PrimeEnergy Resources (PNRG) 10-Q 15 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 11, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	PNRG
Entity Registrant Name	PRIMEENERGY CORP
Entity Central Index Key	56,868
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,280,138

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 12,010	$ 6,568
Restricted cash and cash equivalents	3,543	3,543
Accounts receivable, net	8,560	7,400
Other current assets	724	572
Total Current Assets	24,837	18,083
Property and Equipment, at cost
Oil and gas properties (successful efforts method), net	194,302	187,490
Field and office equipment, net	8,300	8,878
Total Property and Equipment, Net	202,602	196,368
Other Assets	337	203
Total Assets	227,776	214,654
Current Liabilities
Accounts payable	11,094	11,965
Accrued liabilities	30,575	8,184
Current portion of long-term debt	3,206	2,949
Current portion of asset retirements	1,563	1,563
Derivative Liability Short-term	946	2,547
Due to related parties	386
Total Current Liabilities	47,770	27,208
Long-Term Bank Debt	27,386	66,316
Asset Retirement Obligations	16,065	15,943
Derivative Liability Long-Term	44	1,092
Deferred Income Taxes	41,990	37,500
Other Long-Term Obligations	718	715
Total Liabilities	133,973	148,744
Commitments and Contingencies
Equity
Common stock, $.10 par value; Authorized: 4,000,000 shares, issued: 3,836,397 shares	383	383
Paid-in capital	8,439	8,313
Retained earnings	118,619	96,322
Treasury stock, at cost; 1,553,386 shares and 1,552,894 shares	(46,498)	(46,473)
Total Stockholders' Equity - PrimeEnergy	80,943	58,545
Non-controlling interest	12,860	7,335
Total Equity	93,803	65,880
Total Liabilities and Equity	$ 227,776	$ 214,654

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets - Unaudited (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	4,000,000	4,000,000
Common stock, shares issued	3,836,397	3,836,397
Treasury stock, shares	1,553,386	1,552,894

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - Unaudited - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Revenues
Oil and gas sales		$ 12,438	$ 7,130
Realized (loss) on derivative instruments, net		(227)
Field service income		3,761	4,224
Administrative overhead fees		1,581	1,757
Unrealized gain on derivative instruments, net		2,804
Other income		118	51
Total Revenues		20,475	13,162
Costs and Expenses
Lease operating expense		7,140	8,012
Field service expense		2,982	3,560
Depreciation, depletion, amortization and accretion on discounted liabilities		7,938	5,275
General and administrative expense		1,736	2,431
Total Costs and Expenses		19,796	19,278
Gain on Sale and Exchange of Assets		41,602	4,916
Income (Loss) Income from Operations		42,281	(1,200)
Interest Expense		605	868
Income (Loss) Before Provision for Income Taxes		41,676	(2,068)
Provision (Benefit) for Income Taxes		13,667	(890)
Net Income (Loss)		28,009	(1,178)
Less: Net Income Attributable to Non-Controlling Interests		5,712	682
Net Income (Loss) Income Attributable to PrimeEnergy		$ 22,297	$ (1,860)
Basic Income (Loss) Income Per Common Share		$ 9.77	$ (0.81)
Diluted Income (Loss) Income Per Common Share	[1]	$ 7.35	$ (0.81)
[1]	The effect of the 767,500 outstanding stock options is antidilutive for the three months ended March 31, 2016 due to a net loss reported for the period.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - Unaudited - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net Income (loss)	$ 28,009	$ (1,178)
Other Comprehensive Income, net of taxes:
Changes in fair value of hedge positions, net of taxes of $0 and $(2), respectively		5
Total other comprehensive loss		5
Comprehensive Income (Loss)	28,009	(1,173)
Less: Comprehensive Income Attributable to Non-Controlling Interest	5,712	682
Comprehensive Income (Loss) Attributable to PrimeEnergy	$ 22,297	$ (1,855)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income - Unaudited (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Changes in fair value of hedge positions, tax	$ 0	$ (2)

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Equity - Unaudited - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]	Total Stockholders' Equity - PrimeEnergy [Member]	Non-Controlling Interest [Member]
Balance at Dec. 31, 2016	$ 65,880	$ 383	$ 8,313	$ 96,322	$ 0	$ (46,473)	$ 58,545	$ 7,335
Balance, shares at Dec. 31, 2016	3,836,397	3,836,397
Repurchase 492 shares of common stock	$ (25)				0	(25)	(25)
Net income	28,009			22,297	0		22,297	5,712
Repurchase of non-controlling interests	(61)		126		0		126	(187)
Balance at Mar. 31, 2017	$ 93,803	$ 383	$ 8,439	$ 118,619	$ 0	$ (46,498)	$ 80,943	$ 12,860
Balance, shares at Mar. 31, 2017	3,836,397	3,836,397

Condensed Consolidated Stateme8

Condensed Consolidated Statement of Equity - Unaudited (Parenthetical)	3 Months Ended
	Mar. 31, 2017shares
Repurchase of common stock, shares	492
Treasury Stock [Member]
Repurchase of common stock, shares	492
Total Stockholders' Equity - PrimeEnergy [Member]
Repurchase of common stock, shares	492

Condensed Consolidated Stateme9

Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows from Operating Activities:
Net Income (loss)	$ 28,009	$ (1,178)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion, amortization and accretion on discounted liabilities	7,938	5,275
Gain on sale of properties	(41,602)	(4,916)
Unrealized gain on derivative instruments, net	(2,804)
Provision (benefit) for deferred income taxes	4,492	(290)
Changes in assets and liabilities:
Increase in accounts receivable	(1,160)	(67)
Decrease in due from related parties		171
Increase in due to related parties	386
Decrease in other assets	(152)	712
(Decrease) in accounts payable	(871)	(2,814)
Increase in accrued liabilities	22,391	4,268
Net Cash Provided by Operating Activities	16,627	1,161
Cash Flows from Investing Activities:
Capital expenditures, including exploration expense	(18,866)	(7,920)
Proceeds from sale of properties and equipment	46,438	4,916
Net Cash Provided by (Used in) Investing Activities	27,572	(3,004)
Cash Flows from Financing Activities:
Purchase of stock for treasury	(25)	(485)
Purchase of non-controlling interests	(60)	(179)
Proceeds from long-term bank debt and other long-term obligations		9,000
Repayment of long-term bank debt and other long-term obligations	(38,672)	(2,754)
Net Cash (Used in) Provided by Financing Activities	(38,757)	5,582
Net Increase in Cash and Cash Equivalents	5,442	3,739
Cash and Cash Equivalents at the Beginning of the Period	6,568	9,750
Cash and Cash Equivalents at the End of the Period	12,010	13,489
Supplemental Disclosures:
Income taxes paid	200	91
Interest paid	$ 451	$ 806

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	(1) Basis of Presentation: The accompanying condensed consolidated financial statements of PrimeEnergy Corporation (“PEC” or the “Company”) have not been audited by independent public accountants. Pursuant to applicable Securities and Exchange Commission (“SEC”) rules and regulations, the accompanying interim financial statements do not include all disclosures presented in annual financial statements and the reader should refer to the Company’s Form 10-K Recently Issued Accounting Pronouncements In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, 2016-15 2016-15 The FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue recognition 932-605. Extractives – Oil and Gas Revenue Recognition. 2014-09 2015-14, Effective Date, The FASB issued ASU 2016-02, Leases (Topic 842). right-of-use In January 2017, the FASB issued ASU No. 2017-03,

Acquisitions and Dispositions

Acquisitions and Dispositions	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Acquisitions and Dispositions	(2) Acquisitions and Dispositions: Historically the Company has repurchased the interests of the partners and trust unit holders in the oil and gas limited partnerships (the “Partnerships”) and the asset and business income trusts (the “Trusts”) managed by the Company as general partner and as managing trustee, respectively. The Company purchased such interests in amounts totaling $60,000 and $1,000 for the three months ended March 31, 2017 and 2016, respectively. During the first quarter of 2017, the Company sold or farmed out interests in certain non-core

Restricted Cash and Cash Equiva

Restricted Cash and Cash Equivalents	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents [Abstract]
Restricted Cash and Cash Equivalents	(3) Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents include $3.54 million at March 31, 2017 and December 31, 2016 of cash primarily pertaining to oil and gas revenue payments. There were corresponding accounts payable recorded at March 31, 2017 and December 31, 2016 for these liabilities. Both the restricted cash and the accounts payable are classified as current on the accompanying condensed consolidated balance sheets.

Additional Balance Sheet Inform

Additional Balance Sheet Information	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Additional Balance Sheet Information	(4) Additional Balance Sheet Information: Certain balance sheet amounts are comprised of the following: (Thousands of dollars) March 31, 2017 December 31, 2016 Accounts Receivable Joint interest billing $ 3,288 $ 2,345 Trade receivables 1,209 1,070 Oil and gas sales 4,232 4,078 Other 128 204 8,857 7,697 Less: Allowance for doubtful accounts (297 ) (297 ) Total $ 8,560 $ 7,400 Accounts Payable: Trade $ 3,037 $ 3,967 Royalty and other owners 6,655 5,909 Partner advances 592 592 Prepaid drilling deposits 48 83 Other 762 1,414 Total $ 11,094 $ 11,965 Accrued Liabilities Compensation and related expenses $ 6,435 $ 2,295 Property costs 10,707 3,317 Income Tax 10,962 1,988 Other 2,471 584 Total $ 30,575 $ 8,184

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment	(5) Property and Equipment: Property and equipment at March 31, 2017 and December 31, 2016 consisted of the following: (Thousands of dollars) March 31, 2017 December 31, 2016 Proved oil and gas properties, at cost $ 431,827 $ 417,821 Less: Accumulated depletion and depreciation (237,525 ) (230,331 ) Oil and Gas Properties, Net $ 194,302 $ 187,490 Field and office equipment $ 26,562 $ 26,902 Less: Accumulated depreciation (18,262 ) (18,024 ) Field and Office Equipment, Net $ 8,300 $ 8,878 Total Property and Equipment, Net $ 202,602 $ 196,368

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Long-Term Debt	(6) Long-Term Debt: Bank Debt: Effective July 30, 2010 the Company entered into a Second Amended and Restated Credit Agreement between Compass Bank as agent and a syndicated group of lenders (“Credit Agreement”). The Credit Agreement had a revolving line of credit and letter of credit facility of up to $250 million with a final maturity date of July 30, 2017. The credit facility was secured by substantially all of the Company’s oil and gas properties. The credit facility was subject to a borrowing base determined by the lenders taking into consideration the estimated value of PEC’s oil and gas properties in accordance with the lenders’ customary practices for oil and gas loans. On February 15, 2017, the Company and its lenders entered into a Third Amended and Restated Credit Agreement (the “ 2017 Credit Agreement”) with a maturity date of February 15, 2021. The Second Amended and Restated Credit Agreement and subsequent amendments were incorporated into the 2017 Credit Agreement. Pursuant to the terms and conditions of the 2017 Credit Agreement, the Company has a revolving line of credit and letter of credit facility of up to $300 million subject to a borrowing base that is determined semi-annually by the lenders based upon the Company’s financial statements and the estimated value of the Company’s oil and gas properties, in accordance with the Lenders’ customary practices for oil and gas loans. The credit facility is secured y substantially all of the Company’s oil and gas properties. Currently, the Company’s borrowing base is $75 million. The 2017 Credit Agreement includes terms and covenants that require the Company to maintain a minimum current ratio, total indebtedness to EBITDAX (earnings before depreciation, depletion, amortization, taxes, interest expense and exploration costs) ratio and interest coverage ratio, as defined, and restrictions are placed on the payment of dividends, the amount of treasury stock the Company may purchase, commodity hedge agreements, and loans and investments in its consolidated subsidiaries and limited partnerships. At March 31, 2017, the Company had a total of $24.8 million of borrowings outstanding under its revolving credit facility at a weighted-average interest rate of 4.68% and $50.2 million available for future borrowings. The combined weighted average interest rate paid on outstanding bank borrowings subject to base rate and LIBO interest was 5.32% for the three months ended March 31, 2017 as compared to 3.61% for the three months ended March 31, 2016. The Company’s borrowings under this credit facility approximates fair value because the interest rates are variable and reflective of market rates. The Company entered into interest rate hedge agreements to help manage interest rate exposure. These contracts include interest rate swaps. Interest rate swap transactions generally involve the exchange of fixed and floating rate interest payment obligations without the exchange of the underlying principal amounts. In July 2012, the Company entered into interest swap agreements for a period of two years, which commenced in January 2014, related to $75 million of the Company’s bank debt resulting in a LIBO fixed rate of 0.563% and terminated in January 2016. The Company recorded interest expense and paid $7,070 related to the settlement of interest rate swaps for the three months ended March 31, 2016. Equipment Loans: On July 31, 2013, the Company entered into a $10.0 million Loan and Security Agreement with JP Morgan Chase Bank (“Equipment Loan”). The Equipment Loan is secured by a portion of the Company’s field service equipment, carries an interest rate of 3.95% per annum, requires monthly payments (principal and interest) of $184,000, and has a final maturity date of July 31, 2018. As of March 31, 2017, the Company had a total of $3.03 million outstanding on this Equipment Loan. On July 29, 2014, the Company entered into additional equipment financing facilities (“Additional Equipment Loans”) totaling $6.0 million with JP Morgan Chase Bank. In August 2014, the Company drew down $4.8 million of this facility that is secured by field service equipment, carries an interest rate of 3.40% per annum, requires monthly payments (principal and interest) of $87,800, and has a final maturity date of July 31, 2019. The remaining $1.2 million under the Additional Equipment Loans was available for interim draws to finance the acquisition of any future field service equipment. In December 2014, the Company made an interim draw of an additional $0.5 million on this facility that is secured by recently purchased field service equipment. Interim draws on this facility carried a floating interest rate, payable monthly at the LIBO published rate plus 2.50% and on June 26, 2015 converted into a fixed term loan, with a rate of 3.50% and requiring monthly payments (principal and interest) of $8,700 with a final maturity date of June 26, 2020. As of March 31, 2017, the Company had a total of $2.76 million outstanding on the Additional Equipment Loans. The Company determined these loans are Level 3 liabilities in the fair-value hierarchy and estimated their fair value as $5.5 million and $8.6 million at March 31, 2017 and 2016, respectively, using a discounted cash flow model.

Other Long-Term Obligations and

Other Long-Term Obligations and Commitments	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Other Long-Term Obligations and Commitments	(7) Other Long-Term Obligations and Commitments: Operating Leases: The Company has several non-cancelable (Thousands of dollars) Operating Leases 2017 $ 597 2018 59 Total minimum payments $ 656 Rent expense for office space for the three months ended March 31, 2017 and 2016 was $181,000 and $207,000, respectively. Asset Retirement Obligation: A reconciliation of the liability for plugging and abandonment costs for the three months ended March 31, 2017 is as follows: (Thousands of dollars) Asset retirement obligation – December 31, 2016 $ 17,505 Liabilities incurred 30 Liabilities settled (99 ) Accretion expense 192 Asset retirement obligation – March 31, 2017 $ 17,628 The Company’s liability is determined using significant assumptions, including current estimates of plugging and abandonment costs, annual inflation of these costs, the productive life of wells and a risk-adjusted interest rate. Changes in any of these assumptions can result in significant revisions to the estimated asset retirement obligation. Revisions to the asset retirement obligation are recorded with an offsetting change to producing properties, resulting in prospective changes to depreciation, depletion and amortization expense and accretion of discount. Because of the subjectivity of assumptions and the relatively long life of most of the Company’s wells, the costs to ultimately retire the wells may vary significantly from previous estimates.

Contingent Liabilities

Contingent Liabilities	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingent Liabilities	(8) Contingent Liabilities: The Company, as managing general partner of the affiliated Partnerships, is responsible for all Partnership activities, including the drilling of development wells and the production and sale of oil and gas from productive wells. The Company also provides the administration, accounting and tax preparation work for the Partnerships, and is liable for all debts and liabilities of the affiliated Partnerships, to the extent that the assets of a given limited Partnership are not sufficient to satisfy its obligations. The Company is subject to environmental laws and regulations. Management believes that future expenses, before recoveries from third parties, if any, will not have a material effect on the Company’s financial condition. This opinion is based on expenses incurred to date for remediation and compliance with laws and regulations, which have not been material to the Company’s results of operations. From time to time, the Company is party to certain legal actions arising in the ordinary course of business. While the outcome of these events cannot be predicted with certainty, management does not expect these matters to have a materially adverse effect on the financial position or results of operations of the Company.

Stock Options and Other Compens

Stock Options and Other Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options and Other Compensation	(9) Stock Options and Other Compensation: In May 1989, non-statutory

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	(10) Related Party Transactions: The Company, as managing general partner or managing trustee, makes an annual offer to repurchase the interests of the partners and trust unit holders in certain of the Partnerships or Trusts. The Company purchased such interests in amounts totaling $60,000 and $1,000 for the three months ended March 31, 2017 and 2016, respectively. Receivables from related parties consist of reimbursable general and administrative costs, lease operating expenses and reimbursement for property development and related costs. These receivables are due from joint venture partners, which may include members of the Company’s Board of Directors. Payables owed to related parties primarily represent receipts collected by the Company as agent for the joint venture partners, which may include members of the Company’s Board of Directors, for oil and gas sales net of expenses.

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Financial Instruments	(11) Financial Instruments Fair Value Measurements: Authoritative guidance on fair value measurements defines fair value, establishes a framework for measuring fair value and stipulates the related disclosure requirements. The Company follows a three-level hierarchy, prioritizing and defining the types of inputs used to measure fair value. The fair values of the Company’s interest rate swaps, natural gas and crude oil price collars and swaps are designated as Level 3. The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2017 and December 31, 2016: March 31, 2017 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 213 $ 213 Total assets $ — $ — $ 213 $ 213 Liabilities Commodity derivative contracts $ — $ — $ (990 ) $ (990 ) Total liabilities $ — $ — $ (990 ) $ (990 ) December 31, 2016 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 57 $ 57 Total assets $ — $ — $ 57 $ 57 Liabilities Commodity derivative contract $ — $ — $ (3,639 ) $ (3,639 ) Total liabilities $ — $ — $ (3,639 ) $ (3,639 ) The derivative contracts were measured based on quotes from the Company’s counterparties. Such quotes have been derived using valuation models that consider various inputs including current market and contractual prices for the underlying instruments, quoted forward prices for natural gas and crude oil, volatility factors and interest rates, such as a LIBOR curve for a similar length of time as the derivative contract term as applicable. These estimates are verified using comparable NYMEX futures contracts or are compared to multiple quotes obtained from counterparties for reasonableness. The significant unobservable inputs for Level 3 derivative contracts include basis differentials and volatility factors. An increase (decrease) in these unobservable inputs would result in an increase (decrease) in fair value, respectively. The Company does not have access to the specific assumptions used in its counterparties’ valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided. The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2017. (Thousands of dollars) Net Liabilities – December 31, 2016 $ (3,582 ) Total realized and unrealized (gains) losses: Included in earnings (a) 2577 Included in other comprehensive loss — Purchases, sales, issuances and settlements 228 Net assets (liabilities) – March 31, 2017 $ (777 ) a) Derivative instruments are reported in revenues as realized gain/loss and on a separately reported line item captioned unrealized gain/loss on derivative instruments, and interest rate swap instruments are reported as an increase or reduction to interest expense. Derivative Instruments: The Company is exposed to commodity price and interest rate risk, and management considers periodically the Company’s exposure to cash flow variability resulting from the commodity price changes and interest rate fluctuations. Futures, swaps and options are used to manage the Company’s exposure to commodity price risk inherent in the Company’s oil and gas production operations. The Company does not apply hedge accounting to any of its commodity based derivatives. Both realized and unrealized gains and losses associated with commodity derivative instruments are recognized in earnings. Interest rate swap derivatives are treated as cash-flow hedges and are used to fix our floating interest rates on existing debt. Settlements of the swaps, which began in January 2014 and concluded in January 2016, was recognized within interest expense. There were no remaining interest rate swaps for the periods ending March 31,2017 and December 31, 2016.The value of interest rate swaps if applicable, would be recorded in accumulated other comprehensive loss, net of tax. The following table sets forth the effect of derivative instruments on the consolidated balance sheets at March 31, 2017 and December 31, 2016: Fair Value (Thousands of dollars) Balance Sheet Location March 31, December 31, Asset Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contracts Other Assets $ 28 $ — Natural gas commodity contracts Other Assets $ 185 $ 57 Total $ 213 $ 57 Liability Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contracts Derivative liability short-term (205 ) (1,065 ) Natural gas commodity contracts Derivative liability short-term (741 ) (1,482 ) Natural gas commodity contracts Derivative liability long-term (20 ) (463 ) Crude oil commodity contracts Derivative liability long-term (24 ) (629 ) Total $ (990 ) $ (3,639 ) Total derivative instruments $ (777 ) $ (3,582 ) The following table sets forth the effect of derivative instruments on the consolidated statements of operations for the three month period ended March 31, 2017 and 2016: Location of gain/loss recognized in income Amount of gain/loss recognized in income (Thousands of dollars) 2017 2016 Derivative designated as cash-flow hedge instruments: Interest rate swap contracts Interest expense $ — $ (7 ) Derivatives not designated as cash-flow hedge instruments: Natural gas commodity contracts Unrealized (loss) gain on derivative instruments, net 1,313 — Crude oil commodity contracts Unrealized (loss) gain on derivative instruments, net 1,491 — Natural gas commodity contracts Realized gain (loss) on derivative instruments, net (149 ) — Crude oil commodity contracts Realized gain (loss) on derivative instruments, net (78 ) — $ 2,577 $ (7 )

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Earnings Per Share	(12) Earnings Per Share: Basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect per share amounts that would have resulted if dilutive potential common stock had been converted to common stock in gain periods. The following reconciles amounts reported in the financial statements: Three Months Ended March 31, 2017 2016 Net Income Weighted Average Number of Shares Outstanding Per Share Amount Net Income Weighted Average Number of Shares Outstanding Per Share Amount Basic $ 22,297 2,283,011 $ 9.77 $ (1,860 ) 2,295,177 $ (0.81 ) Effect of dilutive securities: Options — 752,529 — 749,585 Diluted (a) $ 22,297 3,035,540 $ 7.35 $ (1,860 ) 3,044,762 $ (0.81 ) (a) The effect of the 767,500 outstanding stock options is antidilutive for the three months ended March 31, 2016 due to a net loss reported for the period.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, 2016-15 2016-15 The FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue recognition 932-605. Extractives – Oil and Gas Revenue Recognition. 2014-09 2015-14, Effective Date, The FASB issued ASU 2016-02, Leases (Topic 842). right-of-use In January 2017, the FASB issued ASU No. 2017-03,

Additional Balance Sheet Info23

Additional Balance Sheet Information (Tables)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Components of Balance Sheet Amounts	Certain balance sheet amounts are comprised of the following: (Thousands of dollars) March 31, 2017 December 31, 2016 Accounts Receivable Joint interest billing $ 3,288 $ 2,345 Trade receivables 1,209 1,070 Oil and gas sales 4,232 4,078 Other 128 204 8,857 7,697 Less: Allowance for doubtful accounts (297 ) (297 ) Total $ 8,560 $ 7,400 Accounts Payable: Trade $ 3,037 $ 3,967 Royalty and other owners 6,655 5,909 Partner advances 592 592 Prepaid drilling deposits 48 83 Other 762 1,414 Total $ 11,094 $ 11,965 Accrued Liabilities Compensation and related expenses $ 6,435 $ 2,295 Property costs 10,707 3,317 Income Tax 10,962 1,988 Other 2,471 584 Total $ 30,575 $ 8,184

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property and equipment	Property and equipment at March 31, 2017 and December 31, 2016 consisted of the following: (Thousands of dollars) March 31, 2017 December 31, 2016 Proved oil and gas properties, at cost $ 431,827 $ 417,821 Less: Accumulated depletion and depreciation (237,525 ) (230,331 ) Oil and Gas Properties, Net $ 194,302 $ 187,490 Field and office equipment $ 26,562 $ 26,902 Less: Accumulated depreciation (18,262 ) (18,024 ) Field and Office Equipment, Net $ 8,300 $ 8,878 Total Property and Equipment, Net $ 202,602 $ 196,368

Other Long-Term Obligations a25

Other Long-Term Obligations and Commitments (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Summary of Future Minimum Lease Payments for Non-Cancelable Operating Leases	The Company has several non-cancelable (Thousands of dollars) Operating Leases 2017 $ 597 2018 59 Total minimum payments $ 656
Reconciliation of Liability for Plugging and Abandonment Costs	A reconciliation of the liability for plugging and abandonment costs for the three months ended March 31, 2017 is as follows: (Thousands of dollars) Asset retirement obligation – December 31, 2016 $ 17,505 Liabilities incurred 30 Liabilities settled (99 ) Accretion expense 192 Asset retirement obligation – March 31, 2017 $ 17,628

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2017 and December 31, 2016: March 31, 2017 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 213 $ 213 Total assets $ — $ — $ 213 $ 213 Liabilities Commodity derivative contracts $ — $ — $ (990 ) $ (990 ) Total liabilities $ — $ — $ (990 ) $ (990 ) December 31, 2016 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 57 $ 57 Total assets $ — $ — $ 57 $ 57 Liabilities Commodity derivative contract $ — $ — $ (3,639 ) $ (3,639 ) Total liabilities $ — $ — $ (3,639 ) $ (3,639 )
Schedule of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3	The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2017. (Thousands of dollars) Net Liabilities – December 31, 2016 $ (3,582 ) Total realized and unrealized (gains) losses: Included in earnings (a) 2577 Included in other comprehensive loss — Purchases, sales, issuances and settlements 228 Net assets (liabilities) – March 31, 2017 $ (777 ) a) Derivative instruments are reported in revenues as realized gain/loss and on a separately reported line item captioned unrealized gain/loss on derivative instruments, and interest rate swap instruments are reported as an increase or reduction to interest expense.
Effect of Derivative Instruments on Consolidated Balance Sheets	The following table sets forth the effect of derivative instruments on the consolidated balance sheets at March 31, 2017 and December 31, 2016: Fair Value (Thousands of dollars) Balance Sheet Location March 31, December 31, Asset Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contracts Other Assets $ 28 $ — Natural gas commodity contracts Other Assets $ 185 $ 57 Total $ 213 $ 57 Liability Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contracts Derivative liability short-term (205 ) (1,065 ) Natural gas commodity contracts Derivative liability short-term (741 ) (1,482 ) Natural gas commodity contracts Derivative liability long-term (20 ) (463 ) Crude oil commodity contracts Derivative liability long-term (24 ) (629 ) Total $ (990 ) $ (3,639 ) Total derivative instruments $ (777 ) $ (3,582 )
Effect of Derivative Instruments on Consolidated Statements of Operations	The following table sets forth the effect of derivative instruments on the consolidated statements of operations for the three month period ended March 31, 2017 and 2016: Location of gain/loss recognized in income Amount of gain/loss recognized in income (Thousands of dollars) 2017 2016 Derivative designated as cash-flow hedge instruments: Interest rate swap contracts Interest expense $ — $ (7 ) Derivatives not designated as cash-flow hedge instruments: Natural gas commodity contracts Unrealized (loss) gain on derivative instruments, net 1,313 — Crude oil commodity contracts Unrealized (loss) gain on derivative instruments, net 1,491 — Natural gas commodity contracts Realized gain (loss) on derivative instruments, net (149 ) — Crude oil commodity contracts Realized gain (loss) on derivative instruments, net (78 ) — $ 2,577 $ (7 )

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings (Loss) per Share	The following reconciles amounts reported in the financial statements: Three Months Ended March 31, 2017 2016 Net Income Weighted Average Number of Shares Outstanding Per Share Amount Net Income Weighted Average Number of Shares Outstanding Per Share Amount Basic $ 22,297 2,283,011 $ 9.77 $ (1,860 ) 2,295,177 $ (0.81 ) Effect of dilutive securities: Options — 752,529 — 749,585 Diluted (a) $ 22,297 3,035,540 $ 7.35 $ (1,860 ) 3,044,762 $ (0.81 ) (a) The effect of the 767,500 outstanding stock options is antidilutive for the three months ended March 31, 2016 due to a net loss reported for the period.

Acquisitions and Dispositions -

Acquisitions and Dispositions - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Business Acquisition [Line Items]
Purchase of non-controlling interests	$ 61
Proceeds from sale of property and equipment	46,400
Partnership And Trust [Member]
Business Acquisition [Line Items]
Purchase of non-controlling interests	$ 60	$ 1

Restricted Cash and Cash Equi29

Restricted Cash and Cash Equivalents - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents [Abstract]
Restricted cash and cash equivalents	$ 3,543	$ 3,543

Additional Balance Sheet Info30

Additional Balance Sheet Information - Components of Balance Sheet Amounts (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts Receivable:
Joint interest billings	$ 3,288	$ 2,345
Trade receivables	1,209	1,070
Oil and gas sales	4,232	4,078
Other	128	204
Accounts Receivable, Gross	8,857	7,697
Less: Allowance for doubtful accounts	(297)	(297)
Total	8,560	7,400
Accounts Payable:
Trade	3,037	3,967
Royalty and other owners	6,655	5,909
Partner advances	592	592
Prepaid drilling deposits	48	83
Other	762	1,414
Total	11,094	11,965
Accrued Liabilities:
Compensation and related expenses	6,435	2,295
Property costs	10,707	3,317
Income tax	10,962	1,988
Other	2,471	584
Total	$ 30,575	$ 8,184

Property and Equipment - Compon

Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Proved oil and gas properties, at cost	$ 431,827	$ 417,821
Less: Accumulated depletion and depreciation	(237,525)	(230,331)
Oil and Gas Properties, Net	194,302	187,490
Field and office equipment	26,562	26,902
Less: Accumulated depreciation	(18,262)	(18,024)
Field and Office Equipment, Net	8,300	8,878
Total Property and Equipment, Net	$ 202,602	$ 196,368

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) - USD ($)	Feb. 15, 2017	Jun. 26, 2015	Dec. 31, 2014	Aug. 31, 2014	Mar. 31, 2017	Mar. 31, 2016	Jul. 29, 2014	Jul. 31, 2013
Credit Agreement [Member]
Debt Instrument [Line Items]
Maturity date of amended and restated credit agreement					Jul. 30, 2017
Outstanding borrowings under revolving credit facility					$ 24,800,000
Weighted-average interest rate of borrowings					4.68%
Credit facility remaining borrowing capacity					$ 50,200,000
Interest swap agreements period					2 years
Settlement of interest rate swaps						$ 7,070
Additional Equipment Loan [Member]
Debt Instrument [Line Items]
Credit facility remaining borrowing capacity				$ 1,200,000
Company's bank debt					$ 2,760,000
Equipment Loan, face amount							$ 6,000,000
Percentage for base rate loans at the prime rate				3.40%
Equipment Loan, monthly payment				$ 87,800
Equipment Loan, maturity date					Jul. 31, 2019
Additional equipment Loan, drawings			$ 500,000	$ 4,800,000
Equipment Loan, interest rate description					Interim draws on this facility carried a floating interest rate, payable monthly at the LIBO published rate plus 2.50% and on June 26, 2015 converted into a fixed term loan, with a rate of 3.50% and requiring monthly payments
Fair Value Measurements, Valuation Techniques					discounted cash flow model
Additional Equipment Loan [Member] | Significant Unobservable Inputs (Level 3) [Member]
Debt Instrument [Line Items]
Debt Instrument, Fair Value Disclosure					$ 5,500,000	$ 8,600,000
2017 Credit Agreement [Member]
Debt Instrument [Line Items]
Credit facility borrowing capacity	$ 300,000,000
Maturity date of amended and restated credit agreement	Feb. 15, 2021
Credit agreement date	Feb. 15, 2017
Credit facility borrowing base	$ 75,000,000
Revolving Line of Credit and Letter of Credit Facility [Member] | Credit Agreement [Member]
Debt Instrument [Line Items]
Credit facility borrowing capacity					$ 250,000,000
Fixed Term Loan [Member] | Additional Equipment Loan [Member]
Debt Instrument [Line Items]
Equipment Loan, monthly payment		$ 8,700
Equipment Loan, maturity date					Jun. 26, 2020
Equipment Loan, Interest rate on fixed loans					3.50%
Base Rate And Libor [Member] | Credit Agreement [Member]
Debt Instrument [Line Items]
Debt instrument basis weighted average interest rate spread on variable rate					5.32%	3.61%
London Interbank Offered Rate (LIBOR) [Member] | Additional Equipment Loan [Member]
Debt Instrument [Line Items]
LIBOR rate loans					2.50%
Equipment Loan [Member]
Debt Instrument [Line Items]
Company's bank debt					$ 3,030,000
Equipment Loan, face amount								$ 10,000,000
Percentage for base rate loans at the prime rate					3.95%
Equipment Loan, monthly payment					$ 184,000
Equipment Loan, maturity date					Jul. 31, 2018
Interest Rate Swap [Member] | Credit Agreement [Member]
Debt Instrument [Line Items]
Swap agreement date					2012-07
Commenced date					2014-01
Termination date					2016-01
Company's bank debt					$ 75,000,000
Interest Rate Swap [Member] | London Interbank Offered Rate (LIBOR) [Member] | Credit Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate					0.563%

Other Long-Term Obligations a33

Other Long-Term Obligations and Commitments - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Lease period description	Term of more than one year
Rent expense for office space	$ 181	$ 207

Other Long-Term Obligations a34

Other Long-Term Obligations and Commitments - Summary of Future Minimum Lease Payments for Non-Cancelable Operating Leases (Detail) $ in Thousands	Mar. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,017	$ 597
2,018	59
Total minimum payments	$ 656

Other Long-Term Obligations a35

Other Long-Term Obligations and Commitments - Reconciliation of Liability for Plugging and Abandonment Costs (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Asset retirement obligation at beginning of period	$ 17,505
Liabilities incurred	30
Liabilities settled	(99)
Accretion expense	192
Asset retirement obligation at end of period	$ 17,628

Stock Options and Other Compe36

Stock Options and Other Compensation - Additional Information (Detail) - Nonstatutory Stock Options [Member]	Mar. 31, 2017$ / sharesshares	Mar. 31, 2016$ / sharesshares	May 31, 1989Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, shares | shares	767,500	767,500
Options exercisable, shares | shares	767,500	767,500
Number of key executive officers to whom non-statutory stock options granted | Officers			4
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average exercise price | $ / shares	$ 1	$ 1
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average exercise price | $ / shares	$ 1.25	$ 1.25

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Related Party Transaction [Line Items]
Purchase of non-controlling interests	$ 61
Partnership And Trust [Member]
Related Party Transaction [Line Items]
Purchase of non-controlling interests	$ 60	$ 1

Financial Instruments - Schedul

Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Derivative assets	$ 213	$ 57
Liabilities
Derivative liabilities	(990)	(3,639)
Fair Value, Measurements, Recurring [Member]
Assets
Derivative assets	213	57
Liabilities
Derivative liabilities	(990)	(3,639)
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Derivative assets	213	57
Liabilities
Derivative liabilities	(990)	(3,639)
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Derivative assets	213	57
Liabilities
Derivative liabilities	(990)	(3,639)
Significant Unobservable Inputs (Level 3) [Member] | Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Derivative assets	213	57
Liabilities
Derivative liabilities	$ (990)	$ (3,639)

Financial Instruments - Sched39

Financial Instruments - Schedule of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 (Detail) - Significant Unobservable Inputs (Level 3) [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net (liabilities) assets at beginning of period	$ (3,582)
Total realized and unrealized gains (losses):
Included in earnings	2,577	[1]
Included in other comprehensive income (loss)	0
Purchases, sales, issuances and settlements	228
Net liabilities at end of period	$ (777)
[1]	Derivative instruments are reported in revenues as realized gain/loss and on a separately reported line item captioned unrealized gain/loss on derivative instruments, and interest rate swap instruments are reported as an increase or reduction to interest expense.

Financial Instruments - Effect

Financial Instruments - Effect of Derivative Instruments on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative assets	$ 213	$ 57
Derivative liabilities	(990)	(3,639)
Total derivative instruments	(777)	(3,582)
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	28
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	185	57
Derivatives Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Derivative Liability Short-Term [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	(205)	(1,065)
Derivatives Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Derivative liability Long Term [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	(24)	(629)
Derivatives Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Derivative Liability Short-Term [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	(741)	(1,482)
Derivatives Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Derivative liability Long Term [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	$ (20)	$ (463)

Financial Instruments - Effec41

Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain/loss recognized in income	$ 2,577	$ (7)
Derivatives Designated as Cash-Flow Hedging Instruments [Member] | Interest Rate Swap [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain/loss recognized in income		$ (7)
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Unrealized (Loss) Gain on Derivative Instruments, Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain/loss recognized in income	1,313
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Realized Gain (Loss) on Derivative Instruments, Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain/loss recognized in income	(149)
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Unrealized (Loss) Gain on Derivative Instruments, Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain/loss recognized in income	1,491
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Realized Gain (Loss) on Derivative Instruments, Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain/loss recognized in income	$ (78)

Earnings per Share - Computatio

Earnings per Share - Computation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net (Loss) Income, Basic		$ 22,297	$ (1,860)
Net (Loss) Income, Diluted	[1]	$ 22,297	$ (1,860)
Weighted Average Number of Shares Outstanding, Basic		2,283,011	2,295,177
Weighted Average Number of Shares Outstanding, Options		752,529	749,585
Weighted Average Number of Shares Outstanding, Diluted	[1]	3,035,540	3,044,762
Per Share Amount, Basic		$ 9.77	$ (0.81)
Per Share Amount, Diluted	[1]	$ 7.35	$ (0.81)
[1]	The effect of the 767,500 outstanding stock options is antidilutive for the three months ended March 31, 2016 due to a net loss reported for the period.

Earnings per Share - Computat43

Earnings per Share - Computation of Basic and Diluted Earnings (Loss) Per Share (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2016shares
Earnings Per Share [Abstract]
Antidilutive, stock options	767,500