Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 24, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CRK | ||
Entity Registrant Name | COMSTOCK RESOURCES INC | ||
Entity Central Index Key | 23,194 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 48.4 | ||
Entity Common Stock, Shares Outstanding | 15,195,043 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and Cash Equivalents | $ 65,904 | $ 134,006 |
Accounts Receivable: | ||
Oil and gas sales | 19,339 | 15,241 |
Joint interest operations | 3,105 | 3,552 |
Derivative Financial Instruments | 1,446 | |
Other Current Assets | 1,824 | 1,993 |
Total current assets | 90,172 | 156,238 |
Property and Equipment: | ||
Unevaluated oil and gas properties | 84,144 | |
Oil and gas properties, successful efforts method | 3,797,101 | 4,332,222 |
Other | 19,590 | 19,521 |
Accumulated depreciation, depletion and amortization | (3,018,029) | (3,397,467) |
Net property and equipment | 798,662 | 1,038,420 |
Other Assets | 1,040 | 1,192 |
Total Assets | 889,874 | 1,195,850 |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
Accounts Payable | 45,311 | 57,276 |
Derivative Financial Instruments | 6,030 | |
Accrued Expenses | 40,366 | 38,444 |
Total current liabilities | 91,707 | 95,720 |
Long-term Debt | 1,044,506 | 1,249,330 |
Deferred Income Taxes Payable | 9,126 | 1,965 |
Reserve for Future Abandonment Costs | 15,804 | 20,093 |
Total liabilities | 1,161,143 | 1,367,108 |
Commitments and Contingencies | ||
Stockholders' Equity (Deficit): | ||
Common stock—$0.50 par, 75,000,000 shares authorized, 9,544,035 and 13,937,627 shares issued and outstanding at December 31, 2015 and 2016, respectively | 6,969 | 4,772 |
Common stock warrants | 5,672 | |
Additional paid-in capital | 531,924 | 504,670 |
Accumulated deficit | (815,834) | (680,700) |
Total stockholders' deficit | (271,269) | (171,258) |
Total liabilities and stockholders' deficit | $ 889,874 | $ 1,195,850 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 13,937,627 | 9,544,035 |
Common stock, shares outstanding | 13,937,627 | 9,544,035 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Natural gas sales | $ 122,623 | $ 109,753 | $ 165,461 |
Oil sales | 53,083 | 142,669 | 389,770 |
Total oil and gas sales | 175,706 | 252,422 | 555,231 |
Operating expenses: | |||
Production taxes | 4,933 | 10,286 | 23,797 |
Gathering and transportation | 15,824 | 14,298 | 12,897 |
Lease operating | 47,696 | 64,502 | 60,283 |
Exploration | 84,144 | 70,694 | 19,403 |
Depreciation, depletion and amortization | 141,487 | 321,323 | 378,275 |
General and administrative, net | 23,963 | 23,541 | 32,379 |
Impairment of oil and gas properties | 27,134 | 801,347 | 60,268 |
Loss on sale of oil and gas properties | 14,315 | 112,085 | |
Total operating expenses | 359,496 | 1,418,076 | 587,302 |
Operating loss | (183,790) | (1,165,654) | (32,071) |
Other income (expenses): | |||
Gain (loss) from derivative financial instruments | (5,356) | 2,676 | 8,175 |
Net gain on extinguishment of debt | 189,052 | 78,741 | |
Interest expense | (128,743) | (118,592) | (58,631) |
Other income | 872 | 1,275 | 727 |
Total other income (expenses) | 55,825 | (35,900) | (49,729) |
Loss before income taxes | (127,965) | (1,201,554) | (81,800) |
Benefit from (provision for) income taxes | (7,169) | 154,445 | 24,689 |
Net loss | $ (135,134) | $ (1,047,109) | $ (57,111) |
Net loss per share – basic and diluted | $ (11.52) | $ (113.53) | $ (6.20) |
Dividends per common share | $ 2.50 | ||
Basic and diluted weighted average shares outstanding | 11,729 | 9,223 | 9,309 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Total | Common Stock | Common Stock Warrants | Additional Paid-in Capital | Accumulated Earnings (Deficit) |
Beginning Balance at Dec. 31, 2013 | $ 952,005,000 | $ 4,768,000 | $ 499,888,000 | $ 447,349,000 | |
Beginning Balance, Shares at Dec. 31, 2013 | 9,536,000 | ||||
Stock-based compensation | 10,697,000 | $ 31,000 | 10,666,000 | ||
Stock-based compensation, Shares | 62,000 | ||||
Tax withholdings related to equity awards | (2,349,000) | $ (13,000) | (2,336,000) | ||
Tax withholdings related to equity awards, Shares | (26,000) | ||||
Taxes related to equity award vesting | (1,055,000) | (1,055,000) | |||
Repurchases of common stock | (8,086,000) | $ (100,000) | (7,986,000) | ||
Repurchases of common stock, Shares | (200,000) | ||||
Net loss | (57,111,000) | (57,111,000) | |||
Dividends paid | (23,829,000) | (23,829,000) | |||
Ending Balance at Dec. 31, 2014 | 870,272,000 | $ 4,686,000 | 499,177,000 | 366,409,000 | |
Ending Balance, Shares at Dec. 31, 2014 | 9,372,000 | ||||
Stock-based compensation | 8,149,000 | $ 94,000 | 8,055,000 | ||
Stock-based compensation, Shares | 188,000 | ||||
Tax withholdings related to equity awards | (526,000) | $ (8,000) | (518,000) | ||
Tax withholdings related to equity awards, Shares | (16,000) | ||||
Taxes related to equity award vesting | (2,044,000) | (2,044,000) | |||
Net loss | (1,047,109,000) | (1,047,109,000) | |||
Ending Balance at Dec. 31, 2015 | (171,258,000) | $ 4,772,000 | 504,670,000 | (680,700,000) | |
Ending Balance, Shares at Dec. 31, 2015 | 9,544,000 | ||||
Stock-based compensation | 4,660,000 | $ 116,000 | 4,544,000 | ||
Stock-based compensation, Shares | 232,000 | ||||
Tax withholdings related to equity awards | (313,000) | $ (20,000) | (293,000) | ||
Tax withholdings related to equity awards, Shares | (41,000) | ||||
Taxes related to equity award vesting | 0 | ||||
Common stock issued for debt conversion | 1,639,000 | $ 88,000 | 1,551,000 | ||
Common stock issued for debt conversion, Shares | 176,000 | ||||
Common stock issued in exchange for debt | 13,603,000 | $ 1,385,000 | 12,218,000 | ||
Common stock issued in exchange for debt, Shares | 2,771,000 | ||||
Common stock warrants issued | 15,623,000 | $ 15,623,000 | |||
Common stock warrants exercised | $ 13,000 | $ 628,000 | (9,951,000) | 9,336,000 | |
Common stock warrants exercised, Shares | 1,255,462 | 1,256,000 | |||
Stock issuance costs | $ (102,000) | (102,000) | |||
Net loss | (135,134,000) | (135,134,000) | |||
Ending Balance at Dec. 31, 2016 | $ (271,269,000) | $ 6,969,000 | $ 5,672,000 | $ 531,924,000 | $ (815,834,000) |
Ending Balance, Shares at Dec. 31, 2016 | 13,938,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (135,134,000) | $ (1,047,109,000) | $ (57,111,000) |
Adjustments to reconcile net loss to net cash provided by(used for) operating activities: | |||
Loss on sale of oil and gas properties | 14,315,000 | 112,085,000 | |
Deferred income taxes | 7,105,000 | (155,249,000) | (24,677,000) |
Dry hole costs, exploratory lease impairments and other exploration costs | 84,144,000 | 70,694,000 | 19,003,000 |
Impairment of oil and gas properties | 27,134,000 | 801,347,000 | 60,268,000 |
Depreciation, depletion and amortization | 141,487,000 | 321,323,000 | 378,275,000 |
(Gain) loss on derivative financial instruments | 5,356,000 | (2,676,000) | (8,175,000) |
Cash settlements of derivative financial instruments | 2,120,000 | 1,230,000 | 9,145,000 |
Net gain on extinguishment of debt | (189,052,000) | (78,741,000) | |
Amortization of debt discount, premium and issuance costs | 17,788,000 | 5,144,000 | 4,097,000 |
Interest paid in-kind | 11,860,000 | ||
Stock-based compensation | 4,660,000 | 8,149,000 | 10,697,000 |
Taxes related to equity award vesting | 2,044,000 | 1,055,000 | |
Decrease (increase) in accounts receivable | (3,651,000) | 30,248,000 | 2,221,000 |
Decrease (increase) in other current assets | 169,000 | 8,112,000 | (7,366,000) |
Increase (decrease) in accounts payable and accrued expenses | (12,029,000) | (46,515,000) | 13,552,000 |
Net cash provided by (used for) operating activities | (23,728,000) | 30,086,000 | 400,984,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (57,424,000) | (264,210,000) | (634,787,000) |
Proceeds from sales of oil and gas properties | 27,855,000 | 102,485,000 | |
Net cash used for investing activities | (29,569,000) | (161,725,000) | (634,787,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings | 790,000,000 | 370,750,000 | |
Principal payments on debt | (465,000,000) | (100,000,000) | |
Payments to retire debt | (3,397,000) | (42,655,000) | |
Debt and equity issuance costs | (11,108,000) | (16,201,000) | (2,524,000) |
Tax withholdings related to equity awards | (313,000) | (526,000) | (2,349,000) |
Repurchases of common stock | 0 | 0 | (8,086,000) |
Taxes related to equity award vesting | (2,044,000) | (1,055,000) | |
Common stock warrants exercised | 13,000 | ||
Dividends paid | (23,829,000) | ||
Net cash provided by (used for) financing activities | (14,805,000) | 263,574,000 | 232,907,000 |
Net increase (decrease) in cash and cash equivalents | (68,102,000) | 131,935,000 | (896,000) |
Cash and cash equivalents, beginning of the year | 134,006,000 | 2,071,000 | 2,967,000 |
Cash and cash equivalents, end of the year | $ 65,904,000 | $ 134,006,000 | $ 2,071,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Accounting policies used by Comstock Resources, Inc. and subsidiaries reflect oil and natural gas industry practices and conform to accounting principles generally accepted in the United States of America. Basis of Presentation and Principles of Consolidation Comstock Resources, Inc. and its subsidiaries are engaged in oil and natural gas exploration, development and production, and the acquisition of producing oil and natural gas properties. The Company's operations are primarily focused in Texas and Louisiana. The consolidated financial statements include the accounts of Comstock Resources, Inc. and its wholly owned or controlled subsidiaries (collectively, "Comstock" or the "Company"). All significant intercompany accounts and transactions have been eliminated in consolidation. The Company accounts for its undivided interest in oil and gas properties using the proportionate consolidation method, whereby its share of assets, liabilities, revenues and expenses are included in its financial statements. Net loss and comprehensive loss are the same in all periods presented. On July 29, 2016, the Company effected a one for five (1:5) reverse split of its outstanding shares of common stock. All amounts disclosed in these financial statements have been adjusted to give effect to this reverse stock split in all periods. Management of the Company has assessed the Company's financial condition, the current capital markets and its future plans given different scenarios of oil and natural gas prices and believes the Company has adequate liquidity to fund its operations for at least 12 months from the date of issuance of these financial statements, which is the requirement to be considered a going concern under generally accepted accounting principles. Management cannot predict how an extended period of low oil and natural gas prices will affect the Company's future operations and liquidity levels. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. Changes in the future estimated oil and natural gas reserves or the estimated future cash flows attributable to the reserves that are utilized for impairment analyses could have a significant impact on the future results of operations. Concentration of Credit Risk and Accounts Receivable Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents, accounts receivable and derivative financial instruments. The Company places its cash with high credit quality financial institutions and its derivative financial instruments with financial institutions and other firms that management believes have high credit ratings. Substantially all of the Company's accounts receivable are due from either purchasers of oil and gas or participants in oil and gas wells for which the Company serves as the operator. Generally, operators of oil and gas wells have the right to offset future revenues against unpaid charges related to operated wells. Oil and gas sales are generally unsecured. The Company's policy is to assess the collectability of its receivables based upon their age, the credit quality of the purchaser or participant and the potential for revenue offset. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectible. Accordingly, no allowance for doubtful accounts has been provided. Other Current Assets Other current assets at December 31, 2015 and 2016 consist of the following: As of December 31, 2015 2016 (In thousands) Pipe and oil field equipment inventory $ 1,198 $ 1,183 Other 795 641 $ 1,993 $ 1,824 Fair Value Measurements Certain accounts within the Company's consolidated balance sheets are required to be measured at fair value on a recurring basis. These include cash equivalents held in bank accounts and derivative financial instruments in the form of oil and natural gas 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 and cash equivalents valuation is based on Level 1 measurements. The Company's oil and natural gas price swap agreements were 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 December 31, 2016: Carrying Level 1 Level 2 (In thousands) Items measured at fair value on a recurring basis: Assets: Cash and cash equivalents $ 65,904 $ 65,904 $ — Liabilities: Derivative financial instruments $ 6,030 $ — $ 6,030 At December 31, 2016, the Company had As of December 31, 2016, the Company's other financial instruments, comprised solely of its fixed rate debt, had a carrying value of $1.1 billion and a fair value of $1.1 billion. As of December 31, 2015, the Company's fixed rate debt had a carrying value of $1.3 billion and a fair value of $428.8 million. The fair market value of the Company's fixed rate debt was based on quoted prices as of December 31, 2016 and December 31, 2015, a Level 2 measurement. 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. Acquisition costs for proved oil and gas properties, costs of drilling and equipping productive wells, and costs of unsuccessful development wells are capitalized and amortized on an equivalent unit-of-production basis over the life of the remaining related oil and gas reserves. Equivalent units are determined by converting oil to natural gas at the ratio of one barrel of oil for six thousand cubic feet of natural gas. This conversion ratio is not based on the price of oil or natural gas, and there may be a significant difference in price between an equivalent volume of oil versus natural gas. Amortization is calculated at the field level. The estimated future costs of dismantlement, restoration, plugging and abandonment of oil and gas properties and related facilities disposal are capitalized when asset retirement obligations are incurred and amortized as part of depreciation, depletion and amortization expense. The costs of unproved properties which are determined to be productive are transferred to proved oil and gas properties and amortized on an equivalent unit-of-production basis. Exploratory expenses, including geological and geophysical expenses and delay rentals for unevaluated oil and gas properties, are charged to expense as incurred. Unproved oil and gas properties are periodically assessed for impairment on a property by property basis, and any impairment in value is charged to exploration expense. During 2014, 2015 and 2016, impairment charges of $0.5 million, $68.9 million and $84.1 million, respectively, were recognized in exploration expense related to certain leases that the Company no longer expects to drill on. Exploratory drilling costs are initially capitalized as unproved property but charged to expense if and when the well is determined not to have found commercial quantities of proved oil and gas reserves. Exploratory drilling costs are evaluated within a one-year period after the completion of drilling. The Company periodically assesses the need for an impairment of the costs capitalized for its evaluated oil and gas properties on a property basis. If impairment is indicated based on undiscounted expected future cash flows attributable to the property, then a provision for impairment is recognized to the extent that net capitalized costs exceed the estimated fair value of the property. The Company determines the fair values of its oil and gas properties using a discounted cash flow model and proved and risk-adjusted probable reserves. Undrilled acreage is valued based on sales transactions in comparable areas. Significant Level 3 assumptions associated with the calculation of discounted future cash flows included in the cash flow model include management's outlook for oil and natural gas prices, future oil and natural gas production, production costs, capital expenditures, and the total proved and risk-adjusted probable oil and natural gas reserves expected to be recovered. Management's oil and natural gas price outlook is developed based on third-party longer-term price forecasts as of each measurement date. The expected future net cash flows are discounted using an appropriate discount rate in determining a property's fair value. The oil and natural gas prices used for determining asset impairments will generally differ from those used in the standardized measure of discounted future net cash flows because the standardized measure requires the use of an average price based on the first day of each month of the preceding year. In 2016, the Company recognized impairments of $27.1 million on certain of its oil and gas properties, including an impairment of $20.8 million to adjust the carrying value of the Company's South Texas natural gas properties to fair value of $42.5 million when the assets were designated as held for sale in the first quarter of 2016. The fair value of the other properties impaired in 2016 was $21.1 million. In 2015, reductions to management's oil and natural gas price outlook resulted in impairments of $801.3 million of the Company's oil properties in South Texas and Mississippi, and certain of its natural gas properties in Texas and Louisiana. The following table presents the fair value and impairments recorded by the Company in the third quarter and fourth quarter of 2015, as well as the average oil price per barrel and gas price per thousand cubic feet over the life of the properties and the applicable discount rates utilized in the Company's assessments: Fair Value Impairment Management's Price Outlook Annual Oil Gas (In thousands) (Per barrel) (Per Mcf) Impairments recorded at September 30, 2015: Oil properties $330,257 $405,308 $73.70 $4.04 10%-20% Natural gas properties $61,625 $139,406 $75.91 $3.91 10%-20% Impairments recorded at December 31, 2015: Oil properties $3,030 $16,036 $73.48 10%-20% Natural gas properties $123,926 $238,210 $70.76 $3.74 10%-20% In 2014, the Company recognized an impairment of $60.3 million on certain of its oil and gas properties which had a fair value of $18.0 million. The Company's estimates of undiscounted future net cash flows attributable to its oil and gas properties may change in the future. The primary factors that may affect estimates of future cash flows include future adjustments, both positive and negative, to proved and appropriate risk-adjusted probable oil and natural gas reserves, results of future drilling activities, future prices for oil and natural gas, and increases or decreases in production and capital costs. As a result of these changes, there may be further impairments in the carrying values of these or other properties. Other property and equipment consists primarily of gas gathering systems, computer equipment, furniture and fixtures and an airplane which are depreciated over estimated useful lives ranging from three to 31 ½ Other Assets Other assets primarily consist of deferred costs associated with the Company's bank credit facility. These costs are amortized over the life of the bank credit facility on a straight-line basis which approximates the amortization that would be calculated using an effective interest rate method. Accrued Expenses Accrued expenses at December 31, 2015 and 2016 consist of the following: As of December 31, 2015 2016 (In thousands) Accrued interest payable $ 29,075 $ 22,721 Accrued drilling costs 5,306 7,498 Accrued employee compensation 107 6,292 Accrued transportation costs 2,818 2,227 Other 1,138 1,628 $ 38,444 $ 40,366 Reserve for Future Abandonment Costs The Company's asset retirement obligations relate to future plugging and abandonment costs of its oil and gas properties and related facilities disposal. The Company records a liability in the period in which an asset retirement obligation is incurred, in an amount equal to the estimated fair value of the obligation that is capitalized. Thereafter, this liability is accreted up to the final retirement cost. Accretion of the discount is included as part of depreciation, depletion and amortization in the accompanying consolidated statements of operations. The following table summarizes the changes in the Company's total estimated liability: 2015 2016 (In thousands) Reserve for Future Abandonment Costs at beginning of the year $ 14,900 $ 20,093 New wells placed on production 310 3 Changes in estimates and timing 4,927 (553 ) Liabilities settled (89 ) (409 ) Asset divestitures (628 ) (4,268 ) Accretion expense 673 938 Reserve for Future Abandonment Costs at end of the year $ 20,093 $ 15,804 Stock-based Compensation The Company has stock-based employee compensation plans under which stock awards, comprised primarily of restricted stock and performance share units, are issued to employees and non-employee directors. The Company follows the fair value based method in accounting for equity-based compensation. Under the fair value based method, compensation cost is measured at the grant date based on the fair value of the award and is recognized on a straight-line basis over the award vesting period. The income tax effects of vested stock awards are recognized as an adjustment to additional paid-in capital and as a part of cash flows from financing activities. Segment Reporting The Company presently operates in one business segment, the exploration and production of oil and natural gas. Derivative Financial Instruments and Hedging Activities The Company accounts for derivative financial instruments (including derivative instruments embedded in other contracts) as either an asset or liability measured at its fair value. Changes in the fair value of derivatives are recognized currently in earnings unless specific hedge accounting criteria are met. The Company estimates fair value based on a discounted cash flow model. The fair value of derivative contracts that expire in less than one year are recognized as current assets or liabilities. Those that expire in more than one year are recognized as long-term assets or liabilities. If the derivative is designated as a cash flow hedge, changes in fair value are recognized in other comprehensive income until the hedged item is recognized in earnings. Major Purchasers In 2016, the Company had four Revenue Recognition and Gas Balancing Comstock utilizes the sales method of accounting for oil and natural gas revenues whereby revenues are recognized at the time of delivery based on the amount of oil or natural gas sold to purchasers. Revenue is typically recorded in the month of production based on an estimate of the Company's share of volumes produced and prices realized. The amount of oil or natural gas sold may differ from the amount to which the Company is entitled based on its revenue interests in the properties. The Company did not have any significant imbalance positions at December 31, 2015 or 2016. Sales of oil and natural gas generally occur at the wellhead. When sales of oil and gas occur at locations other than the wellhead, the Company accounts for costs incurred to transport the production to the delivery point as gathering and transportation expenses. General and Administrative Expenses General and administrative expenses are reported net of reimbursements of overhead costs that are received from working interest owners of the oil and gas properties operated by the Company of $13.2 million, $13.9 million and $12.4 million in 2014, 2015 and 2016, respectively. Income Taxes The Company accounts for income taxes using the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis, as well as the future tax consequences attributable to the future utilization of existing tax net operating loss and other types of carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that the change in rate is enacted. 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 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 two 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. Unexercised common stock warrants represent the right to convert the warrants into common stock at an exercise price of $0.01 per share. The treasury stock method is used to measure the dilutive effect of unexercised common stock warrants. The shares that would be issuable upon exercise of the conversion rights contains in the Company's convertible debt for each period are based on the if-converted method for computing potentially dilutive shares of common stock that could be issued upon conversion. Basic and diluted earnings per share for 2014, 2015 and 2016 were determined as follows: 2014 2015 2016 Income Shares Per Share Loss Shares Per Share Loss Shares Per Share (In thousands except per share data) Net Loss $ (57,111 ) $ (1,047,109 ) $ (135,134 ) Income Allocable (595 ) — — Basic and Diluted Net Loss $ (57,706 ) 9,309 $ (6.20 ) $ (1,047,109 ) 9,223 $ (113.53 ) $ (135,134 ) 11,729 $ (11.52 ) Basic and diluted per share amounts are the same for the years ended December 31, 2014, 2015, and 2016 due to the net loss reported during each of those years. At December 31, 2014, 2015 and 2016, 241,505, 314,048 and 354,986 shares of unvested 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 included in common stock outstanding were as follows: 2014 2015 2016 (In thousands) Unvested restricted stock 238 293 344 All stock options, unvested PSUs, warrants exercisable into common stock and contingently issuable shares related to the convertible debt that were anti-dilutive to earnings and excluded from weighted average shares used in the computation of earnings per share due to the net loss in each period were as follows: 2014 2015 2016 (In thousands except per share data) Weighted average anti-dilutive stock options 23 20 11 Weighted average exercise price per share $ 164.50 $ 164.75 $ 166.10 Weighted average warrants for common stock — — 337 Weighted average exercise price per share $ — $ — $ 0.01 Weighted average PSUs 100 136 136 Weighted average grant date fair value per unit $ 99.40 $ 35.35 $ 22.17 Weighted average contingently convertible shares — — 11,574 Weighted average conversion price per share $ — $ — $ 12.32 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. Cash payments made for interest and income taxes for the years ended December 31, 2014, 2015 and 2016, respectively, were as follows: 2014 2015 2016 (In thousands) Cash payments for: Interest $ 62,812 $ 94,177 $ 105,449 Income taxes $ 682 $ 77 $ — 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 $10.2 million and $0.9 million in 2014 and 2015, respectively, which reduced interest expense and increased the carrying value of its unevaluated oil and gas properties. The Company did not capitalize interest in 2016. The Company also paid in-kind $11.9 million of interest on its convertible notes in 2016. Recent accounting pronouncements In 2016, the Company adopted ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) " " ' ' In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting |
Acquisitions and Dispositions o
Acquisitions and Dispositions of Oil and Gas Properties | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions of Oil and Gas Properties | (2) Acquisitions and Dispositions of Oil and Gas Properties In January 2016, the Company exchanged certain oil and gas properties with another operator in a non-monetary exchange. Under the exchange, the Company received 3,637 net acres in DeSoto Parish, Louisiana, prospective for the Haynesville shale, including four producing wells (3.5 net). The Company exchanged 2,547 net acres in Atascosa County, Texas, including seven producing wells (5.3 net) for the Haynesville shale properties. The Company recognized a gain of $0.7 million on this transaction which was included in the loss on sale of oil and gas properties for the year ended December 31, 2016. In December 2016, the Company sold certain of its natural gas properties located in South Texas realizing net proceeds of $25.8 million. The Company recognized a loss on the sale of these assets in 2016 totaling $13.4 million and an impairment of $20.8 million in the first quarter of 2016 to adjust the carrying value of these assets to their fair value. The Company also sold certain other oil and gas properties during 2016 for total proceeds of $2.1 million. The Company recognized a loss of $1.6 million on these divestitures. In July 2015, the Company sold its Burleson County, Texas properties for proceeds of $102.5 million, recognizing a net loss on sale of $112.1 million. Results of operations for the properties that were sold in 2015 and 2016 were as follows: Year Ended December 31, 2014 2015 2016 (In thousands) Total oil and gas sales $ 32,984 $ 30,169 $ 7,480 Total operating expenses (1) (47,639 ) (83,275 ) (5,690 ) Operating income (loss) $ (14,655 ) $ (53,106 ) $ 1,790 (1) Includes direct operating expenses, depreciation, depletion and amortization and exploration expense. Excludes interest expense, general and administrative expenses and depreciation, depletion and amortization expense subsequent to the date the assets were designated as held for sale. |
Oil and Gas Producing Activitie
Oil and Gas Producing Activities | 12 Months Ended |
Dec. 31, 2016 | |
Oil And Gas Exploration And Production Industries Disclosures [Abstract] | |
Oil and Gas Producing Activities | (3) Oil and Gas Producing Activities Set forth below is certain information regarding the aggregate capitalized costs of oil and gas properties and costs incurred by the Company for its oil and gas property acquisition, development and exploration activities: Capitalized Costs As of December 31, 2015 2016 (In thousands) Unproved properties $ 84,144 $ — Proved properties: Leasehold costs 982,915 662,022 Wells and related equipment and facilities 3,349,307 3,135,079 Accumulated depreciation depletion and amortization (3,389,786 ) (3,009,236 ) $ 1,026,580 $ 787,865 Costs Incurred For the Years Ended December 31, 2014 2015 2016 (In thousands) Property Acquisitions: Unproved property acquisitions $ 91,960 $ 12,972 $ — Proved property acquisitions 2,400 — — Development costs 440,848 221,265 58,587 Exploration costs 52,080 12,265 — $ 587,288 $ 246,502 $ 58,587 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | (4) Long-term Debt Long-term debt is comprised of the following: As of December 31, 2015 2016 (In thousands) 10% Senior Secured Toggle Notes due 2020: Principal $ — $ 697,195 Discount, net of amortization — (11,955 ) 7¾% Convertible Second Lien PIK Notes due 2019: Principal — 268,432 Accrued interest payable in kind — 6,645 Discount, net of amortization — (61,230 ) 9½% Convertible Second Lien PIK Notes due 2020: Principal — 174,182 Accrued interest payable in kind — 735 Discount, net of amortization — (38,959 ) 10% Senior Secured Notes due 2020: Principal 700,000 2,805 7¾% Senior Notes due 2019: Principal 376,090 17,959 Premium, net of amortization 3,583 118 9½% Senior Notes due 2020: Principal 194,367 4,860 Discount, net of amortization (5,040 ) (98 ) 0 Debt issuance costs, net of amortization (19,670 ) (16,183 ) $ 1,249,330 $ 1,044,506 The premium and discount on the senior notes are being amortized over the lives of the senior notes using the effective interest rate method. Issuance costs are amortized over the lives of the senior notes on a straight-line basis which approximates the amortization that would be calculated using an effective interest rate method. The following table summarizes Comstock's principal amount of debt as of December 31, 2016 by year of maturity: 2017 2018 2019 2020 2021 Thereafter Total (In thousands) 10% Senior Secured Toggle Notes due 2020 $ — $ — $ — $ 697,195 $ — $ — $ 697,195 7¾% Convertible Second Lien PIK Notes due $ — $ — $ 268,432 $ — $ — $ — $ 268,432 9½% Convertible Second Lien PIK Notes due — — — 174,182 — — 174,182 10% Senior Secured Notes due 2020 — — — 2,805 — — 2,805 7¾% Senior Notes due — — 17,959 — — — 17,959 9½% Senior Notes due — — — 4,860 — — 4,860 $ — $ — $ 286,391 $ 879,042 $ — $ — $ 1,165,433 On September 6, 2016, Comstock completed a debt exchange with the holders of approximately 98% of its then outstanding senior notes. Specifically, the Company issued (i) $697.2 million of new 10% Senior Secured Toggle Notes due 2020 and warrants exercisable for 1,917,342 shares of common stock, in exchange for $697.2 million of the Company's 10% Senior Secured Notes due 2020, (ii) $270.6 million of new 7¾% Convertible Second Lien PIK Notes due 2019 in exchange for $270.6 million of the Company's 7¾% Senior Notes due 2019, and (iii) $169.7 million of new 9½% Convertible Second Lien PIK Notes due 2020 in exchange for $169.7 million of the Company's 9½% Senior Notes due 2020. Accrued and unpaid interest on notes tendered in the exchange was paid in cash. Following the exchange, $2.8 million of the 10% Senior Secured Notes, $18.0 million of the 7¾% Senior Notes and $4.9 million of the 9½% Senior Notes remained outstanding. The exchange of the 10% Senior Secured Notes due 2020 for the 10% Senior Secured Toggle Notes due 2020 was accounted for as a modification of debt. Accordingly no gain or loss was recognized on the exchange. The value of the warrants issued to the noteholders on September 6, 2016, a Level 2 measurement, is being amortized to interest expense over the life of the notes. Transaction costs of $4.5 million related to the exchange were recognized in the year ended December 31, 2016 as a reduction to the gain on extinguishment of debt which is reported as a component of other income (loss). The exchange of the 7¾% Senior Notes due 2019 and the 9½% Senior Notes due 2020 for the Convertible Second Lien PIK Notes was accounted for as a debt extinguishment given the substantial difference in the terms of the exchanged notes. A gain of $106.2 million on extinguishment of debt was recognized on this exchange representing the difference between the fair market value of the new convertible notes and the carrying amount of the 7¾% Senior Notes due 2019 and the 9½% Senior Notes due 2020 that were exchanged. Transaction costs of $6.5 million related to these exchanges have been reflected as debt issuance costs which are being amortized to interest expense over the lives of the notes. The Company has determined the fair value of the convertible notes based upon the average trading prices for the notes subsequent to closing of the exchange. This valuation was a Level 2 measurement. Interest on the 10% Senior Secured Toggle Notes is payable on March 15 and September 15, and the notes mature on March 15, 2020. The Company has the option to pay up to $75.0 million of accrued interest by issuing additional notes. To the extent that interest is paid in-kind, the interest rate increases to 12¼% only for that interest payment and would result in an additional $91.9 million of notes outstanding. Interest on the 7¾% Convertible Second Lien PIK Notes is payable on April 1 and October 1, Prior to the completion of the debt exchange, the Company retired $87.5 million in principal amount of the 7¾% Senior Notes and $19.8 million of the 9½% Senior Notes in 2016 in exchange in the aggregate for the issuance of 2,748,403 shares of common stock and $3.5 million in cash. A gain on extinguishment of debt of $89.6 million was recognized on the retirement of the senior notes during 2016 for the difference between the market value of the stock and the net carrying value of the debt. During 2015, the Company acquired $23.9 million in principal amount of the 7¾% Senior Notes and $105.6 million in principal amount of the 9½% Senior Notes for an aggregate purchase price of $42.7 million. The gain of $82.4 million recognized on the purchase of the senior notes and the loss resulting from the write-off of deferred loan costs associated with the Company's prior bank credit facility of $3.7 million are included in the net gain on extinguishment of debt in 2015. Comstock has a $50.0 million revolving credit facility with Bank of Montreal and Bank of America, N.A. that matures on March 4, 2019. As of December 31, 2016, there were no borrowings outstanding under the revolving credit facility. Indebtedness under the revolving credit facility is guaranteed by all of the Company's subsidiaries and is secured by substantially all of Comstock's and its subsidiaries' assets. Borrowings under the revolving credit facility bear interest, at Comstock's option, at either (1) LIBOR plus 2.5% 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 1.5%. A commitment fee of 0.5% per annum is payable quarterly on the unused credit line. The revolving credit facility contains covenants that, among other things, restrict the payment of cash dividends and repurchases of common stock, limit the amount of additional debt that Comstock may incur and limit the Company's ability to make certain loans, investments and divestitures. The only financial covenants are the maintenance of a ratio of current assets, including availability under the revolving credit facility, to current liabilities of at least 1.0 to 1.0 and the maintenance of an asset coverage ratio of proved developed oil and natural gas reserves to the amount outstanding under the revolving credit facility of at least 2.5 to 1.0. The Company was in compliance with these covenants as of December 31, 2016. All of the Company's subsidiaries guarantee the bank credit facility, the 10% Senior Secured Toggle Notes, the 7¾% Convertible Second Lien PIK Notes, the 9½% Convertible Second Lien PIK Notes, and the other outstanding senior notes. The bank credit facility, the 10% Senior Secured Toggle Notes and the convertible notes are secured by liens on substantially all of the Company's and its subsidiaries assets. The allocation of proceeds related to the liens on our assets are governed by intercreditor agreements granting priority to the bank credit facility. Proceeds from liens on the convertible notes are also subject to the priority of the 10% Senior Secured Toggle Notes. The liens that previously secured the 10% Senior Secured Notes that were not tendered for exchange were released and these notes are no longer secured. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (5) Commitments and Contingencies Commitments The Company rents office space and other facilities under noncancelable operating leases. Rent expense for each of the years ended December 31, 2014, 2015 and 2016 was $1.5 million. (In thousands) 2017 $ 1,521 2018 1,560 2019 1,560 2020 1,560 2021 1,560 $ 7,761 As of December 31, 2016, the Company had Contingencies From time to time, the Company 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, results of operations or cash flows and no material amounts are accrued relative to these matters at December 31, 2015 or 2016. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | (6) Stockholders' Equity The authorized capital stock of the Company consists of 75 million shares of common stock, $0.50 par value per share, and 5 million shares of preferred stock, $10.00 par value per share. The preferred stock may be issued in one or more series, and the terms and rights of such stock will be determined by the Board of Directors. There were no shares of preferred stock outstanding at December 31, 2015 or 2016. The Company paid dividends to its common stockholders of $23.8 million in 2014. In December 2016, holders of the Company's convertible notes converted $2.1 million in principal of the notes into 176,175 shares of the Company's common stock. In 2017 through February 24, 2017, holders of the convertible notes converted an additional $9.2 million of principal amount of the notes into 767,353 shares of common stock. In connection with the debt exchange completed on September 6, 2016, the Company issued warrants to acquire 1,917,342 shares of common stock for $0.01 per share. As of December 31, 2016, warrants have been exercised for 1,255,462 shares of common stock, and 661,880 of the warrants remained outstanding. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | (7) Stock-based Compensation The Company grants restricted shares of common stock and performance share units to key employees and directors as part of their compensation under the 2009 Long-term Incentive Plan. Future awards of performance share units, restricted stock grants or other equity awards are available under the stockholder approved 2009 Long-term Incentive Plan for 2,524,523 shares of common stock. During 2014, 2015 and 2016, the Company had $10.7 million, $8.1 million and $4.7 million, respectively, in stock-based compensation expense which is included in general and administrative expenses. The income taxes associated with the vesting of equity awards included in additional paid in capital were $1.1 million and $2.0 million for the years ended December 31, 2014 and 2015, respectively. No income taxes associated with the vesting of equity awards were included in additional paid in capital in 2016. Restricted Stock The fair value of restricted stock grants is amortized over the vesting period, generally one to three A summary of restricted stock activity for the year ended December 31, 2016 is presented below: Number of Weighted Outstanding at January 1, 2016 314,048 $49.57 Granted 237,187 $5.46 Vested (191,004 ) $58.80 Forfeitures (5,245 ) $32.07 Outstanding at December 31, 2016 354,986 $15.60 The per share weighted average fair value of restricted stock grants in 2014, 2015 and 2016 was $101.20, $26.70 and $5.46, respectively. Total unrecognized compensation cost related to unvested restricted stock of $2.8 million as of December 31, 2016 is expected to be recognized over a period of 1.4 years. The fair value of restricted stock which vested in 2014, 2015 and 2016 was $10.0 million, $3.7 million and $1.3 million, respectively. Performance Share Units The Company issues PSUs as part of its long-term equity incentive compensation. PSU awards can result in the issuance of common stock to the holder if certain performance criteria is met during a performance period. The performance periods consist of one year, two years and three years, respectively. The performance criteria for the PSUs are based on the Company's annualized total stockholder return ("TSR") for the performance period as compared with the TSR of certain peer companies for the performance period. The costs associated with PSUs are recognized as general and administrative expense over the performance periods of the awards. The fair value of PSUs was measured at the grant date using a stochastic process method utilizing the Geometric Brownian Motion Model ("GBM Model"). A stochastic process is a mathematically defined equation that can create a series of outcomes over time. These outcomes are not deterministic in nature, which means that by iterating the equations multiple times, different results will be obtained for those iterations. In the case of the Company's PSUs, the Company cannot predict with certainty the path its stock price or the stock prices of its peers will take over the future performance periods. By using a stochastic simulation, the Company can create multiple prospective total return pathways, statistically analyze these simulations, and ultimately make inferences to the most likely path the total return will take. As such, because future stock returns are stochastic, or probabilistic with some direction in nature, the stochastic method, specifically the GBM Model, is deemed an appropriate method by which to determine the fair value of the PSUs. Significant assumptions used in this simulation include the Company's expected volatility and a risk-free interest rate based on U.S. Treasury yield curve rates with maturities consistent with the vesting periods, as well as the volatilities for each of the Company's peers. Assumptions regarding volatility included the historical volatility of each company's stock and the implied volatilities of publicly traded stock options. Significant assumptions use to value PSUs in 2014, 2015 and 2016 included: For the Years Ended December 31, 2014 2015 2016 Risk free interest rate 0.6% 1.1% 0.9% Range of implied volatility: Minimum 38% 37% 47% Maximum 70% 65% 92% In 2014, the Company granted 37,792 PSUs with a grant date fair value of $3.7 million, or $99.05 per unit. In 2015, the Company granted 94,250 PSUs with a grant date fair value of $0.7 million, or $7.30 per unit. In 2016, the Company granted 60,015 PSUs with a grant date fair value of $0.4 million, or $7.00 per unit. The fair value of PSUs is amortized over the vesting period of one to three years, using the straight-line method. Total compensation expense recognized for PSUs was $3.4 million, $2.1 million and $1.3 million for the years ended December 31, 2014, 2015 and 2016, respectively. A summary of PSU activity for the year ended December 31, 2016 is presented below: Number of Weighted Outstanding at January 1, 2016 133,931 $45.27 Granted 60,015 $7.00 Earned (7,540 ) $21.90 Unearned or forfeited (51,756 ) $64.40 Outstanding at December 31, 2016 134,650 $22.17 The final number of shares of common stock issued may vary depending upon the performance multiplier, and can result in the issuance of zero to 269,300 shares of common stock based on the achieved performance ranges from zero to two. As of December 31, 2016, there was $1.1 million of total unrecognized expense related to PSUs, which is being amortized through December 31, 2017. Stock Options The Company had no employee stock options outstanding at December 31, 2016. The following table summarizes information related to stock option activity under the Company's 2009 Long-term Incentive Plan for the year ended December 31, 2016: Number of Weighted Price Outstanding at January 1, 2016 11,730 $166.10 Expired (11,730 ) $166.10 Outstanding at December 31, 2016 — $— |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plan | (8) Retirement Plan The Company has a 401(k) profit sharing plan which covers all of its employees. At its discretion, Comstock may match the employees' contributions to the plan. Matching contributions to the plan were $834,000, $888,000 and $758,000 for the years ended December 31, 2014, 2015 and 2016, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes The following is an analysis of the consolidated income tax provision (benefit): For the Years Ended December 31, 2014 2015 2016 (In thousands) Current - Federal $ — $ — $ — - State (12 ) 804 64 Deferred - Federal (27,652 ) (149,171 ) — - State 2,975 (6,078 ) 7,105 $ (24,689 ) $ (154,445 ) $ 7,169 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 caused by non-deductible stock compensation, state taxes and the establishment of a valuation allowance on deferred taxes. The impact of these items varies based upon the Company's full year loss and the jurisdictions that are expected to generate the projected losses. In recording deferred income tax assets, the Company considers whether it is more likely than not that some portion or all of its deferred income tax assets will be realized in the future. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those deferred income tax assets would be deductible. The Company believes that after considering all the available objective evidence, historical and prospective, with greater weight given to historical evidence, management is not able to determine that it is more likely than not that all of its deferred tax assets will be realized. As a result, the Company established valuation allowances for its deferred tax assets and U.S. federal and state net operating loss carryforwards that are not expected to be utilized due to the uncertainty of generating taxable income prior to the expiration of the carryforward periods. The valuation allowances recognized and the related tax effect for 2014, 2015 and 2016 are as follows: For the Years Ended December 31, 2014 2015 2016 (In thousands) Federal taxes: Valuation allowance $ — $ 775,304 $ 132,482 Tax effect — 271,356 46,369 State taxes: Valuation allowance 213,066 264,188 434,561 Tax effect 11,099 12,228 23,521 The Company will continue to assess the valuation allowances against deferred tax assets considering all available information obtained in future periods. The difference between the Company's customary rate of 35% and the effective tax rate on losses is due to the following: For the Years Ended December 31, 2014 2015 2016 (In thousands) Tax benefit at statutory rate $ (28,630 ) $ (420,544 ) $ (44,788 ) Tax effect of: Nondeductible compensation 756 539 73 State taxes, net of federal tax benefit (8,121 ) (18,218 ) (18,860 ) Valuation allowance on deferred tax assets 11,099 283,585 69,890 Other 207 193 854 Total $ (24,689 ) $ (154,445 ) $ 7,169 For the Years Ended December 31, 2014 2015 2016 Statutory rate 35.0 % 35.0 % 35.0 % Tax effect of: Nondeductible compensation (0.9 ) — (0.1 ) State taxes, net of federal tax benefit 9.9 1.4 14.7 Valuation allowance on deferred tax assets (13.6 ) (23.5 ) (54.6 ) Other (0.2 ) — (0.6 ) Effective tax rate 30.2 % 12.9 % (5.6 %) The tax effects of significant temporary differences representing the net deferred tax liability at December 31, 2015 and 2016 were as follows: 2015 2016 (In thousands) Deferred tax assets: Property and equipment $ 58,993 $ 15,164 Net operating loss carryforwards 255,571 339,914 Alternative minimum tax carryforward 20,435 20,435 Alternative minimum tax carryforward Unrealized hedging loss — 2,110 Gain on debt exchange — 20,194 Other 7,895 8,523 342,894 406,340 Valuation allowance on deferred tax assets (330,372 ) (398,120 ) Deferred tax assets 12,522 8,220 Deferred tax liabilities: Property and equipment (9,047 ) (9,203 ) Unrealized hedging income (506 ) — Original issue discount — (4,025 ) Other (4,934 ) (4,118 ) Deferred tax liabilities (14,487 ) (17,346 ) Net deferred tax liability $ (1,965 ) $ (9,126 ) At December 31, 2016, Comstock had the following carryforwards available to reduce future income taxes: Types of Carryforward Years of Amount (In thousands) Net operating loss - U.S. federal 2017 – 2036 $ 745,190 Net operating loss – state taxes 2020 – 2036 $ 1,521,847 Alternative minimum tax credits Unlimited $ 20,435 At December 31, 2016, the Company had $745.2 million in U.S. federal net operating loss carryforwards and $1.5 billion in certain state net operating loss carryforwards. A valuation allowance has been established against all of the federal loss carryforwards and $1.4 billion of the state loss carryforwards due to the uncertainty of generating future taxable income prior to the expiration of the net operating loss carryforward periods. Future use of the Company's federal and state net operating loss carryforwards may be limited in the event that a cumulative change in the ownership of Comstock's common stock by more than 50% occurs within a three-year period. Such a change in ownership would result in a substantial portion of Comstock's net operating loss carryforwards being eliminated or becoming restricted, and the Company would need to recognize additional valuation allowances reflecting the restricted use of the net operating loss carryforwards in the period when such an ownership change occurred. It is highly likely that a change in ownership that would result from conversion of the Company’s convertible notes would result in limits on the future use of its net operating loss carryforwards. The Company's federal income tax returns for the years subsequent to December 31, 2012 remain subject to examination. The Company's income tax returns in major state income tax jurisdictions remain subject to examination for the year ended December 31, 2008 and for various periods subsequent to December 31, 2010. A state tax return in one state jurisdiction is currently under review. The Company has evaluated the preliminary findings in this jurisdiction and believes it is more likely than not that the ultimate resolution of these matters will not have a material impact on its financial statements. The Company currently believes that its significant filing positions are highly certain and that all of its other significant income tax filing positions and deductions would be sustained upon 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. Interest and penalties resulting from audits by tax authorities have been immaterial and are included in the provision for income taxes in the consolidated statements of operations. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | (10) 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. 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. 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. During 2014, the Company hedged 2,438,000 barrels of its oil production at an average NYMEX West Texas Intermediate oil price of $96.56 per barrel. The Company hedged 1,800,000 MMBtus The Company had the following outstanding derivative financial instruments used for oil and natural gas price risk management: Commodity and Derivative Type Weighted-Average Contract Volume Contract Period December 31, 2015: Natural Gas Swap Agreements $3.20 per MMBtu 1,800,000 2016 December 31, 2016: Natural Gas Swap Agreements $3.37 per MMBtu 23,400,000 2017 In 2017, through February 24, 2017, the Company has entered into additional natural gas price swap agreements which increased the 2017 natural gas volumes hedged to 25,875,000 MMBtus at an average fixed NYMEX price at $3.38 per MMBtu. None of the derivative contracts were designated as cash flow hedges. The Company recognizes cash settlements and changes in the fair value of its derivative financial instruments as a single component of other income (expenses). The Company recognized a loss of $8.2 million, a gain of $2.7 million and a loss of $5.4 million from its derivative financial instruments for the years ended December 31, 2014, 2015 and 2016, respectively. Cash settlements received on derivative financial instruments were $9.1 million, $1.2 million and $2.1 million for the years ended December 31, 2014, 2015 and 2016, respectively. The estimated fair value and carrying value of the Company's derivative financial instruments, was a current asset of $1.4 million as of December 31, 2015 and was a current liability of $6.0 million as of December 31, 2016. |
Supplementary Quarterly Financi
Supplementary Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Quarterly Financial Data (Unaudited) | (11) Supplementary Quarterly Financial Data (Unaudited) 2015 First Second Third Fourth Total (In thousands, except per share data) Total oil and gas sales $ 66,522 $ 77,312 $ 61,360 $ 47,228 $ 252,422 Operating loss $ (96,928 ) $ (182,185 ) $ (596,026 ) $ (290,515 ) $ (1,165,654 ) Net loss $ (78,502 ) $ (135,068 ) $ (544,996 ) $ (288,543 ) $ (1,047,109 ) Loss per share: Basic and diluted $ (8.53 ) $ (14.64 ) $ (59.05 ) $ (31.26 ) $ (113.53 ) 2016 First Second Third Fourth Total (In thousands, except per share data) Total oil and gas sales $ 36,163 $ 40,715 $ 50,330 $ 48,498 $ 175,706 Operating loss $ (56,490 ) $ (22,706 ) $ (98,789 ) $ (5,805 ) $ (183,790 ) Net income (loss) $ (56,577 ) $ 4,852 $ (28,476 ) $ (54,933 ) $ (135,134 ) Income (loss) per share: Basic and diluted $ (5.71 ) $ 0.42 $ (2.32 ) $ (4.48 ) $ (11.52 ) Basic and diluted per share amounts are the same for each of the quarters and for the years ended where a net loss was reported. Results of operations include the following non-routine items of income (expense), which are presented before the effect of income taxes: 2015 First Second Third Fourth Total (In thousands) Gain (loss) on sale of oil and gas properties $ — $ (111,830 ) $ 52 $ (307 ) $ (112,085 ) Net gain (loss) on extinguishment of debt $ (2,735 ) $ 7,267 $ 51,054 $ 23,155 $ 78,741 Impairments of unproved oil and gas properties $ (40,432 ) $ (23,040 ) $ (5,090 ) $ (385 ) $ (68,947 ) Impairments of proved oil and gas properties $ (403 ) $ (1,984 ) $ (544,714 ) $ (254,246 ) $ (801,347 ) 2016 First Second Third Fourth Total (In thousands) Gain (loss) on sale of oil and gas properties $ 740 $ (1,647 ) $ (13,196 ) $ (212 ) $ (14,315 ) Net gain (loss) on extinguishment of debt $ 33,380 $ 56,196 $ 100,540 $ (1,064 ) $ 189,052 Impairments of unproved oil and gas properties $ (7,753 ) $ — $ (76,391 ) $ — $ (84,144 ) Impairments of proved oil and gas properties $ (22,718 ) $ (1,742 ) $ (113 ) $ (2,561 ) $ (27,134 ) |
Oil and Gas Reserves Informatio
Oil and Gas Reserves Information (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Extractive Industries [Abstract] | |
Oil and Gas Reserves Information (Unaudited) | (12) Oil and Gas Reserves Information (Unaudited) Set forth below is a summary of the changes in Comstock's net quantities of oil and natural gas reserves for each of the three years in the period ended December 31, 2016: 2014 2015 2016 Oil Natural Oil Natural Oil Natural Proved Reserves: Beginning of year 21,976 452,653 20,854 495,266 9,229 569,596 Revisions of previous estimates (2,182 ) 3,998 (5,096 ) (41,437 ) (406 ) 130,416 Extensions and discoveries 5,373 78,383 231 168,539 64 285,076 Sales of minerals in place — — (3,671 ) (5,096 ) (222 ) (58,942 ) Production (4,313 ) (39,768 ) (3,089 ) (47,676 ) (1,388 ) (53,678 ) End of year 20,854 495,266 9,229 569,596 7,277 872,468 Proved Developed Reserves: Beginning of year 13,914 344,278 16,247 324,598 9,229 311,130 End of year 16,247 324,598 9,229 311,130 7,277 321,527 The upward revisions of previous estimates in 2016 were primarily performance-related and were attributable to the Company's well performance in the Haynesville shale as well as the expansion of the Company's future drilling plans. The proved oil and gas reserves utilized in the preparation of the financial statements were estimated by Lee Keeling and Associates, independent petroleum consultants, in accordance with guidelines established by the Securities and Exchange Commission and the Financial Accounting Standards Board, which require that reserve reports be prepared under existing economic and operating conditions with no provision for price and cost escalation except by contractual agreement. All of the Company's reserves are located onshore in the continental United States of America. The following table sets forth the standardized measure of discounted future net cash flows relating to proved reserves at December 31, 2015 and 2016: 2015 2016 (In thousands) Cash Flows Relating to Proved Reserves: Future Cash Flows $ 1,763,146 $ 2,267,877 Future Costs: Production (705,146 ) (798,454 ) Development and Abandonment (362,874 ) (502,848 ) Future Income Taxes (1,231 ) (6,488 ) Future Net Cash Flows 693,895 960,087 10% Discount Factor (321,756 ) (530,812 ) Standardized Measure of Discounted Future Net Cash Flows $ 372,139 $ 429,275 The standardized measure of discounted future net cash flows at the end of 2015 and 2016 was determined based on the simple average of the first of month market prices for oil and natural gas for each year. Prices were $46.88 per barrel of oil and $2.34 per Mcf of natural gas for 2015 and $37.62 per barrel of oil and $2.29 per Mcf of natural gas for 2016. Prices used in determining quantities of oil and natural gas reserves and future cash inflows from oil and natural gas reserves represent prices received at the Company's sales point. These prices have been adjusted from posted or index prices for both location and quality differences. Future development and production costs are computed by estimating the expenditures to be incurred in developing and producing proved oil and gas reserves at the end of the year, based on year end costs and assuming continuation of existing economic conditions. Future income tax expenses are computed by applying the appropriate statutory tax rates to the future pre-tax net cash flows relating to proved reserves, net of the tax basis of the properties involved. The future income tax expenses give effect to permanent differences and tax credits, but do not reflect the impact of future operations. The following table sets forth the changes in the standardized measure of discounted future net cash flows relating to proved reserves for the years ended December 31, 2014, 2015 and 2016: 2014 2015 2016 (In thousands) Standardized Measure, Beginning of Year $ 807,217 $ 1,090,660 $ 372,139 Net change in sales price, net of production costs 5,911 (751,774 ) (45,379 ) Development costs incurred during the year which were previously estimated 344,590 157,390 45,648 Revisions of quantity estimates (40,993 ) (111,454 ) 113,583 Accretion of discount 105,400 114,427 37,251 Changes in future development and abandonment costs (10,909 ) 14,901 5,315 Changes in timing and other (19,028 ) (44,439 ) (38,071 ) Extensions and discoveries 163,559 56,216 70,149 Sales of minerals in place — (43,694 ) (22,449 ) Sales, net of production costs (458,254 ) (163,336 ) (107,253 ) Net changes in income taxes 193,167 53,242 (1,658 ) Standardized Measure, End of Year $ 1,090,660 $ 372,139 $ 429,275 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Comstock Resources, Inc. and its subsidiaries are engaged in oil and natural gas exploration, development and production, and the acquisition of producing oil and natural gas properties. The Company's operations are primarily focused in Texas and Louisiana. The consolidated financial statements include the accounts of Comstock Resources, Inc. and its wholly owned or controlled subsidiaries (collectively, "Comstock" or the "Company"). All significant intercompany accounts and transactions have been eliminated in consolidation. The Company accounts for its undivided interest in oil and gas properties using the proportionate consolidation method, whereby its share of assets, liabilities, revenues and expenses are included in its financial statements. Net loss and comprehensive loss are the same in all periods presented. On July 29, 2016, the Company effected a one for five (1:5) reverse split of its outstanding shares of common stock. All amounts disclosed in these financial statements have been adjusted to give effect to this reverse stock split in all periods. Management of the Company has assessed the Company's financial condition, the current capital markets and its future plans given different scenarios of oil and natural gas prices and believes the Company has adequate liquidity to fund its operations for at least 12 months from the date of issuance of these financial statements, which is the requirement to be considered a going concern under generally accepted accounting principles. Management cannot predict how an extended period of low oil and natural gas prices will affect the Company's future operations and liquidity levels. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. Changes in the future estimated oil and natural gas reserves or the estimated future cash flows attributable to the reserves that are utilized for impairment analyses could have a significant impact on the future results of operations. |
Concentration Of Credit Risk And Accounts Receivable | Concentration of Credit Risk and Accounts Receivable Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents, accounts receivable and derivative financial instruments. The Company places its cash with high credit quality financial institutions and its derivative financial instruments with financial institutions and other firms that management believes have high credit ratings. Substantially all of the Company's accounts receivable are due from either purchasers of oil and gas or participants in oil and gas wells for which the Company serves as the operator. Generally, operators of oil and gas wells have the right to offset future revenues against unpaid charges related to operated wells. Oil and gas sales are generally unsecured. The Company's policy is to assess the collectability of its receivables based upon their age, the credit quality of the purchaser or participant and the potential for revenue offset. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectible. Accordingly, no allowance for doubtful accounts has been provided. |
Other Current Assets | Other Current Assets Other current assets at December 31, 2015 and 2016 consist of the following: As of December 31, 2015 2016 (In thousands) Pipe and oil field equipment inventory $ 1,198 $ 1,183 Other 795 641 $ 1,993 $ 1,824 |
Fair Value Measurements | Fair Value Measurements Certain accounts within the Company's consolidated balance sheets are required to be measured at fair value on a recurring basis. These include cash equivalents held in bank accounts and derivative financial instruments in the form of oil and natural gas 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 and cash equivalents valuation is based on Level 1 measurements. The Company's oil and natural gas price swap agreements were 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 December 31, 2016: Carrying Level 1 Level 2 (In thousands) Items measured at fair value on a recurring basis: Assets: Cash and cash equivalents $ 65,904 $ 65,904 $ — Liabilities: Derivative financial instruments $ 6,030 $ — $ 6,030 At December 31, 2016, the Company had As of December 31, 2016, the Company's other financial instruments, comprised solely of its fixed rate debt, had a carrying value of $1.1 billion and a fair value of $1.1 billion. As of December 31, 2015, the Company's fixed rate debt had a carrying value of $1.3 billion and a fair value of $428.8 million. The fair market value of the Company's fixed rate debt was based on quoted prices as of December 31, 2016 and December 31, 2015, a Level 2 measurement. |
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. Acquisition costs for proved oil and gas properties, costs of drilling and equipping productive wells, and costs of unsuccessful development wells are capitalized and amortized on an equivalent unit-of-production basis over the life of the remaining related oil and gas reserves. Equivalent units are determined by converting oil to natural gas at the ratio of one barrel of oil for six thousand cubic feet of natural gas. This conversion ratio is not based on the price of oil or natural gas, and there may be a significant difference in price between an equivalent volume of oil versus natural gas. Amortization is calculated at the field level. The estimated future costs of dismantlement, restoration, plugging and abandonment of oil and gas properties and related facilities disposal are capitalized when asset retirement obligations are incurred and amortized as part of depreciation, depletion and amortization expense. The costs of unproved properties which are determined to be productive are transferred to proved oil and gas properties and amortized on an equivalent unit-of-production basis. Exploratory expenses, including geological and geophysical expenses and delay rentals for unevaluated oil and gas properties, are charged to expense as incurred. Unproved oil and gas properties are periodically assessed for impairment on a property by property basis, and any impairment in value is charged to exploration expense. During 2014, 2015 and 2016, impairment charges of $0.5 million, $68.9 million and $84.1 million, respectively, were recognized in exploration expense related to certain leases that the Company no longer expects to drill on. Exploratory drilling costs are initially capitalized as unproved property but charged to expense if and when the well is determined not to have found commercial quantities of proved oil and gas reserves. Exploratory drilling costs are evaluated within a one-year period after the completion of drilling. The Company periodically assesses the need for an impairment of the costs capitalized for its evaluated oil and gas properties on a property basis. If impairment is indicated based on undiscounted expected future cash flows attributable to the property, then a provision for impairment is recognized to the extent that net capitalized costs exceed the estimated fair value of the property. The Company determines the fair values of its oil and gas properties using a discounted cash flow model and proved and risk-adjusted probable reserves. Undrilled acreage is valued based on sales transactions in comparable areas. Significant Level 3 assumptions associated with the calculation of discounted future cash flows included in the cash flow model include management's outlook for oil and natural gas prices, future oil and natural gas production, production costs, capital expenditures, and the total proved and risk-adjusted probable oil and natural gas reserves expected to be recovered. Management's oil and natural gas price outlook is developed based on third-party longer-term price forecasts as of each measurement date. The expected future net cash flows are discounted using an appropriate discount rate in determining a property's fair value. The oil and natural gas prices used for determining asset impairments will generally differ from those used in the standardized measure of discounted future net cash flows because the standardized measure requires the use of an average price based on the first day of each month of the preceding year. In 2016, the Company recognized impairments of $27.1 million on certain of its oil and gas properties, including an impairment of $20.8 million to adjust the carrying value of the Company's South Texas natural gas properties to fair value of $42.5 million when the assets were designated as held for sale in the first quarter of 2016. The fair value of the other properties impaired in 2016 was $21.1 million. In 2015, reductions to management's oil and natural gas price outlook resulted in impairments of $801.3 million of the Company's oil properties in South Texas and Mississippi, and certain of its natural gas properties in Texas and Louisiana. The following table presents the fair value and impairments recorded by the Company in the third quarter and fourth quarter of 2015, as well as the average oil price per barrel and gas price per thousand cubic feet over the life of the properties and the applicable discount rates utilized in the Company's assessments: Fair Value Impairment Management's Price Outlook Annual Oil Gas (In thousands) (Per barrel) (Per Mcf) Impairments recorded at September 30, 2015: Oil properties $330,257 $405,308 $73.70 $4.04 10%-20% Natural gas properties $61,625 $139,406 $75.91 $3.91 10%-20% Impairments recorded at December 31, 2015: Oil properties $3,030 $16,036 $73.48 10%-20% Natural gas properties $123,926 $238,210 $70.76 $3.74 10%-20% In 2014, the Company recognized an impairment of $60.3 million on certain of its oil and gas properties which had a fair value of $18.0 million. The Company's estimates of undiscounted future net cash flows attributable to its oil and gas properties may change in the future. The primary factors that may affect estimates of future cash flows include future adjustments, both positive and negative, to proved and appropriate risk-adjusted probable oil and natural gas reserves, results of future drilling activities, future prices for oil and natural gas, and increases or decreases in production and capital costs. As a result of these changes, there may be further impairments in the carrying values of these or other properties. Other property and equipment consists primarily of gas gathering systems, computer equipment, furniture and fixtures and an airplane which are depreciated over estimated useful lives ranging from three to 31 ½ |
Other Assets | Other Assets Other assets primarily consist of deferred costs associated with the Company's bank credit facility. These costs are amortized over the life of the bank credit facility on a straight-line basis which approximates the amortization that would be calculated using an effective interest rate method. |
Accrued Expenses | Accrued Expenses Accrued expenses at December 31, 2015 and 2016 consist of the following: As of December 31, 2015 2016 (In thousands) Accrued interest payable $ 29,075 $ 22,721 Accrued drilling costs 5,306 7,498 Accrued employee compensation 107 6,292 Accrued transportation costs 2,818 2,227 Other 1,138 1,628 $ 38,444 $ 40,366 |
Reserve for Future Abandonment Costs | Reserve for Future Abandonment Costs The Company's asset retirement obligations relate to future plugging and abandonment costs of its oil and gas properties and related facilities disposal. The Company records a liability in the period in which an asset retirement obligation is incurred, in an amount equal to the estimated fair value of the obligation that is capitalized. Thereafter, this liability is accreted up to the final retirement cost. Accretion of the discount is included as part of depreciation, depletion and amortization in the accompanying consolidated statements of operations. The following table summarizes the changes in the Company's total estimated liability: 2015 2016 (In thousands) Reserve for Future Abandonment Costs at beginning of the year $ 14,900 $ 20,093 New wells placed on production 310 3 Changes in estimates and timing 4,927 (553 ) Liabilities settled (89 ) (409 ) Asset divestitures (628 ) (4,268 ) Accretion expense 673 938 Reserve for Future Abandonment Costs at end of the year $ 20,093 $ 15,804 |
Stock-Based Compensation | Stock-based Compensation The Company has stock-based employee compensation plans under which stock awards, comprised primarily of restricted stock and performance share units, are issued to employees and non-employee directors. The Company follows the fair value based method in accounting for equity-based compensation. Under the fair value based method, compensation cost is measured at the grant date based on the fair value of the award and is recognized on a straight-line basis over the award vesting period. The income tax effects of vested stock awards are recognized as an adjustment to additional paid-in capital and as a part of cash flows from financing activities. |
Segment Reporting | Segment Reporting The Company presently operates in one business segment, the exploration and production of oil and natural gas. |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company accounts for derivative financial instruments (including derivative instruments embedded in other contracts) as either an asset or liability measured at its fair value. Changes in the fair value of derivatives are recognized currently in earnings unless specific hedge accounting criteria are met. The Company estimates fair value based on a discounted cash flow model. The fair value of derivative contracts that expire in less than one year are recognized as current assets or liabilities. Those that expire in more than one year are recognized as long-term assets or liabilities. If the derivative is designated as a cash flow hedge, changes in fair value are recognized in other comprehensive income until the hedged item is recognized in earnings. |
Major Purchasers | Major Purchasers In 2016, the Company had four |
Revenue Recognition and Gas Balancing | Revenue Recognition and Gas Balancing Comstock utilizes the sales method of accounting for oil and natural gas revenues whereby revenues are recognized at the time of delivery based on the amount of oil or natural gas sold to purchasers. Revenue is typically recorded in the month of production based on an estimate of the Company's share of volumes produced and prices realized. The amount of oil or natural gas sold may differ from the amount to which the Company is entitled based on its revenue interests in the properties. The Company did not have any significant imbalance positions at December 31, 2015 or 2016. Sales of oil and natural gas generally occur at the wellhead. When sales of oil and gas occur at locations other than the wellhead, the Company accounts for costs incurred to transport the production to the delivery point as gathering and transportation expenses. |
General and Administrative Expenses | General and Administrative Expenses General and administrative expenses are reported net of reimbursements of overhead costs that are received from working interest owners of the oil and gas properties operated by the Company of $13.2 million, $13.9 million and $12.4 million in 2014, 2015 and 2016, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis, as well as the future tax consequences attributable to the future utilization of existing tax net operating loss and other types of carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that the change in rate is enacted. |
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 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 two 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. Unexercised common stock warrants represent the right to convert the warrants into common stock at an exercise price of $0.01 per share. The treasury stock method is used to measure the dilutive effect of unexercised common stock warrants. The shares that would be issuable upon exercise of the conversion rights contains in the Company's convertible debt for each period are based on the if-converted method for computing potentially dilutive shares of common stock that could be issued upon conversion. Basic and diluted earnings per share for 2014, 2015 and 2016 were determined as follows: 2014 2015 2016 Income Shares Per Share Loss Shares Per Share Loss Shares Per Share (In thousands except per share data) Net Loss $ (57,111 ) $ (1,047,109 ) $ (135,134 ) Income Allocable (595 ) — — Basic and Diluted Net Loss $ (57,706 ) 9,309 $ (6.20 ) $ (1,047,109 ) 9,223 $ (113.53 ) $ (135,134 ) 11,729 $ (11.52 ) Basic and diluted per share amounts are the same for the years ended December 31, 2014, 2015, and 2016 due to the net loss reported during each of those years. At December 31, 2014, 2015 and 2016, 241,505, 314,048 and 354,986 shares of unvested 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 included in common stock outstanding were as follows: 2014 2015 2016 (In thousands) Unvested restricted stock 238 293 344 All stock options, unvested PSUs, warrants exercisable into common stock and contingently issuable shares related to the convertible debt that were anti-dilutive to earnings and excluded from weighted average shares used in the computation of earnings per share due to the net loss in each period were as follows: 2014 2015 2016 (In thousands except per share data) Weighted average anti-dilutive stock options 23 20 11 Weighted average exercise price per share $ 164.50 $ 164.75 $ 166.10 Weighted average warrants for common stock — — 337 Weighted average exercise price per share $ — $ — $ 0.01 Weighted average PSUs 100 136 136 Weighted average grant date fair value per unit $ 99.40 $ 35.35 $ 22.17 Weighted average contingently convertible shares — — 11,574 Weighted average conversion price per share $ — $ — $ 12.32 |
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. Cash payments made for interest and income taxes for the years ended December 31, 2014, 2015 and 2016, respectively, were as follows: 2014 2015 2016 (In thousands) Cash payments for: Interest $ 62,812 $ 94,177 $ 105,449 Income taxes $ 682 $ 77 $ — 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 $10.2 million and $0.9 million in 2014 and 2015, respectively, which reduced interest expense and increased the carrying value of its unevaluated oil and gas properties. The Company did not capitalize interest in 2016. The Company also paid in-kind $11.9 million of interest on its convertible notes in 2016. |
Recent Accounting Pronouncements | Recent accounting pronouncements In 2016, the Company adopted ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) " " ' ' In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Other Current Assets | Other current assets at December 31, 2015 and 2016 consist of the following: As of December 31, 2015 2016 (In thousands) Pipe and oil field equipment inventory $ 1,198 $ 1,183 Other 795 641 $ 1,993 $ 1,824 |
Summary of Financial Assets and Liabilities at Fair Value | The following table summarizes financial assets and liabilities accounted for at fair value as of December 31, 2016: Carrying Level 1 Level 2 (In thousands) Items measured at fair value on a recurring basis: Assets: Cash and cash equivalents $ 65,904 $ 65,904 $ — Liabilities: Derivative financial instruments $ 6,030 $ — $ 6,030 |
Schedule of Fair Value Impairments, Average Prices of Oil and Gas Properties And Applicable Discount Rates | The following table presents the fair value and impairments recorded by the Company in the third quarter and fourth quarter of 2015, as well as the average oil price per barrel and gas price per thousand cubic feet over the life of the properties and the applicable discount rates utilized in the Company's assessments: Fair Value Impairment Management's Price Outlook Annual Oil Gas (In thousands) (Per barrel) (Per Mcf) Impairments recorded at September 30, 2015: Oil properties $330,257 $405,308 $73.70 $4.04 10%-20% Natural gas properties $61,625 $139,406 $75.91 $3.91 10%-20% Impairments recorded at December 31, 2015: Oil properties $3,030 $16,036 $73.48 10%-20% Natural gas properties $123,926 $238,210 $70.76 $3.74 10%-20% |
Summary of Accrued Expenses | Accrued expenses at December 31, 2015 and 2016 consist of the following: As of December 31, 2015 2016 (In thousands) Accrued interest payable $ 29,075 $ 22,721 Accrued drilling costs 5,306 7,498 Accrued employee compensation 107 6,292 Accrued transportation costs 2,818 2,227 Other 1,138 1,628 $ 38,444 $ 40,366 |
Summary of Changes in Reserve for Future Abandonment Costs | The following table summarizes the changes in the Company's total estimated liability: 2015 2016 (In thousands) Reserve for Future Abandonment Costs at beginning of the year $ 14,900 $ 20,093 New wells placed on production 310 3 Changes in estimates and timing 4,927 (553 ) Liabilities settled (89 ) (409 ) Asset divestitures (628 ) (4,268 ) Accretion expense 673 938 Reserve for Future Abandonment Costs at end of the year $ 20,093 $ 15,804 |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share for 2014, 2015 and 2016 were determined as follows: 2014 2015 2016 Income Shares Per Share Loss Shares Per Share Loss Shares Per Share (In thousands except per share data) Net Loss $ (57,111 ) $ (1,047,109 ) $ (135,134 ) Income Allocable (595 ) — — Basic and Diluted Net Loss $ (57,706 ) 9,309 $ (6.20 ) $ (1,047,109 ) 9,223 $ (113.53 ) $ (135,134 ) 11,729 $ (11.52 ) |
Weighted Average Shares of Unvested Restricted Stock | Weighted average shares of unvested restricted stock included in common stock outstanding were as follows: 2014 2015 2016 (In thousands) Unvested restricted stock 238 293 344 |
Common Stock Stock Options and Convertible Stock Anti-Dilutive to Earnings Excluded from Weighted Average Shares Used in Computation of Earning Per Share | All stock options, unvested PSUs, warrants exercisable into common stock and contingently issuable shares related to the convertible debt that were anti-dilutive to earnings and excluded from weighted average shares used in the computation of earnings per share due to the net loss in each period were as follows: 2014 2015 2016 (In thousands except per share data) Weighted average anti-dilutive stock options 23 20 11 Weighted average exercise price per share $ 164.50 $ 164.75 $ 166.10 Weighted average warrants for common stock — — 337 Weighted average exercise price per share $ — $ — $ 0.01 Weighted average PSUs 100 136 136 Weighted average grant date fair value per unit $ 99.40 $ 35.35 $ 22.17 Weighted average contingently convertible shares — — 11,574 Weighted average conversion price per share $ — $ — $ 12.32 |
Cash Payments Made for Interest and Income Taxes | Cash payments made for interest and income taxes for the years ended December 31, 2014, 2015 and 2016, respectively, were as follows: 2014 2015 2016 (In thousands) Cash payments for: Interest $ 62,812 $ 94,177 $ 105,449 Income taxes $ 682 $ 77 $ — |
Acquisitions and Dispositions21
Acquisitions and Dispositions of Oil and Gas Properties (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Results of Operations for Properties | Results of operations for the properties that were sold in 2015 and 2016 were as follows: Year Ended December 31, 2014 2015 2016 (In thousands) Total oil and gas sales $ 32,984 $ 30,169 $ 7,480 Total operating expenses (1) (47,639 ) (83,275 ) (5,690 ) Operating income (loss) $ (14,655 ) $ (53,106 ) $ 1,790 (1) Includes direct operating expenses, depreciation, depletion and amortization and exploration expense. Excludes interest expense, general and administrative expenses and depreciation, depletion and amortization expense subsequent to the date the assets were designated as held for sale. |
Oil and Gas Producing Activit22
Oil and Gas Producing Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Oil And Gas Exploration And Production Industries Disclosures [Abstract] | |
Capitalized Costs Related to Oil and Gas Property Acquisition Exploration and Development Activities | Capitalized Costs As of December 31, 2015 2016 (In thousands) Unproved properties $ 84,144 $ — Proved properties: Leasehold costs 982,915 662,022 Wells and related equipment and facilities 3,349,307 3,135,079 Accumulated depreciation depletion and amortization (3,389,786 ) (3,009,236 ) $ 1,026,580 $ 787,865 |
Costs Incurred Related to Oil and Gas Property Acquisition Exploration and Development Activities | Costs Incurred For the Years Ended December 31, 2014 2015 2016 (In thousands) Property Acquisitions: Unproved property acquisitions $ 91,960 $ 12,972 $ — Proved property acquisitions 2,400 — — Development costs 440,848 221,265 58,587 Exploration costs 52,080 12,265 — $ 587,288 $ 246,502 $ 58,587 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt is comprised of the following: As of December 31, 2015 2016 (In thousands) 10% Senior Secured Toggle Notes due 2020: Principal $ — $ 697,195 Discount, net of amortization — (11,955 ) 7¾% Convertible Second Lien PIK Notes due 2019: Principal — 268,432 Accrued interest payable in kind — 6,645 Discount, net of amortization — (61,230 ) 9½% Convertible Second Lien PIK Notes due 2020: Principal — 174,182 Accrued interest payable in kind — 735 Discount, net of amortization — (38,959 ) 10% Senior Secured Notes due 2020: Principal 700,000 2,805 7¾% Senior Notes due 2019: Principal 376,090 17,959 Premium, net of amortization 3,583 118 9½% Senior Notes due 2020: Principal 194,367 4,860 Discount, net of amortization (5,040 ) (98 ) 0 Debt issuance costs, net of amortization (19,670 ) (16,183 ) $ 1,249,330 $ 1,044,506 |
Principal Amount of Debt by Year of Maturity | The following table summarizes Comstock's principal amount of debt as of December 31, 2016 by year of maturity: 2017 2018 2019 2020 2021 Thereafter Total (In thousands) 10% Senior Secured Toggle Notes due 2020 $ — $ — $ — $ 697,195 $ — $ — $ 697,195 7¾% Convertible Second Lien PIK Notes due $ — $ — $ 268,432 $ — $ — $ — $ 268,432 9½% Convertible Second Lien PIK Notes due — — — 174,182 — — 174,182 10% Senior Secured Notes due 2020 — — — 2,805 — — 2,805 7¾% Senior Notes due — — 17,959 — — — 17,959 9½% Senior Notes due — — — 4,860 — — 4,860 $ — $ — $ 286,391 $ 879,042 $ — $ — $ 1,165,433 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum Future Payments under Leases | The Company rents office space and other facilities under noncancelable operating leases. Rent expense for each of the years ended December 31, 2014, 2015 and 2016 was $1.5 million. (In thousands) 2017 $ 1,521 2018 1,560 2019 1,560 2020 1,560 2021 1,560 $ 7,761 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Stock Activity | A summary of restricted stock activity for the year ended December 31, 2016 is presented below: Number of Weighted Outstanding at January 1, 2016 314,048 $49.57 Granted 237,187 $5.46 Vested (191,004 ) $58.80 Forfeitures (5,245 ) $32.07 Outstanding at December 31, 2016 354,986 $15.60 |
Summary of Significant Assumptions Use to Value PSUs | Significant assumptions use to value PSUs in 2014, 2015 and 2016 included: For the Years Ended December 31, 2014 2015 2016 Risk free interest rate 0.6% 1.1% 0.9% Range of implied volatility: Minimum 38% 37% 47% Maximum 70% 65% 92% |
Summary of PSU Activity | A summary of PSU activity for the year ended December 31, 2016 is presented below: Number of Weighted Outstanding at January 1, 2016 133,931 $45.27 Granted 60,015 $7.00 Earned (7,540 ) $21.90 Unearned or forfeited (51,756 ) $64.40 Outstanding at December 31, 2016 134,650 $22.17 |
Stock Option Activity under Company's 2009 Long-term Incentive Plan | The following table summarizes information related to stock option activity under the Company's 2009 Long-term Incentive Plan for the year ended December 31, 2016: Number of Weighted Price Outstanding at January 1, 2016 11,730 $166.10 Expired (11,730 ) $166.10 Outstanding at December 31, 2016 — $— |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision (Benefit) | The following is an analysis of the consolidated income tax provision (benefit): For the Years Ended December 31, 2014 2015 2016 (In thousands) Current - Federal $ — $ — $ — - State (12 ) 804 64 Deferred - Federal (27,652 ) (149,171 ) — - State 2,975 (6,078 ) 7,105 $ (24,689 ) $ (154,445 ) $ 7,169 |
Valuation Allowances Recognized and Related Tax Effect | The valuation allowances recognized and the related tax effect for 2014, 2015 and 2016 are as follows: For the Years Ended December 31, 2014 2015 2016 (In thousands) Federal taxes: Valuation allowance $ — $ 775,304 $ 132,482 Tax effect — 271,356 46,369 State taxes: Valuation allowance 213,066 264,188 434,561 Tax effect 11,099 12,228 23,521 |
Income Tax Expense Benefit Income Tax Reconciliation | The difference between the Company's customary rate of 35% and the effective tax rate on losses is due to the following: For the Years Ended December 31, 2014 2015 2016 (In thousands) Tax benefit at statutory rate $ (28,630 ) $ (420,544 ) $ (44,788 ) Tax effect of: Nondeductible compensation 756 539 73 State taxes, net of federal tax benefit (8,121 ) (18,218 ) (18,860 ) Valuation allowance on deferred tax assets 11,099 283,585 69,890 Other 207 193 854 Total $ (24,689 ) $ (154,445 ) $ 7,169 |
Difference Between Customary Rate and Effective Tax Rate on Income Before Income Taxes Due | For the Years Ended December 31, 2014 2015 2016 Statutory rate 35.0 % 35.0 % 35.0 % Tax effect of: Nondeductible compensation (0.9 ) — (0.1 ) State taxes, net of federal tax benefit 9.9 1.4 14.7 Valuation allowance on deferred tax assets (13.6 ) (23.5 ) (54.6 ) Other (0.2 ) — (0.6 ) Effective tax rate 30.2 % 12.9 % (5.6 %) |
Tax Effects of Significant Temporary Differences Representing Net Deferred Tax Asset and Liability | The tax effects of significant temporary differences representing the net deferred tax liability at December 31, 2015 and 2016 were as follows: 2015 2016 (In thousands) Deferred tax assets: Property and equipment $ 58,993 $ 15,164 Net operating loss carryforwards 255,571 339,914 Alternative minimum tax carryforward 20,435 20,435 Alternative minimum tax carryforward Unrealized hedging loss — 2,110 Gain on debt exchange — 20,194 Other 7,895 8,523 342,894 406,340 Valuation allowance on deferred tax assets (330,372 ) (398,120 ) Deferred tax assets 12,522 8,220 Deferred tax liabilities: Property and equipment (9,047 ) (9,203 ) Unrealized hedging income (506 ) — Original issue discount — (4,025 ) Other (4,934 ) (4,118 ) Deferred tax liabilities (14,487 ) (17,346 ) Net deferred tax liability $ (1,965 ) $ (9,126 ) |
Carryforwards Available to Reduce Future Income Taxes | At December 31, 2016, Comstock had the following carryforwards available to reduce future income taxes: Types of Carryforward Years of Amount (In thousands) Net operating loss - U.S. federal 2017 – 2036 $ 745,190 Net operating loss – state taxes 2020 – 2036 $ 1,521,847 Alternative minimum tax credits Unlimited $ 20,435 |
Derivative Financial Instrume27
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Derivative Financial Instruments | The Company had the following outstanding derivative financial instruments used for oil and natural gas price risk management: Commodity and Derivative Type Weighted-Average Contract Volume Contract Period December 31, 2015: Natural Gas Swap Agreements $3.20 per MMBtu 1,800,000 2016 December 31, 2016: Natural Gas Swap Agreements $3.37 per MMBtu 23,400,000 2017 |
Supplementary Quarterly Finan28
Supplementary Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Supplementary Quarterly Financial Data (Unaudited) | 2015 First Second Third Fourth Total (In thousands, except per share data) Total oil and gas sales $ 66,522 $ 77,312 $ 61,360 $ 47,228 $ 252,422 Operating loss $ (96,928 ) $ (182,185 ) $ (596,026 ) $ (290,515 ) $ (1,165,654 ) Net loss $ (78,502 ) $ (135,068 ) $ (544,996 ) $ (288,543 ) $ (1,047,109 ) Loss per share: Basic and diluted $ (8.53 ) $ (14.64 ) $ (59.05 ) $ (31.26 ) $ (113.53 ) 2016 First Second Third Fourth Total (In thousands, except per share data) Total oil and gas sales $ 36,163 $ 40,715 $ 50,330 $ 48,498 $ 175,706 Operating loss $ (56,490 ) $ (22,706 ) $ (98,789 ) $ (5,805 ) $ (183,790 ) Net income (loss) $ (56,577 ) $ 4,852 $ (28,476 ) $ (54,933 ) $ (135,134 ) Income (loss) per share: Basic and diluted $ (5.71 ) $ 0.42 $ (2.32 ) $ (4.48 ) $ (11.52 ) |
Summary of Results of Operations from Non-Routine Items | Results of operations include the following non-routine items of income (expense), which are presented before the effect of income taxes: 2015 First Second Third Fourth Total (In thousands) Gain (loss) on sale of oil and gas properties $ — $ (111,830 ) $ 52 $ (307 ) $ (112,085 ) Net gain (loss) on extinguishment of debt $ (2,735 ) $ 7,267 $ 51,054 $ 23,155 $ 78,741 Impairments of unproved oil and gas properties $ (40,432 ) $ (23,040 ) $ (5,090 ) $ (385 ) $ (68,947 ) Impairments of proved oil and gas properties $ (403 ) $ (1,984 ) $ (544,714 ) $ (254,246 ) $ (801,347 ) 2016 First Second Third Fourth Total (In thousands) Gain (loss) on sale of oil and gas properties $ 740 $ (1,647 ) $ (13,196 ) $ (212 ) $ (14,315 ) Net gain (loss) on extinguishment of debt $ 33,380 $ 56,196 $ 100,540 $ (1,064 ) $ 189,052 Impairments of unproved oil and gas properties $ (7,753 ) $ — $ (76,391 ) $ — $ (84,144 ) Impairments of proved oil and gas properties $ (22,718 ) $ (1,742 ) $ (113 ) $ (2,561 ) $ (27,134 ) |
Oil and Gas Reserves Informat29
Oil and Gas Reserves Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Extractive Industries [Abstract] | |
Summary of Changes in Net Quantities of Crude Oil and Natural Gas Reserves | Set forth below is a summary of the changes in Comstock's net quantities of oil and natural gas reserves for each of the three years in the period ended December 31, 2016: 2014 2015 2016 Oil Natural Oil Natural Oil Natural Proved Reserves: Beginning of year 21,976 452,653 20,854 495,266 9,229 569,596 Revisions of previous estimates (2,182 ) 3,998 (5,096 ) (41,437 ) (406 ) 130,416 Extensions and discoveries 5,373 78,383 231 168,539 64 285,076 Sales of minerals in place — — (3,671 ) (5,096 ) (222 ) (58,942 ) Production (4,313 ) (39,768 ) (3,089 ) (47,676 ) (1,388 ) (53,678 ) End of year 20,854 495,266 9,229 569,596 7,277 872,468 Proved Developed Reserves: Beginning of year 13,914 344,278 16,247 324,598 9,229 311,130 End of year 16,247 324,598 9,229 311,130 7,277 321,527 |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Reserves | The following table sets forth the standardized measure of discounted future net cash flows relating to proved reserves at December 31, 2015 and 2016: 2015 2016 (In thousands) Cash Flows Relating to Proved Reserves: Future Cash Flows $ 1,763,146 $ 2,267,877 Future Costs: Production (705,146 ) (798,454 ) Development and Abandonment (362,874 ) (502,848 ) Future Income Taxes (1,231 ) (6,488 ) Future Net Cash Flows 693,895 960,087 10% Discount Factor (321,756 ) (530,812 ) Standardized Measure of Discounted Future Net Cash Flows $ 372,139 $ 429,275 |
Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Reserves | The following table sets forth the changes in the standardized measure of discounted future net cash flows relating to proved reserves for the years ended December 31, 2014, 2015 and 2016: 2014 2015 2016 (In thousands) Standardized Measure, Beginning of Year $ 807,217 $ 1,090,660 $ 372,139 Net change in sales price, net of production costs 5,911 (751,774 ) (45,379 ) Development costs incurred during the year which were previously estimated 344,590 157,390 45,648 Revisions of quantity estimates (40,993 ) (111,454 ) 113,583 Accretion of discount 105,400 114,427 37,251 Changes in future development and abandonment costs (10,909 ) 14,901 5,315 Changes in timing and other (19,028 ) (44,439 ) (38,071 ) Extensions and discoveries 163,559 56,216 70,149 Sales of minerals in place — (43,694 ) (22,449 ) Sales, net of production costs (458,254 ) (163,336 ) (107,253 ) Net changes in income taxes 193,167 53,242 (1,658 ) Standardized Measure, End of Year $ 1,090,660 $ 372,139 $ 429,275 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information 1 (Detail) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Accounting Policies [Abstract] | |
Reverse share split | 0.2 |
Reverse share split description | a one for five (1:5) reverse split |
Allowance for doubtful accounts | $ 0 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Summary of Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Other Current Assets [Line Items] | ||
Other Current Assets | $ 1,824 | $ 1,993 |
Pipe and oil field equipment inventory | ||
Schedule Of Other Current Assets [Line Items] | ||
Other Current Assets | 1,183 | 1,198 |
Other | ||
Schedule Of Other Current Assets [Line Items] | ||
Other Current Assets | $ 641 | $ 795 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Summary of Financial Assets and Liabilities at Fair Value (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Liabilities measured at fair value on a recurring basis: | |
Derivative Financial Instruments | $ 6,030 |
Fair Value, Measurements, Recurring | |
Assets measured at fair value on a recurring basis: | |
Cash and cash equivalents | 65,904 |
Liabilities measured at fair value on a recurring basis: | |
Derivative Financial Instruments | 6,030 |
Fair Value, Measurements, Recurring | Level 1 | |
Assets measured at fair value on a recurring basis: | |
Cash and cash equivalents | 65,904 |
Fair Value, Measurements, Recurring | Level 2 | |
Liabilities measured at fair value on a recurring basis: | |
Derivative Financial Instruments | $ 6,030 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Additional Information 2 (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Derivative financial instruments, liability | $ 6 | |
Derivative financial instruments, asset | $ 1.4 | |
Fixed Rate Debt | ||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Long-term debt, including current portion, Carrying Value | 1,100 | 1,300 |
Level 2 | Fixed Rate Debt | ||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Long-term debt, including current portion, Fair Value | $ 1,100 | $ 428.8 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Additional Information 3 (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Conversion ratio of oil to natural gas in units of production | One barrel of oil for six thousand cubic feet of natural gas | ||||||||||
Impairment of unproved oil and natural gas properties | $ 76,391 | $ 7,753 | $ 385 | $ 5,090 | $ 23,040 | $ 40,432 | $ 84,144 | $ 68,947 | $ 500 | ||
Impairment of oil and gas properties | $ 2,561 | $ 113 | $ 1,742 | 22,718 | $ 254,246 | $ 544,714 | $ 1,984 | $ 403 | $ 27,134 | $ 801,347 | 60,268 |
Impaired oil and gas properties fair value | $ 18,000 | ||||||||||
Minimum | |||||||||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment estimated useful lives | 3 years | ||||||||||
Maximum | |||||||||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment estimated useful lives | 31 years 6 months | ||||||||||
Other Properties | |||||||||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Impaired oil and gas properties fair value | $ 21,100 | ||||||||||
South Texas | |||||||||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Impairment of oil and gas properties | 20,800 | $ 20,800 | |||||||||
Assets held for sale, fair value | $ 42,500 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Schedule of Fair Value Impairments, Average Prices of Oil and Gas Properties And Applicable Discount Rates (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($)$ / bbl$ / Mcf | Sep. 30, 2015USD ($)$ / bbl$ / Mcf | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Fair Value And Impairments Oil And Gas Properties [Line Items] | |||||||||||
Impairment of oil and gas properties | $ 2,561 | $ 113 | $ 1,742 | $ 22,718 | $ 254,246 | $ 544,714 | $ 1,984 | $ 403 | $ 27,134 | $ 801,347 | $ 60,268 |
Oil Properties | |||||||||||
Fair Value And Impairments Oil And Gas Properties [Line Items] | |||||||||||
Fair Value | 3,030 | 330,257 | 3,030 | ||||||||
Impairment of oil and gas properties | $ 16,036 | $ 405,308 | |||||||||
Management's Oil Price Outlook | $ / bbl | 73.48 | 73.70 | |||||||||
Management's Gas Price Outlook | $ / Mcf | 4.04 | ||||||||||
Oil Properties | Minimum | |||||||||||
Fair Value And Impairments Oil And Gas Properties [Line Items] | |||||||||||
Annual Discount Rate | 10.00% | 10.00% | |||||||||
Oil Properties | Maximum | |||||||||||
Fair Value And Impairments Oil And Gas Properties [Line Items] | |||||||||||
Annual Discount Rate | 20.00% | 20.00% | |||||||||
Natural Gas Properties | |||||||||||
Fair Value And Impairments Oil And Gas Properties [Line Items] | |||||||||||
Fair Value | $ 123,926 | $ 61,625 | $ 123,926 | ||||||||
Impairment of oil and gas properties | $ 238,210 | $ 139,406 | |||||||||
Management's Oil Price Outlook | $ / bbl | 70.76 | 75.91 | |||||||||
Management's Gas Price Outlook | $ / Mcf | 3.74 | 3.91 | |||||||||
Natural Gas Properties | Minimum | |||||||||||
Fair Value And Impairments Oil And Gas Properties [Line Items] | |||||||||||
Annual Discount Rate | 10.00% | 10.00% | |||||||||
Natural Gas Properties | Maximum | |||||||||||
Fair Value And Impairments Oil And Gas Properties [Line Items] | |||||||||||
Annual Discount Rate | 20.00% | 20.00% |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Liabilities, Current [Abstract] | ||
Accrued interest payable | $ 22,721 | $ 29,075 |
Accrued drilling costs | 7,498 | 5,306 |
Accrued employee compensation | 6,292 | 107 |
Accrued transportation costs | 2,227 | 2,818 |
Other | 1,628 | 1,138 |
Total accrued expenses | $ 40,366 | $ 38,444 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Summary of Changes in Reserve for Future Abandonment Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Asset Retirement Obligations Noncurrent [Abstract] | ||
Reserve for Future Abandonment Costs at beginning of the year | $ 20,093 | $ 14,900 |
New wells placed on production | 3 | 310 |
Changes in estimates and timing | (553) | 4,927 |
Liabilities settled | (409) | (89) |
Asset divestitures | (4,268) | (628) |
Accretion expense | 938 | 673 |
Reserve for Future Abandonment Costs at end of the year | $ 15,804 | $ 20,093 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Additional Information 4 (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)SegmentCustomer$ / sharesshares | Dec. 31, 2015USD ($)Customershares | Dec. 31, 2014USD ($)Customershares | Sep. 06, 2016$ / shares | |
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of operating segments | Segment | 1 | |||
General and administrative expenses reimbursements of overhead costs | $ 12,400 | $ 13,900 | $ 13,200 | |
Performance multiplier, minimum | 0.00% | |||
Performance multiplier, maximum | 200.00% | |||
Warrants for Common Stock exercise price | $ / shares | $ 0.01 | $ 0.01 | ||
Interest costs, capitalized during period | $ 0 | $ 900 | $ 10,200 | |
Interest paid in-kind | 11,860 | |||
Convertible Notes | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Interest paid in-kind | $ 11,860 | |||
Restricted Stock | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Shares of unvested restricted stock outstanding | shares | 354,986 | 314,048 | 241,505 | |
Major Oil and Natural Gas Purchaser | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of major customers of oil and gas sales | Customer | 4 | 2 | 2 | |
Major Oil and Natural Gas Purchaser One | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage accounted of oil and gas sales | 42.00% | 52.00% | 53.00% | |
Major Oil and Natural Gas Purchaser Two | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage accounted of oil and gas sales | 17.00% | 25.00% | 35.00% | |
Major Oil and Natural Gas Purchaser Three | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage accounted of oil and gas sales | 14.00% | |||
Major Oil and Natural Gas Purchaser Four | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage accounted of oil and gas sales | 12.00% |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net Income (loss) | $ (54,933) | $ (28,476) | $ 4,852 | $ (56,577) | $ (288,543) | $ (544,996) | $ (135,068) | $ (78,502) | $ (135,134) | $ (1,047,109) | $ (57,111) |
Income Allocable to Unvested Stock Grants | (595) | ||||||||||
Basic and Diluted Net Income (Loss) Attributable to Common Stock | $ (135,134) | $ (1,047,109) | $ (57,706) | ||||||||
Basic and diluted weighted average shares outstanding | 11,729 | 9,223 | 9,309 | ||||||||
Net loss per share – basic and diluted | $ (4.48) | $ (2.32) | $ 0.42 | $ (5.71) | $ (31.26) | $ (59.05) | $ (14.64) | $ (8.53) | $ (11.52) | $ (113.53) | $ (6.20) |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Weighted Average Shares of Unvested Restricted Stock (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Unvested restricted stock | 344 | 293 | 238 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Common Stock Stock Options and Convertible Stock Anti-Dilutive to Earnings Excluded from Weighted Average Shares Used in Computation of Earning Per Share (Detail) shares in Thousands, EquityUnit in Thousands | 12 Months Ended | ||
Dec. 31, 2016EquityUnit$ / shares$ / EquityUnitshares | Dec. 31, 2015EquityUnit$ / shares$ / EquityUnitshares | Dec. 31, 2014EquityUnit$ / shares$ / EquityUnitshares | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average anti-dilutive stock options | shares | 11 | 20 | 23 |
Weighted average warrants for common stock | shares | 337 | ||
Weighted average PSUs | EquityUnit | 136 | 136 | 100 |
Weighted average grant date fair value per unit | $ / EquityUnit | 22.17 | 35.35 | 99.40 |
Weighted average contingently convertible shares | shares | 11,574 | ||
Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average exercise price per share | $ / shares | $ 166.10 | $ 164.75 | $ 164.50 |
Warrants for Common Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average exercise price per share | $ / shares | 0.01 | ||
Contingently Convertible Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average exercise price per share | $ / shares | $ 12.32 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Cash Payments Made for Interest and Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash payments for: | |||
Interest | $ 105,449 | $ 94,177 | $ 62,812 |
Income taxes | $ 77 | $ 682 |
Acquisitions and Dispositions43
Acquisitions and Dispositions of Oil and Gas Properties - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016USD ($) | Jan. 31, 2016aWell | Jul. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Business Acquisition [Line Items] | ||||||||||||||
Property exchange net acres received | a | 3,637 | |||||||||||||
Property exchange gross wells received | Well | 4 | |||||||||||||
Property exchange net wells received | a | 3.5 | |||||||||||||
Property exchange net acres disposed | a | 2,547 | |||||||||||||
Property exchange gross wells disposed | Well | 7 | |||||||||||||
Property exchange net wells disposed | a | 5.3 | |||||||||||||
Gain on property exchange of oil and gas properties | $ 700 | |||||||||||||
Net proceeds from sale of oil and gas properties | 2,100 | |||||||||||||
Loss on sale of oil and gas properties | 1,600 | |||||||||||||
Impairment of oil and gas properties | $ 2,561 | $ 113 | $ 1,742 | $ 22,718 | $ 254,246 | $ 544,714 | $ 1,984 | $ 403 | 27,134 | $ 801,347 | $ 60,268 | |||
Burleson County, Texas | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Net proceeds from sale of oil and gas properties | $ 102,500 | |||||||||||||
Loss on sale of oil and gas properties | $ 112,100 | |||||||||||||
South Texas | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Net proceeds from sale of oil and gas properties | $ 25,800 | |||||||||||||
Loss on sale of oil and gas properties | 13,400 | |||||||||||||
Impairment of oil and gas properties | $ 20,800 | $ 20,800 |
Acquisitions and Dispositions44
Acquisitions and Dispositions of Oil and Gas Properties - Results of Operations for Properties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Oil And Gas Properties Sold [Abstract] | ||||
Total oil and gas sales | $ 7,480 | $ 30,169 | $ 32,984 | |
Total operating expenses | [1] | (5,690) | (83,275) | (47,639) |
Operating income (loss) | $ 1,790 | $ (53,106) | $ (14,655) | |
[1] | Includes direct operating expenses, depreciation, depletion and amortization and exploration expense. Excludes interest expense, general and administrative expenses and depreciation, depletion and amortization expense subsequent to the date the assets were designated as held for sale. |
Oil and Gas Producing Activit45
Oil and Gas Producing Activities - Capitalized Costs Related to Oil and Gas Property Acquisition Exploration and Development Activities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Oil And Gas Exploration And Production Industries Disclosures [Abstract] | ||
Unproved properties | $ 84,144 | |
Proved properties: | ||
Leasehold costs | $ 662,022 | 982,915 |
Wells and related equipment and facilities | 3,135,079 | 3,349,307 |
Accumulated depreciation depletion and amortization | (3,009,236) | (3,389,786) |
Capitalized costs, oil and gas producing activities, net, total | $ 787,865 | $ 1,026,580 |
Oil and Gas Producing Activit46
Oil and Gas Producing Activities - Costs Incurred Related to Oil and Gas Property Acquisition Exploration and Development Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Acquisitions: | |||
Unproved property acquisitions | $ 12,972 | $ 91,960 | |
Proved property acquisitions | 2,400 | ||
Development costs | $ 58,587 | 221,265 | 440,848 |
Exploration costs | 12,265 | 52,080 | |
Costs incurred, acquisition of oil and gas properties, total | $ 58,587 | $ 246,502 | $ 587,288 |
Long-term Debt - Long-term Debt
Long-term Debt - Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 06, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Principal | $ 1,165,433 | ||
Debt issuance costs, net of amortization | (16,183) | $ (19,670) | |
Long-term Debt | 1,044,506 | 1,249,330 | |
10 % Senior Secured Toggle Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Principal | 697,195 | ||
Discount, net of amortization | (11,955) | ||
7 3/4% Senior Notes due 2019 | |||
Debt Instrument [Line Items] | |||
Principal | 17,959 | $ 18,000 | 376,090 |
Premium, net of amortization | 118 | 3,583 | |
7 3/4% Convertible Second Lien PIK Notes due 2019 | |||
Debt Instrument [Line Items] | |||
Principal | 268,432 | ||
Accrued interest payable in kind | 6,645 | ||
Discount, net of amortization | (61,230) | ||
9 1/2% Senior Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Principal | 4,860 | 4,900 | 194,367 |
Discount, net of amortization | (98) | (5,040) | |
9½ % Convertible Second Lien PIK Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Principal | 174,182 | ||
Accrued interest payable in kind | 735 | ||
Discount, net of amortization | (38,959) | ||
10 % Senior Secured Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Principal | $ 2,805 | $ 2,800 | $ 700,000 |
Long-term Debt - Long-term De48
Long-term Debt - Long-term Debt (Parenthetical) (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
10 % Senior Secured Toggle Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt instrument | 10.00% | 10.00% |
7 3/4% Senior Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt instrument | 7.75% | 7.75% |
7 3/4% Convertible Second Lien PIK Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt instrument | 7.75% | 7.75% |
9 1/2% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt instrument | 9.50% | 9.50% |
9½ % Convertible Second Lien PIK Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt instrument | 9.50% | 9.50% |
10 % Senior Secured Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt instrument | 10.00% | 10.00% |
Long-term Debt - Principal Amou
Long-term Debt - Principal Amount of Debt by Year of Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 06, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
2,017 | $ 0 | ||
2,018 | 0 | ||
2,019 | 286,391 | ||
2,020 | 879,042 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
Long term debt principal amount | 1,165,433 | ||
10 % Senior Secured Toggle Notes due 2020 | |||
Debt Instrument [Line Items] | |||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 697,195 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
Long term debt principal amount | 697,195 | ||
7 3/4% Convertible Second Lien PIK Notes due 2019 | |||
Debt Instrument [Line Items] | |||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 268,432 | ||
2,020 | 0 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
Long term debt principal amount | 268,432 | ||
9½ % Convertible Second Lien PIK Notes due 2020 | |||
Debt Instrument [Line Items] | |||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 174,182 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
Long term debt principal amount | 174,182 | ||
10 % Senior Secured Notes due 2020 | |||
Debt Instrument [Line Items] | |||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 2,805 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
Long term debt principal amount | 2,805 | $ 2,800 | $ 700,000 |
7 3/4% Senior Notes due 2019 | |||
Debt Instrument [Line Items] | |||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 17,959 | ||
2,020 | 0 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
Long term debt principal amount | 17,959 | 18,000 | 376,090 |
9 1/2% Senior Notes due 2020 | |||
Debt Instrument [Line Items] | |||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 4,860 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
Long term debt principal amount | $ 4,860 | $ 4,900 | $ 194,367 |
Long-term Debt - Principal Am50
Long-term Debt - Principal Amount of Debt by Year of Maturity (Parenthetical) (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
10 % Senior Secured Toggle Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt instrument | 10.00% | 10.00% |
7 3/4% Convertible Second Lien PIK Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt instrument | 7.75% | 7.75% |
9½ % Convertible Second Lien PIK Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt instrument | 9.50% | 9.50% |
10 % Senior Secured Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt instrument | 10.00% | 10.00% |
7 3/4% Senior Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt instrument | 7.75% | 7.75% |
9 1/2% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt instrument | 9.50% | 9.50% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Sep. 06, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 05, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||||||||||
Principal | $ 1,165,433,000 | $ 1,165,433,000 | ||||||||||
Gain on extinguishment of debt | (1,064,000) | $ 100,540,000 | $ 56,196,000 | $ 33,380,000 | $ 23,155,000 | $ 51,054,000 | $ 7,267,000 | $ (2,735,000) | 189,052,000 | $ 78,741,000 | ||
Unamortized debt issuance costs | $ 16,183,000 | $ 19,670,000 | $ 16,183,000 | 19,670,000 | ||||||||
Loss from write-off of deferred loan costs | $ 3,700,000 | |||||||||||
10 % Senior Secured Toggle Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on senior notes | 10.00% | 10.00% | 10.00% | 10.00% | ||||||||
Principal | $ 697,195,000 | $ 697,195,000 | ||||||||||
Interest payment terms | payable on March 15 and September 15, and the notes mature on March 15, 2020 | |||||||||||
Maturity of senior notes | Mar. 15, 2020 | |||||||||||
Accrued interest by issuing additional notes | $ 75,000,000 | |||||||||||
Interest rate on senior notes, payment in kind | 12.25% | |||||||||||
Additional notes outstanding | $ 91,900,000 | $ 91,900,000 | ||||||||||
10 % Senior Secured Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on senior notes | 10.00% | 10.00% | 10.00% | 10.00% | ||||||||
Principal | $ 2,800,000 | $ 2,805,000 | $ 700,000,000 | $ 2,805,000 | $ 700,000,000 | |||||||
7 3/4% Convertible Second Lien PIK Notes due 2019 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on senior notes | 7.75% | 7.75% | 7.75% | 7.75% | ||||||||
Principal | $ 268,432,000 | $ 268,432,000 | ||||||||||
Interest payment terms | payable on April 1 and October 1, | |||||||||||
Maturity of senior notes | Apr. 1, 2019 | |||||||||||
7 3/4% Senior Notes due 2019 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on senior notes | 7.75% | 7.75% | 7.75% | 7.75% | ||||||||
Principal amount of notes repurchased | $ 23,900,000 | $ 87,500,000 | $ 23,900,000 | |||||||||
Principal | 18,000,000 | $ 17,959,000 | $ 376,090,000 | $ 17,959,000 | $ 376,090,000 | |||||||
9½ % Convertible Second Lien PIK Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on senior notes | 9.50% | 9.50% | 9.50% | 9.50% | ||||||||
Principal | $ 174,182,000 | $ 174,182,000 | ||||||||||
Interest payment terms | payable on June 15 and December 15, | |||||||||||
Maturity of senior notes | Jun. 15, 2020 | |||||||||||
Interest payment commencing date | Dec. 15, 2016 | |||||||||||
9 1/2% Senior Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on senior notes | 9.50% | 9.50% | 9.50% | 9.50% | ||||||||
Principal amount of notes repurchased | $ 105,600,000 | $ 19,800,000 | $ 105,600,000 | |||||||||
Principal | $ 4,900,000 | $ 4,860,000 | $ 194,367,000 | $ 4,860,000 | 194,367,000 | |||||||
Aggregate purchase price of debt | 42,700,000 | |||||||||||
7 3/4% Senior Notes due 2019 and 9 1/2% Senior Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gain on extinguishment of debt | $ 89,600,000 | |||||||||||
Common stock shares exchanged for repayment of principal amount | 2,748,403 | |||||||||||
Gain on repurchased amount of notes | $ 82,400,000 | |||||||||||
Convertible Second Lien PIK Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument convertible conversion ratio | 0.0812 | |||||||||||
Debt instrument convertible threshold consecutive trading days period | 15 days | |||||||||||
Convertible Second Lien PIK Notes | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Daily volume weighted average price | $ 12.32 | |||||||||||
Exchange Offer | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of outstanding senior notes | 98.00% | |||||||||||
Warrants exercisable | 1,917,342 | |||||||||||
Exchange Offer | 10 % Senior Secured Toggle Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount of notes issued | $ 697,200,000 | |||||||||||
Interest rate on senior notes | 10.00% | |||||||||||
Transaction costs | $ 4,500,000 | |||||||||||
Exchange Offer | 10 % Senior Secured Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on senior notes | 10.00% | |||||||||||
Principal amount of notes repurchased | $ 697,200,000 | |||||||||||
Gain (loss) on exchange of debt | 0 | |||||||||||
Exchange Offer | 7 3/4% Convertible Second Lien PIK Notes due 2019 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount of notes issued | $ 270,600,000 | |||||||||||
Interest rate on senior notes | 7.75% | |||||||||||
Exchange Offer | 7 3/4% Senior Notes due 2019 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on senior notes | 7.75% | |||||||||||
Principal amount of notes repurchased | $ 270,600,000 | |||||||||||
Exchange Offer | 9½ % Convertible Second Lien PIK Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount of notes issued | $ 169,700,000 | |||||||||||
Interest rate on senior notes | 9.50% | |||||||||||
Exchange Offer | 9 1/2% Senior Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on senior notes | 9.50% | |||||||||||
Principal amount of notes repurchased | $ 169,700,000 | |||||||||||
Exchange Offer | 7 3/4% Senior Notes due 2019 and 9 1/2% Senior Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gain on extinguishment of debt | 106,200,000 | |||||||||||
Exchange Offer | Convertible Second Lien PIK Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unamortized debt issuance costs | $ 6,500,000 | |||||||||||
Payment In Cash | 7 3/4% Senior Notes due 2019 and 9 1/2% Senior Notes due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior notes exchanged in cash | $ 3,500,000 |
Long-Term Debt - Additional I52
Long-Term Debt - Additional Information 1 (Detail) - Revolving Credit Facility | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |
Bank credit facility | $ 50,000,000 |
Maturity of credit facility | Mar. 4, 2019 |
Credit facility amount outstanding | $ 0 |
Spread rate over LIBOR for interest rate on credit facility | 2.50% |
Stated percentage over federal funds rate to calculate base rate | 0.50% |
Stated percentage over 30 day LIBOR to calculate base rate | 1.00% |
Spread rate over base rate for interest rate on credit facility | 1.50% |
Commitment fee on unused borrowing base | 0.50% |
Ratio of current assets to current liabilities | 100.00% |
Asset coverage ratio | 250.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rent expense under noncancelable operating leases | $ 1.5 | $ 1.5 | $ 1.5 |
Commitments for contracted drilling services | $ 2.8 | ||
Contract term related to drilling rigs | through April 2017 | ||
Natural gas transportation and treating agreements | through July 2019 | ||
Maximum commitments under natural gas transportation and treating agreements | $ 4.2 |
Commitments and Contingencies54
Commitments and Contingencies - Minimum Future Payments under Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 1,521 |
2,018 | 1,560 |
2,019 | 1,560 |
2,020 | 1,560 |
2,021 | 1,560 |
Operating Leases, Future Minimum Payments Due, Total | $ 7,761 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Feb. 24, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 06, 2016 |
Stockholders Equity [Line Items] | ||||||
Common stock, shares authorized | 75,000,000 | 75,000,000 | 75,000,000 | |||
Common stock, par value | $ 0.50 | $ 0.50 | $ 0.50 | |||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | |||
Preferred stock, par value per share | $ 10 | $ 10 | $ 10 | |||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||
Dividend paid | $ 23,800,000 | |||||
Stock purchased under open market amount | $ 0 | $ 0 | $ 8,086,000 | |||
Debt conversion, convertible instrument, principal amount | $ 2,100,000 | |||||
Warrants issued to acquire common stock | 1,917,342 | |||||
Exercise price of warrants for common stock | $ 0.01 | $ 0.01 | $ 0.01 | |||
Warrants exercised | 1,255,462 | |||||
Warrants outstanding | 661,880 | 661,880 | ||||
Subsequent Event | ||||||
Stockholders Equity [Line Items] | ||||||
Debt conversion, convertible instrument, principal amount | $ 9,200,000 | |||||
Common Stock | ||||||
Stockholders Equity [Line Items] | ||||||
Number of stock purchased under open market | 200,000 | |||||
Debt conversion, converted instrument, shares of common stock issued | 176,175 | |||||
Warrants exercised | 1,256,000 | |||||
Common Stock | Subsequent Event | ||||||
Stockholders Equity [Line Items] | ||||||
Debt conversion, converted instrument, shares of common stock issued | 767,353 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 4,660,000 | $ 8,149,000 | $ 10,697,000 |
Income taxes associated with vesting of equity awards | 0 | 2,044,000 | 1,055,000 |
General and Administrative Expense | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 4,700,000 | $ 8,100,000 | $ 10,700,000 |
2009 Long Term Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Long-term Incentive Plan shares available for future awards of performance share units, restricted stock grants or other equity awards | 2,524,523 |
Stock-based Compensation - Ad57
Stock-based Compensation - Additional Information 1 (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)Unit$ / shares$ / EquityUnitshares | Dec. 31, 2015USD ($)Unit$ / shares$ / EquityUnitshares | Dec. 31, 2014USD ($)Unit$ / shares$ / EquityUnit | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance multiplier, minimum | 0.00% | ||
Performance multiplier, maximum | 200.00% | ||
Number of Options Outstanding | shares | 0 | 11,730 | |
Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense recognized | $ 3.4 | $ 6 | $ 7.3 |
Grant date fair value of share units, per share | $ / shares | $ 5.46 | $ 26.70 | $ 101.20 |
Unrecognized compensation cost related to unvested restricted stock | $ 2.8 | ||
Period in which compensation cost expected to be recognized | 1 year 4 months 24 days | ||
Fair value of restricted stock vested | $ 1.3 | $ 3.7 | $ 10 |
Potential Performance Shares (PSU) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense recognized | $ 1.3 | $ 2.1 | $ 3.4 |
Performance Periods | The performance periods consist of one year, two years and three years, respectively | ||
Number of units granted | Unit | 60,015 | 94,250 | 37,792 |
Grant date fair value of performance share units, granted | $ 0.4 | $ 0.7 | $ 3.7 |
Grant date fair value of share units, per unit | $ / EquityUnit | 7 | 7.30 | 99.05 |
Minimum final number of shares of common stock issuable based on performance multiplier | shares | 0 | ||
Maximum final number of shares of common stock issuable based on performance multiplier | shares | 269,300 | ||
Performance multiplier, minimum | 0.00% | ||
Performance multiplier, maximum | 200.00% | ||
Unrecognized expense, performance share units | $ 1.1 | ||
Term for Amortization of Performance Share Compensation cost | through December 31, 2017. | ||
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Options Outstanding | shares | 0 | ||
Minimum | Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Amortized vesting period of restricted stock | 1 year | ||
Minimum | Potential Performance Shares (PSU) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Amortized vesting period of restricted stock | 1 year | ||
Maximum | Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Amortized vesting period of restricted stock | 3 years | ||
Maximum | Potential Performance Shares (PSU) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Amortized vesting period of restricted stock | 3 years |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Restricted Stock Activity (Detail) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning Balance, Number of Shares, Outstanding | 314,048 | 241,505 | |
Number of Shares, Granted | 237,187 | ||
Number of Shares, Vested | (191,004) | ||
Number of Shares, Forfeitures | (5,245) | ||
Ending Balance, Number of Shares, Outstanding | 354,986 | 314,048 | 241,505 |
Beginning Balance, Weighted Average Grant Price, Outstanding | $ 49.57 | ||
Weighted Average Grant Price, Granted | 5.46 | $ 26.70 | $ 101.20 |
Weighted Average Grant Price, Vested | 58.80 | ||
Weighted Average Grant Price, Forfeitures | 32.07 | ||
Ending Balance, Weighted Average Grant Price, Outstanding | $ 15.60 | $ 49.57 |
Stock-based Compensation - Su59
Stock-based Compensation - Summary of Significant Assumptions Use to Value PSUs (Detail) - Potential Performance Shares (PSU) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance share units, Risk free interest rate | 0.90% | 1.10% | 0.60% |
Performance share units, Minimum volatility | 47.00% | 37.00% | 38.00% |
Performance share units, Maximum volatility | 92.00% | 65.00% | 70.00% |
Stock-based Compensation - Su60
Stock-based Compensation - Summary of PSU Activity (Detail) (Potential Performance Shares (PSU)) - Performance Share Units (PSU) | 12 Months Ended | ||
Dec. 31, 2016Unit$ / EquityUnit | Dec. 31, 2015Unit$ / EquityUnit | Dec. 31, 2014Unit$ / EquityUnit | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning Balance, Number of Units, Outstanding | Unit | 133,931 | ||
Number of Units, Granted | Unit | 60,015 | 94,250 | 37,792 |
Number of Units, Earned | Unit | (7,540) | ||
Number of Units, Unearned or forfeited | Unit | (51,756) | ||
Ending Balance, Number of Units, Outstanding | Unit | 134,650 | 133,931 | |
Beginning Balance, Weighted Average Grant Price, Outstanding | $ / EquityUnit | 45.27 | ||
Weighted Average Grant Price, Granted | $ / EquityUnit | 7 | 7.30 | 99.05 |
Weighted Average Grant Price, Earned | $ / EquityUnit | 21.90 | ||
Weighted Average Grant Price, Unearned or forfeited | $ / EquityUnit | 64.40 | ||
Ending Balance, Weighted Average Grant Price, Outstanding | $ / EquityUnit | 22.17 | 45.27 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Option Activity under Company's Incentive Plans (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Beginning Balance, Outstanding, Number of Options | shares | 11,730 |
Number of Options, Expired | shares | (11,730) |
Ending Balance, Outstanding, Number of Options | shares | 0 |
Beginning of Period, Outstanding, Weighted Average Exercise Price | $ / shares | $ 166.10 |
Weighted Average Exercise Price, Expired | $ / shares | 166.10 |
Ending of Period, Outstanding, Weighted Average Exercise Price | $ / shares | $ 0 |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Matching contributions to the plan | $ 758,000 | $ 888,000 | $ 834,000 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current - Federal | $ 0 | $ 0 | $ 0 |
Current - State | 64 | 804 | (12) |
Deferred - Federal | (149,171) | (27,652) | |
Deferred - State | 7,105 | (6,078) | 2,975 |
Total | $ 7,169 | $ (154,445) | $ (24,689) |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowances Recognized and Related Tax Effect (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | |||
Federal valuation allowance | $ 132,482 | $ 775,304 | |
Federal tax effect | 46,369 | 271,356 | |
State valuation allowance | 434,561 | 264,188 | $ 213,066 |
State tax effect | $ 23,521 | $ 12,228 | $ 11,099 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Jurisdictions | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Customary rate | 35.00% | 35.00% | 35.00% |
Cumulative common stock ownership change over three year period that would limit federal and state net operating loss carry forwards | 50.00% | ||
State jurisdiction currently under review | Jurisdictions | 1 | ||
U.S. Federal | |||
Income Taxes [Line Items] | |||
Net operating loss, Tax Credit Carryforward, Amount | $ 745,190 | ||
State Taxes | |||
Income Taxes [Line Items] | |||
Net operating loss, Tax Credit Carryforward, Amount | 1,521,847 | ||
Valuation allowance on net operating loss carryforwards | $ 1,400,000 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense Benefit Income Tax Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Tax benefit at statutory rate | $ (44,788) | $ (420,544) | $ (28,630) |
Tax effect of: | |||
Nondeductible compensation | 73 | 539 | 756 |
State taxes, net of federal tax benefit | (18,860) | (18,218) | (8,121) |
Valuation allowance on deferred tax assets | 69,890 | 283,585 | 11,099 |
Other | 854 | 193 | 207 |
Total | $ 7,169 | $ (154,445) | $ (24,689) |
Income Taxes - Difference Betwe
Income Taxes - Difference Between Customary Rate and Effective Tax Rate on Income Before Income Taxes Due (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
Tax effect of: | |||
Nondeductible compensation | (0.10%) | (0.90%) | |
State taxes, net of federal tax benefit | 14.70% | 1.40% | 9.90% |
Valuation allowance on deferred tax assets | (54.60%) | (23.50%) | (13.60%) |
Other | (0.60%) | (0.20%) | |
Effective tax rate | (5.60%) | 12.90% | 30.20% |
Income Taxes - Tax Effects of S
Income Taxes - Tax Effects of Significant Temporary Differences Representing Net Deferred Tax Asset and Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Property and equipment | $ 15,164 | $ 58,993 |
Net operating loss carryforwards | 339,914 | 255,571 |
Alternative minimum tax carryforward | 20,435 | 20,435 |
Unrealized hedging loss | 2,110 | |
Gain on debt exchange | 20,194 | |
Other | 8,523 | 7,895 |
Noncurrent deferred tax assets | 406,340 | 342,894 |
Valuation allowance on deferred tax assets | (398,120) | (330,372) |
Deferred tax assets | 8,220 | 12,522 |
Deferred tax liabilities: | ||
Property and equipment | (9,203) | (9,047) |
Unrealized hedging income | (506) | |
Original issue discount | (4,025) | |
Other | (4,118) | (4,934) |
Deferred tax liabilities | (17,346) | (14,487) |
Net deferred tax liability | $ (9,126) | $ (1,965) |
Income Taxes - Carryforwards Av
Income Taxes - Carryforwards Available to Reduce Future Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Carryforward Available To Reduce Future Income Taxes [Line Items] | ||
Alternative minimum tax credits carryforward | $ 20,435 | $ 20,435 |
U.S. Federal | ||
Carryforward Available To Reduce Future Income Taxes [Line Items] | ||
Net operating loss, Years of Expiration Carryforward | 2017 – 2036 | |
Net operating loss, Tax Credit Carryforward, Amount | $ 745,190 | |
State Taxes | ||
Carryforward Available To Reduce Future Income Taxes [Line Items] | ||
Net operating loss, Years of Expiration Carryforward | 2020 – 2036 | |
Net operating loss, Tax Credit Carryforward, Amount | $ 1,521,847 | |
Years of Expiration Carryforward Unlimited | ||
Carryforward Available To Reduce Future Income Taxes [Line Items] | ||
Alternative minimum tax credits carryforward | $ 20,435 |
Derivative Financial Instrume70
Derivative Financial Instruments and Hedging Activities - Additional Information (Detail) MBbls in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)MMBTU$ / MMBTU | Dec. 31, 2015USD ($)MMBTU$ / MMBTU | Dec. 31, 2014USD ($)$ / bblMBbls | Feb. 24, 2017MMBTU$ / MMBTU | |
Derivative Instruments And Hedging Activities [Line Items] | ||||
Gain on derivative financial instruments | $ 2,700 | |||
Loss on derivative financial instruments | $ 5,400 | $ 8,200 | ||
Cash settlements of derivative financial instruments | 2,120 | 1,230 | $ 9,145 | |
Derivative asset at fair value | 1,400 | |||
Derivative asset at carrying value | 1,400 | |||
Derivative asset current at carrying value | $ 1,446 | |||
Derivative liability at fair value | 6,000 | |||
Derivative liability at carrying value | 6,000 | |||
Derivative liability current at carrying value | $ 6,030 | |||
Contract terms 2014 oil production | ||||
Derivative Instruments And Hedging Activities [Line Items] | ||||
Quantity of Crude Oil for Which Swap Entered | MBbls | 2,438 | |||
NYMEX price of crude oil swaps | $ / bbl | 96.56 | |||
Contract terms 2015 natural gas production | ||||
Derivative Instruments And Hedging Activities [Line Items] | ||||
NYMEX price of natural gas swaps | $ / MMBTU | 3.20 | 3.20 | ||
Quantity of natural gas for which swap entered | MMBTU | 1,800,000 | 1,800,000 | ||
Natural Gas Swap Agreements | ||||
Derivative Instruments And Hedging Activities [Line Items] | ||||
Commodity derivatives natural gas volumes hedged | MMBTU | 23,400,000 | 1,800,000 | ||
Average Fixed NYMEX price | $ / MMBTU | 3.37 | 3.20 | ||
Natural Gas Swap Agreements | Scenario Forecast | ||||
Derivative Instruments And Hedging Activities [Line Items] | ||||
Commodity derivatives natural gas volumes hedged | MMBTU | 25,875,000 | |||
Average Fixed NYMEX price | $ / MMBTU | 3.38 |
Derivative Financial Instrume71
Derivative Financial Instruments and Hedging Activities - Summary of Outstanding Derivative Financial Instruments (Detail) - Natural Gas Swap Agreements | 12 Months Ended | |
Dec. 31, 2016MMBTU$ / MMBTU | Dec. 31, 2015MMBTU$ / MMBTU | |
Derivative [Line Items] | ||
Commodity Derivatives Weighted Average Contract Price | $ / MMBTU | 3.37 | 3.20 |
Commodity Derivatives Contract Volume | MMBTU | 23,400,000 | 1,800,000 |
Commodity Derivatives Contract Period | 2,017 | 2,016 |
Supplementary Quarterly Finan72
Supplementary Quarterly Financial Data (Unaudited) - Schedule of Supplementary Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total oil and gas sales | $ 48,498 | $ 50,330 | $ 40,715 | $ 36,163 | $ 47,228 | $ 61,360 | $ 77,312 | $ 66,522 | $ 175,706 | $ 252,422 | $ 555,231 |
Operating loss | (5,805) | (98,789) | (22,706) | (56,490) | (290,515) | (596,026) | (182,185) | (96,928) | (183,790) | (1,165,654) | (32,071) |
Net Income (loss) | $ (54,933) | $ (28,476) | $ 4,852 | $ (56,577) | $ (288,543) | $ (544,996) | $ (135,068) | $ (78,502) | $ (135,134) | $ (1,047,109) | $ (57,111) |
Income (loss) per share: | |||||||||||
Basic and diluted | $ (4.48) | $ (2.32) | $ 0.42 | $ (5.71) | $ (31.26) | $ (59.05) | $ (14.64) | $ (8.53) | $ (11.52) | $ (113.53) | $ (6.20) |
Supplementary Quarterly Finan73
Supplementary Quarterly Financial Data (Unaudited) - Summary of Results of Operations from Non-Routine Items (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Gain (loss) on sale of oil and gas properties | $ (212) | $ (13,196) | $ (1,647) | $ 740 | $ (307) | $ 52 | $ (111,830) | $ (14,315) | $ (112,085) | ||
Net gain on extinguishment of debt | (1,064) | 100,540 | 56,196 | 33,380 | 23,155 | 51,054 | 7,267 | $ (2,735) | 189,052 | 78,741 | |
Impairments of unproved oil and gas properties | (76,391) | (7,753) | (385) | (5,090) | (23,040) | (40,432) | (84,144) | (68,947) | $ (500) | ||
Impairments of proved oil and gas properties | $ (2,561) | $ (113) | $ (1,742) | $ (22,718) | $ (254,246) | $ (544,714) | $ (1,984) | $ (403) | $ (27,134) | $ (801,347) | $ (60,268) |
Oil and Gas Reserves Informat74
Oil and Gas Reserves Information (Unaudited) - Summary of Changes in Net Quantities of Crude Oil and Natural Gas Reserves (Detail) | 12 Months Ended | |||
Dec. 31, 2016MBblsMMcf | Dec. 31, 2015MBblsMMcf | Dec. 31, 2014MBblsMMcf | Dec. 31, 2013MBblsMMcf | |
Oil (MBbls) | ||||
Proved Reserves: | ||||
Beginning of year | MBbls | 9,229 | 20,854 | 21,976 | |
Revisions of previous estimates | MBbls | (406) | (5,096) | (2,182) | |
Extensions and discoveries | MBbls | 64 | 231 | 5,373 | |
Sales of minerals in place | MBbls | (222) | (3,671) | ||
Production | MBbls | (1,388) | (3,089) | (4,313) | |
End of year | MBbls | 7,277 | 9,229 | 20,854 | |
Proved Developed Reserves: | ||||
Proved Developed Reserves | MBbls | 7,277 | 9,229 | 16,247 | 13,914 |
Natural Gas (MMcf) | ||||
Proved Reserves: | ||||
Beginning of year | MMcf | 569,596 | 495,266 | 452,653 | |
Revisions of previous estimates | MMcf | 130,416 | (41,437) | 3,998 | |
Extensions and discoveries | MMcf | 285,076 | 168,539 | 78,383 | |
Sales of minerals in place | MMcf | (58,942) | (5,096) | ||
Production | MMcf | (53,678) | (47,676) | (39,768) | |
End of year | MMcf | 872,468 | 569,596 | 495,266 | |
Proved Developed Reserves: | ||||
Proved Developed Reserves | MMcf | 321,527 | 311,130 | 324,598 | 344,278 |
Oil and Gas Reserves Informat75
Oil and Gas Reserves Information (Unaudited) - Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Reserves (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash Flows Relating to Proved Reserves: | ||||
Future Cash Flows | $ 2,267,877 | $ 1,763,146 | ||
Future Costs: | ||||
Production | (798,454) | (705,146) | ||
Development and Abandonment | (502,848) | (362,874) | ||
Future Income Taxes | (6,488) | (1,231) | ||
Future Net Cash Flows | 960,087 | 693,895 | ||
10% Discount Factor | (530,812) | (321,756) | ||
Standardized Measure of Discounted Future Net Cash Flows | $ 429,275 | $ 372,139 | $ 1,090,660 | $ 807,217 |
Oil and Gas Reserves Informat76
Oil and Gas Reserves Information (Unaudited) - Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Reserves (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Extractive Industries [Abstract] | ||
Percentage of discount factor | 10.00% | 10.00% |
Oil and Gas Reserves Informat77
Oil and Gas Reserves Information (Unaudited) - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2016$ / bbl$ / Mcf | Dec. 31, 2015$ / bbl$ / Mcf | |
Crude Oil and NGL Per Barrel | ||
Average Sales Price And Production Costs Per Unit Of Production [Line Items] | ||
Average sales prices | $ / bbl | 37.62 | 46.88 |
Natural Gas Per Thousand Cubic Feet | ||
Average Sales Price And Production Costs Per Unit Of Production [Line Items] | ||
Average sales prices | $ / Mcf | 2.29 | 2.34 |
Oil and Gas Reserves Informat78
Oil and Gas Reserves Information (Unaudited) - Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Extractive Industries [Abstract] | |||
Standardized Measure, Beginning of Year | $ 372,139 | $ 1,090,660 | $ 807,217 |
Net change in sales price, net of production costs | (45,379) | (751,774) | 5,911 |
Development costs incurred during the year which were previously estimated | 45,648 | 157,390 | 344,590 |
Revisions of quantity estimates | 113,583 | (111,454) | (40,993) |
Accretion of discount | 37,251 | 114,427 | 105,400 |
Changes in future development and abandonment costs | 5,315 | 14,901 | (10,909) |
Changes in timing and other | (38,071) | (44,439) | (19,028) |
Extensions and discoveries | 70,149 | 56,216 | 163,559 |
Sales of minerals in place | (22,449) | (43,694) | 0 |
Sales, net of production costs | (107,253) | (163,336) | (458,254) |
Net changes in income taxes | (1,658) | 53,242 | 193,167 |
Standardized Measure, End of Year | $ 429,275 | $ 372,139 | $ 1,090,660 |