Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 16, 2015 | Jun. 30, 2014 | |
Document and Entity [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ENERGEN CORP | ||
Entity Central Index Key | 277595 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 72,991,974 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $6,440,598,008 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $1,852 | $2,523 |
Accounts receivable, net of allowance for doubtful accounts of $688 and $696 at December 31, 2014 and 2013, respectively | 157,678 | 136,334 |
Inventories | 14,251 | 11,130 |
Assets held for sale | 395,797 | 1,242,872 |
Deferred income taxes | 0 | 21,250 |
Derivative instruments | 322,337 | 17,463 |
Prepayments and other | 27,445 | 9,989 |
Total current assets | 919,360 | 1,441,561 |
Oil and gas properties, successful efforts method | ||
Proved properties | 6,903,514 | 6,695,400 |
Unproved properties | 142,340 | 168,975 |
Less accumulated depreciation, depletion and amortization | 1,893,106 | 1,776,802 |
Oil and gas properties, net | 5,152,748 | 5,087,573 |
Other property and equipment, net | 46,389 | 30,515 |
Total property, plant and equipment, net | 5,199,137 | 5,118,088 |
Other postretirement assets | 0 | 8,894 |
Noncurrent derivative instruments | 0 | 5,439 |
Other assets | 19,761 | 48,230 |
TOTAL ASSETS | 6,138,258 | 6,622,212 |
Current Liabilities | ||
Long-term debt due within one year | 0 | 60,000 |
Notes payable to banks | 0 | 489,000 |
Accounts payable | 101,453 | 78,178 |
Accrued taxes | 5,530 | 8,201 |
Accrued wages and benefits | 46,162 | 27,036 |
Accrued capital costs | 207,461 | 93,623 |
Revenue and royalty payable | 72,047 | 51,519 |
Liabilities related to assets held for sale | 24,230 | 831,570 |
Deferred income taxes | 79,164 | 0 |
Derivative instruments | 988 | 30,302 |
Other | 23,288 | 21,796 |
Total current liabilities | 560,323 | 1,691,225 |
Long-term debt | 1,038,563 | 1,093,541 |
Asset retirement obligations | 94,060 | 108,533 |
Pension and other postretirement liabilities | 15,935 | 47,484 |
Deferred income taxes | 1,000,486 | 807,614 |
Noncurrent derivative instruments | 0 | 398 |
Other | 14,287 | 15,398 |
Total liabilities | 2,723,654 | 3,764,193 |
Commitments and Contingencies | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 6,138,258 | 6,622,212 |
Shareholders' Equity | ||
Preferred stock, cumulative, $0.01 par value | 0 | 0 |
Common shareholders’ equity | ||
Common stock, $0.01 par value; 150,000,000 shares authorized; 75,875,711 shares issued at December 31, 2014 and 75,574,156 shares issued at December 31, 2013 | 759 | 756 |
Premium on capital stock | 564,438 | 523,711 |
Retained earnings | 2,997,821 | 2,476,616 |
Accumulated other comprehensive income (loss), net of tax | ||
Unrealized gain on hedges, net | 0 | 13,362 |
Pension and postretirement plans | -22,870 | -32,245 |
Interest rate swap | 0 | -1,184 |
Deferred compensation plan | 2,862 | 3,259 |
Treasury stock, at cost; 2,980,598 shares and 2,967,999 shares at December 31, 2014 and 2013, respectively | -128,406 | -126,256 |
Total shareholders’ equity | $3,414,604 | $2,858,019 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $688 | $696 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 75,875,711 | 75,574,156 |
Treasury stock, shares | 2,980,598 | 2,967,999 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Oil, natural gas liquids and natural gas sales | $1,344,194 | $1,256,317 | $1,006,795 |
Gain (loss) on derivative instruments, net | 335,019 | -50,024 | 84,153 |
Total revenues | 1,679,213 | 1,206,293 | 1,090,948 |
Operating Costs and Expenses | |||
Oil, natural gas liquids and natural gas production | 274,432 | 257,438 | 202,286 |
Production and ad valorem taxes | 102,063 | 94,103 | 75,907 |
Depreciation, depletion and amortization | 548,564 | 452,876 | 342,611 |
Asset impairment | 416,801 | 13,906 | 6,304 |
Exploration | 28,090 | 14,036 | 13,052 |
General and administrative | 122,052 | 113,821 | 78,627 |
Accretion of discount on asset retirement obligations | 7,608 | 6,995 | 6,339 |
Loss on sale of assets and other, net | 2,642 | 981 | 1,718 |
Total operating costs and expenses | 1,502,252 | 954,156 | 726,844 |
Operating Income | 176,961 | 252,137 | 364,104 |
Other Income (Expense) | |||
Interest expense | -37,771 | -39,736 | -47,565 |
Other income | 1,181 | 3,803 | 1,645 |
Total other expense | -36,590 | -35,933 | -45,920 |
Income From Continuing Operations Before Income Taxes | 140,371 | 216,204 | 318,184 |
Income tax expense | 40,728 | 74,323 | 113,563 |
Income From Continuing Operations | 99,643 | 141,881 | 204,621 |
Discontinued Operations, net of tax | |||
Income from discontinued operations | 29,292 | 59,079 | 48,941 |
Gain on disposal of discontinued operations, net | 439,097 | 3,594 | 0 |
Income From Discontinued Operations | 468,389 | 62,673 | 48,941 |
Net Income | $568,032 | $204,554 | $253,562 |
Diluted Earnings Per Average Common Share | |||
Continuing operations (in dollars per share) | $1.36 | $1.96 | $2.83 |
Discontinued operations (in dollars per share) | $6.39 | $0.86 | $0.68 |
Net Income (in dollars per share) | $7.75 | $2.82 | $3.51 |
Basic Earnings Per Average Common Share | |||
Continuing operations (in dollars per share) | $1.37 | $1.96 | $2.84 |
Discontinued operations (in dollars per share) | $6.42 | $0.87 | $0.68 |
Net Income (in dollars per share) | $7.79 | $2.83 | $3.52 |
Diluted Average Common Shares Outstanding (in shares) | 73,274,631 | 72,470,622 | 72,316,214 |
Basic Average Common Shares Outstanding (in shares) | 72,896,579 | 72,317,865 | 72,119,021 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income | $568,032 | $204,554 | $253,562 |
Cash flow hedges: | |||
Total cash flow hedges | -12,178 | -32,018 | 35,864 |
Pension and postretirement plans: | |||
Amortization of net benefit obligation at transition, net of tax of $8, $112 and $100, respectively | 14 | 207 | 186 |
Amortization of prior service cost, net of tax of $87, $90 and $119, respectively | 161 | 167 | 221 |
Amortization of net loss, net of tax of $7,676, $4,472 and $1,676, respectively | 14,256 | 8,306 | 3,113 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | -5,056 | 11,582 | -17,443 |
Total pension and postretirement plans | 9,375 | 20,262 | -13,923 |
Comprehensive Income | 565,229 | 192,798 | 275,503 |
Commodity Contract | |||
Cash flow hedges: | |||
Reclassification adjustment for derivative instruments, net of tax | 37 | -10,866 | 66,438 |
Reclassification adjustment for derivative instruments, net of tax | -13,399 | -22,124 | -29,359 |
Interest Rate Swap | |||
Cash flow hedges: | |||
Reclassification adjustment for derivative instruments, net of tax | -298 | -148 | -2,281 |
Reclassification adjustment for derivative instruments, net of tax | $1,482 | $1,120 | $1,066 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current period change in fair value of interest rate swap, tax | $23 | ($6,660) | $40,720 |
Amortization of net obligation at transition, tax | 8 | 112 | 100 |
Amortization of prior service cost, tax | 87 | 90 | 119 |
Amortization of net loss, tax | 7,676 | 4,472 | 1,676 |
Current period change in fair value of pension and postretirement plans, tax | -2,722 | 6,237 | -9,393 |
Commodity Contract | |||
Current period change in fair value of interest rate swap, tax | 23 | -6,660 | 40,720 |
Reclassification adjustment for derivative instruments, tax | -8,212 | -13,560 | -17,994 |
Interest Rate Swap | |||
Current period change in fair value of interest rate swap, tax | -160 | -80 | -1,228 |
Reclassification adjustment for derivative instruments, tax | $798 | $603 | $574 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Premium on Capital Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Deferred Compensation Plan | Treasury Stock |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | $2,432,163 | $750 | $485,720 | $2,100,885 | ($30,252) | $3,511 | ($128,451) |
Balance, shares at Dec. 31, 2011 | 75,007,412 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 253,562 | 253,562 | |||||
Other comprehensive income | 21,941 | 21,941 | |||||
Purchase of treasury shares, net (5,459 shares in 2014, 14,766 shares in 2013, 32,768 shares in 2012) | -277 | -277 | |||||
Purchase and retirement of shares, shares | 0 | ||||||
Shares issued for employee benefit plans, shares | 60,348 | ||||||
Shares issued for employee benefit plans | 2,061 | 1 | 2,060 | ||||
Deferred compensation obligation | 0 | -737 | 737 | ||||
Stock-based compensation | 7,082 | 6,580 | 502 | ||||
Tax benefit from employee stock plans | 550 | 550 | |||||
Cash dividends, per share - ($0.56 in 2012, $0.58 in 2013, $0.47 in 2014) | -40,392 | -40,392 | |||||
Balance at Dec. 31, 2012 | 2,676,690 | 751 | 494,910 | 2,314,055 | -8,311 | 2,774 | -127,489 |
Balance, shares at Dec. 31, 2012 | 75,067,760 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 204,554 | 204,554 | |||||
Other comprehensive income | -11,756 | -11,756 | |||||
Purchase of treasury shares, net (5,459 shares in 2014, 14,766 shares in 2013, 32,768 shares in 2012) | -1,038 | -1,038 | |||||
Purchase and retirement of shares, shares | 0 | ||||||
Shares issued for employee benefit plans, shares | 506,396 | ||||||
Shares issued for employee benefit plans | 18,795 | 5 | 18,790 | ||||
Deferred compensation obligation | 0 | 485 | -485 | ||||
Stock-based compensation | 9,625 | 6,869 | 2,756 | ||||
Tax benefit from employee stock plans | 3,142 | 3,142 | |||||
Cash dividends, per share - ($0.56 in 2012, $0.58 in 2013, $0.47 in 2014) | -41,993 | -41,993 | |||||
Balance at Dec. 31, 2013 | 2,858,019 | 756 | 523,711 | 2,476,616 | -20,067 | 3,259 | -126,256 |
Balance, shares at Dec. 31, 2013 | 75,574,156 | 75,574,156 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 568,032 | 568,032 | |||||
Other comprehensive income | -2,803 | -2,803 | |||||
Purchase of treasury shares, net (5,459 shares in 2014, 14,766 shares in 2013, 32,768 shares in 2012) | -2,547 | -2,547 | |||||
Purchase and retirement of shares, shares | -226,839 | ||||||
Purchase and retirement of shares, value | -14,913 | -2 | -2,388 | -12,523 | |||
Shares issued for employee benefit plans, shares | 528,394 | ||||||
Shares issued for employee benefit plans | 25,501 | 5 | 25,496 | ||||
Deferred compensation obligation | 0 | -397 | 397 | ||||
Stock-based compensation | 11,713 | 11,713 | |||||
Tax benefit from employee stock plans | 5,906 | 5,906 | |||||
Cash dividends, per share - ($0.56 in 2012, $0.58 in 2013, $0.47 in 2014) | -34,304 | -34,304 | |||||
Balance at Dec. 31, 2014 | $3,414,604 | $759 | $564,438 | $2,997,821 | ($22,870) | $2,862 | ($128,406) |
Balance, shares at Dec. 31, 2014 | 75,875,711 | 75,875,711 |
Recovered_Sheet1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, cash dividends per share | $0.47 | $0.58 | $0.56 |
Treasury Stock, Shares, Acquired | 32,768 | 14,766 | 5,459 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net Income | $568,032 | $204,554 | $253,562 |
Income from discontinued operations | -468,389 | -62,673 | -48,941 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, Depletion and Amortization | 548,564 | 452,876 | 342,611 |
Asset impairment | 416,801 | 13,906 | 6,304 |
Accretion of discount on asset retirement obligations | 7,608 | 6,995 | 6,339 |
Deferred income taxes | 302,890 | 118,600 | 128,171 |
Change in derivative fair value | -346,646 | 48,029 | -41,819 |
(Gain) loss on sale of assets | 55 | -89 | -529 |
Stock-based compensation expense | 11,332 | 13,621 | 5,318 |
Exploration, including dry holes | 9,325 | 2,102 | 10,453 |
Discontinued operations | 91,510 | 109,318 | 85,065 |
Other, net | 4,166 | 12,284 | -714 |
Net change in: | |||
Accounts receivable | 4,812 | 23,785 | 4,111 |
Inventories | -3,121 | 10,817 | -561 |
Accounts payable | 18,695 | -52,946 | -14,038 |
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable | -487,787 | 2,139 | -6,679 |
Pension and other postretirement benefit contributions | -12,483 | -5,677 | -3,271 |
Other current assets and liabilities | 40,119 | 29,736 | 10,355 |
Net cash provided by operating activities | 705,483 | 927,377 | 735,737 |
Investing Activities | |||
Additions to oil and natural gas properties | -1,264,059 | -1,109,365 | -1,107,911 |
Acquisitions, net of cash acquired | -70,730 | -31,331 | -139,563 |
Proceeds from sale of Alabama Gas Corporation and other assets | 1,347,725 | 160,986 | 2,562 |
Purchase of short-term investments | -473,000 | -310,000 | 0 |
Sale of short-term investments | 473,000 | 310,000 | 0 |
Discontinued operations | -51,850 | -73,341 | -76,740 |
Other, net | 0 | -559 | -530 |
Net cash used in investing activities | -38,914 | -1,053,610 | -1,322,182 |
Financing Activities | |||
Payment of dividends on common stock | -34,304 | -41,993 | -40,392 |
Issuance of common stock | 23,053 | 17,780 | 1,224 |
Purchase and retirement of shares | -14,913 | 0 | 0 |
Issuance of long-term debt | 0 | 600,000 | 0 |
Reduction of long-term debt | -600,000 | -350,000 | -1,000 |
Payment of debt issuance costs | -10,901 | -2,740 | 0 |
Net change in credit facility | -4,000 | -77,000 | 566,000 |
Tax benefit on stock compensation | 5,906 | 3,142 | 550 |
Discontinued operations | -35,113 | -27,105 | 61,744 |
Other | 0 | 0 | -1,518 |
Net cash provided by (used in) financing activities | -670,272 | 122,084 | 586,608 |
Net change in cash and cash equivalents | -3,703 | -4,149 | 163 |
Cash and cash equivalents at beginning of period | 5,555 | 9,704 | 9,541 |
Cash and cash equivalents at end of period | 1,852 | 5,555 | 9,704 |
Less cash and cash equivalents of discontinued operations at end of period | 0 | -3,032 | -5,559 |
Cash and cash equivalents | $1,852 | $2,523 | $4,145 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | ORGANIZATION AND BASIS OF PRESENTATION |
Energen Corporation (Energen or the Company) is an oil and natural gas exploration and production company engaged in the exploration, development and production of oil and natural gas liquids-rich properties and natural gas in the Permian Basin in west Texas and the San Juan Basin in New Mexico and Colorado. Headquartered in Birmingham, Alabama, our operations are conducted through our subsidiary, Energen Resources Corporation (Energen Resources). | |
Energen may, in the ordinary course of business, be involved in the sale of developed or undeveloped properties. All assets held for sale are reported at the lower of the carrying amount or estimated fair value. Certain of these held for sale properties also qualify as discontinued operations when the sale results in the elimination of operations and cash flows from company operations and when there will be no significant continuing involvement in the operations and cash flows of the sold component. The results of operations of these properties are reclassified and reported as discontinued operations for prior periods. | |
Prior to September 2, 2014, Energen owned Alabama Gas Corporation (Alagasco), which was engaged in the purchase, distribution and sale of natural gas principally in central and north Alabama. On September 2, 2014, Energen completed the transaction to sell Alagasco to The Laclede Group, Inc. (Laclede) for $1.6 billion, less the assumption of $267 million in debt. The net pre-tax proceeds to Energen totaled approximately $1.32 billion resulting in a pre-tax gain of $726.5 million. This sale had an effective date of August 31, 2014. Energen used cash proceeds from the sale to reduce long-term and short-term indebtedness. During the second quarter of 2014, Energen classified Alagasco as held for sale and reflected the associated operating results in discontinued operations. See Note 15, Discontinued Operations and Held for Sale Properties, for further information regarding the sale of Alagasco. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
A. Principles of Consolidation | ||||||||||
The accompanying consolidated financial statements include Energen and its subsidiaries, principally Energen Resources, after elimination of all significant intercompany transactions in consolidation. In the opinion of management, our consolidated financial statements reflect all adjustments necessary to present fairly our financial position, results of operations, and cash flows for the periods and as of the dates shown. Such adjustments consist of normal recurring items. In addition, and in connection with the sale of Alagasco, we have chosen to reformat our financial statements to reflect a presentation more closely aligned with our peers in the oil and natural gas industry. As part of the financial statement reformatting, certain reclassifications were made to conform prior periods’ financial statements to the current-year presentation. These reclassifications primarily included further detail under operating costs and expenses. We further reclassified all commodity hedges from oil and natural gas operating revenues to gain (loss) on derivative instruments, net, as follows: | ||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Open non-cash mark-to-market gains (losses) on derivative instruments | $ | 315,445 | $ | (47,832 | ) | $ | 58,750 | |||
Closed gains (losses) on derivative instruments | 19,574 | (2,192 | ) | 25,403 | ||||||
Gain (loss) on derivative instruments, net | $ | 335,019 | $ | (50,024 | ) | $ | 84,153 | |||
We classified as discontinued operations interest on debt required to be extinguished, certain depreciation costs that ended at close of transaction, the related income tax impact of these items and the earnings of Alagasco. In addition, we reclassified from discontinued operations certain general and administrative (G&A) expenses, other income and the related tax impact from these items. The table below provides a detail of these items included in income (loss) from discontinued operations as follows: | ||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Alagasco net income | $ | 40,646 | $ | 57,399 | $ | 49,402 | ||||
Depreciation, depletion and amortization | (408 | ) | (598 | ) | (572 | ) | ||||
General and administrative | 3,337 | 5,894 | 5,166 | |||||||
Interest expense | (17,306 | ) | (13,815 | ) | (1,693 | ) | ||||
Other income | (347 | ) | (1,342 | ) | (977 | ) | ||||
Income tax expense (benefit) | 5,567 | 3,728 | (727 | ) | ||||||
Alagasco income from discontinued operations | 31,489 | 51,266 | 50,599 | |||||||
Energen income (loss) from discontinued operations | (2,197 | ) | 7,813 | (1,658 | ) | |||||
Income from discontinued operations | $ | 29,292 | $ | 59,079 | $ | 48,941 | ||||
B. Oil and Natural Gas Operations | ||||||||||
Property and Related Depletion: Energen follows the successful efforts method of accounting for costs incurred in the exploration and development of oil, natural gas liquids and natural gas reserves. Lease acquisition costs are capitalized initially, and unproved properties are reviewed periodically to determine if there has been impairment of the carrying value, with any such impairment charged to exploration expense currently. All development costs are capitalized. Energen capitalizes exploratory drilling costs until a determination is made that the well or project has either found proved reserves or is impaired. After an exploratory well has been drilled and found oil and natural gas reserves, a determination may be pending as to whether the oil and natural gas quantities can be classified as proved. In those circumstances, we continue to capitalize the drilling costs pending the determination of proved status if (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (ii) we are making sufficient progress assessing the reserves and the economic and operating viability of the project. Capitalized exploratory drilling costs are presented in unproved properties in the balance sheets. If the exploratory well is determined to be a dry well, the costs are charged to exploration expense. Other exploration costs, including geological and geophysical costs, are expensed as incurred. Depreciation, depletion and amortization expense is determined on a field-by-field basis using the units-of-production method based on proved reserves. Anticipated abandonment and restoration costs are capitalized and depreciated using the units-of-production method based on proved developed reserves. | ||||||||||
Operating Revenues: Energen utilizes the sales method of accounting to recognize oil, natural gas liquids and natural gas production revenue. Under the sales method, revenues are based on actual sales volumes of commodities sold to purchasers. Over-production liabilities are established only when it is estimated that a property’s over-produced volumes exceed the net share of remaining proved reserves for such property. Energen had no significant production imbalances at December 31, 2014 and 2013. | ||||||||||
Derivative Commodity Instruments: We periodically enter into derivative commodity instruments to hedge our exposure to price fluctuations on oil, natural gas and natural gas liquids production. Such instruments may include over-the-counter (OTC) swaps and basis swaps typically executed with investment and commercial banks and energy-trading firms. All derivative commodity instruments in a gain position are valued on a discounted basis incorporating an estimate of performance risk specific to each related counterparty. Derivative commodity instruments in a loss position are valued on a discounted basis incorporating an estimate of performance risk specific to Energen. All derivative transactions are included in operating activities on the consolidated statements of cash flows. | ||||||||||
Energen’s current policy is to not enter into agreements that require the posting of collateral. The majority of our counterparty agreements include provisions for net settlement of transactions payable on the same date and in the same currency. Most of the agreements include various contractual set-off rights, which may be exercised by the non-defaulting party in the event of an early termination due to a default. | ||||||||||
Prior to June 30, 2013, Energen used cash flow hedge accounting, where applicable, for its derivative transactions. The effective portion of the gain or loss on the derivative instrument was recognized in accumulated other comprehensive income as a component of shareholders’ equity and subsequently reclassified as gain (loss) on derivative instruments, net when the forecasted transaction affects earnings. The ineffective portion of a derivative’s change in fair value was required to be recognized immediately in gain (loss) on derivative instruments, net. All other derivative transactions not designated as cash flow hedge accounting are accounted for as mark-to-market transactions with gains or losses recognized in the period of change in gain (loss) on derivative instruments, net. | ||||||||||
Effective March 31, 2013 and June 30, 2013, Energen dedesignated from cash flow hedge accounting 5,078 thousand barrels (MBbl) and 2,353 MBbl, respectively, of various NYMEX oil contracts with the Permian Basin due to lack of correlation. Gains and losses from inception of the hedge to the dedesignation date were frozen in accumulated other comprehensive income until the forecasted transactions actually occurred. Subsequent gains or losses are accounted for as mark-to-market transactions and recognized immediately through gain (loss) on derivative instruments, net. | ||||||||||
Effective June 30, 2013, Energen discontinued the use of cash flow hedge accounting and dedesignated all remaining derivative commodity instruments that were previously designated as cash flow hedges. As a result of discontinuing hedge accounting, any gains or losses from inception of the hedge to June 30, 2013 were frozen in accumulated other comprehensive income until the forecasted transactions actually occurred. Any subsequent gains or losses are accounted for as mark-to-market and recognized immediately through gain (loss) on derivative instruments, net. As a result of Energen’s election to discontinue hedge accounting, all derivative transactions entered into subsequent to June 30, 2013 are accounted for as mark-to-market transactions with gains or losses recognized in the period of change in gain (loss) on derivative instruments, net. | ||||||||||
Derivative transactions are pursuant to standing authorizations by the Board of Directors, which do not authorize speculative positions. Energen formally documents all relationships between hedging instruments and hedged items at the inception of the hedge, as well as its risk management objective and strategy for undertaking the hedge. This process includes specific identification of the hedging instrument and the nature of the risk being hedged. Our credit facility also limits our ability to enter into commodity hedges based on projected production volumes. | ||||||||||
Asset Impairments: Oil and natural gas proved properties periodically are assessed for possible impairment on a field-by-field basis using the estimated undiscounted future cash flows. Impairment losses are recognized when the estimated undiscounted future cash flows are less than the current net book values of the properties in a field. Energen monitors its oil and natural gas properties as well as the market and business environments in which it operates and makes assessments about events that could result in potential impairment issues. Such potential events may include, but are not limited to, substantial commodity price declines, unanticipated increased operating costs, and lower than expected production performance. If a material event occurs, we make an estimate of undiscounted future cash flows to determine whether the asset is impaired. If the asset is impaired, Energen will record an impairment loss for the difference between the net book value of the properties and the fair value of the properties. The fair value of the properties typically is estimated using discounted cash flows. | ||||||||||
Cash flow and fair value estimates require Energen to make projections and assumptions for pricing, demand, competition, operating costs, legal and regulatory issues, discount rates and other factors for many years into the future. These variables can, and often do, differ from the estimates and can have a positive or negative impact on our need for impairment or on the amount of impairment. In addition, further changes in the economic and business environment can impact Energen’s original and ongoing assessments of potential impairment. | ||||||||||
Energen also may recognize impairments of capitalized costs for unproved properties. The greatest portion of these costs generally relate to the acquisition of leasehold. The costs are capitalized and periodically evaluated as to recoverability, based on changes brought about by exploration activities, changes in economic factors and potential shifts in business strategy employed by management. We consider a combination of geologic and economic factors to evaluate the need for impairment of these costs. | ||||||||||
Long-Lived Assets and Discontinued Operations: Energen may, in the ordinary course of business, be involved in the sale of developed or undeveloped properties. All assets held for sale are reported at the lower of the carrying amount or estimated fair value. Certain of these held for sale properties also qualify as discontinued operations when the sale results in the elimination of operations and cash flows from company operations and when there will be no significant continuing involvement in the operations and cash flows of the sold component. The results of operations of these properties are reclassified and reported as discontinued operations for prior periods. | ||||||||||
Acquisitions: Energen recognizes all acquisitions at fair value. Energen estimates the fair value of the assets acquired and liabilities assumed as of the acquisition date, the date on which Energen obtained control of the properties for all acquisitions that qualify as business combinations. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Fair value measurements also utilize assumptions of market participants. Energen uses a discounted cash flow model and makes market assumptions as to future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development and operating costs, projections of future rates of production, expected recovery rates and risk adjusted discount rates. These assumptions represent Level 3 inputs under the fair value hierarchy. Acquisition related costs are expensed as incurred in G&A expense on the consolidated income statements. | ||||||||||
C. Inventory | ||||||||||
Inventories consist primarily of tubular goods and other oilfield equipment used in our operations and are stated at the lower of cost or market value, on a weighted average cost basis. | ||||||||||
D. Fair Value Measurements | ||||||||||
The carrying values of cash and cash equivalents, accounts payable, accounts receivable (net of allowance), derivative commodity instruments, pension and postretirement plan assets and liabilities and other current assets and liabilities approximate fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In determining fair value, we use various valuation approaches and classify all assets and liabilities based on the lowest level of input that is significant to the fair value measurement. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect our own assumptions about the assumptions other market participants would use in pricing the asset or liability based on the best information available in the circumstances. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. The hierarchy is broken down into three levels based on the observability of inputs as follows: | ||||||||||
Level 1 - | Unadjusted quoted prices in active markets for identical assets or liabilities; | |||||||||
Level 2 - | Pricing inputs other than quoted prices in active markets included within Level 1, which are either directly or indirectly observable through correlation with market data as of the reporting date; | |||||||||
Level 3 - | Pricing that requires inputs that are both significant and unobservable to the calculation of the fair value measure. The fair value measure represents estimates of the assumptions that market participants would use in pricing the asset or liability. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints. | |||||||||
The fair value of Energen’s derivative commodity instruments is determined using market transactions and other market evidence whenever possible, including market-based inputs to models and broker or dealer quotations. Our OTC derivative contracts trade in less liquid markets with limited pricing information as compared to markets with actively traded, unadjusted quoted prices; accordingly, the determination of fair value is inherently more difficult. OTC derivatives for which we are able to substantiate fair value through directly observable market prices are classified within Level 2 of the fair value hierarchy. These Level 2 fair values consist of swaps priced in reference to NYMEX oil and natural gas prices. OTC derivatives valued using unobservable market prices have been classified within Level 3 of the fair value hierarchy. These Level 3 fair values include basin specific, basis and natural gas liquids swaps. We consider the frequency of pricing and variability in pricing between sources in determining whether a market is considered active. While Energen does not have access to the specific assumptions used in its counterparties’ valuation models, we maintain communications with our counterparties and discuss pricing practices. Further, we corroborate the fair value of our transactions by comparison of market-based price sources. | ||||||||||
Energen utilizes a discounted cash flow model in valuing its interest rate derivatives, which are comprised of interest rate swap agreements. The fair value attributable to Energen's interest rate derivative contracts is based on (i) the contracted notional amounts, (ii) active market-quoted LIBOR yield curves and (iii) the applicable credit-adjusted risk-free rate yield curve. | ||||||||||
Pension and postretirement plan assets include cash and mutual funds. Plan assets were classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The determination and classification of fair value requires judgment and may affect the valuation of fair value assets and their placement within the fair value hierarchy. Level 1 and Level 2 fair values use market transactions and other market evidence whenever possible and consist primarily of equities, fixed income and mutual funds. Level 3 fair values used unobservable market prices primarily associated with certain alternative investments and a limited partnership in 2013 and 2012. | ||||||||||
E. Income Taxes | ||||||||||
Energen uses the liability method of accounting for income taxes. Under this method, a deferred tax asset or liability is recognized for the estimated future tax effects attributable to temporary differences between the financial statement basis and the tax basis of assets and liabilities as well as tax credit 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 are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period of the change. Energen and its subsidiaries file a consolidated federal income tax return. Consolidated federal income taxes are charged to appropriate subsidiaries using the separate return method. | ||||||||||
F. Accounts Receivable and Allowance for Doubtful Accounts | ||||||||||
Trade accounts receivable are recorded at the invoiced amounts and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in the existing accounts receivable. Energen determines the allowance based on historical experience and in consideration of current market conditions. Account balances are charged against the allowance when it is anticipated the receivable will not be recovered. | ||||||||||
G. Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents consist of cash in banks and investments readily convertible into cash, which have original maturities within three months at the date of acquisition. Cash equivalents are stated at cost, which approximates fair value. | ||||||||||
H. Short-term Investments | ||||||||||
All highly liquid financial instruments with maturities greater than three months and less than one year at the date of purchase are considered to be short-term investments. As of December 31, 2014 and 2013, Energen had no short-term investments. | ||||||||||
I. Earnings Per Share (EPS) | ||||||||||
Energen’s basic earnings per share amounts have been computed based on the weighted average number of common shares outstanding. Diluted earnings per share amounts reflect the assumed issuance of common shares for all potentially dilutive securities. | ||||||||||
J. Stock-Based Compensation | ||||||||||
Energen measures all share-based compensation awards at fair value at the date of grant and expenses the awards over the requisite vesting period. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if the actual forfeitures differ from those estimates. We recognize all stock-based compensation expense in the period of grant, subject to certain vesting requirements, for retirement eligible employees. Energen utilizes the long-form method of calculating the available pool of windfall tax benefit. For the years ended December 31, 2014, 2013 and 2012, we recognized an excess tax benefit of $5.9 million, $3.1 million and $0.6 million, respectively, related to our stock-based compensation. | ||||||||||
K. Estimates | ||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The major estimates and assumptions identified by management include, but are not limited to, physical quantities of proved oil and gas reserves, periodic assessments of oil and gas properties for impairment, Energen’s obligations under its employee pension and compensation plans, the valuation of derivative financial instruments, the allowance for doubtful accounts, tax contingency reserves, legal contingency reserves, asset retirement obligations and self insurance reserves. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ from the estimates. | ||||||||||
L. Employee Benefit Plans | ||||||||||
Energen has a defined benefit non-contributory qualified pension plan which covers substantially all employees. Pension benefits are based on years of service and final earnings. Energen also has nonqualified supplemental pension plans covering certain officers of Energen. In addition to providing pension benefits, Energen provides certain postretirement health care and life insurance benefits for all employees hired prior to January 1, 2010. These postretirement healthcare and life insurance benefits are available upon reaching normal retirement age while working for Energen. The projected unit credit actuarial method was used to determine the normal cost and actuarial liability. | ||||||||||
Plan Separation: Effective April 30, 2014, Energen separated its defined benefit non-contributory pension plan and its postretirement healthcare and life insurance benefit plan into an Energen and an Alagasco plan reflecting the separation of assets and obligations in accordance with ERISA provisions. Energen remeasured the plans using current assumptions. | ||||||||||
Plan Termination: In October 2014, Energen’s Board of Directors elected to freeze and terminate its qualified defined benefit pension plan. A plan amendment adopted in October 2014 closes the plan to new entrants, effective November 1, 2014, and freezes benefit accruals effective December 31, 2014. Energen terminated the plan on January 31, 2015. We anticipate distributing benefits under the plan in late 2015 or early 2016 pending receipt of a determination letter from the IRS and completion of certain administrative actions. | ||||||||||
Energen’s non-qualified supplemental retirement plans have also been amended to terminate effective December 31, 2014. Distributions under the plan are subject to certain payment restrictions under the Internal Revenue Code and Treasury regulations and payments to plan participants will be made in each of the first quarters of 2015 and 2016. | ||||||||||
Measurement: For retirement plans and other postretirement plans, certain financial assumptions are used in determining Energen’s projected benefit obligation. These assumptions are examined periodically by Energen, and any required changes are reflected in the subsequent determination of projected benefit obligations. | ||||||||||
Energen calculates periodic expense for the defined benefit pension plan and other postretirement benefit plans on an actuarial basis and the net funded status of benefit plans is recognized as an asset or liability in its statement of financial position with changes in the funded status recognized through comprehensive income. For the pension plan, the benefit obligation is the projected benefit obligation calculated on a plan termination basis assuming a distribution in one year; for other postretirement plans, the benefit obligation is the accumulated postretirement benefit obligation. Energen measures the funded status of its employee benefit plans as of the date of its year-end statement of financial position. | ||||||||||
Discount Rate: For our defined benefit pension plan, we discounted the estimated termination liability using the one year spot rate of 0.70 percent. For our other postretirement plan, we selected a yield curve comprised of a broad base of Aa bonds with maturities between zero and thirty years. The discount rate for the postretirement plan was developed as the level equivalent rate that would produce the same present value as that using spot rates aligned with the projected benefit payments. | ||||||||||
Long-Term Rate of Return: The assumed rate of return on assets is the weighted average of expected long-term asset assumptions. Energen considered past performance and current expectations for assets held by the plans as well as the expected long-term allocation of plan assets. | ||||||||||
Other Significant Assumptions: The estimated weighted average rate of increase in the compensation level for pay related plans is another assumption used in calculation of the net periodic pension cost. | ||||||||||
M. Environmental Costs | ||||||||||
Environmental compliance costs, including ongoing maintenance, monitoring and similar costs, are expensed as incurred. Environmental remediation costs are accrued when remedial efforts are probable and the cost can be reasonably estimated. |
LongTerm_Debt_and_Notes_Payabl
Long-Term Debt and Notes Payable | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Debt Disclosure [Abstract] | |||||||
Long-term Debt and Notes Payable | LONG-TERM DEBT AND NOTES PAYABLE | ||||||
Long-term debt consisted of the following: | |||||||
(in thousands) | December 31, 2014 | December 31, 2013 | |||||
Credit facility | $ | 485,000 | $ | — | |||
7.40% Medium-term Notes, Series A, due July 24, 2017 | 2,000 | 2,000 | |||||
7.36% Medium-term Notes, Series A, due July 24, 2017 | 15,000 | 15,000 | |||||
7.23% Medium-term Notes, Series A, due July 28, 2017 | 2,000 | 2,000 | |||||
7.32% Medium-term Notes, Series A, due July 28, 2022 | 20,000 | 20,000 | |||||
7.60% Medium-term Notes, Series A, due July 26, 2027 | 5,000 | 5,000 | |||||
7.35% Medium-term Notes, Series A, due July 28, 2027 | 10,000 | 10,000 | |||||
7.125% Medium-term Notes, Series B, due February 15, 2028 | 100,000 | 100,000 | |||||
4.625% Notes, due September 1, 2021 | 400,000 | 400,000 | |||||
Senior Term Loans, (floating rate interest LIBOR plus 1.625%) | — | 600,000 | |||||
Total | 1,039,000 | 1,154,000 | |||||
Less amounts due within one year | — | 60,000 | |||||
Less unamortized debt discount | 437 | 459 | |||||
Total | $ | 1,038,563 | $ | 1,093,541 | |||
The aggregate maturities of Energen’s long-term debt as of December 31, 2014 are as follows: | |||||||
Years ending December 31, (in thousands) | |||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||
$— | $— | $19,000 | $— | $485,000 | $535,000 | ||
In December 2013, the Company issued $600 million in Senior Term Loans with a floating interest rate due March 31, 2014 through December 17, 2017. In conjunction with the sale of Alagasco, the $600 million Senior Term Loans were repaid in September 2014. | |||||||
The debt agreements of Energen contain financial and nonfinancial covenants including routine matters such as timely payment of principal and interest, maintenance of corporate existence and restrictions on liens. Although none of the agreements have events of default based on credit ratings, the interest rates applicable to the syndicated credit facility discussed below may adjust based on credit rating changes during certain periods. | |||||||
Under Energen’s Indenture dated September 1, 1996 with The Bank of New York as Trustee, a cross default provision provides that any debt default of more than $10 million by Energen or Energen Resources will constitute an event of default by Energen. The Indenture does not include a restriction on the payment of dividends. | |||||||
Credit Facilities: On September 2, 2014, Energen entered into a $1.5 billion five-year syndicated secured credit facility with domestic and foreign lenders. The credit facility was amended to $2.0 billion on November 17, 2014. The credit facility has an initial borrowing base of $2.1 billion. This credit facility refinances and replaces the $1.25 billion five-year syndicated unsecured credit facility entered into on October 30, 2012. Energen’s obligations under the $2.0 billion syndicated credit facility are unconditionally guaranteed by Energen Resources. Subject to release of collateral in certain periods upon the achievement of certain investment grade ratings from designated ratings agencies, the credit facility is collateralized by certain assets of Energen, including a pledge of equity interests in subsidiaries of Energen other than Energen Resources, and by mortgages on substantially all of Energen Resources’ oil and natural gas properties. The current credit facility qualifies for classification as long-term debt on the consolidated balance sheets. The financial covenants of the credit facility require Energen to maintain a ratio of total debt to consolidated income before interest expense, income taxes, depreciation, depletion, amortization, exploration expense and other non-cash income and expenses (EBITDAX) less than or equal to 4.0 to 1.0; to maintain a ratio of consolidated current assets (adjusted to include amounts available for borrowings and exclude non-cash derivative instruments) to consolidated current liabilities (adjusted to exclude maturities under the credit facility and non-cash derivative instruments) greater than or equal to 1.0 to 1.0; and, during certain periods, to maintain a ratio of the net present value of proved reserves of our oil and natural gas properties to consolidated total debt greater than or equal to 1.50 to 1.0. We are also bound by covenants which limit our ability to incur additional indebtedness, make certain distributions or alter our corporate structure. Energen may not pay dividends during an event of default, if the payment would result in an event of default or if availability is less than 10 percent of the loan limit under the credit facility. Our credit facility also limits our ability to enter into commodity hedges based on projected production volumes. In addition, the terms of our credit facility limit the amount we can borrow to a borrowing base amount which is determined by our lenders in their sole discretion based on their valuation of our proved reserves and their internal criteria including commodity price outlook. The borrowing base amount is subject to redetermination semi-annually and for event-driven unscheduled redeterminations. Our next scheduled redetermination is April 1, 2015. | |||||||
Under Energen’s credit facility, a cross default provision provides that any debt default of more than $75 million by Energen or Energen Resources will constitute an event of default by Energen. | |||||||
Upon an uncured event of default under the credit facility, all amounts owing under the credit facility, if any, depending on the nature of the event of default will automatically, or may upon notice by the administrative agent or the requisite lenders thereunder, become immediately due and payable and the lenders may terminate their commitments under the defaulted facility. Energen was in compliance with the terms of its credit facility as of December 31, 2014. | |||||||
The following is a summary of information relating to Energen’s credit facilities: | |||||||
(in thousands) | December 31, 2014 | December 31, 2013 | |||||
Notes payable to banks | $ | 485,000 | $ | 489,000 | |||
Available for borrowings | 1,515,000 | 761,000 | |||||
Total | $ | 2,000,000 | $ | 1,250,000 | |||
Maximum amount outstanding at any month-end | $ | 750,000 | $ | 859,000 | |||
Average daily amount outstanding | $ | 482,166 | $ | 772,012 | |||
Weighted average interest rates based on: | |||||||
Average daily amount outstanding | 1.46 | % | 1.39 | % | |||
Amount outstanding at year-end | 1.67 | % | 1.4 | % | |||
Energen’s total interest expense was $37.8 million, $39.7 million and $47.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. Energen’s total interest expense for the years ended December 31, 2014, 2013 and 2012 included amortization of debt issuance costs of $5.7 million, $2.0 million and $2.4 million, respectively. In addition, Energen’s total interest expense for the years ended December 31, 2014, 2013 and 2012 included capitalized interest expense of $0.2 million, $0.2 million and $0.5 million, respectively. At December 31, 2014, Energen paid commitment fees on the unused portion of available credit facilities at a current annual rate of 30 basis points per annum. See Note 2, Summary of Significant Accounting Policies, for further information regarding interest on debt required to be extinguished, associated with the sale of Alagasco, which was classified to discontinued operations. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | INCOME TAXES | ||||||||||||
The components of Energen’s income taxes consisted of the following: | |||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Taxes estimated to be payable currently: | |||||||||||||
Federal | $ | 161,576 | $ | 23,342 | $ | 16,295 | |||||||
State | 72,379 | 2,516 | 3,125 | ||||||||||
Total current | 233,955 | 25,858 | 19,420 | ||||||||||
Taxes deferred: | |||||||||||||
Federal | 144,645 | 85,950 | 119,053 | ||||||||||
State | (34,447 | ) | (2,300 | ) | 5,346 | ||||||||
Total deferred | 110,198 | 83,650 | 124,399 | ||||||||||
Total income tax expense | $ | 344,153 | $ | 109,508 | $ | 143,819 | |||||||
The components of Energen’s income taxes consisted of the following: | |||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Income tax expense from continuing operations | $ | 40,728 | $ | 74,323 | $ | 113,563 | |||||||
Income tax expense from discontinued operations | 17,928 | 33,174 | 30,256 | ||||||||||
Income tax expense from gain on disposal of discontinued operations | 285,497 | 2,011 | — | ||||||||||
Total income tax expense | $ | 344,153 | $ | 109,508 | $ | 143,819 | |||||||
Temporary differences and carryforwards which gave rise to Energen’s deferred tax assets and liabilities were as follows: | |||||||||||||
(in thousands) | December 31, 2014 | December 31, 2013 | |||||||||||
Current | Noncurrent | Current | Noncurrent | ||||||||||
Deferred tax assets: | |||||||||||||
Minimum tax credit | $ | — | $ | 46,338 | $ | — | $ | — | |||||
Allowance for doubtful accounts | 244 | — | 251 | — | |||||||||
Insurance and other accruals | 2,537 | — | 3,082 | — | |||||||||
Compensation accruals | 11,355 | — | 12,925 | — | |||||||||
Pension and other costs | — | 7,009 | — | 3,652 | |||||||||
Other comprehensive income | 10,732 | 1,581 | — | 15,350 | |||||||||
Derivative instruments | — | — | 10,769 | — | |||||||||
State net operating losses and other carryforwards | — | 15,392 | — | 4,577 | |||||||||
Other | 665 | — | 235 | — | |||||||||
Total deferred tax assets | 25,533 | 70,320 | 27,262 | 23,579 | |||||||||
Valuation allowance | (1,122 | ) | (2,467 | ) | (299 | ) | (2,674 | ) | |||||
Total deferred tax assets | 24,411 | 67,853 | 26,963 | 20,905 | |||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and basis differences | — | 1,057,430 | — | 821,425 | |||||||||
Derivative instruments | 102,691 | — | — | 2,048 | |||||||||
Other comprehensive income | — | — | 5,540 | — | |||||||||
Other | 884 | 10,909 | 173 | 5,046 | |||||||||
Total deferred tax liabilities | 103,575 | 1,068,339 | 5,713 | 828,519 | |||||||||
Net deferred tax assets (liabilities) | $ | (79,164 | ) | $ | (1,000,486 | ) | $ | 21,250 | $ | (807,614 | ) | ||
Energen files a consolidated federal income tax return with all of its subsidiaries. As of December 31, 2014, the amount of minimum tax credit which can be carried forward indefinitely to reduce future regular tax liability is $46.3 million. Energen has a noncurrent deferred tax asset of $11.8 million relating to Energen Resources’ $254.6 million state net operating loss carryforward which will expire beginning in 2027. Energen Resources anticipates generating adequate future taxable income to fully realize this benefit. Energen has a full valuation allowance recorded against a noncurrent deferred tax asset of $3.6 million arising from certain state net operating loss and charitable contribution carryforwards. Energen intends to fully reserve this asset until it is determined that it is more likely than not that the asset can be realized through future taxable income in the respective state taxing jurisdictions. No other valuation allowance with respect to deferred taxes is deemed necessary as Energen anticipates generating adequate future taxable income to realize the benefits of all remaining deferred tax assets on the consolidated balance sheets. | |||||||||||||
Total income tax expense from continuing operations differed from the amount which would have been provided by applying the statutory federal income tax rate of 35 percent to earnings before taxes as illustrated below: | |||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Income tax expense at statutory federal income tax rate | $ | 49,130 | $ | 75,671 | $ | 111,364 | |||||||
Increase (decrease) resulting from: | |||||||||||||
State income taxes, net of federal income tax benefit | 93 | 1,461 | 2,423 | ||||||||||
Impact of state law changes | (121 | ) | (1,966 | ) | — | ||||||||
Impact of state deferred tax revaluation on San Juan properties | (8,382 | ) | — | — | |||||||||
401(k) stock dividend deduction | (232 | ) | (449 | ) | (514 | ) | |||||||
Other, net | 240 | (394 | ) | 290 | |||||||||
Total income tax expense | $ | 40,728 | $ | 74,323 | $ | 113,563 | |||||||
Effective income tax rate (%) | 29.01 | 34.38 | 35.69 | ||||||||||
Energen recognized an $8.4 million income tax benefit as a result of re-measuring its state deferred tax liabilities during the fourth quarter of 2014. This re-measurement reflected the state apportionment changes related to certain San Juan Basin properties designated as held for sale as of December 31, 2014. | |||||||||||||
A reconciliation of Energen’s beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
(in thousands) | |||||||||||||
Balance as of December 31, 2011 | $ | 10,593 | |||||||||||
Additions based on tax positions related to the current year | 3,731 | ||||||||||||
Additions for tax positions of prior years | 269 | ||||||||||||
Reductions for tax positions of prior years | (446 | ) | |||||||||||
Lapse of statute of limitations | (1,592 | ) | |||||||||||
Balance as of December 31, 2012 | 12,555 | ||||||||||||
Additions based on tax positions related to the current year | 4,546 | ||||||||||||
Additions for tax positions of prior years | 366 | ||||||||||||
Reductions for tax positions of prior years | (46 | ) | |||||||||||
Lapse of statute of limitations | (1,435 | ) | |||||||||||
Balance as of December 31, 2013 | 15,986 | ||||||||||||
Additions based on tax positions related to the current year | 3,873 | ||||||||||||
Additions for tax positions of prior years | 19 | ||||||||||||
Reductions for tax positions of prior years | (954 | ) | |||||||||||
Lapse of statute of limitations | (1,394 | ) | |||||||||||
Balance as of December 31, 2014 | $ | 17,530 | |||||||||||
The amount of unrecognized tax benefits at December 31, 2014 that would favorably impact Energen’s effective tax rate, if recognized, is $7.6 million. Energen recognizes potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2014, 2013, and 2012, Energen recognized approximately $27,000 of expense, $15,000 of expense and $25,000 of income for interest (net of tax benefit) and penalties, respectively. Energen had approximately $0.2 million and $0.2 million for the payment of interest (net of tax benefit) and penalties accrued at December 31, 2014 and 2013, respectively. | |||||||||||||
Energen’s tax returns for years 2011-2013 remain open and subject to examination by the IRS and major state taxing jurisdictions. Accordingly, it is reasonably possible that significant changes to the reserve for uncertain tax benefits may occur as a result of various audits and the expiration of the statute of limitations. Although the timing and outcome of tax examinations is highly uncertain, Energen does not expect that the change in the unrecognized tax benefit within the next 12 months would have a material impact to the financial statements. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS | ||||||||||||
Plan Terminations: Effective April 30, 2014, Energen separated its defined benefit non-contributory pension plan and its postretirement healthcare and life insurance benefit plan into an Energen and an Alagasco plan reflecting the separation of assets and obligations in accordance with ERISA provisions. Energen remeasured the plans using current assumptions. | |||||||||||||
In October 2014, Energen’s Board of Directors elected to freeze and terminate its qualified defined benefit pension plan. A plan amendment adopted in October 2014 closes the plan to new entrants, effective November 1, 2014, and freezes benefit accruals effective December 31, 2014. Energen terminated the plan on January 31, 2015. We anticipate distributing benefits under the plan in late 2015 or early 2016 pending receipt of a determination letter from the IRS and completion of certain administrative actions. | |||||||||||||
Energen’s non-qualified supplemental retirement plans were amended to terminate effective December 31, 2014. Distributions under the plans are subject to certain payment restrictions under the Internal Revenue Code and Treasury regulations and payments to plan participants will be made in each of the first quarters of 2015 and 2016. In connection with the termination of these plans, Energen has also reclassified approximately $11.0 million as of December 31, 2014 of its investment in a Rabbi Trust from other long term assets to prepayments and other assets in the accompanying balance sheets to reflect its intent to utilize these assets to fund the estimated payments in the first quarter of 2015. | |||||||||||||
Benefit Obligations: The following table sets forth the combined funded status of the defined qualified and nonqualified supplemental benefit plans along with the postretirement health care and life insurance benefit plans and their reconciliation with the related amounts in Energen’s consolidated financial statements. As Energen has frozen and plans to terminate the defined benefit pension plan, the projected pension benefit obligation as of December 31, 2014 represents the present value of the estimated cost of settling the plans benefit obligation. The amounts in the table below as of December, 31 2013 include both Energen and Alagasco, except for Alagasco plans which contain certain labor union agreements: | |||||||||||||
As of December 31, (in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||
Pension | Postretirement Benefits | ||||||||||||
Accumulated benefit obligation | $ | 107,669 | $ | 225,969 | |||||||||
Benefit obligation: | |||||||||||||
Balance at beginning of period | $ | 266,294 | $ | 293,075 | $ | 33,224 | $ | 46,901 | |||||
Service cost | 8,329 | 13,293 | 262 | 1,125 | |||||||||
Interest cost | 5,325 | 10,161 | 716 | 1,931 | |||||||||
Actuarial (gain) loss | 9,078 | (26,909 | ) | 6,385 | (13,311 | ) | |||||||
Curtailment gain | (8,496 | ) | (4,223 | ) | — | (1,255 | ) | ||||||
Transfer in connection with the sale of Alagasco | (124,783 | ) | — | (28,648 | ) | — | |||||||
Termination benefit charge | 2,477 | — | — | — | |||||||||
Retiree drug subsidy program | — | — | 48 | 124 | |||||||||
Benefits paid | (50,555 | ) | (19,103 | ) | (860 | ) | (2,291 | ) | |||||
Balance at end of period | $ | 107,669 | $ | 266,294 | $ | 11,127 | $ | 33,224 | |||||
Plan assets: | |||||||||||||
Fair value of plan assets at beginning of period | $ | 193,457 | $ | 182,796 | $ | 55,459 | $ | 48,194 | |||||
Actual return (loss) on plan assets | 5,359 | 19,595 | (331 | ) | 8,072 | ||||||||
Employer contributions | 19,164 | 10,169 | 21 | 1,484 | |||||||||
Transfer in connection with the sale of Alagasco | (99,883 | ) | — | (43,596 | ) | — | |||||||
Benefits paid | (50,555 | ) | (19,103 | ) | (860 | ) | (2,291 | ) | |||||
Fair value of plan assets at end of period | $ | 67,542 | $ | 193,457 | $ | 10,693 | $ | 55,459 | |||||
Funded status of plans | $ | (40,127 | ) | $ | (72,837 | ) | $ | (434 | ) | $ | 22,235 | ||
Noncurrent assets | $ | — | $ | — | $ | — | $ | 8,894 | |||||
Noncurrent assets in assets held for sale | — | — | — | 13,341 | |||||||||
Current liabilities | (24,626 | ) | (6,145 | ) | — | — | |||||||
Noncurrent liabilities | (15,501 | ) | (47,485 | ) | (434 | ) | — | ||||||
Noncurrent liabilities in liabilities related to assets held for sale | — | (19,207 | ) | — | — | ||||||||
Net asset (liability) recognized | $ | (40,127 | ) | $ | (72,837 | ) | $ | (434 | ) | $ | 22,235 | ||
Amounts recognized to accumulated other comprehensive income: | |||||||||||||
Prior service costs, net of taxes | $ | — | $ | 323 | $ | — | $ | — | |||||
Net actuarial (gain) loss, net of taxes | 22,246 | 37,479 | 624 | (5,584 | ) | ||||||||
Transition obligation, net of taxes | — | — | — | 27 | |||||||||
Total accumulated other comprehensive income (loss) | $ | 22,246 | $ | 37,802 | $ | 624 | $ | (5,557 | ) | ||||
Other investment assets designated for payment of the nonqualified supplemental retirement plans were as follows: | |||||||||||||
December 31, 2014 | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
Fixed income | $ | — | $ | 4,255 | $ | 4,255 | |||||||
Cash and cash equivalents | 9,929 | — | 9,929 | ||||||||||
Total | $ | 9,929 | $ | 4,255 | $ | 14,184 | |||||||
December 31, 2013 | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
Insurance contracts | $ | — | $ | 14,805 | $ | 14,805 | |||||||
United States equities | 5,579 | — | 5,579 | ||||||||||
Global equities | 2,338 | — | 2,338 | ||||||||||
Fixed income | — | 11,039 | 11,039 | ||||||||||
Total | $ | 7,917 | $ | 25,844 | $ | 33,761 | |||||||
While intended for payment of the nonqualified supplemental retirement plan benefits, these assets remain subject to the claims of Energen’s creditors and are not recognized in the funded status of the plan. These assets are recorded at fair value and included in prepayments and other and other assets in the consolidated balance sheets. | |||||||||||||
The following is a reconciliation of insurance contracts in Level 3 of the fair value hierarchy: | |||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 5,600 | $ | 5,332 | |||||||||
Unrealized gains relating to instruments held at the reporting date | — | 268 | |||||||||||
Transfer out of Level 3 | (5,600 | ) | — | ||||||||||
Balance at end of period | $ | — | $ | 5,600 | |||||||||
Transfer of Insurance Contracts: For the year ended December 31, 2014, there were no significant transfers in or out of Levels 1, 2, or 3. During 2013, Energen determined that its insurance contracts meet the requirements to be categorized as a Level 2 fair value measurement. The insurance contracts consist of multiple contracts with two insurance companies and are accounted for at fair value at the contracts’ cash surrender values. | |||||||||||||
The components of net periodic benefit cost from continuing operations were as follows: | |||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Pension Plans | |||||||||||||
Components of net periodic benefit cost: | |||||||||||||
Service cost | $ | 6,808 | $ | 5,196 | $ | 4,023 | |||||||
Interest cost | 4,498 | 4,496 | 4,296 | ||||||||||
Expected long-term return on assets | (4,386 | ) | (5,225 | ) | (5,134 | ) | |||||||
Prior service cost amortization | 202 | 246 | 209 | ||||||||||
Actuarial loss amortization | 4,995 | 6,919 | 3,945 | ||||||||||
Termination benefit charge | 2,477 | — | — | ||||||||||
Settlement charge | 4,082 | 161 | — | ||||||||||
Curtailment expense (gain) | 254 | (4 | ) | — | |||||||||
Net periodic expense | $ | 18,930 | $ | 11,789 | $ | 7,339 | |||||||
Postretirement Benefit Plans | |||||||||||||
Components of net periodic benefit cost: | |||||||||||||
Service cost | $ | 253 | $ | 386 | $ | 454 | |||||||
Interest cost | 661 | 645 | 810 | ||||||||||
Expected long-term return on assets | (1,122 | ) | (787 | ) | (741 | ) | |||||||
Actuarial gain amortization | (653 | ) | (28 | ) | — | ||||||||
Transition obligation amortization | 44 | 229 | 248 | ||||||||||
Net periodic (income) expense | $ | (817 | ) | $ | 445 | $ | 771 | ||||||
Other changes in plan assets and projected benefit obligations recognized in other comprehensive income were as follows: | |||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Pension Plans | |||||||||||||
Net actuarial (gain) loss experienced during the year | $ | 10,495 | $ | (14,138 | ) | $ | 28,748 | ||||||
Net actuarial loss recognized as expense | (25,433 | ) | (8,934 | ) | (4,908 | ) | |||||||
Prior service cost recognized as expense | (246 | ) | (311 | ) | (340 | ) | |||||||
Curtailment loss | (8,749 | ) | — | — | |||||||||
Total recognized in other comprehensive income (loss) | (23,933 | ) | (23,383 | ) | 23,500 | ||||||||
Postretirement Benefit Plans | |||||||||||||
Net actuarial (gain) loss experienced during the year | $ | 7,649 | $ | (8,057 | ) | $ | (1,787 | ) | |||||
Net actuarial gain recognized as expense | 1,908 | 550 | — | ||||||||||
Transition obligation recognized as expense | (48 | ) | (283 | ) | (294 | ) | |||||||
Total recognized in other comprehensive income (loss) | $ | 9,509 | $ | (7,790 | ) | $ | (2,081 | ) | |||||
In the first quarter of 2014, Energen incurred settlement charges of $6.9 million for the payment of lump sums from the qualified defined benefit pension plans of which $3.7 million is included in discontinued operations. Also in the first quarter of 2014, Energen incurred a settlement charge of $0.4 million for the payment of lump sums from the non-qualified supplemental retirement plans. In the second quarter of 2014, Energen incurred settlement charges of $0.4 million for the payment of lump sums from the qualified defined benefit pension plans. In the third quarter of 2014, Energen incurred a settlement charge of $26,000 for the payment of lump sums from the non-qualified supplemental retirement plans. Also in the third quarter of 2014, Energen incurred settlement charges of $0.3 million for the payment of lump sums from the qualified defined benefit pension plan. In the fourth quarter of 2014, Energen incurred a settlement charge of $1.8 million for the payment of lump sums from the non-qualified supplemental retirement plans which is included in discontinued operations. Also in the fourth quarter of 2014, Energen incurred settlement charges of $39,000 for the payment of lump sums from the qualified defined benefit pension plan. In the fourth quarter of 2014, Energen recognized a termination benefit charge of $2.5 million to provide for early retirement of certain non-highly compensated employees. In conjunction with the sale of Alagasco, Energen recognized a curtailment loss of $0.3 million in the fourth quarter of 2014. | |||||||||||||
In the first quarter of 2013, Energen incurred a settlement charge of $0.5 million for the payment of lump sums from the nonqualified supplemental retirement plans, of which $0.1 million was expensed and $0.4 million was recognized as a regulatory asset at Alagasco. In the third quarter of 2013, Energen incurred a settlement charge of $64,000 for the payment of lump sums from the nonqualified supplemental retirement plans, of which $18,000 was expensed and $46,000 was recognized as a regulatory asset at Alagasco. In conjunction with the sale of its Black Warrior Basin coalbed methane properties in Alabama, Energen recognized a curtailment gain of $1.2 million in the fourth quarter of 2013. | |||||||||||||
Estimated amounts to be amortized from accumulated other comprehensive income into pension cost during 2015 are included in the table below. In addition, the Company anticipates recognizing the remaining amounts from accumulated other comprehensive income on the date of distribution of pension plan benefits. | |||||||||||||
(in thousands) | |||||||||||||
Amortization of net actuarial loss | $ | 841 | |||||||||||
Energen has a long-term disability plan covering most employees. Energen had expense of $0.2 million for each of the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
Assumptions: The weighted average rate assumptions to determine net periodic benefit costs were as follows: | |||||||||||||
Years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Pension Plans | |||||||||||||
Discount rate | 3.66 | % | 3.63 | % | 4.52 | % | |||||||
Expected long-term return on plan assets | 7 | % | 7 | % | 7 | % | |||||||
Rate of compensation increase for pay-related plans | 3.63 | % | 3.71 | % | 3.59 | % | |||||||
Postretirement Benefit Plans | |||||||||||||
Discount rate | 4.88 | % | 4.36 | % | 4.95 | % | |||||||
Expected long-term return on plan assets | 7 | % | 7 | % | 7 | % | |||||||
Rate of compensation increase | 3.6 | % | 3.7 | % | 3.55 | % | |||||||
The pension benefit obligation as of December 31, 2014 represents the present value of the estimated cost of settling the benefit obligation of the plan. For our defined benefit pension plan, we discounted the estimated termination liability using the one year spot rate of 0.70 percent. The discount rate shown below represents the weighted average for both the defined qualified and nonqualified supplemental benefit plans. As the plans were frozen as of December 31, 2014, the rate of compensation increase no longer applies for any of the plans. The weighted average assumptions used to determine the benefit obligations at the measurement date were as follows: | |||||||||||||
Years ended December 31, | 2014 | 2013 | |||||||||||
Pension Plans | |||||||||||||
Discount rate | 0.96 | % | 4.29 | % | |||||||||
Rate of compensation increase for pay-related plans | — | % | 3.63 | % | |||||||||
Postretirement Benefit Plans | |||||||||||||
Discount rate | 4.25 | % | 4.95 | % | |||||||||
Rate of compensation increase for pay-related plans | — | % | 3.6 | % | |||||||||
The assumed post-65 health care cost trend rates used to determine the postretirement benefit obligation at the measurement date were as follows: | |||||||||||||
As of December 31, | 2014 | 2013 | |||||||||||
Health care cost trend rate assumed for next year | 7.25 | % | 6.5 | % | |||||||||
Rate to which the cost trend rate is assumed to decline | 5 | % | 5 | % | |||||||||
Year that rate reaches ultimate rate | 2021 | 2020 | |||||||||||
Health care costs trend rates will not have a material impact to the accumulated postretirement benefit obligation due to the separation of assets and obligations of the postretirement healthcare and life insurance benefit plan into an Energen and an Alagasco plan. Employees remaining at Energen will receive a fixed postretirement benefit. | |||||||||||||
Investment Strategy: Due to the plan termination of our defined benefit plans, we have transitioned our investment strategy to reduce risk. We liquidated our equity and debt securities and have invested fully in cash and cash equivalents at year-end. We expect to hold these funds along with any additional contributions in cash until the benefits are fully distributed. | |||||||||||||
For our postretirement benefit plan assets, we continue to employ a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets with a prudent level of risk. Risk tolerance is established through consideration of plan liabilities, plan funded status, corporate financial condition and market conditions. | |||||||||||||
Energen seeks to maintain an appropriate level of diversification to minimize the risk of large losses in a single asset class. Accordingly, plan assets for the postretirement health care and life insurance benefit plan do not have a concentration of assets in a single entity, industry, commodity or class of investment fund. | |||||||||||||
The Company’s weighted average plan asset allocations by asset category were as follows: | |||||||||||||
Pension | Postretirement Benefits | ||||||||||||
As of December 31, | Target | 2014 | 2013 | Target | 2014 | 2013 | |||||||
Asset category: | |||||||||||||
Equity securities | — | % | — | % | 34 | % | 60 | % | 60 | % | 61 | % | |
Debt securities | — | % | — | % | 28 | % | 40 | % | 40 | % | 39 | % | |
Other | 100 | % | 100 | % | 38 | % | — | % | — | % | — | % | |
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |
Equity securities for pension and postretirement benefits do not include the Company’s common stock. | |||||||||||||
Plan assets included in the funded status of the pension plans were as follows: | |||||||||||||
31-Dec-14 | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
Cash and cash equivalents | $ | 67,542 | $ | — | $ | 67,542 | |||||||
Total | $ | 67,542 | $ | — | $ | 67,542 | |||||||
December 31, 2013 | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
United States equities | $ | 34,117 | $ | — | $ | 34,117 | |||||||
Global equities | 20,144 | 8,636 | 28,780 | ||||||||||
Fixed income | — | 50,777 | 50,777 | ||||||||||
Alternative investments | — | 37,292 | 37,292 | ||||||||||
Cash and cash equivalents | 5,970 | 36,521 | 42,491 | ||||||||||
Total | $ | 60,231 | $ | 133,226 | $ | 193,457 | |||||||
Pension plan assets at December 31, 2013 include the assets of Alagasco. Energen had no Level 3 pension plan assets. United States equities consist of mutual and commingled funds with varying strategies. Such strategies include stock investments across market capitalizations and investment styles. Global equities consist of mutual funds and a limited partnership that invest in United States and non-United States securities broadly diversified across mostly developed markets but with some tactical exposure to emerging markets. Fixed income securities consist of mutual funds and separate accounts. Fixed income securities are well diversified with allocations to investment grade and non-investment grade issues and issues that provide both intermediate and longer duration exposure. Alternative investments consist of limited partnerships and commingled and mutual funds with varying investment strategies. Alternative investments are meant to serve as a risk reducer at the total portfolio level as they provide asset class exposures not found elsewhere in the portfolio. | |||||||||||||
The following is a reconciliation of plan assets in Level 3 of the fair value hierarchy: | |||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 14,500 | $ | 17,399 | |||||||||
Unrealized gains (losses) | — | 992 | |||||||||||
Unrealized gains relating to instruments held at the reporting date | — | 242 | |||||||||||
Settlements | — | (4,948 | ) | ||||||||||
Purchases | — | 815 | |||||||||||
Transfer out of Level 3 | (14,500 | ) | — | ||||||||||
Balance at end of period | $ | — | $ | 14,500 | |||||||||
Transfer of Alternative Investments: For the year ended December 31, 2014 there were no significant transfers in or out of Levels 1, 2, or 3. During 2013, Energen determined that its alternative investments meet the requirements to be categorized as Level 2 fair value measurement. The alternative investments consist of three investments that are measured at net asset value. Net asset value per share serves as an estimate for the fair value of an investment as long as certain requirements are met. | |||||||||||||
Plan assets included in the funded status of the postretirement benefit plans were as follows: | |||||||||||||
December 31, 2014 | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
United States equities | $ | 4,715 | $ | — | $ | 4,715 | |||||||
Global equities | 1,711 | — | 1,711 | ||||||||||
Fixed income | — | 4,267 | 4,267 | ||||||||||
Total | $ | 6,426 | $ | 4,267 | $ | 10,693 | |||||||
December 31, 2013 | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
United States equities | $ | 24,152 | $ | — | $ | 24,152 | |||||||
Global equities | 9,563 | — | 9,563 | ||||||||||
Fixed income | — | 21,744 | 21,744 | ||||||||||
Total | $ | 33,715 | $ | 21,744 | $ | 55,459 | |||||||
Postretirement benefit plan assets at December 31, 2013 include the assets of Alagasco. Energen had no Level 3 postretirement benefit plan assets. United States equities consists of mutual funds with varying strategies. These funds invest largely in medium to large capitalized companies with exposure blending growth, market-oriented and value styles. Additional fund investments include small capitalization companies, and certain of these funds utilize tax-sensitive management approaches. Global equities are mutual funds that invest in non-United States securities broadly diversified across most developed markets with exposure blending growth, market-oriented and value styles. Fixed income securities are high-quality short-duration securities including investment-grade market sectors with tactical investments in non-investment grade sectors. | |||||||||||||
Cash Flows: During 2015, Energen anticipates an additional contribution of $13.7 million in order to complete the distribution of plan assets related to the plan termination. The Company expects to make benefit payments, which will be funded by the Rabbi Trust, of approximately $11.0 million during 2015 with respect to the termination of the nonqualified supplemental retirement plans. | |||||||||||||
Due to restructuring of our plans, Energen no longer qualifies for benefits related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003. The following benefit payments, which reflect expected future service, as appropriate, are anticipated to be paid as follows: | |||||||||||||
(in thousands) | Pension Benefits | Postretirement Benefits | |||||||||||
2015 | $92,711 | $324 | |||||||||||
2016 | $14,601 | $397 | |||||||||||
2017 | $113 | $472 | |||||||||||
2018 | $110 | $541 | |||||||||||
2019 | $107 | $583 | |||||||||||
2020-2024 | $484 | $3,266 |
Common_Stock_Plans
Common Stock Plans | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Share-based Compensation [Abstract] | ||||||||
Common Stock Plans | COMMON STOCK PLANS | |||||||
Energen Employee Savings Plan (ESP): In October 2014, Energen’s Board of Directors amended and restated the ESP to make certain benefit design changes effective January 1, 2015. The benefit design changes include an increase in the percentage of Energen match and other contributions. A majority of our employees are eligible to participate in the ESP by electing to contribute a portion of their compensation to the ESP. Energen may match a percentage of the contributions and make these contributions in Energen common stock or in funds for the purchase of Energen common stock. Employees may diversify 100 percent of their ESP Energen stock account into other ESP investment options. The ESP also contains employer supplemental contributions. Effective January 1, 2015, the Company match will no longer be contributed in Energen common stock. Expense associated with Energen contributions to the ESP was $3.7 million, $3.7 million and $3.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Stock Incentive Plan: The Stock Incentive Plan provided for the grant of incentive stock options and non-qualified stock options to officers and key employees. The Stock Incentive Plan also provided for the grant of performance share awards and restricted stock units. Energen has typically funded options, restricted stock obligations and performance share obligations through original issue shares and restricted stock through treasury shares. Under the Stock Incentive Plan, 8,600,000 shares of Energen common stock were reserved for issuance with 2,635,544 remaining for issuance as of December 31, 2014. | ||||||||
Performance Share Awards: The Stock Incentive Plan provided for the grant of performance share awards, with each unit equal to the market value of one share of common stock, to eligible employees based on predetermined Energen performance criteria at the end of an award period. The Stock Incentive Plan provided that payment of earned performance share awards be made in the form of Energen common stock. | ||||||||
No performance share awards were granted in 2012. A summary of performance share award activity as of December 31, 2014, and transactions during the years ended December 31, 2014 and 2013 is presented below: | ||||||||
Stock Incentive Plan | ||||||||
Shares | Weighted | |||||||
Average Price | ||||||||
Nonvested at December 31, 2012 | — | $ | — | |||||
Granted (two-year vesting period) | 86,221 | 61.14 | ||||||
Granted (three-year vesting period) | 82,606 | 62.96 | ||||||
Forfeited | (8,008 | ) | 60.03 | |||||
Nonvested at December 31, 2013 | 160,819 | 62.13 | ||||||
Granted (two-year vesting period) | 937 | 131.56 | ||||||
Granted (three-year vesting period) | 65,309 | 93.49 | ||||||
Vested and paid | (14,097 | ) | 70.06 | |||||
Nonvested at December 31, 2014 | 212,968 | $ | 71.53 | |||||
Energen recorded expense of $6.2 million and $3.8 million for the years ended December 31, 2014 and 2013, respectively, for performance share awards with a related deferred income tax benefit of $2.3 million and $1.4 million. During the year ended December 31, 2012, Energen recorded no expense for performance share awards. As of December 31, 2014, there was $5.6 million of total unrecognized compensation cost related to performance share awards. These awards have a remaining weighted average requisite service period of 1.45 years. | ||||||||
Stock Options: The Stock Incentive Plan provided for the grant of incentive stock options, non-qualified stock options, or a combination thereof to officers and key employees. Options granted under the Stock Incentive Plan provided for the purchase of Energen common stock at not less than the fair market value on the date the option was granted. The sale or transfer of the shares is limited during certain periods. All outstanding options are incentive or non-qualified, vest within three years from date of grant and expire 10 years from the grant date. | ||||||||
A summary of stock option activity as of December 31, 2014, and transactions during the years ended December 31, 2014, 2013 and 2012 are presented below: | ||||||||
Stock Incentive Plan | ||||||||
Shares | Weighted Average Exercise Price | |||||||
Outstanding at December 31, 2011 | 1,338,241 | $ | 44.77 | |||||
Granted | 371,040 | 54.11 | ||||||
Exercised | (58,471 | ) | 24.55 | |||||
Forfeited | (2,335 | ) | 46.45 | |||||
Outstanding at December 31, 2012 | 1,648,475 | 47.58 | ||||||
Granted | 137,762 | 49.22 | ||||||
Exercised | (590,119 | ) | 40.92 | |||||
Forfeited | (5,074 | ) | 51.85 | |||||
Outstanding at December 31, 2013 | 1,191,044 | 51.06 | ||||||
Granted | 110,307 | 72.55 | ||||||
Exercised | (544,280 | ) | 50.09 | |||||
Outstanding at December 31, 2014 | 757,071 | $ | 54.88 | |||||
Exercisable at December 31, 2012 | 987,733 | $ | 43.75 | |||||
Exercisable at December 31, 2013 | 713,445 | $ | 49.8 | |||||
Exercisable at December 31, 2014 | 454,938 | $ | 51.88 | |||||
Remaining reserved for issuance at December 31, 2014 | 2,635,544 | — | ||||||
Energen uses the Black-Scholes pricing model to calculate the fair values of the options awarded. For purposes of this valuation the following assumptions were used to derive the fair values: | ||||||||
Grant date | 4/15/14 | 1/22/14 | 10/15/13 | 1/24/13 | 1/25/12 | |||
Awards granted | 2,439 | 107,868 | 3,686 | 134,076 | 371,040 | |||
Fair market value of stock option at grant | $32.22 | $27.57 | $30.53 | $16.66 | $18.79 | |||
Expected life of award | 5.8 years | 5.8 years | 5.8 years | 5.8 years | 5.8 years | |||
Risk-free interest rate | 1.93% | 2.06% | 1.79% | 1.01 | % | 1.07 | % | |
Annualized volatility rate | 40.70% | 40.70% | 40.60% | 40.3 | % | 39.6 | % | |
Dividend yield | 0.20% | 0.80% | 0.70% | 1.2 | % | 1 | % | |
Energen recorded stock option expense of $2.9 million, $3.4 million and $6.2 million during the years ended December 31, 2014, 2013 and 2012, respectively, with a related deferred tax benefit of $1.1 million, $1.3 million and $2.3 million, respectively. | ||||||||
The total intrinsic value of stock options exercised during the year ended December 31, 2014, was $18.5 million. During the year ended December 31, 2014, Energen received cash of $23.1 million from the exercise of stock options. Total intrinsic value for outstanding options as of December 31, 2014, was $7.8 million and $5.4 million for exercisable options. The fair value of options vested for the year ended December 31, 2014 was $5.0 million. As of December 31, 2014, there was $0.5 million of unrecognized compensation cost related to outstanding nonvested stock options. | ||||||||
The following table summarizes options outstanding as of December 31, 2014: | ||||||||
Stock Incentive Plan | ||||||||
Range of Exercise Prices | Shares | Weighted Average Remaining Contractual Life | ||||||
$46.45 | 25,470 | 2.00 years | ||||||
$60.56 | 48,560 | 3.00 years | ||||||
$29.79 | 35,161 | 4.00 years | ||||||
$46.69 | 26,481 | 5.00 years | ||||||
$54.99 | 111,487 | 6.00 years | ||||||
$54.11 | 271,848 | 7.00 years | ||||||
$48.36 | 124,071 | 8.00 years | ||||||
$80.48 | 3,686 | 8.79 years | ||||||
$72.39 | 107,868 | 9.00 years | ||||||
$79.63 | 2,439 | 9.00 years | ||||||
$29.79-$80.48 | 757,071 | 6.68 years | ||||||
The weighted average remaining contractual life of currently exercisable stock options is 5.79 years as of December 31, 2014. | ||||||||
Restricted Stock: In addition, the Stock Incentive Plan provided for the grant of restricted stock units which have been valued based on the quoted market price of Energen’s common stock at the date of grant. Restricted stock units vest within three years from grant date. A summary of restricted stock unit activity as of December 31, 2014, and transactions during the years ended December 31, 2014, 2013 and 2012 is presented below: | ||||||||
Stock Incentive Plan | ||||||||
Shares | Weighted Average Price | |||||||
Nonvested at December 31, 2011 | 9,275 | $ | 42.99 | |||||
Granted | 11,115 | 45.24 | ||||||
Vested | (9,275 | ) | 42.97 | |||||
Nonvested at December 31, 2012 | 11,115 | 45.24 | ||||||
Granted | 52,650 | 52.34 | ||||||
Forfeited | (1,247 | ) | 48.36 | |||||
Nonvested at December 31, 2013 | 62,518 | 51.16 | ||||||
Granted | 48,904 | 71.91 | ||||||
Vested | (11,848 | ) | 65.94 | |||||
Nonvested at December 31, 2014 | 99,574 | $ | 59.6 | |||||
Energen recorded expense of $3.2 million, $1.9 million and $0.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, related to restricted stock units, with a related deferred income tax benefit of $1.2 million, $0.7 million and $23,000, respectively. As of December 31, 2014, there was $1.3 million of total unrecognized compensation cost related to nonvested restricted stock awards recorded in premium on capital stock. These awards have a remaining requisite service period of 1.46 years. | ||||||||
Stock Appreciation Rights Plan: The Energen Stock Appreciation Rights Plan provided for the payment of cash incentives measured by the long-term appreciation of Energen common stock. Officers of Energen are not eligible to participate in this Plan. These awards are liability awards which settle in cash and are remeasured each reporting period until settlement. These awards have a three year requisite service period. | ||||||||
A summary of stock appreciation rights activity as of December 31, 2014, and transactions during the years ended December 31, 2014, 2013 and 2012 are presented below: | ||||||||
Stock Appreciation Rights Plan | ||||||||
Shares | Weighted Average Exercise Price | |||||||
Outstanding at December 31, 2011 | 777,218 | $ | 42 | |||||
Exercised/forfeited | (124,188 | ) | 30.9 | |||||
Outstanding at December 31, 2012 | 653,030 | 44.14 | ||||||
Granted | 88,000 | 48.36 | ||||||
Exercised/forfeited | (363,653 | ) | 39.66 | |||||
Outstanding at December 31, 2013 | 377,377 | 49.48 | ||||||
Granted | 62,749 | 72.39 | ||||||
Exercised/forfeited | (164,976 | ) | 52.37 | |||||
Outstanding at December 31, 2014 | 275,150 | $ | 52.96 | |||||
Energen issued the following awards with stock appreciation rights. Energen uses the Black-Scholes pricing model to calculate the fair values of the options awarded. On December 19, 2013, we modified certain stock appreciation rights subsequent to the original grant date. For purposes of this valuation the following assumptions were used to derive the fair values as of December 31, 2014: | ||||||||
Grant date | 1/22/14 | 1/24/13 | 1/24/13 | 1/26/11 | 1/26/11 | |||
(modified) | (modified) | |||||||
Awards granted | 62,749 | 87,069 | 931 | 182,199 | 7,785 | |||
Fair market value of award | $18.63 | $25.93 | $20.14 | $19.15 | $16.27 | |||
Expected life of award | 5.56 years | 4.57 years | 2.0 years | 3.04 years | 2.0 years | |||
Risk-free interest rate | 1.77% | 1.57% | 0.65% | 1.12% | 0.65% | |||
Annualized volatility rate | 33.40% | 33.40% | 33.40% | 33.40% | 33.40% | |||
Dividend yield | 0.13% | 0.13% | 0.13% | 0.13% | 0.13% | |||
Grant date | 1/27/10 | 2/13-16/2009 | 1/28/09 | 2/4/08 | 2/1/07 | |||
Awards granted | 171,749 | 3,292 | 305,257 | 67,093 | 85,906 | |||
Fair market value of award | $22.50 | $33.23 | $34.66 | $10.57 | $19.25 | |||
Expected life of award | 2.54 years | 2.04 years | 2.04 years | 1.55 years | 1.04 years | |||
Risk-free interest rate | 0.90% | 0.67% | 0.67% | 0.45% | 0.26% | |||
Annualized volatility rate | 33.40% | 33.40% | 33.40% | 33.40% | 33.40% | |||
Dividend yield | 0.13% | 0.13% | 0.13% | 0.13% | 0.13% | |||
Income associated with stock appreciation rights of $0.4 million and $0.9 million was recorded for the years ended December 31, 2014 and 2012. Expense associated with stock appreciation rights of $9.9 million was recorded for the year ended 2013. During the year ended December 31, 2014, the total intrinsic value of stock appreciation rights exercised was $4.4 million. During the year ended December 31, 2014, Energen paid $3.0 million in settlement of stock appreciation rights. | ||||||||
Petrotech Incentive Plan: The Energen Resources’ Petrotech Incentive Plan provided for the grant of stock equivalent units which may include market conditions. Officers of Energen are not eligible to participate in this Plan. These awards are liability awards which are remeasured each reporting period and settle in cash at completion of the vesting period. Stock equivalent units with service conditions were valued based on Energen’s stock price at the end of the period adjusted to remove the present value of future dividends. | ||||||||
A summary of Petrotech unit activity as of December 31, 2014, and transactions during the years ended December 31, 2014, 2013 and 2012 are presented below: | ||||||||
Petrotech Incentive Plan | ||||||||
Shares | ||||||||
Outstanding at December 31, 2011 | 11,061 | |||||||
Granted (three-year vesting period) | 102,349 | |||||||
Granted (two-year vesting period) | 3,768 | |||||||
Granted (18 month vesting period) | 40,822 | |||||||
Paid | (3,281 | ) | ||||||
Forfeited | (13,476 | ) | ||||||
Outstanding at December 31, 2012 | 141,243 | |||||||
Granted (three-year vesting period) | 92,418 | |||||||
Granted (17 month vesting period) | 2,952 | |||||||
Paid | (36,792 | ) | ||||||
Forfeited | (26,529 | ) | ||||||
Outstanding at December 31, 2013 | 173,292 | |||||||
Granted | 76,084 | |||||||
Paid | (4,431 | ) | ||||||
Forfeited | (31,075 | ) | ||||||
Outstanding at December 31, 2014 | 213,870 | |||||||
None of the awards issued included a market condition. Energen Resources recognized expense of $4.5 million, $6.2 million and $2.6 million during 2014, 2013 and 2012, respectively, related to these units. | ||||||||
1997 Deferred Compensation Plan: The 1997 Deferred Compensation Plan allowed officers and non-employee directors to defer certain compensation. Amounts deferred by a participant under the 1997 Deferred Compensation Plan are credited to accounts maintained for a participant in either a stock account or an investment account. The stock account tracks the performance of Energen’s common stock, including reinvestment of dividends. The investment account tracks the performance of certain mutual funds. Energen has funded, and presently plans to continue funding, a trust in a manner that generally tracks participants’ accounts under the 1997 Deferred Compensation Plan. While intended for payment of benefits under the 1997 Deferred Compensation Plan, the trust’s assets remain subject to the claims of our creditors. Amounts earned under the 1997 Deferred Compensation Plan and invested in Energen common stock held by the trust have been recorded as treasury stock, along with the related deferred compensation obligation in the consolidated statements of shareholders’ equity. As of December 31, 2014 there were 691,222 shares reserved for issuance from the 1997 Deferred Compensation Plan. | ||||||||
1992 Energen Corporation Directors Stock Plan: In 1992 Energen adopted the Energen Corporation Directors Stock Plan to pay a portion of the compensation of its non-employee directors in shares of Energen common stock. Under the Plan, 10,360 shares, 13,500 shares and 11,120 shares were awarded during the years ended December 31, 2014, 2013 and 2012, respectively, leaving 127,924 shares reserved for issuance as of December 31, 2014. | ||||||||
Stock Repurchase Authorization: By resolution adopted October 22, 2014, the Board of Directors authorized Energen to repurchase up to 3,600,000 shares of Energen common stock, replacing and superseding its prior stock repurchase authorizations. The resolution does not have an expiration date and does not limit Energen’s authorization to acquire shares in connection with tax withholdings and payment of exercise price on stock compensation plans. For the year ended December 31, 2014, Energen repurchased and retired 226,839 shares for $14.9 million pursuant to our repurchase authorization. There were no shares repurchased pursuant to its repurchase authorization for the years ended December 31, 2013 and 2012. As of December 31, 2014, a total of 3,373,161 shares remain authorized for future repurchase. Energen also from time to time acquires shares in connection with participant elections under Energen’s stock compensation plans. For the years ended December 31, 2014, 2013 and 2012, Energen acquired 32,768 shares, 14,766 shares and 5,459 shares, respectively, in connection with its stock compensation plans. |
Derivative_Commodity_Instrumen
Derivative Commodity Instruments | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Derivative Commodity Instruments | DERIVATIVE COMMODITY INSTRUMENTS | ||||||||||||||||||
The following tables detail the offsetting of derivative assets and liabilities as well as the fair values of derivatives on the balance sheets: | |||||||||||||||||||
(in thousands) | 31-Dec-14 | ||||||||||||||||||
Gross Amounts Not Offset in the Balance Sheets | |||||||||||||||||||
Gross Amounts Recognized at Fair Value | Gross Amounts Offset in the Balance Sheets | Net Amount Presented in the Balance Sheets | Financial Instruments | Cash Collateral Received | Net Fair Value Presented in the Balance Sheets | ||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Assets | |||||||||||||||||||
Derivative instruments | $ | 339,977 | $ | (17,640 | ) | $ | 322,337 | $ | — | $ | — | $ | 322,337 | ||||||
Noncurrent derivative instruments | — | — | — | — | — | — | |||||||||||||
Total derivative assets | 339,977 | (17,640 | ) | 322,337 | — | — | 322,337 | ||||||||||||
Liabilities | |||||||||||||||||||
Derivative instruments | 18,628 | (17,640 | ) | 988 | — | — | 988 | ||||||||||||
Noncurrent derivative instruments | — | — | — | — | — | — | |||||||||||||
Total derivative liabilities | 18,628 | (17,640 | ) | 988 | — | — | 988 | ||||||||||||
Total derivatives | $ | 321,349 | $ | — | $ | 321,349 | $ | — | $ | — | $ | 321,349 | |||||||
(in thousands) | 31-Dec-13 | ||||||||||||||||||
Gross Amounts Not Offset in the Balance Sheets | |||||||||||||||||||
Gross Amounts Recognized at Fair Value | Gross Amounts Offset in the Balance Sheets | Net Amount Presented in the Balance Sheets | Financial Instruments | Cash Collateral Received | Net Fair Value Presented in the Balance Sheets | ||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Assets | |||||||||||||||||||
Derivative instruments | $ | 36,223 | $ | (18,760 | ) | $ | 17,463 | $ | — | $ | — | $ | 17,463 | ||||||
Noncurrent derivative instruments | 7,992 | (2,553 | ) | 5,439 | — | — | 5,439 | ||||||||||||
Total derivative assets | 44,215 | (21,313 | ) | 22,902 | — | — | 22,902 | ||||||||||||
Liabilities | |||||||||||||||||||
Derivative instruments | 49,062 | (18,760 | ) | 30,302 | — | — | 30,302 | ||||||||||||
Noncurrent derivative instruments | 2,553 | (2,553 | ) | — | — | — | — | ||||||||||||
Total derivative liabilities | 51,615 | (21,313 | ) | 30,302 | — | — | 30,302 | ||||||||||||
Total derivatives | $ | (7,400 | ) | $ | — | $ | (7,400 | ) | $ | — | $ | — | $ | (7,400 | ) | ||||
Energen had a net $8.2 million deferred tax liability included in current deferred income taxes on the balance sheets related to derivative items included in accumulated other comprehensive income as of December 31, 2013. | |||||||||||||||||||
Due to the volatility of commodity prices, the estimated fair value of our derivative instruments is subject to fluctuation from period to period, which could result in significant differences between the current estimated fair value and the ultimate settlement price. Additionally, Energen is at risk of economic loss based upon the creditworthiness of our counterparties. We were in a net gain position with thirteen of our active counterparties and in a net loss position with the remaining one at December 31, 2014. The largest counterparty net gain positions at December 31, 2014, J.P. Morgan Ventures Energy Corporation, Merrill Lynch Commodities, Inc., Barclays Bank PLC, Morgan Stanley Capital Group Inc., Canadian Imperial Bank of Commerce and Bank of Montreal, constituted approximately $58.5 million, $46.3 million, $39.0 million, $35.2 million, $34.9 million and $34.3 million, respectively, of Energen’s total net gain on fair value of derivatives. | |||||||||||||||||||
The following table details the effect of derivative commodity instruments in cash flow hedging relationships on the financial statements: | |||||||||||||||||||
Years ended December 31, (in thousands) | Location on Statements of Income | 2014 | 2013 | 2012 | |||||||||||||||
Net gain (loss) recognized in other comprehensive income on derivatives (effective portion), net of tax of $23, ($6,660) and $40,720 | — | $ | 37 | $ | (10,866 | ) | $ | 66,438 | |||||||||||
Gain reclassified from accumulated other comprehensive income into income (effective portion) | Gain (loss) on derivative instruments, net | $ | 21,612 | $ | 34,293 | $ | 52,694 | ||||||||||||
Gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Gain (loss) on derivative instruments, net | $ | — | $ | 835 | $ | (5,340 | ) | |||||||||||
The following table details the effect of open and closed derivative commodity instruments not designated as hedging instruments on the income statement: | |||||||||||||||||||
Years ended December 31, (in thousands) | Location on Statements of Income | 2014 | 2013 | 2012 | |||||||||||||||
Gain (loss) recognized in income on derivative | Gain (loss) on derivative instruments, net | $ | 313,408 | $ | (73,980 | ) | $ | 61,841 | |||||||||||
During 2013, we had a discontinuance of hedge accounting when Energen determined it was probable certain forecasted volumes would not occur due to certain properties being sold. This discontinuance of hedge accounting resulted in $1.5 million of after-tax losses being recognized into gain (loss) on derivative instruments, net during the year ended December 31, 2014. | |||||||||||||||||||
As of December 31, 2014, Energen entered into the following transactions for 2015 and subsequent years: | |||||||||||||||||||
Production Period | Total Hedged Volumes | Average Contract | Description | ||||||||||||||||
Price | |||||||||||||||||||
Oil | |||||||||||||||||||
2015 | 8,280 | MBbl | $89.30 Bbl | NYMEX Swaps | |||||||||||||||
Oil Basis Differential | |||||||||||||||||||
2015 | 2,160 | MBbl | $(4.30) Bbl | WTS/WTI Basis Swaps* | |||||||||||||||
2015 | 6,840 | MBbl | $(4.82) Bbl | WTI/WTI Basis Swaps** | |||||||||||||||
Natural Gas | |||||||||||||||||||
2015 | 23 | Bcf | $4.13 Mcf | Basin Specific Swaps - San Juan | |||||||||||||||
2015 | 8 | Bcf | $4.25 Mcf | Basin Specific Swaps - Permian | |||||||||||||||
*WTS - West Texas Sour/Midland, WTI - West Texas Intermediate/Cushing | |||||||||||||||||||
**WTI - West Texas Intermediate/Midland, WTI - West Texas Intermediate/Cushing | |||||||||||||||||||
As of December 31, 2014, the maximum term over which Energen has hedged exposures to the variability of cash flows is through December 31, 2015. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Fair Value Disclosures [Abstract] | ||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS | |||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||
Energen classifies the fair value of multiple derivative instruments executed under master netting arrangements as net derivative assets and liabilities. The following fair value hierarchy tables present information about Energen’s assets and liabilities measured at fair value on a recurring basis: | ||||||||||
December 31, 2014 | ||||||||||
(in thousands) | Level 2 | Level 3 | Total | |||||||
Assets | ||||||||||
Derivative instruments | $ | 294,865 | $ | 27,472 | $ | 322,337 | ||||
Total assets | 294,865 | 27,472 | 322,337 | |||||||
Liabilities | ||||||||||
Derivative instruments | 2,048 | (3,036 | ) | (988 | ) | |||||
Total liabilities | 2,048 | (3,036 | ) | (988 | ) | |||||
Net derivative asset | $ | 296,913 | $ | 24,436 | $ | 321,349 | ||||
December 31, 2013 | ||||||||||
(in thousands) | Level 2 | Level 3 | Total | |||||||
Assets | ||||||||||
Derivative instruments | $ | (1,658 | ) | $ | 19,121 | $ | 17,463 | |||
Noncurrent derivative instruments | 4,383 | 1,056 | 5,439 | |||||||
Total assets | 2,725 | 20,177 | 22,902 | |||||||
Liabilities | ||||||||||
Derivative instruments | (28,414 | ) | (1,888 | ) | (30,302 | ) | ||||
Total liabilities | (28,414 | ) | (1,888 | ) | (30,302 | ) | ||||
Net derivative asset (liability) | $ | (25,689 | ) | $ | 18,289 | $ | (7,400 | ) | ||
At December 31, 2014, Energen had interest rate swap agreements with a notional of $133 million. The interest rate swaps exchange a variable interest rate for a fixed interest rate of 1.0425 percent. The fair value of our interest rate swap was a $0.8 million and a $1.8 million liability at December 31, 2014 and 2013, respectively, and are classified as Level 2 fair value liabilities. The fair value of our interest rate swaps are recognized on a gross basis in accounts payable on the consolidated balance sheet. | ||||||||||
Energen prepared a sensitivity analysis to evaluate the hypothetical effect that changes in the prices used to estimate fair value would have on the fair value of its Level 3 instruments. We estimate that a 10 percent increase or decrease in commodity prices would result in an approximate $6.7 million change in the fair value of open Level 3 derivative contracts and to the results of operations. | ||||||||||
The table below sets forth a summary of changes in the fair value of Energen’s Level 3 derivative commodity instruments as follows: | ||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Balance at beginning of period | $ | 18,289 | $ | 89,019 | $ | 65,801 | ||||
Realized gains | 22,208 | 55,210 | 63,720 | |||||||
Unrealized gains (losses) relating to instruments held at the reporting date* | 2,981 | (71,367 | ) | 22,160 | ||||||
Settlements during period | (19,042 | ) | (54,573 | ) | (62,662 | ) | ||||
Balance at end of period** | $ | 24,436 | $ | 18,289 | $ | 89,019 | ||||
*Includes $20.2 million in mark-to-market gains, $7.6 million in mark-to-market losses and $19.9 million in mark-to-market gains for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
**Included in the Level 3 fair value at December 31, 2014 are gains of $3.2 million from natural gas liquids and Gas Daily contracts which were closed at December 31, 2014 but not cash settled. | ||||||||||
The tables below set forth quantitative information about Energen’s Level 3 fair value measurements of derivative commodity instruments as follows: | ||||||||||
(in thousands, except price data) | Fair Value as of December 31, 2014 | Valuation Technique* | Unobservable Input* | Range | ||||||
Oil Basis - WTS/WTI | ||||||||||
2015 | $ | (3,836 | ) | Discounted Cash Flow | Forward Basis | ($2.55 - $2.66) Bbl | ||||
Oil Basis - WTI/WTI | ||||||||||
2015 | $ | (14,419 | ) | Discounted Cash Flow | Forward Basis | ($2.72 - $2.82) Bbl | ||||
Natural Gas Basis - San Juan | ||||||||||
2015 | $ | 28,597 | Discounted Cash Flow | Forward Basis | ($0.13- $0.14) Mcf | |||||
Natural Gas Basis - Permian | ||||||||||
2015 | $ | 10,927 | Discounted Cash Flow | Forward Basis | ($0.15) Mcf | |||||
*Discounted cash flow represents an income approach in calculating fair value including the referenced unobservable input and a discount reflecting credit quality of the counterparty. | ||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||||||||
Certain assets and liabilities are reported at fair value on a nonrecurring basis in Energen’s consolidated balance sheets. The following methods and assumptions were used to estimate the fair values. | ||||||||||
Asset retirement obligations: Energen’s asset retirement obligations (ARO) primarily relate to the future plugging, abandonment and reclamation of wells and facilities. We recognize a liability for the fair value of the ARO in the periods incurred. See Note 12, Asset Retirement Obligations, for further discussion related to these ARO’s. These assumptions are classified as Level 3 fair value. | ||||||||||
Asset Impairments: Energen monitors our oil and natural gas properties as well as the market and business environments in which we operate and make assessments about events that could result in potential impairment issues. Such potential events may include, but are not limited to, substantial commodity price declines, unanticipated increased operating costs, and lower than expected field production performance. If a material event occurs, Energen makes an estimate of undiscounted future cash flows to determine whether the asset is impaired. If the asset is impaired, we will record an impairment loss for the difference between the net book value of the properties and the fair value of the properties. The fair value of the properties typically is estimated using discounted cash flows. Cash flow and fair value estimates require Energen to make projections and assumptions for pricing, demand, competition, operating costs, legal and regulatory issues, discount rates and other factors for many years into the future. | ||||||||||
These assumptions are classified as Level 3 fair value. See Note 13, Asset Impairment, for impairments recognized by Energen during the years ended December 31, 2014, 2013 and 2012 | ||||||||||
Financial Instruments Not Carried at Fair Value | ||||||||||
The stated value of cash and cash equivalents, short-term investments, accounts receivables (net of allowance), and short-term debt approximates fair value due to the short maturity of the instruments. The fair value of Energen’s long-term debt, including the current portion and notes payable to banks, approximates $993.7 million and $1,650.9 million and has a carrying value of $1,039.0 million and $1,643.0 million at December 31, 2014 and 2013, respectively. The fair values were based on market prices of similar issues having the same remaining maturities, redemption terms and credit rating. Short-term debt is classified as Level 1 fair value and long-term debt is classified as Level 2 fair value. | ||||||||||
Concentration of Credit Risk | ||||||||||
Revenues and related accounts receivable from oil and natural gas operations primarily are generated from the sale of produced oil and natural gas to energy marketing companies. Such sales are typically made on an unsecured credit basis with payment due the month following delivery. This concentration of sales to the energy marketing industry has the potential to affect Energen’s overall exposure to credit risk, either positively or negatively, in that our oil and natural gas purchasers may be affected similarly by changes in economic, industry or other conditions. Energen considers the credit quality of its purchasers and, in certain instances, may require credit assurances such as a deposit, letter of credit or parent guarantee. The two largest purchasers of Energen’s oil and natural gas, Plains Marketing, LP (Plains) and HollyFrontier Corporation (HollyFrontier), accounted for approximately 39 percent and 15 percent, respectively, of Energen’s accounts receivable for commodity sales as of December 31, 2014. Energen’s other purchasers each accounted for less than 9 percent of these accounts receivable as of December 31, 2014. During the year ended December 31, 2014, Plains and HollyFrontier accounted for approximately 37 percent and 13 percent, respectively, of total revenues. All other oil and natural gas purchasers each accounted for less than 10 percent of total revenues for the year ended December 31, 2014. |
Exploratory_Costs
Exploratory Costs | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Extractive Industries [Abstract] | ||||||||||
Exploratory Costs | EXPLORATORY COSTS | |||||||||
The following table sets forth capitalized exploratory well costs and includes additions pending determination of proved reserves, reclassifications to proved reserves and costs charged to expense: | ||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Capitalized exploratory well costs at beginning of period | $ | 57,600 | $ | 79,791 | $ | 70,437 | ||||
Additions pending determination of proved reserves | 946,751 | 421,599 | 406,226 | |||||||
Reclassifications due to determination of proved reserves | (882,254 | ) | (442,909 | ) | (396,872 | ) | ||||
Exploratory well costs charged to expense | (2,658 | ) | (881 | ) | — | |||||
Capitalized exploratory well costs at end of period | $ | 119,439 | $ | 57,600 | $ | 79,791 | ||||
The following table sets forth capitalized exploratory wells costs and includes amounts capitalized for a period greater than one year: | ||||||||||
(in thousands) | 31-Dec-14 | 31-Dec-13 | ||||||||
Exploratory wells in progress | $ | 18,781 | $ | 14,794 | ||||||
Capitalized exploratory well costs for a period of one year or less | 100,658 | 42,481 | ||||||||
Capitalized exploratory well costs for a period greater than one year | — | 1,206 | ||||||||
Total capitalized exploratory well costs | $ | 119,439 | $ | 58,481 | ||||||
At December 31, 2014, Energen had 38 gross exploratory wells either drilling or waiting on results from completion and testing. These wells are primarily located in the Permian Basin. |
Reconciliation_of_Earnings_Per
Reconciliation of Earnings Per Share | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||
Reconciliation of Earnings Per Share | RECONCILIATION OF EARNINGS PER SHARE | ||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Net | Shares | Per Share Amount | Net | Shares | Per Share Amount | Net | Shares | Per Share Amount | |||||||||||||||||
Income | Income | Income | |||||||||||||||||||||||
Basic EPS | $ | 568,032 | 72,897 | $ | 7.79 | $ | 204,554 | 72,318 | $ | 2.83 | $ | 253,562 | 72,119 | $ | 3.52 | ||||||||||
Effect of dilutive securities | |||||||||||||||||||||||||
Stock options | 216 | 112 | 196 | ||||||||||||||||||||||
Non-vested restricted stock | 58 | 20 | 1 | ||||||||||||||||||||||
Performance share awards | 104 | 21 | — | ||||||||||||||||||||||
Diluted EPS | $ | 568,032 | 73,275 | $ | 7.75 | $ | 204,554 | 72,471 | $ | 2.82 | $ | 253,562 | 72,316 | $ | 3.51 | ||||||||||
Energen had the following shares that were excluded from the computation of diluted EPS, as inclusion would be anti-dilutive. | |||||||||||||||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Stock options | 114 | 134 | 850 | ||||||||||||||||||||||
Non-vested restricted stock | 3 | 7 | — | ||||||||||||||||||||||
Performance share awards | 2 | 4 | — | ||||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | |||||
Commitments and Agreements: Under various agreements for third-party gathering, treatment, transportation or other services, Energen is committed to deliver minimum production volumes or to pay certain costs in the event the minimum quantities are not delivered. These delivery commitments are approximately 5.4 MMBOE through August 2017. | ||||||
Environmental Matters: Various environmental laws and regulations apply to the operations of Energen and Energen Resources. Historically, the cost of environmental compliance has not materially affected our financial position, results of operations or cash flows. New regulations, enforcement policies, claims for damages or other events could result in significant unanticipated costs. | ||||||
Under oversight of the Site Remediation Section of the Railroad Commission of Texas, Energen Resources is currently in the process of cleanup and remediation of oil and gas wastes in nine reserve pits in Mitchell County, Texas. We estimate that the cleanup, remediation and related costs will approximate $2.5 million of which $1.9 million has been incurred. | ||||||
During January 2014, Energen Resources responded to a General Notice and Information Request from the Environmental Protection Agency regarding the Reef Environmental Site in Sylacauga, Talladega County, Alabama. The letter identifies Energen Resources as a potentially responsible party under The Comprehensive Environmental Response, Compensation, and Liability Act for the cleanup of the Site. In 2008, Energen hired a third party to transport approximately 3,000 gallons of non-hazardous wastewater to Reef Environmental for wastewater treatment. Reef Environmental ceased operating its wastewater treatment system in 2010. Due to its one time use of Reef Environmental for a small volume of non-hazardous wastewater, Energen Resources has not accrued a liability for cleanup of the Site. | ||||||
Legal Matters: Energen and its affiliates are, from time to time, parties to various pending or threatened legal proceedings and we have accrued a provision for our estimated liability. Certain of these lawsuits include claims for punitive damages in addition to other specified relief. We recognize a liability for contingencies, including an estimate of legal costs to be incurred, when information available indicates both a loss is probable and the amount of the loss can be reasonably estimated. Based upon information presently available, and in light of available legal and other defenses, contingent liabilities arising from threatened and pending litigation are not considered material in relation to the respective financial positions of Energen and its affiliates. It should be noted, however, that there is uncertainty in the valuation of pending claims and prediction of litigation results. | ||||||
Energen Resources previously disclosed an adverse judgment relating to the ownership of the Company operated Cadenhead 25-1 Well (the Cadenhead Well) in Ward County, Texas. Upon a Motion to Reconsider, the adverse judgment was vacated by the District Court in Ward County, Texas and a Summary Judgment Order has been entered confirming Energen Resources’ superior title to the Cadenhead Well and its associated oil and gas leases. | ||||||
New Mexico Audits: In 2011, Energen Resources received an Order to Perform Restructured Accounting and Pay Additional Royalties (the Order), following an audit performed by the Taxation and Revenue Department (the Department) of the State of New Mexico on behalf of the Office of Natural Resources Revenue (ONRR), of federal oil and gas leases in New Mexico. The audit covered periods from January 2004 through December 2008 and included a review of the computation and payment of royalties due on minerals removed from specified U.S. federal leases. The Order addressed ONRR’s efforts to change accounting and reporting practices, and to unbundle fees charged by third parties that gather, compress and transport natural gas production. ONRR now maintains that all or some of such fees are not deductible. | ||||||
Energen Resources appealed the Order in 2011 and in July 2012, on a motion from ONRR, the Order was remanded. In August 2014, ONRR issued its Revised Order that is now under appeal. In the Revised Order, ONRR has ordered that Energen pay additional royalties on production from certain federal leases in the amount of $129,700. Energen estimates that application of the Revised Order to all of the Company’s federal leases would result in ONRR claims up to approximately $24 million, plus interest and penalties from 2004 forward. ONRR began implementing its unbundling initiative in 2010, but seeks to implement its revisions retroactively, despite the fact that they conflict with previous audits, allowances and industry practice. Energen continues to vigorously contest the Revised Order and the findings. Management is unable, at this time, to determine a range of reasonably possible losses, and no amount has been accrued as of December 31, 2014. | ||||||
Lease Obligations: Energen’s total lease payments included as operating lease expense were $24.1 million, $25.0 million and $20.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. Minimum future rental payments required after 2014 under leases with initial or remaining noncancelable lease terms in excess of one year are as follows: | ||||||
Years Ending December 31, (in thousands) | ||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 and thereafter | |
$2,698 | $2,676 | $2,468 | $2,429 | $2,326 | $— |
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ||||
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS | |||
Energen’s asset retirement obligations primarily relate to the future plugging, abandonment and reclamation of wells and facilities. We recognize a liability for the fair value of the ARO in the periods incurred. The ARO fair value liability is determined by calculating the present value of the estimated future cash outflows we expect to incur to plug, abandon and reclaim our producing properties at the end of their productive lives, and is recognized on a discounted basis incorporating an estimate of performance risk specific to Energen. Subsequent to initial measurement, liabilities are accreted to their present value and capitalized costs are depreciated over the estimated useful lives of the related assets. Upon settlement of the liability, Energen may recognize a gain or loss for differences between estimated and actual settlement costs. | ||||
The following table reflects the components of the change in Energen’s ARO balance: | ||||
(in thousands) | ||||
Balance as of December 31, 2011 | $ | 107,340 | ||
Liabilities incurred | 3,994 | |||
Liabilities settled | (845 | ) | ||
Accretion expense (including discontinued operations of $1,195) | 7,534 | |||
Balance as of December 31, 2012 | 118,023 | |||
Liabilities incurred | 2,772 | |||
Liabilities settled | (5,525 | ) | ||
Accretion expense (including discontinued operations of $1,197) | 8,192 | |||
Reclassification associated with held for sale properties* | (14,929 | ) | ||
Balance as of December 31, 2013 | 108,533 | |||
Liabilities incurred | 2,266 | |||
Liabilities settled | (1,543 | ) | ||
Accretion expense (including discontinued operations of $251) | 7,859 | |||
Revision in estimated cash flows | 692 | |||
Reclassification associated with held for sale properties** | (23,747 | ) | ||
Balance as of December 31, 2014 | $ | 94,060 | ||
*Asset retirement obligation associated with North Louisiana/East Texas properties are included as liabilities related to assets held for sale in current liabilities on the balance sheet. | ||||
**Asset retirement obligation associated with certain San Juan Basin properties are included as liabilities related to assets held for sale in current liabilities on the balance sheet. |
Asset_Impairment
Asset Impairment | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Asset Impairment Charges | ASSET IMPAIRMENT | |||||||||
Impairments recognized by Energen during the years ended December 31, 2014, 2013 and 2012 are presented below: | ||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Continuing operations | ||||||||||
Permian Basin oil properties | $ | 125,693 | $ | — | $ | — | ||||
Permian Basin unproved leasehold properties | 55,063 | 13,906 | 6,304 | |||||||
San Juan Basin natural gas properties | 236,045 | — | — | |||||||
Total asset impairments from continuing operations | 416,801 | 13,906 | 6,304 | |||||||
Discontinued operations | ||||||||||
North Louisiana/East Texas oil and natural gas properties | 1,936 | 29,794 | — | |||||||
East Texas oil and natural gas properties | — | — | 21,545 | |||||||
Total asset impairments from discontinued operations | 1,936 | 29,794 | 21,545 | |||||||
Total asset impairments | $ | 418,737 | $ | 43,700 | $ | 27,849 | ||||
During the third and fourth quarters of 2014, Energen recognized non-cash impairment writedowns on certain properties in the Permian Basin of $31.2 million pre-tax and $94.5 million pre-tax, respectively, to adjust the carrying amount of these properties to their fair value based on expected future discounted cash flows. These non-cash impairment writedowns are reflected in asset impairment on the consolidated income statement. | ||||||||||
Energen recognized unproved leasehold writedowns primarily on Permian Basin oil properties of $55.1 million pre-tax during the fourth quarter of 2014. These non-cash writedowns are reflected in asset impairment on the consolidated income statement. | ||||||||||
During the third and fourth quarters of 2014, non-cash impairment writedowns of $147.9 million pre-tax and $88.1 million pre-tax, respectively, were recognized by Energen on certain natural gas properties in the San Juan Basin to adjust the carrying amount of these properties to their fair value based on expected future discounted cash flows in the third quarter and based on direct market data in the fourth quarter as these properties were designated as held for sale as of December 31, 2014. These non-cash impairment writedowns are reflected in asset impairment on the consolidated income statement. At December 31, 2014, proved reserves associated with Energen’s San Juan Basin properties totaled 69,043 MBOE. | ||||||||||
In March 2014, Energen completed the sale of its North Louisiana/East Texas natural gas and oil properties for $30.3 million. The sale had an effective date of December 1, 2013, and the proceeds from the sale were used to repay short-term obligations. During the third quarter of 2013, Energen classified these primarily natural gas properties as held for sale and reflected the associated operating results in discontinued operations. Energen recognized non-cash impairment writedowns on these properties in 2014 of $1.9 million pre-tax to adjust the carrying amount of these properties to their fair value based on an estimate of the selling price of the properties. These non-cash impairment writedowns are reflected in gain on disposal of discontinued operations, net in the year ended December 31, 2014. Energen also recognized non-cash impairment writedowns on these properties in the third and fourth quarters of 2013 of $24.6 million pre-tax and $5.2 million pre-tax, respectively. These non-cash impairment writedowns are reflected in gain on disposal of discontinued operations, net in the year ended December 31, 2013. Significant assumptions in valuing the proved reserves included the reserve quantities, anticipated operating costs, anticipated production taxes, future expected natural gas prices and basis differentials, anticipated production declines, and a discount rate of 10 percent commensurate with the risk of the underlying cash flow estimates. The impairment writedowns are classified as Level 3 fair value. At December 31, 2013, proved reserves associated with Energen’s North Louisiana/East Texas properties totaled 23 Bcf of natural gas and 91 MBbl of oil. | ||||||||||
In October 2013, Energen completed the sale of its Black Warrior Basin coalbed methane properties in Alabama for $160 million (subject to closing adjustments). Energen recorded a pre-tax gain on the sale of approximately $35 million in the fourth quarter of 2013 which was reflected in gain on disposal of discontinued operations in the year ended December 31, 2013. The sale had an effective date of July 1, 2013, and the proceeds from the sale were used to repay short-term obligations. The property was classified as held for sale and reflected in discontinued operations during the third quarter of 2013. At December 31, 2012, proved reserves associated with Energen’s Black Warrior Basin properties totaled 97 Bcf of natural gas. | ||||||||||
During the first quarter of 2012, Energen recognized a non-cash impairment writedown on certain properties in East Texas of $21.5 million pre-tax to adjust the carrying amount of these properties to their fair value based on expected future discounted cash flows. This non-cash impairment writedown is reflected in income from discontinued operations for the year ended December 31, 2012. The impairment was caused by the impact of lower future natural gas prices. This impairment writedown is classified as Level 3 fair value. |
Acquisition_and_Disposition_of
Acquisition and Disposition of Properties | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Acquisition and Dispositions of Oil and Gas Properties [Abstract] | ||||
Acquisition and Disposition of Properties | ACQUISITION AND DISPOSITION OF PROPERTIES | |||
In February 2015, Energen entered into a purchase and sale agreement to sell the majority of its natural gas assets in the San Juan Basin in New Mexico and Colorado for approximately $395 million. This sale is expected to close March 31, 2015, and have an effective date of January 1, 2015. At December 31, 2014, proved reserves associated with these San Juan Basin properties totaled 69,043 MBOE. | ||||
During 2014, Energen completed a total of approximately $68.5 million in various purchases of unproved leasehold properties, including the October 2014, purchase of approximately 15,000 net acres of unproved leasehold in the Mancos formation oil play in the San Juan Basin for $22.8 million. During 2013, Energen also completed a total of approximately $26.8 million in various purchases of unproved leasehold properties. | ||||
On February 21, 2012, Energen Resources entered into a definitive agreement with BHP Billiton (BHP) to buy a 50 percent undivided interest in three existing wells in Reeves County, Texas, from Energen Resources for approximately $18 million. Following the purchase of the wells, BHP completed two of the wells and earned a 50 percent undivided interest in 4,829 net acres. The agreement also included the option for BHP to purchase from Energen Resources a 50 percent undivided interest in 51,720 net acres in the Permian Basin. On May 1, 2012, BHP elected not to exercise the option. | ||||
On February 14, 2012, Energen completed the purchase of certain properties in the Permian Basin for a cash purchase price of $68 million. This purchase had an effective date of December 1, 2011. Energen acquired total proved reserves of approximately 8.2 MMBOE. Of the proved reserves acquired, an estimated 81 percent are undeveloped. Approximately 64 percent of the proved reserves are oil, 22 percent are natural gas liquids and natural gas comprises the remaining 14 percent. Energen Resources used its credit facilities and internally generated cash flows to finance the acquisition. Pro forma financial information for this acquisition is not presented because it would not be materially different from the information presented in the consolidated statements of income. | ||||
The following table summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed recognized as of February 14, 2012 (including the effects of closing adjustments). | ||||
(in thousands) | ||||
Consideration given | ||||
Cash (net) | $ | 67,615 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Proved properties | $ | 65,581 | ||
Unproved leasehold properties | 911 | |||
Accounts receivable | 1,358 | |||
Accounts payable | (25 | ) | ||
Asset retirement obligation | (210 | ) | ||
Total identifiable net assets | $ | 67,615 | ||
Included in the Company’s consolidated results of operations for the year ended December 31, 2012, were $11.7 million of operating revenues and $3.1 million in operating income resulting from the operation of the properties acquired above. | ||||
In December 2012, Energen completed the purchase of liquids-rich properties in the Permian Basin for a cash purchase price of approximately $18.7 million. During 2012, Energen also completed a total of approximately $18 million in various purchases of unproved leasehold properties. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS AND HELD FOR SALE PROPERTIES | ||||||||||||
On September 2, 2014, Energen completed the transaction to sell Alagasco to Laclede for $1.6 billion, less the assumption of $267 million in debt. The net pre-tax proceeds to Energen totaled approximately $1.32 billion resulting in a pre-tax gain of $726.5 million. This sale has an effective date of August 31, 2014. Energen used cash proceeds from the sale to reduce long-term and short-term indebtedness. During the second quarter of 2014, Energen classified Alagasco as held for sale and reflected the associated operating results in discontinued operations. Energen’s results of operations and cash flows for the years ended December 31, 2014, 2013 and 2012 and our financial position as of December 31, 2014 and 2013 presented in our consolidated financial statements and these notes reflect Alagasco as discontinued operations. | |||||||||||||
In March 2014, Energen completed the sale of its North Louisiana/East Texas natural gas and oil properties for $30.3 million. The sale had an effective date of December 1, 2013, and the proceeds from the sale were used to repay short-term obligations. During the third quarter of 2013, Energen classified these primarily natural gas properties as held for sale and reflected the associated operating results in discontinued operations. Energen recognized non-cash impairment writedowns on these properties in 2014 of $1.9 million pre-tax to adjust the carrying amount of these properties to their fair value based on an estimate of the selling price of the properties. These non-cash impairment writedowns are reflected in gain on disposal of discontinued operations, net in the year ended December 31, 2014. Energen also recognized non-cash impairment writedowns on these properties in the third and fourth quarters of 2013 of $24.6 million pre-tax and $5.2 million pre-tax, respectively. These non-cash impairment writedowns are reflected in gain on disposal of discontinued operations, net in the year ended December 31, 2013. At December 31, 2013, proved reserves associated with Energen’s North Louisiana/East Texas properties totaled 23 Bcf of natural gas and 91 MBbl of oil. | |||||||||||||
In October 2013, Energen completed the sale of its Black Warrior Basin coalbed methane properties in Alabama for $160 million (subject to closing adjustments). Energen recorded a pre-tax gain on the sale of approximately $35 million in the fourth quarter of 2013 that was reflected in gain on disposal of discontinued operations in the year ended December 31, 2013. The sale had an effective date of July 1, 2013, and the proceeds from the sale were used to repay short-term obligations. The property was classified as held for sale and reflected in discontinued operations during the third quarter of 2013. At December 31, 2012, proved reserves associated with Energen’s Black Warrior Basin properties totaled 97 Bcf of natural gas. | |||||||||||||
As discussed in Note 14, Acquisition and Disposition of Properties, and above, the following tables detail held for sale properties by major classes of assets and liabilities: | |||||||||||||
(in thousands) | 31-Dec-14 | ||||||||||||
San Juan Basin* | |||||||||||||
Oil and natural gas properties | $ | 1,166,124 | |||||||||||
Less accumulated depreciation, depletion and amortization | (770,327 | ) | |||||||||||
Total assets held for sale | 395,797 | ||||||||||||
Other long-term liabilities | (24,230 | ) | |||||||||||
Total liabilities held for sale | (24,230 | ) | |||||||||||
Total net assets held for sale | $ | 371,567 | |||||||||||
*The San Juan Basin natural gas assets which are held for sale as of December 31, 2014, do not qualify for discontinued operations as we will have ongoing operations in the San Juan Basin. | |||||||||||||
(in thousands) | 31-Dec-13 | ||||||||||||
Alabama Gas Corporation | Black Warrior Basin | North Louisiana/East Texas | Total | ||||||||||
Cash | $ | 3,032 | $ | — | $ | — | $ | 3,032 | |||||
Accounts receivable* | 103,748 | 2,829 | 1,272 | 107,849 | |||||||||
Inventories | 41,200 | — | 68 | 41,268 | |||||||||
Oil and natural gas properties | — | — | 348,379 | 348,379 | |||||||||
Less accumulated depreciation, depletion and amortization | — | (301,609 | ) | (301,609 | ) | ||||||||
Utility plant | 1,491,433 | — | — | 1,491,433 | |||||||||
Less accumulated depreciation | (605,924 | ) | — | — | (605,924 | ) | |||||||
Other property, net | 41 | — | 165 | 206 | |||||||||
Other current assets* | 29,458 | — | — | 29,458 | |||||||||
Other long-term assets | 128,780 | — | — | 128,780 | |||||||||
Total assets held for sale | 1,191,768 | 2,829 | 48,275 | 1,242,872 | |||||||||
Accounts payable | (48,653 | ) | (1,732 | ) | (11 | ) | (50,396 | ) | |||||
Royalty payable | — | (550 | ) | (869 | ) | (1,419 | ) | ||||||
Accrued taxes | (28,027 | ) | — | — | (28,027 | ) | |||||||
Notes payable to banks | (50,000 | ) | — | — | (50,000 | ) | |||||||
Other current liabilities* | (105,013 | ) | (379 | ) | (21 | ) | (105,413 | ) | |||||
Other long-term liabilities | (331,409 | ) | — | (14,983 | ) | (346,392 | ) | ||||||
Long-term debt | (249,923 | ) | — | — | (249,923 | ) | |||||||
Total liabilities held for sale | (813,025 | ) | (2,661 | ) | (15,884 | ) | (831,570 | ) | |||||
Total net assets held for sale | $ | 378,743 | $ | 168 | $ | 32,391 | $ | 411,302 | |||||
*At December 31, 2013, Alagasco’s accounts receivable included a consolidating adjustment of $4.7 million to adjust for affiliated companies receivables. Certain other current assets and other current liabilities at Alagasco of $1.6 million and $0.5 million, respectively, were reclassified to continuing operations at Energen. | |||||||||||||
We recognized interest on debt required to be extinguished in connection with the sale of Alagasco as discontinued operations. On September 2, 2014, Energen entered into a $1.5 billion five-year syndicated secured credit facility with domestic and foreign lenders. The credit facility was amended to $2.0 billion on November 17, 2014. This credit facility refinances and replaces the $1.25 billion five-year syndicated unsecured credit facility entered into on October 30, 2012. The interest associated with the October 2012 five-year syndicated unsecured credit facilities was classified as discontinued operations. See Note 2, Summary of Significant Accounting Policies, for further information regarding adjustments associated with the sale of Alagasco. | |||||||||||||
During the first quarter of 2012, Energen recognized a non-cash impairment writedown on certain properties in East Texas of $21.5 million pre-tax to adjust the carrying amount of these properties to their fair value based on expected future discounted cash flows. This non-cash impairment writedown is reflected in income from discontinued operations for the year ended December 31, 2012. The impairment was caused by the impact of lower future natural gas prices. This impairment writedown is classified as Level 3 fair value. | |||||||||||||
Years ended December 31, (in thousands, except per share data) | 2014 | 2013 | 2012 | ||||||||||
Natural gas distribution revenues | $ | 397,648 | $ | 533,338 | $ | 451,589 | |||||||
Oil and natural gas revenues | 5,199 | 60,191 | 76,350 | ||||||||||
Total revenues | $ | 402,847 | $ | 593,529 | $ | 527,939 | |||||||
Pretax income from discontinued operations | $ | 47,220 | $ | 92,253 | $ | 79,197 | |||||||
Income tax expense | 17,928 | 33,174 | 30,256 | ||||||||||
Income From Discontinued Operations | $ | 29,292 | $ | 59,079 | $ | 48,941 | |||||||
Gain on disposal of discontinued operations, net | $ | 724,594 | $ | 5,605 | $ | — | |||||||
Income tax expense | 285,497 | 2,011 | — | ||||||||||
Gain on Disposal of Discontinued Operations, net | $ | 439,097 | $ | 3,594 | $ | — | |||||||
Total Income From Discontinued Operations | $ | 468,389 | $ | 62,673 | $ | 48,941 | |||||||
Diluted Earnings Per Average Common Share | |||||||||||||
Income from discontinued operations | $ | 0.4 | $ | 0.81 | $ | 0.68 | |||||||
Gain on disposal of discontinued operations, net | 5.99 | 0.05 | — | ||||||||||
Total Income From Discontinued Operations | $ | 6.39 | $ | 0.86 | $ | 0.68 | |||||||
Basic Earnings Per Average Common Share | |||||||||||||
Income from discontinued operations | $ | 0.4 | $ | 0.82 | $ | 0.68 | |||||||
Gain on disposal of discontinued operations, net | 6.02 | 0.05 | — | ||||||||||
Total Income From Discontinued Operations | $ | 6.42 | $ | 0.87 | $ | 0.68 | |||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||
Supplemental information concerning Energen’s cash flow activities from continuing operations was as follows: | ||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Interest paid, net of amount capitalized | $ | 32,172 | $ | 38,255 | $ | 46,224 | ||||
Income taxes paid | $ | 219,505 | $ | 22,781 | $ | 18,023 | ||||
Noncash investing activities: | ||||||||||
Accrued development, exploration costs and other capital | $ | 207,461 | $ | 93,623 | $ | 116,488 | ||||
Capitalized asset retirement obligations costs | $ | 2,958 | $ | 2,772 | $ | 3,994 | ||||
Capital lease obligations | $ | — | $ | — | $ | 5,072 | ||||
Receivable from sale of Alabama Gas Corporation | $ | 8,247 | $ | — | $ | — | ||||
Noncash financing activities: | ||||||||||
Issuance of common stock for employee benefit plans | $ | 2,448 | $ | 1,015 | $ | 838 | ||||
Treasury stock acquired in connection with tax withholdings | $ | 2,547 | $ | 977 | $ | 277 | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Equity [Abstract] | ||||||||||
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||
The following table provides changes in the components of accumulated other comprehensive income (loss), net of the related income tax effects. | ||||||||||
(in thousands) | Cash Flow Hedges | Pension and Postretirement Plans | Total | |||||||
Balance as of December 31, 2013 | $ | 12,178 | $ | (32,245 | ) | $ | (20,067 | ) | ||
Other comprehensive loss before reclassifications | (261 | ) | (5,056 | ) | (5,317 | ) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (11,917 | ) | 14,431 | 2,514 | ||||||
Change in accumulated other comprehensive income (loss) | (12,178 | ) | 9,375 | (2,803 | ) | |||||
Balance as of December 31, 2014 | $ | — | $ | (22,870 | ) | $ | (22,870 | ) | ||
The following table provides details of the reclassifications out of accumulated other comprehensive income (loss). | ||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | ||||||||
(in thousands) | Amounts Reclassified | Line Item Where Presented | ||||||||
Gains (losses) on cash flow hedges: | ||||||||||
Commodity contracts | $ | 21,611 | $ | 35,684 | Gain (loss) on derivative instruments, net | |||||
Interest rate swap | (2,280 | ) | (1,723 | ) | Interest expense | |||||
Total cash flow hedges | 19,331 | 33,961 | ||||||||
Income tax expense | (7,414 | ) | (12,957 | ) | ||||||
Net of tax | 11,917 | 21,004 | ||||||||
Pension and postretirement plans: | ||||||||||
Transition obligation | (22 | ) | (319 | ) | General and administrative | |||||
Prior service cost | (248 | ) | (257 | ) | General and administrative | |||||
Actuarial losses* | (21,932 | ) | (12,357 | ) | General and administrative | |||||
Actuarial losses on settlement charges* | — | (421 | ) | Assets held for sale | ||||||
Total pension and postretirement plans | (22,202 | ) | (13,354 | ) | ||||||
Income tax benefit | 7,771 | 4,674 | ||||||||
Net of tax | (14,431 | ) | (8,680 | ) | ||||||
Total reclassifications for the period | $ | (2,514 | ) | $ | 12,324 | |||||
*In the first quarter of 2013, Energen incurred a settlement charge of $0.5 million for the payment of lump sums from the nonqualified supplemental retirement plans, of which $0.1 million was recognized in actuarial losses above and $0.4 million was recognized as a regulatory asset at Alagasco and reported in actuarial losses on settlement charges above. In the third quarter of 2013, Energen incurred a settlement charge of $64,000 for the payment of lump sums from the nonqualified supplemental retirement plans, of which $18,000 was recognized in actuarial losses above and $46,000 was recognized as a regulatory asset at Alagasco and reported in actuarial losses on settlement charges above. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | RECENTLY ISSUED ACCOUNTING STANDARDS |
In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update defines a discontinued operation as a disposal of a component or a group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The amendment is effective for all annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. Energen does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. |
Summarized_Quarterly_Financial
Summarized Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||
Summarized Quarterly Financial Information (Unaudited) | SUMMARIZED QUARTERLY FINANCIAL DATA (Unaudited) | ||||||||||||
The following data summarizes quarterly operating results. | |||||||||||||
Year ended December 31, 2014 | |||||||||||||
(in thousands, except per share amounts) | First | Second | Third | Fourth | |||||||||
Revenues as originally reported | $ | 561,178 | $ | 270,097 | $ | 497,761 | $ | 611,435 | |||||
Discontinued operations* | (263,900 | ) | — | — | — | ||||||||
Adjusted revenues | $ | 297,278 | $ | 270,097 | $ | 497,761 | $ | 611,435 | |||||
Operating income as originally reported | $ | 104,599 | $ | 3,107 | $ | 48,171 | $ | 94,223 | |||||
Discontinued operations* | (73,139 | ) | — | — | — | ||||||||
Adjusted operating income | $ | 31,460 | $ | 3,107 | $ | 48,171 | $ | 94,223 | |||||
Income (loss) from continuing operations | $ | 15,647 | $ | (3,154 | ) | $ | 20,631 | $ | 66,519 | ||||
Net income (loss) | $ | 53,316 | $ | (7,953 | ) | $ | 457,251 | $ | 65,418 | ||||
Diluted earnings per average common share | |||||||||||||
Continuing operations | $ | 0.21 | $ | (0.04 | ) | $ | 0.28 | $ | 0.91 | ||||
Net income (loss) | $ | 0.73 | $ | (0.11 | ) | $ | 6.22 | $ | 0.89 | ||||
Basic earnings per average common share | |||||||||||||
Continuing operations | $ | 0.22 | $ | (0.04 | ) | $ | 0.28 | $ | 0.91 | ||||
Net income (loss) | $ | 0.73 | $ | (0.11 | ) | $ | 6.26 | $ | 0.9 | ||||
Year ended December 31, 2013 | |||||||||||||
(in thousands, except per share amounts) | First | Second | Third | Fourth | |||||||||
Revenues as originally reported | $ | 492,679 | $ | 490,057 | $ | 320,406 | $ | 472,733 | |||||
Discontinued operations* | (256,348 | ) | (123,076 | ) | (48,368 | ) | (142,771 | ) | |||||
Adjusted revenues | $ | 236,331 | $ | 366,981 | $ | 272,038 | $ | 329,962 | |||||
Operating income as originally reported | $ | 105,336 | $ | 146,304 | $ | (4,052 | ) | $ | 110,630 | ||||
Discontinued operations* | (84,146 | ) | (7,667 | ) | 21,487 | (35,755 | ) | ||||||
Adjusted operating income | $ | 21,190 | $ | 138,637 | $ | 17,435 | $ | 74,875 | |||||
Income from continuing operations | $ | 8,419 | $ | 82,422 | $ | 5,407 | $ | 45,633 | |||||
Net income (loss) | $ | 56,692 | $ | 83,067 | $ | (19,298 | ) | $ | 84,093 | ||||
Diluted earnings per average common share | |||||||||||||
Continuing operations | $ | 0.12 | $ | 1.14 | $ | 0.07 | $ | 0.62 | |||||
Net income (loss) | $ | 0.78 | $ | 1.15 | $ | (0.27 | ) | $ | 1.15 | ||||
Basic earnings per average common share | |||||||||||||
Continuing operations | $ | 0.12 | $ | 1.14 | $ | 0.07 | $ | 0.63 | |||||
Net income (loss) | $ | 0.79 | $ | 1.15 | $ | (0.27 | ) | $ | 1.16 | ||||
*As discussed in Note 15, Discontinued Operations and Held for Sale Properties, during the third quarter of 2014, Energen completed the transaction to sell Alagasco to Laclede. During the second quarter of 2014, Energen classified Alagasco as held for sale and reflected the associated operating results in discontinued operations. During the fourth quarter of 2013, Energen completed the sale of its Black Warrior Basin coalbed methane properties in Alabama. The property was classified as held for sale and reflected in discontinued operations during the third quarter of 2013. Also, during the third quarter of 2013, Energen classified its North Louisiana/East Texas natural gas and oil properties as held for sale and reflected the associated operating results in discontinued operations. |
Oil_and_Natural_Gas_Operations
Oil and Natural Gas Operations (Unaudited) Oil and Natural Gas Operations (Unaudited) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||||||||||
Oil and Natural Gas Operations (Unaudited) | OIL AND NATURAL GAS OPERATIONS (Unaudited) | |||||||||
Capitalized Costs: The following table sets forth capitalized costs: | ||||||||||
(in thousands) | December 31, 2014 | December 31, 2013 | ||||||||
Proved | $ | 8,069,638 | $ | 7,043,779 | ||||||
Unproved | 142,340 | 168,975 | ||||||||
Total capitalized costs | 8,211,978 | 7,212,754 | ||||||||
Accumulated depreciation, depletion and amortization | 2,663,434 | 2,078,411 | ||||||||
Capitalized costs, net | $ | 5,548,544 | $ | 5,134,343 | ||||||
Costs Incurred: The following table sets forth costs incurred in property acquisition, exploration and development activities and includes both capitalized costs and costs charged to expense during the year: | ||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Property acquisition: | ||||||||||
Proved | $ | 2,582 | $ | 4,661 | $ | 79,862 | ||||
Unproved | 68,514 | 26,820 | 58,634 | |||||||
Exploration | 972,164 | 435,636 | 419,284 | |||||||
Development | 408,949 | 655,353 | 749,256 | |||||||
Total costs incurred | $ | 1,452,209 | $ | 1,122,470 | $ | 1,307,036 | ||||
Results of Operations From Producing Activities: The following table sets forth results of Energen’s oil, natural gas liquids and natural gas operations from producing activities: | ||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Gross revenues* | $ | 1,679,213 | $ | 1,206,293 | $ | 1,090,948 | ||||
Production (lifting costs) | 376,495 | 351,541 | 278,193 | |||||||
Exploration expense | 28,090 | 14,036 | 13,052 | |||||||
Depreciation, depletion and amortization including asset impairments | 960,539 | 463,606 | 345,873 | |||||||
Accretion expense | 7,608 | 6,995 | 6,339 | |||||||
Income tax expense | 99,469 | 128,773 | 160,551 | |||||||
Results of operations from producing activities | $ | 207,012 | $ | 241,342 | $ | 286,940 | ||||
* The years ended December 31, 2014, 2013 and 2012 gross revenues include a pre-tax non-cash mark-to-market gain on derivatives of $315.4 million, a pre-tax non-cash mark-to-market loss on derivatives of $47.8 million and a pre-tax non-cash mark-to-market gain on derivatives of $58.8 million, respectively. | ||||||||||
Oil and Natural Gas Operations: The calculation of proved reserves is made pursuant to rules prescribed by the SEC. Such rules, in part, require that proved categories of reserves be disclosed. Proved reserves and associated values were calculated using twelve-month average prices and current costs for the years ended December 31, 2014, 2013 and 2012. Changes to prices and costs could have a significant effect on the disclosed amount of proved reserves and their associated values. In addition, the estimation of proved reserves inherently requires the use of geologic and engineering estimates which are subject to revision as reservoirs are produced and developed and as additional information is available. Accordingly, the amount of actual future production may vary significantly from the amount of proved reserves disclosed. The proved reserves are located onshore in the United States of America. | ||||||||||
Estimates of physical quantities of oil and natural gas proved reserves were determined by Company engineers. Ryder Scott Company, L.P. (Ryder Scott) and T. Scott Hickman and Associates, Inc. (T. Scott Hickman), independent oil and natural gas reservoir engineers, have audited the estimates of proved reserves of oil, natural gas liquids and natural gas that Energen has attributed to its net interests in oil and natural gas properties as of December 31, 2014. Ryder Scott audited the proved reserve estimates for coalbed methane in the San Juan Basin and substantially all of the Permian Basin proved reserves. T. Scott Hickman audited the conventional proved reserves in the San Juan Basin. The independent reservoir engineers have issued reports covering approximately 99 percent of Energen’s ending proved reserves indicating that in their judgment the estimates are reasonable in the aggregate. | ||||||||||
Year ended December 31, 2014 | Oil MBbl | NGL MBbl | Natural Gas MMcf | Total MMBOE | ||||||
Proved reserves at beginning of period | 164,870 | 63,011 | 719,725 | 347.8 | ||||||
Revisions of previous estimates | (48,548 | ) | (15,165 | ) | (71,806 | ) | (75.7 | ) | ||
Purchases | 88 | 26 | 116 | 0.1 | ||||||
Extensions and discoveries | 76,722 | 29,695 | 141,209 | 130 | ||||||
Production | (11,818 | ) | (4,104 | ) | (59,562 | ) | (25.8 | ) | ||
Sales | (87 | ) | — | (21,756 | ) | (3.7 | ) | |||
Proved reserves at end of period | 181,227 | 73,463 | 707,926 | 372.7 | ||||||
Proved developed reserves at end of period | 118,697 | 47,621 | 589,074 | 264.5 | ||||||
Proved undeveloped reserves at end of period | 62,530 | 25,842 | 118,852 | 108.2 | ||||||
Year ended December 31, 2013 | Oil MBbl | NGL MBbl | Natural Gas MMcf | Total MMBOE | ||||||
Proved reserves at beginning of period | 155,348 | 56,155 | 809,128 | 346.4 | ||||||
Revisions of previous estimates | (680 | ) | 2,211 | 18,465 | 4.6 | |||||
Purchases | 142 | 56 | 282 | 0.2 | ||||||
Extensions and discoveries | 20,517 | 7,823 | 50,568 | 36.8 | ||||||
Production | (10,378 | ) | (3,233 | ) | (70,506 | ) | (25.4 | ) | ||
Sales | (79 | ) | (1 | ) | (88,212 | ) | (14.8 | ) | ||
Proved reserves at end of period | 164,870 | 63,011 | 719,725 | 347.8 | ||||||
Proved developed reserves at end of period | 113,795 | 42,087 | 623,305 | 259.8 | ||||||
Proved undeveloped reserves at end of period | 51,075 | 20,924 | 96,420 | 88 | ||||||
Year ended December 31, 2012 | Oil MBbl | NGL MBbl | Natural Gas MMcf | Total MMBOE | ||||||
Proved reserves at beginning of period | 129,578 | 53,957 | 957,368 | 343.1 | ||||||
Revisions of previous estimates | (8,546 | ) | (9,557 | ) | (143,704 | ) | (42.1 | ) | ||
Purchases | 7,950 | 2,569 | 10,656 | 12.4 | ||||||
Extensions and discoveries | 35,132 | 11,759 | 61,170 | 57.1 | ||||||
Production | (8,766 | ) | (2,573 | ) | (76,362 | ) | (24.1 | ) | ||
Proved reserves at end of period | 155,348 | 56,155 | 809,128 | 346.4 | ||||||
Proved developed reserves at end of period | 105,976 | 36,440 | 708,657 | 260.5 | ||||||
Proved undeveloped reserves at end of period | 49,372 | 19,715 | 100,471 | 85.9 | ||||||
2014 Activities: Energen had net downward reserve revisions during 2014 which totaled 75.7 MMBOE including downward revisions of approximately 53.4 MMBOE of proved undeveloped reserves that are now expected to be drilled after the original five year period and upward revisions of approximately 3.9 MMBOE related to changes in year-end pricing. The San Juan Basin had upward reserve revisions of 1.6 MMBOE including 4.4 MMBOE related to changes in year-end pricing and downward revisions of approximately 1.5 MMBOE due to higher operating costs. Net downward reserve revisions of 77.3 MMBOE in the Permian Basin were due to reclassifying 53.4 MMBOE as unproved because of changes in our development plans, downward revisions of approximately 13.3 MMBOE due to decreased well performance in certain Wolfberry wells, downward revisions of approximately 5.4 due to higher operating costs and approximately 0.5 MMBOE related to changes in the year-end pricing. | ||||||||||
Energen purchased 0.1 MMBOE of reserves during 2014 primarily related to the acquisitions of oil properties in the Permian Basin. | ||||||||||
During 2014, Energen had extensions and discoveries of 130.0 MMBOE of which 70 percent were proved undeveloped reserves and 30 percent were proved developed reserves. Extension drilling resulted in 89.6 MMBOE of discoveries with exploratory drilling providing 40.4 MMBOE of discoveries. The San Juan Basin added 1.1 MMBOE of reserves through the drilling or identification of 16 well locations and 10 pay adds. The Permian Basin added 128.6 MMBOE of reserves primarily through the drilling or identification of 361 well locations. | ||||||||||
During 2014, Energen had sales of 3.7 MMBOE primarily due to the sale of the North Louisiana/East Texas primarily natural gas properties. | ||||||||||
2013 Activities: Energen had upward reserve revisions during 2013 which totaled 4.6 MMBOE including approximately 7 MMBOE related to changes in year-end pricing and downward revisions of approximately 5.3 MMBOE of proved undeveloped reserves of which 4.6 MMBOE are expected to be drilled beyond five years with the remainder no longer expected to be drilled. The San Juan Basin upward reserve revisions of 2.2 MMBOE including 5.9 MMBOE related to changes in year-end pricing and downward revisions of approximately 4.6 MMBOE of proved undeveloped reserves that are expected to be drilled beyond five years. Net upward reserve revisions of 1.2 MMBOE in the Permian Basin were due to improved well performance in certain Wolfberry wells and approximately 0.4 MMBOE related to changes in the year-end pricing and downward revisions of approximately 0.7 MMBOE of proved undeveloped reserves that are no longer expected to be drilled. | ||||||||||
Energen purchased 0.2 MMBOE of reserves during 2013 primarily related to the acquisitions of oil properties in the Permian Basin. | ||||||||||
During 2013, Energen had extensions and discoveries of 36.8 MMBOE of which 45 percent were proved undeveloped reserves and 55 percent were proved developed reserves. Extension drilling resulted in 21.6 MMBOE of discoveries with exploratory drilling providing 15.2 MMBOE of discoveries. The San Juan Basin added 2.3 MMBOE of reserves through 30 pay adds. The Permian Basin added 34.4 MMBOE of reserves primarily through the drilling or identification of 262 well locations. | ||||||||||
During 2013, Energen had sales of 14.8 MMBOE primarily due to the sale of the Black Warrior Basin coalbed methane properties. | ||||||||||
2012 Activities: Energen had downward reserve revisions during 2012 which totaled 42.1 MMBOE. The Black Warrior Basin had downward reserve revisions totaling 5.1 MMBOE of which approximately 5.9 MMBOE related to estimated negative price related revisions partially offset by better well performance. The San Juan Basin downward reserve revisions of 19.7 MMBOE included 22.5 MMBOE in negative price related revisions partially offset by better well performance, lower operating costs and lower fuel usage. Downward reserve revisions of 15.8 MMBOE in the Permian Basin were primarily due to lower than anticipated performance in certain development wells along with 1.0 MMBOE of estimated negative price related revisions. | ||||||||||
Energen purchased 12.4 MMBOE of reserves during 2012 primarily related to the acquisitions of oil properties in the Permian Basin. | ||||||||||
During 2012, Energen had extensions and discoveries of 57.1 MMBOE of which 59 percent were proved undeveloped reserves and 41 percent were proved developed reserves. Extension drilling resulted in 45.6 MMBOE of discoveries with exploratory drilling providing 11.5 MMBOE of discoveries. The San Juan Basin added 0.9 MMBOE of reserves through the drilling or identification of 6 well locations. The Permian Basin added 56.1 MMBOE of reserves primarily through the drilling or identification of 422 well locations. | ||||||||||
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves: The standardized measure of discounted future net cash flows is not intended, nor should it be interpreted, to present the fair market value of Energen’s crude oil and natural gas reserves. An estimate of fair market value would take into consideration factors such as, but not limited to, the recovery of reserves not presently classified as proved reserves, anticipated future changes in prices and costs, and a discount factor more representative of the time value of money and the risks inherent in reserve estimates. At December 31, 2014, 2013 and 2012, Energen had a deferred hedging gain of $315.4 million, a deferred hedging gain of $21.6 million and a deferred hedging gain of $74.8 million, respectively, all of which are excluded from the calculation of standardized measure of future net cash flows. | ||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Future gross revenues | $ | 20,971,672 | $ | 19,509,305 | $ | 17,735,363 | ||||
Future production costs | 7,532,273 | 6,136,709 | 5,715,248 | |||||||
Future development costs | 1,784,738 | 1,896,602 | 1,892,600 | |||||||
Future income tax expense | 3,440,582 | 3,209,697 | 2,809,411 | |||||||
Future net cash flows | 8,214,079 | 8,266,297 | 7,318,104 | |||||||
Discount at 10% per annum | 3,994,423 | 4,248,456 | 3,618,785 | |||||||
Standardized measure of discounted future net cash | $ | 4,219,656 | $ | 4,017,841 | $ | 3,699,319 | ||||
flows relating to proved oil and natural gas reserves | ||||||||||
The following are the principal sources of changes in the standardized measure of discounted future net cash flows: | ||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Balance at beginning of year | $ | 4,017,841 | $ | 3,699,319 | $ | 3,629,163 | ||||
Revisions to reserves proved in prior years: | ||||||||||
Net changes in prices, production costs and future development costs | (1,147,028 | ) | 566,838 | (922,792 | ) | |||||
Net changes due to revisions in quantity estimates | (1,285,394 | ) | (81,762 | ) | (383,755 | ) | ||||
Development costs incurred, previously estimated | 337,198 | 299,432 | 472,603 | |||||||
Accretion of discount | 401,784 | 369,932 | 362,916 | |||||||
Changes in timing and other* | 987,652 | (179,502 | ) | (317,244 | ) | |||||
Total revisions | (705,788 | ) | 974,938 | (788,272 | ) | |||||
New field discoveries and extensions, net of future production and development costs | 2,321,028 | 376,326 | 1,025,419 | |||||||
Sales of oil and gas produced, net of production costs | (1,054,553 | ) | (1,014,593 | ) | (812,781 | ) | ||||
Purchases | 4,241 | 4,690 | 189,755 | |||||||
Sales | (21,092 | ) | (24,876 | ) | — | |||||
Net change in income taxes | (342,021 | ) | 2,037 | 456,035 | ||||||
Net change in standardized measure of discounted future net cash flows | 201,815 | 318,522 | 70,156 | |||||||
Balance at end of year | $ | 4,219,656 | $ | 4,017,841 | $ | 3,699,319 | ||||
*Amount represents changes in production timing and other. For 2014, the production timing is significantly affected by changes related to the acceleration of the horizontal drilling program and the delay of the vertical drilling program. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Principles of Consolidation | Principles of Consolidation | |
The accompanying consolidated financial statements include Energen and its subsidiaries, principally Energen Resources, after elimination of all significant intercompany transactions in consolidation. In the opinion of management, our consolidated financial statements reflect all adjustments necessary to present fairly our financial position, results of operations, and cash flows for the periods and as of the dates shown. Such adjustments consist of normal recurring items. | ||
Property and Related Depletion | Property and Related Depletion: Energen follows the successful efforts method of accounting for costs incurred in the exploration and development of oil, natural gas liquids and natural gas reserves. Lease acquisition costs are capitalized initially, and unproved properties are reviewed periodically to determine if there has been impairment of the carrying value, with any such impairment charged to exploration expense currently. All development costs are capitalized. Energen capitalizes exploratory drilling costs until a determination is made that the well or project has either found proved reserves or is impaired. After an exploratory well has been drilled and found oil and natural gas reserves, a determination may be pending as to whether the oil and natural gas quantities can be classified as proved. In those circumstances, we continue to capitalize the drilling costs pending the determination of proved status if (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (ii) we are making sufficient progress assessing the reserves and the economic and operating viability of the project. Capitalized exploratory drilling costs are presented in unproved properties in the balance sheets. If the exploratory well is determined to be a dry well, the costs are charged to exploration expense. Other exploration costs, including geological and geophysical costs, are expensed as incurred. Depreciation, depletion and amortization expense is determined on a field-by-field basis using the units-of-production method based on proved reserves. Anticipated abandonment and restoration costs are capitalized and depreciated using the units-of-production method based on proved developed reserves. | |
Operating Revenues | Operating Revenues: Energen utilizes the sales method of accounting to recognize oil, natural gas liquids and natural gas production revenue. Under the sales method, revenues are based on actual sales volumes of commodities sold to purchasers. Over-production liabilities are established only when it is estimated that a property’s over-produced volumes exceed the net share of remaining proved reserves for such property. | |
Derivative Commodity Instruments | Derivative Commodity Instruments: We periodically enter into derivative commodity instruments to hedge our exposure to price fluctuations on oil, natural gas and natural gas liquids production. Such instruments may include over-the-counter (OTC) swaps and basis swaps typically executed with investment and commercial banks and energy-trading firms. All derivative commodity instruments in a gain position are valued on a discounted basis incorporating an estimate of performance risk specific to each related counterparty. Derivative commodity instruments in a loss position are valued on a discounted basis incorporating an estimate of performance risk specific to Energen. All derivative transactions are included in operating activities on the consolidated statements of cash flows. | |
Energen’s current policy is to not enter into agreements that require the posting of collateral. The majority of our counterparty agreements include provisions for net settlement of transactions payable on the same date and in the same currency. Most of the agreements include various contractual set-off rights, which may be exercised by the non-defaulting party in the event of an early termination due to a default. | ||
Prior to June 30, 2013, Energen used cash flow hedge accounting, where applicable, for its derivative transactions. The effective portion of the gain or loss on the derivative instrument was recognized in accumulated other comprehensive income as a component of shareholders’ equity and subsequently reclassified as gain (loss) on derivative instruments, net when the forecasted transaction affects earnings. The ineffective portion of a derivative’s change in fair value was required to be recognized immediately in gain (loss) on derivative instruments, net. All other derivative transactions not designated as cash flow hedge accounting are accounted for as mark-to-market transactions with gains or losses recognized in the period of change in gain (loss) on derivative instruments, net. | ||
Effective March 31, 2013 and June 30, 2013, Energen dedesignated from cash flow hedge accounting 5,078 thousand barrels (MBbl) and 2,353 MBbl, respectively, of various NYMEX oil contracts with the Permian Basin due to lack of correlation. Gains and losses from inception of the hedge to the dedesignation date were frozen in accumulated other comprehensive income until the forecasted transactions actually occurred. Subsequent gains or losses are accounted for as mark-to-market transactions and recognized immediately through gain (loss) on derivative instruments, net. | ||
Effective June 30, 2013, Energen discontinued the use of cash flow hedge accounting and dedesignated all remaining derivative commodity instruments that were previously designated as cash flow hedges. As a result of discontinuing hedge accounting, any gains or losses from inception of the hedge to June 30, 2013 were frozen in accumulated other comprehensive income until the forecasted transactions actually occurred. Any subsequent gains or losses are accounted for as mark-to-market and recognized immediately through gain (loss) on derivative instruments, net. As a result of Energen’s election to discontinue hedge accounting, all derivative transactions entered into subsequent to June 30, 2013 are accounted for as mark-to-market transactions with gains or losses recognized in the period of change in gain (loss) on derivative instruments, net. | ||
Derivative transactions are pursuant to standing authorizations by the Board of Directors, which do not authorize speculative positions. Energen formally documents all relationships between hedging instruments and hedged items at the inception of the hedge, as well as its risk management objective and strategy for undertaking the hedge. This process includes specific identification of the hedging instrument and the nature of the risk being hedged. Our credit facility also limits our ability to enter into commodity hedges based on projected production volumes. | ||
Asset Impairments | Asset Impairments: Oil and natural gas proved properties periodically are assessed for possible impairment on a field-by-field basis using the estimated undiscounted future cash flows. Impairment losses are recognized when the estimated undiscounted future cash flows are less than the current net book values of the properties in a field. Energen monitors its oil and natural gas properties as well as the market and business environments in which it operates and makes assessments about events that could result in potential impairment issues. Such potential events may include, but are not limited to, substantial commodity price declines, unanticipated increased operating costs, and lower than expected production performance. If a material event occurs, we make an estimate of undiscounted future cash flows to determine whether the asset is impaired. If the asset is impaired, Energen will record an impairment loss for the difference between the net book value of the properties and the fair value of the properties. The fair value of the properties typically is estimated using discounted cash flows. | |
Cash flow and fair value estimates require Energen to make projections and assumptions for pricing, demand, competition, operating costs, legal and regulatory issues, discount rates and other factors for many years into the future. These variables can, and often do, differ from the estimates and can have a positive or negative impact on our need for impairment or on the amount of impairment. In addition, further changes in the economic and business environment can impact Energen’s original and ongoing assessments of potential impairment. | ||
Energen also may recognize impairments of capitalized costs for unproved properties. The greatest portion of these costs generally relate to the acquisition of leasehold. The costs are capitalized and periodically evaluated as to recoverability, based on changes brought about by exploration activities, changes in economic factors and potential shifts in business strategy employed by management. We consider a combination of geologic and economic factors to evaluate the need for impairment of these costs. | ||
Long-Lived Assets and Discontinued Operations | Long-Lived Assets and Discontinued Operations: Energen may, in the ordinary course of business, be involved in the sale of developed or undeveloped properties. All assets held for sale are reported at the lower of the carrying amount or estimated fair value. Certain of these held for sale properties also qualify as discontinued operations when the sale results in the elimination of operations and cash flows from company operations and when there will be no significant continuing involvement in the operations and cash flows of the sold component. The results of operations of these properties are reclassified and reported as discontinued operations for prior periods. | |
Acquisitions | Acquisitions: Energen recognizes all acquisitions at fair value. Energen estimates the fair value of the assets acquired and liabilities assumed as of the acquisition date, the date on which Energen obtained control of the properties for all acquisitions that qualify as business combinations. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Fair value measurements also utilize assumptions of market participants. Energen uses a discounted cash flow model and makes market assumptions as to future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development and operating costs, projections of future rates of production, expected recovery rates and risk adjusted discount rates. These assumptions represent Level 3 inputs under the fair value hierarchy. Acquisition related costs are expensed as incurred in G&A expense on the consolidated income statements. | |
Inventories | Inventory | |
Inventories consist primarily of tubular goods and other oilfield equipment used in our operations and are stated at the lower of cost or market value, on a weighted average cost basis. | ||
Fair Value Measurements | Fair Value Measurements | |
The carrying values of cash and cash equivalents, accounts payable, accounts receivable (net of allowance), derivative commodity instruments, pension and postretirement plan assets and liabilities and other current assets and liabilities approximate fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In determining fair value, we use various valuation approaches and classify all assets and liabilities based on the lowest level of input that is significant to the fair value measurement. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect our own assumptions about the assumptions other market participants would use in pricing the asset or liability based on the best information available in the circumstances. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. The hierarchy is broken down into three levels based on the observability of inputs as follows: | ||
Level 1 - | Unadjusted quoted prices in active markets for identical assets or liabilities; | |
Level 2 - | Pricing inputs other than quoted prices in active markets included within Level 1, which are either directly or indirectly observable through correlation with market data as of the reporting date; | |
Level 3 - | Pricing that requires inputs that are both significant and unobservable to the calculation of the fair value measure. The fair value measure represents estimates of the assumptions that market participants would use in pricing the asset or liability. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints. | |
The fair value of Energen’s derivative commodity instruments is determined using market transactions and other market evidence whenever possible, including market-based inputs to models and broker or dealer quotations. Our OTC derivative contracts trade in less liquid markets with limited pricing information as compared to markets with actively traded, unadjusted quoted prices; accordingly, the determination of fair value is inherently more difficult. OTC derivatives for which we are able to substantiate fair value through directly observable market prices are classified within Level 2 of the fair value hierarchy. These Level 2 fair values consist of swaps priced in reference to NYMEX oil and natural gas prices. OTC derivatives valued using unobservable market prices have been classified within Level 3 of the fair value hierarchy. These Level 3 fair values include basin specific, basis and natural gas liquids swaps. We consider the frequency of pricing and variability in pricing between sources in determining whether a market is considered active. While Energen does not have access to the specific assumptions used in its counterparties’ valuation models, we maintain communications with our counterparties and discuss pricing practices. Further, we corroborate the fair value of our transactions by comparison of market-based price sources. | ||
Energen utilizes a discounted cash flow model in valuing its interest rate derivatives, which are comprised of interest rate swap agreements. The fair value attributable to Energen's interest rate derivative contracts is based on (i) the contracted notional amounts, (ii) active market-quoted LIBOR yield curves and (iii) the applicable credit-adjusted risk-free rate yield curve. | ||
Pension and postretirement plan assets include cash and mutual funds. Plan assets were classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The determination and classification of fair value requires judgment and may affect the valuation of fair value assets and their placement within the fair value hierarchy. Level 1 and Level 2 fair values use market transactions and other market evidence whenever possible and consist primarily of equities, fixed income and mutual funds. Level 3 fair values used unobservable market prices primarily associated with certain alternative investments and a limited partnership in 2013 and 2012. | ||
Income Taxes | Income Taxes | |
Energen uses the liability method of accounting for income taxes. Under this method, a deferred tax asset or liability is recognized for the estimated future tax effects attributable to temporary differences between the financial statement basis and the tax basis of assets and liabilities as well as tax credit 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 are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period of the change. Energen and its subsidiaries file a consolidated federal income tax return. Consolidated federal income taxes are charged to appropriate subsidiaries using the separate return method. | ||
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts | |
Trade accounts receivable are recorded at the invoiced amounts and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in the existing accounts receivable. Energen determines the allowance based on historical experience and in consideration of current market conditions. Account balances are charged against the allowance when it is anticipated the receivable will not be recovered. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash in banks and investments readily convertible into cash, which have original maturities within three months at the date of acquisition. Cash equivalents are stated at cost, which approximates fair value. | ||
Short-term investments | Short-term Investments | |
All highly liquid financial instruments with maturities greater than three months and less than one year at the date of purchase are considered to be short-term investments. | ||
Earnings Per Share (EPS) | Earnings Per Share (EPS) | |
Energen’s basic earnings per share amounts have been computed based on the weighted average number of common shares outstanding. Diluted earnings per share amounts reflect the assumed issuance of common shares for all potentially dilutive securities. | ||
Stock-Based Compensation | Stock-Based Compensation | |
Energen measures all share-based compensation awards at fair value at the date of grant and expenses the awards over the requisite vesting period. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if the actual forfeitures differ from those estimates. We recognize all stock-based compensation expense in the period of grant, subject to certain vesting requirements, for retirement eligible employees. Energen utilizes the long-form method of calculating the available pool of windfall tax benefit. | ||
Estimates | Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The major estimates and assumptions identified by management include, but are not limited to, physical quantities of proved oil and gas reserves, periodic assessments of oil and gas properties for impairment, Energen’s obligations under its employee pension and compensation plans, the valuation of derivative financial instruments, the allowance for doubtful accounts, tax contingency reserves, legal contingency reserves, asset retirement obligations and self insurance reserves. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ from the estimates. | ||
Employee Benefit Plans | Employee Benefit Plans | |
Energen has a defined benefit non-contributory qualified pension plan which covers substantially all employees. Pension benefits are based on years of service and final earnings. Energen also has nonqualified supplemental pension plans covering certain officers of Energen. In addition to providing pension benefits, Energen provides certain postretirement health care and life insurance benefits for all employees hired prior to January 1, 2010. These postretirement healthcare and life insurance benefits are available upon reaching normal retirement age while working for Energen. The projected unit credit actuarial method was used to determine the normal cost and actuarial liability. | ||
Plan Separation: Effective April 30, 2014, Energen separated its defined benefit non-contributory pension plan and its postretirement healthcare and life insurance benefit plan into an Energen and an Alagasco plan reflecting the separation of assets and obligations in accordance with ERISA provisions. Energen remeasured the plans using current assumptions. | ||
Plan Termination: In October 2014, Energen’s Board of Directors elected to freeze and terminate its qualified defined benefit pension plan. A plan amendment adopted in October 2014 closes the plan to new entrants, effective November 1, 2014, and freezes benefit accruals effective December 31, 2014. Energen terminated the plan on January 31, 2015. We anticipate distributing benefits under the plan in late 2015 or early 2016 pending receipt of a determination letter from the IRS and completion of certain administrative actions. | ||
Energen’s non-qualified supplemental retirement plans have also been amended to terminate effective December 31, 2014. Distributions under the plan are subject to certain payment restrictions under the Internal Revenue Code and Treasury regulations and payments to plan participants will be made in each of the first quarters of 2015 and 2016. | ||
Measurement: For retirement plans and other postretirement plans, certain financial assumptions are used in determining Energen’s projected benefit obligation. These assumptions are examined periodically by Energen, and any required changes are reflected in the subsequent determination of projected benefit obligations. | ||
Energen calculates periodic expense for the defined benefit pension plan and other postretirement benefit plans on an actuarial basis and the net funded status of benefit plans is recognized as an asset or liability in its statement of financial position with changes in the funded status recognized through comprehensive income. For the pension plan, the benefit obligation is the projected benefit obligation calculated on a plan termination basis assuming a distribution in one year; for other postretirement plans, the benefit obligation is the accumulated postretirement benefit obligation. Energen measures the funded status of its employee benefit plans as of the date of its year-end statement of financial position. | ||
Discount Rate: For our defined benefit pension plan, we discounted the estimated termination liability using the one year spot rate of 0.70 percent. For our other postretirement plan, we selected a yield curve comprised of a broad base of Aa bonds with maturities between zero and thirty years. The discount rate for the postretirement plan was developed as the level equivalent rate that would produce the same present value as that using spot rates aligned with the projected benefit payments. | ||
Long-Term Rate of Return: The assumed rate of return on assets is the weighted average of expected long-term asset assumptions. Energen considered past performance and current expectations for assets held by the plans as well as the expected long-term allocation of plan assets. | ||
Other Significant Assumptions: The estimated weighted average rate of increase in the compensation level for pay related plans is another assumption used in calculation of the net periodic pension cost | ||
Environmental Costs | Environmental Costs | |
Environmental compliance costs, including ongoing maintenance, monitoring and similar costs, are expensed as incurred. Environmental remediation costs are accrued when remedial efforts are probable and the cost can be reasonably estimated. | ||
Investment Strategy | Investment Strategy: Due to the plan termination of our defined benefit plans, we have transitioned our investment strategy to reduce risk. We liquidated our equity and debt securities and have invested fully in cash and cash equivalents at year-end. We expect to hold these funds along with any additional contributions in cash until the benefits are fully distributed. | |
For our postretirement benefit plan assets, we continue to employ a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets with a prudent level of risk. Risk tolerance is established through consideration of plan liabilities, plan funded status, corporate financial condition and market conditions. | ||
Energen seeks to maintain an appropriate level of diversification to minimize the risk of large losses in a single asset class. Accordingly, plan assets for the postretirement health care and life insurance benefit plan do not have a concentration of assets in a single entity, industry, commodity or class of investment fund. | ||
Recently Issued Accounting Standards | In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update defines a discontinued operation as a disposal of a component or a group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The amendment is effective for all annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. Energen does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Derivative Instruments, Gain (Loss) | We further reclassified all commodity hedges from oil and natural gas operating revenues to gain (loss) on derivative instruments, net, as follows: | ||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Open non-cash mark-to-market gains (losses) on derivative instruments | $ | 315,445 | $ | (47,832 | ) | $ | 58,750 | ||||||
Closed gains (losses) on derivative instruments | 19,574 | (2,192 | ) | 25,403 | |||||||||
Gain (loss) on derivative instruments, net | $ | 335,019 | $ | (50,024 | ) | $ | 84,153 | ||||||
Schedule of Discontinued Operations | The table below provides a detail of these items included in income (loss) from discontinued operations as follows: | ||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Alagasco net income | $ | 40,646 | $ | 57,399 | $ | 49,402 | |||||||
Depreciation, depletion and amortization | (408 | ) | (598 | ) | (572 | ) | |||||||
General and administrative | 3,337 | 5,894 | 5,166 | ||||||||||
Interest expense | (17,306 | ) | (13,815 | ) | (1,693 | ) | |||||||
Other income | (347 | ) | (1,342 | ) | (977 | ) | |||||||
Income tax expense (benefit) | 5,567 | 3,728 | (727 | ) | |||||||||
Alagasco income from discontinued operations | 31,489 | 51,266 | 50,599 | ||||||||||
Energen income (loss) from discontinued operations | (2,197 | ) | 7,813 | (1,658 | ) | ||||||||
Income from discontinued operations | $ | 29,292 | $ | 59,079 | $ | 48,941 | |||||||
As discussed in Note 14, Acquisition and Disposition of Properties, and above, the following tables detail held for sale properties by major classes of assets and liabilities: | |||||||||||||
(in thousands) | 31-Dec-14 | ||||||||||||
San Juan Basin* | |||||||||||||
Oil and natural gas properties | $ | 1,166,124 | |||||||||||
Less accumulated depreciation, depletion and amortization | (770,327 | ) | |||||||||||
Total assets held for sale | 395,797 | ||||||||||||
Other long-term liabilities | (24,230 | ) | |||||||||||
Total liabilities held for sale | (24,230 | ) | |||||||||||
Total net assets held for sale | $ | 371,567 | |||||||||||
*The San Juan Basin natural gas assets which are held for sale as of December 31, 2014, do not qualify for discontinued operations as we will have ongoing operations in the San Juan Basin. | |||||||||||||
(in thousands) | 31-Dec-13 | ||||||||||||
Alabama Gas Corporation | Black Warrior Basin | North Louisiana/East Texas | Total | ||||||||||
Cash | $ | 3,032 | $ | — | $ | — | $ | 3,032 | |||||
Accounts receivable* | 103,748 | 2,829 | 1,272 | 107,849 | |||||||||
Inventories | 41,200 | — | 68 | 41,268 | |||||||||
Oil and natural gas properties | — | — | 348,379 | 348,379 | |||||||||
Less accumulated depreciation, depletion and amortization | — | (301,609 | ) | (301,609 | ) | ||||||||
Utility plant | 1,491,433 | — | — | 1,491,433 | |||||||||
Less accumulated depreciation | (605,924 | ) | — | — | (605,924 | ) | |||||||
Other property, net | 41 | — | 165 | 206 | |||||||||
Other current assets* | 29,458 | — | — | 29,458 | |||||||||
Other long-term assets | 128,780 | — | — | 128,780 | |||||||||
Total assets held for sale | 1,191,768 | 2,829 | 48,275 | 1,242,872 | |||||||||
Accounts payable | (48,653 | ) | (1,732 | ) | (11 | ) | (50,396 | ) | |||||
Royalty payable | — | (550 | ) | (869 | ) | (1,419 | ) | ||||||
Accrued taxes | (28,027 | ) | — | — | (28,027 | ) | |||||||
Notes payable to banks | (50,000 | ) | — | — | (50,000 | ) | |||||||
Other current liabilities* | (105,013 | ) | (379 | ) | (21 | ) | (105,413 | ) | |||||
Other long-term liabilities | (331,409 | ) | — | (14,983 | ) | (346,392 | ) | ||||||
Long-term debt | (249,923 | ) | — | — | (249,923 | ) | |||||||
Total liabilities held for sale | (813,025 | ) | (2,661 | ) | (15,884 | ) | (831,570 | ) | |||||
Total net assets held for sale | $ | 378,743 | $ | 168 | $ | 32,391 | $ | 411,302 | |||||
*At December 31, 2013, Alagasco’s accounts receivable included a consolidating adjustment of $4.7 million to adjust for affiliated companies receivables. Certain other current assets and other current liabilities at Alagasco of $1.6 million and $0.5 million, respectively, were reclassified to continuing operations at Energen. | |||||||||||||
Years ended December 31, (in thousands, except per share data) | 2014 | 2013 | 2012 | ||||||||||
Natural gas distribution revenues | $ | 397,648 | $ | 533,338 | $ | 451,589 | |||||||
Oil and natural gas revenues | 5,199 | 60,191 | 76,350 | ||||||||||
Total revenues | $ | 402,847 | $ | 593,529 | $ | 527,939 | |||||||
Pretax income from discontinued operations | $ | 47,220 | $ | 92,253 | $ | 79,197 | |||||||
Income tax expense | 17,928 | 33,174 | 30,256 | ||||||||||
Income From Discontinued Operations | $ | 29,292 | $ | 59,079 | $ | 48,941 | |||||||
Gain on disposal of discontinued operations, net | $ | 724,594 | $ | 5,605 | $ | — | |||||||
Income tax expense | 285,497 | 2,011 | — | ||||||||||
Gain on Disposal of Discontinued Operations, net | $ | 439,097 | $ | 3,594 | $ | — | |||||||
Total Income From Discontinued Operations | $ | 468,389 | $ | 62,673 | $ | 48,941 | |||||||
Diluted Earnings Per Average Common Share | |||||||||||||
Income from discontinued operations | $ | 0.4 | $ | 0.81 | $ | 0.68 | |||||||
Gain on disposal of discontinued operations, net | 5.99 | 0.05 | — | ||||||||||
Total Income From Discontinued Operations | $ | 6.39 | $ | 0.86 | $ | 0.68 | |||||||
Basic Earnings Per Average Common Share | |||||||||||||
Income from discontinued operations | $ | 0.4 | $ | 0.82 | $ | 0.68 | |||||||
Gain on disposal of discontinued operations, net | 6.02 | 0.05 | — | ||||||||||
Total Income From Discontinued Operations | $ | 6.42 | $ | 0.87 | $ | 0.68 | |||||||
LongTerm_Debt_and_Notes_Payabl1
Long-Term Debt and Notes Payable (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Debt Disclosure [Abstract] | |||||||
Schedule of Long-Term Debt | Long-term debt consisted of the following: | ||||||
(in thousands) | December 31, 2014 | December 31, 2013 | |||||
Credit facility | $ | 485,000 | $ | — | |||
7.40% Medium-term Notes, Series A, due July 24, 2017 | 2,000 | 2,000 | |||||
7.36% Medium-term Notes, Series A, due July 24, 2017 | 15,000 | 15,000 | |||||
7.23% Medium-term Notes, Series A, due July 28, 2017 | 2,000 | 2,000 | |||||
7.32% Medium-term Notes, Series A, due July 28, 2022 | 20,000 | 20,000 | |||||
7.60% Medium-term Notes, Series A, due July 26, 2027 | 5,000 | 5,000 | |||||
7.35% Medium-term Notes, Series A, due July 28, 2027 | 10,000 | 10,000 | |||||
7.125% Medium-term Notes, Series B, due February 15, 2028 | 100,000 | 100,000 | |||||
4.625% Notes, due September 1, 2021 | 400,000 | 400,000 | |||||
Senior Term Loans, (floating rate interest LIBOR plus 1.625%) | — | 600,000 | |||||
Total | 1,039,000 | 1,154,000 | |||||
Less amounts due within one year | — | 60,000 | |||||
Less unamortized debt discount | 437 | 459 | |||||
Total | $ | 1,038,563 | $ | 1,093,541 | |||
Schedule of Aggregate Maturities of Long-Term Debt | The aggregate maturities of Energen’s long-term debt as of December 31, 2014 are as follows: | ||||||
Years ending December 31, (in thousands) | |||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||
$— | $— | $19,000 | $— | $485,000 | $535,000 | ||
Schedule of Credit Facilities | The following is a summary of information relating to Energen’s credit facilities: | ||||||
(in thousands) | December 31, 2014 | December 31, 2013 | |||||
Notes payable to banks | $ | 485,000 | $ | 489,000 | |||
Available for borrowings | 1,515,000 | 761,000 | |||||
Total | $ | 2,000,000 | $ | 1,250,000 | |||
Maximum amount outstanding at any month-end | $ | 750,000 | $ | 859,000 | |||
Average daily amount outstanding | $ | 482,166 | $ | 772,012 | |||
Weighted average interest rates based on: | |||||||
Average daily amount outstanding | 1.46 | % | 1.39 | % | |||
Amount outstanding at year-end | 1.67 | % | 1.4 | % |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Components of Income Taxes | The components of Energen’s income taxes consisted of the following: | ||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Taxes estimated to be payable currently: | |||||||||||||
Federal | $ | 161,576 | $ | 23,342 | $ | 16,295 | |||||||
State | 72,379 | 2,516 | 3,125 | ||||||||||
Total current | 233,955 | 25,858 | 19,420 | ||||||||||
Taxes deferred: | |||||||||||||
Federal | 144,645 | 85,950 | 119,053 | ||||||||||
State | (34,447 | ) | (2,300 | ) | 5,346 | ||||||||
Total deferred | 110,198 | 83,650 | 124,399 | ||||||||||
Total income tax expense | $ | 344,153 | $ | 109,508 | $ | 143,819 | |||||||
Schedule of Components of Income Tax Expense (Benefit), Continuing and Discontinued Operations | The components of Energen’s income taxes consisted of the following: | ||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Income tax expense from continuing operations | $ | 40,728 | $ | 74,323 | $ | 113,563 | |||||||
Income tax expense from discontinued operations | 17,928 | 33,174 | 30,256 | ||||||||||
Income tax expense from gain on disposal of discontinued operations | 285,497 | 2,011 | — | ||||||||||
Total income tax expense | $ | 344,153 | $ | 109,508 | $ | 143,819 | |||||||
Schedule of Deferred Tax Assets and Liabilities | Temporary differences and carryforwards which gave rise to Energen’s deferred tax assets and liabilities were as follows: | ||||||||||||
(in thousands) | December 31, 2014 | December 31, 2013 | |||||||||||
Current | Noncurrent | Current | Noncurrent | ||||||||||
Deferred tax assets: | |||||||||||||
Minimum tax credit | $ | — | $ | 46,338 | $ | — | $ | — | |||||
Allowance for doubtful accounts | 244 | — | 251 | — | |||||||||
Insurance and other accruals | 2,537 | — | 3,082 | — | |||||||||
Compensation accruals | 11,355 | — | 12,925 | — | |||||||||
Pension and other costs | — | 7,009 | — | 3,652 | |||||||||
Other comprehensive income | 10,732 | 1,581 | — | 15,350 | |||||||||
Derivative instruments | — | — | 10,769 | — | |||||||||
State net operating losses and other carryforwards | — | 15,392 | — | 4,577 | |||||||||
Other | 665 | — | 235 | — | |||||||||
Total deferred tax assets | 25,533 | 70,320 | 27,262 | 23,579 | |||||||||
Valuation allowance | (1,122 | ) | (2,467 | ) | (299 | ) | (2,674 | ) | |||||
Total deferred tax assets | 24,411 | 67,853 | 26,963 | 20,905 | |||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and basis differences | — | 1,057,430 | — | 821,425 | |||||||||
Derivative instruments | 102,691 | — | — | 2,048 | |||||||||
Other comprehensive income | — | — | 5,540 | — | |||||||||
Other | 884 | 10,909 | 173 | 5,046 | |||||||||
Total deferred tax liabilities | 103,575 | 1,068,339 | 5,713 | 828,519 | |||||||||
Net deferred tax assets (liabilities) | $ | (79,164 | ) | $ | (1,000,486 | ) | $ | 21,250 | $ | (807,614 | ) | ||
Schedule of Effective Income Tax Rate Reconciliation | Total income tax expense from continuing operations differed from the amount which would have been provided by applying the statutory federal income tax rate of 35 percent to earnings before taxes as illustrated below: | ||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Income tax expense at statutory federal income tax rate | $ | 49,130 | $ | 75,671 | $ | 111,364 | |||||||
Increase (decrease) resulting from: | |||||||||||||
State income taxes, net of federal income tax benefit | 93 | 1,461 | 2,423 | ||||||||||
Impact of state law changes | (121 | ) | (1,966 | ) | — | ||||||||
Impact of state deferred tax revaluation on San Juan properties | (8,382 | ) | — | — | |||||||||
401(k) stock dividend deduction | (232 | ) | (449 | ) | (514 | ) | |||||||
Other, net | 240 | (394 | ) | 290 | |||||||||
Total income tax expense | $ | 40,728 | $ | 74,323 | $ | 113,563 | |||||||
Effective income tax rate (%) | 29.01 | 34.38 | 35.69 | ||||||||||
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of Energen’s beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
(in thousands) | |||||||||||||
Balance as of December 31, 2011 | $ | 10,593 | |||||||||||
Additions based on tax positions related to the current year | 3,731 | ||||||||||||
Additions for tax positions of prior years | 269 | ||||||||||||
Reductions for tax positions of prior years | (446 | ) | |||||||||||
Lapse of statute of limitations | (1,592 | ) | |||||||||||
Balance as of December 31, 2012 | 12,555 | ||||||||||||
Additions based on tax positions related to the current year | 4,546 | ||||||||||||
Additions for tax positions of prior years | 366 | ||||||||||||
Reductions for tax positions of prior years | (46 | ) | |||||||||||
Lapse of statute of limitations | (1,435 | ) | |||||||||||
Balance as of December 31, 2013 | 15,986 | ||||||||||||
Additions based on tax positions related to the current year | 3,873 | ||||||||||||
Additions for tax positions of prior years | 19 | ||||||||||||
Reductions for tax positions of prior years | (954 | ) | |||||||||||
Lapse of statute of limitations | (1,394 | ) | |||||||||||
Balance as of December 31, 2014 | $ | 17,530 | |||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Schedule of benefit obligations | The following table sets forth the combined funded status of the defined qualified and nonqualified supplemental benefit plans along with the postretirement health care and life insurance benefit plans and their reconciliation with the related amounts in Energen’s consolidated financial statements. As Energen has frozen and plans to terminate the defined benefit pension plan, the projected pension benefit obligation as of December 31, 2014 represents the present value of the estimated cost of settling the plans benefit obligation. The amounts in the table below as of December, 31 2013 include both Energen and Alagasco, except for Alagasco plans which contain certain labor union agreements: | ||||||||||||
As of December 31, (in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||
Pension | Postretirement Benefits | ||||||||||||
Accumulated benefit obligation | $ | 107,669 | $ | 225,969 | |||||||||
Benefit obligation: | |||||||||||||
Balance at beginning of period | $ | 266,294 | $ | 293,075 | $ | 33,224 | $ | 46,901 | |||||
Service cost | 8,329 | 13,293 | 262 | 1,125 | |||||||||
Interest cost | 5,325 | 10,161 | 716 | 1,931 | |||||||||
Actuarial (gain) loss | 9,078 | (26,909 | ) | 6,385 | (13,311 | ) | |||||||
Curtailment gain | (8,496 | ) | (4,223 | ) | — | (1,255 | ) | ||||||
Transfer in connection with the sale of Alagasco | (124,783 | ) | — | (28,648 | ) | — | |||||||
Termination benefit charge | 2,477 | — | — | — | |||||||||
Retiree drug subsidy program | — | — | 48 | 124 | |||||||||
Benefits paid | (50,555 | ) | (19,103 | ) | (860 | ) | (2,291 | ) | |||||
Balance at end of period | $ | 107,669 | $ | 266,294 | $ | 11,127 | $ | 33,224 | |||||
Plan assets: | |||||||||||||
Fair value of plan assets at beginning of period | $ | 193,457 | $ | 182,796 | $ | 55,459 | $ | 48,194 | |||||
Actual return (loss) on plan assets | 5,359 | 19,595 | (331 | ) | 8,072 | ||||||||
Employer contributions | 19,164 | 10,169 | 21 | 1,484 | |||||||||
Transfer in connection with the sale of Alagasco | (99,883 | ) | — | (43,596 | ) | — | |||||||
Benefits paid | (50,555 | ) | (19,103 | ) | (860 | ) | (2,291 | ) | |||||
Fair value of plan assets at end of period | $ | 67,542 | $ | 193,457 | $ | 10,693 | $ | 55,459 | |||||
Funded status of plans | $ | (40,127 | ) | $ | (72,837 | ) | $ | (434 | ) | $ | 22,235 | ||
Noncurrent assets | $ | — | $ | — | $ | — | $ | 8,894 | |||||
Noncurrent assets in assets held for sale | — | — | — | 13,341 | |||||||||
Current liabilities | (24,626 | ) | (6,145 | ) | — | — | |||||||
Noncurrent liabilities | (15,501 | ) | (47,485 | ) | (434 | ) | — | ||||||
Noncurrent liabilities in liabilities related to assets held for sale | — | (19,207 | ) | — | — | ||||||||
Net asset (liability) recognized | $ | (40,127 | ) | $ | (72,837 | ) | $ | (434 | ) | $ | 22,235 | ||
Amounts recognized to accumulated other comprehensive income: | |||||||||||||
Prior service costs, net of taxes | $ | — | $ | 323 | $ | — | $ | — | |||||
Net actuarial (gain) loss, net of taxes | 22,246 | 37,479 | 624 | (5,584 | ) | ||||||||
Transition obligation, net of taxes | — | — | — | 27 | |||||||||
Total accumulated other comprehensive income (loss) | $ | 22,246 | $ | 37,802 | $ | 624 | $ | (5,557 | ) | ||||
Schedule of allocation of plan assets | The Company’s weighted average plan asset allocations by asset category were as follows: | ||||||||||||
Pension | Postretirement Benefits | ||||||||||||
As of December 31, | Target | 2014 | 2013 | Target | 2014 | 2013 | |||||||
Asset category: | |||||||||||||
Equity securities | — | % | — | % | 34 | % | 60 | % | 60 | % | 61 | % | |
Debt securities | — | % | — | % | 28 | % | 40 | % | 40 | % | 39 | % | |
Other | 100 | % | 100 | % | 38 | % | — | % | — | % | — | % | |
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |
Schedule of net periodic benefit cost | The components of net periodic benefit cost from continuing operations were as follows: | ||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Pension Plans | |||||||||||||
Components of net periodic benefit cost: | |||||||||||||
Service cost | $ | 6,808 | $ | 5,196 | $ | 4,023 | |||||||
Interest cost | 4,498 | 4,496 | 4,296 | ||||||||||
Expected long-term return on assets | (4,386 | ) | (5,225 | ) | (5,134 | ) | |||||||
Prior service cost amortization | 202 | 246 | 209 | ||||||||||
Actuarial loss amortization | 4,995 | 6,919 | 3,945 | ||||||||||
Termination benefit charge | 2,477 | — | — | ||||||||||
Settlement charge | 4,082 | 161 | — | ||||||||||
Curtailment expense (gain) | 254 | (4 | ) | — | |||||||||
Net periodic expense | $ | 18,930 | $ | 11,789 | $ | 7,339 | |||||||
Postretirement Benefit Plans | |||||||||||||
Components of net periodic benefit cost: | |||||||||||||
Service cost | $ | 253 | $ | 386 | $ | 454 | |||||||
Interest cost | 661 | 645 | 810 | ||||||||||
Expected long-term return on assets | (1,122 | ) | (787 | ) | (741 | ) | |||||||
Actuarial gain amortization | (653 | ) | (28 | ) | — | ||||||||
Transition obligation amortization | 44 | 229 | 248 | ||||||||||
Net periodic (income) expense | $ | (817 | ) | $ | 445 | $ | 771 | ||||||
Schedule of other changes in plan assets and projected benefit obligations recognized in other comprehensive income | Other changes in plan assets and projected benefit obligations recognized in other comprehensive income were as follows: | ||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Pension Plans | |||||||||||||
Net actuarial (gain) loss experienced during the year | $ | 10,495 | $ | (14,138 | ) | $ | 28,748 | ||||||
Net actuarial loss recognized as expense | (25,433 | ) | (8,934 | ) | (4,908 | ) | |||||||
Prior service cost recognized as expense | (246 | ) | (311 | ) | (340 | ) | |||||||
Curtailment loss | (8,749 | ) | — | — | |||||||||
Total recognized in other comprehensive income (loss) | (23,933 | ) | (23,383 | ) | 23,500 | ||||||||
Postretirement Benefit Plans | |||||||||||||
Net actuarial (gain) loss experienced during the year | $ | 7,649 | $ | (8,057 | ) | $ | (1,787 | ) | |||||
Net actuarial gain recognized as expense | 1,908 | 550 | — | ||||||||||
Transition obligation recognized as expense | (48 | ) | (283 | ) | (294 | ) | |||||||
Total recognized in other comprehensive income (loss) | $ | 9,509 | $ | (7,790 | ) | $ | (2,081 | ) | |||||
Schedule of estimated amount to be amortized from accumulated other comprehensive income | Estimated amounts to be amortized from accumulated other comprehensive income into pension cost during 2015 are included in the table below. In addition, the Company anticipates recognizing the remaining amounts from accumulated other comprehensive income on the date of distribution of pension plan benefits. | ||||||||||||
(in thousands) | |||||||||||||
Amortization of net actuarial loss | $ | 841 | |||||||||||
Schedule of weighted average rate assumptions | The weighted average rate assumptions to determine net periodic benefit costs were as follows: | ||||||||||||
Years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Pension Plans | |||||||||||||
Discount rate | 3.66 | % | 3.63 | % | 4.52 | % | |||||||
Expected long-term return on plan assets | 7 | % | 7 | % | 7 | % | |||||||
Rate of compensation increase for pay-related plans | 3.63 | % | 3.71 | % | 3.59 | % | |||||||
Postretirement Benefit Plans | |||||||||||||
Discount rate | 4.88 | % | 4.36 | % | 4.95 | % | |||||||
Expected long-term return on plan assets | 7 | % | 7 | % | 7 | % | |||||||
Rate of compensation increase | 3.6 | % | 3.7 | % | 3.55 | % | |||||||
The pension benefit obligation as of December 31, 2014 represents the present value of the estimated cost of settling the benefit obligation of the plan. For our defined benefit pension plan, we discounted the estimated termination liability using the one year spot rate of 0.70 percent. The discount rate shown below represents the weighted average for both the defined qualified and nonqualified supplemental benefit plans. As the plans were frozen as of December 31, 2014, the rate of compensation increase no longer applies for any of the plans. The weighted average assumptions used to determine the benefit obligations at the measurement date were as follows: | |||||||||||||
Years ended December 31, | 2014 | 2013 | |||||||||||
Pension Plans | |||||||||||||
Discount rate | 0.96 | % | 4.29 | % | |||||||||
Rate of compensation increase for pay-related plans | — | % | 3.63 | % | |||||||||
Postretirement Benefit Plans | |||||||||||||
Discount rate | 4.25 | % | 4.95 | % | |||||||||
Rate of compensation increase for pay-related plans | — | % | 3.6 | % | |||||||||
Schedule of assumed post-65 health care cost rend rates | The assumed post-65 health care cost trend rates used to determine the postretirement benefit obligation at the measurement date were as follows: | ||||||||||||
As of December 31, | 2014 | 2013 | |||||||||||
Health care cost trend rate assumed for next year | 7.25 | % | 6.5 | % | |||||||||
Rate to which the cost trend rate is assumed to decline | 5 | % | 5 | % | |||||||||
Year that rate reaches ultimate rate | 2021 | 2020 | |||||||||||
Schedule of effect of 1 percentage point change in assumed health care cost trend rates | accumulated postretirement benefit obligation due to the separation of assets and obligations of the postretirement healthcare and life insurance benefit plan into an Energen and an Alagasco plan. Employees remaining at Energen will receive a fixed postretirement benefit. | ||||||||||||
Schedule of expected benefit payments | The following benefit payments, which reflect expected future service, as appropriate, are anticipated to be paid as follows: | ||||||||||||
(in thousands) | Pension Benefits | Postretirement Benefits | |||||||||||
2015 | $92,711 | $324 | |||||||||||
2016 | $14,601 | $397 | |||||||||||
2017 | $113 | $472 | |||||||||||
2018 | $110 | $541 | |||||||||||
2019 | $107 | $583 | |||||||||||
2020-2024 | $484 | $3,266 | |||||||||||
Pension Plans | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Schedule of allocation of plan assets | Plan assets included in the funded status of the pension plans were as follows: | ||||||||||||
31-Dec-14 | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
Cash and cash equivalents | $ | 67,542 | $ | — | $ | 67,542 | |||||||
Total | $ | 67,542 | $ | — | $ | 67,542 | |||||||
December 31, 2013 | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
United States equities | $ | 34,117 | $ | — | $ | 34,117 | |||||||
Global equities | 20,144 | 8,636 | 28,780 | ||||||||||
Fixed income | — | 50,777 | 50,777 | ||||||||||
Alternative investments | — | 37,292 | 37,292 | ||||||||||
Cash and cash equivalents | 5,970 | 36,521 | 42,491 | ||||||||||
Total | $ | 60,231 | $ | 133,226 | $ | 193,457 | |||||||
Schedule of reconciliation of plan assets in Level 3 of fair value hierarchy | The following is a reconciliation of plan assets in Level 3 of the fair value hierarchy: | ||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 14,500 | $ | 17,399 | |||||||||
Unrealized gains (losses) | — | 992 | |||||||||||
Unrealized gains relating to instruments held at the reporting date | — | 242 | |||||||||||
Settlements | — | (4,948 | ) | ||||||||||
Purchases | — | 815 | |||||||||||
Transfer out of Level 3 | (14,500 | ) | — | ||||||||||
Balance at end of period | $ | — | $ | 14,500 | |||||||||
Postretirement Benefit Plans | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Schedule of allocation of plan assets | Plan assets included in the funded status of the postretirement benefit plans were as follows: | ||||||||||||
December 31, 2014 | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
United States equities | $ | 4,715 | $ | — | $ | 4,715 | |||||||
Global equities | 1,711 | — | 1,711 | ||||||||||
Fixed income | — | 4,267 | 4,267 | ||||||||||
Total | $ | 6,426 | $ | 4,267 | $ | 10,693 | |||||||
December 31, 2013 | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
United States equities | $ | 24,152 | $ | — | $ | 24,152 | |||||||
Global equities | 9,563 | — | 9,563 | ||||||||||
Fixed income | — | 21,744 | 21,744 | ||||||||||
Total | $ | 33,715 | $ | 21,744 | $ | 55,459 | |||||||
Nonqualified Supplemental Retirement Plans | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Schedule of allocation of plan assets | Other investment assets designated for payment of the nonqualified supplemental retirement plans were as follows: | ||||||||||||
December 31, 2014 | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
Fixed income | $ | — | $ | 4,255 | $ | 4,255 | |||||||
Cash and cash equivalents | 9,929 | — | 9,929 | ||||||||||
Total | $ | 9,929 | $ | 4,255 | $ | 14,184 | |||||||
December 31, 2013 | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
Insurance contracts | $ | — | $ | 14,805 | $ | 14,805 | |||||||
United States equities | 5,579 | — | 5,579 | ||||||||||
Global equities | 2,338 | — | 2,338 | ||||||||||
Fixed income | — | 11,039 | 11,039 | ||||||||||
Total | $ | 7,917 | $ | 25,844 | $ | 33,761 | |||||||
Schedule of reconciliation of plan assets in Level 3 of fair value hierarchy | The following is a reconciliation of insurance contracts in Level 3 of the fair value hierarchy: | ||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 5,600 | $ | 5,332 | |||||||||
Unrealized gains relating to instruments held at the reporting date | — | 268 | |||||||||||
Transfer out of Level 3 | (5,600 | ) | — | ||||||||||
Balance at end of period | $ | — | $ | 5,600 | |||||||||
Common_Stock_Plans_Tables
Common Stock Plans (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Share-based Compensation [Abstract] | ||||||||
Schedule of Performance Share Award Activity | No performance share awards were granted in 2012. A summary of performance share award activity as of December 31, 2014, and transactions during the years ended December 31, 2014 and 2013 is presented below: | |||||||
Stock Incentive Plan | ||||||||
Shares | Weighted | |||||||
Average Price | ||||||||
Nonvested at December 31, 2012 | — | $ | — | |||||
Granted (two-year vesting period) | 86,221 | 61.14 | ||||||
Granted (three-year vesting period) | 82,606 | 62.96 | ||||||
Forfeited | (8,008 | ) | 60.03 | |||||
Nonvested at December 31, 2013 | 160,819 | 62.13 | ||||||
Granted (two-year vesting period) | 937 | 131.56 | ||||||
Granted (three-year vesting period) | 65,309 | 93.49 | ||||||
Vested and paid | (14,097 | ) | 70.06 | |||||
Nonvested at December 31, 2014 | 212,968 | $ | 71.53 | |||||
Schedule of Stock Option Activity and Transactions | A summary of stock option activity as of December 31, 2014, and transactions during the years ended December 31, 2014, 2013 and 2012 are presented below: | |||||||
Stock Incentive Plan | ||||||||
Shares | Weighted Average Exercise Price | |||||||
Outstanding at December 31, 2011 | 1,338,241 | $ | 44.77 | |||||
Granted | 371,040 | 54.11 | ||||||
Exercised | (58,471 | ) | 24.55 | |||||
Forfeited | (2,335 | ) | 46.45 | |||||
Outstanding at December 31, 2012 | 1,648,475 | 47.58 | ||||||
Granted | 137,762 | 49.22 | ||||||
Exercised | (590,119 | ) | 40.92 | |||||
Forfeited | (5,074 | ) | 51.85 | |||||
Outstanding at December 31, 2013 | 1,191,044 | 51.06 | ||||||
Granted | 110,307 | 72.55 | ||||||
Exercised | (544,280 | ) | 50.09 | |||||
Outstanding at December 31, 2014 | 757,071 | $ | 54.88 | |||||
Exercisable at December 31, 2012 | 987,733 | $ | 43.75 | |||||
Exercisable at December 31, 2013 | 713,445 | $ | 49.8 | |||||
Exercisable at December 31, 2014 | 454,938 | $ | 51.88 | |||||
Remaining reserved for issuance at December 31, 2014 | 2,635,544 | — | ||||||
Schedule of Stock Options Valuation Assumptions | Energen uses the Black-Scholes pricing model to calculate the fair values of the options awarded. For purposes of this valuation the following assumptions were used to derive the fair values: | |||||||
Grant date | 4/15/14 | 1/22/14 | 10/15/13 | 1/24/13 | 1/25/12 | |||
Awards granted | 2,439 | 107,868 | 3,686 | 134,076 | 371,040 | |||
Fair market value of stock option at grant | $32.22 | $27.57 | $30.53 | $16.66 | $18.79 | |||
Expected life of award | 5.8 years | 5.8 years | 5.8 years | 5.8 years | 5.8 years | |||
Risk-free interest rate | 1.93% | 2.06% | 1.79% | 1.01 | % | 1.07 | % | |
Annualized volatility rate | 40.70% | 40.70% | 40.60% | 40.3 | % | 39.6 | % | |
Dividend yield | 0.20% | 0.80% | 0.70% | 1.2 | % | 1 | % | |
Schedule of Outstanding Stock Options by Range of Exercise Prices | The following table summarizes options outstanding as of December 31, 2014: | |||||||
Stock Incentive Plan | ||||||||
Range of Exercise Prices | Shares | Weighted Average Remaining Contractual Life | ||||||
$46.45 | 25,470 | 2.00 years | ||||||
$60.56 | 48,560 | 3.00 years | ||||||
$29.79 | 35,161 | 4.00 years | ||||||
$46.69 | 26,481 | 5.00 years | ||||||
$54.99 | 111,487 | 6.00 years | ||||||
$54.11 | 271,848 | 7.00 years | ||||||
$48.36 | 124,071 | 8.00 years | ||||||
$80.48 | 3,686 | 8.79 years | ||||||
$72.39 | 107,868 | 9.00 years | ||||||
$79.63 | 2,439 | 9.00 years | ||||||
$29.79-$80.48 | 757,071 | 6.68 years | ||||||
Schedule of Restricted Stock Activity and Transactions | A summary of restricted stock unit activity as of December 31, 2014, and transactions during the years ended December 31, 2014, 2013 and 2012 is presented below: | |||||||
Stock Incentive Plan | ||||||||
Shares | Weighted Average Price | |||||||
Nonvested at December 31, 2011 | 9,275 | $ | 42.99 | |||||
Granted | 11,115 | 45.24 | ||||||
Vested | (9,275 | ) | 42.97 | |||||
Nonvested at December 31, 2012 | 11,115 | 45.24 | ||||||
Granted | 52,650 | 52.34 | ||||||
Forfeited | (1,247 | ) | 48.36 | |||||
Nonvested at December 31, 2013 | 62,518 | 51.16 | ||||||
Granted | 48,904 | 71.91 | ||||||
Vested | (11,848 | ) | 65.94 | |||||
Nonvested at December 31, 2014 | 99,574 | $ | 59.6 | |||||
Summary of Stock Appreciation Rights Activity | A summary of stock appreciation rights activity as of December 31, 2014, and transactions during the years ended December 31, 2014, 2013 and 2012 are presented below: | |||||||
Stock Appreciation Rights Plan | ||||||||
Shares | Weighted Average Exercise Price | |||||||
Outstanding at December 31, 2011 | 777,218 | $ | 42 | |||||
Exercised/forfeited | (124,188 | ) | 30.9 | |||||
Outstanding at December 31, 2012 | 653,030 | 44.14 | ||||||
Granted | 88,000 | 48.36 | ||||||
Exercised/forfeited | (363,653 | ) | 39.66 | |||||
Outstanding at December 31, 2013 | 377,377 | 49.48 | ||||||
Granted | 62,749 | 72.39 | ||||||
Exercised/forfeited | (164,976 | ) | 52.37 | |||||
Outstanding at December 31, 2014 | 275,150 | $ | 52.96 | |||||
Schedule of Stock Appreciation Rights Valuation Assumptions | For purposes of this valuation the following assumptions were used to derive the fair values as of December 31, 2014: | |||||||
Grant date | 1/22/14 | 1/24/13 | 1/24/13 | 1/26/11 | 1/26/11 | |||
(modified) | (modified) | |||||||
Awards granted | 62,749 | 87,069 | 931 | 182,199 | 7,785 | |||
Fair market value of award | $18.63 | $25.93 | $20.14 | $19.15 | $16.27 | |||
Expected life of award | 5.56 years | 4.57 years | 2.0 years | 3.04 years | 2.0 years | |||
Risk-free interest rate | 1.77% | 1.57% | 0.65% | 1.12% | 0.65% | |||
Annualized volatility rate | 33.40% | 33.40% | 33.40% | 33.40% | 33.40% | |||
Dividend yield | 0.13% | 0.13% | 0.13% | 0.13% | 0.13% | |||
Grant date | 1/27/10 | 2/13-16/2009 | 1/28/09 | 2/4/08 | 2/1/07 | |||
Awards granted | 171,749 | 3,292 | 305,257 | 67,093 | 85,906 | |||
Fair market value of award | $22.50 | $33.23 | $34.66 | $10.57 | $19.25 | |||
Expected life of award | 2.54 years | 2.04 years | 2.04 years | 1.55 years | 1.04 years | |||
Risk-free interest rate | 0.90% | 0.67% | 0.67% | 0.45% | 0.26% | |||
Annualized volatility rate | 33.40% | 33.40% | 33.40% | 33.40% | 33.40% | |||
Dividend yield | 0.13% | 0.13% | 0.13% | 0.13% | 0.13% | |||
Schedule of Incentive Units Activity | A summary of Petrotech unit activity as of December 31, 2014, and transactions during the years ended December 31, 2014, 2013 and 2012 are presented below: | |||||||
Petrotech Incentive Plan | ||||||||
Shares | ||||||||
Outstanding at December 31, 2011 | 11,061 | |||||||
Granted (three-year vesting period) | 102,349 | |||||||
Granted (two-year vesting period) | 3,768 | |||||||
Granted (18 month vesting period) | 40,822 | |||||||
Paid | (3,281 | ) | ||||||
Forfeited | (13,476 | ) | ||||||
Outstanding at December 31, 2012 | 141,243 | |||||||
Granted (three-year vesting period) | 92,418 | |||||||
Granted (17 month vesting period) | 2,952 | |||||||
Paid | (36,792 | ) | ||||||
Forfeited | (26,529 | ) | ||||||
Outstanding at December 31, 2013 | 173,292 | |||||||
Granted | 76,084 | |||||||
Paid | (4,431 | ) | ||||||
Forfeited | (31,075 | ) | ||||||
Outstanding at December 31, 2014 | 213,870 | |||||||
Derivative_Commodity_Instrumen1
Derivative Commodity Instruments (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Schedule of Derivative Liabilities at Fair Value | The following tables detail the offsetting of derivative assets and liabilities as well as the fair values of derivatives on the balance sheets: | ||||||||||||||||||
(in thousands) | 31-Dec-14 | ||||||||||||||||||
Gross Amounts Not Offset in the Balance Sheets | |||||||||||||||||||
Gross Amounts Recognized at Fair Value | Gross Amounts Offset in the Balance Sheets | Net Amount Presented in the Balance Sheets | Financial Instruments | Cash Collateral Received | Net Fair Value Presented in the Balance Sheets | ||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Assets | |||||||||||||||||||
Derivative instruments | $ | 339,977 | $ | (17,640 | ) | $ | 322,337 | $ | — | $ | — | $ | 322,337 | ||||||
Noncurrent derivative instruments | — | — | — | — | — | — | |||||||||||||
Total derivative assets | 339,977 | (17,640 | ) | 322,337 | — | — | 322,337 | ||||||||||||
Liabilities | |||||||||||||||||||
Derivative instruments | 18,628 | (17,640 | ) | 988 | — | — | 988 | ||||||||||||
Noncurrent derivative instruments | — | — | — | — | — | — | |||||||||||||
Total derivative liabilities | 18,628 | (17,640 | ) | 988 | — | — | 988 | ||||||||||||
Total derivatives | $ | 321,349 | $ | — | $ | 321,349 | $ | — | $ | — | $ | 321,349 | |||||||
(in thousands) | 31-Dec-13 | ||||||||||||||||||
Gross Amounts Not Offset in the Balance Sheets | |||||||||||||||||||
Gross Amounts Recognized at Fair Value | Gross Amounts Offset in the Balance Sheets | Net Amount Presented in the Balance Sheets | Financial Instruments | Cash Collateral Received | Net Fair Value Presented in the Balance Sheets | ||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Assets | |||||||||||||||||||
Derivative instruments | $ | 36,223 | $ | (18,760 | ) | $ | 17,463 | $ | — | $ | — | $ | 17,463 | ||||||
Noncurrent derivative instruments | 7,992 | (2,553 | ) | 5,439 | — | — | 5,439 | ||||||||||||
Total derivative assets | 44,215 | (21,313 | ) | 22,902 | — | — | 22,902 | ||||||||||||
Liabilities | |||||||||||||||||||
Derivative instruments | 49,062 | (18,760 | ) | 30,302 | — | — | 30,302 | ||||||||||||
Noncurrent derivative instruments | 2,553 | (2,553 | ) | — | — | — | — | ||||||||||||
Total derivative liabilities | 51,615 | (21,313 | ) | 30,302 | — | — | 30,302 | ||||||||||||
Total derivatives | $ | (7,400 | ) | $ | — | $ | (7,400 | ) | $ | — | $ | — | $ | (7,400 | ) | ||||
The following fair value hierarchy tables present information about Energen’s assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||
December 31, 2014 | |||||||||||||||||||
(in thousands) | Level 2 | Level 3 | Total | ||||||||||||||||
Assets | |||||||||||||||||||
Derivative instruments | $ | 294,865 | $ | 27,472 | $ | 322,337 | |||||||||||||
Total assets | 294,865 | 27,472 | 322,337 | ||||||||||||||||
Liabilities | |||||||||||||||||||
Derivative instruments | 2,048 | (3,036 | ) | (988 | ) | ||||||||||||||
Total liabilities | 2,048 | (3,036 | ) | (988 | ) | ||||||||||||||
Net derivative asset | $ | 296,913 | $ | 24,436 | $ | 321,349 | |||||||||||||
December 31, 2013 | |||||||||||||||||||
(in thousands) | Level 2 | Level 3 | Total | ||||||||||||||||
Assets | |||||||||||||||||||
Derivative instruments | $ | (1,658 | ) | $ | 19,121 | $ | 17,463 | ||||||||||||
Noncurrent derivative instruments | 4,383 | 1,056 | 5,439 | ||||||||||||||||
Total assets | 2,725 | 20,177 | 22,902 | ||||||||||||||||
Liabilities | |||||||||||||||||||
Derivative instruments | (28,414 | ) | (1,888 | ) | (30,302 | ) | |||||||||||||
Total liabilities | (28,414 | ) | (1,888 | ) | (30,302 | ) | |||||||||||||
Net derivative asset (liability) | $ | (25,689 | ) | $ | 18,289 | $ | (7,400 | ) | |||||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table details the effect of derivative commodity instruments in cash flow hedging relationships on the financial statements: | ||||||||||||||||||
Years ended December 31, (in thousands) | Location on Statements of Income | 2014 | 2013 | 2012 | |||||||||||||||
Net gain (loss) recognized in other comprehensive income on derivatives (effective portion), net of tax of $23, ($6,660) and $40,720 | — | $ | 37 | $ | (10,866 | ) | $ | 66,438 | |||||||||||
Gain reclassified from accumulated other comprehensive income into income (effective portion) | Gain (loss) on derivative instruments, net | $ | 21,612 | $ | 34,293 | $ | 52,694 | ||||||||||||
Gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Gain (loss) on derivative instruments, net | $ | — | $ | 835 | $ | (5,340 | ) | |||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table details the effect of open and closed derivative commodity instruments not designated as hedging instruments on the income statement: | ||||||||||||||||||
Years ended December 31, (in thousands) | Location on Statements of Income | 2014 | 2013 | 2012 | |||||||||||||||
Gain (loss) recognized in income on derivative | Gain (loss) on derivative instruments, net | $ | 313,408 | $ | (73,980 | ) | $ | 61,841 | |||||||||||
Schedule of Hedging Transactions | As of December 31, 2014, Energen entered into the following transactions for 2015 and subsequent years: | ||||||||||||||||||
Production Period | Total Hedged Volumes | Average Contract | Description | ||||||||||||||||
Price | |||||||||||||||||||
Oil | |||||||||||||||||||
2015 | 8,280 | MBbl | $89.30 Bbl | NYMEX Swaps | |||||||||||||||
Oil Basis Differential | |||||||||||||||||||
2015 | 2,160 | MBbl | $(4.30) Bbl | WTS/WTI Basis Swaps* | |||||||||||||||
2015 | 6,840 | MBbl | $(4.82) Bbl | WTI/WTI Basis Swaps** | |||||||||||||||
Natural Gas | |||||||||||||||||||
2015 | 23 | Bcf | $4.13 Mcf | Basin Specific Swaps - San Juan | |||||||||||||||
2015 | 8 | Bcf | $4.25 Mcf | Basin Specific Swaps - Permian | |||||||||||||||
*WTS - West Texas Sour/Midland, WTI - West Texas Intermediate/Cushing | |||||||||||||||||||
**WTI - West Texas Intermediate/Midland, WTI - West Texas Intermediate/Cushing |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Fair Value Disclosures [Abstract] | ||||||||||
Schedule of Changes in Fair Value of Derivative Instruments Classified as Level 3 | The table below sets forth a summary of changes in the fair value of Energen’s Level 3 derivative commodity instruments as follows: | |||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Balance at beginning of period | $ | 18,289 | $ | 89,019 | $ | 65,801 | ||||
Realized gains | 22,208 | 55,210 | 63,720 | |||||||
Unrealized gains (losses) relating to instruments held at the reporting date* | 2,981 | (71,367 | ) | 22,160 | ||||||
Settlements during period | (19,042 | ) | (54,573 | ) | (62,662 | ) | ||||
Balance at end of period** | $ | 24,436 | $ | 18,289 | $ | 89,019 | ||||
*Includes $20.2 million in mark-to-market gains, $7.6 million in mark-to-market losses and $19.9 million in mark-to-market gains for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
**Included in the Level 3 fair value at December 31, 2014 are gains of $3.2 million from natural gas liquids and Gas Daily contracts which were closed at December 31, 2014 but not cash settled. | ||||||||||
Schedule of Level Three Fair Value Measurements of Derivative Commodity Instruments | The tables below set forth quantitative information about Energen’s Level 3 fair value measurements of derivative commodity instruments as follows: | |||||||||
(in thousands, except price data) | Fair Value as of December 31, 2014 | Valuation Technique* | Unobservable Input* | Range | ||||||
Oil Basis - WTS/WTI | ||||||||||
2015 | $ | (3,836 | ) | Discounted Cash Flow | Forward Basis | ($2.55 - $2.66) Bbl | ||||
Oil Basis - WTI/WTI | ||||||||||
2015 | $ | (14,419 | ) | Discounted Cash Flow | Forward Basis | ($2.72 - $2.82) Bbl | ||||
Natural Gas Basis - San Juan | ||||||||||
2015 | $ | 28,597 | Discounted Cash Flow | Forward Basis | ($0.13- $0.14) Mcf | |||||
Natural Gas Basis - Permian | ||||||||||
2015 | $ | 10,927 | Discounted Cash Flow | Forward Basis | ($0.15) Mcf | |||||
*Discounted cash flow represents an income approach in calculating fair value including the referenced unobservable input and a discount reflecting credit quality of the counterparty. |
Exploratory_Costs_Tables
Exploratory Costs (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Extractive Industries [Abstract] | ||||||||||
Schedule of Capitalized Exploratory Wells | The following table sets forth capitalized exploratory well costs and includes additions pending determination of proved reserves, reclassifications to proved reserves and costs charged to expense: | |||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Capitalized exploratory well costs at beginning of period | $ | 57,600 | $ | 79,791 | $ | 70,437 | ||||
Additions pending determination of proved reserves | 946,751 | 421,599 | 406,226 | |||||||
Reclassifications due to determination of proved reserves | (882,254 | ) | (442,909 | ) | (396,872 | ) | ||||
Exploratory well costs charged to expense | (2,658 | ) | (881 | ) | — | |||||
Capitalized exploratory well costs at end of period | $ | 119,439 | $ | 57,600 | $ | 79,791 | ||||
The following table sets forth capitalized exploratory wells costs and includes amounts capitalized for a period greater than one year: | ||||||||||
(in thousands) | 31-Dec-14 | 31-Dec-13 | ||||||||
Exploratory wells in progress | $ | 18,781 | $ | 14,794 | ||||||
Capitalized exploratory well costs for a period of one year or less | 100,658 | 42,481 | ||||||||
Capitalized exploratory well costs for a period greater than one year | — | 1,206 | ||||||||
Total capitalized exploratory well costs | $ | 119,439 | $ | 58,481 | ||||||
Reconciliation_of_Earnings_Per1
Reconciliation of Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||
Schedule of Earnings Per Share Reconciliation | |||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Net | Shares | Per Share Amount | Net | Shares | Per Share Amount | Net | Shares | Per Share Amount | |||||||||||||||||
Income | Income | Income | |||||||||||||||||||||||
Basic EPS | $ | 568,032 | 72,897 | $ | 7.79 | $ | 204,554 | 72,318 | $ | 2.83 | $ | 253,562 | 72,119 | $ | 3.52 | ||||||||||
Effect of dilutive securities | |||||||||||||||||||||||||
Stock options | 216 | 112 | 196 | ||||||||||||||||||||||
Non-vested restricted stock | 58 | 20 | 1 | ||||||||||||||||||||||
Performance share awards | 104 | 21 | — | ||||||||||||||||||||||
Diluted EPS | $ | 568,032 | 73,275 | $ | 7.75 | $ | 204,554 | 72,471 | $ | 2.82 | $ | 253,562 | 72,316 | $ | 3.51 | ||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Energen had the following shares that were excluded from the computation of diluted EPS, as inclusion would be anti-dilutive. | ||||||||||||||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Stock options | 114 | 134 | 850 | ||||||||||||||||||||||
Non-vested restricted stock | 3 | 7 | — | ||||||||||||||||||||||
Performance share awards | 2 | 4 | — | ||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||
Schedule of Minimum Future Rental Payments | Minimum future rental payments required after 2014 under leases with initial or remaining noncancelable lease terms in excess of one year are as follows: | |||||
Years Ending December 31, (in thousands) | ||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 and thereafter | |
$2,698 | $2,676 | $2,468 | $2,429 | $2,326 | $— |
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ||||
Schedule of Change in Asset Retirement Obligation | The following table reflects the components of the change in Energen’s ARO balance: | |||
(in thousands) | ||||
Balance as of December 31, 2011 | $ | 107,340 | ||
Liabilities incurred | 3,994 | |||
Liabilities settled | (845 | ) | ||
Accretion expense (including discontinued operations of $1,195) | 7,534 | |||
Balance as of December 31, 2012 | 118,023 | |||
Liabilities incurred | 2,772 | |||
Liabilities settled | (5,525 | ) | ||
Accretion expense (including discontinued operations of $1,197) | 8,192 | |||
Reclassification associated with held for sale properties* | (14,929 | ) | ||
Balance as of December 31, 2013 | 108,533 | |||
Liabilities incurred | 2,266 | |||
Liabilities settled | (1,543 | ) | ||
Accretion expense (including discontinued operations of $251) | 7,859 | |||
Revision in estimated cash flows | 692 | |||
Reclassification associated with held for sale properties** | (23,747 | ) | ||
Balance as of December 31, 2014 | $ | 94,060 | ||
*Asset retirement obligation associated with North Louisiana/East Texas properties are included as liabilities related to assets held for sale in current liabilities on the balance sheet. | ||||
**Asset retirement obligation associated with certain San Juan Basin properties are included as liabilities related to assets held for sale in current liabilities on the balance sheet. |
Asset_Impairment_Tables
Asset Impairment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Impairment of Long-Lived Assets Held and Used by Asset | Impairments recognized by Energen during the years ended December 31, 2014, 2013 and 2012 are presented below: | |||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Continuing operations | ||||||||||
Permian Basin oil properties | $ | 125,693 | $ | — | $ | — | ||||
Permian Basin unproved leasehold properties | 55,063 | 13,906 | 6,304 | |||||||
San Juan Basin natural gas properties | 236,045 | — | — | |||||||
Total asset impairments from continuing operations | 416,801 | 13,906 | 6,304 | |||||||
Discontinued operations | ||||||||||
North Louisiana/East Texas oil and natural gas properties | 1,936 | 29,794 | — | |||||||
East Texas oil and natural gas properties | — | — | 21,545 | |||||||
Total asset impairments from discontinued operations | 1,936 | 29,794 | 21,545 | |||||||
Total asset impairments | $ | 418,737 | $ | 43,700 | $ | 27,849 | ||||
Acquisition_and_Disposition_of1
Acquisition and Disposition of Properties (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Acquisition and Dispositions of Oil and Gas Properties [Abstract] | ||||
Schedule of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed recognized as of February 14, 2012 (including the effects of closing adjustments). | |||
(in thousands) | ||||
Consideration given | ||||
Cash (net) | $ | 67,615 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Proved properties | $ | 65,581 | ||
Unproved leasehold properties | 911 | |||
Accounts receivable | 1,358 | |||
Accounts payable | (25 | ) | ||
Asset retirement obligation | (210 | ) | ||
Total identifiable net assets | $ | 67,615 | ||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Schedule of Discontinued Operations | The table below provides a detail of these items included in income (loss) from discontinued operations as follows: | ||||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | ||||||||||
Alagasco net income | $ | 40,646 | $ | 57,399 | $ | 49,402 | |||||||
Depreciation, depletion and amortization | (408 | ) | (598 | ) | (572 | ) | |||||||
General and administrative | 3,337 | 5,894 | 5,166 | ||||||||||
Interest expense | (17,306 | ) | (13,815 | ) | (1,693 | ) | |||||||
Other income | (347 | ) | (1,342 | ) | (977 | ) | |||||||
Income tax expense (benefit) | 5,567 | 3,728 | (727 | ) | |||||||||
Alagasco income from discontinued operations | 31,489 | 51,266 | 50,599 | ||||||||||
Energen income (loss) from discontinued operations | (2,197 | ) | 7,813 | (1,658 | ) | ||||||||
Income from discontinued operations | $ | 29,292 | $ | 59,079 | $ | 48,941 | |||||||
As discussed in Note 14, Acquisition and Disposition of Properties, and above, the following tables detail held for sale properties by major classes of assets and liabilities: | |||||||||||||
(in thousands) | 31-Dec-14 | ||||||||||||
San Juan Basin* | |||||||||||||
Oil and natural gas properties | $ | 1,166,124 | |||||||||||
Less accumulated depreciation, depletion and amortization | (770,327 | ) | |||||||||||
Total assets held for sale | 395,797 | ||||||||||||
Other long-term liabilities | (24,230 | ) | |||||||||||
Total liabilities held for sale | (24,230 | ) | |||||||||||
Total net assets held for sale | $ | 371,567 | |||||||||||
*The San Juan Basin natural gas assets which are held for sale as of December 31, 2014, do not qualify for discontinued operations as we will have ongoing operations in the San Juan Basin. | |||||||||||||
(in thousands) | 31-Dec-13 | ||||||||||||
Alabama Gas Corporation | Black Warrior Basin | North Louisiana/East Texas | Total | ||||||||||
Cash | $ | 3,032 | $ | — | $ | — | $ | 3,032 | |||||
Accounts receivable* | 103,748 | 2,829 | 1,272 | 107,849 | |||||||||
Inventories | 41,200 | — | 68 | 41,268 | |||||||||
Oil and natural gas properties | — | — | 348,379 | 348,379 | |||||||||
Less accumulated depreciation, depletion and amortization | — | (301,609 | ) | (301,609 | ) | ||||||||
Utility plant | 1,491,433 | — | — | 1,491,433 | |||||||||
Less accumulated depreciation | (605,924 | ) | — | — | (605,924 | ) | |||||||
Other property, net | 41 | — | 165 | 206 | |||||||||
Other current assets* | 29,458 | — | — | 29,458 | |||||||||
Other long-term assets | 128,780 | — | — | 128,780 | |||||||||
Total assets held for sale | 1,191,768 | 2,829 | 48,275 | 1,242,872 | |||||||||
Accounts payable | (48,653 | ) | (1,732 | ) | (11 | ) | (50,396 | ) | |||||
Royalty payable | — | (550 | ) | (869 | ) | (1,419 | ) | ||||||
Accrued taxes | (28,027 | ) | — | — | (28,027 | ) | |||||||
Notes payable to banks | (50,000 | ) | — | — | (50,000 | ) | |||||||
Other current liabilities* | (105,013 | ) | (379 | ) | (21 | ) | (105,413 | ) | |||||
Other long-term liabilities | (331,409 | ) | — | (14,983 | ) | (346,392 | ) | ||||||
Long-term debt | (249,923 | ) | — | — | (249,923 | ) | |||||||
Total liabilities held for sale | (813,025 | ) | (2,661 | ) | (15,884 | ) | (831,570 | ) | |||||
Total net assets held for sale | $ | 378,743 | $ | 168 | $ | 32,391 | $ | 411,302 | |||||
*At December 31, 2013, Alagasco’s accounts receivable included a consolidating adjustment of $4.7 million to adjust for affiliated companies receivables. Certain other current assets and other current liabilities at Alagasco of $1.6 million and $0.5 million, respectively, were reclassified to continuing operations at Energen. | |||||||||||||
Years ended December 31, (in thousands, except per share data) | 2014 | 2013 | 2012 | ||||||||||
Natural gas distribution revenues | $ | 397,648 | $ | 533,338 | $ | 451,589 | |||||||
Oil and natural gas revenues | 5,199 | 60,191 | 76,350 | ||||||||||
Total revenues | $ | 402,847 | $ | 593,529 | $ | 527,939 | |||||||
Pretax income from discontinued operations | $ | 47,220 | $ | 92,253 | $ | 79,197 | |||||||
Income tax expense | 17,928 | 33,174 | 30,256 | ||||||||||
Income From Discontinued Operations | $ | 29,292 | $ | 59,079 | $ | 48,941 | |||||||
Gain on disposal of discontinued operations, net | $ | 724,594 | $ | 5,605 | $ | — | |||||||
Income tax expense | 285,497 | 2,011 | — | ||||||||||
Gain on Disposal of Discontinued Operations, net | $ | 439,097 | $ | 3,594 | $ | — | |||||||
Total Income From Discontinued Operations | $ | 468,389 | $ | 62,673 | $ | 48,941 | |||||||
Diluted Earnings Per Average Common Share | |||||||||||||
Income from discontinued operations | $ | 0.4 | $ | 0.81 | $ | 0.68 | |||||||
Gain on disposal of discontinued operations, net | 5.99 | 0.05 | — | ||||||||||
Total Income From Discontinued Operations | $ | 6.39 | $ | 0.86 | $ | 0.68 | |||||||
Basic Earnings Per Average Common Share | |||||||||||||
Income from discontinued operations | $ | 0.4 | $ | 0.82 | $ | 0.68 | |||||||
Gain on disposal of discontinued operations, net | 6.02 | 0.05 | — | ||||||||||
Total Income From Discontinued Operations | $ | 6.42 | $ | 0.87 | $ | 0.68 | |||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||
Schedule of Cash Flow, Supplemental Disclosures | Supplemental information concerning Energen’s cash flow activities from continuing operations was as follows: | |||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Interest paid, net of amount capitalized | $ | 32,172 | $ | 38,255 | $ | 46,224 | ||||
Income taxes paid | $ | 219,505 | $ | 22,781 | $ | 18,023 | ||||
Noncash investing activities: | ||||||||||
Accrued development, exploration costs and other capital | $ | 207,461 | $ | 93,623 | $ | 116,488 | ||||
Capitalized asset retirement obligations costs | $ | 2,958 | $ | 2,772 | $ | 3,994 | ||||
Capital lease obligations | $ | — | $ | — | $ | 5,072 | ||||
Receivable from sale of Alabama Gas Corporation | $ | 8,247 | $ | — | $ | — | ||||
Noncash financing activities: | ||||||||||
Issuance of common stock for employee benefit plans | $ | 2,448 | $ | 1,015 | $ | 838 | ||||
Treasury stock acquired in connection with tax withholdings | $ | 2,547 | $ | 977 | $ | 277 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Equity [Abstract] | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides changes in the components of accumulated other comprehensive income (loss), net of the related income tax effects. | |||||||||
(in thousands) | Cash Flow Hedges | Pension and Postretirement Plans | Total | |||||||
Balance as of December 31, 2013 | $ | 12,178 | $ | (32,245 | ) | $ | (20,067 | ) | ||
Other comprehensive loss before reclassifications | (261 | ) | (5,056 | ) | (5,317 | ) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (11,917 | ) | 14,431 | 2,514 | ||||||
Change in accumulated other comprehensive income (loss) | (12,178 | ) | 9,375 | (2,803 | ) | |||||
Balance as of December 31, 2014 | $ | — | $ | (22,870 | ) | $ | (22,870 | ) | ||
Reclassification out of Accumulated Other Comprehensive Income | The following table provides details of the reclassifications out of accumulated other comprehensive income (loss). | |||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | ||||||||
(in thousands) | Amounts Reclassified | Line Item Where Presented | ||||||||
Gains (losses) on cash flow hedges: | ||||||||||
Commodity contracts | $ | 21,611 | $ | 35,684 | Gain (loss) on derivative instruments, net | |||||
Interest rate swap | (2,280 | ) | (1,723 | ) | Interest expense | |||||
Total cash flow hedges | 19,331 | 33,961 | ||||||||
Income tax expense | (7,414 | ) | (12,957 | ) | ||||||
Net of tax | 11,917 | 21,004 | ||||||||
Pension and postretirement plans: | ||||||||||
Transition obligation | (22 | ) | (319 | ) | General and administrative | |||||
Prior service cost | (248 | ) | (257 | ) | General and administrative | |||||
Actuarial losses* | (21,932 | ) | (12,357 | ) | General and administrative | |||||
Actuarial losses on settlement charges* | — | (421 | ) | Assets held for sale | ||||||
Total pension and postretirement plans | (22,202 | ) | (13,354 | ) | ||||||
Income tax benefit | 7,771 | 4,674 | ||||||||
Net of tax | (14,431 | ) | (8,680 | ) | ||||||
Total reclassifications for the period | $ | (2,514 | ) | $ | 12,324 | |||||
*In the first quarter of 2013, Energen incurred a settlement charge of $0.5 million for the payment of lump sums from the nonqualified supplemental retirement plans, of which $0.1 million was recognized in actuarial losses above and $0.4 million was recognized as a regulatory asset at Alagasco and reported in actuarial losses on settlement charges above. In the third quarter of 2013, Energen incurred a settlement charge of $64,000 for the payment of lump sums from the nonqualified supplemental retirement plans, of which $18,000 was recognized in actuarial losses above and $46,000 was recognized as a regulatory asset at Alagasco and reported in actuarial losses on settlement charges above. |
Summarized_Quarterly_Financial1
Summarized Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||
Schedule of Quarterly Operating Results | The following data summarizes quarterly operating results. | ||||||||||||
Year ended December 31, 2014 | |||||||||||||
(in thousands, except per share amounts) | First | Second | Third | Fourth | |||||||||
Revenues as originally reported | $ | 561,178 | $ | 270,097 | $ | 497,761 | $ | 611,435 | |||||
Discontinued operations* | (263,900 | ) | — | — | — | ||||||||
Adjusted revenues | $ | 297,278 | $ | 270,097 | $ | 497,761 | $ | 611,435 | |||||
Operating income as originally reported | $ | 104,599 | $ | 3,107 | $ | 48,171 | $ | 94,223 | |||||
Discontinued operations* | (73,139 | ) | — | — | — | ||||||||
Adjusted operating income | $ | 31,460 | $ | 3,107 | $ | 48,171 | $ | 94,223 | |||||
Income (loss) from continuing operations | $ | 15,647 | $ | (3,154 | ) | $ | 20,631 | $ | 66,519 | ||||
Net income (loss) | $ | 53,316 | $ | (7,953 | ) | $ | 457,251 | $ | 65,418 | ||||
Diluted earnings per average common share | |||||||||||||
Continuing operations | $ | 0.21 | $ | (0.04 | ) | $ | 0.28 | $ | 0.91 | ||||
Net income (loss) | $ | 0.73 | $ | (0.11 | ) | $ | 6.22 | $ | 0.89 | ||||
Basic earnings per average common share | |||||||||||||
Continuing operations | $ | 0.22 | $ | (0.04 | ) | $ | 0.28 | $ | 0.91 | ||||
Net income (loss) | $ | 0.73 | $ | (0.11 | ) | $ | 6.26 | $ | 0.9 | ||||
Year ended December 31, 2013 | |||||||||||||
(in thousands, except per share amounts) | First | Second | Third | Fourth | |||||||||
Revenues as originally reported | $ | 492,679 | $ | 490,057 | $ | 320,406 | $ | 472,733 | |||||
Discontinued operations* | (256,348 | ) | (123,076 | ) | (48,368 | ) | (142,771 | ) | |||||
Adjusted revenues | $ | 236,331 | $ | 366,981 | $ | 272,038 | $ | 329,962 | |||||
Operating income as originally reported | $ | 105,336 | $ | 146,304 | $ | (4,052 | ) | $ | 110,630 | ||||
Discontinued operations* | (84,146 | ) | (7,667 | ) | 21,487 | (35,755 | ) | ||||||
Adjusted operating income | $ | 21,190 | $ | 138,637 | $ | 17,435 | $ | 74,875 | |||||
Income from continuing operations | $ | 8,419 | $ | 82,422 | $ | 5,407 | $ | 45,633 | |||||
Net income (loss) | $ | 56,692 | $ | 83,067 | $ | (19,298 | ) | $ | 84,093 | ||||
Diluted earnings per average common share | |||||||||||||
Continuing operations | $ | 0.12 | $ | 1.14 | $ | 0.07 | $ | 0.62 | |||||
Net income (loss) | $ | 0.78 | $ | 1.15 | $ | (0.27 | ) | $ | 1.15 | ||||
Basic earnings per average common share | |||||||||||||
Continuing operations | $ | 0.12 | $ | 1.14 | $ | 0.07 | $ | 0.63 | |||||
Net income (loss) | $ | 0.79 | $ | 1.15 | $ | (0.27 | ) | $ | 1.16 | ||||
*As discussed in Note 15, Discontinued Operations and Held for Sale Properties, during the third quarter of 2014, Energen completed the transaction to sell Alagasco to Laclede. During the second quarter of 2014, Energen classified Alagasco as held for sale and reflected the associated operating results in discontinued operations. During the fourth quarter of 2013, Energen completed the sale of its Black Warrior Basin coalbed methane properties in Alabama. The property was classified as held for sale and reflected in discontinued operations during the third quarter of 2013. Also, during the third quarter of 2013, Energen classified its North Louisiana/East Texas natural gas and oil properties as held for sale and reflected the associated operating results in discontinued operations. |
Oil_and_Natural_Gas_Operations1
Oil and Natural Gas Operations (Unaudited) (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||||||||||
Schedule of Capitalized Costs | The following table sets forth capitalized costs: | |||||||||
(in thousands) | December 31, 2014 | December 31, 2013 | ||||||||
Proved | $ | 8,069,638 | $ | 7,043,779 | ||||||
Unproved | 142,340 | 168,975 | ||||||||
Total capitalized costs | 8,211,978 | 7,212,754 | ||||||||
Accumulated depreciation, depletion and amortization | 2,663,434 | 2,078,411 | ||||||||
Capitalized costs, net | $ | 5,548,544 | $ | 5,134,343 | ||||||
Schedule of Cost Incurred in Property Acquisition, Exploration and Development Activities | The following table sets forth costs incurred in property acquisition, exploration and development activities and includes both capitalized costs and costs charged to expense during the year: | |||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Property acquisition: | ||||||||||
Proved | $ | 2,582 | $ | 4,661 | $ | 79,862 | ||||
Unproved | 68,514 | 26,820 | 58,634 | |||||||
Exploration | 972,164 | 435,636 | 419,284 | |||||||
Development | 408,949 | 655,353 | 749,256 | |||||||
Total costs incurred | $ | 1,452,209 | $ | 1,122,470 | $ | 1,307,036 | ||||
Schedule of Results of Operations from Producing Activities | The following table sets forth results of Energen’s oil, natural gas liquids and natural gas operations from producing activities: | |||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Gross revenues* | $ | 1,679,213 | $ | 1,206,293 | $ | 1,090,948 | ||||
Production (lifting costs) | 376,495 | 351,541 | 278,193 | |||||||
Exploration expense | 28,090 | 14,036 | 13,052 | |||||||
Depreciation, depletion and amortization including asset impairments | 960,539 | 463,606 | 345,873 | |||||||
Accretion expense | 7,608 | 6,995 | 6,339 | |||||||
Income tax expense | 99,469 | 128,773 | 160,551 | |||||||
Results of operations from producing activities | $ | 207,012 | $ | 241,342 | $ | 286,940 | ||||
* The years ended December 31, 2014, 2013 and 2012 gross revenues include a pre-tax non-cash mark-to-market gain on derivatives of $315.4 million, a pre-tax non-cash mark-to-market loss on derivatives of $47.8 million and a pre-tax non-cash mark-to-market gain on derivatives of $58.8 million, respectively. | ||||||||||
Schedule of Proved Developed and Undeveloped Oil and Gas Reserves | The independent reservoir engineers have issued reports covering approximately 99 percent of Energen’s ending proved reserves indicating that in their judgment the estimates are reasonable in the aggregate. | |||||||||
Year ended December 31, 2014 | Oil MBbl | NGL MBbl | Natural Gas MMcf | Total MMBOE | ||||||
Proved reserves at beginning of period | 164,870 | 63,011 | 719,725 | 347.8 | ||||||
Revisions of previous estimates | (48,548 | ) | (15,165 | ) | (71,806 | ) | (75.7 | ) | ||
Purchases | 88 | 26 | 116 | 0.1 | ||||||
Extensions and discoveries | 76,722 | 29,695 | 141,209 | 130 | ||||||
Production | (11,818 | ) | (4,104 | ) | (59,562 | ) | (25.8 | ) | ||
Sales | (87 | ) | — | (21,756 | ) | (3.7 | ) | |||
Proved reserves at end of period | 181,227 | 73,463 | 707,926 | 372.7 | ||||||
Proved developed reserves at end of period | 118,697 | 47,621 | 589,074 | 264.5 | ||||||
Proved undeveloped reserves at end of period | 62,530 | 25,842 | 118,852 | 108.2 | ||||||
Year ended December 31, 2013 | Oil MBbl | NGL MBbl | Natural Gas MMcf | Total MMBOE | ||||||
Proved reserves at beginning of period | 155,348 | 56,155 | 809,128 | 346.4 | ||||||
Revisions of previous estimates | (680 | ) | 2,211 | 18,465 | 4.6 | |||||
Purchases | 142 | 56 | 282 | 0.2 | ||||||
Extensions and discoveries | 20,517 | 7,823 | 50,568 | 36.8 | ||||||
Production | (10,378 | ) | (3,233 | ) | (70,506 | ) | (25.4 | ) | ||
Sales | (79 | ) | (1 | ) | (88,212 | ) | (14.8 | ) | ||
Proved reserves at end of period | 164,870 | 63,011 | 719,725 | 347.8 | ||||||
Proved developed reserves at end of period | 113,795 | 42,087 | 623,305 | 259.8 | ||||||
Proved undeveloped reserves at end of period | 51,075 | 20,924 | 96,420 | 88 | ||||||
Year ended December 31, 2012 | Oil MBbl | NGL MBbl | Natural Gas MMcf | Total MMBOE | ||||||
Proved reserves at beginning of period | 129,578 | 53,957 | 957,368 | 343.1 | ||||||
Revisions of previous estimates | (8,546 | ) | (9,557 | ) | (143,704 | ) | (42.1 | ) | ||
Purchases | 7,950 | 2,569 | 10,656 | 12.4 | ||||||
Extensions and discoveries | 35,132 | 11,759 | 61,170 | 57.1 | ||||||
Production | (8,766 | ) | (2,573 | ) | (76,362 | ) | (24.1 | ) | ||
Proved reserves at end of period | 155,348 | 56,155 | 809,128 | 346.4 | ||||||
Proved developed reserves at end of period | 105,976 | 36,440 | 708,657 | 260.5 | ||||||
Proved undeveloped reserves at end of period | 49,372 | 19,715 | 100,471 | 85.9 | ||||||
Schedule of Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves | ||||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Future gross revenues | $ | 20,971,672 | $ | 19,509,305 | $ | 17,735,363 | ||||
Future production costs | 7,532,273 | 6,136,709 | 5,715,248 | |||||||
Future development costs | 1,784,738 | 1,896,602 | 1,892,600 | |||||||
Future income tax expense | 3,440,582 | 3,209,697 | 2,809,411 | |||||||
Future net cash flows | 8,214,079 | 8,266,297 | 7,318,104 | |||||||
Discount at 10% per annum | 3,994,423 | 4,248,456 | 3,618,785 | |||||||
Standardized measure of discounted future net cash | $ | 4,219,656 | $ | 4,017,841 | $ | 3,699,319 | ||||
flows relating to proved oil and natural gas reserves | ||||||||||
Schedule of Principal Sources of Changes in Standardized Measure of Discounted Future Net Cash Flows | The following are the principal sources of changes in the standardized measure of discounted future net cash flows: | |||||||||
Years ended December 31, (in thousands) | 2014 | 2013 | 2012 | |||||||
Balance at beginning of year | $ | 4,017,841 | $ | 3,699,319 | $ | 3,629,163 | ||||
Revisions to reserves proved in prior years: | ||||||||||
Net changes in prices, production costs and future development costs | (1,147,028 | ) | 566,838 | (922,792 | ) | |||||
Net changes due to revisions in quantity estimates | (1,285,394 | ) | (81,762 | ) | (383,755 | ) | ||||
Development costs incurred, previously estimated | 337,198 | 299,432 | 472,603 | |||||||
Accretion of discount | 401,784 | 369,932 | 362,916 | |||||||
Changes in timing and other* | 987,652 | (179,502 | ) | (317,244 | ) | |||||
Total revisions | (705,788 | ) | 974,938 | (788,272 | ) | |||||
New field discoveries and extensions, net of future production and development costs | 2,321,028 | 376,326 | 1,025,419 | |||||||
Sales of oil and gas produced, net of production costs | (1,054,553 | ) | (1,014,593 | ) | (812,781 | ) | ||||
Purchases | 4,241 | 4,690 | 189,755 | |||||||
Sales | (21,092 | ) | (24,876 | ) | — | |||||
Net change in income taxes | (342,021 | ) | 2,037 | 456,035 | ||||||
Net change in standardized measure of discounted future net cash flows | 201,815 | 318,522 | 70,156 | |||||||
Balance at end of year | $ | 4,219,656 | $ | 4,017,841 | $ | 3,699,319 | ||||
*Amount represents changes in production timing and other. For 2014, the production timing is significantly affected by changes related to the acceleration of the horizontal drilling program and the delay of the vertical drilling program. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Sale of Alabama Gas Corporation) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 02, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on disposal of discontinued operations, net | $724,594,000 | $5,605,000 | $0 | |
Alabama Gas Corporation | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal group, consideration | 1,600,000,000 | |||
Debt assumed | 267,000,000 | |||
Proceeds from sale | 1,320,000,000 | |||
Gain on disposal of discontinued operations, net | $726,500,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Derivatives Gains and Losses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments, net | $335,019 | ($50,024) | $84,153 |
Commodity Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Open non-cash mark-to-market gains (losses) on derivative instruments | 315,445 | -47,832 | 58,750 |
Closed gains (losses) on derivative instruments | 19,574 | -2,192 | 25,403 |
Gain (loss) on derivative instruments, net | $335,019 | ($50,024) | $84,153 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Discontinued Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income From Discontinued Operations | $468,389 | $62,673 | $48,941 |
Income from discontinued operations | 29,292 | 59,079 | 48,941 |
Alabama Gas Corporation | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Alagasco net income | 40,646 | 57,399 | 49,402 |
Depreciation, depletion and amortization | -408 | -598 | -572 |
General and administrative | 3,337 | 5,894 | 5,166 |
Interest expense | -17,306 | -13,815 | -1,693 |
Other income | -347 | -1,342 | -977 |
Income tax expense (benefit) | 5,567 | 3,728 | -727 |
Income From Discontinued Operations | 31,489 | 51,266 | 50,599 |
Parent Company | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income From Discontinued Operations | ($2,197) | $7,813 | ($1,658) |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Additional Information) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Mar. 31, 2013 |
mbbl | mbbl | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Excess tax benefit from share-based compensation | $5.90 | $3.10 | $0.60 | ||
One year spot rate | 0.70% | ||||
Derivatives transferred to not designated as hedging instruments | 2,353 | 5,078 | |||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Yield curve, term | 0 years | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Yield curve, term | 30 years |
LongTerm_Debt_and_Notes_Payabl2
Long-Term Debt and Notes Payable (Schedule of Long-Term Debt) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||
Long-term debt | 1,039,000,000 | $1,154,000,000 |
Long-term debt due within one year | 0 | 60,000,000 |
Less unamortized debt discount | 437,000 | 459,000 |
Long-term debt | 1,038,563,000 | 1,093,541,000 |
Credit Facility | Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 485,000,000 | 0 |
Medium-term Notes | 7.40% Medium-term Notes, Series A, due July 24, 2017 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 2,000,000 | 2,000,000 |
Medium-term Notes | 7.36% Medium-term Notes, Series A, due July 24, 2017 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 15,000,000 | 15,000,000 |
Medium-term Notes | 7.23% Medium-term Notes, Series A, due July 28, 2017 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 2,000,000 | 2,000,000 |
Medium-term Notes | 7.32% Medium-term Notes, Series A, due July 28, 2022 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 20,000,000 | 20,000,000 |
Medium-term Notes | 7.60% Medium-term Notes, Series A, due July 26, 2027 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 5,000,000 | 5,000,000 |
Medium-term Notes | 7.35% Medium-term Notes, Series A, due July 28, 2027 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 10,000,000 | 10,000,000 |
Medium-term Notes | 7.125% Medium-term Notes, Series B, due February 15, 2028 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 100,000,000 | 100,000,000 |
Notes | 7.40% Medium-term Notes, Series A, due July 24, 2017 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 7.40% | |
Notes | 7.36% Medium-term Notes, Series A, due July 24, 2017 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 7.36% | |
Notes | 7.23% Medium-term Notes, Series A, due July 28, 2017 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 7.23% | |
Notes | 7.32% Medium-term Notes, Series A, due July 28, 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 7.32% | |
Notes | 7.60% Medium-term Notes, Series A, due July 26, 2027 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 7.60% | |
Notes | 7.35% Medium-term Notes, Series A, due July 28, 2027 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 7.35% | |
Notes | 7.125% Medium-term Notes, Series B, due February 15, 2028 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 7.13% | |
Notes | 4.625% Notes, due September 1, 2021 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 400,000,000 | 400,000,000 |
Debt instrument, interest rate | 4.63% | |
Senior Term Loans | Senior Term Loans, (floating rate interest LIBOR plus 1.625%) | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 0 | $600,000,000 |
Senior Term Loans | Senior Term Loans, (floating rate interest LIBOR plus 1.625%) | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt Instrument, basis spread on variable rate | 1.63% |
LongTerm_Debt_and_Notes_Payabl3
Long-Term Debt and Notes Payable (Aggregate Maturities) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Maturities of Long-term Debt [Abstract] | |
2015 | $0 |
2016 | 0 |
2017 | 19,000 |
2018 | 0 |
2019 | 485,000 |
Thereafter | $535,000 |
LongTerm_Debt_and_Notes_Payabl4
Long-Term Debt and Notes Payable (Additional Information) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 02, 2014 | Oct. 30, 2012 | Nov. 17, 2014 | |
Debt Instrument [Line Items] | ||||||
Cross default provision, minimum threshold amount | $10,000,000 | |||||
Credit facility, current borrowing capacity | 2,000,000,000 | 1,250,000,000 | ||||
Loan limit percentage (less than) | 10.00% | |||||
Cross default provision, minimum debt default amount | 75,000,000 | |||||
Interest expense | 37,771,000 | 39,736,000 | 47,565,000 | |||
Amortization of debt issuance costs | 5,700,000 | 2,000,000 | 2,400,000 | |||
Interest expense, capitalized | 200,000 | 200,000 | 500,000 | |||
Unused capacity, commitment fee percentage | 30.00% | |||||
Senior Term Loans | Senior Term Loans, (floating rate interest LIBOR plus 1.625%) | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 600,000,000 | |||||
Syndicated Credit Facility | Credit Facility, September 2, 2014 | ||||||
Debt Instrument [Line Items] | ||||||
Credit facilities | 1,500,000,000 | 2,000,000,000 | ||||
Debt instrument, term | 5 years | |||||
Credit facility, current borrowing capacity | 2,100,000,000 | |||||
Debt covenant, debt to EBITDAX ratio | 4 | |||||
Debt covenant, current assets to current liabilities ratio | 1 | |||||
Debt covenant, minimum net present value of proved reserves to consolidated debt, ratio | 1.5 | |||||
Syndicated Credit Facility | Credit Facility, October 30, 2012 | ||||||
Debt Instrument [Line Items] | ||||||
Credit facilities | $1,250,000,000 | |||||
Debt instrument, term | 5 years |
LongTerm_Debt_and_Notes_Payabl5
Long-Term Debt and Notes Payable (Lines of Credit) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Abstract] | ||
Notes payable to banks | $485,000 | $489,000 |
Available for borrowings | 1,515,000 | 761,000 |
Credit facility, current borrowing capacity | 2,000,000 | 1,250,000 |
Maximum amount outstanding at any month-end | 750,000 | 859,000 |
Average daily amount outstanding | $482,166 | $772,012 |
Average daily amount outstanding, weighted average interest rates | 1.46% | 1.39% |
Amount outstanding at year-end, weighted average interest rates | 1.67% | 1.40% |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Taxes estimated to be payable currently: | |||
Federal | $161,576 | $23,342 | $16,295 |
State | 72,379 | 2,516 | 3,125 |
Total current | 233,955 | 25,858 | 19,420 |
Taxes deferred: | |||
Federal | 144,645 | 85,950 | 119,053 |
State | -34,447 | -2,300 | 5,346 |
Total deferred | 110,198 | 83,650 | 124,399 |
Total income tax expense | $344,153 | $109,508 | $143,819 |
Income_Taxes_Components_of_Inc1
Income Taxes (Components of Income Taxes, Continuing and Discontinued Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income tax expense from continuing operations | $40,728 | $74,323 | $113,563 |
Income tax expense from discontinued operations | 17,928 | 33,174 | 30,256 |
Income tax expense from gain on disposal of discontinued operations | 285,497 | 2,011 | 0 |
Total income tax expense | $344,153 | $109,508 | $143,819 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | ||
Total deferred tax assets, Current | $25,533,000 | $27,262,000 |
Total deferred tax assets, Noncurrent | 70,320,000 | 23,579,000 |
Valuation allowance, Current | -1,122,000 | -299,000 |
Valuation allowance, Noncurrent | -2,467,000 | -2,674,000 |
Total deferred tax assets, net, Current | 24,411,000 | 26,963,000 |
Total deferred tax assets, net, Noncurrent | 67,853,000 | 20,905,000 |
Deferred tax liabilities: | ||
Total deferred tax liabilities, Current | 103,575,000 | 5,713,000 |
Total deferred tax liabilities, Noncurrent | 1,068,339,000 | 828,519,000 |
Deferred tax liabilities, net, current | -79,164,000 | 0 |
Deferred tax liabilities, net, noncurrent | -1,000,486,000 | -807,614,000 |
Deferred tax asset, net, current | 0 | 21,250,000 |
Full valuation allowance | 3,600,000 | |
Oil and Gas Operations | ||
Deferred tax liabilities: | ||
State operating loss carryforwards and other tax carryforwards portion about to expire | 254,600,000 | |
Deferred tax assets, Current | ||
Deferred tax assets: | ||
Minimum tax credit | 0 | 0 |
Allowance for doubtful accounts | 244,000 | 251,000 |
Insurance and other accruals | 2,537,000 | 3,082,000 |
Compensation accruals | 11,355,000 | 12,925,000 |
Pension and other costs | 0 | 0 |
Other comprehensive income | 10,732,000 | 0 |
Derivative instruments | 0 | 10,769,000 |
State net operating losses and other carryforwards | 0 | 0 |
Other | 665,000 | 235,000 |
Deferred tax assets, Noncurrent | ||
Deferred tax assets: | ||
Minimum tax credit | 46,338,000 | 0 |
Allowance for doubtful accounts | 0 | 0 |
Insurance and other accruals | 0 | 0 |
Compensation accruals | 0 | 0 |
Pension and other costs | 7,009,000 | 3,652,000 |
Other comprehensive income | 1,581,000 | 15,350,000 |
Derivative instruments | 0 | 0 |
State net operating losses and other carryforwards | 15,392,000 | 4,577,000 |
Other | 0 | 0 |
Deferred tax liabilities: | ||
State net operating loss carryforwards, subject to expiration | 11,800,000 | |
Deferred tax liabilities, Current | ||
Deferred tax liabilities: | ||
Depreciation and basis differences | 0 | 0 |
Derivative instruments | 102,691,000 | 0 |
Other comprehensive income | 0 | 5,540,000 |
Other | 884,000 | 173,000 |
Deferred tax liabilities, Noncurrent | ||
Deferred tax liabilities: | ||
Depreciation and basis differences | 1,057,430,000 | 821,425,000 |
Derivative instruments | 0 | 2,048,000 |
Other comprehensive income | 0 | 0 |
Other | $10,909,000 | $5,046,000 |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | ||
Income tax expense at statutory federal income tax rate | $49,130 | $75,671 | $111,364 |
State income taxes, net of federal income tax benefit | 93 | 1,461 | 2,423 |
Impact of state law changes | -121 | -1,966 | 0 |
Impact of state deferred tax revaluation on San Juan properties | -8,382 | 0 | 0 |
401(k) stock dividend deduction | -232 | -449 | -514 |
Other, net | 240 | -394 | 290 |
Total income tax expense | $40,728 | $74,323 | $113,563 |
Effective income tax rate (%) | 29.01% | 34.38% | 35.69% |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | $15,986,000 | $12,555,000 | $10,593,000 |
Additions based on tax positions related to the current year | 3,873,000 | 4,546,000 | 3,731,000 |
Additions for tax positions of prior years | 19,000 | 366,000 | 269,000 |
Reductions for tax positions of prior years | -954,000 | -46,000 | -446,000 |
Lapse of statute of limitations | -1,394,000 | -1,435,000 | -1,592,000 |
Unrecognized Tax Benefits, Ending Balance | 17,530,000 | 15,986,000 | 12,555,000 |
Unrecognized tax benefits that would impact effective tax rate | 7,600,000 | ||
Income tax interest expense (income) (net of tax benefit) and penalties expense (income) | 27,000 | 15,000 | 25,000 |
Accrued interest (net of tax benefit) and penalties payments | $200,000 | $200,000 |
Employee_Benefit_Plans_Benefit
Employee Benefit Plans (Benefit Obligations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Benefit obligation: | |||||
Termination benefit charge | ($2,500,000) | ||||
Amounts recognized in balance sheet | |||||
Noncurrent assets | 0 | 0 | 8,894,000 | 8,894,000 | |
Noncurrent liabilities | -15,935,000 | -15,935,000 | -47,484,000 | -47,484,000 | |
Amounts recognized to accumulated other comprehensive income: | |||||
Total accumulated other comprehensive income (loss) | 22,870,000 | 22,870,000 | 32,245,000 | 32,245,000 | |
Nonqualified Supplemental Retirement Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Reclassification of assets | 11,000,000 | ||||
Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | 107,669,000 | 107,669,000 | 225,969,000 | 225,969,000 | |
Benefit obligation: | |||||
Balance at beginning of period | 266,294,000 | 293,075,000 | |||
Service cost | 8,329,000 | 13,293,000 | |||
Interest cost | 5,325,000 | 10,161,000 | |||
Actuarial (gain) loss | 9,078,000 | -26,909,000 | |||
Curtailment gain | -8,496,000 | -4,223,000 | |||
Transfer in connection with the sale of Alagasco | -124,783,000 | 0 | |||
Termination benefit charge | 2,477,000 | 0 | 0 | ||
Retiree drug subsidy program | 0 | 0 | |||
Benefits paid | -50,555,000 | -19,103,000 | |||
Balance at end of period | 107,669,000 | 107,669,000 | 266,294,000 | 293,075,000 | 266,294,000 |
Plan assets: | |||||
Fair value of plan assets at beginning of period | 193,457,000 | 182,796,000 | |||
Actual return (loss) on plan assets | 5,359,000 | 19,595,000 | |||
Employer contributions | 19,164,000 | 10,169,000 | |||
Transfer in connection with the sale of Alagasco | -99,883,000 | 0 | |||
Benefits paid | -50,555,000 | -19,103,000 | |||
Fair value of plan assets at end of period | 67,542,000 | 67,542,000 | 193,457,000 | 182,796,000 | 193,457,000 |
Funded status of plan | |||||
Funded status of plans | -40,127,000 | -40,127,000 | -72,837,000 | -72,837,000 | |
Amounts recognized in balance sheet | |||||
Noncurrent assets | 0 | 0 | 0 | 0 | |
Noncurrent assets in assets held for sale | 0 | 0 | 0 | 0 | |
Current liabilities | -24,626,000 | -24,626,000 | -6,145,000 | -6,145,000 | |
Noncurrent liabilities | -15,501,000 | -15,501,000 | -47,485,000 | -47,485,000 | |
Noncurrent liabilities in liabilities related to assets held for sale | 0 | 0 | -19,207,000 | -19,207,000 | |
Net asset (liability) recognized | -40,127,000 | -40,127,000 | -72,837,000 | -72,837,000 | |
Amounts recognized to accumulated other comprehensive income: | |||||
Prior service costs, net of taxes | 0 | 0 | 323,000 | 323,000 | |
Net actuarial (gain) loss, net of taxes | 22,246,000 | 22,246,000 | 37,479,000 | 37,479,000 | |
Transition obligation, net of taxes | 0 | 0 | 0 | 0 | |
Total accumulated other comprehensive income (loss) | 22,246,000 | 22,246,000 | 37,802,000 | 37,802,000 | |
Postretirement Benefit Plans | |||||
Benefit obligation: | |||||
Balance at beginning of period | 33,224,000 | 46,901,000 | |||
Service cost | 262,000 | 1,125,000 | |||
Interest cost | 716,000 | 1,931,000 | |||
Actuarial (gain) loss | 6,385,000 | -13,311,000 | |||
Curtailment gain | 0 | -1,255,000 | |||
Transfer in connection with the sale of Alagasco | -28,648,000 | 0 | |||
Termination benefit charge | 0 | 0 | |||
Retiree drug subsidy program | 48,000 | 124,000 | |||
Benefits paid | -860,000 | -2,291,000 | |||
Balance at end of period | 11,127,000 | 11,127,000 | 33,224,000 | 33,224,000 | |
Plan assets: | |||||
Fair value of plan assets at beginning of period | 55,459,000 | 48,194,000 | |||
Actual return (loss) on plan assets | -331,000 | 8,072,000 | |||
Employer contributions | 21,000 | 1,484,000 | |||
Transfer in connection with the sale of Alagasco | -43,596,000 | 0 | |||
Benefits paid | -860,000 | -2,291,000 | |||
Fair value of plan assets at end of period | 10,693,000 | 10,693,000 | 55,459,000 | 55,459,000 | |
Funded status of plan | |||||
Funded status of plans | -434,000 | -434,000 | 22,235,000 | 22,235,000 | |
Amounts recognized in balance sheet | |||||
Noncurrent assets | 0 | 0 | 8,894,000 | 8,894,000 | |
Noncurrent assets in assets held for sale | 0 | 0 | 13,341,000 | 13,341,000 | |
Current liabilities | 0 | 0 | 0 | 0 | |
Noncurrent liabilities | -434,000 | -434,000 | 0 | 0 | |
Noncurrent liabilities in liabilities related to assets held for sale | 0 | 0 | 0 | 0 | |
Net asset (liability) recognized | -434,000 | -434,000 | 22,235,000 | 22,235,000 | |
Amounts recognized to accumulated other comprehensive income: | |||||
Prior service costs, net of taxes | 0 | 0 | 0 | 0 | |
Net actuarial (gain) loss, net of taxes | 624,000 | 624,000 | -5,584,000 | -5,584,000 | |
Transition obligation, net of taxes | 0 | 0 | 27,000 | 27,000 | |
Total accumulated other comprehensive income (loss) | 624,000 | 624,000 | -5,557,000 | -5,557,000 | |
Black Warrior Basin | |||||
Benefit obligation: | |||||
Curtailment gain | ($1,200,000) |
Employee_Benefit_Plans_Other_I
Employee Benefit Plans (Other Investment Assets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Level 3 | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Unrealized gains relating to instruments held at the reporting date | $242 | ||
Transfer out of Level 3 | -14,500 | 0 | |
Nonqualified Supplemental Retirement Plans | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33,761 | 14,184 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at beginning of period | 14,184 | ||
Fair value of plan assets at end of period | 33,761 | 14,184 | |
Nonqualified Supplemental Retirement Plans | Insurance contracts | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,805 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at end of period | 14,805 | ||
Nonqualified Supplemental Retirement Plans | United States equities | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,579 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at end of period | 5,579 | ||
Nonqualified Supplemental Retirement Plans | Global equities | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,338 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at end of period | 2,338 | ||
Nonqualified Supplemental Retirement Plans | Fixed income | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11,039 | 4,255 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at beginning of period | 4,255 | ||
Fair value of plan assets at end of period | 11,039 | 4,255 | |
Nonqualified Supplemental Retirement Plans | Cash and cash equivalents | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,929 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at beginning of period | 9,929 | ||
Fair value of plan assets at end of period | 9,929 | ||
Nonqualified Supplemental Retirement Plans | Level 1 | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,917 | 9,929 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at beginning of period | 9,929 | ||
Fair value of plan assets at end of period | 7,917 | 9,929 | |
Nonqualified Supplemental Retirement Plans | Level 1 | Insurance contracts | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at end of period | 0 | ||
Nonqualified Supplemental Retirement Plans | Level 1 | United States equities | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,579 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at end of period | 5,579 | ||
Nonqualified Supplemental Retirement Plans | Level 1 | Global equities | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,338 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at end of period | 2,338 | ||
Nonqualified Supplemental Retirement Plans | Level 1 | Fixed income | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at beginning of period | 0 | ||
Fair value of plan assets at end of period | 0 | 0 | |
Nonqualified Supplemental Retirement Plans | Level 1 | Cash and cash equivalents | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,929 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at beginning of period | 9,929 | ||
Fair value of plan assets at end of period | 9,929 | ||
Nonqualified Supplemental Retirement Plans | Level 2 | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25,844 | 4,255 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at beginning of period | 4,255 | ||
Fair value of plan assets at end of period | 25,844 | 4,255 | |
Nonqualified Supplemental Retirement Plans | Level 2 | Insurance contracts | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,805 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at end of period | 14,805 | ||
Nonqualified Supplemental Retirement Plans | Level 2 | United States equities | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at end of period | 0 | ||
Nonqualified Supplemental Retirement Plans | Level 2 | Global equities | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at end of period | 0 | ||
Nonqualified Supplemental Retirement Plans | Level 2 | Fixed income | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11,039 | 4,255 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at beginning of period | 4,255 | ||
Fair value of plan assets at end of period | 11,039 | 4,255 | |
Nonqualified Supplemental Retirement Plans | Level 2 | Cash and cash equivalents | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at beginning of period | 0 | ||
Fair value of plan assets at end of period | 0 | ||
Nonqualified Supplemental Retirement Plans | Level 3 | Insurance contracts | Deferred Costs, Noncurrent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 5,600 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Fair value of plan assets at beginning of period | 5,600 | 5,332 | |
Unrealized gains relating to instruments held at the reporting date | 0 | 268 | |
Transfer out of Level 3 | -5,600 | 0 | |
Fair value of plan assets at end of period | $0 | $5,600 |
Employee_Benefit_Plans_Net_Per
Employee Benefit Plans (Net Periodic Benefit Cost) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Components of net periodic benefit cost: | |||||
Termination benefit charge | ($2,500,000) | ||||
Nonqualified Supplemental Retirement Plans | |||||
Components of net periodic benefit cost: | |||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | -18,000 | ||||
Pension Plans | |||||
Components of net periodic benefit cost: | |||||
Service cost | 8,329,000 | 13,293,000 | |||
Interest cost | 5,325,000 | 10,161,000 | |||
Expected long-term return on assets | -4,386,000 | -5,225,000 | -5,134,000 | ||
Actuarial (gain) loss | 9,078,000 | -26,909,000 | |||
Prior service cost amortization | 202,000 | 246,000 | 209,000 | ||
Actuarial loss amortization | 4,995,000 | 6,919,000 | 3,945,000 | ||
Termination benefit charge | 2,477,000 | 0 | 0 | ||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 4,082,000 | 161,000 | 0 | ||
Curtailment expense (gain) | 254,000 | -4,000 | 0 | ||
Net periodic expense | 18,930,000 | 11,789,000 | 7,339,000 | ||
Postretirement Benefit Plans | |||||
Components of net periodic benefit cost: | |||||
Service cost | 262,000 | 1,125,000 | |||
Interest cost | 716,000 | 1,931,000 | |||
Expected long-term return on assets | -1,122,000 | -787,000 | -741,000 | ||
Actuarial (gain) loss | 6,385,000 | -13,311,000 | |||
Actuarial loss amortization | -653,000 | -28,000 | 0 | ||
Termination benefit charge | 0 | 0 | |||
Transition obligation amortization | 44,000 | 229,000 | 248,000 | ||
Net periodic expense | -817,000 | 445,000 | 771,000 | ||
Continuing Operations | Pension Plans | |||||
Components of net periodic benefit cost: | |||||
Service cost | 6,808,000 | 5,196,000 | 4,023,000 | ||
Interest cost | 4,498,000 | 4,496,000 | 4,296,000 | ||
Continuing Operations | Postretirement Benefit Plans | |||||
Components of net periodic benefit cost: | |||||
Service cost | 253,000 | 386,000 | 454,000 | ||
Interest cost | $661,000 | $645,000 | $810,000 |
Employee_Benefit_Plans_Other_C
Employee Benefit Plans (Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||
Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||||||
Settlement charges | $6,900,000 | |||||||||
Settlement charges expensed | 3,700,000 | |||||||||
Black Warrior Basin | ||||||||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||||||
Curtailments gain (loss) | 1,200,000 | |||||||||
Pension Plans | ||||||||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||||||
Net actuarial (gain) loss experienced during the year | 10,495,000 | -14,138,000 | 28,748,000 | |||||||
Net actuarial loss recognized as expense | -25,433,000 | -8,934,000 | -4,908,000 | |||||||
Prior service cost recognized as expense | -246,000 | -311,000 | -340,000 | |||||||
Curtailment loss | -8,749,000 | 0 | 0 | |||||||
Total recognized in other comprehensive income (loss) | -23,933,000 | -23,383,000 | 23,500,000 | |||||||
Curtailments gain (loss) | 8,496,000 | 4,223,000 | ||||||||
Settlement charges | 39,000 | 300,000 | 400,000 | |||||||
Amortization of net actuarial loss | -841,000 | |||||||||
Postretirement Benefit Plans | ||||||||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||||||
Net actuarial (gain) loss experienced during the year | 7,649,000 | -8,057,000 | -1,787,000 | |||||||
Net actuarial loss recognized as expense | 1,908,000 | 550,000 | 0 | |||||||
Transition obligation recognized as expense | -48,000 | -283,000 | -294,000 | |||||||
Total recognized in other comprehensive income (loss) | 9,509,000 | -7,790,000 | -2,081,000 | |||||||
Curtailments gain (loss) | 0 | 1,255,000 | ||||||||
Nonqualified Supplemental Retirement Plans | ||||||||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||||||
Settlement charges | 400,000 | 1,800,000 | 26,000 | 64,000 | 500,000 | |||||
Settlement charges expensed | 100,000 | |||||||||
Nonqualified Supplemental Retirement Plans | Alabama Gas Corporation | ||||||||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||||||
Settlement charges | 46,000 | 400,000 | ||||||||
Long-term Disability Plan | ||||||||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||||||
Expense related to long-term disability plan | 200,000 | 200,000 | 200,000 | |||||||
Alagasco | ||||||||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||||||
Curtailments gain (loss) | ($300,000) |
Employee_Benefit_Plans_Assumpt
Employee Benefit Plans (Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Postretirement Benefit Plans | |||
One year spot rate | 0.70% | ||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rate assumed for next year | 7.25% | 6.50% | |
Rate to which the cost trend rate is assumed to decline | 5.00% | 5.00% | |
Year that rate reaches ultimate rate | 2021 | 2020 | |
Pension Plans | |||
Pension Plans | |||
Discount rate | 3.66% | 3.63% | 4.52% |
Expected long-term return on plan assets | 7.00% | 7.00% | 7.00% |
Rate of compensation increase for pay-related plans | 3.63% | 3.71% | 3.59% |
Postretirement Benefit Plans | |||
Discount rate | 0.96% | 4.29% | |
Rate of compensation increase | 0.00% | 3.63% | |
Postretirement Benefit Plans | |||
Pension Plans | |||
Discount rate | 4.88% | 4.36% | 4.95% |
Expected long-term return on plan assets | 7.00% | 7.00% | 7.00% |
Rate of compensation increase for pay-related plans | 3.60% | 3.70% | 3.55% |
Postretirement Benefit Plans | |||
Discount rate | 4.25% | 4.95% | |
Rate of compensation increase | 0.00% | 3.60% |
Employee_Benefit_Plans_Allocat
Employee Benefit Plans (Allocation of Plan Assets) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plans | ||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||
Target allocation, Equity securities | 100.00% | |
Actual plan asset allocations, Equity securities | 100.00% | 100.00% |
Postretirement Benefit Plans | ||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||
Target allocation, Equity securities | 100.00% | |
Actual plan asset allocations, Equity securities | 100.00% | 100.00% |
Equity Securities | Pension Plans | ||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||
Target allocation, Equity securities | 0.00% | |
Actual plan asset allocations, Equity securities | 0.00% | 34.00% |
Equity Securities | Postretirement Benefit Plans | ||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||
Target allocation, Equity securities | 60.00% | |
Actual plan asset allocations, Equity securities | 60.00% | 61.00% |
Debt Securities | Pension Plans | ||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||
Target allocation, Equity securities | 0.00% | |
Actual plan asset allocations, Equity securities | 0.00% | 28.00% |
Debt Securities | Postretirement Benefit Plans | ||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||
Target allocation, Equity securities | 40.00% | |
Actual plan asset allocations, Equity securities | 40.00% | 39.00% |
Other Securities | Pension Plans | ||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||
Target allocation, Equity securities | 100.00% | |
Actual plan asset allocations, Equity securities | 100.00% | 38.00% |
Other Securities | Postretirement Benefit Plans | ||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||
Target allocation, Equity securities | 0.00% | |
Actual plan asset allocations, Equity securities | 0.00% | 0.00% |
Employee_Benefit_Plans_Fair_Va
Employee Benefit Plans (Fair Value of Plan Assets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $14,500 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 14,500 | 17,399 | |
Unrealized gains (losses) | 992 | ||
Unrealized gains relating to instruments held at the reporting date | 242 | ||
Settlements | -4,948 | ||
Purchases | 815 | ||
Transfer out of Level 3 | -14,500 | 0 | |
Fair value of plan assets at end of period | 14,500 | ||
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 193,457 | 182,796 | 67,542 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 67,542 | ||
Fair value of plan assets at end of period | 193,457 | 182,796 | 67,542 |
Pension Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 60,231 | 67,542 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 67,542 | ||
Fair value of plan assets at end of period | 60,231 | 67,542 | |
Pension Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 133,226 | 0 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 0 | ||
Fair value of plan assets at end of period | 133,226 | 0 | |
Pension Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 14,500 | ||
Unrealized gains (losses) | 0 | ||
Unrealized gains relating to instruments held at the reporting date | 0 | ||
Settlements | 0 | ||
Purchases | 0 | ||
Fair value of plan assets at end of period | 0 | ||
Pension Plans | United States equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 34,117 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of period | 34,117 | ||
Pension Plans | United States equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 34,117 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of period | 34,117 | ||
Pension Plans | United States equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of period | 0 | ||
Pension Plans | Global equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28,780 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of period | 28,780 | ||
Pension Plans | Global equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20,144 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of period | 20,144 | ||
Pension Plans | Global equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,636 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of period | 8,636 | ||
Pension Plans | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 50,777 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of period | 50,777 | ||
Pension Plans | Fixed income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of period | 0 | ||
Pension Plans | Fixed income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 50,777 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of period | 50,777 | ||
Pension Plans | Alternative investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 37,292 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of period | 37,292 | ||
Pension Plans | Alternative investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of period | 0 | ||
Pension Plans | Alternative investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 37,292 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of period | 37,292 | ||
Pension Plans | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 42,491 | 67,542 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 67,542 | ||
Fair value of plan assets at end of period | 42,491 | 67,542 | |
Pension Plans | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,970 | 67,542 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 67,542 | ||
Fair value of plan assets at end of period | 5,970 | 67,542 | |
Pension Plans | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 36,521 | 0 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 0 | ||
Fair value of plan assets at end of period | 36,521 | 0 | |
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 55,459 | 48,194 | 10,693 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 10,693 | ||
Fair value of plan assets at end of period | 55,459 | 48,194 | 10,693 |
Postretirement Benefit Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33,715 | 6,426 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 6,426 | ||
Fair value of plan assets at end of period | 33,715 | 6,426 | |
Postretirement Benefit Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21,744 | 4,267 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 4,267 | ||
Fair value of plan assets at end of period | 21,744 | 4,267 | |
Postretirement Benefit Plans | United States equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24,152 | 4,715 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 4,715 | ||
Fair value of plan assets at end of period | 24,152 | 4,715 | |
Postretirement Benefit Plans | United States equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24,152 | 4,715 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 4,715 | ||
Fair value of plan assets at end of period | 24,152 | 4,715 | |
Postretirement Benefit Plans | United States equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 0 | ||
Fair value of plan assets at end of period | 0 | 0 | |
Postretirement Benefit Plans | Global equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,563 | 1,711 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 1,711 | ||
Fair value of plan assets at end of period | 9,563 | 1,711 | |
Postretirement Benefit Plans | Global equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,563 | 1,711 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 1,711 | ||
Fair value of plan assets at end of period | 9,563 | 1,711 | |
Postretirement Benefit Plans | Global equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 0 | ||
Fair value of plan assets at end of period | 0 | 0 | |
Postretirement Benefit Plans | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21,744 | 4,267 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 4,267 | ||
Fair value of plan assets at end of period | 21,744 | 4,267 | |
Postretirement Benefit Plans | Fixed income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 0 | ||
Fair value of plan assets at end of period | 0 | 0 | |
Postretirement Benefit Plans | Fixed income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21,744 | 4,267 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 4,267 | ||
Fair value of plan assets at end of period | $21,744 | $4,267 |
Employee_Benefit_Plans_Cash_Fl
Employee Benefit Plans (Cash Flows) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |
Anticipated required or discretionary contributions during in next fiscal year | $13,700,000 |
Pension Plans | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2015 | 92,711,000 |
2016 | 14,601,000 |
2017 | 113,000 |
2018 | 110,000 |
2019 | 107,000 |
2020-2024 | 484,000 |
Postretirement Benefit Plans | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2015 | 324,000 |
2016 | 397,000 |
2017 | 472,000 |
2018 | 541,000 |
2019 | 583,000 |
2020-2024 | 3,266,000 |
Nonqualified Supplemental Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Anticipated required or discretionary contributions during in next fiscal year | $11,000,000 |
Common_Stock_Plans_Energen_Emp
Common Stock Plans (Energen Employee Savings Plan) (Details) (Energen Employee Savings Plan, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Energen Employee Savings Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of common stock that might be diversified into other investment options | 100.00% | ||
Expense associated with contributions to employee savings plan | $3.70 | $3.70 | $3.30 |
Common_Stock_Plans_Stock_Incen
Common Stock Plans (Stock Incentive Plan) (Details) (Stock Incentive Plan) | Dec. 31, 2014 | Apr. 27, 2011 |
Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 8,600,000 | |
Number of shares remaining for issuance | 2,635,544 |
Common_Stock_Plans_Performance
Common Stock Plans (Performance Share Awards) (Details) (Performance share awards, Stock Incentive Plan, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Each unit of performance share awards equivalent to market value of number of common stock (shares) | 1 | |
Shares | ||
Nonvested, Beginning of Period, Shares | 160,819 | 0 |
Forfeited, Shares | -8,008 | |
Nonvested, End of Period, Shares | 212,968 | 160,819 |
Weighted Average Price | ||
Nonvested, Beginning of Period, Weighted Average Price (in dollars per share) | $62.13 | $0 |
Forfeited, Weighted Average Price (in dollars per share) | $60.03 | |
Nonvested, End of Period, Weighted Average Price (in dollars per share) | $71.53 | $62.13 |
Vested and paid, Shares | -14,097 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested and Paid, Weighted Average Grant Date Fair Value | $70.06 | |
Two years vesting period | ||
Shares | ||
Granted, Shares | 937 | 86,221 |
Weighted Average Price | ||
Granted, Weighted Average Price (in dollars per share) | $131.56 | $61.14 |
Three years vesting period | ||
Shares | ||
Granted, Shares | 65,309 | 82,606 |
Weighted Average Price | ||
Granted, Weighted Average Price (in dollars per share) | $93.49 | $62.96 |
Common_Stock_Plans_Stock_Optio
Common Stock Plans (Stock Options) (Details) (Stock Incentive Plan, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Shares | |||
Remaining reserved for issuance | 2,635,544 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 3 years | ||
Share-based compensation, expiration period | 10 years | ||
Shares | |||
Outstanding, Beginning of Period, Shares | 1,191,044 | 1,648,475 | 1,338,241 |
Granted, Shares | 110,307 | 137,762 | 371,040 |
Exercised, Shares | -544,280 | -590,119 | -58,471 |
Forfeited, Shares | -5,074 | -2,335 | |
Outstanding, End of Period, Shares | 757,071 | 1,191,044 | 1,648,475 |
Exercisable, Shares | 454,938 | 713,445 | 987,733 |
Remaining reserved for issuance | 2,635,544 | ||
Weighted Average Exercise Price | |||
Outstanding, Beginning of Period, Weighted Average Exercise Price (in dollars per share) | $51.06 | $47.58 | $44.77 |
Granted, Weighted Average Exercise Price (in dollars per share) | $72.55 | $49.22 | $54.11 |
Exercised, Weighted Average Exercise Price (in dollars per share) | $50.09 | $40.92 | $24.55 |
Forfeited, Weighted Average Exercise Price (in dollars per share) | $51.85 | $46.45 | |
Outstanding, End of Period, Weighted Average Exercise Price (in dollars per share) | $54.88 | $51.06 | $47.58 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $51.88 | $49.80 | $43.75 |
Common_Stock_Plans_Stock_Optio1
Common Stock Plans (Stock Options, Valuation Assumptions) (Details) (Stock options, Stock Incentive Plan, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 110,307 | 137,762 | 371,040 |
April 15, 2014 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 2,439 | ||
Fair market value of stock option at grant (in dollars per share) | 32.22 | ||
Expected life of award | 5 years 9 months 18 days | ||
Risk-free interest rate | 1.93% | ||
Annualized volatility rate | 40.70% | ||
Dividend yield | 0.20% | ||
January 22, 2014 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 107,868 | ||
Fair market value of stock option at grant (in dollars per share) | 27.57 | ||
Expected life of award | 5 years 9 months 18 days | ||
Risk-free interest rate | 2.06% | ||
Annualized volatility rate | 40.70% | ||
Dividend yield | 0.80% | ||
October 15, 2013 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 3,686 | ||
Fair market value of stock option at grant (in dollars per share) | 30.53 | ||
Expected life of award | 5 years 9 months 18 days | ||
Risk-free interest rate | 1.79% | ||
Annualized volatility rate | 40.60% | ||
Dividend yield | 0.70% | ||
January 24, 2013 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 134,076 | ||
Fair market value of stock option at grant (in dollars per share) | 16.66 | ||
Expected life of award | 5 years 9 months 18 days | ||
Risk-free interest rate | 1.01% | ||
Annualized volatility rate | 40.30% | ||
Dividend yield | 1.20% | ||
January 25, 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 371,040 | ||
Fair market value of stock option at grant (in dollars per share) | 18.79 | ||
Expected life of award | 5 years 9 months 18 days | ||
Risk-free interest rate | 1.07% | ||
Annualized volatility rate | 39.60% | ||
Dividend yield | 1.00% |
Common_Stock_Plans_Stock_Optio2
Common Stock Plans (Stock Options, Textual) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Performance share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $6,200,000 | $3,800,000 | $0 |
Tax benefit related to stock-based compensation | 2,300,000 | 1,400,000 | |
Costs not recognized | 5,600,000 | ||
Period for recognition | 1 year 5 months 12 days | ||
Stock options | Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 2,900,000 | 3,400,000 | 6,200,000 |
Tax benefit related to stock-based compensation | 1,100,000 | 1,300,000 | 2,300,000 |
Intrinsic value of stock options exercised during period | 18,500,000 | ||
Cash received from exercise of stock options | 23,100,000 | ||
Intrinsic value for outstanding options | 7,800,000 | ||
Intrinsic value for exercisable options | 5,400,000 | ||
Fair value of vested options | 5,000,000 | ||
Unrecognized compensation cost | 500,000 | ||
Stock Appreciation Rights | Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 400,000 | 9,900,000 | 900,000 |
Intrinsic value of stock options exercised during period | 4,400,000 | ||
Cash paid for settlement of stock appreciation rights | $3,000,000 | ||
Stock Appreciation Rights | 2004 Stock Appreciation Rights Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining requisite service period (in years) | 3 years |
Common_Stock_Plans_Stock_Optio3
Common Stock Plans (Stock Options, Range of Exercise Prices) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of exercisable options, Weighted Average Remaining Contractual Life (in years) | 5 years 9 months 15 days |
Stock options | Stock Incentive Plan | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options, Range of Exercise Prices, Lower Range Limit | 29.79 |
Number of outstanding options, Range of Exercise Prices, Upper Range Limit | 80.48 |
Number of outstanding options, Shares | 757,071 |
Number of outstanding options, Weighted Average Remaining Contractual Life (in years) | 6 years 8 months 5 days |
Stock options | Stock Incentive Plan | $46.45 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options, Range of Exercise Prices | 46.45 |
Number of outstanding options, Shares | 25,470 |
Number of outstanding options, Weighted Average Remaining Contractual Life (in years) | 2 years |
Stock options | Stock Incentive Plan | $60.56 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options, Range of Exercise Prices | 60.56 |
Number of outstanding options, Shares | 48,560 |
Number of outstanding options, Weighted Average Remaining Contractual Life (in years) | 3 years |
Stock options | Stock Incentive Plan | $29.79 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options, Range of Exercise Prices | 29.79 |
Number of outstanding options, Shares | 35,161 |
Number of outstanding options, Weighted Average Remaining Contractual Life (in years) | 4 years |
Stock options | Stock Incentive Plan | $46.69 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options, Range of Exercise Prices | 46.69 |
Number of outstanding options, Shares | 26,481 |
Number of outstanding options, Weighted Average Remaining Contractual Life (in years) | 5 years |
Stock options | Stock Incentive Plan | $54.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options, Range of Exercise Prices | 54.99 |
Number of outstanding options, Shares | 111,487 |
Number of outstanding options, Weighted Average Remaining Contractual Life (in years) | 6 years |
Stock options | Stock Incentive Plan | $54.11 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options, Range of Exercise Prices | 54.11 |
Number of outstanding options, Shares | 271,848 |
Number of outstanding options, Weighted Average Remaining Contractual Life (in years) | 7 years |
Stock options | Stock Incentive Plan | $48.36 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options, Range of Exercise Prices | 48.36 |
Number of outstanding options, Shares | 124,071 |
Number of outstanding options, Weighted Average Remaining Contractual Life (in years) | 8 years |
Stock options | Stock Incentive Plan | $80.48 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options, Range of Exercise Prices | 80.48 |
Number of outstanding options, Shares | 3,686 |
Number of outstanding options, Weighted Average Remaining Contractual Life (in years) | 8 years 9 months 15 days |
Stock options | Stock Incentive Plan | $72.39 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options, Range of Exercise Prices | 72.39 |
Number of outstanding options, Shares | 107,868 |
Number of outstanding options, Weighted Average Remaining Contractual Life (in years) | 9 years |
Stock options | Stock Incentive Plan | $79.63 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options, Range of Exercise Prices | 79.63 |
Number of outstanding options, Shares | 2,439 |
Number of outstanding options, Weighted Average Remaining Contractual Life (in years) | 9 years |
Common_Stock_Plans_Restricted_
Common Stock Plans (Restricted Stock) (Details) (Non-vested restricted stock, Stock Incentive Plan, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Non-vested restricted stock | Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 3 years | ||
Share-based compensation expense | $3,200,000 | $1,900,000 | $100,000 |
Tax benefit related to stock-based compensation | 1,200,000 | 700,000 | 23,000 |
Unrecognized compensation cost | $1,300,000 | ||
Remaining requisite service period (in years) | 1 year 5 months 16 days | ||
Shares | |||
Nonvested, Beginning of Period, Shares | 62,518 | 11,115 | 9,275 |
Granted, Shares | 48,904 | 52,650 | 11,115 |
Forfeited, Shares | -1,247 | ||
Vested, Shares | -11,848 | -9,275 | |
Nonvested, End of Period, Shares | 99,574 | 62,518 | 11,115 |
Weighted Average Price | |||
Nonvested, Beginning of Period, Weighted Average Price (in dollars per share) | $51.16 | $45.24 | $42.99 |
Granted, Weighted Average Price (in dollars per share) | $71.91 | $52.34 | $45.24 |
Forfeited, Weighted Average Price (in dollars per share) | $48.36 | ||
Vested and paid, Weighted Average Price (in dollars per share) | $65.94 | $42.97 | |
Nonvested, End of Period, Weighted Average Price (in dollars per share) | $59.60 | $51.16 | $45.24 |
Common_Stock_Plans_2004_Stock_
Common Stock Plans (2004 Stock Appreciation Rights Plan) (Details) (Stock Appreciation Rights, 2004 Stock Appreciation Rights Plan, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Shares | |||
Outstanding, Beginning of Period, Shares | 377,377 | 653,030 | 777,218 |
Granted, Shares | 62,749 | 88,000 | |
Exercised/forfeited, Shares | -164,976 | -363,653 | -124,188 |
Outstanding, End of Period, Shares | 275,150 | 377,377 | 653,030 |
Weighted Average Exercise Price | |||
Outstanding, Beginning of Period, Weighted Average Exercise Price (in dollars per share) | $49.48 | $44.14 | $42 |
Granted, Weighted Average Exercise Price (in dollars per share) | $72.39 | $48.36 | |
Exercised/forfeited, Weighted Average Exercise Price (in dollars per share) | $52.37 | $39.66 | $30.90 |
Outstanding, End of Period, Weighted Average Exercise Price (in dollars per share) | $52.96 | $49.48 | $44.14 |
January 27, 2010 [Member] | Originally reported | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 171,749 | ||
Fair market value of stock option at grant (in dollars per share) | $22.50 | ||
Expected life of award | 2 years 6 months 15 days | ||
Risk-free interest rate | 0.90% | ||
Annualized volatility rate | 33.40% | ||
Dividend yield | 0.13% | ||
February 13-16, 2009 [Member] | Originally reported | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 3,292 | ||
Fair market value of stock option at grant (in dollars per share) | $33.23 | ||
Expected life of award | 2 years 0 months 15 days | ||
Risk-free interest rate | 0.67% | ||
Annualized volatility rate | 33.40% | ||
Dividend yield | 0.13% | ||
January 22, 2014 [Member] | Originally reported | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 62,749 | ||
Fair market value of stock option at grant (in dollars per share) | $18.63 | ||
Expected life of award | 5 years 6 months 22 days | ||
Risk-free interest rate | 1.77% | ||
Annualized volatility rate | 33.40% | ||
Dividend yield | 0.13% | ||
January 24, 2013 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 931 | ||
Fair market value of stock option at grant (in dollars per share) | $20.14 | ||
Expected life of award | 2 years | ||
Risk-free interest rate | 0.65% | ||
Annualized volatility rate | 33.40% | ||
Dividend yield | 0.13% | ||
January 24, 2013 [Member] | Originally reported | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 87,069 | ||
Fair market value of stock option at grant (in dollars per share) | $25.93 | ||
Expected life of award | 4 years 6 months 26 days | ||
Risk-free interest rate | 1.57% | ||
Annualized volatility rate | 33.40% | ||
Dividend yield | 0.13% | ||
January 26, 2011 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 7,785 | ||
Fair market value of stock option at grant (in dollars per share) | $16.27 | ||
Expected life of award | 2 years | ||
Risk-free interest rate | 0.65% | ||
Annualized volatility rate | 33.40% | ||
Dividend yield | 0.13% | ||
January 26, 2011 [Member] | Originally reported | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 182,199 | ||
Fair market value of stock option at grant (in dollars per share) | $19.15 | ||
Expected life of award | 3 years 0 months 15 days | ||
Risk-free interest rate | 1.12% | ||
Annualized volatility rate | 33.40% | ||
Dividend yield | 0.13% | ||
January 28, 2009 [Member] | Originally reported | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 305,257 | ||
Fair market value of stock option at grant (in dollars per share) | $34.66 | ||
Expected life of award | 2 years 0 months 15 days | ||
Risk-free interest rate | 0.67% | ||
Annualized volatility rate | 33.40% | ||
Dividend yield | 0.13% | ||
February 4, 2008 [Member] | Originally reported | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 67,093 | ||
Fair market value of stock option at grant (in dollars per share) | $10.57 | ||
Expected life of award | 1 year 6 months 18 days | ||
Risk-free interest rate | 0.45% | ||
Annualized volatility rate | 33.40% | ||
Dividend yield | 0.13% | ||
February 1, 2007 [Member] | Originally reported | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Awards granted | 85,906 | ||
Fair market value of stock option at grant (in dollars per share) | $19.25 | ||
Expected life of award | 1 year 0 months 15 days | ||
Risk-free interest rate | 0.26% | ||
Annualized volatility rate | 33.40% | ||
Dividend yield | 0.13% |
Common_Stock_Plans_Other_Plans
Common Stock Plans (Other Plans) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Stock Equivalent Units | Petrotech Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Outstanding, Beginning of Period, Shares | 173,292 | 141,243 | 11,061 | 213,870 |
Granted | 76,084 | |||
Paid, Shares | -4,431 | -36,792 | -3,281 | |
Forfeited | -31,075 | -26,529 | -13,476 | |
Share-based compensation expense | $4,500,000 | $6,200,000 | $2,600,000 | |
Stock Equivalent Units | Petrotech Incentive Plan | Three years vesting period | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted | 92,418 | 102,349 | ||
Share-based compensation, vesting period | 3 years | 3 years | ||
Stock Equivalent Units | Petrotech Incentive Plan | Two years vesting period | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted | 3,768 | |||
Share-based compensation, vesting period | 2 years | |||
Stock Equivalent Units | Petrotech Incentive Plan | 18-months vesting period | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted | 40,822 | |||
Share-based compensation, vesting period | 18 months | |||
Stock Equivalent Units | Petrotech Incentive Plan | 17-month vesting period | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted | 2,952 | |||
Share-based compensation, vesting period | 17 months | |||
Management | 1997 Deferred Compensation Plan | ||||
Deferred Compensation Arrangements [Abstract] | ||||
Deferred compensation, reserved for issuance | 691,222 | 691,222 | ||
Director | Stock options | 1992 Energen Corporation Directors Stock Plan | ||||
Deferred Compensation Arrangements [Abstract] | ||||
Granted, Shares | 10,360 | 13,500 | 11,120 | |
Number of shares remaining for issuance | 127,924 |
Common_Stock_Plans_Stock_Repur
Common Stock Plans (Stock Repurchase Program) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 22, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Purchase and retirement of shares, value | $14,913,000 | |||
Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | 3,600,000 | |||
Stock repurchase program, remaining authorized repurchase amount | 3,373,161 | |||
Shares acquired in connection with stock compensation plans | 32,768 | 14,766 | 5,459 | |
Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Purchase and retirement of shares, shares | 226,839 | 0 | 0 | |
Purchase and retirement of shares, value | $2,000 |
Derivative_Commodity_Instrumen2
Derivative Commodity Instruments (Offsetting of Derivative Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Gross Amounts Recognized at Fair Value | $339,977 | $44,215 |
Gross Amounts Offset in the Balance Sheets | -17,640 | -21,313 |
Net Amount Presented in the Balance Sheets | 322,337 | 22,902 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | 322,337 | 22,902 |
Liabilities | ||
Gross Amounts Recognized at Fair Value | 18,628 | 51,615 |
Gross Amounts Offset in the Balance Sheets | -17,640 | -21,313 |
Net Amount Presented in the Balance Sheets | 988 | 30,302 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | 988 | 30,302 |
Total derivatives | 321,349 | -7,400 |
Current Assets | ||
Assets | ||
Gross Amounts Recognized at Fair Value | 339,977 | 36,223 |
Gross Amounts Offset in the Balance Sheets | -17,640 | -18,760 |
Net Amount Presented in the Balance Sheets | 322,337 | 17,463 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | 322,337 | 17,463 |
Noncurrent Assets | ||
Assets | ||
Gross Amounts Recognized at Fair Value | 0 | 7,992 |
Gross Amounts Offset in the Balance Sheets | 0 | -2,553 |
Net Amount Presented in the Balance Sheets | 0 | 5,439 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 5,439 |
Current Liabilities | ||
Liabilities | ||
Gross Amounts Recognized at Fair Value | 18,628 | 49,062 |
Gross Amounts Offset in the Balance Sheets | -17,640 | -18,760 |
Net Amount Presented in the Balance Sheets | 988 | 30,302 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | 988 | 30,302 |
Noncurrent Liabilities | ||
Liabilities | ||
Gross Amounts Recognized at Fair Value | 0 | 2,553 |
Gross Amounts Offset in the Balance Sheets | 0 | -2,553 |
Net Amount Presented in the Balance Sheets | 0 | 0 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | $0 | $0 |
Derivative_Commodity_Instrumen3
Derivative Commodity Instruments (Cash Flow Hedging Relationship in Financial Statements) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net gain (loss) recognized in other comprehensive income on derivatives (effective portion), net of tax of $23, ($6,660) and $40,720 | $37 | ($10,866) | $66,438 |
Gain (Loss) Recognized in other comprehensive income on derivatives | 23 | -6,660 | 40,720 |
Gain (Loss) on Derivative Instruments, Net | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain reclassified from accumulated other comprehensive income into income (effective portion) | 21,612 | 34,293 | 52,694 |
Gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | $0 | $835 | ($5,340) |
Derivative_Commodity_Instrumen4
Derivative Commodity Instruments (Effect of Open and Closed Derivative Commodity Instruments Not Designated as Hedging Instruments) (Details) (Gain (Loss) on Derivative Instruments, Net, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Gain (Loss) on Derivative Instruments, Net | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Open non-cash mark-to-market gains (losses) on derivative instruments | $313,408 | ($73,980) | $61,841 |
Derivative_Commodity_Instrumen5
Derivative Commodity Instruments (Reclassification) (Details) (Production Period, Year One) | 12 Months Ended | |
Dec. 31, 2014 | ||
mbbl | ||
NYMEX Swaps | Crude Oil | ||
Derivatives, Fair Value [Line Items] | ||
Total Hedged Volumes | 8,280 | |
Average contract price | 89.3 | |
WTS/WTI Basis Swaps | Crude Oil | ||
Derivatives, Fair Value [Line Items] | ||
Total Hedged Volumes | 2,160 | [1] |
Average contract price | -4.3 | [1] |
WTI/WTI Basis Swaps | Crude Oil | ||
Derivatives, Fair Value [Line Items] | ||
Total Hedged Volumes | 6,840 | [2] |
Average contract price | -4.82 | [2] |
Basin Specific Swaps, San Juan | Natural Gas | ||
Derivatives, Fair Value [Line Items] | ||
Total Hedged Volumes | 23 | |
Average Contract Price, Per Mcf | 4.13 | |
Basin Specific Swaps - Permain | Natural Gas | ||
Derivatives, Fair Value [Line Items] | ||
Total Hedged Volumes | 8 | |
Average Contract Price, Per Mcf | 4.25 | |
[1] | WTS - West Texas Sour/Midland, WTI - West Texas Intermediate/Cushing | |
[2] | WTI - West Texas Intermediate/Midland, WTI - West Texas Intermediate/Cushing |
Derivative_Commodity_Instrumen6
Derivative Commodity Instruments (Additional Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
counterparty | counterparty | ||||||||||
Derivative [Line Items] | |||||||||||
Deferred tax assets (liabilities), net | $8,200,000 | $8,200,000 | |||||||||
Counterparties with whom company holds net gain positions | 13 | 13 | |||||||||
Counterparties with whom company holds net loss positions | 1 | 1 | |||||||||
Gain (Loss) on fair value of derivatives | 335,019,000 | -50,024,000 | 84,153,000 | ||||||||
Total revenues | 611,435,000 | 497,761,000 | 270,097,000 | 297,278,000 | 329,962,000 | 272,038,000 | 366,981,000 | 236,331,000 | 1,679,213,000 | 1,206,293,000 | 1,090,948,000 |
Commodity Contract | |||||||||||
Derivative [Line Items] | |||||||||||
Gain (Loss) on fair value of derivatives | 335,019,000 | -50,024,000 | 84,153,000 | ||||||||
J.P Morgan Ventures | Commodity Contract | |||||||||||
Derivative [Line Items] | |||||||||||
Gain (Loss) on fair value of derivatives | 58,500,000 | ||||||||||
Merrill Lynch Commodities | Commodity Contract | |||||||||||
Derivative [Line Items] | |||||||||||
Gain (Loss) on fair value of derivatives | 46,300,000 | ||||||||||
Barclays Bank | Commodity Contract | |||||||||||
Derivative [Line Items] | |||||||||||
Gain (Loss) on fair value of derivatives | 39,000,000 | ||||||||||
Morgan Stanley Capital Group | Commodity Contract | |||||||||||
Derivative [Line Items] | |||||||||||
Gain (Loss) on fair value of derivatives | 35,200,000 | ||||||||||
Canadian Imperial Bank of Commerce | Commodity Contract | |||||||||||
Derivative [Line Items] | |||||||||||
Gain (Loss) on fair value of derivatives | 34,900,000 | ||||||||||
Bank of Montreal | Commodity Contract | |||||||||||
Derivative [Line Items] | |||||||||||
Gain (Loss) on fair value of derivatives | 34,300,000 | ||||||||||
Accumulated Net Gain from Discontinued Hedge Accounting | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Derivative [Line Items] | |||||||||||
Total revenues | $1,500,000 |
Fair_Value_Measurements_Deriva
Fair Value Measurements (Derivative Instruments, Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Noncurrent derivative instruments | $0 | $5,439 |
Net Amount Presented in the Balance Sheets | 322,337 | 22,902 |
Total liabilities | -988 | -30,302 |
Fair Value, Measurements, Recurring | ||
Derivative [Line Items] | ||
Derivative instruments | 322,337 | 17,463 |
Noncurrent derivative instruments | 5,439 | |
Net Amount Presented in the Balance Sheets | 322,337 | 22,902 |
Derivative instruments | -988 | -30,302 |
Total liabilities | -988 | -30,302 |
Net derivative asset (liability) | 321,349 | -7,400 |
Level 2 | Fair Value, Measurements, Recurring | ||
Derivative [Line Items] | ||
Derivative instruments | 294,865 | -1,658 |
Noncurrent derivative instruments | 4,383 | |
Net Amount Presented in the Balance Sheets | 294,865 | 2,725 |
Derivative instruments | 2,048 | -28,414 |
Total liabilities | 2,048 | -28,414 |
Net derivative asset (liability) | 296,913 | -25,689 |
Level 3 | Fair Value, Measurements, Recurring | ||
Derivative [Line Items] | ||
Derivative instruments | 27,472 | 19,121 |
Noncurrent derivative instruments | 1,056 | |
Net Amount Presented in the Balance Sheets | 27,472 | 20,177 |
Derivative instruments | -3,036 | -1,888 |
Total liabilities | -3,036 | -1,888 |
Net derivative asset (liability) | $24,436 | $18,289 |
Fair_Value_Measurements_Deriva1
Fair Value Measurements (Derivative Instruments Change in Fair Value of Level 3) (Details) (Derivative Commodity Instruments, USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Derivative Commodity Instruments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Balance at beginning of period | $18,289,000 | [1] | $89,019,000 | [1] | $65,801,000 | |
Realized gains | 22,208,000 | 55,210,000 | 63,720,000 | |||
Unrealized gains (losses) relating to instruments held at the reporting date | 2,981,000 | [2] | -71,367,000 | [2] | 22,160,000 | [2] |
Settlements during period | -19,042,000 | -54,573,000 | -62,662,000 | |||
Balance at end of period | 24,436,000 | [1] | 18,289,000 | [1] | 89,019,000 | [1] |
Unrealized gain (loss) on derivatives and commodity contracts | 20,200,000 | -7,600,000 | 19,900,000 | |||
Gain on sale of natural gas liquids and Gas Daily contracts | $3,200,000 | |||||
[1] | Included in the Level 3 fair value at December 31, 2014 are gains of $3.2 million from natural gas liquids and Gas Daily contracts which were closed at December 31, 2014 but not cash settled. | |||||
[2] | Includes $20.2 million in mark-to-market gains, $7.6 million in mark-to-market losses and $19.9 million in mark-to-market gains for the years ended December 31, 2014, 2013 and 2012, respectively. |
Fair_Value_Measurements_Level_
Fair Value Measurements (Level 3 Fair Value Measurements of Derivative Commodity Instruments) (Details) (2015, Level 3, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | |
Natural Gas | San Juan Basin | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Net derivative asset (liability), at fair value (in USD) | $28,597 | |
Natural Gas | Permian Basin | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Net derivative asset (liability), at fair value (in USD) | 10,927 | |
Crude Oil | WTS/WTI Basis Swaps | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Net derivative asset (liability), at fair value (in USD) | -3,836 | |
Crude Oil | WTI/WTI Basis Swaps | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Net derivative asset (liability), at fair value (in USD) | ($14,419) | |
Discounted Cash Flow Valuation Technique | Natural Gas | Permian Basin | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value inputs, derivative, nonmonetary notional amount (USD per Mcf) | 0.15 | [1] |
Discounted Cash Flow Valuation Technique | Minimum [Member] | Natural Gas | WTS/WTI Basis Swaps | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value inputs, derivative, nonmonetary notional amount (USD per Mcf) | 2.55 | [1] |
Discounted Cash Flow Valuation Technique | Minimum [Member] | Natural Gas | WTI/WTI Basis Swaps | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value inputs, derivative, nonmonetary notional amount (USD per Mcf) | 2.72 | [1] |
Discounted Cash Flow Valuation Technique | Minimum [Member] | Natural Gas | San Juan Basin | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value inputs, derivative, nonmonetary notional amount (USD per Mcf) | 0.13 | [1] |
Discounted Cash Flow Valuation Technique | Maximum [Member] | Natural Gas | WTS/WTI Basis Swaps | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value inputs, derivative, nonmonetary notional amount (USD per Mcf) | 2.66 | [1] |
Discounted Cash Flow Valuation Technique | Maximum [Member] | Natural Gas | WTI/WTI Basis Swaps | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value inputs, derivative, nonmonetary notional amount (USD per Mcf) | 2.82 | [1] |
Discounted Cash Flow Valuation Technique | Maximum [Member] | Natural Gas | San Juan Basin | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value inputs, derivative, nonmonetary notional amount (USD per Mcf) | 0.14 | [1] |
[1] | Discounted cash flow represents an income approach in calculating fair value including the referenced unobservable input and a discount reflecting credit quality of the counterparty. |
Fair_Value_Measurements_Additi
Fair Value Measurements (Additional Information) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
customer | ||
Concentration Risk [Line Items] | ||
Impact of ten percent change in commodity prices | $6,700,000 | |
Concentration Risk, Number of Large Customers | 2 | |
Largest Oil & Gas Purchasers, One | Accounts receivable | ||
Concentration Risk [Line Items] | ||
Concentration of credit risk | 39.00% | |
Largest Oil & Gas Purchasers, One | Total operating revenues | ||
Concentration Risk [Line Items] | ||
Concentration of credit risk | 37.00% | |
Largest Oil & Gas Purchasers, Two | Accounts receivable | ||
Concentration Risk [Line Items] | ||
Concentration of credit risk | 15.00% | |
Largest Oil & Gas Purchasers, Two | Total operating revenues | ||
Concentration Risk [Line Items] | ||
Concentration of credit risk | 13.00% | |
Reported Value Measurement | ||
Concentration Risk [Line Items] | ||
Fair value of long-term debt | 1,039,000,000 | 1,643,000,000 |
Estimate of Fair Value Measurement | ||
Concentration Risk [Line Items] | ||
Fair value of long-term debt | 993,700,000 | 1,650,900,000 |
Swap [Member] | Credit Facility | ||
Concentration Risk [Line Items] | ||
Long-term debt | 133,000,000 | |
Interest rate | 1.04% | |
Interest rate cash flow hedge liability at fair value | $800,000 | $1,800,000 |
Exploratory_Costs_Capitalized_
Exploratory Costs (Capitalized Exploratory Well Costs) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
well | |||
Increase (Decrease) in Capitalized Exploratory Well Costs that are Pending Determination of Proved Reserves [Roll Forward] | |||
Capitalized exploratory well costs at beginning of period | $57,600 | $79,791 | $70,437 |
Additions pending determination of proved reserves | 946,751 | 421,599 | 406,226 |
Reclassifications due to determination of proved reserves | -882,254 | -442,909 | -396,872 |
Exploratory well costs charged to expense | -2,658 | -881 | 0 |
Capitalized exploratory well costs at end of period | 119,439 | 57,600 | 79,791 |
Exploratory wells in progress | 18,781 | 14,794 | |
Capitalized exploratory well costs for a period of one year or less | 100,658 | 42,481 | |
Capitalized exploratory well costs for a period greater than one year | 0 | 1,206 | |
Total capitalized exploratory well costs | $119,439 | $58,481 | |
Wells in process of drilling | 38 |
Reconciliation_of_Earnings_Per2
Reconciliation of Earnings Per Share (Reconciliation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share Reconciliation | |||||||||||
Net income (loss) | $65,418 | $457,251 | ($7,953) | $53,316 | $84,093 | ($19,298) | $83,067 | $56,692 | $568,032 | $204,554 | $253,562 |
Basic Shares Outstanding (in shares) | 72,896,579 | 72,317,865 | 72,119,021 | ||||||||
Earnings Per Share, Basic (dollars per share) | $0.90 | $6.26 | ($0.11) | $0.73 | $1.16 | ($0.27) | $1.15 | $0.79 | $7.79 | $2.83 | $3.52 |
Effect of dilutive securities | |||||||||||
Net Income, Diluted EPS | $65,418 | $457,251 | ($7,953) | $53,316 | $84,093 | ($19,298) | $83,067 | $56,692 | $568,032 | $204,554 | $253,562 |
Diluted Shares Outstanding (in shares) | 73,274,631 | 72,470,622 | 72,316,214 | ||||||||
Earnings Per Share, Diluted (dollars per share) | $0.89 | $6.22 | ($0.11) | $0.73 | $1.15 | ($0.27) | $1.15 | $0.78 | $7.75 | $2.82 | $3.51 |
Stock options | |||||||||||
Effect of dilutive securities | |||||||||||
Incremental Common Shares Attributable to Share-based Payment Arrangements | 216,000 | 112,000 | 196,000 | ||||||||
Non-vested restricted stock | |||||||||||
Effect of dilutive securities | |||||||||||
Incremental Common Shares Attributable to Share-based Payment Arrangements | 58,000 | 20,000 | 1,000 | ||||||||
Performance share awards | |||||||||||
Effect of dilutive securities | |||||||||||
Incremental Common Shares Attributable to Share-based Payment Arrangements | 104,000 | 21,000 | 0 |
Reconciliation_of_Earnings_Per3
Reconciliation of Earnings Per Share (Antidilutive Securities) (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted EPS (in options or shares) | 114 | 134 | 850 |
Non-vested restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted EPS (in options or shares) | 3 | 7 | 0 |
Performance share awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted EPS (in options or shares) | 2 | 4 | 0 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Additional Information) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
pit | |
Unfavorable Regulatory Action | |
Site Contingency [Line Items] | |
Order for payment of additional royalties | $129,700 |
Preliminary estimates of order maximum liabilities for additional royalties | 24,000,000 |
Mitchell County, Texas | |
Site Contingency [Line Items] | |
Environmental Exit Costs, Number of Sites | 9 |
Environmental Exit Costs, Anticipated Cost | 2,500,000 |
Accrual for Environmental Loss Contingencies, Payments | $1,900,000 |
Crude Oil and Natural Gas [Member] | |
Site Contingency [Line Items] | |
Oil and gas delivery commitments, volume | 5.4 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Lease Obligations) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total lease payments | $24,100,000 | $25,000,000 | $20,900,000 |
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2015 | 2,698,000 | ||
2016 | 2,676,000 | ||
2017 | 2,468,000 | ||
2018 | 2,429,000 | ||
2019 | 2,326,000 | ||
2020 and thereafter | $0 |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||
Balance of ARO, beginning | $108,533 | $118,023 | $107,340 | ||
Liabilities incurred | 2,266 | 2,772 | 3,994 | ||
Liabilities settled | -1,543 | -5,525 | -845 | ||
Accretion expense | 7,859 | 8,192 | 7,534 | ||
Accretion expense of discontinued operations | 251 | 1,197 | 1,195 | ||
Revision in estimated cash flows | 692 | ||||
Reclassification associated with held for sale properties | -23,747 | [1] | -14,929 | [2] | |
Balance of ARO, end | $94,060 | $108,533 | $118,023 | ||
[1] | Asset retirement obligation associated with certain San Juan Basin properties are included as liabilities related to assets held for sale in current liabilities on the balance sheet. | ||||
[2] | Asset retirement obligation associated with North Louisiana/East Texas properties are included as liabilities related to assets held for sale in current liabilities on the balance sheet. |
Asset_Impairment_Details
Asset Impairment (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | ||||||
Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Mar. 31, 2014 | |
MMBoe | MMBoe | MMBoe | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||||
Asset impairment | $21,500,000 | $416,801,000 | $13,906,000 | $6,304,000 | ||||||
Proved developed reserves at end of period (BOE) | 264.5 | 259.8 | 260.5 | 264.5 | 259.8 | |||||
Total asset impairments from discontinued operations | 1,936,000 | 29,794,000 | 21,545,000 | |||||||
San Juan Basin | ||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||||
Asset impairment | 236,045,000 | 0 | 0 | |||||||
Proved developed reserves at end of period (BOE) | 69,043 | 69,043 | ||||||||
San Juan Basin | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||||
Asset impairment | 88,100,000 | 147,900,000 | ||||||||
Permian Basin | ||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||||
Asset impairment | 55,063,000 | 13,906,000 | 6,304,000 | 55,063,000 | ||||||
North Louisiana/East Texas | ||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||||
Total asset impairments from discontinued operations | 1,936,000 | 29,794,000 | 0 | 5,200,000 | 24,600,000 | |||||
Sales price | 30,300,000 | |||||||||
Natural Gas | ||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||||
Proved developed reserves at end of period (volume) | 589,074 | 623,305 | 708,657 | 589,074 | 623,305 | |||||
Natural Gas | North Louisiana/East Texas | ||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||||
Proved developed reserves at end of period (volume) | 23,000 | 23,000 | ||||||||
Oil Reserves | ||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||||
Proved developed reserves at end of period (volume) | 118,697 | 113,795 | 105,976 | 118,697 | 113,795 | |||||
Oil Reserves | Permian Basin | ||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||||
Asset impairment | 125,693,000 | 0 | 0 | 94,500,000 | 31,200,000 | |||||
Oil Reserves | North Louisiana/East Texas | ||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||||
Proved developed reserves at end of period (volume) | 91 | 91 | ||||||||
Alabama | Black Warrior Basin | ||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||||
Cash received from sale of oil properties | 160,000,000 | |||||||||
Gain on sale of oil and gas property | $35,000,000 | |||||||||
Black Warrior Basin | Natural Gas | ||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||||
Proved developed reserves at end of period (volume) | 97,000 |
Asset_Impairment_Summary_of_Im
Asset Impairment - Summary of Impairments (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Asset impairment | $21,500 | $416,801 | $13,906 | $6,304 | ||||
Total asset impairments from discontinued operations | 1,936 | 29,794 | 21,545 | |||||
Total asset impairments | 418,737 | 43,700 | 27,849 | |||||
Permian Basin | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Asset impairment | 55,063 | 13,906 | 6,304 | 55,063 | ||||
San Juan Basin | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Asset impairment | 236,045 | 0 | 0 | |||||
North Louisiana/East Texas | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Total asset impairments from discontinued operations | 1,936 | 29,794 | 0 | 5,200 | 24,600 | |||
East Texas oil and natural gas properties | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Total asset impairments from discontinued operations | 0 | 0 | 21,545 | |||||
Oil Reserves | Permian Basin | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Asset impairment | $125,693 | $0 | $0 | $94,500 | $31,200 |
Acquisition_and_Disposition_of2
Acquisition and Disposition of Properties (Additional Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 21, 2012 | 1-May-12 | Feb. 14, 2012 | Dec. 31, 2011 | Feb. 28, 2015 | |
MMBoe | MMBoe | MMBoe | MMBoe | MMBoe | MMBoe | |||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||
Proved developed reserves at end of period (BOE) | 264.5 | 259.8 | 264.5 | 259.8 | 260.5 | |||||||||||
Payments To Acquire Unproved Leasehold Properties | $68,500,000 | $26,800,000 | ||||||||||||||
Acquisitions, net of cash acquired | -70,730,000 | -31,331,000 | -139,563,000 | |||||||||||||
Proved Developed And Undeveloped Reserves, Net, Equivalent | 372.7 | 347.8 | 372.7 | 347.8 | 346.4 | 343.1 | ||||||||||
Percentage of undeveloped portion of proved reserves | 70.00% | 45.00% | 59.00% | |||||||||||||
Total revenues | 611,435,000 | 497,761,000 | 270,097,000 | 297,278,000 | 329,962,000 | 272,038,000 | 366,981,000 | 236,331,000 | 1,679,213,000 | 1,206,293,000 | 1,090,948,000 | |||||
Operating Income (Loss) | 94,223,000 | 48,171,000 | 3,107,000 | 31,460,000 | 74,875,000 | 17,435,000 | 138,637,000 | 21,190,000 | 176,961,000 | 252,137,000 | 364,104,000 | |||||
February 21, 2012, Reeves County | ||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||
Net acres | 4,829 | |||||||||||||||
Percentage of undivided interest | 50.00% | |||||||||||||||
Number of wells | 3 | |||||||||||||||
Cash received from sale of oil properties | 18,000,000 | |||||||||||||||
February 21, 2012, Reeves County | Contingent Sales Agreement | ||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||
Net acres | 51,720 | |||||||||||||||
Percentage of undivided interest | 50.00% | |||||||||||||||
Unproved Leasehold Properties | ||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||
Purchase price | 18,000,000 | |||||||||||||||
February 14, 2012, Permian Basin | ||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||
Purchase price | 67,615,000 | |||||||||||||||
Proved Developed And Undeveloped Reserves, Net, Equivalent | 8.2 | |||||||||||||||
Percentage of undeveloped portion of proved reserves | 81.00% | |||||||||||||||
Total revenues | 11,700,000 | |||||||||||||||
Operating Income (Loss) | 3,100,000 | |||||||||||||||
February 14, 2012, Permian Basin | Oil Reserves | ||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||
Percentage of proved reserves acquired | 64.00% | |||||||||||||||
February 14, 2012, Permian Basin | Natural Gas Liquids Reserves | ||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||
Percentage of proved reserves acquired | 22.00% | |||||||||||||||
February 14, 2012, Permian Basin | Natural Gas Reserves | ||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||
Percentage of proved reserves acquired | 14.00% | |||||||||||||||
December 2012, Permian Basin [Member] | ||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||
Purchase price | 18,700,000 | |||||||||||||||
San Juan Basin | ||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||
Proved developed reserves at end of period (BOE) | 69,043 | 69,043 | ||||||||||||||
Payments To Acquire Unproved Leasehold Properties | 22,800,000 | |||||||||||||||
Net acres | 15,000 | 15,000 | ||||||||||||||
Subsequent Event | San Juan Basin | ||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||
Sale of assets | $395,000,000 |
Acquisition_and_Disposition_of3
Acquisition and Disposition of Properties (Permian Basin) (Details) (February 14, 2012, Permian Basin, USD $) | Feb. 14, 2012 |
In Thousands, unless otherwise specified | |
February 14, 2012, Permian Basin | |
Significant Acquisitions and Disposals [Line Items] | |
Cash (net) | $67,615 |
Recognized amounts of identifiable assets acquired and liabilities assumed | |
Proved properties | 65,581 |
Unproved leasehold properties | 911 |
Accounts receivable | 1,358 |
Accounts payable | -25 |
Asset retirement obligation | -210 |
Total identifiable net assets | $67,615 |
Discontinued_Operations_Additi
Discontinued Operations (Additional Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | |||||
Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 02, 2014 | Oct. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Oct. 30, 2012 | Mar. 31, 2014 | Nov. 17, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Gain on disposal of discontinued operations, net | $724,594,000 | $5,605,000 | $0 | ||||||||
Total asset impairments from discontinued operations | 1,936,000 | 29,794,000 | 21,545,000 | ||||||||
Asset impairment | 21,500,000 | 416,801,000 | 13,906,000 | 6,304,000 | |||||||
Natural Gas Reserves | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proved developed reserves at end of period (volume) | 589,074 | 623,305 | 708,657 | 623,305 | |||||||
Oil Reserves | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proved developed reserves at end of period (volume) | 118,697 | 113,795 | 105,976 | 113,795 | |||||||
Black Warrior Basin | Natural Gas Reserves | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proved developed reserves at end of period (volume) | 97,000 | ||||||||||
Alabama Gas Corporation | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Disposal group, consideration | 1,600,000,000 | ||||||||||
Debt assumed | 267,000,000 | ||||||||||
Proceeds from sale | 1,320,000,000 | ||||||||||
Gain on disposal of discontinued operations, net | 726,500,000 | ||||||||||
Black Warrior Basin | Alabama | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Cash received from sale of oil properties | 160,000,000 | ||||||||||
Gain on sale of oil and gas property | 35,000,000 | ||||||||||
North Louisiana/East Texas | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Sales price | 30,300,000 | ||||||||||
Total asset impairments from discontinued operations | 1,936,000 | 29,794,000 | 0 | 5,200,000 | 24,600,000 | ||||||
North Louisiana/East Texas | Natural Gas Reserves | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proved developed reserves at end of period (volume) | 23,000 | 23,000 | |||||||||
North Louisiana/East Texas | Oil Reserves | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proved developed reserves at end of period (volume) | 91 | 91 | |||||||||
Credit Facility, September 2, 2014 | Syndicated Credit Facility | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Credit facilities | 1,500,000,000 | 2,000,000,000 | |||||||||
Debt instrument, term | 5 years | ||||||||||
Expiration period | 5 years | ||||||||||
Credit Facility, October 30, 2012 | Syndicated Credit Facility | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Credit facilities | $1,250,000,000 | ||||||||||
Debt instrument, term | 5 years |
Discontinued_Operations_Balanc
Discontinued Operations (Balance Sheet) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2014 | |
Assets of Disposal Group, Including Discontinued Operation [Abstract] | |||
Cash | $3,032,000 | ||
Accounts receivable | 107,849,000 | [1] | |
Inventories | 41,268,000 | ||
Oil and natural gas properties | 348,379,000 | ||
Less accumulated depreciation, depletion and amortization | -301,609,000 | ||
Utility plant | 1,491,433,000 | ||
Less accumulated depreciation | -605,924,000 | ||
Other property, net | 206,000 | ||
Other current assets | 29,458,000 | [1] | |
Other long-term assets | 128,780,000 | ||
Total assets held-for-sale | 1,242,872,000 | ||
Liabilities of Disposal Group, Including Discontinued Operation [Abstract] | |||
Accounts payable | -50,396,000 | ||
Royalty payable | -1,419,000 | ||
Accrued taxes | -28,027,000 | ||
Notes payable to banks | -50,000,000 | ||
Other current liabilities | -105,413,000 | [1] | |
Other long-term liabilities | -346,392,000 | ||
Long-term debt | -249,923,000 | ||
Total liabilities held-for-sale | -831,570,000 | ||
Total held-for-sale properties | 411,302,000 | ||
Adjustment for affiliated companies receivables | 4,700,000 | ||
Assets reclassified to continuing operations | 1,600,000 | ||
Liabilities reclassified to continuing operations | 500,000 | ||
San Juan Basin | |||
Assets of Disposal Group, Including Discontinued Operation [Abstract] | |||
Oil and natural gas properties | 1,166,124,000 | ||
Less accumulated depreciation, depletion and amortization | -770,327,000 | ||
Total assets held-for-sale | 395,797,000 | ||
Liabilities of Disposal Group, Including Discontinued Operation [Abstract] | |||
Other long-term liabilities | -24,230,000 | ||
Total liabilities held-for-sale | -24,230,000 | ||
Total held-for-sale properties | 371,567,000 | ||
Alabama Gas Corporation | |||
Assets of Disposal Group, Including Discontinued Operation [Abstract] | |||
Cash | 3,032,000 | ||
Accounts receivable | 103,748,000 | [1] | |
Inventories | 41,200,000 | ||
Oil and natural gas properties | 0 | ||
Less accumulated depreciation, depletion and amortization | 0 | ||
Utility plant | 1,491,433,000 | ||
Less accumulated depreciation | -605,924,000 | ||
Other property, net | 41,000 | ||
Other current assets | 29,458,000 | [1] | |
Other long-term assets | 128,780,000 | ||
Total assets held-for-sale | 1,191,768,000 | ||
Liabilities of Disposal Group, Including Discontinued Operation [Abstract] | |||
Accounts payable | -48,653,000 | ||
Royalty payable | 0 | ||
Accrued taxes | -28,027,000 | ||
Notes payable to banks | -50,000,000 | ||
Other current liabilities | -105,013,000 | [1] | |
Other long-term liabilities | -331,409,000 | ||
Long-term debt | -249,923,000 | ||
Total liabilities held-for-sale | -813,025,000 | ||
Total held-for-sale properties | 378,743,000 | ||
Black Warrior Basin | |||
Assets of Disposal Group, Including Discontinued Operation [Abstract] | |||
Cash | 0 | ||
Accounts receivable | 2,829,000 | [1] | |
Inventories | 0 | ||
Oil and natural gas properties | 0 | ||
Less accumulated depreciation, depletion and amortization | |||
Utility plant | 0 | ||
Less accumulated depreciation | 0 | ||
Other property, net | 0 | ||
Other current assets | 0 | [1] | |
Other long-term assets | 0 | ||
Total assets held-for-sale | 2,829,000 | ||
Liabilities of Disposal Group, Including Discontinued Operation [Abstract] | |||
Accounts payable | -1,732,000 | ||
Royalty payable | -550,000 | ||
Accrued taxes | 0 | ||
Notes payable to banks | 0 | ||
Other current liabilities | -379,000 | [1] | |
Other long-term liabilities | 0 | ||
Long-term debt | 0 | ||
Total liabilities held-for-sale | -2,661,000 | ||
Total held-for-sale properties | 168,000 | ||
North Louisiana/East Texas | |||
Assets of Disposal Group, Including Discontinued Operation [Abstract] | |||
Cash | 0 | ||
Accounts receivable | 1,272,000 | [1] | |
Inventories | 68,000 | ||
Oil and natural gas properties | 348,379,000 | ||
Less accumulated depreciation, depletion and amortization | -301,609,000 | ||
Utility plant | 0 | ||
Less accumulated depreciation | 0 | ||
Other property, net | 165,000 | ||
Other current assets | 0 | [1] | |
Other long-term assets | 0 | ||
Total assets held-for-sale | 48,275,000 | ||
Liabilities of Disposal Group, Including Discontinued Operation [Abstract] | |||
Accounts payable | -11,000 | ||
Royalty payable | -869,000 | ||
Accrued taxes | 0 | ||
Notes payable to banks | 0 | ||
Other current liabilities | -21,000 | [1] | |
Other long-term liabilities | -14,983,000 | ||
Long-term debt | 0 | ||
Total liabilities held-for-sale | -15,884,000 | ||
Total held-for-sale properties | $32,391,000 | ||
[1] | At December 31, 2013, Alagasco’s accounts receivable included a consolidating adjustment of $4.7 million to adjust for affiliated companies receivables. Certain other current assets and other current liabilities at Alagasco of $1.6 million and $0.5 million, respectively, were reclassified to continuing operations at Energen. |
Discontinued_Operations_Income
Discontinued Operations (Income Statement) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||||||||||
Natural gas distribution revenues | $397,648 | $533,338 | $451,589 | ||||||||||||||||
Oil and natural gas revenues | 5,199 | 60,191 | 76,350 | ||||||||||||||||
DIscontinued operations, total revenues | 0 | [1] | 0 | [1] | 0 | [1] | 263,900 | [1] | 142,771 | [1] | 48,368 | [1] | 123,076 | [1] | 256,348 | [1] | 402,847 | 593,529 | 527,939 |
Pretax income from discontinued operations | 47,220 | 92,253 | 79,197 | ||||||||||||||||
Income tax expense | 17,928 | 33,174 | 30,256 | ||||||||||||||||
Income from discontinued operations | 29,292 | 59,079 | 48,941 | ||||||||||||||||
Gain on disposal of discontinued operations, net | 724,594 | 5,605 | 0 | ||||||||||||||||
Income tax expense | 285,497 | 2,011 | 0 | ||||||||||||||||
Gain on Disposal of Discontinued Operations, net | 439,097 | 3,594 | 0 | ||||||||||||||||
Income From Discontinued Operations | $468,389 | $62,673 | $48,941 | ||||||||||||||||
Diluted earnings per average common share | |||||||||||||||||||
Income from discontinued operations | $0.40 | $0.81 | $0.68 | ||||||||||||||||
Gain on disposal of discontinued operations, net | $5.99 | $0.05 | $0 | ||||||||||||||||
Total Income From Discontinued Operations | $6.39 | $0.86 | $0.68 | ||||||||||||||||
Basic earnings per average common share | |||||||||||||||||||
Income from discontinued operations | $0.40 | $0.82 | $0.68 | ||||||||||||||||
Gain on disposal of discontinued operations, net | $6.02 | $0.05 | $0 | ||||||||||||||||
Total Income From Discontinued Operations | $6.42 | $0.87 | $0.68 | ||||||||||||||||
[1] | As discussed in Note 15, Discontinued Operations and Held for Sale Properties, during the third quarter of 2014, Energen completed the transaction to sell Alagasco to Laclede. During the second quarter of 2014, Energen classified Alagasco as held for sale and reflected the associated operating results in discontinued operations. During the fourth quarter of 2013, Energen completed the sale of its Black Warrior Basin coalbed methane properties in Alabama. The property was classified as held for sale and reflected in discontinued operations during the third quarter of 2013. Also, during the third quarter of 2013, Energen classified its North Louisiana/East Texas natural gas and oil properties as held for sale and reflected the associated operating results in discontinued operations. |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Schedule of Supplemental Cash Flow Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid, net of amount capitalized | $32,172 | $38,255 | $46,224 |
Income taxes paid | 219,505 | 22,781 | 18,023 |
Noncash investing activities: | |||
Accrued development, exploration costs and other capital | 207,461 | 93,623 | 116,488 |
Capitalized asset retirement obligations costs | 2,958 | 2,772 | 3,994 |
Capital lease obligations | 0 | 0 | 5,072 |
Receivable from sale of Alabama Gas Corporation | 8,247 | 0 | 0 |
Noncash financing activities: | |||
Issuance of common stock for employee benefit plans | 2,448 | 1,015 | 838 |
Treasury stock acquired in connection with tax withholdings | $2,547 | $977 | $277 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Rollforward of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2013 | ($20,067) |
Other comprehensive loss before reclassifications | -5,317 |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,514 |
Change in accumulated other comprehensive income (loss) | -2,803 |
Balance as of December 31, 2014 | -22,870 |
Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2013 | 12,178 |
Other comprehensive loss before reclassifications | -261 |
Amounts reclassified from accumulated other comprehensive income (loss) | -11,917 |
Change in accumulated other comprehensive income (loss) | -12,178 |
Balance as of December 31, 2014 | 0 |
Pension and Postretirement Plans | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2013 | -32,245 |
Other comprehensive loss before reclassifications | -5,056 |
Amounts reclassified from accumulated other comprehensive income (loss) | 14,431 |
Change in accumulated other comprehensive income (loss) | 9,375 |
Balance as of December 31, 2014 | ($22,870) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Reclassifications of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Gains (losses) on cash flow hedges: | |||||||||||||
Operating revenue | $611,435,000 | $497,761,000 | $270,097,000 | $297,278,000 | $329,962,000 | $272,038,000 | $366,981,000 | $236,331,000 | $1,679,213,000 | $1,206,293,000 | $1,090,948,000 | ||
Interest expense | -37,771,000 | -39,736,000 | -47,565,000 | ||||||||||
Pension and postretirement plans: | |||||||||||||
Income tax expense | -40,728,000 | -74,323,000 | -113,563,000 | ||||||||||
Settlement charges | 6,900,000 | ||||||||||||
Settlement charges expensed | 3,700,000 | ||||||||||||
Nonqualified Supplemental Retirement Plans | |||||||||||||
Pension and postretirement plans: | |||||||||||||
Settlement charges | 1,800,000 | 26,000 | 400,000 | 64,000 | 500,000 | ||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 18,000 | ||||||||||||
Settlement charges expensed | 100,000 | ||||||||||||
Alabama Gas Corporation | Nonqualified Supplemental Retirement Plans | |||||||||||||
Pension and postretirement plans: | |||||||||||||
Settlement charges | 46,000 | 400,000 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||
Pension and postretirement plans: | |||||||||||||
Net of tax | -2,514,000 | 12,324,000 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | |||||||||||||
Pension and postretirement plans: | |||||||||||||
Income From Continuing Operations | 19,331,000 | 33,961,000 | |||||||||||
Income tax expense | -7,414,000 | -12,957,000 | |||||||||||
Net of tax | 11,917,000 | 21,004,000 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Pension and Postretirement Plans | |||||||||||||
Pension and postretirement plans: | |||||||||||||
Transition obligation | -22,000 | -319,000 | |||||||||||
Prior service cost | -248,000 | -257,000 | |||||||||||
Actuarial losses | -21,932,000 | [1] | -12,357,000 | [1] | |||||||||
Actuarial losses on settlement charges | 0 | [1] | -421,000 | [1] | |||||||||
Income From Continuing Operations | -22,202,000 | -13,354,000 | |||||||||||
Income tax expense | 7,771,000 | 4,674,000 | |||||||||||
Net of tax | -14,431,000 | -8,680,000 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Commodity Contract | Cash Flow Hedges | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 21,611,000 | 35,684,000 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Swap | Cash Flow Hedges | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $2,280,000 | $1,723,000 | |||||||||||
[1] | In the first quarter of 2013, Energen incurred a settlement charge of $0.5 million for the payment of lump sums from the nonqualified supplemental retirement plans, of which $0.1 million was recognized in actuarial losses above and $0.4 million was recognized as a regulatory asset at Alagasco and reported in actuarial losses on settlement charges above. In the third quarter of 2013, Energen incurred a settlement charge of $64,000 for the payment of lump sums from the nonqualified supplemental retirement plans, of which $18,000 was recognized in actuarial losses above and $46,000 was recognized as a regulatory asset at Alagasco and reported in actuarial losses on settlement charges above. |
Summarized_Quarterly_Financial2
Summarized Quarterly Financial Data (Unaudited) (Quarterly Operating Results) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||
Total revenues | $611,435 | $497,761 | $270,097 | $297,278 | $329,962 | $272,038 | $366,981 | $236,331 | $1,679,213 | $1,206,293 | $1,090,948 | ||||||||
Discontinued operations | 0 | [1] | 0 | [1] | 0 | [1] | -263,900 | [1] | -142,771 | [1] | -48,368 | [1] | -123,076 | [1] | -256,348 | [1] | -402,847 | -593,529 | -527,939 |
Operating income (loss) | 94,223 | 48,171 | 3,107 | 31,460 | 74,875 | 17,435 | 138,637 | 21,190 | 176,961 | 252,137 | 364,104 | ||||||||
Discontinued operations | 0 | [1] | 0 | [1] | 0 | [1] | -73,139 | [1] | -35,755 | [1] | 21,487 | [1] | -7,667 | [1] | -84,146 | [1] | |||
Income From Continuing Operations | 66,519 | 20,631 | -3,154 | 15,647 | 45,633 | 5,407 | 82,422 | 8,419 | 99,643 | 141,881 | 204,621 | ||||||||
Net income (loss) | 65,418 | 457,251 | -7,953 | 53,316 | 84,093 | -19,298 | 83,067 | 56,692 | 568,032 | 204,554 | 253,562 | ||||||||
Diluted earnings per average common share | |||||||||||||||||||
Continuing operations (in dollars per share) | $0.91 | $0.28 | ($0.04) | $0.21 | $0.62 | $0.07 | $1.14 | $0.12 | $1.36 | $1.96 | $2.83 | ||||||||
Net income (loss) (in dollars per share) | $0.89 | $6.22 | ($0.11) | $0.73 | $1.15 | ($0.27) | $1.15 | $0.78 | $7.75 | $2.82 | $3.51 | ||||||||
Basic earnings per average common share | |||||||||||||||||||
Continuing operations (in dollars per share) | $0.91 | $0.28 | ($0.04) | $0.22 | $0.63 | $0.07 | $1.14 | $0.12 | $1.37 | $1.96 | $2.84 | ||||||||
Net income (loss) (in dollars per share) | $0.90 | $6.26 | ($0.11) | $0.73 | $1.16 | ($0.27) | $1.15 | $0.79 | $7.79 | $2.83 | $3.52 | ||||||||
Originally reported | |||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||
Total revenues | 611,435 | 497,761 | 270,097 | 561,178 | 472,733 | 320,406 | 490,057 | 492,679 | |||||||||||
Operating income (loss) | $94,223 | $48,171 | $3,107 | $104,599 | $110,630 | ($4,052) | $146,304 | $105,336 | |||||||||||
[1] | As discussed in Note 15, Discontinued Operations and Held for Sale Properties, during the third quarter of 2014, Energen completed the transaction to sell Alagasco to Laclede. During the second quarter of 2014, Energen classified Alagasco as held for sale and reflected the associated operating results in discontinued operations. During the fourth quarter of 2013, Energen completed the sale of its Black Warrior Basin coalbed methane properties in Alabama. The property was classified as held for sale and reflected in discontinued operations during the third quarter of 2013. Also, during the third quarter of 2013, Energen classified its North Louisiana/East Texas natural gas and oil properties as held for sale and reflected the associated operating results in discontinued operations. |
Oil_and_Natural_Gas_Operations2
Oil and Natural Gas Operations (Unaudited) (Capitalized Costs) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||
Proved | $8,069,638 | $7,043,779 |
Unproved | 142,340 | 168,975 |
Total capitalized costs | 8,211,978 | 7,212,754 |
Accumulated depreciation, depletion and amortization | 2,663,434 | 2,078,411 |
Capitalized costs, net | $5,548,544 | $5,134,343 |
Oil_and_Natural_Gas_Operations3
Oil and Natural Gas Operations (Unaudited) (Costs Incurred) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property acquisition: | |||
Proved | $2,582 | $4,661 | $79,862 |
Unproved | 68,514 | 26,820 | 58,634 |
Exploration | 972,164 | 435,636 | 419,284 |
Development | 408,949 | 655,353 | 749,256 |
Total costs incurred | $1,452,209 | $1,122,470 | $1,307,036 |
Oil_and_Natural_Gas_Operations4
Oil and Natural Gas Operations (Unaudited) (Results of Operations) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||||||
Gross revenues | $1,679,213 | [1] | $1,206,293 | [1] | $1,090,948 | [1] |
Production (lifting costs) | 376,495 | 351,541 | 278,193 | |||
Exploration expense | 28,090 | 14,036 | 13,052 | |||
Depreciation, depletion and amortization including asset impairments | 960,539 | 463,606 | 345,873 | |||
Accretion expense | 7,608 | 6,995 | 6,339 | |||
Income tax expense | 99,469 | 128,773 | 160,551 | |||
Results of operations from producing activities | $207,012 | $241,342 | $286,940 | |||
[1] | The years ended December 31, 2014, 2013 and 2012 gross revenues include a pre-tax non-cash mark-to-market gain on derivatives of $315.4 million, a pre-tax non-cash mark-to-market loss on derivatives of $47.8 million and a pre-tax non-cash mark-to-market gain on derivatives of $58.8 million, respectively. |
Oil_and_Natural_Gas_Operations5
Oil and Natural Gas Operations (Unaudited) (Oil and Gas Operations) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
MMBoe | MMBoe | MMBoe | |
Proved Developed and Undeveloped Reserves [Roll Forward] | |||
Proved reserves at beginning of period, total | 347.8 | 346.4 | 343.1 |
Revisions of previous estimates, total | -75.7 | 4.6 | -42.1 |
Purchases, total | 0.1 | 0.2 | 12.4 |
Extensions and discoveries, total | 130 | 36.8 | 57.1 |
Production, total | -25.8 | -25.4 | -24.1 |
Sales, total | -3.7 | -14.8 | |
Proved reserves at end of period, total | 372.7 | 347.8 | 346.4 |
Proved developed reserves at end of period (BOE) | 264.5 | 259.8 | 260.5 |
Proved undeveloped reserves at end of period (BOE) | 108.2 | 88 | 85.9 |
Oil Reserves | |||
Proved Developed and Undeveloped Reserves [Roll Forward] | |||
Proved reserves at beginning of period | 164,870 | 155,348 | 129,578 |
Revisions of previous estimates | -48,548 | -680 | -8,546 |
Purchases | 88 | 142 | 7,950 |
Extensions and discoveries | 76,722 | 20,517 | 35,132 |
Production | -11,818 | -10,378 | -8,766 |
Sales | -87 | -79 | |
Proved reserves at end of period | 181,227 | 164,870 | 155,348 |
Proved developed reserves at end of period (volume) | 118,697 | 113,795 | 105,976 |
Proved undeveloped reserves at end of period (volume) | 62,530 | 51,075 | 49,372 |
Natural Gas Liquids Reserves | |||
Proved Developed and Undeveloped Reserves [Roll Forward] | |||
Proved reserves at beginning of period | 63,011 | 56,155 | 53,957 |
Revisions of previous estimates | -15,165 | 2,211 | -9,557 |
Purchases | 26 | 56 | 2,569 |
Extensions and discoveries | 29,695 | 7,823 | 11,759 |
Production | -4,104 | -3,233 | -2,573 |
Sales | 0 | -1 | |
Proved reserves at end of period | 73,463 | 63,011 | 56,155 |
Proved developed reserves at end of period (volume) | 47,621 | 42,087 | 36,440 |
Proved undeveloped reserves at end of period (volume) | 25,842 | 20,924 | 19,715 |
Natural Gas Reserves | |||
Proved Developed and Undeveloped Reserves [Roll Forward] | |||
Proved reserves at beginning of period | 719,725 | 809,128 | 957,368 |
Revisions of previous estimates | -71,806 | 18,465 | -143,704 |
Purchases | 116 | 282 | 10,656 |
Extensions and discoveries | 141,209 | 50,568 | 61,170 |
Production | -59,562 | -70,506 | -76,362 |
Sales | -21,756 | -88,212 | |
Proved reserves at end of period | 707,926 | 719,725 | 809,128 |
Proved developed reserves at end of period (volume) | 589,074 | 623,305 | 708,657 |
Proved undeveloped reserves at end of period (volume) | 118,852 | 96,420 | 100,471 |
Oil_and_Natural_Gas_Operations6
Oil and Natural Gas Operations (Unaudited) (Oil and Gas Operations, Activities) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
MMBoe | MMBoe | MMBoe | |
Reserve Quantities [Line Items] | |||
Reserves included in engineer estimates, percent | 99.00% | ||
Revisions of previous estimates | -75.7 | 4.6 | -42.1 |
Purchases | 0.1 | 0.2 | 12.4 |
Extensions and discoveries | 130 | 36.8 | 57.1 |
Percentage of undeveloped portion of proved reserves | 70.00% | 45.00% | 59.00% |
Percentage of developed portion of proved reserves | 30.00% | 55.00% | 41.00% |
Sales | 3.7 | 14.8 | |
Extension Drilling | |||
Reserve Quantities [Line Items] | |||
Extensions and discoveries | 89.6 | 21.6 | 45.6 |
Exploratory Drilling | |||
Reserve Quantities [Line Items] | |||
Extensions and discoveries | 40.4 | 15.2 | 11.5 |
Price Related Revisions | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | 3.9 | 7 | |
No Longer Expected to be Drilled | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -5.3 | ||
No Longer Expected to Be Drilled Beyond Five Years | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -53.4 | -4.6 | |
San Juan Basin | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | 1.6 | 2.2 | -19.7 |
Extensions and discoveries | 1.1 | 2.3 | 0.9 |
Number of well locations | 16 | 6 | |
Proved Developed and Undeveloped Reserves, Pay-Add Locations | 10 | 30 | |
San Juan Basin | Price Related Revisions | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | 4.4 | 5.9 | |
San Juan Basin | Higher Operating Costs | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -1.5 | ||
San Juan Basin | No Longer Expected to be Drilled | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -4.6 | ||
San Juan Basin | Change in Year-End Pricing Revisions | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -22.5 | ||
Permian Basin | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -77.3 | 1.2 | -15.8 |
Extensions and discoveries | 128.6 | 34.4 | 56.1 |
Number of well locations | 361 | 262 | 422 |
Permian Basin | Price Related Revisions | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | 0.4 | -1 | |
Permian Basin | Higher Operating Costs | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -5.4 | ||
Permian Basin | Reclassifying as Unproved | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -53.4 | ||
Permian Basin | Well Performance Revisions | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -13.3 | ||
Permian Basin | No Longer Expected to be Drilled | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -0.7 | ||
Permian Basin | Change in Year-End Pricing Revisions | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -0.5 | ||
North Louisiana and East Texas Natural Gas and Oil Properties [Member] | |||
Reserve Quantities [Line Items] | |||
Sales | 3.7 | ||
Black Warrior Basin | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -5.1 | ||
Sales | 14.8 | ||
Black Warrior Basin | Change in Year-End Pricing Revisions | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | -5.9 |
Oil_and_Natural_Gas_Operations7
Oil and Natural Gas Operations (Unaudited) (Standardized Measure of Discounted Future Net Cash Flows) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||||||
Deferred hedging gain (loss) excluded from calculation of standardized measure of future net cash flows | $315,400,000 | $21,600,000 | $74,800,000 | |||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Standardized Measure [Abstract] | ||||||
Future gross revenues | 20,971,672,000 | 19,509,305,000 | 17,735,363,000 | |||
Future production costs | 7,532,273,000 | 6,136,709,000 | 5,715,248,000 | |||
Future development costs | 1,784,738,000 | 1,896,602,000 | 1,892,600,000 | |||
Future income tax expense | 3,440,582,000 | 3,209,697,000 | 2,809,411,000 | |||
Future net cash flows | 8,214,079,000 | 8,266,297,000 | 7,318,104,000 | |||
Discount at 10% per annum | 3,994,423,000 | 4,248,456,000 | 3,618,785,000 | |||
Standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves | 4,219,656,000 | 4,017,841,000 | 3,699,319,000 | |||
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flow Relating to Proved Oil and Gas Reserves [Roll Forward] | ||||||
Balance at beginning of year | 4,017,841,000 | 3,699,319,000 | 3,629,163,000 | |||
Revisions to reserves proved in prior years: | ||||||
Net changes in prices, production costs and future development costs | -1,147,028,000 | 566,838,000 | -922,792,000 | |||
Net changes due to revisions in quantity estimates | -1,285,394,000 | -81,762,000 | -383,755,000 | |||
Development costs incurred, previously estimated | 337,198,000 | 299,432,000 | 472,603,000 | |||
Accretion of discount | 401,784,000 | 369,932,000 | 362,916,000 | |||
Changes in timing and other | 987,652,000 | [1] | -179,502,000 | [1] | -317,244,000 | [1] |
Total revisions | -705,788,000 | 974,938,000 | -788,272,000 | |||
New field discoveries and extensions, net of future production and development costs | 2,321,028,000 | 376,326,000 | 1,025,419,000 | |||
Sales of oil and gas produced, net of production costs | -1,054,553,000 | -1,014,593,000 | -812,781,000 | |||
Purchases | 4,241,000 | 4,690,000 | 189,755,000 | |||
Sales | -21,092,000 | -24,876,000 | 0 | |||
Net change in income taxes | -342,021,000 | 2,037,000 | 456,035,000 | |||
Net change in standardized measure of discounted future net cash flows | 201,815,000 | 318,522,000 | 70,156,000 | |||
Balance at end of year | $4,219,656,000 | $4,017,841,000 | $3,699,319,000 | |||
[1] | Amount represents changes in production timing and other. For 2014, the production timing is significantly affected by changes related to the acceleration of the horizontal drilling program and the delay of the vertical drilling program. |