Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | ||
Mar. 31, 2016 | Apr. 29, 2016 | Apr. 22, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SWIFT ENERGY CO | ||
Entity Central Index Key | 351,817 | ||
Document Type | 10-Q | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Mar. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q1 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 10,000,001 | 45,112,751 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Current Assets: | |||
Cash and cash equivalents | $ 17,782 | $ 29,460 | |
Accounts receivable | 18,537 | 21,704 | |
Other current assets | 4,098 | 10,683 | |
Total Current Assets | 40,417 | 61,847 | |
Property and Equipment: | |||
Property and Equipment | 6,060,121 | 6,035,757 | |
Less - Accumulated depreciation, depletion, and amortization | (5,673,015) | (5,577,854) | |
Property and Equipment, Net | 387,106 | 457,903 | |
Other Long-Term Assets | 5,751 | 5,248 | |
Total Assets | 433,274 | 524,998 | |
Current Liabilities: | |||
Accounts payable and accrued liabilities | 60,626 | 7,663 | |
Accrued capital costs | 9,676 | 0 | |
Accrued interest | 475 | 490 | |
Undistributed oil and gas revenues | 6,444 | 0 | |
Current portion of long-term debt | 339,900 | 324,900 | |
Total Current Liabilities | 417,121 | 333,053 | |
Asset Retirement Obligation | 57,614 | 56,390 | |
Other Long-Term Liabilities | 685 | 3,891 | |
Liabilities subject to compromise | 917,972 | 984,388 | |
Commitments and Contingencies | 0 | 0 | |
Stockholders' Equity: | |||
Preferred stock, $0.01 par value | 0 | 0 | |
Common stock, $0.01 par value | 450 | 448 | |
Additional paid-in capital | 777,269 | 776,358 | |
Treasury stock held, at cost | (2,495) | (2,491) | |
Retained earnings (Accumulated deficit) | (1,735,342) | (1,627,039) | |
Total Stockholders' Equity (Deficit) | (960,118) | [1] | (852,724) |
Total Liabilities and Stockholders' Equity | $ 433,274 | $ 524,998 | |
[1] | Unaudited |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Capitalized Costs, unproved property balance | $ 18,839 | $ 18,839 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 44,994,948 | 44,771,258 |
Common stock, shares outstanding | 44,752,342 | 44,591,863 |
Treasury stock shares held, at cost | 242,606 | 179,395 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Oil and gas sales | $ 34,367 | $ 67,358 |
Price-risk management and other, net | (95) | 979 |
Total Revenues | 34,272 | 68,337 |
Costs and Expenses: | ||
General and administrative, net | 8,118 | 12,556 |
Depreciation, depletion, and amortization | 17,245 | 60,698 |
Accretion of asset retirement obligation | 1,291 | 1,365 |
Lease operating cost | 12,307 | 19,034 |
Transportation and gas processing | 5,055 | 5,323 |
Severance and other taxes | 2,332 | 5,132 |
Interest expense, net | 8,066 | 18,228 |
Write-down of oil and gas properties | 77,732 | 502,569 |
Reorganization items | 10,429 | 0 |
Total Costs and Expenses | 142,575 | 624,905 |
Income (Loss) Before Income Taxes | (108,303) | (556,568) |
Provision (Benefit) for Income Taxes | 0 | (79,491) |
Net Income (Loss) | $ (108,303) | $ (477,077) |
Per Share Amounts- | ||
Earnings Per Share (Basic) | $ (2.42) | $ (10.79) |
Earnings Per Share (Diluted) | $ (2.42) | $ (10.79) |
Weighted Average Shares Outstanding - Basic | 44,672 | 44,232 |
Weighted Average Shares Outstanding - Diluted | 44,672 | 44,232 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Income Statement [Abstract] | |
Contractual Interest Expense on Senior Notes | $ 17.3 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings (Accumulated Deficit) | |
Beginning Balance at Dec. 31, 2014 | $ 794,378 | $ 444 | $ 771,972 | $ (9,855) | $ 31,817 | |
Stock issued for benefit plans | 919 | 0 | (1,714) | 7,518 | (4,885) | |
Purchase of treasury shares | (154) | 0 | 0 | (154) | 0 | |
Employee stock purchase plan | 302 | 1 | 301 | 0 | 0 | |
Issuance of restricted stock | 0 | 3 | (3) | 0 | 0 | |
Amortization of share-based compensation | 5,802 | 0 | 5,802 | 0 | 0 | |
Net Loss | (1,653,971) | 0 | 0 | 0 | (1,653,971) | |
Ending Balance at Dec. 31, 2015 | (852,724) | 448 | 776,358 | (2,491) | (1,627,039) | |
Purchase of treasury shares | (4) | 0 | 0 | (4) | 0 | |
Issuance of restricted stock | 0 | 2 | (2) | 0 | 0 | |
Amortization of share-based compensation | 913 | 0 | 913 | 0 | 0 | |
Net Loss | (108,303) | 0 | 0 | 0 | (108,303) | |
Ending Balance at Mar. 31, 2016 | [1] | $ (960,118) | $ 450 | $ 777,269 | $ (2,495) | $ (1,735,342) |
[1] | Unaudited |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Stock issued for benefit plans (shares) | 0 | 352,476 |
Purchase of treasury stock (shares) | 63,211 | 70,437 |
Employee stock purchase plan (shares) | 0 | 87,629 |
Issuance of restricted stock (shares) | 223,690 | 304,166 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ (108,303) | $ (477,077) |
Adjustments to reconcile net income to net cash provided by operating activities - | ||
Depreciation, depletion, and amortization | 17,245 | 60,698 |
Write-down of oil and gas properties | 77,732 | 502,569 |
Accretion of asset retirement obligation | 1,291 | 1,365 |
Deferred income taxes | 0 | (79,491) |
Stock-based compensation expenses | 770 | 879 |
Reorganization items (non-cash) | 5,422 | 0 |
Other Noncash Income (Expense) | 2,551 | 373 |
(Increase) Decrease in accounts receivable and other current assets | 3,167 | 7,880 |
Increase (decrease) in accounts payable and accrued liabilities | 5,185 | (9,646) |
Increase (decrease) in accrued interest | (15) | (8,320) |
Net Cash Provided by Operating Activities | 5,045 | (770) |
Cash Flows from Investing Activities: | ||
Additions to property and equipment | (36,595) | (49,173) |
Proceeds from the sale of property and equipment | 4,876 | 0 |
Net Cash Used in Investing Activities | (31,719) | (49,173) |
Cash Flows from Financing Activities: | ||
Proceeds from bank borrowings | 15,000 | 103,400 |
Payments of bank borrowings | 0 | (53,700) |
Net proceeds from issuances of common stock | 0 | 302 |
Purchase of treasury shares | (4) | (154) |
Net Cash Used in Financing Activities | 14,996 | 49,848 |
Net Increase (Decrease) in Cash and Cash Equivalents | (11,678) | (95) |
Cash and Cash Equivalents at Beginning of Period | 29,460 | 406 |
Cash and Cash Equivalents at End of Period | 17,782 | 311 |
Supplemental Disclosures of Cash Flows Information: | ||
Cash paid during period for interest, net of amounts capitalized | 4,793 | 25,979 |
Cash paid for reorganization items | $ 5,007 | $ 0 |
Chapter 11 Proceedings Chapter
Chapter 11 Proceedings Chapter 11 Proceedings (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Reorganizations [Abstract] | |
Chapter 11 Proceedings | (1A) Chapter 11 Proceedings On December 31, 2015 , Swift Energy Company ("Swift Energy," the "Company" or "we") and eight of its U.S. subsidiaries (the “Chapter 11 Subsidiaries”) filed voluntary petitions seeking relief under Chapter 11 of Title 11 of the U.S. Bankruptcy Code (the "Bankruptcy Code") in the U.S. Bankruptcy Court for the District of Delaware under the caption In re Swift Energy Company, et al (Case No. 15-12670). The Company and the Chapter 11 Subsidiaries received bankruptcy court confirmation of their joint plan of reorganization on March 31, 2016, and subsequently emerged from bankruptcy on April 22, 2016. Although the Company is no longer a debtor-in-possession, the Company was a debtor-in-possession for the entire quarter ended March 31, 2016. As such, certain aspects of the bankruptcy proceedings of the Company and related matters are described below in order to provide context and explain part of our financial condition and results of operations for the period presented. Effect of the Bankruptcy Proceedings. During the bankruptcy proceedings, the Company conducted normal business activities and was authorized to pay and has paid (subject to caps applicable to payments of certain pre-petition obligations) pre-petition employee wages and benefits, pre-petition amounts owed to certain lienholders and critical vendors, pre-petition amounts owed to pipeline owners that transport the Company's production, and funds belonging to third parties, including royalty holders and partners. In addition, subject to certain specific exceptions under the Bankruptcy Code, the Chapter 11 filings automatically stayed most judicial or administrative actions against the Company and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. As a result, we did not record interest expense on the Company’s senior notes for the three months ended March 31, 2016 . For that period, contractual interest on the senior notes totaled $17.3 million . Plan of Reorganization . Pursuant to the plan of reorganization that the bankruptcy court confirmed, the significant transactions that occurred upon emergence from bankruptcy were as follows: • the approximately $906 million of indebtedness outstanding on account of the Company’s senior notes and certain other unsecured claims were exchanged for 88.5% of the post-emergence Company’s common stock; • the lenders under the DIP Credit Agreement (as defined under and more fully described below) received a backstop fee consisting of 7.5% of the post-emergence Company’s common stock; • the Company drew down the entire $75.0 million available under the DIP Credit Agreement, and the DIP Credit Agreement was converted into the Company’s post-emergence common stock; • the Company’s pre-petition common stock was canceled and the current shareholders received the remaining 4% of the post-emergence Company’s common stock and warrants for up to 30% of the reorganized Company's equity; • claims of other creditors were paid in full in cash, reinstated or otherwise treated in a manner acceptable to the creditors; • the Company entered into a registration rights agreement to provide customary registration rights to certain holders of the Company’s post-emergence common stock that, together with their affiliates received upon emergence 5% or more of the outstanding common stock of the Company; • the Company sold (effective April 15, 2016) a portion of its interest in its Central Louisiana fields known as Burr Ferry and South Bearhead Creek to Texegy LLC, for net proceedings of approximately $46.9 million including deposits received prior to the closing date; and • the Company's previous credit facility (the "Existing First Lien Credit Facility) was terminated and a new $320 million senior secured credit facility (the "New Credit Facility") was established. For more information refer to Note 5 of these condensed consolidated financial statements. In accordance with the plan of reorganization, the post-emergence Company’s new board of directors is made up of seven directors consisting of the Chief Executive Officer of the post-emergence Company (Terry E. Swift), two directors appointed by Strategic Value Partners LLC ("SVP") (Peter Kirchof and David Geenberg), a former holder of the Company’s senior notes, two directors appointed by other former holders of the Company’s senior notes (Gabriel Ellisor and Charles Wampler), one independent director (Michael Duginski) and one vacancy (who will be the new non-executive chairman of the Board). In addition, pursuant to the plan of reorganization, SVP and the other former holders of the Company’s senior notes were given certain continuing nomination rights subject to conditions on share ownership. DIP Credit Agreement. In connection with the pre-petition negotiations of the restructuring support agreement, certain holders of the Company’s senior notes agreed to provide the Company and the Chapter 11 Subsidiaries a debtor-in-possession credit facility (the “DIP Credit Agreement"). The DIP Credit Agreement provided for a multi-draw term loan of up to $75.0 million , which became available to the Company upon the satisfaction of certain milestones and contingencies. Upon emergence from bankruptcy, the Company had drawn down the entire $75.0 million available. Pursuant to the plan of reorganization, the DIP Credit Agreement, at the option of the lenders, converted into the post-emergence Company’s common stock, which was part of the 88.5% of the common stock distributed to the current holders of the senior notes and certain unsecured creditors. As such, the $75.0 million borrowed under the DIP Credit Agreement was not required to be repaid and terminated upon the Company’s exit from bankruptcy. For more information refer to Note 5 of these condensed consolidated financial statements. Fresh Start Accounting . In connection with the Company’s emergence from bankruptcy, we will be required to apply fresh start accounting to our financial statements because (i) the holders of existing voting shares of the Company prior to its emergence received less than 50% of the voting shares of the Company outstanding following its emergence from bankruptcy and (ii) the reorganization value of our assets immediately prior to confirmation of the plan of reorganization was less than the post-petition liabilities and allowed claims. Fresh start accounting will be applied to the Company’s consolidated financial statements as of April 22, 2016, the date on which we emerged from bankruptcy. Under the principles of fresh start accounting, a new reporting entity was considered to be created, and, as a result, the Company will allocate the reorganization value of the Company to its individual assets based on their estimated fair values. As a result of the application of fresh start accounting and the effects of the implementation of the plan of reorganization, the financial statements on or after April 22, 2016 will not be comparable with the financial statements prior to that date. Financial Statement Classification of Liabilities Subject to Compromise . Our financial statements include amounts classified as Liabilities subject to compromise, which represent liabilities that have been allowed, or that we anticipate will be allowed, as claims in our bankruptcy case. As previously referenced, resolution of certain of these claims have and will extend beyond the date we exited bankruptcy. These balances include amounts related to the anticipated rejection of various executory contracts and unexpired leases. Because the uncertain nature of many of the potential claims has not been determined at this time, the magnitude of such claims is not reasonably estimable at this time. Such claims may be material. The following table summarizes the components of liabilities subject to compromise included on our condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 December 31, 2015 Accounts payable and accrued liabilities $ 2,607 $ 55,587 Accrued capital costs 1,611 7,225 Undistributed oil and gas revenues 1,881 11,989 Senior notes and accrued interest 905,629 905,629 Other long-term liabilities 6,244 3,958 Liabilities subject to compromise $ 917,972 $ 984,388 Excluding the Senior notes and accrued interest on the Senior notes, Liabilities Subject to Compromise decreased during the first quarter of 2016 as payments were made during the quarter in accordance with orders issued by the bankruptcy court and also in connection with the Court's confirmation of the Company's joint plan of reorganization on March 31, 2016, which resulted in most creditors' claims being reclassified out of Liabilities subject to compromise. Reorganization Items. The Company and the Chapter 11 Subsidiaries have incurred significant one-time costs associated with the reorganization, principally professional fees. The amount of these costs, which are being expensed as incurred, significantly affect our results of operations. The following table summarizes the components included in Reorganization items in our condensed consolidated statements of operations for the three months ended March 31, 2016 (in thousands): March 31, 2016 Reorganization legal and professional fees and expenses $ 13,553 Reorganization pre-petition accounts payable settlements (3,124 ) Reorganization items $ 10,429 |
General Information
General Information | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Information | (1) General Information The condensed consolidated financial statements included herein have been prepared by the Company and reflect necessary adjustments, all of which were of a recurring nature unless otherwise disclosed herein, and are in the opinion of our management necessary for a fair presentation. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission. We believe that the disclosures presented are adequate to allow the information presented not to be misleading. The condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 as filed with the Securities and Exchange Commission on March 4, 2016. Our independent registered public accounting firm expressed their audit opinion dated March 4, 2016 on such financial statements with a going concern uncertainty explanatory paragraph. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Principles of Consolidation . The accompanying condensed consolidated financial statements include the accounts of Swift Energy and its wholly owned subsidiaries, which are engaged in the exploration, development, acquisition, and operation of oil and gas properties, with a focus on inland waters and onshore oil and natural gas reserves in Louisiana and Texas. Our undivided interests in oil and gas properties are accounted for using the proportionate consolidation method, whereby our proportionate share of each entity’s assets, liabilities, revenues, and expenses are included in the appropriate classifications in the accompanying condensed consolidated financial statements. Intercompany balances and transactions have been eliminated in preparing the accompanying condensed consolidated financial statements. Subsequent Events . We have evaluated subsequent events of our condensed consolidated financial statements. On April 15, 2016, we closed our transaction with Texegy LLC for the sale of a 75% working interest share of the Company's holdings in the South Bearhead Creek and Burr Ferry field areas located in Central Louisiana. The net proceeds of $46.9 million received by the Company in this transaction, including deposits received prior to the closing date, were used primarily to reduce the amount of borrowings under the Company’s prior Second Amended and Restated Credit Agreement, dated as of September 21, 2010 (the “Existing First Lien Credit Agreement”), and for other general corporate purposes. On April 22, 2016, the Effective Date, the company completed its financial restructuring and emerged from Chapter 11 bankruptcy proceedings after completing all required actions and satisfying the remaining conditions to its Plan of Reorganization, which was confirmed by the US Bankruptcy Court for the District of Delaware by order dated March 31, 2016. See Note 1A of these condensed consolidated financial statements for more information regarding the Company's emergence from bankruptcy. We cannot currently estimate the financial effect of the Company's emergence from bankruptcy on our financial statements, although we expect to record material adjustments related to our plan of reorganization and also due to the application of fresh start accounting guidance upon emergence. There were no other material subsequent events requiring additional disclosure in these financial statements. Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the reported amounts of certain revenues and expenses during each reporting period. We believe our estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates and assumptions underlying these financial statements include: • the estimated quantities of proved oil and natural gas reserves used to compute depletion of oil and natural gas properties, the related present value of estimated future net cash flows there-from, and the ceiling test impairment calculation, • estimates related to the collectability of accounts receivable and the credit worthiness of our customers, • estimates of the counterparty bank risk related to letters of credit that our customers may have issued on our behalf, • estimates of future costs to develop and produce reserves, • accruals related to oil and gas sales, capital expenditures and lease operating expenses, • estimates of insurance recoveries related to property damage, and the solvency of insurance providers, • estimates in the calculation of share-based compensation expense, • estimates of our ownership in properties prior to final division of interest determination, • the estimated future cost and timing of asset retirement obligations, • estimates made in our income tax calculations, • estimates of the liabilities subject to compromise versus not subject to compromise, • estimates in the calculation of the fair value of hedging assets and liabilities, and • estimates in the assessment of current litigation claims against the Company. While we are not aware of any material revisions to any of our estimates, there will likely be future revisions to our estimates resulting from matters such as new accounting pronouncements, changes in ownership interests, payouts, joint venture audits, re-allocations by purchasers or pipelines, or other corrections and adjustments common in the oil and gas industry, many of which require retroactive application. These types of adjustments cannot be currently estimated and will be recorded in the period during which the adjustments occur. We are subject to legal proceedings, claims, liabilities and environmental matters that arise in the ordinary course of business. We accrue for losses when such losses are considered probable and the amounts can be reasonably estimated. Property and Equipment. We follow the “full-cost” method of accounting for oil and natural gas property and equipment costs. Under this method of accounting, all productive and nonproductive costs incurred in the exploration, development, and acquisition of oil and natural gas reserves are capitalized. Such costs may be incurred both prior to and after the acquisition of a property and include lease acquisitions, geological and geophysical services, drilling, completion, and equipment. Internal costs incurred that are directly identified with exploration, development, and acquisition activities undertaken by us for our own account, and which are not related to production, general corporate overhead, or similar activities, are also capitalized. For the three months ended March 31, 2016 and 2015 , such internal costs capitalized totaled $2.5 million and $3.7 million , respectively. Interest costs are also capitalized to unproved oil and natural gas properties (refer to Note 5 of these condensed consolidated financial statements for further discussion on capitalized interest costs). The “Property and Equipment” balances on the accompanying condensed consolidated balance sheets are summarized for presentation purposes. The following is a detailed breakout of our “Property and Equipment” balances (in thousands): March 31, December 31, Property and Equipment Proved oil and gas properties $ 5,997,030 $ 5,972,666 Unproved oil and gas properties 18,839 18,839 Furniture, fixtures, and other equipment 44,252 44,252 Less – Accumulated depreciation, depletion, and amortization (5,673,015 ) (5,577,854 ) Property and Equipment, Net $ 387,106 $ 457,903 No gains or losses are recognized upon the sale or disposition of oil and natural gas properties, except in transactions involving a significant amount of reserves or where the proceeds from the sale of oil and natural gas properties would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a cost center. Internal costs associated with selling properties are expensed as incurred. Future development costs are estimated on a property-by-property basis based on current economic conditions and are amortized to expense as our capitalized oil and gas property costs are amortized. We compute the provision for depreciation, depletion, and amortization (“DD&A”) of oil and natural gas properties using the unit-of-production method. Under this method, we compute the provision by multiplying the total unamortized costs of oil and gas properties-including future development costs, gas processing facilities, and both capitalized asset retirement obligations and undiscounted abandonment costs of wells to be drilled, net of salvage values, but excluding costs of unproved properties-by an overall rate determined by dividing the physical units of oil and natural gas produced (which excludes natural gas consumed in operations) during the period by the total estimated units of proved oil and natural gas reserves (which excludes natural gas consumed in operations) at the beginning of the period. This calculation is done on a country-by-country basis and the period over which we will amortize these properties is dependent on our production from these properties in future years. Furniture, fixtures, and other equipment are recorded at cost and are depreciated by the straight-line method at rates based on the estimated useful lives of the property, which range between two and 20 years. Repairs and maintenance are charged to expense as incurred. Geological and geophysical (“G&G”) costs incurred on developed properties are recorded in “Proved properties” and therefore subject to amortization. G&G costs incurred that are directly associated with specific unproved properties are capitalized in “Unproved properties” and evaluated as part of the total capitalized costs associated with a prospect. The cost of unproved properties not being amortized is assessed quarterly, on a property-by-property basis, to determine whether such properties have been impaired. In determining whether such costs should be impaired, we evaluate current drilling results, lease expiration dates, current oil and gas industry conditions, international economic conditions, capital availability, and available geological and geophysical information. Any impairment assessed is added to the cost of proved properties being amortized. Full-Cost Ceiling Test . At the end of each quarterly reporting period, the unamortized cost of oil and natural gas properties (including natural gas processing facilities, capitalized asset retirement obligations, net of related salvage values and deferred income taxes, and excluding the recognized asset retirement obligation liability) is limited to the sum of the estimated future net revenues from proved properties (excluding cash outflows from recognized asset retirement obligations, including future development and abandonment costs of wells to be drilled, using the preceding 12-months’ average price based on closing prices on the first day of each month, adjusted for price differentials, discounted at 10% , and the lower of cost or fair value of unproved properties) adjusted for related income tax effects (“Ceiling Test”). The calculations of the Ceiling Test and provision for DD&A are based on estimates of proved reserves. There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting the future rates of production, timing, and plan of development. The accuracy of any reserves estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing, and production subsequent to the date of the estimate may justify revision of such estimates. Accordingly, reserves estimates are often different from the quantities of oil and natural gas that are ultimately recovered. Principally due to the effects of pricing, and also due to the timing of projects and changes in our reserves product mix, for the three months ended March 31, 2016 and 2015 , we reported a non-cash impairment write-down, on a before-tax basis, of $77.7 million and $502.6 million , respectively, on our oil and natural gas properties. If future capital expenditures out pace future discounted net cash flows in our reserve calculations, if we have significant declines in our oil and natural gas reserves volumes (which also reduces our estimate of discounted future net cash flows from proved oil and natural gas reserves) or if oil or natural gas prices decline or remain at levels prevalent in the current period, it is likely that non-cash write-downs of our oil and natural gas properties will occur in the future. We cannot control and cannot predict what future prices for oil and natural gas will be, thus we cannot estimate the amount or timing of any potential future non-cash write-down of our oil and natural gas properties due to decreases in oil or natural gas prices. However, due to current trends in commodity pricing it is possible that we will record additional ceiling test write-downs in future periods. Revenue Recognition . Oil and gas revenues are recognized when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred, and if collectability of the revenue is probable. Swift Energy uses the entitlement method of accounting in which we recognize our ownership interest in production as revenue. If our sales exceed our ownership share of production, the natural gas balancing payables are reported in “Accounts payable and accrued liabilities” on the accompanying condensed consolidated balance sheets. Natural gas balancing receivables are reported in “Other current assets” on the accompanying condensed consolidated balance sheets when our ownership share of production exceeds sales. As of March 31, 2016 and December 31, 2015 , we did not have any material natural gas imbalances. Accounts Receivable. We assess the collectability of accounts receivable, and based on our judgment, we accrue a reserve when we believe a receivable may not be collected. At March 31, 2016 and December 31, 2015 , we had an allowance for doubtful accounts of approximately $0.1 million . The allowance for doubtful accounts has been deducted from the total “Accounts receivable” balance on the accompanying condensed consolidated balance sheets. At March 31, 2016 , our “Accounts receivable” balance included $11.6 million for oil and gas sales, $2.9 million for joint interest owners, $1.9 million for severance tax credit receivables and $2.1 million for other receivables. At December 31, 2015 , our “Accounts receivable” balance included $14.9 million for oil and gas sales, $4.9 million for joint interest owners, $1.2 million for severance tax credit receivables and $0.7 million for other receivables. Supervision Fees. Consistent with industry practice, we charge a supervision fee to the wells we operate, including our wells, in which we own up to a 100% working interest. Supervision fees are recorded as a reduction to “General and administrative, net”, on the accompanying condensed consolidated statements of operations. Our supervision fees are allocated to each well based on general and administrative costs incurred for well maintenance and support. The amount of supervision fees charged for the three months ended March 31, 2016 and 2015 did not exceed our actual costs incurred. The total amount of supervision fees charged to the wells we operated were $2.0 million and $2.7 million for the three months ended March 31, 2016 and 2015 . Other Current Assets. Included in "Other current assets" on the accompanying condensed consolidated balance sheets are inventories which consist primarily of tubulars and other equipment and supplies that we expect to place in service in production operations. Our inventories are recorded at cost (weighted average method) and totaled $0.4 million at March 31, 2016 and $0.6 million at December 31, 2015 . Also included in "Other current assets" on the accompanying condensed consolidated balance sheets are prepaid expenses totaling $3.5 million and $4.4 million at March 31, 2016 and December 31, 2015 , respectively. These prepaid amounts cover well insurance, drilling contracts and various other prepaid expenses. Income Taxes. Under guidance contained in FASB ASC 740-10, deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities, given the provisions of the enacted tax laws. We follow the recognition and disclosure provisions under guidance contained in FASB ASC 740-10-25. Under this guidance, tax positions are evaluated for recognition using a more-likely-than-not threshold, and those tax positions requiring recognition are measured as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our policy is to record interest and penalties relating to uncertain tax positions in income tax expense. At March 31, 2016 , we did not have any accrued liability for uncertain tax positions and do not anticipate recognition of any significant liabilities for uncertain tax positions during the next 12 months. Our U.S. Federal income tax returns for 2007 forward, our Louisiana income tax returns from 2000 forward and our Texas franchise tax returns after 2010 remain subject to examination by the taxing authorities. There are no material unresolved items related to periods previously audited by these taxing authorities. No other jurisdiction returns are significant to our financial position. For the three months ended March 31, 2016 , the tax benefit for the book loss was offset by an increase in our valuation allowance against our deferred tax assets. Accounts Payable and Accrued Liabilities . The “Accounts payable and accrued liabilities” balances on the accompanying condensed consolidated balance sheets are summarized below (in thousands): March 31, December 31, Trade accounts payable (1)(2) $ 24,731 $ — Accrued operating expenses (1) 3,775 — Accrued compensation costs (1) 4,059 — Asset retirement obligation – current portion 7,719 7,165 Accrued taxes (1) 3,022 — Other payables (3)(4) 17,320 498 Total accounts payable and accrued liabilities $ 60,626 $ 7,663 (1) Total balance classified as Liabilities subject to compromise as of December 31, 2015 . (2) Total balance at March 31, 2016 was $26.3 million , of which $1.6 million was classified as Liabilities subject to compromise with the remaining portion classified as "Trade accounts payable". (3) Total balance at March 31, 2016 and December 31, 2015 was $18.3 million and $5.3 million , respectively, of which $1.0 million and $4.8 million were classified as Liabilities subject to compromise with the remaining portion classified as "Other payables". (4) Total balance at March 31, 2016 includes $7.1 million in accrued legal and professional fees primarily related to the company's bankruptcy proceedings. Cash and Cash Equivalents. We consider all highly liquid instruments with an initial maturity of three months or less to be cash equivalents. These amounts do not include cash balances that are contractually restricted. Long-term Restricted Cash. Long-term restricted cash includes amounts held in escrow accounts to satisfy plugging and abandonment obligations. As of March 31, 2016 and December 31, 2015 , these assets were approximately $1.0 million . These amounts are restricted as to their current use and will be released when we have satisfied all plugging and abandonment obligations in certain fields. These restricted cash balances are reported in “Other Long-Term Assets” on the accompanying condensed consolidated balance sheets. Treasury Stock. Our treasury stock repurchases are reported at cost and are included “Treasury stock held, at cost" on the accompanying condensed consolidated balance sheets. When the Company reissues treasury stock the gains are recorded in "Additional paid-in capital" ("APIC") on the accompanying condensed consolidated balance sheets, while the losses are recorded to APIC to the extent that previous net gains on the reissuance of treasury stock are available to offset the losses. If the loss is larger than the previous gains available then the loss is recorded to "Retained earnings (Accumulated deficit)" on the accompanying condensed consolidated balance sheets. New Accounting Pronouncements. In May 2014, the FASB issued ASU 2014-09, providing a comprehensive revenue recognition standard for contracts with customers that supersedes current revenue recognition guidance. The guidance requires entities to recognize revenue using the following five-step model: identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue as the entity satisfies each performance obligation. Adoption of this standard could result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017. We are currently reviewing the new requirements to determine the impact of this guidance on our financial statements. In July 2015, the FASB issued ASU 2015-11, which changes the measurement principle for inventory from the lower of cost or market to “lower of cost and net realizable value.” The standard simplifies the current guidance under which an entity must measure inventory at the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable value). Net realizable value is defined as the “estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods thereafter, and must be applied prospectively after the date of adoption. We do not expect this new guidance to have a material impact on our financial statements. In November 2015, the FASB issued ASU 2015-17, which requires companies to classify all deferred tax assets and liabilities as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods thereafter, with early adoption permitted and either with prospective or retrospective application permitted. If applied prospectively, the guidance requires we disclose the nature of and reason for the change in accounting principle as well as a statement that prior periods were not retrospectively adjusted. We do not expect this new guidance to have a material impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, which requires lessees to record most leases on the balance sheet. Under the new guidance, lease classification as either a finance lease or an operating lease will determine how lease-related revenue and expense are recognized. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently reviewing these new requirements to determine the impact of this guidance on our financial statements. In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. We are currently reviewing these new requirements to determine the impact of this guidance on our financial statements. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | (3) Share-Based Compensation Bankruptcy Proceedings Upon the Company's emergence from bankruptcy on April 22, 2016, as discussed in Note 1A, the Company’s current common stock was canceled and new common stock was issued. The Company's currently existing share-based compensation awards were also either vested or canceled upon the Company's emergence from bankruptcy. Accelerated vesting and cancellation of these share-based compensation awards will result in the recognition of expense, on the date of vesting or cancellation, to record any previously unamortized expense related to the awards. Share-Based Compensation Plans We have various types of share-based compensation plans. Refer to Part III, as well as Note 7 in our Annual Report on Form 10-K, for the fiscal year ended December 31, 2015 for additional information related to these share-based compensation plans. We follow guidance contained in FASB ASC 718 to account for share-based compensation. We receive a tax deduction for certain stock option exercises during the period the stock options are exercised, generally for the excess of the market value on the exercise date over the exercise price of the stock option awards. We receive an additional tax deduction when restricted stock awards vest at a higher value than the value used to recognize compensation expense at the date of grant. We are required to report excess tax benefits from the award of equity instruments as financing cash flows. For the three months ended March 31, 2016 , there was no income tax benefit or shortfall in earnings, while for the three months ended March 31, 2015 we did recognize an income tax shortfall in earnings of $1.2 million , primarily related to restricted stock awards that vested at a price lower than the grant date fair value. Share-based compensation expense for awards issued to both employees and non-employees, which was recorded in “General and administrative, net” in the accompanying condensed consolidated statements of operations, was $0.7 million and $0.8 million for the three months ended March 31, 2016 and 2015 . Share-based compensation expense recorded in lease operating cost was less than $0.1 million for the three months ended March 31, 2016 and 2015 , respectively. We also capitalized $0.2 million and $0.3 million of share-based compensation for the three months ended March 31, 2016 and 2015 , respectively. We view stock option awards and restricted stock awards with graded vesting as single awards with an expected life equal to the average expected life of component awards, and we amortize the awards on a straight-line basis over the life of the awards. Stock Option Awards We use the Black-Scholes-Merton option pricing model to estimate the fair value of stock option awards. During the three months ended March 31, 2016 , 111,984 stock option awards expired leaving 1,218,406 stock option awards outstanding at March 31, 2016 . There was no other activity relating to our stock option awards during the three months ended March 31, 2016 . As of March 31, 2016 , our stock option awards outstanding and exercisable had no aggregate intrinsic value since all outstanding stock option awards were out of the money, and we did not have any remaining unrecognized compensation cost related to stock option awards. At March 31, 2016 , the weighted average contract life of stock option awards outstanding and exercisable was 3.8 years. Upon the Company's emergence from bankruptcy on April 22, 2016, these outstanding awards were canceled. Restricted Stock Awards The plans, as described in Note 7 of our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 , allow for the issuance of restricted stock awards that generally may not be sold or otherwise transferred until certain restrictions have lapsed. The unrecognized compensation cost related to these awards is typically expensed over the period the restrictions lapse (generally one to three years ). Upon the Company's emergence from bankruptcy on April 22, 2016, the outstanding restricted stock awards for most employees vested on an accelerated basis while awards issued to certain members of management of the Company and the Board of Directors were canceled. The compensation expense for these awards was determined based on the closing market price of our stock at the date of grant applied to the total number of shares that were anticipated to fully vest. As of March 31, 2016 , we had unrecognized compensation expense of $2.3 million related to restricted stock awards which was expected to be recognized over a weighted-average period of 1.2 years. The grant date fair value of shares vested during the three months ended March 31, 2016 was $3.4 million . The following table represents restricted stock award activity for the three months ended March 31, 2016 : Shares Wtd. Avg. Grant Price Restricted shares outstanding, beginning of period 1,487,076 $ 8.94 Restricted shares granted — $ — Restricted shares canceled (57,077 ) $ 9.21 Restricted shares vested (223,690 ) $ 15.35 Restricted shares outstanding, end of period 1,206,309 $ 7.73 Performance-Based Restricted Stock Units For the three months ended March 31, 2015 , the Company granted 216,450 units of performance-based restricted stock units containing market conditions that require the price of our common stock to increase to $5.22 per share by December 31, 2017, the end of the performance period, before any payout is achieved. These units were granted at 100% of the target payout level with conditions of the grants allowing for a payout ranging between no payout and 200% of target. The compensation expense for these awards is based on the per unit grant date valuation using a Monte-Carlo simulation multiplied by the target payout level. The payout level is calculated based on actual stock price performance achieved during the performance period. The awards have a cliff vesting period of 3.0 years . Upon the Company's emergence from bankruptcy on April 22, 2016, these outstanding awards were canceled. As of March 31, 2016 , we had unrecognized compensation expense of $0.6 million related to our restricted stock units, which was expected to be recognized over a weighted-average period of 1.4 years . During the three months ended March 31, 2016 , 189,700 shares vested, with no payout as they were out of the money. The weighted average grant date fair value for the restricted stock units granted during the three months ended March 31, 2015 was $1.98 per unit. The following table represents restricted stock unit activity for the three months ended March 31, 2016 : Shares Wtd. Avg. Restricted stock units outstanding, beginning of period 591,400 $ 9.20 Restricted stock units granted — $ — Restricted stock units canceled — $ — Restricted stock units vested (189,700 ) $ 15.01 Restricted stock units outstanding, end of period 401,700 $ 6.45 Cash-Settled Restricted Stock Units (Liability Awards) During the three months ended March 31, 2015 , the Company granted 147,812 units of cash-settled restricted stock units. These grants originally required a cash payout based on the fair value of the stock price on the date of the next Annual Shareholder Meeting, which was originally expected to be held during May of 2016. The grants had cliff vesting period of approximately 1.0 year while the compensation expense and corresponding liability are remeasured quarterly over the corresponding service period. The Company recorded a liability of less than $0.1 million for these awards in "Accounts Payable and accrued liabilities” on the accompanying condensed consolidated balance sheet as of March 31, 2016 . Upon the Company's emergence from bankruptcy on April 22, 2016, these outstanding awards were canceled. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (4) Earnings Per Share Upon the Company's emergence from bankruptcy on April 22, 2016, as discussed in Note 1A, the Company’s then current common stock was canceled and new common stock and warrants were issued. The earnings per share amounts disclosed below would have been materially different if the emergence from bankruptcy had occurred before the end of the current period. The Company computes earnings per share in accordance with FASB ASC 260-10. Basic earnings per share (“Basic EPS”) has been computed using the weighted average number of common shares outstanding during each period. Diluted earnings per share ("Diluted EPS") assumes, as of the beginning of the period, exercise of stock options and restricted stock grants using the treasury stock method. Diluted EPS also assumes conversion of performance-based restricted stock units to common shares based on the number of shares (if any) that would be issuable, according to predetermined performance and market goals, if the end of the reporting period was the end of the performance period. As we recognized a net loss for the three months ended March 31, 2016 , the unvested share-based payments and stock options were not recognized in diluted earnings per share (“Diluted EPS”) calculations as they would be antidilutive. Certain of our stock options and restricted stock grants that would potentially dilute Basic EPS in the future were also antidilutive for the three months ended March 31, 2015 , and are discussed below. The following is a reconciliation of the numerators and denominators used in the calculation of Basic and Diluted EPS for the three months ended March 31, 2016 and 2015 (in thousands, except per share amounts): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Net Income (Loss) Shares Per Share Amount Net Income (Loss) Shares Per Share Amount Basic EPS: Net Income (Loss) and Share Amounts $ (108,303 ) 44,672 $ (2.42 ) $ (477,077 ) 44,232 $ (10.79 ) Dilutive Securities: Restricted Stock Awards — — Restricted Stock Units — — Diluted EPS: Net Income (Loss) and Assumed Share Conversions $ (108,303 ) 44,672 $ (2.42 ) $ (477,077 ) 44,232 $ (10.79 ) Approximately 1.3 million stock options to purchase shares were not included in the computation of Diluted EPS for the three months ended March 31, 2016 and 2015 , respectively, because they were antidilutive. Approximately 0.3 million and 0.7 million restricted stock awards for the three months ended March 31, 2016 and 2015 , respectively, were not included in the computation of Diluted EPS because they were antidilutive given the net loss. Approximately 0.8 million and 1.2 million shares for the three months ended March 31, 2016 and 2015 , respectively, related to performance-based restricted stock units that could be converted to common shares based on predetermined performance and market goals were not included in the computation of Diluted EPS because the performance and market conditions had not been met, assuming the end of the reporting period was the end of the performance period. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (5) Debt Bankruptcy Filing . The Chapter 11 filing of the Company and the Chapter 11 Subsidiaries constituted an event of default with respect to our existing debt obligations. As a result, the Company's pre-petition unsecured senior notes and secured debt under the Existing First Lien Credit Agreement became immediately due and payable, but any efforts to enforce such payment obligations were automatically stayed as a result of the Chapter 11 filing. On April 22, 2016, upon the Company's emergence from bankruptcy, the senior notes and the DIP Credit Agreement (along with certain unsecured claims) were exchanged for 88.5% of the common stock of the reorganized entity. Additional information regarding the bankruptcy proceedings is included in Note 1A of these condensed consolidated financial statements. Our debt balances as of March 31, 2016 and December 31, 2015 , were as follows (in thousands): March 31, 2016 December 31, 2015 7.125% senior notes due 2017 (1) $ — $ — 8.875% senior notes due 2020 (1) — — 7.875% senior notes due 2022 (1) — — Bank Borrowings 339,900 324,900 Total Debt $ 339,900 $ 324,900 Less: Current portion of long-term debt (2) $ (339,900 ) $ (324,900 ) Long-Term Debt $ — $ — (1) Classified as Liabilities subject to compromise as of March 31, 2016 and December 31, 2015. (2) As a result of our Chapter 11 filing, we have classified our Existing First Lien Credit Agreement borrowings and DIP Credit Agreement borrowings as current as of March 31, 2016 and December 31, 2015. Reclassification of Senior Notes Liabilities . Senior Notes due in 2017 of $250.0 million , Senior Notes due in 2020 of $225.0 million and Senior Notes due in 2022 of $400.0 million are included in Liabilities subject to compromise in the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 . Reclassification of Existing First Lien Credit Agreement Liabilities . Amounts outstanding under our pre-petition Existing First Lien Credit Agreement due in 2017 of $324.9 million were reclassified as a current liability in the condensed consolidated balance sheet dated as of March 31, 2016 and December 31, 2015 due to cross-default provisions as a result of the bankruptcy filings. The associated remaining unamortized debt issuance costs of $2.4 million on the Existing First Lien Credit Agreement were written-off in "Interest expense, net" on the Company's condensed consolidated statement of operations as of March 31, 2016 . Debtor-In-Possession Financing . As part of the Chapter 11 filings, we entered into the DIP Credit Agreement. As of March 31, 2016 , the total amount available for borrowing under our DIP Credit Agreement was $30.0 million , of which $15.0 million was outstanding. The remaining $45.0 million under the DIP Credit Agreement became available to the Company upon emergence from bankruptcy. The proceeds of the DIP Credit Agreement were primarily used to pay down the pre-petition Existing First Lien Credit Agreement upon emergence from bankruptcy, and were also used to pay certain costs, fees and expenses related to the Chapter 11 cases, authorized pre-petition claims, and amounts due in connection with the DIP Credit Agreement, including on account of certain “adequate protection” obligations. Pursuant to the plan of reorganization, the DIP Credit Agreement, at the option of the lenders, converted into the post-emergence Company’s common stock, which was part of the 88.5% of the common stock distributed to the current holders of the senior notes and certain unsecured creditors upon emergence from the bankruptcy proceedings. As a result, the $75.0 million borrowed under the DIP Credit Agreement was not required to be repaid and terminated upon the Company’s exit from bankruptcy. Under the DIP Credit Agreement, interest accrued at a rate per year equal to LIBOR plus 12.0% for Eurodollar Rate Loans or the alternative base rate plus 11.0% . We paid the lenders under the DIP Credit Agreement a 3.0% commitment fee, at the time funds were made available under the facility, totaling $0.9 million during the first quarter of 2016 . We were also required to pay to each Backstop Lender (as defined in the DIP Credit Agreement) a non-refundable backstop fee of 7.5% on the pro rata share of such Backstop Lender’s share of the loan commitments, payable in the form of common stock issued by the Company upon emergence from the Chapter 11 cases. An original issue discount of 5% was paid by the Company at the time of any drawdowns against the DIP Credit Agreement, resulting in net proceeds to the Company of 95% of the gross drawdown amount. The DIP Credit Agreement was secured by security interests in substantially all of the Company’s assets, which were (1) second priority to the existing pre-petition liens of the lenders and JPMorgan Chase Bank, N.A., as administrative agent with respect to the collateral (generally required to be at least 95% of our oil and gas properties) set forth in the Second Amended and Restated Credit Agreement, dated as of September 21, 2010 (the “Existing First Lien Credit Agreement”), and (2) first priority with respect to all other property of the Company. These security interests were subject to certain carve-outs (such as bankruptcy court costs and professional fees), and permitted liens under the DIP Credit Agreement. The DIP Credit Agreement was subject to customary covenants, prepayment events, events of default and other provisions. Interest expense on the DIP Credit Agreement totaled $1.9 million during the three months ended March 31, 2016 . Bank Borrowings . Effective November 2, 2015 , we executed an amendment to our Existing First Lien Credit Agreement lowering our borrowing base and commitment amount from $375.0 million to $330.0 million . We had $324.9 million in outstanding borrowings under our Existing First Lien Credit Agreement at March 31, 2016 and December 31, 2015 , respectively. As of March 31, 2016 , the interest rate on our Existing First Lien Credit Agreement was either (a) the lead bank’s prime rate plus an applicable margin or (b) the Eurodollar rate plus an applicable margin. However with respect to (a), if the lead bank’s prime rate was not higher than each of the federal funds rate plus 0.5% , and the adjusted London Interbank Offered Rate (“LIBOR”) plus 1% , the greatest of these three rates then applied. The applicable margins vary depending on the level of outstanding debt with escalating rates of 100 to 200 basis points above the Alternative Base Rate and escalating rates of 200 to 300 basis points for Eurodollar rate loans. At March 31, 2016 , the lead bank's prime rate was 3.5% . The commitment fee terms associated with the Existing First Lien Credit Agreement were 0.50% for the three months ended March 31, 2016 . During the bankruptcy proceedings we paid interest on our Existing First Lien Credit Agreement in the normal course. Interest expense on the Existing First Lien Credit Agreement, including commitment fees and amortization of debt issuance costs, totaled $6.1 million and $1.7 million for the three months ended March 31, 2016 and 2015 , respectively. The amount of commitment fees included in interest expense, net was immaterial for the three months ended March 31, 2016 and $0.2 million for the three months ended March 31, 2015 . Additionally, we capitalized interest on our unproved properties in the amount $1.2 million for the three months ended March 31, 2015 . We did no t capitalize interest on our unproved properties for the three months ended March 31, 2016 . Due to the bankruptcy proceedings, most acts to exercise remedies under our Existing First Lien Credit Agreement, including those related to defaults of various financial covenants and ratios, were stayed as of December 31, 2015 and continued to be stayed during the bankruptcy proceedings. No further funds were available to us under the Existing First Lien Credit Agreement. The terms of our Existing First Lien Credit Agreement included, among other restrictions, a limitation on the level of cash dividends (not to exceed $15.0 million in any fiscal year), a remaining aggregate limitation on purchases of our stock of $50.0 million , and limitations on incurring other debt. At March 31, 2016 , our Existing First Lien Credit Agreement contained financial covenants detailing certain minimum financial ratios that must be maintained. The first was an adjusted working capital ratio of adjusted current assets to current liabilities (as defined in the Existing First Lien Credit Agreement) of not less than 0.5 to 1.0 for each of the quarters up to and ending on December 31, 2016, returning to a ratio of not less than 1.0 to 1.0 at any time thereafter. The second ratio was the interest coverage ratio, calculated on a trailing twelve month basis of EBITDAX to interest expense (as defined in the Existing First Lien Credit Agreement), of not less than 1.15 to 1.0 for the quarters ending on December 31, 2015 through June 30, 2016, 1.3 to 1.0 for the quarters ending September 30, 2016 through December 31, 2016, and 2.0 to 1.0 any time thereafter. The third ratio was the senior secured leverage ratio (as defined in the Existing First Lien Credit Agreement), requiring that the ratio of senior secured liabilities on the last day of the quarter to EBITDAX, calculated on a trailing twelve month basis, not be greater than 3.5 to 1.0 for the quarters ending December 31, 2015 through June 30, 2016, 3.0 to 1.0 for the quarters ending September 30, 2016 through December 31, 2016, and 2.5 to 1.0 any time thereafter. Since inception, no cash dividends have been declared on our common stock. As of March 31, 2016 , the terms of the Existing First Lien Credit Agreement required us to secure the facility with collateral equal to at least 95% of our oil and natural gas properties. Under the terms of the Existing First Lien Credit Agreement, the commitment amount can be less than or equal to the total amount of the borrowing base with unanimous consent of the bank group as it might change from time to time. New Credit Facility. As discussed in Note 1A of these condensed consolidated financial statements, on the Effective Date, April 22, 2016, the Existing First Lien Credit Agreement was terminated and paid in full, and the Company entered the New Credit Facility among the Company, as borrower, JPMorgan Chase Bank, National Association, as administrative agent, and certain lenders party thereto. The New Credit Facility matures three years after the Effective Date and provides for advancing loans of up to the maximum credit amount that the lenders, in the aggregate, make available, subject to the Company meeting certain financial requirements, including certain financial tests. As of the Effective Date, the maximum credit amount was $500.0 million with an initial borrowing base of $320.0 million . The obligations under the New Credit Facility are being secured, subject to certain exceptions, by a first priority lien on substantially all assets of the Company and certain of its subsidiaries. The terms of the New Credit Facility also include the following, based on terms as defined in the New Credit Facility agreement: • A non-conforming borrowing base of $70 million , which terminates on November 1, 2017, and a conforming borrowing base of $250 million . • The interest rate for Alternative Base Rate ("ABR") loans will be based on the ABR plus the applicable margin, and the interest rate for Eurodollar loans will be based on the adjusted London Interbank Offered Rate (“LIBOR”), plus the applicable margin. • The applicable margins vary and have escalating rates of either (a) 500 to 600 basis points for ABR loans and 600 to 700 basis points for Eurodollar loans, during the non-conforming period, and depending on the level of the non-conforming borrowing base and the non-conforming borrowing base loans outstanding, or (b) 200 to 300 basis points for ABR loans and 300 to 400 basis points for Eurodollar loans depending on the borrowing base utilization percentage, after the non-conforming period or when both the non-conforming borrowing base is zero and there are no non-conforming borrowing base loans outstanding. • Certain covenants, including (a) a ratio of total debt to EBITDA (not to exceed 6.5 to 1.0 for the quarter ending September 30, 2016, declining gradually over time to 3.5 to 1.0 for the quarter ending March 31, 2019, and thereafter), a current ratio of not less than 1.0 to 1.0 at the end of each quarter beginning June 30, 2016, and (c) a minimum liquidity requirement of $10 million . Senior Notes Due In 2022. These notes consisted of $400.0 million of 7.875% senior notes due 2022 that were scheduled to mature on March 1, 2022. On November 30, 2011, we issued $250.0 million of these senior notes at a discount of $2.1 million or 99.156% of par, which equated to an effective yield to maturity of 8% . On October 3, 2012, we issued an additional $150.0 million of these senior notes at 105% of par, which equated to a yield to worst of 6.993% . As of March 31, 2016 , these senior notes were senior unsecured obligations that ranked equally with all of our existing and future senior unsecured indebtedness, were effectively subordinated to all our existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness, including borrowing under our bank Existing First Lien Credit Agreement, and ranked senior to any future subordinated indebtedness of Swift Energy. Interest on these notes was payable semi-annually on March 1 and September 1 and commenced on March 1, 2012. The filing of the petition for bankruptcy protection constituted an “event of default” under the indenture governing these senior notes. On April 22, 2016, the obligations of the Company and the Chapter 11 Subsidiaries with respect to these notes were canceled. Senior Notes Due In 2020 . These notes consisted of $225.0 million of 8.875% senior notes due 2020 issued at 98.389% of par, which equated to an effective yield to maturity of 9.125% . The notes were issued on November 25, 2009 with an original discount of $3.6 million and were scheduled to mature on January 15, 2020. As of March 31, 2016 , these senior notes were senior unsecured obligations that ranked equally with all of our existing and future senior unsecured indebtedness, were effectively subordinated to all our existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness, including borrowing under our bank Existing First Lien Credit Agreement, and ranked senior to any future subordinated indebtedness of Swift Energy. Interest on these notes was payable semi-annually on January 15 and July 15 and commenced on January 15, 2010. The filing of the petition for bankruptcy protection constituted an “event of default” under the indenture governing these senior notes. On April 22, 2016, the obligations of the Company and the Chapter 11 Subsidiaries with respect to these notes were canceled. Senior Notes Due In 2017 . These notes consisted of $250.0 million of 7.125% senior notes due in 2017, which were issued on June 1, 2007 at 100% of the principal amount and were scheduled to mature on June 1, 2017. As of March 31, 2016 , the notes were senior unsecured obligations that ranked equally with all of our existing and future senior unsecured indebtedness, were effectively subordinated to all our existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness, including borrowing under our bank Existing First Lien Credit Agreement, and ranked senior to any future subordinated indebtedness of Swift Energy. Interest on these notes was payable semi-annually on June 1 and December 1, and commenced on December 1, 2007. Prior to the Chapter 11 filing, the Company elected not to make the $8.9 million semi-annual interest payment due December 1, 2015, on its outstanding $250.0 million principal amount of 7.125% Senior Notes due 2017. The filing of the petition for bankruptcy protection constituted an “event of default” under the indenture governing these senior notes. On April 22, 2016, the obligations of the Company and the Chapter 11 Subsidiaries with respect to these notes were canceled. Debt Issuance Costs . Our policy is to capitalize legal fees, accounting fees, underwriting fees, printing costs, and other direct expenses associated with our senior notes, amortizing those costs on an effective interest basis over the term of the senior notes, while issuance costs related to a line of credit arrangement are capitalized and then amortized ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings. In April 2015, the FASB issued ASU 2015-03, which requires debt issuance costs related to our debt to be presented on the balance sheet as a reduction of the carrying amount of the long-term debt. We implemented this guidance during the first quarter of 2016 on a retrospective basis, with no material impact to our financial statements as of March 31, 2016 , and December 31, 2015 , respectively, since we wrote off the debt issuance costs related to our senior notes as of December 31, 2015, as a result of our bankruptcy proceedings. In August 2015, the FASB issued ASU 2015-15, which allows for debt issuance costs related to line of credit arrangements to continue to be presented as assets, regardless of whether there are any outstanding borrowings. Debt issuance costs related to line of credit arrangements continue to be presented as an asset on our condensed consolidated balance sheets. Interest Expense on Senior Notes . There was no interest expense on the senior notes, for the three months ended March 31, 2016 due to our bankruptcy proceedings. Interest expense on the senior notes totaled $17.7 million for the three months ended March 31, 2015 |
Acquisitions and Dispositions A
Acquisitions and Dispositions Acquisitions and Dispostions | 3 Months Ended |
Mar. 31, 2016 | |
Acquisitions and Dispositions [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures | (6) Acquisitions and Dispositions On April 15, 2016, we closed our transaction with Texegy LLC for the sale a working interest share of the Company's holdings in the South Bearhead Creek and Burr Ferry field areas located in Central Louisiana. Refer to Note 2 of these condensed consolidated financial statements for more information. There were no material acquisitions or dispositions in the three months ended March 31, 2016 or 2015 . |
Price-Risk Management Price-Ris
Price-Risk Management Price-Risk Management (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Price-Risk Management Activities | (7) Price-Risk Management Activities The Company follows FASB ASC 815-10, which requires that changes in the derivative’s fair value are recognized in earnings. The changes in the fair value of our derivatives are recognized in "Price-risk management and other, net” on the accompanying condensed consolidated statements of operations. We have a price-risk management policy to use derivative instruments to protect against declines in oil and natural gas prices, mainly through the purchase of price swaps, floors, calls, collars and participating collars. During the three months ended March 31, 2016 there were no gains or losses, while during the three months ended March 31, 2015 there was a net gain of $0.3 million , related to our derivative activities. The effects of our derivatives are included in the "Other" section of our operating activities on the accompanying condensed consolidated statements of cash flows. The fair values of our derivatives are computed using commonly accepted industry-standard models and are periodically verified against quotes from brokers. There were no unsettled derivative assets and no unsettled derivative liabilities as of March 31, 2016 . The Company uses an International Swap and Derivatives Association "ISDA" master agreement for our derivative contracts. This is an industry standardized contract containing the general conditions of our derivative transactions including provisions relating to netting derivative settlement payments under certain circumstances (such as default). For reporting purposes, the Company has elected to not offset the asset and liability fair value amounts of its derivatives on the accompanying balance sheets. All our outstanding hedge agreements had settled as of March 31, 2016 , under the right of set-off, there was no net fair value at March 31, 2016 . For further discussion related to the fair value of the Company's derivatives, refer to Note 8 of these condensed consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (8) Fair Value Measurements FASB ASC 820-10 defines fair value, establishes guidelines for measuring fair value and expands disclosure about fair value measurements. Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, bank borrowings, and senior notes. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable approximate fair value due to the highly liquid or short-term nature of these instruments. Based upon quoted market prices as of March 31, 2016 and December 31, 2015 , the fair value and carrying value of our senior notes was as follows (in millions): March 31, 2016 December 31, 2015 Fair Value Carrying Value Fair Value Carrying Value 7.125% senior notes due 2017 $ 13.4 $ 250.0 $ 23.0 $ 250.0 8.875% senior notes due 2020 (1) $ 9.9 $ 225.0 $ 21.4 $ 225.0 7.875% senior notes due 2022 (1) $ 20.9 $ 400.0 $ 34.5 $ 400.0 (1) Includes write-off of discount associated with the 2020 notes and premium associated with the 2022 notes due to the Company's bankruptcy proceedings. Our senior notes due in 2017, 2020 and 2022 are stated at carrying value on our accompanying condensed consolidated balance sheets. If we recorded these notes at fair value they would be Level 1 in our fair value hierarchy as they are traded in an active market with quoted prices for identical instruments. As of March 31, 2016 and December 31, 2015 all of the Company's hedging agreements had settled. |
Asset Retirement Obligations As
Asset Retirement Obligations Asset Retirement Obligations (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | (9) Asset Retirement Obligations We record these obligations in accordance with the guidance contained in FASB ASC 410-20. This guidance requires entities to record the fair value of liabilities for legal obligations associated with the retirement obligations of tangible long-lived assets in the period in which they are incurred. When a liability is initially recorded, the carrying amount of the related long-lived asset is increased. The liability is discounted from the expected date of abandonment. Over time, accretion of the liability is recognized each period, and the capitalized cost is depreciated on a unit-of-production basis as part of depreciation, depletion, and amortization expense for our oil and gas properties. Upon settlement of the liability, the Company either settles the obligation for its recorded amount or incurs a gain or loss upon settlement which is included in the “Property and Equipment” balance on our accompanying condensed consolidated balance sheets. This guidance requires us to record a liability for the fair value of our dismantlement and abandonment costs, excluding salvage values. The following provides a roll-forward of our asset retirement obligations (in thousands): 2016 Asset Retirement Obligations recorded as of January 1 $ 63,555 Accretion expense 1,291 Liabilities incurred for new wells and facilities construction — Reductions due to sold and abandoned wells and facilities (1 ) Revisions in estimates 488 Asset Retirement Obligations as of March 31 $ 65,333 At March 31, 2016 and December 31, 2015 , approximately $7.7 million and $7.2 million of our asset retirement obligations were classified as a current liability in “Accounts payable and accrued liabilities” on the accompanying condensed consolidated balance sheets. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2016 | |
Guarantees [Abstract] | |
Condensed Consolidating Financial Information | (10) Condensed Consolidating Financial Information Swift Energy Company (the parent) is the issuer and Swift Energy Operating, LLC (a wholly owned indirect subsidiary of Swift Energy Company) is the sole guarantor of our senior notes due 2017, 2020 and 2022. Swift Energy Company does not have any independent assets or operations. The guarantees on our senior notes due 2017, 2020 and 2022 are full and unconditional. All subsidiaries of Swift Energy Company, other than Swift Energy Operating, LLC, are immaterial. The Chapter 11 bankruptcy proceedings, as discussed in Note 1A of the consolidated financial statements, include all of our domestic subsidiaries but do not include our international subsidiaries, which are 100% owned by our domestic subsidiary Swift Energy International, Inc. These international subsidiaries primarily consist of our New Zealand subsidiaries, which liquidated their assets in 2007 and 2008. These subsidiaries have had no activity since 2008, except for the recognition of gains in 2011 upon the settlement of legal claims related to the 2007 and 2008 divestitures, and have no debt obligations. We do not have any material intercompany balances between our entities in bankruptcy proceedings and our entities not in bankruptcy proceedings. Intercompany balances for our entities in bankruptcy proceedings, which have been eliminated within our consolidated balance sheets, include payables due from Swift Energy Operating, LLC to Swift Energy Company (the parent) in the amount of $416.4 million and to Swift Energy International, Inc. in the amount of $85.4 million , and receivables due to Swift Energy Operating, LLC from Swift Energy Alaska, Inc. in the amount of approximately $6.1 million and from Swift Energy Exploration Services, Inc. in the amount of $0.1 million . |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies In the ordinary course of business, we are party to various legal actions, which arise primarily from our activities as operator of oil and natural gas wells. As of March 31, 2016, most of our pending legal proceedings have been stayed by virtue of our voluntary petition filed on December 31, 2015 seeking relief under Chapter 11 of the Bankruptcy Code. As noted in Note 1A and Note 5, during the bankruptcy proceedings we obtained financing through the DIP Credit Agreement, from which we had outstanding borrowings of $15.0 million as of March 31, 2016 . We had no other material changes from amounts referenced under Note 5 in our Notes to consolidated financial statements from our Annual Report on Form 10-K for the year ending December 31, 2015 . |
Chapter 11 Proceedings Chapte21
Chapter 11 Proceedings Chapter 11 Proceedings (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Reorganizations [Abstract] | |
Chapter 11 Proceedings | (1A) Chapter 11 Proceedings On December 31, 2015 , Swift Energy Company ("Swift Energy," the "Company" or "we") and eight of its U.S. subsidiaries (the “Chapter 11 Subsidiaries”) filed voluntary petitions seeking relief under Chapter 11 of Title 11 of the U.S. Bankruptcy Code (the "Bankruptcy Code") in the U.S. Bankruptcy Court for the District of Delaware under the caption In re Swift Energy Company, et al (Case No. 15-12670). The Company and the Chapter 11 Subsidiaries received bankruptcy court confirmation of their joint plan of reorganization on March 31, 2016, and subsequently emerged from bankruptcy on April 22, 2016. Although the Company is no longer a debtor-in-possession, the Company was a debtor-in-possession for the entire quarter ended March 31, 2016. As such, certain aspects of the bankruptcy proceedings of the Company and related matters are described below in order to provide context and explain part of our financial condition and results of operations for the period presented. Effect of the Bankruptcy Proceedings. During the bankruptcy proceedings, the Company conducted normal business activities and was authorized to pay and has paid (subject to caps applicable to payments of certain pre-petition obligations) pre-petition employee wages and benefits, pre-petition amounts owed to certain lienholders and critical vendors, pre-petition amounts owed to pipeline owners that transport the Company's production, and funds belonging to third parties, including royalty holders and partners. In addition, subject to certain specific exceptions under the Bankruptcy Code, the Chapter 11 filings automatically stayed most judicial or administrative actions against the Company and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. As a result, we did not record interest expense on the Company’s senior notes for the three months ended March 31, 2016 . For that period, contractual interest on the senior notes totaled $17.3 million . Plan of Reorganization . Pursuant to the plan of reorganization that the bankruptcy court confirmed, the significant transactions that occurred upon emergence from bankruptcy were as follows: • the approximately $906 million of indebtedness outstanding on account of the Company’s senior notes and certain other unsecured claims were exchanged for 88.5% of the post-emergence Company’s common stock; • the lenders under the DIP Credit Agreement (as defined under and more fully described below) received a backstop fee consisting of 7.5% of the post-emergence Company’s common stock; • the Company drew down the entire $75.0 million available under the DIP Credit Agreement, and the DIP Credit Agreement was converted into the Company’s post-emergence common stock; • the Company’s pre-petition common stock was canceled and the current shareholders received the remaining 4% of the post-emergence Company’s common stock and warrants for up to 30% of the reorganized Company's equity; • claims of other creditors were paid in full in cash, reinstated or otherwise treated in a manner acceptable to the creditors; • the Company entered into a registration rights agreement to provide customary registration rights to certain holders of the Company’s post-emergence common stock that, together with their affiliates received upon emergence 5% or more of the outstanding common stock of the Company; • the Company sold (effective April 15, 2016) a portion of its interest in its Central Louisiana fields known as Burr Ferry and South Bearhead Creek to Texegy LLC, for net proceedings of approximately $46.9 million including deposits received prior to the closing date; and • the Company's previous credit facility (the "Existing First Lien Credit Facility) was terminated and a new $320 million senior secured credit facility (the "New Credit Facility") was established. For more information refer to Note 5 of these condensed consolidated financial statements. In accordance with the plan of reorganization, the post-emergence Company’s new board of directors is made up of seven directors consisting of the Chief Executive Officer of the post-emergence Company (Terry E. Swift), two directors appointed by Strategic Value Partners LLC ("SVP") (Peter Kirchof and David Geenberg), a former holder of the Company’s senior notes, two directors appointed by other former holders of the Company’s senior notes (Gabriel Ellisor and Charles Wampler), one independent director (Michael Duginski) and one vacancy (who will be the new non-executive chairman of the Board). In addition, pursuant to the plan of reorganization, SVP and the other former holders of the Company’s senior notes were given certain continuing nomination rights subject to conditions on share ownership. DIP Credit Agreement. In connection with the pre-petition negotiations of the restructuring support agreement, certain holders of the Company’s senior notes agreed to provide the Company and the Chapter 11 Subsidiaries a debtor-in-possession credit facility (the “DIP Credit Agreement"). The DIP Credit Agreement provided for a multi-draw term loan of up to $75.0 million , which became available to the Company upon the satisfaction of certain milestones and contingencies. Upon emergence from bankruptcy, the Company had drawn down the entire $75.0 million available. Pursuant to the plan of reorganization, the DIP Credit Agreement, at the option of the lenders, converted into the post-emergence Company’s common stock, which was part of the 88.5% of the common stock distributed to the current holders of the senior notes and certain unsecured creditors. As such, the $75.0 million borrowed under the DIP Credit Agreement was not required to be repaid and terminated upon the Company’s exit from bankruptcy. For more information refer to Note 5 of these condensed consolidated financial statements. Fresh Start Accounting . In connection with the Company’s emergence from bankruptcy, we will be required to apply fresh start accounting to our financial statements because (i) the holders of existing voting shares of the Company prior to its emergence received less than 50% of the voting shares of the Company outstanding following its emergence from bankruptcy and (ii) the reorganization value of our assets immediately prior to confirmation of the plan of reorganization was less than the post-petition liabilities and allowed claims. Fresh start accounting will be applied to the Company’s consolidated financial statements as of April 22, 2016, the date on which we emerged from bankruptcy. Under the principles of fresh start accounting, a new reporting entity was considered to be created, and, as a result, the Company will allocate the reorganization value of the Company to its individual assets based on their estimated fair values. As a result of the application of fresh start accounting and the effects of the implementation of the plan of reorganization, the financial statements on or after April 22, 2016 will not be comparable with the financial statements prior to that date. Financial Statement Classification of Liabilities Subject to Compromise . Our financial statements include amounts classified as Liabilities subject to compromise, which represent liabilities that have been allowed, or that we anticipate will be allowed, as claims in our bankruptcy case. As previously referenced, resolution of certain of these claims have and will extend beyond the date we exited bankruptcy. These balances include amounts related to the anticipated rejection of various executory contracts and unexpired leases. Because the uncertain nature of many of the potential claims has not been determined at this time, the magnitude of such claims is not reasonably estimable at this time. Such claims may be material. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation . The accompanying condensed consolidated financial statements include the accounts of Swift Energy and its wholly owned subsidiaries, which are engaged in the exploration, development, acquisition, and operation of oil and gas properties, with a focus on inland waters and onshore oil and natural gas reserves in Louisiana and Texas. Our undivided interests in oil and gas properties are accounted for using the proportionate consolidation method, whereby our proportionate share of each entity’s assets, liabilities, revenues, and expenses are included in the appropriate classifications in the accompanying condensed consolidated financial statements. Intercompany balances and transactions have been eliminated in preparing the accompanying condensed consolidated financial statements. |
Subsequent Events | Subsequent Events . We have evaluated subsequent events of our condensed consolidated financial statements. On April 15, 2016, we closed our transaction with Texegy LLC for the sale of a 75% working interest share of the Company's holdings in the South Bearhead Creek and Burr Ferry field areas located in Central Louisiana. The net proceeds of $46.9 million received by the Company in this transaction, including deposits received prior to the closing date, were used primarily to reduce the amount of borrowings under the Company’s prior Second Amended and Restated Credit Agreement, dated as of September 21, 2010 (the “Existing First Lien Credit Agreement”), and for other general corporate purposes. On April 22, 2016, the Effective Date, the company completed its financial restructuring and emerged from Chapter 11 bankruptcy proceedings after completing all required actions and satisfying the remaining conditions to its Plan of Reorganization, which was confirmed by the US Bankruptcy Court for the District of Delaware by order dated March 31, 2016. See Note 1A of these condensed consolidated financial statements for more information regarding the Company's emergence from bankruptcy. We cannot currently estimate the financial effect of the Company's emergence from bankruptcy on our financial statements, although we expect to record material adjustments related to our plan of reorganization and also due to the application of fresh start accounting guidance upon emergence. There were no other material subsequent events requiring additional disclosure in these financial statements. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the reported amounts of certain revenues and expenses during each reporting period. We believe our estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates and assumptions underlying these financial statements include: • the estimated quantities of proved oil and natural gas reserves used to compute depletion of oil and natural gas properties, the related present value of estimated future net cash flows there-from, and the ceiling test impairment calculation, • estimates related to the collectability of accounts receivable and the credit worthiness of our customers, • estimates of the counterparty bank risk related to letters of credit that our customers may have issued on our behalf, • estimates of future costs to develop and produce reserves, • accruals related to oil and gas sales, capital expenditures and lease operating expenses, • estimates of insurance recoveries related to property damage, and the solvency of insurance providers, • estimates in the calculation of share-based compensation expense, • estimates of our ownership in properties prior to final division of interest determination, • the estimated future cost and timing of asset retirement obligations, • estimates made in our income tax calculations, • estimates of the liabilities subject to compromise versus not subject to compromise, • estimates in the calculation of the fair value of hedging assets and liabilities, and • estimates in the assessment of current litigation claims against the Company. While we are not aware of any material revisions to any of our estimates, there will likely be future revisions to our estimates resulting from matters such as new accounting pronouncements, changes in ownership interests, payouts, joint venture audits, re-allocations by purchasers or pipelines, or other corrections and adjustments common in the oil and gas industry, many of which require retroactive application. These types of adjustments cannot be currently estimated and will be recorded in the period during which the adjustments occur. We are subject to legal proceedings, claims, liabilities and environmental matters that arise in the ordinary course of business. We accrue for losses when such losses are considered probable and the amounts can be reasonably estimated. |
Property and Equipment | Property and Equipment. We follow the “full-cost” method of accounting for oil and natural gas property and equipment costs. Under this method of accounting, all productive and nonproductive costs incurred in the exploration, development, and acquisition of oil and natural gas reserves are capitalized. Such costs may be incurred both prior to and after the acquisition of a property and include lease acquisitions, geological and geophysical services, drilling, completion, and equipment. Internal costs incurred that are directly identified with exploration, development, and acquisition activities undertaken by us for our own account, and which are not related to production, general corporate overhead, or similar activities, are also capitalized. For the three months ended March 31, 2016 and 2015 , such internal costs capitalized totaled $2.5 million and $3.7 million , respectively. Interest costs are also capitalized to unproved oil and natural gas properties (refer to Note 5 of these condensed consolidated financial statements for further discussion on capitalized interest costs). The “Property and Equipment” balances on the accompanying condensed consolidated balance sheets are summarized for presentation purposes. The following is a detailed breakout of our “Property and Equipment” balances (in thousands): March 31, December 31, Property and Equipment Proved oil and gas properties $ 5,997,030 $ 5,972,666 Unproved oil and gas properties 18,839 18,839 Furniture, fixtures, and other equipment 44,252 44,252 Less – Accumulated depreciation, depletion, and amortization (5,673,015 ) (5,577,854 ) Property and Equipment, Net $ 387,106 $ 457,903 No gains or losses are recognized upon the sale or disposition of oil and natural gas properties, except in transactions involving a significant amount of reserves or where the proceeds from the sale of oil and natural gas properties would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a cost center. Internal costs associated with selling properties are expensed as incurred. Future development costs are estimated on a property-by-property basis based on current economic conditions and are amortized to expense as our capitalized oil and gas property costs are amortized. We compute the provision for depreciation, depletion, and amortization (“DD&A”) of oil and natural gas properties using the unit-of-production method. Under this method, we compute the provision by multiplying the total unamortized costs of oil and gas properties-including future development costs, gas processing facilities, and both capitalized asset retirement obligations and undiscounted abandonment costs of wells to be drilled, net of salvage values, but excluding costs of unproved properties-by an overall rate determined by dividing the physical units of oil and natural gas produced (which excludes natural gas consumed in operations) during the period by the total estimated units of proved oil and natural gas reserves (which excludes natural gas consumed in operations) at the beginning of the period. This calculation is done on a country-by-country basis and the period over which we will amortize these properties is dependent on our production from these properties in future years. Furniture, fixtures, and other equipment are recorded at cost and are depreciated by the straight-line method at rates based on the estimated useful lives of the property, which range between two and 20 years. Repairs and maintenance are charged to expense as incurred. Geological and geophysical (“G&G”) costs incurred on developed properties are recorded in “Proved properties” and therefore subject to amortization. G&G costs incurred that are directly associated with specific unproved properties are capitalized in “Unproved properties” and evaluated as part of the total capitalized costs associated with a prospect. The cost of unproved properties not being amortized is assessed quarterly, on a property-by-property basis, to determine whether such properties have been impaired. In determining whether such costs should be impaired, we evaluate current drilling results, lease expiration dates, current oil and gas industry conditions, international economic conditions, capital availability, and available geological and geophysical information. Any impairment assessed is added to the cost of proved properties being amortized. |
Full-Cost Ceiling Test | Full-Cost Ceiling Test . At the end of each quarterly reporting period, the unamortized cost of oil and natural gas properties (including natural gas processing facilities, capitalized asset retirement obligations, net of related salvage values and deferred income taxes, and excluding the recognized asset retirement obligation liability) is limited to the sum of the estimated future net revenues from proved properties (excluding cash outflows from recognized asset retirement obligations, including future development and abandonment costs of wells to be drilled, using the preceding 12-months’ average price based on closing prices on the first day of each month, adjusted for price differentials, discounted at 10% , and the lower of cost or fair value of unproved properties) adjusted for related income tax effects (“Ceiling Test”). The calculations of the Ceiling Test and provision for DD&A are based on estimates of proved reserves. There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting the future rates of production, timing, and plan of development. The accuracy of any reserves estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing, and production subsequent to the date of the estimate may justify revision of such estimates. Accordingly, reserves estimates are often different from the quantities of oil and natural gas that are ultimately recovered. Principally due to the effects of pricing, and also due to the timing of projects and changes in our reserves product mix, for the three months ended March 31, 2016 and 2015 , we reported a non-cash impairment write-down, on a before-tax basis, of $77.7 million and $502.6 million , respectively, on our oil and natural gas properties. |
Revenue Recognition | Revenue Recognition . Oil and gas revenues are recognized when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred, and if collectability of the revenue is probable. Swift Energy uses the entitlement method of accounting in which we recognize our ownership interest in production as revenue. If our sales exceed our ownership share of production, the natural gas balancing payables are reported in “Accounts payable and accrued liabilities” on the accompanying condensed consolidated balance sheets. Natural gas balancing receivables are reported in “Other current assets” on the accompanying condensed consolidated balance sheets when our ownership share of production exceeds sales. As of March 31, 2016 and December 31, 2015 , we did not have any material natural gas imbalances. |
Accounts Receivable | Accounts Receivable. We assess the collectability of accounts receivable, and based on our judgment, we accrue a reserve when we believe a receivable may not be collected. At March 31, 2016 and December 31, 2015 , we had an allowance for doubtful accounts of approximately $0.1 million . The allowance for doubtful accounts has been deducted from the total “Accounts receivable” balance on the accompanying condensed consolidated balance sheets. |
Supervision Fees | Supervision Fees. Consistent with industry practice, we charge a supervision fee to the wells we operate, including our wells, in which we own up to a 100% working interest. Supervision fees are recorded as a reduction to “General and administrative, net”, on the accompanying condensed consolidated statements of operations. Our supervision fees are allocated to each well based on general and administrative costs incurred for well maintenance and support. |
Other Current Assets | Other Current Assets. Included in "Other current assets" on the accompanying condensed consolidated balance sheets are inventories which consist primarily of tubulars and other equipment and supplies that we expect to place in service in production operations. |
Income Taxes | Income Taxes. Under guidance contained in FASB ASC 740-10, deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities, given the provisions of the enacted tax laws. We follow the recognition and disclosure provisions under guidance contained in FASB ASC 740-10-25. Under this guidance, tax positions are evaluated for recognition using a more-likely-than-not threshold, and those tax positions requiring recognition are measured as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our policy is to record interest and penalties relating to uncertain tax positions in income tax expense. |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities . The “Accounts payable and accrued liabilities” balances on the accompanying condensed consolidated balance sheets are summarized below |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid instruments with an initial maturity of three months or less to be cash equivalents. These amounts do not include cash balances that are contractually restricted. |
Long-term Restricted Cash | Long-term Restricted Cash. Long-term restricted cash includes amounts held in escrow accounts to satisfy plugging and abandonment obligations. As of March 31, 2016 and December 31, 2015 , these assets were approximately $1.0 million . These amounts are restricted as to their current use and will be released when we have satisfied all plugging and abandonment obligations in certain fields. These restricted cash balances are reported in “Other Long-Term Assets” on the accompanying condensed consolidated balance sheets. |
Treasury Stock | Treasury Stock. Our treasury stock repurchases are reported at cost and are included “Treasury stock held, at cost" on the accompanying condensed consolidated balance sheets. When the Company reissues treasury stock the gains are recorded in "Additional paid-in capital" ("APIC") on the accompanying condensed consolidated balance sheets, while the losses are recorded to APIC to the extent that previous net gains on the reissuance of treasury stock are available to offset the losses. If the loss is larger than the previous gains available then the loss is recorded to "Retained earnings (Accumulated deficit)" on the accompanying condensed consolidated balance sheets. |
New Accounting Pronouncements | New Accounting Pronouncements. In May 2014, the FASB issued ASU 2014-09, providing a comprehensive revenue recognition standard for contracts with customers that supersedes current revenue recognition guidance. The guidance requires entities to recognize revenue using the following five-step model: identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue as the entity satisfies each performance obligation. Adoption of this standard could result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017. We are currently reviewing the new requirements to determine the impact of this guidance on our financial statements. In July 2015, the FASB issued ASU 2015-11, which changes the measurement principle for inventory from the lower of cost or market to “lower of cost and net realizable value.” The standard simplifies the current guidance under which an entity must measure inventory at the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable value). Net realizable value is defined as the “estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods thereafter, and must be applied prospectively after the date of adoption. We do not expect this new guidance to have a material impact on our financial statements. In November 2015, the FASB issued ASU 2015-17, which requires companies to classify all deferred tax assets and liabilities as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods thereafter, with early adoption permitted and either with prospective or retrospective application permitted. If applied prospectively, the guidance requires we disclose the nature of and reason for the change in accounting principle as well as a statement that prior periods were not retrospectively adjusted. We do not expect this new guidance to have a material impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, which requires lessees to record most leases on the balance sheet. Under the new guidance, lease classification as either a finance lease or an operating lease will determine how lease-related revenue and expense are recognized. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently reviewing these new requirements to determine the impact of this guidance on our financial statements. In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. We are currently reviewing these new requirements to determine the impact of this guidance on our financial statements. |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Option and Incentive Plans Policy | Share-Based Compensation Bankruptcy Proceedings Upon the Company's emergence from bankruptcy on April 22, 2016, as discussed in Note 1A, the Company’s current common stock was canceled and new common stock was issued. The Company's currently existing share-based compensation awards were also either vested or canceled upon the Company's emergence from bankruptcy. Accelerated vesting and cancellation of these share-based compensation awards will result in the recognition of expense, on the date of vesting or cancellation, to record any previously unamortized expense related to the awards. Share-Based Compensation Plans We have various types of share-based compensation plans. Refer to Part III, as well as Note 7 in our Annual Report on Form 10-K, for the fiscal year ended December 31, 2015 for additional information related to these share-based compensation plans. We follow guidance contained in FASB ASC 718 to account for share-based compensation. We receive a tax deduction for certain stock option exercises during the period the stock options are exercised, generally for the excess of the market value on the exercise date over the exercise price of the stock option awards. We receive an additional tax deduction when restricted stock awards vest at a higher value than the value used to recognize compensation expense at the date of grant. We are required to report excess tax benefits from the award of equity instruments as financing cash flows. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy | Earnings Per Share Upon the Company's emergence from bankruptcy on April 22, 2016, as discussed in Note 1A, the Company’s then current common stock was canceled and new common stock and warrants were issued. The earnings per share amounts disclosed below would have been materially different if the emergence from bankruptcy had occurred before the end of the current period. The Company computes earnings per share in accordance with FASB ASC 260-10. Basic earnings per share (“Basic EPS”) has been computed using the weighted average number of common shares outstanding during each period. Diluted earnings per share ("Diluted EPS") assumes, as of the beginning of the period, exercise of stock options and restricted stock grants using the treasury stock method. Diluted EPS also assumes conversion of performance-based restricted stock units to common shares based on the number of shares (if any) that would be issuable, according to predetermined performance and market goals, if the end of the reporting period was the end of the performance period. As we recognized a net loss for the three months ended March 31, 2016 , the unvested share-based payments and stock options were not recognized in diluted earnings per share (“Diluted EPS”) calculations as they would be antidilutive. Certain of our stock options and restricted stock grants that would potentially dilute Basic EPS in the future were also antidilutive for the three months ended March 31, 2015 , and are discussed below. |
Debt Debt (Policies)
Debt Debt (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Issuance Costs, Policy | Debt Issuance Costs . Our policy is to capitalize legal fees, accounting fees, underwriting fees, printing costs, and other direct expenses associated with our senior notes, amortizing those costs on an effective interest basis over the term of the senior notes, while issuance costs related to a line of credit arrangement are capitalized and then amortized ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings. In April 2015, the FASB issued ASU 2015-03, which requires debt issuance costs related to our debt to be presented on the balance sheet as a reduction of the carrying amount of the long-term debt. We implemented this guidance during the first quarter of 2016 on a retrospective basis, with no material impact to our financial statements as of March 31, 2016 , and December 31, 2015 , respectively, since we wrote off the debt issuance costs related to our senior notes as of December 31, 2015, as a result of our bankruptcy proceedings. In August 2015, the FASB issued ASU 2015-15, which allows for debt issuance costs related to line of credit arrangements to continue to be presented as assets, regardless of whether there are any outstanding borrowings. Debt issuance costs related to line of credit arrangements continue to be presented as an asset on our condensed consolidated balance sheets. |
Price-Risk Management Price-R26
Price-Risk Management Price-Risk Management (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Price-Risk Management Activities, Policy | Price-Risk Management Activities The Company follows FASB ASC 815-10, which requires that changes in the derivative’s fair value are recognized in earnings. The changes in the fair value of our derivatives are recognized in "Price-risk management and other, net” on the accompanying condensed consolidated statements of operations. We have a price-risk management policy to use derivative instruments to protect against declines in oil and natural gas prices, mainly through the purchase of price swaps, floors, calls, collars and participating collars. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Disclosures (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy | Fair Value Measurements FASB ASC 820-10 defines fair value, establishes guidelines for measuring fair value and expands disclosure about fair value measurements. Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, bank borrowings, and senior notes. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable approximate fair value due to the highly liquid or short-term nature of these instruments. |
Asset Retirement Obligations 28
Asset Retirement Obligations Asset Retirement Obligations (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations, Policy | Asset Retirement Obligations We record these obligations in accordance with the guidance contained in FASB ASC 410-20. This guidance requires entities to record the fair value of liabilities for legal obligations associated with the retirement obligations of tangible long-lived assets in the period in which they are incurred. When a liability is initially recorded, the carrying amount of the related long-lived asset is increased. The liability is discounted from the expected date of abandonment. Over time, accretion of the liability is recognized each period, and the capitalized cost is depreciated on a unit-of-production basis as part of depreciation, depletion, and amortization expense for our oil and gas properties. Upon settlement of the liability, the Company either settles the obligation for its recorded amount or incurs a gain or loss upon settlement which is included in the “Property and Equipment” balance on our accompanying condensed consolidated balance sheets. This guidance requires us to record a liability for the fair value of our dismantlement and abandonment costs, excluding salvage values. |
Commitments and Contingencies29
Commitments and Contingencies Commitments and Contingencies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies, Policy | (11) Commitments and Contingencies In the ordinary course of business, we are party to various legal actions, which arise primarily from our activities as operator of oil and natural gas wells. As of March 31, 2016, most of our pending legal proceedings have been stayed by virtue of our voluntary petition filed on December 31, 2015 seeking relief under Chapter 11 of the Bankruptcy Code. |
Chapter 11 Proceedings Chapte30
Chapter 11 Proceedings Chapter 11 Proceedings (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Reorganizations [Abstract] | |
Schedule of Liabilities Subject to Compromise | The following table summarizes the components of liabilities subject to compromise included on our condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 December 31, 2015 Accounts payable and accrued liabilities $ 2,607 $ 55,587 Accrued capital costs 1,611 7,225 Undistributed oil and gas revenues 1,881 11,989 Senior notes and accrued interest 905,629 905,629 Other long-term liabilities 6,244 3,958 Liabilities subject to compromise $ 917,972 $ 984,388 |
Schedule of Reorganization Items | The following table summarizes the components included in Reorganization items in our condensed consolidated statements of operations for the three months ended March 31, 2016 (in thousands): March 31, 2016 Reorganization legal and professional fees and expenses $ 13,553 Reorganization pre-petition accounts payable settlements (3,124 ) Reorganization items $ 10,429 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Property and Equipment | The “Property and Equipment” balances on the accompanying condensed consolidated balance sheets are summarized for presentation purposes. The following is a detailed breakout of our “Property and Equipment” balances (in thousands): March 31, December 31, Property and Equipment Proved oil and gas properties $ 5,997,030 $ 5,972,666 Unproved oil and gas properties 18,839 18,839 Furniture, fixtures, and other equipment 44,252 44,252 Less – Accumulated depreciation, depletion, and amortization (5,673,015 ) (5,577,854 ) Property and Equipment, Net $ 387,106 $ 457,903 |
Accounts Payable and Accrued Liabilities | The “Accounts payable and accrued liabilities” balances on the accompanying condensed consolidated balance sheets are summarized below (in thousands): March 31, December 31, Trade accounts payable (1)(2) $ 24,731 $ — Accrued operating expenses (1) 3,775 — Accrued compensation costs (1) 4,059 — Asset retirement obligation – current portion 7,719 7,165 Accrued taxes (1) 3,022 — Other payables (3)(4) 17,320 498 Total accounts payable and accrued liabilities $ 60,626 $ 7,663 (1) Total balance classified as Liabilities subject to compromise as of December 31, 2015 . (2) Total balance at March 31, 2016 was $26.3 million , of which $1.6 million was classified as Liabilities subject to compromise with the remaining portion classified as "Trade accounts payable". (3) Total balance at March 31, 2016 and December 31, 2015 was $18.3 million and $5.3 million , respectively, of which $1.0 million and $4.8 million were classified as Liabilities subject to compromise with the remaining portion classified as "Other payables". (4) Total balance at March 31, 2016 includes $7.1 million in accrued legal and professional fees primarily related to the company's bankruptcy proceedings. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted stock activity | The following table represents restricted stock award activity for the three months ended March 31, 2016 : Shares Wtd. Avg. Grant Price Restricted shares outstanding, beginning of period 1,487,076 $ 8.94 Restricted shares granted — $ — Restricted shares canceled (57,077 ) $ 9.21 Restricted shares vested (223,690 ) $ 15.35 Restricted shares outstanding, end of period 1,206,309 $ 7.73 |
Restricted stock units activity | The following table represents restricted stock unit activity for the three months ended March 31, 2016 : Shares Wtd. Avg. Restricted stock units outstanding, beginning of period 591,400 $ 9.20 Restricted stock units granted — $ — Restricted stock units canceled — $ — Restricted stock units vested (189,700 ) $ 15.01 Restricted stock units outstanding, end of period 401,700 $ 6.45 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of the numerators and denominators used in the calculation of Basic and Diluted EPS | The following is a reconciliation of the numerators and denominators used in the calculation of Basic and Diluted EPS for the three months ended March 31, 2016 and 2015 (in thousands, except per share amounts): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Net Income (Loss) Shares Per Share Amount Net Income (Loss) Shares Per Share Amount Basic EPS: Net Income (Loss) and Share Amounts $ (108,303 ) 44,672 $ (2.42 ) $ (477,077 ) 44,232 $ (10.79 ) Dilutive Securities: Restricted Stock Awards — — Restricted Stock Units — — Diluted EPS: Net Income (Loss) and Assumed Share Conversions $ (108,303 ) 44,672 $ (2.42 ) $ (477,077 ) 44,232 $ (10.79 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term debt | Our debt balances as of March 31, 2016 and December 31, 2015 , were as follows (in thousands): March 31, 2016 December 31, 2015 7.125% senior notes due 2017 (1) $ — $ — 8.875% senior notes due 2020 (1) — — 7.875% senior notes due 2022 (1) — — Bank Borrowings 339,900 324,900 Total Debt $ 339,900 $ 324,900 Less: Current portion of long-term debt (2) $ (339,900 ) $ (324,900 ) Long-Term Debt $ — $ — (1) Classified as Liabilities subject to compromise as of March 31, 2016 and December 31, 2015. (2) As a result of our Chapter 11 filing, we have classified our Existing First Lien Credit Agreement borrowings and DIP Credit Agreement borrowings as current as of March 31, 2016 and December 31, 2015. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value of senior notes | Based upon quoted market prices as of March 31, 2016 and December 31, 2015 , the fair value and carrying value of our senior notes was as follows (in millions): March 31, 2016 December 31, 2015 Fair Value Carrying Value Fair Value Carrying Value 7.125% senior notes due 2017 $ 13.4 $ 250.0 $ 23.0 $ 250.0 8.875% senior notes due 2020 (1) $ 9.9 $ 225.0 $ 21.4 $ 225.0 7.875% senior notes due 2022 (1) $ 20.9 $ 400.0 $ 34.5 $ 400.0 (1) Includes write-off of discount associated with the 2020 notes and premium associated with the 2022 notes due to the Company's bankruptcy proceedings. |
Asset Retirement Obligations 36
Asset Retirement Obligations Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Roll-forward of our asset retirement obligations | The following provides a roll-forward of our asset retirement obligations (in thousands): 2016 Asset Retirement Obligations recorded as of January 1 $ 63,555 Accretion expense 1,291 Liabilities incurred for new wells and facilities construction — Reductions due to sold and abandoned wells and facilities (1 ) Revisions in estimates 488 Asset Retirement Obligations as of March 31 $ 65,333 |
Chapter 11 Proceedings Chapte37
Chapter 11 Proceedings Chapter 11 Proceedings (Details) - USD ($) $ in Thousands | Apr. 15, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Apr. 22, 2016 | Dec. 31, 2015 | Nov. 02, 2015 | May. 01, 2015 |
Plan of Reorganization [Abstract] | |||||||
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 17,300 | ||||||
Liabilities Subject to Compromise [Abstract] | |||||||
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities | 2,607 | $ 55,587 | |||||
Liabilities Subject to Compromise, Accrued Capital Costs | 1,611 | 7,225 | |||||
Liabilities Subject to Compromise, Undistributed Oil and Gas Revenues | 1,881 | 11,989 | |||||
Liabilities Subject to Compromise, Debt and Accrued Interest | 905,629 | 905,629 | |||||
Liabilities Subject to Compromise, Other Liabilities | 6,244 | 3,958 | |||||
Liabilities Subject to Compromise | 917,972 | $ 984,388 | |||||
Reorganization Items [Abstract] | |||||||
Debtor Reorganization Items, Legal and Advisory Professional Fees | 13,553 | ||||||
Debtor Reorganization Items, Other Expense (Income) | (3,124) | ||||||
Reorganization Items | $ 10,429 | $ 0 | |||||
Subsequent Event [Member] | |||||||
Plan of Reorganization [Abstract] | |||||||
Plan of Reogranization, percentage of common stock lenders to receive net of backstop fee | 88.50% | ||||||
Plan of Reorganization, backstop fee | 7.50% | ||||||
Plan of Reorganization, Percentage of Common Stock existing equity holders to retain | 4.00% | ||||||
Plan or Reorganization, warrants existing equity holders | 30.00% | ||||||
Plan of Reorganization, Percentage of Common Stock Registration Rights Holder to receive | 5.00% | ||||||
Net Proceeds from Texegy Deal | $ 46,900 | ||||||
Fresh Start Accounting Threshold, Required Voting Shares | 50.00% | ||||||
Debtor-in-Possession Financing [Abstract] | |||||||
Debtor-in-Possession Financing, Amount Arranged | $ 75,000 | ||||||
Liabilities Subject to Compromise [Abstract] | |||||||
Liabilities Subject to Compromise, Debt and Accrued Interest | 905,629 | ||||||
Line of Credit [Member] | |||||||
Plan of Reorganization [Abstract] | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 330,000 | $ 375,000 | |||||
Line of Credit [Member] | New Credit Facility [Member] | Subsequent Event [Member] | |||||||
Plan of Reorganization [Abstract] | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 320,000 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property and Equipment | ||
Proved oil and gas properties | $ 5,997,030 | $ 5,972,666 |
Unproved oil and gas properties | 18,839 | 18,839 |
Furniture, fixtures, and other equipment | 44,252 | 44,252 |
Less - Accumulated depreciation, depletion, and amortization | (5,673,015) | (5,577,854) |
Property and Equipment, Net | 387,106 | 457,903 |
Accounts Payable and Accrued Liabilities | ||
Trade accounts payable | 24,731 | 0 |
Accrued operating expenses | 3,775 | 0 |
Accrued payroll costs | 4,059 | 0 |
Asset retirement obligation - current portion | 7,719 | 7,165 |
Accrued taxes | 3,022 | 0 |
Other payables | 17,320 | 498 |
Total accounts payable and accrued liabilities | $ 60,626 | $ 7,663 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | Apr. 15, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Total capitalized internal costs | $ 2,500 | $ 3,700 | ||
Discount rate for estimated future net revenues from proved properties | 10.00% | |||
Write-down of oil and gas properties | $ 77,732 | 502,569 | ||
Allowance for doubtful accounts receivable, current | 100 | $ 100 | ||
Accounts receivable, gross | 11,600 | 14,900 | ||
Accounts receivable related to joint interest owners | 2,900 | 4,900 | ||
Severance tax receivable | 1,900 | 1,200 | ||
Other receivables | $ 2,100 | 700 | ||
Percentage of working interest in wells | 100.00% | |||
Total amount of supervision fees charged to wells | $ 2,000 | $ 2,700 | ||
Inventories carried at cost | 400 | 600 | ||
Prepaid expenses | 3,500 | 4,400 | ||
Accounts Payable, Trade, Current, Before Reclass to Liabilities Subject to Compromise | 26,300 | |||
Accounts Payable, Trade, Current, Reclassed to Liabilities Subject to Compromise | 1,600 | |||
Accounts Payable, Other, Current, Before Reclass to Liabilities Subject to Compromise | 18,300 | 5,300 | ||
Accounts Payable, Other, Current, Reclassed to Liabilities Subject to Compromise | 1,000 | 4,800 | ||
Accrued legal and professional fees | 7,100 | |||
Restricted cash and cash equivalents included in other long term assets | $ 1,000 | $ 1,000 | ||
Minimum [Member] | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Estimated useful lives of property | 2 years | |||
Maximum [Member] | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Estimated useful lives of property | 20 years | |||
Subsequent Event [Member] | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Participation Interest Sold in Oil and Gas Properties | 75.00% | |||
Net Proceeds from Texegy Deal | $ 46,900 |
Share-Based Compensation (Detai
Share-Based Compensation (Details Textual) - USD ($) | Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 |
Share-Based Compensation (Details Textual) | |||
Tax shortfall in earnings related to share-based compensation | $ 0 | $ 1,200,000 | |
Stock-based compensation expenses | 770,000 | 879,000 | |
Share-based compensation (capitalized) | $ 200,000 | $ 300,000 | |
Employee Stock Option [Member] | |||
Share-Based Compensation (Details Textual) | |||
Expired stock option awards | (111,984) | ||
Options outstanding, end of period, shares | 1,218,406 | 1,218,406 | |
Stock option awards outstanding aggregate intrinsic value | $ 0 | $ 0 | |
Stock option awards exercisable aggregate intrinsic value | 0 | 0 | |
Stock option award unrecognized compensation cost | $ 0 | $ 0 | |
Remaining contract life of outstanding stock options | 3 years 10 months | ||
Remaining contract life of exercisable stock options | 3 years 10 months | ||
Restricted Stock Awards [Member] | |||
Restricted stock activity | |||
Restricted shares outstanding, beginning of period, shares | 1,487,076 | ||
Restricted shares outstanding, beginning of period, weighted average price | $ 8.94 | ||
Restricted shares granted, shares | 0 | ||
Restricted shares granted, weighted average price | $ 0 | ||
Restricted shares canceled, shares | (57,077) | ||
Restricted shares canceled, weighted average price | $ 9.21 | ||
Restricted shares vested, shares | (223,690) | ||
Restricted shares vested, weighted average price | $ 15.35 | ||
Restricted shares outstanding, end of period, shares | 1,206,309 | 1,206,309 | |
Restricted shares outstanding, end of period, weighted average price | $ 7.73 | $ 7.73 | |
Share-Based Compensation (Details Textual) | |||
Unrecognized compensation cost for stock grants | $ 2,300,000 | $ 2,300,000 | |
Weighted average remaining recognition period of cost for stock grants | 1 year 2 months | ||
Grant date fair value of shares vested | $ 3,400,000 | ||
Restricted Stock Units (RSUs) [Member] | |||
Restricted stock activity | |||
Restricted shares outstanding, beginning of period, shares | 591,400 | ||
Restricted shares outstanding, beginning of period, weighted average price | $ 9.20 | ||
Restricted shares granted, shares | 0 | 216,450 | |
Restricted shares granted, weighted average price | $ 0 | $ 1.98 | |
Restricted shares canceled, shares | 0 | ||
Restricted shares canceled, weighted average price | $ 0 | ||
Restricted shares vested, shares | (189,700) | ||
Restricted shares vested, weighted average price | $ 15.01 | ||
Restricted shares outstanding, end of period, shares | 401,700 | 401,700 | |
Restricted shares outstanding, end of period, weighted average price | $ 6.45 | $ 6.45 | |
Share-Based Compensation (Details Textual) | |||
Restricted Stock Awards Vesting Term | 3 years | ||
Unrecognized compensation cost for stock grants | $ 600,000 | $ 600,000 | |
Weighted average remaining recognition period of cost for stock grants | 1 year 5 months | ||
Required stock price for payout on performance based restricted stock units | $ 5.22 | ||
Percent of payout for performance based restricted stock unit grants | 100.00% | ||
Cash-settled Restricted Stock Unit (RSUs) [Member] | |||
Restricted stock activity | |||
Restricted shares granted, shares | 147,812 | ||
Share-Based Compensation (Details Textual) | |||
Restricted Stock Awards Vesting Term | 1 year | ||
Cash-Settled Restricted Stock Unit Liability | $ 100,000 | $ 100,000 | |
Minimum [Member] | Restricted Stock Awards [Member] | |||
Share-Based Compensation (Details Textual) | |||
Restricted Stock Awards Vesting Term | 1 year | ||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation (Details Textual) | |||
Percent of payout for performance based restricted stock unit grants | 0.00% | ||
Maximum Payout [Member] | Restricted Stock Awards [Member] | |||
Share-Based Compensation (Details Textual) | |||
Restricted Stock Awards Vesting Term | 3 years | ||
Maximum Payout [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation (Details Textual) | |||
Percent of payout for performance based restricted stock unit grants | 200.00% | ||
General and Administrative Expense [Member] | |||
Share-Based Compensation (Details Textual) | |||
Stock-based compensation expenses | $ 700,000 | $ 800,000 | |
Lease Operating Cost [Member] | |||
Share-Based Compensation (Details Textual) | |||
Stock-based compensation expenses | $ 100,000 | $ 100,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Basic EPS: | |||
Net income (loss) | $ (108,303) | $ (477,077) | $ (1,653,971) |
Income, share amounts | 44,672 | 44,232 | |
Earnings Per Share, Basic | $ (2.42) | $ (10.79) | |
Dilutive Securities: | |||
Dilutive RSA's, Shares | 0 | 0 | |
Dilutive RSU's, Shares | 0 | 0 | |
Diluted EPS: | |||
Net Income (Loss) Available to Common Stockholders, Diluted | $ (108,303) | $ (477,077) | |
Weighted Average Number of Shares Outstanding, Diluted | 44,672 | 44,232 | |
Earnings Per Share, Diluted | $ (2.42) | $ (10.79) | |
Stock Options [Member] | |||
Earnings Per Share (Textual) | |||
Antidilutive shares excluded from EPS, shares | 1,300 | 1,300 | |
Restricted Stock [Member] | |||
Earnings Per Share (Textual) | |||
Antidilutive shares excluded from EPS, shares | 300 | 700 | |
Restricted Stock Units (RSUs) [Member] | |||
Earnings Per Share (Textual) | |||
Contingently Issuable Shares Not Included in Diluted EPS | 800 | 1,200 |
Debt (Details)
Debt (Details) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2017 | Jun. 30, 2016 | Apr. 22, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 01, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2016 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015USD ($) | Nov. 02, 2015USD ($) | May. 01, 2015USD ($) | Oct. 03, 2012USD ($) | Nov. 30, 2011USD ($) | Nov. 25, 2009USD ($) | Jun. 01, 2007USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||||
Long-term Debt | $ 339,900 | $ 339,900 | $ 324,900 | ||||||||||||||||
Long-term Debt, Excluding Current Maturities | 0 | 0 | 0 | ||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Liabilities Subject to Compromise, Debt and Accrued Interest | 905,629 | 905,629 | 905,629 | ||||||||||||||||
Long-term Debt, Current Maturities | 339,900 | 339,900 | |||||||||||||||||
Interest expense including amortization of debt issuance costs | 8,066 | $ 18,228 | |||||||||||||||||
Capitalized interest on our unproved properties | 0 | 1,200 | |||||||||||||||||
DIP Facility [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Interest expense including amortization of debt issuance costs | 1,900 | ||||||||||||||||||
Debtor-in-Possession Financing | |||||||||||||||||||
Debtor-in-Possession Financing, Amount Currently Available | 30,000 | 30,000 | |||||||||||||||||
Debtor-in-Possession Financing, Borrowings Outstanding | 15,000 | 15,000 | |||||||||||||||||
Debtor-in-Possession Financing, Unused Borrowings | $ 45,000 | $ 45,000 | |||||||||||||||||
DIP Financing, percentage of applicable margin with LIBOR | 12.00% | ||||||||||||||||||
DIP Financing, percentage of applicable margin with ABR | 11.00% | ||||||||||||||||||
Debtor-in-Possession Financing, Fee on Unused Borrowings | 3.00% | 3.00% | |||||||||||||||||
Debtor-in-Possession Financing, Commitment Fees Paid | $ 900 | ||||||||||||||||||
Plan of Reorganization, backstop fee | 7.50% | 7.50% | |||||||||||||||||
DIP Financing, fee paid on drawdowns against DIP facility | 5.00% | 5.00% | |||||||||||||||||
DIP Financing, net proceeds after drawdown fee | 95.00% | 95.00% | |||||||||||||||||
Senior Notes [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Interest expense including amortization of debt issuance costs | $ 0 | 17,700 | |||||||||||||||||
Senior Notes [Member] | Senior Notes Due 2017 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Long-term Debt, Excluding Current Maturities | $ 0 | 0 | 0 | ||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Liabilities Subject to Compromise, Debt and Accrued Interest | 250,000 | 250,000 | 250,000 | ||||||||||||||||
Senior Notes | |||||||||||||||||||
Senior notes, issued | $ 250,000 | ||||||||||||||||||
Debt instrument, interest rate, stated percentage | 7.125% | ||||||||||||||||||
Percentage at which senior notes are issued, of par value | 100.00% | ||||||||||||||||||
Debt Instrument, Periodic Payment, Interest | $ 8,900 | ||||||||||||||||||
Senior Notes [Member] | Senior Notes Due 2020 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Long-term Debt, Excluding Current Maturities | 0 | 0 | 0 | ||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Liabilities Subject to Compromise, Debt and Accrued Interest | 225,000 | 225,000 | 225,000 | ||||||||||||||||
Senior Notes | |||||||||||||||||||
Senior notes, issued | $ 225,000 | ||||||||||||||||||
Debt instrument, interest rate, stated percentage | 8.875% | ||||||||||||||||||
Original unamortized issuance discount on senior notes | $ 3,600 | ||||||||||||||||||
Percentage at which senior notes are issued, of par value | 98.389% | ||||||||||||||||||
Effective Interest Rate On Senior Notes Including Discount | 9.125% | ||||||||||||||||||
Senior Notes [Member] | Senior Notes Due 2022 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Long-term Debt, Excluding Current Maturities | 0 | 0 | 0 | ||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Liabilities Subject to Compromise, Debt and Accrued Interest | 400,000 | 400,000 | 400,000 | ||||||||||||||||
Senior Notes | |||||||||||||||||||
Senior notes, issued | $ 400,000 | $ 250,000 | |||||||||||||||||
Debt instrument, interest rate, stated percentage | 7.875% | ||||||||||||||||||
Original unamortized issuance discount on senior notes | $ 2,100 | ||||||||||||||||||
Percentage at which senior notes are issued, of par value | 99.156% | ||||||||||||||||||
Effective Interest Rate On Senior Notes Including Discount | 8.00% | ||||||||||||||||||
Senior Notes [Member] | Additional Senior Notes Due 2022 [Member] | |||||||||||||||||||
Senior Notes | |||||||||||||||||||
Senior notes, issued | $ 150,000 | ||||||||||||||||||
Percentage at which senior notes are issued, of par value | 105.00% | ||||||||||||||||||
Effective Interest Rate On Senior Notes Including Discount | 6.993% | ||||||||||||||||||
Line of Credit [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Long-term Debt, Current Maturities | 324,900 | $ 324,900 | $ 324,900 | ||||||||||||||||
Debt Issuance Cost Write-Off | 2,400 | ||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 330,000 | $ 375,000 | |||||||||||||||||
Line of Credit, current commitment amount | $ 330,000 | $ 375,000 | |||||||||||||||||
Percentage of applicable margin with federal fund rate | 0.50% | ||||||||||||||||||
Percentage of applicable margin with LIBOR | 1.00% | ||||||||||||||||||
Lead bank's prime rate | 3.50% | ||||||||||||||||||
Commitment fee basis points for the credit facility | 0.50% | ||||||||||||||||||
Interest expense including amortization of debt issuance costs | $ 6,100 | 1,700 | |||||||||||||||||
Commitment fees included in interest expense, net | $ 200 | ||||||||||||||||||
Maximum level of cash dividends in any fiscal year | 15,000 | 15,000 | |||||||||||||||||
Equity Restrictions | $ 50,000 | $ 50,000 | |||||||||||||||||
Line of credit, required security interest on oil and gas properties | 95.00% | ||||||||||||||||||
Line of Credit [Member] | Minimum [Member] | Alternative Base Interest Rate [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Debt instrument escalating basis spread on base rate | 100 | ||||||||||||||||||
Line of Credit [Member] | Minimum [Member] | Eurodollar Interest Rate [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Debt Instrument Escalating Rates for Eurodollar Rate Loans | 200 | ||||||||||||||||||
Line of Credit [Member] | Maximum [Member] | Alternative Base Interest Rate [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Debt instrument escalating basis spread on base rate | 200 | ||||||||||||||||||
Line of Credit [Member] | Maximum [Member] | Eurodollar Interest Rate [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Debt Instrument Escalating Rates for Eurodollar Rate Loans | 300 | ||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Liabilities Subject to Compromise, Debt and Accrued Interest | $ 905,629 | ||||||||||||||||||
Debtor-in-Possession Financing | |||||||||||||||||||
Plan of Reogranization, percentage of common stock lenders to receive net of backstop fee | 88.50% | ||||||||||||||||||
Debtor-in-Possession Financing, Amount Arranged | $ 75,000 | ||||||||||||||||||
Plan of Reorganization, backstop fee | 7.50% | ||||||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Line of credit, covenant, working capital ratio, minimum | 1 | 0.5 | |||||||||||||||||
Debt instrument, covenant, interest coverage ratio, minimum | 2 | 1.30 | 1.15 | ||||||||||||||||
Line of Credit, Covenant, Senior Secured Leverage Ratio, Maximum | 2.5 | 3 | 3.5 | ||||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | New Credit Facility [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 320,000 | ||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 500,000 | ||||||||||||||||||
Line of Credit Facility, Non-Conforming Borrowing Base | 70,000 | ||||||||||||||||||
Line of Credit Facility, Conforming Borrowing Base | 250,000 | ||||||||||||||||||
Line of Credit, Covenant, Debt to EBITDA Ratio, Minimum | 3.5 | 6.5 | |||||||||||||||||
Line of Credit, Covenant, Current Ratio, Minimum | 1 | ||||||||||||||||||
Line of Credit, Covenant, Liquidity Requirement, Minimum | $ 10,000 | ||||||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | New Credit Facility [Member] | Minimum [Member] | Alternative Base Interest Rate [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Debt Instrument Escalating Basis Spread on Base Rate During Non-Conforming Period | 500 | ||||||||||||||||||
Debt Instrument Escalating Basis Spread on Base Rate After Non-Conforming Period | 200 | ||||||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | New Credit Facility [Member] | Minimum [Member] | Eurodollar Interest Rate [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Debt Instrument Escalating Rates for Eurodollar Rate Loans During Non-Conforming Period | 600 | ||||||||||||||||||
Debt Instrument Escalating Rates for Eurodollar Rate Loans After Non-Conforming Period | 300 | ||||||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | New Credit Facility [Member] | Maximum [Member] | Alternative Base Interest Rate [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Debt Instrument Escalating Basis Spread on Base Rate During Non-Conforming Period | 600 | ||||||||||||||||||
Debt Instrument Escalating Basis Spread on Base Rate After Non-Conforming Period | 300 | ||||||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | New Credit Facility [Member] | Maximum [Member] | Eurodollar Interest Rate [Member] | |||||||||||||||||||
Bank Borrowings and New Credit Facility | |||||||||||||||||||
Debt Instrument Escalating Rates for Eurodollar Rate Loans During Non-Conforming Period | 700 | ||||||||||||||||||
Debt Instrument Escalating Rates for Eurodollar Rate Loans After Non-Conforming Period | 400 |
Price-Risk Management Price-R43
Price-Risk Management Price-Risk Management (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) on Price Risk Derivatives, Net | $ 0 | $ 0.3 |
Derivative Liability, Fair Value, Gross Liability | 0 | |
Derivative, Fair Value, Net | 0 | |
Other Current Assets [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Senior Notes [Member] - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Oct. 03, 2012 | Nov. 25, 2009 | Jun. 01, 2007 |
Senior Notes Due 2017 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of senior notes | $ 13.4 | $ 23 | |||
Carrying value of senior notes | 250 | 250 | |||
Debt instrument, interest rate, stated percentage | 7.125% | ||||
Senior Notes Due 2020 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of senior notes | 9.9 | 21.4 | |||
Carrying value of senior notes | 225 | 225 | |||
Debt instrument, interest rate, stated percentage | 8.875% | ||||
Senior Notes Due 2022 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of senior notes | 20.9 | 34.5 | |||
Carrying value of senior notes | $ 400 | $ 400 | |||
Debt instrument, interest rate, stated percentage | 7.875% |
Asset Retirement Obligations 45
Asset Retirement Obligations Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Asset Retirement Obligation | $ 65,333 | $ 63,555 | |
Accretion expense | 1,291 | $ 1,365 | |
Liabilities incurred for new wells and facilities construction | 0 | ||
Reductions due to sold and abandoned wells | (1) | ||
Revisions in estimates | 488 | ||
Asset retirement obligation - current portion | $ 7,719 | $ 7,165 |
Condensed Consolidating Finan46
Condensed Consolidating Financial Information Condensed Consolidating Financial Information (Details) $ in Millions | Mar. 31, 2016USD ($) |
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Consolidation, Eliminations [Member] | Payable due from Swift Energy Operating do Swift Energy Company [Member] | |
Related Party Transaction [Line Items] | |
Accounts Payable, Related Parties, Current | $ 416.4 |
Consolidation, Eliminations [Member] | Payable due from Swift Energy Operating to Swift Energy International [Member] | |
Related Party Transaction [Line Items] | |
Accounts Payable, Related Parties, Current | 85.4 |
Consolidation, Eliminations [Member] | Receivables due to Swift Energy Operating from Swift Energy Alaska [Member] | |
Related Party Transaction [Line Items] | |
Accounts Receivable, Related Parties, Current | 6.1 |
Consolidation, Eliminations [Member] | Receivables due to Swift Energy Operating from Swift Energy Exploration Services [Member] | |
Related Party Transaction [Line Items] | |
Accounts Receivable, Related Parties, Current | $ 0.1 |
Commitments and Contingencies47
Commitments and Contingencies Commitments and Contingencies (Details Textual) $ in Millions | Mar. 31, 2016USD ($) |
DIP Facility [Member] | |
Debt Instrument [Line Items] | |
Debtor-in-Possession Financing, Borrowings Outstanding | $ 15 |