Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Entity Listings [Line Items] | ||||
Document Type | 20-F | |||
Document Registration Statement | false | |||
Document Annual Report | true | |||
Document Period End Date | Dec. 31, 2023 | |||
Current Fiscal Year End Date | --12-31 | |||
Document Transition Report | false | |||
Document Shell Company Report | false | |||
Entity File Number | 001-41870 | |||
Entity Registrant Name | Diversified Energy Company PLC | |||
Entity Incorporation, State or Country Code | X0 | |||
Entity Address, Address Line One | 1600 Corporate Drive | |||
Entity Address, City or Town | Birmingham | |||
Entity Address, State or Province | AL | |||
Entity Address, Postal Zip Code | 35242 | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Filer Category | Non-accelerated Filer | |||
Entity Emerging Growth Company | false | |||
Document Financial Statement Error Correction | false | |||
Document Accounting Standard | International Financial Reporting Standards | |||
Entity Shell Company | false | |||
Entity Central Index Key | 0001922446 | |||
Amendment Flag | false | |||
Document Fiscal Year Focus | 2023 | |||
Document Fiscal Period Focus | FY | |||
Entity Common Stock, Shares Outstanding | 0 | 0 | ||
Gain (loss) on sale of equity interest | $ 18,440 | $ 0 | $ 0 | |
Gains (losses) on financial assets at fair value through profit or loss | 4,610 | $ 0 | $ 0 | |
Equity investments [member] | ||||
Entity Listings [Line Items] | ||||
Gains (losses) on financial assets at fair value through profit or loss | $ (4,610) | |||
DP Lion Equity Holdco LLC | ||||
Entity Listings [Line Items] | ||||
Gain (loss) on sale of equity interest | $ 18,440 | |||
Business Contact | ||||
Entity Listings [Line Items] | ||||
City Area Code | 205 | |||
Entity Address, Address Line One | 1600 Corporate Drive | |||
Entity Address, City or Town | Birmingham | |||
Entity Address, State or Province | AL | |||
Entity Address, Postal Zip Code | 35242 | |||
Contact Personnel Name | Bradley G. Gray | |||
Local Phone Number | 408 0909 | |||
NEW YORK STOCK EXCHANGE, INC. | ||||
Entity Listings [Line Items] | ||||
Title of 12(b) Security | Ordinary shares, nominal (par) value £0.20 per share | |||
Trading Symbol | DEC | |||
Security Exchange Name | NYSE | |||
LONDON STOCK EXCHANGE | ||||
Entity Listings [Line Items] | ||||
Title of 12(b) Security | Ordinary shares, nominal (par) value £0.20 per share | |||
Trading Symbol | DEC |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Birmingham, Alabama |
Auditor Firm ID | 238 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Profit or loss [abstract] | |||
Revenue | $ 868,263 | $ 1,919,349 | $ 1,007,561 |
Operating expenses | (440,562) | (445,893) | (291,213) |
Depreciation, depletion and amortization | (224,546) | (222,257) | (167,644) |
Gross profit | 203,155 | 1,251,199 | 548,704 |
General and administrative expenses | (119,722) | (170,735) | (102,326) |
Allowance for expected credit losses | (8,478) | 0 | 4,265 |
Gain (loss) on natural gas and oil properties and equipment | 24,146 | 2,379 | (901) |
Gain (loss) on sale of equity interest | 18,440 | 0 | 0 |
Gains (losses) on financial assets at fair value through profit or loss | 4,610 | 0 | 0 |
Gain (loss) on derivative financial instruments | 1,080,516 | (1,758,693) | (974,878) |
Gain on bargain purchases | 0 | 4,447 | 58,072 |
Impairment of proved properties | (41,616) | 0 | 0 |
Operating profit (loss) | 1,161,051 | (671,403) | (467,064) |
Finance costs | (134,166) | (100,799) | (50,628) |
Accretion of asset retirement obligation | (26,926) | (27,569) | (24,396) |
Other income (expense) | 385 | 269 | (8,812) |
Income (loss) before taxation | 1,000,344 | (799,502) | (550,900) |
Income tax benefit (expenses) | (240,643) | 178,904 | 225,694 |
Net income (loss) | 759,701 | (620,598) | (325,206) |
Other comprehensive income (loss) | (270) | 940 | 51 |
Total comprehensive income (loss) | 759,431 | (619,658) | (325,155) |
Net income (loss) attributable to: | |||
Diversified Energy Company PLC | 758,018 | (625,410) | (325,509) |
Non-controlling interest | $ 1,683 | $ 4,812 | $ 303 |
Earnings (loss) per share attributable to Diversified Energy Company PLC | |||
Weighted average shares outstanding - basic (in shares) | 47,165 | 42,204 | 39,677 |
Weighted average shares outstanding - diluted (in shares) | 47,514 | 42,204 | 39,677 |
Earnings (loss) per share - basic (in dollar per share) | $ 16.07 | $ (14.82) | $ (8.20) |
Earnings (loss) per share - diluted (in dollar per share) | $ 15.95 | $ (14.82) | $ (8.20) |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Non-current assets: | ||
Natural gas and oil properties, net | $ 2,490,375 | $ 2,555,808 |
Property, plant and equipment, net | 456,208 | 462,860 |
Intangible assets | 19,351 | 21,098 |
Restricted cash | 25,057 | 47,497 |
Derivative financial instruments | 24,401 | 13,936 |
Deferred tax assets | 144,860 | 371,156 |
Other non-current assets | 9,172 | 4,351 |
Total non-current assets | 3,169,424 | 3,476,706 |
Current assets: | ||
Trade receivables, net | 190,207 | 296,781 |
Cash and cash equivalents | 3,753 | 7,329 |
Restricted cash | 11,195 | 7,891 |
Derivative financial instruments | 87,659 | 27,739 |
Other current assets | 11,784 | 14,482 |
Total current assets | 304,598 | 354,222 |
Total assets | 3,474,022 | 3,830,928 |
Shareholders' equity: | ||
Share capital | 12,897 | 11,503 |
Share premium | 1,208,192 | 1,052,959 |
Treasury reserve | (102,470) | (100,828) |
Share based payment and other reserves | 14,442 | 17,650 |
Retained earnings (accumulated deficit) | (547,255) | (1,133,972) |
Equity attributable to owners of the parent: | 585,806 | (152,688) |
Non-controlling interests | 12,604 | 14,964 |
Total equity | 598,410 | (137,724) |
Non-current liabilities: | ||
Asset retirement obligations | 501,246 | 452,554 |
Leases | 20,559 | 19,569 |
Borrowings | 1,075,805 | 1,169,233 |
Deferred tax liability | 13,654 | 12,490 |
Derivative financial instruments | 623,684 | 1,177,801 |
Other non-current liabilities | 2,224 | 5,375 |
Total non-current liabilities | 2,237,172 | 2,837,022 |
Current liabilities: | ||
Trade and other payables | 53,490 | 93,764 |
Taxes payable | 50,226 | |
Leases | 10,563 | 9,293 |
Borrowings | 200,822 | 271,096 |
Derivative financial instruments | 45,836 | 293,840 |
Other current liabilities | 277,503 | 421,730 |
Total current liabilities | 638,440 | 1,131,630 |
Total liabilities | 2,875,612 | 3,968,652 |
Total equity and liabilities | $ 3,474,022 | $ 3,830,928 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Thousands | Total | Equity Attributable to Owners of the Parent | Share Capital | Share Premium | Treasury Reserve | Share Based Payment and Other Reserves | Retained Earnings (Accumulated Deficit) | Non-Controlling Interest |
Equity at beginning of period at Dec. 31, 2020 | $ 886,658 | $ 886,658 | $ 9,520 | $ 841,159 | $ (68,537) | $ 8,797 | $ 95,719 | $ 0 |
Net income (loss) | (325,206) | (325,509) | (325,509) | 303 | ||||
Other comprehensive income (loss) | 51 | 51 | 51 | |||||
Total comprehensive income (loss) | (325,155) | (325,458) | (325,458) | 303 | ||||
Non-controlling interest in acquired assets | 16,238 | 16,238 | ||||||
Issuance of share capital (equity placement) | 213,844 | 213,844 | 2,044 | 211,800 | ||||
Issuance of share capital (equity compensation) | 4,033 | 4,033 | 7 | 6,788 | (2,762) | |||
Dividends | (130,239) | (130,239) | (130,239) | |||||
Distributions to non-controlling interest owners | 0 | |||||||
Cancellation of warrants | (1,429) | (1,429) | (1,429) | |||||
Transactions with shareholders | 102,447 | 86,209 | 2,051 | 211,800 | 5,359 | (133,001) | 16,238 | |
Equity at end of period at Dec. 31, 2021 | 663,950 | 647,409 | 11,571 | 1,052,959 | (68,537) | 14,156 | (362,740) | 16,541 |
Net income (loss) | (620,598) | (625,410) | (625,410) | 4,812 | ||||
Other comprehensive income (loss) | 940 | 940 | 940 | |||||
Total comprehensive income (loss) | (619,658) | (624,470) | (624,470) | 4,812 | ||||
Issuance of share capital (equity placement) | 457 | 457 | 5 | 452 | ||||
Issuance of share capital (equity compensation) | 2,382 | 2,382 | 7 | 5,682 | (3,307) | |||
Issuance of EBT shares (equity compensation) | 0 | 2,400 | (2,400) | |||||
Repurchase of shares (EBT) | (22,931) | (22,931) | (22,931) | |||||
Repurchase of shares (share buyback program) | (11,760) | (11,760) | (80) | (11,760) | 80 | |||
Dividends | (143,455) | (143,455) | (143,455) | |||||
Distributions to non-controlling interest owners | (6,389) | (6,389) | ||||||
Cancellation of warrants | (320) | (320) | (320) | |||||
Transactions with shareholders | (182,016) | (175,627) | (68) | (32,291) | 3,494 | (146,762) | (6,389) | |
Equity at end of period at Dec. 31, 2022 | (137,724) | (152,688) | 11,503 | 1,052,959 | (100,828) | 17,650 | (1,133,972) | 14,964 |
Net income (loss) | 759,701 | 758,018 | 758,018 | 1,683 | ||||
Other comprehensive income (loss) | (270) | (270) | (270) | |||||
Total comprehensive income (loss) | 759,431 | 757,748 | 757,748 | 1,683 | ||||
Issuance of share capital (equity placement) | 156,788 | 156,788 | 1,555 | 155,233 | ||||
Issuance of share capital (equity compensation) | 3,047 | 3,047 | 6,037 | (2,990) | ||||
Issuance of EBT shares (equity compensation) | 0 | 9,406 | (9,406) | |||||
Repurchase of shares (share buyback program) | (11,048) | (11,048) | (161) | (11,048) | 161 | |||
Dividends | (168,041) | (168,041) | (168,041) | |||||
Distributions to non-controlling interest owners | (4,043) | (4,043) | ||||||
Transactions with shareholders | (23,297) | (19,254) | 1,394 | 155,233 | (1,642) | (3,208) | (171,031) | (4,043) |
Equity at end of period at Dec. 31, 2023 | $ 598,410 | $ 585,806 | $ 12,897 | $ 1,208,192 | $ (102,470) | $ 14,442 | $ (547,255) | $ 12,604 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Income (loss) after taxation | $ 759,701 | $ (620,598) | $ (325,206) |
Cash flows from operations reconciliation: | |||
Depreciation, depletion and amortization | 224,546 | 222,257 | 167,644 |
Accretion of asset retirement obligations | 26,926 | 27,569 | 24,396 |
Impairment of proved properties | 41,616 | 0 | 0 |
Income tax (benefit) expense | 240,643 | (178,904) | (225,694) |
(Gain) loss on fair value adjustments of unsettled financial instruments | (905,695) | 861,457 | 652,465 |
Asset retirement costs | (5,961) | (4,889) | (2,879) |
(Gain) loss on natural gas and oil properties and equipment | (24,146) | (2,379) | 901 |
(Gain) loss on sale of equity interest | (18,440) | 0 | 0 |
Unrealized (gain) loss on investment | (4,610) | 0 | 0 |
Gain on bargain purchases | 0 | (4,447) | (58,072) |
Finance costs | 134,166 | 100,799 | 50,628 |
Revaluation of contingent consideration | 0 | 0 | 8,963 |
Hedge modifications | 26,686 | (10,164) | |
Non-cash equity compensation | 6,494 | 8,051 | 7,400 |
Working capital adjustments: | |||
Change in trade receivables and other current assets | 104,571 | 13,760 | (126,957) |
Change in other non-current assets | 1,661 | (580) | (556) |
Change in trade and other payables and other current liabilities | (183,530) | 132,349 | 162,486 |
Change in other non-current liabilities | (6,236) | (6,794) | 5,707 |
Cash generated from operations | 418,392 | 414,078 | 331,062 |
Cash paid for income taxes | (8,260) | (26,314) | (10,880) |
Net cash provided by operating activities | 410,132 | 387,764 | 320,182 |
Cash flows from investing activities: | |||
Consideration for business acquisitions, net of cash acquired | 0 | (24,088) | (286,804) |
Consideration for asset acquisitions | (262,329) | (264,672) | (287,330) |
Proceeds from divestitures | 95,749 | 0 | 86,224 |
Payments associated with potential acquisitions | 0 | 0 | (25,002) |
Acquisition related debt and hedge extinguishments | 0 | 0 | (56,466) |
Expenditures on natural gas and oil properties and equipment | (74,252) | (86,079) | (50,175) |
Proceeds on disposals of natural gas and oil properties and equipment | 4,083 | 12,189 | 2,663 |
Deferred consideration payments | (2,620) | 0 | 0 |
Contingent consideration payments | 0 | (23,807) | (10,822) |
Net cash used in investing activities | (239,369) | (386,457) | (627,712) |
Cash flows from financing activities: | |||
Repayment of borrowings | (1,547,912) | (2,139,686) | (1,432,566) |
Proceeds from borrowings | 1,537,230 | 2,587,554 | 1,727,745 |
Cash paid for interest | (116,784) | (83,958) | (42,673) |
Debt issuance costs | (13,776) | (34,234) | (10,255) |
Decrease (increase) in restricted cash | 11,792 | (36,287) | 1,838 |
Hedge modifications associated with ABS Notes | (6,376) | (105,316) | 0 |
Proceeds from equity issuance, net | 156,788 | 0 | 213,844 |
Principal element of lease payments | (12,169) | (10,211) | (7,556) |
Cancellation (settlement) of warrants, net | 0 | 137 | (1,429) |
Dividends to shareholders | (168,041) | (143,455) | (130,239) |
Distributions to non-controlling interest owners | (4,043) | (6,389) | 0 |
Repurchase of shares by the EBT | 0 | (22,931) | 0 |
Repurchase of shares | (11,048) | (11,760) | 0 |
Net cash provided by (used in) financing activities | (174,339) | (6,536) | 318,709 |
Net change in cash and cash equivalents | (3,576) | (5,229) | 11,179 |
Cash and cash equivalents, beginning of period | 7,329 | 12,558 | 1,379 |
Cash and cash equivalents, end of period | $ 3,753 | $ 7,329 | $ 12,558 |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2023 | |
Trade And Other Receivables1 [Abstract] | |
TRADE AND OTHER RECEIVABLES | NOTE 14 - TRADE AND OTHER RECEIVABLES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) Trade receivables include amounts due from customers, entities that purchase the Group’s natural gas, NGLs and oil production, and also include amounts due from joint interest owners, entities that own a working interest in the properties operated by the Group. The majority of trade receivables are current, and the Group believes these receivables are collectible. The following table summarizes the Group’s trade receivables. The fair value approximates the carrying value as of the periods presented : December 31, 2023 December 31, 2022 Commodity receivables (a) $ 172,045 $ 285,700 Other receivables (b) 34,691 20,022 Total trade receivables $ 206,736 $ 305,722 Allowance for credit losses (c) (16,529) (8,941) Total trade receivables, net $ 190,207 $ 296,781 (a) Includes trade receivables and accrued revenues. The decrease in commodity receivables primarily reflects the decrease in commodity pricing over the course of 2023. (b) Other receivables consist primarily of joint interest receivables in 2023 and 2022. (c) The allowance for credit losses is primarily related to amounts due from joint interest owners. Year-over-year increases is primarily due to the declining commodity pricing environment during the year. |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Trade And Other Receivables1 [Abstract] | |
Summary Of Group’s Trade Receivables | The following table summarizes the Group’s trade receivables. The fair value approximates the carrying value as of the periods presented : December 31, 2023 December 31, 2022 Commodity receivables (a) $ 172,045 $ 285,700 Other receivables (b) 34,691 20,022 Total trade receivables $ 206,736 $ 305,722 Allowance for credit losses (c) (16,529) (8,941) Total trade receivables, net $ 190,207 $ 296,781 (a) Includes trade receivables and accrued revenues. The decrease in commodity receivables primarily reflects the decrease in commodity pricing over the course of 2023. (b) Other receivables consist primarily of joint interest receivables in 2023 and 2022. (c) The allowance for credit losses is primarily related to amounts due from joint interest owners. Year-over-year increases is primarily due to the declining commodity pricing environment during the year. |
TRADE AND OTHER RECEIVABLES (De
TRADE AND OTHER RECEIVABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Trade And Other Receivables [Line Items] | ||
Total trade receivables | $ 206,736 | $ 305,722 |
Allowance for credit losses | (16,529) | (8,941) |
Current trade receivables | 190,207 | 296,781 |
Commodity receivables | ||
Trade And Other Receivables [Line Items] | ||
Total trade receivables | 172,045 | 285,700 |
Other receivables | ||
Trade And Other Receivables [Line Items] | ||
Total trade receivables | $ 34,691 | $ 20,022 |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of general information about financial statements [Abstract] | |
GENERAL INFORMATION | NOTE 1 - GENERAL INFORMATION (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) Diversified Energy Company PLC (the “Parent” or “Company”), formerly Diversified Gas & Oil PLC , and its wholly owned subsidiaries (the “Group”) is an independent energy company engaged in the production, transportation and marketing of primarily natural gas related to its synergistic U.S. onshore upstream and midstream assets. The Group’s assets are located within the Appalachian and Central basins of the U.S . The Company was incorporated on July 31, 2014 in the United Kingdom and is registered in England and Wales under the Companies Act 2006 as a public limited company under company number 09156132 . The Group‘s registered office is located at 4th floor Phoenix House, 1 Station Hill, Reading, Berkshire, RG1 1NB, UK . In May 2020, the Company’s shares were admitted to trading on the LSE’s Main Market for listed securities under the ticker “DEC”. In December 2023, the Company’s shares were admitted to trading on the New York Stock Exchange (“NYSE”) under the ticker “DEC.” As of December 31, 2023, the principal trading market for the Company’s ordinary shares was the LSE. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of basis of preparation of financial statements [Abstract] | |
BASIS OF PREPARATION | NOTE 2 - BASIS OF PREPARATION (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) Basis of Preparation The Group's consolidated financial statements (the “ Group Financial Statements ”) have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The principal accounting policies set out below have been applied consistently throughout the year and are consistent with prior year unless otherwise stated. Unless otherwise stated, the Group Financial Statements are presented in U.S. Dollars, which is the Group’s subsidiaries’ functional currency and the currency of the primary economic environment in which the Group operates, and all values are rounded to the nearest thousand dollars except per share and per unit amounts and where otherwise indicated. Transactions in foreign currencies are translated into U.S. Dollars at the rate of exchange on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate at the date of the Consolidated Statement of Financial Position. Where the Group’s subsidiaries have a different functional currency, their results and financial position are translated into the presentation currency as follows: — Assets and liabilities in the Consolidated Statement of Financial Position are translated at the closing rate at the date of that Consolidated Statement of Financial Position; — Income and expenses in the Consolidated Statement of Comprehensive Income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and — All resulting exchange differences are reflected within other comprehensive income in the Consolidated Statement of Comprehensive Income. The Group Financial Statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and liabilities (including derivative instruments) held at fair value through profit and loss or through other comprehensive income. Segment Reporting The Group is an independent owner and operator of producing natural gas and oil wells with properties located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas and Louisiana. The Group’s strategy is to acquire long-life producing assets, efficiently operate those assets to generate free cash flow for shareholders and then to retire assets safely and responsibly at the end of their useful life. The Group’s assets consist of natural gas and oil wells, pipelines and a network of gathering lines and compression facilities which are complementary to the Group’s assets. In accordance with IFRS the Group establishes segments on the basis on which those components of the Group are evaluated regularly by the chief executive officer, DEC’s chief operating decision maker (“ CODM ”), when deciding how to allocate resources and in assessing performance. When evaluating performance as well as when acquiring and managing assets the CODM does so in a consolidated and complementary fashion to vertically integrate and improve margins. Accordingly, when determining operating segments under IFRS 8, the Group has identified one reportable segment that produces and transports natural gas, NGLs and oil in the U.S. Going Concern The Group Financial Statements have been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realization of assets and the settlement of liabilities in the normal course of business. The Directors have reviewed the Group’s overall position and outlook and are of the opinion that the Group is sufficiently well funded to be able to operate as a going concern for at least the next twelve months from the date of approval of this Annual Report & Form 20-F . The Directors closely monitor and carefully manage the Group’s liquidity risk. Our financial outlook is assessed primarily through the annual business planning process, however it is also carefully monitored on a monthly basis. This process includes regular Board discussions, led by senior leadership , at which the current performance of, and outlook for, the Group are assessed. The outputs from the business planning process include a set of key performance objectives, an assessment of the Group’s primary risks, the anticipated operational outlook and a set of financial forecasts that consider the sources of funding available to the Group (the “Base Plan”). The Base Plan incorporates key assumptions which underpin the business planning process. These assumptions are as follows: — Projected operating cash flows are calculated using a production profile which is consistent with current operating results and decline rates; — Assumes commodity prices are in line with the current forward curve which also considers basis differentials; — Operating cost levels stay consistent with historical trends; — The financial impact of our current hedging contracts in place for the assessment period, which represents approximately 83% , and 76% of total production volumes hedged for the years ending December 31, 2024 and 2025 , respectively ; and — The scenario also includes the scheduled principal and interest payments on our current debt arrangements. The Directors and management also consider various scenarios around the Base Plan that primarily reflect a more severe, but plausible, downside impact of the principal risks, both individually and in the aggregate, as well as the additional capital requirements that downside scenarios could place on us . These scenarios are as follows: Scenario 1: Cyclically low gas prices for a year (Henry Hub prices of $1.50 per MMbtu before returning to strip pricing), which have been historically observed in the market. Scenario 2: Considered the impact of climate change by assuming a two week period of lost production in our East Texas/ Louisiana region, which is susceptible to hurricanes, due to a natural disaster (assumed to occur once in each year of the assessment period). Scenario 3: Considered the impact of climate change by assuming a two week period of lost production in our Appalachian region (assumption of lost production in 25% of the total region), which is susceptible to flooding, due to a natural disaster (assumed to occur once in each year of the assessment period). Under these downside sensitivity scenarios, the Group continues to meet its working capital requirements, which primarily consist of derivative liabilities that, when settled, will be funded utilizing the higher commodity revenues from which the derivative liability was derived. The Group will also continue to meet the covenant requirements under its Credit Facility as well as its other existing borrowing instruments. The Directors and management consider the impact that these principal risks could, in certain circumstances, have on the Group’s prospects within the assessment period, and accordingly appraise the opportunities to actively mitigate the risk of these severe, but plausible, downside scenarios. In addition to its modelled downside going concern scenarios, the Board has stress tested the model to determine the extent of downturn which would result in a breach of covenants. Assuming similar levels of cash conversion as seen in 2023 , a decline in production volume and pricing well in excess of that historically experienced by the Group would need to persist throughout the going concern period for a covenant breach to occur, which is considered very unlikely. In addition to the scenarios above, the Directors also considered the current geopolitical environment and the inflationary pressures that are currently impacting the U.S., which are being closely monitored by the Group. Notwithstanding the modelling of specific hypothetical scenarios, the Group believes that the impact associated with these events will largely continue to be reflected in commodity markets and will extend the volatility experienced in recent months. The Group considers commodity price risk a principal risk and will continue to actively monitor and mitigate this risk through our hedging program. Based on the above, the Directors have reviewed the Group’s overall position and outlook and are of the opinion that the Group is sufficiently f unded to be able to operate as a going concern for t he next twelve months from the date of approval of the Group Financial Statements . Prior Period Reclassifications and Changes in Presentation Reclassifications in the Consolidated Statement of Financial Position The Group reclassified $41,907 to “taxes payable” from “other current liabilities” in the accompanying 2022 Consolidated Statement of Financial Position to conform to current year presentation. Reclassifications in the Consolidated Statement of Cash Flows The Group reclassified certain amounts in it prior year Consolidated Statement of Cash Flows to conform to its current period presentation. These changes in classification do not affect net cash provided by (used in) financing activities previously reported in the Consolidated Statement of Cash Flows. The Group reclassified $1,022 and $1,050 in “principal element of lease payments” to “cash paid for interest” for the years ended December 31, 2022 and 2021 , respectively. Basis of Consolidation The Group Financial Statements for the year ended December 31, 2023 reflect the following corporate structure of the Group, and its wholly owned subsidiaries: — Diversified Energy Company PLC (“DEC”) as well as its wholly owned subsidiaries — Diversified Gas & Oil Corporation — Diversified Production LLC — Diversified ABS Holdings LLC — Diversified ABS LLC — Diversified ABS Phase II Holdings LLC — Diversified ABS Phase II LLC — Diversified ABS Phase III Holdings LLC — Diversified ABS Phase III LLC — Diversified ABS III Upstream LLC — Diversified ABS Phase III Midstream LLC — Diversified ABS Phase IV Holdings LLC — Diversified ABS Phase IV LLC — Diversified ABS Phase V Holdings LLC — Diversified ABS Phase V LLC — Diversified ABS V Upstream LLC — DP Bluegrass Holdings LLC — DP Bluegrass LLC — Chesapeake Granite Wash Trust (a) — BlueStone Natural Resources II LLC — Sooner State Joint ABS Holdings LLC (b) — Diversified ABS Phase VI Holdings LLC — Diversified ABS Phase VI LLC — Diversified ABS VI Upstream LLC — Oaktree ABS VI Upstream LLC — DP Lion Equity Holdco LLC (c) — DP Lion HoldCo LLC (c) — DP Vandalia Equity Holdco LLC — DP Vandalia Holdco LLC — DP RBL Co LLC — DP Legacy Central LLC — Diversified Energy Marketing LLC — DP Tapstone Energy Holdings LLC — DP Legacy Tapstone LLC — TGG Cotton Valley Assets, LLC — Giant Land, LLC (d) — Link Land LLC (d) — Old Faithful Land LLC (d) — Riverside Land LLC (d) — Splendid Land LLC (d) — DP Production Holdings II LLC — Diversified Midstream LLC — Cranberry Pipeline Corporation — Coalfield Pipeline Company — DM Bluebonnet LLC — Black Bear Midstream Holdings LLC — Black Bear Midstream LLC — Black Bear Liquids LLC — Black Bear Liquids Marketing LLC — DM Pennsylvania Holdco LLC — DGOC Holdings Sub III LLC — Diversified Energy Group LLC — Diversified Energy Company LLC — Next LVL Energy, LLC (a) Diversified Production, LLC holds 50.8% of the issued and outstanding common shares of Chesapeake Granite Wash Trust. (b) Owned 51.25% by Diversified Production LLC. (c) Diversified Production, LLC holds 20% of the issued and outstanding equity of DP Lion Equity Holdco LLC. This entity is not consolidated within the Group’s financial statements as of December 31, 2023 . Refer to Note 5 for additional information. (d) Owned 55% by Diversified Energy Company PLC. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The preparation of the Group Financial Statements in compliance with IFRS as issued by the IASB requires management to make estimates and exercise judgment in applying the Group’s accounting policies. In preparing the Group Financial Statements , the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty are disclosed in Note 4 . Business Combinations and Asset Acquisitions The Group performs an assessment of each acquisition to determine whether the acquisition should be accounted for as an asset acquisition or a business combination. For each transaction, the Group may elect to apply the concentration test to determine if the fair value of assets acquired is substantially concentrated in a single asset (or a group of similar assets). If this concentration test is met, the acquisition qualifies as an acquisition of a group of assets and liabilities, not of a business. Accounting for business combinations under IFRS 3 is applied once it is determined that a business has been acquired. Under IFRS 3, a business is defined as an integrated set of activities and assets conducted and managed for the purpose of providing a return to investors. A business generally consists of inputs, processes applied to those inputs, and resulting outputs that are, or will be, used to generate revenues. When less than the entire interest of an entity is acquired, the choice of measurement of the non-controlling interest, either at fair value or at the proportionate share of the acquiree’s identifiable net assets, is determined on a transaction by transaction basis. More information regarding the judgments and conclusions reached with respect to business combinations and asset acquisitions is included in Notes 4 and 5 . Oaktree Capital Management, L.P. (“Oaktree”) Participation Agreement In October 2020 , the Group entered into a three -year definitive participation agreement with funds managed by Oaktree to jointly identify and fund future proved developed producing acquisition opportunities (“PDP acquisitions”) that the Group identified. The Oaktree Funding Commitment provided for up to $1,000,000 in aggregate over three years for mutually agreed upon PDP acquisitions with transaction valuations typically greater than $250,000 . The Group and Oaktree each funded 50% of the net purchase price in exchange for proportionate working interests of 51.25% and 48.75% during Tranche I deals, or joint acquisitions made during the first 18 months of the agreement, and 52.5% and 47.5% during Tranche II deals, or joint acquisitions made during the second 18 months of the agreement, respectively. The Group's greater share reflected the upfront promote it received from Oaktree which was intended to compensate the Group for the increase in general and administrative expenses needed to operate an entity that increases with acquired growth. Additionally, upon Oaktree achieving a 10% unlevered internal rate of return, Oaktree would convey a back-end promote to the Group which would increase the Group’s working interest to 59.625% for both Tranche I and Tranche II deals. The Group also maintains the right of first offer to acquire Oaktree’s interest if and when Oaktree decides to divest. The Group and Oaktree each have the right to participate in a sale by the other party with a third-party upon comparable terms. The Group accounts for the Oaktree Participation Agreement as a joint operation under IFRS 11, Joint Arrangements (“IFRS 11”). Accordingly, the Group includes its proportionate share of assets, liabilities, revenues and expenses within the consolidated financial statements . The Oaktree Participation Agreement ended in October 2023. While Oaktree continues to hold the working interests it acquired, the agreement to participate in future acquisition opportunities has expired. Inventory Natural gas inventory is stated at the lower of cost and net realizable value, cost being determined on a weighted average cost basis. Inventory also consists of material and supplies used in connection with the Group’s maintenance, storage and handling. Inventory is stated at the lower of cost or net realizable value. Cash and Cash Equivalents Cash on the balance sheet comprises cash at banks. Balances held at banks, at times, exceed U.S. federally insured amounts. The Group has not experienced any losses in such accounts and the Directors believe the Group is not exposed to any significant credit risk on its cash. As of December 31, 2023 and 2022 , the Group’s cash balance was $3,753 and $7,329 , respectively. Trade Receivables Trade receivables are stated at the historical carrying amount, net of any provisions required. Trade receivables are due from customers throughout the natural gas and oil industry. Although dispersed among several customers, collectability is dependent on the financial condition of each individual customer as well as the general economic conditions of the industry. The Directors review the financial condition of customers prior to extending credit and generally do not require collateral to support the recoverability of the Group’s trade receivables. Any changes in the Group’s allowance for expected credit losses during the year are recognized in the Consolidated Statement of Comprehensive Income. Trade receivables also include certain receivables from third-party working interest owners as well as hedge settlement receivables. The Group consistently assesses the collectability of these receivables. As of December 31, 2023 and 2022 , the Group considered a portion of these working interest receivables uncollectable and recorded an allowance for credit losses in the amount of $16,529 and $8,941 , respectively. Refer to Note 14 for additional information. Impairment of Financial Assets IFRS 9 requires the application of an expected credit loss model in considering the impairment of financial assets. The expected credit loss model requires the Group to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition of the financial assets. The credit event does not have to occur before credit losses are recognized. IFRS 9 allows for a simplified approach for measuring the loss allowance at an amount equal to lifetime expected credit losses for trade receivables. The Group applies the simplified approach to the expected credit loss model to trade receivables arising from: — Sales of natural gas, NGLs and oil; — Sales of gathering and transportation of third-party natural gas; and — The provision of other services. Borrowings Borrowings are recognized initially at fair value, net of any applicable transaction costs incurred. Borrowings are subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the Consolidated Statement of Comprehensive Income over the period of the borrowings using the effective interest method. Interest on borrowings is accrued as applicable to each class of borrowing. Derivative Financial Instruments Derivatives are used as part of the Group’s overall strategy to mitigate risk associated with the unpredictability of cash flows due to volatility in commodity prices. Further details of the Group’s exposure to these risks are detailed in Note 25 . The Group has entered into financial instruments which are considered derivative contracts, such as swaps and collars, which result in net cash settlements each month and do not result in physical deliveries. The derivative contracts are initially recognized at fair value at the date the contract is entered into and remeasured to fair value every balance sheet date. The resulting gain or loss is recognized in the Consolidated Statement of Comprehensive Income in the year incurred in the gain (loss) on derivative financial instruments line item. R estricted Cash Cash held on deposit for bonding purposes is classified as restricted cash and recorded within current and non-current assets. The cash (1) is restricted in use by state governmental agencies to be utilized and drawn upon if the operator should abandon any wells, or (2) is being held as collateral by the Group’s surety bond providers. Additionally, the Group is required to maintain certain reserves for interest payments related to its asset-backed securitizations discussed in Note 21 . These reserves approximate six to seven months of interest as well as any associated fees. The Group classifies restricted cash as current or non-current based on the classification of the associated asset or liability to which the restriction relates. This reserve cash is managed and held by an indenture trustee who monitors the reserve month to month ensuring the proper quantum is maintained. This trustee is independent, and the conditions of the deposit prevent the Group from accessing it on demand such that it no longer meets the definition of cash and cash equivalents. December 31, 2023 December 31, 2022 Cash restricted by asset-backed securitizations $ 35,870 $ 54,552 Other restricted cash 382 836 Total restricted cash $ 36,252 $ 55,388 Classified as: Current asset $ 11,195 $ 7,891 Non-current asset 25,057 47,497 Total $ 36,252 $ 55,388 Natural Gas and Oil Properties Natural gas and oil activities are accounted for using the principles of the successful efforts method of accounting as described below. DEVELOPMENT AND ACQUISITION COSTS Costs incurred to purchase, lease, or otherwise acquire a property are capitalized when incurred. Expenditures related to the construction, installation or completion of infrastructure facilities, such as platforms, and the drilling of development wells, including delineation wells, are capitalized within natural gas and oil properties. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, and the initial estimate of the asset retirement obligation. DEPLETION Proved natural gas, oil and NGL reserve volumes are used as the basis to calculate unit-of-production depletion rates. Leasehold costs are depleted on the unit-of-production basis over the total proved reserves of the relevant area while production and development wells are depleted over proved producing reserves. Intangible Assets SOFTWARE DEVELOPMENT Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognized as intangible assets where the following criteria are met: — It is technically feasible to complete the software so that it will be available for use; — The Directors intend to complete the software and use or sell it; — There is an ability to use the software; — It can be demonstrated how the software will generate probable future economic benefits; — Adequate technical, financial and other resources to complete the development and to use the software are available; and — The expenditure attributable to the software during its development can be reliably measured. Directly attributable costs that are capitalized as part of the software include cost incurred by third parties, employee costs and an appropriate portion of relevant overheads. Capitalized development costs are recorded as intangible assets and amortized from the point at which the asset is ready for use. Costs associated with maintaining software programs are recognized as an expense as incurred. IMPAIRMENT OF INTANGIBLE ASSETS Intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Intangible assets that suffer an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. AMORTIZATION The Group amortizes intangible assets with a limited useful life, using the straight-line method over the following periods: Range in Years Software 3 - 5 Other acquired intangibles (a) 3 (a) Represents intangible assets acquired in business combinations and asset acquisitions. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any. The cost of property, plant and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the Directors. Property, plant and equipment are generally depreciated on a straight-line basis over their estimated useful lives: Range in Years Buildings and leasehold improvements 10 - 40 Equipment 5 - 10 Motor vehicles 5 Midstream assets 10 - 15 Other property and equipment 5 - 10 Property, plant and equipment held under leases are depreciated over the shorter of the lease term or estimated useful life. Impairment of Non-Financial Assets At each reporting date, the Directors assess whether indications exist that an asset may be impaired. If indications exist, or when annual impairment testing for an asset is required, the Directors estimate the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s, or cash generating unit’s, fair value less costs to sell and its value-in-use, and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the Directors consider the asset impaired and write the asset down to its recoverable amount. In assessing value-in- use, the Directors discount the estimated future cash flows to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, the Directors consider recent market transactions, if available. If no such transactions can be identified, the Directors will utilize an appropriate valuation model. Non-Controlling Interests Non-controlling interests represent the equity in subsidiaries that is not attributable to the Group’s shareholders. The acquisition of a non-controlling interest in a subsidiary and the sale of an interest while retaining control are accounted for as transactions within equity and are reported within non-controlling interests in the consolidated financial statements. During the years ended December 31, 2023 , 2022 and 2021 , the Group recorded $1,683 , $4,812 and $303 , respectively, of net income attributable to non-controlling interests. As of December 31, 2023 and 2022 , the Group had a non-controlling interests balance of $12,604 and $14,964 , respectively. During the years ended December 31, 2023 , 2022 and 2021 , the Group paid $4,043 , $6,389 and $0 , respectively, in distributions to non-controlling interest owners. Refer to Note 5 for information regarding the Group’s non-controlling interests in the Chesapeake Granite Wash Trust (“the GWT”), acquired in connection with the Tapstone Acquisition in December 2021 . Leases The Group recognizes a right-of-use asset and a lease liability at the commencement date of contracts (or separate components of a contract) which convey to the Group the right to control the use of an identified asset for a period of time in exchange for consideration, when such contracts meet the definition of a lease as determined by IFRS 16, Leases (“IFRS 16”). The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inception date. The Group initially measures the lease liability at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease. When this rate can not be readily determined, the Group uses its incremental borrowing rate. After the commencement date, the lease liability is reduced for payments made by the lessee and increased for interest on the lease liability. Right-of-use assets are initially measured at cost, which comprises: — The amount of the initial measurement of the lease liability; — Any lease payments made at or before the commencement date, less any lease incentives received, any initial direct costs incurred by the lessee; and — An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease unless those costs are incurred to produce inventories. Subsequent to the measurement date, the right-of-use asset is depreciated on a straight line basis for a period of time that reflects the life of the underlying asset, and also adjusted for the remeasurement of any lease liability. Asset Retirement Obligations Where a liability for the retirement of a well, removal of production equipment and site restoration at the end of the production life of a well exists, the Group recognizes a liability for asset retirement. The amount recognized is the present value of estimated future net expenditures determined in accordance with our anticipated retirement plans as well as with local conditions and requirements. The unwinding of the discount on the decommissioning liability is included as accretion of the decommissioning provision. The cost of the relevant property, plant and equipment asset is increased with an amount equivalent to the liability and depreciated on a unit of production basis. The Group recognizes changes in estimates prospectively, with corresponding adjustments to the liability and the associated non-current asset. As of December 31, 2023 and 2022 , the Group had no midstream asset retirement obligations . Taxation DEFERRED TAXATION Deferred tax assets and liabilities arise from temporary differences between the tax bases of assets and liabilities and their carrying amounts in the Group Financial Statements . Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred liability is settled. Deferred tax assets are recognized to the extent that it is probable that the future taxable profit will be available against which the temporary differences can be utilized. CURRENT TAXATION Current income tax assets and liabilities for the years ended December 31, 2023 and 2022 were measured at the amount to be recovered from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the jurisdictions where the Group operates and generates taxable income. UNCERTAIN TAX POSITIONS Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances based on either the most likely amount, or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. Revenue Recognition NATURAL GAS, NGLs AND OIL Commodity revenue is derived from sales of natural gas, NGLs and oil products and is recognized when the customer obtains control of the commodity. This transfer generally occurs when the product is physically transferred into a vessel, pipe, sales meter or other delivery mechanism. This also represents the point at which the Group carries out its single performance obligation to its customer under contracts for the sale of natural gas, NGLs and oil for the purposes of IFRS 15, Revenue from Contracts with Customers (“IFRS 15”). Commodity revenue in which the Group has an interest with other producers is recognized proportionately based on the Group’s working interest and the terms of the relevant production sharing contracts. Royalty payments or counterparty distributions, representing the portion of revenue that is due to minority working interests, is included as a liability , described in Note 23 . Commodity revenue is recorded based on the volumes accepted each day by customers at the delivery point and is measured using the respective market price index for the applicable commodity plus or minus the applicable basis differential based on the quality of the product. THIRD-PARTY GATHERING REVENUE Revenue from gathering and transportation of third-party natural gas is recognized when the customer transfers its natural gas to the entry point in the Group’s midstream network and becomes entitled to withdraw an equivalent volume of natural gas from the exit point in the Group’s midstream network under contracts for the gathering and transportation of natural gas. This transfer generally occurs when product is physically transferred into the Group’s vessel, pipe, or sales meter. The customer’s entitlement to withdraw an equivalent volume of natural gas is broadly coterminous with the transfer of natural gas into the Group’s midstream network. Customers are invoiced and revenue is recognized each month based on the volume of natural gas transported at a contractually agreed upon price per unit. THIRD-PARTY PLUGGING REVENUE Revenue from third-party asset retirement services is recognized as earned in the month work is performed and consistent with the Group’s contractual obligations. The Group’s contractual obligations in this respect are considered to be its performance obligations for the purposes of IFRS 15. OTHER REVENUE Revenue from the operation of third-party wells is recognized as earned in the month work is performed and consistent with the Group’s contractual obligations. The Group’s contractual obligations in this respect are considered to be its performance obligations for the purposes of IFRS 15. Revenue from the sale of water disposal services to third-parties into the Group’s disposal wells is recognized as earned in the month the water was physically disposed at a contractually agreed upon price per unit. Disposal of the water is considered to be the Group’s performance obligation under these contracts. Revenue is stated after deducting sales taxes, excise duties and similar levies . Share-Based Payments The Group accounts for share-based payments under IFRS 2, Share-Based Payment (“IFRS 2”). All of the Group’s share-based awards are equity settled. The fair value of the awards are determined at the date of grant. As of December 31, 2023 , 2022 and 2021 , the Group had three types of share-based payment awards: RSUs, PSUs and Options. The fair value of the Group’s RSUs is measured using the stock price at the grant date. The fair value of the Group’s PSUs is measured using a Monte Carlo simulation model. The inputs to the Monte Carlo simulation model included: — The share price at the date of grant; — Expected volatility; — Expected dividends; — Risk free rate of interest; and — Patterns of exercise of the plan participants. The fair value of the Group’s Options was calculated using the Black-Scholes model as of the grant date. The inputs to the Black-Scholes model included: — The share price at the date of grant; — Exercise price; — Expected volatility; and — Risk-free rate of interest. The grant date fair value of share-based awards, adjusted for market-based performance conditions, are expensed uniformly over the vesting period. New or Amended Accounting Standards - Adopted The following accounting standards, amendments and interpretations became effective in the current year: — Disclosure of Accounting Policies: IAS 1 and IFRS Practice Statement 2 — Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction: Amendments to IAS 12 The application of these standards and interpretations effective for the first time in the current year has had no significant impact on the amounts reported in the Group Financial Statements . New or Amended Accounting Standards - Not Yet Adopted At the date of authorization of the Group Financial Statements , the following standards and interpretations, which have not been applied in the Group Financial Statements , were in issue but not yet effective. It is expected that where applicable, these standards and amendments will be adopted on each respective effective date. None of these standards are expected to have a significant impact on the Group. Amendments to IFRS Effective Date Classification of Liabilities as Current or Non-Current and Non-Current Liabilities with Covenants Annual periods beginning on or after January 1, 2024 |
SIGNIFICANT ACCOUNTING JUDGMENT
SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Judgements And Estimates [Abstract] | |
SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES | NOTE 4 - SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) In application of the Group's accounting policies, described in Note 3 , the Directors have made the following judgments and estimates which may have a significant effect on the amounts recognized in the Group Financial Statements . Significant Judgments BUSINESS COMBINATIONS AND ASSET ACQUISITIONS The Group follows the guidance in IFRS 3, Business Combinations (“IFRS 3”) for determining the appropriate accounting treatment for acquisitions. IFRS 3 permits an initial fair value assessment to determine if substantially all of the fair value of the assets acquired is concentrated in a single asset or group of similar assets, the “concentration test”. If the initial screening test is not met, the asset is considered a business based on whether there are inputs and substantive processes in place. Based on the results of this analysis and conclusion on an acquisition’s classification of a business combination or an asset acquisition, the accounting treatment is derived. If the acquisition is deemed to be a business, the acquisition method of accounting is applied. Identifiable assets acquired and liabilities assumed at the acquisition date are recorded at fair value. When the fair value exceeds the consideration transferred, a bargain purchase gain is recognized. Conversely, when the consideration transferred exceeds the fair value, goodwill is recorded. If the transaction is deemed to be an asset purchase, the cost accumulation and allocation model is used whereby the assets and liabilities are recorded based on the purchase price and allocated to the individual assets and liabilities based on relative fair values. As a result, gain on bargain purchases are not recognized on asset acquisitions. Additionally, in instances when the acquisition of a group of assets contains contingent consideration, the Group records changes in the fair value of the contingent consideration through the basis of the asset acquired rather than through the Consolidated Statement of Comprehensive Income. More information regarding conclusions reached with respect to this judgment is included in Note 5 . The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed are based on various market participant assumptions and valuation methodologies requiring considerable judgment by management. The most significant variables in these valuations are discount rates and other assumptions and estimates used to determine the cash inflows and outflows. Management determines discount rates based on the risk inherent in the acquired assets, specific risks, industry beta and capital structure of guideline companies. The valuation of an acquired business is based on available information at the acquisition date and assumptions that are believed to be reasonable. However, a change in facts and circumstances as of the acquisition date can result in subsequent adjustments during the measurement period, but no later than one year from the acquisition date. Significant Estimates ESTIMATING THE FAIR VALUE OF ACQUIRED NATURAL GAS AND OIL PROPERTIES The Group determines the fair value of its natural gas and oil properties acquired in business combinations using the income approach based on expected discounted future cash flows from estimated reserve quantities, costs to produce and develop reserves, and natural gas and oil forward prices. The future net cash flows are discounted using a weighted average cost of capital as well as any additional risk factors. Proved reserves are estimated by reference to available geological and engineering data and only include volumes for which access to market is assured with reasonable certainty. Estimates of proved reserves are inherently imprecise, require the application of judgment and are subject to regular revision, either upward or downward, based on new information such as from the drilling of additional wells, observation of long-term reservoir performance under producing conditions and changes in economic factors, including product prices, contract terms or development plans. IMPAIRMENT OF NATURAL GAS AND OIL PROPERTIES In preparing the Group Financial Statements the Directors consider that a key judgment is whether there is any evidence that the natural gas and oil properties are impaired. When making this assessment, producing assets are reviewed for indicators of impairment at the balance sheet date. Indicators of impairment for the Group’s producing assets can include significant or prolonged: — Decreases in commodity pricing or other negative changes in market conditions; — Downward revisions of reserve estimates; or — Increases in operating costs. The Group reviews the carrying value of its natural gas and oil properties on a field basis annually or when an indicator of impairment is identified. The impairment test compares the carrying value of natural gas and oil properties to their recoverable amount based on the present value of estimated future net cash flows from the proved natural gas and oil reserves. The future cash flows are calculated using estimated reserve quantities, costs to produce and develop reserves, and natural gas and oil forward prices. The fair value of proved reserves is estimated by reference to available geological and engineering data and only includes volumes for which access to market is assured with reasonable certainty. When the carrying value is in excess of the fair value, the Group recognizes an impairment by writing down the value of its natural gas and oil properties to their fair value. During the year ended December 31, 2023 , the Group determined that the carrying amounts of certain proved properties for two fields were not recoverable from future cash flows and recognized an impairment charge of $41,616 . The Group assessed the sensitivity of the impairment analysis and noted the primary assumptions include pricing and the selected discount rate. The Group performed the sensitivity analysis below under different scenarios considering the results of the Group’s impairment assessment by field under the following scenarios: 1) a high and low pricing environment, using historically observed average annual high and low prices for natural gas and oil over the last 10 years; and 2) a high and low selected discount rate, using rates that the Group has observed in completed acquisitions over the last three years. These changes in assumptions could have the following impact on the Group’s impairment analysis as of December 31, 2023 : Impact from Pricing Scenario 1 (a) Scenario 2 (b) Headroom/(impairment) $ (473,510) $ 7,532,007 (a) Scenario 1 includes commodity base prices of $2.04 and $39.23 for natural gas and oil, respectively, representing the lowest annual average over the last 10 years. Under this scenario, 4 fields are impaired for a total impairment charge of $473,510 . (b) Scenario 2 includes commodity base prices of $6.42 and $94.79 for natural gas and oil, respectively, representing the highest annual average over the last 10 years. Under this scenario, no fields are impaired. Impact from Discount Rate Scenario 1 (a) Scenario 2 (b) Headroom/(impairment) $ 1,253,634 $ 627,047 (a) Scenario 1 represents the Group’s reserves at a discount rate of 9.5% , which represents the lowest rate used by the Group in an acquisition over the past 3 years. Under this scenario, 1 field is impaired for a total impairment charge of $7,265 . (b) Scenario 2 represents the Group’s reserves at a discount rate of 13.5% , which represents the highest rate used by the Group in an acquisition over the past 3 years. Under this scenario, 2 fields are impaired for a total impairment charge of $134,459 . No such impairments were recorded during the years ended December 31, 2022 and 2021 . Refer to Note 10 for additional information regarding the Group’s impairment assessment . Where there has been a charge for impairment in an earlier period, that charge will be reversed in a later period when there has been a change in circumstances to the extent that the recoverable amount is higher than the net book value at the time. In reversing impairment losses, the carrying amount of the asset will be increased to the lower of its original carrying value or the carrying value that would have been determined (net of depletion) had no impairment loss been recognized in prior years. No such recoveries were recorded during the years ended December 31, 2023 , 2022 , and 2021 . Please refer to Note 10 for additional information. When applicable, the Group recognizes impairment losses in the Consolidated Statement of Comprehensive Income in those expense categories consistent with the function of the impaired asset. RESERVE VOLUME ESTIMATES Proved reserves are the estimated volumes of natural gas, oil and NGLs that can be economically produced with reasonable certainty from known reservoirs under existing economic conditions and operating methods. In estimating proved natural gas and oil reserves, we rely on interpretations and judgment of available geological, geophysical, engineering and production data as well as the use of certain economic assumptions such as commodity pricing. Additional assumptions include operating expenses, capital expenditures and taxes. Many of the factors, assumptions and variables involved in estimating proved reserves are subject to change over time and therefore affect the estimates of natural gas, oil and NGL reserve volumes. TAXATION The Group makes certain estimates in calculating deferred tax assets and liabilities, as well as income tax expense. These estimates often involve judgment regarding differences in the timing and recognition of revenue and expenses for tax and financial reporting purposes as well as the tax basis of our assets and liabilities at the balance sheet date before tax returns are completed. Additionally, the Group must assess the likelihood that it will be able to recover or utilize its deferred tax assets and record a valuation allowance against deferred tax assets when all or a portion of that asset is not expected to be realized. In evaluating whether a valuation allowance should be applied, the Group considers evidence such as future taxable income, among other factors. This determination involves numerous judgments and assumptions and includes estimating factors such as commodity prices, production and other operating conditions. If any of those factors, assumptions or judgments change, the deferred tax asset could change and, in particular, decrease in a period where the Group determines it is more likely than not that the asset will not be realized. Alternatively, a valuation allowance may be reversed where it is determined it is more likely than not that the asset will be realized. ASSET RETIREMENT OBLIGATION COSTS The ultimate asset retirement obligation costs are uncertain and cost estimates can vary in response to many factors including changes to relevant legal requirements, the emergence of new restoration techniques or experience at other production sites. The expected timing and amount of expenditures can also change, for example, in response to changes in reserves or changes in laws and regulations or their interpretation. As a result, significant estimates and assumptions are made in determining the provision for asset retirement. These assumptions include the cost to retire the wells , the Group’s retirement plan, an assumed inflation rate and the discount rate. Changes in assumptions related to the Group’s asset retirement obligations could result in a material change in the carrying value within the next financial year. See Note 19 for more information and sensitivity analysis. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions And Divestitures [Abstract] | |
ACQUISITIONS AND DIVESTITURES | NOTE 5 - ACQUISITIONS AND DIVESTITURES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The assets acquired in all acquisitions include the necessary permits, rights to production, royalties, assignments, contracts and agreements that support the production from wells and operation of pipelines. The Group determines the accounting treatment of acquisitions using IFRS 3. As part of the Group’s corporate strategy, it actively seeks to acquire assets when they meet the Group’s acquisition criteria of being long-life, low-decline assets that strategically complement the Group’s existing portfolio . 2023 Acquisitions TANOS ENERGY HOLDINGS II LLC (“TANOS II”) ASSET ACQUISITION On March 1, 2023 the Group acquired certain upstream assets and related infrastructure in the Central Region from Tanos II . Given the concentration of assets, this transaction was considered an asset acquisition rather than a business combination. When making this determination management performed an asset concentration test considering the fair value of the acquired assets. The Group paid purchase consideration of $262,329 , inclusive of transaction costs of $936 and customary purchase price adjustments. The Group funded the purchase with proceeds from the February 2023 equity raise, cash on hand and existing availability on the Credit Facility for which the borrowing base was upsized concurrent to the closing of the Tanos II transaction. Refer to Notes 16 and 21 for additional information regarding the Group’s share capital and borrowings. In the period from its acquisition to December 31, 2023 the Tanos II assets increased the Group’s revenue by $45,589 . The assets and liabilities assumed were as follows: Consideration paid Cash consideration $ 262,329 Total consideration $ 262,329 Net assets acquired Natural gas and oil properties $ 263,056 Asset retirement obligations, asset portion 3,250 Property, plant and equipment 234 Derivative financial instruments, net 7,449 Other receivables 1,729 Asset retirement obligations, liability portion (3,250) Other current liabilities (10,139) Net assets acquired $ 262,329 2023 Divestitures SALE OF EQUITY INTEREST IN DP LION EQUITY HOLDCO LLC In November 2023, the Group formed DP Lion Equity Holdco LLC, a limited-purpose, bankruptcy-remote, wholly-owned subsidiary, to issue Class A and Class B asset-backed securities (collectively “ABS VII”) which are secured by certain upstream producing assets in Appalachia. The Class A and B asset backed securities were issued in aggregate principal amounts of $142,000 and $20,000 , respectively. In December 2023 , the Group divested 80% of the equity ownership in DP Lion Equity Holdco LLC to outside investors, generating cash proceeds of $30,000 . The Group evaluated the remaining 20% interest in DP Lion Equity Holdco LLC and determined that the governance structure is such that the Group does not have the ability to exercise control, joint control, or significant influence over the DP Lion Equity Holdco LLC entity. Accordingly, this entity is not consolidated within the Group’s financial statements as of December 31, 2023 . The total assets and liabilities divested are no longer consolidated within the Group’s financial statements and were as follows: Consideration received Cash consideration $ (30,000) Total consideration $ (30,000) Net assets divested Natural gas and oil properties $ (142,891) Restricted cash (7,345) Derivative financial instruments, net (20,328) Other assets (8,140) Borrowings 154,966 Other liabilities 9,288 Net assets divested $ (14,450) Cost basis of investment retained 2,890 Gain on sale of equity interest $ (18,440) The consideration exceeded the fair value of the Group’s portion of the assets and liabilities divested resulting in a gain on sale of the equity interest of $18,440 . The Group’s remaining investment in the LLC is accounted for as an equity instrument at fair value in accordance with IFRS 9, Financial Instruments (“IFRS 9”) and was $7,500 at December 31, 2023, which generated an unrealized gain of $4,610 . On July 17, 2023 , the Group sold undeveloped acreage in Oklahoma, within the Group’s Central Region, for net consideration of approximately $16,060 . The consideration received exceeded the fair value of the net assets divested resulting in a gain on natural gas and oil properties and equipment of $13,619 . On June 27, 2023 , the Group sold certain non-core, non-operated assets within its Central Region for gross consideration of approximately $37,589 . The divested assets were located in Texas and Oklahoma and consisted of non-operated wells and the associated leasehold acreage that was acquired as part of the ConocoPhillips Asset Acquisition in September 2022 . This sale of non-operated and non-core assets aligns with the Group’s application of the Smarter Asset Management strategy and its strategic focus on operated proved developed producing assets. Additionally, during the year ended December 31, 2023 , the Group divested certain other non-core undeveloped acreage across its operating footprint for consideration of approximately $12,100 . The consideration received exceeded the fair value of the net assets divested resulting in a gain on natural gas and oil properties and equipment of $10,547 . 2022 Acquisitions CONOCOPHILLIPS ASSET ACQUISITION On September 27, 2022 the Group acquired certain upstream assets and related facilities within the Central Region from ConocoPhillips. Given the concentration of assets, this transaction was considered an asset acquisition rather than a business combination. When making this determination management performed an asset concentration test considering the fair value of the acquired assets. The Group paid purchase consideration of $209,766 , including customary purchase price adjustments. Transaction costs associated with the acquisition were negligible. The Group funded the purchase with available cash on hand and a draw on the Credit Facility. In the period from its acquisition to December 31, 2022 the ConocoPhillips assets increased the Group’s revenue by $25,217 . EAST TEXAS ASSET ACQUISITION On April 25, 2022 , the Group acquired a proportionate 52.5% working interest in certain upstream assets and related facilities within the Central Region from a private seller in conjunction with Oaktree, via the previously disclosed participation agreement between the two parties. Given the concentration of assets, this transaction was considered an asset acquisition rather than a business combination. When making this determination, the Group performed an asset concentration test considering the fair value of the acquired assets. The Group paid purchase consideration of $47,468 , including customary purchase price adjustments. Transaction costs associated with the acquisition were $1,550 . The Group funded the purchase with available cash on hand and a draw on the Credit Facility. OTHER ACQUISITIONS During the period ended December 31, 2022 the Group acquired three asset retirement companies for an aggregate consideration of $13,949 , inclusive of customary purchase price adjustments. The Group will also pay an additional $3,150 in deferred consideration through November 2024. During the year ended December 31, 2023 , the Group paid $2,100 of the deferred consideration. When evaluating these transactions, the Group determined they did not have significant asset concentrations and as a result it had acquired identifiable sets of inputs, processes and outputs and concluded the transactions were business combinations. On April 1, 2022 the Group acquired certain midstream assets, inclusive of a processing facility, in the Central Region that are contiguous to its existing East Texas assets. The Group paid purchase consideration of $10,139 , inclusive of customary purchase price adjustments and transaction costs. When evaluating the transaction, the Group determined it did not have significant asset concentration and as a result it had acquired an identifiable set of inputs, processes and outputs and accordingly concluded the transaction was a business combination. The fair value of the net assets acquired was $10,742 generating a bargain purchase gain of $603 . On November 21, 2022 the Group acquired certain midstream assets in the Central Region that are contiguous to its existing East Texas assets. The Group paid purchase consideration of $7,438 , inclusive of customary purchase price adjustments and transaction costs. Given the concentration of assets, this transaction was considered an asset acquisition rather than a business combination. Transaction costs associated with the other acquisitions noted above were insignificant and the Group funded the aggregate cash consideration with existing cash on hand. 2021 Acquisitions TAPSTONE ENERGY HOLDINGS LLC (“TAPSTONE”) BUSINESS COMBINATION On December 7, 2021 , the Group acquired a proportionate 51.25% working interest in certain upstream assets, field infrastructure, equipment, and facilities within the Central Region from Tapstone in conjunction with Oaktree, via the previously disclosed participation agreement between the two parties. The acquisition also included six wells which were under development at the time of close which have now been completed by the Group. The Group serves as the sole operator of the assets. When evaluating the transaction, the Group determined it did not have significant asset concentration and as a result it had acquired an identifiable set of inputs, processes and outputs and concluded the transaction was a business combination that resulted in a bargain purchase gain. The Group paid purchase consideration of $177,496 , inclusive customary purchase price adjustments. During 2022, the Group recorded $3,853 in measurement period adjustments as purchase accounting was finalized. These adjustments were recorded as an increase in the bargain purchase gain associated with the transaction. Transaction costs associated with the acquisition were $4,039 and were expensed. The Group funded the purchase with proceeds from the Credit Facility. In connection with the acquisition the Group also acquired the beneficial ownership in the Chesapeake Granite Wash Trust (“the GWT”). The Group consolidated the GWT as it had determined that it controls the GWT because it (1) possesses power over the GWT, (2) has exposure to variable returns from its involvement with the GWT, and (3) has the ability to use its power over the GWT to affect its returns. The elements of control are achieved through the Group operating a majority of the natural gas and oil properties that are subject to the conveyed royalty interests, marketing of the associated production, and through its ownership of 50.8% of the outstanding common units of the GWT. The common units of the GWT owned by third parties have been reflected as a non-controlling interest in the consolidated financial statements. Common units outstanding as of December 7, 2021 were 46,750 with the Group’s beneficial interests in the GWT representing 50.8% . The GWT is publicly traded and the GWT’s market capitalization was utilized when determining the value of the non-controlling interests. The GWT’s non-controlling interest is heavily concentrated in the acquired Tapstone natural gas and oil properties and as a result the Group consolidated $16,087 into its natural gas and oil properties associated with this non-controlling interest as of December 31, 2021. The remaining amounts in the Group’s Consolidated Statement of Financial Position associated with non- controlling interest were immaterial and working capital in nature. TANOS ENERGY HOLDINGS III, LLC (“TANOS”) BUSINESS COMBINATION On August 18, 2021 , the Group acquired a 51.25% working interest in certain upstream assets, field infrastructure, equipment and facilities within the Central Region from Tanos, in conjunction with Oaktree, via the previously disclosed participation agreement between the two parties. When evaluating the transaction, the Group determined it did not have significant asset concentration and as a result it had acquired an identifiable set of inputs, processes and outputs and concluded the transaction was a business combination. The Group paid purchase consideration of $116,061 , including customary purchase price adjustments. Transaction costs associated with the acquisition were $2,384 and were expensed. DEC funded the purchase with proceeds from a drawdown on the Credit Facility. During 2022 purchase accounting was finalized and no measurement period adjustments were recorded. As part of the acquisition, the Group obtained the option to novate or extinguish the Tanos hedge book. In conjunction with the closing settlement, the Group elected to extinguish their share of the Tanos hedge book. The cost to terminate was $52,666 . This payment relieved the termination liability established in the Group’s Consolidated Statement of Financial Position in purchase accounting and has been presented as an investing activity in the Consolidated Statement of Cash Flows given its connection to the Tanos acquisition. New contracts were subsequently entered into for more favorable pricing in order to secure the cash flows associated with these producing assets. BLACKBEARD OPERATING LLC (“BLACKBEARD”) ASSET ACQUISITION On July 5, 2021 , the Group acquired certain upstream assets and related gathering infrastructure in the Central Region from Blackbeard. Given the concentration of assets this transaction was considered an asset acquisition rather than a business combination. When making this determination management performed an asset concentration test considering the fair value of the acquired assets. The Group paid purchase consideration of $170,523 , including customary purchase price adjustments and transaction costs. Transaction costs associated with the acquisition were $3,644 and were capitalized to natural gas and oil properties. The Group funded the purchase with proceeds from the May 2021 equity placement and a draw on the Credit Facility, discussed in Notes 16 and 21 , respectively. During 2022 purchase accounting was finalized and no measurement period adjustments were recorded. INDIGO ASSET ACQUISITION On May 19, 2021 , the Group acquired certain upstream assets and related gathering infrastructure in the Central Region from Indigo. Given the concentration of assets this transaction was considered an acquisition of assets rather than a business combination. When making this determination management performed an asset concentration test considering the fair value of the acquired assets. The Group paid purchase consideration of $117,352 , including customary purchase price adjustments and transaction costs. Transaction costs associated with the acquisition were $473 and were capitalized to natural gas and oil properties. The Group funded the purchase with proceeds from the May 2021 equity placement and a draw on the Credit Facility, discussed in Notes 16 and 21 , respectively. During 2022 purchase accounting was finalized and no measurement period adjustments were recorded. 2021 Divestitures INDIGO MINERALS LLC (“INDIGO”) DIVESTITURE On July 9, 2021 , the Group divested to Oaktree a non-operating 48.75% proportionate working interest in the Indigo assets that were previously acquired (as disclosed above) by the Group on May 19, 2021 . The initial consideration received was $52,314 , or 50% of the Group’s net purchase price on the Indigo assets which is consistent with the terms of the previously disclosed participation agreement between the Group and Oaktree. The Group used the proceeds to reduce outstanding balances on the Credit Facility. In connection with the divestiture, the Group entered into a swap contract with Oaktree where the Group received a market price and paid a fixed weighted average swap price of $2.86 per Mcfe. When considering the fair value of the swap arrangement as well as the value of the upfront promote received from Oaktree at the date of close the Group realized a loss of $1,461 on the divestiture. OTHER DIVESTITURES On December 23, 2021 , the Group divested certain predominantly undeveloped Haynesville Shale acreage in Texas, acquired as part of the Tanos acquisition. The total consideration received was $66,168 with DEC’s 51.25% interest through joint ownership with Oaktree generating net proceeds of $33,911 to DEC inclus ive of customary purchase price adjustments. PRO FORMA INFORMATION (UNAUDITED ) The following table summarizes the unaudited pro forma condensed financial information of the Group as if the Indigo, Blackbeard, Tanos and Tapstone acquisitions each had occurred on January 1, 2021, the East Texas Assets and ConocoPhillips acquisition each had occurred on January 1, 2022, and the Tanos II acquisition had occurred on January 1, 2023. Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Revenues $ 883,347 $ 2,010,927 $ 1,249,983 Net income (loss) 804,649 (594,097) (279,121) The unaudited pro forma information is not necessarily indicative of the operating results that would have occurred had the the Indigo, Blackbeard, Tanos and Tapstone acquisitions each been completed at January 1, 2021, the East Texas Assets and ConocoPhillips acquisitions each been completed at January 1, 2022, and the Tanos II acquisition been completed at January 1, 2023, nor is it necessarily indicative of future operating results of the combined entities. The unaudited pro forma information gives effect to the acquisitions and any related equity and debt issuances, along with the use of proceeds therefrom, as if they had occurred on the respective dates discussed above and is a result of combining the statements of operations of the Group with the pre-acquisition results of Indigo, Blackbeard, Tanos, Tapstone, East Texas Assets, ConocoPhillips, and Tanos II including adjustment for revenues and direct expenses. The pro forma results exclude any cost savings anticipated as a result of the acquisitions, and include adjustments to depreciation, depletion and amortization based on the purchase price allocated to property, plant and equipment and the estimated useful lives as well as adjustments to interest expense. Subsequent Event |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2023 | |
Revenue [abstract] | |
REVENUE | NOTE 6 - REVENUE (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The Group extracts and sells natural gas, NGLs and oil to various customers as well as operating a majority of these natural gas and oil wells for customers and other working interest owners. In addition, the Group provides gathering and transportation services as well as asset retirement and other services to third parties. All revenue was generated in the U.S. The following table reconciles the Group's revenue for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Natural gas $ 557,167 $ 1,544,658 $ 818,726 NGLs 141,321 188,733 115,747 Oil 103,911 139,620 38,634 Total commodity revenue $ 802,399 $ 1,873,011 $ 973,107 Midstream 30,565 32,798 31,988 Other (a) 35,299 13,540 2,466 Total revenue $ 868,263 $ 1,919,349 $ 1,007,561 (a) Includes $28,360 in third party plugging revenue and $6,939 in other revenue. Refer to Note 3 for additional information. A significant portion of the Group’s trade receivables represent receivables related to either sales of natural gas, NGLs and oil or operational services, all of which are uncollateralized, and are collected within 30 - 60 days. During the year ended December 31, 2023 , no customers individually comprised more than 10% of total revenues. During the year ended December 31, 2022 , no customers individually comprised more than 10% of total revenues. During the year ended December 31, 2021 , two customers individually comprised more than 10% of total revenues, representing 22% of total revenues. |
EXPENSES BY NATURE
EXPENSES BY NATURE | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
EXPENSES BY NATURE | NOTE 7 - EXPENSES BY NATURE (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The following table provides detail of the Group's expenses for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 LOE (a) $ 213,078 $ 182,817 $ 119,594 Production taxes (b) 61,474 73,849 30,518 Midstream operating expenses (c) 69,792 71,154 60,481 Transportation expenses (d) 96,218 118,073 80,620 Total operating expenses $ 440,562 $ 445,893 $ 291,213 Depreciation and amortization 56,453 51,877 44,841 Depletion 168,093 170,380 122,803 Total depreciation, depletion and amortization $ 224,546 $ 222,257 $ 167,644 Employees, administrative costs and professional services (e) 78,659 77,172 56,812 Costs associated with acquisitions (f) 16,775 15,545 27,743 Other adjusting costs (g) 17,794 69,967 10,371 Non-cash equity compensation (h) 6,494 8,051 7,400 Total G&A $ 119,722 $ 170,735 $ 102,326 Recurring allowance for credit losses (i) 8,478 — (4,265) Total expenses $ 793,308 $ 838,885 $ 556,918 Aggregate remuneration (including Directors): Wages and salaries $ 124,834 $ 113,267 $ 83,790 Payroll taxes 10,163 9,516 7,137 Benefits 31,912 23,828 19,083 Total employees and benefits expense $ 166,909 $ 146,611 $ 110,010 (a) LOE includes costs incurred to maintain producing properties. Such costs include direct and contract labor, repairs and maintenance, water hauling, compression, automobile, insurance, and materials and supplies expenses. (b) Production taxes include severance and property taxes. Severance taxes are generally paid on produced natural gas, NGLs and oil production at fixed rates established by federal, state or local taxing authorities. Property taxes are generally based on the taxing jurisdictions’ valuation of the Group’s natural gas and oil properties and midstream assets. (c) Midstream operating expenses are daily costs incurred to operate the Group’s owned midstream assets inclusive of employee and benefit expenses. (d) Transportation expenses are daily costs incurred from third-party systems to gather, process and transport the Group’s natural gas, NGLs and oil. (e) Employees, administrative costs and professional services includes payroll and benefits for our administrative and corporate staff, costs of maintaining administrative and corporate offices, costs of managing our production operations, franchise taxes, public company costs, fees for audit and other professional services and legal compliance. (f) The Group generally incurs costs related to the integration of acquisitions, which will vary for each acquisition. For acquisitions considered to be a business combination, these costs include transaction costs directly associated with a successful acquisition transaction. These costs also include costs associated with transition service arrangements where the Group pays the seller of the acquired entity a fee to handle G&A functions until the Group has fully integrated the assets onto its systems. In addition, these costs include costs related to integrating IT systems and consulting as well as internal workforce costs directly related to integrating acquisitions into the Group’s system. (g) Other adjusting costs for the year ended December 31, 2023 were primarily associated with legal and professional fees related to the U.S. listing, legal fees for certain litigation, and expenses associated with unused firm transportation agreements. Other adjusting costs for the year ended December 31, 2022 primarily consisted of $28,345 in contract terminations which will allow the Group to obtain more favorable pricing in the future and $31,099 in costs associated with deal breakage and/or sourcing costs for acquisitions. Other adjusting costs for the year ended December 31, 2021 were primarily associated with one-time projects and contemplated transactions. Also included in other adjusting costs were expenses associated with unused firm transportation agreements. (h) Non-cash equity compensation reflects the expense recognition related to share-based compensation provided to certain key members of the management team. Refer to Note 17 for additional information regarding non-cash share-based compensation. (i) Allowance for credit losses consists of the recognition and reversal of credit losses. Refer to Note 14 for additional information regarding credit losses. The number of employees was as follows for the years presented (employee count not shown in thousands) : Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Number of production support employees, including Directors 389 362 283 Number of production employees 1,214 1,220 1,143 Workforce 1,603 1,582 1,426 The Directors consider that the Group’s key management personnel comprise the Executive Directors. Bradley G. Gray is included in the Executive Director remuneration below. Mr. Gray was a Director until September 15, 2023, but is no longer a Director as of the date of this Annual Report & Form 20-F . The fixed pay figures included in the table represent Mr. Gray’s prorated compensation for the year ended December 31, 2023. The Directors’ remuneration was as follows for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Executive Directors Salary $ 1,073 $ 1,157 $ 1,119 Taxable benefits (a) 20 24 22 Benefit plan (b) 46 73 71 Bonus (c) 1,130 1,631 1,427 Long-term incentives (c) 2,322 3,193 3,018 Total Executive Directors' remuneration $ 4,591 $ 6,078 $ 5,657 Non-Executive Directors Fees $ 994 $ 911 $ 683 Total Non-Executive Directors' remuneration $ 994 $ 911 $ 683 Total remuneration $ 5,585 $ 6,989 $ 6,340 (a) Taxable benefits were comprised of life insurance premiums and automobile reimbursements. (b) Reflects matching contributions under the Group’s 401(k) plan. (c) Further details of the bonus outcome for 2023 and long-term incentives can be found in the Remuneration Committee’s Report within this Annual Report & Form 20-F . Details of the highest paid Director’s aggregate emoluments and amounts receivable under long-term incentive schemes are disclosed in the Remuneration Committee’s Report within this Annual Report & Form 20-F . Auditors’ remuneration for the Group was as follows for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Auditors' remuneration Fees payable to the Group’s external auditors and their associates for the audit of the consolidated financial statements (a) $ 2,140 $ 1,790 $ 1,694 Fees payable for the audit of the financial statements of the Company's subsidiaries (b) 150 160 — Audit-related assurance services (c) 1,078 874 1,628 Other assurance services 13 — — Total auditors' remuneration $ 3,381 $ 2,824 $ 3,322 (a) 2023 fees include $249 in relation to additional fees agreed and billed in post signing the 2022 consolidated accounts. (b) 2022 fees have been revised to reflect additional scope change for the audit of the subsidiary accounts. (c) Fees associated with the Group’s interim review and capital market activity which is outside the scope of the audit of the consolidated financial statements. 2022 fees have been revised to reflect additional work performed for the interim review. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax [Abstract] | |
TAXATION | NOTE 8 - TAXATION (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The Group files a consolidated U.S. federal tax return, multiple state tax returns, and a separate UK tax return for the Parent entity. The consolidated taxable income includes an allocable portion of income from the Group’s co-investments with Oaktree and its investment in the Chesapeake Granite Wash Trust. Income taxes are provided for the tax effects of transactions reported in the Group Financial Statements and consist of taxes currently due plus deferred taxes related to differences between the basis of assets and liabilities for financial and income tax reporting. For the taxable years ended December 31, 2023 , 2022 , and 2021 , the Group had a tax expense of $240,643 , benefit of $178,904 and benefit of $225,694 , respectively. The effective tax rate used for the year ended December 31, 2023 was 24.1% , compared to 22.4% for the year ended December 31, 2022 and 41.0% for the year ended December 31, 2021 . The December 31, 2023 effective tax rate was primarily impacted by changes in state taxes as a result of acquisitions and recurring permanent differences. The December 31, 2022 effective tax rate was primarily impacted by changes in state taxes as a result of acquisitions. The December 31, 2021 effective tax rate was primarily impacted by the Group’s recognition of the U.S. marginal well tax credit available to qualified producers in 2021, who operate lower-volume wells during a low commodity pricing environment. The federal government provides these credits to encourage companies to continue operating lower- volume wells during periods of low prices to maintain the underlying jobs they create and the state and local tax revenues they generate for communities to support schools, social programs, law enforcement and other similar public services. The U.S. marginal well tax credit is prescribed by Internal Revenue Code Section 45I and is available for certain natural gas production from qualifying wells. The federal tax credit is intended to provide a benefit for wells producing less than 90 Mcfe per day when market prices for natural gas for the previous tax year are relatively low. The Group benefited from this credit given its portfolio of long-life, low-decline conventional wells. The tax credit was not available for tax year 2023 and 2022 due to improved commodity prices during 2022 and 2021. The provision for income taxes in the Consolidated Statement of Comprehensive Income is summarized below: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Current income tax (benefit) expense Federal (benefit) expense $ 7,289 $ (513) $ 25,738 State (benefit) expense 5,902 2,841 11,958 Foreign - UK (benefit) expense — 107 (52) Total current income tax (benefit) expense $ 13,191 $ 2,435 $ 37,644 Deferred income tax (benefit) expense Federal (benefit) expense $ 202,133 $ (169,531) $ (233,679) State (benefit) expense 25,460 (11,863) (29,597) Foreign - UK (benefit) expense (141) 55 (62) Total deferred income tax (benefit) expense $ 227,452 $ (181,339) $ (263,338) Total income tax (benefit) expense $ 240,643 $ (178,904) $ (225,694) The effective tax rates and differences between the statutory U.S. federal income tax rate and the effective tax rates are summarized as follows: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Income (loss) before taxation $ 1,000,344 $ (799,502) $ (550,900) Income tax benefit (expenses) (240,643) 178,904 225,694 Effective tax rate 24.1% 22.4% 41.0% Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Expected tax at statutory U.S. federal income tax rate 21.0% 21.0% 21.0% State income taxes, net of federal tax benefit 3.1% 1.2% 4.4% Federal credits —% —% 15.4% Other, net —% 0.2% 0.2% Effective tax rate 24.1% 22.4% 41.0% The Group had a net deferred tax asset of $131,206 at December 31, 2023 compared to a net deferred tax asset of $358,666 at December 31, 2022 . The change was primarily due to a poor commodity price environment generating unrealized gains for unsettled derivatives not recognized for tax purposes. The Group had a net deferred tax asset of $358,666 at December 31, 2022 compared to a net deferred tax asset of $176,954 at December 31, 2021 . The change was primarily due to an improved commodity price environment generating unrealized losses for unsettled derivatives not recognized for tax purposes. The presentation in the balance sheet takes into consideration the offsetting of deferred tax assets and deferred tax liabilities within the same tax jurisdiction, where permitted. The overall deferred tax position in a particular tax jurisdiction determines if a deferred tax balance related to that jurisdiction is presented within deferred tax assets or deferred tax liabilities. The following table presents the components of the net deferred tax asset included in non-current assets as of the periods presented: December 31, 2023 December 31, 2022 Deferred tax asset Asset retirement obligations $ 103,998 $ 92,393 Derivative financial instruments 153,057 378,918 Allowance for doubtful accounts 4,235 2,378 Net operating loss carryover 686 3,865 Federal tax credits carryover 163,158 184,975 163(j) interest expense limitation 24,324 15,573 Other 8,695 18,934 Total deferred tax asset $ 458,153 $ 697,036 Deferred tax liability Amortization and depreciation $ (252,587) $ (255,440) Investment in partnerships (74,360) (82,930) Total deferred tax liability $ (326,947) $ (338,370) Net deferred tax asset (liability) $ 131,206 $ 358,666 Balance sheet presentation Deferred tax asset $ 144,860 $ 371,156 Deferred tax liability (13,654) (12,490) Net deferred tax asset (liability) $ 131,206 $ 358,666 In assessing the realizability of deferred tax assets, the Group considers whether it is probable that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible or before credits expire. The Group considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The Group has determined, at this time, it will have sufficient future taxable income to recognize its deferred tax assets. The Group reported the effects of deferred tax expense as of and for the year ended December 31, 2023 : Opening Balance Consolidated Statement of Comprehensive Income Other (a) Closing Balance Asset retirement obligations $ 92,393 $ 11,605 $ — $ 103,998 Allowance for doubtful accounts 2,378 1,857 — 4,235 Net operating loss carryover 3,865 (3,179) — 686 Federal tax credits carryover 184,975 (21,817) — 163,158 Property, plant, and equipment and natural gas and oil properties (255,440) 2,853 — (252,587) Derivative financial instruments 378,918 (225,861) — 153,057 Investment in partnerships (82,930) 8,570 — (74,360) 163(j) interest expense limitation 15,573 8,751 24,324 Other 18,934 (10,231) (8) 8,695 Total deferred tax asset (liability) $ 358,666 $ (227,452) $ (8) $ 131,206 (a) Amounts primarily relate to deferred taxes acquired as part of acquisition purchase accounting. The Group reported the effects of deferred tax expense as of and for the year ended December 31, 2022 : Opening Balance Consolidated Statement of Comprehensive Income Other (a) Closing Balance Asset retirement obligations $ 114,182 $ (21,789) $ — $ 92,393 Allowance for doubtful accounts 1,734 644 — 2,378 Net operating loss carryover 562 3,360 (57) 3,865 Federal tax credits carryover 183,460 1,515 — 184,975 Property, plant, and equipment and natural gas and oil properties (266,987) 11,360 187 (255,440) Derivative financial instruments 202,802 176,116 — 378,918 Investment in partnerships (72,105) (11,068) 243 (82,930) 163(j) interest expense limitation — 15,573 15,573 Other 13,306 5,628 — 18,934 Total deferred tax asset (liability) $ 176,954 $ 181,339 $ 373 $ 358,666 (a) Amounts primarily relate to deferred taxes acquired as part of acquisition purchase accounting. The Group reported the effects of deferred tax expense as of and for the year ended December 31, 2021 : Opening Balance Consolidated Statement of Comprehensive Income Other (a) Closing Balance Asset retirement obligations $ 90,949 $ 19,052 $ 4,181 $ 114,182 Allowance for doubtful accounts 2,968 (1,320) 86 1,734 Net operating loss carryover 474 (1,655) 1,743 562 Federal tax credits carryover 99,117 84,343 — 183,460 Property, plant, and equipment and natural gas and oil properties (244,874) 65,910 (88,023) (266,987) Derivative financial instruments 46,237 156,565 — 202,802 Investment in partnerships — (67,379) (4,726) (72,105) Other 4,160 7,822 1,324 13,306 Total deferred tax asset (liability) $ (969) $ 263,338 $ (85,415) $ 176,954 (a) Amounts primarily relate to deferred taxes acquired as part of acquisition purchase accounting. The Group’s material deferred tax assets and liabilities all arise in the U.S. For U.S. federal tax purposes, the Group is taxed as one consolidated entity. The Group’s co-investments with Oaktree and its investment in the Chesapeake Granite Wash Trust are taxed as partnerships that pass through to the Group’s consolidated return. The Group is subject to additional taxes in its domiciled jurisdiction of the UK. For the years ended December 31, 2023 , 2022 , and 2021 , the Group incurred no tax impact, an expense of $107 , and a benefit of $52 in the UK, respectively. The Group has considered the impact of Pillar Two income taxes and does not expect this to impact current tax expense in the current year. The Group had no uncertain tax position liabilities as of December 31, 2023 , 2022 or 2021 . As of December 31, 2023 , the Group had U.S. federal net operating loss carryforwards (“NOLs”) of approximately $1,600 , of which $1,504 are subject to limitation. Additionally, the Group had U.S. state NOLs of approximately $4,025 , which expire in the years 2035 through 2038 . The Group had U.S. marginal well tax credit carryforwards of approximately $163,158 as of December 31, 2023 compared to $184,975 as of December 31, 2022 . The Group had U.S. marginal well tax credit carryforwards of approximately $184,975 as of December 31, 2022 compared to $183,460 as of December 31, 2021 . As discussed earlier, the federal tax credit is intended to provide a benefit for wells producing less than 90 Mcfe per day when market prices for natural gas are relatively low. Due to the improved commodity price environment in 2022, the Group did not generate federal tax credits for the year ended December 31, 2023 . The tax credits expire in the years 2038 through 2042 . The Group had no U.S. federal capital loss carryforwards as of December 31, 2023 compared to $21,401 as of December 31, 2022 . The Group had U.S. federal capital loss carryforwards of $21,401 as of December 31, 2022 compared to $9,904 as of December 31, 2021 . For the year ended December 31, 2023 , no capital loss carryforwards expired. The Group utilized all of the existing capital loss carryforward in the amount of $23,102 in 2023, therefore there is no capital loss carryforward going into 2024. The Group completed a Section 382 study through December 31, 2023 in accordance with the Internal Revenue Code of 1986, as amended. If the Group experiences an ownership change, tax credit carryforwards can be utilized but are limited each year and could expire before they are fully utilized. The study concluded that the Group has not experienced an ownership change as defined by Section 382 since the last ownership change that occurred on January 31, 2018. The Directors expect its tax credit carryforwards, limited by the January 31, 2018 ownership change, to be fully available for utilization by 2024. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 9 - EARNINGS (LOSS) PER SHARE (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The calculation of basic earnings (loss) per share is based on n et income (loss) and on the weighted average number of shares outstanding during the period. The calculation of diluted earnings per share is based on net income (loss) and the weighted average number of shares outstanding plus the weighted average number of shares that would be issued if dilutive options and warrants were converted into shares on the last day of the reporting period. The weighted average number of shares outstanding for the computation of both basic and diluted earnings (loss) per share excludes shares held as treasury shares in the Employee Benefit Trust (“EBT”), which for accounting purposes are treated in the same manner as shares held in the treasury reserve. Refer to Note 16 for additional information regarding the EBT. Effective December 5, 2023, the Company executed a 20-for-1 consolidation of its outstanding shares. The Group’s weighted average shares outstanding and earnings (loss) per share calculation have been retroactively adjusted for all reporting periods. Basic and diluted earnings (loss) per share are calculated as follows for the periods presented: Year Ended Calculation December 31, 2023 December 31, 2022 December 31, 2021 Net income (loss) attributable to Diversified Energy Company PLC A $ 758,018 $ (625,410) $ (325,509) Weighted average shares outstanding - basic B 47,165 42,204 39,677 Dilutive impact of potential shares 349 — — Weighted average shares outstanding - diluted C 47,514 42,204 39,677 Earnings (loss) per share - basic = A/B $ 16.07 $ (14.82) $ (8.20) Earnings (loss) per share - diluted = A/C $ 15.95 $ (14.82) $ (8.20) Potentially dilutive shares (a) 54 767 325 (a) Outstanding share-based payment awards excluded from the diluted EPS calculation because their effect would have been anti-dilutive. |
NATURAL GAS AND OIL PROPERTIES
NATURAL GAS AND OIL PROPERTIES | 12 Months Ended |
Dec. 31, 2023 | |
Extractive Industries [Abstract] | |
NATURAL GAS AND OIL PROPERTIES | NOTE 10 - NATURAL GAS AND OIL PROPERTIES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The following table summarizes the Group's natural gas and oil properties for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Costs Beginning balance $ 3,062,463 $ 2,866,353 $ 1,968,557 Additions (a) 353,888 219,490 1,012,691 Disposals (b) (209,612) (23,380) (114,895) Ending balance $ 3,206,739 $ 3,062,463 $ 2,866,353 Depletion and impairment Beginning balance $ (506,655) $ (336,275) $ (213,472) Depletion expense (168,093) (170,380) (122,803) Impairment (41,616) — — Ending balance $ (716,364) $ (506,655) $ (336,275) Net book value $ 2,490,375 $ 2,555,808 $ 2,530,078 (a) For the year ended December 31, 2023 , the Group added $266,306 related to acquisitions and $42,650 resulting from normal revisions to the Group’s asset retirement obligations. The remaining change is primarily attributable to recurring capital expenditures. For the year ended December 31, 2022 , the Company added $285,212 related to acquisitions, offset by $98,802 resulting from normal revisions to the Company’s asset retirement obligations. The remaining additions are primarily attributable to capital expenditures associated with the completion of five Tapstone wells that were under development as of December 31, 2021, and seven additional wells in which the Group participated with a non-operating interest in Appalachia. The remaining change is primarily attributable to recurring capital expenditures. For the year ended December 31, 2021 , the Group added $907,383 related to acquisitions and $78,156 resulting from normal revisions to the Group’s asset retirement obligations. The remaining change is primarily attributable to recurring capital expenditures and the revaluation of the EQT contingent consideration. Refer to Notes 5 and 19 for additional information regarding acquisitions and asset retirement obligations, respectively. (b) For the year ended December 31, 2023 , the Group divested $202,886 in natural gas and oil properties related to the sale of equity interest in DP Lion Equity Holdco LLC, the divested assets previously acquired as part of the ConocoPhillips Asset Acquisition, and other proved properties and undeveloped acreage divestitures. Disposals for the year ended December 31, 2022 were associated with divestitures of natural gas and oil properties in the normal course of business, none of which were material. For the year ended December 31, 2021 , the Group divested $113,752 in natural gas and oil properties related to the Indigo and Tanos undeveloped acreage transactions. Refer to Note 5 for additional information regarding divestitures. Impairment Assessment for Natural Gas and Oil Properties For the period ended December 31, 2023 , the Directors assessed the indicators of impairment, noting depressed commodity prices represented an indicator of potential impairment. The estimated future cash flows expected in connection with each field are compared to the carrying amount of the field to determine if the carrying amount is recoverable. Due to the unavailability of relevant comparable market data, a discounted cash flow method is used to determine the fair value of proved properties. Significant unobservable inputs (Level 3) utilized in the determination of discounted future net cash flows include future commodity prices adjusted for differentials, forecasted production based on decline curve analysis, estimated future operating costs, property ownership interests, and a 10.9% discount rate. F or the year ended December 31, 2023 , the Company determined the carrying amounts of certain proved properties within two fields were not recoverable from future cash flows, and therefore, were impaired. Such impairments totaled $41,616 for the year ended December 31, 2023 . For the years ended December 31, 2022 and December 31, 2021 , estimated future cash flows were determined to be in excess of cost basis, and therefore no impairments were recorded for the Group’s natural gas and oil properties. NOTE 11 - PROPERTY, PLANT AND EQUIPMENT (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The following tables summarize the Group’s property, plant and equipment for the periods presented: Year Ended December 31, 2023 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 47,682 $ 30,369 $ 66,389 $ 433,484 $ 23,743 $ 601,667 Additions (a) 1,134 3,964 11,715 21,644 4,039 42,496 Disposals (561) (2,097) (6,929) — (1,489) (11,076) Ending balance (b) $ 48,255 $ 32,236 $ 71,175 $ 455,128 $ 26,293 $ 633,087 Accumulated depreciation Beginning balance $ (3,607) $ (7,627) $ (29,194) $ (95,826) $ (2,553) $ (138,807) Period changes (581) (3,024) (12,887) (27,632) (2,720) (46,844) Disposals 27 1,929 5,939 — 877 8,772 Ending balance $ (4,161) $ (8,722) $ (36,142) $ (123,458) $ (4,396) $ (176,879) Net book value $ 44,094 $ 23,514 $ 35,033 $ 331,670 $ 21,897 $ 456,208 Year Ended December 31, 2022 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 41,684 $ 9,492 $ 45,562 $ 398,663 $ 16,039 $ 511,440 Additions (a) 9,421 20,886 22,399 34,835 7,704 95,245 Disposals (3,423) (9) (1,572) (14) — (5,018) Ending balance (b) $ 47,682 $ 30,369 $ 66,389 $ 433,484 $ 23,743 $ 601,667 Accumulated depreciation Beginning balance $ (2,078) $ (4,089) $ (20,186) $ (69,501) $ (1,606) $ (97,460) Period changes (1,819) (3,547) (10,270) (26,330) (947) (42,913) Disposals 290 9 1,262 5 — 1,566 Ending balance $ (3,607) $ (7,627) $ (29,194) $ (95,826) $ (2,553) $ (138,807) Net book value $ 44,075 $ 22,742 $ 37,195 $ 337,658 $ 21,190 $ 462,860 Year Ended December 31, 2021 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 28,190 $ 6,768 $ 35,129 $ 367,331 $ 5,600 $ 443,018 Additions (a) 13,494 2,737 12,700 31,485 10,439 70,855 Disposals — (13) (2,267) (153) — (2,433) Ending balance (b) $ 41,684 $ 9,492 $ 45,562 $ 398,663 $ 16,039 $ 511,440 Accumulated depreciation Beginning balance $ (1,007) $ (2,860) $ (12,409) $ (43,597) $ (1,042) $ (60,915) Period changes (1,071) (1,231) (9,259) (25,928) (564) (38,053) Disposals — 2 1,482 24 — 1,508 Ending balance $ (2,078) $ (4,089) $ (20,186) $ (69,501) $ (1,606) $ (97,460) Net book value $ 39,606 $ 5,403 $ 25,376 $ 329,162 $ 14,433 $ 413,980 (a) Of the $42,496 in 2023 additions, $234 was related to acquisitions and $13,279 was associated with right-of-use asset additions for new leases. Of the $95,245 in 2022 additions, $26,815 was related to acquisitions and $11,295 was associated with right-of-use asset additions for new leases. The remaining capital expenditures are a result of our recurring capital needs and enhanced sustainability efforts. Of the $70,855 in 2021 additions, $25,961 was related to acquisitions and $16,554 was associated with right-of-use asset additions for new and acquired leases. Refer to Notes 5 and 20 for additional information regarding acquisitions and leases, respectively. Remaining additions are related to routine capital projects on the Group’s compressor and gathering systems, vehicle and equipment additions. (b) Buildings and Leasehold Improvements and Motor Vehicles are inclusive of right-of-use assets associated with the Group’s leases. Refer to Note 20 for additional information regarding leases. The Group continued to utilize certain fully depreciated assets during the years ended December 31, 2023 , 2022 and 2021 with an original cost basis of $6,546 , $9,222 and $5,597 , respectively. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 10 - NATURAL GAS AND OIL PROPERTIES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The following table summarizes the Group's natural gas and oil properties for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Costs Beginning balance $ 3,062,463 $ 2,866,353 $ 1,968,557 Additions (a) 353,888 219,490 1,012,691 Disposals (b) (209,612) (23,380) (114,895) Ending balance $ 3,206,739 $ 3,062,463 $ 2,866,353 Depletion and impairment Beginning balance $ (506,655) $ (336,275) $ (213,472) Depletion expense (168,093) (170,380) (122,803) Impairment (41,616) — — Ending balance $ (716,364) $ (506,655) $ (336,275) Net book value $ 2,490,375 $ 2,555,808 $ 2,530,078 (a) For the year ended December 31, 2023 , the Group added $266,306 related to acquisitions and $42,650 resulting from normal revisions to the Group’s asset retirement obligations. The remaining change is primarily attributable to recurring capital expenditures. For the year ended December 31, 2022 , the Company added $285,212 related to acquisitions, offset by $98,802 resulting from normal revisions to the Company’s asset retirement obligations. The remaining additions are primarily attributable to capital expenditures associated with the completion of five Tapstone wells that were under development as of December 31, 2021, and seven additional wells in which the Group participated with a non-operating interest in Appalachia. The remaining change is primarily attributable to recurring capital expenditures. For the year ended December 31, 2021 , the Group added $907,383 related to acquisitions and $78,156 resulting from normal revisions to the Group’s asset retirement obligations. The remaining change is primarily attributable to recurring capital expenditures and the revaluation of the EQT contingent consideration. Refer to Notes 5 and 19 for additional information regarding acquisitions and asset retirement obligations, respectively. (b) For the year ended December 31, 2023 , the Group divested $202,886 in natural gas and oil properties related to the sale of equity interest in DP Lion Equity Holdco LLC, the divested assets previously acquired as part of the ConocoPhillips Asset Acquisition, and other proved properties and undeveloped acreage divestitures. Disposals for the year ended December 31, 2022 were associated with divestitures of natural gas and oil properties in the normal course of business, none of which were material. For the year ended December 31, 2021 , the Group divested $113,752 in natural gas and oil properties related to the Indigo and Tanos undeveloped acreage transactions. Refer to Note 5 for additional information regarding divestitures. Impairment Assessment for Natural Gas and Oil Properties For the period ended December 31, 2023 , the Directors assessed the indicators of impairment, noting depressed commodity prices represented an indicator of potential impairment. The estimated future cash flows expected in connection with each field are compared to the carrying amount of the field to determine if the carrying amount is recoverable. Due to the unavailability of relevant comparable market data, a discounted cash flow method is used to determine the fair value of proved properties. Significant unobservable inputs (Level 3) utilized in the determination of discounted future net cash flows include future commodity prices adjusted for differentials, forecasted production based on decline curve analysis, estimated future operating costs, property ownership interests, and a 10.9% discount rate. F or the year ended December 31, 2023 , the Company determined the carrying amounts of certain proved properties within two fields were not recoverable from future cash flows, and therefore, were impaired. Such impairments totaled $41,616 for the year ended December 31, 2023 . For the years ended December 31, 2022 and December 31, 2021 , estimated future cash flows were determined to be in excess of cost basis, and therefore no impairments were recorded for the Group’s natural gas and oil properties. NOTE 11 - PROPERTY, PLANT AND EQUIPMENT (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The following tables summarize the Group’s property, plant and equipment for the periods presented: Year Ended December 31, 2023 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 47,682 $ 30,369 $ 66,389 $ 433,484 $ 23,743 $ 601,667 Additions (a) 1,134 3,964 11,715 21,644 4,039 42,496 Disposals (561) (2,097) (6,929) — (1,489) (11,076) Ending balance (b) $ 48,255 $ 32,236 $ 71,175 $ 455,128 $ 26,293 $ 633,087 Accumulated depreciation Beginning balance $ (3,607) $ (7,627) $ (29,194) $ (95,826) $ (2,553) $ (138,807) Period changes (581) (3,024) (12,887) (27,632) (2,720) (46,844) Disposals 27 1,929 5,939 — 877 8,772 Ending balance $ (4,161) $ (8,722) $ (36,142) $ (123,458) $ (4,396) $ (176,879) Net book value $ 44,094 $ 23,514 $ 35,033 $ 331,670 $ 21,897 $ 456,208 Year Ended December 31, 2022 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 41,684 $ 9,492 $ 45,562 $ 398,663 $ 16,039 $ 511,440 Additions (a) 9,421 20,886 22,399 34,835 7,704 95,245 Disposals (3,423) (9) (1,572) (14) — (5,018) Ending balance (b) $ 47,682 $ 30,369 $ 66,389 $ 433,484 $ 23,743 $ 601,667 Accumulated depreciation Beginning balance $ (2,078) $ (4,089) $ (20,186) $ (69,501) $ (1,606) $ (97,460) Period changes (1,819) (3,547) (10,270) (26,330) (947) (42,913) Disposals 290 9 1,262 5 — 1,566 Ending balance $ (3,607) $ (7,627) $ (29,194) $ (95,826) $ (2,553) $ (138,807) Net book value $ 44,075 $ 22,742 $ 37,195 $ 337,658 $ 21,190 $ 462,860 Year Ended December 31, 2021 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 28,190 $ 6,768 $ 35,129 $ 367,331 $ 5,600 $ 443,018 Additions (a) 13,494 2,737 12,700 31,485 10,439 70,855 Disposals — (13) (2,267) (153) — (2,433) Ending balance (b) $ 41,684 $ 9,492 $ 45,562 $ 398,663 $ 16,039 $ 511,440 Accumulated depreciation Beginning balance $ (1,007) $ (2,860) $ (12,409) $ (43,597) $ (1,042) $ (60,915) Period changes (1,071) (1,231) (9,259) (25,928) (564) (38,053) Disposals — 2 1,482 24 — 1,508 Ending balance $ (2,078) $ (4,089) $ (20,186) $ (69,501) $ (1,606) $ (97,460) Net book value $ 39,606 $ 5,403 $ 25,376 $ 329,162 $ 14,433 $ 413,980 (a) Of the $42,496 in 2023 additions, $234 was related to acquisitions and $13,279 was associated with right-of-use asset additions for new leases. Of the $95,245 in 2022 additions, $26,815 was related to acquisitions and $11,295 was associated with right-of-use asset additions for new leases. The remaining capital expenditures are a result of our recurring capital needs and enhanced sustainability efforts. Of the $70,855 in 2021 additions, $25,961 was related to acquisitions and $16,554 was associated with right-of-use asset additions for new and acquired leases. Refer to Notes 5 and 20 for additional information regarding acquisitions and leases, respectively. Remaining additions are related to routine capital projects on the Group’s compressor and gathering systems, vehicle and equipment additions. (b) Buildings and Leasehold Improvements and Motor Vehicles are inclusive of right-of-use assets associated with the Group’s leases. Refer to Note 20 for additional information regarding leases. The Group continued to utilize certain fully depreciated assets during the years ended December 31, 2023 , 2022 and 2021 with an original cost basis of $6,546 , $9,222 and $5,597 , respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets and goodwill [abstract] | |
INTANGIBLE ASSETS | NOTE 12 - INTANGIBLE ASSETS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) Intangible assets consisted of the following for the periods presented: Year Ended December 31, 2023 Software Other Acquired Intangibles Total Costs Beginning balance $ 39,306 $ 7,124 $ 46,430 Additions (a) 5,949 — 5,949 Disposals (806) (2,900) (3,706) Ending balance $ 44,449 $ 4,224 $ 48,673 Accumulated amortization Beginning balance $ (22,517) $ (2,815) $ (25,332) Period changes (6,789) (907) (7,696) Disposals 806 2,900 3,706 Ending balance $ (28,500) $ (822) $ (29,322) Net book value $ 15,949 $ 3,402 $ 19,351 Year Ended December 31, 2022 Software Other Acquired Intangibles Total Costs Beginning balance $ 28,095 $ 2,900 $ 30,995 Additions (a) 11,211 4,224 15,435 Ending balance $ 39,306 $ 7,124 $ 46,430 Accumulated amortization Beginning balance $ (15,192) $ (1,669) $ (16,861) Period changes (7,325) (1,146) (8,471) Ending balance $ (22,517) $ (2,815) $ (25,332) Net book value $ 16,789 $ 4,309 $ 21,098 Year Ended December 31, 2021 Software Other Acquired Intangibles Total Costs Beginning balance $ 24,271 $ 2,900 $ 27,171 Additions (a) 3,824 — 3,824 Ending balance $ 28,095 $ 2,900 $ 30,995 Accumulated amortization Beginning balance $ (7,246) $ (712) $ (7,958) Period changes (7,946) (957) (8,903) Ending balance $ (15,192) $ (1,669) $ (16,861) Net book value $ 12,903 $ 1,231 $ 14,134 (a) For the years ended December 31, 2023 , 2022 and 2021 additions were related to software enhancements and other acquired intangibles. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Financial Instruments [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 13 - DERIVATIVE FINANCIAL INSTRUMENTS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The Group is exposed to volatility in market prices and basis differentials for natural gas, NGLs and oil, which impacts the predictability of its cash flows related to the sale of those commodities. The Group can also have exposure to volatility in interest rate markets, depending on the makeup of its debt structure, which impacts the predictability of its cash flows related to interest payments on the Group’s variable rate debt obligations. These risks are managed by the Group’s use of certain derivative financial instruments. As of December 31, 2023 , the Group’s derivative financial instruments consisted of swaps, collars, basis swaps, stand-alone put and call options, and swaptions. A description of these instruments is as follows: Swaps: If the Group sells a swap, it receives a fixed price for the contract and pays a floating market price to the counterparty; Collars: Arrangements that contain a fixed floor price (purchased put option) and a fixed ceiling price (sold call option) based on an index price which, in aggregate, have no net costs. At the contract settlement date, (1) if the index price is higher than the ceiling price, the Group pays the counterparty the difference between the index price and ceiling price, (2) if the index price is between the floor and ceiling prices, no payments are due from either party, and (3) if the index price is below the floor price, the Group will receive the difference between the floor price and the index price. Certain collar arrangements may also include a sold put option with a strike price below the purchased put option. Referred to as a three-way collar, the structure works similar to the above description, except that when the index price settles below the sold put option, the Group pays the counterparty the difference between the index price and sold put option, effectively enhancing realized pricing by the difference between the price of the sold and purchased put option; Basis swaps: Arrangements that guarantee a price differential for commodities from a specified delivery point. If the Group sells a basis swap, it receives a payment from the counterparty if the price differential is greater than the stated terms of the contract and pays the counterparty if the price differential is less than the stated terms of the contract; Put options: The Group purchases and sells put options in exchange for a premium. If the Group purchases a put option, it receives from the counterparty the excess (if any) of the market price below the strike price of the put option at the time of settlement, but if the market price is above the put’s strike price, no payment is due from either party. If the Group sells a put option, the Group pays the counterparty the excess (if any) of the market price below the strike price of the put option at the time of settlement, but if the market price is above the put’s strike price, no payment is due from either party; Call options: The Group purchases and sells call options in exchange for a premium. If the Group purchases a call option, it receives from the counterparty the excess (if any) of the market price over the strike price of the call option at the time of settlement, but if the market price is below the call’s strike price, no payment is due from either party. If the Group sells a call option, it pays the counterparty the excess (if any) of the market price over the strike price of the call option at the time of settlement, but if the market price is below the call’s strike price, no payment is due from either party; and Swaptions: If the Group sells a swaption, the counterparty will receive the option to enter into a swap contract at a specified date and receives a fixed price for the contract and pays a floating market price to the counterparty. The Group may elect to enter into offsetting transactions for the above instruments for the purpose of cancelling or terminating certain positions. The following tables summarize the Group's calculated net fair value of derivative financial instruments as of the reporting date as follows: NATURAL GAS CONTRACTS Weighted Average Price per Mcfe (a) Volume Sold Purchased Sold Basis Fair Value at (Mmbtu) Swaps Puts Puts Calls Differential December 31, 2023 2024 Swaps 191,397 $ 3.30 $ — $ — $ — $ — $ 74,340 Collars 2,560 — — 4.03 6.25 — 3,278 Stand-Alone Calls, net (b) — — — — — — (36,415) Basis Swaps 163,595 — — — — (0.73) (1,306) Total 2024 contracts 357,552 39,897 2025 Swaps 164,672 $ 3.21 $ — $ — $ — $ — $ (76,697) Stand-Alone Calls, net (b) — — — — — — (33,060) Basis Swaps 25,550 — — — — (0.21) 372 Total 2025 contracts 190,222 (109,385) 2026 Swaps 120,559 $ 3.18 $ — $ — $ — $ — $ (95,779) Stand-Alone Calls 10,950 — — — 3.75 — (8,153) Basis Swaps 10,950 — — — — (0.21) (342) Total 2026 contracts 142,459 (104,274) 2027 Swaps 101,303 $ 3.21 $ — $ — $ — $ — $ (76,188) Collars 1,414 — — 4.28 7.17 — 601 Stand-Alone Calls 10,950 — — — 3.75 — (8,784) Purchased puts 4,906 — — 2.25 — — 498 Sold puts 4,906 — 1.93 — — — (275) 2028 Swaps 71,324 $ 2.79 $ — $ — $ — $ — $ (71,625) Collars 5,382 — — 4.28 6.90 — 2,616 Purchased puts 20,351 — — 2.77 — — 8,622 Sold puts 20,351 — 1.93 — — — (4,711) 2029 Swaps 29,190 $ 2.11 $ — $ — $ — $ — $ (40,451) Collars 3,726 — — 4.28 7.51 — 2,150 Purchased puts 30,066 — — 2.92 — — 10,782 Sold puts 30,066 — 1.93 — — — (3,257) 2030 Swaps 5,450 $ 2.03 $ — $ — $ — $ — $ (7,979) Purchased puts 14,492 — — 2.93 — — 5,362 Sold puts 14,492 — 1.93 — — — (1,735) Swaptions 10/1/2024-9/30/2028 (c) 14,610 $ 2.91 $ — $ — $ — $ — $ (12,749) 1/1/2025-12/31/2029 (d) 36,520 2.77 — — — — (36,684) 4/1/2026-3/31/2030 (e) 82,171 2.57 — — — — (97,901) 4/1/2030-3/31/2032 (f) 42,627 2.57 — — — — (47,143) Total 2027-2032 contracts 544,297 $ (378,851) Total natural gas contracts 1,234,530 $ (552,613) (a) Rates have been converted from Btu to Mcfe using a Btu conversion factor of 1.07 . (b) Future cash settlements for deferred premiums. (c) Option expires on September 6, 2024 . (d) Option expires on December 23, 2024 . (e) Option expires on March 23, 2026 . (f) Option expires on March 22, 2030 . NGLs CONTRACTS Weighted Average Price per Bbl Volume Sold Fair Value at (MBbls) Swaps Calls December 31, 2023 2024 Swaps 3,301 $ 37.74 $ — $ 9,804 Stand-Alone Calls 915 — 31.29 (2,400) 2025 Swaps 2,143 $ 30.22 $ — $ (1,411) 2026 Swaps 1,097 $ 27.68 $ — $ (1,261) Total NGLs contracts 7,456 $ 4,732 OIL CONTRACTS Weighted Average Price per Bbl Volume Sold Fair Value at (MBbls) Swaps Calls December 31, 2023 2024 Swaps 431 $ 62.54 $ — $ (3,521) Sold Calls 183 — 70.00 (1,188) 2025 Swaps 366 $ 59.01 $ — $ (3,057) 2026 Swaps 283 $ 59.48 $ — $ (1,451) 2027 Swaps 162 $ 58.60 $ — $ (677) Total oil contracts 1,425 $ (9,894) INTEREST Principal Hedged Fair Value at Fixed-Rate December 31, 2023 2023 SOFR Interest Rate Swap $ 5,520 4.15% 315 Net fair value of derivative financial instruments as of December 31, 2023 $ (557,460) Netting the fair values of derivative assets and liabilities for financial reporting purposes is permitted if such assets and liabilities are with the same counterparty and a legal right of set-off exists, subject to a master netting arrangement. The Directors have elected to present derivative assets and liabilities net when these conditions are met. The following table outlines the Group’s net derivatives as of the periods presented: Derivative Financial Instruments Consolidated Statement of Financial Position December 31, 2023 December 31, 2022 Assets: Non-current assets Derivative financial instruments $ 24,401 $ 13,936 Current assets Derivative financial instruments 87,659 27,739 Total assets $ 112,060 $ 41,675 Liabilities Non-current liabilities Derivative financial instruments $ (623,684) $ (1,177,801) Current liabilities Derivative financial instruments (45,836) (293,840) Total liabilities $ (669,520) $ (1,471,641) Net assets (liabilities): Net assets (liabilities) - non-current Other non-current assets (liabilities) $ (599,283) $ (1,163,865) Net assets (liabilities) - current Other current assets (liabilities) 41,823 (266,101) Total net assets (liabilities) $ (557,460) $ (1,429,966) The Group presents the fair value of derivative contracts on a net basis in the consolidated statement of financial position. The following presents the impact of this presentation on the Group’s recognized assets and liabilities as of the periods indicated: December 31, 2023 Presented without Effects of Netting Effects of Netting As Presented with Effects of Netting Non-current assets $ 103,008 $ (78,607) $ 24,401 Current assets 198,806 (111,147) 87,659 Total assets $ 301,814 $ (189,754) $ 112,060 Non-current liabilities (678,053) 54,369 (623,684) Current liabilities (181,221) 135,385 (45,836) Total liabilities $ (859,274) $ 189,754 $ (669,520) Total net assets (liabilities) $ (557,460) $ — $ (557,460) December 31, 2022 Presented without Effects of Netting Effects of Netting As Presented with Effects of Netting Non-current assets $ 101,275 $ (87,339) $ 13,936 Current assets 92,611 (64,872) 27,739 Total assets $ 193,886 $ (152,211) $ 41,675 Non-current liabilities (1,261,369) 83,568 (1,177,801) Current liabilities (362,483) 68,643 (293,840) Total liabilities $ (1,623,852) $ 152,211 $ (1,471,641) Total net assets (liabilities) $ (1,429,966) $ — $ (1,429,966) The Group recorded the following gain (loss) on derivative financial instruments in the Consolidated Statement of Comprehensive Income for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Net gain (loss) on commodity derivatives settlements (a) $ 178,064 $ (895,802) $ (320,656) Net gain (loss) on interest rate swaps (a) (2,722) (1,434) (530) Gain (loss) on foreign currency hedges (a) (521) — (1,227) Total gain (loss) on settled derivative instruments $ 174,821 $ (897,236) $ (322,413) Gain (loss) on fair value adjustments of unsettled financial instruments (b) 905,695 (861,457) (652,465) Total gain (loss) on derivative financial instruments $ 1,080,516 $ (1,758,693) $ (974,878) (a) Represents the cash settlement of hedges that settled during the period. (b) Represents the change in fair value of financial instruments net of removing the carrying value of hedges that settled during the period. All derivatives are defined as Level 2 instruments as they are valued using inputs and outputs other than quoted prices that are observable for the assets and liabilities. Commodity Derivative Contract Modifications and Extinguishments From time to time, such as when acquiring producing assets, completing ABS financings or navigating changing price environments, the Group will opportunistically modify, offset, extinguish or add to certain existing hedge positions. Modifications include the volume of production subject to contracts, the swap or strike price of certain derivative contracts and similar elements of the derivative contract. The Group maintains distinct, long-dated derivative contract portfolios for its ABS financings and Term Loan I. The Group also maintains a separate derivative contract portfolio related to its assets collateralized by the Credit Facility . The derivative contract portfolios for the Group’s ABS financings, Term Loan 1 and Credit Facility are reflected in the Group’s Statement of Financial Position. 2023 Modifications and Extinguishments In February 2023, the Group sold puts in ABS III for approximately $9,045 and replaced them with swaps to maintain the appropriate level and composition of derivatives at both the legal entity and full-company level. In August 2023, the Group monetized $9,240 in purchased puts associated with its ABS hedge books and transitioned the monetized positions into long- dated swap agreements. The Group also monetized an additional $8,401 in net modifications, primarily comprised of swap terminations. As these modifications were made in the normal course of business for the year ended December 31, 2023, they are presented as an operating activity in the Consolidated Statement of Cash Flows. In November 2023, the Group adjusted portions of its commodity derivative portfolio across its legal entities to ensure that it maintained the appropriate level and composition at both the legal entity and full-Group level for the completion of the ABS VII financing arrangement. These portfolio adjustments included novations of certain contracts to the legal entities holding the ABS VII Notes. The Group paid $6,376 for these portfolio adjustments. As these modifications were associated with a borrowing transaction, these amounts are presented as a financing activity in the Consolidated Statement of Cash Flows. Refer to Note 21 for additional information regarding ABS financing arrangements. 2022 Modifications and Extinguishments In February 2022, the Group adjusted portions of its commodity derivative portfolio across its legal entities to ensure that it maintained the appropriate level and composition at both the legal entity and full-Group level for the completion of the ABS III and ABS IV financing arrangements. The Group completed these adjustments by entering into new commodity derivative contracts and novating certain derivative contracts to the legal entities holding the ABS III and ABS IV notes. The Group paid $41,823 for these portfolio adjustments, driven primarily by the purchase of long-dated puts for ABS III and ABS IV that collectively increased the value of the Group’s derivative position by an equal amount, and were required under the respective ABS III and ABS IV indentures. The Group recorded payments for offsetting positions as new derivative financial instruments and applied extinguishment payments against the existing commodity contracts in its Consolidated Statement of Financial Position. In May 2022 , and in October 2022 the Group completed the ABS V and ABS VI financing arrangements, respectively, and made similar commodity derivative portfolio adjustments to maintain the appropriate level and composition of derivatives at both the legal entity and full-Group level. The Group paid $31,250 , driven primarily by the purchase of long-dated puts that increased the value of the Group’s derivative position by an equal amount, and were required under the ABS V indenture. Under the ABS VI financing, the Group paid $32,242 from the proceeds of the financing to increase the value of certain pre- existing derivative contracts that were novated to the ABS VI legal entity at closing. The Group recorded the payments as new derivative financial instruments in its Consolidated Statement of Financial Position. Refer to Note 21 for additional information regarding ABS financing arrangements. Other commodity derivative contract modifications made during the normal course of business for the year ended December 31, 2022 totaled $133,573 which the Group recorded in its Consolidated Statement of Financial Position. As these modifications were made in the normal course, the Group has presented these as an operating activity in the Consolidated Statement of Cash Flows. These modifications were primarily associated with elevating the Group’s weighted average hedge floor to take advantage of the high price environment experienced in 2022 over a longer term. The trades were primarily comprised of swap enhancements and the extinguishment of standalone call options. 2021 Modifications and Extinguishments In August 2021 as part of the Tanos acquisition, the Group obtained the option to novate or extinguish the Tanos hedge book. In conjunction with the closing settlement, DEC elected to extinguish their share of the Tanos hedge book. The cost to terminate was $52,666 . This payment relieved the termination liability established on the Group’s Consolidated Statement of Financial Position in purchase accounting and has been presented as an investing activity in the Consolidated Statement of Cash Flows given its connection to the Tanos acquisition. New derivative contracts were subsequently entered into for more favorable pricing in order to secure the cash flows associated with these producing assets in an elevated price environment. In May 2021, subsequent to the close of the Indigo acquisition, market dynamics began shifting to a more favorable commodity price environment. Given the favorable forward curve, the Group elected to early terminate certain legacy Indigo derivative positions resulting in a cash payment of $6,797 which the Group recorded in its Consolidated Statement of Financial Position. Since this extinguishment occurred subsequent to the acquisition date the Group has presented this payment as an operating activity in the Consolidated Statement of Cash Flows. New derivative contracts were subsequently entered into for more favorable pricing in order to secure the cash flows associated with these producing assets in an elevated price environment. Refer to Note 5 for additional information regarding acquisitions. Other commodity derivative contract modifications made during the normal course of business for the year ended December 31, 2021 totaled $3,367 which the Group recorded in its Consolidated Statement of Financial Position. As these modifications were made in the normal course of business, the Group has presented these as an operating activity in the Consolidated Statement of Cash Flows. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets1 [Abstract] | |
OTHER ASSETS | NOTE 15 - OTHER ASSETS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The following table includes details of other assets as of the periods presented: December 31, 2023 December 31, 2022 Other non-current assets Other non-current assets (a) $ 9,172 $ 4,351 Total other non-current assets $ 9,172 $ 4,351 Other current assets Prepaid expenses $ 3,955 $ 5,255 Inventory 7,829 9,227 Total other current assets $ 11,784 $ 14,482 (a) Includes the Group’s investment in DP Lion Equity Holdco LLC of $7,500 as of December 31, 2023 . Refer to Notes 5 and 21 for additional information regarding the DP Lion Equity Holdco LLC equity sale. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2023 | |
Share Capital, Reserves, And Other Equity Interest [Abstract] | |
SHARE CAPITAL | NOTE 16 - SHARE CAPITAL (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The Company has one class of common shares which carry the right to one vote at annual general meetings of the Group. As of December 31, 2023 , the Group had no limit on the amount of authorized share capital and all shares in issue were fully paid. Effective December 5, 2023, the Company executed a 20-for-1 consolidation of its outstanding shares. The Company’s issued share capital has been retrospectively adjusted for all reporting periods. Share capital represents the nominal (par) value of shares (£0.20) that have been issued. Share premium includes any premiums received on issue of share capital above par. Any transaction costs associated with the issuance of shares are deducted from share premium, net of any related income tax benefits. The components of share capital include: Issuance of Share Capital In February 2023 , the Group placed 6,422 new shares at $25.34 per share ( £21.00 ) to raise gross proceeds of $162,757 (approximately £134,866 ). Associated costs of the placing were $5,969 . The Group used the proceeds to fund the Tanos II transaction, discussed in Note 5 . In 2022, there were no issuances of share capital for purposes other than share-based compensation awards issued at par which were insignificant for the period. In May 2021, the Group placed 7,077 new shares at $31.80 per share ( £22.40 ) to raise gross proceeds of $225,050 (approximately £158,526 ). Associated costs of the placing were $11,206 . The Group used the proceeds to pay down the Credit Facility and partially fund the Indigo and Blackbeard acquisitions, discussed in Notes 21 and 5 , respectively. Treasury Shares The Group’s holdings in its own equity instruments are classified as treasury shares. The consideration paid, including any directly attributable incremental costs, is deducted from the stockholders’ equity of the Group until the shares are cancelled or reissued. No gain or loss is recognized in the income statement on the purchase, sale, issue or cancellation of treasury shares. EMPLOYEE BENEFIT TRUST (“EBT”) In March 2022 , the Group established the EBT for the benefit of the employees of the Group. The Group funds the EBT to facilitate the acquisition of shares. The shares in the EBT are held to satisfy awards and grants under the Group’s 2017 Equity Incentive Plan and the Employee Share Purchase Plan (the “ESPP”). Shares held in the EBT are accounted for in the same manner as treasury shares and are therefore included in the Consolidated Financial Statement as treasury shares. During the year ended December 31, 2023 , the EBT issued 334 shares to settle vested share-based awards and ESPP purchases. No shares were purchased by the EBT during the year ended December 31, 2023 . During the year ended December 31, 2022 , the EBT purchased 790 shares at an average price per share of $29.04 (approximately £24.56 ) for a total consideration of $22,931 (approximately £19,388 ). During the year ended December 31, 2022 , the EBT issued 88 to settle vested share-based awards. As of December 31, 2023 , the EBT held 367 shares. Refer to Note 17 for additional information related to share-based compensation. REPURCHASE OF SHARES During the year ended December 31, 2023 , the Group repurchased 647 treasury shares at an average price of $17.08 totaling $11,048 , representing 1% of issued share capital as of December 31, 2023 . During the year ended December 31, 2022 , the Group repurchased 400 treasury shares at an average price of $29.42 totaling $11,760 , representing 1% of issued share capital as of December 31, 2022 . The Group has accounted for the repurchase of these shares as a reduction to the treasury reserve. All repurchased treasury shares were cancelled upon repurchase and as of December 31, 2023 and 2022 , their par value of $161 and $80 , respectively, was retired into the capital redemption reserve included within share based payments and other reserves in the Consolidated Statement of Financial Position. SETTLEMENT OF WARRANTS In July 2022 , the Group entered into an agreement to cancel 7 warrants (the "Warrants") held by certain former Mirabaud Securities Limited ("Mirabaud") employees for an aggregate principal amount of approximately $56 (approximately £46 ). The former employees surrendered the Warrants to the Group for cancellation. Concurrently, the Group entered into an agreement to exercise 11 Warrants held by certain former Mirabaud employees for an aggregate principal amount of approximately $201 (approximately £166 ). The former employees surrendered the Warrants to the Group for cancellation in exchange for an equivalent number of shares of common stock. Following this purchase and exercise, no warrants remain outstanding. In February 2022 , the Group entered into an agreement to cancel 24 Warrants held by certain former Mirabaud Securities Limited ("Mirabaud") employees for an aggregate principal amount of approximately $265 (approximately £196 ). The former employees surrendered the Warrants to the Group for cancellation. Concurrently, the Group entered into an agreement to exercise 15 Warrants held by certain former Mirabaud employees for an aggregate principal amount of approximately $251 (approximately £187 ). The former employees surrendered the Warrants to the Group for cancellation in exchange for an equivalent number of shares of common stock. Following this purchase and exercise, 18 warrants remained outstanding. In January 2021 , the Group entered into an agreement to cancel 119 Warrants held by Mirabaud and certain former Mirabaud employees for an aggregate principal amount of approximately $1,429 (approximately £1,040 ). Mirabaud and its former employees surrendered the Warrants to the Group for cancellation. Following this purchase, 57 warrants remained outstanding. The following tables summarize the Group's share capital, net of customary transaction costs, for the periods presented: Number of Shares Total Share Capital Total Share Premium Balance as of December 31, 2020 35,369 $ 9,520 $ 841,159 Issuance of share capital (equity placement) 7,077 2,044 211,800 Issuance of share capital (equity compensation) 37 7 — Balance as of December 31, 2021 42,483 $ 11,571 $ 1,052,959 Issuance of share capital (settlement of warrants) 26 5 — Issuance of share capital (equity compensation) 40 7 — Issuance of EBT shares (equity compensation) 88 — — Repurchase of shares (EBT) (790) — — Repurchase of shares (share buyback program) (400) (80) — Balance as of December 31, 2022 41,447 $ 11,503 $ 1,052,959 Issuance of share capital (equity placement) 6,422 1,555 155,233 Issuance of EBT shares (equity compensation) 334 — — Repurchase of shares (share buyback program) (647) (161) — Balance as of December 31, 2023 47,556 12,897 1,208,192 |
NON-CASH SHARE-BASED COMPENSATI
NON-CASH SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Arrangements [Abstract] | |
NON-CASH SHARE-BASED COMPENSATION | NOTE 17 - NON-CASH SHARE-BASED COMPENSATION (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) Equity Incentive Plan The 2017 Equity Incentive Plan (the “Plan”), as amended through April 27, 2021, authorized and reserved for issuance 3,284 shares of common stock, which may be issued upon exercise of vested Options or the vesting of RSUs, PSUs and dividend equivalent units (“DEUs”) that are granted under the Plan. As of December 31, 2023 , 1,648 shares have vested and been issued to Plan participants, 1,141 shares have been granted but remain unvested and 238 DEUs have accrued and remain unvested. As of December 31, 2022 , 595 shares had vested and been issued to Plan participants, 1,283 shares had been granted but remained unvested and 212 DEUs had accrued and remained unvested. Refer to the Remuneration Committee’s Report within this Annual Report & Form 20-F for additional information regarding the terms of awards issued under the Plan. Effective December 5, 2023, the Company executed a 20-for-1 consolidation of its outstanding shares. The Group’s share- based payment awards have been retroactively adjusted for all reporting periods. Options Awards The following table summarizes Options award activity for the respective periods presented: Number of Options (a) Weighted Average Grant Date Fair Value per Share Balance as of December 31, 2020 1,151 $ 8.50 Granted — — Exercised (b) (41) 6.60 Forfeited (15) 11.80 Balance as of December 31, 2021 1,095 $ 8.53 Granted — — Exercised (b) (399) 6.60 Forfeited (320) 11.30 Balance as of December 31, 2022 376 $ 8.21 Granted — — Exercised (b) (2) 6.60 Forfeited (153) 8.25 Balance as of December 31, 2023 221 $ 8.20 (a) As of December 31, 2023 , 2022 and 2021 , 162 , 19 and 202 Options were exercisable, respectively. As of December 31, 2023 all remaining Options outstanding have an exercise price ranging from £16.80 to £24.00 and a weighted average remaining contractual life of 4.6 years . (b) The weighted average exercise date share price was $24.29 , $32.35 and $34.80 for Options exercised during 2023 , 2022 and 2021 , respectively. The Group’s Options ratably vest over a three -year period and contain both performance and service metrics. The performance metrics include Adjusted EPS as compared to pre-established benchmarks and a calculation that compares the Group’s TSR to pre-established benchmarks. The number of units that will vest can range between 0% and 100% of the award. The fair value of the Group’s Options was calculated using the Black-Scholes model as of the grant date and is uniformly expensed over the vesting period. No Options were awarded during the years ended December 31, 2023 , 2022 and 2021 . RSU Awards The following table summarizes RSU equity award activity for the respective periods presented: Number of Shares Weighted Average Grant Date Fair Value per Share Balance as of December 31, 2020 172 $ 23.76 Granted 77 31.72 Vested (38) 23.27 Forfeited (4) 26.38 Balance as of December 31, 2021 207 $ 26.76 Granted 199 27.70 Vested (64) 25.92 Forfeited (4) 27.24 Balance as of December 31, 2022 338 $ 27.47 Granted 253 22.35 Vested (181) 23.08 Forfeited (102) 27.54 Balance as of December 31, 2023 308 $ 25.82 RSUs cliff- or ratably-vest based on service conditions. The fair value of the Group’s RSUs is determined using the stock price at the grant date and uniformly expensed over the vesting period. PSU Awards The following table summarizes PSU equity award activity for the respective periods presented: Number of Shares Weighted Average Grant Date Fair Value per Share Balance as of December 31, 2020 221 $ 25.15 Granted 124 21.64 Vested — — Forfeited (4) 23.06 Balance as of December 31, 2021 341 $ 23.90 Granted 232 28.04 Vested — — Forfeited (4) 26.07 Balance as of December 31, 2022 569 $ 25.57 Granted 349 16.66 Vested (216) 23.85 Forfeited (90) 20.30 Balance as of December 31, 2023 612 $ 21.87 PSUs cliff-vest based on performance criteria which include a three-year average adjusted return on equity as compared to pre-established benchmarks, a calculation that compares the Group’s TSR to pre-established benchmarks as well as the same calculated return for a group of peer companies as selected by the Group, and methane intensity reduction over three years. The number of units that will vest can range between 0% and 100% of the award. The fair value of the Group’s PSUs is calculated using a Monte Carlo simulation model as of the grant date and is uniformly expensed over the vesting period. The inputs to the Monte Carlo model included the following for PSUs granted during the respective periods presented: December 31, 2023 December 31, 2022 December 31, 2021 Risk-free rate of interest 3.3% 1.3% 0.2% Volatility (a) 31% 37% 35% Correlation with comparator group range 0.01 - 0.30 0.01 - 0.36 0.02 - 0.36 (a) Volatility utilizes the historical volatility for the Group’s share price. Employee Stock Purchase Plan The Employee Stock Purchase Plan (the “ESPP”), implemented in February 2023, authorized and reserved for issuance 300 shares of common stock. As of December 31, 2023 , 15 shares have been purchased by and issued to ESPP participants, and 285 shares remain available to be purchased. Share-Based Compensation Expense The following table presents the share-based compensation expense for the respective periods presented: December 31, 2023 December 31, 2022 December 31, 2021 Options $ 292 $ (749) $ 2,115 RSUs 2,833 4,210 2,346 PSUs 3,335 4,590 2,939 ESPP 34 — — Total share-based compensation expense $ 6,494 $ 8,051 $ 7,400 |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2023 | |
Dividends1 [Abstract] | |
DIVIDENDS | NOTE 18 - DIVIDENDS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) Effective December 5, 2023, the Company executed a 20-for-1 consolidation of its outstanding shares. Prices per share and shares outstanding have been retroactively adjusted for all reporting periods. The following table summarizes the Group's dividends declared and paid on the dates indicated: Dividend per Share Record Date Pay Date Shares Outstanding Gross Dividends Paid Date Dividends Declared USD GBP November 14, 2022 $ 0.8750 £ 0.7220 March 3, 2023 March 28, 2023 47,869 $ 41,885 March 21, 2023 $ 0.8750 £ 0.6860 May 26, 2023 June 30, 2023 48,165 42,144 May 9, 2023 $ 0.8750 £ 0.7040 September 1, 2023 September 29, 2023 48,157 42,137 September 1, 2023 $ 0.8750 £ 0.6840 December 1, 2023 December 29, 2023 47,857 41,875 Paid during the year ended December 31, 2023 $ 168,041 October 28, 2021 $ 0.8500 £ 0.6500 March 4, 2022 March 28, 2022 42,502 $ 36,127 March 22, 2022 $ 0.8500 £ 0.6860 May 27, 2022 June 30, 2022 42,527 36,148 May 16, 2022 $ 0.8500 £ 0.7320 September 2, 2022 September 26, 2022 42,294 35,950 August 8, 2022 $ 0.8500 £ 0.6900 November 25, 2022 December 28, 2022 41,447 35,230 Paid during the year ended December 31, 2022 $ 143,455 October 29, 2020 $ 0.8000 £ 0.5700 March 5, 2021 March 26, 2021 35,376 $ 28,301 March 8, 2021 $ 0.8000 £ 0.5620 May 28, 2021 June 24, 2021 42,472 33,970 April 30, 2021 $ 0.8000 £ 0.5760 September 3, 2021 September 24, 2021 42,480 33,984 August 5, 2021 $ 0.8000 £ 0.5980 November 26, 2021 December 17, 2021 42,480 33,984 Paid during the year ended December 31, 2021 $ 130,239 On November 15, 2023 the Group proposed a dividend of $0.8750 per share. The dividend will be paid on March 28, 2024 to shareholders on the register on March 1, 2024 . This dividend was not approved by shareholders, thereby qualifying it as an “interim” dividend. No liability was recorded in the Group Financial Statements in respect of this interim dividend as of December 31, 2023 . Dividends are waived on shares held in the EBT. Subsequent Events On March 19, 2024 the Directors recommended a dividend of $0.29 per share. The dividend will be subject to shareholder approval at the AGM. Provided this dividend was not approved by shareholders as of the reporting date, this represents an “interim” dividend. No liability has been recorded in the Group Financial Statements in respect of this dividend as of December 31, 2023 . |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2023 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | |
ASSET RETIREMENT OBLIGATIONS | NOTE 19 - ASSET RETIREMENT OBLIGATIONS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The Group records a liability for the present value of the estimated future decommissioning costs on its natural gas and oil properties, Although productive life varies within our well portfolio, presently we expect all of our existing wells to have reached the end of their productive lives and be retired by approximately 2095 , consistent with our reserve calculations which were independently evaluated by third-party engineers. The Group also records a liability for the future cost of decommissioning its production facilities and pipelines when required by contract, statute, or constructive obligation. No state contractual agreements or statutes for production facilities and pipelines would impose material obligations on the Group for the years ended December 31, 2023 , 2022 and 2021 . In estimating the present value of future decommissioning costs of natural gas and oil properties the Group takes into account the number and state jurisdictions of wells, current costs to decommission by state and well type, and the Group’s retirement plan which is based on state requirements and the Group’s retirement capacity over the producing lives of the Group’s well portfolio. The Directors ’ assumptions are based on the current economic environment and represent what the Directors believe is a reasonable basis upon which to estimate the future liability. However, actual decommissioning costs will ultimately depend upon future market prices at the time the decommissioning services are performed. Furthermore, the timing of decommissioning will vary depending on when the fields cease to produce economically, making the determination dependent upon future natural gas and oil prices, which are inherently uncertain. The Group applies a contingency allowance for annual inflationary cost increases to its current cost expectations then discounts the resulting cash flows using a credit adjusted risk free discount rate. The inflationary adjustment is a U.S. long-term 10-year rate sourced from consensus economics. When determining the discount rate of the liability, the Group evaluates treasury rates as well as the Bloomberg 15-year U.S. Energy BB and BBB bond index which economically aligns with the underlying long-term and unsecured liability. Based on this evaluation the net discount rate used in the calculation of the decommissioning liability in 2023 , 2022 and 2021 was 3.4% , 3.6% and 2.9% , respectively. The composition of the provision for asset retirement obligations at the reporting date was as follows for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Balance at beginning of period $ 457,083 $ 525,589 $ 346,124 Additions (a) 3,250 24,395 96,292 Accretion 26,926 27,569 24,396 Asset retirement costs (5,961) (4,889) (2,879) Disposals (b) (17,300) (16,779) (16,500) Revisions to estimate (c) 42,650 (98,802) 78,156 Balance at end of period $ 506,648 $ 457,083 $ 525,589 Less: Current asset retirement obligations 5,402 4,529 3,399 Non-current asset retirement obligations $ 501,246 $ 452,554 $ 522,190 (a) Refer to Note 5 for additional information regarding acquisitions and divestitures. (b) Associated with the divestiture of natural gas and oil properties. Refer to Note 10 for additional information. (c) As of December 31, 2023 , we performed normal revisions to our asset retirement obligations, which resulted in a $42,650 increase in the liability. This increase was comprised of a $27,830 increase attributable to a lower discount rate as a result of slightly decreased bond yields as compared to 2022 as inflation began to increase at a lower rate and a $16,059 increase for cost revisions based on our recent asset retirement experiences. Partially offsetting this increase was a $1,239 change attributed to retirement timing. As of December 31, 2022 , the Group performed normal revisions to its asset retirement obligations, which resulted in a $98,802 decrease in the liability. This decrease was comprised of a $144,656 decrease attributable to a higher discount rate. The higher discount rate was a result of macroeconomic factors spurred by the increase in bond yields which have elevated with U.S. treasuries to combat the current inflationary environment. Partially offsetting this decrease was $29,357 in cost revisions based on the Group’s recent asset retirement experiences and a $16,497 timing revision for the acceleration of the Group’s retirement plans made possible by asset retirement acquisitions that improved the Group’s asset retirement capacity through the growth of its operational capabilities. As of December 31, 2021 , the Group performed normal revisions to its asset retirement obligations, which resulted in a $78,156 increase in the liability. This increase was comprised of a $109,306 increase attributable to the lower discount rate which was then offset by a $27,038 decrease for cost revisions based on our recent asset retirement experiences. The remaining change was attributable to timing. The lower discount rate was a result of macroeconomic factors spurred by the COVID-19 recovery, which reduced bond yields and increased inflation. Cost reductions are a result of our recent asset retirement experiences. Changes to assumptions for the estimation of the Group’s asset retirement obligations could result in a material change in the carrying value of the liability. A reasonably possible change in assumptions could have the following impact on the Group’s asset retirement obligations as of December 31, 2023 : ARO Sensitivity Scenario 1 (a) Scenario 2 (b) Discount rate $ (164,357) $ 817,004 Timing 31,339 (34,235) Cost 50,580 (50,580) (a) Scenario 1 assumes an increase of the BBB 15 year discount rate to approximately 7% (which is one of the highest rates observed since 2020), a 10% increase in cost and a 10% increase in timing by assuming the addition of one plugging rig, which would accelerate retirement plans. All of these scenarios have been either historically observed or are considered reasonably possible. (b) Scenario 2 assumes a decrease of the BBB 15 year discount rate to approximately 3% (which is one of the lowest rates observed since 2020), a 10% decrease in cost and a 10% decrease in timing by assuming the loss of one plugging rig, which would delay retirement plans. All of these scenarios have been either historically observed or are considered reasonably possible. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases1 [Abstract] | |
LEASES | NOTE 20 - LEASES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The Group leased automobiles, equipment and real estate for the periods presented below. A reconciliation of leases arising from financing activities and the balance sheet classification of future minimum lease payments as of the reporting periods presented were as follows: Present Value of Minimum Lease Payments December 31, 2023 December 31, 2022 December 31, 2021 Balance at beginning of period $ 28,862 $ 27,804 $ 18,878 Additions (a) 14,430 11,269 16,482 Interest expense (b) 1,661 1,022 1,050 Cash outflows (13,831) (11,233) (8,606) Balance at end of period $ 31,122 $ 28,862 $ 27,804 Classified as: Current liability $ 10,563 $ 9,293 $ 9,627 Non-current liability 20,559 19,569 18,177 Total $ 31,122 $ 28,862 $ 27,804 (a) The $14,430 and $11,269 in lease additions during the year s ended December 31, 2023 and December 31, 2022 , respectively, was primarily attributable to the expansion of the Group’s fleet due to continued growth. Of the $16,482 in lease additions during the year ended December 31, 2021 , $8,062 was attributable to the Indigo, Blackbeard and Tapstone acquisitions. Refer to Note 5 for additional information regarding acquisitions. (b) Included as a component of finance cost. Set out below is the movement in the right-of-use assets: Right-of-Use Assets December 31, 2023 December 31, 2022 December 31, 2021 Balance at beginning of period $ 27,959 $ 26,908 $ 18,026 Additions (a) 13,279 11,295 16,554 Depreciation (11,224) (10,244) (7,672) Balance at end of period $ 30,014 $ 27,959 $ 26,908 Classified as: Motor vehicles $ 25,592 $ 23,782 $ 19,149 Midstream 3,136 3,801 6,502 Buildings and leasehold improvements 1,286 376 1,257 Total $ 30,014 $ 27,959 $ 26,908 (a) The $13,279 and $11,295 in lease additions during the year s ended December 31, 2023 and December 31, 2022 , respectively, was attributable to the expansion of the Group’s fleet due to continued growth. Of the $16,554 in lease additions during the year ended December 31, 2021 , $8,062 was attributable to the Indigo, Blackbeard and Tapstone acquisitions. Refer to Note 5 for additional information regarding acquisitions. The range of discount rates applied in calculating right-of-use assets and related lease liabilities, depending on the lease term, is presented below: December 31, 2023 December 31, 2022 December 31, 2021 Discount rates range 1.8% - 7.1% 1.8% - 6.3% 1.8% - 3.3% Expenses related to short-term and low-value lease exemptions applied under IFRS 16 are primarily associated with short term compressor rentals and were $30,024 , $25,153 and $15,362 for the years ended December 31, 2023 and 2022 and 2021 , respectively. These amounts have been included in the Group’s operating expenses and are primarily concentrated in LOE. The following table reflects the maturity of leases as of the periods presented: December 31, 2023 December 31, 2022 December 31, 2021 Not Later Than One Year $ 10,563 $ 9,293 $ 9,627 Later Than One Year and Not Later Than Five Years 20,559 19,569 18,177 Later Than Five Years — — — Total $ 31,122 $ 28,862 $ 27,804 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about borrowings [abstract] | |
Borrowings | NOTE 21 - BORROWINGS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The Group’s borrowings consist of the following amounts as of the reporting date: December 31, 2023 December 31, 2022 Credit Facility (Interest rate of 8.66% and 7.42% , respectively) (a) $ 159,000 $ 56,000 ABS I Notes (Interest rate of 5.00% ) 100,898 125,864 ABS II Notes (Interest rate of 5.25% ) 125,922 147,458 ABS III Notes (Interest rate of 4.875% ) 274,710 319,856 ABS IV Notes (Interest rate of 4.95% ) 99,951 130,144 ABS V Notes (Interest rate of 5.78% ) 290,913 378,796 ABS VI Notes (Interest rate of 7.50% ) 159,357 212,446 Term Loan I (Interest rate of 6.50% ) 106,470 120,518 Miscellaneous, primarily for real estate, vehicles and equipment 7,627 7,084 Total borrowings $ 1,324,848 $ 1,498,166 Less: Current portion of long-term debt (200,822) (271,096) Less: Deferred financing costs (41,123) (48,256) Less: Original issue discounts (7,098) (9,581) Total non-current borrowings, net $ 1,075,805 $ 1,169,233 (a) Represents the variable interest rate as of period end. Credit Facility The Group maintains a revolving loan facility (the “Credit Facility”) with a lending syndicate, the borrowing base for which is redetermined on a semi-annual, or as needed, basis. The Group’s wholly-owned subsidiary, DP RBL Co LLC, is the borrower under the Credit Facility. The borrowing base is primarily a function of the value of the natural gas and oil properties that collateralize the lending arrangement and will fluctuate with changes in collateral, which may occur as a result of acquisitions or through the establishment of ABS, term loan or other lending structures that result in changes to the collateral base. In August 2022 , the Group amended and restated the credit agreement governing its Credit Facility. The amendment enhanced the alignment with the Group’s stated ESG initiatives by including sustainability performance targets (“SPTs”) similar to those included in the ABS III, IV, V and VI notes, extended the maturity of the Credit Facility to August 2026 . In September 2023 , the Group performed its semi-annual redetermination and the borrowing base was resized to $435,000 . In November 2023 , the borrowing base was resized to $305,000 to reflect the movement of collateral for the issuance of the ABS VII Notes. Refer to Note 5 for additional information regarding the ABS VII transaction. The Credit Facility has an interest rate of SOFR plus an additional spread that ranges from 2.75% to 3.75% based on utilization. Interest payments on the Credit Facility are paid on a monthly basis. Available borrowings under the Credit Facility were $134,817 as of December 31, 2023 which includes the impact of $11,183 in letters of credit issued to certain vendors. The Credit Facility contains certain customary representations and warranties and affirmative and negative covenants, including covenants relating to: maintenance of books and records; financial reporting and notification; compliance with laws; maintenance of properties and insurance; and limitations on incurrence of indebtedness, liens, fundamental changes, international operations, asset sales, making certain debt payments and amendments, restrictive agreements, investments, restricted payments and hedging. The restricted payment provision governs the Group’s ability to make discretionary payments such as dividends, share repurchases, or other discretionary payments. DP RBL Co LLC must comply with the following restricted payments test in order to make discretionary payments (i) leverage is less than 1.5 x and borrowing base availability is > 25% (ii) leverage is between 1.5 x and 2.0 x, free cash flow must be positive and borrowing base availability must be > 15% (iii) leverage is between 2.0 x and 2.5 x, free cash flow must be positive and borrowing base availability must be > 20% (iv) when leverage exceeds 2.5 x for DP RBL Co LLC, restricted payments are prohibited. Additional covenants require DP RBL Co LLC to maintain a ratio of total debt to EBITDAX of not more than 3.25 to 1.00 and a ratio of current assets (with certain adjustments) to current liabilities of not less than 1.00 to 1.00 as of the last day of each fiscal quarter. The fair value of the Credit Facility approximates the carrying value as of December 31, 2023 . Term Loan I In May 2020 , the Group acquired DP Bluegrass LLC (“Bluegrass”), a limited-purpose, bankruptcy-remote, wholly owned subsidiary, to enter into a securitized financing agreement for $160,000 , which was structured as a secured term loan. The Group issued the Term Loan I at a 1% discount and used the proceeds of $158,400 to fund the 2020 Carbon and EQT acquisitions. The Term Loan I is secured by certain producing assets acquired in connection with the Carbon and EQT acquisitions. The Term Loan I accrues interest at a stated 6.50% annual rate and has a maturity date of May 2030 . Interest and principal payments on the Term Loan I are payable on a monthly basis. During the years ended December 31, 2023 , 2022 and 2021 , the Group incurred $7,573 , $8,643 and $9,860 in interest related to the Term Loan I, respectively. The fair value of the Term Loan I is approximately $101,706 as of December 31, 2023 . ABS I Note In November 2019 , the Group formed Diversified ABS LLC (“ABS I”), a limited-purpose, bankruptcy-remote, wholly-owned subsidiary, to issue BBB- rated asset-backed securities for an aggregate principal amount of $200,000 at par. The ABS I Notes are secured by certain of the Group’s upstream producing Appalachian assets. Natural gas production associated with these assets was hedged at 85% at the close of the agreement with long-term derivative contracts. Interest and principal payments on the ABS I Notes are payable on a monthly basis. During the years ended December 31, 2023 , 2022 and 2021 , the Group incurred $5,660 , $7,110 and $8,460 of interest related to the ABS I Notes, respectively. The legal final maturity date is January 2037 with an amortizing maturity of December 2029 . The ABS I Notes accrue interest at a stated 5% rate per annum. The fair value of the ABS I Notes is approximately $94,517 as of December 31, 2023 . In the event that ABS I has cash flow in excess of the required payments, ABS I is required to pay between 50% to 100% of the excess cash flow, contingent on certain performance metrics, as additional principal, with the remaining excess cash flow, if any, remaining with the Group. In particular, (a) with respect to any payment date prior to March 1, 2030, (i) if the debt service coverage ratio (the “DSCR”) as of such payment date is greater than or equal to 1.25 to 1.00, then 25% , (ii) if the DSCR as of such payment date is less than 1.25 to 1.00 but greater than or equal to 1.15 to 1.00, then 50% , and (iii) if the DSCR as of such payment date is less than 1.15 to 1.00, the production tracking rate for ABS I is less than 80% , or the loan to value ratio is greater than 85% , then 100% , and (b) with respect to any payment date on or after March 1, 2030, 100% . During the year ended December 31, 2023 , the Group paid $7,892 in excess cash flow payments on the ABS I Notes. ABS II Note In April 2020 , the Group formed Diversified ABS Phase II LLC (“ABS II”), a limited-purpose, bankruptcy-remote, wholly owned subsidiary, to issue BBB- rated asset-backed securities for an aggregate principal amount of $200,000 . The ABS II Notes were issued at a 2.775% discount. The Group used the proceeds of $183,617 , net of discount, capital reserve requirement, and debt issuance costs, to pay down its Credit Facility. The ABS II Notes are secured by certain of the Group’s upstream producing Appalachian assets. Natural gas production associated with these assets was hedged at 85% at the close of the agreement with long-term derivative contracts. The ABS II Notes accrue interest at a stated 5.25% rate per annum and have a maturity date of July 2037 with an amortizing maturity of September 2028 . Interest and principal payments on the ABS II Notes are payable on a monthly basis. During the years ended December 31, 2023 , 2022 and 2021 , the Group incurred $8,040 , $9,286 and $10,530 in interest related to the ABS II Notes, respectively. The fair value of the ABS II Notes is approximately $119,519 as of December 31, 2023 . In the event that ABS II has cash flow in excess of the required payments, ABS II is required to pay between 50% to 100% of the excess cash flow, contingent on certain performance metrics, as additional principal, with the remaining excess cash flow, if any, remaining with the Group. In particular, (a) (i) if the DSCR as of any payment date is less than 1.15 to 1.00, then 100% , (ii) if the DSCR as of such payment date is greater than or equal to 1.15 to 1.00 and less than 1.25 to 1.00, then 50% , or (iii) if the DSCR as of such payment date is greater than or equal to 1.25 to 1.00, then 0% ; (b) if the production tracking rate for ABS II is less than 80.0% , then 100% , else 0% ; (c) if the loan-to-value ratio (“LTV”) as of such payment date is greater than 65.0% , then 100% , else 0% ; (d) with respect to any payment date after July 1, 2024 and prior to July 1, 2025, if LTV is greater than 40.0% and ABS II has executed hedging agreements for a minimum period of 30 months starting July 2026 covering production volumes of at least 85% but no more than 95% (the “Extended Hedging Condition”), then 50% , else 0% ; (e) with respect to any payment date after July 1, 2025 and prior to October 1, 2025, if LTV is greater than 40.0% or ABS II has not satisfied the Extended Hedging Condition, then 50% , else 0% ; and (f) with respect to any payment date after October 1, 2025, if LTV is greater than 40.0% or ABS II has not satisfied the Extended Hedging Condition, then 100% , else 0% . During the year ended December 31, 2023 , the Group made no excess cash flow payments on the ABS II Notes. ABS III Note In February 2022 , the Group formed Diversified ABS III LLC (“ABS III”), a limited-purpose, bankruptcy-remote, wholly-owned subsidiary, to issue BBB rated asset-backed securities for an aggregate principal amount of $365,000 at par. The ABS III Notes are secured by certain of the Group’s upstream producing, as well as certain midstream, Appalachian assets. The ABS III Notes accrue interest at a stated 4.875% rate per annum and have a final maturity date of April 2039 with an amortizing maturity of November 2030 . Interest and principal payments on the ABS III Notes are payable on a monthly basis. During the years ended December 31, 2023 and 2022 , the Group incurred $14,515 and $15,325 in interest related to the ABS III Notes, respectively. The fair value of the ABS III Notes is approximately $250,158 as of December 31, 2023 . In the event that ABS III has cash flow in excess of the required payments, ABS III is required to pay between 50% to 100% of the excess cash flow, contingent on certain performance metrics, as additional principal, with the remaining excess cash flow, if any, remaining with the Group. In particular, (a) (i) if the DSCR as of any payment date is greater than or equal to 1.25 to 1.00, then 0% , (ii) if the DSCR as of such payment date is less than 1.25 to 1.00 but greater than or equal to 1.15 to 1.00, then 50% , and (iii) if the DSCR as of such Payment Date is less than 1.15 to 1.00, then 100% ; (b) if the production tracking rate for ABS III (as described in the ABS III Indenture) is less than 80% , then 100% , else 0% ; and (c) if the LTV for ABS III is greater than 65% , then 100% , else 0% . During the year ended December 31, 2023 , the Group made no excess cash flow payments on the ABS III Notes. ABS IV Note In February 2022 , the Group formed Diversified ABS IV LLC (“ABS IV”), a limited-purpose, bankruptcy-remote, wholly-owned subsidiary, to issue BBB rated asset-backed securities for an aggregate principal amount of $160,000 at par. The ABS IV Notes are secured by a portion of the upstream producing assets acquired in connection with the Blackbeard Acquisition. The ABS IV Notes accrue interest at a stated 4.95% rate per annum and have a final maturity date of February 2037 with an amortizing maturity of September 2030 . Interest and principal payments on the ABS IV Notes are payable on a monthly basis. During the year ended December 31, 2023 and 2022 , the Group incurred $5,703 and $6,235 in interest related to the ABS IV Notes, respectively. The fair value of the ABS IV Notes is approximately $92,345 as of December 31, 2023 . In the event that ABS IV has cash flow in excess of the required payments, ABS IV is required to pay between 50% to 100% of the excess cash flow, contingent on certain performance metrics, as additional principal, with the remaining excess cash flow, if any, remaining with the Group. In particular, (a) (i) if the DSCR as of any payment date is greater than or equal to 1.25 to 1.00, then 0% , (ii) if the DSCR as of such payment date is less than 1.25 to 1.00 but greater than or equal to 1.15 to 1.00, then 50% , and (iii) if the DSCR as of such Payment Date is less than 1.15 to 1.00, then 100% ; (b) if the production tracking rate for ABS IV is less than 80% , then 100% , else 0% ; and (c) if the LTV for ABS IV is greater than 65% , then 100% , else 0% . During the year ended December 31, 2023 , the Group made no excess cash flow payments on the ABS IV Notes. ABS V Notes In May 2022 , the Group formed Diversified ABS V LLC (“ABS V”), a limited-purpose, bankruptcy-remote, wholly-owned subsidiary, to issue BBB rated asset-backed securities for an aggregate principal amount of $445,000 at par. The ABS V Notes are secured by a majority of the Group’s remaining upstream assets in Appalachia that were not securitized by previous ABS transactions. The ABS V Notes accrue interest at a stated 5.78% rate per annum and have a final maturity date of May 2039 with an amortizing maturity of December 2030 . Interest and principal payments on the ABS V Notes are payable on a monthly basis. During the year ended December 31, 2023 and 2022 , the Group incurred $19,332 and $14,319 in interest related to the ABS V Notes, respectively. The fair value of the ABS V Notes is approximately $274,061 as of December 31, 2023 . Based on whether certain performance metrics are achieved, ABS V is required to apply 50% to 100% of any excess cash flow to make additional principal payments. In particular, (a) (i) if the DSCR as of any payment date is greater than or equal to 1.25 to 1.00, then 0% , (ii) if the DSCR as of such payment date is less than 1.25 to 1.00 but greater than or equal to 1.15 to 1.00, then 50% , and (iii) if the DSCR as of such payment date is less than 1.15 to 1.00, then 100% ; (b) if the production tracking rate for ABS V is less than 80% , then 100% , else 0% ; and (c) if the LTV for ABS V is greater than 65% , then 100% , else 0% . During the year ended December 31, 2023 , the Group made no excess cash flow payments on the ABS V Notes. ABS VI Notes In October 2022 , the Group formed Diversified ABS VI LLC (“ABS VI”), a limited-purpose, bankruptcy-remote, wholly-owned subsidiary, to issue, jointly with Oaktree, BBB+ rated asset-backed securities for an aggregate principal amount of $460,000 ( $235,750 to the Group, before fees, representative of its 51.25% ownership interest in the collateral assets). The ABS VI Notes were issued at a 2.63% discount and are secured primarily by the upstream assets that were jointly acquired with Oaktree in the Tapstone acquisition. The Group recorded its proportionate share of the note in its Consolidated Statement of Financial Position. The ABS VI Notes accrue interest at a stated 7.50% rate per annum and have a final maturity date of November 2039 with an amortizing maturity of October 2031 . Interest and principal payments on the ABS VI Notes are payable on a monthly basis. During the year ended December 31, 2023 and 2022 , the Group incurred $15,433 and $3,300 in interest related to the ABS VI Notes, respectively. The fair value of the ABS VI Notes is approximately $158,284 as of December 31, 2023 . Based on whether certain performance metrics are achieved, ABS VI is required to apply 50% to 100% of any excess cash flow to make additional principal payments. In particular, (a) (i) If the DSCR as of the applicable Payment Date is less than 1.15 to 1.00, then 100% , (ii) if the DSCR as of such Payment Date is greater than or equal to 1.15 to 1.00 and less than 1.25 to 1.00, then 50% , or (iii) if the DSCR as of such Payment Date is greater than or equal to 1.25 to 1.00, then 0% ; (b) if the production tracking rate for ABS VI is less than 80% , then 100% , else 0% ; and (c) if the LTV for ABS VI is greater than 75% , then 100% , else 0% . During the year ended December 31, 2023 , the Group made no excess cash flow payments on the ABS VI Notes. ABS VII Notes In November 2023, the Group formed DP Lion Equity Holdco LLC, a limited-purpose, bankruptcy-remote, wholly-owned subsidiary, to issue Class A and Class B asset-backed securities (collectively “ABS VII”) which are secured by certain upstream producing assets in Appalachia. The Class A Notes are rated BBB+ and were issued for an aggregate principal amount of $142,000 . The Class B Notes are rated BB- and were issued for an aggregate principal amount of $20,000 . The ABS VII Class A Notes accrue interest at a stated 8.243% rate per annum and have a final maturity date of November 2043 with an amortizing maturity of February 2034 . The ABS VII Class B Notes accrue interest at a stated 12.725% rate per annum and have a final maturity date of November 2043 with an amortizing maturity of August 2032 . Interest and principal payments on the ABS VII Class A and Class B Notes are payable on a monthly basis. In December 2023 , the Group divested 80% of the equity ownership in DP Lion Equity Holdco LLC to outside investors, generating cash proceeds of $30,000 . The Group evaluated the remaining 20% interest in DP Lion Equity Holdco LLC and determined that the governance structure is such that the Group does not have the ability to exercise control, joint control, or significant influence over the DP Lion Equity Holdco LLC entity. Accordingly, this entity is not consolidated within the Group’s financial statements for the year ended December 31, 2023. The Group’s remaining investment in the LLC of $7,500 is accounted for at fair value in accordance with IFRS 9, Financial Instruments (“IFRS 9”). Refer to Note 5 for additional information regarding the DP Lion Equity Holdco LLC equity sale. Debt Covenants - ABS I, II, III, IV, V AND VI NOTES (Collectively, The “ABS Notes”) and Term Loan I The ABS Notes and Term Loan I are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Issuer maintains specified reserve accounts to be used to make required interest payments in respect of the ABS Notes and Term Loan I, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the ABS Notes and Term Loan I under certain circumstances, (iii) certain indemnification payments in the event, among other things, that the assets pledged as collateral for the ABS Notes and Term Loan I are used in stated ways defective or ineffective, (iv) covenants related to recordkeeping, access to information and similar matters, and (v) the Issuer will comply with all laws and regulations which it is subject to including ERISA, Environmental Laws, and the USA Patriot Act (ABS III-V only). The ABS Notes and Term Loan I are also subject to customary accelerated amortization events provided for in the indenture, including events tied to failure to maintain stated debt service coverage ratios, failure to maintain certain production metrics, certain change of control and management termination events, and the failure to repay or refinance the ABS Notes and Term Loan I on the applicable scheduled maturity date. The ABS Notes and Term Loan I are subject to certain customary events of default, including events relating to non-payment of required interest, principal, or other amounts due on or with respect to the ABS Notes and Term Loan I, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective and certain judgments. As of December 31, 2023 the Group was in compliance with all financial covenants for the ABS Notes, Term Loan I and the Credit Facility. Sustainability-Linked Borrowings CREDIT FACILITY The Credit Facility contains three sustainability-linked performance targets (“SPTs”) which, depending on the Group’s performance thereof, may result in adjustments to the applicable margin with respect to borrowings thereunder: — GHG Emissions Intensity: The Group’s consolidated Scope 1 emissions and Scope 2 emissions, each measured as MT CO 2 e per MMcfe; — Asset Retirement Performance: The number of wells the Group successfully retires during any fiscal year; and — TRIR Performance: The arithmetic average of the two preceding fiscal years and current period total recordable injury rate computed as the Total Number of Recordable Cases (as defined by the Occupational Safety and Health Administration) multiplied by 200,000 and then divided by total hours worked by all employees during any fiscal year. The goals set by the Credit Facility for each of these categories are aspirational and represent higher thresholds than the Group has publicly set for itself. The economic repercussions of achieving or failing to achieve these thresholds, however, are relatively minor, ranging from subtracting five basis points to adding five basis points to the applicable margin level in any given fiscal year. An independent third-party assurance provider is required to certify the Group’s performance of the SPTs. ABS III & IV In connection with the issuance of the ABS III & IV notes, the Group retained an independent international provider of sustainability research and services to provide and maintain a “sustainability score” with respect to Diversified Energy Company PLC and to the extent such score is below a minimum threshold established at the time of issue of the ABS III & IV notes, the interest payable with respect to the subsequent interest accrual period will increase by five basis points. This score is not dependent on the Group meeting or exceeding any sustainability performance metrics but rather an overall assessment of the Group’s corporate sustainability profile. Further, this score is not dependent on the use of proceeds of the ABS III & IV notes and there were no such restrictions on the use of proceeds other than pursuant to the terms of the Group’s Credit Facility. The Group informs the ABS III & IV note holders in monthly note holder statements as to any change in interest rate payable on the ABS III & IV notes as a result of the change in this sustainability score. ABS V & VI In addition, a “second party opinion provider” certified the terms of the ABS V & VI notes as being aligned with the framework for sustainability-linked bonds of the International Capital Markets Association (“ICMA”), applicable to bond instruments for which the financial and/or structural characteristics vary depending on whether predefined sustainability objectives, or SPTs, are achieved. The framework has five key components (1) the selection of key performance indicators (“KPIs”), (2) the calibration of SPTs, (3) variation of bond characteristics depending on whether the KPIs meet the SPTs, (4) regular reporting of the status of the KPIs and whether SPTs have been met and (5) independent verification of SPT performance by an external reviewer such as an auditor or environmental consultant. Unlike the ICMA’s framework for green bonds, its framework for sustainability-linked bonds does not require a specific use of proceeds. The ABS V & VI notes contain two SPTs. The Group must achieve, and have certified by April 28, 2027 for ABS V and May 28, 2027 for ABS VI (1) a reduction in Scope 1 and Scope 2 GHG emissions intensity to 2.85 MT CO 2 e/MMcfe, and/or (2) a reduction in Scope 1 methane emissions intensity to 1.12 MT CO 2 e/MMcfe. For each of these SPTs that the Group fails to meet, or have certified by an external verifier that it has met, by April 28, 2027 for ABS V and May 28, 2027 for ABS VI, the interest rate payable with respect to the ABS V & VI notes will be increased by 25 basis points. In each case, an independent third- party assurance provider will be required to certify the Group’s performance of the above SPTs by the applicable deadlines. COMPLIANCE As of December 31, 2023 , the Group met or was in compliance with all sustainability-linked debt metrics. Future Maturities The following table provides a reconciliation of the Group’s future maturities of its total borrowings as of the reporting date as follows: December 31, 2023 December 31, 2022 Not later than one year $ 200,822 $ 271,096 Later than one year and not later than five years 864,264 778,887 Later than five years 259,762 448,183 Total borrowings $ 1,324,848 $ 1,498,166 Finance Costs The following table represents the Group’s finance costs for each of the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Interest expense, net of capitalized and income amounts (a) $ 117,808 $ 86,840 $ 42,370 Amortization of discount and deferred finance costs 16,358 13,903 8,191 Other — 56 67 Total finance costs $ 134,166 $ 100,799 $ 50,628 (a) Includes payments related to borrowings and leases. Financing Activities Reconciliation of borrowings arising from financing activities: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Balance at beginning of period $ 1,440,329 $ 1,010,355 $ 717,240 Acquired as part of a business combination — 2,437 3,801 Sale of equity interest (154,966) — — Proceeds from borrowings 1,537,230 2,587,554 1,727,745 Repayments of borrowings (1,547,912) (2,139,686) (1,436,367) Costs incurred to secure financing (13,776) (34,234) (10,255) Amortization of discount and deferred financing costs 16,358 13,903 8,191 Cash paid for interest (116,784) (83,958) (42,673) Finance costs and other 116,148 83,958 42,673 Balance at end of period $ 1,276,627 $ 1,440,329 $ 1,010,355 |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE AND OTHER PAYABLES | NOTE 22 - TRADE AND OTHER PAYABLES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The following table includes a detail of trade and other payables. The fair value approximates the carrying value as of the periods presented: December 31, 2023 December 31, 2022 Trade payables $ 49,487 $ 90,437 Other payables 4,003 3,327 Total trade and other payables $ 53,490 $ 93,764 Trade and other payables are unsecured, non-interest bearing and paid as they become due. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities1 [Abstract] | |
OTHER LIABILITIES | NOTE 23 - OTHER LIABILITIES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The following table includes details of other liabilities as of the periods presented: December 31, 2023 December 31, 2022 Other non-current liabilities Other non-current liabilities $ 2,224 $ 5,375 Total other non-current liabilities $ 2,224 $ 5,375 Other current liabilities Accrued expenses (a) $ 99,723 $ 140,058 Net revenue clearing (b) 79,056 186,244 Asset retirement obligations - current 5,402 4,529 Revenue to be distributed (c) 93,322 90,899 Total other current liabilities $ 277,503 $ 421,730 (a) As of December 31, 2023 accrued expenses decreased primarily due to a $50,541 decrease in hedge settlements payables, resulting from lower commodity prices throughout 2023. As of December 31, 2022 accrued expenses primarily consisted of $61,896 for hedge settlements payables, $21,372 for accrued post production expense, $15,127 in accrued payroll and bonus and $10,832 for accrued lease operating expense . The remaining balance consisted of accrued capital projects and operating expenses. Refer to the Financial Review for more information on year-over-year changes in other liabilities and their fixed and variable nature. (b) Net revenue clearing is estimated revenue that is payable to third-party working interest owners. The year-over-year decrease , similar to commodity receivables, was a result of lower commodity prices year-over-year. (c) Revenue to be distributed is revenue that is payable to third-party working interest owners, but has yet to be paid due to title, legal, ownership or other issues. The Group releases the underlying liability as the aforementioned issues become resolved. As the timing of resolution is unknown, the Group records the balance as a current liability. Revenue to be distributed increased year-over-year as a result of the Group’s growth. |
FAIR VALUE AND FINANCIAL INSTRU
FAIR VALUE AND FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value and Financial Instruments [Abstract] | |
FAIR VALUE AND FINANCIAL INSTRUMENTS | NOTE 24 - FAIR VALUE AND FINANCIAL INSTRUMENTS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) Fair Value The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Group utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. IFRS 13, Fair Value Measurement (“IFRS 13”) establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is defined as follows: Level 1: Inputs are unadjusted, quoted prices in active markets for identical assets at the measurement date. Level 2: Inputs (other than quoted prices included in Level 1) can include the following: (1) Observable prices in active markets for similar assets; (2) Prices for identical assets in markets that are not active; (3) Directly observable market inputs for substantially the full term of the asset; and (4) Market inputs that are not directly observable but are derived from or corroborated by observable market data. Level 3: Unobservable inputs which reflect the Directors’ best estimates of what market participants would use in pricing the asset at the measurement date. Financial Instruments WORKING CAPITAL The carrying values of cash and cash equivalents, trade receivables, other current assets, accounts payable and other current liabilities in the Consolidated Statement of Financial Position approximate fair value because of their short-term nature. For trade receivables, the Group applies the simplified approach permitted by IFRS 9, Financial Instruments (“IFRS 9”), which requires expected lifetime losses to be recognized from initial recognition of the receivables. Financial liabilities are initially measured at fair value and subsequently measured at amortized cost. For borrowings, derivative financial instruments, and leases the following methods and assumptions were used to estimate fair value: BORROWINGS The fair values of the Group’s ABS Notes and Term Loan I are considered to be a Level 2 measurement on the fair value hierarchy. The carrying values of the borrowings under the Group’s Credit Facility (to the extent utilized) approximates fair value because the interest rate is variable and reflective of market rates. The Group considers the fair value of its Credit Facility to be a Level 2 measurement on the fair value hierarchy. LEASES The Group initially measures the lease liability at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease. When this rate cannot be readily determined, the Group uses its incremental borrowing rate. DERIVATIVE FINANCIAL INSTRUMENTS The Group measures the fair value of its derivative financial instruments based upon a pricing model that utilizes market-based inputs, including, but not limited to, the contractual price of the underlying position, current market prices, natural gas and liquids forward curves, discount rates such as the U.S. Treasury yields, SOFR curve, and volatility factors. The Group has classified its derivative financial instruments into the fair value hierarchy depending upon the data utilized to determine their fair values. The Group’s fixed price swaps (Level 2) are estimated using third-party discounted cash flow calculations using the NYMEX futures index for natural gas and oil derivatives and OPIS for NGLs derivatives. The Group utilizes discounted cash flow models for valuing its interest rate derivatives (Level 2). The net derivative values attributable to the Group’s interest rate derivative contracts as of December 31, 2023 are based on (i) the contracted notional amounts, (ii) active market-quoted SOFR yield curves and (iii) the applicable credit-adjusted risk-free rate yield curve. The Group’s call options, put options, collars and swaptions (Level 2) are valued using the Black-Scholes model, an industry standard option valuation model that takes into account inputs such as contract terms, including maturity, and market parameters, including assumptions of the NYMEX and OPIS futures index, interest rates, volatility and credit worthiness. Inputs to the Black-Scholes model, including the volatility input are obtained from a third-party pricing source, with independent verification of the most significant inputs on a monthly basis. A change in volatility would result in a change in fair value measurement, respectively. The Group’s basis swaps (Level 2) are estimated using third-party calculations based upon forward commodity price curves. CONTINGENT CONSIDERATION These liabilities represent the estimated fair value of potential future payments the Group may be required to remit under the terms of historical purchase agreements entered into for asset acquisitions and business combinations. In instances when the contingent consideration relates to the acquisition of a group of assets, the Group records changes in the fair value of the contingent consideration through the basis of the asset acquired rather than through other income (expense) in the Consolidated Statement of Comprehensive Income as it does for business combinations. During the years ended December 31, 2023 , 2022 and 2021, the Grou p recorded $0 , $1,036 and $9,482 , respectively, in revaluations related to contingent consideration associated with asset acquisitions and $0 , $0 and $8,963 , respectively, associated with business combinations. The contingent consideration represented in the Group’s financial statements is associated with the 2020 Carbon and EQT acquisitions. The maximum contingent consideration payment of $15,000 associated with the Carbon acquisition and the remaining contingent consideration payment of $8,547 associated with the EQT acquisition was made during the year ended December 31, 2022, settling both contingencies in their entirety. The Group remeasures the fair value of the contingent consideration at each reporting period. This estimate requires assumptions to be made, including forecasting the NYMEX Henry Hub natural gas settlement prices relative to stated floor and target prices in future periods. In determining the fair value of the contingent consideration liability, the Group used the Monte Carlo simulation model, which considers unobservable input variables, representing a Level 3 measurement. While valued under this technique, presently there are no remaining contingent payments. There were no transfers between fair value levels for the year ended December 31, 2023 . The following table includes the Group's financial instruments as of the periods presented: December 31, 2023 December 31, 2022 Cash and cash equivalents $ 3,753 $ 7,329 Trade receivables and accrued income 190,207 296,781 Other non-current assets 9,172 4,351 Other non-current liabilities (a) (1,946) (1,669) Other current liabilities (b) (272,101) (417,201) Derivative financial instruments at fair value (557,460) (1,429,966) Leases (31,122) (28,862) Borrowings (1,324,848) (1,498,166) Total $ (1,984,345) $ (3,067,403) (a) Excludes the long-term portion of the value associated with the upfront promote received from Oaktree. (b) Includes accrued expenses, net revenue clearing and revenue to be distributed. Excludes taxes payable and asset retirement obligations. |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Financial Risk Management [Abstract] | |
FINANCIAL RISK MANAGEMENT | NOTE 25 - FINANCIAL RISK MANAGEMENT (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The Group is exposed to a variety of financial risks such as market risk, credit risk, liquidity risk, capital risk and collateral risk. The Group manages these risks by monitoring the unpredictability of financial markets and seeking to minimize potential adverse effects on its financial performance on a continuous basis. The Group’s principal financial liabilities are comprised of borrowings, leases and trade and other payables, used primarily to finance and financially guarantee its operations. The Group’s principal financial assets include cash and cash equivalents and trade and other receivables derived from its operations. The Group also enters into derivative financial instruments which, depending on market dynamics, are recorded as assets or liabilities. To assist with the design and composition of its hedging program, the Group engages a specialist firm with the appropriate skills and experience to manage its risk management derivative-related activities . Market Risk Market risk is the possibility that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market prices. Market risk is comprised of two types of risk: interest rate risk and commodity price risk. Financial instruments affected by market risk include borrowings and derivative financial instruments. Derivative and non-derivative financial instruments are used to manage market price risks resulting from changes in commodity prices and foreign exchange rates, which could have a negative effect on assets, liabilities or future expected cash flows. INTEREST RATE RISK The Group is subject to market risk exposure related to changes in interest rates. The Group’s borrowings primarily consist of fixed-rate amortizing notes and its variable rate Credit Facility as illustrated below. December 31, 2023 December 31, 2022 Borrowings Interest Rate (a) Borrowings Interest Rate (a) ABS Notes and Term Loan I $ 1,158,221 5.67 % $ 1,435,082 5.70 % Credit Facility $ 159,000 8.66 % $ 56,000 7.42 % (a) The interest rate on the ABS Notes and Term Loan I borrowings represents the weighted average fixed-rate of the notes while the interest rate presented for the Credit Facility represents the floating rate as of December 31, 2023 and 2022 , respectively. During the year ended December 31, 2022, the Credit Facility transitioned from LIBOR to SOFR during the regular redetermination in late Spring 2022. The Group did not experience a material impact from the transition. Refer to Note 21 for additional information regarding the ABS Notes, Term Loan I and Credit Facility. The table below represents the impact of a 100 basis point adjustment in the borrowing rate for the Credit Facility and the corresponding impact on finance costs. This represents a reasonably possible change in interest rate risk. Credit Facility Interest Rate Sensitivity December 31, 2023 December 31, 2022 +100 Basis Points $ 1,590 $ 560 -100 Basis Points $ (1,590) $ (560) The Group strives to maintain a prudent balance of floating and fixed-rate borrowing exposure, particularly during uncertain market conditions. As part of the Group’s risk mitigation strategy from time to time the Group enters into swap arrangements to increase or decrease exposure to floating or fixed- interest rates to account for changes in the composition of borrowings in its portfolio. As a result, the total principal hedged through the use of derivative financial instruments varies from period to period. The fair value of the Group’s interest rate swaps represents a liability of $315 and $3,228 as of December 31, 2023 and 2022 , respectively. Refer to Note 13 for additional information regarding derivative financial instruments. COMMODITY PRICE RISK The Group’s revenues are primarily derived from the sale of its natural gas, NGLs and oil production, and as such, the Group is subject to commodity price risk. Commodity prices for natural gas, NGLs and oil can be volatile and can experience fluctuations as a result of relatively small changes in supply, weather conditions, economic conditions and government actions. For the years ended December 31, 2023 , 2022 and 2021, the Group’s commodity revenue was $802,399 , $1,873,011 and $973,107 , respectively. The Group enters into derivative financial instruments to mitigate the risk of fluctuations in commodity prices. The total volumes hedged through the use of derivative financial instruments varies from period to period, but generally the Group’s objective is to hedge at least 65% for the next 12 months, at least 50% in months 13 to 24 , and a minimum of 30% in months 25 to 36 , of its anticipated production volumes. Refer to Note 13 for additional information regarding derivative financial instruments. By removing price volatility from a significant portion of the Group’s expected production through 2032, it has mitigated, but not eliminated, the potential effects of changing prices on its operating cash flow for those periods. While mitigating negative effects of falling commodity prices, these derivative contracts also limit the benefits the Group would receive from increases in commodity prices. Credit and Counterparty Risk The Group is exposed to credit and counterparty risk from the sale of its natural gas, NGLs and oil. Trade receivables from customers are amounts due for the purchase of natural gas, NGLs and oil. Collectability is dependent on the financial condition of each customer. The Group reviews the financial condition of customers prior to extending credit and generally does not require collateral in support of their trade receivables. The Group had no customers that comprised over 10% of its total trade receivables from customers as of December 31, 2023 and 2022 . As of December 31, 2023 and 2022 , the Group’s trade receivables from customers, net of the applicable allowance for credit losses, were $168,913 and $278,030 , respectively. The Group is also exposed to credit risk from joint interest owners, entities that own a working interest in the properties operated by the Group. Joint interest receivables are classified in trade receivables, net in the Consolidated Statement of Financial Position. The Group has the ability to withhold future revenue payments to recover any non-payment of joint interest receivables. As of December 31, 2023 and 2022 , the Group’s joint interest receivables, net of the applicable allowance for credit losses, were $21,294 and $18,751 , respectively. T rade receivables are current and the Group believes these net receivables are collectible. Refer to Note 3 for additional information. Liquidity Risk Liquidity risk is the possibility that the Group will not be able to meet its financial obligations as they fall due. The Group manages this risk by maintaining adequate cash reserves through the use of cash from operations and borrowing capacity on the Credit Facility. The Group also continuously monitors its forecast and actual cash flows to ensure it maintains an appropriate amount of liquidity. The amounts disclosed in the following table are the contractual cash flows. Not Later Than One Year Later Than One Year and Not Later Than Five Years Later Than Five Years Total For the year ended December 31, 2023 Trade and other payables $ 53,490 $ — $ — $ 53,490 Borrowings 200,822 864,264 259,762 1,324,848 Leases 12,358 22,531 — 34,889 Other liabilities (a) 178,779 2,224 — 181,003 Total $ 445,449 $ 889,019 $ 259,762 $ 1,594,230 For the year ended December 31, 2022 Trade and other payables $ 93,764 $ — $ — $ 93,764 Borrowings 271,096 778,887 448,183 1,498,166 Leases 10,925 21,523 — 32,448 Other liabilities (a) 326,302 5,375 — 331,677 Total $ 702,087 $ 805,785 $ 448,183 $ 1,956,055 (a) Represents accrued expenses and net revenue clearing. Excludes taxes payable, asset retirement obligations and revenue to be distributed. Capital Risk The Group defines capital as the total of equity shareholders’ funds and long-term borrowings net of available cash balances. The Group’s objectives when managing capital are to provide returns for shareholders, maintain appropriate leverage and safeguard the ability to continue as a going concern while pursuing opportunities for growth through identifying and evaluating potential acquisitions and constructing new infrastructure on existing proved leaseholds. The Directors do not establish a quantitative return on capital criteria, but rather promote year-over-year adjusted EBITDA growth. The Group seeks to maintain a leverage target at or under 2.5x . Collateral Risk As of December 31, 2023 , t he Group has pledged 100% of its upstream natural gas and oil properties in the Appalachia and Central Region, along with certain midstream assets, to fulfill the collateral requirements for borrowings under the ABS Notes, Term Loan I and Credit Facility. The fair value of the collateral is based on a third-party engineering reserve calculation using estimated cash flows discounted at 10% and a commodities futures price schedule. Refer to Notes 5 and 21 for additional information regarding acquisitions and borrowings, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of contingent liabilities [abstract] | |
CONTINGENCIES | NOTE 26 - COMMITMENTS AND CONTINGENCIES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) Delivery Commitments We have contractually agreed to deliver firm quantities of natural gas to various customers, which we expect to fulfill with production from existing reserves. We regularly monitor our proved developed reserves to ensure sufficient availability to meet these commitments. The following table summarizes our total gross commitments, compiled using best estimates based on our sales strategy, as of December 31, 2023 . Natural gas (MMcf) 2024 70,769 2025 16,658 2026 — Thereafter 360,114 Litigation and Regulatory Proceedings The Group is involved in various pending legal issues that have arisen in the ordinary course of business. The Group accrues for litigation, claims and proceedings when a liability is both probable and the amount can be reasonably estimated. As of December 31, 2023 and 2022 , the Group did not have any material amounts accrued related to litigation or regulatory matters. For any matters not accrued for, it is not possible to estimate the amount of any additional loss, or range of loss that is reasonably possible, but, based on the nature of the claims, management believes that current litigation, claims and proceedings are not, individually or in aggregate, after considering insurance coverage and indemnification, likely to have a material adverse impact on the Group’s financial position, results of operations or cash flows. The Group has no other contingent liabilities that would have a material impact on the Group’s financial position, results of operations or cash flows. Environmental Matters The Group’s operations are subject to environmental regulation in all the jurisdictions in which it operates, and it was in compliance as of December 31, 2023 and 2022 . The Group is unable to predict the effect of additional environmental laws and regulations which may be adopted in the future, including whether any such laws or regulations would adversely affect its operations. The Group can offer no assurance regarding the significance or cost of compliance associated with any such new environmental legislation once implemented. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 27 - RELATED PARTY TRANSACTIONS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The Group had no related party activity in 2023 , 2022 or 2021 . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Events After Reporting Period [Abstract] | |
SUBSEQUENT EVENTS | NOTE 28 - SUBSEQUENT EVENTS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AND PER UNIT DATA) The Group determined the need to disclose the following material transactions that occurred subsequent to December 31, 2023 , which have been described within each relevant footnote as follows: Description Footnote Acquisitions and Divestitures Note 5 Dividends Note 18 |
BASIS OF PREPARATION (Policies)
BASIS OF PREPARATION (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of basis of preparation of financial statements [Abstract] | |
Basis of Preparation | Basis of Preparation The Group's consolidated financial statements (the “ Group Financial Statements ”) have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The principal accounting policies set out below have been applied consistently throughout the year and are consistent with prior |
Measurement Bases | Unless otherwise stated, the Group Financial Statements are presented in U.S. Dollars, which is the Group’s subsidiaries’ functional currency and the currency of the primary economic environment in which the Group operates, and all values are rounded to the nearest thousand dollars except per share and per unit amounts and where otherwise indicated. Transactions in foreign currencies are translated into U.S. Dollars at the rate of exchange on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate at the date of the Consolidated Statement of Financial Position. Where the Group’s subsidiaries have a different functional currency, their results and financial position are translated into the presentation currency as follows: — Assets and liabilities in the Consolidated Statement of Financial Position are translated at the closing rate at the date of that Consolidated Statement of Financial Position; — Income and expenses in the Consolidated Statement of Comprehensive Income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and — All resulting exchange differences are reflected within other comprehensive income in the Consolidated Statement of Comprehensive Income. The Group Financial Statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and liabilities (including derivative instruments) held at fair value through profit and loss or through other comprehensive income. |
Segment Reporting | Segment Reporting The Group is an independent owner and operator of producing natural gas and oil wells with properties located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas and Louisiana. The Group’s strategy is to acquire long-life producing assets, efficiently operate those assets to generate free cash flow for shareholders and then to retire assets safely and responsibly at the end of their useful life. The Group’s assets consist of natural gas and oil wells, pipelines and a network of gathering lines and compression facilities which are complementary to the Group’s assets. In accordance with IFRS the Group establishes segments on the basis on which those components of the Group are evaluated regularly by the chief executive officer, DEC’s chief operating decision maker (“ CODM ”), when deciding how to allocate resources and in assessing performance. When evaluating performance as well as when acquiring and managing assets the CODM does so in a consolidated and complementary fashion to vertically integrate and improve margins. Accordingly, when determining operating segments under IFRS 8, the Group has identified one reportable segment that produces and transports natural gas, NGLs and oil in the U.S. |
Going Concern | Going Concern The Group Financial Statements have been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realization of assets and the settlement of liabilities in the normal course of business. The Directors have reviewed the Group’s overall position and outlook and are of the opinion that the Group is sufficiently well funded to be able to operate as a going concern for at least the next twelve months from the date of approval of this Annual Report & Form 20-F . The Directors closely monitor and carefully manage the Group’s liquidity risk. Our financial outlook is assessed primarily through the annual business planning process, however it is also carefully monitored on a monthly basis. This process includes regular Board discussions, led by senior leadership , at which the current performance of, and outlook for, the Group are assessed. The outputs from the business planning process include a set of key performance objectives, an assessment of the Group’s primary risks, the anticipated operational outlook and a set of financial forecasts that consider the sources of funding available to the Group (the “Base Plan”). The Base Plan incorporates key assumptions which underpin the business planning process. These assumptions are as follows: — Projected operating cash flows are calculated using a production profile which is consistent with current operating results and decline rates; — Assumes commodity prices are in line with the current forward curve which also considers basis differentials; — Operating cost levels stay consistent with historical trends; — The financial impact of our current hedging contracts in place for the assessment period, which represents approximately 83% , and 76% of total production volumes hedged for the years ending December 31, 2024 and 2025 , respectively ; and — The scenario also includes the scheduled principal and interest payments on our current debt arrangements. The Directors and management also consider various scenarios around the Base Plan that primarily reflect a more severe, but plausible, downside impact of the principal risks, both individually and in the aggregate, as well as the additional capital requirements that downside scenarios could place on us . These scenarios are as follows: Scenario 1: Cyclically low gas prices for a year (Henry Hub prices of $1.50 per MMbtu before returning to strip pricing), which have been historically observed in the market. Scenario 2: Considered the impact of climate change by assuming a two week period of lost production in our East Texas/ Louisiana region, which is susceptible to hurricanes, due to a natural disaster (assumed to occur once in each year of the assessment period). Scenario 3: Considered the impact of climate change by assuming a two week period of lost production in our Appalachian region (assumption of lost production in 25% of the total region), which is susceptible to flooding, due to a natural disaster (assumed to occur once in each year of the assessment period). Under these downside sensitivity scenarios, the Group continues to meet its working capital requirements, which primarily consist of derivative liabilities that, when settled, will be funded utilizing the higher commodity revenues from which the derivative liability was derived. The Group will also continue to meet the covenant requirements under its Credit Facility as well as its other existing borrowing instruments. The Directors and management consider the impact that these principal risks could, in certain circumstances, have on the Group’s prospects within the assessment period, and accordingly appraise the opportunities to actively mitigate the risk of these severe, but plausible, downside scenarios. In addition to its modelled downside going concern scenarios, the Board has stress tested the model to determine the extent of downturn which would result in a breach of covenants. Assuming similar levels of cash conversion as seen in 2023 , a decline in production volume and pricing well in excess of that historically experienced by the Group would need to persist throughout the going concern period for a covenant breach to occur, which is considered very unlikely. In addition to the scenarios above, the Directors also considered the current geopolitical environment and the inflationary pressures that are currently impacting the U.S., which are being closely monitored by the Group. Notwithstanding the modelling of specific hypothetical scenarios, the Group believes that the impact associated with these events will largely continue to be reflected in commodity markets and will extend the volatility experienced in recent months. The Group considers commodity price risk a principal risk and will continue to actively monitor and mitigate this risk through our hedging program. Based on the above, the Directors have reviewed the Group’s overall position and outlook and are of the opinion that the Group is sufficiently f unded to be able to operate as a going concern for t he next twelve months from the date of approval of the Group Financial Statements . |
Prior Period Reclassifications and Changes in Presentation | Prior Period Reclassifications and Changes in Presentation Reclassifications in the Consolidated Statement of Financial Position The Group reclassified $41,907 to “taxes payable” from “other current liabilities” in the accompanying 2022 Consolidated Statement of Financial Position to conform to current year presentation. Reclassifications in the Consolidated Statement of Cash Flows The Group reclassified certain amounts in it prior year Consolidated Statement of Cash Flows to conform to its current period presentation. These changes in classification do not affect net cash provided by (used in) financing activities previously reported in the Consolidated Statement of Cash Flows. The Group reclassified $1,022 and $1,050 in “principal element of lease payments” to “cash paid for interest” for the years ended December 31, 2022 and 2021 , respectively. |
Basis of Consolidation | Basis of Consolidation The Group Financial Statements for the year ended December 31, 2023 reflect the following corporate structure of the Group, and its wholly owned subsidiaries: — Diversified Energy Company PLC (“DEC”) as well as its wholly owned subsidiaries — Diversified Gas & Oil Corporation — Diversified Production LLC — Diversified ABS Holdings LLC — Diversified ABS LLC — Diversified ABS Phase II Holdings LLC — Diversified ABS Phase II LLC — Diversified ABS Phase III Holdings LLC — Diversified ABS Phase III LLC — Diversified ABS III Upstream LLC — Diversified ABS Phase III Midstream LLC — Diversified ABS Phase IV Holdings LLC — Diversified ABS Phase IV LLC — Diversified ABS Phase V Holdings LLC — Diversified ABS Phase V LLC — Diversified ABS V Upstream LLC — DP Bluegrass Holdings LLC — DP Bluegrass LLC — Chesapeake Granite Wash Trust (a) — BlueStone Natural Resources II LLC — Sooner State Joint ABS Holdings LLC (b) — Diversified ABS Phase VI Holdings LLC — Diversified ABS Phase VI LLC — Diversified ABS VI Upstream LLC — Oaktree ABS VI Upstream LLC — DP Lion Equity Holdco LLC (c) — DP Lion HoldCo LLC (c) — DP Vandalia Equity Holdco LLC — DP Vandalia Holdco LLC — DP RBL Co LLC — DP Legacy Central LLC — Diversified Energy Marketing LLC — DP Tapstone Energy Holdings LLC — DP Legacy Tapstone LLC — TGG Cotton Valley Assets, LLC — Giant Land, LLC (d) — Link Land LLC (d) — Old Faithful Land LLC (d) — Riverside Land LLC (d) — Splendid Land LLC (d) — DP Production Holdings II LLC — Diversified Midstream LLC — Cranberry Pipeline Corporation — Coalfield Pipeline Company — DM Bluebonnet LLC — Black Bear Midstream Holdings LLC — Black Bear Midstream LLC — Black Bear Liquids LLC — Black Bear Liquids Marketing LLC — DM Pennsylvania Holdco LLC — DGOC Holdings Sub III LLC — Diversified Energy Group LLC — Diversified Energy Company LLC — Next LVL Energy, LLC (a) Diversified Production, LLC holds 50.8% of the issued and outstanding common shares of Chesapeake Granite Wash Trust. (b) Owned 51.25% by Diversified Production LLC. (c) Diversified Production, LLC holds 20% of the issued and outstanding equity of DP Lion Equity Holdco LLC. This entity is not consolidated within the Group’s financial statements as of December 31, 2023 . Refer to Note 5 for additional information. (d) Owned 55% by Diversified Energy Company PLC. |
Business Combinations and Asset Acquisitions | Business Combinations and Asset Acquisitions The Group performs an assessment of each acquisition to determine whether the acquisition should be accounted for as an asset acquisition or a business combination. For each transaction, the Group may elect to apply the concentration test to determine if the fair value of assets acquired is substantially concentrated in a single asset (or a group of similar assets). If this concentration test is met, the acquisition qualifies as an acquisition of a group of assets and liabilities, not of a business. Accounting for business combinations under IFRS 3 is applied once it is determined that a business has been acquired. Under IFRS 3, a business is defined as an integrated set of activities and assets conducted and managed for the purpose of providing a return to investors. A business generally consists of inputs, processes applied to those inputs, and resulting outputs that are, or will be, used to generate revenues. When less than the entire interest of an entity is acquired, the choice of measurement of the non-controlling interest, either at fair value or at the proportionate share of the acquiree’s identifiable net assets, is determined on a transaction by transaction basis. |
Inventory | Inventory Natural gas inventory is stated at the lower of cost and net realizable value, cost being determined on a weighted average cost basis. Inventory also consists of material and supplies used in connection with the Group’s maintenance, storage and handling. Inventory is stated at the lower of cost or net realizable value. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash on the balance sheet comprises cash at banks. Balances held at banks, at times, exceed U.S. federally insured amounts. The Group has not experienced any losses in such accounts and the Directors believe the Group is not exposed to any significant credit risk on its cash. |
Trade Receivables | Trade Receivables Trade receivables are stated at the historical carrying amount, net of any provisions required. Trade receivables are due from customers throughout the natural gas and oil industry. Although dispersed among several customers, collectability is dependent on the financial condition of each individual customer as well as the general economic conditions of the industry. The Directors review the financial condition of customers prior to extending credit and generally do not require collateral to support the recoverability of the Group’s trade receivables. Any changes in the Group’s allowance for expected credit losses during the year are recognized in the Consolidated Statement of Comprehensive Income. Trade receivables also include certain receivables from third-party working interest owners as well as hedge settlement receivables. The Group consistently assesses the collectability of these receivables. |
Impairment of Financial Assets | Impairment of Financial Assets IFRS 9 requires the application of an expected credit loss model in considering the impairment of financial assets. The expected credit loss model requires the Group to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition of the financial assets. The credit event does not have to occur before credit losses are recognized. IFRS 9 allows for a simplified approach for measuring the loss allowance at an amount equal to lifetime expected credit losses for trade receivables. The Group applies the simplified approach to the expected credit loss model to trade receivables arising from: — Sales of natural gas, NGLs and oil; — Sales of gathering and transportation of third-party natural gas; and — The provision of other services. |
Borrowings | Borrowings Borrowings are recognized initially at fair value, net of any applicable transaction costs incurred. Borrowings are subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the Consolidated Statement of Comprehensive Income over the period of the borrowings using the effective interest method. Interest on borrowings is accrued as applicable to each class of borrowing. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are used as part of the Group’s overall strategy to mitigate risk associated with the unpredictability of cash flows due to volatility in commodity prices. Further details of the Group’s exposure to these risks are detailed in Note 25 . The Group has entered into financial instruments which are considered derivative contracts, such as swaps and collars, which result in net cash settlements each month and do not result in physical deliveries. The derivative contracts are initially recognized at fair value at the date the contract is entered into and remeasured to fair value every balance sheet date. The resulting gain or loss is recognized in the Consolidated Statement of Comprehensive Income in the year incurred in the gain (loss) on derivative financial instruments line item. |
Restricted Cash | R estricted Cash Cash held on deposit for bonding purposes is classified as restricted cash and recorded within current and non-current assets. The cash (1) is restricted in use by state governmental agencies to be utilized and drawn upon if the operator should abandon any wells, or (2) is being held as collateral by the Group’s surety bond providers. Additionally, the Group is required to maintain certain reserves for interest payments related to its asset-backed securitizations discussed in Note 21 . These reserves approximate six to seven months of interest as well as any associated fees. The Group classifies restricted cash as current or non-current based on the classification of the associated asset or liability to which the restriction relates. This reserve cash is managed and held by an indenture trustee who monitors the reserve month to month ensuring the proper quantum is maintained. This trustee is independent, and the conditions of the deposit prevent |
Natural Gas and Oil Properties | Natural Gas and Oil Properties Natural gas and oil activities are accounted for using the principles of the successful efforts method of accounting as described below. DEVELOPMENT AND ACQUISITION COSTS Costs incurred to purchase, lease, or otherwise acquire a property are capitalized when incurred. Expenditures related to the construction, installation or completion of infrastructure facilities, such as platforms, and the drilling of development wells, including delineation wells, are capitalized within natural gas and oil properties. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, and the initial estimate of the asset retirement obligation. DEPLETION Proved natural gas, oil and NGL reserve volumes are used as the basis to calculate unit-of-production depletion rates. Leasehold costs are depleted on the unit-of-production basis over the total proved reserves of the relevant area while production and development wells are depleted over proved producing reserves. |
Intangible Assets | Intangible Assets SOFTWARE DEVELOPMENT Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognized as intangible assets where the following criteria are met: — It is technically feasible to complete the software so that it will be available for use; — The Directors intend to complete the software and use or sell it; — There is an ability to use the software; — It can be demonstrated how the software will generate probable future economic benefits; — Adequate technical, financial and other resources to complete the development and to use the software are available; and — The expenditure attributable to the software during its development can be reliably measured. Directly attributable costs that are capitalized as part of the software include cost incurred by third parties, employee costs and an appropriate portion of relevant overheads. Capitalized development costs are recorded as intangible assets and amortized from the point at which the asset is ready for use. Costs associated with maintaining software programs are recognized as an expense as incurred. IMPAIRMENT OF INTANGIBLE ASSETS Intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Intangible assets that suffer an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. AMORTIZATION The Group amortizes intangible assets with a limited useful life, using the straight-line method over the following periods: Range in Years Software 3 - 5 Other acquired intangibles (a) 3 (a) Represents intangible assets acquired in business combinations and asset acquisitions. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any. The cost of property, plant and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the Directors. Property, plant and equipment are generally depreciated on a straight-line basis over their estimated useful lives: Range in Years Buildings and leasehold improvements 10 - 40 Equipment 5 - 10 Motor vehicles 5 Midstream assets 10 - 15 Other property and equipment 5 - 10 Property, plant and equipment held under leases are depreciated over the shorter of the lease term or estimated useful life. |
Impairment of Non-Financial Assets | Impairment of Non-Financial Assets At each reporting date, the Directors assess whether indications exist that an asset may be impaired. If indications exist, or when annual impairment testing for an asset is required, the Directors estimate the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s, or cash generating unit’s, fair value less costs to sell and its value-in-use, and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the Directors consider the asset impaired and write the asset down to its recoverable amount. In assessing value-in- use, the Directors discount the estimated future cash flows to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, the Directors consider recent market transactions, if available. If no such transactions can be identified, the Directors will utilize an appropriate valuation model. |
Non-Controlling Interests | Non-Controlling Interests Non-controlling interests represent the equity in subsidiaries that is not attributable to the Group’s shareholders. The acquisition of a non-controlling interest in a subsidiary and the sale of an interest while retaining control are accounted for as transactions within equity and are reported within non-controlling interests in the consolidated financial statements. |
Leases | Leases The Group recognizes a right-of-use asset and a lease liability at the commencement date of contracts (or separate components of a contract) which convey to the Group the right to control the use of an identified asset for a period of time in exchange for consideration, when such contracts meet the definition of a lease as determined by IFRS 16, Leases (“IFRS 16”). The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inception date. The Group initially measures the lease liability at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease. When this rate can not be readily determined, the Group uses its incremental borrowing rate. After the commencement date, the lease liability is reduced for payments made by the lessee and increased for interest on the lease liability. Right-of-use assets are initially measured at cost, which comprises: — The amount of the initial measurement of the lease liability; — Any lease payments made at or before the commencement date, less any lease incentives received, any initial direct costs incurred by the lessee; and — An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease unless those costs are incurred to produce inventories. Subsequent to the measurement date, the right-of-use asset is depreciated on a straight line basis for a period of time that reflects the life of the underlying asset, and also adjusted for the remeasurement of any lease liability. |
Asset Retirement Obligations | Asset Retirement Obligations Where a liability for the retirement of a well, removal of production equipment and site restoration at the end of the production life of a well exists, the Group recognizes a liability for asset retirement. The amount recognized is the present value of estimated future net expenditures determined in accordance with our anticipated retirement plans as well as with local conditions and requirements. The unwinding of the discount on the decommissioning liability is included as accretion of the decommissioning provision. The cost of the relevant property, plant and equipment asset is increased with an amount equivalent to the liability and depreciated on a unit of production basis. The Group recognizes changes in estimates prospectively, with corresponding adjustments to the liability and the associated non-current asset. As of December 31, 2023 and 2022 , the Group had no midstream asset retirement obligations . |
Taxation | Taxation DEFERRED TAXATION Deferred tax assets and liabilities arise from temporary differences between the tax bases of assets and liabilities and their carrying amounts in the Group Financial Statements . Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred liability is settled. Deferred tax assets are recognized to the extent that it is probable that the future taxable profit will be available against which the temporary differences can be utilized. CURRENT TAXATION Current income tax assets and liabilities for the years ended December 31, 2023 and 2022 were measured at the amount to be recovered from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the jurisdictions where the Group operates and generates taxable income. UNCERTAIN TAX POSITIONS Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances based on either the most likely amount, or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. |
Revenue Recognition | Revenue Recognition NATURAL GAS, NGLs AND OIL Commodity revenue is derived from sales of natural gas, NGLs and oil products and is recognized when the customer obtains control of the commodity. This transfer generally occurs when the product is physically transferred into a vessel, pipe, sales meter or other delivery mechanism. This also represents the point at which the Group carries out its single performance obligation to its customer under contracts for the sale of natural gas, NGLs and oil for the purposes of IFRS 15, Revenue from Contracts with Customers (“IFRS 15”). Commodity revenue in which the Group has an interest with other producers is recognized proportionately based on the Group’s working interest and the terms of the relevant production sharing contracts. Royalty payments or counterparty distributions, representing the portion of revenue that is due to minority working interests, is included as a liability , described in Note 23 . Commodity revenue is recorded based on the volumes accepted each day by customers at the delivery point and is measured using the respective market price index for the applicable commodity plus or minus the applicable basis differential based on the quality of the product. THIRD-PARTY GATHERING REVENUE Revenue from gathering and transportation of third-party natural gas is recognized when the customer transfers its natural gas to the entry point in the Group’s midstream network and becomes entitled to withdraw an equivalent volume of natural gas from the exit point in the Group’s midstream network under contracts for the gathering and transportation of natural gas. This transfer generally occurs when product is physically transferred into the Group’s vessel, pipe, or sales meter. The customer’s entitlement to withdraw an equivalent volume of natural gas is broadly coterminous with the transfer of natural gas into the Group’s midstream network. Customers are invoiced and revenue is recognized each month based on the volume of natural gas transported at a contractually agreed upon price per unit. THIRD-PARTY PLUGGING REVENUE Revenue from third-party asset retirement services is recognized as earned in the month work is performed and consistent with the Group’s contractual obligations. The Group’s contractual obligations in this respect are considered to be its performance obligations for the purposes of IFRS 15. OTHER REVENUE Revenue from the operation of third-party wells is recognized as earned in the month work is performed and consistent with the Group’s contractual obligations. The Group’s contractual obligations in this respect are considered to be its performance obligations for the purposes of IFRS 15. Revenue from the sale of water disposal services to third-parties into the Group’s disposal wells is recognized as earned in the month the water was physically disposed at a contractually agreed upon price per unit. Disposal of the water is considered to be the Group’s performance obligation under these contracts. Revenue is stated after deducting sales taxes, excise duties and similar levies . |
Share-Based Payments | Share-Based Payments The Group accounts for share-based payments under IFRS 2, Share-Based Payment (“IFRS 2”). All of the Group’s share-based awards are equity settled. The fair value of the awards are determined at the date of grant. As of December 31, 2023 , 2022 and 2021 , the Group had three types of share-based payment awards: RSUs, PSUs and Options. The fair value of the Group’s RSUs is measured using the stock price at the grant date. The fair value of the Group’s PSUs is measured using a Monte Carlo simulation model. The inputs to the Monte Carlo simulation model included: — The share price at the date of grant; — Expected volatility; — Expected dividends; — Risk free rate of interest; and — Patterns of exercise of the plan participants. The fair value of the Group’s Options was calculated using the Black-Scholes model as of the grant date. The inputs to the Black-Scholes model included: — The share price at the date of grant; — Exercise price; — Expected volatility; and — Risk-free rate of interest. The grant date fair value of share-based awards, adjusted for market-based performance conditions, are expensed uniformly over the vesting period. |
New or Amended Accounting Standards - Adopted | New or Amended Accounting Standards - Adopted The following accounting standards, amendments and interpretations became effective in the current year: — Disclosure of Accounting Policies: IAS 1 and IFRS Practice Statement 2 — Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction: Amendments to IAS 12 The application of these standards and interpretations effective for the first time in the current year has had no significant impact on the amounts reported in the Group Financial Statements . New or Amended Accounting Standards - Not Yet Adopted At the date of authorization of the Group Financial Statements , the following standards and interpretations, which have not been applied in the Group Financial Statements , were in issue but not yet effective. It is expected that where applicable, these standards and amendments will be adopted on each respective effective date. None of these standards are expected to have a significant impact on the Group. Amendments to IFRS Effective Date Classification of Liabilities as Current or Non-Current and Non-Current Liabilities with Covenants Annual periods beginning on or after January 1, 2024 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies [Abstract] | |
Schedule of Restricted Cash | December 31, 2023 December 31, 2022 Cash restricted by asset-backed securitizations $ 35,870 $ 54,552 Other restricted cash 382 836 Total restricted cash $ 36,252 $ 55,388 Classified as: Current asset $ 11,195 $ 7,891 Non-current asset 25,057 47,497 Total $ 36,252 $ 55,388 |
Schedule of Amortizes Intangible Assets | The Group amortizes intangible assets with a limited useful life, using the straight-line method over the following periods: Range in Years Software 3 - 5 Other acquired intangibles (a) 3 (a) Represents intangible assets acquired in business combinations and asset acquisitions. |
Schedule of Property, Plant and Equipment are Generally Depreciated on a Straight-line Basis | Property, plant and equipment are generally depreciated on a straight-line basis over their estimated useful lives: Range in Years Buildings and leasehold improvements 10 - 40 Equipment 5 - 10 Motor vehicles 5 Midstream assets 10 - 15 Other property and equipment 5 - 10 The following table summarizes the Group's natural gas and oil properties for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Costs Beginning balance $ 3,062,463 $ 2,866,353 $ 1,968,557 Additions (a) 353,888 219,490 1,012,691 Disposals (b) (209,612) (23,380) (114,895) Ending balance $ 3,206,739 $ 3,062,463 $ 2,866,353 Depletion and impairment Beginning balance $ (506,655) $ (336,275) $ (213,472) Depletion expense (168,093) (170,380) (122,803) Impairment (41,616) — — Ending balance $ (716,364) $ (506,655) $ (336,275) Net book value $ 2,490,375 $ 2,555,808 $ 2,530,078 (a) For the year ended December 31, 2023 , the Group added $266,306 related to acquisitions and $42,650 resulting from normal revisions to the Group’s asset retirement obligations. The remaining change is primarily attributable to recurring capital expenditures. For the year ended December 31, 2022 , the Company added $285,212 related to acquisitions, offset by $98,802 resulting from normal revisions to the Company’s asset retirement obligations. The remaining additions are primarily attributable to capital expenditures associated with the completion of five Tapstone wells that were under development as of December 31, 2021, and seven additional wells in which the Group participated with a non-operating interest in Appalachia. The remaining change is primarily attributable to recurring capital expenditures. For the year ended December 31, 2021 , the Group added $907,383 related to acquisitions and $78,156 resulting from normal revisions to the Group’s asset retirement obligations. The remaining change is primarily attributable to recurring capital expenditures and the revaluation of the EQT contingent consideration. Refer to Notes 5 and 19 for additional information regarding acquisitions and asset retirement obligations, respectively. (b) For the year ended December 31, 2023 , the Group divested $202,886 in natural gas and oil properties related to the sale of equity interest in DP Lion Equity Holdco LLC, the divested assets previously acquired as part of the ConocoPhillips Asset Acquisition, and other proved properties and undeveloped acreage divestitures. Disposals for the year ended December 31, 2022 were associated with divestitures of natural gas and oil properties in the normal course of business, none of which were material. For the year ended December 31, 2021 , the Group divested $113,752 in natural gas and oil properties related to the Indigo and Tanos undeveloped acreage transactions. Refer to Note 5 for additional information regarding divestitures. The following tables summarize the Group’s property, plant and equipment for the periods presented: Year Ended December 31, 2023 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 47,682 $ 30,369 $ 66,389 $ 433,484 $ 23,743 $ 601,667 Additions (a) 1,134 3,964 11,715 21,644 4,039 42,496 Disposals (561) (2,097) (6,929) — (1,489) (11,076) Ending balance (b) $ 48,255 $ 32,236 $ 71,175 $ 455,128 $ 26,293 $ 633,087 Accumulated depreciation Beginning balance $ (3,607) $ (7,627) $ (29,194) $ (95,826) $ (2,553) $ (138,807) Period changes (581) (3,024) (12,887) (27,632) (2,720) (46,844) Disposals 27 1,929 5,939 — 877 8,772 Ending balance $ (4,161) $ (8,722) $ (36,142) $ (123,458) $ (4,396) $ (176,879) Net book value $ 44,094 $ 23,514 $ 35,033 $ 331,670 $ 21,897 $ 456,208 Year Ended December 31, 2022 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 41,684 $ 9,492 $ 45,562 $ 398,663 $ 16,039 $ 511,440 Additions (a) 9,421 20,886 22,399 34,835 7,704 95,245 Disposals (3,423) (9) (1,572) (14) — (5,018) Ending balance (b) $ 47,682 $ 30,369 $ 66,389 $ 433,484 $ 23,743 $ 601,667 Accumulated depreciation Beginning balance $ (2,078) $ (4,089) $ (20,186) $ (69,501) $ (1,606) $ (97,460) Period changes (1,819) (3,547) (10,270) (26,330) (947) (42,913) Disposals 290 9 1,262 5 — 1,566 Ending balance $ (3,607) $ (7,627) $ (29,194) $ (95,826) $ (2,553) $ (138,807) Net book value $ 44,075 $ 22,742 $ 37,195 $ 337,658 $ 21,190 $ 462,860 Year Ended December 31, 2021 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 28,190 $ 6,768 $ 35,129 $ 367,331 $ 5,600 $ 443,018 Additions (a) 13,494 2,737 12,700 31,485 10,439 70,855 Disposals — (13) (2,267) (153) — (2,433) Ending balance (b) $ 41,684 $ 9,492 $ 45,562 $ 398,663 $ 16,039 $ 511,440 Accumulated depreciation Beginning balance $ (1,007) $ (2,860) $ (12,409) $ (43,597) $ (1,042) $ (60,915) Period changes (1,071) (1,231) (9,259) (25,928) (564) (38,053) Disposals — 2 1,482 24 — 1,508 Ending balance $ (2,078) $ (4,089) $ (20,186) $ (69,501) $ (1,606) $ (97,460) Net book value $ 39,606 $ 5,403 $ 25,376 $ 329,162 $ 14,433 $ 413,980 (a) Of the $42,496 in 2023 additions, $234 was related to acquisitions and $13,279 was associated with right-of-use asset additions for new leases. Of the $95,245 in 2022 additions, $26,815 was related to acquisitions and $11,295 was associated with right-of-use asset additions for new leases. The remaining capital expenditures are a result of our recurring capital needs and enhanced sustainability efforts. Of the $70,855 in 2021 additions, $25,961 was related to acquisitions and $16,554 was associated with right-of-use asset additions for new and acquired leases. Refer to Notes 5 and 20 for additional information regarding acquisitions and leases, respectively. Remaining additions are related to routine capital projects on the Group’s compressor and gathering systems, vehicle and equipment additions. (b) Buildings and Leasehold Improvements and Motor Vehicles are inclusive of right-of-use assets associated with the Group’s leases. Refer to Note 20 for additional information regarding leases. |
SIGNIFICANT ACCOUNTING JUDGME_2
SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Judgements And Estimates [Abstract] | |
Schedule of Changes in Assumptions Impact on Impairment Analysis | These changes in assumptions could have the following impact on the Group’s impairment analysis as of December 31, 2023 : Impact from Pricing Scenario 1 (a) Scenario 2 (b) Headroom/(impairment) $ (473,510) $ 7,532,007 (a) Scenario 1 includes commodity base prices of $2.04 and $39.23 for natural gas and oil, respectively, representing the lowest annual average over the last 10 years. Under this scenario, 4 fields are impaired for a total impairment charge of $473,510 . (b) Scenario 2 includes commodity base prices of $6.42 and $94.79 for natural gas and oil, respectively, representing the highest annual average over the last 10 years. Under this scenario, no fields are impaired. Impact from Discount Rate Scenario 1 (a) Scenario 2 (b) Headroom/(impairment) $ 1,253,634 $ 627,047 (a) Scenario 1 represents the Group’s reserves at a discount rate of 9.5% , which represents the lowest rate used by the Group in an acquisition over the past 3 years. Under this scenario, 1 field is impaired for a total impairment charge of $7,265 . (b) Scenario 2 represents the Group’s reserves at a discount rate of 13.5% , which represents the highest rate used by the Group in an acquisition over the past 3 years. Under this scenario, 2 fields are impaired for a total impairment charge of $134,459 . |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions And Divestitures [Abstract] | |
Summary of Provisional Assets and Liabilities | The assets and liabilities assumed were as follows: Consideration paid Cash consideration $ 262,329 Total consideration $ 262,329 Net assets acquired Natural gas and oil properties $ 263,056 Asset retirement obligations, asset portion 3,250 Property, plant and equipment 234 Derivative financial instruments, net 7,449 Other receivables 1,729 Asset retirement obligations, liability portion (3,250) Other current liabilities (10,139) Net assets acquired $ 262,329 |
Summary of Proforma Acquisition | The following table summarizes the unaudited pro forma condensed financial information of the Group as if the Indigo, Blackbeard, Tanos and Tapstone acquisitions each had occurred on January 1, 2021, the East Texas Assets and ConocoPhillips acquisition each had occurred on January 1, 2022, and the Tanos II acquisition had occurred on January 1, 2023. Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Revenues $ 883,347 $ 2,010,927 $ 1,249,983 Net income (loss) 804,649 (594,097) (279,121) |
Schedule Of Consideration Received And Net Assets (Liabilities) Divested | The total assets and liabilities divested are no longer consolidated within the Group’s financial statements and were as follows: Consideration received Cash consideration $ (30,000) Total consideration $ (30,000) Net assets divested Natural gas and oil properties $ (142,891) Restricted cash (7,345) Derivative financial instruments, net (20,328) Other assets (8,140) Borrowings 154,966 Other liabilities 9,288 Net assets divested $ (14,450) Cost basis of investment retained 2,890 Gain on sale of equity interest $ (18,440) |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue [abstract] | |
Schedule of disaggregation of revenue | The following table reconciles the Group's revenue for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Natural gas $ 557,167 $ 1,544,658 $ 818,726 NGLs 141,321 188,733 115,747 Oil 103,911 139,620 38,634 Total commodity revenue $ 802,399 $ 1,873,011 $ 973,107 Midstream 30,565 32,798 31,988 Other (a) 35,299 13,540 2,466 Total revenue $ 868,263 $ 1,919,349 $ 1,007,561 (a) Includes $28,360 in third party plugging revenue and $6,939 in other revenue. Refer to Note 3 for additional information. |
EXPENSES BY NATURE (Tables)
EXPENSES BY NATURE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Summary of Detail of the Group's Expenses | The following table provides detail of the Group's expenses for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 LOE (a) $ 213,078 $ 182,817 $ 119,594 Production taxes (b) 61,474 73,849 30,518 Midstream operating expenses (c) 69,792 71,154 60,481 Transportation expenses (d) 96,218 118,073 80,620 Total operating expenses $ 440,562 $ 445,893 $ 291,213 Depreciation and amortization 56,453 51,877 44,841 Depletion 168,093 170,380 122,803 Total depreciation, depletion and amortization $ 224,546 $ 222,257 $ 167,644 Employees, administrative costs and professional services (e) 78,659 77,172 56,812 Costs associated with acquisitions (f) 16,775 15,545 27,743 Other adjusting costs (g) 17,794 69,967 10,371 Non-cash equity compensation (h) 6,494 8,051 7,400 Total G&A $ 119,722 $ 170,735 $ 102,326 Recurring allowance for credit losses (i) 8,478 — (4,265) Total expenses $ 793,308 $ 838,885 $ 556,918 Aggregate remuneration (including Directors): Wages and salaries $ 124,834 $ 113,267 $ 83,790 Payroll taxes 10,163 9,516 7,137 Benefits 31,912 23,828 19,083 Total employees and benefits expense $ 166,909 $ 146,611 $ 110,010 (a) LOE includes costs incurred to maintain producing properties. Such costs include direct and contract labor, repairs and maintenance, water hauling, compression, automobile, insurance, and materials and supplies expenses. (b) Production taxes include severance and property taxes. Severance taxes are generally paid on produced natural gas, NGLs and oil production at fixed rates established by federal, state or local taxing authorities. Property taxes are generally based on the taxing jurisdictions’ valuation of the Group’s natural gas and oil properties and midstream assets. (c) Midstream operating expenses are daily costs incurred to operate the Group’s owned midstream assets inclusive of employee and benefit expenses. (d) Transportation expenses are daily costs incurred from third-party systems to gather, process and transport the Group’s natural gas, NGLs and oil. (e) Employees, administrative costs and professional services includes payroll and benefits for our administrative and corporate staff, costs of maintaining administrative and corporate offices, costs of managing our production operations, franchise taxes, public company costs, fees for audit and other professional services and legal compliance. (f) The Group generally incurs costs related to the integration of acquisitions, which will vary for each acquisition. For acquisitions considered to be a business combination, these costs include transaction costs directly associated with a successful acquisition transaction. These costs also include costs associated with transition service arrangements where the Group pays the seller of the acquired entity a fee to handle G&A functions until the Group has fully integrated the assets onto its systems. In addition, these costs include costs related to integrating IT systems and consulting as well as internal workforce costs directly related to integrating acquisitions into the Group’s system. (g) Other adjusting costs for the year ended December 31, 2023 were primarily associated with legal and professional fees related to the U.S. listing, legal fees for certain litigation, and expenses associated with unused firm transportation agreements. Other adjusting costs for the year ended December 31, 2022 primarily consisted of $28,345 in contract terminations which will allow the Group to obtain more favorable pricing in the future and $31,099 in costs associated with deal breakage and/or sourcing costs for acquisitions. Other adjusting costs for the year ended December 31, 2021 were primarily associated with one-time projects and contemplated transactions. Also included in other adjusting costs were expenses associated with unused firm transportation agreements. (h) Non-cash equity compensation reflects the expense recognition related to share-based compensation provided to certain key members of the management team. Refer to Note 17 for additional information regarding non-cash share-based compensation. (i) Allowance for credit losses consists of the recognition and reversal of credit losses. Refer to Note 14 for additional information regarding credit losses. |
Summary of Number of Employees | The number of employees was as follows for the years presented (employee count not shown in thousands) : Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Number of production support employees, including Directors 389 362 283 Number of production employees 1,214 1,220 1,143 Workforce 1,603 1,582 1,426 |
Summary of Directors Remuneration | The Directors’ remuneration was as follows for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Executive Directors Salary $ 1,073 $ 1,157 $ 1,119 Taxable benefits (a) 20 24 22 Benefit plan (b) 46 73 71 Bonus (c) 1,130 1,631 1,427 Long-term incentives (c) 2,322 3,193 3,018 Total Executive Directors' remuneration $ 4,591 $ 6,078 $ 5,657 Non-Executive Directors Fees $ 994 $ 911 $ 683 Total Non-Executive Directors' remuneration $ 994 $ 911 $ 683 Total remuneration $ 5,585 $ 6,989 $ 6,340 (a) Taxable benefits were comprised of life insurance premiums and automobile reimbursements. (b) Reflects matching contributions under the Group’s 401(k) plan. (c) Further details of the bonus outcome for 2023 and long-term incentives can be found in the Remuneration Committee’s Report within this Annual Report & Form 20-F |
Summary of Auditor's Remuneration | Auditors’ remuneration for the Group was as follows for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Auditors' remuneration Fees payable to the Group’s external auditors and their associates for the audit of the consolidated financial statements (a) $ 2,140 $ 1,790 $ 1,694 Fees payable for the audit of the financial statements of the Company's subsidiaries (b) 150 160 — Audit-related assurance services (c) 1,078 874 1,628 Other assurance services 13 — — Total auditors' remuneration $ 3,381 $ 2,824 $ 3,322 (a) 2023 fees include $249 in relation to additional fees agreed and billed in post signing the 2022 consolidated accounts. (b) 2022 fees have been revised to reflect additional scope change for the audit of the subsidiary accounts. (c) Fees associated with the Group’s interim review and capital market activity which is outside the scope of the audit of the consolidated financial statements. 2022 fees have been revised to reflect additional work performed for the interim review. |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes in the Consolidated Statement of Comprehensive Income is summarized below: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Current income tax (benefit) expense Federal (benefit) expense $ 7,289 $ (513) $ 25,738 State (benefit) expense 5,902 2,841 11,958 Foreign - UK (benefit) expense — 107 (52) Total current income tax (benefit) expense $ 13,191 $ 2,435 $ 37,644 Deferred income tax (benefit) expense Federal (benefit) expense $ 202,133 $ (169,531) $ (233,679) State (benefit) expense 25,460 (11,863) (29,597) Foreign - UK (benefit) expense (141) 55 (62) Total deferred income tax (benefit) expense $ 227,452 $ (181,339) $ (263,338) Total income tax (benefit) expense $ 240,643 $ (178,904) $ (225,694) |
Schedule of Effective Tax Rates Reconciliation | The effective tax rates and differences between the statutory U.S. federal income tax rate and the effective tax rates are summarized as follows: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Income (loss) before taxation $ 1,000,344 $ (799,502) $ (550,900) Income tax benefit (expenses) (240,643) 178,904 225,694 Effective tax rate 24.1% 22.4% 41.0% Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Expected tax at statutory U.S. federal income tax rate 21.0% 21.0% 21.0% State income taxes, net of federal tax benefit 3.1% 1.2% 4.4% Federal credits —% —% 15.4% Other, net —% 0.2% 0.2% Effective tax rate 24.1% 22.4% 41.0% |
Schedule of Net Deferred Income Tax Asset and Effects of Deferred Tax Expense | The following table presents the components of the net deferred tax asset included in non-current assets as of the periods presented: December 31, 2023 December 31, 2022 Deferred tax asset Asset retirement obligations $ 103,998 $ 92,393 Derivative financial instruments 153,057 378,918 Allowance for doubtful accounts 4,235 2,378 Net operating loss carryover 686 3,865 Federal tax credits carryover 163,158 184,975 163(j) interest expense limitation 24,324 15,573 Other 8,695 18,934 Total deferred tax asset $ 458,153 $ 697,036 Deferred tax liability Amortization and depreciation $ (252,587) $ (255,440) Investment in partnerships (74,360) (82,930) Total deferred tax liability $ (326,947) $ (338,370) Net deferred tax asset (liability) $ 131,206 $ 358,666 Balance sheet presentation Deferred tax asset $ 144,860 $ 371,156 Deferred tax liability (13,654) (12,490) Net deferred tax asset (liability) $ 131,206 $ 358,666 The Group reported the effects of deferred tax expense as of and for the year ended December 31, 2023 : Opening Balance Consolidated Statement of Comprehensive Income Other (a) Closing Balance Asset retirement obligations $ 92,393 $ 11,605 $ — $ 103,998 Allowance for doubtful accounts 2,378 1,857 — 4,235 Net operating loss carryover 3,865 (3,179) — 686 Federal tax credits carryover 184,975 (21,817) — 163,158 Property, plant, and equipment and natural gas and oil properties (255,440) 2,853 — (252,587) Derivative financial instruments 378,918 (225,861) — 153,057 Investment in partnerships (82,930) 8,570 — (74,360) 163(j) interest expense limitation 15,573 8,751 24,324 Other 18,934 (10,231) (8) 8,695 Total deferred tax asset (liability) $ 358,666 $ (227,452) $ (8) $ 131,206 (a) Amounts primarily relate to deferred taxes acquired as part of acquisition purchase accounting. The Group reported the effects of deferred tax expense as of and for the year ended December 31, 2022 : Opening Balance Consolidated Statement of Comprehensive Income Other (a) Closing Balance Asset retirement obligations $ 114,182 $ (21,789) $ — $ 92,393 Allowance for doubtful accounts 1,734 644 — 2,378 Net operating loss carryover 562 3,360 (57) 3,865 Federal tax credits carryover 183,460 1,515 — 184,975 Property, plant, and equipment and natural gas and oil properties (266,987) 11,360 187 (255,440) Derivative financial instruments 202,802 176,116 — 378,918 Investment in partnerships (72,105) (11,068) 243 (82,930) 163(j) interest expense limitation — 15,573 15,573 Other 13,306 5,628 — 18,934 Total deferred tax asset (liability) $ 176,954 $ 181,339 $ 373 $ 358,666 (a) Amounts primarily relate to deferred taxes acquired as part of acquisition purchase accounting. The Group reported the effects of deferred tax expense as of and for the year ended December 31, 2021 : Opening Balance Consolidated Statement of Comprehensive Income Other (a) Closing Balance Asset retirement obligations $ 90,949 $ 19,052 $ 4,181 $ 114,182 Allowance for doubtful accounts 2,968 (1,320) 86 1,734 Net operating loss carryover 474 (1,655) 1,743 562 Federal tax credits carryover 99,117 84,343 — 183,460 Property, plant, and equipment and natural gas and oil properties (244,874) 65,910 (88,023) (266,987) Derivative financial instruments 46,237 156,565 — 202,802 Investment in partnerships — (67,379) (4,726) (72,105) Other 4,160 7,822 1,324 13,306 Total deferred tax asset (liability) $ (969) $ 263,338 $ (85,415) $ 176,954 (a) Amounts primarily relate to deferred taxes acquired as part of acquisition purchase accounting. |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
Schedule of Basic and Diluted Earnings (Loss) Per Share | Basic and diluted earnings (loss) per share are calculated as follows for the periods presented: Year Ended Calculation December 31, 2023 December 31, 2022 December 31, 2021 Net income (loss) attributable to Diversified Energy Company PLC A $ 758,018 $ (625,410) $ (325,509) Weighted average shares outstanding - basic B 47,165 42,204 39,677 Dilutive impact of potential shares 349 — — Weighted average shares outstanding - diluted C 47,514 42,204 39,677 Earnings (loss) per share - basic = A/B $ 16.07 $ (14.82) $ (8.20) Earnings (loss) per share - diluted = A/C $ 15.95 $ (14.82) $ (8.20) Potentially dilutive shares (a) 54 767 325 (a) Outstanding share-based payment awards excluded from the diluted EPS calculation because their effect would have been anti-dilutive. |
NATURAL GAS AND OIL PROPERTIES
NATURAL GAS AND OIL PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Extractive Industries [Abstract] | |
Schedule of Natural Gas and Oil Properties | Property, plant and equipment are generally depreciated on a straight-line basis over their estimated useful lives: Range in Years Buildings and leasehold improvements 10 - 40 Equipment 5 - 10 Motor vehicles 5 Midstream assets 10 - 15 Other property and equipment 5 - 10 The following table summarizes the Group's natural gas and oil properties for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Costs Beginning balance $ 3,062,463 $ 2,866,353 $ 1,968,557 Additions (a) 353,888 219,490 1,012,691 Disposals (b) (209,612) (23,380) (114,895) Ending balance $ 3,206,739 $ 3,062,463 $ 2,866,353 Depletion and impairment Beginning balance $ (506,655) $ (336,275) $ (213,472) Depletion expense (168,093) (170,380) (122,803) Impairment (41,616) — — Ending balance $ (716,364) $ (506,655) $ (336,275) Net book value $ 2,490,375 $ 2,555,808 $ 2,530,078 (a) For the year ended December 31, 2023 , the Group added $266,306 related to acquisitions and $42,650 resulting from normal revisions to the Group’s asset retirement obligations. The remaining change is primarily attributable to recurring capital expenditures. For the year ended December 31, 2022 , the Company added $285,212 related to acquisitions, offset by $98,802 resulting from normal revisions to the Company’s asset retirement obligations. The remaining additions are primarily attributable to capital expenditures associated with the completion of five Tapstone wells that were under development as of December 31, 2021, and seven additional wells in which the Group participated with a non-operating interest in Appalachia. The remaining change is primarily attributable to recurring capital expenditures. For the year ended December 31, 2021 , the Group added $907,383 related to acquisitions and $78,156 resulting from normal revisions to the Group’s asset retirement obligations. The remaining change is primarily attributable to recurring capital expenditures and the revaluation of the EQT contingent consideration. Refer to Notes 5 and 19 for additional information regarding acquisitions and asset retirement obligations, respectively. (b) For the year ended December 31, 2023 , the Group divested $202,886 in natural gas and oil properties related to the sale of equity interest in DP Lion Equity Holdco LLC, the divested assets previously acquired as part of the ConocoPhillips Asset Acquisition, and other proved properties and undeveloped acreage divestitures. Disposals for the year ended December 31, 2022 were associated with divestitures of natural gas and oil properties in the normal course of business, none of which were material. For the year ended December 31, 2021 , the Group divested $113,752 in natural gas and oil properties related to the Indigo and Tanos undeveloped acreage transactions. Refer to Note 5 for additional information regarding divestitures. The following tables summarize the Group’s property, plant and equipment for the periods presented: Year Ended December 31, 2023 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 47,682 $ 30,369 $ 66,389 $ 433,484 $ 23,743 $ 601,667 Additions (a) 1,134 3,964 11,715 21,644 4,039 42,496 Disposals (561) (2,097) (6,929) — (1,489) (11,076) Ending balance (b) $ 48,255 $ 32,236 $ 71,175 $ 455,128 $ 26,293 $ 633,087 Accumulated depreciation Beginning balance $ (3,607) $ (7,627) $ (29,194) $ (95,826) $ (2,553) $ (138,807) Period changes (581) (3,024) (12,887) (27,632) (2,720) (46,844) Disposals 27 1,929 5,939 — 877 8,772 Ending balance $ (4,161) $ (8,722) $ (36,142) $ (123,458) $ (4,396) $ (176,879) Net book value $ 44,094 $ 23,514 $ 35,033 $ 331,670 $ 21,897 $ 456,208 Year Ended December 31, 2022 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 41,684 $ 9,492 $ 45,562 $ 398,663 $ 16,039 $ 511,440 Additions (a) 9,421 20,886 22,399 34,835 7,704 95,245 Disposals (3,423) (9) (1,572) (14) — (5,018) Ending balance (b) $ 47,682 $ 30,369 $ 66,389 $ 433,484 $ 23,743 $ 601,667 Accumulated depreciation Beginning balance $ (2,078) $ (4,089) $ (20,186) $ (69,501) $ (1,606) $ (97,460) Period changes (1,819) (3,547) (10,270) (26,330) (947) (42,913) Disposals 290 9 1,262 5 — 1,566 Ending balance $ (3,607) $ (7,627) $ (29,194) $ (95,826) $ (2,553) $ (138,807) Net book value $ 44,075 $ 22,742 $ 37,195 $ 337,658 $ 21,190 $ 462,860 Year Ended December 31, 2021 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 28,190 $ 6,768 $ 35,129 $ 367,331 $ 5,600 $ 443,018 Additions (a) 13,494 2,737 12,700 31,485 10,439 70,855 Disposals — (13) (2,267) (153) — (2,433) Ending balance (b) $ 41,684 $ 9,492 $ 45,562 $ 398,663 $ 16,039 $ 511,440 Accumulated depreciation Beginning balance $ (1,007) $ (2,860) $ (12,409) $ (43,597) $ (1,042) $ (60,915) Period changes (1,071) (1,231) (9,259) (25,928) (564) (38,053) Disposals — 2 1,482 24 — 1,508 Ending balance $ (2,078) $ (4,089) $ (20,186) $ (69,501) $ (1,606) $ (97,460) Net book value $ 39,606 $ 5,403 $ 25,376 $ 329,162 $ 14,433 $ 413,980 (a) Of the $42,496 in 2023 additions, $234 was related to acquisitions and $13,279 was associated with right-of-use asset additions for new leases. Of the $95,245 in 2022 additions, $26,815 was related to acquisitions and $11,295 was associated with right-of-use asset additions for new leases. The remaining capital expenditures are a result of our recurring capital needs and enhanced sustainability efforts. Of the $70,855 in 2021 additions, $25,961 was related to acquisitions and $16,554 was associated with right-of-use asset additions for new and acquired leases. Refer to Notes 5 and 20 for additional information regarding acquisitions and leases, respectively. Remaining additions are related to routine capital projects on the Group’s compressor and gathering systems, vehicle and equipment additions. (b) Buildings and Leasehold Improvements and Motor Vehicles are inclusive of right-of-use assets associated with the Group’s leases. Refer to Note 20 for additional information regarding leases. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment [abstract] | |
Schedule of Property, Plant and Equipment are Generally Depreciated on a Straight-line Basis | Property, plant and equipment are generally depreciated on a straight-line basis over their estimated useful lives: Range in Years Buildings and leasehold improvements 10 - 40 Equipment 5 - 10 Motor vehicles 5 Midstream assets 10 - 15 Other property and equipment 5 - 10 The following table summarizes the Group's natural gas and oil properties for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Costs Beginning balance $ 3,062,463 $ 2,866,353 $ 1,968,557 Additions (a) 353,888 219,490 1,012,691 Disposals (b) (209,612) (23,380) (114,895) Ending balance $ 3,206,739 $ 3,062,463 $ 2,866,353 Depletion and impairment Beginning balance $ (506,655) $ (336,275) $ (213,472) Depletion expense (168,093) (170,380) (122,803) Impairment (41,616) — — Ending balance $ (716,364) $ (506,655) $ (336,275) Net book value $ 2,490,375 $ 2,555,808 $ 2,530,078 (a) For the year ended December 31, 2023 , the Group added $266,306 related to acquisitions and $42,650 resulting from normal revisions to the Group’s asset retirement obligations. The remaining change is primarily attributable to recurring capital expenditures. For the year ended December 31, 2022 , the Company added $285,212 related to acquisitions, offset by $98,802 resulting from normal revisions to the Company’s asset retirement obligations. The remaining additions are primarily attributable to capital expenditures associated with the completion of five Tapstone wells that were under development as of December 31, 2021, and seven additional wells in which the Group participated with a non-operating interest in Appalachia. The remaining change is primarily attributable to recurring capital expenditures. For the year ended December 31, 2021 , the Group added $907,383 related to acquisitions and $78,156 resulting from normal revisions to the Group’s asset retirement obligations. The remaining change is primarily attributable to recurring capital expenditures and the revaluation of the EQT contingent consideration. Refer to Notes 5 and 19 for additional information regarding acquisitions and asset retirement obligations, respectively. (b) For the year ended December 31, 2023 , the Group divested $202,886 in natural gas and oil properties related to the sale of equity interest in DP Lion Equity Holdco LLC, the divested assets previously acquired as part of the ConocoPhillips Asset Acquisition, and other proved properties and undeveloped acreage divestitures. Disposals for the year ended December 31, 2022 were associated with divestitures of natural gas and oil properties in the normal course of business, none of which were material. For the year ended December 31, 2021 , the Group divested $113,752 in natural gas and oil properties related to the Indigo and Tanos undeveloped acreage transactions. Refer to Note 5 for additional information regarding divestitures. The following tables summarize the Group’s property, plant and equipment for the periods presented: Year Ended December 31, 2023 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 47,682 $ 30,369 $ 66,389 $ 433,484 $ 23,743 $ 601,667 Additions (a) 1,134 3,964 11,715 21,644 4,039 42,496 Disposals (561) (2,097) (6,929) — (1,489) (11,076) Ending balance (b) $ 48,255 $ 32,236 $ 71,175 $ 455,128 $ 26,293 $ 633,087 Accumulated depreciation Beginning balance $ (3,607) $ (7,627) $ (29,194) $ (95,826) $ (2,553) $ (138,807) Period changes (581) (3,024) (12,887) (27,632) (2,720) (46,844) Disposals 27 1,929 5,939 — 877 8,772 Ending balance $ (4,161) $ (8,722) $ (36,142) $ (123,458) $ (4,396) $ (176,879) Net book value $ 44,094 $ 23,514 $ 35,033 $ 331,670 $ 21,897 $ 456,208 Year Ended December 31, 2022 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 41,684 $ 9,492 $ 45,562 $ 398,663 $ 16,039 $ 511,440 Additions (a) 9,421 20,886 22,399 34,835 7,704 95,245 Disposals (3,423) (9) (1,572) (14) — (5,018) Ending balance (b) $ 47,682 $ 30,369 $ 66,389 $ 433,484 $ 23,743 $ 601,667 Accumulated depreciation Beginning balance $ (2,078) $ (4,089) $ (20,186) $ (69,501) $ (1,606) $ (97,460) Period changes (1,819) (3,547) (10,270) (26,330) (947) (42,913) Disposals 290 9 1,262 5 — 1,566 Ending balance $ (3,607) $ (7,627) $ (29,194) $ (95,826) $ (2,553) $ (138,807) Net book value $ 44,075 $ 22,742 $ 37,195 $ 337,658 $ 21,190 $ 462,860 Year Ended December 31, 2021 Buildings and Leasehold Improvements Equipment Motor Vehicles Midstream Assets Other Property and Equipment Total Costs Beginning balance $ 28,190 $ 6,768 $ 35,129 $ 367,331 $ 5,600 $ 443,018 Additions (a) 13,494 2,737 12,700 31,485 10,439 70,855 Disposals — (13) (2,267) (153) — (2,433) Ending balance (b) $ 41,684 $ 9,492 $ 45,562 $ 398,663 $ 16,039 $ 511,440 Accumulated depreciation Beginning balance $ (1,007) $ (2,860) $ (12,409) $ (43,597) $ (1,042) $ (60,915) Period changes (1,071) (1,231) (9,259) (25,928) (564) (38,053) Disposals — 2 1,482 24 — 1,508 Ending balance $ (2,078) $ (4,089) $ (20,186) $ (69,501) $ (1,606) $ (97,460) Net book value $ 39,606 $ 5,403 $ 25,376 $ 329,162 $ 14,433 $ 413,980 (a) Of the $42,496 in 2023 additions, $234 was related to acquisitions and $13,279 was associated with right-of-use asset additions for new leases. Of the $95,245 in 2022 additions, $26,815 was related to acquisitions and $11,295 was associated with right-of-use asset additions for new leases. The remaining capital expenditures are a result of our recurring capital needs and enhanced sustainability efforts. Of the $70,855 in 2021 additions, $25,961 was related to acquisitions and $16,554 was associated with right-of-use asset additions for new and acquired leases. Refer to Notes 5 and 20 for additional information regarding acquisitions and leases, respectively. Remaining additions are related to routine capital projects on the Group’s compressor and gathering systems, vehicle and equipment additions. (b) Buildings and Leasehold Improvements and Motor Vehicles are inclusive of right-of-use assets associated with the Group’s leases. Refer to Note 20 for additional information regarding leases. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets and goodwill [abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill | Intangible assets consisted of the following for the periods presented: Year Ended December 31, 2023 Software Other Acquired Intangibles Total Costs Beginning balance $ 39,306 $ 7,124 $ 46,430 Additions (a) 5,949 — 5,949 Disposals (806) (2,900) (3,706) Ending balance $ 44,449 $ 4,224 $ 48,673 Accumulated amortization Beginning balance $ (22,517) $ (2,815) $ (25,332) Period changes (6,789) (907) (7,696) Disposals 806 2,900 3,706 Ending balance $ (28,500) $ (822) $ (29,322) Net book value $ 15,949 $ 3,402 $ 19,351 Year Ended December 31, 2022 Software Other Acquired Intangibles Total Costs Beginning balance $ 28,095 $ 2,900 $ 30,995 Additions (a) 11,211 4,224 15,435 Ending balance $ 39,306 $ 7,124 $ 46,430 Accumulated amortization Beginning balance $ (15,192) $ (1,669) $ (16,861) Period changes (7,325) (1,146) (8,471) Ending balance $ (22,517) $ (2,815) $ (25,332) Net book value $ 16,789 $ 4,309 $ 21,098 Year Ended December 31, 2021 Software Other Acquired Intangibles Total Costs Beginning balance $ 24,271 $ 2,900 $ 27,171 Additions (a) 3,824 — 3,824 Ending balance $ 28,095 $ 2,900 $ 30,995 Accumulated amortization Beginning balance $ (7,246) $ (712) $ (7,958) Period changes (7,946) (957) (8,903) Ending balance $ (15,192) $ (1,669) $ (16,861) Net book value $ 12,903 $ 1,231 $ 14,134 (a) For the years ended December 31, 2023 , 2022 and 2021 additions were related to software enhancements and other acquired intangibles. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Financial Instruments [Abstract] | |
Summary of Net Fair Value of Derivative Financial Instruments | The following tables summarize the Group's calculated net fair value of derivative financial instruments as of the reporting date as follows: NATURAL GAS CONTRACTS Weighted Average Price per Mcfe (a) Volume Sold Purchased Sold Basis Fair Value at (Mmbtu) Swaps Puts Puts Calls Differential December 31, 2023 2024 Swaps 191,397 $ 3.30 $ — $ — $ — $ — $ 74,340 Collars 2,560 — — 4.03 6.25 — 3,278 Stand-Alone Calls, net (b) — — — — — — (36,415) Basis Swaps 163,595 — — — — (0.73) (1,306) Total 2024 contracts 357,552 39,897 2025 Swaps 164,672 $ 3.21 $ — $ — $ — $ — $ (76,697) Stand-Alone Calls, net (b) — — — — — — (33,060) Basis Swaps 25,550 — — — — (0.21) 372 Total 2025 contracts 190,222 (109,385) 2026 Swaps 120,559 $ 3.18 $ — $ — $ — $ — $ (95,779) Stand-Alone Calls 10,950 — — — 3.75 — (8,153) Basis Swaps 10,950 — — — — (0.21) (342) Total 2026 contracts 142,459 (104,274) 2027 Swaps 101,303 $ 3.21 $ — $ — $ — $ — $ (76,188) Collars 1,414 — — 4.28 7.17 — 601 Stand-Alone Calls 10,950 — — — 3.75 — (8,784) Purchased puts 4,906 — — 2.25 — — 498 Sold puts 4,906 — 1.93 — — — (275) 2028 Swaps 71,324 $ 2.79 $ — $ — $ — $ — $ (71,625) Collars 5,382 — — 4.28 6.90 — 2,616 Purchased puts 20,351 — — 2.77 — — 8,622 Sold puts 20,351 — 1.93 — — — (4,711) 2029 Swaps 29,190 $ 2.11 $ — $ — $ — $ — $ (40,451) Collars 3,726 — — 4.28 7.51 — 2,150 Purchased puts 30,066 — — 2.92 — — 10,782 Sold puts 30,066 — 1.93 — — — (3,257) 2030 Swaps 5,450 $ 2.03 $ — $ — $ — $ — $ (7,979) Purchased puts 14,492 — — 2.93 — — 5,362 Sold puts 14,492 — 1.93 — — — (1,735) Swaptions 10/1/2024-9/30/2028 (c) 14,610 $ 2.91 $ — $ — $ — $ — $ (12,749) 1/1/2025-12/31/2029 (d) 36,520 2.77 — — — — (36,684) 4/1/2026-3/31/2030 (e) 82,171 2.57 — — — — (97,901) 4/1/2030-3/31/2032 (f) 42,627 2.57 — — — — (47,143) Total 2027-2032 contracts 544,297 $ (378,851) Total natural gas contracts 1,234,530 $ (552,613) (a) Rates have been converted from Btu to Mcfe using a Btu conversion factor of 1.07 . (b) Future cash settlements for deferred premiums. (c) Option expires on September 6, 2024 . (d) Option expires on December 23, 2024 . (e) Option expires on March 23, 2026 . (f) Option expires on March 22, 2030 . NGLs CONTRACTS Weighted Average Price per Bbl Volume Sold Fair Value at (MBbls) Swaps Calls December 31, 2023 2024 Swaps 3,301 $ 37.74 $ — $ 9,804 Stand-Alone Calls 915 — 31.29 (2,400) 2025 Swaps 2,143 $ 30.22 $ — $ (1,411) 2026 Swaps 1,097 $ 27.68 $ — $ (1,261) Total NGLs contracts 7,456 $ 4,732 OIL CONTRACTS Weighted Average Price per Bbl Volume Sold Fair Value at (MBbls) Swaps Calls December 31, 2023 2024 Swaps 431 $ 62.54 $ — $ (3,521) Sold Calls 183 — 70.00 (1,188) 2025 Swaps 366 $ 59.01 $ — $ (3,057) 2026 Swaps 283 $ 59.48 $ — $ (1,451) 2027 Swaps 162 $ 58.60 $ — $ (677) Total oil contracts 1,425 $ (9,894) INTEREST Principal Hedged Fair Value at Fixed-Rate December 31, 2023 2023 SOFR Interest Rate Swap $ 5,520 4.15% 315 Net fair value of derivative financial instruments as of December 31, 2023 $ (557,460) |
Summary of Net Derivatives | The following table outlines the Group’s net derivatives as of the periods presented: Derivative Financial Instruments Consolidated Statement of Financial Position December 31, 2023 December 31, 2022 Assets: Non-current assets Derivative financial instruments $ 24,401 $ 13,936 Current assets Derivative financial instruments 87,659 27,739 Total assets $ 112,060 $ 41,675 Liabilities Non-current liabilities Derivative financial instruments $ (623,684) $ (1,177,801) Current liabilities Derivative financial instruments (45,836) (293,840) Total liabilities $ (669,520) $ (1,471,641) Net assets (liabilities): Net assets (liabilities) - non-current Other non-current assets (liabilities) $ (599,283) $ (1,163,865) Net assets (liabilities) - current Other current assets (liabilities) 41,823 (266,101) Total net assets (liabilities) $ (557,460) $ (1,429,966) |
Summary of Effect of Netting, Assets | The following presents the impact of this presentation on the Group’s recognized assets and liabilities as of the periods indicated: December 31, 2023 Presented without Effects of Netting Effects of Netting As Presented with Effects of Netting Non-current assets $ 103,008 $ (78,607) $ 24,401 Current assets 198,806 (111,147) 87,659 Total assets $ 301,814 $ (189,754) $ 112,060 Non-current liabilities (678,053) 54,369 (623,684) Current liabilities (181,221) 135,385 (45,836) Total liabilities $ (859,274) $ 189,754 $ (669,520) Total net assets (liabilities) $ (557,460) $ — $ (557,460) December 31, 2022 Presented without Effects of Netting Effects of Netting As Presented with Effects of Netting Non-current assets $ 101,275 $ (87,339) $ 13,936 Current assets 92,611 (64,872) 27,739 Total assets $ 193,886 $ (152,211) $ 41,675 Non-current liabilities (1,261,369) 83,568 (1,177,801) Current liabilities (362,483) 68,643 (293,840) Total liabilities $ (1,623,852) $ 152,211 $ (1,471,641) Total net assets (liabilities) $ (1,429,966) $ — $ (1,429,966) |
Summary of Effect of Netting, Liabilities | The following presents the impact of this presentation on the Group’s recognized assets and liabilities as of the periods indicated: December 31, 2023 Presented without Effects of Netting Effects of Netting As Presented with Effects of Netting Non-current assets $ 103,008 $ (78,607) $ 24,401 Current assets 198,806 (111,147) 87,659 Total assets $ 301,814 $ (189,754) $ 112,060 Non-current liabilities (678,053) 54,369 (623,684) Current liabilities (181,221) 135,385 (45,836) Total liabilities $ (859,274) $ 189,754 $ (669,520) Total net assets (liabilities) $ (557,460) $ — $ (557,460) December 31, 2022 Presented without Effects of Netting Effects of Netting As Presented with Effects of Netting Non-current assets $ 101,275 $ (87,339) $ 13,936 Current assets 92,611 (64,872) 27,739 Total assets $ 193,886 $ (152,211) $ 41,675 Non-current liabilities (1,261,369) 83,568 (1,177,801) Current liabilities (362,483) 68,643 (293,840) Total liabilities $ (1,623,852) $ 152,211 $ (1,471,641) Total net assets (liabilities) $ (1,429,966) $ — $ (1,429,966) |
Summary of Gain (Loss) on Derivative Financial Instruments | The Group recorded the following gain (loss) on derivative financial instruments in the Consolidated Statement of Comprehensive Income for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Net gain (loss) on commodity derivatives settlements (a) $ 178,064 $ (895,802) $ (320,656) Net gain (loss) on interest rate swaps (a) (2,722) (1,434) (530) Gain (loss) on foreign currency hedges (a) (521) — (1,227) Total gain (loss) on settled derivative instruments $ 174,821 $ (897,236) $ (322,413) Gain (loss) on fair value adjustments of unsettled financial instruments (b) 905,695 (861,457) (652,465) Total gain (loss) on derivative financial instruments $ 1,080,516 $ (1,758,693) $ (974,878) (a) Represents the cash settlement of hedges that settled during the period. (b) Represents the change in fair value of financial instruments net of removing the carrying value of hedges that settled during the period. |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets1 [Abstract] | |
Summary of Other Asset | The following table includes details of other assets as of the periods presented: December 31, 2023 December 31, 2022 Other non-current assets Other non-current assets (a) $ 9,172 $ 4,351 Total other non-current assets $ 9,172 $ 4,351 Other current assets Prepaid expenses $ 3,955 $ 5,255 Inventory 7,829 9,227 Total other current assets $ 11,784 $ 14,482 (a) Includes the Group’s investment in DP Lion Equity Holdco LLC of $7,500 as of December 31, 2023 . Refer to Notes 5 and 21 for additional information regarding the DP Lion Equity Holdco LLC equity sale. |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share Capital, Reserves, And Other Equity Interest [Abstract] | |
Summary of Share Capital, Net of Customary Transaction Costs | The following tables summarize the Group's share capital, net of customary transaction costs, for the periods presented: Number of Shares Total Share Capital Total Share Premium Balance as of December 31, 2020 35,369 $ 9,520 $ 841,159 Issuance of share capital (equity placement) 7,077 2,044 211,800 Issuance of share capital (equity compensation) 37 7 — Balance as of December 31, 2021 42,483 $ 11,571 $ 1,052,959 Issuance of share capital (settlement of warrants) 26 5 — Issuance of share capital (equity compensation) 40 7 — Issuance of EBT shares (equity compensation) 88 — — Repurchase of shares (EBT) (790) — — Repurchase of shares (share buyback program) (400) (80) — Balance as of December 31, 2022 41,447 $ 11,503 $ 1,052,959 Issuance of share capital (equity placement) 6,422 1,555 155,233 Issuance of EBT shares (equity compensation) 334 — — Repurchase of shares (share buyback program) (647) (161) — Balance as of December 31, 2023 47,556 12,897 1,208,192 |
NON-CASH SHARE-BASED COMPENSA_2
NON-CASH SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Arrangements [Abstract] | |
Schedule of Options Award Activity | Options Awards The following table summarizes Options award activity for the respective periods presented: Number of Options (a) Weighted Average Grant Date Fair Value per Share Balance as of December 31, 2020 1,151 $ 8.50 Granted — — Exercised (b) (41) 6.60 Forfeited (15) 11.80 Balance as of December 31, 2021 1,095 $ 8.53 Granted — — Exercised (b) (399) 6.60 Forfeited (320) 11.30 Balance as of December 31, 2022 376 $ 8.21 Granted — — Exercised (b) (2) 6.60 Forfeited (153) 8.25 Balance as of December 31, 2023 221 $ 8.20 (a) As of December 31, 2023 , 2022 and 2021 , 162 , 19 and 202 Options were exercisable, respectively. As of December 31, 2023 all remaining Options outstanding have an exercise price ranging from £16.80 to £24.00 and a weighted average remaining contractual life of 4.6 years . (b) The weighted average exercise date share price was $24.29 , $32.35 and $34.80 for Options exercised during 2023 , 2022 and 2021 , respectively. |
Schedule of RSU and PSU Awards Activity | The following table summarizes RSU equity award activity for the respective periods presented: Number of Shares Weighted Average Grant Date Fair Value per Share Balance as of December 31, 2020 172 $ 23.76 Granted 77 31.72 Vested (38) 23.27 Forfeited (4) 26.38 Balance as of December 31, 2021 207 $ 26.76 Granted 199 27.70 Vested (64) 25.92 Forfeited (4) 27.24 Balance as of December 31, 2022 338 $ 27.47 Granted 253 22.35 Vested (181) 23.08 Forfeited (102) 27.54 Balance as of December 31, 2023 308 $ 25.82 The following table summarizes PSU equity award activity for the respective periods presented: Number of Shares Weighted Average Grant Date Fair Value per Share Balance as of December 31, 2020 221 $ 25.15 Granted 124 21.64 Vested — — Forfeited (4) 23.06 Balance as of December 31, 2021 341 $ 23.90 Granted 232 28.04 Vested — — Forfeited (4) 26.07 Balance as of December 31, 2022 569 $ 25.57 Granted 349 16.66 Vested (216) 23.85 Forfeited (90) 20.30 Balance as of December 31, 2023 612 $ 21.87 |
Schedule of Valuation Inputs | The inputs to the Monte Carlo model included the following for PSUs granted during the respective periods presented: December 31, 2023 December 31, 2022 December 31, 2021 Risk-free rate of interest 3.3% 1.3% 0.2% Volatility (a) 31% 37% 35% Correlation with comparator group range 0.01 - 0.30 0.01 - 0.36 0.02 - 0.36 (a) Volatility utilizes the historical volatility for the Group’s share price. |
Schedule of Share-based Compensation Expense | The following table presents the share-based compensation expense for the respective periods presented: December 31, 2023 December 31, 2022 December 31, 2021 Options $ 292 $ (749) $ 2,115 RSUs 2,833 4,210 2,346 PSUs 3,335 4,590 2,939 ESPP 34 — — Total share-based compensation expense $ 6,494 $ 8,051 $ 7,400 |
DIVIDENDS (Tables)
DIVIDENDS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Dividends1 [Abstract] | |
Summary of Dividends Declared and Paid | The following table summarizes the Group's dividends declared and paid on the dates indicated: Dividend per Share Record Date Pay Date Shares Outstanding Gross Dividends Paid Date Dividends Declared USD GBP November 14, 2022 $ 0.8750 £ 0.7220 March 3, 2023 March 28, 2023 47,869 $ 41,885 March 21, 2023 $ 0.8750 £ 0.6860 May 26, 2023 June 30, 2023 48,165 42,144 May 9, 2023 $ 0.8750 £ 0.7040 September 1, 2023 September 29, 2023 48,157 42,137 September 1, 2023 $ 0.8750 £ 0.6840 December 1, 2023 December 29, 2023 47,857 41,875 Paid during the year ended December 31, 2023 $ 168,041 October 28, 2021 $ 0.8500 £ 0.6500 March 4, 2022 March 28, 2022 42,502 $ 36,127 March 22, 2022 $ 0.8500 £ 0.6860 May 27, 2022 June 30, 2022 42,527 36,148 May 16, 2022 $ 0.8500 £ 0.7320 September 2, 2022 September 26, 2022 42,294 35,950 August 8, 2022 $ 0.8500 £ 0.6900 November 25, 2022 December 28, 2022 41,447 35,230 Paid during the year ended December 31, 2022 $ 143,455 October 29, 2020 $ 0.8000 £ 0.5700 March 5, 2021 March 26, 2021 35,376 $ 28,301 March 8, 2021 $ 0.8000 £ 0.5620 May 28, 2021 June 24, 2021 42,472 33,970 April 30, 2021 $ 0.8000 £ 0.5760 September 3, 2021 September 24, 2021 42,480 33,984 August 5, 2021 $ 0.8000 £ 0.5980 November 26, 2021 December 17, 2021 42,480 33,984 Paid during the year ended December 31, 2021 $ 130,239 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | |
Schedule of Provision for Asset Retirement Obligations | The composition of the provision for asset retirement obligations at the reporting date was as follows for the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Balance at beginning of period $ 457,083 $ 525,589 $ 346,124 Additions (a) 3,250 24,395 96,292 Accretion 26,926 27,569 24,396 Asset retirement costs (5,961) (4,889) (2,879) Disposals (b) (17,300) (16,779) (16,500) Revisions to estimate (c) 42,650 (98,802) 78,156 Balance at end of period $ 506,648 $ 457,083 $ 525,589 Less: Current asset retirement obligations 5,402 4,529 3,399 Non-current asset retirement obligations $ 501,246 $ 452,554 $ 522,190 (a) Refer to Note 5 for additional information regarding acquisitions and divestitures. (b) Associated with the divestiture of natural gas and oil properties. Refer to Note 10 for additional information. (c) As of December 31, 2023 , we performed normal revisions to our asset retirement obligations, which resulted in a $42,650 increase in the liability. This increase was comprised of a $27,830 increase attributable to a lower discount rate as a result of slightly decreased bond yields as compared to 2022 as inflation began to increase at a lower rate and a $16,059 increase for cost revisions based on our recent asset retirement experiences. Partially offsetting this increase was a $1,239 change attributed to retirement timing. As of December 31, 2022 , the Group performed normal revisions to its asset retirement obligations, which resulted in a $98,802 decrease in the liability. This decrease was comprised of a $144,656 decrease attributable to a higher discount rate. The higher discount rate was a result of macroeconomic factors spurred by the increase in bond yields which have elevated with U.S. treasuries to combat the current inflationary environment. Partially offsetting this decrease was $29,357 in cost revisions based on the Group’s recent asset retirement experiences and a $16,497 timing revision for the acceleration of the Group’s retirement plans made possible by asset retirement acquisitions that improved the Group’s asset retirement capacity through the growth of its operational capabilities. As of December 31, 2021 , the Group performed normal revisions to its asset retirement obligations, which resulted in a $78,156 increase in the liability. This increase was comprised of a $109,306 increase attributable to the lower discount rate which was then offset by a $27,038 decrease for cost revisions based on our recent asset retirement experiences. The remaining change was attributable to timing. The lower discount rate was a result of macroeconomic factors spurred by the COVID-19 recovery, which reduced bond yields and increased inflation. Cost reductions are a result of our recent asset retirement |
Schedule of Impact of Reasonably Possible 10% Change in Assumptions | A reasonably possible change in assumptions could have the following impact on the Group’s asset retirement obligations as of December 31, 2023 : ARO Sensitivity Scenario 1 (a) Scenario 2 (b) Discount rate $ (164,357) $ 817,004 Timing 31,339 (34,235) Cost 50,580 (50,580) (a) Scenario 1 assumes an increase of the BBB 15 year discount rate to approximately 7% (which is one of the highest rates observed since 2020), a 10% increase in cost and a 10% increase in timing by assuming the addition of one plugging rig, which would accelerate retirement plans. All of these scenarios have been either historically observed or are considered reasonably possible. (b) Scenario 2 assumes a decrease of the BBB 15 year discount rate to approximately 3% (which is one of the lowest rates observed since 2020), a 10% decrease in cost and a 10% decrease in timing by assuming the loss of one plugging rig, which would delay retirement plans. All of these scenarios have been either historically observed or are considered reasonably possible. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases1 [Abstract] | |
Disclosure Of Quantitative Information About Lease Liabilities | The Group leased automobiles, equipment and real estate for the periods presented below. A reconciliation of leases arising from financing activities and the balance sheet classification of future minimum lease payments as of the reporting periods presented were as follows: Present Value of Minimum Lease Payments December 31, 2023 December 31, 2022 December 31, 2021 Balance at beginning of period $ 28,862 $ 27,804 $ 18,878 Additions (a) 14,430 11,269 16,482 Interest expense (b) 1,661 1,022 1,050 Cash outflows (13,831) (11,233) (8,606) Balance at end of period $ 31,122 $ 28,862 $ 27,804 Classified as: Current liability $ 10,563 $ 9,293 $ 9,627 Non-current liability 20,559 19,569 18,177 Total $ 31,122 $ 28,862 $ 27,804 (a) The $14,430 and $11,269 in lease additions during the year s ended December 31, 2023 and December 31, 2022 , respectively, was primarily attributable to the expansion of the Group’s fleet due to continued growth. Of the $16,482 in lease additions during the year ended December 31, 2021 , $8,062 was attributable to the Indigo, Blackbeard and Tapstone acquisitions. Refer to Note 5 for additional information regarding acquisitions. (b) Included as a component of finance cost. |
Schedule of Right-of-use Assets | Set out below is the movement in the right-of-use assets: Right-of-Use Assets December 31, 2023 December 31, 2022 December 31, 2021 Balance at beginning of period $ 27,959 $ 26,908 $ 18,026 Additions (a) 13,279 11,295 16,554 Depreciation (11,224) (10,244) (7,672) Balance at end of period $ 30,014 $ 27,959 $ 26,908 Classified as: Motor vehicles $ 25,592 $ 23,782 $ 19,149 Midstream 3,136 3,801 6,502 Buildings and leasehold improvements 1,286 376 1,257 Total $ 30,014 $ 27,959 $ 26,908 (a) The $13,279 and $11,295 in lease additions during the year s ended December 31, 2023 and December 31, 2022 , respectively, was attributable to the expansion of the Group’s fleet due to continued growth. Of the $16,554 in lease additions during the year ended December 31, 2021 , $8,062 was attributable to the Indigo, Blackbeard and Tapstone acquisitions. Refer to Note 5 for additional information regarding acquisitions. |
Disclosure of Discount Rates Related to Leases | The range of discount rates applied in calculating right-of-use assets and related lease liabilities, depending on the lease term, is presented below: December 31, 2023 December 31, 2022 December 31, 2021 Discount rates range 1.8% - 7.1% 1.8% - 6.3% 1.8% - 3.3% |
Maturity Analysis of Lease Liabilities | The following table reflects the maturity of leases as of the periods presented: December 31, 2023 December 31, 2022 December 31, 2021 Not Later Than One Year $ 10,563 $ 9,293 $ 9,627 Later Than One Year and Not Later Than Five Years 20,559 19,569 18,177 Later Than Five Years — — — Total $ 31,122 $ 28,862 $ 27,804 The following table provides a reconciliation of the Group’s future maturities of its total borrowings as of the reporting date as follows: December 31, 2023 December 31, 2022 Not later than one year $ 200,822 $ 271,096 Later than one year and not later than five years 864,264 778,887 Later than five years 259,762 448,183 Total borrowings $ 1,324,848 $ 1,498,166 The amounts disclosed in the following table are the contractual cash flows. Not Later Than One Year Later Than One Year and Not Later Than Five Years Later Than Five Years Total For the year ended December 31, 2023 Trade and other payables $ 53,490 $ — $ — $ 53,490 Borrowings 200,822 864,264 259,762 1,324,848 Leases 12,358 22,531 — 34,889 Other liabilities (a) 178,779 2,224 — 181,003 Total $ 445,449 $ 889,019 $ 259,762 $ 1,594,230 For the year ended December 31, 2022 Trade and other payables $ 93,764 $ — $ — $ 93,764 Borrowings 271,096 778,887 448,183 1,498,166 Leases 10,925 21,523 — 32,448 Other liabilities (a) 326,302 5,375 — 331,677 Total $ 702,087 $ 805,785 $ 448,183 $ 1,956,055 (a) |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of Borrowings | The Group’s borrowings consist of the following amounts as of the reporting date: December 31, 2023 December 31, 2022 Credit Facility (Interest rate of 8.66% and 7.42% , respectively) (a) $ 159,000 $ 56,000 ABS I Notes (Interest rate of 5.00% ) 100,898 125,864 ABS II Notes (Interest rate of 5.25% ) 125,922 147,458 ABS III Notes (Interest rate of 4.875% ) 274,710 319,856 ABS IV Notes (Interest rate of 4.95% ) 99,951 130,144 ABS V Notes (Interest rate of 5.78% ) 290,913 378,796 ABS VI Notes (Interest rate of 7.50% ) 159,357 212,446 Term Loan I (Interest rate of 6.50% ) 106,470 120,518 Miscellaneous, primarily for real estate, vehicles and equipment 7,627 7,084 Total borrowings $ 1,324,848 $ 1,498,166 Less: Current portion of long-term debt (200,822) (271,096) Less: Deferred financing costs (41,123) (48,256) Less: Original issue discounts (7,098) (9,581) Total non-current borrowings, net $ 1,075,805 $ 1,169,233 (a) Represents the variable interest rate as of period end. Reconciliation of borrowings arising from financing activities: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Balance at beginning of period $ 1,440,329 $ 1,010,355 $ 717,240 Acquired as part of a business combination — 2,437 3,801 Sale of equity interest (154,966) — — Proceeds from borrowings 1,537,230 2,587,554 1,727,745 Repayments of borrowings (1,547,912) (2,139,686) (1,436,367) Costs incurred to secure financing (13,776) (34,234) (10,255) Amortization of discount and deferred financing costs 16,358 13,903 8,191 Cash paid for interest (116,784) (83,958) (42,673) Finance costs and other 116,148 83,958 42,673 Balance at end of period $ 1,276,627 $ 1,440,329 $ 1,010,355 |
Schedule of Maturity of Borrowings | The following table reflects the maturity of leases as of the periods presented: December 31, 2023 December 31, 2022 December 31, 2021 Not Later Than One Year $ 10,563 $ 9,293 $ 9,627 Later Than One Year and Not Later Than Five Years 20,559 19,569 18,177 Later Than Five Years — — — Total $ 31,122 $ 28,862 $ 27,804 The following table provides a reconciliation of the Group’s future maturities of its total borrowings as of the reporting date as follows: December 31, 2023 December 31, 2022 Not later than one year $ 200,822 $ 271,096 Later than one year and not later than five years 864,264 778,887 Later than five years 259,762 448,183 Total borrowings $ 1,324,848 $ 1,498,166 The amounts disclosed in the following table are the contractual cash flows. Not Later Than One Year Later Than One Year and Not Later Than Five Years Later Than Five Years Total For the year ended December 31, 2023 Trade and other payables $ 53,490 $ — $ — $ 53,490 Borrowings 200,822 864,264 259,762 1,324,848 Leases 12,358 22,531 — 34,889 Other liabilities (a) 178,779 2,224 — 181,003 Total $ 445,449 $ 889,019 $ 259,762 $ 1,594,230 For the year ended December 31, 2022 Trade and other payables $ 93,764 $ — $ — $ 93,764 Borrowings 271,096 778,887 448,183 1,498,166 Leases 10,925 21,523 — 32,448 Other liabilities (a) 326,302 5,375 — 331,677 Total $ 702,087 $ 805,785 $ 448,183 $ 1,956,055 (a) |
Schedule of Finance Costs | The following table represents the Group’s finance costs for each of the periods presented: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Interest expense, net of capitalized and income amounts (a) $ 117,808 $ 86,840 $ 42,370 Amortization of discount and deferred finance costs 16,358 13,903 8,191 Other — 56 67 Total finance costs $ 134,166 $ 100,799 $ 50,628 (a) Includes payments related to borrowings and leases. |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE AND OTHER PAYABLES | The following table includes a detail of trade and other payables. The fair value approximates the carrying value as of the periods presented: December 31, 2023 December 31, 2022 Trade payables $ 49,487 $ 90,437 Other payables 4,003 3,327 Total trade and other payables $ 53,490 $ 93,764 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities1 [Abstract] | |
Summary of Other Liabilities | The following table includes details of other liabilities as of the periods presented: December 31, 2023 December 31, 2022 Other non-current liabilities Other non-current liabilities $ 2,224 $ 5,375 Total other non-current liabilities $ 2,224 $ 5,375 Other current liabilities Accrued expenses (a) $ 99,723 $ 140,058 Net revenue clearing (b) 79,056 186,244 Asset retirement obligations - current 5,402 4,529 Revenue to be distributed (c) 93,322 90,899 Total other current liabilities $ 277,503 $ 421,730 (a) As of December 31, 2023 accrued expenses decreased primarily due to a $50,541 decrease in hedge settlements payables, resulting from lower commodity prices throughout 2023. As of December 31, 2022 accrued expenses primarily consisted of $61,896 for hedge settlements payables, $21,372 for accrued post production expense, $15,127 in accrued payroll and bonus and $10,832 for accrued lease operating expense . The remaining balance consisted of accrued capital projects and operating expenses. Refer to the Financial Review for more information on year-over-year changes in other liabilities and their fixed and variable nature. (b) Net revenue clearing is estimated revenue that is payable to third-party working interest owners. The year-over-year decrease , similar to commodity receivables, was a result of lower commodity prices year-over-year. (c) Revenue to be distributed is revenue that is payable to third-party working interest owners, but has yet to be paid due to title, legal, ownership or other issues. The Group releases the underlying liability as the aforementioned issues become resolved. As the timing of resolution is unknown, the Group records the balance as a current liability. Revenue to be distributed increased year-over-year as a result of the Group’s growth. |
FAIR VALUE AND FINANCIAL INST_2
FAIR VALUE AND FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value and Financial Instruments [Abstract] | |
Summary of Financial Assets | The following table includes the Group's financial instruments as of the periods presented: December 31, 2023 December 31, 2022 Cash and cash equivalents $ 3,753 $ 7,329 Trade receivables and accrued income 190,207 296,781 Other non-current assets 9,172 4,351 Other non-current liabilities (a) (1,946) (1,669) Other current liabilities (b) (272,101) (417,201) Derivative financial instruments at fair value (557,460) (1,429,966) Leases (31,122) (28,862) Borrowings (1,324,848) (1,498,166) Total $ (1,984,345) $ (3,067,403) (a) Excludes the long-term portion of the value associated with the upfront promote received from Oaktree. (b) Includes accrued expenses, net revenue clearing and revenue to be distributed. Excludes taxes payable and asset retirement obligations. |
Summary of Financial Liabilities | The following table includes the Group's financial instruments as of the periods presented: December 31, 2023 December 31, 2022 Cash and cash equivalents $ 3,753 $ 7,329 Trade receivables and accrued income 190,207 296,781 Other non-current assets 9,172 4,351 Other non-current liabilities (a) (1,946) (1,669) Other current liabilities (b) (272,101) (417,201) Derivative financial instruments at fair value (557,460) (1,429,966) Leases (31,122) (28,862) Borrowings (1,324,848) (1,498,166) Total $ (1,984,345) $ (3,067,403) (a) Excludes the long-term portion of the value associated with the upfront promote received from Oaktree. (b) Includes accrued expenses, net revenue clearing and revenue to be distributed. Excludes taxes payable and asset retirement obligations. |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Financial Risk Management [Abstract] | |
Schedule of Borrowings | The Group’s borrowings primarily consist of fixed-rate amortizing notes and its variable rate Credit Facility as illustrated below. December 31, 2023 December 31, 2022 Borrowings Interest Rate (a) Borrowings Interest Rate (a) ABS Notes and Term Loan I $ 1,158,221 5.67 % $ 1,435,082 5.70 % Credit Facility $ 159,000 8.66 % $ 56,000 7.42 % (a) The interest rate on the ABS Notes and Term Loan I borrowings represents the weighted average fixed-rate of the notes while the interest rate presented for the Credit Facility represents the floating rate as of December 31, 2023 and 2022 , respectively. During the year ended December 31, 2022, the Credit Facility transitioned from LIBOR to SOFR during the regular redetermination in late Spring 2022. The Group did not experience a material impact from the transition. |
Schedule of Impact of a 100 Basis Point Adjustment in the Borrowing Rate and the Impact on Finance Costs | The table below represents the impact of a 100 basis point adjustment in the borrowing rate for the Credit Facility and the corresponding impact on finance costs. This represents a reasonably possible change in interest rate risk. Credit Facility Interest Rate Sensitivity December 31, 2023 December 31, 2022 +100 Basis Points $ 1,590 $ 560 -100 Basis Points $ (1,590) $ (560) |
Schedule of Contractual Cash Flows for Financial Obligations | The following table reflects the maturity of leases as of the periods presented: December 31, 2023 December 31, 2022 December 31, 2021 Not Later Than One Year $ 10,563 $ 9,293 $ 9,627 Later Than One Year and Not Later Than Five Years 20,559 19,569 18,177 Later Than Five Years — — — Total $ 31,122 $ 28,862 $ 27,804 The following table provides a reconciliation of the Group’s future maturities of its total borrowings as of the reporting date as follows: December 31, 2023 December 31, 2022 Not later than one year $ 200,822 $ 271,096 Later than one year and not later than five years 864,264 778,887 Later than five years 259,762 448,183 Total borrowings $ 1,324,848 $ 1,498,166 The amounts disclosed in the following table are the contractual cash flows. Not Later Than One Year Later Than One Year and Not Later Than Five Years Later Than Five Years Total For the year ended December 31, 2023 Trade and other payables $ 53,490 $ — $ — $ 53,490 Borrowings 200,822 864,264 259,762 1,324,848 Leases 12,358 22,531 — 34,889 Other liabilities (a) 178,779 2,224 — 181,003 Total $ 445,449 $ 889,019 $ 259,762 $ 1,594,230 For the year ended December 31, 2022 Trade and other payables $ 93,764 $ — $ — $ 93,764 Borrowings 271,096 778,887 448,183 1,498,166 Leases 10,925 21,523 — 32,448 Other liabilities (a) 326,302 5,375 — 331,677 Total $ 702,087 $ 805,785 $ 448,183 $ 1,956,055 (a) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of contingent liabilities [abstract] | |
Oil and Gas, Delivery Commitment | The following table summarizes our total gross commitments, compiled using best estimates based on our sales strategy, as of December 31, 2023 . Natural gas (MMcf) 2024 70,769 2025 16,658 2026 — Thereafter 360,114 |
BASIS OF PREPARATION (Details)
BASIS OF PREPARATION (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Financial impact of current hedging contract, next fiscal year (as a percent) | 83% | |||
Financial impact of current hedging contracts, year two (as a percent) | 76% | |||
Taxes payable | $ 50,226 | $ 50,226 | ||
Chesapeake Granite Wash Trust | Diversified Production LLC | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Proportion of ownership interest in subsidiary (as a percent) | 50.80% | |||
Sooner State Joint ABS Holdings LLC | Diversified Production LLC | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Proportion of ownership interest in subsidiary (as a percent) | 51.25% | |||
DP Lion Equity Holdco LLC | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Proportion of ownership interest in subsidiary (as a percent) | 20% | |||
Percentage of equity ownership divested | 80% | 80% | ||
DP Lion HoldCo LLC | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Percentage of equity ownership divested | 80% | 80% | ||
Giant Land, LLC | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Proportion of ownership interest in subsidiary (as a percent) | 55% | |||
Link Land LLC | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Proportion of ownership interest in subsidiary (as a percent) | 55% | |||
Old Faithful Land LLC | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Proportion of ownership interest in subsidiary (as a percent) | 55% | |||
Riverside Land LLC | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Proportion of ownership interest in subsidiary (as a percent) | 55% | |||
Splendid Land LLC | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Proportion of ownership interest in subsidiary (as a percent) | 55% | |||
Change in Presentation, Reclassification, Adjustment | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Taxes payable | $ 41,907 | |||
Cash Paid For Interest | $ 1,022 | $ 1,050 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 1 Months Ended | ||||
Oct. 31, 2020 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Guarantor and Issuer, Guaranteed Security [Line Items] | |||||
Cash and cash equivalents | $ 3,753,000 | $ 7,329,000 | $ 12,558,000 | $ 1,379,000 | |
Allowance for doubtful accounts | $ 16,529,000 | $ 8,941,000 | |||
Participation Agreement | |||||
Guarantor and Issuer, Guaranteed Security [Line Items] | |||||
Collaborative agreement period | 3 years | ||||
Collaborative agreement funding commitment | $ 1,000,000,000 | ||||
Collaborative agreement minimum value of acquisition to be made | $ 250,000,000 | ||||
Percentage of purchase price to be paid | 0.50 | ||||
Collaborative agreement, unlevered rate of return condition met, proportion of working interests in acquiree | 59.625% | ||||
Participation Agreement | Oaktree | |||||
Guarantor and Issuer, Guaranteed Security [Line Items] | |||||
Collaborative agreement, percentage of unlevered internal rate of return to be achieved | 0.10 | ||||
Participation Agreement, Tranche One | |||||
Guarantor and Issuer, Guaranteed Security [Line Items] | |||||
Collaborative agreement proportion of working interests in acquiree | 51.25% | ||||
Collaborative agreement funding of joint acquisitions, period | 18 months | ||||
Participation Agreement, Tranche One | Oaktree | |||||
Guarantor and Issuer, Guaranteed Security [Line Items] | |||||
Collaborative agreement proportion of working interests in acquiree | 48.75% | ||||
Participation Agreement, Tranche Two | |||||
Guarantor and Issuer, Guaranteed Security [Line Items] | |||||
Collaborative agreement proportion of working interests in acquiree | 52.50% | ||||
Collaborative agreement funding of joint acquisitions, period | 18 months | ||||
Participation Agreement, Tranche Two | Oaktree | |||||
Guarantor and Issuer, Guaranteed Security [Line Items] | |||||
Collaborative agreement proportion of working interests in acquiree | 47.50% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Significant Accounting Policies [Abstract] | ||
Cash restricted by asset-backed securitizations | $ 35,870 | $ 54,552 |
Other restricted cash | 382 | 836 |
Current asset | 11,195 | 7,891 |
Non-current asset | 25,057 | 47,497 |
Total restricted cash | $ 36,252 | $ 55,388 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Amortizes Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Software | Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
Software | Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 5 years |
Other Acquired Intangibles | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Property, Plant and Equipment are Generally Depreciated on a Straight-line Basis (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Buildings and leasehold improvements | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 10 years |
Buildings and leasehold improvements | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 40 years |
Equipment | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 5 years |
Equipment | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 10 years |
Motor vehicles | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 5 years |
Midstream assets | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 10 years |
Midstream assets | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 15 years |
Other property and equipment | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 5 years |
Other property and equipment | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 10 years |
SIGNIFICANT ACCOUNTING JUDGME_3
SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 field | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, number of unrecoverable fieds | 2 |
SIGNIFICANT ACCOUNTING JUDGME_4
SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES - Schedule of Changes in Assumptions Impact on Impairment Analysis (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Sensitivity Analysis, Scenario 1 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Headroom/(impairment), impact from pricing | $ (473,510,000) |
Headroom/(impairment), impact from discount rate | $ 1,253,634,000 |
Discount rate used in estimate the value of acquisition | 950% |
Sensitivity Analysis, Scenario 2 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Headroom/(impairment), impact from pricing | $ 7,532,007,000 |
Headroom/(impairment), impact from discount rate | $ 627,047,000 |
Discount rate used in estimate the value of acquisition | 1,350% |
One Field | Sensitivity Analysis, Scenario 1 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Headroom/(impairment), impact from discount rate | $ (7,265,000) |
Two Fields | Sensitivity Analysis, Scenario 2 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Headroom/(impairment), impact from discount rate | (134,459,000) |
Natural Gas (MMcf) | Sensitivity Analysis, Scenario 1 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Sensitivity analysis for impairment, commodity base price | 2.04 |
Natural Gas (MMcf) | Sensitivity Analysis, Scenario 2 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Sensitivity analysis for impairment, commodity base price | 6.42 |
Oil (MBbls) | Sensitivity Analysis, Scenario 1 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Sensitivity analysis for impairment, commodity base price | 39.23 |
Oil (MBbls) | Sensitivity Analysis, Scenario 2 | |
Disclosure of financial instruments by type of interest rate [line items] | |
Sensitivity analysis for impairment, commodity base price | $ 94.79 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - 2023 Acquisition - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||||
Revenue | $ 868,263 | $ 1,919,349 | $ 1,007,561 | |
TANOS | ||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||||
Asset acquisition, consideration paid | $ 262,329 | |||
Transaction costs | 936 | |||
Revenue | $ 45,589 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - 2023 Acquisition (Details) - TANOS $ in Thousands | Mar. 01, 2023 USD ($) |
Consideration paid | |
Cash consideration | $ 262,329 |
Total consideration | 262,329 |
Net assets acquired | |
Natural gas and oil properties | 263,056 |
Asset retirement obligations, asset portion | 3,250 |
Property, plant and equipment | 234 |
Derivative financial instruments, net | 7,449 |
Other receivables | 1,729 |
Asset retirement obligations, liability portion | (3,250) |
Other current liabilities | (10,139) |
Net assets acquired | $ 262,329 |
ACQUISITIONS AND DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES - 2023 Divestitures - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2023 | Jul. 17, 2023 | Jun. 27, 2023 | Jul. 09, 2021 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2023 | |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||
Gain (loss) on sale of equity interest | $ 18,440 | $ 0 | $ 0 | ||||||
Gains (losses) on financial assets at fair value through profit or loss | 4,610 | 0 | 0 | ||||||
Consideration paid (received) | $ (66,168) | ||||||||
Gain (loss) on natural gas and oil properties and equipment | 24,146 | $ 2,379 | $ (901) | ||||||
Equity investments [member] | |||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||
Gains (losses) on financial assets at fair value through profit or loss | (4,610) | ||||||||
DP Lion Equity Holdco LLC | |||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||
Gain (loss) on sale of equity interest | $ 18,440 | ||||||||
Consideration paid (received) | $ 30,000 | ||||||||
Undeveloped Acreage in Oklahoma | |||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||
Consideration paid (received) | $ (16,060) | ||||||||
Gain (loss) on natural gas and oil properties and equipment | $ 13,619 | ||||||||
Certain Non-Core , Non-Operated Assets Within Central Region | |||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||
Consideration paid (received) | $ (37,589) | ||||||||
Certain Other Non-Core Undeveloped Acreage | |||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||
Consideration paid (received) | (12,100) | ||||||||
Gain (loss) on natural gas and oil properties and equipment | $ 10,547 | ||||||||
ABS VII Class A Notes | |||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||
Notional amount | $ 142,000 | ||||||||
ABS VII Class B Notes | |||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||
Notional amount | $ 20,000 | ||||||||
DP Lion Equity Holdco LLC | |||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||
Percentage of equity ownership divested | 80% | 80% | 80% | ||||||
Proceeds from divesture of business | $ 30,000 | ||||||||
Proportion of ownership interest in subsidiary (as a percent) | 20% |
ACQUISITIONS AND DIVESTITURES_4
ACQUISITIONS AND DIVESTITURES - Schedule of 2023 Divestitures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Jul. 09, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consideration received | |||||
Proceeds from divestitures | $ 95,749 | $ 0 | $ 86,224 | ||
Total consideration | $ 66,168 | ||||
Net assets divested | |||||
Natural gas and oil properties | $ (2,490,375) | (2,490,375) | (2,555,808) | ||
Restricted cash | (36,252) | (36,252) | (55,388) | ||
Derivative financial instruments, net | (112,060) | (112,060) | (41,675) | ||
Total non-current borrowings, net | 1,075,805 | 1,075,805 | 1,169,233 | ||
Gain (loss) on sale of equity interest | (18,440) | $ 0 | $ 0 | ||
DP Lion Equity Holdco LLC | |||||
Consideration received | |||||
Proceeds from divestitures | (30,000) | ||||
Total consideration | (30,000) | ||||
Net assets divested | |||||
Natural gas and oil properties | (142,891) | (142,891) | |||
Restricted cash | (7,345) | (7,345) | |||
Derivative financial instruments, net | (20,328) | (20,328) | |||
Other assets | (8,140) | (8,140) | |||
Total non-current borrowings, net | 154,966 | 154,966 | |||
Other liabilities | 9,288 | 9,288 | |||
Net assets divested | (14,450) | $ (14,450) | |||
Cost basis of investment retained | 2,890 | ||||
Gain (loss) on sale of equity interest | $ (18,440) |
ACQUISITIONS AND DIVESTITURES_5
ACQUISITIONS AND DIVESTITURES - CONOCOPHILLIPS ASSET ACQUISITION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 27, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||||
Revenue | $ 868,263 | $ 1,919,349 | $ 1,007,561 | |
CONOCOPHILLIPS ASSET ACQUISITION | ||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||||
Asset acquisition, consideration paid | $ 209,766 | |||
Revenue | $ 25,217 |
ACQUISITIONS AND DIVESTITURES_6
ACQUISITIONS AND DIVESTITURES - EAST TEXAS ASSET ACQUISITION (Details) - EAST TEXAS ASSET ACQUISITION $ in Thousands | Apr. 25, 2022 USD ($) |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |
Collaborative agreement proportion of working interests in acquiree | 52.50% |
Asset acquisition, consideration paid | $ 47,468 |
Transaction costs | $ 1,550 |
ACQUISITIONS AND DIVESTITURES_7
ACQUISITIONS AND DIVESTITURES - OTHER ACQUISITIONS (Details) $ in Thousands | 12 Months Ended | ||||
Nov. 21, 2022 USD ($) | Apr. 01, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) company | Dec. 31, 2021 USD ($) | |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||
Gain on bargain purchases | $ 0 | $ 4,447 | $ 58,072 | ||
Aggregated individually immaterial business combinations | |||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||
Number of asset retirement companies | company | 3 | ||||
Consideration transferred, acquisition-date fair value | $ 10,139 | $ 13,949 | |||
Deferred consideration recognised as of acquisition date | $ 3,150 | ||||
Business combination, payment of deferred consideration | $ 2,100 | ||||
Net assets acquired | 10,742 | ||||
Gain on bargain purchases | $ 603 | ||||
OTHER ACQUISITION | |||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||
Asset acquisition, consideration paid | $ 7,438 |
ACQUISITIONS AND DIVESTITURES_8
ACQUISITIONS AND DIVESTITURES - TAPSTONE ENERGY HOLDINGS LLC (“TAPSTONE”) BUSINESS COMBINATION (Details) $ in Thousands | 12 Months Ended | ||||||||||||||||||
Dec. 07, 2021 USD ($) well shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 29, 2023 shares | Dec. 05, 2023 shares | Sep. 29, 2023 shares | Jun. 30, 2023 shares | Mar. 28, 2023 shares | Dec. 28, 2022 shares | Sep. 26, 2022 shares | Jun. 30, 2022 shares | Apr. 25, 2022 | Mar. 28, 2022 shares | Dec. 31, 2021 shares | Dec. 17, 2021 shares | Sep. 24, 2021 shares | Jun. 24, 2021 shares | Mar. 26, 2021 shares | Dec. 31, 2020 shares | |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||||||||||||
Shares outstanding (in shares) | shares | 47,556,000 | 41,447,000 | 47,857,000 | 0.05 | 48,157,000 | 48,165,000 | 47,869,000 | 41,447,000 | 42,294,000 | 42,527,000 | 42,502,000 | 42,483,000 | 42,480,000 | 42,480,000 | 42,472,000 | 35,376,000 | 35,369,000 | ||
Natural gas and oil properties, net | $ 2,490,375 | $ 2,555,808 | |||||||||||||||||
Chesapeake Granite Wash Trust | |||||||||||||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||||||||||||
Shares outstanding (in shares) | shares | 46,750,000 | ||||||||||||||||||
TAPSTONE ENERGY HOLDINGS LLC (“TAPSTONE”) BUSINESS COMBINATION | |||||||||||||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||||||||||||
Collaborative agreement proportion of working interests in acquiree | 51.25% | ||||||||||||||||||
Number of wells in under development | well | 6 | ||||||||||||||||||
Consideration transferred, acquisition-date fair value | $ 177,496 | ||||||||||||||||||
Measurement period adjustments recognised for particular assets, liabilities, non-controlling interests or items of consideration | $ 3,853 | ||||||||||||||||||
Transaction costs | $ 4,039 | ||||||||||||||||||
TAPSTONE ENERGY HOLDINGS LLC (“TAPSTONE”) BUSINESS COMBINATION | Chesapeake Granite Wash Trust | |||||||||||||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||||||||||||
Proportion of ownership interest in subsidiary (as a percent) | 50.80% | ||||||||||||||||||
Natural gas and oil properties, net | $ 16,087 |
ACQUISITIONS AND DIVESTITURES_9
ACQUISITIONS AND DIVESTITURES - TANOS ENERGY HOLDINGS III, LLC (“TANOS”) BUSINESS COMBINATION (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Aug. 18, 2021 | Aug. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||
Payments for derivatives, investing activities | $ 0 | $ 0 | $ 56,466 | ||
TANOS | |||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||
Collaborative agreement proportion of working interests in acquiree | 51.25% | ||||
Consideration transferred, acquisition-date fair value | $ 116,061 | ||||
Transaction costs | $ 2,384 | ||||
Payments for derivatives, investing activities | $ 52,666 |
ACQUISITIONS AND DIVESTITURE_10
ACQUISITIONS AND DIVESTITURES - BLACKBEARD OPERATING LLC (“BLACKBEARD”) ASSET ACQUISITION (Details) - BLACKBEARD OPERATING LLC (“BLACKBEARD”) ASSET ACQUISITION $ in Thousands | Jul. 05, 2021 USD ($) |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |
Asset acquisition, consideration paid | $ 170,523 |
Transaction costs | $ 3,644 |
ACQUISITIONS AND DIVESTITURE_11
ACQUISITIONS AND DIVESTITURES - INDIGO ASSET ACQUISITION (Details) - INDIGO ASSET ACQUISITION $ in Thousands | May 19, 2021 USD ($) |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |
Asset acquisition, consideration paid | $ 117,352 |
Transaction costs | $ 473 |
ACQUISITIONS AND DIVESTITURE_12
ACQUISITIONS AND DIVESTITURES - INDIGO MINERALS LLC (“INDIGO”) DIVESTITURE (Details) $ in Thousands | 12 Months Ended | |||
Jul. 09, 2021 USD ($) $ / MMcfe | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||||
Consideration paid (received) | $ (66,168) | |||
Gain (loss) on sale of equity interest | $ 18,440 | $ 0 | $ 0 | |
INDIGO MINERALS LLC (“INDIGO”) DIVESTITURE | ||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||||
Percentage of equity ownership divested | 48.75% | |||
Consideration paid (received) | $ (52,314) | |||
Percentage of total consideration received | 50% | |||
Receives market price and pays a fixed weighted average swaps price | $ / MMcfe | 2.86 | |||
Loss on divestiture | $ 1,461 |
ACQUISITIONS AND DIVESTITURE_13
ACQUISITIONS AND DIVESTITURES - OTHER DIVESTITURES (Details) - USD ($) $ in Thousands | Dec. 23, 2021 | Jul. 09, 2021 |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||
Consideration paid (received) | $ (66,168) | |
Diversified Energy Company, PLC | ||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||
Proportion of ownership interest in joint venture | 51.25% | |
Net proceeds | $ (33,911) |
ACQUISITIONS AND DIVESTITURE_14
ACQUISITIONS AND DIVESTITURES - PRO FORMA INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Acquisitions And Divestitures [Abstract] | |||
Business combination, Proforma information Revenue | $ 883,347 | $ 2,010,927 | $ 1,249,983 |
Net income (loss) | $ 804,649 | $ (594,097) | $ (279,121) |
ACQUISITIONS AND DIVESTITURE_15
ACQUISITIONS AND DIVESTITURES - SUBSEQUENT EVENT (Details) $ in Thousands | Mar. 19, 2024 USD ($) |
Acquisition of porportional interest | |
Disclosure of non-adjusting events after reporting period [line items] | |
Payments to acquire interests in acquiree | $ 410,000 |
REVENUE - Summary of Reconciles
REVENUE - Summary of Reconciles the Group's Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 868,263 | $ 1,919,349 | $ 1,007,561 |
Commodity | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 802,399 | 1,873,011 | 973,107 |
Natural gas | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 557,167 | 1,544,658 | 818,726 |
NGLs | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 141,321 | 188,733 | 115,747 |
Oil | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 103,911 | 139,620 | 38,634 |
Midstream | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 30,565 | 32,798 | 31,988 |
Other | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 35,299 | $ 13,540 | $ 2,466 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Two Customers | Customer Concentration Risk | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Concentration risk, percentage | 0.0022 |
EXPENSES BY NATURE - Summary of
EXPENSES BY NATURE - Summary of Detail of the Group's Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total operating expenses | $ 440,562 | $ 445,893 | $ 291,213 |
Depreciation and amortization | 224,546 | 222,257 | 167,644 |
Other adjusting costs | 134,166 | 100,799 | 50,628 |
Total G&A | 119,722 | 170,735 | 102,326 |
Recurring allowance for credit losses | 8,478 | 0 | (4,265) |
Total expenses | 793,308 | 838,885 | 556,918 |
Aggregate remuneration (including Directors): | |||
Wages and salaries | 124,834 | 113,267 | 83,790 |
Payroll taxes | 10,163 | 9,516 | 7,137 |
Benefits | 31,912 | 23,828 | 19,083 |
Total employees and benefits expense | 166,909 | 146,611 | 110,010 |
LOE | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total operating expenses | 213,078 | 182,817 | 119,594 |
Production taxes | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total operating expenses | 61,474 | 73,849 | 30,518 |
Midstream operating expense | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total operating expenses | 69,792 | 71,154 | 60,481 |
Transportation expense | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total operating expenses | 96,218 | 118,073 | 80,620 |
Depreciation and amortization | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Depreciation and amortization | 56,453 | 51,877 | 44,841 |
Depletion | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Depreciation and amortization | 168,093 | 170,380 | 122,803 |
Employees, administrative costs and professional services | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total G&A | 78,659 | 77,172 | 56,812 |
Costs associated with acquisitions | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total G&A | 16,775 | 15,545 | 27,743 |
Other adjusting costs | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total G&A | 17,794 | 69,967 | 10,371 |
Contract Terminations | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total G&A | 28,345 | ||
Deal Breakage and Sourcing Costs | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total G&A | 31,099 | ||
Non-cash equity compensation | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total G&A | $ 6,494 | $ 8,051 | $ 7,400 |
EXPENSES BY NATURE - Summary _2
EXPENSES BY NATURE - Summary of Number of Employees (Details) - employee | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Analysis of income and expense [abstract] | |||
Number of production support employees, including Directors | 389 | 362 | 283 |
Number of production employees | 1,214 | 1,220 | 1,143 |
Workforce | 1,603 | 1,582 | 1,426 |
EXPENSES BY NATURE - Summary _3
EXPENSES BY NATURE - Summary of Directors Remuneration (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Executive Directors | |||
Wages and salaries | $ 124,834 | $ 113,267 | $ 83,790 |
Non-Executive Directors | |||
Total remuneration | 5,585 | 6,989 | 6,340 |
Executive Director | |||
Executive Directors | |||
Wages and salaries | 1,073 | 1,157 | 1,119 |
Taxable benefits | 20 | 24 | 22 |
Benefit plan | 46 | 73 | 71 |
Bonus | 1,130 | 1,631 | 1,427 |
Long-term incentives | 2,322 | 3,193 | 3,018 |
Non-Executive Directors | |||
Total remuneration | 4,591 | 6,078 | 5,657 |
Non-Executive Director | |||
Non-Executive Directors | |||
Fees | 994 | 911 | 683 |
Total remuneration | $ 994 | $ 911 | $ 683 |
EXPENSES BY NATURE - Summary _4
EXPENSES BY NATURE - Summary of Auditor's Remuneration (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Auditors' remuneration | |||
Fees payable to the Group’s external auditors and their associates for the audit of the consolidated financial statements | $ 2,140 | $ 1,790 | $ 1,694 |
Fees payable for the audit of the financial statements of the Company's subsidiaries | 150 | 160 | 0 |
Audit-related assurance services | 1,078 | 874 | 1,628 |
Other assurance services | 13 | 0 | 0 |
Total auditors' remuneration | 3,381 | $ 2,824 | $ 3,322 |
Fees payable for the audit of the financial statements, additional fees for prior year services | $ 249 |
TAXATION - Narrative (Details)
TAXATION - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax [Line Items] | ||||
Tax expense (benefit) | $ 240,643 | $ (178,904) | $ (225,694) | |
Effective tax rate | 24.10% | 22.40% | 41% | |
Total deferred tax asset (liability) | $ (131,206) | $ (358,666) | $ (176,954) | $ 969 |
Uncertain tax position liability | 0 | 0 | 0 | |
Tax credit carryforwards | 163,158 | 184,975 | 183,460 | |
Capital loss carryforwards | 0 | 21,401 | 9,904 | |
Capital loss carryforwards for which no deferred tax asset recorded | 23,102 | |||
U.S. federal | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | 1,600 | |||
Net operating loss carryforwards, subject to limitation | 1,504 | |||
U.S. state | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | 4,025 | |||
UK | ||||
Income Tax [Line Items] | ||||
Tax expense (benefit) | $ 0 | $ 107 | $ (52) |
TAXATION - Provision for Income
TAXATION - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current income tax (benefit) expense | |||
Federal (benefit) expense | $ 7,289 | $ (513) | $ 25,738 |
State (benefit) expense | 5,902 | 2,841 | 11,958 |
Foreign - UK (benefit) expense | 0 | 107 | (52) |
Total current income tax (benefit) expense | 13,191 | 2,435 | 37,644 |
Deferred income tax (benefit) expense | |||
Federal (benefit) expense | 202,133 | (169,531) | (233,679) |
State (benefit) expense | 25,460 | (11,863) | (29,597) |
Foreign - UK (benefit) expense | (141) | 55 | (62) |
Total deferred income tax (benefit) expense | 227,452 | (181,339) | (263,338) |
Total income tax (benefit) expense | $ 240,643 | $ (178,904) | $ (225,694) |
TAXATION - Effective Tax Rates
TAXATION - Effective Tax Rates Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax [Abstract] | |||
Income (loss) before taxation | $ 1,000,344 | $ (799,502) | $ (550,900) |
Income tax benefit (expenses) | $ (240,643) | $ 178,904 | $ 225,694 |
Effective tax rate | 24.10% | 22.40% | 41% |
Expected tax at statutory U.S. federal income tax rate | 21% | 21% | 21% |
State income taxes, net of federal tax benefit | 3.10% | 1.20% | 4.40% |
Federal credits | 0% | 0% | 15.40% |
Other, net | 0% | 0.20% | 0.20% |
TAXATION - Net Deferred Income
TAXATION - Net Deferred Income Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax asset | $ 458,153 | $ 697,036 | ||
Deferred tax liability | (326,947) | (338,370) | ||
Net deferred tax asset (liability) | 131,206 | 358,666 | $ 176,954 | $ (969) |
Deferred tax asset | 144,860 | 371,156 | ||
Deferred tax liability | (13,654) | (12,490) | ||
Asset retirement obligations | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax asset | 103,998 | 92,393 | 114,182 | 90,949 |
Derivative financial instruments | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax asset | 153,057 | 378,918 | 202,802 | 46,237 |
Allowance for doubtful accounts | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax asset | 4,235 | 2,378 | 1,734 | 2,968 |
Net operating loss carryover | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax asset | 686 | 3,865 | 562 | 474 |
Federal tax credits carryover | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax asset | 163,158 | 184,975 | 183,460 | 99,117 |
163(j) interest expense limitation | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax asset | 24,324 | 15,573 | 0 | |
Other | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax asset | 8,695 | 18,934 | 13,306 | 4,160 |
Amortization and depreciation | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability | (252,587) | (255,440) | (266,987) | (244,874) |
Investment in partnerships | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability | $ (74,360) | $ (82,930) | $ (72,105) | $ 0 |
TAXATION - Effects of Deferred
TAXATION - Effects of Deferred Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset, Opening balance | $ 697,036 | ||
Deferred tax liability, Opening balance | (338,370) | ||
Consolidated statements of comprehensive income | (227,452) | $ 181,339 | $ 263,338 |
Other | (8) | 373 | (85,415) |
Deferred tax asset, Closing balance | 458,153 | 697,036 | |
Deferred tax liability, Closing balance | (326,947) | (338,370) | |
Net deferred tax asset (liability), Opening balance | 358,666 | 176,954 | (969) |
Net deferred tax asset (liability), Closing balance | 131,206 | 358,666 | 176,954 |
Asset retirement obligations | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset, Opening balance | 92,393 | 114,182 | 90,949 |
Consolidated statements of comprehensive income | 11,605 | (21,789) | 19,052 |
Other | 0 | 0 | 4,181 |
Deferred tax asset, Closing balance | 103,998 | 92,393 | 114,182 |
Allowance for doubtful accounts | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset, Opening balance | 2,378 | 1,734 | 2,968 |
Consolidated statements of comprehensive income | 1,857 | 644 | (1,320) |
Other | 0 | 0 | 86 |
Deferred tax asset, Closing balance | 4,235 | 2,378 | 1,734 |
Net operating loss carryover | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset, Opening balance | 3,865 | 562 | 474 |
Consolidated statements of comprehensive income | (3,179) | 3,360 | (1,655) |
Other | 0 | (57) | 1,743 |
Deferred tax asset, Closing balance | 686 | 3,865 | 562 |
Federal tax credits carryover | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset, Opening balance | 184,975 | 183,460 | 99,117 |
Consolidated statements of comprehensive income | (21,817) | 1,515 | 84,343 |
Other | 0 | 0 | 0 |
Deferred tax asset, Closing balance | 163,158 | 184,975 | 183,460 |
Property, plant, and equipment and natural gas and oil properties | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liability, Opening balance | (255,440) | (266,987) | (244,874) |
Consolidated statements of comprehensive income | 2,853 | 11,360 | 65,910 |
Other | 0 | 187 | (88,023) |
Deferred tax liability, Closing balance | (252,587) | (255,440) | (266,987) |
Derivative financial instruments | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset, Opening balance | 378,918 | 202,802 | 46,237 |
Consolidated statements of comprehensive income | (225,861) | 176,116 | 156,565 |
Other | 0 | 0 | 0 |
Deferred tax asset, Closing balance | 153,057 | 378,918 | 202,802 |
Investment in partnerships | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liability, Opening balance | (82,930) | (72,105) | 0 |
Consolidated statements of comprehensive income | 8,570 | (11,068) | (67,379) |
Other | 0 | 243 | (4,726) |
Deferred tax liability, Closing balance | (74,360) | (82,930) | (72,105) |
163(j) interest expense limitation | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset, Opening balance | 15,573 | 0 | |
Consolidated statements of comprehensive income | 8,751 | 15,573 | |
Other | |||
Deferred tax asset, Closing balance | 24,324 | 15,573 | 0 |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset, Opening balance | 18,934 | 13,306 | 4,160 |
Consolidated statements of comprehensive income | (10,231) | 5,628 | 7,822 |
Other | (8) | 0 | 1,324 |
Deferred tax asset, Closing balance | $ 8,695 | $ 18,934 | $ 13,306 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per share [abstract] | |||
Net income (loss) attributable to Diversified Energy Company PLC | $ 758,018 | $ (625,410) | $ (325,509) |
Weighted average shares outstanding - basic (in shares) | 47,165 | 42,204 | 39,677 |
Dilutive impact of potential shares (in shares) | 349 | 0 | 0 |
Weighted average shares outstanding - diluted (in shares) | 47,514 | 42,204 | 39,677 |
Earnings (loss) per share - basic (in dollar per share) | $ 16.07 | $ (14.82) | $ (8.20) |
Earnings (loss) per share - diluted (in dollar per share) | $ 15.95 | $ (14.82) | $ (8.20) |
Potentially dilutive shares (in shares) | 54 | 767 | 325 |
NATURAL GAS AND OIL PROPERTIE_2
NATURAL GAS AND OIL PROPERTIES - Summary (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) well | Dec. 31, 2021 USD ($) | |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Impairment | $ (41,616) | $ 0 | $ 0 |
Increase (decrease) in liability | 42,650 | $ (98,802) | 78,156 |
Wells completed that were previously under development | well | 5 | ||
Wells completed that Company participated with a non-operating interest | well | 7 | ||
Natural gas and oil properties | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 2,555,808 | $ 2,530,078 | |
Disposals | (202,886) | 0 | (113,752) |
Impairment | 0 | 0 | |
Ending balance | 2,490,375 | 2,555,808 | 2,530,078 |
Additions related to acquisitions | 266,306 | 285,212 | 907,383 |
Divestitures | 202,886 | 0 | 113,752 |
Costs | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Additions | 42,496 | 95,245 | 70,855 |
Disposals | (11,076) | (5,018) | (2,433) |
Divestitures | 11,076 | 5,018 | 2,433 |
Costs | Natural gas and oil properties | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 3,062,463 | 2,866,353 | 1,968,557 |
Additions | 353,888 | 219,490 | 1,012,691 |
Disposals | (209,612) | (23,380) | (114,895) |
Ending balance | 3,206,739 | 3,062,463 | 2,866,353 |
Divestitures | 209,612 | 23,380 | 114,895 |
Depletion and impairment | Natural gas and oil properties | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (506,655) | (336,275) | (213,472) |
Depletion expense | (168,093) | (170,380) | (122,803) |
Impairment | (41,616) | 0 | 0 |
Ending balance | $ (716,364) | $ (506,655) | $ (336,275) |
NATURAL GAS AND OIL PROPERTIE_3
NATURAL GAS AND OIL PROPERTIES - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) shares field | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment of proved properties | $ 41,616 | $ 0 | $ 0 |
Property, plant and equipment, number of unrecoverable fieds | field | 2 | ||
Natural gas and oil properties | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment of proved properties | $ 0 | $ 0 | |
Discount rate | Natural gas and oil properties | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Significant unobservable input, assets | shares | 10.9 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | $ 462,860 | $ 413,980 | |
Ending balance | 456,208 | 462,860 | $ 413,980 |
Additions related to right-of-use assets | 13,279 | 11,295 | 16,554 |
Fully depreciated assets | 6,546 | 9,222 | 5,597 |
Buildings and leasehold improvements | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 44,075 | 39,606 | |
Ending balance | 44,094 | 44,075 | 39,606 |
Equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 22,742 | 5,403 | |
Ending balance | 23,514 | 22,742 | 5,403 |
Motor vehicles | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 37,195 | 25,376 | |
Ending balance | 35,033 | 37,195 | 25,376 |
Midstream assets | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 337,658 | 329,162 | |
Ending balance | 331,670 | 337,658 | 329,162 |
Other property and equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 21,190 | 14,433 | |
Ending balance | 21,897 | 21,190 | 14,433 |
Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 601,667 | 511,440 | 443,018 |
Additions | 42,496 | 95,245 | 70,855 |
Disposals | (11,076) | (5,018) | (2,433) |
Ending balance | 633,087 | 601,667 | 511,440 |
Additions related to acquisitions | 234 | 26,815 | 25,961 |
Gross carrying amount | Buildings and leasehold improvements | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 47,682 | 41,684 | 28,190 |
Additions | 1,134 | 9,421 | 13,494 |
Disposals | (561) | (3,423) | 0 |
Ending balance | 48,255 | 47,682 | 41,684 |
Gross carrying amount | Equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 30,369 | 9,492 | 6,768 |
Additions | 3,964 | 20,886 | 2,737 |
Disposals | (2,097) | (9) | (13) |
Ending balance | 32,236 | 30,369 | 9,492 |
Gross carrying amount | Motor vehicles | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 66,389 | 45,562 | 35,129 |
Additions | 11,715 | 22,399 | 12,700 |
Disposals | (6,929) | (1,572) | (2,267) |
Ending balance | 71,175 | 66,389 | 45,562 |
Gross carrying amount | Midstream assets | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 433,484 | 398,663 | 367,331 |
Additions | 21,644 | 34,835 | 31,485 |
Disposals | 0 | (14) | (153) |
Ending balance | 455,128 | 433,484 | 398,663 |
Gross carrying amount | Other property and equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 23,743 | 16,039 | 5,600 |
Additions | 4,039 | 7,704 | 10,439 |
Disposals | (1,489) | 0 | 0 |
Ending balance | 26,293 | 23,743 | 16,039 |
Accumulated depreciation and amortisation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (138,807) | (97,460) | (60,915) |
Period changes | (46,844) | (42,913) | (38,053) |
Disposals | 8,772 | 1,566 | 1,508 |
Ending balance | (176,879) | (138,807) | (97,460) |
Accumulated depreciation and amortisation | Buildings and leasehold improvements | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (3,607) | (2,078) | (1,007) |
Period changes | (581) | (1,819) | (1,071) |
Disposals | 27 | 290 | 0 |
Ending balance | (4,161) | (3,607) | (2,078) |
Accumulated depreciation and amortisation | Equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (7,627) | (4,089) | (2,860) |
Period changes | (3,024) | (3,547) | (1,231) |
Disposals | 1,929 | 9 | 2 |
Ending balance | (8,722) | (7,627) | (4,089) |
Accumulated depreciation and amortisation | Motor vehicles | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (29,194) | (20,186) | (12,409) |
Period changes | (12,887) | (10,270) | (9,259) |
Disposals | 5,939 | 1,262 | 1,482 |
Ending balance | (36,142) | (29,194) | (20,186) |
Accumulated depreciation and amortisation | Midstream assets | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (95,826) | (69,501) | (43,597) |
Period changes | (27,632) | (26,330) | (25,928) |
Disposals | 0 | 5 | 24 |
Ending balance | (123,458) | (95,826) | (69,501) |
Accumulated depreciation and amortisation | Other property and equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (2,553) | (1,606) | (1,042) |
Period changes | (2,720) | (947) | (564) |
Disposals | 877 | 0 | 0 |
Ending balance | $ (4,396) | $ (2,553) | $ (1,606) |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Beginning balance | $ 21,098 | $ 14,134 | |
Ending balance | 19,351 | 21,098 | $ 14,134 |
Software | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Beginning balance | 16,789 | 12,903 | |
Ending balance | 15,949 | 16,789 | 12,903 |
Other Acquired Intangibles | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Beginning balance | 4,309 | 1,231 | |
Ending balance | 3,402 | 4,309 | 1,231 |
Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Beginning balance | 46,430 | 30,995 | 27,171 |
Additions | 5,949 | 15,435 | 3,824 |
Disposals | (3,706) | ||
Ending balance | 48,673 | 46,430 | 30,995 |
Gross carrying amount | Software | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Beginning balance | 39,306 | 28,095 | 24,271 |
Additions | 5,949 | 11,211 | 3,824 |
Disposals | (806) | ||
Ending balance | 44,449 | 39,306 | 28,095 |
Gross carrying amount | Other Acquired Intangibles | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Beginning balance | 7,124 | 2,900 | 2,900 |
Additions | 0 | 4,224 | 0 |
Disposals | (2,900) | ||
Ending balance | 4,224 | 7,124 | 2,900 |
Accumulated depreciation and amortisation | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Beginning balance | (25,332) | (16,861) | (7,958) |
Period changes | (7,696) | (8,471) | (8,903) |
Disposals | 3,706 | ||
Ending balance | (29,322) | (25,332) | (16,861) |
Accumulated depreciation and amortisation | Software | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Beginning balance | (22,517) | (15,192) | (7,246) |
Period changes | (6,789) | (7,325) | (7,946) |
Disposals | 806 | ||
Ending balance | (28,500) | (22,517) | (15,192) |
Accumulated depreciation and amortisation | Other Acquired Intangibles | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Beginning balance | (2,815) | (1,669) | (712) |
Period changes | (907) | (1,146) | (957) |
Disposals | 2,900 | ||
Ending balance | $ (822) | $ (2,815) | $ (1,669) |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Net Fair Value of Derivative Financial Instruments (Details) bbl in Thousands, MMBTU in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) $ / bbl $ / Mcfe MMBTU bbl | Dec. 31, 2022 USD ($) |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Fair value, assets | $ 112,060 | $ 41,675 |
Fair value, liabilities | (669,520) | $ (1,471,641) |
Fair value, assets (liabilities), net | $ (557,460) | |
Natural gas contracts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 1,234,530 | |
Fair value, assets (liabilities), net | $ (552,613) | |
Natural gas contracts | Swaptions | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 544,297 | |
Fair value, liabilities | $ (378,851) | |
Interest Contracts | Interest rate swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Principal Hedged | $ 5,520 | |
Fixed-Rate | 4.15% | |
2024 | Natural gas contracts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 357,552 | |
Fair value, assets (liabilities), net | $ 39,897 | |
2024 | Natural gas contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 191,397 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.30 | |
Fair value, assets | $ 74,340 | |
2024 | Natural gas contracts | Collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 2,560 | |
Fair value, assets | $ 3,278 | |
2024 | Natural gas contracts | Collars, Purchased Puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 4.03 | |
2024 | Natural gas contracts | Collars, Sold Calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 6.25 | |
2024 | Natural gas contracts | Stand-Alone Calls, net | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 0 | |
Fair value, liabilities | $ (36,415) | |
2024 | Natural gas contracts | Basis Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 163,595 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | (0.73) | |
Fair value, liabilities | $ (1,306) | |
2024 | NGLs Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 3,301 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 37.74 | |
Fair value, assets | $ 9,804 | |
2024 | NGLs Contracts | Stand-Alone Calls, net | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 915 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 31.29 | |
Fair value, liabilities | $ (2,400) | |
2024 | Oil Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 431 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 62.54 | |
Fair value, liabilities | $ (3,521) | |
2024 | Oil Contracts | Sold Calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 183 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 70 | |
Fair value, liabilities | $ (1,188) | |
2025 | Natural gas contracts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 190,222 | |
Fair value, assets (liabilities), net | $ (109,385) | |
2025 | Natural gas contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 164,672 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.21 | |
Fair value, liabilities | $ (76,697) | |
2025 | Natural gas contracts | Stand-Alone Calls, net | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 0 | |
Fair value, liabilities | $ (33,060) | |
2025 | Natural gas contracts | Basis Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 25,550 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | (0.21) | |
Fair value, assets | $ 372 | |
2025 | NGLs Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 2,143 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 30.22 | |
Fair value, liabilities | $ (1,411) | |
2025 | Oil Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 366 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 59.01 | |
Fair value, liabilities | $ (3,057) | |
2026 | Natural gas contracts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 142,459 | |
Fair value, assets (liabilities), net | $ (104,274) | |
2026 | Natural gas contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 120,559 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.18 | |
Fair value, liabilities | $ (95,779) | |
2026 | Natural gas contracts | Stand-Alone Calls, net | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 10,950 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.75 | |
Fair value, liabilities | $ (8,153) | |
2026 | Natural gas contracts | Basis Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 10,950 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | (0.21) | |
Fair value, liabilities | $ (342) | |
2026 | NGLs Contracts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 7,456 | |
Fair value, assets (liabilities), net | $ 4,732 | |
2026 | NGLs Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 1,097 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 27.68 | |
Fair value, liabilities | $ (1,261) | |
2026 | Oil Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 283 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 59.48 | |
Fair value, liabilities | $ (1,451) | |
2027 | Natural gas contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 101,303 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.21 | |
Fair value, liabilities | $ (76,188) | |
2027 | Natural gas contracts | Collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 1,414 | |
Fair value, assets | $ 601 | |
2027 | Natural gas contracts | Collars, Purchased Puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 4.28 | |
2027 | Natural gas contracts | Collars, Sold Calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 7.17 | |
2027 | Natural gas contracts | Stand-Alone Calls, net | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 10,950 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.75 | |
Fair value, liabilities | $ (8,784) | |
2027 | Natural gas contracts | Purchased puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 4,906 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.25 | |
Fair value, assets | $ 498 | |
2027 | Natural gas contracts | Sold puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 4,906 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 1.93 | |
Fair value, assets (liabilities), net | $ (275) | |
2027 | Oil Contracts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 1,425 | |
Fair value, liabilities | $ (9,894) | |
2027 | Oil Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 162 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 58.60 | |
Fair value, liabilities | $ (677) | |
2028 | Natural gas contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 71,324 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.79 | |
Fair value, liabilities | $ (71,625) | |
2028 | Natural gas contracts | Collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 5,382 | |
Fair value, assets | $ 2,616 | |
2028 | Natural gas contracts | Collars, Purchased Puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 4.28 | |
2028 | Natural gas contracts | Collars, Sold Calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 6.90 | |
2028 | Natural gas contracts | Purchased puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 20,351 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.77 | |
Fair value, assets | $ 8,622 | |
2028 | Natural gas contracts | Sold puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 20,351 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 1.93 | |
Fair value, assets (liabilities), net | $ (4,711) | |
2029 | Natural gas contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 29,190 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.11 | |
Fair value, liabilities | $ (40,451) | |
2029 | Natural gas contracts | Collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 3,726 | |
Fair value, assets | $ 2,150 | |
2029 | Natural gas contracts | Collars, Purchased Puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 4.28 | |
2029 | Natural gas contracts | Collars, Sold Calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 7.51 | |
2029 | Natural gas contracts | Purchased puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 30,066 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.92 | |
Fair value, assets | $ 10,782 | |
2029 | Natural gas contracts | Sold puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 30,066 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 1.93 | |
Fair value, assets (liabilities), net | $ (3,257) | |
2030 | Natural gas contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 5,450 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.03 | |
Fair value, liabilities | $ (7,979) | |
2030 | Natural gas contracts | Purchased puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 14,492 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.93 | |
Fair value, assets | $ 5,362 | |
2030 | Natural gas contracts | Sold puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 14,492 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 1.93 | |
Fair value, liabilities | $ (1,735) | |
1/10/2024-30/9/2028 | Natural gas contracts | Swaptions | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 14,610 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.91 | |
Fair value, liabilities | $ (12,749) | |
1/1/2025-31/12/2029 | Natural gas contracts | Swaptions | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 36,520 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.77 | |
Fair value, liabilities | $ (36,684) | |
1/4/2026-31/3/2030 | Natural gas contracts | Swaptions | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 82,171 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.57 | |
Fair value, liabilities | $ (97,901) | |
1/4/2030-31/3/2032 | Natural gas contracts | Swaptions | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 42,627 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.57 | |
Fair value, liabilities | $ (47,143) |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Net Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Non-current assets | $ 24,401 | $ 13,936 |
Current assets | 87,659 | 27,739 |
Total assets | 112,060 | 41,675 |
Liabilities | ||
Non-current liabilities | (623,684) | (1,177,801) |
Current liabilities | (45,836) | (293,840) |
Derivative financial liabilities | (669,520) | (1,471,641) |
Net assets (liabilities) - non-current | (599,283) | (1,163,865) |
Net assets (liabilities) - current | 41,823 | (266,101) |
Total net assets (liabilities) | $ (557,460) | $ (1,429,966) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Effects of Offsetting (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Presented without Effects of Netting | ||
Non-current assets | $ 103,008 | $ 101,275 |
Current assets | 198,806 | 92,611 |
Total assets | 301,814 | 193,886 |
Non-current liabilities | (678,053) | (1,261,369) |
Current liabilities | (181,221) | (362,483) |
Total liabilities | (859,274) | (1,623,852) |
Total net assets (liabilities) | (557,460) | (1,429,966) |
Effects of Netting | ||
Non-current assets | (78,607) | (87,339) |
Current assets | (111,147) | (64,872) |
Total assets | (189,754) | (152,211) |
Non-current liabilities | 54,369 | 83,568 |
Current liabilities | 135,385 | 68,643 |
Total liabilities | 189,754 | 152,211 |
Total net assets (liabilities) | 0 | 0 |
As Presented with Effects of Netting | ||
Non-current assets | 24,401 | 13,936 |
Current assets | 87,659 | 27,739 |
Total assets | 112,060 | 41,675 |
Non-current liabilities | (623,684) | (1,177,801) |
Current liabilities | (45,836) | (293,840) |
Derivative financial liabilities | (669,520) | (1,471,641) |
Total net assets (liabilities) | $ (557,460) | $ (1,429,966) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Gain (Loss) on Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Total gain (loss) on settled derivative instruments | $ 174,821 | $ (897,236) | $ (322,413) |
Gain (loss) on fair value adjustments of unsettled financial instruments | 905,695 | (861,457) | (652,465) |
Total gain (loss) on derivative financial instruments | 1,080,516 | (1,758,693) | (974,878) |
Commodity derivatives | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Total gain (loss) on settled derivative instruments | 178,064 | (895,802) | (320,656) |
Interest rate swaps | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Total gain (loss) on settled derivative instruments | (2,722) | (1,434) | (530) |
Foreign currency hedges | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Total gain (loss) on settled derivative instruments | $ (521) | $ 0 | $ (1,227) |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2023 | Aug. 31, 2023 | Feb. 28, 2023 | Oct. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | May 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||||||||||
Proceeds from derivatives, operating activities | $ 3,367 | |||||||||
Payments for derivatives, operating activities | $ 6,797 | $ 133,573 | ||||||||
Payments for derivatives, investing activities | $ 0 | $ 0 | $ 56,466 | |||||||
Puts | ||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||||||||||
Proceeds from derivatives, operating activities | $ 9,240 | $ 9,045 | ||||||||
Swaps | ||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||||||||||
Proceeds from derivatives, operating activities | $ 8,401 | |||||||||
Commodity derivatives | ||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||||||||||
Payments for derivatives, financing activities | $ 6,376 | $ 32,242 | $ 31,250 | $ 41,823 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other non-current assets | ||
Total other non-current assets | $ 9,172 | $ 4,351 |
Other current assets | ||
Prepaid expenses | 3,955 | 5,255 |
Inventory | 7,829 | 9,227 |
Total other current assets | $ 11,784 | $ 14,482 |
SHARE CAPITAL - Narrative (Deta
SHARE CAPITAL - Narrative (Details) £ / shares in Units, $ / shares in Units, £ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||
Feb. 28, 2023 USD ($) $ / shares shares | Feb. 28, 2023 GBP (£) £ / shares shares | Jul. 31, 2022 USD ($) shares | Jul. 31, 2022 GBP (£) shares | Feb. 28, 2022 USD ($) shares | Feb. 28, 2022 GBP (£) shares | May 31, 2021 USD ($) $ / shares shares | May 31, 2021 GBP (£) £ / shares shares | Jan. 31, 2021 USD ($) shares | Jan. 31, 2021 GBP (£) shares | Dec. 31, 2023 USD ($) shares $ / shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 GBP (£) £ / shares shares | Feb. 01, 2022 shares | |
Disclosure of classes of share capital [line items] | ||||||||||||||
Issued price per shares (in USD per share) | (per share) | $ 25.34 | £ 21 | $ 31.80 | £ 22.40 | ||||||||||
Gross proceeds | $ 162,757 | £ 134,866 | $ 225,050 | £ 158,526 | ||||||||||
Payments for share issue costs | $ | $ 5,969 | $ 11,206 | ||||||||||||
Number of share purchased (in shares) | 647,000 | 400,000 | 400,000 | |||||||||||
Purchase price (in USD per share) | $ / shares | $ 17.08 | $ 29.42 | ||||||||||||
Payment for purchase of treasury shares | $ | $ 11,048 | $ 11,760 | ||||||||||||
Repurchase of treasury shares, percentage of issued share capital | 100% | 100% | 100% | |||||||||||
Value of treasury shares cancelled | $ | $ (22,931) | |||||||||||||
Warrants cancelled (in shares) | 7,000 | 7,000 | 24,000 | 24,000 | 119,000 | 119,000 | ||||||||
Value of warrants cancelled | $ 56 | £ 46 | $ 265 | £ 196 | $ 1,429 | £ 1,040 | ||||||||
Warrants Issued | 11,000 | 11,000 | 15,000 | 15,000 | ||||||||||
Value of warrant issued | $ 201 | £ 166 | $ 251 | £ 187 | ||||||||||
Warrants outstanding (in shares) | 0 | 0 | 57,000 | 57,000 | 18,000 | |||||||||
Number of shares issued and fully paid | 6,422,000 | 6,422,000 | 7,077,000 | 7,077,000 | ||||||||||
Employee Benefit Trust | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares issued (in shares) | 334,000 | 88,000 | 88,000 | |||||||||||
Number of share purchased (in shares) | 0 | 790,000 | 790,000 | |||||||||||
Purchase price (in USD per share) | (per share) | $ 29.04 | £ 24.56 | ||||||||||||
Payment for purchase of treasury shares | $ 22,931 | £ 19,388 | ||||||||||||
Number of shares outstanding (in shares) | 367,000 |
SHARE CAPITAL - Summary of Shar
SHARE CAPITAL - Summary of Share Capital, Net of Customary Transaction Costs (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | |||
Number of shares outstanding at beginning of period (in shares) | 41,447 | 42,483 | 35,369 |
Number of shares outstanding at end of period (in shares) | 47,556 | 41,447 | 42,483 |
Equity at beginning of period | $ (137,724) | $ 663,950 | $ 886,658 |
Issuance of share capital (equity compensation) | 3,047 | 2,382 | 4,033 |
Repurchase of shares | (22,931) | ||
Equity at end of period | $ 598,410 | $ (137,724) | $ 663,950 |
Equity Placements | |||
Number of Shares | |||
Increase (decrease) in number of shares outstanding | 6,422 | 7,077 | |
Equity Compensation | |||
Number of Shares | |||
Increase (decrease) in number of shares outstanding | 334 | 40 | 37 |
Settlement Of Warrants | |||
Number of Shares | |||
Increase (decrease) in number of shares outstanding | 26 | ||
Equity Compensation Through Employee Benefit Trust | |||
Number of Shares | |||
Increase (decrease) in number of shares outstanding | 88 | ||
Employee Benefit Trust | |||
Number of Shares | |||
Increase (decrease) in number of shares outstanding | (790) | ||
Share Buyback Program | |||
Number of Shares | |||
Increase (decrease) in number of shares outstanding | (647) | (400) | |
Total Share Capital | |||
Number of Shares | |||
Equity at beginning of period | $ 11,503 | $ 11,571 | $ 9,520 |
Issuance of share capital (equity compensation) | 7 | 7 | |
Equity at end of period | 12,897 | 11,503 | 11,571 |
Total Share Capital | Equity Placements | |||
Number of Shares | |||
Increase (decrease) through other changes, equity | 2,044 | ||
Issuance of share capital (equity compensation) | 1,555 | ||
Total Share Capital | Equity Compensation | |||
Number of Shares | |||
Issuance of share capital (equity compensation) | 0 | 7 | 7 |
Total Share Capital | Settlement Of Warrants | |||
Number of Shares | |||
Issuance of share capital (equity compensation) | 5 | ||
Total Share Capital | Equity Compensation Through Employee Benefit Trust | |||
Number of Shares | |||
Issuance of share capital (equity compensation) | 0 | ||
Total Share Capital | Employee Benefit Trust | |||
Number of Shares | |||
Repurchase of shares | 0 | ||
Total Share Capital | Share Buyback Program | |||
Number of Shares | |||
Repurchase of shares | (161) | (80) | |
Total Share Premium | |||
Number of Shares | |||
Equity at beginning of period | 1,052,959 | 1,052,959 | 841,159 |
Equity at end of period | 1,208,192 | 1,052,959 | 1,052,959 |
Total Share Premium | Equity Placements | |||
Number of Shares | |||
Increase (decrease) through other changes, equity | 211,800 | ||
Issuance of share capital (equity compensation) | 155,233 | ||
Total Share Premium | Equity Compensation | |||
Number of Shares | |||
Issuance of share capital (equity compensation) | 0 | 0 | $ 0 |
Total Share Premium | Settlement Of Warrants | |||
Number of Shares | |||
Issuance of share capital (equity compensation) | 0 | ||
Total Share Premium | Equity Compensation Through Employee Benefit Trust | |||
Number of Shares | |||
Issuance of share capital (equity compensation) | 0 | ||
Total Share Premium | Employee Benefit Trust | |||
Number of Shares | |||
Repurchase of shares | 0 | ||
Total Share Premium | Share Buyback Program | |||
Number of Shares | |||
Repurchase of shares | $ 0 | $ 0 |
NON-CASH SHARE-BASED COMPENSA_3
NON-CASH SHARE-BASED COMPENSATION - Narrative (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Options | ||
Disclosure of classes of share capital [line items] | ||
Vesting period | 3 years | |
Bottom of range | Options | ||
Disclosure of classes of share capital [line items] | ||
Vesting percentage | 0% | |
Bottom of range | PSUs | ||
Disclosure of classes of share capital [line items] | ||
Vesting percentage | 0% | |
Top of range | Options | ||
Disclosure of classes of share capital [line items] | ||
Vesting percentage | 100% | |
Top of range | PSUs | ||
Disclosure of classes of share capital [line items] | ||
Vesting percentage | 100% | |
2017 Equity Incentive Plan | ||
Disclosure of classes of share capital [line items] | ||
Shares authorized and reserved for issuance (in shares) | 3,284 | |
Number of share option vested (in shares) | 1,648 | 595 |
Number of share options granted, remain unvested (in shares) | 1,141 | 1,283 |
Number of share options granted, remain unvested (in shares) | 238 | 212 |
ESPP | ||
Disclosure of classes of share capital [line items] | ||
Shares authorized and reserved for issuance (in shares) | 300 | |
Number of share purchased (in shares) | 15 | |
Shares remaining available to be purchased (in shares) | 285 |
NON-CASH SHARE-BASED COMPENSA_4
NON-CASH SHARE-BASED COMPENSATION - Schedule of Options Award Activity (Details) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 shares $ / shares £ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | |
Number Of Options | |||
Beginning of period (in shares) | shares | 376 | 1,095 | 1,151 |
Granted (in shares) | shares | 0 | 0 | 0 |
Exercised (in shares) | shares | (2) | (399) | (41) |
Forfeited (in shares) | shares | (153) | (320) | (15) |
Ending of period (in shares) | shares | 221 | 376 | 1,095 |
Weighted Average Grant Date Fair Value per Share | |||
Beginning of period (in dollars per share) | $ / shares | $ 8.21 | $ 8.53 | $ 8.50 |
Granted (in dollars per share) | $ / shares | 0 | 0 | 0 |
Exercised (in dollars per share) | $ / shares | 6.60 | 6.60 | 6.60 |
Forfeited (in dollars per share) | $ / shares | 8.25 | 11.30 | 11.80 |
Ending of period (in dollars per share) | $ / shares | $ 8.20 | $ 8.21 | $ 8.53 |
Number of share options exercisable in share-based payment arrangement | shares | 162 | 19 | 202 |
Weighted average remaining contractual life of outstanding share options | 4 years 7 months 6 days | ||
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise | $ / shares | $ 24.29 | $ 32.35 | $ 34.80 |
Bottom of range | |||
Weighted Average Grant Date Fair Value per Share | |||
Weighted average exercise price of share options exercisable in share-based payment arrangement (in euro per share) | £ / shares | $ 16.80 | ||
Top of range | |||
Weighted Average Grant Date Fair Value per Share | |||
Weighted average exercise price of share options exercisable in share-based payment arrangement (in euro per share) | £ / shares | $ 24 |
NON-CASH SHARE-BASED COMPENSA_5
NON-CASH SHARE-BASED COMPENSATION - Schedule of RSU Equity Award Activity (Details) - RSUs shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | |
Number of Shares | |||
Beginning of period (in shares) | shares | 338 | 207 | 172 |
Granted (in shares) | shares | 253 | 199 | 77 |
Vested (in shares) | shares | (181) | (64) | (38) |
Forfeited (in shares) | shares | (102) | (4) | (4) |
Ending of period (in shares) | shares | 308 | 338 | 207 |
Weighted Average Grant Date Fair Value per Share | |||
Beginning of period (in dollars per share) | $ / shares | $ 27.47 | $ 26.76 | $ 23.76 |
Granted (in dollars per share) | $ / shares | 22.35 | 27.70 | 31.72 |
Vested (in dollars per share) | $ / shares | 23.08 | 25.92 | 23.27 |
Forfeited (in dollars per share) | $ / shares | 27.54 | 27.24 | 26.38 |
Ending of period (in dollars per share) | $ / shares | $ 25.82 | $ 27.47 | $ 26.76 |
NON-CASH SHARE-BASED COMPENSA_6
NON-CASH SHARE-BASED COMPENSATION - Schedule of PSU Equity Award Activity (Details) - PSUs shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | |
Number of Shares | |||
Beginning of period (in shares) | shares | 569 | 341 | 221 |
Granted (in shares) | shares | 349 | 232 | 124 |
Vested (in shares) | shares | (216) | 0 | 0 |
Forfeited (in shares) | shares | (90) | (4) | (4) |
Ending of period (in shares) | shares | 612 | 569 | 341 |
Weighted Average Grant Date Fair Value per Share | |||
Beginning of period (in dollars per share) | $ / shares | $ 25.57 | $ 23.90 | $ 25.15 |
Granted (in dollars per share) | $ / shares | 16.66 | 28.04 | 21.64 |
Vested (in dollars per share) | $ / shares | 23.85 | 0 | 0 |
Forfeited (in dollars per share) | $ / shares | 20.30 | 26.07 | 23.06 |
Ending of period (in dollars per share) | $ / shares | $ 21.87 | $ 25.57 | $ 23.90 |
NON-CASH SHARE-BASED COMPENSA_7
NON-CASH SHARE-BASED COMPENSATION - Schedule of Valuation Inputs (Details) - PSUs | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Risk-free rate of interest | 3.30% | 1.30% | 0.20% |
Volatility | 31% | 37% | 35% |
Bottom of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Correlation with comparator group range | 0.01 | 0.01 | 0.02 |
Top of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Correlation with comparator group range | 0.30 | 0.36 | 0.36 |
NON-CASH SHARE-BASED COMPENSA_8
NON-CASH SHARE-BASED COMPENSATION - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | |||
Total share-based compensation expense | $ 6,494 | $ 8,051 | $ 7,400 |
Options | |||
Disclosure of classes of share capital [line items] | |||
Total share-based compensation expense | 292 | (749) | 2,115 |
RSUs | |||
Disclosure of classes of share capital [line items] | |||
Total share-based compensation expense | 2,833 | 4,210 | 2,346 |
PSUs | |||
Disclosure of classes of share capital [line items] | |||
Total share-based compensation expense | 3,335 | 4,590 | 2,939 |
ESPP | |||
Disclosure of classes of share capital [line items] | |||
Total share-based compensation expense | $ 34 | $ 0 | $ 0 |
DIVIDENDS - Dividends Declared
DIVIDENDS - Dividends Declared and Paid (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 29, 2023 £ / shares shares | Dec. 29, 2023 USD ($) $ / shares shares | Sep. 29, 2023 £ / shares shares | Sep. 29, 2023 USD ($) $ / shares shares | Jun. 30, 2023 £ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Mar. 28, 2023 £ / shares shares | Mar. 28, 2023 USD ($) $ / shares shares | Dec. 28, 2022 £ / shares shares | Dec. 28, 2022 USD ($) $ / shares shares | Sep. 26, 2022 £ / shares shares | Sep. 26, 2022 USD ($) $ / shares shares | Jun. 30, 2022 £ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Mar. 28, 2022 £ / shares shares | Mar. 28, 2022 USD ($) $ / shares shares | Dec. 17, 2021 £ / shares shares | Dec. 17, 2021 USD ($) $ / shares shares | Sep. 24, 2021 £ / shares shares | Sep. 24, 2021 USD ($) $ / shares shares | Jun. 24, 2021 £ / shares shares | Jun. 24, 2021 USD ($) $ / shares shares | Mar. 26, 2021 £ / shares shares | Mar. 26, 2021 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 05, 2023 shares | Dec. 31, 2020 shares | |
Dividends1 [Abstract] | |||||||||||||||||||||||||||||
Dividend per Share (in USD per share or GBP per share) | (per share) | £ 0.6840 | $ 0.8750 | £ 0.7040 | $ 0.8750 | £ 0.6860 | $ 0.8750 | £ 0.7220 | $ 0.8750 | £ 0.6900 | $ 0.8500 | £ 0.7320 | $ 0.8500 | £ 0.6860 | $ 0.8500 | £ 0.6500 | $ 0.8500 | £ 0.5980 | $ 0.8000 | £ 0.5760 | $ 0.8000 | £ 0.5620 | $ 0.8000 | £ 0.5700 | $ 0.8000 | |||||
Shares outstanding (in shares) | shares | 47,857,000 | 47,857,000 | 48,157,000 | 48,157,000 | 48,165,000 | 48,165,000 | 47,869,000 | 47,869,000 | 41,447,000 | 41,447,000 | 42,294,000 | 42,294,000 | 42,527,000 | 42,527,000 | 42,502,000 | 42,502,000 | 42,480,000 | 42,480,000 | 42,480,000 | 42,480,000 | 42,472,000 | 42,472,000 | 35,376,000 | 35,376,000 | 47,556,000 | 41,447,000 | 42,483,000 | 0.05 | 35,369,000 |
Gross Dividends Paid | $ | $ 41,875 | $ 42,137 | $ 42,144 | $ 41,885 | $ 35,230 | $ 35,950 | $ 36,148 | $ 36,127 | $ 33,984 | $ 33,984 | $ 33,970 | $ 28,301 | $ 168,041 | $ 143,455 | $ 130,239 |
DIVIDENDS - Narrative (Details)
DIVIDENDS - Narrative (Details) | Mar. 28, 2024 $ / shares | Dec. 29, 2023 $ / shares | Dec. 29, 2023 £ / shares | Sep. 29, 2023 $ / shares | Sep. 29, 2023 £ / shares | Jun. 30, 2023 $ / shares | Jun. 30, 2023 £ / shares | Mar. 28, 2023 $ / shares | Mar. 28, 2023 £ / shares | Dec. 28, 2022 $ / shares | Dec. 28, 2022 £ / shares | Sep. 26, 2022 $ / shares | Sep. 26, 2022 £ / shares | Jun. 30, 2022 $ / shares | Jun. 30, 2022 £ / shares | Mar. 28, 2022 $ / shares | Mar. 28, 2022 £ / shares | Dec. 17, 2021 $ / shares | Dec. 17, 2021 £ / shares | Sep. 24, 2021 $ / shares | Sep. 24, 2021 £ / shares | Jun. 24, 2021 $ / shares | Jun. 24, 2021 £ / shares | Mar. 26, 2021 $ / shares | Mar. 26, 2021 £ / shares | Mar. 19, 2024 $ / shares |
Dividends [Line Items] | ||||||||||||||||||||||||||
Dividend per share (in USD per share) | (per share) | $ 0.8750 | £ 0.6840 | $ 0.8750 | £ 0.7040 | $ 0.8750 | £ 0.6860 | $ 0.8750 | £ 0.7220 | $ 0.8500 | £ 0.6900 | $ 0.8500 | £ 0.7320 | $ 0.8500 | £ 0.6860 | $ 0.8500 | £ 0.6500 | $ 0.8000 | £ 0.5980 | $ 0.8000 | £ 0.5760 | $ 0.8000 | £ 0.5620 | $ 0.8000 | £ 0.5700 | ||
Forecast | ||||||||||||||||||||||||||
Dividends [Line Items] | ||||||||||||||||||||||||||
Recommended dividend amount (in USD per share) | $ 0.29 | |||||||||||||||||||||||||
Major ordinary share transactions | ||||||||||||||||||||||||||
Dividends [Line Items] | ||||||||||||||||||||||||||
Dividend per share (in USD per share) | $ 0.8750 |
ASSET RETIREMENT OBLIGATIONS -
ASSET RETIREMENT OBLIGATIONS - Narrative (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Discount rate | Provision for decommissioning, restoration and rehabilitation costs | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 0.034 | 0.036 | 0.029 |
ASSET RETIREMENT OBLIGATIONS _2
ASSET RETIREMENT OBLIGATIONS - Schedule of Provision for Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | |||
Balance at beginning of period | $ 457,083 | $ 525,589 | $ 346,124 |
Additions | 3,250 | 24,395 | 96,292 |
Accretion | 26,926 | 27,569 | 24,396 |
Asset retirement costs | (5,961) | (4,889) | (2,879) |
Disposals | (17,300) | (16,779) | (16,500) |
Revisions to restimate | 42,650 | (98,802) | 78,156 |
Balance at end of period | 506,648 | 457,083 | 525,589 |
Less: Current asset retirement obligations | 5,402 | 4,529 | 3,399 |
Non-current asset retirement obligations | 501,246 | 452,554 | 522,190 |
Increase (decrease) in liability | 42,650 | (98,802) | 78,156 |
Increase (decrease) attributable to change in discount rate | 27,830 | (144,656) | 109,306 |
Increase (decrease) attributable to change in cost revisions | 16,059 | 29,357 | |
Increase (decrease) attributable to change in timing | $ (1,239) | $ 16,497 | $ (27,038) |
ASSET RETIREMENT OBLIGATIONS _3
ASSET RETIREMENT OBLIGATIONS - Schedule of Changes to Assumptions for the Estimation of the Group’s Asset Retirement Obligations (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Discount rate | |
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, liabilities [line items] | |
Increase (decrease) in asset retirement obligation due to reasonably possible 10% increase in measurement input | $ (164,357) |
Increase (decrease) in asset retirement obligation due to reasonably possible 10% decrease in measurement input | 817,004 |
Timing | |
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, liabilities [line items] | |
Increase (decrease) in asset retirement obligation due to reasonably possible 10% increase in measurement input | 31,339 |
Increase (decrease) in asset retirement obligation due to reasonably possible 10% decrease in measurement input | (34,235) |
Cost | |
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, liabilities [line items] | |
Increase (decrease) in asset retirement obligation due to reasonably possible 10% increase in measurement input | 50,580 |
Increase (decrease) in asset retirement obligation due to reasonably possible 10% decrease in measurement input | $ (50,580) |
LEASES - Schedule of Reconcilia
LEASES - Schedule of Reconciliation of Leases Arising from Financing Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease Liability | |||
Balance at beginning of period | $ 28,862 | $ 27,804 | $ 18,878 |
Additions | 14,430 | 11,269 | 16,482 |
Interest expense | 1,661 | 1,022 | 1,050 |
Cash outflows | (13,831) | (11,233) | (8,606) |
Balance at end of period | 31,122 | 28,862 | 27,804 |
Current liability | 10,563 | 9,293 | 9,627 |
Non-current liability | 20,559 | 19,569 | 18,177 |
Total | $ 31,122 | $ 28,862 | 27,804 |
Indigo, Blackbeard and Tapstone Acquisitions | |||
Lease Liability | |||
Additions | $ 8,062 |
LEASES - Schedule of Right-of-u
LEASES - Schedule of Right-of-use Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Balance at beginning of period | $ 27,959 | $ 26,908 | $ 18,026 |
Additions related to right-of-use assets | 13,279 | 11,295 | 16,554 |
Depreciation | (11,224) | (10,244) | (7,672) |
Balance at end of period | 30,014 | 27,959 | 26,908 |
Motor vehicles | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Balance at beginning of period | 23,782 | 19,149 | |
Balance at end of period | 25,592 | 23,782 | 19,149 |
Midstream assets | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Balance at beginning of period | 3,801 | 6,502 | |
Balance at end of period | 3,136 | 3,801 | 6,502 |
Buildings and leasehold improvements | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Balance at beginning of period | 376 | 1,257 | |
Balance at end of period | $ 1,286 | $ 376 | 1,257 |
Indigo, Blackbeard and Tapstone Acquisitions | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Additions related to right-of-use assets | $ 8,062 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases1 [Abstract] | |||
Expense relating to leases of short-term and low-value assets for which recognition exemption has been used | $ 30,024 | $ 25,153 | $ 15,362 |
LEASES - Schedule of Range of D
LEASES - Schedule of Range of Discount Rates Applied in Calculating Right-of-use Assets and Related Lease Liabilities (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Bottom of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Discount rates range | 1.80% | 1.80% | 1.80% |
Top of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Discount rates range | 7.10% | 6.30% | 3.30% |
LEASES - Schedule of Maturity o
LEASES - Schedule of Maturity of Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis of lease liabilities [Line Items] | ||||
Total | $ 31,122 | $ 28,862 | $ 27,804 | $ 18,878 |
Not later than one year | ||||
Disclosure of maturity analysis of lease liabilities [Line Items] | ||||
Total | 10,563 | 9,293 | 9,627 | |
Later than one year and not later than five years | ||||
Disclosure of maturity analysis of lease liabilities [Line Items] | ||||
Total | 20,559 | 19,569 | 18,177 | |
Later than five years | ||||
Disclosure of maturity analysis of lease liabilities [Line Items] | ||||
Total | $ 0 | $ 0 | $ 0 |
BORROWINGS - Schedule of Borrow
BORROWINGS - Schedule of Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | May 31, 2020 | Apr. 30, 2020 | Nov. 30, 2019 |
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | $ 1,324,848 | $ 1,498,166 | ||||||
Less: Current portion of long-term debt | (200,822) | (271,096) | ||||||
Total non-current borrowings, net | 1,075,805 | 1,169,233 | ||||||
Deferred financing costs | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | (41,123) | (48,256) | ||||||
Original issue discounts | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | $ (7,098) | $ (9,581) | ||||||
Credit Facility | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Interest rate | 8.66% | 7.42% | ||||||
Borrowings | $ 159,000 | $ 56,000 | ||||||
ABS I Notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Interest rate | 500% | 5% | ||||||
Borrowings | $ 100,898 | 125,864 | ||||||
ABS II Notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Interest rate | 525% | 5.25% | ||||||
Borrowings | $ 125,922 | 147,458 | ||||||
ABS III Notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Interest rate | 487.50% | 4.875% | ||||||
Borrowings | $ 274,710 | 319,856 | ||||||
ABS IV Notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Interest rate | 495% | 4.95% | ||||||
Borrowings | $ 99,951 | 130,144 | ||||||
ABS V Notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Interest rate | 578% | 5.78% | ||||||
Borrowings | $ 290,913 | 378,796 | ||||||
ABS VI Notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Interest rate | 750% | 7.50% | ||||||
Borrowings | $ 159,357 | 212,446 | ||||||
Term Loan I | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Interest rate | 650% | 6.50% | ||||||
Borrowings | $ 106,470 | 120,518 | ||||||
Miscellaneous Borrowings | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | $ 7,627 | $ 7,084 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2023 USD ($) component performance_target | Oct. 31, 2022 USD ($) | May 31, 2020 USD ($) | Apr. 30, 2020 USD ($) | Dec. 31, 2023 USD ($) MtCO2e component performance_target | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Aug. 31, 2022 shares | May 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | Nov. 30, 2019 USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings | $ 1,324,848 | $ 1,324,848 | $ 1,498,166 | ||||||||||
Proceeds from borrowings | 1,537,230 | 2,587,554 | $ 1,727,745 | ||||||||||
Interest expense on borrowings | $ 117,808 | 86,840 | 42,370 | ||||||||||
Diversified ABS VI LLC | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Proportion of ownership interest in subsidiary (as a percent) | 51.25% | ||||||||||||
DP Lion HoldCo LLC | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of equity ownership divested | 80% | 80% | |||||||||||
DP Lion Equity Holdco LLC | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Proportion of ownership interest in subsidiary (as a percent) | 20% | ||||||||||||
Percentage of equity ownership divested | 80% | 80% | |||||||||||
Proceeds from divesture of business | $ 30,000 | ||||||||||||
Investment in subsidiary | 7,500 | $ 7,500 | |||||||||||
Credit Facility | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Notional amount | $ 305,000 | $ 435,000 | |||||||||||
Available borrowing | 134,817 | 134,817 | |||||||||||
Borrowings | $ 159,000 | $ 159,000 | $ 56,000 | ||||||||||
Borrowings covenant, maximum total debt to EBITDAX ratio | 3.25 | ||||||||||||
Borrowings covenant, minimum current assets to current liabilities ratio | 1 | ||||||||||||
Interest rate | 8.66% | 8.66% | 7.42% | ||||||||||
Number of sustainability-linked performance targets | performance_target | 3 | 3 | |||||||||||
Sustainability-linked performance targets, TRIR Performance, period for average calculation | 2 years | ||||||||||||
Sustainability-linked performance targets, TRIR Performance, multiplier | 200,000 | ||||||||||||
Credit Facility | Covenant One | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings covenant, maximum leverage ratio | 1.5 | ||||||||||||
Borrowings covenant, borrowing base availability percentage | 25% | ||||||||||||
Credit Facility | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings covenant, borrowing base availability percentage | 15% | ||||||||||||
Credit Facility | Covenant Three | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings covenant, borrowing base availability percentage | 20% | ||||||||||||
Credit Facility | Covenant Four | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings covenant, maximum leverage ratio | shares | 2.5 | ||||||||||||
Credit Facility | Bottom of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Increase (decrease) in interest rate basis for failure to achieve sustainability-linked performance targets | (0.0005) | ||||||||||||
Credit Facility | Bottom of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings covenant, maximum leverage ratio | 1.5 | ||||||||||||
Credit Facility | Bottom of range | Covenant Three | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings covenant, maximum leverage ratio | 2 | ||||||||||||
Credit Facility | Top of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Increase (decrease) in interest rate basis for failure to achieve sustainability-linked performance targets | 0.0005 | ||||||||||||
Credit Facility | Top of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings covenant, maximum leverage ratio | 2 | ||||||||||||
Credit Facility | Top of range | Covenant Three | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings covenant, maximum leverage ratio | 2.5 | ||||||||||||
Credit Facility | SOFR | Bottom of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Interest rate spread | 2.75% | ||||||||||||
Credit Facility | SOFR | Top of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Interest rate spread | 3.75% | ||||||||||||
Credit Facility, letters of credit | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings | $ 11,183 | $ 11,183 | |||||||||||
Term Loan I | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Notional amount | $ 160,000 | ||||||||||||
Borrowings | $ 106,470 | $ 106,470 | $ 120,518 | ||||||||||
Discount percentage | 1% | ||||||||||||
Proceeds from borrowings | $ 158,400 | ||||||||||||
Interest rate | 650% | 6.50% | 650% | ||||||||||
Interest expense on borrowings | $ 7,573 | 8,643 | 9,860 | ||||||||||
Borrowings, fairvalue | 101,706 | ||||||||||||
ABS I Notes | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Notional amount | $ 200,000 | ||||||||||||
Borrowings | $ 100,898 | $ 100,898 | 125,864 | ||||||||||
Interest rate | 500% | 500% | 5% | ||||||||||
Interest expense on borrowings | $ 5,660 | 7,110 | 8,460 | ||||||||||
Borrowings, fairvalue | 94,517 | ||||||||||||
Excess cash flow payments | 7,892 | ||||||||||||
ABS I Notes | Upstream producing Appalachian assets | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of assets hedged | 85% | ||||||||||||
ABS I Notes | Covenant One | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 25% | ||||||||||||
Debt service coverage ratio | 1.25 | ||||||||||||
ABS I Notes | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
ABS I Notes | Covenant Three | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Debt service coverage ratio | 1.15 | ||||||||||||
Production tracking rate | 80% | ||||||||||||
Loan to value ratio | 85% | ||||||||||||
ABS I Notes | Covenant Four | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
ABS I Notes | Bottom of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
ABS I Notes | Bottom of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt service coverage ratio | 1.15 | ||||||||||||
ABS I Notes | Top of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
ABS I Notes | Top of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt service coverage ratio | 1.25 | ||||||||||||
ABS II Notes | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Notional amount | $ 200,000 | ||||||||||||
Borrowings | $ 125,922 | $ 125,922 | 147,458 | ||||||||||
Discount percentage | 2.775% | ||||||||||||
Proceeds from borrowings | $ 183,617 | ||||||||||||
Interest rate | 525% | 5.25% | 525% | ||||||||||
Interest expense on borrowings | $ 8,040 | 9,286 | $ 10,530 | ||||||||||
Borrowings, fairvalue | 119,519 | ||||||||||||
Excess cash flow payments | 0 | ||||||||||||
ABS II Notes | Upstream producing Appalachian assets | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of assets hedged | 85% | ||||||||||||
ABS II Notes | Covenant One | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Debt service coverage ratio | 1.15 | ||||||||||||
ABS II Notes | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
ABS II Notes | Covenant Three | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 0% | ||||||||||||
Debt service coverage ratio | 1.25 | ||||||||||||
ABS II Notes | Covenant Four | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Production tracking rate | 80% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
ABS II Notes | Covenant Five | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Loan to value ratio | 65% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
ABS II Notes | Covenant Six | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
Loan to value ratio | 40% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
Hedging agreement, period | 30 months | ||||||||||||
ABS II Notes | Covenant Seven | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
ABS II Notes | Covenant Eight | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Loan to value ratio | 40% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
ABS II Notes | Bottom of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
ABS II Notes | Bottom of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt service coverage ratio | 1.15 | ||||||||||||
ABS II Notes | Bottom of range | Covenant Six | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Production volumes | 85% | ||||||||||||
ABS II Notes | Bottom of range | Covenant Seven | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Loan to value ratio | 40% | ||||||||||||
ABS II Notes | Top of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
ABS II Notes | Top of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt service coverage ratio | 1.25 | ||||||||||||
ABS II Notes | Top of range | Covenant Six | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Production volumes | 95% | ||||||||||||
ABS III Notes | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Notional amount | $ 365,000 | ||||||||||||
Borrowings | $ 274,710 | $ 274,710 | 319,856 | ||||||||||
Interest rate | 487.50% | 487.50% | 4.875% | ||||||||||
Interest expense on borrowings | $ 14,515 | 15,325 | |||||||||||
Borrowings, fairvalue | 250,158 | ||||||||||||
Excess cash flow payments | $ 0 | ||||||||||||
Increase in interest rate if sustainability score is less than minimum threshold | 0.0005 | ||||||||||||
ABS III Notes | Covenant One | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 0% | ||||||||||||
Debt service coverage ratio | 1.25 | ||||||||||||
ABS III Notes | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
ABS III Notes | Covenant Three | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Debt service coverage ratio | 1.15 | ||||||||||||
ABS III Notes | Covenant Four | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Production tracking rate | 80% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
ABS III Notes | Covenant Five | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Loan to value ratio | 65% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
ABS III Notes | Bottom of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
ABS III Notes | Bottom of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt service coverage ratio | 1.15 | ||||||||||||
ABS III Notes | Top of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
ABS III Notes | Top of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt service coverage ratio | 1.25 | ||||||||||||
ABS IV Notes | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Notional amount | $ 160,000 | ||||||||||||
Borrowings | $ 99,951 | $ 99,951 | 130,144 | ||||||||||
Interest rate | 495% | 495% | 4.95% | ||||||||||
Interest expense on borrowings | $ 5,703 | 6,235 | |||||||||||
Borrowings, fairvalue | 92,345 | ||||||||||||
Excess cash flow payments | $ 0 | ||||||||||||
Increase in interest rate if sustainability score is less than minimum threshold | 0.0005 | ||||||||||||
ABS IV Notes | Covenant One | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 0% | ||||||||||||
Debt service coverage ratio | 1.25 | ||||||||||||
ABS IV Notes | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
ABS IV Notes | Covenant Three | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Debt service coverage ratio | 1.15 | ||||||||||||
ABS IV Notes | Covenant Four | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Production tracking rate | 80% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
ABS IV Notes | Covenant Five | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Loan to value ratio | 65% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
ABS IV Notes | Bottom of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
ABS IV Notes | Bottom of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt service coverage ratio | 1.15 | ||||||||||||
ABS IV Notes | Top of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
ABS IV Notes | Top of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt service coverage ratio | 1.25 | ||||||||||||
ABS V Notes | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Notional amount | $ 445,000 | ||||||||||||
Borrowings | $ 290,913 | $ 290,913 | 378,796 | ||||||||||
Interest rate | 578% | 578% | 5.78% | ||||||||||
Interest expense on borrowings | $ 19,332 | 14,319 | |||||||||||
Borrowings, fairvalue | 274,061 | ||||||||||||
Excess cash flow payments | $ 0 | ||||||||||||
Number of sustainability-linked performance targets | performance_target | 2 | 2 | |||||||||||
Increase (decrease) in interest rate basis for failure to achieve sustainability-linked performance targets | 0.0025 | ||||||||||||
Number of key components of framework | component | 5 | 5 | |||||||||||
Sustainability-linked performance target, reduction in Scope 1 and Scope 2 GHG emissions | MtCO2e | 2.85 | ||||||||||||
Sustainability-linked performance target, reduction in Scope 1 methane emissions | MtCO2e | 1.12 | ||||||||||||
ABS V Notes | Covenant One | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 0% | ||||||||||||
Debt service coverage ratio | 1.25 | ||||||||||||
ABS V Notes | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
ABS V Notes | Covenant Three | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Debt service coverage ratio | 1.15 | ||||||||||||
ABS V Notes | Covenant Four | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Production tracking rate | 80% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
ABS V Notes | Covenant Five | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Loan to value ratio | 65% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
ABS V Notes | Bottom of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
ABS V Notes | Bottom of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt service coverage ratio | 1.15 | ||||||||||||
ABS V Notes | Top of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
ABS V Notes | Top of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt service coverage ratio | 1.25 | ||||||||||||
ABS VI Notes | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Notional amount | $ 235,750 | ||||||||||||
Borrowings | $ 159,357 | $ 159,357 | 212,446 | ||||||||||
Discount percentage | 2.63% | ||||||||||||
Interest rate | 750% | 7.50% | 750% | ||||||||||
Interest expense on borrowings | $ 15,433 | $ 3,300 | |||||||||||
Borrowings, fairvalue | 158,284 | ||||||||||||
Excess cash flow payments | $ 0 | ||||||||||||
Number of sustainability-linked performance targets | performance_target | 2 | 2 | |||||||||||
Increase (decrease) in interest rate basis for failure to achieve sustainability-linked performance targets | 0.0025 | ||||||||||||
Number of key components of framework | component | 5 | 5 | |||||||||||
Sustainability-linked performance target, reduction in Scope 1 and Scope 2 GHG emissions | MtCO2e | 2.85 | ||||||||||||
Sustainability-linked performance target, reduction in Scope 1 methane emissions | MtCO2e | 1.12 | ||||||||||||
ABS VI Notes | Group and Oaktree | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Notional amount | $ 460,000 | ||||||||||||
ABS VI Notes | Covenant One | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Debt service coverage ratio | 1.15 | ||||||||||||
ABS VI Notes | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
ABS VI Notes | Covenant Three | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 0% | ||||||||||||
Debt service coverage ratio | 1.25 | ||||||||||||
ABS VI Notes | Covenant Four | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Production tracking rate | 80% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
ABS VI Notes | Covenant Five | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
Loan to value ratio | 75% | ||||||||||||
Percentage of excess payments to be made if performance metrics are not met | 0% | ||||||||||||
ABS VI Notes | Bottom of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 50% | ||||||||||||
ABS VI Notes | Bottom of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt service coverage ratio | 1.15 | ||||||||||||
ABS VI Notes | Top of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of excess payments to be made if performance metrics are met | 100% | ||||||||||||
ABS VI Notes | Top of range | Covenant Two | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt service coverage ratio | 1.25 | ||||||||||||
ABS VII Class A Notes | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Notional amount | $ 142,000 | ||||||||||||
Interest rate | 8.243% | ||||||||||||
ABS VII Class B Notes | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Notional amount | $ 20,000 | ||||||||||||
Interest rate | 12.725% |
BORROWINGS - Schedule of Maturi
BORROWINGS - Schedule of Maturity of Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 1,324,848 | $ 1,498,166 |
Not later than one year | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 200,822 | 271,096 |
Later than one year and not later than five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 864,264 | 778,887 |
Later than five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 259,762 | $ 448,183 |
BORROWINGS - Schedule of Financ
BORROWINGS - Schedule of Finance Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [abstract] | |||
Interest expense, net of capitalized and income amounts | $ 117,808 | $ 86,840 | $ 42,370 |
Amortization of discount and deferred finance costs | 16,358 | 13,903 | 8,191 |
Other | 0 | 56 | 67 |
Total finance costs | $ 134,166 | $ 100,799 | $ 50,628 |
BORROWINGS - Schedule of Reconc
BORROWINGS - Schedule of Reconciliation of Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [abstract] | |||
Balance at beginning of period | $ 1,440,329 | $ 1,010,355 | $ 717,240 |
Acquired as part of a business combination | 0 | 2,437 | 3,801 |
Sale of equity interest | (154,966) | 0 | 0 |
Proceeds from borrowings | 1,537,230 | 2,587,554 | 1,727,745 |
Repayments of borrowings | (1,547,912) | (2,139,686) | (1,436,367) |
Costs incurred to secure financing | (13,776) | (34,234) | (10,255) |
Amortization of discount and deferred financing costs | 16,358 | 13,903 | 8,191 |
Cash paid for interest | (116,784) | (83,958) | (42,673) |
Finance costs and other | 116,148 | 83,958 | 42,673 |
Balance at end of period | $ 1,276,627 | $ 1,440,329 | $ 1,010,355 |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade payables | $ 49,487 | $ 90,437 |
Other payables | 4,003 | 3,327 |
Total trade and other payables | $ 53,490 | $ 93,764 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other non-current liabilities | |||
Other non-current liabilities | $ 2,224 | $ 5,375 | |
Other current liabilities | |||
Accrued expenses | 99,723 | 140,058 | |
Net revenue clearing | 79,056 | 186,244 | |
Asset retirement obligations - current | 5,402 | 4,529 | $ 3,399 |
Revenue to be distributed | 93,322 | 90,899 | |
Total other current liabilities | 277,503 | 421,730 | |
Decrease in hedge settlements payable | $ 50,541 | ||
Hedge settlements payable | 61,896 | ||
Other current provisions | 21,372 | ||
Current provisions for employee benefits | 15,127 | ||
Current lease operating expense | $ 10,832 |
FAIR VALUE AND FINANCIAL INST_3
FAIR VALUE AND FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value and Financial Instruments [Abstract] | |||
Revaluations related to contingent consideration associated with asset acquisitions | $ 0 | $ 1,036 | $ 9,482 |
Revaluation of contingent consideration | $ 0 | 0 | $ 8,963 |
Carbon | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Contingent consideration payments, business combination | 15,000 | ||
EQT | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Contingent consideration payments, asset acquisition | $ 8,547 |
FAIR VALUE AND FINANCIAL INST_4
FAIR VALUE AND FINANCIAL INSTRUMENTS - Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | $ 3,474,022 | $ 3,830,928 |
Liabilities | (2,875,612) | (3,968,652) |
Financial Instruments | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total | (1,984,345) | (3,067,403) |
Cash and cash equivalents | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 3,753 | 7,329 |
Trade receivables and accrued income | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 190,207 | 296,781 |
Other non-current assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 9,172 | 4,351 |
Other non-current liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | (1,946) | (1,669) |
Other current liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | (272,101) | (417,201) |
Derivative financial instruments at fair value | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | (557,460) | (1,429,966) |
Leases | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | (31,122) | (28,862) |
Borrowings | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | $ (1,324,848) | $ (1,498,166) |
FINANCIAL RISK MANAGEMENT - Sch
FINANCIAL RISK MANAGEMENT - Schedule of Financial Instruments by Type of Interest Rate (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of financial liabilities [line items] | ||
Borrowings | $ 1,324,848 | $ 1,498,166 |
ABS Notes and Term Loan I | Fixed interest rate | ||
Disclosure of financial liabilities [line items] | ||
Borrowings | $ 1,158,221 | $ 1,435,082 |
Interest Rate | 5.67% | 5.70% |
Credit Facility | ||
Disclosure of financial liabilities [line items] | ||
Borrowings | $ 159,000 | $ 56,000 |
Interest Rate | 8.66% | 7.42% |
Credit Facility | Floating interest rate | ||
Disclosure of financial liabilities [line items] | ||
Borrowings | $ 159,000 | $ 56,000 |
Interest Rate | 8.66% | 7.42% |
FINANCIAL RISK MANAGEMENT - Imp
FINANCIAL RISK MANAGEMENT - Impact of a 100 Basis Point Adjustment in the Borrowing Rate and the Impact on Finance Costs (Details) - Interest rate risk - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Reasonably possible change in interest rate | 1% | |
Floating interest rate | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
+100 Basis Points | $ 1,590 | $ 560 |
-100 Basis Points | $ (1,590) | $ (560) |
FINANCIAL RISK MANAGEMENT - Nar
FINANCIAL RISK MANAGEMENT - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of financial liabilities [line items] | |||
Total assets | $ 112,060 | $ 41,675 | |
Revenue | 868,263 | 1,919,349 | $ 1,007,561 |
Receivables from customers, net | 168,913 | 278,030 | |
Joint interest receivables, net | $ 21,294 | 18,751 | |
Leverage target, maximum | 250% | ||
Commodity | |||
Disclosure of financial liabilities [line items] | |||
Revenue | $ 802,399 | 1,873,011 | $ 973,107 |
Derivative financial instrument, objective percent hedged in next 12 months | 65% | ||
Derivative financial instrument, objective percent hedged in months 13 to 24 | 50% | ||
Derivative financial instrument, objective percent hedged in months 25 to 36 | 30% | ||
Upstream natural gas and oil properties | |||
Disclosure of financial liabilities [line items] | |||
Assets pledged, percent | 1 | ||
Upstream natural gas and oil properties | Discount rate | |||
Disclosure of financial liabilities [line items] | |||
Significant unobservable input, assets | 0.10 | ||
Interest rate swaps | |||
Disclosure of financial liabilities [line items] | |||
Total assets | $ 315 | ||
Derivative liabilities | $ 3,228 |
FINANCIAL RISK MANAGEMENT - S_2
FINANCIAL RISK MANAGEMENT - Schedule of Maturity Analysis for non-Derivative Financial Liabilities (Details) - Liquidity risk - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | $ 53,490 | $ 93,764 |
Borrowings | 1,324,848 | 1,498,166 |
Leases | 34,889 | 32,448 |
Other liabilities | 181,003 | 331,677 |
Total | 1,594,230 | 1,956,055 |
Not later than one year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 53,490 | 93,764 |
Borrowings | 200,822 | 271,096 |
Leases | 12,358 | 10,925 |
Other liabilities | 178,779 | 326,302 |
Total | 445,449 | 702,087 |
Later than one year and not later than five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 0 | 0 |
Borrowings | 864,264 | 778,887 |
Leases | 22,531 | 21,523 |
Other liabilities | 2,224 | 5,375 |
Total | 889,019 | 805,785 |
Later than five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 0 | 0 |
Borrowings | 259,762 | 448,183 |
Leases | 0 | 0 |
Other liabilities | 0 | 0 |
Total | $ 259,762 | $ 448,183 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) MMcf in Thousands | Dec. 31, 2023 MMcf |
Oil and Gas, Delivery Commitment, Year One | |
Disclosure of other provisions [line items] | |
Oil and Gas, Delivery Commitment, Quantity Committed | 70,769 |
Oil and Gas, Delivery Commitment, Year Two | |
Disclosure of other provisions [line items] | |
Oil and Gas, Delivery Commitment, Quantity Committed | 16,658 |
Oil and Gas, Delivery Commitment, Year Three | |
Disclosure of other provisions [line items] | |
Oil and Gas, Delivery Commitment, Quantity Committed | 0 |
Oil and Gas, Delivery Commitment, After Year Three | |
Disclosure of other provisions [line items] | |
Oil and Gas, Delivery Commitment, Quantity Committed | 360,114 |