Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 27, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Brigham Minerals, Inc. | ||
Entity Central Index Key | 0001745797 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Shell Company | false | ||
Entity Public Float | $ 431.9 | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 34,181,268 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 22,706,711 |
Consolidated and Combined Balan
Consolidated and Combined Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 51,133 | $ 31,985 |
Restricted cash | 0 | 474 |
Accounts receivable | 30,291 | 20,695 |
Prepaid expenses and other | 1,688 | 7,103 |
Short-term derivative assets | 0 | 1,057 |
Total current assets | 83,112 | 61,314 |
Non-current assets: | ||
Unevaluated property | 291,664 | 228,151 |
Evaluated property | 449,061 | 289,851 |
Less accumulated depreciation, depletion, and amortization | (61,103) | (27,628) |
Total oil and gas properties, net | 679,622 | 490,374 |
Other property and equipment | 5,095 | 5,408 |
Less accumulated depreciation | (3,703) | (3,115) |
Other property and equipment - net | 1,392 | 2,293 |
Deferred tax asset | 18,823 | 0 |
Other assets, net | 1,213 | 45 |
Total assets | 784,162 | 554,026 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 11,533 | 5,662 |
Current portion of debt | 0 | 2,188 |
Total current liabilities | 11,533 | 7,850 |
Long-term debt | 0 | 168,517 |
Deferred tax liability | 0 | 3,684 |
Other non-current liabilities | 803 | 27 |
Temporary equity | 454,507 | 0 |
Shareholders' and members' equity: | ||
Members' contributed capital | 0 | 208,728 |
Preferred stock, $0.01 par value; 50,000,000 authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 323,578 | (3,057) |
Accumulated (deficit) earnings | (6,599) | 168,277 |
Total shareholders' equity attributable to Brigham Minerals, Inc. and members' equity | 317,319 | 373,948 |
Total liabilities and shareholders' and members' equity | 784,162 | 554,026 |
Class A Common Stock | ||
Shareholders' and members' equity: | ||
Common stock | 340 | 0 |
Class B Common Stock | ||
Shareholders' and members' equity: | ||
Common stock | $ 0 | $ 0 |
Consolidated and Combined Bal_2
Consolidated and Combined Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 34,040,934 | |
Common stock, shares outstanding (in shares) | 34,040,934 | |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 22,847,045 | |
Common stock, shares outstanding (in shares) | 22,847,045 |
Consolidated and Combined State
Consolidated and Combined Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES | |||
Mineral and royalty revenues | $ 97,886 | $ 59,758 | $ 30,066 |
Lease bonus and other revenues | 3,629 | 7,506 | 10,842 |
Total revenues | 101,515 | 67,264 | 40,908 |
OTHER OPERATING INCOME: | |||
Gain on sale of oil and gas properties, net | 0 | 0 | 94,551 |
OPERATING EXPENSES | |||
Gathering, transportation and marketing | 4,985 | 3,944 | 1,754 |
Severance and ad valorem taxes | 6,409 | 3,536 | 1,601 |
Depreciation, depletion, and amortization | 30,940 | 13,915 | 6,955 |
General and administrative | 21,963 | 6,638 | 3,935 |
Total operating expenses | 64,297 | 28,033 | 14,245 |
NET INCOME FROM OPERATIONS | 37,218 | 39,231 | 121,214 |
(Loss) gain on derivative instruments, net | (568) | 424 | (121) |
Interest expense, net | (5,609) | (7,446) | (556) |
Loss on extinguishment of debt | (6,892) | 0 | 0 |
Gain (loss) on sale and distribution of equity securities | 0 | 823 | (4,222) |
Other income, net | 169 | 110 | 305 |
Income before income taxes | 24,318 | 33,142 | 116,620 |
Income tax expense | 2,679 | 327 | 1,008 |
NET INCOME | (21,639) | (32,815) | (115,612) |
Less: Net income attributable to temporary equity | (5,092) | (30,976) | (115,612) |
Less: Net income attributable to temporary equity | (9,646) | 0 | 0 |
Net income attributable to common shareholders | $ 6,901 | $ 1,839 | $ 0 |
NET INCOME PER COMMON SHARE | |||
Basic (in dollars per share) | $ 0.26 | $ 0 | $ 0 |
Diluted (in dollars per share) | $ 0.26 | $ 0 | $ 0 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||
Basic (in shares) | 22,870 | 0 | 0 |
Diluted (in shares) | 22,870 | 0 | 0 |
Consolidated and Combined Sta_2
Consolidated and Combined Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 21,639 | $ 32,815 | $ 115,612 |
Other comprehensive income | |||
Unrealized gains (losses) on available for sale equity securities, net | 0 | 141 | (3,540) |
Reclassification of (gains) losses on sale and distribution of available for sale equity securities | 0 | (823) | 4,222 |
Other comprehensive income | 0 | (682) | 682 |
COMPREHENSIVE INCOME | 21,639 | 32,133 | 116,294 |
Comprehensive income attributable to Predecessor | (5,092) | (30,294) | (116,294) |
Comprehensive income attributable to temporary equity | (9,646) | 0 | 0 |
Comprehensive income attributable to shareholders | $ 6,901 | $ 1,839 | $ 0 |
Consolidated and Combined Sta_3
Consolidated and Combined Statement of Changes in Shareholders' and Members' Equity - USD ($) $ in Thousands | Total | Members' Contributed Capital | Additional Paid-In Capital | AOCI | [1] | Retained Earnings | Class A Common Stock | Class A Common StockCommon Stock | Class B Common Stock | Class B Common StockCommon Stock | December Offering | December OfferingAdditional Paid-In Capital | December OfferingClass A Common StockCommon Stock | December OfferingClass B Common StockCommon Stock |
Beginning balance at Dec. 31, 2016 | $ 300,498 | $ 280,648 | $ 19,850 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Contributions | 37,600 | 37,600 | ||||||||||||
Distributions | (152,218) | (152,218) | ||||||||||||
Other comprehensive income | 682 | $ 682 | ||||||||||||
NET INCOME | 115,612 | 115,612 | ||||||||||||
Net income attributable to predecessor | 115,612 | |||||||||||||
Net income attributable to shareholders | 0 | |||||||||||||
Ending balance at Dec. 31, 2017 | 302,174 | 166,030 | 682 | 135,462 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Contributions | 45,078 | 45,078 | ||||||||||||
Distributions | (3,313) | (3,313) | ||||||||||||
Other comprehensive income | (682) | $ (682) | ||||||||||||
NET INCOME | 32,815 | |||||||||||||
Net income attributable to predecessor | 30,976 | 30,976 | ||||||||||||
Deferred tax liability arising from corporate reorganization | (3,057) | $ (3,057) | ||||||||||||
Proceeds from sale of equity securities | 933 | 933 | ||||||||||||
Net income attributable to shareholders | 1,839 | 1,839 | ||||||||||||
Ending balance at Dec. 31, 2018 | 373,948 | 208,728 | (3,057) | 168,277 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income attributable to predecessor | 5,092 | 5,092 | ||||||||||||
Net income attributable to shareholders | 848 | 848 | ||||||||||||
Ending balance at Apr. 16, 2019 | 379,888 | 208,728 | (3,057) | 174,217 | ||||||||||
Beginning balance at Dec. 31, 2018 | 373,948 | 208,728 | (3,057) | 168,277 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Other comprehensive income | 0 | |||||||||||||
NET INCOME | 21,639 | |||||||||||||
Net income attributable to predecessor | 5,092 | |||||||||||||
Net income attributable to shareholders | 6,901 | |||||||||||||
Ending balance at Dec. 31, 2019 | 317,319 | 323,578 | (6,599) | $ 340 | ||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 34,040,934 | 34,041,000 | 22,847,045 | 22,847,000 | ||||||||||
Beginning balance at Apr. 16, 2019 | 379,888 | 208,728 | (3,057) | 174,217 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Conversion of PE Units for Class A Common Stock and Class B Common Stock | 0 | $ (208,728) | 380,205 | (171,530) | $ 53 | |||||||||
Conversion of PE Units for Class A Common Stock and Class B Common Stock (in shares) | 5,322,000 | 28,778,000 | ||||||||||||
Issuance of common stock in IPO, net of offering cost (in shares) | 16,675,000 | 6,000,000 | ||||||||||||
Issuance of common stock in IPO, net of offering cost | 273,448 | 273,281 | $ 167 | $ 102,680 | $ 102,620 | $ 60 | ||||||||
Deferred tax asset arising from the IPO | 13,664 | 13,664 | 9,508 | 9,508 | ||||||||||
Reclassification of noncontrolling interests to temporary equity | (518,000) | (518,000) | ||||||||||||
Share-based compensation expense (in shares) | 124,000 | |||||||||||||
Share-based compensation expense | 12,633 | 12,632 | $ 1 | |||||||||||
Dividends paid | (14,663) | (14,663) | ||||||||||||
Dividend equivalent rights | (676) | (676) | ||||||||||||
Net income attributable to shareholders | 6,053 | 6,053 | ||||||||||||
Adjustment of temporary equity to redemption amount | (51,572) | (51,572) | ||||||||||||
Conversion of Class B shares to Class A shares (in shares) | 5,931,000 | (5,931,000) | ||||||||||||
Conversion of Class B shares to Class A shares | 104,390 | 104,331 | $ 59 | |||||||||||
Restricted stock forfeited (in shares) | (11,000) | |||||||||||||
Restricted stock forfeited | $ (34) | $ (34) | ||||||||||||
Ending balance at Dec. 31, 2019 | $ 317,319 | $ 323,578 | $ (6,599) | $ 340 | ||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 34,040,934 | 34,041,000 | 22,847,045 | 22,847,000 | ||||||||||
[1] | AOCI - Accumulated other comprehensive income |
Consolidated and Combined Sta_4
Consolidated and Combined Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
NET INCOME | $ 21,639 | $ 32,815 | $ 115,612 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 30,940 | 13,915 | 6,955 |
Share-based compensation expense | 10,049 | 0 | 0 |
Loss on extinguishment of debt | 6,892 | 0 | 0 |
Amortization of debt issue costs | 433 | 690 | 121 |
Deferred income taxes | 665 | 237 | 295 |
Loss (gain) on derivative instruments, net | 568 | (424) | 121 |
Net cash received (paid) for derivative settlements | 470 | (754) | 0 |
(Gain) loss on sale and distribution of equity securities | 0 | (823) | 4,222 |
Bad debt expense | 669 | 382 | 0 |
(Gain) on sale of oil and gas properties | 0 | 0 | (94,551) |
Changes in operating assets and liabilities: | |||
(Increase)/Decrease in accounts receivable | (10,246) | (8,022) | (6,787) |
(Increase)/Decrease in other current assets | 1,787 | (6,116) | (44) |
Increase/(Decrease) in accounts payable and accrued liabilities | 5,112 | (484) | 3,956 |
Increase/(Decrease) in other long-term liabilities | 47 | 28 | 0 |
Other operating | 0 | 0 | (499) |
Net cash provided by (used in) operating activities | 69,025 | 31,444 | 29,401 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Additions to oil and gas properties | (219,481) | (195,603) | (101,437) |
Additions to other fixed assets | (474) | (723) | (1,311) |
Proceeds from sale of oil and gas properties, net | 3,123 | 125 | 111,024 |
Proceeds from sale of equity securities | 0 | 933 | 17,896 |
Net cash provided by (used in) investing activities | (216,832) | (195,268) | 26,172 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Payments of short-term related party loan | 0 | (7,000) | 0 |
Borrowing of short-term related party loan | 0 | 7,000 | 0 |
Payments of short-term debt | (4,596) | 0 | 0 |
Payments of long-term debt | (275,404) | (70,000) | (15,000) |
Borrowing of long-term debt | 105,000 | 218,000 | 27,000 |
Payment of debt extinguishment fees | (2,091) | 0 | 0 |
Proceeds from issuance of Class A common stock sold in initial public offering, net of offering costs | 277,075 | 0 | 0 |
Proceeds from issuance of Class A common stock, net of offering costs | 102,680 | 0 | 0 |
Capital contributions | 0 | 46,011 | 37,000 |
Capital distributions | (441) | 0 | (131,544) |
Dividends paid | (14,663) | 0 | 0 |
Distributions to holders of temporary equity | (19,731) | 0 | 0 |
Loan closing costs | (1,348) | (4,614) | (103) |
Net cash provided by (used in) financing activities | 166,481 | 189,397 | (82,647) |
Increase/Decrease in cash, cash equivalents and restricted cash | 18,674 | 25,573 | (27,074) |
Cash, cash equivalents and restricted cash, beginning of period | 32,459 | 6,886 | 33,960 |
Cash, cash equivalents and restricted cash end of period | 51,133 | 32,459 | 6,886 |
Supplemental disclosure of non-cash activity: | |||
Equity securities received | 0 | 0 | 45,633 |
Equity securities distributed | 0 | 3,313 | (20,092) |
Accrued capital expenditures | 63 | 1,426 | 73 |
Vesting of A-M units | 0 | 0 | 600 |
Capitalized share-based compensation cost | 3,818 | 0 | 0 |
Temporary equity cumulative adjustment to fair value | 51,572 | 0 | 0 |
Supplemental cash flow information: | |||
Cash paid for interest | 6,192 | 6,123 | 458 |
Cash paid for taxes | $ 832 | $ 604 | $ 2 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Description of the Business Brigham Minerals, Inc. (together with its wholly owned subsidiaries, “Brigham Minerals” or the “Company”) is a Delaware corporation formed in June 2018 to become a holding company. Brigham Minerals acquired an indirect interest in Brigham Resources, LLC (“Brigham Resources”), our predecessor, on July 16, 2018 in a series of restructuring transactions pursuant to which certain entities affiliated with Warburg Pincus LLC (“Warburg Pincus”) contributed all of their respective interests in the entities through which they held interests in Brigham Resources to Brigham Minerals in exchange for all of the outstanding shares of common stock of Brigham Minerals (the “July 2018 restructuring”). As a result of such restructuring transactions, Brigham Minerals became wholly owned by an entity affiliated with Warburg Pincus, and Brigham Minerals indirectly owned a 16.5% membership interest in Brigham Resources. The remaining outstanding membership interests of Brigham Resources remained with certain other entities affiliated with Warburg Pincus, Yorktown Partners LLC and Pine Brook Road Advisors, LP, Brigham Minerals’ management and its other investors (collectively, the “Original Owners”). On November 20, 2018, Brigham Resources underwent a second series of restructuring transactions (the “November 2018 restructuring”). In the November 2018 restructuring, Brigham Resources became a wholly owned subsidiary of Brigham Minerals Holdings, LLC (“Brigham LLC”), which was a wholly owned subsidiary of Brigham Equity Holdings, LLC (“Brigham Equity Holdings”), and Brigham Equity Holdings became wholly owned by the owners of Brigham Resources immediately prior to such restructuring, directly or indirectly, through Brigham Minerals. As a result of the foregoing transactions, there was no change in the control or economic interests of the Original Owners and Brigham Minerals in Brigham Resources, although their ownership became indirect through Brigham Equity Holdings and its wholly owned subsidiary, Brigham LLC. The July 2018 restructuring and the November 2018 restructuring are collectively referred to herein as, the “2018 corporate reorganizations.” Brigham Resources wholly owns Brigham Minerals, LLC and Rearden Minerals, LLC (collectively, the “Minerals Subsidiaries”), which acquire and actively manage a portfolio of mineral and royalty interests. The Minerals Subsidiaries are Brigham Resources’ sole material assets. Initial Public Offering In April 2019, Brigham Minerals completed an initial public offering of 16,675,000 shares of Class A common stock at a price to the public of $18.00 per share (the “IPO”). This resulted in net proceeds of approximately $273.4 million , after deducting underwriting commissions and discounts and offering expenses. As a result of the IPO and the corporate restructuring described below, Brigham Minerals became a holding company whose sole material asset consisted of a 43.3% interest in Brigham LLC, which wholly owns Brigham Resources. Brigham Resources continues to wholly own the Minerals Subsidiaries, which own all of Brigham Resources' operating assets. In connection with the IPO, Brigham Minerals became the sole managing member of Brigham LLC and is responsible for all operational, management and administrative decisions relating to Brigham LLC’s business and consolidates the financial results of Brigham LLC and its wholly-owned subsidiary, Brigham Resources. In connection with the IPO, • all of the outstanding membership interests in Brigham LLC were converted into a single class of common units in Brigham LLC (the “Brigham LLC Units”); • Brigham Minerals issued shares of Class A common stock to certain of our Original Owners in exchange for incentive units in Brigham Equity Holdings; • Brigham Equity Holdings distributed all of its equity interests in Brigham LLC, other than its interests in Brigham LLC attributable to certain unvested incentive units in Brigham Equity Holdings, to the Original Owners and Brigham Minerals (which resulted in the ownership in Brigham LLC of our Original Owners with respect to unvested incentive units remaining consolidated in Brigham Equity Holdings); • Brigham Minerals issued 16,675,000 shares of Class A common stock, including the Underwriters' overallotment, to purchasers in the IPO in exchange for the cash proceeds of the IPO; • each holder of Brigham LLC Units following the restructuring (a “Brigham Unit Holder”), other than Brigham Minerals and its subsidiaries, received a number of shares of Class B common stock equal to the number of Brigham LLC Units held by such Brigham Unit Holder following the IPO; and • Brigham Minerals contributed, directly or indirectly, the net proceeds of the IPO to Brigham LLC in exchange for an additional number of Brigham LLC Units such that Brigham Minerals holds, directly or indirectly, a total number of Brigham LLC Units equal to the number of shares of Class A common stock outstanding following the IPO. After the transactions discussed above and after the IPO, • the Original Owners own all of Brigham Minerals' Class B common stock, representing 56.7% of Brigham Minerals' capital stock; • the Original Owners own 5,322,197 , or 24.2% , of Brigham Minerals' Class A common stock, representing 10.5% of Brigham Minerals' capital stock; • investors in the IPO own 16,675,000 shares, or 75.8% , of Brigham Minerals' Class A common stock, representing 32.8% of Brigham Minerals' capital stock; • Brigham Minerals owns an approximate 43.3% interest in Brigham LLC; and • the Original Owners own directly an approximate 56.7% interest in Brigham LLC (in addition to the 10.5% interest in Brigham LLC the Original Owners own indirectly through their ownership of shares of Brigham Minerals' Class A common stock). Following the IPO, and prior to December 31, 2019 , Brigham Resources: • fully repaid the $200.0 million outstanding balance under the Owl Rock credit facility (as defined below) on May 7, 2019; • wrote-off $4.0 million of capitalized debt issuance cost and incurred $2.1 million in prepayment fees and $0.8 million in accrued legal fees resulting in a loss on extinguishment of debt of approximately $6.9 million in its statement of operations; • applied capitalized issuance cost of $8.7 million as a reduction of additional paid-in-capital of which $3.6 million was incurred in 2018 and $5.1 million was incurred in 2019 ; • recognized a cumulative effect adjustment of $2.0 million of share-based compensation cost related to the Incentive Units (as defined below), pertaining to the period from the grant date through the IPO; • recognized an additional charge for share-based compensation cost of approximately $11.9 million related to the estimated fair value of the restricted stock awards (“RSAs”), restricted stock units subject to time-based vesting (“RSUs”) and restricted stock units subject to performance based vesting (“PSUs”), net of $3.8 million of capitalized share-based compensation expense, all of which was non-cash. In addition, as the vesting conditions of the Incentive Units, RSAs, RSUs and PSUs are satisfied, Brigham Minerals will recognize additional non-cash charges for share-based compensation cost of approximately $19.3 million , a portion of which will be capitalized; • entered into a credit agreement on May 16, 2019 with a banking syndicate, including Wells Fargo Bank, N.A., as administrative agent for a new revolving credit facility (as defined below) with a borrowing base of $135.0 million and subsequently increased to $150.0 million as of December 31, 2019 ; and • received a full refund of the cash collateral related to the existing WTI fixed price swap contracts, which was $1.6 million as of May 2019, upon entering into the new revolving credit facility. December 2019 Offering On December 16, 2019, Brigham Minerals completed an offering of 12,650,000 shares of its Class A common stock (the "December 2019 Offering"), including 6,000,000 shares issued and sold by Brigham Minerals and an aggregate of 6,650,000 shares sold by certain shareholders of the Company (the "Selling Shareholders"), of which 5,496,813 represents shares issued upon redemption of an equivalent number of their Brigham LLC units, at a price to the public of $18.10 per share ( $17.376 per share net of underwriting discounts and commissions). After deducting underwriting discounts, commissions and offering expenses, Brigham Minerals received net proceeds of approximately $102.7 million which were used to repay $80.0 million of existing indebtedness under our revolving credit agreement and will be used to fund future mineral and royalty acquisitions. Brigham Minerals did not receive any proceeds from the sale of shares of Class A common stock by the Selling Shareholders. Following the completion of the December 2019 Offering and certain redemptions of Class B shares and an equivalent number of Brigham LLC units to Class A shares completed during November and December 2019, Brigham Minerals owned a 59.8% interest in Brigham LLC and the Sponsors collectively owned 39.1% of the outstanding voting stock of Brigham Minerals as of December 31, 2019 . Basis of Presentation Subsequent to the July 2018 restructuring and prior to the IPO, Brigham Minerals used the equity method of accounting for its investment in Brigham Resources, its predecessor, because its 16.5% ownership in Brigham Resources provided Brigham Minerals with significant influence, but not with a controlling financial interest or the ability to direct the most significant activities of Brigham Resources. Upon the completion of the IPO, Brigham Minerals indirectly owned an approximate 43.3% interest of Brigham Resources and 100% of the voting rights and consolidates the results of operations of Brigham Resources. In order to furnish comparative financial information, the accompanying consolidated and combined financial statements and related notes of Brigham Minerals for periods prior to the IPO have been retrospectively recast to include the combined historical financial information of both Brigham Resources (at historical carrying values) and Brigham Minerals, taking into account state and federal income taxes and liabilities associated with Brigham Minerals. All intercompany transactions between Brigham Minerals and Brigham Resources have been eliminated. Because Brigham Minerals acquired an interest in Brigham Resources as part of certain reorganization transactions in 2018, net income is attributable to stockholders of Brigham Minerals in addition to our Predecessor beginning in 2018. The accompanying consolidated and combined financial statements of Brigham Minerals have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated and combined financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for a fair representation. Brigham Minerals operates in one segment: oil and natural gas exploration and production. Brigham Resources has historically owned and operated two distinct lines of business through its subsidiaries: • the Minerals Business through the Minerals Subsidiaries; and • an upstream oil and gas exploration and production business (the “Upstream Business”) in the Southern Delaware Basin of West Texas (including interests in certain related gathering systems) through Brigham Resources Operating, LLC (“Brigham Operating”). In February 2017, Brigham Operating completed the sale of substantially all of its oil and natural gas properties to an unrelated third-party purchaser, following which Brigham Operating’s only material assets consisted of an ownership interest in Oryx Southern Delaware Holdings, LLC (“Oryx”), an entity that operates a crude oil gathering system located in the southern Delaware Basin. Immediately prior to the IPO, Brigham Resources distributed to its members or their affiliates 100% of the equity interests in Brigham Operating. Subsequent to such distribution Brigham Resources no longer had any direct or indirect ownership interest in Brigham Operating. Accordingly, the accompanying consolidated financial statements of Brigham Minerals exclude the assets, liabilities and results of operations of Brigham Operating. Subsequent to the issuance of our December 31, 2017 consolidated financial statements, we corrected the amount of equity securities distributed, included in the supplemental disclosure of non-cash activity, from $37,988 to $20,092 (in thousands) for the year ended December 31, 2017 . Additionally, we corrected the presentation of gains and losses on sales of assets, and we included these gains and losses in other operating income for all periods presented. This resulted in a $94.6 million increase to previously reported operating expenses and a corresponding increase to previously reported operating income for the year ended December 31, 2017 . These corrections did not impact the previously reported consolidated balance sheet as of December 31, 2017 or statements of comprehensive income, members’ equity or cash flows and have been accounted for as immaterial corrections of errors. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Emerging Growth Company Status As a company with less than $1.07 billion in revenues during its last fiscal year, Brigham Minerals qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). An emerging growth company may take advantage of specified reduced reporting and other regulatory requirements. Brigham Minerals will remain an “emerging growth company” until as late as the last day of Brigham Minerals’ 2023 fiscal year, or until the earliest of (i) the last day of the fiscal year in which Brigham Minerals has $1.07 billion or more in annual revenues; (ii) the date on which Brigham Minerals becomes a “large accelerated filer” (the fiscal year-end on which the total market value of Brigham Minerals’ common equity securities held by non-affiliates is $700 million or more as of June 30); (iii) the date on which Brigham Minerals issues more than $1.0 billion of non-convertible debt over a three-year period. As a result of Brigham Minerals’ election to avail itself of certain provisions of the JOBS Act, the information that Brigham Minerals provides may be different than the information provided by other public companies. Use of Estimates The preparation of consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the consolidated and combined financial statements and accompanying notes. Although management believes these estimates are reasonable, actual results could differ from these estimates. Changes in estimates are recorded prospectively. The accompanying consolidated and combined financial statements are based on a number of significant estimates including quantities of oil, natural gas and NGLs reserves that are the basis for the calculations of depreciation, depletion, amortization (“DD&A”) and impairment of oil and natural gas properties. Reservoir engineering is a subjective process of estimating underground accumulations of oil and natural gas and there are numerous uncertainties inherent in estimating quantities of proved oil and natural gas reserves. The accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. As a result, reserve estimates may differ from the quantities of oil and natural gas that are ultimately recovered. Brigham Minerals’ reserve estimates are audited by Cawley, Gillespie & Associates, Inc. (“CG&A”), an independent petroleum engineering firm. Other items subject to significant estimates and assumptions include the carrying amount of oil and natural gas properties, valuation of derivative instruments, share-based compensation and revenue accruals. Cash and Cash Equivalents Brigham Minerals considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted Cash Restricted cash includes cash that is contractually restricted for its use through an agreement with a non-related party. In 2019, the Company adopted ASU 2016-18, Statement of Cash Flows, which amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The adoption resulted in an increase in reported investing cash flow of $0.5 million for the year ended December 31, 2018 with a corresponding increase to the reported end of period cash balances. The December 31, 2018 accompanying statement of cash flow that was adjusted as a result of adoption of ASU 2016-18 is summarized below: Years Ended December 31, 2018 2018 (In thousands) As reported As adjusted Changes in restricted cash held in escrow for acquisitions $ (474 ) $ — Net cash provided by (used in) investing activities (195,742 ) (195,268 ) Increase in cash, cash equivalents and restricted cash $ 25,099 $ 25,573 Cash, cash equivalents and restricted cash, beginning of period 6,886 6,886 Cash, cash equivalents and restricted cash end of period 31,985 32,459 Accounts Receivables Receivables consist of royalty income due from operators for oil and gas sales to purchasers. Those purchasers remit payment for production to the operator of our properties and the operator, in turn, remits payment to us. Receivables from third parties for which we did not receive actual information, either due to timing delays or due to the unavailability of data at the time when revenues are recognized, are estimated. Volume estimates for wells with available historical actual data are based upon (i) the historical actual data for the months the data is available, or (ii) engineering estimates for the months the historical actual data is not available. We do not recognize revenues for wells with no historical actual data because we cannot conclude that it is probable that a significant revenue reversal will not occur in future periods. Pricing estimates are based upon actual prices realized in an area by adjusting the market price for the average basis differential from market on a basin-by-basin basis. Brigham Minerals routinely reviews outstanding balances, assesses the financial strength of its customers and records a reserve for amounts not expected to be fully recovered. We recorded an allowance for doubtful accounts of $0.6 million and $0.4 million for the year ended December 31, 2019 and December 31, 2018 , which was included in general and administrative expenses. At December 31, 2019 and 2018 , accounts receivable was comprised of the following: December 31, (In thousands) 2019 2018 Oil and gas sales $ 27,888 $ 19,769 Allowance for doubtful accounts (556 ) (382 ) Other 2,959 1,308 Total accounts receivables $ 30,291 $ 20,695 Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject Brigham Minerals to concentrations of credit risk consist of cash, accounts receivable, commodity derivative financial instruments and its prior revolving credit facility. Cash and cash equivalents are held in a few financial institutions in amounts that may, at times, exceed federally insured limits. However, no losses have been incurred and management believes that counterparty risks are minimal based on the reputation and history of the institutions selected. Accounts receivable are concentrated among operators and purchasers engaged in the energy industry within the United States. Management periodically assesses the financial condition of these entities and institutions and considers any possible credit risk to be minimal. Concentrations of oil and gas sales to significant customers (operators) are presented in the table below. For the year ended December 31, 2019 2018 2017 Occidental Petroleum Corp. 16 % 15 % — Continental Resources, Inc. 12 % 10 % 10 % XTO Energy, Inc. 10 % — — Noble Energy, Inc. 5 % 9 % 13 % Management does not believe that the loss of any customer would have a long-term material adverse effect on our financial position or the results of operations. Investments in Equity Securities In January 2019, the Company adopted ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU changes to the current GAAP model primarily affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. Under the new standard, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale classification (changes in fair value reported in other comprehensive income) for equity securities with readily determinable fair values. Prior to January 2019, Brigham Minerals classified its equity securities as available-for-sale, and as such, they were carried at fair value. Changes in fair value of available-for-sale securities were reported as a component of other comprehensive income. Losses were recognized within the consolidated and combined statement of operations when a decline in value is determined to be other-than-temporary. Brigham Minerals used the average cost method to determine the realized gain or loss for each sale or distribution of available-for-sale securities. Financial Instruments Brigham Minerals’ financial instruments consist of cash and cash equivalents, receivables, payables, derivative assets and liabilities, investments in equity securities and long-term debt. The carrying amounts of cash and cash equivalents, receivables and payables approximate fair value due to the highly liquid or short-term nature of these instruments. The equity securities are publicly traded and are valued using quoted market prices. The fair values of Brigham Minerals’ derivative assets and liabilities are based on a third-party industry-standard pricing model using contract terms and prices and assumptions and inputs that are substantially observable in active markets throughout the full term of the instruments, including forward oil and gas price curves, discount rates, volatility factors and credit risk adjustments. The carrying amount of long-term debt associated with borrowings outstanding under Brigham Minerals’ revolving credit facility approximates fair value as borrowings bear interest at variable market rates. See “Note 5.—Derivative Instruments,” “Note 6.—Fair Value Measurements” and “Note 7.—Long-Term Debt.” Derivative Instruments In the normal course of business, Brigham Minerals is exposed to certain risks, including changes in the prices of oil, natural gas and NGLs and interest rates. Brigham Minerals has occasionally entered into derivative contracts to manage its exposure to these risks. Brigham Minerals’ risk management activity is generally accomplished through over-the-counter derivative contracts with large financial institutions. Brigham Minerals does not enter into derivative instruments for speculative purposes. Derivative instruments are recognized at fair value. If a right of offset exists under master netting arrangements and certain other criteria are met, derivative assets and liabilities with the same counterparty are netted on the consolidated and combined balance sheets. Brigham Minerals does not specifically designate derivative instruments as cash flow hedges, even though they reduce its exposure to changes in oil and natural gas prices; therefore, gains and losses arising from changes in the fair value of derivatives are recognized on a net basis in the accompanying consolidated and combined statements of operations within (loss) gain on derivative instruments, net. Oil and Gas Properties Brigham Minerals uses the full cost method of accounting for its oil and natural gas properties. Under this method, all acquisition costs incurred for the purpose of acquiring mineral and royalty interests and certain related employee costs are capitalized into a full cost pool. Costs associated with general corporate activities are expensed in the period incurred. Capitalized costs are amortized using the units-of-production method. Under this method, the provision for depletion is calculated by multiplying total production for the period by a depletion rate. The depletion rate is determined by dividing the total unamortized cost base by net equivalent proved reserves at the beginning of the period. Costs associated with unevaluated properties are excluded from the amortizable cost base until a determination has been made as to the existence of proved reserves. Unevaluated properties are reviewed periodically to determine whether the costs incurred should be reclassified to the full cost pool and subjected to amortization. The costs associated with unevaluated properties primarily consist of acquisition costs and capitalized general and administrative costs. Unevaluated properties are assessed for impairment on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: expectation of future drilling activity; past drilling results and activity; geological and geophysical evaluations; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative acquisition costs incurred to date for such property are transferred to the full cost pool and are then subject to amortization. There was no impairment recorded for unevaluated properties in 2019 , 2018 and 2017 . Sales and abandonments of oil and natural gas properties being amortized are accounted for as adjustments to the full cost pool, with no gain or loss recognized unless the adjustments would significantly alter the relationship between capitalized costs and proved reserves. A significant alteration would not ordinarily be expected to occur upon the sale of reserves involving less than 25% of the reserve quantities of a cost center. Natural gas volumes are converted to barrels of oil equivalent (Boe) at the rate of six thousand cubic feet (Mcf) of natural gas to one barrel (Bbl) of oil. This convention is not an equivalent price basis and there may be a large difference in value between an equivalent volume of oil versus an equivalent volume of natural gas. Under the full cost method of accounting, total capitalized costs of oil and natural gas properties, net of accumulated depletion, may not exceed an amount equal to the present value of future net revenues from proved reserves, discounted at 10% per annum, plus the lower of cost or fair value of unevaluated properties (the ceiling limitation). A ceiling limitation is calculated at each reporting period. If total capitalized costs, net of accumulated DD&A are greater than the ceiling limitation, a write-down or impairment of the full cost pool is required. A write-down of the carrying value of the full cost pool is a noncash charge that reduces earnings and impacts equity in the period of occurrence and typically results in lower depletion expense in future periods. Once incurred, a write-down cannot be reversed at a later date. The ceiling limitation calculation is prepared using the 12-month first day of the month oil and natural gas average prices, as adjusted for basis or location differentials, held constant over the life of the reserves (net wellhead prices). If applicable, these net wellhead prices would be further adjusted to include the effects of any fixed price arrangements for the sale of oil and natural gas. As of December 31, 2019 , 2018 and 2017 , the full cost ceiling value of our reserves was calculated based on the unweighted arithmetic average first-day-of-the-month price for the twelve months ended December 31, 2019 , 2018 and 2017 of $55.65 , $65.66 , and $51.34 , respectively, per barrel for oil, adjusted by area for energy content, transportation fees and regional price differentials, and the unweighted arithmetic average first-day-of-the-month price for the twelve months ended December 31, 2019 , 2018 and 2017 of $2.60 , $3.12 , and $2.99 , respectively, per MMBtu for natural gas, adjusted by area for energy content, transportation fees and regional price differentials. Using these prices, the net book value of oil and natural gas was below the ceiling limitation and no write-off was necessary. Share-Based Compensation Brigham Minerals accounts for its share-based compensation including grants of the Incentive Units, restricted stock awards, time-based restricted stock units and performance-based stock units in the consolidated and combined statements of operations based on their estimated fair values at grant date. Brigham Minerals uses a Monte Carlo simulation to determine the fair value of performance-based stock units. Brigham Minerals recognizes expense on a straight-line basis over the vesting period of the respective grant, which is generally the requisite service period. Brigham Minerals capitalizes a portion of the share-based compensation cost to oil and gas properties on the consolidated and combined balance sheets. Share-based compensation expense is included in general and administrative expenses in Brigham Minerals’ consolidated and combined statements of operations included within this Annual Report. There was approximately $19.3 million of unamortized compensation expense relating to outstanding awards at December 31, 2019 , a portion of which will be capitalized. The unrecognized share-based compensation expense will be recognized on a straight-line basis over the remaining vesting periods of the awards. Brigham Minerals accounts for forfeitures as they occur. Earnings Per Share Brigham Minerals uses the “if-converted” method to determine the potential dilutive effect of its Class B common stock and the treasury stock method to determine the potential dilutive effect of outstanding Incentive Units, RSAs, RSUs, and PSUs. Employee Benefit Plan We sponsor a 401(k) tax-deferred savings plan for our employees. We match 100% of each employee’s contributions, up to 6% of the employee’s total compensation. Brigham Resources may also contribute additional amounts at its discretion. Brigham Resources contributed $0.3 million , $0.2 million and $0.1 million , to the 401(k) plan for each of the years ended December 31, 2019 , 2018 , and 2017 . Income Taxes Brigham Minerals accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are calculated by applying existing tax laws and the rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Brigham Minerals periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets, including net operating losses. In making this determination, Brigham Minerals considers all available positive and negative evidence and makes certain assumptions. Brigham Minerals considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends and its outlook for future years. Temporary Equity Brigham Minerals accounts for the Original Owners’ 40.2% interest in Brigham LLC as temporary equity as a result of certain redemption rights held by the Original Owners as discussed in “Note 9.—Temporary Equity.” As such, the Company adjusts temporary equity to its maximum redemption amount at the balance sheet date, if higher than the carrying amount. The redemption amount is based on the 10-day volume-weighted average closing price (“VWAP”) of Class A shares at the end of the reporting period. Changes in the redemption value are recognized immediately as they occur, as if the end of the reporting period was also the redemption date for the instrument, with an offsetting entry to additional paid-in capital. Revenue from Contracts with Customers On December 31, 2019 , the Company adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, ("ASC 606") using the modified retrospective approach, which only applied to contracts that were in effect as of the date of adoption. The adoption did not require an adjustment to opening retained earnings for the cumulative effect adjustment and did not impact the Company’s previously reported results of operations, nor its ongoing consolidated and combined balance sheets, statements of cash flow or statements of changes in shareholders' and members' equity. Overall, there were no material changes in the timing of the satisfaction of the Company’s performance obligations or the allocation of the transaction price to its performance obligations in applying the guidance in ASC 606 as compared to legacy U.S. GAAP. Oil and natural gas sales Oil, natural gas and NGLs sales revenues are generally recognized when control of the product is transferred to the customer, the performance obligations under the terms of the contracts with customers are satisfied and collectability is reasonably assured. All of the Company’s oil, natural gas and NGL sales are made under contracts with customers (operators). The performance obligations for the Company’s contracts with customers are satisfied at a point in time through the delivery of oil and natural gas to its customers. Accordingly, the Company’s contracts do not give rise to contract assets or liabilities. The Company typically receives payment for oil, natural gas and NGL sales within 60 days of the month of delivery, which can extend up to 9 months after initial production from the well. The Company’s contracts for oil, natural gas and NGL sales are standard industry contracts that include variable consideration based on the monthly index price and adjustments that may include counterparty-specific provisions related to volumes, price differentials, discounts and other adjustments and deductions. As each unit of product represents a separate performance obligation and the consideration is variable as it relates to oil and natural gas prices, Brigham Minerals recognizes revenue from oil and natural gas sales using the allocation exception for variable consideration in ASC 606. Lease bonus and other income Brigham Minerals also earns revenue from lease bonuses, delay rentals, and right-of-way payments. We generate lease bonus revenue by leasing our mineral interests to exploration and production companies. A lease agreement represents our contract with a customer and generally transfers the rights to any oil or natural gas discovered, grants us a right to a specified royalty interest, and requires that drilling and completion operations commence within a specified time period. The Company recognizes lease bonus revenues when the lease agreement has been executed, payment has been received, and the Company has no further obligation to refund the payment. At the time Brigham Minerals executes the lease agreement, Brigham Minerals expects to receive the lease bonus payment within a reasonable time, though in no case more than one year, such that Brigham Minerals has not adjusted the expected amount of consideration for the effects of any significant financing component per the practical expedient in ASC 606. Brigham Minerals also recognizes revenue from delay rentals to the extent drilling has not started within the specified period, payment has been received, and we have no further obligation to refund the payment. Right-of-way payments are recorded by the Company when the agreement has been executed, payment is determined to be collectable, and the Company has no further obligation to refund the payment. Allocation of transaction price to remaining performance obligations Oil and natural gas sales Brigham Minerals’ right to royalty income does not originate until production occurs and, therefore, is not considered to exist beyond each day’s production. Therefore, there are no remaining performance obligation under any of our royalty income contracts. Lease bonus and other income Given that Brigham Minerals does not recognize lease bonus or other income until a lease agreement has been executed, at which point its performance obligation has been satisfied, and payment is received, Brigham Minerals does not record revenue for unsatisfied or partially unsatisfied performance obligations as of the end of the reporting period. Prior-period performance obligations Brigham Minerals records revenue in the month production is delivered to the purchaser. As a non-operator, Brigham Minerals has limited visibility into the timing of when new wells start producing and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, Brigham Minerals is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded within the Accounts receivable line item in the accompanying consolidated and combined balance sheets. The difference between the Company’s estimates and the actual amounts received for oil and natural gas sales is recorded in the month that payment is received from the third party. For the years ended December 31, 2019 , 2018 and 2017 , revenue recognized in the reporting periods related to performance obligations satisfied in prior reporting periods was immaterial. Debt Issuance Cost Other assets include capitalized debt issuance costs of $1.2 million , net of accumulated amortization of $0.2 million as of December 31, 2019 . As of December 31, 2018 , capitalized debt issuance costs of $4.3 million , net of accumulated amortization of $0.3 million , was included in long-term debt on the consolidated and combined balance sheets. Debt issuance costs were incurred in connection with establishing and amending credit facilities for Brigham Resources and are amortized over the term of the credit facilities using the straight-line method, which approximates the effective interest rate method. Amortization expense for debt issue costs was $0.4 million , $0.7 million and $0.1 million for the years ended December 31, 2019 , 2018 , and 2017 . On July 27, 2018, the prior revolving credit facility was terminated and replaced with a new term loan facility. See further discussion in "Note 7.—Long-Term Debt" in our consolidated and combined financial statements. Recently Issued Accounting Standards Not Yet Adopted Brigham Minerals’ status as an emerging growth company under Section 107 of the JOBS Act permits it to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. Brigham Minerals is choosing to take advantage of this extended transition period and, as a result, it will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for private companies. In February 2016, the FASB issued ASU 2016-02, Leases, which requires all leasing arrangements to be presented in the balance sheet as liabilities along with a corresponding asset. ASU 2016-02 does not apply to leases of mineral rights to explore for or use crude oil and natural gas. The ASU will replace most existing lease guidance in GAAP when it becomes effective. In January 2018, the FASB issued ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, to provide an optional practical expedient to not evaluate existing or expired land easements that were not previously accounted for as leases under Topic 840. In July 2018, the FASB issued ASU 2018-11 Leases (Topic 842): Targeted Improvements, which provides for another transition method, in addition to the existing transition method, by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption (i.e. comparative periods presented in the financial statements will continue to be in accordance with current GAAP (Topic 840, Leases)). The new standard becomes effective for us during the fiscal year ending December 31, 2021 and interim periods within the fiscal year ending December 31, 2022 and early adoption is permitted. We are currently evaluating the impact that the adoption of this update will have on our consolidated and combined financial statements and related disclosures. |
Oil and Gas Properties
Oil and Gas Properties | 12 Months Ended |
Dec. 31, 2019 | |
Extractive Industries [Abstract] | |
Oil and Gas Properties | Oil and Gas Properties Brigham Minerals uses the full cost method of accounting for its oil and natural gas properties. Under this method, all acquisition costs incurred for the purpose of acquiring mineral and royalty interests, including certain internal costs, are capitalized into a full cost pool. Costs associated with general corporate activities are expensed in the period incurred. Oil and gas properties consisted of the following: December 31, (In thousands) 2019 2018 Oil and gas properties, at cost, using the full cost method of accounting: Not subject to depletion $ 291,664 $ 228,151 Subject to depletion 449,061 289,851 Total oil and gas properties, at cost 740,725 518,002 Less accumulated depreciation, depletion, and amortization (61,103 ) (27,628 ) Total oil and gas properties, net $ 679,622 $ 490,374 Costs not subject to depletion are as follows, by the year in which such costs were incurred: By Year: Total 2019 2018 2017 2016 Prior (In thousands) Property Acquisition costs $ 291,664 $ 80,964 $ 73,002 $ 66,139 $ 10,745 $ 60,814 Capitalized costs are depleted on a unit of production basis based on proved oil and natural gas reserves. Depletion expense was $30.4 million , $13.3 million and $6.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Average depletion of proved properties was $11.22 , $9.38 and $7.25 per Boe for the years ended December 31, 2019 , 2018 and 2017 , respectively. The costs associated with unevaluated properties primarily consist of acquisition costs and capitalized general and administrative costs. Brigham Minerals capitalizes certain overhead expenses and other internal costs attributable to the acquisition of mineral and royalty interests as part of its investment in oil and gas properties over the periods benefitted by these activities. Capitalized costs do not include any costs related to general corporate overhead or similar activities. Capitalized costs were $7.4 million , $2.7 million and $2.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures In 2019, Brigham Minerals adopted ASU 2017-01, Clarifying the Definition of a Business, using a prospective approach. This guidance assists in determining whether a transaction should be accounted for as an acquisition of assets or as a business. This ASU provides a screen that when substantially all of the fair value of the gross assets acquired, or disposed of, are concentrated in a single identifiable asset, or a group of similar identifiable assets, the set will not be considered a business. If the screen is not met, a set must include an input and a substantive process that together significantly contribute to the ability to create an output to be considered a business. The adoption of the new standard did not have a material impact on the consolidated and combined financial statements. During the years ended December 31, 2019 and 2018 , Brigham Minerals entered into a number of individually insignificant acquisitions of mineral and royalty interests from various sellers in Texas, Oklahoma, Colorado, New Mexico, and North Dakota, as reflected in the table below. The change in the oil and natural gas property balance is comprised of payments for acquisitions of minerals, land brokerage costs and capitalized general and administrative expenses that were funded with borrowings under its Owl Rock credit facility, our revolving credit facility and proceeds from the IPO. Assets Acquired Cash Consideration Paid (In thousands) Evaluated Unevaluated Twelve months ended December 31, 2019 $ 140,025 $ 78,093 $ 218,118 Twelve months ended December 31, 2018 $ 115,589 $ 81,367 $ 196,956 In August 2017, Brigham Minerals acquired certain mineral and royalty interests in the Delaware Basin for $29.2 million . Brigham Minerals funded the acquisition with capital contributions. The allocation of the purchase price was $20.5 million to unevaluated properties and $8.7 million to evaluated properties. In addition, during 2017, Brigham Minerals entered into a number of individually insignificant acquisitions. The change in the oil and natural gas property balance is comprised of individually insignificant payments for acquisitions of minerals, land brokerage costs and capitalized general and administrative capital expenditures. On February 28, 2017, Brigham Operating and Brigham Resources Midstream, LLC, wholly owned subsidiaries of Brigham Resources, closed on the sale of substantially all of their Southern Delaware Basin leasehold and related assets, including certain mineral and royalty interests owned by Brigham Resources, to a third-party public entity. The proceeds for mineral and royalty interests represented $156.7 million of the net adjusted sales price and consisted of cash of $111.1 million and shares valued at $45.6 million The mineral and royalty interests sold represented approximately 12% in aggregate of Brigham Minerals’ total proved reserves as of December 31, 2016. As a result of the sale, the relationship between capitalized costs and proved reserves was altered significantly and Brigham Minerals recorded a gain of $94.6 million . Reserve and Related Financial Data (SMOG) -Unaudited Oil and Natural Gas Reserves Proved reserves represent quantities of oil, natural gas and NGLs which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be recoverable in the future from known reservoirs under existing economic conditions, operating methods and government regulations. Proved developed reserves are proved reserves which can be expected to be recovered through existing wells with existing equipment, infrastructure and operating methods. Proved reserves were estimated in accordance with guidelines established by the SEC, which require that reserve estimates be prepared under existing economic and operating conditions based upon the 12-month unweighted average of the first-day-of-the-month prices. The reserves at December 31, 2019 and December 31, 2018 presented below were audited by CG&A and the reserves at December 31, 2017 presented below were prepared by CG&A. Estimates of proved reserves are inherently imprecise and are continually subject to revision based on production history, results of additional exploration and development, price changes and other factors. The reserves are located in various fields in Texas, New Mexico, Oklahoma, Colorado, Wyoming, North Dakota, Montana and Pennsylvania. All of the proved reserves are located in the continental United States. Crude Oil (MBbl) Natural Gas (Mmcf) NGL (MBbl) Total (MBoe) Proved reserve quantities, December 31, 2016 7,174 22,991 2,356 13,363 Sales of minerals-in-place (1,291 ) (815 ) (200 ) (1,627 ) Extensions and discoveries 1,548 6,012 709 3,259 Acquisitions 2,141 9,380 1,116 4,820 Revisions of previous estimates (394 ) 2,601 108 147 Production (454 ) (1,768 ) (109 ) (858 ) Proved reserve quantities, December 31, 2017 8,724 38,401 3,980 19,104 Sales of minerals-in-place — — — — Extensions and discoveries 1,765 5,285 562 3,208 Acquisitions 3,669 13,862 1,374 7,354 Revisions of previous estimates (390 ) (3,245 ) (577 ) (1,508 ) Production (777 ) (2,507 ) (222 ) (1,417 ) Proved reserve quantities, December 31, 2018 12,991 51,796 5,117 26,741 Sales of minerals-in-place (182 ) (697 ) (110 ) (409 ) Extensions and discoveries 1,997 7,780 817 4,110 Acquisitions 4,256 13,053 1,218 7,651 Revisions of previous estimates (586 ) (5,495 ) (797 ) (2,299 ) Production (1,515 ) (4,707 ) (407 ) (2,706 ) Proved reserve quantities, December 31, 2019 16,961 61,730 5,838 33,088 Proved reserve quantities at December 31, 2019 attributable to temporary equity 6,812 24,792 2,345 13,289 Proved developed reserve quantities: December 31, 2017 2,804 13,028 1,185 6,160 December 31, 2018 6,067 21,735 1,898 11,588 December 31, 2019 9,924 33,232 2,494 17,957 Proved developed reserves at December 31, 2019 attributable to temporary equity 3,986 13,346 1,002 7,212 Proved undeveloped reserve quantities: December 31, 2017 5,920 25,373 2,795 12,944 December 31, 2018 6,924 30,061 3,219 15,153 December 31, 2019 7,037 28,498 3,344 15,131 Proved undeveloped reserves at December 31, 2019 attributable to temporary equity 2,826 11,445 1,343 6,077 Changes in proved reserves that occurred during 2019 were primarily due to: • the acquisition of additional mineral interests located in the Permian, Anadarko, DJ and Williston Basins in multiple transactions, which included 7,242 MBoe of additional proved reserves which is comprised of 7,651 MBoe of acquired proved reserves and divestiture of 409 MBoe of proved reserves within the year; • well additions extensions and discoveries of approximately 4,110 MBoe, as approximately 900 gross horizontal well locations were converted from probable, possible and contingent resources to proved, due to continuous activity and delineation of additional zones on our mineral and royalty interests; and • net volume revisions of approximately 2,299 MBoe. These revisions were comprised of 902 MBoe of negative revisions attributable to pricing as well as approximately 1,397 MBoe attributable to operator development timing, unit configuration and EUR adjustments to existing proved locations. Changes in proved reserves that occurred during 2018 were primarily due to: • the acquisition of additional mineral and royalty interests located in the Permian, DJ, Anadarko and Williston Basins in multiple transactions, which included 7,354 MBoe of additional proved reserves; • well additions, extensions and discoveries of approximately 3,208 MBoe, as 555 gross horizontal well locations were converted from probable, possible and contingent resources to proved, due to continuous activity and delineation of additional zones on our mineral and royalty interests; and • net negative volume revisions of approximately 1,508 MBoe. These revisions were comprised of 536 MBoe of positive revisions attributable to pricing and were offset by negative revisions of 1,100 MBoe attributable to operator development timing as well as 944 MBoe of revisions associated with unit configuration and EUR adjustments to existing proved locations. Changes in proved reserves that occurred during 2017 were primarily due to: • the acquisition of additional mineral and royalty interests located in the Permian, DJ, Anadarko and Williston Basins in multiple transactions, which included 4,820 MBoe of additional proved reserves; • well additions, extensions and discoveries of approximately 3,259 MBoe, as 854 horizontal well locations were converted from probable, possible and contingent resources to proved, due to continuous activity and delineation of additional zones on our mineral and royalty interests; • the divestiture of 1,627 MBoe through one sale of mineral and royalty interests located in the Permian Basin; and • positive volume revisions of approximately 2,581 MBoe attributable primarily to increased recovery in close proximity to our mineral and royalty interests, partially offset by negative revisions of approximately 2,434 MBoe, attributable primarily to operator development timing and revision of existing proved locations. Standardized Measure of Discounted Future Net Cash Flows Guidelines prescribed in FASB’s Accounting Standards Codification (“ASC”) Topic 932 Extractive Industries—Oil and Gas, have been followed for computing a standardized measure of future net cash flows and changes therein relating to estimated proved reserves. Future cash inflows are determined by applying prices and costs, including transportation, quality, and basis differentials, to the year-end estimated quantities of oil, natural gas and NGLs to be produced in the future. The resulting future net cash flows are reduced to present value amounts by applying a ten percent annual discount factor. The assumptions used to compute the standardized measure are those prescribed by the FASB and the SEC. These assumptions do not necessarily reflect Brigham Resources’ expectations of actual revenues to be derived from those reserves, nor their present value. The limitations inherent in the reserve quantity estimation process, as discussed previously, are equally applicable to the standardized measure computations since these reserve quantity estimates are the basis for the valuation process. Reserve estimates are inherently imprecise and estimates of new discoveries and undeveloped locations are more imprecise than estimates of established proved producing oil and gas properties. Accordingly, these estimates are expected to change as future information becomes available. The following summary sets forth the future net cash flows relating to proved oil and gas reserves based on the standardized measure prescribed in ASC Topic 932: For the Year Ended December 31, (In thousands) 2019 2018 2017 Future crude oil, natural gas, and NGL sales $ 1,042,118 $ 1,049,141 $ 595,874 Future severance tax and ad valorem taxes (73,627 ) (70,248 ) (40,225 ) Future income tax expense (143,599 ) (144,421 ) (1,151 ) Future net cash flows 824,892 834,472 554,498 10% annual discount (359,258 ) (391,013 ) (238,030 ) Standardized measure of discounted future net cash flows $ 465,634 $ 443,459 $ 316,468 Standardized measure of discounted future net cash flows attributable to temporary equity $ 186,999 $ — $ — The following prices were used in the determination of standardized measure: For the Year Ended December 31, 2019 2018 2017 Oil (per Bbl) $ 51.01 $ 61.31 $ 47.80 Natural gas (per Mcf) 1.51 2.51 2.74 NGLs (per Bbl) 14.39 23.98 18.56 These prices were based on the 12-month arithmetic average first-of-month West Texas Intermediate (“WTI”) price of oil and Henry Hub price of natural gas. The NGL pricing varied by basin at 13% to 30% of WTI. All prices have been adjusted for transportation, quality, basis differentials and post-production costs. The principal sources of change in the standardized measure of discounted future net cash flows are: For the Year Ended December 31, (In thousands) 2019 2018 2017 Standardized measure of discounted future net cash flows, beginning of the year $ 443,459 $ 316,468 $ 185,752 Changes in the year resulting from: Sales, less production costs (86,492 ) (52,278 ) (26,711 ) Revisions of previous quantity estimates (41,539 ) (22,942 ) 4,894 Extensions, discoveries, and other additions 69,057 71,668 56,511 Net change in prices and production costs (99,660 ) 71,770 30,565 Accretion of discount 51,949 31,713 18,612 Purchase of reserves in place 137,819 148,580 79,190 Divestitures of reserves in place (5,783 ) — (26,742 ) Net change in taxes (5,739 ) (75,369 ) (298 ) Timing differences and other 2,563 (46,151 ) (5,305 ) Standardized measure of discounted future net cash flows, end of the year $ 465,634 $ 443,459 $ 316,468 Capitalized oil and natural gas costs The aggregate amounts of costs capitalized for oil and natural gas producing activities and related aggregate amounts of accumulated depletion follow: For the Year Ended December 31, (In thousands) 2019 2018 2017 Oil and gas properties, at cost, using full cost method of accounting: Not subject to depletion $ 291,664 $ 228,151 $ 168,691 Subject to depletion 449,061 289,851 152,354 Total oil and gas properties, at cost 740,725 518,002 321,045 Less accumulated depreciation, depletion, and amortization (61,103 ) (27,628 ) (14,210 ) Total oil and gas properties, net $ 679,622 $ 490,374 $ 306,835 Costs incurred in oil and natural gas activities The following costs were incurred in oil and natural gas producing activities: For the Year Ended December 31, (In thousands) 2019 2018 2017 Acquisition of properties Unevaluated $ 78,093 $ 59,460 $ 50,224 Evaluated 140,025 137,496 51,862 Total $ 218,118 $ 196,956 $ 102,086 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Brigham Minerals periodically uses commodity derivative instruments to reduce its exposure to commodity price volatility for a portion of its forecasted crude oil and natural gas sales and thereby achieve a more predictable level of cash flows. None of the derivative instruments are designated as hedges. Brigham Minerals does not enter into derivative instruments for speculative or trading purposes. Because the counterparties to Brigham Minerals derivative instruments have investment grade credit ratings, Brigham Minerals believes it does not have significant credit risk and does not anticipate nonperformance from its counterparties. Brigham Minerals continually monitors the credit ratings of its counterparties. Concurrent with the termination of its prior revolving credit facility in July 2018, Brigham Resources posted cash collateral of $1.4 million for its existing WTI fixed price swap contracts. The cash collateral was $1.6 million in May 2019 prior to the termination of the Owl Rock credit facility and was returned to Brigham Resources upon entering into our revolving credit facility, as discussed in “Note 1.—Business and Basis of Presentation.” Brigham Minerals no longer has oil derivative contracts in place as of December 31, 2019 . Prior to December 31, 2019 , we had certain oil swap contracts based on the New York Mercantile Exchange ("NYMEX") futures index. Our derivative instruments were subject to master netting arrangements and are presented on a net basis in our consolidated and combined balance sheets. The following table summarizes the location and fair value of our derivative instruments as of December 31, 2018 (in thousands): Derivative Instruments Balance Sheet Classification Gross Amount Recognized Less Group Amount of Offset Net Amount Recognized (In thousands) As of December 31, 2018 Derivative assets: Commodity swaps Current derivative assets $ 1,057 $ — $ 1,057 The following table summarizes Brigham Minerals' (loss) gain on derivative instruments, net on its consolidated and combined statement of operations for the years ended December 31, 2019 , 2018 and 2017 (in thousands): Years Ended December 31, (In thousands) 2019 2018 2017 Realized gain (loss) $ 470 $ (754 ) $ — Unrealized gain (loss) (1,038 ) 1,178 (121 ) (Loss) gain on derivative instruments, net $ (568 ) $ 424 $ (121 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We classify financial assets and liabilities that are measured and reported at fair value on a recurring basis using a hierarchy based on the inputs used in measuring fair value. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We classify the inputs used to measure fair value into the following hierarchy: • Level 1: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. • Level 2: Inputs based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable and can be corroborated by observable market data. • Level 3: Inputs that reflect management’s best estimates and assumptions of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer would be reported at the beginning of the period in which the change occurs. Assets and Liabilities Measured at Fair Value on a Recurring Basis Brigham Minerals had no financial assets or liabilities that were accounted for at fair value on a recurring basis at December 31, 2019 . Brigham Minerals' financial assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2018 are as follows (in thousands): December 31, 2018 Level 1 Level 2 Level 3 Total Assets-commodity derivative instruments $ — $ 1,057 $ — $ 1,057 Level 1 equity securities represent publicly traded securities valued using quoted market prices. During 2017, Brigham Minerals received shares of publicly traded securities as partial proceeds from the sale of oil and gas properties discussed in "Note 4 - Acquisitions and Divestitures" and classified them as available for sale. As of December 31, 2017, Brigham Minerals had remaining available for sale securities with aggregate cost basis of $3.4 million and unrealized gains of $0.7 million , which is included in accumulated other comprehensive income (“AOCI”). The fair value of available for sale securities held by Brigham Minerals as of December 31, 2017 was $4.1 million and is included in investment in equity securities on the accompanying consolidated and combined balance sheets. During the twelve months ended December 31, 2018 , Brigham Resources had unrealized gains on available for sale securities of $0.1 million . In addition, during the twelve months ended December 31, 2018 , Brigham Resources distributed securities valued at $3.3 million and sold the remaining securities for $0.9 million restricted for payment of tax liabilities resulting from the sale of oil and gas properties. As a result of the distribution and sale of securities, gains of $0.8 million were reclassified out of AOCI and included in gain on sale of equity investments on the accompanying consolidated and combined statement of operations. Our derivative instruments consist of oil swaps carried at fair value. Commodity derivative instruments are valued using a third-party industry-standard pricing model using contract terms and prices and assumptions and inputs that are substantially observable in active markets throughout the full term of the instruments, including forward oil and gas price curves, discount rates and volatility factors. The fair values are also compared to the values provided by the counterparties for reasonableness and are adjusted for the counterparties’ credit quality for derivative assets and our credit quality for derivative liabilities. As such, these derivative contracts are classified within Level 2. Brigham Resources had no transfers into or out of Level 1 and no transfers into or out of Level 2 for the twelve months ended December 31, 2019 , 2018 and 2017 . Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Certain nonfinancial assets and liabilities, such as assets and liabilities acquired in a business combination, are measured at fair value on a nonrecurring basis on the acquisition date and are subject to fair value adjustments under certain circumstances. The inputs used to determine such fair value are primarily based upon internally developed cash flow models and include factors such as estimates of economic reserves, future operating and development costs, future commodity prices and a risk-adjusted discount rates, and are classified within Level 3. Fair Value of Other Financial Instruments The carrying value of cash, trade and other receivables and trade payables are considered to be representative of their respective fair values due to the short-term nature of these instruments. The carrying amount of debt outstanding pursuant to our term loan and our prior revolving credit facility approximates fair value as interest rates on these instruments approximate current market rates. We categorized our long-term debt within Level 2 of the fair value hierarchy. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Prior Revolving Credit Facility Prior to its termination on July 27, 2018, the Minerals Subsidiaries maintained a secured revolving credit facility with a syndicate of financial institutions (the “prior revolving credit facility”), which had been amended periodically. The prior revolving credit facility had a commitment of $150 million , and a borrowing base and outstanding borrowings of $70 million each as of July 27, 2018. Brigham Minerals terminated the prior revolving credit facility on July 27, 2018 with proceeds from the Owl Rock credit facility (as defined below). Additionally, during the third quarter of 2018, Brigham Resources wrote off approximately $0.3 million of unamortized debt issuance costs that were related to the prior revolving credit facility. Owl Rock Credit Facility On July 27, 2018, the prior revolving credit facility was terminated in conjunction with the entry into a new credit facility (the “Owl Rock credit facility”) with Owl Rock Capital Corporation as administrative agent and collateral agent. Brigham Resources used the proceeds from the Owl Rock credit facility to repay the outstanding $70 million of principal under the prior revolving credit facility and to fund mineral and royalty acquisitions. The Owl Rock credit facility was subject to customary fees, guarantees of subsidiaries, restrictions and covenants, including certain restricted payments, and was collateralized by certain oil and natural gas properties of Brigham Resources. The Owl Rock credit facility provided for a $125 million initial term loan, a $75 million delayed draw term loan (“DDTL”) and a $10 million revolving credit facility, bore interest at a rate per annum equal to, at Brigham Resources’ option, (a) the base rate plus 4.50% , or (b) the adjusted LIBOR rate for such interest period (subject to a 1.00% floor) plus 5.50% , matured on July 27, 2024 and required Brigham Resources to maintain compliance with certain financial and collateral coverage ratios. On May 7, 2019, the Owl Rock credit facility was terminated and paid off using a portion of the net proceeds generated from the IPO. As a result of the debt repayment, Brigham Minerals recognized a loss on extinguishment of debt of $6.9 million , which consisted of a $4.0 million write-off of capitalized debt issuance costs, a $2.1 million prepayment fee and legal fees of $0.8 million . Revolving Credit Facility On May 16, 2019 (the “closing date”) Brigham Resources entered into a credit agreement with Wells Fargo Bank, N.A., as administrative agent for the various lenders from time to time party thereto, providing for a new revolving credit facility (our "revolving credit facility”). Our revolving credit facility is guaranteed by Brigham Resources’ domestic subsidiaries and is collateralized by a lien on substantially all of Brigham Resources and its domestic subsidiaries’ assets, including substantially all of their respective royalty and mineral properties. Availability under our revolving credit facility is governed by a borrowing base, which was subject to redetermination on February 1, 2020, and semi-annually thereafter on May 1 and November 1 of each year, commencing with May 1, 2020. In addition, lenders holding two-thirds of the aggregate commitments may request one additional redetermination each year. Brigham Resources can also request one additional redetermination each year, and such other redeterminations as appropriate when significant acquisition opportunities arise. The borrowing base is subject to further adjustments for asset dispositions, material title deficiencies, certain terminations of hedge agreements and issuances of permitted additional indebtedness. Increases to the borrowing base require unanimous approval of the lenders, while decreases only require approval of lenders holding two-thirds of the aggregate commitments at such time. As of December 31, 2019 , the borrowing base was $150.0 million and we had no outstanding borrowings under our revolving credit facility. On February 25, 2020 , the borrowing base on our revolving credit facility was increased to $180.0 million . See "Note.14—Subsequent Events" to the consolidated and combined financial statements of Brigham Minerals included elsewhere in this Annual Report for further discussion. Our revolving credit facility bears interest at a rate per annum equal to, at our option, the adjusted base rate or the adjusted LIBOR rate plus an applicable margin. The applicable margin is based on utilization of our revolving credit facility and ranges from (a) in the case of adjusted base rate loans, 0.750% to 1.750% and (b) in the case of adjusted LIBOR rate loans, 1.750% to 2.750% . Brigham Resources may elect an interest period of one, two, three, six, or if available to all lenders, twelve months. Interest is payable in arrears at the end of each interest period, but no less frequently than quarterly. A commitment fee is payable quarterly in arrears on the daily undrawn available commitments under our revolving credit facility in an amount ranging from 0.375% to 0.500% based on utilization of our revolving credit facility. Our revolving credit facility is subject to other customary fee, interest and expense reimbursement provisions. Our revolving credit facility matures on May 16, 2024. Loans drawn under our revolving credit facility may be prepaid at any time without premium or penalty (other than customary LIBOR breakage) and must be prepaid in the event that exposure exceeds the lesser of the borrowing base and the elected availability at such time. The principal amount of loans that are prepaid are required to be accompanied by accrued and unpaid interest and fees on such amounts. Loans that are prepaid may be reborrowed. In addition, Brigham Resources may permanently reduce or terminate in full the commitments under our revolving credit facility prior to maturity. Any excess exposure resulting from such permanent reduction or termination must be prepaid. Upon the occurrence of an event of default under our revolving credit facility, the administrative agent acting at the direction of the lenders holding a majority of the aggregate commitments at such time may accelerate outstanding loans and terminate all commitments under our revolving credit facility, provided that such acceleration and termination occurs automatically upon the occurrence of a bankruptcy or insolvency event of default. Our revolving credit facility contains customary affirmative and negative covenants, including, without limitation, reporting obligations, restrictions on asset sales, restrictions on additional debt and lien incurrence and restrictions on making distributions (subject only to no default or borrowing base deficiency) and investments. In addition, our revolving credit facility requires us to maintain (a) a current ratio of not less than 1.00 to 1.00 and (b) a ratio of total net funded debt to consolidated EBITDA of not more than 4.00 to 1.00. As of December 31, 2019 , we were in compliance with all covenants in accordance with our revolving credit facility. |
Shareholders' and Members' Equi
Shareholders' and Members' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' and Members' Equity | Shareholders' and Members' Equity Shareholders' Equity Class A Common Stock Brigham Minerals has approximately 34.0 million shares of its Class A common stock outstanding as of December 31, 2019 . Holders of Class A common stock are entitled to one vote per share on all matters to be voted upon by the stockholders and are entitled to ratably receive dividends when and if declared by the Company’s board of directors. Upon liquidation, dissolution, distribution of assets or other winding up, the holders of Class A common stock are entitled to receive ratably the assets available for distribution to the stockholders after payment of liabilities. Class B Common Stock Brigham Minerals has approximately 22.8 million shares of its Class B common stock outstanding as of December 31, 2019 . Holders of the Class B common stock are entitled to one vote per share on all matters to be voted upon by the stockholders. Holders of Class A common stock and Class B common stock generally vote together as a single class on all matters presented to Brigham Minerals’ stockholders for their vote or approval. Holders of Class B common stock generally do not have any right to receive dividends or distributions upon a liquidation or winding up of Brigham Minerals. Earnings per Share Basic earnings per share (“EPS”) measures the performance of an entity over the reporting period. Diluted earnings per share measures the performance of an entity over the reporting period while giving effect to all potentially dilutive common shares that were outstanding during the period. Brigham Minerals uses the “if-converted” method to determine the potential dilutive effect of exchanges of outstanding shares of Class B common stock (and corresponding Brigham LLC Units), and the treasury stock method to determine the potential dilutive effect of vesting of its outstanding RSAs, RSUs, PSUs and unvested Incentive Units. Brigham Minerals does not use the two-class method because the Class B common stock and the unvested share-based awards are nonparticipating securities. For the year ended December 31, 2019 , the Class B common stock, the Incentive Units, RSAs and RSUs were not recognized in dilutive EPS calculations as the effect would have been antidilutive. There were no shares of Class A or Class B common stock outstanding for the years ended December 31, 2018 and 2017 , therefore no earnings per share information has been presented for those periods. For the year ended December 31, 2019 , Brigham Minerals’ EPS calculation includes only its share of net income for the period subsequent to the IPO, and omits income or loss prior to the IPO. In addition, the basic weighted average shares outstanding calculation is based on the actual days in which the shares were outstanding from the IPO through December 31, 2019 . The following table reflects the allocation of net income (loss) to common stockholders and EPS computations for the period indicated based on a weighted average number of common stock outstanding for the period: Years Ended December 31, (In thousands, except per share data) 2019 2018 2017 Basic EPS Numerator: Basic net income attributable to Brigham Minerals, Inc. shareholders $ 6,901 $ — $ — Less: net income attributable to Brigham Minerals, Inc. shareholders pre-IPO (848 ) — — Basic net income attributable to Brigham Minerals, Inc. shareholders post-IPO (1) 6,053 — — Denominator: Basic weighted average shares outstanding (1) 22,870 — — Basic EPS attributable to Brigham Minerals, Inc. shareholders $ 0.26 $ — $ — Diluted EPS Numerator: Basic net income attributable to Brigham Minerals, Inc. shareholders post-IPO (1) 6,053 — — Diluted net income attributable to Brigham Minerals, Inc. shareholders 6,053 — — Denominator: Basic weighted average shares outstanding (1) 22,870 — — Effect of dilutive securities: Diluted weighted average shares outstanding 22,870 — — Diluted EPS attributable to Brigham Minerals, Inc. shareholders $ 0.26 $ — $ — (1) - Represents earnings per share of Class A common stock and weighted average shares of Class A common stock for the period from April 17, 2019 through December 31, 2019, the period following the IPO. As of December 31, 2019 , there were 753,546 shares related to PSUs (based on target), that could vest in the future dependent on predetermined performance goals. These units were not included in the computation of EPS for the year ended December 31, 2019 , because the performance goals had not been met, assuming the end of the reporting period was the end of the contingency period. Members' Equity Series A Units On April 5, 2013, Brigham Resources received subscriptions to purchase 64,840,000 Series A Units at a price of $10 per unit. The Series A Units may be purchased within a five -year period from April 5, 2013 to April 5, 2018. Brigham Resources’ management had the right, subject to the approval of its Board of Directors and certain of its investors, to send notice to the Series A Unit holders specifying the need for additional capital. All outstanding Series A Units were sold prior to December 31, 2015. Series A Unit holders are entitled to one vote per share on voting matters and have certain rights with respect to distributions declared by Brigham Resources’ Board of Directors pursuant to a distribution waterfall set forth in the Brigham Resources LLC Agreement. The Series A Units have a liquidation preference equal to total invested capital, plus a 7% cumulative return, compounded daily. Series A-M Units Brigham Resources has authorized 460,000 Series A-M Units for issuance at a price of $10 per unit. On April 5, 2013, 160,000 Series A-M Units were issued in connection with the formation of Brigham Resources. The remaining 300,000 Series A-M Units were available for issuance to a related party if certain capital call funding thresholds were met (the “Contingent A-M Units”) and subject to achievement of certain time-based vesting conditions. During 2014, all 300,000 Contingent A-M Units were issued, and as of December 31, 2017, 100% of the Series A-M Units were vested. Series A-M Unit holders have no voting rights and have certain rights with respect to distributions declared by Brigham Resources’ Board of Directors pursuant to a distribution waterfall set forth in the Brigham Resources LLC Agreement. The Series A-M Units have a liquidation preference equal to the total invested capital, plus a 7% cumulative return, compounded daily. Series A-Z Units On May 8, 2015, Brigham Resources received subscriptions to purchase 41,176,471 Series A-Z Units at a price of $8.50 per unit. The Series A-Z Units were available to be issued at any time between May 8, 2015 and April 5, 2018. Brigham Resources’ management had the right, subject to the approval of its Board of Directors and certain of its investors, to send notice to the Series A-Z Unit holders specifying the need for additional capital (a “Series A-Z Capital Call”). During the years ended December 31, 2018 and 2017, Brigham Resources issued Series A-Z Capital Calls for gross proceeds of $45,999,995 , representing the sale of 5,411,764 Series A-Z Units, and of $37,000,002 , representing the sale of 4,352,941 Series A-Z Units, respectively. Series A-Z Unit holders are entitled to one vote per share on voting matters and have certain rights with respect to distributions declared by Brigham Resources’ Board of Directors pursuant to a distribution waterfall set forth in the Brigham Resources LLC Agreement. The Series A-Z Units have a liquidation preference equal to the total invested capital, plus a 7% cumulative return, compounded daily. In connection with the IPO, all of the outstanding membership interests in Brigham Resources were converted into a single class of common units in Brigham Resources and Brigham Resources became a wholly-owned subsidiary. Restricted Units Brigham Resources has authorized 120,000 restricted incentive units (“Restricted Units”) for issuance to management, independent directors, employees and consultants. The Restricted Units vest 20% upon issuance and 20% on each of the four anniversary dates following the date of issuance. The Restricted Units participate in certain distribution events following the sale, merger or other transaction involving Brigham Resources or its assets only after certain return thresholds are met by the holders of Series A Units, Series A-Z Units and Series A-M Units. There are eight classes of Restricted Units, including Series M-1, Series M-2, Series M-3 and Series M-4 (collectively, “Series M Units”) and Series Z-1, Series Z-2, Series Z-3 and Series Z-4 (collectively, “Series Z Units”). Brigham Resources is authorized to issue 10,000 units of each class of Series M Units and Series Z Units. A summary of the Restricted Units issued and outstanding is as follows: Series M Units M-1 M-2 M-3 M-4 Total Beginning balance 7,520 7,520 7,520 7,520 30,080 2017 issuances — — — — — 2017 forfeitures — — — — — Outstanding at December 31, 2017 7,520 7,520 7,520 7,520 30,080 2018 issuances 1,030 1,030 1,030 1,030 4,120 2018 forfeitures — — — — — Outstanding at December 31, 2018 8,550 8,550 8,550 8,550 34,200 Series Z Units Z-1 Z-2 Z-3 Z-4 Total Beginning balance 4,328 4,328 4,328 4,328 17,312 2017 issuances — — — — — 2017 forfeitures (15 ) (15 ) (15 ) (15 ) (60 ) Outstanding at December 31, 2017 4,313 4,313 4,313 4,313 17,252 2018 issuances 485 485 485 485 1,940 2018 forfeitures (105 ) (105 ) (105 ) (105 ) (420 ) Outstanding at December 31, 2018 4,693 4,693 4,693 4,693 18,772 As of December 31, 2018, 7,726 of each class of Series M Units ( 30,904 total) and 3,808 of each class of Series Z Units ( 15,232 total) had vested. As of December 31, 2017, 7,520 of each class of Series M Units ( 30,080 total) and 2,596 of each class of Series Z Units ( 10,386 total) had vested. The Series M-1 Units were issued with a threshold value of $0.00 ; the Series M-2 Units were issued with a threshold value of $2.25 ; the Series M-3 Units were issued with a threshold value of $6.50 ; and the Series M-4 Units were issued with a threshold value of $14.00 . The Series Z-1 Units were issued with a threshold value of $0.00 ; the Series Z-2 Units were issued with a threshold value of $1.91 ; the Series Z-3 Units were issued with a threshold value of $5.53 ; and the Series Z-4 Units were issued with a threshold value of $11.90 . In connection with the 2018 corporate reorganizations and the corporate reorganization consummated in connection with Brigham Minerals’ IPO, these Restricted Units were converted into Incentive Units. See "Note 10.—Share-Based Compensation— LLC Incentive Units" for further discussion of this transaction . |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation LLC Incentive Units As part of the Second Amended and Restated Limited Liability Company Agreement of Brigham Resources, LLC dated May 8, 2015, Brigham Resources authorized 120,000 restricted incentive units for issuance to management, independent directors, employees, and consultants (such incentive units, as converted as described below, the “Incentive Units”). Brigham Resources granted Incentive Units in April 2013 and September 2015 and 2018. In connection with the 2018 corporate reorganizations and the corporate reorganization consummated in connection with Brigham Minerals’ IPO (collectively with the 2018 corporate reorganizations, the “corporate reorganization”), these Incentive Units were converted into units in Brigham Equity Holdings, LLC (“Brigham Equity Holdings”) with equivalent rights, responsibilities, and preferences. The Incentive Units are subject to vesting as follows: 20% of the Incentive Units were vested on the date of grant and 20% of the Incentive Units vest on each anniversary of the date of grant if the holder remains continuously employed by Brigham Resources or its affiliates through the applicable vesting date. Upon vesting of the Incentive Units, holders of the Incentive Units receive one share of Brigham Minerals’ Class B common stock and one Brigham LLC Unit for each vested Incentive Unit. In connection with the completion of the IPO, Brigham LLC and Brigham Equity Holdings discontinued granting new Incentive Units; however Brigham Equity Holdings will continue to administer the existing awards that remain outstanding. As discussed in “Note 9.—Temporary Equity,” participants may receive one share of Brigham Minerals’ Class A common stock in exchange for one share of Class B common stock and one Brigham LLC Unit, or cash at the option of Brigham Minerals. Brigham Minerals accounts for the Incentive Units as compensation cost measured at the fair value of the award on the date of grant. No compensation expense was recognized prior to the IPO because the IPO was not considered probable. A summary of the Incentive Unit activity for the year ended December 31, 2019 is as follows: Incentive Units (In thousands) Number of Incentive Units Grant-date Fair Value Outstanding—January 1, 2019 3,272 $ 1.49 Vested (3,060 ) $ 0.89 Outstanding—December 31, 2019 212 $ 10.04 A summary of the Incentive Unit activity for the year ended December 31, 2018 is as follows: Incentive Units (In thousands) Number of Incentive Units Grant-date Fair Value Outstanding—January 1, 2018 2,918 $ 0.45 Granted 354 10.04 Vested — — Outstanding—December 31, 2018 3,272 $ 1.49 Brigham LLC used a third-party valuation specialist to assist management in its estimation of the grant-date fair value of the Incentive Units on the respective grant dates during 2013, 2015 and 2018. Brigham LLC used the Black-Scholes option pricing valuation model with the following weighted-average assumptions Incentive Units 2018 Awards 2015 Awards 2013 Awards Expected volatility 28 % 33 % 40 % Expected dividend yield — — — Expected term (in years) 0.7 3.7 6.2 Risk-free interest rates 2.45 % 1.07 % 0.94 % Weighted-average grant date fair value per Incentive Unit $10.04 $0.03 $1.51 Long Term Incentive Plan In connection with the IPO, Brigham Minerals adopted the Brigham Minerals, Inc. 2019 Long Term Incentive Plan (“LTIP”) for employees, consultants and directors who perform services for Brigham Minerals. The LTIP provides for issuance of awards based on shares of Class A common stock. Brigham Minerals has issued restricted stock awards ("RSAs"), restricted stock units ("RSUs") and performance-based vesting units ("PSUs") under the LTIP. The shares to be delivered under the LTIP shall be made available from (i) authorized but unissued shares, (ii) shares held as treasury stock or (iii) previously issued shares reacquired by Brigham Minerals including shares purchased on the open market. A total of 5,999,600 shares of Class A common stock have been authorized for issuance under the LTIP. At December 31, 2019 , 4,416,069 shares of Class A common stock remained available for future grants. Currently, all outstanding RSAs, RSUs and PSUs granted under the LTIP are entitled to receive dividends (in the case of RSAs) or have dividend equivalent rights (“DERs”), which entitle holders of RSUs and PSUs to the same dividend value per share as holders of the Company’s Class A common stock. Such dividends and DERs are subject to the same vesting and other terms and conditions as the corresponding unvested RSAs, RSUs, and PSUs. Dividends and DERs are accumulated and paid when the underlying shares vest. The fair value of the RSA awards granted with the right to receive dividends and RSU awards granted with the right to receive DERs are generally based on the trading price of the Company’s Class A common stock as of the date of grant. Brigham Minerals accounts for the awards granted under the LTIP as compensation cost measured at the fair value of the award on the date of grant. RSAs are grants of shares of Class A common stock subject to a risk of forfeiture and restrictions on transferability. The share-based compensation expense of such RSAs was determined using the closing price of Class A common stock on April 23, 2019, the date of grant, of $21.25 . On April 23, 2019, 312,189 RSAs were granted and 152,742 RSAs vested immediately. The remaining unvested RSAs generally vest in one-third increments on each of April 23, 2020, 2021 and 2022 and are subject to restrictions on transfer and are generally subject to a risk of forfeiture if the award recipient ceases providing services to Brigham Minerals prior to the lapse of such restrictions. During the year ended December 31, 2019 , 10,991 RSAs were forfeited. Brigham Minerals accounts for forfeitures as they occur. RSUs represent the right to receive shares of Class A common stock at the end of the vesting period in an amount equal to the number of RSUs that vest. The RSUs that have been granted generally vest in one-third increments on each of the first three anniversaries of the grant date and are subject to restrictions on transfer and are generally subject to a risk of forfeiture if the award recipient ceases providing services to Brigham Minerals prior to the date the award vests. The share-based compensation expense of such RSUs was determined using the closing price on April 23, 2019, the date of grant, of $21.25 applied to the total number of 598,891 RSUs granted. Brigham Minerals accounts for forfeitures as they occur. During the year ended December 31, 2019 , 183,082 RSUs vested and no RSUs were forfeited. Brigham Minerals withheld 59,111 RSUs to satisfy employee tax withholding obligations related to the RSUs that vested in 2019 . PSUs represent the right to receive shares of Class A common stock on at the end of a specified performance period. 753,546 PSUs (based on target) were granted on April 23, 2019, with a performance period that ends on December 31, 2021. The terms and conditions of the PSUs allow for vesting of the awards ranging between 0% (or forfeiture) and 200% of target. The vesting level is calculated based on the actual total stockholder return achieved during the performance period including projected dividends. The fair value of such PSUs was determined using a Monte Carlo simulation and will be recognized over the applicable performance period. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award to calculate the fair value of the award. Expected volatilities in the model were estimated using a historical period consistent with the performance period of approximately three years. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the expected life of the grant. Using the assumptions in the table below, Brigham Minerals estimated the fair value of PSUs at the date of grant to be $20.36 . Performance-Based Restricted Stock Units Expected dividend yield 8.1 % Risk-free interest rate 2.3 % Volatility 30 % The number of PSUs that will be earned is estimated quarterly and as of December 31, 2019 , we estimated that 451,933 PSUs will be earned. No PSUs were forfeited or vested during the year ended December 31, 2019 . Share-Based Compensation Expense Share-based compensation expense is included in general and administrative expense in the Company’s consolidated and combined statement of operations included within this Annual Report. Share-based compensation cost recorded for each type of share-based compensation award, was as follows for the periods indicated: Years Ended December 31, (In thousands) 2019 2018 2017 Incentive Units (1) (3) $ 2,904 $ — $ — RSAs (2) (3) 3,972 — — RSUs (3) 4,630 — — PSUs (4) 2,361 — — Capitalized share-based compensation (5) (3,818 ) — — Total share-based compensation expense $ 10,049 $ — $ — (1) Includes a cumulative effect adjustment to share-based compensation cost of $2.0 million pertaining to the period from the grant date through the IPO date. No compensation expense was recorded prior to the IPO because the IPO was not considered probable. (2) Includes $3.2 million recorded at grant date of April 23, 2019, associated with 152,742 RSAs, which vested immediately. (3) Share-based compensation expense relating to Incentive Units, restricted stock awards and time-based restricted stock units with ratable vesting is recognized on a straight-line basis over the requisite service period for the entire award. (4) Share-based compensation expense relating to PSUs with cliff-vesting is recognized on a straight-line basis over the performance period for the entire award. (5) During the year ended December 31, 2019 , Brigham Minerals capitalized $3.8 million of the share-based compensation to unevaluated property on its balance sheet. In addition to the time-based vesting conditions described above, the Incentive Units could be earned upon the completion of an initial public offering or another liquidity event, considered a performance condition, which was not deemed probable and therefore no compensation expense was recognized prior to December 31, 2018. Future Share-Based Compensation Expense The following table reflects the future share-based compensation expense to be recorded for the share-based compensation awards that were outstanding at December 31, 2019 , a portion of which will be capitalized: (In thousands) Incentive Units RSAs RSUs PSUs Total 2020 $ 712 $ 1,052 $ 4,217 $ 3,419 $ 9,400 2021 712 1,052 3,890 3,419 9,073 2022 534 326 — — 860 Total $ 1,958 $ 2,430 $ 8,107 $ 6,838 $ 19,333 |
Temporary Equity
Temporary Equity | 12 Months Ended |
Dec. 31, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Temporary Equity | Temporary Equity Temporary equity represents the Original Owners’ 40.2% ownership of Brigham LLC, as of December 31, 2019 . In addition, the Original Owners own all of our Class B common stock. Each share of Class B common stock does not have any economic rights but entitles its holder to one vote on all matters to be voted on by our stockholders, generally and a redemption right into Class A shares. As discussed in “Note 1.— Business and Basis of Presentation,” following the IPO: • Each holder of Brigham LLC Units following the restructuring, other than Brigham Minerals and its subsidiaries, received a number of shares of Class B common stock equal to the number of Brigham LLC Units held by such Brigham Unit Holder following the IPO; • Brigham Minerals contributed, directly or indirectly, the net proceeds of the IPO to Brigham LLC in exchange for an additional number of Brigham LLC Units such that Brigham Minerals holds, directly or indirectly, a total number of Brigham LLC Units equal to the number of shares of Class A common stock outstanding following the IPO; and • Under the Amended and Restated Limited Liability Company Agreement of Brigham LLC (the “Brigham LLC Agreement”), each Brigham Unit Holder, subject to certain limitations, has a right (the “Redemption Right”) to cause Brigham LLC to acquire all or a portion of its Brigham LLC Units for, at Brigham LLC’s election, (i) shares of our Class A common stock at a redemption ratio of one share of Class A common stock for each Brigham LLC Unit redeemed, subject to conversion rate adjustments for stock splits, stock dividends and reclassification and other similar transactions or (ii) an equivalent amount of cash. We will determine whether to issue shares of Class A common stock or cash based on facts in existence at the time of the decision, which we expect would include the relative value of the Class A common stock (including trading prices for the Class A common stock at the time), the cash purchase price, the availability of other sources of liquidity (such as an issuance of preferred stock) to acquire the Brigham LLC Units and alternative uses for such cash. Alternatively, upon the exercise of the Redemption Right, Brigham Minerals (instead of Brigham LLC) will have a call right to, for administrative convenience, acquire each tendered Brigham LLC Unit directly from the redeeming Brigham Unit Holder for, at its election, (x) one share of Class A common stock or (y) an equivalent amount of cash (the “Call Right”). The decision to make a cash payment upon a Brigham Unit Holder’s exercise of its Redemption Right is required to be made by the Company’s directors who are independent under Section 10A-3 of the Securities Act and do not hold any Brigham LLC Units subject to such redemption. In connection with any redemption of Brigham LLC Units pursuant to the Redemption Right or acquisition pursuant to our Call Right, the corresponding number of shares of Class B common stock will be cancelled. Class B common stock is classified as temporary equity in the consolidated and combined balance sheet as, pursuant to the Brigham LLC Agreement, the Redemption Rights of each Brigham Unit Holder for either shares of Class A common stock or an equivalent amount of cash is not solely within Brigham Minerals’ control. This is due to the majority of the members of the board of directors are holders of the Class B common stock, which allows the holders of Class B common stock to elect the members of the board of directors of the Company, including those directors that determine whether to make a cash payment upon a Brigham Unit Holder’s exercise of its Redemption Right. Temporary equity is recorded at the greater of the book value or redemption amount. From the date of the IPO through December 31, 2019 , the Company recorded adjustments to the value of temporary equity as presented in the table below: (In thousands) Temporary Equity Adjustments Balance - April 17, 2019 (1) $ 518,000 Conversion of Class B shares to Class A shares (104,390 ) Net income attribution 9,646 Distribution to holders of temporary equity (20,321 ) Adjustment of temporary equity to redemption amount (2) 51,572 Balance - December 31, 2019 $ 454,507 (1) Based on 28,777,802 shares of Class B common stock outstanding and Class A share price of $18.00 . (2) Based on 22,847,045 shares of Class B common stock outstanding and Class A share 10-day VWAP of $19.89 at December 31, 2019 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are calculated by applying existing tax laws and the rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Brigham Minerals periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets, including net operating losses. In making this determination, Brigham Minerals considers all available positive and negative evidence and makes certain assumptions. Brigham Minerals considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends and its outlook for future years. Brigham Minerals did not record a valuation allowance at December 31, 2019 and 2018 . Brigham Minerals has evaluated all tax positions for which the statute of limitations remains open and believes that the material positions taken would more likely than not be sustained by examination. Therefore, at December 31, 2019, Brigham Minerals had not established any reserves for, nor recorded any unrecognized benefits related to, uncertain tax positions. Brigham Resources, the Company’s predecessor, is a limited liability company that is not subject to U.S. federal income tax, but is subject to the Texas Margin Tax and state income taxes in Oklahoma, North Dakota, and Colorado. As part of the corporate reorganization, certain entities affiliated with Warburg Pincus contributed all of their respective interests in certain wholly owned “blocker” entities through which they held interests in Brigham Resources to Brigham Minerals in exchange for all of the outstanding shares of common stock of Brigham Minerals. On the date of the corporate reorganization, a corresponding “first day” tax charge of approximately $3.1 million was recorded to establish a net deferred tax liability for differences between the tax and book basis of the investment in Brigham Resources. The offset of the deferred tax liability was recorded to additional paid-in-capital. Brigham Minerals is a corporation and is subject to U.S. federal income tax. In April 2019, Brigham Minerals completed the IPO of 16,675,000 shares of Class A common stock at a price to the public of $18.00 per share. The tax implications of the July 2018 restructuring, initial public IPO and the tax impact of the Company’s status as a taxable corporation subject to U.S. federal income tax have been reflected in the accompanying consolidated and combined financial statements. On IPO date, a corresponding tax benefit of approximately $13.7 million was recorded associated with the differences between the tax and book basis of the investment in Brigham Resources, LLC. The offset of the deferred tax asset was recorded to additional paid-in capital. Brigham Minerals completed the December 2019 Offering of 12,650,000 shares of its Class A common stock, including 6,000,000 shares issued and sold by Brigham Minerals and an aggregate of 6,650,000 shares sold by certain shareholders of the Company, of which 5,496,813 represents shares issued upon redemption of an equivalent number of their Brigham LLC units, at a price to the public of $18.10 per share. After the December 2019 Offering and redemption, a corresponding tax benefit of approximately $9.5 million was recorded associated with the differences between the tax and book basis of the investment in Brigham Resources, LLC. The offset of the deferred tax asset was recorded to additional paid-in capital. The effective combined U.S. federal and state income tax rate for the year ended December 31, 2019 was 11.0% . During the twelve months ended December 31, 2019 , 2018 and 2017 , the Company recognized income tax expense of $2.7 million , $0.3 million and $1.0 million , respectively. Total income tax expense for the twelve months ended December 31, 2019 and 2018 differed from amounts computed by applying the U.S. federal statutory tax rate of 21% due to the impact of the temporary equity, net income attributable to Predecessor, state taxes (net of the anticipated federal benefit), and percentage depletion in excess of basis. Years Ended December 31, (In thousands) 2019 2018 2017 State Income Tax Current (benefit)/expense $ 692 $ (23 ) $ 713 Deferred (benefit)/expense 63 (138 ) 295 Federal Income Tax Current expense 1,322 114 — Deferred expense 602 374 — Totals: $ 2,679 $ 327 $ 1,008 Total current income taxes $ 2,014 $ 91 $ 713 Total deferred income taxes 665 236 295 Totals: $ 2,679 $ 327 $ 1,008 The following table reconciles the income tax provision with income tax expense at the federal statutory rate for the periods indicated: Years Ended December 31, (In thousands) 2019 2018 2017 Income before income taxes $ 24,318 $ 33,142 $ 116,620 Less: income before income taxes attributable to predecessor (5,118 ) (30,805 ) (116,620 ) Less: income before income taxes attributable to temporary equity (9,858 ) — — Income before income taxes attributable to shareholders $ 9,342 $ 2,337 $ — Income tax at the federal statutory rate $ 1,962 $ 491 $ — State income taxes, net of federal benefit 717 (150 ) 1,008 Percentage depletion in excess of basis — (14 ) — Total income tax provision $ 2,679 $ 327 $ 1,008 Brigham Minerals had $18.8 million recorded as deferred tax asset as of December 31, 2019 , and $3.7 million recorded as deferred tax liability at December 31, 2018 . The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were are follows: Years Ended December 31, (In thousands) 2019 2018 Deferred tax assets: Investment in subsidiary $ 19,021 $ — Total deferred tax assets: $ 19,021 $ — Deferred tax liabilities: Oil and gas properties (198 ) (208 ) Investment in subsidiary — (3,476 ) Total deferred tax liabilities $ (198 ) $ (3,684 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Brigham Minerals leases office space under operating leases. Rent expense for the years ended December 31, 2019 , 2018 , and 2017 was $0.6 million , $0.3 million , and $0.2 million , respectively. Future minimum lease commitments under noncancelable operating leases at December 31, 2019 are presented below (in thousands): Year Commitment 2020 $ 1,000 2021 1,345 2022 1,419 2023 1,492 2024 1,566 2025 and Thereafter $ 4,312 Total $ 11,134 Contingencies Brigham Minerals may, from time to time, be a party to certain lawsuits and claims arising in the ordinary course of business. The outcome of such lawsuits and claims cannot be estimated with certainty and management may not be able to estimate the range of possible losses. Brigham Minerals records reserves for contingencies when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated. Brigham Minerals had no reserves for contingencies at December 31, 2019 and December 31, 2018 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related-Party Transactions Brigham Land Management (“BLM”) occasionally provides us with land brokerage services. The services are provided at market prices and are periodically verified by third-party quotes. BLM is owned by Vince Brigham, an advisor to us and brother of Ben M. Brigham, founder and Executive Chairman of the Board. For the years ended December 31, 2019 , 2018 and 2017 , the amounts paid to BLM for land brokerage services were $0.1 million , $0.1 million and $0.6 million , respectively. At December 31, 2019 , 2018 , and 2017 , the liabilities recorded for services performed by BLM during the respective periods were immaterial. Brigham Exploration Company, partially owned by Ben M. Brigham, on occasion leases some of our acreage at market rates. In connection with such leases, we received $0.4 million and $0.6 million for the year ended December 31, 2019 and 2017 . There were no payments for the year ended December 31, 2018 . During the year ended December 31, 2018 , Brigham Resources borrowed $7.0 million from Brigham Operating, at an interest rate of 7.00% and repaid the loan prior to December 31, 2018 . |
Quarterly Financial Information
Quarterly Financial Information-Unaudited Quarterly Financial Information-Unaudited | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information-Unaudited | Quarterly Financial Information-Unaudited Summarized quarterly financial data for the years ended December 31, 2019 and 2018 are presented in the following tables. During the periods presented below, earnings per share information is not available due to no shares being recognized for accounting purposes for periods prior to the IPO. Three Months Ended (In thousands, except per share amount) March 31, June 30, September 30, December 31, 2019 Total revenues $ 18,265 $ 24,529 $ 25,107 $ 33,614 Income from operations 8,707 5,034 9,115 14,362 Net income 4,036 (3,207 ) 8,464 12,346 Net income attributable to Brigham Minerals (2) 534 (1,856 ) 3,146 5,077 Basic EPS attributable to Brigham Minerals, Inc. shareholders - (1) — (0.12 ) 0.14 0.20 Diluted EPS attributable to Brigham Minerals, Inc. shareholders - (1) — (0.12 ) 0.14 0.20 2018 Total revenues $ 14,083 $ 16,889 $ 18,701 $ 17,591 Income from operations 8,219 10,564 11,716 8,732 Net income 8,197 9,351 8,153 7,114 Net income attributable to Brigham Minerals (2) — — 891 948 Basic EPS attributable to Brigham Minerals, Inc. shareholders - (1) — — — — Diluted EPS attributable to Brigham Minerals, Inc. shareholders - (1) — — — — (1) - Represents earnings per share of Class A common stock and Class B common stock and weighted average shares of Class A common stock and Class B common stock for the period from April 17, 2019 through December 31, 2019, the period following the IPO. See "Note 8.— Shareholders' and Members' Equity" for further discussion of this transaction. (2) - Represents net income attributable to Brigham Minerals for the period starting with the completion of the July 2018 restructuring. See "Note 1.—Business and Basis of Presentation" for further discussion of this transaction. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 27, 2020 , Brigham Minerals declared a dividend of $0.38 per Class A common stock payable on March 19, 2020 , to unitholders of record at the close of business on March 12, 2020 . On February 25, 2020 , the borrowing base on our revolving credit facility was increased to $180.0 million . |
Reserve and Related Financial D
Reserve and Related Financial Data (SMOG) - Unaudited | 12 Months Ended |
Dec. 31, 2019 | |
Extractive Industries [Abstract] | |
Reserve and Related Financial Data (SMOG) - Unaudited | Acquisitions and Divestitures In 2019, Brigham Minerals adopted ASU 2017-01, Clarifying the Definition of a Business, using a prospective approach. This guidance assists in determining whether a transaction should be accounted for as an acquisition of assets or as a business. This ASU provides a screen that when substantially all of the fair value of the gross assets acquired, or disposed of, are concentrated in a single identifiable asset, or a group of similar identifiable assets, the set will not be considered a business. If the screen is not met, a set must include an input and a substantive process that together significantly contribute to the ability to create an output to be considered a business. The adoption of the new standard did not have a material impact on the consolidated and combined financial statements. During the years ended December 31, 2019 and 2018 , Brigham Minerals entered into a number of individually insignificant acquisitions of mineral and royalty interests from various sellers in Texas, Oklahoma, Colorado, New Mexico, and North Dakota, as reflected in the table below. The change in the oil and natural gas property balance is comprised of payments for acquisitions of minerals, land brokerage costs and capitalized general and administrative expenses that were funded with borrowings under its Owl Rock credit facility, our revolving credit facility and proceeds from the IPO. Assets Acquired Cash Consideration Paid (In thousands) Evaluated Unevaluated Twelve months ended December 31, 2019 $ 140,025 $ 78,093 $ 218,118 Twelve months ended December 31, 2018 $ 115,589 $ 81,367 $ 196,956 In August 2017, Brigham Minerals acquired certain mineral and royalty interests in the Delaware Basin for $29.2 million . Brigham Minerals funded the acquisition with capital contributions. The allocation of the purchase price was $20.5 million to unevaluated properties and $8.7 million to evaluated properties. In addition, during 2017, Brigham Minerals entered into a number of individually insignificant acquisitions. The change in the oil and natural gas property balance is comprised of individually insignificant payments for acquisitions of minerals, land brokerage costs and capitalized general and administrative capital expenditures. On February 28, 2017, Brigham Operating and Brigham Resources Midstream, LLC, wholly owned subsidiaries of Brigham Resources, closed on the sale of substantially all of their Southern Delaware Basin leasehold and related assets, including certain mineral and royalty interests owned by Brigham Resources, to a third-party public entity. The proceeds for mineral and royalty interests represented $156.7 million of the net adjusted sales price and consisted of cash of $111.1 million and shares valued at $45.6 million The mineral and royalty interests sold represented approximately 12% in aggregate of Brigham Minerals’ total proved reserves as of December 31, 2016. As a result of the sale, the relationship between capitalized costs and proved reserves was altered significantly and Brigham Minerals recorded a gain of $94.6 million . Reserve and Related Financial Data (SMOG) -Unaudited Oil and Natural Gas Reserves Proved reserves represent quantities of oil, natural gas and NGLs which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be recoverable in the future from known reservoirs under existing economic conditions, operating methods and government regulations. Proved developed reserves are proved reserves which can be expected to be recovered through existing wells with existing equipment, infrastructure and operating methods. Proved reserves were estimated in accordance with guidelines established by the SEC, which require that reserve estimates be prepared under existing economic and operating conditions based upon the 12-month unweighted average of the first-day-of-the-month prices. The reserves at December 31, 2019 and December 31, 2018 presented below were audited by CG&A and the reserves at December 31, 2017 presented below were prepared by CG&A. Estimates of proved reserves are inherently imprecise and are continually subject to revision based on production history, results of additional exploration and development, price changes and other factors. The reserves are located in various fields in Texas, New Mexico, Oklahoma, Colorado, Wyoming, North Dakota, Montana and Pennsylvania. All of the proved reserves are located in the continental United States. Crude Oil (MBbl) Natural Gas (Mmcf) NGL (MBbl) Total (MBoe) Proved reserve quantities, December 31, 2016 7,174 22,991 2,356 13,363 Sales of minerals-in-place (1,291 ) (815 ) (200 ) (1,627 ) Extensions and discoveries 1,548 6,012 709 3,259 Acquisitions 2,141 9,380 1,116 4,820 Revisions of previous estimates (394 ) 2,601 108 147 Production (454 ) (1,768 ) (109 ) (858 ) Proved reserve quantities, December 31, 2017 8,724 38,401 3,980 19,104 Sales of minerals-in-place — — — — Extensions and discoveries 1,765 5,285 562 3,208 Acquisitions 3,669 13,862 1,374 7,354 Revisions of previous estimates (390 ) (3,245 ) (577 ) (1,508 ) Production (777 ) (2,507 ) (222 ) (1,417 ) Proved reserve quantities, December 31, 2018 12,991 51,796 5,117 26,741 Sales of minerals-in-place (182 ) (697 ) (110 ) (409 ) Extensions and discoveries 1,997 7,780 817 4,110 Acquisitions 4,256 13,053 1,218 7,651 Revisions of previous estimates (586 ) (5,495 ) (797 ) (2,299 ) Production (1,515 ) (4,707 ) (407 ) (2,706 ) Proved reserve quantities, December 31, 2019 16,961 61,730 5,838 33,088 Proved reserve quantities at December 31, 2019 attributable to temporary equity 6,812 24,792 2,345 13,289 Proved developed reserve quantities: December 31, 2017 2,804 13,028 1,185 6,160 December 31, 2018 6,067 21,735 1,898 11,588 December 31, 2019 9,924 33,232 2,494 17,957 Proved developed reserves at December 31, 2019 attributable to temporary equity 3,986 13,346 1,002 7,212 Proved undeveloped reserve quantities: December 31, 2017 5,920 25,373 2,795 12,944 December 31, 2018 6,924 30,061 3,219 15,153 December 31, 2019 7,037 28,498 3,344 15,131 Proved undeveloped reserves at December 31, 2019 attributable to temporary equity 2,826 11,445 1,343 6,077 Changes in proved reserves that occurred during 2019 were primarily due to: • the acquisition of additional mineral interests located in the Permian, Anadarko, DJ and Williston Basins in multiple transactions, which included 7,242 MBoe of additional proved reserves which is comprised of 7,651 MBoe of acquired proved reserves and divestiture of 409 MBoe of proved reserves within the year; • well additions extensions and discoveries of approximately 4,110 MBoe, as approximately 900 gross horizontal well locations were converted from probable, possible and contingent resources to proved, due to continuous activity and delineation of additional zones on our mineral and royalty interests; and • net volume revisions of approximately 2,299 MBoe. These revisions were comprised of 902 MBoe of negative revisions attributable to pricing as well as approximately 1,397 MBoe attributable to operator development timing, unit configuration and EUR adjustments to existing proved locations. Changes in proved reserves that occurred during 2018 were primarily due to: • the acquisition of additional mineral and royalty interests located in the Permian, DJ, Anadarko and Williston Basins in multiple transactions, which included 7,354 MBoe of additional proved reserves; • well additions, extensions and discoveries of approximately 3,208 MBoe, as 555 gross horizontal well locations were converted from probable, possible and contingent resources to proved, due to continuous activity and delineation of additional zones on our mineral and royalty interests; and • net negative volume revisions of approximately 1,508 MBoe. These revisions were comprised of 536 MBoe of positive revisions attributable to pricing and were offset by negative revisions of 1,100 MBoe attributable to operator development timing as well as 944 MBoe of revisions associated with unit configuration and EUR adjustments to existing proved locations. Changes in proved reserves that occurred during 2017 were primarily due to: • the acquisition of additional mineral and royalty interests located in the Permian, DJ, Anadarko and Williston Basins in multiple transactions, which included 4,820 MBoe of additional proved reserves; • well additions, extensions and discoveries of approximately 3,259 MBoe, as 854 horizontal well locations were converted from probable, possible and contingent resources to proved, due to continuous activity and delineation of additional zones on our mineral and royalty interests; • the divestiture of 1,627 MBoe through one sale of mineral and royalty interests located in the Permian Basin; and • positive volume revisions of approximately 2,581 MBoe attributable primarily to increased recovery in close proximity to our mineral and royalty interests, partially offset by negative revisions of approximately 2,434 MBoe, attributable primarily to operator development timing and revision of existing proved locations. Standardized Measure of Discounted Future Net Cash Flows Guidelines prescribed in FASB’s Accounting Standards Codification (“ASC”) Topic 932 Extractive Industries—Oil and Gas, have been followed for computing a standardized measure of future net cash flows and changes therein relating to estimated proved reserves. Future cash inflows are determined by applying prices and costs, including transportation, quality, and basis differentials, to the year-end estimated quantities of oil, natural gas and NGLs to be produced in the future. The resulting future net cash flows are reduced to present value amounts by applying a ten percent annual discount factor. The assumptions used to compute the standardized measure are those prescribed by the FASB and the SEC. These assumptions do not necessarily reflect Brigham Resources’ expectations of actual revenues to be derived from those reserves, nor their present value. The limitations inherent in the reserve quantity estimation process, as discussed previously, are equally applicable to the standardized measure computations since these reserve quantity estimates are the basis for the valuation process. Reserve estimates are inherently imprecise and estimates of new discoveries and undeveloped locations are more imprecise than estimates of established proved producing oil and gas properties. Accordingly, these estimates are expected to change as future information becomes available. The following summary sets forth the future net cash flows relating to proved oil and gas reserves based on the standardized measure prescribed in ASC Topic 932: For the Year Ended December 31, (In thousands) 2019 2018 2017 Future crude oil, natural gas, and NGL sales $ 1,042,118 $ 1,049,141 $ 595,874 Future severance tax and ad valorem taxes (73,627 ) (70,248 ) (40,225 ) Future income tax expense (143,599 ) (144,421 ) (1,151 ) Future net cash flows 824,892 834,472 554,498 10% annual discount (359,258 ) (391,013 ) (238,030 ) Standardized measure of discounted future net cash flows $ 465,634 $ 443,459 $ 316,468 Standardized measure of discounted future net cash flows attributable to temporary equity $ 186,999 $ — $ — The following prices were used in the determination of standardized measure: For the Year Ended December 31, 2019 2018 2017 Oil (per Bbl) $ 51.01 $ 61.31 $ 47.80 Natural gas (per Mcf) 1.51 2.51 2.74 NGLs (per Bbl) 14.39 23.98 18.56 These prices were based on the 12-month arithmetic average first-of-month West Texas Intermediate (“WTI”) price of oil and Henry Hub price of natural gas. The NGL pricing varied by basin at 13% to 30% of WTI. All prices have been adjusted for transportation, quality, basis differentials and post-production costs. The principal sources of change in the standardized measure of discounted future net cash flows are: For the Year Ended December 31, (In thousands) 2019 2018 2017 Standardized measure of discounted future net cash flows, beginning of the year $ 443,459 $ 316,468 $ 185,752 Changes in the year resulting from: Sales, less production costs (86,492 ) (52,278 ) (26,711 ) Revisions of previous quantity estimates (41,539 ) (22,942 ) 4,894 Extensions, discoveries, and other additions 69,057 71,668 56,511 Net change in prices and production costs (99,660 ) 71,770 30,565 Accretion of discount 51,949 31,713 18,612 Purchase of reserves in place 137,819 148,580 79,190 Divestitures of reserves in place (5,783 ) — (26,742 ) Net change in taxes (5,739 ) (75,369 ) (298 ) Timing differences and other 2,563 (46,151 ) (5,305 ) Standardized measure of discounted future net cash flows, end of the year $ 465,634 $ 443,459 $ 316,468 Capitalized oil and natural gas costs The aggregate amounts of costs capitalized for oil and natural gas producing activities and related aggregate amounts of accumulated depletion follow: For the Year Ended December 31, (In thousands) 2019 2018 2017 Oil and gas properties, at cost, using full cost method of accounting: Not subject to depletion $ 291,664 $ 228,151 $ 168,691 Subject to depletion 449,061 289,851 152,354 Total oil and gas properties, at cost 740,725 518,002 321,045 Less accumulated depreciation, depletion, and amortization (61,103 ) (27,628 ) (14,210 ) Total oil and gas properties, net $ 679,622 $ 490,374 $ 306,835 Costs incurred in oil and natural gas activities The following costs were incurred in oil and natural gas producing activities: For the Year Ended December 31, (In thousands) 2019 2018 2017 Acquisition of properties Unevaluated $ 78,093 $ 59,460 $ 50,224 Evaluated 140,025 137,496 51,862 Total $ 218,118 $ 196,956 $ 102,086 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the consolidated and combined financial statements and accompanying notes. Although management believes these estimates are reasonable, actual results could differ from these estimates. Changes in estimates are recorded prospectively. The accompanying consolidated and combined financial statements are based on a number of significant estimates including quantities of oil, natural gas and NGLs reserves that are the basis for the calculations of depreciation, depletion, amortization (“DD&A”) and impairment of oil and natural gas properties. Reservoir engineering is a subjective process of estimating underground accumulations of oil and natural gas and there are numerous uncertainties inherent in estimating quantities of proved oil and natural gas reserves. The accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. As a result, reserve estimates may differ from the quantities of oil and natural gas that are ultimately recovered. Brigham Minerals’ reserve estimates are audited by Cawley, Gillespie & Associates, Inc. (“CG&A”), an independent petroleum engineering firm. Other items subject to significant estimates and assumptions include the carrying amount of oil and natural gas properties, valuation of derivative instruments, share-based compensation and revenue accruals. |
Cash and Cash Equivalents | Cash and Cash Equivalents Brigham Minerals considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash includes cash that is contractually restricted for its use through an agreement with a non-related party. In 2019, the Company adopted ASU 2016-18, Statement of Cash Flows, which amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. |
Accounts Receivables | Accounts Receivables Receivables consist of royalty income due from operators for oil and gas sales to purchasers. Those purchasers remit payment for production to the operator of our properties and the operator, in turn, remits payment to us. Receivables from third parties for which we did not receive actual information, either due to timing delays or due to the unavailability of data at the time when revenues are recognized, are estimated. Volume estimates for wells with available historical actual data are based upon (i) the historical actual data for the months the data is available, or (ii) engineering estimates for the months the historical actual data is not available. We do not recognize revenues for wells with no historical actual data because we cannot conclude that it is probable that a significant revenue reversal will not occur in future periods. Pricing estimates are based upon actual prices realized in an area by adjusting the market price for the average basis differential from market on a basin-by-basin basis. Brigham Minerals routinely reviews outstanding balances, assesses the financial strength of its customers and records a reserve for amounts not expected to be fully recovered. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject Brigham Minerals to concentrations of credit risk consist of cash, accounts receivable, commodity derivative financial instruments and its prior revolving credit facility. Cash and cash equivalents are held in a few financial institutions in amounts that may, at times, exceed federally insured limits. However, no losses have been incurred and management believes that counterparty risks are minimal based on the reputation and history of the institutions selected. Accounts receivable are concentrated among operators and purchasers engaged in the energy industry within the United States. Management periodically assesses the financial condition of these entities and institutions and considers any possible credit risk to be minimal. |
Investments in Equity Securities | Investments in Equity Securities In January 2019, the Company adopted ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU changes to the current GAAP model primarily affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. Under the new standard, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale classification (changes in fair value reported in other comprehensive income) for equity securities with readily determinable fair values. Prior to January 2019, Brigham Minerals classified its equity securities as available-for-sale, and as such, they were carried at fair value. Changes in fair value of available-for-sale securities were reported as a component of other comprehensive income. Losses were recognized within the consolidated and combined statement of operations when a decline in value is determined to be other-than-temporary. Brigham Minerals used the average cost method to determine the realized gain or loss for each sale or distribution of available-for-sale securities. |
Financial Instruments | Financial Instruments Brigham Minerals’ financial instruments consist of cash and cash equivalents, receivables, payables, derivative assets and liabilities, investments in equity securities and long-term debt. The carrying amounts of cash and cash equivalents, receivables and payables approximate fair value due to the highly liquid or short-term nature of these instruments. The equity securities are publicly traded and are valued using quoted market prices. The fair values of Brigham Minerals’ derivative assets and liabilities are based on a third-party industry-standard pricing model using contract terms and prices and assumptions and inputs that are substantially observable in active markets throughout the full term of the instruments, including forward oil and gas price curves, discount rates, volatility factors and credit risk adjustments. The carrying amount of long-term debt associated with borrowings outstanding under Brigham Minerals’ revolving credit facility approximates fair value as borrowings bear interest at variable market rates. |
Derivative Instruments | Derivative Instruments In the normal course of business, Brigham Minerals is exposed to certain risks, including changes in the prices of oil, natural gas and NGLs and interest rates. Brigham Minerals has occasionally entered into derivative contracts to manage its exposure to these risks. Brigham Minerals’ risk management activity is generally accomplished through over-the-counter derivative contracts with large financial institutions. Brigham Minerals does not enter into derivative instruments for speculative purposes. Derivative instruments are recognized at fair value. If a right of offset exists under master netting arrangements and certain other criteria are met, derivative assets and liabilities with the same counterparty are netted on the consolidated and combined balance sheets. Brigham Minerals does not specifically designate derivative instruments as cash flow hedges, even though they reduce its exposure to changes in oil and natural gas prices; therefore, gains and losses arising from changes in the fair value of derivatives are recognized on a net basis in the accompanying consolidated and combined statements of operations within (loss) gain on derivative instruments, net. |
Oil and Gas Properties | Oil and Gas Properties Brigham Minerals uses the full cost method of accounting for its oil and natural gas properties. Under this method, all acquisition costs incurred for the purpose of acquiring mineral and royalty interests and certain related employee costs are capitalized into a full cost pool. Costs associated with general corporate activities are expensed in the period incurred. Capitalized costs are amortized using the units-of-production method. Under this method, the provision for depletion is calculated by multiplying total production for the period by a depletion rate. The depletion rate is determined by dividing the total unamortized cost base by net equivalent proved reserves at the beginning of the period. Costs associated with unevaluated properties are excluded from the amortizable cost base until a determination has been made as to the existence of proved reserves. Unevaluated properties are reviewed periodically to determine whether the costs incurred should be reclassified to the full cost pool and subjected to amortization. The costs associated with unevaluated properties primarily consist of acquisition costs and capitalized general and administrative costs. Unevaluated properties are assessed for impairment on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: expectation of future drilling activity; past drilling results and activity; geological and geophysical evaluations; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative acquisition costs incurred to date for such property are transferred to the full cost pool and are then subject to amortization. There was no impairment recorded for unevaluated properties in 2019 , 2018 and 2017 . Sales and abandonments of oil and natural gas properties being amortized are accounted for as adjustments to the full cost pool, with no gain or loss recognized unless the adjustments would significantly alter the relationship between capitalized costs and proved reserves. A significant alteration would not ordinarily be expected to occur upon the sale of reserves involving less than 25% of the reserve quantities of a cost center. Natural gas volumes are converted to barrels of oil equivalent (Boe) at the rate of six thousand cubic feet (Mcf) of natural gas to one barrel (Bbl) of oil. This convention is not an equivalent price basis and there may be a large difference in value between an equivalent volume of oil versus an equivalent volume of natural gas. Under the full cost method of accounting, total capitalized costs of oil and natural gas properties, net of accumulated depletion, may not exceed an amount equal to the present value of future net revenues from proved reserves, discounted at 10% per annum, plus the lower of cost or fair value of unevaluated properties (the ceiling limitation). A ceiling limitation is calculated at each reporting period. If total capitalized costs, net of accumulated DD&A are greater than the ceiling limitation, a write-down or impairment of the full cost pool is required. A write-down of the carrying value of the full cost pool is a noncash charge that reduces earnings and impacts equity in the period of occurrence and typically results in lower depletion expense in future periods. Once incurred, a write-down cannot be reversed at a later date. The ceiling limitation calculation is prepared using the 12-month first day of the month oil and natural gas average prices, as adjusted for basis or location differentials, held constant over the life of the reserves (net wellhead prices). If applicable, these net wellhead prices would be further adjusted to include the effects of any fixed price arrangements for the sale of oil and natural gas. |
Share-Based Compensation | Share-Based Compensation Brigham Minerals accounts for its share-based compensation including grants of the Incentive Units, restricted stock awards, time-based restricted stock units and performance-based stock units in the consolidated and combined statements of operations based on their estimated fair values at grant date. Brigham Minerals uses a Monte Carlo simulation to determine the fair value of performance-based stock units. Brigham Minerals recognizes expense on a straight-line basis over the vesting period of the respective grant, which is generally the requisite service period. Brigham Minerals capitalizes a portion of the share-based compensation cost to oil and gas properties on the consolidated and combined balance sheets. Share-based compensation expense is included in general and administrative expenses in Brigham Minerals’ consolidated and combined statements of operations included within this Annual Report. There was approximately $19.3 million of unamortized compensation expense relating to outstanding awards at December 31, 2019 , a portion of which will be capitalized. The unrecognized share-based compensation expense will be recognized on a straight-line basis over the remaining vesting periods of the awards. Brigham Minerals accounts for forfeitures as they occur. |
Earnings Per Share | Earnings Per Share Brigham Minerals uses the “if-converted” method to determine the potential dilutive effect of its Class B common stock and the treasury stock method to determine the potential dilutive effect of outstanding Incentive Units, RSAs, RSUs, and PSUs. |
Employee Benefit Plan | Employee Benefit Plan We sponsor a 401(k) tax-deferred savings plan for our employees. We match 100% of each employee’s contributions, up to 6% of the employee’s total compensation. Brigham Resources may also contribute additional amounts at its discretion. |
Income Taxes | Income Taxes Brigham Minerals accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are calculated by applying existing tax laws and the rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Brigham Minerals periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets, including net operating losses. In making this determination, Brigham Minerals considers all available positive and negative evidence and makes certain assumptions. Brigham Minerals considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends and its outlook for future years. |
Temporary Equity | Temporary Equity Brigham Minerals accounts for the Original Owners’ 40.2% interest in Brigham LLC as temporary equity as a result of certain redemption rights held by the Original Owners as discussed in “Note 9.—Temporary Equity.” As such, the Company adjusts temporary equity to its maximum redemption amount at the balance sheet date, if higher than the carrying amount. The redemption amount is based on the 10-day volume-weighted average closing price (“VWAP”) of Class A shares at the end of the reporting period. Changes in the redemption value are recognized immediately as they occur, as if the end of the reporting period was also the redemption date for the instrument, with an offsetting entry to additional paid-in capital. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers On December 31, 2019 , the Company adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, ("ASC 606") using the modified retrospective approach, which only applied to contracts that were in effect as of the date of adoption. The adoption did not require an adjustment to opening retained earnings for the cumulative effect adjustment and did not impact the Company’s previously reported results of operations, nor its ongoing consolidated and combined balance sheets, statements of cash flow or statements of changes in shareholders' and members' equity. Overall, there were no material changes in the timing of the satisfaction of the Company’s performance obligations or the allocation of the transaction price to its performance obligations in applying the guidance in ASC 606 as compared to legacy U.S. GAAP. Oil and natural gas sales Oil, natural gas and NGLs sales revenues are generally recognized when control of the product is transferred to the customer, the performance obligations under the terms of the contracts with customers are satisfied and collectability is reasonably assured. All of the Company’s oil, natural gas and NGL sales are made under contracts with customers (operators). The performance obligations for the Company’s contracts with customers are satisfied at a point in time through the delivery of oil and natural gas to its customers. Accordingly, the Company’s contracts do not give rise to contract assets or liabilities. The Company typically receives payment for oil, natural gas and NGL sales within 60 days of the month of delivery, which can extend up to 9 months after initial production from the well. The Company’s contracts for oil, natural gas and NGL sales are standard industry contracts that include variable consideration based on the monthly index price and adjustments that may include counterparty-specific provisions related to volumes, price differentials, discounts and other adjustments and deductions. As each unit of product represents a separate performance obligation and the consideration is variable as it relates to oil and natural gas prices, Brigham Minerals recognizes revenue from oil and natural gas sales using the allocation exception for variable consideration in ASC 606. Lease bonus and other income Brigham Minerals also earns revenue from lease bonuses, delay rentals, and right-of-way payments. We generate lease bonus revenue by leasing our mineral interests to exploration and production companies. A lease agreement represents our contract with a customer and generally transfers the rights to any oil or natural gas discovered, grants us a right to a specified royalty interest, and requires that drilling and completion operations commence within a specified time period. The Company recognizes lease bonus revenues when the lease agreement has been executed, payment has been received, and the Company has no further obligation to refund the payment. At the time Brigham Minerals executes the lease agreement, Brigham Minerals expects to receive the lease bonus payment within a reasonable time, though in no case more than one year, such that Brigham Minerals has not adjusted the expected amount of consideration for the effects of any significant financing component per the practical expedient in ASC 606. Brigham Minerals also recognizes revenue from delay rentals to the extent drilling has not started within the specified period, payment has been received, and we have no further obligation to refund the payment. Right-of-way payments are recorded by the Company when the agreement has been executed, payment is determined to be collectable, and the Company has no further obligation to refund the payment. Allocation of transaction price to remaining performance obligations Oil and natural gas sales Brigham Minerals’ right to royalty income does not originate until production occurs and, therefore, is not considered to exist beyond each day’s production. Therefore, there are no remaining performance obligation under any of our royalty income contracts. Lease bonus and other income Given that Brigham Minerals does not recognize lease bonus or other income until a lease agreement has been executed, at which point its performance obligation has been satisfied, and payment is received, Brigham Minerals does not record revenue for unsatisfied or partially unsatisfied performance obligations as of the end of the reporting period. Prior-period performance obligations Brigham Minerals records revenue in the month production is delivered to the purchaser. As a non-operator, Brigham Minerals has limited visibility into the timing of when new wells start producing and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, Brigham Minerals is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded within the Accounts receivable line item in the accompanying consolidated and combined balance sheets. The difference between the Company’s estimates and the actual amounts received for oil and natural gas sales is recorded in the month that payment is received from the third party. |
Debt Issuance Cost | Debt issuance costs were incurred in connection with establishing and amending credit facilities for Brigham Resources and are amortized over the term of the credit facilities using the straight-line method, which approximates the effective interest rate method. |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted Brigham Minerals’ status as an emerging growth company under Section 107 of the JOBS Act permits it to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. Brigham Minerals is choosing to take advantage of this extended transition period and, as a result, it will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for private companies. In February 2016, the FASB issued ASU 2016-02, Leases, which requires all leasing arrangements to be presented in the balance sheet as liabilities along with a corresponding asset. ASU 2016-02 does not apply to leases of mineral rights to explore for or use crude oil and natural gas. The ASU will replace most existing lease guidance in GAAP when it becomes effective. In January 2018, the FASB issued ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, to provide an optional practical expedient to not evaluate existing or expired land easements that were not previously accounted for as leases under Topic 840. In July 2018, the FASB issued ASU 2018-11 Leases (Topic 842): Targeted Improvements, which provides for another transition method, in addition to the existing transition method, by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption (i.e. comparative periods presented in the financial statements will continue to be in accordance with current GAAP (Topic 840, Leases)). The new standard becomes effective for us during the fiscal year ending December 31, 2021 and interim periods within the fiscal year ending December 31, 2022 and early adoption is permitted. We are currently evaluating the impact that the adoption of this update will have on our consolidated and combined financial statements and related disclosures. |
Fair Value Measurement | We classify financial assets and liabilities that are measured and reported at fair value on a recurring basis using a hierarchy based on the inputs used in measuring fair value. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We classify the inputs used to measure fair value into the following hierarchy: • Level 1: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. • Level 2: Inputs based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable and can be corroborated by observable market data. • Level 3: Inputs that reflect management’s best estimates and assumptions of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer would be reported at the beginning of the period in which the change occurs. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Restrictions on Cash and Cash Equivalents | The December 31, 2018 accompanying statement of cash flow that was adjusted as a result of adoption of ASU 2016-18 is summarized below: Years Ended December 31, 2018 2018 (In thousands) As reported As adjusted Changes in restricted cash held in escrow for acquisitions $ (474 ) $ — Net cash provided by (used in) investing activities (195,742 ) (195,268 ) Increase in cash, cash equivalents and restricted cash $ 25,099 $ 25,573 Cash, cash equivalents and restricted cash, beginning of period 6,886 6,886 Cash, cash equivalents and restricted cash end of period 31,985 32,459 |
Schedule of Accounts Receivable | At December 31, 2019 and 2018 , accounts receivable was comprised of the following: December 31, (In thousands) 2019 2018 Oil and gas sales $ 27,888 $ 19,769 Allowance for doubtful accounts (556 ) (382 ) Other 2,959 1,308 Total accounts receivables $ 30,291 $ 20,695 |
Schedules of Concentration of Risk, by Risk Factor | Concentrations of oil and gas sales to significant customers (operators) are presented in the table below. For the year ended December 31, 2019 2018 2017 Occidental Petroleum Corp. 16 % 15 % — Continental Resources, Inc. 12 % 10 % 10 % XTO Energy, Inc. 10 % — — Noble Energy, Inc. 5 % 9 % 13 % |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Extractive Industries [Abstract] | |
Schedule of Oil and Gas Properties | Costs associated with general corporate activities are expensed in the period incurred. Oil and gas properties consisted of the following: December 31, (In thousands) 2019 2018 Oil and gas properties, at cost, using the full cost method of accounting: Not subject to depletion $ 291,664 $ 228,151 Subject to depletion 449,061 289,851 Total oil and gas properties, at cost 740,725 518,002 Less accumulated depreciation, depletion, and amortization (61,103 ) (27,628 ) Total oil and gas properties, net $ 679,622 $ 490,374 Costs not subject to depletion are as follows, by the year in which such costs were incurred: By Year: Total 2019 2018 2017 2016 Prior (In thousands) Property Acquisition costs $ 291,664 $ 80,964 $ 73,002 $ 66,139 $ 10,745 $ 60,814 The aggregate amounts of costs capitalized for oil and natural gas producing activities and related aggregate amounts of accumulated depletion follow: For the Year Ended December 31, (In thousands) 2019 2018 2017 Oil and gas properties, at cost, using full cost method of accounting: Not subject to depletion $ 291,664 $ 228,151 $ 168,691 Subject to depletion 449,061 289,851 152,354 Total oil and gas properties, at cost 740,725 518,002 321,045 Less accumulated depreciation, depletion, and amortization (61,103 ) (27,628 ) (14,210 ) Total oil and gas properties, net $ 679,622 $ 490,374 $ 306,835 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Asset Acquisitions | During the years ended December 31, 2019 and 2018 , Brigham Minerals entered into a number of individually insignificant acquisitions of mineral and royalty interests from various sellers in Texas, Oklahoma, Colorado, New Mexico, and North Dakota, as reflected in the table below. The change in the oil and natural gas property balance is comprised of payments for acquisitions of minerals, land brokerage costs and capitalized general and administrative expenses that were funded with borrowings under its Owl Rock credit facility, our revolving credit facility and proceeds from the IPO. Assets Acquired Cash Consideration Paid (In thousands) Evaluated Unevaluated Twelve months ended December 31, 2019 $ 140,025 $ 78,093 $ 218,118 Twelve months ended December 31, 2018 $ 115,589 $ 81,367 $ 196,956 The following costs were incurred in oil and natural gas producing activities: For the Year Ended December 31, (In thousands) 2019 2018 2017 Acquisition of properties Unevaluated $ 78,093 $ 59,460 $ 50,224 Evaluated 140,025 137,496 51,862 Total $ 218,118 $ 196,956 $ 102,086 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Offsetting Derivative Assets and Liabilities | The following table summarizes the location and fair value of our derivative instruments as of December 31, 2018 (in thousands): Derivative Instruments Balance Sheet Classification Gross Amount Recognized Less Group Amount of Offset Net Amount Recognized (In thousands) As of December 31, 2018 Derivative assets: Commodity swaps Current derivative assets $ 1,057 $ — $ 1,057 |
Schedule of Gain (Loss) On Derivative Instruments | The following table summarizes Brigham Minerals' (loss) gain on derivative instruments, net on its consolidated and combined statement of operations for the years ended December 31, 2019 , 2018 and 2017 (in thousands): Years Ended December 31, (In thousands) 2019 2018 2017 Realized gain (loss) $ 470 $ (754 ) $ — Unrealized gain (loss) (1,038 ) 1,178 (121 ) (Loss) gain on derivative instruments, net $ (568 ) $ 424 $ (121 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Brigham Minerals' financial assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2018 are as follows (in thousands): December 31, 2018 Level 1 Level 2 Level 3 Total Assets-commodity derivative instruments $ — $ 1,057 $ — $ 1,057 |
Shareholders' and Members' Eq_2
Shareholders' and Members' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reflects the allocation of net income (loss) to common stockholders and EPS computations for the period indicated based on a weighted average number of common stock outstanding for the period: Years Ended December 31, (In thousands, except per share data) 2019 2018 2017 Basic EPS Numerator: Basic net income attributable to Brigham Minerals, Inc. shareholders $ 6,901 $ — $ — Less: net income attributable to Brigham Minerals, Inc. shareholders pre-IPO (848 ) — — Basic net income attributable to Brigham Minerals, Inc. shareholders post-IPO (1) 6,053 — — Denominator: Basic weighted average shares outstanding (1) 22,870 — — Basic EPS attributable to Brigham Minerals, Inc. shareholders $ 0.26 $ — $ — Diluted EPS Numerator: Basic net income attributable to Brigham Minerals, Inc. shareholders post-IPO (1) 6,053 — — Diluted net income attributable to Brigham Minerals, Inc. shareholders 6,053 — — Denominator: Basic weighted average shares outstanding (1) 22,870 — — Effect of dilutive securities: Diluted weighted average shares outstanding 22,870 — — Diluted EPS attributable to Brigham Minerals, Inc. shareholders $ 0.26 $ — $ — (1) - Represents earnings per share of Class A common stock and weighted average shares of Class A common stock for the period from April 17, 2019 through December 31, 2019, the period following the IPO. |
Schedule of Restricted Incentive Unit Activity | A summary of the Restricted Units issued and outstanding is as follows: Series M Units M-1 M-2 M-3 M-4 Total Beginning balance 7,520 7,520 7,520 7,520 30,080 2017 issuances — — — — — 2017 forfeitures — — — — — Outstanding at December 31, 2017 7,520 7,520 7,520 7,520 30,080 2018 issuances 1,030 1,030 1,030 1,030 4,120 2018 forfeitures — — — — — Outstanding at December 31, 2018 8,550 8,550 8,550 8,550 34,200 Series Z Units Z-1 Z-2 Z-3 Z-4 Total Beginning balance 4,328 4,328 4,328 4,328 17,312 2017 issuances — — — — — 2017 forfeitures (15 ) (15 ) (15 ) (15 ) (60 ) Outstanding at December 31, 2017 4,313 4,313 4,313 4,313 17,252 2018 issuances 485 485 485 485 1,940 2018 forfeitures (105 ) (105 ) (105 ) (105 ) (420 ) Outstanding at December 31, 2018 4,693 4,693 4,693 4,693 18,772 A summary of the Incentive Unit activity for the year ended December 31, 2019 is as follows: Incentive Units (In thousands) Number of Incentive Units Grant-date Fair Value Outstanding—January 1, 2019 3,272 $ 1.49 Vested (3,060 ) $ 0.89 Outstanding—December 31, 2019 212 $ 10.04 A summary of the Incentive Unit activity for the year ended December 31, 2018 is as follows: Incentive Units (In thousands) Number of Incentive Units Grant-date Fair Value Outstanding—January 1, 2018 2,918 $ 0.45 Granted 354 10.04 Vested — — Outstanding—December 31, 2018 3,272 $ 1.49 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Incentive Unit Activity | A summary of the Restricted Units issued and outstanding is as follows: Series M Units M-1 M-2 M-3 M-4 Total Beginning balance 7,520 7,520 7,520 7,520 30,080 2017 issuances — — — — — 2017 forfeitures — — — — — Outstanding at December 31, 2017 7,520 7,520 7,520 7,520 30,080 2018 issuances 1,030 1,030 1,030 1,030 4,120 2018 forfeitures — — — — — Outstanding at December 31, 2018 8,550 8,550 8,550 8,550 34,200 Series Z Units Z-1 Z-2 Z-3 Z-4 Total Beginning balance 4,328 4,328 4,328 4,328 17,312 2017 issuances — — — — — 2017 forfeitures (15 ) (15 ) (15 ) (15 ) (60 ) Outstanding at December 31, 2017 4,313 4,313 4,313 4,313 17,252 2018 issuances 485 485 485 485 1,940 2018 forfeitures (105 ) (105 ) (105 ) (105 ) (420 ) Outstanding at December 31, 2018 4,693 4,693 4,693 4,693 18,772 A summary of the Incentive Unit activity for the year ended December 31, 2019 is as follows: Incentive Units (In thousands) Number of Incentive Units Grant-date Fair Value Outstanding—January 1, 2019 3,272 $ 1.49 Vested (3,060 ) $ 0.89 Outstanding—December 31, 2019 212 $ 10.04 A summary of the Incentive Unit activity for the year ended December 31, 2018 is as follows: Incentive Units (In thousands) Number of Incentive Units Grant-date Fair Value Outstanding—January 1, 2018 2,918 $ 0.45 Granted 354 10.04 Vested — — Outstanding—December 31, 2018 3,272 $ 1.49 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Performance-Based Restricted Stock Units Expected dividend yield 8.1 % Risk-free interest rate 2.3 % Volatility 30 % Brigham LLC used the Black-Scholes option pricing valuation model with the following weighted-average assumptions Incentive Units 2018 Awards 2015 Awards 2013 Awards Expected volatility 28 % 33 % 40 % Expected dividend yield — — — Expected term (in years) 0.7 3.7 6.2 Risk-free interest rates 2.45 % 1.07 % 0.94 % Weighted-average grant date fair value per Incentive Unit $10.04 $0.03 $1.51 |
Schedule of Share-Based Compensation Expense | Share-based compensation cost recorded for each type of share-based compensation award, was as follows for the periods indicated: Years Ended December 31, (In thousands) 2019 2018 2017 Incentive Units (1) (3) $ 2,904 $ — $ — RSAs (2) (3) 3,972 — — RSUs (3) 4,630 — — PSUs (4) 2,361 — — Capitalized share-based compensation (5) (3,818 ) — — Total share-based compensation expense $ 10,049 $ — $ — (1) Includes a cumulative effect adjustment to share-based compensation cost of $2.0 million pertaining to the period from the grant date through the IPO date. No compensation expense was recorded prior to the IPO because the IPO was not considered probable. (2) Includes $3.2 million recorded at grant date of April 23, 2019, associated with 152,742 RSAs, which vested immediately. (3) Share-based compensation expense relating to Incentive Units, restricted stock awards and time-based restricted stock units with ratable vesting is recognized on a straight-line basis over the requisite service period for the entire award. (4) Share-based compensation expense relating to PSUs with cliff-vesting is recognized on a straight-line basis over the performance period for the entire award. (5) During the year ended December 31, 2019 , Brigham Minerals capitalized $3.8 million of the share-based compensation to unevaluated property on its balance sheet. In addition to the time-based vesting conditions described above, the Incentive Units could be earned upon the completion of an initial public offering or another liquidity event, considered a performance condition, which was not deemed probable and therefore no compensation expense was recognized prior to December 31, 2018. Future Share-Based Compensation Expense The following table reflects the future share-based compensation expense to be recorded for the share-based compensation awards that were outstanding at December 31, 2019 , a portion of which will be capitalized: (In thousands) Incentive Units RSAs RSUs PSUs Total 2020 $ 712 $ 1,052 $ 4,217 $ 3,419 $ 9,400 2021 712 1,052 3,890 3,419 9,073 2022 534 326 — — 860 Total $ 1,958 $ 2,430 $ 8,107 $ 6,838 $ 19,333 |
Temporary Equity (Tables)
Temporary Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Temporary Equity | From the date of the IPO through December 31, 2019 , the Company recorded adjustments to the value of temporary equity as presented in the table below: (In thousands) Temporary Equity Adjustments Balance - April 17, 2019 (1) $ 518,000 Conversion of Class B shares to Class A shares (104,390 ) Net income attribution 9,646 Distribution to holders of temporary equity (20,321 ) Adjustment of temporary equity to redemption amount (2) 51,572 Balance - December 31, 2019 $ 454,507 (1) Based on 28,777,802 shares of Class B common stock outstanding and Class A share price of $18.00 . (2) Based on 22,847,045 shares of Class B common stock outstanding and Class A share 10-day VWAP of $19.89 at December 31, 2019 . |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Years Ended December 31, (In thousands) 2019 2018 2017 State Income Tax Current (benefit)/expense $ 692 $ (23 ) $ 713 Deferred (benefit)/expense 63 (138 ) 295 Federal Income Tax Current expense 1,322 114 — Deferred expense 602 374 — Totals: $ 2,679 $ 327 $ 1,008 Total current income taxes $ 2,014 $ 91 $ 713 Total deferred income taxes 665 236 295 Totals: $ 2,679 $ 327 $ 1,008 |
Schedule of Income before Income Tax, Domestic and Foreign | The following table reconciles the income tax provision with income tax expense at the federal statutory rate for the periods indicated: Years Ended December 31, (In thousands) 2019 2018 2017 Income before income taxes $ 24,318 $ 33,142 $ 116,620 Less: income before income taxes attributable to predecessor (5,118 ) (30,805 ) (116,620 ) Less: income before income taxes attributable to temporary equity (9,858 ) — — Income before income taxes attributable to shareholders $ 9,342 $ 2,337 $ — Income tax at the federal statutory rate $ 1,962 $ 491 $ — State income taxes, net of federal benefit 717 (150 ) 1,008 Percentage depletion in excess of basis — (14 ) — Total income tax provision $ 2,679 $ 327 $ 1,008 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were are follows: Years Ended December 31, (In thousands) 2019 2018 Deferred tax assets: Investment in subsidiary $ 19,021 $ — Total deferred tax assets: $ 19,021 $ — Deferred tax liabilities: Oil and gas properties (198 ) (208 ) Investment in subsidiary — (3,476 ) Total deferred tax liabilities $ (198 ) $ (3,684 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Commitments | Future minimum lease commitments under noncancelable operating leases at December 31, 2019 are presented below (in thousands): Year Commitment 2020 $ 1,000 2021 1,345 2022 1,419 2023 1,492 2024 1,566 2025 and Thereafter $ 4,312 Total $ 11,134 |
Quarterly Financial Informati_2
Quarterly Financial Information-Unaudited Quarterly Financial Information-Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Summarized quarterly financial data for the years ended December 31, 2019 and 2018 are presented in the following tables. During the periods presented below, earnings per share information is not available due to no shares being recognized for accounting purposes for periods prior to the IPO. Three Months Ended (In thousands, except per share amount) March 31, June 30, September 30, December 31, 2019 Total revenues $ 18,265 $ 24,529 $ 25,107 $ 33,614 Income from operations 8,707 5,034 9,115 14,362 Net income 4,036 (3,207 ) 8,464 12,346 Net income attributable to Brigham Minerals (2) 534 (1,856 ) 3,146 5,077 Basic EPS attributable to Brigham Minerals, Inc. shareholders - (1) — (0.12 ) 0.14 0.20 Diluted EPS attributable to Brigham Minerals, Inc. shareholders - (1) — (0.12 ) 0.14 0.20 2018 Total revenues $ 14,083 $ 16,889 $ 18,701 $ 17,591 Income from operations 8,219 10,564 11,716 8,732 Net income 8,197 9,351 8,153 7,114 Net income attributable to Brigham Minerals (2) — — 891 948 Basic EPS attributable to Brigham Minerals, Inc. shareholders - (1) — — — — Diluted EPS attributable to Brigham Minerals, Inc. shareholders - (1) — — — — (1) - Represents earnings per share of Class A common stock and Class B common stock and weighted average shares of Class A common stock and Class B common stock for the period from April 17, 2019 through December 31, 2019, the period following the IPO. See "Note 8.— Shareholders' and Members' Equity" for further discussion of this transaction. (2) - Represents net income attributable to Brigham Minerals for the period starting with the completion of the July 2018 restructuring. See "Note 1.—Business and Basis of Presentation" for further discussion of this transaction. |
Reserve and Related Financial_2
Reserve and Related Financial Data (SMOG) - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Extractive Industries [Abstract] | |
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities | The reserves at December 31, 2019 and December 31, 2018 presented below were audited by CG&A and the reserves at December 31, 2017 presented below were prepared by CG&A. Estimates of proved reserves are inherently imprecise and are continually subject to revision based on production history, results of additional exploration and development, price changes and other factors. The reserves are located in various fields in Texas, New Mexico, Oklahoma, Colorado, Wyoming, North Dakota, Montana and Pennsylvania. All of the proved reserves are located in the continental United States. Crude Oil (MBbl) Natural Gas (Mmcf) NGL (MBbl) Total (MBoe) Proved reserve quantities, December 31, 2016 7,174 22,991 2,356 13,363 Sales of minerals-in-place (1,291 ) (815 ) (200 ) (1,627 ) Extensions and discoveries 1,548 6,012 709 3,259 Acquisitions 2,141 9,380 1,116 4,820 Revisions of previous estimates (394 ) 2,601 108 147 Production (454 ) (1,768 ) (109 ) (858 ) Proved reserve quantities, December 31, 2017 8,724 38,401 3,980 19,104 Sales of minerals-in-place — — — — Extensions and discoveries 1,765 5,285 562 3,208 Acquisitions 3,669 13,862 1,374 7,354 Revisions of previous estimates (390 ) (3,245 ) (577 ) (1,508 ) Production (777 ) (2,507 ) (222 ) (1,417 ) Proved reserve quantities, December 31, 2018 12,991 51,796 5,117 26,741 Sales of minerals-in-place (182 ) (697 ) (110 ) (409 ) Extensions and discoveries 1,997 7,780 817 4,110 Acquisitions 4,256 13,053 1,218 7,651 Revisions of previous estimates (586 ) (5,495 ) (797 ) (2,299 ) Production (1,515 ) (4,707 ) (407 ) (2,706 ) Proved reserve quantities, December 31, 2019 16,961 61,730 5,838 33,088 Proved reserve quantities at December 31, 2019 attributable to temporary equity 6,812 24,792 2,345 13,289 Proved developed reserve quantities: December 31, 2017 2,804 13,028 1,185 6,160 December 31, 2018 6,067 21,735 1,898 11,588 December 31, 2019 9,924 33,232 2,494 17,957 Proved developed reserves at December 31, 2019 attributable to temporary equity 3,986 13,346 1,002 7,212 Proved undeveloped reserve quantities: December 31, 2017 5,920 25,373 2,795 12,944 December 31, 2018 6,924 30,061 3,219 15,153 December 31, 2019 7,037 28,498 3,344 15,131 Proved undeveloped reserves at December 31, 2019 attributable to temporary equity 2,826 11,445 1,343 6,077 |
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure | The following summary sets forth the future net cash flows relating to proved oil and gas reserves based on the standardized measure prescribed in ASC Topic 932: For the Year Ended December 31, (In thousands) 2019 2018 2017 Future crude oil, natural gas, and NGL sales $ 1,042,118 $ 1,049,141 $ 595,874 Future severance tax and ad valorem taxes (73,627 ) (70,248 ) (40,225 ) Future income tax expense (143,599 ) (144,421 ) (1,151 ) Future net cash flows 824,892 834,472 554,498 10% annual discount (359,258 ) (391,013 ) (238,030 ) Standardized measure of discounted future net cash flows $ 465,634 $ 443,459 $ 316,468 Standardized measure of discounted future net cash flows attributable to temporary equity $ 186,999 $ — $ — |
Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure | The following prices were used in the determination of standardized measure: For the Year Ended December 31, 2019 2018 2017 Oil (per Bbl) $ 51.01 $ 61.31 $ 47.80 Natural gas (per Mcf) 1.51 2.51 2.74 NGLs (per Bbl) 14.39 23.98 18.56 |
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows | The principal sources of change in the standardized measure of discounted future net cash flows are: For the Year Ended December 31, (In thousands) 2019 2018 2017 Standardized measure of discounted future net cash flows, beginning of the year $ 443,459 $ 316,468 $ 185,752 Changes in the year resulting from: Sales, less production costs (86,492 ) (52,278 ) (26,711 ) Revisions of previous quantity estimates (41,539 ) (22,942 ) 4,894 Extensions, discoveries, and other additions 69,057 71,668 56,511 Net change in prices and production costs (99,660 ) 71,770 30,565 Accretion of discount 51,949 31,713 18,612 Purchase of reserves in place 137,819 148,580 79,190 Divestitures of reserves in place (5,783 ) — (26,742 ) Net change in taxes (5,739 ) (75,369 ) (298 ) Timing differences and other 2,563 (46,151 ) (5,305 ) Standardized measure of discounted future net cash flows, end of the year $ 465,634 $ 443,459 $ 316,468 |
Schedule of Capitalized Oil and Natural Gas Costs | Costs associated with general corporate activities are expensed in the period incurred. Oil and gas properties consisted of the following: December 31, (In thousands) 2019 2018 Oil and gas properties, at cost, using the full cost method of accounting: Not subject to depletion $ 291,664 $ 228,151 Subject to depletion 449,061 289,851 Total oil and gas properties, at cost 740,725 518,002 Less accumulated depreciation, depletion, and amortization (61,103 ) (27,628 ) Total oil and gas properties, net $ 679,622 $ 490,374 Costs not subject to depletion are as follows, by the year in which such costs were incurred: By Year: Total 2019 2018 2017 2016 Prior (In thousands) Property Acquisition costs $ 291,664 $ 80,964 $ 73,002 $ 66,139 $ 10,745 $ 60,814 The aggregate amounts of costs capitalized for oil and natural gas producing activities and related aggregate amounts of accumulated depletion follow: For the Year Ended December 31, (In thousands) 2019 2018 2017 Oil and gas properties, at cost, using full cost method of accounting: Not subject to depletion $ 291,664 $ 228,151 $ 168,691 Subject to depletion 449,061 289,851 152,354 Total oil and gas properties, at cost 740,725 518,002 321,045 Less accumulated depreciation, depletion, and amortization (61,103 ) (27,628 ) (14,210 ) Total oil and gas properties, net $ 679,622 $ 490,374 $ 306,835 |
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure | During the years ended December 31, 2019 and 2018 , Brigham Minerals entered into a number of individually insignificant acquisitions of mineral and royalty interests from various sellers in Texas, Oklahoma, Colorado, New Mexico, and North Dakota, as reflected in the table below. The change in the oil and natural gas property balance is comprised of payments for acquisitions of minerals, land brokerage costs and capitalized general and administrative expenses that were funded with borrowings under its Owl Rock credit facility, our revolving credit facility and proceeds from the IPO. Assets Acquired Cash Consideration Paid (In thousands) Evaluated Unevaluated Twelve months ended December 31, 2019 $ 140,025 $ 78,093 $ 218,118 Twelve months ended December 31, 2018 $ 115,589 $ 81,367 $ 196,956 The following costs were incurred in oil and natural gas producing activities: For the Year Ended December 31, (In thousands) 2019 2018 2017 Acquisition of properties Unevaluated $ 78,093 $ 59,460 $ 50,224 Evaluated 140,025 137,496 51,862 Total $ 218,118 $ 196,956 $ 102,086 |
Business and Basis of Present_2
Business and Basis of Presentation (Details) | Dec. 17, 2019 | Dec. 16, 2019USD ($)$ / sharesshares | May 07, 2019USD ($) | Apr. 17, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | Dec. 30, 2019USD ($) | Dec. 31, 2019USD ($)segmentbusiness | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 31, 2019USD ($) | Jul. 27, 2018USD ($) | Jul. 16, 2018 |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of operating segments | segment | 1 | |||||||||||
Number of distinct lines of business | business | 2 | |||||||||||
Equity securities distributed | $ 0 | $ 3,313,000 | $ (20,092,000) | |||||||||
Unamortized debt issuance costs written off | $ 4,000,000 | |||||||||||
Prepayment premium paid | 2,091,000 | 0 | 0 | |||||||||
Gain (loss) on debt extinguishment | (6,900,000) | (6,892,000) | 0 | 0 | ||||||||
Adjustment to APIC, stock issuance costs | $ 8,700,000 | 5,100,000 | 3,600,000 | |||||||||
Share based compensation, additional charge | 11,900,000 | |||||||||||
Capitalized share based compensation | 3,818,000 | $ 0 | 0 | |||||||||
Share based compensation expense | 19,333,000 | |||||||||||
Brigham Minerals LLC | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage by subsidiary | 43.30% | |||||||||||
Percentage of voting rights owned | 100.00% | |||||||||||
Brigham Resources, LLC | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Cash collateral posted for existing swap contracts | $ 1,600,000 | $ 1,400,000 | ||||||||||
Brigham Resources | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity method investment, ownership percentage | 16.50% | |||||||||||
Class A Common Stock | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Share price (in dollars per share) | $ / shares | $ 18 | |||||||||||
Initial Public Offering | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Consideration received | $ 273,400,000 | |||||||||||
Initial Public Offering | Class A Common Stock | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Sale of stock, number of shares issued (in shares) | shares | 16,675,000 | |||||||||||
Share price (in dollars per share) | $ / shares | $ 18 | |||||||||||
Sale of stock, ownership percentage | 75.80% | |||||||||||
December Offering | Class A Common Stock | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Sale of stock, number of shares issued (in shares) | shares | 12,650,000 | |||||||||||
December Offering, Company | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Consideration received | $ 102,700,000 | |||||||||||
Sale of stock, ownership percentage | 59.80% | |||||||||||
December Offering, Company | Class A Common Stock | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Sale of stock, number of shares issued (in shares) | shares | 6,000,000 | |||||||||||
December Offering, Selling Shareholders | Class A Common Stock | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Sale of stock, number of shares issued (in shares) | shares | 6,650,000 | |||||||||||
Share price (in dollars per share) | $ / shares | $ 18.10 | |||||||||||
Share price, net (in dollars per share) | $ / shares | $ 17.376 | |||||||||||
December Offering, Equivalent Units Issued | Class A Common Stock | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Sale of stock, number of shares issued (in shares) | shares | 5,496,813 | |||||||||||
Term Loan Facility | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Prepayment premium paid | 2,100,000 | |||||||||||
Legal fees paid | 800,000 | |||||||||||
Line of credit, borrowing base | $ 125,000,000 | |||||||||||
New Revolving Credit Facility | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Repayments of lines of credit | $ 80,000,000 | $ 200,000,000 | ||||||||||
New Revolving Credit Facility | Brigham Resources, LLC | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Line of credit, borrowing base | $ 135,000,000 | $ 150,000,000 | ||||||||||
Existing Owners of Brigham Minerals | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Sale of stock, ownership percentage | 10.50% | |||||||||||
Existing Owners of Brigham Minerals | Class A Common Stock | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of shares owned after transaction (in shares) | shares | 5,322,197 | |||||||||||
Sale of stock, ownership percentage | 24.20% | |||||||||||
Existing Owners of Brigham Minerals | Class B Common Stock | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Sale of stock, ownership percentage | 40.20% | 56.70% | ||||||||||
Existing Owners of Brigham Minerals | December Offering, Company | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Sale of stock, ownership percentage | 39.10% | |||||||||||
Investors in Offering | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Sale of stock, ownership percentage | 32.80% | |||||||||||
Previously Reported | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity securities distributed | 37,988,000 | |||||||||||
Operating expenses | $ 94,600,000 | |||||||||||
Incentive Units | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Compensation expense, cumulative effect adjustment at IPO | $ 2,000,000 | |||||||||||
Share based compensation expense | $ 1,958,000 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) $ in Thousands | Apr. 17, 2019 | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)$ / bbl$ / MMBTU | Dec. 31, 2018USD ($)$ / bbl$ / MMBTU | Dec. 31, 2017USD ($)$ / bbl$ / MMBTU |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase in investing cash flow | $ (216,832) | $ (195,268) | $ 26,172 | |||
Allowance for doubtful accounts | $ 556 | 556 | 382 | |||
Share based compensation expense | $ 19,333 | |||||
Employer matching contribution, percent of match | 100.00% | |||||
Employer matching contribution, percent of employees' total compensation | 6.00% | |||||
Contributions | $ 300 | 200 | 100 | |||
Deferred tax asset arising from the IPO | $ 13,700 | 13,664 | ||||
Timing of satisfaction of performance obligation and payment | The Company typically receives payment for oil, natural gas and NGL sales within 60 days of the month of delivery, which can extend up to 9 months after initial production from the well. | |||||
Debt issuance costs | 1,200 | $ 1,200 | 4,300 | |||
Accumulated amortization of debt issuance costs | $ 200 | 200 | 300 | |||
Amortization of debt issuance costs | $ 433 | 690 | $ 121 | |||
Existing Owners of Brigham Minerals | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Sale of stock, ownership percentage | 10.50% | |||||
Existing Owners of Brigham Minerals | Class B Common Stock | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Sale of stock, ownership percentage | 40.20% | 56.70% | ||||
Accounting Standards Update 2016-18 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase in investing cash flow | $ 500 | |||||
Crude Oil (MBbl) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Average sales prices (in dollars per share) | $ / bbl | 55.65 | 65.66 | 51.34 | |||
Natural gas (per Mcf) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Average sales prices (in dollars per share) | $ / MMBTU | 2.60 | 3.12 | 2.99 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Changes in restricted cash held in escrow for acquisitions | $ 0 | ||
Net cash provided by (used in) investing activities | $ (216,832) | (195,268) | $ 26,172 |
Increase in cash, cash equivalents and restricted cash | 18,674 | 25,573 | (27,074) |
Cash, cash equivalents and restricted cash, beginning of period | 32,459 | 6,886 | 33,960 |
Cash, cash equivalents and restricted cash end of period | 51,133 | 32,459 | 6,886 |
Previously Reported | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Changes in restricted cash held in escrow for acquisitions | (474) | ||
Net cash provided by (used in) investing activities | (195,742) | ||
Increase in cash, cash equivalents and restricted cash | 25,099 | ||
Cash, cash equivalents and restricted cash, beginning of period | $ 31,985 | 6,886 | |
Cash, cash equivalents and restricted cash end of period | $ 31,985 | $ 6,886 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Oil and gas sales | $ 27,888 | $ 19,769 |
Allowance for doubtful accounts | (556) | (382) |
Other | 2,959 | 1,308 |
Total accounts receivables | $ 30,291 | $ 20,695 |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Concentration Risk (Details) - Sales Revenue, Product Line - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Occidental Petroleum Corp. | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percentage) | 16.00% | 15.00% | 0.00% |
Continental Resources, Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percentage) | 12.00% | 10.00% | 10.00% |
XTO Energy, Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percentage) | 10.00% | 0.00% | 0.00% |
Noble Energy, Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percentage) | 5.00% | 9.00% | 13.00% |
Oil and Gas Properties - Schedu
Oil and Gas Properties - Schedule of Oil and Gas Properties (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Oil and gas properties, at cost, using the full cost method of accounting: | |||||
Not subject to depletion | $ 291,664 | $ 228,151 | |||
Subject to depletion | 449,061 | 289,851 | |||
Total oil and gas properties, at cost | 740,725 | 518,002 | |||
Less accumulated depreciation, depletion, and amortization | (61,103) | (27,628) | |||
Total oil and gas properties, net | 679,622 | 490,374 | |||
Costs not subject to depletion, cost per year | $ 80,964 | $ 73,002 | $ 66,139 | $ 10,745 | $ 60,814 |
Oil and Gas Properties - Narrat
Oil and Gas Properties - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)$ / Boe | Dec. 31, 2018USD ($)$ / Boe | Dec. 31, 2017USD ($)$ / Boe | |
Extractive Industries [Abstract] | |||
Depletion expense | $ 30.4 | $ 13.3 | $ 6.2 |
Full cost pool depletion per barrel of oil equivalent | $ / Boe | 11.22 | 9.38 | 7.25 |
Capitalized costs | $ 7.4 | $ 2.7 | $ 2.1 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Schedule of Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Assets acquired, evaluated | $ 140,025 | $ 137,496 | $ 51,862 |
Assets acquired, unevaluated | 78,093 | 59,460 | 50,224 |
Total | 218,118 | 196,956 | $ 102,086 |
Texas, Oklahoma, Colorado, New Mexico, North Dakota | |||
Business Acquisition [Line Items] | |||
Assets acquired, evaluated | 140,025 | 115,589 | |
Assets acquired, unevaluated | 78,093 | 81,367 | |
Total | $ 218,118 | $ 196,956 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Cash consideration paid | $ 218,118 | $ 196,956 | $ 102,086 | ||
Assets acquired, unevaluated | 78,093 | 59,460 | 50,224 | ||
Assets acquired, evaluated | 140,025 | 137,496 | 51,862 | ||
Proceeds from sale of oil and gas properties, net | 3,123 | 125 | 111,024 | ||
Gain on sale of oil and gas properties, net | $ 0 | $ 0 | 94,551 | ||
Delaware Basin | |||||
Business Acquisition [Line Items] | |||||
Cash consideration paid | $ 29,200 | ||||
Assets acquired, unevaluated | 20,500 | ||||
Assets acquired, evaluated | $ 8,700 | ||||
Southern Delaware Basin | |||||
Business Acquisition [Line Items] | |||||
Proceeds from sale of oil and gas properties, net | $ 156,700 | ||||
Proceeds from sale of oil and gas properties, cash portion | 111,100 | ||||
Proceeds from sale of oil and gas properties, value of shares | $ 45,600 | ||||
Sale of oil and gas properties, percentage of total proved reserves | 12.00% | ||||
Gain on sale of oil and gas properties, net | $ 94,600 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | May 31, 2019 | Jul. 27, 2018 |
Brigham Resources, LLC | ||
Derivative [Line Items] | ||
Cash collateral posted for existing swap contracts | $ 1.6 | $ 1.4 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Location and Fair Value of Derivative Instruments (Details) - Commodity swaps - Current derivative assets $ in Thousands | Dec. 31, 2018USD ($) |
Derivative assets: | |
Gross Amount Recognized | $ 1,057 |
Less Group Amount of Offset | 0 |
Net Amount Recognized | $ 1,057 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Gains (Losses) on Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Realized gain (loss) | $ 470 | $ (754) | $ 0 |
Unrealized gain (loss) | (1,038) | 1,178 | (121) |
(Loss) gain on derivative instruments, net | $ (568) | $ 424 | $ (121) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring $ in Thousands | Dec. 31, 2018USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative assets | $ 1,057 |
Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative assets | 0 |
Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative assets | 1,057 |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative assets | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |||
Available for sale securities, aggregate cost | $ 3,400 | ||
Available-for-sale securities, unrealized gains | $ 100 | 700 | |
Fair value of available for sale securities | 4,100 | ||
Available for sale securities distributed | 3,300 | ||
Proceeds from sale of equity securities | $ 0 | 933 | 17,896 |
Gain on sale and distribution of equity securities | $ 0 | $ 823 | $ (4,222) |
Long-Term Debt (Details)
Long-Term Debt (Details) | May 16, 2019 | May 07, 2019USD ($) | Jul. 27, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 25, 2020USD ($) | Apr. 17, 2019USD ($) | Jul. 26, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||
Unamortized debt issuance costs written off | $ 4,000,000 | |||||||||
Loss on extinguishment of debt | 6,900,000 | $ 6,892,000 | $ 0 | $ 0 | ||||||
Prepayment premium paid | 2,091,000 | $ 0 | $ 0 | |||||||
Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, borrowing base | $ 125,000,000 | |||||||||
Prepayment premium paid | 2,100,000 | |||||||||
Legal fees paid | $ 800,000 | |||||||||
Term Loan Facility | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 4.50% | |||||||||
Term Loan Facility | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 5.50% | |||||||||
Term Loan Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, floor (as a percent) | 1.00% | |||||||||
Delayed Draw Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, borrowing base | $ 75,000,000 | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, borrowing base | $ 150,000,000 | |||||||||
Line of credit facility available | 70,000,000 | |||||||||
Unamortized debt issuance costs written off | $ 300,000 | |||||||||
Long-term debt outstanding | 70,000,000 | |||||||||
Revolving Credit Facility | Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, borrowing base | $ 10,000,000 | |||||||||
Brigham Resources, LLC | New Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, borrowing base | $ 150,000,000 | $ 135,000,000 | ||||||||
Debt instrument, covenant, current ratio, minimum | 1 | |||||||||
Debt instrument, covenant, total net funded debt to consolidated EBITDA ratio, maximum | 4 | |||||||||
Brigham Resources, LLC | New Revolving Credit Facility | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee, percentage | 0.375% | |||||||||
Brigham Resources, LLC | New Revolving Credit Facility | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee, percentage | 0.50% | |||||||||
Brigham Resources, LLC | New Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.75% | |||||||||
Brigham Resources, LLC | New Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 2.75% | |||||||||
Brigham Resources, LLC | New Revolving Credit Facility | Adjusted Base Rate | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 0.75% | |||||||||
Brigham Resources, LLC | New Revolving Credit Facility | Adjusted Base Rate | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.75% | |||||||||
Subsequent Event | New Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, borrowing base | $ 180,000,000 |
Shareholders' and Members' Eq_3
Shareholders' and Members' Equity - Narrative (Details) | Apr. 23, 2019shares | May 08, 2015vote$ / sharesshares | Apr. 05, 2013vote$ / sharesshares | Dec. 31, 2019vote$ / sharesshares | Dec. 31, 2018USD ($)classshares | Dec. 31, 2017USD ($)shares | Apr. 17, 2019$ / shares | Dec. 31, 2014shares |
Class A Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock outstanding (in shares) | 34,040,934 | |||||||
Number of votes per share (vote) | vote | 1 | |||||||
Share price (in dollars per share) | $ / shares | $ 18 | |||||||
Class B Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock outstanding (in shares) | 22,847,045 | |||||||
Number of votes per share (vote) | vote | 1 | |||||||
Series A Common Units | ||||||||
Class of Stock [Line Items] | ||||||||
Number of votes per share (vote) | vote | 1 | |||||||
Units subscriptions issued (in shares) | 64,840,000 | |||||||
Share price (in dollars per share) | $ / shares | $ 10 | |||||||
Purchase period of units | 5 years | |||||||
Liquidation preference cumulative return in addition to total invested capital (as a percent) | 7.00% | |||||||
Series A-M Units | ||||||||
Class of Stock [Line Items] | ||||||||
Share price (in dollars per share) | $ / shares | $ 10 | |||||||
Sale of stock, number of shares issued (in shares) | 160,000 | 460,000 | ||||||
Units available for issuance (in shares) | 300,000 | |||||||
Units issued (in shares) | 300,000 | |||||||
Liquidation preference cumulative return in addition to total invested capital (as a percent) | 7.00% | |||||||
Award vesting percentage at grant (as a percent) | 100.00% | |||||||
Series A-Z Units | ||||||||
Class of Stock [Line Items] | ||||||||
Number of votes per share (vote) | vote | 1 | |||||||
Units subscriptions issued (in shares) | 41,176,471 | |||||||
Share price (in dollars per share) | $ / shares | $ 8.50 | |||||||
Units issued (in shares) | 5,411,764 | 4,352,941 | ||||||
Proceeds from issuance of common limited partners units | $ | $ 45,999,995 | $ 37,000,002 | ||||||
Liquidation preference cumulative return in addition to total invested capital (as a percent) | 7.00% | |||||||
Performance-Based Restricted Stock Units | ||||||||
Class of Stock [Line Items] | ||||||||
Shares granted during period (in shares) | 753,546 | 753,546 | ||||||
Restricted Incentive Units | ||||||||
Class of Stock [Line Items] | ||||||||
Award vesting percentage at grant (as a percent) | 20.00% | |||||||
Number of classes of restricted units | class | 8 | |||||||
Restricted units, shares authorized | 120,000 | |||||||
Restricted Incentive Units | Series M Units | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted units, shares authorized | 10,000 | |||||||
Shares vested during period (in shares) | 30,904 | 30,080 | ||||||
Restricted Incentive Units | Series M Units, M 1-4 | ||||||||
Class of Stock [Line Items] | ||||||||
Shares vested during period (in shares) | 7,726 | 7,520 | ||||||
Restricted Incentive Units | Series Z Units, Z 1-4 | ||||||||
Class of Stock [Line Items] | ||||||||
Shares vested during period (in shares) | 3,808 | 2,596 | ||||||
Restricted Incentive Units | Series Z Units | ||||||||
Class of Stock [Line Items] | ||||||||
Shares vested during period (in shares) | 15,232 | 10,386 | ||||||
Restricted Incentive Units | Series M Units, M-1 | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted units, threshold value | $ | $ 0 | |||||||
Restricted Incentive Units | Series M Units, M-2 | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted units, threshold value | $ | 2.25 | |||||||
Restricted Incentive Units | Series M Units, M-3 | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted units, threshold value | $ | 6.50 | |||||||
Restricted Incentive Units | Series M Units, M-4 | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted units, threshold value | $ | 14 | |||||||
Restricted Incentive Units | Series Z Units, Z-1 | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted units, threshold value | $ | 0 | |||||||
Restricted Incentive Units | Series Z Units, Z-2 | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted units, threshold value | $ | 1.91 | |||||||
Restricted Incentive Units | Series Z Units, Z-3 | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted units, threshold value | $ | 5.53 | |||||||
Restricted Incentive Units | Series Z Units, Z-4 | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted units, threshold value | $ | $ 11.90 |
Shareholders' and Members' Eq_4
Shareholders' and Members' Equity - Schedule of Earnings per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Apr. 16, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||||
Basic net income attributable to Brigham Minerals, Inc. shareholders | $ 848 | $ 6,053 | $ 6,901 | $ 1,839 | $ 0 | ||||||||
Less: net income attributable to Brigham Minerals, Inc. shareholders pre-IPO | (848) | 0 | 0 | ||||||||||
Basic net income attributable to Brigham Minerals, Inc. shareholders post-IPO | $ 6,053 | $ 0 | $ 0 | ||||||||||
Denominator: | |||||||||||||
Basic weighted average shares outstanding (in shares) | 22,870 | 0 | 0 | ||||||||||
Basic EPS attributable to Brigham Minerals, Inc. stockholders (in dollars per share) | $ 0.20 | $ 0.14 | $ (0.12) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.26 | $ 0 | $ 0 | ||
Numerator: | |||||||||||||
Diluted net income attributable to Brigham Minerals, Inc. shareholders | $ 6,053 | $ 0 | $ 0 | ||||||||||
Denominator: | |||||||||||||
Basic weighted average shares outstanding (in shares) | 22,870 | 0 | 0 | ||||||||||
Diluted weighted average shares outstanding (in shares) | 22,870 | 0 | 0 | ||||||||||
Diluted EPS attributable to Brigham Minerals, Inc. stockholders (in dollars per share) | $ 0.20 | $ 0.14 | $ (0.12) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.26 | $ 0 | $ 0 |
Shareholders' and Members' Eq_5
Shareholders' and Members' Equity - Schedule of Restricted Stock Activity (Details) - Restricted Incentive Units - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Series M Units, M-1 | ||
Number of Incentive Units | ||
Beginning balance (in shares) | 7,520 | 7,520 |
Issuances (in shares) | 1,030 | 0 |
Forfeitures (in shares) | 0 | 0 |
Ending balance (in shares) | 8,550 | 7,520 |
Series M Units, M-2 | ||
Number of Incentive Units | ||
Beginning balance (in shares) | 7,520 | 7,520 |
Issuances (in shares) | 1,030 | 0 |
Forfeitures (in shares) | 0 | 0 |
Ending balance (in shares) | 8,550 | 7,520 |
Series M Units, M-3 | ||
Number of Incentive Units | ||
Beginning balance (in shares) | 7,520 | 7,520 |
Issuances (in shares) | 1,030 | 0 |
Forfeitures (in shares) | 0 | 0 |
Ending balance (in shares) | 8,550 | 7,520 |
Series M Units, M-4 | ||
Number of Incentive Units | ||
Beginning balance (in shares) | 7,520 | 7,520 |
Issuances (in shares) | 1,030 | 0 |
Forfeitures (in shares) | 0 | 0 |
Ending balance (in shares) | 8,550 | 7,520 |
Series M Units | ||
Number of Incentive Units | ||
Beginning balance (in shares) | 30,080 | 30,080 |
Issuances (in shares) | 4,120 | 0 |
Forfeitures (in shares) | 0 | 0 |
Ending balance (in shares) | 34,200 | 30,080 |
Series Z Units, Z-1 | ||
Number of Incentive Units | ||
Beginning balance (in shares) | 4,313 | 4,328 |
Issuances (in shares) | 485 | 0 |
Forfeitures (in shares) | (105) | (15) |
Ending balance (in shares) | 4,693 | 4,313 |
Series Z Units, Z-2 | ||
Number of Incentive Units | ||
Beginning balance (in shares) | 4,313 | 4,328 |
Issuances (in shares) | 485 | 0 |
Forfeitures (in shares) | (105) | (15) |
Ending balance (in shares) | 4,693 | 4,313 |
Series Z Units, Z-3 | ||
Number of Incentive Units | ||
Beginning balance (in shares) | 4,313 | 4,328 |
Issuances (in shares) | 485 | 0 |
Forfeitures (in shares) | (105) | (15) |
Ending balance (in shares) | 4,693 | 4,313 |
Series Z Units, Z-4 | ||
Number of Incentive Units | ||
Beginning balance (in shares) | 4,313 | 4,328 |
Issuances (in shares) | 485 | 0 |
Forfeitures (in shares) | (105) | (15) |
Ending balance (in shares) | 4,693 | 4,313 |
Series Z Units | ||
Number of Incentive Units | ||
Beginning balance (in shares) | 17,252 | 17,312 |
Issuances (in shares) | 1,940 | 0 |
Forfeitures (in shares) | (420) | (60) |
Ending balance (in shares) | 18,772 | 17,252 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - $ / shares | Apr. 23, 2019 | Apr. 17, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | May 08, 2015 |
Class B Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion of stock, shares received (in shares) | 1 | ||||
Class A Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion of stock, shares received (in shares) | 1 | ||||
Incentive Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 120,000 | ||||
Award vesting percentage at grant (as a percent) | 20.00% | ||||
Award vesting percentage on each anniversary (as a percent) | 20.00% | ||||
Conversion of stock, shares received (in shares) | 1 | ||||
Shares granted during period, grant date fair value (in dollars per share) | $ 10.04 | ||||
Shares granted during period (in shares) | 354,000 | ||||
Shares vested during period (in shares) | 3,060,000 | 0 | |||
RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted during period, grant date fair value (in dollars per share) | $ 21.25 | ||||
Shares granted during period (in shares) | 312,189 | ||||
Shares vested during period (in shares) | 152,742 | ||||
Shares forfeited or converted (in shares) | 10,991 | ||||
Vesting increments | 0.3334% | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted during period, grant date fair value (in dollars per share) | $ 21.25 | ||||
Shares granted during period (in shares) | 598,891 | ||||
Shares vested during period (in shares) | 183,082 | ||||
Shares forfeited (in shares) | 0 | ||||
Shares withheld to satisfy employee tax withholding obligations (in shares) | 59,111 | ||||
Performance-Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted during period, grant date fair value (in dollars per share) | $ 20.36 | ||||
Shares granted during period (in shares) | 753,546 | 753,546 | |||
Performance shares earned (in shares) | 451,933 | ||||
Performance-Based Restricted Stock Units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage at grant (as a percent) | 0.00% | ||||
Performance-Based Restricted Stock Units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage at grant (as a percent) | 200.00% | ||||
Long Term Incentive Plan | Class A Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 5,999,600 | ||||
Shares available for future grants (in shares) | 4,416,069 |
Temporary Equity (Details)
Temporary Equity (Details) $ / shares in Units, $ in Thousands | Apr. 17, 2019USD ($)vote$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($)vote$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Beginning balance | $ 518,000 | $ 518,000 | |||
Conversion of Class B shares to Class A shares | (104,390) | ||||
Net income attribution | 9,646 | $ 9,858 | $ 0 | $ 0 | |
Distribution to holders of temporary equity | (20,321) | ||||
Adjustment of temporary equity to redemption amount | 51,572 | ||||
Ending balance | $ 454,507 | $ 454,507 | |||
Class B Common Stock | |||||
Temporary Equity [Line Items] | |||||
Number of votes per share (vote) | vote | 1 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Temporary equity (in shares) | shares | 28,777,802 | 22,847,045 | 22,847,045 | ||
Temporary equity, share price (in dollars per share) | $ / shares | $ 19.89 | $ 19.89 | |||
Common Class A | |||||
Temporary Equity [Line Items] | |||||
Number of votes per share (vote) | vote | 1 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Share price (in dollars per share) | $ / shares | $ 18 | ||||
Existing Owners of Brigham Minerals | |||||
Temporary Equity [Line Items] | |||||
Sale of stock, ownership percentage | 10.50% | ||||
Existing Owners of Brigham Minerals | Class B Common Stock | |||||
Temporary Equity [Line Items] | |||||
Sale of stock, ownership percentage | 40.20% | 56.70% | |||
Number of votes per share (vote) | vote | 1 | ||||
Existing Owners of Brigham Minerals | Common Class A | |||||
Temporary Equity [Line Items] | |||||
Sale of stock, ownership percentage | 24.20% | ||||
Initial Public Offering | Common Class A | |||||
Temporary Equity [Line Items] | |||||
Sale of stock, ownership percentage | 75.80% | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Share price (in dollars per share) | $ / shares | $ 18 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Incentive Units - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Incentive Units | ||
Beginning balance (in shares) | 3,272 | 2,918 |
Granted (in shares) | 354 | |
Vested (in shares) | (3,060) | 0 |
Ending balance (in shares) | 212 | 3,272 |
Grant-date Fair Value | ||
Beginning balance (in dollars per share) | $ 1.49 | $ 0.45 |
Grant-date fair value, Granted (in dollars per share) | 10.04 | |
Grant-date fair value, Vested (in dollars per share) | 0.89 | 0 |
Ending balance (in dollars per share) | $ 10.04 | $ 1.49 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted Average Assumptions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Incentive Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per incentive unit (in dollars per share) | $ 10.04 | $ 1.49 | $ 0.45 |
Performance-Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (as a percent) | 30.00% | ||
Expected dividend yield | $ 0.081 | ||
Risk-free interest rates | 2.30% | ||
2018 Awards | Incentive Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (as a percent) | 28.00% | ||
Expected dividend yield | $ 0 | ||
Expected term (in years) | 8 months 12 days | ||
Risk-free interest rates | 2.45% | ||
Weighted-average grant date fair value per incentive unit (in dollars per share) | $ 10.04 | ||
2015 Awards | Incentive Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (as a percent) | 33.00% | ||
Expected dividend yield | $ 0 | ||
Expected term (in years) | 3 years 8 months 12 days | ||
Risk-free interest rates | 1.07% | ||
Weighted-average grant date fair value per incentive unit (in dollars per share) | $ 0.03 | ||
2013 Awards | Incentive Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (as a percent) | 40.00% | ||
Expected dividend yield | $ 0 | ||
Expected term (in years) | 6 years 2 months 12 days | ||
Risk-free interest rates | 0.94% | ||
Weighted-average grant date fair value per incentive unit (in dollars per share) | $ 1.51 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Compensation Expense and Future Stock Compensation Expense (Details) - USD ($) $ in Thousands | Apr. 23, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Capitalized share-based compensation | $ (3,818) | $ 0 | $ 0 | |
Total share-based compensation expense | 10,049 | 0 | 0 | |
Future share-based compensation expense | 19,333 | |||
2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 9,400 | |||
2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 9,073 | |||
2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 860 | |||
Incentive Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 2,904 | $ 0 | 0 | |
Compensation expense, cumulative effect adjustment at IPO | $ 2,000 | |||
Shares vested during period (in shares) | 3,060,000 | 0 | ||
Future share-based compensation expense | $ 1,958 | |||
Incentive Units | 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 712 | |||
Incentive Units | 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 712 | |||
Incentive Units | 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 534 | |||
RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 3,972 | $ 0 | 0 | |
Compensation expense, cumulative effect adjustment at IPO | 3,200 | |||
Shares vested during period (in shares) | 152,742 | |||
Future share-based compensation expense | 2,430 | |||
RSAs | 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 1,052 | |||
RSAs | 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 1,052 | |||
RSAs | 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 326 | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 4,630 | 0 | 0 | |
Shares vested during period (in shares) | 183,082 | |||
Future share-based compensation expense | $ 8,107 | |||
RSUs | 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 4,217 | |||
RSUs | 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 3,890 | |||
RSUs | 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 0 | |||
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 2,361 | $ 0 | $ 0 | |
Future share-based compensation expense | 6,838 | |||
PSUs | 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 3,419 | |||
PSUs | 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | 3,419 | |||
PSUs | 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future share-based compensation expense | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 16, 2019 | Apr. 17, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2018 |
Operating Loss Carryforwards [Line Items] | ||||||||||
Net deferred tax liability resulting from corporate reorganization | $ 198 | $ 198 | $ 3,684 | $ 3,100 | ||||||
Deferred tax asset arising from the IPO | $ 13,700 | 13,664 | ||||||||
Effective income tax rate (as a percent) | 11.00% | |||||||||
Total income tax provision | $ 2,679 | $ 327 | $ 1,008 | |||||||
Federal statutory tax rate (as a percent) | 21.00% | |||||||||
Deferred tax assets | 18,800 | $ 18,800 | ||||||||
December Offering | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Deferred tax asset arising from the IPO | $ 9,508 | |||||||||
Deferred tax asset arising from issuance of common stock in the December 2019 Offering | $ 9,500 | |||||||||
Class A Common Stock | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Share price (in dollars per share) | $ 18 | |||||||||
Class A Common Stock | Initial Public Offering | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Sale of stock, number of shares issued (in shares) | 16,675,000 | |||||||||
Share price (in dollars per share) | $ 18 | |||||||||
Class A Common Stock | December Offering | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Sale of stock, number of shares issued (in shares) | 12,650,000 | |||||||||
Class A Common Stock | December Offering, Company | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Sale of stock, number of shares issued (in shares) | 6,000,000 | |||||||||
Class A Common Stock | December Offering, Selling Shareholders | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Sale of stock, number of shares issued (in shares) | 6,650,000 | |||||||||
Share price (in dollars per share) | $ 18.10 | |||||||||
Class A Common Stock | December Offering, Equivalent Units Issued | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Sale of stock, number of shares issued (in shares) | 5,496,813 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current (benefit)/expense | $ 692 | $ (23) | $ 713 |
Deferred (benefit)/expense | 63 | (138) | 295 |
Current expense | 1,322 | 114 | 0 |
Deferred expense | 602 | 374 | 0 |
Total income tax provision | 2,679 | 327 | 1,008 |
Total current income taxes | 2,014 | 91 | 713 |
Total deferred income taxes | $ 665 | $ 236 | $ 295 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense With Income Tax Provision (Details) - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ (24,318) | $ (33,142) | $ (116,620) | |
Less: income before income taxes attributable to predecessor | (5,118) | (30,805) | (116,620) | |
Less: income before income taxes attributable to temporary equity | $ (9,646) | (9,858) | 0 | 0 |
Income before income taxes attributable to shareholders | 9,342 | 2,337 | 0 | |
Income tax at the federal statutory rate | 1,962 | 491 | 0 | |
State income taxes, net of federal benefit | 717 | (150) | 1,008 | |
Percentage depletion in excess of basis | 0 | (14) | 0 | |
Total income tax provision | $ 2,679 | $ 327 | $ 1,008 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 31, 2018 |
Deferred Tax Assets, Gross [Abstract] | |||
Investment in subsidiary | $ 19,021 | $ 0 | |
Total deferred tax assets: | 19,021 | 0 | |
Deferred tax liabilities: | |||
Oil and gas properties | (198) | (208) | |
Investment in subsidiary | 0 | (3,476) | |
Net noncurrent deferred tax liabilities | $ (198) | $ (3,684) | $ (3,100) |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 600 | $ 300 | $ 200 |
2020 | 1,000 | ||
2021 | 1,345 | ||
2022 | 1,419 | ||
2023 | 1,492 | ||
2024 | 1,566 | ||
2025 and Thereafter | 4,312 | ||
Total | $ 11,134 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Land Brokerage Services | Brigham Land Management | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, amount | $ 0.1 | $ 0.1 | $ 0.6 | |
Leasing of Acreage Arrangement | Ben M. Brigham | ||||
Related Party Transaction [Line Items] | ||||
Amount received from related party | $ 0.4 | 0 | $ 0.6 | |
Borrowings From Related Party | Brigham Operating | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, amount | $ 7 | |||
Related party transaction, interest rate (as a percent) | 7.00% |
Quarterly Financial Informati_3
Quarterly Financial Information-Unaudited Quarterly Financial Information-Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 33,614 | $ 25,107 | $ 24,529 | $ 18,265 | $ 17,591 | $ 18,701 | $ 16,889 | $ 14,083 | $ 101,515 | $ 67,264 | $ 40,908 |
Income from operations | 14,362 | 9,115 | 5,034 | 8,707 | 8,732 | 11,716 | 10,564 | 8,219 | 37,218 | 39,231 | 121,214 |
Net income | 12,346 | 8,464 | (3,207) | 4,036 | 7,114 | 8,153 | 9,351 | 8,197 | $ 21,639 | $ 32,815 | $ 115,612 |
Net income attributable to shareholders | $ 5,077 | $ 3,146 | $ (1,856) | $ 534 | $ 948 | $ 891 | $ 0 | $ 0 | |||
Basic EPS attributable to Brigham Minerals, Inc. stockholders (in dollars per share) | $ 0.20 | $ 0.14 | $ (0.12) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.26 | $ 0 | $ 0 |
Diluted EPS attributable to Brigham Minerals, Inc. stockholders (in dollars per share) | $ 0.20 | $ 0.14 | $ (0.12) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.26 | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) | Feb. 27, 2020 | Feb. 25, 2020 |
New Revolving Credit Facility | ||
Subsequent Event [Line Items] | ||
Line of credit, borrowing base | $ 180,000,000 | |
Common Class A | ||
Subsequent Event [Line Items] | ||
Dividends declared (in dollars per share) | $ 0.38 |
Reserve and Related Financial_3
Reserve and Related Financial Data (SMOG) - Unaudited - Schedule of Proved Reserve Quantities (Details) MMcf in Thousands, MBoe in Thousands, MBbls in Thousands | 12 Months Ended | ||
Dec. 31, 2019MBoeMBblsMMcf | Dec. 31, 2018MBoeMBblsMMcf | Dec. 31, 2017MBoeMBblsMMcf | |
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Beginning balance | MBoe | 26,741 | 19,104 | 13,363 |
Sales of minerals-in-place | MBoe | (409) | 0 | (1,627) |
Extensions and discoveries | MBoe | 4,110 | 3,208 | 3,259 |
Acquisitions | MBoe | 7,651 | 7,354 | 4,820 |
Revisions of previous estimates | MBoe | (2,299) | 1,508 | (147) |
Production | MBoe | (2,706) | (1,417) | (858) |
Ending balance | MBoe | 33,088 | 26,741 | 19,104 |
Proved reserve quantities at December 31, 2019 attributable to temporary equity | MBoe | 13,289 | ||
Proved developed reserve quantities | MBoe | 17,957 | 11,588 | 6,160 |
Proved developed reserves at December 31, 2019 attributable to temporary equity | MBoe | 7,212 | ||
Proved undeveloped reserve quantities | MBoe | 15,131 | 15,153 | 12,944 |
Proved undeveloped reserves at December 31, 2019 attributable to temporary equity | MBoe | 6,077 | ||
Crude Oil (MBbl) | |||
Proved Developed and Undeveloped Reserves [Roll Forward] | |||
Beginning balance | 12,991 | 8,724 | 7,174 |
Sales of minerals-in-place | (182) | 0 | (1,291) |
Extensions and discoveries | 1,997 | 1,765 | 1,548 |
Acquisitions | 4,256 | 3,669 | 2,141 |
Revisions of previous estimates | (586) | 390 | 394 |
Production | (1,515) | (777) | (454) |
Ending balance | 16,961 | 12,991 | 8,724 |
Proved reserve quantities at December 31, 2019 attributable to temporary equity | 6,812 | ||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Proved developed reserve quantities | 9,924 | 6,067 | 2,804 |
Proved developed reserves at December 31, 2019 attributable to temporary equity | 3,986 | ||
Proved undeveloped reserve quantities | 7,037 | 6,924 | 5,920 |
Proved undeveloped reserves at December 31, 2019 attributable to temporary equity | 2,826 | ||
Natural Gas (Mmcf) | |||
Proved Developed and Undeveloped Reserves [Roll Forward] | |||
Beginning balance | MMcf | 51,796 | 38,401 | 22,991 |
Sales of minerals-in-place | MMcf | (697) | 0 | (815) |
Extensions and discoveries | MMcf | 7,780 | 5,285 | 6,012 |
Acquisitions | MMcf | 13,053 | 13,862 | 9,380 |
Revisions of previous estimates | MMcf | (5,495) | 3,245 | (2,601) |
Production | MMcf | (4,707) | (2,507) | (1,768) |
Ending balance | MMcf | 61,730 | 51,796 | 38,401 |
Proved reserve quantities at December 31, 2019 attributable to temporary equity | MMcf | 24,792 | ||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Proved developed reserve quantities | MMcf | 33,232 | 21,735 | 13,028 |
Proved developed reserves at December 31, 2019 attributable to temporary equity | MMcf | 13,346 | ||
Proved undeveloped reserve quantities | MMcf | 28,498 | 30,061 | 25,373 |
Proved undeveloped reserves at December 31, 2019 attributable to temporary equity | MMcf | 11,445 | ||
NGL (MBbl) | |||
Proved Developed and Undeveloped Reserves [Roll Forward] | |||
Beginning balance | 5,117 | 3,980 | 2,356 |
Sales of minerals-in-place | (110) | 0 | (200) |
Extensions and discoveries | 817 | 562 | 709 |
Acquisitions | 1,218 | 1,374 | 1,116 |
Revisions of previous estimates | (797) | 577 | (108) |
Production | (407) | (222) | (109) |
Ending balance | 5,838 | 5,117 | 3,980 |
Proved reserve quantities at December 31, 2019 attributable to temporary equity | 2,345 | ||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Proved developed reserve quantities | 2,494 | 1,898 | 1,185 |
Proved developed reserves at December 31, 2019 attributable to temporary equity | 1,002 | ||
Proved undeveloped reserve quantities | 3,344 | 3,219 | 2,795 |
Proved undeveloped reserves at December 31, 2019 attributable to temporary equity | 1,343 |
Reserve and Related Financial_4
Reserve and Related Financial Data (SMOG) - Unaudited - Narrative (Details) MBoe in Thousands | 12 Months Ended | ||
Dec. 31, 2019MBoewell | Dec. 31, 2018MBoewell | Dec. 31, 2017MBoewell | |
Reserve Quantities [Line Items] | |||
Proved developed reserve quantities | 7,651 | 7,354 | 4,820 |
Divestiture through sale of mineral and royalty interests | 409 | 0 | 1,627 |
Extensions and discoveries | 4,110 | 3,208 | 3,259 |
Number of well locations | well | 900 | 555 | 854 |
Revisions of previous estimates | 2,299 | (1,508) | 147 |
Permian, DJ, Anadarko and Williston Basins | |||
Reserve Quantities [Line Items] | |||
Additional proved reserves | 7,242 | ||
Proved developed reserve quantities | 7,651 | 7,354 | 4,820 |
Divestiture through sale of mineral and royalty interests | 409 | ||
Permian Basin | |||
Reserve Quantities [Line Items] | |||
Divestiture through sale of mineral and royalty interests | 1,627 | ||
Revisions To Pricing | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | (902) | 536 | |
Revisions Attributable to Operator Development Timing | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | (1,397) | (1,100) | (2,434) |
Revisions Associated With Unit Configuration and EUR Adjustments | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | (944) | ||
Revisions Attributable to Increased Recovery | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | 2,581 | ||
Minimum | |||
Reserve Quantities [Line Items] | |||
Average sales price, percent | 13.00% | ||
Maximum | |||
Reserve Quantities [Line Items] | |||
Average sales price, percent | 30.00% |
Reserve and Related Financial_5
Reserve and Related Financial Data (SMOG) - Unaudited - Standardized Measure of Discounted Future Net Cash Flow (Details) MBoe in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)MBoe$ / bbl$ / MMBTU | Dec. 31, 2018USD ($)MBoe$ / bbl$ / MMBTU | Dec. 31, 2017USD ($)MBoe$ / bbl$ / MMBTU | Dec. 31, 2016USD ($) | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Proved developed reserve quantities | MBoe | 17,957 | 11,588 | 6,160 | |
Future crude oil, natural gas, and NGL sales | $ 1,042,118 | $ 1,049,141 | $ 595,874 | |
Future severance tax and ad valorem taxes | (73,627) | (70,248) | (40,225) | |
Future income tax expense | (143,599) | (144,421) | (1,151) | |
Future net cash flows | 824,892 | 834,472 | 554,498 | |
10% annual discount | (359,258) | (391,013) | (238,030) | |
Standardized measure of discounted future net cash flows | 465,634 | 443,459 | 316,468 | $ 185,752 |
Standardized measure of discounted future net cash flows attributable to temporary equity | $ 186,999 | $ 0 | $ 0 | |
Oil (per Bbl) | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Prices used in determination of standardized measure (in dollars per unit) | $ / bbl | 51.01 | 61.31 | 47.80 | |
Natural gas (per Mcf) | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Prices used in determination of standardized measure (in dollars per unit) | $ / MMBTU | 1.51 | 2.51 | 2.74 | |
NGLs (per Bbl) | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Prices used in determination of standardized measure (in dollars per unit) | $ / bbl | 14.39 | 23.98 | 18.56 |
Reserve and Related Financial_6
Reserve and Related Financial Data (SMOG) - Unaudited - Principal Sources of Change in Standardized Measure of Discounted Net Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Roll Forward] | |||
Standardized measure of discounted future net cash flows, beginning of the year | $ 443,459 | $ 316,468 | $ 185,752 |
Sales, less production costs | (86,492) | (52,278) | (26,711) |
Revisions of previous quantity estimates | (41,539) | (22,942) | 4,894 |
Extensions, discoveries, and other additions | 69,057 | 71,668 | 56,511 |
Net change in prices and production costs | (99,660) | 71,770 | 30,565 |
Accretion of discount | 51,949 | 31,713 | 18,612 |
Purchase of reserves in place | 137,819 | 148,580 | 79,190 |
Divestitures of reserves in place | (5,783) | 0 | (26,742) |
Net change in taxes | (5,739) | (75,369) | (298) |
Timing differences and other | 2,563 | (46,151) | (5,305) |
Standardized measure of discounted future net cash flows, end of the year | $ 465,634 | $ 443,459 | $ 316,468 |
Reserve and Related Financial_7
Reserve and Related Financial Data (SMOG) - Unaudited - Capitalized Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Extractive Industries [Abstract] | |||
Not subject to depletion | $ 291,664 | $ 228,151 | $ 168,691 |
Subject to depletion | 449,061 | 289,851 | 152,354 |
Total oil and gas properties, at cost | 740,725 | 518,002 | 321,045 |
Less accumulated depreciation, depletion, and amortization | (61,103) | (27,628) | (14,210) |
Total oil and gas properties, net | $ 679,622 | $ 490,374 | $ 306,835 |
Reserve and Related Financial_8
Reserve and Related Financial Data (SMOG) - Unaudited - Costs Incurred In Acquisition of Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Extractive Industries [Abstract] | |||
Unevaluated | $ 78,093 | $ 59,460 | $ 50,224 |
Evaluated | 140,025 | 137,496 | 51,862 |
Total | $ 218,118 | $ 196,956 | $ 102,086 |