Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38870 | |
Entity Registrant Name | Brigham Minerals, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-1106283 | |
Entity Address, Address Line One | 5914 W. Courtyard Drive | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Austin | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78730 | |
City Area Code | 512 | |
Local Phone Number | 220-6350 | |
Title of 12(b) Security | Class A common stock, par value $0.01 | |
Trading Symbol | MNRL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001745797 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 43,811,302 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 12,910,663 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 5,560 | $ 9,144 |
Accounts receivable | 21,540 | 17,632 |
Prepaid expenses and other | 1,753 | 3,693 |
Total current assets | 28,853 | 30,469 |
Non-current assets: | ||
Unevaluated property | 333,742 | 325,091 |
Evaluated property | 503,133 | 488,301 |
Less accumulated depreciation, depletion, and amortization | (198,854) | (189,546) |
Total oil and gas properties, net | 638,021 | 623,846 |
Other property and equipment | 5,588 | 5,587 |
Less accumulated depreciation | (4,691) | (4,632) |
Other property and equipment, net | 897 | 955 |
Deferred tax asset | 23,704 | 24,920 |
Other assets, net | 714 | 771 |
Total assets | 692,189 | 680,961 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 6,950 | 7,905 |
Total current liabilities | 6,950 | 7,905 |
Long-term bank debt | 32,000 | 20,000 |
Other non-current liabilities | 1,020 | 1,126 |
Temporary equity | 0 | 146,280 |
Equity: | ||
Preferred stock, $0.01 par value; 50,000,000 authorized; no shares issued and outstanding at March 31, 2021 and December 31, 2020 | 0 | 0 |
Additional paid-in capital | 552,008 | 601,129 |
Accumulated deficit | (95,584) | (92,392) |
Treasury stock, at cost; 436,630 shares at March 31, 2021 and December 31, 2020 | (3,527) | (3,527) |
Total equity attributable to Brigham Minerals, Inc. | 453,338 | 505,650 |
Non-controlling interest | 198,881 | 0 |
Total equity | 652,219 | 505,650 |
Total liabilities and shareholders' equity | 692,189 | 680,961 |
Class A Common Stock | ||
Equity: | ||
Common stock | 441 | 440 |
Class B Common Stock | ||
Equity: | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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 |
Treasury stock (in shares) | 436,630 | 436,630 |
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) | 44,102,188 | 43,995,124 |
Common stock, shares outstanding (in shares) | 43,665,558 | 43,558,494 |
Treasury stock (in shares) | 436,630 | |
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) | 13,056,111 | 13,167,687 |
Common stock, shares outstanding (in shares) | 13,056,111 | 13,167,687 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUES | ||
Total revenues | $ 33,773 | $ 32,280 |
OPERATING EXPENSES | ||
Gathering, transportation and marketing | 1,733 | 1,779 |
Severance and ad valorem taxes | 1,833 | 1,752 |
Depreciation, depletion, and amortization | 9,367 | 12,826 |
General and administrative | 5,442 | 5,510 |
Total operating expenses | 18,375 | 21,867 |
INCOME FROM OPERATIONS | 15,398 | 10,413 |
Interest expense, net | (267) | (32) |
Other income, net | 13 | 2 |
Income before income taxes | 15,144 | 10,383 |
Income tax expense | 3,073 | 1,582 |
NET INCOME | 12,071 | 8,801 |
Less: net income attributable to non-controlling interest | (3,475) | (4,095) |
Net income attributable to Brigham Minerals, Inc. shareholders | $ 8,596 | $ 4,706 |
NET INCOME PER COMMON SHARE | ||
Basic (in dollars per share) | $ 0.20 | $ 0.14 |
Diluted (in dollars per share) | $ 0.20 | $ 0.14 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||
Basic (in shares) | 43,515 | 33,979 |
Diluted (in shares) | 43,754 | 33,979 |
Mineral and royalty revenues | ||
REVENUES | ||
Total revenues | $ 32,176 | $ 28,374 |
Lease bonus and other revenues | ||
REVENUES | ||
Total revenues | $ 1,597 | $ 3,906 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock | Noncontrolling Interest | Class A Common Stock | Class A Common StockCommon Stock | Class B Common Stock | Class B Common StockCommon Stock |
Beginning balance (in shares) at Dec. 31, 2019 | 0 | 34,041,000 | 22,847,000 | ||||||
Beginning balance at Dec. 31, 2019 | $ 317,319 | $ 323,578 | $ (6,599) | $ 0 | $ 0 | $ 340 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Adjustment of temporary equity to carrying value | 206,017 | 206,017 | |||||||
Shares surrendered for tax withholdings on vested equity awards (in shares) | (7,000) | ||||||||
Conversion of shares of Class B Common Stock to Class A Common Stock (in shares) | 140,000 | (140,000) | |||||||
Conversion of shares of Class B Common Stock to Class A Common Stock | 1,526 | 1,524 | $ 2 | ||||||
Deferred tax asset arising (reduction) from conversion of shares of Class B Common Stock to Class A Common Stock | 204 | 204 | |||||||
Share-based compensation | 3,402 | 3,402 | |||||||
Dividends declared | (13,541) | (13,541) | |||||||
Net income | 4,706 | 4,706 | |||||||
Ending balance (in shares) at Mar. 31, 2020 | 0 | 34,174,000 | 22,707,000 | ||||||
Ending balance at Mar. 31, 2020 | 519,633 | 534,725 | (15,434) | $ 0 | 0 | $ 342 | $ 0 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 437,000 | 43,558,494 | 43,558,000 | 13,167,687 | 13,168,000 | ||||
Beginning balance at Dec. 31, 2020 | 505,650 | 601,129 | (92,392) | $ (3,527) | 0 | $ 440 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Adjustment of temporary equity to carrying value | (54,294) | (54,294) | |||||||
Reclassification from temporary equity to non-controlling interest | 202,496 | 202,496 | |||||||
Conversion of shares of Class B Common Stock to Class A Common Stock (in shares) | 112,000 | (112,000) | |||||||
Conversion of shares of Class B Common Stock to Class A Common Stock | 0 | 1,720 | (1,721) | $ 1 | |||||
Deferred tax asset arising (reduction) from conversion of shares of Class B Common Stock to Class A Common Stock | (480) | (480) | |||||||
Share-based compensation | 3,933 | 3,933 | |||||||
Restricted stock forfeited (in shares) | (4,000) | ||||||||
Dividends declared | (15,235) | (11,788) | (3,447) | ||||||
Net income | 10,149 | 8,596 | 1,553 | ||||||
Net income | 8,596 | ||||||||
Ending balance (in shares) at Mar. 31, 2021 | 437,000 | 43,665,558 | 43,666,000 | 13,056,111 | 13,056,000 | ||||
Ending balance at Mar. 31, 2021 | $ 652,219 | $ 552,008 | $ (95,584) | $ (3,527) | $ 198,881 | $ 441 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net income | $ 12,071 | $ 8,801 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 9,367 | 12,826 |
Share-based compensation expense | 2,300 | 1,884 |
Amortization of debt issuance costs | 58 | 98 |
Deferred income taxes | 736 | 2,440 |
Bad debt expense | 0 | 244 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | (3,908) | 5,298 |
Decrease (increase) in other current assets | 1,941 | (414) |
Decrease in other deferred charges | 0 | 2 |
Decrease in accounts payable and accrued liabilities | (484) | (3,720) |
Increase (decrease) in other long-term liabilities | 8 | (309) |
Net cash provided by operating activities | 22,089 | 27,150 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to oil and gas properties | (21,935) | (25,260) |
Additions to other fixed assets | (1) | (187) |
Proceeds from sale of oil and gas properties, net | 0 | 1,565 |
Net cash used in investing activities | (21,936) | (23,882) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowing of long-term debt | 12,000 | 0 |
Dividends paid | (11,336) | (12,969) |
Distribution to holders of non-controlling interest | (3,409) | (10,145) |
Debt issuance costs | (1) | (181) |
Payment of employee tax withholding for settlement of equity compensation awards | (991) | 0 |
Net cash used in financing activities | (3,737) | (23,295) |
Decrease in cash and cash equivalents and restricted cash | (3,584) | (20,027) |
Cash and cash equivalents and restricted cash, beginning of period | 9,144 | 51,133 |
Cash and cash equivalents and restricted cash, end of period | 5,560 | 31,106 |
Supplemental disclosure of noncash activity: | ||
Accrued capital expenditures | 61 | 220 |
Capitalized share-based compensation cost | 1,633 | 1,518 |
Temporary equity cumulative adjustment to redemption value | 54,294 | (206,017) |
Supplemental cash flow information: | ||
Cash (payments) for loan commitment fees and interest | (213) | (252) |
Tax refund received | $ 1,024 | $ 0 |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
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," “we," "us," "our," or the "Company"), a Delaware corporation, is a holding company whose sole material asset consists of a 77% interest in Brigham Minerals Holdings, LLC (“Brigham LLC”), which indirectly owns Brigham Minerals, LLC and Rearden Minerals, LLC (collectively, the “Minerals Subsidiaries”). The Minerals Subsidiaries acquire and actively manage a portfolio of mineral and royalty interests in the core of what we view as the most active, highly economic, liquids-rich resource plays across the continental United States. Brigham Minerals completed its initial public offering (the “IPO”) in April 2019 and a follow-on offering in December 2019 (the "December 2019 Offering"). Our portfolio is comprised of mineral and royalty interests across six of the most highly economic, liquids-rich resource plays in the continental United States, including the Delaware and Midland Basins in the Permian Basin in West Texas and New Mexico, the SCOOP and STACK plays in the Anadarko Basin in Oklahoma, the Denver-Julesburg (“DJ”) Basin in Colorado and Wyoming and the Williston Basin in North Dakota. Our highly technical approach towards mineral acquisitions in the geologic core of top-tier resource plays has purposefully led to a concentrated portfolio covering 37 of the most highly active counties for horizontal drilling in the continental United States. Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements of Brigham Minerals have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), except that, in accordance with the instructions to Form 10-Q, they do not include all of the notes required for financial statements prepared in conformity with U.S. GAAP. Accordingly, the accompanying unaudited interim financial statements should be read in conjunction with our audited financial statements included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on February 25, 2021 (the "Annual Report"). The unaudited interim financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for a fair representation. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2021. Brigham Minerals operates in one segment: oil and natural gas exploration and production. Brigham Minerals consolidates the financial results of Brigham LLC and its subsidiaries and reports the interest related to the portion of the units in Brigham LLC not owned by Brigham Minerals as temporary equity at December 31, 2020 and as non-controlling interest at March 31, 2021, which will reduce net income attributable to the holders of Brigham Minerals' Class A common stock. For more information, see "Note 9—Temporary equity and Non-controlling interest.” |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates These condensed consolidated financial statements and related notes are presented in accordance with GAAP. Preparation in accordance 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 condensed consolidated 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 condensed consolidated financial statements are based on a number of significant estimates including quantities of oil, natural gas and NGL 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’ year-end reserve estimates are audited by Cawley, Gillespie & Associates, Inc., an independent petroleum engineering firm. Quarterly reserve estimates are internally generated by our in-house engineering staff. Other items subject to significant estimates and assumptions include the carrying amount of oil and natural gas properties, share-based compensation costs, and revenue accruals. Significant Accounting Policies Significant accounting policies are disclosed in Brigham Minerals' audited consolidated and combined financial statements and notes for the year ended December 31, 2020, presented in the Annual Report. There have been no changes in such policies or the application of such policies during the three months ended March 31, 2021. Non-Controlling Interest As of March 31, 2021, the holders of Class B common stock no longer control a majority of the votes of the Company's board of directors (the "Board of Directors") through direct representation on the Board of Directors, and no longer control the determination of whether to make a cash payment upon each holder of Brigham LLC Unit's (each a "Brigham LLC Unit Holder") exercise of its Redemption Right (as hereinafter defined). As such, as of March 31, 2021, Brigham Minerals accounts for Brigham LLC Unit Holders' 23% interest in Brigham LLC not owned by Brigham Minerals as non-controlling interest. For further discussion, see “Note 9—Temporary equity and Non-controlling interest.” Accounts Receivable Brigham Minerals routinely reviews outstanding balances, assesses the financial strength of its operators and records a reserve for amounts not expected to be fully recovered. We did not record a reserve for bad debt for the three months ended March 31, 2021. We recorded a reserve for bad debt of $0.2 million for the three months ended March 31, 2020 which was included in general and administrative expenses. As of March 31, 2021 and December 31, 2020, accounts receivable was comprised of the following: (In thousands) March 31, 2021 December 31, 2020 Accounts receivable Oil and gas sales $ 22,341 $ 17,413 Reserve for bad debt (855) (855) Other 54 1,074 Total accounts receivable $ 21,540 $ 17,632 Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject Brigham Minerals to concentrations of credit risk consist of cash, accounts receivable, and its 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. Three Months Ended Customer (Operator) Name March 31, 2021 March 31, 2020 Exxon Mobil Corp 16 % 8 % Occidental Petroleum Corp 12 % 13 % Continental Resources Inc. 10 % 9 % Royal Dutch Shell PLC 9 % 16 % 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. For the three months ended March 31, 2021 and 2020, we received revenues from over 130 and 150 operators, respectively, with approximately 69% and 63% of revenues, respectively, coming from the top ten operators on our properties. Recently Issued Accounting Standards Not Yet Adopted Brigham Minerals’ status as an emerging growth company ("EGC") under Section 107 of the Jumpstart Our Business Startups Act of 2012 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, Brigham Minerals will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for private companies. If Brigham Minerals loses its status as an EGC before the adoption dates for private companies, Brigham Minerals will be required to accelerate the adoption of new or revised accounting standards. In February 2016, the Financial Accounting Standards Board (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, 2022 and interim periods within the fiscal year ending December 31, 2023 yet early adoption is permitted. We are currently evaluating the impact that the adoption of this update will have on our condensed consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses. In May 2019, ASU 2016-13 was subsequently amended by ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses and ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. ASU 2016-13, as amended, affects trade receivables, financial assets and certain other instruments that are not measured at fair value through net income. This ASU will replace the currently required incurred loss approach with an expected loss model for instruments measured at amortized cost and is effective for financial statements issued for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. ASU 2016-13 will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the impact that the adoption of this update will have on our condensed consolidated financial statements and related disclosures. |
Oil and Gas Properties
Oil and Gas Properties | 3 Months Ended |
Mar. 31, 2021 | |
Extractive Industries [Abstract] | |
Oil and Gas Properties | Oil and Gas PropertiesBrigham 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 are capitalized into a full cost pool. In addition, certain internal costs (or "capitalized general and administrative costs"), are also included in the full cost pool. Capitalized general and administrative costs were $2.7 million and $2.4 million for the three months ended March 31, 2021 and 2020, respectively. Capitalized costs do not include any costs related to general corporate overhead or similar activities, which are expensed in the period incurred. Oil and gas properties as of the dates shown consisted of the following: (In thousands) March 31, 2021 December 31, 2020 Oil and gas properties, at cost, using the full cost method of accounting: Unevaluated property $ 333,742 $ 325,091 Evaluated property 503,133 488,301 Total oil and gas properties, at cost 836,875 813,392 Less accumulated depreciation, depletion, and amortization (198,854) (189,546) Total oil and gas properties, net $ 638,021 $ 623,846 Capitalized costs are depleted on a unit of production basis based on proved oil and natural gas reserves. Depletion expense was $9.3 million and $12.2 million for the three months ended March 31, 2021 and 2020, respectively. Average depletion of proved properties was $11.58 per Boe and $12.94 per Boe for the three months ended March 31, 2021 and 2020, respectively. Under the full cost method of accounting, total capitalized costs of oil and natural gas properties, net of accumulated depletion and related deferred income taxes, may not exceed an amount equal to the present value of future net revenues from proved reserves, discounted at 10% per annum ("PV-10"), plus the cost of unevaluated properties, less related income tax effects (the "ceiling test"). A write-down of the carrying value of the full cost pool ("impairment charge") 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. A ceiling test is calculated at each reporting period. The ceiling test calculation is prepared using an unweighted arithmetic average of oil prices ("SEC oil price") and natural gas prices ("SEC gas price") as of the first day of each month for the trailing 12-month period ended, adjusted by area for energy content, transportation fees and regional price differentials, as required under the guidelines established by the SEC. As of March 31, 2021 and March 31, 2020, the SEC oil price and SEC gas price used in the calculation of the ceiling test were $40.01 and $55.71, respectively, per barrel of oil, and $2.18 and $2.32, respectively, per MMBtu of natural gas. There were no impairment charges during the three months ended March 31, 2021 and 2020. A decline in the SEC oil price or the SEC gas price could lead to impairment charges in the future and such impairment charges could be material, such as occurred in the third and fourth quarters of 2020. In addition to the impact of lower prices, any future changes to assumptions of drilling and completion activity, development timing, acquisitions or divestitures of oil and gas properties, proved undeveloped locations, and production and other estimates may require revisions to estimates of total proved reserves which would impact the amount of any impairment charge. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions During the three months ended March 31, 2021 and 2020, Brigham Minerals entered into a number of acquisitions of mineral and royalty interests from various sellers in Texas, Oklahoma, Colorado, New Mexico, and North Dakota, as reflected in the tables 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 for the three months ended March 31, 2021 were funded with our retained operating cash flow and lease bonus and our revolving credit facility (as hereinafter defined). The changes in the oil and natural gas property balance for the three months ended March 31, 2020 were funded with proceeds from the December 2019 Offering. Oil and Gas Properties Acquired Cash Consideration Paid (In thousands) Evaluated Unevaluated Quarter Ended March 31, 2021 $ 9,073 $ 12,776 $ 21,849 Oil and Gas Properties Acquired Cash Consideration Paid (In thousands) Evaluated Unevaluated Quarter Ended March 31, 2020 $ 9,471 $ 15,947 $ 25,418 |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | Revenue From Contracts With Customers Contract Balances Oil, natural gas and NGL sales revenues are 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. Lease bonus and other revenues are recognized when the lease agreement has been executed, payment has been received, and the Company has no further obligation to refund the payment. 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. As of March 31, 2021, accounts receivable from oil and gas sales of $22.3 million represent rights to payment for which Brigham Minerals has satisfied its obligations under contracts with customers. Prior-period performance obligations Given we do not operate our properties, Brigham Minerals has limited visibility into the timing of when new wells start producing and 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 amount of production delivered to the purchaser is estimated on the basis of state-reported production data or production statements from operators. 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 three months ended March 31, 2021 and 2020, revenue recognized in the reporting periods related to performance obligations satisfied in prior reporting periods was immaterial. Allocation of transaction price to remaining performance obligations |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
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 We had no financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2021 and December 31, 2020. Brigham Minerals had no transfers into or out of Level 1 and no transfers into or out of Level 2 for the three months ended March 31, 2021 and March 31, 2020. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Certain non-financial 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 commodity prices and a risk-adjusted discount rates, and are classified within Level 3. Fair Value of Other Financial Instruments |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Revolving Credit Facility On May 16, 2019, Brigham Resources, LLC, a wholly-owned subsidiary of Brigham LLC ("Brigham Resources"), entered into a credit agreement with Wells Fargo Bank, N.A., as administrative agent (the "Administrative Agent") for the various lenders from time to time party thereto, providing for a 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 a substantial portion of Brigham Resources and its domestic subsidiaries’ assets, including a substantial portion of their respective royalty and mineral properties. Availability under our revolving credit facility is governed by a borrowing base, which is subject to redetermination semi-annually in May and November of each year. 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. The weighted average interest rate for the three months ended March 31, 2021 was 1.83%. As of March 31, 2021, the elected borrowing base on our revolving credit facility was $135.0 million, with outstanding borrowings of $32.0 million, resulting in $103.0 million available for future borrowings. 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 twelve 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 March 31, 2021, we were in compliance with all covenants in accordance with our revolving credit facility. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Equity | Equity Class A Common Stock Brigham Minerals had approximately 43.7 million shares of its Class A common stock outstanding as of March 31, 2021. Holders of Class A common stock are entitled to one vote per share on all matters to be voted upon by the shareholders 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 shareholders after payment of liabilities. Class B Common Stock Brigham Minerals had approximately 13.1 million shares of its Class B common stock outstanding as of March 31, 2021. Holders of the Class B common stock are entitled to one vote per share on all matters to be voted upon by the shareholders. 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’ shareholders for their vote or approval. Holders of Class B common stock do not have any right to receive dividends or distributions upon a liquidation or winding up of Brigham Minerals. Treasury Stock As of March 31, 2021, there were 436,630 shares of Class A common stock held in treasury. 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 units of Brigham LLC ("Brigham LLC Units")), and the treasury stock method to determine the potential dilutive effect of vesting of its outstanding RSAs, RSUs, PSUs (each as defined in "Note 10—Share-Based Compensation") 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 three months ended March 31, 2021, the Incentive Units and shares of Class B common stock were not recognized in dilutive EPS calculations as the effects would have been antidilutive. For the three months ended March 31, 2020, the Incentive Units, RSUs, RSAs, and shares of Class B common stock were not recognized in dilutive EPS calculations as the effect would have been antidilutive. As of March 31, 2021, there were 1,187,811 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 three months ended March 31, 2021, because the performance goals had not been met, assuming the end of the reporting period was the end of the contingency period. The following table reflects the allocation of net income to common shareholders and EPS computations for the period indicated based on a weighted average number of common stock outstanding for the period: Three Months Ended March 31, (In thousands, except per share data) 2021 2020 Basic EPS Numerator: Basic net income attributable to Brigham Minerals, Inc. shareholders $ 8,596 $ 4,706 Denominator: Basic weighted average shares outstanding 43,515 33,979 Basic EPS attributable to Brigham Minerals, Inc. shareholders $ 0.20 $ 0.14 Diluted EPS Numerator: Basic net income attributable to Brigham Minerals, Inc. shareholders $ 8,596 $ 4,706 Diluted net income attributable to Brigham Minerals, Inc. shareholders $ 8,596 $ 4,706 Denominator: Basic weighted average shares outstanding 43,515 33,979 Effects of dilutive securities: Unvested RSUs 230 — Unvested RSAs 9 — Diluted weighted average shares outstanding 43,754 33,979 Diluted EPS attributable to Brigham Minerals, Inc. shareholders $ 0.20 $ 0.14 |
Temporary equity and Noncontrol
Temporary equity and Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2021 | |
Temporary Equity and Noncontrolling Interest Disclosure [Abstract] | |
Temporary equity and Noncontrolling Interest | Temporary equity and Non-controlling interest Temporary equity Temporary equity represented the 23.2% interest in the units of Brigham LLC not owned by Brigham Minerals, as of December 31, 2020. Class B common stock was classified as temporary equity in the condensed consolidated balance sheet as of December 31, 2020, as pursuant to the Amended and Restated Limited Liability Company Agreement of Brigham LLC (the "Brigham LLC Agreement"), the Redemption Rights of a Brigham LLC Unit Holder for either shares of Class A common stock or an equivalent amount of cash was not solely within Brigham Minerals' control. This was due to the fact that the holders of Class B common stock controlled a majority of the votes of the Board of Directors through direct representation on the Board of Directors, which allowed the holders of Class B common stock to control the determination of whether to make a cash payment upon a Brigham LLC Unit Holder's exercise of its Redemption Right. As a result of the appointment of an additional independent member to our Board of Directors on February 19, 2021, the holders of Class B common stock no longer hold a majority of the votes of the Board of Directors and no longer control the Board of Directors through direct representation on the Board of Directors. Consequently, after February 19, 2021, Class B common stock is presented as non-controlling interest (as discussed below) in the condensed consolidated balance sheet of Brigham Minerals. Temporary equity was recorded at the greater of the carrying value or redemption amount with a corresponding adjustment to additional paid-in capital. For the period from January 1, 2021 to February 18, 2021, Brigham Minerals recorded adjustments to the value of temporary equity as presented in the table below: (In thousands) Temporary Equity Adjustments Balance - December 31, 2020 (1) $ 146,280 Net income attributable to temporary equity 1,922 Adjustment of temporary equity to redemption value 54,294 Reclassification to non-controlling interest (2) $ (202,496) Balance - February 18, 2021 $ — (1) Based on 13,167,687 shares of Class B common stock outstanding and Class A common stock 10-day volume-weighted average closing price of $11.11 at December 31, 2020. (2) Based on 13,167,687 shares of Class B common stock outstanding and Class A common stock 10-day volume-weighted average closing price of $15.38 at February 18, 2021. The February 18, 2021 redemption value of temporary equity became the carrying value of non-controlling interest, as discussed below. Non-controlling Interest Non-controlling interest represents the 23.0% interest in the units of Brigham LLC not owned by Brigham Minerals, as of March 31, 2021. Class B common stock is classified as non-controlling interest in the condensed consolidated balance sheet as of March 31, 2021. 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 shareholders generally, and holders of Brigham LLC Units (and Class B common stock) have a redemption right into shares of Class A common stock. As discussed below, following the IPO: • Each Brigham LLC 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 LLC 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 held, 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 Brigham LLC Agreement, each Brigham LLC 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 LLC 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 LLC 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. Non-controlling interest is recorded at its carrying value. For the period from February 19, 2021 to March 31, 2021, the Company recorded adjustments to the value of non-controlling interest as presented in the table below: (In thousands) Non-controlling interest Balance - February 19, 2021 $ — Reclassification from temporary equity (1) 202,496 Conversion of Class B common stock to Class A common stock (1,721) Net income attributable to non-controlling interest (2) 1,553 Distribution to holders of non-controlling interest (3,447) Balance - March 31, 2021 $ 198,881 (1) Represents the February 19, 2021, redemption value of temporary equity, prior to its reclassification to non-controlling interest. Based on 13,167,687 shares of Class B common stock outstanding and Class A common stock 10-day volume-weighted average closing price of $15.38 at February 18, 2021. (2) Net income attributable to non-controlling interest includes the period from February 19, 2021 through March 31, 2021. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Share-Based Compensation 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 subject to time-based vesting ("RSUs") and restricted stock units subject to performance-based vesting ("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 March 31, 2021, 3,028,367 shares of Class A common stock remained available for future grants. Currently, all 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. Brigham Minerals accounts for forfeitures as they occur. The Company has granted RSAs to certain employees, which 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. The RSAs generally vested in one-third increments on each of April 23, 2020 and 2021 and will vest as to the final one-third increment on April 23, 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. The following table summarizes activity related to RSAs for the three months ended March 31, 2021. Restricted Stock Awards Number of RSAs Grant Date Fair Value Unvested at January 1, 2021 68,293 $ 21.25 Vested — $ — Forfeited (4,512) $ 21.25 Unvested at March 31, 2021 63,781 $ 21.25 The Company has granted RSUs to certain employees and directors, which 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 generally vest in one-third increments over a three-year period 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 cost of such RSUs was determined using the closing price on the applicable date of grant, which is then applied to the total number of RSUs granted. During the three months ended March 31, 2021, the Company granted 527,778 RSUs. The share-based compensation expense of such RSUs was determined using the closing price of Class A common stock on February 24, 2021, the date of grant, of $16.11. The following table summarizes activity related to RSUs for the three months ended March 31, 2021. Restricted Stock Units Number of RSUs Weighted-Average Grant Date Fair Value Unvested at January 1, 2021 562,871 $ 17.81 Granted 527,778 $ 16.11 Vested — $ — Forfeited (2,710) $ 18.29 Unvested at March 31, 2021 1,087,939 $ 16.98 The Company has granted PSUs to certain officers and managers, which vest based on continuous employment and satisfaction of a performance metric based on the absolute total shareholder return of the Company’s common stock, including paid dividends, over an approximate three-year performance period. The terms and conditions of the PSUs allow for vesting of the awards ranging between 0% (or forfeiture) and 200% of target. Expense related to these PSUs is recognized on a straight-line basis over the length of the applicable performance period. All compensation cost related to the market-based awards will be recognized if the requisite service period is fulfilled, even if the market condition is not achieved. The grant date fair value of such PSUs was determined using a Monte Carlo simulation model that 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 on the basis of historical volatility of a group of publicly traded oil and gas companies with a 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. The following table summarizes activity related to PSUs for the three months ended March 31, 2021. In addition, no PSUs became vested or were forfeited during the three months ended March 31, 2021: Performance-Based Restricted Stock Units Target PSUs Grant Date Fair Value Unvested at January 1, 2021 1,187,811 $ 10.07 Granted (1) — — Unvested at March 31, 2021 1,187,811 $ 10.07 (1) In February 2021, the Compensation Committee of the Board of Directors approved a grant of 472,377 PSUs and management is in the process of executing the award agreements. However, as all terms of the grant have not yet been agreed to, a grant date has not been established as of March 31, 2021. Share-Based Compensation Expense Share-based compensation expense is included in general and administrative expense in the Company's condensed consolidated statements of operations included within this Quarterly Report. Share-based compensation expense recorded for each type of share-based compensation award for the three months ended March 31, 2021 and 2020 is summarized in the table below. Three Months Ended March 31, (In thousands) 2021 2020 Incentive Units (1) $ 178 $ 178 RSAs (1) (4) 134 700 RSUs (1) 2,542 1,594 PSUs (2) 1,079 930 Capitalized share-based compensation (3) (1,633) (1,518) Total share-based compensation expense $ 2,300 $ 1,884 (1) Share-based compensation expense relating to Incentive Units, RSAs and RSUs with ratable vesting is recognized on a straight-line basis over the requisite service period for the entire award. (2) 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. (3) During the three months ended March 31, 2021, Brigham Minerals capitalized $0.9 million of share-based compensation cost to unevaluated property and $0.7 million of share-based compensation cost to evaluated property. (4) During the three months ended March 31, 2020, share-based compensation cost included $0.5 million associated with the accelerated vesting of 30,174 RSAs for certain employees who retired in February 2020. Future Share-Based Compensation Expense The following table reflects the future share-based compensation expense expected to be recorded for the share-based compensation awards that were outstanding at March 31, 2021, a portion of which will be capitalized: Incentive Units RSAs RSUs PSUs Total Year (In thousands) 2021 $ 534 $ 511 $ 7,110 $ 3,296 $ 11,451 2022 534 209 5,477 966 7,186 2023 — — 2,828 — 2,828 Total $ 1,068 $ 720 $ 15,415 $ 4,262 $ 21,465 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company evaluates and updates its annual effective income tax rate on a quarterly basis under the effective tax rate method based on applying an anticipated annual effective rate to its year-to-date income, except for discrete items. Consequently, based upon the mix and timing of our actual earnings compared to annual projections, our effective tax rate may vary quarterly and may make comparisons not meaningful. Income taxes for discrete items are computed and recorded in the period that the specific transaction occurs. Income tax expense was as follows for the periods indicated: Three Months Ended March 31, (In thousands, except for tax rate) 2021 2020 Income tax expense $ 3,073 $ 1,582 Effective tax rate 20.3 % 15.2 % Total income tax expense for the three months ended March 31, 2021 and 2020 differed from amounts computed by applying the U.S. federal statutory tax rate of 21% due to the impact of non-controlling interest, state taxes (net of the anticipated federal benefit), share-based compensation expense, and percentage depletion in excess of basis. The effective tax rate for the three months ended March 31, 2021 and 2020 reflects Brigham Minerals’ ownership interest in Brigham LLC of 77% and 60.1%, respectively, at the end of each period. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Brigham Minerals leases office space under operating leases. Rent expense for the three months ended March 31, 2021 and 2020 was $0.3 million and $0.2 million, respectively. Future minimum lease commitments under non-cancelable operating leases at March 31, 2021 are presented below: (In thousands) Commitment Year 2021 (remainder of) $ 956 2022 1,310 2023 1,347 2024 1,384 2025 1,419 Thereafter 2,251 Total $ 8,667 Contingencies |
COVID-19 Pandemic and Winter St
COVID-19 Pandemic and Winter Storm Uri | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COVID-19 Pandemic and Winter Storm Uri | COVID-19 Pandemic and Winter Storm Uri COVID-19 Pandemic and Impact on Global Demand for Oil and Natural Gas The ongoing global spread of a novel strain of coronavirus (SARS-Cov-2), which causes COVID-19, has caused a continuing disruption to the oil and natural gas industry and to our business by, among other things, contributing to a significant decrease in global crude oil demand and the price for oil in 2020. The declining commodity prices adversely affected the revenues the Company receives for its royalty interests and could affect its ability to access the capital markets on terms favorable to the Company. Additionally, in response to the decline in commodity prices, many operators on the Company's properties have announced reductions in their estimated capital expenditures for 2021 and beyond, which has and will adversely affect the near-term development of the Company's properties in 2021 and beyond. While these lower commodity prices initially resulted in some of the Company's operators shutting in or curtailing production from wells on its properties during the second quarter of 2020, the Company saw a majority of its operators resume production for previously curtailed and shut in wells in connection with the improvement of commodity prices in the second half of 2020 and the first quarter of 2021. The Company is currently operating its office at 100% capacity while continuing to support remote working for its employees that are considered high-risk pursuant to the Center for Disease Control and Prevention guidelines or have household members meeting the criteria of those guidelines. The Company has not experienced material disruptions to its operations or the health of its workforce and has maintained the engagement and connectivity of its personnel. Winter Storm Uri In February 2021, Winter Storm Uri caused severe winter weather and freezing temperatures in the southern United States, which effected our properties in the Permian and Anadarko Basins, resulting in the curtailment of a portion of our production, delays in drilling and completion of wells, other operational constraints and ultimately adversely impacted our first quarter 2021 production. These curtailments, delay and operational constraints also resulted in increases in commodity prices, primarily natural gas prices. For example, the Henry Hub spot market price for natural gas for the month of February 2021 ranged from a low of $2.66 per MMBtu to a high of $23.86 per MMBtu. Given we do not operate our properties, Brigham Minerals has limited visibility into the timing of when production resumed and was required to estimate the amount of production delivered to the purchaser and the price that will be ultimately received for the sale of the product. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn May 4, 2021, the Board of Directors of Brigham Minerals declared a dividend of $0.32 per share of Class A common stock payable on May 28, 2021, to shareholders of record at the close of business on May 21, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements of Brigham Minerals have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), except that, in accordance with the instructions to Form 10-Q, they do not include all of the notes required for financial statements prepared in conformity with U.S. GAAP. Accordingly, the accompanying unaudited interim financial statements should be read in conjunction with our audited financial statements included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on February 25, 2021 (the "Annual Report"). The unaudited interim financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for a fair representation. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2021. Brigham Minerals operates in one segment: oil and natural gas exploration and production. |
Use of Estimates | Use of Estimates These condensed consolidated financial statements and related notes are presented in accordance with GAAP. Preparation in accordance 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 condensed consolidated 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 condensed consolidated financial statements are based on a number of significant estimates including quantities of oil, natural gas and NGL 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’ year-end reserve estimates are audited by Cawley, Gillespie & Associates, Inc., an |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted Brigham Minerals’ status as an emerging growth company ("EGC") under Section 107 of the Jumpstart Our Business Startups Act of 2012 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, Brigham Minerals will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for private companies. If Brigham Minerals loses its status as an EGC before the adoption dates for private companies, Brigham Minerals will be required to accelerate the adoption of new or revised accounting standards. In February 2016, the Financial Accounting Standards Board (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, 2022 and interim periods within the fiscal year ending December 31, 2023 yet early adoption is permitted. We are currently evaluating the impact that the adoption of this update will have on our condensed consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses. In May 2019, ASU 2016-13 was subsequently amended by ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses and ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. ASU 2016-13, as amended, affects trade receivables, financial assets and certain other instruments that are not measured at fair value through net income. This ASU will replace the currently required incurred loss approach with an expected loss model for instruments measured at amortized cost and is effective for financial statements issued for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. ASU 2016-13 will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the impact that the adoption of this update will have on our condensed consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Receivable | As of March 31, 2021 and December 31, 2020, accounts receivable was comprised of the following: (In thousands) March 31, 2021 December 31, 2020 Accounts receivable Oil and gas sales $ 22,341 $ 17,413 Reserve for bad debt (855) (855) Other 54 1,074 Total accounts receivable $ 21,540 $ 17,632 |
Schedules of Concentration of Risk, by Risk Factor | Concentrations of oil and gas sales to significant customers (operators) are presented in the table below. Three Months Ended Customer (Operator) Name March 31, 2021 March 31, 2020 Exxon Mobil Corp 16 % 8 % Occidental Petroleum Corp 12 % 13 % Continental Resources Inc. 10 % 9 % Royal Dutch Shell PLC 9 % 16 % |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Extractive Industries [Abstract] | |
Schedule of Oil and Gas Properties | Oil and gas properties as of the dates shown consisted of the following: (In thousands) March 31, 2021 December 31, 2020 Oil and gas properties, at cost, using the full cost method of accounting: Unevaluated property $ 333,742 $ 325,091 Evaluated property 503,133 488,301 Total oil and gas properties, at cost 836,875 813,392 Less accumulated depreciation, depletion, and amortization (198,854) (189,546) Total oil and gas properties, net $ 638,021 $ 623,846 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Asset Acquisitions | During the three months ended March 31, 2021 and 2020, Brigham Minerals entered into a number of acquisitions of mineral and royalty interests from various sellers in Texas, Oklahoma, Colorado, New Mexico, and North Dakota, as reflected in the tables 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 for the three months ended March 31, 2021 were funded with our retained operating cash flow and lease bonus and our revolving credit facility (as hereinafter defined). The changes in the oil and natural gas property balance for the three months ended March 31, 2020 were funded with proceeds from the December 2019 Offering. Oil and Gas Properties Acquired Cash Consideration Paid (In thousands) Evaluated Unevaluated Quarter Ended March 31, 2021 $ 9,073 $ 12,776 $ 21,849 Oil and Gas Properties Acquired Cash Consideration Paid (In thousands) Evaluated Unevaluated Quarter Ended March 31, 2020 $ 9,471 $ 15,947 $ 25,418 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reflects the allocation of net income to common shareholders and EPS computations for the period indicated based on a weighted average number of common stock outstanding for the period: Three Months Ended March 31, (In thousands, except per share data) 2021 2020 Basic EPS Numerator: Basic net income attributable to Brigham Minerals, Inc. shareholders $ 8,596 $ 4,706 Denominator: Basic weighted average shares outstanding 43,515 33,979 Basic EPS attributable to Brigham Minerals, Inc. shareholders $ 0.20 $ 0.14 Diluted EPS Numerator: Basic net income attributable to Brigham Minerals, Inc. shareholders $ 8,596 $ 4,706 Diluted net income attributable to Brigham Minerals, Inc. shareholders $ 8,596 $ 4,706 Denominator: Basic weighted average shares outstanding 43,515 33,979 Effects of dilutive securities: Unvested RSUs 230 — Unvested RSAs 9 — Diluted weighted average shares outstanding 43,754 33,979 Diluted EPS attributable to Brigham Minerals, Inc. shareholders $ 0.20 $ 0.14 |
Temporary equity and Noncontr_2
Temporary equity and Noncontrolling Interest (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Temporary Equity and Noncontrolling Interest Disclosure [Abstract] | |
Temporary Equity | For the period from January 1, 2021 to February 18, 2021, Brigham Minerals recorded adjustments to the value of temporary equity as presented in the table below: (In thousands) Temporary Equity Adjustments Balance - December 31, 2020 (1) $ 146,280 Net income attributable to temporary equity 1,922 Adjustment of temporary equity to redemption value 54,294 Reclassification to non-controlling interest (2) $ (202,496) Balance - February 18, 2021 $ — (1) Based on 13,167,687 shares of Class B common stock outstanding and Class A common stock 10-day volume-weighted average closing price of $11.11 at December 31, 2020. (2) Based on 13,167,687 shares of Class B common stock outstanding and Class A common stock 10-day volume-weighted average closing price of $15.38 at February 18, 2021. The February 18, 2021 redemption value of temporary equity became the carrying value of non-controlling interest, as discussed below. |
Schedule Of Adjustments To Noncontrolling Interests | For the period from February 19, 2021 to March 31, 2021, the Company recorded adjustments to the value of non-controlling interest as presented in the table below: (In thousands) Non-controlling interest Balance - February 19, 2021 $ — Reclassification from temporary equity (1) 202,496 Conversion of Class B common stock to Class A common stock (1,721) Net income attributable to non-controlling interest (2) 1,553 Distribution to holders of non-controlling interest (3,447) Balance - March 31, 2021 $ 198,881 (1) Represents the February 19, 2021, redemption value of temporary equity, prior to its reclassification to non-controlling interest. Based on 13,167,687 shares of Class B common stock outstanding and Class A common stock 10-day volume-weighted average closing price of $15.38 at February 18, 2021. (2) Net income attributable to non-controlling interest includes the period from February 19, 2021 through March 31, 2021. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Incentive Unit Activity | The following table summarizes activity related to RSAs for the three months ended March 31, 2021. Restricted Stock Awards Number of RSAs Grant Date Fair Value Unvested at January 1, 2021 68,293 $ 21.25 Vested — $ — Forfeited (4,512) $ 21.25 Unvested at March 31, 2021 63,781 $ 21.25 Restricted Stock Units Number of RSUs Weighted-Average Grant Date Fair Value Unvested at January 1, 2021 562,871 $ 17.81 Granted 527,778 $ 16.11 Vested — $ — Forfeited (2,710) $ 18.29 Unvested at March 31, 2021 1,087,939 $ 16.98 The following table summarizes activity related to PSUs for the three months ended March 31, 2021. In addition, no PSUs became vested or were forfeited during the three months ended March 31, 2021: Performance-Based Restricted Stock Units Target PSUs Grant Date Fair Value Unvested at January 1, 2021 1,187,811 $ 10.07 Granted (1) — — Unvested at March 31, 2021 1,187,811 $ 10.07 (1) In February 2021, the Compensation Committee of the Board of Directors approved a grant of 472,377 PSUs and management is in the process of executing the award agreements. However, as all terms of the grant have not yet been agreed to, a grant date has not been established as of March 31, 2021. |
Schedule of Share-Based Compensation Expense | Share-based compensation expense recorded for each type of share-based compensation award for the three months ended March 31, 2021 and 2020 is summarized in the table below. Three Months Ended March 31, (In thousands) 2021 2020 Incentive Units (1) $ 178 $ 178 RSAs (1) (4) 134 700 RSUs (1) 2,542 1,594 PSUs (2) 1,079 930 Capitalized share-based compensation (3) (1,633) (1,518) Total share-based compensation expense $ 2,300 $ 1,884 (1) Share-based compensation expense relating to Incentive Units, RSAs and RSUs with ratable vesting is recognized on a straight-line basis over the requisite service period for the entire award. (2) 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. (3) During the three months ended March 31, 2021, Brigham Minerals capitalized $0.9 million of share-based compensation cost to unevaluated property and $0.7 million of share-based compensation cost to evaluated property. (4) During the three months ended March 31, 2020, share-based compensation cost included $0.5 million associated with the accelerated vesting of 30,174 RSAs for certain employees who retired in February 2020. Future Share-Based Compensation Expense The following table reflects the future share-based compensation expense expected to be recorded for the share-based compensation awards that were outstanding at March 31, 2021, a portion of which will be capitalized: Incentive Units RSAs RSUs PSUs Total Year (In thousands) 2021 $ 534 $ 511 $ 7,110 $ 3,296 $ 11,451 2022 534 209 5,477 966 7,186 2023 — — 2,828 — 2,828 Total $ 1,068 $ 720 $ 15,415 $ 4,262 $ 21,465 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income tax expense was as follows for the periods indicated: Three Months Ended March 31, (In thousands, except for tax rate) 2021 2020 Income tax expense $ 3,073 $ 1,582 Effective tax rate 20.3 % 15.2 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease commitments under non-cancelable operating leases at March 31, 2021 are presented below: (In thousands) Commitment Year 2021 (remainder of) $ 956 2022 1,310 2023 1,347 2024 1,384 2025 1,419 Thereafter 2,251 Total $ 8,667 |
Business and Basis of Present_2
Business and Basis of Presentation (Details) - segment | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Number of operating segments | 1 | |
Brigham LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Sale of stock, ownership percentage | 77.00% | 60.10% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Bad debt expense | $ 0 | $ 244 | |
General and Administrative Expense | |||
Schedule of Equity Method Investments [Line Items] | |||
Bad debt expense | $ 0 | $ 200 | |
Brigham LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Sale of stock, ownership percentage | 77.00% | 60.10% | |
Brigham LLC | Existing Owners of Brigham Minerals | |||
Schedule of Equity Method Investments [Line Items] | |||
Sale of stock, ownership percentage | 23.00% | 23.20% |
Summary of Significant Accounts
Summary of Significant Accounts Policies - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Oil and gas sales | $ 22,341 | $ 17,413 |
Reserve for bad debt | (855) | (855) |
Other | 54 | 1,074 |
Total accounts receivable | $ 21,540 | $ 17,632 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - customer | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Concentration Risk [Line Items] | ||
Concentration risk, number of customers | 130 | 150 |
Revenue Benchmark | Exxon Mobil Corp | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percentage) | 16.00% | 8.00% |
Revenue Benchmark | Occidental Petroleum Corp | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percentage) | 12.00% | 13.00% |
Revenue Benchmark | Continental Resources, Inc. | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percentage) | 10.00% | 9.00% |
Revenue Benchmark | Royal Dutch Shell PLC | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percentage) | 9.00% | 16.00% |
Revenue Benchmark | Top Ten Operators | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percentage) | 69.00% | 63.00% |
Oil and Gas Properties - Narrat
Oil and Gas Properties - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)$ / Boe | Mar. 31, 2020USD ($)$ / Boe | |
Extractive Industries [Abstract] | ||
Capitalized costs | $ 2,700,000 | $ 2,400,000 |
Depletion expense | $ 9,300,000 | $ 12,200,000 |
Average depletion of proved properties (in dollars per Boe) | $ / Boe | 11.58 | 12.94 |
Impairment of oil and gas properties | $ 0 | $ 0 |
Oil and Gas Properties - Schedu
Oil and Gas Properties - Schedule of Oil and Gas Properties (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Oil and gas properties, at cost, using the full cost method of accounting: | ||
Unevaluated property | $ 333,742 | $ 325,091 |
Evaluated property | 503,133 | 488,301 |
Total oil and gas properties, at cost | 836,875 | 813,392 |
Less accumulated depreciation, depletion, and amortization | (198,854) | (189,546) |
Total oil and gas properties, net | $ 638,021 | $ 623,846 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Combinations [Abstract] | ||
Assets acquired, evaluated | $ 9,073 | $ 9,471 |
Assets acquired, unevaluated | 12,776 | 15,947 |
Cash consideration paid | $ 21,849 | $ 25,418 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Oil and gas sales | $ 22,341 | $ 17,413 |
Long-Term Debt (Details)
Long-Term Debt (Details) | May 16, 2019 | Mar. 31, 2021USD ($) |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate (as a percent) | 1.83% | |
Line of credit, borrowing base | $ 135,000,000 | |
Line of credit, outstanding borrowings | 32,000,000 | |
Line of credit, availability for future borrowings | $ 103,000,000 | |
Brigham Resources, LLC | New Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
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 | Interest period, one month | ||
Debt Instrument [Line Items] | ||
Interest period (in months) | 1 month | |
Brigham Resources, LLC | New Revolving Credit Facility | Interest period, two months | ||
Debt Instrument [Line Items] | ||
Interest period (in months) | 2 months | |
Brigham Resources, LLC | New Revolving Credit Facility | Interest period, three months | ||
Debt Instrument [Line Items] | ||
Interest period (in months) | 3 months | |
Brigham Resources, LLC | New Revolving Credit Facility | Interest period, four months | ||
Debt Instrument [Line Items] | ||
Interest period (in months) | 6 months | |
Brigham Resources, LLC | New Revolving Credit Facility | Interest period, twelve months | ||
Debt Instrument [Line Items] | ||
Interest period (in months) | 12 months | |
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% |
Equity - Narrative (Details)
Equity - Narrative (Details) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2021shares | Mar. 31, 2021voteshares | Dec. 31, 2020shares | |
Class of Stock [Line Items] | |||
Treasury stock (in shares) | 436,630 | 436,630 | |
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common stock outstanding (in shares) | 43,665,558 | 43,558,494 | |
Number of votes per share (vote) | vote | 1 | ||
Treasury stock (in shares) | 436,630 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Common stock outstanding (in shares) | 13,056,111 | 13,167,687 | |
Number of votes per share (vote) | vote | 1 | ||
Performance-Based Restricted Stock Units | |||
Class of Stock [Line Items] | |||
Shares granted during period (in shares) | 472,377 | 1,187,811 |
Equity - Schedule of Earnings p
Equity - Schedule of Earnings per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Basic net income attributable to Brigham Minerals, Inc. shareholders | $ 8,596 | $ 4,706 |
Denominator: | ||
Basic weighted average shares outstanding (in shares) | 43,515 | 33,979 |
Basic EPS attributable to Brigham Minerals, Inc. shareholders (in dollars per share) | $ 0.20 | $ 0.14 |
Numerator: | ||
Diluted net income attributable to Brigham Minerals, Inc. shareholders | $ 8,596 | $ 4,706 |
Denominator: | ||
Basic weighted average shares outstanding (in shares) | 43,515 | 33,979 |
Effects of dilutive securities: | ||
Time-based - RSUs (in shares) | 230 | 0 |
Time-based RSAs (in shares) | 9 | 0 |
Diluted weighted average shares outstanding (in shares) | 43,754 | 33,979 |
Diluted EPS attributable to Brigham Minerals, Inc. shareholders (in dollars per share) | $ 0.20 | $ 0.14 |
Temporary equity and Noncontr_3
Temporary equity and Noncontrolling Interest - Narrative (Details) | Apr. 17, 2019shares | Mar. 31, 2021vote | Mar. 31, 2020 | Dec. 31, 2020 |
Class B Common Stock | ||||
Temporary Equity [Line Items] | ||||
Number of votes per share (vote) | 1 | |||
Class A Common Stock | ||||
Temporary Equity [Line Items] | ||||
Number of votes per share (vote) | 1 | |||
Conversion of stock, shares received (in shares) | shares | 1 | |||
Existing Owners of Brigham Minerals | Class B Common Stock | ||||
Temporary Equity [Line Items] | ||||
Number of votes per share (vote) | 1 | |||
Brigham LLC | ||||
Temporary Equity [Line Items] | ||||
Sale of stock, ownership percentage | 77.00% | 60.10% | ||
Brigham LLC | Existing Owners of Brigham Minerals | ||||
Temporary Equity [Line Items] | ||||
Sale of stock, ownership percentage | 23.00% | 23.20% |
Temporary equity and Noncontr_4
Temporary equity and Noncontrolling Interest - Schedule of Temporary Equity Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | ||
Mar. 31, 2021 | Feb. 18, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Beginning balance | $ 146,280 | $ 146,280 | |||
Net income attributable to temporary equity | 1,922 | ||||
Adjustment of temporary equity to redemption value | 54,294 | 54,294 | $ (206,017) | ||
Reclassification to non controlling interest | $ (202,496) | (202,496) | $ (202,496) | ||
Ending balance | $ 0 | ||||
Class B Common Stock | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Temporary equity (in shares) | 13,167,687 | 13,167,687 | |||
Temporary equity, share price (in dollars per share) | $ 15.38 | $ 11.11 |
Temporary equity and Noncontr_5
Temporary equity and Noncontrolling Interest - Schedule of Noncontrolling Interest (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | |
Mar. 31, 2021 | Feb. 18, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | $ 0 | $ 0 | $ 0 | |
Reclassification from temporary equity to non-controlling interest | 202,496 | $ 202,496 | 202,496 | |
Conversion of shares of Class B Common Stock to Class A Common Stock | (1,721) | |||
Net income attributable to non-controlling interest | 1,553 | 3,475 | $ 4,095 | |
Distribution to holders of non-controlling interest | (3,447) | |||
Ending balance | $ 198,881 | $ 198,881 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - $ / shares | Apr. 23, 2019 | Feb. 28, 2021 | Mar. 31, 2021 |
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 | ||
RSAs | First anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at grant (as a percent) | 33.34% | ||
RSAs | Second anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at grant (as a percent) | 33.34% | ||
RSAs | Third anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at grant (as a percent) | 33.34% | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted during period, grant date fair value (in dollars per share) | $ 16.11 | ||
Award vesting period (in years) | 3 years | ||
Shares granted during period (in shares) | 527,778 | ||
RSUs | First anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at grant (as a percent) | 33.34% | ||
RSUs | Second anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at grant (as a percent) | 33.34% | ||
RSUs | Third anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at grant (as a percent) | 33.34% | ||
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) | $ 0 | ||
Shares granted during period (in shares) | 472,377 | 1,187,811 | |
Period of expense recognition | 3 years | ||
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) | 3,028,367 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - $ / shares | Apr. 23, 2019 | Feb. 28, 2021 | Mar. 31, 2021 |
RSAs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 68,293 | ||
Vested (in shares) | 0 | ||
Forfeited (in shares) | (4,512) | ||
Ending balance (in shares) | 63,781 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance (in dollars per share) | $ 21.25 | ||
Grant-date fair value, Granted (in dollars per share) | $ 21.25 | ||
Grant-date fair value, Vested (in dollars per share) | 0 | ||
Grant-date fair value, Forfeited (in dollars per share) | 21.25 | ||
Ending balance (in dollars per share) | $ 21.25 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 562,871 | ||
Granted (in shares) | 527,778 | ||
Vested (in shares) | 0 | ||
Forfeited (in shares) | (2,710) | ||
Ending balance (in shares) | 1,087,939 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance (in dollars per share) | $ 17.81 | ||
Grant-date fair value, Granted (in dollars per share) | 16.11 | ||
Grant-date fair value, Vested (in dollars per share) | 0 | ||
Grant-date fair value, Forfeited (in dollars per share) | 18.29 | ||
Ending balance (in dollars per share) | $ 16.98 | ||
Target PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 1,187,811 | ||
Granted (in shares) | 0 | ||
Ending balance (in shares) | 1,187,811 | ||
Performance-Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Granted (in shares) | 472,377 | 1,187,811 | |
Vested (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance (in dollars per share) | $ 10.07 | ||
Grant-date fair value, Granted (in dollars per share) | 0 | ||
Ending balance (in dollars per share) | $ 10.07 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Compensation Expense and Future Stock Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Capitalized share-based compensation | $ (1,633) | $ (1,518) |
Total share-based compensation expense | 2,300 | 1,884 |
Future share-based compensation expense | 21,465 | |
2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 11,451 | |
2022 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 7,186 | |
2023 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 2,828 | |
Incentive Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 178 | 178 |
Future share-based compensation expense | 1,068 | |
Incentive Units | 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 534 | |
Incentive Units | 2022 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 534 | |
Incentive Units | 2023 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 0 | |
RSAs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 134 | 700 |
Accelerated cost | $ 500 | |
Accelerated vesting of RSAs (in shares) | 30,174 | |
Future share-based compensation expense | 720 | |
RSAs | 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 511 | |
RSAs | 2022 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 209 | |
RSAs | 2023 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 0 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 2,542 | $ 1,594 |
Future share-based compensation expense | 15,415 | |
RSUs | 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 7,110 | |
RSUs | 2022 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 5,477 | |
RSUs | 2023 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 2,828 | |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 1,079 | $ 930 |
Future share-based compensation expense | 4,262 | |
PSUs | 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 3,296 | |
PSUs | 2022 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 966 | |
PSUs | 2023 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future share-based compensation expense | 0 | |
Unevaluated Property | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Capitalized share-based compensation | (900) | |
Evaluated Property | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Capitalized share-based compensation | $ (700) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax expense | $ 3,073 | $ 1,582 |
Effective tax rate (as a percent) | 20.30% | 15.20% |
Brigham LLC | ||
Operating Loss Carryforwards [Line Items] | ||
Sale of stock, ownership percentage | 77.00% | 60.10% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent expense | $ 300 | $ 200 |
2021 (remainder of) | 956 | |
2022 | 1,310 | |
2023 | 1,347 | |
2024 | 1,384 | |
2025 | 1,419 | |
Thereafter | 2,251 | |
Total | $ 8,667 |
COVID-19 Pandemic and Winter _2
COVID-19 Pandemic and Winter Storm Uri (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Office capacity, percent reopened | 100.00% |
Subsequent Events (Details)
Subsequent Events (Details) | May 04, 2021$ / shares |
Class A Common Stock | Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends declared (in dollars per share) | $ 0.32 |