Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38606 | |
Entity Registrant Name | Berry Corporation (bry) | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-5410470 | |
Entity Address, Address Line One | 16000 Dallas Parkway | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75248 | |
City Area Code | 661 | |
Local Phone Number | 616-3900 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | BRY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 80,471,022 | |
Entity Central Index Key | 0001705873 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 74,918 | $ 80,557 |
Accounts receivable, net of allowance for doubtful accounts of $1,715 at June 30, 2021 and $2,215 at December 31, 2020 | 63,740 | 52,027 |
Derivative instruments | 11,515 | 2,507 |
Other current assets | 26,890 | 19,400 |
Total current assets | 177,063 | 154,491 |
Noncurrent assets: | ||
Oil and natural gas properties | 1,478,622 | 1,412,566 |
Accumulated depletion and amortization | (294,576) | (235,259) |
Total oil and natural gas properties, net | 1,184,046 | 1,177,307 |
Other property and equipment | 114,558 | 112,145 |
Accumulated depreciation | (36,187) | (31,368) |
Total other property and equipment, net | 78,371 | 80,777 |
Other noncurrent assets | 5,035 | 7,235 |
Total assets | 1,444,515 | 1,419,810 |
Current liabilities: | ||
Accounts payable and accrued expenses | 160,586 | 151,985 |
Derivative instruments | 61,476 | 23,321 |
Total current liabilities | 222,062 | 175,306 |
Noncurrent liabilities: | ||
Long-term debt | 394,009 | 393,480 |
Derivative instruments | 4,058 | 0 |
Deferred income taxes | 538 | 1,011 |
Asset retirement obligations | 139,181 | 135,192 |
Other noncurrent liabilities | 6,009 | 785 |
Commitments and Contingencies - Note 4 | ||
Stockholders' Equity: | ||
Common stock ($0.001 par value; 750,000,000 shares authorized; 85,583,268 and 85,041,581 shares issued; and 80,471,022 and 79,929,335 shares outstanding, at June 30, 2021 and December 31, 2020, respectively) | 86 | 85 |
Additional paid-in-capital | 914,701 | 915,877 |
Treasury stock, at cost (5,112,246 shares at June 30, 2021 and December 31, 2020) | (49,995) | (49,995) |
Retained deficit | (186,134) | (151,931) |
Total stockholders' equity | 678,658 | 714,036 |
Total liabilities and stockholders' equity | $ 1,444,515 | $ 1,419,810 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,715 | $ 2,215 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 85,583,268 | 85,041,581 |
Common stock, shares outstanding (in shares) | 80,471,022 | 79,929,335 |
Treasury stock, at cost (in shares) | 5,112,246 | 5,112,246 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues and other: | ||||
Revenues and other | $ 154,902 | $ 75,720 | $ 302,607 | $ 203,756 |
(Losses) gains on derivatives | (69,788) | 156,002 | ||
Total revenues and other | 99,249 | 33,453 | 193,450 | 372,718 |
Expenses and other: | ||||
Transportation expenses | 1,757 | 1,789 | 3,333 | 3,611 |
Marketing expenses | 44 | 280 | 2,271 | 710 |
General and administrative expenses | 16,065 | 18,777 | 33,135 | 38,114 |
Depreciation, depletion, and amortization | 35,850 | 37,512 | 69,690 | 72,841 |
Impairment of oil and gas properties | 0 | 0 | 0 | 289,085 |
Taxes, other than income taxes | 11,603 | 10,449 | 21,160 | 14,801 |
Losses (gains) on derivatives | 69,788 | (156,002) | ||
Other operating expenses (income) | 42 | (1,192) | 841 | 1,010 |
Total expenses and other | 103,977 | 112,295 | 211,248 | 531,585 |
Other (expenses) income: | ||||
Interest expense | (8,217) | (8,676) | (16,702) | (17,596) |
Other, net | (8) | (6) | (151) | (12) |
Total other (expenses) income | (8,225) | (8,682) | (16,853) | (17,608) |
Loss before income taxes | (12,953) | (87,524) | (34,651) | (176,475) |
Income tax (benefit) expense | (72) | (22,623) | (448) | 3,726 |
Net loss | $ (12,881) | $ (64,901) | $ (34,203) | $ (180,201) |
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.16) | $ (0.81) | $ (0.43) | $ (2.26) |
Diluted (in dollars per share) | $ (0.16) | $ (0.81) | $ (0.43) | $ (2.26) |
Oil, natural gas and natural gas liquids sales | ||||
Revenues and other: | ||||
Revenues and other | $ 147,775 | $ 70,515 | $ 283,040 | $ 192,613 |
Expenses and other: | ||||
Cost of goods sold | 45,543 | 40,733 | 107,827 | 91,485 |
Electricity sales | ||||
Revenues and other: | ||||
Revenues and other | 6,888 | 4,884 | 16,957 | 10,345 |
Expenses and other: | ||||
Cost of goods sold | 4,712 | 3,022 | 12,360 | 6,968 |
(Losses) gains on oil and gas sales derivatives | ||||
Revenues and other: | ||||
(Losses) gains on derivatives | (55,653) | (42,267) | (109,157) | 168,962 |
Expenses and other: | ||||
Losses (gains) on derivatives | 55,653 | 42,267 | 109,157 | (168,962) |
Marketing revenues | ||||
Revenues and other: | ||||
Revenues and other | 121 | 292 | 2,355 | 745 |
Other revenues | ||||
Revenues and other: | ||||
Revenues and other | 118 | 29 | 255 | 53 |
(Gains) losses on natural gas purchase derivatives | ||||
Revenues and other: | ||||
Revenues and other | 5,415 | 2,834 | 17,492 | 6,202 |
(Losses) gains on derivatives | 11,639 | (925) | 39,369 | (12,960) |
Expenses and other: | ||||
Losses (gains) on derivatives | $ (11,639) | $ 925 | $ (39,369) | $ 12,960 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Deficit |
Beginning balance at Dec. 31, 2019 | $ 972,448 | $ 85 | $ 901,830 | $ (49,995) | $ 120,528 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares withheld for payment of taxes on equity awards and other | (794) | (794) | |||
Stock based compensation | 3,036 | 3,036 | |||
Dividends declared on common stock | (9,564) | (9,564) | |||
Net loss | (115,300) | (115,300) | |||
Ending balance at Mar. 31, 2020 | 849,826 | 85 | 904,072 | (49,995) | (4,336) |
Beginning balance at Dec. 31, 2019 | 972,448 | 85 | 901,830 | (49,995) | 120,528 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (180,201) | ||||
Ending balance at Jun. 30, 2020 | 789,515 | 85 | 908,662 | (49,995) | (69,237) |
Beginning balance at Mar. 31, 2020 | 849,826 | 85 | 904,072 | (49,995) | (4,336) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares withheld for payment of taxes on equity awards and other | (140) | (140) | |||
Stock based compensation | 4,730 | 4,730 | |||
Net loss | (64,901) | (64,901) | |||
Ending balance at Jun. 30, 2020 | 789,515 | 85 | 908,662 | (49,995) | (69,237) |
Beginning balance at Dec. 31, 2020 | 714,036 | 85 | 915,877 | (49,995) | (151,931) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares withheld for payment of taxes on equity awards and other | (1,442) | (1,442) | |||
Stock based compensation | 3,995 | 3,995 | |||
Issuance of common stock | 1 | 1 | |||
Dividends declared on common stock | (3,474) | (3,474) | |||
Net loss | (21,322) | (21,322) | |||
Ending balance at Mar. 31, 2021 | 691,794 | 86 | 914,956 | (49,995) | (173,253) |
Beginning balance at Dec. 31, 2020 | 714,036 | 85 | 915,877 | (49,995) | (151,931) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (34,203) | ||||
Ending balance at Jun. 30, 2021 | 678,658 | 86 | 914,701 | (49,995) | (186,134) |
Beginning balance at Mar. 31, 2021 | 691,794 | 86 | 914,956 | (49,995) | (173,253) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares withheld for payment of taxes on equity awards and other | (78) | (78) | |||
Stock based compensation | 3,042 | 3,042 | |||
Dividends declared on common stock | (3,219) | (3,219) | |||
Net loss | (12,881) | (12,881) | |||
Ending balance at Jun. 30, 2021 | $ 678,658 | $ 86 | $ 914,701 | $ (49,995) | $ (186,134) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared on common stock (in dollars per share) | $ 0.04 | $ 0.04 | $ 0.12 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (34,203) | $ (180,201) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 69,690 | 72,841 |
Amortization of debt issuance costs | 2,728 | 2,681 |
Impairment of oil and gas properties | 0 | 289,085 |
Stock-based compensation expense | 6,639 | 7,501 |
Deferred income taxes | (473) | 2,750 |
(Decrease) increase in allowance for doubtful accounts | (500) | 1,200 |
Other operating expenses | 142 | 317 |
Derivative activities: | ||
Total losses (gains) | 69,788 | (156,002) |
Cash settlements on derivatives | (36,581) | 71,499 |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable | (11,189) | 21,802 |
(Increase) in other assets | (7,490) | (3,642) |
Increase (decrease) in accounts payable and accrued expenses | 3,406 | (32,102) |
(Decrease) in other liabilities | (2,098) | (11,307) |
Net cash provided by operating activities | 59,859 | 86,422 |
Capital expenditures: | ||
Capital expenditures | (67,030) | (56,403) |
Changes in capital expenditures accruals | 6,934 | (7,256) |
Acquisition of properties and equipment and other | (825) | (2,076) |
Proceeds from sale of property and equipment and other | 409 | 217 |
Net cash used in investing activities | (60,512) | (65,518) |
Cash flows from financing activities: | ||
Borrowings under RBL credit facility | 0 | 222,550 |
Repayments on RBL credit facility | 0 | (223,100) |
Dividends paid on common stock | (3,466) | (19,420) |
Shares withheld for payment of taxes on equity awards and other | (1,520) | (934) |
Net cash used in financing activities | (4,986) | (20,904) |
Net increase in cash and cash equivalents | (5,639) | 0 |
Cash and cash equivalents: | ||
Beginning | 80,557 | 0 |
Ending | $ 74,918 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation “Berry Corp.” refers to Berry Corporation (bry), a Delaware corporation, which is the sole member of Berry Petroleum Company, LLC (“Berry LLC”). As the context may require, the “Company”, “we”, “our” or similar words refer to (i) Berry Corp. and Berry LLC, its consolidated subsidiary, as a whole or (ii) either Berry Corp. or Berry LLC. Nature of Business Berry Corp. is an independent oil and natural gas company that was incorporated under Delaware law in February 2017 and its common stock began trading on NASDAQ under the symbol “bry” in July 2018. Berry Corp. operates through its wholly-owned subsidiary, Berry LLC. Our properties are located onshore in the United States (the “U.S.”), in California (primarily in the San Joaquin basin), Utah (in the Uinta basin), and Colorado (in the Piceance basin). Principles of Consolidation and Reporting The condensed consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. In management’s opinion, the accompanying financial statements contain all normal, recurring adjustments that are necessary to fairly present our interim unaudited condensed consolidated financial statements. We eliminated all significant intercompany transactions and balances upon consolidation. For oil and gas exploration and production joint ventures in which we have a direct working interest, we account for our proportionate share of assets, liabilities, revenue, expense and cash flows within the relevant lines of the financial statements. We prepared this report pursuant to the rules and regulations of the U.S. Security and Exchange Commission (“SEC”) applicable to interim financial information, which permit the omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the disclosed information not misleading. The results reported in these unaudited condensed consolidated financial statements may not accurately forecast results for future periods. This Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2020. Reclassification We reclassified certain prior year amounts in the cash flow statements to conform to the current year presentation. These reclassifications had no material impact on the financial statements. Recently Adopted Accounting Standards In December 2019, the FASB issued rules which simplify the accounting for income taxes. We adopted these rules in the first quarter of 2021 which did not have a material impact on our financial statements. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes our outstanding debt: June 30, December 31, Interest Rate Maturity Security (in thousands) RBL Facility $ — $ — variable rates 3.0% (2021) and 4.0% (2020), respectively July 29, 2022 Mortgage on 85% of Present Value of proven oil and gas reserves and lien on certain other assets 2026 Notes 400,000 400,000 7.0% February 15, 2026 Unsecured Long-Term Debt - Principal Amount 400,000 400,000 Less: Debt Issuance Costs (5,991) (6,520) Long-Term Debt, net $ 394,009 $ 393,480 Deferred Financing Costs We incurred legal and bank fees related to the issuance of debt. At June 30, 2021 and December 31, 2020, debt issuance costs for the RBL Facility (as defined below) reported in “other noncurrent assets” on the balance sheet were approximately $5 million and $7 million net of amortization, respectively. At June 30, 2021 and December 31, 2020, debt issuance costs, net of amortization, for the unsecured notes due February 2026 (the “2026 Notes”) reported in “Long-Term Debt, net” on the balance sheet were approximately $6 million and $7 million, respectively. For the three months ended June 30, 2021 and 2020, the amortization expense for the RBL Facility and 2026 Notes were both approximately $1 million and was included in “interest expense” in the condensed consolidated statements of operations. For each of the six month periods ended June 30, 2021 and 2020, the amortization expense for both the RBL Facility and 2026 Notes was approximately $3 million. Fair Value Our debt is recorded at the carrying amount on the balance sheets. The carrying amount of the RBL Facility approximates fair value because the interest rates are variable and reflect market rates. The fair value of the 2026 Notes was approximately $408 million and $337 million at June 30, 2021 and December 31, 2020, respectively. The RBL Facility On July 31, 2017, we entered into a credit agreement that provided for a revolving loan with up to $1.5 billion of commitment, subject to a reserve borrowing base (“RBL Facility”). The RBL Facility provides a letter of credit subfacility for the issuance of letters of credit in an aggregate amount not to exceed $25 million. Issuances of letters of credit reduce the borrowing availability for revolving loans under the RBL Facility on a dollar for dollar basis. Borrowing base redeterminations generally become effective each May and November, although each of us and the administrative agent may make one interim redetermination between scheduled redeterminations. The RBL Facility has an elected commitment feature that allows us to increase commitments to the amount of our borrowing base with lender approval. In April 2021, we completed our scheduled semi-annual borrowing base redetermination under our RBL Facility, which resulted in a reaffirmed borrowing base and the Company's elected commitment at $200 million with no further borrowing restrictions beyond the covenants noted below. The RBL Facility contains customary events of default and remedies for credit facilities of a similar nature. If we do not comply with the financial and other covenants in the RBL Facility, the lenders may, subject to customary cure rights, require immediate payment of all amounts outstanding under the RBL Facility and exercise all of their other rights and remedies, including foreclosure on all of the collateral. The RBL Facility contains certain anti-cash hoarding provisions, including the requirement to repay outstanding loans on a weekly basis in the amount of any cash on the balance sheet (subject to certain exceptions) in excess of $30 million; and further limits to dividends and share repurchases. The RBL Facility matures on July 29, 2022, unless terminated earlier in accordance with the RBL Facility terms. The RBL Facility requires us to maintain on a consolidated basis as of each quarter-end (i) a Leverage Ratio of no more than 4.0 to 1.0 and (ii) a Current Ratio of at least 1.0 to 1.0. The RBL Facility also contains customary restrictions. As of June 30, 2021, our Leverage Ratio and Current Ratio were 2.1 to 1.0 and 2.2 to 1.0, respectively. In addition, the RBL Facility currently provides that to the extent we incur unsecured indebtedness, including any amounts raised in the future, the borrowing base will be reduced by an amount equal to 25% of the amount of such unsecured debt. We were in compliance with all financial covenants under the RBL Facility as of June 30, 2021. The RBL Facility permits us to repurchase equity and indebtedness, among other things, if availability is equal to or greater than 20% of the elected commitments or borrowing base, whichever is in effect, and our pro forma leverage ratio is less than or equal to 2.5 to 1.0. As of June 30, 2021, we had no borrowings outstanding, $7 million in letters of credit outstanding, and approximately $193 million of available borrowings capacity under the RBL Facility. Bond Repurchase Program In February 2020, our Board of Directors adopted a program to spend up to $75 million for the opportunistic repurchase of our 2026 Notes. The manner, timing and amount of any purchases will be determined based on our evaluation of market conditions, compliance with outstanding agreements and other factors, may be commenced or suspended at any time without notice and does not obligate Berry Corp. to purchase the 2026 Notes during any period or at all. We have not yet repurchased any bonds under this program. Corporate Organization Berry Corp., as Berry LLC’s parent company, has no independent assets or operations. Any guarantees of potential future registered debt securities by Berry Corp. or Berry LLC would be full and unconditional. Berry Corp. and Berry LLC currently do not have any other subsidiaries. In addition, there are no significant restrictions upon the ability of Berry LLC to distribute funds to Berry Corp. by distribution or loan other than under the RBL Facility. None of the assets of Berry Corp. or Berry LLC represent restricted net assets. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives We utilize derivatives, such as swaps, puts and calls, to hedge a portion of our forecasted oil and gas production and gas purchases to reduce exposure to fluctuations in oil and natural gas prices, which addresses our market risk. We target covering our operating expenses and a majority of our fixed charges, which includes capital needed to sustain production levels, as well as interest and dividends as applicable, with the oil and gas sales hedges for a period of up to two years out. Additionally, we target fixing the price for a large portion of our natural gas purchases used in our steam operations for up to two years. We also, from time to time, have entered into agreements to purchase a portion of the natural gas we require for our operations, which we do not record at fair value as derivatives because they qualify for normal purchases and normal sales exclusions. For fixed-price oil and gas sales swaps, we are the seller, so we make settlement payments for prices above the indicated weighted-average price per barrel and per mmbtu, respectively, and receive settlement payments for prices below the indicated weighted-average price per barrel and per mmbtu, respectively. For fixed-price gas purchase swaps, we are the buyer so we make settlement payments for prices below the weighted-average price per mmbtu and receive settlement payments for prices above the weighted-average price per mmbtu. We use oil and gas swaps and puts to protect our sales against decreases in oil and gas prices. We also use swaps to protect our natural gas purchases against increases in prices. We do not enter into derivative contracts for speculative trading purposes and have not accounted for our derivatives as cash-flow or fair-value hedges. The changes in fair value of these instruments are recorded in current earnings. Gains (losses) on oil and gas sales hedges are classified in the revenues and other section of the statement of operations, while natural gas purchase hedges are included in expenses and other section of the statement of operations. As of June 30, 2021, we had the following crude oil production and gas purchase hedges. Q3 2021 Q4 2021 FY 2022 Fixed Price Oil Swaps (Brent): Hedged volume (mbbls) 1,318 1,318 1,095 Weighted-average price ($/bbl) $ 48.66 $ 48.66 $ 60.00 Fixed Price Gas Purchase Swaps (Kern, Delivered): Hedged volume (mmbtu) 4,830,000 2,085,000 — Weighted-average price ($/mmbtu) $ 2.83 $ 2.95 $ — As of June 30, 2021 we also had open swap positions that are excluded from the table above where we are both buyer and seller of equal notional volumes of 12,500 mmbtu/d of fixed price gas sales swaps each indexed to Northwest Pipeline Rocky Mountains and CIG, for the period July 1, 2021 through December 31, 2021. These swap positions effectively cancel each other while resulting in a mark-to-market gain of $1 million. This gain will be cash settled in 2021 as the positions expire. Our commodity derivatives are measured at fair value using industry-standard models with various inputs including publicly available underlying commodity prices and forward curves, and all are classified as Level 2 in the required fair value hierarchy for the periods presented. These commodity derivatives are subject to counterparty netting. The following tables present the fair values (gross and net) of our outstanding derivatives as of June 30, 2021 and December 31, 2020: June 30, 2021 Balance Sheet Gross Amounts Gross Amounts Offset Net Fair Value Presented (in thousands) Assets: Commodity Contracts Current assets $ 20,876 $ (9,361) $ 11,515 Liabilities: Commodity Contracts Current liabilities (70,837) 9,361 (61,476) Commodity Contracts Non-current liabilities (4,058) — (4,058) Total derivatives $ (54,019) $ — $ (54,019) December 31, 2020 Balance Sheet Gross Amounts Gross Amounts Offset Net Fair Value Presented (in thousands) Assets: Commodity Contracts Current assets $ 15,217 $ (12,710) $ 2,507 Liabilities: Commodity Contracts Current liabilities (36,031) 12,710 (23,321) Total derivatives $ (20,814) $ — $ (20,814) By using derivative instruments to economically hedge exposure to changes in commodity prices, we expose ourselves to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk. We do not receive collateral from our counterparties. We minimize the credit risk in derivative instruments by limiting our exposure to any single counterparty. In addition, our RBL Facility prevents us from entering into hedging arrangements that are secured, except with our lenders and their affiliates that have margin call requirements, that otherwise require us to provide collateral or with a non-lender counterparty that does not have an A- or A3 credit rating or better from Standards & Poor’s or Moody’s, respectively. In accordance with our standard practice, our commodity derivatives are subject to counterparty netting under agreements governing such derivatives which partially mitigates the counterparty nonperformance risk. |
Lawsuits, Claims, Commitments a
Lawsuits, Claims, Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lawsuits, Claims, Commitments and Contingencies | Lawsuits, Claims, Commitments and Contingencies In the normal course of business, we, or our subsidiary, are the subject of, or party to, pending or threatened legal proceedings, contingencies and commitments involving a variety of matters that seek, or may seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, fines and penalties, remediation costs, or injunctive or declaratory relief. We accrue for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. We have not recorded a material balance at June 30, 2021 or December 31, 2020. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of accruals on our balance sheet would not be material to our consolidated financial position or results of operations. We, or our subsidiary, or both, have indemnified various parties against specific liabilities those parties might incur in the future in connection with transactions that they have entered into with us. As of June 30, 2021, we are not aware of material indemnity claims pending or threatened against us. We have certain commitments under contracts, including purchase commitments for goods and services. Prior to our 2017 emergence, Berry entered into a Carry and Earning Agreement with Encana, effective June 7, 2006, in connection with our Piceance assets which, among other things, required us to either build a road or secure a license for alternative access, in lieu of paying a $6 million penalty. As of December 31, 2019, we fulfilled the obligation by delivering the access license pursuant to the agreement. On January 30, 2020, Caerus Piceance LLC, the successor of Encana's interests filed a claim in the City and County of Denver District Court challenging the sufficiency of such access, which we dispute. We will continue to defend the matter vigorously, however, given the uncertainty of litigation and the stage of the case, among other things, at this time we cannot estimate the likelihood or an amount of possible loss, that may result from this action. We recently entered into new pipeline capacity agreements for the shipment of natural gas from the Rockies to our assets in California that will reduce our exposure to fuel gas purchase price fluctuations. These capacity agreements are for approximately 10,000 mmbtu/d beginning October 2021 through October 2036 and approximately 5,500 mmbtu/d beginning November 2021 through December 2024 for a total commitment of $32 million. Securities Litigation Matter On November, 20, 2020, Luis Torres, individually and on behalf of a putative class, filed a securities class action lawsuit (the “Torres Lawsuit”) in the United States District Court for the Northern District of Texas against Berry Corp. and certain of its current and former directors and officers (the “Defendants”). The complaint alleges that the Defendants made false and misleading statements during the Class Period and in the offering materials for the IPO, concerning the Company’s business, operational efficiency and stability, and compliance policies, that artificially inflated the Company’s stock price, resulting in injury to the purported class members when the value of Berry Corp.’s common stock declined following release of its financial results for the third quarter of 2020. The complaint does not quantify the alleged losses but seeks to recover all damages sustained by the putative class as a result of these alleged securities violations, as well as attorneys’ fees and costs. On January 21, 2021, motions were filed in the Torres Lawsuit as plaintiffs sought to be appointed lead plaintiff and lead counsel. We dispute these claims and intend to defend the matter vigorously. Given the uncertainty of litigation, the preliminary stage of the case, and the legal standards that must be met for, among other things, class certification and success on the merits, we cannot reasonably estimate the possible loss or range of loss that may result from this action. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Equity | Equity Cash Dividends Our Board of Directors approved a regular cash dividend of $0.04 per share on our common stock for the first and second quarters of 2021. We paid the first and the second quarter cash dividend in April and July 2021, respectively. The Board of Directors approved a $0.06 per share regular cash dividend on our common stock for the third quarter of 2021, which is expected to be paid in October 2021. Stock Repurchase Program In December 2018, our Board of Directors adopted a program for the opportunistic repurchase of up to $100 million of our common stock. Based on the Board’s evaluation of market conditions for our common stock at the time, they authorized repurchases of up to $50 million under the program. The Company repurchased a total of 5,057,682 shares under the stock repurchase program for approximately $50 million in 2018 and 2019. In February 2020, the Board of Directors authorized the repurchase of the remaining $50 million of our $100 million repurchase program. Repurchases may be made from time to time in the open market, in privately negotiated transactions or by other means, as determined in the Company's sole discretion. The manner, timing and amount of any purchases will be determined based on our evaluation of market conditions, stock price, compliance with outstanding agreements and other factors, may be commenced or suspended at any time without notice and does not obligate Berry Corp. to purchase shares during any period or at all. Any shares acquired will be available for general corporate purposes. We have not repurchased any shares under the stock repurchase program since 2019. Stock-Based Compensation In February 2021, the Company granted awards of 1,832,941 shares of restricted stock units (“RSUs”), which will vest annually in equal amounts over three years and 997,840 performance-based restricted stock units (“PSUs”), which will cliff vest, if at all, at the end of a three year performance period. The fair value of these awards was approximately $14 million. The RSUs awarded in February 2021 are solely time-based awards. Of the PSUs awarded in February 2021, (a) 50% of such will vest, if at all, based on a total stockholder return (“TSR”) performance metric (the “TSR PSUs”), which is defined as the capital gains per share of stock plus dividends paid assuming reinvestment, with TSR measured on an absolute basis and relative to the TSR of the 39 exploration and production companies in the Vanguard World Fund - Vanguard Energy ETF Index plus the S&P SmallCap 600 Value Index (collectively, the “Peer Group”) during the performance period; and (b) the other 50% of such will vest, if at all, based on the Company's average cash returned on invested capital (“CROIC PSUs”) over the performance period. Depending on the results achieved during the three-year performance period, the actual number of shares that a grant recipient receives at the end of the period may range from 0% to 250% of the TSR PSUs granted and from 0% to 200% of the CROIC PSUs granted. The fair value of the RSUs and CROIC PSUs was determined using the grant date stock price. The fair value of the TSR PSUs was determined using a Monte Carlo simulation analysis to estimate the total shareholder return ranking of the Company, including a comparison against the Peer Group over the performance periods. The expected volatility of the Company’s common stock at the date of grant was estimated based on average volatility rates for the Company and selected guideline public companies. The dividend yield assumption was based on the then current annualized declared dividend. The risk-free interest rate assumption was based on observed interest rates consistent with the approximate three-year performance measurement period. |
Supplemental Disclosures to the
Supplemental Disclosures to the Financial Statements | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Disclosures to the Financial Statements | Supplemental Disclosures to the Financial Statements Other current assets reported on the condensed consolidated balance sheets included the following: June 30, 2021 December 31, 2020 (in thousands) Prepaid expenses $ 12,544 $ 3,592 Materials and supplies 10,847 11,666 Oil inventories 3,273 3,490 Other 226 652 Total other current assets $ 26,890 $ 19,400 Other non-current assets at June 30, 2021 and December 31, 2020, included approximately $5 million and $7 million of deferred financing costs, net of amortization, respectively. Accounts payable and accrued expenses on the condensed consolidated balance sheets included the following: June 30, 2021 December 31, 2020 (in thousands) Accounts payable-trade $ 11,820 $ 11,055 Accrued expenses 56,223 43,452 Royalties payable 17,522 15,150 Greenhouse gas liability - current portion 29,060 35,554 Taxes other than income tax liability 11,439 10,118 Accrued interest 10,500 10,783 Dividends payable 3,217 — Asset retirement obligations - current portion 20,000 25,000 Other 805 873 Total accounts payable and accrued expenses $ 160,586 $ 151,985 The increase of $4 million in the long-term portion of the asset retirement obligations from $135 million at December 31, 2020 to $139 million at June 30, 2021 was due to $5 million of accretion, $1 million of liabilities incurred and reclassification of $5 million from current to long-term portion due to changes in anticipated spending and regulatory requirements. These increases were partially offset by $7 million of liabilities settled during the period. Other non-current liabilities at June 30, 2021 and December 31, 2020 included approximately $5 million and no greenhouse gas liability, respectively. Supplemental Information on the Statement of Operations For the three months ended June 30, 2021, other operating expense mainly consisted of $2 million of supplemental property tax assessments and royalty audit charges, mostly offset by $2 million of employee retention credits. For three months ended June 30, 2020, other operating income was $1 million and mainly consisted of sales tax and bankruptcy-related refunds, partially offset by excess abandonment costs and drilling rig standby charges. For the six months ended June 30, 2021 and 2020 other operating expenses were $1 million. For the six months ended June 30, 2021, other operating expenses mainly consisted of approximately $3 million of supplemental property tax assessments and royalty audit charges and tank rental costs, partially offset by $2 million of employee retention credits. For the six months ended June 30, 2020, other operating expense mainly consist of excess abandonment costs, drilling rig standby charges, partially offset by sales tax and bankruptcy-related refunds. Supplemental Cash Flow Information Supplemental disclosures to the condensed consolidated statements of cash flows are presented below: Six Months Ended 2021 2020 (in thousands) Supplemental Disclosures of Significant Non-Cash Investing Activities: Material inventory transfers to oil and natural gas properties $ 1,437 $ 911 Supplemental Disclosures of Cash Payments (Receipts): Interest, net of amounts capitalized $ 14,925 $ 15,527 Income taxes payments $ — $ 2 Cash and cash equivalents consist primarily of highly liquid investments with original maturities of three months or less and are stated at cost, which approximates fair value. As part of our cash management system, we use a controlled disbursement account to fund cash distribution checks presented for payment by the holder. Checks issued but not yet presented to banks may result in overdraft balances for accounting purposes and have been included in “accounts payable and accrued expenses” in the condensed consolidated balance sheets, amounts are approximately $2 million as of June 30, 2021 and December 31, 2020. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We calculate basic earnings (loss) per share by dividing net income (loss) by the weighted-average number of common shares outstanding for each period presented. Common shares issuable upon the satisfaction of certain conditions pursuant to a contractual agreement, are considered common shares outstanding and are included in the computation of net income (loss) per share. The RSUs and PSUs are not a participating security as the dividends are forfeitable. For the three and six months ended June 30, 2021 and 2020, no incremental RSUs or PSUs were included in the diluted EPS calculation as their effect was anti-dilutive under the “if converted” method. Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands except per share amounts) Basic EPS calculation Net loss $ (12,881) $ (64,901) $ (34,203) $ (180,201) Weighted-average shares of common stock outstanding 80,471 79,795 80,294 79,702 Basic loss per share $ (0.16) $ (0.81) $ (0.43) $ (2.26) Diluted EPS calculation Net loss $ (12,881) $ (64,901) $ (34,203) $ (180,201) Weighted-average shares of common stock outstanding 80,471 79,795 80,294 79,702 Dilutive effect of potentially dilutive securities (1) — — — — Weighted-average common shares outstanding - diluted 80,471 79,795 80,294 79,702 Diluted loss per share $ (0.16) $ (0.81) $ (0.43) $ (2.26) __________ (1) We excluded approximately 2.9 million and 0.8 million dilutive securities from the dilutive weighted-average common shares outstanding for the three months ended June 30, 2021 and 2020, because their effect was anti-dilutive. We excluded approximately 2.6 million and 0.8 million dilutive securities from the dilutive weighted-average common shares outstanding for the six months ended June 30, 2021 and 2020, because their effect was anti-dilutive. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We derive most of our revenue from sales of oil, natural gas and NGLs, with the remaining revenue generated from sales of electricity and marketing activities related to transporting and marketing third-party volumes. The following table provides disaggregated revenue for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Oil sales $ 141,309 $ 67,512 $ 263,668 $ 185,822 Natural gas sales 5,415 2,834 17,492 6,202 Natural gas liquids sales 1,051 169 1,880 589 Electricity sales 6,888 4,884 16,957 10,345 Marketing revenues 121 292 2,355 745 Other revenues 118 29 255 53 Revenues from contracts with customers 154,902 75,720 302,607 203,756 (Losses) gains on oil and gas sales derivatives (55,653) (42,267) (109,157) 168,962 Total revenues and other $ 99,249 $ 33,453 $ 193,450 $ 372,718 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Reporting | Principles of Consolidation and Reporting The condensed consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. In management’s opinion, the accompanying financial statements contain all normal, recurring adjustments that are necessary to fairly present our interim unaudited condensed consolidated financial statements. We eliminated all significant intercompany transactions and balances upon consolidation. For oil and gas exploration and production joint ventures in which we have a direct working interest, we account for our proportionate share of assets, liabilities, revenue, expense and cash flows within the relevant lines of the financial statements. |
Reclassification | ReclassificationWe reclassified certain prior year amounts in the cash flow statements to conform to the current year presentation. These reclassifications had no material impact on the financial statements. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In December 2019, the FASB issued rules which simplify the accounting for income taxes. We adopted these rules in the first quarter of 2021 which did not have a material impact on our financial statements. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes our outstanding debt: June 30, December 31, Interest Rate Maturity Security (in thousands) RBL Facility $ — $ — variable rates 3.0% (2021) and 4.0% (2020), respectively July 29, 2022 Mortgage on 85% of Present Value of proven oil and gas reserves and lien on certain other assets 2026 Notes 400,000 400,000 7.0% February 15, 2026 Unsecured Long-Term Debt - Principal Amount 400,000 400,000 Less: Debt Issuance Costs (5,991) (6,520) Long-Term Debt, net $ 394,009 $ 393,480 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Transactions Resulting in Crude Oil Production and Gas Purchases Hedges | As of June 30, 2021, we had the following crude oil production and gas purchase hedges. Q3 2021 Q4 2021 FY 2022 Fixed Price Oil Swaps (Brent): Hedged volume (mbbls) 1,318 1,318 1,095 Weighted-average price ($/bbl) $ 48.66 $ 48.66 $ 60.00 Fixed Price Gas Purchase Swaps (Kern, Delivered): Hedged volume (mmbtu) 4,830,000 2,085,000 — Weighted-average price ($/mmbtu) $ 2.83 $ 2.95 $ — |
Fair Values (Gross and Net) of Outstanding Derivatives | The following tables present the fair values (gross and net) of our outstanding derivatives as of June 30, 2021 and December 31, 2020: June 30, 2021 Balance Sheet Gross Amounts Gross Amounts Offset Net Fair Value Presented (in thousands) Assets: Commodity Contracts Current assets $ 20,876 $ (9,361) $ 11,515 Liabilities: Commodity Contracts Current liabilities (70,837) 9,361 (61,476) Commodity Contracts Non-current liabilities (4,058) — (4,058) Total derivatives $ (54,019) $ — $ (54,019) December 31, 2020 Balance Sheet Gross Amounts Gross Amounts Offset Net Fair Value Presented (in thousands) Assets: Commodity Contracts Current assets $ 15,217 $ (12,710) $ 2,507 Liabilities: Commodity Contracts Current liabilities (36,031) 12,710 (23,321) Total derivatives $ (20,814) $ — $ (20,814) |
Supplemental Disclosures to t_2
Supplemental Disclosures to the Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Current Assets | Other current assets reported on the condensed consolidated balance sheets included the following: June 30, 2021 December 31, 2020 (in thousands) Prepaid expenses $ 12,544 $ 3,592 Materials and supplies 10,847 11,666 Oil inventories 3,273 3,490 Other 226 652 Total other current assets $ 26,890 $ 19,400 |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses on the condensed consolidated balance sheets included the following: June 30, 2021 December 31, 2020 (in thousands) Accounts payable-trade $ 11,820 $ 11,055 Accrued expenses 56,223 43,452 Royalties payable 17,522 15,150 Greenhouse gas liability - current portion 29,060 35,554 Taxes other than income tax liability 11,439 10,118 Accrued interest 10,500 10,783 Dividends payable 3,217 — Asset retirement obligations - current portion 20,000 25,000 Other 805 873 Total accounts payable and accrued expenses $ 160,586 $ 151,985 |
Supplemental Disclosures to the Statements of Cash Flows | Supplemental disclosures to the condensed consolidated statements of cash flows are presented below: Six Months Ended 2021 2020 (in thousands) Supplemental Disclosures of Significant Non-Cash Investing Activities: Material inventory transfers to oil and natural gas properties $ 1,437 $ 911 Supplemental Disclosures of Cash Payments (Receipts): Interest, net of amounts capitalized $ 14,925 $ 15,527 Income taxes payments $ — $ 2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands except per share amounts) Basic EPS calculation Net loss $ (12,881) $ (64,901) $ (34,203) $ (180,201) Weighted-average shares of common stock outstanding 80,471 79,795 80,294 79,702 Basic loss per share $ (0.16) $ (0.81) $ (0.43) $ (2.26) Diluted EPS calculation Net loss $ (12,881) $ (64,901) $ (34,203) $ (180,201) Weighted-average shares of common stock outstanding 80,471 79,795 80,294 79,702 Dilutive effect of potentially dilutive securities (1) — — — — Weighted-average common shares outstanding - diluted 80,471 79,795 80,294 79,702 Diluted loss per share $ (0.16) $ (0.81) $ (0.43) $ (2.26) __________ (1) We excluded approximately 2.9 million and 0.8 million dilutive securities from the dilutive weighted-average common shares outstanding for the three months ended June 30, 2021 and 2020, because their effect was anti-dilutive. We excluded approximately 2.6 million and 0.8 million dilutive securities from the dilutive weighted-average common shares outstanding for the six months ended June 30, 2021 and 2020, because their effect was anti-dilutive. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides disaggregated revenue for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Oil sales $ 141,309 $ 67,512 $ 263,668 $ 185,822 Natural gas sales 5,415 2,834 17,492 6,202 Natural gas liquids sales 1,051 169 1,880 589 Electricity sales 6,888 4,884 16,957 10,345 Marketing revenues 121 292 2,355 745 Other revenues 118 29 255 53 Revenues from contracts with customers 154,902 75,720 302,607 203,756 (Losses) gains on oil and gas sales derivatives (55,653) (42,267) (109,157) 168,962 Total revenues and other $ 99,249 $ 33,453 $ 193,450 $ 372,718 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-Term Debt - Principal Amount | $ 400,000 | $ 400,000 |
Less: Debt Issuance Costs | (5,991) | (6,520) |
Long-Term Debt, net | 394,009 | 393,480 |
2026 Notes | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Long-Term Debt - Principal Amount | $ 400,000 | 400,000 |
Interest Rate | 7.00% | |
Revolving Credit Facility | RBL Facility | Line of credit | ||
Debt Instrument [Line Items] | ||
Long-Term Debt - Principal Amount | $ 0 | $ 0 |
Security | 85.00% | |
Line of credit | RBL Facility | ||
Debt Instrument [Line Items] | ||
Variable rate | 3.00% | 4.00% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Apr. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Feb. 27, 2020USD ($) | Jul. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||||||||
Debt issuance costs for the 2026 Senior Unsecured Notes | $ 5,991,000 | $ 5,991,000 | $ 6,520,000 | |||||
Amortization of debt issuance costs | $ 2,728,000 | $ 2,681,000 | ||||||
Maximum pro forma leverage ratio allowable which will permit repurchase of equity and indebtedness | 2.5 | |||||||
Bond repurchase program, authorized amount | $ 75,000,000 | |||||||
Minimum availability of borrowing base required which will permit distributions to parent company | 20.00% | 20.00% | ||||||
Interest Expense | ||||||||
Debt Instrument [Line Items] | ||||||||
Amortization of debt issuance costs | $ 1,000,000 | $ 1,000,000 | $ 3,000,000 | $ 3,000,000 | ||||
RBL Facility | Letter of credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 25,000,000 | |||||||
RBL Facility | Line of credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Leverage ratio (no more than) | 4 | |||||||
Current ratio (at least) | 1 | |||||||
Leverage ratio at period end | 2.1 | 2.1 | ||||||
Current ratio at period end | 2.2 | 2.2 | ||||||
Reduction in borrowing base if unsecured indebtedness is incurred | 25.00% | |||||||
Minimum availability of borrowing base required which will permit repurchase of equity and indebtedness | 20.00% | |||||||
Letters of credit outstanding | $ 7,000,000 | $ 7,000,000 | ||||||
Maximum pro forma leverage ratio allowable which will permit distributions to parent company | 2.5 | 2.5 | ||||||
RBL Facility | Line of credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | $ 0 | $ 0 | ||||||
RBL Facility | Line of credit | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs for the RBL Facility | 5,000,000 | 5,000,000 | 7,000,000 | |||||
Maximum borrowing capacity | $ 1,500,000,000 | |||||||
Borrowing base | $ 200,000,000 | |||||||
Repayment of loans outstanding for amounts exceeding cash reported | $ 30,000,000 | |||||||
Available borrowing capacity | 193,000,000 | 193,000,000 | ||||||
2026 Notes | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of debt | $ 408,000,000 | $ 408,000,000 | $ 337,000,000 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Thousands | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2021USD ($)MMBTU | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($) | |
Derivative [Line Items] | |||
Target period to cover operating expenses and fixed charges (up to) | 2 years | ||
Target period for fixing the price natural gas purchases used in steam operations (up to) | 2 years | ||
Gain on derivative | $ (69,788) | $ 156,002 | |
Northwest Pipeline Rocky Mountains And CIG Fixed Price Oils And Gas Swaps Contracts | |||
Derivative [Line Items] | |||
Fixed price swaps as buyer and seller (in MMBtu) | MMBTU | 12,500 | ||
Northwest Pipeline Rocky Mountains And CIG Fixed Price Oils And Gas Swaps Contracts | Forecast | |||
Derivative [Line Items] | |||
Gain on derivative | $ 1,000 |
Derivatives - Derivative Transa
Derivatives - Derivative Transactions Resulting in Hedged Gas Contracts Outstanding (Details) - Forecast MBbls in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021MMBTU$ / bbl$ / MMBtuMBbls | Sep. 30, 2021MMBTU$ / MMBtu$ / bblMBbls | Dec. 31, 2022MMBTU$ / bbl$ / MMBtuMBbls | |
Fixed Price Oil Swaps (Brent) | |||
Derivative [Line Items] | |||
Hedged volume (mbbls) | MBbls | 1,318 | 1,318 | 1,095 |
Weighted-average price ($/bbl) | $ / bbl | 48.66 | 48.66 | 60 |
Fixed Price Gas Purchase Swaps (Kern, Delivered) | |||
Derivative [Line Items] | |||
Hedged volume (mmbtu) | MMBTU | 2,085,000 | 4,830,000 | 0 |
Weighted-average price ($/mmbtu) | $ / MMBtu | 2.95 | 2.83 | 0 |
Derivatives - Fair Values (Gros
Derivatives - Fair Values (Gross and Net) of Outstanding Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Liabilities: | ||
Total derivatives | $ (54,019) | $ (20,814) |
Commodity Contracts | Current assets | ||
Assets: | ||
Gross Amounts Recognized at Fair Value | 20,876 | 15,217 |
Gross Amounts Offset in the Balance Sheet | (9,361) | (12,710) |
Net Fair Value Presented in the Balance Sheet | 11,515 | 2,507 |
Commodity Contracts | Current liabilities | ||
Liabilities: | ||
Gross Amounts Recognized at Fair Value | (70,837) | (36,031) |
Gross Amounts Offset in the Balance Sheet | 9,361 | 12,710 |
Net Fair Value Presented in the Balance Sheet | (61,476) | $ (23,321) |
Commodity Contracts | Non-current liabilities | ||
Liabilities: | ||
Gross Amounts Recognized at Fair Value | (4,058) | |
Gross Amounts Offset in the Balance Sheet | 0 | |
Net Fair Value Presented in the Balance Sheet | $ (4,058) |
Lawsuits, Claims, Commitments_2
Lawsuits, Claims, Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2021USD ($)MMBTU | Jun. 07, 2006USD ($) | |
Long-term Purchase Commitment [Line Items] | ||
Commitments under contracts | $ | $ 6 | |
Long-term purchase commitment amount | $ | $ 32 | |
Shipment Of Natural Gas, Beginning October 2021 Thru October 2036 | ||
Long-term Purchase Commitment [Line Items] | ||
Long-term purchase commitment amount (in mmbtu/d) | MMBTU | 10,000 | |
Shipment Of Natural Gas, Beginning November 2021 Thru December 2024 | ||
Long-term Purchase Commitment [Line Items] | ||
Long-term purchase commitment amount (in mmbtu/d) | MMBTU | 5,500 |
Equity (Details)
Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 13 Months Ended | 18 Months Ended | |||||||
Jul. 31, 2021 | Apr. 30, 2021 | Feb. 28, 2021 | Feb. 29, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock, dividends paid (in dollars per share) | $ 0.04 | ||||||||||
Dividends declared on common stock (in dollars per share) | $ 0.04 | $ 0.04 | $ 0.12 | ||||||||
Number of shares repurchased | 5,057,682 | 0 | |||||||||
Price of shares repurchased | $ 50,000,000 | ||||||||||
Fair value of awards granted | $ 14,000,000 | ||||||||||
Subsequent Event | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock, dividends paid (in dollars per share) | $ 0.04 | ||||||||||
Dividends declared on common stock (in dollars per share) | $ 0.06 | ||||||||||
Restricted Stock Units (RSUs) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Grants in period (in shares) | 1,832,941 | ||||||||||
Vesting period | 3 years | ||||||||||
Performance-based Restricted Stock Units (PSUs) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Grants in period (in shares) | 997,840 | ||||||||||
Vesting period | 3 years | ||||||||||
Performance-based Restricted Stock Units (PSUs) | Share-based Payment Arrangement, Tranche One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting rights | 50.00% | ||||||||||
Performance-based Restricted Stock Units (PSUs) | Share-based Payment Arrangement, Tranche Two | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting rights | 50.00% | ||||||||||
Minimum | Performance-based Restricted Stock Units (PSUs) | Share-based Payment Arrangement, Tranche One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Possible range of shares received over amount granted | 0.00% | ||||||||||
Minimum | Performance-based Restricted Stock Units (PSUs) | Share-based Payment Arrangement, Tranche Two | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Possible range of shares received over amount granted | 0.00% | ||||||||||
Maximum | Performance-based Restricted Stock Units (PSUs) | Share-based Payment Arrangement, Tranche One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Possible range of shares received over amount granted | 250.00% | ||||||||||
Maximum | Performance-based Restricted Stock Units (PSUs) | Share-based Payment Arrangement, Tranche Two | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Possible range of shares received over amount granted | 200.00% | ||||||||||
Stock Repurchase Program | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Authorized amount of repurchases | $ 100,000,000 | $ 100,000,000 | |||||||||
Authorized current repurchases | $ 50,000,000 | ||||||||||
Stock Repurchase Program, Current Repurchases Authorized | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Authorized amount of repurchases | $ 50,000,000 |
Supplemental Disclosures to t_3
Supplemental Disclosures to the Financial Statements - Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 12,544 | $ 3,592 |
Materials and supplies | 10,847 | 11,666 |
Oil inventories | 3,273 | 3,490 |
Other | 226 | 652 |
Total other current assets | $ 26,890 | $ 19,400 |
Supplemental Disclosures to t_4
Supplemental Disclosures to the Financial Statements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Reclassification [Line Items] | |||||
Deferred financing costs, net of amortization | $ 5,000 | $ 5,000 | $ 7,000 | ||
Asset retirement obligation, increase | 4,000 | ||||
Asset retirement obligation, noncurrent | 139,181 | 139,181 | 135,192 | ||
Asset retirement obligation, accretion expense | 5,000 | ||||
Asset retirement obligation, liabilities incurred | 1,000 | ||||
Asset retirement obligations - current portion | 20,000 | 20,000 | 25,000 | ||
Asset retirement obligation, liabilities settled | 7,000 | ||||
Greenhouse gas liability, noncurrent | 5,000 | 5,000 | 0 | ||
Supplemental property tax assessments and royalty audit charges and tank rental costs | 2,000 | 3,000 | |||
Employee retention credits | 2,000 | 2,000 | |||
Other operating income (expense) | (42) | $ 1,192 | (841) | $ (1,010) | |
Bank overdrafts | 2,000 | 2,000 | $ 2,000 | ||
Revision of Prior Period, Reclassification, Adjustment | |||||
Reclassification [Line Items] | |||||
Asset retirement obligation, noncurrent | 5,000 | 5,000 | |||
Asset retirement obligations - current portion | $ (5,000) | $ (5,000) |
Supplemental Disclosures to t_5
Supplemental Disclosures to the Financial Statements - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable-trade | $ 11,820 | $ 11,055 |
Accrued expenses | 56,223 | 43,452 |
Royalties payable | 17,522 | 15,150 |
Greenhouse gas liability - current portion | 29,060 | 35,554 |
Taxes other than income tax liability | 11,439 | 10,118 |
Accrued interest | 10,500 | 10,783 |
Dividends payable | 3,217 | 0 |
Asset retirement obligations - current portion reclassification to long term portion | 20,000 | 25,000 |
Other | 805 | 873 |
Total accounts payable and accrued expenses | $ 160,586 | $ 151,985 |
Supplemental Disclosures to t_6
Supplemental Disclosures to the Financial Statements - Supplemental Disclosures to the Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Supplemental Disclosures of Significant Non-Cash Investing Activities: | ||
Material inventory transfers to oil and natural gas properties | $ 1,437 | $ 911 |
Supplemental Disclosures of Cash Payments (Receipts): | ||
Interest, net of amounts capitalized | 14,925 | 15,527 |
Income taxes payments | $ 0 | $ 2 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restricted Stock Units (RSUs) and Performance-based Restricted Stock Units (PSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 0 | 0 | 0 | 0 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic EPS calculation | ||||
Net loss | $ (12,881) | $ (64,901) | $ (34,203) | $ (180,201) |
Weighted-average shares of common stock outstanding (in shares) | 80,471 | 79,795 | 80,294 | 79,702 |
Basic loss per share (in dollars per share) | $ (0.16) | $ (0.81) | $ (0.43) | $ (2.26) |
Diluted EPS calculation | ||||
Net loss | $ (12,881) | $ (64,901) | $ (34,203) | $ (180,201) |
Weighted-average shares of common stock outstanding (in shares) | 80,471 | 79,795 | 80,294 | 79,702 |
Dilutive effect of potentially dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Weighted-average common shares outstanding - diluted (in shares) | 80,471 | 79,795 | 80,294 | 79,702 |
Diluted loss per share (in dollars per share) | $ (0.16) | $ (0.81) | $ (0.43) | $ (2.26) |
Restricted Stock Units (RSUs) and Performance-based Restricted Stock Units (PSUs) | ||||
Diluted EPS calculation | ||||
Potentially dilutive securities (in shares) | 2,900 | 800 | 2,600 | 800 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 154,902 | $ 75,720 | $ 302,607 | $ 203,756 |
(Losses) gains on derivatives | (69,788) | 156,002 | ||
Total revenues and other | 99,249 | 33,453 | 193,450 | 372,718 |
Oil sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 141,309 | 67,512 | 263,668 | 185,822 |
Natural gas sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5,415 | 2,834 | 17,492 | 6,202 |
(Losses) gains on derivatives | 11,639 | (925) | 39,369 | (12,960) |
Natural gas liquids sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,051 | 169 | 1,880 | 589 |
Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 6,888 | 4,884 | 16,957 | 10,345 |
Marketing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 121 | 292 | 2,355 | 745 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 118 | 29 | 255 | 53 |
(Losses) gains on oil and gas sales derivatives | ||||
Disaggregation of Revenue [Line Items] | ||||
(Losses) gains on derivatives | $ (55,653) | $ (42,267) | $ (109,157) | $ 168,962 |