Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
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 | 73,087,252 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $1,530 | $1,852 |
Short-term investments | 309,000 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $681 and $688 at March 31, 2015 and December 31, 2014, respectively | 137,720 | 157,678 |
Inventories | 17,763 | 14,251 |
Assets held for sale | 0 | 395,797 |
Derivative instruments | 272,675 | 322,337 |
Prepayments and other | 18,009 | 27,445 |
Total current assets | 756,697 | 919,360 |
Oil and natural gas properties, successful efforts method | ||
Proved properties | 7,263,661 | 6,903,514 |
Unproved properties | 164,208 | 142,340 |
Less accumulated depreciation, depletion and amortization | 2,016,936 | 1,893,106 |
Oil and natural gas properties, net | 5,410,933 | 5,152,748 |
Other property and equipment, net | 46,248 | 46,389 |
Total property, plant and equipment, net | 5,457,181 | 5,199,137 |
Other assets | 14,865 | 19,761 |
TOTAL ASSETS | 6,228,743 | 6,138,258 |
Current Liabilities | ||
Accounts payable | 97,563 | 101,453 |
Accrued taxes | 17,199 | 5,530 |
Accrued wages and benefits | 16,089 | 21,553 |
Accrued capital costs | 159,026 | 207,461 |
Revenue and royalty payable | 66,761 | 72,047 |
Liabilities related to assets held for sale | 0 | 24,230 |
Pension liabilities | 29,442 | 24,609 |
Deferred income taxes | 53,867 | 79,164 |
Derivative instruments | 12,870 | 988 |
Other | 17,658 | 23,288 |
Total current liabilities | 470,475 | 560,323 |
Long-term debt | 1,238,569 | 1,038,563 |
Asset retirement obligations | 97,315 | 94,060 |
Pension and other postretirement liabilities | 534 | 15,935 |
Deferred income taxes | 1,010,770 | 1,000,486 |
Noncurrent derivative instruments | 1,018 | 0 |
Other long-term liabilities | 10,885 | 14,287 |
Total liabilities | 2,829,566 | 2,723,654 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred stock, cumulative, $0.01 par value, 5,000,000 shares authorized | 0 | 0 |
Common shareholders’ equity | ||
Common stock, $0.01 par value; 150,000,000 shares authorized; 76,051,599 shares and 75,875,711 shares issued at March 31, 2015 and December 31, 2014, respectively | 761 | 759 |
Premium on capital stock | 568,395 | 564,438 |
Retained earnings | 2,980,939 | 2,997,821 |
Accumulated other comprehensive income (loss), net of tax | ||
Pension and postretirement plans | -21,019 | -22,870 |
Deferred compensation plan | 2,953 | 2,862 |
Treasury stock, at cost; 3,046,233 shares and 2,980,598 shares at March 31, 2015 and December 31, 2014, respectively | -132,852 | -128,406 |
Total shareholders’ equity | 3,399,177 | 3,414,604 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $6,228,743 | $6,138,258 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Current Assets | ||
Allowance for doubtful accounts | $681 | $688 |
Shareholders’ Equity | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 76,051,599 | 75,875,711 |
Treasury stock, shares | 3,046,233 | 2,980,598 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Oil, natural gas liquids and natural gas sales | $187,822 | $350,822 |
Gain (loss) on derivative instruments, net | 34,036 | -53,391 |
Total revenues | 221,858 | 297,431 |
Operating Costs and Expenses | ||
Oil, natural gas liquids and natural gas production | 67,754 | 67,444 |
Production and ad valorem taxes | 19,065 | 27,324 |
Depreciation, depletion and amortization | 134,381 | 124,220 |
Asset impairment | 6,583 | 1,246 |
Exploration | 763 | 11,568 |
General and administrative | 32,055 | 32,173 |
Accretion of discount on asset retirement obligations | 2,010 | 1,843 |
(Gain) loss on sale of assets and other | -28,344 | 153 |
Total costs and expenses | 234,267 | 265,971 |
Operating Income (Loss) | -12,409 | 31,460 |
Other Income (Expense) | ||
Interest expense | -11,758 | -7,888 |
Other income | 46 | 323 |
Total other expense | -11,712 | -7,565 |
Income (Loss) From Continuing Operations Before Income Taxes | -24,121 | 23,895 |
Income tax expense (benefit) | -8,701 | 8,248 |
Income (Loss) From Continuing Operations | -15,420 | 15,647 |
Discontinued Operations, net of tax | ||
Income from discontinued operations | 0 | 38,719 |
Loss on disposal of discontinued operations | 0 | -1,050 |
Income From Discontinued Operations | 0 | 37,669 |
Net Income (Loss) | ($15,420) | $53,316 |
Diluted Earnings Per Average Common Share | ||
Continuing operations (in dollars per share) | ($0.21) | $0.21 |
Discontinued operations (in dollars per share) | $0 | $0.52 |
Net Income (Loss) (in dollars per share) | ($0.21) | $0.73 |
Basic Earnings Per Average Common Share | ||
Continuing Operations (in dollars per share) | ($0.21) | $0.21 |
Discontinued operations (in dollars per share) | $0 | $0.52 |
Net Income (Loss) (in dollars per share) | ($0.21) | $0.73 |
Dividends Per Common (In dollar per shares) | $0.02 | $0.15 |
Diluted Shares Outstanding (in shares) | 72,830 | 73,045 |
Basic Shares Outstanding (in shares) | 72,830 | 72,629 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Income (Loss) | ($15,420) | $53,316 |
Other comprehensive income (loss): | ||
Total cash flow hedges | 0 | -2,337 |
Pension and postretirement plans: | ||
Amortization of net benefit obligation at transition, net of tax of $0 and $3, respectively | 0 | 6 |
Amortization of prior service cost, net of tax of $0 and $26, respectively | 0 | 48 |
Amortization of net loss, including settlement charges, net of tax of $996 and $2,994, respectively | 1,851 | 5,559 |
Total pension and postretirement plans | 1,851 | 5,613 |
Comprehensive Income (Loss) | -13,569 | 56,592 |
Commodity contracts | ||
Other comprehensive income (loss): | ||
Current period change in fair value of derivative commodity instruments, net of tax | 0 | 2 |
Reclassification adjustment for derivative commodity instruments, net of tax | 0 | -2,513 |
Interest rate swap | ||
Other comprehensive income (loss): | ||
Current period change in fair value of derivative commodity instruments, net of tax | 0 | -115 |
Reclassification adjustment for derivative commodity instruments, net of tax | $0 | $289 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Amortization of net obligation at transition, tax | $0 | $3 |
Amortization of prior service cost, tax | 0 | 26 |
Amortization of net loss including settlement charges, tax | 996 | 2,994 |
Commodity contracts | ||
Current period change in fair value of interest rate swap, tax | 0 | 1 |
Reclassification adjustment for derivative instruments, tax | 0 | -1,541 |
Interest rate swap | ||
Current period change in fair value of interest rate swap, tax | 0 | -62 |
Reclassification adjustment for derivative instruments, tax | $0 | $157 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net Income (Loss) | ($15,420) | $53,316 |
Income from discontinued operations | 0 | -37,669 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 134,381 | 124,220 |
Asset impairment | 6,583 | 1,246 |
Accretion of discount on asset retirement obligations | 2,010 | 1,843 |
Deferred income taxes | -16,009 | 10,958 |
Change in derivative fair value | 30,987 | 39,555 |
Gain on sale of assets | -28,502 | -60 |
Stock-based compensation expense | -61 | 5,041 |
Exploration, including dry holes | 24 | 31 |
Discontinued operations | 0 | 111,678 |
Other, net | -10,968 | 6,335 |
Net change in: | ||
Accounts receivable | 42,908 | -32,463 |
Inventories | -3,512 | 247 |
Accounts payable | -11,814 | 24,161 |
Accrued taxes/income tax receivable | 13,633 | 1,273 |
Pension and other postretirement benefit contributions | -10,872 | -2,290 |
Other current assets and liabilities | 9,634 | -10,471 |
Net cash provided by operating activities | 143,002 | 296,951 |
Investing Activities | ||
Additions to oil and natural gas properties | -395,317 | -266,869 |
Acquisitions, net of cash acquired | -30,767 | -6,537 |
Proceeds from the sale of assets | 392,802 | 7,313 |
Purchase of short-term investments | -649,000 | -84,000 |
Sale of short-term investments | 340,000 | 84,000 |
Discontinued operations | 0 | -14,731 |
Other, net | 0 | -150 |
Net cash used in investing activities | -342,282 | -280,974 |
Financing Activities | ||
Payment of dividends on common stock | -1,462 | -10,907 |
Issuance of common stock | 291 | 3,060 |
Reduction of long-term debt | 0 | -15,000 |
Net change in credit facility | 200,000 | 86,000 |
Tax benefit on stock compensation | 129 | 686 |
Discontinued operations | 0 | -50,028 |
Net cash provided by financing activities | 198,958 | 13,811 |
Net increase (decrease) in cash and cash equivalents | -322 | 29,788 |
Cash and cash equivalents at beginning of period | 1,852 | 5,555 |
Cash and cash equivalents at end of period | $1,530 | $35,343 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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. Headquartered in Birmingham, Alabama, our operations are conducted through our subsidiary, Energen Resources Corporation (Energen Resources). The unaudited consolidated financial statements and notes should be read in conjunction with the financial statements and notes thereto for the years ended December 31, 2014, 2013 and 2012, included in the 2014 Annual Report of Energen on Form 10-K. | |||||||
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 14, Discontinued Operations and Held For Sale Properties, for further information regarding the sale of Alagasco. | |||||||
Our accompanying unaudited consolidated financial statements include Energen and its subsidiaries, principally Energen Resources, and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the disclosures required for complete financial statements. Results of operations for interim periods are not necessarily indicative of the results that may be expected for the year. In the opinion of management, the accompanying 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-quarter 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: | |||||||
Three months ended | |||||||
March 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Open non-cash mark-to-market losses on derivative instruments | $ | (59,651 | ) | $ | (33,681 | ) | |
Closed gains (losses) on derivative instruments | 93,687 | (19,710 | ) | ||||
Gain (loss) on derivative instruments, net | $ | 34,036 | $ | (53,391 | ) | ||
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 costs, 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: | |||||||
Three months ended March 31, (in thousands) | 2014 | ||||||
Alagasco net income | $ | 43,028 | |||||
Depreciation, depletion and amortization | (152 | ) | |||||
General and administrative | 940 | ||||||
Interest expense | (5,787 | ) | |||||
Other income | (119 | ) | |||||
Income tax expense | 1,935 | ||||||
Alagasco income from discontinued operations | 39,845 | ||||||
Energen loss from discontinued operations | (1,126 | ) | |||||
Income from discontinued operations | $ | 38,719 | |||||
Derivative_Commodity_Instrumen
Derivative Commodity Instruments | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Derivative Commodity Instruments | DERIVATIVE COMMODITY INSTRUMENTS | ||||||||||||||||||
We periodically enter into derivative commodity instruments to hedge our exposure to price fluctuations on oil, natural gas liquids and natural gas production. Such instruments may include over-the-counter (OTC) swaps and basis swaps typically executed with investment and commercial banks and energy-trading firms. Derivative transactions are pursuant to standing authorizations by the Board of Directors, which do not authorize speculative positions. | |||||||||||||||||||
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-Mar-15 | ||||||||||||||||||
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 | $ | 288,062 | $ | (15,387 | ) | $ | 272,675 | $ | — | $ | — | $ | 272,675 | ||||||
Noncurrent derivative instruments | 9 | (9 | ) | — | — | — | — | ||||||||||||
Total derivative assets | 288,071 | (15,396 | ) | 272,675 | — | — | 272,675 | ||||||||||||
Liabilities | |||||||||||||||||||
Derivative instruments | 28,257 | (15,387 | ) | 12,870 | — | — | 12,870 | ||||||||||||
Noncurrent derivative instruments | 982 | (9 | ) | 973 | — | — | 973 | ||||||||||||
Total derivative liabilities | 29,239 | (15,396 | ) | 13,843 | — | — | 13,843 | ||||||||||||
Total derivatives | $ | 258,832 | $ | — | $ | 258,832 | $ | — | $ | — | $ | 258,832 | |||||||
(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 | |||||||
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 ten of our active counterparties and in a net loss position with the remaining two at March 31, 2015. The largest counterparty net gain positions at March 31, 2015, J.P. Morgan Ventures Energy Corporation, Merrill Lynch Commodities, Inc., Canadian Imperial Bank of Commerce, Barclay Bank PLC, Bank of Montreal and Morgan Stanley Capital Group Inc., constituted approximately $52.6 million, $43.5 million, $33.3 million, $28.8 million, $28.7 million and $28.5 million, respectively, of Energen’s total gain on fair value of derivatives. | |||||||||||||||||||
The following tables detail the effect of derivative commodity instruments in cash flow hedging relationships on the financial statements: | |||||||||||||||||||
(in thousands) | Location on Statements of Income | Three months | |||||||||||||||||
ended | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
Net gain recognized in other comprehensive income on derivatives (effective portion), net of tax of $1 | — | $ | 2 | ||||||||||||||||
Gain reclassified from accumulated other comprehensive income into income (effective portion) | Gain (loss) on derivative instruments, net | $ | 4,054 | ||||||||||||||||
The following tables detail the effect of open and closed derivative commodity instruments not designated as hedging instruments on the income statement: | |||||||||||||||||||
(in thousands) | Location on Statements of Income | Three months | Three months | ||||||||||||||||
ended | ended | ||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||
Gain (loss) recognized in income on derivatives | Gain (loss) on derivative instruments, net | $ | 34,036 | $ | (57,446 | ) | |||||||||||||
As of March 31, 2015, Energen had entered into the following transactions for the remainder of 2015 and subsequent years: | |||||||||||||||||||
Production Period | Total Hedged Volumes | Average Contract | Description | ||||||||||||||||
Price | |||||||||||||||||||
Oil | |||||||||||||||||||
2015 | 6,210 | MBbl | $89.30 Bbl | NYMEX Swaps | |||||||||||||||
Oil Basis Differential | |||||||||||||||||||
2015 | 1,620 | MBbl | $(4.30) Bbl | WTS/WTI Basis Swaps | |||||||||||||||
2016 | 720 | MBbl | $(2.00) Bbl | WTS/WTI Basis Swaps | |||||||||||||||
2015 | 5,670 | MBbl | $(4.55) Bbl | WTI/WTI Basis Swaps | |||||||||||||||
2016 | 2,520 | MBbl | $(2.27) Bbl | WTI/WTI Basis Swaps | |||||||||||||||
Natural Gas | |||||||||||||||||||
2015 | 15.3 | Bcf | $4.14 Mcf | Basin Specific Swaps - San Juan | |||||||||||||||
2015 | 4.5 | Bcf | $4.20 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 March 31, 2015, the maximum term over which Energen has hedged exposures to the variability of cash flows is through December 31, 2016. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Fair Value Disclosures [Abstract] | ||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS | |||||||||
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 considerations 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. | |||||||||
No transfers between fair value hierarchy levels occurred during the three months ended March 31, 2015. | ||||||||||
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: | ||||||||||
March 31, 2015 | ||||||||||
(in thousands) | Level 2 | Level 3 | Total | |||||||
Assets: | ||||||||||
Derivative instruments | $ | 256,419 | $ | 16,256 | $ | 272,675 | ||||
Total assets | 256,419 | 16,256 | 272,675 | |||||||
Liabilities: | ||||||||||
Derivative instruments | — | (12,870 | ) | (12,870 | ) | |||||
Noncurrent derivative instruments | — | (973 | ) | (973 | ) | |||||
Total liabilities | — | (13,843 | ) | (13,843 | ) | |||||
Net derivative asset | $ | 256,419 | $ | 2,413 | $ | 258,832 | ||||
31-Dec-14 | ||||||||||
(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 | ||||
Derivative Instruments: 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, Energen maintains communications with its counterparties and discusses 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 London Interbank Offered Rate (LIBOR) yield curves and (iii) the applicable credit-adjusted risk-free rate yield curve. | ||||||||||
At March 31, 2015, Energen had interest rate swap agreements with a notional value of $117 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 swaps was a $0.7 million and a $0.8 million liability at March 31, 2015 and December 31, 2014, 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 and derivative instruments on the balance sheets. | ||||||||||
Level 3 Fair Value Instruments: 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 $4 million change in the fair value of open Level 3 derivative contracts and to the results of operations. | ||||||||||
The tables below set forth a summary of changes in the fair value of Energen’s Level 3 derivative commodity instruments as follows: | ||||||||||
Three months ended | ||||||||||
March 31, | ||||||||||
(in thousands) | 2015 | 2014 | ||||||||
Balance at beginning of period | $ | 24,436 | $ | 18,289 | ||||||
Realized gains (losses) | 13,153 | (3,019 | ) | |||||||
Unrealized losses relating to instruments held at the reporting date* | (22,023 | ) | (16,835 | ) | ||||||
Settlements during period | (13,153 | ) | 2,943 | |||||||
Balance at end of period | $ | 2,413 | $ | 1,378 | ||||||
*Includes $10.3 million and $13.2 million in mark-to-market losses for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||
The table below sets 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 March 31, 2015 | Valuation Technique* | Unobservable Input* | Range | ||||||
Oil Basis - WTS/WTI | ||||||||||
2015 | $ | (6,401 | ) | Discounted Cash Flow | Forward Basis | ($0.33 - $0.39) Bbl | ||||
2016 | $ | (410 | ) | Discounted Cash Flow | Forward Basis | ($1.40) Bbl | ||||
Oil Basis - WTI/WTI | ||||||||||
2015 | $ | (21,257 | ) | Discounted Cash Flow | Forward Basis | ($0.71 - $0.91) Bbl | ||||
2016 | $ | (1,162 | ) | Discounted Cash Flow | Forward Basis | ($1.75 - $1.95) Bbl | ||||
Natural Gas Basis - San Juan | ||||||||||
2015 | $ | 24,223 | Discounted Cash Flow | Forward Basis | ($0.23 - $0.25) Mcf | |||||
Natural Gas Basis - Permian | ||||||||||
2015 | $ | 7,420 | Discounted Cash Flow | Forward Basis | ($0.24) 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 10, 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, 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 12, Asset Impairment, for impairments recognized by Energen during the three months ended March 31, 2015 and 2014. | ||||||||||
Financial Instruments not Carried at Fair Value | ||||||||||
The stated value of cash and cash equivalents, short-term investments, accounts receivable (net of allowance), and short-term debt approximates fair value due to the short maturity of the instruments. Short-term investments purchased and sold during the first quarter of 2015 are not considered readily convertible into cash and accordingly are not classified in cash and cash equivalents. The fair value of Energen’s long-term debt, including the current portion, was approximately $1,211.5 million and $993.7 million and had a carrying value of $1,239.0 million and $1,039.0 million at March 31, 2015 and December 31, 2014, respectively. The fair values are based on market prices of similar debt 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. |
LongTerm_Debt_and_Notes_Payabl
Long-Term Debt and Notes Payable | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
Long-Term Debt and Notes Payable | LONG-TERM DEBT AND NOTES PAYABLE | ||||||
Long-term debt consisted of the following: | |||||||
(in thousands) | March 31, 2015 | December 31, 2014 | |||||
Credit facility | $ | 685,000 | $ | 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 | |||||
1,239,000 | 1,039,000 | ||||||
Less unamortized debt discount | 431 | 437 | |||||
Total Energen | $ | 1,238,569 | $ | 1,038,563 | |||
The aggregate maturities of Energen’s long-term debt outstanding at March 31, 2015 are as follows: | |||||||
(in thousands) | |||||||
Remaining 2015 | 2016 | 2017 | 2018 | 2019 | 2020 and thereafter | ||
$— | $— | $19,000 | $— | $685,000 | $535,000 | ||
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 Facility: On September 2, 2014, Energen entered into a five-year syndicated secured credit facility with domestic and foreign lenders. Originally, the credit facility had an initial borrowing base of $2.1 billion and aggregate commitments of $1.5 billion. On November 17, 2014, the credit facility was amended to provide for $2.0 billion in aggregate commitments. On April 16, 2015, the borrowing base and aggregate commitments were reduced to $1.6 billion in association with the semi-annual redetermination required under the agreement. Energen’s obligations under the $1.6 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 October 1, 2015. | |||||||
Under the 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 March 31, 2015. | |||||||
The following is a summary of information relating to Energen’s credit facilities: | |||||||
(in thousands) | 16-Apr-15 | 31-Dec-14 | |||||
Credit facility outstanding | $ | 685,000 | $ | 485,000 | |||
Available for borrowings* | 915,000 | 1,515,000 | |||||
Total borrowing commitments* | $ | 1,600,000 | $ | 2,000,000 | |||
*Available for borrowings reflect the decrease in borrowing commitments to $1.6 billion effective April 16, 2015. Borrowing commitments available at March 31, 2015 were $2.0 billion. | |||||||
(in thousands) | March 31, 2015 | December 31, 2014 | |||||
Maximum amount outstanding at any month-end | $ | 685,000 | $ | 750,000 | |||
Average daily amount outstanding | $ | 569,589 | $ | 482,166 | |||
Weighted average interest rates based on: | |||||||
Average daily amount outstanding | 1.6 | % | 1.46 | % | |||
Amount outstanding at period-end | 1.68 | % | 1.67 | % | |||
Energen’s interest expense was $11.8 million and $7.9 million for the three months ended March 31, 2015 and 2014, respectively. Energen’s total interest expense for the three months ended March 31, 2015 included capitalized interest expense of $32,000. Energen had no capitalized interest for the three months ended March 31, 2014. At March 31, 2015, Energen paid commitment fees on the unused portion of the available credit facilities at a current annual rate of 30 basis points. See Note 1, Organization and Basis of Presentation, for further information regarding interest on debt required to be extinguished, associated with the sale of Alagasco, which was classified to discontinued operations. |
Reconciliation_of_Earnings_Per
Reconciliation of Earnings Per Share (EPS) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Reconciliation of Earnings Per Share (EPS) | RECONCILIATION OF EARNINGS PER SHARE (EPS) | ||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||
(in thousands, except per share amounts) | March 31, 2015 | March 31, 2014 | |||||||||||||||
Net | Per Share | Net | Per Share | ||||||||||||||
Loss | Shares | Amount | Income | Shares | Amount | ||||||||||||
Basic EPS | $ | (15,420 | ) | 72,830 | $ | (0.21 | ) | $ | 53,316 | 72,629 | $ | 0.73 | |||||
Effect of dilutive securities | |||||||||||||||||
Stock options | — | 296 | |||||||||||||||
Non-vested restricted stock | — | 44 | |||||||||||||||
Performance share awards | — | 76 | |||||||||||||||
Diluted EPS | $ | (15,420 | ) | 72,830 | $ | (0.21 | ) | $ | 53,316 | 73,045 | $ | 0.73 | |||||
In periods of loss, shares that otherwise would have been included in diluted average common shares outstanding are excluded. The Company had 284,150 of excluded shares for the three months ended March 31, 2015. | |||||||||||||||||
Energen had the following shares that were excluded from the computation of diluted EPS, as inclusion would be anti-dilutive: | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
(in thousands) | 2015 | 2014 | |||||||||||||||
Stock options | — | 112 | |||||||||||||||
Performance share awards | — | 68 | |||||||||||||||
Stock_Compensation
Stock Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Share-based Compensation [Abstract] | |
Stock Compensation | STOCK COMPENSATION |
Stock Incentive Plan | |
Stock Options: The Stock Incentive Plan provides for the grant of incentive stock options and non-qualified stock options to officers and key employees. Options granted under the Stock Incentive Plan provide 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 vest within three years from date of grant and expire 10 years from the grant date. | |
Restricted Stock: Additionally, the Stock Incentive Plan provides for the grant of restricted stock and restricted stock units. In February 2015, Energen awarded 99,814 restricted stock units with a grant-date fair value of $65.15. These awards have a three year vesting period and were valued based on the quoted market price of Energen’s common stock at the date of grant. | |
Performance Share Awards: The Stock Incentive Plan also provides for the grant of performance share awards to eligible employees based on predetermined Company performance criteria at the end of an award period. The Stock Incentive Plan provides that payment of earned performance share awards be made in the form of Energen common stock. Performance share awards are valued using the Monte Carlo model which uses historical volatility and other variables to estimate the probability of satisfying the market condition of the award. Energen granted 120,372 performance share awards during the first quarter of 2015 with a three year vesting period and a grant-date fair value of $83.94. | |
Stock Appreciation Rights Plan | |
The Stock Appreciation Rights Plan provides for the payment of cash incentives measured by the long-term appreciation of Energen common stock. These awards are liability awards which settle in cash and are remeasured each reporting period until settlement and have a three year vesting period. | |
Petrotech Incentive Plan | |
The Petrotech Incentive Plan provides for the grant of stock equivalent units. These awards are liability awards which settle in cash and are remeasured each reporting period until settlement. During the first quarter of 2015, Energen awarded 59,288 Petrotech units with a fair value of $65.78 as of March 31, 2015, none of which included a market condition. Energen awarded 64,305 Petrotech units which included a market condition and had a fair value of $91.65 as of March 31, 2015. These awards have a three year vesting period. Also awarded were 1,472 Petrotech units with a sixteen month vesting period and a fair value of $65.92 as of March 31, 2015, and 265 Petrotech units with a twenty-four month vesting period and a fair value of $65.86 as of March 31, 2015, none of which included a market condition. | |
Stock Repurchase Program | |
During the three months ended March 31, 2015 and 2014, respectively, Energen had non-cash purchases of approximately $4.4 million and $0.3 million, respectively, of Energen common stock in conjunction with tax withholdings on our non-qualified deferred compensation plan and other stock compensation. Energen utilized internally generated cash flows in payment of the related tax withholdings. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS | ||||||
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 closed the plan to new entrants, effective November 1, 2014, and froze benefit accruals after 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 Internal Revenue Service and completion of certain administrative actions. | |||||||
Energen’s non-qualified supplemental retirement plans were terminated 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 were made in the first quarter of 2015 with the remainder to be made in the first quarter of 2016. In connection with the termination of these plans, the Company has also reclassified approximately $3.4 million as of March 31, 2015 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 partially fund the estimated payments in the first quarter of 2016. | |||||||
In October 2014, Energen’s Board of Directors amended and restated the Employee Savings Plan 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. | |||||||
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. | |||||||
The components of net periodic benefit cost from continuing operations for Energen’s defined benefit non-contributory pension plan and certain nonqualified supplemental pension plans were as follows: | |||||||
Three months ended | |||||||
March 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Components of net periodic benefit cost: | |||||||
Service cost | $ | — | $ | 1,635 | |||
Interest cost | 204 | 1,413 | |||||
Expected long-term return on assets | — | (1,460 | ) | ||||
Actuarial loss | 184 | 1,412 | |||||
Prior service cost amortization | — | 57 | |||||
Settlement charge | 2,662 | 3,558 | |||||
Net periodic expense | $ | 3,050 | $ | 6,615 | |||
During 2015, Energen anticipates an additional contribution of $13.7 million in order to complete the distribution of plan assets related to the plan terminations. The Company made benefit payments, which were funded by the Rabbi Trust, of approximately$10.9 million during the first quarter of 2015 with respect to the termination of the non-qualified supplemental retirement plans and expects to make additional benefit payments of $0.1 million through the remainder of 2015. In the first quarter of 2015, Energen incurred settlement charges of $0.2 million for the payment of lump sums from the qualified defined benefit pension plans. Also in the first quarter of 2015, Energen incurred a settlement charge of $2.5 million for the payment of lump sums from the non-qualified supplemental retirement plans. 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. | |||||||
The components of net periodic postretirement benefit expense from continuing operations for Energen’s postretirement benefit plan were as follows: | |||||||
Three months ended | |||||||
March 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Components of net periodic benefit cost: | |||||||
Service cost | $ | 98 | $ | 60 | |||
Interest cost | 117 | 226 | |||||
Expected long-term return on assets | (114 | ) | (387 | ) | |||
Actuarial gain | — | (212 | ) | ||||
Transition amortization | — | 15 | |||||
Net periodic (income) expense | $ | 101 | $ | (298 | ) | ||
There are no required contributions to the postretirement benefit plan during 2015. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
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 5.5 million barrels of oil equivalent (MMBOE) through August 2017. | |
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 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. | |
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. | |
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 March 31, 2015. |
Exploratory_Costs
Exploratory Costs | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Extractive Industries [Abstract] | |||||||
Exploratory Costs | EXPLORATORY COSTS | ||||||
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, Energen continues 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) Energen is making sufficient progress assessing the reserves and the economic and operating viability of the project. Capitalized exploratory drilling costs are presented in proved properties in the balance sheets. If the exploratory well is determined to be a dry hole, the costs are charged to exploration expense. Other exploration costs, including geological and geophysical costs, are expensed as incurred. | |||||||
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: | |||||||
Three months ended | |||||||
March 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Capitalized exploratory well costs at beginning of period | $ | 119,439 | $ | 57,600 | |||
Additions pending determination of proved reserves | 230,061 | 164,842 | |||||
Reclassifications due to determination of proved reserves | (234,291 | ) | (112,474 | ) | |||
Capitalized exploratory well costs at end of period | $ | 115,209 | $ | 109,968 | |||
The following table sets forth capitalized exploratory well costs: | |||||||
(in thousands) | March 31, 2015 | December 31, 2014 | |||||
Exploratory wells in progress (drilling rig not released) | $ | 13,063 | $ | 18,781 | |||
Capitalized exploratory well costs capitalized for a period of one year or less | 102,146 | 100,658 | |||||
Total capitalized exploratory well costs | $ | 115,209 | $ | 119,439 | |||
No wells were capitalized for a period greater than one year as of March 31, 2015 or December 31, 2014. At March 31, 2015, Energen had 41 gross exploratory wells either drilling or waiting on results from completion and testing. These wells are located primarily in the Permian Basin. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ||||
Asset Retirement Obligations | 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. 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, 2014 | $ | 94,060 | ||
Liabilities incurred | 455 | |||
Liabilities settled | (262 | ) | ||
Accretion expense | 2,010 | |||
Reclassification associated with held for sale properties* | 1,052 | |||
Balance as of March 31, 2015 | $ | 97,315 | ||
*Adjustment to the reclassification of the asset retirement obligation associated with certain San Juan Basin properties included as liabilities related to assets held for sale at December 31, 2014 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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) | Pension and Postretirement Plans | |||||||
Balance as of December 31, 2014 | $ | (22,870 | ) | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,851 | |||||||
Balance as of March 31, 2015 | $ | (21,019 | ) | |||||
The following table provides details of the reclassifications out of accumulated other comprehensive income (loss). | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | Amounts Reclassified | Line Item Where Presented | ||||||
Gains (losses) on cash flow hedges: | ||||||||
Commodity contracts | $ | — | $ | 4,054 | Gain (loss) on derivative instruments, net | |||
Interest rate swap | — | (446 | ) | Interest expense | ||||
Total cash flow hedges | — | 3,608 | ||||||
Income tax expense | — | (1,384 | ) | |||||
Net of tax | — | 2,224 | ||||||
Pension and postretirement plans: | ||||||||
Transition obligation | — | (10 | ) | General and administrative | ||||
Prior service cost | — | (74 | ) | General and administrative | ||||
Actuarial losses | (2,847 | ) | (8,552 | ) | General and administrative | |||
Total pension and postretirement plans | (2,847 | ) | (8,636 | ) | ||||
Income tax expense | 996 | 3,023 | ||||||
Net of tax | (1,851 | ) | (5,613 | ) | ||||
Total reclassifications for the period | $ | (1,851 | ) | $ | (3,389 | ) |
Asset_Impairment
Asset Impairment | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Asset Impairment | ASSET IMPAIRMENT | ||||||
Impairments recognized by Energen during the three months ended March 31, 2015 and 2014 are presented below: | |||||||
Three months ended | |||||||
March 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Continuing operations: | |||||||
Permian Basin oil properties | $ | 4,330 | $ | — | |||
Permian Basin unproved leasehold properties | 2,005 | 1,247 | |||||
San Juan Basin unproved leasehold properties | 248 | (1 | ) | ||||
Total asset impairments from continuing operations | 6,583 | 1,246 | |||||
Discontinued operations: | |||||||
North Louisiana/East Texas oil and natural gas properties | — | 1,667 | |||||
Total asset impairments from discontinued operations | — | 1,667 | |||||
Total asset impairments | $ | 6,583 | $ | 2,913 | |||
During the first quarter of 2015, Energen recognized a non-cash impairment writedown on certain properties in the Permian Basin of $4.3 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 asset impairment on the consolidated income statement. | |||||||
Energen recognized unproved leasehold writedowns primarily on Permian properties in the Central Basin Platform of $2.3 million pre-tax during the first quarter of 2015. These non-cash writedowns are reflected in asset impairment on the consolidated income statement. | |||||||
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 a non-cash impairment writedown on these properties in the first quarter of 2014 of $1.7 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. This non-cash impairment writedown is reflected in loss on disposal of discontinued operations in the three months ended March 31, 2014. 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. |
Acquisition_and_Disposition_of
Acquisition and Disposition of Properties | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Business Acquisitions and Dispositions [Abstract] | |||||||
Acquisition and Disposition of Properties | ACQUISITION AND DISPOSITION OF PROPERTIES | ||||||
On March 31, 2015, Energen completed the sale of the majority of its natural gas assets in the San Juan Basin in New Mexico and Colorado (effective as of January 1, 2015) to Southland Royalty Company, LLC for an aggregate purchase price of $395 million. The sales proceeds were reduced by purchase price adjustments of approximately $11 million related to the operations of the San Juan Basin properties subsequent to December 31, 2014 and one-time adjustments related primarily to liabilities assumed by the buyer, which resulted in pre-tax proceeds to Energen of approximately $384 million before consideration of transaction costs of approximately $2.8 million. Energen recognized a pre-tax gain of $28.1 million on the sale. The purchase price is subject to further purchase price adjustments following closing. Energen used proceeds from the sale to reduce long-term indebtedness. At December 31, 2014, proved reserves associated with these San Juan Basin properties totaled 69,038 MBOE. | |||||||
Summarized below are the consolidated results of operations for the three months ended March 31, 2015 and 2014, on an unaudited pro forma basis which gives effect to the sale as if it had occurred at the beginning of each period presented. The pro forma financial information does not purport to be indicative of results of operations that would have occurred had the transaction occurred on the basis assumed above nor are they indicative of results of the future operations of the enterprises. | |||||||
Three months ended | |||||||
March 31, | |||||||
(in thousands, except per share data) | 2015 | 2014 | |||||
Total revenues | $ | 198,213 | $ | 243,090 | |||
Income (loss) from continuing operations | $ | (33,495 | ) | $ | 1,849 | ||
Net income (loss) | $ | (33,495 | ) | $ | 39,518 | ||
Diluted earnings per average common share from continuing operations | $ | (0.46 | ) | $ | 0.03 | ||
Diluted earnings per average common share | $ | (0.46 | ) | $ | 0.54 | ||
Basic earnings per average common share from continuing operations | $ | (0.46 | ) | $ | 0.03 | ||
Basic earnings per average common share | $ | (0.46 | ) | $ | 0.54 | ||
Energen completed an estimated total of $30.7 million in various purchases of unproved leasehold during the three months ended March 31, 2015. 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. |
Discontinued_Operations_and_He
Discontinued Operations and Held for Sale Properties | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||
Discontinued Operations and Held for Sale Properties | 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 with prior period comparable and reflected the associated operating results in discontinued operations. Energen’s results of operations and cash flows for the three months ended March 31, 2014 and our financial position as of December 31, 2014 presented in our unaudited 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 a non-cash impairment writedown on these properties in the first quarter of 2014 of $1.7 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. This non-cash impairment writedown is reflected in loss on disposal of discontinued operations in the three months ended March 31, 2014. 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. | |||||||
As discussed in Note 13, Acquisition and Disposition of Properties, the following table details 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 were held for sale as of December 31, 2014, did not qualify for discontinued operations as we have ongoing operations in the San Juan Basin. | |||||||
We recognized interest on debt required to be extinguished in connection with the sale of Alagasco as discontinued operations. See Note 1, Organization and Basis of Presentation, for further information regarding adjustments associated with the sale of Alagasco. | |||||||
(in thousands, except per share data) | Three months | ||||||
ended | |||||||
31-Mar-14 | |||||||
Natural gas distribution revenues | $ | 263,900 | |||||
Oil and natural gas revenues | 4,812 | ||||||
Total revenues | $ | 268,712 | |||||
Pretax income from discontinued operations | $ | 62,316 | |||||
Income tax expense | 23,597 | ||||||
Income From Discontinued Operations | $ | 38,719 | |||||
Loss on disposal of discontinued operations | $ | (1,667 | ) | ||||
Income tax benefit | (617 | ) | |||||
Loss on Disposal of Discontinued Operations | $ | (1,050 | ) | ||||
Total Income From Discontinued Operations | $ | 37,669 | |||||
Diluted Earnings Per Average Common Share | |||||||
Income from discontinued operations | $ | 0.53 | |||||
Loss on disposal of discontinued operations | (0.01 | ) | |||||
Total Income From Discontinued Operations | $ | 0.52 | |||||
Basic Earnings Per Average Common Share | |||||||
Income from discontinued operations | $ | 0.53 | |||||
Loss on disposal of discontinued operations | (0.01 | ) | |||||
Total Income From Discontinued Operations | $ | 0.52 | |||||
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | RECENTLY ISSUED ACCOUNTING STANDARDS |
In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendment is effective for fiscal years beginning on or after December 15, 2015, and interim periods within those fiscal years. Energen does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. | |
In April 2014, the Financial Accounting Standards Board issued 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 was effective for annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. The adoption of this ASU did not have a material impact on the consolidated financial statements of Energen. |
Recently_Issued_Accounting_Sta1
Recently Issued Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements, Policy | In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendment is effective for fiscal years beginning on or after December 15, 2015, and interim periods within those fiscal years. Energen does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. |
In April 2014, the Financial Accounting Standards Board issued 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 was effective for annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. The adoption of this ASU did not have a material impact on the consolidated financial statements of Energen. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Organization, Consolidation and Presentation of Financial Statements [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: | ||||||
Three months ended | |||||||
March 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Open non-cash mark-to-market losses on derivative instruments | $ | (59,651 | ) | $ | (33,681 | ) | |
Closed gains (losses) on derivative instruments | 93,687 | (19,710 | ) | ||||
Gain (loss) on derivative instruments, net | $ | 34,036 | $ | (53,391 | ) | ||
Schedule of Discontinued Operations | The table below provides a detail of these items included in income (loss) from discontinued operations as follows: | ||||||
Three months ended March 31, (in thousands) | 2014 | ||||||
Alagasco net income | $ | 43,028 | |||||
Depreciation, depletion and amortization | (152 | ) | |||||
General and administrative | 940 | ||||||
Interest expense | (5,787 | ) | |||||
Other income | (119 | ) | |||||
Income tax expense | 1,935 | ||||||
Alagasco income from discontinued operations | 39,845 | ||||||
Energen loss from discontinued operations | (1,126 | ) | |||||
Income from discontinued operations | $ | 38,719 | |||||
(in thousands, except per share data) | Three months | ||||||
ended | |||||||
31-Mar-14 | |||||||
Natural gas distribution revenues | $ | 263,900 | |||||
Oil and natural gas revenues | 4,812 | ||||||
Total revenues | $ | 268,712 | |||||
Pretax income from discontinued operations | $ | 62,316 | |||||
Income tax expense | 23,597 | ||||||
Income From Discontinued Operations | $ | 38,719 | |||||
Loss on disposal of discontinued operations | $ | (1,667 | ) | ||||
Income tax benefit | (617 | ) | |||||
Loss on Disposal of Discontinued Operations | $ | (1,050 | ) | ||||
Total Income From Discontinued Operations | $ | 37,669 | |||||
Diluted Earnings Per Average Common Share | |||||||
Income from discontinued operations | $ | 0.53 | |||||
Loss on disposal of discontinued operations | (0.01 | ) | |||||
Total Income From Discontinued Operations | $ | 0.52 | |||||
Basic Earnings Per Average Common Share | |||||||
Income from discontinued operations | $ | 0.53 | |||||
Loss on disposal of discontinued operations | (0.01 | ) | |||||
Total Income From Discontinued Operations | $ | 0.52 | |||||
As discussed in Note 13, Acquisition and Disposition of Properties, the following table details 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 were held for sale as of December 31, 2014, did not qualify for discontinued operations as we have ongoing operations in the San Juan Basin. |
Derivative_Commodity_Instrumen1
Derivative Commodity Instruments (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
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-Mar-15 | ||||||||||||||||||
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 | $ | 288,062 | $ | (15,387 | ) | $ | 272,675 | $ | — | $ | — | $ | 272,675 | ||||||
Noncurrent derivative instruments | 9 | (9 | ) | — | — | — | — | ||||||||||||
Total derivative assets | 288,071 | (15,396 | ) | 272,675 | — | — | 272,675 | ||||||||||||
Liabilities | |||||||||||||||||||
Derivative instruments | 28,257 | (15,387 | ) | 12,870 | — | — | 12,870 | ||||||||||||
Noncurrent derivative instruments | 982 | (9 | ) | 973 | — | — | 973 | ||||||||||||
Total derivative liabilities | 29,239 | (15,396 | ) | 13,843 | — | — | 13,843 | ||||||||||||
Total derivatives | $ | 258,832 | $ | — | $ | 258,832 | $ | — | $ | — | $ | 258,832 | |||||||
(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 | |||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following tables detail the effect of derivative commodity instruments in cash flow hedging relationships on the financial statements: | ||||||||||||||||||
(in thousands) | Location on Statements of Income | Three months | |||||||||||||||||
ended | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
Net gain recognized in other comprehensive income on derivatives (effective portion), net of tax of $1 | — | $ | 2 | ||||||||||||||||
Gain reclassified from accumulated other comprehensive income into income (effective portion) | Gain (loss) on derivative instruments, net | $ | 4,054 | ||||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following tables detail the effect of open and closed derivative commodity instruments not designated as hedging instruments on the income statement: | ||||||||||||||||||
(in thousands) | Location on Statements of Income | Three months | Three months | ||||||||||||||||
ended | ended | ||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||
Gain (loss) recognized in income on derivatives | Gain (loss) on derivative instruments, net | $ | 34,036 | $ | (57,446 | ) | |||||||||||||
Schedule of Hedging Transactions | As of March 31, 2015, Energen had entered into the following transactions for the remainder of 2015 and subsequent years: | ||||||||||||||||||
Production Period | Total Hedged Volumes | Average Contract | Description | ||||||||||||||||
Price | |||||||||||||||||||
Oil | |||||||||||||||||||
2015 | 6,210 | MBbl | $89.30 Bbl | NYMEX Swaps | |||||||||||||||
Oil Basis Differential | |||||||||||||||||||
2015 | 1,620 | MBbl | $(4.30) Bbl | WTS/WTI Basis Swaps | |||||||||||||||
2016 | 720 | MBbl | $(2.00) Bbl | WTS/WTI Basis Swaps | |||||||||||||||
2015 | 5,670 | MBbl | $(4.55) Bbl | WTI/WTI Basis Swaps | |||||||||||||||
2016 | 2,520 | MBbl | $(2.27) Bbl | WTI/WTI Basis Swaps | |||||||||||||||
Natural Gas | |||||||||||||||||||
2015 | 15.3 | Bcf | $4.14 Mcf | Basin Specific Swaps - San Juan | |||||||||||||||
2015 | 4.5 | Bcf | $4.20 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) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Fair Value Disclosures [Abstract] | ||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following fair value hierarchy tables present information about Energen’s assets and liabilities measured at fair value on a recurring basis: | |||||||||
March 31, 2015 | ||||||||||
(in thousands) | Level 2 | Level 3 | Total | |||||||
Assets: | ||||||||||
Derivative instruments | $ | 256,419 | $ | 16,256 | $ | 272,675 | ||||
Total assets | 256,419 | 16,256 | 272,675 | |||||||
Liabilities: | ||||||||||
Derivative instruments | — | (12,870 | ) | (12,870 | ) | |||||
Noncurrent derivative instruments | — | (973 | ) | (973 | ) | |||||
Total liabilities | — | (13,843 | ) | (13,843 | ) | |||||
Net derivative asset | $ | 256,419 | $ | 2,413 | $ | 258,832 | ||||
31-Dec-14 | ||||||||||
(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 | ||||
Schedule of Changes in Fair Value of Derivative Instruments Classified as Level 3 | The tables below set forth a summary of changes in the fair value of Energen’s Level 3 derivative commodity instruments as follows: | |||||||||
Three months ended | ||||||||||
March 31, | ||||||||||
(in thousands) | 2015 | 2014 | ||||||||
Balance at beginning of period | $ | 24,436 | $ | 18,289 | ||||||
Realized gains (losses) | 13,153 | (3,019 | ) | |||||||
Unrealized losses relating to instruments held at the reporting date* | (22,023 | ) | (16,835 | ) | ||||||
Settlements during period | (13,153 | ) | 2,943 | |||||||
Balance at end of period | $ | 2,413 | $ | 1,378 | ||||||
*Includes $10.3 million and $13.2 million in mark-to-market losses for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||
Schedule of Fair Value Inputs, Derivatives, Quantitative Information | The table below sets 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 March 31, 2015 | Valuation Technique* | Unobservable Input* | Range | ||||||
Oil Basis - WTS/WTI | ||||||||||
2015 | $ | (6,401 | ) | Discounted Cash Flow | Forward Basis | ($0.33 - $0.39) Bbl | ||||
2016 | $ | (410 | ) | Discounted Cash Flow | Forward Basis | ($1.40) Bbl | ||||
Oil Basis - WTI/WTI | ||||||||||
2015 | $ | (21,257 | ) | Discounted Cash Flow | Forward Basis | ($0.71 - $0.91) Bbl | ||||
2016 | $ | (1,162 | ) | Discounted Cash Flow | Forward Basis | ($1.75 - $1.95) Bbl | ||||
Natural Gas Basis - San Juan | ||||||||||
2015 | $ | 24,223 | Discounted Cash Flow | Forward Basis | ($0.23 - $0.25) Mcf | |||||
Natural Gas Basis - Permian | ||||||||||
2015 | $ | 7,420 | Discounted Cash Flow | Forward Basis | ($0.24) 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. |
LongTerm_Debt_and_Notes_Payabl1
Long-Term Debt and Notes Payable (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
Long-term debt | Long-term debt consisted of the following: | ||||||
(in thousands) | March 31, 2015 | December 31, 2014 | |||||
Credit facility | $ | 685,000 | $ | 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 | |||||
1,239,000 | 1,039,000 | ||||||
Less unamortized debt discount | 431 | 437 | |||||
Total Energen | $ | 1,238,569 | $ | 1,038,563 | |||
Maturities of Long-term Debt | The aggregate maturities of Energen’s long-term debt outstanding at March 31, 2015 are as follows: | ||||||
(in thousands) | |||||||
Remaining 2015 | 2016 | 2017 | 2018 | 2019 | 2020 and thereafter | ||
$— | $— | $19,000 | $— | $685,000 | $535,000 | ||
Summary of Credit Facilities | The following is a summary of information relating to Energen’s credit facilities: | ||||||
(in thousands) | 16-Apr-15 | 31-Dec-14 | |||||
Credit facility outstanding | $ | 685,000 | $ | 485,000 | |||
Available for borrowings* | 915,000 | 1,515,000 | |||||
Total borrowing commitments* | $ | 1,600,000 | $ | 2,000,000 | |||
*Available for borrowings reflect the decrease in borrowing commitments to $1.6 billion effective April 16, 2015. Borrowing commitments available at March 31, 2015 were $2.0 billion. | |||||||
(in thousands) | March 31, 2015 | December 31, 2014 | |||||
Maximum amount outstanding at any month-end | $ | 685,000 | $ | 750,000 | |||
Average daily amount outstanding | $ | 569,589 | $ | 482,166 | |||
Weighted average interest rates based on: | |||||||
Average daily amount outstanding | 1.6 | % | 1.46 | % | |||
Amount outstanding at period-end | 1.68 | % | 1.67 | % |
Reconciliation_of_Earnings_Per1
Reconciliation of Earnings Per Share (EPS) (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Schedule of Earnings Per Share Reconciliation | |||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||
(in thousands, except per share amounts) | March 31, 2015 | March 31, 2014 | |||||||||||||||
Net | Per Share | Net | Per Share | ||||||||||||||
Loss | Shares | Amount | Income | Shares | Amount | ||||||||||||
Basic EPS | $ | (15,420 | ) | 72,830 | $ | (0.21 | ) | $ | 53,316 | 72,629 | $ | 0.73 | |||||
Effect of dilutive securities | |||||||||||||||||
Stock options | — | 296 | |||||||||||||||
Non-vested restricted stock | — | 44 | |||||||||||||||
Performance share awards | — | 76 | |||||||||||||||
Diluted EPS | $ | (15,420 | ) | 72,830 | $ | (0.21 | ) | $ | 53,316 | 73,045 | $ | 0.73 | |||||
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: | ||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
(in thousands) | 2015 | 2014 | |||||||||||||||
Stock options | — | 112 | |||||||||||||||
Performance share awards | — | 68 | |||||||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Pension Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Schedule of Net Benefit Costs | The components of net periodic benefit cost from continuing operations for Energen’s defined benefit non-contributory pension plan and certain nonqualified supplemental pension plans were as follows: | ||||||
Three months ended | |||||||
March 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Components of net periodic benefit cost: | |||||||
Service cost | $ | — | $ | 1,635 | |||
Interest cost | 204 | 1,413 | |||||
Expected long-term return on assets | — | (1,460 | ) | ||||
Actuarial loss | 184 | 1,412 | |||||
Prior service cost amortization | — | 57 | |||||
Settlement charge | 2,662 | 3,558 | |||||
Net periodic expense | $ | 3,050 | $ | 6,615 | |||
Postretirement Benefit Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Schedule of Net Benefit Costs | The components of net periodic postretirement benefit expense from continuing operations for Energen’s postretirement benefit plan were as follows: | ||||||
Three months ended | |||||||
March 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Components of net periodic benefit cost: | |||||||
Service cost | $ | 98 | $ | 60 | |||
Interest cost | 117 | 226 | |||||
Expected long-term return on assets | (114 | ) | (387 | ) | |||
Actuarial gain | — | (212 | ) | ||||
Transition amortization | — | 15 | |||||
Net periodic (income) expense | $ | 101 | $ | (298 | ) | ||
Exploratory_Costs_Tables
Exploratory Costs (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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: | ||||||
Three months ended | |||||||
March 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Capitalized exploratory well costs at beginning of period | $ | 119,439 | $ | 57,600 | |||
Additions pending determination of proved reserves | 230,061 | 164,842 | |||||
Reclassifications due to determination of proved reserves | (234,291 | ) | (112,474 | ) | |||
Capitalized exploratory well costs at end of period | $ | 115,209 | $ | 109,968 | |||
The following table sets forth capitalized exploratory well costs: | |||||||
(in thousands) | March 31, 2015 | December 31, 2014 | |||||
Exploratory wells in progress (drilling rig not released) | $ | 13,063 | $ | 18,781 | |||
Capitalized exploratory well costs capitalized for a period of one year or less | 102,146 | 100,658 | |||||
Total capitalized exploratory well costs | $ | 115,209 | $ | 119,439 | |||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
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, 2014 | $ | 94,060 | ||
Liabilities incurred | 455 | |||
Liabilities settled | (262 | ) | ||
Accretion expense | 2,010 | |||
Reclassification associated with held for sale properties* | 1,052 | |||
Balance as of March 31, 2015 | $ | 97,315 | ||
*Adjustment to the reclassification of the asset retirement obligation associated with certain San Juan Basin properties included as liabilities related to assets held for sale at December 31, 2014 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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) | Pension and Postretirement Plans | |||||||
Balance as of December 31, 2014 | $ | (22,870 | ) | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,851 | |||||||
Balance as of March 31, 2015 | $ | (21,019 | ) | |||||
Reclassification out of Accumulated Other Comprehensive Income | The following table provides details of the reclassifications out of accumulated other comprehensive income (loss). | |||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | Amounts Reclassified | Line Item Where Presented | ||||||
Gains (losses) on cash flow hedges: | ||||||||
Commodity contracts | $ | — | $ | 4,054 | Gain (loss) on derivative instruments, net | |||
Interest rate swap | — | (446 | ) | Interest expense | ||||
Total cash flow hedges | — | 3,608 | ||||||
Income tax expense | — | (1,384 | ) | |||||
Net of tax | — | 2,224 | ||||||
Pension and postretirement plans: | ||||||||
Transition obligation | — | (10 | ) | General and administrative | ||||
Prior service cost | — | (74 | ) | General and administrative | ||||
Actuarial losses | (2,847 | ) | (8,552 | ) | General and administrative | |||
Total pension and postretirement plans | (2,847 | ) | (8,636 | ) | ||||
Income tax expense | 996 | 3,023 | ||||||
Net of tax | (1,851 | ) | (5,613 | ) | ||||
Total reclassifications for the period | $ | (1,851 | ) | $ | (3,389 | ) |
Asset_Impairment_Tables
Asset Impairment (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Details of Impairment of Long-Lived Assets Held and Used by Asset | Impairments recognized by Energen during the three months ended March 31, 2015 and 2014 are presented below: | ||||||
Three months ended | |||||||
March 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Continuing operations: | |||||||
Permian Basin oil properties | $ | 4,330 | $ | — | |||
Permian Basin unproved leasehold properties | 2,005 | 1,247 | |||||
San Juan Basin unproved leasehold properties | 248 | (1 | ) | ||||
Total asset impairments from continuing operations | 6,583 | 1,246 | |||||
Discontinued operations: | |||||||
North Louisiana/East Texas oil and natural gas properties | — | 1,667 | |||||
Total asset impairments from discontinued operations | — | 1,667 | |||||
Total asset impairments | $ | 6,583 | $ | 2,913 | |||
Acquisition_and_Disposition_of1
Acquisition and Disposition of Properties (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Business Acquisitions and Dispositions [Abstract] | |||||||
Pro Forma Business Combinations or Disposals | |||||||
Three months ended | |||||||
March 31, | |||||||
(in thousands, except per share data) | 2015 | 2014 | |||||
Total revenues | $ | 198,213 | $ | 243,090 | |||
Income (loss) from continuing operations | $ | (33,495 | ) | $ | 1,849 | ||
Net income (loss) | $ | (33,495 | ) | $ | 39,518 | ||
Diluted earnings per average common share from continuing operations | $ | (0.46 | ) | $ | 0.03 | ||
Diluted earnings per average common share | $ | (0.46 | ) | $ | 0.54 | ||
Basic earnings per average common share from continuing operations | $ | (0.46 | ) | $ | 0.03 | ||
Basic earnings per average common share | $ | (0.46 | ) | $ | 0.54 | ||
Discontinued_Operations_and_He1
Discontinued Operations and Held for Sale Properties (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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: | ||||||
Three months ended March 31, (in thousands) | 2014 | ||||||
Alagasco net income | $ | 43,028 | |||||
Depreciation, depletion and amortization | (152 | ) | |||||
General and administrative | 940 | ||||||
Interest expense | (5,787 | ) | |||||
Other income | (119 | ) | |||||
Income tax expense | 1,935 | ||||||
Alagasco income from discontinued operations | 39,845 | ||||||
Energen loss from discontinued operations | (1,126 | ) | |||||
Income from discontinued operations | $ | 38,719 | |||||
(in thousands, except per share data) | Three months | ||||||
ended | |||||||
31-Mar-14 | |||||||
Natural gas distribution revenues | $ | 263,900 | |||||
Oil and natural gas revenues | 4,812 | ||||||
Total revenues | $ | 268,712 | |||||
Pretax income from discontinued operations | $ | 62,316 | |||||
Income tax expense | 23,597 | ||||||
Income From Discontinued Operations | $ | 38,719 | |||||
Loss on disposal of discontinued operations | $ | (1,667 | ) | ||||
Income tax benefit | (617 | ) | |||||
Loss on Disposal of Discontinued Operations | $ | (1,050 | ) | ||||
Total Income From Discontinued Operations | $ | 37,669 | |||||
Diluted Earnings Per Average Common Share | |||||||
Income from discontinued operations | $ | 0.53 | |||||
Loss on disposal of discontinued operations | (0.01 | ) | |||||
Total Income From Discontinued Operations | $ | 0.52 | |||||
Basic Earnings Per Average Common Share | |||||||
Income from discontinued operations | $ | 0.53 | |||||
Loss on disposal of discontinued operations | (0.01 | ) | |||||
Total Income From Discontinued Operations | $ | 0.52 | |||||
As discussed in Note 13, Acquisition and Disposition of Properties, the following table details 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 were held for sale as of December 31, 2014, did not qualify for discontinued operations as we have ongoing operations in the San Juan Basin. |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation - Additional Information (Details) (USD $) | 3 Months Ended | 0 Months Ended |
Mar. 31, 2014 | Sep. 02, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss on disposal of discontinued operations | ($1,667,000) | |
Alabama Gas Corporation | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Amount of consideration received | 1,600,000,000 | |
Amount of debt assumed | 267,000,000 | |
Proceeds from sale | 1,320,000,000 | |
Loss on disposal of discontinued operations | $726,500,000 |
Organization_and_Basis_of_Pres3
Organization and Basis of Presentation - Derivative Gains and Losses (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments, net | $34,036 | ($53,391) |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Open non-cash mark-to-market losses on derivative instruments | -59,651 | -33,681 |
Closed gains (losses) on derivative instruments | 93,687 | -19,710 |
Gain (loss) on derivative instruments, net | $34,036 | ($53,391) |
Organization_and_Basis_of_Pres4
Organization and Basis of Presentation - Discontinued Operations (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income From Discontinued Operations | $0 | $37,669 |
Income From Discontinued Operations | 38,719 | |
Alabama Gas Corporation | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Alagasco net income | 43,028 | |
Depreciation, depletion and amortization | -152 | |
General and administrative | 940 | |
Interest expense | -5,787 | |
Other income | -119 | |
Income tax expense | 1,935 | |
Income From Discontinued Operations | 39,845 | |
Parent Company | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income From Discontinued Operations | ($1,126) |
Derivative_Commodity_Instrumen2
Derivative Commodity Instruments - Additional Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
counterparty | ||
Derivative [Line Items] | ||
Number of Active Counterparties with Whom Company Holds Net Gain Positions | 10 | |
Number of Active Counterparties with Whom Company Holds Net Loss Positions | 2 | |
Gain (Loss) on fair value of derivatives | $34,036 | ($53,391) |
Commodity contracts | ||
Derivative [Line Items] | ||
Gain (Loss) on fair value of derivatives | 34,036 | -53,391 |
Commodity contracts | J.P Morgan Ventures Energy Corporation | ||
Derivative [Line Items] | ||
Gain (Loss) on fair value of derivatives | 52,600 | |
Commodity contracts | Merrill Lynch Commodities, Inc. | ||
Derivative [Line Items] | ||
Gain (Loss) on fair value of derivatives | 43,500 | |
Commodity contracts | Canadian Imperial Bank of Commerce | ||
Derivative [Line Items] | ||
Gain (Loss) on fair value of derivatives | 33,300 | |
Commodity contracts | Barclay Bank PLC | ||
Derivative [Line Items] | ||
Gain (Loss) on fair value of derivatives | 28,800 | |
Commodity contracts | Bank of Montreal | ||
Derivative [Line Items] | ||
Gain (Loss) on fair value of derivatives | 28,700 | |
Commodity contracts | Morgan Stanley Capital Group Inc | ||
Derivative [Line Items] | ||
Gain (Loss) on fair value of derivatives | $28,500 |
Derivative_Commodity_Instrumen3
Derivative Commodity Instruments - Offsetting Assets and Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivative assets | ||
Gross Amounts Recognized at Fair Value | $288,071 | $339,977 |
Gross Amounts Offset in the Balance Sheets | -15,396 | -17,640 |
Total assets | 272,675 | 322,337 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Fair Value Presented in the Balance Sheets | 272,675 | 322,337 |
Derivative assets | ||
Gross Amounts Recognized at Fair Value | 29,239 | 18,628 |
Gross Amounts Offset in the Balance Sheets | -15,396 | -17,640 |
Net Amount Presented in the Balance Sheets | 13,843 | 988 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Fair Value Presented in the Balance Sheets | 13,843 | 988 |
Total Derivatives | 258,832 | 321,349 |
Current Assets | ||
Derivative assets | ||
Gross Amounts Recognized at Fair Value | 288,062 | 339,977 |
Gross Amounts Offset in the Balance Sheets | -15,387 | -17,640 |
Total assets | 272,675 | 322,337 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Fair Value Presented in the Balance Sheets | 272,675 | 322,337 |
Noncurrent Assets | ||
Derivative assets | ||
Gross Amounts Recognized at Fair Value | 9 | 0 |
Gross Amounts Offset in the Balance Sheets | -9 | 0 |
Total assets | 0 | 0 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Fair Value Presented in the Balance Sheets | 0 | 0 |
Current Liabilities | ||
Derivative assets | ||
Gross Amounts Recognized at Fair Value | 28,257 | 18,628 |
Gross Amounts Offset in the Balance Sheets | -15,387 | -17,640 |
Net Amount Presented in the Balance Sheets | 12,870 | 988 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Fair Value Presented in the Balance Sheets | 12,870 | 988 |
Noncurrent Liabilities | ||
Derivative assets | ||
Gross Amounts Recognized at Fair Value | 982 | 0 |
Gross Amounts Offset in the Balance Sheets | -9 | 0 |
Net Amount Presented in the Balance Sheets | 973 | 0 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Fair Value Presented in the Balance Sheets | $973 | $0 |
Derivatives_Commodity_Instrume
Derivatives Commodity Instruments - Cash Flow Hedging Relationship in Financial Statements (Details) (Commodity contracts, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net gain (loss) recognized in other comprehensive income on derivatives (effective portion), net of tax | $2 | |
Gain (Loss) Recognized in other comprehensive income on derivatives | 0 | 1 |
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) | $4,054 |
Derivative_Commodity_Instrumen4
Derivative Commodity Instruments - Not Designated as Hedging Instruments on the Income Statement (Details) (Gain (loss) on derivative instruments, net, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Gain (loss) on derivative instruments, net | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Open and closed non-cash mark-to-market losses on derivative instruments | $34,036 | ($57,446) |
Derivative_Commodity_Reclassif
Derivative Commodity - Reclassification (Details) | 3 Months Ended |
Mar. 31, 2015 | |
bbl | |
Production Period, Year One | NYMEX Swaps | Crude Oil | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes | 6,210,000 |
Average contract price | 89.3 |
Production Period, Year One | WTS/WTI Basis Swaps | Crude Oil | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes | 1,620,000 |
Average contract price | -4.3 |
Production Period, Year One | WTI/WTI Basis Swaps | Crude Oil | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes | 5,670,000 |
Average contract price | -4.55 |
Production Period, Year One | Basin Specific Swaps, San Juan | Natural Gas | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes | 15,300,000 |
Average contract price ($ per Mcf) | 4.14 |
Production Period, Year One | Basin Specific Swaps - Permain | Natural Gas | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes | 4,500,000 |
Average contract price ($ per Mcf) | 4.2 |
Production Period, Year Two | WTS/WTI Basis Swaps | Crude Oil | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes | 720,000 |
Average contract price | -2 |
Production Period, Year Two | WTI/WTI Basis Swaps | Crude Oil | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes | 2,520,000 |
Average contract price | -2.27 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $272,675 | $322,337 |
Total liabilities | -13,843 | -988 |
Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instruments | 272,675 | 322,337 |
Total assets | 272,675 | 322,337 |
Derivative instruments | -12,870 | -988 |
Noncurrent derivative instruments | -973 | |
Total liabilities | -13,843 | -988 |
Net derivative asset | 258,832 | 321,349 |
Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instruments | 256,419 | 294,865 |
Total assets | 256,419 | 294,865 |
Derivative instruments | 0 | 2,048 |
Noncurrent derivative instruments | 0 | |
Total liabilities | 0 | 2,048 |
Net derivative asset | 256,419 | 296,913 |
Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instruments | 16,256 | 27,472 |
Total assets | 16,256 | 27,472 |
Derivative instruments | -12,870 | -3,036 |
Noncurrent derivative instruments | -973 | |
Total liabilities | -13,843 | -3,036 |
Net derivative asset | $2,413 | $24,436 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Changes of Derivative Commodity Instruments in Fair Value (Details) (Derivative Commodity Instruments, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Derivative Commodity Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $24,436,000 | $18,289,000 |
Realized gains (losses) | 13,153,000 | -3,019,000 |
Unrealized losses relating to instruments held at the reporting date | -22,023,000 | -16,835,000 |
Settlements during period | -13,153,000 | 2,943,000 |
Balance at end of period | 2,413,000 | 1,378,000 |
Mark-to-market loss included in earnings, unrealized | $10,300,000 | $13,200,000 |
Fair_Value_Measurements_Level_
Fair Value Measurements - Level 3 Measurements of Derivative Commodity Instruments (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Derivative assets | $272,675,000 | $322,337,000 | |
Derivative liabilities | -13,843,000 | -988,000 | |
Level 3 | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Sensitivity Analysis of Fair Value of 10 Percent Change in Commodity Prices | 4,000,000 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTS/WTI | 2015 | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Derivative liabilities | -6,401,000 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTS/WTI | 2015 | Minimum | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Fair Value Inputs, Price Per Barrel | 0.33 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTS/WTI | 2015 | Maximum | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Fair Value Inputs, Price Per Barrel | 0.39 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTS/WTI | 2016 | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Derivative liabilities | -410,000 | ||
Fair Value Inputs, Price Per Barrel | 1.4 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTI/WTI | 2015 | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Derivative liabilities | -21,257,000 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTI/WTI | 2015 | Minimum | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Fair Value Inputs, Price Per Barrel | 0.71 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTI/WTI | 2015 | Maximum | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Fair Value Inputs, Price Per Barrel | 0.91 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTI/WTI | 2016 | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Derivative liabilities | -1,162,000 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTI/WTI | 2016 | Minimum | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Fair Value Inputs, Price Per Barrel | 1.75 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTI/WTI | 2016 | Maximum | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Fair Value Inputs, Price Per Barrel | 1.95 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Natural Gas Basis - San Juan | 2015 | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Derivative assets | 24,223,000 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Natural Gas Basis - San Juan | 2015 | Minimum | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Fair Value Inputs, Price Per Cubic Foot | 0.23 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Natural Gas Basis - San Juan | 2015 | Maximum | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Fair Value Inputs, Price Per Cubic Foot | 0.25 | ||
Discounted Cash Flow Valuation Technique | Level 3 | Natural Gas Basis - Permian | 2015 | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Derivative assets | 7,420,000 | ||
Fair Value Inputs, Price Per Cubic Foot | 0.24 | ||
Commodity contracts | |||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | |||
Gain (Loss) Recognized in other comprehensive income on derivatives | $0 | $1,000 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt fair value | $1,211,500,000 | $993,700,000 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt fair value | 1,239,000,000 | 1,039,000,000 |
Credit facility | Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Face amount | 116,667,000 | |
Interest rate | 1.04% | |
Credit facility | Swap | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value interest rate swap | $700,000 | $800,000 |
LongTerm_Debt_and_Notes_Payabl2
Long-Term Debt and Notes Payable - Long-Term Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Gross amount | $1,239,000 | $1,039,000 |
Less unamortized debt discount | 431 | 437 |
Long-term debt | 1,238,569 | 1,038,563 |
Credit facility | ||
Debt Instrument [Line Items] | ||
Gross amount | 685,000 | 485,000 |
Medium-term Notes | 7.40% Medium-term Notes, Series A, due July 24, 2017 | ||
Debt Instrument [Line Items] | ||
Gross amount | 2,000 | 2,000 |
Interest Rate | 7.40% | 7.40% |
Medium-term Notes | 7.36% Medium-term Notes, Series A, due July 24, 2017 | ||
Debt Instrument [Line Items] | ||
Gross amount | 15,000 | 15,000 |
Interest Rate | 7.36% | 7.36% |
Medium-term Notes | 7.23% Medium-term Notes, Series A, due July 28, 2017 | ||
Debt Instrument [Line Items] | ||
Gross amount | 2,000 | 2,000 |
Interest Rate | 7.23% | 7.23% |
Medium-term Notes | 7.32% Medium-term Notes, Series A, due July 28, 2022 | ||
Debt Instrument [Line Items] | ||
Gross amount | 20,000 | 20,000 |
Interest Rate | 7.32% | 7.32% |
Medium-term Notes | 7.60% Medium-term Notes, Series A, due July 26, 2027 | ||
Debt Instrument [Line Items] | ||
Gross amount | 5,000 | 5,000 |
Interest Rate | 7.60% | 7.60% |
Medium-term Notes | 7.35% Medium-term Notes, Series A, due July 28, 2027 | ||
Debt Instrument [Line Items] | ||
Gross amount | 10,000 | 10,000 |
Interest Rate | 7.35% | 7.35% |
Medium-term Notes | 7.125% Medium-term Notes, Series B, due February 15, 2028 | ||
Debt Instrument [Line Items] | ||
Gross amount | 100,000 | 100,000 |
Interest Rate | 7.13% | 7.13% |
Notes Payable | 4.625% Notes, due September 1, 2021 | ||
Debt Instrument [Line Items] | ||
Gross amount | $400,000 | $400,000 |
Interest Rate | 4.63% | 4.63% |
LongTerm_Debt_and_Notes_Payabl3
Long-Term Debt and Notes Payable - Maturities of Long-Term Debt (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
Remaining 2015 | $0 |
2016 | 0 |
2017 | 19,000 |
2018 | 0 |
2019 | 685,000 |
2020 and thereafter | $535,000 |
LongTerm_Debt_and_Notes_Payabl4
Long-Term Debt and Notes Payable - Credit Facilities (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | Apr. 16, 2015 | |
Debt Instrument [Line Items] | |||
Credit facility outstanding | $485,000,000 | ||
Available for borrowings | 1,515,000,000 | ||
Total borrowing commitments | 2,000,000,000 | ||
Maximum amount outstanding at any month-end | 685,000,000 | 750,000,000 | |
Average daily amount outstanding | 569,589,000 | 482,166,000 | |
Average daily amount outstanding interest rate | 1.60% | 1.46% | |
Amount outstanding at period-end interest rate | 1.68% | 1.67% | |
Subsequent Event | |||
Debt Instrument [Line Items] | |||
Credit facility outstanding | 685,000,000 | ||
Available for borrowings | 915,000,000 | ||
Total borrowing commitments | $1,600,000,000 |
LongTerm_Debt_and_Notes_Payabl5
Long-Term Debt and Notes Payable - Additional Information (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Sep. 02, 2014 | Dec. 31, 2014 | Nov. 17, 2014 | Apr. 16, 2015 | |
Debt Instrument [Line Items] | ||||||
Cross default provision, threshold amount | $10,000,000 | |||||
Initial borrowing base | 2,000,000,000 | |||||
Interest expense | 11,758,000 | 7,888,000 | ||||
Capitalized interest expense | 32,000 | 0 | ||||
Loan limit percentage (less than) | 10.00% | |||||
Credit facility cross default provision, threshold amount | 75,000,000 | |||||
Commitment fee (basis points) | 0.30% | |||||
Syndicated Credit Facility | Credit Facility, September 2, 2014 | ||||||
Debt Instrument [Line Items] | ||||||
Term of credit facility | 5 years | |||||
Initial borrowing base | 2,100,000,000 | |||||
Maximum borrowing capacity | 1,500,000,000 | 2,000,000,000 | ||||
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 | |||||
Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Initial borrowing base | 1,600,000,000 | |||||
Subsequent Event | Syndicated Credit Facility | Credit Facility, September 2, 2014 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $1,600,000,000 |
Reconciliation_of_Earnings_Per2
Reconciliation of Earnings Per Share (EPS) - Earnings Per Share Reconciliation (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share Reconciliation | ||
Net Income (Loss), Basic EPS | ($15,420) | $53,316 |
Basic Shares Outstanding (in shares) | 72,830 | 72,629 |
Earnings Per Share, Basic (in dollars per share) | ($0.21) | $0.73 |
Effect of dilutive securities | ||
Net Income (Loss), Diluted EPS | ($15,420) | $53,316 |
Diluted Shares Outstanding (in shares) | 72,830 | 73,045 |
Earnings Per Share, Diluted (dollars per share) | ($0.21) | $0.73 |
Stock options | ||
Effect of dilutive securities | ||
Incremental common shares attributable to share-based payment arrangements | 0 | 296 |
Non-vested restricted stock | ||
Effect of dilutive securities | ||
Incremental common shares attributable to share-based payment arrangements | 0 | 44 |
Performance share awards | ||
Effect of dilutive securities | ||
Incremental common shares attributable to share-based payment arrangements | 0 | 76 |
Reconciliation_of_Earnings_Per3
Reconciliation of Earnings Per Share (EPS) - Antidilutive Securities (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 284,150 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 112,000 |
Performance share awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 68,000 |
Stock_Compensation_Details
Stock Compensation (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Feb. 28, 2015 | Mar. 31, 2014 |
Stock options | Stock Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period | 3 years | ||
Expiration period | 10 years | ||
Restricted Stock Units (RSUs) | Stock Compensation Plan | 3 year vesting period | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period | 3 years | ||
Grants in period (in shares) | 99,814 | ||
Weighted average grant date fair value | $65.15 | ||
Restricted Stock Units (RSUs) | Petrotech Incentive Plan | 3 year vesting period | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Grants in period (in shares) | 64,305 | ||
Weighted average grant date fair value | 91.65 | ||
Performance share awards | Stock Compensation Plan | 3 year vesting period | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period | 3 years | ||
Grants in period (in shares) | 120,372 | ||
Weighted average grant date fair value | 83.94 | ||
Performance share awards | Petrotech Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Grants in period (in shares) | 59,288 | ||
Weighted average grant date fair value | 65.78 | ||
Performance share awards | Petrotech Incentive Plan | Vesting Period, Twenty Months [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period | 24 months | ||
Performance share awards | Petrotech Incentive Plan | 3 year vesting period | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period | 3 years | ||
Performance share awards | Petrotech Incentive Plan | 16 month vesting period | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Grants in period (in shares) | 1,472 | ||
Weighted average grant date fair value | 65.92 | ||
Performance share awards | Petrotech Incentive Plan | 24 month vesting period | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Grants in period (in shares) | 265 | ||
Weighted average grant date fair value | 65.86 | ||
Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period | 3 years | ||
Deferred Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Noncash payments for repurchase of common stock | 4.4 | $0.30 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Reclassification of Rabbi Trust investments | $3,400,000 | |
Pension Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 0 | 1,635,000 |
Interest cost | 204,000 | 1,413,000 |
Expected long-term return on assets | 0 | -1,460,000 |
Actuarial gain | 184,000 | 1,412,000 |
Prior service cost amortization | 0 | 57,000 |
Settlement charge | 2,662,000 | 3,558,000 |
Net periodic (income) expense | 3,050,000 | 6,615,000 |
Anticipated contributions by employer | 13,700,000 | |
Benefit payments made in current fiscal year | 10,900,000 | |
Additional benefit payments within the next 12 months | 100,000 | |
Settlement charges | 200,000 | |
Settlement charges expensed | 6,900,000 | |
Settlement charges in discontinued operations | 3,700,000 | |
Postretirement Benefit Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 98,000 | 60,000 |
Interest cost | 117,000 | 226,000 |
Expected long-term return on assets | -114,000 | -387,000 |
Actuarial gain | 0 | -212,000 |
Transition amortization | 0 | 15,000 |
Net periodic (income) expense | 101,000 | -298,000 |
Non-Qualified Supplemental Employee Retirement Plan | ||
Components of net periodic benefit cost: | ||
Settlement charges | $2,500,000 | $400,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
pit | |
Crude Oil and Natural Gas | |
Long-term Purchase Commitment [Line Items] | |
Delivery commitments (MMBOE) | 5,500 |
Mitchell County, Texas | |
Long-term Purchase Commitment [Line Items] | |
Number of sites | 9 |
Anticipated cost of cleanup, remediation and related costs | $2.50 |
Costs incurred for cleanup, remediation and related items | $1.90 |
Commitments_and_Contingencies_1
Commitments and Contingencies - New Mexico Audits (Details) (Unfavorable Regulatory Action, USD $) | Mar. 31, 2015 |
Unfavorable Regulatory Action | |
Loss Contingencies [Line Items] | |
Minimum loss contingency range of loss | $129,700 |
Maximum loss contingency range of possible loss | $24,000,000 |
Exploratory_Costs_Details
Exploratory Costs (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
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 | $119,439 | $57,600 | |
Additions pending determination of proved reserves | 230,061 | 164,842 | |
Reclassifications due to determination of proved reserves | -234,291 | -112,474 | |
Capitalized exploratory well costs at end of period | 115,209 | 109,968 | |
Exploratory wells in progress (drilling rig not released) | 13,063 | 18,781 | |
Capitalized exploratory well costs capitalized for a period of one year or less | 102,146 | 100,658 | |
Total capitalized exploratory well costs | $115,209 | $119,439 | |
Number of wells in process of drilling | 41 |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance as of December 31, 2014 | $94,060 | |
Liabilities incurred | 455 | |
Liabilities settled | -262 | |
Accretion expense | 2,010 | 1,843 |
Reclassification associated with held for sale properties | 1,052 | |
Balance as of March 31, 2015 | $97,315 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Rollforward of Accumulated Other Comprehensive Income (Loss) (Details) (Pension and Postretirement Plans, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Pension and Postretirement Plans | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2014 | ($22,870) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,851 |
Balance as of March 31, 2015 | ($21,019) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Reclassifications of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Gains (losses) on cash flow hedges: | ||
Income tax expense | $8,701 | ($8,248) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Gains (losses) on cash flow hedges: | ||
Net of tax | -1,851 | -3,389 |
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
Gains (losses) on cash flow hedges: | ||
Total | 0 | 3,608 |
Income tax expense | 0 | -1,384 |
Net of tax | 0 | 2,224 |
Pension and Postretirement Plans | Reclassification out of Accumulated Other Comprehensive Income | ||
Gains (losses) on cash flow hedges: | ||
Total | -2,847 | -8,636 |
Income tax expense | 996 | 3,023 |
Net of tax | -1,851 | -5,613 |
Pension and postretirement plans: | ||
Transition obligation | 0 | -10 |
Prior service cost | 0 | -74 |
Actuarial losses | -2,847 | -8,552 |
Commodity contracts | Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
Gains (losses) on cash flow hedges: | ||
Reclassification Adjustment from AOCI on Derivatives | 0 | 4,054 |
Interest rate swap | Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
Gains (losses) on cash flow hedges: | ||
Reclassification Adjustment from AOCI on Derivatives | $0 | ($446) |
Asset_Impairment_Additional_In
Asset Impairment - Additional Information (Details) (North Louisiana and East Texas Natural Gas and Oil Properties, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | bbl | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Sale price of gas and oil properties | $30.30 | |
Oil | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Proved Developed Reserves (Volume) | 91,000 | |
Natural Gas | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Proved Developed Reserves (Volume) | 23,000,000 |
Asset_Impairment_Summary_of_Im
Asset Impairment - Summary of Impairments Recognized (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset impairment | $6,583 | $1,246 |
Impairment of oil and gas properties held-for-sale | 0 | 1,667 |
Asset impairment charges, including discontinued operations | 6,583 | 2,913 |
Permian Basin and San Juan Basin [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset impairment | 2,253 | |
Permian Basin | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset impairment | 2,005 | 1,247 |
San Juan Basin | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset impairment | 248 | -1 |
North Louisiana and East Texas Natural Gas and Oil Properties | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of oil and gas properties held-for-sale | 0 | 1,667 |
Oil | Permian Basin | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset impairment | $4,330 | $0 |
Acquisition_and_Dispositions_o
Acquisition and Dispositions of Properties - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Oct. 31, 2014 |
MBoe | acre | ||
Gas and Oil Acreage [Line Items] | |||
Proved developed reserves (Energy) | 69,038 | ||
Payment for unproved leasehold | $30.70 | $68.50 | |
San Juan | |||
Gas and Oil Acreage [Line Items] | |||
Acres of unproved leasehold, net | 15,000 | ||
Payment for unproved leasehold | 22.8 | ||
San Juan Basin | |||
Gas and Oil Acreage [Line Items] | |||
Amount of consideration received | 395 | ||
Purchase price adjustments | 11 | ||
Pre-tax proceeds | 384 | ||
Transaction costs | 2.8 | ||
San Juan Basin | San Juan | |||
Gas and Oil Acreage [Line Items] | |||
Pre-tax gain on disposal | $28.10 |
Acquisition_and_Disposition_of2
Acquisition and Disposition of Properties - Pro Forma Financial Information (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total revenues | $221,858 | $297,431 |
Income (loss) from continuing operations | -15,420 | 15,647 |
Net Income (Loss) | -15,420 | 53,316 |
Diluted earnings per average common share from continuing operations | ($0.21) | $0.21 |
Diluted earnings per average common share | ($0.21) | $0.73 |
Basic earnings per average common share from continuing operations | ($0.21) | $0.21 |
Basic earnings per average common share | ($0.21) | $0.73 |
San Juan Basin | Pro Forma | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total revenues | 198,213 | 243,090 |
Income (loss) from continuing operations | -33,495 | 1,849 |
Net Income (Loss) | ($33,495) | $39,518 |
Diluted earnings per average common share from continuing operations | ($0.46) | $0.03 |
Diluted earnings per average common share | ($0.46) | $0.54 |
Basic earnings per average common share from continuing operations | ($0.46) | $0.03 |
Basic earnings per average common share | ($0.46) | $0.54 |
Discontinued_Operations_and_He2
Discontinued Operations and Held for Sale Properties - Additional Information (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Sep. 02, 2014 | Dec. 31, 2013 | |
Mcf | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss on disposal of discontinued operations | ($1,667,000) | |||
Impairment of oil and gas properties held-for-sale | 0 | 1,667,000 | ||
Alabama Gas Corporation | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Amount of consideration received | 1,600,000,000 | |||
Amount of debt assumed | 267,000,000 | |||
Proceeds from sale | 1,320,000,000 | |||
Loss on disposal of discontinued operations | 726,500,000 | |||
North Louisiana and East Texas Natural Gas and Oil Properties | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sale price of gas and oil properties | 30,300,000 | |||
Impairment of oil and gas properties held-for-sale | $0 | $1,667,000 | ||
North Louisiana and East Texas Natural Gas and Oil Properties | Natural Gas | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proved Developed Reserves (Volume) | 23,000,000 | |||
North Louisiana and East Texas Natural Gas and Oil Properties | Oil | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proved Developed Reserves (Volume) | 91,000 |
Discontinued_Operations_and_He3
Discontinued Operations and Held for Sale Properties - Balance Sheet and Income Statement (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Assets of Disposal Group, Including Discontinued Operation [Abstract] | |||
Total liabilities held for sale | $0 | ($24,230) | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Natural gas distribution revenues | 263,900 | ||
Oil and natural gas revenues | 4,812 | ||
Total revenues | 268,712 | ||
Pretax income from discontinued operations | 62,316 | ||
Income tax expense | 23,597 | ||
Income From Discontinued Operations | 38,719 | ||
Loss on disposal of discontinued operations | -1,667 | ||
Income tax benefit | -617 | ||
Loss on Disposal of Discontinued Operations | 0 | -1,050 | |
Income From Discontinued Operations | 0 | 37,669 | |
Diluted Earnings Per Average Common Share | |||
Income from discontinued operations (in dollars per share) | $0.53 | ||
Loss on disposal of discontinued operations (in dollars per share) | ($0.01) | ||
Total Income (Loss) From Discontinued Operations (in dollars per share) | $0 | $0.52 | |
Basic Earnings Per Average Common Share | |||
Income from discontinued operations (in dollars per share) | $0.53 | ||
Loss on disposal of discontinued operations (in dollars per share) | ($0.01) | ||
Total Income (Loss) From Discontinued Operations (in dollars per share) | $0 | $0.52 | |
San Juan Basin | |||
Assets of Disposal Group, Including Discontinued Operation [Abstract] | |||
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 |