Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 07, 2013 | |
Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'CRK | ' |
Entity Registrant Name | 'COMSTOCK RESOURCES INC | ' |
Entity Central Index Key | '0000023194 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 47,684,516 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and Cash Equivalents | $228,353 | $4,471 |
Accounts Receivable: | ' | ' |
Oil and gas sales | 39,770 | 35,734 |
Joint interest operations | 49,757 | 5,608 |
Marketable Securities | ' | 12,312 |
Derivative Financial Instruments | ' | 11,651 |
Assets of Discontinued Operations | ' | 7,568 |
Other Current Assets | 7,300 | 5,310 |
Total current assets | 325,180 | 82,654 |
Property and Equipment: | ' | ' |
Unevaluated oil and gas properties | 73,562 | 112,851 |
Oil and gas properties, successful efforts method | 3,631,009 | 3,373,695 |
Other | 18,612 | 18,628 |
Accumulated depreciation, depletion and amortization | -1,786,370 | -1,546,487 |
Net property and equipment | 1,936,813 | 1,958,687 |
Assets of Discontinued Operations | ' | 511,366 |
Derivative Financial Instruments | 1,820 | ' |
Other Assets | 13,576 | 19,944 |
Total Assets | 2,277,389 | 2,572,651 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts Payable | 120,164 | 70,552 |
Deferred Income Taxes | ' | 5,340 |
Accrued Liabilities | 60,686 | 37,001 |
Derivative Financial Instruments | 2,131 | ' |
Current Portion of Long-term Debt | 195,637 | ' |
Liabilities of Discontinued Operations | ' | 33,280 |
Total current liabilities | 378,618 | 146,173 |
Long-term Debt | 688,260 | 1,324,383 |
Deferred Income Taxes | 198,942 | 149,901 |
Reserve for Future Abandonment Costs | 17,147 | 16,387 |
Other Non-Current Liabilities | 2,183 | 2,273 |
Total liabilities | 1,285,150 | 1,639,117 |
Commitments and Contingencies | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock – $0.50 par, 75,000,000 shares authorized, 47,684,516 and 48,408,734 shares outstanding at September 30, 2013 and December 31, 2012, respectively | 23,842 | 24,204 |
Additional paid-in capital | 477,590 | 480,595 |
Retained earnings | 490,807 | 424,317 |
Accumulated other comprehensive income | ' | 4,418 |
Total stockholders' equity | 992,239 | 933,534 |
Total liabilities and stockholders' equity | $2,277,389 | $2,572,651 |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common stock, par value | $0.50 | $0.50 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares outstanding | 47,684,516 | 48,408,734 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Oil and gas sales | $111,590 | $97,141 | $314,430 | $291,242 |
Operating expenses: | ' | ' | ' | ' |
Production taxes | 4,168 | 3,098 | 10,172 | 9,206 |
Gathering and transportation | 4,478 | 6,033 | 13,034 | 20,854 |
Lease operating | 12,955 | 12,962 | 39,123 | 38,613 |
Exploration | 2,995 | 1,407 | 15,342 | 2,797 |
Depreciation, depletion and amortization | 85,762 | 91,536 | 255,973 | 254,522 |
General and administrative, net | 8,153 | 8,142 | 25,996 | 25,973 |
(Gain) loss on sale of oil and gas properties | 2,165 | 2,794 | 2,084 | -24,271 |
Impairment of oil and gas properties | ' | ' | 652 | 5,350 |
Total operating expenses | 120,676 | 125,972 | 362,376 | 333,044 |
Operating loss | -9,086 | -28,831 | -47,946 | -41,802 |
Other income (expenses): | ' | ' | ' | ' |
Gain on sale of marketable securities | ' | ' | 7,877 | 26,621 |
Realized gain (loss) from derivatives | -3,560 | 3,293 | 1,641 | 4,658 |
Unrealized gain (loss) from derivatives | -3,835 | -11,112 | -11,962 | 13,498 |
Interest and other income | 423 | 153 | 864 | 675 |
Interest expense | -20,530 | -15,527 | -57,348 | -41,181 |
Total other income (expenses) | -27,502 | -23,193 | -58,928 | 4,271 |
Loss before income taxes | -36,588 | -52,024 | -106,874 | -37,531 |
Benefit from income taxes | 12,554 | 7,812 | 36,792 | 11,446 |
Loss from continuing operations | -24,034 | -44,212 | -70,082 | -26,085 |
Income from discontinued operations, net of income taxes | ' | 13,763 | 148,609 | 4,176 |
Net income (loss) | ($24,034) | ($30,449) | $78,527 | ($21,909) |
Net income (loss) per share: | ' | ' | ' | ' |
Loss from continuing operations, Basic | ($0.52) | ($0.95) | ($1.45) | ($0.56) |
Income from discontinued operations, Basic | ' | $0.29 | $3.08 | $0.09 |
Net income (loss), Basic | ($0.52) | ($0.66) | $1.63 | ($0.47) |
Loss from continuing operations, Diluted | ($0.52) | ($0.95) | ($1.45) | ($0.56) |
Income from discontinued operations, Diluted | ' | $0.29 | $3.08 | $0.09 |
Net income (loss), Diluted | ($0.52) | ($0.66) | $1.63 | ($0.47) |
Dividends per common share | $0.13 | ' | $0.25 | ' |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 46,570 | 46,443 | 46,684 | 46,414 |
Diluted | 46,570 | 46,443 | 46,684 | 46,414 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income (loss) | ($24,034) | ($30,449) | $78,527 | ($21,909) |
Unrealized gain from derivatives, net of benefit from income taxes of $161 | ' | ' | ' | -298 |
Net change in unrealized gains and losses on marketable securities, net of benefit from income taxes of $46, $2,380 and $7,521 | ' | -86 | -4,418 | -13,966 |
Other comprehensive loss | ' | -86 | -4,418 | -14,264 |
Comprehensive income (loss) | ($24,034) | ($30,535) | $74,109 | ($36,173) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Unrealized gain from derivatives, income tax benefit | ' | ' | $161 |
Net change in unrealized gains and losses on marketable securities, income tax benefit | $46 | $2,380 | $7,521 |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2012 | $933,534 | $24,204 | $480,595 | $424,317 | $4,418 |
Beginning Balance, Shares at Dec. 31, 2012 | ' | 48,409,000 | ' | ' | ' |
Stock-based compensation | 9,561 | 9 | 9,552 | ' | ' |
Stock-based compensation, Shares | ' | 18,000 | ' | ' | ' |
Tax withholdings related to stock grants | -1,680 | -55 | -1,625 | ' | ' |
Tax withholdings related to stock grants, Shares | ' | -111,000 | ' | ' | ' |
Excess income taxes related to stock-based compensation | -2,016 | ' | -2,016 | ' | ' |
Repurchases of common stock | -9,232 | -316 | -8,916 | ' | ' |
Repurchases of common stock, Shares | -631,096 | -631,000 | ' | ' | ' |
Net income | 78,527 | ' | ' | 78,527 | ' |
Dividends paid | -12,037 | ' | ' | -12,037 | ' |
Other comprehensive loss | -4,418 | ' | ' | ' | -4,418 |
Ending Balance at Sep. 30, 2013 | $992,239 | $23,842 | $477,590 | $490,807 | ' |
Ending Balance, Shares at Sep. 30, 2013 | ' | 47,685,000 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | $78,527 | ($21,909) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Income from discontinued operations | -148,609 | -4,176 |
Gain on sale of assets | -5,793 | -50,892 |
Deferred income taxes | -36,792 | -11,235 |
Dry hole costs and lease impairments | 14,903 | 2,685 |
Impairment of oil and gas properties | 652 | 5,350 |
Depreciation, depletion and amortization | 255,973 | 254,522 |
Unrealized loss (gain) from derivatives | 11,962 | -13,498 |
Debt issuance cost and discount amortization | 4,802 | 3,689 |
Stock-based compensation | 9,561 | 10,189 |
Excess income taxes related to stock-based compensation | 2,016 | 1,681 |
Decrease (increase) in accounts receivable | -48,185 | 12,426 |
Decrease (increase) in other current assets | 2,136 | -1,713 |
Increase in accounts payable and accrued liabilities | 72,139 | 7,078 |
Net cash provided by continuing operations | 213,292 | 194,197 |
Net cash provided by (used for) discontinued operations | -7,730 | 31,501 |
Net cash provided by operating activities | 205,562 | 225,698 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -250,353 | -318,742 |
Proceeds from asset sales | 13,215 | 179,641 |
Investing activities of continuing operations | -237,138 | -139,101 |
Cash flows from investing activities of discontinued operations: | ' | ' |
Capital expenditures | -101,037 | -149,768 |
Proceeds from sale of oil and gas properties | 823,701 | 24,750 |
Net cash provided by (used for) investing activities of discontinued operations | 722,664 | -125,018 |
Net cash provided by (used for) investing activities | 485,526 | -264,119 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Borrowings | 95,000 | 430,912 |
Principal payments on debt | -537,225 | -390,000 |
Debt issuance costs | -16 | -6,701 |
Tax withholding related to stock grants | -1,680 | ' |
Excess income taxes from stock-based compensation | -2,016 | -1,681 |
Repurchases of common stock | -9,232 | ' |
Dividends paid | -12,037 | ' |
Net cash provided by (used for) financing activities | -467,206 | 32,530 |
Net increase (decrease) in cash and cash equivalents | 223,882 | -5,891 |
Cash and cash equivalents, beginning of period | 4,471 | 8,460 |
Cash and cash equivalents, end of period | $228,353 | $2,569 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||||||||||||||||
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – | ||||||||||||||||||||||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||||||||||||||||||||
In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position of Comstock Resources, Inc. and subsidiaries ("Comstock" or the "Company") as of September 30, 2013 and the related results of operations and cash flows for the three months and nine months ended September 30, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||
The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to those rules and regulations, although Comstock believes that the disclosures made are adequate to make the information presented not misleading. These unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in Comstock's Annual Report on Form 10-K for the year ended December 31, 2012. | ||||||||||||||||||||||||||||||||||||||
The results of operations for the three months and nine months ended September 30, 2013 are not necessarily an indication of the results expected for the full year. | ||||||||||||||||||||||||||||||||||||||
These unaudited consolidated financial statements include the accounts of Comstock and its wholly owned and controlled subsidiaries. The consolidated financial statements for the nine months ended September 30, 2012 also include the accounts of a variable interest entity where the Company was the primary beneficiary of the arrangements. Intercompany balances and transactions have been eliminated in consolidation. In connection with a reverse like-kind exchange in accordance with Section 1031 of the Internal Revenue Code, the Company assigned the rights to acquire ownership of certain oil and gas properties acquired in 2011 to a variable interest entity formed by an exchange accommodation titleholder. The Company operated these properties pursuant to lease and management agreements with that entity, and had a call option which allowed the Company to terminate the exchange transaction at any time up and until the expiration date of the exchange. Because the Company was the primary beneficiary of these arrangements, all revenues and expenses incurred related to the properties are included in the Company's consolidated results of operations for the nine months ended September 30, 2012. These agreements terminated upon the transfer of the acquired properties from the exchange accommodation titleholder to Comstock in May 2012, when the exchange was finalized. | ||||||||||||||||||||||||||||||||||||||
Reclassifications | ||||||||||||||||||||||||||||||||||||||
Certain reclassifications have been made to prior period's financial statements, consisting primarily of reclassifications to reflect the Company's West Texas oil and gas properties as discontinued operations. | ||||||||||||||||||||||||||||||||||||||
Marketable Securities | ||||||||||||||||||||||||||||||||||||||
As of December 31, 2012, the Company held 600,000 shares of Stone Energy Corporation common stock which was reflected in the consolidated balance sheet as marketable securities. During the nine months ended September 30, 2013, these shares with a cost basis of $5.5 million were sold for proceeds of $13.4 million. Comstock realized a gain before income taxes of $7.9 million on the sale which is included in other income in the consolidated statements of operations. During the nine months ended September 30, 2012, the Company sold 1,206,000 shares of Stone Energy Corporation common stock for total proceeds of $37.7 million and realized a gain before income taxes of $26.6 million for the nine months ended September 30, 2012. The Company utilized the specific identification method to determine the cost of the securities that were sold. | ||||||||||||||||||||||||||||||||||||||
Property and Equipment | ||||||||||||||||||||||||||||||||||||||
The Company follows the successful efforts method of accounting for its oil and gas properties. Costs incurred to acquire oil and gas leasehold are capitalized. The Company also assesses the need for an impairment of the costs capitalized for its oil and gas properties on a property or cost center basis. Impairment charges related to the Company's oil and gas properties of $0.7 million and $5.4 million were recognized during the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
Unproved oil and gas properties are periodically assessed and any impairment in value is charged to exploration expense. The costs of unproved properties which are determined to be productive are transferred to oil and gas properties and amortized on an equivalent unit-of-production basis. The Company's assessments of its unevaluated acreage have indicated that certain leases were expected to expire prior to the Company conducting drilling operations. Accordingly, impairment charges were recognized in exploration expense of $3.0 million and $1.4 million for the three months ended September 30, 2013 and 2012, respectively, and $14.9 million and $2.7 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
West Texas Divestiture | ||||||||||||||||||||||||||||||||||||||
On May 14, 2013, the Company completed the sale of its oil and gas properties located in Reeves and Gaines counties in West Texas to third parties for $823.7 million and realized a gain of $230.6 million which is reflected as a component of income from discontinued operations in the nine months ended September 30, 2013. | ||||||||||||||||||||||||||||||||||||||
Assets and liabilities of discontinued operations as of December 31, 2012 were as follows: | ||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Accounts Receivable | $ | 5,924 | ||||||||||||||||||||||||||||||||||||
Other Current Assets | 1,644 | |||||||||||||||||||||||||||||||||||||
Total Current Assets | 7,568 | |||||||||||||||||||||||||||||||||||||
Unproved Oil and Gas Properties | 150,801 | |||||||||||||||||||||||||||||||||||||
Proved Oil and Gas Properties: | ||||||||||||||||||||||||||||||||||||||
Leasehold Costs | 225,546 | |||||||||||||||||||||||||||||||||||||
Wells and related equipment and facilities | 180,475 | |||||||||||||||||||||||||||||||||||||
Other | 673 | |||||||||||||||||||||||||||||||||||||
Accumulated depreciation, depletion and amortization | (46,129 | ) | ||||||||||||||||||||||||||||||||||||
Net Property and Equipment | 511,366 | |||||||||||||||||||||||||||||||||||||
Total Assets of Discontinued Operations | $ | 518,934 | ||||||||||||||||||||||||||||||||||||
Accounts Payable | $ | 21,302 | ||||||||||||||||||||||||||||||||||||
Accrued Liabilities | 10,371 | |||||||||||||||||||||||||||||||||||||
Reserve for Future Abandonment Costs | 1,607 | |||||||||||||||||||||||||||||||||||||
Liabilities of Discontinued Operations | $ | 33,280 | ||||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations was comprised of the following: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Oil and gas sales | $ | — | $ | 15,754 | $ | 25,125 | $ | 34,078 | ||||||||||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||||||||||||
Production taxes | — | 758 | 1,120 | 1,667 | ||||||||||||||||||||||||||||||||||
Gathering and transportation | — | 349 | 501 | 758 | ||||||||||||||||||||||||||||||||||
Lease operating | — | 2,541 | 9,853 | 5,587 | ||||||||||||||||||||||||||||||||||
Depletion, depreciation and amortization | — | 7,694 | 8,649 | 13,888 | ||||||||||||||||||||||||||||||||||
Interest expense(1) | — | 2,008 | 6,346 | 4,120 | ||||||||||||||||||||||||||||||||||
Total costs and expenses | — | 13,350 | 26,469 | 26,020 | ||||||||||||||||||||||||||||||||||
Gain on sale of discontinued operations | — | — | 230,637 | — | ||||||||||||||||||||||||||||||||||
Income from discontinued operations before income taxes | — | 2,404 | 229,293 | 8,058 | ||||||||||||||||||||||||||||||||||
Benefit from (provision for) income taxes | — | 11,359 | (80,684 | ) | (3,882 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations | $ | — | $ | 13,763 | $ | 148,609 | $ | 4,176 | ||||||||||||||||||||||||||||||
Net Production Data: | ||||||||||||||||||||||||||||||||||||||
Oil (Mbbls) | — | 172 | 270 | 369 | ||||||||||||||||||||||||||||||||||
Natural Gas (Mmcf) | — | 202 | 410 | 474 | ||||||||||||||||||||||||||||||||||
Natural Gas Equivalent (Mmcfe) | — | 1,235 | 2,031 | 2,686 | ||||||||||||||||||||||||||||||||||
(1) Interest expense was allocated to discontinued operations based on the ratio of the net assets of discontinued operations to our consolidated net assets plus long-term debt. Interest expense is net of capitalized interest of $2,629 for the three months ended September 30, 2012 and $2,010 and $7,022 for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | ||||||||||||||||||||||||||||||||||||||
Accrued liabilities at September 30, 2013 and December 31, 2012 consist of the following: | ||||||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Accrued drilling costs | $ | 12,868 | $ | 4,726 | ||||||||||||||||||||||||||||||||||
Accrued interest | 31,415 | 12,351 | ||||||||||||||||||||||||||||||||||||
Accrued transportation costs payable | 2,805 | 3,553 | ||||||||||||||||||||||||||||||||||||
Accrued ad valorem taxes payable | 4,500 | — | ||||||||||||||||||||||||||||||||||||
Accrued oil and gas property acquisition costs | — | 2,413 | ||||||||||||||||||||||||||||||||||||
Advance from joint venture partner | — | 7,286 | ||||||||||||||||||||||||||||||||||||
Other accrued liabilities | 9,098 | 6,672 | ||||||||||||||||||||||||||||||||||||
$ | 60,686 | $ | 37,001 | |||||||||||||||||||||||||||||||||||
Reserve for Future Abandonment Costs | ||||||||||||||||||||||||||||||||||||||
Comstock's asset retirement obligations relate to future plugging and abandonment expenses on its oil and gas properties and related facilities disposal. The following table summarizes the changes in Comstock's total estimated liability during the nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Future abandonment costs – beginning of period | $ | 16,387 | $ | 13,997 | ||||||||||||||||||||||||||||||||||
Accretion expense – continuing operations | 716 | 504 | ||||||||||||||||||||||||||||||||||||
Accretion expense – discontinued operations | — | 33 | ||||||||||||||||||||||||||||||||||||
New wells placed on production – continuing operations | 599 | 583 | ||||||||||||||||||||||||||||||||||||
New wells placed on production – discontinued operations | — | 645 | ||||||||||||||||||||||||||||||||||||
Liabilities settled and assets disposed of – continuing operations | (555 | ) | (1,194 | ) | ||||||||||||||||||||||||||||||||||
Liabilities settled and assets disposed of – discontinued operations | — | (23 | ) | |||||||||||||||||||||||||||||||||||
Liabilities reclassified to discontinued operations | — | (1,395 | ) | |||||||||||||||||||||||||||||||||||
Future abandonment costs – end of period | $ | 17,147 | $ | 13,150 | ||||||||||||||||||||||||||||||||||
Derivative Financial Instruments and Hedging Activities | ||||||||||||||||||||||||||||||||||||||
Comstock periodically uses swaps, floors and collars to hedge oil and natural gas prices and interest rates. Swaps are settled monthly based on differences between the prices specified in the instruments and the settlement prices of futures contracts. Generally, when the applicable settlement price is less than the price specified in the contract, Comstock receives a settlement from the counterparty based on the difference multiplied by the volume or amounts hedged. Similarly, when the applicable settlement price exceeds the price specified in the contract, Comstock pays the counterparty based on the difference. Comstock generally receives a settlement from the counterparty for floors when the applicable settlement price is less than the price specified in the contract, which is based on the difference multiplied by the volumes hedged. For collars, generally Comstock receives a settlement from the counterparty when the settlement price is below the floor and pays a settlement to the counterparty when the settlement price exceeds the cap. No settlement occurs when the settlement price falls between the floor and cap. | ||||||||||||||||||||||||||||||||||||||
As of September 30, 2013, the Company had the following outstanding oil price derivatives: | ||||||||||||||||||||||||||||||||||||||
Weighted-Average | Volume (barrels) | Contract Period | ||||||||||||||||||||||||||||||||||||
Contract Price | ||||||||||||||||||||||||||||||||||||||
Crude Oil Price Swap Agreements | $98.67 per Barrel | 540,000 | October 2013 – | |||||||||||||||||||||||||||||||||||
Dec-13 | ||||||||||||||||||||||||||||||||||||||
Crude Oil Price Swap Agreements | $96.31 per Barrel | 1,985,000 | January 2014 – | |||||||||||||||||||||||||||||||||||
Dec-14 | ||||||||||||||||||||||||||||||||||||||
All of the Company's derivative financial instruments are used for risk management purposes and by policy none are held for trading or speculative purposes. Comstock minimizes credit risk to counterparties of its derivative financial instruments through formal credit policies, monitoring procedures, and diversification. All of Comstock’s derivative financial instruments are with parties that are lenders under its bank credit facility. The Company is not required to provide any credit support to its counterparties other than cross collateralization with the assets securing its bank credit facility. None of the Company's derivative financial instruments involve payment or receipt of premiums. | ||||||||||||||||||||||||||||||||||||||
None of the derivative contracts have been designated as cash flow hedges. The Company recognizes the realized gains and losses and unrealized gains and losses due to the change in the fair value of its derivative financial instruments as separate components of other income (expenses). The Company had realized losses on its oil price swaps of $3.6 million and realized gains of $3.3 million during the three months ended September 30, 2013 and 2012, respectively, and realized gains of $1.6 million and $4.7 million during the nine months ended September 30, 2013 and 2012, respectively. The estimated fair value of the Company's derivative financial instruments, which equals their carrying value, was a net liability of $0.3 million as of September 30, 2013, comprised of a long term asset of $1.8 million and a current liability of $2.1 million, based on estimated settlement dates. The estimated fair value of the Company's derivative financial instruments at December 31, 2012 was$11.7 million which is reflected as a current asset. The Company had unrealized losses of $3.8 million and $11.1 million during the three months ended September 30, 2013 and 2012, respectively, due to the change in the fair value. The Company had unrealized losses of $12.0 million and unrealized gains of $13.5 million during the nine months ended September 30, 2013 and 2012, respectively, due to the change in the fair value. | ||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||||||||||||||||||
Comstock accounts for employee stock-based compensation under the fair value method. Compensation cost is measured at the grant date based on the fair value of the award and is recognized over the award vesting period. During the three months ended September 30, 2013 and 2012, the Company recognized $3.1 million and $3.3 million, respectively, of stock-based compensation expense within general and administrative expenses related to awards of restricted stock and performance stock units to its employees and directors. For the nine months ended September 30, 2013 and 2012, the Company recognized $9.6 million and $10.2 million, respectively, of stock-based compensation expense within general and administrative expenses. | ||||||||||||||||||||||||||||||||||||||
As of September 30, 2013, Comstock had 1,519,889 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $24.02 per share. Total unrecognized compensation cost related to unvested restricted stock grants of $12.0 million as of September 30, 2013 is expected to be recognized over a period of 1.9 years. As of September 30, 2013, Comstock had 249,302 performance stock units outstanding at a weighted average grant date fair value of $21.19 per unit. Total unrecognized compensation cost related to these grants of $2.9 million as of September 30, 2013 is expected to be recognized over a period of 1.6 years. | ||||||||||||||||||||||||||||||||||||||
As of September 30, 2013, Comstock had outstanding options to purchase 115,150 shares of common stock at a weighted average exercise price of $32.90 per share. All of the stock options were exercisable and there were no unrecognized costs related to the stock options as of September 30, 2013. No stock options were exercised during the nine months ended September 30, 2013 or 2012. | ||||||||||||||||||||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||||||||||||||||||
The following is an analysis of consolidated income tax benefit from continuing operations: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Current benefit | $ | — | $ | 12 | $ | — | $ | 211 | ||||||||||||||||||||||||||||||
Deferred benefit | 12,554 | 7,800 | 36,792 | 11,235 | ||||||||||||||||||||||||||||||||||
Benefit from income taxes | $ | 12,554 | $ | 7,812 | $ | 36,792 | $ | 11,446 | ||||||||||||||||||||||||||||||
Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates. The difference between the Company's effective tax rate and the 35% federal statutory rate is mainly caused by non-deductible stock compensation and state taxes. The impact of these items varies based upon the Company's projected full year income or loss and the jurisdictions that are expected to generate the projected income and/or losses. | ||||||||||||||||||||||||||||||||||||||
The difference between the Company's customary rate of 35% and the effective tax rate on income before income taxes from continuing operations is due to the following: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Tax at statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||||||||||||||||||||||||
Tax effect of: | ||||||||||||||||||||||||||||||||||||||
Nondeductible stock-based compensation | (0.6 | ) | (18.0 | ) | (1.1 | ) | (5.1 | ) | ||||||||||||||||||||||||||||||
State income taxes, net of federal benefit | (0.3 | ) | (0.6 | ) | 0.6 | 1.0 | ||||||||||||||||||||||||||||||||
Other | 0.3 | (1.3 | ) | (0.1 | ) | (0.4 | ) | |||||||||||||||||||||||||||||||
Effective tax rate | 34.4 | % | 15.1 | % | 34.4 | % | 30.5 | % | ||||||||||||||||||||||||||||||
The Company's federal income tax returns for the years subsequent to December 31, 2007 remain subject to examination. The Company's income tax returns in major state income tax jurisdictions remain subject to examination from various periods subsequent to December 31, 2007. State tax returns in two state jurisdictions are currently under review. The Company has evaluated the preliminary findings in these jurisdictions and believes it is more likely than not that the ultimate resolution of these matters will not have a material effect on its financial statements. The Company currently believes that all other significant filing positions are highly certain and that all of its other significant income tax positions and deductions would be sustained under audit or the final resolution would not have a material effect on the consolidated financial statements. Therefore the Company has not established any significant reserves for uncertain tax positions. | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||
The Company holds or has held certain items that are required to be measured at fair value. These include cash equivalents held in bank accounts and derivative financial instruments in the form of oil price swap agreements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements: | ||||||||||||||||||||||||||||||||||||||
Level 1 – Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. | ||||||||||||||||||||||||||||||||||||||
Level 2 – Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. | ||||||||||||||||||||||||||||||||||||||
Level 3 – Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. | ||||||||||||||||||||||||||||||||||||||
The Company's cash equivalents and restricted cash valuations are a Level 1 measurement. The Company's oil price swap agreements are not traded on a public exchange, and their value is determined utilizing a discounted cash flow model based on inputs that are readily available in public markets and, accordingly, the valuation of these swap agreements is categorized as a Level 2 measurement. | ||||||||||||||||||||||||||||||||||||||
The following table summarizes financial assets and liabilities accounted for at fair value as of September 30, 2013: | ||||||||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | ||||||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||||||
Measured at | ||||||||||||||||||||||||||||||||||||||
Fair Value at | ||||||||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Assets measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
Cash held in bank accounts | $ | 228,353 | $ | 228,353 | $ | — | ||||||||||||||||||||||||||||||||
Derivative financial instruments | 1,820 | — | 1,820 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 230,173 | $ | 228,353 | $ | 1,820 | ||||||||||||||||||||||||||||||||
Liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
Derivative financial instruments | $ | 2,131 | $ | — | $ | 2,131 | ||||||||||||||||||||||||||||||||
The following table summarizes the changes in the fair values of derivative financial instruments, which are Level 2 assets (liabilities), for the three months and nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,524 | $ | 11,651 | ||||||||||||||||||||||||||||||||||
Purchases and settlements (net) | 3,560 | (1,641 | ) | |||||||||||||||||||||||||||||||||||
Realized gains (losses) included in other income (expenses) | (3,560 | ) | 1,641 | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) included in other income (expenses) | (3,835 | ) | (11,962 | ) | ||||||||||||||||||||||||||||||||||
Balance at end of period | $ | (311 | ) | $ | (311 | ) | ||||||||||||||||||||||||||||||||
The following table presents the carrying amounts and estimated fair value of the Company's other financial instruments: | ||||||||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Long-term debt, including current portion | $ | 883,897 | $ | 994,186 | $ | 1,324,383 | $ | 1,382,000 | ||||||||||||||||||||||||||||||
The fair market value of the Company's fixed rate debt was based on the market prices as of September 30, 2013 and December 31, 2012, a Level 1 measurement. The fair value of the floating rate debt approximated its carrying value, a Level 2 measurement. | ||||||||||||||||||||||||||||||||||||||
Earnings Per Share | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share is determined without the effect of any outstanding potentially dilutive stock options and diluted earnings per share is determined with the effect of outstanding stock options that are potentially dilutive. Unvested share-based payment awards containing nonforfeitable rights to dividends are considered to be participatory securities and are included in the computation of basic and diluted earnings per share pursuant to the two-class method. Performance share units ("PSUs") represent the right to receive a number of shares of the Company's common stock that may range from zero to up to three times the number of PSUs granted on the award date based on the achievement of certain performance measures during a performance period. The number of potentially dilutive shares related to PSUs is based on the number of shares, if any, which would be issuable at the end of the respective period, assuming that date was the end of the contingency period. The treasury stock method is used to measure the dilutive effect of PSUs. | ||||||||||||||||||||||||||||||||||||||
Basic and diluted earnings per share for the three months and nine months ended September 30, 2013 and 2012 were determined as follows: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Income | Shares | Per | Income | Shares | Per | |||||||||||||||||||||||||||||||||
(Loss) | Share | (Loss) | Share | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||
Net Loss From Continuing Operations | $ | (24,034 | ) | $ | (44,212 | ) | ||||||||||||||||||||||||||||||||
Loss Allocable to Unvested Stock Grants | — | — | ||||||||||||||||||||||||||||||||||||
Basic Net Loss From Continuing Operations | $ | (24,034 | ) | 46,570 | $ | (0.52 | ) | $ | (44,212 | ) | 46,443 | $ | (0.95 | ) | ||||||||||||||||||||||||
Attributable to Common Stock | ||||||||||||||||||||||||||||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||||||||||||||||||||
Stock Options | — | — | — | — | ||||||||||||||||||||||||||||||||||
Performance Stock Units | — | — | — | — | ||||||||||||||||||||||||||||||||||
Diluted Net Loss From Continuing Operations Attributable to Common Stock | $ | (24,034 | ) | 46,570 | $ | (0.52 | ) | $ | (44,212 | ) | 46,443 | $ | (0.95 | ) | ||||||||||||||||||||||||
Net Income From Discontinued Operations | $ | 13,763 | ||||||||||||||||||||||||||||||||||||
Income Allocable to Unvested Stock Grants | — | |||||||||||||||||||||||||||||||||||||
Basic Net Income From Discontinued Operations Attributable to Common Stock | $ | 13,763 | 46,443 | $ | 0.29 | |||||||||||||||||||||||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||||||||||||||||||||
Stock Options | — | — | ||||||||||||||||||||||||||||||||||||
Performance Stock Units | — | — | ||||||||||||||||||||||||||||||||||||
Diluted Net Income From Discontinued Operations Attributable to Common Stock | $ | 13,763 | 46,443 | $ | 0.29 | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Income | Shares | Per | Income | Shares | Per | |||||||||||||||||||||||||||||||||
(Loss) | Share | (Loss) | Share | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||
Net Loss From Continuing Operations | $ | (70,082 | ) | $ | (26,085 | ) | ||||||||||||||||||||||||||||||||
Loss Allocable to Unvested Stock Grants | 2,254 | — | ||||||||||||||||||||||||||||||||||||
Basic Net Loss From Continuing Operations | $ | (67,828 | ) | 46,684 | $ | (1.45 | ) | $ | (26,085 | ) | 46,414 | $ | (0.56 | ) | ||||||||||||||||||||||||
Attributable to Common Stock | ||||||||||||||||||||||||||||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||||||||||||||||||||
Stock Options | — | — | — | — | ||||||||||||||||||||||||||||||||||
Performance Stock Units | — | — | — | — | ||||||||||||||||||||||||||||||||||
Diluted Net Loss From Continuing Operations Attributable to Common Stock | $ | (67,828 | ) | 46,684 | $ | (1.45 | ) | $ | (26,085 | ) | 46,414 | $ | (0.56 | ) | ||||||||||||||||||||||||
Net Income From Discontinued Operations | $ | 148,609 | $ | 4,176 | ||||||||||||||||||||||||||||||||||
Income Allocable to Unvested Stock Grants | (4,782 | ) | — | |||||||||||||||||||||||||||||||||||
Basic Net Income From Discontinued Operations Attributable to Common Stock | $ | 143,827 | 46,684 | $ | 3.08 | $ | 4,176 | 46,414 | $ | 0.09 | ||||||||||||||||||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||||||||||||||||||||
Stock Options | — | — | — | — | ||||||||||||||||||||||||||||||||||
Performance Stock Units | — | — | — | — | ||||||||||||||||||||||||||||||||||
Diluted Net Income From Discontinued Operations Attributable to Common Stock | $ | 143,827 | 46,684 | $ | 3.08 | $ | 4,176 | 46,414 | $ | 0.09 | ||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, 1,519,889 and 1,960,835 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a nonforfeitable right to participate in any dividends that might be declared and have the right to vote. | ||||||||||||||||||||||||||||||||||||||
Weighted average shares of unvested restricted stock were as follows: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Unvested restricted stock | 1,520 | 1,717 | 1,552 | 1,728 | ||||||||||||||||||||||||||||||||||
Options to purchase common stock and PSUs that were outstanding and that were excluded as anti-dilutive from the determination of diluted earnings per share are as follows: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands except per share/unit data) | ||||||||||||||||||||||||||||||||||||||
Weighted average anti-dilutive stock options | 115 | 157 | 135 | 172 | ||||||||||||||||||||||||||||||||||
Weighted average exercise price per share | $ | 32.90 | $ | 38.36 | $ | 32.90 | $ | 37.64 | ||||||||||||||||||||||||||||||
Weighted average performance share units | 91 | — | 56 | — | ||||||||||||||||||||||||||||||||||
Weighted average grant date fair value per unit | $ | 21.19 | $ | — | $ | 21.15 | $ | — | ||||||||||||||||||||||||||||||
For the three months and nine months ended September 30, 2013 and 2012, the excluded options that were anti-dilutive were at exercise prices in excess of the average stock price for each of the periods presented. | ||||||||||||||||||||||||||||||||||||||
Supplementary Information With Respect to the Consolidated Statements of Cash Flows | ||||||||||||||||||||||||||||||||||||||
For the purpose of the consolidated statements of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At September 30, 2013 and December 31, 2012 the Company's cash investments consisted of cash held in bank accounts. | ||||||||||||||||||||||||||||||||||||||
The following is a summary of cash payments made for interest and income taxes: | ||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Cash Payments: | ||||||||||||||||||||||||||||||||||||||
Interest payments | $ | 44,228 | $ | 36,749 | ||||||||||||||||||||||||||||||||||
Income tax payments (refunds) | $ | 768 | $ | (58 | ) | |||||||||||||||||||||||||||||||||
The Company capitalizes interest on its unevaluated oil and gas property costs during periods when it is conducting exploration activity on this acreage. The Company capitalized interest of $0.7 million and $5.9 million for the three months ended September 30, 2013 and 2012, respectively, and $4.4 million and $16.5 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) consists of the following: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (24,034 | ) | $ | (30,449 | ) | $ | 78,527 | $ | (21,909 | ) | |||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||
Realized gains on marketable securities reclassified to gain on sale of marketable securities, net of a benefit from income taxes of $2,757 in 2013 and $9,318 in 2012 | — | — | (5,120 | ) | (17,303 | ) | ||||||||||||||||||||||||||||||||
Unrealized gain from derivatives, net of a benefit from income taxes of $161 in 2012 | — | — | — | (298 | ) | |||||||||||||||||||||||||||||||||
Unrealized gains (losses) on marketable securities, net of provision for (benefit from) income taxes of $- and $377 in 2013 and $(46) and $1,797 in 2012 | — | (86 | ) | 702 | 3,337 | |||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | $ | (24,034 | ) | $ | (30,535 | ) | $ | 74,109 | $ | (36,173 | ) | |||||||||||||||||||||||||||
The following table provides a summary of the amounts included in accumulated other comprehensive income, net of income taxes, for the nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||||||||
Nine Months | ||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||||
Marketable | ||||||||||||||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Balance as of beginning of period | $ | 4,418 | ||||||||||||||||||||||||||||||||||||
Changes in value | 702 | |||||||||||||||||||||||||||||||||||||
Reclassification to earnings | (5,120 | ) | ||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | — | ||||||||||||||||||||||||||||||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS EQUITY | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders Equity | ' |
(2) STOCKHOLDERS' EQUITY – | |
On each of May 15, 2013 and August 22, 2013, the Board of Directors declared a dividend of 12.5¢ per share on the Company's common stock to stockholders of record at the close of business on May 31, 2013 and September 6, 2013. Dividends in the aggregate amount of $12.0 million have been paid during 2013. The Board of Directors also approved an open market share repurchase plan which permits the Company to repurchase up to $100.0 million of its common stock on the open market. The Company made various open market purchases of 631,096 shares at an aggregate cost of $9.2 million under this plan during the three months and nine months ended September 30, 2013. |
LONGTERM_DEBT
LONG-TERM DEBT | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
LONG-TERM DEBT | ' | ||||
(3) LONG-TERM DEBT – | |||||
At September 30, 2013, long-term debt was comprised of: | |||||
(In thousands) | |||||
Bank credit facility | $ | — | |||
8 3/8% Senior Notes due 2017 | 295,637 | ||||
7 3/4% Senior Notes due 2019 | 300,000 | ||||
9 1/2% Senior Notes due 2020 | 288,260 | ||||
883,897 | |||||
Less Current Portion of 8 3/8% Senior Notes | (195,637 | ) | |||
$ | 688,260 | ||||
Comstock has a $850.0 million bank credit facility with Bank of Montreal, as the administrative agent. The outstanding balance under the bank credit facility was repaid in full with a portion of the proceeds from the West Texas divestiture. The credit facility is a five year revolving credit commitment that matures on November 30, 2015. Indebtedness under the credit facility is secured by substantially all of Comstock's assets and is guaranteed by all of its wholly owned subsidiaries. The credit facility is subject to borrowing base availability, which is redetermined semiannually based on the banks' estimates of the Company's future net cash flows of oil and gas properties. The borrowing base may be affected by the performance of Comstock's properties and changes in oil and natural gas prices. The determination of the borrowing base is at the sole discretion of the administrative agent and the bank group. As of September 30, 2013, the borrowing base was $500.0 million, all of which was available. Borrowings under the credit facility bear interest, based on the utilization of the borrowing base, at Comstock's option at either (1) LIBOR plus 1.75% to 2.75% or (2) the base rate (which is the higher of the administrative agent's prime rate, the federal funds rate plus 0.5% or 30 day LIBOR plus 1.0%) plus 0.75% to 1.75%. A commitment fee of 0.5% is payable annually on the unused borrowing base. The credit facility contains covenants that, among other things, limit the payment of cash dividends and repurchases of shares and the amount of consolidated debt that Comstock may incur and the ability to make certain loans and investments. The only financial covenants are the maintenance of a ratio of current assets, including availability under the bank credit facility, to current liabilities and maintenance of a leverage ratio. The Company was in compliance with these covenants as of September 30, 2013. | |||||
At September 30, 2013 Comstock had $297.8 million in principal amount of 83/8% senior notes outstanding which mature on October 15, 2017 (the "2017 Notes"). Interest on the 2017 Notes is payable semiannually on each April 15 and October 15. In June 2013, the Company repurchased $2.2 million in principal amount of the 2017 Notes at 103.3% of the par value. On September 13, 2013 the Company called all of the remaining 2017 Notes for redemption at the call price of 104.2% of par value and on October 15, 2013, Comstock redeemed the 2017 Senior Notes. The redemption amount of $310.2 million was funded with cash on hand of $210.2 million and borrowings under the Company's bank credit facility. As a result of this redemption, in the fourth quarter of 2013 the Company will realize a loss on early extinguishment of debt, before income taxes, of approximately $17.9 million comprised of the premium paid for the redemption, the costs incurred related to the redemption and the write-off of unamortized debt issuance costs, including original issuance discount. The Company has accordingly reclassified $195.6 million of the 2017 Notes in the accompanying financial statements as short term debt as a result of the early redemption. | |||||
In addition to the 2017 Notes, the Company has $300.0 million in principal amount of 73/4% senior notes (the "2019 Notes") which mature on April 1, 2019; interest is payable semiannually on each April 1 and October 1, and $300.0 million in principal amount of 91/2% senior notes (the "2020 Notes") that were issued in June 2012 and mature on June 15, 2020; interest is payable semi-annually on each June 15 and December 15. All of the notes are unsecured obligations of Comstock and are guaranteed by all of Comstock's material subsidiaries. Such subsidiary guarantors are 100% owned and all of the guarantees are full and unconditional and joint and several obligations. As of September 30, 2013, Comstock had no material assets or operations which were independent of its subsidiaries. There are no restrictions on the ability of Comstock to obtain funds from its subsidiaries through dividends or loans. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies | ' |
(4) Commitments and Contingencies – | |
From time to time, Comstock is involved in certain litigation that arises in the normal course of its operations. The Company records a loss contingency for these matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company does not believe the resolution of these matters will have a material effect on the Company's financial position or results of operations. During the three months ended September 30, 2013, the Company incurred approximately $2.0 million for a settlement with a joint interest property owner which is included in (gain) loss on disposal of properties. | |
In connection with its exploration and development activities, the Company contracts for drilling rigs under terms of up to three years. As of September 30, 2013, the Company had commitments for contracted drilling services of $50.3 million. | |
The Company has entered into natural gas transportation and treating agreements through July 2019. Maximum commitments under these agreements as of September 30, 2013 totaled $21.1 million. |
Recovered_Sheet1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||
Basis of Presentation | ' | |||||||||||||||||||||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||||||||||||||||||||
In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position of Comstock Resources, Inc. and subsidiaries ("Comstock" or the "Company") as of September 30, 2013 and the related results of operations and cash flows for the three months and nine months ended September 30, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||
The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to those rules and regulations, although Comstock believes that the disclosures made are adequate to make the information presented not misleading. These unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in Comstock's Annual Report on Form 10-K for the year ended December 31, 2012. | ||||||||||||||||||||||||||||||||||||||
The results of operations for the three months and nine months ended September 30, 2013 are not necessarily an indication of the results expected for the full year. | ||||||||||||||||||||||||||||||||||||||
These unaudited consolidated financial statements include the accounts of Comstock and its wholly owned and controlled subsidiaries. The consolidated financial statements for the nine months ended September 30, 2012 also include the accounts of a variable interest entity where the Company was the primary beneficiary of the arrangements. Intercompany balances and transactions have been eliminated in consolidation. In connection with a reverse like-kind exchange in accordance with Section 1031 of the Internal Revenue Code, the Company assigned the rights to acquire ownership of certain oil and gas properties acquired in 2011 to a variable interest entity formed by an exchange accommodation titleholder. The Company operated these properties pursuant to lease and management agreements with that entity, and had a call option which allowed the Company to terminate the exchange transaction at any time up and until the expiration date of the exchange. Because the Company was the primary beneficiary of these arrangements, all revenues and expenses incurred related to the properties are included in the Company's consolidated results of operations for the nine months ended September 30, 2012. These agreements terminated upon the transfer of the acquired properties from the exchange accommodation titleholder to Comstock in May 2012, when the exchange was finalized. | ||||||||||||||||||||||||||||||||||||||
Reclassifications | ' | |||||||||||||||||||||||||||||||||||||
Reclassifications | ||||||||||||||||||||||||||||||||||||||
Certain reclassifications have been made to prior period's financial statements, consisting primarily of reclassifications to reflect the Company's West Texas oil and gas properties as discontinued operations. | ||||||||||||||||||||||||||||||||||||||
Marketable Securities | ' | |||||||||||||||||||||||||||||||||||||
Marketable Securities | ||||||||||||||||||||||||||||||||||||||
As of December 31, 2012, the Company held 600,000 shares of Stone Energy Corporation common stock which was reflected in the consolidated balance sheet as marketable securities. During the nine months ended September 30, 2013, these shares with a cost basis of $5.5 million were sold for proceeds of $13.4 million. Comstock realized a gain before income taxes of $7.9 million on the sale which is included in other income in the consolidated statements of operations. During the nine months ended September 30, 2012, the Company sold 1,206,000 shares of Stone Energy Corporation common stock for total proceeds of $37.7 million and realized a gain before income taxes of $26.6 million for the nine months ended September 30, 2012. The Company utilized the specific identification method to determine the cost of the securities that were sold. | ||||||||||||||||||||||||||||||||||||||
Property and Equipment | ' | |||||||||||||||||||||||||||||||||||||
Property and Equipment | ||||||||||||||||||||||||||||||||||||||
The Company follows the successful efforts method of accounting for its oil and gas properties. Costs incurred to acquire oil and gas leasehold are capitalized. The Company also assesses the need for an impairment of the costs capitalized for its oil and gas properties on a property or cost center basis. Impairment charges related to the Company's oil and gas properties of $0.7 million and $5.4 million were recognized during the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
Unproved oil and gas properties are periodically assessed and any impairment in value is charged to exploration expense. The costs of unproved properties which are determined to be productive are transferred to oil and gas properties and amortized on an equivalent unit-of-production basis. The Company's assessments of its unevaluated acreage have indicated that certain leases were expected to expire prior to the Company conducting drilling operations. Accordingly, impairment charges were recognized in exploration expense of $3.0 million and $1.4 million for the three months ended September 30, 2013 and 2012, respectively, and $14.9 million and $2.7 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
West Texas Divestiture | ' | |||||||||||||||||||||||||||||||||||||
West Texas Divestiture | ||||||||||||||||||||||||||||||||||||||
On May 14, 2013, the Company completed the sale of its oil and gas properties located in Reeves and Gaines counties in West Texas to third parties for $823.7 million and realized a gain of $230.6 million which is reflected as a component of income from discontinued operations in the nine months ended September 30, 2013. | ||||||||||||||||||||||||||||||||||||||
Assets and liabilities of discontinued operations as of December 31, 2012 were as follows: | ||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Accounts Receivable | $ | 5,924 | ||||||||||||||||||||||||||||||||||||
Other Current Assets | 1,644 | |||||||||||||||||||||||||||||||||||||
Total Current Assets | 7,568 | |||||||||||||||||||||||||||||||||||||
Unproved Oil and Gas Properties | 150,801 | |||||||||||||||||||||||||||||||||||||
Proved Oil and Gas Properties: | ||||||||||||||||||||||||||||||||||||||
Leasehold Costs | 225,546 | |||||||||||||||||||||||||||||||||||||
Wells and related equipment and facilities | 180,475 | |||||||||||||||||||||||||||||||||||||
Other | 673 | |||||||||||||||||||||||||||||||||||||
Accumulated depreciation, depletion and amortization | (46,129 | ) | ||||||||||||||||||||||||||||||||||||
Net Property and Equipment | 511,366 | |||||||||||||||||||||||||||||||||||||
Total Assets of Discontinued Operations | $ | 518,934 | ||||||||||||||||||||||||||||||||||||
Accounts Payable | $ | 21,302 | ||||||||||||||||||||||||||||||||||||
Accrued Liabilities | 10,371 | |||||||||||||||||||||||||||||||||||||
Reserve for Future Abandonment Costs | 1,607 | |||||||||||||||||||||||||||||||||||||
Liabilities of Discontinued Operations | $ | 33,280 | ||||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations was comprised of the following: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Oil and gas sales | $ | — | $ | 15,754 | $ | 25,125 | $ | 34,078 | ||||||||||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||||||||||||
Production taxes | — | 758 | 1,120 | 1,667 | ||||||||||||||||||||||||||||||||||
Gathering and transportation | — | 349 | 501 | 758 | ||||||||||||||||||||||||||||||||||
Lease operating | — | 2,541 | 9,853 | 5,587 | ||||||||||||||||||||||||||||||||||
Depletion, depreciation and amortization | — | 7,694 | 8,649 | 13,888 | ||||||||||||||||||||||||||||||||||
Interest expense(1) | — | 2,008 | 6,346 | 4,120 | ||||||||||||||||||||||||||||||||||
Total costs and expenses | — | 13,350 | 26,469 | 26,020 | ||||||||||||||||||||||||||||||||||
Gain on sale of discontinued operations | — | — | 230,637 | — | ||||||||||||||||||||||||||||||||||
Income from discontinued operations before income taxes | — | 2,404 | 229,293 | 8,058 | ||||||||||||||||||||||||||||||||||
Benefit from (provision for) income taxes | — | 11,359 | (80,684 | ) | (3,882 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations | $ | — | $ | 13,763 | $ | 148,609 | $ | 4,176 | ||||||||||||||||||||||||||||||
Net Production Data: | ||||||||||||||||||||||||||||||||||||||
Oil (Mbbls) | — | 172 | 270 | 369 | ||||||||||||||||||||||||||||||||||
Natural Gas (Mmcf) | — | 202 | 410 | 474 | ||||||||||||||||||||||||||||||||||
Natural Gas Equivalent (Mmcfe) | — | 1,235 | 2,031 | 2,686 | ||||||||||||||||||||||||||||||||||
(1) Interest expense was allocated to discontinued operations based on the ratio of the net assets of discontinued operations to our consolidated net assets plus long-term debt. Interest expense is net of capitalized interest of $2,629 for the three months ended September 30, 2012 and $2,010 and $7,022 for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | ' | |||||||||||||||||||||||||||||||||||||
Accrued Liabilities | ||||||||||||||||||||||||||||||||||||||
Accrued liabilities at September 30, 2013 and December 31, 2012 consist of the following: | ||||||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Accrued drilling costs | $ | 12,868 | $ | 4,726 | ||||||||||||||||||||||||||||||||||
Accrued interest | 31,415 | 12,351 | ||||||||||||||||||||||||||||||||||||
Accrued transportation costs payable | 2,805 | 3,553 | ||||||||||||||||||||||||||||||||||||
Accrued ad valorem taxes payable | 4,500 | — | ||||||||||||||||||||||||||||||||||||
Accrued oil and gas property acquisition costs | — | 2,413 | ||||||||||||||||||||||||||||||||||||
Advance from joint venture partner | — | 7,286 | ||||||||||||||||||||||||||||||||||||
Other accrued liabilities | 9,098 | 6,672 | ||||||||||||||||||||||||||||||||||||
$ | 60,686 | $ | 37,001 | |||||||||||||||||||||||||||||||||||
Reserve for Future Abandonment Costs | ' | |||||||||||||||||||||||||||||||||||||
Reserve for Future Abandonment Costs | ||||||||||||||||||||||||||||||||||||||
Comstock's asset retirement obligations relate to future plugging and abandonment expenses on its oil and gas properties and related facilities disposal. The following table summarizes the changes in Comstock's total estimated liability during the nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Future abandonment costs – beginning of period | $ | 16,387 | $ | 13,997 | ||||||||||||||||||||||||||||||||||
Accretion expense – continuing operations | 716 | 504 | ||||||||||||||||||||||||||||||||||||
Accretion expense – discontinued operations | — | 33 | ||||||||||||||||||||||||||||||||||||
New wells placed on production – continuing operations | 599 | 583 | ||||||||||||||||||||||||||||||||||||
New wells placed on production – discontinued operations | — | 645 | ||||||||||||||||||||||||||||||||||||
Liabilities settled and assets disposed of – continuing operations | (555 | ) | (1,194 | ) | ||||||||||||||||||||||||||||||||||
Liabilities settled and assets disposed of – discontinued operations | — | (23 | ) | |||||||||||||||||||||||||||||||||||
Liabilities reclassified to discontinued operations | — | (1,395 | ) | |||||||||||||||||||||||||||||||||||
Future abandonment costs – end of period | $ | 17,147 | $ | 13,150 | ||||||||||||||||||||||||||||||||||
Derivative Financial Instruments and Hedging Activities | ' | |||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments and Hedging Activities | ||||||||||||||||||||||||||||||||||||||
Comstock periodically uses swaps, floors and collars to hedge oil and natural gas prices and interest rates. Swaps are settled monthly based on differences between the prices specified in the instruments and the settlement prices of futures contracts. Generally, when the applicable settlement price is less than the price specified in the contract, Comstock receives a settlement from the counterparty based on the difference multiplied by the volume or amounts hedged. Similarly, when the applicable settlement price exceeds the price specified in the contract, Comstock pays the counterparty based on the difference. Comstock generally receives a settlement from the counterparty for floors when the applicable settlement price is less than the price specified in the contract, which is based on the difference multiplied by the volumes hedged. For collars, generally Comstock receives a settlement from the counterparty when the settlement price is below the floor and pays a settlement to the counterparty when the settlement price exceeds the cap. No settlement occurs when the settlement price falls between the floor and cap. | ||||||||||||||||||||||||||||||||||||||
As of September 30, 2013, the Company had the following outstanding oil price derivatives: | ||||||||||||||||||||||||||||||||||||||
Weighted-Average | Volume (barrels) | Contract Period | ||||||||||||||||||||||||||||||||||||
Contract Price | ||||||||||||||||||||||||||||||||||||||
Crude Oil Price Swap Agreements | $98.67 per Barrel | 540,000 | October 2013 – | |||||||||||||||||||||||||||||||||||
Dec-13 | ||||||||||||||||||||||||||||||||||||||
Crude Oil Price Swap Agreements | $96.31 per Barrel | 1,985,000 | January 2014 – | |||||||||||||||||||||||||||||||||||
Dec-14 | ||||||||||||||||||||||||||||||||||||||
All of the Company's derivative financial instruments are used for risk management purposes and by policy none are held for trading or speculative purposes. Comstock minimizes credit risk to counterparties of its derivative financial instruments through formal credit policies, monitoring procedures, and diversification. All of Comstock’s derivative financial instruments are with parties that are lenders under its bank credit facility. The Company is not required to provide any credit support to its counterparties other than cross collateralization with the assets securing its bank credit facility. None of the Company's derivative financial instruments involve payment or receipt of premiums. | ||||||||||||||||||||||||||||||||||||||
None of the derivative contracts have been designated as cash flow hedges. The Company recognizes the realized gains and losses and unrealized gains and losses due to the change in the fair value of its derivative financial instruments as separate components of other income (expenses). The Company had realized losses on its oil price swaps of $3.6 million and realized gains of $3.3 million during the three months ended September 30, 2013 and 2012, respectively, and realized gains of $1.6 million and $4.7 million during the nine months ended September 30, 2013 and 2012, respectively. The estimated fair value of the Company's derivative financial instruments, which equals their carrying value, was a net liability of $0.3 million as of September 30, 2013, comprised of a long term asset of $1.8 million and a current liability of $2.1 million, based on estimated settlement dates. The estimated fair value of the Company's derivative financial instruments at December 31, 2012 was$11.7 million which is reflected as a current asset. The Company had unrealized losses of $3.8 million and $11.1 million during the three months ended September 30, 2013 and 2012, respectively, due to the change in the fair value. The Company had unrealized losses of $12.0 million and unrealized gains of $13.5 million during the nine months ended September 30, 2013 and 2012, respectively, due to the change in the fair value. | ||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||||||||||||||||||
Comstock accounts for employee stock-based compensation under the fair value method. Compensation cost is measured at the grant date based on the fair value of the award and is recognized over the award vesting period. During the three months ended September 30, 2013 and 2012, the Company recognized $3.1 million and $3.3 million, respectively, of stock-based compensation expense within general and administrative expenses related to awards of restricted stock and performance stock units to its employees and directors. For the nine months ended September 30, 2013 and 2012, the Company recognized $9.6 million and $10.2 million, respectively, of stock-based compensation expense within general and administrative expenses. | ||||||||||||||||||||||||||||||||||||||
As of September 30, 2013, Comstock had 1,519,889 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $24.02 per share. Total unrecognized compensation cost related to unvested restricted stock grants of $12.0 million as of September 30, 2013 is expected to be recognized over a period of 1.9 years. As of September 30, 2013, Comstock had 249,302 performance stock units outstanding at a weighted average grant date fair value of $21.19 per unit. Total unrecognized compensation cost related to these grants of $2.9 million as of September 30, 2013 is expected to be recognized over a period of 1.6 years. | ||||||||||||||||||||||||||||||||||||||
As of September 30, 2013, Comstock had outstanding options to purchase 115,150 shares of common stock at a weighted average exercise price of $32.90 per share. All of the stock options were exercisable and there were no unrecognized costs related to the stock options as of September 30, 2013. No stock options were exercised during the nine months ended September 30, 2013 or 2012. | ||||||||||||||||||||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||||||||||||||||||
The following is an analysis of consolidated income tax benefit from continuing operations: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Current benefit | $ | — | $ | 12 | $ | — | $ | 211 | ||||||||||||||||||||||||||||||
Deferred benefit | 12,554 | 7,800 | 36,792 | 11,235 | ||||||||||||||||||||||||||||||||||
Benefit from income taxes | $ | 12,554 | $ | 7,812 | $ | 36,792 | $ | 11,446 | ||||||||||||||||||||||||||||||
Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates. The difference between the Company's effective tax rate and the 35% federal statutory rate is mainly caused by non-deductible stock compensation and state taxes. The impact of these items varies based upon the Company's projected full year income or loss and the jurisdictions that are expected to generate the projected income and/or losses. | ||||||||||||||||||||||||||||||||||||||
The difference between the Company's customary rate of 35% and the effective tax rate on income before income taxes from continuing operations is due to the following: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Tax at statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||||||||||||||||||||||||
Tax effect of: | ||||||||||||||||||||||||||||||||||||||
Nondeductible stock-based compensation | (0.6 | ) | (18.0 | ) | (1.1 | ) | (5.1 | ) | ||||||||||||||||||||||||||||||
State income taxes, net of federal benefit | (0.3 | ) | (0.6 | ) | 0.6 | 1.0 | ||||||||||||||||||||||||||||||||
Other | 0.3 | (1.3 | ) | (0.1 | ) | (0.4 | ) | |||||||||||||||||||||||||||||||
Effective tax rate | 34.4 | % | 15.1 | % | 34.4 | % | 30.5 | % | ||||||||||||||||||||||||||||||
The Company's federal income tax returns for the years subsequent to December 31, 2007 remain subject to examination. The Company's income tax returns in major state income tax jurisdictions remain subject to examination from various periods subsequent to December 31, 2007. State tax returns in two state jurisdictions are currently under review. The Company has evaluated the preliminary findings in these jurisdictions and believes it is more likely than not that the ultimate resolution of these matters will not have a material effect on its financial statements. The Company currently believes that all other significant filing positions are highly certain and that all of its other significant income tax positions and deductions would be sustained under audit or the final resolution would not have a material effect on the consolidated financial statements. Therefore the Company has not established any significant reserves for uncertain tax positions. | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||
The Company holds or has held certain items that are required to be measured at fair value. These include cash equivalents held in bank accounts and derivative financial instruments in the form of oil price swap agreements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements: | ||||||||||||||||||||||||||||||||||||||
Level 1 – Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. | ||||||||||||||||||||||||||||||||||||||
Level 2 – Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. | ||||||||||||||||||||||||||||||||||||||
Level 3 – Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. | ||||||||||||||||||||||||||||||||||||||
The Company's cash equivalents and restricted cash valuations are a Level 1 measurement. The Company's oil price swap agreements are not traded on a public exchange, and their value is determined utilizing a discounted cash flow model based on inputs that are readily available in public markets and, accordingly, the valuation of these swap agreements is categorized as a Level 2 measurement. | ||||||||||||||||||||||||||||||||||||||
The following table summarizes financial assets and liabilities accounted for at fair value as of September 30, 2013: | ||||||||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | ||||||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||||||
Measured at | ||||||||||||||||||||||||||||||||||||||
Fair Value at | ||||||||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Assets measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
Cash held in bank accounts | $ | 228,353 | $ | 228,353 | $ | — | ||||||||||||||||||||||||||||||||
Derivative financial instruments | 1,820 | — | 1,820 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 230,173 | $ | 228,353 | $ | 1,820 | ||||||||||||||||||||||||||||||||
Liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
Derivative financial instruments | $ | 2,131 | $ | — | $ | 2,131 | ||||||||||||||||||||||||||||||||
The following table summarizes the changes in the fair values of derivative financial instruments, which are Level 2 assets (liabilities), for the three months and nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,524 | $ | 11,651 | ||||||||||||||||||||||||||||||||||
Purchases and settlements (net) | 3,560 | (1,641 | ) | |||||||||||||||||||||||||||||||||||
Realized gains (losses) included in other income (expenses) | (3,560 | ) | 1,641 | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) included in other income (expenses) | (3,835 | ) | (11,962 | ) | ||||||||||||||||||||||||||||||||||
Balance at end of period | $ | (311 | ) | $ | (311 | ) | ||||||||||||||||||||||||||||||||
The following table presents the carrying amounts and estimated fair value of the Company's other financial instruments: | ||||||||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Long-term debt, including current portion | $ | 883,897 | $ | 994,186 | $ | 1,324,383 | $ | 1,382,000 | ||||||||||||||||||||||||||||||
The fair market value of the Company's fixed rate debt was based on the market prices as of September 30, 2013 and December 31, 2012, a Level 1 measurement. The fair value of the floating rate debt approximated its carrying value, a Level 2 measurement. | ||||||||||||||||||||||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||||||||||||||||||||||
Earnings Per Share | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share is determined without the effect of any outstanding potentially dilutive stock options and diluted earnings per share is determined with the effect of outstanding stock options that are potentially dilutive. Unvested share-based payment awards containing nonforfeitable rights to dividends are considered to be participatory securities and are included in the computation of basic and diluted earnings per share pursuant to the two-class method. Performance share units ("PSUs") represent the right to receive a number of shares of the Company's common stock that may range from zero to up to three times the number of PSUs granted on the award date based on the achievement of certain performance measures during a performance period. The number of potentially dilutive shares related to PSUs is based on the number of shares, if any, which would be issuable at the end of the respective period, assuming that date was the end of the contingency period. The treasury stock method is used to measure the dilutive effect of PSUs. | ||||||||||||||||||||||||||||||||||||||
Basic and diluted earnings per share for the three months and nine months ended September 30, 2013 and 2012 were determined as follows: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Income | Shares | Per | Income | Shares | Per | |||||||||||||||||||||||||||||||||
(Loss) | Share | (Loss) | Share | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||
Net Loss From Continuing Operations | $ | (24,034 | ) | $ | (44,212 | ) | ||||||||||||||||||||||||||||||||
Loss Allocable to Unvested Stock Grants | — | — | ||||||||||||||||||||||||||||||||||||
Basic Net Loss From Continuing Operations | $ | (24,034 | ) | 46,570 | $ | (0.52 | ) | $ | (44,212 | ) | 46,443 | $ | (0.95 | ) | ||||||||||||||||||||||||
Attributable to Common Stock | ||||||||||||||||||||||||||||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||||||||||||||||||||
Stock Options | — | — | — | — | ||||||||||||||||||||||||||||||||||
Performance Stock Units | — | — | — | — | ||||||||||||||||||||||||||||||||||
Diluted Net Loss From Continuing Operations Attributable to Common Stock | $ | (24,034 | ) | 46,570 | $ | (0.52 | ) | $ | (44,212 | ) | 46,443 | $ | (0.95 | ) | ||||||||||||||||||||||||
Net Income From Discontinued Operations | $ | 13,763 | ||||||||||||||||||||||||||||||||||||
Income Allocable to Unvested Stock Grants | — | |||||||||||||||||||||||||||||||||||||
Basic Net Income From Discontinued Operations Attributable to Common Stock | $ | 13,763 | 46,443 | $ | 0.29 | |||||||||||||||||||||||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||||||||||||||||||||
Stock Options | — | — | ||||||||||||||||||||||||||||||||||||
Performance Stock Units | — | — | ||||||||||||||||||||||||||||||||||||
Diluted Net Income From Discontinued Operations Attributable to Common Stock | $ | 13,763 | 46,443 | $ | 0.29 | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Income | Shares | Per | Income | Shares | Per | |||||||||||||||||||||||||||||||||
(Loss) | Share | (Loss) | Share | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||
Net Loss From Continuing Operations | $ | (70,082 | ) | $ | (26,085 | ) | ||||||||||||||||||||||||||||||||
Loss Allocable to Unvested Stock Grants | 2,254 | — | ||||||||||||||||||||||||||||||||||||
Basic Net Loss From Continuing Operations | $ | (67,828 | ) | 46,684 | $ | (1.45 | ) | $ | (26,085 | ) | 46,414 | $ | (0.56 | ) | ||||||||||||||||||||||||
Attributable to Common Stock | ||||||||||||||||||||||||||||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||||||||||||||||||||
Stock Options | — | — | — | — | ||||||||||||||||||||||||||||||||||
Performance Stock Units | — | — | — | — | ||||||||||||||||||||||||||||||||||
Diluted Net Loss From Continuing Operations Attributable to Common Stock | $ | (67,828 | ) | 46,684 | $ | (1.45 | ) | $ | (26,085 | ) | 46,414 | $ | (0.56 | ) | ||||||||||||||||||||||||
Net Income From Discontinued Operations | $ | 148,609 | $ | 4,176 | ||||||||||||||||||||||||||||||||||
Income Allocable to Unvested Stock Grants | (4,782 | ) | — | |||||||||||||||||||||||||||||||||||
Basic Net Income From Discontinued Operations Attributable to Common Stock | $ | 143,827 | 46,684 | $ | 3.08 | $ | 4,176 | 46,414 | $ | 0.09 | ||||||||||||||||||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||||||||||||||||||||
Stock Options | — | — | — | — | ||||||||||||||||||||||||||||||||||
Performance Stock Units | — | — | — | — | ||||||||||||||||||||||||||||||||||
Diluted Net Income From Discontinued Operations Attributable to Common Stock | $ | 143,827 | 46,684 | $ | 3.08 | $ | 4,176 | 46,414 | $ | 0.09 | ||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, 1,519,889 and 1,960,835 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a nonforfeitable right to participate in any dividends that might be declared and have the right to vote. | ||||||||||||||||||||||||||||||||||||||
Weighted average shares of unvested restricted stock were as follows: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Unvested restricted stock | 1,520 | 1,717 | 1,552 | 1,728 | ||||||||||||||||||||||||||||||||||
Options to purchase common stock and PSUs that were outstanding and that were excluded as anti-dilutive from the determination of diluted earnings per share are as follows: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands except per share/unit data) | ||||||||||||||||||||||||||||||||||||||
Weighted average anti-dilutive stock options | 115 | 157 | 135 | 172 | ||||||||||||||||||||||||||||||||||
Weighted average exercise price per share | $ | 32.90 | $ | 38.36 | $ | 32.90 | $ | 37.64 | ||||||||||||||||||||||||||||||
Weighted average performance share units | 91 | — | 56 | — | ||||||||||||||||||||||||||||||||||
Weighted average grant date fair value per unit | $ | 21.19 | $ | — | $ | 21.15 | $ | — | ||||||||||||||||||||||||||||||
For the three months and nine months ended September 30, 2013 and 2012, the excluded options that were anti-dilutive were at exercise prices in excess of the average stock price for each of the periods presented. | ||||||||||||||||||||||||||||||||||||||
Supplementary Information With Respect to the Consolidated Statements of Cash Flows | ' | |||||||||||||||||||||||||||||||||||||
Supplementary Information With Respect to the Consolidated Statements of Cash Flows | ||||||||||||||||||||||||||||||||||||||
For the purpose of the consolidated statements of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At September 30, 2013 and December 31, 2012 the Company's cash investments consisted of cash held in bank accounts. | ||||||||||||||||||||||||||||||||||||||
The following is a summary of cash payments made for interest and income taxes: | ||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Cash Payments: | ||||||||||||||||||||||||||||||||||||||
Interest payments | $ | 44,228 | $ | 36,749 | ||||||||||||||||||||||||||||||||||
Income tax payments (refunds) | $ | 768 | $ | (58 | ) | |||||||||||||||||||||||||||||||||
The Company capitalizes interest on its unevaluated oil and gas property costs during periods when it is conducting exploration activity on this acreage. The Company capitalized interest of $0.7 million and $5.9 million for the three months ended September 30, 2013 and 2012, respectively, and $4.4 million and $16.5 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) consists of the following: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (24,034 | ) | $ | (30,449 | ) | $ | 78,527 | $ | (21,909 | ) | |||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||
Realized gains on marketable securities reclassified to gain on sale of marketable securities, net of a benefit from income taxes of $2,757 in 2013 and $9,318 in 2012 | — | — | (5,120 | ) | (17,303 | ) | ||||||||||||||||||||||||||||||||
Unrealized gain from derivatives, net of a benefit from income taxes of $161 in 2012 | — | — | — | (298 | ) | |||||||||||||||||||||||||||||||||
Unrealized gains (losses) on marketable securities, net of provision for (benefit from) income taxes of $- and $377 in 2013 and $(46) and $1,797 in 2012 | — | (86 | ) | 702 | 3,337 | |||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | $ | (24,034 | ) | $ | (30,535 | ) | $ | 74,109 | $ | (36,173 | ) | |||||||||||||||||||||||||||
The following table provides a summary of the amounts included in accumulated other comprehensive income, net of income taxes, for the nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||||||||
Nine Months | ||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||||
Marketable | ||||||||||||||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Balance as of beginning of period | $ | 4,418 | ||||||||||||||||||||||||||||||||||||
Changes in value | 702 | |||||||||||||||||||||||||||||||||||||
Reclassification to earnings | (5,120 | ) | ||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | — | ||||||||||||||||||||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||
Components of Assets and Liabilities of Discontinued Operations | ' | |||||||||||||||||||||||||||||||||||||
Assets and liabilities of discontinued operations as of December 31, 2012 were as follows: | ||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Accounts Receivable | $ | 5,924 | ||||||||||||||||||||||||||||||||||||
Other Current Assets | 1,644 | |||||||||||||||||||||||||||||||||||||
Total Current Assets | 7,568 | |||||||||||||||||||||||||||||||||||||
Unproved Oil and Gas Properties | 150,801 | |||||||||||||||||||||||||||||||||||||
Proved Oil and Gas Properties: | ||||||||||||||||||||||||||||||||||||||
Leasehold Costs | 225,546 | |||||||||||||||||||||||||||||||||||||
Wells and related equipment and facilities | 180,475 | |||||||||||||||||||||||||||||||||||||
Other | 673 | |||||||||||||||||||||||||||||||||||||
Accumulated depreciation, depletion and amortization | (46,129 | ) | ||||||||||||||||||||||||||||||||||||
Net Property and Equipment | 511,366 | |||||||||||||||||||||||||||||||||||||
Total Assets of Discontinued Operations | $ | 518,934 | ||||||||||||||||||||||||||||||||||||
Accounts Payable | $ | 21,302 | ||||||||||||||||||||||||||||||||||||
Accrued Liabilities | 10,371 | |||||||||||||||||||||||||||||||||||||
Reserve for Future Abandonment Costs | 1,607 | |||||||||||||||||||||||||||||||||||||
Liabilities of Discontinued Operations | $ | 33,280 | ||||||||||||||||||||||||||||||||||||
Summary of Loss From Discontinued Operations | ' | |||||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations was comprised of the following: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Oil and gas sales | $ | — | $ | 15,754 | $ | 25,125 | $ | 34,078 | ||||||||||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||||||||||||
Production taxes | — | 758 | 1,120 | 1,667 | ||||||||||||||||||||||||||||||||||
Gathering and transportation | — | 349 | 501 | 758 | ||||||||||||||||||||||||||||||||||
Lease operating | — | 2,541 | 9,853 | 5,587 | ||||||||||||||||||||||||||||||||||
Depletion, depreciation and amortization | — | 7,694 | 8,649 | 13,888 | ||||||||||||||||||||||||||||||||||
Interest expense(1) | — | 2,008 | 6,346 | 4,120 | ||||||||||||||||||||||||||||||||||
Total costs and expenses | — | 13,350 | 26,469 | 26,020 | ||||||||||||||||||||||||||||||||||
Gain on sale of discontinued operations | — | — | 230,637 | — | ||||||||||||||||||||||||||||||||||
Income from discontinued operations before income taxes | — | 2,404 | 229,293 | 8,058 | ||||||||||||||||||||||||||||||||||
Benefit from (provision for) income taxes | — | 11,359 | (80,684 | ) | (3,882 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations | $ | — | $ | 13,763 | $ | 148,609 | $ | 4,176 | ||||||||||||||||||||||||||||||
Net Production Data: | ||||||||||||||||||||||||||||||||||||||
Oil (Mbbls) | — | 172 | 270 | 369 | ||||||||||||||||||||||||||||||||||
Natural Gas (Mmcf) | — | 202 | 410 | 474 | ||||||||||||||||||||||||||||||||||
Natural Gas Equivalent (Mmcfe) | — | 1,235 | 2,031 | 2,686 | ||||||||||||||||||||||||||||||||||
(1) Interest expense was allocated to discontinued operations based on the ratio of the net assets of discontinued operations to our consolidated net assets plus long-term debt. Interest expense is net of capitalized interest of $2,629 for the three months ended September 30, 2012 and $2,010 and $7,022 for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
Summary of Accrued Liabilities | ' | |||||||||||||||||||||||||||||||||||||
Accrued liabilities at September 30, 2013 and December 31, 2012 consist of the following: | ||||||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Accrued drilling costs | $ | 12,868 | $ | 4,726 | ||||||||||||||||||||||||||||||||||
Accrued interest | 31,415 | 12,351 | ||||||||||||||||||||||||||||||||||||
Accrued transportation costs payable | 2,805 | 3,553 | ||||||||||||||||||||||||||||||||||||
Accrued ad valorem taxes payable | 4,500 | — | ||||||||||||||||||||||||||||||||||||
Accrued oil and gas property acquisition costs | — | 2,413 | ||||||||||||||||||||||||||||||||||||
Advance from joint venture partner | — | 7,286 | ||||||||||||||||||||||||||||||||||||
Other accrued liabilities | 9,098 | 6,672 | ||||||||||||||||||||||||||||||||||||
$ | 60,686 | $ | 37,001 | |||||||||||||||||||||||||||||||||||
Summary of Changes in Reserve for Future Abandonment Costs | ' | |||||||||||||||||||||||||||||||||||||
Comstock's asset retirement obligations relate to future plugging and abandonment expenses on its oil and gas properties and related facilities disposal. The following table summarizes the changes in Comstock's total estimated liability during the nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Future abandonment costs – beginning of period | $ | 16,387 | $ | 13,997 | ||||||||||||||||||||||||||||||||||
Accretion expense – continuing operations | 716 | 504 | ||||||||||||||||||||||||||||||||||||
Accretion expense – discontinued operations | — | 33 | ||||||||||||||||||||||||||||||||||||
New wells placed on production – continuing operations | 599 | 583 | ||||||||||||||||||||||||||||||||||||
New wells placed on production – discontinued operations | — | 645 | ||||||||||||||||||||||||||||||||||||
Liabilities settled and assets disposed of – continuing operations | (555 | ) | (1,194 | ) | ||||||||||||||||||||||||||||||||||
Liabilities settled and assets disposed of – discontinued operations | — | (23 | ) | |||||||||||||||||||||||||||||||||||
Liabilities reclassified to discontinued operations | — | (1,395 | ) | |||||||||||||||||||||||||||||||||||
Future abandonment costs – end of period | $ | 17,147 | $ | 13,150 | ||||||||||||||||||||||||||||||||||
Summary of Outstanding Oil Price Derivatives | ' | |||||||||||||||||||||||||||||||||||||
As of September 30, 2013, the Company had the following outstanding oil price derivatives: | ||||||||||||||||||||||||||||||||||||||
Weighted-Average | Volume (barrels) | Contract Period | ||||||||||||||||||||||||||||||||||||
Contract Price | ||||||||||||||||||||||||||||||||||||||
Crude Oil Price Swap Agreements | $98.67 per Barrel | 540,000 | October 2013 – | |||||||||||||||||||||||||||||||||||
Dec-13 | ||||||||||||||||||||||||||||||||||||||
Crude Oil Price Swap Agreements | $96.31 per Barrel | 1,985,000 | January 2014 – | |||||||||||||||||||||||||||||||||||
Dec-14 | ||||||||||||||||||||||||||||||||||||||
Income Tax Expense from Continuing Operations | ' | |||||||||||||||||||||||||||||||||||||
The following is an analysis of consolidated income tax benefit from continuing operations: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Current benefit | $ | — | $ | 12 | $ | — | $ | 211 | ||||||||||||||||||||||||||||||
Deferred benefit | 12,554 | 7,800 | 36,792 | 11,235 | ||||||||||||||||||||||||||||||||||
Benefit from income taxes | $ | 12,554 | $ | 7,812 | $ | 36,792 | $ | 11,446 | ||||||||||||||||||||||||||||||
Difference Between Customary Rate and Effective Tax Rate on Income Before Income Taxes Due | ' | |||||||||||||||||||||||||||||||||||||
The difference between the Company's customary rate of 35% and the effective tax rate on income before income taxes from continuing operations is due to the following: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Tax at statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||||||||||||||||||||||||
Tax effect of: | ||||||||||||||||||||||||||||||||||||||
Nondeductible stock-based compensation | (0.6 | ) | (18.0 | ) | (1.1 | ) | (5.1 | ) | ||||||||||||||||||||||||||||||
State income taxes, net of federal benefit | (0.3 | ) | (0.6 | ) | 0.6 | 1.0 | ||||||||||||||||||||||||||||||||
Other | 0.3 | (1.3 | ) | (0.1 | ) | (0.4 | ) | |||||||||||||||||||||||||||||||
Effective tax rate | 34.4 | % | 15.1 | % | 34.4 | % | 30.5 | % | ||||||||||||||||||||||||||||||
Summary of Financial Assets and Liabilities at Fair Value | ' | |||||||||||||||||||||||||||||||||||||
The following table summarizes financial assets and liabilities accounted for at fair value as of September 30, 2013: | ||||||||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | ||||||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||||||
Measured at | ||||||||||||||||||||||||||||||||||||||
Fair Value at | ||||||||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Assets measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
Cash held in bank accounts | $ | 228,353 | $ | 228,353 | $ | — | ||||||||||||||||||||||||||||||||
Derivative financial instruments | 1,820 | — | 1,820 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 230,173 | $ | 228,353 | $ | 1,820 | ||||||||||||||||||||||||||||||||
Liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
Derivative financial instruments | $ | 2,131 | $ | — | $ | 2,131 | ||||||||||||||||||||||||||||||||
Summary of Changes in Fair Value Level 2 Assets of Derivative Financial Instruments | ' | |||||||||||||||||||||||||||||||||||||
The following table summarizes the changes in the fair values of derivative financial instruments, which are Level 2 assets (liabilities), for the three months and nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,524 | $ | 11,651 | ||||||||||||||||||||||||||||||||||
Purchases and settlements (net) | 3,560 | (1,641 | ) | |||||||||||||||||||||||||||||||||||
Realized gains (losses) included in other income (expenses) | (3,560 | ) | 1,641 | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) included in other income (expenses) | (3,835 | ) | (11,962 | ) | ||||||||||||||||||||||||||||||||||
Balance at end of period | $ | (311 | ) | $ | (311 | ) | ||||||||||||||||||||||||||||||||
Carrying Amounts and Estimated Fair Value of Other Financial Instruments | ' | |||||||||||||||||||||||||||||||||||||
The following table presents the carrying amounts and estimated fair value of the Company's other financial instruments: | ||||||||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Long-term debt, including current portion | $ | 883,897 | $ | 994,186 | $ | 1,324,383 | $ | 1,382,000 | ||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share | ' | |||||||||||||||||||||||||||||||||||||
Basic and diluted earnings per share for the three months and nine months ended September 30, 2013 and 2012 were determined as follows: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Income | Shares | Per | Income | Shares | Per | |||||||||||||||||||||||||||||||||
(Loss) | Share | (Loss) | Share | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||
Net Loss From Continuing Operations | $ | (24,034 | ) | $ | (44,212 | ) | ||||||||||||||||||||||||||||||||
Loss Allocable to Unvested Stock Grants | — | — | ||||||||||||||||||||||||||||||||||||
Basic Net Loss From Continuing Operations | $ | (24,034 | ) | 46,570 | $ | (0.52 | ) | $ | (44,212 | ) | 46,443 | $ | (0.95 | ) | ||||||||||||||||||||||||
Attributable to Common Stock | ||||||||||||||||||||||||||||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||||||||||||||||||||
Stock Options | — | — | — | — | ||||||||||||||||||||||||||||||||||
Performance Stock Units | — | — | — | — | ||||||||||||||||||||||||||||||||||
Diluted Net Loss From Continuing Operations Attributable to Common Stock | $ | (24,034 | ) | 46,570 | $ | (0.52 | ) | $ | (44,212 | ) | 46,443 | $ | (0.95 | ) | ||||||||||||||||||||||||
Net Income From Discontinued Operations | $ | 13,763 | ||||||||||||||||||||||||||||||||||||
Income Allocable to Unvested Stock Grants | — | |||||||||||||||||||||||||||||||||||||
Basic Net Income From Discontinued Operations Attributable to Common Stock | $ | 13,763 | 46,443 | $ | 0.29 | |||||||||||||||||||||||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||||||||||||||||||||
Stock Options | — | — | ||||||||||||||||||||||||||||||||||||
Performance Stock Units | — | — | ||||||||||||||||||||||||||||||||||||
Diluted Net Income From Discontinued Operations Attributable to Common Stock | $ | 13,763 | 46,443 | $ | 0.29 | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Income | Shares | Per | Income | Shares | Per | |||||||||||||||||||||||||||||||||
(Loss) | Share | (Loss) | Share | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||
Net Loss From Continuing Operations | $ | (70,082 | ) | $ | (26,085 | ) | ||||||||||||||||||||||||||||||||
Loss Allocable to Unvested Stock Grants | 2,254 | — | ||||||||||||||||||||||||||||||||||||
Basic Net Loss From Continuing Operations | $ | (67,828 | ) | 46,684 | $ | (1.45 | ) | $ | (26,085 | ) | 46,414 | $ | (0.56 | ) | ||||||||||||||||||||||||
Attributable to Common Stock | ||||||||||||||||||||||||||||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||||||||||||||||||||
Stock Options | — | — | — | — | ||||||||||||||||||||||||||||||||||
Performance Stock Units | — | — | — | — | ||||||||||||||||||||||||||||||||||
Diluted Net Loss From Continuing Operations Attributable to Common Stock | $ | (67,828 | ) | 46,684 | $ | (1.45 | ) | $ | (26,085 | ) | 46,414 | $ | (0.56 | ) | ||||||||||||||||||||||||
Net Income From Discontinued Operations | $ | 148,609 | $ | 4,176 | ||||||||||||||||||||||||||||||||||
Income Allocable to Unvested Stock Grants | (4,782 | ) | — | |||||||||||||||||||||||||||||||||||
Basic Net Income From Discontinued Operations Attributable to Common Stock | $ | 143,827 | 46,684 | $ | 3.08 | $ | 4,176 | 46,414 | $ | 0.09 | ||||||||||||||||||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||||||||||||||||||||
Stock Options | — | — | — | — | ||||||||||||||||||||||||||||||||||
Performance Stock Units | — | — | — | — | ||||||||||||||||||||||||||||||||||
Diluted Net Income From Discontinued Operations Attributable to Common Stock | $ | 143,827 | 46,684 | $ | 3.08 | $ | 4,176 | 46,414 | $ | 0.09 | ||||||||||||||||||||||||||||
Weighted Average Shares of Unvested Restricted Stock | ' | |||||||||||||||||||||||||||||||||||||
Weighted average shares of unvested restricted stock were as follows: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Unvested restricted stock | 1,520 | 1,717 | 1,552 | 1,728 | ||||||||||||||||||||||||||||||||||
Common Stock Stock Options Excluded as Anti-Dilutive from Determination of Diluted Earnings Per Share | ' | |||||||||||||||||||||||||||||||||||||
Options to purchase common stock and PSUs that were outstanding and that were excluded as anti-dilutive from the determination of diluted earnings per share are as follows: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands except per share/unit data) | ||||||||||||||||||||||||||||||||||||||
Weighted average anti-dilutive stock options | 115 | 157 | 135 | 172 | ||||||||||||||||||||||||||||||||||
Weighted average exercise price per share | $ | 32.90 | $ | 38.36 | $ | 32.90 | $ | 37.64 | ||||||||||||||||||||||||||||||
Weighted average performance share units | 91 | — | 56 | — | ||||||||||||||||||||||||||||||||||
Weighted average grant date fair value per unit | $ | 21.19 | $ | — | $ | 21.15 | $ | — | ||||||||||||||||||||||||||||||
Cash Payments Made for Interest and Income Taxes | ' | |||||||||||||||||||||||||||||||||||||
The following is a summary of cash payments made for interest and income taxes: | ||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Cash Payments: | ||||||||||||||||||||||||||||||||||||||
Interest payments | $ | 44,228 | $ | 36,749 | ||||||||||||||||||||||||||||||||||
Income tax payments (refunds) | $ | 768 | $ | (58 | ) | |||||||||||||||||||||||||||||||||
Comprehensive Loss | ' | |||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) consists of the following: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (24,034 | ) | $ | (30,449 | ) | $ | 78,527 | $ | (21,909 | ) | |||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||
Realized gains on marketable securities reclassified to gain on sale of marketable securities, net of a benefit from income taxes of $2,757 in 2013 and $9,318 in 2012 | — | — | (5,120 | ) | (17,303 | ) | ||||||||||||||||||||||||||||||||
Unrealized gain from derivatives, net of a benefit from income taxes of $161 in 2012 | — | — | — | (298 | ) | |||||||||||||||||||||||||||||||||
Unrealized gains (losses) on marketable securities, net of provision for (benefit from) income taxes of $- and $377 in 2013 and $(46) and $1,797 in 2012 | — | (86 | ) | 702 | 3,337 | |||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | $ | (24,034 | ) | $ | (30,535 | ) | $ | 74,109 | $ | (36,173 | ) | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income, Net of Income Taxes | ' | |||||||||||||||||||||||||||||||||||||
The following table provides a summary of the amounts included in accumulated other comprehensive income, net of income taxes, for the nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||||||||
Nine Months | ||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||||
Marketable | ||||||||||||||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Balance as of beginning of period | $ | 4,418 | ||||||||||||||||||||||||||||||||||||
Changes in value | 702 | |||||||||||||||||||||||||||||||||||||
Reclassification to earnings | (5,120 | ) | ||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | — | ||||||||||||||||||||||||||||||||||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Long-term Debt | ' | ||||
At September 30, 2013, long-term debt was comprised of: | |||||
(In thousands) | |||||
Bank credit facility | $ | — | |||
8 3/8% Senior Notes due 2017 | 295,637 | ||||
7 3/4% Senior Notes due 2019 | 300,000 | ||||
9 1/2% Senior Notes due 2020 | 288,260 | ||||
883,897 | |||||
Less Current Portion of 8 3/8% Senior Notes | (195,637 | ) | |||
$ | 688,260 | ||||
Recovered_Sheet2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Components of Assets and Liabilities of Discontinued Operations (Detail) (USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' |
Accounts Receivable | $5,924 |
Other Current Assets | 1,644 |
Total Current Assets | 7,568 |
Unproved Oil and Gas Properties | 150,801 |
Proved Oil and Gas Properties: | ' |
Leasehold Costs | 225,546 |
Wells and related equipment and facilities | 180,475 |
Other | 673 |
Accumulated depreciation, depletion and amortization | -46,129 |
Net Property and Equipment | 511,366 |
Total Assets of Discontinued Operations | 518,934 |
Accounts Payable | 21,302 |
Accrued Liabilities | 10,371 |
Reserve for Future Abandonment Costs | 1,607 |
Liabilities of Discontinued Operations | $33,280 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Income Loss from Discontinued Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Mcfe | MMcf | MMcf | Mcfe | |||||
MMcf | Mcfe | Mcfe | MBbls | |||||
MBbls | MBbls | MBbls | MMcf | |||||
Revenues: | ' | ' | ' | ' | ||||
Oil and gas sales | ' | $15,754 | $25,125 | $34,078 | ||||
Costs and expenses: | ' | ' | ' | ' | ||||
Production taxes | ' | 758 | 1,120 | 1,667 | ||||
Gathering and transportation | ' | 349 | 501 | 758 | ||||
Lease operating | ' | 2,541 | 9,853 | 5,587 | ||||
Depletion, depreciation and amortization | ' | 7,694 | 8,649 | 13,888 | ||||
Interest expense | ' | [1] | 2,008 | [1] | 6,346 | [1] | 4,120 | [1] |
Total costs and expenses | ' | 13,350 | 26,469 | 26,020 | ||||
Gain on sale of discontinued operations | ' | ' | 230,637 | ' | ||||
Income from discontinued operations before income taxes | ' | 2,404 | 229,293 | 8,058 | ||||
Benefit from (provision for) income taxes | ' | 11,359 | -80,684 | -3,882 | ||||
Net income (loss) from discontinued operations | ' | $13,763 | $148,609 | $4,176 | ||||
Net Production Data: | ' | ' | ' | ' | ||||
Oil (Mbbls) | ' | 172 | 270 | 369 | ||||
Natural Gas (Mmcf) | ' | 202 | 410 | 474 | ||||
Natural Gas Equivalent (Mmcfe) | ' | 1,235,000 | 2,031,000 | 2,686,000 | ||||
[1] | Interest expense was allocated to discontinued operations based on the ratio of the net assets of discontinued operations to our consolidated net assets plus long-term debt. Interest expense is net of capitalized interest of $2,629 for the three months ended September 30, 2012 and $2,010 and $7,022 for the nine months ended September 30, 2013 and 2012, respectively. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Income Loss from Discontinued Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' | ' | ' |
Capitalized interest related to Discontinued Operations | $2,629 | $2,010 | $7,022 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Accrued Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Accrued Liabilities [Line Items] | ' | ' |
Accrued drilling costs | $12,868 | $4,726 |
Accrued interest | 31,415 | 12,351 |
Accrued transportation costs payable | 2,805 | 3,553 |
Accrued ad valorem taxes payable | 4,500 | ' |
Accrued oil and gas property acquisition costs | ' | 2,413 |
Advance from joint venture partner | ' | 7,286 |
Other accrued liabilities | 9,098 | 6,672 |
Total accrued liabilities | $60,686 | $37,001 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Changes in Reserve for Future Abandonment Costs (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Asset Retirement Obligations [Line Items] | ' | ' |
Future abandonment costs – beginning of period | $16,387 | $13,997 |
Liabilities reclassified to discontinued operations | ' | -1,395 |
Future abandonment costs – end of period | 17,147 | 13,150 |
Continuing Operations | ' | ' |
Asset Retirement Obligations [Line Items] | ' | ' |
Accretion expense | 716 | 504 |
New wells placed on production | 599 | 583 |
Liabilities settled and assets disposed of | -555 | -1,194 |
Discontinued Operations | ' | ' |
Asset Retirement Obligations [Line Items] | ' | ' |
Accretion expense | ' | 33 |
New wells placed on production | ' | 645 |
Liabilities settled and assets disposed of | ' | ($23) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Outstanding Commodity Derivatives (Detail) | Sep. 30, 2013 |
bbl | |
Crude Oil Price Swap Agreements One | ' |
Derivative [Line Items] | ' |
Commodity Derivatives Weighted Average Contract Price | 98.67 |
Commodity Derivatives Volume | 540,000 |
Commodity Derivatives Beginning of Remaining Contract Period | 'October 2013 |
Commodity Derivatives End of Remaining Contract Period | 'December 2013 |
Crude Oil Price Swap Agreements Two | ' |
Derivative [Line Items] | ' |
Commodity Derivatives Weighted Average Contract Price | 96.31 |
Commodity Derivatives Volume | 1,985,000 |
Commodity Derivatives Beginning of Remaining Contract Period | 'January 2014 |
Commodity Derivatives End of Remaining Contract Period | 'December 2014 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Tax Expense from Continuing Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Expense Benefit From Continuing Operations [Line Items] | ' | ' | ' | ' |
Current benefit | ' | $12 | ' | $211 |
Deferred benefit | 12,554 | 7,800 | 36,792 | 11,235 |
Benefit from income taxes | $12,554 | $7,812 | $36,792 | $11,446 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Difference Between Customary Rate and Effective Tax Rate on Income Before Income Taxes Due (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Line Items] | ' | ' | ' | ' |
Tax at statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
Tax effect of: | ' | ' | ' | ' |
Nondeductible stock-based compensation | -0.60% | -18.00% | -1.10% | -5.10% |
State income taxes, net of federal benefit | -0.30% | -0.60% | 0.60% | 1.00% |
Other | 0.30% | -1.30% | -0.10% | -0.40% |
Effective tax rate | 34.40% | 15.10% | 34.40% | 30.50% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Financial Assets and Liabilities at Fair Value (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Liabilities measured at fair value on a recurring basis: | ' |
Derivative financial instruments | $300 |
Fair Value, Measurements, Recurring | ' |
Assets measured at fair value on a recurring basis: | ' |
Cash held in bank accounts | 228,353 |
Derivative financial instruments | 1,820 |
Total assets | 230,173 |
Liabilities measured at fair value on a recurring basis: | ' |
Derivative financial instruments | 2,131 |
Fair Value, Measurements, Recurring | Level 1 | ' |
Assets measured at fair value on a recurring basis: | ' |
Cash held in bank accounts | 228,353 |
Total assets | 228,353 |
Liabilities measured at fair value on a recurring basis: | ' |
Derivative financial instruments | ' |
Fair Value, Measurements, Recurring | Level 2 | ' |
Assets measured at fair value on a recurring basis: | ' |
Derivative financial instruments | 1,820 |
Total assets | 1,820 |
Liabilities measured at fair value on a recurring basis: | ' |
Derivative financial instruments | $2,131 |
Recovered_Sheet3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Changes in Fair Value Level 2 Assets (Liabilities) of Derivative Financial Instruments (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Balance at beginning of period | $3,524 | $11,651 |
Purchases and settlements (net) | 3,560 | -1,641 |
Realized gains (losses) included in other income (expenses) | -3,560 | 1,641 |
Unrealized gains (losses) included in other income (expenses) | -3,835 | -11,962 |
Balance at end of period | ($311) | ($311) |
Recovered_Sheet4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Carrying Amounts and Estimated Fair Value of Other Financial Instruments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-term debt, including current portion, Carrying Value | $883,897 | $1,324,383 |
Long-term debt, including current portion, Fair Value | $994,186 | $1,382,000 |
Recovered_Sheet5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Line Items] | ' | ' | ' | ' |
Net Loss From Continuing Operations | ($24,034) | ($44,212) | ($70,082) | ($26,085) |
Net Income From Discontinued Operations | ' | 13,763 | 148,609 | 4,176 |
Basic Net Loss Attributable to Common Stock, Shares | 46,570 | 46,443 | 46,684 | 46,414 |
Diluted Net Loss Attributable to Common Stock, Shares | 46,570 | 46,443 | 46,684 | 46,414 |
Basic Net Loss From Continuing Operations Attributable to Common Stock, Per Share | ($0.52) | ($0.95) | ($1.45) | ($0.56) |
Diluted Net Loss From Continuing Operations Attributable to Common Stock, Per Share | ($0.52) | ($0.95) | ($1.45) | ($0.56) |
Basic Net Income From Discontinued Operations Attributable to Common Stock, Per Share | ' | $0.29 | $3.08 | $0.09 |
Diluted Net Income From Discontinued Operations Attributable to Common Stock, Per Share | ' | $0.29 | $3.08 | $0.09 |
Continuing Operations | ' | ' | ' | ' |
Earnings Per Share [Line Items] | ' | ' | ' | ' |
Net Loss From Continuing Operations | -24,034 | -44,212 | -70,082 | -26,085 |
(Income) Loss Allocable to Unvested Stock Grants | ' | ' | 2,254 | ' |
Basic Net Loss Attributable to Common Stock | -24,034 | -44,212 | -67,828 | -26,085 |
Effect of Dilutive Securities: Stock Options | ' | ' | ' | ' |
Effect of Dilutive Securities: Performance Stock Units | ' | ' | ' | ' |
Diluted Net Loss Attributable to Common Stock | -24,034 | -44,212 | -67,828 | -26,085 |
Basic Net Loss Attributable to Common Stock, Shares | 46,570 | 46,443 | 46,684 | 46,414 |
Effect of Dilutive Securities: Stock Options, Shares | ' | ' | ' | ' |
Effect of Dilutive Securities: Performance Stock Units, Shares | ' | ' | ' | ' |
Diluted Net Loss Attributable to Common Stock, Shares | 46,570 | 46,443 | 46,684 | 46,414 |
Basic Net Loss From Continuing Operations Attributable to Common Stock, Per Share | ($0.52) | ($0.95) | ($1.45) | ($0.56) |
Diluted Net Loss From Continuing Operations Attributable to Common Stock, Per Share | ($0.52) | ($0.95) | ($1.45) | ($0.56) |
Discontinued Operations | ' | ' | ' | ' |
Earnings Per Share [Line Items] | ' | ' | ' | ' |
Net Income From Discontinued Operations | ' | 13,763 | 148,609 | 4,176 |
(Income) Loss Allocable to Unvested Stock Grants | ' | ' | -4,782 | ' |
Basic Net Loss Attributable to Common Stock | ' | 13,763 | 143,827 | 4,176 |
Effect of Dilutive Securities: Stock Options | ' | ' | ' | ' |
Effect of Dilutive Securities: Performance Stock Units | ' | ' | ' | ' |
Diluted Net Loss Attributable to Common Stock | ' | $13,763 | $143,827 | $4,176 |
Basic Net Loss Attributable to Common Stock, Shares | ' | 46,443 | 46,684 | 46,414 |
Effect of Dilutive Securities: Stock Options, Shares | ' | ' | ' | ' |
Effect of Dilutive Securities: Performance Stock Units, Shares | ' | ' | ' | ' |
Diluted Net Loss Attributable to Common Stock, Shares | ' | 46,443 | 46,684 | 46,414 |
Basic Net Income From Discontinued Operations Attributable to Common Stock, Per Share | ' | $0.29 | $3.08 | $0.09 |
Diluted Net Income From Discontinued Operations Attributable to Common Stock, Per Share | ' | $0.29 | $3.08 | $0.09 |
Recovered_Sheet6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Weighted Average Shares of Unvested Restricted Stock (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Unvested restricted stock | 1,520 | 1,717 | 1,552 | 1,728 |
Recovered_Sheet7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Common Stock Stock Options Excluded as Anti-Dilutive from Determination of Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stock Options | ' | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Weighted average anti-dilutive stock options | 115 | 157 | 135 | 172 |
Weighted average exercise price per share | $32.90 | $38.36 | $32.90 | $37.64 |
Performance Stock Units | ' | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Weighted average performance share units | 91,000 | ' | 56,000 | ' |
Weighted average grant date fair value per unit | 21.19 | ' | 21.15 | ' |
Recovered_Sheet8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash Payments Made for Interest and Income Taxes (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Payments: | ' | ' |
Interest payments | $44,228 | $36,749 |
Income tax payments (refunds) | $768 | ($58) |
Recovered_Sheet9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | 14-May-13 | Dec. 31, 2012 | |
Jurisdictions | ||||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Impairment charges related to oil and gas properties | ' | ' | $700,000 | $5,400,000 | ' | ' |
Impairment charges for unevaluated properties | 3,000,000 | 1,400,000 | 14,900,000 | 2,700,000 | ' | ' |
Sale price of discontinued properties | ' | ' | ' | ' | 823,700,000 | ' |
Realized gain on discontinued properties, net of taxes | ' | ' | 230,600,000 | ' | ' | ' |
Realized gains (losses) on oil price swaps | 3,600,000 | 3,300,000 | 1,600,000 | 4,700,000 | ' | ' |
Derivative financial instrument - Current Asset | ' | ' | ' | ' | ' | 11,651,000 |
Derivative financial instrument - Net Liability | 300,000 | ' | 300,000 | ' | ' | ' |
Derivative financial instrument - Long Term Asset | 1,820,000 | ' | 1,820,000 | ' | ' | ' |
Derivative financial instrument - Current Liability | 2,131,000 | ' | 2,131,000 | ' | ' | ' |
Unrealized gain (loss) from derivatives | -3,835,000 | -11,112,000 | -11,962,000 | 13,498,000 | ' | ' |
Stock-based compensation expense recognized | ' | ' | 9,561,000 | 10,189,000 | ' | ' |
Customary rate | 35.00% | 35.00% | 35.00% | 35.00% | ' | ' |
State jurisdictions currently under review | ' | ' | 2 | ' | ' | ' |
Shares of unvested restricted stock outstanding | 1,519,889 | ' | 1,519,889 | ' | ' | 1,960,835 |
Interest costs, capitalized during period | 700,000 | 5,900,000 | 4,400,000 | 16,500,000 | ' | ' |
Stock Options | ' | ' | ' | ' | ' | ' |
Operations And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Options Outstanding | 115,150 | ' | 115,150 | ' | ' | ' |
Weighted average exercise price | $32.90 | ' | $32.90 | ' | ' | ' |
Unrecognized compensation cost | 0 | ' | 0 | ' | ' | ' |
Number of option, Exercised | ' | ' | 0 | 0 | ' | ' |
Restricted Stock | ' | ' | ' | ' | ' | ' |
Operations And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | 12,000,000 | ' | 12,000,000 | ' | ' | ' |
Shares of unvested restricted stock outstanding | 1,519,889 | ' | 1,519,889 | ' | ' | ' |
Weighted average grant date fair value of restricted stock grants per share | $24.02 | ' | $24.02 | ' | ' | ' |
Period in which compensation cost expected to be recognized | ' | ' | '1 year 10 months 24 days | ' | ' | ' |
Performance Stock Units | ' | ' | ' | ' | ' | ' |
Operations And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | 2,900,000 | ' | 2,900,000 | ' | ' | ' |
Period in which compensation cost expected to be recognized | ' | ' | '1 year 7 months 6 days | ' | ' | ' |
Number of performance share units, outstanding | ' | ' | 249,302 | ' | ' | ' |
Grant date fair value of share units, per unit | ' | ' | $21.19 | ' | ' | ' |
Performance Multiplier, minimum | ' | ' | 0.00% | ' | ' | ' |
Performance Multiplier, maximum | ' | ' | 300.00% | ' | ' | ' |
General and Administrative Expense | ' | ' | ' | ' | ' | ' |
Operations And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense recognized | 3,100,000 | 3,300,000 | 9,600,000 | 10,200,000 | ' | ' |
Common Stock Marketable Securities | ' | ' | ' | ' | ' | ' |
Operations And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Shares of Stone Energy Corporation common stock held by company | ' | ' | ' | ' | ' | 600,000 |
Shares of Stone Energy Corporation common stock sold by Company | ' | ' | ' | 1,206,000 | ' | ' |
Proceeds from sale of Stone Energy Corporation common stock available for sale | ' | ' | 13,400,000 | 37,700,000 | ' | ' |
Realized gain on available-for-sale securities before income tax | ' | ' | 7,900,000 | 26,600,000 | ' | ' |
Cost basis of Stone Energy Corporation common stock sold | $5,500,000 | ' | $5,500,000 | ' | ' | ' |
Recovered_Sheet10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income (loss) | ($24,034) | ($30,449) | $78,527 | ($21,909) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Realized gains on marketable securities reclassified to gain on sale of marketable securities, net of a benefit from income taxes of $2,757 in 2013 and $9,318 in 2012 | ' | ' | -5,120 | -17,303 |
Unrealized gain from derivatives, net of a benefit from income taxes of $161 in 2012 | ' | ' | ' | -298 |
Unrealized gains (losses) on marketable securities, net of provision for (benefit from) income taxes of $- and $377 in 2013 and $(46) and $1,797 in 2012 | ' | -86 | 702 | 3,337 |
Total comprehensive income (loss) | ($24,034) | ($30,535) | $74,109 | ($36,173) |
Recovered_Sheet11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Comprehensive Income (Loss) (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Benefit from income taxes on realized gains on marketable securities reclassified to gain on sale of marketable securities | ' | ' | ($2,757) | ($9,318) |
Benefit from income taxes on unrealized gain from derivatives | ' | ' | ' | -161 |
Provision for (benefit from) income taxes on unrealized gains (losses) on marketable securities | ' | ($46) | $377 | $1,797 |
Recovered_Sheet12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accumulated Other Comprehensive Income, Net of Income Taxes (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Beginning Balance, Marketable Securities | ' | $4,418 | ' |
Changes in value, Marketable Securities | ' | 702 | ' |
Reclassification to earnings, Marketable Securities | ' | -5,120 | -17,303 |
Ending Balance, Marketable Securities | ' | ' | ' |
STOCKHOLDERS_EQUITY_Additional
STOCKHOLDERS' EQUITY - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | 31-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | |
Dividends per common share | $0.13 | $0.13 | $0.13 | $0.25 |
Dividends payable, date declared | 22-Aug-13 | 15-May-13 | ' | ' |
Dividends payable, date of record | 6-Sep-13 | 31-May-13 | ' | ' |
Approved amount for open market repurchase of common stock | ' | $100,000,000 | ' | ' |
Dividend paid | ' | ' | ' | 12,000,000 |
Number of Stock Purchased Under Open Market | ' | ' | 631,096 | 631,096 |
Stock Purchased Under Open Market Amount | ' | ' | $9,232,000 | $9,232,000 |
LONGTERM_DEBT_LongTerm_Debt_De
LONG-TERM DEBT - Long-Term Debt (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $883,897 | $1,324,383 |
Less Current Portion of Long-term Debt | -195,637 | ' |
Long-term Debt | 688,260 | 1,324,383 |
Bank credit facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | ' | ' |
8 3/8% Senior Notes due 2017 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 295,637 | ' |
Less Current Portion of Long-term Debt | -195,637 | ' |
7 3/4% Senior Notes due 2019 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 300,000 | ' |
9 1/2% Senior Notes due 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $288,260 | ' |
LONGTERM_DEBT_Additional_Infor
LONG-TERM DEBT - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 15, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 05, 2013 | |
Bank credit facility | Bank credit facility | Bank credit facility | 8 3/8% Senior Notes due 2017 | 8 3/8% Senior Notes due 2017 | 7 3/4% Senior Notes due 2019 | 9 1/2% Senior Notes due 2020 | 9 1/2% Senior Notes due 2020 | |||
Minimum | Maximum | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank credit facility | ' | ' | $850,000,000 | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility commitment term (in years) | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' |
Maturity of credit facility | ' | ' | 30-Nov-15 | ' | ' | ' | ' | ' | ' | ' |
Borrowing base | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' |
Availability of borrowing base | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' |
Spread rate over LIBOR for interest rate on credit facility | ' | ' | ' | 1.75% | 2.75% | ' | ' | ' | ' | ' |
Stated percentage over federal funds rate to calculate base rate | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' |
Stated percentage over 30 day LIBOR to calculate base rate | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' |
Minimum spread rate over base rate for interest rate on credit facility | ' | ' | 0.75% | ' | ' | ' | ' | ' | ' | ' |
Maximum spread rate over base rate for interest rate on credit facility | ' | ' | 1.75% | ' | ' | ' | ' | ' | ' | ' |
Commitment fee on unused borrowing base | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' |
Face amount of senior note | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 |
Interest rate on senior notes | ' | ' | ' | ' | ' | 8.38% | ' | 7.75% | 9.50% | ' |
Maturity of senior notes | ' | ' | ' | ' | ' | 15-Oct-17 | ' | 1-Apr-19 | 15-Jun-20 | ' |
Outstanding senior notes | ' | ' | ' | ' | ' | 297,800,000 | ' | 300,000,000 | 300,000,000 | ' |
Principal amount of senior note repurchased | ' | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' |
Debt instrument repurchased as percentage of par value | ' | ' | ' | ' | ' | 103.30% | ' | ' | ' | ' |
Debt instrument date of redemption notice | ' | ' | ' | ' | ' | 13-Sep-13 | ' | ' | ' | ' |
Debt instrument date of actual redemption | ' | ' | ' | ' | ' | ' | 15-Oct-13 | ' | ' | ' |
Debt instrument redemption value, percentage | ' | ' | ' | ' | ' | ' | 104.20% | ' | ' | ' |
Ownership percentage of guarantor subsidiary | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Repayments of Long-term Debt | 537,225,000 | 390,000,000 | ' | ' | ' | ' | 310,200,000 | ' | ' | ' |
Cash on hand for debt redemption | ' | ' | ' | ' | ' | ' | 210,200,000 | ' | ' | ' |
Gains (Losses) on Extinguishment of Debt | ' | ' | ' | ' | ' | 17,900,000 | ' | ' | ' | ' |
Reclassified as short term debt | $195,637,000 | ' | ' | ' | ' | $195,637,000 | ' | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Commitments And Contingencies [Line Items] | ' | ' |
Contract term related to drilling rigs | ' | 'Up to three years |
Commitments for contracted drilling services | $50.30 | $50.30 |
Natural gas transportation and treating agreements | ' | 'Through July 2019 |
Maximum commitments under natural gas transportation and treating agreements | 21.1 | 21.1 |
Accrued costs for Joint Interest Owner Settlement | $2 | ' |