Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 02, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Trading Symbol | LONE | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 21,822,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 6,568 | $ 6,068 |
Accounts receivable: | ||
Oil, natural gas liquid and natural gas sales | 6,054 | 4,680 |
Joint interest owners and other, net | 1,648 | 867 |
Related parties | 847 | |
Derivative financial instruments | 7,823 | 1,730 |
Prepaid expenses and other | 5,445 | 2,631 |
Total current assets | 27,538 | 16,823 |
Oil and gas properties, net, using the successful efforts method of accounting | 545,489 | 439,228 |
Other property and equipment, net | 2,608 | 1,421 |
Derivative financial instruments | 2,681 | |
Other noncurrent assets | 3,963 | 1,561 |
Restricted certificates of deposit | 76 | 76 |
Total assets | 582,355 | 459,109 |
Current liabilities | ||
Accounts payable | 10,346 | 14,894 |
Accounts payable – related parties | 176 | 1,135 |
Oil, natural gas liquid and natural gas sales payable | 6,153 | 3,568 |
Accrued liabilities | 23,083 | 9,947 |
Accrued liabilities – related parties | 472 | 224 |
Derivative financial instruments | 120 | 2,985 |
Total current liabilities | 40,350 | 32,753 |
Long-term debt | 267,203 | 204,122 |
Long-term debt - related parties | 3,400 | |
Deferred tax liability | 27,035 | 38,020 |
Other non-current liabilities | 6,201 | 6,052 |
Equity warrant liability | 577 | 1,565 |
Equity warrant liability - related parties | 1,098 | 2,994 |
Asset retirement obligations | 5,019 | 2,683 |
Derivative financial instruments | 1,284 | 1,125 |
Total liabilities | 348,767 | 292,714 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Additional paid-in capital | 102,107 | 87,260 |
Accumulated deficit | (83,909) | (63,517) |
Total stockholders’ equity | 160,853 | 166,395 |
Total liabilities and stockholders’ equity | 582,355 | 459,109 |
Series A-2 Convertible Participating Preferred Stock | ||
Mezzanine equity | ||
Series A-2 convertible participating preferred stock, $0.001 par value, 74,600 issued and outstanding at June 30, 2017 and 0 issued and outstanding at December 31, 2016 | 72,735 | |
Class A Voting Common Stock | ||
Stockholders’ equity | ||
Common stock | 142,652 | $ 142,652 |
Series A-1 and Series B Convertible Participating Preferred Stock | ||
Stockholders’ equity | ||
Series A-1 convertible participating preferred stock, $0.001 par value and Series B convertible participating preferred stock, $0.001 par value, 5,400 shares and 2,684,632 shares issued and outstanding at June 30, 2017, respectively, 0 and 0 issued and outstanding at December 31, 2016, respectively | 3 | |
Total stockholders’ equity | $ 3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Jun. 02, 2017 | Dec. 31, 2016 |
Preferred stock, par value | $ 0.001 | ||
Series A-2 Convertible Participating Preferred Stock | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 74,600 | 0 | |
Preferred stock, shares outstanding | 74,600 | 0 | |
Class A Voting Common Stock | |||
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares issued | 21,822,015 | 21,822,015 | |
Common stock, shares outstanding | 21,822,015 | 21,822,015 | |
Class B Non-Voting Common Stock | |||
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, shares authorized | 5,000 | 5,000 | |
Common stock, shares issued | 2,500 | 2,500 | |
Common stock, shares outstanding | 2,500 | 2,500 | |
Series A-1 Convertible Participating Preferred Stock | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 5,400 | 0 | |
Preferred stock, shares outstanding | 5,400 | 0 | |
Series B Convertible Participating Preferred Stock | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares issued | 2,684,632 | 0 | |
Preferred stock, shares outstanding | 2,684,632 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations & Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | ||||
Oil sales | $ 15,090 | $ 15,168 | $ 29,580 | $ 24,119 |
Natural gas sales | 1,726 | 1,636 | 3,182 | 3,257 |
Natural gas liquid sales | 1,319 | 999 | 2,989 | 1,623 |
Total revenues | 18,135 | 17,803 | 35,751 | 28,999 |
Costs and expenses | ||||
Lease operating and gas gathering | 3,521 | 4,398 | 6,477 | 8,758 |
Production, ad valorem, and severance taxes | 1,077 | 1,223 | 2,114 | 2,139 |
Rig standby expense | 1,584 | 1,897 | ||
Depletion, depreciation, and amortization | 12,513 | 12,498 | 24,635 | 27,636 |
Accretion of asset retirement obligations | 38 | 51 | 58 | 107 |
Loss (gain) on sale of oil and gas properties | 205 | (1,531) | 348 | (1,531) |
Impairment of oil and gas properties | 27,081 | 1,938 | 27,081 | 1,938 |
Stock-based compensation | 461 | 95 | 639 | 191 |
General and administrative | 3,139 | 2,858 | 5,642 | 5,631 |
Acquisition costs | 2,726 | 2,726 | ||
Other (income) expense | (46) | 819 | (57) | 1,047 |
Total costs and expenses | 50,715 | 23,933 | 69,663 | 47,813 |
Loss from operations | (32,580) | (6,130) | (33,912) | (18,814) |
Other income (expense) | ||||
Interest expense | (5,971) | (5,629) | (10,417) | (11,210) |
Amortization of finance costs | (2,848) | (545) | (3,434) | (1,089) |
Unrealized gain on warrants | 614 | 2,884 | ||
Gain (loss) on derivative financial instruments | 5,416 | (6,785) | 14,162 | (5,069) |
Total other income (expense), net | (2,789) | (12,959) | 3,195 | (17,368) |
Loss before income taxes | (35,369) | (19,089) | (30,717) | (36,182) |
Income tax benefit | 12,208 | 6,245 | 10,621 | 12,040 |
Net loss | (23,161) | (12,844) | (20,096) | (24,142) |
Preferred stock dividends | (296) | (296) | ||
Net loss attributable to common stockholders | $ (23,457) | $ (12,844) | $ (20,392) | $ (24,142) |
Earnings per share: | ||||
Basic | $ (1.07) | $ (1.71) | $ (0.93) | $ (3.21) |
Diluted | $ (1.07) | $ (1.71) | $ (0.93) | $ (3.21) |
Weighted Average Shares Outstanding - basic | 21,822,015 | 7,522,025 | 21,822,015 | 7,522,025 |
Weighted Average Shares Outstanding - diluted | 21,822,015 | 7,522,025 | 21,822,015 | 7,522,025 |
Comprehensive loss: | ||||
Net loss | $ (23,161) | $ (12,844) | $ (20,096) | $ (24,142) |
Foreign currency translation adjustments | (17) | (16) | ||
Comprehensive loss | $ (23,161) | $ (12,861) | $ (20,096) | $ (24,158) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Class A Voting Common Stock | Series A-1 and Series B Preferred 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 | ||||||
Sale of common stock, net of offering costs | 71,817 | $ 14 | 71,803 | ||||
Sale of common stock, net of offering costs (in shares) | 13,800,000 | ||||||
Shares issued for asset acquisition | 5,499 | 5,499 | |||||
Shares issued for asset acquisition (in shares) | 500,227 | ||||||
Stock-based compensation | 448 | 448 | |||||
Foreign currency translation | (760) | $ 760 | |||||
Net loss | (94,335) | (94,335) | |||||
Ending balance at Dec. 31, 2016 | 166,395 | $ 142,652 | 87,260 | (63,517) | |||
Ending balance (in shares) at Dec. 31, 2016 | 21,822,015 | 21,822,015 | |||||
Shares issued for asset acquisition | 14,360 | $ 3 | 14,357 | ||||
Shares issued for asset acquisition (in shares) | 2,690,032 | ||||||
Dividends on Series A-1 and Series A-2 Preferred stock | (296) | (296) | |||||
Stock-based compensation | 490 | 490 | |||||
Net loss | (20,096) | (20,096) | |||||
Ending balance at Jun. 30, 2017 | $ 160,853 | $ 3 | $ 142,652 | $ 102,107 | $ (83,909) | ||
Ending balance (in shares) at Jun. 30, 2017 | 21,822,015 | 21,822,015 | |||||
Ending balance (in shares) at Jun. 30, 2017 | 2,690,032 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities | ||
Net loss | $ (20,096) | $ (24,142) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Gain on disposal of oil and gas properties | (919) | |
Accretion of asset retirement obligations | 58 | 107 |
Depletion, depreciation, and amortization | 24,635 | 27,636 |
Stock-based compensation | 639 | 191 |
Deferred taxes | (10,985) | (12,129) |
(Gain) losses on derivative financial instruments | (14,162) | 5,069 |
Settlements of derivative financial instruments | 2,682 | 18,300 |
Impairment of oil and gas properties | 27,081 | 1,938 |
Non-cash interest expense | 3,434 | 550 |
Unrealized gain on warrants | (2,884) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,308) | (818) |
Prepaid expenses and other assets | (3,010) | 229 |
Accounts payable and accrued expenses | 11,028 | (8,479) |
Net cash provided by operating activities | 17,112 | 7,533 |
Investing activities | ||
Acquisition of oil and gas properties | (108,179) | (2,717) |
Development of oil and gas properties | (37,750) | (19,003) |
Proceeds from sales of oil and gas properties | 2,720 | |
Purchases of other property and equipment | (1,522) | (177) |
Net cash used in investing activities | (147,451) | (19,177) |
Financing activities | ||
Proceeds from borrowings and related party borrowings | 76,079 | 23,500 |
Payments on borrowings and related party borrowings | (19,500) | (11,000) |
Proceeds from sale of preferred stock | 77,800 | |
Cost to issue equity | (1,000) | (15) |
Payments of debt issuance costs | (2,537) | |
Changes in other notes payable | (3) | |
Net cash provided by financing activities | 130,839 | 12,485 |
Effect of exchange rate changes on cash and cash equivalents | (16) | |
Increase in cash and cash equivalents | 500 | 825 |
Cash and cash equivalents, beginning of the period | 6,068 | 4,322 |
Cash and cash equivalents, end of the period | 6,568 | 5,147 |
Net cash used by operating activities: | ||
Cash paid for taxes | 2,240 | |
Cash paid for interest expense | 10,674 | $ 11,082 |
Non-cash investing and financing activities: | ||
Preferred stock issued for asset acquisition | 10,795 | |
Cost to issue equity included in accounts payable | $ 1,500 |
Nature of Business and Presenta
Nature of Business and Presentation | 6 Months Ended |
Jun. 30, 2017 | |
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, through its wholly owned subsidiary, Lonestar Resources, Inc. Its executive offices are located in Fort Worth, Texas. LRAI was a wholly owned subsidiary of the Predecessor, prior to the reorganization described above. The majority of the activities of the Predecessor were 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 six months ended June 30, 2017 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. All significant intercompany balances and transactions have been eliminated in consolidation. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | 2. Recently Issued Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business" in order to clarify the definition of a business as it relates to whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. 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 under certain circumstances. The Company adopted ASU 2017-01 effective January 1, 2017. 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. The Company adopted ASU 2016-09 effective January 1, 2017. The Company has elected to record the impact of forfeitures on compensation cost as they occur. The Company is also permitted to withhold income taxes upon settlement of equity-classified awards at up to the maximum statutory rates. 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 beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the new guidance to determine the impact it will have on our consolidated results of operations, financial position or cash flows and anticipates adopting the guidance on the effective date of January 1, 2019. In May 2014, August 2015 and May 2016, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, ASU No. 2015-14, “Revenue from Contracts with Customers, Deferral of the Effective Date”, ASU No. 2016-12, “Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients”, and ASU No. 2016-20, “Revenue from Contracts with Customers, Technical Corrections and Improvements”, respectively, as a new Topic, Accounting Standards Codification Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company 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. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective for annual periods beginning after December 15, 2017 with early adoption permitted on January 1, 2017 and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. As we are in the process of evaluating the impact of the standard, we have not yet quantified the impact of adoption or determined the method of adoption. During 2017, we will perform the remainder of our implementation process, which will include quantification of impact, selection of adoption method and development of policies. The Company plans to adopt this guidance in the first quarter of 2018. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 3. Acquisitions and Divestitures On March 13, 2017 Eagleford Gas 8, LLC (“Buyer”), a wholly-owned subsidiary of the Company, entered into a purchase and sale agreement with Modern Exploration, Inc. (“Seller”) whereby the Buyer obtained an undivided 33.5% working interest / 26.8% net revenue interest of Seller’s interest in six producing wells and each well’s respective oil and gas leases located in southern Gonzales County, Texas. The total purchase price paid by Buyer was approximately $7,600,000. Closing occurred on April 3, 2017, with the effective date of the acquisition being April 1, 2017. Pro forma financial information is not presented for this acquisition as it is not considered material to the Company. On June 15, 2017, the Company closed an acquisition with Battlecat Oil & Gas, LLC (“Battlecat”) whereby the Company acquired oil and gas properties in the Eagle Ford Shale play in DeWitt, Gonzales and Karnes County, Texas (the “Battlecat Acquisition”). These assets are expected to significantly expand our asset base and drilling locations. The total purchase consideration of approximately $59.8 million consisted of $55.0 million in cash and 1,184,632 shares of Series B Convertible Preferred Stock, par value $0.001 per share (“Series B Preferred Stock”) at a value of approximately $4.8 million. Allocation of the purchase consideration was as follows: $56.3 million to proved reserves; $2.9 million to unproved reserves and $0.6 million to unevaluated acreage and other assets. Additionally, the Company recorded an asset retirement obligation of approximately $0.2 million, resulting in fair value of net assets acquired of approximately $59.6 million. The Company accounted for the acquisition as a business combination under ASC Topic 805. Acquisition related costs of approximately $1.5 million were charged to Acquisition Costs in the Consolidated Statements of Operations & Comprehensive Income (Loss). The effective date of the acquisition was April 1, 2017. On June 15, 2017, the Company closed an acquisition with SN Marquis LLC (a subsidiary of Sanchez Energy Corporation) (“Marquis”) whereby the Company acquired oil and gas properties in the Eagle Ford Shale play in Fayette, Gonzales and Lavaca County, Texas (the “Marquis Acquisition”). These assets are expected to significantly expand our asset base and production. The total purchase consideration of approximately $50.0 million consisted of $44.0 million in cash and 1,500,000 shares of Series B Preferred Stock at a value of approximately $6.0 million. Allocation of the purchase price was as follows: $48.0 million to proved reserves; $0.6 to unproved reserves and $1.4 million to land, building and other assets. Additionally, the Company recorded an asset retirement obligation of approximately $1.9 million, resulting in fair value of net assets acquired of approximately $48.1 million. The Company accounted for the acquisition as a business combination under ASC Topic 805. Acquisition related costs of approximately $1.2 million were charged to Acquisition Costs in the Consolidated Statements of Operations & Comprehensive Income (Loss). The effective date of the acquisition was January 1, 2017. Pro Forma Operating Results The following unaudited pro forma combined financial information for the three and six months ended June 30, 2017 and 2016 is based on the historical consolidated financial statements of the Company adjusted to reflect as if the Battlecat Acquisition and the Marquis Acquisition had closed and related financing had occurred on January 1, 2016. The unaudited pro forma combined financial information includes adjustments primarily for revenues and expenses for the acquired properties, depreciation, depletion, amortization and accretion, and interest expense. The unaudited pro forma combined financial statements give effect to the events set forth below: • The issuance of 5,400 shares of Series A-1 Preferred Stock and 74,600 shares of Series A-2 Preferred Stock (each as defined below) to Chambers Energy Capital III, LP (“Chambers”) for $80 million to finance a portion of the Battlecat Acquisition and the Marquis Acquisition, at an initial conversion price of $6.00 per share, subject to certain adjustments. • The borrowing of approximately $24 million on our Senior Secured Credit Facility to finance a portion of the Battlecat Acquisition and the Marquis Acquisition. • The issuance of 1,500,000 shares of the Company’s Series B Preferred Stock to SN UR Holdings, LLC (a subsidiary of Sanchez Energy Corporation). • The issuance of 1,184,632 shares of the Company’s Series B Preferred Stock to Battlecat Oil & Gas, LLC. Three months ended June 30, 2017 Lonestar Marquis Battlecat Pro Forma Adjustments Pro Forma Lonestar Revenues $ 18,135 $ 5,373 $ 779 $ — $ 24,287 Net income (loss) attributable to common stockholders (23,457 ) 3,472 240 5,552 (14,193 ) Net income (loss) per common share, basic and diluted (1.07 ) — — — (0.65 ) Three months ended June 30, 2016 Lonestar Marquis Battlecat Pro Forma Adjustments Pro Forma Lonestar Revenues $ 17,803 $ 8,149 $ 961 $ — $ 26,913 Net income (loss) attributable to common stockholders (12,844 ) 4,596 648 (5,194 ) (12,794 ) Net income (loss) per common share, basic and diluted (1.71 ) — — — (1.70 ) Six months ended June 30, 2017 Lonestar Marquis Battlecat Pro Forma Adjustments Pro Forma Lonestar Revenues $ 35,751 $ 11,983 $ 1,802 $ — $ 49,536 Net income (loss) attributable to common stockholders (20,392 ) 7,688 603 922 (11,179 ) Net income (loss) per common share, basic and diluted (0.93 ) — — — (0.51 ) Six months ended June 30, 2016 Lonestar Marquis Battlecat Pro Forma Adjustments Pro Forma Lonestar Revenues $ 28,999 $ 14,917 $ 1,829 $ — $ 45,745 Net income (loss) attributable to common stockholders (24,142 ) 7,902 1,101 (10,427 ) (25,566 ) Net income (loss) per common share, basic and diluted (3.21 ) — — — (3.40 ) Pro forma adjustments to net income (loss) attributable to common stockholders consists of depreciation, depletion, amortization and accretion calculations, additional interest expense, adjustments for income tax (expense) benefit, and dividends on preferred stock issued to complete the acquisitions. The effect on net income (loss) per common share, basic and diluted, is a result of adjustments to Lonestar revenue and net income (loss) for revenue and expenses for acquired properties as well as the pro forma adjustments to arrive at pro forma Lonestar net income (loss) attributable to common stockholders. |
Restricted Certificate of Depos
Restricted Certificate of Deposit | 6 Months Ended |
Jun. 30, 2017 | |
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, 2018, 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 | 6 Months Ended |
Jun. 30, 2017 | |
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 cash collateral from any of its counterparties nor does its counterparties require cash collateral from the Company. At June 30, 2017, 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 June 30, 2017, the following derivative transactions were outstanding: Instrument Total Volume Settlement Period Fixed Price Oil – WTI Fixed Price Swap 55,200 Bbl July – December 2017 $ 51.05 Oil – WTI Fixed Price Swap 36,800 Bbl July – December 2017 50.60 Oil – WTI Fixed Price Swap 184,000 Bbl July – December 2017 52.90 Oil – WTI Fixed Price Swap 92,000 Bbl July – December 2017 56.00 Oil – WTI Fixed Price Swap 365,000 Bbl January – December 2018 54.18 Oil – WTI Fixed Price Swap 182,500 Bbl January – December 2018 55.65 Oil – WTI Fixed Price Swap 182,500 Bbl January – December 2018 55.50 Oil – WTI Fixed Price Swap 292,000 Bbl January – December 2018 47.10 Oil – WTI Fixed Price Swap 560,700 Bbl January – December 2019 48.04 Oil – WTI Fixed Price Swap 203,600 Bbl January – June 2020 48.90 Natural Gas – Henry Hub NYMEX Fixed Price Swap 1,288,000 MMBtu July – December 2017 — Instrument Total Volume Settlement Period Puts Calls Oil – 3 Way Collar 174,200 Bbl July – December 2017 $ 40.00 / 60.00 $ 85.00 Oil – 2 Way Collar 182,500 Bbl January – December 2018 50.00 59.45 The above derivative contracts aggregate to 542,200 barrels or 2,947 barrels of oil per day for the remainder of 2017, 1,204,500 barrels or 3,300 barrels of oil per day for 2018, 560,700 barrels or 1,536 barrels of oil per day for 2019 and 203,600 barrels or 1,119 barrels of oil per day for 2020. The above natural gas derivative contract equates to 1,288,000 MMBtu or 7,000 MMBtu per day for the remainder of 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 June 30, 2017 and December 31, 2016, 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 | 6 Months Ended |
Jun. 30, 2017 | |
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. 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 June 30, 2017 and December 31, 2016, 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 June 30, 2017 (Unaudited) (In thousands) Assets: Commodity derivatives $ — $ 10,504 $ — $ 10,504 Liabilities: Commodity derivatives — (1,404 ) — (1,404 ) Equity warrant liability — — (577 ) (577 ) Equity warrant liability - related parties — — (1,098 ) (1,098 ) Stock appreciation rights — — (149 ) (149 ) Total $ — $ 9,100 $ (1,824 ) $ 7,276 December 31, 2016 (In thousands) Assets: Commodity derivatives $ — $ 1,730 $ — $ 1,730 Liabilities: Commodity derivatives — (4,110 ) — (4,110 ) Equity warrant liability — — (1,565 ) (1,565 ) Equity warrant liability - related parties — — (2,994 ) (2,994 ) Total $ — $ (2,380 ) $ (4,559 ) $ (6,939 ) Level 3 Gains and Losses The table below sets forth a summary of changes in the fair value of the Company’s Level 3 liabilities for the six months ended June 30, 2017, in thousands. Equity Warrant Liability Stock Appreciation Rights Total (Unaudited) Balance at December 31, 2016 $ (4,559 ) $ — $ (4,559 ) Purchases, sales, issuances and settlements (net) — (72 ) (72 ) Realized gains/(losses) — — — Unrealized gains/(losses) 2,884 (77 ) 2,807 Balance at June 30, 2017 $ (1,675 ) $ (149 ) $ (1,824 ) The derivative asset and liability fair values reported in the consolidated balance sheets are as of the balance sheet date and subsequently change as a result of changes in commodity prices, market conditions and other factors. The Company typically has numerous hedge positions that span several time periods and often result in both derivative assets and liabilities with the same counterparty, which positions are all offset to a single derivative asset or liability in the consolidated balance sheets, including the deferred premiums associated with its hedge positions. The Company nets the fair values of its derivative assets and liabilities associated with derivative instruments executed with the same counterparty pursuant to ISDA master agreements, which provide for net settlement over the term of the contract and in the event of default or termination of the contract. The book values of cash and cash equivalents, receivables for oil, NGL and natural gas sales, joint interest billings, notes and other receivables and accounts payable 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 $145 million as of June 30, 2017, 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. |
Oil and Gas Properties
Oil and Gas Properties | 6 Months Ended |
Jun. 30, 2017 | |
Extractive Industries [Abstract] | |
Oil and Gas Properties | 7. Oil and Gas Properties A summary of oil and gas properties is as follows: June 30, 2017 (Unaudited) December 31, 2016 (In thousands) Proved properties and equipment $ 654,074 $ 538,695 Unproved properties 114,848 72,584 Less accumulated depreciation, depletion, amortization, and impairment (223,433 ) (172,051 ) $ 545,489 $ 439,228 During the three months ended June 30, 2017, the Company recorded an impairment charge of approximately $27.1 million relating to its West Poplar property in Roosevelt County, Montana. Upon completion of the Company’s recent major acquisitions in the Eagle Ford Shale (the Marquis Acquisition and the Battlecat Acquisition), the Company expects to divert virtually all of its capital expenditures towards development of its 57,172 net acres in the Eagle Ford Shale. In accordance with FASB ASC 932-360-35, whenever events or circumstances indicate that the carrying amount of oil and gas properties may not be recoverable, they must be tested for recoverability. As a result of the West Poplar asset recoverability test, we have impaired the asset. If pricing declines, the Company may have to record impairment of its Eagle Ford oil and gas properties subsequent to June 30, 2017. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities The accrued liabilities consisted of the following: June 30, 2017 (Unaudited) December 31, 2016 (In thousands) Bonus payable $ 3,239 $ 2,155 Payroll payable 8 1 Accrued interest - 8.750% Senior Notes 2,961 2,924 Accrued interest - other 355 523 Accrued rent 237 298 Accrued well costs 11,121 3,366 Accrued severance, property and franchise taxes 936 431 Accrued professional fees 3,788 — Other 438 249 $ 23,083 $ 9,947 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt The long-term debt consisted of the following: June 30, 2017 (Unaudited) December 31, 2016 (In thousands) Senior Secured Credit Facility $ 117,079 $ 43,500 Second Lien Notes — 11,367 8.750% Senior Notes 151,848 151,848 Less unamortized discount on 8.750% Senior Notes (1,329 ) (1,708 ) Less deferred financing costs on 8.750% Senior Notes (662 ) (851 ) Less deferred financing costs on Second Lien Notes — (316 ) Other 267 282 $ 267,203 $ 204,122 Senior Secured Credit Facility On July 28, 2015, LRAI closed on a Credit Agreement (as amended, supplemented or modified from time to time, the “Credit Agreement”) for a $500,000,000 Senior Secured Credit Facility (the “Senior Secured Credit Facility”) which had a borrowing base of $180,000,000 as of December 31, 2015 and a maturity date of October 16, 2018 Effective as of May 19, 2016, the borrowing base was reduced from $180,000,000 to $120,000,000. Effective as of November 23, 2016, the borrowing base was reduced from $120,000,000 to $112,000,000. 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 (4.87% at June 30, 2017). 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 “Third 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 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 selling, 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. In connection with closing the Marquis Acquisition and the Battlecat Acquisition, on June 15, 2017, LRAI entered into the Sixth Amendment and Joinder to Credit Agreement (the “Sixth Amendment”) to its Credit Agreement, dated as of July 28, 2015, among LRAI, the subsidiary guarantors party thereto, the several lenders party thereto and Citibank, N.A., in its capacity as administrative agent and as issuing bank. Pursuant to the Amendment, the Credit Agreement was amended to (i) increase the borrowing base from $112 million to $160 million until redetermined or adjusted in accordance with the Credit Agreement, (ii) modify the maximum leverage ratio threshold to be 4.0 to 1.0 for all periods, starting with the fiscal quarter ending September 30, 2017, and providing that EBITDAX (as defined in the Credit Agreement) shall be calculated at the end of each fiscal quarter using the results of the twelve-month period ending with that fiscal quarter end; provided, that EBITDAX shall be calculated (x) at the end of the fiscal quarter ending September 30, 2017 using an amount equal to the EBITDAX for such fiscal quarter, multiplied by four, (y) at the end of the fiscal quarter ending December 31, 2017 using an amount equal to the EBITDAX for the two fiscal quarter period ended on such date, multiplied by two and (z) at the end of the fiscal quarter ending March 31, 2018 using an amount equal to the EBITDAX for the three fiscal quarter period ended on such date, multiplied by four-thirds, (iii) permit LRAI to declare and pay dividends to the Company equal to the amount of any cash dividends declared and payable in accordance with the terms of the Company’s Certificate of Designations of Convertible Participating Preferred Stock, Series A-1, and Certificate of Designations of Convertible Participating Preferred Stock, Series A-2, subject to certain specified terms and conditions and (iv) amend certain other provisions of the Credit Agreement as more specifically set forth in the Sixth Amendment. As of June 30, 2017 and December 31, 2016 (giving effect to the amended covenant ratio discussed above), LRAI was in compliance with all covenants including all financial ratios under the Senior Secured Credit Facility. As of June 30, 2017 and December 31, 2016, $117,079,081 and $43,500,000 was borrowed, respectively, under the Senior Secured Credit Facility. Borrowing base availability was $42,920,919 at June 30, 2017. 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. During 2016, LRAI repurchased approximately $68.2 million in aggregate principal amount of the 8.750% Senior Notes leaving a remaining balance of approximately $151.8 million. 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 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 June 30, 2017 and December 31, 2016, the Company had approximately $3,400,000 and $1,200,000, 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 balance of these notes and warrants is reflected in the Company’s long-term debt – related parties and equity warrant liability – related parties on the face of the balance sheet. 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. During 2016, LRAI issued $38.0 million in aggregate principal amount of Second Lien Notes and the Company issued the Warrants to purchase 760,000 shares of its Class A voting common stock. The Company recorded an equity warrant liability of approximately $5.1 million which was the fair value amount at the date of issuance. The Warrants were adjusted to fair value at June 30, 2017 which resulted in an unrealized gain on the Warrants of approximately $2.9 million for the six months ended June 30, 2017. 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 $28.5 million. In December 2016, LRAI repaid $21.0 million principal of the Second Lien Notes with proceeds from the offering of the Company’s Class A voting common stock that was completed on December 22, 2016 pursuant to a Registration Statement on Form S-1 (File No. 333-214265), which was declared effective on December 15, 2016 (the “2016 Common Stock Offering”). In June 2017, LRAI repaid the remaining $17.0 million principal of the Second Lien Notes including an early payment premium of approximately $1.1 million with borrowings from the Company’s Senior Secured Credit Facility. The Company also recorded an approximate $2.0 million charge due to early recognition of the warrant discount associated with the payoff of the Second Lien Notes. |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders’ Equity | 10. Stockholders’ Equity Preferred Stock The Company is authorized to issue up to 10,000,000 shares of preferred stock with a par value of $0.001. The Company’s preferred stock may be entitled to preference over the common stock with respect to the distribution of assets of the Company in the event of liquidation, dissolution or winding-up of the Company, whether voluntarily or involuntarily, or in the event of any other distribution of assets of the Company among its shareholders for the purpose of the winding-up of its affairs. The authorized but unissued shares of the preferred stock may be divided into and issued in designated series from time to time by one or more resolutions adopted by the Board of Directors of the Company (the “Board”). The Board in their sole discretion shall have the power to determine the relative powers, preferences and rights of each series of preferred stock. Series A & B Preferred Stock On June 2, 2017 the Company reported entering into a securities purchase agreement (the “Original SPA”) with Chambers, pursuant to which the Company agreed to sell to Chambers, in a private placement under the Securities Act of 1933, as amended (the “Securities Act”), shares of the Company’s newly-created Series A-1 Convertible Participating Preferred Stock, par value $0.001 per share (the “Series A-1 Preferred Stock”), and Series A-2 Convertible Participating Preferred Stock, par value $0.001 per share (the “Series A-2 Preferred Stock” and, together with the Series A-1 Preferred Stock, the “Series A Preferred Stock” and, collectively with the Series A-1 Preferred Stock and the Series B Preferred Stock, the “Preferred Stock”), for an aggregate purchase price of approximately $78 million. On June 15, 2017, the Company entered into an amended and restated securities purchase agreement (the “A&R SPA”) with Chambers. On the same day, the Company closed the transactions contemplated by the SPA (the “SPA Closing”) and issued to Chambers 5,400 shares of Series A-1 Preferred Stock and 74,600 shares of Series A-2 Preferred Stock. Pursuant to the terms of the SPA, the Company agreed to use commercially reasonable efforts to hold a stockholder meeting (the “Stockholder Meeting”) by no later than December 15, 2017 and to obtain at the meeting stockholder approval of the issuance of shares of the Company’s Class A voting common stock issuable upon conversion of all shares of Series A-1 Preferred Stock and Series A-2 Preferred Stock (upon their conversion to shares of Series A-1 Preferred Stock) issued or issuable pursuant to the A&R SPA (the “Stockholder Approval”). After the SPA Closing and for so long as the Approved Holders (as defined in the A&R SPA) beneficially own at least 10% of the total number of outstanding shares of Class A voting common stock and Class B non-voting common stock (collectively, “Common Stock”) of the Company, on an as-converted basis, or at least 15% of the number of Series A Preferred Stock issued to Chambers at the SPA Closing, the Company cannot undertake certain actions without the prior consent of holders of a majority of all shares of Common Stock, on an as-converted basis, held by the Approved Holders. Prior to June 15, 2020, Chambers and its affiliates are prohibited from directly or indirectly engaging in any short sales involving the Common Stock or securities convertible into, or exercisable or exchanged for, Common Stock. Without the prior written consent of the Board, the Approved Holders are subject to customary standstill restrictions until the earlier of (i) the two-year anniversary of the date the Approved Holders are no longer entitled to designate any director to the Board and (ii) the date the Company fails to fully declare and pay all accrued dividends on either series of the Series A Preferred Stock after there are no PIK Quarters (as defined below) remaining. In connection with the SPA Closing and the issuance of shares of Series A Preferred Stock, the Company entered into a registration rights agreement with Chambers (the “Chambers RRA”). Under the Chambers RRA, the Company has agreed to provide to Chambers certain customary demand and piggyback registration rights relating to Chambers’ ownership of Company stock. The Chambers RRA contains customary terms and conditions, including certain customary indemnification obligations. Each of the Series A-1 Preferred Stock, Series A-2 Preferred Stock and Series B Preferred Stock is a new class of equity security. Each series of Series A Preferred Stock ranks senior to Class A voting common stock with respect to dividend rights and rights upon the liquidation, winding-up or dissolution of the Company, and each series initially has a stated value of $1,000 per share (the “Stated Value”). Series B Preferred Stock ranks pari passu with Class A voting common stock with respect to dividend rights, but senior to Class A voting common stock with respect to rights upon the liquidation, winding-up or dissolution of the Company, with a par value of $0.001 per share. If the stockholder approval is obtained, each outstanding share of Series A-2 Preferred Stock will automatically convert into one share of Series A-1 Preferred Stock, subject to customary adjustments. No later than two business days following the holding of the Stockholder Meeting, each share of Series B Preferred Stock will automatically convert into one share of Class A voting common stock, whether or not the Stockholder Approval has been obtained. Holders of Series A-1 Preferred Stock will be entitled to vote with holders of Class A voting common stock on an as-converted basis upon the consummation of the Stockholder Meeting, whether or not the Stockholder Approval is obtained. Holders of Series A-2 Preferred Stock are entitled to vote with the holders of Series A-1 Preferred Stock on all matters submitted for a vote of holders of Preferred Stock as a separate class, but in no event are entitled to vote with the holders of Class A voting common stock. Holders of Series B Preferred Stock have no voting rights, except as described below. Holders of any series of Preferred Stock are entitled to one vote per share on any matter on which holders of such applicable series are entitled to vote separately as a class. In addition, for so long as shares of a particular series of Preferred Stock are outstanding, the affirmative vote or consent of holders of at least a majority of the outstanding shares of such series, voting together as a separate class, is necessary for effecting any amendment or modification to the certificate of incorporation or the applicable Certificate of Designations that would materially and adversely affect the relative rights, preferences, privileges or voting power of such series. Shares of Series A-1 Preferred Stock will be immediately convertible into shares of Class A voting common stock at the option of the holders of such Series A-1 Preferred Stock upon the consummation of the Stockholder Meeting, at a per share rate (the “Conversion Rate”) equal to the Stated Value of such share divided by six, subject to certain adjustments (the “Conversion Price”). Upon the consummation of the Stockholder Meeting, the Company will have the option to convert Series A-1 Preferred Stock to Class A voting common stock if the volume weighted average price of Class A voting common stock exceeds the following percentages of the Conversion Price for twenty out of thirty consecutive trading days: (i) 200%, if such mandatory conversion occurs prior to June 15, 2019, (ii) 175%, if such mandatory conversion occurs after June 15, 2019 but before June 15, 2020, and (iii) 150%, if such mandatory conversion occurs after June 15, 2020. If on June 15, 2024, the Stockholder Meeting has been consummated (no matter whether or not the Stockholder Approval has been obtained) and the trailing 20-day volume weighted average price of Class A voting common stock (the “Prevailing Price”) is equal to or greater than the Conversion Price then in effect, then each share of the Series A-1 Preferred Stock then outstanding will automatically convert to Class A voting common stock at the then applicable Conversion Rate. Notwithstanding anything to the contrary in the foregoing, in no event will in excess of 1,678,089 shares of Class A voting common stock be issued in connection with the conversion of Series A-1 Preferred Stock in advance of the Stockholder Approval, and such conversion will only occur to the extent it will not result in a violation of any applicable rules of The NASDAQ Stock Market LLC (provided, that the Company is to take commercially reasonable efforts to effect the issuance in compliance with such rules). Holders of Series A Preferred Stock will be entitled to cumulative dividends payable quarterly initially at a rate of 9% per annum (the “Dividend Rate”) in cash and, for any 12 quarters (“PIK Quarters”), at the Company’s option, (i) in the form of additional shares of the respective series of Series A Preferred Stock at a per share price equal to $975 or (ii) by increasing Stated Value, in lieu of cash. After the 12 PIK Quarters, if the Company fails to fully declare and pay dividends in cash, then the Dividend Rate for Series A Preferred Stock will automatically increase by 5.0% per annum for the next succeeding dividend period and then an additional 1.0% for each successive dividend period, up to a maximum Dividend Rate of 20.0% per annum, until the Company pays dividends at such increased rate fully in cash for two consecutive quarters. Separately, if the Stockholder Approval has not been obtained by December 15, 2017, the Dividend Rate for Series A-2 Preferred Stock will automatically increase by 5% per annum for the dividend period ended on March 31, 2018 and by an additional 0.5% each quarter thereafter until the Stockholder Approval is obtained, up to a maximum Dividend Rate of 20.0% per annum. In addition to dividends rights described above, holders of all series of Preferred Stock will be entitled to receive dividends or distributions declared or paid on Class A voting common stock on an as-converted basis. If on June 15, 2024, the Prevailing Price is less than the Conversion Price then in effect, the Dividend Rate for Series A-1 Preferred Stock will automatically increase to 20.0% per annum, payable only in cash, unless automatically converted as described above. However, the Company, at its option, may instead elect to exchange each share of Series A-1 Preferred Stock for senior unsecured notes of the Company with a two-year maturity, a 9.0% per annum coupon payable semi-annually in cash, and governed by terms substantially similar to the Company’s most recent high yield indenture at that time. After June 15, 2020, the Company may redeem shares of Series A Preferred Stock in cash at a per share amount equal to (i) 110% of the Stated Value, if the redemption occurs prior to June 15, 2021, (ii) 105% of the Stated Value, if the redemption occurs prior to June 15, 2022, and (iii) 100% of the Stated Value, if the redemption occurs after June 15, 2022, in each case, plus any unpaid dividends. If the Stockholder Approval is not obtained on or prior to June 15, 2024, the Company must redeem all outstanding shares of Series A-2 Preferred Stock at the Stated Value then in effect on June 15, 2014. If at any time after June 15, 2024 the Company fails to fully declare and pay a quarterly dividend in cash on Series A-1 Preferred Stock, then the Company must redeem in cash all outstanding Series A-1 Preferred Stock at the Stated Value then in effect. As of June 30, 2017, 5,400 shares of Series A-1 Preferred Stock and 2,684,632 shares of Series B Preferred Stock were issued and outstanding with zero issued and outstanding at December 31, 2016. As of June 30, 2017, 74,600 shares of Series A-2 Preferred Stock were issued and outstanding with zero issued and outstanding at December 31, 2016. The Series A-2 Preferred Stock is classified as Mezzanine Equity in the Consolidated Balance Sheets due to the mandatory redemption feature triggered by the failure to obtain requisite Stockholder Approval. If requisite Stockholder Approval is obtained, the redemption feature would no longer be applicable, and the Series A-2 Preferred Stock will be reclassified to permanent equity at that time. Common Stock The Company is authorized to issue up to 100,000,000 shares of $0.001 par value Class A voting common stock of which 21,822,015 were issued and outstanding as of June 30, 2017 and December 31, 2016. The Company is authorized to issue up to 5,000 shares of $0.001 par value Class B non-voting common stock of which 2,500 shares were issued and outstanding as of June 30, 2017 and December 31, 2016. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation Stock Option Activity For the six months ended June 30, 2017, no stock options were issued or 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, 2016 191,750 $ 15.00 0.5 Options vested and exercisable at December 31, 2016 191,750 $ 15.00 0.5 Granted — — — Exercised — — — Canceled/Expired (16,125 ) — — Forfeited (75,000 ) 20.00 — Outstanding at June 30, 2017 100,625 $ 15.00 0.5 Options vested and exercisable at June 30, 2017 100,625 $ 15.00 0.5 Restricted Stock Units In February 2017, the Company granted awards of restricted stock units (“RSUs”) covering 612,000 shares to certain of its employees. The awards vest over a three-year period as follows: 40% on the first anniversary of issuance and 30% on each of the second and third anniversaries of issuance, such that the RSU’s will be fully vested on the third anniversary of issuance. The Company determines the fair value of granted RSU’s based on the market price of the Class A voting common stock of the Company on the date of grant. RSUs will be paid in Class A voting common stock or cash at the Company’s option after the vesting of the applicable RSU. Compensation expense for granted RSUs is recognized over the vesting period. Shares Weighted Remaining Contractual Term (in years) Outstanding at December 31, 2016 — — RSUs vested at December 31, 2016 — — Granted 612,000 3.0 Canceled/Expired — — Forfeited (10,000 ) 2.8 Outstanding at June 30, 2017 602,000 2.8 RSUs vested at June 30, 2017 — — Shares Weighted Average Fair Value per Share Weighted Average Remaining Contractual Term (in years) Outstanding non-vested RSUs at December 31, 2016 — $ — — Granted 612,000 6.00 3.0 Vested — — — Forfeited (10,000 ) 4.10 2.8 Outstanding non-vested RSUs at June 30, 2017 602,000 $ 4.10 2.8 Stock Appreciation Rights In February 2017, the Company granted awards of stock appreciation rights (“SARs”) covering 700,000 shares to certain of its employees and its non-employee directors. The awards vest over a three-year period as follows: 40% on the first anniversary of issuance and 30% on each of the second and third anniversaries of issuance, such that the SAR’s will be fully vested on the third anniversary of issuance. The SARs will expire five-years after the date of issuance. The exercise price of the SAR is the fair market value of the Company’s Class A voting common stock on the date of the grant. The SAR entitles the holder to receive from the Company upon exercise of the exercisable portion of the SAR an amount determined by multiplying the excess of the fair market value of one share on the date of exercise over the exercise price per share by the number of shares with respect to which the SAR is exercised. SARs will be paid in cash or common stock at holder’s election once the SAR is vested, with the provision that the Company possesses sufficient liquidity to allow for cash settlement of the SAR. The SARs are being treated as a liability in the Consolidated Balance Sheets. Shares Weighted Average Exercise Price Per Share Weighted Remaining Contractual Term (in years) Outstanding at December 31, 2016 — — — SARs vested and exercisable at December 31, 2016 — — — Granted 700,000 $ 7.20 5.0 Exercised — — — Canceled/Expired — — — Forfeited (10,000 ) 7.20 4.8 Outstanding at June 30, 2017 690,000 $ 7.20 4.8 SARs vested and exercisable at June 30, 2017 — $ — — Shares Weighted Average Fair Value per Share Weighted Average Exercise Price per share Weighted Average Remaining Contractual Term (in years) Outstanding non-vested SARs at December 31, 2016 — $ — $ — — Granted 700,000 5.00 7.20 5.0 Vested — — — — Forfeited (10,000 ) 4.10 7.20 4.8 Outstanding non-vested SARs at June 30, 2017 690,000 $ 4.10 $ 7.20 4.8 Stock-Based Compensation Expense For the three and six month periods ended June 30, 2017, the Company recorded stock-based compensation expenses of approximately $461,000 and $639,000, respectively, related to stock options, restricted stock units and stock appreciation rights. As of June 30, 2017, the total unrecognized stock-based compensation cost was approximately $4,153,000, which will be recognized over the period from July 2017 through February 2020. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. 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. Potentially dilutive common shares outstanding consist of shares of Class A voting common stock issuable pursuant to stock options, SARs, and 760,000 equity warrants. These securities have no dilutive effect for the six months ended June 30, 2017 and 2016 as the Company reported losses from operations for the periods. The Series A and Series B Preferred Stock are participating securities as they contain rights to receive non-forfeitable dividends at the same rate as common stock. EPS is computed under the two-class method, which is a method of computing EPS when an entity has both common stock and participating securities. Under the two-class method, the income and distributions attributable to participating securities are excluded from the calculation of basic and diluted EPS and the participating securities are excluded from the weighted average shares outstanding. The dilutive effect of the participating securities was calculated under the treasury stock method and the two-class method. The EPS was more dilutive under the two-class method. As such, there is no difference in basic and diluted EPS. The following table presents unaudited earnings per share of Lonestar Resources US Inc. Unaudited Earnings Per Share Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net loss per share of Class A voting common stock: Basic $ (1.07 ) $ (1.71 ) $ (0.93 ) $ (3.21 ) Diluted (1.07 ) (1.71 ) (0.93 ) (3.21 ) Weighted average Class A voting common stock outstanding: Basic 21,822,015 7,522,025 21,822,015 7,522,025 Diluted 21,822,015 7,522,025 21,822,015 7,522,025 |
Related Party Activities
Related Party Activities | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Activities | 13. Related Party Activities LEUCADIA On August 2, 2016, Lonestar Resources America, Inc. (“LRAI”) and the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Juneau Energy, LLC (n/k/a JETX 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 $49.9 million aggregate principal amount of LRAI’s 12% senior secured second lien notes due 2021 (“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”). During 2016, LRAI issued $25 million in aggregate principal amount of Second Lien Notes and the Company issued Warrants to purchase 500,000 shares of its Class A voting common stock to Juneau. In December 2016, LRAI repaid to Juneau $21 million principal of the Second Lien Notes with proceeds from the 2016 Common Stock Offering. In connection with entering into the Purchase Agreement, the Company also entered into a registration rights agreement and an equity commitment agreement, both dated as of August 2, 2016. Pursuant to the registration rights agreement, the Company has agreed to register for resale certain Class A voting common stock issued or issuable to Juneau and Leucadia, including those issuable upon exercise of the Warrants. Leucadia agreed, pursuant to the equity commitment agreement, to purchase a certain number of Class A voting common stock in case the Company elected to pursue an equity offering prior to December 31, 2016. Pursuant to the equity commitment agreement, Leucadia purchased 3,478,261 shares of Class A voting common stock (costing $20 million) through the 2016 Common Stock Offering, which closed on December 22, 2016. In connection with Leucadia’s equity commitment, the Company paid Leucadia on January 3, 2017 a $1 million fee. In the event Leucadia purchased not less than its 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 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. Leucadia has elected to take an observer position on the board of directors, with no voting rights. EF REALISATION On October 26, 2016, the Company entered into a Board Representation Agreement (the “Board Representation Agreement”) with EF Realisation Company Limited (“EF Realisation”). Under the Board Representation Agreement, for as long as EF Realisation, together with its affiliates, beneficially owns 15% or more of the issued and outstanding shares of the Company’s Class A voting common stock, it has the right to nominate up to, but no more than, two directors to serve on the Board and for as long as EF Realisation, together with its affiliates, beneficially owns at least 10% but less than 15% of the Company’s issued and outstanding shares of Class A voting common stock, it has the right to nominate up to, but no more than, one director to serve on the Board. On October 26, 2016, the Company entered into a Registration Rights Agreement with EF Realisation, pursuant to which the Company agreed to register for resale Class A voting common stock indirectly owned by EF Realisation. The Company has agreed to file a registration statement providing for the resale of Class A voting common stock held by EF Realisation no later than the earlier of (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 has also granted EF Realisation certain piggyback and demand registration rights. AMENDMENT OF REGISTRATION RIGHTS AGREEMENTS In connection with the consummation of the Battlecat Acquisition, the Marquis Acquisition and the SPA Closing, on June 15, 2017, the Company entered into (i) a first amendment to the registration rights agreement (the “Leucadia RRA Amendment”) with Leucadia and JETX Energy, LLC (f/k/a Juneau Energy, LLC), which amends the registration rights agreement, dated as of August 2, 2016, by and among the same parties, and (ii) a first amendment to registration rights agreement (the “EF RRA Amendment” and, together with the Leucadia RRA Amendment, the “RRA Amendments”) with EF Realisation, which amends the registration rights agreement, dated as of October 26, 2016, by and between the same parties. The RRA Amendments set forth the relative priorities, with respect to demand and piggyback registration rights, among each applicable party thereto, Battlecat, Marquis and Chambers under their respective registration rights agreements with the Company. OTHER RELATED PARTY TRANSACTIONS 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. The consulting arrangement terminated effective December 31, 2016. 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 $156,000 and $134,000 for the three months ended June 30, 2017 and 2016, respectively, and approximately $388,000 and $363,000 for the six months ended June 30, 2017 and 2016, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events Rig Contract The Company entered into a rig contract with a third party with an effective date of July 21, 2017 whereby the third party provides a drilling rig for a daily rate of $18,500. The contract terminates on January 16, 2018. The early termination rate is equal to the daily drilling rate less $7,000 (or $11,500) times the number of days remaining on the contract term. Using the $11,500 early termination rate, the minimum remaining commitment per the terms of the agreement is approximately $2.1 million. |
Nature of Business and Presen21
Nature of Business and Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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 six months ended June 30, 2017 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. All significant intercompany balances and transactions have been eliminated in consolidation. |
Recently Issued Accounting Pronouncements | In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business" in order to clarify the definition of a business as it relates to whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. 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 under certain circumstances. The Company adopted ASU 2017-01 effective January 1, 2017. 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. The Company adopted ASU 2016-09 effective January 1, 2017. The Company has elected to record the impact of forfeitures on compensation cost as they occur. The Company is also permitted to withhold income taxes upon settlement of equity-classified awards at up to the maximum statutory rates. 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 beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the new guidance to determine the impact it will have on our consolidated results of operations, financial position or cash flows and anticipates adopting the guidance on the effective date of January 1, 2019. In May 2014, August 2015 and May 2016, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, ASU No. 2015-14, “Revenue from Contracts with Customers, Deferral of the Effective Date”, ASU No. 2016-12, “Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients”, and ASU No. 2016-20, “Revenue from Contracts with Customers, Technical Corrections and Improvements”, respectively, as a new Topic, Accounting Standards Codification Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company 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. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective for annual periods beginning after December 15, 2017 with early adoption permitted on January 1, 2017 and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. As we are in the process of evaluating the impact of the standard, we have not yet quantified the impact of adoption or determined the method of adoption. During 2017, we will perform the remainder of our implementation process, which will include quantification of impact, selection of adoption method and development of policies. The Company plans to adopt this guidance in the first quarter of 2018. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Pro Forma Revenue Statement | Three months ended June 30, 2017 Lonestar Marquis Battlecat Pro Forma Adjustments Pro Forma Lonestar Revenues $ 18,135 $ 5,373 $ 779 $ — $ 24,287 Net income (loss) attributable to common stockholders (23,457 ) 3,472 240 5,552 (14,193 ) Net income (loss) per common share, basic and diluted (1.07 ) — — — (0.65 ) Three months ended June 30, 2016 Lonestar Marquis Battlecat Pro Forma Adjustments Pro Forma Lonestar Revenues $ 17,803 $ 8,149 $ 961 $ — $ 26,913 Net income (loss) attributable to common stockholders (12,844 ) 4,596 648 (5,194 ) (12,794 ) Net income (loss) per common share, basic and diluted (1.71 ) — — — (1.70 ) Six months ended June 30, 2017 Lonestar Marquis Battlecat Pro Forma Adjustments Pro Forma Lonestar Revenues $ 35,751 $ 11,983 $ 1,802 $ — $ 49,536 Net income (loss) attributable to common stockholders (20,392 ) 7,688 603 922 (11,179 ) Net income (loss) per common share, basic and diluted (0.93 ) — — — (0.51 ) Six months ended June 30, 2016 Lonestar Marquis Battlecat Pro Forma Adjustments Pro Forma Lonestar Revenues $ 28,999 $ 14,917 $ 1,829 $ — $ 45,745 Net income (loss) attributable to common stockholders (24,142 ) 7,902 1,101 (10,427 ) (25,566 ) Net income (loss) per common share, basic and diluted (3.21 ) — — — (3.40 ) |
Commodity Price Risk Activiti23
Commodity Price Risk Activities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Transactions Outstanding | As of June 30, 2017, the following derivative transactions were outstanding: Instrument Total Volume Settlement Period Fixed Price Oil – WTI Fixed Price Swap 55,200 Bbl July – December 2017 $ 51.05 Oil – WTI Fixed Price Swap 36,800 Bbl July – December 2017 50.60 Oil – WTI Fixed Price Swap 184,000 Bbl July – December 2017 52.90 Oil – WTI Fixed Price Swap 92,000 Bbl July – December 2017 56.00 Oil – WTI Fixed Price Swap 365,000 Bbl January – December 2018 54.18 Oil – WTI Fixed Price Swap 182,500 Bbl January – December 2018 55.65 Oil – WTI Fixed Price Swap 182,500 Bbl January – December 2018 55.50 Oil – WTI Fixed Price Swap 292,000 Bbl January – December 2018 47.10 Oil – WTI Fixed Price Swap 560,700 Bbl January – December 2019 48.04 Oil – WTI Fixed Price Swap 203,600 Bbl January – June 2020 48.90 Natural Gas – Henry Hub NYMEX Fixed Price Swap 1,288,000 MMBtu July – December 2017 — Instrument Total Volume Settlement Period Puts Calls Oil – 3 Way Collar 174,200 Bbl July – December 2017 $ 40.00 / 60.00 $ 85.00 Oil – 2 Way Collar 182,500 Bbl January – December 2018 50.00 59.45 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016, 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 June 30, 2017 (Unaudited) (In thousands) Assets: Commodity derivatives $ — $ 10,504 $ — $ 10,504 Liabilities: Commodity derivatives — (1,404 ) — (1,404 ) Equity warrant liability — — (577 ) (577 ) Equity warrant liability - related parties — — (1,098 ) (1,098 ) Stock appreciation rights — — (149 ) (149 ) Total $ — $ 9,100 $ (1,824 ) $ 7,276 December 31, 2016 (In thousands) Assets: Commodity derivatives $ — $ 1,730 $ — $ 1,730 Liabilities: Commodity derivatives — (4,110 ) — (4,110 ) Equity warrant liability — — (1,565 ) (1,565 ) Equity warrant liability - related parties — — (2,994 ) (2,994 ) Total $ — $ (2,380 ) $ (4,559 ) $ (6,939 ) |
Summary of Changes in Fair Value for the Level 3 Liabilities | The table below sets forth a summary of changes in the fair value of the Company’s Level 3 liabilities for the six months ended June 30, 2017, in thousands. Equity Warrant Liability Stock Appreciation Rights Total (Unaudited) Balance at December 31, 2016 $ (4,559 ) $ — $ (4,559 ) Purchases, sales, issuances and settlements (net) — (72 ) (72 ) Realized gains/(losses) — — — Unrealized gains/(losses) 2,884 (77 ) 2,807 Balance at June 30, 2017 $ (1,675 ) $ (149 ) $ (1,824 ) |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Extractive Industries [Abstract] | |
Summary of Oil and Gas Properties | A summary of oil and gas properties is as follows: June 30, 2017 (Unaudited) December 31, 2016 (In thousands) Proved properties and equipment $ 654,074 $ 538,695 Unproved properties 114,848 72,584 Less accumulated depreciation, depletion, amortization, and impairment (223,433 ) (172,051 ) $ 545,489 $ 439,228 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | The accrued liabilities consisted of the following: June 30, 2017 (Unaudited) December 31, 2016 (In thousands) Bonus payable $ 3,239 $ 2,155 Payroll payable 8 1 Accrued interest - 8.750% Senior Notes 2,961 2,924 Accrued interest - other 355 523 Accrued rent 237 298 Accrued well costs 11,121 3,366 Accrued severance, property and franchise taxes 936 431 Accrued professional fees 3,788 — Other 438 249 $ 23,083 $ 9,947 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Schedule of Long-Term Debt | The long-term debt consisted of the following: June 30, 2017 (Unaudited) December 31, 2016 (In thousands) Senior Secured Credit Facility $ 117,079 $ 43,500 Second Lien Notes — 11,367 8.750% Senior Notes 151,848 151,848 Less unamortized discount on 8.750% Senior Notes (1,329 ) (1,708 ) Less deferred financing costs on 8.750% Senior Notes (662 ) (851 ) Less deferred financing costs on Second Lien Notes — (316 ) Other 267 282 $ 267,203 $ 204,122 |
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 2017 104.375 % 2018 and thereafter 100.000 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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: |
Schedule of Outstanding Restricted Stock Units | Shares Weighted Remaining Contractual Term (in years) Outstanding at December 31, 2016 — — RSUs vested at December 31, 2016 — — Granted 612,000 3.0 Canceled/Expired — — Forfeited (10,000 ) 2.8 Outstanding at June 30, 2017 602,000 2.8 RSUs vested at June 30, 2017 — — Shares Weighted Average Fair Value per Share Weighted Average Remaining Contractual Term (in years) Outstanding non-vested RSUs at December 31, 2016 — $ — — Granted 612,000 6.00 3.0 Vested — — — Forfeited (10,000 ) 4.10 2.8 Outstanding non-vested RSUs at June 30, 2017 602,000 $ 4.10 2.8 |
Schedule of Outstanding Stock Appreciation Rights | Shares Weighted Average Exercise Price Per Share Weighted Remaining Contractual Term (in years) Outstanding at December 31, 2016 — — — SARs vested and exercisable at December 31, 2016 — — — Granted 700,000 $ 7.20 5.0 Exercised — — — Canceled/Expired — — — Forfeited (10,000 ) 7.20 4.8 Outstanding at June 30, 2017 690,000 $ 7.20 4.8 SARs vested and exercisable at June 30, 2017 — $ — — Shares Weighted Average Fair Value per Share Weighted Average Exercise Price per share Weighted Average Remaining Contractual Term (in years) Outstanding non-vested SARs at December 31, 2016 — $ — $ — — Granted 700,000 5.00 7.20 5.0 Vested — — — — Forfeited (10,000 ) 4.10 7.20 4.8 Outstanding non-vested SARs at June 30, 2017 690,000 $ 4.10 $ 7.20 4.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Unaudited Earnings Per Share | The following table presents unaudited earnings per share of Lonestar Resources US Inc. Unaudited Earnings Per Share Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net loss per share of Class A voting common stock: Basic $ (1.07 ) $ (1.71 ) $ (0.93 ) $ (3.21 ) Diluted (1.07 ) (1.71 ) (0.93 ) (3.21 ) Weighted average Class A voting common stock outstanding: Basic 21,822,015 7,522,025 21,822,015 7,522,025 Diluted 21,822,015 7,522,025 21,822,015 7,522,025 |
Nature of Business and Presen30
Nature of Business and Presentation - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Nature Of Business And Presentation [Abstract] | |
Gain (loss) recorded under reorganization | $ 0 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) | Jun. 15, 2017USD ($)$ / sharesshares | Apr. 03, 2017USD ($)Well | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($) | Jun. 02, 2017$ / shares | Dec. 31, 2016$ / sharesshares |
Business Acquisition [Line Items] | ||||||||
Acquisition of oil and gas properties | $ 108,179,000 | $ 2,717,000 | ||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||||||
Accretion of asset retirement obligations | $ 38,000 | $ 51,000 | $ 58,000 | $ 107,000 | ||||
Acquisition costs | $ 2,726,000 | $ 2,726,000 | ||||||
Series B Convertible Participating Preferred Stock | ||||||||
Business Acquisition [Line Items] | ||||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Preferred stock, shares issued | shares | 2,684,632 | 2,684,632 | 0 | |||||
Series A-1 Convertible Participating Preferred Stock | ||||||||
Business Acquisition [Line Items] | ||||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred stock, shares issued | shares | 5,400 | 5,400 | 0 | |||||
Battlecat Oil & Gas, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition of oil and gas properties | $ 55,000,000 | |||||||
Effective date of acquisition | Apr. 1, 2017 | |||||||
Purchase consideration of oil and gas properties | $ 59,800,000 | |||||||
Purchase consideration paid to acquire proved reserves | 56,300,000 | |||||||
Purchase consideration paid to acquire unproved reserves | 2,900,000 | |||||||
Purchase consideration paid to acquire unevaluated acreage and other assets | 600,000 | |||||||
Accretion of asset retirement obligations | 200,000 | |||||||
Fair value of net assets acquired | 59,600,000 | |||||||
Acquisition costs | $ 1,500,000 | |||||||
Battlecat Oil & Gas, LLC | Series B Convertible Participating Preferred Stock | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of shares issued in connection with acquisition | shares | 1,184,632 | |||||||
Preferred stock, par value | $ / shares | $ 0.001 | |||||||
Value of shares issued in connection with acquisition | $ 4,800,000 | |||||||
SN Marquis LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition of oil and gas properties | $ 44,000,000 | |||||||
Effective date of acquisition | Jan. 1, 2017 | |||||||
Purchase consideration of oil and gas properties | $ 50,000,000 | |||||||
Purchase consideration paid to acquire proved reserves | 48,000,000 | |||||||
Purchase consideration paid to acquire unproved reserves | 600,000 | |||||||
Accretion of asset retirement obligations | 1,900,000 | |||||||
Fair value of net assets acquired | 48,100,000 | |||||||
Acquisition costs | 1,200,000 | |||||||
Purchase consideration paid to acquire land, building and other assets | $ 1,400,000 | |||||||
SN Marquis LLC | Series B Convertible Participating Preferred Stock | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of shares issued in connection with acquisition | shares | 1,500,000 | |||||||
Value of shares issued in connection with acquisition | $ 6,000,000 | |||||||
SN Marquis LLC | Series B Convertible Participating Preferred Stock | SN UR Holdings, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of shares issued in connection with acquisition | shares | 1,500,000 | |||||||
Battlecat and Marquis | ||||||||
Business Acquisition [Line Items] | ||||||||
Series A-1 convertible participating preferred stock, $0.001 par value and Series B convertible participating preferred stock, $0.001 par value, 5,400 shares and 2,684,632 shares issued and outstanding at June 30, 2017, respectively, 0 and 0 issued and outstanding at December 31, 2016, respectively | $ 80,000,000 | |||||||
Preferred stock issued to finance acquisition, convertible conversion price | $ / shares | $ 6 | |||||||
Senior Secured Credit Facility issue to finance acquisition | $ 24,000,000 | |||||||
Battlecat and Marquis | Series A-1 Convertible Participating Preferred Stock | ||||||||
Business Acquisition [Line Items] | ||||||||
Preferred stock, shares issued | shares | 5,400 | |||||||
Battlecat and Marquis | Series A-2 Convertible Participating Preferred Stock | ||||||||
Business Acquisition [Line Items] | ||||||||
Preferred stock, shares issued | shares | 74,600 | |||||||
Eagleford Gas 8, LLC | Gonzales | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase and sale agreement date | Mar. 13, 2017 | |||||||
Undivided working interest acquired in producing wells | 33.50% | |||||||
Undivided revenue interest acquired in producing wells | 26.80% | |||||||
Productive oil wells, number of wells | Well | 6 | |||||||
Acquisition of oil and gas properties | $ 7,600,000 | |||||||
Effective date of acquisition | Apr. 1, 2017 |
Acquisitions and Divestitures32
Acquisitions and Divestitures - Pro Forma Revenue Statement (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||||
Revenues | $ 24,287 | $ 26,913 | $ 49,536 | $ 45,745 |
Net income (loss) attributable to common stockholders | $ (14,193) | $ (12,794) | $ (11,179) | $ (25,566) |
Net income (loss) per common share, basic and diluted | $ (0.65) | $ (1.70) | $ (0.51) | $ (3.40) |
Pro Forma Adjustments | ||||
Business Acquisition [Line Items] | ||||
Net income (loss) attributable to common stockholders | $ 5,552 | $ (5,194) | $ 922 | $ (10,427) |
SN Marquis LLC | ||||
Business Acquisition [Line Items] | ||||
Revenues | 5,373 | 8,149 | 11,983 | 14,917 |
Net income (loss) attributable to common stockholders | 3,472 | 4,596 | 7,688 | 7,902 |
Battlecat Oil & Gas, LLC | ||||
Business Acquisition [Line Items] | ||||
Revenues | 779 | 961 | 1,802 | 1,829 |
Net income (loss) attributable to common stockholders | 240 | 648 | 603 | 1,101 |
LRAI | ||||
Business Acquisition [Line Items] | ||||
Revenues | 18,135 | 17,803 | 35,751 | 28,999 |
Net income (loss) attributable to common stockholders | $ (23,457) | $ (12,844) | $ (20,392) | $ (24,142) |
Net income (loss) per common share, basic and diluted | $ (1.07) | $ (1.71) | $ (0.93) | $ (3.21) |
Restricted Certificate of Dep33
Restricted Certificate of Deposit - Additional Information (Details) - Restricted Certificate of Deposit | 6 Months Ended |
Jun. 30, 2017 | |
Certificates Of Deposit [Line Items] | |
Investment maturity date | Mar. 8, 2018 |
Investment interest rate | 0.25% |
Commodity Price Risk Activiti34
Commodity Price Risk Activities - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2017bbl / dMMBTU / dMMBTUDeliveryObligationbbl | |
Derivative [Line Items] | |
Number of open physical obligations | DeliveryObligation | 0 |
Derivative Contracts, Remainder of 2017 | |
Derivative [Line Items] | |
Derivative contracts, aggregate volume | bbl | 542,200 |
Derivative contracts, aggregate volume per day | bbl / d | 2,947 |
Derivative Contracts, 2018 | |
Derivative [Line Items] | |
Derivative contracts, aggregate volume | bbl | 1,204,500 |
Derivative contracts, aggregate volume per day | bbl / d | 3,300 |
Derivative Contracts, 2019 | |
Derivative [Line Items] | |
Derivative contracts, aggregate volume | bbl | 560,700 |
Derivative contracts, aggregate volume per day | bbl / d | 1,536 |
Natural Gas Derivative Contracts, 2017 | |
Derivative [Line Items] | |
Derivative contracts, aggregate energy | MMBTU | 1,288,000 |
Derivative contracts, aggregate volume per day | MMBTU / d | 7,000 |
Derivative Contracts, 2020 | |
Derivative [Line Items] | |
Derivative contracts, aggregate volume | bbl | 203,600 |
Derivative contracts, aggregate volume per day | bbl / d | 1,119 |
Commodity Price Risk Activiti35
Commodity Price Risk Activities - Schedule of Derivative Transactions Outstanding (Details) | 6 Months Ended |
Jun. 30, 2017MMBTU$ / bblbbl | |
Oil - WTI Fixed Price Swap - $51.05 - Settlement Period - July - December 2017 | |
Derivative [Line Items] | |
Total Volume | bbl | 55,200 |
Fixed Price | 51.05 |
Oil - WTI Fixed Price Swap - $50.60 - Settlement Period - July - December 2017 | |
Derivative [Line Items] | |
Total Volume | bbl | 36,800 |
Fixed Price | 50.60 |
Oil - WTI Fixed Price Swap - $52.90 - Settlement Period - July - December 2017 | |
Derivative [Line Items] | |
Total Volume | bbl | 184,000 |
Fixed Price | 52.90 |
Oil - WTI Fixed Price Swap - $56.00 - Settlement Period - July - December 2017 | |
Derivative [Line Items] | |
Total Volume | bbl | 92,000 |
Fixed Price | 56 |
Oil - WTI Fixed Price Swap - $54.18 - Settlement Period - January - December 2018 | |
Derivative [Line Items] | |
Total Volume | bbl | 365,000 |
Fixed Price | 54.18 |
Oil - WTI Fixed Price Swap - $55.65 - Settlement Period - January - December 2018 | |
Derivative [Line Items] | |
Total Volume | bbl | 182,500 |
Fixed Price | 55.65 |
Oil - WTI Fixed Price Swap - $55.50 - Settlement Period - January - December 2018 | |
Derivative [Line Items] | |
Total Volume | bbl | 182,500 |
Fixed Price | 55.50 |
Oil - WTI Fixed Price Swap - $47.10 - Settlement Period - January - December 2018 | |
Derivative [Line Items] | |
Total Volume | bbl | 292,000 |
Fixed Price | 47.10 |
Oil - WTI Fixed Price Swap - $48.04 - Settlement Period - January - December 2019 | |
Derivative [Line Items] | |
Total Volume | bbl | 560,700 |
Fixed Price | 48.04 |
Oil - WTI Fixed Price Swap - $48.90 - Settlement Period - January - June 2020 | |
Derivative [Line Items] | |
Total Volume | bbl | 203,600 |
Fixed Price | 48.90 |
Natural Gas - Henry Hub NYMEX Fixed Price Swap - $3.36 - Settlement Period - July - December 2017 | |
Derivative [Line Items] | |
Total Energy | MMBTU | 1,288,000 |
Oil - 3 Way Collar - Settlement Period - July - December 2017 | |
Derivative [Line Items] | |
Total Volume | bbl | 174,200 |
Oil - 3 Way Collar - Settlement Period - July - December 2017 | Puts | Minimum | |
Derivative [Line Items] | |
Fixed Price | 40 |
Oil - 3 Way Collar - Settlement Period - July - December 2017 | Puts | Maximum | |
Derivative [Line Items] | |
Fixed Price | 60 |
Oil - 3 Way Collar - Settlement Period - July - December 2017 | Calls | |
Derivative [Line Items] | |
Fixed Price | 85 |
Oil - 2 Way Collar - Settlement Period - January - December 2018 | |
Derivative [Line Items] | |
Total Volume | bbl | 182,500 |
Oil - 2 Way Collar - Settlement Period - January - December 2018 | Puts | |
Derivative [Line Items] | |
Fixed Price | 50 |
Oil - 2 Way Collar - Settlement Period - January - December 2018 | Calls | |
Derivative [Line Items] | |
Fixed Price | 59.45 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity warrant liability | $ (577) | $ (1,565) |
Equity warrant liability - related parties | (1,098) | (2,994) |
Stock appreciation rights | (149) | |
Total | 7,276 | (6,939) |
Commodity Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 10,504 | 1,730 |
Liabilities | (1,404) | (4,110) |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 9,100 | (2,380) |
Significant Other Observable Inputs (Level 2) | Commodity Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 10,504 | 1,730 |
Liabilities | (1,404) | (4,110) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity warrant liability | (577) | (1,565) |
Equity warrant liability - related parties | (1,098) | (2,994) |
Stock appreciation rights | (149) | |
Total | $ (1,824) | $ (4,559) |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value for the Level 3 Liabilities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ (4,559) |
Purchases, sales, issuances and settlements (net) | (72) |
Unrealized gains/(losses) | 2,807 |
Ending balance | (1,824) |
Equity Warrant Liability | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Beginning balance | (4,559) |
Unrealized gains/(losses) | 2,884 |
Ending balance | (1,675) |
Stock Appreciation Rights | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Purchases, sales, issuances and settlements (net) | (72) |
Unrealized gains/(losses) | (77) |
Ending balance | $ (149) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - 8.750% Senior Notes Due April 15, 2019 $ in Millions | Jun. 30, 2017USD ($) |
Debt Instrument [Line Items] | |
Fair value of senior notes | $ 145 |
Debt instrument interest rate | 8.75% |
Oil and Gas Properties - Summar
Oil and Gas Properties - Summary of Oil and Gas Properties (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Oil And Gas Exploration And Production Industries Disclosures [Abstract] | ||
Proved properties and equipment | $ 654,074 | $ 538,695 |
Unproved properties | 114,848 | 72,584 |
Less accumulated depreciation, depletion, amortization, and impairment | (223,433) | (172,051) |
Oil and gas property, net | $ 545,489 | $ 439,228 |
Oil and Gas Properties - Additi
Oil and Gas Properties - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)a | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)a | Jun. 30, 2016USD ($) | |
Oil And Gas Exploration And Production Industries Disclosures [Abstract] | ||||
Impairment of oil and gas properties | $ | $ 27,081 | $ 1,938 | $ 27,081 | $ 1,938 |
Area of land development | a | 57,172 | 57,172 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Bonus payable | $ 3,239 | $ 2,155 |
Payroll payable | 8 | 1 |
Accrued interest - 8.750% Senior Notes | 2,961 | 2,924 |
Accrued interest - other | 355 | 523 |
Accrued rent | 237 | 298 |
Accrued well costs | 11,121 | 3,366 |
Accrued severance, property and franchise taxes | 936 | 431 |
Accrued professional fees | 3,788 | |
Other | 438 | 249 |
Accrued liabilities excluding due to related parties | $ 23,083 | $ 9,947 |
Accrued Liabilities - Schedul42
Accrued Liabilities - Schedule of Accrued Liabilities Parenthetical (Details) | Jun. 30, 2017 |
8.750% Senior Notes Due April 15, 2019 | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 8.75% |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Senior Secured Credit Facility | $ 117,079,081 | $ 43,500,000 |
Second Lien Notes | 11,367,000 | |
8.750% Senior Notes | 151,848,000 | 151,848,000 |
Less unamortized discount on 8.750% Senior Notes | (1,329,000) | (1,708,000) |
Other | 267,000 | 282,000 |
Long-term debt net of deferred financing costs on bonds | 267,203,000 | 204,122,000 |
8.750% Senior Notes Due April 15, 2019 | ||
Debt Instrument [Line Items] | ||
Less deferred financing costs | $ (662,000) | (851,000) |
Second Lien Notes | ||
Debt Instrument [Line Items] | ||
Less deferred financing costs | $ (316,000) |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility - Additional Information (Details) - USD ($) | Jun. 15, 2017 | Jul. 27, 2016 | Jul. 28, 2015 | Jun. 30, 2017 | Dec. 31, 2016 | Nov. 23, 2016 | May 19, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||||||
Senior Secured Credit Facility | $ 117,079,081 | $ 43,500,000 | ||||||
Borrowing base availabitly | 42,920,919 | |||||||
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) | Quarter Period Ending June Thirty Two Thousand Sixteen | ||||||||
Debt Instrument [Line Items] | ||||||||
Leverage ratio | 475.00% | |||||||
Third Amendment to Credit Agreement and Limited Waiver (the Amendment) | Quarter Period Ending September Thirty Two Thousand Sixteen | ||||||||
Debt Instrument [Line Items] | ||||||||
Leverage ratio | 450.00% | |||||||
Third Amendment to Credit Agreement and Limited Waiver (the Amendment) | Quarter Period Ending December Thirty One Two Thousand Sixteen | ||||||||
Debt Instrument [Line Items] | ||||||||
Leverage ratio | 425.00% | |||||||
Third Amendment to Credit Agreement and Limited Waiver (the Amendment) | All Periods After December Thirty One Two Thousand Sixteen | ||||||||
Debt Instrument [Line Items] | ||||||||
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) | 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 | $ 112,000,000 | $ 120,000,000 | $ 180,000,000 | |||||
Debt instrument maturity date | Oct. 16, 2018 | |||||||
LRAI | Marquis Closing and Battlecat Closing | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument expanded borrowing base | $ 160,000,000 | $ 112,000,000 | ||||||
LRAI | Maximum | Marquis Closing and Battlecat Closing | ||||||||
Debt Instrument [Line Items] | ||||||||
Leverage ratio | 400.00% | |||||||
LRAI | Senior Secured Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis spread on variable rate | 4.87% | |||||||
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 | Adjusted LIBOR Rate | ||||||||
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 | ABR | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin of loans, minimum | 0.75% | |||||||
Margin of loans, maximum | 1.75% | |||||||
LRAI | Senior Secured Credit Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Lien percentage of assets for senior secured credit facility | 80.00% | |||||||
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) - USD ($) | Apr. 15, 2016 | Apr. 04, 2014 | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
8.750% Senior Notes | $ 151,848,000 | $ 151,848,000 | ||
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 | |||
8.750% Senior Notes Due April 15, 2019 | LRAI | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 220,000,000 | |||
Debt instrument interest rate | 8.75% | 8.75% | ||
Debt instrument maturity date | Apr. 15, 2019 | |||
Debt instrument repurchase amount | $ 68,200,000 | |||
8.750% Senior Notes | $ 151,800,000 | |||
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 | 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 ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | $ 3,400,000 | $ 1,200,000 |
Long-Term Debt - Securities Pur
Long-Term Debt - Securities Purchase Agreement and Second Lien Notes - Additional Information (Details) - USD ($) | Aug. 02, 2016 | Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Unrealized gain on warrants | $ 614,000 | $ 2,884,000 | ||
Class A Voting Common Stock | ||||
Debt Instrument [Line Items] | ||||
Warrants to purchase common stock | 760,000 | 760,000 | ||
Warrant liability | $ 5,100,000 | $ 5,100,000 | ||
Second Lien Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 38,000,000 | 38,000,000 | ||
Repayment of principal second lien notes | $ 17,000,000 | 17,000,000 | $ 21,000,000 | |
Early payment premium | 1,100,000 | |||
Charge due to early recognition of the warrant discount | $ 2,000,000 | |||
8.750% Senior Notes Due April 15, 2019 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 8.75% | 8.75% | ||
Debt instrument repurchase amount | $ 68,200,000 | $ 68,200,000 | ||
Cash paid for repurchase of debt instrument | 36,200,000 | |||
Gain on repurchase of debt instrument | $ 28,500,000 | |||
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 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 15, 2017 | Jun. 02, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Class Of Stock [Line Items] | ||||
Preferred stock, authorized | 10,000,000 | |||
Preferred stock, par value | $ 0.001 | |||
Proceeds from sale of preferred stock | $ 78,000 | $ 77,800 | ||
Minimum percentage of outstanding common stock beneficially own by approved holders | 10.00% | |||
Senior Unsecured Notes | ||||
Class Of Stock [Line Items] | ||||
Unsecured notes, maturity period | 2 years | |||
Debt instrument interest rate | 9.00% | |||
Series A-1 Convertible Participating Preferred Stock | ||||
Class Of Stock [Line Items] | ||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Conversion of Stock Conversion Rate | the Stated Value of such share divided by six | |||
Conversion of stock, threshold trading days | 20 days | |||
Conversion of stock, threshold consecutive trading days | 30 days | |||
Threshold percentage of conversion price prior to June 15, 2019 | 200.00% | |||
Threshold percentage of conversion price after June 15, 2019 but before June 15, 2020 | 175.00% | |||
Threshold percentage of conversion price after June 15, 2020 | 150.00% | |||
Common stock issued, conversion of convertible securities | 1,678,089 | |||
Preferred stock, dividend rate, percentage | 20.00% | |||
Stock conversion terms | the Company, at its option, may instead elect to exchange each share of Series A-1 Preferred Stock for senior unsecured notes of the Company with a two-year maturity, a 9.0% per annum coupon payable semi-annually in cash, and governed by terms substantially similar to the Company’s most recent high yield indenture at that time. | |||
Preferred stock, shares issued | 5,400 | 0 | ||
Preferred stock, shares outstanding | 5,400 | 0 | ||
Series A-1 Convertible Participating Preferred Stock | Chambers Energy Capital I I I L P | ||||
Class Of Stock [Line Items] | ||||
Sale of common stock, net of offering costs (in shares) | 5,400 | |||
Series A-2 Convertible Participating Preferred Stock | ||||
Class Of Stock [Line Items] | ||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Shares issued upon conversion | 1 | |||
Increase in preferred stock dividend percentage | 5.00% | |||
Additional increase in dividend percentage in each quarters | 0.50% | |||
Preferred stock, shares issued | 74,600 | 0 | ||
Preferred stock, shares outstanding | 74,600 | 0 | ||
Series A-2 Convertible Participating Preferred Stock | Maximum | ||||
Class Of Stock [Line Items] | ||||
Preferred stock, dividend rate, percentage | 20.00% | |||
Series A-2 Convertible Participating Preferred Stock | Chambers Energy Capital I I I L P | ||||
Class Of Stock [Line Items] | ||||
Convertible participating preferred stock, number of shares issued | 74,600 | |||
Series A Preferred Stock | ||||
Class Of Stock [Line Items] | ||||
Minimum percentage of outstanding preferred stock beneficially own by approved holders | 15.00% | |||
Preferred stock, liquidation preference per share | $ 1,000 | |||
Preferred stock, voting rights | one vote per share | |||
Preferred stock, dividend rate, percentage | 9.00% | |||
Shares issued, price per share | $ 975 | |||
Preferred stock, increase in dividend rate for next succeeding dividend period | 5.00% | |||
Preferred stock, additional increase in dividend rate for each successive dividend period | 1.00% | |||
Series A Preferred Stock | Prior to June 15, 2021 | ||||
Class Of Stock [Line Items] | ||||
Preferred stock redemption percentage | 110.00% | |||
Series A Preferred Stock | Prior to June 15, 2022 | ||||
Class Of Stock [Line Items] | ||||
Preferred stock redemption percentage | 105.00% | |||
Series A Preferred Stock | After June 15, 2022 | ||||
Class Of Stock [Line Items] | ||||
Preferred stock redemption percentage | 100.00% | |||
Series A Preferred Stock | Maximum | ||||
Class Of Stock [Line Items] | ||||
Preferred stock, dividend rate, percentage | 20.00% | |||
Series B Convertible Participating Preferred Stock | ||||
Class Of Stock [Line Items] | ||||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Preferred stock, liquidation preference per share | $ 0.001 | |||
Shares issued upon conversion | 1 | |||
Preferred stock, voting rights | no voting rights | |||
Preferred stock, shares issued | 2,684,632 | 0 | ||
Preferred stock, shares outstanding | 2,684,632 | 0 | ||
Class A Voting Common Stock | ||||
Class Of Stock [Line Items] | ||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Common stock, shares issued | 21,822,015 | 21,822,015 | ||
Common stock, shares outstanding | 21,822,015 | 21,822,015 | ||
Class B Non-Voting Common Stock | ||||
Class Of Stock [Line Items] | ||||
Common stock, shares authorized | 5,000 | 5,000 | ||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Common stock, shares issued | 2,500 | 2,500 | ||
Common stock, shares outstanding | 2,500 | 2,500 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Feb. 28, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options issue or exercised | 0 | ||
Unrecognized stock-based compensation cost | $ 4,153,000 | $ 4,153,000 | |
Recognition period start date | 2017-07 | ||
Recognition period end date | 2020-02 | ||
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares granted to employees | 612,000 | 612,000 | |
Vesting period of options granted | 3 years | ||
Stock-based compensation expenses | 461,000 | $ 639,000 | |
Restricted Stock Units (RSUs) | Vesting on First Anniversary | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation award vesting rights, Percentage | 40.00% | ||
Restricted Stock Units (RSUs) | Vesting on Second Anniversary | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation award vesting rights, Percentage | 30.00% | ||
Restricted Stock Units (RSUs) | Vesting on Third Anniversary | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation award vesting rights, Percentage | 30.00% | ||
Stock Appreciation Rights (SARs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares granted to employees | 700,000 | 700,000 | |
Vesting period of options granted | 3 years | ||
Share-based compensation expiration period | 5 years | ||
Stock-based compensation expenses | 461,000 | $ 639,000 | |
Stock Appreciation Rights (SARs) | Vesting on First Anniversary | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation award vesting rights, Percentage | 40.00% | ||
Stock Appreciation Rights (SARs) | Vesting on Second Anniversary | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation award vesting rights, Percentage | 30.00% | ||
Stock Appreciation Rights (SARs) | Vesting on Third Anniversary | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation award vesting rights, Percentage | 30.00% | ||
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expenses | $ 461,000 | $ 639,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Outstanding Stock Options (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Outstanding Shares [Roll Forward] | ||
Exercised, Shares | 0 | |
Lonestar Resources Limited 2012 Employee Share Option Plan and Lonestar Resources US Inc 2016 Employee Incentive Plan | ||
Outstanding Shares [Roll Forward] | ||
Outstanding at beginning of period, Shares | 191,750 | |
Canceled/Expired, Shares | (16,125) | |
Forfeited, Shares | (75,000) | |
Outstanding at end of period, Shares | 100,625 | 191,750 |
Options vested and exercisable, Shares | 100,625 | 191,750 |
Outstanding at beginning of period, Weighted Average Exercise Price Per Share | $ 15 | |
Forfeited, Weighted Average Exercise Price Per Share | 20 | |
Outstanding at end of period, Weighted Average Exercise Price Per Share | 15 | $ 15 |
Options vested and exercisable, Weighted Average Exercise Price Per Share | $ 15 | $ 15 |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 6 months | 6 months |
Options vested and exercisable, Weighted Average Remaining Contractual Term (in years) | 6 months | 6 months |
Stock-Based Compensation - Sc52
Stock-Based Compensation - Schedule of Outstanding Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - $ / shares | 1 Months Ended | 6 Months Ended |
Feb. 28, 2017 | Jun. 30, 2017 | |
Outstanding Shares [Roll Forward] | ||
Granted, Shares | 612,000 | 612,000 |
Forfeited, Shares | (10,000) | |
Outstanding at end of period, Shares | 602,000 | |
Granted, Weighted Average Remaining Contractual Term (in years) | 3 years | |
Forfeited, Weighted Average Remaining Contractual Term (in years) | 2 years 9 months 18 days | |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 2 years 9 months 18 days | |
Non-vested Shares [Roll Forward] | ||
Granted, Shares | 612,000 | |
Forfeited, Shares | (10,000) | |
Outstanding non-vested options at end of period, Shares | 602,000 | |
Granted, Weighted Average Fair Value per Share | $ 6 | |
Forfeited, Weighted Average Fair Value per Share | 4.10 | |
Outstanding non-vested options at ending of period, Weighted Average Fair Value per Share | $ 4.10 | |
Outstanding non-vested options, Weighted Average Remaining Contractual Term (in years) | 2 years 9 months 18 days | |
Granted non-vested options, Weighted Average Remaining Contractual Term (in years) | 3 years | |
Forfeited non-vested options, Weighted Average Remaining Contractual Term (in years) | 2 years 9 months 18 days |
Stock-Based Compensation - Sc53
Stock-Based Compensation - Schedule of Outstanding Stock Appreciation Rights (Details) - Stock Appreciation Rights (SARs) - $ / shares | 1 Months Ended | 6 Months Ended |
Feb. 28, 2017 | Jun. 30, 2017 | |
Outstanding Shares [Roll Forward] | ||
Granted, Shares | 700,000 | 700,000 |
Forfeited, Shares | (10,000) | |
Outstanding at end of period, Shares | 690,000 | |
Granted, Weighted Average Exercise Price Per Share | $ 7.20 | |
Forfeited, Weighted Average Exercise Price Per Share | 7.20 | |
Outstanding at end of period, Weighted Average Exercise Price Per Share | $ 7.20 | |
Granted non-vested options, Weighted Average Remaining Contractual Term (in years) | 5 years | |
Forfeited non-vested options, Weighted Average Remaining Contractual Term (in years) | 4 years 9 months 18 days | |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 4 years 9 months 18 days | |
Non-vested Shares [Roll Forward] | ||
Granted, Shares | 700,000 | |
Forfeited, Shares | (10,000) | |
Outstanding non-vested options at end of period, Shares | 690,000 | |
Granted, Weighted Average Fair Value per Share | $ 5 | |
Forfeited, Weighted Average Fair Value per Share | 4.10 | |
Outstanding non-vested options at ending of period, Weighted Average Fair Value per Share | 4.10 | |
Granted, Weighted Average Exercise Price per share | 7.20 | |
Forfeited, Weighted Average Exercise Price per share | 7.20 | |
Outstanding non-vested options end of period, Weighted Average Exercise Price per share | $ 7.20 | |
Granted, Weighted Average Remaining Contractual Term (in years) | 5 years | |
Forfeited, Weighted Average Remaining Contractual Term (in years) | 4 years 9 months 18 days | |
Outstanding non-vested options, Weighted Average Remaining Contractual Term (in years) | 4 years 9 months 18 days |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||
Dilutive effect of earnings per share | $ 0 | $ 0 |
Dilutive warrants | 760,000 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Unaudited Earnings Per Share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net loss per share of Class A voting common stock: | ||||
Basic | $ (1.07) | $ (1.71) | $ (0.93) | $ (3.21) |
Diluted | $ (1.07) | $ (1.71) | $ (0.93) | $ (3.21) |
Weighted average Class A voting common stock outstanding: | ||||
Basic | 21,822,015 | 7,522,025 | 21,822,015 | 7,522,025 |
Diluted | 21,822,015 | 7,522,025 | 21,822,015 | 7,522,025 |
Related Party Activities - Addi
Related Party Activities - Additional Information (Details) | Jan. 03, 2017USD ($) | Aug. 02, 2016USD ($)$ / sharesshares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($) | Dec. 22, 2016USD ($)shares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)shares | Oct. 26, 2016Director |
Related Party Transaction [Line Items] | |||||||||
Registration rights agreement description | the Company entered into a Registration Rights Agreement with EF Realisation, pursuant to which the Company agreed to register for resale Class A voting common stock indirectly owned by EF Realisation. The Company has agreed to file a registration statement providing for the resale of Class A voting common stock held by EF Realisation no later than the earlier of (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 has also granted EF Realisation certain piggyback and demand registration rights. | ||||||||
Class A Voting Common Stock | |||||||||
Related Party Transaction [Line Items] | |||||||||
Warrants to purchase common stock | shares | 760,000 | 760,000 | |||||||
Second Lien Notes | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument face amount | $ 38,000,000 | $ 38,000,000 | |||||||
Repayment of principal second lien notes | $ 17,000,000 | $ 17,000,000 | $ 21,000,000 | ||||||
Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument interest rate | 12.00% | ||||||||
Common stock price per share | $ / shares | $ 5 | ||||||||
Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | Maximum | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument face amount | $ 49,900,000 | ||||||||
Number of common shares issued | shares | 998,000 | ||||||||
Leucadia | |||||||||
Related Party Transaction [Line Items] | |||||||||
Equity offering cost | $ 1,000,000 | ||||||||
Leucadia | Class A Voting Common Stock | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of common shares issued | shares | 3,478,261 | ||||||||
Common shares issued, Value | $ 20,000,000 | ||||||||
Leucadia | Maximum | Class A Voting Common Stock | |||||||||
Related Party Transaction [Line Items] | |||||||||
Minimum ownership percentage required to appoint board of directors | 50.00% | 50.00% | |||||||
Leucadia | Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument interest rate | 12.00% | ||||||||
Common stock price per share | $ / shares | $ 5 | ||||||||
Leucadia | Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | Maximum | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument face amount | $ 49,900,000 | ||||||||
Warrants to purchase common stock | shares | 998,000 | ||||||||
Juneau Energy, LLC | Securities Purchase Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Warrants to purchase common stock | shares | 500,000 | ||||||||
Juneau Energy, LLC | Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | |||||||||
Related Party Transaction [Line Items] | |||||||||
Sale of stock, description of transaction | (i) up to $49.9 million aggregate principal amount of LRAI’s 12% senior secured second lien notes due 2021 (“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”). During 2016, LRAI issued $25 million in aggregate principal amount of Second Lien Notes and the Company issued Warrants to purchase 500,000 shares of its Class A voting common stock to Juneau. In December 2016, LRAI repaid to Juneau $21 million principal of the Second Lien Notes with proceeds from the 2016 Common Stock Offering. | ||||||||
Juneau Energy, LLC | Securities Purchase Agreement | Second Lien Notes | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument face amount | $ 25,000,000 | ||||||||
Repayment of principal second lien notes | $ 21,000,000 | ||||||||
EF Realisation | Class A Voting Common Stock | Board Representation Agreement | |||||||||
Related Party Transaction [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% | ||||||||
EF Realisation | Maximum | Class A Voting Common Stock | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of directors to be nominated | Director | 2 | ||||||||
EF Realisation | Minimum | Class A Voting Common Stock | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of directors to be nominated | Director | 1 | ||||||||
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 | $ 156,000 | $ 134,000 | $ 388,000 | $ 363,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Drilling Rig - USD ($) | Jul. 21, 2017 | Jun. 30, 2017 |
Subsequent Event [Line Items] | ||
Drilling rig termination fee description | The early termination rate is equal to the daily drilling rate less $7,000 (or $11,500) times the number of days remaining on the contract term. Using the $11,500 early termination rate, the minimum remaining commitment per the terms of the agreement is approximately $2.1 million | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Daily drilling rate | $ 18,500,000 | |
Leased acreage expiration date | Jan. 16, 2018 | |
Subsequent Event | Minimum | ||
Subsequent Event [Line Items] | ||
Early termination fee | $ 7,000,000 | |
Drilling rig remaining commitment | 2,100,000 | |
Subsequent Event | Maximum | ||
Subsequent Event [Line Items] | ||
Early termination fee | $ 11,500,000 |