Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 28, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-13283 | |
Entity Registrant Name | RANGER OIL CORPORATION | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 23-1184320 | |
Entity Address, Address Line One | 16285 Park Ten Place | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77084 | |
City Area Code | 713 | |
Local Phone Number | 722-6500 | |
Title of 12(b) Security | Class A Common Stock, $0.01 Par Value | |
Trading Symbol | ROCC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000077159 | |
Current Fiscal Year End Date | --12-31 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 21,163,394 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,548,998 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues | ||
Total revenues and other | $ 256,455 | $ 88,555 |
Operating expenses | ||
Lease operating | 18,102 | 8,825 |
Gathering, processing and transportation | 9,040 | 4,674 |
Production and ad valorem taxes | 13,140 | 5,513 |
General and administrative | 9,779 | 13,177 |
Depreciation, depletion and amortization | 50,893 | 23,884 |
Impairments of oil and gas properties | 0 | 1,811 |
Total operating expenses | 100,954 | 57,884 |
Operating income | 155,501 | 30,671 |
Other income (expense) | ||
Interest expense, net of amounts capitalized | (10,697) | (5,397) |
Gain (loss) on extinguishment of debt | 2,157 | (1,231) |
Derivative losses | (167,887) | (44,368) |
Other, net | 76 | (6) |
Loss before income taxes | (20,850) | (20,331) |
Income tax benefit | 189 | 310 |
Net loss | (20,661) | (20,021) |
Net loss attributable to Noncontrolling interest | 10,676 | 6,449 |
Net loss attributable to common shareholders | $ (9,985) | $ (13,572) |
Net loss per share attributable to common shareholders: | ||
Basic (in dollars per share) | $ (0.47) | $ (0.89) |
Diluted (in dollars per share) | $ (0.47) | $ (0.89) |
Weighted average shares outstanding – basic (in shares) | 21,107 | 15,263 |
Weighted average shares outstanding – diluted (in shares) | 21,107 | 15,263 |
Crude oil | ||
Revenues | ||
Revenues | $ 226,732 | $ 81,913 |
Natural gas liquids | ||
Revenues | ||
Revenues | 16,740 | 3,562 |
Natural gas | ||
Revenues | ||
Revenues | 12,127 | 2,833 |
Other operating income, net | ||
Revenues | ||
Revenues | $ 856 | $ 247 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS – UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (20,661) | $ (20,021) |
Other comprehensive loss: | ||
Change in pension and postretirement obligations, net of tax | 0 | 2 |
Comprehensive loss | (20,661) | (20,019) |
Net loss attributable to Noncontrolling interest | 10,676 | 6,449 |
Other comprehensive income attributable to Noncontrolling interest | 0 | (1) |
Comprehensive loss attributable to common shareholders | $ (9,985) | $ (13,571) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS – UNAUDITED - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 6,358 | $ 23,681 |
Accounts receivable, net of allowance for credit losses | 154,179 | 118,594 |
Derivative assets | 9,631 | 11,478 |
Prepaid and other current assets | 15,989 | 20,998 |
Assets held for sale | 11,400 | 11,400 |
Total current assets | 197,557 | 186,151 |
Property and equipment, net (full cost method) | 1,417,715 | 1,383,348 |
Derivative assets | 2,912 | 2,092 |
Other assets | 4,636 | 5,017 |
Total assets | 1,622,820 | 1,576,608 |
Current liabilities | ||
Accounts payable and accrued liabilities | 246,189 | 214,381 |
Derivative liabilities | 149,008 | 50,372 |
Current portion of long-term debt | 1,925 | 4,129 |
Total current liabilities | 397,122 | 268,882 |
Deferred income taxes | 2,073 | 2,793 |
Derivative liabilities | 42,620 | 23,815 |
Other non-current liabilities | 9,900 | 10,358 |
Long-term debt, net | 521,780 | 601,252 |
Commitments and contingencies (Note 11) | ||
Equity | ||
Preferred stock of $0.01 par value – 5,000,000 shares authorized; none issued as of March 31, 2022 and December 31, 2021 | 0 | 0 |
Paid-in capital | 273,807 | 273,329 |
Retained earnings | 39,598 | 49,583 |
Accumulated other comprehensive loss | (111) | (111) |
Ranger Oil shareholders’ equity | 314,025 | 323,532 |
Noncontrolling interest | 335,300 | 345,976 |
Total equity | 649,325 | 669,508 |
Total liabilities and equity | 1,622,820 | 1,576,608 |
Common Class A | ||
Equity | ||
Common stock | 729 | 729 |
Common Class B | ||
Equity | ||
Common stock | $ 2 | $ 2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS – UNAUDITED (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Series A Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 110,000,000 | 110,000,000 |
Common stock, shares, issued (in shares) | 21,146,230 | 21,090,259 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares, issued (in shares) | 22,548,998 | 22,548,998 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (20,661) | $ (20,021) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
(Gain) loss on extinguishment of debt | (2,157) | 1,231 |
Depreciation, depletion and amortization | 50,893 | 23,884 |
Impairments of oil and gas properties | 0 | 1,811 |
Derivative contracts: | ||
Net losses | 167,887 | 44,368 |
Cash settlements and premiums paid, net | 29,408 | 7,169 |
Deferred income tax benefit | (721) | (310) |
Non-cash interest expense | 800 | 611 |
Share-based compensation | 924 | 2,246 |
Other, net | (182) | 2 |
Changes in operating assets and liabilities, net | (33,540) | (13,966) |
Net cash provided by operating activities | 133,835 | 32,687 |
Cash flows from investing activities | ||
Capital expenditures | (71,173) | (34,758) |
Proceeds from sales of assets, net | 656 | 4 |
Net cash used in investing activities | (70,517) | (34,754) |
Cash flows from financing activities | ||
Proceeds from credit facility borrowings | 50,000 | 0 |
Repayments of credit facility borrowings | (130,000) | (85,500) |
Repayments of second lien term loan | 0 | (53,140) |
Repayments of acquired debt | (83) | 0 |
Proceeds from redeemable common units | 0 | 151,160 |
Proceeds from redeemable preferred stock | 0 | 2 |
Transaction costs paid on behalf of Noncontrolling interest | 0 | (5,543) |
Issuance costs paid for Noncontrolling interest securities | 0 | (3,758) |
Withholding taxes for share-based compensation | (445) | (476) |
Debt issuance costs paid | (113) | (1,830) |
Net cash provided by (used in) financing activities | (80,641) | 915 |
Net decrease in cash and cash equivalents | (17,323) | (1,152) |
Cash and cash equivalents – beginning of period | 23,681 | 13,020 |
Cash and cash equivalents – end of period | 6,358 | 11,868 |
Cash paid for: | ||
Interest, net of amounts capitalized | 20,214 | 4,888 |
Non-cash investing and financing activities: | ||
Changes in property and equipment related to capital contributions | 0 | (38,415) |
Changes in accrued liabilities related to capital expenditures | $ 9,361 | $ 20,246 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - UNAUDITED - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings/(Accumulated Deficit) | Accumulated Other Comprehensive Loss | Noncontrolling interest | |
Balance at beginning of period at Dec. 31, 2020 | $ 212,838 | $ 0 | $ 152 | $ 203,463 | $ 9,354 | $ (131) | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (20,021) | (13,572) | (6,449) | |||||
Issuance of preferred stock | 2 | 2 | ||||||
Issuance of Noncontrolling interest | 179,552 | (50,068) | 229,620 | |||||
All other changes | [1] | 1,772 | 1 | 1,769 | 1 | 1 | ||
Balance at end of period at Mar. 31, 2021 | 374,143 | 2 | 153 | 155,164 | (4,218) | (130) | 223,172 | |
Balance at beginning of period at Dec. 31, 2021 | 669,508 | 0 | 731 | 273,329 | 49,583 | (111) | 345,976 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (20,661) | (9,985) | (10,676) | |||||
All other changes | [2] | 478 | 478 | |||||
Balance at end of period at Mar. 31, 2022 | $ 649,325 | $ 0 | $ 731 | $ 273,807 | $ 39,598 | $ (111) | $ 335,300 | |
[1] | Includes equity-classified share-based compensation of $2.2 million during the three months ended March 31, 2021. During the three months ended March 31, 2021, 102,586 and 6,800 shares of common stock were issued in connection with the vesting of certain RSUs and PRSUs, net of shares withheld for income taxes, respectively. | |||||||
[2] | Includes equity-classified share-based compensation of $0.9 million during the three months ended March 31, 2022. During the three months ended March 31, 2022, 69,206 of common stock were issued in connection with the vesting of certain time-vested restricted stock units (“RSUs”), net of shares withheld for income taxes. No shares of common stock were issued in connection with the vesting of performance-based restricted stock units (“PRSUs”) during the three months ended March 31, 2022. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - UNAUDITED (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Share-based compensation | $ 924 | $ 2,246 |
Restricted stock units, issued (in shares) | 69,206 | 102,586 |
Performance shares, issued (in shares) | 0 | 6,800 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Note 1 – Organization and Description of Business Ranger Oil Corporation (together with its consolidated subsidiaries, unless the context otherwise requires, “Ranger Oil,” the “Company,” “we,” “us” or “our”) is an independent oil and gas company focused on the onshore development and production of oil, natural gas liquids (“NGLs”) and natural gas. Our current operations consist of drilling unconventional horizontal development wells and operating our producing wells in the Eagle Ford Shale (the “Eagle Ford”) in South Texas. We operate in and report our financial results and disclosures as one segment, which is the development and production of crude oil, NGLs and natural gas. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Presentation Our unaudited condensed consolidated financial statements include the accounts of Ranger Oil and all of our subsidiaries as of the relevant dates. Intercompany balances and transactions have been eliminated. A substantial noncontrolling interest in our subsidiaries is provided for in our condensed consolidated statements of operations and comprehensive loss and our condensed consolidated balance sheets for the periods presented. Our condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities Exchange Commission (the “SEC”). Preparation of these statements involves the use of estimates and judgments where appropriate. In the opinion of management, all adjustments considered necessary for a fair presentation of our condensed consolidated financial statements have been included. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications did not have a material impact on prior period financial statements. Our condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. Significant Accounting Policies The Company’s significant accounting policies are described in “Note 3 – Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Annual Report”) and are supplemented by the notes included in this Quarterly Report on Form 10-Q. The financial statements and related notes included in this report should be read in conjunction with the Company’s 2021 Annual Report. Recent Accounting Pronouncements We consider the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not listed below were assessed and determined to be not applicable. Recently Issued Accounting Pronouncements Not Yet Adopted In October 2021, the Financial Accounting Standards Board issued ASU 2021-08, Business Combinations (Topic 805): (“ASU 2021-08”): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 amends Topic 805 to require the acquirer in a business combination to record contract assets and contract liabilities in accordance with Revenue from Contracts with Customers (Topic 606) at acquisition as if it had originated the contract, rather than at fair value. This update is effective for public companies beginning after December 15, 2022, with early adoption permitted. Adoption should be applied prospectively to business combinations occurring on or after the effective date of the amendments unless early adoption occurs during an interim period in which other application rules apply. We do not expect the adoption of this update to have a material impact to our financial statements. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | Note 3 – Acquisition Acquisition of Lonestar Resources On October 5, 2021 (the “Closing Date”), the Company acquired Lonestar Resources US Inc., a Delaware corporation (“Lonestar”), as a result of which Lonestar and its subsidiaries became wholly-owned subsidiaries of the Company (the “Lonestar Acquisition”). The Lonestar Acquisition was effected pursuant to the Agreement and Plan of Merger (the “Merger Agreement”), dated July 10, 2021, by and between the Company and Lonestar. In accordance with the terms of the Merger Agreement, Lonestar shareholders received 0.51 shares of the Company’s common stock for each share of Lonestar common stock held immediately prior to the effective time of the Lonestar Acquisition. Based on the closing price of the Company’s common stock on October 5, 2021 of $30.19, and in connection with the Lonestar Acquisition, the total value of the Company’s common stock issued to holders of Lonestar common stock, warrants and restricted stock units as applicable, was approximately $173.6 million. The Lonestar Acquisition constituted a business combination and was accounted for using the acquisition method of accounting, with Ranger Oil being treated as the accounting acquirer. Under the acquisition method of accounting, the assets and liabilities of Lonestar and its subsidiaries were recorded at their respective preliminary fair values as of the date of completion of the Lonestar Acquisition. Although the purchase price allocation is substantially complete as of March 31, 2022, there may be further adjustments to oil and gas properties as we continue to gather information related to the evaluation of certain properties. We will finalize these amounts within one year subsequent to the closing date of the Lonestar Acquisition. During the three months ended March 31, 2022, there were no changes to the allocation presented in the 2021 Form 10-K. We expensed $1.7 million in acquisition-related costs for the three months ended March 31, 2022 related to employee severance and change-in-control compensation costs and other integration related costs. Pro Forma Operating Results (Unaudited) The following unaudited pro forma condensed financial data for the three months ended March 31, 2021 was derived from the historical financial statements of the Company giving effect to the Lonestar Acquisition, as if it had occurred on January 1, 2020. Three Months Ended March 31, 2021 Total revenues $ 128,371 Net income (loss) attributable to common shareholders $ (23,850) |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Revenue Recognition | Note 4 – Revenue Recognition Revenue from Contracts with Customers Crude oil . We sell our crude oil production to our customers at either the wellhead or a contractually agreed-upon delivery point, including certain regional central delivery point terminals or pipeline inter-connections. We recognize revenue when control transfers to the customer considering factors associated with custody, title, risk of loss and other contractual provisions as appropriate. Pricing is based on a market index with adjustments for product quality, location differentials and, if applicable, deductions for intermediate transportation. Costs incurred by us for gathering and transporting the products to an agreed-upon delivery point are recognized as a component of gathering, processing and transportation expense (“GPT”) in our condensed consolidated statements of operations. NGLs . We have natural gas processing contracts in place with certain midstream processing vendors. We deliver “wet” natural gas to our midstream processing vendors at the inlet of their processing facilities through gathering lines, certain of which we own and others which are owned by gathering service providers. Subsequent to processing, NGLs are delivered or transported to a third-party customer. Depending upon the nature of the contractual arrangements with the midstream processing vendors regarding the marketing of the NGL products, we recognize revenue for NGL products on either a gross or net basis. For those contracts where we have determined that we are the principal, and the ultimate third party is our customer, we recognize revenue on a gross basis, with associated processing costs presented as GPT expenses. For those contracts where we have determined that we are the agent and the midstream processing vendor is our customer, we recognize NGL product revenues on a net basis with processing costs presented as a reduction of revenue. Natural gas . Subsequent to the processing of “wet” natural gas and the separation of NGL products, the “dry” or residue gas is purchased by the processor or delivered to us at the tailgate of the midstream processing vendors’ facilities and sold to a third-party customer. We recognize revenue when control transfers to the customer considering factors associated with custody, title, risk of loss and other contractual provisions as appropriate. Pricing is based on a market index with adjustments for product quality and location differentials, as applicable. Costs incurred by us for gathering and transportation from the wellhead through the processing facilities are recognized as a component of GPT in our condensed consolidated statements of operations. Performance obligations We record revenue in the month that our oil and gas production is delivered to our customers. However, the collection of revenues from oil and gas production may take up to 60 days following the month of production. Therefore, we make accruals for revenues and accounts receivable based on estimates of our share of production sold. We record any differences, which historically have not been significant, between the actual amounts ultimately received and the original estimates in the period they become finalized. We apply a practical expedient which provides for an exemption from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. Under our commodity product sales contracts, we bill our customers and recognize revenue when our performance obligations have been satisfied. At that time, we have determined that payment is unconditional. Accordingly, our commodity sales contracts do not create contract assets or liabilities. Accounts Receivable from Contracts with Customers Our accounts receivable consists mainly of trade receivables from commodity sales and joint interest billings due from partners on properties we operate. Our allowance for credit losses is entirely attributable to receivables from joint interest partners. We generally have the right to withhold future revenue distributions to recover past due receivables from joint interest owners. Generally, our oil, natural gas, and NGL receivables are collected within 30 to 90 days. The following table summarizes our accounts receivable by type as of the dates presented: March 31, 2022 December 31, 2021 Customers $ 132,760 $ 96,195 Joint interest partners 21,518 21,755 Derivative settlements from counterparties 55 1,037 Other 275 18 Total 154,608 119,005 Less: Allowance for credit losses (429) (411) Accounts receivable, net of allowance for credit losses $ 154,179 $ 118,594 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 5 – Derivative Instruments We utilize derivative instruments, typically swaps, put options and call options which are placed with financial institutions that we believe are acceptable credit risks, to mitigate our financial exposure to commodity price volatility associated with anticipated sales of our future production and volatility in interest rates attributable to our variable rate debt instruments. Our derivative instruments are not formally designated as hedges for accounting purposes. While the use of derivative instruments limits the risk of adverse commodity price and interest rate movements, such use may also limit the beneficial impact of future product revenues and interest expense from favorable commodity price and interest rate movements. From time to time, we may enter into incremental derivative contracts in order to increase the notional volume of production we are hedging, restructure existing derivative contracts or enter into other derivative contracts resulting in modification to the terms of existing contracts. In accordance with our internal policies, we do not utilize derivative instruments for speculative purposes. For our commodity derivatives, we typically combine swaps, purchased put options, purchased call options, sold put options and sold call options in order to achieve various hedging objectives. Certain of these objectives result in combinations that operate as collars which include purchased put options and sold call options, three-way collars, which include purchased put options, sold put options and sold call options, and enhanced swaps, which include either sold put options or sold call options with the associated premiums rolled into an enhanced fixed price swap, among others. Commodity Derivatives 1 The following table sets forth our commodity derivative positions, presented on a net basis by period of maturity, as of March 31, 2022: 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 NYMEX WTI Crude Swaps Average Volume Per Day (bbl) 3,000 3,000 3,000 2,500 2,400 2,807 2,657 462 462 Weighted Average Swap Price ($/bbl) $ 74.12 $ 73.01 $ 69.20 $ 54.40 $ 54.26 $ 54.92 $ 54.93 $ 58.75 $58.75 NYMEX WTI Crude Collars Average Volume Per Day (bbl) 17,720 14,266 9,375 6,250 6,181 1,630 1,630 Weighted Average Purchased Put Price ($/bbl) $ 59.12 $ 57.14 $ 52.17 $ 50.67 $ 50.67 $ 60.00 $ 60.00 Weighted Average Sold Call Price ($/bbl) $ 77.01 $ 81.13 $ 67.57 $ 65.65 $ 65.65 $ 76.12 $ 76.12 NYMEX WTI Crude CMA Roll Basis Swaps Average Volume Per Day (bbl) 20,879 14,674 14,674 Weighted Average Swap Price ($/bbl) $ 1.120 $ 1.172 $ 1.172 NYMEX HH Swaps Average Volume Per Day (MMBtu) 12,500 12,500 12,500 10,000 7,500 Weighted Average Swap Price ($/MMBtu) $ 3.727 $ 3.745 $ 3.793 $ 3.620 $ 3.690 NYMEX HH Collars Average Volume Per Day (MMBtu) 13,187 13,043 13,043 11,538 11,413 11,413 11,538 11,538 Weighted Average Purchased Put Price ($/MMBtu) $ 2.500 $ 2.500 $ 2.500 $ 2.500 $ 2.500 $ 2.500 $ 2.500 $ 2.328 Weighted Average Sold Call Price($/MMBtu) $ 3.220 $ 3.220 $ 3.220 $ 2.682 $ 2.682 $ 2.682 $ 3.650 $ 3.000 OPIS Mt Belv Ethane Swaps Average Volume per Day (gal) 28,022 27,717 27,717 98,901 34,239 34,239 34,615 Weighted Average Fixed Price ($/gal) $ 0.2500 $ 0.2500 $ 0.2500 $ 0.2288 $ 0.2275 $ 0.2275 $ 0.2275 _______________________ 1 NYMEX WTI refers to New York Mercantile Exchange West Texas Intermediate that serves as the benchmark for crude oil. NYMEX HH refers to NYMEX Henry Hub that serves as the benchmark for natural gas. OPIS Mt Belv refers to Oil Price Information Service Mt. Belvieu that serves as the benchmark for ethane which represents a commodity proxy for NGLs. Interest Rate Derivatives As of March 31, 2022, we had a series of interest rate swap contracts (the “Interest Rate Swaps”) establishing fixed interest rates on a portion of our variable interest rate indebtedness. The notional amount of the Interest Rate Swaps totals $300 million, with us paying a weighted average fixed rate of 1.36% on the notional amount, and the counterparties paying a variable rate equal to LIBOR through May 2022. Financial Statement Impact of Derivatives The impact of our derivative activities on income is included within Derivatives on our condensed consolidated statements of operations. Derivative contracts that have expired at the end of a period, but for which cash had not been received or paid as of the balance sheet date, have been recognized as components of Accounts receivable (see Note 4) and Accounts payable and accrued liabilities (see Note 9) on the condensed consolidated balance sheets. The effects of derivative gains and (losses) and cash settlements are reported as adjustments to reconcile net loss to net cash provided by operating activities. These items are recorded within the Derivative contracts section of our condensed consolidated statements of cash flows under Net losses and Cash settlements and premiums paid, net. The following table summarizes the effects of our derivative activities for the periods presented: Three Months Ended March 31, 2022 2021 Interest Rate Swap gains recognized in the condensed consolidated statements of operations $ 83 $ 32 Commodity losses recognized in the condensed consolidated statements of operations (167,970) (44,400) $ (167,887) $ (44,368) Interest rate cash settlements recognized in the condensed consolidated statements of cash flows $ (938) $ (922) Commodity cash settlements and premiums paid recognized in the condensed consolidated statements of cash flows (28,470) (6,247) $ (29,408) $ (7,169) The following table summarizes the fair values of our derivative instruments, which we elect to present on a gross basis, as well as the locations of these instruments on our condensed consolidated balance sheets as of the dates presented: Fair Values March 31, 2022 December 31, 2021 Derivative Derivative Derivative Derivative Type Balance Sheet Location Assets Liabilities Assets Liabilities Interest rate contracts Derivative assets/liabilities – current $ — $ 458 $ — $ 1,480 Commodity contracts Derivative assets/liabilities – current 9,631 148,550 11,478 48,892 Interest rate contracts Derivative assets/liabilities – non-current — — — — Commodity contracts Derivative assets/liabilities – non-current 2,912 42,620 2,092 23,815 $ 12,543 $ 191,628 $ 13,570 $ 74,187 As of March 31, 2022, we reported net commodity derivative liabilities of $178.6 million and net Interest Rate Swap liabilities of $0.5 million. The contracts associated with these positions are with eight counterparties for commodity derivatives and four counterparties for Interest Rate Swaps, all of which are investment grade financial institutions and are participants in our revolving credit facility (the “Credit Facility”). This concentration may impact our overall credit risk in that these counterparties may be similarly affected by changes in economic or other conditions. Non-performance risk is incorporated by utilizing discount rates adjusted for the credit risk of our counterparties if the derivative is in an asset position, and our own credit risk if the derivative is in a liability position. The agreements underlying our derivative instruments include provisions for the netting of settlements with the counterparties for contracts of similar type. We have neither paid to, nor received from, our counterparties any cash collateral in connection with our derivative positions. Furthermore, our derivative contracts are not subject to margin calls or similar accelerations. No significant uncertainties exist related to the collectability of amounts that may be owed to us by these counterparties. See Note 10 for information regarding the fair value of our derivative instruments. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 6 – Property and Equipment The following table summarizes our property and equipment as of the dates presented: March 31, 2022 December 31, 2021 Oil and gas properties: Proved $ 2,412,399 $ 2,327,686 Unproved 58,686 57,900 Total oil and gas properties 2,471,085 2,385,586 Other property and equipment 1 31,060 31,055 Total properties and equipment 2,502,145 2,416,641 Accumulated depreciation, depletion, amortization and impairments (1,084,430) (1,033,293) Total property and equipment, net $ 1,417,715 $ 1,383,348 _______________________ 1 Excludes the corporate office building and related assets acquired in connection with the Lonestar Acquisition that were classified as Assets held for sale on the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021. Unproved property costs of $58.7 million and $57.9 million have been excluded from amortization as of March 31, 2022 and December 31, 2021, respectively. We transferred $0.7 million and $7.6 million of undeveloped leasehold costs, including capitalized interest, associated with proved undeveloped reserves, acreage unlikely to be drilled or expiring acreage, from unproved properties to the full cost pool during the three months ended March 31, 2022 and 2021, respectively. We capitalized internal costs of $1.4 million and $0.7 million and interest of $1.1 million and $0.8 million during the three months ended March 31, 2022 and 2021, respectively, in accordance with our accounting policies. Average depreciation, depletion and amortization per barrel of oil equivalent of proved oil and gas properties was $14.98 and $12.92 for the three months ended March 31, 2022 and 2021, respectively. At the end of each quarterly reporting period, the unamortized cost of our oil and gas properties, net of deferred income taxes, is limited to the sum of the estimated after-tax discounted future net revenues from proved properties adjusted for costs excluded from amortization (the “Ceiling Test”). Beginning in early 2020, certain events such as the COVID-19 pandemic and the decisions by the Organization of the Petroleum Exporting Countries (“OPEC”) and Russia (together with OPEC, collectively “OPEC+”) negatively impacted the oil and gas industry with significant declines in crude oil prices and oversupply of crude oil. Over the past year, however, increased mobility, deployment of vaccines and other factors have resulted in increased oil demand and commodity prices. A high level of uncertainty remains regarding the volatility of energy supply and demand as a result of OPEC’s continued strategy to increase production as well as the Russia-Ukraine conflict and related sanctions which began in the first quarter of 2022. WTI crude oil prices have surged, closing at over $120 per bbl during first quarter 2022 due to concerns that it might result in significant oil supply shortages. Because the Ceiling Test utilizes commodity prices based on a trailing 12 month average, the decline in commodity prices in the first quarter of 2021 as a result of COVID-19 and macroeconomic factors resulted in impairments of our oil and gas properties of $1.8 million during the three months ended March 31, 2021. We did not record any impairments of our oil and gas properties during the three months ended March 31, 2022. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7 – Long-Term Debt The following table summarizes our debt obligations as of the dates presented: March 31, 2022 December 31, 2021 Credit Facility $ 128,000 $ 208,000 9.25% Senior Notes due 2026 400,000 400,000 Mortgage debt 1 8,391 8,438 Other 2 322 2,516 Total 536,713 618,954 Less: Unamortized discount 3 (3,560) (3,720) Less: Unamortized deferred issuance costs 3, 4 (9,448) (9,853) Total, net $ 523,705 $ 605,381 Less: Current portion (1,925) (4,129) Long-term debt $ 521,780 $ 601,252 _______________________ 1 The mortgage debt relates to the corporate office building and related assets acquired in connection with the Lonestar Acquisition for which assets are held as collateral for such debt. As of March 31, 2022 and December 31, 2021, these assets met the held for sale criteria and were classified as Assets held for sale on the condensed consolidated balance sheets. 2 Other debt of $2.2 million was extinguished during the three months ended March 31, 2022 and recorded as a gain on extinguishment of debt. 3 The discount and issuance costs of the 9.25% Senior Notes due 2026 are being amortized over its respective term using the effective-interest method. 4 Excludes issuance costs associated with the Credit Facility, which represents costs attributable to the access to credit over its contractual term, that have been presented as a component of Other assets (see Note 9) and are being amortized over the term of the Credit Facility using the straight-line method. Credit Facility As of March 31, 2022, the Credit Facility had a $1.0 billion revolving commitment and a $725 million borrowing base with aggregate elected commitments of $400 million, and a $25 million sublimit for the issuance of letters of credit. Availability under the Credit Facility may not exceed the lesser of the aggregate elected commitments or the borrowing base less outstanding advances and letters of credit. The borrowing base under the Credit Facility is redetermined semi-annually, generally in the Spring and Fall of each year. Our next borrowing base redetermination is scheduled in May 2022. Additionally, we and the Credit Facility lenders may, upon request, initiate a redetermination at any time during the six-month period between scheduled redeterminations. The Credit Facility is available to us for general corporate purposes, including working capital. The outstanding borrowings under the Credit Facility bear interest at a rate equal to, at our option, either (a) a customary reference rate plus an applicable margin ranging from 1.50% to 2.50%, determined based on the utilization level under the Credit Facility or (b) a Eurodollar rate, including LIBOR through 2023, plus an applicable margin ranging from 2.50% to 3.50%, determined based on the utilization level under the Credit Facility. Interest on reference rate borrowings is payable quarterly in arrears and is computed on the basis of a year of 365/366 days, and interest on Eurodollar borrowings is payable every one three The Credit Facility requires us to maintain (1) a minimum current ratio (as defined in the Credit Facility, which considers the unused portion of the total commitment as a current asset), measured as of the last day of each fiscal quarter of 1.00 to 1.00 and (2) a maximum leverage ratio (consolidated indebtedness to adjusted earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses, both as defined in the Credit Facility), measured as of the last day of each fiscal quarter of 3.50 to 1.00. The Credit Facility also contains other customary affirmative and negative covenants as well as events of default and remedies. If we do not comply with the financial and other covenants in the Credit Facility, the lenders may, subject to customary cure rights, require immediate payment of all amounts outstanding under the Credit Facility. As of March 31, 2022, we had $128.0 million in outstanding borrowings and $0.7 million in outstanding letters of credit under the Credit Facility. Factoring in the outstanding letters of credit, we had $271.3 million of availability under the Credit Facility as of March 31, 2022. During the three months ended March 31, 2021, we incurred and capitalized approximately $0.4 million of issue costs associated with amendments to the Credit Facility. 9.25% Senior Notes due 2026 On August 10, 2021, our indirect, wholly-owned subsidiary Penn Virginia Escrow LLC (the “Escrow Issuer”) completed an offering of $400 million aggregate principal amount of senior unsecured notes due 2026 (the “9.25% Senior Notes due 2026”) that bear interest at 9.25% and were sold at 99.018% of par. Obligations under the 9.25% Senior Notes due 2026 were assumed by Penn Virginia Holdings, LLC (“Holdings”), as borrower, and are guaranteed by the subsidiaries of Holdings that guarantee the Credit Facility. Interest on the 9.25% Senior Notes due 2026 is payable semi-annually in arrears on February 15 and August 15 of each year. We may redeem the 9.25% Senior Notes due 2026 at any time in whole or in part from time to time in part at specified redemption prices. The indenture governing the 9.25% Senior Notes due 2026 also contains other customary affirmative and negative covenants as well as events of default and remedies. As of March 31, 2022, we were in compliance with all debt covenants. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 – Income Taxes The income tax provision resulted in a benefit of $0.2 million for the three months ended March 31, 2022. The federal portion was fully offset by an adjustment to the valuation allowance against our net deferred tax assets resulting in an effective tax rate of 0.9%, which is fully attributable to the State of Texas. Our net deferred income tax liability balance of $2.1 million as of March 31, 2022 is also fully attributable to the State of Texas and primarily related to property. The income tax provision resulted in a benefit of $0.3 million for the three months ended March 31, 2021. The federal portion was fully offset by an adjustment to the valuation allowance against our net deferred tax assets resulting in an effective tax rate of 1.5%, which is fully attributable to the State of Texas. We had no liability for unrecognized tax benefits as of March 31, 2022 and December 31, 2021. There were no interest and penalty charges recognized during the three months ended March 31, 2022 and 2021. Tax years from 2017 forward remain open to examination by the major taxing jurisdictions to which the Company is subject; however, net operating losses originating in prior years are subject to examination when utilized. |
Supplemental Balance Sheet Deta
Supplemental Balance Sheet Detail | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Detail | Note 9 – Supplemental Balance Sheet Detail The following table summarizes components of selected balance sheet accounts as of the dates presented: March 31, 2022 December 31, 2021 Prepaid and other current assets: Inventories 1 $ 13,025 $ 10,305 Prepaid expenses 2 2,964 10,693 $ 15,989 $ 20,998 Other assets: Deferred issuance costs of the Credit Facility, net of amortization $ 3,138 $ 3,308 Right-of-use assets – operating leases 1,498 1,671 Other — 38 $ 4,636 $ 5,017 Accounts payable and accrued liabilities: Trade accounts payable $ 32,463 $ 32,452 Drilling and other lease operating costs 47,103 35,045 Revenue and royalties payable 110,493 95,521 Production, ad valorem and other taxes 12,224 7,905 Derivative settlements to counterparties 25,146 6,117 Compensation and benefits 7,957 13,942 Interest 5,003 15,321 Environmental remediation liability 3 2,277 2,287 Current operating lease obligations 891 914 Other 2,632 4,877 $ 246,189 $ 214,381 Other non-current liabilities: Asset retirement obligations $ 8,186 $ 8,413 Non-current operating lease obligations 755 975 Postretirement benefit plan obligations 959 970 $ 9,900 $ 10,358 _______________________ 1 Includes tubular inventory and well materials of $12.2 million and $9.5 million and crude oil volumes in storage of $0.8 million and $0.8 million as of March 31, 2022 and December 31, 2021, respectively. 2 The balances as of March 31, 2022 and December 31, 2021 include $0.6 million and $9.6 million, respectively, for the prepayment of drilling and completion materials and services. 3 The balance as of March 31, 2022 and December 31, 2021 represents estimated costs associated with remediation activities for certain wells and tanks acquired as part of the Lonestar Acquisition. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10 – Fair Value Measurements We apply the authoritative accounting provisions included in GAAP for measuring the fair value of both our financial and nonfinancial assets and liabilities. Fair value is an exit price representing the expected amount we would receive upon the sale of an asset or that we would expect to pay to transfer a liability in an orderly transaction with market participants at the measurement date. Our financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to their short-term maturities. As of March 31, 2022 and December 31, 2021, the carrying values of the borrowings outstanding under our credit facilities approximate fair value as the borrowings bear interest at variables rates tied to current market rates and the applicable margins represent market rates. The fair value of our fixed rate 9.25% Senior Notes due 2026 is estimated based on the published market prices for issuances of similar risk and tenor and is categorized as Level 2 within the fair value hierarchy. As of March 31, 2022, the carrying amount and estimated fair value of total debt (before amortization of issuance costs) was $536.7 million and $559.4 million, respectively. As of December 31, 2021, the carrying amount and estimated fair value of total debt (before amortization of issuance costs) was $619.0 million and $634.6 million. Recurring Fair Value Measurements The fair values of our derivative instruments are measured at fair value on a recurring basis on our condensed consolidated balance sheets. The following tables summarize the valuation of those assets and (liabilities) as of the dates presented: As of March 31, 2022 Level 1 Level 2 Level 3 Total Financial assets: Commodity derivative assets – current $ — $ 9,631 $ — $ 9,631 Commodity derivative assets – non-current — 2,912 — 2,912 Total financial assets $ — $ 12,543 $ — $ 12,543 Financial liabilities: Interest rate swap liabilities – current $ — $ (458) $ — $ (458) Commodity derivative liabilities – current — (148,550) — (148,550) Commodity derivative liabilities – non-current — (42,620) — (42,620) Total financial liabilities $ — $ (191,628) $ — $ (191,628) As of December 31, 2021 Level 1 Level 2 Level 3 Total Financial assets: Commodity derivative assets – current $ — $ 11,478 $ — $ 11,478 Commodity derivative assets – non-current — 2,092 — 2,092 Total financial assets $ — $ 13,570 $ — $ 13,570 Financial liabilities: Interest rate swap liabilities – current $ — $ (1,480) $ — $ (1,480) Commodity derivative liabilities – current — (48,892) — (48,892) Commodity derivative liabilities – non-current — (23,815) — (23,815) Total financial liabilities $ — $ (74,187) $ — $ (74,187) We used the following methods and assumptions to estimate fair values for the financial assets and liabilities described below: • Commodity derivatives : We determine the fair values of our commodity derivative instruments using industry-standard models that consider various assumptions including current market and contractual prices for the underlying instruments, implied volatilities, time value and non-performance risk. For the current market prices, we use third-party quoted forward prices, as applicable, for NYMEX WTI, MEH crude oil, NYMEX HH natural gas and OPIS Mt Belv Ethane natural gas liquids closing prices as of the end of the reporting periods. Each of these is a Level 2 input. • Interest rate swaps : We determine the fair values of our interest rate swaps using an income approach valuation technique which discounts future cash flows back to a single present value. We estimate the fair value of the swaps based on published interest rate yield curves as of the date of the estimate. Each of these is a Level 2 input. Non-performance risk is incorporated by utilizing discount rates adjusted for the credit risk of our counterparties if the derivative is in an asset position, and our own credit risk if the derivative is in a liability position. See Note 5 for additional details on our derivative instruments. Non-Recurring Fair Value Measurements The most significant non-recurring fair value measurements utilized in the preparation of our condensed consolidated financial statements are those attributable to the initial determination of AROs associated with the ongoing development of new oil and gas properties and certain share-based compensation awards. The determination of the fair value of AROs is based upon regional market and facility specific information. The amount of an ARO and the costs capitalized represent the estimated future cost to satisfy the abandonment obligation using current prices that are escalated by an assumed inflation factor after discounting the future cost back to the date that the abandonment obligation was incurred using a rate commensurate with the risk, which approximates our cost of funds. Because these significant fair value inputs are typically not observable, we have categorized the initial estimates as Level 3 inputs. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 – Commitments and Contingencies Drilling and Completion Commitments As of March 31, 2022, we have a one year contract for one drilling rig and a contractual commitment on a pad-to-pad basis for one other drilling rig. Gathering and Intermediate Transportation Commitments We have long-term agreements that provide us with field gathering and intermediate pipeline transportation services for a majority of our crude oil and condensate production in Lavaca and Gonzales Counties, Texas. We also have volume capacity support for certain downstream interstate pipeline transportation. The following table provides details on these contractual arrangements as of March 31, 2022: Description of contractual arrangement Expiration Minimum Volume Expiration of Minimum Volume Commitment (MVC) Field gathering agreement February 2041 8,000 February 2031 Intermediate pipeline transportation services February 2026 8,000 February 2026 Volume capacity support April 2026 8,000 April 2026 Each of these arrangements also contain an obligation to deliver the first 20,000 gross barrels of oil per day produced from Gonzales, Lavaca and Fayette Counties, Texas. For certain of our crude oil volumes gathered under the field gathering agreement, our rate includes an adjustment based on NYMEX WTI prices. As crude oil prices increase, up to a cap of $90 per bbl, the gathering rate escalates pursuant to the field gathering agreement. Under each of the arrangements, credits for deliveries of volumes in excess of the volume commitment may be applied to any deficiency arising in the succeeding 12-month period. During the three months ended March 31, 2022 and 2021, we recorded expense of $10.2 million and $8.4 million, respectively, for these contractual obligations in connection with these arrangements. Excluding the application of existing credits that we have earned during the preceding 12-month period ended March 31, 2022 for deliveries of volumes in excess of the volume commitment, and the potential impact of the effects of price escalation from commodity price changes, if any, the minimum fee requirements attributable to the MVC under the gathering, transportation and marketing agreements are as follows: $10.5 million for the remainder of 2022, approximately $13.9 million per year for 2023 through 2025, $7.8 million for 2026, $3.8 million per year for 2027 through 2030 and $0.6 million for 2031. Crude Oil Storage As of March 31, 2022, we had access to up to approximately 180,000 barrels of dedicated tank capacity for no additional charge at the service provider’s central delivery point facility (“CDP”), in Lavaca County, Texas through February 2041. In addition, we had access for up to a maximum of 340,000 barrels of tank capacity and evergreen month-to-month at several locations in the South Texas region comprised of (i) access to an additional 70,000 barrels of tank capacity at the CDP on a month-to-month basis, which can be terminated by either party with 45 days’ notice to the counterparty, (ii) crude oil storage capacity for up to 90,000 barrels with a downstream interstate pipeline at a facility in DeWitt County, Texas, on a month-to-month basis, which expired in April 2022, and (iii) an agreement with a marketing affiliate of the aforementioned downstream interstate pipeline to utilize up to 62,000 barrels of capacity within their system on a firm basis and an additional 120,000 barrels, if available, on a flexible basis that both expired in April 2022. Costs associated with these agreements are in the form of monthly fixed rate short-term leases and are charged as incurred on a monthly basis to GPT in our condensed consolidated statements of operations. Other Agreements We have a long-term dedication of certain specific leases to a crude purchase and throughput terminal agreement into 2032. Under the agreement, we have rights to transfer dedicated oil for delivery to a gulf coast terminal in Point Comfort, Texas or oil may be transferred at alternate locations to third parties and pay the terminal fee. We have agreements that provide us with field gathering, compression and short-haul transportation services for our natural gas production and gas lift for our hydrocarbon production under various terms through 2039. We also have agreements that provide us with services to process our wet gas production into NGL products and dry, or residue, gas. Several agreements covering the majority of our wet gas production extend beyond three years, including one agreement that extends into 2029. Legal, Environmental Compliance and Other We are involved, from time to time, in various legal proceedings arising in the ordinary course of business. While the ultimate results of these proceedings cannot be predicted with certainty, our management believes that these claims will not have a material effect on our financial position, results of operations or cash flows. As of March 31, 2022 and December 31, 2021, we had an estimated reserve of approximately $0.1 million for certain claims made against us regarding previously divested operations included in Accounts payable and accrued liabilities on our condensed consolidated balance sheets. As of March 31, 2022 and December 31, 2021, we had AROs of approximately $8.2 million and $8.4 million attributable to the plugging of abandoned wells, respectively. Additionally, we had $2.3 million of environmental remediation liabilities assumed in the Lonestar Acquisition as of March 31, 2022 and December 31, 2021. Additionally, we have entered into certain contractual arrangements for other products and services and have commitments under information technology licensing and service agreements, among others. |
Share-Based Compensation and Ot
Share-Based Compensation and Other Benefit Plans | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation and Other Benefit Plans | Note 12 – Share-Based Compensation and Other Benefit Plans Share-Based Compensation We reserved 4,424,600 shares of Class A Common Stock for issuance under the Ranger Oil Management Incentive Plan (the “Plan”) for share-based compensation awards. A total of 762,259 RSUs and 484,197 PRSUs have been granted to employees and directors through March 31, 2022. We recognized expense attributable to the RSUs and PRSUs of $0.9 million for the three months ended March 31, 2022 and $2.2 million, including approximately $1.9 million as a result of a change-in-control event associated with the Juniper Transactions for the three months ended March 31, 2021. We recognize share-based compensation expense as a component of G&A expenses in our condensed consolidated statements of operations. Time-Vested Restricted Stock Units The table below summarizes activity for the three months ended March 31, 2022 with respect to awarded RSUs: Restricted Stock Weighted-Average Balance at beginning of year 230,517 $ 9.20 Granted — — Vested (69,206) (7.94) Forfeited — — Balance at end of year 161,311 $ 10.52 Compensation expense for RSUs is recognized on a straight-line basis over the applicable vesting period, which is generally over a three-year period. As of March 31, 2022, we had $1.2 million of unrecognized compensation cost attributable to RSUs. We expect that cost to be recognized over a weighted-average period of 1.71 years. Performance-Based Restricted Stock Units During the three months ended March 31, 2022, we did not have any activity with respect to the PRSUs. As of March 31, 2022, a total of 345,069 PRSUs were unvested and outstanding. Compensation expense for PRSUs with a market condition is being charged to expense on a straight-line basis for the 2021 grants and graded-vesting for the 2020 and 2019 grants, over a range of less than one The 2021 PRSU grants are based 50% on the Company’s return on average capital employed (“ROCE”) relative to a defined peer group and 50% based on the Company’s absolute total shareholder return and total shareholder return (“TSR”) relative to a defined peer group over the three-year performance period. The 2021 PRSUs cliff vest from 0% to 200% of the original grant at the end of a three-year performance period based on satisfaction of the respective underlying conditions. Vesting of PRSUs granted in 2020 and 2019 range from 0% to 200% of the original grant based on TSR relative to a defined peer group over the three year performance period. As TSR is deemed a “market condition”, the grant-date fair value for the 2019, 2020 and a portion of the 2021 grants is derived by using a Monte Carlo model. The ranges for the assumptions used in the Monte Carlo model for the PRSUs granted during 2021, 2020 and 2019 are presented as follows: 2021 1 2020 1 2019 Expected volatility 131.74% to 134.74% 101.32% to 117.71% 49.9 % Dividend yield 0.0 % 0.0 % 0.0 % Risk-free interest rate 0.22% to 0.29% 0.18% to 0.51% 1.66 % Performance period 2021-2023 2020-2022 2020-2022 _______________________ 1 One executive officer’s inducement award originally granted in August 2020 was amended in April 2021 to conform vesting conditions to other PRSU awards granted in 2021. The Monte Carlo assumptions for both years are included above. As of March 31, 2022, we had $3.9 million of unrecognized compensation cost attributable to PRSUs. We expect that cost to be recognized over a weighted-average period of 1.94 years. Other Benefit Plans We maintain the Penn Virginia Corporation and Affiliated Companies Employees 401(k) Plan (the “401(k) Plan”), a defined contribution plan, which covers substantially all of our employees. We recognized $0.2 million of expense attributable to the 401(k) Plan for both the three months ended March 31, 2022 and 2021. The charges for the 401(k) Plan are recorded as a component of G&A expenses in our condensed consolidated statements of operations. We maintain unqualified legacy defined benefit pension and defined benefit postretirement plans that cover a limited number of former employees, all of whom retired prior to January 1, 2000. The combined expense recognized with respect to these plans was less than $0.1 million for each of the three and three months ended March 31, 2022 and 2021. The charges for these plans are recorded as a component of Other income (expense) in our condensed consolidated statements of operations. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 13 – Earnings Per Share Basic net earnings (loss) per share is calculated by dividing the net income (loss) available to common shareholders, excluding net income or loss attributable to Noncontrolling interest, by the weighted average common shares outstanding for the period. In computing diluted earnings (loss) per share, basic net earnings (loss) per share is adjusted based on the assumption that dilutive RSUs and PRSUs have vested and outstanding Common Units (and shares of Class B Common Stock, par value $0.01 per share (“Class B Common Stock”) as applicable to the three months ended March 31, 2022 and Series A Preferred Stock, par value $0.01 per share (“Series A Preferred Stock”) as applicable to the three months ended March 31, 2021) held by the Noncontrolling interest in the Partnership are exchanged for common shares. Accordingly, our reported net income (loss) attributable to common shareholders is adjusted to reflect the reallocation of the net income (loss) attributable to the Noncontrolling interest assuming exchange of the Common Units (and shares of Class B Common Stock as applicable to the three months ended March 31, 2022 and Series A Preferred Stock as applicable to the three months ended March 31, 2021) held by the Noncontrolling interest. The following table provides a reconciliation of the components used in the calculation of basic and diluted earnings (loss) per share for the periods presented: Three Months Ended March 31, 2022 2021 Net loss $ (20,661) $ (20,021) Net loss attributable to Noncontrolling interest 10,676 6,449 Net loss attributable to common shareholders (basic) (9,985) (13,572) Reallocation of Noncontrolling interest net loss (10,676) (6,449) Net loss attributable to common shareholders (diluted) $ (20,661) $ (20,021) Weighted-average shares – basic 21,107 15,263 Effect of dilutive securities: Common Units and Series A Preferred Stock or Class B Common Stock, as applicable, that are exchangeable for common shares 1 — — RSUs and PRSUs — — Weighted-average shares – diluted 2 21,107 15,263 _______________________ 1 In connection with the Juniper Transactions in January 2021, we issued shares of Series A Preferred Stock. In October 2021, the Company effected a recapitalization and the Series A Preferred Stock were exchanged with Class B Common Stock and the designation of the Series A Preferred Stock was cancelled. 2 For the three months ended March 31, 2022, approximately 22.5 million potentially dilutive Common Units (and the associated 22.5 million Class B Common Stock) and 0.6 million of RSUs and PRSUs had the effect of being anti-dilutive and were excluded from the calculation of earnings per share. For the three months ended March 31, 2021, approximately 22.7 million potentially dilutive securities represented by approximately 22.5 million Common Units (and the associated approximately 0.2 million shares of Series A Preferred Stock) as well as approximately 0.2 million of RSUs and PRSUs had the effect of being anti-dilutive and were excluded from the calculation of diluted earnings per share. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 – Subsequent Events Share Repurchase Program On April 13, 2022, our Board of Directors approved a share repurchase program, under which the Company is authorized to repurchase up to $100 million of its outstanding Class A common stock. The share repurchase authorization was effective immediately and is valid through March 31, 2023. The shares may be repurchased from time to time in open market transactions, through privately negotiated transactions, or by other means in accordance with federal securities laws. The Company intends to fund repurchases from available working capital and cash provided by operating activities. The timing, as well as the number and value of shares repurchased under the program, will be determined by the Company at its discretion and will depend on a variety of factors, including among other things, our earnings, liquidity, capital requirements, financial condition, management’s assessment of the intrinsic value of the Class A Common Stock, the market price of the Company's Class A common stock, general market and economic conditions, available liquidity, compliance with the Company’s debt and other agreements (including maintaining a leverage ratio of no more than 1.0 to 1.0), applicable legal requirements and other factors deemed relevant. The exact number of shares to be repurchased by the Company is not guaranteed, and the program may be suspended, modified, or discontinued at any time without prior notice. Acquisitions On May 3, 2022, we entered into separate agreements to acquire “bolt-on” oil producing properties in the Eagle Ford shale contiguous to our existing assets for a total purchase price of approximately $64 million in cash, subject to customary adjustments. The transactions are expected to close early in the third quarter, subject to customary closing conditions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Our unaudited condensed consolidated financial statements include the accounts of Ranger Oil and all of our subsidiaries as of the relevant dates. Intercompany balances and transactions have been eliminated. A substantial noncontrolling interest in our subsidiaries is provided for in our condensed consolidated statements of operations and comprehensive loss and our condensed consolidated balance sheets for the periods presented. Our condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities Exchange Commission (the “SEC”). Preparation of these statements involves the use of estimates and judgments where appropriate. In the opinion of management, all adjustments considered necessary for a fair presentation of our condensed consolidated financial statements have been included. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications did not have a material impact on prior period financial statements. Our condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements We consider the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not listed below were assessed and determined to be not applicable. Recently Issued Accounting Pronouncements Not Yet Adopted In October 2021, the Financial Accounting Standards Board issued ASU 2021-08, Business Combinations (Topic 805): (“ASU 2021-08”): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 amends Topic 805 to require the acquirer in a business combination to record contract assets and contract liabilities in accordance with Revenue from Contracts with Customers (Topic 606) at acquisition as if it had originated the contract, rather than at fair value. This update is effective for public companies beginning after December 15, 2022, with early adoption permitted. Adoption should be applied prospectively to business combinations occurring on or after the effective date of the amendments unless early adoption occurs during an interim period in which other application rules apply. We do not expect the adoption of this update to have a material impact to our financial statements. |
Non-Recurring Fair Value Measurements | Non-Recurring Fair Value Measurements The most significant non-recurring fair value measurements utilized in the preparation of our condensed consolidated financial statements are those attributable to the initial determination of AROs associated with the ongoing development of new oil and gas properties and certain share-based compensation awards. The determination of the fair value of AROs is based upon regional market and facility specific information. The amount of an ARO and the costs capitalized represent the estimated future cost to satisfy the abandonment obligation using current prices that are escalated by an assumed inflation factor after discounting the future cost back to the date that the abandonment obligation was incurred using a rate commensurate with the risk, which approximates our cost of funds. Because these significant fair value inputs are typically not observable, we have categorized the initial estimates as Level 3 inputs. |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Pro Forma Information | The following unaudited pro forma condensed financial data for the three months ended March 31, 2021 was derived from the historical financial statements of the Company giving effect to the Lonestar Acquisition, as if it had occurred on January 1, 2020. Three Months Ended March 31, 2021 Total revenues $ 128,371 Net income (loss) attributable to common shareholders $ (23,850) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | The following table summarizes our accounts receivable by type as of the dates presented: March 31, 2022 December 31, 2021 Customers $ 132,760 $ 96,195 Joint interest partners 21,518 21,755 Derivative settlements from counterparties 55 1,037 Other 275 18 Total 154,608 119,005 Less: Allowance for credit losses (429) (411) Accounts receivable, net of allowance for credit losses $ 154,179 $ 118,594 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity Derivative Positions | The following table sets forth our commodity derivative positions, presented on a net basis by period of maturity, as of March 31, 2022: 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 NYMEX WTI Crude Swaps Average Volume Per Day (bbl) 3,000 3,000 3,000 2,500 2,400 2,807 2,657 462 462 Weighted Average Swap Price ($/bbl) $ 74.12 $ 73.01 $ 69.20 $ 54.40 $ 54.26 $ 54.92 $ 54.93 $ 58.75 $58.75 NYMEX WTI Crude Collars Average Volume Per Day (bbl) 17,720 14,266 9,375 6,250 6,181 1,630 1,630 Weighted Average Purchased Put Price ($/bbl) $ 59.12 $ 57.14 $ 52.17 $ 50.67 $ 50.67 $ 60.00 $ 60.00 Weighted Average Sold Call Price ($/bbl) $ 77.01 $ 81.13 $ 67.57 $ 65.65 $ 65.65 $ 76.12 $ 76.12 NYMEX WTI Crude CMA Roll Basis Swaps Average Volume Per Day (bbl) 20,879 14,674 14,674 Weighted Average Swap Price ($/bbl) $ 1.120 $ 1.172 $ 1.172 NYMEX HH Swaps Average Volume Per Day (MMBtu) 12,500 12,500 12,500 10,000 7,500 Weighted Average Swap Price ($/MMBtu) $ 3.727 $ 3.745 $ 3.793 $ 3.620 $ 3.690 NYMEX HH Collars Average Volume Per Day (MMBtu) 13,187 13,043 13,043 11,538 11,413 11,413 11,538 11,538 Weighted Average Purchased Put Price ($/MMBtu) $ 2.500 $ 2.500 $ 2.500 $ 2.500 $ 2.500 $ 2.500 $ 2.500 $ 2.328 Weighted Average Sold Call Price($/MMBtu) $ 3.220 $ 3.220 $ 3.220 $ 2.682 $ 2.682 $ 2.682 $ 3.650 $ 3.000 OPIS Mt Belv Ethane Swaps Average Volume per Day (gal) 28,022 27,717 27,717 98,901 34,239 34,239 34,615 Weighted Average Fixed Price ($/gal) $ 0.2500 $ 0.2500 $ 0.2500 $ 0.2288 $ 0.2275 $ 0.2275 $ 0.2275 _______________________ 1 NYMEX WTI refers to New York Mercantile Exchange West Texas Intermediate that serves as the benchmark for crude oil. NYMEX HH refers to NYMEX Henry Hub that serves as the benchmark for natural gas. OPIS Mt Belv refers to Oil Price Information Service Mt. Belvieu that serves as the benchmark for ethane which represents a commodity proxy for NGLs. |
Impact of Derivative Activities on Condensed Consolidated Statements of Income | The following table summarizes the effects of our derivative activities for the periods presented: Three Months Ended March 31, 2022 2021 Interest Rate Swap gains recognized in the condensed consolidated statements of operations $ 83 $ 32 Commodity losses recognized in the condensed consolidated statements of operations (167,970) (44,400) $ (167,887) $ (44,368) Interest rate cash settlements recognized in the condensed consolidated statements of cash flows $ (938) $ (922) Commodity cash settlements and premiums paid recognized in the condensed consolidated statements of cash flows (28,470) (6,247) $ (29,408) $ (7,169) |
Fair Value of Derivative Instruments on Condensed Consolidated Balance Sheets | The following table summarizes the fair values of our derivative instruments, which we elect to present on a gross basis, as well as the locations of these instruments on our condensed consolidated balance sheets as of the dates presented: Fair Values March 31, 2022 December 31, 2021 Derivative Derivative Derivative Derivative Type Balance Sheet Location Assets Liabilities Assets Liabilities Interest rate contracts Derivative assets/liabilities – current $ — $ 458 $ — $ 1,480 Commodity contracts Derivative assets/liabilities – current 9,631 148,550 11,478 48,892 Interest rate contracts Derivative assets/liabilities – non-current — — — — Commodity contracts Derivative assets/liabilities – non-current 2,912 42,620 2,092 23,815 $ 12,543 $ 191,628 $ 13,570 $ 74,187 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | The following table summarizes our property and equipment as of the dates presented: March 31, 2022 December 31, 2021 Oil and gas properties: Proved $ 2,412,399 $ 2,327,686 Unproved 58,686 57,900 Total oil and gas properties 2,471,085 2,385,586 Other property and equipment 1 31,060 31,055 Total properties and equipment 2,502,145 2,416,641 Accumulated depreciation, depletion, amortization and impairments (1,084,430) (1,033,293) Total property and equipment, net $ 1,417,715 $ 1,383,348 _______________________ 1 Excludes the corporate office building and related assets acquired in connection with the Lonestar Acquisition that were classified as Assets held for sale on the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table summarizes our debt obligations as of the dates presented: March 31, 2022 December 31, 2021 Credit Facility $ 128,000 $ 208,000 9.25% Senior Notes due 2026 400,000 400,000 Mortgage debt 1 8,391 8,438 Other 2 322 2,516 Total 536,713 618,954 Less: Unamortized discount 3 (3,560) (3,720) Less: Unamortized deferred issuance costs 3, 4 (9,448) (9,853) Total, net $ 523,705 $ 605,381 Less: Current portion (1,925) (4,129) Long-term debt $ 521,780 $ 601,252 _______________________ 1 The mortgage debt relates to the corporate office building and related assets acquired in connection with the Lonestar Acquisition for which assets are held as collateral for such debt. As of March 31, 2022 and December 31, 2021, these assets met the held for sale criteria and were classified as Assets held for sale on the condensed consolidated balance sheets. 2 Other debt of $2.2 million was extinguished during the three months ended March 31, 2022 and recorded as a gain on extinguishment of debt. 3 The discount and issuance costs of the 9.25% Senior Notes due 2026 are being amortized over its respective term using the effective-interest method. 4 Excludes issuance costs associated with the Credit Facility, which represents costs attributable to the access to credit over its contractual term, that have been presented as a component of Other assets (see Note 9) and are being amortized over the term of the Credit Facility using the straight-line method. |
Supplemental Balance Sheet De_2
Supplemental Balance Sheet Detail (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Selected Balance Sheet Accounts | The following table summarizes components of selected balance sheet accounts as of the dates presented: March 31, 2022 December 31, 2021 Prepaid and other current assets: Inventories 1 $ 13,025 $ 10,305 Prepaid expenses 2 2,964 10,693 $ 15,989 $ 20,998 Other assets: Deferred issuance costs of the Credit Facility, net of amortization $ 3,138 $ 3,308 Right-of-use assets – operating leases 1,498 1,671 Other — 38 $ 4,636 $ 5,017 Accounts payable and accrued liabilities: Trade accounts payable $ 32,463 $ 32,452 Drilling and other lease operating costs 47,103 35,045 Revenue and royalties payable 110,493 95,521 Production, ad valorem and other taxes 12,224 7,905 Derivative settlements to counterparties 25,146 6,117 Compensation and benefits 7,957 13,942 Interest 5,003 15,321 Environmental remediation liability 3 2,277 2,287 Current operating lease obligations 891 914 Other 2,632 4,877 $ 246,189 $ 214,381 Other non-current liabilities: Asset retirement obligations $ 8,186 $ 8,413 Non-current operating lease obligations 755 975 Postretirement benefit plan obligations 959 970 $ 9,900 $ 10,358 _______________________ 1 Includes tubular inventory and well materials of $12.2 million and $9.5 million and crude oil volumes in storage of $0.8 million and $0.8 million as of March 31, 2022 and December 31, 2021, respectively. 2 The balances as of March 31, 2022 and December 31, 2021 include $0.6 million and $9.6 million, respectively, for the prepayment of drilling and completion materials and services. 3 The balance as of March 31, 2022 and December 31, 2021 represents estimated costs associated with remediation activities for certain wells and tanks acquired as part of the Lonestar Acquisition. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables summarize the valuation of those assets and (liabilities) as of the dates presented: As of March 31, 2022 Level 1 Level 2 Level 3 Total Financial assets: Commodity derivative assets – current $ — $ 9,631 $ — $ 9,631 Commodity derivative assets – non-current — 2,912 — 2,912 Total financial assets $ — $ 12,543 $ — $ 12,543 Financial liabilities: Interest rate swap liabilities – current $ — $ (458) $ — $ (458) Commodity derivative liabilities – current — (148,550) — (148,550) Commodity derivative liabilities – non-current — (42,620) — (42,620) Total financial liabilities $ — $ (191,628) $ — $ (191,628) As of December 31, 2021 Level 1 Level 2 Level 3 Total Financial assets: Commodity derivative assets – current $ — $ 11,478 $ — $ 11,478 Commodity derivative assets – non-current — 2,092 — 2,092 Total financial assets $ — $ 13,570 $ — $ 13,570 Financial liabilities: Interest rate swap liabilities – current $ — $ (1,480) $ — $ (1,480) Commodity derivative liabilities – current — (48,892) — (48,892) Commodity derivative liabilities – non-current — (23,815) — (23,815) Total financial liabilities $ — $ (74,187) $ — $ (74,187) |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Commitment, Excluding Long-term Commitment | The following table provides details on these contractual arrangements as of March 31, 2022: Description of contractual arrangement Expiration Minimum Volume Expiration of Minimum Volume Commitment (MVC) Field gathering agreement February 2041 8,000 February 2031 Intermediate pipeline transportation services February 2026 8,000 February 2026 Volume capacity support April 2026 8,000 April 2026 |
Share-Based Compensation and _2
Share-Based Compensation and Other Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Unit Activity | The table below summarizes activity for the three months ended March 31, 2022 with respect to awarded RSUs: Restricted Stock Weighted-Average Balance at beginning of year 230,517 $ 9.20 Granted — — Vested (69,206) (7.94) Forfeited — — Balance at end of year 161,311 $ 10.52 |
Schedule of Valuation Assumptions | The ranges for the assumptions used in the Monte Carlo model for the PRSUs granted during 2021, 2020 and 2019 are presented as follows: 2021 1 2020 1 2019 Expected volatility 131.74% to 134.74% 101.32% to 117.71% 49.9 % Dividend yield 0.0 % 0.0 % 0.0 % Risk-free interest rate 0.22% to 0.29% 0.18% to 0.51% 1.66 % Performance period 2021-2023 2020-2022 2020-2022 _______________________ 1 One executive officer’s inducement award originally granted in August 2020 was amended in April 2021 to conform vesting conditions to other PRSU awards granted in 2021. The Monte Carlo assumptions for both years are included above. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Components of Calculation of Basic and Diluted Earnings Per Share | The following table provides a reconciliation of the components used in the calculation of basic and diluted earnings (loss) per share for the periods presented: Three Months Ended March 31, 2022 2021 Net loss $ (20,661) $ (20,021) Net loss attributable to Noncontrolling interest 10,676 6,449 Net loss attributable to common shareholders (basic) (9,985) (13,572) Reallocation of Noncontrolling interest net loss (10,676) (6,449) Net loss attributable to common shareholders (diluted) $ (20,661) $ (20,021) Weighted-average shares – basic 21,107 15,263 Effect of dilutive securities: Common Units and Series A Preferred Stock or Class B Common Stock, as applicable, that are exchangeable for common shares 1 — — RSUs and PRSUs — — Weighted-average shares – diluted 2 21,107 15,263 _______________________ 1 In connection with the Juniper Transactions in January 2021, we issued shares of Series A Preferred Stock. In October 2021, the Company effected a recapitalization and the Series A Preferred Stock were exchanged with Class B Common Stock and the designation of the Series A Preferred Stock was cancelled. 2 For the three months ended March 31, 2022, approximately 22.5 million potentially dilutive Common Units (and the associated 22.5 million Class B Common Stock) and 0.6 million of RSUs and PRSUs had the effect of being anti-dilutive and were excluded from the calculation of earnings per share. For the three months ended March 31, 2021, approximately 22.7 million potentially dilutive securities represented by approximately 22.5 million Common Units (and the associated approximately 0.2 million shares of Series A Preferred Stock) as well as approximately 0.2 million of RSUs and PRSUs had the effect of being anti-dilutive and were excluded from the calculation of diluted earnings per share. |
Organization and Description _2
Organization and Description of Business (Details) $ / shares in Units, $ in Millions | Jan. 15, 2021USD ($)$ / sharesshares | Mar. 31, 2022segment$ / shares | Dec. 31, 2021$ / shares |
Juniper Transaction Table [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Number of operating segments | segment | 1 | ||
Common Class A | |||
Juniper Transaction Table [Line Items] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Juniper Transaction | |||
Juniper Transaction Table [Line Items] | |||
Proceeds from contributed capital | $ | $ 150 | ||
Contribution agreement, common (in shares) | shares | 22,548,998 | ||
Juniper Transaction | Common Class A | |||
Juniper Transaction Table [Line Items] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - Lonestar $ / shares in Units, $ in Millions | Oct. 05, 2021USD ($)$ / shares | Mar. 31, 2022USD ($) |
Business Acquisition [Line Items] | ||
Acquisition, share ratio | 0.51 | |
Acquisition, share price (in dollars per share) | $ / shares | $ 30.19 | |
Acquisition, share value | $ 173.6 | |
Acquisition, transaction costs | $ 1.7 |
Acquisition - Schedule of Pro F
Acquisition - Schedule of Pro Forma Information (Details) - Lonestar $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |
Total revenues | $ 128,371 |
Net income (loss) attributable to common shareholders | $ (23,850) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Customers | $ 132,760 | $ 96,195 |
Joint interest partners | 21,518 | 21,755 |
Derivative settlements from counterparties | 55 | 1,037 |
Other | 275 | 18 |
Total | 154,608 | 119,005 |
Less: Allowance for credit losses | (429) | (411) |
Accounts receivable, net of allowance for credit losses | $ 154,179 | $ 118,594 |
Derivative Instruments - Commod
Derivative Instruments - Commodity Derivative Positions (Details) | Mar. 31, 2022bbl$ / bbl |
Crude Oil | Swap | Second Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 3,000 |
Derivative, Swap Type, Average Fixed Price | 74.12 |
Crude Oil | Swap | Third Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 3,000 |
Derivative, Swap Type, Average Fixed Price | 73.01 |
Crude Oil | Swap | Fourth Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 3,000 |
Derivative, Swap Type, Average Fixed Price | 69.20 |
Crude Oil | Swap | First Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 2,500 |
Derivative, Swap Type, Average Fixed Price | 54.40 |
Crude Oil | Swap | Second Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 2,400 |
Derivative, Swap Type, Average Fixed Price | 54.26 |
Crude Oil | Swap | Third Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 2,807 |
Derivative, Swap Type, Average Fixed Price | 54.92 |
Crude Oil | Swap | Fourth Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 2,657 |
Derivative, Swap Type, Average Fixed Price | 54.93 |
Crude Oil | Swap | First Quarter 2024 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 462 |
Derivative, Swap Type, Average Fixed Price | 58.75 |
Crude Oil | Swap | Second Quarter 2024 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 462 |
Derivative, Swap Type, Average Fixed Price | 58.75 |
Crude Oil | 2-Way Collars | Second Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 17,720 |
Derivative, Average Floor Price | 59.12 |
Derivative, Average Cap Price | 77.01 |
Crude Oil | 2-Way Collars | Third Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 14,266 |
Derivative, Average Floor Price | 57.14 |
Derivative, Average Cap Price | 81.13 |
Crude Oil | 2-Way Collars | Fourth Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 9,375 |
Derivative, Average Floor Price | 52.17 |
Derivative, Average Cap Price | 67.57 |
Crude Oil | 2-Way Collars | First Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 6,250 |
Derivative, Average Floor Price | 50.67 |
Derivative, Average Cap Price | 65.65 |
Crude Oil | 2-Way Collars | Second Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 6,181 |
Derivative, Average Floor Price | 50.67 |
Derivative, Average Cap Price | 65.65 |
Crude Oil | 2-Way Collars | Third Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 1,630 |
Derivative, Average Floor Price | 60 |
Derivative, Average Cap Price | 76.12 |
Crude Oil | 2-Way Collars | Fourth Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 1,630 |
Derivative, Average Floor Price | 60 |
Derivative, Average Cap Price | 76.12 |
Crude Oil | CMA Roll Basis Swap | Second Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 20,879 |
Derivative, CMA Roll Basis Swap, Price | 1.120 |
Crude Oil | CMA Roll Basis Swap | Third Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 14,674 |
Derivative, CMA Roll Basis Swap, Price | 1.172 |
Crude Oil | CMA Roll Basis Swap | Fourth Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 14,674 |
Derivative, CMA Roll Basis Swap, Price | 1.172 |
Natural Gas | Swap | Second Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 12,500 |
Derivative, Swap Type, Average Fixed Price | 3.727 |
Natural Gas | Swap | Third Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 12,500 |
Derivative, Swap Type, Average Fixed Price | 3.745 |
Natural Gas | Swap | Fourth Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 12,500 |
Derivative, Swap Type, Average Fixed Price | 3.793 |
Natural Gas | Swap | First Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 10,000 |
Derivative, Swap Type, Average Fixed Price | 3.620 |
Natural Gas | Swap | Second Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 7,500 |
Derivative, Swap Type, Average Fixed Price | 3.690 |
Natural Gas | 2-Way Collars | Second Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 13,187 |
Derivative, Average Floor Price | 2.500 |
Derivative, Average Cap Price | 3.220 |
Natural Gas | 2-Way Collars | Third Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 13,043 |
Derivative, Average Floor Price | 2.500 |
Derivative, Average Cap Price | 3.220 |
Natural Gas | 2-Way Collars | Fourth Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 13,043 |
Derivative, Average Floor Price | 2.500 |
Derivative, Average Cap Price | 3.220 |
Natural Gas | 2-Way Collars | Second Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 11,538 |
Derivative, Average Floor Price | 2.500 |
Derivative, Average Cap Price | 2.682 |
Natural Gas | 2-Way Collars | Third Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 11,413 |
Derivative, Average Floor Price | 2.500 |
Derivative, Average Cap Price | 2.682 |
Natural Gas | 2-Way Collars | Fourth Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 11,413 |
Derivative, Average Floor Price | 2.500 |
Derivative, Average Cap Price | 2.682 |
Natural Gas | 2-Way Collars | First Quarter 2024 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 11,538 |
Derivative, Average Floor Price | 2.500 |
Derivative, Average Cap Price | 3.650 |
Natural Gas | 2-Way Collars | Second Quarter 2024 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 11,538 |
Derivative, Average Floor Price | 2.328 |
Derivative, Average Cap Price | 3 |
Natural Gas Liquids | Swap | Second Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 28,022 |
Derivative, Swap Type, Average Fixed Price | 0.2500 |
Natural Gas Liquids | Swap | Third Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 27,717 |
Derivative, Swap Type, Average Fixed Price | 0.2500 |
Natural Gas Liquids | Swap | Fourth Quarter 2022 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 27,717 |
Derivative, Swap Type, Average Fixed Price | 0.2500 |
Natural Gas Liquids | Swap | Second Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 98,901 |
Derivative, Swap Type, Average Fixed Price | 0.2288 |
Natural Gas Liquids | Swap | Third Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 34,239 |
Derivative, Swap Type, Average Fixed Price | 0.2275 |
Natural Gas Liquids | Swap | Fourth Quarter 2023 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 34,239 |
Derivative, Swap Type, Average Fixed Price | 0.2275 |
Natural Gas Liquids | Swap | First Quarter 2024 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Nonmonetary Notional Amount | bbl | 34,615 |
Derivative, Swap Type, Average Fixed Price | 0.2275 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Thousands | Mar. 31, 2022USD ($)customer | Dec. 31, 2021USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative liabilities | $ 191,628 | $ 74,187 |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, notional amount | $ 300,000 | |
Derivative, average fixed interest rate | 136.00% | |
Derivative liabilities | $ 500 | |
Number of derivative counterparties | customer | 4 | |
Commodity contracts | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative liabilities | $ 178,600 | |
Number of derivative counterparties | customer | 8 |
Derivative Instruments - Impact
Derivative Instruments - Impact of Derivative Activities on Condensed Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Interest Rate Swap gains recognized in the condensed consolidated statements of operations | $ 83 | $ 32 |
Commodity losses recognized in the condensed consolidated statements of operations | (167,970) | (44,400) |
Derivative losses | (167,887) | (44,368) |
Interest rate cash settlements recognized in the condensed consolidated statements of cash flows | (938) | (922) |
Commodity cash settlements and premiums paid recognized in the condensed consolidated statements of cash flows | (28,470) | (6,247) |
Cash settlements and premiums paid, net | $ (29,408) | $ (7,169) |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 9,631 | $ 11,478 |
Derivative liabilities | 149,008 | 50,372 |
Derivative assets | 2,912 | 2,092 |
Derivative liabilities | 42,620 | 23,815 |
Derivative assets | 12,543 | 13,570 |
Derivative liabilities | 191,628 | 74,187 |
Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 500 | |
Interest Rate Swap | Derivative assets/liabilities – current | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 458 | 1,480 |
Interest Rate Swap | Derivative assets/liabilities – non-current | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 178,600 | |
Commodity contracts | Derivative assets/liabilities – current | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 9,631 | 11,478 |
Derivative liabilities | 148,550 | 48,892 |
Commodity contracts | Derivative assets/liabilities – non-current | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 2,912 | 2,092 |
Derivative liabilities | $ 42,620 | $ 23,815 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Oil and gas properties: | ||
Proved | $ 2,412,399 | $ 2,327,686 |
Unproved | 58,686 | 57,900 |
Total oil and gas properties | 2,471,085 | 2,385,586 |
Other property and equipment | 31,060 | 31,055 |
Total properties and equipment | 2,502,145 | 2,416,641 |
Accumulated depreciation, depletion, amortization and impairments | (1,084,430) | (1,033,293) |
Total property and equipment, net | $ 1,417,715 | $ 1,383,348 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)$ / bbl$ / bbl | Mar. 31, 2021USD ($)$ / bbl | Dec. 31, 2021USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Unproved oil and gas property excluded | $ 58,700 | $ 57,900 | |
Undeveloped leasehold costs transferred | 700 | $ 7,600 | |
Capitalized costs, proved properties | 1,400 | 700 | |
Interest costs capitalized | $ 1,100 | $ 800 | |
Amortization expense per physical unit of production | $ / bbl | 14.98 | 12.92 | |
Impairments of oil and gas properties | $ 0 | $ 1,811 | |
West Texas Intermediate | |||
Property, Plant and Equipment [Line Items] | |||
Oil price per barrel (in dollars per barrel) | $ / bbl | 120 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Aug. 10, 2021 | |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 536,713 | $ 618,954 | ||
Less: Unamortized discount | (3,560) | (3,720) | ||
Less: Unamortized deferred issuance costs | (9,448) | (9,853) | ||
Total, net | 523,705 | 605,381 | ||
Less: Current portion | (1,925) | (4,129) | ||
Long-term debt, net | 521,780 | 601,252 | ||
Gain (loss) on extinguishment of debt | 2,157 | $ (1,231) | ||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 128,000 | 208,000 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 400,000 | 400,000 | ||
Senior Notes | Senior Notes Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 9.25% | |||
Mortgage debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 8,391 | 8,438 | ||
Other | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 322 | $ 2,516 | ||
Gain (loss) on extinguishment of debt | $ 2,200 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Aug. 10, 2021 | Mar. 31, 2021 | |
Debt Disclosure [Line Items] | |||
Current ratio | 1 | ||
Debt to EBITD ratio, maximum | 3.50 | ||
Debt issuance costs, line of credit arrangements, gross | $ 400,000 | ||
Senior notes | $ 400,000,000 | ||
Senior notes, redemption percentage | 99.018% | ||
Revolving Credit Facility | |||
Debt Disclosure [Line Items] | |||
Line of credit facility, interest rate at period end | 3.02% | ||
Commitment fee | 0.50% | ||
Revolving Credit Facility | Minimum | |||
Debt Disclosure [Line Items] | |||
Interest rate | 1.50% | ||
Revolving Credit Facility | Maximum | |||
Debt Disclosure [Line Items] | |||
Interest rate | 2.50% | ||
Revolving Credit Facility | Interest Payable One | |||
Debt Disclosure [Line Items] | |||
Debt instrument, interest payable period | 1 month | ||
Revolving Credit Facility | Interest Payable Two | |||
Debt Disclosure [Line Items] | |||
Debt instrument, interest payable period | 3 months | ||
Revolving Credit Facility | Interest Payable Three | |||
Debt Disclosure [Line Items] | |||
Debt instrument, interest payable period | 6 months | ||
Revolving Credit Facility | LIBOR | Minimum | |||
Debt Disclosure [Line Items] | |||
Applicable margin | 2.50% | ||
Revolving Credit Facility | LIBOR | Maximum | |||
Debt Disclosure [Line Items] | |||
Applicable margin | 3.50% | ||
Line of Credit | Revolving Credit Facility | |||
Debt Disclosure [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||
Line of credit facility, current borrowing capacity | 400,000,000 | ||
Outstanding borrowings | 128,000,000 | ||
Letters of credit outstanding | 700,000 | ||
Remaining borrowing capacity | 271,300,000 | ||
Letter of Credit | |||
Debt Disclosure [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 25,000,000 | ||
Revolving Credit Facility | Line of Credit | |||
Debt Disclosure [Line Items] | |||
Line of credit facility, borrowing base | $ 725,000,000 | ||
Senior Notes Due 2026 | Senior Notes | |||
Debt Disclosure [Line Items] | |||
Interest rate | 9.25% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit | $ 200,000 | $ 300,000 | |
Change in deferred tax assets valuation allowance, percent | 0.90% | 1.50% | |
Deferred tax liabilities, tax deferred income | $ 2,100,000 | ||
Unrecognized tax benefits | 0 | $ 0 | |
Income tax examination, penalties and interest expense | $ 0 | $ 0 |
Supplemental Balance Sheet De_3
Supplemental Balance Sheet Detail (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Prepaid and other current assets: | ||
Inventories | $ 13,025 | $ 10,305 |
Prepaid expenses | 2,964 | 10,693 |
Prepaid and other current assets | 15,989 | 20,998 |
Other assets: | ||
Deferred issuance costs of the Credit Facility, net of amortization | 3,138 | 3,308 |
Right-of-use assets – operating leases | 1,498 | 1,671 |
Other | 0 | 38 |
Other assets | 4,636 | 5,017 |
Accounts payable and accrued liabilities: | ||
Trade accounts payable | 32,463 | 32,452 |
Drilling and other lease operating costs | 47,103 | 35,045 |
Revenue and royalties payable | 110,493 | 95,521 |
Production, ad valorem and other taxes | 12,224 | 7,905 |
Derivative settlements to counterparties | 25,146 | 6,117 |
Compensation and benefits | 7,957 | 13,942 |
Interest | 5,003 | 15,321 |
Environmental remediation liability | 2,277 | 2,287 |
Current operating lease obligations | 891 | 914 |
Other | 2,632 | 4,877 |
Accounts payable and accrued liabilities | 246,189 | 214,381 |
Other non-current liabilities: | ||
Asset retirement obligations | 8,186 | 8,413 |
Non-current operating lease obligations | 755 | 975 |
Postretirement benefit plan obligations | 959 | 970 |
Other non-current liabilities | 9,900 | 10,358 |
Tubular inventory and well materials | 12,200 | 9,500 |
Capitalized costs - crude oil in storage | 800 | 800 |
Drilling and completion prepayment | $ 600 | $ 9,600 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Aug. 10, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, gross | $ 536,713 | $ 618,954 | |
Long-term debt, fair value | 559,400 | 634,600 | |
Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, gross | $ 400,000 | $ 400,000 | |
Senior Notes Due 2026 | Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate | 9.25% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Commodity derivative assets – current | $ 9,631 | $ 11,478 |
Commodity derivative assets – non-current | 2,912 | 2,092 |
Derivative assets | 12,543 | 13,570 |
Financial liabilities: | ||
Derivative liabilities – current | (149,008) | (50,372) |
Derivative liabilities, noncurrent | (42,620) | (23,815) |
Derivative liabilities | (191,628) | (74,187) |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Derivative assets | 12,543 | 13,570 |
Financial liabilities: | ||
Derivative liabilities | (191,628) | (74,187) |
Commodity contracts | ||
Financial liabilities: | ||
Derivative liabilities | (178,600) | |
Commodity contracts | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Commodity derivative assets – current | 9,631 | 11,478 |
Commodity derivative assets – non-current | 2,912 | 2,092 |
Financial liabilities: | ||
Derivative liabilities – current | (148,550) | (48,892) |
Derivative liabilities, noncurrent | (42,620) | (23,815) |
Interest Rate Swap | ||
Financial liabilities: | ||
Derivative liabilities | (500) | |
Interest Rate Swap | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Derivative liabilities – current | (458) | (1,480) |
Level 1 | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Financial liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 | Commodity contracts | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Commodity derivative assets – current | 0 | 0 |
Commodity derivative assets – non-current | 0 | 0 |
Financial liabilities: | ||
Derivative liabilities – current | 0 | 0 |
Derivative liabilities, noncurrent | 0 | 0 |
Level 1 | Interest Rate Swap | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Derivative liabilities – current | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Derivative assets | 12,543 | 13,570 |
Financial liabilities: | ||
Derivative liabilities | (191,628) | (74,187) |
Level 2 | Commodity contracts | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Commodity derivative assets – current | 9,631 | 11,478 |
Commodity derivative assets – non-current | 2,912 | 2,092 |
Financial liabilities: | ||
Derivative liabilities – current | (148,550) | (48,892) |
Derivative liabilities, noncurrent | (42,620) | (23,815) |
Level 2 | Interest Rate Swap | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Derivative liabilities – current | (458) | (1,480) |
Level 3 | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Financial liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 3 | Commodity contracts | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Commodity derivative assets – current | 0 | 0 |
Commodity derivative assets – non-current | 0 | 0 |
Financial liabilities: | ||
Derivative liabilities – current | 0 | 0 |
Derivative liabilities, noncurrent | 0 | 0 |
Level 3 | Interest Rate Swap | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Derivative liabilities – current | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($)rigbbl | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | |||
Drilling rig, contract period | 1 year | ||
Unrecorded unconditional purchase obligation, change of amount as result of variable components | $ 90 | ||
Unrecorded unconditional purchase obligation, purchases | 10,200,000 | $ 8,400,000 | |
Estimated litigation liability, current | 100,000 | $ 100,000 | |
Asset retirement obligation | 8,200,000 | 8,400,000 | |
Environmental remediation liability | $ 2,277,000 | $ 2,287,000 | |
Drilling Rig With Contractual Term | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Drilling rigs | rig | 1 | ||
Drilling Rig With Pad-to-Pad Basis Commitment | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Drilling rigs | rig | 1 | ||
Crude Oil Gathering And Transportation Services | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Purchase obligation, remainder of 2022 | $ 10,500,000 | ||
Purchase obligation, year 2023 | 13,900,000 | ||
Purchase obligation, year 2024 | 13,900,000 | ||
Purchase obligation, year 2025 | 13,900,000 | ||
Purchase obligation, year 2026 | 7,800,000 | ||
Purchase obligation, year 2027 | 3,800,000 | ||
Purchase obligation, year 2028 | 3,800,000 | ||
Purchase obligation, year 2029 | 3,800,000 | ||
Purchase obligation, year 2030 | 3,800,000 | ||
Purchase obligation, year 2031 | $ 600,000 | ||
Intermediate pipeline transportation services | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of barrels | bbl | 8,000 | ||
Field gathering agreement | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of barrels | bbl | 8,000 | ||
Gonzales, Lavaca and Fayette Counties, Texas | Intermediate pipeline transportation services | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of barrels | bbl | 20,000 | ||
Gonzales, Lavaca and Fayette Counties, Texas | Field gathering agreement | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of barrels | bbl | 20,000 | ||
Nuevo G&T | Crude Oil Storage Capacity | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of barrels | bbl | 180,000 | ||
Nuevo G&T | Tank Capacity | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of barrels | bbl | 70,000 | ||
Nuevo G&T | Crude Oil Storage Capacity with Downstream Interstate Pipeline | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of barrels | bbl | 90,000 | ||
South Texas Region | Crude Oil Storage Capacity | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of barrels | bbl | 340,000 | ||
Nuevo Dos Gathering and Transportation, LLC-Marketing Affiliate | Crude Oil Storage Capacity with Downstream Interstate Pipeline | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of barrels | bbl | 62,000 | ||
Nuevo Dos Gathering and Transportation, LLC-Marketing Affiliate | Additional Crude Oil Storage Capacity With Downstream Interstate Pipeline | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of barrels | bbl | 120,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Commitment, Excluding Long-term Commitment (Details) | 3 Months Ended |
Mar. 31, 2022bbl | |
Field gathering agreement | |
Commitments and Contingencies Disclosure [Line Items] | |
Number of barrels | 8,000 |
Intermediate pipeline transportation services | |
Commitments and Contingencies Disclosure [Line Items] | |
Number of barrels | 8,000 |
Volume capacity support | |
Commitments and Contingencies Disclosure [Line Items] | |
Number of barrels | 8,000 |
Share-Based Compensation and _3
Share-Based Compensation and Other Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation | $ 924 | $ 2,246 |
Defined contribution plan, cost | 200 | 200 |
Other Pension, Postretirement and Supplemental Plans | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Pension and other postretirement benefits cost (reversal of cost), less than | $ 100 | $ 100 |
Restricted Stock Units (RSUs) | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Number of shares available for grant (in shares) | 762,259 | |
Award vesting period | 3 years | |
Cost not yet recognized, amount | $ 1,200 | |
Cost not yet recognized, period for recognition | 1 year 8 months 15 days | |
Performance Shares | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Number of shares authorized (in shares) | 484,197 | |
Award vesting period | 3 years | |
Cost not yet recognized, amount | $ 3,900 | |
Cost not yet recognized, period for recognition | 1 year 11 months 8 days | |
Options, outstanding, number (in shares) | 345,069 | |
Performance Shares | Minimum | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Award vesting period | 1 year | |
Shares expected to vest, percentage | 0.00% | |
Performance Shares | Maximum | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Award vesting period | 3 years | |
Shares expected to vest, percentage | 200.00% | |
Change in Control | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation | $ 1,900 | |
Employees and Directors | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Number of shares available for grant (in shares) | 4,424,600 |
Share-Based Compensation and _4
Share-Based Compensation and Other Benefit Plans - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Restricted Stock Units | |
Balance at beginning of period (in shares) | shares | 230,517 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (69,206) |
Forfeited (in shares) | shares | 0 |
Balance at end of period (in shares) | shares | 161,311 |
Weighted-Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 9.20 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | (7.94) |
Forfeited (in shares) | $ / shares | 0 |
Balance at end of period (in shares) | $ / shares | $ 10.52 |
Share-Based Compensation and _5
Share-Based Compensation and Other Benefit Plans - Schedule of Valuation Assumptions (Details) - Performance Shares | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Expected volatility | 49.90% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate, minimum | 0.22% | 0.18% | |
Risk-free interest rate, maximum | 0.29% | 0.51% | |
Risk-free interest rate | 1.66% | ||
Minimum | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Expected volatility | 131.74% | 101.32% | |
Maximum | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Expected volatility | 134.74% | 117.71% |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Common Class B | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Series A Preferred Stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Earnings Per Share - Components
Earnings Per Share - Components of Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net loss | $ (20,661) | $ (20,021) |
Net loss attributable to Noncontrolling interest | 10,676 | 6,449 |
Net loss attributable to common shareholders (basic) | (9,985) | (13,572) |
Reallocation of Noncontrolling interest net loss | (10,676) | (6,449) |
Net loss attributable to common shareholders (diluted) | $ (20,661) | $ (20,021) |
Weighted-average shares – basic (in shares) | 21,107 | 15,263 |
Effect of dilutive securities: | ||
Common Units and Series A Preferred Stock that are exchangeable for common shares (in shares) | 0 | 0 |
RSUs and PRSUs (in shares) | 0 | 0 |
Weighted-average shares – diluted (in shares) | 21,107 | 15,263 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 22,700 | |
Restricted Stock Units and Performance Stock Units | ||
Effect of dilutive securities: | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 600 | 200 |
Common Units | ||
Effect of dilutive securities: | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 22,500 | 22,500 |
Common Class B | ||
Effect of dilutive securities: | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 22,500 | |
Series A Preferred Stock | ||
Effect of dilutive securities: | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 200 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) | May 03, 2022 | Apr. 13, 2022 |
Subsequent Event [Line Items] | ||
Maximum debt leverage ratio | 100.00% | |
Bolt-On | ||
Subsequent Event [Line Items] | ||
Cash payment to acquire business | $ 64,000,000 | |
Common Class A | ||
Subsequent Event [Line Items] | ||
Stock repurchase program, authorized amount | $ 100,000,000 |