - December 2017 | Puts | Maximum | |
Derivative [Line Items] | |
Fixed Price | 60 |
Oil – 3 Way Collar - Settlement Period - January - December 2017 | Calls | |
Derivative [Line Items] | |
Fixed Price | 85 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Impairment of oil and gas properties | $ 29,144 | $ 31,082 |
8.750% Senior Notes Due April 15, 2019 | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes | $ 96,800 | $ 96,800 |
Debt instrument interest rate | 8.75% | 8.75% |
Schedule of Assets and Liabilit
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrant liability | $ (5,738) | |
Total | 2,617 | $ 36,083 |
Commodity Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 8,853 | 36,083 |
Liabilities | (498) | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 8,355 | 36,083 |
Significant Other Observable Inputs (Level 2) | Commodity Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 8,853 | $ 36,083 |
Liabilities | (498) | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrant liability | (5,738) | |
Total | $ (5,738) |
Oil and Gas Properties - Summar
Oil and Gas Properties - Summary of Oil and Gas Properties (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Oil And Gas Exploration And Production Industries Disclosures [Abstract] | ||
Proved properties and equipment | $ 525,809 | $ 584,692 |
Proved properties and equipment held for sale | 79,537 | |
Unproved properties | 71,658 | 70,298 |
Less accumulated depreciation, depletion, and amortization | (160,793) | (166,890) |
Less accumulated depreciation, depletion, amortization, and impairment on properties held for sale | (65,922) | |
Oil and gas property, net | $ 450,289 | $ 488,100 |
Oil and Gas Properties - Additi
Oil and Gas Properties - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)Boe | Jun. 30, 2016USD ($)Boe | Sep. 30, 2016USD ($) | Sep. 26, 2016USD ($) | Jun. 15, 2016USD ($) | |
Oil And Gas Exploration And Production Industries Disclosures [Abstract] | |||||
Production related to property barrels of oil equivalents per day | Boe | 436 | 86 | |||
Business divestitures sale price | $ 14,000,000 | $ 2,200,000 | |||
Business divestiture closing date | Oct. 31, 2016 | ||||
Impairment of oil and gas properties | $ 29,100,000 | $ 29,100,000 | |||
Asset retirement costs | 4,000,000 | ||||
Related asset retirement liability | $ 4,505,000 | $ 4,505,000 | |||
Impairment related to leased acreage | $ 1,900,000 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Bonus payable | $ 1,604 | $ 1,433 |
Payroll payable | 2 | 28 |
Accrued interest | 7,286 | 4,420 |
Accrued rent | 328 | 410 |
Accrued expenses | 1,928 | 1,401 |
Other | 1,302 | 584 |
Accrued liabilities | $ 12,450 | $ 8,276 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Senior Secured Credit Facility | $ 94,500 | $ 87,000 |
Second Lien Notes | 35,087 | |
8.750% Senior Notes | 151,848 | 220,000 |
Less unamortized discount on 8.750% Senior Notes | (1,898) | (3,575) |
Other | 276 | 286 |
Long-term debt | 277,688 | 301,926 |
8.750% Senior Notes | ||
Debt Instrument [Line Items] | ||
Less deferred financing costs | (945) | $ (1,785) |
Second Lien Notes | ||
Debt Instrument [Line Items] | ||
Less deferred financing costs | $ (1,180) |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility - Additional Information (Details) - USD ($) | Jul. 27, 2016 | Jul. 28, 2015 | Sep. 30, 2016 | May 19, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||||
Senior Secured Credit Facility | $ 94,500,000 | $ 87,000,000 | |||
Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Senior secured credit facility sub limit | $ 2,500,000 | ||||
Senior Secured Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.375% | ||||
Senior Secured Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.50% | ||||
Third Amendment to Credit Agreement and Limited Waiver (the “Amendment”) | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility commitment fee percentage | 0.50% | ||||
Leverage ratio | 400.00% | ||||
Third Amendment to Credit Agreement and Limited Waiver (the “Amendment”) | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Increase margin on loans | 0.75% | ||||
Third Amendment to Credit Agreement and Limited Waiver (the “Amendment”) | Quarterly Periods Ending June 30, 2016 | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio | 475.00% | ||||
Third Amendment to Credit Agreement and Limited Waiver (the “Amendment”) | Quarterly Periods Ending September 30, 2016 | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio | 450.00% | ||||
Third Amendment to Credit Agreement and Limited Waiver (the “Amendment”) | Quarterly Periods Ending December 31, 2016 | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio | 425.00% | ||||
Third Amendment to Credit Agreement and Limited Waiver (the “Amendment”) | All Periods Thereafter | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio | 400.00% | ||||
Third Amendment to Credit Agreement and Limited Waiver (the “Amendment”) | ABR | |||||
Debt Instrument [Line Items] | |||||
Increase margin on loans | 0.75% | ||||
Third Amendment to Credit Agreement and Limited Waiver (the “Amendment”) | Eurodollar | |||||
Debt Instrument [Line Items] | |||||
Increase margin on loans | 0.75% | ||||
Citibank N A | Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument expanded borrowing base | $ 120,000,000 | 180,000,000 | |||
Debt instrument maturity date | Oct. 16, 2018 | ||||
Senior Secured Credit Facility | $ 94,500,000 | $ 87,000,000 | |||
Citibank N A | Senior Secured Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.25% | ||||
Wells Fargo Led Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 400,000,000 | ||||
LRAI | Senior Secured Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Lien percentage of assets for senior secured credit facility | 80.00% | ||||
LRAI | Senior Secured Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.00% | ||||
Margin of loans, minimum | 1.75% | ||||
Margin of loans, maximum | 2.75% | ||||
LRAI | Senior Secured Credit Facility | Federal Funds Effective Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.50% | ||||
LRAI | Senior Secured Credit Facility | ABR | |||||
Debt Instrument [Line Items] | |||||
Margin of loans, minimum | 0.75% | ||||
Margin of loans, maximum | 1.75% | ||||
LRAI | Third Amendment to Credit Agreement and Limited Waiver (the “Amendment”) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Percentage of value of oil and gas properties that must be mortgaged as collateral | 90.00% | 80.00% | |||
LRAI | Citibank N A | Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 500,000,000 |
Long-Term Debt - 8.750% Senior
Long-Term Debt - 8.750% Senior Notes - Additional Information (Details) - 8.750% Senior Notes Due April 15, 2019 - USD ($) | Apr. 15, 2016 | Apr. 04, 2014 | Sep. 30, 2016 |
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 8.75% | ||
Debt instrument maturity date | Apr. 15, 2019 | ||
LRAI | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 220,000,000 | ||
Debt instrument interest rate | 8.75% | ||
Debt instrument maturity date | Apr. 15, 2019 | ||
Net proceeds from offering | $ 212,000,000 | ||
Prepayment fee | $ 1,100,000 | ||
Prepayment fee percentage on principal balance | 2.00% | ||
Redemption price, percentage | 101.00% |
Long-Term Debt - Schedule of Re
Long-Term Debt - Schedule of Redemption Prices Expressed as Percentages of Principal Amount (Details) - LRAI - 8.750% Senior Notes Due April 15, 2019 | Apr. 15, 2016 |
Debt Instrument Redemption [Line Items] | |
Redemption price, percentage | 101.00% |
Unsecured Debt | 2016 | |
Debt Instrument Redemption [Line Items] | |
Redemption price, percentage | 106.563% |
Unsecured Debt | 2017 | |
Debt Instrument Redemption [Line Items] | |
Redemption price, percentage | 104.375% |
Unsecured Debt | 2018 and Thereafter | |
Debt Instrument Redemption [Line Items] | |
Redemption price, percentage | 100.00% |
Long-Term Debt - Debt Issuance
Long-Term Debt - Debt Issuance Costs - Additional Information (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | $ 1,300,000 | $ 1,100,000 |
Long-Term Debt - Securities Pur
Long-Term Debt - Securities Purchase Agreement and Second Lien Notes - Additional Information (Details) - USD ($) | Aug. 02, 2016 | Sep. 30, 2016 |
Class A Voting Common Stock | ||
Debt Instrument [Line Items] | ||
Warrants to purchase common stock | 760,000 | |
Second Lien Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 38,000,000 | |
8.750% Senior Notes Due April 15, 2019 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 8.75% | |
Debt instrument repurchase amount | $ 68,200,000 | |
Debt instrument maturity date | Apr. 15, 2019 | |
Cash paid for repurchase of debt instrument | $ 36,200,000 | |
Gain on repurchase of debt instrument | $ 29,400,000 | |
Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 12.00% | |
Sale of stock, description of transaction | (i) up to $49,900,000 aggregate principal amount of LRAI’s 12% senior secured second lien notes due 2021 (the “Second Lien Notes”) and (ii) five-year warrants to purchase up to an aggregate 998,000 shares of the Company’s Class A voting common stock at a price equal to $5.00 per share (the “Warrants”). | |
Common stock price per share | $ 5 | |
Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 49,900,000 | |
Number of common shares issued | 998,000 |
Long-Term Debt - Repurchase Fac
Long-Term Debt - Repurchase Facilitation Agreement - Additional Information (Details) - USD ($) | Sep. 29, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 277,688,000 | $ 301,926,000 | |
8.750% Senior Notes Due April 15, 2019 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 8.75% | ||
Debt instrument maturity date | Apr. 15, 2019 | ||
Gap Financing If Paid before December 31, 2016 | Seaport Global Securities LLC | |||
Debt Instrument [Line Items] | |||
Gap financing repayment percentage | 105.00% | ||
Gap Financing If Paid on or after January 1, 2017 | Seaport Global Securities LLC | |||
Debt Instrument [Line Items] | |||
Gap financing repayment percentage | 111.10% | ||
Gap Financing | Seaport Global Securities LLC | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,063,320 | ||
Gap Financing | Seaport Global Securities LLC | Class A Voting Common Stock | |||
Debt Instrument [Line Items] | |||
Percentage of closing price of common stock to be taken as denominator on gap financing repayment | 90.00% | ||
Maximum number of shares to be issued on gap financing repayment | 460,000 |
Stock Options - Additional Info
Stock Options - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life of stock options issued | 3 years 6 months | |
Stock options vesting periods | 3 years | |
Stock options grant expirations periods | 4 years | |
Stock options exercised | 0 | |
Compensation expenses for stock options granted using fair-value method | $ 121,986 | $ 312,638 |
Predecessor | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average volatility rate of common share price | 58.60% | |
Cash dividend on common shares | $ 0 |
Stock Options - Schedule of Out
Stock Options - Schedule of Outstanding Stock Options (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercised, Shares | 0 | |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 3 years 6 months | |
Lonestar Resources Limited 2012 Employee Share Option Plan and Lonestar Resources US Inc 2016 Employee Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding at beginning of period, Shares | 849,936 | |
Granted, Shares | 35,000 | |
Canceled/Expired, Shares | (64,667) | |
Outstanding at end of period, Shares | 820,269 | 849,936 |
Options vested and exercisable, Shares | 778,019 | 807,686 |
Outstanding at beginning of period, Weighted Average Exercise Price Per Share | $ 15.50 | |
Granted, Weighted Average Exercise Price Per Share | 15 | |
Canceled/Expired , Weighted Average Exercise Price Per Share | 18 | |
Outstanding at end of period, Weighted Average Exercise Price Per Share | 15 | $ 15.50 |
Options vested and exercisable, Weighted Average Exercise Price Per Share | $ 15 | $ 15.50 |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 6 months | 1 year |
Options vested and exercisable, Weighted Average Remaining Contractual Term (in years) | 6 months | 1 year |
Lonestar Resources Limited 2012 Employee Share Option Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, Shares | 35,000 | |
Outstanding non-vested options at beginning of period, Shares | 42,250 | |
Vested, Shares | (35,000) | |
Outstanding non-vested options at end of period, Shares | 42,250 | 42,250 |
Outstanding non-vested options at beginning of period, Weighted Average Fair Value per Share | $ 9 | |
Granted, Weighted Average Fair Value per Share | 1.90 | |
Vested, Weighted Average Fair Value per Share | 1.90 | |
Outstanding non-vested options at ending of period, Weighted Average Fair Value per Share | 9 | $ 9 |
Outstanding non-vested options beginning of period, Weighted Average Exercise Price per share | 15.50 | |
Granted, Weighted Average Exercise Price per share | 15 | |
Vested, Weighted Average Exercise Price per share | 15 | |
Outstanding non-vested options end of period, Weighted Average Exercise Price per share | $ 15.50 | $ 15.50 |
Outstanding non-vested options, Weighted Average Remaining Contractual Term (in years) | 3 months | 1 year |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015 | Sep. 30, 2016USD ($) | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Reverse stock split | 1 for 2 reverse stock split upon Reorganization had occurred at the beginning of the three and nine month periods ended September 30, 2016 and 2015: | |||
Reverse stock split, conversion ratio | 2 | 2 | 2 | 2 |
Dilutive effect of earnings per share | $ 0 | $ 0 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Unaudited Earnings Per Share (After Reorganization) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income (loss) per common share: | ||||
Basic | $ (1.44) | $ 0.88 | $ (4.64) | $ (0.33) |
Diluted | $ (1.44) | $ 0.88 | $ (4.64) | $ (0.33) |
Weighted average common shares outstanding: | ||||
Basic | 7,842,586 | 7,522,025 | 7,629,896 | 7,522,025 |
Diluted | 7,842,586 | 7,522,025 | 7,629,896 | 7,522,025 |
Related Party Activities - Addi
Related Party Activities - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Apr. 30, 2014 | |
Frank D. Bracken, III and Thomas H. Olle | |||||
Related Party Transaction [Line Items] | |||||
Total loan amount to related parties | $ 539,000 | ||||
Butterfly Flaps, Ltd | |||||
Related Party Transaction [Line Items] | |||||
Cost of consultancy services | $ 25,000 | ||||
New Tech Global Ventures, LLC | |||||
Related Party Transaction [Line Items] | |||||
Cost of consultancy services | 78,000 | $ 149,000 | $ 465,000 | $ 763,000 | |
BlueSkye Pty Ltd | |||||
Related Party Transaction [Line Items] | |||||
Cost of consultancy services | $ 24,000 | $ 36,000 | $ 95,000 | $ 107,000 |
Equity Backstop Commitment - Ad
Equity Backstop Commitment - Additional Information (Details) | Dec. 31, 2016USD ($) | Aug. 02, 2016USD ($)Director |
Equity Purchase Agreement [Line Items] | ||
No of director | Director | 1 | |
Leucadia | ||
Equity Purchase Agreement [Line Items] | ||
Equity offering cost | $ 1,000,000 | |
Class A Voting Common Stock [Member] | Maximum | ||
Equity Purchase Agreement [Line Items] | ||
Percentage of shares purchased in the offering | 50.00% | |
Class A Voting Common Stock [Member] | Scenario Forecast | Leucadia | Maximum | ||
Equity Purchase Agreement [Line Items] | ||
Commitment amount | $ 20,000,000 | |
Equity offering threshold amount of long-term debt | 295,000,000 | |
Class A Voting Common Stock [Member] | Scenario Forecast | Leucadia | Minimum | ||
Equity Purchase Agreement [Line Items] | ||
Minimum aggregate offering price of equity securities excluding commitment amount | $ 40,000,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Director | 9 Months Ended | |
Sep. 30, 2016 | Oct. 26, 2016 | |
Subsequent Event [Line Items] | ||
Registration rights agreement description | The Company agreed to file a registration statement (the “Registration Statement”) providing for the resale of EF Realisation Stock no later than the earlier of (the “Filing Deadline”): (i) October 26, 2017, and (ii) 30 days after the date the Company first becomes eligible to file a registration statement on Form S-3. The Company agreed to cause the Registration Statement to become effective no later than 120 days after the Filing Deadline. | |
Subsequent Event | EF Realisation Company Limited | Maximum | Class A Voting Common Stock [Member] | ||
Subsequent Event [Line Items] | ||
Number of directors to be nominated | 2 | |
Subsequent Event | EF Realisation Company Limited | Minimum | Class A Voting Common Stock [Member] | ||
Subsequent Event [Line Items] | ||
Number of directors to be nominated | 1 | |
Subsequent Event | EF Realisation Company Limited | Board Representation Agreement | Class A Voting Common Stock [Member] | ||
Subsequent Event [Line Items] | ||
Minimum ownership percentage on common stock issued and outstanding required for nominating two directors | 15.00% | |
Minimum ownership percentage on common stock issued and outstanding required for nominating one director | 10.00% |