Cover
Cover | 6 Months Ended |
Jun. 30, 2024 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity File Number | 001-41870 |
Entity Registrant Name | Diversified Energy Company PLC |
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 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Document Fiscal Year Focus | 2024 |
Entity Central Index Key | 0001922446 |
Document Period End Date | Aug. 15, 2024 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Profit or loss [abstract] | |||
Revenue | $ 368,674 | $ 487,305 | $ 868,263 |
Operating expense | (196,112) | (227,299) | (440,562) |
Depreciation, depletion and amortization | (119,220) | (115,036) | (224,546) |
Gross profit | 53,342 | 144,970 | 203,155 |
General and administrative expense | (58,326) | (55,156) | (119,722) |
Allowance for expected credit losses | 0 | 0 | (8,478) |
Gain (loss) on natural gas and oil property and equipment | 7,210 | 7,729 | 24,146 |
Gain (loss) on sale of equity interest | 0 | 0 | 18,440 |
Unrealized gain (loss) on investment | 2,433 | 0 | 4,610 |
Gain (loss) on derivative financial instruments | (2,268) | 812,113 | 1,080,516 |
Impairment of proved properties | 0 | 0 | (41,616) |
Operating profit (loss) | 2,391 | 909,656 | 1,161,051 |
Finance costs | (60,581) | (67,736) | (134,166) |
Accretion of asset retirement obligation | (14,667) | (13,991) | (26,926) |
Loss on early retirement of debt | (10,649) | 0 | 0 |
Other income (expense) | 1,254 | 327 | 385 |
Income (loss) before taxation | (82,252) | 828,256 | 1,000,344 |
Income tax benefit (expense) | 97,997 | (197,324) | (240,643) |
Net income (loss) | 15,745 | 630,932 | 759,701 |
Other comprehensive income (loss) | (1,905) | (88) | (270) |
Total comprehensive income (loss) | 13,840 | 630,844 | 759,431 |
Net income (loss) attributable to owners of the parent | |||
Diversified Energy Company PLC | 15,061 | 629,985 | 758,018 |
Non-controlling interest | 684 | 947 | 1,683 |
Net income (loss) | $ 15,745 | $ 630,932 | $ 759,701 |
Earnings (loss) per share attributable to Diversified Energy Company PLC | |||
Earnings (loss) per share - basic (in dollar per share) | $ 0.32 | $ 13.61 | $ 16.07 |
Earnings (loss) per share - diluted (in dollar per share) | $ 0.32 | $ 13.43 | $ 15.95 |
Weighted average shares outstanding - basic (in shares) | 47,202 | 46,303 | 47,165 |
Weighted average shares outstanding - diluted (in shares) | 47,561 | 46,892 | 47,514 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Financial Position (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Non-current assets: | ||
Natural gas and oil properties, net | $ 2,718,258 | $ 2,490,375 |
Property, plant and equipment, net | 455,083 | 456,208 |
Intangible assets | 15,664 | 19,351 |
Restricted cash | 36,374 | 25,057 |
Derivative financial instruments | 39,617 | 24,401 |
Deferred tax asset | 248,868 | 144,860 |
Other non-current assets | 13,637 | 9,172 |
Total non-current assets | 3,527,501 | 3,169,424 |
Current assets: | ||
Trade receivables, net | 180,017 | 190,207 |
Cash and cash equivalents | 3,483 | 3,753 |
Restricted cash | 18,602 | 11,195 |
Derivative financial instruments | 70,313 | 87,659 |
Other current assets | 16,547 | 11,784 |
Total current assets | 288,962 | 304,598 |
Total assets | 3,816,463 | 3,474,022 |
Shareholders' equity: | ||
Share capital | 12,793 | 12,897 |
Share premium | 1,208,192 | 1,208,192 |
Treasury reserve | (109,322) | (102,470) |
Share-based payment and other reserves | 15,889 | 14,442 |
Retained earnings (accumulated deficit) | (591,624) | (547,255) |
Equity attributable to owners of the parent | 535,928 | 585,806 |
Non-controlling interest | 12,370 | 12,604 |
Total equity | 548,298 | 598,410 |
Non-current liabilities: | ||
Asset retirement obligations | 510,935 | 501,246 |
Leases | 29,309 | 20,559 |
Borrowings | 1,442,986 | 1,075,805 |
Deferred tax liability | 10,879 | 13,654 |
Derivative financial instruments | 611,576 | 623,684 |
Other non-current liabilities | 4,491 | 2,224 |
Total non-current liabilities | 2,610,176 | 2,237,172 |
Current liabilities: | ||
Trade and other payables | 60,482 | 53,490 |
Taxes payable | 42,624 | 50,226 |
Leases | 13,712 | 10,563 |
Borrowings | 211,574 | 200,822 |
Derivative financial instruments | 99,790 | 45,836 |
Other current liabilities | 229,807 | 277,503 |
Total current liabilities | 657,989 | 638,440 |
Total liabilities | 3,268,165 | 2,875,612 |
Total equity and liabilities | $ 3,816,463 | $ 3,474,022 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Changes in Equity (Unaudited) - 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, 2022 | $ (137,724) | $ (152,688) | $ 11,503 | $ 1,052,959 | $ (100,828) | $ 17,650 | $ (1,133,972) | $ 14,964 |
Net income (loss) | 630,932 | 629,985 | 629,985 | 947 | ||||
Other comprehensive income (loss) | (88) | (88) | (88) | |||||
Total comprehensive income (loss) | 630,844 | 629,897 | 629,897 | 947 | ||||
Issuance of share capital (equity placement) | 156,788 | 156,788 | 1,555 | 155,233 | ||||
Issuance of share capital (equity compensation) | (1,807) | (1,807) | 198 | (2,005) | ||||
Issuance of EBT shares (equity compensation) | 8,230 | (8,230) | ||||||
Repurchase of shares (share buyback program) | (213) | (213) | (2) | (213) | 2 | |||
Dividends | (84,029) | (84,029) | (84,029) | |||||
Distributions to non-controlling interest owners | (2,861) | (2,861) | ||||||
Transactions with shareholders | 67,878 | 70,739 | 1,553 | 155,233 | 8,017 | (8,030) | (86,034) | (2,861) |
Equity at end of period at Jun. 30, 2023 | 560,998 | 547,948 | 13,056 | 1,208,192 | (92,811) | 9,620 | (590,109) | 13,050 |
Equity at beginning 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) | 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 |
Net income (loss) | 15,745 | 15,061 | 15,061 | 684 | ||||
Other comprehensive income (loss) | (1,905) | (1,905) | (1,905) | |||||
Total comprehensive income (loss) | 13,840 | 13,156 | 13,156 | 684 | ||||
Issuance of share capital (equity compensation) | 2,609 | 2,609 | 5,167 | (2,558) | ||||
Issuance of EBT shares (equity compensation) | 0 | 3,824 | (3,824) | |||||
Repurchase of shares (EBT) | (2,582) | (2,582) | (2,582) | |||||
Repurchase of shares (share buyback program) | (8,094) | (8,094) | (104) | (8,094) | 104 | |||
Dividends | (54,967) | (54,967) | (54,967) | |||||
Distributions to non-controlling interest owners | (918) | (918) | ||||||
Transactions with shareholders | (63,952) | (63,034) | (104) | (6,852) | 1,447 | (57,525) | (918) | |
Equity at end of period at Jun. 30, 2024 | $ 548,298 | $ 535,928 | $ 12,793 | $ 1,208,192 | $ (109,322) | $ 15,889 | $ (591,624) | $ 12,370 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 15,745 | $ 630,932 | $ 759,701 |
Cash flows from operations reconciliation: | |||
Depreciation, depletion and amortization | 119,220 | 115,036 | 224,546 |
Accretion of asset retirement obligations | 14,667 | 13,991 | 26,926 |
Impairment of proved properties | 0 | 0 | 41,616 |
Income tax (benefit) expense | (97,997) | 197,324 | 240,643 |
(Gain) loss on fair value adjustments of unsettled derivative financial instruments | 80,117 | (760,933) | (905,695) |
Asset retirement costs | (4,300) | (2,077) | (5,961) |
(Gain) loss on natural gas and oil properties and equipment | (7,210) | (7,729) | (24,146) |
(Gain) loss on sale of equity interest | 0 | 0 | (18,440) |
Unrealized (gain) loss on investment | (2,433) | 0 | (4,610) |
Finance costs | 60,581 | 67,736 | 134,166 |
Loss on early retirement of debt | (10,649) | 0 | 0 |
Hedge modifications | 0 | 17,446 | 26,686 |
Non-cash equity compensation | 3,669 | 4,417 | 6,494 |
Working capital adjustments: | |||
Change in trade receivables and other current assets | 8,247 | 93,968 | 104,571 |
Change in other non-current assets | (2,920) | (259) | 1,661 |
Change in trade and other payables and other current liabilities | (34,443) | (189,636) | (183,530) |
Change in other non-current liabilities | 125 | (5,733) | (6,236) |
Cash generated from operations | 163,717 | 174,483 | 418,392 |
Cash paid for income taxes | (2,907) | (1,917) | (8,260) |
Net cash provided by operating activities | 160,810 | 172,566 | 410,132 |
Cash flows from investing activities: | |||
Consideration for asset acquisitions | (176,653) | (262,329) | (262,329) |
Proceeds from divestitures | 9,933 | 44,333 | 95,749 |
Expenditures on natural gas and oil properties and equipment | (20,848) | (32,332) | (74,252) |
Proceeds on disposals of natural gas and oil properties and equipment | 4,470 | 1,831 | 4,083 |
Deferred consideration payments | (550) | (2,620) | |
Net cash used in investing activities | (183,648) | (250,017) | (239,369) |
Cash flows from financing activities: | |||
Repayment of borrowings | (1,076,897) | (782,990) | (1,547,912) |
Proceeds from borrowings | 1,238,348 | 840,230 | 1,537,230 |
Penalty on early retirement of debt | (1,751) | 0 | 0 |
Cash paid for interest | (47,632) | (60,215) | (116,784) |
Debt issuance cost | (13,988) | (1,730) | (13,776) |
(Increase) decrease in restricted cash | (12,571) | 14,200 | 11,792 |
Hedge modifications associated with ABS Notes | 0 | 0 | (6,376) |
Proceeds from equity issuance, net | 0 | 156,788 | 156,788 |
Proceeds from lease modifications | 8,568 | 0 | 0 |
Principal element of lease payments | (6,411) | (4,957) | (12,169) |
Dividends to shareholders | (54,967) | (84,029) | (168,041) |
Distributions to non-controlling interest owners | (918) | (2,861) | (4,043) |
Repurchase of shares by the EBT | (2,582) | 0 | 0 |
Repurchase of shares | (6,631) | (106) | (11,048) |
Net cash provided by (used in) financing activities | 22,568 | 74,330 | (174,339) |
Net change in cash and cash equivalents | (270) | (3,121) | (3,576) |
Cash and cash equivalents, beginning of period | 3,753 | 7,329 | 7,329 |
Cash and cash equivalents, end of period | $ 3,483 | $ 4,208 | $ 3,753 |
General Information
General Information | 6 Months Ended |
Jun. 30, 2024 | |
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”) 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 Central Region and Appalachian Basin 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 June 30, 2024 the principal trading market for the Company’s ordinary shares was the LSE. |
Basis of Preparation
Basis of Preparation | 6 Months Ended |
Jun. 30, 2024 | |
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 unaudited interim condensed consolidated financial statements for the six months ended June 30, 2024 (the " Interim Condensed Consolidated Financial Statements ") have been prepared in accordance with the International Accounting Standard 34, ‘Interim Financial Reporting’ (“IAS 34”) as issued by the International Accounting Standards Board (the “IASB”). The Interim Condensed Consolidated Financial Statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual financial statements for the year ended December 31, 2023 , which were 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. The annual financial statements for the year ending December 31, 2024 will be prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Unless otherwise stated, the Interim Condensed Consolidated 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 subsidiary has 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 Interim Condensed Consolidated 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, the Group’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 Interim Condensed Consolidated Financial Statements have been prepared on the going concern basis of accounting. The Directors closely monitor and carefully manage the Group’s liquidity risk. The Group’s 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. In assessing the appropriateness of the going concern assumption over the next twelve months, management have stress tested the Group’s most recent financial projections to incorporate a range of potential future outcomes by considering the Group’s principal risks, potential downside pressures on commodity prices, long-term demand and availability of loan facility; management has also considered cash preservation measures, including reduced capital expenditure and shareholder distributions. This assessment confirmed that the Group has adequate cash and other liquid resources to enable it to meet its obligations as they fall due in order to continue its operations over the twelve months from the issuance date of these Interim Condensed Consolidated Financial Statements . Therefore, the Directors consider it appropriate to continue to adopt the going concern basis of accounting in preparing these unaudited Interim Condensed Consolidated Financial Statements . Prior Period Reclassifications 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 $6,830 in “proceeds on disposals of natural gas and oil properties and equipment” to “proceeds from divestitures” for the six months ended June 30, 2023 . The Group reclassified $1,520 in “contingent consideration payments” to “ deferred consideration payments” for the six months ended June 30, 2023 . The Group reclassified $800 in “principal element of lease payments” to “cash paid for interest” for the six months ended June 30, 2023 . Basis of Consolidation The Interim Condensed Consolidated Financial Statements for the six months ended June 30, 2024 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 ›DP Lion Equity Holdco LLC (c) ›Riverside Land LLC (d) ›Diversified Production LLC ›DP Lion HoldCo LLC (c) ›Splendid Land LLC (d) ›Diversified ABS Holdings LLC ›Diversified ABS VIII Holdings LLC ›Next LVL Energy, LLC ›Diversified ABS LLC ›Diversified ABS VIII LLC ›Diversified Midstream LLC ›Diversified ABS Phase II Holdings LLC ›Diversified ABS III Upstream LLC ›Cranberry Pipeline Corporation ›Diversified ABS Phase II LLC ›Diversified ABS V Upstream II LLC ›Coalfield Pipeline Company ›Diversified ABS Phase IV Holdings LLC ›DP Mustang Equity Holdco LLC ›DM Bluebonnet LLC ›Diversified ABS Phase IV LLC ›DP Mustang Holdco LLC ›Black Bear Midstream Holdings LLC ›DP Bluegrass Holdings LLC ›DP RBL Co LLC ›Black Bear Midstream LLC ›DP Bluegrass LLC ›DP Legacy Central LLC ›Black Bear Liquids LLC ›Chesapeake Granite Wash Trust (a) ›Diversified Energy Marketing LLC ›Black Bear Liquids Marketing LLC ›BlueStone Natural Resources II LLC ›OCM Denali Holdings LLC ›DM Pennsylvania Holdco LLC ›Sooner State Joint ABS Holdings LLC (b) ›DP Tapstone Energy Holdings LLC ›DGOC Holdings Sub III LLC ›Diversified ABS Phase VI Holdings LLC ›DP Legacy Tapstone LLC ›Diversified Energy Group LLC ›Diversified ABS Phase VI LLC ›Giant Land, LLC (d) ›Diversified Energy Company LLC ›Diversified ABS VI Upstream LLC ›Link Land LLC (d) ›Oaktree ABS VI Upstream LLC ›Old Faithful Land LLC (d) (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; owned 48.75% by OCM Denali Holdings 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 June 30, 2024 . Refer to Note 4 for additional information. (d) Owned 55% by Diversified Energy Company PLC. |
Material Accounting Policies
Material Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Significant Accounting Policies [Abstract] | |
Material Accounting Policies | (Amounts in thousands, except per share and per unit data) The preparation of the Interim Condensed Consolidated Financial Statements in compliance with IAS 34 requires management to make estimates and exercise judgment in applying the Group’s accounting policies. In preparing the Interim Condensed Consolidated Financial Statements , the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those applicable to the Group Financial Statements for the year ended December 31, 2023 . Restricted 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 cash reserves for interest payments related to its asset-backed securitizations discussed in Note 12 . These cash 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. The cash reserve is managed and held by an indenture trustee who monitors the cash reserve month to month ensuring the proper quantum is maintained. The 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. June 30, 2024 December 31, 2023 Cash restricted by asset-backed securitizations $ 54,618 $ 35,870 Other restricted cash 358 382 Total restricted cash $ 54,976 $ 36,252 Classified as: Current asset $ 18,602 $ 11,195 Non-current asset 36,374 25,057 Total $ 54,976 $ 36,252 New or Amended Accounting Standards - Adopted The following accounting standards, amendment and interpretations became effective in the current year: • Classification of Liabilities as Current or Non-Current and Non-Current Liabilities with Covenants: Amendment to IAS 1 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 Interim Condensed Consolidated Financial Statements |
Acquisitions & Divestitures
Acquisitions & Divestitures | 6 Months Ended |
Jun. 30, 2024 | |
Acquisitions And Divestitures [Abstract] | |
ACQUISITIONS AND DIVESTITURES | Note 4 - Acquisitions & 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. 2024 Acquisitions Oaktree Capital Management, L.P. (“Oaktree”) Working Interest Asset Acquisition On June 6, 2024 the Group acquired Oaktree’s proportionate working interest in the East Texas, Tapstone, Tanos and Indigo acquisitions. The Group assessed the acquired assets and determined that this transaction was considered an asset acquisition rather than a business combination. When making this determination, management evaluated IFRS 3 a nd concluded that the acquired assets did not meet the definition of a business. The Group paid purchase consideration of $220,763 , inclusive of transaction costs of $1,166 and customary purchase price adjustments. As part of this transaction, the Group assumed Oaktree’s proportionate debt of $132,576 associated with the ABS VI Notes. The Group funded the purchase through a combination of existing and expanded liquidity and issued approximately $83,348 in notes payable to Oaktree. Refer to Note 12 for additional information regarding the Group’s borrowings. In the period from its acquisition to June 30, 2024 the Oaktree assets increased the Group’s hedged revenue and operating expense by $14,845 and $4,907 , respectively. The acquired assets and liabilities were as follows: Consideration paid Cash consideration $ 176,653 Oaktree Seller's Note 83,348 Elimination of Oaktree liability (39,238) Total consideration $ 220,763 Net assets acquired Natural gas and oil properties $ 314,714 Asset retirement obligation, asset portion 63,770 Property, plant and equipment 457 Restricted cash 6,153 Derivative financial instruments, net 39,841 Asset retirement obligation, liability portion (63,770) Borrowings (132,576) Other current liabilities (7,826) Net assets acquired $ 220,763 2024 Divestitures During the six months ended June 30, 2024 , the Group divested certain non-core undeveloped acreage across its operating footprint for consideration of approximately $9,933 . 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 $6,852 . 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 9 and 12 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 . 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. 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 . Other Divestitures 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 announced the sale of 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 our 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 . Subsequent Events On July 10, 2024 the Group announced it entered into a conditional agreement to acquire certain upstream assets and related infrastructure in the East Texas area of the Central Region from Crescent Pass Energy (“Crescent Pass”) for an estimated gross purchase price of $106,000 before customary purchase price adjustments. The transaction is expected to be funded through a combination of the issuance of approximately 2,400 new U.S. dollar- denominated ordinary shares direct to Crescent Pass and a senior secured bank facility supported by the acquired assets, along with existing and expanded liquidity from the Group’s recently increased borrowing capacity on its Credit Facility. Refer to Notes 9 and 12 for additional information regarding share capital and debt. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue [abstract] | |
Revenue | Note 5 - 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: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Natural gas $ 209,008 $ 334,588 $ 557,167 NGLs 70,935 67,159 141,321 Oil 56,185 54,294 103,911 Total commodity revenue $ 336,128 $ 456,041 $ 802,399 Midstream 17,416 16,662 30,565 Other (a) 15,130 14,602 35,299 Total revenue $ 368,674 $ 487,305 $ 868,263 (a) For the six months ended June 30, 2024 and 2023 and the year ended December 31, 2023 , other includes $7,776 , $11,550 and $28,360 in third-party plugging revenue and $7,354 , $3,052 and $6,939 in other revenue, respectively. 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 six months ended June 30, 2024 and 2023 and the year ended December 31, 2023 , no customers individually comprised more than 10% of total revenues. |
Expenses by Nature
Expenses by Nature | 6 Months Ended |
Jun. 30, 2024 | |
Analysis of income and expense [abstract] | |
Expenses by Nature | Note 6 - Expenses by Nature (Amounts in thousands, except per share and per unit data) The following table provides a detail of the Group's expenses for the periods presented: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 LOE (a) $ 98,511 $ 111,637 $ 213,078 Production taxes (b) 19,993 31,307 61,474 Midstream operating expense (c) 35,563 34,391 69,792 Transportation expense (d) 42,045 49,964 96,218 Total operating expense $ 196,112 $ 227,299 $ 440,562 Depreciation and amortization 29,471 27,503 56,453 Depletion 89,749 87,533 168,093 Total depreciation, depletion and amortization $ 119,220 $ 115,036 $ 224,546 Employees administrative costs and professional services (e) 40,482 38,497 78,659 Costs associated with acquisitions (f) 3,724 8,866 16,775 Other adjusting costs (g) 10,451 3,376 17,794 Non-cash equity compensation (h) 3,669 4,417 6,494 Total G&A $ 58,326 $ 55,156 $ 119,722 Recurring allowance for credit losses (i) — — 8,478 Total expense $ 373,658 $ 397,491 $ 793,308 Aggregate remuneration (including Directors): Wages and salaries $ 62,662 $ 61,135 $ 124,834 Payroll taxes 5,456 5,238 10,163 Benefits 14,778 12,560 31,912 Total employees and benefits expense $ 82,896 $ 78,933 $ 166,909 (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 the Group’s administrative and corporate staff, costs of maintaining administrative and corporate offices, costs of managing the Group’s 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 various 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 systems. (g) Other adjusting costs include items that affect the comparability of results or that are not indicative of trends in the ongoing business. These costs consist of one time projects, contemplated transactions or financing arrangements, contract terminations, deal breakage and/or sourcing costs for acquisitions, and unused firm transportation. (h) Non-cash equity compensation reflects the expense recognition related to share-based compensation provided to certain key members of the management team. (i) Allowance for credit losses consists of the recognition and reversal of credit losses. |
Taxation
Taxation | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax [Abstract] | |
Taxation | Note 7 - 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 allocatable 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 Interim Condensed Consolidated 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 six months ended June 30, 2024 and 2023 , income tax expense was recognized based on management’s estimate of the weighted average annual effective tax rate expected for the full financial year. The estimate of the annual effective tax rate is subject to variation due to several factors, including variability in forecasted pre-tax book income or loss by jurisdiction, tax credits, and changes in tax laws. Additionally, the effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. For example, the impact of tax credits on our effective tax rate is greater when our pre-tax income or loss is lower. The estimated average annual tax rate used for the six months ended June 30, 2024 was 119.1% , compared to 23.8% for the six months ended June 30, 2023 . For the six months ended June 30, 2024 , we reported tax benefit of $97,997 , a change of $295,321 , compared to an expense of $197,324 in 2023 . The June 30, 2024 effective tax rate was primarily impacted by the recognition of the federal marginal well tax credit available to qualified producers and due to management’s estimate of the annual effective tax rate expected for the full financial year as previously discussed. The federal government provides these credits to encourage companies to continue producing 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 programmes, law enforcement and other similar public services. The Group has considered the impact of Pillar Two income taxes and does not expect the global minimum tax rate to impact current tax expense in the current year. The provision for income taxes in the Consolidated Statement of Comprehensive Income is summarized below: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Current income tax (benefit) expense Federal (benefit) expense $ 4,568 $ 1,993 $ 7,289 State (benefit) expense 4,217 2,128 5,902 Foreign - UK (benefit) expense — 17 — Total current income tax (benefit) expense $ 8,785 $ 4,138 $ 13,191 Deferred income tax (benefit) expense Federal (benefit) expense $ (98,109) $ 172,067 $ 202,133 State (benefit) expense (8,722) 21,119 25,460 Foreign - UK (benefit) expense 49 — (141) Total deferred income tax (benefit) expense $ (106,782) $ 193,186 $ 227,452 Total income tax (benefit) expense $ (97,997) $ 197,324 $ 240,643 The effective tax rate is calculated on the face of the Statement of Comprehensive Income by dividing the amount of recorded income tax benefit (expense) by the income (loss) before taxation as follows: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Income (loss) before taxation $ (82,252) $ 828,256 $ 1,000,344 Income tax benefit (expense) 97,997 (197,324) (240,643) Effective tax rate 119.1 % 23.8 % 24.1 % The differences between the statutory U.S. federal income tax rate and the effective tax rates are summarized as follows: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Expected tax at statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 2.1 % 3.0 % 3.1 % Federal credits 96.9 % — % — % Other, net (0.9) % (0.2) % — % Effective tax rate 119.1 % 23.8 % 24.1 % |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of detailed information about financial instruments [abstract] | |
Derivative Financial Instruments | Note 8 - 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 June 30, 2024 , 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: Natural Gas Contracts Weighted Average Price per Mcfe (a) Volume Sold Purchased Sold Purchased Basis Fair Value at (MMBtu) Swaps Puts Puts Calls Calls Differential June 30, 2024 For the remainder of 2024 Swaps 108,861 $ 3.42 $ — $ — $ — $ — $ — $ 51,068 Stand-alone calls, net (b) — — — — — — — (7,254) Basis swaps 95,228 — — — — — (0.68) 10,808 2025 Swaps 175,398 $ 3.15 $ — $ — $ — $ — $ — $ (67,874) Two-way collars 3,650 — — 3.59 3.79 — — 320 Stand-alone calls, net (b) 2,164 — — — 3.62 — — (16,680) Basis swaps 105,478 — — — — — (0.77) (1,359) 2026 Swaps 139,307 $ 3.19 $ — $ — $ — $ — $ — $ (89,444) Two-way collars 3,650 — — — 5.13 3.08 — (309) Stand-alone calls, net (b) 12,477 — — — 3.59 — — (30,375) Basis swaps 21,071 — — — — — (0.53) (1,056) Natural Gas Contracts Weighted Average Price per Mcfe (a) Volume Sold Purchased Sold Purchased Basis Fair Value at (MMBtu) Swaps Puts Puts Calls Calls Differential June 30, 2024 2027 Swaps 122,503 $ 3.22 $ — $ — $ — $ — $ — $ (74,898) Two-way collars 6,409 — — 3.52 5.87 — — 910 Stand-alone calls, net (b) 10,950 — — — 3.59 — — (28,808) Basis swaps 8,110 — — — — — (0.39) (404) 2028 Swaps 99,245 $ 2.85 $ — $ — $ — $ — $ — $ (83,878) Two-way collars 10,502 — — 4.10 6.61 — — 6,023 Stand-alone calls, net (b) — — — — — — — (1,527) Purchased puts 7,978 — — 3.08 — — — 2,925 Sold puts 7,978 — 3.08 — — — — (2,925) Basis swaps 7,557 — — — — — (0.39) (461) 2029 Swaps 36,066 $ 2.36 $ — $ — $ — $ — $ — $ (39,917) Two-way collars 28,251 — — 3.72 5.01 — — 5,728 Purchased puts 30,066 — — 2.80 — — — 9,732 Sold puts 30,066 — 1.85 — — — — (2,165) Basis swaps 3,594 — — — — — (0.39) (343) 2030 Swaps 11,726 $ 2.89 $ — $ — $ — $ — $ — $ (7,327) Two-way collars 30,099 — — 3.59 4.21 — — 3,301 Purchased puts 14,492 — — 2.81 — — — 5,146 Sold puts 14,492 — 1.85 — — — — (1,269) 2031 Swaps 5,909 $ 3.70 $ — $ — $ — $ — $ — $ 310 Two-way collars 38,595 — — 3.59 4.19 — — 3,817 2032 Swaps 2,824 $ 3.70 $ — $ — $ — $ — $ — $ 274 Two-way collars 9,190 — — 3.59 4.19 — — (625) Swaptions 10/1/2024-9/30/2028 (c) 14,610 $ 2.79 $ — $ — $ — $ — $ — $ (11,287) 1/1/2025-12/31/2029 (d) 36,520 2.65 — — — — — (33,024) 4/1/2026-3/31/2030 (e) 82,171 2.46 — — — — — (92,714) 4/1/2030-3/31/2032 (f) 42,627 2.46 — — — — — (43,602) Total natural gas contracts 1,379,814 $ (539,163) (a) Rates have been converted from Btu to Mcfe using a Btu conversion factor of 1.03 . (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 June 30, 2024 For the Remainder of 2024 Swaps 1,809 $ 37.24 $ — $ (4,634) Stand-alone calls 460 — 31.29 (2,736) 2025 Swaps 3,347 $ 33.81 $ — $ (10,860) Stand-alone calls 913 — 30.07 (6,369) 2026 Swaps 3,050 $ 32.02 $ — $ (6,615) Stand-alone calls 913 — 27.83 (1,862) 2027 Swaps 1,916 $ 33.21 $ — $ (3,820) 2028 Swaps 267 $ 28.91 $ — $ (686) Total NGLs contracts 12,675 $ (37,582) Oil Contracts Weighted Average Price per Bbl Volume Purchased Sold Fair Value at (MBbls) Swaps Puts Calls June 30, 2024 For the Remainder of 2024 Swaps 372 $ 64.52 $ — $ — $ (5,370) Two-way collars 156 — 70.00 91.20 66 Sold calls 92 — — 70.00 (942) 2025 Swaps 739 $ 61.07 $ — $ — $ (8,630) Sold calls 110 — — 70.50 (1,015) 2026 Swaps 600 $ 61.07 $ — $ — $ (5,206) Sold calls 110 — — 67.50 (1,124) 2027 Swaps 550 $ 62.34 $ — $ — $ (2,795) Total oil contracts 2,729 $ (25,016) Interest Principal Hedged Fair Value at Fixed Rate June 30, 2024 2024 SOFR interest rate swap $ 5,520 4.15 % $ 325 Net fair value of derivative financial instruments as of June 30, 2024 $ (601,436) 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 reporting date as follows: Derivative Financial Instruments Consolidated Statement of Financial Position June 30, 2024 December 31, 2023 Assets: Non-current assets Derivative financial instruments $ 39,617 $ 24,401 Current assets Derivative financial instruments 70,313 87,659 Total assets $ 109,930 $ 112,060 Liabilities: Non-current liabilities Derivative financial instruments $ (611,576) $ (623,684) Current liabilities Derivative financial instruments (99,790) (45,836) Total liabilities $ (711,366) $ (669,520) Net assets (liabilities): Net assets (liabilities) - non-current Derivative financial instruments $ (571,959) $ (599,283) Net assets (liabilities) - current Derivative financial instruments (29,477) 41,823 Total net assets (liabilities) $ (601,436) $ (557,460) 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 to the Group’s recognized assets and liabilities as of the periods indicated: As of June 30, 2024 Presented without Effects of Netting Effects of Netting As Presented with Effects of Netting Non-current assets $ 128,365 $ (88,748) $ 39,617 Current assets 112,331 (42,018) 70,313 Total assets $ 240,696 $ (130,766) $ 109,930 Non-current liabilities $ (700,325) $ 88,749 $ (611,576) Current liabilities (141,807) 42,017 (99,790) Total liabilities $ (842,132) $ 130,766 $ (711,366) Total net assets (liabilities) $ (601,436) $ — $ (601,436) As of 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) The Group recorded the following gain (loss) on derivative financial instruments in the Consolidated Statement of Comprehensive Income for the periods presented: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Net gain (loss) on commodity derivatives settlements (a) $ 77,749 $ 54,525 $ 178,064 Net gain (loss) on interest rate swaps (a) 100 (2,824) (2,722) Gain (loss) on foreign currency hedges (a) — (521) (521) Total gain (loss) on settled derivative instruments $ 77,849 $ 51,180 $ 174,821 Gain (loss) on fair value adjustments of unsettled financial instruments (b) (80,117) 760,933 905,695 Total gain (loss) on derivative financial instruments $ (2,268) $ 812,113 $ 1,080,516 (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 & 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 I and Credit Facility are reflected in the Group’s Statement of Financial Position. 2023 Modifications & 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. 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 six months ended June 30, 2023, they are presented as an operating activity in the Consolidated Statement of Cash Flows. In August 2023, the Group monetized an additional $9,240 in purchased puts associated with its ABS hedge books and transitioned the monetized positions into long-dated swap agreements. 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 12 for additional information regarding ABS VII. |
Share Capital
Share Capital | 6 Months Ended |
Jun. 30, 2024 | |
Share Capital, Reserves, And Other Equity Interest [Abstract] | |
Share Capital | Note 9 - 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 June 30, 2024 , 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 was 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 During the six months ended June 30, 2024 , there were no issuances 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 4 . 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 Statements as Treasury Shares. During the six months ended June 30, 2024 , the EBT reissu ed 116 shares to settle vested share-based awards and ESPP purchases. During the six months ended June 30, 2024 the EBT purchased 197 shares at an average price per share of $13.10 (approximately £10.41 ) for a total consideration of $2,582 (approximately £2,053 ). As of June 30, 2024 , the EBT held 448 shares. During the six months ended June 30, 2023 , the EBT reissued 296 shares to settle vested share-based awards and ESPP purchases. No shares were purchased by the EBT during the six months ended June 30, 2023 . As of June 30, 2023 , the EBT held 406 shares. Repurchase of Shares During the six months ended June 30, 2024 , the Group repurchased 619 treasury shares at an average price per share of $13.09 totaling $8,094 . During the six months ended June 30, 2023 , the Group repurchased 10 treasury shares at an average price per share of $21.30 totaling $213 . 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 January 1, 2024 47,556 $ 12,897 $ 1,208,192 Issuance of EBT shares (equity compensation) 116 — — Repurchase of shares (EBT) (197) — — Repurchase of shares (share buyback program) (619) (104) — Balance as of June 30, 2024 46,856 $ 12,793 $ 1,208,192 Balance as of January 1, 2023 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) 296 — — Repurchase of shares (share buyback program) (10) (2) — Balance as of June 30, 2023 48,155 $ 13,056 $ 1,208,192 Balance as of January 1, 2023 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 |
Dividends
Dividends | 6 Months Ended |
Jun. 30, 2024 | |
Dividends1 [Abstract] | |
Dividends | Note 10 - 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 15, 2023 $ 0.875 £ 0.6844 March 1, 2024 March 28, 2024 47,221 $ 41,319 April 10, 2024 $ 0.290 £ 0.2283 May 24, 2024 June 28, 2024 47,063 13,648 Paid during the six months ended June 30, 2024 $ 54,967 Dividend per Share Record Date Pay Date Shares Outstanding Gross Dividends Paid Date Dividends Declared USD GBP November 14, 2022 $ 0.875 £ 0.7220 March 3, 2023 March 28, 2023 47,869 $ 41,885 March 21, 2023 $ 0.875 £ 0.6860 May 26, 2023 June 30, 2023 48,165 42,144 Paid during the six months ended June 30, 2023 $ 84,029 May 9, 2023 $ 0.875 £ 0.7040 September 1, 2023 September 29, 2023 48,157 $ 42,137 September 1, 2023 $ 0.875 £ 0.6840 December 1, 2023 December 29, 2023 47,857 41,875 Paid during the year ended December 31, 2023 $ 168,041 On May 9, 2024 the Group proposed a dividend of $0.29 per share. The dividend will be paid on September 26, 2024 to shareholders on the register on August 30, 2024 . This dividend was not required to be approved by shareholders, thereby qualifying it as an “interim” dividend. No liability was recorded in the Interim Condensed Consolidated Financial Statements in respect of this interim dividend as of June 30, 2024 . Dividends are waived on shares held in the EBT. Subsequent Events On August 15, 2024 the Directors recommended a dividend of $0.29 per share. The dividend will be paid on December 27, 2024 to shareholders on the register on November 29, 2024 . This dividend was not required to be approved by shareholders, thereby qualifying it as an “interim” dividend. No liability has been recorded in the Interim Condensed Consolidated Financial Statements in respect of this dividend as of June 30, 2024 . |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2024 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | |
Asset Retirement Obligations | Note 11 - 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 the Group’s well portfolio, the Group presently expects all of its existing wells to have reached the end of their economic lives and be retired by approximately 2095 , consistent with the Group’s reserve calculations which were independently evaluated by third-party engineers for the year ended December 31, 2023 . 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. During the six months ended June 30, 2024 and year ended December 31, 2023 , the Group was not subject to any contractual agreements or statutes that imposed material obligations. 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 production, 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 2024 and 2023 was 3.7% and 3.4% , respectively. The composition of the provision for asset retirement obligations at the reporting date was as follows for the periods presented: Six Months Ended Year Ended June 30, 2024 December 31, 2023 Balance at beginning of period $ 506,648 $ 457,083 Additions (a) 63,770 3,250 Accretion 14,667 26,926 Plugging costs (3,587) (5,961) Divestitures (b) — (17,300) Revisions to estimate (c) (65,407) 42,650 Balance at end of period $ 516,091 $ 506,648 LESS: Current asset retirement obligations 5,156 5,402 Non-current asset retirement obligations $ 510,935 $ 501,246 (a) Refer to Note 4 for additional information regarding acquisitions and divestitures. (b) Associated with the divestiture of natural gas and oil properties. Refer to Note 4 for additional information. (c) As of June 30, 2024 , the Group performed normal revisions to its asset retirement obligations, which resulted in a $65,407 decrease in the liability. This decrease was primarily due to a $65,407 decrease attributable to a higher discount rate as a result of an increase in bond yield volatility over the first half of the year. As of December 31, 2023 , the Group performed normal revisions to its 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 the previous year as inflation began to increase at a lower rate and a $16,059 increase for cost revisions based on the Group’s recent asset retirement experiences. Partially offsetting this increase was a $1,239 change attributed to retirement timing. 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 June 30, 2024 : ARO Sensitivity Scenario 1 (a) Scenario 2 (b) Discount rate $ (132,932) $ 924,398 Timing 32,694 (35,590) Cost 51,516 (51,516) (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% d ecrease 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. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of detailed information about borrowings [abstract] | |
Borrowings | Note 12 - Borrowings (Amounts in thousands, except per share and per unit data) The Group’s borrowings consisted of the following amounts as of the reporting date as follows: June 30, 2024 December 31, 2023 Credit Facility (interest rate of 8.92% and 8.66% , respectively) (a) $ 268,000 $ 159,000 ABS I Notes (interest rate of 5.00% ) 90,847 100,898 ABS II Notes (interest rate of 5.25% ) 114,945 125,922 ABS III Notes (interest rate of 4.875% ) — 274,710 ABS IV Notes (interest rate of 4.95% ) 88,418 99,951 ABS V Notes (interest rate of 5.78% ) — 290,913 ABS VI Notes (interest rate of 7.50% ) (b) 273,805 159,357 ABS VIII Notes (interest rate of 7.28% ) 607,740 — ABS Warehouse Facility (interest rate of 8.07% ) (a) 71,000 — Term Loan I (interest rate of 6.50% ) 98,023 106,470 Deferred consideration and miscellaneous (c) 90,717 7,627 Total borrowings $ 1,703,495 $ 1,324,848 Less: Current portion of long-term debt (211,574) (200,822) Less: Deferred financing costs (39,267) (41,123) Less: Original issue discounts (9,668) (7,098) Total non-current borrowings, net $ 1,442,986 $ 1,075,805 (a) Represents the variable interest rate as of period end. (b) Includes $132,576 for the assumption of Oaktree’s proportionate share of the ABS VI debt as part of the Oaktree transaction as of June 30, 2024 . Refer to Note 4 for additional information regarding the Oaktree transaction. (c) Includes $83,348 in notes payable issued as part of the consideration in the Oaktree transaction as of June 30, 2024 . Refer to Note 4 for additional information regarding the Oaktree transaction. 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 sustainability initiatives by including sustainability performance targets (“SPTs”) similar to those included in the ABS VI & VIII notes and extended the maturity of the Credit Facility to August 2026 . In June 2024 , the borrowing base was upsized to $385,000 to reflect the movement of collateral following the closing of the Oaktree transaction. Refer to Note 4 for additional information regarding the Oaktree 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 quarterly basis. Available borrowings under the Credit Facility were $103,088 as of June 30, 2024 which considers the impact of $13,912 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% , or (ii) leverage is between 1.5 x and 2.0 x, free cash flow must be positive and borrowing base availability must be > 20% , and (iii) when leverage exceeds 2.0 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 June 30, 2024 . As of June 30, 2024 , the Group was in compliance with all covenants for the Credit Facility. 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 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 six months ended June 30, 2024 and 2023 and the year ended December 31, 2023 , the Group incurred $3,398 , $3,911 and $7,573 in interest related to the Term Loan I, respectively. The fair value of the Term Loan I was approximately $93,152 as of June 30, 2024 . ABS I Notes 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 six months ended June 30, 2024 and 2023 and the year ended December 31, 2023 , the Group incurred $2,419 , $2,993 and $5,660 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 was approximately $86,852 as of June 30, 2024 . 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 six months ended June 30, 2024 , the Group made $1,536 in excess cash flow payments on the ABS I Notes. ABS II Notes 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 in 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 six months ended June 30, 2024 and 2023 and the year ended December 31, 2023 , the Group incurred $3,557 , $4,174 and $8,040 in interest related to the ABS II Notes, respectively. The fair value of the ABS II Notes was approximately $108,782 as of June 30, 2024 . 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 t he 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% , then 100% , else 0% ; (c) if the loan-to-value ratio (“LTV”) as of such payment date is greater than 65% , 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% 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% 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% or ABS II has not satisfied the Extended Hedging Condition, then 100% , else 0% . During the six months ended June 30, 2024 , the Group made no excess cash flow payments on the ABS II Notes. ABS III Notes 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 in an aggregate principal amount of $365,000 at par. The ABS III Notes were secured by certain of the Group’s upstream producing, as well as certain midstream, Appalachian assets. The ABS III Notes accrued interest at a stated 4.875% rate per annum and had a final maturity date of April 2039 with an amortizing maturity of November 2030 . Interest and principal payments on the ABS III Notes were payable on a monthly basis. During the six months ended June 30, 2024 and 2023 and the year ended December 31, 2023 , the Group incurred $5,507 , $7,509 and $14,515 in interest related to the ABS III Notes, respectively. In the event that ABS III had cash flow in excess of the required payments, ABS III was 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 was greater than or equal to 1.25 to 1.00, then 0% , (ii) if the DSCR as of such payment date was 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 was 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) was less than 80% , then 100% , else 0% ; and (c) if the LTV for ABS III was greater than 65% , then 100% , else 0% . During the six months ended June 30, 2024 , the Group made no excess cash flow payments on the ABS III Notes. In May 2024 , the Group used proceeds from the ABS VIII Notes to repay the outstanding principal of the ABS III & V notes, thereby retiring the ABS III & V notes from the Group’s outstanding debt and resulting in a loss on the early retirement of debt of $10,649 . Diversified ABS III LLC & Diversified ABS V LLC were concurrently dissolved. The ABS VIII Notes are secured by the collateral previously securing the ABS III & V notes. ABS IV Notes In February 2022 , the Group formed Diversified ABS Phase IV LLC (“ABS IV”), a limited-purpose, bankruptcy-remote, wholly-owned subsidiary, to issue BBB rated asset-backed securities in 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 six months ended June 30, 2024 and 2023 and the year ended December 31, 2023 , the Group incurred $2,342 , $3,033 and $5,703 in interest related to the ABS IV Notes, respectively. The fair value of the ABS IV Notes was approximately $81,522 as of June 30, 2024 . 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 six months ended June 30, 2024 , 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 in an aggregate principal amount of $445,000 at par. The ABS V Notes were 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 accrued interest at a stated 5.78% rate per annum and had a final maturity date of May 2039 with an amortizing maturity of December 2030 . Interest and principal payments on the ABS V Notes were payable on a monthly basis. During the six months ended June 30, 2024 and 2023 and the year ended December 31, 2023 , the Group incurred $6,792 , $10,273 and $19,332 in interest related to the ABS V Notes, respectively. Based on whether certain performance metrics were achieved, ABS V was 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 was greater than or equal to 1.25 to 1.00, then 0% , (ii) if the DSCR as of such payment date was 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 was less than 1.15 to 1.00, then 100% ; (b) if the production tracking rate for ABS V was less than 80% , then 100% , else 0% ; and (c) if the LTV for ABS V was greater than 65% , then 100% , else 0% . During the six months ended June 30, 2024 , the Group made no excess cash flow payments on the ABS V Notes. In May 2024 , the Group used proceeds from the ABS VIII Notes to repay the outstanding principal of the ABS III & V notes, thereby retiring the ABS III & V notes from the Group’s outstanding debt and resulting in a loss on the early retirement of debt of $10,649 . Diversified ABS III LLC & Diversified ABS V LLC were concurrently dissolved. The ABS VIII Notes are secured by the collateral previously securing the ABS III & V notes. ABS VI Notes In October 2022 , the Group formed Diversified ABS Phase VI LLC (“ABS VI”), a limited-purpose, bankruptcy-remote, wholly-owned subsidiary, to issue, jointly with Oaktree, BBB+ rated asset-backed securities in 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 2021 Tapstone acquisition. The Group recorded its proportionate share of the note in its Consolidated Statement of Financial Position. In June 2024 , the Group assumed Oaktree’s proportionate debt of $132,576 associated with the ABS VI Notes as part of the Oaktree transaction. Refer to Note 4 for additional information regarding the Oaktree transaction. 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 six months ended June 30, 2024 and 2023 and the year ended December 31, 2023 , the Group incurred $7,170 , $8,257 and $15,433 in interest related to the ABS VI Notes, respectively. The fair value of the ABS VI Notes was approximately $270,740 as of June 30, 2024 . 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 six months ended June 30, 2024 , the Group made no excess cash flow payments on the ABS VI Notes. ABS VII Notes In November 2023 , the Group formed DP Lion 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 ABS VII Class A Notes are rated BBB+ and were issued for an aggregate principal amount of $142,000 . The ABS VII 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 Holdco LLC to outside investors, generating cash proceeds of $30,000 . The Group evaluated the remaining 20% interest in DP Lion 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 Holdco LLC entity. Accordingly, this entity is not consolidated within the Group’s financial statements for the six months ended June 30, 2024 . The Group’s remaining investment in the LLC of $7,500 was accounted for at fair value in accordance with IFRS 9, Financial Instruments (“IFRS 9”). Refer to Note 4 for additional information regarding the DP Lion Equity Holdco LLC equity sale. ABS VIII Notes In May 2024 , the Group formed Diversified ABS VIII LLC, a limited-purpose, bankruptcy-remote, wholly-owned subsidiary, to issue Class A-1 and Class A-2 asset-backed securities (collectively “ABS VIII”). The ABS VIII Class A-1 Notes are rated A and were issued for an aggregate principal amount of $400,000 . The ABS VIII Class A-2 Notes are rated BBB+ and were issued for an aggregate principal amount of $210,000 . The Group used the proceeds to repay the outstanding principal of the ABS III & V notes, thereby retiring the ABS III & V notes from the Group’s outstanding debt. Diversified ABS III LLC & Diversified ABS V LLC were concurrently dissolved. The ABS VIII Notes are secured by the collateral previously securing the ABS III & V notes which includes certain of the Group’s upstream producing, as well as certain midstream, Appalachian assets and the remaining upstream assets in Appalachia that were not securitized by previous ABS transactions. The ABS VIII Class A-1 Notes accrue interest at a stated 7.076% rate per annum and have a final maturity date of May 2044 with an amortizing maturity of March 2033 . The Class A-2 Notes accrue interest at a stated 7.670% rate per annum and have a final maturity date of May 2044 with an amortizing maturity of March 2033 . Interest and principal payments on the ABS VIII Class A-1 and Class A-2 notes are payable on a monthly basis. During the six months ended June 30, 2024 , the Group incurred $3,948 in interest related to the ABS VIII Notes. The fair value of the ABS VIII Notes was approximately $617,579 as of June 30, 2024 . Based on whether certain performance metrics are achieved, ABS VIII is required to apply 25% 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 1.45 to 1.00, then 100% , (ii) if the DSCR as of such payment date is greater than or equal to 1.45 to 1.00 and less than 1.50 to 1.00, then 50% , or (iii) if the DSCR as of such payment date is greater than or equal to 1.50 to 1.00, then 25% ; (b) if the production tracking rate for ABS VIII is less than 80% , then 100% , else 25% ; or (c) if the LTV for ABS VIII is greater than 75% , then 100% , else 25% . During the six months ended June 30, 2024 , the Group made no excess cash flow payments on the ABS VIII Notes. ABS Facility Warehouse In June 2024 , the Group formed DP Mustang Holdco LLC, a limited-purpose, bankruptcy-remote, wholly-owned subsidiary (the “ABS Warehouse”), to close on a bridge loan facility (the “ABS Warehouse Facility”). The initial draw on the ABS W arehouse Facility was $71,000 , including $66,343 in net proceeds, $3,060 in restricted cash interest reserve and $1,597 in debt issuance costs. The ABS Warehouse Facility is secured by certain producing assets previously collateralizing the Credit Facility. The ABS Warehouse Facility has an interest rate of SOFR plus an additional 3.75% and has a legal final maturity date of May 2029 . Interest and principal payments on the ABS Warehouse Facility are payable on a monthly basis. The fair value of the ABS Warehouse Facility approximates the carrying value as of June 30, 2024 . Oaktree Seller’s Note In June 2024 the Group funded the purchase price of the Oaktree transaction, in part, with deferred consideration in the form of an unsecured seller’s note from Oaktree (the “Oaktree Seller’s Note”). The Group issued $83,348 in notes at a stated 8.0% rate per annum and have a final maturity date of December 2025 . Deferred interest and principal payments are due in three payments in December 2024, June 2025, and December 2025. During the six months ended June 30, 2024 , the Group incurred $556 in interest related to the Oaktree Seller’s Note. The fair value of the Oaktree Seller’s Note approximates the carrying value as of June 30, 2024 . The Oaktree Seller’s Note contains certain customary representations and warranties and affirmative and negative covenants. As of June 30, 2024 , the Group was in compliance with all covenants for the Oaktree Seller’s Note. Refer to Note 4 for additional information regarding the Oaktree transaction. Debt Covenants ABS I, II, IV, VI and VIII Notes (Collectively, the “ABS Notes”), ABS Warehouse Facility and Term Loan I The ABS Notes, ABS Warehouse Facility 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, ABS Warehouse Facility 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, ABS Warehouse Facility 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, ABS Warehouse Facility 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 IV only). The ABS Notes, ABS Warehouse Facility 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, ABS Warehouse Facility and Term Loan I on the applicable scheduled maturity date. The ABS Notes, ABS Warehouse Facility 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, ABS Warehouse Facility 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 June 30, 2024 , the Group was in compliance with all financial covenants for the ABS Notes, ABS Warehouse Facility and Term Loan I. Sustainability-Linked Borrowings Credit Facility The Credit Facility contains three 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 will be required to certify the Group’s performance of the SPTs. ABS IV In connection with the issuance of the ABS 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 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 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 IV note holders in monthly note holder statements as to any change in interest rate payable on the ABS IV Notes as a result of the change in this sustainability score. ABS VI & ABS VIII In addition, a “second party opinion provider” certified the terms of the ABS VI & ABS VIII 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 ha s 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 do not require a specific use of proceeds. The ABS VI & ABS VIII Notes contain two SPTs. The Group must achieve, and have certified by May 28, 2027 for the ABS VI Notes and December 31, 2029 for the ABS VIII Notes (1) a reduction in Scope 1 and Scope 2 GHG emissions intensity to 2.85 MT CO 2 e/MMcfe for the ABS VI Notes and 2.73 MT CO 2 e/MMcfe or the ABS VIII Notes, and/or (2) a reduction in Scope 1 methane emissions intensity to 1.12 MT CO 2 e/MMcfe for the ABS VI Notes and 0.75 MT CO 2 e/MMcfe for the ABS VIII Notes. For each of these SPTs that the Group fails to meet, or have certified by an external verifier that it has met, by May 28, 2027 for the ABS VI Notes and December 31, 2029 for the ABS VIII Notes, the interest rate payable with respect to the ABS VI & ABS VIII 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 June 30, 2024 , 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: June 30, 2024 December 31, 2023 Not later than one year $ 211,574 $ 200,822 Later than one year and not later than five years 890,810 864,264 Later than five years 601,111 259,762 Total borrowings $ 1,703,495 $ 1,324,848 Finance Costs The following table represents the Group’s finance costs for each of the periods presented: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Interest expense, net of capitalized and income amounts (a) $ 52,494 $ 58,768 $ 117,808 Amortization of discount and deferred finance costs 8,087 8,968 16,358 Total finance costs $ 60,581 $ 67,736 $ 134,166 Loss on early retirement of debt (b) $ 10,649 $ — $ — (a) Includes payments related to borrowings and leases. (b) In May 2024 , the Group used proceeds from the ABS VIII Notes to repay the outstanding principal of the ABS III & V notes, thereby retiring the ABS III & V notes from the Group’s outstanding debt and resulting in a loss on the early retirement of debt of $10,649 . Diversified ABS III LLC & Diversified ABS V LLC were concurrently dissolved. The ABS VIII Notes are secured by the collateral previously securing the ABS III & V notes. Financing Activities Reconciliation of borrowings arising from financing activities: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Balance at beginning of period $ 1,276,627 $ 1,440,329 $ 1,440,329 Acquired as part of an acquisition 215,924 — — Sale of equity interest — — (154,966) Proceeds from borrowings 1,238,348 840,230 1,537,230 Rep |
FAIR VALUE & FINANCIAL INSTRUME
FAIR VALUE & FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value and Financial Instruments [Abstract] | |
FAIR VALUE & FINANCIAL INSTRUMENTS | Note 13 - Fair Value & 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 June 30, 2024 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. There were no transfers between fair value levels for the six months ended June 30, 2024 . The following table includes the fair value of the Group's financial instruments as of the periods presented: June 30, 2024 December 31, 2023 Cash and cash equivalents $ 3,483 $ 3,753 Trade receivables, net 180,017 190,207 Other non-current assets 13,637 9,172 Other non-current liabilities (a) (4,491) (1,946) Other current liabilities (b) (224,651) (272,101) Derivative financial instruments at fair value (601,436) (557,460) Leases (43,021) (31,122) Borrowings (1,703,495) (1,324,848) Total $ (2,379,957) $ (1,984,345) (a) Excludes $278 for the long-term portion of the value associated with the upfront promote received from Oaktree as of December 31, 2023 . (b) Includes accrued expenses, net revenue clearing and revenue to be distributed. Excludes asset retirement obligations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of contingent liabilities [abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 14 - Commitments & Contingencies (Amounts in thousands, except per share and per unit data) Litigation & 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 June 30, 2024 , 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 its 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 June 30, 2024 . 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 | 6 Months Ended |
Jun. 30, 2024 | |
Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 15 - Related Party Transactions (Amounts in thousands, except per share and per unit data) The Group had no related party activity in 2024 or 2023 . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
Events After Reporting Period [Abstract] | |
SUBSEQUENT EVENTS | Note 16 - 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 June 30, 2024 , which have been described within each relevant footnote as follows: Description Footnote Acquisitions & Divestitures Note 4 Dividends Note 10 |
Basis of Preparation (Policies)
Basis of Preparation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of basis of preparation of financial statements [Abstract] | |
Basis of Preparation | The Group’s unaudited interim condensed consolidated financial statements for the six months ended June 30, 2024 (the " Interim Condensed Consolidated Financial Statements ") have been prepared in accordance with the International Accounting Standard 34, ‘Interim Financial Reporting’ (“IAS 34”) as issued by the International Accounting Standards Board (the “IASB”). The Interim Condensed Consolidated Financial Statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual financial statements for the year ended December 31, 2023 , which were 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. The annual financial statements for the year ending December 31, 2024 will be prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). |
Measurement Basis | Unless otherwise stated, the Interim Condensed Consolidated 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 subsidiary has 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 Interim Condensed Consolidated 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, the Group’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 Interim Condensed Consolidated Financial Statements have been prepared on the going concern basis of accounting. The Directors closely monitor and carefully manage the Group’s liquidity risk. The Group’s 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. In assessing the appropriateness of the going concern assumption over the next twelve months, management have stress tested the Group’s most recent financial projections to incorporate a range of potential future outcomes by considering the Group’s principal risks, potential downside pressures on commodity prices, long-term demand and availability of loan facility; management has also considered cash preservation measures, including reduced capital expenditure and shareholder distributions. This assessment confirmed that the Group has adequate cash and other liquid resources to enable it to meet its obligations as they fall due in order to continue its operations over the twelve months from the issuance date of these Interim Condensed Consolidated Financial Statements . Therefore, the Directors consider it appropriate to continue to adopt the going concern basis of accounting in preparing these unaudited Interim Condensed Consolidated Financial Statements . |
Prior Period Reclassifications and Changes in Presentation | Prior Period Reclassifications 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. |
Basis of Consolidation | Basis of Consolidation The Interim Condensed Consolidated Financial Statements for the six months ended June 30, 2024 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 ›DP Lion Equity Holdco LLC (c) ›Riverside Land LLC (d) ›Diversified Production LLC ›DP Lion HoldCo LLC (c) ›Splendid Land LLC (d) ›Diversified ABS Holdings LLC ›Diversified ABS VIII Holdings LLC ›Next LVL Energy, LLC ›Diversified ABS LLC ›Diversified ABS VIII LLC ›Diversified Midstream LLC ›Diversified ABS Phase II Holdings LLC ›Diversified ABS III Upstream LLC ›Cranberry Pipeline Corporation ›Diversified ABS Phase II LLC ›Diversified ABS V Upstream II LLC ›Coalfield Pipeline Company ›Diversified ABS Phase IV Holdings LLC ›DP Mustang Equity Holdco LLC ›DM Bluebonnet LLC ›Diversified ABS Phase IV LLC ›DP Mustang Holdco LLC ›Black Bear Midstream Holdings LLC ›DP Bluegrass Holdings LLC ›DP RBL Co LLC ›Black Bear Midstream LLC ›DP Bluegrass LLC ›DP Legacy Central LLC ›Black Bear Liquids LLC ›Chesapeake Granite Wash Trust (a) ›Diversified Energy Marketing LLC ›Black Bear Liquids Marketing LLC ›BlueStone Natural Resources II LLC ›OCM Denali Holdings LLC ›DM Pennsylvania Holdco LLC ›Sooner State Joint ABS Holdings LLC (b) ›DP Tapstone Energy Holdings LLC ›DGOC Holdings Sub III LLC ›Diversified ABS Phase VI Holdings LLC ›DP Legacy Tapstone LLC ›Diversified Energy Group LLC ›Diversified ABS Phase VI LLC ›Giant Land, LLC (d) ›Diversified Energy Company LLC ›Diversified ABS VI Upstream LLC ›Link Land LLC (d) ›Oaktree ABS VI Upstream LLC ›Old Faithful Land LLC (d) (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; owned 48.75% by OCM Denali Holdings 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 June 30, 2024 . Refer to Note 4 for additional information. (d) Owned 55% by Diversified Energy Company PLC. |
Restricted Cash | Restricted 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 cash reserves for interest payments related to its asset-backed securitizations discussed in Note 12 . These cash 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. The cash reserve is managed and held by an indenture trustee who monitors the cash reserve month to month ensuring the proper quantum is maintained. The 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. |
New or Amended Accounting Standards - Adopted | New or Amended Accounting Standards - Adopted The following accounting standards, amendment and interpretations became effective in the current year: • Classification of Liabilities as Current or Non-Current and Non-Current Liabilities with Covenants: Amendment to IAS 1 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 Interim Condensed Consolidated Financial Statements |
Basis of Preparation (Tables)
Basis of Preparation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of basis of preparation of financial statements [Abstract] | |
Disclosure of interests in subsidiaries | The Interim Condensed Consolidated Financial Statements for the six months ended June 30, 2024 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 ›DP Lion Equity Holdco LLC (c) ›Riverside Land LLC (d) ›Diversified Production LLC ›DP Lion HoldCo LLC (c) ›Splendid Land LLC (d) ›Diversified ABS Holdings LLC ›Diversified ABS VIII Holdings LLC ›Next LVL Energy, LLC ›Diversified ABS LLC ›Diversified ABS VIII LLC ›Diversified Midstream LLC ›Diversified ABS Phase II Holdings LLC ›Diversified ABS III Upstream LLC ›Cranberry Pipeline Corporation ›Diversified ABS Phase II LLC ›Diversified ABS V Upstream II LLC ›Coalfield Pipeline Company ›Diversified ABS Phase IV Holdings LLC ›DP Mustang Equity Holdco LLC ›DM Bluebonnet LLC ›Diversified ABS Phase IV LLC ›DP Mustang Holdco LLC ›Black Bear Midstream Holdings LLC ›DP Bluegrass Holdings LLC ›DP RBL Co LLC ›Black Bear Midstream LLC ›DP Bluegrass LLC ›DP Legacy Central LLC ›Black Bear Liquids LLC ›Chesapeake Granite Wash Trust (a) ›Diversified Energy Marketing LLC ›Black Bear Liquids Marketing LLC ›BlueStone Natural Resources II LLC ›OCM Denali Holdings LLC ›DM Pennsylvania Holdco LLC ›Sooner State Joint ABS Holdings LLC (b) ›DP Tapstone Energy Holdings LLC ›DGOC Holdings Sub III LLC ›Diversified ABS Phase VI Holdings LLC ›DP Legacy Tapstone LLC ›Diversified Energy Group LLC ›Diversified ABS Phase VI LLC ›Giant Land, LLC (d) ›Diversified Energy Company LLC ›Diversified ABS VI Upstream LLC ›Link Land LLC (d) ›Oaktree ABS VI Upstream LLC ›Old Faithful Land LLC (d) (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; owned 48.75% by OCM Denali Holdings 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 June 30, 2024 . Refer to Note 4 for additional information. (d) Owned 55% by Diversified Energy Company PLC. |
Material Accounting Policies (T
Material Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Significant Accounting Policies [Abstract] | |
Schedule of Restricted Cash | June 30, 2024 December 31, 2023 Cash restricted by asset-backed securitizations $ 54,618 $ 35,870 Other restricted cash 358 382 Total restricted cash $ 54,976 $ 36,252 Classified as: Current asset $ 18,602 $ 11,195 Non-current asset 36,374 25,057 Total $ 54,976 $ 36,252 |
Acquisitions & Divestitures (Ta
Acquisitions & Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Acquisitions And Divestitures [Abstract] | |
Summary of Provisional Assets and Liabilities | The acquired assets and liabilities were as follows: Consideration paid Cash consideration $ 176,653 Oaktree Seller's Note 83,348 Elimination of Oaktree liability (39,238) Total consideration $ 220,763 Net assets acquired Natural gas and oil properties $ 314,714 Asset retirement obligation, asset portion 63,770 Property, plant and equipment 457 Restricted cash 6,153 Derivative financial instruments, net 39,841 Asset retirement obligation, liability portion (63,770) Borrowings (132,576) Other current liabilities (7,826) Net assets acquired $ 220,763 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue [abstract] | |
Schedule of disaggregation of revenue | The following table reconciles the Group's revenue for the periods presented: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Natural gas $ 209,008 $ 334,588 $ 557,167 NGLs 70,935 67,159 141,321 Oil 56,185 54,294 103,911 Total commodity revenue $ 336,128 $ 456,041 $ 802,399 Midstream 17,416 16,662 30,565 Other (a) 15,130 14,602 35,299 Total revenue $ 368,674 $ 487,305 $ 868,263 (a) For the six months ended June 30, 2024 and 2023 and the year ended December 31, 2023 , other includes $7,776 , $11,550 and $28,360 in third-party plugging revenue and $7,354 , $3,052 and $6,939 in other revenue, respectively. |
Expenses by Nature (Tables)
Expenses by Nature (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Analysis of income and expense [abstract] | |
Summary of details of the Group's expenses | The following table provides a detail of the Group's expenses for the periods presented: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 LOE (a) $ 98,511 $ 111,637 $ 213,078 Production taxes (b) 19,993 31,307 61,474 Midstream operating expense (c) 35,563 34,391 69,792 Transportation expense (d) 42,045 49,964 96,218 Total operating expense $ 196,112 $ 227,299 $ 440,562 Depreciation and amortization 29,471 27,503 56,453 Depletion 89,749 87,533 168,093 Total depreciation, depletion and amortization $ 119,220 $ 115,036 $ 224,546 Employees administrative costs and professional services (e) 40,482 38,497 78,659 Costs associated with acquisitions (f) 3,724 8,866 16,775 Other adjusting costs (g) 10,451 3,376 17,794 Non-cash equity compensation (h) 3,669 4,417 6,494 Total G&A $ 58,326 $ 55,156 $ 119,722 Recurring allowance for credit losses (i) — — 8,478 Total expense $ 373,658 $ 397,491 $ 793,308 Aggregate remuneration (including Directors): Wages and salaries $ 62,662 $ 61,135 $ 124,834 Payroll taxes 5,456 5,238 10,163 Benefits 14,778 12,560 31,912 Total employees and benefits expense $ 82,896 $ 78,933 $ 166,909 (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 the Group’s administrative and corporate staff, costs of maintaining administrative and corporate offices, costs of managing the Group’s 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 various 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 systems. (g) Other adjusting costs include items that affect the comparability of results or that are not indicative of trends in the ongoing business. These costs consist of one time projects, contemplated transactions or financing arrangements, contract terminations, deal breakage and/or sourcing costs for acquisitions, and unused firm transportation. (h) Non-cash equity compensation reflects the expense recognition related to share-based compensation provided to certain key members of the management team. (i) Allowance for credit losses consists of the recognition and reversal of credit losses. |
Taxation (Tables)
Taxation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax [Abstract] | |
Schedule of provision for income taxes | The provision for income taxes in the Consolidated Statement of Comprehensive Income is summarized below: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Current income tax (benefit) expense Federal (benefit) expense $ 4,568 $ 1,993 $ 7,289 State (benefit) expense 4,217 2,128 5,902 Foreign - UK (benefit) expense — 17 — Total current income tax (benefit) expense $ 8,785 $ 4,138 $ 13,191 Deferred income tax (benefit) expense Federal (benefit) expense $ (98,109) $ 172,067 $ 202,133 State (benefit) expense (8,722) 21,119 25,460 Foreign - UK (benefit) expense 49 — (141) Total deferred income tax (benefit) expense $ (106,782) $ 193,186 $ 227,452 Total income tax (benefit) expense $ (97,997) $ 197,324 $ 240,643 |
Schedule of effective tax rates reconciliation | The effective tax rate is calculated on the face of the Statement of Comprehensive Income by dividing the amount of recorded income tax benefit (expense) by the income (loss) before taxation as follows: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Income (loss) before taxation $ (82,252) $ 828,256 $ 1,000,344 Income tax benefit (expense) 97,997 (197,324) (240,643) Effective tax rate 119.1 % 23.8 % 24.1 % The differences between the statutory U.S. federal income tax rate and the effective tax rates are summarized as follows: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Expected tax at statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 2.1 % 3.0 % 3.1 % Federal credits 96.9 % — % — % Other, net (0.9) % (0.2) % — % Effective tax rate 119.1 % 23.8 % 24.1 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of detailed information about 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: Natural Gas Contracts Weighted Average Price per Mcfe (a) Volume Sold Purchased Sold Purchased Basis Fair Value at (MMBtu) Swaps Puts Puts Calls Calls Differential June 30, 2024 For the remainder of 2024 Swaps 108,861 $ 3.42 $ — $ — $ — $ — $ — $ 51,068 Stand-alone calls, net (b) — — — — — — — (7,254) Basis swaps 95,228 — — — — — (0.68) 10,808 2025 Swaps 175,398 $ 3.15 $ — $ — $ — $ — $ — $ (67,874) Two-way collars 3,650 — — 3.59 3.79 — — 320 Stand-alone calls, net (b) 2,164 — — — 3.62 — — (16,680) Basis swaps 105,478 — — — — — (0.77) (1,359) 2026 Swaps 139,307 $ 3.19 $ — $ — $ — $ — $ — $ (89,444) Two-way collars 3,650 — — — 5.13 3.08 — (309) Stand-alone calls, net (b) 12,477 — — — 3.59 — — (30,375) Basis swaps 21,071 — — — — — (0.53) (1,056) Natural Gas Contracts Weighted Average Price per Mcfe (a) Volume Sold Purchased Sold Purchased Basis Fair Value at (MMBtu) Swaps Puts Puts Calls Calls Differential June 30, 2024 2027 Swaps 122,503 $ 3.22 $ — $ — $ — $ — $ — $ (74,898) Two-way collars 6,409 — — 3.52 5.87 — — 910 Stand-alone calls, net (b) 10,950 — — — 3.59 — — (28,808) Basis swaps 8,110 — — — — — (0.39) (404) 2028 Swaps 99,245 $ 2.85 $ — $ — $ — $ — $ — $ (83,878) Two-way collars 10,502 — — 4.10 6.61 — — 6,023 Stand-alone calls, net (b) — — — — — — — (1,527) Purchased puts 7,978 — — 3.08 — — — 2,925 Sold puts 7,978 — 3.08 — — — — (2,925) Basis swaps 7,557 — — — — — (0.39) (461) 2029 Swaps 36,066 $ 2.36 $ — $ — $ — $ — $ — $ (39,917) Two-way collars 28,251 — — 3.72 5.01 — — 5,728 Purchased puts 30,066 — — 2.80 — — — 9,732 Sold puts 30,066 — 1.85 — — — — (2,165) Basis swaps 3,594 — — — — — (0.39) (343) 2030 Swaps 11,726 $ 2.89 $ — $ — $ — $ — $ — $ (7,327) Two-way collars 30,099 — — 3.59 4.21 — — 3,301 Purchased puts 14,492 — — 2.81 — — — 5,146 Sold puts 14,492 — 1.85 — — — — (1,269) 2031 Swaps 5,909 $ 3.70 $ — $ — $ — $ — $ — $ 310 Two-way collars 38,595 — — 3.59 4.19 — — 3,817 2032 Swaps 2,824 $ 3.70 $ — $ — $ — $ — $ — $ 274 Two-way collars 9,190 — — 3.59 4.19 — — (625) Swaptions 10/1/2024-9/30/2028 (c) 14,610 $ 2.79 $ — $ — $ — $ — $ — $ (11,287) 1/1/2025-12/31/2029 (d) 36,520 2.65 — — — — — (33,024) 4/1/2026-3/31/2030 (e) 82,171 2.46 — — — — — (92,714) 4/1/2030-3/31/2032 (f) 42,627 2.46 — — — — — (43,602) Total natural gas contracts 1,379,814 $ (539,163) (a) Rates have been converted from Btu to Mcfe using a Btu conversion factor of 1.03 . (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 June 30, 2024 For the Remainder of 2024 Swaps 1,809 $ 37.24 $ — $ (4,634) Stand-alone calls 460 — 31.29 (2,736) 2025 Swaps 3,347 $ 33.81 $ — $ (10,860) Stand-alone calls 913 — 30.07 (6,369) 2026 Swaps 3,050 $ 32.02 $ — $ (6,615) Stand-alone calls 913 — 27.83 (1,862) 2027 Swaps 1,916 $ 33.21 $ — $ (3,820) 2028 Swaps 267 $ 28.91 $ — $ (686) Total NGLs contracts 12,675 $ (37,582) Oil Contracts Weighted Average Price per Bbl Volume Purchased Sold Fair Value at (MBbls) Swaps Puts Calls June 30, 2024 For the Remainder of 2024 Swaps 372 $ 64.52 $ — $ — $ (5,370) Two-way collars 156 — 70.00 91.20 66 Sold calls 92 — — 70.00 (942) 2025 Swaps 739 $ 61.07 $ — $ — $ (8,630) Sold calls 110 — — 70.50 (1,015) 2026 Swaps 600 $ 61.07 $ — $ — $ (5,206) Sold calls 110 — — 67.50 (1,124) 2027 Swaps 550 $ 62.34 $ — $ — $ (2,795) Total oil contracts 2,729 $ (25,016) Interest Principal Hedged Fair Value at Fixed Rate June 30, 2024 2024 SOFR interest rate swap $ 5,520 4.15 % $ 325 Net fair value of derivative financial instruments as of June 30, 2024 $ (601,436) |
Summary of net derivatives | The following table outlines the Group’s net derivatives as of the reporting date as follows: Derivative Financial Instruments Consolidated Statement of Financial Position June 30, 2024 December 31, 2023 Assets: Non-current assets Derivative financial instruments $ 39,617 $ 24,401 Current assets Derivative financial instruments 70,313 87,659 Total assets $ 109,930 $ 112,060 Liabilities: Non-current liabilities Derivative financial instruments $ (611,576) $ (623,684) Current liabilities Derivative financial instruments (99,790) (45,836) Total liabilities $ (711,366) $ (669,520) Net assets (liabilities): Net assets (liabilities) - non-current Derivative financial instruments $ (571,959) $ (599,283) Net assets (liabilities) - current Derivative financial instruments (29,477) 41,823 Total net assets (liabilities) $ (601,436) $ (557,460) |
Summary of effect of netting, assets | The following presents the impact of this presentation to the Group’s recognized assets and liabilities as of the periods indicated: As of June 30, 2024 Presented without Effects of Netting Effects of Netting As Presented with Effects of Netting Non-current assets $ 128,365 $ (88,748) $ 39,617 Current assets 112,331 (42,018) 70,313 Total assets $ 240,696 $ (130,766) $ 109,930 Non-current liabilities $ (700,325) $ 88,749 $ (611,576) Current liabilities (141,807) 42,017 (99,790) Total liabilities $ (842,132) $ 130,766 $ (711,366) Total net assets (liabilities) $ (601,436) $ — $ (601,436) As of 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) |
Summary of effect of netting, liabilities | The following presents the impact of this presentation to the Group’s recognized assets and liabilities as of the periods indicated: As of June 30, 2024 Presented without Effects of Netting Effects of Netting As Presented with Effects of Netting Non-current assets $ 128,365 $ (88,748) $ 39,617 Current assets 112,331 (42,018) 70,313 Total assets $ 240,696 $ (130,766) $ 109,930 Non-current liabilities $ (700,325) $ 88,749 $ (611,576) Current liabilities (141,807) 42,017 (99,790) Total liabilities $ (842,132) $ 130,766 $ (711,366) Total net assets (liabilities) $ (601,436) $ — $ (601,436) As of 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) |
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: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Net gain (loss) on commodity derivatives settlements (a) $ 77,749 $ 54,525 $ 178,064 Net gain (loss) on interest rate swaps (a) 100 (2,824) (2,722) Gain (loss) on foreign currency hedges (a) — (521) (521) Total gain (loss) on settled derivative instruments $ 77,849 $ 51,180 $ 174,821 Gain (loss) on fair value adjustments of unsettled financial instruments (b) (80,117) 760,933 905,695 Total gain (loss) on derivative financial instruments $ (2,268) $ 812,113 $ 1,080,516 (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. |
Share Capital (Tables)
Share Capital (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 January 1, 2024 47,556 $ 12,897 $ 1,208,192 Issuance of EBT shares (equity compensation) 116 — — Repurchase of shares (EBT) (197) — — Repurchase of shares (share buyback program) (619) (104) — Balance as of June 30, 2024 46,856 $ 12,793 $ 1,208,192 Balance as of January 1, 2023 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) 296 — — Repurchase of shares (share buyback program) (10) (2) — Balance as of June 30, 2023 48,155 $ 13,056 $ 1,208,192 Balance as of January 1, 2023 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 |
Dividends (Tables)
Dividends (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 15, 2023 $ 0.875 £ 0.6844 March 1, 2024 March 28, 2024 47,221 $ 41,319 April 10, 2024 $ 0.290 £ 0.2283 May 24, 2024 June 28, 2024 47,063 13,648 Paid during the six months ended June 30, 2024 $ 54,967 Dividend per Share Record Date Pay Date Shares Outstanding Gross Dividends Paid Date Dividends Declared USD GBP November 14, 2022 $ 0.875 £ 0.7220 March 3, 2023 March 28, 2023 47,869 $ 41,885 March 21, 2023 $ 0.875 £ 0.6860 May 26, 2023 June 30, 2023 48,165 42,144 Paid during the six months ended June 30, 2023 $ 84,029 May 9, 2023 $ 0.875 £ 0.7040 September 1, 2023 September 29, 2023 48,157 $ 42,137 September 1, 2023 $ 0.875 £ 0.6840 December 1, 2023 December 29, 2023 47,857 41,875 Paid during the year ended December 31, 2023 $ 168,041 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: Six Months Ended Year Ended June 30, 2024 December 31, 2023 Balance at beginning of period $ 506,648 $ 457,083 Additions (a) 63,770 3,250 Accretion 14,667 26,926 Plugging costs (3,587) (5,961) Divestitures (b) — (17,300) Revisions to estimate (c) (65,407) 42,650 Balance at end of period $ 516,091 $ 506,648 LESS: Current asset retirement obligations 5,156 5,402 Non-current asset retirement obligations $ 510,935 $ 501,246 (a) Refer to Note 4 for additional information regarding acquisitions and divestitures. (b) Associated with the divestiture of natural gas and oil properties. Refer to Note 4 for additional information. (c) As of June 30, 2024 , the Group performed normal revisions to its asset retirement obligations, which resulted in a $65,407 decrease in the liability. This decrease was primarily due to a $65,407 decrease attributable to a higher discount rate as a result of an increase in bond yield volatility over the first half of the year. As of December 31, 2023 , the Group performed normal revisions to its 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 the previous year as inflation began to increase at a lower rate and a $16,059 increase for cost revisions based on the Group’s recent asset retirement experiences. Partially offsetting this increase was a $1,239 change attributed to retirement timing. |
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 June 30, 2024 : ARO Sensitivity Scenario 1 (a) Scenario 2 (b) Discount rate $ (132,932) $ 924,398 Timing 32,694 (35,590) Cost 51,516 (51,516) (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% d ecrease 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. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of Borrowings | The Group’s borrowings consisted of the following amounts as of the reporting date as follows: June 30, 2024 December 31, 2023 Credit Facility (interest rate of 8.92% and 8.66% , respectively) (a) $ 268,000 $ 159,000 ABS I Notes (interest rate of 5.00% ) 90,847 100,898 ABS II Notes (interest rate of 5.25% ) 114,945 125,922 ABS III Notes (interest rate of 4.875% ) — 274,710 ABS IV Notes (interest rate of 4.95% ) 88,418 99,951 ABS V Notes (interest rate of 5.78% ) — 290,913 ABS VI Notes (interest rate of 7.50% ) (b) 273,805 159,357 ABS VIII Notes (interest rate of 7.28% ) 607,740 — ABS Warehouse Facility (interest rate of 8.07% ) (a) 71,000 — Term Loan I (interest rate of 6.50% ) 98,023 106,470 Deferred consideration and miscellaneous (c) 90,717 7,627 Total borrowings $ 1,703,495 $ 1,324,848 Less: Current portion of long-term debt (211,574) (200,822) Less: Deferred financing costs (39,267) (41,123) Less: Original issue discounts (9,668) (7,098) Total non-current borrowings, net $ 1,442,986 $ 1,075,805 (a) Represents the variable interest rate as of period end. (b) Includes $132,576 for the assumption of Oaktree’s proportionate share of the ABS VI debt as part of the Oaktree transaction as of June 30, 2024 . Refer to Note 4 for additional information regarding the Oaktree transaction. (c) Includes $83,348 in notes payable issued as part of the consideration in the Oaktree transaction as of June 30, 2024 . Refer to Note 4 for additional information regarding the Oaktree transaction. Reconciliation of borrowings arising from financing activities: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Balance at beginning of period $ 1,276,627 $ 1,440,329 $ 1,440,329 Acquired as part of an acquisition 215,924 — — Sale of equity interest — — (154,966) Proceeds from borrowings 1,238,348 840,230 1,537,230 Repayments of borrowings (1,076,897) (782,990) (1,547,912) Costs incurred to secure financing (13,988) (1,730) (13,776) Amortization of discount and deferred financing costs 8,087 8,968 16,358 Cash paid for interest (47,632) (60,215) (116,784) Finance costs and other 54,091 60,017 116,148 Balance at end of period $ 1,654,560 $ 1,504,609 $ 1,276,627 |
Schedule of Maturity of Borrowings | The following table provides a reconciliation of the Group’s future maturities of its total borrowings as of the reporting date as follows: June 30, 2024 December 31, 2023 Not later than one year $ 211,574 $ 200,822 Later than one year and not later than five years 890,810 864,264 Later than five years 601,111 259,762 Total borrowings $ 1,703,495 $ 1,324,848 |
Schedule of Finance Costs | The following table represents the Group’s finance costs for each of the periods presented: Six Months Ended Year Ended June 30, 2024 June 30, 2023 December 31, 2023 Interest expense, net of capitalized and income amounts (a) $ 52,494 $ 58,768 $ 117,808 Amortization of discount and deferred finance costs 8,087 8,968 16,358 Total finance costs $ 60,581 $ 67,736 $ 134,166 Loss on early retirement of debt (b) $ 10,649 $ — $ — (a) Includes payments related to borrowings and leases. (b) In May 2024 , the Group used proceeds from the ABS VIII Notes to repay the outstanding principal of the ABS III & V notes, thereby retiring the ABS III & V notes from the Group’s outstanding debt and resulting in a loss on the early retirement of debt of $10,649 . Diversified ABS III LLC & Diversified ABS V LLC were concurrently dissolved. The ABS VIII Notes are secured by the collateral previously securing the ABS III & V notes. |
FAIR VALUE & FINANCIAL INSTRU_2
FAIR VALUE & FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value and Financial Instruments [Abstract] | |
Summary of Financial Assets | The following table includes the fair value of the Group's financial instruments as of the periods presented: June 30, 2024 December 31, 2023 Cash and cash equivalents $ 3,483 $ 3,753 Trade receivables, net 180,017 190,207 Other non-current assets 13,637 9,172 Other non-current liabilities (a) (4,491) (1,946) Other current liabilities (b) (224,651) (272,101) Derivative financial instruments at fair value (601,436) (557,460) Leases (43,021) (31,122) Borrowings (1,703,495) (1,324,848) Total $ (2,379,957) $ (1,984,345) (a) Excludes $278 for the long-term portion of the value associated with the upfront promote received from Oaktree as of December 31, 2023 . (b) Includes accrued expenses, net revenue clearing and revenue to be distributed. Excludes asset retirement obligations. |
Summary of Financial Liabilities | The following table includes the fair value of the Group's financial instruments as of the periods presented: June 30, 2024 December 31, 2023 Cash and cash equivalents $ 3,483 $ 3,753 Trade receivables, net 180,017 190,207 Other non-current assets 13,637 9,172 Other non-current liabilities (a) (4,491) (1,946) Other current liabilities (b) (224,651) (272,101) Derivative financial instruments at fair value (601,436) (557,460) Leases (43,021) (31,122) Borrowings (1,703,495) (1,324,848) Total $ (2,379,957) $ (1,984,345) (a) Excludes $278 for the long-term portion of the value associated with the upfront promote received from Oaktree as of December 31, 2023 . (b) Includes accrued expenses, net revenue clearing and revenue to be distributed. Excludes asset retirement obligations. |
Basis of Preparation (Details)
Basis of Preparation (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Portion of consideration paid (received) consisting of cash and cash equivalents | $ (9,933) | $ (44,333) | $ (95,749) | |
Proceeds on disposals of natural gas and oil properties and equipment | (4,470) | (1,831) | (4,083) | |
Deferred consideration payments | (550) | (2,620) | ||
Interest paid, classified as financing activities | $ 47,632 | 60,215 | $ 116,784 | |
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% | |||
Sooner State Joint ABS Holdings LLC | OCM Denali Holdings LLC | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Proportion of ownership interest in subsidiary (as a percent) | 48.75% | |||
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% | |||
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% | |||
Revision of Prior Period, Reclassification, Adjustment | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Portion of consideration paid (received) consisting of cash and cash equivalents | 6,830 | |||
Proceeds on disposals of natural gas and oil properties and equipment | 6,830 | |||
Deferred consideration payments | (1,520) | |||
Settled liabilities, contingent liabilities recognised in business combination | (1,520) | |||
Interest paid, classified as financing activities | 800 | |||
Cash outflow for leases | $ (800) |
Material Accounting Policies -
Material Accounting Policies - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Significant Accounting Policies [Abstract] | ||
Cash restricted by asset-backed securitizations | $ 54,618 | $ 35,870 |
Other restricted cash | 358 | 382 |
Total restricted cash | 54,976 | 36,252 |
Current asset | 18,602 | 11,195 |
Non-current asset | $ 36,374 | $ 25,057 |
Acquisitions & Divestitures - 2
Acquisitions & Divestitures - 2024 Acquisition and Divestitures - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 06, 2024 | Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||
Gains (losses) on disposals of property, plant and equipment | $ (7,210) | $ (7,729) | $ (24,146) | ||
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) | (9,933) | ||||
Gains (losses) on disposals of property, plant and equipment | $ (6,852) | $ (10,547) | |||
Oaktree Capital Management | |||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||
Asset acquisition, consideration paid | $ 220,763 | ||||
Transaction costs | 1,166 | ||||
Asset acquisition, borrowings recognised as of acquisition date | 132,576 | ||||
Oaktree Seller's Note | $ 83,348 | ||||
Revenue of asset acquisition since acquisition date | $ 14,845 | ||||
Profit (loss) of asset acquisition since acquisition date | $ 4,907 |
Acquisitions & Divestitures -_2
Acquisitions & Divestitures - 2024 Acquisition Schedule (Details) - Oaktree Capital Management $ in Thousands | Jun. 06, 2024 USD ($) |
Consideration paid | |
Cash consideration | $ 176,653 |
Oaktree Seller's Note | 83,348 |
Elimination of Oaktree liability | (39,238) |
Total consideration | 220,763 |
Net assets acquired | |
Natural gas and oil properties | 314,714 |
Asset retirement obligation, asset portion | 63,770 |
Property, plant and equipment | 457 |
Restricted cash | 6,153 |
Derivative financial instruments, net | 39,841 |
Asset retirement obligation, liability portion | (63,770) |
Borrowings | (132,576) |
Other current liabilities | (7,826) |
Net assets acquired | $ 220,763 |
Acquisitions & Divestitures -_3
Acquisitions & Divestitures - 2023 Acquisition and Divestitures - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2023 | Jul. 17, 2023 | Jun. 27, 2023 | Mar. 01, 2023 | Dec. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Nov. 30, 2023 | |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||
Total revenue | $ 368,674 | $ 487,305 | $ 868,263 | ||||||
Portion of consideration paid (received) consisting of cash and cash equivalents | (9,933) | (44,333) | (95,749) | ||||||
Gain (loss) on sale of equity interest | 0 | 0 | 18,440 | ||||||
Gains (losses) on financial assets at fair value through profit or loss | 2,433 | 0 | 4,610 | ||||||
Gain (loss) on natural gas and oil property and equipment | 7,210 | $ 7,729 | 24,146 | ||||||
DP Lion Equity Holdco LLC | |||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||
Portion of consideration paid (received) consisting of cash and cash equivalents | $ 30,000 | ||||||||
Gain (loss) on sale of equity interest | $ 18,440 | ||||||||
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 property 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) | (9,933) | ||||||||
Gain (loss) on natural gas and oil property and equipment | $ 6,852 | 10,547 | |||||||
Proceeds from divestiture | $ 12,100 | ||||||||
DP Lion 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% | ||||||
DP Lion Equity Holdco LLC | |||||||||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||||||||
Proceeds from divesture of business | $ (30,000) | ||||||||
Proportion of ownership interest in subsidiary (as a percent) | 20% | ||||||||
Investment in subsidiary | $ 7,500 | $ 7,500 | $ 7,500 | ||||||
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 | ||||||||
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 | ||||||||
Total revenue | $ 45,589 |
Acquisitions & Divestitures - S
Acquisitions & Divestitures - Subsequent events (Details) - Major purchases of assets shares in Thousands, $ in Thousands | Jul. 10, 2024 USD ($) shares |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |
Shares authorized and reserved for issuance (in shares) | shares | 2,400 |
Crescent Pass Energy | |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |
Consideration transferred, acquisition-date fair value | $ | $ 106,000 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total revenue | $ 368,674 | $ 487,305 | $ 868,263 |
Total commodity revenue | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total revenue | 336,128 | 456,041 | 802,399 |
Natural gas | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total revenue | 209,008 | 334,588 | 557,167 |
NGLs | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total revenue | 70,935 | 67,159 | 141,321 |
Oil | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total revenue | 56,185 | 54,294 | 103,911 |
Midstream | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total revenue | 17,416 | 16,662 | 30,565 |
Other | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total revenue | 15,130 | 14,602 | 35,299 |
Third-party plugging revenue | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total revenue | 7,776 | 11,550 | 28,360 |
Other revenue | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total revenue | $ 7,354 | $ 3,052 | $ 6,939 |
Expenses by Nature (Details)
Expenses by Nature (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total operating expense | $ 196,112 | $ 227,299 | $ 440,562 |
Total depreciation, depletion and amortization | 119,220 | 115,036 | 224,546 |
Total G&A | 58,326 | 55,156 | 119,722 |
Recurring allowance for credit losses | 0 | 0 | 8,478 |
Total expense | 373,658 | 397,491 | 793,308 |
Aggregate remuneration (including Directors): | |||
Wages and salaries | 62,662 | 61,135 | 124,834 |
Payroll taxes | 5,456 | 5,238 | 10,163 |
Benefits | 14,778 | 12,560 | 31,912 |
Total employees and benefits expense | 82,896 | 78,933 | 166,909 |
LOE | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total operating expense | 98,511 | 111,637 | 213,078 |
Production taxes | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total operating expense | 19,993 | 31,307 | 61,474 |
Midstream operating expense | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total operating expense | 35,563 | 34,391 | 69,792 |
Transportation expense | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total operating expense | 42,045 | 49,964 | 96,218 |
Depreciation and amortization | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total depreciation, depletion and amortization | 29,471 | 27,503 | 56,453 |
Depletion | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total depreciation, depletion and amortization | 89,749 | 87,533 | 168,093 |
Employees administrative costs and professional services | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total G&A | 40,482 | 38,497 | 78,659 |
Costs associated with acquisitions | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total G&A | 3,724 | 8,866 | 16,775 |
Other adjusting costs | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total G&A | 10,451 | 3,376 | 17,794 |
Non-cash equity compensation | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total G&A | $ 3,669 | $ 4,417 | $ 6,494 |
Taxation - Narrative (Details)
Taxation - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax [Abstract] | |||
Effective tax rate | 119.10% | 23.80% | 24.10% |
Income tax benefit (expense) | $ 97,997 | $ (197,324) | $ (240,643) |
Increase in tax benefit | $ 295,321 |
Taxation - Schedule of provisio
Taxation - Schedule of provision for income taxes (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Current income tax (benefit) expense | |||
Federal (benefit) expense | $ 4,568 | $ 1,993 | $ 7,289 |
State (benefit) expense | 4,217 | 2,128 | 5,902 |
Foreign - UK (benefit) expense | 0 | 17 | 0 |
Total current income tax (benefit) expense | 8,785 | 4,138 | 13,191 |
Deferred income tax (benefit) expense | |||
Federal (benefit) expense | (98,109) | 172,067 | 202,133 |
State (benefit) expense | (8,722) | 21,119 | 25,460 |
Foreign - UK (benefit) expense | 49 | 0 | (141) |
Total deferred income tax (benefit) expense | (106,782) | 193,186 | 227,452 |
Total income tax (benefit) expense | $ (97,997) | $ 197,324 | $ 240,643 |
Taxation - Schedule of effectiv
Taxation - Schedule of effective tax rates reconciliation (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax [Abstract] | |||
Income (loss) before taxation | $ (82,252) | $ 828,256 | $ 1,000,344 |
Income tax benefit (expense) | $ 97,997 | $ (197,324) | $ (240,643) |
Effective tax rate | 119.10% | 23.80% | 24.10% |
Expected tax at statutory U.S. federal income tax rate | 21% | 21% | 21% |
State income taxes, net of federal tax benefit | 2.10% | 3% | 3.10% |
Federal credits | 96.90% | 0% | 0% |
Other, net | (0.90%) | (0.20%) | 0% |
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 | Jun. 30, 2024 USD ($) $ / Mcfe MMBTU bbl $ / bbl | Dec. 31, 2023 USD ($) |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Fair value, assets | $ 109,930 | $ 112,060 |
Fair value, liabilities | (711,366) | $ (669,520) |
Fair value, assets (liabilities), net | $ (601,436) | |
Weighted Average Price, Btu Conversion Factor | 1.03 | |
Natural Gas Contracts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 1,379,814 | |
Fair value, assets (liabilities), net | $ (539,163) | |
NGLs Contracts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 12,675 | |
Fair value, assets (liabilities), net | $ (37,582) | |
Oil Contracts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 2,729 | |
Fair value, assets (liabilities), net | $ 25,016 | |
Interest | SOFR interest rate swap | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Fair value, assets | 325 | |
Principal Hedged | $ 5,520 | |
Fixed Rate | 4.15% | |
For the remainder of 2024 | Natural Gas Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 108,861 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.42 | |
Fair value, assets | $ 51,068 | |
For the remainder of 2024 | Natural Gas Contracts | Stand-alone calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 0 | |
Fair value, liabilities | $ (7,254) | |
For the remainder of 2024 | Natural Gas Contracts | Basis swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 95,228 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | (0.68) | |
Fair value, assets | $ 10,808 | |
For the remainder of 2024 | NGLs Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 1,809 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 37.24 | |
Fair value, liabilities | $ (4,634) | |
For the remainder of 2024 | NGLs Contracts | Stand-alone calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 460 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 31.29 | |
Fair value, liabilities | $ (2,736) | |
For the remainder of 2024 | Oil Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 372 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 64.52 | |
Fair value, liabilities | $ (5,370) | |
For the remainder of 2024 | Oil Contracts | Two-way collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 156 | |
Fair value, assets | $ 66 | |
For the remainder of 2024 | Oil 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 | 70 | |
For the remainder of 2024 | Oil 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 | 91.20 | |
For the remainder of 2024 | Oil Contracts | Sold calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 92 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 70 | |
Fair value, liabilities | $ (942) | |
2025 | Natural Gas Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 175,398 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.15 | |
Fair value, liabilities | $ (67,874) | |
2025 | Natural Gas Contracts | Two-way collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 3,650 | |
Fair value, assets | $ 320 | |
2025 | 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 | 3.59 | |
2025 | 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 | 3.79 | |
2025 | Natural Gas Contracts | Stand-alone calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 2,164 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.62 | |
Fair value, liabilities | $ (16,680) | |
2025 | Natural Gas Contracts | Basis swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 105,478 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | (0.77) | |
Fair value, liabilities | $ (1,359) | |
2025 | NGLs Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 3,347 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 33.81 | |
Fair value, liabilities | $ (10,860) | |
2025 | NGLs Contracts | Stand-alone calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 913 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 30.07 | |
Fair value, liabilities | $ (6,369) | |
2025 | Oil Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 739 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 61.07 | |
Fair value, liabilities | $ (8,630) | |
2025 | Oil Contracts | Sold calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 110 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 70.50 | |
Fair value, liabilities | $ (1,015) | |
2026 | Natural Gas Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 139,307 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.19 | |
Fair value, liabilities | $ (89,444) | |
2026 | Natural Gas Contracts | Two-way collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 3,650 | |
Fair value, liabilities | $ (309) | |
2026 | 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 | 5.13 | |
2026 | Natural Gas Contracts | Collars, Purchased Calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.08 | |
2026 | Natural Gas Contracts | Stand-alone calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 12,477 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.59 | |
Fair value, liabilities | $ (30,375) | |
2026 | Natural Gas Contracts | Basis swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 21,071 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | (0.53) | |
Fair value, liabilities | $ (1,056) | |
2026 | NGLs Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 3,050 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 32.02 | |
Fair value, liabilities | $ (6,615) | |
2026 | NGLs Contracts | Stand-alone calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 913 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 27.83 | |
Fair value, liabilities | $ (1,862) | |
2026 | Oil Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 600 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 61.07 | |
Fair value, liabilities | $ (5,206) | |
2026 | Oil Contracts | Sold calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 110 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 67.50 | |
Fair value, liabilities | $ (1,124) | |
2027 | Natural Gas Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 122,503 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.22 | |
Fair value, liabilities | $ (74,898) | |
2027 | Natural Gas Contracts | Two-way collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 6,409 | |
Fair value, assets | $ 910 | |
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 | 3.52 | |
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 | 5.87 | |
2027 | Natural Gas Contracts | Stand-alone calls | ||
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 | 3.59 | |
Fair value, liabilities | $ (28,808) | |
2027 | Natural Gas Contracts | Basis swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 8,110 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | (0.39) | |
Fair value, liabilities | $ (404) | |
2027 | NGLs Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 1,916 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 33.21 | |
Fair value, liabilities | $ (3,820) | |
2027 | Oil Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 550 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 62.34 | |
Fair value, liabilities | $ (2,795) | |
2028 | Natural Gas Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 99,245 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.85 | |
Fair value, liabilities | $ (83,878) | |
2028 | Natural Gas Contracts | Two-way collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 10,502 | |
Fair value, assets | $ 6,023 | |
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 | 4.10 | |
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 | 6.61 | |
2028 | Natural Gas Contracts | Stand-alone calls | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 0 | |
Fair value, liabilities | $ (1,527) | |
2028 | Natural Gas Contracts | Purchased puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 7,978 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.08 | |
Fair value, assets | $ 2,925 | |
2028 | Natural Gas Contracts | Sold puts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 7,978 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.08 | |
Fair value, liabilities | $ (2,925) | |
2028 | Natural Gas Contracts | Basis swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 7,557 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | (0.39) | |
Fair value, liabilities | $ (461) | |
2028 | NGLs Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | bbl | 267 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / bbl | 28.91 | |
Fair value, liabilities | $ (686) | |
2029 | Natural Gas Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 36,066 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.36 | |
Fair value, liabilities | $ (39,917) | |
2029 | Natural Gas Contracts | Two-way collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 28,251 | |
Fair value, assets | $ 5,728 | |
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 | 3.72 | |
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 | 5.01 | |
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 | 2.80 | |
Fair value, assets | $ 9,732 | |
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 | 1.85 | |
Fair value, liabilities | $ (2,165) | |
2029 | Natural Gas Contracts | Basis swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 3,594 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | (0.39) | |
Fair value, liabilities | $ (343) | |
2030 | Natural Gas Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 11,726 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 2.89 | |
Fair value, liabilities | $ (7,327) | |
2030 | Natural Gas Contracts | Two-way collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 30,099 | |
Fair value, assets | $ 3,301 | |
2030 | 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 | 3.59 | |
2030 | 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 | 4.21 | |
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 | 2.81 | |
Fair value, assets | $ 5,146 | |
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 | 1.85 | |
Fair value, liabilities | $ (1,269) | |
2031 | Natural Gas Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 5,909 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.70 | |
Fair value, assets | $ 310 | |
2031 | Natural Gas Contracts | Two-way collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 38,595 | |
Fair value, assets | $ 3,817 | |
2031 | 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 | 3.59 | |
2031 | 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 | 4.19 | |
2032 | Natural Gas Contracts | Swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 2,824 | |
Weighted Average Price (in USD per Mcf or USD per Bbl) | $ / Mcfe | 3.70 | |
Fair value, assets | $ 274 | |
2032 | Natural Gas Contracts | Two-way collars | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Volume (in Mcf or Bbl) | MMBTU | 9,190 | |
Fair value, liabilities | $ (625) | |
2032 | 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 | 3.59 | |
2032 | 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 | 4.19 | |
10/1/2024-9/30/2028 | 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 | 2.79 | |
Fair value, liabilities | $ (11,287) | |
1/1/2025-12/31/2029 | 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 | 2.65 | |
Fair value, liabilities | $ (33,024) | |
4/1/2026-3/31/2030 | 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 | 2.46 | |
Fair value, liabilities | $ (92,714) | |
4/1/2030-3/31/2032 | 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 | 2.46 | |
Fair value, liabilities | $ (43,602) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of net derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Non-current assets | $ 39,617 | $ 24,401 |
Current assets | 70,313 | 87,659 |
Total assets | 109,930 | 112,060 |
Liabilities: | ||
Non-current liabilities | (611,576) | (623,684) |
Current liabilities | (99,790) | (45,836) |
Total liabilities | (711,366) | (669,520) |
Net assets (liabilities) - non-current | (571,959) | (599,283) |
Net assets (liabilities) - current | (29,477) | 41,823 |
Total net assets (liabilities) | $ (601,436) | $ (557,460) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of effects of offsetting (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Presented without Effects of Netting | ||
Non-current assets | $ 128,365 | $ 103,008 |
Current assets | 112,331 | 198,806 |
Total assets | 240,696 | 301,814 |
Non-current liabilities | (700,325) | (678,053) |
Current liabilities | (141,807) | (181,221) |
Total liabilities | (842,132) | (859,274) |
Total net assets (liabilities) | (601,436) | (557,460) |
Effects of Netting | ||
Non-current assets | (88,748) | (78,607) |
Current assets | (42,018) | (111,147) |
Total assets | (130,766) | (189,754) |
Non-current liabilities | 88,749 | 54,369 |
Current liabilities | 42,017 | 135,385 |
Total liabilities | 130,766 | 189,754 |
Total net assets (liabilities) | 0 | 0 |
As Presented with Effects of Netting | ||
Non-current assets | 39,617 | 24,401 |
Current assets | 70,313 | 87,659 |
Total assets | 109,930 | 112,060 |
Non-current liabilities | (611,576) | (623,684) |
Current liabilities | (99,790) | (45,836) |
Total liabilities | (711,366) | (669,520) |
Total net assets (liabilities) | $ (601,436) | $ (557,460) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of gain (loss) on derivative financial instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Total gain (loss) on settled derivative instruments | $ 77,849 | $ 51,180 | $ 174,821 |
Gain (loss) on fair value adjustments of unsettled financial instruments | (80,117) | 760,933 | 905,695 |
Total gain (loss) on derivative financial instruments | (2,268) | 812,113 | 1,080,516 |
Commodity derivatives settlements | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Total gain (loss) on settled derivative instruments | 77,749 | 54,525 | 178,064 |
Interest rate swaps | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Total gain (loss) on settled derivative instruments | 100 | (2,824) | (2,722) |
Foreign currency hedges | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Total gain (loss) on settled derivative instruments | $ 0 | $ (521) | $ (521) |
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 | Dec. 31, 2023 | |
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 |
Share Capital - Narrative (Deta
Share Capital - Narrative (Details) £ / shares in Units, $ / shares in Units, £ in Thousands, shares in Thousands, $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Feb. 28, 2023 USD ($) $ / shares shares | Feb. 28, 2023 GBP (£) £ / shares shares | Jun. 30, 2024 USD ($) $ / shares shares | Jun. 30, 2024 GBP (£) shares class_of_stock common_stock_vote £ / shares | Jun. 30, 2023 USD ($) shares $ / shares | |
Disclosure of classes of share capital [line items] | |||||
Number of classes of stock | class_of_stock | 1 | ||||
Number of votes per share | common_stock_vote | 1 | ||||
Par value per share (in gbp per share) | £ / shares | £ 0.20 | ||||
New shares issued (in shares) | 6,422 | 6,422 | |||
Issued price per shares (in USD/GBP per share) | (per share) | $ 25.34 | £ 21 | |||
Gross proceeds | $ 162,757 | £ 134,866 | |||
Payments for share issue costs | $ | $ 5,969 | ||||
Number of shares purchased (in shares) | 619 | 619 | 10 | ||
Purchase price per share (in USD/GBP per share) | $ / shares | $ 13.09 | $ 21.30 | |||
Payment for purchase of treasury shares | $ | $ 8,094 | $ 213 | |||
Employee Benefit Trust | |||||
Disclosure of classes of share capital [line items] | |||||
Number of shares issued (in shares) | 116 | 116 | 296 | ||
Number of shares purchased (in shares) | 197 | 197 | 0 | ||
Purchase price per share (in USD/GBP per share) | (per share) | $ 13.10 | £ 10.41 | |||
Payment for repurchasing shares | $ 2,582 | £ 2,053 | |||
Number of shares outstanding (in shares) | 448 | 406 |
Share Capital - Summary of shar
Share Capital - Summary of share capital, net of customary transaction costs (Details) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Number of Shares | |||
Number of shares outstanding at beginning of period (in shares) | 47,556 | 41,447 | 41,447 |
Number of shares outstanding at end of period (in shares) | 46,856 | 48,155 | 47,556 |
Changes in equity | |||
Equity at beginning of period | $ 598,410 | $ (137,724) | $ (137,724) |
Issuance of shares and share capital | 2,609 | (1,807) | 3,047 |
Repurchase of shares | (2,582) | ||
Equity at end of period | $ 548,298 | $ 560,998 | $ 598,410 |
Equity placement | |||
Number of Shares | |||
Increase (decrease) in number of shares outstanding (in shares) | 6,422 | 6,422 | |
Equity compensation | |||
Number of Shares | |||
Increase (decrease) in number of shares outstanding (in shares) | 116 | 296 | 334 |
EBT | |||
Number of Shares | |||
Increase (decrease) in number of shares outstanding (in shares) | (197) | ||
Share buyback program | |||
Number of Shares | |||
Increase (decrease) in number of shares outstanding (in shares) | (619) | (10) | (647) |
Total Share Capital | |||
Changes in equity | |||
Equity at beginning of period | $ 12,897 | $ 11,503 | $ 11,503 |
Equity at end of period | 12,793 | 13,056 | 12,897 |
Total Share Capital | Equity placement | |||
Changes in equity | |||
Issuance of shares and share capital | 1,555 | 1,555 | |
Total Share Capital | Equity compensation | |||
Changes in equity | |||
Issuance of shares and share capital | 0 | 0 | 0 |
Total Share Capital | EBT | |||
Changes in equity | |||
Repurchase of shares | 0 | ||
Total Share Capital | Share buyback program | |||
Changes in equity | |||
Repurchase of shares | (104) | (2) | (161) |
Total Share Premium | |||
Changes in equity | |||
Equity at beginning of period | 1,208,192 | 1,052,959 | 1,052,959 |
Equity at end of period | 1,208,192 | 1,208,192 | 1,208,192 |
Total Share Premium | Equity placement | |||
Changes in equity | |||
Issuance of shares and share capital | 155,233 | 155,233 | |
Total Share Premium | Equity compensation | |||
Changes in equity | |||
Issuance of shares and share capital | 0 | 0 | 0 |
Total Share Premium | EBT | |||
Changes in equity | |||
Repurchase of shares | 0 | ||
Total Share Premium | Share buyback program | |||
Changes in equity | |||
Repurchase of shares | $ 0 | $ 0 | $ 0 |
Dividends - Summary of dividend
Dividends - Summary of dividends declared and paid (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 28, 2024 £ / shares shares | Jun. 28, 2024 USD ($) $ / shares shares | Mar. 28, 2024 £ / shares shares | Mar. 28, 2024 USD ($) $ / shares shares | 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 | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 shares | |
Dividends1 [Abstract] | ||||||||||||||||
Dividend per Share (in USD/GBP per share) | (per share) | £ 0.2283 | $ 0.290 | £ 0.6844 | $ 0.875 | £ 0.6840 | $ 0.875 | £ 0.7040 | $ 0.875 | £ 0.6860 | $ 0.875 | £ 0.7220 | $ 0.875 | ||||
Shares Outstanding (in shares) | 47,063 | 47,063 | 47,221 | 47,221 | 47,857 | 47,857 | 48,157 | 48,157 | 48,155 | 48,155 | 47,869 | 47,869 | 46,856 | 48,155 | 47,556 | 41,447 |
Shares Outstanding (in shares) | 48,165 | 48,165 | 48,165 | |||||||||||||
Gross Dividends Paid | $ | $ 13,648 | $ 41,319 | $ 41,875 | $ 42,137 | $ 42,144 | $ 41,885 | $ 54,967 | $ 84,029 | $ 168,041 |
Dividends - Narrative (Details)
Dividends - Narrative (Details) | Dec. 27, 2024 $ / shares | Sep. 26, 2024 $ / shares | Jun. 28, 2024 $ / shares | Jun. 28, 2024 £ / shares | Mar. 28, 2024 $ / shares | 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 |
Dividends [Line Items] | ||||||||||||||
Dividend per share (in USD per share) | (per share) | $ 0.290 | £ 0.2283 | $ 0.875 | £ 0.6844 | $ 0.875 | £ 0.6840 | $ 0.875 | £ 0.7040 | $ 0.875 | £ 0.6860 | $ 0.875 | £ 0.7220 | ||
Forecast | ||||||||||||||
Dividends [Line Items] | ||||||||||||||
Dividend per share (in USD per share) | $ 0.29 | |||||||||||||
Major ordinary share transactions | ||||||||||||||
Dividends [Line Items] | ||||||||||||||
Dividend per share (in USD per share) | $ 0.29 |
Asset Retirement Obligations- N
Asset Retirement Obligations- Narrative (Details) | Jun. 30, 2024 | Dec. 31, 2023 |
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 | 0.037 | 0.034 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Provision for Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | ||
Balance at beginning of period | $ 506,648 | $ 457,083 |
Additions | 63,770 | 3,250 |
Accretion | 14,667 | 26,926 |
Plugging costs | (3,587) | (5,961) |
Divestitures | 0 | (17,300) |
Revisions to estimate | (65,407) | 42,650 |
Balance at end of period | 516,091 | 506,648 |
LESS: Current asset retirement obligations | 5,156 | 5,402 |
Non-current asset retirement obligations | 510,935 | 501,246 |
Increase (decrease) in liability | (65,407) | 42,650 |
Increase (decrease) attributable to change in discount rate | $ (65,407) | 27,830 |
Increase (decrease) attributable to change in cost revisions | 16,059 | |
Increase (decrease) attributable to change in timing | $ (1,239) |
Asset Retirement Obligations _2
Asset Retirement Obligations - Schedule of Changes to Assumptions for the Estimation of the Group’s Asset Retirement Obligations (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 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 | $ (132,932) |
Increase (decrease) in asset retirement obligation due to reasonably possible 10% decrease in measurement input | 924,398 |
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 | 32,694 |
Increase (decrease) in asset retirement obligation due to reasonably possible 10% decrease in measurement input | (35,590) |
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 | 51,516 |
Increase (decrease) in asset retirement obligation due to reasonably possible 10% decrease in measurement input | $ (51,516) |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands | Jun. 06, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | 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 | $ 1,703,495 | $ 1,324,848 | |||||||
Less: Current portion of long-term debt | (211,574) | (200,822) | |||||||
Total non-current borrowings, net | 1,442,986 | 1,075,805 | |||||||
Oaktree Capital Management | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Asset acquisition, borrowings recognised as of acquisition date | $ 132,576 | ||||||||
Oaktree Seller's Note | $ 83,348 | ||||||||
Deferred financing costs | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings | (39,267) | (41,123) | |||||||
Original issue discounts | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings | $ (9,668) | $ (7,098) | |||||||
Credit Facility | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Interest rate | 8.92% | 8.66% | |||||||
Borrowings | $ 268,000 | $ 159,000 | |||||||
ABS I Notes | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Interest rate | 5% | 5% | |||||||
Borrowings | $ 90,847 | 100,898 | |||||||
ABS II Notes | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Interest rate | 5.25% | 5.25% | |||||||
Borrowings | $ 114,945 | 125,922 | |||||||
ABS III Notes | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Interest rate | 4.875% | 4.875% | |||||||
Borrowings | $ 0 | 274,710 | |||||||
ABS IV Notes | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Interest rate | 4.95% | 4.95% | |||||||
Borrowings | $ 88,418 | 99,951 | |||||||
ABS V Notes | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Interest rate | 5.78% | 5.78% | |||||||
Borrowings | $ 0 | 290,913 | |||||||
ABS VI Notes | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Interest rate | 7.50% | 7.50% | |||||||
Borrowings | $ 273,805 | 159,357 | |||||||
ABS VIII Notes | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Interest rate | 7.28% | ||||||||
Borrowings | $ 607,740 | 0 | |||||||
ABS Warehouse Facility | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Interest rate | 8.07% | ||||||||
Borrowings | $ 71,000 | 0 | |||||||
Term Loan I | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Interest rate | 6.50% | 6.50% | |||||||
Borrowings | $ 98,023 | 106,470 | |||||||
Deferred consideration and miscellaneous | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings | $ 90,717 | $ 7,627 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Jun. 06, 2024 USD ($) | Jun. 30, 2024 USD ($) performance_target component | May 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | May 31, 2020 USD ($) | Apr. 30, 2020 USD ($) | Jun. 30, 2024 USD ($) MtCO2e performance_target component | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Nov. 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 | $ 1,703,495 | $ 1,324,848 | $ 1,703,495 | $ 1,324,848 | |||||||||||
Proceeds from borrowings | 1,238,348 | $ 840,230 | 1,537,230 | ||||||||||||
Interest expense on borrowings | 52,494 | 58,768 | 117,808 | ||||||||||||
Loss on early retirement of debt | (10,649) | 0 | 0 | ||||||||||||
Loss on early retirement of debt | (10,649) | ||||||||||||||
Proceeds from divestitures | 9,933 | 44,333 | 95,749 | ||||||||||||
Debt issuance cost | (13,988) | (1,730) | $ (13,776) | ||||||||||||
Oaktree Capital Management | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Asset acquisition, borrowings recognised as of acquisition date | $ 132,576 | ||||||||||||||
Oaktree Seller's Note | $ 83,348 | ||||||||||||||
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% | ||||||||||||||
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 | 385,000 | 385,000 | |||||||||||||
Available borrowing | 103,088 | 103,088 | |||||||||||||
Borrowings | $ 268,000 | $ 159,000 | $ 268,000 | $ 159,000 | |||||||||||
Borrowings covenant, maximum total debt to EBITDAX ratio | 3.25 | ||||||||||||||
Borrowings covenant, minimum current assets to current liabilities ratio | 1 | ||||||||||||||
Interest rate | 8.92% | 8.66% | 8.92% | 8.66% | |||||||||||
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 | 20% | ||||||||||||||
Credit Facility | Covenant Three | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Borrowings covenant, maximum leverage ratio | shares | 2 | ||||||||||||||
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 | (5) | ||||||||||||||
Credit Facility | Bottom of range | Covenant Two | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Borrowings covenant, maximum leverage ratio | 1.5 | ||||||||||||||
Credit Facility | Top of range | Covenant Two | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Borrowings covenant, maximum leverage ratio | 2 | ||||||||||||||
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 | $ 13,912 | $ 13,912 | |||||||||||||
Term Loan I | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Notional amount | $ 160,000 | ||||||||||||||
Borrowings | $ 98,023 | $ 106,470 | $ 98,023 | $ 106,470 | |||||||||||
Discount percentage | 1% | ||||||||||||||
Proceeds from borrowings | $ 158,400 | ||||||||||||||
Interest rate | 6.50% | 6.50% | 6.50% | ||||||||||||
Interest expense on borrowings | $ 3,398 | 3,911 | 7,573 | ||||||||||||
Borrowings, fairvalue | 93,152 | ||||||||||||||
ABS I Notes | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Notional amount | $ 200,000 | ||||||||||||||
Borrowings | $ 90,847 | 100,898 | $ 90,847 | 100,898 | |||||||||||
Interest rate | 5% | 5% | 5% | ||||||||||||
Interest expense on borrowings | $ 2,419 | 2,993 | 5,660 | ||||||||||||
Borrowings, fairvalue | 86,852 | ||||||||||||||
Excess cash flow payments | 1,536 | ||||||||||||||
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 | $ 114,945 | 125,922 | $ 114,945 | 125,922 | |||||||||||
Discount percentage | 2.775% | ||||||||||||||
Proceeds from borrowings | $ 183,617 | ||||||||||||||
Interest rate | 5.25% | 5.25% | 5.25% | ||||||||||||
Interest expense on borrowings | $ 3,557 | 4,174 | 8,040 | ||||||||||||
Borrowings, fairvalue | 108,782 | ||||||||||||||
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 | $ 0 | 274,710 | $ 0 | 274,710 | |||||||||||
Interest rate | 4.875% | 4.875% | 4.875% | ||||||||||||
Interest expense on borrowings | $ 5,507 | 7,509 | 14,515 | ||||||||||||
Excess cash flow payments | 0 | ||||||||||||||
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 | $ 88,418 | 99,951 | $ 88,418 | 99,951 | |||||||||||
Interest rate | 4.95% | 4.95% | 4.95% | ||||||||||||
Interest expense on borrowings | $ 2,342 | 3,033 | 5,703 | ||||||||||||
Borrowings, fairvalue | 81,522 | ||||||||||||||
Excess cash flow payments | $ 0 | ||||||||||||||
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% | ||||||||||||||
Increase (decrease) in interest rate basis for failure to achieve sustainability-linked performance targets | (5) | ||||||||||||||
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 | $ 0 | 290,913 | $ 0 | 290,913 | |||||||||||
Interest rate | 5.78% | 5.78% | 5.78% | ||||||||||||
Interest expense on borrowings | $ 6,792 | 10,273 | 19,332 | ||||||||||||
Excess cash flow payments | 0 | ||||||||||||||
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 | $ 273,805 | 159,357 | $ 273,805 | 159,357 | |||||||||||
Discount percentage | 2.63% | ||||||||||||||
Interest rate | 7.50% | 7.50% | 7.50% | ||||||||||||
Interest expense on borrowings | $ 7,170 | $ 8,257 | 15,433 | ||||||||||||
Borrowings, fairvalue | 270,740 | ||||||||||||||
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 | 25 | ||||||||||||||
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% | ||||||||||||||
ABS III Notes And ABS V Notes | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Loss on early retirement of debt | $ 10,649 | ||||||||||||||
ABS VIII Notes | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Borrowings | $ 607,740 | 0 | $ 607,740 | 0 | |||||||||||
Interest rate | 7.28% | 7.28% | |||||||||||||
Interest expense on borrowings | $ 3,948 | ||||||||||||||
Borrowings, fairvalue | 617,579 | ||||||||||||||
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 | 25 | ||||||||||||||
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 VIII 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 | 1.45 | ||||||||||||||
ABS VIII 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 VIII Notes | Covenant Three | |||||||||||||||
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 | 1.50 | ||||||||||||||
ABS VIII 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 | 25% | ||||||||||||||
ABS VIII 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 | 25% | ||||||||||||||
ABS VIII Notes | Bottom of range | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Percentage of excess payments to be made if performance metrics are met | 25% | ||||||||||||||
ABS VIII Notes | Bottom of range | Covenant Two | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Debt service coverage ratio | 1.45 | ||||||||||||||
ABS VIII 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 VIII Notes | Top of range | Covenant Two | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Debt service coverage ratio | 1.50 | ||||||||||||||
ABS VIII Notes, Class A-1 | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Notional amount | $ 400,000 | ||||||||||||||
Interest rate | 7.076% | ||||||||||||||
ABS VIII Notes, Class A-2 | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Notional amount | $ 210,000 | ||||||||||||||
Interest rate | 7.67% | ||||||||||||||
ABS Warehouse Facility | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Borrowings | $ 71,000 | $ 0 | $ 71,000 | $ 0 | |||||||||||
Interest rate | 8.07% | 8.07% | |||||||||||||
Proceeds from non-current borrowings, gross | $ 71,000 | ||||||||||||||
Proceeds from non-current borrowings | 66,343 | ||||||||||||||
Borrowing facilities, restricted cash interest reserve | (3,060) | ||||||||||||||
Debt issuance cost | $ (1,597) | ||||||||||||||
ABS Warehouse Facility | SOFR | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Interest rate spread | 3.75% | 3.75% | |||||||||||||
Oaktree Sellers Note | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Interest rate | 8% | 8% | |||||||||||||
Interest costs incurred | $ 556 |
Borrowings - Schedule of Maturi
Borrowings - Schedule of Maturity of Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 1,703,495 | $ 1,324,848 |
Not later than one year | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 211,574 | 200,822 |
Later than one year and not later than five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 890,810 | 864,264 |
Later than five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 601,111 | $ 259,762 |
Borrowings - Schedule of Financ
Borrowings - Schedule of Finance Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Disclosure of detailed information about borrowings [abstract] | |||
Interest expense, net of capitalized and income amounts | $ 52,494 | $ 58,768 | $ 117,808 |
Amortization of discount and deferred finance costs | 8,087 | 8,968 | 16,358 |
Total finance costs | 60,581 | 67,736 | 134,166 |
Loss on early retirement of debt | 10,649 | $ 0 | $ 0 |
Loss on early retirement of debt | $ (10,649) |
Borrowings - Schedule of Reconc
Borrowings - Schedule of Reconciliation of Borrowings (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Disclosure of detailed information about borrowings [abstract] | |||
Balance at beginning of period | $ 1,276,627 | $ 1,440,329 | $ 1,440,329 |
Acquired as part of an acquisition | 215,924 | 0 | 0 |
Sale of equity interest | 0 | 0 | (154,966) |
Proceeds from borrowings | 1,238,348 | 840,230 | 1,537,230 |
Repayments of borrowings | (1,076,897) | (782,990) | (1,547,912) |
Costs incurred to secure financing | (13,988) | (1,730) | (13,776) |
Amortization of discount and deferred financing costs | 8,087 | 8,968 | 16,358 |
Cash paid for interest | (47,632) | (60,215) | (116,784) |
Finance costs and other | 54,091 | 60,017 | 116,148 |
Balance at end of period | $ 1,654,560 | $ 1,504,609 | $ 1,276,627 |
FAIR VALUE & FINANCIAL INSTRU_3
FAIR VALUE & FINANCIAL INSTRUMENTS - Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | $ 3,816,463 | $ 3,474,022 |
Liabilities | (3,268,165) | (2,875,612) |
Financial Instruments | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total | (2,379,957) | (1,984,345) |
Cash and cash equivalents | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 3,483 | 3,753 |
Trade receivables and accrued income | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 180,017 | 190,207 |
Other non-current assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 13,637 | 9,172 |
Other non-current liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | (4,491) | (1,946) |
Other non-current liabilities | Oaktree Capital Management | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Upfront promote received | 278 | |
Other current liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | (224,651) | (272,101) |
Derivative financial instruments at fair value | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | (601,436) | (557,460) |
Leases | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | (43,021) | (31,122) |
Borrowings | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | $ (1,703,495) | $ (1,324,848) |