Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
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-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 475,138,587 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 11.8 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 498,542 | $ 514 |
Accounts receivable, net | 191,045 | 120,229 |
Income taxes receivable | 10,298 | 4,323 |
Inventories | 13,304 | 17,049 |
Other current assets | 2,692 | 2,671 |
Total current assets | 715,881 | 144,786 |
Properties and equipment, net (Successful efforts method) | 4,250,125 | 4,976,879 |
Equity method investments | 129,524 | 103,517 |
Other assets | 27,039 | 27,856 |
TOTAL ASSETS | 5,122,569 | 5,253,038 |
Current liabilities | ||
Accounts payable | 168,411 | 160,407 |
Current portion of long-term debt | 0 | 20,000 |
Accrued liabilities | 21,492 | 24,923 |
Interest payable | 27,650 | 30,222 |
Derivative instruments | 40,259 | 0 |
Total current liabilities | 257,812 | 235,552 |
Long-term debt, net | 1,520,530 | 1,996,139 |
Deferred income taxes | 579,447 | 807,236 |
Asset retirement obligations | 131,733 | 143,606 |
Postretirement benefits | 36,259 | 35,293 |
Other liabilities | 29,121 | 26,024 |
Total liabilities | 2,554,902 | 3,243,850 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock: Authorized -- 960,000,000 shares of $0.10 par value in 2016 and 2015 Issued - 423,768,593 and 423,768,593 shares in 2016 and 2015, respectively | 47,504 | 42,377 |
Additional paid-in capital | 1,727,310 | 721,997 |
Retained earnings | 1,098,703 | 1,552,014 |
Accumulated other comprehensive income (loss) | 985 | (365) |
Less treasury stock, at cost: 9,892,680 shares in 2016 and 2015, respectively | (306,835) | (306,835) |
Total stockholders' equity | 2,567,667 | 2,009,188 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 5,122,569 | $ 5,253,038 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, authorized (in shares) | 960,000,000 | 960,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, issued (in shares) | 475,042,692 | 423,768,593 |
Treasury stock (in shares) | 9,892,680 | 9,892,680 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING REVENUES | |||
Natural gas | $ 1,022,590 | $ 1,025,044 | $ 1,590,625 |
Crude oil and condensate | 151,106 | 248,211 | 313,889 |
Gain (loss) on derivative instruments | (38,950) | 56,686 | 219,319 |
Brokered natural gas | 13,569 | 16,383 | 34,416 |
Other | 7,362 | 10,826 | 14,762 |
TOTAL OPERATING REVENUES | 1,155,677 | 1,357,150 | 2,173,011 |
OPERATING EXPENSES | |||
Direct operations | 100,696 | 140,814 | 145,529 |
Transportation and gathering | 436,542 | 427,588 | 349,321 |
Brokered natural gas | 10,785 | 12,592 | 30,030 |
Taxes other than income | 29,223 | 42,809 | 47,012 |
Exploration | 27,662 | 27,460 | 28,746 |
Depreciation, depletion and amortization | 590,128 | 622,211 | 632,760 |
Impairment of oil and gas properties and other assets | 435,619 | 114,875 | 771,037 |
General and administrative | 87,242 | 69,444 | 82,590 |
TOTAL OPERATING EXPENSES | 1,717,897 | 1,457,793 | 2,087,025 |
Earnings (loss) on equity method investments | (2,477) | 6,415 | 3,080 |
Gain (loss) on sale of assets | (1,857) | 3,866 | 17,120 |
INCOME (LOSS) FROM OPERATIONS | (566,554) | (90,362) | 106,186 |
Loss on debt extinguishment | 4,709 | 0 | 0 |
Interest expense | 88,336 | 96,911 | 73,785 |
Income (loss) before income taxes | (659,599) | (187,273) | 32,401 |
Income tax benefit | (242,475) | (73,382) | (72,067) |
NET INCOME (LOSS) | $ (417,124) | $ (113,891) | $ 104,468 |
Earnings (loss) per share | |||
Basic (in dollars per share) | $ (0.91) | $ (0.28) | $ 0.25 |
Diluted (in dollars per share) | $ (0.91) | $ (0.28) | $ 0.25 |
Weighted-average common shares outstanding | |||
Basic (in shares) | 456,847 | 413,696 | 415,840 |
Diluted (in shares) | 456,847 | 413,696 | 417,601 |
Dividends per common share (in dollars per share) | $ 0.0792105667127805 | $ 0.08 | $ 0.08 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (417,124) | $ (113,891) | $ 104,468 | |
Other comprehensive income, net of taxes: | ||||
Reclassification adjustment for settled cash flow hedge contracts | [1] | 0 | 0 | 86,726 |
Changes in fair value of cash flow hedge contracts | [2] | 0 | 0 | (80,175) |
Postretirement benefits: | ||||
Net gain (loss) | [3] | 1,794 | 1,786 | (325) |
Prior service cost | [4] | (514) | 0 | 0 |
Amortization of prior service cost | [5] | 70 | 0 | 0 |
Amortization of net (gain) loss | [6] | 0 | 0 | (16) |
Total other comprehensive income | 1,350 | 1,786 | 6,210 | |
Comprehensive income (loss) | $ (415,774) | $ (112,105) | $ 110,678 | |
[1] | Net of income taxes of $(57,477) for the year ended December 31, 2014. | |||
[2] | Net of income taxes of $53,135 for the year ended December 31, 2014. | |||
[3] | Net of income taxes of $(1,052), $(1,043) and $48 for the year ended December 31, 2016, 2015 and 2014, respectively. | |||
[4] | Net of income taxes of $301 for the year ended December 31, 2016. | |||
[5] | Net of income taxes of $(41) for the year ended December 31, 2016. | |||
[6] | Net of income taxes of $10 for the year ended December 31, 2014. |
CONSOLIDATED STATEMENT OF COMP6
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Reclassification adjustment for settled hedge contracts, income taxes | $ (57,477) | ||
Changes in fair value of hedge contracts, income taxes | 53,135 | ||
Postretirement benefits: | |||
Net gain / (loss), income taxes | $ (1,052) | $ (1,043) | 48 |
Amortization of prior service cost, income taxes | (41) | ||
Prior service cost, income taxes | $ 301 | ||
Amortization of net income (loss), income taxes | $ 10 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ (417,124) | $ (113,891) | $ 104,468 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depreciation, depletion and amortization | 590,128 | 622,211 | 632,760 |
Impairment of oil and gas properties and other assets | 435,619 | 114,875 | 771,037 |
Deferred income tax benefit | (230,707) | (72,968) | (112,567) |
(Gain) loss on sale of assets | 1,857 | (3,866) | (17,120) |
Exploratory dry hole cost | 10,120 | 3,452 | 7,907 |
(Gain) loss on derivative instruments | 38,950 | (56,686) | (219,319) |
Net cash received (paid) in settlement of derivative instruments | (1,682) | 194,289 | 81,716 |
(Earnings) loss on equity method investments | 2,477 | (6,415) | (3,080) |
Amortization of debt issuance costs | 5,083 | 4,454 | 4,754 |
Stock-based compensation and other | 25,982 | 13,645 | 21,429 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (71,060) | 112,406 | (11,689) |
Income taxes | (5,975) | (711) | (34,282) |
Inventories | 3,044 | (3,023) | 3,441 |
Other current assets | (21) | (817) | 733 |
Accounts payable and accrued liabilities | 5,794 | (64,078) | (7,583) |
Interest payable | (2,573) | (455) | 10,466 |
Other assets and liabilities | 2,465 | (1,685) | 1,989 |
Stock-based compensation tax benefit | 0 | 0 | 1,375 |
Net cash provided by operating activities | 392,377 | 740,737 | 1,236,435 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | (375,153) | (955,602) | (1,479,632) |
Acquisitions | 0 | (16,312) | (214,737) |
Proceeds from sale of assets | 50,419 | 7,653 | 39,492 |
Restricted cash | 0 | 0 | 28,094 |
Investment in equity method investments | (28,484) | (29,073) | (38,057) |
Net cash used in investing activities | (353,218) | (993,334) | (1,664,840) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Borrowings from debt | 90,000 | 877,000 | 2,032,000 |
Repayments of debt | (587,000) | (604,000) | (1,427,000) |
Treasury stock repurchases | 0 | 0 | (138,852) |
Sale of common stock, net | 995,279 | 0 | 0 |
Dividends paid | (36,187) | (33,090) | (33,278) |
Stock-based compensation tax benefit | 0 | 0 | (1,375) |
Capitalized debt issuance costs | (3,223) | (7,838) | (5,626) |
Other | 0 | 85 | 90 |
Net cash provided by financing activities | 458,869 | 232,157 | 425,959 |
Net increase (decrease) in cash and cash equivalents | 498,028 | (20,440) | (2,446) |
Cash and cash equivalents, beginning of period | 514 | 20,954 | 23,400 |
Cash and cash equivalents, end of period | $ 498,542 | $ 514 | $ 20,954 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at beginning of period at Dec. 31, 2013 | $ 2,204,602 | $ 42,201 | $ (167,983) | $ 710,940 | $ (8,361) | $ 1,627,805 |
Balance (in shares) at Dec. 31, 2013 | 422,015,000 | 5,618,000 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 104,468 | 104,468 | ||||
Stock amortization and vesting | 958 | $ 91 | 867 | |||
Stock-based compensation | (1,375) | (1,375) | ||||
Stock amortization and vesting (in shares) | 900,000 | |||||
Purchase of treasury stock | $ (138,852) | $ (138,852) | ||||
Purchase of treasury stock (in shares) | 4,300,000 | 4,275,000 | ||||
Cash dividends at $0.08, $0.08 and $0.06 per share for the year ended December 31, 2015, 2014 and 2013, respectively | $ (33,278) | (33,278) | ||||
Other comprehensive income (loss) | 6,210 | 6,210 | ||||
Balance at end of period at Dec. 31, 2014 | 2,142,733 | $ 42,292 | $ (306,835) | 710,432 | (2,151) | 1,698,995 |
Balance (in shares) at Dec. 31, 2014 | 422,915,000 | 9,893,000 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (113,891) | (113,891) | ||||
Exercise of stock appreciation rights | (942) | $ 4 | (946) | |||
Exercise of stock appreciation rights (in shares) | 40,000 | |||||
Stock amortization and vesting | $ 12,592 | $ 81 | 12,511 | |||
Stock amortization and vesting (in shares) | 814,000 | |||||
Purchase of treasury stock (in shares) | 0 | |||||
Cash dividends at $0.08, $0.08 and $0.06 per share for the year ended December 31, 2015, 2014 and 2013, respectively | $ (33,090) | (33,090) | ||||
Other comprehensive income (loss) | 1,786 | 1,786 | ||||
Balance at end of period at Dec. 31, 2015 | 2,009,188 | $ 42,377 | $ (306,835) | 721,997 | (365) | 1,552,014 |
Balance (in shares) at Dec. 31, 2015 | 423,769,000 | 9,893,000 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (417,124) | (417,124) | ||||
Issuance of common stock (in shares) | 50,600,000 | |||||
Issuance of common stock | 995,289 | $ 5,060 | 990,229 | |||
Exercise of stock appreciation rights | (198) | $ 3 | (201) | |||
Exercise of stock appreciation rights (in shares) | 28,000 | |||||
Stock amortization and vesting | 16,931 | $ 64 | 16,867 | |||
Sale of stock held in rabbi trust | 544 | 544 | ||||
Stock-based compensation | $ (2,126) | (2,126) | ||||
Stock amortization and vesting (in shares) | 646,000 | |||||
Purchase of treasury stock (in shares) | 0 | |||||
Cash dividends at $0.08, $0.08 and $0.06 per share for the year ended December 31, 2015, 2014 and 2013, respectively | $ (36,187) | (36,187) | ||||
Other comprehensive income (loss) | 1,350 | 1,350 | ||||
Balance at end of period at Dec. 31, 2016 | $ 2,567,667 | $ 47,504 | $ (306,835) | $ 1,727,310 | $ 985 | $ 1,098,703 |
Balance (in shares) at Dec. 31, 2016 | 475,043,000 | 9,893,000 |
CONSOLIDATED STATEMENT OF STOC9
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, per share (in dollars per share) | $ 0.08 | $ 0.08 | $ 0.08 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Nature of Operations Cabot Oil & Gas Corporation and its subsidiaries (the Company) are engaged in the development, exploitation, exploration, production and marketing of natural gas, oil and, to a lesser extent, NGLs exclusively within the continental United States. The Company also transports, stores, gathers and purchases natural gas for resale. The Company's exploration and development activities are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. The Company operates in one segment, natural gas and oil development, exploitation and exploration. The Company's oil and gas properties are managed as a whole rather than through discrete operating segments or business units. Operational information is tracked by geographic area; however, financial performance is assessed as a single enterprise and not on a geographic basis. Allocation of resources is made on a project basis across the Company's entire portfolio without regard to geographic areas. The consolidated financial statements include the accounts of the Company and its subsidiaries after eliminating all significant intercompany balances and transactions. Certain reclassifications have been made to prior year statements to conform with current year presentation. These reclassifications have no impact on previously reported stockholders' equity, net income (loss) or cash flows. Significant Accounting Policies Cash and Cash Equivalents The Company considers all highly liquid short-term investments with a maturity of three months or less and deposits in money market funds that are readily convertible to cash to be cash equivalents. Cash and cash equivalents were primarily concentrated in two financial institutions at December 31, 2016 . The Company periodically assesses the financial condition of its financial institutions and considers any possible credit risk to be minimal. Allowance for Doubtful Accounts The Company records an allowance for doubtful accounts for receivables that the Company determines to be uncollectible based on the specific identification method. Inventories Inventories are comprised of natural gas in storage, tubular goods and well equipment and pipeline imbalances. Natural gas in storage and tubular goods and well equipment balances are carried at average cost. Natural gas gathering and pipeline operations normally include imbalance arrangements with the pipeline. The volumes of natural gas due to or from the Company under imbalance arrangements are recorded at actual selling or purchase prices, as the case may be, and are adjusted monthly to market prices. Equity Method Investments The Company accounts for its investments in entities over which the Company has significant influence, but not control, using the equity method of accounting. Under the equity method of accounting, the Company increases its investment for contributions made and records its proportionate share of net earnings, declared dividends and partnership distributions based on the most recently available financial statements of the investee. The Company records the activity for its equity method investments on a one month lag. In addition, the Company evaluates its equity method investments for potential impairment whenever events or changes in circumstances indicate that there is an other-than-temporary decline in the value of the investment. Properties and Equipment The Company uses the successful efforts method of accounting for oil and gas producing activities. Under this method, acquisition costs for proved and unproved properties are capitalized when incurred. Exploration costs, including geological and geophysical costs, the costs of carrying and retaining unproved properties and exploratory dry hole drilling costs, are expensed. Development costs, including the costs to drill and equip development wells and successful exploratory drilling costs to locate proved reserves are capitalized. Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves. The determination is based on a process which relies on interpretations of available geologic, geophysical, and engineering data. If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well. If a well is determined to be unsuccessful, the capitalized drilling costs will be charged to exploration expense in the Consolidated Statement of Operations in the period the determination is made. If an exploratory well requires a major capital expenditure before production can begin, the cost of drilling the exploratory well will continue to be carried as an asset pending determination of whether reserves have been found only as long as: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well if the required capital expenditure is made and (ii) drilling of an additional exploratory well is under way or firmly planned for the near future. If drilling in the area is not under way or firmly planned, or if the well has not found a commercially producible quantity of reserves, the exploratory well is assumed to be impaired and its costs are charged to exploration expense. Development costs of proved oil and gas properties, including estimated dismantlement, restoration and abandonment costs and acquisition costs, are depreciated and depleted on a field basis by the units-of-production method using proved developed and proved reserves, respectively. Properties related to gathering and pipeline systems and equipment are depreciated using the straight-line method based on estimated useful lives ranging from 10 to 25 years. Generally pipeline and transmission systems are depreciated over 12 to 25 years, gathering and compression equipment is depreciated over 10 years and storage equipment and facilities are depreciated over 10 to 16 years. Buildings are depreciated on a straight-line basis over 25 to 40 years. Certain other assets are depreciated on a straight-line basis over 3 to 10 years. Costs of sold or abandoned properties that make up a part of an amortization base (partial field) remain in the amortization base if the units-of-production rate is not significantly affected. If significant, a gain or loss, if any, is recognized and the sold or abandoned properties are retired. A gain or loss, if any, is also recognized when a group of proved properties (entire field) that make up the amortization base has been retired, abandoned or sold. The Company evaluates its proved oil and gas properties for impairment whenever events or changes in circumstances indicate an asset's carrying amount may not be recoverable. The Company compares expected undiscounted future cash flows to the net book value of the asset. If the future undiscounted expected cash flows, based on estimates of future natural gas and crude oil prices, operating costs and anticipated production from proved reserves and risk-adjusted probable and possible reserves, are lower than the net book value of the asset, the capitalized cost is reduced to fair value. Commodity pricing is estimated by using a combination of assumptions management uses in its budgeting and forecasting process as well as historical and current prices adjusted for geographical location and quality differentials, as well as other factors that management believes will impact realizable prices. Fair value is calculated by discounting the future cash flows. The discount factor used is based on rates utilized by market participants that are commensurate with the risks inherent in the development and production of the underlying natural gas and oil. Unproved oil and gas properties are assessed periodically for impairment on an aggregate basis through periodic updates to the Company's undeveloped acreage amortization based on past drilling and exploration experience, the Company's expectation of converting leases to held by production and average property lives. Average property lives are determined on a geographical basis and based on the estimated life of unproved property leasehold rights. During 2016 , 2015 and 2014 , amortization associated with the Company's unproved properties was $25.0 million , $41.4 million and $17.4 million , respectively, and is included in depreciation, depletion, and amortization in the Consolidated Statement of Operations. Asset Retirement Obligations The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset. The asset retirement costs are depreciated using the units-of-production method. The majority of the asset retirement obligations recorded by the Company relate to the plugging and abandonment of oil and gas wells. However, liabilities are also recorded for meter stations, pipelines, processing plants and compressors. At December 31, 2016 , there were no assets legally restricted for purposes of settling asset retirement obligations. Additional retirement obligations increase the liability associated with new oil and gas wells and other facilities as these obligations are incurred. Accretion expense is included in depreciation, depletion and amortization expense in the Consolidated Statement of Operations. Derivative Instruments and Hedging Activities The Company enters into derivative contracts, primarily swaps, collars and basis swaps, to manage its exposure to price fluctuations on a portion of its anticipated future natural gas and oil production. The Company’s credit agreement restricts the ability of the Company to enter into commodity derivatives other than to hedge or mitigate risks to which the Company has actual or projected exposure or as permitted under the Company’s risk management policies and where such derivatives do not subject the Company to material speculative risks. All of the Company’s derivatives are used for risk management purposes and are not held for trading purposes. All derivatives are recognized on the balance sheet and are measured at fair value. At the end of each quarterly period, these derivatives are marked-to-market. If the derivative does not qualify or is not designated as a cash flow hedge, changes in the fair value of the derivative are recognized in income. If the derivative qualifies and is designated as a cash flow hedge, changes in the fair value of the derivative are deferred in accumulated other comprehensive income to the extent the hedge is effective. For derivatives that qualify and are designated as a cash flow hedges, the hedging relationship between the hedging instruments and hedged items must be highly effective in achieving the offset of changes in cash flows attributable to the hedged risk, both at the inception of the hedge and on an ongoing basis. The Company measures hedge effectiveness on a quarterly basis. Hedge accounting is discontinued prospectively if and when a hedging instrument becomes ineffective. Gains and losses deferred in accumulated other comprehensive income related to cash flow hedges that become ineffective remain unchanged until the related production occurs. If the Company determines that it is probable that a forecasted hedged transaction will not occur, deferred gains or losses on the related hedging instrument are recognized in income immediately. Gains and losses on derivatives designated as cash flow hedges are included in natural gas and crude oil and condensate revenues. Gains and losses on derivatives which represent hedge ineffectiveness and gains and losses on derivatives not designated or that do not qualify for hedge accounting are included in operating revenues in gain (loss) on derivative instruments. The resulting cash flows are reported as cash flows from operating activities. Fair Value of Assets and Liabilities The Company follows the authoritative accounting guidance for measuring fair value of assets and liabilities in its financial statements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. The Company is able to classify fair value balances based on the observability of these inputs. The authoritative guidance for fair value measurements establishes three levels of the fair value hierarchy, defined as follows: • Level 1: Unadjusted, quoted prices for identical assets or liabilities in active markets. • Level 2: Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly for substantially the full term of the asset or liability. • Level 3: Significant, unobservable inputs for use when little or no market data exists, requiring a significant degree of judgment. The hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. Depending on the particular asset or liability, input availability can vary depending on factors such as product type, longevity of a product in the market and other particular transaction conditions. In some cases, certain inputs used to measure fair value may be categorized into different levels of the fair value hierarchy. For disclosure purposes under the accounting guidance, the lowest level that contains significant inputs used in the valuation should be chosen. Revenue Recognition Natural gas and oil sales result from interests in oil and gas properties owned by the Company. Sales of natural gas and oil are recognized when the product is delivered and title transfers to the purchaser. Payment is generally received one to three months after the sale has occurred. Producer Gas Imbalances. The Company applies the sales method of accounting for natural gas revenue. Under this method, revenues are recognized based on the actual volume of natural gas sold to purchasers. Natural gas production operations may include joint owners who take more or less than the production volumes entitled to them on certain properties. Production volume is monitored to minimize these natural gas imbalances. Under this method, a natural gas imbalance liability is recorded if the Company's excess takes of natural gas exceed its estimated remaining proved developed reserves for these properties at the actual price realized upon the gas sale. A receivable is recognized only to the extent an imbalance cannot be recouped from the reserves in the underlying properties. The Company’s aggregate imbalance positions at December 31, 2016 and 2015 were not material. Brokered Natural Gas. Revenues and expenses related to brokering natural gas are reported gross as part of operating revenues and operating expenses in accordance with applicable accounting standards. The Company buys and sells natural gas utilizing separate purchase and sale transactions, typically with separate counterparties, whereby the Company and/or the counterparty takes title to the natural gas purchased or sold. Income Taxes The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the estimated future tax consequences attributable to the differences between the financial carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. The Company is required to make judgments, including estimating reserves for potential adverse outcomes regarding tax positions that the Company has taken. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return. The tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination by taxing authorities based on technical merits of the position. The amount of the tax benefit recognized is the largest amount of the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The effective tax rate and the tax basis of assets and liabilities reflect management's estimates of the ultimate outcome of various tax uncertainties. The Company recognizes accrued interest related to uncertain tax positions in interest expense and accrued penalties related to such positions in general and administrative expense in the Consolidated Statement of Operations. Stock-Based Compensation The Company accounts for stock-based compensation under the fair value method of accounting. Under this method, compensation cost is measured at the grant date for equity-classified awards and remeasured each reporting period for liability-classified awards based on the fair value of an award and is recognized over the service period, which is generally the vesting period. To calculate fair value, the Company uses either a Monte Carlo or Black-Scholes valuation model depending on the specific provisions of the award. Stock-based compensation cost for all types of awards is included in general and administrative expense in the Consolidated Statement of Operations. The tax benefit for stock-based compensation is included as both a cash outflow from operating activities and a cash inflow from financing activities in the Consolidated Statement of Cash Flows. The Company recognizes a tax benefit only to the extent it reduces the Company's income taxes payable. Environmental Matters Environmental expenditures are expensed or capitalized, as appropriate, depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations, and that do not have future economic benefit are expensed. Liabilities related to future costs are recorded on an undiscounted basis when environmental assessments and/or remediation activities are probable and the costs can be reasonably estimated. Any insurance recoveries are recorded as assets when received. Credit and Concentration Risk Substantially all of the Company's accounts receivable result from the sale of natural gas and oil and joint interest billings to third parties in the oil and gas industry. This concentration of purchasers and joint interest owners may impact the Company's overall credit risk, either positively or negatively, in that these entities may be similarly affected by changes in economic or other conditions. The Company does not anticipate any material impact on its financial results due to non-performance by the third parties. During the years ended December 31, 2016 , 2015 and 2014 , two customers accounted for approximately 19% and 10% , two customers accounted for approximately 16% and 14% and two customers accounted for approximately 14% and 10% , respectively, of the Company's total sales. The Company does not believe that the loss of any of these customers would have a material adverse effect because alternative customers are readily available. Use of Estimates In preparing financial statements, the Company follows accounting principles generally accepted in the United States. These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The most significant estimates pertain to proved natural gas and oil reserves and related cash flow estimates which are used to compute depreciation, depletion and amortization and impairments of proved oil and gas properties. Other significant estimates include natural gas and oil revenues and expenses, fair value of derivative instruments, estimates of expenses related to legal, environmental and other contingencies, asset retirement obligations, postretirement obligations, stock-based compensation and deferred income taxes. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements Debt Issuance Costs. 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. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. The update provides authoritative guidance for debt issuance costs related to line-of-credit arrangements, noting the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The guidance is effective for interim and annual periods beginning after December 15, 2015. Effective January 1, 2016, the Company adopted ASU No. 2015-03 as a change in accounting principle. The Consolidated Balance Sheet as of December 31, 2015 has been retrospectively adjusted to reflect the adoption of this guidance, resulting in a decrease of $8.9 million in both other assets and long-term debt related to the debt issuance costs on the Company's senior notes. There was no impact to the Company's Consolidated Statement of Operations or Statement of Cash Flows. Going Concern. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern. This guidance requires management to evaluate, for each reporting period, whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued. Management will have to make certain disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the entity’s ability to continue as a going concern. This guidance is effective for annual reporting periods ending after December 15, 2016, and for annual periods and interim periods thereafter, with earlier adoption permitted. Effective December 31, 2016, the Company adopted ASU No. 2014-15. The adoption of this guidance did not have an impact on the Company's Consolidated Financial Statements or Notes to the Consolidated Financial Statements. Recently Issued Accounting Pronouncements Financial Instruments. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall, as an amendment to Accounting Standards Codification (ASC) Subtopic 825-10. The amendments in this update address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Among other items, this update will simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. This impairment assessment reduces the complexity of the other-than-temporary impairment guidance that entities follow currently. The guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption of this amendment is not permitted. The adoption of this guidance will change the methodology that the Company uses to evaluate its equity method investments for impairment. The Company is currently evaluating the effect that adopting this guidance will have on its financial position, results of operation or cash flows. Stock-Based Compensation. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, as an amendment to ASC Topic 718. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted. An entity that elects early adoption must adopt all of the amendments in the same period. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. An entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. The Company adopted this guidance effective January 1, 2017. The recognition of previously unrecognized windfall tax benefits resulted in a cumulative-effect adjustment of $42.2 million , which increased retained earnings and decreased net deferred tax liabilities by the same amount as of the beginning of 2017. Effective January 1, 2017, cash paid by the Company when directly withholding shares from employee awards for tax-withholding purposes will be classified as a financing activity. This change will be recognized retrospectively beginning January 1, 2017. The effect of this change resulted in an increase in net cash provided by operating activities of $5.1 million and $8.9 million for the years ended December 31, 2016 and 2015 , respectively. In addition, net cash provided by financing activities decreased by $5.1 million and $8.9 million for the years ended December 31, 2016 and 2015 , respectively. The remaining provisions of this amendment will not have a material effect on the Company's financial position or results of operations. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases, as a new Topic, ASC Topic 842. The new lease guidance supersedes Topic 840. The core principle of the guidance is that a company should recognize the assets and liabilities that arise from leases. This ASU does not apply to leases to explore for or use minerals, oil, natural gas and similar nonregenerative resources, including the intangible right to explore for those natural resources and rights to use the land in which those natural resources are contained. The guidance is effective for interim and annual periods beginning after December 15, 2018. This ASU can be adopted using a modified retrospective approach. The Company is currently evaluating the effect that adopting this guidance will have on its financial position, results of operations or cash flows. Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as a new Topic, ASC 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. Additionally, in March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus agent considerations (reporting revenue gross versus net), which clarifies the implementation guidance on principal versus agent considerations on such matters. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying performance obligations and licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-scope improvements and practical expedients, which addresses narrow-scope improvements to the guidance on collectibility, non-cash consideration, and completed contracts at transition. Additionally, the amendments in this update provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which clarifies the guidance or corrects unintended application of guidance. The Company is currently evaluating the effect that adopting this guidance will have on its financial position, results of operations or cash flows. Statement of Cash Flows. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance addresses eight specific cash flow issues for which current GAAP is either unclear or does not include specific guidance. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted, provided that all of the amendments are adopted in the same period. This ASU must be adopted using a retrospective transition method. The Company is currently evaluating the effect that adopting this guidance will have on its presentation of cash flows. Adopting the guidance is expected to have no effect on the Company's financial position or results of operations. Accounting Changes and Error Corrections. In January 2017, the FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Venture (Topic 323), which states that registrants should consider additional qualitative disclosures if the impact of an issued but not yet adopted ASU is unknown or cannot be reasonably estimated and to include a description of the effect of the accounting policies that the registrant expects to apply, if determined. Transition guidance in certain issued but not yet adopted ASUs, including Leases and Revenue Recognition, was also updated to reflect this amendment. This guidance is effective immediately. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions In December 2014, the Company completed the acquisition of certain proved and unproved oil and gas properties in the Eagle Ford Shale in south Texas for $30.5 million . Total net cash consideration paid by the Company was $29.9 million , which reflects the impact of customary purchase price adjustments and acquisition costs. In October 2014, the Company completed the acquisition of certain proved and unproved oil and gas properties in the Eagle Ford Shale in south Texas. Total net cash consideration paid by the Company was $185.2 million , which reflects the purchase price of $210.0 million , adjusted by $17.4 million for properties that the seller was unable to obtain consents for certain leaseholds prior to closing and $7.4 million for the impact of customary purchase price adjustments and acquisition costs. In addition, the Company also assumed a liability of $1.2 million related to asset retirement obligations of the wells acquired. In April 2015, the Company completed the acquisition of the remaining oil and gas properties for which the seller was unable to obtain consents at closing for $16.0 million . The Company accounted for these transactions as an asset purchase, whereby the identifiable assets acquired were recorded at cost, with the respective assigned carrying amount based on the relative fair value of the unproved and proved properties at the acquisition date. The fair value measurement of assets acquired was based on inputs that are not observable in the market and therefore represent Level 3 inputs. The fair value of oil and gas properties were measured using discounted future cash flows. The discount factor used was based on rates utilized by market participants that are commensurate with the risks inherent in the development and production of the underlying natural gas and oil. Significant inputs to the valuation of oil and gas properties include (i) reserves, including risk adjustments for probable and possible reserves; (ii) production rates based on the Company's experience with similar properties in which it operates; (iii) estimated future operating and development costs; (iv) future commodity prices; (v) future cash flows; and (vi) a market-based weighted average cost of capital rate of 10.0% . Divestitures The Company recognized an aggregate net gain (loss) on sale of assets of $(1.9) million , $3.9 million and $17.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. In February 2016, the Company completed the divestiture of certain proved and unproved oil and gas properties in east Texas for $56.4 million and recognized a $0.5 million gain on sale of assets. The purchase price included a $6.3 million deposit that was received in the fourth quarter of 2015. In October 2014, the Company completed the divestiture of certain proved and unproved oil and gas properties in east Texas to a third party for $44.3 million and recognized a $19.9 million gain on sale of assets. |
Properties and Equipment, Net
Properties and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment, Net | Properties and Equipment, Net Properties and equipment, net are comprised of the following: December 31, (In thousands) 2016 2015 Proved oil and gas properties $ 7,437,604 $ 8,821,146 Unproved oil and gas properties 260,543 390,434 Gathering and pipeline systems 187,846 243,672 Land, building and other equipment 84,462 117,848 7,970,455 9,573,100 Accumulated depreciation, depletion and amortization (3,720,330 ) (4,596,221 ) $ 4,250,125 $ 4,976,879 Impairment In December 2016, the Company recorded an impairment of $435.6 million associated with oil and gas properties and related pipeline assets located in West Virginia and Virginia . The impairment of these properties and the related pipeline assets was due to the carrying value of these assets exceeding the expected undiscounted cash flows of the underlying assets. These assets were reduced to fair value of approximately $89.2 million . In December 2015, the Company recorded an impairment of $114.9 million associated with oil and gas properties in certain non-core fields in south Texas, east Texas and Louisiana . The impairment of these fields was due to a significant decline in commodity prices in late 2015. These fields were reduced to fair value of approximately $89.9 million using discounted future cash flows. In December 2014, the Company recorded a $771.0 million impairment of oil and gas properties in certain non-core fields, primarily in east Texas. The impairment of these fields was due to a significant decline in commodity prices in late 2014 and management's decision not to pursue any further activity in these non-core areas in the current price environment. These fields were reduced to fair value of approximately $86.5 million using discounted future cash flows. The fair value of the impaired properties was based on significant inputs that were not observable in the market and are considered to be Level 3 inputs as defined by ASC 820. Refer to Note 1 for a description of fair value hierarchy. Key assumptions included (i) reserves, including risk adjustments for probable and possible reserves; (ii) production rates based on the Company's experience with similar properties in which it operates; (iii) estimated future operating and development costs; (iv) future commodity prices; (v) future cash flows; and (vi) a market-based weighted average cost of capital rate of 10% . Capitalized Exploratory Well Costs The following table reflects the net changes in capitalized exploratory well costs: Year Ended December 31, (In thousands) 2016 2015 2014 Balance at beginning of period $ — $ 10,557 $ — Additions to capitalized exploratory well costs pending the determination of proved reserves — 10,557 Reclassifications to wells, facilities, and equipment based on the determination of proved reserves — (10,557 ) — Capitalized exploratory well costs charged to expense — — — Balance at end of period $ — $ — $ 10,557 As of December 31, 2014 , capitalized exploratory well costs of $10.6 million had been capitalized for a period of one year or less. There were no capitalized exploratory well costs as of December 31, 2016 and 2015 . |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The Company has two equity method investments, Constitution Pipeline Company, LLC (Constitution) and Meade Pipeline Co LLC (Meade), which are further described below. Activity related to these equity method investments is as follows: Constitution Meade Total Year Ended December 31, Year Ended December 31, Year Ended December 31, (In thousands) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Balance at beginning of period $ 90,345 $ 64,268 $ 26,892 $ 13,172 $ 3,761 $ — $ 103,517 $ 68,029 $ 26,892 Contributions 8,975 19,625 34,200 19,509 9,448 3,857 28,484 29,073 38,057 Earnings (loss) on equity method investments (2,470 ) 6,452 3,176 (7 ) (37 ) (96 ) (2,477 ) 6,415 3,080 Balance at end of period $ 96,850 $ 90,345 $ 64,268 $ 32,674 $ 13,172 $ 3,761 $ 129,524 $ 103,517 $ 68,029 Constitution Pipeline Company, LLC In April 2012, the Company acquired a 25% equity interest in Constitution, which was formed to develop, construct and operate a 124 -mile large diameter pipeline to transport natural gas from northeast Pennsylvania to both the New England and New York markets. Under the terms of the agreement, the Company agreed to invest its proportionate share of costs associated with the development and construction of the pipeline and related facilities, subject to a contribution cap of $250 million . On April 22, 2016, Constitution announced that the New York State Department of Environmental Conservation (NYSDEC) denied Constitution's application for a Section 401 Water Quality Certification (Certification) for the New York State portion of its proposed 124-mile route. During the second quarter of 2016, Constitution filed legal actions in the U.S Court of Appeals for the Second Circuit and the U.S District Court for the Northern District of New York challenging the legality and appropriateness of the NYSDEC’s decision. Both courts have granted Constitution's motions to expedite the schedules for the legal actions. Constitution stated that it remains committed to pursuing the project and that it intends to pursue all available options to challenge the NYSDEC’s decision. In light of the denial of the Certification and ongoing litigation, Constitution has revised its target in-service date to the second half of 2018, assuming that the challenge process is satisfactorily and promptly concluded. In light of the NYSDEC’s denial and resulting litigation, the Company evaluated its investment in Constitution for other-than-temporary impairment (OTTI) and as of December 31, 2016, does not believe there is an indication of an OTTI. The Company’s evaluation considered various factors, including but not limited to prior Federal Energy Regulatory Commission (FERC) approval and the related economic viability of the project, legal actions filed by Constitution and the expected duration of the legal proceedings, which are at very early stages, and the other members’ commitment to the project. To the extent that the legal and regulatory proceedings have unfavorable outcomes, or if Constitution concludes that the project is no longer viable or elects to not go forward as legal and regulatory actions progress, the Company will reevaluate the facts and circumstances relative to its conclusions with respect to OTTI. In the event that facts and circumstances change, the Company may be required to recognize an impairment charge up to its investment value at such time, net of any cash and working capital held by Constitution. The Company will continue to monitor the carrying value of its investment as required. At this time, the Company remains committed to funding the project in an amount in proportion to its ownership interest for the development and construction of the new pipeline. The Company's total contributions for this project are expected to be approximately $240.0 million . As of December 31, 2016 , the Company has made contributions of $88.5 million since inception of the project and expects to contribute approximately $148.9 million over the next three years . Meade Pipeline Co LLC In February 2014, the Company acquired a 20% equity interest in Meade, which was formed to participate in the development and construction of a 177 -mile pipeline (Central Penn Line) that will transport natural gas from Susquehanna County, Pennsylvania to an interconnect with Transcontinental Gas Pipe Line Company, LLC’s (Transco) mainline in Lancaster County, Pennsylvania. The new pipeline will be constructed and operated by Transco and will be owned by Transco and Meade in proportion to their respective ownership percentages of approximately 61% and 39% , respectively. Under the terms of the Meade LLC agreement, the Company agreed to invest its proportionate share of Meade’s anticipated costs associated with the new pipeline. The Company expects to contribute approximately $120.3 million over the next three years . The in-service date for the new pipeline is expected to be mid-2018; however, this estimate is contingent on the timely issuance of remaining outstanding permits. |
Debt and Credit Agreements
Debt and Credit Agreements | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements The Company's debt and credit agreements consisted of the following: December 31, (In thousands) 2016 2015 7.33% weighted-average senior notes (1) $ — $ 20,000 6.51% weighted-average senior notes 361,000 425,000 9.78% senior notes 67,000 67,000 5.58% weighted-average senior notes 175,000 175,000 3.65% weighted-average senior notes 925,000 925,000 Revolving credit facility — 413,000 $ 1,528,000 $ 2,025,000 Unamortized debt issuance costs (7,470 ) (8,861 ) $ 1,520,530 $ 2,016,139 (1) Includes $20.0 million of current portion of long-term debt at December 31, 2015 . The Company has debt maturities of $304.0 million due in 2018, $87.0 million due in 2020 and $188.0 million due in 2021. In addition, the revolving credit facility matures in 2020 . No other tranches of debt are due within the next five years. At December 31, 2016 , the Company was in compliance with all restrictive financial covenants, as amended, for both its revolving credit facility and senior notes. Senior Notes The Company has various issuances of senior notes. Interest on each of the senior notes is payable semi-annually. Under the terms of the various senior note agreements, the Company may prepay all or any portion of the notes of each series on any date at a price equal to the principal amount thereof plus accrued and unpaid interest plus a make-whole premium. Effective December 31, 2015, the Company amended the agreements governing its senior notes to adjust certain financial covenants and to include an additional financial covenant, as further described below. The amended agreements provide that the asset coverage ratio (present value of proved reserves to debt, as defined in the agreements) be calculated based on the present value of proved reserves before income taxes, whereas prior to these amendments, the present value was calculated after income taxes. The minimum asset coverage ratio was also reduced from 1.75 to 1.0 to 1.25 to 1.0 through and including December 31, 2017 and increases back to a ratio of 1.75 to 1.0 beginning on January 1, 2018 and thereafter. The amendments also introduce a leverage ratio covenant, which is defined in the agreement as the ratio of debt to consolidated EBITDAX. The leverage ratio may not exceed a maximum ratio of: • 4.75 to 1.0 through and including December 31, 2016; • 4.25 to 1.0 through and including December 31, 2017; and • 3.50 to 1.0 beginning on March 31, 2018 and remains in effect until the Company maintains a leverage ratio below 3.0 to 1.0 for two consecutive fiscal quarters ending on or after December 31, 2017, or receives an investment grade rating by Standard & Poor's Ratings Services (S&P) or Moody’s Investor Service, Inc (Moody's). In addition, the amendments provide for potential increases to the original coupon rates ranging from 0 to 125 basis points depending on the asset coverage and leverage ratios at the end of the respective quarterly period, as defined in the note agreements. These potential increases lapse when the Company maintains a leverage ratio between 3.0 to 1.0 for two consecutive fiscal quarters ending on or after December 31, 2017 or receives an investment grade rating by S&P or Moody's. As of December 31, 2016 and 2015, there were no interest rate adjustments required for the Company's senior notes. The note agreements continue to include a minimum annual coverage ratio of consolidated cash flow to interest expense for the trailing four quarters of 2.8 to 1.0, which was unchanged by the amendments. There are also various other covenants and events of default customarily found in such debt instruments. In conjunction with the execution of the amendments, the Company incurred approximately $1.9 million of debt issuance costs, which were capitalized and are being amortized over the term of the respective amended agreements. 7.33% Weighted-Average Senior Notes In July 2001, the Company issued $170.0 million of senior unsecured notes to a group of seven institutional investors in a private placement. The notes had bullet maturities and were issued in three separate tranches. As of December 31, 2016 , the Company has repaid all of the $170.0 million of aggregate maturities associated with the 7.33% weighted-average senior notes. 6.51% Weighted-Average Senior Notes In July 2008, the Company issued $425.0 million of senior unsecured notes to a group of 41 institutional investors in a private placement. The notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 245,000,000 10 years July 2018 6.44 % Tranche 2 $ 100,000,000 12 years July 2020 6.54 % Tranche 3 $ 80,000,000 15 years July 2023 6.69 % In May 2016, the Company repurchased $8.0 million of Tranche 1, $13.0 million of Tranche 2 and $43.0 million of Tranche 3 for a total of $64.0 million for $68.3 million . The Company recognized a $4.7 million extinguishment loss associated with the premium paid and the write-off of a portion of the related deferred financing costs due to early repayment . 9.78% Senior Notes In December 2008, the Company issued $67.0 million aggregate principal amount of 10 year 9.78% senior unsecured notes to a group of four institutional investors in a private placement. 5.58% Weighted-Average Senior Notes In December 2010, the Company issued $175.0 million of senior unsecured notes to a group of eight institutional investors in a private placement. The notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 88,000,000 10 years January 2021 5.42 % Tranche 2 $ 25,000,000 12 years January 2023 5.59 % Tranche 3 $ 62,000,000 15 years January 2026 5.80 % 3.65% Weighted‑Average Senior Notes In September 2014, the Company issued $925.0 million of senior unsecured notes to a group of 24 institutional investors in a private placement. The notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 100,000,000 7 years September 2021 3.24 % Tranche 2 $ 575,000,000 10 years September 2024 3.67 % Tranche 3 $ 250,000,000 12 years September 2026 3.77 % In conjunction with the issuance of the 3.65% weighted‑average senior notes in September 2014, the Company incurred approximately $5.6 million of debt issuance costs, which were capitalized and are being amortized over the term of the notes. The amortization of debt issuance costs is included in interest expense in the Consolidated Statement of Operations. Revolving Credit Agreement The Company's revolving credit facility is unsecured. 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. Effective April 19, 2016 , the Company’s borrowing base was reduced from $3.4 billion to $3.2 billion . The maximum credit amount under the revolving credit facility remained unchanged at $1.8 billion ; however, the available commitments were reduced to $1.6 billion at the time of the redetermination. As a result of the repurchase of the Company's 6.51% weighted-average senior notes in the second quarter of 2016, the available commitments under the revolving credit facility were increased to $1.7 billion and remained at that level as of December 31, 2016 . The Company revolving credit facility matures in April 2020 . Effective December 31, 2015, the Company amended its revolving credit facility to adjust certain financial covenants and include an additional financial covenant, as further described below. The amendment provided that the asset coverage ratio (present value of proved reserves to debt, as defined in the agreement) be calculated based on the present value of proved reserves before income taxes, whereas prior to the amendment, the present value was calculated after income taxes. The minimum asset coverage ratio was also reduced from 1.75 to 1.0 to 1.25 to 1.0 through and including December 31, 2017 and increases back to a ratio of 1.75 to 1.0 beginning on March 31, 2018. The amendment also introduced a leverage ratio covenant, which is defined in the agreement as the ratio of debt to consolidated EBITDAX. The ratio may not exceed a maximum ratio of: • 4.75 to 1.0 through and including December 31, 2016; • 4.25 to 1.0 through and including December 31, 2017; and • 3.50 to 1.0 beginning on March 31, 2018 and remains in effect until the Company maintains a leverage ratio below 3.0 to 1.0 for two consecutive fiscal quarters beginning on or after December 31, 2017, or receives an investment grade rating by S&P or Moody’s. In addition to the amendment to the asset coverage ratio and inclusion of the leverage ratio covenant, the amended revolving credit facility also increased the maximum leverage ratio and associated margins. Interest rates under the amended revolving credit facility are based on LIBOR or ABR indications, plus a margin which ranges from 50 to 300 basis points, as defined in the agreement. These rates will remain in effect (i) until the first date occurring on or after December 31, 2017 on which both the asset coverage ratio is greater than 1.75 to 1.0 and the leverage ratio is less than 3.0 to 1.0 for two consecutive fiscal quarters, at which time the related margins will revert back to pre-amendment levels of 50 to 225 basis points, or (ii) upon the Company achieving an investment grade rating from either Moody's or S&P, at which time the associated margins will be adjusted and determined based on the Company's credit rating on a prospective basis. The revolving credit facility also contains various other customary covenants that remained unchanged as a result of the amendment, which include the following (with all calculations based on definitions contained in the agreement): (a) Maintenance of a minimum annual coverage ratio of consolidated cash flow to interest expense for the trailing four quarters of 2.8 to 1.0. (b) Maintenance of a minimum current ratio of 1.0 to 1.0. The revolving 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. The Company incurred approximately $7.8 million and $1.1 million of debt issuance costs in connection with the April 17, 2015 and December 31, 2015 amendments to the revolving credit facility, respectively, which were capitalized and will be amortized over the term of the amended credit facility. The remaining unamortized costs will be amortized over the term of the amended revolving credit facility. At December 31, 2016 , the Company had no b orrowings outstanding under its revolving credit facility and had unused commitments of $1.7 billion . The Company's weighted-average effective interest rates for the revolving credit facility during the years ended December 31, 2016 , 2015 and 2014 were approximately 2.3% , 2.2% and 2.2% , respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
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 discontinued 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 Statement of Operations throughout 2014 as the underlying hedged transactions occurred. As of December 31, 2014, there are no gains or losses deferred in accumulated other comprehensive income (loss) associated with the Company’s commodity derivatives. As of December 31, 2016 , the Company had the following outstanding commodity derivatives instruments: Collars Floor Ceiling Swaps Basis Swaps Type of Contract Volume Contract Period Range Weighted-Average Range Weighted- Average Weighted- Average Weighted- Average Natural gas 35.5 Bcf Jan. 2017 - Dec. 2017 $ 3.12 Natural gas 16.2 Bcf Feb. 2017 - Dec. 2017 $ 3.46 Natural gas 35.5 Bcf Jan. 2017 - Dec. 2017 $— $ 3.09 $3.42-$3.45 $ 3.43 Natural gas 21.3 Bcf Jan. 2018 - Dec. 2019 $ 0.42 Crude oil 1.8 Mmbbl Jan. 2017 - Dec. 2017 $— $ 50.00 $56.25-$56.50 $ 56.39 In the table above, natural gas prices are stated per Mcf and crude oil prices are stated per barrel. Effect of Derivative Instruments on the Consolidated Balance Sheet Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities December 31, December 31, (In thousands) Balance Sheet Location 2016 2015 2016 2015 Commodity contracts Other assets (non-current) $ 2,991 $ — $ — $ — Commodity contracts Derivative instruments (current) — — 40,259 — $ 2,991 $ — $ 40,259 $ — Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet December 31, (In thousands) 2016 2015 Derivative assets Gross amounts of recognized assets $ 2,991 $ — Gross amounts offset in the statement of financial position — — Net amounts of assets presented in the statement of financial position 2,991 — Gross amounts of financial instruments not offset in the statement of financial position — — Net amount $ 2,991 $ — Derivative liabilities Gross amounts of recognized liabilities $ 40,259 $ — Gross amounts offset in the statement of financial position — — Net amounts of liabilities presented in the statement of financial position 40,259 — Gross amounts of financial instruments not offset in the statement of financial position 757 — Net amount $ 41,016 $ — 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: Year Ended December 31, (In thousands) 2016 2015 2014 Commodity contracts $ — $ — $ (133,310 ) The effective portion of gain (loss) reclassified from accumulated other comprehensive income (loss) into income is as follows: Year Ended December 31, (In thousands) 2016 2015 2014 (1) Natural gas revenues $ — $ — $ (143,577 ) Crude oil and condensate revenues — — (626 ) $ — $ — $ (144,203 ) (1) The Company ceased hedge accounting effective April 1, 2014. As a result, a loss of approximately $73.4 million related to amounts previously frozen in accumulated other comprehensive income (loss) was reclassified into income during 2014. Effect of Derivative Instruments on the Consolidated Statement of Operations Year Ended December 31, (In thousands) 2016 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 (1) $ — $ — $ (73,020 ) Crude oil and condensate (1) — — (408 ) Gain (loss) on derivative instruments (1,682 ) 194,289 81,716 Non-cash gain (loss) on derivative instruments Gain (loss) on derivative instruments (37,268 ) (137,603 ) 137,603 $ (38,950 ) $ 56,686 $ 145,891 $ (38,950 ) $ 56,686 $ 75,116 (1) Relates entirely to the reclassification from accumulated other comprehensive income (loss) of previously frozen losses associated with derivatives that were de-designated as cash flow hedges on April 1, 2014. There was no ineffectiveness recorded in the Company’s Consolidated Statement of Operations related to its derivative instruments designated as cash flow hedges for the year ended December 31, 2014 . Additional Disclosures about Derivative Instruments and Hedging Activities The use of derivative instruments involves the risk that the counterparties will be unable to meet their obligations under the agreements. The Company's counterparties are primarily commercial banks and financial service institutions that management believes present minimal credit risk and its derivative contracts are with multiple counterparties to minimize its exposure to any individual counterparty. The Company performs both quantitative and qualitative assessments of these counterparties based on their credit ratings and credit default swap rates where applicable. Certain counterparties to the Company's derivative instruments are also lenders under its revolving credit facility. The Company's revolving credit facility and derivative instruments contain certain cross default and acceleration provisions that may require immediate payment of its derivative liabilities in certain situations. The Company also has netting arrangements with each of its counterparties that allow it to offset assets and liabilities from separate derivative contracts with that counterparty. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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 Assets Deferred compensation plan $ 12,587 $ — $ — $ 12,587 Derivative instruments — — 2,991 2,991 Total assets $ 12,587 $ — $ 2,991 $ 15,578 Liabilities Deferred compensation plan $ 24,169 $ — $ — $ 24,169 Derivative instruments — 21,400 18,859 40,259 Total liabilities $ 24,169 $ 21,400 $ 18,859 $ 64,428 (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 Assets Deferred compensation plan $ 12,921 $ — $ — $ 12,921 Total assets $ 12,921 $ — $ — $ 12,921 Liabilities Deferred compensation plan $ 22,371 $ — $ — $ 22,371 Total liabilities $ 22,371 $ — $ — $ 22,371 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 prices for natural gas and crude oil, 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: Year Ended December 31, (In thousands) 2016 2015 2014 Balance at beginning of period $ — $ 85,958 $ (3,910 ) Total gains (losses) (realized or unrealized): Included in earnings (17,886 ) 32,864 35,067 Included in other comprehensive income — — 3,755 Settlements 2,018 (118,822 ) 51,046 Transfers in and/or out of level 3 — — — Balance at end of period $ (15,868 ) $ — $ 85,958 Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ (15,868 ) $ — $ 85,958 There were no transfers between Level 1 and Level 2 fair value measurements for the years ended December 31, 2016 , 2015 and 2014 . Non-Financial Assets and Liabilities The Company discloses or recognizes its non-financial assets and liabilities, such as impairments and acquisitions of oil and gas properties and other assets, at fair value on a nonrecurring basis. During the year ended December 31, 2014, the Company acquired certain oil and gas properties that were allocated based on the relative fair value of the proved and unproved properties. The Company also recorded an impairment charge related to certain oil and gas properties and other assets during the years ended December 31, 2016 , 2015 and 2014 . Refer to Note 2 for additional disclosures related to the non-recurring fair value measurements associated with these acquisitions and Note 3 for additional disclosures related to fair value associated with the impaired assets. As none of the Company’s other non-financial assets and liabilities were measured at fair value as of December 31, 2016 , 2015 and 2014 , additional disclosures were not required. The estimated fair value of the Company's asset retirement obligation 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 Consolidated Balance Sheet for cash and cash equivalents approximate 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 and the remaining financial instruments are classified as Level 2. 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 senior 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 senior 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 : December 31, 2016 December 31, 2015 (In thousands) Carrying Amount Estimated Fair Value Carrying Estimated Fair Value Long-term debt $ 1,520,530 $ 1,463,643 $ 2,016,139 $ 1,839,530 Current maturities — — (20,000 ) (20,378 ) Long-term debt, excluding current maturities $ 1,520,530 $ 1,463,643 $ 1,996,139 $ 1,819,152 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2016 | |
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) Year Ended Balance at beginning of period $ 145,606 Liabilities incurred 3,522 Liabilities settled (1,148 ) Liabilities divested (24,338 ) Accretion expense 8,065 Change in estimate 2,026 Balance at end of period $ 133,733 As of December 31, 2016 and 2015 , $2.0 million is included in accrued liabilities in the Consolidated Balance Sheet, which represents the current portion of the Company’s asset retirement obligation. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Transportation and Gathering Agreements The Company has entered into certain natural gas and oil transportation and gathering agreements with various pipeline carriers. Under certain of these agreements, the Company is obligated to ship minimum daily quantities, or pay for any deficiencies at a specified rate. The Company's forecasted production to be shipped on these pipelines is expected to exceed minimum daily quantities provided in the agreements. The Company is also obligated under certain of these arrangements to pay a demand charge for firm capacity rights on pipeline systems regardless of the amount of pipeline capacity utilized by the Company. If the Company does not utilize the capacity, it can release it to others, thus reducing its potential liability. As of December 31, 2016 , the Company's future minimum obligations under transportation and gathering agreements are as follows: (In thousands) 2017 $ 148,061 2018 167,749 2019 155,904 2020 150,522 2021 150,110 Thereafter 1,071,827 $ 1,844,173 Drilling Rig Commitments As of December 31, 2016 , the Company has a remaining commitment for one drilling rig for its capital program in the Marcellus Shale, expiring in December 2017, with an initial term of three years. As of December 31, 2016 , the future minimum commitment under this agreement is $4.2 million in 2017 . Hydraulic Fracturing Services Commitments During the year ended December 31, 2016 , the Company entered into a fifteen month agreement, which ends in December 2017, for hydraulic fracturing services in the Marcellus Shale. As of December 31, 2016 , the future minimum commitment under this agreement is $4.0 million in 2017 . Lease Commitments The Company leases certain office space, warehouse facilities, vehicles, machinery and equipment under cancelable and non-cancelable leases. Rent expense under these arrangements totaled $10.7 million , $13.9 million and $10.8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Future minimum rental commitments under non-cancelable leases in effect at December 31, 2016 are as follows: (In thousands) 2017 $ 7,244 2018 6,727 2019 6,363 2020 5,889 2021 4,783 Thereafter 6,203 $ 37,209 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 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax benefit is summarized as follows: Year Ended December 31, (In thousands) 2016 2015 2014 Current Federal $ (9,920 ) $ 983 $ 44,887 State (1,848 ) (1,397 ) (4,387 ) (11,768 ) (414 ) 40,500 Deferred Federal (218,357 ) (72,869 ) (32,375 ) State (12,350 ) (99 ) (80,192 ) (230,707 ) (72,968 ) (112,567 ) Income tax benefit $ (242,475 ) $ (73,382 ) $ (72,067 ) Income tax benefit was different than the amounts computed by applying the statutory federal income tax rate as follows: Year Ended December 31, 2016 2015 2014 (In thousands, except rates) Amount Rate Amount Rate Amount Rate Computed "expected" federal income tax $ (230,860 ) 35.00 % $ (65,546 ) 35.00 % $ 11,341 35.00 % State income tax, net of federal income tax benefit (10,888 ) 1.65 % (3,152 ) 1.68 % 903 2.79 % Deferred tax adjustment related to change in overall state tax rate (663 ) 0.10 % 2,822 (1.51 )% (86,956 ) (268.36 )% Valuation allowance 221 (0.03 )% 187 (0.10 )% 3,977 12.27 % Uncertain tax positions — — % — — % (1,974 ) (6.09 )% Provision to return adjustments (121 ) 0.02 % (6,326 ) 3.38 % (791 ) (2.44 )% Other, net (164 ) 0.02 % (1,367 ) 0.73 % 1,433 4.42 % Income tax benefit $ (242,475 ) 36.76 % $ (73,382 ) 39.18 % $ (72,067 ) (222.41 )% In 2016 , the Company's overall effective tax rate decrease d compared to 2015 , primarily due to larger provision-to-return adjustments in 2015 compared to 2016 . The overall effective tax rate was significantly lower in 2014 due to a change in the effective state income tax rate based on updated state apportionment factors in the states in which the Company operates. For state income tax purposes, the Company must estimate the respective amounts of future earnings that are subject to income tax in the various states in which the Company operates. These estimates may change based on a variety of factors, including, but not limited to, the composition and location of the Company’s asset base, its employees, and its customers. The 2014 decrease in the Company’s state apportionment factors was primarily driven by a shift in the sourcing of revenues based on the location of customers to whom the Company ultimately sells its natural gas in the northeast United States. The 2014 decrease in the effective state income tax rate significantly affected the Company’s estimated net state deferred tax liabilities reflected in its Consolidated Balance Sheet, resulting in an income tax benefit of approximately $87.0 million that was reflected in the Company’s provision for income taxes in 2014 . The composition of net deferred tax liabilities is as follows: December 31, (In thousands) 2016 2015 Deferred Tax Assets Net operating losses $ 352,001 $ 223,402 Alternative minimum tax credits 218,773 228,693 Foreign tax credits 3,816 3,837 Derivative instruments 13,771 — Incentive compensation 22,852 22,509 Deferred compensation 8,217 7,869 Post-retirement benefits 13,865 13,556 Other 2,743 2,905 Less: valuation allowance (5,186 ) (4,965 ) Total 630,852 497,806 Deferred Tax Liabilities Properties and equipment 1,207,545 1,303,840 Equity method investments 2,754 1,202 Total 1,210,299 1,305,042 Net deferred tax liabilities $ 579,447 $ 807,236 As of December 31, 2016 , the Company had alternative minimum tax credit carryforwards of $218.8 million , which do not expire and can be used to offset regular income taxes in future years to the extent that regular income taxes exceed the alternative minimum tax in any such year. The Company also had gross net operating loss carryforwards of $1.0 billion and $636.1 million for federal and state reporting purposes, respectively, the majority of which will expire between 2022 and 2036. The Company has $4.8 million of state valuation allowances, and believes it is more likely than not that the remainder of the deferred tax benefits will be utilized prior to their expiration. Tax benefits related to employee stock-based compensation included in net operating loss carryforwards but not reflected in deferred tax assets as of December 31, 2016 are approximately $120.3 million . Unrecognized Tax Benefits A reconciliation of unrecognized tax benefits is as follows: Year Ended December 31, (In thousands) 2016 2015 2014 Balance at beginning of year $ 663 $ 663 $ 3,700 Additions based on tax provisions related to the current year — — — Additions for tax positions of prior years — — — Reductions for tax positions of prior years — — (3,037 ) Settlements — — — Balance at end of year $ 663 $ 663 $ 663 During 2013, the Company recorded unrecognized tax benefits of $3.7 million based on the allocation of certain gains associated with its divestitures for purposes of computing state income taxes. These benefits were reduced during 2014 by $3.0 million based on changes to the Company's state tax rates. There was no change to the Company's unrecognized tax benefits during 2016 or 2015. If recognized, the net tax benefit of $0.7 million would not have a material effect on the Company's effective tax rate. The Company files income tax returns in the U.S. federal, various states and other jurisdictions. The Company is no longer subject to examinations by state authorities before 2012 or by federal authorities before 2013. The Company is not currently under examination by the Internal Revenue Service. The Company believes that appropriate provisions have been made for all jurisdictions and all open years, and that any assessment on these filings will not have a material impact on the Company's financial position, results of operations or cash flows. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Postretirement Benefits The Company provides certain health care benefits for retired employees, including their spouses, eligible dependents and surviving spouses (retirees). These benefits are commonly called postretirement benefits. The health care plans are contributory, with participants' contributions adjusted annually. Most employees become eligible for these benefits if they meet certain age and service requirements at retirement. During the year ended December 31, 2016 , the Company expanded their eligibility definition to include those employees who have reached the age of 50 with at least 20 years of service. The Company was providing postretirement benefits to 310 retirees and their dependents at the end of 2016 and 276 retirees and their dependents at the end of 2015 . Obligations and Funded Status The funded status represents the difference between the accumulated benefit obligation of the Company's postretirement plan and the fair value of plan assets at December 31. The postretirement plan does not have any plan assets; therefore, the unfunded status is equal to the amount of the December 31 accumulated benefit obligation. The change in the Company's postretirement benefit obligation is as follows: Year Ended December 31, (In thousands) 2016 2015 2014 Change in Benefit Obligation Benefit obligation at beginning of year $ 36,626 $ 37,076 $ 34,995 Service cost 2,323 1,808 1,295 Interest cost 1,498 1,448 1,343 Actuarial (gain) loss (2,846 ) (2,829 ) 373 Benefits paid (934 ) (877 ) (930 ) Plan amendments 815 — — Benefit obligation at end of year $ 37,482 $ 36,626 $ 37,076 Change in Plan Assets Fair value of plan assets at end of year — — — Funded status at end of year $ (37,482 ) $ (36,626 ) $ (37,076 ) Amounts Recognized in the Balance Sheet Amounts recognized in the balance sheet consist of the following: December 31, (In thousands) 2016 2015 2014 Current liabilities $ 1,223 $ 1,333 $ 1,249 Long-term liabilities 36,259 35,293 35,827 $ 37,482 $ 36,626 $ 37,076 Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Amounts recognized in accumulated other comprehensive income (loss) consist of the following: December 31, (In thousands) 2016 2015 2014 Net actuarial (gain) loss $ (2,266 ) $ 580 $ 3,408 Prior service cost 704 — — $ (1,562 ) $ 580 $ 3,408 Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Loss) Year Ended December 31, (In thousands) 2016 2015 2014 Components of Net Periodic Postretirement Benefit Cost Service cost $ 2,323 $ 1,808 $ 1,295 Interest cost 1,498 1,448 1,343 Amortization of prior service cost 111 — — Amortization of net loss — — (26 ) Net periodic postretirement cost $ 3,932 $ 3,256 $ 2,612 Other Changes in Benefit Obligations Recognized in Other Comprehensive Income (Loss) Net (gain) loss $ (2,846 ) $ (2,829 ) $ 373 Prior service cost 815 — — Amortization of prior service cost (111 ) — — Amortization of net loss — — 26 Total recognized in other comprehensive income (2,142 ) (2,829 ) 399 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 1,790 $ 427 $ 3,011 Assumptions Assumptions used to determine projected postretirement benefit obligations and postretirement costs are as follows: December 31, 2016 2015 2014 Discount rate (1) 4.30 % 4.25 % 4.00 % Health care cost trend rate for medical benefits assumed for next year (pre-65) 7.50 % 5.50 % 6.00 % Health care cost trend rate for medical benefits assumed for next year (post-65) 5.00 % 5.50 % 6.00 % Ultimate trend rate (pre-65) 4.50 % 4.50 % 4.50 % Ultimate trend rate (post-65) 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate (pre-65) 2023 2018 2018 Year that the rate reaches the ultimate trend rate (post-65) 2018 2018 2018 _______________________________________________________________________________ (1) Represents the year end rates used to determine the projected benefit obligation. To compute postretirement cost in 2016 , 2015 and 2014 , respectively, the beginning of year discount rates of 4.25% , 4.00% and 4.75% were used. Coverage provided to participants age 65 and older is under a fully-insured arrangement. The Company subsidy is limited to 60% of the expected annual fully-insured premium for participants age 65 and older. For all participants under age 65, the Company subsidy for all retiree medical and prescription drug benefits, beginning January 1, 2006, was limited to an aggregate annual amount not to exceed $648,000 . This limit increases by 3.5% annually thereafter. Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: (In thousands) 1-Percentage-Point Increase 1-Percentage-Point Decrease Effect on total of service and interest cost $ 968 $ (721 ) Effect on postretirement benefit obligation 6,828 (5,338 ) Cash Flows Contributions. The Company expects to contribute approximately $1.2 million to the postretirement benefit plan in 2017 . Estimated Future Benefit Payments. The following estimated benefit payments under the Company's postretirement plans, which reflect expected future service, are expected to be paid as follows: (In thousands) 2017 1,249 2018 1,344 2019 1,488 2020 1,625 2021 1,708 Years 2022 - 2026 10,489 Savings Investment Plan The Company has a Savings Investment Plan (SIP), which is a defined contribution plan. The Company matches a portion of employees' contributions in cash. Participation in the SIP is voluntary and all regular employees of the Company are eligible to participate. The Company matches employee contributions dollar-for-dollar, up to the maximum IRS limit, on the first six percent of an employee's pretax earnings. The SIP also provides for discretionary profit sharing contributions in an amount equal to nine percent of an eligible plan participant's salary and bonus. During the years ended December 31, 2016 , 2015 and 2014 , the Company made contributions of $6.5 million , $7.1 million and $7.2 million , respectively, which are included in general and administrative expense in the Consolidated Statement of Operations. The Company's common stock is an investment option within the SIP. Deferred Compensation Plan The Company has a deferred compensation plan which is available to officers and certain members of the Company's management group and acts as a supplement to the SIP. The Internal Revenue Code does not cap the amount of compensation that may be taken into account for purposes of determining contributions to the deferred compensation plan and does not impose limitations on the amount of contributions to the deferred compensation plan. At the present time, the Company anticipates making a contribution to the deferred compensation plan on behalf of a participant in the event that Internal Revenue Code limitations cause a participant to receive less than the Company matching contribution under the SIP. The assets of the deferred compensation plan are held in a rabbi trust and are subject to additional risk of loss in the event of bankruptcy or insolvency of the Company. Under the deferred compensation plan, the participants direct the deemed investment of amounts credited to their accounts. The trust assets are invested in either mutual funds that cover the investment spectrum from equity to money market, or may include holdings of the Company's common stock, which is funded by the issuance of shares to the trust. The mutual funds are publicly traded and have market prices that are readily available. The Company's common stock is not currently an investment option in the deferred compensation plan. Shares of the Company's stock currently held in the deferred compensation plan represent vested performance share awards that were previously deferred into the rabbi trust. Settlement payments are made to participants in cash, either in a lump sum or in periodic installments. The market value of the trust assets, excluding the Company's common stock, was $12.6 million and $12.9 million at December 31, 2016 and 2015 , respectively, and is included in other assets in the Consolidated Balance Sheet. Related liabilities, including the Company's common stock, totaled $24.2 million and $22.4 million at December 31, 2016 and 2015 , respectively, and are included in other liabilities in the Consolidated Balance Sheet. With the exception of the Company's common stock, there is no impact on earnings or earnings per share from the changes in market value of the deferred compensation plan assets because the changes in market value of the trust assets are offset completely by changes in the value of the liability, which represents trust assets belonging to plan participants. As of December 31, 2016 and 2015 , 495,774 shares and 534,174 shares of the Company's common stock were held in the rabbi trust, respectively. These shares were recorded at the market value on the date of deferral, which totaled $5.1 million and $5.7 million at December 31, 2016 and 2015 , respectively, and is included in additional paid-in capital in stockholders' equity in the Consolidated Balance Sheet. The Company recognized compensation expense (benefit) of $1.8 million , $(6.4) million and $(4.9) million in 2016 , 2015 and 2014 , respectively, which is included in general and administrative expense in the Consolidated Statement of Operations representing the increase (decrease) in the closing price of the Company's shares held in the trust. The Company's common stock issued to the trust is not considered outstanding for purposes of calculating basic earnings per share, but is considered a common stock equivalent in the calculation of diluted earnings per share. The Company made contributions to the deferred compensation plan of $0.6 million , $1.0 million and $0.8 million in 2016 , 2015 and 2014 , respectively, which are included in general and administrative expense in the Consolidated Statement of Operations. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Common Stock Issuance On February 22, 2016 , the Company entered into an underwriting agreement, pursuant to which the Company sold an aggregate of 44.0 million shares of common stock at a price to the Company of $19.675 per share. On February 26, 2016 , the Company received $865.7 million in net proceeds, after deducting underwriting discounts and commissions. On March 2, 2016 , the Company sold an additional 6.6 million shares of common stock as a result of the exercise of the underwriters’ option to purchase additional shares and received $129.9 million in net proceeds. These net proceeds were used for general corporate purposes, including repaying indebtedness under the Company’s revolving credit facility and repurchasing certain of the Company's senior notes. Incentive Plans On May 1, 2014, the Company’s shareholders approved the 2014 Incentive Plan, which replaced the 2004 Incentive Plan that expired on April 29, 2014. Under the 2014 Incentive Plan, incentive and non-statutory stock options, stock appreciation rights (SARs), stock awards, cash awards and performance awards may be granted to key employees, consultants and officers of the Company. Non-employee directors of the Company may be granted discretionary awards under the 2014 Incentive Plan consisting of stock options or stock awards. A total of 18.0 million shares of common stock may be issued under the 2014 Incentive Plan. Under the 2014 Incentive Plan, no more than 10.0 million shares may be issued pursuant to incentive stock options. No additional awards may be granted under the 2014 Incentive Plan on or after May 1, 2024. At December 31, 2016 , approximately 16.0 million shares are available for issuance under the 2014 Incentive Plan. No additional awards will be granted under any of the Company’s prior plans, including the 2004 Incentive Plan. Awards outstanding under the 2004 Incentive Plan will remain outstanding in accordance with their original terms and conditions. Treasury Stock In August 1998, the Board of Directors authorized a share repurchase program under which the Company may purchase shares of common stock in the open market or in negotiated transactions. The timing and amount of these stock purchases are determined at the discretion of management. The Company may use the repurchased shares to fund stock compensation programs presently in existence, or for other corporate purposes. All purchases executed to date have been through open market transactions. There is no expiration date associated with the authorization to repurchase shares of the Company. During 2016 and 2015, there were no share repurchases. During the year ended December 31, 2014 , the Company repurchased 4.3 million shares for a total cost of $138.9 million . Since the authorization date, the Company has repurchased 29.9 million shares of the 40.0 million total shares authorized, of which 20.0 million shares have been retired, for a total cost of approximately $388.4 million . No treasury shares have been delivered or sold by the Company subsequent to the repurchase. As of December 31, 2016 , 9.9 million shares were held as treasury stock. Dividend Restrictions The Board of Directors of the Company determines the amount of future cash dividends, if any, to be declared and paid on the common stock depending on, among other things, the Company's financial condition, funds from operations, the level of its capital and exploration expenditures, and its future business prospects. None of the senior note or credit agreements in place have restricted payment provisions or other provisions limiting dividends. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation General Stock-based compensation expense for the years ended December 31, 2016 , 2015 and 2014 was $26.0 million , $13.7 million and $21.5 million , respectively, and is included in general and administrative expense in the Consolidated Statement of Operations. For the year ended December 31, 2016 and 2014 , the Company realized $2.1 million and $1.4 million , respectively, of tax expense related to the book compensation cost in excess of the federal tax deduction for employee stock-based compensation. There was no tax expense or benefit recognized from stock-based compensation during the year ended December 31, 2015 . The Company is able to recognize tax benefits only to the extent they reduce the Company's income taxes payable. All shortfalls must be recognized in the period in which they arise. Restricted Stock Awards Restricted stock awards are granted from time to time to employees of the Company. The fair value of restricted stock grants under the 2014 Incentive Plan is based on the closing stock price on the grant date. Restricted stock awards generally vest either at the end of a three year service period or on a graded or graduated vesting basis at each anniversary date over a three or four year service period. For awards that vest at the end of the service period, expense is recognized ratably using a straight-line approach over the service period. Under the graded or graduated approach, the Company recognizes compensation cost ratably over the requisite service period, as applicable, for each separately vesting tranche as though the awards are, in substance, multiple awards. For all restricted stock awards, vesting is dependent upon the employees' continued service with the Company, with the exception of employment termination due to death, disability or retirement. The Company accelerates the vesting period for retirement-eligible employees for purposes of recognizing compensation expense in accordance with the vesting provisions of the Company's stock-based compensation programs. The Company used an annual forfeiture rate assumption ranging from 5.0% to 6.0% for purposes of recognizing stock-based compensation expense for restricted stock awards. The annual forfeiture rates were based on the Company's actual forfeiture history for this type of award to various employee groups. The following table is a summary of restricted stock award activity: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 49,825 $ 33.76 49,869 $ 33.40 27,806 $ 20.53 Granted — — 5,900 25.44 47,500 34.76 Vested (6,650 ) 33.02 (5,944 ) 22.55 (17,437 ) 15.84 Forfeited — — — — (8,000 ) 35.00 Outstanding at end of period (1)(2) 43,175 $ 33.87 49,825 $ 33.76 49,869 $ 33.40 _______________________________________________________________________________ (1) As of December 31, 2016 , the aggregate intrinsic value was $1.0 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2016 by the number of non-vested restricted stock awards outstanding. (2) As of December 31, 2016 , the weighted average remaining contractual term of non-vested restricted stock awards outstanding was 0.3 years . Compensation expense recorded for all restricted stock awards for the years ended December 31, 2016 , 2015 and 2014 was $0.4 million , $0.4 million and $1.0 million , respectively. Unamortized expense as of December 31, 2016 for all outstanding restricted stock awards was $0.1 million and will be recognized over the next year. The total fair value of restricted stock awards that vested during 2016 , 2015 and 2014 was $0.2 million , $0.2 million and $0.6 million , respectively. Restricted Stock Units Restricted stock units are granted from time to time to non-employee directors of the Company. The fair value of the restricted stock units under the 2014 Incentive Plan is based on the closing stock price on the grant date. These units vest immediately and compensation expense is recorded immediately. Restricted stock units are issued when the director ceases to be a director of the Company. The following table is a summary of restricted stock unit activity: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 425,438 $ 13.81 604,214 $ 12.48 566,321 $ 10.75 Granted and fully vested 69,302 20.62 51,292 27.87 37,893 38.28 Issued (146,202 ) 14.17 (230,068 ) 13.45 — — Forfeited — — — — — — Outstanding at end of period (1)(2) 348,538 $ 15.01 425,438 $ 13.81 604,214 $ 12.48 _______________________________________________________________________________ (1) As of December 31, 2016 , the aggregate intrinsic value was $8.1 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2016 by the number of outstanding restricted stock units. (2) Due to the immediate vesting of the units and the unknown term of each director, the weighted-average remaining contractual term in years has not been provided. Compensation expense recorded for all restricted stock units for the year ended December 31, 2016 , 2015 and 2014 was $1.4 million , $1.4 million and $1.5 million , respectively, which reflects the total fair value of these units. Stock Appreciation Rights Stock appreciation rights (SARs) allow the employee to receive any intrinsic value over the grant date market price that may result from the price appreciation of the common shares granted. All of these awards have graded-vesting features and vest over a service period of three years , with one-third of the award becoming exercisable each year on the anniversary date of the grant and have a contractual term of seven years . The following table is a summary of SAR activity: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Outstanding at beginning of period 558,546 $ 12.52 667,764 $ 12.63 667,764 $ 12.63 Granted — — — — — — Exercised (75,260 ) 9.19 (109,218 ) 13.19 — — Forfeited or expired — — — — — — Outstanding at end of period (1) 483,286 $ 13.04 558,546 $ 12.52 667,764 $ 12.63 Exercisable at end of period (2) 483,286 $ 13.04 558,546 $ 12.52 590,960 $ 11.98 _______________________________________________________________________________ (1) The intrinsic value of a SAR is the amount which the current market value of the underlying stock exceeds the exercise price of the SAR. As of December 31, 2016 , the aggregate intrinsic value and weighted-average remaining contractual term of SARs outstanding was $5.0 million and 1.5 years , respectively. (2) As of December 31, 2016 , the aggregate intrinsic value and weighted-average remaining contractual term of SARs exercisable was $5.0 million and 1.5 years , respectively. Compensation expense recorded for all outstanding SARs for the year ended December 31, 2014 was $0.1 million . As of December 31, 2014 , there was no remaining unamortized expense to be recognized for the outstanding SARs. The expected term was derived by reviewing minimum and maximum expected term outputs from the Black-Scholes model based on award type and employee type. This term represents the period of time that awards granted are expected to be outstanding. The stock price volatility was calculated using historical closing stock price data for the Company for the period associated with the expected term through the grant date of each award. The risk free rate of return percentages are based on the continuously compounded equivalent of the U.S. Treasury (Nominal 10) within the expected term as measured on the grant date. The expected dividend percentage assumes that the Company will continue to pay a consistent level of dividend each quarter. Performance Share Awards The Company grants three types of performance share awards: two based on performance conditions measured against the Company's internal performance metrics (Employee Performance Share Awards and Hybrid Performance Share Awards) and one based on market conditions measured based on the Company's performance relative to a predetermined peer group (TSR Performance Share Awards). The performance period for these awards commences on January 1 of the respective year in which the award was granted and extends over a three -year performance period. For all performance share awards, the Company used an annual forfeiture rate assumption ranging from 0% to 6% 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. Each performance award represents the right to receive up to 100% of the award in shares of common stock. Employee Performance Share Awards. The Employee Performance Share Awards vest at the end of the three -year performance period. An employee will earn one-third of the award for each of the three performance metrics that the Company meets . These 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 December 31, 2016 , it is considered probable that all of the criteria for these awards will be met. The following table is a summary of activity for Employee Performance Share Awards: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 925,590 $ 30.23 1,088,960 $ 25.18 1,657,980 $ 16.25 Granted 435,990 20.49 349,780 27.71 241,130 39.43 Issued and fully vested (340,960 ) 26.62 (504,620 ) 17.59 (751,780 ) 10.19 Forfeited (27,090 ) 27.77 (8,530 ) 31.11 (58,370 ) 23.57 Outstanding at end of period 993,530 $ 27.26 925,590 $ 30.23 1,088,960 $ 25.18 Hybrid Performance Share Awards. The Hybrid Performance Share Awards have a three -year graded performance period. The 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 December 31, 2016 , it is considered probable that the criteria for these awards will be met. The following table is a summary of activity for the Hybrid Performance Share Awards: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 372,385 $ 30.37 329,061 $ 29.27 450,212 $ 18.96 Granted 271,938 20.49 194,947 27.71 123,257 39.43 Issued and fully vested (164,539 ) 29.34 (151,623 ) 24.56 (244,408 ) 15.41 Forfeited — — — — — — Outstanding at end of period 479,784 $ 25.12 372,385 $ 30.37 329,061 $ 29.27 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. The TSR Performance Share Awards granted 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 table is a summary of activity for the TSR Performance Share Awards: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Grant Date Fair Value per Share (1) Shares Weighted- Average Grant Date Fair Value per Share (1) Shares Weighted- Average Grant Date Fair Value per Share (1) Outstanding at beginning of period 732,286 $ 23.82 674,787 $ 22.42 860,686 $ 14.06 Granted 407,907 18.57 292,421 19.29 184,885 32.04 Issued and fully vested (254,980 ) 23.06 (234,922 ) 14.16 (370,784 ) 7.81 Forfeited — — — — — — Outstanding at end of period 885,213 $ 21.62 732,286 $ 23.82 674,787 $ 22.42 _______________________________________________________________________________ (1) The grant date fair value figures in this table represent the fair value of the equity component of the performance share awards. The current portion of the liability, included in accrued liabilities in the Consolidated Balance Sheet at December 31, 2015 was $1.8 million . There was no current liability as of December 31, 2016 . The non-current portion of the liability for the TSR Performance Share Awards, included in other liabilities in the Consolidated Balance Sheet at December 31, 2016 and 2015 , was $2.1 million and $0.9 million , respectively. The Company made cash payments during the years ended December 31, 2016 , 2015 and 2014 of $1.8 million , $7.0 million and $14.3 million , respectively. The following assumptions were used to determine the grant date fair value of the equity component of the TSR Performance Share Awards for the respective periods: Year Ended December 31, 2016 2015 2014 Fair value per performance share award granted during the period $ 18.57 $ 19.29 $ 32.04 Assumptions Stock price volatility 34.4 % 32.3 % 41.3 % Risk free rate of return 0.9 % 1.0 % 0.7 % Expected dividend yield — % 0.3 % 0.2 % The following assumptions were used to determine the fair value of the liability component of the TSR Performance Share Awards for the respective periods: December 31, 2016 2015 2014 Fair value per performance share award at the end of the period $5.59 - $7.10 $2.49 - $6.39 $12.88 - $29.72 Assumptions Stock price volatility 40.4% - 43.0% 33.5% - 37.5% 29.1% - 29.7% Risk free rate of return 0.9% - 1.2% 0.7% - 1.1% 0.3% - 0.7% Expected dividend yield —% —% 0.3% The stock price volatility was calculated using historical closing stock price data for the Company for the period associated with the expected term through the grant date of each award. The risk free rate of return percentages are based on the continuously compounded equivalent of the U.S. Treasury (Nominal 10) within the expected term as measured on the grant date. The expected dividend percentage assumes that the Company will continue to pay a consistent level of dividend each quarter. Other Information Compensation expense recorded for both the equity and liability components of all performance share awards for the years ended December 31, 2016 , 2015 and 2014 was $21.3 million , $18.3 million and $20.8 million , respectively. Total unamortized compensation expense related to the equity component of performance shares at December 31, 2016 was $19.3 million and will be recognized over the next 0.9 years . As of December 31, 2016 , the aggregate intrinsic value for all performance share awards was $55.1 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2016 by the number of unvested performance share awards outstanding. As of December 31, 2016 , the weighted average remaining contractual term of unvested performance share awards outstanding was approximately 1.3 years . On December 31, 2016 , the performance period ended for two types of performance share awards that were granted in 2014 . For the Employee Performance Share Awards, the calculation of the three -year average of the three internal performance metrics was completed in the first quarter of 2017 and was certified by the Compensation Committee in February 2017 . As the Company achieved the three performance metrics, 225,780 shares with a grant date fair value of $8.9 million were issued in February 2017 . For the TSR Performance Share Awards, 157,147 shares with a grant date fair value of $5.0 million were issued based on the Company's ranking relative to a predetermined peer group. There were no cash payments associated with these awards. The calculation of the award payout was certified by the Compensation Committee on January 5, 2017 . Supplemental Employee Incentive Plan The Supplemental Employee Incentive Plan (the Plan) adopted by the Company's Board of Directors is intended to provide a compensation tool tied to stock market value creation to serve as an incentive and retention vehicle for full-time, non-officer employees by providing for cash payments in the event the Company's common stock reaches a specified trading price. The Compensation Committee can increase any of the payments as applied to any employee if desired. Any deferred portion will only be paid if the participant is employed by the Company, or has terminated employment by reason of retirement, death or disability (as provided in the Plan). Payments are subject to certain other restrictions contained in the Plan. The Plan currently provides for a payout if the closing price per share of the Company's common stock for any 20 trading days out of any 60 days consecutive trading days equals or exceeds an interim price goal per share within two years of the effective date of the plan (interim trigger date) or a final price goal per share within four years of the effective date of the plan (final trigger date). Under the Plan and upon approval by the Compensation Committee, each eligible employee may receive a distribution of 20% of base salary if the interim trigger is met or 50% of base salary if the final trigger is met (or an incremental 30% of base salary if the interim trigger was previously achieved). In accordance with the Plan, in the event either the interim or final trigger date occurs within the first 30 months from the effective date, 25% of the total distribution will be paid immediately and the remaining 75% will be deferred and paid at a future date as described in the Plan. For final trigger dates occurring during the last 18 months but before the end of the Plan, total distribution will be paid immediately. The Plan is accounted for as a liability award under the authoritative accounting guidance for stock-based compensation and is valued as of the end of each reporting period on a mark-to-market basis using a Monte Carlo simulation model. In addition to the expected value of plan payouts, the simulation technique also generates an expected trigger date for the two types of payments made under this plan, which is used to determine the requisite service period. The Company recognized compensation expense (benefit) of $(0.3) million and $3.0 million for years ended December 31, 2015 and 2014 , respectively, related to the Plan. The Company did not recognize any compensation expense (benefit) under the Plan for the year ended December 31, 2016 . The Company made payments of $13.0 million under the Plan for year ended December 31, 2014 . Deferred Performance Shares As of December 31, 2016 , 495,774 shares of the Company's common stock representing vested performance share awards were deferred into the deferred compensation plan. During 2016 , 38,400 shares were sold out of the plan. During 2016 , an increase to the deferred compensation liability of $1.8 million was recognized, which represents the increase in the closing price of the Company's shares held in the trust during the period. The increase in compensation expense was included in general and administrative expense in the Consolidated Statement of Operations. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
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. Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive. The following is a calculation of basic and diluted weighted-average shares outstanding: Year Ended December 31, (In thousands) 2016 2015 2014 Weighted-average shares - basic 456,847 413,696 415,840 Dilution effect of stock appreciation rights and stock awards at end of period — — 1,761 Weighted-average shares - diluted 456,847 413,696 417,601 The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect: Year Ended December 31, (In thousands) 2016 2015 2014 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect due to net loss 1,478 1,481 — Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method 1 2 20 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect 1,479 1,483 20 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows: (In thousands) Net Gains (Losses) on Cash Flow Hedges Postretirement Benefits Total Balance at December 31, 2013 $ (6,551 ) $ (1,810 ) $ (8,361 ) Other comprehensive income (loss) before reclassifications (80,175 ) (325 ) (80,500 ) Amounts reclassified from accumulated other comprehensive income (loss) 86,726 (16 ) 86,710 Net current-period other comprehensive income (loss) 6,551 (341 ) 6,210 Balance at December 31, 2014 $ — $ (2,151 ) $ (2,151 ) Other comprehensive income (loss) before reclassifications — 1,786 1,786 Net current-period other comprehensive income — 1,786 1,786 Balance at December 31, 2015 $ — $ (365 ) $ (365 ) Other comprehensive income (loss) before reclassifications — 1,280 1,280 Amounts reclassified from accumulated other comprehensive income (loss) — 70 70 Net current-period other comprehensive income — 1,350 1,350 Balance at December 31, 2016 $ — $ 985 $ 985 Amounts reclassified from accumulated other comprehensive income (loss) into the Consolidated Statement of Operations were as follows: Year Ended December 31, Affected Line Item in the Consolidated Statement of Operations (In thousands) 2016 2015 2014 Net gains (losses) on cash flow hedges Commodity contracts $ — $ — $ (143,577 ) Natural gas revenues Commodity contracts — — (626 ) Crude oil and condensate revenues Postretirement benefits Amortization of prior service cost (111 ) — — General and administrative expense Amortization of net (gain) loss — — 26 General and administrative expense Total before tax (111 ) — (144,177 ) Income (loss) before income taxes 41 — 57,467 Income tax benefit Total reclassifications for the period $ (70 ) $ — $ (86,710 ) Net income (loss) |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Additional Balance Sheet Information Certain balance sheet amounts are comprised of the following: December 31, (In thousands) 2016 2015 Accounts receivable, net Trade accounts $ 185,594 $ 116,772 Joint interest accounts 1,359 2,013 Other accounts 5,335 2,557 192,288 121,342 Allowance for doubtful accounts (1,243 ) (1,113 ) $ 191,045 $ 120,229 Inventories Tubular goods and well equipment $ 11,005 $ 14,685 Natural gas in storage 2,299 2,364 $ 13,304 $ 17,049 Other assets Deferred compensation plan $ 12,587 $ 12,921 Debt issuance cost 11,403 14,871 Derivative instruments 2,991 — Other accounts 58 64 $ 27,039 $ 27,856 Accounts payable Trade accounts $ 27,355 $ 30,038 Natural gas purchases 2,231 2,231 Royalty and other owners 85,449 75,106 Accrued capital costs 34,647 27,479 Taxes other than income 13,827 14,628 Other accounts 4,902 10,925 $ 168,411 $ 160,407 Accrued liabilities Employee benefits $ 14,153 $ 13,870 Taxes other than income 3,829 5,073 Asset retirement obligations 2,000 2,000 Other accounts 1,510 3,980 $ 21,492 $ 24,923 Other liabilities Deferred compensation plan $ 24,169 $ 22,371 Other accounts 4,952 3,653 $ 29,121 $ 26,024 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Year Ended December 31, (In thousands) 2016 2015 2014 Cash paid for interest and income taxes Interest $ 86,723 $ 92,749 $ 58,487 Income taxes 688 7,550 77,029 Non-cash investing activities Change in accrued capital costs 7,168 (194,947 ) 72,603 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Operations | Basis of Presentation and Nature of Operations Cabot Oil & Gas Corporation and its subsidiaries (the Company) are engaged in the development, exploitation, exploration, production and marketing of natural gas, oil and, to a lesser extent, NGLs exclusively within the continental United States. The Company also transports, stores, gathers and purchases natural gas for resale. The Company's exploration and development activities are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. The Company operates in one segment, natural gas and oil development, exploitation and exploration. The Company's oil and gas properties are managed as a whole rather than through discrete operating segments or business units. Operational information is tracked by geographic area; however, financial performance is assessed as a single enterprise and not on a geographic basis. Allocation of resources is made on a project basis across the Company's entire portfolio without regard to geographic areas. The consolidated financial statements include the accounts of the Company and its subsidiaries after eliminating all significant intercompany balances and transactions. Certain reclassifications have been made to prior year statements to conform with current year presentation. These reclassifications have no impact on previously reported stockholders' equity, net income (loss) or cash flows. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid short-term investments with a maturity of three months or less and deposits in money market funds that are readily convertible to cash to be cash equivalents. Cash and cash equivalents were primarily concentrated in two financial institutions at December 31, 2016 . The Company periodically assesses the financial condition of its financial institutions and considers any possible credit risk to be minimal. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company records an allowance for doubtful accounts for receivables that the Company determines to be uncollectible based on the specific identification method. |
Inventories | Inventories Inventories are comprised of natural gas in storage, tubular goods and well equipment and pipeline imbalances. Natural gas in storage and tubular goods and well equipment balances are carried at average cost. Natural gas gathering and pipeline operations normally include imbalance arrangements with the pipeline. The volumes of natural gas due to or from the Company under imbalance arrangements are recorded at actual selling or purchase prices, as the case may be, and are adjusted monthly to market prices. |
Equity Method Investments | Equity Method Investments The Company accounts for its investments in entities over which the Company has significant influence, but not control, using the equity method of accounting. Under the equity method of accounting, the Company increases its investment for contributions made and records its proportionate share of net earnings, declared dividends and partnership distributions based on the most recently available financial statements of the investee. The Company records the activity for its equity method investments on a one month lag. In addition, the Company evaluates its equity method investments for potential impairment whenever events or changes in circumstances indicate that there is an other-than-temporary decline in the value of the investment. |
Properties and Equipment | Properties and Equipment The Company uses the successful efforts method of accounting for oil and gas producing activities. Under this method, acquisition costs for proved and unproved properties are capitalized when incurred. Exploration costs, including geological and geophysical costs, the costs of carrying and retaining unproved properties and exploratory dry hole drilling costs, are expensed. Development costs, including the costs to drill and equip development wells and successful exploratory drilling costs to locate proved reserves are capitalized. Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves. The determination is based on a process which relies on interpretations of available geologic, geophysical, and engineering data. If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well. If a well is determined to be unsuccessful, the capitalized drilling costs will be charged to exploration expense in the Consolidated Statement of Operations in the period the determination is made. If an exploratory well requires a major capital expenditure before production can begin, the cost of drilling the exploratory well will continue to be carried as an asset pending determination of whether reserves have been found only as long as: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well if the required capital expenditure is made and (ii) drilling of an additional exploratory well is under way or firmly planned for the near future. If drilling in the area is not under way or firmly planned, or if the well has not found a commercially producible quantity of reserves, the exploratory well is assumed to be impaired and its costs are charged to exploration expense. Development costs of proved oil and gas properties, including estimated dismantlement, restoration and abandonment costs and acquisition costs, are depreciated and depleted on a field basis by the units-of-production method using proved developed and proved reserves, respectively. Properties related to gathering and pipeline systems and equipment are depreciated using the straight-line method based on estimated useful lives ranging from 10 to 25 years. Generally pipeline and transmission systems are depreciated over 12 to 25 years, gathering and compression equipment is depreciated over 10 years and storage equipment and facilities are depreciated over 10 to 16 years. Buildings are depreciated on a straight-line basis over 25 to 40 years. Certain other assets are depreciated on a straight-line basis over 3 to 10 years. Costs of sold or abandoned properties that make up a part of an amortization base (partial field) remain in the amortization base if the units-of-production rate is not significantly affected. If significant, a gain or loss, if any, is recognized and the sold or abandoned properties are retired. A gain or loss, if any, is also recognized when a group of proved properties (entire field) that make up the amortization base has been retired, abandoned or sold. The Company evaluates its proved oil and gas properties for impairment whenever events or changes in circumstances indicate an asset's carrying amount may not be recoverable. The Company compares expected undiscounted future cash flows to the net book value of the asset. If the future undiscounted expected cash flows, based on estimates of future natural gas and crude oil prices, operating costs and anticipated production from proved reserves and risk-adjusted probable and possible reserves, are lower than the net book value of the asset, the capitalized cost is reduced to fair value. Commodity pricing is estimated by using a combination of assumptions management uses in its budgeting and forecasting process as well as historical and current prices adjusted for geographical location and quality differentials, as well as other factors that management believes will impact realizable prices. Fair value is calculated by discounting the future cash flows. The discount factor used is based on rates utilized by market participants that are commensurate with the risks inherent in the development and production of the underlying natural gas and oil. Unproved oil and gas properties are assessed periodically for impairment on an aggregate basis through periodic updates to the Company's undeveloped acreage amortization based on past drilling and exploration experience, the Company's expectation of converting leases to held by production and average property lives. Average property lives are determined on a geographical basis and based on the estimated life of unproved property leasehold rights. During 2016 , 2015 and 2014 , amortization associated with the Company's unproved properties was $25.0 million , $41.4 million and $17.4 million , respectively, and is included in depreciation, depletion, and amortization in the Consolidated Statement of Operations. |
Asset Retirement Obligations | Asset Retirement Obligations The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset. The asset retirement costs are depreciated using the units-of-production method. The majority of the asset retirement obligations recorded by the Company relate to the plugging and abandonment of oil and gas wells. However, liabilities are also recorded for meter stations, pipelines, processing plants and compressors. At December 31, 2016 , there were no assets legally restricted for purposes of settling asset retirement obligations. Additional retirement obligations increase the liability associated with new oil and gas wells and other facilities as these obligations are incurred. Accretion expense is included in depreciation, depletion and amortization expense in the Consolidated Statement of Operations. |
Derivative and Hedging Activities | Derivative Instruments and Hedging Activities The Company enters into derivative contracts, primarily swaps, collars and basis swaps, to manage its exposure to price fluctuations on a portion of its anticipated future natural gas and oil production. The Company’s credit agreement restricts the ability of the Company to enter into commodity derivatives other than to hedge or mitigate risks to which the Company has actual or projected exposure or as permitted under the Company’s risk management policies and where such derivatives do not subject the Company to material speculative risks. All of the Company’s derivatives are used for risk management purposes and are not held for trading purposes. All derivatives are recognized on the balance sheet and are measured at fair value. At the end of each quarterly period, these derivatives are marked-to-market. If the derivative does not qualify or is not designated as a cash flow hedge, changes in the fair value of the derivative are recognized in income. If the derivative qualifies and is designated as a cash flow hedge, changes in the fair value of the derivative are deferred in accumulated other comprehensive income to the extent the hedge is effective. For derivatives that qualify and are designated as a cash flow hedges, the hedging relationship between the hedging instruments and hedged items must be highly effective in achieving the offset of changes in cash flows attributable to the hedged risk, both at the inception of the hedge and on an ongoing basis. The Company measures hedge effectiveness on a quarterly basis. Hedge accounting is discontinued prospectively if and when a hedging instrument becomes ineffective. Gains and losses deferred in accumulated other comprehensive income related to cash flow hedges that become ineffective remain unchanged until the related production occurs. If the Company determines that it is probable that a forecasted hedged transaction will not occur, deferred gains or losses on the related hedging instrument are recognized in income immediately. Gains and losses on derivatives designated as cash flow hedges are included in natural gas and crude oil and condensate revenues. Gains and losses on derivatives which represent hedge ineffectiveness and gains and losses on derivatives not designated or that do not qualify for hedge accounting are included in operating revenues in gain (loss) on derivative instruments. The resulting cash flows are reported as cash flows from operating activities. |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The Company follows the authoritative accounting guidance for measuring fair value of assets and liabilities in its financial statements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. The Company is able to classify fair value balances based on the observability of these inputs. The authoritative guidance for fair value measurements establishes three levels of the fair value hierarchy, defined as follows: • Level 1: Unadjusted, quoted prices for identical assets or liabilities in active markets. • Level 2: Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly for substantially the full term of the asset or liability. • Level 3: Significant, unobservable inputs for use when little or no market data exists, requiring a significant degree of judgment. The hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. Depending on the particular asset or liability, input availability can vary depending on factors such as product type, longevity of a product in the market and other particular transaction conditions. In some cases, certain inputs used to measure fair value may be categorized into different levels of the fair value hierarchy. For disclosure purposes under the accounting guidance, the lowest level that contains significant inputs used in the valuation should be chosen. |
Revenue Recognition | Revenue Recognition Natural gas and oil sales result from interests in oil and gas properties owned by the Company. Sales of natural gas and oil are recognized when the product is delivered and title transfers to the purchaser. Payment is generally received one to three months after the sale has occurred. Producer Gas Imbalances. The Company applies the sales method of accounting for natural gas revenue. Under this method, revenues are recognized based on the actual volume of natural gas sold to purchasers. Natural gas production operations may include joint owners who take more or less than the production volumes entitled to them on certain properties. Production volume is monitored to minimize these natural gas imbalances. Under this method, a natural gas imbalance liability is recorded if the Company's excess takes of natural gas exceed its estimated remaining proved developed reserves for these properties at the actual price realized upon the gas sale. A receivable is recognized only to the extent an imbalance cannot be recouped from the reserves in the underlying properties. The Company’s aggregate imbalance positions at December 31, 2016 and 2015 were not material. Brokered Natural Gas. Revenues and expenses related to brokering natural gas are reported gross as part of operating revenues and operating expenses in accordance with applicable accounting standards. The Company buys and sells natural gas utilizing separate purchase and sale transactions, typically with separate counterparties, whereby the Company and/or the counterparty takes title to the natural gas purchased or sold. |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the estimated future tax consequences attributable to the differences between the financial carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. The Company is required to make judgments, including estimating reserves for potential adverse outcomes regarding tax positions that the Company has taken. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return. The tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination by taxing authorities based on technical merits of the position. The amount of the tax benefit recognized is the largest amount of the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The effective tax rate and the tax basis of assets and liabilities reflect management's estimates of the ultimate outcome of various tax uncertainties. The Company recognizes accrued interest related to uncertain tax positions in interest expense and accrued penalties related to such positions in general and administrative expense in the Consolidated Statement of Operations. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation under the fair value method of accounting. Under this method, compensation cost is measured at the grant date for equity-classified awards and remeasured each reporting period for liability-classified awards based on the fair value of an award and is recognized over the service period, which is generally the vesting period. To calculate fair value, the Company uses either a Monte Carlo or Black-Scholes valuation model depending on the specific provisions of the award. Stock-based compensation cost for all types of awards is included in general and administrative expense in the Consolidated Statement of Operations. The tax benefit for stock-based compensation is included as both a cash outflow from operating activities and a cash inflow from financing activities in the Consolidated Statement of Cash Flows. The Company recognizes a tax benefit only to the extent it reduces the Company's income taxes payable. |
Environmental Matters | Environmental Matters Environmental expenditures are expensed or capitalized, as appropriate, depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations, and that do not have future economic benefit are expensed. Liabilities related to future costs are recorded on an undiscounted basis when environmental assessments and/or remediation activities are probable and the costs can be reasonably estimated. Any insurance recoveries are recorded as assets when received. |
Credit and Concentration Risk | Credit and Concentration Risk Substantially all of the Company's accounts receivable result from the sale of natural gas and oil and joint interest billings to third parties in the oil and gas industry. This concentration of purchasers and joint interest owners may impact the Company's overall credit risk, either positively or negatively, in that these entities may be similarly affected by changes in economic or other conditions. The Company does not anticipate any material impact on its financial results due to non-performance by the third parties. |
Use of Estimates | Use of Estimates In preparing financial statements, the Company follows accounting principles generally accepted in the United States. These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The most significant estimates pertain to proved natural gas and oil reserves and related cash flow estimates which are used to compute depreciation, depletion and amortization and impairments of proved oil and gas properties. Other significant estimates include natural gas and oil revenues and expenses, fair value of derivative instruments, estimates of expenses related to legal, environmental and other contingencies, asset retirement obligations, postretirement obligations, stock-based compensation and deferred income taxes. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements Debt Issuance Costs. 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. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. The update provides authoritative guidance for debt issuance costs related to line-of-credit arrangements, noting the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The guidance is effective for interim and annual periods beginning after December 15, 2015. Effective January 1, 2016, the Company adopted ASU No. 2015-03 as a change in accounting principle. The Consolidated Balance Sheet as of December 31, 2015 has been retrospectively adjusted to reflect the adoption of this guidance, resulting in a decrease of $8.9 million in both other assets and long-term debt related to the debt issuance costs on the Company's senior notes. There was no impact to the Company's Consolidated Statement of Operations or Statement of Cash Flows. Going Concern. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern. This guidance requires management to evaluate, for each reporting period, whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued. Management will have to make certain disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the entity’s ability to continue as a going concern. This guidance is effective for annual reporting periods ending after December 15, 2016, and for annual periods and interim periods thereafter, with earlier adoption permitted. Effective December 31, 2016, the Company adopted ASU No. 2014-15. The adoption of this guidance did not have an impact on the Company's Consolidated Financial Statements or Notes to the Consolidated Financial Statements. Recently Issued Accounting Pronouncements Financial Instruments. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall, as an amendment to Accounting Standards Codification (ASC) Subtopic 825-10. The amendments in this update address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Among other items, this update will simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. This impairment assessment reduces the complexity of the other-than-temporary impairment guidance that entities follow currently. The guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption of this amendment is not permitted. The adoption of this guidance will change the methodology that the Company uses to evaluate its equity method investments for impairment. The Company is currently evaluating the effect that adopting this guidance will have on its financial position, results of operation or cash flows. Stock-Based Compensation. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, as an amendment to ASC Topic 718. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted. An entity that elects early adoption must adopt all of the amendments in the same period. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. An entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. The Company adopted this guidance effective January 1, 2017. The recognition of previously unrecognized windfall tax benefits resulted in a cumulative-effect adjustment of $42.2 million , which increased retained earnings and decreased net deferred tax liabilities by the same amount as of the beginning of 2017. Effective January 1, 2017, cash paid by the Company when directly withholding shares from employee awards for tax-withholding purposes will be classified as a financing activity. This change will be recognized retrospectively beginning January 1, 2017. The effect of this change resulted in an increase in net cash provided by operating activities of $5.1 million and $8.9 million for the years ended December 31, 2016 and 2015 , respectively. In addition, net cash provided by financing activities decreased by $5.1 million and $8.9 million for the years ended December 31, 2016 and 2015 , respectively. The remaining provisions of this amendment will not have a material effect on the Company's financial position or results of operations. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases, as a new Topic, ASC Topic 842. The new lease guidance supersedes Topic 840. The core principle of the guidance is that a company should recognize the assets and liabilities that arise from leases. This ASU does not apply to leases to explore for or use minerals, oil, natural gas and similar nonregenerative resources, including the intangible right to explore for those natural resources and rights to use the land in which those natural resources are contained. The guidance is effective for interim and annual periods beginning after December 15, 2018. This ASU can be adopted using a modified retrospective approach. The Company is currently evaluating the effect that adopting this guidance will have on its financial position, results of operations or cash flows. Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as a new Topic, ASC 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. Additionally, in March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus agent considerations (reporting revenue gross versus net), which clarifies the implementation guidance on principal versus agent considerations on such matters. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying performance obligations and licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-scope improvements and practical expedients, which addresses narrow-scope improvements to the guidance on collectibility, non-cash consideration, and completed contracts at transition. Additionally, the amendments in this update provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which clarifies the guidance or corrects unintended application of guidance. The Company is currently evaluating the effect that adopting this guidance will have on its financial position, results of operations or cash flows. Statement of Cash Flows. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance addresses eight specific cash flow issues for which current GAAP is either unclear or does not include specific guidance. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted, provided that all of the amendments are adopted in the same period. This ASU must be adopted using a retrospective transition method. The Company is currently evaluating the effect that adopting this guidance will have on its presentation of cash flows. Adopting the guidance is expected to have no effect on the Company's financial position or results of operations. Accounting Changes and Error Corrections. In January 2017, the FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Venture (Topic 323), which states that registrants should consider additional qualitative disclosures if the impact of an issued but not yet adopted ASU is unknown or cannot be reasonably estimated and to include a description of the effect of the accounting policies that the registrant expects to apply, if determined. Transition guidance in certain issued but not yet adopted ASUs, including Leases and Revenue Recognition, was also updated to reflect this amendment. This guidance is effective immediately. |
Properties and Equipment, Net (
Properties and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of net property and equipment | Properties and equipment, net are comprised of the following: December 31, (In thousands) 2016 2015 Proved oil and gas properties $ 7,437,604 $ 8,821,146 Unproved oil and gas properties 260,543 390,434 Gathering and pipeline systems 187,846 243,672 Land, building and other equipment 84,462 117,848 7,970,455 9,573,100 Accumulated depreciation, depletion and amortization (3,720,330 ) (4,596,221 ) $ 4,250,125 $ 4,976,879 |
Schedule of net changes in capitalized exploratory well costs | The following table reflects the net changes in capitalized exploratory well costs: Year Ended December 31, (In thousands) 2016 2015 2014 Balance at beginning of period $ — $ 10,557 $ — Additions to capitalized exploratory well costs pending the determination of proved reserves — 10,557 Reclassifications to wells, facilities, and equipment based on the determination of proved reserves — (10,557 ) — Capitalized exploratory well costs charged to expense — — — Balance at end of period $ — $ — $ 10,557 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Activity Related to Equity Method Investments | Activity related to these equity method investments is as follows: Constitution Meade Total Year Ended December 31, Year Ended December 31, Year Ended December 31, (In thousands) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Balance at beginning of period $ 90,345 $ 64,268 $ 26,892 $ 13,172 $ 3,761 $ — $ 103,517 $ 68,029 $ 26,892 Contributions 8,975 19,625 34,200 19,509 9,448 3,857 28,484 29,073 38,057 Earnings (loss) on equity method investments (2,470 ) 6,452 3,176 (7 ) (37 ) (96 ) (2,477 ) 6,415 3,080 Balance at end of period $ 96,850 $ 90,345 $ 64,268 $ 32,674 $ 13,172 $ 3,761 $ 129,524 $ 103,517 $ 68,029 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt and credit agreements | The notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 245,000,000 10 years July 2018 6.44 % Tranche 2 $ 100,000,000 12 years July 2020 6.54 % Tranche 3 $ 80,000,000 15 years July 2023 6.69 % The notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 88,000,000 10 years January 2021 5.42 % Tranche 2 $ 25,000,000 12 years January 2023 5.59 % Tranche 3 $ 62,000,000 15 years January 2026 5.80 % The notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 100,000,000 7 years September 2021 3.24 % Tranche 2 $ 575,000,000 10 years September 2024 3.67 % Tranche 3 $ 250,000,000 12 years September 2026 3.77 % The Company's debt and credit agreements consisted of the following: December 31, (In thousands) 2016 2015 7.33% weighted-average senior notes (1) $ — $ 20,000 6.51% weighted-average senior notes 361,000 425,000 9.78% senior notes 67,000 67,000 5.58% weighted-average senior notes 175,000 175,000 3.65% weighted-average senior notes 925,000 925,000 Revolving credit facility — 413,000 $ 1,528,000 $ 2,025,000 Unamortized debt issuance costs (7,470 ) (8,861 ) $ 1,520,530 $ 2,016,139 (1) Includes $20.0 million of current portion of long-term debt at December 31, 2015 . |
Derivative Instruments and He31
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding commodity derivatives | As of December 31, 2016 , the Company had the following outstanding commodity derivatives instruments: Collars Floor Ceiling Swaps Basis Swaps Type of Contract Volume Contract Period Range Weighted-Average Range Weighted- Average Weighted- Average Weighted- Average Natural gas 35.5 Bcf Jan. 2017 - Dec. 2017 $ 3.12 Natural gas 16.2 Bcf Feb. 2017 - Dec. 2017 $ 3.46 Natural gas 35.5 Bcf Jan. 2017 - Dec. 2017 $— $ 3.09 $3.42-$3.45 $ 3.43 Natural gas 21.3 Bcf Jan. 2018 - Dec. 2019 $ 0.42 Crude oil 1.8 Mmbbl Jan. 2017 - Dec. 2017 $— $ 50.00 $56.25-$56.50 $ 56.39 |
Effect of Derivative Instruments on the Consolidated Balance Sheet | Effect of Derivative Instruments on the Consolidated Balance Sheet Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities December 31, December 31, (In thousands) Balance Sheet Location 2016 2015 2016 2015 Commodity contracts Other assets (non-current) $ 2,991 $ — $ — $ — Commodity contracts Derivative instruments (current) — — 40,259 — $ 2,991 $ — $ 40,259 $ — |
Schedule of offsetting of derivative liabilities in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet December 31, (In thousands) 2016 2015 Derivative assets Gross amounts of recognized assets $ 2,991 $ — Gross amounts offset in the statement of financial position — — Net amounts of assets presented in the statement of financial position 2,991 — Gross amounts of financial instruments not offset in the statement of financial position — — Net amount $ 2,991 $ — Derivative liabilities Gross amounts of recognized liabilities $ 40,259 $ — Gross amounts offset in the statement of financial position — — Net amounts of liabilities presented in the statement of financial position 40,259 — Gross amounts of financial instruments not offset in the statement of financial position 757 — Net amount $ 41,016 $ — |
Schedule of offsetting of derivative assets in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet December 31, (In thousands) 2016 2015 Derivative assets Gross amounts of recognized assets $ 2,991 $ — Gross amounts offset in the statement of financial position — — Net amounts of assets presented in the statement of financial position 2,991 — Gross amounts of financial instruments not offset in the statement of financial position — — Net amount $ 2,991 $ — Derivative liabilities Gross amounts of recognized liabilities $ 40,259 $ — Gross amounts offset in the statement of financial position — — Net amounts of liabilities presented in the statement of financial position 40,259 — Gross amounts of financial instruments not offset in the statement of financial position 757 — Net amount $ 41,016 $ — |
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: Year Ended December 31, (In thousands) 2016 2015 2014 Commodity contracts $ — $ — $ (133,310 ) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) | The effective portion of gain (loss) reclassified from accumulated other comprehensive income (loss) into income is as follows: Year Ended December 31, (In thousands) 2016 2015 2014 (1) Natural gas revenues $ — $ — $ (143,577 ) Crude oil and condensate revenues — — (626 ) $ — $ — $ (144,203 ) (1) The Company ceased hedge accounting effective April 1, 2014. As a result, a loss of approximately $73.4 million related to amounts previously frozen in accumulated other comprehensive income (loss) was reclassified into income during 2014. |
Effect of Derivative Instruments on the Consolidated Statement of Operations | Effect of Derivative Instruments on the Consolidated Statement of Operations Year Ended December 31, (In thousands) 2016 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 (1) $ — $ — $ (73,020 ) Crude oil and condensate (1) — — (408 ) Gain (loss) on derivative instruments (1,682 ) 194,289 81,716 Non-cash gain (loss) on derivative instruments Gain (loss) on derivative instruments (37,268 ) (137,603 ) 137,603 $ (38,950 ) $ 56,686 $ 145,891 $ (38,950 ) $ 56,686 $ 75,116 (1) Relates entirely to the reclassification from accumulated other comprehensive income (loss) of previously frozen losses associated with derivatives that were de-designated as cash flow hedges on April 1, 2014. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 Assets Deferred compensation plan $ 12,587 $ — $ — $ 12,587 Derivative instruments — — 2,991 2,991 Total assets $ 12,587 $ — $ 2,991 $ 15,578 Liabilities Deferred compensation plan $ 24,169 $ — $ — $ 24,169 Derivative instruments — 21,400 18,859 40,259 Total liabilities $ 24,169 $ 21,400 $ 18,859 $ 64,428 (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 Assets Deferred compensation plan $ 12,921 $ — $ — $ 12,921 Total assets $ 12,921 $ — $ — $ 12,921 Liabilities Deferred compensation plan $ 22,371 $ — $ — $ 22,371 Total liabilities $ 22,371 $ — $ — $ 22,371 |
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: Year Ended December 31, (In thousands) 2016 2015 2014 Balance at beginning of period $ — $ 85,958 $ (3,910 ) Total gains (losses) (realized or unrealized): Included in earnings (17,886 ) 32,864 35,067 Included in other comprehensive income — — 3,755 Settlements 2,018 (118,822 ) 51,046 Transfers in and/or out of level 3 — — — Balance at end of period $ (15,868 ) $ — $ 85,958 Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ (15,868 ) $ — $ 85,958 |
Carrying amounts and fair values of long-term debt | The carrying amount and fair value of debt is as follows : December 31, 2016 December 31, 2015 (In thousands) Carrying Amount Estimated Fair Value Carrying Estimated Fair Value Long-term debt $ 1,520,530 $ 1,463,643 $ 2,016,139 $ 1,839,530 Current maturities — — (20,000 ) (20,378 ) Long-term debt, excluding current maturities $ 1,520,530 $ 1,463,643 $ 1,996,139 $ 1,819,152 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Activity related to the Company's asset retirement obligations is as follows: (In thousands) Year Ended Balance at beginning of period $ 145,606 Liabilities incurred 3,522 Liabilities settled (1,148 ) Liabilities divested (24,338 ) Accretion expense 8,065 Change in estimate 2,026 Balance at end of period $ 133,733 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum obligations under transportation and gathering agreements | As of December 31, 2016 , the Company's future minimum obligations under transportation and gathering agreements are as follows: (In thousands) 2017 $ 148,061 2018 167,749 2019 155,904 2020 150,522 2021 150,110 Thereafter 1,071,827 $ 1,844,173 |
Future minimum rental commitments under non-cancelable leases | Future minimum rental commitments under non-cancelable leases in effect at December 31, 2016 are as follows: (In thousands) 2017 $ 7,244 2018 6,727 2019 6,363 2020 5,889 2021 4,783 Thereafter 6,203 $ 37,209 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of income tax benefit | Income tax benefit is summarized as follows: Year Ended December 31, (In thousands) 2016 2015 2014 Current Federal $ (9,920 ) $ 983 $ 44,887 State (1,848 ) (1,397 ) (4,387 ) (11,768 ) (414 ) 40,500 Deferred Federal (218,357 ) (72,869 ) (32,375 ) State (12,350 ) (99 ) (80,192 ) (230,707 ) (72,968 ) (112,567 ) Income tax benefit $ (242,475 ) $ (73,382 ) $ (72,067 ) |
Schedule of reconciliation of actual provision for income taxes and provision for income taxes computed by applying the statutory federal income tax rate | Income tax benefit was different than the amounts computed by applying the statutory federal income tax rate as follows: Year Ended December 31, 2016 2015 2014 (In thousands, except rates) Amount Rate Amount Rate Amount Rate Computed "expected" federal income tax $ (230,860 ) 35.00 % $ (65,546 ) 35.00 % $ 11,341 35.00 % State income tax, net of federal income tax benefit (10,888 ) 1.65 % (3,152 ) 1.68 % 903 2.79 % Deferred tax adjustment related to change in overall state tax rate (663 ) 0.10 % 2,822 (1.51 )% (86,956 ) (268.36 )% Valuation allowance 221 (0.03 )% 187 (0.10 )% 3,977 12.27 % Uncertain tax positions — — % — — % (1,974 ) (6.09 )% Provision to return adjustments (121 ) 0.02 % (6,326 ) 3.38 % (791 ) (2.44 )% Other, net (164 ) 0.02 % (1,367 ) 0.73 % 1,433 4.42 % Income tax benefit $ (242,475 ) 36.76 % $ (73,382 ) 39.18 % $ (72,067 ) (222.41 )% |
Schedule of deferred tax liabilities and deferred tax assets | The composition of net deferred tax liabilities is as follows: December 31, (In thousands) 2016 2015 Deferred Tax Assets Net operating losses $ 352,001 $ 223,402 Alternative minimum tax credits 218,773 228,693 Foreign tax credits 3,816 3,837 Derivative instruments 13,771 — Incentive compensation 22,852 22,509 Deferred compensation 8,217 7,869 Post-retirement benefits 13,865 13,556 Other 2,743 2,905 Less: valuation allowance (5,186 ) (4,965 ) Total 630,852 497,806 Deferred Tax Liabilities Properties and equipment 1,207,545 1,303,840 Equity method investments 2,754 1,202 Total 1,210,299 1,305,042 Net deferred tax liabilities $ 579,447 $ 807,236 |
Schedule of reconciliation of the beginning and ending amounts of unrecognized tax benefits | A reconciliation of unrecognized tax benefits is as follows: Year Ended December 31, (In thousands) 2016 2015 2014 Balance at beginning of year $ 663 $ 663 $ 3,700 Additions based on tax provisions related to the current year — — — Additions for tax positions of prior years — — — Reductions for tax positions of prior years — — (3,037 ) Settlements — — — Balance at end of year $ 663 $ 663 $ 663 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Change in the projected benefit obligation, plan assets at fair value and funded status | The change in the Company's postretirement benefit obligation is as follows: Year Ended December 31, (In thousands) 2016 2015 2014 Change in Benefit Obligation Benefit obligation at beginning of year $ 36,626 $ 37,076 $ 34,995 Service cost 2,323 1,808 1,295 Interest cost 1,498 1,448 1,343 Actuarial (gain) loss (2,846 ) (2,829 ) 373 Benefits paid (934 ) (877 ) (930 ) Plan amendments 815 — — Benefit obligation at end of year $ 37,482 $ 36,626 $ 37,076 Change in Plan Assets Fair value of plan assets at end of year — — — Funded status at end of year $ (37,482 ) $ (36,626 ) $ (37,076 ) |
Schedule of amounts recognized in the balance sheet | Amounts recognized in the balance sheet consist of the following: December 31, (In thousands) 2016 2015 2014 Current liabilities $ 1,223 $ 1,333 $ 1,249 Long-term liabilities 36,259 35,293 35,827 $ 37,482 $ 36,626 $ 37,076 |
Schedule of amounts recognized in accumulated other comprehensive income | Amounts recognized in accumulated other comprehensive income (loss) consist of the following: December 31, (In thousands) 2016 2015 2014 Net actuarial (gain) loss $ (2,266 ) $ 580 $ 3,408 Prior service cost 704 — — $ (1,562 ) $ 580 $ 3,408 Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Loss) Year Ended December 31, (In thousands) 2016 2015 2014 Components of Net Periodic Postretirement Benefit Cost Service cost $ 2,323 $ 1,808 $ 1,295 Interest cost 1,498 1,448 1,343 Amortization of prior service cost 111 — — Amortization of net loss — — (26 ) Net periodic postretirement cost $ 3,932 $ 3,256 $ 2,612 Other Changes in Benefit Obligations Recognized in Other Comprehensive Income (Loss) Net (gain) loss $ (2,846 ) $ (2,829 ) $ 373 Prior service cost 815 — — Amortization of prior service cost (111 ) — — Amortization of net loss — — 26 Total recognized in other comprehensive income (2,142 ) (2,829 ) 399 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 1,790 $ 427 $ 3,011 |
Assumptions to determine projected postretirement benefit obligations and postretirement costs | Assumptions used to determine projected postretirement benefit obligations and postretirement costs are as follows: December 31, 2016 2015 2014 Discount rate (1) 4.30 % 4.25 % 4.00 % Health care cost trend rate for medical benefits assumed for next year (pre-65) 7.50 % 5.50 % 6.00 % Health care cost trend rate for medical benefits assumed for next year (post-65) 5.00 % 5.50 % 6.00 % Ultimate trend rate (pre-65) 4.50 % 4.50 % 4.50 % Ultimate trend rate (post-65) 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate (pre-65) 2023 2018 2018 Year that the rate reaches the ultimate trend rate (post-65) 2018 2018 2018 _______________________________________________________________________________ (1) Represents the year end rates used to determine the projected benefit obligation. To compute postretirement cost in 2016 , 2015 and 2014 , respectively, the beginning of year discount rates of 4.25% , 4.00% and 4.75% were used. |
Effect of a one-percentage-point change in assumed health care cost trend rates | Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: (In thousands) 1-Percentage-Point Increase 1-Percentage-Point Decrease Effect on total of service and interest cost $ 968 $ (721 ) Effect on postretirement benefit obligation 6,828 (5,338 ) |
Schedule of estimated benefit payments | The following estimated benefit payments under the Company's postretirement plans, which reflect expected future service, are expected to be paid as follows: (In thousands) 2017 1,249 2018 1,344 2019 1,488 2020 1,625 2021 1,708 Years 2022 - 2026 10,489 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Activity | The following table is a summary of restricted stock award activity: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 49,825 $ 33.76 49,869 $ 33.40 27,806 $ 20.53 Granted — — 5,900 25.44 47,500 34.76 Vested (6,650 ) 33.02 (5,944 ) 22.55 (17,437 ) 15.84 Forfeited — — — — (8,000 ) 35.00 Outstanding at end of period (1)(2) 43,175 $ 33.87 49,825 $ 33.76 49,869 $ 33.40 _______________________________________________________________________________ (1) As of December 31, 2016 , the aggregate intrinsic value was $1.0 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2016 by the number of non-vested restricted stock awards outstanding. (2) As of December 31, 2016 , the weighted average remaining contractual term of non-vested restricted stock awards outstanding was 0.3 years . The following table is a summary of restricted stock unit activity: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 425,438 $ 13.81 604,214 $ 12.48 566,321 $ 10.75 Granted and fully vested 69,302 20.62 51,292 27.87 37,893 38.28 Issued (146,202 ) 14.17 (230,068 ) 13.45 — — Forfeited — — — — — — Outstanding at end of period (1)(2) 348,538 $ 15.01 425,438 $ 13.81 604,214 $ 12.48 _______________________________________________________________________________ (1) As of December 31, 2016 , the aggregate intrinsic value was $8.1 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2016 by the number of outstanding restricted stock units. (2) Due to the immediate vesting of the units and the unknown term of each director, the weighted-average remaining contractual term in years has not been provided. |
Summary of SAR activity | The following table is a summary of SAR activity: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Outstanding at beginning of period 558,546 $ 12.52 667,764 $ 12.63 667,764 $ 12.63 Granted — — — — — — Exercised (75,260 ) 9.19 (109,218 ) 13.19 — — Forfeited or expired — — — — — — Outstanding at end of period (1) 483,286 $ 13.04 558,546 $ 12.52 667,764 $ 12.63 Exercisable at end of period (2) 483,286 $ 13.04 558,546 $ 12.52 590,960 $ 11.98 _______________________________________________________________________________ (1) The intrinsic value of a SAR is the amount which the current market value of the underlying stock exceeds the exercise price of the SAR. As of December 31, 2016 , the aggregate intrinsic value and weighted-average remaining contractual term of SARs outstanding was $5.0 million and 1.5 years , respectively. (2) As of December 31, 2016 , the aggregate intrinsic value and weighted-average remaining contractual term of SARs exercisable was $5.0 million and 1.5 years , respectively. |
Schedule of Performance Share Awards Activity | The following table is a summary of activity for the Hybrid Performance Share Awards: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 372,385 $ 30.37 329,061 $ 29.27 450,212 $ 18.96 Granted 271,938 20.49 194,947 27.71 123,257 39.43 Issued and fully vested (164,539 ) 29.34 (151,623 ) 24.56 (244,408 ) 15.41 Forfeited — — — — — — Outstanding at end of period 479,784 $ 25.12 372,385 $ 30.37 329,061 $ 29.27 The following table is a summary of activity for Employee Performance Share Awards: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 925,590 $ 30.23 1,088,960 $ 25.18 1,657,980 $ 16.25 Granted 435,990 20.49 349,780 27.71 241,130 39.43 Issued and fully vested (340,960 ) 26.62 (504,620 ) 17.59 (751,780 ) 10.19 Forfeited (27,090 ) 27.77 (8,530 ) 31.11 (58,370 ) 23.57 Outstanding at end of period 993,530 $ 27.26 925,590 $ 30.23 1,088,960 $ 25.18 The following table is a summary of activity for the TSR Performance Share Awards: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Grant Date Fair Value per Share (1) Shares Weighted- Average Grant Date Fair Value per Share (1) Shares Weighted- Average Grant Date Fair Value per Share (1) Outstanding at beginning of period 732,286 $ 23.82 674,787 $ 22.42 860,686 $ 14.06 Granted 407,907 18.57 292,421 19.29 184,885 32.04 Issued and fully vested (254,980 ) 23.06 (234,922 ) 14.16 (370,784 ) 7.81 Forfeited — — — — — — Outstanding at end of period 885,213 $ 21.62 732,286 $ 23.82 674,787 $ 22.42 _______________________________________________________________________________ (1) The grant date fair value figures in this table represent the fair value of the equity component of the performance share awards. |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following assumptions were used to determine the grant date fair value of the equity component of the TSR Performance Share Awards for the respective periods: Year Ended December 31, 2016 2015 2014 Fair value per performance share award granted during the period $ 18.57 $ 19.29 $ 32.04 Assumptions Stock price volatility 34.4 % 32.3 % 41.3 % Risk free rate of return 0.9 % 1.0 % 0.7 % Expected dividend yield — % 0.3 % 0.2 % The following assumptions were used to determine the fair value of the liability component of the TSR Performance Share Awards for the respective periods: December 31, 2016 2015 2014 Fair value per performance share award at the end of the period $5.59 - $7.10 $2.49 - $6.39 $12.88 - $29.72 Assumptions Stock price volatility 40.4% - 43.0% 33.5% - 37.5% 29.1% - 29.7% Risk free rate of return 0.9% - 1.2% 0.7% - 1.1% 0.3% - 0.7% Expected dividend yield —% —% 0.3% |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: Year Ended December 31, (In thousands) 2016 2015 2014 Weighted-average shares - basic 456,847 413,696 415,840 Dilution effect of stock appreciation rights and stock awards at end of period — — 1,761 Weighted-average shares - diluted 456,847 413,696 417,601 |
Calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect | The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect: Year Ended December 31, (In thousands) 2016 2015 2014 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect due to net loss 1,478 1,481 — Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method 1 2 20 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect 1,479 1,483 20 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive income (loss) by component, net of tax | Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows: (In thousands) Net Gains (Losses) on Cash Flow Hedges Postretirement Benefits Total Balance at December 31, 2013 $ (6,551 ) $ (1,810 ) $ (8,361 ) Other comprehensive income (loss) before reclassifications (80,175 ) (325 ) (80,500 ) Amounts reclassified from accumulated other comprehensive income (loss) 86,726 (16 ) 86,710 Net current-period other comprehensive income (loss) 6,551 (341 ) 6,210 Balance at December 31, 2014 $ — $ (2,151 ) $ (2,151 ) Other comprehensive income (loss) before reclassifications — 1,786 1,786 Net current-period other comprehensive income — 1,786 1,786 Balance at December 31, 2015 $ — $ (365 ) $ (365 ) Other comprehensive income (loss) before reclassifications — 1,280 1,280 Amounts reclassified from accumulated other comprehensive income (loss) — 70 70 Net current-period other comprehensive income — 1,350 1,350 Balance at December 31, 2016 $ — $ 985 $ 985 |
Schedule of amount reclassified from accumulated other comprehensive income (loss) into the Condensed Consolidated Statement of Operations | Amounts reclassified from accumulated other comprehensive income (loss) into the Consolidated Statement of Operations were as follows: Year Ended December 31, Affected Line Item in the Consolidated Statement of Operations (In thousands) 2016 2015 2014 Net gains (losses) on cash flow hedges Commodity contracts $ — $ — $ (143,577 ) Natural gas revenues Commodity contracts — — (626 ) Crude oil and condensate revenues Postretirement benefits Amortization of prior service cost (111 ) — — General and administrative expense Amortization of net (gain) loss — — 26 General and administrative expense Total before tax (111 ) — (144,177 ) Income (loss) before income taxes 41 — 57,467 Income tax benefit Total reclassifications for the period $ (70 ) $ — $ (86,710 ) Net income (loss) |
Additional Balance Sheet Info40
Additional Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Certain balance sheet amounts are comprised of the following: December 31, (In thousands) 2016 2015 Accounts receivable, net Trade accounts $ 185,594 $ 116,772 Joint interest accounts 1,359 2,013 Other accounts 5,335 2,557 192,288 121,342 Allowance for doubtful accounts (1,243 ) (1,113 ) $ 191,045 $ 120,229 Inventories Tubular goods and well equipment $ 11,005 $ 14,685 Natural gas in storage 2,299 2,364 $ 13,304 $ 17,049 Other assets Deferred compensation plan $ 12,587 $ 12,921 Debt issuance cost 11,403 14,871 Derivative instruments 2,991 — Other accounts 58 64 $ 27,039 $ 27,856 Accounts payable Trade accounts $ 27,355 $ 30,038 Natural gas purchases 2,231 2,231 Royalty and other owners 85,449 75,106 Accrued capital costs 34,647 27,479 Taxes other than income 13,827 14,628 Other accounts 4,902 10,925 $ 168,411 $ 160,407 Accrued liabilities Employee benefits $ 14,153 $ 13,870 Taxes other than income 3,829 5,073 Asset retirement obligations 2,000 2,000 Other accounts 1,510 3,980 $ 21,492 $ 24,923 Other liabilities Deferred compensation plan $ 24,169 $ 22,371 Other accounts 4,952 3,653 $ 29,121 $ 26,024 |
Supplemental Cash Flow Inform41
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of cash paid for interest and income taxes | Year Ended December 31, (In thousands) 2016 2015 2014 Cash paid for interest and income taxes Interest $ 86,723 $ 92,749 $ 58,487 Income taxes 688 7,550 77,029 Non-cash investing activities Change in accrued capital costs 7,168 (194,947 ) 72,603 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2016USD ($)CustomerInstitutionSegment | Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($)Customer | Jan. 01, 2017USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of operating segments | Segment | 1 | |||
Number of financial institutions | Institution | 2 | |||
Amortization of unproved properties included in depreciation, depletion, and amortization | $ 25,000,000 | $ 41,400,000 | $ 17,400,000 | |
Assets legally restricted for purposes of settling asset retirement obligations | 0 | |||
Properties and Equipment | ||||
Net cash provided by operating activities | 392,377,000 | 740,737,000 | 1,236,435,000 | |
Net cash provided by financing activities | $ (458,869,000) | $ (232,157,000) | $ (425,959,000) | |
Gathering and pipeline systems and equipment | Minimum | ||||
Properties and Equipment | ||||
Estimated useful life | 10 years | |||
Gathering and pipeline systems and equipment | Maximum | ||||
Properties and Equipment | ||||
Estimated useful life | 25 years | |||
Pipeline and transmission systems | Minimum | ||||
Properties and Equipment | ||||
Estimated useful life | 12 years | |||
Pipeline and transmission systems | Maximum | ||||
Properties and Equipment | ||||
Estimated useful life | 25 years | |||
Gathering and compression equipment | Maximum | ||||
Properties and Equipment | ||||
Estimated useful life | 10 years | |||
Storage equipment and facilities | Minimum | ||||
Properties and Equipment | ||||
Estimated useful life | 10 years | |||
Storage equipment and facilities | Maximum | ||||
Properties and Equipment | ||||
Estimated useful life | 16 years | |||
Buildings | Minimum | ||||
Properties and Equipment | ||||
Estimated useful life | 25 years | |||
Buildings | Maximum | ||||
Properties and Equipment | ||||
Estimated useful life | 40 years | |||
Other assets | Minimum | ||||
Properties and Equipment | ||||
Estimated useful life | 3 years | |||
Other assets | Maximum | ||||
Properties and Equipment | ||||
Estimated useful life | 10 years | |||
Sales Revenue, Net | Customer | ||||
Concentration Risk [Line Items] | ||||
Number of customers | Customer | 2 | 2 | 2 | |
Accounting Standards Update 2016-09 | ||||
Properties and Equipment | ||||
Net cash provided by operating activities | $ 5,100,000 | $ 8,900,000 | ||
Net cash provided by financing activities | $ 5,100,000 | $ 8,900,000 | ||
Subsequent Event | Accounting Standards Update 2016-09 | ||||
Properties and Equipment | ||||
Cumulative effect adjustment | $ 42,200,000 | |||
Customer one | Sales Revenue, Net | Customer | ||||
Concentration Risk [Line Items] | ||||
Percentage of total sales | 19.00% | 16.00% | 14.00% | |
Customer two | Sales Revenue, Net | Customer | ||||
Concentration Risk [Line Items] | ||||
Percentage of total sales | 10.00% | 14.00% | 10.00% |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Feb. 29, 2016 | Apr. 30, 2015 | Dec. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Acquisitions and Disposals | ||||||||
Acquisitions of oil and gas | $ 0 | $ 16,312 | $ 214,737 | |||||
Gain (loss) on sale of assets | (1,857) | 3,866 | 17,120 | |||||
Proceeds from sale of assets | $ 50,419 | $ 7,653 | $ 39,492 | |||||
Oil and gas properties, proved and unproved | Eagle Ford Shale in South Texas | ||||||||
Significant Acquisitions and Disposals | ||||||||
Acquisition cost of proved and unproved oil and gas properties | $ 30,500 | $ 210,000 | ||||||
Acquisitions of oil and gas | $ 16,000 | $ 29,900 | 185,200 | |||||
Adjustment to acquisition cost, consents for leaseholds | 17,400 | |||||||
Adjustment to acquisition cost, customary purchase price adjustment | 7,400 | |||||||
Acquisition, assumed liability related to asset retirement obligations | 1,200 | |||||||
Oil and gas properties, proved and unproved | East Texas | ||||||||
Significant Acquisitions and Disposals | ||||||||
Gain (loss) on sale of assets | $ 500 | 19,900 | ||||||
Proceeds from sale of assets | $ 56,400 | $ 44,300 | $ 6,300 | |||||
Oil and gas properties | Significant Unobservable Inputs (Level 3) | ||||||||
Significant Acquisitions and Disposals | ||||||||
Capital rate | 10.00% | 10.00% |
Properties and Equipment, Net -
Properties and Equipment, Net - Components of net property and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Proved oil and gas properties | $ 7,437,604 | $ 8,821,146 |
Unproved oil and gas properties | 260,543 | 390,434 |
Gathering and pipeline systems | 187,846 | 243,672 |
Land, building and other equipment | 84,462 | 117,848 |
Properties and equipment, gross, total | 7,970,455 | 9,573,100 |
Accumulated depreciation, depletion and amortization | (3,720,330) | (4,596,221) |
Properties and equipment, net | $ 4,250,125 | $ 4,976,879 |
Properties and Equipment, Net45
Properties and Equipment, Net - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Properties and Equipment | ||||||
Impairment of oil and gas properties and other assets | $ 435,619,000 | $ 114,875,000 | $ 771,037,000 | |||
Capitalized exploratory well costs that have been capitalized for a period of one year or less | $ 0 | $ 0 | $ 10,600,000 | $ 0 | $ 0 | $ 10,600,000 |
Oil and gas properties | Significant Unobservable Inputs (Level 3) | ||||||
Properties and Equipment | ||||||
Capital rate | 10.00% | 10.00% | ||||
West Virginia and Virginia | ||||||
Properties and Equipment | ||||||
Impairment of oil and gas properties and other assets | 435,600,000 | |||||
West Virginia and Virginia | Oil and gas properties, proved and unproved | ||||||
Properties and Equipment | ||||||
Sale of oil and gas properties before closing adjustments | $ 89,200,000 | |||||
South Texas, East Texas and Louisiana | ||||||
Properties and Equipment | ||||||
Impairment of oil and gas properties and other assets | 114,900,000 | |||||
South Texas, East Texas and Louisiana | Oil and gas properties, proved and unproved | ||||||
Properties and Equipment | ||||||
Sale of oil and gas properties before closing adjustments | $ 89,900,000 | |||||
East And South Texas | ||||||
Properties and Equipment | ||||||
Impairment of oil and gas properties and other assets | $ 771,000,000 | |||||
East And South Texas | Oil and gas properties, proved and unproved | ||||||
Properties and Equipment | ||||||
Sale of oil and gas properties before closing adjustments | $ 86,500,000 |
Properties and Equipment, Net46
Properties and Equipment, Net - Schedule of net changes in capitalized exploratory well costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net changes in capitalized exploratory well costs | |||
Balance at beginning of period | $ 0 | $ 10,557 | $ 0 |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 0 | 10,557 | |
Reclassifications to wells, facilities, and equipment based on the determination of proved reserves | 0 | (10,557) | 0 |
Capitalized exploratory well costs charged to expense | 0 | 0 | 0 |
Balance at end of period | $ 0 | $ 0 | $ 10,557 |
Equity Method Investments - Act
Equity Method Investments - Activity Related to Equity Method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments | |||
Balance at beginning of period | $ 103,517 | $ 68,029 | $ 26,892 |
Contributions | 28,484 | 29,073 | 38,057 |
Earnings (loss) on equity method investments | (2,477) | 6,415 | 3,080 |
Balance at end of period | 129,524 | 103,517 | 68,029 |
Constitution Pipeline Company, LLC | |||
Equity Method Investments | |||
Balance at beginning of period | 90,345 | 64,268 | 26,892 |
Contributions | 8,975 | 19,625 | 34,200 |
Earnings (loss) on equity method investments | (2,470) | 6,452 | 3,176 |
Balance at end of period | 96,850 | 90,345 | 64,268 |
Meade Pipeline Co LLC | |||
Equity Method Investments | |||
Balance at beginning of period | 13,172 | 3,761 | 0 |
Contributions | 19,509 | 9,448 | 3,857 |
Earnings (loss) on equity method investments | (7) | (37) | (96) |
Balance at end of period | $ 32,674 | $ 13,172 | $ 3,761 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2014mi | Apr. 30, 2012USD ($)mi | Dec. 31, 2016USD ($)investment | |
Schedule of Equity Method Investments [Line Items] | |||
Number of investments | investment | 2 | ||
Transcontinental Gas Pipe Line Company LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Entity's equity interest in construction agreement (as a percent) | 61.00% | ||
Constitution Pipeline Company, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest (as a percent) | 25.00% | ||
Length of pipeline to be constructed (in miles) | mi | 124 | ||
Contribution cap | $ 250,000,000 | ||
Meade Pipeline Co LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest (as a percent) | 20.00% | ||
Length of pipeline to be constructed (in miles) | mi | 177 | ||
Expected contribution in future years | $ 120,300,000 | ||
Number of year's investment expected for contribution | 3 years | ||
Entity's equity interest in construction agreement (as a percent) | 39.00% | ||
Equity Method Investment Commitment [Member] | Constitution Pipeline Company, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Expected contribution in future years | $ 148,900,000 | ||
Number of year's investment expected for contribution | 3 years | ||
Anticipated contributions | $ 240,000,000 | ||
Contributions to date | $ 88,500,000 |
Debt and Credit Agreements - Sc
Debt and Credit Agreements - Schedule of debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt including unamortized debt issuance costs | $ 1,528,000 | $ 2,025,000 |
Unamortized debt issuance costs | (7,470) | (8,861) |
Long-term debt | 1,520,530 | 2,016,139 |
Current maturities | $ 0 | $ (20,000) |
7.33% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Weighted-average interest rate (as a percent) | 7.33% | 7.33% |
Long-term debt including unamortized debt issuance costs | $ 0 | $ 20,000 |
6.51% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Weighted-average interest rate (as a percent) | 6.51% | 6.51% |
Long-term debt including unamortized debt issuance costs | $ 361,000 | $ 425,000 |
9.78% senior notes | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 9.78% | 9.78% |
Long-term debt including unamortized debt issuance costs | $ 67,000 | $ 67,000 |
5.58% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Weighted-average interest rate (as a percent) | 5.58% | 5.58% |
Long-term debt including unamortized debt issuance costs | $ 175,000 | $ 175,000 |
3.65% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Weighted-average interest rate (as a percent) | 3.65% | 3.65% |
Long-term debt including unamortized debt issuance costs | $ 925,000 | $ 925,000 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt including unamortized debt issuance costs | $ 0 | $ 413,000 |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) | Dec. 31, 2015USD ($)fiscal_period | Apr. 17, 2015USD ($) | May 31, 2016USD ($) | Sep. 30, 2014USD ($)InvestorTranche | Dec. 31, 2010USD ($)InvestorTranche | Dec. 31, 2008USD ($)Investor | Jul. 31, 2008USD ($)InvestorTranche | Jul. 31, 2001USD ($)InvestorTranche | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)fiscal_period | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Apr. 19, 2016USD ($) | Apr. 18, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
2,018 | $ 304,000,000 | |||||||||||||
2,020 | 87,000,000 | |||||||||||||
2,021 | 188,000,000 | |||||||||||||
Repayments of debt | 587,000,000 | $ 604,000,000 | $ 1,427,000,000 | |||||||||||
Loss on repurchase of debt | 4,709,000 | 0 | $ 0 | |||||||||||
Deferred financing costs capitalized | $ 8,861,000 | 7,470,000 | 8,861,000 | |||||||||||
Long-term debt including unamortized debt issuance costs | $ 2,025,000,000 | $ 1,528,000,000 | $ 2,025,000,000 | |||||||||||
7.33% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Weighted-average interest rate (as a percent) | 7.33% | 7.33% | 7.33% | |||||||||||
Long-term debt including unamortized debt issuance costs | $ 20,000,000 | $ 0 | $ 20,000,000 | |||||||||||
6.51% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Weighted-average interest rate (as a percent) | 6.51% | 6.51% | 6.51% | |||||||||||
Long-term debt including unamortized debt issuance costs | $ 425,000,000 | $ 361,000,000 | $ 425,000,000 | |||||||||||
9.78% senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate (as a percent) | 9.78% | 9.78% | 9.78% | |||||||||||
Long-term debt including unamortized debt issuance costs | $ 67,000,000 | $ 67,000,000 | $ 67,000,000 | |||||||||||
5.58% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Weighted-average interest rate (as a percent) | 5.58% | 5.58% | 5.58% | |||||||||||
Long-term debt including unamortized debt issuance costs | $ 175,000,000 | $ 175,000,000 | $ 175,000,000 | |||||||||||
3.65% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Weighted-average interest rate (as a percent) | 3.65% | 3.65% | 3.65% | |||||||||||
Long-term debt including unamortized debt issuance costs | $ 925,000,000 | $ 925,000,000 | $ 925,000,000 | |||||||||||
Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Remaining borrowing capacity on line of credit | $ 1,700,000,000 | |||||||||||||
Minimum required asset coverage ratio | 1.75 | |||||||||||||
Fiscal quarters for reduction in coverage ratio | fiscal_period | 4 | |||||||||||||
Minimum required annual coverage ratio | 2.8 | |||||||||||||
Maximum borrowing capacity on line of credit | $ 3,200,000,000 | $ 3,400,000,000 | ||||||||||||
Available line of credit | $ 1,800,000,000 | |||||||||||||
Minimum current ratio | 1 | |||||||||||||
Debt issuance costs | 1,100,000 | $ 7,800,000 | 1,100,000 | |||||||||||
Long-term debt including unamortized debt issuance costs | $ 413,000,000 | $ 0 | $ 413,000,000 | |||||||||||
Interest rate during period | 2.30% | 2.20% | 2.20% | |||||||||||
Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Minimum required asset coverage ratio | 1.75 | |||||||||||||
Fiscal quarters for reduction in coverage ratio | fiscal_period | 4 | |||||||||||||
Minimum required annual coverage ratio | 2.8 | |||||||||||||
Deferred financing costs capitalized | $ 1,900,000 | |||||||||||||
Senior Notes | 7.33% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Weighted-average interest rate (as a percent) | 7.33% | |||||||||||||
Principal | $ 170,000,000 | |||||||||||||
Number of institutional investors | Investor | 7 | |||||||||||||
Number of debt tranches | Tranche | 3 | |||||||||||||
Principal repaid | $ 170,000,000 | |||||||||||||
Senior Notes | 6.51% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 425,000,000 | |||||||||||||
Number of institutional investors | Investor | 41 | |||||||||||||
Number of debt tranches | Tranche | 3 | |||||||||||||
Senior Notes | 9.78% senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 67,000,000 | |||||||||||||
Number of institutional investors | Investor | 4 | |||||||||||||
Term | 10 years | |||||||||||||
Interest rate (as a percent) | 9.78% | |||||||||||||
Senior Notes | 5.58% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 175,000,000 | |||||||||||||
Number of institutional investors | Investor | 8 | |||||||||||||
Number of debt tranches | Tranche | 3 | |||||||||||||
Senior Notes | 3.65% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Weighted-average interest rate (as a percent) | 3.65% | |||||||||||||
Deferred financing costs capitalized | $ 5,600,000 | |||||||||||||
Principal | $ 925,000,000 | |||||||||||||
Number of institutional investors | Investor | 24 | |||||||||||||
Number of debt tranches | Tranche | 3 | |||||||||||||
Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Remaining borrowing capacity on line of credit | $ 1,600,000,000 | |||||||||||||
Minimum required asset coverage ratio | 1.75 | |||||||||||||
Minimum | Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Unused capacity fee percentage | 0.30% | |||||||||||||
Maximum | Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Unused capacity fee percentage | 0.50% | |||||||||||||
December 31, 2016 | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum leverage coverage ratio | 4.75 | |||||||||||||
December 31, 2016 | Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum leverage coverage ratio | 4.75 | |||||||||||||
December 31, 2017 | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Minimum required asset coverage ratio | 1.25 | |||||||||||||
Maximum leverage coverage ratio | 4.25 | |||||||||||||
December 31, 2017 | Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Minimum required asset coverage ratio | 1.25 | |||||||||||||
Maximum leverage coverage ratio | 4.25 | |||||||||||||
March 31, 2018 | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Minimum required asset coverage ratio | 1.75 | |||||||||||||
Maximum leverage coverage ratio | 3.50 | |||||||||||||
March 31, 2018 | Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Minimum required asset coverage ratio | 1.75 | |||||||||||||
Maximum leverage coverage ratio | 3.50 | |||||||||||||
Maintain coverage ratio for 2 consecutive quarters or receive investment grade rating from Standard and Poors or Moody's | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum leverage coverage ratio | 3 | |||||||||||||
Fiscal quarters for reduction in coverage ratio | fiscal_period | 2 | |||||||||||||
Maintain coverage ratio for 2 consecutive quarters or receive investment grade rating from Standard and Poors or Moody's | Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum leverage coverage ratio | 3 | 3 | ||||||||||||
Fiscal quarters for reduction in coverage ratio | fiscal_period | 2 | 2 | ||||||||||||
Increase in rate based upon coverage and leverage ratio | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 0.00% | |||||||||||||
Increase in rate based upon coverage and leverage ratio | Minimum | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 0.00% | |||||||||||||
Increase in rate based upon coverage and leverage ratio | Maximum | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 1.25% | |||||||||||||
Senior Notes | 6.51% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Amount of principal repurchased | $ 64,000,000 | |||||||||||||
Repayments of debt | 68,300,000 | |||||||||||||
Loss on repurchase of debt | $ 4,700,000 | |||||||||||||
Tranche 1 | Senior Notes | 6.51% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 245,000,000 | |||||||||||||
Term | 10 years | |||||||||||||
Interest rate (as a percent) | 6.44% | |||||||||||||
Tranche 1 | Senior Notes | 5.58% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 88,000,000 | |||||||||||||
Term | 10 years | |||||||||||||
Interest rate (as a percent) | 5.42% | |||||||||||||
Tranche 1 | Senior Notes | 3.65% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 100,000,000 | |||||||||||||
Term | 7 years | |||||||||||||
Interest rate (as a percent) | 3.24% | |||||||||||||
Tranche 1 | Senior Notes | 6.51% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Amount of principal repurchased | 8,000,000 | |||||||||||||
Tranche 2 | Senior Notes | 6.51% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 100,000,000 | |||||||||||||
Term | 12 years | |||||||||||||
Interest rate (as a percent) | 6.54% | |||||||||||||
Tranche 2 | Senior Notes | 5.58% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 25,000,000 | |||||||||||||
Term | 12 years | |||||||||||||
Interest rate (as a percent) | 5.59% | |||||||||||||
Tranche 2 | Senior Notes | 3.65% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 575,000,000 | |||||||||||||
Term | 10 years | |||||||||||||
Interest rate (as a percent) | 3.67% | |||||||||||||
Tranche 2 | Senior Notes | 6.51% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Amount of principal repurchased | 13,000,000 | |||||||||||||
Tranche 3 | Senior Notes | 6.51% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 80,000,000 | |||||||||||||
Term | 15 years | |||||||||||||
Interest rate (as a percent) | 6.69% | |||||||||||||
Tranche 3 | Senior Notes | 5.58% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 62,000,000 | |||||||||||||
Term | 15 years | |||||||||||||
Interest rate (as a percent) | 5.80% | |||||||||||||
Tranche 3 | Senior Notes | 3.65% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 250,000,000 | |||||||||||||
Term | 12 years | |||||||||||||
Interest rate (as a percent) | 3.77% | |||||||||||||
Tranche 3 | Senior Notes | 6.51% weighted-average senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Amount of principal repurchased | $ 43,000,000 | |||||||||||||
LIBOR | Minimum | Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 0.50% | |||||||||||||
LIBOR | Maximum | Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 3.00% | |||||||||||||
LIBOR | Maintain coverage ratio for 2 consecutive quarters or receive investment grade rating from Standard and Poors or Moody's | Minimum | Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 0.50% | |||||||||||||
LIBOR | Maintain coverage ratio for 2 consecutive quarters or receive investment grade rating from Standard and Poors or Moody's | Maximum | Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 2.25% |
Debt and Credit Agreements - 51
Debt and Credit Agreements - Schedule of Notes Issued (Details) - Senior Notes - USD ($) | 1 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2010 | Jul. 31, 2008 | |
6.51% weighted-average senior notes | |||
Debt Instrument [Line Items] | |||
Principal | $ 425,000,000 | ||
6.51% weighted-average senior notes | Tranche 1 | |||
Debt Instrument [Line Items] | |||
Principal | $ 245,000,000 | ||
Term | 10 years | ||
Coupon (as a percent) | 6.44% | ||
6.51% weighted-average senior notes | Tranche 2 | |||
Debt Instrument [Line Items] | |||
Principal | $ 100,000,000 | ||
Term | 12 years | ||
Coupon (as a percent) | 6.54% | ||
6.51% weighted-average senior notes | Tranche 3 | |||
Debt Instrument [Line Items] | |||
Principal | $ 80,000,000 | ||
Term | 15 years | ||
Coupon (as a percent) | 6.69% | ||
5.58% weighted-average senior notes | |||
Debt Instrument [Line Items] | |||
Principal | $ 175,000,000 | ||
5.58% weighted-average senior notes | Tranche 1 | |||
Debt Instrument [Line Items] | |||
Principal | $ 88,000,000 | ||
Term | 10 years | ||
Coupon (as a percent) | 5.42% | ||
5.58% weighted-average senior notes | Tranche 2 | |||
Debt Instrument [Line Items] | |||
Principal | $ 25,000,000 | ||
Term | 12 years | ||
Coupon (as a percent) | 5.59% | ||
5.58% weighted-average senior notes | Tranche 3 | |||
Debt Instrument [Line Items] | |||
Principal | $ 62,000,000 | ||
Term | 15 years | ||
Coupon (as a percent) | 5.80% | ||
3.65% weighted-average senior notes | |||
Debt Instrument [Line Items] | |||
Principal | $ 925,000,000 | ||
3.65% weighted-average senior notes | Tranche 1 | |||
Debt Instrument [Line Items] | |||
Principal | $ 100,000,000 | ||
Term | 7 years | ||
Coupon (as a percent) | 3.24% | ||
3.65% weighted-average senior notes | Tranche 2 | |||
Debt Instrument [Line Items] | |||
Principal | $ 575,000,000 | ||
Term | 10 years | ||
Coupon (as a percent) | 3.67% | ||
3.65% weighted-average senior notes | Tranche 3 | |||
Debt Instrument [Line Items] | |||
Principal | $ 250,000,000 | ||
Term | 12 years | ||
Coupon (as a percent) | 3.77% |
Derivative Instruments and He52
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Apr. 01, 2014 | |
Derivative [Line Items] | ||
Unrealized losses included in accumulated other comprehensive income, reclassified into natural gas and crude oil revenues , pre-tax | $ 73,400,000 | |
Unrealized losses included in accumulated other comprehensive income, reclassified into natural gas and crude oil revenues , net of tax | $ 0 | $ 44,200,000 |
Gain (loss) on cash flow hedge ineffectiveness | $ 0 |
Derivative Instruments and He53
Derivative Instruments and Hedging Activities - Outstanding Commodity Derivatives (Details) bbl in Millions, Mcf in Millions | 12 Months Ended |
Dec. 31, 2016$ / bbl$ / McfMcfbbl | |
Natural Gas Swap With Contract Period of January 2017 to December 2017 | |
Derivative [Line Items] | |
Volume (in mmcf for gas and mbbls for oil) | Mcf | 35.5 |
Swaps Weighted Average (in usd per Mcf or usd per bbl) | 3.12 |
Natural Gas Swap With Contract Period of February 2017 to December 2017 | |
Derivative [Line Items] | |
Volume (in mmcf for gas and mbbls for oil) | Mcf | 16.2 |
Swaps Weighted Average (in usd per Mcf or usd per bbl) | 3.46 |
Natural Gas Collar With Contract Period of January 2017 to December 2017 | |
Derivative [Line Items] | |
Volume (in mmcf for gas and mbbls for oil) | Mcf | 35.5 |
Natural Gas Collar With Contract Period of January 2017 to December 2017 | Minimum | |
Derivative [Line Items] | |
Collar Ceiling Price (in usd per Mcf or usd per bbl) | 3.42 |
Natural Gas Collar With Contract Period of January 2017 to December 2017 | Maximum | |
Derivative [Line Items] | |
Collar Ceiling Price (in usd per Mcf or usd per bbl) | 3.45 |
Natural Gas Collar With Contract Period of January 2017 to December 2017 | Weighted Average | |
Derivative [Line Items] | |
Collar Floor Price (in usd per Mcf or usd per bbl) | 3.09 |
Collar Ceiling Price (in usd per Mcf or usd per bbl) | 3.43 |
Natural Gas Basis Swap With Contract Period of January 2018 to December 2019 | |
Derivative [Line Items] | |
Volume (in mmcf for gas and mbbls for oil) | Mcf | 21.3 |
Swaps Weighted Average (in usd per Mcf or usd per bbl) | 0.42 |
Crude Oil Collar With Contract Period Of January 2017 to December 2017 | |
Derivative [Line Items] | |
Volume (in mmcf for gas and mbbls for oil) | bbl | 1.8 |
Crude Oil Collar With Contract Period Of January 2017 to December 2017 | Minimum | |
Derivative [Line Items] | |
Collar Ceiling Price (in usd per Mcf or usd per bbl) | $ / bbl | 56.25 |
Crude Oil Collar With Contract Period Of January 2017 to December 2017 | Maximum | |
Derivative [Line Items] | |
Collar Ceiling Price (in usd per Mcf or usd per bbl) | $ / bbl | 56.50 |
Crude Oil Collar With Contract Period Of January 2017 to December 2017 | Weighted Average | |
Derivative [Line Items] | |
Collar Floor Price (in usd per Mcf or usd per bbl) | $ / bbl | 50 |
Collar Ceiling Price (in usd per Mcf or usd per bbl) | $ / bbl | 56.39 |
Derivative Instruments and He54
Derivative Instruments and Hedging Activities - Effect of Derivatives on Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | $ 2,991 | $ 0 |
Derivative Liabilities | 40,259 | 0 |
Derivatives Not Designated as Hedges | Commodity contracts | Other assets (non-current) | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | 2,991 | 0 |
Derivative Liabilities | 0 | 0 |
Derivatives Not Designated as Hedges | Commodity contracts | Derivative instruments (current) | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 40,259 | $ 0 |
Derivative Instruments and He55
Derivative Instruments and Hedging Activities - Offsetting Assets and Liabilities in the Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative assets | ||
Gross amounts of recognized assets | $ 2,991 | $ 0 |
Gross amounts offset in the statement of financial position | 0 | 0 |
Net amounts of assets presented in the statement of financial position | 2,991 | 0 |
Gross amounts of financial instruments not offset in the statement of financial position | 0 | 0 |
Net amount | 2,991 | 0 |
Derivative liabilities | ||
Gross amounts of recognized liabilities | 40,259 | 0 |
Gross amounts offset in the statement of financial position | 0 | 0 |
Net amounts of liabilities presented in the statement of financial position | 40,259 | 0 |
Gross amounts of financial instruments not offset in the statement of financial position | 757 | 0 |
Net amount | $ 41,016 | $ 0 |
Derivative Instruments and He56
Derivative Instruments and Hedging Activities - Effect of Derivative on AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commodity contracts | Derivatives Designated as Hedges | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | $ 0 | $ 0 | $ (133,310) |
Derivative Instruments and He57
Derivative Instruments and Hedging Activities - Derivative Gain (Loss) Reclassified from AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 01, 2014 | |
Effect of derivative instruments on the Consolidated Statement of Operations | ||||
Gain (loss) related to amounts previously frozen in accumulated OCI, reclassified into income | $ (73,400) | |||
Derivatives Designated as Hedges | ||||
Effect of derivative instruments on the Consolidated Statement of Operations | ||||
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion) | $ 0 | $ 0 | $ (144,203) | |
Derivatives Designated as Hedges | Natural gas | ||||
Effect of derivative instruments on the Consolidated Statement of Operations | ||||
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion) | 0 | 0 | (143,577) | |
Derivatives Designated as Hedges | Crude oil and condensate | ||||
Effect of derivative instruments on the Consolidated Statement of Operations | ||||
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion) | $ 0 | $ 0 | $ (626) |
Derivative Instruments and He58
Derivative Instruments and Hedging Activities - Effect of Derivative on Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Unrealized gain (loss) on derivative instruments | $ (38,950) | $ 56,686 | $ 219,319 |
Gain (loss) in derivative instruments not designated as hedges | (38,950) | 56,686 | 145,891 |
Gain (loss) on derivative, net | (38,950) | 56,686 | 75,116 |
Derivatives Designated as Hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gain (loss) on derivative instruments | 0 | 0 | (70,775) |
Derivatives Not Designated as Hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Unrealized gain (loss) on derivative instruments | (37,268) | (137,603) | 137,603 |
Natural gas | Derivatives Designated as Hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gain (loss) on derivative instruments | 0 | 0 | (70,557) |
Natural gas | Derivatives Not Designated as Hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gain (loss) on derivative instruments | 0 | 0 | (73,020) |
Crude oil and condensate | Derivatives Designated as Hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gain (loss) on derivative instruments | 0 | 0 | (218) |
Crude oil and condensate | Derivatives Not Designated as Hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gain (loss) on derivative instruments | 0 | 0 | (408) |
Gain (loss) on derivative instruments | Derivatives Not Designated as Hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gain (loss) on derivative instruments | $ (1,682) | $ 194,289 | $ 81,716 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Deferred compensation plan | $ 12,587 | $ 12,921 |
Derivative instruments | 2,991 | 0 |
Total assets | 15,578 | 12,921 |
Liabilities | ||
Deferred compensation plan | 24,169 | 22,371 |
Derivative instruments | 40,259 | 0 |
Total liabilities | 64,428 | 22,371 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Deferred compensation plan | 12,587 | 12,921 |
Derivative instruments | 0 | |
Total assets | 12,587 | 12,921 |
Liabilities | ||
Deferred compensation plan | 24,169 | 22,371 |
Derivative instruments | 0 | |
Total liabilities | 24,169 | 22,371 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 0 | |
Total assets | 0 | 0 |
Liabilities | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 21,400 | |
Total liabilities | 21,400 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 2,991 | |
Total assets | 2,991 | 0 |
Liabilities | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 18,859 | |
Total liabilities | $ 18,859 | $ 0 |
Fair Value Measurements - Ass60
Fair Value Measurements - Assets and Liabilities Classified as Level 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 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 | $ 0 | $ 85,958 | $ (3,910) |
Total gains (losses) (realized or unrealized): | |||
Included in earnings | (17,886) | 32,864 | 35,067 |
Included in other comprehensive income | 0 | 0 | 3,755 |
Settlements | 2,018 | (118,822) | 51,046 |
Transfers in and/or out of level 3 | 0 | 0 | 0 |
Balance at end of period | (15,868) | 0 | 85,958 |
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period | $ (15,868) | $ 0 | $ 85,958 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair value disclosures | ||
Long-term debt | $ 1,520,530 | $ 2,016,139 |
Current maturities | 0 | (20,000) |
Long-term debt, net | 1,520,530 | 1,996,139 |
Carrying Amount | ||
Fair value disclosures | ||
Long-term debt | 1,520,530 | 2,016,139 |
Current maturities | 0 | (20,000) |
Long-term debt, net | 1,520,530 | 1,996,139 |
Estimated Fair Value | ||
Fair value disclosures | ||
Long-term debt | 1,463,643 | 1,839,530 |
Current maturities | 0 | (20,378) |
Long-term debt, net | $ 1,463,643 | $ 1,819,152 |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Impaired_Asset_And_Liabilty | Dec. 31, 2015USD ($)Impaired_Asset_And_Liabilty | Dec. 31, 2014USD ($)Impaired_Asset_And_Liabilty | |
Fair Value Disclosures [Abstract] | |||
Fair value assets Level 1 to Level 2 transfers amount | $ 0 | $ 0 | $ 0 |
Fair value liabilities Level 1 to Level 2 transfers amount | 0 | 0 | 0 |
Fair value assets Level 2 to Level 1 transfers amount | 0 | 0 | 0 |
Fair value liabilities Level 2 to Level 1 transfers amount | $ 0 | $ 0 | $ 0 |
Number of non-financial assets and liabilities impaired | Impaired_Asset_And_Liabilty | 0 | 0 | 0 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Asset Retirement Obligations (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Asset Retirement Obligation | |
Balance at beginning of period | $ 145,606 |
Liabilities incurred | 3,522 |
Liabilities settled | (1,148) |
Liabilities divested | (24,338) |
Accretion expense | 8,065 |
Change in estimate | 2,026 |
Balance at end of period | $ 133,733 |
Asset Retirement Obligations 64
Asset Retirement Obligations - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation, current | $ 2 | $ 2 |
Commitments and Contingencies -
Commitments and Contingencies - Future Transportation and Gathering Commitments (Details) - Transportation Agreement Obligation $ in Thousands | Dec. 31, 2016USD ($) |
Other Commitments [Line Items] | |
2,017 | $ 148,061 |
2,018 | 167,749 |
2,019 | 155,904 |
2,020 | 150,522 |
2,021 | 150,110 |
Thereafter | 1,071,827 |
Future transportation agreement obligation | $ 1,844,173 |
Commitments and Contingencies66
Commitments and Contingencies - Future Lease Commitment (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 7,244 |
2,018 | 6,727 |
2,019 | 6,363 |
2,020 | 5,889 |
2,021 | 4,783 |
Thereafter | 6,203 |
Future lease payments due | $ 37,209 |
Commitments and Contingencies67
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)Drilling_Rig | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Commitments and Contingencies | |||
Rent expense | $ 10.7 | $ 13.9 | $ 10.8 |
Drilling Rig Commitments | |||
Commitments and Contingencies | |||
Number of drilling rig commitments | Drilling_Rig | 1 | ||
Future minimum commitment for 2017 | $ 4.2 | ||
Hydraulic Fracturing Services Agreement [Member] | |||
Commitments and Contingencies | |||
Future minimum commitment for 2017 | $ 4 | ||
Term of agreement | 15 months | ||
Maximum | Drilling Rig Commitments | |||
Commitments and Contingencies | |||
Drilling rig commitment term | 3 years |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||
Federal | $ (9,920) | $ 983 | $ 44,887 |
State | (1,848) | (1,397) | (4,387) |
Total | (11,768) | (414) | 40,500 |
Deferred | |||
Federal | (218,357) | (72,869) | (32,375) |
State | (12,350) | (99) | (80,192) |
Total | (230,707) | (72,968) | (112,567) |
Income tax (benefit) expense | $ (242,475) | $ (73,382) | $ (72,067) |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amount | |||
Computed expected federal income tax | $ (230,860) | $ (65,546) | $ 11,341 |
State income tax, net of federal income tax benefit | (10,888) | (3,152) | 903 |
Deferred tax adjustment related to change in overall state tax rate | (663) | 2,822 | (86,956) |
Valuation allowance | 221 | 187 | 3,977 |
Uncertain tax positions | 0 | 0 | (1,974) |
Provision to return adjustments | (121) | (6,326) | (791) |
Other, net | (164) | (1,367) | 1,433 |
Income tax (benefit) expense | $ (242,475) | $ (73,382) | $ (72,067) |
Rate | |||
Statutory federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income tax, net of federal income tax benefit (as a percent) | 1.65% | 1.68% | 2.79% |
Deferred tax adjustment related to change in overall state tax rate (as a percent) | 0.10% | (1.51%) | (268.36%) |
Valuation allowance (as a percent) | (0.03%) | (0.10%) | 12.27% |
Uncertain tax positions (as a percent) | 0.00% | 0.00% | (6.09%) |
Provision to return adjustments (as a percent) | 0.02% | 3.38% | (2.44%) |
Other, net (as a percent) | 0.02% | 0.73% | 4.42% |
Income tax benefit (as a percent) | 36.76% | 39.18% | (222.41%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Asset and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets | ||
Net operating losses | $ 352,001 | $ 223,402 |
Alternative minimum tax credits | 218,773 | 228,693 |
Foreign tax credits | 3,816 | 3,837 |
Derivative instruments | 13,771 | 0 |
Incentive compensation | 22,852 | 22,509 |
Deferred compensation | 8,217 | 7,869 |
Post-retirement benefits | 13,865 | 13,556 |
Other | 2,743 | 2,905 |
Less: valuation allowance | (5,186) | (4,965) |
Total | 630,852 | 497,806 |
Deferred Tax Liabilities | ||
Properties and equipment | 1,207,545 | 1,303,840 |
Equity method investments | 2,754 | 1,202 |
Total | 1,210,299 | 1,305,042 |
Net deferred tax liabilities | $ 579,447 | $ 807,236 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
State tax effected net operating losses | ||||
Deferred tax adjustment related to change in overall state tax rate | $ (663) | $ 2,822 | $ (86,956) | |
Alternative minimum tax credits | 218,773 | 228,693 | ||
Tax benefits related to employee stock-based compensation not reflected in deferred tax assets | 120,300 | |||
Additions based on tax provisions related to the current year | 0 | 0 | 0 | |
Reductions for tax positions of prior years | 0 | 0 | 3,037 | |
Unrecognized tax benefits | 663 | $ 663 | $ 663 | $ 3,700 |
Federal | ||||
State tax effected net operating losses | ||||
Net operating loss carryforwards | 1,000,000 | |||
State Tax Reporting | ||||
State tax effected net operating losses | ||||
Net operating loss carryforwards | 636,100 | |||
Valuation allowance on operating loss carryforwards | $ 4,800 |
Income Taxes - Rollforward of U
Income Taxes - Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of unrecognized tax benefits | |||
Balance at beginning of year | $ 663 | $ 663 | $ 3,700 |
Additions based on tax provisions related to the current year | 0 | 0 | 0 |
Additions for tax positions of prior years | 0 | 0 | 0 |
Reductions for tax positions of prior years | 0 | 0 | (3,037) |
Settlements | 0 | 0 | 0 |
Balance at end of year | $ 663 | $ 663 | $ 663 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Benefit Obligation and Fair Value (Details) - Postretirement Benefits Other than Pensions - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in Benefit Obligation | |||
Benefit obligation at beginning of year | $ 36,626 | $ 37,076 | $ 34,995 |
Service cost | 2,323 | 1,808 | 1,295 |
Interest cost | 1,498 | 1,448 | 1,343 |
Actuarial (gain) loss | (2,846) | (2,829) | 373 |
Benefits paid | (934) | (877) | (930) |
Plan amendments | 815 | 0 | 0 |
Benefit obligation at end of year | 37,482 | 36,626 | 37,076 |
Change in Plan Assets | |||
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status at end of year | $ (37,482) | $ (36,626) | $ (37,076) |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in the Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Amounts Recognized in the Balance Sheet | |||
Long-term liabilities | $ 36,259 | $ 35,293 | |
Postretirement Benefits Other than Pensions | |||
Amounts Recognized in the Balance Sheet | |||
Current liabilities | 1,223 | 1,333 | $ 1,249 |
Long-term liabilities | 36,259 | 35,293 | 35,827 |
Amounts recognized in the balance sheet | $ 37,482 | $ 36,626 | $ 37,076 |
Employee Benefit Plans - Amou75
Employee Benefit Plans - Amount Recognized in Other Comprehensive Income (Details) - Postretirement Benefits Other than Pensions - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Amounts Recognized in Accumulated Other Comprehensive Income | |||
Net actuarial (gain) loss | $ (2,266) | $ 580 | $ 3,408 |
Prior service cost | 704 | 0 | 0 |
Amount recognized to accumulated other comprehensive income, net actuarial loss | $ (1,562) | $ 580 | $ 3,408 |
Employee Benefit Plans - Chan76
Employee Benefit Plans - Changes in Net Periodic Benefit Cost (Details) - Postretirement Benefits Other than Pensions - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Net Periodic Postretirement Benefit Cost | |||
Service cost | $ 2,323 | $ 1,808 | $ 1,295 |
Interest cost | 1,498 | 1,448 | 1,343 |
Amortization of prior service cost | 111 | 0 | 0 |
Amortization of net loss | 0 | 0 | (26) |
Net periodic postretirement cost | 3,932 | 3,256 | 2,612 |
Other Changes in Benefit Obligations Recognized in Other Comprehensive Income (Loss) | |||
Net (gain) loss | (2,846) | (2,829) | 373 |
Prior service cost | 815 | 0 | 0 |
Amortization of prior service cost | (111) | 0 | 0 |
Amortization of net loss | 0 | 0 | 26 |
Total recognized in other comprehensive income | (2,142) | (2,829) | 399 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 1,790 | $ 427 | $ 3,011 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions in Benefit Plans (Details) - Postretirement Benefits Other than Pensions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted-average assumptions used to determine projected pension benefit obligations | |||
Discount rate (as a percent) | 4.30% | 4.25% | 4.00% |
Discount rate beginning of year (as a percent) | 4.25% | 4.00% | 4.75% |
Pre 65 | |||
Weighted-average assumptions used to determine projected pension benefit obligations | |||
Health care cost trend rate for medical benefits assumed for next year (as a percent) | 7.50% | 5.50% | 6.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (as a percent) | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate (pre-65) | 2,023 | 2,018 | 2,018 |
Post 65 | |||
Weighted-average assumptions used to determine projected pension benefit obligations | |||
Health care cost trend rate for medical benefits assumed for next year (as a percent) | 5.00% | 5.50% | 6.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (as a percent) | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate (pre-65) | 2,018 | 2,018 | 2,018 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Retireeshares | Dec. 31, 2015USD ($)Retireeshares | Dec. 31, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Liabilities, including the Company's common stock | $ 24,169,000 | $ 22,371,000 | |
Defined contribution cost recognized | $ 1,800,000 | $ (6,400,000) | $ (4,900,000) |
Postretirement Benefits Other than Pensions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of retirees and dependents | Retiree | 310 | 276 | |
Subsidy limit percentage of expected annual fully insured premium over age threshold | 60.00% | ||
Subsidy limit percentage of expected annual fully insured premium under age threshold | $ 648,000 | ||
Annual subsidy limit percentage increases for fully insured premium over age threshold | 3.50% | ||
Estimated contributions in 2016 | $ 1,200,000 | ||
Savings Investment Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching percent | 6.00% | ||
Maximum contribution, percent of employee salary | 9.00% | ||
Plan contributions charged to expense | $ 6,500,000 | $ 7,100,000 | 7,200,000 |
Deferred compensation plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Market value of the trust assets, excluding the Company's common stock | 12,600,000 | 12,900,000 | |
Liabilities, including the Company's common stock | $ 24,200,000 | $ 22,400,000 | |
Number of common stock deferred into the rabbi trust (in shares) | shares | 495,774 | 534,174 | |
Company's common stock held in the rabbi trust | $ 5,100,000 | $ 5,700,000 | |
Company contributions to deferred compensation plan | $ 600,000 | $ 1,000,000 | $ 800,000 |
Employee Benefit Plans - Health
Employee Benefit Plans - Healthcare Trend Effect on Benefit Obligation (Details) - Postretirement Benefits Other than Pensions $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Effect of a one-percentage-point change in assumed health care cost trend rates | |
Effect of a 1 percentage-point increase in total of service and interest cost | $ 968 |
Effect of a 1 percentage-point decrease in total of service and interest cost | (721) |
Effect of a 1 percentage-point increase in postretirement benefit obligation | 6,828 |
Effect of a 1 percentage-point decrease in postretirement benefit obligation | $ (5,338) |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Estimated Future Benefit Payments (Details) - Postretirement Benefits Other than Pensions $ in Thousands | Dec. 31, 2016USD ($) |
Estimated future benefit payments | |
2,017 | $ 1,249 |
2,018 | 1,344 |
2,019 | 1,488 |
2,020 | 1,625 |
2,021 | 1,708 |
Years 2022 - 2026 | $ 10,489 |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 02, 2016 | Feb. 26, 2016 | Feb. 22, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 01, 2014 |
Incentive Plans | |||||||
Issuance of common stock (in shares) | 6,600,000 | 44,000,000 | |||||
Share price (in usd per share) | $ 19.675 | ||||||
Sale of common stock, net | $ 129,900 | $ 865,700 | $ 995,279 | $ 0 | $ 0 | ||
Number of shares repurchased | 0 | 0 | 4,300,000 | ||||
Cost of shares repurchased | $ 138,852 | ||||||
Cumulative number of shares repurchased under a share repurchase program | 29,900,000 | ||||||
Treasury stock, number of shares authorized to be repurchased | 40,000,000 | ||||||
Treasury stock, cumulative shares retired | 20,000,000 | ||||||
Cumulative cost of shares repurchased under a share repurchase program | $ 388,400 | ||||||
Treasury stock reissued | 0 | ||||||
Shares held as treasury stock (in shares) | 9,892,680 | 9,892,680 | |||||
2014 Incentive Plan | |||||||
Incentive Plans | |||||||
Number of shares reserved for issuance | 18,000,000 | ||||||
Number of shares available for issuance | 16,000,000 | ||||||
2014 Incentive Plan | Stock options | Maximum | |||||||
Incentive Plans | |||||||
Number of shares reserved for issuance | 10,000,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Awards (Details) - Restricted Stock Awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of restricted stock award activity (in shares) | |||
Outstanding at beginning of period (in shares) | 49,825 | 49,869 | 27,806 |
Granted (in shares) | 0 | 5,900 | 47,500 |
Vested (in shares) | (6,650) | (5,944) | (17,437) |
Forfeited (in shares) | 0 | 0 | (8,000) |
Outstanding at end of period (in shares) | 43,175 | 49,825 | 49,869 |
Weighted-Average Grant Date Fair Value per Share (in usd per share) | |||
Outstanding at beginning of period (in USD per share) | $ 33.76 | $ 33.40 | $ 20.53 |
Granted (in USD per share) | 0 | 25.44 | 34.76 |
Vested (in USD per share) | 33.02 | 22.55 | 15.84 |
Forfeited (in USD per share) | 0 | 0 | 35 |
Outstanding at end of period (in USD per share) | $ 33.87 | $ 33.76 | $ 33.40 |
Additional disclosures | |||
Aggregate intrinsic value | $ 1 | ||
Weighted-average remaining contractual term of non-vested shares | 3 months 17 days |
Stock-Based Compensation - Sc83
Stock-Based Compensation - Schedule of Restricted Units (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of restricted stock award activity (in shares) | |||
Outstanding at beginning of period (in shares) | 425,438 | 604,214 | 566,321 |
Granted and fully vested (in shares) | 69,302 | 51,292 | 37,893 |
Issued (in shares) | (146,202) | (230,068) | 0 |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding at end of period (in shares) | 348,538 | 425,438 | 604,214 |
Weighted-Average Grant Date Fair Value per Share (in usd per share) | |||
Outstanding at beginning of period (in USD per share) | $ 13.81 | $ 12.48 | $ 10.75 |
Granted and fully vested (USD per share) | 20.62 | 27.87 | 38.28 |
Issued (USD per share) | 14.17 | 13.45 | 0 |
Forfeited (in USD per share) | 0 | 0 | 0 |
Outstanding at end of period (in USD per share) | $ 15.01 | $ 13.81 | $ 12.48 |
Additional disclosures | |||
Aggregate intrinsic value | $ 8.1 |
Stock-Based Compensation - Sc84
Stock-Based Compensation - Schedule of Stock Appreciation Rights (Details) - Stock Appreciation Rights - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Stock Appreciation Rights Activity (in shares) | |||
Outstanding at beginning of period (in shares) | 558,546 | 667,764 | 667,764 |
Granted (in shares) | 0 | 0 | |
Exercised (in shares) | (75,260) | (109,218) | 0 |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding at end of period (in shares) | 483,286 | 558,546 | 667,764 |
Exercisable at end of period (in shares) | 483,286 | 558,546 | 590,960 |
Weighted-Average Exercise Price (in dollars per share) | |||
Outstanding at beginning of period (in USD per share) | $ 12.52 | $ 12.63 | $ 12.63 |
Granted (in USD per share) | 0 | 0 | |
Exercised (in USD per share) | 9.19 | 13.19 | 0 |
Forfeited (in USD per share) | 0 | 0 | 0 |
Outstanding at end of period (in USD per share) | 13.04 | 12.52 | 12.63 |
Exercisable at end of period (in USD per share) | $ 13.04 | $ 12.52 | $ 11.98 |
Additional disclosures | |||
Aggregate intrinsic value | $ 5 | ||
Weighted-average remaining contractual term of non-vested shares | 1 year 5 months 21 days | ||
Aggregate intrinsic value of stock appreciation rights exercisable | $ 5 | ||
Stock appreciation rights exercisable, weighted average remaining contractual term | 1 year 5 months 21 days |
Stock-Based Compensation - Sc85
Stock-Based Compensation - Schedule of Performance Awards (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Performance Share Awards | |||
Summary of employee performance share awards activity (in shares) | |||
Outstanding at beginning of period (in shares) | 925,590 | 1,088,960 | 1,657,980 |
Granted (in shares) | 435,990 | 349,780 | 241,130 |
Issued and fully vested | (340,960) | (504,620) | (751,780) |
Forfeited (in shares) | (27,090) | (8,530) | (58,370) |
Outstanding at end of period (in shares) | 993,530 | 925,590 | 1,088,960 |
Weighted-Average Grant Date Fair Value per Share (in usd per share) | |||
Outstanding at beginning of period (in USD per share) | $ 30.23 | $ 25.18 | $ 16.25 |
Granted (in USD per share) | 20.49 | 27.71 | 39.43 |
Issued and fully vested (in USD per share) | 26.62 | 17.59 | 10.19 |
Forfeited (in USD per share) | 27.77 | 31.11 | 23.57 |
Outstanding at end of period (in USD per share) | $ 27.26 | $ 30.23 | $ 25.18 |
Hybrid Performance Shares | |||
Summary of employee performance share awards activity (in shares) | |||
Outstanding at beginning of period (in shares) | 372,385 | 329,061 | 450,212 |
Granted (in shares) | 271,938 | 194,947 | 123,257 |
Issued and fully vested | (164,539) | (151,623) | (244,408) |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding at end of period (in shares) | 479,784 | 372,385 | 329,061 |
Weighted-Average Grant Date Fair Value per Share (in usd per share) | |||
Outstanding at beginning of period (in USD per share) | $ 30.37 | $ 29.27 | $ 18.96 |
Granted (in USD per share) | 20.49 | 27.71 | 39.43 |
Issued and fully vested (in USD per share) | 29.34 | 24.56 | 15.41 |
Forfeited (in USD per share) | 0 | 0 | 0 |
Outstanding at end of period (in USD per share) | $ 25.12 | $ 30.37 | $ 29.27 |
TSR Performance Share Awards | |||
Summary of employee performance share awards activity (in shares) | |||
Outstanding at beginning of period (in shares) | 732,286 | 674,787 | 860,686 |
Granted (in shares) | 407,907 | 292,421 | 184,885 |
Issued and fully vested | (254,980) | (234,922) | (370,784) |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding at end of period (in shares) | 885,213 | 732,286 | 674,787 |
Weighted-Average Grant Date Fair Value per Share (in usd per share) | |||
Outstanding at beginning of period (in USD per share) | $ 23.82 | $ 22.42 | $ 14.06 |
Granted (in USD per share) | 18.57 | 19.29 | 32.04 |
Issued and fully vested (in USD per share) | 23.06 | 14.16 | 7.81 |
Forfeited (in USD per share) | 0 | 0 | 0 |
Outstanding at end of period (in USD per share) | $ 21.62 | $ 23.82 | $ 22.42 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions for Share Based Awards (Details) - TSR Performance Share Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liability | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.30% |
Stock price volatility, minimum rate | 40.40% | 33.50% | 29.10% |
Stock price volatility, maximum rate | 43.00% | 37.50% | 29.70% |
Risk free rate of return, minimum rate | 0.90% | 0.70% | 0.30% |
Risk free rate of return, maximum rate | 1.20% | 1.10% | 0.70% |
Stockholders' Equity | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per performance share award granted during the period | $ 18.57 | $ 19.29 | $ 32.04 |
Stock price volatility | 34.40% | 32.30% | 41.30% |
Risk free rate of return | 0.90% | 1.00% | 0.70% |
Expected dividend yield | 0.00% | 0.30% | 0.20% |
Minimum | Liability | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per performance share award granted during the period | $ 5.59 | $ 2.49 | $ 12.88 |
Maximum | Liability | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per performance share award granted during the period | $ 7.10 | $ 6.39 | $ 29.72 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | Feb. 22, 2016USD ($)shares | Feb. 19, 2016performance_criteria | Jan. 05, 2016USD ($)shares | Feb. 28, 2015 | Dec. 31, 2016USD ($)Award_Typeshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 26,000,000 | $ 13,700,000 | $ 21,500,000 | ||||
Stock-based compensation tax benefit | 2,126,000 | 1,375,000 | |||||
Stock-based compensation tax benefit | 0 | 0 | (1,375,000) | ||||
Defined contribution cost recognized | $ 1,800,000 | (6,400,000) | (4,900,000) | ||||
Deferred Compensation, Share-based Payments | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares held in employee trust earned but not distributed (in shares) | shares | 495,774 | ||||||
Shares issued in period (in shares) | shares | 38,400 | ||||||
Restricted Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 400,000 | 400,000 | 1,000,000 | ||||
Award vesting period | 3 years | ||||||
Compensation cost not yet recognized | $ 100,000 | ||||||
Fair value of award | 200,000 | 200,000 | 600,000 | ||||
Aggregate intrinsic value | $ 1,000,000 | ||||||
Weighted-average remaining contractual term of non-vested shares | 3 months 17 days | ||||||
Restricted Stock Awards | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected forfeiture rate | 5.00% | ||||||
Restricted Stock Awards | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected forfeiture rate | 6.00% | ||||||
Restricted Stock Awards | Graduated or graded vesting | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Restricted Stock Awards | Graduated or graded vesting | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 4 years | ||||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 1,400,000 | 1,400,000 | 1,500,000 | ||||
Aggregate intrinsic value | $ 8,100,000 | ||||||
Stock Appreciation Rights | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | 100,000 | ||||||
Compensation cost not yet recognized | 0 | ||||||
Term of award | 7 years | ||||||
Aggregate intrinsic value | $ 5,000,000 | ||||||
Weighted-average remaining contractual term of non-vested shares | 1 year 5 months 21 days | ||||||
Stock Appreciation Rights | Graduated or graded vesting | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Award vesting percentage | 33.33% | ||||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 21,300,000 | 18,300,000 | 20,800,000 | ||||
Award vesting period | 3 years | ||||||
Compensation cost not yet recognized | $ 19,300,000 | ||||||
Number of performance award types | Award_Type | 3 | ||||||
Period of recognition for unrecognized compensation costs | 11 months 4 days | ||||||
Aggregate intrinsic value | $ 55,100,000 | ||||||
Weighted-average remaining contractual term of non-vested shares | 1 year 3 months 14 days | ||||||
Number of performance awards where the performance period has ended | Award_Type | 2 | ||||||
Performance Shares | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected forfeiture rate | 0.00% | ||||||
Performance Shares | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected forfeiture rate | 6.00% | ||||||
Internal Metrics Performance Share Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of performance award types | Award_Type | 2 | ||||||
Rights to share portion of award, maximum percent | 100.00% | ||||||
Market Based Performance Share Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of performance award types | Award_Type | 1 | ||||||
Rights to share portion of award, maximum percent | 100.00% | ||||||
Rights to cash portion of award, maximum percent | 100.00% | ||||||
Employee Performance Share Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | 3 years | |||||
Number of performance criteria | performance_criteria | 3 | ||||||
Number of performance awards issued and certified (in shares) | shares | 225,780 | ||||||
Grant date fair value of performance shares issued and certified | $ 8,900,000 | ||||||
Employee Performance Share Awards | Performance metric: average production | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 33.33% | ||||||
Employee Performance Share Awards | Performance metric: average finding costs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 33.33% | ||||||
Employee Performance Share Awards | Performance metric: average reserve replacement | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 33.33% | ||||||
Hybrid Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Minimum operating cash flow for performance based award | $ 100,000,000 | ||||||
Hybrid Performance Shares | Graduated or graded vesting | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Hybrid Performance Shares | 25% vesting on first and second anniversary | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 25.00% | ||||||
Hybrid Performance Shares | 50% vesting on third anniversary | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 50.00% | ||||||
TSR Performance Share Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance period of peer group | 3 years | ||||||
Cash payments for share-based compensation | $ 1,800,000 | 7,000,000 | 14,300,000 | ||||
Number of performance awards issued and certified (in shares) | shares | 157,147 | ||||||
Grant date fair value of performance shares issued and certified | $ 5,000,000 | ||||||
TSR Performance Share Awards | Liability | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Current portion of share-based liability | 0 | 1,800,000 | |||||
Noncurrent portion of share-based liability | 2,100,000 | 900,000 | |||||
SEIP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 0 | $ (300,000) | 3,000,000 | ||||
Number of trading days during which the closing price meets or exceeds the goal price | 20 days | ||||||
Number of consecutive trading days for payout | 60 days | ||||||
Period for interim goal | 2 years | ||||||
Period for final goal | 4 years | ||||||
Percent of employee salary for interim goal | 20.00% | ||||||
Percent of employee salary for final goal | 50.00% | ||||||
Percent of employee salary if interim goal is met | 30.00% | ||||||
Payments related to share-based compensation | $ 13,000,000 | ||||||
Percent of aggregate distribution paid immediately | 25.00% | ||||||
Percent of aggregate distribution paid subsequently | 75.00% |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of EPS (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Weighted-average shares - basic (in shares) | 456,847 | 413,696 | 415,840 |
Dilution effect of stock options, stock appreciation rights and stock awards at end of period (in shares) | 0 | 0 | 1,761 |
Weighted-average shares - diluted (in shares) | 456,847 | 413,696 | 417,601 |
Earnings per Common Share - Cal
Earnings per Common Share - Calculation of Weighted-Average Shares Excluded from Diluted EPS (Details) - Stock Compensation Plan - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect due to net loss | 1,478 | 1,481 | 0 |
Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method | 1 | 2 | 20 |
Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect | 1,479 | 1,483 | 20 |
Accumulated Other Comprehensi90
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in accumulated other comprehensive income (loss) by component, net of tax | |||
Balance at beginning of period | $ 2,009,188 | $ 2,142,733 | $ 2,204,602 |
Other comprehensive income (loss) before reclassifications | 1,280 | 1,786 | (80,500) |
Amounts reclassified from accumulated other comprehensive income (loss) | 70 | 86,710 | |
Total other comprehensive income | 1,350 | 1,786 | 6,210 |
Balance at end of period | 2,567,667 | 2,009,188 | 2,142,733 |
Accumulated Other Comprehensive Income (Loss) | |||
Changes in accumulated other comprehensive income (loss) by component, net of tax | |||
Balance at beginning of period | (365) | (2,151) | (8,361) |
Balance at end of period | 985 | (365) | (2,151) |
Net Gains (Losses) on Cash Flow Hedges | |||
Changes in accumulated other comprehensive income (loss) by component, net of tax | |||
Balance at beginning of period | 0 | 0 | (6,551) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | (80,175) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 86,726 | |
Total other comprehensive income | 0 | 0 | 6,551 |
Balance at end of period | 0 | 0 | 0 |
Postretirement Benefits | |||
Changes in accumulated other comprehensive income (loss) by component, net of tax | |||
Balance at beginning of period | (365) | (2,151) | (1,810) |
Other comprehensive income (loss) before reclassifications | 1,280 | 1,786 | (325) |
Amounts reclassified from accumulated other comprehensive income (loss) | 70 | (16) | |
Total other comprehensive income | 1,350 | 1,786 | (341) |
Balance at end of period | $ 985 | $ (365) | $ (2,151) |
Accumulated Other Comprehensi91
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | |||
Natural gas revenues | $ 1,022,590 | $ 1,025,044 | $ 1,590,625 |
Crude oil and condensate revenues | 151,106 | 248,211 | 313,889 |
General and administrative | 87,242 | 69,444 | 82,590 |
Income (loss) before income taxes | (659,599) | (187,273) | 32,401 |
Income tax benefit | 242,475 | 73,382 | 72,067 |
NET INCOME (LOSS) | (417,124) | (113,891) | 104,468 |
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | |||
Income (loss) before income taxes | (111) | 0 | (144,177) |
Income tax benefit | 41 | 0 | 57,467 |
NET INCOME (LOSS) | (70) | 0 | (86,710) |
Net gains (losses) 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 | 0 | (143,577) |
Crude oil and condensate revenues | 0 | 0 | (626) |
Amortization of prior service cost | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | |||
General and administrative | 111 | 0 | 0 |
Amortization of net (gain) loss | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | |||
General and administrative | $ 0 | $ 0 | $ (26) |
Additional Balance Sheet Info92
Additional Balance Sheet Information - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts receivable, net | ||
Trade accounts | $ 185,594 | $ 116,772 |
Joint interest accounts | 1,359 | 2,013 |
Income taxes receivable | 10,298 | 4,323 |
Other accounts | 5,335 | 2,557 |
Receivables gross current | 192,288 | 121,342 |
Allowance for doubtful accounts | (1,243) | (1,113) |
Accounts receivable, net | 191,045 | 120,229 |
Inventories | ||
Tubular goods and well equipment | 11,005 | 14,685 |
Natural gas in storage | 2,299 | 2,364 |
Inventory, net | 13,304 | 17,049 |
Other assets | ||
Deferred compensation plan | 12,587 | 12,921 |
Debt issuance cost | 11,403 | 14,871 |
Derivative instruments | 2,991 | 0 |
Other accounts | 58 | 64 |
Other assets | 27,039 | 27,856 |
Accounts payable | ||
Trade accounts | 27,355 | 30,038 |
Natural gas purchases | 2,231 | 2,231 |
Royalty and other owners | 85,449 | 75,106 |
Accrued capital costs | 34,647 | 27,479 |
Taxes other than income | 13,827 | 14,628 |
Other accounts | 4,902 | 10,925 |
Accounts payable current | 168,411 | 160,407 |
Accrued liabilities | ||
Employee benefits | 14,153 | 13,870 |
Taxes other than income | 3,829 | 5,073 |
Interest payable | 27,650 | 30,222 |
Asset retirement obligations | 2,000 | 2,000 |
Other accounts | 1,510 | 3,980 |
Accrued liabilities | 21,492 | 24,923 |
Other liabilities | ||
Deferred compensation plan | 24,169 | 22,371 |
Other accounts | 4,952 | 3,653 |
Other liabilities | $ 29,121 | $ 26,024 |
Supplemental Cash Flow Inform93
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash paid for interest and income taxes | |||
Interest | $ 86,723 | $ 92,749 | $ 58,487 |
Income taxes | 688 | 7,550 | 77,029 |
Non-cash investing activities | |||
Change in accrued capital costs | $ 7,168 | $ (194,947) | $ 72,603 |