Document and Entity Information
Document and Entity Information Document - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Apr. 22, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PDC ENERGY, INC. | ||
Entity Central Index Key | 0000077877 | ||
Trading Symbol | PDCE | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Mar. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | Q1 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 66,282,650 | ||
Smaller Reporting Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3,971,039,266 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,112 | $ 1,398 |
Accounts receivable, net | 190,844 | 181,434 |
Fair value of derivatives | 13,330 | 84,492 |
Prepaid expenses and other current assets | 7,870 | 7,136 |
Total current assets | 213,156 | 274,460 |
Properties and equipment, net | 4,121,649 | 4,002,862 |
Assets held-for-sale, net | 152,847 | 140,705 |
Fair value of derivatives | 24,225 | 93,722 |
Other assets | 52,051 | 32,396 |
Total Assets | 4,563,928 | 4,544,145 |
Current liabilities: | ||
Accounts payable | 215,555 | 181,864 |
Production tax liability | 55,430 | 60,719 |
Fair value of derivatives | 43,899 | 3,364 |
Funds held for distribution | 91,615 | 105,784 |
Accrued interest payable | 15,194 | 14,150 |
Other accrued expenses | 68,836 | 75,133 |
Total current liabilities | 490,529 | 441,014 |
Long-term debt | 1,289,046 | 1,194,876 |
Deferred income taxes | 160,609 | 198,096 |
Asset retirement obligations | 82,497 | 85,312 |
Liabilities held for sale | 4,614 | 4,111 |
Fair value of derivatives | 1,815 | 1,364 |
Other liabilities | 125,063 | 92,664 |
Total liabilities | 2,154,173 | 2,017,437 |
Commitments and contingent liabilities | ||
Stockholders' Equity: | ||
Common shares - par value $0.01 per share, 150,000,000 authorized, 66,196,863 and 66,148,609 issued as of March 31, 2019 and December 31, 2018, respectively | 662 | 661 |
Additional paid-in capital | 2,521,558 | 2,519,423 |
Retained earnings (deficit) | (111,449) | 8,727 |
Treasury shares - at cost, 22,635 and 45,220 as of March 31, 2019 and December 31, 2018, respectively | (1,016) | (2,103) |
Total stockholders' equity | 2,409,755 | 2,526,708 |
Total Liabilities and Stockholders' Equity | $ 4,563,928 | $ 4,544,145 |
Balance Sheet Parenthetical (Pa
Balance Sheet Parenthetical (Parentheticals) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 66,196,863 | 66,148,609 |
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 | 22,635 | 45,220 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Crude oil, natural gas and NGLs sales | $ 321,099 | $ 305,225 |
Commodity price risk management loss, net | (190,074) | (47,240) |
Other income | 3,475 | 2,615 |
Total revenues | 134,500 | 260,600 |
Costs, expenses and other: | ||
Lease operating expenses | 35,221 | 29,636 |
Production taxes | 22,168 | 20,169 |
Transportation, gathering and processing expenses | 11,424 | 7,313 |
Exploration, geologic and geophysical expense | 2,643 | 2,646 |
Impairment of properties and equipment | 7,875 | 33,188 |
General and administrative expense | 39,598 | 35,696 |
Depreciation, depletion and amortization | 151,422 | 126,788 |
Accretion of asset retirement obligations | 1,584 | 1,288 |
(Gain) loss on sale of properties and equipment | (369) | 1,432 |
Other expenses | 3,554 | 2,768 |
Total cost, expenses and other | 275,120 | 260,924 |
Income (loss) from operations | (140,620) | (324) |
Interest expense | (16,978) | (17,529) |
Interest income | 10 | 148 |
Income (loss) before income taxes | (157,588) | (17,705) |
Income tax (expense) benefit | 37,412 | 4,566 |
Net income (loss) | $ (120,176) | $ (13,139) |
Earnings per share: | ||
Basic | $ (1.82) | $ (0.20) |
Diluted | $ (1.82) | $ (0.20) |
Weighted-average common shares outstanding | ||
Basic | 66,182 | 65,957 |
Diluted | 66,182 | 65,957 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income (loss) | $ (120,176) | $ (13,139) |
Net income (loss) | (120,176) | (13,139) |
Adjustments to net income (loss) to reconcile to net cash provided by operating activities: | ||
Net change in fair value of unsettled derivatives | 181,622 | 21,202 |
Depreciation, depletion and amortization | 151,422 | 126,788 |
Impairment of properties and equipment | 7,875 | 33,188 |
Accretion of asset retirement obligations | 1,584 | 1,288 |
Non-cash stock-based compensation | 4,683 | 5,261 |
(Gain) loss on sale of properties and equipment | (369) | 1,432 |
Amortization of debt discount and issuance costs | 3,349 | 3,246 |
Deferred income taxes | (37,487) | (4,809) |
Other | 21 | 515 |
Changes in assets and liabilities | (10,671) | 30,177 |
Net cash from operating activities | 181,853 | 205,149 |
Cash flows from investing activities: | ||
Capital expenditures for development of crude oil and natural gas properties | (266,940) | (196,917) |
Capital expenditures for other properties and equipment | (4,826) | (1,066) |
Acquisition of crude oil and natural gas properties, including settlement adjustments | 0 | (180,825) |
Proceeds from sale of properties and equipment | 102 | 20 |
Proceeds from divestiture | 0 | 39,023 |
Restricted cash | 0 | 1,249 |
Net cash from investing activities | (271,664) | (338,516) |
Cash flows from financing activities: | ||
Proceeds from revolving credit facility | 432,000 | 35,000 |
Repayment of revolving credit facility | (340,500) | (35,000) |
Purchase of treasury shares | 1,460 | 2,255 |
Other | (515) | (379) |
Net cash from financing activities | 89,525 | (2,634) |
Net change in cash, cash equivalents, and restricted cash | (286) | (136,001) |
Cash, cash equivalents and restricted cash, beginning of period | 9,399 | 189,925 |
Cash, cash equivalents and restricted cash, end of period | 9,113 | 53,924 |
Cash payments (receipts) for: | ||
Interest, net of capitalized interest | 12,602 | 12,343 |
Income taxes | 0 | 193 |
Non-cash investing and financing activities: | ||
Change in accounts payable related to purchases of properties and equipment | 14,941 | 51,093 |
Change in asset retirement obligation, with a corresponding change to crude oil and natural gas properties, net of disposals | $ 2,794 | $ 5,354 |
Consolidated Statement of Equit
Consolidated Statement of Equity (Statement) - USD ($) $ in Thousands | Total | Parent [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||||
Shares, Issued | (65,955,080) | (55,927) | ||||
Issuance of stock awards, net of forfeitures | 43,930 | |||||
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | ||||||
Purchase of treasury shares | (41,357) | |||||
Issuance of treasury shares | 0 | 70,603 | ||||
Non-employee directors' deferred compensation plan | (2,574) | |||||
Stockholders' Equity Beginning, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2017 | $ 2,507,649 | $ 659 | $ 2,503,294 | $ 6,704 | $ (3,008) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchase of treasury shares | $ (2,255) | (2,255) | (2,255) | |||
Issuance of stock awards, net of forfeitures | 0 | (1) | (1) | |||
Share-based Compensation expense | 5,261 | 5,261 | 5,261 | |||
Issuance of treasury shares | 0 | 0 | (3,891) | (3,891) | ||
Non-employee directors' deferred compensation plan | (142) | 0 | (142) | |||
Net income (loss) | (13,139) | (13,139) | (13,139) | |||
Stockholders' Equity Ending, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2018 | 2,497,374 | $ 660 | 2,504,663 | (6,435) | $ (1,514) | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||||
Shares, Issued | (65,999,010) | (29,255) | ||||
Shares, Issued | (66,148,609) | (45,220) | ||||
Issuance of stock awards, net of forfeitures | 112,626 | |||||
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | ||||||
Purchase of treasury shares | (41,787) | |||||
Issuance of treasury shares | (64,372) | 64,372 | ||||
Non-employee directors' deferred compensation plan | 0 | |||||
Stockholders' Equity Beginning, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2018 | 2,526,708 | $ 661 | 2,519,423 | 8,727 | $ (2,103) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchase of treasury shares | (1,460) | (1,460) | (1,460) | |||
Issuance of stock awards, net of forfeitures | 0 | 0 | (2,547) | 2,547 | ||
Share-based Compensation expense | 4,683 | 4,683 | 4,683 | |||
Issuance of treasury shares | 0 | (1) | (1) | 0 | ||
Non-employee directors' deferred compensation plan | 0 | 0 | 0 | |||
Net income (loss) | $ (120,176) | (120,176) | (120,176) | |||
Stockholders' Equity Ending, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2019 | 2,409,755 | $ 662 | 2,521,558 | $ (111,449) | $ (1,016) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Other | $ 0 | $ 0 | ||||
Shares, Issued | (66,196,863) | (22,635) |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2019 | |
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 acquires, explores and develops properties for the production of crude oil, natural gas and NGLs, with operations in the Wattenberg Field in Colorado and the Delaware Basin in Texas. Our operations in the Wattenberg Field are focused in the rural areas of the horizontal Niobrara and Codell plays and our Delaware Basin operations are primarily focused in the Wolfcamp zones. We previously operated properties in the Utica Shale in Southeastern Ohio; however, we divested these properties during the first quarter of 2018. As of March 31, 2019 , we owned an interest in approximately 2,800 gross productive wells. We are engaged in two operating segments: our oil and gas exploration and production segment and our gas marketing segment. Our gas marketing segment does not meet the quantitative thresholds to require disclosure as a separate reportable segment. All of our material operations are attributable to our exploration and production business; therefore, all of our operations are presented as a single segment for all periods presented. In 2018, we began the process of actively marketing our Delaware Basin crude oil gathering, natural gas gathering and produced water gathering and disposal assets for sale. In the second quarter of 2019, we entered into definitive agreements to divest the natural gas gathering and produced water gathering and disposal assets. These transactions are expected to close in mid-2019. We are also in the final stages of negotiations regarding the sale of our crude oil gathering assets. The accompanying unaudited condensed consolidated financial statements include the accounts of PDC, our wholly-owned subsidiaries and our proportionate share of 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 normal recurring adjustments, necessary for a fair statement 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 December 31, 2018 condensed consolidated balance sheet data was derived from audited statements, but does not include all disclosures required by U.S. GAAP. 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 2018 Form 10-K. Our results of operations and cash flows for the three months ended March 31, 2019 |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash, cash equivalents and restricted cash. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported on the condensed consolidated balance sheets at March 31, 2019 and 2018 and December 31, 2018 and 2017, which sum to the total of cash, cash equivalents and restricted cash in the consolidated statements of cash flows: March 31, 2019 December 31, 2018 March 31, 2018 December 31, 2017 (in thousands) Cash and cash equivalents $ 1,112 $ 1,398 $ 45,923 $ 180,675 Restricted cash 8,001 8,001 8,001 9,250 Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 9,113 $ 9,399 $ 53,924 $ 189,925 Restricted cash is included in other assets on the condensed consolidated balance sheets. Recently Adopted Accounting Standards In February 2016, the FASB issued an accounting update and subsequent amendments aimed at increasing the transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about related leasing arrangements (the “New Lease Standard”). For leases with terms of more than 12 months, the accounting update requires lessees to recognize a right-of-use ("ROU") asset and lease liability for its right to use the underlying asset and the corresponding lease obligation. As provided by practical expedients, we made accounting policy elections to not recognize ROU assets and lease liabilities that arise from short-term leases and to not separate lease and non-lease components for any class of underlying asset. The FASB issued an accounting update which provides an optional transition practical expedient for the adoption of the New Lease Standard that, if elected, permits an organization to not evaluate the accounting for existing land easements that are not accounted for under the previous lease accounting standard. We elected this practical expedient, and accordingly, existing land easements at December 31, 2018 were not assessed. All new or modified land easements entered into after January 1, 2019 will be evaluated under the New Lease Standard. The New Lease Standard does not apply to leases of mineral rights to explore for or use crude oil and natural gas. Adoption of the New Lease Standard resulted in increases to other assets of $20.1 million , other accrued expenses of $4.6 million and other liabilities of $15.5 million |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE RECOGNITION Crude oil, natural gas and NGLs revenues are recognized when we have transferred control of crude oil, natural gas or NGLs production to the purchaser. We consider the transfer of control to have occurred when the purchaser has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the crude oil, natural gas or NGLs production. We record sales revenue based on an estimate of the volumes delivered at estimated prices as determined by the applicable sales agreement. We estimate our sales volumes based on company-measured volume readings. We then adjust our crude oil, natural gas and NGLs sales in subsequent periods based on the data received from our purchasers that reflects actual volumes delivered and prices received. We receive payment for sales one to two months after actual delivery has occurred. The differences in sales estimates and actual sales are recorded one to two months later. Historically, these differences have not been material. Disaggregated Revenue. The following table presents crude oil, natural gas and NGLs sales disaggregated by commodity and operating region for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, Revenue by Commodity and Operating Region 2019 2018 Percent Change Crude oil Wattenberg Field $ 180,426 $ 170,306 5.9 % Delaware Basin 50,657 53,418 (5.2 )% Utica Shale (1) — 2,696 (100.0 )% Total $ 231,083 $ 226,420 2.1 % Natural gas Wattenberg Field $ 46,701 $ 29,772 56.9 % Delaware Basin 5,770 7,679 (24.9 )% Utica Shale (1) — 1,110 (100.0 )% Total $ 52,471 $ 38,561 36.1 % NGLs Wattenberg Field $ 27,722 $ 28,770 (3.6 )% Delaware Basin 9,823 10,635 (7.6 )% Utica Shale (1) — 839 (100.0 )% Total $ 37,545 $ 40,244 (6.7 )% Revenue by Operating Region Wattenberg Field $ 254,849 $ 228,848 11.4 % Delaware Basin 66,250 71,732 (7.6 )% Utica Shale (1) — 4,645 (100.0 )% Total $ 321,099 $ 305,225 5.2 % (1) In March 2018, we completed the disposition of our Utica Shale properties. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Measurement Inputs, Disclosure | FAIR VALUE OF 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 upon 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, determination that the source of the inputs is valid, 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. Our crude oil and natural gas fixed-price swaps are included in Level 2. Our collars are included in Level 3. Our basis swaps are included in Level 2 and 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: March 31, 2019 December 31, 2018 Significant Other Significant Total Significant Other Significant Total (in thousands) Total assets $ 21,177 $ 16,378 $ 37,555 $ 118,521 $ 59,693 $ 178,214 Total liabilities (42,326 ) (3,388 ) (45,714 ) (3,364 ) (1,364 ) (4,728 ) Net asset (liability) $ (21,149 ) $ 12,990 $ (8,159 ) $ 115,157 $ 58,329 $ 173,486 The following table presents a reconciliation of our Level 3 assets measured at fair value: Three Months Ended March 31, 2019 2018 (in thousands) Fair value of Level 3 instruments, net asset (liability) beginning of period $ 58,329 $ (9,687 ) Changes in fair value included in condensed consolidated statement of operations line item: Commodity price risk management loss, net (43,520 ) (2,152 ) Settlements included in condensed consolidated statement of operations line items: Commodity price risk management loss, net (1,819 ) 3,006 Fair value of Level 3 instruments, net liability end of period $ 12,990 $ (8,833 ) Net change in fair value of Level 3 unsettled derivatives included in condensed consolidated statement of operations line item: Commodity price risk management loss, net $ (38,680 ) $ 1,205 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. There has been no change in the methodology we apply to measure the fair value of our Level 3 derivative contracts during the periods covered by the financial statements. 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. We utilize fair value on a nonrecurring basis to review our proved crude oil and natural gas properties for possible impairment when events and circumstances indicate a possible decline in the recoverability of the carrying value of such assets. The fair value of the properties is determined based upon estimated future discounted cash flow, a Level 3 input, using estimated production and prices at which we reasonably expect the crude oil and natural gas will be sold. The portion of our long-term debt related to our revolving credit facility 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, we have determined an estimate of the fair values based on measurements of trading activity and broker and/or dealer quotes, respectively, which are published market prices, and therefore are Level 2 inputs. The table below presents these estimates of the fair value of the portion of our long-term debt related to our senior notes and convertible notes as of: As of March 31, 2019 As of December 31, 2018 Estimated Fair Value Percent of Par Estimated Fair Value Percent of Par (in millions) Senior notes: 2021 Convertible Notes $ 188.1 94.1 % $ 175.4 87.7 % 2024 Senior Notes 398.9 99.7 % 370.2 92.5 % 2026 Senior Notes 583.7 97.3 % 532.4 88.7 % Concentration of Risk Derivative Counterparties. A portion of our liquidity relates to commodity derivative instruments that enable us to manage a portion of our exposure to price volatility from producing crude oil and natural gas. These 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 commodity derivative contracts. To date, we have had no derivative counterparty default losses. 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 current counterparties on the fair value of our derivative instruments is not significant at March 31, 2019 . Cash and Cash Equivalents. We consider all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents potentially subject us to a concentration of credit risk as substantially all of our deposits held in financial institutions were in excess of the FDIC insurance limits at March 31, 2019 and December 31, 2018 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | COMMODITY 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 enter into commodity derivative contracts to protect against price declines in future periods. While we structure these commodity derivatives to reduce our exposure to decreases in commodity prices, they also limit the benefit we might otherwise receive from price increases. We believe our commodity derivative instruments continue to be effective in achieving the risk management objectives for which they were intended. As of March 31, 2019 , we had derivative instruments, which were comprised of collars, fixed-price swaps and basis protection swaps, in place for a portion of our anticipated 2019, 2020 and 2021 production. Our commodity derivative contracts have been entered into at no upfront cost to us as we hedge our anticipated production at the then-prevailing commodity market prices, without adjustment for premium or discount. As of March 31, 2019 , we had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. Collars Fixed-Price Swaps Commodity/ Index/ Maturity Period Quantity (Crude oil - MBls Natural Gas - BBtu) Weighted-Average Contract Price Quantity (Crude Oil - MBbls Gas and Basis- BBtu ) Weighted- Average Contract Price Fair Value March 31, 2019 (1) (in thousands) Floors Ceilings Crude Oil NYMEX 2019 2,050 $ 56.22 $ 67.77 6,150 $ 54.25 $ (35,191 ) 2020 3,600 55.00 71.68 5,600 61.55 27,831 2021 — — — 600 57.23 350 Total Crude Oil 5,650 12,350 $ (7,010 ) Natural Gas NYMEX 2019 — $ — $ — 22,746 $ 2.91 $ 2,641 Dominion South 2019 — — — 113 2.56 6 2020 — — — 14 2.54 — Total Natural Gas — 22,873 $ 2,647 Basis Protection - Natural Gas CIG 2019 — $ — $ — 22,683 $ (0.76 ) $ (3,796 ) Total Basis Protection - Natural Gas — 22,683 $ (3,796 ) Commodity Derivatives Fair Value $ (8,159 ) _____________ (1) Approximately 43.6 percent of the fair value of our commodity derivative assets and 7.4 percent of the fair value of our commodity derivative liabilities were measured using significant unobservable inputs (Level 3). We have not elected to designate any of our derivative instruments as cash flow hedges; therefore, these instruments do not qualify for hedge accounting. Accordingly, changes in the fair value of our derivative instruments are recorded in the condensed consolidated statements of operations. The following table presents the balance sheet location and fair value amounts of our derivative instruments on the condensed consolidated balance sheets: Fair Value Derivative Instruments: Condensed Consolidated Balance Sheet Line Item March 31, 2019 December 31, 2018 (in thousands) Derivative assets: Current Commodity derivative contracts Fair value of derivatives $ 13,330 $ 84,492 Non-current Commodity derivative contracts Fair value of derivatives 24,225 93,722 Total derivative assets $ 37,555 $ 178,214 Derivative liabilities: Current Commodity derivative contracts Fair value of derivatives $ 40,103 $ 748 Basis protection derivative contracts Fair value of derivatives 3,796 2,616 43,899 3,364 Non-current Commodity derivative contracts Fair value of derivatives 1,815 1,364 Total derivative liabilities $ 45,714 $ 4,728 The following table presents the impact of our derivative instruments on our condensed consolidated statements of operations: Three Months Ended March 31, Condensed Consolidated Statement of Operations Line Item 2019 2018 (in thousands) Commodity price risk management loss, net Net settlements $ (8,452 ) $ (26,038 ) Net change in fair value of unsettled derivatives (181,622 ) (21,202 ) Total commodity price risk management loss, net $ (190,074 ) $ (47,240 ) Our financial derivative agreements contain master netting provisions that provide for the net settlement of contracts through a single payment in the event of early termination. 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 March 31, 2019 Derivative Instruments, Gross Effect of Master Netting Agreements Derivative Instruments, Net (in thousands) Asset derivatives: Derivative instruments, at fair value $ 37,555 $ (27,793 ) $ 9,762 Liability derivatives: Derivative instruments, at fair value $ 45,714 $ (27,793 ) $ 17,921 As of December 31, 2018 Derivative Instruments, Gross Effect of Master Netting Agreements Derivative Instruments, Net (in thousands) Asset derivatives: Derivative instruments, at fair value $ 178,214 $ (3,985 ) $ 174,229 Liability derivatives: Derivative instruments, at fair value $ 4,728 $ (3,985 ) $ 743 |
Properties and Equipment
Properties and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |
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"): March 31, 2019 December 31, 2018 (in thousands) Properties and equipment, net: Crude oil and natural gas properties Proved $ 5,681,685 $ 5,452,613 Unproved 485,571 492,594 Total crude oil and natural gas properties 6,167,256 5,945,207 Infrastructure and other 59,510 60,612 Land and buildings 12,497 11,243 Construction in progress 404,229 356,095 Properties and equipment, at cost 6,643,492 6,373,157 Accumulated DD&A (2,521,843 ) (2,370,295 ) Properties and equipment, net $ 4,121,649 $ 4,002,862 Classification of Assets and Liabilities as Held-for-Sale. During the fourth quarter of 2018, as part of our plans to divest certain of our Delaware Basin crude oil gathering, natural gas gathering and produced water gathering and disposal assets, we began actively marketing the assets for sale; therefore, these assets are classified as held-for-sale as they met the criteria for such classification at March 31, 2019 and December 31, 2018 . The planned disposition of our Delaware Basin crude oil gathering, natural gas gathering and produced water gathering and disposal assets does not represent a strategic shift in our operations or have a significant impact on our operations or financial results; therefore, we will not account for the disposition as a discontinued operation. Also included in assets held-for-sale are certain non-core Delaware Basin crude oil and natural gas properties. The following table presents balance sheet data related to assets and liabilities held-for-sale: March 31, 2019 December 31, 2018 (in thousands) Assets Properties and equipment, net $ 150,360 $ 137,448 Other assets 2,487 3,257 Total assets $ 152,847 $ 140,705 Liabilities Asset retirement obligation $ 4,614 $ 4,111 Total liabilities $ 4,614 $ 4,111 The following table presents impairment charges recorded for crude oil and natural gas properties: Three Months Ended March 31, 2019 2018 (in thousands) Impairment of proved and unproved properties $ 7,875 $ 33,130 Amortization of individually insignificant unproved properties — 58 Impairment of crude oil and natural gas properties $ 7,875 $ 33,188 During the three months ended March 31, 2019 and 2018 , we recorded impairment charges totaling $7.9 million and $26.9 million , respectively, related to the divestiture of leaseholds and the then-current and anticipated near-term leasehold expirations within our non-focus areas of the Delaware Basin and made the determination that we would no longer pursue plans to develop these properties. We determined the fair value of the properties based upon estimated future discounted cash flow, a Level 3 input, using estimated production and prices at which we reasonably expect the crude oil and natural gas will be sold. During the three months ended March 31, 2018 , we also corrected an error in our calculation of the unproved properties and goodwill impairment originally reported in the quarter ended September 30, 2017. The correction of the error resulted in an additional impairment charge of $6.3 million , recorded in the three months ended March 31, 2018, which we have included in the impairment of properties and equipment expense line in our condensed consolidated statement of operations. We evaluated the error under the guidance of Accounting Standards Codification 250, Accounting Changes and Error Corrections ("ASC 250"). Based on the guidance in ASC 250, we determined that the impact of the error did not have a material impact on our previously-issued financial statements or those of the period of correction. Suspended Well Costs. The following table presents the capitalized exploratory well cost pending determination of proved reserves and included in properties and equipment, net on the condensed consolidated balance sheets: March 31, 2019 December 31, 2018 (in thousands, except for number of wells) Beginning balance $ 12,188 $ 15,448 Additions to capitalized exploratory well costs pending the determination of proved reserves 12,853 35,127 Reclassifications to proved properties — (38,387 ) Ending balance $ 25,041 $ 12,188 Number of wells pending determination at period end 2 2 |
Other Accrued Expenses Other Ac
Other Accrued Expenses Other Accrued Expenses (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Other Accrued Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER ACCRUED EXPENSES AND OTHER LIABILITIES Other Accrued Expenses. The following table presents the components of other accrued expenses as of: March 31, 2019 December 31, 2018 (in thousands) Employee benefits $ 10,188 $ 25,811 Asset retirement obligations 28,798 25,598 Environmental expenses 3,554 3,038 Operating and finance leases 6,645 — Other 19,651 20,686 Other accrued expenses $ 68,836 $ 75,133 Other Liabilities. The following table presents the components of other liabilities as of: March 31, 2019 December 31, 2018 (in thousands) Production taxes $ 78,805 $ 61,310 Deferred oil gathering credit 22,207 22,710 Operating and finance leases 20,063 — Other 3,988 8,644 Other liabilities $ 125,063 $ 92,664 Deferred Oil Gathering Credit. In January 2018, we received a payment from a midstream service provider for the execution of an amendment to an existing crude oil PSA signed in December 2017. The amendment was effective contingent upon certain events which occurred in late January 2018. The amendment, among other things, dedicates crude oil from the majority of our Wattenberg Field acreage to the midstream provider's gathering lines and extends the term of the agreement through December 2029. The payment is being amortized using the straight-line method over the life of the amendment. Amortization charges totaling approximately $0.5 million and $0.4 million for the three months ended March 31, 2019 and 2018 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT Long-term debt consisted of the following as of: March 31, 2019 December 31, 2018 (in thousands) Senior Notes: 1.125% Convertible Notes due September 2021: Principal amount $ 200,000 $ 200,000 Unamortized discount (20,807 ) (22,766 ) Unamortized debt issuance costs (2,397 ) (2,640 ) Net of unamortized discount and debt issuance costs 176,796 174,594 6.125% Senior Notes due September 2024: Principal amount 400,000 400,000 Unamortized debt issuance costs (5,346 ) (5,590 ) Net of unamortized debt issuance costs 394,654 394,410 5.75% Senior Notes due May 2026: Principal amount 600,000 600,000 Unamortized debt issuance costs (6,404 ) (6,628 ) Net of unamortized debt issuance costs 593,596 593,372 Total senior notes 1,165,046 1,162,376 Revolving Credit Facility: Revolving credit facility due May 2023 124,000 32,500 Total long-term debt, net of unamortized discount and debt issuance costs $ 1,289,046 $ 1,194,876 Senior Notes 2021 Convertible Notes. In September 2016 , we issued $200 million of 1.125% convertible notes due September 15, 2021 (the "2021 Convertible Notes"). Interest is payable in cash semi-annually on March 15 and September 15 . The conversion price at maturity is $ 85.39 per share. We allocated the gross proceeds of the 2021 Convertible Notes between the liability and equity components of the debt. The initial $160.5 million liability component was determined based on the fair value of similar debt instruments, excluding the conversion feature, priced on the same day we issued the 2021 Convertible Notes. Approximately $4.8 million in costs associated with the issuance of the 2021 Convertible Notes were capitalized as debt issuance costs. As of March 31, 2019 , the unamortized debt discount will be amortized over the remaining contractual term to maturity of the 2021 Convertible Notes using the effective interest method. Upon conversion, the 2021 Convertible Notes may be settled, at our sole election, in shares of our common stock, cash or a combination of cash and shares of our common stock. We have initially elected a combination settlement method to satisfy our conversion obligation, which allows us to settle the principal amount of the 2021 Convertible Notes in cash and to settle the excess conversion value, if any, in shares of our common stock, with cash paid in lieu of fractional shares. 2024 Senior Notes. In September 2016 , we issued $400 million aggregate principal amount of 6.125% senior notes due September 15, 2024 (the “2024 Senior Notes”). The 2024 Senior Notes accrue interest from the date of issuance and interest is payable semi-annually on March 15 and September 15 . Approximately $7.8 million in costs associated with the issuance of the 2024 Senior Notes were capitalized as debt issuance costs and are being amortized as interest expense over the life of the notes using the effective interest method. 2026 Senior Notes. In November 2017, we issued $600 million aggregate principal amount of 5.75% senior notes due May 15, 2026 (the "2026 Senior Notes"). The 2026 Senior Notes accrue interest from the date of issuance and interest is payable semi-annually on May 15 and November 15 . Approximately $7.6 million in costs associated with the issuance of the 2026 Senior Notes were capitalized as debt issuance costs and are being amortized as interest expense over the life of the notes using the effective interest method. Our wholly-owned subsidiary PDC Permian, Inc. guarantees our obligations under the 2021 Convertible Notes, the 2026 Senior Notes and the 2024 Senior Notes (collectively, the "Notes"). Accordingly, condensed consolidating financial information for PDC and PDC Permian, Inc. is presented in the footnote titled Subsidiary Guarantor . As of March 31, 2019 , we were in compliance with all covenants related to the Notes. Revolving Credit Facility In May 2018, we entered into a Fourth Amended and Restated Credit Agreement (the “Restated Credit Agreement”). Among other things, the Restated Credit Agreement provides for a maximum credit amount of $2.5 billion and, as of March 31, 2019, a borrowing base of $1.3 billion . The amount we may borrow under the Restated Credit Agreement is subject to certain limitations under our Notes. The revolving credit facility is available for working capital requirements, capital investments, acquisitions, to support letters of credit and for general corporate purposes. The borrowing base is based on, among other things, the loan value assigned to the proved reserves attributable to our crude oil and natural gas interests. The borrowing base is subject to a semi-annual redetermination on November 1 and May 1 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. Substantially all of our crude oil and natural gas properties, excluding our share of properties held by the limited partnerships that we sponsor, have been mortgaged or pledged as security for our revolving credit facility. The outstanding principal amount under the revolving credit facility accrues interest at a varying interest rate that fluctuates with an alternate base rate (equal to the greatest of the administrative agent's prime rate, the federal funds rate plus a premium and the rate for dollar deposits in the London interbank market (“LIBOR”) for one month, plus a premium) or, at our election, a rate equal to LIBOR for certain time periods. Additionally, commitment fees, interest margin and other bank fees, charged as a component of interest, vary with our utilization of the facility. As of March 31, 2019 , the applicable interest margin is 0.25 percent for the alternate base rate option or 1.25 percent for the LIBOR option, and the unused commitment fee is 0.375 percent . Principal payments are generally not required until the revolving credit facility expires in May 2023 , unless the borrowing base falls below the outstanding balance. 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 1.0:1.0 and (b) not exceed a maximum leverage ratio of 4.0:1.0. As of March 31, 2019 , we were in compliance with all the revolving credit facility covenants. As of March 31, 2019 and December 31, 2018 , debt issuance costs related to our revolving credit facility were $10.9 million and $11.5 million , respectively, and are included in other assets on the condensed consolidated balance sheets. As of March 31, 2019 , the weighted-average interest rate on the outstanding balance on our revolving credit facility, exclusive of fees on the unused commitment, was 4.5 percent |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee Operating and Financing Leases [Text Block] | LEASES On January 1, 2019, we adopted the New Lease Standard issued by the FASB. We determine if an arrangement is representative of a lease under the New Lease Standard at contract inception. ROU assets represent our right to use the underlying assets for the lease term and the corresponding lease liabilities represent our obligations to make lease payments arising from the leases. Operating and finance lease ROU assets and liabilities are recognized at the commencement date based on the present value of the expected lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we utilize our incremental borrowing rate based on information available at the commencement date in determining the present value of lease payments. Subsequent measurement, as well as presentation of expenses and cash flows, will depend upon the classification of the lease as either a finance or operating lease. Terms of our leases include options to extend or terminate the lease only when we can ascertain that it is reasonably certain we will exercise that option. We have operating leases for office space and compressors and finance leases for vehicles. Our leases have remaining lease terms ranging from one to five years . The vehicle leases include options to renew for up to four years. Lease payments associated with vehicle leases also include a contractually stated residual value guarantee. The following table presents the components of lease costs: Lease Costs Three Months Ended March 31, 2019 (in thousands) Operating lease costs $ 1,348 Finance lease costs: Amortization of ROU assets $ 483 Interest on lease liabilities 60 Total finance lease costs 543 Short-term lease costs 61,030 Total lease costs $ 62,921 Our operating lease costs are recorded in lease operating expenses or general and administrative expense and our finance lease costs are recorded in DD&A expense and interest expense on our condensed consolidated statements of operations. Our short-term lease costs include amounts that are capitalized as part of the cost of another asset and are recorded as properties and equipment in our condensed consolidated balance sheets or amounts recognized as expense in our condensed consolidated statements of operations. The following table presents leases and the balance sheet classification as of: Leases Condensed Consolidated Balance Sheet Line Item March 31, 2019 (in thousands) Operating Leases: Operating lease ROU assets Other assets $ 19,535 Operating lease obligation - short-term Other accrued expense $ 4,958 Operating lease obligation - long-term Other liabilities 17,055 Total operating lease liabilities $ 22,013 Finance Leases: Finance lease ROU assets Properties and equipment, net $ 4,748 Finance lease obligation - short-term Other accrued expense $ 1,687 Finance lease obligation - long-term Other liabilities 3,008 Total finance lease liabilities $ 4,695 Weighted-average remaining lease term (years) Operating leases 3.22 Finance leases 4.53 Weighted-average discount rate Operating leases 5.0 % Finance leases 5.0 % Maturity of lease liabilities by year and in the aggregate, under operating and financing leases with terms of one year or more, consist of the following: Operating Leases Finance Leases Total (in thousands) 2019 $ 4,378 $ 1,431 $ 5,809 2020 5,910 1,716 7,626 2021 5,782 1,101 6,883 2022 4,851 528 5,379 2023 1,394 321 1,715 Thereafter 2,291 6 2,297 Total lease payments 24,606 5,103 29,709 Less interest and discount (2,593 ) (408 ) (3,001 ) Present value of lease liabilities $ 22,013 $ 4,695 $ 26,708 |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2019 | |
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 interests in crude oil and natural gas properties: Amount (in thousands) Balance at December 31, 2018 $ 115,021 Obligations incurred with development activities 2,807 Accretion expense 1,584 Revisions in estimated cash flows 3,200 Obligations discharged with asset retirements and divestiture (6,703 ) Balance at March 31, 2019 115,909 Liabilities held-for-sale (4,614 ) Current portion (28,798 ) Long-term portion $ 82,497 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | COMMITMENTS AND CONTINGENCIES Firm Transportation and Processing Agreements. We enter into contracts that provide firm transportation and processing on pipeline systems through which we transport or sell crude oil and natural gas. Satisfaction of the volume requirements includes volumes produced by us, purchased from third parties and produced by our affiliated partnerships and other third-party working, royalty and overriding royalty interest owners whose volumes we market on their behalf. Our condensed consolidated statements of operations reflect our share of these firm transportation and processing costs. These contracts require us to pay these transportation and processing charges whether or not the required volumes are delivered. The following table presents gross volume information related to our long-term firm transportation, sales and processing agreements for pipeline capacity and water delivery and disposal commitments: For the Twelve Months Ending March 31, Area 2020 2021 2022 2023 2024 and Total Expiration Natural gas (MMcf) Wattenberg Field 26,772 31,025 31,025 31,025 85,290 205,137 April 30, 2026 Delaware Basin 47,150 33,410 16,097 — — 96,657 December 31, 2021 Gas Marketing 7,136 7,117 6,966 2,830 — 24,049 August 31, 2022 Total 81,058 71,552 54,088 33,855 85,290 325,843 Crude oil (MBbls) Wattenberg Field 9,740 6,227 5,475 5,475 450 27,367 April 30, 2023 Delaware Basin 8,227 8,580 8,030 8,030 6,050 38,917 December 31, 2023 Total 17,967 14,807 13,505 13,505 6,500 66,284 Water (MBbls) Wattenberg Field 3,886 6,207 6,207 6,206 10,899 33,405 December 31, 2024 Delaware Basin 3,660 3,650 3,650 3,650 870 15,480 June 26, 2023 Total 7,546 9,857 9,857 9,856 11,769 48,885 Dollar commitment (in thousands) $ 104,504 $ 80,633 $ 73,851 $ 68,882 $ 94,836 $ 422,706 Wattenberg Field. We have entered into two facilities expansion agreements with our primary midstream provider to expand and improve its natural gas gathering pipelines and processing facilities. The midstream provider completed and turned on line the first of the two 200 MMcfd cryogenic plants in August 2018. The second plant is currently scheduled to be completed by the end of the second quarter of 2019. We are bound to the volume requirements in these agreements on the first day of the calendar month following the actual in-service date of the relevant plant. Both agreements require baseline volume commitments, consisting of our gross wellhead volume delivered in November 2016 to this midstream provider, and incremental wellhead volume commitments of 51.5 MMcfd and 33.5 MMcfd for the first and second agreements, respectively, for seven years. We may be required to pay shortfall fees for any volumes under the 51.5 MMcfd and 33.5 MMcfd incremental commitments. Any shortfall in these volume commitments may be offset by other producers’ volumes sold to the midstream provider that are greater than a certain total baseline volume. We are also required for the first three years of the contracts to guarantee a certain target profit margin to the midstream provider on these incremental volumes. Payments made to date for such quantities have not been significant. Delaware Basin . In May 2018, we entered into a firm sales agreement that is effective from June 2018 through December 2023 with an integrated marketing company for our crude oil production in the Delaware Basin. Contracted volumes are currently 17,200 barrels of crude oil per day and increase over time to 26,400 barrels of crude oil per day. These agreements are expected to provide price diversification through realization of export market pricing via a Corpus Christi terminal and exposure to Brent-weighted prices. Crude Oil, Natural Gas and NGLs Sales . For the three months ended March 31, 2019 and 2018 , amounts related to long-term transportation volumes in the table above were $10.9 million and $2.6 million , respectively, and were netted against our crude oil and natural gas sales in our condensed consolidated statements of operations. , Litigation and Legal Items. We are involved in various legal proceedings. We review 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 our best interests. We have provided the necessary estimated accruals in the accompanying balance sheets where deemed appropriate for litigation and legal related items that are ongoing and not yet concluded. 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. Action Regarding Partnerships . In December 2017, we received an action entitled Dufresne, et al. v. PDC Energy, et al., filed in the United States District Court for the District of Colorado (the "Dufresne Case"). The original complaint stated that it was a derivative action brought by a number of limited partner investors seeking to assert claims on behalf of our two affiliated partnerships, Rockies Region 2006 LP and Rockies Region 2007 LP (collectively, the "Partnerships"), against PDC and includes claims for breach of fiduciary duty and breach of contract. The plaintiffs also included claims against two of our senior officers and three independent members of our Board of Directors for allegedly aiding and abetting PDC's breach of fiduciary duty. The lawsuit accuses PDC, as the managing general partner of the Partnerships, of, among other things, failing to maximize the productivity of the Partnerships’ crude oil and natural gas wells and improperly assigning the Partnerships only interests in the wells, as opposed to leasehold interests in surrounding acreage. In late April 2018, the plaintiffs filed an amendment to their complaint, which alleges additional facts and purports to add direct class action claims in addition to the original derivative claims. We filed a motion to dismiss this amended complaint and the claims against the individuals named as defendants on July 31, 2018. On February 19, 2019, the court granted the motion to dismiss, in part. It dismissed all claims against the individuals named as defendants. It also held that that the plaintiffs were time-barred from using the failure to assign acreage assignments to support their claims for breach of fiduciary duty against PDC. We filed an answer to the remaining claims on March 5, 2019. We understand that this action is stayed as a result of the partnership bankruptcy proceedings described in Partnership Bankruptcy Filings below. We are currently unable to estimate any potential damages resulting from this lawsuit. Partnership Bankruptcy Filings. On October 30, 2018, the Partnerships filed petitions under Chapter 11 of the Bankruptcy Code (the "Chapter 11 Proceedings") in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division (the "Bankruptcy Court"). The Partnerships intend to enter into a transaction with us, pursuant to which they will sell substantially all of their assets to us through a Chapter 11 plan of liquidation (the "Chapter 11 Plan") and provide a release of any claims, including those asserted in the Dufresne Case. The Partnerships remain in possession of their assets and continue to operate their businesses as debtors-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. In addition, a third-party (the “Responsible Party”) has been designated for the Partnerships. The Responsible Party is expected to oversee all actions for the Partnerships in connection with the Chapter 11 Proceedings, including actions relating to the anticipated transactions with us and seeking approval of the Chapter 11 Plan. In late November and early December 2018, the plaintiffs in the Dufresne Case filed several pleadings in the Bankruptcy Court, including one to dismiss the bankruptcy on grounds that PDC had no authority to hire the Responsible Party, the Responsible Party had no authority to cause the Partnerships to file bankruptcy, and the bankruptcy was filed solely for the purpose of gaining a litigation advantage in the Dufresne Case. The plaintiffs in the Dufresne Case also objected to the retention of the Responsible Party. PDC, the Partnerships and the plaintiffs in the Dufresne Case agreed to mediate their disputes. As a result, on December 17, 2018 the Bankruptcy Court entered an agreed order staying the bankruptcy motions and abating the Dufresne Case to allow the parties to mediate their disputes. The mediation was conducted in late February 2019, but the parties did not reach a settlement. As a result, on March 21, 2019, the Bankruptcy Court entered an agreed scheduling order with respect to the motion to dismiss and objection to the retention of the Responsible Party, with a hearing scheduled for June 2019. We do not believe that the Partnership's Chapter 11 Proceedings will have a material adverse effect on our financial position, results of operations or liquidity, but we cannot predict the outcome of such proceedings. Environmental. Due to the nature of the natural gas and oil industry, we are exposed to environmental risks. We have various policies and procedures to minimize and mitigate the risks from environmental contamination. We conduct periodic reviews and simulated drills 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. Except as discussed herein, we are not aware of any material environmental claims existing as of March 31, 2019 which have not been provided for or would otherwise have a material impact on our financial statements; however, there can be no assurance that current regulatory requirements will not change or that unknown potential past non-compliance with environmental laws or other environmental liabilities will not be discovered on our properties. Accrued environmental liabilities are recorded in other accrued expenses on the condensed consolidated balance sheets. The liability ultimately incurred with respect to a matter may exceed the related accrual. Clean Air Act Agreement and Related Consent Decree. In June 2017, following our receipt of a 2015 Clean Air Act information request from the Environmental Protection Agency ("EPA") and a 2015 compliance advisory from the Colorado Department of Public Health and Environment's (“CDPHE”) Air Pollution Control Division, the U.S. Department of Justice, on behalf of the EPA and the state of Colorado, filed a complaint against us in the U.S. District Court for the District of Colorado, claiming that we failed to operate and maintain certain condensate collection facilities at 65 facilities so as to minimize leakage of volatile organic compounds in compliance with applicable law. In October 2017, we entered into a consent decree to resolve the lawsuit and the compliance advisory. Pursuant to the consent decree, we agreed to implement a variety of operational enhancements and mitigation and similar projects, including vapor control system modifications and verification, increased inspection and monitoring and installation of tank pressure monitors. The three primary elements of the consent decree are: (i) fine/supplemental environmental projects ($ 1.5 million cash fine, plus $ 1 million in supplemental environmental projects) of which the cash fines and the full cost of supplemental environmental projects were paid in the first and third quarters of 2018, respectively, (ii) injunctive relief with an estimated cost of approximately $ 18 million , primarily representing capital enhancements to our operations and (iii) mitigation with an estimated cost of $ 1.7 million . We continue to incur costs associated with these activities. If we fail to comply fully with the requirements of the consent decree with respect to those matters, we could be subject to additional liability. We do not believe that the expenditures resulting from the settlement will have a material adverse effect on our consolidated financial statements. We are in the process of implementing the consent degree program. Over the course of its execution, we have identified certain immaterial deficiencies in our implementation of the program. We report these immaterial deficiencies to the appropriate authorities and remediate them promptly. We do not believe that the penalties and expenditures associated with the consent decree, including any sanctions associated with these deficiencies, will have a material effect on our financial condition or results of operations, but they may exceed $100,000 . In addition, in December 2018, we were named as a nominal defendant in a derivative action filed in the Delaware chancery court. The complaint, which seeks unspecified monetary damages and various forms of equitable relief, alleges that certain current and former members of our Board of Directors violated their fiduciary duties, committed waste and were unjustly enriched by, among other things, failing to implement adequate environmental safeguards in connection with the issues that gave rise to the Department of Justice lawsuit and consent decree. We believe that this lawsuit is without merit but cannot predict its outcome. |
Common Stock Common Stock (Note
Common Stock Common Stock (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | COMMON STOCK Stock-Based Compensation Plans 2018 Equity Incentive Plan . In May 2018, our stockholders approved a long-term equity compensation plan for our employees and non-employee directors (the “2018 Plan”). The 2018 Plan provides for a reserve of 1,800,000 shares of our common stock that may be issued pursuant to awards under the 2018 Plan and a term that expires in March 2028. Shares issued may be either authorized but unissued shares, treasury shares or any combination. Additionally, the 2018 Plan permits the reuse or reissuance of shares of common stock which were canceled, expired, forfeited or paid out in the form of cash. However, shares tendered or withheld to satisfy the exercise price of options or tax withholding obligations, and shares covering the portion of exercised stock-settled stock appreciation rights ("SARs") (regardless of the number of shares actually delivered), count against the share limit. Awards may be issued in the form of options, SARs, restricted stock, restricted stock units ("RSUs"), performance stock units ("PSUs") and other stock-based awards. Awards may vest over periods of continued service or the satisfaction of performance conditions set at the discretion of the Compensation Committee of our Board of Directors (the "Compensation Committee"), with a minimum one-year vesting period applicable to most awards. With regard to SARs and options, awards have a maximum exercisable period of ten years. We began issuing shares from the 2018 Plan during the three months ended March 31, 2019 . As of March 31, 2019 , there were 1,772,088 shares available for grant under the 2018 plan. 2010 Long-Term Equity Compensation Plan . Our Amended and Restated 2010 Long-Term Equity Compensation Plan, which was most recently approved by stockholders in 2013 (as the same has been amended and restated from time to time, the "2010 Plan"), remains outstanding and we may continue to use the 2010 Plan to grant awards. As of March 31, 2019 , there were 37,703 shares available for grant under the 2010 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 March 31, 2019 2018 (in thousands) Stock-based compensation expense $ 4,683 $ 5,261 Income tax benefit (1,120 ) (1,261 ) Stock-based compensation expense, net of tax $ 3,563 $ 4,000 Restricted Stock Units Time-Based Awards. The fair value of the time-based RSUs is amortized ratably over the requisite service period, primarily three years. The time-based RSUs generally vest ratably on each anniversary following the grant date provided that a participant is continuously employed. The following table presents the changes in non-vested time-based RSUs to all employees, including executive officers, for the three months ended March 31, 2019 : Shares Weighted-Average Non-vested at December 31, 2018 618,407 $ 54.16 Granted 189,137 38.59 Vested (93,685 ) 54.64 Forfeited (12,186 ) 48.38 Non-vested at March 31, 2019 701,673 50.00 The following table presents the weighted-average grant date fair value per share and related information as of/for the periods presented: Three Months Ended March 31, 2019 2018 (in thousands, except per share data) Total intrinsic value of time-based awards vested $ 3,311 $ 3,530 Total intrinsic value of time-based awards non-vested 28,544 26,297 Market price per share as of March 31 40.68 49.03 Weighted-average grant date fair value per share 38.59 50.94 Total compensation cost related to non-vested time-based awards and not yet recognized in our condensed consolidated statements of operations as of March 31, 2019 was $23.8 million . This cost is expected to be recognized over a weighted-average period of 1.9 years. Performance Stock Units Market-Based Awards. The fair value of the market-based PSUs 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 three 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. The Compensation Committee awarded a total of 139,197 market-based PSUs to our executive officers during the three months ended March 31, 2019 . In addition to continuous employment, the vesting of these PSUs is contingent on our total stockholder return ("TSR"), which is essentially our stock price change including any dividends over a three-year period ending on December 31, 2021, as compared to the TSR of a group of peer companies over the same period. The PSUs will result in a payout between zero and 200 percent of the target PSUs awarded. The weighted-average grant date fair value per PSU granted was computed using the Monte Carlo pricing model using the following assumptions: Three Months Ended March 31, 2019 2018 Expected term of award (in years) 3 3 Risk-free interest rate 2.5 % 2.4 % Expected volatility 41.4 % 42.3 % 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 the three months ended March 31, 2019 : Shares Weighted-Average Non-vested at December 31, 2018 102,914 $ 74.88 Granted 139,197 56.68 Non-vested at March 31, 2019 242,111 64.42 The following table presents the weighted-average grant date fair value per share and related information as of/for the periods presented: Three Months Ended March 31, 2019 2018 (in thousands, except per share data) Total intrinsic value of market-based awards non-vested $ 9,849 $ 6,815 Market price per common share as of March 31, 40.68 49.03 Weighted-average grant date fair value per share 56.68 69.98 Total compensation cost related to non-vested market-based awards not yet recognized in our condensed consolidated statements of operations as of March 31, 2019 was $11.6 million . This cost is expected to be recognized over a weighted-average period of 2.2 years. Stock Appreciation Rights The SARs vest ratably over a three-year period and may generally be exercised at any point after vesting through ten 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. No SARs were awarded or expired during the three months ended March 31, 2019 . Total compensation cost related to non-vested SARs granted and not yet recognized in our condensed consolidated statements of operations as of March 31, 2019 was $0.4 million . The cost is expected to be recognized over a weighted-average period of 0.8 years . Preferred Stock We are authorized to issue 50,000,000 shares of preferred stock, par value $0.01 per share, which may be issued in one or more series, with such rights, preferences, privileges and restrictions as shall be fixed by our Board of Directors from time to time. Through March 31, 2019 , no shares of preferred stock have been issued. Stock Repurchase Program In April 2019, our Board of Directors approved a stock repurchase program (the “Program”) to acquire up to $200 million of our outstanding common stock, depending on market conditions. The Program is expected to begin in the third quarter of 2019 with a target completion date of December 31, 2020 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | INCOME TAXES We compute our quarterly tax provision using the effective tax rate method by applying the anticipated annual effective rate to our year-to-date income or loss, except for discrete items. Income tax on discrete items is computed and recorded in the period in which the specific transaction occurs. Consequently, based upon the mix and timing of our actual annual earnings compared to annual projections, our effective tax rate may vary quarterly and may make quarterly comparisons not meaningful. The effective income tax rates differ from the statutory federal tax rate, primarily due to state taxes, stock-based compensation, nondeductible officers’ compensation, nondeductible lobbying expenses, and federal tax credits. The effective income tax rate for the three months ended March 31, 2019 includes discrete income tax provision items of $0.5 million relating to the tax detriment on stock-based compensation, which resulted in a 0.3 percent decrease to our effective income tax rate. We anticipate the potential for increased periodic volatility in future effective tax rates from the impact of stock-based compensation tax deductions as they are treated as discrete tax items. The effective income tax rate for the three months ended March 31, 2019 was a 23.7 percent benefit on loss, compared to a 25.8 percent benefit on loss for the three months ended March 31, 2018 . As of March 31, 2019 |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2019 | |
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, 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 our weighted-average basic and diluted shares outstanding: Three Months Ended March 31, 2019 2018 (in thousands) Weighted-average common shares outstanding - basic 66,182 65,957 Weighted-average common shares and equivalents outstanding - diluted 66,182 65,957 We reported a net loss for the three months ended March 31, 2019 and 2018 . As a result, our basic and diluted weighted-average common shares outstanding were the same for those periods because 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 March 31, 2019 2018 (in thousands) Weighted-average common share equivalents excluded from diluted earnings per share due to their anti-dilutive effect: RSUs and PSUs 895 613 Other equity-based awards 302 76 Total anti-dilutive common share equivalents 1,197 689 The 2021 Convertible Notes give the holders, at our election, the right to convert the aggregate principal amount into 2.3 million shares of our common stock at a conversion price of $85.39 per share. The 2021 Convertible Notes could be included in the diluted earnings per share calculation using the treasury stock method if the average market share price exceeds the $85.39 conversion price during the periods presented. During the three months ended March 31, 2019 and 2018 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Three Months Ended March 31, 2019 2018 (1) Supplemental cash flow information: Cash payments for: Interest, net of capitalized interest $ 12,602 $ 12,343 Income taxes — 193 Non-cash investing and financing activities: Change in accounts payable related to capital expenditures $ 14,941 $ 51,093 Change in asset retirement obligations, with a corresponding change to crude oil and natural gas properties, net of disposals 2,794 5,354 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,441 $ — Operating cash flows from finance leases 60 — Financing cash flows from finance leases 494 — ROU assets obtained in exchange for lease obligations: Operating leases $ 481 $ — Finance leases 624 — (1) As we have elected the modified retrospective method of adoption for the New Lease Standard, cash flows related to lease liabilities have not been restated for the three months ended March 31, 2018 |
Subsidiary Guarantor Subsidiary
Subsidiary Guarantor Subsidiary Guarantor (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Subsidiary Guarantor [Abstract] | |
Guarantees [Text Block] | SUBSIDIARY GUARANTOR PDC Permian, Inc., our wholly-owned subsidiary, guarantees our obligations under our publicly-registered senior notes. The following presents the condensed consolidating financial information separately for: (i) PDC Energy, Inc. ("Parent"), the issuer of the guaranteed obligations, including non-material subsidiaries; (ii) PDC Permian, Inc., the guarantor subsidiary ("Guarantor"), as specified in the indentures related to our senior notes; (iii) Eliminations representing adjustments to (a) eliminate intercompany transactions between or among Parent, Guarantor and our other subsidiaries and (b) eliminate the investments in our subsidiaries; and (iv) Parent and subsidiaries on a consolidated basis ("Consolidated"). The Guarantor is 100 percent owned by the Parent. The senior notes are fully and unconditionally guaranteed on a joint and several basis by the Guarantor. The guarantee is subject to release in limited circumstances only upon the occurrence of certain customary conditions. Each entity in the condensed consolidating financial information follows the same accounting policies as described in the notes to the condensed consolidated financial statements. The following condensed consolidating financial statements have been prepared on the same basis of accounting as our condensed consolidated financial statements. Investments in subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate the Parent and Guarantor are reflected in the eliminations column. Condensed Consolidating Balance Sheets March 31, 2019 Parent Guarantor Eliminations Consolidated (in thousands) Current assets: Cash and cash equivalents $ 1,112 $ — $ — $ 1,112 Accounts receivable, net 157,254 33,590 — 190,844 Fair value of derivatives 13,330 — — 13,330 Prepaid expenses and other current assets 6,963 907 — 7,870 Total current assets 178,659 34,497 — 213,156 Properties and equipment, net 2,301,379 1,820,270 — 4,121,649 Assets held-for-sale — 152,847 — 152,847 Intercompany receivable 528,315 — (528,315 ) — Investment in subsidiaries 1,309,187 — (1,309,187 ) — Fair value of derivatives 24,225 — — 24,225 Other assets 44,755 7,296 — 52,051 Total Assets $ 4,386,520 $ 2,014,910 $ (1,837,502 ) $ 4,563,928 Liabilities and Stockholders' Equity Liabilities Current liabilities: Accounts payable $ 110,019 $ 105,536 $ — $ 215,555 Production tax liability 51,558 3,872 — 55,430 Fair value of derivatives 43,899 — — 43,899 Funds held for distribution 75,899 15,716 — 91,615 Accrued interest payable 15,190 4 — 15,194 Other accrued expenses 65,902 2,934 — 68,836 Total current liabilities 362,467 128,062 — 490,529 Intercompany payable — 528,315 (528,315 ) — Long-term debt 1,289,046 — — 1,289,046 Deferred income taxes 127,378 33,231 — 160,609 Asset retirement obligations 75,133 7,364 — 82,497 Liabilities held-for-sale — 4,614 — 4,614 Fair value of derivatives 1,815 — — 1,815 Other liabilities 120,926 4,137 — 125,063 Total liabilities 1,976,765 705,723 (528,315 ) 2,154,173 Commitments and contingent liabilities Stockholders' Equity Common shares 662 — — 662 Additional paid-in capital 2,521,558 1,766,775 (1,766,775 ) 2,521,558 Retained earnings (111,449 ) (457,588 ) 457,588 (111,449 ) Treasury shares (1,016 ) — — (1,016 ) Total stockholders' equity 2,409,755 1,309,187 (1,309,187 ) 2,409,755 Total Liabilities and Stockholders' Equity $ 4,386,520 $ 2,014,910 $ (1,837,502 ) $ 4,563,928 Condensed Consolidating Balance Sheets December 31, 2018 Parent Guarantor Eliminations Consolidated (in thousands) Current assets: Cash and cash equivalents $ 1,398 $ — $ — $ 1,398 Accounts receivable, net 146,529 34,905 — 181,434 Fair value of derivatives 84,492 — — 84,492 Prepaid expenses and other current assets 6,725 411 — 7,136 Total current assets 239,144 35,316 — 274,460 Properties and equipment, net 2,270,711 1,732,151 — 4,002,862 Assets held-for-sale — 140,705 — 140,705 Intercompany receivable 451,601 — (451,601 ) — Investment in subsidiaries 1,316,945 — (1,316,945 ) — Fair value of derivatives 93,722 — — 93,722 Other assets 30,084 2,312 — 32,396 Total Assets $ 4,402,207 $ 1,910,484 $ (1,768,546 ) $ 4,544,145 Liabilities and Stockholders' Equity Liabilities Current liabilities: Accounts payable $ 110,847 $ 71,017 $ — $ 181,864 Production tax liability 53,309 7,410 — 60,719 Fair value of derivatives 3,364 — — 3,364 Funds held for distribution 90,183 15,601 — 105,784 Accrued interest payable 14,143 7 — 14,150 Other accrued expenses 73,689 1,444 — 75,133 Total current liabilities 345,535 95,479 — 441,014 Intercompany payable — 451,601 (451,601 ) — Long-term debt 1,194,876 — — 1,194,876 Deferred income taxes 162,368 35,728 — 198,096 Asset retirement obligations 79,904 5,408 — 85,312 Liabilities held-for-sale — 4,111 — 4,111 Fair value of derivatives 1,364 — — 1,364 Other liabilities 91,452 1,212 — 92,664 Total liabilities 1,875,499 593,539 (451,601 ) 2,017,437 Commitments and contingent liabilities Stockholders' Equity Common shares 661 — — 661 Additional paid-in capital 2,519,423 1,766,775 (1,766,775 ) 2,519,423 Retained earnings 8,727 (449,830 ) 449,830 8,727 Treasury shares (2,103 ) — — (2,103 ) Total stockholders' equity 2,526,708 1,316,945 (1,316,945 ) 2,526,708 Total Liabilities and Stockholders' Equity $ 4,402,207 $ 1,910,484 $ (1,768,546 ) $ 4,544,145 Condensed Consolidating Statements of Operations Three Months Ended March 31, 2019 Parent Guarantor Eliminations Consolidated (in thousands) Revenues Crude oil, natural gas and NGLs sales $ 254,849 $ 66,250 $ — $ 321,099 Commodity price risk management loss, net (190,074 ) — — (190,074 ) Other income 2,633 842 — 3,475 Total revenues 67,408 67,092 — 134,500 Costs, expenses and other Lease operating expenses 23,634 11,587 — 35,221 Production taxes 15,885 6,283 — 22,168 Transportation, gathering and processing expenses 5,440 5,984 — 11,424 Exploration, geologic and geophysical expense 317 2,326 — 2,643 Impairment of properties and equipment — 7,875 — 7,875 General and administrative expense 34,434 5,164 — 39,598 Depreciation, depletion and amortization 112,631 38,791 — 151,422 Accretion of asset retirement obligations 1,378 206 — 1,584 (Gain) loss on sale of properties and equipment (382 ) 13 — (369 ) Other expenses 3,554 — — 3,554 Total costs, expenses and other 196,891 78,229 — 275,120 Loss from operations (129,483 ) (11,137 ) — (140,620 ) Interest expense (17,935 ) 957 — (16,978 ) Interest income 10 — — 10 Loss before income taxes (147,408 ) (10,180 ) — (157,588 ) Income tax benefit 34,991 2,421 — 37,412 Equity in loss of subsidiary (7,759 ) — 7,759 — Net loss $ (120,176 ) $ (7,759 ) $ 7,759 $ (120,176 ) Condensed Consolidating Statements of Operations Three Months Ended March 31, 2018 Parent Guarantor Eliminations Consolidated (in thousands) Revenues Crude oil, natural gas and NGLs sales $ 233,494 $ 71,731 $ — $ 305,225 Commodity price risk management loss, net (47,240 ) — — (47,240 ) Other income 2,516 99 — 2,615 Total revenues 188,770 71,830 — 260,600 Costs, expenses and other Lease operating expenses 21,362 8,274 — 29,636 Production taxes 16,081 4,088 — 20,169 Transportation, gathering and processing expenses 3,231 4,082 — 7,313 Exploration, geologic and geophysical expense 313 2,333 — 2,646 Impairment of properties and equipment 6 33,182 — 33,188 General and administrative expense 31,559 4,137 — 35,696 Depreciation, depletion and amortization 94,376 32,412 — 126,788 Accretion of asset retirement obligations 1,200 88 — 1,288 Gain on sale of properties and equipment 1,432 — — 1,432 Other expenses 2,768 — — 2,768 Total costs, expenses and other 172,328 88,596 — 260,924 Income (loss) from operations 16,442 (16,766 ) — (324 ) Interest expense (18,097 ) 568 — (17,529 ) Interest income 148 — — 148 Loss before income taxes (1,507 ) (16,198 ) — (17,705 ) Income tax benefit 577 3,989 — 4,566 Equity in loss of subsidiary (12,209 ) — 12,209 — Net loss $ (13,139 ) $ (12,209 ) $ 12,209 $ (13,139 ) Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2019 Parent Guarantor Eliminations Consolidated (in thousands) Cash flows from operating activities $ 152,524 $ 29,329 $ — $ 181,853 Cash flows from investing activities: Capital expenditures for development of crude oil and natural gas properties (161,482 ) (105,458 ) — (266,940 ) Capital expenditures for other properties and equipment (4,756 ) (70 ) — (4,826 ) Proceeds from sale of properties and equipment 102 — — 102 Intercompany transfers (76,271 ) — 76,271 — Net cash from investing activities (242,407 ) (105,528 ) 76,271 (271,664 ) Cash flows from financing activities: Proceeds from revolving credit facility 432,000 — — 432,000 Repayment of revolving credit facility (340,500 ) — — (340,500 ) Purchase of treasury stock (1,460 ) — — (1,460 ) Other (443 ) (72 ) — (515 ) Intercompany transfers — 76,271 (76,271 ) — Net cash from financing activities 89,597 76,199 (76,271 ) 89,525 Net change in cash, cash equivalents and restricted cash (286 ) — — (286 ) Cash, cash equivalents and restricted cash, beginning of period 9,399 — — 9,399 Cash, cash equivalents and restricted cash, end of period $ 9,113 $ — $ — $ 9,113 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2018 Parent Guarantor Eliminations Consolidated (in thousands) Cash flows from operating activities $ 149,009 $ 56,140 $ — $ 205,149 Cash flows from investing activities: Capital expenditures for development of crude oil and natural gas properties (97,286 ) (99,631 ) — (196,917 ) Capital expenditures for other properties and equipment (701 ) (365 ) — (1,066 ) Acquisition of crude oil and natural gas properties (180,825 ) — — (180,825 ) Proceeds from sale of properties and equipment 20 — — 20 Proceeds from divestiture 39,023 — — 39,023 Restricted cash 1,249 — — 1,249 Intercompany transfers (43,891 ) — 43,891 — Net cash from investing activities (282,411 ) (99,996 ) 43,891 (338,516 ) Cash flows from financing activities: Proceeds from revolving credit facility 35,000 — — 35,000 Repayment of revolving credit facility (35,000 ) — — (35,000 ) Purchase of treasury stock (2,255 ) — — (2,255 ) Other (344 ) (35 ) — (379 ) Intercompany transfers — 43,891 (43,891 ) — Net cash from financing activities (2,599 ) 43,856 (43,891 ) (2,634 ) Net change in cash, cash equivalents and restricted cash (136,001 ) — — (136,001 ) Cash, cash equivalents and restricted cash, beginning of period 189,925 — — 189,925 Cash, cash equivalents and restricted cash, end of period $ 53,924 $ — $ — $ 53,924 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards In February 2016, the FASB issued an accounting update and subsequent amendments aimed at increasing the transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about related leasing arrangements (the “New Lease Standard”). For leases with terms of more than 12 months, the accounting update requires lessees to recognize a right-of-use ("ROU") asset and lease liability for its right to use the underlying asset and the corresponding lease obligation. As provided by practical expedients, we made accounting policy elections to not recognize ROU assets and lease liabilities that arise from short-term leases and to not separate lease and non-lease components for any class of underlying asset. The FASB issued an accounting update which provides an optional transition practical expedient for the adoption of the New Lease Standard that, if elected, permits an organization to not evaluate the accounting for existing land easements that are not accounted for under the previous lease accounting standard. We elected this practical expedient, and accordingly, existing land easements at December 31, 2018 were not assessed. All new or modified land easements entered into after January 1, 2019 will be evaluated under the New Lease Standard. The New Lease Standard does not apply to leases of mineral rights to explore for or use crude oil and natural gas. Adoption of the New Lease Standard resulted in increases to other assets of $20.1 million , other accrued expenses of $4.6 million and other liabilities of $15.5 million |
Consolidation, Policy | The accompanying unaudited condensed consolidated financial statements include the accounts of PDC, our wholly-owned subsidiaries and our proportionate share of 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 normal recurring adjustments, necessary for a fair statement 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 December 31, 2018 condensed consolidated balance sheet data was derived from audited statements, but does not include all disclosures required by U.S. GAAP. 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 2018 Form 10-K. Our results of operations and cash flows for the three months ended March 31, 2019 |
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, convertible notes and shares held pursuant to our non-employee director deferred compensation plan, if including such potential shares of common stock is dilutive. |
Asset Retirement Obligations As
Asset Retirement Obligations Asset Retirement Obligations (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation [Policy Text Block] | Our estimated asset retirement obligations liability is based on historical experience in plugging and abandoning wells, estimated economic lives and estimated plugging, abandonment and surface reclamation costs considering federal and state regulatory requirements in effect at that time. The liability is discounted using the credit-adjusted risk-free rate estimated at the time the liability is incurred or revised. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligations liability, a corresponding adjustment is made to the properties and equipment balance. Changes in the liability due to the passage of time are recognized as an increase in the carrying amount of the liability and as accretion expense. Short-term asset retirement obligations are included in other accrued expenses on the condensed consolidated balance sheets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | Cash, cash equivalents and restricted cash. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported on the condensed consolidated balance sheets at March 31, 2019 and 2018 and December 31, 2018 and 2017, which sum to the total of cash, cash equivalents and restricted cash in the consolidated statements of cash flows: March 31, 2019 December 31, 2018 March 31, 2018 December 31, 2017 (in thousands) Cash and cash equivalents $ 1,112 $ 1,398 $ 45,923 $ 180,675 Restricted cash 8,001 8,001 8,001 9,250 Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 9,113 $ 9,399 $ 53,924 $ 189,925 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregated Revenue. The following table presents crude oil, natural gas and NGLs sales disaggregated by commodity and operating region for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, Revenue by Commodity and Operating Region 2019 2018 Percent Change Crude oil Wattenberg Field $ 180,426 $ 170,306 5.9 % Delaware Basin 50,657 53,418 (5.2 )% Utica Shale (1) — 2,696 (100.0 )% Total $ 231,083 $ 226,420 2.1 % Natural gas Wattenberg Field $ 46,701 $ 29,772 56.9 % Delaware Basin 5,770 7,679 (24.9 )% Utica Shale (1) — 1,110 (100.0 )% Total $ 52,471 $ 38,561 36.1 % NGLs Wattenberg Field $ 27,722 $ 28,770 (3.6 )% Delaware Basin 9,823 10,635 (7.6 )% Utica Shale (1) — 839 (100.0 )% Total $ 37,545 $ 40,244 (6.7 )% Revenue by Operating Region Wattenberg Field $ 254,849 $ 228,848 11.4 % Delaware Basin 66,250 71,732 (7.6 )% Utica Shale (1) — 4,645 (100.0 )% Total $ 321,099 $ 305,225 5.2 % (1) In March 2018, we completed the disposition of our Utica Shale properties. |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Our crude oil and natural gas fixed-price swaps are included in Level 2. Our collars are included in Level 3. Our basis swaps are included in Level 2 and 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: March 31, 2019 December 31, 2018 Significant Other Significant Total Significant Other Significant Total (in thousands) Total assets $ 21,177 $ 16,378 $ 37,555 $ 118,521 $ 59,693 $ 178,214 Total liabilities (42,326 ) (3,388 ) (45,714 ) (3,364 ) (1,364 ) (4,728 ) Net asset (liability) $ (21,149 ) $ 12,990 $ (8,159 ) $ 115,157 $ 58,329 $ 173,486 |
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 March 31, 2019 2018 (in thousands) Fair value of Level 3 instruments, net asset (liability) beginning of period $ 58,329 $ (9,687 ) Changes in fair value included in condensed consolidated statement of operations line item: Commodity price risk management loss, net (43,520 ) (2,152 ) Settlements included in condensed consolidated statement of operations line items: Commodity price risk management loss, net (1,819 ) 3,006 Fair value of Level 3 instruments, net liability end of period $ 12,990 $ (8,833 ) Net change in fair value of Level 3 unsettled derivatives included in condensed consolidated statement of operations line item: Commodity price risk management loss, net $ (38,680 ) $ 1,205 |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures Fair value of the portion of long-term debt related to senior and convertible notes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | The portion of our long-term debt related to our revolving credit facility 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, we have determined an estimate of the fair values based on measurements of trading activity and broker and/or dealer quotes, respectively, which are published market prices, and therefore are Level 2 inputs. The table below presents these estimates of the fair value of the portion of our long-term debt related to our senior notes and convertible notes as of: As of March 31, 2019 As of December 31, 2018 Estimated Fair Value Percent of Par Estimated Fair Value Percent of Par (in millions) Senior notes: 2021 Convertible Notes $ 188.1 94.1 % $ 175.4 87.7 % 2024 Senior Notes 398.9 99.7 % 370.2 92.5 % 2026 Senior Notes 583.7 97.3 % 532.4 88.7 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative [Line Items] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of March 31, 2019 , we had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. Collars Fixed-Price Swaps Commodity/ Index/ Maturity Period Quantity (Crude oil - MBls Natural Gas - BBtu) Weighted-Average Contract Price Quantity (Crude Oil - MBbls Gas and Basis- BBtu ) Weighted- Average Contract Price Fair Value March 31, 2019 (1) (in thousands) Floors Ceilings Crude Oil NYMEX 2019 2,050 $ 56.22 $ 67.77 6,150 $ 54.25 $ (35,191 ) 2020 3,600 55.00 71.68 5,600 61.55 27,831 2021 — — — 600 57.23 350 Total Crude Oil 5,650 12,350 $ (7,010 ) Natural Gas NYMEX 2019 — $ — $ — 22,746 $ 2.91 $ 2,641 Dominion South 2019 — — — 113 2.56 6 2020 — — — 14 2.54 — Total Natural Gas — 22,873 $ 2,647 Basis Protection - Natural Gas CIG 2019 — $ — $ — 22,683 $ (0.76 ) $ (3,796 ) Total Basis Protection - Natural Gas — 22,683 $ (3,796 ) Commodity Derivatives Fair Value $ (8,159 ) _____________ (1) Approximately 43.6 percent of the fair value of our commodity derivative assets and 7.4 percent of the fair value of our commodity derivative liabilities were measured using significant unobservable inputs (Level 3). |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table presents the balance sheet location and fair value amounts of our derivative instruments on the condensed consolidated balance sheets: Fair Value Derivative Instruments: Condensed Consolidated Balance Sheet Line Item March 31, 2019 December 31, 2018 (in thousands) Derivative assets: Current Commodity derivative contracts Fair value of derivatives $ 13,330 $ 84,492 Non-current Commodity derivative contracts Fair value of derivatives 24,225 93,722 Total derivative assets $ 37,555 $ 178,214 Derivative liabilities: Current Commodity derivative contracts Fair value of derivatives $ 40,103 $ 748 Basis protection derivative contracts Fair value of derivatives 3,796 2,616 43,899 3,364 Non-current Commodity derivative contracts Fair value of derivatives 1,815 1,364 Total derivative liabilities $ 45,714 $ 4,728 The following table presents the impact of our derivative instruments on our condensed consolidated statements of operations: Three Months Ended March 31, Condensed Consolidated Statement of Operations Line Item 2019 2018 (in thousands) Commodity price risk management loss, net Net settlements $ (8,452 ) $ (26,038 ) Net change in fair value of unsettled derivatives (181,622 ) (21,202 ) Total commodity price risk management loss, net $ (190,074 ) $ (47,240 ) |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | The following table reflects the impact of netting agreements on gross derivative assets and liabilities: As of March 31, 2019 Derivative Instruments, Gross Effect of Master Netting Agreements Derivative Instruments, Net (in thousands) Asset derivatives: Derivative instruments, at fair value $ 37,555 $ (27,793 ) $ 9,762 Liability derivatives: Derivative instruments, at fair value $ 45,714 $ (27,793 ) $ 17,921 As of December 31, 2018 Derivative Instruments, Gross Effect of Master Netting Agreements Derivative Instruments, Net (in thousands) Asset derivatives: Derivative instruments, at fair value $ 178,214 $ (3,985 ) $ 174,229 Liability derivatives: Derivative instruments, at fair value $ 4,728 $ (3,985 ) $ 743 |
Properties and Equipment (Table
Properties and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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"): March 31, 2019 December 31, 2018 (in thousands) Properties and equipment, net: Crude oil and natural gas properties Proved $ 5,681,685 $ 5,452,613 Unproved 485,571 492,594 Total crude oil and natural gas properties 6,167,256 5,945,207 Infrastructure and other 59,510 60,612 Land and buildings 12,497 11,243 Construction in progress 404,229 356,095 Properties and equipment, at cost 6,643,492 6,373,157 Accumulated DD&A (2,521,843 ) (2,370,295 ) Properties and equipment, net $ 4,121,649 $ 4,002,862 |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | The following table presents balance sheet data related to assets and liabilities held-for-sale: March 31, 2019 December 31, 2018 (in thousands) Assets Properties and equipment, net $ 150,360 $ 137,448 Other assets 2,487 3,257 Total assets $ 152,847 $ 140,705 Liabilities Asset retirement obligation $ 4,614 $ 4,111 Total liabilities $ 4,614 $ 4,111 |
Impairment of natural gas and crude oil properties | The following table presents impairment charges recorded for crude oil and natural gas properties: Three Months Ended March 31, 2019 2018 (in thousands) Impairment of proved and unproved properties $ 7,875 $ 33,130 Amortization of individually insignificant unproved properties — 58 Impairment of crude oil and natural gas properties $ 7,875 $ 33,188 |
Schedule of Aging of Capitalized Exploratory Well Costs [Table Text Block] | The following table presents the capitalized exploratory well cost pending determination of proved reserves and included in properties and equipment, net on the condensed consolidated balance sheets: March 31, 2019 December 31, 2018 (in thousands, except for number of wells) Beginning balance $ 12,188 $ 15,448 Additions to capitalized exploratory well costs pending the determination of proved reserves 12,853 35,127 Reclassifications to proved properties — (38,387 ) Ending balance $ 25,041 $ 12,188 Number of wells pending determination at period end 2 2 |
Other Accrued Expenses Other _2
Other Accrued Expenses Other Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Accrued Expense, Current [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | The following table presents the components of other accrued expenses as of: March 31, 2019 December 31, 2018 (in thousands) Employee benefits $ 10,188 $ 25,811 Asset retirement obligations 28,798 25,598 Environmental expenses 3,554 3,038 Operating and finance leases 6,645 — Other 19,651 20,686 Other accrued expenses $ 68,836 $ 75,133 |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent [Text Block] | March 31, 2019 December 31, 2018 (in thousands) Production taxes $ 78,805 $ 61,310 Deferred oil gathering credit 22,207 22,710 Operating and finance leases 20,063 — Other 3,988 8,644 Other liabilities $ 125,063 $ 92,664 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following as of: March 31, 2019 December 31, 2018 (in thousands) Senior Notes: 1.125% Convertible Notes due September 2021: Principal amount $ 200,000 $ 200,000 Unamortized discount (20,807 ) (22,766 ) Unamortized debt issuance costs (2,397 ) (2,640 ) Net of unamortized discount and debt issuance costs 176,796 174,594 6.125% Senior Notes due September 2024: Principal amount 400,000 400,000 Unamortized debt issuance costs (5,346 ) (5,590 ) Net of unamortized debt issuance costs 394,654 394,410 5.75% Senior Notes due May 2026: Principal amount 600,000 600,000 Unamortized debt issuance costs (6,404 ) (6,628 ) Net of unamortized debt issuance costs 593,596 593,372 Total senior notes 1,165,046 1,162,376 Revolving Credit Facility: Revolving credit facility due May 2023 124,000 32,500 Total long-term debt, net of unamortized discount and debt issuance costs $ 1,289,046 $ 1,194,876 |
Leases Operating and Financing
Leases Operating and Financing Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The following table presents the components of lease costs: Lease Costs Three Months Ended March 31, 2019 (in thousands) Operating lease costs $ 1,348 Finance lease costs: Amortization of ROU assets $ 483 Interest on lease liabilities 60 Total finance lease costs 543 Short-term lease costs 61,030 Total lease costs $ 62,921 |
Operating and Financing Leases Financial Statement Location [Table Text Block] | The following table presents leases and the balance sheet classification as of: Leases Condensed Consolidated Balance Sheet Line Item March 31, 2019 (in thousands) Operating Leases: Operating lease ROU assets Other assets $ 19,535 Operating lease obligation - short-term Other accrued expense $ 4,958 Operating lease obligation - long-term Other liabilities 17,055 Total operating lease liabilities $ 22,013 Finance Leases: Finance lease ROU assets Properties and equipment, net $ 4,748 Finance lease obligation - short-term Other accrued expense $ 1,687 Finance lease obligation - long-term Other liabilities 3,008 Total finance lease liabilities $ 4,695 Weighted-average remaining lease term (years) Operating leases 3.22 Finance leases 4.53 Weighted-average discount rate Operating leases 5.0 % Finance leases 5.0 % |
Operating and Financing Lease, Liability, Maturity [Table Text Block] | Maturity of lease liabilities by year and in the aggregate, under operating and financing leases with terms of one year or more, consist of the following: Operating Leases Finance Leases Total (in thousands) 2019 $ 4,378 $ 1,431 $ 5,809 2020 5,910 1,716 7,626 2021 5,782 1,101 6,883 2022 4,851 528 5,379 2023 1,394 321 1,715 Thereafter 2,291 6 2,297 Total lease payments 24,606 5,103 29,709 Less interest and discount (2,593 ) (408 ) (3,001 ) Present value of lease liabilities $ 22,013 $ 4,695 $ 26,708 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 interests in crude oil and natural gas properties: Amount (in thousands) Balance at December 31, 2018 $ 115,021 Obligations incurred with development activities 2,807 Accretion expense 1,584 Revisions in estimated cash flows 3,200 Obligations discharged with asset retirements and divestiture (6,703 ) Balance at March 31, 2019 115,909 Liabilities held-for-sale (4,614 ) Current portion (28,798 ) Long-term portion $ 82,497 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contigencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Supply Commitment | The following table presents gross volume information related to our long-term firm transportation, sales and processing agreements for pipeline capacity and water delivery and disposal commitments: For the Twelve Months Ending March 31, Area 2020 2021 2022 2023 2024 and Total Expiration Natural gas (MMcf) Wattenberg Field 26,772 31,025 31,025 31,025 85,290 205,137 April 30, 2026 Delaware Basin 47,150 33,410 16,097 — — 96,657 December 31, 2021 Gas Marketing 7,136 7,117 6,966 2,830 — 24,049 August 31, 2022 Total 81,058 71,552 54,088 33,855 85,290 325,843 Crude oil (MBbls) Wattenberg Field 9,740 6,227 5,475 5,475 450 27,367 April 30, 2023 Delaware Basin 8,227 8,580 8,030 8,030 6,050 38,917 December 31, 2023 Total 17,967 14,807 13,505 13,505 6,500 66,284 Water (MBbls) Wattenberg Field 3,886 6,207 6,207 6,206 10,899 33,405 December 31, 2024 Delaware Basin 3,660 3,650 3,650 3,650 870 15,480 June 26, 2023 Total 7,546 9,857 9,857 9,856 11,769 48,885 Dollar commitment (in thousands) $ 104,504 $ 80,633 $ 73,851 $ 68,882 $ 94,836 $ 422,706 |
Common Stock Common Stock (Tabl
Common Stock Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | 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 March 31, 2019 2018 (in thousands) Stock-based compensation expense $ 4,683 $ 5,261 Income tax benefit (1,120 ) (1,261 ) Stock-based compensation expense, net of tax $ 3,563 $ 4,000 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table presents the changes in non-vested time-based RSUs to all employees, including executive officers, for the three months ended March 31, 2019 : Shares Weighted-Average Non-vested at December 31, 2018 618,407 $ 54.16 Granted 189,137 38.59 Vested (93,685 ) 54.64 Forfeited (12,186 ) 48.38 Non-vested at March 31, 2019 701,673 50.00 The following table presents the weighted-average grant date fair value per share and related information as of/for the periods presented: Three Months Ended March 31, 2019 2018 (in thousands, except per share data) Total intrinsic value of time-based awards vested $ 3,311 $ 3,530 Total intrinsic value of time-based awards non-vested 28,544 26,297 Market price per share as of March 31 40.68 49.03 Weighted-average grant date fair value per share 38.59 50.94 |
Restricted Stock Awards, Market-Based, Valuation assumptions [Table Text Block] | The Compensation Committee awarded a total of 139,197 market-based PSUs to our executive officers during the three months ended March 31, 2019 . In addition to continuous employment, the vesting of these PSUs is contingent on our total stockholder return ("TSR"), which is essentially our stock price change including any dividends over a three-year period ending on December 31, 2021, as compared to the TSR of a group of peer companies over the same period. The PSUs will result in a payout between zero and 200 percent of the target PSUs awarded. The weighted-average grant date fair value per PSU granted was computed using the Monte Carlo pricing model using the following assumptions: Three Months Ended March 31, 2019 2018 Expected term of award (in years) 3 3 Risk-free interest rate 2.5 % 2.4 % Expected volatility 41.4 % 42.3 % |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | The following table presents the change in non-vested market-based awards during the three months ended March 31, 2019 : Shares Weighted-Average Non-vested at December 31, 2018 102,914 $ 74.88 Granted 139,197 56.68 Non-vested at March 31, 2019 242,111 64.42 The following table presents the weighted-average grant date fair value per share and related information as of/for the periods presented: Three Months Ended March 31, 2019 2018 (in thousands, except per share data) Total intrinsic value of market-based awards non-vested $ 9,849 $ 6,815 Market price per common share as of March 31, 40.68 49.03 Weighted-average grant date fair value per share 56.68 69.98 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following table presents our weighted-average basic and diluted shares outstanding: Three Months Ended March 31, 2019 2018 (in thousands) Weighted-average common shares outstanding - basic 66,182 65,957 Weighted-average common shares and equivalents outstanding - diluted 66,182 65,957 |
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 March 31, 2019 2018 (in thousands) Weighted-average common share equivalents excluded from diluted earnings per share due to their anti-dilutive effect: RSUs and PSUs 895 613 Other equity-based awards 302 76 Total anti-dilutive common share equivalents 1,197 689 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Three Months Ended March 31, 2019 2018 (1) Supplemental cash flow information: Cash payments for: Interest, net of capitalized interest $ 12,602 $ 12,343 Income taxes — 193 Non-cash investing and financing activities: Change in accounts payable related to capital expenditures $ 14,941 $ 51,093 Change in asset retirement obligations, with a corresponding change to crude oil and natural gas properties, net of disposals 2,794 5,354 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,441 $ — Operating cash flows from finance leases 60 — Financing cash flows from finance leases 494 — ROU assets obtained in exchange for lease obligations: Operating leases $ 481 $ — Finance leases 624 — (1) As we have elected the modified retrospective method of adoption for the New Lease Standard, cash flows related to lease liabilities have not been restated for the three months ended March 31, 2018 |
Subsidiary Guarantor Subsidia_2
Subsidiary Guarantor Subsidiary Guarantor (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Subsidiary Guarantor [Abstract] | |
Schedule of Guarantor Obligations [Table Text Block] | The following condensed consolidating financial statements have been prepared on the same basis of accounting as our condensed consolidated financial statements. Investments in subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate the Parent and Guarantor are reflected in the eliminations column. Condensed Consolidating Balance Sheets March 31, 2019 Parent Guarantor Eliminations Consolidated (in thousands) Current assets: Cash and cash equivalents $ 1,112 $ — $ — $ 1,112 Accounts receivable, net 157,254 33,590 — 190,844 Fair value of derivatives 13,330 — — 13,330 Prepaid expenses and other current assets 6,963 907 — 7,870 Total current assets 178,659 34,497 — 213,156 Properties and equipment, net 2,301,379 1,820,270 — 4,121,649 Assets held-for-sale — 152,847 — 152,847 Intercompany receivable 528,315 — (528,315 ) — Investment in subsidiaries 1,309,187 — (1,309,187 ) — Fair value of derivatives 24,225 — — 24,225 Other assets 44,755 7,296 — 52,051 Total Assets $ 4,386,520 $ 2,014,910 $ (1,837,502 ) $ 4,563,928 Liabilities and Stockholders' Equity Liabilities Current liabilities: Accounts payable $ 110,019 $ 105,536 $ — $ 215,555 Production tax liability 51,558 3,872 — 55,430 Fair value of derivatives 43,899 — — 43,899 Funds held for distribution 75,899 15,716 — 91,615 Accrued interest payable 15,190 4 — 15,194 Other accrued expenses 65,902 2,934 — 68,836 Total current liabilities 362,467 128,062 — 490,529 Intercompany payable — 528,315 (528,315 ) — Long-term debt 1,289,046 — — 1,289,046 Deferred income taxes 127,378 33,231 — 160,609 Asset retirement obligations 75,133 7,364 — 82,497 Liabilities held-for-sale — 4,614 — 4,614 Fair value of derivatives 1,815 — — 1,815 Other liabilities 120,926 4,137 — 125,063 Total liabilities 1,976,765 705,723 (528,315 ) 2,154,173 Commitments and contingent liabilities Stockholders' Equity Common shares 662 — — 662 Additional paid-in capital 2,521,558 1,766,775 (1,766,775 ) 2,521,558 Retained earnings (111,449 ) (457,588 ) 457,588 (111,449 ) Treasury shares (1,016 ) — — (1,016 ) Total stockholders' equity 2,409,755 1,309,187 (1,309,187 ) 2,409,755 Total Liabilities and Stockholders' Equity $ 4,386,520 $ 2,014,910 $ (1,837,502 ) $ 4,563,928 Condensed Consolidating Balance Sheets December 31, 2018 Parent Guarantor Eliminations Consolidated (in thousands) Current assets: Cash and cash equivalents $ 1,398 $ — $ — $ 1,398 Accounts receivable, net 146,529 34,905 — 181,434 Fair value of derivatives 84,492 — — 84,492 Prepaid expenses and other current assets 6,725 411 — 7,136 Total current assets 239,144 35,316 — 274,460 Properties and equipment, net 2,270,711 1,732,151 — 4,002,862 Assets held-for-sale — 140,705 — 140,705 Intercompany receivable 451,601 — (451,601 ) — Investment in subsidiaries 1,316,945 — (1,316,945 ) — Fair value of derivatives 93,722 — — 93,722 Other assets 30,084 2,312 — 32,396 Total Assets $ 4,402,207 $ 1,910,484 $ (1,768,546 ) $ 4,544,145 Liabilities and Stockholders' Equity Liabilities Current liabilities: Accounts payable $ 110,847 $ 71,017 $ — $ 181,864 Production tax liability 53,309 7,410 — 60,719 Fair value of derivatives 3,364 — — 3,364 Funds held for distribution 90,183 15,601 — 105,784 Accrued interest payable 14,143 7 — 14,150 Other accrued expenses 73,689 1,444 — 75,133 Total current liabilities 345,535 95,479 — 441,014 Intercompany payable — 451,601 (451,601 ) — Long-term debt 1,194,876 — — 1,194,876 Deferred income taxes 162,368 35,728 — 198,096 Asset retirement obligations 79,904 5,408 — 85,312 Liabilities held-for-sale — 4,111 — 4,111 Fair value of derivatives 1,364 — — 1,364 Other liabilities 91,452 1,212 — 92,664 Total liabilities 1,875,499 593,539 (451,601 ) 2,017,437 Commitments and contingent liabilities Stockholders' Equity Common shares 661 — — 661 Additional paid-in capital 2,519,423 1,766,775 (1,766,775 ) 2,519,423 Retained earnings 8,727 (449,830 ) 449,830 8,727 Treasury shares (2,103 ) — — (2,103 ) Total stockholders' equity 2,526,708 1,316,945 (1,316,945 ) 2,526,708 Total Liabilities and Stockholders' Equity $ 4,402,207 $ 1,910,484 $ (1,768,546 ) $ 4,544,145 Condensed Consolidating Statements of Operations Three Months Ended March 31, 2019 Parent Guarantor Eliminations Consolidated (in thousands) Revenues Crude oil, natural gas and NGLs sales $ 254,849 $ 66,250 $ — $ 321,099 Commodity price risk management loss, net (190,074 ) — — (190,074 ) Other income 2,633 842 — 3,475 Total revenues 67,408 67,092 — 134,500 Costs, expenses and other Lease operating expenses 23,634 11,587 — 35,221 Production taxes 15,885 6,283 — 22,168 Transportation, gathering and processing expenses 5,440 5,984 — 11,424 Exploration, geologic and geophysical expense 317 2,326 — 2,643 Impairment of properties and equipment — 7,875 — 7,875 General and administrative expense 34,434 5,164 — 39,598 Depreciation, depletion and amortization 112,631 38,791 — 151,422 Accretion of asset retirement obligations 1,378 206 — 1,584 (Gain) loss on sale of properties and equipment (382 ) 13 — (369 ) Other expenses 3,554 — — 3,554 Total costs, expenses and other 196,891 78,229 — 275,120 Loss from operations (129,483 ) (11,137 ) — (140,620 ) Interest expense (17,935 ) 957 — (16,978 ) Interest income 10 — — 10 Loss before income taxes (147,408 ) (10,180 ) — (157,588 ) Income tax benefit 34,991 2,421 — 37,412 Equity in loss of subsidiary (7,759 ) — 7,759 — Net loss $ (120,176 ) $ (7,759 ) $ 7,759 $ (120,176 ) Condensed Consolidating Statements of Operations Three Months Ended March 31, 2018 Parent Guarantor Eliminations Consolidated (in thousands) Revenues Crude oil, natural gas and NGLs sales $ 233,494 $ 71,731 $ — $ 305,225 Commodity price risk management loss, net (47,240 ) — — (47,240 ) Other income 2,516 99 — 2,615 Total revenues 188,770 71,830 — 260,600 Costs, expenses and other Lease operating expenses 21,362 8,274 — 29,636 Production taxes 16,081 4,088 — 20,169 Transportation, gathering and processing expenses 3,231 4,082 — 7,313 Exploration, geologic and geophysical expense 313 2,333 — 2,646 Impairment of properties and equipment 6 33,182 — 33,188 General and administrative expense 31,559 4,137 — 35,696 Depreciation, depletion and amortization 94,376 32,412 — 126,788 Accretion of asset retirement obligations 1,200 88 — 1,288 Gain on sale of properties and equipment 1,432 — — 1,432 Other expenses 2,768 — — 2,768 Total costs, expenses and other 172,328 88,596 — 260,924 Income (loss) from operations 16,442 (16,766 ) — (324 ) Interest expense (18,097 ) 568 — (17,529 ) Interest income 148 — — 148 Loss before income taxes (1,507 ) (16,198 ) — (17,705 ) Income tax benefit 577 3,989 — 4,566 Equity in loss of subsidiary (12,209 ) — 12,209 — Net loss $ (13,139 ) $ (12,209 ) $ 12,209 $ (13,139 ) Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2019 Parent Guarantor Eliminations Consolidated (in thousands) Cash flows from operating activities $ 152,524 $ 29,329 $ — $ 181,853 Cash flows from investing activities: Capital expenditures for development of crude oil and natural gas properties (161,482 ) (105,458 ) — (266,940 ) Capital expenditures for other properties and equipment (4,756 ) (70 ) — (4,826 ) Proceeds from sale of properties and equipment 102 — — 102 Intercompany transfers (76,271 ) — 76,271 — Net cash from investing activities (242,407 ) (105,528 ) 76,271 (271,664 ) Cash flows from financing activities: Proceeds from revolving credit facility 432,000 — — 432,000 Repayment of revolving credit facility (340,500 ) — — (340,500 ) Purchase of treasury stock (1,460 ) — — (1,460 ) Other (443 ) (72 ) — (515 ) Intercompany transfers — 76,271 (76,271 ) — Net cash from financing activities 89,597 76,199 (76,271 ) 89,525 Net change in cash, cash equivalents and restricted cash (286 ) — — (286 ) Cash, cash equivalents and restricted cash, beginning of period 9,399 — — 9,399 Cash, cash equivalents and restricted cash, end of period $ 9,113 $ — $ — $ 9,113 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2018 Parent Guarantor Eliminations Consolidated (in thousands) Cash flows from operating activities $ 149,009 $ 56,140 $ — $ 205,149 Cash flows from investing activities: Capital expenditures for development of crude oil and natural gas properties (97,286 ) (99,631 ) — (196,917 ) Capital expenditures for other properties and equipment (701 ) (365 ) — (1,066 ) Acquisition of crude oil and natural gas properties (180,825 ) — — (180,825 ) Proceeds from sale of properties and equipment 20 — — 20 Proceeds from divestiture 39,023 — — 39,023 Restricted cash 1,249 — — 1,249 Intercompany transfers (43,891 ) — 43,891 — Net cash from investing activities (282,411 ) (99,996 ) 43,891 (338,516 ) Cash flows from financing activities: Proceeds from revolving credit facility 35,000 — — 35,000 Repayment of revolving credit facility (35,000 ) — — (35,000 ) Purchase of treasury stock (2,255 ) — — (2,255 ) Other (344 ) (35 ) — (379 ) Intercompany transfers — 43,891 (43,891 ) — Net cash from financing activities (2,599 ) 43,856 (43,891 ) (2,634 ) Net change in cash, cash equivalents and restricted cash (136,001 ) — — (136,001 ) Cash, cash equivalents and restricted cash, beginning of period 189,925 — — 189,925 Cash, cash equivalents and restricted cash, end of period $ 53,924 $ — $ — $ 53,924 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Oil and gas producing wells, gross | 2,800 |
Number of Operating Segments | 2 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies New Accounting Standards - Schedule of Impact of Adoption of New Lease Standard (Details) - Adjustments for New Accounting Pronouncement [Member] $ in Millions | Mar. 31, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Other Assets | $ 20.1 |
Other Accrued Expense | 4.6 |
Other Liabilities | $ 15.5 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 1,112 | $ 1,398 | $ 45,923 | $ 180,675 |
Restricted Cash | 8,001 | 8,001 | 8,001 | 9,250 |
Restricted Cash and Cash Equivalents | $ 9,113 | $ 9,399 | $ 53,924 | $ 189,925 |
Revenue Recognition Revenue by
Revenue Recognition Revenue by Commodity and Location (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 321,099 | $ 305,225 |
Revenue year over year percentage change [Line Items] | 5.20% | |
Wattenberg Field | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 254,849 | 228,848 |
Revenue year over year percentage change [Line Items] | 11.40% | |
Delaware Basin | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 66,250 | 71,732 |
Revenue year over year percentage change [Line Items] | (7.60%) | |
Utica Shale [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | 4,645 |
Revenue year over year percentage change [Line Items] | (100.00%) | |
Crude Oil [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 231,083 | 226,420 |
Revenue year over year percentage change [Line Items] | 2.10% | |
Crude Oil [Member] | Wattenberg Field | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 180,426 | 170,306 |
Revenue year over year percentage change [Line Items] | 5.90% | |
Crude Oil [Member] | Delaware Basin | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 50,657 | 53,418 |
Revenue year over year percentage change [Line Items] | (5.20%) | |
Crude Oil [Member] | Utica Shale [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | 2,696 |
Revenue year over year percentage change [Line Items] | (100.00%) | |
Natural Gas [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 52,471 | 38,561 |
Revenue year over year percentage change [Line Items] | 36.10% | |
Natural Gas [Member] | Wattenberg Field | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 46,701 | 29,772 |
Revenue year over year percentage change [Line Items] | 56.90% | |
Natural Gas [Member] | Delaware Basin | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 5,770 | 7,679 |
Revenue year over year percentage change [Line Items] | (24.90%) | |
Natural Gas [Member] | Utica Shale [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | 1,110 |
Revenue year over year percentage change [Line Items] | (100.00%) | |
NGL [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 37,545 | 40,244 |
Revenue year over year percentage change [Line Items] | (6.70%) | |
NGL [Member] | Wattenberg Field | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 27,722 | 28,770 |
Revenue year over year percentage change [Line Items] | (3.60%) | |
NGL [Member] | Delaware Basin | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 9,823 | 10,635 |
Revenue year over year percentage change [Line Items] | (7.60%) | |
NGL [Member] | Utica Shale [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 839 |
Revenue year over year percentage change [Line Items] | (100.00%) |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosures (Details) - Fair Value - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets and Liabilities at Fair Value | ||
Total assets | $ 37,555 | $ 178,214 |
Total liabilities | (45,714) | (4,728) |
Net asset (fair value) | (8,159) | 173,486 |
Significant Other Observable Inputs (Level 2) | ||
Assets and Liabilities at Fair Value | ||
Total assets | 21,177 | 118,521 |
Total liabilities | (42,326) | (3,364) |
Net asset (fair value) | (21,149) | 115,157 |
Significant Unobservable Inputs (Level 3) | ||
Assets and Liabilities at Fair Value | ||
Total assets | 16,378 | 59,693 |
Total liabilities | (3,388) | (1,364) |
Net asset (fair value) | $ 12,990 | $ 58,329 |
Reconciliation of Level 3 Fair
Reconciliation of Level 3 Fair Value Measurements (Details) - Derivative Financial Instrument Net Assets - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Roll-forward of Level 3 Assets | ||
Fair Value, net assets (liabilities), beginning of period | $ 58,329 | $ (9,687) |
Fair Value, net assets (liabilities), end of period | 12,990 | (8,833) |
Commodity Price Risk Management (loss), net | ||
Roll-forward of Level 3 Assets | ||
Changes in fair value included in statement of operations line item: | (43,520) | (2,152) |
Settlements included in statement of operations line items: | (1,819) | 3,006 |
Net change in fair value of unsettled derivatives included in statement of operations line item | $ (38,680) | $ 1,205 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures Notes Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
1.125% Convertible Senior Notes due 2021 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes Payable, Fair Value Disclosure | $ 188.1 | $ 175.4 |
Senior Notes fair value | 94.10% | 87.70% |
5.75% Senior Notes due 2026 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes Payable, Fair Value Disclosure | $ 583.7 | $ 532.4 |
Senior Notes fair value | 97.30% | 88.70% |
6.125% Senior Notes due 2024 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes Payable, Fair Value Disclosure | $ 398.9 | $ 370.2 |
Senior Notes fair value | 99.70% | 92.50% |
Fair Value of Derivative and Ba
Fair Value of Derivative and Balance Sheet Location (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value | ||
Derivative Asset, Fair Value, Gross Asset | $ 37,555 | $ 178,214 |
Derivative Liability, Fair Value, Gross Liability | 45,714 | 4,728 |
Current Liabilities | ||
Derivatives, Fair Value | ||
Fair Value of Derivatives | 3,796 | 2,616 |
Derivative Liability, Fair Value, Gross Liability | 43,899 | 3,364 |
Commodity Contracts Related to Natural Gas and Crude Oil Sales | Current Assets | ||
Derivatives, Fair Value | ||
Fair Value of Derivatives | 13,330 | 84,492 |
Commodity Contracts Related to Natural Gas and Crude Oil Sales | Non Current Assets | ||
Derivatives, Fair Value | ||
Fair Value of Derivatives | 24,225 | 93,722 |
Commodity Contracts Related to Natural Gas and Crude Oil Sales | Current Liabilities | ||
Derivatives, Fair Value | ||
Fair Value of Derivatives | 40,103 | 748 |
Commodity Contracts Related to Natural Gas and Crude Oil Sales | Non Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Liability, Fair Value, Gross Liability | $ 1,815 | $ 1,364 |
Impact of Derivative Instrument
Impact of Derivative Instruments on Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Commodity price risk management loss, net | $ (190,074) | $ (47,240) |
Commodity Price Risk Management (loss), net | ||
Derivative [Line Items] | ||
Commodity price risk management loss, net | (8,452) | (26,038) |
Net change in fair value of unsettled derivatives | (181,622) | (21,202) |
Total commodity price risk management gain (loss), net | $ (190,074) | $ (47,240) |
Derivative Financial Instrume_3
Derivative Financial Instruments Impact of Netting Agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative Asset: | ||
Derivative assets, gross | $ (37,555) | $ (178,214) |
Effect of master netting agreements | 27,793 | 3,985 |
Derivative asset, net | 9,762 | 174,229 |
Derivative Liability: | ||
Derivative liability, gross | 45,714 | 4,728 |
Effect of master netting agreements | (27,793) | (3,985) |
Derivative liability, net | $ 17,921 | $ 743 |
Derivative Financial Instrume_4
Derivative Financial Instruments Outstanding Derivative Contracts (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)MMBTU$ / UnitMBbls | |
Derivative [Line Items] | |
FV Commodity Derivatives Assets measured with Level 3 | 43.60% |
Derivative, Fair Value, Net | $ | $ (8,159) |
FV Commodity Derivatives Liabilities measured with Level 3 | 7.40% |
Natural Gas [Member] | |
Derivative [Line Items] | |
Derivative, Fair Value, Net | $ | $ 2,647 |
Crude Oil [Member] | |
Derivative [Line Items] | |
Derivative, Fair Value, Net | $ | (7,010) |
2019 | Crude Oil [Member] | |
Derivative [Line Items] | |
Derivative, Fair Value, Net | $ | (35,191) |
2020 | Crude Oil [Member] | |
Derivative [Line Items] | |
Derivative, Fair Value, Net | $ | 27,831 |
2021 | Crude Oil [Member] | |
Derivative [Line Items] | |
Derivative, Fair Value, Net | $ | $ 350 |
Dominion South [Member] | Natural Gas [Member] | 2019 | |
Derivative [Line Items] | |
Derivative, Swap Type, Average Fixed Price | 2.56 |
Dominion South [Member] | Natural Gas [Member] | 2020 | |
Derivative [Line Items] | |
Derivative, Swap Type, Average Fixed Price | 2.54 |
CIG [Member] | Natural Gas [Member] | 2019 | |
Derivative [Line Items] | |
Derivative, Swap Type, Average Fixed Price | (0.76) |
CME SWAPS MARKETS (NYMEX) [Member] | Natural Gas [Member] | 2019 | |
Derivative [Line Items] | |
Derivative, Swap Type, Average Fixed Price | 2.91 |
Derivative, Floor Price | 0 |
Derivative, Cap Price | 0 |
CME SWAPS MARKETS (NYMEX) [Member] | Crude Oil [Member] | 2019 | |
Derivative [Line Items] | |
Derivative, Swap Type, Average Fixed Price | 54.25 |
Derivative, Floor Price | 56.22 |
Derivative, Cap Price | 67.77 |
CME SWAPS MARKETS (NYMEX) [Member] | Crude Oil [Member] | 2020 | |
Derivative [Line Items] | |
Derivative, Swap Type, Average Fixed Price | 61.55 |
Derivative, Floor Price | 55 |
Derivative, Cap Price | 71.68 |
CME SWAPS MARKETS (NYMEX) [Member] | Crude Oil [Member] | 2021 | |
Derivative [Line Items] | |
Derivative, Swap Type, Average Fixed Price | 57.23 |
Derivative, Floor Price | 0 |
Derivative, Cap Price | 0 |
Commodity Option [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 0 |
Commodity Option [Member] | Crude Oil [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 5,650 |
Commodity Option [Member] | 2019 | Natural Gas [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 0 |
Commodity Option [Member] | 2019 | Crude Oil [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 2,050 |
Commodity Option [Member] | 2020 | Crude Oil [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 3,600 |
Commodity Option [Member] | 2021 | Crude Oil [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 0 |
CME SWAPS MARKETS (NYMEX) [Member] | 2019 | Natural Gas [Member] | |
Derivative [Line Items] | |
Derivative, Fair Value, Net | $ | $ 2,641 |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 22,746,000 |
Basis Protection Contracts Related to Natural Gas Marketing [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Derivative, Fair Value, Net | $ | $ (3,796) |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 22,683,000 |
Basis Protection - CIG [Member] | 2019 | Natural Gas [Member] | |
Derivative [Line Items] | |
Derivative, Fair Value, Net | $ | $ (3,796) |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 22,683,000 |
Energy Related Derivative [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 22,873,000 |
Energy Related Derivative [Member] | Crude Oil [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 12,350 |
Energy Related Derivative [Member] | 2019 | Crude Oil [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 6,150 |
Energy Related Derivative [Member] | 2020 | Crude Oil [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 5,600 |
Energy Related Derivative [Member] | 2021 | Crude Oil [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 600 |
Dominion South [Member] | 2019 | Natural Gas [Member] | |
Derivative [Line Items] | |
Derivative, Fair Value, Net | $ | $ 6 |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 113,000 |
Dominion South [Member] | 2020 | Natural Gas [Member] | |
Derivative [Line Items] | |
Derivative, Fair Value, Net | $ | $ 0 |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 14,000 |
Properties and Equipment (Detai
Properties and Equipment (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)Wells | Dec. 31, 2018USD ($)Wells | Dec. 31, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Document Period End Date | Mar. 31, 2019 | ||
Reclassification to Well, Facilities, and Equipment Based on Determination of Proved Reserves | $ 0 | $ (38,387) | |
Proved Natural Gas and Crude Oil Properties | 5,681,685 | 5,452,613 | |
Unproved Natural Gas and Crude Oil Properties | 485,571 | 492,594 | |
Total Natural Gas and Crude Oil Properties | 6,167,256 | 5,945,207 | |
Equipment and other | 59,510 | 60,612 | |
Land and Buildings | 12,497 | 11,243 | |
Construction in Progress | 404,229 | 356,095 | |
Properties and equipment, at cost | 6,643,492 | 6,373,157 | |
Accumulated DD&A | (2,521,843) | (2,370,295) | |
Property, Plant and Equipment, Net | 4,121,649 | 4,002,862 | |
Capitalized Exploratory Well Cost, Additions Pending Determination of Proved Reserves | 12,853 | 35,127 | |
Capitalized Exploratory Well Costs | $ 25,041 | $ 12,188 | $ 15,448 |
Wells to be completed | Wells | 2 | 2 |
Impairment of Natural Gas and C
Impairment of Natural Gas and Crude Oil Properties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Impairment of natural gas and crude oil properties [Line Items] | ||
Document Period End Date | Mar. 31, 2019 | |
Impairment of properties and equipment | $ 26,900 | |
Impairment of Leasehold | $ 7,875 | 33,130 |
Amortization of Individually Insignificant Unproved Properties | 0 | 58 |
Impairment of Oil and Gas Properties | 33,188 | |
Delaware Basin Unproved Property Impairment | $ 6,300 | |
Delaware Basin | ||
Impairment of natural gas and crude oil properties [Line Items] | ||
Impairment of Oil and Gas Properties | $ 7,900 |
Properties and Equipment Assets
Properties and Equipment Assets Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Long Lived Assets Held-for-sale [Line Items] | |||
Document Period End Date | Mar. 31, 2019 | ||
Impairment of properties and equipment | $ 7,875 | $ 33,188 | |
(Gain) loss on sale of properties and equipment | (369) | 1,432 | |
Assets | 4,563,928 | $ 4,544,145 | |
Asset retirement obligations | 82,497 | 85,312 | |
Liabilities | 2,154,173 | 2,017,437 | |
Proceeds from sale of properties and equipment | 102 | $ 20 | |
Property, Plant and Equipment, Gross | 6,643,492 | 6,373,157 | |
Midstream [Member] [Member] | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Assets | 152,847 | ||
Asset retirement obligations | 4,614 | ||
Liabilities | 4,614 | ||
Property, Plant and Equipment, Gross | 150,360 | ||
Assets Held-for-sale, Not Part of Disposal Group, Other | $ 2,487 | 3,257 | |
Utica Shale [Member] | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Assets | 140,705 | ||
Asset retirement obligations | 4,111 | ||
Liabilities | 4,111 | ||
Property, Plant and Equipment, Gross | $ 137,448 |
Other Accrued Expenses Other _3
Other Accrued Expenses Other Accrued Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Schedule of Other Liabilities [Line Items] | |||
Amortization of Other Deferred Charges | $ 500 | $ 400 | |
Production Tax Liability | 78,805 | $ 61,310 | |
Operating and Finance Lease Liability, Noncurrent | 20,063 | 0 | |
Other Accrued Liabilities, Noncurrent | $ 125,063 | 92,664 | |
Document Period End Date | Mar. 31, 2019 | ||
Non Current Liabilities | |||
Schedule of Other Liabilities [Line Items] | |||
Increase (Decrease) in Accrued Cost of Oil and Gas Reclamation | $ 22,207 | 22,710 | |
Other Accrued Liabilities | 3,988 | 8,644 | |
Current Liabilities | |||
Schedule of Other Liabilities [Line Items] | |||
Other Accrued Liabilities | $ 19,651 | $ 20,686 |
Other Accrued Expenses Schedule
Other Accrued Expenses Schedule of Other Accrued Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of Other Accrued Expense [Line Items] | ||
Document Period End Date | Mar. 31, 2019 | |
Accrued Employee Benefits, Current | $ 10,188 | $ 25,811 |
Asset Retirement Obligation, Current | 28,798 | 25,598 |
Accrued Environmental Loss Contingencies, Current | 3,554 | 3,038 |
Operating and Finance Lease Liability, Current | 6,645 | 0 |
Other accrued expenses | 68,836 | 75,133 |
Current Liabilities | ||
Schedule of Other Accrued Expense [Line Items] | ||
Other Accrued Liabilities | 19,651 | 20,686 |
Non Current Liabilities | ||
Schedule of Other Accrued Expense [Line Items] | ||
Other Accrued Liabilities | $ 3,988 | $ 8,644 |
Schedule of Long-Term Debt (Det
Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Nov. 14, 2017 | Sep. 14, 2016 | |
Debt Instrument | ||||
Document Period End Date | Mar. 31, 2019 | |||
Total senior notes | $ 1,165,046 | $ 1,162,376 | ||
Total debt, net of discount and unamortized debt issuance costs | 1,289,046 | 1,194,876 | ||
Long-term debt | 1,289,046 | 1,194,876 | ||
1.125% Convertible Senior Notes due 2021 [Member] | ||||
Debt Instrument | ||||
Principal amount | 200,000 | 200,000 | ||
Unamortized Discount | (20,807) | (22,766) | ||
Unamortized Debt Issuance Expense | (2,397) | (2,640) | $ (4,800) | |
Convertible senior notes net of discount | 176,796 | 174,594 | ||
5.75% Senior Notes due 2026 [Member] | ||||
Debt Instrument | ||||
Unamortized Debt Issuance Expense | (6,404) | (6,628) | ||
Principal amount | 600,000 | 600,000 | ||
Senior notes, net of unamortized debt issuance costs | 593,596 | 593,372 | ||
6.125% Senior Notes due 2024 [Member] | ||||
Debt Instrument | ||||
Unamortized Debt Issuance Expense | (5,346) | (5,590) | $ (7,800) | |
Principal amount | 400,000 | 400,000 | ||
Senior notes, net of unamortized debt issuance costs | 394,654 | 394,410 | ||
Revolving Credit Facility | ||||
Debt Instrument | ||||
Revolving credit facility | $ 124,000 | $ 32,500 | ||
5.75% Senior Notes due 2026 [Member] | ||||
Debt Instrument | ||||
Principal amount | $ 7,600 |
Long-Term Debt Additional Infor
Long-Term Debt Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Nov. 14, 2017 | Sep. 14, 2016 | |
Debt Instrument | ||||
Convertible Note, Conversion Price | $ 85.39 | |||
Document Period End Date | Mar. 31, 2019 | |||
Line of Credit Facility, Initial Borrowing Base | $ 1,300,000 | |||
Debt Issuance Costs, Line of Credit Arrangements, Net | $ 10,900 | $ 11,500 | ||
Line of Credit Facility, Weighted Average Interest Rate | 4.50% | |||
5.75% Senior Notes due 2026 [Member] | ||||
Debt Instrument | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |||
Debt Instrument, Frequency of Periodic Payment | semi-annually | |||
1.125% Convertible Senior Notes due 2021 [Member] | ||||
Debt Instrument | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.125% | |||
Debt Instrument, Frequency of Periodic Payment | semi-annually | |||
6.125% Senior Notes due 2024 [Member] | ||||
Debt Instrument | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | |||
Debt Instrument, Frequency of Periodic Payment | semi-annually | |||
5.75% Senior Notes due 2026 [Member] | ||||
Debt Instrument | ||||
Unamortized Debt Issuance Expense | $ (6,404) | (6,628) | ||
Senior Notes ($) | 600,000 | 600,000 | ||
5.75% Senior Notes due 2026 [Member] | ||||
Debt Instrument | ||||
Senior Notes ($) | $ 7,600 | |||
Maximum Borrowing Base [Member] | Revolving Credit Facility | ||||
Debt Instrument | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,500,000 | |||
Revolving Credit Facility | ||||
Debt Instrument | ||||
Long-term Line of Credit | 124,000 | 32,500 | ||
1.125% Convertible Senior Notes due 2021 [Member] | ||||
Debt Instrument | ||||
Convertible senior notes fair value | $ 200,000 | 200,000 | ||
Convertible Note, Conversion Price | $ 85.39 | |||
Liability component of gross proceeds of Convertible Notes | $ 160,500 | |||
Unamortized Debt Issuance Expense | (2,397) | (2,640) | $ (4,800) | |
6.125% Senior Notes due 2024 [Member] | ||||
Debt Instrument | ||||
Unamortized Debt Issuance Expense | (5,346) | (5,590) | $ (7,800) | |
Senior Notes ($) | $ 400,000 | $ 400,000 | ||
Alternate Base Rate Option [Member] | ||||
Debt Instrument | ||||
Line of Credit Facility, Interest Rate at Period End | 0.25% | |||
LIBOR Option [Member] | ||||
Debt Instrument | ||||
Line of Credit Facility, Interest Rate at Period End | 1.25% | |||
Unused Commitment Fee [Member] | ||||
Debt Instrument | ||||
Line of Credit Facility, Interest Rate at Period End | 0.375% |
Leases Leases - Narrative (Deta
Leases Leases - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Operating and Financing Lease Renewal Term | 1 year |
Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Operating and Financing Lease Renewal Term | 5 years |
Leases Leases - Lease Cost (Det
Leases Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lease, Cost [Abstract] | ||
Operating lease costs | $ 1,348 | |
Finance Lease, Right-of-Use Asset, Amortization | 483 | |
Finance Lease, Interest Payment on Liability | 60 | $ 0 |
Total finance lease costs | 543 | |
Short-term lease costs | 61,030 | |
Total lease costs | $ 62,921 |
Leases Leases - Lease Assets an
Leases Leases - Lease Assets and Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($)Rate |
Assets and Liabilities, Lessee [Abstract] | |
Operating lease ROU assets | $ 19,535 |
Operating lease obligation - short-term | 4,958 |
Operating lease obligation - long-term | 17,055 |
Operating Lease, Liability | 22,013 |
Finance lease ROU assets | 4,748 |
Finance lease obligation - short-term | 1,687 |
Finance lease obligation - long-term | 3,008 |
Finance Lease, Liability | $ 4,695 |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 2 months 19 days |
Finance Lease, Weighted Average Remaining Lease Term | 4 years 6 months 10 days |
Operating Lease, Weighted Average Discount Rate, Percent | Rate | 5.00% |
Finance Lease, Weighted Average Discount Rate, Percent | Rate | 5.00% |
Leases Leases - Maturity of Lea
Leases Leases - Maturity of Lease Liabilities Operating (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 4,378 |
2020 | 5,910 |
2021 | 5,782 |
2022 | 4,851 |
2023 | 1,394 |
Thereafter | 2,291 |
Total Operating Lease Payments | 24,606 |
Less interest and discount operating, total | (2,593) |
Operating Lease, Liability | $ 22,013 |
Leases Leases - Maturity of L_2
Leases Leases - Maturity of Lease Liabilities Financing (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 1,431 |
2020 | 1,716 |
2021 | 1,101 |
2022 | 528 |
2023 | 321 |
Thereafter | 6 |
Total Financing Lease Payments | 5,103 |
Less interest and discount financing, total | (408) |
Finance Lease, Liability | $ 4,695 |
Leases Leases - Maturity of L_3
Leases Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating and Financing Lease Liabilities, Payments, Rolling Maturity [Abstract] | |
2019 | $ 5,809 |
2020 | 7,626 |
2021 | 6,883 |
2022 | 5,379 |
2023 | 1,715 |
Thereafter | 2,297 |
Total Lease Payments | 29,709 |
Less interest and discount, total | (3,001) |
Present value of lease liabilities | $ 26,708 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Reconciliation Of Changes In Asset Retirement Obligations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Other Liabilities | $ 4,614 | ||
Asset Retirement Obligation, Roll Forward Analysis | |||
Balance at beginning of period | 115,021 | ||
Obligations incurred with development activities | 2,807 | ||
Accretion expense | 1,584 | $ 1,288 | |
Asset Retirement Obligation, Revision of Estimate | 3,200 | ||
Obligations discharged asset retirements | (6,703) | ||
Balance end of period | 115,909 | ||
Less current portion | (28,798) | $ (25,598) | |
Asset retirement obligations | $ 82,497 | $ 85,312 |
Commitments and Contingencies_2
Commitments and Contingencies Commitments and Contigencies (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)MMcfbblMBbls | |
Supply Commitment | |
Dollar Commitment ($ in thousands) | $ | $ 422,706 |
First Year Commitment [Member] | |
Supply Commitment | |
Dollar Commitment ($ in thousands) | $ | 104,504 |
Second Year Commitment [Member] | |
Supply Commitment | |
Dollar Commitment ($ in thousands) | $ | 80,633 |
Third Year Commitment [Member] | |
Supply Commitment | |
Dollar Commitment ($ in thousands) | $ | 73,851 |
Fourth Year Commitment [Member] | |
Supply Commitment | |
Dollar Commitment ($ in thousands) | $ | 68,882 |
commitments 5 years and beyond [Member] | |
Supply Commitment | |
Dollar Commitment ($ in thousands) | $ | $ 94,836 |
First facilities agreement with midstream provider [Member] | |
Supply Commitment | |
incremental volume commitment | 51.5 |
Second facilities agreement with midstream provider [Member] | |
Supply Commitment | |
incremental volume commitment | 33.5 |
Natural Gas (MMcf) [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 325,843 |
Natural Gas (MMcf) [Member] | Appalachiain Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 24,049 |
Natural Gas (MMcf) [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 205,137 |
Natural Gas (MMcf) [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 96,657 |
Natural Gas (MMcf) [Member] | First Year Commitment [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 81,058 |
Natural Gas (MMcf) [Member] | First Year Commitment [Member] | Appalachiain Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 7,136 |
Natural Gas (MMcf) [Member] | First Year Commitment [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 26,772 |
Natural Gas (MMcf) [Member] | First Year Commitment [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 47,150 |
Natural Gas (MMcf) [Member] | Second Year Commitment [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 71,552 |
Natural Gas (MMcf) [Member] | Second Year Commitment [Member] | Appalachiain Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 7,117 |
Natural Gas (MMcf) [Member] | Second Year Commitment [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 31,025 |
Natural Gas (MMcf) [Member] | Second Year Commitment [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 33,410 |
Natural Gas (MMcf) [Member] | Third Year Commitment [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 54,088 |
Natural Gas (MMcf) [Member] | Third Year Commitment [Member] | Appalachiain Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 6,966 |
Natural Gas (MMcf) [Member] | Third Year Commitment [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 31,025 |
Natural Gas (MMcf) [Member] | Third Year Commitment [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 16,097 |
Natural Gas (MMcf) [Member] | Fourth Year Commitment [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 33,855 |
Natural Gas (MMcf) [Member] | Fourth Year Commitment [Member] | Appalachiain Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 2,830 |
Natural Gas (MMcf) [Member] | Fourth Year Commitment [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 31,025 |
Natural Gas (MMcf) [Member] | Fourth Year Commitment [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 0 |
Natural Gas (MMcf) [Member] | commitments 5 years and beyond [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 85,290 |
Natural Gas (MMcf) [Member] | commitments 5 years and beyond [Member] | Appalachiain Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 0 |
Natural Gas (MMcf) [Member] | commitments 5 years and beyond [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 85,290 |
Natural Gas (MMcf) [Member] | commitments 5 years and beyond [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 0 |
Natural Gas (MMcf) [Member] | Supply Contract Expiration Date [Member] | Appalachiain Basin | |
Supply Commitment | |
Supply Commitments Contract Expiration Date | Aug. 31, 2022 |
Natural Gas (MMcf) [Member] | Supply Contract Expiration Date [Member] | Wattenberg Field | |
Supply Commitment | |
Supply Commitments Contract Expiration Date | Apr. 30, 2026 |
Natural Gas (MMcf) [Member] | Supply Contract Expiration Date [Member] | Delaware Basin | |
Supply Commitment | |
Supply Commitments Contract Expiration Date | Dec. 31, 2021 |
Crude Oil (MBbls) [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 66,284 |
Crude Oil (MBbls) [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 27,367 |
Crude Oil (MBbls) [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 38,917 |
Crude Oil (MBbls) [Member] | First Year Commitment [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 17,967 |
Crude Oil (MBbls) [Member] | First Year Commitment [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 9,740 |
Crude Oil (MBbls) [Member] | First Year Commitment [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 8,227 |
Crude Oil (MBbls) [Member] | Second Year Commitment [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 14,807 |
Crude Oil (MBbls) [Member] | Second Year Commitment [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 6,227 |
Crude Oil (MBbls) [Member] | Second Year Commitment [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 8,580 |
Crude Oil (MBbls) [Member] | Third Year Commitment [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 13,505 |
Crude Oil (MBbls) [Member] | Third Year Commitment [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 5,475 |
Crude Oil (MBbls) [Member] | Third Year Commitment [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 8,030 |
Crude Oil (MBbls) [Member] | Fourth Year Commitment [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 13,505 |
Crude Oil (MBbls) [Member] | Fourth Year Commitment [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 5,475 |
Crude Oil (MBbls) [Member] | Fourth Year Commitment [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 8,030 |
Crude Oil (MBbls) [Member] | commitments 5 years and beyond [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 6,500 |
Crude Oil (MBbls) [Member] | commitments 5 years and beyond [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 450 |
Crude Oil (MBbls) [Member] | commitments 5 years and beyond [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 6,050 |
Crude Oil (MBbls) [Member] | Supply Contract Expiration Date [Member] | Wattenberg Field | |
Supply Commitment | |
Supply Commitments Contract Expiration Date | Apr. 30, 2023 |
Crude Oil (MBbls) [Member] | Supply Contract Expiration Date [Member] | Delaware Basin | |
Supply Commitment | |
Supply Commitments Contract Expiration Date | Dec. 31, 2023 |
Water (MBbls) [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 48,885 |
Water (MBbls) [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 33,405 |
Water (MBbls) [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 15,480 |
Water (MBbls) [Member] | First Year Commitment [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 7,546 |
Water (MBbls) [Member] | First Year Commitment [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 3,886 |
Water (MBbls) [Member] | First Year Commitment [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 3,660 |
Water (MBbls) [Member] | Second Year Commitment [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 9,857 |
Water (MBbls) [Member] | Second Year Commitment [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 6,207 |
Water (MBbls) [Member] | Second Year Commitment [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 3,650 |
Water (MBbls) [Member] | Third Year Commitment [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 9,857 |
Water (MBbls) [Member] | Third Year Commitment [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 6,207 |
Water (MBbls) [Member] | Third Year Commitment [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 3,650 |
Water (MBbls) [Member] | Fourth Year Commitment [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 9,856 |
Water (MBbls) [Member] | Fourth Year Commitment [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 6,206 |
Water (MBbls) [Member] | Fourth Year Commitment [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 3,650 |
Water (MBbls) [Member] | commitments 5 years and beyond [Member] | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | 11,769 |
Water (MBbls) [Member] | commitments 5 years and beyond [Member] | Wattenberg Field | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 10,899 |
Water (MBbls) [Member] | commitments 5 years and beyond [Member] | Delaware Basin | |
Supply Commitment | |
Oil and Gas Delivery Commitments Volumes | MBbls | 870 |
Water (MBbls) [Member] | Supply Contract Expiration Date [Member] | Wattenberg Field | |
Supply Commitment | |
Supply Commitments Contract Expiration Date | Dec. 31, 2024 |
Water (MBbls) [Member] | Supply Contract Expiration Date [Member] | Delaware Basin | |
Supply Commitment | |
Supply Commitments Contract Expiration Date | Jun. 26, 2023 |
Minimum [Member] | Delaware Basin | |
Supply Commitment | |
Committed Barrels of Crude Oil per day | bbl | 17,200 |
Maximum [Member] | Delaware Basin | |
Supply Commitment | |
Committed Barrels of Crude Oil per day | bbl | 26,400 |
Commitments and Contingencies A
Commitments and Contingencies Additional information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)MMcf | Mar. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | ||
Document Period End Date | Mar. 31, 2019 | |
First facilities agreement with midstream provider [Member] | ||
Loss Contingencies [Line Items] | ||
incremental volume commitment | MMcf | 51.5 | |
Delaware Basin/Wattenberg Field [Member] | ||
Loss Contingencies [Line Items] | ||
Transportation netted against Revenue | $ | $ 10.9 | $ 2.6 |
Commitments and Contingencies N
Commitments and Contingencies New Plant (Details) | 3 Months Ended |
Mar. 31, 2019MMcf | |
Natural Gas (MMcf) [Member] | |
Property, Plant and Equipment [Line Items] | |
Qualitative and Quantitative Information, Transferor's Continuing Involvement, Third Party Commitments | 200 |
Commitments and Contingencies_3
Commitments and Contingencies Clean Air Act (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Supplemental environmental legal expense paid | $ 1.5 |
Supplemental environment projects legal expense | 1 |
Injunctive relief legal expense accrual | 18 |
Mitigation legal expense accrual | $ 1.7 |
Common Stock Common Stock (Deta
Common Stock Common Stock (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Document Period End Date | Mar. 31, 2019 |
Common Stock Stock Based Compen
Common Stock Stock Based Compensation Narrative (Details) | Mar. 31, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 1,800,000 |
2018 Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares remain avaliable for issuance | 1,772,088 |
2010 Long-Term Equity Compensation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares remain avaliable for issuance | 37,703 |
Common Stock Stock Based Comp_2
Common Stock Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 4,683 | $ 5,261 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 1,120 | 1,261 |
Allocated Share-based Compensation Expense, Net of Tax | $ 3,563 | $ 4,000 |
Common Stock COMMON STOCK Restr
Common Stock COMMON STOCK Restricted Stock - Time Based Awards (Details) - Restricted stock - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | The fair value of the time-based RSUs is amortized ratably over the requisite service period, primarily three years. The time-based RSUs generally vest ratably on each anniversary following the grant date provided that a participant is continuously employed. | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 701,673 | 618,407 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 50 | $ 54.16 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 189,137 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 38.59 | $ 50.94 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 93,685 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 54.64 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 12,186 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 48.38 | ||
Total intrinsic value of time based awards vested | $ 3,311 | $ 3,530 | |
Aggregate intrinsic value of non-vested awards | $ 28,544 | $ 26,297 | |
Share Price | $ 40.68 | $ 49.03 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 23,800 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days |
Common Stock COMMON STOCK Res_2
Common Stock COMMON STOCK Restricted Stock - Market Based Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance Shares Payout Range | 0.00% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance Shares Payout Range | 200.00% | ||
Restricted Stock - Market Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | The fair value of the market-based PSUs 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 three 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. | ||
Market based performance shares granted to executives | 139,197 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.50% | 2.40% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 41.40% | 42.30% | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 242,111 | 102,914 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 139,197 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 64.42 | $ 74.88 | |
Aggregate intrinsic value of non-vested awards | $ 9,849 | $ 6,815 | |
Share Price | $ 40.68 | $ 49.03 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 56.68 | $ 69.98 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 11,600 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months 12 days |
Common Stock COMMON STOCK Stock
Common Stock COMMON STOCK Stock Appreciation Rights (Details) - Stock Appreciation Rights (SARs) [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.4 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 9 months 18 days |
Common Stock Preferred Stock (D
Common Stock Preferred Stock (Details) - shares | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 23, 2008 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | |
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Preferred Stock, Shares Authorized | 50,000,000 | ||
Preferred Stock, Shares Issued | 0 |
Common Stock Stock Repurchase (
Common Stock Stock Repurchase (Details) - Subsequent Event [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Apr. 30, 2019 |
Subsequent Event [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 200 | |
Stock Repurchase Program Expiration Date | Dec. 31, 2020 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Other Tax Expense (Benefit) | $ 0.5 | |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 0.30% | |
Effective Income Tax Rate, Continuing Operations | 23.70% | 25.80% |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reconciliation of Weighted-Average Diluted Shares Outstanding | ||
Weighted average common shares outstanding - basic | 66,182,000 | 65,957,000 |
Pro Forma Weighted Average Shares Outstanding, Diluted | 66,182,000 | 65,957,000 |
Anti-dilutive Effect | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,197,000 | 689,000 |
Convertible Senior Note | ||
Convertible Note, Shares To Be Received Upon Conversion (in thousands) | 2,300,000 | |
Convertible Note, Conversion Price | $ 85.39 | |
Restricted stock | ||
Anti-dilutive Effect | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 895,000 | 613,000 |
Other equity-based awards | ||
Anti-dilutive Effect | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 302,000 | 76,000 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest, net of capitalized interest | $ 12,602 | $ 12,343 |
Income taxes | 0 | 193 |
Change in accounts payable related to purchases of properties and equipment | 14,941 | 51,093 |
Change in asset retirement obligation, with a corresponding change to crude oil and natural gas properties, net of disposals | 2,794 | 5,354 |
Operating Lease, Payments | 1,441 | 0 |
Finance Lease, Interest Payment on Liability | 60 | 0 |
Finance Lease, Principal Payments | 494 | 0 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 481 | 0 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 624 | $ 0 |
Subsidiary Guarantor Condensed
Subsidiary Guarantor Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | $ 1,112 | $ 1,398 | $ 45,923 | $ 180,675 |
Accounts receivable, net | 190,844 | 181,434 | ||
Fair value of derivatives | 13,330 | 84,492 | ||
Prepaid expenses and other current assets | 7,870 | 7,136 | ||
Total current assets | 213,156 | 274,460 | ||
Properties and equipment, net | 4,121,649 | 4,002,862 | ||
Assets held-for-sale, net | 152,847 | 140,705 | ||
Intercompany Receivables | 0 | 0 | ||
Investments in Affiliates, Subsidiaries, Associates, and Joint Ventures, Fair Value Disclosure | 0 | 0 | ||
Derivative Instruments and Hedges, Noncurrent | 24,225 | 93,722 | ||
Other assets | 52,051 | 32,396 | ||
Total Assets | 4,563,928 | 4,544,145 | ||
Accounts payable | 215,555 | 181,864 | ||
Production tax liability | 55,430 | 60,719 | ||
Fair value of derivatives | 43,899 | 3,364 | ||
Funds held for distribution | 91,615 | 105,784 | ||
Accrued interest payable | 15,194 | 14,150 | ||
Other accrued expenses | 68,836 | 75,133 | ||
Total current liabilities | 490,529 | 441,014 | ||
Intercompany Payable | 0 | 0 | ||
Long-term debt | 1,289,046 | 1,194,876 | ||
Deferred income taxes | 160,609 | 198,096 | ||
Asset retirement obligations | 82,497 | 85,312 | ||
Liabilities held for sale | 4,614 | 4,111 | ||
Fair value of derivatives | 1,815 | 1,364 | ||
Other liabilities | 125,063 | 92,664 | ||
Total liabilities | 2,154,173 | 2,017,437 | ||
Common shares - par value $0.01 per share, 150,000,000 authorized, 66,196,863 and 66,148,609 issued as of March 31, 2019 and December 31, 2018, respectively | 662 | 661 | ||
Additional paid-in capital | 2,521,558 | 2,519,423 | ||
Retained earnings (deficit) | (111,449) | 8,727 | ||
Treasury Stock, Value | 1,016 | 2,103 | ||
Total stockholders' equity | 2,409,755 | 2,526,708 | ||
Total Liabilities and Stockholders' Equity | 4,563,928 | 4,544,145 | ||
Corporate, Non-Segment [Member] | ||||
Cash and cash equivalents | 1,112 | 1,398 | ||
Accounts receivable, net | 157,254 | 146,529 | ||
Fair value of derivatives | 13,330 | 84,492 | ||
Prepaid expenses and other current assets | 6,963 | 6,725 | ||
Total current assets | 178,659 | 239,144 | ||
Properties and equipment, net | 2,301,379 | 2,270,711 | ||
Assets held-for-sale, net | 0 | 0 | ||
Intercompany Receivables | 528,315 | 451,601 | ||
Investments in Affiliates, Subsidiaries, Associates, and Joint Ventures, Fair Value Disclosure | 1,309,187 | 1,316,945 | ||
Derivative Instruments and Hedges, Noncurrent | 24,225 | 93,722 | ||
Other assets | 44,755 | 30,084 | ||
Total Assets | 4,386,520 | 4,402,207 | ||
Accounts payable | 110,019 | 110,847 | ||
Production tax liability | 51,558 | 53,309 | ||
Fair value of derivatives | 43,899 | 3,364 | ||
Funds held for distribution | 75,899 | 90,183 | ||
Accrued interest payable | 15,190 | 14,143 | ||
Other accrued expenses | 65,902 | 73,689 | ||
Total current liabilities | 362,467 | 345,535 | ||
Intercompany Payable | 0 | 0 | ||
Long-term debt | 1,289,046 | 1,194,876 | ||
Deferred income taxes | 127,378 | 162,368 | ||
Asset retirement obligations | 75,133 | 79,904 | ||
Liabilities held for sale | 0 | 0 | ||
Fair value of derivatives | 1,815 | 1,364 | ||
Other liabilities | 120,926 | 91,452 | ||
Total liabilities | 1,976,765 | 1,875,499 | ||
Common shares - par value $0.01 per share, 150,000,000 authorized, 66,196,863 and 66,148,609 issued as of March 31, 2019 and December 31, 2018, respectively | 662 | 661 | ||
Additional paid-in capital | 2,521,558 | 2,519,423 | ||
Retained earnings (deficit) | (111,449) | 8,727 | ||
Treasury Stock, Value | 1,016 | 2,103 | ||
Total stockholders' equity | 2,409,755 | 2,526,708 | ||
Total Liabilities and Stockholders' Equity | 4,386,520 | 4,402,207 | ||
Reportable Legal Entities [Member] | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 33,590 | 34,905 | ||
Fair value of derivatives | 0 | 0 | ||
Prepaid expenses and other current assets | 907 | 411 | ||
Total current assets | 34,497 | 35,316 | ||
Properties and equipment, net | 1,820,270 | 1,732,151 | ||
Assets held-for-sale, net | 152,847 | 140,705 | ||
Intercompany Receivables | 0 | 0 | ||
Investments in Affiliates, Subsidiaries, Associates, and Joint Ventures, Fair Value Disclosure | 0 | 0 | ||
Derivative Instruments and Hedges, Noncurrent | 0 | 0 | ||
Other assets | 7,296 | 2,312 | ||
Total Assets | 2,014,910 | 1,910,484 | ||
Accounts payable | 105,536 | 71,017 | ||
Production tax liability | 3,872 | 7,410 | ||
Fair value of derivatives | 0 | 0 | ||
Funds held for distribution | 15,716 | 15,601 | ||
Accrued interest payable | 4 | 7 | ||
Other accrued expenses | 2,934 | 1,444 | ||
Total current liabilities | 128,062 | 95,479 | ||
Intercompany Payable | 528,315 | 451,601 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 33,231 | 35,728 | ||
Asset retirement obligations | 7,364 | 5,408 | ||
Liabilities held for sale | 4,614 | 4,111 | ||
Fair value of derivatives | 0 | 0 | ||
Other liabilities | 4,137 | 1,212 | ||
Total liabilities | 705,723 | 593,539 | ||
Common shares - par value $0.01 per share, 150,000,000 authorized, 66,196,863 and 66,148,609 issued as of March 31, 2019 and December 31, 2018, respectively | 0 | 0 | ||
Additional paid-in capital | 1,766,775 | 1,766,775 | ||
Retained earnings (deficit) | (457,588) | (449,830) | ||
Treasury Stock, Value | 0 | 0 | ||
Total stockholders' equity | 1,309,187 | 1,316,945 | ||
Total Liabilities and Stockholders' Equity | 2,014,910 | 1,910,484 | ||
Consolidation, Eliminations [Member] | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Fair value of derivatives | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Properties and equipment, net | 0 | 0 | ||
Assets held-for-sale, net | 0 | 0 | ||
Intercompany Receivables | (528,315) | (451,601) | ||
Investments in Affiliates, Subsidiaries, Associates, and Joint Ventures, Fair Value Disclosure | (1,309,187) | (1,316,945) | ||
Derivative Instruments and Hedges, Noncurrent | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total Assets | (1,837,502) | (1,768,546) | ||
Accounts payable | 0 | 0 | ||
Production tax liability | 0 | 0 | ||
Fair value of derivatives | 0 | 0 | ||
Funds held for distribution | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Other accrued expenses | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Intercompany Payable | (528,315) | (451,601) | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Asset retirement obligations | 0 | 0 | ||
Liabilities held for sale | 0 | 0 | ||
Fair value of derivatives | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (528,315) | (451,601) | ||
Common shares - par value $0.01 per share, 150,000,000 authorized, 66,196,863 and 66,148,609 issued as of March 31, 2019 and December 31, 2018, respectively | 0 | 0 | ||
Additional paid-in capital | (1,766,775) | (1,766,775) | ||
Retained earnings (deficit) | 457,588 | 449,830 | ||
Treasury Stock, Value | 0 | 0 | ||
Total stockholders' equity | (1,309,187) | (1,316,945) | ||
Total Liabilities and Stockholders' Equity | $ (1,837,502) | $ (1,768,546) |
Subsidiary Guarantor Condense_2
Subsidiary Guarantor Condensed Consolidating Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Crude oil, natural gas and NGLs sales | $ 321,099 | $ 305,225 |
Commodity price risk management loss, net | (190,074) | (47,240) |
Other income | 3,475 | 2,615 |
Revenues | 134,500 | 260,600 |
Lease operating expenses | 35,221 | 29,636 |
Production taxes | 22,168 | 20,169 |
Transportation, gathering and processing expenses | 11,424 | 7,313 |
Exploration, geologic and geophysical expense | 2,643 | 2,646 |
Impairment of properties and equipment | 7,875 | 33,188 |
General and administrative expense | 39,598 | 35,696 |
Results of Operations, Depreciation, Depletion, Amortization and Accretion | 151,422 | 126,788 |
Accretion of asset retirement obligations | 1,584 | 1,288 |
GainLossonSaleOfOilAndGasPropertyFromContinuingOperations | (369) | 1,432 |
Other Cost and Expense, Operating | 3,554 | 2,768 |
Costs and Expenses | 275,120 | 260,924 |
Operating Income (Loss) | (140,620) | (324) |
Interest Expense | 16,978 | 17,529 |
Interest income | 10 | 148 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (157,588) | (17,705) |
Income tax (expense) benefit | 37,412 | 4,566 |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 |
Net Income (Loss) Attributable to Parent | (120,176) | (13,139) |
Corporate, Non-Segment [Member] | ||
Crude oil, natural gas and NGLs sales | 254,849 | 233,494 |
Commodity price risk management loss, net | (190,074) | (47,240) |
Other income | 2,633 | 2,516 |
Revenues | 67,408 | 188,770 |
Lease operating expenses | 23,634 | 21,362 |
Production taxes | 15,885 | 16,081 |
Transportation, gathering and processing expenses | 5,440 | 3,231 |
Exploration, geologic and geophysical expense | 317 | 313 |
Impairment of properties and equipment | 0 | 6 |
General and administrative expense | 34,434 | 31,559 |
Results of Operations, Depreciation, Depletion, Amortization and Accretion | 112,631 | 94,376 |
Accretion of asset retirement obligations | 1,378 | 1,200 |
GainLossonSaleOfOilAndGasPropertyFromContinuingOperations | (382) | 1,432 |
Other Cost and Expense, Operating | 3,554 | 2,768 |
Costs and Expenses | 196,891 | 172,328 |
Operating Income (Loss) | (129,483) | 16,442 |
Interest Expense | 17,935 | 18,097 |
Interest income | 10 | 148 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (147,408) | (1,507) |
Income tax (expense) benefit | 34,991 | 577 |
Income (Loss) from Subsidiaries, Net of Tax | (7,759) | (12,209) |
Net Income (Loss) Attributable to Parent | (120,176) | (13,139) |
Reportable Legal Entities [Member] | ||
Crude oil, natural gas and NGLs sales | 66,250 | 71,731 |
Commodity price risk management loss, net | 0 | 0 |
Other income | 842 | 99 |
Revenues | 67,092 | 71,830 |
Lease operating expenses | 11,587 | 8,274 |
Production taxes | 6,283 | 4,088 |
Transportation, gathering and processing expenses | 5,984 | 4,082 |
Exploration, geologic and geophysical expense | 2,326 | 2,333 |
Impairment of properties and equipment | 7,875 | 33,182 |
General and administrative expense | 5,164 | 4,137 |
Results of Operations, Depreciation, Depletion, Amortization and Accretion | 38,791 | 32,412 |
Accretion of asset retirement obligations | 206 | 88 |
GainLossonSaleOfOilAndGasPropertyFromContinuingOperations | 13 | 0 |
Other Cost and Expense, Operating | 0 | 0 |
Costs and Expenses | 78,229 | 88,596 |
Operating Income (Loss) | (11,137) | (16,766) |
Interest Expense | 957 | 568 |
Interest income | 0 | 0 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (10,180) | (16,198) |
Income tax (expense) benefit | 2,421 | 3,989 |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 |
Net Income (Loss) Attributable to Parent | (7,759) | (12,209) |
Consolidation, Eliminations [Member] | ||
Crude oil, natural gas and NGLs sales | 0 | 0 |
Commodity price risk management loss, net | 0 | 0 |
Other income | 0 | 0 |
Revenues | 0 | 0 |
Lease operating expenses | 0 | 0 |
Production taxes | 0 | 0 |
Transportation, gathering and processing expenses | 0 | 0 |
Exploration, geologic and geophysical expense | 0 | 0 |
Impairment of properties and equipment | 0 | 0 |
General and administrative expense | 0 | 0 |
Results of Operations, Depreciation, Depletion, Amortization and Accretion | 0 | 0 |
Accretion of asset retirement obligations | 0 | 0 |
GainLossonSaleOfOilAndGasPropertyFromContinuingOperations | 0 | 0 |
Other Cost and Expense, Operating | 0 | 0 |
Costs and Expenses | 0 | 0 |
Operating Income (Loss) | 0 | 0 |
Interest Expense | 0 | 0 |
Interest income | 0 | 0 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 0 | 0 |
Income tax (expense) benefit | 0 | 0 |
Income (Loss) from Subsidiaries, Net of Tax | 7,759 | 12,209 |
Net Income (Loss) Attributable to Parent | $ 7,759 | $ 12,209 |
Subsidiary Guarantor Condense_3
Subsidiary Guarantor Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Cash Provided by (Used in) Operating Activities | $ 181,853 | $ 205,149 |
Payments to Explore and Develop Oil and Gas Properties | (266,940) | (196,917) |
Payments for Capital Improvements | (4,826) | (1,066) |
Payments to Acquire Businesses, Net of Cash Acquired | (180,825) | |
Proceeds from sale of properties and equipment | 102 | 20 |
Proceeds from divestiture | 0 | 39,023 |
Increase (Decrease) in Restricted Cash | 0 | 1,249 |
intercompany Transfer Investing Activities | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | (271,664) | (338,516) |
Proceeds from Lines of Credit | 432,000 | 35,000 |
Repayment of revolving credit facility | (340,500) | (35,000) |
Treasury Stock, Value, Acquired, Cost Method | (1,460) | (2,255) |
Other | (515) | (379) |
Intercompany Transfers Financing Activities | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | 89,525 | (2,634) |
Net change in cash, cash equivalents, and restricted cash | (286) | (136,001) |
Cash, cash equivalents and restricted cash, beginning of period | 9,399 | 189,925 |
Cash, cash equivalents and restricted cash, end of period | 9,113 | 53,924 |
Corporate, Non-Segment [Member] | ||
Net Cash Provided by (Used in) Operating Activities | 152,524 | 149,009 |
Payments to Explore and Develop Oil and Gas Properties | (161,482) | (97,286) |
Payments for Capital Improvements | (4,756) | (701) |
Payments to Acquire Businesses, Net of Cash Acquired | (180,825) | |
Proceeds from sale of properties and equipment | 102 | 20 |
Proceeds from divestiture | 39,023 | |
Increase (Decrease) in Restricted Cash | 1,249 | |
intercompany Transfer Investing Activities | (76,271) | (43,891) |
Net Cash Provided by (Used in) Investing Activities | (242,407) | (282,411) |
Proceeds from Lines of Credit | 432,000 | 35,000 |
Repayment of revolving credit facility | (340,500) | (35,000) |
Treasury Stock, Value, Acquired, Cost Method | (1,460) | (2,255) |
Other | (443) | (344) |
Intercompany Transfers Financing Activities | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | 89,597 | (2,599) |
Net change in cash, cash equivalents, and restricted cash | (286) | (136,001) |
Cash, cash equivalents and restricted cash, beginning of period | 9,399 | 189,925 |
Cash, cash equivalents and restricted cash, end of period | 9,113 | 53,924 |
Reportable Legal Entities [Member] | ||
Net Cash Provided by (Used in) Operating Activities | 29,329 | 56,140 |
Payments to Explore and Develop Oil and Gas Properties | (105,458) | (99,631) |
Payments for Capital Improvements | (70) | (365) |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | |
Proceeds from sale of properties and equipment | 0 | 0 |
Proceeds from divestiture | 0 | |
Increase (Decrease) in Restricted Cash | 0 | |
intercompany Transfer Investing Activities | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | (105,528) | (99,996) |
Proceeds from Lines of Credit | 0 | 0 |
Repayment of revolving credit facility | 0 | 0 |
Treasury Stock, Value, Acquired, Cost Method | 0 | 0 |
Other | (72) | (35) |
Intercompany Transfers Financing Activities | 76,271 | 43,891 |
Net Cash Provided by (Used in) Financing Activities | 76,199 | 43,856 |
Net change in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash, end of period | 0 | 0 |
Consolidation, Eliminations [Member] | ||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 |
Payments to Explore and Develop Oil and Gas Properties | 0 | 0 |
Payments for Capital Improvements | 0 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | |
Proceeds from sale of properties and equipment | 0 | 0 |
Proceeds from divestiture | 0 | |
Increase (Decrease) in Restricted Cash | 0 | |
intercompany Transfer Investing Activities | 76,271 | 43,891 |
Net Cash Provided by (Used in) Investing Activities | 76,271 | 43,891 |
Proceeds from Lines of Credit | 0 | 0 |
Repayment of revolving credit facility | 0 | 0 |
Treasury Stock, Value, Acquired, Cost Method | 0 | 0 |
Other | 0 | 0 |
Intercompany Transfers Financing Activities | (76,271) | (43,891) |
Net Cash Provided by (Used in) Financing Activities | (76,271) | (43,891) |
Net change in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash, end of period | $ 0 | $ 0 |