Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Jun. 29, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Lonestar Resources US Inc. | |
Entity Central Index Key | 0001661920 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 24,944,891 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 1,142 | $ 3,137 |
Accounts receivable | ||
Oil, natural gas liquid and natural gas sales | 10,229 | 15,991 |
Joint interest owners and others, net | 836 | 1,310 |
Derivative financial instruments | 74,425 | 5,095 |
Prepaid expenses and other | 2,873 | 2,208 |
Total current assets | 89,505 | 27,741 |
Oil and gas properties, using the successful efforts method of accounting | ||
Proved properties | 1,083,692 | 1,050,168 |
Unproved properties | 77,162 | 76,462 |
Other property and equipment | 21,424 | 21,401 |
Less accumulated depreciation, depletion, amortization and impairment | (688,692) | (464,671) |
Property and equipment, net | 493,586 | 683,360 |
Accounts receivable – related party | 5,936 | 5,816 |
Derivative financial instruments | 25,434 | 1,754 |
Other non-current assets | 1,885 | 2,108 |
Total assets | 616,346 | 720,779 |
Current liabilities | ||
Accounts payable | 33,284 | 33,355 |
Accounts payable – related party | 381 | 189 |
Oil, natural gas liquid and natural gas sales payable | 15,257 | 14,811 |
Accrued liabilities | 23,049 | 26,905 |
Derivative financial instruments | 1,501 | 8,564 |
Current maturities of long-term debt | 513,259 | 247,000 |
Total current liabilities | 586,731 | 330,824 |
Long-term liabilities | ||
Long-term debt | 9,148 | 255,068 |
Asset retirement obligations | 6,888 | 7,055 |
Deferred tax liabilities, net | 0 | 931 |
Warrant liability | 0 | 129 |
Warrant liability – related party | 1 | 235 |
Derivative financial instruments | 1,896 | 1,898 |
Other non-current liabilities | 1,346 | 3,752 |
Total long-term liabilities | 19,279 | 269,068 |
Commitments and contingencies (Note 11) | ||
Stockholders' Equity | ||
Class A voting common stock, $0.001 par value, 100,000,000 shares authorized, 25,254,029 and 24,945,594 shares issued and outstanding, respectively | 142,655 | 142,655 |
Series A-1 convertible participating preferred stock, $0.001 par value, 102,585 and 100,328 shares issued and outstanding, respectively | 0 | 0 |
Additional paid-in capital | 175,978 | 175,738 |
Accumulated deficit | (308,297) | (197,506) |
Total stockholders' equity | 10,336 | 120,887 |
Total liabilities and stockholders' equity | $ 616,346 | $ 720,779 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 25,254,029 | 24,945,594 |
Common stock, shares outstanding (in shares) | 25,254,029 | 24,945,594 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 102,585 | 100,328 |
Preferred stock, shares outstanding (in shares) | 102,585 | 100,328 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Revenues | $ 37,009 | $ 40,741 |
Expenses | ||
Lease operating and gas gathering | 9,788 | 7,710 |
Production and ad valorem taxes | 2,369 | 2,291 |
Depreciation, depletion and amortization | 24,354 | 17,970 |
Loss on sale of oil and gas properties | 0 | 32,894 |
Impairment of oil and gas properties | 199,908 | 0 |
General and administrative | 2,881 | 4,379 |
Other | (223) | (2) |
Total expenses | 239,077 | 65,242 |
Loss from operations | (202,068) | (24,501) |
Other income (expense) | ||
Interest expense | (11,610) | (10,656) |
Change in fair value of warrants | 363 | (102) |
Gain (loss) on derivative financial instruments | 101,169 | (36,238) |
Total other income (expense) | 89,922 | (46,996) |
Loss before income taxes | (112,146) | (71,497) |
Income tax benefit | 1,355 | 12,933 |
Net Loss | (110,791) | (58,564) |
Preferred stock dividends | (2,257) | (2,065) |
Net loss attributable to common stockholders | $ (113,048) | $ (60,629) |
Net loss per common share | ||
Basic (in dollars per share) | $ (4.52) | $ (2.45) |
Diluted (in dollars per share) | $ (4.52) | $ (2.45) |
Weighted average common shares outstanding | ||
Basic (in shares) | 25,003,977 | 24,698,372 |
Diluted (in shares) | 25,003,977 | 24,698,372 |
Oil sales | ||
Revenues | ||
Revenues | $ 29,990 | $ 33,584 |
Natural gas liquid sales | ||
Revenues | ||
Revenues | 2,599 | 3,393 |
Natural gas sales | ||
Revenues | ||
Revenues | $ 4,420 | $ 3,764 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Class A Voting Common Stock | Series A-1 Preferred Stock | Additional Paid-in Capital | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2018 | 24,645,825 | 91,784 | |||
Beginning balance at Dec. 31, 2018 | $ 222,547 | $ 142,655 | $ 174,379 | $ (94,487) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Payment-in-kind dividends (in shares) | 2,065 | ||||
Stock-based compensation (in shares) | 127,818 | ||||
Stock-based compensation | 627 | 627 | |||
Net income (loss) | (58,564) | (58,564) | |||
Ending balance (in shares) at Mar. 31, 2019 | 24,773,643 | 93,849 | |||
Ending balance at Mar. 31, 2019 | 164,610 | $ 142,655 | 175,006 | (153,051) | |
Beginning balance (in shares) at Dec. 31, 2019 | 24,945,594 | 100,328 | |||
Beginning balance at Dec. 31, 2019 | 120,887 | $ 142,655 | 175,738 | (197,506) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Payment-in-kind dividends (in shares) | 2,257 | ||||
Stock-based compensation (in shares) | 308,435 | ||||
Stock-based compensation | 240 | 240 | |||
Net income (loss) | (110,791) | (110,791) | |||
Ending balance (in shares) at Mar. 31, 2020 | 25,254,029 | 102,585 | |||
Ending balance at Mar. 31, 2020 | $ 10,336 | $ 142,655 | $ 175,978 | $ (308,297) |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (110,791) | $ (58,564) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Accretion of asset retirement obligations | 86 | 79 |
Depreciation, depletion and amortization | 24,268 | 17,891 |
Stock-based compensation | (2,022) | 533 |
Deferred taxes | (1,376) | (12,922) |
(Gain) loss on derivative financial instruments | (101,169) | 36,238 |
Settlements of derivative financial instruments | 1,096 | 1,309 |
Impairment of oil and gas properties | 199,908 | 0 |
Gain on disposal of property and equipment | 83 | (17) |
Loss on sale of oil and gas properties | 0 | 32,894 |
Non-cash interest expense | 768 | 699 |
Change in fair value of warrants | (363) | 102 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 6,117 | (2,016) |
Prepaid expenses and other assets | (374) | 304 |
Accounts payable and accrued expenses | (2,396) | (6,704) |
Net cash provided by operating activities | 13,835 | 9,826 |
Cash flows from investing activities | ||
Acquisition of oil and gas properties | (816) | (2,352) |
Development of oil and gas properties | (34,753) | (29,137) |
Proceeds from sale of oil and gas properties | 317 | 12,107 |
Purchases of other property and equipment | (524) | (2,916) |
Net cash used in investing activities | (35,776) | (22,298) |
Cash flows from financing activities | ||
Proceeds from borrowings | 28,000 | 30,000 |
Payments on borrowings | (8,054) | (19,116) |
Net cash provided by financing activities | 19,946 | 10,884 |
Net decrease in cash and cash equivalents | (1,995) | (1,588) |
Cash and cash equivalents, beginning of the period | 3,137 | 5,355 |
Cash and cash equivalents, end of the period | 1,142 | 3,767 |
Supplemental information: | ||
Cash paid for interest | 3,957 | 16,743 |
Non-cash investing and financing activities: | ||
Change in asset retirement obligation | (253) | (522) |
Change in liabilities for capital expenditures | $ (1,040) | $ 730 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Organization and Nature of Operations Lonestar Resources US Inc. (“Lonestar” or the "Company") is a Delaware corporation whose common stock is listed and traded on the Nasdaq Global Select Market under the symbol “LONE”. Lonestar is an independent oil and natural gas company focused on the exploration, development and production of unconventional oil, natural gas liquids and natural gas in the Eagle Ford Shale play in South Texas. Interim Financial Statements The accompanying unaudited condensed consolidated financial statements of Lonestar Resources US Inc., and its subsidiaries have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These financial statements and the notes thereto should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2019 filed on April 13, 2020 (the “Form 10-K”). Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “Company” or “Lonestar,” refer to Lonestar Resources US Inc. and its subsidiaries. The results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for the year. In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of our consolidated financial position as of March 31, 2020 and our consolidated results of operations for the three months ended March 31, 2020 and 2019 . Risks and Uncertainties The COVID-19 pandemic has caused a rapid and precipitous drop in demand for oil, which in turn has caused oil prices to plummet since the first week of March 2020, negatively affecting the Company’s cash flow, liquidity and financial position. These events have worsened an already deteriorated oil market that resulted from the early-March 2020 failure by the group of oil producing nations known as OPEC+ to reach an agreement over proposed oil production cuts. Moreover, the uncertainty about the duration of the COVID-19 pandemic has caused storage constraints in the United States resulting from over-supply of produced oil, which has significantly decreased our realized oil prices in the second quarter of 2020 and potentially beyond. Oil prices are expected to continue to be volatile as a result of these events and the ongoing COVID-19 outbreak, and as changes in oil inventories, oil demand and economic performance are reported. The Company cannot predict when oil prices will improve and stabilize. The current pandemic and uncertainty about its length and depth in future periods has caused the realized oil prices the Company has received since February 2020 to be significantly reduced, adversely affecting its operating cash flow and liquidity. Although the Company has reduced its 2020 capital expenditures budget, the lower levels of cash flow may require it to shut-in production that has become uneconomic in addition to shut-ins of production that the Company performed during the second quarter of 2020 (see below). The COVID-19 pandemic is rapidly evolving, and the ultimate impact of this pandemic is highly uncertain and subject to change. The extent of the impact of the COVID-19 pandemic on the Company's operational and financial performance will depend on future developments, including the duration and spread of the pandemic, its severity, the actions to contain the disease or mitigate its impact, related restrictions on travel, and the duration, timing and severity of the impact on domestic and global oil demand. In response to these developments, the Company has implemented the following operational and financial measures: • Reduced budgeted 2020 capital spending from $80 - $85 million to $55 - $65 million , or 27% at midpoint; • Deferred its 2020 drilling program; • Implemented cost-reduction measures including negotiations reducing rates for water disposal, chemicals, rentals, and workovers; • Shut in or stored approximately 4,700 BOE per day of production during late-April and all of May 2020, primarily at the Company's Central Eagle Ford Area. These shut-in wells back online during the first week of June. • Entered into additional commodities derivatives in March 2020 to hedge an additional 2,000 Bbls of oil per day at an average swap price of $41.00 per Bbl and 27,500 Mcf of natural gas per day at an average price of $2.36 per Mcf in 2021. The Company's current oil hedge position covers 7,498 Bbls per day for the second quarter of 2020, 7,565 Bbls per day for the second half of 2020, and 7,000 Bbls per day for 2021. The Company's current natural gas hedge position covers 20,000 Mcf per day for the remaining three quarters of 2020, and 27,500 Mcf per day for 2021. Recent Developments The Company's present level of indebtedness and the current commodity price environment present challenges to its ability to comply with the covenants in its Credit Facility (see Note 7. Long-Term Debt ) over the next twelve months and therefore substantial doubt exists that the Company will be able to continue as a going concern. As of March 31, 2020, the Company had total indebtedness of $522.4 million , including $250.0 million of Senior Notes due 2023 (the “ 11.25% Senior Notes"), $267.0 million under the Company's Credit Facility and $8.9 million under the Company's building loan. As of July 2, 2020, the Company's Credit Facility is drawn to $285.0 million and is subject to a $60.4 million borrowing-base deficiency due to the terms of the Forbearance Agreement (see below). The Company did not satisfy the consolidated current ratio covenant under the Credit Facility as of the March 31, 2020 measurement date and did not make the July 1, 2020 interest payment under the 11.25% Senior Notes. Such failures represent events of default under our revolving credit facility, and the missed interest payment will represent an event of default under the 11.25% Senior Notes if not cured within 30 days. The Company received a forbearance from the lenders under the Credit Facility until July 31, 2020 for the defaults in the consolidated current ratio covenant as of the March 31, 2020 measurement date and the missed interest payment pursuant to the Forbearance Agreement. Despite the forbearance, the defaults under the Credit Facility are continuing, and will continue, absent a waiver or amendment from the Credit Facility lenders. Forbearance Agreement On July 2, 2020, the Company entered into a Forbearance Agreement, Fourteenth Amendment, and Borrowing Base Agreement with Citibank, N.A., as administrative agent and the lenders party thereto (the “Forbearance Agreement”) with respect to the Credit Facility. Pursuant to the Forbearance Agreement, among other things, (i) the lenders under the Credit Facility agreed to refrain from exercising their rights and remedies under the Credit Facility and related loan documents with respect to certain defaults until July 31, 2020, (ii) the borrowing base was redetermined to $225 million from $286 million , (iii) all proceeds of dispositions and terminations or liquidations of swap agreements shall be used to repay the Credit Facility and shall automatically reduce the borrowing base by the amount of the repayment and (iv) certain exceptions to the covenant restriction on investments shall no longer be available. The rights of the Credit Facility lenders to exercise rights and remedies resulted from the Company's failure to comply with the current ratio with respect to the quarter ended March 31, 2020 and the defaults expected with respect to the quarter ending June 30, 2020 under the current ratio and the leverage ratio covenants, and the default with respect to the failure to make the interest payment due on July 1, 2020, under the 11.25% Senior Notes. The Forbearance Agreement can be terminated by the lenders upon (i) the occurrence of any default or event of default under the Credit Facility other than those disclosed above, (ii) the failure of the Company to comply with any of the terms and requirements of the Forbearance Agreement, (iii) the breach of any representation or warranty, (iv) the exercise of any rights by other debt holders relating to foreclosure or acceleration (including acceleration of the 11.25% Senior Notes in the event of default) and (v) the commencement of any bankruptcy proceeding with respect to any loan party. Additionally, the Forbearance Agreement can be terminated if the Company fails to deliver a detailed restructuring proposal to the lenders by July 16, 2020. If the Forbearance Agreement terminates and any then-current and ongoing events of default have not been waived or cured, the lenders will be able to accelerate the loans and pursue their rights and remedies. Borrowing Base Redetermination As of March 31, 2020, the borrowing base and lender commitments for the Credit Facility were $290 million . However, subsequent to the end of the first quarter of 2020, the borrowing base was lowered to $286 million on June 11, 2020 as part of the Thirteenth Amendment (see Note 7. Long-Term Debt ), and the borrowing base was later redetermined to $225 million from $286 million pursuant to the Forbearance Agreement on July 2, 2020, which created a deficiency between the outstanding amount borrowed under the Company's revolving credit facility and the borrowing base. The outstanding balance under the Credit Facility was $285 million as of July 2, 2020 which represents a borrowing deficiency of $60.4 million . The Company is obligated to pay the deficiency within 60 days after July 2, 2020 due to the Credit Facility being in a state of default at the time of the deficiency, as noted below. Going Concern The Company has concluded that these circumstances create substantial doubt regarding its ability to continue as a going concern. However, these consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty and instead have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company does not anticipate maintaining compliance with the consolidated current ratio covenant under its Credit Facility over the next twelve months, and is evaluating the available financial alternatives, including obtaining acceptable alternative financing as well as seeking additional waivers, forbearances or amendments to the covenants or other provisions of the Credit Facility to address any existing or future defaults and have engaged financial and legal advisors to assist the Company. If the Company is unable to reach an agreement with its lenders or find acceptable alternative financing, the lenders of the Credit Facility may choose to accelerate repayment, in addition to the $60.4 million due from the current borrowing base deficiency noted above, which in turn may result in an event of default and an acceleration of the 11.25% Senior Notes, which have a $14.1 million interest payment that was due and unpaid on July 1, 2020 (see below). If the Company's lenders or its noteholders accelerate the payment of amounts outstanding under our Credit Facility or the 11.25% Senior Notes, respectively, the Company does not currently have sufficient liquidity to repay such indebtedness and would need additional sources of capital to do so. The Company cannot provide any assurances that it will be successful in any restructuring of existing debt obligations or obtaining capital sufficient to fund the refinancing of its outstanding indebtedness or to provide sufficient liquidity to meet its operating needs. If the Company is unsuccessful in its efforts to restructure and obtain new financing, it may be necessary for it to seek protection from creditors under Chapter 11 of the U.S. Bankruptcy Code (“Chapter 11”), or an involuntary petition for bankruptcy may be filed against it. Impairment of Long-Lived Assets The carrying value of long-lived assets and certain identifiable intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When it is determined that the estimated future net cash flows of an asset will not be sufficient to recover its carrying amount, an impairment loss must be recorded to reduce the carrying amount to its estimated fair value. Judgments and assumptions are inherent in management’s estimate of undiscounted future cash flows and an asset’s fair value. These judgments and assumptions include such matters as the estimation of oil and gas reserve quantities, risks associated with the different categories of oil and gas reserves, the timing of development and production, expected future commodity prices, capital expenditures, production costs, and appropriate discount rates. The Company evaluates impairment of proved and unproved oil and gas properties on a region basis. On this basis, certain regions 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 oil and gas properties of $199.9 million for the three months ended March 31, 2020, of which $199.0 million was proved and $0.9 million was unproved. The impairment was the result of removing development of PUD and probable reserves from future net cash flows as the Company cannot assure that they will be developed going forward in light of continued depressed commodity prices and uncertainty regarding the Company's liquidity situation. If pricing remains depressed, it is reasonably likely that the Company may have to record impairment of its oil and gas properties in the future. CAREs Act On March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to provide certain taxpayer relief as a result of the COVID-19 pandemic. The CARES Act included several favorable provisions that impacted income taxes, primarily the modified rules on the deductibility of business interest expense for 2019 and 2020, a five-year carryback period for net operating losses generated after 2017 and before 2021, and the acceleration of refundable alternative minimum tax credits. The CARES Act did not materially impact the Company's effective tax rate for the three months ended March 31, 2020. The Company has applied for, and has received, funds under the Paycheck Protection Program after the period end in the amount of $2.2 million . The application for these funds requires the Company to, in good faith, certify that the current economic uncertainty made the loan request necessary to support the ongoing operations of the Company. This certification further requires the Company to take into account our current business activity and our ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. The receipt of these funds, and the forgiveness of the loan attendant to these funds, is dependent on the Company having initially qualified for the loan and qualifying for the forgiveness of such loan based on our future adherence to the forgiveness criteria. Net Loss per Common Share The two-class method is utilized to compute earnings per common share as our Class A Participating Preferred Stock (the "Preferred Stock") is considered a participating security. Under the two-class method, losses are allocated only to those securities that have a contractual obligation to share in the losses of the Company. The Preferred Stock is not obligated to absorb Company losses and accordingly is not allocated losses. Net income attributable to common stockholders is allocated between common stock and participating securities based on the weighted average number of common shares and participating securities outstanding for the period. Basic earnings per share is computed by dividing the allocated net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share is computed similarly except that the denominator is increased to include dilutive potential common shares. Potential common shares consist of warrants, equity compensation awards and Preferred Stock. In certain circumstances adjustment to the numerator is also required for changes in income or loss resulting from the potential common shares. Basic weighted average common shares exclude shares of non-vested restricted stock. As these restricted shares vest, they will be included in the shares outstanding used to calculate basic earnings per share. For the periods presented, there were no differences between the basic and diluted weighted average common shares. The following securities could potentially dilute earnings per share in the future, but were excluded from the computation of diluted net loss per share, as their effect would have been antidilutive: Three Months Ended March 31, 2020 2019 Preferred stock 16,725,467 15,301,157 Warrants 760,000 760,000 Stock appreciation rights 1,010,000 1,010,000 Restricted stock units 1,925,366 834,397 Recent Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions to ease financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) or another reference rate to alternative reference rates. The amendments in this ASU are effective beginning on March 12, 2020, and an entity may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related footnote disclosures. Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The objective of ASU 2019-12 is to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and to provide more consistent application to improve the comparability of financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and early adoption is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related footnote disclosures. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Pirate Divestiture In March 2019, Lonestar completed the divestiture of its Pirate assets in Wilson County for an adjusted cash purchase price of $11.5 million , after closing adjustments, to a private third-party. The assets were comprised of 3,400 net undeveloped acres, six producing wells, held seven proved undeveloped locations as of the closing date, and were producing approximately 200 BOE/d. The Company recognized a loss of $33.5 million during the first quarter of 2019 in conjunction with the sale of the assets. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Commodity Derivative Instruments Lonestar 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 entering into 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. Inherent in Lonestar'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 non-performance by the Company’s counterparty to a contract. The Company does not currently require cash collateral from any of its counterparties nor does its counterparties require cash collateral from the Company. As of March 31, 2020 , the Company had no open physical delivery obligations. The following table summarizes Lonestar's commodity derivative contracts as of March 31, 2020 : Contract Volumes Weighted Commodity Type Period Range (1) (Bbls/Mcf per day) Average Price Oil - WTI Swaps Apr - June 2020 $48.90 - $65.56 7,498 $ 56.50 Oil - WTI Swaps July - Dec 2020 51.60 - 65.56 7,565 57.38 Oil - WTI Swaps Jan - Dec 2021 40.95 - 56.50 7,000 50.40 Natural Gas - Henry Hub Swaps Apr - Dec 2020 2.38 - 2.80 20,000 2.55 Natural Gas - Henry Hub Swaps Jan - Dec 2021 2.32 - 2.39 27,500 2.36 (1) Ranges presented for fixed-price swaps and basis swaps represent the lowest and highest fixed prices of all open contracts for the period presented. As of March 31, 2020 , 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. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Disaggregation of Revenue Operating revenues are comprised of sales of crude oil, NGLs and natural gas. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied. The Company recognizes revenue when control has been transferred to the customer, generally at the time commodities reach an agreed-upon delivery point. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products and is generally based upon a negotiated formula, list or fixed price based on a market index. Typically, the Company sells its products directly to customers generally under agreements with payment terms less than 30 days. The following table summarizes our revenues by product type for the three months ended March 31, 2020 and 2019: In thousands Three Months Ended March 31, 2020 2019 Oil $ 29,990 $ 33,584 NGLs 2,599 3,393 Natural gas 4,420 3,764 Total revenues $ 37,009 $ 40,741 As of March 31, 2020 and December 31, 2019 the accounts receivable balance representing amounts due or billable under the terms of contracts with purchasers was $10.2 million and $16.0 million , respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. ASC 820 prioritizes the inputs used in measuring fair value into the following fair value hierarchy: • Level 1 – Quoted prices for identical assets or liabilities in active markets. • Level 2 – Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – Unobservable inputs for the asset or liability. The fair value input hierarchy level to which an asset or liability measurement falls in its entirety is determined based on the lowest level input that is significant to the measurement in its entirety. The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 , for each fair value hierarchy level: Fair Value Measurements Using In thousands Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total March 31, 2020 Assets Derivative financial instruments $ — $ 99,859 $ — $ 99,859 Liabilities: Derivative financial instruments — (3,397 ) — (3,397 ) Warrant — — (1 ) (1 ) Stock-based compensation (77 ) — (27 ) (104 ) Total $ (77 ) $ 96,462 $ (28 ) $ 96,357 December 31, 2019 Assets: Derivative financial instruments $ — $ 6,849 $ — $ 6,849 Liabilities: Derivative financial instruments — (10,462 ) — (10,462 ) Warrant — — (364 ) (364 ) Stock-based compensation (1,792 ) — (573 ) (2,365 ) Total $ (1,792 ) $ (3,613 ) $ (937 ) $ (6,342 ) Level 3 Fair Value Measurements The table below sets forth a summary of changes in the fair value of the Company’s Level 3 liabilities for the three months ended March 31, 2020 : In thousands Warrant Stock-Based Compensation Total Balance as of December 31, 2019 $ (364 ) $ (573 ) $ (937 ) Unrealized gains 363 546 909 Balance as of March 31, 2020 $ (1 ) $ (27 ) $ (28 ) Other fair value measurements The book values of cash and cash equivalents, accounts receivable and accounts payable, approximate fair value due to the short-term nature of these instruments. The carrying value of the Credit Facility (as defined in Note 7. below) approximates fair value since it is subject to a short-term floating interest rate that approximates the rate available to the Company. The fair value of the 11.25% Senior Notes (as defined in Note 8. below) was approximately $ 64.1 million as of March 31, 2020 and is considered a Level 3 liability, as they are based on market transactions that occur infrequently as well as internally generated inputs. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following as of the dates indicated: In thousands March 31, December 31, Accrued interest – 11.25% Senior Notes $ 7,031 $ 14,063 Accrued well costs 12,387 8,932 Bonus payable 609 2,353 Other 3,022 1,557 Total accrued liabilities $ 23,049 $ 26,905 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following long-term debt obligations were outstanding as of the dates indicated: In thousands March 31, December 31, Senior Secured Credit Facility $ 267,000 $ 247,000 11.25% Senior Notes due 2023 250,000 250,000 Mortgage debt 8,877 8,931 Other 271 271 Total long-term debt 526,148 506,202 Unamortized discount (3,094 ) (3,375 ) Unamortized debt issuance costs (647 ) (759 ) Total net of debt issuance costs 522,407 502,068 Less current obligations (513,259 ) (247,000 ) Long-term debt $ 9,148 $ 255,068 Senior Secured Credit Facility In July 2015, through its subsidiary, Lonestar Resources America, Inc. ("LRAI"), the Company entered into 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”), which has a maturity date of November 15, 2023. As of March 31, 2020, $267.0 million was borrowed under the Credit Facility, and the weighted average interest rate on borrowings under the Credit Facility for the quarter was 5.30% . Borrowing availability was $22.6 million as of March 31, 2020, which reflects $0.4 million of letters of credit outstanding. 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% ( 0.5% following the Thirteenth Amendment (as defined below)) based on the unused portion of the borrowing base under the Credit Facility. As of March 31, 2020, the borrowing base and lender commitments for the Credit Facility was $290 million . The borrowing base was lowered to $286 million on June 11, 2020 as part of the Thirteenth Amendment. The borrowing base was further lowered to $225 million from $286 million pursuant to the Forbearance Agreement on July 2, 2020, creating a deficiency between the outstanding amount borrowed under our revolving credit facility and the borrowing base. The outstanding balance under our credit facility was $285 million as of July 2, 2020 which represents a borrowing deficiency of $60.4 million . We are obligated to pay the deficiency within 60 days after July 2, 2020, due to the Credit Facility's status of default (see below). Borrowings under the Credit Facility, at the Company'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 LIBOR1 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 1.0% to 2.0% ( 2.0% to 3.5% following the Thirteenth Amendment) for ABR loans and from 2.0% to 3.0% ( 3.0% to 4.5% following the Thirteenth Amendment) for adjusted LIBO rate loans. As the Credit Facility is in a state of default, 2.0% incremental default interest would typically be due but is currently not being charged as part of the terms of the Forbearance Agreement (see below). Subject to certain permitted liens, the Company's obligations under the Credit Facility are required to be 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 100% following the Thirteenth Amendment). The Credit Facility contains certain financial performance covenants, as defined in the Credit Facility, including the following: • A maximum debt to EBITDAX ratio of 4.0 to 1.0, and • A current ratio of not less than 1.0 to 1.0. The Company also was not in compliance with the terms of the Credit Facility as of December 31, 2019 because it did not satisfy the consolidated current ratio at those times and the audit report prepared by its auditors with respect to the financial statements in the 2019 Form 10-K included an explanatory paragraph expressing uncertainty as to the Company's ability to continue as a "going concern." The lenders waived the current ratio default with respect to December 31, 2019. The Company received a forbearance until July 31, 2020 for the defaults in the consolidated current ratio covenant as of the March 31, 2020 measurement date and the missed interest payment under the 11.25% Senior Notes pursuant to the Forbearance Agreement. Despite the forbearance, the defaults under the Credit Facility are continuing, and will continue, absent a waiver from the lenders. The Company was not in compliance with the terms of the Credit Facility as of May 15, 2020, because it did not timely deliver its financial statements with respect to the fiscal quarter ended March 31, 2020. Such failure represented a default under the Credit Facility which the lenders waived pursuant to the Thirteenth Amendment. As noted above, the borrowing base was redetermined to $225 million from $286 million pursuant to the Forbearance Agreement on July 2, 2020, which created a deficiency between the outstanding amount borrowed under our revolving credit facility and the borrowing base. The outstanding balance under the Company's Credit Facility was $285 million as of July 2, 2020 which represents a borrowing deficiency of $60 million . The Company is obligated to pay the deficiency within 60 days after July 2, 2020. Waiver and Eleventh Amendment Effective April 7, 2020, the Company entered into the Waiver and Eleventh Amendment (the "Waiver") to waive events of default arising from its failure to comply with the consolidated current ratio as of December 31, 2019, to timely provide audited financial statements and to provide financial statements that are not subject to any “going concern” or like qualification or exception for the fiscal year ended December 31, 2019. As there was no guarantee that the Company's lenders would agree to waive events of default or potential events of default in the future, the amounts outstanding under the Credit Facility as of December 31, 2019 were classified as current in the accompanying 2019 Condensed Consolidated Balance Sheet. Twelfth Amendment Effective May 8, 2020, the Company entered into the Twelfth Amendment to Credit Agreement (the “ Twelfth Amendment”), to allow the Company to accept proceeds of up to $2.2 million from an unsecured loan applied for under the Coronavirus Aid, Relief and Economic Security Act (as discussed further in Note 1). Waiver and Thirteenth Amendment Effective June 11, 2020, the Company entered into the Waiver and Thirteenth Amendment to Credit Agreement (the "Thirteenth Amendment") which, among other things, (i) waived any default or event of default arising from its failure to provide timely quarterly financial statements for the three months ended March 31, 2020; (ii) redetermined the borrowing base to $286 million from $290 million ; (iii) set the next borrowing base redetermination to be on or around July 1, 2020 (and in any event, no later than July 31, 2020), (iv) amended the borrowing base utilization grid used in the applicable margin, as noted above and (v) until the July 1, 2020 redetermination, restricted the Company and its subsidiaries’ ability to incur debt with respect to, among other items, capital leases and permitted senior debt, grant liens to secure other obligations, pay dividends on LRAI’s preferred stock and make certain investments. As there is no guarantee that the Company's lenders will agree to waive events of default or potential events of default in the future, the amounts outstanding under the Credit Facility as of March 31, 2020 were classified as current in the accompanying Condensed Consolidated Balance Sheet. Forbearance Agreement and Fourteenth Amendment On July 2, 2020, the Company entered into a Forbearance Agreement, Fourteenth Amendment, and Borrowing Base Agreement with Citibank, N.A., as administrative agent and the lenders party thereto (the “Forbearance Agreement”) with respect to the Credit Facility. Pursuant to the Forbearance Agreement, among other things, (i) the lenders under the Credit Facility agree to refrain from exercising their rights and remedies under the Credit Facility and related loan documents with respect to certain defaults until July 31, 2020, (ii) the borrowing base was redetermined to $225 million from $286 million , (iii) all proceeds of dispositions and terminations or liquidations of swap agreements shall be used to repay the Credit Facility and shall automatically reduce the borrowing base by the amount of the repayment and (iv) certain exceptions to the covenant restriction on investments shall no longer be available. The rights of the lenders to exercise rights and remedies resulted from our failure to comply with the current ratio with respect to the quarter ended March 31, 2020 and the defaults expected with respect to the quarter ending June 30, 2020, under the current ratio and the leverage ratio covenants, and the default with respect to the failure to make the interest payment due on July 1, 2020, under the 11.25% Senior Notes. The Forbearance Agreement can be terminated by the lenders upon (i) the occurrence of any default or event of default under the Credit Facility other than those disclosed, (ii) the failure of the Company to comply with any of the terms and requirements of the Forbearance Agreement, (iii) the breach of any representation or warranty, (iv) the exercise of any rights by other debt holders relating to foreclosure or acceleration and (v) the commencement of any bankruptcy proceeding with respect to any loan party. Additionally, the Forbearance Agreement can be terminated if the Company fails to deliver a detailed restructuring proposal to the lenders by July 16, 2020. If the Forbearance Agreement terminates and any then-current and ongoing events of default have not been waived or cured, the lenders will be able to accelerate the loans and pursue their rights and remedies. 11.25% Senior Notes In January 2018, the Company issued $250 million of 11.25% Senior Notes to U.S.-based institutional investors. The net proceeds of $244.4 million were used to fully retire the Company’s 8.75% Senior Notes, which included principal, interest and a prepayment premium of approximately $162 million . The remaining net proceeds were used to reduce borrowings under the Credit Facility. The 11.25% Senior Notes mature on January 1, 2023, and bear interest at the rate of 11.25% per year, payable on January 1 and July of each year. 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 11.25% Senior Notes with an amount of cash not greater than the net cash proceeds of certain equity offerings at a redemption price equal to 111.25% of the principal amounts redeemed, plus accrued and unpaid interest, provided that at least 65% of the aggregate principal amount of 11.25% 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 11.25% 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 11.25% 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 Company did not make its interest payment on the 11.25% Senior Notes that was due on July 1, 2020 of approximately $14.1 million . The Company has 30 days to cure the default before the holders of the 11.25% Senior Notes or the trustee may be able to accelerate payment. The missed interest payment is a current event of default under the Credit Facility. The Company has entered into the Forbearance Agreement which provides that, among other things, the lenders under the Credit Facility have agreed to forbear the Company’s default of the interest payment until July 31, 2020. However, the default under the Credit Facility has not been waived and still exists, and the Forbearance Agreement can be terminated if the Company fails to deliver a detailed restructuring proposal to the lenders by July 16, 2020. Accordingly, the amounts outstanding under the 11.25% Senior Notes as of March 31, 2020 were classified as current in the accompanying Condensed Consolidated Balance Sheet. 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 merge, or sell substantially all of the Company’s assets. The indenture also contains cross-default provisions for defaults of the Company's other debt instruments, including the Credit Facility, caused by payment default or events which cause the acceleration of repayment prior to the stated maturity of such instrument. The Company cannot provide any assurances that it will be successful in restructuring existing debt obligations or in obtaining capital sufficient to fund the refinancing of its outstanding indebtedness or to provide sufficient liquidity to meet its operating needs. If the Company is unsuccessful in its efforts to restructure and obtain new financing, it may be necessary for the Company to seek protection from creditors under Chapter 11 of the U.S. Bankruptcy Code (“Chapter 11”), or an involuntary petition for bankruptcy may be filed against the Company. |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Series A Preferred Stock Dividends Holders of Series A-1 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-1 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 (one of which remain as of March 31, 2020), 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% per annum for the next succeeding dividend period and then an additional 1% for each successive dividend period, up to a maximum Dividend Rate of 20% per annum, until the Company pays dividends at such increased rate fully in cash for two consecutive quarters. Starting with the third quarter of 2017 and through the fourth quarter of 2019, the Company elected the PIK Option for the Class A-1 Preferred Stock dividend payment, which resulted in the issuance of 20,328 additional shares of Series A-1 Preferred Stock. During the first quarter of 2020, the Company also elected the PIK Option, which resulted in the issuance of 2,257 additional shares of Series A-1 Preferred Stock. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Restricted Stock Units Lonestar grants awards of restricted stock units ("RSUs") to employees and directors as part of its long-term compensation program. For the three months ended March 31, 2020 and 2019 , the Company recognized $ (1.3) million and $ 0.7 million, respectively, of stock-based compensation (benefit) expense for RSUs. The liability for RSUs on the accompanying consolidated balance sheet as of March 31, 2020 was $ 0.1 million. As of March 31, 2020 , there was $ 0.4 million of unrecognized compensation expense related to non-vested RSU grants. This unrecognized compensation cost is expected to be recognized over a weighted-average period of 1.7 years. The fair value of RSU grants that vested during the three months ended March 31, 2020 and 2019 totaled 0.5 million and 0.9 million, respectively. A summary of the status of the Company's non-vested RSU grants issued, and the changes during the three months ended March 31, 2020 is presented below: Shares Weighted Average Fair Value per Share Non-vested RSUs at December 31, 2019 1,849,676 $ 4.04 Granted — — Vested (692,050 ) 0.69 Forfeited (24,200 ) — Non-vested RSUs at March 31, 2020 1,133,426 $ 3.62 Stock Appreciation Rights In the past, Lonestar has granted awards of stock appreciation rights (“SARs”) to employees and directors as part of its long-term compensation program. For the three months ended March 31, 2020 and 2019 , the Company recognized $ (0.5) million and $ 0.2 million, respectively, of stock-based compensation (benefit) expense for SARs. The liability for SARs on the accompanying unaudited consolidated balance sheet as of March 31, 2020 was not material. As of March 31, 2020 , the total compensation cost to be recognized in future periods related to non-vested SAR grants was not material. The cost is expected to be recognized over a weighted-average period of 1.0 year. The following is a summary of the Company's SAR activity: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Outstanding at December 31, 2019 1,010,000 $ 6.30 2.5 SARs vested and exercisable at December 31, 2019 606,250 6.65 2.4 Granted — — — Exercised — — — Expired/forfeited — — — Outstanding at March 31, 2020 1,010,000 $ 6.30 2.3 SARs vested and exercisable at March 31, 2020 805,000 $ 6.79 2.1 |
Related Party Activities
Related Party Activities | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Activities | Related Party Activities New Tech Global Ventures, LLC, and New Tech Global Environmental, LLC, companies in which a director of the Company owns a limited partnership interest, have provided field engineering staff and consultancy services for the Company since 2013. The total cost for such services was approximately $ 0.5 million and $ 0.3 million for the three months ended March 31, 2020 and 2019 , respectively. In February 2019, the Company purchased a property adjacent to its corporate office for future expansion for approximately $2.0 million. The transaction was funded with cash from operations. The seller of the property is indebted to certain trusts established in favor of the children of one of the Company's directors. The Company understands that the seller may use some of the proceeds of the sale to satisfy such outstanding indebtedness, though the Company has no interest or influence over any particular outcome. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lonestar has one drilling rig under contract that is currently operating, which provides for a drilling rate of $19.0 thousand per day and expires on September 7, 2020. Should the Company terminate the contract early, the early termination fee totals $15.0 thousand per day times the remaining number of days left on the contract after the termination date. From time to time, Lonestar is subject to legal proceedings and claims that arise in the ordinary course of business. Like other crude oil and gas producers and marketers, the Company's operations are subject to extensive and rapidly changing federal and state environmental, health and safety, and other laws and regulations governing air emissions, wastewater discharges and solid and hazardous waste management activities. The Company is not aware of any pending or overtly threatened legal action against it that could have a material impact on its business. Gonzales County AMI In February 2020, the Company announced that it had entered into a Joint Development Agreement (the "JDA") in Gonzales County with one of the largest producers in the Eagle Ford which encompass an Area of Mutual Interest (the "AMI") totaling approximately 15,000 acres. The agreement calls for Lonestar to operate a minimum of three to four Eagle Ford Shale wells annually on behalf of the two companies through 2022 that are intended to hold-by-production approximately 6,000 gross acres within the AMI. The agreement gives Lonestar's partner the option to participate in each well with a 50% working interest or to participate via a carried working interest that ranges from approximately 9 to 17% , depending on location. In June, the Company began flowback operations on the Hawkeye #14H, Hawkeye #15H, and Hawkeye #16H, which were the first wells completed in the AMI. The Company's JDA partner did not participate in these wells, and on June 29, 2020 the Company completed a sale of 40% of the working interest in these wells to a third party for $9.1 million . After the sale, Lonestar has a 50% WI / 37.5% NRI in these wells. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Preferred Stock PIK Dividend On June 25, 2020, the Company approved a dividend with respect to the Company’s Series A-1 Preferred Stock. Chambers, as the holder of A-1 Preferred Stock as of June 25, 2020, received an aggregate of 2,308 additional shares of A-1 Preferred Stock as a dividend for its A-1 Preferred Stock on June 30, 2020. CIC Plan On June 29, 2020, the Company entered into Eligibility Notification Letters (the “Eligibility Notification Letters”) with each of our named executive officers, including Frank D. Bracken III, our chief executive officer and Barry D. Schneider, our chief operating officer, in connection with the Lonestar Resources US Inc. Change in Control Severance Plan (the “CIC Plan”) that was adopted by our board of directors. Under the Plan and the Eligibility Notification Letters, eligible participants will be entitled to severance payments and benefits in the event their employment is terminated by us without cause or they resign for good reason, in either case within two years following or two and one-half months prior to a change in control of the Company, subject to the participant’s execution and non-revocation of a release of claims in favor of the Company. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Statements | Interim Financial Statements The accompanying unaudited condensed consolidated financial statements of Lonestar Resources US Inc., and its subsidiaries have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These financial statements and the notes thereto should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2019 filed on April 13, 2020 (the “Form 10-K”). Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “Company” or “Lonestar,” refer to Lonestar Resources US Inc. and its subsidiaries. The results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for the year. In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of our consolidated financial position as of March 31, 2020 and our consolidated results of operations for the three months ended March 31, 2020 and 2019 . |
Net Income (Loss) per Common Share | Net Loss per Common Share The two-class method is utilized to compute earnings per common share as our Class A Participating Preferred Stock (the "Preferred Stock") is considered a participating security. Under the two-class method, losses are allocated only to those securities that have a contractual obligation to share in the losses of the Company. The Preferred Stock is not obligated to absorb Company losses and accordingly is not allocated losses. Net income attributable to common stockholders is allocated between common stock and participating securities based on the weighted average number of common shares and participating securities outstanding for the period. Basic earnings per share is computed by dividing the allocated net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share is computed similarly except that the denominator is increased to include dilutive potential common shares. Potential common shares consist of warrants, equity compensation awards and Preferred Stock. In certain circumstances adjustment to the numerator is also required for changes in income or loss resulting from the potential common shares. Basic weighted average common shares exclude shares of non-vested restricted stock. As these restricted shares vest, they will be included in the shares outstanding used to calculate basic earnings per share. For the periods presented, there were no differences between the basic and diluted weighted average common shares. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions to ease financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) or another reference rate to alternative reference rates. The amendments in this ASU are effective beginning on March 12, 2020, and an entity may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related footnote disclosures. Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The objective of ASU 2019-12 is to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and to provide more consistent application to improve the comparability of financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and early adoption is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related footnote disclosures. |
Fair Value Measurements | Fair Value Measurements Fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. ASC 820 prioritizes the inputs used in measuring fair value into the following fair value hierarchy: • 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Potentially Dilute Earnings Per Share in Future Were Excluded in the Computation of Diluted Net (Loss) Income Per Share as They Were Anti-dilutive | The following securities could potentially dilute earnings per share in the future, but were excluded from the computation of diluted net loss per share, as their effect would have been antidilutive: Three Months Ended March 31, 2020 2019 Preferred stock 16,725,467 15,301,157 Warrants 760,000 760,000 Stock appreciation rights 1,010,000 1,010,000 Restricted stock units 1,925,366 834,397 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Commodity Derivative Contracts | The following table summarizes Lonestar's commodity derivative contracts as of March 31, 2020 : Contract Volumes Weighted Commodity Type Period Range (1) (Bbls/Mcf per day) Average Price Oil - WTI Swaps Apr - June 2020 $48.90 - $65.56 7,498 $ 56.50 Oil - WTI Swaps July - Dec 2020 51.60 - 65.56 7,565 57.38 Oil - WTI Swaps Jan - Dec 2021 40.95 - 56.50 7,000 50.40 Natural Gas - Henry Hub Swaps Apr - Dec 2020 2.38 - 2.80 20,000 2.55 Natural Gas - Henry Hub Swaps Jan - Dec 2021 2.32 - 2.39 27,500 2.36 (1) Ranges presented for fixed-price swaps and basis swaps represent the lowest and highest fixed prices of all open contracts for the period presented. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table summarizes our revenues by product type for the three months ended March 31, 2020 and 2019: In thousands Three Months Ended March 31, 2020 2019 Oil $ 29,990 $ 33,584 NGLs 2,599 3,393 Natural gas 4,420 3,764 Total revenues $ 37,009 $ 40,741 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 , for each fair value hierarchy level: Fair Value Measurements Using In thousands Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total March 31, 2020 Assets Derivative financial instruments $ — $ 99,859 $ — $ 99,859 Liabilities: Derivative financial instruments — (3,397 ) — (3,397 ) Warrant — — (1 ) (1 ) Stock-based compensation (77 ) — (27 ) (104 ) Total $ (77 ) $ 96,462 $ (28 ) $ 96,357 December 31, 2019 Assets: Derivative financial instruments $ — $ 6,849 $ — $ 6,849 Liabilities: Derivative financial instruments — (10,462 ) — (10,462 ) Warrant — — (364 ) (364 ) Stock-based compensation (1,792 ) — (573 ) (2,365 ) Total $ (1,792 ) $ (3,613 ) $ (937 ) $ (6,342 ) |
Summary of Changes in Fair Value for the Level 3 Liabilities | The table below sets forth a summary of changes in the fair value of the Company’s Level 3 liabilities for the three months ended March 31, 2020 : In thousands Warrant Stock-Based Compensation Total Balance as of December 31, 2019 $ (364 ) $ (573 ) $ (937 ) Unrealized gains 363 546 909 Balance as of March 31, 2020 $ (1 ) $ (27 ) $ (28 ) |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of the dates indicated: In thousands March 31, December 31, Accrued interest – 11.25% Senior Notes $ 7,031 $ 14,063 Accrued well costs 12,387 8,932 Bonus payable 609 2,353 Other 3,022 1,557 Total accrued liabilities $ 23,049 $ 26,905 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Outstanding | The following long-term debt obligations were outstanding as of the dates indicated: In thousands March 31, December 31, Senior Secured Credit Facility $ 267,000 $ 247,000 11.25% Senior Notes due 2023 250,000 250,000 Mortgage debt 8,877 8,931 Other 271 271 Total long-term debt 526,148 506,202 Unamortized discount (3,094 ) (3,375 ) Unamortized debt issuance costs (647 ) (759 ) Total net of debt issuance costs 522,407 502,068 Less current obligations (513,259 ) (247,000 ) Long-term debt $ 9,148 $ 255,068 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Outstanding Restricted Stock Units | A summary of the status of the Company's non-vested RSU grants issued, and the changes during the three months ended March 31, 2020 is presented below: Shares Weighted Average Fair Value per Share Non-vested RSUs at December 31, 2019 1,849,676 $ 4.04 Granted — — Vested (692,050 ) 0.69 Forfeited (24,200 ) — Non-vested RSUs at March 31, 2020 1,133,426 $ 3.62 |
Schedule of Outstanding Stock Appreciation Rights | The following is a summary of the Company's SAR activity: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Outstanding at December 31, 2019 1,010,000 $ 6.30 2.5 SARs vested and exercisable at December 31, 2019 606,250 6.65 2.4 Granted — — — Exercised — — — Expired/forfeited — — — Outstanding at March 31, 2020 1,010,000 $ 6.30 2.3 SARs vested and exercisable at March 31, 2020 805,000 $ 6.79 2.1 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Potentially Dilute Earnings Per Share in Future Were Excluded in the Computation of Diluted Net (Loss) Income Per Share as They Were Anti-dilutive (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 16,725,467 | 15,301,157 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 760,000 | 760,000 |
Stock appreciation rights | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,010,000 | 1,010,000 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,925,366 | 834,397 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation - Additional Information (Details) | May 08, 2020USD ($) | Mar. 01, 2020 | Feb. 29, 2020 | Mar. 31, 2020USD ($)$ / bblbbl | Jun. 30, 2020bbl | Mar. 31, 2020USD ($)$ / bbl | Mar. 31, 2019USD ($) | Dec. 31, 2020$ / bblbbl | Dec. 31, 2020$ / bblMcf | Dec. 31, 2021bbl | Dec. 31, 2021Mcf | Jul. 02, 2020USD ($) | Jun. 11, 2020USD ($) | May 31, 2020Boe | Dec. 31, 2019USD ($) | Jan. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Budget reduction capital spending midpoint | 0.27 | |||||||||||||||
Total volume | bbl | 2,000 | |||||||||||||||
Total net of debt issuance costs | $ 522,407,000 | $ 522,407,000 | $ 502,068,000 | |||||||||||||
Weighted average price - swap | $ / bbl | 41 | 41 | ||||||||||||||
Long-term debt | $ 526,148,000 | $ 526,148,000 | 506,202,000 | |||||||||||||
Impairment of oil and gas properties | $ 199,908,000 | $ 0 | ||||||||||||||
Debt instrument interest rate (as a percent) | 11.25% | 11.25% | ||||||||||||||
Accrued interest – 11.25% Senior Notes | $ 7,031,000 | $ 7,031,000 | 14,063,000 | |||||||||||||
Senior Secured Credit Facility | $ 267,000,000 | $ 267,000,000 | 247,000,000 | |||||||||||||
11.25% Senior Notes | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Debt instrument interest rate (as a percent) | 11.25% | 11.25% | 11.25% | |||||||||||||
11.25% Senior Notes due 2023 | $ 250,000,000 | $ 250,000,000 | 250,000,000 | |||||||||||||
11.15% Senior Notes | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Accrued interest – 11.25% Senior Notes | 14,000,000 | |||||||||||||||
Senior Secured Credit Facility | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Debt instrument expanded borrowing base | 290,000,000 | 290,000,000 | ||||||||||||||
Proved oil And gas properties | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Impairment of oil and gas properties | 199,000,000 | |||||||||||||||
Unproved oil and gas properties | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Impairment of oil and gas properties | 900,000 | |||||||||||||||
Mortgages Debt | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Mortgage debt | $ 8,877,000 | $ 8,877,000 | $ 8,931,000 | |||||||||||||
Subsequent Event | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Shut in or stored (in BOE per day) | Boe | 4,700 | |||||||||||||||
Total volume | 7,498 | 7,565 | 20,000 | 7,000 | 27,500 | |||||||||||
Weighted average price - swap | $ / bbl | 2.36 | 2.36 | ||||||||||||||
Senior Secured Credit Facility | $ 285,000,000 | |||||||||||||||
Subsequent Event | 11.20% Senior Notes | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Debt instrument interest rate (as a percent) | 11.25% | |||||||||||||||
Subsequent Event | Senior Secured Credit Facility | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Senior Secured Credit Facility | $ 285,000,000 | |||||||||||||||
Line of Credit Facility, Increase (Decrease), Net | 60,400,000 | |||||||||||||||
Debt instrument expanded borrowing base | $ 225,000,000 | $ 286,000,000 | ||||||||||||||
Subsequent Event | Unsecured Debt | Coronavirus Aid, Relief and Economic Security Act | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Proceeds from sssuance of unsecured debt | $ 2,200,000 | |||||||||||||||
Minimum | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Reduction in capital spending program | 85,000,000 | 80,000,000 | ||||||||||||||
Maximum | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Reduction in capital spending program | 65,000,000 | 55,000,000 |
Acquisitions and Divestitures A
Acquisitions and Divestitures Acquisitions and Divestitures - Divestiture (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 30, 2019USD ($)Boe | Mar. 31, 2020USD ($)awelllocation | Mar. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (loss) on divestiture | $ 0 | $ (32,894) | |
Pirate Divestiture | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from divestiture | $ 11,500 | ||
Net undeveloped acres (in acres) | a | 3,400 | ||
Producing wells | well | 6 | ||
Proved undeveloped locations | location | 7 | ||
Production per day (in barrels of oil equivalent) | Boe | 200 | ||
Gain (loss) on divestiture | $ (33,500) |
Commodity Price Risk Activities
Commodity Price Risk Activities - Additional Information (Details) | Mar. 31, 2020deliveryobligation |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Number of open physical obligations | 0 |
Commodity Price Risk Activiti_2
Commodity Price Risk Activities - Schedule of Commodity Derivative Contracts (Details) | 1 Months Ended | 3 Months Ended |
Mar. 31, 2020$ / MMBTU$ / bblbbl | Mar. 31, 2020$ / MMBTU$ / bblbblMcf | |
Derivative [Line Items] | ||
Total volume | bbl | 2,000 | |
Weighted average price - swap | 41 | 41 |
Oil - WTI Swaps April - June 2020 | ||
Derivative [Line Items] | ||
Total volume | bbl | 7,498 | |
Weighted average price - swap | 56.50 | 56.50 |
Weighted average price - floor | 48.90 | 48.90 |
Weighted average price - ceiling | 65.56 | 65.56 |
Oil WTI Swaps July - December 2020 | ||
Derivative [Line Items] | ||
Total volume | bbl | 7,565 | |
Weighted average price - swap | 57.38 | 57.38 |
Weighted average price - floor | 51.60 | 51.60 |
Weighted average price - ceiling | 65.56 | 65.56 |
Oil - WTI Swaps January - December 2021 | ||
Derivative [Line Items] | ||
Total volume | bbl | 7,000 | |
Weighted average price - swap | 50.40 | 50.40 |
Weighted average price - floor | 40.95 | 40.95 |
Weighted average price - ceiling | 56.50 | 56.50 |
Natural Gas - Henry Hub Swaps April - December 2020 | ||
Derivative [Line Items] | ||
Total volume | bbl | 20,000 | |
Weighted average price - swap | 2.55 | 2.55 |
Weighted average price - floor | 2.38 | 2.38 |
Weighted average price - ceiling | 2.80 | 2.80 |
Natural Gas - Henry Hub Swaps January- December 2021 | ||
Derivative [Line Items] | ||
Total volume | Mcf | 27,500 | |
Weighted average price - swap | 2.36 | 2.36 |
Weighted average price - floor | $ / MMBTU | 2.32 | 2.32 |
Weighted average price - ceiling | $ / MMBTU | 2.39 | 2.39 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Disaggregation of Revenue [Abstract] | ||
Oil, natural gas liquid and natural gas sales | $ 10,229 | $ 15,991 |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by product type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from External Customer [Line Items] | ||
Revenues | $ 37,009 | $ 40,741 |
Oil sales | ||
Revenue from External Customer [Line Items] | ||
Revenues | 29,990 | 33,584 |
Natural gas liquid sales | ||
Revenue from External Customer [Line Items] | ||
Revenues | 2,599 | 3,393 |
Natural gas sales | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 4,420 | $ 3,764 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant | $ (1) | $ (364) |
Stock-based compensation | (104) | (2,365) |
Total | 96,357 | (6,342) |
Derivative financial instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 99,859 | 6,849 |
Derivative financial instruments | (3,397) | (10,462) |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant | 0 | 0 |
Stock-based compensation | (77) | (1,792) |
Total | (77) | (1,792) |
Quoted Prices in Active Markets (Level 1) | Derivative financial instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant | 0 | 0 |
Stock-based compensation | 0 | 0 |
Total | 96,462 | (3,613) |
Significant Other Observable Inputs (Level 2) | Derivative financial instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 99,859 | 6,849 |
Derivative financial instruments | (3,397) | (10,462) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant | (1) | (364) |
Stock-based compensation | (27) | (573) |
Total | (28) | (937) |
Significant Unobservable Inputs (Level 3) | Derivative financial instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Derivative financial instruments | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value for the Level 3 Liability (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ (937) |
Unrealized gains | 909 |
Ending balance | (28) |
Warrants | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | (364) |
Unrealized gains | 363 |
Ending balance | (1) |
Stock-Based Compensation | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | (573) |
Unrealized gains | 546 |
Ending balance | $ (27) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 11.25% | |
11.25% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 11.25% | 11.25% |
Fair value of senior notes | $ 64.1 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued interest – 11.25% Senior Notes | $ 7,031 | $ 14,063 |
Accrued well costs | 12,387 | 8,932 |
Bonus payable | 609 | 2,353 |
Other | 3,022 | 1,557 |
Total accrued liabilities | $ 23,049 | $ 26,905 |
Debt instrument interest rate (as a percent) | 11.25% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Senior Secured Credit Facility | $ 267,000 | $ 247,000 |
Other | 271 | 271 |
Total long-term debt | 526,148 | 506,202 |
Unamortized discount | (3,094) | (3,375) |
Unamortized debt issuance costs | (647) | (759) |
Total net of debt issuance costs | 522,407 | 502,068 |
Less current obligations | (513,259) | (247,000) |
Long-term debt | 9,148 | 255,068 |
Mortgages Debt | ||
Debt Instrument [Line Items] | ||
Mortgage debt | 8,877 | 8,931 |
11.25% Senior Notes | ||
Debt Instrument [Line Items] | ||
11.25% Senior Notes due 2023 | $ 250,000 | $ 250,000 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility - Additional Information (Details) | Jun. 29, 2020 | Jun. 11, 2020USD ($) | Jul. 28, 2015 | Jul. 31, 2015USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2018 | Jul. 02, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||
Senior Secured Credit Facility | $ 267,000,000 | $ 247,000,000 | |||||||
Maximum debt EBITDAX ratio | 4 | ||||||||
Current ratio | 100.00% | ||||||||
Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate on borrowings | 5.30% | ||||||||
Debt instrument borrowing base | $ 22,600,000 | ||||||||
Senior secured credit facility sub limit | $ 2,500,000 | ||||||||
Debt instrument expanded borrowing base | $ 290,000,000 | ||||||||
Senior Secured Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage | 0.375% | ||||||||
Senior Secured Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage | 0.50% | ||||||||
Letter of Credit | Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument borrowing base | $ 400,000 | ||||||||
LRAI | Senior Secured Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of assets secured under credit facility | 80.00% | ||||||||
LRAI | Citibank N A | Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 500 | ||||||||
Federal Funds Effective Rate | LRAI | Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 0.50% | ||||||||
LIBOR | Senior Secured Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 2.00% | ||||||||
LIBOR | Senior Secured Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 3.00% | ||||||||
LIBOR | LRAI | Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 1.00% | ||||||||
Alternate Base Rate | Senior Secured Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 1.00% | ||||||||
Alternate Base Rate | Senior Secured Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 2.00% | ||||||||
Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Secured Credit Facility | $ 285,000,000 | ||||||||
Incremental default interest | 0.02 | ||||||||
Subsequent Event | Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Secured Credit Facility | 285,000,000 | ||||||||
Borrowing deficiency | 60,400,000 | ||||||||
Debt instrument expanded borrowing base | $ 286,000,000 | 225,000,000 | |||||||
Line of credit facility, covenant, payment requirement | $ 60,000,000 | ||||||||
Subsequent Event | Senior Secured Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage | 0.50% | ||||||||
Subsequent Event | LRAI | Senior Secured Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of assets secured under credit facility | 100.00% | ||||||||
Subsequent Event | LIBOR | Senior Secured Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 3.00% | ||||||||
Subsequent Event | LIBOR | Senior Secured Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 4.50% | ||||||||
Subsequent Event | Alternate Base Rate | Senior Secured Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 2.00% | ||||||||
Subsequent Event | Alternate Base Rate | Senior Secured Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 3.50% |
Long-Term Debt - Twelfth Amendm
Long-Term Debt - Twelfth Amendment (Details) $ in Millions | May 08, 2020USD ($) |
Coronavirus Aid, Relief and Economic Security Act | Subsequent Event | Unsecured Debt | |
Debt Instrument [Line Items] | |
Proceeds from sssuance of unsecured debt | $ 2.2 |
Long-Term Debt - Waiver and Thi
Long-Term Debt - Waiver and Thirteenth Amendement (Details) $ in Millions | Mar. 31, 2020USD ($) |
Senior Secured Credit Facility | |
Debt Instrument [Line Items] | |
Debt instrument expanded borrowing base | $ 290 |
Long-Term Debt - Issuance of 11
Long-Term Debt - Issuance of 11.25% Senior Notes - Additional Information (Details) - USD ($) | Jan. 04, 2018 | Jan. 31, 2018 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Debt instrument interest rate (as a percent) | 11.25% | |||
Accrued interest – 11.25% Senior Notes | $ 7,031,000 | $ 14,063,000 | ||
11.25% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 250,000,000 | |||
Debt instrument interest rate (as a percent) | 11.25% | 11.25% | ||
Debt instrument proceeds net | $ 244,400,000 | |||
Redemption price, percentage | 65.00% | |||
Redemption price, percentage | 111.25% | |||
11.25% Senior Notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage | 35.00% | |||
Redemption period | 180 days | |||
11.15% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Accrued interest – 11.25% Senior Notes | $ 14,000,000 | |||
8.750% Senior Notes Due April 15, 2019 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate (as a percent) | 8.75% | |||
Payment of principal, interest and prepayment premium | $ 162,000,000 | |||
January 1, 2021 | 11.25% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage | 100.00% | |||
108.438% January 1, 2021 | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage | 108.438% | |||
105.625% January 1, 2022 | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage | 105.625% | |||
100% July 1, 2022 | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage | 100.00% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - $ / shares | 3 Months Ended | 18 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | |
Series A-1 Convertible Participating Preferred Stock | |||
Class of Stock [Line Items] | |||
Payment-in-kind dividends (in shares) | 2,257 | 2,065 | 20,328 |
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate, percentage | 9.00% | ||
Shares issued, price per share (in dollars per share) | $ 975 | ||
Preferred stock, increase in dividend rate for next succeeding dividend period | 5.00% | ||
Preferred stock, additional increase in dividend rate for each successive dividend period | 1.00% | ||
Series A Preferred Stock | Maximum | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate, percentage | 20.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses | $ (1.3) | $ 0.7 |
Stock-based compensation liability | 0.1 | |
Unrecognized compensation expense | $ 0.4 | |
Unrecognized stock-based compensation cost, recognition period | 1 year 8 months 20 days | |
Vested in period, fair value | $ 0.5 | 0.9 |
Stock Appreciation Rights (SARs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses | $ (0.5) | $ 0.2 |
Unrecognized stock-based compensation cost, recognition period | 1 year 1 day |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Outstanding Restricted Stock Units (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Non-vested Shares [Roll Forward] | |
Non-vested RSUs at beginning of period (in shares) | shares | 1,849,676 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (692,050) |
Forfeited (in shares) | shares | (24,200) |
Non-vested RSUs at end of period (in shares) | shares | 1,133,426 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Non-vested RSUs, beginning of period (in dollars per share) | $ / shares | $ 4.04 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0.69 |
Forfeited (in dollars per share) | $ / shares | 0 |
Non-vested RSUs, end of period (in dollars per share) | $ / shares | $ 3.62 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Outstanding Stock Appreciation Rights (Details) - Stock Appreciation Rights (SARs) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Outstanding Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 1,010,000 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Expired/forfeited (in shares) | 0 | |
Outstanding at end of period (in shares) | 1,010,000 | 1,010,000 |
Options vested and exercisable (in shares) | 805,000 | 606,250 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Outstanding at beginning of period, Weighted Average Exercise Price Per Share (in dollars per share) | $ 6.30 | |
Granted, Weighted Average Exercise Price Per Share (in dollars per share) | 0 | |
Exercised, Weighted Average Exercise Price Per Share (in dollars per share) | 0 | |
Expired/forfeited , Weighted Average Exercise Price Per Share (in dollars per share) | 0 | |
Outstanding at end of period, Weighted Average Exercise Price Per Share (in dollars per share) | 6.30 | $ 6.30 |
Options vested and exercisable, Weighted Average Exercise Price Per Share (in dollars per share) | $ 6.79 | $ 6.65 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Non-vested RSUs, Weighted Average Remaining Contractual Term (in years) | 2 years 3 months 8 days | 2 years 5 months 18 days |
Options vested and exercisable, Weighted Average Remaining Contractual Term (in years) | 2 years 1 month 5 days | 2 years 4 months 15 days |
Related Party Activities - Addi
Related Party Activities - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
New Tech Global Ventures LLC | |||
Related Party Transaction [Line Items] | |||
Cost of consultancy services | $ 0.5 | $ 0.3 | |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payments to acquire land | $ 2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) a in Thousands | Jun. 29, 2020USD ($) | Feb. 29, 2020awell | Jul. 31, 2019USD ($) | Mar. 31, 2020USD ($) |
Other Commitments [Line Items] | ||||
Aggregate drilling rate | $ 19,000 | |||
Early termination fee amount | $ 15,000 | |||
One Of Largest Producers In The Eagle Ford | ||||
Other Commitments [Line Items] | ||||
Oil and gas agreement, area of mutual interest | a | 15 | |||
Oil and gas agreement, hold-by-production area | a | 6 | |||
Oil and gas agreement, working interest | 50.00% | |||
Minimum | One Of Largest Producers In The Eagle Ford | ||||
Other Commitments [Line Items] | ||||
Number of wells to be operated | well | 3 | |||
Oil and gas agreement, carried working interest | 9.00% | |||
Maximum | One Of Largest Producers In The Eagle Ford | ||||
Other Commitments [Line Items] | ||||
Number of wells to be operated | well | 4 | |||
Oil and gas agreement, carried working interest | 17.00% | |||
Subsequent Event | One Of Largest Producers In The Eagle Ford | ||||
Other Commitments [Line Items] | ||||
Oil and gas agreement, working interest | 50.00% | |||
Oil and gas agreement, working interest sold | 40.00% | |||
Oil and gas agreement, working interest amount | $ 9,100,000 | |||
Oil and gas agreement, net revenue interest | 37.50% |
Subsequent Events Additional In
Subsequent Events Additional Information (Details) | Jun. 25, 2020shares |
Series A-1 Convertible Participating Preferred Stock | Subsequent Event | |
Subsequent Event [Line Items] | |
Stock dividend | 2,308 |