Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 27, 2013 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | RRC | |
Entity Registrant Name | RANGE RESOURCES CORP | |
Entity Central Index Key | 315852 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 163,421,596 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $255 | $252 |
Accounts receivable, less allowance for doubtful accounts of $2,496 and $2,374 | 151,407 | 167,495 |
Unrealized derivatives | 55,993 | 137,552 |
Deferred tax asset | 2,179 | |
Inventory and other | 12,898 | 22,315 |
Total current assets | 222,732 | 327,614 |
Unrealized derivatives | 18,074 | 15,715 |
Equity method investments | 127,236 | 132,449 |
Natural gas and oil properties, successful efforts method | 8,667,682 | 8,111,775 |
Accumulated depletion and depreciation | -2,160,378 | -2,015,591 |
Natural gas and oil properties, successful efforts method, net | 6,507,304 | 6,096,184 |
Transportation and field assets | 117,566 | 117,717 |
Accumulated depreciation and amortization | -82,652 | -76,150 |
Transportation and field assets, net | 34,914 | 41,567 |
Other assets | 120,370 | 115,206 |
Total assets | 7,030,630 | 6,728,735 |
Current liabilities: | ||
Accounts payable | 251,635 | 234,651 |
Asset retirement obligations | 2,366 | 2,470 |
Accrued liabilities | 159,697 | 139,379 |
Deferred tax liability | 37,924 | |
Accrued interest | 31,914 | 36,248 |
Unrealized derivatives | 7,971 | 4,471 |
Total current liabilities | 453,583 | 455,143 |
Bank debt | 427,000 | 739,000 |
Subordinated notes | 2,640,170 | 2,139,185 |
Deferred tax liability | 759,556 | 698,302 |
Unrealized derivatives | 103 | 3,463 |
Deferred compensation liability | 207,404 | 187,604 |
Asset retirement obligations and other liabilities | 151,813 | 148,646 |
Total liabilities | 4,639,629 | 4,371,343 |
Commitments and contingencies | ||
Stockholders’ Equity | ||
Preferred stock, $1 par, 10,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.01 par, 475,000,000 shares authorized, 163,418,445 issued at September 30, 2013 and 162,641,896 issued at December 31, 2012 | 1,634 | 1,626 |
Common stock held in treasury, 101,301 shares at September 30, 2013 and 127,798 shares at December 31, 2012 | -3,751 | -4,760 |
Additional paid-in capital | 1,944,437 | 1,915,627 |
Retained earnings | 428,948 | 360,990 |
Accumulated other comprehensive income | 19,733 | 83,909 |
Total stockholders’ equity | 2,391,001 | 2,357,392 |
Total liabilities and stockholders’ equity | $7,030,630 | $6,728,735 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts on accounts receivable | $2,496 | $2,374 |
Preferred stock, par value | $1 | $1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 475,000,000 | 475,000,000 |
Common stock, shares issued | 163,418,445 | 162,641,896 |
Common stock held in treasury, shares | 101,301 | 127,798 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues and other income: | ||||
Natural gas, NGLs and oil sales | $431,214 | $337,040 | $1,267,131 | $953,006 |
Derivative fair value (loss) income | -40,355 | -40,728 | -2,470 | 47,008 |
Gain (loss) on the sale of assets | 6,008 | 949 | 89,129 | -12,704 |
Brokered natural gas, marketing and other | 45,171 | 2,519 | 80,843 | 12,356 |
Total revenues and other income | 442,038 | 299,780 | 1,434,633 | 999,666 |
Costs and expenses: | ||||
Direct operating | 30,907 | 29,628 | 93,731 | 85,691 |
Transportation, gathering and compression | 60,958 | 51,600 | 189,422 | 137,164 |
Production and ad valorem taxes | 11,454 | 8,819 | 33,950 | 57,239 |
Brokered natural gas and marketing | 51,117 | 4,887 | 90,094 | 15,440 |
Exploration | 20,496 | 14,752 | 50,344 | 51,785 |
Abandonment and impairment of unproved properties | 11,692 | 40,118 | 46,066 | 104,048 |
General and administrative | 44,919 | 44,497 | 230,964 | 127,231 |
Deferred compensation plan | -2,225 | 20,052 | 33,257 | 21,555 |
Interest expense | 44,321 | 43,997 | 131,602 | 124,090 |
Loss on early extinguishment of debt | 12,280 | |||
Depletion, depreciation and amortization | 130,343 | 123,059 | 365,439 | 332,012 |
Impairment of proved properties and other assets | 7,012 | 1,281 | 7,753 | 1,281 |
Total costs and expenses | 410,994 | 382,690 | 1,284,902 | 1,057,536 |
Income (loss) from operations before income taxes | 31,044 | -82,910 | 149,731 | -57,870 |
Income tax expense (benefit) | ||||
Current | ||||
Deferred | 11,866 | -29,074 | 62,180 | -17,910 |
Total income tax expense | 11,866 | -29,074 | 62,180 | -17,910 |
Net income (loss) | $19,178 | ($53,836) | $87,551 | ($39,960) |
Net income (loss) per common share: | ||||
Basic | $0.12 | ($0.34) | $0.54 | ($0.25) |
Diluted | $0.12 | ($0.34) | $0.53 | ($0.25) |
Dividends paid per common share | $0.04 | $0.04 | $0.12 | $0.12 |
Weighted average common shares outstanding: | ||||
Basic | 160,500 | 159,563 | 160,398 | 159,297 |
Diluted | 161,374 | 159,563 | 161,321 | 159,297 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net income (loss) | $19,178 | ($53,836) | $87,551 | ($39,960) | ||||
Other comprehensive income: | ||||||||
Realized loss (gain) on hedge derivative contract settlements reclassified into natural gas, NGLs and oil sales from other comprehensive income, net of taxes | -37,495 | [1] | -14,840 | [1] | -120,871 | [1] | ||
De-designated hedges reclassified into natural gas, NGLs and oil sales, net of taxes | -16,717 | [2] | -42,758 | [2] | ||||
De-designated hedges reclassified to derivative fair value income, net of taxes | -438 | [3] | -2,376 | [3] | ||||
Change in unrealized deferred hedging (losses) gains, net of taxes | -52,246 | [4] | -4,203 | [4] | 31,541 | [4] | ||
Total comprehensive income (loss) | $2,023 | ($143,577) | $23,374 | ($129,290) | ||||
[1] | Amounts are net of income tax expense of $23,972 for the three months ended September 30, 2012 and $9,488 and $76,806 for the nine months ended September 30, 2013 and 2012. | |||||||
[2] | Amounts are net of income tax expense of $10,688 for the three months ended September 30, 2013 and $27,337 for the nine months ended September 30, 2013. | |||||||
[3] | Amounts relate to transactions not probable of occurring and are presented net of income tax expense of $279 for the three months ended September 30, 2013 and $1,518 for the nine months ended September 30, 2013. | |||||||
[4] | Amounts are net of income tax expense of $33,403 for the three months ended September 30, 2012 and income tax benefit of $21,780 for the nine months ended September 30, 2012. Amounts are net of income tax expense of $2,687 for the nine months ended September 30, 2013. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Realized loss (gain) on hedge derivative contract settlements reclassified into natural gas, NGLs and oil sales from other comprehensive income, tax portion | $23,972 | $9,488 | $76,806 | |
De-designated hedges reclassified into natural gas, NGLs and oil sales, tax portion | 10,688 | 27,337 | ||
De-designated hedges reclassified to derivative fair value income, tax portion | 279 | 1,518 | ||
Change in unrealized deferred hedging gains, tax effect | $33,403 | $2,687 | ($21,780) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities: | ||
Net income (loss) | $87,551 | ($39,960) |
Adjustments to reconcile net income (loss) to net cash provided from operating activities: | ||
(Gain) loss from equity method investments, net of distributions | -1,174 | 2,252 |
Deferred income tax expense (benefit) | 62,180 | -17,910 |
Depletion, depreciation and amortization and impairment | 373,192 | 333,293 |
Exploration dry hole costs | 3,904 | 832 |
Mark-to-market on natural gas, NGLs and oil derivatives not designated as hedges | -28,350 | -30,076 |
Abandonment and impairment of unproved properties | 46,066 | 104,048 |
Unrealized derivative loss | 2,485 | 5,061 |
Allowance for bad debt | 250 | |
Amortization of deferred financing costs, loss on extinguishment of debt and other | 19,735 | 5,970 |
Deferred and stock-based compensation | 74,187 | 58,573 |
(Gain) loss on the sale of assets | -89,129 | 12,704 |
Changes in working capital: | ||
Accounts receivable | -6,506 | -9,479 |
Inventory and other | 3,259 | -5,394 |
Accounts payable | -29,234 | 11,074 |
Accrued liabilities and other | -15,550 | 30,135 |
Net cash provided from operating activities | 502,866 | 461,123 |
Investing activities: | ||
Additions to natural gas and oil properties | -907,813 | -1,151,167 |
Additions to field service assets | -4,326 | -3,056 |
Acreage purchases | -70,187 | -175,041 |
Equity method investments | 3,799 | |
Proceeds from disposal of assets | 311,748 | 32,082 |
Purchases of marketable securities held by the deferred compensation plan | -23,729 | -33,997 |
Proceeds from the sales of marketable securities held by the deferred compensation plan | 19,375 | 21,485 |
Net cash used in investing activities | -671,133 | -1,309,694 |
Financing activities: | ||
Borrowing on credit facilities | 1,310,000 | 1,139,000 |
Repayment on credit facilities | -1,622,000 | -865,000 |
Issuance of subordinated notes | 750,000 | 600,000 |
Repayment of subordinated notes | -259,063 | |
Dividends paid | -19,593 | -19,475 |
Debt issuance costs | -12,448 | -12,606 |
Issuance of common stock | 343 | 2,073 |
Change in cash overdrafts | 4,704 | -15,750 |
Proceeds from the sales of common stock held by the deferred compensation plan | 16,327 | 20,388 |
Net cash provided from financing activities | 168,270 | 848,630 |
Increase in cash and cash equivalents | 3 | 59 |
Cash and cash equivalents at beginning of period | 252 | 92 |
Cash and cash equivalents at end of period | $255 | $151 |
Summary_of_Organization_and_Na
Summary of Organization and Nature of Business | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Organization and Nature of Business | (1) SUMMARY OF ORGANIZATION AND NATURE OF BUSINESS |
Range Resources Corporation (“Range,” “we,” “us,” or “our”) is a Fort Worth, Texas-based independent natural gas, natural gas liquids (“NGLs”) and oil company primarily engaged in the exploration, development and acquisition of natural gas and oil properties in the Appalachian and Southwestern regions of the United States. Our objective is to build stockholder value through consistent growth in reserves and production on a cost-efficient basis. Range is a Delaware corporation with our common stock listed and traded on the New York Stock Exchange under the symbol “RRC.” |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | (2) BASIS OF PRESENTATION |
Presentation | |
These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Range Resources Corporation 2012 Annual Report on Form 10-K filed on February 27, 2013. The results of operations for the third quarter and the nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year. These consolidated financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for fair presentation of the results for the periods presented. All adjustments are of a normal recurring nature unless otherwise disclosed. These consolidated financial statements, including selected notes, have been prepared in accordance with the applicable rules of the Securities and Exchange Commission (the “SEC”) and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. Certain reclassifications have been made to prior years reported amounts in order to conform with the current year presentation. These reclassifications include gas purchases and other marketing costs which were previously reported in other income and are currently reported as a separate operating expense. These reclassifications have no impact on previously reported net income. | |
Impact Fee | |
In first quarter 2012, the Pennsylvania legislature passed an “impact fee” on unconventional natural gas and oil production. The impact fee is a per well annual fee imposed for a period of fifteen years on all unconventional wells drilled in Pennsylvania. The fee is based on the average annual price of natural gas and the Consumer Price Index. The annual fee per well declines each year over the fifteen-year time period as long as the well is producing. In first nine months 2012, we recorded a retroactive impact fee of $24.7 million for wells drilled during 2011 and prior. This expense is reflected in our statements of operations as production and ad valorem taxes. | |
De-designation of Commodity Derivative Contracts | |
Effective March 1, 2013, we elected to discontinue hedge accounting prospectively. After March 1, 2013, both realized and unrealized gains and losses will be recognized in earnings in derivative fair value income (loss) immediately each quarter as derivative contracts are settled and marked to market. For third quarter 2013, unrealized gains of $3.1 million and for the nine months ended September 30, 2013, unrealized gains of $25.5 million were included in our statements of operations in derivative fair value income (loss) that, prior to March 1, 2013, would have been deferred in accumulated other comprehensive income (“AOCI”) if we had continued using hedge accounting. Refer to Note 11 for additional information. |
New_Accounting_Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Standards | (3) NEW ACCOUNTING STANDARDS |
Recently Adopted | |
In December 2011, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities,” requiring additional disclosures about offsetting and related arrangements. ASU 2011-11 is effective retrospectively for annual reporting periods beginning on or after January 1, 2013. Also, in January 2013, the FASB issued ASU No. 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” ASU 2013-01 revised and clarified the disclosures required by ASU No. 2011-11. We adopted these new requirements in first quarter 2013 and they did not have a material effect on our consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income.” ASU 2013-02 requires information to be disclosed about the amounts reclassified out of AOCI by component. We adopted this new requirement in first quarter 2013 and it did not have a material effect on our consolidated financial statements. |
Dispositions
Dispositions | 9 Months Ended |
Sep. 30, 2013 | |
Dispositions | (4) DISPOSITIONS |
2013 Dispositions | |
In September 2013, we sold our equity method investment in a drilling company for proceeds of $7.0 million and recognized a gain of $4.4 million. In addition, in the third quarter 2013 we sold unproved leases in West Texas for proceeds of $2.6 million where we recognized a gain of $1.7 million and sold surface acreage in North Texas for proceeds of $5.3 million with a loss of $253,000 recognized. | |
In December 2012, we announced our plan to offer for sale certain of our Delaware and Permian Basin properties in southeast New Mexico and West Texas. On February 26, 2013, we announced we signed a definitive agreement to sell these assets for a price of $275.0 million, subject to normal post-closing adjustments. The agreement had an effective date of January 1, 2013 and consequently, operating net revenues after January 1, 2013 were a downward adjustment to the sales price. We closed this disposition on April 1 and we recognized a gain of approximately $83.5 million in second quarter 2013 related to this sale, before selling expenses of $4.2 million. Also in second quarter 2013, we received $14.2 million of proceeds from the sale of miscellaneous oil and gas properties in Pennsylvania and West Texas and we recognized a gain of $4.0 million on these transactions. In the first nine months 2013, we also received $10.0 million of proceeds from the sale of miscellaneous oil and gas property in Pennsylvania, with no gain or loss recognized. | |
2012 Dispositions | |
In September 2012, we sold unproved properties in three counties in Pennsylvania for proceeds of $13.9 million resulting in a pre-tax gain of $746,000. As part of this agreement, we retained an overriding royalty of 1% to 5% on a large portion of the leases. | |
In June 2012, we sold a suspended well in the Marcellus Shale for proceeds of $2.5 million resulting in a pre-tax loss of $2.5 million. In March 2012, we sold seventy-five percent of a prospect in East Texas which included unproved properties and a suspended exploratory well to a third party for $8.6 million resulting in a pre-tax loss of $10.9 million. As part of this agreement, we retained a carried interest on the first well drilled and an overriding royalty of 2.5% to 5.0% in the prospect. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Income Taxes | (5) INCOME TAXES | ||||||||||||||||||||||||
Income tax expense (benefit) from operations was as follows (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Income tax expense (benefit) | $ | 11,866 | $ | (29,074 | ) | $ | 62,180 | $ | (17,910 | ) | |||||||||||||||
Effective tax rate | 38.2 | % | 35.1 | % | 41.5 | % | 30.9 | % | |||||||||||||||||
We compute our quarterly taxes under the effective tax rate method based on applying an anticipated annual effective rate to our year-to-date income, except for discrete items. Income taxes for discrete items are computed and recorded in the period that the specific transaction occurs. For third quarter and the nine months ended September 30, 2013 and 2012, our overall effective tax rate on operations was different than the federal statutory rate of 35% due primarily to state income taxes, valuation allowances and other permanent differences. |
Income_Per_Common_Share
Income Per Common Share | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Income (Loss) Per Common Share | (6) INCOME (LOSS) PER COMMON SHARE | |||||||||||||||||||||||||
Basic income or loss per share attributable to common shareholders is computed as (1) income or loss attributable to common shareholders (2) less income allocable to participating securities (3) divided by weighted average basic shares outstanding. Diluted income or loss per share attributable to common stockholders is computed as (1) basic income or loss attributable to common shareholders (2) plus diluted adjustments to income allocable to participating securities (3) divided by weighted average diluted shares outstanding. The following tables set forth a reconciliation of income or loss attributable to common shareholders to basic income or loss attributable to common shareholders to diluted income or loss attributable to common shareholders (in thousands except per share amounts): | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Net income (loss), as reported | $ | 19,178 | $ | (53,836 | ) | $ | 87,551 | $ | (39,960 | ) | ||||||||||||||||
Participating basic earnings (a) | (341 | ) | (119 | ) | (1,479 | ) | (348 | ) | ||||||||||||||||||
Basic net income (loss) attributed to common shareholders | 18,837 | (53,955 | ) | 86,072 | (40,308 | ) | ||||||||||||||||||||
Reallocation of participating earnings (a) | 1 | — | 6 | — | ||||||||||||||||||||||
Diluted net income (loss) attributed to common shareholders | $ | 18,838 | $ | (53,955 | ) | $ | 86,078 | $ | (40,308 | ) | ||||||||||||||||
Net income (loss) per common share: | ||||||||||||||||||||||||||
Basic | $ | 0.12 | $ | (0.34 | ) | $ | 0.54 | $ | (0.25 | ) | ||||||||||||||||
Diluted | $ | 0.12 | $ | (0.34 | ) | $ | 0.53 | $ | (0.25 | ) | ||||||||||||||||
(a) Restricted Stock Awards represent participating securities because they participate in nonforfeitable dividends or distributions with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Participating securities, however, do not participate in undistributed net losses. | ||||||||||||||||||||||||||
The following table provides a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding (in thousands): | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Weighted average common shares outstanding – basic | 160,500 | 159,563 | 160,398 | 159,297 | ||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||
Director and employee stock options and SARs | 874 | — | 923 | — | ||||||||||||||||||||||
Weighted average common shares outstanding – diluted | 161,374 | 159,563 | 161,321 | 159,297 | ||||||||||||||||||||||
Weighted average common shares – basic for the three months ended September 30, 2013 excludes 2.9 million shares and the three months ended September 30, 2012 excludes 3.0 million shares of restricted stock held in our deferred compensation plans (although all awards are issued and outstanding upon grant). Weighted average common shares – basic for the nine months ended September 30, 2013 excludes 2.8 million shares of restricted stock compared to 2.9 million in the same period of 2012. Stock appreciation rights (“SARs”) of 796 for the three months ended September 30, 2013 and 181,000 for the nine months ended September 30, 2013 were outstanding but not included in the computations of diluted income from operations per share because the grant prices of the SARs were greater than the average market price of the common shares. Due to our loss from continuing operations for the three months and the nine months ended September 30, 2012, we excluded all outstanding SARs and restricted stock from the computation of diluted net income (loss) per share because the effect would have been anti-dilutive to the computations. |
Suspended_Exploratory_Well_Cos
Suspended Exploratory Well Costs | 9 Months Ended | |||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||
Suspended Exploratory Well Costs | (7) SUSPENDED EXPLORATORY WELL COSTS | |||||||||||||||||||||||||||||||||||
We capitalize exploratory well costs until a determination is made that the well has either found proved reserves or that it is impaired. Capitalized exploratory well costs are presented in natural gas and oil properties in the accompanying consolidated balance sheets. If an exploratory well is determined to be impaired, the well costs are charged to exploration expense in the accompanying consolidated statements of operations. The following table reflects the changes in capitalized exploratory well costs for the nine months ended September 30, 2013 and the year ended December 31, 2012 (in thousands except for number of projects): | ||||||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 57,360 | $ | 93,388 | ||||||||||||||||||||||||||||||||
Additions to capitalized exploratory well costs pending the determination of proved reserves | 61,751 | 153,250 | ||||||||||||||||||||||||||||||||||
Reclassifications to wells, facilities and equipment based on determination of proved reserves | (80,358 | ) | (184,298 | ) | ||||||||||||||||||||||||||||||||
Capitalized exploratory well costs charged to expense | (3,950 | ) | | |||||||||||||||||||||||||||||||||
Divested wells | | (4,980 | ) | |||||||||||||||||||||||||||||||||
Balance at end of period | 34,803 | 57,360 | ||||||||||||||||||||||||||||||||||
Less exploratory well costs that have been capitalized for a period of one year or less | (21,923 | ) | (45,965 | ) | ||||||||||||||||||||||||||||||||
Capitalized exploratory well costs that have been capitalized for a period greater than | $ | 12,880 | $ | 11,395 | ||||||||||||||||||||||||||||||||
one year | ||||||||||||||||||||||||||||||||||||
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year | 4 | 5 | ||||||||||||||||||||||||||||||||||
As of September 30, 2013, $12.9 million of capitalized exploratory well costs have been capitalized for more than one year which relates to two wells waiting on pipelines and two wells currently in the completion stage. One of the wells is not operated by us and all of the wells are in Pennsylvania. In 2012, we sold a seventy-five percent interest in an East Texas exploratory well. Refer to Note 4 for additional information. | ||||||||||||||||||||||||||||||||||||
The following table provides an aging of capitalized exploratory well costs that have been suspended for more than one year as of September 30, 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||
Total | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||
Capitalized exploratory well costs that have been capitalized for more than one year | $ | 12,880 | $ | 208 | $ | 6,904 | $ | 1,289 | $ | 72 | $ | 2,884 | $ | 1,523 | ||||||||||||||||||||||
Indebtedness
Indebtedness | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Indebtedness | (8) INDEBTEDNESS | |||||||||
We had the following debt outstanding as of the dates shown below (in thousands) (bank debt interest rate at September 30, 2013 is shown parenthetically; no interest was capitalized during the three months or the nine months ended September 30, 2013 or 2012): | ||||||||||
September 30, | December 31, | |||||||||
2013 | 2012 | |||||||||
Bank debt (1.9%) | $ | 427,000 | $ | 739,000 | ||||||
Senior subordinated notes: | ||||||||||
7.25% senior subordinated notes due 2018 | — | 250,000 | ||||||||
8.00% senior subordinated notes due 2019, net of $9,830 and $10,815 discount, respectively | 290,170 | 289,185 | ||||||||
6.75% senior subordinated notes due 2020 | 500,000 | 500,000 | ||||||||
5.75% senior subordinated notes due 2021 | 500,000 | 500,000 | ||||||||
5.00% senior subordinated notes due 2022 | 600,000 | 600,000 | ||||||||
5.00% senior subordinated notes due 2023 | 750,000 | — | ||||||||
Total debt | $ | 3,067,170 | $ | 2,878,185 | ||||||
Bank Debt | ||||||||||
In February 2011, we entered into an amended and restated revolving bank facility, which we refer to as our bank debt or our bank credit facility, which is secured by substantially all of our assets. The bank credit facility provides for an initial commitment equal to the lesser of the facility amount or the borrowing base. On September 30, 2013, the facility amount was $1.75 billion and the borrowing base was $2.0 billion. The bank credit facility provides for a borrowing base subject to redeterminations semi-annually and for event-driven unscheduled redeterminations. As part of our semi-annual bank review completed on October 18, 2013, our borrowing base was reaffirmed at $2.0 billion and our facility amount was also reaffirmed at $1.75 billion. Our current bank group is composed of twenty-eight financial institutions with no one bank holding more than 9% of the total facility. The bank credit facility amount may be increased to the borrowing base amount with twenty days’ notice, subject to the banks agreeing to participate in the facility increase and payment of a mutually acceptable commitment fee to those banks. As of September 30, 2013, the outstanding balance under our bank credit facility was $427.0 million. Additionally, we had $84.9 million of undrawn letters of credit leaving $1.2 billion of borrowing capacity available under the facility. The bank credit facility matures on February 18, 2016. Borrowings under the bank credit facility can either be at the Alternate Base Rate (as defined in the bank credit facility) plus a spread ranging from 0.50% to 1.5% or LIBOR borrowings at the Adjusted LIBO Rate (as defined in the bank credit facility) plus a spread ranging from 1.5% to 2.5%. The applicable spread is dependent upon borrowings relative to the borrowing base. We may elect, from time to time, to convert all or any part of our LIBOR loans to base rate loans or to convert all or any of the base rate loans to LIBOR loans. The weighted average interest rate was 1.9% for the three months ended September 30, 2013 compared to 2.1% for the three months ended September 30, 2012. The weighted average interest rate was 2.0% for the nine months ended September 30, 2013 compared to 2.2% for the nine months ended September 30, 2012. A commitment fee is paid on the undrawn balance based on an annual rate of 0.35% to 0.50%. At September 30, 2013, the commitment fee was 0.375% and the interest rate margin was 1.5% on our LIBOR loans and 0.5% on our base rate loans. | ||||||||||
Senior Subordinated Notes | ||||||||||
In March 2013, we issued $750.0 million aggregate principal amount of 5.00% senior subordinated notes due 2023 (the “Outstanding Notes”) at par for net proceeds of $738.8 million after underwriting commissions of $11.2 million. The offering of the Outstanding Notes were only offered to qualified institutional buyers and to Non-U.S. persons outside the United States in compliance with Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). On June 19, 2013, substantially all of the Outstanding Notes were exchanged for an equal principal amount of registered 5.00% senior subordinated notes due 2023 pursuant to an effective registration statement on Form S-4 filed on April 26, 2013 under the Securities Act (the “Exchange Notes”). The Exchange Notes are identical to the Outstanding Notes except that the Exchange Notes are registered under the Securities Act and do not have restrictions on transfer, registration rights or provisions for additional interest. As used in this Form 10-Q, the term “5.00% Notes due 2023” refer to both the Outstanding Notes and the Exchange Notes. Interest on the 5.00% Notes due 2023 is payable semi-annually in March and September and is guaranteed by all of our subsidiary guarantors. We may redeem the 5.00% Notes due 2023, in whole or in part, at any time on or after March 15, 2018, at a redemption price of 102.5% of the principal amount as of March 15, 2018, declining to 100% on March 15, 2021 and thereafter. Before March 15, 2016, we may redeem up to 35% of the original aggregate principal amount of the 5.00% Notes due 2023 at a redemption price equal to 105% of the principal amount thereof, plus accrued and unpaid interest, if any, with the proceeds of certain equity offerings, provided that 65% of the aggregate principal amount of 5.00% Notes due 2023 remains outstanding immediately after the occurrence of such redemption and also provided such redemption shall occur within 60 days of the date of the closing of the equity offering. On closing of the 5.00% Notes due 2023, we used the proceeds to pay down our outstanding bank credit facility balance. We did not receive any proceeds from the issuance of the Exchange Notes. | ||||||||||
If we experience a change of control, bondholders may require us to repurchase all or a portion of all of our senior subordinated notes at 101% of the aggregate principal amount plus accrued and unpaid interest, if any. All of the senior subordinated notes and the guarantees by our subsidiary guarantors are general, unsecured obligations and are subordinated to our bank debt and will be subordinated to future senior debt that we or our subsidiary guarantors are permitted to incur under the bank credit facility and the indentures governing the subordinated notes. | ||||||||||
Early Extinguishment of Debt | ||||||||||
On April 2, 2013, we announced a call for the redemption of $250.0 million of our outstanding 7.25% senior subordinated notes due 2018 at 103.625% of par which were redeemed on May 2, 2013. In second quarter 2013, we recognized a $12.3 million loss on extinguishment of debt, including transaction call premium costs as well as expensing of the remaining deferred financing costs on the repurchased debt. | ||||||||||
Guarantees | ||||||||||
Range Resources Corporation is a holding company which owns no operating assets and has no significant operations independent of its subsidiaries. The guarantees by our subsidiaries of our senior subordinated notes are full and unconditional and joint and several, subject to certain customary release provisions. A subsidiary guarantor may be released from its obligations under the guarantee: | ||||||||||
in the event of a sale or other disposition of all or substantially all of the assets of the subsidiary guarantor or a sale or other disposition of all the capital stock of the subsidiary guarantor, to any corporation or other person (including an unrestricted subsidiary of Range) by way of merger, consolidation, or otherwise; or | ||||||||||
if Range designates any restricted subsidiary that is a guarantor to be an unrestricted subsidiary in accordance with the terms of the indenture. | ||||||||||
Debt Covenants and Maturity | ||||||||||
Our bank credit facility contains negative covenants that limit our ability, among other things, to pay cash dividends, incur additional indebtedness, sell assets, enter into certain hedging contracts, change the nature of our business or operations, merge, consolidate, or make investments. In addition, we are required to maintain a ratio of debt to EBITDAX (as defined in the credit agreement) of no greater than 4.25 to 1.0 and a current ratio (as defined in the credit agreement) of no less than 1.0 to 1.0. We are in compliance with our covenants under the bank credit facility at September 30, 2013. | ||||||||||
The indentures governing our senior subordinated notes contain various restrictive covenants that are substantially identical to each other and may limit our ability to, among other things, pay cash dividends, incur additional indebtedness, sell assets, enter into transactions with affiliates, or change the nature of our business. At September 30, 2013, we are in compliance with these covenants. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Asset Retirement Obligations | (9) ASSET RETIREMENT OBLIGATIONS | ||||
Our asset retirement obligations primarily represent the estimated present value of the amounts we will incur to plug, abandon and remediate our producing properties at the end of their productive lives. Significant inputs used in determining such obligations include estimates of plugging and abandonment costs, estimated future inflation rates and well life. The inputs are calculated based on historical data as well as current estimated costs. A reconciliation of our liability for plugging and abandonment costs for the nine months ended September 30, 2013 is as follows (in thousands): | |||||
Nine Months | |||||
Ended | |||||
September 30, 2013 | |||||
Beginning of period | $ | 146,478 | |||
Liabilities incurred | 5,267 | ||||
Liabilities settled | (398 | ) | |||
Disposition of wells | (3,104 | ) | |||
Accretion expense | 8,011 | ||||
Change in estimate | (6,231 | ) | |||
End of period | 150,023 | ||||
Less current portion | (2,366 | ) | |||
Long-term asset retirement obligations | $ | 147,657 | |||
Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying statements of operations. |
Capital_Stock
Capital Stock | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Capital Stock | (10) CAPITAL STOCK | |||||
We have authorized capital stock of 485.0 million shares which includes 475.0 million shares of common stock and 10.0 million shares of preferred stock. We currently have no preferred stock issued or outstanding. The following is a schedule of changes in the number of common shares outstanding since the beginning of 2012: | ||||||
Nine Months | Year | |||||
Ended | Ended | |||||
September 30, | December 31, | |||||
2013 | 2012 | |||||
Beginning balance | 162,514,098 | 161,131,547 | ||||
Stock options/SARs exercised | 257,103 | 926,425 | ||||
Restricted stock granted | 401,122 | 354,674 | ||||
Restricted stock units vested | 118,324 | 57,824 | ||||
Treasury shares issued | 26,497 | 43,628 | ||||
Ending balance | 163,317,144 | 162,514,098 | ||||
Derivative_Activities
Derivative Activities | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Activities | (11) DERIVATIVE ACTIVITIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||
We use commodity-based derivative contracts to manage exposure to commodity price fluctuations. We do not enter into these arrangements for speculative or trading purposes. We do not utilize complex derivatives as we typically utilize commodity swaps or collars to (1) reduce the effect of price volatility of the commodities we produce and sell and (2) support our annual capital budget and expenditure plans. In 2011, we sold NGLs derivative swap contracts (“sold swaps”) for the natural gasoline (or C5) component of natural gas liquids and in 2012, we entered into purchased derivative swaps (“re-purchased swaps”) for C5 volumes. These re-purchased swaps were, in some cases, with the same counterparties as our sold swaps. We entered into these re-purchased swaps to lock in certain natural gasoline derivative gains. In second quarter 2012, we entered into NGLs derivative swap contracts for the propane (or C3) component of NGLs and in third quarter 2013, we also entered into NGLs derivative swap contracts for the normal butane (or C4) component of NGLs. The fair value of our derivative contracts, represented by the estimated amount that would be realized upon termination, based on a comparison of the contract price and a reference price, generally the New York Mercantile Exchange (“NYMEX”), approximated a net unrealized pre-tax gain of $66.0 million at September 30, 2013. These contracts expire monthly through December 2015. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table sets forth our derivative volumes by year as of September 30, 2013: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period | Contract Type | Volume Hedged | Weighted | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average Hedge Price | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural Gas | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Collars | 280,000 Mmbtu/day | $ 4.59–$ 5.05 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Collars | 447,500 Mmbtu/day | $ 3.84–$ 4.48 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | Collars | 145,000 Mmbtu/day | $ 4.07–$ 4.56 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Swaps | 293,370 Mmbtu/day | $ | 3.82 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Swaps | 30,000 Mmbtu/day | $ | 4.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | Swaps | 7,500 Mmbtu/day | $ | 4.16 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Crude Oil | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Collars | 3,000 bbls/day | $ 90.60–$ 100.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Collars | 2,000 bbls/day | $ 85.55–$ 100.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Swaps | 6,825 bbls/day | $ | 96.79 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Swaps | 7,000 bbls/day | $ | 94.14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | Swaps | 2,000 bbls day | $ | 90.20 | ||||||||||||||||||||||||||||||||||||||||||||||||||
NGLs (Natural Gasoline) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Sold Swaps | 8,000 bbls/day | $ | 89.64 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Re-purchased Swaps | 1,500 bbls/day | $ | 76.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||
NGLs (Propane) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Swaps | 11,000 bbls/day | $ | 37.87 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Swaps | 7,000 bbls/day | $ | 40.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||
NGLs (Normal butane) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Swaps | 2,000 bbls/day | $ | 55.44 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Swaps | 2,000 bbls/day | $ | 54.60 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Every derivative instrument is required to be recorded on the balance sheet as either an asset or a liability measured at its fair value. Fair value is determined based on the difference between the fixed contract price and the underlying market price at the determination date. Through February 28, 2013, changes in the fair value of our derivatives that qualified for hedge accounting were recorded as a component of AOCI in the stockholders’ equity section of the accompanying consolidated balance sheets, which is later transferred to natural gas, NGLs and oil sales when the underlying physical transaction occurs and the hedging contract is settled. As of September 30, 2013, an unrealized pre-tax derivative gain of $32.3 million ($19.7 million after tax) was recorded in AOCI. See additional discussion below regarding the discontinuance of hedge accounting. If the derivative does not qualify as a hedge or is not designated as a hedge, changes in fair value of these non-hedge derivatives are recognized in earnings in derivative fair value income or loss. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
For those derivative instruments that qualified or were designated for hedge accounting, settled transaction gains and losses are determined monthly, and are included as increases or decreases to natural gas, NGLs and oil sales in the period the hedged production is sold. Through February 28, 2013, we had elected to designate our commodity derivative instruments that qualified for hedge accounting as cash flow hedges. Natural gas, NGLs and oil sales include $27.4 million of gains in third quarter 2013 compared to gains of $61.5 million in the same period of 2012 related to settled hedging transactions. Natural gas, NGLs and oil sales include $94.4 million of gains in the first nine months 2013 compared to gains of $197.7 million in the same period of 2012. Any ineffectiveness associated with these hedge derivatives is reflected in derivative fair value income or loss in the accompanying statements of operations. The ineffective portion is generally calculated as the difference between the changes in fair value of the derivative and the estimated change in future cash flows from the item hedged. Derivative fair value (loss) income for the three months ended September 30, 2013 includes ineffective losses (unrealized and realized) of $39,000 compared to a loss of $3.7 million in the three months ended September 30, 2012. Derivative fair value (loss) income for the nine months ended September 30, 2013 includes ineffective losses (unrealized and realized) of $2.9 million compared to a loss of $1.6 million in the same period of 2012. During the nine months ended September 30, 2013, we recognized a pre-tax gain of $3.9 million in derivative fair value (loss) income as a result of the discontinuance of hedge accounting where we determined the transaction was probable not to occur primarily due to the sale of our Delaware and Permian Basin properties in New Mexico and West Texas. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinuance of Hedge Accounting | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective March 1, 2013, we elected to de-designate all commodity contracts that were previously designated as cash flow hedges and elected to discontinue hedge accounting prospectively. AOCI included $103.6 million ($63.2 million after tax) of unrealized net gains, representing the marked-to-market value of the effective portion of our cash flow hedges as of February 28, 2013. As a result of discontinuing hedge accounting, the marked-to-market values included in AOCI as of the de-designation date were frozen and will be reclassified into earnings in natural gas, NGLs and oil sales in future periods as the underlying hedged transactions occur. As of September 30, 2013, we expect to reclassify into earnings $22.1 million of unrealized net gains in the remaining months of 2013 and $10.2 million of unrealized net gains in 2014 from AOCI. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
With the election to de-designate hedging instruments, all of our derivative instruments continue to be recorded at fair value with unrealized gains and losses recognized immediately in earnings rather than in AOCI. These marked-to-market adjustments will produce a degree of earnings volatility that can be significant from period to period, but such adjustments will have no cash flow impact relative to changes in market prices. The impact to cash flow occurs upon settlement of the underlying contract. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Fair Value (Loss) Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents information about the components of derivative fair value (loss) income for the three months and the nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of derivatives that did not qualify or were not designated for hedge accounting (a) | $ | (34,219 | ) | $ | (53,646 | ) | $ | 28,350 | $ | 30,075 | ||||||||||||||||||||||||||||||||||||||||||||
Realized gain (loss) on settlement–natural gas (a) (b) | 5,815 | — | (17,913 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Realized (loss) gain on settlement–oil (a) (b) | (8,005 | ) | 1,955 | (8,218 | ) | (1,899 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Realized (loss) gain on settlement–NGLs (a) (b) | (3,907 | ) | 14,682 | (1,759 | ) | 20,442 | ||||||||||||||||||||||||||||||||||||||||||||||||
Hedge ineffectiveness | –realized | (854 | ) | 988 | (445 | ) | 3,451 | |||||||||||||||||||||||||||||||||||||||||||||||
–unrealized | 815 | (4,707 | ) | (2,485 | ) | (5,061 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Derivative fair value (loss) income | $ | (40,355 | ) | $ | (40,728 | ) | $ | (2,470 | ) | $ | 47,008 | |||||||||||||||||||||||||||||||||||||||||||
(a) Derivatives that did not qualify or were not designated for hedge accounting. Change in fair value of derivatives line also includes gains of $3.1 million in third quarter 2013 and gains of $25.5 million in the first nine months 2013 related to discontinuance of hedge accounting. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) These amounts represent the realized gains and losses on settled derivatives that did not qualify or were not designated for hedge accounting, which before settlement are included in the category in this same table referred to as change in fair value of derivatives that did not qualify or were not designated for hedge accounting. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Assets and Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The combined fair value of derivatives included in the accompanying consolidated balance sheets as of September 30, 2013 and December 31, 2012 is summarized below. The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts of | Gross Amounts | Net Amounts of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized Assets | Offset in the | Assets Presented in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas | –swaps | $ | 10,965 | $ | (2,046 | ) | $ | 8,919 | ||||||||||||||||||||||||||||||||||||||||||||||
–collars | 71,699 | (1,720 | ) | 69,979 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Crude oil | –swaps | 2,962 | (7,766 | ) | (4,804 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
–collars | 137 | (1,803 | ) | (1,666 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
NGLs | –C5 swaps | 3,374 | (1,461 | ) | 1,913 | |||||||||||||||||||||||||||||||||||||||||||||||||
–C3 swaps | 7 | (552 | ) | (545 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
–C4 swaps | 406 | (135 | ) | 271 | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 89,550 | $ | (15,483 | ) | $ | 74,067 | ||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts of | Gross Amounts | Net Amounts of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized (Liabilities) | Offset in the | (Liabilities) Presented in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative (liabilities): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas | –swaps | $ | (1,219 | ) | $ | 2,046 | $ | 827 | ||||||||||||||||||||||||||||||||||||||||||||||
–collars | (1,720 | ) | 1,720 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Crude oil | –swaps | (7,766 | ) | 7,766 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
–collars | (1,803 | ) | 1,803 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
NGLs | –C5 swaps | (9 | ) | 1,461 | 1,452 | |||||||||||||||||||||||||||||||||||||||||||||||||
–C3 swaps | (10,469 | ) | 552 | (9,917 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
–C4 swaps | (571 | ) | 135 | (436 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | (23,557 | ) | $ | 15,483 | $ | (8,074 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts of | Gross Amounts | Net Amounts of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized Assets | Offset in the | Assets Presented in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas | –swaps | $ | 10,746 | $ | (3,242 | ) | $ | 7,504 | ||||||||||||||||||||||||||||||||||||||||||||||
–collars | 128,410 | (6,155 | ) | 122,255 | ||||||||||||||||||||||||||||||||||||||||||||||||||
–basis swaps | 993 | — | 993 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Crude oil | –swaps | 9,650 | — | 9,650 | ||||||||||||||||||||||||||||||||||||||||||||||||||
–collars | 2,222 | — | 2,222 | |||||||||||||||||||||||||||||||||||||||||||||||||||
NGLs | –C5 swaps | 13,055 | (2,412 | ) | 10,643 | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 165,076 | $ | (11,809 | ) | $ | 153,267 | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts of | Gross Amounts | Net Amounts of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized (Liabilities) | Offset in the | (Liabilities) Presented in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative (liabilities): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas | –swaps | $ | (3,242 | ) | $ | (221 | ) | $ | (3,463 | ) | ||||||||||||||||||||||||||||||||||||||||||||
–collars | (9,618 | ) | 9,618 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
NGLs | –C5 swaps | (137 | ) | 2,412 | 2,275 | |||||||||||||||||||||||||||||||||||||||||||||||||
–C3 swaps | (6,746 | ) | — | (6,746 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | (19,743 | ) | $ | 11,809 | $ | (7,934 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
The table below provides data about the fair value of our derivative contracts. Derivative assets and liabilities shown below are presented as gross assets and liabilities, without regard to master netting arrangements, which are considered in the presentation of derivative assets and liabilities in the accompanying consolidated balance sheets (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | (Liabilities) | Assets | (Liabilities) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying | Carrying | Net | Carrying | Carrying | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
Value | Value | Carrying | Value | Value | Carrying | |||||||||||||||||||||||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives that qualified for cash flow hedge accounting (before discontinuance of hedge accounting): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Swaps (a) | $ | 7,091 | $ | (3,960 | ) | $ | 3,131 | $ | 22,236 | $ | (3,242 | ) | $ | 18,994 | ||||||||||||||||||||||||||||||||||||||||
Collars (a) | 38,685 | (10,356 | ) | 28,329 | 129,878 | (9,721 | ) | 120,157 | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 45,776 | $ | (14,316 | ) | $ | 31,460 | $ | 152,114 | $ | (12,963 | ) | $ | 139,151 | |||||||||||||||||||||||||||||||||||||||||
Derivatives that did not qualify or were not designated for hedge accounting: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sold swaps (a) | $ | 16,159 | $ | (23,072 | ) | $ | (6,913 | ) | $ | 7,316 | $ | (8,904 | ) | $ | (1,588 | ) | ||||||||||||||||||||||||||||||||||||||
Re-purchased swaps (a) | 1,462 | — | 1,462 | 5,920 | — | 5,920 | ||||||||||||||||||||||||||||||||||||||||||||||||
Collars (a) | 42,943 | (2,959 | ) | 39,984 | 857 | — | 857 | |||||||||||||||||||||||||||||||||||||||||||||||
Basis swaps (a) | — | — | — | 993 | — | 993 | ||||||||||||||||||||||||||||||||||||||||||||||||
$ | 60,564 | $ | (26,031 | ) | $ | 34,533 | $ | 15,086 | $ | (8,904 | ) | $ | 6,182 | |||||||||||||||||||||||||||||||||||||||||
(a) Included in unrealized derivatives in the accompanying consolidated balance sheets. See additional discussion above regarding the discontinuance of hedge accounting. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The effects of our cash flow hedges (or those derivatives that previously qualified for hedge accounting) on accumulated other comprehensive income in the accompanying consolidated balance sheets is summarized below (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Hedge | Realized Gain (Loss) | Change in Hedge | Realized Gain (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Fair Value | Reclassified from OCI | Derivative Fair Value | Reclassified from OCI | |||||||||||||||||||||||||||||||||||||||||||||||||||
into Revenue (a) | into Revenue (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Swaps | $ | — | $ | (33,311 | ) | $ | 2,765 | $ | 18,204 | $ | 125 | $ | 22,525 | $ | 14,687 | $ | 69,851 | |||||||||||||||||||||||||||||||||||||
Put options | — | (994 | ) | — | (682 | ) | — | (1,908 | ) | — | (998 | ) | ||||||||||||||||||||||||||||||||||||||||||
Collars | — | (51,344 | ) | 25,357 | 43,945 | (7,015 | ) | 32,704 | 83,630 | 128,823 | ||||||||||||||||||||||||||||||||||||||||||||
Income taxes | — | 33,403 | (10,967 | ) | (23,972 | ) | 2,687 | (21,780 | ) | (38,343 | ) | (76,805 | ) | |||||||||||||||||||||||||||||||||||||||||
$ | — | $ | (52,246 | ) | $ | 17,155 | $ | 37,495 | $ | (4,203 | ) | $ | 31,541 | $ | 59,974 | $ | 120,871 | |||||||||||||||||||||||||||||||||||||
(a) For realized gains upon derivative contract settlement, the reduction in AOCI is offset by an increase in revenues, NGLs and oil sales. For realized losses upon derivative contract settlement, the increase in AOCI is offset by a decrease in revenues. See additional discussion above regarding the discontinuance of hedge accounting. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The effects of our non-hedge derivatives (or those derivatives that do not qualify for hedge accounting) and the ineffective portion of our hedge derivatives on our consolidated statements of operations is summarized below (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in | Gain (Loss) Recognized in | Derivative Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Non‑hedge Derivatives) | Income (Ineffective Portion) | Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Swaps | $ | (48,277 | ) | $ | (45,998 | ) | $ | (39 | ) | $ | (1,556 | ) | $ | (48,316 | ) | $ | (47,554 | ) | ||||||||||||||||||||||||||||||||||||
Re-purchased swaps | 1,595 | 12,822 | — | — | 1,595 | 12,822 | ||||||||||||||||||||||||||||||||||||||||||||||||
Collars | 6,366 | (1,714 | ) | — | (2,163 | ) | 6,366 | (3,877 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Call options | — | (2,119 | ) | — | — | — | (2,119 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (40,316 | ) | $ | (37,009 | ) | $ | (39 | ) | $ | (3,719 | ) | $ | (40,355 | ) | $ | (40,728 | ) | ||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in | Gain (Loss) Recognized in | Derivative Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Non‑hedge Derivatives) | Income (Ineffective Portion) | Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Swaps | $ | (26,350 | ) | $ | 30,330 | $ | (2,034 | ) | $ | (890 | ) | $ | (28,384 | ) | $ | 29,440 | ||||||||||||||||||||||||||||||||||||||
Re-purchased swaps | 1,117 | 4,078 | — | — | 1,117 | 4,078 | ||||||||||||||||||||||||||||||||||||||||||||||||
Collars | 25,783 | 3,381 | (896 | ) | (720 | ) | 24,887 | 2,661 | ||||||||||||||||||||||||||||||||||||||||||||||
Call options | — | 10,829 | — | — | — | 10,829 | ||||||||||||||||||||||||||||||||||||||||||||||||
Basis swaps | (90 | ) | — | — | (90 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 460 | $ | 48,618 | $ | (2,930 | ) | $ | (1,610 | ) | $ | (2,470 | ) | $ | 47,008 | |||||||||||||||||||||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | (12) 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. There are three approaches for measuring the fair value of assets and liabilities: the market approach, the income approach and the cost approach, each of which includes multiple valuation techniques. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to measure fair value by converting future amounts, such as cash flows or earnings, into a single present value amount using current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace the service capacity of an asset. This is often referred to as current replacement cost. The cost approach assumes that the fair value would not exceed what it would cost a market participant to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence. | ||||||||||||||||||||||||||||||||||||||||||||
The fair value accounting standards do not prescribe which valuation technique should be used when measuring fair value and does not prioritize among the techniques. These standards establish a fair value hierarchy that prioritizes the inputs used in applying the various valuation techniques. Inputs broadly refer to the assumptions that market participants use to make pricing decisions, including assumptions about risk. Level 1 inputs are given the highest priority in the fair value hierarchy while Level 3 inputs are given the lowest priority. The three levels of the fair value hierarchy are as follows: | ||||||||||||||||||||||||||||||||||||||||||||
Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||||||||||||||||||||||||||||||||||||||||
Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. | ||||||||||||||||||||||||||||||||||||||||||||
Level 3 – Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. | ||||||||||||||||||||||||||||||||||||||||||||
Valuation techniques that maximize the use of observable inputs are favored. Assets and liabilities are classified in their entirety based on the lowest priority level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy. | ||||||||||||||||||||||||||||||||||||||||||||
Fair Values – Recurring | ||||||||||||||||||||||||||||||||||||||||||||
We use a market approach for our recurring fair value measurements and endeavor to use the best information available. The following tables present the fair value hierarchy table for assets and liabilities measured at fair value, on a recurring basis (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at September 30, 2013 using: | ||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||||||||||||||||||||
in Active | Other | Unobservable | Carrying | |||||||||||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | Value as of | |||||||||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | September 30, | |||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | 2013 | ||||||||||||||||||||||||||||||||||||||||||
Trading securities held in the deferred compensation plans | $ | 65,663 | $ | — | $ | — | $ | 65,663 | ||||||||||||||||||||||||||||||||||||
Derivatives | –swaps | — | (2,320 | ) | — | (2,320 | ) | |||||||||||||||||||||||||||||||||||||
–collars | — | 68,313 | — | 68,313 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 using: | ||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||||||||||||||||||||
in Active | Other | Unobservable | Carrying | |||||||||||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | Value as of | |||||||||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | December 31, | |||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | 2012 | ||||||||||||||||||||||||||||||||||||||||||
Trading securities held in the deferred compensation plans | $ | 57,776 | $ | — | $ | — | $ | 57,776 | ||||||||||||||||||||||||||||||||||||
Derivatives | –swaps | — | 23,326 | — | 23,326 | |||||||||||||||||||||||||||||||||||||||
–collars | — | 121,014 | — | 121,014 | ||||||||||||||||||||||||||||||||||||||||
–basis swaps | — | 993 | — | 993 | ||||||||||||||||||||||||||||||||||||||||
Our trading securities in Level 1 are exchange-traded and measured at fair value with a market approach using end of period market values. Derivatives in Level 2 are measured at fair value with a market approach using third-party pricing services, which have been corroborated with data from active markets or broker quotes. | ||||||||||||||||||||||||||||||||||||||||||||
Our trading securities held in the deferred compensation plan are accounted for using the mark-to-market accounting method and are included in other assets in the accompanying consolidated balance sheets. We elected to adopt the fair value option to simplify our accounting for the investments in our deferred compensation plan. Interest, dividends, and mark-to-market gains or losses are included in deferred compensation plan expense in the accompanying statement of operations. For third quarter 2013, interest and dividends were $111,000 and the mark-to-market adjustment was a gain of $3.2 million compared to interest and dividends of $122,000 and mark-to-market gain of $3.8 million in the same period of the prior year. For nine months ended September 30, 2013, interest and dividends were $779,000 and the mark-to-market adjustment was a gain of $3.8 million compared to interest and dividends of $279,000 and a mark-to-market gain of $5.7 million in the same period of the prior year. | ||||||||||||||||||||||||||||||||||||||||||||
Fair Values—Non-recurring | ||||||||||||||||||||||||||||||||||||||||||||
We review our long-lived assets to be held and used for impairment including proved natural gas and oil properties, whenever events or circumstances indicate the carrying value of those assets may not be recoverable. In third quarter 2013, we recognized an impairment expense of $7.0 million on certain of our oil and gas properties in South Texas due to reduction in reserves due to a failed well recompletion. Their fair value was measured using an income approach based upon internal estimates of future production levels, drilling and operating costs as well as discount rates, which are Level 3 inputs. In second quarter 2013, we evaluated certain surface property we own which included consideration of the potential sale of the assets and recognized an impairment charge of $741,000. The following table presents the fair value of these assets at September 30, 2013 measured at fair value on a non-recurring basis (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||
Fair Value | Impairment | Fair Value | Impairment | Fair Value | Impairment | Fair Value | Impairment | |||||||||||||||||||||||||||||||||||||
Natural gas and oil properties | $ | 500 | $ | 7,012 | $ | — | $ | — | $ | 500 | $ | 7,012 | $ | — | $ | — | ||||||||||||||||||||||||||||
Surface property | $ | — | $ | — | $ | 6,269 | $ | 1,281 | $ | — | $ | 741 | $ | 6,269 | $ | 1,281 | ||||||||||||||||||||||||||||
Fair Values—Reported | ||||||||||||||||||||||||||||||||||||||||||||
The following table presents the carrying amounts and the fair values of our financial instruments as of September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||
Commodity swaps and collars | $ | 74,067 | $ | 74,067 | $ | 153,267 | $ | 153,267 | ||||||||||||||||||||||||||||||||||||
Marketable securities(a) | 65,663 | 65,663 | 57,776 | 57,776 | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Commodity swaps and collars | (8,074 | ) | (8,074 | ) | (7,934 | ) | (7,934 | ) | ||||||||||||||||||||||||||||||||||||
Bank credit facility(b) | (427,000 | ) | (427,000 | ) | (739,000 | ) | (739,000 | ) | ||||||||||||||||||||||||||||||||||||
Deferred compensation plan(c) | (207,404 | ) | (204,404 | ) | (187,604 | ) | (187,604 | ) | ||||||||||||||||||||||||||||||||||||
7.25% senior subordinated notes due 2018(b) | — | — | (250,000 | ) | (262,500 | ) | ||||||||||||||||||||||||||||||||||||||
8.00% senior subordinated notes due 2019(b) | (290,170 | ) | (322,125 | ) | (289,185 | ) | (332,250 | ) | ||||||||||||||||||||||||||||||||||||
6.75% senior subordinated notes due 2020(b) | (500,000 | ) | (538,750 | ) | (500,000 | ) | (542,500 | ) | ||||||||||||||||||||||||||||||||||||
5.75% senior subordinated notes due 2021(b) | (500,000 | ) | (525,000 | ) | (500,000 | ) | (535,000 | ) | ||||||||||||||||||||||||||||||||||||
5.00% senior subordinated notes due 2022(b) | (600,000 | ) | (580,500 | ) | (600,000 | ) | (627,000 | ) | ||||||||||||||||||||||||||||||||||||
5.00% senior subordinated notes due 2023(b) | (750,000 | ) | (720,000 | ) | — | — | ||||||||||||||||||||||||||||||||||||||
(a) Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges. Refer to Note 13 for additional information. | ||||||||||||||||||||||||||||||||||||||||||||
(b) The book value of our bank debt approximates fair value because of its floating rate structure. The fair value of our senior subordinated notes is based on end of period market quotes which are Level 2 market values. Refer to Note 8 for additional information. | ||||||||||||||||||||||||||||||||||||||||||||
(c) The fair value of our deferred compensation plan is updated on the closing price on the balance sheet date which is a Level 1 market value. | ||||||||||||||||||||||||||||||||||||||||||||
Our current assets and liabilities contain financial instruments, the most significant of which are trade accounts receivable and payable. We believe the carrying values of our current assets and liabilities approximate fair value. Our fair value assessment incorporates a variety of considerations including (1) the short-term duration of the instruments and (2) our historical incurrence of and expected future insignificance of bad debt expense. Non-financial liabilities initially measured at fair value include asset retirement obligations. Refer to Note 9 for additional information. | ||||||||||||||||||||||||||||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2013, our primary concentrations of credit risk are the risks of collecting accounts receivable and the risk of counterparties’ failure to perform under derivative obligations. Most of our receivables are from a diverse group of companies, including major energy companies, pipeline companies, local distribution companies, financial institutions and end-users in various industries. Letters of credit or other appropriate security are obtained as deemed necessary to limit our risk of loss. Our allowance for uncollectible receivables was $2.5 million at September 30, 2013 and $2.4 million at December 31, 2012. As of September 30, 2013, our derivative contracts consist of swaps and collars. Our exposure to credit risk is diversified primarily among major investment grade financial institutions, the majority of which we have master netting agreements which provide for offsetting payables against receivables from separate derivative contracts. To manage counterparty risk associated with our derivatives, we select and monitor our counterparties based on our assessment of their financial strength and/or credit ratings. We may also limit the level of exposure with any single counterparty. At September 30, 2013, our derivative counterparties include fifteen financial institutions, of which all but two are secured lenders in our bank credit facility. At September 30, 2013, our net derivative assets include a net payable to the two counterparties not included in our bank credit facility of $53,000. For those counterparties that are not secured lenders in our bank credit facility or for which we do not have master netting arrangements, net derivative asset values are determined, in part, by reviewing credit default swap spreads for such counterparties. Net derivative liabilities are determined, in part, by using our market-based credit spread. None of our derivative contracts have margin requirements or collateral provisions that would require funding prior to the scheduled cash settlement date. We have also entered into the International Swaps and Derivatives Association Master Agreements (“ISDA Agreements”) with our counterparties. The terms of the ISDA Agreements provide us and our counterparties with rights of set off upon the occurrence of defined acts of default by either us or a counterparty to a derivative, whereby the party not in default may set off all derivative liabilities owed to the defaulting party against all derivative asset receivables from the defaulting party. We continue to monitor developments surrounding the derivative regulations adopted under the Dodd-Frank Wall Street Reform and Consumer Protection Act. We do not anticipate any significant changes to our hedging program as a result of this law. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Stock-Based Compensation Plans | (13) STOCK-BASED COMPENSATION PLANS | |||||||||||||||||||||
Stock-Based Awards | ||||||||||||||||||||||
Stock options represent the right to purchase shares of stock in the future at the fair value of the stock on the date of grant. Most stock options granted under our stock option plans vest over a three-year period and expire five years from the date they are granted. Beginning in 2005, we began granting SARs to reduce the dilutive impact of our equity plans. Similar to stock options, SARs represent the right to receive a payment equal to the excess of the fair market value of shares of common stock on the date the right is exercised over the value of the stock on the date of grant. All SARs granted under the 2005 Plan will be settled in shares of stock, vest over a three-year period and have a maximum term of five years from the date they are granted. Beginning in first quarter 2011, the Compensation Committee of the Board of Directors also began granting restricted stock units under our equity-based stock compensation plans. These restricted stock units, which we refer to as restricted stock Equity Awards, vest over a three-year period. All awards granted have been issued at prevailing market prices at the time of grant and the vesting of these shares is based upon an employee’s continued employment with us. | ||||||||||||||||||||||
The Compensation Committee also grants restricted stock to certain employees and non-employee directors of the Board of Directors as part of their compensation. Upon grant of these restricted shares, which we refer to as restricted stock Liability Awards, the shares generally are placed in our deferred compensation plan and, upon vesting, employees are allowed to take withdrawals either in cash or in stock. Compensation expense is recognized over the balance of the vesting period, which is typically three years for employee grants and immediate vesting for non-employee directors. All restricted stock awards are issued at prevailing market prices at the time of the grant and vesting is based upon an employee’s continued employment with us. Prior to vesting, all restricted stock awards have the right to vote such shares and receive dividends thereon. These Liability Awards are classified as a liability and are remeasured at fair value each reporting period. This mark-to-market adjustment is reported as deferred compensation plan expense in the accompanying consolidated statements of operations. | ||||||||||||||||||||||
Total Stock-Based Compensation Expense | ||||||||||||||||||||||
Stock-based compensation represents amortization of restricted stock, restricted stock units and SARs expense. Unlike the other forms of stock-based compensation, the mark-to-market adjustment of the liability related to the vested restricted stock held in our deferred compensation plans is directly tied to the change in our stock price and not directly related to the functional expenses and therefore, is not allocated to the functional categories. | ||||||||||||||||||||||
The following table details the allocation of stock-based compensation that is allocated to functional expense categories (in thousands): | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Operating expense | $ | 699 | $ | 598 | $ | 2,056 | $ | 1,647 | ||||||||||||||
Brokered natural gas and marketing expense | 531 | 452 | 1,310 | 1,313 | ||||||||||||||||||
Exploration expense | 983 | 1,126 | 3,013 | 3,048 | ||||||||||||||||||
General and administrative expense | 11,031 | 10,057 | 34,600 | 30,755 | ||||||||||||||||||
Total | $ | 13,244 | $ | 12,233 | $ | 40,979 | $ | 36,763 | ||||||||||||||
Stock and Option Plans | ||||||||||||||||||||||
We have two active equity-based stock plans, the 2005 Plan and the Director Plan. Under these plans, incentive and non-qualified stock options, SARs, restricted stock units and various other awards may be issued to non-employee directors and employees pursuant to decisions of the Compensation Committee, which is comprised of only non-employee, independent directors. Of the 2.6 million grants outstanding at September 30, 2013, all are grants relating to SARs. Information with respect to SARs activity is summarized below: | ||||||||||||||||||||||
Shares | Weighted | |||||||||||||||||||||
Average | ||||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||
Outstanding at December 31, 2012 | 3,433,362 | $ | 52.52 | |||||||||||||||||||
Granted | 470,617 | 75.82 | ||||||||||||||||||||
Exercised | (1,205,186 | ) | 53.78 | |||||||||||||||||||
Expired/forfeited | (50,974 | ) | 53.69 | |||||||||||||||||||
Outstanding at September 30, 2013 | 2,647,819 | $ | 56.00 | |||||||||||||||||||
Stock Appreciation Right Awards | ||||||||||||||||||||||
During first nine months 2013, we granted SARs to officers and non-officer employees. The weighted average grant date fair value per share of these SARs, based on our Black-Scholes-Merton assumptions, is shown below: | ||||||||||||||||||||||
Nine Months | ||||||||||||||||||||||
Ended | ||||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2013 | ||||||||||||||||||||||
Weighted average exercise price per share | $ | 75.82 | ||||||||||||||||||||
Expected annual dividends per share | 0.21 | % | ||||||||||||||||||||
Expected life in years | 3.7 | |||||||||||||||||||||
Expected volatility | 35 | % | ||||||||||||||||||||
Risk-free interest rate | 0.6 | % | ||||||||||||||||||||
Weighted average grant date fair value per share | $ | 20.20 | ||||||||||||||||||||
Restricted Stock Awards | ||||||||||||||||||||||
Equity Awards | ||||||||||||||||||||||
In first nine months 2013, we granted 394,100 restricted stock Equity Awards to employees at an average grant price of $71.13 compared to 359,700 restricted stock Equity Awards granted to employees at an average grant price of $63.37 in the same period of 2012. These awards generally vest over a three-year period. We recorded compensation expense for these Equity Awards of $14.6 million in the first nine months 2013 compared to $8.2 million in the same period of 2012. Equity Awards are not issued to employees until they are vested. Employees do not have the option to receive cash. | ||||||||||||||||||||||
Liability Awards | ||||||||||||||||||||||
In first nine months 2013, we granted 406,300 shares of restricted stock Liability Awards as compensation to employees at an average price of $75.45 with vesting generally over a three-year period and 18,300 shares were granted to non-employee directors at an average price of $77.26 with immediate vesting. In the same period of 2012, we granted 365,000 shares of Liability Awards as compensation to employees at an average price of $63.88 with vesting generally over a three-year period and 14,700 shares were granted to non-employee directors at an average price of $64.35 with immediate vesting. We recorded compensation expense for Liability Awards of $16.0 million in first nine months 2013 compared to $15.2 million in the same period of 2012. Substantially all of these awards are held in our deferred compensation plan, are classified as a liability and are remeasured at fair value each reporting period. This mark-to-market adjustment is reported as deferred compensation expense in our consolidated statements of operations (see additional discussion below). A summary of the status of our non-vested restricted stock and restricted stock units outstanding at September 30, 2013 is summarized below: | ||||||||||||||||||||||
Equity Awards | Liability Awards | |||||||||||||||||||||
Shares | Weighted | Shares | Weighted | |||||||||||||||||||
Average Grant | Average Grant | |||||||||||||||||||||
Date Fair Value | Date Fair Value | |||||||||||||||||||||
Outstanding at December 31, 2012 | 349,156 | $ | 59.08 | 423,478 | $ | 58.91 | ||||||||||||||||
Granted | 394,053 | 71.13 | 424,624 | 75.53 | ||||||||||||||||||
Vested | (235,580 | ) | 62.30 | (267,621 | ) | 62.07 | ||||||||||||||||
Forfeited | (45,589 | ) | 65.32 | (21,704 | ) | 57.31 | ||||||||||||||||
Outstanding at September 30, 2013 | 462,040 | $ | 67.11 | 558,777 | $ | 70.09 | ||||||||||||||||
Deferred Compensation Plan | ||||||||||||||||||||||
Our deferred compensation plan gives non-employee directors, officers and key employees the ability to defer all or a portion of their salaries and bonuses and invest in Range common stock or make other investments at the individual’s discretion. Range provides a partial matching contribution which vests over three years. The assets of the plans are held in a grantor trust, which we refer to as the Rabbi Trust, and are therefore available to satisfy the claims of our general creditors in the event of bankruptcy or insolvency. Our stock held in the Rabbi Trust is treated as a liability award as employees are allowed to take withdrawals from the Rabbi Trust either in cash or in Range stock. The liability for the vested portion of the stock held in the Rabbi Trust is reflected as deferred compensation liability in the accompanying consolidated balance sheets and is adjusted to fair value each reporting period by a charge or credit to deferred compensation plan expense on our consolidated statements of operations. The assets of the Rabbi Trust, other than our common stock, are invested in marketable securities and reported at their market value as other assets in the accompanying consolidated balance sheets. The deferred compensation liability reflects the vested market value of the marketable securities and Range stock held in the Rabbi Trust. Changes in the market value of the marketable securities and changes in the fair value of the deferred compensation plan liability are charged or credited to deferred compensation plan expense each quarter. We recorded mark-to-market income of $2.2 million in third quarter 2013 compared to mark-to-market loss of $20.1 million in third quarter 2012. We recorded mark-to-market loss of $33.3 million in the nine months ended September 30, 2013 compared to $21.6 million in the same period of 2012. The Rabbi Trust held 2.9 million shares (2.3 million of vested shares) of Range stock at September 30, 2013 compared to 2.7 million shares (2.3 million of vested shares) at December 31, 2012. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Supplemental Cash Flow Information | (14) SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Net cash provided from operating activities included: | |||||||||||
Income taxes (refunded) paid to taxing authorities | $ | (237 | ) | $ | 436 | ||||||
Interest paid | 129,043 | 99,828 | |||||||||
Non-cash investing and financing activities included: | |||||||||||
Asset retirement costs (removed) capitalized, net | (964 | ) | 29,695 | ||||||||
Increase in accrued capital expenditures | 32,776 | 6,605 | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies | (15) COMMITMENTS AND CONTINGENCIES |
Litigation | |
James A. Drummond and Chris Parrish v. Range Resources-Midcontinent, LLC et al.; pending in the District Court of Grady County, State of Oklahoma; Case No. CJ-2010-510 | |
As we previously disclosed, the parties successfully mediated the case in May 2013 resulting in a settlement and we executed a Stipulation and Agreement of Settlement, with an effective date of May 31, 2013, providing for a cash payment to the class in the amount of $87.5 million in settlement of all claims made by the class for the period prior to May 31, 2013. Pursuant to the settlement agreement, on June 28, 2013, we paid $87.5 million into an escrow account. On September 9, 2013, the Court approved the settlement thereby finally concluding this matter. | |
We are the subject of, or party to, a number of other pending or threatened legal actions, administrative proceedings and claims arising in the ordinary course of our business. While many of these matters involve inherent uncertainty, we believe that the amount of the liability, if any, ultimately incurred with respect to proceedings or claims will not have a material adverse effect on our consolidated financial position as a whole or on our liquidity, capital resources or future annual results of operations. We will continue to evaluate our litigation quarterly and will establish and adjust any litigation reserves as appropriate to reflect our assessment of the then current status of litigation. | |
Transportation and Gathering Contracts | |
In the nine months ended September 30, 2013, our transportation and gathering commitments increased by approximately $150.0 million over the next 10 years primarily due to increases in existing transportation and gathering contracts. |
Capitalized_Costs_and_Accumula
Capitalized Costs and Accumulated Depreciation, Depletion and Amortization | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Capitalized Costs and Accumulated Depreciation, Depletion and Amortization | (16) Capitalized Costs and Accumulated Depreciation, Depletion and Amortization (a) | |||||||||
September 30, | December 31, | |||||||||
2013 | 2012 | |||||||||
(in thousands) | ||||||||||
Natural gas and oil properties: | ||||||||||
Properties subject to depletion | $ | 7,919,627 | $ | 7,368,308 | ||||||
Unproved properties | 748,055 | 743,467 | ||||||||
Total | 8,667,682 | 8,111,775 | ||||||||
Accumulated depreciation, depletion and amortization | (2,160,378 | ) | (2,015,591 | ) | ||||||
Net capitalized costs | $ | 6,507,304 | $ | 6,096,184 | ||||||
(a) Includes capitalized asset retirement costs and the associated accumulated amortization. |
Costs_Incurred_for_Property_Ac
Costs Incurred for Property Acquisition, Exploration and Development | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Costs Incurred for Property Acquisition, Exploration and Development | (17) Costs Incurred for Property Acquisition, Exploration and Development (a) | |||||||||||
Nine | Year | |||||||||||
Months Ended | Ended | |||||||||||
September 30, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Acreage purchases | $ | 69,987 | $ | 188,843 | ||||||||
Development | 727,386 | 1,049,129 | ||||||||||
Exploration: | ||||||||||||
Drilling | 173,298 | 309,816 | ||||||||||
Expense | 47,331 | 65,758 | ||||||||||
Stock-based compensation expense | 3,013 | 4,049 | ||||||||||
Gas gathering facilities: | ||||||||||||
Development | 40,626 | 41,035 | ||||||||||
Subtotal | 1,061,641 | 1,658,630 | ||||||||||
Asset retirement obligations | (964 | ) | 57,982 | |||||||||
Total costs incurred | $ | 1,060,677 | $ | 1,716,612 | ||||||||
(a) Includes cost incurred whether capitalized or expensed. |
New_Accounting_Standards_Polic
New Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Disclosures about Offsetting Assets and Liabilities | In December 2011, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities,” requiring additional disclosures about offsetting and related arrangements. ASU 2011-11 is effective retrospectively for annual reporting periods beginning on or after January 1, 2013. Also, in January 2013, the FASB issued ASU No. 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” ASU 2013-01 revised and clarified the disclosures required by ASU No. 2011-11. We adopted these new requirements in first quarter 2013 and they did not have a material effect on our consolidated financial statements. |
Comprehensive Income | In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income.” ASU 2013-02 requires information to be disclosed about the amounts reclassified out of AOCI by component. We adopted this new requirement in first quarter 2013 and it did not have a material effect on our consolidated financial statements. |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Income Tax Expense from Continuing Operations | Income tax expense (benefit) from operations was as follows (in thousands): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Income tax expense (benefit) | $ | 11,866 | $ | (29,074 | ) | $ | 62,180 | $ | (17,910 | ) | |||||||||||||||
Effective tax rate | 38.2 | % | 35.1 | % | 41.5 | % | 30.9 | % | |||||||||||||||||
Income_Per_Common_Share_Tables
Income Per Common Share (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Computations of Basic and Diluted (Loss) Income Per Common Share | Basic income or loss per share attributable to common shareholders is computed as (1) income or loss attributable to common shareholders (2) less income allocable to participating securities (3) divided by weighted average basic shares outstanding. Diluted income or loss per share attributable to common stockholders is computed as (1) basic income or loss attributable to common shareholders (2) plus diluted adjustments to income allocable to participating securities (3) divided by weighted average diluted shares outstanding. The following tables set forth a reconciliation of income or loss attributable to common shareholders to basic income or loss attributable to common shareholders to diluted income or loss attributable to common shareholders (in thousands except per share amounts): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Net income (loss), as reported | $ | 19,178 | $ | (53,836 | ) | $ | 87,551 | $ | (39,960 | ) | ||||||||||||||||
Participating basic earnings (a) | (341 | ) | (119 | ) | (1,479 | ) | (348 | ) | ||||||||||||||||||
Basic net income (loss) attributed to common shareholders | 18,837 | (53,955 | ) | 86,072 | (40,308 | ) | ||||||||||||||||||||
Reallocation of participating earnings (a) | 1 | — | 6 | — | ||||||||||||||||||||||
Diluted net income (loss) attributed to common shareholders | $ | 18,838 | $ | (53,955 | ) | $ | 86,078 | $ | (40,308 | ) | ||||||||||||||||
Net income (loss) per common share: | ||||||||||||||||||||||||||
Basic | $ | 0.12 | $ | (0.34 | ) | $ | 0.54 | $ | (0.25 | ) | ||||||||||||||||
Diluted | $ | 0.12 | $ | (0.34 | ) | $ | 0.53 | $ | (0.25 | ) | ||||||||||||||||
(a) Restricted Stock Awards represent participating securities because they participate in nonforfeitable dividends or distributions with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Participating securities, however, do not participate in undistributed net losses. | ||||||||||||||||||||||||||
Basic Weighted Average Common Shares Outstanding to Diluted Weighted Average Common Shares Outstanding | The following table provides a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Weighted average common shares outstanding – basic | 160,500 | 159,563 | 160,398 | 159,297 | ||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||
Director and employee stock options and SARs | 874 | — | 923 | — | ||||||||||||||||||||||
Weighted average common shares outstanding – diluted | 161,374 | 159,563 | 161,321 | 159,297 | ||||||||||||||||||||||
Suspended_Exploratory_Well_Cos1
Suspended Exploratory Well Costs (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||
Suspended Exploratory Well Costs | We capitalize exploratory well costs until a determination is made that the well has either found proved reserves or that it is impaired. Capitalized exploratory well costs are presented in natural gas and oil properties in the accompanying consolidated balance sheets. If an exploratory well is determined to be impaired, the well costs are charged to exploration expense in the accompanying consolidated statements of operations. The following table reflects the changes in capitalized exploratory well costs for the nine months ended September 30, 2013 and the year ended December 31, 2012 (in thousands except for number of projects): | |||||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 57,360 | $ | 93,388 | ||||||||||||||||||||||||||||||||
Additions to capitalized exploratory well costs pending the determination of proved reserves | 61,751 | 153,250 | ||||||||||||||||||||||||||||||||||
Reclassifications to wells, facilities and equipment based on determination of proved reserves | (80,358 | ) | (184,298 | ) | ||||||||||||||||||||||||||||||||
Capitalized exploratory well costs charged to expense | (3,950 | ) | | |||||||||||||||||||||||||||||||||
Divested wells | | (4,980 | ) | |||||||||||||||||||||||||||||||||
Balance at end of period | 34,803 | 57,360 | ||||||||||||||||||||||||||||||||||
Less exploratory well costs that have been capitalized for a period of one year or less | (21,923 | ) | (45,965 | ) | ||||||||||||||||||||||||||||||||
Capitalized exploratory well costs that have been capitalized for a period greater than | $ | 12,880 | $ | 11,395 | ||||||||||||||||||||||||||||||||
one year | ||||||||||||||||||||||||||||||||||||
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year | 4 | 5 | ||||||||||||||||||||||||||||||||||
Aging of Capitalized Exploratory Well Costs Suspended More Than One Year | The following table provides an aging of capitalized exploratory well costs that have been suspended for more than one year as of September 30, 2013 (in thousands): | |||||||||||||||||||||||||||||||||||
Total | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||
Capitalized exploratory well costs that have been capitalized for more than one year | $ | 12,880 | $ | 208 | $ | 6,904 | $ | 1,289 | $ | 72 | $ | 2,884 | $ | 1,523 | ||||||||||||||||||||||
Indebtness_Tables
Indebtness (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Debt Outstanding | We had the following debt outstanding as of the dates shown below (in thousands) (bank debt interest rate at September 30, 2013 is shown parenthetically; no interest was capitalized during the three months or the nine months ended September 30, 2013 or 2012): | |||||||||
September 30, | December 31, | |||||||||
2013 | 2012 | |||||||||
Bank debt (1.9%) | $ | 427,000 | $ | 739,000 | ||||||
Senior subordinated notes: | ||||||||||
7.25% senior subordinated notes due 2018 | — | 250,000 | ||||||||
8.00% senior subordinated notes due 2019, net of $9,830 and $10,815 discount, respectively | 290,170 | 289,185 | ||||||||
6.75% senior subordinated notes due 2020 | 500,000 | 500,000 | ||||||||
5.75% senior subordinated notes due 2021 | 500,000 | 500,000 | ||||||||
5.00% senior subordinated notes due 2022 | 600,000 | 600,000 | ||||||||
5.00% senior subordinated notes due 2023 | 750,000 | — | ||||||||
Total debt | $ | 3,067,170 | $ | 2,878,185 | ||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Asset Retirement Obligations | Our asset retirement obligations primarily represent the estimated present value of the amounts we will incur to plug, abandon and remediate our producing properties at the end of their productive lives. Significant inputs used in determining such obligations include estimates of plugging and abandonment costs, estimated future inflation rates and well life. The inputs are calculated based on historical data as well as current estimated costs. A reconciliation of our liability for plugging and abandonment costs for the nine months ended September 30, 2013 is as follows (in thousands): | ||||
Nine Months | |||||
Ended | |||||
September 30, 2013 | |||||
Beginning of period | $ | 146,478 | |||
Liabilities incurred | 5,267 | ||||
Liabilities settled | (398 | ) | |||
Disposition of wells | (3,104 | ) | |||
Accretion expense | 8,011 | ||||
Change in estimate | (6,231 | ) | |||
End of period | 150,023 | ||||
Less current portion | (2,366 | ) | |||
Long-term asset retirement obligations | $ | 147,657 | |||
Capital_Stock_Tables
Capital Stock (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Capital Stock | We have authorized capital stock of 485.0 million shares which includes 475.0 million shares of common stock and 10.0 million shares of preferred stock. We currently have no preferred stock issued or outstanding. The following is a schedule of changes in the number of common shares outstanding since the beginning of 2012: | |||||
Nine Months | Year | |||||
Ended | Ended | |||||
September 30, | December 31, | |||||
2013 | 2012 | |||||
Beginning balance | 162,514,098 | 161,131,547 | ||||
Stock options/SARs exercised | 257,103 | 926,425 | ||||
Restricted stock granted | 401,122 | 354,674 | ||||
Restricted stock units vested | 118,324 | 57,824 | ||||
Treasury shares issued | 26,497 | 43,628 | ||||
Ending balance | 163,317,144 | 162,514,098 | ||||
Derivative_ActivitiesTables
Derivative Activities(Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Volumes Hedged and Average Hedge Prices | The following table sets forth our derivative volumes by year as of September 30, 2013: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Period | Contract Type | Volume Hedged | Weighted | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average Hedge Price | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural Gas | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Collars | 280,000 Mmbtu/day | $ 4.59–$ 5.05 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Collars | 447,500 Mmbtu/day | $ 3.84–$ 4.48 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | Collars | 145,000 Mmbtu/day | $ 4.07–$ 4.56 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Swaps | 293,370 Mmbtu/day | $ | 3.82 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Swaps | 30,000 Mmbtu/day | $ | 4.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | Swaps | 7,500 Mmbtu/day | $ | 4.16 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Crude Oil | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Collars | 3,000 bbls/day | $ 90.60–$ 100.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Collars | 2,000 bbls/day | $ 85.55–$ 100.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Swaps | 6,825 bbls/day | $ | 96.79 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Swaps | 7,000 bbls/day | $ | 94.14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | Swaps | 2,000 bbls day | $ | 90.20 | ||||||||||||||||||||||||||||||||||||||||||||||||||
NGLs (Natural Gasoline) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Sold Swaps | 8,000 bbls/day | $ | 89.64 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Re-purchased Swaps | 1,500 bbls/day | $ | 76.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||
NGLs (Propane) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Swaps | 11,000 bbls/day | $ | 37.87 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Swaps | 7,000 bbls/day | $ | 40.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||
NGLs (Normal butane) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Swaps | 2,000 bbls/day | $ | 55.44 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Swaps | 2,000 bbls/day | $ | 54.60 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Fair Value Income | The following table presents information about the components of derivative fair value (loss) income for the three months and the nine months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of derivatives that did not qualify or were not designated for hedge accounting (a) | $ | (34,219 | ) | $ | (53,646 | ) | $ | 28,350 | $ | 30,075 | ||||||||||||||||||||||||||||||||||||||||||||
Realized gain (loss) on settlement–natural gas (a) (b) | 5,815 | — | (17,913 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Realized (loss) gain on settlement–oil (a) (b) | (8,005 | ) | 1,955 | (8,218 | ) | (1,899 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Realized (loss) gain on settlement–NGLs (a) (b) | (3,907 | ) | 14,682 | (1,759 | ) | 20,442 | ||||||||||||||||||||||||||||||||||||||||||||||||
Hedge ineffectiveness | –realized | (854 | ) | 988 | (445 | ) | 3,451 | |||||||||||||||||||||||||||||||||||||||||||||||
–unrealized | 815 | (4,707 | ) | (2,485 | ) | (5,061 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Derivative fair value (loss) income | $ | (40,355 | ) | $ | (40,728 | ) | $ | (2,470 | ) | $ | 47,008 | |||||||||||||||||||||||||||||||||||||||||||
(a) Derivatives that did not qualify or were not designated for hedge accounting. Change in fair value of derivatives line also includes gains of $3.1 million in third quarter 2013 and gains of $25.5 million in the first nine months 2013 related to discontinuance of hedge accounting. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) These amounts represent the realized gains and losses on settled derivatives that did not qualify or were not designated for hedge accounting, which before settlement are included in the category in this same table referred to as change in fair value of derivatives that did not qualify or were not designated for hedge accounting. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Off setting Assets and Liabilities Table Text Block | The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts of | Gross Amounts | Net Amounts of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized Assets | Offset in the | Assets Presented in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas | –swaps | $ | 10,965 | $ | (2,046 | ) | $ | 8,919 | ||||||||||||||||||||||||||||||||||||||||||||||
–collars | 71,699 | (1,720 | ) | 69,979 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Crude oil | –swaps | 2,962 | (7,766 | ) | (4,804 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
–collars | 137 | (1,803 | ) | (1,666 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
NGLs | –C5 swaps | 3,374 | (1,461 | ) | 1,913 | |||||||||||||||||||||||||||||||||||||||||||||||||
–C3 swaps | 7 | (552 | ) | (545 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
–C4 swaps | 406 | (135 | ) | 271 | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 89,550 | $ | (15,483 | ) | $ | 74,067 | ||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts of | Gross Amounts | Net Amounts of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized (Liabilities) | Offset in the | (Liabilities) Presented in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative (liabilities): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas | –swaps | $ | (1,219 | ) | $ | 2,046 | $ | 827 | ||||||||||||||||||||||||||||||||||||||||||||||
–collars | (1,720 | ) | 1,720 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Crude oil | –swaps | (7,766 | ) | 7,766 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
–collars | (1,803 | ) | 1,803 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
NGLs | –C5 swaps | (9 | ) | 1,461 | 1,452 | |||||||||||||||||||||||||||||||||||||||||||||||||
–C3 swaps | (10,469 | ) | 552 | (9,917 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
–C4 swaps | (571 | ) | 135 | (436 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | (23,557 | ) | $ | 15,483 | $ | (8,074 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts of | Gross Amounts | Net Amounts of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized Assets | Offset in the | Assets Presented in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas | –swaps | $ | 10,746 | $ | (3,242 | ) | $ | 7,504 | ||||||||||||||||||||||||||||||||||||||||||||||
–collars | 128,410 | (6,155 | ) | 122,255 | ||||||||||||||||||||||||||||||||||||||||||||||||||
–basis swaps | 993 | — | 993 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Crude oil | –swaps | 9,650 | — | 9,650 | ||||||||||||||||||||||||||||||||||||||||||||||||||
–collars | 2,222 | — | 2,222 | |||||||||||||||||||||||||||||||||||||||||||||||||||
NGLs | –C5 swaps | 13,055 | (2,412 | ) | 10,643 | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 165,076 | $ | (11,809 | ) | $ | 153,267 | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts of | Gross Amounts | Net Amounts of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized (Liabilities) | Offset in the | (Liabilities) Presented in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative (liabilities): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas | –swaps | $ | (3,242 | ) | $ | (221 | ) | $ | (3,463 | ) | ||||||||||||||||||||||||||||||||||||||||||||
–collars | (9,618 | ) | 9,618 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
NGLs | –C5 swaps | (137 | ) | 2,412 | 2,275 | |||||||||||||||||||||||||||||||||||||||||||||||||
–C3 swaps | (6,746 | ) | — | (6,746 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | (19,743 | ) | $ | 11,809 | $ | (7,934 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Contracts by Consolidated Balance Sheets | The table below provides data about the fair value of our derivative contracts. Derivative assets and liabilities shown below are presented as gross assets and liabilities, without regard to master netting arrangements, which are considered in the presentation of derivative assets and liabilities in the accompanying consolidated balance sheets (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | (Liabilities) | Assets | (Liabilities) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying | Carrying | Net | Carrying | Carrying | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
Value | Value | Carrying | Value | Value | Carrying | |||||||||||||||||||||||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives that qualified for cash flow hedge accounting (before discontinuance of hedge accounting): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Swaps (a) | $ | 7,091 | $ | (3,960 | ) | $ | 3,131 | $ | 22,236 | $ | (3,242 | ) | $ | 18,994 | ||||||||||||||||||||||||||||||||||||||||
Collars (a) | 38,685 | (10,356 | ) | 28,329 | 129,878 | (9,721 | ) | 120,157 | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 45,776 | $ | (14,316 | ) | $ | 31,460 | $ | 152,114 | $ | (12,963 | ) | $ | 139,151 | |||||||||||||||||||||||||||||||||||||||||
Derivatives that did not qualify or were not designated for hedge accounting: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sold swaps (a) | $ | 16,159 | $ | (23,072 | ) | $ | (6,913 | ) | $ | 7,316 | $ | (8,904 | ) | $ | (1,588 | ) | ||||||||||||||||||||||||||||||||||||||
Re-purchased swaps (a) | 1,462 | — | 1,462 | 5,920 | — | 5,920 | ||||||||||||||||||||||||||||||||||||||||||||||||
Collars (a) | 42,943 | (2,959 | ) | 39,984 | 857 | — | 857 | |||||||||||||||||||||||||||||||||||||||||||||||
Basis swaps (a) | — | — | — | 993 | — | 993 | ||||||||||||||||||||||||||||||||||||||||||||||||
$ | 60,564 | $ | (26,031 | ) | $ | 34,533 | $ | 15,086 | $ | (8,904 | ) | $ | 6,182 | |||||||||||||||||||||||||||||||||||||||||
(a) Included in unrealized derivatives in the accompanying consolidated balance sheets. See additional discussion above regarding the discontinuance of hedge accounting. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects of Cash Flow Hedges and Other Hedges on Accumulated Other Comprehensive Income | The effects of our cash flow hedges (or those derivatives that previously qualified for hedge accounting) on accumulated other comprehensive income in the accompanying consolidated balance sheets is summarized below (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Hedge | Realized Gain (Loss) | Change in Hedge | Realized Gain (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Fair Value | Reclassified from OCI | Derivative Fair Value | Reclassified from OCI | |||||||||||||||||||||||||||||||||||||||||||||||||||
into Revenue (a) | into Revenue (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Swaps | $ | — | $ | (33,311 | ) | $ | 2,765 | $ | 18,204 | $ | 125 | $ | 22,525 | $ | 14,687 | $ | 69,851 | |||||||||||||||||||||||||||||||||||||
Put options | — | (994 | ) | — | (682 | ) | — | (1,908 | ) | — | (998 | ) | ||||||||||||||||||||||||||||||||||||||||||
Collars | — | (51,344 | ) | 25,357 | 43,945 | (7,015 | ) | 32,704 | 83,630 | 128,823 | ||||||||||||||||||||||||||||||||||||||||||||
Income taxes | — | 33,403 | (10,967 | ) | (23,972 | ) | 2,687 | (21,780 | ) | (38,343 | ) | (76,805 | ) | |||||||||||||||||||||||||||||||||||||||||
$ | — | $ | (52,246 | ) | $ | 17,155 | $ | 37,495 | $ | (4,203 | ) | $ | 31,541 | $ | 59,974 | $ | 120,871 | |||||||||||||||||||||||||||||||||||||
(a) For realized gains upon derivative contract settlement, the reduction in AOCI is offset by an increase in revenues, NGLs and oil sales. For realized losses upon derivative contract settlement, the increase in AOCI is offset by a decrease in revenues. See additional discussion above regarding the discontinuance of hedge accounting. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects of Non-Hedge Derivatives on Consolidated Statements of Operations | The effects of our non-hedge derivatives (or those derivatives that do not qualify for hedge accounting) and the ineffective portion of our hedge derivatives on our consolidated statements of operations is summarized below (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in | Gain (Loss) Recognized in | Derivative Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Non‑hedge Derivatives) | Income (Ineffective Portion) | Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Swaps | $ | (48,277 | ) | $ | (45,998 | ) | $ | (39 | ) | $ | (1,556 | ) | $ | (48,316 | ) | $ | (47,554 | ) | ||||||||||||||||||||||||||||||||||||
Re-purchased swaps | 1,595 | 12,822 | — | — | 1,595 | 12,822 | ||||||||||||||||||||||||||||||||||||||||||||||||
Collars | 6,366 | (1,714 | ) | — | (2,163 | ) | 6,366 | (3,877 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Call options | — | (2,119 | ) | — | — | — | (2,119 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (40,316 | ) | $ | (37,009 | ) | $ | (39 | ) | $ | (3,719 | ) | $ | (40,355 | ) | $ | (40,728 | ) | ||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in | Gain (Loss) Recognized in | Derivative Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Non‑hedge Derivatives) | Income (Ineffective Portion) | Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Swaps | $ | (26,350 | ) | $ | 30,330 | $ | (2,034 | ) | $ | (890 | ) | $ | (28,384 | ) | $ | 29,440 | ||||||||||||||||||||||||||||||||||||||
Re-purchased swaps | 1,117 | 4,078 | — | — | 1,117 | 4,078 | ||||||||||||||||||||||||||||||||||||||||||||||||
Collars | 25,783 | 3,381 | (896 | ) | (720 | ) | 24,887 | 2,661 | ||||||||||||||||||||||||||||||||||||||||||||||
Call options | — | 10,829 | — | — | — | 10,829 | ||||||||||||||||||||||||||||||||||||||||||||||||
Basis swaps | (90 | ) | — | — | (90 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 460 | $ | 48,618 | $ | (2,930 | ) | $ | (1,610 | ) | $ | (2,470 | ) | $ | 47,008 | |||||||||||||||||||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy Table for Assets and Liabilities Measured at Fair Value | We use a market approach for our recurring fair value measurements and endeavor to use the best information available. The following tables present the fair value hierarchy table for assets and liabilities measured at fair value, on a recurring basis (in thousands): | |||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at September 30, 2013 using: | ||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||||||||||||||||||||
in Active | Other | Unobservable | Carrying | |||||||||||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | Value as of | |||||||||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | September 30, | |||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | 2013 | ||||||||||||||||||||||||||||||||||||||||||
Trading securities held in the deferred compensation plans | $ | 65,663 | $ | — | $ | — | $ | 65,663 | ||||||||||||||||||||||||||||||||||||
Derivatives | –swaps | — | (2,320 | ) | — | (2,320 | ) | |||||||||||||||||||||||||||||||||||||
–collars | — | 68,313 | — | 68,313 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 using: | ||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||||||||||||||||||||
in Active | Other | Unobservable | Carrying | |||||||||||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | Value as of | |||||||||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | December 31, | |||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | 2012 | ||||||||||||||||||||||||||||||||||||||||||
Trading securities held in the deferred compensation plans | $ | 57,776 | $ | — | $ | — | $ | 57,776 | ||||||||||||||||||||||||||||||||||||
Derivatives | –swaps | — | 23,326 | — | 23,326 | |||||||||||||||||||||||||||||||||||||||
–collars | — | 121,014 | — | 121,014 | ||||||||||||||||||||||||||||||||||||||||
–basis swaps | — | 993 | — | 993 | ||||||||||||||||||||||||||||||||||||||||
Value of Assets Measured at Fair Value on Non Recurring Basis | We review our long-lived assets to be held and used for impairment including proved natural gas and oil properties, whenever events or circumstances indicate the carrying value of those assets may not be recoverable. In third quarter 2013, we recognized an impairment expense of $7.0 million on certain of our oil and gas properties in South Texas due to reduction in reserves due to a failed well recompletion. Their fair value was measured using an income approach based upon internal estimates of future production levels, drilling and operating costs as well as discount rates, which are Level 3 inputs. In second quarter 2013, we evaluated certain surface property we own which included consideration of the potential sale of the assets and recognized an impairment charge of $741,000. The following table presents the fair value of these assets at September 30, 2013 measured at fair value on a non-recurring basis (in thousands): | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||
Fair Value | Impairment | Fair Value | Impairment | Fair Value | Impairment | Fair Value | Impairment | |||||||||||||||||||||||||||||||||||||
Natural gas and oil properties | $ | 500 | $ | 7,012 | $ | — | $ | — | $ | 500 | $ | 7,012 | $ | — | $ | — | ||||||||||||||||||||||||||||
Surface property | $ | — | $ | — | $ | 6,269 | $ | 1,281 | $ | — | $ | 741 | $ | 6,269 | $ | 1,281 | ||||||||||||||||||||||||||||
Carrying Amounts and Fair Values of Financial Instruments | The following table presents the carrying amounts and the fair values of our financial instruments as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||
Commodity swaps and collars | $ | 74,067 | $ | 74,067 | $ | 153,267 | $ | 153,267 | ||||||||||||||||||||||||||||||||||||
Marketable securities(a) | 65,663 | 65,663 | 57,776 | 57,776 | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Commodity swaps and collars | (8,074 | ) | (8,074 | ) | (7,934 | ) | (7,934 | ) | ||||||||||||||||||||||||||||||||||||
Bank credit facility(b) | (427,000 | ) | (427,000 | ) | (739,000 | ) | (739,000 | ) | ||||||||||||||||||||||||||||||||||||
Deferred compensation plan(c) | (207,404 | ) | (204,404 | ) | (187,604 | ) | (187,604 | ) | ||||||||||||||||||||||||||||||||||||
7.25% senior subordinated notes due 2018(b) | — | — | (250,000 | ) | (262,500 | ) | ||||||||||||||||||||||||||||||||||||||
8.00% senior subordinated notes due 2019(b) | (290,170 | ) | (322,125 | ) | (289,185 | ) | (332,250 | ) | ||||||||||||||||||||||||||||||||||||
6.75% senior subordinated notes due 2020(b) | (500,000 | ) | (538,750 | ) | (500,000 | ) | (542,500 | ) | ||||||||||||||||||||||||||||||||||||
5.75% senior subordinated notes due 2021(b) | (500,000 | ) | (525,000 | ) | (500,000 | ) | (535,000 | ) | ||||||||||||||||||||||||||||||||||||
5.00% senior subordinated notes due 2022(b) | (600,000 | ) | (580,500 | ) | (600,000 | ) | (627,000 | ) | ||||||||||||||||||||||||||||||||||||
5.00% senior subordinated notes due 2023(b) | (750,000 | ) | (720,000 | ) | — | — | ||||||||||||||||||||||||||||||||||||||
(a) Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges. Refer to Note 13 for additional information. | ||||||||||||||||||||||||||||||||||||||||||||
(b) The book value of our bank debt approximates fair value because of its floating rate structure. The fair value of our senior subordinated notes is based on end of period market quotes which are Level 2 market values. Refer to Note 8 for additional information. | ||||||||||||||||||||||||||||||||||||||||||||
(c) The fair value of our deferred compensation plan is updated on the closing price on the balance sheet date which is a Level 1 market value. |
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Allocation of Stock-Based Compensation by Functional Category | The following table details the allocation of stock-based compensation that is allocated to functional expense categories (in thousands): | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Operating expense | $ | 699 | $ | 598 | $ | 2,056 | $ | 1,647 | ||||||||||||||
Brokered natural gas and marketing expense | 531 | 452 | 1,310 | 1,313 | ||||||||||||||||||
Exploration expense | 983 | 1,126 | 3,013 | 3,048 | ||||||||||||||||||
General and administrative expense | 11,031 | 10,057 | 34,600 | 30,755 | ||||||||||||||||||
Total | $ | 13,244 | $ | 12,233 | $ | 40,979 | $ | 36,763 | ||||||||||||||
Stock Option and SARs Activities | ||||||||||||||||||||||
We have two active equity-based stock plans, the 2005 Plan and the Director Plan. Under these plans, incentive and non-qualified stock options, SARs, restricted stock units and various other awards may be issued to non-employee directors and employees pursuant to decisions of the Compensation Committee, which is comprised of only non-employee, independent directors. Of the 2.6 million grants outstanding at September 30, 2013, all are grants relating to SARs. Information with respect to SARs activity is summarized below: | ||||||||||||||||||||||
Shares | Weighted | |||||||||||||||||||||
Average | ||||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||
Outstanding at December 31, 2012 | 3,433,362 | $ | 52.52 | |||||||||||||||||||
Granted | 470,617 | 75.82 | ||||||||||||||||||||
Exercised | (1,205,186 | ) | 53.78 | |||||||||||||||||||
Expired/forfeited | (50,974 | ) | 53.69 | |||||||||||||||||||
Outstanding at September 30, 2013 | 2,647,819 | $ | 56.00 | |||||||||||||||||||
Weighted Average Grant Date Fair Value of SARs | During first nine months 2013, we granted SARs to officers and non-officer employees. The weighted average grant date fair value per share of these SARs, based on our Black-Scholes-Merton assumptions, is shown below: | |||||||||||||||||||||
Nine Months | ||||||||||||||||||||||
Ended | ||||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2013 | ||||||||||||||||||||||
Weighted average exercise price per share | $ | 75.82 | ||||||||||||||||||||
Expected annual dividends per share | 0.21 | % | ||||||||||||||||||||
Expected life in years | 3.7 | |||||||||||||||||||||
Expected volatility | 35 | % | ||||||||||||||||||||
Risk-free interest rate | 0.6 | % | ||||||||||||||||||||
Weighted average grant date fair value per share | $ | 20.20 | ||||||||||||||||||||
Restricted Stock and Restricted Stock Units Outstanding | In first nine months 2013, we granted 406,300 shares of restricted stock Liability Awards as compensation to employees at an average price of $75.45 with vesting generally over a three-year period and 18,300 shares were granted to non-employee directors at an average price of $77.26 with immediate vesting. In the same period of 2012, we granted 365,000 shares of Liability Awards as compensation to employees at an average price of $63.88 with vesting generally over a three-year period and 14,700 shares were granted to non-employee directors at an average price of $64.35 with immediate vesting. We recorded compensation expense for Liability Awards of $16.0 million in first nine months 2013 compared to $15.2 million in the same period of 2012. Substantially all of these awards are held in our deferred compensation plan, are classified as a liability and are remeasured at fair value each reporting period. This mark-to-market adjustment is reported as deferred compensation expense in our consolidated statements of operations (see additional discussion below). A summary of the status of our non-vested restricted stock and restricted stock units outstanding at September 30, 2013 is summarized below: | |||||||||||||||||||||
Equity Awards | Liability Awards | |||||||||||||||||||||
Shares | Weighted | Shares | Weighted | |||||||||||||||||||
Average Grant | Average Grant | |||||||||||||||||||||
Date Fair Value | Date Fair Value | |||||||||||||||||||||
Outstanding at December 31, 2012 | 349,156 | $ | 59.08 | 423,478 | $ | 58.91 | ||||||||||||||||
Granted | 394,053 | 71.13 | 424,624 | 75.53 | ||||||||||||||||||
Vested | (235,580 | ) | 62.30 | (267,621 | ) | 62.07 | ||||||||||||||||
Forfeited | (45,589 | ) | 65.32 | (21,704 | ) | 57.31 | ||||||||||||||||
Outstanding at September 30, 2013 | 462,040 | $ | 67.11 | 558,777 | $ | 70.09 | ||||||||||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Supplemental Cash Flow Information | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Net cash provided from operating activities included: | |||||||||||
Income taxes (refunded) paid to taxing authorities | $ | (237 | ) | $ | 436 | ||||||
Interest paid | 129,043 | 99,828 | |||||||||
Non-cash investing and financing activities included: | |||||||||||
Asset retirement costs (removed) capitalized, net | (964 | ) | 29,695 | ||||||||
Increase in accrued capital expenditures | 32,776 | 6,605 | |||||||||
Capitalized_Costs_and_Accumula1
Capitalized Costs and Accumulated Depreciation, Depletion and Amortization (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Capitalized Costs and Accumulated Depreciation, Depletion and Amortization | September 30, | December 31, | ||||||||
2013 | 2012 | |||||||||
(in thousands) | ||||||||||
Natural gas and oil properties: | ||||||||||
Properties subject to depletion | $ | 7,919,627 | $ | 7,368,308 | ||||||
Unproved properties | 748,055 | 743,467 | ||||||||
Total | 8,667,682 | 8,111,775 | ||||||||
Accumulated depreciation, depletion and amortization | (2,160,378 | ) | (2,015,591 | ) | ||||||
Net capitalized costs | $ | 6,507,304 | $ | 6,096,184 | ||||||
(a) Includes capitalized asset retirement costs and the associated accumulated amortization. |
Costs_Incurred_for_Property_Ac1
Costs Incurred for Property Acquisition, Exploration and Development (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Costs Incurred for Property Acquisition, Exploration and Development | Nine | Year | ||||||||||
Months Ended | Ended | |||||||||||
September 30, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Acreage purchases | $ | 69,987 | $ | 188,843 | ||||||||
Development | 727,386 | 1,049,129 | ||||||||||
Exploration: | ||||||||||||
Drilling | 173,298 | 309,816 | ||||||||||
Expense | 47,331 | 65,758 | ||||||||||
Stock-based compensation expense | 3,013 | 4,049 | ||||||||||
Gas gathering facilities: | ||||||||||||
Development | 40,626 | 41,035 | ||||||||||
Subtotal | 1,061,641 | 1,658,630 | ||||||||||
Asset retirement obligations | (964 | ) | 57,982 | |||||||||
Total costs incurred | $ | 1,060,677 | $ | 1,716,612 | ||||||||
(a) Includes cost incurred whether capitalized or expensed. |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure - Basis of Presentation - Additional Information (Detail) [Line Items] | |||
Retroactive Impact Fee | $24.70 | ||
Period related to annual impact fee per well drilled | 15 years | ||
Unrealized loss on commodity derivative contracts | $3.10 | $25.50 |
Dispositions_Additional_Inform
Dispositions - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 6 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Feb. 26, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | |
West Texas | North Texas | Delaware and Permian Basin | Delaware and Permian Basin | Delaware and Permian Basin | Pennsylvania And West Texas | Pennsylvania And West Texas | Pennsylvania And West Texas | Marcellus Shale | Marcellus Shale | East Texas | East Texas | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||||
Agreed upon sales price of Permian Basin properties | $275,000,000 | ||||||||||||
Gain on sale of equity method investment in a drilling company | 4,400,000 | ||||||||||||
Gain (loss) on disposition of oil and gas property | 1,700,000 | 83,500,000 | 4,000,000 | 746,000 | -2,500,000 | -10,900,000 | |||||||
Gain (Loss) on disposition of other assets | -253,000 | ||||||||||||
Selling expenses for property sale | 4,200,000 | ||||||||||||
Proceeds from sale of oil and gas | 2,600,000 | 14,200,000 | 10,000,000 | 13,900,000 | 2,500,000 | 8,600,000 | |||||||
Proceeds from Sale of Other Assets | 5,300,000 | ||||||||||||
Proceeds from sale of equity method investment in a drilling company | $7,000,000 | ||||||||||||
Sale of oil and gas properties | 75.00% | ||||||||||||
Overriding royalty in the prospect minimum | 1.00% | 2.50% | |||||||||||
Overriding royalty in the prospect maximum | 5.00% | 5.00% |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense from Continuing Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $11,866 | ($29,074) | $62,180 | ($17,910) |
Effective tax rate | 38.20% | 35.10% | 41.50% | 30.90% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Statutory Tax Rate | 35.00% | 35.00% | 35.00% | 35.00% |
Income_Loss_Per_Common_Share_C
Income (Loss) Per Common Share - Computations of Basic and Diluted (Loss) Income Per Common Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net income (loss) per common share: | ||||||||
Net income (loss) | $19,178 | ($53,836) | $87,551 | ($39,960) | ||||
Participating basic earnings | -341 | [1] | -119 | [1] | -1,479 | [1] | -348 | [1] |
Basic net income (loss) attributed to common shareholders | 18,837 | -53,955 | 86,072 | -40,308 | ||||
Reallocation of participating earnings | 1 | [1] | 6 | [1] | ||||
Diluted net income (loss) attributed to common shareholders | $18,838 | ($53,955) | $86,078 | ($40,308) | ||||
Net income (loss) per common share: | ||||||||
Basic | $0.12 | ($0.34) | $0.54 | ($0.25) | ||||
Diluted | $0.12 | ($0.34) | $0.53 | ($0.25) | ||||
[1] | Restricted Stock Awards represent participating securities because they participate in nonforfeitable dividends or distributions with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Participating securities, however, do not participate in undistributed net losses. |
Income_Loss_Per_Common_Share_B
Income (Loss) Per Common Share - Basic Weighted Average Common Shares Outstanding to Diluted Weighted Average Common Shares Outstanding (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Denominator: | ||||
Basic | 160,500 | 159,563 | 160,398 | 159,297 |
Effect of dilutive securities: | ||||
Director and employee stock options and SARs | 874 | 923 | ||
Weighted average common shares outstanding – diluted | 161,374 | 159,563 | 161,321 | 159,297 |
Income_Loss_Per_Common_Share_A
Income (Loss) Per Common Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net income (loss) per common share: | ||||
Weighted Average Number of Shares, Restricted Stock Liability Awards | 2,900,000 | 3,000,000 | 2,800,000 | 2,900,000 |
Stock appreciation rights excluded from earning per share calculation | 796 | 181,000 |
Suspended_Exploratory_Well_Cos2
Suspended Exploratory Well Costs - Suspended Exploratory Well Costs (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Project | Project | |
Extractive Industries [Abstract] | ||
Balance at beginning of period | $57,360 | $93,388 |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 61,751 | 153,250 |
Reclassifications to wells, facilities and equipment based on determination of proved reserves | -80,358 | -184,298 |
Capitalized exploratory well costs charged to expense | -3,950 | |
Divested wells | -4,980 | |
Balance at end of period | 34,803 | 57,360 |
Less exploratory well costs that have been capitalized for a period of one year or less | -21,923 | -45,965 |
Capitalized exploratory well costs that have been capitalized for a period greater than one year | $12,880 | $11,395 |
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year | 4 | 5 |
Suspended_Exploratory_Well_Cos3
Suspended Exploratory Well Costs - Aging of Capitalized Exploratory Well Costs Suspended more than One Year (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 |
In Thousands, unless otherwise specified | Exploratory Well Costs Capitalized In Year Two Thousand And Thirteen | Exploratory Well Costs Capitalized In Year Two Thousand And Twelve | Exploratory Well Costs Capitalized In Year Two Thousand And Eleven | Exploratory Well Costs Capitalized In Year Two Thousand And Ten | Exploratory Well Costs Capitalized In Year Two Thousand And Nine | Exploratory Well Costs Capitalized In Year Two Thousand And Eight | ||
Projects With Exploratory Well Costs Capitalized For More Than One Year [Line Items] | ||||||||
Capitalized exploratory well costs that have been capitalized for more than one year | $12,880 | $11,395 | $208 | $6,904 | $1,289 | $72 | $2,884 | $1,523 |
Suspended_Exploratory_Well_Cos4
Suspended Exploratory Well Costs - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 |
In Thousands, unless otherwise specified | Well | East Texas | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Capitalized exploratory well costs that have been capitalized for a period greater than one year | $12,880 | $11,395 | |
Number of wells waiting on pipeline | 2 | ||
Number of wells in completion stage | 2 | ||
Number of wells not operated | 1 | ||
Sale of oil and gas properties | 75.00% |
Indebtedness_Debt_Outstanding_
Indebtedness - Debt Outstanding (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Bank debt | $427,000 | $739,000 |
Subordinated notes | 2,640,170 | 2,139,185 |
Total debt | 3,067,170 | 2,878,185 |
7.25% Senior Subordinated notes due 2018 | ||
Debt Instrument [Line Items] | ||
Subordinated notes | 250,000 | |
8.00% Senior Subordinated notes due 2019 | ||
Debt Instrument [Line Items] | ||
Subordinated notes | 290,170 | 289,185 |
6.75% Senior Subordinated notes due 2020 | ||
Debt Instrument [Line Items] | ||
Subordinated notes | 500,000 | 500,000 |
5.75% Senior Subordinated notes due 2021 | ||
Debt Instrument [Line Items] | ||
Subordinated notes | 500,000 | 500,000 |
5.00% Senior Subordinated notes due 2022 | ||
Debt Instrument [Line Items] | ||
Subordinated notes | 600,000 | 600,000 |
5.00% Senior Subordinated notes due 2023 | ||
Debt Instrument [Line Items] | ||
Subordinated notes | $750,000 |
Indebtedness_Debt_Outstanding_1
Indebtedness - Debt Outstanding (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Bank debt percentage | 1.90% | 1.90% |
7.25% Senior Subordinated notes due 2018 | ||
Debt Instrument [Line Items] | ||
Interest rate on senior subordinated notes | 7.25% | 7.25% |
8.00% Senior Subordinated notes due 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate on senior subordinated notes | 8.00% | 8.00% |
Discount on Senior Subordinated notes | 9,830 | 10,815 |
6.75% Senior Subordinated notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate on senior subordinated notes | 6.75% | 6.75% |
5.75% Senior Subordinated notes due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate on senior subordinated notes | 5.75% | 5.75% |
5.00% Senior Subordinated notes due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate on senior subordinated notes | 5.00% | 5.00% |
5.00% Senior Subordinated notes due 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate on senior subordinated notes | 5.00% | 5.00% |
Indebtedness_Additional_Inform
Indebtedness - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 30, 2013 | |
7.25% Senior Subordinated notes due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Interest capitalized during the period | $0 | $0 | $0 | $0 | ||
Announced call for redemption amount of debt | 250,000,000 | |||||
Loss on early extinguishment of debt | $12,280,000 | $12,280,000 | ||||
Debt redemption price percent of par | 103.63% | |||||
Ratio of debt to EBITDAX | 4.25 | 4.25 | ||||
Current ratio | 1 | 1 |
Indebtedness_Bank_Debt_Additio
Indebtedness - Bank Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Oct. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
CommercialBank | CommercialBank | Subsequent Event | Minimum | Maximum | Alternate Base Rate | LIBOR Rate | ||||
Debt Instrument [Line Items] | ||||||||||
Bank Credit facility, Facility amount | $1,750,000,000 | $1,750,000,000 | $1,750,000,000 | |||||||
Bank Credit facility, Borrowing base | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |||||||
Percentage holding of commercial banks, Maximum | 9.00% | 9.00% | ||||||||
Number of commercial banks included in current bank group | 28 | 28 | ||||||||
Notice period for increase in facility amount | 20 days | |||||||||
Bank debt | 427,000,000 | 427,000,000 | 739,000,000 | |||||||
Undrawn letters of credit | 84,900,000 | 84,900,000 | ||||||||
Borrowing capacity available under the facility amount | $1,200,000,000 | $1,200,000,000 | ||||||||
Maturity date of loan | 18-Feb-16 | |||||||||
Minimum range of base rate | 0.50% | 1.50% | ||||||||
Maximum range of base rate | 1.50% | 2.50% | ||||||||
Weighted average interest rate on the bank credit facility | 1.90% | 2.10% | 2.00% | 2.20% | ||||||
Annual rate of commitment fee paid on the undrawn balance | 0.35% | 0.50% | ||||||||
Commitment fee | 0.38% | |||||||||
Interest rate margin | 0.50% | 1.50% |
Indebtedness_Senior_Subordinat
Indebtedness - Senior Subordinated Notes - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
5.00% Senior Subordinated notes due 2023 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount of senior subordinated notes | $750,000,000 | |
Interest rate on senior subordinated notes | 5.00% | 5.00% |
Net proceeds from issuance of subordinated notes | 738,800,000 | |
Deferred Finance Costs | 11,200,000 | |
Aggregate principal amount of senior subordinated notes exchanged | $0 | |
5.00% Senior Subordinated notes due 2023 | Senior note redeemed in March 15, 2018 | ||
Debt Instrument [Line Items] | ||
Maximum redemption price of notes as percentage of principal amount | 102.50% | |
5.00% Senior Subordinated notes due 2023 | Senior note redeemed in March 15, 2021 | ||
Debt Instrument [Line Items] | ||
Maximum redemption price of notes as percentage of principal amount | 100.00% | |
5.00% Senior Subordinated notes due 2023 | Senior note redeemed in March 15, 2016 | ||
Debt Instrument [Line Items] | ||
Maximum redemption price of notes as percentage of principal amount | 105.00% | |
Maximum percentage of original aggregate amount of notes that can be redeemed | 35.00% | |
Minimum percentage of original aggregate principal amount of notes to remain outstanding immediately after redemption | 65.00% | |
Maximum number of days after the date of the closing of the equity offering that the redemption should occur | 60 days | |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Purchase price of senior subordinate notes as a percentage of principal | 101.00% |
Asset_Retirement_Obligations_A
Asset Retirement Obligations - Asset Retirement Obligations (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Asset Retirement Obligation [Abstract] | ||
Beginning of period | $146,478 | |
Liabilities incurred | 5,267 | |
Liabilities settled | -398 | |
Disposition of wells | -3,104 | |
Accretion expense | 8,011 | |
Change in estimate | -6,231 | |
End of period | 150,023 | |
Less current portion | -2,366 | -2,470 |
Long-term asset retirement obligations | $147,657 |
Capital_Stock_Detail
Capital Stock (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Stockholders' Equity Note [Abstract] | ||
Beginning balance | 162,514,098 | 161,131,547 |
Stock options/SARs exercised | 257,103 | 926,425 |
Restricted stock granted | 401,122 | 354,674 |
Restricted stock units vested | 118,324 | 57,824 |
Treasury shares issued | 26,497 | 43,628 |
Ending balance | 163,317,144 | 162,514,098 |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) | Sep. 30, 2013 | Dec. 31, 2012 |
Class Of Stock Disclosures [Abstract] | ||
Authorized capital stock | 485,000,000 | 485,000,000 |
Common stock, shares authorized | 475,000,000 | 475,000,000 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding |
Derivative_Activities_Derivati
Derivative Activities - Derivative Volumes Hedged and Average Hedge Prices (Detail) | Sep. 30, 2013 |
MMBTU | |
Collars | Natural Gas 2013 | |
Derivative [Line Items] | |
Volume Hedged | 280,000 |
Average floor price | 4.59 |
Average cap price | 5.05 |
Collars | Natural Gas 2014 | |
Derivative [Line Items] | |
Volume Hedged | 447,500 |
Average floor price | 3.84 |
Average cap price | 4.48 |
Collars | Natural Gas 2015 | |
Derivative [Line Items] | |
Volume Hedged | 145,000 |
Average floor price | 4.07 |
Average cap price | 4.56 |
Collars | Crude Oil 2013 | |
Derivative [Line Items] | |
Volume Hedged | 3,000 |
Average floor price | 90.6 |
Average cap price | 100 |
Collars | Crude Oil 2014 | |
Derivative [Line Items] | |
Volume Hedged | 2,000 |
Average floor price | 85.55 |
Average cap price | 100 |
Swaps | Natural Gas 2013 | |
Derivative [Line Items] | |
Volume Hedged | 293,370 |
Average hedge price | 3.82 |
Swaps | Natural Gas 2014 | |
Derivative [Line Items] | |
Volume Hedged | 30,000 |
Average hedge price | 4.17 |
Swaps | Natural Gas 2015 | |
Derivative [Line Items] | |
Volume Hedged | 7,500 |
Average hedge price | 4.16 |
Swaps | Crude Oil 2013 | |
Derivative [Line Items] | |
Volume Hedged | 6,825 |
Average hedge price | 96.79 |
Swaps | Crude Oil 2014 | |
Derivative [Line Items] | |
Volume Hedged | 7,000 |
Average hedge price | 94.14 |
Swaps | Crude Oil 2015 | |
Derivative [Line Items] | |
Volume Hedged | 2,000 |
Average hedge price | 90.2 |
Swaps | NGLs Propane 2013 | |
Derivative [Line Items] | |
Volume Hedged | 11,000 |
Average hedge price | 37.87 |
Swaps | NGLs Propane 2014 | |
Derivative [Line Items] | |
Volume Hedged | 7,000 |
Average hedge price | 40.38 |
Swaps | NGLs Butane 2013 | |
Derivative [Line Items] | |
Volume Hedged | 2,000 |
Average hedge price | 55.44 |
Swaps | NGLs Butane 2014 | |
Derivative [Line Items] | |
Volume Hedged | 2,000 |
Average hedge price | 54.6 |
Sold Swap | NGLs Natural Gasoline 2013 | |
Derivative [Line Items] | |
Volume Hedged | 8,000 |
Average hedge price | 89.64 |
Re-purchased Swaps | NGLs Natural Gasoline 2013 | |
Derivative [Line Items] | |
Volume Hedged | 1,500 |
Average hedge price | 76.3 |
Derivative_Activities_Derivati1
Derivative Activities - Derivative Fair Value Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Derivatives Fair Value [Line Items] | ||||||||
Change in fair value of derivatives that did not qualify or were not designated for hedge accounting | ($34,219) | [1] | ($53,646) | [1] | $28,350 | [1] | $30,075 | [1] |
Realized gain (loss) on settlement–natural gas | 5,815 | [1],[2] | -17,913 | [1],[2] | ||||
Realized (loss) gain on settlement–oil | -8,005 | [1],[2] | 1,955 | [1],[2] | -8,218 | [1],[2] | -1,899 | [1],[2] |
Realized (loss) gain on settlement–NGLs | -3,907 | [1],[2] | 14,682 | [1],[2] | -1,759 | [1],[2] | 20,442 | [1],[2] |
Hedge ineffectiveness-realized | -854 | 988 | -445 | 3,451 | ||||
Hedge ineffectiveness-unrealized | 815 | -4,707 | -2,485 | -5,061 | ||||
Derivative fair value (loss) income | ($40,355) | ($40,728) | ($2,470) | $47,008 | ||||
[1] | Derivatives that did not qualify or were not designated for hedge accounting. Change in fair value of derivatives line also includes gains of $3.1 million in third quarter 2013 and gains of $25.5 million in the first nine months 2013 related to discontinuance of hedge accounting. | |||||||
[2] | These amounts represent the realized gains and losses on settled derivatives that did not qualify or were not designated for hedge accounting, which before settlement are included in the category in this same table referred to as change in fair value of derivatives that did not qualify or were not designated for hedge accounting. |
Derivative_Activities_Derivati2
Derivative Activities - Derivative Fair Value Income (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Disclosure - Derivative Activities - Derivative Fair Value Income (Parenthetical) (Detail) [Line Items] | ||
Derivatives that do not qualify or are not designated for hedge accounting, related to discontinuance of hedge accounting | $3.10 | $25.50 |
Derivative_Activities_Schedule
Derivative Activities - Schedule of Additional Information Related to Master Netting Arrangements with Derivative Counterparties (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | $89,550 | $165,076 |
Gross Amounts Offset in the Balance Sheet | -15,483 | -11,809 |
Net Amounts of Assets Presented in the Balance Sheet | 74,067 | 153,267 |
Gross Amounts of Recognized (Liabilities) | -23,557 | -19,743 |
Gross Amounts Offset in the Balance Sheet | 15,483 | 11,809 |
Net Amounts of (Liabilities) Presented in the Balance Sheet | -8,074 | -7,934 |
Natural gas | Swaps | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 10,965 | 10,746 |
Gross Amounts Offset in the Balance Sheet | -2,046 | -3,242 |
Net Amounts of Assets Presented in the Balance Sheet | 8,919 | 7,504 |
Gross Amounts of Recognized (Liabilities) | -1,219 | -3,242 |
Gross Amounts Offset in the Balance Sheet | 2,046 | -221 |
Net Amounts of (Liabilities) Presented in the Balance Sheet | 827 | -3,463 |
Natural gas | Collars | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 71,699 | 128,410 |
Gross Amounts Offset in the Balance Sheet | -1,720 | -6,155 |
Net Amounts of Assets Presented in the Balance Sheet | 69,979 | 122,255 |
Gross Amounts of Recognized (Liabilities) | -1,720 | -9,618 |
Gross Amounts Offset in the Balance Sheet | 1,720 | 9,618 |
Natural gas | Basis Swap | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 993 | |
Net Amounts of Assets Presented in the Balance Sheet | 993 | |
Crude oil | Swaps | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 2,962 | 9,650 |
Gross Amounts Offset in the Balance Sheet | -7,766 | |
Net Amounts of Assets Presented in the Balance Sheet | -4,804 | 9,650 |
Gross Amounts of Recognized (Liabilities) | -7,766 | |
Gross Amounts Offset in the Balance Sheet | 7,766 | |
Crude oil | Collars | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 137 | 2,222 |
Gross Amounts Offset in the Balance Sheet | -1,803 | |
Net Amounts of Assets Presented in the Balance Sheet | -1,666 | 2,222 |
Gross Amounts of Recognized (Liabilities) | -1,803 | |
Gross Amounts Offset in the Balance Sheet | 1,803 | |
Swap NGLs (Natural Gasoline) | C5 swaps | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 3,374 | 13,055 |
Gross Amounts Offset in the Balance Sheet | -1,461 | -2,412 |
Net Amounts of Assets Presented in the Balance Sheet | 1,913 | 10,643 |
Gross Amounts of Recognized (Liabilities) | -9 | -137 |
Gross Amounts Offset in the Balance Sheet | 1,461 | 2,412 |
Net Amounts of (Liabilities) Presented in the Balance Sheet | 1,452 | 2,275 |
Swap NGLs (Natural Gasoline) | C3 swaps | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 7 | |
Gross Amounts Offset in the Balance Sheet | -552 | |
Net Amounts of Assets Presented in the Balance Sheet | -545 | |
Gross Amounts of Recognized (Liabilities) | -10,469 | -6,746 |
Gross Amounts Offset in the Balance Sheet | 552 | |
Net Amounts of (Liabilities) Presented in the Balance Sheet | -9,917 | -6,746 |
Swap NGLs (Natural Gasoline) | C4 swaps | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 406 | |
Gross Amounts Offset in the Balance Sheet | -135 | |
Net Amounts of Assets Presented in the Balance Sheet | 271 | |
Gross Amounts of Recognized (Liabilities) | -571 | |
Gross Amounts Offset in the Balance Sheet | 135 | |
Net Amounts of (Liabilities) Presented in the Balance Sheet | ($436) |
Derivative_Activities_Fair_Val
Derivative Activities - Fair Value of Derivative Contracts, by Consolidated Balance Sheets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Derivatives Fair Value [Line Items] | ||||
Assets Carrying Value | $45,776 | $152,114 | ||
Liabilities Carrying Value | -14,316 | -12,963 | ||
Net Carrying Value | 31,460 | 139,151 | ||
Assets Carrying Value | 60,564 | 15,086 | ||
Liabilities Carrying Value | -26,031 | -8,904 | ||
Net Carrying Value | 34,533 | 6,182 | ||
Swaps | ||||
Derivatives Fair Value [Line Items] | ||||
Assets Carrying Value | 7,091 | [1] | 22,236 | [1] |
Liabilities Carrying Value | -3,960 | [1] | -3,242 | [1] |
Net Carrying Value | 3,131 | [1] | 18,994 | [1] |
Collars | ||||
Derivatives Fair Value [Line Items] | ||||
Assets Carrying Value | 38,685 | [1] | 129,878 | [1] |
Liabilities Carrying Value | -10,356 | [1] | -9,721 | [1] |
Net Carrying Value | 28,329 | [1] | 120,157 | [1] |
Assets Carrying Value | 42,943 | [1] | 857 | [1] |
Liabilities Carrying Value | -2,959 | [1] | ||
Net Carrying Value | 39,984 | [1] | 857 | [1] |
Sold Swap | ||||
Derivatives Fair Value [Line Items] | ||||
Assets Carrying Value | 16,159 | [1] | 7,316 | [1] |
Liabilities Carrying Value | -23,072 | [1] | -8,904 | [1] |
Net Carrying Value | -6,913 | [1] | -1,588 | [1] |
Re-purchased swaps | ||||
Derivatives Fair Value [Line Items] | ||||
Assets Carrying Value | 1,462 | [1] | 5,920 | [1] |
Net Carrying Value | 1,462 | [1] | 5,920 | [1] |
Basis Swap | ||||
Derivatives Fair Value [Line Items] | ||||
Assets Carrying Value | 993 | [1] | ||
Net Carrying Value | $993 | [1] | ||
[1] | Included in unrealized derivatives in the accompanying consolidated balance sheets. See additional discussion above regarding the discontinuance of hedge accounting. |
Derivative_Activities_Effects_
Derivative Activities - Effects of Cash Flow Hedges and Other Hedges on Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Derivative Instruments Gain Loss [Line Items] | ||||||||
Change in unrealized deferred hedging gains, tax effect | $33,403 | $2,687 | ($21,780) | |||||
Change in unrealized deferred hedging (losses) gains, net of taxes | -52,246 | [1] | -4,203 | [1] | 31,541 | [1] | ||
Realized gain (loss) reclassified from AOCI into revenue, income taxes | -10,967 | [2] | -23,972 | [2] | -38,343 | [2] | -76,805 | [2] |
Realized gain on hedge derivative contract settlements reclassified into earnings from other comprehensive income, net of taxes | 17,155 | [2] | 37,495 | [2] | 59,974 | [2] | 120,871 | [2] |
Swaps | ||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||
Change in Hedge Derivative Fair Value | -33,311 | 125 | 22,525 | |||||
Realized Gain (Loss) Reclassified from OCI into Revenue | 2,765 | [2] | 18,204 | [2] | 14,687 | [2] | 69,851 | [2] |
Put Option | ||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||
Change in Hedge Derivative Fair Value | -994 | -1,908 | ||||||
Realized Gain (Loss) Reclassified from OCI into Revenue | -682 | [2] | -998 | [2] | ||||
Collars | ||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||
Change in Hedge Derivative Fair Value | -51,344 | -7,015 | 32,704 | |||||
Realized Gain (Loss) Reclassified from OCI into Revenue | $25,357 | [2] | $43,945 | [2] | $83,630 | [2] | $128,823 | [2] |
[1] | Amounts are net of income tax expense of $33,403 for the three months ended September 30, 2012 and income tax benefit of $21,780 for the nine months ended September 30, 2012. Amounts are net of income tax expense of $2,687 for the nine months ended September 30, 2013. | |||||||
[2] | For realized gains upon derivative contract settlement, the reduction in AOCI is offset by an increase in revenues, NGLs and oil sales. For realized losses upon derivative contract settlement, the increase in AOCI is offset by a decrease in revenues. See additional discussion above regarding the discontinuance of hedge accounting. |
Derivative_Activities_Effects_1
Derivative Activities - Effects of Non-Hedge Derivatives on Consolidated Statement of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (Loss) Recognized in Income (Non-hedge Derivatives) | ($40,316) | ($37,009) | $460 | $48,618 |
Gain (Loss) Recognized in Income (Ineffective Portion) | -39 | -3,719 | -2,930 | -1,610 |
Derivative Fair Value Income (Loss) | -40,355 | -40,728 | -2,470 | 47,008 |
Swaps | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (Loss) Recognized in Income (Non-hedge Derivatives) | -48,277 | -45,998 | -26,350 | 30,330 |
Gain (Loss) Recognized in Income (Ineffective Portion) | -39 | -1,556 | -2,034 | -890 |
Derivative Fair Value Income (Loss) | -48,316 | -47,554 | -28,384 | 29,440 |
Re-purchased swaps | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (Loss) Recognized in Income (Non-hedge Derivatives) | 1,595 | 12,822 | 1,117 | 4,078 |
Derivative Fair Value Income (Loss) | 1,595 | 12,822 | 1,117 | 4,078 |
Collars | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (Loss) Recognized in Income (Non-hedge Derivatives) | 6,366 | -1,714 | 25,783 | 3,381 |
Gain (Loss) Recognized in Income (Ineffective Portion) | -2,163 | -896 | -720 | |
Derivative Fair Value Income (Loss) | 6,366 | -3,877 | 24,887 | 2,661 |
Call Option | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (Loss) Recognized in Income (Non-hedge Derivatives) | -2,119 | 10,829 | ||
Derivative Fair Value Income (Loss) | -2,119 | 10,829 | ||
Basis Swap | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (Loss) Recognized in Income (Non-hedge Derivatives) | -90 | |||
Derivative Fair Value Income (Loss) | ($90) |
Derivative_Activities_Addition
Derivative Activities - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
2013 | 2013 | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | |||||
Derivative [Line Items] | ||||||||||
Derivative assets liabilities at fair value net | $66,000,000 | $66,000,000 | ||||||||
Unrealized pre-tax derivative gain recorded in AOCI | 32,300,000 | |||||||||
Unrealized after tax derivative gain recorded in AOCI | 19,700,000 | |||||||||
Gains (Losses) in oil and gas sales related to settled hedging transactions | 27,400,000 | 61,500,000 | 94,400,000 | 197,700,000 | ||||||
Ineffective unrealized and realized gains (losses) recognized income | 39,000 | 3,719,000 | 2,930,000 | 1,610,000 | ||||||
Unrealized net gains, reclassify into earnings | 3,900,000 | |||||||||
Accumulated other comprehensive income, unrealized net gains | 103,600,000 | |||||||||
Accumulated other comprehensive income, unrealized net gains, after tax | 63,200,000 | |||||||||
Unrealized pre-tax derivative gain expected to be reclassified into earnings | $22,100,000 | $10,200,000 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Hierarchy Table for Assets and Liabilities Measured at Fair Value (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net | $66,000 | |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities held in the deferred compensation plans | 65,663 | 57,776 |
Fair Value, Measurements, Recurring | Swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net | -2,320 | 23,326 |
Fair Value, Measurements, Recurring | Collars | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net | 68,313 | 121,014 |
Fair Value, Measurements, Recurring | Basis Swap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net | 993 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities held in the deferred compensation plans | 65,663 | 57,776 |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net | ||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Collars | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net | ||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Basis Swap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net | ||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities held in the deferred compensation plans | ||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net | -2,320 | 23,326 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Collars | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net | 68,313 | 121,014 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Basis Swap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net | 993 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities held in the deferred compensation plans | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Collars | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Basis Swap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets liabilities at fair value net |
Fair_Value_Measurements_Carryi
Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Assets | ||||
Commodity swaps and collars | $74,067 | $153,267 | ||
Liabilities | ||||
Commodity swaps and collars | 8,074 | 7,934 | ||
Bank credit facility | -427,000 | -739,000 | ||
Deferred compensation plan | -207,404 | -187,604 | ||
Subordinated debt | -2,640,170 | -2,139,185 | ||
Carrying Value | ||||
Assets | ||||
Commodity swaps and collars | 74,067 | 153,267 | ||
Marketable securities | 65,663 | [1] | 57,776 | [1] |
Liabilities | ||||
Commodity swaps and collars | -8,074 | -7,934 | ||
Bank credit facility | -427,000 | [2] | -739,000 | [2] |
Deferred compensation plan | -207,404 | [3] | -187,604 | [3] |
Fair Value | ||||
Assets | ||||
Commodity swaps and collars | 74,067 | 153,267 | ||
Marketable securities | 65,663 | [1] | 57,776 | [1] |
Liabilities | ||||
Commodity swaps and collars | -8,074 | -7,934 | ||
Bank credit facility | -427,000 | [2] | -739,000 | [2] |
Deferred compensation plan | -204,404 | [3] | -187,604 | [3] |
7.25% Senior Subordinated notes due 2018 | ||||
Liabilities | ||||
Subordinated debt | -250,000 | |||
7.25% Senior Subordinated notes due 2018 | Carrying Value | ||||
Liabilities | ||||
Subordinated debt | -250,000 | [2] | ||
7.25% Senior Subordinated notes due 2018 | Fair Value | ||||
Liabilities | ||||
Subordinated debt | -262,500 | [2] | ||
8.00% Senior Subordinated notes due 2019 | ||||
Liabilities | ||||
Subordinated debt | -290,170 | -289,185 | ||
8.00% Senior Subordinated notes due 2019 | Carrying Value | ||||
Liabilities | ||||
Subordinated debt | -290,170 | [2] | -289,185 | [2] |
8.00% Senior Subordinated notes due 2019 | Fair Value | ||||
Liabilities | ||||
Subordinated debt | -322,125 | [2] | -332,250 | [2] |
6.75% Senior Subordinated notes due 2020 | ||||
Liabilities | ||||
Subordinated debt | -500,000 | -500,000 | ||
6.75% Senior Subordinated notes due 2020 | Carrying Value | ||||
Liabilities | ||||
Subordinated debt | -500,000 | [2] | -500,000 | [2] |
6.75% Senior Subordinated notes due 2020 | Fair Value | ||||
Liabilities | ||||
Subordinated debt | -538,750 | [2] | -542,500 | [2] |
5.75% Senior Subordinated Notes due 2021 | Carrying Value | ||||
Liabilities | ||||
Subordinated debt | -500,000 | [2] | -500,000 | [2] |
5.75% Senior Subordinated Notes due 2021 | Fair Value | ||||
Liabilities | ||||
Subordinated debt | -525,000 | [2] | -535,000 | [2] |
5.00% Senior Subordinated notes due 2022 | ||||
Liabilities | ||||
Subordinated debt | -600,000 | -600,000 | ||
5.00% Senior Subordinated notes due 2022 | Carrying Value | ||||
Liabilities | ||||
Subordinated debt | -600,000 | [2] | -600,000 | [2] |
5.00% Senior Subordinated notes due 2022 | Fair Value | ||||
Liabilities | ||||
Subordinated debt | -580,500 | [2] | -627,000 | [2] |
5.00% senior subordinated notes due 2023 | Carrying Value | ||||
Liabilities | ||||
Subordinated debt | -750,000 | [2] | ||
5.00% senior subordinated notes due 2023 | Fair Value | ||||
Liabilities | ||||
Subordinated debt | ($720,000) | [2] | ||
[1] | Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges. Refer to Note 13 for additional information. | |||
[2] | The book value of our bank debt approximates fair value because of its floating rate structure. The fair value of our senior subordinated notes is based on end of period market quotes which are Level 2 market values. Refer to Note 8 for additional information. | |||
[3] | The fair value of our deferred compensation plan is updated on the closing price on the balance sheet date which is a Level 1 market value. |
Fair_Value_Measurements_Carryi1
Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments (Parenthetical) (Detail) | Sep. 30, 2013 | Dec. 31, 2012 |
7.25% Senior Subordinated notes due 2018 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate on senior subordinated notes | 7.25% | 7.25% |
8.00% Senior Subordinated notes due 2019 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate on senior subordinated notes | 8.00% | 8.00% |
6.75% Senior Subordinated notes due 2020 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate on senior subordinated notes | 6.75% | 6.75% |
5.75% Senior Subordinated Notes due 2021 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate on senior subordinated notes | 5.75% | 5.75% |
5.00% Senior Subordinated notes due 2022 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate on senior subordinated notes | 5.00% | 5.00% |
5.00% senior subordinated notes due 2023 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate on senior subordinated notes | 5.00% | 5.00% |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Company | |||||
Lenders | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Interest and dividends | $111,000 | $122,000 | $779,000 | $279,000 | |
Mark-to-market gain (loss) | 3,200,000 | 3,800,000 | 3,800,000 | 5,700,000 | |
Allowance for uncollectible receivables | 2,500,000 | 2,500,000 | 2,400,000 | ||
Number of financial institutions included in counter parties | 15 | ||||
Number of secured lenders not in banking credit facility | 2 | ||||
Net derivative asset | 53,000 | 53,000 | |||
Impairment of proved properties and other assets | 7,012,000 | 1,281,000 | 7,753,000 | 1,281,000 | |
Surface Property | Fair Value, Measurements, Nonrecurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Impairment of proved properties and other assets | 1,281,000 | 741,000 | 1,281,000 | ||
Natural Gas and Oil Properties | Fair Value, Measurements, Nonrecurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Impairment of proved properties and other assets | $7,012,000 | $7,012,000 |
Fair_Value_Measurements_Value_
Fair Value Measurements - Value of Assets Measured at Fair Value on Non Recurring Basis (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impairment | $7,012 | $1,281 | $7,753 | $1,281 |
Fair Value, Measurements, Nonrecurring | Natural Gas and Oil Properties | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fair Value | 500 | 500 | ||
Impairment | 7,012 | 7,012 | ||
Fair Value, Measurements, Nonrecurring | Surface Property | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fair Value | 6,269 | 6,269 | ||
Impairment | $1,281 | $741 | $1,281 |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans - Allocation of Stock-Based Compensation by Functional Category (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total | $13,244 | $12,233 | $40,979 | $36,763 |
Operating Expense | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total | 699 | 598 | 2,056 | 1,647 |
Brokered Natural Gas and Marketing Expense | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total | 531 | 452 | 1,310 | 1,313 |
Exploration Expense | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total | 983 | 1,126 | 3,013 | 3,048 |
General and Administrative Expense | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total | $11,031 | $10,057 | $34,600 | $30,755 |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans - SARs Activity (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Schedule Of Stock Option Activity [Line Items] | |
Beginning Balance, Shares | 3,433,362 |
Granted, Shares | 470,617 |
Exercised, Shares | -1,205,186 |
Expired/forfeited, Shares | -50,974 |
Ending Balance, Shares | 2,647,819 |
Beginning Balance, Weighted Average Exercise Price | $52.52 |
Granted, Weighted Average Exercise Price | $75.82 |
Exercised, Weighted Average Exercise Price | $53.78 |
Expired/forfeited, Weighted Average Exercise Price | $53.69 |
Ending Balance, Weighted Average Exercise Price | $56 |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans - Weighted Average Grant Date Fair Value of SARs (Detail) (Stock Appreciation Rights (SARs), USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Stock Appreciation Rights (SARs) | |
Schedule Of Weighted Average Assumptions For Fair Values Of Stock Options [Line Items] | |
Weighted average exercise price per share | $75.82 |
Expected annual dividends per share | 0.21% |
Expected life in years | 3 years 8 months 12 days |
Expected volatility | 35.00% |
Risk-free interest rate | 0.60% |
Weighted average grant date fair value per share | $20.20 |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans - Restricted Stock and Restricted Stock Units Outstanding (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Equity Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Beginning Balance | 349,156 |
Granted | 394,053 |
Vested | -235,580 |
Forfeited | -45,589 |
Outstanding, Ending Balance | 462,040 |
Outstanding, Beginning Balance | $59.08 |
Granted | $71.13 |
Vested | $62.30 |
Forfeited | $65.32 |
Outstanding, Ending Balance | $67.11 |
Liability Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Beginning Balance | 423,478 |
Granted | 424,624 |
Vested | -267,621 |
Forfeited | -21,704 |
Outstanding, Ending Balance | 558,777 |
Outstanding, Beginning Balance | $58.91 |
Granted | $75.53 |
Vested | $62.07 |
Forfeited | $57.31 |
Outstanding, Ending Balance | $70.09 |
StockBased_Compensation_Plans_5
Stock-Based Compensation Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Plans | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Expiration term of stock options | 5 years | ||||
Active equity-based stock plans | 2 | ||||
Stock-based compensation expense | $13,244,000 | $12,233,000 | $40,979,000 | $36,763,000 | |
Non-cash, Mark-to-market income (loss) related to deferred compensation plan | 2,200,000 | -20,100,000 | -33,300,000 | -21,600,000 | |
Shares held in rabbi trust total | 2,900,000 | 2,900,000 | 2,700,000 | ||
Vested shares held in rabbi trust | 2,300,000 | 2,300,000 | 2,300,000 | ||
Equity Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares granted to employees | 394,100 | 359,700 | |||
Granted | $71.13 | $63.37 | |||
Stock-based compensation expense | 14,600,000 | 8,200,000 | |||
Vesting period of shares granted to employees | three-year | three-year | |||
Liability Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $16,000,000 | $15,200,000 | |||
Vesting period of shares granted to employees | three-year | three-year | |||
Liability Awards | Employees | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted | $75.45 | $63.88 | |||
Shares granted | 406,300 | 365,000 | |||
Liability Awards | Director | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted | $77.26 | $64.35 | |||
Shares granted | 18,300 | 14,700 | |||
Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of stock option outstanding | 2,600,000 | 2,600,000 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information - Supplemental Cash Flow Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Net cash provided from operating activities included: | ||
Income taxes (refunded) paid to taxing authorities | ($237) | $436 |
Interest paid | 129,043 | 99,828 |
Non-cash investing and financing activities included: | ||
Asset retirement costs (removed) capitalized, net | -964 | 29,695 |
Increase in accrued capital expenditures | $32,776 | $6,605 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Commitments And Contingencies Disclosure [Line Items] | |
Legal Settlement for Drummond Lawsuit | $87.50 |
Transportation commitments future minimum transportation fees due nine months change | $150 |
Number of years transportation commitments future minimum transportation fees due nine months change | 10 years |
Capitalized_Costs_and_Accumula2
Capitalized Costs and Accumulated Depreciation, Depletion and Amortization - Capitalized Costs and Accumulated Depreciation, Depletion and Amortization (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Natural gas and oil properties: | ||||
Properties subject to depletion | $7,919,627 | [1] | $7,368,308 | [1] |
Unproved properties | 748,055 | [1] | 743,467 | [1] |
Total | 8,667,682 | [1] | 8,111,775 | [1] |
Accumulated depreciation, depletion and amortization | -2,160,378 | [1] | -2,015,591 | [1] |
Net capitalized costs | $6,507,304 | [1] | $6,096,184 | [1] |
[1] | Includes capitalized asset retirement costs and the associated accumulated amortization |
Costs_Incurred_for_Property_Ac2
Costs Incurred for Property Acquisition, Exploration and Development - Costs Incurred for Property Acquisition, Exploration and Development (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items] | |||||||
Acreage purchases | $69,987 | [1] | $188,843 | [1] | |||
Development | 727,386 | [1] | 1,049,129 | [1] | |||
Exploration: | |||||||
Drilling | 173,298 | [1] | 309,816 | [1] | |||
Expense | 47,331 | [1] | 65,758 | [1] | |||
Stock-based compensation expense | 13,244 | 12,233 | 40,979 | 36,763 | |||
Gas gathering facilities: | |||||||
Development | 40,626 | [1] | 41,035 | [1] | |||
Subtotal | 1,061,641 | [1] | 1,658,630 | [1] | |||
Asset retirement obligations | -964 | [1] | 57,982 | [1] | |||
Total costs incurred | 1,060,677 | [1] | 1,716,612 | [1] | |||
Exploration Expense | |||||||
Exploration: | |||||||
Stock-based compensation expense | $3,013 | [1] | $4,049 | [1] | |||
[1] | Includes cost incurred whether capitalized or expensed. |