Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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 $0.001 per share | |
Trading Symbol | BRY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 75,661,266 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Central Index Key | 0001705873 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 8,566 | $ 46,250 |
Accounts receivable, net of allowance for doubtful accounts of $866 at June 30, 2023 and December 31, 2022 | 84,556 | 101,713 |
Derivative instruments | 8,718 | 36,367 |
Other current assets | 32,591 | 33,725 |
Total current assets | 134,431 | 218,055 |
Noncurrent assets: | ||
Oil and natural gas properties | 1,768,346 | 1,725,864 |
Accumulated depletion and amortization | (527,713) | (465,889) |
Total oil and natural gas properties, net | 1,240,633 | 1,259,975 |
Other property and equipment | 162,976 | 155,619 |
Accumulated depreciation | (68,037) | (55,781) |
Total other property and equipment, net | 94,939 | 99,838 |
Derivative instruments | 5,432 | 76 |
Deferred income taxes | 35,920 | 42,844 |
Other noncurrent assets | 10,348 | 10,242 |
Total assets | 1,521,703 | 1,631,030 |
Current liabilities: | ||
Accounts payable and accrued expenses | 137,745 | 203,101 |
Derivative instruments | 10,382 | 31,106 |
Total current liabilities | 148,127 | 234,207 |
Noncurrent liabilities: | ||
Long-term debt | 421,347 | 395,735 |
Derivative instruments | 1,074 | 13,642 |
Asset retirement obligations | 153,856 | 158,491 |
Other noncurrent liabilities | 36,724 | 28,470 |
Commitments and Contingencies - Note 4 | ||
Stockholders' Equity: | ||
Common stock ($0.001 par value; 750,000,000 shares authorized; 87,665,077 and 86,350,771 shares issued; and 75,661,266 and 75,767,503 shares outstanding, at June 30, 2023 and December 31, 2022, respectively) | 88 | 86 |
Additional paid-in-capital | 823,330 | 821,443 |
Treasury stock, at cost (12,003,811 and 10,583,268 shares at June 30, 2023 and December 31, 2022, respectively) | (113,768) | (103,739) |
Retained earnings | 50,925 | 82,695 |
Total stockholders' equity | 760,575 | 800,485 |
Total liabilities and stockholders' equity | $ 1,521,703 | $ 1,631,030 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 866 | $ 866 |
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) | 87,665,077 | 86,350,771 |
Common stock, shares outstanding (in shares) | 75,661,266 | 75,767,503 |
Treasury stock, at cost (in shares) | 12,003,811 | 10,583,268 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues and other: | ||||
Revenues | $ 208,491 | $ 293,788 | $ 424,961 | $ 549,728 |
Gains (losses) on oil and gas sales derivatives | 20,871 | (40,658) | 59,370 | (202,516) |
Total revenues and other | 229,362 | 253,130 | 484,331 | 347,212 |
Expenses and other: | ||||
Lease operating expenses | 54,707 | 72,455 | 189,542 | 135,579 |
Transportation expenses | 1,096 | 1,108 | 2,137 | 2,266 |
Marketing expenses | 0 | 0 | 0 | 299 |
Acquisition costs | 972 | 0 | 972 | 0 |
General and administrative expenses | 22,488 | 23,183 | 54,157 | 46,125 |
Depreciation, depletion, and amortization | 39,755 | 38,055 | 79,876 | 77,832 |
Taxes, other than income taxes | 13,707 | 11,214 | 24,167 | 17,819 |
Losses (gains) on natural gas purchase derivatives | 14,024 | 10,661 | 13,414 | (18,393) |
Other operating (income) expenses | (1,033) | 353 | (1,319) | 4,122 |
Total expenses and other | 184,072 | 199,860 | 439,901 | 346,415 |
Other (expenses) income: | ||||
Interest expense | (8,794) | (7,729) | (16,631) | (15,404) |
Other, net | (110) | (42) | (185) | (55) |
Total other expenses | (8,904) | (7,771) | (16,816) | (15,459) |
Income (loss) before income taxes | 36,386 | 45,499 | 27,614 | (14,662) |
Income tax expense (benefit) | 10,616 | 2,145 | 7,703 | (1,206) |
Net income (loss) | $ 25,770 | $ 43,354 | $ 19,911 | $ (13,456) |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.34 | $ 0.54 | $ 0.26 | $ (0.17) |
Diluted (in dollars per share) | $ 0.33 | $ 0.52 | $ 0.25 | $ (0.17) |
Oil, natural gas and natural gas liquids sales | ||||
Revenues and other: | ||||
Revenues | $ 157,703 | $ 240,071 | $ 324,060 | $ 450,422 |
Services revenue | ||||
Revenues and other: | ||||
Revenues | 47,674 | 46,178 | 92,297 | 86,014 |
Expenses and other: | ||||
Cost of goods sold | 37,083 | 36,709 | 73,182 | 70,181 |
Electricity sales | ||||
Revenues and other: | ||||
Revenues | 3,078 | 7,419 | 8,523 | 12,838 |
Expenses and other: | ||||
Cost of goods sold | 1,273 | 6,122 | 3,773 | 10,585 |
Marketing revenues | ||||
Revenues and other: | ||||
Revenues | 0 | 0 | 0 | 289 |
Other revenues | ||||
Revenues and other: | ||||
Revenues | $ 36 | $ 120 | $ 81 | $ 165 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings (Accumulated Deficit) |
Beginning balance at Dec. 31, 2021 | $ 692,648 | $ 86 | $ 912,471 | $ (52,436) | $ (167,473) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares withheld for payment of taxes on equity awards and other | (4,096) | (4,096) | |||
Stock based compensation | 3,920 | 3,920 | |||
Dividends declared on common stock | (5,236) | (5,236) | |||
Net income (loss) | (56,810) | (56,810) | |||
Ending balance at Mar. 31, 2022 | $ 630,426 | 86 | 907,059 | (52,436) | (224,283) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividends declared on common stock (in dollars per share) | $ 0.06 | ||||
Beginning balance at Dec. 31, 2021 | $ 692,648 | 86 | 912,471 | (52,436) | (167,473) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (13,456) | ||||
Ending balance at Jun. 30, 2022 | 640,769 | 86 | 896,808 | (75,196) | (180,929) |
Beginning balance at Mar. 31, 2022 | 630,426 | 86 | 907,059 | (52,436) | (224,283) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares withheld for payment of taxes on equity awards and other | (6) | (6) | |||
Stock based compensation | 4,720 | 4,720 | |||
Purchases of treasury stock | (22,760) | (22,760) | |||
Dividends declared on common stock | (14,965) | (14,965) | |||
Net income (loss) | 43,354 | 43,354 | |||
Ending balance at Jun. 30, 2022 | $ 640,769 | 86 | 896,808 | (75,196) | (180,929) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividends declared on common stock (in dollars per share) | $ 0.19 | ||||
Beginning balance at Dec. 31, 2022 | $ 800,485 | 86 | 821,443 | (103,739) | 82,695 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares withheld for payment of taxes on equity awards and other | (4,260) | (4,260) | |||
Stock based compensation | 4,989 | 4,989 | |||
Issuance of common stock | 2 | 2 | |||
Dividends declared on common stock | (42,421) | (42,421) | |||
Net income (loss) | (5,859) | (5,859) | |||
Ending balance at Mar. 31, 2023 | $ 752,936 | 88 | 822,172 | (103,739) | 34,415 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividends declared on common stock (in dollars per share) | $ 0.50 | ||||
Beginning balance at Dec. 31, 2022 | $ 800,485 | 86 | 821,443 | (103,739) | 82,695 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 19,911 | ||||
Ending balance at Jun. 30, 2023 | 760,575 | 88 | 823,330 | (113,768) | 50,925 |
Beginning balance at Mar. 31, 2023 | 752,936 | 88 | 822,172 | (103,739) | 34,415 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares withheld for payment of taxes on equity awards and other | (2,612) | (2,612) | |||
Stock based compensation | 3,770 | 3,770 | |||
Purchases of treasury stock | (10,029) | (10,029) | |||
Dividends declared on common stock | (9,260) | (9,260) | |||
Net income (loss) | 25,770 | 25,770 | |||
Ending balance at Jun. 30, 2023 | $ 760,575 | $ 88 | $ 823,330 | $ (113,768) | $ 50,925 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividends declared on common stock (in dollars per share) | $ 0.12 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared on common stock (in dollars per share) | $ 0.12 | $ 0.50 | $ 0.19 | $ 0.06 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 19,911 | $ (13,456) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 79,876 | 77,832 |
Amortization of debt issuance costs | 1,288 | 971 |
Stock-based compensation expense | 8,318 | 8,222 |
Deferred income taxes | 7,033 | (509) |
Other operating expenses (income) | 793 | (187) |
Derivative activities: | ||
Total (gains) losses | (45,956) | 184,123 |
Cash settlements on derivatives | 34,943 | (69,780) |
Changes in assets and liabilities: | ||
Decrease (increase) in accounts receivable | 17,179 | (30,990) |
Decrease in other assets | 244 | 3,526 |
(Decrease) increase in accounts payable and accrued expenses | (56,722) | 1,728 |
Decrease in other liabilities | (2,588) | (1,708) |
Net cash provided by operating activities | 64,319 | 159,772 |
Capital expenditures: | ||
Capital expenditures | (42,528) | (61,706) |
Changes in capital expenditures accruals | (8,564) | 5,363 |
Acquisitions, net of cash received | (7,329) | (19,080) |
Net cash used in investing activities | (58,421) | (75,423) |
Cash flows from financing activities: | ||
Dividends paid on common stock | (51,681) | (20,275) |
Purchase of treasury stock | (10,029) | (22,760) |
Shares withheld for payment of taxes on equity awards and other | (6,872) | (4,102) |
Net cash used in financing activities | (43,582) | (47,137) |
Net (decrease) increase in cash and cash equivalents | (37,684) | 37,212 |
Cash and cash equivalents: | ||
Beginning | 46,250 | 15,283 |
Ending | 8,566 | 52,495 |
2021 RBL Facility | ||
Cash flows from financing activities: | ||
Borrowings under credit facilities | 200,000 | 192,000 |
Repayments under credit facilities | $ (175,000) | $ (192,000) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
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 each of its three Delaware limited liability company subsidiaries: (1) Berry Petroleum Company, LLC (“Berry LLC”), (2) CJ Berry Well Services Management, LLC (“C&J Management”) and (3) C&J Well Services, LLC (“C&J”). As the context may require, the “Company”, “we”, “our” or similar words refer to Berry Corp. and its subsidiaries, Berry LLC, C&J Management and C&J. Nature of Business We are a western United States independent upstream energy company with a focus on onshore, low geologic risk, long-lived conventional reserves in the San Joaquin basin of California (100% oil) and the Uinta basin of Utah (oil and gas), with well servicing and abandonment capabilities in California. We operate in two business segments: (i) exploration and production (“E&P”) and (ii) well servicing and abandonment. 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. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes our outstanding debt: June 30, December 31, Interest Rate Maturity Security (in thousands) 2021 RBL Facility $ 25,000 $ — variable rates 10.25% (2023) and 9.50% (2022) August 26, 2025 Mortgage on 90% of Present Value of proven oil and gas reserves and lien on certain other assets 2022 ABL Facility — — variable rates 9.5% (2023) and 8.3% (2022) June 5, 2025 CJWS property and certain other assets 2026 Notes 400,000 400,000 7.0% February 15, 2026 Unsecured Long-Term Debt - Principal Amount 425,000 400,000 Less: Debt Issuance Costs (3,653) (4,265) Long-Term Debt, net $ 421,347 $ 395,735 Deferred Financing Costs We incurred legal and bank fees related to the issuance of debt. At June 30, 2023 and December 31, 2022, debt issuance costs reported in “other noncurrent assets” on the balance sheet were approximately (i) $3 million and $4 million, respectively, net of amortization, for the Credit Agreement, dated as of August 26, 2021, among Berry Corp, as a guarantor, Berry LLC, as the borrower, JPMorgan Chase Bank, N.A., as the administrative agent and the other parties thereto (as amended, restated, modified or otherwise supplemented from time to time, the “2021 RBL Facility”) and (ii) an immaterial amount, net of amortization, for the Revolving Loan and Security Agreement, dated as of August 9, 2022, among C&J and C&J Management, as borrowers, and Tri Counties Bank, as lender (as amended, restated, supplemented or otherwise modified from time to time, the “2022 ABL Facility”). At June 30, 2023 and December 31, 2022, 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 was approximately $4 million. For each of the three month periods ended June 30, 2023 and 2022, the amortization expense for the 2021 RBL Facility, the 2022 ABL Facility and the 2026 Notes, combined, was approximately $1 million. For each of the six month periods ended June 30, 2023 and 2022, the amortization expense for the 2021 RBL Facility, the 2022 ABL Facility and the 2026 Notes, combined, was approximately $1 million. The amortization of debt issuance costs is presented in “interest expense” on the condensed consolidated statements of operations. Fair Value Our debt is recorded at the carrying amount on the balance sheets. The carrying amounts of the 2021 RBL Facility and the 2022 ABL Facility approximate fair value because the interest rates are variable and reflect market rates. The 2021 RBL Facility and 2022 ABL Facility are Level 2 in the fair value hierarchy. The fair value of the 2026 Notes was approximately $372 million and $369 million at June 30, 2023 and December 31, 2022, respectively. The 2026 Notes are Level 1 in the fair value hierarchy. 2021 RBL Facility The borrowing base under the 2021 RBL Facility is redetermined semi-annually, and the borrowing base redeterminations generally become effective each May and November, although the borrower and the lenders may each make one interim redetermination between scheduled redeterminations. On May 10, 2023, Berry Corp, as a guarantor, and Berry LLC, as borrower, entered into the Fourth Amendment to Credit Agreement (the “Amendment”) pursuant to which, among other things, the requisite lenders under the 2021 RBL Facility (i) maintain the aggregate elected commitment amounts at $200 million, (ii) decrease the borrowing base from $250 million to $200 million, which constitutes a redetermination of the borrowing base that was scheduled to occur on or about May 1, 2023 pursuant to the terms of the Credit Facility, (iii) decrease the maximum consolidated leverage ratio by 0.25x to 2.75x for fiscal quarters ending June 30, 2023 and thereafter and (iv) amend the minimum hedging covenant to specify the floor price set forth in the Amendment but without any modification to the minimum volumes required to be hedged. As of June 30, 2023, the 2021 RBL Facility had a $500 million revolving commitment and the aforementioned $200 million borrowing base and aggregate elected commitment and a $20 million sublimit for the issuance of letters of credit (with borrowing availability being reduced by the face amount of any letters of credit issued under the subfacility). Availability under the 2021 RBL Facility may not exceed the lesser of the aggregate elected commitments or the borrowing base less outstanding advances and letters of credit. The 2021 RBL Facility matures on August 26, 2025, unless terminated earlier in accordance with the 2021 RBL Facility terms. The 2021 RBL Facility is available to us for general corporate purposes, including working capital. The outstanding borrowings under the 2021 RBL Facility bear interest at a rate equal to, at our option, either (a) a customary base rate plus an applicable margin ranging from 2.0% to 3.0% or (b) a term SOFR reference rate, plus an applicable margin ranging from 3.0% to 4.0%, in each case determined based on the utilization level under the 2021 RBL Facility. Interest rate on base borrowings is payable quarterly in arrears and is computed on the basis of a year of 365/366 days, and interest on term SOFR borrowings accrues in respect of interest periods of one three The 2021 RBL Facility requires us to maintain on a consolidated basis as of each quarter-end (i) a leverage ratio of not more than 2.75 to 1.0 and (ii) a current ratio of not less than 1.0 to 1.0. As of June 30, 2023, we were in compliance with all of the debt covenants. The 2021 RBL Facility also contains other customary affirmative and negative covenants, as well as events of default and remedies. If we do not comply with the financial and other covenants in the 2021 RBL Facility, the lenders may, subject to customary cure rights, require immediate payment of all amounts outstanding under the 2021 RBL Facility and terminate the commitments thereunder. As of June 30, 2023, we had $25 million borrowings outstanding, $10 million in letters of credit outstanding and approximately $165 million of available borrowing capacity under the 2021 RBL Facility. 2022 ABL Facility Subject to satisfaction of customary conditions precedent to borrowing, as of June 30, 2023, C&J and C&J Management could borrow up to the lesser of (x) $15 million and (y) the borrowing base under the 2022 ABL Facility, with a letter of credit subfacility for the issuance of letters of credit in an aggregate amount not to exceed $7.5 million (with borrowing availability being reduced by the face amount of any letters of credit issued under the subfacility). The “borrowing base” is an amount equal to 80% of the balance due on eligible accounts receivable, subject to reserves that the lender may implement in its reasonable discretion. As of June 30, 2023, the borrowing base was $14 million, an amount equal to 80% of the balance due on eligible accounts receivable. Interest on the outstanding principal amount of the revolving loans under the 2022 ABL Facility accrues at a per annum rate equal to 1.25% in excess of The Wall Street Journal Prime Rate. The “Wall Street Journal Prime Rate” is the variable rate of interest, on a per annum basis, which is announced and/or published in the “Money Rates” section of The Wall Street Journal from time to time as its “Prime Rate”. The rate will be redetermined whenever The Wall Street Journal Prime Rate changes. Interest is due quarterly, in arrears. The 2022 ABL Facility matures on June 5, 2025, unless terminated in accordance with the 2022 ABL Facility terms. The 2022 ABL Facility requires C&J Well Services (“CJWS”) to comply with the following financial covenants (i) maintain on a consolidated basis a ratio of total liabilities to tangible net worth of no greater than 1.5 to 1.0 at any time; (ii) reduce the amount of revolving advances outstanding under the 2022 ABL Facility to not more than 90% of the lesser of (a) the maximum revolving advance amount, or (b) the borrowing base, as of the lender’s close of business on the last day of each fiscal quarter; and (iii) maintain net income before taxes of not less than $1.00 as of each fiscal year end. As of June 30, 2023, CJWS was in compliance with all of the debt covenants. The 2022 ABL Facility also contains other customary affirmative and negative covenants, as well as events of default and remedies. If CJWS does not comply with the financial and other covenants in the 2022 ABL Facility, the lender may, subject to customary cure rights, require immediate payment of all amounts outstanding under the 2022 ABL Facility and terminate the commitment thereunder. CJWS’s obligations under the 2022 ABL Facility are not guaranteed by Berry Corp. or Berry LLC and Berry Corp. and Berry LLC do not and are not required to provide any credit support for such obligations. In March 2023, we entered into the Amendment to Revolving Loan and Security Agreement (the “First Amendment”). The First Amendment, in addition to other changes described therein, amended the 2022 ABL Facility to substitute certain collateral. As of June 30, 2023, CJWS had no borrowings and $2 million letters of credit outstanding with $12 million of available borrowing capacity under the 2022 ABL Facility. Senior Unsecured Notes In February 2018, Berry LLC completed a private issuance of $400 million in aggregate principal amount of 7.0% senior unsecured notes due February 2026, which resulted in net proceeds to us of approximately $391 million after deducting expenses and the initial purchasers’ discount. The 2026 Notes are Berry LLC’s senior unsecured obligations and rank equally in right of payment with all of our other senior indebtedness and senior to any of our subordinated indebtedness. The 2026 Notes are fully and unconditionally guaranteed on a senior unsecured basis by Berry Corp. The indenture governing the 2026 Notes contains customary covenants and events of default (in some cases, subject to grace periods). We were in compliance with all covenants under the 2026 Notes as of June 30, 2023. Debt Repurchase Program In February 2020, the board of directors (the “Board of Directors” or the “Board”) 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 do not obligate Berry Corp. to purchase the 2026 Notes during any period or at all. We have not yet repurchased any notes under this program. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives We utilize derivatives, such as swaps, puts, calls and collars, 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. In addition to satisfying the oil hedging requirements of the 2021 RBL Facility, 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 fixed dividends as applicable, with the oil and gas sales hedges for a period of up to three 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 three years. We have also entered into Utah gas transportation contracts to help reduce the price fluctuation exposure, however these do not qualify as hedges. 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. We had no such transactions in the periods presented. 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 bbl and per mmbtu, respectively, and receive settlement payments for prices below the indicated weighted-average price per bbl and per mmbtu, respectively. For our purchased puts, we would receive settlement payments for prices below the indicated weighted-average price per barrel, net of any deferred premium. No payment would be made or received for prices above the indicated weighted-average price per barrel, other than any applicable deferred premium. For our sold puts, we would make settlement payments for prices below the indicated weighted-average price per barrel, net of any deferred premium. No payment would be made or received for prices above the indicated weighted-average price per barrel, other than any applicable deferred premium. For our sold call options, we would make settlement payments for prices above the indicated weighted-average price per barrel, net of any deferred premium. No payment would be made or received for prices above the indicated weighted-average price per barrel, other than any applicable deferred premium. A consumer collar is used for the purchase of fuel gas and is the combination of buying a call option and selling a put option. We would receive settlement payments for prices above the indicated weighted-average price of the call option and we would make settlement payments for prices below the indicated weighted-average price of the put option. No payment would be made or received for prices above the indicated weighted-average price, other than any applicable deferred premium. For natural gas basis swaps, we make settlement payments if the difference between NWPL and Henry Hub is below the indicated weighted-average price of our contracts and receive settlement payments if the difference between NWPL and Henry Hub is above the indicated weighted-average price. For some of our options we paid or received a premium at the time the positions were created and for others, the premium payment or receipt is deferred until the time of settlement. As of June 30, 2023, we have net payable deferred premiums of approximately $3 million, which is reflected in the mark-to-market valuation and will be payable through December 31, 2024. We use oil and gas production hedges to protect our sales against decreases in oil and gas prices. We also use natural gas purchase hedges to protect our natural gas purchases against increases in prices. We do not enter into derivative contracts for speculative trading purposes and have not accounted for our derivatives as cash-flow or fair-value hedges. The changes in fair value of these instruments are recorded in current earnings. Gains (losses) on oil and gas sales hedges are classified in the revenues and other section of the statement of operations, while natural gas purchase hedges are included in expenses and other section of the statement of operations. As of June 30, 2023, we had the following crude oil production and gas purchases hedges. Q3 2023 Q4 2023 FY 2024 FY 2025 FY 2026 Brent - Crude Oil production Swaps Hedged volume (bbls) 1,211,717 1,196,000 3,412,817 752,125 487,268 Weighted-average price ($/bbl) $ 76.26 $ 76.18 $ 76.07 $ 70.89 $ 68.71 Sold Calls Hedged volume (bbls) 368,000 368,000 1,098,000 2,486,127 472,500 Weighted-average price ($/bbl) $ 106.00 $ 106.00 $ 105.00 $ 91.11 $ 82.21 Purchased Puts (net) (1) Hedged volume (bbls) 552,000 552,000 1,281,000 2,486,127 472,500 Weighted-average price ($/bbl) $ 50.00 $ 50.00 $ 50.00 $ 58.53 $ 60.00 Sold Puts (net) (1) Hedged volume (bbls) 184,000 154,116 183,000 — — Weighted-average price ($/bbl) $ 40.00 $ 40.00 $ 40.00 $ — $ — Henry Hub - Natural Gas purchases NWPL - Natural Gas purchases Swaps Hedged volume (mmbtu) 3,680,000 3,680,000 10,980,000 6,080,000 — Weighted-average price ($/mmbtu) $ 5.34 $ 5.34 $ 4.21 $ 4.27 $ — Gas Basis Differentials NWPL/HH - basis swaps Hedged volume (mmbtu) — 610,000 — — — Weighted-average price ($/mmbtu) $ — $ 1.12 $ — $ — $ — __________ (1) Purchased puts and sold puts with the same strike price have been presented on a net basis. In addition to the table above, in July 2023, we added the following sold oil swaps (Brent): 1,000 bbl/d at $82.10 bbl/d beginning August 2023 through December 2023, 1,000 bbl/d at $75.75 beginning January 2024 through December 2024, and 2,000 bbl/d at $77.03 beginning July 2024 through December 2024. In July 2023, we also added purchased calls of 1,000 bbl/d at $105.00 beginning January 2024 through December 2024, which are in addition to the table above. 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, 2023 and December 31, 2022: June 30, 2023 Balance Sheet Gross Amounts Gross Amounts Offset Net Fair Value Presented (in thousands) Assets: Commodity Contracts Current assets $ 29,909 $ (21,191) $ 8,718 Commodity Contracts Non-current assets 34,088 (28,656) 5,432 Liabilities: Commodity Contracts Current liabilities (31,573) 21,191 (10,382) Commodity Contracts Non-current liabilities (29,730) 28,656 (1,074) Total derivatives $ 2,694 $ — $ 2,694 December 31, 2022 Balance Sheet Gross Amounts Gross Amounts Offset Net Fair Value Presented (in thousands) Assets: Commodity Contracts Current assets $ 66,974 $ (30,607) $ 36,367 Commodity Contracts Non-current assets 39,886 (39,810) 76 Liabilities: Commodity Contracts Current liabilities (61,713) 30,607 (31,106) Commodity Contracts Non-current liabilities (53,452) 39,810 (13,642) Total derivatives $ (8,305) $ — $ (8,305) 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 2021 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 A2 credit rating or better from Standard & 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, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lawsuits, Claims, Commitments and Contingencies | Lawsuits, Claims, Commitments and Contingencies In the normal course of business, we, or our subsidiaries, 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 any reserve balances at June 30, 2023 and December 31, 2022. 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 subsidiaries, 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, 2023, we are not aware of material indemnity claims pending or threatened against us. Securities Litigation Matters On November 20, 2020, Luis Torres, individually and on behalf of a putative class, filed a securities class action lawsuit (the “Securities Class Action”) 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 (collectively, the “Defendants”). The complaint asserts violations of Sections 11 and 15 of the Securities Act of 1933 (as amended, the “Securities Act”), and Sections 10(b) and 20(a) of the Exchange Act of 1934 (as amended, the “Exchange Act”), on behalf of a putative class of all persons who purchased or otherwise acquired (i) common stock pursuant and/or traceable to the Company’s 2018 IPO; or (ii) Berry Corp.’s securities between July 26, 2018 and November 3, 2020 (the “Class Period”). In particular, 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 on November 3, 2020. On November 1, 2021, the court-appointed co-lead plaintiffs filed an amended complaint asserting claims on behalf of the same putative class under Sections 11 and 15 of the Securities Act and Sections 10(b) and 20(a) of the Exchange Act, alleging, among other things, that the Company and the individual Defendants made false and misleading statements between July 26, 2018 and November 3, 2020 regarding the Company’s permits and permitting processes. The amended 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. The Defendants filed a motion to dismiss on January 24, 2022 and on September 13, 2022, the court issued an order denying that motion, and the case moved into discovery. On February 13, 2023, the plaintiffs filed a motion for class certification, and on April 14, 2023, the defendants filed their opposition; the plaintiffs filed their reply on May 26, 2023, and a hearing on the motion for class certification was set for August 23, 2023. On July 31, 2023, the parties executed a Memorandum of Understanding memorializing an agreement-in-principle to settle all claims in the Securities Class Action for an aggregate sum of $2.5 million. In the coming weeks, the parties intend to notify the court of the agreement-in-principal and negotiate formal settlement documentation. Thereafter, the parties will move forward with the notice and approval process for the proposed settlement. The process is expected to include, among other things, preliminary and final approval hearings, an opt-out process, and opportunities for class members to object to the settlement. The Defendants continue to maintain that the claims are without merit and admit no liability in connection with the settlement. On October 20, 2022, a shareholder derivative lawsuit (the “Assad Lawsuit”) was filed in the United States District Court for the Northern District of Texas by putative stockholder George Assad, allegedly on behalf of the Company, that piggy-backs on the Securities Class Action and which is currently pending before the same court. The derivative complaint names certain current and former officers and directors as defendants, and generally alleges that they breached their fiduciary duties by causing or failing to prevent the securities violations alleged in the securities class action. The derivative complaint also alleges claims for unjust enrichment as against all defendants, and claims for contribution and indemnification under Sections 10(b) and 21D of the Exchange Act. On January 27, 2023, the court granted the parties’ joint stipulated request to stay the Assad Lawsuit pending resolution of the Securities Class Action. On January 20, 2023, a second shareholder derivative lawsuit (the “Karp Lawsuit,” together with the Assad Lawsuit, the “Shareholder Derivative Actions”) was filed, this time in the United States District Court for the District of Delaware, by putative stockholder Molly Karp, allegedly on behalf of the Company, again piggy-backing on the Securities Class Action. This complaint, similar to the Assad Lawsuit, is brought against certain current and former officers and directors of the Company, asserting breach of fiduciary duty, aiding and abetting, and contribution claims based on the defendants allegedly having caused or failed to prevent the securities violations alleged in the securities class action. In addition, the complaint asserts a claim under Section 14(a) of the Exchange Act, alleging that Berry’s 2022 proxy statement was false and misleading in that it suggested the Company’s internal controls were sufficient and the Board of Directors was adequately overseeing material risks facing the Company when, according to the derivative plaintiff, that was not the case. On February 13, 2023, the court granted the parties’ joint stipulated request to stay the Karp Lawsuit pending resolution of a motion for summary judgment by the defendants in the Securities Class Action. The proposed settlement of the Securities Class Action does not relate to the Shareholder Derivative Actions. The defendants continue to believe the claims in the Shareholder Derivative Actions are without merit and intend to defend vigorously against them, but there can be no assurances as to the outcome. At this time, we are unable to estimate the probability or the amount of liability, if any, related to these matters. In addition, on or around April 17, 2023, the Company received a stockholder litigation demand that the Board of Directors investigate and commence legal proceedings against certain current and former officers and directors based ostensibly on the same claims asserted in the Shareholder Derivative Actions. The Board of Directors appointed a Demand Review Committee for the purpose of reviewing the demand. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Equity | Equity Cash Dividends In February 2023, the Board of Directors declared regular fixed cash dividends of $0.06 per share, as well as variable cash dividends of $0.44 per share which was based on the results of the fourth quarter of 2022, for a total of $0.50 per share, which we paid in March 2023. In April 2023, the Board of Directors declared a $0.12 per share regular fixed cash dividend based on the results of the first quarter of 2023, which was paid in May 2023. In July 2023, the Board of Directors approved a $0.12 per share regular fixed cash dividend, as well as a variable dividend of $0.02 based on the results for the six months ended June 30, 2023, each of which is expected to be paid in August 2023. The Company anticipates that it will continue to pay quarterly cash dividends in the future. However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Company’s future earnings, financial condition, capital requirements, and other factors. Stock Repurchase Program The Company repurchased 1.4 million shares during the three months ended June 30, 2023 for approximately $10 million, an average of $7.04 per share. As of June 30, 2023, the Company had repurchased a total of 11,949,247 shares under the stock repurchase program for approximately $114 million in aggregate. As previously disclosed, the Company implemented a shareholder return model in early 2022, for which the Company intends to allocate a portion of Adjusted Free Cash Flow to opportunistic share repurchases. In February 2023, the Board of Directors approved an increase of $102 million to the Company’s stock repurchase authorization bringing the Company’s remaining share authority to $200 million. As of June 30, 2023, the Company’s remaining total share repurchase authority is $190 million. The Board’s authorization permits the Company to make purchases of its common stock from time to time in the open market and in privately negotiated transactions, subject to market conditions and other factors, up to the aggregate amount authorized by the Board. The Board’s authorization has no expiration date. 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. Purchases may be commenced or suspended at any time without notice and does not obligate the company to purchase shares during any period or at all. Any shares repurchased are reflected as treasury stock and any shares acquired will be available for general corporate purposes. Stock-Based Compensation In February 2023, the Company granted awards of approximately 1,031,000 shares of restricted stock units (“RSUs”), which will vest annually in equal amounts over three years and a target number of approximately 437,000 shares of 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 2023 are solely time-based awards. Of the PSUs awarded to certain Berry employees (excluding CJWS employee awards) in February 2023, (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 (b) 50% of such awards will vest, if at all, based on the consolidated Company’s average cash returned on invested capital (“CROIC PSUs”) over the performance period. The PSUs awarded to certain CJWS employees in February 2023 will vest, if at all, based on the CJWS average cash returned on invested capital (“ROIC 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 200% of the target TSR, CROIC and ROIC PSUs granted. The fair value of the RSUs, CROIC PSUs and ROIC 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 three-year performance measurement period. |
Supplemental Disclosures to the
Supplemental Disclosures to the Financial Statements | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 (in thousands) Prepaid expenses $ 7,081 $ 12,330 Materials and supplies 13,295 8,976 Deposits 7,323 7,266 Oil inventories 3,884 4,036 Other 1,008 1,117 Total other current assets $ 32,591 $ 33,725 Other non-current assets at June 30, 2023 included approximately $7 million of operating lease right-of-use assets, net of amortization and $3 million of deferred financing costs, net of amortization. At December 31, 2022, other non-current assets included approximately $6 million of operating lease right-of-use assets, net of amortization and $4 million of deferred financing costs, net of amortization. Accounts payable and accrued expenses on the condensed consolidated balance sheets included the following: June 30, 2023 December 31, 2022 (in thousands) Accounts payable-trade $ 31,146 $ 40,286 Accrued expenses 46,327 85,360 Royalties payable 20,218 38,264 Taxes other than income tax liability 6,788 6,640 Accrued interest 11,565 10,885 Asset retirement obligations - current portion 20,000 20,000 Operating lease liability 1,701 1,666 Total accounts payable and accrued expenses $ 137,745 $ 203,101 The decrease of $5 million in the long-term portion of the asset retirement obligations from $158 million at December 31, 2022 to $154 million at June 30, 2023 was due to $10 million of liabilities settled during the period, partially offset by $6 million of accretion. Other noncurrent liabilities at June 30, 2023 included approximately $31 million of greenhouse gas liability, which is due in the fourth quarter of 2024, and $6 million of operating lease noncurrent liability. At December 31, 2022, other non-current liabilities included approximately $23 million non-current greenhouse gas liability, which is due in the fourth quarter of 2024, and $5 million of non-current operating lease liability. Supplemental Information on the Statement of Operations For the three months ended June 30, 2023, other operating income was $1 million, mainly due to a 2017 property tax refund. For the three months ended June 30, 2022, other operating expenses were less than $1 million. For the six months ended June 30, 2023, other operating income was $1 million, mainly due to a 2017 property tax refund. For the six months ended June 30, 2022, other operating expenses were $4 million and mainly consisted of over $2 million in royalty audit charges incurred prior to our emergence and restructuring in 2017, and approximately $1 million loss on the divestiture of the Piceance properties. Supplemental Cash Flow Information Supplemental disclosures to the condensed consolidated statements of cash flows are presented below: Six Months Ended 2023 2022 (in thousands) Supplemental Disclosures of Significant Non-Cash Investing Activities: Material inventory transfers to oil and natural gas properties $ 552 $ 1,011 Supplemental Disclosures of Cash Payments (Receipts): Interest, net of amounts capitalized $ 15,392 $ 14,988 Income taxes payments $ 670 $ 2,484 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
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 months ended June 30, 2023 and June 30, 2022, 2,564,000 and 3,419,000 incremental RSU and PSU shares were included in the diluted EPS calculation, respectively. For the six months ended June 30, 2023, 3,156,000 incremental RSU and PSU shares were included in the diluted EPS calculation. For the six months ended June 30, 2022, no incremental RSU or PSU shares were included in the diluted EPS calculation as their effect was anti-dilutive under the “if converted” method. Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands except per share amounts) Basic EPS calculation Net income (loss) $ 25,770 $ 43,354 $ 19,911 $ (13,456) Weighted-average shares of common stock outstanding 76,721 79,596 76,419 79,945 Basic income (loss) per share $ 0.34 $ 0.54 $ 0.26 $ (0.17) Diluted EPS calculation Net income (loss) $ 25,770 $ 43,354 $ 19,911 $ (13,456) Weighted-average shares of common stock outstanding 76,721 79,596 76,419 79,945 Dilutive effect of potentially dilutive securities (1) 2,564 3,419 3,156 — Weighted-average common shares outstanding - diluted 79,285 83,015 79,575 79,945 Diluted income (loss) per share $ 0.33 $ 0.52 $ 0.25 $ (0.17) __________ (1) We excluded approximately 3.5 million of combined RSUs and PSUs from the dilutive weighted-average common shares outstanding for the six months ended June 30, 2022 because their effect was anti-dilutive. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We derive revenue from sales of oil, natural gas and natural gas liquids (“NGL”), with additional revenue generated from sales of electricity and marketing activities. Revenue from CJWS is generated from well servicing and abandonment business. The following table provides disaggregated revenue for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Oil sales $ 154,513 $ 230,617 $ 306,647 $ 433,341 Natural gas sales 2,410 7,349 15,953 13,331 Natural gas liquids sales 780 2,105 1,460 3,750 Service revenue 47,674 46,178 92,297 86,014 Electricity sales 3,078 7,419 8,523 12,838 Marketing revenues — — — 289 Other revenues 36 120 81 165 Revenues from contracts with customers 208,491 293,788 424,961 549,728 Gains (losses) on oil and gas sales derivatives 20,871 (40,658) 59,370 (202,516) Total revenues and other $ 229,362 $ 253,130 $ 484,331 $ 347,212 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate in two business segments: (i) E&P and (ii) well servicing and abandonment. The E&P segment is engaged in the exploration and production of onshore, low geologic risk, long-lived conventional oil reserves primarily located in California, as well as Utah. The well servicing and abandonment segment is operated by CJWS and provides wellsite services in California to oil and natural gas production companies, with a focus on well servicing, well abandonment services and water logistics. The well servicing and abandonment segment occasionally provides services to our E&P segment, as such, we recorded an intercompany elimination of $2 million and $3 million in revenue and expense during consolidation for the three and six months ended June 30, 2023, respectively. The intercompany elimination was immaterial for the three and six months ended June 30, 2022. The following table represents selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis. Three Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Revenues (1) $ 160,817 $ 49,299 $ (1,625) $ 208,491 Net income (loss) before income taxes $ 62,012 $ 4,836 $ (30,462) $ 36,386 Adjusted EBITDA $ 78,274 $ 7,689 $ (16,908) $ 69,055 Capital expenditures $ 19,625 $ 1,334 $ 936 $ 21,895 Total assets $ 1,457,694 $ 72,653 $ (8,644) $ 1,521,703 Three Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Revenues (1) $ 247,610 $ 46,178 $ — $ 293,788 Net income (loss) before income taxes $ 68,885 $ 3,307 $ (26,693) $ 45,499 Adjusted EBITDA $ 116,942 $ 6,200 $ (13,395) $ 109,747 Capital expenditures $ 32,134 $ 1,066 $ 886 $ 34,086 Total assets $ 1,456,164 $ 71,543 $ 2,678 $ 1,530,385 __________ (1) These revenues do not include hedge settlements. Six Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Revenues (1) $ 332,664 $ 95,662 $ (3,365) $ 424,961 Net income (loss) before income taxes $ 86,182 $ 6,950 $ (65,518) $ 27,614 Adjusted EBITDA $ 154,071 $ 13,127 $ (38,806) $ 128,392 Capital expenditures $ 38,897 $ 2,316 $ 1,315 $ 42,528 Total assets $ 1,457,694 $ 72,653 $ (8,644) $ 1,521,703 Six Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Revenues (1) $ 463,714 $ 86,014 $ — $ 549,728 Net income (loss) before income taxes $ 34,594 $ 3,023 $ (52,279) $ (14,662) Adjusted EBITDA $ 222,591 $ 9,500 $ (26,632) $ 205,459 Capital expenditures $ 58,571 $ 1,694 $ 1,441 $ 61,706 Total assets $ 1,456,164 $ 71,543 $ 2,678 $ 1,530,385 __________ (1) These revenues do not include hedge settlements. Adjusted EBITDA is the measure reported to the chief operating decision maker (CODM) for purposes of making decisions about allocating resources to and assessing performance of each segment. Adjusted EBITDA is calculated as earnings before interest expense; income taxes; depreciation, depletion, and amortization; derivative gains or losses net of cash received or paid for scheduled derivative settlements; impairments; stock compensation expense; and unusual and infrequent items. Three Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Adjusted EBITDA reconciliation to net income (loss): Net income (loss) $ 62,012 $ 4,836 $ (41,078) $ 25,770 Add (Subtract): Interest (income) expense — (28) 8,822 8,794 Income tax expense — — 10,616 10,616 Depreciation, depletion, and amortization 35,649 3,307 799 39,755 Gains on derivatives (6,847) — — (6,847) Net cash paid for scheduled derivative settlements (12,524) — — (12,524) Other operating (income) expenses (1,093) (610) 670 (1,033) Stock compensation expense 105 184 3,263 3,552 Acquisition costs (1) 972 — — 972 Adjusted EBITDA $ 78,274 $ 7,689 $ (16,908) $ 69,055 __________ (1) Includes costs related to the acquisition of Macpherson Energy (as defined below). Three Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Adjusted EBITDA reconciliation to net income (loss): Net income (loss) $ 68,885 $ 3,307 $ (28,838) $ 43,354 Add (Subtract): Interest expense — — 7,729 7,729 Income tax expense — — 2,145 2,145 Depreciation, depletion, and amortization 33,956 3,017 1,082 38,055 Losses on derivatives 51,319 — — 51,319 Net cash paid for scheduled derivative settlements (37,628) — — (37,628) Other operating expenses (income) 30 (210) 533 353 Stock compensation expense 380 86 3,954 4,420 Adjusted EBITDA $ 116,942 $ 6,200 $ (13,395) $ 109,747 Six Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Adjusted EBITDA reconciliation to net income (loss): Net income (loss) $ 86,182 $ 6,950 $ (73,221) $ 19,911 Add (Subtract): Interest (income) expense — (23) 16,654 16,631 Income tax expense — — 7,703 7,703 Depreciation, depletion, and amortization 69,484 6,563 3,829 79,876 Gains on derivatives (45,956) — — (45,956) Net cash received for scheduled derivative settlements 34,943 — — 34,943 Other operating expenses (income) 716 (692) (1,343) (1,319) Stock compensation expense 417 329 7,572 8,318 Acquisition costs (1) 972 — — 972 Non-recurring costs (2) 7,313 — — 7,313 Adjusted EBITDA $ 154,071 $ 13,127 $ (38,806) $ 128,392 __________ (1) Includes costs related to the acquisition of Macpherson Energy (as defined below). (2) Non-recurring costs included executive transition costs and workforce reduction costs in the first quarter of 2023. Six Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Adjusted EBITDA reconciliation to net income (loss): Net income (loss) $ 34,594 $ 3,023 $ (51,073) $ (13,456) Add (Subtract): Interest expense — — 15,404 15,404 Income tax benefit — — (1,206) (1,206) Depreciation, depletion, and amortization 69,430 6,196 2,206 77,832 Losses on derivatives 184,123 — — 184,123 Net cash paid for scheduled derivative settlements (69,780) — — (69,780) Other operating expenses (income) 3,525 (36) 633 4,122 Stock compensation expense 699 119 7,404 8,222 Non-recurring costs (1) — 198 — 198 Adjusted EBITDA $ 222,591 $ 9,500 $ (26,632) $ 205,459 __________ (1) Non-recurring costs included legal and professional service expenses related to acquisition and divestiture activity in the first quarter of 2022. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In July 2023, the Company announced that it executed an agreement to acquire Macpherson Energy Corporation, a privately held Kern County, California operator (“Macpherson Energy”), for approximately $70 million, subject to certain purchase price adjustments (the “Macpherson Acquisition”). The transaction is structured such that $50 million will be paid at closing, which is expected during the third quarter of 2023, and the remaining $20 million to be paid in July 2024 (in each case, subject to such purchase price adjustments). Consistent with our shareholder return model, Berry views this acquisition, in part, as a means of maintaining base production and intends to reallocate $35 million of planned 2023 capital expenditures to the purchase price, and this amount will be deducted from maintenance capital in Adjusted Free Cash Flow for 2023. The remainder of the purchase price will be allocated from Adjusted Free Cash Flow consistent with the shareholder return model allocation. A portion of the closing price is expected to be initially funded by drawing down the 2021 RBL Credit Facility. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net income (loss) | $ 25,770 | $ (5,859) | $ 43,354 | $ (56,810) | $ 19,911 | $ (13,456) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
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. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes our outstanding debt: June 30, December 31, Interest Rate Maturity Security (in thousands) 2021 RBL Facility $ 25,000 $ — variable rates 10.25% (2023) and 9.50% (2022) August 26, 2025 Mortgage on 90% of Present Value of proven oil and gas reserves and lien on certain other assets 2022 ABL Facility — — variable rates 9.5% (2023) and 8.3% (2022) June 5, 2025 CJWS property and certain other assets 2026 Notes 400,000 400,000 7.0% February 15, 2026 Unsecured Long-Term Debt - Principal Amount 425,000 400,000 Less: Debt Issuance Costs (3,653) (4,265) Long-Term Debt, net $ 421,347 $ 395,735 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Transactions Resulting in Crude Oil Production and Gas Purchases Hedges | As of June 30, 2023, we had the following crude oil production and gas purchases hedges. Q3 2023 Q4 2023 FY 2024 FY 2025 FY 2026 Brent - Crude Oil production Swaps Hedged volume (bbls) 1,211,717 1,196,000 3,412,817 752,125 487,268 Weighted-average price ($/bbl) $ 76.26 $ 76.18 $ 76.07 $ 70.89 $ 68.71 Sold Calls Hedged volume (bbls) 368,000 368,000 1,098,000 2,486,127 472,500 Weighted-average price ($/bbl) $ 106.00 $ 106.00 $ 105.00 $ 91.11 $ 82.21 Purchased Puts (net) (1) Hedged volume (bbls) 552,000 552,000 1,281,000 2,486,127 472,500 Weighted-average price ($/bbl) $ 50.00 $ 50.00 $ 50.00 $ 58.53 $ 60.00 Sold Puts (net) (1) Hedged volume (bbls) 184,000 154,116 183,000 — — Weighted-average price ($/bbl) $ 40.00 $ 40.00 $ 40.00 $ — $ — Henry Hub - Natural Gas purchases NWPL - Natural Gas purchases Swaps Hedged volume (mmbtu) 3,680,000 3,680,000 10,980,000 6,080,000 — Weighted-average price ($/mmbtu) $ 5.34 $ 5.34 $ 4.21 $ 4.27 $ — Gas Basis Differentials NWPL/HH - basis swaps Hedged volume (mmbtu) — 610,000 — — — Weighted-average price ($/mmbtu) $ — $ 1.12 $ — $ — $ — __________ (1) Purchased puts and sold puts with the same strike price have been presented on a net basis. |
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, 2023 and December 31, 2022: June 30, 2023 Balance Sheet Gross Amounts Gross Amounts Offset Net Fair Value Presented (in thousands) Assets: Commodity Contracts Current assets $ 29,909 $ (21,191) $ 8,718 Commodity Contracts Non-current assets 34,088 (28,656) 5,432 Liabilities: Commodity Contracts Current liabilities (31,573) 21,191 (10,382) Commodity Contracts Non-current liabilities (29,730) 28,656 (1,074) Total derivatives $ 2,694 $ — $ 2,694 December 31, 2022 Balance Sheet Gross Amounts Gross Amounts Offset Net Fair Value Presented (in thousands) Assets: Commodity Contracts Current assets $ 66,974 $ (30,607) $ 36,367 Commodity Contracts Non-current assets 39,886 (39,810) 76 Liabilities: Commodity Contracts Current liabilities (61,713) 30,607 (31,106) Commodity Contracts Non-current liabilities (53,452) 39,810 (13,642) Total derivatives $ (8,305) $ — $ (8,305) |
Supplemental Disclosures to t_2
Supplemental Disclosures to the Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 (in thousands) Prepaid expenses $ 7,081 $ 12,330 Materials and supplies 13,295 8,976 Deposits 7,323 7,266 Oil inventories 3,884 4,036 Other 1,008 1,117 Total other current assets $ 32,591 $ 33,725 |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses on the condensed consolidated balance sheets included the following: June 30, 2023 December 31, 2022 (in thousands) Accounts payable-trade $ 31,146 $ 40,286 Accrued expenses 46,327 85,360 Royalties payable 20,218 38,264 Taxes other than income tax liability 6,788 6,640 Accrued interest 11,565 10,885 Asset retirement obligations - current portion 20,000 20,000 Operating lease liability 1,701 1,666 Total accounts payable and accrued expenses $ 137,745 $ 203,101 |
Supplemental Disclosures to the Statements of Cash Flows | Supplemental disclosures to the condensed consolidated statements of cash flows are presented below: Six Months Ended 2023 2022 (in thousands) Supplemental Disclosures of Significant Non-Cash Investing Activities: Material inventory transfers to oil and natural gas properties $ 552 $ 1,011 Supplemental Disclosures of Cash Payments (Receipts): Interest, net of amounts capitalized $ 15,392 $ 14,988 Income taxes payments $ 670 $ 2,484 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands except per share amounts) Basic EPS calculation Net income (loss) $ 25,770 $ 43,354 $ 19,911 $ (13,456) Weighted-average shares of common stock outstanding 76,721 79,596 76,419 79,945 Basic income (loss) per share $ 0.34 $ 0.54 $ 0.26 $ (0.17) Diluted EPS calculation Net income (loss) $ 25,770 $ 43,354 $ 19,911 $ (13,456) Weighted-average shares of common stock outstanding 76,721 79,596 76,419 79,945 Dilutive effect of potentially dilutive securities (1) 2,564 3,419 3,156 — Weighted-average common shares outstanding - diluted 79,285 83,015 79,575 79,945 Diluted income (loss) per share $ 0.33 $ 0.52 $ 0.25 $ (0.17) __________ (1) We excluded approximately 3.5 million of combined RSUs and PSUs from the dilutive weighted-average common shares outstanding for the six months ended June 30, 2022 because their effect was anti-dilutive. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides disaggregated revenue for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Oil sales $ 154,513 $ 230,617 $ 306,647 $ 433,341 Natural gas sales 2,410 7,349 15,953 13,331 Natural gas liquids sales 780 2,105 1,460 3,750 Service revenue 47,674 46,178 92,297 86,014 Electricity sales 3,078 7,419 8,523 12,838 Marketing revenues — — — 289 Other revenues 36 120 81 165 Revenues from contracts with customers 208,491 293,788 424,961 549,728 Gains (losses) on oil and gas sales derivatives 20,871 (40,658) 59,370 (202,516) Total revenues and other $ 229,362 $ 253,130 $ 484,331 $ 347,212 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table represents selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis. Three Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Revenues (1) $ 160,817 $ 49,299 $ (1,625) $ 208,491 Net income (loss) before income taxes $ 62,012 $ 4,836 $ (30,462) $ 36,386 Adjusted EBITDA $ 78,274 $ 7,689 $ (16,908) $ 69,055 Capital expenditures $ 19,625 $ 1,334 $ 936 $ 21,895 Total assets $ 1,457,694 $ 72,653 $ (8,644) $ 1,521,703 Three Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Revenues (1) $ 247,610 $ 46,178 $ — $ 293,788 Net income (loss) before income taxes $ 68,885 $ 3,307 $ (26,693) $ 45,499 Adjusted EBITDA $ 116,942 $ 6,200 $ (13,395) $ 109,747 Capital expenditures $ 32,134 $ 1,066 $ 886 $ 34,086 Total assets $ 1,456,164 $ 71,543 $ 2,678 $ 1,530,385 __________ (1) These revenues do not include hedge settlements. Six Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Revenues (1) $ 332,664 $ 95,662 $ (3,365) $ 424,961 Net income (loss) before income taxes $ 86,182 $ 6,950 $ (65,518) $ 27,614 Adjusted EBITDA $ 154,071 $ 13,127 $ (38,806) $ 128,392 Capital expenditures $ 38,897 $ 2,316 $ 1,315 $ 42,528 Total assets $ 1,457,694 $ 72,653 $ (8,644) $ 1,521,703 Six Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Revenues (1) $ 463,714 $ 86,014 $ — $ 549,728 Net income (loss) before income taxes $ 34,594 $ 3,023 $ (52,279) $ (14,662) Adjusted EBITDA $ 222,591 $ 9,500 $ (26,632) $ 205,459 Capital expenditures $ 58,571 $ 1,694 $ 1,441 $ 61,706 Total assets $ 1,456,164 $ 71,543 $ 2,678 $ 1,530,385 __________ (1) These revenues do not include hedge settlements. |
Adjusted EBITDA Reconciliation | Three Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Adjusted EBITDA reconciliation to net income (loss): Net income (loss) $ 62,012 $ 4,836 $ (41,078) $ 25,770 Add (Subtract): Interest (income) expense — (28) 8,822 8,794 Income tax expense — — 10,616 10,616 Depreciation, depletion, and amortization 35,649 3,307 799 39,755 Gains on derivatives (6,847) — — (6,847) Net cash paid for scheduled derivative settlements (12,524) — — (12,524) Other operating (income) expenses (1,093) (610) 670 (1,033) Stock compensation expense 105 184 3,263 3,552 Acquisition costs (1) 972 — — 972 Adjusted EBITDA $ 78,274 $ 7,689 $ (16,908) $ 69,055 __________ (1) Includes costs related to the acquisition of Macpherson Energy (as defined below). Three Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Adjusted EBITDA reconciliation to net income (loss): Net income (loss) $ 68,885 $ 3,307 $ (28,838) $ 43,354 Add (Subtract): Interest expense — — 7,729 7,729 Income tax expense — — 2,145 2,145 Depreciation, depletion, and amortization 33,956 3,017 1,082 38,055 Losses on derivatives 51,319 — — 51,319 Net cash paid for scheduled derivative settlements (37,628) — — (37,628) Other operating expenses (income) 30 (210) 533 353 Stock compensation expense 380 86 3,954 4,420 Adjusted EBITDA $ 116,942 $ 6,200 $ (13,395) $ 109,747 Six Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Adjusted EBITDA reconciliation to net income (loss): Net income (loss) $ 86,182 $ 6,950 $ (73,221) $ 19,911 Add (Subtract): Interest (income) expense — (23) 16,654 16,631 Income tax expense — — 7,703 7,703 Depreciation, depletion, and amortization 69,484 6,563 3,829 79,876 Gains on derivatives (45,956) — — (45,956) Net cash received for scheduled derivative settlements 34,943 — — 34,943 Other operating expenses (income) 716 (692) (1,343) (1,319) Stock compensation expense 417 329 7,572 8,318 Acquisition costs (1) 972 — — 972 Non-recurring costs (2) 7,313 — — 7,313 Adjusted EBITDA $ 154,071 $ 13,127 $ (38,806) $ 128,392 __________ (1) Includes costs related to the acquisition of Macpherson Energy (as defined below). (2) Non-recurring costs included executive transition costs and workforce reduction costs in the first quarter of 2023. Six Months Ended E&P Well Servicing and Abandonment Corporate/Eliminations Consolidated Company (in thousands) Adjusted EBITDA reconciliation to net income (loss): Net income (loss) $ 34,594 $ 3,023 $ (51,073) $ (13,456) Add (Subtract): Interest expense — — 15,404 15,404 Income tax benefit — — (1,206) (1,206) Depreciation, depletion, and amortization 69,430 6,196 2,206 77,832 Losses on derivatives 184,123 — — 184,123 Net cash paid for scheduled derivative settlements (69,780) — — (69,780) Other operating expenses (income) 3,525 (36) 633 4,122 Stock compensation expense 699 119 7,404 8,222 Non-recurring costs (1) — 198 — 198 Adjusted EBITDA $ 222,591 $ 9,500 $ (26,632) $ 205,459 __________ (1) Non-recurring costs included legal and professional service expenses related to acquisition and divestiture activity in the first quarter of 2022. |
Basis of Presentation (Details)
Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2023 segment subsidiary | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of subsidiaries | subsidiary | 3 |
Business segments | segment | 2 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2023 MMBTU $ / MMBtu | Sep. 30, 2023 MMBTU $ / MMBtu | Dec. 31, 2026 MMBTU $ / MMBtu | Dec. 31, 2025 MMBTU $ / MMBtu | Dec. 31, 2024 MMBTU $ / MMBtu | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Feb. 28, 2018 | |
Debt Instrument [Line Items] | ||||||||
Long-Term Debt - Principal Amount | $ 425,000 | $ 400,000 | ||||||
Less: Debt Issuance Costs | (3,653) | (4,265) | ||||||
Long-Term Debt, net | 421,347 | 395,735 | ||||||
Forecast | NWPL - Natural Gas Purchases, Swaps | ||||||||
Debt Instrument [Line Items] | ||||||||
Hedged volume (mmbtu) | MMBTU | 3,680,000 | 3,680,000 | 0 | 6,080,000 | 10,980,000 | |||
Weighted-average price ($/mmbtu) | $ / MMBtu | 5.34 | 5.34 | 0 | 4.27 | 4.21 | |||
2026 Notes | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-Term Debt - Principal Amount | $ 400,000 | 400,000 | ||||||
Interest Rate | 7% | 7% | ||||||
Revolving Credit Facility | 2021 RBL Facility | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-Term Debt - Principal Amount | $ 25,000 | $ 0 | ||||||
Variable rate | 10.25% | 9.50% | ||||||
Security | 90% | |||||||
Maximum borrowing capacity | $ 500,000 | |||||||
Revolving Credit Facility | 2022 ABL Facility | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-Term Debt - Principal Amount | $ 0 | $ 0 | ||||||
Variable rate | 9.50% | 8.30% | ||||||
Maximum borrowing capacity | $ 15,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Aug. 26, 2021 | Feb. 28, 2018 USD ($) | Dec. 31, 2023 MMBTU | Sep. 30, 2023 MMBTU | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2026 MMBTU | Dec. 31, 2025 MMBTU | Dec. 31, 2024 MMBTU | May 31, 2023 USD ($) | May 10, 2023 USD ($) | Dec. 31, 2022 USD ($) | Feb. 29, 2020 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||
Debt issuance costs | $ 3,653,000 | $ 3,653,000 | $ 4,265,000 | ||||||||||||
Amortization of debt issuance costs | 1,288,000 | $ 971,000 | |||||||||||||
Interest period one | 1 month | ||||||||||||||
Interest period two | 3 months | ||||||||||||||
Interest period three | 6 months | ||||||||||||||
Bond repurchase program, authorized amount | $ 75,000,000 | ||||||||||||||
Forecast | NWPL - Natural Gas Purchases, Swaps | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Hedged volume (mmbtu) | MMBTU | 3,680,000 | 3,680,000 | 0 | 6,080,000 | 10,980,000 | ||||||||||
Interest Expense | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amortization of debt issuance costs | 1,000,000 | $ 1,000,000 | 1,000,000 | $ 1,000,000 | |||||||||||
RBL Facility | Line of Credit | Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt issuance costs, line of credit arrangements | $ 3,000,000 | $ 3,000,000 | 4,000,000 | ||||||||||||
2021 RBL Facility | Line of Credit | Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Elected commitments | $ 200,000,000 | ||||||||||||||
Borrowing base elected | $ 200,000,000 | 250,000,000 | |||||||||||||
Leverage ratio, minimum | 25% | 25% | |||||||||||||
Leverage ratio, maximum | 275% | 275% | |||||||||||||
Maximum borrowing capacity | $ 500,000,000 | $ 500,000,000 | |||||||||||||
Leverage ratio (no more than) | 2.75 | 2.75 | |||||||||||||
Current ratio (at least) | 1 | 1 | |||||||||||||
Value of proven oil and gas reserves serving as collateral (at least) | 90% | 90% | |||||||||||||
Borrowings outstanding | $ 25,000,000 | $ 25,000,000 | |||||||||||||
Letters of credit outstanding | 10,000,000 | 10,000,000 | |||||||||||||
Available borrowing capacity | 165,000,000 | 165,000,000 | |||||||||||||
Unused availability fee | 0.50% | ||||||||||||||
2021 RBL Facility | Line of Credit | Revolving Credit Facility | Base Rate | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 2% | ||||||||||||||
2021 RBL Facility | Line of Credit | Revolving Credit Facility | Base Rate | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 3% | ||||||||||||||
2021 RBL Facility | Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 3% | ||||||||||||||
2021 RBL Facility | Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 4% | ||||||||||||||
2021 RBL Facility | Line of Credit | Letter of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum borrowing capacity | 20,000,000 | 20,000,000 | |||||||||||||
2026 Notes | Unsecured Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Fair value of debt | 372,000,000 | 372,000,000 | $ 369,000,000 | ||||||||||||
Principal amount of debt issued | $ 400,000,000 | ||||||||||||||
Proceeds from issuance of debt | $ 391,000,000 | ||||||||||||||
2022 ABL Facility | Line of Credit | Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrowing base elected | 14,000,000 | 14,000,000 | |||||||||||||
Maximum borrowing capacity | 15,000,000 | 15,000,000 | |||||||||||||
Borrowings outstanding | 0 | 0 | |||||||||||||
Letters of credit outstanding | 2,000,000 | 2,000,000 | |||||||||||||
Available borrowing capacity | $ 12,000,000 | $ 12,000,000 | |||||||||||||
Line of credit facility, borrowing capacity, percentage | 0.80 | 0.80 | |||||||||||||
Ratio of total liabilities | 1.5 | 1.5 | |||||||||||||
Percentage of revolving advances outstanding | 0.90 | ||||||||||||||
Minimum net income before taxes | $ 1 | ||||||||||||||
2022 ABL Facility | Line of Credit | Revolving Credit Facility | Prime Rate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 1.25% | ||||||||||||||
2022 ABL Facility | Line of Credit | Letter of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 7,500,000 | $ 7,500,000 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Millions | 3 Months Ended | 5 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2023 $ / bbl bbl | Sep. 30, 2023 $ / bbl bbl | Dec. 31, 2023 $ / bbl bbl | Dec. 31, 2024 $ / bbl bbl | Jun. 30, 2023 USD ($) | Dec. 31, 2026 $ / bbl bbl | Dec. 31, 2025 $ / bbl bbl | Dec. 31, 2024 $ / bbl bbl | Jul. 01, 2024 $ / bbl | Jan. 01, 2024 $ / bbl | Aug. 01, 2023 $ / bbl | |
Derivative [Line Items] | |||||||||||
Target period to cover operating expenses and fixed charges, up to (in years) | 3 years | ||||||||||
Target period for fixing the price natural gas purchases used in steam operations, up to (in years) | 3 years | ||||||||||
Deferred premiums, remaining | $ | $ 3 | ||||||||||
Forecast | Brent - Crude Oil Production, Swaps | |||||||||||
Derivative [Line Items] | |||||||||||
Hedged volume (bbls) | bbl | 1,196,000 | 1,211,717 | 487,268 | 752,125 | 3,412,817 | ||||||
Weighted-average price ($/bbl) | $ / bbl | 76.18 | 76.26 | 76.18 | 76.07 | 68.71 | 70.89 | 76.07 | ||||
Forecast | Brent - Crude Oil Production, Swaps | Subsequent Event | |||||||||||
Derivative [Line Items] | |||||||||||
Hedged volume (bbls) | bbl | 1,000 | 2,000 | 1,000 | ||||||||
Weighted-average price ($/bbl) | $ / bbl | 77.03 | 75.75 | 82.10 | ||||||||
Forecast | Brent - Crude Oil Production, Sold Calls | |||||||||||
Derivative [Line Items] | |||||||||||
Hedged volume (bbls) | bbl | 368,000 | 368,000 | 472,500 | 2,486,127 | 1,098,000 | ||||||
Weighted-average price ($/bbl) | $ / bbl | 106 | 106 | 106 | 105 | 82.21 | 91.11 | 105 | ||||
Forecast | Purchased Calls | Subsequent Event | |||||||||||
Derivative [Line Items] | |||||||||||
Hedged volume (bbls) | bbl | 1,000 | ||||||||||
Weighted-average price ($/bbl) | $ / bbl | 105 |
Derivatives - Derivative Transa
Derivatives - Derivative Transactions Resulting in Crude Oil Production and Gas Purchases Hedges (Details) - Forecast | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 MMBTU $ / MMBtu $ / bbl bbl | Sep. 30, 2023 MMBTU $ / MMBtu $ / bbl bbl | Dec. 31, 2026 MMBTU $ / MMBtu $ / bbl bbl | Dec. 31, 2025 MMBTU $ / MMBtu $ / bbl bbl | Dec. 31, 2024 MMBTU $ / bbl $ / MMBtu bbl | |
Brent - Crude Oil Production, Swaps | |||||
Derivative [Line Items] | |||||
Hedged volume (bbls) | bbl | 1,196,000 | 1,211,717 | 487,268 | 752,125 | 3,412,817 |
Weighted-average price ($/bbl) | $ / bbl | 76.18 | 76.26 | 68.71 | 70.89 | 76.07 |
Brent - Crude Oil Production, Sold Calls | |||||
Derivative [Line Items] | |||||
Hedged volume (bbls) | bbl | 368,000 | 368,000 | 472,500 | 2,486,127 | 1,098,000 |
Weighted-average price ($/bbl) | $ / bbl | 106 | 106 | 82.21 | 91.11 | 105 |
Brent - Crude Oil Production, Purchased Puts | |||||
Derivative [Line Items] | |||||
Hedged volume (bbls) | bbl | 552,000 | 552,000 | 472,500 | 2,486,127 | 1,281,000 |
Weighted-average price ($/bbl) | $ / bbl | 50 | 50 | 60 | 58.53 | 50 |
Brent - Crude Oil Production, Sold Puts | |||||
Derivative [Line Items] | |||||
Hedged volume (bbls) | bbl | 154,116 | 184,000 | 0 | 0 | 183,000 |
Weighted-average price ($/bbl) | $ / bbl | 40 | 40 | 0 | 0 | 40 |
NWPL - Natural Gas Purchases, Swaps | |||||
Derivative [Line Items] | |||||
Hedged volume (mmbtu) | MMBTU | 3,680,000 | 3,680,000 | 0 | 6,080,000 | 10,980,000 |
Weighted-average price ($/mmbtu) | $ / MMBtu | 5.34 | 5.34 | 0 | 4.27 | 4.21 |
Gas Basis Differentials, NWPL/HH Basis Swaps | |||||
Derivative [Line Items] | |||||
Hedged volume (mmbtu) | MMBTU | 610,000 | 0 | 0 | 0 | 0 |
Weighted-average price ($/mmbtu) | $ / MMBtu | 1.12 | 0 | 0 | 0 | 0 |
Derivatives - Fair Values (Gros
Derivatives - Fair Values (Gross and Net) of Outstanding Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Liabilities: | ||
Total derivatives | $ 2,694 | $ (8,305) |
Commodity Contracts | Current assets | ||
Assets: | ||
Gross Amounts Recognized at Fair Value | 29,909 | 66,974 |
Gross Amounts Offset in the Balance Sheet | (21,191) | (30,607) |
Net Fair Value Presented in the Balance Sheet | 8,718 | 36,367 |
Commodity Contracts | Non-current assets | ||
Assets: | ||
Gross Amounts Recognized at Fair Value | 34,088 | 39,886 |
Gross Amounts Offset in the Balance Sheet | (28,656) | (39,810) |
Net Fair Value Presented in the Balance Sheet | 5,432 | 76 |
Commodity Contracts | Current liabilities | ||
Liabilities: | ||
Gross Amounts Recognized at Fair Value | (31,573) | (61,713) |
Gross Amounts Offset in the Balance Sheet | 21,191 | 30,607 |
Net Fair Value Presented in the Balance Sheet | (10,382) | (31,106) |
Commodity Contracts | Non-current liabilities | ||
Liabilities: | ||
Gross Amounts Recognized at Fair Value | (29,730) | (53,452) |
Gross Amounts Offset in the Balance Sheet | 28,656 | 39,810 |
Net Fair Value Presented in the Balance Sheet | $ (1,074) | $ (13,642) |
Lawsuits, Claims, Commitments_2
Lawsuits, Claims, Commitments and Contingencies - Narrative (Details) $ in Millions | Jul. 28, 2023 USD ($) |
Subsequent Event | |
Other Commitments [Line Items] | |
Aggregate sum of settlement | $ 2.5 |
Equity (Details)
Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jul. 31, 2023 | May 31, 2023 | Mar. 31, 2023 | Feb. 28, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, dividends paid (in dollars per share) | $ 0.50 | |||||||||
Dividends declared on common stock (in dollars per share) | $ 0.12 | $ 0.50 | $ 0.19 | $ 0.06 | ||||||
Fair value of awards granted | $ 14,000,000 | |||||||||
Payments for Repurchase of Common Stock | $ 10,029,000 | $ 22,760,000 | ||||||||
Stock Repurchase Program | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Treasury stock repurchased (in shares) | 1,400,000 | |||||||||
Price of shares repurchased (in dollars per share) | $ 7.04 | |||||||||
Treasury stock, aggregate (in shares) | 11,949,247 | 11,949,247 | ||||||||
Treasury stock, aggregate | $ 114,000,000 | $ 114,000,000 | ||||||||
Increase amount of repurchases | 102,000,000 | |||||||||
Authorized amount of repurchases | $ 200,000,000 | 190,000,000 | $ 190,000,000 | |||||||
Payments for Repurchase of Common Stock | $ 10,000,000 | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Grants in period (in shares) | 1,031,000 | |||||||||
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) | 437,000 | |||||||||
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% | |||||||||
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% | |||||||||
Minimum | Total Stockholder Return Performance Based Restricted Stock Units Granted in Period | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Possible range of shares received over amount granted | 0% | |||||||||
Maximum | Total Stockholder Return Performance Based Restricted Stock Units Granted in Period | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Possible range of shares received over amount granted | 200% | |||||||||
Cash Dividend | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, dividends paid (in dollars per share) | $ 0.12 | 0.06 | ||||||||
Cash Dividend | Subsequent Event | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends declared on common stock (in dollars per share) | $ 0.12 | |||||||||
Variable Rate Dividend | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, dividends paid (in dollars per share) | $ 0.44 | |||||||||
Variable Rate Dividend | Subsequent Event | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends declared on common stock (in dollars per share) | $ 0.02 |
Supplemental Disclosures to t_3
Supplemental Disclosures to the Financial Statements - Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 7,081 | $ 12,330 |
Materials and supplies | 13,295 | 8,976 |
Deposits | 7,323 | 7,266 |
Oil inventories | 3,884 | 4,036 |
Other | 1,008 | 1,117 |
Total other current assets | $ 32,591 | $ 33,725 |
Supplemental Disclosures to t_4
Supplemental Disclosures to the Financial Statements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Operating lease assets | $ 7,000 | $ 7,000 | $ 6,000 | ||
Deferred financing costs, net of amortization | 3,000 | 3,000 | 4,000 | ||
Asset retirement obligation, decrease | 5,000 | ||||
Asset retirement obligations | 153,856 | 153,856 | 158,491 | ||
Asset retirement obligation, liabilities settled | 10,000 | ||||
Asset retirement obligation, accretion expense | 6,000 | ||||
Greenhouse gas liability, noncurrent | 31,000 | 31,000 | 23,000 | ||
Long-term lease obligations | 6,000 | 6,000 | $ 5,000 | ||
Other operating income | 1,000 | ||||
Other operating expenses, less than | $ 1,000 | ||||
Other operating (income) expenses | $ 1,033 | $ (353) | $ 1,319 | $ (4,122) | |
Supplemental property tax assessments and royalty audit charges | 2,000 | ||||
Piceance Basin | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on divestiture | $ 1,000 |
Supplemental Disclosures to t_5
Supplemental Disclosures to the Financial Statements - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable-trade | $ 31,146 | $ 40,286 |
Accrued expenses | 46,327 | 85,360 |
Royalties payable | 20,218 | 38,264 |
Taxes other than income tax liability | 6,788 | 6,640 |
Accrued interest | 11,565 | 10,885 |
Asset retirement obligations - current portion | 20,000 | 20,000 |
Operating lease liability | 1,701 | 1,666 |
Total accounts payable and accrued expenses | $ 137,745 | $ 203,101 |
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, 2023 | Jun. 30, 2022 | |
Supplemental Disclosures of Significant Non-Cash Investing Activities: | ||
Material inventory transfers to oil and natural gas properties | $ 552 | $ 1,011 |
Supplemental Disclosures of Cash Payments (Receipts): | ||
Interest, net of amounts capitalized | 15,392 | 14,988 |
Income taxes payments | $ 670 | $ 2,484 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
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) | 2,564 | 3,419 | 3,156 | 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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic EPS calculation | ||||
Net income (loss) | $ 25,770 | $ 43,354 | $ 19,911 | $ (13,456) |
Weighted-average shares of common stock outstanding (in shares) | 76,721 | 79,596 | 76,419 | 79,945 |
Basic income (loss) per share (in dollars per share) | $ 0.34 | $ 0.54 | $ 0.26 | $ (0.17) |
Diluted EPS calculation | ||||
Net income (loss) | $ 25,770 | $ 43,354 | $ 19,911 | $ (13,456) |
Weighted-average shares of common stock outstanding (in shares) | 76,721 | 79,596 | 76,419 | 79,945 |
Weighted-average common shares outstanding - diluted (in shares) | 79,285 | 83,015 | 79,575 | 79,945 |
Diluted income (loss) per share (in dollars per share) | $ 0.33 | $ 0.52 | $ 0.25 | $ (0.17) |
Restricted Stock Units (RSUs) and Performance-based Restricted Stock Units (PSUs) | ||||
Diluted EPS calculation | ||||
Potentially dilutive securities (in shares) | 3,500 | |||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 2,564 | 3,419 | 3,156 | 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 208,491 | $ 293,788 | $ 424,961 | $ 549,728 |
Gains (losses) on oil and gas sales derivatives | 20,871 | (40,658) | 59,370 | (202,516) |
Total revenues and other | 229,362 | 253,130 | 484,331 | 347,212 |
Oil sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 154,513 | 230,617 | 306,647 | 433,341 |
Natural gas sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,410 | 7,349 | 15,953 | 13,331 |
Natural gas liquids sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 780 | 2,105 | 1,460 | 3,750 |
Services revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 47,674 | 46,178 | 92,297 | 86,014 |
Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,078 | 7,419 | 8,523 | 12,838 |
Marketing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 289 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 36 | $ 120 | $ 81 | $ 165 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Business segments | segment | 2 | |||
Costs and expenses | $ 184,072 | $ 199,860 | $ 439,901 | $ 346,415 |
Revenues | 208,491 | $ 293,788 | 424,961 | $ 549,728 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Costs and expenses | $ 2,000 | |||
Revenues | $ 3,000 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting [Abstract] | |||||
Business segments | segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 208,491 | $ 293,788 | $ 424,961 | $ 549,728 | |
Net income (loss) before income taxes | 36,386 | 45,499 | 27,614 | (14,662) | |
Adjusted EBITDA | 69,055 | 109,747 | 128,392 | 205,459 | |
Capital expenditures | 21,895 | 34,086 | 42,528 | 61,706 | |
Total assets | 1,521,703 | 1,530,385 | 1,521,703 | 1,530,385 | $ 1,631,030 |
Corporate/Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (1,625) | 0 | (3,365) | 0 | |
Net income (loss) before income taxes | (30,462) | (26,693) | (65,518) | (52,279) | |
Adjusted EBITDA | (16,908) | (13,395) | (38,806) | (26,632) | |
Capital expenditures | 936 | 886 | 1,315 | 1,441 | |
Total assets | (8,644) | 2,678 | (8,644) | 2,678 | |
E&P | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 160,817 | 247,610 | 332,664 | 463,714 | |
Net income (loss) before income taxes | 62,012 | 68,885 | 86,182 | 34,594 | |
Adjusted EBITDA | 78,274 | 116,942 | 154,071 | 222,591 | |
Capital expenditures | 19,625 | 32,134 | 38,897 | 58,571 | |
Total assets | 1,457,694 | 1,456,164 | 1,457,694 | 1,456,164 | |
Well Servicing and Abandonment | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 49,299 | 46,178 | 95,662 | 86,014 | |
Net income (loss) before income taxes | 4,836 | 3,307 | 6,950 | 3,023 | |
Adjusted EBITDA | 7,689 | 6,200 | 13,127 | 9,500 | |
Capital expenditures | 1,334 | 1,066 | 2,316 | 1,694 | |
Total assets | $ 72,653 | $ 71,543 | $ 72,653 | $ 71,543 |
Segment Information - Adjusted
Segment Information - Adjusted EBITDA Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||||
Net income (loss) | $ 25,770 | $ (5,859) | $ 43,354 | $ (56,810) | $ 19,911 | $ (13,456) |
Interest (income) expense | 8,794 | 7,729 | 16,631 | 15,404 | ||
Income tax expense (benefit) | 10,616 | 2,145 | 7,703 | (1,206) | ||
Depreciation, depletion, and amortization | 39,755 | 38,055 | 79,876 | 77,832 | ||
Losses (gains) on derivatives | (6,847) | 51,319 | (45,956) | 184,123 | ||
Net cash paid for scheduled derivative settlements | (12,524) | (37,628) | 34,943 | (69,780) | ||
Other operating (income) expenses | (1,033) | 353 | (1,319) | 4,122 | ||
Stock compensation expense | 3,552 | 4,420 | 8,318 | 8,222 | ||
Acquisition costs | 972 | 0 | 972 | 0 | ||
Non-recurring costs | 7,313 | 198 | ||||
Adjusted EBITDA | 69,055 | 109,747 | 128,392 | 205,459 | ||
Operating Segments | E&P | ||||||
Segment Reporting Information [Line Items] | ||||||
Net income (loss) | 62,012 | 68,885 | 86,182 | 34,594 | ||
Interest (income) expense | 0 | 0 | 0 | 0 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Depreciation, depletion, and amortization | 35,649 | 33,956 | 69,484 | 69,430 | ||
Losses (gains) on derivatives | (6,847) | 51,319 | (45,956) | 184,123 | ||
Net cash paid for scheduled derivative settlements | (12,524) | (37,628) | 34,943 | (69,780) | ||
Other operating (income) expenses | (1,093) | 30 | 716 | 3,525 | ||
Stock compensation expense | 105 | 380 | 417 | 699 | ||
Acquisition costs | 972 | 972 | ||||
Non-recurring costs | 7,313 | 0 | ||||
Adjusted EBITDA | 78,274 | 116,942 | 154,071 | 222,591 | ||
Operating Segments | Well Servicing and Abandonment | ||||||
Segment Reporting Information [Line Items] | ||||||
Net income (loss) | 4,836 | 3,307 | 6,950 | 3,023 | ||
Interest (income) expense | (28) | 0 | (23) | 0 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Depreciation, depletion, and amortization | 3,307 | 3,017 | 6,563 | 6,196 | ||
Losses (gains) on derivatives | 0 | 0 | 0 | 0 | ||
Net cash paid for scheduled derivative settlements | 0 | 0 | 0 | 0 | ||
Other operating (income) expenses | (610) | (210) | (692) | (36) | ||
Stock compensation expense | 184 | 86 | 329 | 119 | ||
Acquisition costs | 0 | 0 | ||||
Non-recurring costs | 0 | 198 | ||||
Adjusted EBITDA | 7,689 | 6,200 | 13,127 | 9,500 | ||
Corporate/Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Net income (loss) | (41,078) | (28,838) | (73,221) | (51,073) | ||
Interest (income) expense | 8,822 | 7,729 | 16,654 | 15,404 | ||
Income tax expense (benefit) | 10,616 | 2,145 | 7,703 | (1,206) | ||
Depreciation, depletion, and amortization | 799 | 1,082 | 3,829 | 2,206 | ||
Losses (gains) on derivatives | 0 | 0 | 0 | 0 | ||
Net cash paid for scheduled derivative settlements | 0 | 0 | 0 | 0 | ||
Other operating (income) expenses | 670 | 533 | (1,343) | 633 | ||
Stock compensation expense | 3,263 | 3,954 | 7,572 | 7,404 | ||
Acquisition costs | 0 | 0 | ||||
Non-recurring costs | 0 | 0 | ||||
Adjusted EBITDA | $ (16,908) | $ (13,395) | $ (38,806) | $ (26,632) |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Macpherson Energy Corporation - Forecast - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Jul. 31, 2024 | Sep. 30, 2023 | |
Subsequent Event [Line Items] | ||
Consideration transferred | $ 70 | |
Payments to acquire business | $ 20 | 50 |
Consideration allocated from capital expenditures | $ 35 |