Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 24, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | CABOT OIL & GAS CORP | |
Entity Central Index Key | 858,470 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 465,523,385 | |
Entity Current Reporting Status | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 537,485 | $ 498,542 |
Accounts receivable, net | 192,783 | 191,045 |
Income taxes receivable | 1,601 | 10,298 |
Inventories | 12,095 | 13,304 |
Other current assets | 4,349 | 2,692 |
Total current assets | 748,313 | 715,881 |
Properties and equipment, net (Successful efforts method) | 4,328,360 | 4,250,125 |
Equity method investments | 135,983 | 129,524 |
Other assets | 31,732 | 27,039 |
TOTAL ASSETS | 5,244,388 | 5,122,569 |
Current liabilities | ||
Accounts payable | 183,305 | 168,411 |
Accrued liabilities | 14,299 | 21,492 |
Interest payable | 12,262 | 27,650 |
Income taxes payable | 1,837 | 0 |
Derivative instruments | 12,692 | 40,259 |
Total current liabilities | 224,395 | 257,812 |
Long-term debt, net | 1,520,870 | 1,520,530 |
Deferred income taxes | 590,575 | 579,447 |
Asset retirement obligations | 133,526 | 131,733 |
Postretirement benefits | 37,042 | 36,259 |
Other liabilities | 30,801 | 29,121 |
Total liabilities | 2,537,209 | 2,554,902 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock: Authorized - 960,000,000 shares of $0.10 par value in 2017 and 2016 Issued - 475,414,452 shares and 475,042,692 shares in 2017 and 2016, respectively | 47,541 | 47,504 |
Additional paid-in capital | 1,728,182 | 1,727,310 |
Retained earnings | 1,237,289 | 1,098,703 |
Accumulated other comprehensive income | 1,002 | 985 |
Less treasury stock, at cost: 9,892,680 shares in 2016 and 2015, respectively | (306,835) | (306,835) |
Total stockholders' equity | 2,707,179 | 2,567,667 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 5,244,388 | $ 5,122,569 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, authorized (shares) | 960,000,000 | 960,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, issued (shares) | 475,414,452 | 475,042,692 |
Treasury stock (shares) | 9,892,680 | 9,892,680 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
OPERATING REVENUES | ||
Natural gas | $ 433,442 | $ 227,578 |
Crude oil and condensate | 42,990 | 30,676 |
Gain on derivative instruments | 33,384 | 18,994 |
Brokered natural gas | 4,695 | 3,180 |
Other | 3,332 | 1,513 |
TOTAL OPERATING REVENUES | 517,843 | 281,941 |
OPERATING EXPENSES | ||
Direct operations | 24,641 | 26,035 |
Transportation and gathering | 123,474 | 109,652 |
Brokered natural gas | 4,046 | 2,566 |
Taxes other than income | 9,058 | 5,994 |
Exploration | 6,198 | 6,383 |
Depreciation, depletion and amortization | 135,100 | 161,887 |
General and administrative | 23,700 | 27,873 |
TOTAL OPERATING EXPENSES | 326,217 | 340,390 |
Earnings (loss) on equity method investments | (1,283) | 2,009 |
Gain (loss) on sale of assets | (223) | 1,354 |
INCOME (LOSS) FROM OPERATIONS | 190,120 | (55,086) |
Interest expense | 20,771 | 24,375 |
Other expense | 424 | 503 |
Income (loss) before income taxes | 168,925 | (79,964) |
Income tax expense (benefit) | 63,205 | (28,770) |
NET INCOME (LOSS) | $ 105,720 | $ (51,194) |
Earnings (loss) per share | ||
Basic (in dollars per share) | $ 0.23 | $ (0.12) |
Diluted (in dollars per share) | $ 0.23 | $ (0.12) |
Weighted-average common shares outstanding | ||
Basic (in shares) | 465,348 | 431,841 |
Diluted (in shares) | 466,888 | 431,841 |
Dividends per common share (in dollars per share) | $ 0.02 | $ 0.02 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 105,720 | $ (51,194) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation, depletion and amortization | 135,100 | 161,887 |
Deferred income tax expense (benefit) | 53,289 | (28,973) |
(Gain) loss on sale of assets | 223 | (1,354) |
Exploratory dry hole cost | 2,842 | 0 |
Gain on derivative instruments | (33,384) | (18,994) |
Net cash paid in settlement of derivative instruments | (1,524) | 0 |
(Earnings) loss on equity method investments | 1,283 | (2,009) |
Amortization of debt issuance costs | 1,189 | 1,191 |
Stock-based compensation and other | 8,283 | 10,606 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (1,738) | 19,358 |
Income taxes | 10,534 | 233 |
Inventories | 1,209 | 1,101 |
Other current assets | 1,170 | 1,300 |
Accounts payable and accrued liabilities | 151 | (9,610) |
Interest payable | (15,388) | (16,660) |
Other assets and liabilities | 419 | 230 |
Net cash provided by operating activities | 269,378 | 67,112 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (208,384) | (92,237) |
Proceeds from sale of assets | 374 | 49,828 |
Investment in equity method investments | (7,742) | (11,652) |
Net cash used in investing activities | (215,752) | (54,061) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings from debt | 0 | 90,000 |
Repayments of debt | 0 | (503,000) |
Sale of common stock, net | 0 | 995,278 |
Dividends paid | (9,306) | (8,282) |
Tax withholdings on stock award vestings | (5,414) | (5,022) |
Capitalized debt issuance costs | 0 | (3,223) |
Other | 37 | 0 |
Net cash provided by (used in) financing activities | (14,683) | 565,751 |
Net increase in cash and cash equivalents | 38,943 | 578,802 |
Cash and cash equivalents, beginning of period | 498,542 | 514 |
Cash and cash equivalents, end of period | 537,485 | 579,316 |
Supplemental non-cash investing transactions: | ||
Change in accrued capital costs | $ 6,695 | $ (549) |
Financial Statement Presentatio
Financial Statement Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation During interim periods, Cabot Oil & Gas Corporation (the Company) follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2016 (Form 10-K) filed with the Securities and Exchange Commission (SEC). The interim financial statements should be read in conjunction with the notes to the consolidated financial statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the expected results for the entire year. Certain reclassifications have been made to prior year statements to conform with the current year presentation. Recently Adopted Accounting Pronouncements Stock-Based Compensation. In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, as an amendment to Accounting Standards Codification (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. 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 has been recognized retrospectively beginning January 1, 2015. Prior periods have been adjusted as follows: Net Cash Provided by Operating Activities Net Cash Provided by Financing Activities (In thousands) As Reported As Adjusted As Reported As Adjusted Year ended December 31, 2015 $ 740,737 $ 749,598 $ 232,157 $ 223,296 Three months ended March 31, 2016 62,090 67,112 570,773 565,751 Six months ended June 30, 2016 147,244 152,290 497,474 492,428 Nine months ended September 30, 2016 252,649 257,705 468,171 463,115 Year ended December 31, 2016 392,377 398,441 458,869 453,805 The remaining provisions of this amendment did not have a material 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. Retirement Benefits . In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715). The amendments in this update require that an employer report the service cost component of postretirement benefits in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued or made available for issuance. The amendments in this update should be applied retrospectively for the presentation of the service cost component and the other components of net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic benefit cost in assets. The Company elected to adopt this guidance effective January 1, 2017. The reclassification of interest and amortization of prior service cost resulted in an increase in operating income and an increase in other expense (non-operating expense) of $1.6 million and $1.4 million for the years ended December 31, 2016 and 2015 and $0.5 million for the three months ended March 31, 2016, respectively. Recently Issued Accounting Pronouncements Financial Instruments. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall, as an amendment to 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. 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 is to 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. |
Properties and Equipment, Net
Properties and Equipment, Net | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment, Net | Properties and Equipment, Net Properties and equipment, net are comprised of the following: (In thousands) March 31, December 31, Proved oil and gas properties $ 7,589,749 $ 7,437,604 Unproved oil and gas properties 296,279 260,543 Gathering and pipeline systems 188,466 187,846 Land, building and other equipment 85,257 84,462 8,159,751 7,970,455 Accumulated depreciation, depletion and amortization (3,831,391 ) (3,720,330 ) $ 4,328,360 $ 4,250,125 At March 31, 2017 , the Company did not have any projects that had exploratory well costs capitalized for a period of greater than one year after drilling. In February 2016, the Company completed the divestiture of certain proved and unproved oil and gas properties in east Texas for approximately $56.4 million and recognized a $0.5 million gain on sale of assets. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The Company holds a 25% equity interest in Constitution Pipeline Company, LLC (Constitution) and a 20% equity interest in Meade Pipeline Co LLC (Meade). Activity related to these equity method investments is as follows: Constitution Meade Total Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, (In thousands) 2017 2016 2017 2016 2017 2016 Balance at beginning of period $ 96,850 $ 90,345 $ 32,674 $ 13,172 $ 129,524 $ 103,517 Contributions 1,125 6,250 6,617 5,402 7,742 11,652 Earnings (loss) on equity method investments (1,282 ) 2,011 (1 ) (2 ) (1,283 ) 2,009 Balance at end of period $ 96,693 $ 98,606 $ 39,290 $ 18,572 $ 135,983 $ 117,178 During 2017 , the Company expects to contribute approximately $70.0 million to its equity method investments. For further information regarding the Company’s equity method investments, refer to Note 4 of the Notes to the Consolidated Financial Statements in the Form 10-K. Constitution 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 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. On March 16, 2017, the U.S. District Court for the Northern District of New York issued an order ruling, without prejudice, that it lacked subject matter jurisdiction to hear Constitution’s complaint. The U.S. Court of Appeals has heard oral arguments but has not yet ruled on Constitution's appeal. 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 U.S. Court of Appeals 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 March 31, 2017 , 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, the pending appeal filed by Constitution 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 March 31, 2017 , the Company has made contributions of $89.7 million since inception of the project. |
Debt and Credit Agreements
Debt and Credit Agreements | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements The Company’s debt and credit agreements consisted of the following: (In thousands) March 31, December 31, 6.51% weighted-average senior notes $ 361,000 $ 361,000 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 1,528,000 1,528,000 Unamortized debt issuance costs (7,130 ) (7,470 ) $ 1,520,870 $ 1,520,530 The borrowing base under the terms of the Company's revolving credit facility is redetermined annually in April. In addition, either the Company or the banks may request an interim redetermination twice a year or in connection with certain acquisitions or divestitures of oil and gas properties. Effective April 11, 2017 , the borrowing base and available commitments were reaffirmed at $3.2 billion and $1.7 billion , respectively. At March 31, 2017 , the Company was in compliance with all restrictive financial covenants for both its revolving credit facility and senior notes. As of March 31, 2017 , based on the Company's asset coverage and leverage ratios, there were no interest rate adjustments required for the Company's senior notes. At March 31, 2017 , the Company had no borrowings outstanding under its revolving credit facility and had unused commitments of $1.7 billion . The Company’s weighted-average effective interest rate for the revolving credit facility for the three months ended March 31, 2016 was approximately 2.3% . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As of March 31, 2017 , the Company had the following outstanding commodity derivatives: Collars Basis Swaps Floor Ceiling Swaps Type of Contract Volume Contract Period Range Weighted-Average Range Weighted-Average Weighted-Average Weighted-Average Natural gas 26.7 Bcf Apr. 2017 - Dec. 2017 $ 3.12 Natural gas 13.4 Bcf Apr. 2017 - Dec. 2017 $ 3.46 Natural gas 26.7 Bcf Apr. 2017 - Dec. 2017 $ — $ 3.09 $3.42-$3.45 $ 3.43 Natural gas 21.3 Bcf Jan. 2018 - Dec. 2019 $ 0.42 Crude oil 1.4 Mmbbl Apr. 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 Condensed Consolidated Balance Sheet Derivative Assets Derivative Liabilities (In thousands) Balance Sheet Location March 31, December 31, March 31, December 31, Commodity contracts Other current assets $ 2,826 $ — $ — $ — Commodity contracts Other assets (non-current) 7,506 2,991 — — Commodity contracts Derivative instruments (current) — — 12,692 40,259 $ 10,332 $ 2,991 $ 12,692 $ 40,259 Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In thousands) March 31, December 31, Derivative assets Gross amounts of recognized assets $ 12,354 $ 2,991 Gross amounts offset in the statement of financial position (2,022 ) — Net amounts of assets presented in the statement of financial position 10,332 2,991 Gross amounts of financial instruments not offset in the statement of financial position 51 — Net amount $ 10,383 $ 2,991 Derivative liabilities Gross amounts of recognized liabilities $ 14,714 $ 40,259 Gross amounts offset in the statement of financial position (2,022 ) — Net amounts of liabilities presented in the statement of financial position 12,692 40,259 Gross amounts of financial instruments not offset in the statement of financial position — 757 Net amount $ 12,692 $ 41,016 Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations Three Months Ended (In thousands) 2017 2016 Cash received (paid) on settlement of derivative instruments Gain (loss) on derivative instruments $ (1,524 ) $ — Non-cash gain (loss) on derivative instruments Gain (loss) on derivative instruments 34,908 18,994 $ 33,384 $ 18,994 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company follows the authoritative guidance for measuring fair value of assets and liabilities in its financial statements. For further information regarding the fair value hierarchy, refer to Note 1 of the Notes to the Consolidated Financial Statements in the Form 10-K. Financial Assets and Liabilities The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis: (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Assets Deferred compensation plan $ 13,566 $ — $ — $ 13,566 Derivative instruments — — 10,332 10,332 Total assets $ 13,566 $ — $ 10,332 $ 23,898 Liabilities Deferred compensation plan $ 25,420 $ — $ — $ 25,420 Derivative instruments — 7,429 5,263 12,692 Total liabilities $ 25,420 $ 7,429 $ 5,263 $ 38,112 (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 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: Three Months Ended (In thousands) 2017 2016 Balance at beginning of period $ (15,868 ) $ — Total gain (loss) included in earnings 21,918 3,647 Settlement (gain) loss (981 ) — Transfers in and/or out of level 3 — — Balance at end of period $ 5,069 $ 3,647 Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ 20,937 $ 3,647 There were no transfers between Level 1 and Level 2 fair value measurements for the three months ended March 31, 2017 and 2016 . Non-Financial Assets and Liabilities The Company discloses or recognizes its non-financial assets and liabilities, such as impairments, at fair value on a nonrecurring basis. The Company recorded an impairment charge related to certain oil and gas properties and other assets during the year ended December 31, 2016 . Refer to Note 3 of the Notes to the Consolidated Financial Statements in the Form 10-K 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 March 31, 2017 and December 31, 2016 , 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 other financial instruments is the amount at which the instrument could be exchanged currently between willing parties. The carrying amount reported in the Condensed Consolidated Balance Sheet for cash and cash equivalents approximates fair value due to the short-term maturities of these instruments. Cash and cash equivalents are classified as Level 1 in the fair value hierarchy 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: March 31, 2017 December 31, 2016 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Debt $ 1,520,870 $ 1,500,879 $ 1,520,530 $ 1,463,643 |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2017 | |
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) Three Months Ended Balance at beginning of period $ 133,733 Liabilities incurred 702 Liabilities settled (696 ) Accretion expense 1,787 Balance at end of period $ 135,526 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Obligations The Company has various contractual obligations in the normal course of its operations. There have been no material changes to the Company’s contractual obligations described under “Transportation and Gathering Agreements,” “Drilling Rig Commitments,” “Lease Commitments” and “Hydraulic Fracturing Services Commitments” as disclosed in Note 9 in the Notes to Consolidated Financial Statements included in the Form 10-K. Legal Matters The Company is a defendant in various legal proceedings arising in the normal course of business. All known liabilities are accrued when management determines they are probable based on its best estimate of the potential loss. While the outcome and impact of these legal proceedings on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings will not have a material effect on the Company’s financial position, results of operations or cash flows. Contingency Reserves When deemed necessary, the Company establishes reserves for certain legal proceedings. The establishment of a reserve is based on an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible that the Company could incur additional losses with respect to those matters in which reserves have been established. The Company believes that any such amount above the amounts accrued would not be material to the Condensed Consolidated Financial Statements. Future changes in facts and circumstances not currently foreseeable could result in the actual liability exceeding the estimated ranges of loss and amounts accrued. |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Capital Stock | Capital Stock 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. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation General From time to time the Company grants certain stock-based compensation awards, including restricted stock awards, restricted stock units and performance share awards. Stock-based compensation expense associated with these awards was $8.3 million and $10.6 million in the first quarter of 2017 and 2016 , respectively. Stock-based compensation expense is included in general and administrative expense in the Condensed Consolidated Statement of Operations. As described in Note 1 to the Condensed Consolidated Financial Statements, effective January 1, 2017, the Company adopted ASU No. 2016-09, which requires that excess tax benefits and tax deficiencies on stock-based compensation be recorded in the income statement. During the first three months of 2017 , the Company recorded an increase to tax expense of $0.8 million in the Condensed Consolidated Statement of Operations as a result of book compensation cost for employee stock-based compensation exceeding the federal and state tax deductions for awards that vested during the period. Prior to the adoption of ASU No. 2016-09, windfall tax benefits were recorded in additional paid in capital in the Condensed Consolidated Balance Sheet and tax shortfalls reduced additional paid in capital to the extent they offset previously recorded windfall tax benefits. During the first three months of 2016 , the Company recorded a tax shortfall of $2.0 million , resulting in a reduction of the Company's windfall tax benefit that was recorded in additional paid in capital in the Condensed Consolidated Balance Sheet. The tax shortfall was a result of book compensation cost for employee stock-based compensation exceeding the federal and state tax deductions for certain awards that vested during the period. Refer to Note 13 of the Notes to the Consolidated Financial Statements in the Form 10-K for further description of the various types of stock-based compensation awards and the applicable award terms. Restricted Stock Units During the first three months of 2017 , 46,618 restricted stock units were granted to non-employee directors of the Company with a weighted-average grant date value of $22.57 per unit. The fair value of these units is measured based on the closing stock price on grant date and compensation expense is recorded immediately. These units immediately vest and are issued when the director ceases to be a director of the Company. Performance Share Awards The performance period for the awards granted during the first three months of 2017 commenced on January 1, 2017 and ends on December 31, 2019 . 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 share award grants based on internal performance metrics is based on the closing stock price on the grant date. Each performance share award represents the right to receive up to 100% of the award in shares of common stock. Based on the Company’s probability assessment at March 31, 2017 , it is considered probable that the criteria for all performance awards based on internal metrics awards will be met. Employee Performance Share Awards. During the first three months of 2017 , 406,460 Employee Performance Share Awards were granted at a grant date value of $22.60 per share. The performance metrics are set by the Company’s compensation committee and are based on the Company’s average production, average finding costs and average reserve replacement over a three -year performance period. Hybrid Performance Share Awards. During the first three months of 2017 , 272,920 Hybrid Performance Share Awards were granted at a grant date value of $22.60 per share. The 2017 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. Performance Share Awards Based on Market Conditions These awards have both an equity and liability component, with the right to receive up to the first 100% of the award in shares of common stock and the right to receive up to an additional 100% of the value of the award in excess of the equity component in cash. The equity portion of these awards is valued on the grant date and is not marked to market, while the liability portion of the awards is valued as of the end of each reporting period on a mark-to-market basis. The Company calculates the fair value of the equity and liability portions of the awards using a Monte Carlo simulation model. TSR Performance Share Awards. During the first three months of 2017 , 409,380 TSR Performance Share Awards were granted and are earned, or not earned, based on the comparative performance of the Company’s common stock measured against a predetermined group of companies in the Company’s peer group over a three -year performance period. The following assumptions were used to determine the grant date fair value of the equity component (February 22, 2017 ) and the period-end fair value of the liability component of the TSR Performance Share Awards: Grant Date March 31, 2017 Fair value per performance share award $ 19.85 $7.35 - $14.16 Assumptions: Stock price volatility 37.8 % 36.0% - 43.3% Risk free rate of return 1.4 % 1.0% - 1.4% |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2017 | |
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: Three Months Ended (In thousands) 2017 2016 Weighted-average shares - basic 465,348 431,841 Dilution effect of stock appreciation rights and stock awards at end of period 1,540 — Weighted-average shares - diluted 466,888 431,841 The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect: Three Months Ended (In thousands) 2017 2016 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect due to net loss — 700 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method 477 28 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect 477 728 |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Additional Balance Sheet Information Certain balance sheet amounts are comprised of the following: (In thousands) March 31, December 31, Accounts receivable, net Trade accounts $ 189,244 $ 185,594 Joint interest accounts 1,448 1,359 Other accounts 3,334 5,335 194,026 192,288 Allowance for doubtful accounts (1,243 ) (1,243 ) $ 192,783 $ 191,045 Inventories Tubular goods and well equipment $ 10,335 $ 11,005 Natural gas in storage 1,760 2,299 $ 12,095 $ 13,304 Other current assets Prepaid balances and other $ 1,523 $ 2,692 Derivative instruments 2,826 — $ 4,349 $ 2,692 Other assets Deferred compensation plan $ 13,566 $ 12,587 Debt issuance costs 10,554 11,403 Derivative instruments 7,506 2,991 Other accounts 106 58 $ 31,732 $ 27,039 Accounts payable Trade accounts $ 27,881 $ 27,355 Natural gas purchases 903 2,231 Royalty and other owners 92,562 85,449 Accrued capital costs 41,342 34,647 Taxes other than income 17,780 13,827 Other accounts 2,837 4,902 $ 183,305 $ 168,411 Accrued liabilities Employee benefits $ 6,746 $ 14,153 Taxes other than income 4,025 3,829 Asset retirement obligations 2,000 2,000 Other accounts 1,528 1,510 $ 14,299 $ 21,492 Other liabilities Deferred compensation plan $ 25,420 $ 24,169 Other accounts 5,381 4,952 $ 30,801 $ 29,121 |
Financial Statement Presentat18
Financial Statement Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements Stock-Based Compensation. In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, as an amendment to Accounting Standards Codification (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. 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 has been recognized retrospectively beginning January 1, 2015. Prior periods have been adjusted as follows: Net Cash Provided by Operating Activities Net Cash Provided by Financing Activities (In thousands) As Reported As Adjusted As Reported As Adjusted Year ended December 31, 2015 $ 740,737 $ 749,598 $ 232,157 $ 223,296 Three months ended March 31, 2016 62,090 67,112 570,773 565,751 Six months ended June 30, 2016 147,244 152,290 497,474 492,428 Nine months ended September 30, 2016 252,649 257,705 468,171 463,115 Year ended December 31, 2016 392,377 398,441 458,869 453,805 The remaining provisions of this amendment did not have a material 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. Retirement Benefits . In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715). The amendments in this update require that an employer report the service cost component of postretirement benefits in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued or made available for issuance. The amendments in this update should be applied retrospectively for the presentation of the service cost component and the other components of net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic benefit cost in assets. The Company elected to adopt this guidance effective January 1, 2017. The reclassification of interest and amortization of prior service cost resulted in an increase in operating income and an increase in other expense (non-operating expense) of $1.6 million and $1.4 million for the years ended December 31, 2016 and 2015 and $0.5 million for the three months ended March 31, 2016, respectively. Recently Issued Accounting Pronouncements Financial Instruments. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall, as an amendment to 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. 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 is to 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. |
Financial Statement Presentat19
Financial Statement Presentation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | 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 has been recognized retrospectively beginning January 1, 2015. Prior periods have been adjusted as follows: Net Cash Provided by Operating Activities Net Cash Provided by Financing Activities (In thousands) As Reported As Adjusted As Reported As Adjusted Year ended December 31, 2015 $ 740,737 $ 749,598 $ 232,157 $ 223,296 Three months ended March 31, 2016 62,090 67,112 570,773 565,751 Six months ended June 30, 2016 147,244 152,290 497,474 492,428 Nine months ended September 30, 2016 252,649 257,705 468,171 463,115 Year ended December 31, 2016 392,377 398,441 458,869 453,805 |
Properties and Equipment, Net (
Properties and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of properties and equipment, net | Properties and equipment, net are comprised of the following: (In thousands) March 31, December 31, Proved oil and gas properties $ 7,589,749 $ 7,437,604 Unproved oil and gas properties 296,279 260,543 Gathering and pipeline systems 188,466 187,846 Land, building and other equipment 85,257 84,462 8,159,751 7,970,455 Accumulated depreciation, depletion and amortization (3,831,391 ) (3,720,330 ) $ 4,328,360 $ 4,250,125 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Information Related to the Company's Equity Method Investments | Activity related to these equity method investments is as follows: Constitution Meade Total Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, (In thousands) 2017 2016 2017 2016 2017 2016 Balance at beginning of period $ 96,850 $ 90,345 $ 32,674 $ 13,172 $ 129,524 $ 103,517 Contributions 1,125 6,250 6,617 5,402 7,742 11,652 Earnings (loss) on equity method investments (1,282 ) 2,011 (1 ) (2 ) (1,283 ) 2,009 Balance at end of period $ 96,693 $ 98,606 $ 39,290 $ 18,572 $ 135,983 $ 117,178 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt and credit agreement components | The Company’s debt and credit agreements consisted of the following: (In thousands) March 31, December 31, 6.51% weighted-average senior notes $ 361,000 $ 361,000 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 1,528,000 1,528,000 Unamortized debt issuance costs (7,130 ) (7,470 ) $ 1,520,870 $ 1,520,530 |
Derivative Instruments and He23
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding commodity derivatives | As of March 31, 2017 , the Company had the following outstanding commodity derivatives: Collars Basis Swaps Floor Ceiling Swaps Type of Contract Volume Contract Period Range Weighted-Average Range Weighted-Average Weighted-Average Weighted-Average Natural gas 26.7 Bcf Apr. 2017 - Dec. 2017 $ 3.12 Natural gas 13.4 Bcf Apr. 2017 - Dec. 2017 $ 3.46 Natural gas 26.7 Bcf Apr. 2017 - Dec. 2017 $ — $ 3.09 $3.42-$3.45 $ 3.43 Natural gas 21.3 Bcf Jan. 2018 - Dec. 2019 $ 0.42 Crude oil 1.4 Mmbbl Apr. 2017 - Dec. 2017 $ — $ 50.00 $56.25-$56.50 $ 56.39 |
Effect of derivative instruments on the condensed consolidated balance sheet | Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet Derivative Assets Derivative Liabilities (In thousands) Balance Sheet Location March 31, December 31, March 31, December 31, Commodity contracts Other current assets $ 2,826 $ — $ — $ — Commodity contracts Other assets (non-current) 7,506 2,991 — — Commodity contracts Derivative instruments (current) — — 12,692 40,259 $ 10,332 $ 2,991 $ 12,692 $ 40,259 |
Schedule of offsetting of derivative liabilities in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In thousands) March 31, December 31, Derivative assets Gross amounts of recognized assets $ 12,354 $ 2,991 Gross amounts offset in the statement of financial position (2,022 ) — Net amounts of assets presented in the statement of financial position 10,332 2,991 Gross amounts of financial instruments not offset in the statement of financial position 51 — Net amount $ 10,383 $ 2,991 Derivative liabilities Gross amounts of recognized liabilities $ 14,714 $ 40,259 Gross amounts offset in the statement of financial position (2,022 ) — Net amounts of liabilities presented in the statement of financial position 12,692 40,259 Gross amounts of financial instruments not offset in the statement of financial position — 757 Net amount $ 12,692 $ 41,016 |
Schedule of offsetting of derivative assets in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In thousands) March 31, December 31, Derivative assets Gross amounts of recognized assets $ 12,354 $ 2,991 Gross amounts offset in the statement of financial position (2,022 ) — Net amounts of assets presented in the statement of financial position 10,332 2,991 Gross amounts of financial instruments not offset in the statement of financial position 51 — Net amount $ 10,383 $ 2,991 Derivative liabilities Gross amounts of recognized liabilities $ 14,714 $ 40,259 Gross amounts offset in the statement of financial position (2,022 ) — Net amounts of liabilities presented in the statement of financial position 12,692 40,259 Gross amounts of financial instruments not offset in the statement of financial position — 757 Net amount $ 12,692 $ 41,016 |
Effect of derivatives on the condensed consolidated statement of operations | Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations Three Months Ended (In thousands) 2017 2016 Cash received (paid) on settlement of derivative instruments Gain (loss) on derivative instruments $ (1,524 ) $ — Non-cash gain (loss) on derivative instruments Gain (loss) on derivative instruments 34,908 18,994 $ 33,384 $ 18,994 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 $ 13,566 $ — $ — $ 13,566 Derivative instruments — — 10,332 10,332 Total assets $ 13,566 $ — $ 10,332 $ 23,898 Liabilities Deferred compensation plan $ 25,420 $ — $ — $ 25,420 Derivative instruments — 7,429 5,263 12,692 Total liabilities $ 25,420 $ 7,429 $ 5,263 $ 38,112 (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 |
Reconciliation of changes in the fair value of financial assets and liabilities classified as level 3 | The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: Three Months Ended (In thousands) 2017 2016 Balance at beginning of period $ (15,868 ) $ — Total gain (loss) included in earnings 21,918 3,647 Settlement (gain) loss (981 ) — Transfers in and/or out of level 3 — — Balance at end of period $ 5,069 $ 3,647 Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ 20,937 $ 3,647 |
Carrying amounts and fair values of debt | The carrying amount and fair value of debt is as follows: March 31, 2017 December 31, 2016 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Debt $ 1,520,870 $ 1,500,879 $ 1,520,530 $ 1,463,643 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Activity Related to Asset Retirement Obligations | Activity related to the Company’s asset retirement obligations is as follows: (In thousands) Three Months Ended Balance at beginning of period $ 133,733 Liabilities incurred 702 Liabilities settled (696 ) Accretion expense 1,787 Balance at end of period $ 135,526 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The following assumptions were used to determine the grant date fair value of the equity component (February 22, 2017 ) and the period-end fair value of the liability component of the TSR Performance Share Awards: Grant Date March 31, 2017 Fair value per performance share award $ 19.85 $7.35 - $14.16 Assumptions: Stock price volatility 37.8 % 36.0% - 43.3% Risk free rate of return 1.4 % 1.0% - 1.4% |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted weighted-average shares outstanding | The following is a calculation of basic and diluted weighted-average shares outstanding: Three Months Ended (In thousands) 2017 2016 Weighted-average shares - basic 465,348 431,841 Dilution effect of stock appreciation rights and stock awards at end of period 1,540 — Weighted-average shares - diluted 466,888 431,841 |
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: Three Months Ended (In thousands) 2017 2016 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect due to net loss — 700 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method 477 28 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect 477 728 |
Additional Balance Sheet Info28
Additional Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Certain balance sheet amounts are comprised of the following: (In thousands) March 31, December 31, Accounts receivable, net Trade accounts $ 189,244 $ 185,594 Joint interest accounts 1,448 1,359 Other accounts 3,334 5,335 194,026 192,288 Allowance for doubtful accounts (1,243 ) (1,243 ) $ 192,783 $ 191,045 Inventories Tubular goods and well equipment $ 10,335 $ 11,005 Natural gas in storage 1,760 2,299 $ 12,095 $ 13,304 Other current assets Prepaid balances and other $ 1,523 $ 2,692 Derivative instruments 2,826 — $ 4,349 $ 2,692 Other assets Deferred compensation plan $ 13,566 $ 12,587 Debt issuance costs 10,554 11,403 Derivative instruments 7,506 2,991 Other accounts 106 58 $ 31,732 $ 27,039 Accounts payable Trade accounts $ 27,881 $ 27,355 Natural gas purchases 903 2,231 Royalty and other owners 92,562 85,449 Accrued capital costs 41,342 34,647 Taxes other than income 17,780 13,827 Other accounts 2,837 4,902 $ 183,305 $ 168,411 Accrued liabilities Employee benefits $ 6,746 $ 14,153 Taxes other than income 4,025 3,829 Asset retirement obligations 2,000 2,000 Other accounts 1,528 1,510 $ 14,299 $ 21,492 Other liabilities Deferred compensation plan $ 25,420 $ 24,169 Other accounts 5,381 4,952 $ 30,801 $ 29,121 |
Financial Statement Presentat29
Financial Statement Presentation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other expense | $ 424 | $ 503 | |||
Accounting Standards Update 2016-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | $ 42,200 | ||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other expense | $ 500 | $ 1,600 | $ 1,400 |
Financial Statement Presentat30
Financial Statement Presentation - Effects of New Accounting Standards on Previously Reported Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net Cash Provided by Operating Activities | $ 269,378 | $ 67,112 | ||||
Net Cash Provided by Financing Activities | $ (14,683) | 565,751 | ||||
Accounting Standards Update 2016-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net Cash Provided by Operating Activities | 67,112 | $ 152,290 | $ 257,705 | $ 398,441 | $ 749,598 | |
Net Cash Provided by Financing Activities | 565,751 | 492,428 | 463,115 | 453,805 | 223,296 | |
As Reported | Accounting Standards Update 2016-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net Cash Provided by Operating Activities | 62,090 | 147,244 | 252,649 | 392,377 | 740,737 | |
Net Cash Provided by Financing Activities | $ 570,773 | $ 497,474 | $ 468,171 | $ 458,869 | $ 232,157 |
Properties and Equipment, Net -
Properties and Equipment, Net - Schedule of PPE (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Proved oil and gas properties | $ 7,589,749 | $ 7,437,604 |
Unproved oil and gas properties | 296,279 | 260,543 |
Gathering and pipeline systems | 188,466 | 187,846 |
Land, building and other equipment | 85,257 | 84,462 |
Properties and equipment, gross, total | 8,159,751 | 7,970,455 |
Accumulated depreciation, depletion and amortization | (3,831,391) | (3,720,330) |
Properties and equipment, net | $ 4,328,360 | $ 4,250,125 |
Properties and Equipment, Net32
Properties and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 29, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Proceeds from sale of assets | $ 374 | $ 49,828 | |
Gain (loss) on sale of assets | $ (223) | $ 1,354 | |
East Texas | Oil and Gas Properties, Proved and Unproved | |||
Property, Plant and Equipment [Line Items] | |||
Proceeds from sale of assets | $ 56,400 | ||
Gain (loss) on sale of assets | $ 500 |
Equity Method Investments - Act
Equity Method Investments - Activity Related to Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Equity Method Investments | ||
Balance at beginning of period | $ 129,524 | $ 103,517 |
Contributions | 7,742 | 11,652 |
Earnings (loss) on equity method investments | (1,283) | 2,009 |
Balance at end of period | $ 135,983 | 117,178 |
Constitution | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 25.00% | |
Equity Method Investments | ||
Balance at beginning of period | $ 96,850 | 90,345 |
Contributions | 1,125 | 6,250 |
Earnings (loss) on equity method investments | (1,282) | 2,011 |
Balance at end of period | 96,693 | 98,606 |
Contributions to date | $ 89,700 | |
Meade | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 20.00% | |
Equity Method Investments | ||
Balance at beginning of period | $ 32,674 | 13,172 |
Contributions | 6,617 | 5,402 |
Earnings (loss) on equity method investments | (1) | (2) |
Balance at end of period | 39,290 | $ 18,572 |
Investment Commitment | ||
Equity Method Investments | ||
Expected future contributions | 70,000 | |
Investment Commitment | Constitution | ||
Equity Method Investments | ||
Anticipated contributions | $ 240,000 |
Debt and Credit Agreements - Sc
Debt and Credit Agreements - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt including unamortized debt issuance costs | $ 1,528,000 | $ 1,528,000 |
Unamortized debt issuance costs | (7,130) | (7,470) |
Debt, net | 1,520,870 | 1,520,530 |
6.51% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt including unamortized debt issuance costs | $ 361,000 | $ 361,000 |
Weighted average interest rate | 6.51% | 6.51% |
9.78% senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt including unamortized debt issuance costs | $ 67,000 | $ 67,000 |
Long-term debt, interest rate, stated percentage | 9.78% | 9.78% |
5.58% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt including unamortized debt issuance costs | $ 175,000 | $ 175,000 |
Weighted average interest rate | 5.58% | 5.58% |
3.65% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt including unamortized debt issuance costs | $ 925,000 | $ 925,000 |
Weighted average interest rate | 3.65% | 3.65% |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Apr. 11, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Change in interest rate during period | 0.00% | |||
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Remaining borrowing capacity | $ 1,700,000,000 | |||
Line of credit | $ 0 | |||
Interest rate | 2.30% | |||
6.51% weighted-average senior notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 6.51% | 6.51% | ||
Senior Notes | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Remaining borrowing capacity | $ 1,700,000,000 | |||
Subsequent Event | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing base | $ 3,200,000,000 |
Derivative Instruments and He36
Derivative Instruments and Hedging Activities - Outstanding Commodity Derivatives (Details) bbl in Millions, Mcf in Millions | 3 Months Ended |
Mar. 31, 2017$ / bbl$ / McfMcfbbl | |
Natural Gas Swap With Contract Period of April 2017 to December 2017 | |
Derivative [Line Items] | |
Volume (in mmcf for gas and mbbls for oil) | Mcf | 26.7 |
Swaps Weighted Average (in usd per Mcf or usd per bbl) | 3.12 |
Natural Gas Swap With Contract Period of April 2017 to December 2017 | |
Derivative [Line Items] | |
Volume (in mmcf for gas and mbbls for oil) | Mcf | 13.4 |
Swaps Weighted Average (in usd per Mcf or usd per bbl) | 3.46 |
Natural Gas Collar With Contract Period of April 2017 to December 2017 | |
Derivative [Line Items] | |
Volume (in mmcf for gas and mbbls for oil) | Mcf | 26.7 |
Natural Gas Collar With Contract Period of April 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 April 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 April 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 July 2017 to December 2017 | |
Derivative [Line Items] | |
Volume (in mmcf for gas and mbbls for oil) | bbl | 1.4 |
Crude Oil Collar With Contract Period Of July 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 July 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 July 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 He37
Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | $ 10,332 | $ 2,991 |
Derivative Liabilities | 12,692 | 40,259 |
Other current assets | Derivatives Not Designated as Hedges | Commodity contracts | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | 2,826 | 0 |
Derivative Liabilities | 0 | 0 |
Other assets (non-current) | Derivatives Not Designated as Hedges | Commodity contracts | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | 7,506 | 2,991 |
Derivative Liabilities | 0 | 0 |
Derivative instruments (current) | Derivatives Not Designated as Hedges | Commodity contracts | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 12,692 | $ 40,259 |
Derivative Instruments and He38
Derivative Instruments and Hedging Activities - Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative assets | ||
Gross amounts of recognized assets | $ 12,354 | $ 2,991 |
Gross amounts offset in the statement of financial position | 2,022 | 0 |
Net amounts of assets presented in the statement of financial position | 10,332 | 2,991 |
Gross amounts of financial instruments not offset in the statement of financial position | 51 | 0 |
Net amount | 10,383 | 2,991 |
Derivative liabilities | ||
Gross amounts of recognized liabilities | 14,714 | 40,259 |
Gross amounts offset in the statement of financial position | (2,022) | 0 |
Net amounts of liabilities presented in the statement of financial position | 12,692 | 40,259 |
Gross amounts of financial instruments not offset in the statement of financial position | 0 | 757 |
Net amount | $ 12,692 | $ 41,016 |
Derivative Instruments and He39
Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative instruments and hedging activities | ||
Gain on derivative instruments | $ 33,384 | $ 18,994 |
Derivatives Not Designated as Hedges | Gain (loss) on derivative instruments | ||
Derivative instruments and hedging activities | ||
Gain on derivative instruments | (1,524) | 0 |
Non-cash gain (loss) on derivative instruments | $ 34,908 | $ 18,994 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities, Recurring (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Deferred compensation plan | $ 13,566 | $ 12,587 |
Derivative instruments | 12,354 | 2,991 |
Liabilities | ||
Deferred compensation plan | 25,420 | 24,169 |
Derivative instruments | 12,692 | 40,259 |
Recurring basis | ||
Assets | ||
Deferred compensation plan | 13,566 | 12,587 |
Derivative instruments | 10,332 | 2,991 |
Total assets | 23,898 | 15,578 |
Liabilities | ||
Deferred compensation plan | 25,420 | 24,169 |
Derivative instruments | 12,692 | 40,259 |
Total liabilities | 38,112 | 64,428 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis | ||
Assets | ||
Deferred compensation plan | 13,566 | 12,587 |
Derivative instruments | 0 | 0 |
Total assets | 13,566 | 12,587 |
Liabilities | ||
Deferred compensation plan | 25,420 | 24,169 |
Derivative instruments | 0 | 0 |
Total liabilities | 25,420 | 24,169 |
Significant Other Observable Inputs (Level 2) | Recurring basis | ||
Assets | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 7,429 | 21,400 |
Total liabilities | 7,429 | 21,400 |
Significant Unobservable Inputs (Level 3) | Recurring basis | ||
Assets | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 10,332 | 2,991 |
Total assets | 10,332 | 2,991 |
Liabilities | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 5,263 | 18,859 |
Total liabilities | $ 5,263 | $ 18,859 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Changes in Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
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 | $ (15,868) | $ 0 |
Total gain (loss) included in earnings | 21,918 | 3,647 |
Settlement (gain) loss | (981) | 0 |
Transfers in and/or out of level 3 | 0 | 0 |
Balance at end of period | 5,069 | 3,647 |
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period | $ 20,937 | $ 3,647 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($)impaired_asset_and_liability | Dec. 31, 2016USD ($)impaired_asset_and_liability | |
Fair Value Disclosures [Abstract] | ||
Fair value assets, level 1 to level 2 | $ 0 | $ 0 |
Fair value liabilities, level 1 to level 2 | 0 | 0 |
Fair value assets, level 2 to level 1 | 0 | 0 |
Fair value liabilities, level 2 to level 1 | $ 0 | $ 0 |
Number of non-financial assets and liabilities impaired | impaired_asset_and_liability | 0 | 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Other Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair value disclosures | ||
Debt | $ 1,520,870 | $ 1,520,530 |
Carrying amount | ||
Fair value disclosures | ||
Debt | 1,520,870 | 1,520,530 |
Estimated fair value | ||
Fair value disclosures | ||
Debt | $ 1,500,879 | $ 1,463,643 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of ARO (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Asset Retirement Obligation | |
Balance at beginning of period | $ 133,733 |
Liabilities incurred | 702 |
Liabilities settled | (696) |
Accretion expense | 1,787 |
Balance at end of period | $ 135,526 |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 02, 2016 | Feb. 26, 2016 | Feb. 22, 2016 | Mar. 31, 2017 | Mar. 31, 2016 |
Equity [Abstract] | |||||
Shares issued during period (in shares) | 6,600,000 | 44,000,000 | |||
Price of share sold (in USD per share) | $ 19.675 | ||||
Sale of common stock, net | $ 129,900 | $ 865,700 | $ 0 | $ 995,278 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) | Feb. 17, 2016 | Mar. 31, 2017 | Mar. 31, 2016 |
Stock-based Compensation arrangements | |||
Stock based compensation expense | $ 8,300,000 | $ 10,600,000 | |
Increase in deferred tax expense | $ 800,000 | ||
Tax deficiency on share-based compensation | $ 2,000,000 | ||
Restricted Stock Units | |||
Stock-based Compensation arrangements | |||
Granted (in shares) | 46,618 | ||
Granted (in dollars per share) | $ 22.57 | ||
Performance Share Awards | Minimum | |||
Stock-based Compensation arrangements | |||
Annual forfeiture rate assumption (as a percent) | 0.00% | ||
Performance Share Awards | Maximum | |||
Stock-based Compensation arrangements | |||
Annual forfeiture rate assumption (as a percent) | 6.00% | ||
Performance Share Awards Based on Internal Performance Metrics | |||
Stock-based Compensation arrangements | |||
Right to receive additional shares, maximum (as a percent) | 100.00% | ||
Employee Performance Share Awards | |||
Stock-based Compensation arrangements | |||
Granted (in shares) | 406,460 | ||
Granted (in dollars per share) | $ 22.60 | ||
Number of years over which performance criteria is to be met | 3 years | ||
Hybrid Performance Share Awards | |||
Stock-based Compensation arrangements | |||
Granted (in shares) | 272,920 | ||
Granted (in dollars per share) | $ 22.60 | ||
Minimum operating cash flow for the year preceding the performance period | $ 100,000,000 | ||
Hybrid Performance Share Awards | Hybrid performance share awards, percentage vesting on the first anniversary | |||
Stock-based Compensation arrangements | |||
Award vesting rights, percentage | 25.00% | ||
Hybrid Performance Share Awards | Hybrid performance share awards, percentage vesting on the second anniversary | |||
Stock-based Compensation arrangements | |||
Award vesting rights, percentage | 25.00% | ||
Hybrid Performance Share Awards | Hybrid performance share awards, percentage vesting on the third anniversary | |||
Stock-based Compensation arrangements | |||
Award vesting rights, percentage | 50.00% | ||
Performance Shares Based on Market Conditions | |||
Stock-based Compensation arrangements | |||
Right to receive shares (as a percent) | 100.00% | ||
Right to receive an additional award in cash (as a percent) | 100.00% | ||
TSR Performance Share Awards | |||
Stock-based Compensation arrangements | |||
Granted (in shares) | 409,380 | ||
Granted (in dollars per share) | $ 19.85 | ||
Performance period | 3 years | ||
TSR Performance Share Awards | Minimum | |||
Stock-based Compensation arrangements | |||
Granted (in dollars per share) | $ 7.35 | ||
TSR Performance Share Awards | Maximum | |||
Stock-based Compensation arrangements | |||
Granted (in dollars per share) | $ 14.16 |
Stock-based Compensation - Assu
Stock-based Compensation - Assumptions for TSR Shares (Details) - TSR Performance Share Awards - $ / shares | Feb. 17, 2016 | Mar. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in dollars per share) | $ 19.85 | |
Stock price volatility | 37.80% | |
Risk free rate of return | 1.40% | |
Minimum expected volatility | 36.00% | |
Maximum expected volatility | 43.30% | |
Minimum risk free interest rate | 1.00% | |
Maximum risk free interest rate | 1.40% | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in dollars per share) | $ 7.35 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in dollars per share) | $ 14.16 |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of EPS (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Weighted-average shares - basic (in shares) | 465,348 | 431,841 |
Dilution effect of stock appreciation rights and stock awards at end of period (in shares) | 1,540 | 0 |
Weighted-average shares - diluted (in shares) | 466,888 | 431,841 |
Earnings per Common Share - Cal
Earnings per Common Share - Calculation of Weighted-Average Shares Excluded from Diluted EPS (Details) - Stock appreciation rights and stock awards - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
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 | 0 | 700 |
Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method | 477 | 28 |
Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect | 477 | 728 |
Additional Balance Sheet Info50
Additional Balance Sheet Information - Schedule of Additional Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts receivable, net | ||
Trade accounts | $ 189,244 | $ 185,594 |
Joint interest accounts | 1,448 | 1,359 |
Other accounts | 3,334 | 5,335 |
Accounts receivable, net | 194,026 | 192,288 |
Allowance for doubtful accounts | (1,243) | (1,243) |
Accounts receivable, net | 192,783 | 191,045 |
Inventories | ||
Tubular goods and well equipment | 10,335 | 11,005 |
Natural gas in storage | 1,760 | 2,299 |
Inventories | 12,095 | 13,304 |
Other current assets | ||
Prepaid balances and other | 1,523 | 2,692 |
Derivative instruments | 2,826 | 0 |
Other current assets | 4,349 | 2,692 |
Other assets | ||
Deferred compensation plan | 13,566 | 12,587 |
Debt issuance costs | 10,554 | 11,403 |
Derivative instruments | 7,506 | 2,991 |
Other accounts | 106 | 58 |
Other assets | 31,732 | 27,039 |
Accounts payable | ||
Trade accounts | 27,881 | 27,355 |
Natural gas purchases | 903 | 2,231 |
Royalty and other owners | 92,562 | 85,449 |
Accrued capital costs | 41,342 | 34,647 |
Taxes other than income | 17,780 | 13,827 |
Other accounts | 2,837 | 4,902 |
Accounts payable current | 183,305 | 168,411 |
Accrued liabilities | ||
Employee benefits | 6,746 | 14,153 |
Taxes other than income | 4,025 | 3,829 |
Asset retirement obligations | 2,000 | 2,000 |
Other accounts | 1,528 | 1,510 |
Accrued liabilities | 14,299 | 21,492 |
Other liabilities | ||
Deferred compensation plan | 25,420 | 24,169 |
Other accounts | 5,381 | 4,952 |
Other liabilities | $ 30,801 | $ 29,121 |