Document_and_Entity_Informatio
Document and Entity Information Document Document | 6 Months Ended | |
Jun. 30, 2014 | Jul. 18, 2014 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'PDC ENERGY, INC. | ' |
Entity Central Index Key | '0000077877 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 35,870,665 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $40,357 | $193,243 |
Restricted cash | 49 | 2,214 |
Accounts receivable, net | 116,928 | 94,085 |
Accounts receivable affiliates | 6,424 | 6,614 |
Fair value of derivatives | 785 | 2,572 |
Deferred income taxes | 44,118 | 22,374 |
Prepaid expenses and other current assets | 4,907 | 4,711 |
Total current assets | 213,568 | 325,813 |
Properties and equipment, net | 1,828,721 | 1,656,230 |
Fair value of derivatives | 1,158 | 5,601 |
Other assets | 42,978 | 37,559 |
Total Assets | 2,086,425 | 2,025,203 |
Current liabilities: | ' | ' |
Accounts payable | 107,897 | 109,555 |
Accounts payable affiliates | 0 | 41 |
Production tax liability | 25,259 | 23,421 |
Fair value of derivatives | 50,838 | 15,515 |
Funds held for distribution | 40,411 | 32,578 |
Current portion of long-term debt | 106,921 | 0 |
Accrued interest payable | 9,182 | 9,251 |
Other accrued expenses | 40,827 | 23,059 |
Total current liabilities | 381,335 | 213,420 |
Long-term debt | 562,000 | 656,990 |
Deferred income taxes | 116,948 | 118,767 |
Asset retirement obligation | 38,911 | 39,872 |
Fair value of derivatives | 23,415 | 3,015 |
Other liabilities | 20,545 | 25,545 |
Total liabilities | 1,143,154 | 1,057,609 |
Commitments and contingent liabilities | ' | ' |
Shareholders' Equity: | ' | ' |
Preferred shares - par value $0.01 per share, 50,000,000 shares authorized,none issued | 0 | 0 |
Common shares - par value $0.01 per share, 150,000,000 authorized, 35,857,560 and 35,675,656 issued as of June 30, 2014 and December 31, 2013, respectively | 359 | 357 |
Additional paid-in capital | 681,019 | 674,211 |
Retained earnings | 262,953 | 293,267 |
Treasury shares - at cost, 18,580 and 5,508 as of March 31, 2014 and December 31, 2013, respectively | -1,060 | -241 |
Total shareholders' equity | 943,271 | 967,594 |
Total Liabilities and Shareholders' Equity | $2,086,425 | $2,025,203 |
Balance_Sheet_Parenthetical_Pa
Balance Sheet Parenthetical (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 150,000,000 | 100,000,000 |
Common stock, shares issued | 35,857,560 | 35,675,656 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury shares, at cost | 18,580 | 5,508 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Crude oil, natural gas and NGL sales | $139,924 | $77,537 | $269,768 | $156,976 |
Sales from natural gas marketing | 22,415 | 18,079 | 49,352 | 31,749 |
Commodity price risk management gain (loss), net | -53,411 | 24,724 | -80,566 | 2,369 |
Well operations, pipeline income and other | 544 | 965 | 1,180 | 2,037 |
Total revenues | 109,472 | 121,305 | 239,734 | 193,131 |
Costs, expenses and other: | ' | ' | ' | ' |
Production costs | 26,754 | 16,176 | 47,958 | 32,034 |
Cost of natural gas marketing | 22,428 | 18,065 | 49,298 | 31,801 |
Exploration expense | 277 | 1,437 | 584 | 3,126 |
Impairment of crude oil and natural gas properties | 938 | 1,502 | 1,917 | 47,961 |
General and administrative expense | 40,665 | 15,783 | 64,277 | 30,898 |
Depreciation, depletion and amortization | 53,743 | 27,800 | 100,382 | 55,749 |
Accretion of asset retirement obligations | 855 | 1,172 | 1,716 | 2,320 |
(Gain) loss on sale of properties and equipment | -363 | -9 | 362 | -47 |
Total cost, expenses and other | 145,297 | 81,926 | 266,494 | 203,842 |
Income (loss) from operations | -35,825 | 39,379 | -26,760 | -10,711 |
Interest expense | -13,060 | -13,089 | -25,890 | -26,446 |
Interest income | 152 | 3 | 403 | 3 |
Income (loss) from continuing operations before income taxes | -48,733 | 26,293 | -52,247 | -37,154 |
Provision for income taxes | 20,546 | -9,791 | 21,933 | 12,701 |
Income (loss) from continuing operations | -28,187 | 16,502 | -30,314 | -24,453 |
Income from discontinued operations, net of tax | 0 | 3,416 | 0 | 4,953 |
Net income (loss) | ($28,187) | $19,918 | ($30,314) | ($19,500) |
Basic | ' | ' | ' | ' |
Income (loss) from continuing operations | ($0.79) | $0.55 | ($0.85) | ($0.80) |
Income from discontinued operations, net of tax | $0 | $0.11 | $0 | $0.16 |
Net income (loss) | ($0.79) | $0.66 | ($0.85) | ($0.64) |
Diluted | ' | ' | ' | ' |
Income (loss) from continuing operations | ($0.79) | $0.53 | ($0.85) | ($0.80) |
Income from discontinued operations, net of tax | $0 | $0.11 | $0 | $0.16 |
Net income (loss) | ($0.79) | $0.64 | ($0.85) | ($0.64) |
Weighted-average common shares outstanding | ' | ' | ' | ' |
Basic | 35,762 | 30,332 | 35,726 | 30,301 |
Diluted | 35,762 | 31,014 | 35,726 | 30,301 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($30,314) | ($19,500) |
Adjustments to net loss to reconcile to net cash provided by operating activities: | ' | ' |
Net change in fair value of unsettled derivatives | 61,953 | 9,913 |
Depreciation, depletion and amortization | 100,382 | 58,007 |
Impairment of crude oil and natural gas properties | 1,917 | 47,964 |
Accretion of asset retirement obligation | 1,716 | 2,481 |
Stock-based compensation | 8,879 | 6,951 |
Loss on sale of properties and equipment | 362 | 1,029 |
Amortization of debt discount and issuance costs | 3,443 | 3,419 |
Deferred income taxes | -23,563 | -11,075 |
Other | -90 | -476 |
Changes in assets and liabilities | 6,905 | -56,687 |
Net cash from operating activities | 131,590 | 42,026 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -293,648 | -139,462 |
Proceeds from acquisition adjustments | 0 | 7,579 |
Proceeds from sale of properties and equipment | 1,449 | 173,297 |
Net cash from investing activities | -292,199 | 41,414 |
Cash flows from financing activities: | ' | ' |
Proceeds from revolving credit facility | 17,000 | 227,750 |
Repayment of revolving credit facility | -7,000 | -267,000 |
Other | -2,277 | -3,435 |
Net cash from financing activities | 7,723 | -42,685 |
Net change in cash and cash equivalents | -152,886 | 40,755 |
Cash and cash equivalents, beginning of period | 193,243 | 2,457 |
Cash and cash equivalents, end of period | 40,357 | 43,212 |
Cash payments (receipts) for: | ' | ' |
Interest, net of capitalized interest | 23,724 | 25,787 |
Income taxes | 1,800 | -57 |
Non-cash investing activities: | ' | ' |
Change in accounts payable related to purchases of properties and equipment | -6,962 | -8,695 |
Change in asset retirement obligation, with a corresponding change to natural gas and crude oil properties, net of disposals | 341 | 211 |
Change in accounts payable related to disposition of properties and equipment | 0 | -4,680 |
Change in accounts receivable affiliates related to disposition of properties and equipment | $0 | $9,201 |
NATURE_OF_OPERATIONS_AND_BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2014 | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION [Abstract] | ' |
Nature of Operations | ' |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | |
PDC Energy, Inc. is a domestic independent exploration and production company that produces, develops, acquires and explores for crude oil, natural gas and NGLs with primary operations in the Wattenberg Field in Colorado, the Utica Shale in southeastern Ohio and the Marcellus Shale in northern West Virginia. Our operations in the Wattenberg Field are focused on the liquid-rich horizontal Niobrara and Codell plays and our Ohio operations are focused on the liquid-rich portion of the Utica Shale play. As of June 30, 2014, we owned an interest in approximately 2,900 gross wells. We are engaged in two business segments: Oil and Gas Exploration and Production and Gas Marketing. | |
The accompanying unaudited condensed consolidated financial statements include the accounts of PDC, our wholly owned subsidiaries, and our proportionate share of PDCM and our affiliated partnerships. Pursuant to the proportionate consolidation method, our accompanying condensed consolidated financial statements include our pro rata share of assets, liabilities, revenues and expenses of the entities which we proportionately consolidate. All material intercompany accounts and transactions have been eliminated in consolidation. | |
In our opinion, the accompanying condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in audited financial statements have been condensed or omitted. The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and notes thereto included in our 2013 Form 10-K. Our results of operations and cash flows for the three and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the full year or any other future period. | |
Certain reclassifications have been made to prior period financial statements to conform to the current year presentation. These reclassifications had no impact on previously reported cash flows, net income, earnings per share or shareholders' equity. |
Recent_Accounting_Standards
Recent Accounting Standards | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Recently Adopted Accounting Standard | |
On January 1, 2014, we adopted changes issued by the Financial Accounting Standards Board ("FASB") regarding the accounting for income taxes. The change provides clarification on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. Adoption of these changes had no impact on the condensed consolidated financial statements. | |
Recently Issued Accounting Standards | |
In April 2014, the FASB issued changes related to the criteria for determining which disposals can be presented as discontinued operations and modified related disclosure requirements. Under the new pronouncement, a discontinued operation is defined as a component of an entity that either has been disposed of or is classified as held for sale and represents a strategic shift that has a major effect on the entity's operations and financial results. These changes are to be applied prospectively for new disposals or components of an entity classified as held for sale during interim and annual periods beginning after December 15, 2014, with early adoption permitted. We are currently evaluating the impact these changes will have on our condensed consolidated financial statements. | |
In May 2014, the FASB and the International Accounting Standards Board ("IASB") issued their converged standard on revenue recognition that provides a single, comprehensive model that entities will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The standard outlines a five-step approach to apply the underlying principle: (a) identify the contract with the customer, (b) identify the separate performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to separate performance obligations and (e) recognize revenue when (or as) each performance obligation is satisfied. The revenue standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and can be adopted under the full retrospective method or simplified transition method. Early adoption is not permitted. We plan to adopt the revenue standard beginning January 1, 2017 and are currently evaluating the impact these changes will have on our condensed consolidated financial statements. |
Fair_Value_Measurements_and_Di
Fair Value Measurements and Disclosures | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Fair Value, Measurement Inputs, Disclosure | ' | |||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||||||
Determination of fair value. Our fair value measurements are estimated pursuant to a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, giving the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability, and may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The three levels of inputs that may be used to measure fair value are defined as: | ||||||||||||||||||||||||
Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||||||||||||||||||||
Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived from observable market data by correlation or other means. | ||||||||||||||||||||||||
Level 3 – Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity. | ||||||||||||||||||||||||
Derivative Financial Instruments. We measure the fair value of our derivative instruments based on a pricing model that utilizes market-based inputs, including, but not limited to, the contractual price of the underlying position, current market prices, crude oil and natural gas forward curves, discount rates such as the LIBOR curve for a similar duration of each outstanding position, volatility factors and nonperformance risk. Nonperformance risk considers the effect of our credit standing on the fair value of derivative liabilities and the effect of our counterparties' credit standings on the fair value of derivative assets. Both inputs to the model are based on published credit default swap rates and the duration of each outstanding derivative position. | ||||||||||||||||||||||||
We validate our fair value measurement through the review of counterparty statements and other supporting documentation, the determination that the source of the inputs is valid, the corroboration of the original source of inputs through access to multiple quotes, if available, or other information and monitoring changes in valuation methods and assumptions. While we use common industry practices to develop our valuation techniques and believe our valuation method is appropriate and consistent with those used by other market participants, changes in our pricing methodologies or the underlying assumptions could result in significantly different fair values. | ||||||||||||||||||||||||
Our fixed-price swaps, basis swaps and physical purchases are included in Level 2 and our collars, calls and physical sales are included in Level 3. The following table presents, for each applicable level within the fair value hierarchy, our derivative assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis: | ||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
Significant Other | Significant | Total | Significant Other | Significant | Total | |||||||||||||||||||
Observable | Unobservable | Observable | Unobservable | |||||||||||||||||||||
Inputs | Inputs | Inputs | Inputs | |||||||||||||||||||||
(Level 2) | (Level 3) | (Level 2) | (Level 3) | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commodity-based derivative contracts | $ | 1,226 | $ | 611 | $ | 1,837 | $ | 5,325 | $ | 2,385 | $ | 7,710 | ||||||||||||
Basis protection derivative contracts | 104 | 2 | 106 | 463 | — | 463 | ||||||||||||||||||
Total assets | 1,330 | 613 | 1,943 | 5,788 | 2,385 | 8,173 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Commodity-based derivative contracts | 66,652 | 7,393 | 74,045 | 17,537 | 988 | 18,525 | ||||||||||||||||||
Basis protection derivative contracts | 208 | — | 208 | 5 | — | 5 | ||||||||||||||||||
Total liabilities | 66,860 | 7,393 | 74,253 | 17,542 | 988 | 18,530 | ||||||||||||||||||
Net asset (liability) | $ | (65,530 | ) | $ | (6,780 | ) | $ | (72,310 | ) | $ | (11,754 | ) | $ | 1,397 | $ | (10,357 | ) | |||||||
The following table presents a reconciliation of our Level 3 assets measured at fair value: | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Fair value, net asset, beginning of period | $ | 105 | $ | 7,663 | $ | 1,397 | $ | 13,669 | ||||||||||||||||
Changes in fair value included in statement of operations line item: | ||||||||||||||||||||||||
Commodity price risk management gain (loss), net | (7,501 | ) | 2,834 | (8,896 | ) | 103 | ||||||||||||||||||
Sales from natural gas marketing | (4 | ) | 22 | (26 | ) | 6 | ||||||||||||||||||
Settlements included in statement of operations line items: | ||||||||||||||||||||||||
Commodity price risk management gain (loss), net | 621 | (2,246 | ) | 740 | (5,479 | ) | ||||||||||||||||||
Sales from natural gas marketing | (1 | ) | (3 | ) | 5 | (29 | ) | |||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | (4,366 | ) | — | (4,366 | ) | ||||||||||||||||||
Fair value, net asset end of period | $ | (6,780 | ) | $ | 3,904 | $ | (6,780 | ) | $ | 3,904 | ||||||||||||||
Net change in fair value of unsettled derivatives included in statement of operations line item: | ||||||||||||||||||||||||
Commodity price risk management loss, net | $ | (3,041 | ) | $ | (1,717 | ) | $ | (4,327 | ) | $ | (3,652 | ) | ||||||||||||
Sales from natural gas marketing | (2 | ) | 22 | (4 | ) | 10 | ||||||||||||||||||
Total | $ | (3,043 | ) | $ | (1,695 | ) | $ | (4,331 | ) | $ | (3,642 | ) | ||||||||||||
The significant unobservable input used in the fair value measurement of our derivative contracts is the implied volatility curve, which is provided by a third-party vendor. A significant increase or decrease in the implied volatility, in isolation, would have a directionally similar effect resulting in a significantly higher or lower fair value measurement of our Level 3 derivative contracts. | ||||||||||||||||||||||||
Non-Derivative Financial Assets and Liabilities | ||||||||||||||||||||||||
The carrying value of the financial instruments included in current assets and current liabilities approximate fair value due to the short-term maturities of these instruments. | ||||||||||||||||||||||||
The liability associated with our non-qualified deferred compensation plan for non-employee directors may be settled in cash or shares of our common stock. The carrying value of this obligation is based on the quoted market price of our common stock, which is a Level 1 input. | ||||||||||||||||||||||||
The portion of our long-term debt related to our revolving credit facility, as well as our proportionate share of PDCM's credit facility and second lien term loan, approximates fair value due to the variable nature of related interest rates. We have not elected to account for the portion of our debt related to our senior notes under the fair value option; however, as of June 30, 2014, we estimate the fair value of the portion of our long-term debt related to our 3.25% convertible senior notes due 2016 to be $183.2 million, or 159.3% of par value, and the portion related to our 7.75% senior notes due 2022 to be $557.5 million, or 111.5% of par value. We determined these valuations based upon measurements of trading activity and broker and/or dealer quotes, respectively, which are published market prices, and therefore are Level 2 inputs. | ||||||||||||||||||||||||
Concentration of Risk | ||||||||||||||||||||||||
Derivative Counterparties. Our derivative arrangements expose us to credit risk of nonperformance by our counterparties. We primarily use financial institutions who are also lenders under our revolving credit facility as counterparties to our derivative contracts. To date, we have had no counterparty default losses relating to our derivative arrangements. We have evaluated the credit risk of our derivative assets from our counterparties using relevant credit market default rates, giving consideration to amounts outstanding for each counterparty and the duration of each outstanding derivative position. Based on our evaluation, we have determined that the potential impact of nonperformance of our counterparties on the fair value of our derivative instruments was not significant at June 30, 2014, taking into account the estimated likelihood of nonperformance. | ||||||||||||||||||||||||
The following table presents the counterparties that expose us to credit risk as of June 30, 2014 with regard to our derivative assets: | ||||||||||||||||||||||||
Counterparty Name | Fair Value of | |||||||||||||||||||||||
Derivative Assets | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Wells Fargo Bank, N.A. (1) | $ | 518 | ||||||||||||||||||||||
Bank of Montreal (1) | 432 | |||||||||||||||||||||||
JP Morgan Chase Bank, N.A (1) | 412 | |||||||||||||||||||||||
Bank of Nova Scotia (1) | 298 | |||||||||||||||||||||||
Other lenders in our revolving credit facility | 239 | |||||||||||||||||||||||
Various (2) | 44 | |||||||||||||||||||||||
Total | $ | 1,943 | ||||||||||||||||||||||
__________ | ||||||||||||||||||||||||
(1)Major lender in our revolving credit facility. See Note 7, Long-Term Debt. | ||||||||||||||||||||||||
(2)Represents a total of 31 counterparties. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ' | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | ||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||||
Our results of operations and operating cash flows are affected by changes in market prices for crude oil, natural gas and NGLs. To manage a portion of our exposure to price volatility from producing crude oil and natural gas, we utilize the following economic hedging strategies for each of our business segments. | |||||||||||||||||
• | For crude oil and natural gas sales, we enter into derivative contracts to protect against price declines in future periods. While we structure these derivatives to reduce our exposure to changes in price associated with the derivative commodity, they also limit the benefit we might otherwise have received from price increases in the physical market; and | ||||||||||||||||
• | For natural gas marketing, we enter into fixed-price physical purchase and sale agreements that qualify as derivative contracts. In order to offset the fixed-price physical derivatives in our natural gas marketing, we enter into financial derivative instruments that have the effect of locking in the prices we will receive or pay for the same volumes and period, offsetting the physical derivative. | ||||||||||||||||
We believe our derivative instruments continue to be effective in achieving the risk management objectives for which they were intended. As of June 30, 2014, we had derivative instruments, which were comprised of collars, fixed-price swaps, basis protection swaps and physical sales and purchases, in place for a portion of our anticipated production through 2017 for a total of 53,234 BBtu of natural gas and 10,238 MBbls of crude oil. The majority of our derivative contracts are entered into at no cost to us as we hedge our anticipated production at the then-prevailing commodity market prices. | |||||||||||||||||
We have elected not to designate any of our derivative instruments as hedges and therefore do not qualify for use of hedge accounting. Accordingly, changes in the fair value of our derivative instruments are recorded in the statements of operations. Changes in the fair value of derivative instruments related to our Oil and Gas Exploration and Production segment are recorded in commodity price risk management, net. Changes in the fair value of derivative instruments related to our Gas Marketing segment are recorded in sales from and cost of natural gas marketing. | |||||||||||||||||
The following table presents the location and fair value amounts of our derivative instruments on the condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013: | |||||||||||||||||
Fair Value | |||||||||||||||||
Derivatives instruments: | Balance sheet line item | June 30, 2014 | 31-Dec-13 | ||||||||||||||
(in thousands) | |||||||||||||||||
Derivative assets: | Current | ||||||||||||||||
Commodity contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | $ | 519 | $ | 2,016 | ||||||||||||
Related to natural gas marketing | Fair value of derivatives | 264 | 361 | ||||||||||||||
Basis protection contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | — | 195 | ||||||||||||||
Related to natural gas marketing | Fair value of derivatives | 2 | — | ||||||||||||||
785 | 2,572 | ||||||||||||||||
Non-current | |||||||||||||||||
Commodity contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | 721 | 5,055 | ||||||||||||||
Related to natural gas marketing | Fair value of derivatives | 190 | 278 | ||||||||||||||
Basis protection contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | 247 | 268 | ||||||||||||||
1,158 | 5,601 | ||||||||||||||||
Total derivative assets | $ | 1,943 | $ | 8,173 | |||||||||||||
Derivative liabilities: | Current | ||||||||||||||||
Commodity contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | $ | 50,434 | $ | 15,263 | ||||||||||||
Related to natural gas marketing | Fair value of derivatives | 196 | 247 | ||||||||||||||
Basis protection contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | 207 | — | ||||||||||||||
Related to natural gas marketing | Fair value of derivatives | 1 | 5 | ||||||||||||||
50,838 | 15,515 | ||||||||||||||||
Non-current | |||||||||||||||||
Commodity contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | 23,255 | 2,782 | ||||||||||||||
Related to natural gas marketing | Fair value of derivatives | 160 | 233 | ||||||||||||||
23,415 | 3,015 | ||||||||||||||||
Total derivative liabilities | $ | 74,253 | $ | 18,530 | |||||||||||||
The following table presents the impact of our derivative instruments on our condensed consolidated statements of operations: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Condensed consolidated statement of operations line item | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | |||||||||||||||||
Commodity price risk management income (loss), net | |||||||||||||||||
Net settlements | $ | (10,429 | ) | $ | 3,903 | $ | (18,668 | ) | $ | 12,374 | |||||||
Net change in fair value of unsettled derivatives | (42,982 | ) | 20,821 | (61,898 | ) | (10,005 | ) | ||||||||||
Total commodity price risk management income (loss), net | $ | (53,411 | ) | $ | 24,724 | $ | (80,566 | ) | $ | 2,369 | |||||||
Sales from natural gas marketing | |||||||||||||||||
Net settlements | $ | (110 | ) | $ | (173 | ) | $ | (586 | ) | $ | 28 | ||||||
Net change in fair value of unsettled derivatives | 265 | 1,621 | (47 | ) | 651 | ||||||||||||
Total sales from natural gas marketing | $ | 155 | $ | 1,448 | $ | (633 | ) | $ | 679 | ||||||||
Cost of natural gas marketing | |||||||||||||||||
Net settlements | $ | 149 | $ | 225 | $ | 684 | $ | 63 | |||||||||
Net change in fair value of unsettled derivatives | (304 | ) | (1,636 | ) | (8 | ) | (559 | ) | |||||||||
Total cost of natural gas marketing | $ | (155 | ) | $ | (1,411 | ) | $ | 676 | $ | (496 | ) | ||||||
All of our financial derivative agreements contain master netting provisions that provide for the net settlement of all contracts through a single payment in the event of early termination. Our fixed-price physical purchase and sale agreements that qualify as derivative contracts are not subject to master netting provisions and are not significant. We have elected not to offset the fair value positions recorded on our condensed consolidated balance sheets. | |||||||||||||||||
The following table reflects the impact of netting agreements on gross derivative assets and liabilities as of June 30, 2014 and December 31, 2013: | |||||||||||||||||
As of June 30, 2014 | Derivatives instruments, recorded in condensed consolidated balance sheet, gross | Effect of master netting agreements | Derivative instruments, net | ||||||||||||||
(in thousands) | |||||||||||||||||
Asset derivatives: | |||||||||||||||||
Derivative instruments, at fair value | $ | 1,943 | $ | (1,165 | ) | $ | 778 | ||||||||||
Liability derivatives: | |||||||||||||||||
Derivative instruments, at fair value | $ | 74,253 | $ | (1,165 | ) | $ | 73,088 | ||||||||||
As of December 31, 2013 | Derivatives instruments, recorded in condensed consolidated balance sheet, gross | Effect of master netting agreements | Derivative instruments, net | ||||||||||||||
(in thousands) | |||||||||||||||||
Asset derivatives: | |||||||||||||||||
Derivative instruments, at fair value | $ | 8,173 | $ | (5,623 | ) | $ | 2,550 | ||||||||||
Liability derivatives: | |||||||||||||||||
Derivative instruments, at fair value | $ | 18,530 | $ | (5,623 | ) | $ | 12,907 | ||||||||||
Properties_and_Equipment
Properties and Equipment | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Oil and Gas Property [Abstract] | ' | |||||||||||||||
Property, Plant and Equipment Disclosure | ' | |||||||||||||||
PROPERTIES AND EQUIPMENT | ||||||||||||||||
The following table presents the components of properties and equipment, net of accumulated depreciation, depletion and amortization ("DD&A"): | ||||||||||||||||
June 30, 2014 | 31-Dec-13 | |||||||||||||||
(in thousands) | ||||||||||||||||
Properties and equipment, net: | ||||||||||||||||
Crude oil and natural gas properties | ||||||||||||||||
Proved | $ | 2,000,264 | $ | 1,784,466 | ||||||||||||
Unproved | 332,548 | 307,203 | ||||||||||||||
Total crude oil and natural gas properties | 2,332,812 | 2,091,669 | ||||||||||||||
Pipelines and related facilities | 21,765 | 21,781 | ||||||||||||||
Equipment and other | 30,272 | 29,246 | ||||||||||||||
Land and buildings | 13,620 | 13,617 | ||||||||||||||
Construction in progress | 83,422 | 53,810 | ||||||||||||||
Properties and equipment, at cost | 2,481,891 | 2,210,123 | ||||||||||||||
Accumulated DD&A | (653,170 | ) | (553,893 | ) | ||||||||||||
Properties and equipment, net | $ | 1,828,721 | $ | 1,656,230 | ||||||||||||
The following table presents impairment charges recorded for crude oil and natural gas properties: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Continuing operations: | ||||||||||||||||
Impairment of proved properties | $ | — | $ | — | $ | — | $ | 45,000 | ||||||||
Impairment of individually significant unproved properties | — | 671 | — | 825 | ||||||||||||
Amortization of individually insignificant unproved properties | 938 | 831 | 1,917 | 2,136 | ||||||||||||
Total continuing operations | 938 | 1,502 | 1,917 | 47,961 | ||||||||||||
Discontinued operations: | ||||||||||||||||
Amortization of individually insignificant unproved properties | — | — | — | 3 | ||||||||||||
Total discontinued operations | — | — | — | 3 | ||||||||||||
Total impairment of crude oil and natural gas properties | $ | 938 | $ | 1,502 | $ | 1,917 | $ | 47,964 | ||||||||
During the first quarter of 2013, we recognized an impairment charge of approximately $45.0 million related to all of our shallow Upper Devonian (non-Marcellus Shale) Appalachian Basin producing properties located in West Virginia and Pennsylvania previously owned directly by us, as well as through our proportionate share of PDCM. The impairment charge represented the excess of the carrying value of the assets over the estimated fair value, less cost to sell. The fair value of the assets was determined based upon estimated future cash flows from unrelated third-party bids, a Level 3 input. The impairment charge was included in the statement of operations line item impairment of crude oil and natural gas properties. See Note 12, Assets Held for Sale, Divestitures and Discontinued Operations, for additional information regarding these properties. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure | ' |
INCOME TAXES | |
We evaluate our estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws. The estimated annual effective tax rate is adjusted quarterly based upon actual results and updated operating forecasts. Consequently, based upon the mix and timing of our actual earnings compared to annual projections, our effective tax rate may vary quarterly and may make quarterly comparisons not meaningful. A tax expense or benefit unrelated to the current year income or loss is recognized in its entirety as a discrete item of tax in the period identified. The quarterly income tax provision is generally comprised of tax expense on income or tax benefit on loss at the most recent estimated annual effective tax rate, adjusted for the effect of discrete items. | |
The effective tax rate for continuing operations for the three and six months ended June 30, 2014 was a 42.2% and 42.0% benefit on loss, respectively, compared to a 37.2% expense on income and 34.2% benefit on loss for the three and six months ended June 30, 2013, respectively. The effective tax rates for the three and six months ended June 30, 2014 are based upon a full year forecasted tax provision on income and are greater than the statutory rate primarily due to nondeductible officers' compensation, partially offset by percentage depletion deductions. The effective tax rates for the three and six months ended June 30, 2013 differ from the statutory rate primarily due to net permanent additions, largely nondeductible officers' compensation, partially offset by percentage depletion deductions. For the six months ended June 30, 2013, the nondeductible item for officers' compensation exceeded our deduction for percentage depletion, thereby reducing our tax benefit rate. Additionally, state statutory limits on the utilization of our net operating losses resulted in a reduced state tax benefit. There were no significant discrete items recorded during the three and six months ended June 30, 2014 or 2013. | |
As of June 30, 2014, our gross liability for unrecognized tax benefits continues to be immaterial and was unchanged from the amount recorded at December 31, 2013. We expect our remaining liability for uncertain tax positions to decrease to zero in the current year due to the expiration of the statute of limitations. | |
As of the date of this report, we are current with our income tax filings in all applicable state jurisdictions and are not currently under examination. We continue voluntary participation in the Internal Revenue Service’s Compliance Assurance Program for the 2013 and 2014 tax years. We received a full acceptance “no change” notice from the IRS for our filed 2012 federal tax return. |
LongTerm_Debt
Long-Term Debt | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt | ' | |||||||
LONG-TERM DEBT | ||||||||
Long-term debt consists of the following: | ||||||||
June 30, 2014 | 31-Dec-13 | |||||||
(in thousands) | ||||||||
Senior notes: | ||||||||
3.25% Convertible senior notes due 2016: | ||||||||
Principal amount | $ | 115,000 | $ | 115,000 | ||||
Unamortized discount | (8,079 | ) | (10,010 | ) | ||||
3.25% Convertible senior notes due 2016, net of discount | 106,921 | 104,990 | ||||||
7.75% Senior notes due 2022 | 500,000 | 500,000 | ||||||
Total senior notes | 606,921 | 604,990 | ||||||
Credit facilities: | ||||||||
Corporate | — | — | ||||||
PDCM | 47,000 | 37,000 | ||||||
Total credit facilities | 47,000 | 37,000 | ||||||
PDCM second lien term loan | 15,000 | 15,000 | ||||||
Total debt | 668,921 | 656,990 | ||||||
Less: Current portion of long-term debt | 106,921 | — | ||||||
Long-term debt | $ | 562,000 | $ | 656,990 | ||||
Senior Notes | ||||||||
3.25% Convertible Senior Notes Due 2016. In November 2010, we issued $115 million aggregate principal amount 3.25% convertible senior notes due May 15, 2016 (the "Convertible Notes") in a private placement to qualified institutional buyers. Interest is payable semi-annually in arrears on each May 15 and November 15. The indenture governing the notes contains certain non-financial covenants. We allocated the gross proceeds of the Convertible Notes between the liability and equity components of the debt. The initial $94.3 million liability component was determined based upon the fair value of similar debt instruments with similar terms, excluding the conversion feature, and priced on the same day we issued the Convertible Notes. The original issue discount and capitalized debt issuance costs are being amortized to interest expense over the life of the notes using an effective interest rate of 7.4%. | ||||||||
Upon conversion, the Convertible Notes may be settled, at our election, in shares of our common stock, cash or a combination of cash and shares of our common stock. We have initially elected a net-settlement method to satisfy our conversion obligation, which allows us to settle the principal amount of the Convertible Notes in cash and to settle the excess conversion value in shares, as well as cash in lieu of fractional shares. | ||||||||
The Convertible Notes were convertible at the option of holders as of June 30, 2014. The conversion right was triggered on June 20, 2014, when the closing sale price of our common stock on the NASDAQ Global Select Market exceeded $55.12 (130% of the applicable conversion price) for the 20th trading day in the 30 consecutive trading days ending on June 30, 2014. In the event a holder elects to convert its note, we expect to fund any cash settlement of any such conversion from working capital and/or borrowings under our revolving credit facility. As a result of the Convertible Notes becoming convertible, we have included the carrying value of the Convertible Notes, net of discount, in the current portion of long-term debt on our condensed consolidated balance sheet as of June 30, 2014. We will reassess the convertibility of the Convertible Notes, and the related balance sheet classification, on a quarterly basis. In the event that a holder exercises the right to convert its note, we will write-off a ratable portion of the remaining debt issuance costs and unamortized discount to interest expense. Based on a June 30, 2014 stock price of $63.15, the “if-converted” value of the Convertible Notes exceeded the principal amount by approximately $56.3 million. Through August 8, 2014, no holders of the Convertible Notes have elected to convert their notes. | ||||||||
7.75% Senior Notes Due 2022. In October 2012, we issued $500 million aggregate principal amount 7.75% senior notes due October 15, 2022 (the “2022 Senior Notes”) in a private placement to qualified institutional buyers. Interest on the 2022 Senior Notes is payable semi-annually in arrears on each April 15 and October 15. The indenture governing the notes contains customary restrictive incurrence covenants. Capitalized debt issuance costs are being amortized as interest expense over the life of the notes using the effective interest method. | ||||||||
As of June 30, 2014, we were in compliance with all covenants related to the Convertible Notes and the 2022 Senior Notes, and expect to remain in compliance throughout the next 12-month period. | ||||||||
Credit Facilities | ||||||||
Revolving Credit Facility. In May 2013, we entered into a Third Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A. as administrative agent and other lenders party thereto. This agreement amends and restates the credit agreement dated November 2010 and expires in May 2018. The revolving credit facility is available for working capital requirements, capital expenditures, acquisitions, general corporate purposes and to support letters of credit. The revolving credit facility provides for a maximum of $1 billion in allowable borrowing capacity, subject to the borrowing base. As of June 30, 2014, the borrowing base was $450 million. The borrowing base is based on, among other things, the loan value assigned to the proved reserves attributable to our and our subsidiaries' crude oil and natural gas interests, excluding proved reserves attributable to PDCM and our affiliated partnerships. The borrowing base is subject to a semi-annual size redetermination based upon quantification of our reserves at June 30 and December 31, and is also subject to a redetermination upon the occurrence of certain events. The revolving credit facility is secured by a pledge of the stock of certain of our subsidiaries, mortgages of certain producing crude oil and natural gas properties and substantially all of our and such subsidiaries' other assets. Neither PDCM nor our affiliated partnerships are guarantors of our obligations under the revolving credit facility. We had no outstanding draws on our revolving credit facility as of June 30, 2014 or December 31, 2013. | ||||||||
As of June 30, 2014, Riley Natural Gas, a wholly-owned subsidiary of PDC, had an irrevocable standby letter of credit of approximately $11.7 million in favor of a third-party transportation service provider to secure firm transportation of the natural gas produced by third-party producers for whom we market production in the Appalachian Basin. The letter of credit expires in September 2014. The letter of credit reduces the amount of available funds under our revolving credit facility by an equal amount. As of June 30, 2014, the available funds under our revolving credit facility, including a reduction for the $11.7 million irrevocable standby letter of credit in effect, was $438.3 million. | ||||||||
The revolving credit facility contains covenants customary for agreements of this type, with the most restrictive being certain financial tests on a quarterly basis. The financial tests, as defined per the revolving credit facility, include requirements to: (a) maintain a minimum current ratio of 1.00 to 1.00 and (b) not exceed a maximum leverage ratio of 4.25 to 1.00. | ||||||||
As of June 30, 2014, we were in compliance with all the revolving credit facility covenants and expect to remain in compliance throughout the next 12-month period. | ||||||||
PDCM Credit Facility. PDCM has a credit facility dated April 2010, as amended in February 2014, with a borrowing base of $105 million, of which our proportionate share is approximately $53 million. The maximum allowable facility amount is $400 million. No principal payments are required until the credit agreement expires in April 2017, or in the event that the borrowing base falls below the outstanding balance. The credit facility is subject to and secured by PDCM's properties, including our proportionate share of such properties. The borrowing base is subject to size redetermination semi-annually based upon a valuation of PDCM's reserves at June 30 and December 31. Either PDCM or the lenders may request a redetermination upon the occurrence of certain events. The credit facility is utilized by PDCM for the exploration and development of its Marcellus Shale assets. In February 2014, PDCM entered into a sixth amendment to its credit agreement. The amendment increased the amount of future production from proved developed and producing properties that is permitted to be hedged. As of June 30, 2014, our proportionate share of PDCM's outstanding credit facility balance was $47.0 million compared to $37.0 million as of December 31, 2013. The weighted-average borrowing rate on PDCM's credit facility was 3.8% per annum as of June 30, 2014, compared to 3.7% as of December 31, 2013. | ||||||||
The credit facility contains covenants customary for agreements of this type, with the most restrictive being certain financial tests that must be met on a quarterly basis. The financial tests, as defined by the credit facility, include requirements to maintain a minimum current ratio of 1.0 to 1.0, not to exceed a debt to EBITDAX ratio of 4.25 to 1.0 (declining to 4.0 to 1.0 on July 1, 2014) and to maintain a minimum interest coverage ratio of 2.5 to 1.0. | ||||||||
As of June 30, 2014, PDCM was in compliance with all credit facility covenants and expects to remain in compliance throughout the next 12-month period. | ||||||||
PDCM Second Lien Term Loan | ||||||||
In July 2013, PDCM entered into a Second Lien Credit Agreement ("Term Loan Agreement") with Wells Fargo Energy Capital as administrative agent and a syndicate of other lenders party thereto. The aggregate commitment under the Term Loan Agreement is $30 million, of which our proportionate share is $15 million. The aggregate commitment may increase periodically up to a maximum of $75 million, as PDCM's reserve value increases and the covenants under the Term Loan Agreement allow. The Term Loan Agreement matures in October 2017. Amounts borrowed accrue interest, at PDCM's discretion, at either an alternative base rate plus a margin of 6% per annum or an adjusted LIBOR for the interest period in effect plus a margin of 7% per annum. As of June 30, 2014, amounts borrowed and outstanding on the Term Loan Agreement were $30.0 million, of which our proportionate share is $15 million. The weighted-average interest rate on the term loan was 8.5% per annum as of both June 30, 2014 and December 31, 2013. | ||||||||
The Term Loan Agreement contains financial covenants, as defined in the agreement, that must be met on a quarterly basis, including requirements to maintain a minimum current ratio of 1.0 to 1.0, not to exceed a debt to EBITDAX ratio of 4.5 to 1.0, a minimum interest coverage ratio of 2.25 to 1.0 and a present value of future net revenues to total debt ratio of 1.50 to 1.00. | ||||||||
As of June 30, 2014, PDCM was in compliance with all Term Loan Agreement covenants and expects to remain in compliance throughout the next 12-month period. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ' | |||
Asset Retirement Obligation Disclosure | ' | |||
ASSET RETIREMENT OBLIGATIONS | ||||
The following table presents the changes in carrying amounts of the asset retirement obligations associated with our working interest in crude oil and natural gas properties: | ||||
Amount | ||||
(in thousands) | ||||
Balance at beginning of period, January 1 | $ | 41,030 | ||
Obligations incurred with development activities | 341 | |||
Accretion expense | 1,716 | |||
Revisions in estimated cash flows | (134 | ) | ||
Obligations discharged with divestitures of properties and asset retirements | (2,884 | ) | ||
Balance end of period, June 30 | 40,069 | |||
Less: Current portion | (1,158 | ) | ||
Long-term portion | $ | 38,911 | ||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Commitments and Contingencies Disclosure | ' | ||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||||||||
Firm Transportation, Processing and Sales Agreements. We enter into contracts that provide firm transportation, sales and processing services on pipeline systems through which we transport or sell natural gas. Satisfaction of the volume requirements includes volumes produced by us, purchased from third parties and produced by PDCM and other third-party working interest owners. We record in our financial statements only our share of costs based upon our working interest in the wells. These contracts require us to pay these transportation and processing charges whether or not the required volumes are delivered. With the exception of contracts entered into by PDCM, the costs of any volume shortfalls are borne by PDC. | |||||||||||||||||||||||||||
The following table presents gross volume information, including our proportionate share of PDCM, related to our long-term firm transportation, sales and processing agreements for pipeline capacity as of June 30, 2014: | |||||||||||||||||||||||||||
For the Twelve Months Ending June 30, | |||||||||||||||||||||||||||
Area | 2015 | 2016 | 2017 | 2018 | 2019 and | Total | Expiration | ||||||||||||||||||||
Through | Date | ||||||||||||||||||||||||||
Expiration | |||||||||||||||||||||||||||
Natural gas (MMcf) | |||||||||||||||||||||||||||
Appalachian Basin | 19,033 | 19,862 | 20,987 | 20,987 | 114,928 | 195,797 | January 31, 2026 | ||||||||||||||||||||
Utica Shale | 2,737 | 2,745 | 2,737 | 2,737 | 13,929 | 24,885 | July 22, 2023 | ||||||||||||||||||||
Total | 21,770 | 22,607 | 23,724 | 23,724 | 128,857 | 220,682 | |||||||||||||||||||||
Dollar commitment (in thousands) | $ | 7,356 | $ | 7,530 | $ | 7,746 | $ | 7,092 | $ | 35,075 | $ | 64,799 | |||||||||||||||
On July 29, 2014, we signed a definitive agreement pursuant to which we agreed to sell our entire 50% ownership interest in PDCM to an unrelated third-party. Pursuant to the definitive agreement, approximately 137,865 MMcf and $31.1 million of our Appalachian Basin firm transportation obligation will be assumed by the buyer upon the closing of the transaction. There can be no assurance that we will be successful in closing the transaction. In addition, we may have greater than expected purchase price reductions. See Note 15, Subsequent Events, for additional information. | |||||||||||||||||||||||||||
Litigation. The Company is involved in various legal proceedings that it considers normal to its business. The Company reviews the status of these proceedings on an ongoing basis and, from time to time, may settle or otherwise resolve these matters on terms and conditions that management believes are in the best interests of the Company. There is no assurance that settlements can be reached on acceptable terms or that adverse judgments, if any, in the remaining litigation will not exceed the amounts reserved. Although the results cannot be known with certainty, we currently believe that the ultimate results of such proceedings will not have a material adverse effect on our financial position, results of operations or liquidity. | |||||||||||||||||||||||||||
Class Action Regarding 2010 and 2011 Partnership Purchases | |||||||||||||||||||||||||||
In December 2011, the Company and its wholly-owned merger subsidiary were served with an alleged class action on behalf of certain former partnership unit holders, related to its partnership repurchases completed by mergers in 2010 and 2011. The action was filed in U.S. District Court for the Central District of California and is titled Schulein v. Petroleum Development Corp. The complaint primarily alleges that the disclosures in the proxy statements issued in connection with the mergers were inadequate, and a state law breach of fiduciary duty. In January 2014, the plaintiffs were certified as a class by the court. A jury trial originally scheduled for May 2014 has been rescheduled to begin in September 2014. We have held mediation meetings with plaintiffs and have proposed a settlement to resolve the alleged class action. Our proposed settlement includes a transfer of interests, primarily net profit interests which would generate cash in future years, in a certain number of future wells, plus a lesser value in an up-front cash payment. The mediation effort is ongoing; but there can be no assurance that the mediation meetings will continue or will result in a settlement on the terms we proposed or at all. During the quarter ended June 30, 2014, we recorded a litigation charge of $20.8 million, included in general and administrative expense in the condensed consolidated statements of operations, for a total accrued liability of $24.1 million at June 30, 2014, which is included in other accrued expenses in the condensed consolidated balance sheet. If the matter proceeds to trial, plaintiffs have indicated that they will seek damages of approximately $175 million, plus pre-judgment interest. We continue to believe we have good defenses to both the asserted claims and plaintiffs’ damage calculations. | |||||||||||||||||||||||||||
Environmental. Due to the nature of the natural gas and oil industry, we are exposed to environmental risks. We have various policies and procedures designed to mitigate the risks of environmental contamination and related liabilities. We conduct periodic reviews to identify changes in our environmental risk profile. Liabilities are recorded when environmental damages resulting from past events are probable and the costs can be reasonably estimated. As of June 30, 2014 and December 31, 2013, we had accrued environmental liabilities in the amount of $6.2 million and $5.4 million, respectively, included in other accrued expenses on the condensed consolidated balance sheets. We are not aware of any environmental claims existing as of June 30, 2014 which have not been provided for or would otherwise be expected to have a material impact on our financial statements. However, there can be no assurance that current regulatory requirements will not change or unknown past non-compliance with environmental laws will not be discovered on our properties. | |||||||||||||||||||||||||||
In June 2014, we received an information request from the Environmental Protection Agency (the "EPA") pursuant to Sections 308 and 311 of the Clean Water Act (the "CWA") regarding a discharge of oil and related materials that occurred in May related to a mechanical failure during drilling at an Ohio location. The requested information relates to the facility from which the discharge occurred and details regarding the discharge. To date, the EPA has not issued any notice that a violation of the CWA occurred or sought to impose any fine or other relief in connection with the discharge. While the results cannot be predicted with certainty, we do not expect the ultimate resolution of this information request or any subsequent proceedings to have a material adverse effect on our financial condition or results of operation. | |||||||||||||||||||||||||||
Employment Agreements with Executive Officers. Each of our senior executive officers, except the current Chief Executive Officer, may be entitled to a severance payment and certain other benefits upon the termination of the officer's employment pursuant to the officer's employment agreement and/or the Company's executive severance compensation plan. The nature and amount of such benefits would vary based upon, among other things, whether the termination followed a change of control of the Company. In June 2014, we announced a leadership transition and entered into a consulting agreement with our current Chief Executive Officer pursuant to which he will provide consulting services to the Company in 2015. Under the agreement, the current Chief Executive Officer ceased to be a participant in our executive severance plan. |
Common_Stock
Common Stock | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | ' | |||||||||||||||||||||||
COMMON STOCK | ||||||||||||||||||||||||
Stock-Based Compensation Plans | ||||||||||||||||||||||||
The following table provides a summary of the impact of our outstanding stock-based compensation plans on the results of operations for the periods presented: | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Stock-based compensation expense | $ | 5,032 | $ | 4,349 | $ | 8,879 | $ | 6,951 | ||||||||||||||||
Income tax benefit | (1,912 | ) | (1,661 | ) | (3,374 | ) | (2,655 | ) | ||||||||||||||||
Net stock-based compensation expense | $ | 3,120 | $ | 2,688 | $ | 5,505 | $ | 4,296 | ||||||||||||||||
Stock Appreciation Rights ("SARs") | ||||||||||||||||||||||||
The SARs vest ratably over a three-year period and may be exercised at any point after vesting through 10 years from the date of issuance. Pursuant to the terms of the awards, upon exercise, the executive officers will receive, in shares of common stock, the excess of the market price of the award on the date of exercise over the market price of the award on the date of issuance. | ||||||||||||||||||||||||
In January 2014, the Compensation Committee awarded 88,248 SARs to our executive officers. The fair value of each SAR award was estimated on the date of grant using a Black-Scholes pricing model using the following assumptions: | ||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Expected term of award | 6 years | 6 years | ||||||||||||||||||||||
Risk-free interest rate | 2.1 | % | 1 | % | ||||||||||||||||||||
Expected volatility | 65.6 | % | 65.5 | % | ||||||||||||||||||||
Weighted-average grant date fair value per share | $ | 29.96 | $ | 21.96 | ||||||||||||||||||||
The expected life of the award was estimated using historical stock option exercise behavior data. The risk-free interest rate was based on the U.S. Treasury yields approximating the expected life of the award in effect at the time of grant. Expected volatilities were based on our historical volatility. We do not expect to pay or declare dividends in the foreseeable future. | ||||||||||||||||||||||||
The following table presents the changes in our SARs: | ||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Number of | Weighted-Average | Average Remaining Contractual | Aggregate Intrinsic | Number of | Weighted-Average | Average Remaining Contractual | Aggregate Intrinsic | |||||||||||||||||
SARs | Exercise | Term (in years) | Value (in thousands) | SARs | Exercise | Term (in years) | Value (in thousands) | |||||||||||||||||
Price | Price | |||||||||||||||||||||||
Outstanding beginning of year, January 1, | 190,763 | $ | 33.77 | 118,832 | $ | 30.8 | ||||||||||||||||||
Awarded | 88,248 | 49.57 | 87,078 | 37.18 | ||||||||||||||||||||
Outstanding at June 30, | 279,011 | 38.77 | 8.3 | 6,803 | 205,910 | 33.5 | 8.6 | 3,703 | ||||||||||||||||
Vested and expected to vest at June 30, | 268,453 | 38.53 | 8.3 | 6,609 | 196,421 | 33.4 | 8.6 | 3,552 | ||||||||||||||||
Exercisable at June 30, | 109,920 | 32.71 | 7.3 | 3,346 | 67,069 | 29.99 | 7.6 | 1,441 | ||||||||||||||||
Total compensation cost related to SARs granted, net of estimated forfeitures, and not yet recognized in our condensed consolidated statement of operations as of June 30, 2014 was $3.5 million. The cost is expected to be recognized over a weighted-average period of 2.0 years. | ||||||||||||||||||||||||
Restricted Stock Awards | ||||||||||||||||||||||||
Time-Based Awards. The fair value of the time-based restricted shares is amortized ratably over the requisite service period, primarily three years. The time-based shares vest ratably on each annual anniversary following the grant date if the participant is continuously employed. | ||||||||||||||||||||||||
In January 2014, the Compensation Committee awarded a total of 104,467 time-based restricted shares to our executive officers that vest ratably over a three-year period ending on January 16, 2017. | ||||||||||||||||||||||||
The following table presents the changes in non-vested time-based awards to all employees, including executive officers, for the six months ended June 30, 2014: | ||||||||||||||||||||||||
Shares | Weighted-Average | |||||||||||||||||||||||
Grant-Date | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
Non-vested at December 31, 2013 | 651,781 | $ | 36.36 | |||||||||||||||||||||
Granted | 280,835 | 56.56 | ||||||||||||||||||||||
Vested | (202,587 | ) | 36.73 | |||||||||||||||||||||
Forfeited | (18,385 | ) | 38.56 | |||||||||||||||||||||
Non-vested at June 30, 2014 | 711,644 | 44.18 | ||||||||||||||||||||||
As of/Year Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||
Total intrinsic value of time-based awards vested | $ | 11,690 | $ | 8,544 | ||||||||||||||||||||
Total intrinsic value of time-based awards non-vested | 44,940 | 37,082 | ||||||||||||||||||||||
Market price per common share as of June 30, | 63.15 | 51.48 | ||||||||||||||||||||||
Weighted-average grant date fair value per share | 56.56 | 44.24 | ||||||||||||||||||||||
Total compensation cost related to non-vested time-based awards, net of estimated forfeitures, and not yet recognized in our condensed consolidated statements of operations as of June 30, 2014 was $24.0 million. This cost is expected to be recognized over a weighted-average period of 2.2 years. | ||||||||||||||||||||||||
Market-Based Awards. The fair value of the market-based restricted shares is amortized ratably over the requisite service period, primarily three years. The market-based shares vest if the participant is continuously employed throughout the performance period and the market-based performance measure is achieved, with a maximum vesting period of five years. All compensation cost related to the market-based awards will be recognized if the requisite service period is fulfilled, even if the market condition is not achieved. | ||||||||||||||||||||||||
In January 2014, the Compensation Committee awarded a total of 42,151 market-based restricted shares to our executive officers. In addition to continuous employment, the vesting of these shares is contingent on the Company's total shareholder return ("TSR"), which is essentially the Company’s stock price change including any dividends, as compared to the TSR of a set group of 15 peer companies. The shares are measured over a three-year period ending on December 31, 2016 and can result in a payout between 0% and 200% of the total shares awarded. The weighted-average grant date fair value per market-based share for these awards granted was computed using the Monte Carlo pricing model using the following assumptions: | ||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Expected term of award | 3 years | 3 years | ||||||||||||||||||||||
Risk-free interest rate | 0.8 | % | 0.4 | % | ||||||||||||||||||||
Expected volatility | 55.2 | % | 56.6 | % | ||||||||||||||||||||
Weighted-average grant date fair value per share | $ | 56.87 | $ | 49.04 | ||||||||||||||||||||
The expected term of the awards was based on the requisite service period. The risk-free interest rate was based on the U.S. Treasury yields in effect at the time of grant and extrapolated to approximate the life of the award. The expected volatility was based on our historical volatility. | ||||||||||||||||||||||||
The following table presents the change in non-vested market-based awards during six months ended June 30, 2014: | ||||||||||||||||||||||||
Shares | Weighted-Average | |||||||||||||||||||||||
Grant-Date | ||||||||||||||||||||||||
Fair Value per Share | ||||||||||||||||||||||||
Non-vested at December 31, 2013 | 72,111 | $ | 43.75 | |||||||||||||||||||||
Granted | 42,151 | 56.87 | ||||||||||||||||||||||
Non-vested at June 30, 2014 | 114,262 | 48.59 | ||||||||||||||||||||||
As of/Year Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||
Total intrinsic value of market-based awards non-vested | $ | 7,216 | $ | 4,235 | ||||||||||||||||||||
Market price per common share as of June 30, | 63.15 | 51.48 | ||||||||||||||||||||||
Weighted-average grant date fair value per share | 56.87 | 49.04 | ||||||||||||||||||||||
Total compensation cost related to non-vested market-based awards, net of estimated forfeitures, and not yet recognized in our condensed consolidated statement of operations as of June 30, 2014 was $3.1 million. This cost is expected to be recognized over a weighted-average period of 2.0 years. |
Earnings_per_share
Earnings per share | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
EARNINGS PER SHARE | ||||||||||||
Basic earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is similarly computed except that the denominator includes the effect, using the treasury stock method, of unvested restricted stock, outstanding SARs, stock options, Convertible Notes and shares held pursuant to our non-employee director deferred compensation plan, if including such potential shares of common stock is dilutive. | ||||||||||||
The following table presents a reconciliation of the weighted-average diluted shares outstanding: | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(in thousands) | ||||||||||||
Weighted-average common shares outstanding - basic | 35,762 | 30,332 | 35,726 | 30,301 | ||||||||
Dilutive effect of: | ||||||||||||
Restricted stock | — | 313 | — | — | ||||||||
SARs | — | 26 | — | — | ||||||||
Stock options | — | 1 | — | — | ||||||||
Non-employee director deferred compensation | — | 4 | — | — | ||||||||
Convertible notes | — | 338 | — | — | ||||||||
Weighted-average common shares and equivalents outstanding - diluted | 35,762 | 31,014 | 35,726 | 30,301 | ||||||||
We reported a net loss for the three and six months ended June 30, 2014 and for the six months ended June 30, 2013. As a result, our basic and diluted weighted-average common shares outstanding were the same due to the fact that the effect of the common share equivalents was anti-dilutive. | ||||||||||||
The following table presents the weighted-average common share equivalents excluded from the calculation of diluted earnings per share due to their anti-dilutive effect: | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(in thousands) | ||||||||||||
Weighted-average common share equivalents excluded from diluted earnings | ||||||||||||
per share due to their anti-dilutive effect: | ||||||||||||
Restricted stock | 896 | 5 | 859 | 893 | ||||||||
SARs | 92 | 20 | 96 | 54 | ||||||||
Stock options | 4 | — | 4 | 7 | ||||||||
Non-employee director deferred compensation | 5 | — | 5 | 4 | ||||||||
Convertible notes | 881 | — | 758 | 206 | ||||||||
Total anti-dilutive common share equivalents | 1,878 | 25 | 1,722 | 1,164 | ||||||||
In November 2010, we issued our Convertible Notes, which give the holders the right to convert the aggregate principal amount into 2.7 million shares of our common stock at a conversion price of $42.40 per share. The Convertible Notes could be included in the dilutive earnings per share calculation using the treasury stock method if the average market share price exceeds the $42.40 conversion price during the period presented. Shares issuable upon conversion of the Convertible Notes were excluded from the diluted earnings per share calculation for the three and six months ended June 30, 2014 and the six months ended June 30, 2013 as the effect would be anti-dilutive to our earnings per share. Shares issuable upon conversion of the Convertible Notes were included in the diluted earnings per share calculation for the three months ended June 30, 2013 as the average market price during the period exceeded the conversion price. |
Divestitures_and_Discontinued_
Divestitures and Discontinued Operations | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Disposal Groups, Including Discontinued Operations, Disclosure | ' | ||||||||
ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS | |||||||||
Appalachian Basin. In December 2013, we divested our shallow Upper Devonian (non-Marcellus Shale) Appalachian Basin crude oil and natural gas properties previously owned directly by us, as well as through our proportionate share of PDCM, for aggregate consideration of approximately $20.6 million, of which our share of the proceeds was approximately $5.1 million. We received our proportionate share of cash proceeds of $0.9 million and recorded our proportionate share of a note receivable and account receivable from the buyer of $3.3 million and $0.8 million, respectively. Concurrent with the closing of the transaction, our $6.7 million irrevocable standby letter of credit and an agreement for firm transportation services was released and novated to the buyer. We, through our ownership in PDCM, retained all zones, formations and intervals below the Upper Devonian formation including the Marcellus Shale, Utica Shale and Huron Shale. The divestiture of these assets did not meet the requirements to be accounted for as discontinued operations. On July 29, 2014, we signed a definitive agreement to sell our entire 50% interest in PDCM to an unrelated third-party. See Note 15, Subsequent Events, for additional information.There can be no assurance we will be successful in closing the transaction. In addition, we may have greater than expected purchase price reductions. | |||||||||
Piceance Basin and NECO. In June 2013, we divested our Piceance Basin, NECO and certain other non-core Colorado oil and gas properties, leasehold mineral interests and related assets for total consideration of approximately $177.6 million, with an additional $17.0 million paid to our non-affiliated investor partners in our affiliated partnerships. The sale resulted in a pre-tax loss of $2.3 million. Additionally, certain firm transportation obligations and natural gas hedging positions were assumed by the buyer. Following the sale, we do not have significant continuing involvement in the operations of, or cash flows from, the Piceance Basin and NECO oil and gas properties. Accordingly, the results of operations related to these assets have been separately reported as discontinued operations in the condensed consolidated statement of operations for the three months ended June 30, 2013. The sale of our other non-core Colorado oil and gas properties did not meet the requirements to be accounted for as discontinued operations. | |||||||||
The following table presents statement of operations data related to our discontinued operations for the Piceance Basin and NECO divestitures: | |||||||||
Condensed consolidated statements of operations - discontinued operations | Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | |||||||
Revenues | |||||||||
Crude oil, natural gas and NGLs sales | $ | 10,182 | $ | 20,456 | |||||
Sales from natural gas marketing | 586 | 1,036 | |||||||
Well operations, pipeline income and other | 409 | 859 | |||||||
Total revenues | 11,177 | 22,351 | |||||||
Costs, expenses and other | |||||||||
Production costs | 2,564 | 7,957 | |||||||
Cost of natural gas marketing | 540 | 994 | |||||||
Depreciation, depletion and amortization | — | 2,258 | |||||||
Other | 1,959 | 2,454 | |||||||
Loss on sale of properties and equipment | 1,076 | 1,076 | |||||||
Total costs, expenses and other | 6,139 | 14,739 | |||||||
Income from discontinued operations | 5,038 | 7,612 | |||||||
Provision for income taxes | (1,622 | ) | (2,659 | ) | |||||
Income from discontinued operations, net of tax | $ | 3,416 | $ | 4,953 | |||||
Transactions_with_Affiliates_a
Transactions with Affiliates and Other Related Parties | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions Disclosure | ' | ||||||||||||||||
TRANSACTIONS WITH AFFILIATES | |||||||||||||||||
PDCM and Affiliated Partnerships. Our Gas Marketing segment markets the natural gas produced by PDCM and our affiliated partnerships in the Appalachian Basin. Our cost of natural gas marketing includes $10.7 million and $20.1 million for the three and six months ended June 30, 2014, respectively, related to the marketing of natural gas on behalf of PDCM compared to $4.1 million and $7.8 million for the three and six months ended June 30, 2013, respectively. Our cost of natural gas marketing includes $0.3 million and $0.6 million for the three and six months ended June 30, 2013, respectively, related to the marketing of natural gas on behalf of our affiliated partnerships. | |||||||||||||||||
Amounts due from/to affiliates primarily relate to amounts billed for certain well operating and administrative services provided to PDCM and, to a lesser extent, costs resulting from audit and tax preparation services for our affiliated partnerships. Amounts billed to PDCM for these services were $2.1 million and $4.4 million in the three and six months ended June 30, 2014, respectively, compared to $3.4 million and $6.8 million in the three and six months ended June 30, 2013, respectively. Our statements of operations include only our proportionate share of these billings. The following table presents the statement of operations line item in which our proportionate share is recorded and the amount for each of the periods presented: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Condensed consolidated statement of operations line item | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | |||||||||||||||||
Production costs | $ | 417 | $ | 986 | $ | 1,022 | $ | 2,053 | |||||||||
Exploration expense | — | 134 | — | 239 | |||||||||||||
General and administrative expense | 625 | 618 | 1,181 | 1,132 | |||||||||||||
Business_Segments
Business Segments | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Reporting Disclosure | ' | |||||||||||||||
BUSINESS SEGMENTS | ||||||||||||||||
We separate our operating activities into two segments: Oil and Gas Exploration and Production and Gas Marketing. All material inter-company accounts and transactions between segments have been eliminated. | ||||||||||||||||
Oil and Gas Exploration and Production. Our Oil and Gas Exploration and Production segment includes all of our crude oil and natural gas properties. The segment represents revenues and expenses from the production and sale of crude oil, natural gas and NGLs. Segment revenue includes crude oil, natural gas and NGLs sales, commodity price risk management, net and well operation and pipeline income. Segment income (loss) consists of segment revenue less production cost, exploration expense, impairment of crude oil and natural gas properties, direct general and administrative expense and depreciation, depletion and amortization expense. | ||||||||||||||||
Gas Marketing. Our Gas Marketing segment purchases, aggregates and resells natural gas produced by us and others. Segment income (loss) primarily represents sales from natural gas marketing and direct interest income, less costs of natural gas marketing and direct general and administrative expense. | ||||||||||||||||
Unallocated amounts. Unallocated income includes unallocated other revenue, less corporate general administrative expense, corporate DD&A expense, interest income and interest expense. Unallocated assets include assets utilized for corporate, general and administrative purposes, as well as assets not specifically included in our two business segments. | ||||||||||||||||
The following tables present our segment information: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Segment revenues: | ||||||||||||||||
Oil and gas exploration and production | $ | 87,057 | $ | 103,226 | $ | 190,382 | $ | 161,382 | ||||||||
Gas marketing | 22,415 | 18,079 | 49,352 | 31,749 | ||||||||||||
Total revenues | $ | 109,472 | $ | 121,305 | $ | 239,734 | $ | 193,131 | ||||||||
Segment income (loss) before income taxes: | ||||||||||||||||
Oil and gas exploration and production | $ | 6,265 | $ | 56,372 | $ | 40,271 | $ | 22,671 | ||||||||
Gas marketing | (13 | ) | 13 | 54 | (52 | ) | ||||||||||
Unallocated | (54,985 | ) | (30,092 | ) | (92,572 | ) | (59,773 | ) | ||||||||
Income (loss) before income taxes | $ | (48,733 | ) | $ | 26,293 | $ | (52,247 | ) | $ | (37,154 | ) | |||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Segment assets: | ||||||||||||||||
Oil and gas exploration and production | $ | 1,977,181 | $ | 1,937,251 | ||||||||||||
Gas marketing | 23,669 | 20,342 | ||||||||||||||
Unallocated | 85,575 | 67,610 | ||||||||||||||
Total assets | $ | 2,086,425 | $ | 2,025,203 | ||||||||||||
Subsequent_Events_Notes
Subsequent Events (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
SUBSEQUENT EVENTS | |
On July 29, 2014, we signed a definitive agreement pursuant to which we agreed to sell our entire 50% ownership interest in PDCM to an unrelated third-party for aggregate consideration of approximately $250 million, subject to certain purchase price adjustments. Our net pre-tax proceeds from the sale, after our share of PDCM's debt repayment and other working capital adjustments, is expected to be approximately $190 million, comprised of $150 million in cash and a $40 million promissory note due in 2020. The transaction includes the buyer's assumption of our share of the firm transportation obligations related to the assets owned by PDCM as well as our share of certain of PDCM's natural gas hedging positions for the years 2014 and 2015. The divestiture is expected to close in October 2014. There can be no assurance we will be successful in closing the transaction. In addition, we may have greater than expected purchase price reductions. |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Consolidation, Policy | ' |
The accompanying unaudited condensed consolidated financial statements include the accounts of PDC, our wholly owned subsidiaries, and our proportionate share of PDCM and our affiliated partnerships. Pursuant to the proportionate consolidation method, our accompanying condensed consolidated financial statements include our pro rata share of assets, liabilities, revenues and expenses of the entities which we proportionately consolidate. All material intercompany accounts and transactions have been eliminated in consolidation. | |
Basis of Accounting, Policy | ' |
In our opinion, the accompanying condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in audited financial statements have been condensed or omitted. The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and notes thereto included in our 2013 Form 10-K. Our results of operations and cash flows for the three and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the full year or any other future period. | |
Reclassification, Policy | ' |
Certain reclassifications have been made to prior period financial statements to conform to the current year presentation. These reclassifications had no impact on previously reported cash flows, net income, earnings per share or shareholders' equity. | |
Accounting Standards Recently Adopted | ' |
On January 1, 2014, we adopted changes issued by the Financial Accounting Standards Board ("FASB") regarding the accounting for income taxes. The change provides clarification on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. Adoption of these changes had no impact on the condensed consolidated financial statements. | |
Recently Issued Accounting Policy [Policy Text Block] | ' |
In April 2014, the FASB issued changes related to the criteria for determining which disposals can be presented as discontinued operations and modified related disclosure requirements. Under the new pronouncement, a discontinued operation is defined as a component of an entity that either has been disposed of or is classified as held for sale and represents a strategic shift that has a major effect on the entity's operations and financial results. These changes are to be applied prospectively for new disposals or components of an entity classified as held for sale during interim and annual periods beginning after December 15, 2014, with early adoption permitted. We are currently evaluating the impact these changes will have on our condensed consolidated financial statements. | |
In May 2014, the FASB and the International Accounting Standards Board ("IASB") issued their converged standard on revenue recognition that provides a single, comprehensive model that entities will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The standard outlines a five-step approach to apply the underlying principle: (a) identify the contract with the customer, (b) identify the separate performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to separate performance obligations and (e) recognize revenue when (or as) each performance obligation is satisfied. The revenue standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and can be adopted under the full retrospective method or simplified transition method. Early adoption is not permitted. We plan to adopt the revenue standard beginning January 1, 2017 and are currently evaluating the impact these changes will have on our condensed consolidated financial statements. | |
Earnings Per Share, Policy | ' |
Basic earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is similarly computed except that the denominator includes the effect, using the treasury stock method, of unvested restricted stock, outstanding SARs, stock options, Convertible Notes and shares held pursuant to our non-employee director deferred compensation plan, if including such potential shares of common stock is dilutive. |
Fair_Value_Measurements_and_Di1
Fair Value Measurements and Disclosures (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||||||||||
Our fixed-price swaps, basis swaps and physical purchases are included in Level 2 and our collars, calls and physical sales are included in Level 3. The following table presents, for each applicable level within the fair value hierarchy, our derivative assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis: | ||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
Significant Other | Significant | Total | Significant Other | Significant | Total | |||||||||||||||||||
Observable | Unobservable | Observable | Unobservable | |||||||||||||||||||||
Inputs | Inputs | Inputs | Inputs | |||||||||||||||||||||
(Level 2) | (Level 3) | (Level 2) | (Level 3) | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commodity-based derivative contracts | $ | 1,226 | $ | 611 | $ | 1,837 | $ | 5,325 | $ | 2,385 | $ | 7,710 | ||||||||||||
Basis protection derivative contracts | 104 | 2 | 106 | 463 | — | 463 | ||||||||||||||||||
Total assets | 1,330 | 613 | 1,943 | 5,788 | 2,385 | 8,173 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Commodity-based derivative contracts | 66,652 | 7,393 | 74,045 | 17,537 | 988 | 18,525 | ||||||||||||||||||
Basis protection derivative contracts | 208 | — | 208 | 5 | — | 5 | ||||||||||||||||||
Total liabilities | 66,860 | 7,393 | 74,253 | 17,542 | 988 | 18,530 | ||||||||||||||||||
Net asset (liability) | $ | (65,530 | ) | $ | (6,780 | ) | $ | (72,310 | ) | $ | (11,754 | ) | $ | 1,397 | $ | (10,357 | ) | |||||||
Fair Value Assets and Liabilities Unobservable Input Reconciliation | ' | |||||||||||||||||||||||
The following table presents a reconciliation of our Level 3 assets measured at fair value: | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Fair value, net asset, beginning of period | $ | 105 | $ | 7,663 | $ | 1,397 | $ | 13,669 | ||||||||||||||||
Changes in fair value included in statement of operations line item: | ||||||||||||||||||||||||
Commodity price risk management gain (loss), net | (7,501 | ) | 2,834 | (8,896 | ) | 103 | ||||||||||||||||||
Sales from natural gas marketing | (4 | ) | 22 | (26 | ) | 6 | ||||||||||||||||||
Settlements included in statement of operations line items: | ||||||||||||||||||||||||
Commodity price risk management gain (loss), net | 621 | (2,246 | ) | 740 | (5,479 | ) | ||||||||||||||||||
Sales from natural gas marketing | (1 | ) | (3 | ) | 5 | (29 | ) | |||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | (4,366 | ) | — | (4,366 | ) | ||||||||||||||||||
Fair value, net asset end of period | $ | (6,780 | ) | $ | 3,904 | $ | (6,780 | ) | $ | 3,904 | ||||||||||||||
Net change in fair value of unsettled derivatives included in statement of operations line item: | ||||||||||||||||||||||||
Commodity price risk management loss, net | $ | (3,041 | ) | $ | (1,717 | ) | $ | (4,327 | ) | $ | (3,652 | ) | ||||||||||||
Sales from natural gas marketing | (2 | ) | 22 | (4 | ) | 10 | ||||||||||||||||||
Total | $ | (3,043 | ) | $ | (1,695 | ) | $ | (4,331 | ) | $ | (3,642 | ) | ||||||||||||
Concentration of Risk | ' | |||||||||||||||||||||||
The following table presents the counterparties that expose us to credit risk as of June 30, 2014 with regard to our derivative assets: | ||||||||||||||||||||||||
Counterparty Name | Fair Value of | |||||||||||||||||||||||
Derivative Assets | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Wells Fargo Bank, N.A. (1) | $ | 518 | ||||||||||||||||||||||
Bank of Montreal (1) | 432 | |||||||||||||||||||||||
JP Morgan Chase Bank, N.A (1) | 412 | |||||||||||||||||||||||
Bank of Nova Scotia (1) | 298 | |||||||||||||||||||||||
Other lenders in our revolving credit facility | 239 | |||||||||||||||||||||||
Various (2) | 44 | |||||||||||||||||||||||
Total | $ | 1,943 | ||||||||||||||||||||||
__________ | ||||||||||||||||||||||||
(1)Major lender in our revolving credit facility. See Note 7, Long-Term Debt. | ||||||||||||||||||||||||
(2)Represents a total of 31 counterparties. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ' | ||||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | ' | ||||||||||||||||
The following table presents the location and fair value amounts of our derivative instruments on the condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013: | |||||||||||||||||
Fair Value | |||||||||||||||||
Derivatives instruments: | Balance sheet line item | June 30, 2014 | 31-Dec-13 | ||||||||||||||
(in thousands) | |||||||||||||||||
Derivative assets: | Current | ||||||||||||||||
Commodity contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | $ | 519 | $ | 2,016 | ||||||||||||
Related to natural gas marketing | Fair value of derivatives | 264 | 361 | ||||||||||||||
Basis protection contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | — | 195 | ||||||||||||||
Related to natural gas marketing | Fair value of derivatives | 2 | — | ||||||||||||||
785 | 2,572 | ||||||||||||||||
Non-current | |||||||||||||||||
Commodity contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | 721 | 5,055 | ||||||||||||||
Related to natural gas marketing | Fair value of derivatives | 190 | 278 | ||||||||||||||
Basis protection contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | 247 | 268 | ||||||||||||||
1,158 | 5,601 | ||||||||||||||||
Total derivative assets | $ | 1,943 | $ | 8,173 | |||||||||||||
Derivative liabilities: | Current | ||||||||||||||||
Commodity contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | $ | 50,434 | $ | 15,263 | ||||||||||||
Related to natural gas marketing | Fair value of derivatives | 196 | 247 | ||||||||||||||
Basis protection contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | 207 | — | ||||||||||||||
Related to natural gas marketing | Fair value of derivatives | 1 | 5 | ||||||||||||||
50,838 | 15,515 | ||||||||||||||||
Non-current | |||||||||||||||||
Commodity contracts | |||||||||||||||||
Related to crude oil and natural gas sales | Fair value of derivatives | 23,255 | 2,782 | ||||||||||||||
Related to natural gas marketing | Fair value of derivatives | 160 | 233 | ||||||||||||||
23,415 | 3,015 | ||||||||||||||||
Total derivative liabilities | $ | 74,253 | $ | 18,530 | |||||||||||||
The following table presents the impact of our derivative instruments on our condensed consolidated statements of operations: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Condensed consolidated statement of operations line item | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | |||||||||||||||||
Commodity price risk management income (loss), net | |||||||||||||||||
Net settlements | $ | (10,429 | ) | $ | 3,903 | $ | (18,668 | ) | $ | 12,374 | |||||||
Net change in fair value of unsettled derivatives | (42,982 | ) | 20,821 | (61,898 | ) | (10,005 | ) | ||||||||||
Total commodity price risk management income (loss), net | $ | (53,411 | ) | $ | 24,724 | $ | (80,566 | ) | $ | 2,369 | |||||||
Sales from natural gas marketing | |||||||||||||||||
Net settlements | $ | (110 | ) | $ | (173 | ) | $ | (586 | ) | $ | 28 | ||||||
Net change in fair value of unsettled derivatives | 265 | 1,621 | (47 | ) | 651 | ||||||||||||
Total sales from natural gas marketing | $ | 155 | $ | 1,448 | $ | (633 | ) | $ | 679 | ||||||||
Cost of natural gas marketing | |||||||||||||||||
Net settlements | $ | 149 | $ | 225 | $ | 684 | $ | 63 | |||||||||
Net change in fair value of unsettled derivatives | (304 | ) | (1,636 | ) | (8 | ) | (559 | ) | |||||||||
Total cost of natural gas marketing | $ | (155 | ) | $ | (1,411 | ) | $ | 676 | $ | (496 | ) | ||||||
All of our financial derivative agreements contain master netting provisions that provide for the net settlement of all contracts through a single payment in the event of early termination. Our fixed-price physical purchase and sale agreements that qualify as derivative contracts are not subject to master netting provisions and are not significant. We have elected not to offset the fair value positions recorded on our condensed consolidated balance sheets. | |||||||||||||||||
The following table reflects the impact of netting agreements on gross derivative assets and liabilities as of June 30, 2014 and December 31, 2013: | |||||||||||||||||
As of June 30, 2014 | Derivatives instruments, recorded in condensed consolidated balance sheet, gross | Effect of master netting agreements | Derivative instruments, net | ||||||||||||||
(in thousands) | |||||||||||||||||
Asset derivatives: | |||||||||||||||||
Derivative instruments, at fair value | $ | 1,943 | $ | (1,165 | ) | $ | 778 | ||||||||||
Liability derivatives: | |||||||||||||||||
Derivative instruments, at fair value | $ | 74,253 | $ | (1,165 | ) | $ | 73,088 | ||||||||||
As of December 31, 2013 | Derivatives instruments, recorded in condensed consolidated balance sheet, gross | Effect of master netting agreements | Derivative instruments, net | ||||||||||||||
(in thousands) | |||||||||||||||||
Asset derivatives: | |||||||||||||||||
Derivative instruments, at fair value | $ | 8,173 | $ | (5,623 | ) | $ | 2,550 | ||||||||||
Liability derivatives: | |||||||||||||||||
Derivative instruments, at fair value | $ | 18,530 | $ | (5,623 | ) | $ | 12,907 | ||||||||||
Properties_and_Equipment_Table
Properties and Equipment (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Oil and Gas Property [Abstract] | ' | |||||||||||||||
Property, Plant and Equipment | ' | |||||||||||||||
The following table presents the components of properties and equipment, net of accumulated depreciation, depletion and amortization ("DD&A"): | ||||||||||||||||
June 30, 2014 | 31-Dec-13 | |||||||||||||||
(in thousands) | ||||||||||||||||
Properties and equipment, net: | ||||||||||||||||
Crude oil and natural gas properties | ||||||||||||||||
Proved | $ | 2,000,264 | $ | 1,784,466 | ||||||||||||
Unproved | 332,548 | 307,203 | ||||||||||||||
Total crude oil and natural gas properties | 2,332,812 | 2,091,669 | ||||||||||||||
Pipelines and related facilities | 21,765 | 21,781 | ||||||||||||||
Equipment and other | 30,272 | 29,246 | ||||||||||||||
Land and buildings | 13,620 | 13,617 | ||||||||||||||
Construction in progress | 83,422 | 53,810 | ||||||||||||||
Properties and equipment, at cost | 2,481,891 | 2,210,123 | ||||||||||||||
Accumulated DD&A | (653,170 | ) | (553,893 | ) | ||||||||||||
Properties and equipment, net | $ | 1,828,721 | $ | 1,656,230 | ||||||||||||
Impairment of natural gas and crude oil properties [Table Text Block] | ' | |||||||||||||||
The following table presents impairment charges recorded for crude oil and natural gas properties: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Continuing operations: | ||||||||||||||||
Impairment of proved properties | $ | — | $ | — | $ | — | $ | 45,000 | ||||||||
Impairment of individually significant unproved properties | — | 671 | — | 825 | ||||||||||||
Amortization of individually insignificant unproved properties | 938 | 831 | 1,917 | 2,136 | ||||||||||||
Total continuing operations | 938 | 1,502 | 1,917 | 47,961 | ||||||||||||
Discontinued operations: | ||||||||||||||||
Amortization of individually insignificant unproved properties | — | — | — | 3 | ||||||||||||
Total discontinued operations | — | — | — | 3 | ||||||||||||
Total impairment of crude oil and natural gas properties | $ | 938 | $ | 1,502 | $ | 1,917 | $ | 47,964 | ||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long-term Debt Instruments | ' | |||||||
Long-term debt consists of the following: | ||||||||
June 30, 2014 | 31-Dec-13 | |||||||
(in thousands) | ||||||||
Senior notes: | ||||||||
3.25% Convertible senior notes due 2016: | ||||||||
Principal amount | $ | 115,000 | $ | 115,000 | ||||
Unamortized discount | (8,079 | ) | (10,010 | ) | ||||
3.25% Convertible senior notes due 2016, net of discount | 106,921 | 104,990 | ||||||
7.75% Senior notes due 2022 | 500,000 | 500,000 | ||||||
Total senior notes | 606,921 | 604,990 | ||||||
Credit facilities: | ||||||||
Corporate | — | — | ||||||
PDCM | 47,000 | 37,000 | ||||||
Total credit facilities | 47,000 | 37,000 | ||||||
PDCM second lien term loan | 15,000 | 15,000 | ||||||
Total debt | 668,921 | 656,990 | ||||||
Less: Current portion of long-term debt | 106,921 | — | ||||||
Long-term debt | $ | 562,000 | $ | 656,990 | ||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ' | |||
Schedule of Change in Asset Retirement Obligation | ' | |||
The following table presents the changes in carrying amounts of the asset retirement obligations associated with our working interest in crude oil and natural gas properties: | ||||
Amount | ||||
(in thousands) | ||||
Balance at beginning of period, January 1 | $ | 41,030 | ||
Obligations incurred with development activities | 341 | |||
Accretion expense | 1,716 | |||
Revisions in estimated cash flows | (134 | ) | ||
Obligations discharged with divestitures of properties and asset retirements | (2,884 | ) | ||
Balance end of period, June 30 | 40,069 | |||
Less: Current portion | (1,158 | ) | ||
Long-term portion | $ | 38,911 | ||
Commitments_and_Contingencies_
Commitments and Contingencies Commitments and Contigencies (Tables) | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Supply Commitment | ' | ||||||||||||||||||||||||||
The following table presents gross volume information, including our proportionate share of PDCM, related to our long-term firm transportation, sales and processing agreements for pipeline capacity as of June 30, 2014: | |||||||||||||||||||||||||||
For the Twelve Months Ending June 30, | |||||||||||||||||||||||||||
Area | 2015 | 2016 | 2017 | 2018 | 2019 and | Total | Expiration | ||||||||||||||||||||
Through | Date | ||||||||||||||||||||||||||
Expiration | |||||||||||||||||||||||||||
Natural gas (MMcf) | |||||||||||||||||||||||||||
Appalachian Basin | 19,033 | 19,862 | 20,987 | 20,987 | 114,928 | 195,797 | January 31, 2026 | ||||||||||||||||||||
Utica Shale | 2,737 | 2,745 | 2,737 | 2,737 | 13,929 | 24,885 | July 22, 2023 | ||||||||||||||||||||
Total | 21,770 | 22,607 | 23,724 | 23,724 | 128,857 | 220,682 | |||||||||||||||||||||
Dollar commitment (in thousands) | $ | 7,356 | $ | 7,530 | $ | 7,746 | $ | 7,092 | $ | 35,075 | $ | 64,799 | |||||||||||||||
Common_Stock_Tables
Common Stock (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | |||||||||||||||||||||||
The following table provides a summary of the impact of our outstanding stock-based compensation plans on the results of operations for the periods presented: | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Stock-based compensation expense | $ | 5,032 | $ | 4,349 | $ | 8,879 | $ | 6,951 | ||||||||||||||||
Income tax benefit | (1,912 | ) | (1,661 | ) | (3,374 | ) | (2,655 | ) | ||||||||||||||||
Net stock-based compensation expense | $ | 3,120 | $ | 2,688 | $ | 5,505 | $ | 4,296 | ||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | |||||||||||||||||||||||
In January 2014, the Compensation Committee awarded 88,248 SARs to our executive officers. The fair value of each SAR award was estimated on the date of grant using a Black-Scholes pricing model using the following assumptions: | ||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Expected term of award | 6 years | 6 years | ||||||||||||||||||||||
Risk-free interest rate | 2.1 | % | 1 | % | ||||||||||||||||||||
Expected volatility | 65.6 | % | 65.5 | % | ||||||||||||||||||||
Weighted-average grant date fair value per share | $ | 29.96 | $ | 21.96 | ||||||||||||||||||||
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | ' | |||||||||||||||||||||||
The following table presents the changes in our SARs: | ||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Number of | Weighted-Average | Average Remaining Contractual | Aggregate Intrinsic | Number of | Weighted-Average | Average Remaining Contractual | Aggregate Intrinsic | |||||||||||||||||
SARs | Exercise | Term (in years) | Value (in thousands) | SARs | Exercise | Term (in years) | Value (in thousands) | |||||||||||||||||
Price | Price | |||||||||||||||||||||||
Outstanding beginning of year, January 1, | 190,763 | $ | 33.77 | 118,832 | $ | 30.8 | ||||||||||||||||||
Awarded | 88,248 | 49.57 | 87,078 | 37.18 | ||||||||||||||||||||
Outstanding at June 30, | 279,011 | 38.77 | 8.3 | 6,803 | 205,910 | 33.5 | 8.6 | 3,703 | ||||||||||||||||
Vested and expected to vest at June 30, | 268,453 | 38.53 | 8.3 | 6,609 | 196,421 | 33.4 | 8.6 | 3,552 | ||||||||||||||||
Exercisable at June 30, | 109,920 | 32.71 | 7.3 | 3,346 | 67,069 | 29.99 | 7.6 | 1,441 | ||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | |||||||||||||||||||||||
The following table presents the changes in non-vested time-based awards to all employees, including executive officers, for the six months ended June 30, 2014: | ||||||||||||||||||||||||
Shares | Weighted-Average | |||||||||||||||||||||||
Grant-Date | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
Non-vested at December 31, 2013 | 651,781 | $ | 36.36 | |||||||||||||||||||||
Granted | 280,835 | 56.56 | ||||||||||||||||||||||
Vested | (202,587 | ) | 36.73 | |||||||||||||||||||||
Forfeited | (18,385 | ) | 38.56 | |||||||||||||||||||||
Non-vested at June 30, 2014 | 711,644 | 44.18 | ||||||||||||||||||||||
As of/Year Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||
Total intrinsic value of time-based awards vested | $ | 11,690 | $ | 8,544 | ||||||||||||||||||||
Total intrinsic value of time-based awards non-vested | 44,940 | 37,082 | ||||||||||||||||||||||
Market price per common share as of June 30, | 63.15 | 51.48 | ||||||||||||||||||||||
Weighted-average grant date fair value per share | 56.56 | 44.24 | ||||||||||||||||||||||
Restricted Stock Awards, Market-Based, Valuation assumptions | ' | |||||||||||||||||||||||
In January 2014, the Compensation Committee awarded a total of 42,151 market-based restricted shares to our executive officers. In addition to continuous employment, the vesting of these shares is contingent on the Company's total shareholder return ("TSR"), which is essentially the Company’s stock price change including any dividends, as compared to the TSR of a set group of 15 peer companies. The shares are measured over a three-year period ending on December 31, 2016 and can result in a payout between 0% and 200% of the total shares awarded. The weighted-average grant date fair value per market-based share for these awards granted was computed using the Monte Carlo pricing model using the following assumptions: | ||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Expected term of award | 3 years | 3 years | ||||||||||||||||||||||
Risk-free interest rate | 0.8 | % | 0.4 | % | ||||||||||||||||||||
Expected volatility | 55.2 | % | 56.6 | % | ||||||||||||||||||||
Weighted-average grant date fair value per share | $ | 56.87 | $ | 49.04 | ||||||||||||||||||||
Schedule of Nonvested Performance-based Units Activity | ' | |||||||||||||||||||||||
The following table presents the change in non-vested market-based awards during six months ended June 30, 2014: | ||||||||||||||||||||||||
Shares | Weighted-Average | |||||||||||||||||||||||
Grant-Date | ||||||||||||||||||||||||
Fair Value per Share | ||||||||||||||||||||||||
Non-vested at December 31, 2013 | 72,111 | $ | 43.75 | |||||||||||||||||||||
Granted | 42,151 | 56.87 | ||||||||||||||||||||||
Non-vested at June 30, 2014 | 114,262 | 48.59 | ||||||||||||||||||||||
As of/Year Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||
Total intrinsic value of market-based awards non-vested | $ | 7,216 | $ | 4,235 | ||||||||||||||||||||
Market price per common share as of June 30, | 63.15 | 51.48 | ||||||||||||||||||||||
Weighted-average grant date fair value per share | 56.87 | 49.04 | ||||||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of Earnings Per Share Reconciliation | ' | |||||||||||
The following table presents a reconciliation of the weighted-average diluted shares outstanding: | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(in thousands) | ||||||||||||
Weighted-average common shares outstanding - basic | 35,762 | 30,332 | 35,726 | 30,301 | ||||||||
Dilutive effect of: | ||||||||||||
Restricted stock | — | 313 | — | — | ||||||||
SARs | — | 26 | — | — | ||||||||
Stock options | — | 1 | — | — | ||||||||
Non-employee director deferred compensation | — | 4 | — | — | ||||||||
Convertible notes | — | 338 | — | — | ||||||||
Weighted-average common shares and equivalents outstanding - diluted | 35,762 | 31,014 | 35,726 | 30,301 | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | |||||||||||
The following table presents the weighted-average common share equivalents excluded from the calculation of diluted earnings per share due to their anti-dilutive effect: | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(in thousands) | ||||||||||||
Weighted-average common share equivalents excluded from diluted earnings | ||||||||||||
per share due to their anti-dilutive effect: | ||||||||||||
Restricted stock | 896 | 5 | 859 | 893 | ||||||||
SARs | 92 | 20 | 96 | 54 | ||||||||
Stock options | 4 | — | 4 | 7 | ||||||||
Non-employee director deferred compensation | 5 | — | 5 | 4 | ||||||||
Convertible notes | 881 | — | 758 | 206 | ||||||||
Total anti-dilutive common share equivalents | 1,878 | 25 | 1,722 | 1,164 | ||||||||
Assets_Held_for_Sale_Divestitu
Assets Held for Sale, Divestitures and Discontinued Operations (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Schedule of Discontinued Operations | ' | ||||||||
ontinued operations for the Piceance Basin and NECO divestitures: | |||||||||
Condensed consolidated statements of operations - discontinued operations | Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | |||||||
Revenues | |||||||||
Crude oil, natural gas and NGLs sales | $ | 10,182 | $ | 20,456 | |||||
Sales from natural gas marketing | 586 | 1,036 | |||||||
Well operations, pipeline income and other | 409 | 859 | |||||||
Total revenues | 11,177 | 22,351 | |||||||
Costs, expenses and other | |||||||||
Production costs | 2,564 | 7,957 | |||||||
Cost of natural gas marketing | 540 | 994 | |||||||
Depreciation, depletion and amortization | — | 2,258 | |||||||
Other | 1,959 | 2,454 | |||||||
Loss on sale of properties and equipment | 1,076 | 1,076 | |||||||
Total costs, expenses and other | 6,139 | 14,739 | |||||||
Income from discontinued operations | 5,038 | 7,612 | |||||||
Provision for income taxes | (1,622 | ) | (2,659 | ) | |||||
Income from discontinued operations, net of tax | $ | 3,416 | $ | 4,953 | |||||
Transactions_with_Affiliates_a1
Transactions with Affiliates and Other Related Parties (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Schedule of Related Party Transactions | ' | ||||||||||||||||
Amounts billed to PDCM for these services were $2.1 million and $4.4 million in the three and six months ended June 30, 2014, respectively, compared to $3.4 million and $6.8 million in the three and six months ended June 30, 2013, respectively. Our statements of operations include only our proportionate share of these billings. The following table presents the statement of operations line item in which our proportionate share is recorded and the amount for each of the periods presented: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Condensed consolidated statement of operations line item | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | |||||||||||||||||
Production costs | $ | 417 | $ | 986 | $ | 1,022 | $ | 2,053 | |||||||||
Exploration expense | — | 134 | — | 239 | |||||||||||||
General and administrative expense | 625 | 618 | 1,181 | 1,132 | |||||||||||||
Business_Segments_Tables
Business Segments (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule of Segment Reporting Information | ' | |||||||||||||||
The following tables present our segment information: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Segment revenues: | ||||||||||||||||
Oil and gas exploration and production | $ | 87,057 | $ | 103,226 | $ | 190,382 | $ | 161,382 | ||||||||
Gas marketing | 22,415 | 18,079 | 49,352 | 31,749 | ||||||||||||
Total revenues | $ | 109,472 | $ | 121,305 | $ | 239,734 | $ | 193,131 | ||||||||
Segment income (loss) before income taxes: | ||||||||||||||||
Oil and gas exploration and production | $ | 6,265 | $ | 56,372 | $ | 40,271 | $ | 22,671 | ||||||||
Gas marketing | (13 | ) | 13 | 54 | (52 | ) | ||||||||||
Unallocated | (54,985 | ) | (30,092 | ) | (92,572 | ) | (59,773 | ) | ||||||||
Income (loss) before income taxes | $ | (48,733 | ) | $ | 26,293 | $ | (52,247 | ) | $ | (37,154 | ) | |||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Segment assets: | ||||||||||||||||
Oil and gas exploration and production | $ | 1,977,181 | $ | 1,937,251 | ||||||||||||
Gas marketing | 23,669 | 20,342 | ||||||||||||||
Unallocated | 85,575 | 67,610 | ||||||||||||||
Total assets | $ | 2,086,425 | $ | 2,025,203 | ||||||||||||
Recovered_Sheet1
Nature of Operations and Basis of Presentation Additional Information (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Oil and gas producing wells, gross | 2,900 |
Number of Operating Segments | 2 |
Fair_Value_Measurements_and_Di2
Fair Value Measurements and Disclosures (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value | Significant Other Observable Inputs (Level 2) | ' | ' |
Assets and Liabilities at Fair Value | ' | ' |
Commodity-based derivative - assets | $1,226,000 | $5,325,000 |
Basis protection derivative - assets | 104,000 | 463,000 |
Total assets | 1,330,000 | 5,788,000 |
Commodity-based derivative - liabilities | 66,652,000 | 17,537,000 |
Basis protection derivative - liabilities | 208,000 | 5,000 |
Total liabilities | 66,860,000 | 17,542,000 |
Net asset (fair value) | -65,530,000 | -11,754,000 |
Fair Value | Significant Unobservable Inputs (Level 3) | ' | ' |
Assets and Liabilities at Fair Value | ' | ' |
Commodity-based derivative - assets | 611,000 | 2,385,000 |
Basis protection derivative - assets | 2,000 | 0 |
Total assets | 613,000 | 2,385,000 |
Commodity-based derivative - liabilities | 7,393,000 | 988,000 |
Basis protection derivative - liabilities | 0 | 0 |
Total liabilities | 7,393,000 | 988,000 |
Net asset (fair value) | -6,780,000 | 1,397,000 |
Fair Value | Total | ' | ' |
Assets and Liabilities at Fair Value | ' | ' |
Commodity-based derivative - assets | 1,837,000 | 7,710,000 |
Basis protection derivative - assets | 106,000 | 463,000 |
Total assets | 1,943,000 | 8,173,000 |
Commodity-based derivative - liabilities | 74,045,000 | 18,525,000 |
Basis protection derivative - liabilities | 208,000 | 5,000 |
Total liabilities | 74,253,000 | 18,530,000 |
Net asset (fair value) | -72,310,000 | -10,357,000 |
3.25% Convertible Senior Notes due 2016 | ' | ' |
Assets and Liabilities at Fair Value | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ' |
3.25% convertible senior notes fair value | 183,200,000 | ' |
3.25% convertible senior notes fair value as a percentage of par | 159.30% | ' |
7.75% Senior Notes due 2022 | ' | ' |
Assets and Liabilities at Fair Value | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | ' |
7.75% senior notes fair value | $557,500,000 | ' |
7.75% senior notes fair value as percentage of par | 111.50% | ' |
Reconciliation_of_Level_3_Fair
Reconciliation of Level 3 Fair Value Measurements (Details) (Derivative Financial Instrument Net Assets, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Roll-forward of Level 3 Assets | ' | ' | ' | ' |
Fair Value, net assets, beginning of period | $105 | $7,663 | $1,397 | $13,669 |
Fair Value, net assets, end of period | -6,780 | 3,904 | -6,780 | 3,904 |
Net change in fair value of unsettled derivatives included in statement of operations line item | -3,043 | -1,695 | -4,331 | -3,642 |
Commodity Price Risk Management (loss), net | ' | ' | ' | ' |
Roll-forward of Level 3 Assets | ' | ' | ' | ' |
Changes in fair value included in statement of operations line item: | -7,501 | 2,834 | -8,896 | 103 |
Settlements included in statement of operations line items: | 621 | -2,246 | 740 | -5,479 |
Net change in fair value of unsettled derivatives included in statement of operations line item | -3,041 | -1,717 | -4,327 | -3,652 |
Sales From Natural Gas Marketing | ' | ' | ' | ' |
Roll-forward of Level 3 Assets | ' | ' | ' | ' |
Changes in fair value included in statement of operations line item: | -4 | 22 | -26 | 6 |
Settlements included in statement of operations line items: | -1 | -3 | 5 | -29 |
Net change in fair value of unsettled derivatives included in statement of operations line item | -2 | 22 | -4 | 10 |
Income (loss) from Discontinued Operations, Net of Tax | ' | ' | ' | ' |
Roll-forward of Level 3 Assets | ' | ' | ' | ' |
Settlements included in statement of operations line items: | $0 | ($4,366) | $0 | ($4,366) |
Fair_Value_Measurements_and_Di3
Fair Value Measurements and Disclosures Concentration of Risk (Details) (USD $) | Jun. 30, 2014 | |
Concentration Risk [Line Items] | ' | |
Fair Value of Derivative Assets | $1,943,000 | |
Number of derivative counterparties not lenders in our revolving credit facility | 31 | |
Wells Fargo Bank [Member] | ' | |
Concentration Risk [Line Items] | ' | |
Fair Value of Derivative Assets | 518,000 | [1] |
Bank of Montreal [Member] | ' | |
Concentration Risk [Line Items] | ' | |
Fair Value of Derivative Assets | 432,000 | [1] |
JPMorgan Chase Bank [Member] | ' | |
Concentration Risk [Line Items] | ' | |
Fair Value of Derivative Assets | 412,000 | [1] |
Bank of Nova Scotia [Member] | ' | |
Concentration Risk [Line Items] | ' | |
Fair Value of Derivative Assets | 298,000 | [1] |
Other Lenders in Our Credit Facility [Member] | ' | |
Concentration Risk [Line Items] | ' | |
Fair Value of Derivative Assets | 239,000 | |
Various [Member] | ' | |
Concentration Risk [Line Items] | ' | |
Fair Value of Derivative Assets | $44,000 | [2] |
[1] | Major lender in our revolving credit facility. See Note 7, Long-Term Debt. | |
[2] | Represents a total of 31 counterparties. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments Additional Information (Details) | Jun. 30, 2014 |
MBbls | |
MMBTU | |
Derivatives in Place for Anticipated Production | ' |
Anticipated natural gas production hedged (MMBtu) | 53,234,000 |
Anticipated crude oil production hedged (MBbls) | 10,238 |
Fair_Value_of_Derivative_and_B
Fair Value of Derivative and Balance Sheet Location (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value | ' | ' |
Derivative Asset, Fair Value, Gross Asset | $1,943 | $8,173 |
Derivative Liability, Fair Value, Gross Liability | 74,253 | 18,530 |
Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 785 | 2,572 |
Non Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 1,158 | 5,601 |
Current Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 50,838 | 15,515 |
Non Current Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 23,415 | 3,015 |
Commodity Contracts Related to Natural Gas and Crude Oil Sales | Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | 519 | 2,016 |
Commodity Contracts Related to Natural Gas and Crude Oil Sales | Non Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | 721 | 5,055 |
Commodity Contracts Related to Natural Gas and Crude Oil Sales | Current Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | 50,434 | 15,263 |
Commodity Contracts Related to Natural Gas and Crude Oil Sales | Non Current Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | 23,255 | 2,782 |
Commodity Contracts Related to Natural Gas Marketing | Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | 264 | 361 |
Commodity Contracts Related to Natural Gas Marketing | Non Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | 190 | 278 |
Commodity Contracts Related to Natural Gas Marketing | Current Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | 196 | 247 |
Commodity Contracts Related to Natural Gas Marketing | Non Current Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | 160 | 233 |
Basis Protection Contracts Related to Natural Gas and Crude Oil Sales | Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | 0 | 195 |
Basis Protection Contracts Related to Natural Gas and Crude Oil Sales | Non Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | 247 | 268 |
Basis Protection Contracts Related to Natural Gas and Crude Oil Sales | Current Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | 207 | 0 |
Basis Protection Contracts Related to Natural Gas Marketing [Member] | Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | 2 | 0 |
Basis Protection Contracts Related to Natural Gas Marketing [Member] | Current Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair Value of Derivatives | $1 | $5 |
Impact_of_Derivative_Instrumen
Impact of Derivative Instruments on Statement of Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Commodity Price Risk Management (loss), net | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Net settlements | ($10,429) | $3,903 | ($18,668) | $12,374 |
Net change in fair value of unsettled derivatives | -42,982 | 20,821 | -61,898 | -10,005 |
Total commodity price risk management gain (loss), net | -53,411 | 24,724 | -80,566 | 2,369 |
Sales From Natural Gas Marketing | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Net settlements | -110 | -173 | -586 | 28 |
Net change in fair value of unsettled derivatives | 265 | 1,621 | -47 | 651 |
Total commodity price risk management gain (loss), net | 155 | 1,448 | -633 | 679 |
Cost of Natural Gas Marketing | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Net settlements | 149 | 225 | 684 | 63 |
Net change in fair value of unsettled derivatives | -304 | -1,636 | -8 | -559 |
Total commodity price risk management gain (loss), net | ($155) | ($1,411) | $676 | ($496) |
Derivative_Financial_Instrumen3
Derivative Financial Instruments Impact of Netting Agreements (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Asset: | ' | ' |
Derivative assets, gross | $1,943 | $8,173 |
Effect of master netting agreements | -1,165 | -5,623 |
Derivative asset, net | 778 | 2,550 |
Derivative Liability: | ' | ' |
Derivative liability, gross | 74,253 | 18,530 |
Effect of master netting agreements | -1,165 | -5,623 |
Derivative liability, net | $73,088 | $12,907 |
Properties_and_Equipment_Detai
Properties and Equipment (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment | ' | ' |
Proved Natural Gas and Crude Oil Properties | $2,000,264 | $1,784,466 |
Unproved Natural Gas and Crude Oil Properties | 332,548 | 307,203 |
Total Natural Gas and Crude Oil Properties | 2,332,812 | 2,091,669 |
Pipelines and Related Facilities | 21,765 | 21,781 |
Equipment and other | 30,272 | 29,246 |
Land and Buildings | 13,620 | 13,617 |
Construction in Progress | 83,422 | 53,810 |
Properties and equipment, at cost | 2,481,891 | 2,210,123 |
Accumulated DD&A | -653,170 | -553,893 |
Property, Plant and Equipment, Net | $1,828,721 | $1,656,230 |
Impairment_of_Natural_Gas_and_
Impairment of Natural Gas and Crude Oil Properties (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Continuing Operations: | ' | ' | ' | ' |
Impairment of proved properties | $0 | $0 | $0 | $45,000 |
Impairment of individually significantly unproved properties | 0 | 671 | 0 | 825 |
Amortization of Individually Insignificant Unproved Properties | 938 | 831 | 1,917 | 2,136 |
Total continuing operations | 938 | 1,502 | 1,917 | 47,961 |
Discontinued operations: | ' | ' | ' | ' |
Amortization of Individually Insignificant Unproved Properties, discontinued operations | 0 | 0 | 0 | 3 |
Total discontinued operations | 0 | 0 | 0 | 3 |
Total impairment of crude oil and natural gas properties | 938 | 1,502 | 1,917 | 47,964 |
Shallow Upper Devonian properties [Member] | ' | ' | ' | ' |
Continuing Operations: | ' | ' | ' | ' |
Impairment of proved properties | ' | ' | ' | $45,000 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective Income Tax Rate, Continuing Operations | 42.20% | 37.20% | 42.00% | 34.20% |
Schedule_of_LongTerm_Debt_Deta
Schedule of Long-Term Debt (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ' | ' |
Total senior notes | $606,921 | $604,990 |
Total credit facilities | 47,000 | 37,000 |
PDCM second lien term loan | 15,000 | 15,000 |
Total Debt | 668,921 | 656,990 |
Current portion of long-term debt | 106,921 | 0 |
Long-term debt | 562,000 | 656,990 |
3.25% Convertible Senior Notes due 2016 | ' | ' |
Debt Instrument | ' | ' |
Principal amount | 115,000 | 115,000 |
Debt Instrument, Unamortized Discount | 8,079 | 10,010 |
3.25% Convertible senior notes due 2016, net of discount | 106,921 | 104,990 |
7.75% Senior Notes due 2022 | ' | ' |
Debt Instrument | ' | ' |
Senior Notes | 500,000 | 500,000 |
Revolving Credit Facility | ' | ' |
Debt Instrument | ' | ' |
Corporate Line of Credit Outstanding | 0 | 0 |
PDCM Credit Facility | ' | ' |
Debt Instrument | ' | ' |
PDCM Line of Credit Outstanding | $47,000 | $37,000 |
LongTerm_Debt_Additional_Infor
Long-Term Debt Additional Information (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | 15-May-16 | Nov. 15, 2010 | Jun. 30, 2014 | Jun. 30, 2014 | Oct. 15, 2022 | Oct. 03, 2012 | Jun. 30, 2014 | 21-May-18 | Nov. 05, 2010 | Jun. 30, 2014 | Apr. 30, 2017 | Apr. 30, 2010 | Jun. 30, 2014 | Dec. 31, 2013 | Oct. 31, 2017 | Jul. 02, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
3.25% Convertible Senior Notes due 2016 | 3.25% Convertible Senior Notes due 2016 | 3.25% Convertible Senior Notes due 2016 | 3.25% Convertible Senior Notes due 2016 | 7.75% Senior Notes due 2022 | 7.75% Senior Notes due 2022 | 7.75% Senior Notes due 2022 | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | PDCM Credit Facility | PDCM Credit Facility | PDCM Credit Facility | PDCM Credit Facility | PDCM Second Lien Term Loan | PDCM Second Lien Term Loan | PDCM Second Lien Term Loan | PDCM Second Lien Term Loan | RNG Credit Facility [Member] | First Payment | First Payment | Second Payment | Second Payment | Alternate Base Rate | LIBOR | |||
Rate | Rate | Rate | Rate | Rate | Rate | Rate | 3.25% Convertible Senior Notes due 2016 | 7.75% Senior Notes due 2022 | 3.25% Convertible Senior Notes due 2016 | 7.75% Senior Notes due 2022 | PDCM Second Lien Term Loan | PDCM Second Lien Term Loan | |||||||||||||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | 3.25% | 3.25% | ' | ' | 7.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Issuance Date | ' | ' | ' | 15-Nov-10 | ' | ' | ' | 3-Oct-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2-Jul-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Maturity Date | ' | ' | 15-May-16 | ' | ' | ' | 15-Oct-22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Oct-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Frequency of Periodic Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'May 15 | 'April 15 | 'November 15 | 'October 15 | ' | ' |
3.25% Convertible Debt, Liability Component ($) | ' | ' | ' | $94,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective Interest Rate on Convertible Debt | ' | ' | ' | ' | ' | 7.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Terms of Conversion Feature | ' | ' | ' | ' | ' | 'Upon conversion, the Convertible Notes may be settled, at our election, in shares of our common stock, cash or a combination of cash and shares of our common stock. We have initially elected a net-settlement method to satisfy our conversion obligation, which allows us to settle the principal amount of the Convertible Notes in cash and to settle the excess conversion value in shares, as well as cash in lieu of fractional shares. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Note Stock Price Trigger | ' | ' | ' | ' | ' | $55.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Note Threshold Percentage of Stock Price Trigger | ' | ' | ' | ' | ' | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PDC Energy Stock Price | ' | ' | ' | ' | $63.15 | $63.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Note, If-converted Value in Excess of Principal | ' | ' | ' | ' | 56,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Initiation Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5-Nov-10 | ' | ' | 30-Apr-10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity ($) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | 400,000,000 | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Current Borrowing Capacity ($) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 450,000,000 | ' | ' | 105,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Expiration Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21-May-18 | ' | ' | 30-Apr-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Covenant Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The revolving credit facility contains covenants customary for agreements of this type, with the most restrictive being certain financial tests on a quarterly basis. The financial tests, as defined per the revolving credit facility, include requirements to: (a) maintain a minimum current ratio of 1.00 to 1.00 and (b) not exceed a maximum leverage ratio of 4.25 to 1.00. | ' | ' | 'The credit facility contains covenants customary for agreements of this type, with the most restrictive being certain financial tests that must be met on a quarterly basis. The financial tests, as defined by the credit facility, include requirements to maintain a minimum current ratio of 1.0 to 1.0, not to exceed a debt to EBITDAX ratio of 4.25 to 1.0 (declining to 4.0 to 1.0 on July 1, 2014) and to maintain a minimum interest coverage ratio of 2.5 to 1.0 | ' | ' | ' | 'The Term Loan Agreement contains financial covenants, as defined in the agreement, that must be met on a quarterly basis, including requirements to maintain a minimum current ratio of 1.0 to 1.0, not to exceed a debt to EBITDAX ratio of 4.5 to 1.0, a minimum interest coverage ratio of 2.25 to 1.0 and a present value of future net revenues to total debt ratio of 1.50 to 1.00. | ' | ' | ' | ' | ' | ' | ' | ' |
PDC Irrevocable Standby Letter of Credit ($) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,700,000 | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 438,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.80% | 3.70% | ' | ' | 8.50% | 8.50% | ' | ' | ' | ' | ' | ' | ' |
Proportionate Share of PDCM Credit Facility ($) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PDCM second lien term loan | $15,000,000 | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Margin on Variable Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | 6.00% |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Asset Retirement Obligation, Roll Forward Analysis | ' | ' | ' |
Balance at December 31, 2013 | $41,030 | ' | ' |
Obligations incurred with development activities | 341 | ' | ' |
Accretion expense | 1,716 | 2,481 | ' |
Revision in estimated cash flows | -134 | ' | ' |
Obligations discharged with divestitures of properties and asset retirements | -2,884 | ' | ' |
Balance at June 30, 2014 | 40,069 | ' | ' |
Less current portion | 1,158 | ' | ' |
Long-term portion | $38,911 | ' | $39,872 |
Commitments_and_Contingencies_1
Commitments and Contingencies Commitments and Contigencies (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 29, 2014 |
In Thousands, unless otherwise specified | MMcf | Appalachiain Basin | Utica Shale | First Year Commitment [Member] | First Year Commitment [Member] | First Year Commitment [Member] | Second Year Commitment [Member] | Second Year Commitment [Member] | Second Year Commitment [Member] | Third Year Commitment [Member] | Third Year Commitment [Member] | Third Year Commitment [Member] | Fourth Year Commitment [Member] | Fourth Year Commitment [Member] | Fourth Year Commitment [Member] | commitments 5 years and beyond [Member] | commitments 5 years and beyond [Member] | commitments 5 years and beyond [Member] | Supply Contract Expiration Date [Member] | Supply Contract Expiration Date [Member] | PDCM Divestiture |
MMcf | MMcf | MMcf | Appalachiain Basin | Utica Shale | MMcf | Appalachiain Basin | Utica Shale | MMcf | Appalachiain Basin | Utica Shale | MMcf | Appalachiain Basin | Utica Shale | MMcf | Appalachiain Basin | Utica Shale | Appalachiain Basin | Utica Shale | MMcf | ||
MMcf | MMcf | MMcf | MMcf | MMcf | MMcf | MMcf | MMcf | MMcf | MMcf | ||||||||||||
Supply Commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Oil and Gas Delivery Commitments Volumes (MMcf) | 220,682 | 195,797 | 24,885 | 21,770 | 19,033 | 2,737 | 22,607 | 19,862 | 2,745 | 23,724 | 20,987 | 2,737 | 23,724 | 20,987 | 2,737 | 128,857 | 114,928 | 13,929 | ' | ' | 137,865 |
Dollar Commitment ($ in thousands) | $64,799 | ' | ' | $7,356 | ' | ' | $7,530 | ' | ' | $7,746 | ' | ' | $7,092 | ' | ' | $35,075 | ' | ' | ' | ' | $31,100 |
Supply Commitments Contract Expiration Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Jan-26 | 22-Jul-23 | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies Additional information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Legal Settlement Charge | $20.80 | ' |
Estimated Legal Settlement | 24.1 | ' |
High range of estimated potential legal settlement | 175 | ' |
Accrued Environmental Liabilities | $6.20 | $5.40 |
Stocked_Based_Compensation_Sum
Stocked Based Compensation Summary (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' | ' |
Stock-based compensation expense | $5,032 | $4,349 | $8,879 | $6,951 |
Income tax benefit | -1,912 | -1,661 | -3,374 | -2,655 |
Net stock-based compensation expense | $3,120 | $2,688 | $5,505 | $4,296 |
SARs_Fair_Value_Assumptions_De
SARs Fair Value Assumptions (Details) (Stock Appreciation Rights (SARs), USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Rate | Rate | |
Stock Appreciation Rights (SARs) | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
Expected term of award | '6 years | '6 years |
Risk-free interest rate | 2.10% | 1.00% |
Expected Volatility | 65.60% | 65.50% |
Granted | $29.96 | $21.96 |
Schedule_of_Changes_in_SARs_De
Schedule of Changes in SARs (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 'The SARs vest ratably over a three-year period and may be exercised at any point after vesting through 10 years from the date of issuance. Pursuant to the terms of the awards, upon exercise, the executive officers will receive, in shares of common stock, the excess of the market price of the award on the date of exercise over the market price of the award on the date of issuance. | ' |
Stock Appreciation Rights (SARs) | ' | ' |
Number of SARs | ' | ' |
Outstanding beginning of year, January 1, | 190,763 | 118,832 |
Awarded | 88,248 | 87,078 |
Outstanding at June 30, | 279,011 | 205,910 |
Vested and expected to vest at June 30, | 268,453 | 196,421 |
Exercisable at June 30, | 109,920 | 67,069 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | ' | ' |
Outstanding beginning of year, January 1, | $33.77 | $30.80 |
Awarded | $49.57 | $37.18 |
Outstanding at June 30, | $38.77 | $33.50 |
Vested and expected to vest at June 30, | $38.53 | $33.40 |
Exercisable at June 30, | $32.71 | $29.99 |
Weighted-Average Remaining Contractual Term (in years) | ' | ' |
Outstanding beginning of year, January 1, | '8 years 3 months 23 days | '8 years 7 months 0 days |
Outstanding at June 30, | '8 years 3 months 23 days | '8 years 7 months 0 days |
Vested and expected to vest at June 30, | '8 years 3 months 8 days | '8 years 7 months 0 days |
Exercisable at June 30, | '7 years 4 months 0 days | '7 years 7 months 0 days |
Share based compesation aggregate intrinsic value | ' | ' |
Outstanding beginning of year, January 1, | $6,803,000 | $3,703,000 |
Outstanding at June 30, | 6,803,000 | 3,703,000 |
Vested and expected to vest at June 30, | 6,609,000 | 3,552,000 |
Exercisable at June 30, | 3,346,000 | 1,441,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $3,500,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | '2 years 0 months 0 days | ' |
Schedule_of_Changes_in_Restric
Schedule of Changes in Restricted Stock - TIme Based Awards (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 'The SARs vest ratably over a three-year period and may be exercised at any point after vesting through 10 years from the date of issuance. Pursuant to the terms of the awards, upon exercise, the executive officers will receive, in shares of common stock, the excess of the market price of the award on the date of exercise over the market price of the award on the date of issuance. | ' |
Restricted stock | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 'The fair value of the time-based restricted shares is amortized ratably over the requisite service period, primarily three years. The time-based shares vest ratably on each annual anniversary following the grant date if the participant is continuously employed. | ' |
Time based shares granted to executives | 104,467 | ' |
Number of Shares | ' | ' |
Outstanding beginning of year, January 1, | 651,781 | ' |
Granted | 280,835 | ' |
Vested | -202,587 | ' |
Forfeited | -18,385 | ' |
Outstanding at June 30, | 711,644 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' |
Outstanding at beginning of year, January 1, | $36.36 | ' |
Granted | $56.56 | $44.24 |
Vested | $36.73 | ' |
Forfeited | $38.56 | ' |
Outstanding at June 30, | $44.18 | ' |
Total intrinsic value of time based awards vested | $11,690,000 | $8,544,000 |
Total intrinsic value of time-based awards non-vested | 44,940,000 | 37,082,000 |
Market price per common share as of June 30, | $63.15 | $51.48 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $24,000,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | '2 years 2 months 30 days | ' |
Restricted_Stock_Market_Based_
Restricted Stock - Market Based Awards Fair Value Assumptions (Details) (Restricted Stock - Market Based Awards, USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Rate | Rate | |
Restricted Stock - Market Based Awards | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
Expected term of award | '3 years | '3 years |
Risk-free interest rate | 0.80% | 0.40% |
Expected Volatility | 55.20% | 56.60% |
Granted | $56.87 | $49.04 |
Schedule_of_Changes_in_Restric1
Schedule of Changes in Restricted Stock - Market Based Awards (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 'The SARs vest ratably over a three-year period and may be exercised at any point after vesting through 10 years from the date of issuance. Pursuant to the terms of the awards, upon exercise, the executive officers will receive, in shares of common stock, the excess of the market price of the award on the date of exercise over the market price of the award on the date of issuance. | ' |
Restricted Stock - Market Based Awards | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 'The fair value of the market-based restricted shares is amortized ratably over the requisite service period, primarily three years. The market-based shares vest if the participant is continuously employed throughout the performance period and the market-based performance measure is achieved, with a maximum vesting period of five years. All compensation cost related to the market-based awards will be recognized if the requisite service period is fulfilled, even if the market condition is not achieved. | ' |
Time based shares granted to executives | 42,151 | ' |
Number of Shares | ' | ' |
Outstanding beginning of year, January 1, | 72,111 | ' |
Granted | 42,151 | ' |
Outstanding at June 30, | 114,262 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' |
Outstanding at beginning of year, January 1, | $43.75 | ' |
Granted | $56.87 | $49.04 |
Outstanding at June 30, | $48.59 | ' |
Total intrinsic value of market-based awards non-vested | $7,216,000 | $4,235,000 |
Market price per common share as of June 30, | $63.15 | $51.48 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $3,100,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | '1 year 11 months 29 days | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 15, 2010 | |
Restricted stock | Restricted stock | Restricted stock | Restricted stock | SARs | SARs | SARs | SARs | Stock options | Stock options | Stock options | Stock options | Non employee director deferred compensation | Non employee director deferred compensation | Non employee director deferred compensation | Non employee director deferred compensation | Convertible senior note | Convertible senior note | Convertible senior note | Convertible senior note | 3.25% Convertible Senior Notes due 2016 | |||||
Reconciliation of Weighted-Average Diluted Shares Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares outstanding - basic | 35,762,000 | 30,332,000 | 35,726,000 | 30,301,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | ' | ' | ' | ' | 0 | 313,000 | 0 | 0 | 0 | 26,000 | 0 | 0 | 0 | 1,000 | 0 | 0 | 0 | 4,000 | 0 | 0 | 0 | 338,000 | 0 | 0 | ' |
Weighted Average Number of Shares Outstanding - Diluted | 35,762,000 | 31,014,000 | 35,726,000 | 30,301,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive Effect | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,878,000 | 25,000 | 1,722,000 | 1,164,000 | 896,000 | 5,000 | 859,000 | 893,000 | 92,000 | 20,000 | 96,000 | 54,000 | 4,000 | 0 | 4,000 | 7,000 | 5,000 | 0 | 5,000 | 4,000 | 881,000 | 0 | 758,000 | 206,000 | ' |
Convertible Senior Note Due 2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
3.25% Convertible Note, Shares To Be Received Upon Conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,700,000 |
3.25% Convertible Note, Conversion Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $42.40 |
Divestitures_and_Discontinued_1
Divestitures and Discontinued Operations Additional Information (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Shallow Upper Devonian Sale | ' |
Additional Disclosures | ' |
Oil and gas assets sale price before adjustments | $20,600,000 |
Proceeds from Sale of Oil and Gas Property and Equipment | 900,000 |
Purchase Price - Notes Receivable | 3,300,000 |
Purchase Price - Accounts Receivable | 800,000 |
Piceance and NECO Asset Group | ' |
Additional Disclosures | ' |
Proceeds from Sale of Oil and Gas Property and Equipment | 177,600,000 |
Proceeds To Non-Affiliated Investor Partners | 17,000,000 |
Pre-tax loss on sale of crude oil and gas properties | -2,300,000 |
Shallow Upper Devonian Sale | PDCE proportionate share | ' |
Additional Disclosures | ' |
Oil and gas assets sale price before adjustments | 5,100,000 |
Shallow Upper Devonian Letter of Credit | ' |
Additional Disclosures | ' |
Letters of Credit Novated | $6,700,000 |
Discontinued_Operations_and_Di
Discontinued Operations and Disposal Groups (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 |
Piceance and NECO Asset Group | Discontinued Operations | Discontinued Operations | |||||
Statement of Operations - Discontinued Operations | ' | ' | ' | ' | ' | ' | ' |
Crude oil, natural gas and NGL sales | ' | ' | ' | ' | ' | $10,182 | $20,456 |
Sales from natural gas marketing | ' | ' | ' | ' | ' | 586 | 1,036 |
Well operations, pipeline income and other | ' | ' | ' | ' | ' | 409 | 859 |
Total revenues | ' | ' | ' | ' | ' | 11,177 | 22,351 |
Production Costs | ' | ' | ' | ' | ' | 2,564 | 7,957 |
Cost of natural gas marketing | ' | ' | ' | ' | ' | 540 | 994 |
Depreciation, depletion and amortization | ' | ' | ' | ' | ' | 0 | 2,258 |
Other | ' | ' | ' | ' | ' | 1,959 | 2,454 |
Loss on sale of properties and equipment | ' | ' | ' | ' | 2,300 | 1,076 | 1,076 |
Total costs, expenses and other | ' | ' | ' | ' | ' | 6,139 | 14,739 |
Income from discontinued operations | ' | ' | ' | ' | ' | 5,038 | 7,612 |
Provision for income taxes | ' | ' | ' | ' | ' | -1,622 | -2,659 |
Income from discontinued operations, net of tax | $0 | $3,416 | $0 | $4,953 | ' | $3,416 | $4,953 |
Transactions_with_Affiliates_a2
Transactions with Affiliates and Other Related Parties (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Related Party Transactions: | ' | ' | ' | ' |
Production costs | $26,754,000 | $16,176,000 | $47,958,000 | $32,034,000 |
Exploration expense | 277,000 | 1,437,000 | 584,000 | 3,126,000 |
General and administrative expense | 40,665,000 | 15,783,000 | 64,277,000 | 30,898,000 |
PDCM | ' | ' | ' | ' |
Related Party Transactions: | ' | ' | ' | ' |
Amount included in cost of natural gas marketing | 10,700,000 | 4,100,000 | 20,100,000 | 7,800,000 |
Well operating and administrative services billed to PDCM | 2,100,000 | 3,400,000 | 4,400,000 | 6,800,000 |
PDCE proportionate share | ' | ' | ' | ' |
Related Party Transactions: | ' | ' | ' | ' |
Production costs | 417,000 | 986,000 | 1,022,000 | 2,053,000 |
Exploration expense | 0 | 134,000 | 0 | 239,000 |
General and administrative expense | 625,000 | 618,000 | 1,181,000 | 1,132,000 |
Affiliated Partnerships | ' | ' | ' | ' |
Related Party Transactions: | ' | ' | ' | ' |
Amount included in cost of natural gas marketing | ' | $300,000 | ' | $600,000 |
Business_segments_Details
Business segments (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Segment Reporting Information: | ' | ' | ' | ' | ' |
Revenues | $109,472 | $121,305 | $239,734 | $193,131 | ' |
Segment income (loss) before income taxes | -48,733 | 26,293 | -52,247 | -37,154 | ' |
Total Assets | 2,086,425 | ' | 2,086,425 | ' | 2,025,203 |
Oil and gas exploration and production segment | ' | ' | ' | ' | ' |
Segment Reporting Information: | ' | ' | ' | ' | ' |
Revenues | 87,057 | 103,226 | 190,382 | 161,382 | ' |
Segment income (loss) before income taxes | 6,265 | 56,372 | 40,271 | 22,671 | ' |
Total Assets | 1,977,181 | ' | 1,977,181 | ' | 1,937,251 |
Gas marketing segment | ' | ' | ' | ' | ' |
Segment Reporting Information: | ' | ' | ' | ' | ' |
Revenues | 22,415 | 18,079 | 49,352 | 31,749 | ' |
Segment income (loss) before income taxes | -13 | 13 | 54 | -52 | ' |
Total Assets | 23,669 | ' | 23,669 | ' | 20,342 |
Corporate and other segment | ' | ' | ' | ' | ' |
Segment Reporting Information: | ' | ' | ' | ' | ' |
Segment income (loss) before income taxes | -54,985 | -30,092 | -92,572 | -59,773 | ' |
Total Assets | $85,575 | ' | $85,575 | ' | $67,610 |
Subsequent_Events_Details
Subsequent Events (Details) (PDCM Divestiture, PDCM Divestiture, USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jul. 29, 2014 |
PDCM Divestiture | PDCM Divestiture | ' |
Subsequent Event [Line Items] | ' |
Ownership interest in PDCM | 50.00% |
Divestiture gross consideration ($ million) | $250 |
Divestiture net consideration ($ million) | 190 |
Cash received from PDCM divestiture ($ million) | 150 |
Promissory note from PDCM divestiture ($ million) | $40 |