Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 23, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Amendment Description | This Amendment No. 1 on Form 10-K/A (this “Form 10-K/A") amends and restates certain items noted below in the Annual Report on Form 10-K of Lonestar Resources US Inc. (the “Company”) for the year ended December 31, 2017, as originally filed with the Securities and Exchange Commission on March 29, 2018 (the “Original Filing”). This Form 10-K/A amends the Original Filing to reflect the correction of an error in the previously-reported 2016 and 2017 consolidated financial statements related to the Company’s depreciation, depletion and amortization (“DD&A”) expense calculation, as well as the related tax impacts. See Note 2 to the Consolidated Financial Statements included in Item 8 for additional information and a reconciliation of the previously reported amounts to the restated amounts. For the convenience of the reader, this Form 10-K/A sets forth the Original Filing, as amended, in its entirety; however, this Form 10-K/A amends and restates only the following financial statements and disclosures that were impacted from the correction of the error: Part I, Item 1 – Business Part I, Item 1A – Risk Factors Part II, Item 6 – Selected Financial Data Part II, Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations Part II, Item 8 – Financial Statements and Supplementary Data Part II, Item 9A – Controls and Procedures Part IV, Item 15 – Exhibits and Financial Statement Schedules Signatures This Form 10-K/A also amends Part I, Item 1 – Executive Officers and Directors to reflect the current executive officers and directors of the Company. In addition, the Company’s Chief Executive Officer and Chief Accounting Officer have provided new certifications dated as of the date of this filing in connection with this Form 10-K/A (Exhibits 31.1, 31.2, 32.1 and 32.2), and the Company has provided its revised audited consolidated financial statements formatted in Extensible Business Reporting Language (XBRL) in Exhibit 101. Except as described above, no other changes have been made to the Original Filing. This Form 10-K/A speaks as of the date of the Original Filing and does not reflect events that may have occurred after the date of the Original Filing or modify or update any disclosures that may have been affected by subsequent events. Accordingly, this Form 10-K/A should be read in conjunction with the Company’s other filings made with the SEC subsequent to the filing of the Original Filing, including any amendments to those filings. The Company is also concurrently filing amended Quarterly Reports for the quarters ended March 31, 2018 and June 30, 2018 to restate the previously issued interim financial statements due to the accounting error described above. | ||
Document Period End Date | Dec. 31, 2017 | ||
Trading Symbol | LONE | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Lonestar Resources US Inc. | ||
Entity Central Index Key | 1,661,920 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 57 | ||
Entity Common Stock, Shares Outstanding | 24,634,313 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 2,538 | $ 6,068 |
Accounts receivable: | ||
Oil, natural gas liquid and natural gas sales | 12,289 | 4,680 |
Joint interest owners and other, net | 794 | 867 |
Related parties | 162 | 847 |
Derivative financial instruments | 472 | 1,730 |
Prepaid expenses and other | 2,365 | 2,631 |
Total current assets | 18,620 | 16,823 |
Oil and gas properties, net, using the successful efforts method of accounting | 556,171 | 428,336 |
Other property and equipment, net | 14,099 | 1,421 |
Other noncurrent assets | 2,918 | 1,561 |
Restricted certificates of deposit | 76 | |
Total assets | 591,808 | 448,217 |
Current liabilities | ||
Accounts payable | 25,901 | 14,896 |
Accounts payable – related parties | 389 | 1,135 |
Oil, natural gas liquid and natural gas sales payable | 8,747 | 3,568 |
Accrued liabilities | 16,583 | 9,947 |
Accrued liabilities – related parties | 224 | |
Derivative financial instruments | 12,336 | 2,985 |
Total current liabilities | 63,956 | 32,755 |
Long-term liabilities | ||
Long-term debt | 301,155 | 204,122 |
Long-term debt - related parties | 3,400 | |
Deferred tax liability | 4,769 | 33,960 |
Other non-current liabilities | 1,316 | 6,052 |
Equity warrant liability | 508 | 1,565 |
Equity warrant liability - related parties | 963 | 2,994 |
Asset retirement obligations | 5,649 | 2,683 |
Derivative financial instruments | 9,802 | 1,125 |
Total liabilities | 388,118 | 288,656 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Series A-1 convertible participating preferred stock, $0.001 par value, and Series B convertible participating preferred stock, $0.001 par value, 83,968 and 0 shares, respectively, issued and outstanding at December 31, 2017, and none issued and outstanding at December 31, 2016 | ||
Additional paid-in capital | 174,871 | 87,260 |
Accumulated deficit | (113,836) | (70,351) |
Total stockholders’ equity | 203,690 | 159,561 |
Total liabilities and stockholders’ equity | 591,808 | 448,217 |
Class A Voting Common Stock | ||
Stockholders’ equity | ||
Common stock | $ 142,655 | $ 142,652 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Preferred stock, par value | $ 0.001 | |
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 | 24,506,647 | 21,822,015 |
Common stock, shares outstanding | 24,506,647 | 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 |
Preferred stock, shares issued | 83,968 | 0 |
Preferred stock, shares outstanding | 83,968 | 0 |
Series B Convertible Participating Preferred Stock | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | ||
Revenues | $ 94,068 | $ 57,972 |
Expenses | ||
Lease operating and gas gathering | 16,763 | 16,232 |
Production and ad valorem taxes | 5,523 | 3,287 |
Rig standby expense | 622 | 2,261 |
Depletion, depreciation, and amortization | 56,818 | 51,995 |
Accretion of asset retirement obligations | 139 | 180 |
Loss (gain) on sale of oil and gas properties | 466 | (74) |
Impairment of oil and gas properties | 33,413 | 35,570 |
General and administrative (inclusive of $1.6 million and $0.4 million of stock-based compensation) | 12,626 | 11,767 |
Acquisition costs | 3,202 | |
Other | (63) | 1,261 |
Total expenses | 129,509 | 122,479 |
Loss from operations | (35,441) | (64,507) |
Other income (expense) | ||
Interest expense | (20,769) | (22,840) |
Gain on redemption of bonds | 28,480 | |
Amortization of finance costs | (5,302) | (6,743) |
Unrealized gain on warrants | 3,088 | 568 |
Loss on derivative financial instruments | (14,080) | (8,672) |
Total other expense, net | (37,063) | (9,207) |
Loss before income taxes | (72,504) | (73,714) |
Income tax benefit (expense) | 29,019 | (24,986) |
Net loss | (43,485) | (98,700) |
Preferred stock dividends | (3,968) | |
Net loss attributable to common stockholders | $ (47,453) | $ (98,700) |
Net loss per common share | ||
Basic | $ (2.13) | $ (12.17) |
Diluted | $ (2.13) | $ (12.17) |
Weighted Average Shares Outstanding | ||
Basic | 22,252,149 | 8,106,931 |
Diluted | 22,252,149 | 8,106,931 |
Oil sales | ||
Revenues | ||
Revenues | $ 80,505 | $ 46,954 |
Natural gas sales | ||
Revenues | ||
Revenues | 6,477 | 7,165 |
Natural gas liquid sales | ||
Revenues | ||
Revenues | $ 7,086 | $ 3,853 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Paranthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
Stock-based compensation | $ 1,629 | $ 448 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Series A-1 Preferred Stock | Series B Preferred Stock | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive loss |
Beginning balance at Dec. 31, 2015 | $ 180,497 | $ 142,638 | $ 10,270 | $ 28,349 | $ (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 | (98,700) | (98,700) | |||||
Ending balance at Dec. 31, 2016 | 159,561 | $ 142,652 | 87,260 | (70,351) | |||
Ending balance (in shares) at Dec. 31, 2016 | 21,822,015 | ||||||
Shares issued for asset acquisition | 10,795 | $ 3 | 10,792 | ||||
Shares issued for asset acquisition (in shares) | 5,400 | 2,684,632 | |||||
Conversion of Series A-2 Preferred | 75,504 | 75,504 | |||||
Conversion of Series A-2 Preferred (in shares) | 76,577 | ||||||
Conversion of Series B Preferred | $ 3 | $ (3) | |||||
Conversion of Series B Preferred (in shares) | 2,684,632 | (2,684,632) | |||||
Payment-in-kind dividends (in shares) | 1,991 | ||||||
Stock-based compensation | 1,315 | 1,315 | |||||
Net loss | (43,485) | (43,485) | |||||
Ending balance at Dec. 31, 2017 | $ 203,690 | $ 142,655 | $ 174,871 | $ (113,836) | |||
Ending balance (in shares) at Dec. 31, 2017 | 24,506,647 | 83,968 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (43,485) | $ (98,700) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Loss on disposal of oil and gas properties | 35 | |
Accretion of asset retirement obligations | 139 | 180 |
Depletion, depreciation, and amortization | 56,818 | 51,995 |
Stock-based compensation | 1,629 | 448 |
Deferred taxes | (29,191) | 19,588 |
Gain on disposal of bonds | (28,480) | |
Losses on derivative financial instruments | 14,080 | 8,672 |
Settlements of derivative financial instruments | 5,207 | 29,790 |
Impairment of oil and gas properties | 33,413 | 35,570 |
Non-cash interest expense | 4,571 | 7,581 |
Gain on warrants | (3,088) | (568) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6,851) | 234 |
Prepaid expenses and other assets | 833 | (1,856) |
Accounts payable and accrued expenses | 9,371 | (220) |
Net cash provided by operating activities | 43,446 | 24,269 |
Cash flows from investing activities | ||
Acquisition of oil and gas properties | (113,726) | (4,340) |
Development of oil and gas properties | (81,875) | (39,382) |
Proceeds from sales of oil and gas properties | 16,174 | |
Purchases of other property and equipment | (13,142) | (233) |
Net cash used in investing activities | (208,743) | (27,781) |
Cash flows from financing activities | ||
Proceeds from borrowings and related party borrowings | 123,968 | 72,063 |
Payments on borrowings and related party borrowings | (34,017) | (134,697) |
Proceeds from sale of common stock, net of offering costs | 72,807 | |
Proceeds from sale of preferred stock | 77,800 | |
Cost to issue equity | (3,296) | |
Payments of debt issuance costs | (2,685) | (4,912) |
Changes in other notes payable | (3) | (3) |
Net cash provided by financing activities | 161,767 | 5,258 |
(Decrease) increase in cash and cash equivalents | (3,530) | 1,746 |
Cash and cash equivalents, beginning of the period | 6,068 | 4,322 |
Cash and cash equivalents, end of the period | 2,538 | 6,068 |
Supplemental information: | ||
Cash paid for taxes | 2,474 | 1,820 |
Cash paid for interest expense | 20,389 | 23,691 |
Non-cash investing and financing activities: | ||
Asset retirement obligation | 2,827 | (24) |
Increase in liabilities for capital expenditures | 8,379 | 2,666 |
Cost to issue equity included in accounts payable | 1,000 | |
Preferred Stock | ||
Non-cash investing and financing activities: | ||
Stock issued for asset/business acquisition | $ 10,795 | |
Common Stock | ||
Non-cash investing and financing activities: | ||
Stock issued for asset/business acquisition | $ 5,500 |
Nature of Business and Presenta
Nature of Business and Presentation | 12 Months Ended |
Dec. 31, 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 (“Class A 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. The majority of the activities of the Predecessor was carried out through LRAI. Unless the context otherwise requires, references 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. Principles of Reporting and Consolidation The consolidated financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Lonestar and entities in which we hold a controlling financial interest. Undivided interests in oil and gas joint ventures are consolidated on a proportionate basis. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. Management evaluates its estimates and related assumptions regularly, including those related to proved reserves, the value of properties and equipment, AROs, income taxes, and fair values. Changes in facts and circumstances or additional information may result in revised estimates, actual results may differ from these estimates. Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation, with no effect on the previously reported results of operations. Cash Equivalents The Company considers all highly-liquid investments with original maturities of three months or less when purchased to be cash equivalents. Concentrations and Credit Risk The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with reputable financial institutions. At times, the balances deposited may exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company has not incurred any losses related to amounts in excess of FDIC limits. Substantially all of the Company’s accounts receivable are due from either purchasers of oil, NGL and natural gas or working interest partners in oil and natural gas wells for which a subsidiary of the Company serves as the operator. Generally, operators of oil and natural gas properties have the right to offset future revenues against unpaid charges related to operated wells. The Company’s receivables are generally unsecured. Oil, NGL and natural gas revenues from Vitol Inc., Shell Trading (US) Company, Texla Energy Management, Inc., Trafigura AG, and NGL Crude Logistics LLC for the year ended December 31, 2017, represented 35%, 20%, 16%, 14%, and 10%, respectively, of total revenues. Oil, NGL and natural gas revenues from Shell Trading (US) Company, Texla Energy Management, Inc., Trafigura AG, and BP Products North America LLC for the year ended December 31, 2016, represented 40%, 21%, 18% and 10%, respectively, of total revenues. Accounts receivable relating to oil, NGL and natural gas sales from Vitol Inc., Shell Trading (US) Company, and NGL Crude Logistics LLC represented 59%, 19% and 17%, respectively, of total receivables at December 31, 2017. Accounts receivable relating to oil, NGL and natural gas sales from Shell Trading, Trafigura AG and Texla Energy Management, Inc. represented 49%, 30% and 13%, respectively, of total receivables at December 31, 2016. Oil and Natural Gas Properties The Company uses the successful efforts method of accounting to account for its oil and natural gas properties. Under this method, costs of acquiring properties, costs of drilling successful exploration wells, and development costs are capitalized. The costs of exploratory wells are initially capitalized pending a determination of whether proved reserves have been found. At the completion of drilling activities, the costs of exploratory wells remain capitalized if a determination is made that proved reserves have been found. If no proved reserves have been found, the costs of each of the related exploratory wells are charged to expense. In some cases, a determination of proved reserves cannot be made at the completion of drilling, requiring additional testing and evaluation of the wells. The Company’s policy is to expense the costs of such exploratory wells if a determination of proved reserves has not been made within a 12-month period after drilling is complete. As of December 31, 2017, the Company did not have any capitalized exploratory well costs that were pending determination of proved reserves. All costs related to development wells, including related production equipment and lease acquisition costs, are capitalized when incurred, whether productive or nonproductive. Capitalized costs attributed to the proved properties are subject to depreciation and depletion. Depreciation and depletion of the cost of oil and gas properties is calculated using the units-of-production method aggregating properties on a field basis. For leasehold acquisition costs and the cost to acquire proved properties, the reserve base used to calculate depreciation and depletion is the sum of proved developed reserves and proved undeveloped reserves. For development costs, the reserve base used to calculate depletion and depreciation is proved developed reserves only. Unproved properties consist of costs incurred to acquire unproved leases. Unproved lease acquisition costs are capitalized until the leases expire or when the Company specifically identifies leases that will revert to the lessor, at which time the Company expenses the associated unproved lease acquisition costs. The expensing of the unproved lease acquisition costs is recorded as an impairment of oil and gas properties in the consolidated statement of operations, as applicable. Unproved oil and gas property costs are transferred to proven oil and gas properties if the properties are subsequently determined to be productive or are assigned proved reserves. Unproved oil and gas properties are assessed periodically for impairment based on remaining lease terms, drilling results, reservoir performance, future plans to develop acreage, and other relevant factors. On the sale or retirement of a complete or partial unit of a proved property, the cost and related accumulated depreciation, depletion, and amortization are eliminated from the property accounts, and any gain or loss is recognized. Other Property and Equipment Other property and equipment, consisting primarily of office, transportation and computer equipment, as well as our new corporate headquarters, is carried at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, ranging from 3 to 5 years, with the exception of our corporate headquarters, which is 30 years. Major renewals and improvements are capitalized, while expenditures for maintenance and repairs are expensed as incurred. Upon sale or abandonment, the cost of the equipment and related accumulated depreciation are removed from the accounts, and any gain or loss is recognized. Impairment of Long-Lived Assets The carrying value of the oil and gas properties and other related property and equipment is periodically evaluated under the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360, Property, Plant, and Equipment Under ASC 360, the Company evaluates impairment of proved and unproved oil and gas properties on an area basis. On this basis, certain fields may be impaired because they are not expected to recover their entire carrying value from future net cash flows. As a result of this evaluation, the Company recorded impairment of unproved oil and gas properties of approximately $28.6 million and $4.8 million for the years ended December 31, 2017 and 2016, respectively, and impairment of proven oil and gas properties of $4.8 million and $30.8 million for the years ended December 31, 2017 and 2016, respectively. If pricing declines, it is reasonably likely that the Company may have to record impairment of its oil and gas properties subsequent to December 31, 2017. Asset Retirement Obligations The Company accounts for asset retirement obligations under ASC 410, Asset Retirement and Environmental Obligations Asset Retirement Obligations Revenue Recognition The Company recognizes revenue when it is realized or realizable and earned. Revenues are considered realized or realizable and earned when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the seller’s price to the buyer is fixed or determinable and (iv) collectability is reasonably assured. The Company follows the sales method of accounting for natural gas revenue, whereby revenue is recorded based on the Company’s share of volume sold, regardless of whether the Company has taken its proportional share of volume produced. A receivable or liability is recognized only to the extent that the Company has an imbalance on a specific property greater than the expected remaining proved reserves. There were no imbalances at December 31, 2017 or 2016. Fair Value of Financial Instruments In accordance with the reporting requirements of ASC 825, Financial Instruments Fair Value Measurements Income Taxes The Company follows the asset and liability method in accounting for income taxes in accordance with ASC 740, Income Taxes Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company periodically evaluates the realizable tax benefits of deferred tax assets and records a valuation allowance, if required, based on an estimate of the amount of deferred tax assets the Company believes does not meet the more likely than not criteria of being realized. In certain circumstances, the deferred tax asset may exceed the amount permissible to be used under the tax law, for example, a net operating loss carryforward. In such cases it is appropriate to write-off the excess net operating loss. At December 31, 2016, the Company wrote off $141.7 million of its net operating loss carryforward. See Note 10, Income Taxes The Company evaluates uncertain tax positions, which requires significant judgments and estimates regarding the recoverability of deferred tax assets, the likelihood of the outcome of examinations of tax positions that may or may not be currently under review, and potential scenarios involving settlements of such matters. Changes in these estimates could materially impact the consolidated financial statements. No liability for material uncertain tax positions existed as of December 31, 2017 or 2016. Share-Based Payments The Company accounts for equity-based awards in accordance with ASC 718, Compensation-Stock Compensation Recently Issued Accounting Pronouncements Business Combinations. In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-01, (“ASU 2017-01”) 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. Effective January 1, 2018, the Company adopted ASU 2017-01, which will not have a material impact on the Company’s consolidated financial statements. Leases. In February 2016, the FASB issued ASU 2016-02, (“ASU 2016-02”), 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. ASU 2016-02 is effective for the annual period beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. Entities must adopt the standard using a modified retrospective transition and apply the guidance to the earliest comparative period presented, with certain practical expedients that entities may elect to apply. Management is currently assessing the impact the adoption of ASU 2016-02 will have on our consolidated financial statements. Revenue Recognition. In May 2014, the FASB issued ASU 2014-09, (“ASU 2014-09”). The objective of ASU 2014-09 is greater consistency and comparability across industries by using a five-step model to recognize revenue from customer contracts. Effective January 1, 2018, the Company adopted ASU 2014-09, using the modified retrospective method applied to contracts that were not completed as of January 1, 2018. We have reviewed various contracts that represent our material revenue streams and determined that there was no material impact to our financial position, results of operations or liquidity. Upon adoption of this ASU, we were not required to record a cumulative adjustment to beginning retained earnings. The Company continues to review its implementation documentation and its evaluation of the new disclosure requirements is ongoing. |
Restatement of Previously Issue
Restatement of Previously Issued Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Restatement of Previously Issued Financial Statements | 2. Restatement of Previously Issued Financial Statements As previously disclosed, we determined that instead of using updated oil and natural gas reserve estimates to calculate depreciation, depletion and amortization (“DD&A”) expense calculations looking back to the beginning of the applicable fiscal year, we instead should have used the updated oil and natural gas reserve estimates to calculate DD&A looking back to the beginning of the applicable current quarter. This methodology resulted in the understatement of DD&A expense and the overstatement of oil and gas properties, as well as the related income tax effects. We concluded that the impact of applying the correct oil and natural gas reserve revision methodology to the DD&A calculation was materially different from our previously reported results under our historical practice. As a result, we are restating our consolidated financial statements for the periods impacted. The table below sets forth the consolidated statements of operations, including the balances originally reported, corrections and the as restated balances for each fiscal year: Year Ended December 31, 2017 December 31, 2016 (In thousands except per share data) As Reported Correction As Restated As Reported Correction As Restated Depreciation, depletion and amortization $ 52,718 $ 4,100 $ 56,818 $ 46,888 $ 5,107 $ 51,995 Impairment of oil and gas properties 33,413 — 33,413 33,893 1,677 35,570 Total expenses 125,409 4,100 129,509 115,695 6,784 122,479 Loss from operations (31,341 ) (4,100 ) (35,441 ) (57,723 ) (6,784 ) (64,507 ) Loss before income taxes (68,404 ) (4,100 ) (72,504 ) (66,930 ) (6,784 ) (73,714 ) Income tax benefit (expense) 29,741 (722 ) 29,019 (27,405 ) 2,419 (24,986 ) Net loss attributable to common stockholders (42,631 ) (4,822 ) (47,453 ) (94,335 ) (4,365 ) (98,700 ) Net loss per common share Basic $ (1.92 ) $ (0.21 ) $ (2.13 ) $ (11.64 ) $ (0.53 ) $ (12.17 ) Diluted $ (1.92 ) $ (0.21 ) $ (2.13 ) $ (11.64 ) $ (0.53 ) $ (12.17 ) The table below sets forth the consolidated balance sheets, including the balances originally reported, corrections and the as restated balances for each fiscal year: December 31, 2017 December 31, 2016 (In thousands) As Reported Correction As Restated As Reported Correction As Restated Assets Oil and gas properties, net $ 571,163 $ (14,992 ) $ 556,171 $ 439,228 $ (10,892 ) $ 428,336 Total assets 606,800 (14,992 ) 591,808 459,109 (10,892 ) 448,217 Liabilities and Stockholders' equity Deferred tax liability $ 8,105 $ (3,336 ) $ 4,769 $ 38,020 $ (4,060 ) $ 33,960 Total liabilities 391,454 (3,336 ) 388,118 292,716 (4,060 ) 288,656 Accumulated deficit (102,180 ) (11,656 ) (113,836 ) (63,517 ) (6,834 ) (70,351 ) Total stockholders' equity 215,346 (11,656 ) 203,690 166,395 (6,834 ) 159,561 The table below sets forth the consolidated statements of cash flows from operating activities, including the balances originally reported, corrections and the as restated balances for each fiscal year: Year Ended December 31, 2017 December 31, 2016 (In thousands) As Reported Correction As Restated As Reported Correction As Restated Cash flows from operating activities: Net loss $ (38,663 ) $ (4,822 ) $ (43,485 ) $ (94,335 ) $ (4,365 ) $ (98,700 ) Depreciation, depletion and amortization 52,718 4,100 56,818 46,888 5,107 51,995 Deferred taxes (29,913 ) 722 (29,191 ) 22,007 (2,419 ) 19,588 Impairment of oil and gas properties 33,413 — 33,413 33,893 1,677 35,570 Net cash provided by operating activities 43,446 — 43,446 24,269 — 24,269 The restatement had no impact on cash flows from investing activities or financing activities. The table below sets forth the consolidated statements of shareholders' equity, including the balances originally reported, corrections and the as restated balances for each fiscal year: Total Accumulated Stockholders' (In thousands) Deficit Equity Balance at December 31, 2015, as reported $ 30,818 $ 182,966 Correction (2,469 ) (2,469 ) Balance at December 31, 2015, as restated 28,349 180,497 Balance at December 31, 2016, as reported $ (63,517 ) $ 166,395 Correction (6,834 ) (6,834 ) Balance at December 31, 2016, as restated (70,351 ) 159,561 Balance at December 31, 2017, as reported $ (102,180 ) $ 215,346 Correction (11,656 ) (11,656 ) Balance at December 31, 2017, as restated (113,836 ) 203,690 In addition to the restated consolidated financial statements, the information contained in Notes 3,6,10 and 13 has been restated. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 3. Acquisitions and Divestitures New Corporate Headquarters On August 2, 2017, the Company closed on the purchase of an office building in Fort Worth, Texas, with an acquisition price approximating $10 million. Battlecat Acquisition 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”). 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 805. Acquisition-related costs of approximately $1.5 million were charged to Acquisition Costs in the Consolidated Statements of Operations. The effective date of the acquisition was April 1, 2017. Marquis Acquisition 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”). 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 805. Acquisition-related costs of approximately $1.2 million were charged to Acquisition Costs in the Consolidated Statements of Operations. The effective date of the acquisition was January 1, 2017. Pro Forma Operating Results (unaudited) The following unaudited pro forma combined financial information for the years ended December 31, 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 including preferred dividends. • The borrowing of approximately $24 million on our Credit Facility to finance a portion of the Battlecat Acquisition and the Marquis Acquisition and the related adjustment to interest expense. • 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. • Conversion of Series B Preferred Stock to Class A voting common stock on November 3, 2017. Year Ended December 31, In thousands 2017 2016 (Restated) (Restated) Pro forma total revenues $ 107,853 $ 91,532 Pro forma net loss attributable to common stockholders (53,310 ) (50,458 ) Pro forma net loss per common share, basic and diluted (2.40 ) (6.22 ) 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 Company has included in its Consolidated Statements of Operations, revenues of $2.20 million and $13.2 million and direct operating expenses of $0.6 million and $3.81 million for the period from June 15, 2017 to December 31, 2017 related to the properties acquired in the Battlecat and Marquis transactions, respectively. Juneau Transaction On August 2, 2016, the Company entered into a purchase and sale agreement with Juneau Energy, LLC (“Juneau”) whereby the Company obtained an undivided 50% of Juneau’s interest in two producing wells and each well’s respective oil and gas leases covering approximately 1,300 net mineral acres located in Brazos County, Texas. The total consideration paid by the Company was $5.5 million payable in 500,227 shares of the Company’s Class A voting common stock. |
Commodity Price Risk Activities
Commodity Price Risk Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Commodity Price Risk Activities | 4. Commodity Price Risk Activities The Company has implemented a strategy to reduce the effects of volatility of oil and natural gas prices on the Company’s results of operations by securing fixed-price contracts for a portion of its expected sales volumes. Inherent in the Company’s fixed price contracts, are certain business risks, including market risk and credit risk. Market risk is the risk that the price of oil and natural gas will change, either favorably or unfavorably, in response to changing market conditions. Credit risk is the risk of loss from nonperformance by the Company’s counterparty to a contract. The Company does not currently require collateral from any of its counterparties nor does its counterparties require collateral from the Company. At December 31, 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 are included in the Consolidated Statements of Operations. As of December 31, 2017, the following derivative transactions were outstanding: Instrument Total Volume Settlement Period Fixed Price 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 509,000 Bbl January – December 2018 50.17 Oil – WTI Fixed Price Swap 508,900 Bbl January – December 2019 50.40 Oil – WTI Fixed Price Swap 560,700 Bbl January – December 2019 48.04 Oil – WTI Fixed Price Swap 401,500 Bbl January – December 2019 50.90 Oil – WTI Fixed Price Swap 203,600 Bbl January – June 2020 48.90 Natural Gas – Henry Hub NYMEX Fixed Price Swap 1,825,000 MMBtu January – December 2018 3.09 Instrument Total Volume Settlement Period Puts Calls Oil – 2 Way Collar 182,500 Bbl January – December 2018 $ 50.00 $ 59.45 The above oil derivative contracts aggregate to 1,713,500 Bbls or 4,695 Bbls/d for 2018; 1,471,100 Bbls or 4,030 Bbls/d for 2019; and 203,600 Bbls or 1,119 Bbls/d for 2020. The above natural gas derivative contract equates to 5,000 MMBtu/d for 2018. All derivative contracts are carried at their fair value on the balance sheet and all changes in value are recorded in the Consolidated Statements of Operations. As of December 31, 2017 and 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 | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements 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. Non-recurring fair value measurements include certain nonfinancial assets and liabilities as may be acquired in a business combination and thereby measured at fair value; impaired oil and natural gas property assessments; warrants issued in equity offerings and the initial recognition of asset retirement obligations for which fair value is used. These estimates are derived from historical costs as well as management’s expectation of future cost environments. As there is no corroborating market activity to support the assumptions used, the Company has designated these estimates as Level 3. The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2017 and 2016, for each fair value hierarchy level: Fair Value Measurements Using In thousands Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total December 31, 2017 Assets: Commodity derivatives $ — $ 472 $ — $ 472 Liabilities: Commodity derivatives — (22,138 ) — (22,138 ) Equity warrant liability — — (508 ) (508 ) Equity warrant liability - related parties — — (963 ) (963 ) Stock appreciation rights — — (314 ) (314 ) Total $ — $ (21,666 ) $ (1,785 ) $ (23,451 ) December 31, 2016 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 liability for the year ended December 31, 2017. In thousands Equity Warrant Liability Stock Appreciation Rights Total Balance at December 31, 2016 $ (4,559 ) $ — $ (4,559 ) Purchases, sales, issuances and settlements (net) — (72 ) (72 ) Unrealized gains/(losses) 3,088 (242 ) 2,846 Balance at December 31, 2017 $ (1,471 ) $ (314 ) $ (1,785 ) Long-Lived Assets Due to declines in commodity prices and estimated reserves over the last three years, there were indications that the carrying value of certain oil and natural gas properties may be impaired and undiscounted future cash flows attributed to these assets indicated their carrying amounts were not expected to be recovered. Their fair value was measured using an income approach based upon internal estimates of future production levels, prices, drilling and operating costs and discount rates, which are Level 3 inputs. We also considered the potential sale of certain of these properties. During 2017, we impaired $4.8 million of proved undeveloped leasehold costs in Wilson County. During 2016, we impaired $21.1 million of proved undeveloped leasehold costs in Texas, in connection with the sale of the Company’s conventional oil and natural gas assets. Other Fair Value Measurements 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 $158.9 million as of December 31, 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. The Company’s other Level 3 financial liabilities measured at fair value consist of the warrant liability as of December 31, 2017. |
Oil and Gas Properties
Oil and Gas Properties | 12 Months Ended |
Dec. 31, 2017 | |
Extractive Industries [Abstract] | |
Oil and Gas Properties | 6. Oil and Gas Properties A summary of oil and gas properties follows: December 31, In thousands 2017 2016 (Restated) (Restated) Proved properties and equipment $ 750,226 $ 538,695 Unproved properties 78,655 72,584 Less accumulated depletion and impairment (272,710 ) (182,943 ) Total oil and gas properties $ 556,171 $ 428,336 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 7. Asset Retirement Obligations Pursuant to ASC 410 , Asset Retirement Obligations, The liability has been accreted to its present value as of December 31, 2017. The Company evaluated its wells and has determined a range of abandonment dates through December 2066. The following represents a reconciliation of the asset retirement obligations: Year Ended December 31, In thousands 2017 2016 Asset retirement obligations at beginning of period $ 2,683 $ 7,488 Wells drilled during the year 220 154 Wells acquired during the year 2,797 28 Wells sold during the year — (4,780 ) Accretion of discount 139 180 Revisions of previous estimates (1) (190 ) (205 ) Wells plugged and abandoned during the year — (182 ) Asset retirement obligations at end of period $ 5,649 $ 2,683 (1) Revisions of previous estimates during the year ended December 31, 2017 are primarily attributable to changes in estimates of the timing of future costs for oilfield services required to plug and abandon wells. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities Accrued liabilities consist of the following: Year Ended December 31, In thousands 2017 2016 Bonus payable $ 2,250 $ 2,155 Payroll payable 18 1 Accrued interest - 8.750% Senior Notes 2,768 2,924 Accrued interest - other 1,015 523 Accrued rent 156 298 Accrued well costs 8,386 3,366 Accrued severance, property, federal and franchise taxes 115 431 Accrued federal income tax 1,147 — Other 728 249 Total accrued liabilities $ 16,583 $ 9,947 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt Long-term debt consists of the following: December 31, In thousands 2017 2016 Credit Facility $ 142,080 $ 43,500 Second Lien Notes — 11,367 8.750% Senior Notes 151,848 151,848 Less unamortized discount on 8.750% Senior Notes (949 ) (1,708 ) Less deferred financing costs on 8.750% Senior Notes (474 ) (851 ) Less deferred financing costs on Second Lien Notes — (316 ) Mortgage debt 7,891 — Other 759 282 Total long-term debt $ 301,155 $ 204,122 Senior Secured Credit Facility On July 28, 2015, LRAI closed a Credit Agreement for a $500 million Senior Secured Credit Facility with Citibank, N.A., as administrative agent, and other lenders party thereto (as amended, supplemented or modified from time to time, the “Credit Facility”). The Credit Facility had a maturity date of October 16, 2018 as of December 31, 2017. Consequent to redeeming the 8.750% Senior Notes (as defined below) in January 2018, the Credit Facility’s maturity date was extended to July 28, 2020. Due to the Company’s ability and intent to refinance the 8.750% Notes as of December 31, 2017, the Credit Facility was classified as a long-term liability on the Consolidated Balance Sheets as of said date. See Note 16, Subsequent Events Borrowing availability was approximately $17.4 million at December 31, 2017. The Credit Facility may be used for loans and, subject to a $2.5 million sub-limit, letters of credit, and provides for a commitment fee of 0.375% to 0.5% based on the unused portion of the borrowing base under the Credit Facility. As of December 31, 2017, the borrowing base and lender commitments for the Credit Facility were $160.0 million. The borrowing base under the Credit Facility is determined semi-annually as of May 1 and November 1. On January 4, 2018, the Seventh Amendment and Limited Waiver, Borrowing Base Redetermination Agreement, and Amendment No. 7 to Credit Agreement dated January 4, 2018 reaffirmed the borrowing base at $160.0 million. This January 2018 redetermination constituted the regularly scheduled November 1 determination. See Note 16, Subsequent Events Borrowings under the 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 1.50% to 2.50% for ABR loans and from 2.50% to 3.50% for adjusted LIBO rate loans (5.13% at December 31, 2017). Subject to certain permitted liens, LRAI’s obligations under the 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 (currently 90%). The Credit Facility contains two financial covenants, as defined in the Credit Facility: (a) a maximum debt to EBITDAX ratio (discussed further below) and (b) a current ratio of not less than 1.0 to 1.0. As of December 31, 2017, the Company was in compliance with the minimum debt to EBITDAX ratio; however, the current ratio as of December 31, 2017 was approximately 0.7 to 1.0 due to low availability under the Credit Facility. Upon closing of the 11.250% Senior Notes, as defined below, in January 2018, the Credit Facility’s outstanding balance was paid down by $80.0 million, which increased the Credit Facility’s availability to a level sufficient for purposes of the current ratio. The Company obtained a limited waiver agreement for the current ratio violation from the Credit Facility’s lenders prior to issuance of the Company’s Original Report. 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 (i) increase the borrowing base from $112 million to $160 million until redetermined or adjusted in accordance with the Credit Facility, (ii) modify the maximum leverage 8.750% Senior Notes On April 4, 2014, LRAI issued, at par, $220.0 million of 8.750% Senior Unsecured Notes due April 15, 2019 (the “8.750% Senior Notes”) to U.S.-based institutional investors. On or after April 15, 2016, LRAI could 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 % The 8.750% Senior Notes has 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. In January 2018, the Company redeemed the 8.750% Senior Notes in whole using proceeds from the 11.250% Senior Notes, as defined below. See Note 16, Subsequent Events 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 December 31, 2017 and 2016, the Company had approximately $2.3 and $1.2 million, 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 $49.9 million 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 Consolidated Balance Sheets. 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 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 December 31, 2017 which resulted in a gain on the Warrants of approximately $3.1 million for the year ended December 31, 2017, which is recorded in the Consolidated Statements of Operations. 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 Credit Facility. Repurchase Facilitation Agreement On October 26, 2016, effective September 29, 2016, Lonestar Resources US, Inc. (the “Company”), by and on behalf of itself and certain of its subsidiaries, entered into an Amended and Restated Repurchase Facilitation Agreement (the “Amended and Restated Agreement”) with Seaport Global Securities LLC, a Delaware limited liability company (“Seaport Global”). Pursuant to the Amended and Restated Agreement, Seaport Global has agreed to provide the Company with financing (“Gap Financing”) from time to time in connection with the repurchase of the 8.750% Senior Notes, to be acquired by Seaport Global on the Company’s behalf in one or more open market purchases. In December 2016, LRAI repaid the Gap Financing with proceeds from the 2016 Common Stock Offering. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The current and deferred components of income tax (benefit) expense are as follows: Year Ended December 31, In thousands 2017 2016 (Restated) (Restated) Current income tax expense Federal $ 59 $ 5,057 State 113 341 Total current income tax expense 172 5,398 Deferred tax (benefit) expense Federal (29,125 ) 19,534 Foreign — 270 State (66 ) (216 ) Total deferred income tax (benefit) expense (29,191 ) 19,588 Total income tax (benefit) expense $ (29,019 ) $ 24,986 The following table provides a reconciliation of the Company’s actual income tax provision amounts from the expected income tax provision amount by applying the U.S. federal statutory corporate income tax rate of 35% for the periods indicated: Year Ended December 31, In thousands 2017 2016 (Restated) (Restated) Expected income tax benefit at statutory rate $ (25,370 ) $ (25,800 ) Permanent differences (357 ) 511 Remeasurement of deferred balances due to federal rate change (4,140 ) — Net operating loss write down — 49,608 State tax, tax effected 97 (20 ) Prior year differences 779 311 Other (28 ) 376 Actual income tax (benefit) provision $ (29,019 ) $ 24,986 The tax effects of the Company’s temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: December 31, In thousands 2017 2016 (Restated) (Restated) Deferred tax assets: Net operating loss carryforward $ 20,874 $ 20,442 Stock based compensation 1,891 2,593 Intangibles 351 682 Organizational expenses and other 2,900 3,864 Total deferred tax assets $ 26,016 $ 27,581 Deferred tax liabilities: Oil and gas properties and other property and equipment, principally due to intangible drilling costs $ (35,214 ) $ (62,712 ) Loss on derivative instruments 4,429 1,371 Other — (200 ) Net deferred tax liabilities $ (4,769 ) $ (33,960 ) The net operating loss carryforward as of December 31, 2017, approximates $99.4 million and begins to expire in 2030. On December 22, 2016, the Company completed a public offering of 13.8 million of its Class A common stock. A change of ownership, as defined under the provisions of Section 382 of the Internal Revenue Code (“IRC”) occurred on this date. A portion of our net operating loss and tax credit carryforwards will be limited in future periods. IRC Section 382 places limitations on the amount of taxable income which may be offset by tax carryforward attributes, such as net operating losses or tax credits after a change of ownership event. As a result of this ownership change, certain of our accumulated net operating losses will be subject to an annual limitation regarding their utilization against taxable income in future periods. The 2016 change creates an estimated annual utilization limit of approximately $1.0 million on our ability to utilize net operating losses generated prior to the ownership change event. Built-in gains associated with our deferred tax attributes on the date of the ownership change may increase the net operating loss utilization limit in future periods, allowing additional utilization of net operating losses generated prior to the date of the ownership change. Due to the ownership change and the resulting limitation on the utilization of net operating loss generated prior to the change, an estimated $141.7 million of the net operating loss carryforwards were written off in 2016. On June 15, 2017, the Company entered into an amended and restated purchase agreement with Chambers Energy Capital III, LP (“Chambers”) where the Company closed transactions issuing Chambers 5,400 shares of Series A-1 Preferred Stock and 74,600 shares of Series A-2 Preferred Stock. These transactions created an additional change of ownership under the provision of Section 382 of the IRC. The 2017 change creates an additional estimated annual utilization limit of approximately $0.8 million on our ability to utilize net operating losses generated subsequent to the 2016 change in ownership, but prior to the June, 2017 change in ownership. If the Company were to experience another ownership change in future periods, the net operating loss carryforwards may be subject to additional utilization limits The Company files income tax returns in the United States federal jurisdiction and in various state jurisdictions. At December 31, 2017, there are no current examinations of federal or state jurisdictions in progress. The Company’s income tax returns related to fiscal years ended December 31, 2010 through 2017 remain open to possible examination by the tax authorities. The Company has not recorded any interest or penalties associated with uncertain tax positions. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% under the Tax Cuts and Jobs Act (the “Act”), the Company revalued its deferred tax assets and liabilities at December 31, 2017, which resulted in a $6.3 million benefit. The corporate alternative minimum tax (“AMT”) for tax years beginning in January 1, 2018 has also been repealed. The Act provides that existing AMT credit carryovers are refundable beginning in 2018. As of December 31, 2017, the Company had AMT credit carryovers of $2.4 million that are expected to be fully refunded by 2022. The deductibility of interest expense for tax years beginning in January 1, 2018 has been limited to 30% of earnings before interest, taxes, depreciation, and amortization for four years ending 2021. Deductibility of interest expense for tax years beginning in January 1, 2022 will then be limited to 30% of earnings before interest and taxes thereafter. The Company has not yet evaluated the impact of this provision. The Act is a comprehensive bill containing other provisions, and the ultimate impact from the Act may differ from the Company’s estimates as of December 31, 2017 due to changes in the interpretations and assumptions made by the Company as well as additional regulatory guidance that may be issued. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 11. 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, 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 15, 2017, in connection with financing the Battlecat and Marquis Acquisitions, the Company issued 5,400 shares of Series A-1 Convertible Participating Preferred Stock, par value $0.001 per share (the “Series A-1 Preferred Stock”) and 74,600 shares of 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”), to Chambers Energy Capital (“Chambers”). Also, on June 15, 2017, in connection with the Battlecat and Marquis Acquisitions, the Company issued 1,184,632 and 1,500,000 shares of Series B Preferred Stock to Battlecat and Marquis, respectively (see Note 3, Acquisitions and Divestitures) Pursuant to the terms of the Chambers agreement, the Company agreed to use commercially reasonable efforts to hold a stockholder meeting (the “Stockholder Meeting”) to obtain 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 agreement (the “Stockholder Approval”). The Stockholder Meeting was held on November 3, 2017, and Stockholder Approval was obtained. As a result of the Stockholder Approval, all outstanding Series A-2 Preferred Stock was converted to Series A-1 Preferred Stock. Also, on November 3, 2017, in accordance with the terms of the Series B Certificate of Designations, all of the outstanding shares of the Company’s Series B Preferred Stock were converted on a one-for-one basis into shares of the Company’s Class A voting common stock. After the Chambers agreement closing, and for so long as the Approved Holders (as defined) 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, 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 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. The Series A-1 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 the series initially has a stated value of $1,000 per share. Holders of Series A-1 Preferred Stock are entitled to vote with holders of Class A voting common stock on an as-converted basis. Shares of Series A-1 Preferred Stock are convertible into shares of Class A voting common stock at the option of the holders of such Series A-1 Preferred Stock 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”). The Company has 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. Holders of Series A Preferred Stock are 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 (collectively, the “PIK Option”). 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. In addition to dividends rights described above, holders of the Series A Preferred Stock are 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. For the third and fourth quarters of 2017, the Company elected the PIK Option for the Class A Preferred Stock dividend payment, which resulted in the issuance of 1,991 additional shares of Series A-1 Preferred Stock and 1,977 additional shares of Series A-2 Preferred Stock, which were subsequently converted to shares of Series A-1 Preferred Stock during the fourth quarter of 2017. Common Stock Issuances On November 3, 2017, as described above, the Company issued 2,684,632 shares of Class A voting common stock on a one-for-one basis in exchange for all of the of the Company’s outstanding Series B Preferred Stock. On December 22, 2016, the Company completed the 2016 Common Stock Offering of 13.8 million shares of its Class A voting common stock at a price of $5.75 per share, for proceeds of approximately $71.8 million, net of offering costs. The Company used the net proceeds from the stock offering to repay borrowings under its Credit Facility, Second Lien Notes and to repay the debt owed under the Facilitation Agreement with Seaport Global. On August 2, 2016, the Company entered into a purchase and sale agreement with Juneau Energy, LLC (“Juneau”) whereby the Company obtained an undivided 50% of Juneau’s interest in two producing wells and each well’s respective oil and gas leases covering approximately 1,300 net mineral acres located in Brazos County, Texas. The total consideration paid by the Company was $5.5 million payable in 500,227 shares of the Company’s Class A voting common stock. In July 2016, the Company issued 2,500 shares of Class B non-voting common stock to Butterfly Flaps, Ltd., a Company in which Dr. Christopher Rowland (a director of the Company) owns an interest. The shares were issued for services to be performed by Butterfly Flaps, Ltd. in 2017. See Note 14, Related Party Activities |
Stock-Based Compensation and Ot
Stock-Based Compensation and Other Incentives | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation and Other Incentives | 12. Stock-Based Compensation and Other Incentives Determining Fair Value of Stock Options In determining the fair value of stock option grants, the Company utilized the following assumptions: Valuation and Amortization Method. The Company estimates the fair value of stock option awards on the date of grant using the Black-Scholes-Merton valuation model. The fair value of all awards is expensed using the “graded-vesting method.” Expected Life. The expected life of stock options granted represents the period of time that stock options are expected, on average, to be outstanding. The Company determined the expected life to be 3.5 years, for all stock options issued with three-year vesting periods and four-year grant expirations. Expected Volatility. Using the Black-Scholes-Merton valuation model, the Company estimates the volatility of Predecessor’s common shares at the beginning of the quarter in which the stock option is granted. The volatility of 58.6% is based on weighted average historical movements of Predecessor’s common share price on the ASX over a period that approximates the expected life. Risk-Free Interest Rate. The Company utilizes a risk-free interest rate equal to the rate of U.S. Treasury zero-coupon issues as of the date of grant with a term equivalent to the stock option’s expected life. Expected Dividend Yield. The Predecessor and the Successor have not paid any cash dividends on its common shares, and the Successor does not anticipate paying any cash dividends in the foreseeable future. Consequently, a dividend yield of zero is utilized in the Black-Scholes-Merton valuation model. Expected Forfeitures. The Company has experienced limited forfeitures and therefore has not discounted expenses for forfeitures at the reporting date. Stock Option Activity For the year ended December 31, 2017, no stock options were exercised. The following tables summarize certain information related to outstanding stock options under the Lonestar Resources Limited 2012 Employee Share Option Plan and the Lonestar Resources US Inc. 2016 Incentive Plan, which replaced the Lonestar Resources Limited 2012 Employee Share Option Plan following the Reorganization. The number of shares that may be issued under the 2016 Incentive Plan is 2.2 million shares. The number of shares available for issuance under the 2016 Incentive Plan is approximately 0.8 million shares. Shares Weighted Average Exercise Price Per Share Weighted Remaining Contractual Term (in years) Outstanding at December 31, 2016 191,750 $ 15.00 0.25 Options vested and exercisable at December 31, 2016 191,750 15.00 0.25 Granted — — — Exercised — — — Canceled/expired (116,750 ) — — Forfeited (75,000 ) 20.00 — Outstanding at December 31, 2017 — $ — — Options vested and exercisable at December 31, 2017 — $ — — Restricted Stock Units In February 2017, the Company granted awards of restricted stock units (“RSUs”) covering 612,000 shares to certain of its employees. In August 2017, 100,000 units were issued to the Company’s chairman of the board of directors. In October 2017, 28,409 units were issued to the Company’s internal general counsel. 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 RSUs 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 740,409 3.0 Canceled/expired — — Forfeited (11,500 ) 2.2 Outstanding at December 31, 2017 728,909 2.2 RSUs vested at December 31, 2017 — — Shares Weighted Average Fair Value per Share Weighted Average Remaining Contractual Term (in years) Outstanding non-vested RSUs at December 31, 2016 — $ — — Granted 740,409 5.57 3.0 Vested — — — Forfeited (11,500 ) 6.00 2.2 Outstanding non-vested RSUs at December 31, 2017 728,909 $ 5.56 2.2 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. The SAR liability is approximately $0.3 million for the year ended December 31, 2017. 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 December 31, 2017 690,000 $ 7.20 4.3 SARs vested and exercisable at December 31, 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 6.00 7.20 5.0 Vested — — — — Forfeited (10,000 ) 5.17 7.20 4.3 Outstanding non-vested SARs at December 31, 2017 690,000 $ 3.97 $ 7.20 4.3 Stock-Based Compensation Expense For the year ended December 31, 2017 the Company recorded stock-based compensation expense for RSUs and SARs of approximately $1,315 and $314 thousand, respectively. For the year ended 2016, the Company recorded stock-based compensation expense for stock options granted using the fair-value method of approximately $448 thousand. As of December 31, 2017, the Company had approximately $2,725 and $629 thousand of unrecognized compensation cost related to unvested RSUs and SARs, respectively. As all outstanding stock options expired December 31, 2017, no unrecognized compensation cost existed at December 31, 2017. 401(k) Plan The Company offers a 401(k) plan to which employees may contribute earnings subject to IRS limitations. The Company matches 100% of an employee’s contribution, up to 4% of compensation, as defined by the plan, which is vested immediately. During 2017 and 2016, the Company’s matching contributions to the 401(k) plan were approximately $147 and $155 thousand, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings Per Share 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 to include warrants, equity compensation awards, and preferred equity shares under the as-converted method. 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 common stock for the period. When a loss from operations exists, all potentially dilutive common shares outstanding are anti-dilutive and therefore excluded from the calculation of diluted weighted average shares outstanding. There is no dilutive effect for the years ended December 31, 2017 and 2016 as the Company reported a loss from operations for those periods. The following table presents unaudited earnings per share of Lonestar Resources US Inc., assuming that the 1-for-2 reverse stock split upon Reorganization had occurred at the beginning of the year ended December 31, 2016: Year Ended December 31, 2017 2016 Net loss per share of Class A voting common stock: Basic $ (2.13 ) $ (12.17 ) Diluted (2.13 ) (12.17 ) Weighted average Class A voting common stock outstanding: Basic 22,252,149 8,106,931 Diluted 22,252,149 8,106,931 |
Related Party Activities
Related Party Activities | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Activities | 14. Related Party Activities Leucadia On August 2, 2016, LRAI and the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Juneau, as initial purchaser, 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 $25.0 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 $21.0 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 $1.0 million fee, which was recorded as a reduction to additional paid-in capital. 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 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 Form S-3 registration statement was filed with the Securities and Exchange Commission on November 7, 2017, and is effective. The Company has also granted EF Realisation certain piggyback and demand registration rights. Amendment of Registration Rights Agreement In connection with the consummation of the Battlecat Acquisition, the Marquis Acquisition and the Purchase Agreement, 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 $1,015 and $655 thousand for the years ended December 31, 2017 and 2016, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Litigation The Company is subject to certain claims and litigation arising in the normal course of business. In the opinion of management, the outcome of such matters will not have a materially adverse effect on the consolidated results of operations or financial position of the Company. Environmental Remediation Various federal, state, and local laws and regulations covering the discharge of materials into the environment, or otherwise relating to the protection of the environment, may affect the Company’s operations and the costs of its oil and gas exploration, development, and production operations. The Company does not anticipate that it will be required in the near future to expend significant amounts in relation to the consolidated financial statements taken as a whole by reason of environmental laws and regulations, and appropriately no reserves have been recorded. Lease Agreement The Company entered into an operating lease agreement for its corporate office in October 2014 which will expire in October 2021. Future minimum annual lease payments are as follows: In thousands Future Minimum Rentals 2018 $ 412 2019 422 2020 432 2021 368 Total minimum lease payments $ 1,634 Rent expense was approximately $439 and $375 thousand for the years ended December 31, 2017 and 2016, respectively. The Company relocated its corporate office to an owned building in February 2018 but will continue to be responsible for the minimum annual lease payments noted above regardless of subrental income, if any, the Company will receive from the property going forward. Significant Contracts As of December 31, 2017, the Company had one drilling rig under contract. The contract, which expires on July 19, 2018, provides for a drilling rate $18,500 per day through January 18, 2018, at which time the daily rate increases to $18,750 per day through the remainder of the term. The early termination fee equals 80% of the daily drilling rate times the number of days remaining on the contract term, which was approximately $2.7 million as of December 31, 2017. In February 2018, the Company signed an additional rig under contract to drill four wells commencing in April 2018 and provides for a drilling rate of $20,000 per day. The early termination fee equals the greater of demobilization costs or $200,000, plus $200,000 for each undrilled well. In March 2018, the Company signed a dedicated fleet contract that provides for hydraulic fracturing and wireline services at variable rates depending on the work performed. The early termination fee equals $133,000 for each of 15 scheduled wells that is not hydraulically fractured as of the date of termination. The contract expires on December 31, 2018. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events 11.250% Senior Notes On January 4, 2018, the Company issued $250.0 million of 11.250% senior notes due 2023 (the “11.250% Senior Notes”) to U.S.-based institutional investors. The net proceeds of $244.4 million were used to fully retire the 8.750% Senior Notes, which included principal, interest and a prepayment premium of approximately $162 million (see Note 9. Long-Term Debt) The 11.250% Senior Notes mature on January 1, 2023, and bear interest at the rate of 11.250% per year, payable on January 1 and July 1 of each year, beginning July 1, 2018. At any time prior to January 1, 2021, the Company may, on any one or more occasions, redeem up to 35% of the aggregate principal amount of the 11.250% Senior Notes with an amount of cash not greater than the net cash proceeds of certain equity offerings at a redemption price equal to 111.250% of the principal amounts redeemed, plus accrued and unpaid interest, provided that at least 65% of the aggregate principal amount of 11.250% Senior Notes originally issued remains outstanding immediately after such redemption and the redemption occurs within 180 days of the closing date of such equity offering. At any time prior to January 1, 2021, the Company may, on any one or more occasions, redeem all or a part of the 11.250% Senior Notes at a redemption price equal to 100% of the principal amount redeemed, plus a “make-whole” premium as of, and accrued and unpaid interest. On and after January 1, 2021, the Company may redeem the 11.250% Senior Notes, in whole or in part, plus accrued and unpaid interest, at the following redemption prices: 108.438% after January 1, 2021; 105.625% after January 1, 2022; and 100% after July 1, 2022. The indenture contains certain restrictions on the Company’s ability to incur additional debt, pay dividends on the Company’s common stock, make investments, create liens on the Company’s assets, engage in transactions with affiliates, transfer or sell assets, consolidate or merger, or sell substantially all of the Company’s assets. Credit Facility Amendment On January 4, 2018, the Company entered into the Limited Waiver, Borrowing Base Redetermination Agreement, and Amendment No. 7 to the Credit Agreement, which included the following provisions: • maintained the borrowing base of $160 million until the next redetermination date; • waived the borrowing base redetermination that would otherwise have occurred in connection with the incurrence of the 11.250% Senior Notes, and • amended certain other provisions of the Credit Facility. Extension of Credit Facility Maturity Date As a result of the redemption of the 8.750% Senior Notes, the issuance of the 11.250% Senior Notes and the existing terms of the Credit Facility, the maturity date of the Credit Facility was extended in January 2018 from October 16, 2018, to July 28, 2020. |
Nature of Business and Presen_2
Nature of Business and Presentation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Reporting and Consolidation | Principles of Reporting and Consolidation The consolidated financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Lonestar and entities in which we hold a controlling financial interest. Undivided interests in oil and gas joint ventures are consolidated on a proportionate basis. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. Management evaluates its estimates and related assumptions regularly, including those related to proved reserves, the value of properties and equipment, AROs, income taxes, and fair values. Changes in facts and circumstances or additional information may result in revised estimates, actual results may differ from these estimates. |
Reclassification | Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation, with no effect on the previously reported results of operations. |
Cash Equivalents | Cash Equivalents The Company considers all highly-liquid investments with original maturities of three months or less when purchased to be cash equivalents. |
Concentrations and Credit Risk | Concentrations and Credit Risk The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with reputable financial institutions. At times, the balances deposited may exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company has not incurred any losses related to amounts in excess of FDIC limits. Substantially all of the Company’s accounts receivable are due from either purchasers of oil, NGL and natural gas or working interest partners in oil and natural gas wells for which a subsidiary of the Company serves as the operator. Generally, operators of oil and natural gas properties have the right to offset future revenues against unpaid charges related to operated wells. The Company’s receivables are generally unsecured. Oil, NGL and natural gas revenues from Vitol Inc., Shell Trading (US) Company, Texla Energy Management, Inc., Trafigura AG, and NGL Crude Logistics LLC for the year ended December 31, 2017, represented 35%, 20%, 16%, 14%, and 10%, respectively, of total revenues. Oil, NGL and natural gas revenues from Shell Trading (US) Company, Texla Energy Management, Inc., Trafigura AG, and BP Products North America LLC for the year ended December 31, 2016, represented 40%, 21%, 18% and 10%, respectively, of total revenues. Accounts receivable relating to oil, NGL and natural gas sales from Vitol Inc., Shell Trading (US) Company, and NGL Crude Logistics LLC represented 59%, 19% and 17%, respectively, of total receivables at December 31, 2017. Accounts receivable relating to oil, NGL and natural gas sales from Shell Trading, Trafigura AG and Texla Energy Management, Inc. represented 49%, 30% and 13%, respectively, of total receivables at December 31, 2016. |
Oil and Natural Gas Properties | Oil and Natural Gas Properties The Company uses the successful efforts method of accounting to account for its oil and natural gas properties. Under this method, costs of acquiring properties, costs of drilling successful exploration wells, and development costs are capitalized. The costs of exploratory wells are initially capitalized pending a determination of whether proved reserves have been found. At the completion of drilling activities, the costs of exploratory wells remain capitalized if a determination is made that proved reserves have been found. If no proved reserves have been found, the costs of each of the related exploratory wells are charged to expense. In some cases, a determination of proved reserves cannot be made at the completion of drilling, requiring additional testing and evaluation of the wells. The Company’s policy is to expense the costs of such exploratory wells if a determination of proved reserves has not been made within a 12-month period after drilling is complete. As of December 31, 2017, the Company did not have any capitalized exploratory well costs that were pending determination of proved reserves. All costs related to development wells, including related production equipment and lease acquisition costs, are capitalized when incurred, whether productive or nonproductive. Capitalized costs attributed to the proved properties are subject to depreciation and depletion. Depreciation and depletion of the cost of oil and gas properties is calculated using the units-of-production method aggregating properties on a field basis. For leasehold acquisition costs and the cost to acquire proved properties, the reserve base used to calculate depreciation and depletion is the sum of proved developed reserves and proved undeveloped reserves. For development costs, the reserve base used to calculate depletion and depreciation is proved developed reserves only. Unproved properties consist of costs incurred to acquire unproved leases. Unproved lease acquisition costs are capitalized until the leases expire or when the Company specifically identifies leases that will revert to the lessor, at which time the Company expenses the associated unproved lease acquisition costs. The expensing of the unproved lease acquisition costs is recorded as an impairment of oil and gas properties in the consolidated statement of operations, as applicable. Unproved oil and gas property costs are transferred to proven oil and gas properties if the properties are subsequently determined to be productive or are assigned proved reserves. Unproved oil and gas properties are assessed periodically for impairment based on remaining lease terms, drilling results, reservoir performance, future plans to develop acreage, and other relevant factors. On the sale or retirement of a complete or partial unit of a proved property, the cost and related accumulated depreciation, depletion, and amortization are eliminated from the property accounts, and any gain or loss is recognized. |
Other Property and Equipment | Other Property and Equipment Other property and equipment, consisting primarily of office, transportation and computer equipment, as well as our new corporate headquarters, is carried at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, ranging from 3 to 5 years, with the exception of our corporate headquarters, which is 30 years. Major renewals and improvements are capitalized, while expenditures for maintenance and repairs are expensed as incurred. Upon sale or abandonment, the cost of the equipment and related accumulated depreciation are removed from the accounts, and any gain or loss is recognized. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The carrying value of the oil and gas properties and other related property and equipment is periodically evaluated under the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360, Property, Plant, and Equipment Under ASC 360, the Company evaluates impairment of proved and unproved oil and gas properties on an area basis. On this basis, certain fields may be impaired because they are not expected to recover their entire carrying value from future net cash flows. As a result of this evaluation, the Company recorded impairment of unproved oil and gas properties of approximately $28.6 million and $4.8 million for the years ended December 31, 2017 and 2016, respectively, and impairment of proven oil and gas properties of $4.8 million and $30.8 million for the years ended December 31, 2017 and 2016, respectively. If pricing declines, it is reasonably likely that the Company may have to record impairment of its oil and gas properties subsequent to December 31, 2017. |
Asset Retirement Obligations | Asset Retirement Obligations The Company accounts for asset retirement obligations under ASC 410, Asset Retirement and Environmental Obligations Asset Retirement Obligations |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when it is realized or realizable and earned. Revenues are considered realized or realizable and earned when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the seller’s price to the buyer is fixed or determinable and (iv) collectability is reasonably assured. The Company follows the sales method of accounting for natural gas revenue, whereby revenue is recorded based on the Company’s share of volume sold, regardless of whether the Company has taken its proportional share of volume produced. A receivable or liability is recognized only to the extent that the Company has an imbalance on a specific property greater than the expected remaining proved reserves. There were no imbalances at December 31, 2017 or 2016. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments In accordance with the reporting requirements of ASC 825, Financial Instruments Fair Value Measurements |
Income Taxes | Income Taxes The Company follows the asset and liability method in accounting for income taxes in accordance with ASC 740, Income Taxes Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company periodically evaluates the realizable tax benefits of deferred tax assets and records a valuation allowance, if required, based on an estimate of the amount of deferred tax assets the Company believes does not meet the more likely than not criteria of being realized. In certain circumstances, the deferred tax asset may exceed the amount permissible to be used under the tax law, for example, a net operating loss carryforward. In such cases it is appropriate to write-off the excess net operating loss. At December 31, 2016, the Company wrote off $141.7 million of its net operating loss carryforward. See Note 10, Income Taxes The Company evaluates uncertain tax positions, which requires significant judgments and estimates regarding the recoverability of deferred tax assets, the likelihood of the outcome of examinations of tax positions that may or may not be currently under review, and potential scenarios involving settlements of such matters. Changes in these estimates could materially impact the consolidated financial statements. No liability for material uncertain tax positions existed as of December 31, 2017 or 2016. |
Share-Based Payments | Share-Based Payments The Company accounts for equity-based awards in accordance with ASC 718, Compensation-Stock Compensation |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Business Combinations. In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-01, (“ASU 2017-01”) 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. Effective January 1, 2018, the Company adopted ASU 2017-01, which will not have a material impact on the Company’s consolidated financial statements. Leases. In February 2016, the FASB issued ASU 2016-02, (“ASU 2016-02”), 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. ASU 2016-02 is effective for the annual period beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. Entities must adopt the standard using a modified retrospective transition and apply the guidance to the earliest comparative period presented, with certain practical expedients that entities may elect to apply. Management is currently assessing the impact the adoption of ASU 2016-02 will have on our consolidated financial statements. Revenue Recognition. In May 2014, the FASB issued ASU 2014-09, (“ASU 2014-09”). The objective of ASU 2014-09 is greater consistency and comparability across industries by using a five-step model to recognize revenue from customer contracts. Effective January 1, 2018, the Company adopted ASU 2014-09, using the modified retrospective method applied to contracts that were not completed as of January 1, 2018. We have reviewed various contracts that represent our material revenue streams and determined that there was no material impact to our financial position, results of operations or liquidity. Upon adoption of this ASU, we were not required to record a cumulative adjustment to beginning retained earnings. The Company continues to review its implementation documentation and its evaluation of the new disclosure requirements is ongoing. |
Restatement of Previously Iss_2
Restatement of Previously Issued Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Schedule of Previously Reported Amounts to Restated Amounts for Each Consolidated Financial Statement | The table below sets forth the consolidated statements of operations, including the balances originally reported, corrections and the as restated balances for each fiscal year: Year Ended December 31, 2017 December 31, 2016 (In thousands except per share data) As Reported Correction As Restated As Reported Correction As Restated Depreciation, depletion and amortization $ 52,718 $ 4,100 $ 56,818 $ 46,888 $ 5,107 $ 51,995 Impairment of oil and gas properties 33,413 — 33,413 33,893 1,677 35,570 Total expenses 125,409 4,100 129,509 115,695 6,784 122,479 Loss from operations (31,341 ) (4,100 ) (35,441 ) (57,723 ) (6,784 ) (64,507 ) Loss before income taxes (68,404 ) (4,100 ) (72,504 ) (66,930 ) (6,784 ) (73,714 ) Income tax benefit (expense) 29,741 (722 ) 29,019 (27,405 ) 2,419 (24,986 ) Net loss attributable to common stockholders (42,631 ) (4,822 ) (47,453 ) (94,335 ) (4,365 ) (98,700 ) Net loss per common share Basic $ (1.92 ) $ (0.21 ) $ (2.13 ) $ (11.64 ) $ (0.53 ) $ (12.17 ) Diluted $ (1.92 ) $ (0.21 ) $ (2.13 ) $ (11.64 ) $ (0.53 ) $ (12.17 ) The table below sets forth the consolidated balance sheets, including the balances originally reported, corrections and the as restated balances for each fiscal year: December 31, 2017 December 31, 2016 (In thousands) As Reported Correction As Restated As Reported Correction As Restated Assets Oil and gas properties, net $ 571,163 $ (14,992 ) $ 556,171 $ 439,228 $ (10,892 ) $ 428,336 Total assets 606,800 (14,992 ) 591,808 459,109 (10,892 ) 448,217 Liabilities and Stockholders' equity Deferred tax liability $ 8,105 $ (3,336 ) $ 4,769 $ 38,020 $ (4,060 ) $ 33,960 Total liabilities 391,454 (3,336 ) 388,118 292,716 (4,060 ) 288,656 Accumulated deficit (102,180 ) (11,656 ) (113,836 ) (63,517 ) (6,834 ) (70,351 ) Total stockholders' equity 215,346 (11,656 ) 203,690 166,395 (6,834 ) 159,561 The table below sets forth the consolidated statements of cash flows from operating activities, including the balances originally reported, corrections and the as restated balances for each fiscal year: Year Ended December 31, 2017 December 31, 2016 (In thousands) As Reported Correction As Restated As Reported Correction As Restated Cash flows from operating activities: Net loss $ (38,663 ) $ (4,822 ) $ (43,485 ) $ (94,335 ) $ (4,365 ) $ (98,700 ) Depreciation, depletion and amortization 52,718 4,100 56,818 46,888 5,107 51,995 Deferred taxes (29,913 ) 722 (29,191 ) 22,007 (2,419 ) 19,588 Impairment of oil and gas properties 33,413 — 33,413 33,893 1,677 35,570 Net cash provided by operating activities 43,446 — 43,446 24,269 — 24,269 The restatement had no impact on cash flows from investing activities or financing activities. The table below sets forth the consolidated statements of shareholders' equity, including the balances originally reported, corrections and the as restated balances for each fiscal year: Total Accumulated Stockholders' (In thousands) Deficit Equity Balance at December 31, 2015, as reported $ 30,818 $ 182,966 Correction (2,469 ) (2,469 ) Balance at December 31, 2015, as restated 28,349 180,497 Balance at December 31, 2016, as reported $ (63,517 ) $ 166,395 Correction (6,834 ) (6,834 ) Balance at December 31, 2016, as restated (70,351 ) 159,561 Balance at December 31, 2017, as reported $ (102,180 ) $ 215,346 Correction (11,656 ) (11,656 ) Balance at December 31, 2017, as restated (113,836 ) 203,690 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Unaudited Pro Forma Operating Results | Year Ended December 31, In thousands 2017 2016 (Restated) (Restated) Pro forma total revenues $ 107,853 $ 91,532 Pro forma net loss attributable to common stockholders (53,310 ) (50,458 ) Pro forma net loss per common share, basic and diluted (2.40 ) (6.22 ) |
Commodity Price Risk Activiti_2
Commodity Price Risk Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Transactions Outstanding | As of December 31, 2017, the following derivative transactions were outstanding: Instrument Total Volume Settlement Period Fixed Price 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 509,000 Bbl January – December 2018 50.17 Oil – WTI Fixed Price Swap 508,900 Bbl January – December 2019 50.40 Oil – WTI Fixed Price Swap 560,700 Bbl January – December 2019 48.04 Oil – WTI Fixed Price Swap 401,500 Bbl January – December 2019 50.90 Oil – WTI Fixed Price Swap 203,600 Bbl January – June 2020 48.90 Natural Gas – Henry Hub NYMEX Fixed Price Swap 1,825,000 MMBtu January – December 2018 3.09 Instrument Total Volume Settlement Period Puts Calls Oil – 2 Way Collar 182,500 Bbl January – December 2018 $ 50.00 $ 59.45 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2017 and 2016, for each fair value hierarchy level: Fair Value Measurements Using In thousands Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total December 31, 2017 Assets: Commodity derivatives $ — $ 472 $ — $ 472 Liabilities: Commodity derivatives — (22,138 ) — (22,138 ) Equity warrant liability — — (508 ) (508 ) Equity warrant liability - related parties — — (963 ) (963 ) Stock appreciation rights — — (314 ) (314 ) Total $ — $ (21,666 ) $ (1,785 ) $ (23,451 ) December 31, 2016 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 liability for the year ended December 31, 2017. In thousands Equity Warrant Liability Stock Appreciation Rights Total Balance at December 31, 2016 $ (4,559 ) $ — $ (4,559 ) Purchases, sales, issuances and settlements (net) — (72 ) (72 ) Unrealized gains/(losses) 3,088 (242 ) 2,846 Balance at December 31, 2017 $ (1,471 ) $ (314 ) $ (1,785 ) |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Extractive Industries [Abstract] | |
Summary of Oil and Gas Properties | A summary of oil and gas properties follows: December 31, In thousands 2017 2016 (Restated) (Restated) Proved properties and equipment $ 750,226 $ 538,695 Unproved properties 78,655 72,584 Less accumulated depletion and impairment (272,710 ) (182,943 ) Total oil and gas properties $ 556,171 $ 428,336 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change in Asset Retirement Obligations | The following represents a reconciliation of the asset retirement obligations: Year Ended December 31, In thousands 2017 2016 Asset retirement obligations at beginning of period $ 2,683 $ 7,488 Wells drilled during the year 220 154 Wells acquired during the year 2,797 28 Wells sold during the year — (4,780 ) Accretion of discount 139 180 Revisions of previous estimates (1) (190 ) (205 ) Wells plugged and abandoned during the year — (182 ) Asset retirement obligations at end of period $ 5,649 $ 2,683 (1) Revisions of previous estimates during the year ended December 31, 2017 are primarily attributable to changes in estimates of the timing of future costs for oilfield services required to plug and abandon wells. |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: Year Ended December 31, In thousands 2017 2016 Bonus payable $ 2,250 $ 2,155 Payroll payable 18 1 Accrued interest - 8.750% Senior Notes 2,768 2,924 Accrued interest - other 1,015 523 Accrued rent 156 298 Accrued well costs 8,386 3,366 Accrued severance, property, federal and franchise taxes 115 431 Accrued federal income tax 1,147 — Other 728 249 Total accrued liabilities $ 16,583 $ 9,947 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Long-Term Debt | Long-term debt consists of the following: December 31, In thousands 2017 2016 Credit Facility $ 142,080 $ 43,500 Second Lien Notes — 11,367 8.750% Senior Notes 151,848 151,848 Less unamortized discount on 8.750% Senior Notes (949 ) (1,708 ) Less deferred financing costs on 8.750% Senior Notes (474 ) (851 ) Less deferred financing costs on Second Lien Notes — (316 ) Mortgage debt 7,891 — Other 759 282 Total long-term debt $ 301,155 $ 204,122 |
LRAI | |
Schedule of Redemption Prices Expressed as Percentages of Principal Amount | On or after April 15, 2016, LRAI could 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 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Current and Deferred Components of Income Tax (Benefit) Expense | The current and deferred components of income tax (benefit) expense are as follows: Year Ended December 31, In thousands 2017 2016 (Restated) (Restated) Current income tax expense Federal $ 59 $ 5,057 State 113 341 Total current income tax expense 172 5,398 Deferred tax (benefit) expense Federal (29,125 ) 19,534 Foreign — 270 State (66 ) (216 ) Total deferred income tax (benefit) expense (29,191 ) 19,588 Total income tax (benefit) expense $ (29,019 ) $ 24,986 |
Difference between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes | The following table provides a reconciliation of the Company’s actual income tax provision amounts from the expected income tax provision amount by applying the U.S. federal statutory corporate income tax rate of 35% for the periods indicated: Year Ended December 31, In thousands 2017 2016 (Restated) (Restated) Expected income tax benefit at statutory rate $ (25,370 ) $ (25,800 ) Permanent differences (357 ) 511 Remeasurement of deferred balances due to federal rate change (4,140 ) — Net operating loss write down — 49,608 State tax, tax effected 97 (20 ) Prior year differences 779 311 Other (28 ) 376 Actual income tax (benefit) provision $ (29,019 ) $ 24,986 |
Deferred Tax Assets and Liabilities | The tax effects of the Company’s temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: December 31, In thousands 2017 2016 (Restated) (Restated) Deferred tax assets: Net operating loss carryforward $ 20,874 $ 20,442 Stock based compensation 1,891 2,593 Intangibles 351 682 Organizational expenses and other 2,900 3,864 Total deferred tax assets $ 26,016 $ 27,581 Deferred tax liabilities: Oil and gas properties and other property and equipment, principally due to intangible drilling costs $ (35,214 ) $ (62,712 ) Loss on derivative instruments 4,429 1,371 Other — (200 ) Net deferred tax liabilities $ (4,769 ) $ (33,960 ) |
Stock-Based Compensation and _2
Stock-Based Compensation and Other Incentives (Tables) | 12 Months Ended |
Dec. 31, 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. The number of shares that may be issued under the 2016 Incentive Plan is 2.2 million shares. The number of shares available for issuance under the 2016 Incentive Plan is approximately 0.8 million shares. Shares Weighted Average Exercise Price Per Share Weighted Remaining Contractual Term (in years) Outstanding at December 31, 2016 191,750 $ 15.00 0.25 Options vested and exercisable at December 31, 2016 191,750 15.00 0.25 Granted — — — Exercised — — — Canceled/expired (116,750 ) — — Forfeited (75,000 ) 20.00 — Outstanding at December 31, 2017 — $ — — Options vested and exercisable at December 31, 2017 — $ — — |
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 740,409 3.0 Canceled/expired — — Forfeited (11,500 ) 2.2 Outstanding at December 31, 2017 728,909 2.2 RSUs vested at December 31, 2017 — — Shares Weighted Average Fair Value per Share Weighted Average Remaining Contractual Term (in years) Outstanding non-vested RSUs at December 31, 2016 — $ — — Granted 740,409 5.57 3.0 Vested — — — Forfeited (11,500 ) 6.00 2.2 Outstanding non-vested RSUs at December 31, 2017 728,909 $ 5.56 2.2 |
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 December 31, 2017 690,000 $ 7.20 4.3 SARs vested and exercisable at December 31, 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 6.00 7.20 5.0 Vested — — — — Forfeited (10,000 ) 5.17 7.20 4.3 Outstanding non-vested SARs at December 31, 2017 690,000 $ 3.97 $ 7.20 4.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Unaudited Earnings Per Share (After Reorganization) | The following table presents unaudited earnings per share of Lonestar Resources US Inc., assuming that the 1-for-2 reverse stock split upon Reorganization had occurred at the beginning of the year ended December 31, 2016: Year Ended December 31, 2017 2016 Net loss per share of Class A voting common stock: Basic $ (2.13 ) $ (12.17 ) Diluted (2.13 ) (12.17 ) Weighted average Class A voting common stock outstanding: Basic 22,252,149 8,106,931 Diluted 22,252,149 8,106,931 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company entered into an operating lease agreement for its corporate office in October 2014 which will expire in October 2021. Future minimum annual lease payments are as follows: In thousands Future Minimum Rentals 2018 $ 412 2019 422 2020 432 2021 368 Total minimum lease payments $ 1,634 |
Nature of Business and Presen_3
Nature of Business and Presentation - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Nature Of Business And Presentation [Line Items] | ||
Gain (loss) recorded under reorganization | $ 0 | |
Maturity period of highly liquid investments | three months or less | |
Capitalized exploratory well costs pending determination of proved reserves | $ 0 | |
Impairment of oil and gas properties | 33,413,000 | $ 35,570,000 |
Net operating loss carryforward, wrote off | 141,700,000 | |
Liability for material uncertain tax positions | $ 0 | 0 |
Option vesting period | 3 years | |
Corporate Headquarter | ||
Nature Of Business And Presentation [Line Items] | ||
Estimated useful lives | 30 years | |
Unproved Oil and Gas Properties | ||
Nature Of Business And Presentation [Line Items] | ||
Impairment of oil and gas properties | $ 28,600,000 | 4,800,000 |
Proven Oil and Gas Properties | ||
Nature Of Business And Presentation [Line Items] | ||
Impairment of oil and gas properties | $ 4,800,000 | $ 30,800,000 |
Minimum | Other Property and Equipment | ||
Nature Of Business And Presentation [Line Items] | ||
Estimated useful lives | 3 years | |
Maximum | Other Property and Equipment | ||
Nature Of Business And Presentation [Line Items] | ||
Estimated useful lives | 5 years | |
Sales Revenue, Net | Customer Concentration Risk | Trafigura AG | ||
Nature Of Business And Presentation [Line Items] | ||
Concentration risk, percentage | 14.00% | 18.00% |
Sales Revenue, Net | Customer Concentration Risk | BP Products North America LLC | ||
Nature Of Business And Presentation [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Sales Revenue, Net | Customer Concentration Risk | Shell Trading (US) Company | ||
Nature Of Business And Presentation [Line Items] | ||
Concentration risk, percentage | 20.00% | 40.00% |
Sales Revenue, Net | Customer Concentration Risk | Texla Energy Management, Inc | ||
Nature Of Business And Presentation [Line Items] | ||
Concentration risk, percentage | 16.00% | 21.00% |
Sales Revenue, Net | Customer Concentration Risk | Vitol Inc | ||
Nature Of Business And Presentation [Line Items] | ||
Concentration risk, percentage | 35.00% | |
Sales Revenue, Net | Customer Concentration Risk | NGL Crude Logistics LLC | ||
Nature Of Business And Presentation [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Accounts Receivable | Customer Concentration Risk | Trafigura AG | ||
Nature Of Business And Presentation [Line Items] | ||
Concentration risk, percentage | 30.00% | |
Accounts Receivable | Customer Concentration Risk | Shell Trading (US) Company | ||
Nature Of Business And Presentation [Line Items] | ||
Concentration risk, percentage | 19.00% | 49.00% |
Accounts Receivable | Customer Concentration Risk | Texla Energy Management, Inc | ||
Nature Of Business And Presentation [Line Items] | ||
Concentration risk, percentage | 13.00% | |
Accounts Receivable | Customer Concentration Risk | Vitol Inc | ||
Nature Of Business And Presentation [Line Items] | ||
Concentration risk, percentage | 59.00% | |
Accounts Receivable | Customer Concentration Risk | NGL Crude Logistics LLC | ||
Nature Of Business And Presentation [Line Items] | ||
Concentration risk, percentage | 17.00% |
Restatement of Previously Iss_3
Restatement of Previously Issued Financial Statements - Schedule of Consolidated Statements of Operations, Including Balances Originally Reported, Corrections and Restated Balances (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||
Depletion, depreciation, and amortization | $ 56,818 | $ 51,995 |
Impairment of oil and gas properties | 33,413 | 35,570 |
Total expenses | 129,509 | 122,479 |
Loss from operations | (35,441) | (64,507) |
Loss before income taxes | (72,504) | (73,714) |
Income tax benefit (expense) | 29,019 | (24,986) |
Net loss attributable to common stockholders | $ (47,453) | $ (98,700) |
Net loss per common share | ||
Basic | $ (2.13) | $ (12.17) |
Diluted | $ (2.13) | $ (12.17) |
As Reported | ||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||
Depletion, depreciation, and amortization | $ 52,718 | $ 46,888 |
Impairment of oil and gas properties | 33,413 | 33,893 |
Total expenses | 125,409 | 115,695 |
Loss from operations | (31,341) | (57,723) |
Loss before income taxes | (68,404) | (66,930) |
Income tax benefit (expense) | 29,741 | (27,405) |
Net loss attributable to common stockholders | $ (42,631) | $ (94,335) |
Net loss per common share | ||
Basic | $ (1.92) | $ (11.64) |
Diluted | $ (1.92) | $ (11.64) |
Correction | ||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||
Depletion, depreciation, and amortization | $ 4,100 | $ 5,107 |
Impairment of oil and gas properties | 1,677 | |
Total expenses | 4,100 | 6,784 |
Loss from operations | (4,100) | (6,784) |
Loss before income taxes | (4,100) | (6,784) |
Income tax benefit (expense) | (722) | 2,419 |
Net loss attributable to common stockholders | $ (4,822) | $ (4,365) |
Net loss per common share | ||
Basic | $ (0.21) | $ (0.53) |
Diluted | $ (0.21) | $ (0.53) |
Restatement of Previously Iss_4
Restatement of Previously Issued Financial Statements - Schedule of Consolidated Balance Sheets, Including Balances Originally Reported, Corrections and Restated Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Oil and gas properties, net | $ 556,171 | $ 428,336 | |
Total assets | 591,808 | 448,217 | |
Liabilities and Stockholders’ Equity | |||
Deferred tax liability | 4,769 | 33,960 | |
Total liabilities | 388,118 | 288,656 | |
Accumulated deficit | (113,836) | (70,351) | $ 28,349 |
Total stockholders' equity | 203,690 | 159,561 | 180,497 |
As Reported | |||
Assets | |||
Oil and gas properties, net | 571,163 | 439,228 | |
Total assets | 606,800 | 459,109 | |
Liabilities and Stockholders’ Equity | |||
Deferred tax liability | 8,105 | 38,020 | |
Total liabilities | 391,454 | 292,716 | |
Accumulated deficit | (102,180) | (63,517) | 30,818 |
Total stockholders' equity | 215,346 | 166,395 | 182,966 |
Correction | |||
Assets | |||
Oil and gas properties, net | (14,992) | (10,892) | |
Total assets | (14,992) | (10,892) | |
Liabilities and Stockholders’ Equity | |||
Deferred tax liability | (3,336) | (4,060) | |
Total liabilities | (3,336) | (4,060) | |
Accumulated deficit | (11,656) | (6,834) | (2,469) |
Total stockholders' equity | $ (11,656) | $ (6,834) | $ (2,469) |
Restatement of Previously Iss_5
Restatement of Previously Issued Financial Statements - Schedule of Consolidated Statements of Cash Flows from Operating Activities, Including Balances Originally Reported, Corrections and Restated Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (43,485) | $ (98,700) |
Depletion, depreciation, and amortization | 56,818 | 51,995 |
Deferred taxes | (29,191) | 19,588 |
Impairment of oil and gas properties | 33,413 | 35,570 |
Net cash provided by operating activities | 43,446 | 24,269 |
As Reported | ||
Cash flows from operating activities: | ||
Net loss | (38,663) | (94,335) |
Depletion, depreciation, and amortization | 52,718 | 46,888 |
Deferred taxes | (29,913) | 22,007 |
Impairment of oil and gas properties | 33,413 | 33,893 |
Net cash provided by operating activities | 43,446 | 24,269 |
Correction | ||
Cash flows from operating activities: | ||
Net loss | (4,822) | (4,365) |
Depletion, depreciation, and amortization | 4,100 | 5,107 |
Deferred taxes | $ 722 | (2,419) |
Impairment of oil and gas properties | $ 1,677 |
Restatement of Previously Iss_6
Restatement of Previously Issued Financial Statements - Schedule of Consolidated Statements of Shareholders' Equity, Including Balances Originally Reported, Corrections and Restated Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||
Accumulated Deficit | $ (113,836) | $ (70,351) | $ 28,349 |
Total Stockholders' Equity | 203,690 | 159,561 | 180,497 |
As Reported | |||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||
Accumulated Deficit | (102,180) | (63,517) | 30,818 |
Total Stockholders' Equity | 215,346 | 166,395 | 182,966 |
Correction | |||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||
Accumulated Deficit | (11,656) | (6,834) | (2,469) |
Total Stockholders' Equity | $ (11,656) | $ (6,834) | $ (2,469) |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) $ / shares in Units, $ in Thousands | Aug. 02, 2017USD ($) | Jun. 15, 2017USD ($)$ / sharesshares | Aug. 02, 2016USD ($)aWellshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares |
Business Acquisition [Line Items] | ||||||
Acquisition of oil and gas properties | $ 113,726 | $ 4,340 | ||||
Preferred Stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||||
Acquisition costs | $ 3,202 | |||||
Preferred stock issued to finance acquisition | ||||||
Revenues | 94,068 | 57,972 | ||||
Direct operating expenses | $ 129,509 | $ 122,479 | ||||
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 | 0 | 0 | 0 | |||
Series A-1 Convertible Participating Preferred Stock | ||||||
Business Acquisition [Line Items] | ||||||
Preferred Stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred stock, shares issued | shares | 83,968 | 83,968 | 0 | |||
Battlecat Oil & Gas, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Purchase consideration of oil and gas properties | $ 59,800 | |||||
Acquisition of oil and gas properties | 55,000 | |||||
Purchase consideration paid to acquire proved reserves | 56,300 | |||||
Purchase consideration paid to acquire unproved reserves | 2,900 | |||||
Purchase consideration paid to acquire unevaluated acreage and other assets | 600 | |||||
Asset retirement obligations recorded with the acquisition of properties | 200 | |||||
Fair value of net assets acquired | 59,600 | |||||
Acquisition costs | $ 1,500 | |||||
Effective date of acquisition | Apr. 1, 2017 | |||||
Revenues | $ 2,200 | |||||
Direct operating expenses | 600 | |||||
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 | |||||
SN Marquis LLC | ||||||
Business Acquisition [Line Items] | ||||||
Purchase consideration of oil and gas properties | 50,000 | |||||
Acquisition of oil and gas properties | 44,000 | |||||
Purchase consideration paid to acquire proved reserves | 48,000 | |||||
Purchase consideration paid to acquire unproved reserves | 600 | |||||
Asset retirement obligations recorded with the acquisition of properties | 1,900 | |||||
Fair value of net assets acquired | 48,100 | |||||
Acquisition costs | $ 1,200 | |||||
Effective date of acquisition | Jan. 1, 2017 | |||||
Purchase consideration paid to acquire land, building and other assets | $ 1,400 | |||||
Revenues | 13,200 | |||||
Direct operating expenses | $ 3,810 | |||||
SN Marquis LLC | SN UR Holdings, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in connection with acquisition | shares | 1,500,000 | |||||
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 | |||||
Battlecat and Marquis | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in connection with acquisition | shares | 1,500,000 | |||||
Preferred stock issued to finance acquisition | $ 80,000 | |||||
Preferred stock issued to finance acquisition, initial conversion price | $ / shares | $ 6 | |||||
Senior Secured Credit Facility issue to finance acquisition | $ 24,000 | |||||
Battlecat and Marquis | Series B Convertible Participating Preferred Stock | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in connection with acquisition | shares | 1,184,632 | |||||
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 | |||||
Fort Worth, Texas | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition price of an office building | $ 10,000 | |||||
Brazos County | Juneau Energy, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition of oil and gas properties | $ 5,500 | |||||
Purchase and sale agreement date | Aug. 2, 2016 | |||||
Undivided interest acquired in producing wells | 50.00% | |||||
Productive Oil Wells, Number of Wells | Well | 2 | |||||
Net mineral acres | a | 1,300 | |||||
Brazos County | Class A Voting Common Stock | Juneau Energy, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in connection with acquisition | shares | 500,227 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Pro Forma Revenue Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Combinations [Abstract] | ||
Pro forma total revenues | $ 107,853 | $ 91,532 |
Pro forma net loss attributable to common stockholders | $ (53,310) | $ (50,458) |
Pro forma net loss per common share, basic and diluted | $ (2.40) | $ (6.22) |
Commodity Price Risk Activiti_3
Commodity Price Risk Activities - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017bbl / dMMBTU / dDeliveryObligationbbl | |
Derivative [Line Items] | |
Number of open physical obligations | DeliveryObligation | 0 |
Oil Derivative Contracts, 2018 | |
Derivative [Line Items] | |
Derivative contracts, aggregate volume | bbl | 1,713,500 |
Derivative contracts, aggregate volume per day | bbl / d | 4,695 |
Oil Derivative Contracts, 2019 | |
Derivative [Line Items] | |
Derivative contracts, aggregate volume | bbl | 1,471,100 |
Derivative contracts, aggregate volume per day | bbl / d | 4,030 |
Oil Derivative Contracts, 2020 | |
Derivative [Line Items] | |
Derivative contracts, aggregate volume | bbl | 203,600 |
Derivative contracts, aggregate volume per day | bbl / d | 1,119 |
Natural Gas Derivative Contracts, 2018 | |
Derivative [Line Items] | |
Derivative contracts, aggregate volume per day | MMBTU / d | 5,000 |
Commodity Price Risk Activiti_4
Commodity Price Risk Activities - Schedule of Derivative Transactions Outstanding (Details) | 12 Months Ended |
Dec. 31, 2017MMBTU$ / bbl$ / MMBTUbbl | |
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 - $50.17 - Settlement Period - January - December 2018 | |
Derivative [Line Items] | |
Total Volume | bbl | 509,000 |
Fixed Price | 50.17 |
Oil - WTI Fixed Price Swap - $50.40 - Settlement Period - January - December 2019 | |
Derivative [Line Items] | |
Total Volume | bbl | 508,900 |
Fixed Price | 50.40 |
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 - $50.90 - Settlement Period - January - December 2019 | |
Derivative [Line Items] | |
Total Volume | bbl | 401,500 |
Fixed Price | 50.90 |
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 - $3.09 - Settlement Period - January - December 2018 | |
Derivative [Line Items] | |
Total Energy | MMBTU | 1,825,000 |
Fixed Price | $ / MMBTU | 3.09 |
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 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity warrant liability | $ (508) | $ (1,565) |
Equity warrant liability - related parties | (963) | (2,994) |
Stock appreciation rights | (314) | |
Total | (23,451) | (6,939) |
Commodity Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 472 | 1,730 |
Liabilities | (22,138) | (4,110) |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | (21,666) | (2,380) |
Significant Other Observable Inputs (Level 2) | Commodity Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 472 | 1,730 |
Liabilities | (22,138) | (4,110) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity warrant liability | (508) | (1,565) |
Equity warrant liability - related parties | (963) | (2,994) |
Stock appreciation rights | (314) | |
Total | $ (1,785) | $ (4,559) |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value for the Level 3 Liability (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 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) | 2,846 |
Ending balance | (1,785) |
Equity Warrant Liability | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Beginning balance | (4,559) |
Unrealized gains/(losses) | 3,088 |
Ending balance | (1,471) |
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) | (242) |
Ending balance | $ (314) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
8.750% Senior Notes Due April 15, 2019 | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes | $ 158.9 | |
Debt instrument interest rate | 8.75% | 8.75% |
Wilson County | ||
Debt Instrument [Line Items] | ||
Impairment related to leased acreage | $ 4.8 | |
Texas | ||
Debt Instrument [Line Items] | ||
Impairment related to leased acreage | $ 21.1 |
Oil and Gas Properties - Summar
Oil and Gas Properties - Summary of Oil and Gas Properties (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Oil And Gas Exploration And Production Industries Disclosures [Abstract] | ||
Proved properties and equipment | $ 750,226 | $ 538,695 |
Unproved properties | 78,655 | 72,584 |
Less accumulated depletion and impairment | (272,710) | (182,943) |
Total oil and gas properties | $ 556,171 | $ 428,336 |
Asset Retirement Obligations -
Asset Retirement Obligations - Additional Information (Details) $ in Millions | Dec. 31, 2017USD ($) |
Asset Retirement Obligation [Abstract] | |
Capitalized asset retirement cost | $ 5.3 |
Asset Retirement Obligations _2
Asset Retirement Obligations - Schedule of Change in Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation [Abstract] | ||
Asset retirement obligations at beginning of period | $ 2,683 | $ 7,488 |
Wells drilled during the year | 220 | 154 |
Wells acquired during the year | 2,797 | 28 |
Wells sold during the year | (4,780) | |
Accretion of discount | 139 | 180 |
Revisions of previous estimates | (190) | (205) |
Wells plugged and abandoned during the year | (182) | |
Asset retirement obligations at end of period | $ 5,649 | $ 2,683 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Bonus payable | $ 2,250 | $ 2,155 |
Payroll payable | 18 | 1 |
Accrued interest - 8.750% Senior Notes | 2,768 | 2,924 |
Accrued interest - other | 1,015 | 523 |
Accrued rent | 156 | 298 |
Accrued well costs | 8,386 | 3,366 |
Accrued severance, property, federal and franchise taxes | 115 | 431 |
Accrued federal income tax | 1,147 | |
Other | 728 | 249 |
Total accrued liabilities | $ 16,583 | $ 9,947 |
Accrued Liabilities - Schedul_2
Accrued Liabilities - Schedule of Accrued Liabilities Parenthetical (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
8.750% Senior Notes Due April 15, 2019 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 8.75% | 8.75% |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Credit Facility | $ 142,080 | $ 43,500 |
Second Lien Notes | 11,367 | |
8.750% Senior Notes | 151,848 | 151,848 |
Less unamortized discount on 8.750% Senior Notes | (949) | (1,708) |
Other | 759 | 282 |
Total long-term debt | 301,155 | 204,122 |
8.750% Senior Notes Due April 15, 2019 | ||
Debt Instrument [Line Items] | ||
Less deferred financing costs | (474) | (851) |
Second Lien Notes | ||
Debt Instrument [Line Items] | ||
Less deferred financing costs | $ (316) | |
Mortgages Debt | ||
Debt Instrument [Line Items] | ||
Mortgage debt | $ 7,891 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility - Additional Information (Details) - USD ($) $ in Thousands | Jan. 04, 2018 | Jul. 28, 2015 | Jan. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jun. 15, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||
Senior Secured Credit Facility | $ 142,080 | $ 43,500 | |||||
Senior secured credit facility sub limit | 2,500 | ||||||
Debt instrument expanded borrowing base | $ 160,000 | ||||||
Debt instrument borrowing base determination | semi-annually as of May 1 and November 1 | ||||||
Leverage ratio | 4.00% | 1.00% | |||||
Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.375% | ||||||
Debt instrument expanded borrowing base | $ 112,000 | ||||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.50% | ||||||
Debt instrument expanded borrowing base | $ 160,000 | ||||||
Senior Secured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument covenant description | The Credit Facility contains two financial covenants, as defined in the Credit Facility: (a) a maximum debt to EBITDAX ratio (discussed further below) and (b) a current ratio of not less than 1.0 to 1.0. As of December 31, 2017, the Company was in compliance with the minimum debt to EBITDAX ratio; however, the current ratio as of December 31, 2017 was approximately 0.7 to 1.0 due to low availability under the Credit Facility. | ||||||
Minimum current ratio | 100.00% | ||||||
Current ratio | 70.00% | ||||||
Citibank N A | Senior Secured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument maturity date | Oct. 16, 2018 | ||||||
Debt instrument interest rate | 8.75% | ||||||
Senior Secured Credit Facility | $ 142,100 | $ 43,500 | |||||
Borrowing availability | $ 17,400 | ||||||
LRAI | Senior Secured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument basis spread on variable rate | 5.13% | ||||||
Lien percentage of assets for senior secured credit facility | 90.00% | ||||||
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 | 2.50% | ||||||
Margin of loans, maximum | 3.50% | ||||||
LRAI | Senior Secured Credit Facility | ABR | |||||||
Debt Instrument [Line Items] | |||||||
Margin of loans, minimum | 1.50% | ||||||
Margin of loans, maximum | 2.50% | ||||||
LRAI | Senior Secured Credit Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Lien percentage of assets for senior secured credit facility | 80.00% | ||||||
LRAI | Citibank N A | Senior Secured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument face amount | $ 500,000 | ||||||
Subsequent Event | Senior Secured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument expanded borrowing base | $ 160,000 | ||||||
Credit facility's outstanding balance paid down | $ 80,000 | ||||||
Subsequent Event | 11.25% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument maturity date | Jan. 1, 2023 | ||||||
Debt instrument interest rate | 11.25% | 11.25% | |||||
Subsequent Event | Citibank N A | Senior Secured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument maturity date | Jul. 28, 2020 | ||||||
Debt instrument interest rate | 8.75% |
Long-Term Debt - 8.750% Senior
Long-Term Debt - 8.750% Senior Notes - Additional Information (Details) - USD ($) $ in Millions | Jan. 04, 2018 | Apr. 04, 2014 | Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
8.750% Senior Notes Due April 15, 2019 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 8.75% | 8.75% | |||
Debt instrument maturity date | Apr. 15, 2019 | ||||
8.750% Senior Notes Due April 15, 2019 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 8.75% | ||||
8.750% Senior Notes Due April 15, 2019 | LRAI | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 220 | ||||
Debt instrument interest rate | 8.75% | ||||
Debt instrument maturity date | Apr. 15, 2019 | ||||
11.25% Senior Notes | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 11.25% | 11.25% | |||
Debt instrument maturity date | Jan. 1, 2023 | ||||
Redemption price, percentage | 111.25% | 11.25% |
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 - Unsecured Debt | Apr. 15, 2016 |
2,017 | |
Debt Instrument Redemption [Line Items] | |
Redemption price, percentage | 104.375% |
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 ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | $ 2.3 | $ 1.2 |
Long-Term Debt - Securities Pur
Long-Term Debt - Securities Purchase Agreement and Second Lien Notes - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 02, 2016 | |
Debt Instrument [Line Items] | |||||
Gain on warrants | $ (3,088) | $ (568) | |||
Class A Voting Common Stock | |||||
Debt Instrument [Line Items] | |||||
Warrants to purchase common stock | 760,000 | ||||
Warrant liability | $ 5,100 | ||||
Second Lien Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | 38,000 | ||||
Repayment of principal second lien notes | $ 17,000 | $ 21,000 | |||
Early payment premium | $ 1,100 | ||||
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 | ||||
Cash paid for repurchase of debt instrument | $ 36,200 | ||||
Gain on repurchase of debt instrument | $ 28,500 | ||||
Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 12.00% | ||||
Debt instrument issuance and sale description | (i) up to $49.9 million 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”). | ||||
Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | Class A Voting Common Stock | |||||
Debt Instrument [Line Items] | |||||
Warrants to purchase 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 | ||||
Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | Maximum | Class A Voting Common Stock | |||||
Debt Instrument [Line Items] | |||||
Warrants to purchase common stock | 998,000 |
Long-Term Debt - Repurchase Fac
Long-Term Debt - Repurchase Facilitation Agreement - Additional Information (Details) - 8.750% Senior Notes Due April 15, 2019 | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 8.75% | 8.75% |
Debt instrument maturity date | Apr. 15, 2019 |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Components of Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax expense | ||
Federal | $ 59 | $ 5,057 |
State | 113 | 341 |
Total current income tax expense | 172 | 5,398 |
Deferred tax (benefit) expense | ||
Federal | (29,125) | 19,534 |
Foreign | 270 | |
State | (66) | (216) |
Total deferred income tax (benefit) expense | (29,191) | 19,588 |
Total income tax (benefit) expense | $ (29,019) | $ 24,986 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Dec. 22, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 15, 2017 |
Income Taxes [Line Items] | |||||
Statutory tax rate | 35.00% | ||||
Net operating loss carryforward | $ 99.4 | ||||
Net operating loss carryforward written off | $ 141.7 | ||||
Operating loss carryforwards annual installment amount | $ 1 | ||||
Depletion carryover amount | $ 8.7 | ||||
Income tax benefit | 6.3 | ||||
AMT credit carryovers | $ 2.4 | ||||
AMT expected to refund Year | 2,022 | ||||
Maximum percentage of deductible interest expense for tax of earnings before interest, taxes, depreciation, and amortization | 30.00% | ||||
Maximum percentage of deductible interest expense for tax of earnings before interest and taxes | 30.00% | ||||
Beginning date for deductible interest expense for tax of earnings before interest, taxes, depreciation, and amortization | Jan. 1, 2018 | ||||
Ending year for deductible interest expense for tax of earnings before interest, taxes depreciation, and amortization | 2,021 | ||||
Deductibility of interest expense for tax amortization period | 4 years | ||||
Beginning date for deductible interest expense for tax of earnings before interest taxes | Jan. 1, 2022 | ||||
Scenario Plan | |||||
Income Taxes [Line Items] | |||||
Statutory tax rate | 21.00% | ||||
Amended and Restated Purchase Agreement | Chambers | |||||
Income Taxes [Line Items] | |||||
Additional estimated annual utilization limit of net operating losses | $ 0.8 | ||||
Net operating loss carryforwards limitations on use description | The 2017 change creates an additional estimated annual utilization limit of approximately $0.8 million on our ability to utilize net operating losses generated subsequent to the 2016 change in ownership, but prior to the June, 2017 change in ownership. | ||||
Common Class A | |||||
Income Taxes [Line Items] | |||||
Sale of common stock, net of offering costs (in shares) | 13,800,000 | 13,800,000 | |||
Series A-1 Convertible Participating Preferred Stock | |||||
Income Taxes [Line Items] | |||||
Preferred stock, shares issued | 83,968 | 0 | |||
Series A-1 Convertible Participating Preferred Stock | Amended and Restated Purchase Agreement | Chambers | |||||
Income Taxes [Line Items] | |||||
Preferred stock, shares issued | 5,400 | ||||
Series A-2 Convertible Participating Preferred Stock | Amended and Restated Purchase Agreement | Chambers | |||||
Income Taxes [Line Items] | |||||
Preferred stock, shares issued | 74,600 |
Income Taxes - Difference betwe
Income Taxes - Difference between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Expected income tax benefit at statutory rate | $ (25,370) | $ (25,800) |
Permanent differences | (357) | 511 |
Remeasurement of deferred balances due to federal rate change | (4,140) | |
Net operating loss write down | 49,608 | |
State tax, tax effected | 97 | (20) |
Prior year differences | 779 | 311 |
Other | (28) | 376 |
Total income tax (benefit) expense | $ (29,019) | $ 24,986 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 20,874 | $ 20,442 |
Stock based compensation | 1,891 | 2,593 |
Intangibles | 351 | 682 |
Organizational expenses and other | 2,900 | 3,864 |
Total deferred tax assets | 26,016 | 27,581 |
Deferred tax liabilities: | ||
Oil and gas properties and other property and equipment, principally due to intangible drilling costs | (35,214) | (62,712) |
Loss on derivative instruments | 4,429 | 1,371 |
Other | (200) | |
Net deferred tax liabilities | $ (4,769) | $ (33,960) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | Nov. 03, 2017shares | Jun. 15, 2017$ / sharesRateshares | Dec. 22, 2016USD ($)$ / sharesshares | Aug. 02, 2016USD ($)aWellshares | Jul. 31, 2016shares | Dec. 31, 2017$ / sharesshares | Sep. 30, 2017shares | Dec. 31, 2017USD ($)$ / sharesRateshares | Dec. 31, 2016USD ($)$ / shares |
Class Of Stock [Line Items] | |||||||||
Preferred stock, authorized | 10,000,000 | 10,000,000 | |||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | |||||||
Minimum percentage of outstanding common stock beneficially own by approved holders | 10.00% | ||||||||
Proceeds from issuance of common stock, net of offering costs | $ | $ 72,807 | ||||||||
Total consideration paid | $ | $ 113,726 | $ 4,340 | |||||||
Juneau Energy, LLC | Brazos County | |||||||||
Class Of Stock [Line Items] | |||||||||
Purchase and sale agreement date | Aug. 2, 2016 | ||||||||
Undivided interest acquired in producing wells | 50.00% | ||||||||
Productive Oil Wells, Number of Wells | Well | 2 | ||||||||
Net mineral acres | a | 1,300 | ||||||||
Total consideration paid | $ | $ 5,500 | ||||||||
Senior Unsecured Notes | |||||||||
Class Of Stock [Line Items] | |||||||||
Unsecured notes, maturity period | 2 years | ||||||||
Debt instrument interest rate | 9.00% | 9.00% | |||||||
Battlecat and Marquis | |||||||||
Class Of Stock [Line Items] | |||||||||
Number of shares issued in connection with acquisition | 1,500,000 | ||||||||
Series A-1 Convertible Participating Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Preferred stock, par value | $ / shares | $ 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 | Rate | 200.00% | ||||||||
Threshold percentage of conversion price after June 15, 2019 but before June 15, 2020 | Rate | 175.00% | ||||||||
Threshold percentage of conversion price after June 15, 2020 | Rate | 150.00% | ||||||||
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 Dividends, Shares | 1,991 | 1,991 | |||||||
Series A-1 Convertible Participating Preferred Stock | Battlecat and Marquis | |||||||||
Class Of Stock [Line Items] | |||||||||
Number of shares issued | 5,400 | ||||||||
Preferred stock, par value | $ / shares | $ 0.001 | ||||||||
Series A-2 Convertible Participating Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Preferred Stock Dividends, Shares | 1,977 | ||||||||
Series A-2 Convertible Participating Preferred Stock | Battlecat and Marquis | |||||||||
Class Of Stock [Line Items] | |||||||||
Preferred stock, par value | $ / shares | $ 0.001 | ||||||||
Convertible participating preferred stock, number of shares issued | 74,600 | ||||||||
Series B Convertible Participating Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Preferred stock to common stock conversion basis | one-for-one | ||||||||
Shares issued upon conversion | 1 | ||||||||
Series B Convertible Participating Preferred Stock | Battlecat and Marquis | |||||||||
Class Of Stock [Line Items] | |||||||||
Number of shares issued in connection with acquisition | 1,184,632 | ||||||||
Series A Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Minimum percentage of outstanding preferred stock beneficially own by approved holders | 15.00% | ||||||||
Preferred stock, dividend rate, percentage | 9.00% | ||||||||
Shares issued, price per share | $ / shares | $ 975 | ||||||||
Preferred stock, increase in dividend rate for next succeeding dividend period | Rate | 5.00% | ||||||||
Preferred stock, additional increase in dividend rate for each successive dividend period | Rate | 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 | Rate | 20.00% | ||||||||
Class A Voting Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Number of shares issued | 2,684,632 | ||||||||
Preferred stock to common stock conversion basis | one-for-one | ||||||||
Shares issued upon conversion | 1 | ||||||||
Preferred stock, liquidation preference per share | $ / shares | $ 1,000 | ||||||||
Class A Voting Common Stock | Juneau Energy, LLC | Brazos County | |||||||||
Class Of Stock [Line Items] | |||||||||
Number of shares issued in connection with acquisition | 500,227 | ||||||||
Class A Voting Common Stock | 2016 Common Stock Offering | |||||||||
Class Of Stock [Line Items] | |||||||||
Number of shares issued | 13,800,000 | ||||||||
Shares issued, price per share | $ / shares | $ 5.75 | ||||||||
Proceeds from issuance of common stock, net of offering costs | $ | $ 71,800 | ||||||||
Class B Non-Voting Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, shares issued | 2,500 |
Stock-Based Compensation and _3
Stock-Based Compensation and Other Incentives - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2017 | Aug. 31, 2017 | Feb. 28, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expected life of stock options issued | 3 years 6 months | ||||
Stock options vesting periods | 3 years | ||||
Share-based compensation expiration period | 4 years | ||||
Stock options exercised | 0 | ||||
Unrecognized compensation cost related to stock options | $ 0 | ||||
Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expenses | $ 448,000 | ||||
Employee Stock Option | Lonestar Resources US Inc 2016 Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares issued | 2,200,000 | ||||
Number of shares available for issuance | 800,000 | ||||
Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock options vesting periods | 3 years | ||||
Number of RSUs or SARs granted | 740,409 | ||||
Stock-based compensation expenses | $ 1,315,000 | ||||
Unrecognized compensation cost | $ 2,725,000 | ||||
Restricted Stock Units (RSUs) | Employees | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of RSUs or SARs granted | 612,000 | ||||
Restricted Stock Units (RSUs) | Chairman of the Board of Directors | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of RSUs or SARs granted | 100,000 | ||||
Restricted Stock Units (RSUs) | Internal General Counsel | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of RSUs or SARs granted | 28,409 | ||||
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] | |||||
Stock options vesting periods | 3 years | ||||
Share-based compensation expiration period | 5 years | ||||
Number of RSUs or SARs granted | 700,000 | 700,000 | |||
Share-based compensation, Liability paid | $ 300,000 | ||||
Stock-based compensation expenses | 314,000 | ||||
Unrecognized compensation cost | $ 629,000 | ||||
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% | ||||
401 (K) Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of employer matching contribution | 100.00% | ||||
Employer's matching contributions | $ 147,000 | $ 155,000 | |||
401 (K) Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Employer's matching contribution of employee's compensation | 4.00% | ||||
Predecessor | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted average volatility rate of common share price | 58.60% | ||||
Cash dividend on common shares | $ 0 | ||||
Expected dividend yield | 0.00% |
Stock-Based Compensation and _4
Stock-Based Compensation and Other Incentives - Schedule of Outstanding Stock Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Outstanding Shares [Roll Forward] | ||
Exercised, Shares | 0 | |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 3 years 6 months | |
Lonestar Resources Limited 2012 Employee Share Option Plan and Lonestar Resources US Inc 2016 Employee Incentive Plan | ||
Outstanding Shares [Roll Forward] | ||
Outstanding at beginning of period, Shares | 191,750 | |
Canceled/expired, Shares | (116,750) | |
Forfeited, Shares | (75,000) | |
Outstanding at end of period, Shares | 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 | |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 3 months | |
Options vested and exercisable, Weighted Average Remaining Contractual Term (in years) | 3 months |
Stock-Based Compensation and _5
Stock-Based Compensation and Other Incentives - Schedule of Outstanding Restricted Stock Units (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Outstanding Shares [Roll Forward] | |
Granted, Shares | 740,409 |
Forfeited, Shares | (11,500) |
Outstanding at end of period, Shares | 728,909 |
Granted, Weighted Average Remaining Contractual Term (in years) | 3 years |
Forfeited, Weighted Average Remaining Contractual Term (in years) | 2 years 2 months 12 days |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 2 years 2 months 12 days |
Non-vested Shares [Roll Forward] | |
Granted, Shares | 740,409 |
Forfeited, Shares | (11,500) |
Outstanding non-vested options at end of period, Shares | 728,909 |
Granted, Weighted Average Fair Value per Share | $ / shares | $ 5.57 |
Forfeited, Weighted Average Fair Value per Share | $ / shares | 6 |
Outstanding non-vested options at ending of period, Weighted Average Fair Value per Share | $ / shares | $ 5.56 |
Outstanding non-vested options, Weighted Average Remaining Contractual Term (in years) | 2 years 2 months 12 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 2 months 12 days |
Stock-Based Compensation and _6
Stock-Based Compensation and Other Incentives - Schedule of Outstanding Stock Appreciation Rights (Details) - Stock Appreciation Rights (SARs) - $ / shares | 1 Months Ended | 12 Months Ended |
Feb. 28, 2017 | Dec. 31, 2017 | |
Outstanding Shares [Roll Forward] | ||
Granted, Shares | 700,000 | 700,000 |
Forfeited, Shares | (10,000) | |
Outstanding at end of period, Shares | 690,000 | |
Outstanding at end of period, Weighted Average Exercise Price Per Share | $ 7.20 | |
Granted, Weighted Average Exercise Price Per Share | 7.20 | |
Forfeited, 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 3 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 | $ 6 | |
Forfeited, Weighted Average Fair Value per Share | 5.17 | |
Outstanding non-vested options at ending of period, Weighted Average Fair Value per Share | 3.97 | |
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 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 3 months 18 days | |
Outstanding non-vested options, Weighted Average Remaining Contractual Term (in years) | 4 years 3 months 18 days |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Earnings Per Share [Abstract] | ||
Dilutive effect of earnings per share | $ 0 | $ 0 |
Reverse stock split | 1-for-2 reverse stock split upon Reorganization had occurred at the beginning of the year ended December 31, 2016: | |
Reverse stock split, conversion ratio | 2 | 2 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Unaudited Earnings Per Share (After Reorganization) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net loss per share of Class A voting common stock: | ||
Basic | $ (2.13) | $ (12.17) |
Diluted | $ (2.13) | $ (12.17) |
Weighted average Class A voting common stock outstanding: | ||
Basic | 22,252,149 | 8,106,931 |
Diluted | 22,252,149 | 8,106,931 |
Related Party Activities - Addi
Related Party Activities - Additional Information (Details) | Jan. 03, 2017USD ($) | Dec. 22, 2016USD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)shares | Jun. 30, 2017USD ($) | Oct. 26, 2016Director | Aug. 02, 2016USD ($)$ / sharesshares |
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 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 Form S-3 registration statement was filed with the Securities and Exchange Commission on November 7, 2017, and is effective. 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 | ||||||
Second Lien Notes | |||||||
Related Party Transaction [Line Items] | |||||||
Debt instrument face amount | $ 38,000,000 | ||||||
Repayment of principal second lien notes | $ 21,000,000 | $ 17,000,000 | |||||
Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | |||||||
Related Party Transaction [Line Items] | |||||||
Debt instrument interest rate | 12.00% | ||||||
Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | Maximum | |||||||
Related Party Transaction [Line Items] | |||||||
Debt instrument face amount | $ 49,900,000 | ||||||
Securities Purchase Agreement | 12% Senior Secured Second Lien Notes Due 2021 | Maximum | Class A Voting Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Warrants to purchase common stock | shares | 998,000 | ||||||
Leucadia | |||||||
Related Party Transaction [Line Items] | |||||||
Offering fee recorded as reduction to additional paid-in capital | $ 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% | ||||||
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 $25.0 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 $21.0 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 | $ 1,015,000 | $ 655,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Rentals Due | |
2,018 | $ 412 |
2,019 | 422 |
2,020 | 432 |
2,021 | 368 |
Total minimum lease payments | $ 1,634 |
Contingencies and Commitments -
Contingencies and Commitments - Additional Information (Details) | Jan. 19, 2018USD ($) | Mar. 29, 2018USD ($)Well | Feb. 28, 2018USD ($)Well | Dec. 31, 2017USD ($)Drilling_Rig | Dec. 31, 2016USD ($) |
Loss Contingencies [Line Items] | |||||
Building rent expense | $ 439,000 | $ 375,000 | |||
Relocation period | 2018-02 | ||||
Number of drilling rigs under contract | Drilling_Rig | 1 | ||||
Drilling Rig | |||||
Loss Contingencies [Line Items] | |||||
Operating lease expiration date | Jul. 19, 2018 | ||||
Aggregate drilling rate | $ 18,500 | ||||
Early termination fee percentage | 80.00% | ||||
Drilling rig termination fee description | The early termination fee equals 80% of the daily drilling rate times the number of days remaining on the contract term, which was approximately $2.7 million as of December 31, 2017. | ||||
Drilling rig remaining commitment | $ 2,700,000 | ||||
Drilling Rig | Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Aggregate drilling rate | $ 18,750 | $ 20,000 | |||
Drilling rig termination fee description | The early termination fee equals the greater of demobilization costs or $200,000, plus $200,000 for each undrilled well. | ||||
Number of wells to be drilled under additional rig contract | Well | 4 | ||||
Operating lease commencing month and year | 2018-04 | ||||
Early termination fee amount | $ 200,000 | ||||
Early termination fee amount for each undrilled well | $ 200,000 | ||||
Hydraulic Fracturing And Wireline Services | Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Operating lease expiration date | Dec. 31, 2018 | ||||
Early termination fee amount | $ 133,000 | ||||
Number of scheduled wells that is not hydraulically fractured as of termination date | Well | 15 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Millions | Jan. 04, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Jun. 15, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||||
Debt instrument expanded borrowing base | $ 160 | ||||
Maximum | |||||
Subsequent Event [Line Items] | |||||
Debt instrument expanded borrowing base | $ 160 | ||||
Minimum | |||||
Subsequent Event [Line Items] | |||||
Debt instrument expanded borrowing base | $ 112 | ||||
Subsequent Event | January 1, 2021 | |||||
Subsequent Event [Line Items] | |||||
Redemption price, percentage | 108.438% | ||||
Subsequent Event | January 1, 2022 | |||||
Subsequent Event [Line Items] | |||||
Redemption price, percentage | 105.625% | ||||
Subsequent Event | July 1, 2022 | |||||
Subsequent Event [Line Items] | |||||
Redemption price, percentage | 100.00% | ||||
11.25% Senior Notes | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Proceeds from issuance of senior notes | $ 250 | ||||
Debt instrument interest rate | 11.25% | 11.25% | |||
Senior notes maturity period | 2,023 | ||||
Debt instrument maturity date | Jan. 1, 2023 | ||||
Senior notes periodic payment terms | January 1 and July 1 of each year, | ||||
Senior notes beginning of first payment | Jul. 1, 2018 | ||||
Senior notes redemption date | Jan. 1, 2021 | ||||
Percentage of senior notes redeem from aggregate principal amount | 65.00% | ||||
Redemption price, percentage | 111.25% | 11.25% | |||
Senior notes redemption description | 11.250% Senior Notes originally issued remains outstanding immediately after such redemption and the redemption occurs within 180 days of the closing date of such equity offering. | ||||
Credit facility, maturity date | Oct. 16, 2018 | ||||
11.25% Senior Notes | Subsequent Event | Extended Maturity | |||||
Subsequent Event [Line Items] | |||||
Credit facility, maturity date | Jul. 28, 2020 | ||||
11.25% Senior Notes | Subsequent Event | January 1, 2021 | |||||
Subsequent Event [Line Items] | |||||
Percentage of senior notes redeem from aggregate principal amount | 100.00% | ||||
11.25% Senior Notes | Subsequent Event | Maximum | |||||
Subsequent Event [Line Items] | |||||
Percentage of senior notes redeem from aggregate principal amount | 35.00% | ||||
Senior notes redemption period | 180 days | ||||
8.750% Senior Notes Due April 15, 2019 | |||||
Subsequent Event [Line Items] | |||||
Debt instrument interest rate | 8.75% | 8.75% | |||
Debt instrument repurchase amount | $ 68.2 | ||||
Debt instrument maturity date | Apr. 15, 2019 | ||||
8.750% Senior Notes Due April 15, 2019 | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Debt instrument interest rate | 8.75% | ||||
Debt instrument repurchase amount | $ 244.4 | ||||
Payment of principal, interest and prepayment premium | 162 | ||||
Senior Secured Credit Facility | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Debt instrument expanded borrowing base | $ 160 |