Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 19, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | CABOT OIL & GAS CORP | |
Entity Central Index Key | 858,470 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 413,874,655 | |
Entity Current Reporting Status | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 8,773 | $ 20,954 |
Accounts receivable, net | 119,743 | 235,397 |
Income taxes receivable | 16,218 | 3,612 |
Inventories | 18,283 | 14,026 |
Derivative instruments | 48,445 | 137,603 |
Other current assets | 3,959 | 1,855 |
Total current assets | 215,421 | 413,447 |
Properties and equipment, net (Successful efforts method) | 5,141,404 | 4,925,711 |
Equity method investments | 93,408 | 68,029 |
Other assets | 34,439 | 30,529 |
TOTAL ASSETS | 5,484,672 | 5,437,716 |
Current liabilities | ||
Accounts payable | 191,341 | 400,076 |
Current portion of long-term debt | 20,000 | 0 |
Accrued liabilities | 39,123 | 63,669 |
Income taxes payable | 2,448 | 0 |
Deferred income taxes | 12,673 | 35,273 |
Total current liabilities | 265,585 | 499,018 |
Postretirement benefits | 38,018 | 35,827 |
Long-term debt | 2,017,000 | 1,752,000 |
Deferred income taxes | 874,702 | 843,876 |
Asset retirement obligations | 138,889 | 124,655 |
Other liabilities | 28,741 | 39,607 |
Total liabilities | $ 3,362,935 | $ 3,294,983 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock: Authorized -- 960,000,000 shares of $0.10 par value in 2015 and 2014, respectively Issued-- 423,767,060 shares and 422,915,258 shares in 2015 and 2014, respectively | $ 42,377 | $ 42,292 |
Additional paid-in capital | 716,930 | 710,432 |
Retained earnings | 1,671,416 | 1,698,995 |
Accumulated other comprehensive income (loss) | (2,151) | (2,151) |
Less treasury stock, at cost: 9,892,680 shares in 2015 and 2014, respectively | (306,835) | (306,835) |
Total stockholders' equity | 2,121,737 | 2,142,733 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 5,484,672 | $ 5,437,716 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, authorized shares | 960,000,000 | 960,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, Issued shares | 423,767,060 | 422,915,258 |
Treasury stock, shares | 9,892,680 | 9,892,680 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING REVENUES | ||||
Natural gas | $ 222,963 | $ 347,970 | $ 807,960 | $ 1,218,540 |
Crude oil and condensate | 59,014 | 82,563 | 202,804 | 228,047 |
Gain (loss) on derivative instruments | 17,364 | 71,906 | 44,668 | 69,577 |
Brokered natural gas | 4,010 | 6,501 | 12,650 | 27,794 |
Other | 1,945 | 3,077 | 8,277 | 11,049 |
TOTAL OPERATING REVENUES | 305,296 | 512,017 | 1,076,359 | 1,555,007 |
OPERATING EXPENSES | ||||
Direct operations | 34,818 | 37,802 | 106,947 | 109,241 |
Transportation and gathering | 102,121 | 85,966 | 321,652 | 247,707 |
Brokered natural gas | 3,020 | 5,680 | 9,643 | 24,570 |
Taxes other than income | 11,407 | 10,933 | 34,298 | 36,794 |
Exploration | 4,930 | 8,812 | 18,960 | 19,963 |
Depreciation, depletion and amortization | 144,326 | 154,013 | 472,335 | 458,995 |
General and administrative | 11,102 | 19,579 | 53,611 | 61,342 |
TOTAL OPERATING EXPENSES | 311,724 | 322,785 | 1,017,446 | 958,612 |
Earnings (loss) on equity method investments | 1,648 | 1,063 | 4,581 | 1,819 |
Gain (loss) on sale of assets | 3,756 | 46 | 3,814 | (2,735) |
INCOME (LOSS) FROM OPERATIONS | (1,024) | 190,341 | 67,308 | 595,479 |
Interest expense | 24,510 | 17,422 | 72,244 | 50,312 |
Income (loss) before income taxes | (25,534) | 172,919 | (4,936) | 545,167 |
Income tax (benefit) expense | (10,020) | 72,131 | (2,169) | 218,928 |
NET INCOME (LOSS) | $ (15,514) | $ 100,788 | $ (2,767) | $ 326,239 |
Earnings (loss) per share | ||||
Basic (in dollars per share) | $ (0.04) | $ 0.24 | $ (0.01) | $ 0.78 |
Diluted (in dollars per share) | $ (0.04) | $ 0.24 | $ (0.01) | $ 0.78 |
Weighted-average common shares outstanding | ||||
Basic (in shares) | 413,846 | 416,173 | 413,636 | 416,785 |
Diluted (in shares) | 413,846 | 418,093 | 413,636 | 418,468 |
Dividends per common share (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.06 | $ 0.06 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income (loss) | $ (15,514) | $ 100,788 | $ (2,767) | $ 326,239 | ||
Other comprehensive income (loss), net of taxes: | ||||||
Reclassification adjustment for settled cash flow hedge contracts | 0 | 12,965 | [1] | 0 | 69,337 | [1] |
Changes in fair value of cash flow hedge contracts | 0 | 0 | 0 | (80,175) | [2] | |
Total other comprehensive income (loss) | 0 | 12,965 | 0 | (10,838) | ||
Comprehensive income (loss) | $ (15,514) | $ 113,753 | $ (2,767) | $ 315,401 | ||
[1] | Net of income taxes of $(8,592) and $(45,951) for the three and nine months ended September 30, 2014, respectively. | |||||
[2] | Net of income taxes of $53,135 for the nine months ended September 30, 2014. |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Reclassification adjustment for settled cash flow hedge contracts, income taxes | $ (8,592) | $ (45,951) |
Changes in fair value of cash flow hedge contracts, income taxes | $ 53,135 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (2,767) | $ 326,239 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation, depletion and amortization | 472,335 | 458,995 |
Deferred income tax expense | 8,226 | 181,439 |
(Gain) loss on sale of assets | (3,814) | 2,735 |
Exploratory dry hole cost | 184 | 6,454 |
(Gain) loss on derivative instruments | (44,668) | (69,577) |
Net cash received (paid) in settlement of derivative instruments | 133,827 | 24,811 |
Amortization of debt issuance costs | 3,395 | 3,378 |
Stock-based compensation and other | 7,041 | 13,304 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 112,712 | 30,418 |
Income taxes | (10,158) | (23,430) |
Inventories | (4,256) | 3,737 |
Other current assets | (2,106) | (147) |
Accounts payable and accrued liabilities | (83,432) | (9,712) |
Other assets and liabilities | (1,565) | 607 |
Stock-based compensation tax benefit | 0 | (6,001) |
Net cash provided by operating activities | 584,954 | 943,250 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (819,839) | (964,741) |
Acquisitions | (16,312) | (15,826) |
Proceeds from sale of assets | 7,380 | 3,913 |
Restricted cash | 0 | 28,094 |
Investment in equity method investments | (20,798) | (28,784) |
Net cash used in investing activities | (849,569) | (977,344) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings from debt | 790,000 | 1,802,000 |
Repayments of debt | (505,000) | (1,337,000) |
Treasury stock repurchases | 0 | (119,767) |
Dividends paid | (24,812) | (25,018) |
Stock-based compensation tax benefit | 0 | 6,001 |
Capitalized debt issuance costs | (7,838) | (5,626) |
Other | 84 | 91 |
Net cash provided by financing activities | 252,434 | 320,681 |
Net (decrease) increase in cash and cash equivalents | (12,181) | 286,587 |
Cash and cash equivalents, beginning of period | 20,954 | 23,400 |
Cash and cash equivalents, end of period | 8,773 | 309,987 |
Supplemental non-cash transactions: | ||
Change in accrued capital costs | $ (159,102) | $ 35,702 |
Financial Statement Presentatio
Financial Statement Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation During interim periods, Cabot Oil & Gas Corporation (the Company) follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2014 (Form 10-K) filed with the Securities and Exchange Commission (SEC). The interim financial statements should be read in conjunction with the notes to the consolidated financial statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the expected results for the entire year. Certain reclassifications have been made to prior year statements to conform with the current year presentation. These reclassifications have no impact on previously reported net income (loss). With respect to the unaudited financial information of the Company as of September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014 , PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated October 23, 2015 appearing herein states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933 (the Act) for their report on the unaudited financial information because that report is not a “report” or a “part” of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act. Recent Accounting Pronouncements In March 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The guidance is effective for interim and annual periods beginning after December 15, 2015. The Company does not believe the adoption of this guidance will have a material effect on its financial position, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), which deferred the effective date of ASU No. 2014-09 by one year, making the new standard effective for interim and annual periods beginning after December 15, 2017. This ASU can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption; however, entities reporting under U.S. GAAP are not permitted to adopt the standard earlier than the original effective date for public entities (that is, no earlier than 2017 for calendar year-end entities). The Company is currently evaluating the effect that adopting this guidance will have on its financial position, results of operations or cash flows. |
Properties and Equipment, Net
Properties and Equipment, Net | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment, Net | Properties and Equipment, Net Properties and equipment, net are comprised of the following: (In thousands) September 30, December 31, Proved oil and gas properties $ 8,701,932 $ 7,984,979 Unproved oil and gas properties 415,355 492,208 Gathering and pipeline systems 243,089 241,272 Land, building and other equipment 116,801 109,758 9,477,177 8,828,217 Accumulated depreciation, depletion and amortization (4,335,773 ) (3,902,506 ) $ 5,141,404 $ 4,925,711 At September 30, 2015 , the Company did not have any projects that had exploratory well costs capitalized for a period of greater than one year after drilling. |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The Company holds a 25% equity interest in Constitution Pipeline Company, LLC (Constitution) and a 20% equity interest in Meade Pipeline Co LLC (Meade). Activity related to these equity method investments is as follows: Constitution Meade Total Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 2015 2014 Balance at beginning of period $ 64,269 $ 26,892 $ 3,760 $ — $ 68,029 $ 26,892 Contributions 13,500 26,575 7,298 2,209 20,798 28,784 Earnings (loss) on equity method investments 4,608 1,938 (27 ) (119 ) 4,581 1,819 Balance at end of period $ 82,377 $ 55,405 $ 11,031 $ 2,090 $ 93,408 $ 57,495 The following table represents summarized financial information for Constitution as derived from the respective unaudited financial statements of Constitution for the nine months ended September 30, 2015 and 2014 , respectively: Nine Months Ended September 30, 2015 (In thousands) 2015 2014 Revenues $ — $ — Income (loss) from continuing operations $ 19,366 $ 9,723 Net income $ 19,366 $ 9,723 The Company records the activity for its equity method investments on a one month lag; however, the above summarized financial information represents Constitution's operations for the nine months ended September 30, 2015 and 2014 , respectively. For further information regarding the Company’s equity method investments, refer to Note 4 of the Notes to the Consolidated Financial Statements in the Form 10-K. |
Debt and Credit Agreements
Debt and Credit Agreements | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements The Company’s debt and credit agreements consisted of the following: (In thousands) September 30, December 31, Total debt 7.33% weighted-average fixed rate notes $ 20,000 $ 20,000 6.51% weighted-average fixed rate notes 425,000 425,000 9.78% fixed rate notes 67,000 67,000 5.58% weighted-average fixed rate notes 175,000 175,000 3.65% weighted-average fixed rate notes 925,000 925,000 Revolving credit facility 425,000 140,000 Current maturities 7.33% weighted-average fixed rate notes (20,000 ) — Long-term debt, excluding current maturities $ 2,017,000 $ 1,752,000 The Company was in compliance with all restrictive financial covenants for both the revolving credit facility and fixed rate notes as of September 30, 2015 . Revolving credit facility At September 30, 2015 , the Company had $425.0 million of borrowings outstanding under its revolving credit facility at a weighted-average interest rate of 2.1% and had unused commitments of $1.4 billion . The Company’s weighted-average effective interest rate under the revolving credit facility for the three months ended September 30, 2015 and 2014 was approximately 2.1% and 2.2% , respectively, and for the nine months ended September 30, 2015 and 2014 was approximately 2.2% . Effective April 17, 2015, the Company amended its revolving credit facility to extend the maturity date from May 2017 to April 2020 and change the mechanism under which interest rate margins are determined for outstanding borrowings. The revolving credit facility, as amended, provides for an increase in the borrowing base from $3.1 billion to $3.4 billion and an increase in commitments from $1.4 billion to $1.8 billion . The amended credit facility also provides for an accordion feature, which allows the Company to increase the available credit line up to an additional $500 million if one or more of the existing or new banks agree to provide such increased amount. The borrowing base is redetermined annually under the terms of the revolving credit facility on April 1. In addition, either the Company or the banks may request an interim redetermination twice a year or in conjunction with certain acquisitions or sales of oil and gas properties. Interest rates under the amended credit facility are based on Eurodollar (LIBOR) or alternate base rate (ABR) indications, plus a margin. The associated margins are based on the Company's leverage ratio as shown below: Leverage Ratio (1) <1.0x ≥1.0x and <2.0x ≥2.0x and <3.0x ≥3.0x Eurodollar loans 1.50 % 1.75 % 2.00 % 2.25 % ABR loans 0.50 % 0.75 % 1.00 % 1.25 % (1) The ratio of debt and other liabilities to Consolidated EBITDAX, as defined in the credit agreement. Upon the Company achieving an investment grade rating from either Moody's or S&P, the associated margins will be adjusted and determined based on the Company's respective credit rating on a prospective basis. The amended credit facility also provides for a commitment fee on the unused available balance at annual rates ranging from 0.30% to 0.50% . The other terms and conditions of the amended facility are generally consistent with the terms and conditions of the revolving credit facility prior to its amendment as disclosed in Note 5 of the Notes to the Consolidated Financial Statements in the Form 10-K. The Company incurred $7.8 million of debt issuance costs in connection with the amendment to the revolving credit facility, which were capitalized and will be amortized over the term of the amended credit facility. The remaining unamortized costs of $8.3 million will be amortized over the term of the amended revolving credit facility in accordance with ASC-470-50, "Debt Modifications and Extinguishments." |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Through March 31, 2014, the Company elected to designate its commodity derivatives as cash flow hedges for accounting purposes. Effective April 1, 2014, the Company elected to discontinue hedge accounting for its commodity derivatives on a prospective basis. As a result of discontinuing hedge accounting, the unrealized loss included in accumulated other comprehensive income (loss) as of April 1, 2014 of $73.4 million ( $44.2 million net of tax) was frozen and reclassified into natural gas and crude oil and condensate revenues in the Condensed Consolidated Statement of Operations throughout the remainder of 2014 as the underlying hedged transactions occurred. As of September 30, 2015 and December 31, 2014 , there were no gains or losses deferred in accumulated other comprehensive income (loss) associated with the Company's commodity derivatives. As of September 30, 2015 , the Company had the following outstanding commodity derivatives: Collars Swaps Floor Ceiling Type of Contract Volume Contract Period Range Weighted-Average Range Weighted- Average Weighted- Average Natural gas 17.9 Bcf Oct. 2015 - Dec. 2015 $3.86 - $3.91 $ 3.87 $4.27 - $4.43 $ 4.35 Natural gas 17.9 Bcf Oct. 2015 - Dec. 2015 $ 3.92 Natural gas 4.5 Bcf Oct. 2015 $ 3.36 In the table above, natural gas prices are stated per Mcf. Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities (In thousands) Balance Sheet Location September 30, December 31, September 30, December 31, Commodity contracts Derivative instruments (current assets) $ 48,445 $ 137,603 $ — $ — Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In thousands) September 30, December 31, Derivative assets Gross amounts of recognized assets $ 48,445 $ 137,603 Gross amounts offset in the statement of financial position — — Net amounts of assets presented in the statement of financial position 48,445 137,603 Gross amounts of financial instruments not offset in the statement of financial position — 2,338 Net amount $ 48,445 $ 139,941 Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Loss) The effective portion of gain (loss) recognized in accumulated other comprehensive income (loss) on derivatives is as follows: Three Months Ended Nine Months Ended (In thousands) 2015 2014 2015 2014 Commodity contracts $ — $ — $ — $ (133,310 ) The effective portion of gain (loss) reclassified from accumulated other comprehensive income (loss) into income is as follows: Three Months Ended Nine Months Ended (In thousands) 2015 2014 2015 2014 Natural gas revenues $ — $ (21,427 ) $ — $ (114,304 ) Crude oil and condensate revenues — (130 ) — (984 ) $ — $ (21,557 ) $ — $ (115,288 ) Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations Three Months Ended Nine Months Ended (In thousands) 2015 2014 2015 2014 Derivatives designated as hedges Cash received (paid) on settlement of derivative instruments Natural gas $ — $ — $ — $ (70,557 ) Crude oil and condensate — — — (218 ) $ — $ — $ — $ (70,775 ) Derivatives not designated as hedges Cash received (paid) on settlement of derivative instruments Natural gas $ — $ (21,427 ) $ — $ (43,747 ) Crude oil and condensate — (130 ) — (766 ) Gain (loss) on derivative instruments 45,097 40,073 133,827 24,811 Non-cash gain (loss) on derivative instruments Gain (loss) on derivative instruments (27,733 ) 31,833 (89,159 ) 44,766 $ 17,364 $ 50,349 $ 44,668 $ 25,064 $ 17,364 $ 50,349 $ 44,668 $ (45,711 ) For the three and nine months ended September 30, 2014 , there was no ineffectiveness recorded in the Condensed Consolidated Statement of Operations related to derivative instruments designated as cash flow hedges. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company follows the authoritative guidance for measuring fair value of assets and liabilities in its financial statements. For further information regarding the fair value hierarchy, refer to Note 1 of the Notes to the Consolidated Financial Statements in the Form 10-K. Financial Assets and Liabilities The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis: (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at September 30, 2015 Assets Deferred compensation plan $ 12,586 $ — $ — $ 12,586 Derivative instruments — 16,152 32,293 48,445 Total assets $ 12,586 $ 16,152 $ 32,293 $ 61,031 Liabilities Deferred compensation plan $ 24,263 $ — $ — $ 24,263 Total liabilities $ 24,263 $ — $ — $ 24,263 (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2014 Assets Deferred compensation plan $ 13,115 $ — $ — $ 13,115 Derivative instruments — 51,645 85,958 137,603 Total assets $ 13,115 $ 51,645 $ 85,958 $ 150,718 Liabilities Deferred compensation plan $ 28,932 $ — $ — $ 28,932 Total liabilities $ 28,932 $ — $ — $ 28,932 The Company’s investments associated with its deferred compensation plan consist of mutual funds and deferred shares of the Company’s common stock that are publicly traded and for which market prices are readily available. The derivative instruments were measured based on quotes from the Company’s counterparties. Such quotes have been derived using an income approach that considers various inputs including current market and contractual prices for the underlying instruments, quoted forward commodity prices, basis differentials, volatility factors and interest rates, such as a LIBOR curve for a similar length of time as the derivative contract term as applicable. Estimates are verified using relevant NYMEX futures contracts and/or are compared to multiple quotes obtained from counterparties for reasonableness. The determination of the fair values presented above also incorporates a credit adjustment for non-performance risk. The Company measured the non-performance risk of its counterparties by reviewing credit default swap spreads for the various financial institutions with which it has derivative transactions, while non-performance risk of the Company is evaluated using a market credit spread provided by the Company’s bank. The Company has not incurred any losses related to non-performance risk of its counterparties and does not anticipate any material impact on its financial results due to non-performance by third parties. The most significant unobservable inputs relative to the Company’s Level 3 derivative contracts are basis differentials and volatility factors. An increase (decrease) in these unobservable inputs would result in an increase (decrease) in fair value, respectively. The Company does not have access to the specific assumptions used in its counterparties’ valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided. The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: Nine Months Ended (In thousands) 2015 2014 Balance at beginning of period $ 85,958 $ (3,910 ) Total gains (losses) (realized or unrealized): Realized and unrealized gains (losses) included in earnings 23,867 (33,804 ) Included in other comprehensive income — (21,068 ) Settlements (77,532 ) 74,271 Transfers in and/or out of Level 3 — — Balance at end of period $ 32,293 $ 15,489 Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ (53,665 ) $ 40,467 There were no transfers between Level 1 and Level 2 measurements for the nine months ended September 30, 2015 and 2014 . Non-Financial Assets and Liabilities The Company discloses or recognizes its non-financial assets and liabilities, such as impairments, at fair value on a nonrecurring basis. As none of the Company’s non-financial assets and liabilities were measured at fair value as of September 30, 2015 and 2014 , additional disclosures were not required. The estimated fair value of the Company’s asset retirement obligations at inception is determined by utilizing the income approach by applying a credit-adjusted risk-free rate, which takes into account the Company’s credit risk, the time value of money, and the current economic state, to the undiscounted expected abandonment cash flows. Given the unobservable nature of the inputs, the measurement of the asset retirement obligations was classified as Level 3 in the fair value hierarchy. Fair Value of Other Financial Instruments The estimated fair value of financial instruments is the amount at which the instrument could be exchanged currently between willing parties. The carrying amount reported in the Condensed Consolidated Balance Sheet for cash and cash equivalents approximates fair value due to the short-term maturities of these instruments. Cash and cash equivalents are classified as Level 1 in the fair value hierarchy. The Company uses available market data and valuation methodologies to estimate the fair value of debt. The fair value of debt is the estimated amount the Company would have to pay a third party to assume the debt, including a credit spread for the difference between the issue rate and the period end market rate. The credit spread is the Company’s default or repayment risk. The credit spread (premium or discount) is determined by comparing the Company’s fixed-rate notes and revolving credit facility to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The fair value of all fixed-rate notes and the revolving credit facility is based on interest rates currently available to the Company. The Company’s debt is valued using an income approach and classified as Level 3 in the fair value hierarchy. The carrying amount and fair value of debt is as follows: September 30, 2015 December 31, 2014 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Debt $ 2,037,000 $ 2,007,444 $ 1,752,000 $ 1,850,867 Current maturities (20,000 ) (20,775 ) — — Long-term debt, excluding current maturities $ 2,017,000 $ 1,986,669 $ 1,752,000 $ 1,850,867 |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Activity related to the Company’s asset retirement obligations is as follows: (In thousands) Nine Months Ended Balance at beginning of period $ 126,655 Liabilities incurred 9,230 Liabilities settled (83 ) Accretion expense 5,087 Balance at end of period $ 140,889 As of September 30, 2015 and December 31, 2014 , approximately $2.0 million is included in accrued liabilities in the Condensed Consolidated Balance Sheet, which represents the current portion of the Company’s asset retirement obligations. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Obligations The Company has various contractual obligations in the normal course of its operations. There have been no material changes to the Company’s contractual obligations described under “Transportation and Gathering Agreements,” “Drilling Rig Commitments” and “Lease Commitments” as disclosed in Note 9 in the Notes to Consolidated Financial Statements included in the Form 10-K. Legal Matters The Company is a defendant in various legal proceedings arising in the normal course of business. All known liabilities are accrued when management determines they are probable based on its best estimate of the potential loss. While the outcome and impact of these legal proceedings on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings will not have a material effect on the Company’s financial position, results of operations or cash flows. Contingency Reserves When deemed necessary, the Company establishes reserves for certain legal proceedings. The establishment of a reserve is based on an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible that the Company could incur additional losses with respect to those matters in which reserves have been established. The Company believes that any such amount above the amounts accrued would not be material to the Condensed Consolidated Financial Statements. Future changes in facts and circumstances not currently foreseeable could result in the actual liability exceeding the estimated ranges of loss and amounts accrued. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation General Stock-based compensation (benefit) expense in the third quarter of 2015 and 2014 was $(2.9) million and $5.7 million , respectively, and $11.6 million and $15.1 million during the first nine months of 2015 and 2014 , respectively. Stock-based compensation expense is included in general and administrative expense in the Condensed Consolidated Statement of Operations. During the first nine months of 2014 , the Company recognized a $6.0 million tax benefit related to the federal tax deduction in excess of book compensation cost for employee stock-based compensation. The Company is able to recognize this tax benefit only to the extent it reduces the Company’s income taxes payable. There was no tax benefit recognized from stock-based compensation during the first nine months of 2015 . Refer to Note 13 of the Notes to the Consolidated Financial Statements in the Form 10-K for further description of the various types of stock-based compensation awards and the applicable award terms. Restricted Stock Awards During the first nine months of 2015 , 3,400 restricted stock awards were granted to employees with a weighted-average grant date per share value of $28.55 . The fair value of restricted stock grants is based on the closing stock price on the grant date. The Company used an annual forfeiture rate assumption of 5.0% for purposes of recognizing stock-based compensation expense for restricted stock awards. Restricted Stock Units During the first nine months of 2015 , 49,447 restricted stock units were granted to non-employee directors of the Company with a weighted-average grant date per unit value of $28.02 . The fair value of these units is measured based on the closing stock price on grant date and compensation expense is recorded immediately. These units immediately vest and are issued when the director ceases to be a director of the Company. During the first nine months of 2015 , 230,068 shares of common stock were issued pursuant to previously granted restricted stock units at a weighted-average grant date per unit value of $13.45 to two directors upon their departure from the Company's Board of Directors. Performance Share Awards The performance period for the awards granted in 2015 commenced on January 1, 2015 and ends on December 31, 2017 . The Company used an annual forfeiture rate assumption ranging from 0% to 5% for purposes of recognizing stock-based compensation expense for its performance share awards. Performance Share Awards Based on Internal Performance Metrics The fair value of performance award grants based on internal performance metrics is based on the closing stock price on the grant date and represents the right to receive up to 100% of the award in shares of common stock. Employee Performance Share Awards. During the first nine months of 2015 , 349,780 Employee Performance Share Awards were granted at a grant date per share value of $27.71 . The performance metrics are set by the Company’s compensation committee and are based on the Company’s average production, average finding costs and average reserve replacement over a three -year performance period. Based on the Company’s probability assessment at September 30, 2015 , it is considered probable that the criteria for these awards will be met. Hybrid Performance Share Awards. During the first nine months of 2015 , 194,947 Hybrid Performance Share Awards were granted at a grant date per share value of $27.71 . The 2015 awards vest 25% on each of the first and second anniversary dates and 50% on the third anniversary , provided that the Company has $100 million or more of operating cash flow for the year preceding the vesting date, as set by the Company’s compensation committee. If the Company does not meet the performance metric for the applicable period, then the portion of the performance shares that would have been issued on that anniversary date will be forfeited. Based on the Company’s probability assessment at September 30, 2015 , it is considered probable that the criteria for these awards will be met. Performance Share Awards Based on Market Conditions These awards have both an equity and liability component, with the right to receive up to the first 100% of the award in shares of common stock and the right to receive up to an additional 100% of the value of the award in excess of the equity component in cash. The equity portion of these awards is valued on the grant date and is not marked to market, while the liability portion of the awards is valued as of the end of each reporting period on a mark-to-market basis. The Company calculates the fair value of the equity and liability portions of the awards using a Monte Carlo simulation model. TSR Performance Share Awards. During the first nine months of 2015 , 292,421 TSR Performance Share Awards were granted and are earned, or not earned, based on the comparative performance of the Company’s common stock measured against a predetermined group of companies in the Company’s peer group over a three -year performance period. The following assumptions were used to determine the grant date fair value of the equity component (February 19, 2015) and the period-end fair value of the liability component of the TSR Performance Share Awards: Grant Date September 30, 2015 Fair value per performance share award $ 19.29 $7.66 - $10.04 Assumptions: Stock price volatility 32.3 % 29.8% - 39.2% Risk free rate of return 1.0 % 0.0% - 0.7% Expected dividend yield 0.3 % 0.4 % Supplemental Employee Incentive Plan The Company recognized stock-based compensation (benefit) expense related to the Company’s Supplemental Employee Incentive Plan IV (SEIP IV) of $(0.1) million and $0.2 million for the three months ended September 30, 2015 and 2014 , respectively, and $(0.2) million and $3.3 million for the nine months ended September 30, 2015 and 2014 , respectively, which is included in general and administrative expense in the Condensed Consolidated Statement of Operations. Refer to Note 13 of the Notes to the Consolidated Financial Statements in the Form 10-K for additional information on the provisions of the SEIP IV. The interim trigger date for the SEIP IV lapsed on September 30, 2015. There were no amounts paid with respect to that trigger date as the Company's common stock did equal or exceed the interim price goal of $55.00 per share. The following assumptions were used to determine the period-end fair value of the SEIP IV liability using a Monte Carlo simulation model: September 30, 2015 Stock price volatility 39.3 % Risk free rate of return 0.6 % Annual salary increase rate 4.0 % Annual turnover rate 4.6 % |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per share (EPS) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS is similarly calculated except that the common shares outstanding for the period is increased using the treasury stock method to reflect the potential dilution that could occur if outstanding stock appreciation rights were exercised and stock awards were vested at the end of the applicable period. The following is a calculation of basic and diluted weighted-average shares outstanding: Three Months Ended Nine Months Ended (In thousands) 2015 2014 2015 2014 Weighted-average shares - basic 413,846 416,173 413,636 416,785 Dilution effect of stock appreciation rights and stock awards at end of period — 1,920 — 1,683 Weighted-average shares - diluted 413,846 418,093 413,636 418,468 Weighted-average stock awards and shares excluded from diluted EPS due to the anti-dilutive effect 1,692 — 1,390 461 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Amounts reclassified from accumulated other comprehensive income (loss) into the Condensed Consolidated Statement of Operations were as follows: Three Months Ended Nine Months Ended Affected Line Item in the Condensed (In thousands) 2015 2014 2015 2014 Consolidated Statement of Operations Gain (loss) on cash flow hedges Commodity contracts $ — $ (21,427 ) $ — $ (114,304 ) Natural gas revenues Commodity contracts — (130 ) — (984 ) Crude oil and condensate revenues — (21,557 ) — (115,288 ) Total before tax — 8,592 — 45,951 Tax benefit (expense) Total reclassifications for the period $ — $ (12,965 ) $ — $ (69,337 ) Net of tax |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 9 Months Ended |
Sep. 30, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Additional Balance Sheet Information Certain balance sheet amounts are comprised of the following: (In thousands) September 30, December 31, Accounts receivable, net Trade accounts $ 114,154 $ 227,835 Joint interest accounts 1,585 2,245 Other accounts 5,001 6,515 120,740 236,595 Allowance for doubtful accounts (997 ) (1,198 ) $ 119,743 $ 235,397 Inventories Tubular goods and well equipment $ 15,016 $ 10,675 Natural gas in storage 3,205 3,281 Other accounts 62 70 $ 18,283 $ 14,026 Other assets Deferred compensation plan $ 12,586 $ 13,115 Debt issuance costs 21,791 17,349 Other accounts 62 65 $ 34,439 $ 30,529 Accounts payable Trade accounts $ 33,312 $ 54,949 Natural gas purchases 1,859 2,407 Royalty and other owners 75,976 97,298 Accrued capital costs 63,324 222,426 Taxes other than income 12,432 16,806 Drilling advances 81 88 Other accounts 4,357 6,102 $ 191,341 $ 400,076 Accrued liabilities Employee benefits $ 12,501 $ 22,815 Taxes other than income 10,694 7,128 Interest payable 13,595 30,677 Other accounts 2,333 3,049 $ 39,123 $ 63,669 Other liabilities Deferred compensation plan $ 24,263 $ 28,932 Other accounts 4,478 10,675 $ 28,741 $ 39,607 |
Financial Statement Presentat20
Financial Statement Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The guidance is effective for interim and annual periods beginning after December 15, 2015. The Company does not believe the adoption of this guidance will have a material effect on its financial position, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), which deferred the effective date of ASU No. 2014-09 by one year, making the new standard effective for interim and annual periods beginning after December 15, 2017. This ASU can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption; however, entities reporting under U.S. GAAP are not permitted to adopt the standard earlier than the original effective date for public entities (that is, no earlier than 2017 for calendar year-end entities). The Company is currently evaluating the effect that adopting this guidance will have on its financial position, results of operations or cash flows. |
Properties and Equipment, Net (
Properties and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of properties and equipment, net | Properties and equipment, net are comprised of the following: (In thousands) September 30, December 31, Proved oil and gas properties $ 8,701,932 $ 7,984,979 Unproved oil and gas properties 415,355 492,208 Gathering and pipeline systems 243,089 241,272 Land, building and other equipment 116,801 109,758 9,477,177 8,828,217 Accumulated depreciation, depletion and amortization (4,335,773 ) (3,902,506 ) $ 5,141,404 $ 4,925,711 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Activity Related to the Company's Equity Method Investments | Activity related to these equity method investments is as follows: Constitution Meade Total Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 2015 2014 Balance at beginning of period $ 64,269 $ 26,892 $ 3,760 $ — $ 68,029 $ 26,892 Contributions 13,500 26,575 7,298 2,209 20,798 28,784 Earnings (loss) on equity method investments 4,608 1,938 (27 ) (119 ) 4,581 1,819 Balance at end of period $ 82,377 $ 55,405 $ 11,031 $ 2,090 $ 93,408 $ 57,495 The following table represents summarized financial information for Constitution as derived from the respective unaudited financial statements of Constitution for the nine months ended September 30, 2015 and 2014 , respectively: Nine Months Ended September 30, 2015 (In thousands) 2015 2014 Revenues $ — $ — Income (loss) from continuing operations $ 19,366 $ 9,723 Net income $ 19,366 $ 9,723 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt and credit agreement components | The Company’s debt and credit agreements consisted of the following: (In thousands) September 30, December 31, Total debt 7.33% weighted-average fixed rate notes $ 20,000 $ 20,000 6.51% weighted-average fixed rate notes 425,000 425,000 9.78% fixed rate notes 67,000 67,000 5.58% weighted-average fixed rate notes 175,000 175,000 3.65% weighted-average fixed rate notes 925,000 925,000 Revolving credit facility 425,000 140,000 Current maturities 7.33% weighted-average fixed rate notes (20,000 ) — Long-term debt, excluding current maturities $ 2,017,000 $ 1,752,000 |
Changes in basis spread on variable rate based on changes in leverage ratio | Interest rates under the amended credit facility are based on Eurodollar (LIBOR) or alternate base rate (ABR) indications, plus a margin. The associated margins are based on the Company's leverage ratio as shown below: Leverage Ratio (1) <1.0x ≥1.0x and <2.0x ≥2.0x and <3.0x ≥3.0x Eurodollar loans 1.50 % 1.75 % 2.00 % 2.25 % ABR loans 0.50 % 0.75 % 1.00 % 1.25 % (1) The ratio of debt and other liabilities to Consolidated EBITDAX, as defined in the credit agreement. |
Derivative Instruments and He24
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding commodity derivatives | As of September 30, 2015 , the Company had the following outstanding commodity derivatives: Collars Swaps Floor Ceiling Type of Contract Volume Contract Period Range Weighted-Average Range Weighted- Average Weighted- Average Natural gas 17.9 Bcf Oct. 2015 - Dec. 2015 $3.86 - $3.91 $ 3.87 $4.27 - $4.43 $ 4.35 Natural gas 17.9 Bcf Oct. 2015 - Dec. 2015 $ 3.92 Natural gas 4.5 Bcf Oct. 2015 $ 3.36 |
Effect of derivative instruments on the condensed consolidated balance sheet | Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities (In thousands) Balance Sheet Location September 30, December 31, September 30, December 31, Commodity contracts Derivative instruments (current assets) $ 48,445 $ 137,603 $ — $ — |
Schedule of offsetting of derivative liabilities in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In thousands) September 30, December 31, Derivative assets Gross amounts of recognized assets $ 48,445 $ 137,603 Gross amounts offset in the statement of financial position — — Net amounts of assets presented in the statement of financial position 48,445 137,603 Gross amounts of financial instruments not offset in the statement of financial position — 2,338 Net amount $ 48,445 $ 139,941 |
Schedule of offsetting of derivative assets in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In thousands) September 30, December 31, Derivative assets Gross amounts of recognized assets $ 48,445 $ 137,603 Gross amounts offset in the statement of financial position — — Net amounts of assets presented in the statement of financial position 48,445 137,603 Gross amounts of financial instruments not offset in the statement of financial position — 2,338 Net amount $ 48,445 $ 139,941 |
Amount of gain (loss) recognized in accumulated other comprehensive income (loss) on derivatives | The effective portion of gain (loss) recognized in accumulated other comprehensive income (loss) on derivatives is as follows: Three Months Ended Nine Months Ended (In thousands) 2015 2014 2015 2014 Commodity contracts $ — $ — $ — $ (133,310 ) The effective portion of gain (loss) reclassified from accumulated other comprehensive income (loss) into income is as follows: Three Months Ended Nine Months Ended (In thousands) 2015 2014 2015 2014 Natural gas revenues $ — $ (21,427 ) $ — $ (114,304 ) Crude oil and condensate revenues — (130 ) — (984 ) $ — $ (21,557 ) $ — $ (115,288 ) |
Effect of derivatives on the condensed consolidated statement of operations | Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations Three Months Ended Nine Months Ended (In thousands) 2015 2014 2015 2014 Derivatives designated as hedges Cash received (paid) on settlement of derivative instruments Natural gas $ — $ — $ — $ (70,557 ) Crude oil and condensate — — — (218 ) $ — $ — $ — $ (70,775 ) Derivatives not designated as hedges Cash received (paid) on settlement of derivative instruments Natural gas $ — $ (21,427 ) $ — $ (43,747 ) Crude oil and condensate — (130 ) — (766 ) Gain (loss) on derivative instruments 45,097 40,073 133,827 24,811 Non-cash gain (loss) on derivative instruments Gain (loss) on derivative instruments (27,733 ) 31,833 (89,159 ) 44,766 $ 17,364 $ 50,349 $ 44,668 $ 25,064 $ 17,364 $ 50,349 $ 44,668 $ (45,711 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities measured at fair value on a recurring basis | The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis: (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at September 30, 2015 Assets Deferred compensation plan $ 12,586 $ — $ — $ 12,586 Derivative instruments — 16,152 32,293 48,445 Total assets $ 12,586 $ 16,152 $ 32,293 $ 61,031 Liabilities Deferred compensation plan $ 24,263 $ — $ — $ 24,263 Total liabilities $ 24,263 $ — $ — $ 24,263 (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2014 Assets Deferred compensation plan $ 13,115 $ — $ — $ 13,115 Derivative instruments — 51,645 85,958 137,603 Total assets $ 13,115 $ 51,645 $ 85,958 $ 150,718 Liabilities Deferred compensation plan $ 28,932 $ — $ — $ 28,932 Total liabilities $ 28,932 $ — $ — $ 28,932 |
Reconciliation of changes in the fair value of financial assets and liabilities classified as level 3 | The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: Nine Months Ended (In thousands) 2015 2014 Balance at beginning of period $ 85,958 $ (3,910 ) Total gains (losses) (realized or unrealized): Realized and unrealized gains (losses) included in earnings 23,867 (33,804 ) Included in other comprehensive income — (21,068 ) Settlements (77,532 ) 74,271 Transfers in and/or out of Level 3 — — Balance at end of period $ 32,293 $ 15,489 Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ (53,665 ) $ 40,467 |
Carrying amounts and fair values of debt | The carrying amount and fair value of debt is as follows: September 30, 2015 December 31, 2014 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Debt $ 2,037,000 $ 2,007,444 $ 1,752,000 $ 1,850,867 Current maturities (20,000 ) (20,775 ) — — Long-term debt, excluding current maturities $ 2,017,000 $ 1,986,669 $ 1,752,000 $ 1,850,867 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Activity Related to Asset Retirement Obligations | Activity related to the Company’s asset retirement obligations is as follows: (In thousands) Nine Months Ended Balance at beginning of period $ 126,655 Liabilities incurred 9,230 Liabilities settled (83 ) Accretion expense 5,087 Balance at end of period $ 140,889 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Employee Incentive Plan IV | |
Stock-Based Compensation arrangements | |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The following assumptions were used to determine the period-end fair value of the SEIP IV liability using a Monte Carlo simulation model: September 30, 2015 Stock price volatility 39.3 % Risk free rate of return 0.6 % Annual salary increase rate 4.0 % Annual turnover rate 4.6 % |
TSR Performance Share Awards | |
Stock-Based Compensation arrangements | |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The following assumptions were used to determine the grant date fair value of the equity component (February 19, 2015) and the period-end fair value of the liability component of the TSR Performance Share Awards: Grant Date September 30, 2015 Fair value per performance share award $ 19.29 $7.66 - $10.04 Assumptions: Stock price volatility 32.3 % 29.8% - 39.2% Risk free rate of return 1.0 % 0.0% - 0.7% Expected dividend yield 0.3 % 0.4 % |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted weighted-average shares outstanding | The following is a calculation of basic and diluted weighted-average shares outstanding: Three Months Ended Nine Months Ended (In thousands) 2015 2014 2015 2014 Weighted-average shares - basic 413,846 416,173 413,636 416,785 Dilution effect of stock appreciation rights and stock awards at end of period — 1,920 — 1,683 Weighted-average shares - diluted 413,846 418,093 413,636 418,468 Weighted-average stock awards and shares excluded from diluted EPS due to the anti-dilutive effect 1,692 — 1,390 461 |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of amounts reclassified from accumulated other comprehensive income (loss) into the Condensed Consolidated Statement of Operations | Amounts reclassified from accumulated other comprehensive income (loss) into the Condensed Consolidated Statement of Operations were as follows: Three Months Ended Nine Months Ended Affected Line Item in the Condensed (In thousands) 2015 2014 2015 2014 Consolidated Statement of Operations Gain (loss) on cash flow hedges Commodity contracts $ — $ (21,427 ) $ — $ (114,304 ) Natural gas revenues Commodity contracts — (130 ) — (984 ) Crude oil and condensate revenues — (21,557 ) — (115,288 ) Total before tax — 8,592 — 45,951 Tax benefit (expense) Total reclassifications for the period $ — $ (12,965 ) $ — $ (69,337 ) Net of tax |
Additional Balance Sheet Info30
Additional Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Certain balance sheet amounts are comprised of the following: (In thousands) September 30, December 31, Accounts receivable, net Trade accounts $ 114,154 $ 227,835 Joint interest accounts 1,585 2,245 Other accounts 5,001 6,515 120,740 236,595 Allowance for doubtful accounts (997 ) (1,198 ) $ 119,743 $ 235,397 Inventories Tubular goods and well equipment $ 15,016 $ 10,675 Natural gas in storage 3,205 3,281 Other accounts 62 70 $ 18,283 $ 14,026 Other assets Deferred compensation plan $ 12,586 $ 13,115 Debt issuance costs 21,791 17,349 Other accounts 62 65 $ 34,439 $ 30,529 Accounts payable Trade accounts $ 33,312 $ 54,949 Natural gas purchases 1,859 2,407 Royalty and other owners 75,976 97,298 Accrued capital costs 63,324 222,426 Taxes other than income 12,432 16,806 Drilling advances 81 88 Other accounts 4,357 6,102 $ 191,341 $ 400,076 Accrued liabilities Employee benefits $ 12,501 $ 22,815 Taxes other than income 10,694 7,128 Interest payable 13,595 30,677 Other accounts 2,333 3,049 $ 39,123 $ 63,669 Other liabilities Deferred compensation plan $ 24,263 $ 28,932 Other accounts 4,478 10,675 $ 28,741 $ 39,607 |
Properties and Equipment, Net31
Properties and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Proved oil and gas properties | $ 8,701,932 | $ 7,984,979 |
Unproved oil and gas properties | 415,355 | 492,208 |
Gathering and pipeline systems | 243,089 | 241,272 |
Land, building and other equipment | 116,801 | 109,758 |
Properties and equipment, gross, total | 9,477,177 | 8,828,217 |
Accumulated depreciation, depletion and amortization | (4,335,773) | (3,902,506) |
Properties and equipment, net | $ 5,141,404 | $ 4,925,711 |
Equity Method Investments - Act
Equity Method Investments - Activity Related to Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Equity Method Investments | ||||
Balance at beginning of period | $ 68,029 | $ 26,892 | ||
Contributions | 20,798 | 28,784 | ||
Earnings (loss) on equity method investments | $ 1,648 | $ 1,063 | 4,581 | 1,819 |
Balance at end of period | $ 93,408 | 57,495 | $ 93,408 | 57,495 |
Constitution | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 25.00% | 25.00% | ||
Equity Method Investments | ||||
Balance at beginning of period | $ 64,269 | 26,892 | ||
Contributions | 13,500 | 26,575 | ||
Earnings (loss) on equity method investments | 4,608 | 1,938 | ||
Balance at end of period | $ 82,377 | 55,405 | 82,377 | 55,405 |
Summarized Financial Information | ||||
Revenues | 0 | 0 | ||
Income (loss) from continuing operations | 19,366 | 9,723 | ||
Net income | $ 19,366 | 9,723 | ||
Meade | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 20.00% | 20.00% | ||
Equity Method Investments | ||||
Balance at beginning of period | $ 3,760 | 0 | ||
Contributions | 7,298 | 2,209 | ||
Earnings (loss) on equity method investments | (27) | (119) | ||
Balance at end of period | $ 11,031 | $ 2,090 | $ 11,031 | $ 2,090 |
Debt and Credit Agreements (Det
Debt and Credit Agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Current maturities | $ (20,000) | $ 0 |
Long-term debt, excluding current maturities | 2,017,000 | 1,752,000 |
7.33% weighted-average fixed rate notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 20,000 | 20,000 |
Current maturities | (20,000) | 0 |
6.51% weighted-average fixed rate notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 425,000 | 425,000 |
9.78% fixed rate notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 67,000 | 67,000 |
5.58% weighted-average fixed rate notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 175,000 | 175,000 |
3.65% weighted-average fixed rate notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 925,000 | 925,000 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 425,000 | $ 140,000 |
Debt and Credit Agreements (Add
Debt and Credit Agreements (Additional Information) (Details) | Sep. 30, 2015 | Dec. 31, 2014 |
7.33% weighted-average fixed rate notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, weighted average interest rate | 7.33% | 7.33% |
6.51% weighted-average fixed rate notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, weighted average interest rate | 6.51% | 6.51% |
9.78% fixed rate notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate, stated percentage | 9.78% | 9.78% |
5.58% weighted-average fixed rate notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, weighted average interest rate | 5.58% | 5.58% |
3.65% weighted-average fixed rate notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, weighted average interest rate | 3.65% | 3.65% |
Debt and Credit Agreements (D35
Debt and Credit Agreements (Details 2) - Revolving credit facility - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 425,000 | $ 425,000 | $ 140,000 | ||
Long-term debt, weighted average interest rate | 2.10% | 2.10% | |||
Availability under the credit facility | $ 1,400,000 | $ 1,400,000 | |||
Weighted-average effective interest rate | 2.10% | 2.20% | 2.20% | 2.20% |
Debt and Credit Agreements (D36
Debt and Credit Agreements (Details 3) - Revolving credit facility - USD ($) | Apr. 17, 2015 | Apr. 16, 2015 |
Debt Instrument [Line Items] | ||
Borrowing base | $ 3,400,000,000 | $ 3,100,000,000 |
Current borrowing capacity | 1,800,000,000 | $ 1,400,000,000 |
Debt issuance cost | 7,800,000 | |
Unamortized costs | 8,300,000 | |
Accordion Feature, Amended Facility | ||
Debt Instrument [Line Items] | ||
Borrowing base | $ 500,000,000 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Commitment fee on the unused available balance | 0.30% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Commitment fee on the unused available balance | 0.50% | |
Eurodollar LIBOR | ||
Debt Instrument [Line Items] | ||
Description of variable rate basis | Eurodollar (LIBOR) | |
Alternate base rate (ABR) | ||
Debt Instrument [Line Items] | ||
Description of variable rate basis | alternate base rate (ABR) | |
Debt Instrument Leverage Ratio Less than 1.0x | Eurodollar LIBOR | ||
Interest Rates Under Amended Credit Facility | ||
Basis spread on variable rate | 1.50% | |
Debt Instrument Leverage Ratio Less than 1.0x | Alternate base rate (ABR) | ||
Interest Rates Under Amended Credit Facility | ||
Basis spread on variable rate | 0.50% | |
Debt Instrument Leverage Ratio Greater than or Equal to 1.0x but Less than 2.0x | Eurodollar LIBOR | ||
Interest Rates Under Amended Credit Facility | ||
Basis spread on variable rate | 1.75% | |
Debt Instrument Leverage Ratio Greater than or Equal to 1.0x but Less than 2.0x | Alternate base rate (ABR) | ||
Interest Rates Under Amended Credit Facility | ||
Basis spread on variable rate | 0.75% | |
Debt Instrument Leverage Ratio Greater than or Equal to 2.0x but Less 3.0x | Eurodollar LIBOR | ||
Interest Rates Under Amended Credit Facility | ||
Basis spread on variable rate | 2.00% | |
Debt Instrument Leverage Ratio Greater than or Equal to 2.0x but Less 3.0x | Alternate base rate (ABR) | ||
Interest Rates Under Amended Credit Facility | ||
Basis spread on variable rate | 1.00% | |
Debt Instrument Leverage Ratio Greater than or Equal to 3.0x | Eurodollar LIBOR | ||
Interest Rates Under Amended Credit Facility | ||
Basis spread on variable rate | 2.25% | |
Debt Instrument Leverage Ratio Greater than or Equal to 3.0x | Alternate base rate (ABR) | ||
Interest Rates Under Amended Credit Facility | ||
Basis spread on variable rate | 1.25% |
Derivative Instruments and He37
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | Apr. 01, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Accumulated other comprehensive income (loss) | $ (2,151,000) | $ (2,151,000) | |||
Unrealized losses included in accumulated other comprehensive income and reclassified into natural gas and crude oil revenues, net of tax | $ 0 | $ 0 | |||
Ineffectiveness related to derivative instruments | $ 0 | $ 0 | |||
Commodity contracts | Gain (loss) on cash flow hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Unrealized losses included in accumulated other comprehensive income and reclassified into natural gas and crude oil revenues, pre-tax | $ 73,400,000 | ||||
Accumulated other comprehensive income (loss) | $ (44,200,000) |
Derivative Instruments and He38
Derivative Instruments and Hedging Activities - Outstanding Commodity Derivatives (Details) | 9 Months Ended |
Sep. 30, 2015$ / McfMMcf | |
Natural Gas Collars with contract period of October 2015 - December 2015 | |
Derivative [Line Items] | |
Volume (in mmcf) | MMcf | 17,900 |
Natural Gas Collars with contract period of October 2015 - December 2015 | Minimum | |
Derivative [Line Items] | |
Collar Floor Price (in usd per Mcf) | 3.86 |
Collar Ceiling Price (in usd per Mcf) | 4.27 |
Natural Gas Collars with contract period of October 2015 - December 2015 | Maximum | |
Derivative [Line Items] | |
Collar Floor Price (in usd per Mcf) | 3.91 |
Collar Ceiling Price (in usd per Mcf) | 4.43 |
Natural Gas Collars with contract period of October 2015 - December 2015 | Weighted Average | |
Derivative [Line Items] | |
Collar Floor Price (in usd per Mcf) | 3.87 |
Collar Ceiling Price (in usd per Mcf) | 4.35 |
Natural Gas Swaps with contract period of October 2015 - December 2015 | |
Derivative [Line Items] | |
Volume (in mmcf) | MMcf | 17,900 |
Natural Gas Swaps with contract period of October 2015 - December 2015 | Weighted Average | |
Derivative [Line Items] | |
Swaps Weighted Average (in usd per Mcf) | 3.92 |
Natural Gas Swaps with contract ending October 2015 | |
Derivative [Line Items] | |
Volume (in mmcf) | MMcf | 4,500 |
Natural Gas Swaps with contract ending October 2015 | Weighted Average | |
Derivative [Line Items] | |
Swaps Weighted Average (in usd per Mcf) | 3.36 |
Derivative Instruments and He39
Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | $ 48,445 | $ 137,603 |
Derivatives Not Designated as Hedges | Commodity contracts | Derivative instruments (current assets) | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | $ 48,445 | $ 137,603 |
Derivative Instruments and He40
Derivative Instruments and Hedging Activities - Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative Assets | ||
Gross amounts of recognized assets | $ 48,445 | $ 137,603 |
Gross amounts offset in the statement of financial position | 0 | 0 |
Net amounts of assets presented in the statement of financial position | 48,445 | 137,603 |
Gross amounts of financial instruments not offset in the statement of financial position | 0 | 2,338 |
Net amount | $ 48,445 | $ 139,941 |
Derivative Instruments and He41
Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | $ 0 | $ (21,557) | $ 0 | $ (115,288) |
Natural gas revenues | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 0 | (21,427) | 0 | (114,304) |
Crude oil and condensate revenues | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 0 | (130) | 0 | (984) |
Commodity contracts | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) recognized in other comprehensive income (loss) on derivative (effective portion) | $ 0 | $ 0 | $ 0 | $ (133,310) |
Derivative Instruments and He42
Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative instruments and hedging activities | ||||
Gain (loss) on derivative instruments | $ 17,364 | $ 71,906 | $ 44,668 | $ 69,577 |
Unrealized gain (loss) on derivative instruments | 44,668 | 69,577 | ||
Gain (loss) on derivative instruments | 17,364 | 50,349 | 44,668 | 25,064 |
Total | 17,364 | 50,349 | 44,668 | (45,711) |
Derivatives Designated as Hedges | ||||
Derivative instruments and hedging activities | ||||
Gain (loss) on derivative instruments | 0 | 0 | 0 | (70,775) |
Derivatives Designated as Hedges | Natural gas revenues | ||||
Derivative instruments and hedging activities | ||||
Gain (loss) on derivative instruments | 0 | 0 | 0 | (70,557) |
Derivatives Designated as Hedges | Crude oil and condensate revenues | ||||
Derivative instruments and hedging activities | ||||
Gain (loss) on derivative instruments | 0 | 0 | 0 | (218) |
Derivatives Not Designated as Hedges | ||||
Derivative instruments and hedging activities | ||||
Unrealized gain (loss) on derivative instruments | (27,733) | 31,833 | (89,159) | 44,766 |
Derivatives Not Designated as Hedges | Natural gas revenues | ||||
Derivative instruments and hedging activities | ||||
Gain (loss) on derivative instruments | 0 | (21,427) | 0 | (43,747) |
Derivatives Not Designated as Hedges | Crude oil and condensate revenues | ||||
Derivative instruments and hedging activities | ||||
Gain (loss) on derivative instruments | 0 | (130) | 0 | (766) |
Derivatives Not Designated as Hedges | Gain (loss) on derivative instruments | ||||
Derivative instruments and hedging activities | ||||
Gain (loss) on derivative instruments | $ 45,097 | $ 40,073 | $ 133,827 | $ 24,811 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities, Recurring (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Deferred compensation plan | $ 12,586 | $ 13,115 |
Derivative instruments | 48,445 | 137,603 |
Total assets | 61,031 | 150,718 |
Liabilities | ||
Deferred compensation plan | 24,263 | 28,932 |
Total liabilities | 24,263 | 28,932 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis | ||
Assets | ||
Deferred compensation plan | 12,586 | 13,115 |
Derivative instruments | 0 | 0 |
Total assets | 12,586 | 13,115 |
Liabilities | ||
Deferred compensation plan | 24,263 | |
Total liabilities | 24,263 | 28,932 |
Significant Other Observable Inputs (Level 2) | Recurring basis | ||
Assets | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 16,152 | 51,645 |
Total assets | 16,152 | 51,645 |
Liabilities | ||
Deferred compensation plan | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring basis | ||
Assets | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 32,293 | 85,958 |
Total assets | 32,293 | 85,958 |
Liabilities | ||
Deferred compensation plan | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Changes in Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy | ||
Balance at beginning of period | $ 85,958 | $ (3,910) |
Total gains (losses) (realized or unrealized): | ||
Realized and unrealized gains (losses) included in earnings | 23,867 | (33,804) |
Included in other comprehensive income | 0 | (21,068) |
Settlements | (77,532) | 74,271 |
Transfers in and/or out of Level 3 | 0 | 0 |
Balance at end of period | 32,293 | 15,489 |
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period | $ (53,665) | $ 40,467 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Additional Information) (Details) - impaired_asset_and_liability | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value Disclosures [Abstract] | ||
Number of non-financial assets and liabilities impaired | 0 | 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Other Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair value disclosures | ||
Current maturities | $ (20,000) | $ 0 |
Long-term debt, excluding current maturities | 2,017,000 | 1,752,000 |
Carrying amount | ||
Fair value disclosures | ||
Debt | 2,037,000 | 1,752,000 |
Current maturities | (20,000) | 0 |
Long-term debt, excluding current maturities | 2,017,000 | 1,752,000 |
Estimated fair value | ||
Fair value disclosures | ||
Debt | 2,007,444 | 1,850,867 |
Current maturities | (20,775) | 0 |
Long-term debt, excluding current maturities | $ 1,986,669 | $ 1,850,867 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Asset Retirement Obligation | ||
Balance at beginning of period | $ 126,655 | |
Liabilities incurred | 9,230 | |
Liabilities settled | (83) | |
Accretion expense | 5,087 | |
Balance at end of period | 140,889 | |
Current portion of asset retirement obligation | $ 2,000 | $ 2,000 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) | Feb. 20, 2014$ / shares | Sep. 30, 2015USD ($)$ / shares | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)director$ / sharesshares | Sep. 30, 2014USD ($) |
Stock-based Compensation arrangements | |||||
Stock based compensation expense | $ | $ (2,900,000) | $ 5,700,000 | $ 11,600,000 | $ 15,100,000 | |
Tax benefits realized for stock-based compensation | $ | 0 | 6,000,000 | |||
Supplemental Employee Incentive Plan IV | |||||
Stock-based Compensation arrangements | |||||
Stock based compensation expense | $ | $ (100,000) | $ 200,000 | $ (200,000) | $ 3,300,000 | |
Interim price goal (in dollars per share) | $ 55 | $ 55 | |||
Assumptions: | |||||
Stock price volatility | 39.30% | ||||
Risk free rate of return | 0.60% | ||||
Annual salary increase rate | 4.00% | ||||
Annual turnover rate | 4.60% | ||||
Restricted Stock Awards | |||||
Stock-based Compensation arrangements | |||||
Granted (in shares) | shares | 3,400 | ||||
Granted (in dollars per share) | $ 28.55 | ||||
Annual forfeiture rate assumption (as a percent) | 5.00% | ||||
Restricted Stock Units | |||||
Stock-based Compensation arrangements | |||||
Granted (in shares) | shares | 49,447 | ||||
Granted (in dollars per share) | $ 28.02 | ||||
Common stock issued (in shares) | shares | 230,068 | ||||
Common stock issued, weighted average grant date per unit value (in dollars per share) | $ 13.45 | ||||
Common stock issued, number of recipients | director | 2 | ||||
Performance Share Awards | Minimum | |||||
Stock-based Compensation arrangements | |||||
Annual forfeiture rate assumption (as a percent) | 0.00% | ||||
Performance Share Awards | Maximum | |||||
Stock-based Compensation arrangements | |||||
Annual forfeiture rate assumption (as a percent) | 5.00% | ||||
Performance Share Awards Based on Internal Performance Metrics | |||||
Stock-based Compensation arrangements | |||||
Right to receive additional shares, maximum (as a percent) | 100.00% | ||||
Employee Performance Share Awards | |||||
Stock-based Compensation arrangements | |||||
Granted (in shares) | shares | 349,780 | ||||
Granted (in dollars per share) | $ 27.71 | ||||
Number of years over which performance criteria is to be met | 3 years | ||||
Hybrid Performance Share Awards | |||||
Stock-based Compensation arrangements | |||||
Granted (in shares) | shares | 194,947 | ||||
Granted (in dollars per share) | $ 27.71 | ||||
Vesting rights | The 2015 awards vest 25% on each of the first and second anniversary dates and 50% on the third anniversary | ||||
Minimum operating cash flow for the year preceding the performance period | $ | $ 100,000,000 | ||||
Hybrid Performance Share Awards | Hybrid performance share awards, percentage vesting on each of the first and second anniversary | |||||
Stock-based Compensation arrangements | |||||
Award vesting rights, percentage | 25.00% | ||||
Hybrid Performance Share Awards | Hybrid performance share awards, percentage vesting on the third anniversary | |||||
Stock-based Compensation arrangements | |||||
Award vesting rights, percentage | 50.00% | ||||
Performance Shares Based on Market Conditions | |||||
Stock-based Compensation arrangements | |||||
Right to receive shares (as a percent) | 100.00% | ||||
Right to receive an additional award in cash (as a percent) | 100.00% | ||||
TSR Performance Share Awards | |||||
Stock-based Compensation arrangements | |||||
Granted (in shares) | shares | 292,421 | ||||
Granted (in dollars per share) | $ 19.29 | ||||
Performance period | 3 years | ||||
Assumptions: | |||||
Fair value per performance share award, minimum (in dollars per share) | $ 7.66 | ||||
Fair value per performance share award, maximum(in dollars per share) | $ 10.04 | ||||
Stock price volatility | 32.30% | ||||
Stock price volatility, minimum | 29.80% | ||||
Stock price volatility, maximum | 39.20% | ||||
Risk free rate of return | 1.00% | ||||
Risk free rate of return, minimum | 0.00% | ||||
Risk free rate of return, maximum | 0.70% | ||||
Expected dividend yield | 0.30% | 0.40% |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted-average shares - basic | 413,846 | 416,173 | 413,636 | 416,785 |
Dilution effect of stock appreciation rights and stock awards at end of period (in shares) | 0 | 1,920 | 0 | 1,683 |
Weighted-average shares - diluted | 413,846 | 418,093 | 413,636 | 418,468 |
Weighted-average stock awards and shares excluded from diluted EPS due to the anti-dilutive effect | 1,692 | 0 | 1,390 | 461 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | ||||
Natural gas revenues | $ 222,963 | $ 347,970 | $ 807,960 | $ 1,218,540 |
Crude oil and condensate revenues | 59,014 | 82,563 | 202,804 | 228,047 |
Total before tax | (25,534) | 172,919 | (4,936) | 545,167 |
Tax benefit (expense) | 10,020 | (72,131) | 2,169 | (218,928) |
NET INCOME (LOSS) | (15,514) | 100,788 | (2,767) | 326,239 |
Amount reclassified from accumulated other comprehensive income | ||||
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | ||||
Total before tax | 0 | (21,557) | 0 | (115,288) |
Tax benefit (expense) | 0 | 8,592 | 0 | 45,951 |
NET INCOME (LOSS) | 0 | (12,965) | 0 | (69,337) |
Gain (loss) on cash flow hedges | Amount reclassified from accumulated other comprehensive income | Commodity contracts | ||||
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | ||||
Natural gas revenues | 0 | (21,427) | 0 | (114,304) |
Crude oil and condensate revenues | $ 0 | $ (130) | $ 0 | $ (984) |
Additional Balance Sheet Info51
Additional Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts receivable, net | ||
Trade accounts | $ 114,154 | $ 227,835 |
Joint interest accounts | 1,585 | 2,245 |
Other accounts | 5,001 | 6,515 |
Receivables Gross Current | 120,740 | 236,595 |
Allowance for doubtful accounts | (997) | (1,198) |
Accounts receivable, net | 119,743 | 235,397 |
Inventories | ||
Tubular goods and well equipment | 15,016 | 10,675 |
Natural gas in storage | 3,205 | 3,281 |
Other accounts | 62 | 70 |
Inventories | 18,283 | 14,026 |
Other assets | ||
Deferred compensation plan | 12,586 | 13,115 |
Debt issuance costs | 21,791 | 17,349 |
Other accounts | 62 | 65 |
Other assets | 34,439 | 30,529 |
Accounts payable | ||
Trade accounts | 33,312 | 54,949 |
Natural gas purchases | 1,859 | 2,407 |
Royalty and other owners | 75,976 | 97,298 |
Accrued capital costs | 63,324 | 222,426 |
Taxes other than income | 12,432 | 16,806 |
Drilling advances | 81 | 88 |
Other accounts | 4,357 | 6,102 |
Accounts payable current | 191,341 | 400,076 |
Accrued liabilities | ||
Employee benefits | 12,501 | 22,815 |
Taxes other than income | 10,694 | 7,128 |
Interest payable | 13,595 | 30,677 |
Other accounts | 2,333 | 3,049 |
Accrued liabilities | 39,123 | 63,669 |
Other liabilities | ||
Deferred compensation plan | 24,263 | 28,932 |
Other accounts | 4,478 | 10,675 |
Other liabilities | $ 28,741 | $ 39,607 |