Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 20, 2019 | Jun. 30, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | CABOT OIL & GAS CORP | ||
Entity Central Index Key | 858,470 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 423,367,250 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10.3 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 2,287 | $ 480,047 |
Accounts receivable, net | 362,403 | 216,004 |
Income taxes receivable | 109,251 | 56,666 |
Inventories | 11,076 | 8,006 |
Derivative instruments | 57,665 | 0 |
Current assets held for sale | 0 | 1,440 |
Other current assets | 1,863 | 2,794 |
Total current assets | 544,545 | 764,957 |
Properties and equipment, net (Successful efforts method) | 3,463,606 | 3,072,204 |
Equity method investments | 163,181 | 86,077 |
Assets held for sale | 0 | 778,855 |
Derivative instruments | 0 | 2,239 |
Other assets | 27,497 | 23,012 |
TOTAL ASSETS | 4,198,829 | 4,727,344 |
Current liabilities | ||
Accounts payable | 241,939 | 238,045 |
Current portion of long-term debt | 0 | 304,000 |
Accrued liabilities | 25,227 | 27,441 |
Interest payable | 20,098 | 27,575 |
Derivative instruments | 0 | 30,637 |
Current liabilities held for sale | 0 | 2,352 |
Total current liabilities | 287,264 | 630,050 |
Long-term debt, net | 1,226,104 | 1,217,891 |
Deferred income taxes | 458,597 | 227,030 |
Asset retirement obligations | 50,622 | 43,601 |
Liabilities held for sale | 0 | 15,748 |
Postretirement benefits | 27,912 | 29,396 |
Other liabilities | 60,171 | 39,723 |
Total liabilities | 2,110,670 | 2,203,439 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock | 47,610 | 47,555 |
Additional paid-in capital | 1,763,142 | 1,742,419 |
Retained earnings | 1,607,658 | 1,162,430 |
Accumulated other comprehensive income | 4,437 | 2,077 |
Treasury stock | (1,334,688) | (430,576) |
Total stockholders' equity | 2,088,159 | 2,523,905 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,198,829 | $ 4,727,344 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, authorized (in shares) | 960,000,000 | 960,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, issued (in shares) | 476,094,551 | 475,547,419 |
Treasury stock (in shares) | 53,409,705 | 14,935,926 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING REVENUES | |||
Operating revenue | $ 2,143,716 | $ 1,747,293 | $ 1,194,627 |
Gain (loss) on derivative instruments | 44,432 | 16,926 | (38,950) |
TOTAL OPERATING REVENUES | 2,188,148 | 1,764,219 | 1,155,677 |
OPERATING EXPENSES | |||
Direct operations | 69,646 | 102,310 | 100,696 |
Taxes other than income | 22,642 | 33,487 | 29,223 |
Exploration | 113,820 | 21,526 | 27,662 |
Depreciation, depletion and amortization | 417,479 | 568,817 | 590,128 |
Impairment of oil and gas properties | 0 | 482,811 | 435,619 |
General and administrative | 96,641 | 97,786 | 85,633 |
TOTAL OPERATING EXPENSES | 1,401,157 | 1,803,428 | 1,716,288 |
Earnings (loss) on equity method investments | 1,137 | (100,486) | (2,477) |
Loss on sale of assets | (16,327) | (11,565) | (1,857) |
INCOME (LOSS) FROM OPERATIONS | 771,801 | (151,260) | (564,945) |
Interest expense, net | 73,201 | 82,130 | 88,336 |
Loss on debt extinguishment | 0 | 0 | 4,709 |
Other expense (income) | 463 | (4,955) | 1,609 |
Income (loss) before income taxes | 698,137 | (228,435) | (659,599) |
Income tax expense (benefit) | 141,094 | (328,828) | (242,475) |
NET INCOME (LOSS) | $ 557,043 | $ 100,393 | $ (417,124) |
Earnings (loss) per share | |||
Basic (in dollars per share) | $ 1.25 | $ 0.22 | $ (0.91) |
Diluted (in dollars per share) | $ 1.24 | $ 0.22 | $ (0.91) |
Weighted-average common shares outstanding | |||
Basic (in shares) | 445,538 | 463,735 | 456,847 |
Diluted (in shares) | 447,568 | 465,551 | 456,847 |
Dividends per common share (in dollars per share) | $ 0.25 | $ 0.17 | $ 0.08 |
Natural gas | |||
OPERATING REVENUES | |||
Operating revenue | $ 1,881,150 | $ 1,506,078 | $ 1,022,590 |
Crude oil and condensate | |||
OPERATING REVENUES | |||
Operating revenue | 48,722 | 212,338 | 151,106 |
Brokered natural gas | |||
OPERATING REVENUES | |||
Operating revenue | 209,530 | 17,217 | 13,569 |
OPERATING EXPENSES | |||
Operating expenses | 184,198 | 15,252 | 10,785 |
Other | |||
OPERATING REVENUES | |||
Operating revenue | 4,314 | 11,660 | 7,362 |
Transportation and gathering | |||
OPERATING EXPENSES | |||
Operating expenses | $ 496,731 | $ 481,439 | $ 436,542 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 557,043 | $ 100,393 | $ (417,124) | |
Postretirement benefits: | ||||
Net gain (loss) | [1] | 2,461 | (2,634) | 1,794 |
Prior service credit (cost) | [2] | 0 | 5,449 | (514) |
Amortization of prior service cost | [3] | (547) | (1,723) | 70 |
Cumulative effect of adoption of ASU 2018-02 reclassified to retained earnings | 446 | 0 | 0 | |
Total other comprehensive income | 2,360 | 1,092 | 1,350 | |
Comprehensive income (loss) | $ 559,403 | $ 101,485 | $ (415,774) | |
[1] | Net of income taxes of $(704), $1,544 and $(1,052) for the year ended December 31, 2018, 2017 and 2016, respectively. | |||
[2] | Net of income taxes of $0, $(3,194) and $301 for the year ended December 31, 2018, 2017 and 2016, respectively. | |||
[3] | Net of income taxes of $162, $1,010 and $(41) for the year ended December 31, 2018, 2017 and 2016, respectively. |
CONSOLIDATED STATEMENT OF COM_2
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Postretirement benefits: | |||
Net gain / (loss), income taxes | $ (704) | $ 1,544 | $ (1,052) |
Prior service cost, income taxes | 0 | (3,194) | 301 |
Amortization of prior service cost, income taxes | $ 162 | $ 1,010 | $ (41) |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 557,043 | $ 100,393 | $ (417,124) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depreciation, depletion and amortization | 417,479 | 568,817 | 590,128 |
Impairment of oil and gas properties | 0 | 482,811 | 435,619 |
Deferred income tax expense (benefit) | 229,603 | (321,113) | (230,707) |
Loss on sale of assets | 16,327 | 11,565 | 1,857 |
Exploratory dry hole cost | 97,741 | 3,820 | 10,120 |
(Gain) loss on derivative instruments | (44,432) | (16,926) | 38,950 |
Net cash received (paid) in settlement of derivative instruments | (41,631) | 8,056 | (1,682) |
(Earnings) loss on equity method investments | (1,137) | 100,486 | 2,477 |
Distribution of earnings from equity method investments | 1,296 | 0 | 0 |
Amortization of debt issuance costs | 4,631 | 4,774 | 5,083 |
Stock-based compensation and other | 31,443 | 33,419 | 25,982 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (146,921) | (25,036) | (71,060) |
Income taxes | (59,616) | (46,368) | (5,975) |
Inventories | (3,927) | 1,334 | 3,044 |
Other current assets | 934 | (104) | (21) |
Accounts payable and accrued liabilities | 30,468 | (2,552) | 10,858 |
Interest payable | (7,477) | (75) | (2,573) |
Other assets and liabilities | 23,079 | (5,141) | 2,465 |
Net cash provided by operating activities | 1,104,903 | 898,160 | 397,441 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | (894,470) | (764,558) | (375,153) |
Proceeds from sale of assets | 678,350 | 115,444 | 50,419 |
Investment in equity method investments | (77,263) | (57,039) | (28,484) |
Net cash used in investing activities | (293,383) | (706,153) | (353,218) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Borrowings from debt | 158,000 | 0 | 90,000 |
Repayments of debt | (455,000) | 0 | (587,000) |
Treasury stock repurchases | (872,761) | (123,741) | 0 |
Sale of common stock, net | 0 | 0 | 995,279 |
Dividends paid | (111,369) | (78,838) | (36,187) |
Tax withholding on vesting of stock awards | (8,150) | (7,973) | (5,064) |
Capitalized debt issuance costs | 0 | 0 | (3,223) |
Other | 0 | 50 | 0 |
Net cash (used in) provided by financing activities | (1,289,280) | (210,502) | 453,805 |
Net (decrease) increase in cash and cash equivalents | (477,760) | (18,495) | 498,028 |
Cash and cash equivalents, beginning of period | 480,047 | 498,542 | 514 |
Cash and cash equivalents, end of period | $ 2,287 | $ 480,047 | $ 498,542 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at beginning of period at Dec. 31, 2015 | $ 2,009,188 | $ 42,377 | $ (306,835) | $ 721,997 | $ (365) | $ 1,552,014 |
Balance (in shares) at Dec. 31, 2015 | 423,769 | 9,893 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (417,124) | (417,124) | ||||
Issuance of common stock | 995,289 | $ 5,060 | 990,229 | |||
Issuance of common stock (in shares) | 50,600 | |||||
Exercise of stock appreciation rights | (198) | $ 3 | (201) | |||
Exercise of stock appreciation rights (in shares) | 28 | |||||
Stock amortization and vesting | 16,931 | $ 64 | 16,867 | |||
Stock amortization and vesting (in shares) | 646 | |||||
Sale of stock held in rabbi trust | 544 | 544 | ||||
Stock-based compensation | (2,126) | (2,126) | ||||
Cash dividends | (36,187) | (36,187) | ||||
Other comprehensive income | 1,350 | 1,350 | ||||
Balance at end of period at Dec. 31, 2016 | 2,567,667 | $ 47,504 | $ (306,835) | 1,727,310 | 985 | 1,098,703 |
Balance (in shares) at Dec. 31, 2016 | 475,043 | 9,893 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Cumulative impact from accounting change | 42,172 | 42,172 | ||||
Net income (loss) | 100,393 | 100,393 | ||||
Exercise of stock appreciation rights | 0 | $ 14 | (14) | |||
Exercise of stock appreciation rights (in shares) | 137 | |||||
Stock amortization and vesting | 15,160 | $ 37 | 15,123 | |||
Stock amortization and vesting (in shares) | 367 | |||||
Cash dividends | (78,838) | (78,838) | ||||
Purchase of treasury stock | (123,741) | $ (123,741) | ||||
Purchase of treasury stock (in shares) | 5,043 | |||||
Other comprehensive income | 1,092 | 1,092 | ||||
Balance at end of period at Dec. 31, 2017 | 2,523,905 | $ 47,555 | $ (430,576) | 1,742,419 | 2,077 | 1,162,430 |
Balance (in shares) at Dec. 31, 2017 | 475,547 | 14,936 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 557,043 | 557,043 | ||||
Exercise of stock appreciation rights | 0 | $ 1 | (1) | |||
Exercise of stock appreciation rights (in shares) | 9 | |||||
Stock amortization and vesting | 20,778 | $ 54 | 20,724 | |||
Stock amortization and vesting (in shares) | 539 | |||||
Cash dividends | (111,369) | (111,369) | ||||
Purchase of treasury stock | (904,112) | $ (904,112) | ||||
Purchase of treasury stock (in shares) | 38,474 | |||||
Other comprehensive income | 2,360 | 2,360 | ||||
Cumulative impact from accounting change | (446) | (446) | ||||
Balance at end of period at Dec. 31, 2018 | $ 2,088,159 | $ 47,610 | $ (1,334,688) | $ 1,763,142 | $ 4,437 | $ 1,607,658 |
Balance (in shares) at Dec. 31, 2018 | 476,095 | 53,410 |
CONSOLIDATED STATEMENT OF STO_2
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Dec. 31, 2017 | Oct. 31, 2018 | Jan. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Stockholders' Equity [Abstract] | |||||||
Cash dividends, per share (in dollars per share) | $ 0.05 | $ 0.07 | $ 0.06 | $ 0.06 | $ 0.25 | $ 0.17 | $ 0.08 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Nature of Operations Cabot Oil & Gas Corporation and its subsidiaries (the Company) are engaged in the development, exploitation, exploration, production and marketing of natural gas, and to a lesser extent oil and NGLs, exclusively within the continental United States. The Company's exploration and development activities are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. The Company operates in one segment, natural gas and oil development, exploitation, exploration and production. The Company's oil and gas properties are managed as a whole rather than through discrete operating segments or business units. Operational information is tracked by geographic area; however, financial performance is assessed as a single enterprise and not on a geographic basis. Allocation of resources is made on a project basis across the Company's entire portfolio without regard to geographic areas. The consolidated financial statements include the accounts of the Company and its subsidiaries after eliminating all significant intercompany balances and transactions. Certain reclassifications have been made to prior year statements to conform with the current year presentation. These reclassifications have no impact on previously reported stockholders' equity, net income (loss) or cash flows. Recently Adopted Accounting Pronouncements Revenue Recognition. In May 2014, the Financial Accounting Standards Boards (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Accounting Standards Codification (ASC) 606, as subsequently amended). ASC 606 supersedes the revenue recognition requirements in Topic 605 Revenue Recognition (ASC 605), and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASC 606 as of January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 also included the adoption and modification of other guidance, particularly the creation of ASC 340-40 on costs to obtain or fulfill contracts with customers and ASC 610-20 on gains or losses on derecognition of nonfinancial assets. ASC 340-40 provides additional capitalization, amortization and impairment guidance for certain costs associated with obtaining or fulfilling contracts subject to ASC 606. ASC 610-20 provides guidance on the measurement and recognition of gains and losses for disposals of assets that are not the outputs of ordinary activities, such as sales of fixed assets, when they are not businesses or deconsolidation of subsidiaries. The guidance in ASC 610-20 largely aligns with the guidance in ASC 606. It also supersedes most guidance on real estate sales that was contained in ASC 360-20; however, it does not apply to conveyances of oil and gas interests, which continue to be governed by guidance in ASC 932 for oil and gas extractive activities. There was no material effect from the adoption of ASC 340-40 or ASC 610-20 separate from those discussed from the adoption of ASC 606. 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 Company adopted ASU 2016-01 as of January 1, 2018. The adoption of this guidance did not have a material effect on the Company's financial position, results of operation 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 accounting guidance is either unclear or does not include specific guidance. The Company adopted this guidance effective January 1, 2018. In conjunction with the adoption, the Company made an accounting policy election to classify distributions it receives from its equity method investees using the cumulative earnings approach in which distributions received are classified as a return on investment (cash inflows from operating activities) unless the investor's cumulative distributions received less distributions received in prior periods that were determined to be returns of investment exceed cumulative equity in earnings recognized by the investor. When such an excess occurs, the current-period distribution up to this excess should be considered a return of investment (cash inflows from investing activities). The adoption of this guidance did not have a material effect on the Company's cash flows. Accumulated Other Comprehensive Income . In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which provides for the reclassification of the stranded tax effect of remeasuring deferred tax balances related to items within accumulated other comprehensive income (AOCI) to retained earnings from the U.S. enacted tax legislation referred to as the Tax Cuts and Jobs Act (the Tax Act). The amendment also includes disclosure requirements regarding an entity's accounting policy for releasing income tax effects from AOCI. The Company elected to early adopt this guidance as of January 1, 2018. The Company had $0.4 million of net stranded income tax effects in AOCI within the Consolidated Balance Sheet as a result of the lower U.S. federal corporate tax rate due to the enactment of the Tax Act. The net amount of stranded income tax effects within AOCI was determined under the portfolio approach and was derived from the deferred tax balances on the Company's post-retirement benefit plan. The adoption of the guidance resulted in the transfer of $0.4 million of net stranded income tax effects out of AOCI and into retained earnings with no impact to total stockholders' equity or results of operations. Recently Issued Accounting Pronouncements Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new lease guidance supersedes Topic 840. The core principle of the guidance is that entities 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. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides entities with an optional transition method that permits an entity to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. 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 plans to adopt this guidance effective January 1, 2019 by applying the optional transition approach as of the beginning of the period of adoption. Comparative periods, including the disclosures related to those periods, will not be restated. The Company plans to make use of the following practical expedients which are provided in the leases standard: • an election not to apply the recognition requirements in the leases standard to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that the Company is reasonably certain to exercise); • a package of practical expedients to not reassess whether a contract is or contains a lease, lease classification and initial direct costs; • a practical expedient to use hindsight when determining the lease term; • a practical expedient that permits combining lease and non-lease components in a contract and accounting for the combination as a lease (elected by asset class); and • a practical expedient to not reassess certain land easements in existence prior to January 1, 2019. On the adoption date, the Company expects to recognize a right of use asset for operating leases and an operating lease liability of between $40.0 million and $60.0 million , representing the present value of the minimum payment obligations associated with office leases, drilling rig commitments, surface use agreements and other leases. The Company does not expect the adoption of this guidance to have a material effect on its results of operations or cash flows. Significant Accounting Policies Cash and Cash Equivalents The Company considers all highly liquid short-term investments with a maturity of three months or less and deposits in money market funds that are readily convertible to cash to be cash equivalents. Cash and cash equivalents were primarily concentrated in one financial institution at December 31, 2018 . The Company periodically assesses the financial condition of its financial institutions and considers any possible credit risk to be minimal. Allowance for Doubtful Accounts The Company records an allowance for doubtful accounts for receivables that the Company determines to be uncollectible based on the specific identification method. Inventories Inventories are comprised of tubular goods and well equipment and are carried at average cost. Equity Method Investments The Company accounts for its investments in entities over which the Company has significant influence, but not control, using the equity method of accounting. Under the equity method of accounting, the Company increases its investment for contributions made and records its proportionate share of net earnings, declared dividends and partnership distributions based on the most recently available financial statements of the investee. The Company records the activity for its equity method investments on a one month lag. In addition, the Company evaluates its equity method investments for potential impairment whenever events or changes in circumstances indicate that there is a decline in the value of the investment. Properties and Equipment The Company uses the successful efforts method of accounting for oil and gas producing activities. Under this method, acquisition costs for proved and unproved properties are capitalized when incurred. Exploration costs, including geological and geophysical costs, the costs of carrying and retaining unproved properties and exploratory dry hole drilling costs, are expensed. Development costs, including the costs to drill and equip development wells and successful exploratory drilling costs to locate proved reserves are capitalized. Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves. The determination is based on a process which relies on interpretations of available geologic, geophysical, and engineering data. If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well. If a well is determined to be unsuccessful, the capitalized drilling costs will be charged to exploration expense in the Consolidated Statement of Operations in the period the determination is made. If an exploratory well requires a major capital expenditure before production can begin, the cost of drilling the exploratory well will continue to be carried as an asset pending determination of whether reserves have been found only as long as: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well if the required capital expenditure is made and (ii) drilling of an additional exploratory well is under way or firmly planned for the near future. If drilling in the area is not under way or firmly planned, or if the well has not found a commercially producible quantity of reserves, the exploratory well is assumed to be impaired and its costs are charged to exploration expense. Development costs of proved oil and gas properties, including estimated dismantlement, restoration and abandonment costs and acquisition costs, are depreciated and depleted on a field basis by the units-of-production method using proved developed and proved reserves, respectively. Properties related to gathering and pipeline systems and equipment are depreciated using the straight-line method based on estimated useful lives ranging from 10 to 25 years. Buildings are depreciated on a straight-line basis over 25 to 40 years. Certain other assets are depreciated on a straight-line basis over 3 to 10 years. Costs of sold or abandoned properties that make up a part of an amortization base (partial field) remain in the amortization base if the units-of-production rate is not significantly affected. If significant, a gain or loss, if any, is recognized and the sold or abandoned properties are retired. A gain or loss, if any, is also recognized when a group of proved properties (entire field) that make up the amortization base has been retired, abandoned or sold. The Company evaluates its proved oil and gas properties for impairment whenever events or changes in circumstances indicate an asset's carrying amount may not be recoverable. The Company compares expected undiscounted future cash flows to the net book value of the asset. If the future undiscounted expected cash flows, based on estimates of future commodity prices, operating costs and anticipated production from proved reserves and risk-adjusted probable and possible reserves, are lower than the net book value of the asset, the capitalized cost is reduced to fair value. Commodity pricing is estimated by using a combination of assumptions management uses in its budgeting and forecasting process as well as historical and current prices adjusted for geographical location and quality differentials, as well as other factors that management believes will impact realizable prices. Fair value is calculated by discounting the future cash flows. The discount factor used is based on rates utilized by market participants that are commensurate with the risks inherent in the development and production of the underlying natural gas and oil. Unproved oil and gas properties are assessed periodically for impairment on an aggregate basis through periodic updates to the Company's undeveloped acreage amortization based on past drilling and exploration experience, the Company's expectation of converting leases to held by production and average property lives. Average property lives are determined on a geographical basis and based on the estimated life of unproved property leasehold rights. During 2018 , 2017 and 2016 , amortization associated with the Company's unproved properties was $82.3 million , $52.8 million and $25.0 million , respectively, and is included in depreciation, depletion, and amortization in the Consolidated Statement of Operations. Asset Retirement Obligations The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset. The asset retirement costs are depreciated using the units-of-production method. At December 31, 2018 , there were no assets legally restricted for purposes of settling asset retirement obligations. Additional retirement obligations increase the liability associated with new oil and gas wells and other facilities as these obligations are incurred. Accretion expense is included in depreciation, depletion and amortization expense in the Consolidated Statement of Operations. Derivative Instruments The Company enters into financial derivative contracts, primarily swaps, collars and basis swaps, to manage its exposure to price fluctuations on a portion of its anticipated future production volumes. The Company’s credit agreement restricts the ability of the Company to enter into commodity derivatives other than to hedge or mitigate risks to which the Company has actual or projected exposure or as permitted under the Company’s risk management policies and where such derivatives do not subject the Company to material speculative risks. All of the Company’s derivatives are used for risk management purposes and are not held for trading purposes. We have elected not to designate our financial derivative instruments as accounting hedges under the accounting guidance. The Company evaluates all of its physical purchase and sale contracts to determine if they meet the definition of a derivative. For contracts that meet the definition of a derivative, the Company may elect the normal purchase normal sale (NPNS) exception provided under the accounting guidance and account for the contract using the accrual method of accounting. Contracts that do not qualify for or for which the Company elects not to apply the NPNS exception are accounted for at fair value. All derivatives, except for derivatives that qualify for the NPNS exception, are recognized on the balance sheet and are measured at fair value. At the end of each quarterly period, these derivatives are marked to market. As a result, changes in the fair value of derivatives are recognized in operating revenues in gain (loss) on derivative instruments. The resulting cash flows are reported as cash flows from operating activities. Fair Value of Assets and Liabilities The Company follows the authoritative accounting guidance for measuring fair value of assets and liabilities in its financial statements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. The Company is able to classify fair value balances based on the observability of these inputs. The authoritative guidance for fair value measurements establishes three levels of the fair value hierarchy, defined as follows: • Level 1: Unadjusted, quoted prices for identical assets or liabilities in active markets. • Level 2: Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly for substantially the full term of the asset or liability. • Level 3: Significant, unobservable inputs for use when little or no market data exists, requiring a significant degree of judgment. The hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. Depending on the particular asset or liability, input availability can vary depending on factors such as product type, longevity of a product in the market and other particular transaction conditions. In some cases, certain inputs used to measure fair value may be categorized into different levels of the fair value hierarchy. For disclosure purposes under the accounting guidance, the lowest level that contains significant inputs used in the valuation should be chosen. Revenue Recognition On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers, and the related guidance in ASC 340-40 (the new revenue standard), and related guidance on gains and losses on derecognition of nonfinancial assets ASC 610-20, using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Under the modified retrospective method, the Company recognizes the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings; however, no significant adjustment was required as a result of adopting the new revenue standard. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard. The comparative information has not been restated and continues to be reported under the historic accounting standards in effect for those periods. The impact of the adoption of the new revenue standard is expected to be immaterial to the Company’s net income on an ongoing basis. The Company’s revenue is typically generated from contracts to sell natural gas, crude oil or NGLs produced from interests in oil and gas properties owned by the Company. These contracts generally require the Company to deliver a specific amount of a commodity per day for a specified number of days at a price that is either fixed or variable. The contracts specify a delivery point which represents the point at which control of the product is transferred to the customer. These contracts frequently meet the definition of a derivative under ASC 815, and are accounted for as derivatives unless the Company elects to treat them as normal sales as permitted under that guidance. The Company typically elects to treat contracts to sell oil and gas production as normal sales, which are then accounted for as contracts with customers. The Company has determined that these contracts represent multiple performance obligations which are satisfied when control of the commodity transfers to the customer, typically through the delivery of the specified commodity to a designated delivery point. Revenue is measured based on consideration specified in the contract with the customer, and excludes any amounts collected on behalf of third parties. The Company recognizes revenue in the amount that reflects the consideration it expects to be entitled to in exchange for transferring control of those goods to the customer. The contract consideration in the Company’s variable price contracts are typically allocated to specific performance obligations in the contract according to the price stated in the contract. Amounts allocated in the Company’s fixed price contracts are based on the standalone selling price of those products in the context of long-term, fixed price contracts, which generally approximates the contract price. Payment is generally received one or two months after the sale has occurred. Gain or loss on derivative instruments is outside the scope of ASC 606 and is not considered revenue from contracts with customers subject to ASC 606. The Company may use financial or physical contracts accounted for as derivatives as economic hedges to manage price risk associated with normal sales, or in limited cases may use them for contracts the Company intends to physically settle but do not meet all of the criteria to be treated as normal sales. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, and that are collected by the Company from a customer, are excluded from revenue. Producer Gas Imbalances. The Company applies the sales method of accounting for natural gas revenue. Under this method, revenues are recognized based on the actual volume of natural gas sold to purchasers. Natural gas production operations may include joint owners who take more or less than the production volumes entitled to them on certain properties. Production volume is monitored to minimize these natural gas imbalances. Under this method, a natural gas imbalance liability is recorded if the Company's excess takes of natural gas exceed its estimated remaining proved developed reserves for these properties at the actual price realized upon the gas sale. A receivable is recognized only to the extent an imbalance cannot be recouped from the reserves in the underlying properties. The Company’s aggregate imbalance positions at December 31, 2018 and 2017 were not material. Brokered Natural Gas. Revenues and expenses related to brokered natural gas are reported gross as part of operating revenues and operating expenses in accordance with applicable accounting standards. The Company buys and sells natural gas utilizing separate purchase and sale transactions whereby the Company or the counterparty obtains control of the natural gas purchased or sold. Disaggregation of Revenue. The following table presents revenues disaggregated by product: Year Ended December 31, (In thousands) 2018 2017 (1) 2016 (1) OPERATING REVENUES Natural gas $ 1,881,150 $ 1,506,078 $ 1,022,590 Crude oil and condensate 48,722 212,338 151,106 Brokered natural gas 209,530 17,217 13,569 Other 4,314 11,660 7,362 Total revenues from contracts with customers 2,143,716 1,747,293 1,194,627 Gain (loss) on derivative instruments 44,432 16,926 (38,950 ) Total operating revenues $ 2,188,148 $ 1,764,219 $ 1,155,677 _______________________________________________________________________________ (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. All of the Company’s revenues from contracts with customers represent products transferred at a point in time as control is transferred to the customer and are generated in the United States. Transaction Price Allocated to Remaining Performance Obligations. A significant number of the Company’s product sales are short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. As of December 31, 2018 , the Company has $10.1 billion of unsatisfied performance obligations related to natural gas sales that have a fixed pricing component and a contract term greater than one year. The Company expects to recognize these obligations over periods ranging from 5 to 20 years. Contract Balances. Receivables from contracts with customers are recorded when the right to consideration becomes unconditional, generally when control of the product has been transferred to the customer. Receivables from contracts with customers were $363.0 million and $215.5 million as of December 31, 2018 and 2017 , respectively, and are reported in accounts receivable, net on the Consolidated Balance Sheet. The Company currently has no assets or liabilities related to its revenue contracts, including no upfront or rights to deficiency payments. Practical Expedients. The Company has made use of certain practical expedients in adopting the new revenue standard, including the value of unsatisfied performance obligations are not disclosed for (i) contracts with an original expected length of one year or less, (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice, (iii) contracts with variable consideration which is allocated entirely to a wholly unsatisfied performance obligation and meets the variable allocation criteria in the standard and (iv) only contracts that are not completed at transition. The Company has not adjusted the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. Income Taxes The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the estimated future tax consequences attributable to the differences between the financial carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. The Company follows the “equity first” approach when applying the limitation for certain executive compensation in excess of $1 million to future compensation. The limitation is first applied to stock-based compensation that vests in future tax years before considering cash compensation paid in a future period. Accordingly, the Company records a deferred tax asset for stock-based compensation expense recorded in the current period, and reverses the temporary difference in the future period, during which the stock-based compensation becomes deductible for tax purposes. The Company is required to make judgments, including estimating reserves for potential adverse outcomes regarding tax positions that the Company has taken. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return. The tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination by taxing authorities based on technical merits of the position. The amount of the tax benefit recognized is the largest amount of the benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. The effective tax rate and the tax basis of assets and liabilities reflect management's estimates of the ultimate outcome of various tax uncertainties. The Company recognizes accrued interest related to uncertain tax positions in interest expense and accrued penalties related to such positions in general and administrative expense in the Consolidated Statement of Operations. Stock-Based Compensation The Company accounts for stock-based compensation under the fair value method of accounting. Under this method, compensation cost is measured at the grant date for equity-classified awards and remeasured each reporting period for liability-classified awards based on the fair value of an award and is recognized over the service period, which is generally the vesting period. To calculate fair value, the Company uses either a Monte Carlo or Black-Scholes valuation model depending on the specific provisions of the award. Stock-based compensation cost for all types of awards is included in general and administrative expense in the Consolidated Statement of Operations. Effective January 1, 2017, the Company adopted ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires the Company to record excess tax benefits and tax deficiencies on stock-based compensation in the income statement upon vesting of the respective awards. Prior to the adoption of ASU 2016-09, excess benefits were recorded in additional paid-in capital in the Consolidated Balance Sheet and tax deficiencies reduced additional paid-in capital to the extent they offset previously recorded tax benefits. As a result of the adoption of ASU 2016-09, excess tax benefits and tax deficiencies are included in cash flows from operating activities. Cash paid by the Company when directly withholding shares from employee stock-based compensation awards for tax-withholding purposes are classified as financing activities in the Consolidated Statement of Cash Flow. Environmental Matters Environmental expenditures are expensed or capitalized, as appropriate, depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations, and that do not have future economic benefit are expensed. Liabilities related to future costs are recorded on an undiscounted basis when environmental assessments |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Divestitures | Divestitures The Company recognized an aggregate net loss on sale of assets of $16.3 million , $11.6 million and $1.9 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. In July 2018, the Company sold certain proved and unproved oil and gas properties in the Haynesville Shale to a third party for $30.0 million . The sales price included a $5.0 million deposit that was received in the fourth quarter of 2017. During the fourth quarter of 2017, the Company classified these assets as held for sale. The Company recognized a gain on sale of oil and gas properties of $29.7 million . In February 2018, the Company sold certain proved and unproved oil and gas properties in the Eagle Ford Shale to an affiliate of Venado Oil & Gas LLC for $765.0 million . The sales price included a $76.5 million deposit that was received in the fourth quarter of 2017. During the fourth quarter of 2017, the Company classified these assets as held for sale and recorded an impairment charge of $414.3 million associated with the proposed sale of these properties. The Company recognized a loss on sale of oil and gas properties of $45.4 million . In September 2017, the Company sold certain proved and unproved oil and gas properties and related pipeline assets located in West Virginia, Virginia and Ohio to an affiliate of Carbon Natural Gas Company for $41.3 million , and recognized an $11.9 million loss on sale of assets. During the second quarter of 2017, the Company had classified these assets as held for sale and recorded an impairment charge of $68.6 million associated with the proposed sale of these properties. In February 2016, the Company completed the divestiture of certain proved and unproved oil and gas properties in east Texas for $56.4 million and recognized a $0.5 million gain on sale of assets. The purchase price included a $6.3 million deposit that was received in the fourth quarter of 2015. |
Properties and Equipment, Net
Properties and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment, Net | Properties and Equipment, Net Properties and equipment, net are comprised of the following: December 31, (In thousands) 2018 2017 Proved oil and gas properties $ 5,717,145 $ 4,932,512 Unproved oil and gas properties 194,435 190,474 Gathering and pipeline systems 83 1,569 Land, building and other equipment 94,714 82,670 6,006,377 5,207,225 Accumulated depreciation, depletion and amortization (2,542,771 ) (2,135,021 ) $ 3,463,606 $ 3,072,204 Assets Held for Sale In December 2017, the Company entered into an agreement to sell certain proved and unproved oil and gas properties in the Haynesville Shale to a third party for $30.0 million and classified these assets as held for sale. The Company closed this transaction in July 2018. In December 2017, the Company entered into an agreement to sell certain proved and unproved oil and gas properties in the Eagle Ford Shale to an affiliate of Venado Oil & Gas LLC for $765.0 million and classified these assets as held for sale. The Company closed this transaction in February 2018. Balance sheet data related to the assets held for sale is as follows: (In thousands) December 31, 2017 ASSETS Inventories $ 1,440 Properties and equipment, net 778,855 780,295 LIABILITIES Accounts payable 2,352 Asset retirement obligations 15,748 18,100 Net assets held for sale $ 762,195 The assets held for sale as of December 31, 2017 do not qualify for discontinued operations as they do not represent a strategic shift that will have a major effect of the Company's operations or financial results. Impairment of Oil and Gas Properties In December 2017, the Company recorded an impairment of $414.3 million associated with its Eagle Ford Shale oil and gas properties located in south Texas. The impairment of these properties was due to the anticipated sale of these assets, as demonstrated by the execution of a purchase and sale agreement with a third party on December 19, 2017. These assets were designated as held for sale and were reduced to fair value of approximately $765.6 million . In June 2017, the Company recorded an impairment of $68.6 million associated with its proposed sale of oil and gas properties and related pipeline assets located in West Virginia, Virginia and Ohio. These assets were designated as held for sale as of June 30, 2017 and were reduced to fair value of approximately $37.9 million . In December 2016, the Company recorded an impairment of $435.6 million associated with oil and gas properties and related pipeline assets located in West Virginia and Virginia. In the fourth quarter of 2016, although oil and natural gas prices had improved since late 2015, the Company performed an impairment test of its West Virginia and Virginia fields because it had then determined that it was more likely than not that the Company would dispose of these assets significantly earlier than their remaining expected useful life. As a result of its step one assessment, which was based on a probability weighted assessment that considered the anticipated disposition of these assets earlier than their remaining expected useful life, the Company determined that these assets were impaired, which resulted in an impairment charge of $435.6 million . These assets were reduced to fair value of approximately $89.2 million . The fair value of the impaired assets in 2017 was determined using a market approach that took into consideration the expected sales price included in the respective purchase and sale agreements the Company executed in June and December 2017. Accordingly, the inputs associated with the fair value of these assets were considered Level 3 in the fair value hierarchy. Refer to Note 1 for a description of fair value hierarchy. The fair value of the impaired assets in 2016 was determined using a market approach that took into consideration the preliminary purchase price included in a draft purchase and sale agreement that was under negotiation with a potential buyer as of December 31, 2016. Accordingly, the inputs associated with the fair value of these assets were considered Level 3 in the fair value hierarchy. Refer to Note 1 for a description of fair value hierarchy. Capitalized Exploratory Well Costs The following table reflects the net changes in capitalized exploratory well costs: Year Ended December 31, (In thousands) 2018 2017 2016 Balance at beginning of period $ 19,511 $ — $ — Additions to capitalized exploratory well costs pending the determination of proved reserves — 19,511 — Reclassifications to wells, facilities, and equipment based on the determination of proved reserves — — — Capitalized exploratory well costs charged to expense (19,511 ) — — Balance at end of period $ — $ 19,511 $ — The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed: December 31, (In thousands) 2018 2017 2016 Capitalized exploratory well costs that have been capitalized for a period of one year or less $ — $ 19,511 $ — Capitalized exploratory well costs that have been capitalized for a period greater than one year — — — $ — $ 19,511 $ — |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The Company has two equity method investments, Constitution Pipeline Company, LLC (Constitution) and Meade Pipeline Co LLC (Meade), which are further described below. Activity related to these equity method investments is as follows: Constitution Meade Total Year Ended December 31, Year Ended December 31, Year Ended December 31, (In thousands) 2018 2017 2016 2018 2017 2016 2018 2017 2016 Balance at beginning of period $ 732 $ 96,850 $ 90,345 $ 85,345 $ 32,674 $ 13,172 $ 86,077 $ 129,524 $ 103,517 Contributions 500 4,350 8,975 76,763 52,689 19,509 77,263 57,039 28,484 Distributions — — — (1,296 ) — — (1,296 ) — — Earnings (loss) on equity method investments (1,232 ) (100,468 ) (2,470 ) 2,369 (18 ) (7 ) 1,137 (100,486 ) (2,477 ) Balance at end of period $ — $ 732 $ 96,850 $ 163,181 $ 85,345 $ 32,674 $ 163,181 $ 86,077 $ 129,524 Constitution Pipeline Company, LLC In April 2012, the Company acquired a 25 percent equity interest in Constitution, which was formed to develop, construct and operate a 124 -mile large diameter pipeline to transport natural gas from northeast Pennsylvania to both the New England and New York markets. Under the terms of the agreement, the Company agreed to invest its proportionate share of costs associated with the development and construction of the pipeline and related facilities, subject to a contribution cap of $250 million . On April 22, 2016, Constitution announced that the New York State Department of Environmental Conservation (NYSDEC) denied Constitution's application for a Section 401 Water Quality Certification (Certification) for the New York State portion of its proposed 124 -mile route. Since mid-2016, Constitution has sought relief of NYSDEC’s denial of the Certification by filing petitions in the U.S. Court of Appeals for the Second Circuit, the U.S. District Court for the Northern District of New York and the Federal Energy Regulatory Commission (FERC), all of which have been unsuccessful. On October 11, 2017, Constitution filed a petition for a declaratory order requesting the FERC to find that, by operation of law, the Section 401 Water Quality Certification requirement for the New York State portion of the pipeline project was waived due to the failure of the NYSDEC to act on Constitution’s application within a reasonable period of time, as required by the Clean Water Act. On January 11, 2018, the FERC denied Constitution’s petition and later denied its subsequent rehearing request. On January 16, 2018, Constitution petitioned the U.S. Supreme Court to review the judgment of the U.S. Court of Appeals for the Second Circuit, which petition was denied on April 30, 2018. On September 14, 2018, Constitution petitioned the U.S. Court of Appeals for the D.C. Circuit to review the FERC’s denial of the petition for declaratory order. On November 5, 2018, the D.C. Circuit ordered that Constitution’s appeal be held in abeyance, pending the disposition of another case with similar issues presented, which was argued to the Court on October 1, 2018. That case, Hoopa Valley Tribe V. FERC, was decided by the D.C Circuit on January 25, 2019 in favor of the petitioner, who had asked the Court to find that a state agency had waived its Clean Water Act Section 401 authority by failing to act within a reasonable time and not within the one-year statutory period. The Court held that the petitioner's withdrawal and re-submission of Section 401 Water Quality Certification requests did not trigger new, statutory one-year periods of review for the state agencies. The Court vacated and remanded the underlying orders and ordered the FERC to proceed with its review of petitioner’s hydroelectric license application. Constitution’s appeal remains pending and the impact of the Hoopa Valley case on Constitution’s appeal has not yet been determined. Constitution has stated its intention to continue to pursue this appeal and all available legal challenges to the NYDEC’s denial of the Certification and remains committed to the project. In light of the current status of the remaining litigation and regulatory challenges, Constitution is unable to reasonably estimate its target in-service date. The Company evaluated its investment in Constitution for other than temporary impairment (OTTI) as of December 31, 2017. The Company’s evaluation considered various factors, including but not limited to prior FERC approval and the related economic viability of the project, the other members’ continued commitment to the project and the preceding legal and regulatory actions. In light of the recent actions taken by the courts and regulators to uphold the NYDEC’s denial of the certification and the Company's estimation of the likelihood of an unfavorable outcome associated with the remaining legal and regulatory challenges, the Company recorded an OTTI of $95.9 million in December 2017, reducing its investment in Constitution to its estimated fair value. Fair value was determined using a market approach. The Company will continue to monitor the carrying value of its investment as required. As of December 31, 2018 , the Company’s carrying value of its investment in Constitution is less than its proportionate share of Constitution’s net assets by $95.9 million . This basis difference is due to the Company’s impairment recorded in the fourth quarter of 2017 and relates entirely to the pipeline assets of Constitution. The Company expects to amortize this basis difference once the related assets of Constitution are placed in service, which may or may not occur, depending on the outcome of the legal and regulatory process. At this time, the Company remains committed to funding the project in an amount in proportion to its ownership interest for the duration of the remaining legal and regulatory challenges and if successful, the development and construction of the new pipeline. Meade Pipeline Co LLC In February 2014, the Company acquired a 20 percent equity interest in Meade, which was formed to participate in the development and construction of the Central Penn Line, a 177 -mile pipeline operated by Transcontinental Gas Pipe Line Company, LLC (Transco) that transports natural gas from Susquehanna County, Pennsylvania to an interconnect with Transco’s mainline in Lancaster County, Pennsylvania. The Central Penn Line is owned by Transco and Meade in proportion to their respective ownership percentages of approximately 61 percent and 39 percent , respectively. The FERC authorized the construction of the new pipeline on February 3, 2017 and the Central Penn Line was placed into service on October 6, 2018. On August 14, 2018, the Company entered into a precedent agreement with Transco for up to 250,000 Dth per day of firm transportation capacity on Transco's proposed Leidy South expansion project. The Company will also be participating as an equity owner in the expansion project through its ownership in Meade and expects to contribute approximately $17.1 million , its proportionate share of the anticipated costs of the expansion project over the next three years. The expansion project is anticipated to be in-service as early as the fourth quarter of 2021, assuming all necessary regulatory approvals are received in a timely manner and construction proceeds on schedule. |
Debt and Credit Agreements
Debt and Credit Agreements | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements The Company's debt and credit agreements consisted of the following: December 31, (In thousands) 2018 2017 Total debt 6.51% weighted-average senior notes (1) $ 124,000 $ 361,000 9.78% senior notes (2) — 67,000 5.58% weighted-average senior notes 175,000 175,000 3.65% weighted-average senior notes 925,000 925,000 Revolving credit facility 7,000 — Unamortized debt issuance costs (4,896 ) (6,109 ) $ 1,226,104 $ 1,521,891 _______________________________________________________________________________ (1) Includes $237.0 million of current portion of long-term debt at December 31, 2017 . (2) Includes $67.0 million of current portion of long-term debt at December 31, 2017 . The Company has debt maturities of $87.0 million due in 2020, $188.0 million due in 2021 and $62.0 million due in 2023 associated with its senior notes. In addition, the revolving credit facility matures in April 2020 . No other tranches of debt are due within the next five years. At December 31, 2018 , the Company was in compliance with all restrictive financial covenants for both its revolving credit facility and senior notes. Senior Notes The Company has various issuances of senior notes. Interest on each of the senior notes is payable semi-annually. Under the terms of the various senior note agreements, the Company may prepay all or any portion of the notes of each series on any date at a price equal to the principal amount thereof plus accrued and unpaid interest plus a make-whole premium. The Company's agreements provide that the Company maintain a minimum asset coverage ratio of 1.75 to 1.0 and a minimum annual coverage ratio of consolidated cash flow to interest expense for the trailing four quarters of 2.8 to 1.0. There are also various other covenants and events of default customarily found in such debt instruments. 6.51% Weighted-Average Senior Notes In July 2008, the Company issued $425.0 million of senior unsecured notes to a group of 41 institutional investors in a private placement. The notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 245,000,000 10 years July 2018 6.44 % Tranche 2 $ 100,000,000 12 years July 2020 6.54 % Tranche 3 $ 80,000,000 15 years July 2023 6.69 % In May 2016, the Company repurchased $8.0 million of Tranche 1, $13.0 million of Tranche 2 and $43.0 million of Tranche 3 for a total of $64.0 million for $68.3 million . The Company recognized a $4.7 million extinguishment loss associated with the premium paid and the write-off of a portion of the related deferred financing costs due to early repayment . As of December 31, 2018 , the Company has repaid $301.0 million of aggregate principal amount associated with the 6.51% weighted-average senior notes. 5.58% Weighted-Average Senior Notes In December 2010, the Company issued $175.0 million of senior unsecured notes to a group of eight institutional investors in a private placement. The notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 88,000,000 10 years January 2021 5.42 % Tranche 2 $ 25,000,000 12 years January 2023 5.59 % Tranche 3 $ 62,000,000 15 years January 2026 5.80 % 3.65% Weighted‑Average Senior Notes In September 2014, the Company issued $925.0 million of senior unsecured notes to a group of 24 institutional investors in a private placement. The notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 100,000,000 7 years September 2021 3.24 % Tranche 2 $ 575,000,000 10 years September 2024 3.67 % Tranche 3 $ 250,000,000 12 years September 2026 3.77 % Revolving Credit Agreement The Company's revolving credit facility is unsecured. The borrowing base is redetermined annually under the terms of the revolving credit facility on April 1. In addition, either the Company or the banks may request an interim redetermination twice a year or in conjunction with certain acquisitions or sales of oil and gas properties. Effective April 18, 2018 , the Company’s borrowing base and available commitments were reaffirmed at $3.2 billion and $1.7 billion , respectively. The Company's revolving credit facility matures in April 2020 . Interest rates under the revolving credit facility are based on LIBOR or ABR indications, plus a margin which ranges from 50 to 225 basis points, as defined in the agreement . The revolving credit facility also provides for a commitment fee on the unused available balance at annual rates ranging from 0.30 percent to 0.50 percent . The revolving credit facility contains various other customary covenants, which include the following (with all calculations based on definitions contained in the agreement): (a) Maintenance of a minimum asset coverage ratio of 1.75 to 1.0. (b) Maintenance of a minimum annual coverage ratio of consolidated cash flow to interest expense for the trailing four quarters of 2.8 to 1.0. (c) Maintenance of a minimum current ratio of 1.0 to 1.0. At December 31, 2018 , the Company had $7.0 million of borrowings outstanding under its revolving credit facility and had unused commitments of $1.8 billion . The Company's weighted-average effective interest rate for the revolving credit facility during the year ended December 31, 2018 and 2016 was approximately 6.3 percent and 2.3 percent , respectively. There were no outstanding borrowings during 2017. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments As of December 31, 2018 , the Company had the following outstanding financial commodity derivatives: Swaps Basis Swaps Type of Contract Volume (Mmbtu) Contract Period Weighted- Average ($/Mmbtu) Weighted- Average ($/Mmbtu) Natural gas (IFERC TRANSCO Z6 non-NY) 10,950,000 Jan. 2019 - Dec. 2019 $ 0.41 Natural gas (IFERC TRANSCO Z6 non-NY) 11,700,000 Jan. 2019 - Mar. 2019 $ 7.38 Natural gas (IFERC TRANSCO Leidy Line Receipts) 54,750,000 Jan. 2019 - Dec. 2019 $ (0.53 ) Natural gas (NYMEX) 4,500,000 Jan. 2019 - Mar. 2019 $ 4.31 Natural gas (NYMEX) 10,700,000 Apr. 2019 - Oct. 2019 $ 2.75 Natural gas (NYMEX) 109,500,000 Jan. 2019 - Dec. 2019 $ 3.13 In early 2019, we entered into the following financial commodity derivative contracts: Swaps Type of Contract Volume (Mmbtu) Contract Period Weighted- Average ($/Mmbtu) Natural gas (NYMEX) 42,800,000 Apr. 2019 - Oct. 2019 $ 2.86 Effect of Derivative Instruments on the Consolidated Balance Sheet Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities December 31, December 31, (In thousands) Balance Sheet Location 2018 2017 2018 2017 Commodity contracts Derivative instruments (current) $ 57,665 $ — $ — $ 30,637 Commodity contracts Derivative instruments (non-current) — 2,239 — — $ 57,665 $ 2,239 $ — $ 30,637 Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet December 31, (In thousands) 2018 2017 Derivative assets Gross amounts of recognized assets $ 60,105 $ 2,239 Gross amounts offset in the statement of financial position (2,440 ) — Net amounts of assets presented in the statement of financial position 57,665 2,239 Gross amounts of financial instruments not offset in the statement of financial position — — Net amount $ 57,665 $ 2,239 Derivative liabilities Gross amounts of recognized liabilities $ 2,440 $ 30,637 Gross amounts offset in the statement of financial position (2,440 ) — Net amounts of liabilities presented in the statement of financial position — 30,637 Gross amounts of financial instruments not offset in the statement of financial position — 241 Net amount $ — $ 30,878 Effect of Derivative Instruments on the Consolidated Statement of Operations Year Ended December 31, (In thousands) 2018 2017 2016 Cash received (paid) on settlement of derivative instruments Gain (loss) on derivative instruments $ (41,631 ) $ 8,056 $ (1,682 ) Non-cash gain (loss) on derivative instruments Gain (loss) on derivative instruments 86,063 8,870 (37,268 ) $ 44,432 $ 16,926 $ (38,950 ) Additional Disclosures about Derivative Instruments The use of derivative instruments involves the risk that the counterparties will be unable to meet their obligations under the agreements. The Company's counterparties are primarily commercial banks and financial service institutions that management believes present minimal credit risk and its derivative contracts are with multiple counterparties to minimize its exposure to any individual counterparty. The Company performs both quantitative and qualitative assessments of these counterparties based on their credit ratings and credit default swap rates where applicable. Certain counterparties to the Company's derivative instruments are also lenders under its revolving credit facility. The Company's revolving credit facility and derivative instruments contain certain cross default and acceleration provisions that may require immediate payment of its derivative liabilities in certain situations. The Company also has netting arrangements with each of its counterparties that allow it to offset assets and liabilities from separate derivative contracts with that counterparty. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial Assets and Liabilities The following fair value hierarchy table presents information about the Company's financial assets and liabilities measured at fair value on a recurring basis: (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Assets Deferred compensation plan $ 14,699 $ — $ — $ 14,699 Derivative instruments — 35,689 24,416 60,105 Total assets $ 14,699 $ 35,689 $ 24,416 $ 74,804 Liabilities Deferred compensation plan $ 25,780 $ — $ — $ 25,780 Derivative instruments — — 2,440 2,440 Total liabilities $ 25,780 $ — $ 2,440 $ 28,220 (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2017 Assets Deferred compensation plan $ 14,966 $ — $ — $ 14,966 Derivative instruments — — 2,239 2,239 Total assets $ 14,966 $ — $ 2,239 $ 17,205 Liabilities Deferred compensation plan $ 29,145 $ — $ — $ 29,145 Derivative instruments — — 30,637 30,637 Total liabilities $ 29,145 $ — $ 30,637 $ 59,782 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 or internal models. Such quotes and models have been derived using an income approach that considers various inputs including current market and contractual prices for the underlying instruments, quoted forward commodity prices, basis differentials, volatility factors and interest rates, such as a LIBOR curve for a similar length of time as the derivative contract term as applicable. Estimates are derived from or 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. An increase (decrease) in these unobservable inputs would result in an increase (decrease) in fair value, respectively. The Company does not have access to the specific assumptions used in its counterparties' valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided. The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: Year Ended December 31, (In thousands) 2018 2017 2016 Balance at beginning of period $ (28,398 ) $ (15,868 ) $ — Total gain (loss) included in earnings 31,184 (1,866 ) (17,886 ) Settlement (gain) loss 19,190 (10,664 ) 2,018 Transfers in and/or out of Level 3 — — — Balance at end of period $ 21,976 $ (28,398 ) $ (15,868 ) Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ 19,732 $ (28,398 ) $ (15,868 ) There were no transfers between Level 1 and Level 2 fair value measurements for the years ended December 31, 2018 , 2017 and 2016 . Non-Financial Assets and Liabilities The Company discloses or recognizes its non-financial assets and liabilities, such as impairments of oil and gas properties or impairments of equity method investments, at fair value on a nonrecurring basis. The Company recorded an impairment charge related to certain oil and gas properties during the years ended December 31, 2017 and 2016 . The Company also recorded an other than temporary impairment of its equity method investment in Constitution during the year ended December 31, 2017. Refer to Notes 3 and 4 for additional disclosures related to fair value associated with the impaired assets. As none of the Company’s other non-financial assets and liabilities were measured at fair value as of December 31, 2018 , 2017 and 2016 , additional disclosures were not required. The estimated fair value of the Company's asset retirement obligations at inception is determined by utilizing the income approach by applying a credit-adjusted risk-free rate, which takes into account the Company's credit risk, the time value of money, and the current economic state to the undiscounted expected abandonment cash flows. Given the unobservable nature of the inputs, the measurement of the asset retirement obligations was classified as Level 3 in the fair value hierarchy. Fair Value of Other Financial Instruments The estimated fair value of other financial instruments is the amount at which the instrument could be exchanged currently between willing parties. The carrying amount reported in the Consolidated Balance Sheet for cash and cash equivalents 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 : December 31, 2018 December 31, 2017 (In thousands) Carrying Amount Estimated Fair Value Carrying Estimated Fair Value Long-term debt $ 1,226,104 $ 1,202,994 $ 1,521,891 $ 1,527,624 Current maturities — — (304,000 ) (312,055 ) Long-term debt, excluding current maturities $ 1,226,104 $ 1,202,994 $ 1,217,891 $ 1,215,569 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Activity related to the Company's asset retirement obligations is as follows: (In thousands) Year Ended December 31, 2018 Balance at beginning of period (1) $ 48,553 Liabilities incurred 5,152 Liabilities settled (1,035 ) Liabilities divested (3,809 ) Accretion expense 2,541 Transferred from held for sale 220 Balance at end of period (2) $ 51,622 _______________________________________________________________________________ (1) Includes $5.0 million of current asset retirement obligations included in accrued liabilities at December 31, 2017 . (2) Includes $1.0 million of current asset retirement obligations included in accrued liabilities at December 31, 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Transportation and Gathering Agreements The Company has entered into certain transportation and gathering agreements with various pipeline carriers. Under certain of these agreements, the Company is obligated to ship minimum daily quantities, or pay for any deficiencies at a specified rate. The Company's forecasted production to be shipped on these pipelines is expected to exceed minimum daily quantities provided in the agreements. The Company is also obligated under certain of these arrangements to pay a demand charge for firm capacity rights on pipeline systems regardless of the amount of pipeline capacity utilized by the Company. If the Company does not utilize the capacity, it can release it to others, thus reducing its potential liability. As of December 31, 2018 , the Company's future minimum obligations under transportation and gathering agreements are as follows: (In thousands) 2019 $ 100,703 2020 145,997 2021 159,286 2022 159,286 2023 142,943 Thereafter 954,740 $ 1,662,955 Lease Commitments The Company leases certain office space, warehouse facilities, machinery and equipment under cancelable and non-cancelable leases. Rent expense under these arrangements totaled $9.3 million , $9.7 million and $10.7 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Future minimum rental commitments under non-cancelable leases in effect at December 31, 2018 are as follows: (In thousands) 2019 $ 5,571 2020 5,684 2021 4,777 2022 1,659 2023 1,691 Thereafter 2,852 $ 22,234 Legal Matters The Company is a defendant in various legal proceedings arising in the normal course of business. All known liabilities are accrued when management determines they are probable based on its best estimate of the potential loss. While the outcome and impact of these legal proceedings on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings will not have a material effect on the Company's financial position, results of operations or cash flows. Contingency Reserves . When deemed necessary, the Company establishes reserves for certain legal proceedings. The establishment of a reserve is based on an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible that the Company could incur additional losses with respect to those matters in which reserves have been established. The Company believes that any such amount above the amounts accrued would not be material to the Consolidated Financial Statements. Future changes in facts and circumstances not currently foreseeable could result in the actual liability exceeding the estimated ranges of loss and amounts accrued. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the U.S. enacted the Tax Act which significantly changed U.S. corporate income tax laws beginning, generally, in 2018. These changes included, among others, (i) a permanent reduction of the U.S. corporate income tax rate from a top marginal rate of 35 percent to a flat rate of 21 percent , (ii) elimination of the corporate alternative minimum tax, (iii) immediate deductions for certain new investments instead of deductions for depreciation expense over time, (iv) limitation on the tax deduction for interest expense to 30 percent of adjusted taxable income, (v) limitation of the deduction for net operating losses to 80 percent of current year taxable income and elimination of net operating loss carrybacks, and (vi) elimination of many business deductions and credits, including the domestic production activities deduction, the deduction for entertainment expenditures, and the deduction for certain executive compensation in excess of $1 million. The 2018 tax provision reflects the legislative changes noted above, including the new corporate tax rate of 21 percent . Income tax expense (benefit) is summarized as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Current Federal $ (95,191 ) $ (9,531 ) $ (9,920 ) State 6,682 1,816 (1,848 ) (88,509 ) (7,715 ) (11,768 ) Deferred Federal 230,643 (313,938 ) (218,357 ) State (1,040 ) (7,175 ) (12,350 ) 229,603 (321,113 ) (230,707 ) Income tax expense (benefit) $ 141,094 $ (328,828 ) $ (242,475 ) Income tax expense (benefit) was different than the amounts computed by applying the statutory federal income tax rate as follows: Year Ended December 31, 2018 2017 2016 (In thousands, except rates) Amount Rate Amount Rate Amount Rate Computed "expected" federal income tax $ 146,609 21.00 % $ (79,952 ) 35.00 % $ (230,860 ) 35.00 % State income tax, net of federal income tax benefit 11,850 1.70 % (4,239 ) 1.86 % (10,888 ) 1.65 % Deferred tax adjustment related to change in overall state tax rate (15,208 ) (2.18 )% (48 ) 0.02 % (663 ) 0.10 % Valuation allowance 8,975 1.29 % (505 ) 0.22 % 221 (0.03 )% Provision to return adjustments (1,773 ) (0.25 )% (3,242 ) 1.42 % (121 ) 0.02 % Excess stock compensation 327 0.05 % 2,965 (1.30 )% — — % Tax Act (11,367 ) (1.63 )% (242,875 ) 106.32 % — — % Other, net 1,681 0.24 % (932 ) 0.41 % (164 ) 0.02 % Income tax expense (benefit) $ 141,094 20.21 % $ (328,828 ) 143.95 % $ (242,475 ) 36.76 % In 2018, the Company's overall effective tax rate significantly decreased compared to 2017, primarily due to the Tax Act. As a result of the enactment of the Tax Act, the Company recorded an income tax benefit in December 2017 of $242.9 million resulting from the remeasurement of its net deferred tax liabilities based on the new lower corporate income tax rate. The Company recorded an additional $11.4 million tax benefit in 2018 for the Tax Act, of which $10.7 million relates to the reversal of the valuation allowance for the sequestration reduction on the refundable portion of alternative minimum tax (AMT) credits, and the remainder relates to finalizing certain tax positions with the filing of the 2017 tax returns. The accounting for the income tax effects of the Tax Act has been completed and all adjustments are reflected in our Consolidated Financial Statements as of December 31, 2018. Excluding the discrete impact of the Tax Act, the adjusted effective tax rates were 21.8 percent for 2018 and 37.6 percent for 2017. The effective tax rate was lower in 2018 than in 2017 primarily due to the reduction of the U.S. corporate income tax rate from 35 percent to 21 percent , a reduction in our estimated net state deferred tax liabilities as a result of updated state apportionment factors in the states in which the Company operates, and smaller provision-to-return adjustments in 2018 compared to 2017. The composition of net deferred tax liabilities is as follows: December 31, (In thousands) 2018 2017 Deferred Tax Assets Net operating losses $ 56,769 $ 207,633 Alternative minimum tax credits 114,149 208,624 Foreign tax credits 3,473 3,541 Other business credits 3,380 3,524 Derivative instruments — 6,645 Incentive compensation 17,378 15,898 Deferred compensation 5,690 6,065 Post-retirement benefits 6,799 7,265 Equity method investments 20,746 21,812 Capital loss carryforward 8,877 — Other 2,957 492 Less: valuation allowance (14,943 ) (16,711 ) Total 225,275 464,788 Deferred Tax Liabilities Properties and equipment 670,704 691,818 Derivative instruments 13,168 — Total 683,872 691,818 Net deferred tax liabilities $ 458,597 $ 227,030 Under the Tax Act of 2017, the Company may claim a refund of 50 percent of its 2017 remaining AMT credits (to the extent the credits exceed regular tax for the year) in 2018, 2019 and 2020. Any AMT credits remaining after 2020 will be refunded in 2021. The Company had recorded a valuation allowance in December 2017 of $10.7 million to account for the sequestration reduction the Internal Revenue Service (IRS) would apply to the refundable portion of the AMT credits. This valuation allowance was reversed in December 2018, as the IRS announced that refunds of AMT credits as provided under the 2017 Tax Act will not be subject to sequester. As of December 31, 2018, the Company reclassified $114.1 million of its AMT credit carryforward to current income tax receivable, and has a remaining AMT credit carryforward balance of $114.1 million , which will be used to offset regular income taxes in 2019 and 2020 before being fully refunded by 2021. As of December 31, 2018, the Company had a gross federal net operating loss (NOL) carryforward of $142.6 million , which will not begin to expire until 2036. The Company also had gross state NOL carryforwards of $468.1 million , the majority of which will not expire until 2024 through 2037. The Company had $14.1 million of state NOL valuation allowances, and believes it is more likely than not that the remainder of the deferred tax benefits associated with federal and state NOL carryforwards will be utilized prior to their expiration. Unrecognized Tax Benefits A reconciliation of unrecognized tax benefits is as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Balance at beginning of year $ 663 $ 663 $ 663 Additions for tax positions of prior years 16,187 — — Balance at end of year $ 16,850 $ 663 $ 663 As of December 31, 2018, the Company had a $16.9 million net reserve for unrecognized tax benefits primarily related to AMT associated with uncertain tax positions, and a $3.1 million liability for accrued interest associated with the uncertain tax positions. Any additional AMT payments could be utilized as credits against future regular tax liabilities and would be fully refunded from 2018 through 2021 under the Tax Act. Accordingly, the uncertain tax positions identified would not have a material impact on the Company's effective tax rate. The Company files income tax returns in the U.S. federal, various states and other jurisdictions. The Company is no longer subject to examinations by state authorities before 2012 or by federal authorities before 2013. The Company is currently under examination by the Internal Revenue Service for its 2014, 2015, and 2016 tax years. The Company believes that appropriate provisions have been made for all jurisdictions and all open years, and that any assessment on these filings will not have a material impact on the Company's financial position, results of operations or cash flows. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Postretirement Benefits The Company provides certain health care benefits for retired employees, including their spouses, eligible dependents and surviving spouses (retirees). These benefits are commonly called postretirement benefits. The health care plans are contributory, with participants' contributions adjusted annually. Most employees become eligible for these benefits if they meet certain age and service requirements at retirement. During the year ended December 31, 2017, the Company amended the plan to reflect a change from a Medicare Supplemental program to a Medicare Advantage program for participants age 65 and older. The coverage continues to be provided under a fully-insured arrangement. During the year ended December 31, 2016, the Company amended the plan to expand the eligibility definition to include those employees who have reached the age of 50 with at least 20 years of service. The Company provided postretirement benefits to 337 retirees and their dependents at the end of 2018 and 340 retirees and their dependents at the end of 2017 . Obligations and Funded Status The funded status represents the difference between the accumulated benefit obligation of the Company's postretirement plan and the fair value of plan assets at December 31. The postretirement plan does not have any plan assets; therefore, the unfunded status is equal to the amount of the December 31 accumulated benefit obligation. The change in the Company's postretirement benefit obligation is as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Change in Benefit Obligation Benefit obligation at beginning of year $ 31,050 $ 37,482 $ 36,626 Service cost 1,776 1,508 2,323 Interest cost 1,172 1,097 1,498 Actuarial (gain) loss (3,165 ) 5,156 (2,846 ) Benefits paid (1,056 ) (1,204 ) (934 ) Curtailments (1) — (4,346 ) — Plan amendments — (8,643 ) 815 Benefit obligation at end of year $ 29,777 $ 31,050 $ 37,482 Change in Plan Assets Fair value of plan assets at end of year — — — Funded status at end of year $ (29,777 ) $ (31,050 ) $ (37,482 ) _______________________________________________________________________________ (1) During 2017, the Company terminated approximately 100 employees in connection with the sale of oil and gas properties located in West Virginia, Virginia and Ohio. As a result, the employees’ participation in the postretirement plan also terminated, which resulted in a remeasurement and curtailment of the postretirement benefit obligation. Amounts Recognized in the Balance Sheet Amounts recognized in the balance sheet consist of the following: December 31, (In thousands) 2018 2017 2016 Current liabilities $ 1,865 $ 1,654 $ 1,223 Long-term liabilities 27,912 29,396 36,259 $ 29,777 $ 31,050 $ 37,482 Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Amounts recognized in accumulated other comprehensive income (loss) consist of the following: December 31, (In thousands) 2018 2017 2016 Net actuarial (gain) loss $ (1,253 ) $ 1,912 $ (2,266 ) Prior service cost (4,497 ) (5,206 ) 704 $ (5,750 ) $ (3,294 ) $ (1,562 ) Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Loss) Year Ended December 31, (In thousands) 2018 2017 2016 Components of Net Periodic Postretirement Benefit Cost Service cost $ 1,776 $ 1,508 $ 2,323 Interest cost 1,172 1,097 1,498 Amortization of prior service cost (709 ) (1,183 ) 111 Net periodic postretirement cost 2,239 1,422 3,932 Recognized curtailment gain — (4,917 ) — Total post retirement cost (income) $ 2,239 $ (3,495 ) $ 3,932 Other Changes in Benefit Obligations Recognized in Other Comprehensive Income (Loss) Net (gain) loss $ (3,165 ) $ 4,178 $ (2,846 ) Prior service cost — (8,643 ) 815 Amortization of prior service cost 709 2,733 (111 ) Total recognized in other comprehensive income (2,456 ) (1,732 ) (2,142 ) Total recognized in net periodic benefit cost (income) and other comprehensive income $ (217 ) $ (5,227 ) $ 1,790 Assumptions Assumptions used to determine projected postretirement benefit obligations and postretirement costs are as follows: December 31, 2018 2017 2016 Discount rate (1) 4.45 % 3.85 % 4.30 % Health care cost trend rate for medical benefits assumed for next year (pre-65) 7.25 % 7.50 % 7.50 % Health care cost trend rate for medical benefits assumed for next year (post-65) 5.50 % 5.75 % 5.00 % Ultimate trend rate (pre-65) 4.50 % 4.50 % 4.50 % Ultimate trend rate (post-65) 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate (pre-65) 2030 2030 2023 Year that the rate reaches the ultimate trend rate (post-65) 2023 2023 2018 _______________________________________________________________________________ (1) Represents the year end rates used to determine the projected benefit obligation. To compute postretirement cost in 2018 , 2017 and 2016 , respectively, the beginning of year discount rates of 3.85% , 3.85% and 4.25% were used. Coverage provided to participants age 65 and older is under a fully-insured arrangement. The Company subsidy is limited to 60 percent of the expected annual fully-insured premium for participants age 65 and older. For all participants under age 65, the Company subsidy for all retiree medical and prescription drug benefits, beginning January 1, 2006, was limited to an aggregate annual amount not to exceed $648,000 . This limit increases by 3.5 percent annually thereafter. Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: (In thousands) 1-Percentage-Point Increase 1-Percentage-Point Decrease Effect on total of service and interest cost $ 668 $ (510 ) Effect on postretirement benefit obligation 4,129 (3,310 ) Cash Flows Contributions. The Company expects to contribute approximately $1.9 million to the postretirement benefit plan in 2019 . Estimated Future Benefit Payments. The following estimated benefit payments under the Company's postretirement plans, which reflect expected future service, are expected to be paid as follows: (In thousands) 2019 $ 1,907 2020 1,954 2021 1,951 2022 2,013 2023 2,012 Years 2024 - 2028 8,993 Savings Investment Plan The Company has a Savings Investment Plan (SIP), which is a defined contribution plan. The Company matches a portion of employees' contributions in cash. Participation in the SIP is voluntary and all regular employees of the Company are eligible to participate. The Company matches employee contributions dollar-for-dollar, up to the maximum IRS limit, on the first six percent of an employee's pretax earnings. The SIP also provides for discretionary profit sharing contributions in an amount equal to 10 percent of an eligible plan participant's salary and bonus. During the years ended December 31, 2018 , 2017 and 2016 , the Company made contributions of $5.9 million , $6.5 million and $6.5 million , respectively, which are included in general and administrative expense in the Consolidated Statement of Operations. The Company's common stock is an investment option within the SIP. Deferred Compensation Plan The Company has a deferred compensation plan which is available to officers and certain members of the Company's management group and acts as a supplement to the SIP. The Internal Revenue Code does not cap the amount of compensation that may be taken into account for purposes of determining contributions to the deferred compensation plan and does not impose limitations on the amount of contributions to the deferred compensation plan. At the present time, the Company anticipates making a contribution to the deferred compensation plan on behalf of a participant in the event that Internal Revenue Code limitations cause a participant to receive less than the Company matching contribution under the SIP. The assets of the deferred compensation plan are held in a rabbi trust and are subject to additional risk of loss in the event of bankruptcy or insolvency of the Company. Under the deferred compensation plan, the participants direct the deemed investment of amounts credited to their accounts. The trust assets are invested in either mutual funds that cover the investment spectrum from equity to money market, or may include holdings of the Company's common stock, which is funded by the issuance of shares to the trust. The mutual funds are publicly traded and have market prices that are readily available. The Company's common stock is not currently an investment option in the deferred compensation plan. Shares of the Company's stock currently held in the deferred compensation plan represent vested performance share awards that were previously deferred into the rabbi trust. Settlement payments are made to participants in cash, either in a lump sum or in periodic installments. The market value of the trust assets, excluding the Company's common stock, was $14.7 million and $15.0 million at December 31, 2018 and 2017 , respectively, and is included in other assets in the Consolidated Balance Sheet. Related liabilities, including the Company's common stock, totaled $25.8 million and $29.1 million at December 31, 2018 and 2017 , respectively, and are included in other liabilities in the Consolidated Balance Sheet. With the exception of the Company's common stock, there is no impact on earnings or earnings per share from the changes in market value of the deferred compensation plan assets because the changes in market value of the trust assets are offset completely by changes in the value of the liability, which represents trust assets belonging to plan participants. As of December 31, 2018 and 2017 , 495,774 shares and 495,774 shares of the Company's common stock were held in the rabbi trust, respectively. These shares were recorded at the market value on the date of deferral, which totaled $5.1 million and $5.1 million at December 31, 2018 and 2017 , respectively, and is included in additional paid-in capital in stockholders' equity in the Consolidated Balance Sheet. The Company recognized compensation (benefit) expense of ( $3.1 million ), $2.6 million and $1.8 million in 2018 , 2017 and 2016 , respectively, which is included in general and administrative expense in the Consolidated Statement of Operations representing the increase (decrease) in the closing price of the Company's shares held in the trust. The Company's common stock issued to the trust is not considered outstanding for purposes of calculating basic earnings per share, but is considered a common stock equivalent in the calculation of diluted earnings per share. The Company made contributions to the deferred compensation plan of $1.1 million , $1.0 million and $0.6 million in 2018 , 2017 and 2016 , respectively, which are included in general and administrative expense in the Consolidated Statement of Operations. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Common Stock Issuance On February 22, 2016 , the Company entered into an underwriting agreement, pursuant to which the Company sold an aggregate of 44.0 million shares of common stock at a price to the Company of $19.675 per share. On February 26, 2016 , the Company received $865.7 million in net proceeds, after deducting underwriting discounts and commissions. On March 2, 2016 , the Company sold an additional 6.6 million shares of common stock as a result of the exercise of the underwriters’ option to purchase additional shares and received $129.9 million in net proceeds. These net proceeds were used for general corporate purposes, including repaying indebtedness under the Company’s revolving credit facility and repurchasing certain of the Company's senior notes. Incentive Plans On May 1, 2014, the Company’s shareholders approved the 2014 Incentive Plan. Under the 2014 Incentive Plan, incentive and non-statutory stock options, stock appreciation rights (SARs), stock awards, cash awards and performance share awards may be granted to key employees, consultants and officers of the Company. Non-employee directors of the Company may be granted discretionary awards under the 2014 Incentive Plan consisting of stock options or stock awards. A total of 18.0 million shares of common stock may be issued under the 2014 Incentive Plan. Under the 2014 Incentive Plan, no more than 10.0 million shares may be issued pursuant to incentive stock options. No additional awards may be granted under the 2014 Incentive Plan on or after May 1, 2024. At December 31, 2018 , approximately 13.7 million shares are available for issuance under the 2014 Incentive Plan. No additional awards will be granted under any of the Company’s prior plans, including the 2004 Incentive Plan. Awards outstanding under the 2004 Incentive Plan will remain outstanding in accordance with their original terms and conditions. Treasury Stock In August 1998, the Board of Directors authorized a share repurchase program under which the Company may purchase shares of common stock in the open market or in negotiated transactions. The timing and amount of these stock purchases are determined at the discretion of management. The Company may use the repurchased shares to fund stock compensation programs presently in existence, or for other corporate purposes. All purchases executed to date have been through open market transactions. There is no expiration date associated with the authorization to repurchase shares of the Company. During the years ended December 31, 2018 and 2017 , the Company repurchased 38.5 million shares for a total cost of $904.1 million and 5.0 million shares for a total cost of $123.7 million , respectively. During 2016 , there were no share repurchases. Since the authorization date and subsequent authorizations, the Company has repurchased 73.4 million shares, of which 20.0 million shares have been retired, for a total cost of approximately $1.4 billion . No treasury shares have been delivered or sold by the Company subsequent to the repurchase. In February 2018, the Board of Directors authorized an increase of 25.0 million shares to the Company’s share repurchase program. In July 2018, the Board of Directors authorized an additional increase of 20.0 million shares to the Company’s share repurchase program. As of December 31, 2018 , 53.4 million shares were held as treasury stock, which includes 1.4 million shares that were repurchased prior to December 31, 2018 and settled in January 2019. As of December 31, 2018 , 11.6 million shares were available for repurchase under the repurchase plan. Dividend Restrictions The Board of Directors of the Company determines the amount of future cash dividends, if any, to be declared and paid on the common stock depending on, among other things, the Company's financial condition, funds from operations, the level of its capital and exploration expenditures, and its future business prospects. None of the senior note or credit agreements in place have restricted payment provisions or other provisions limiting dividends. In January 2018, the Board of Directors approved an increase in the quarterly dividend on the Company's common stock from $0.05 per share to $0.06 per share. In October 2018, the Board of Directors approved an additional increase in the quarterly dividend on the Company's common stock from $0.06 per share to $0.07 per share . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation General Stock-based compensation expense for the years ended December 31, 2018 , 2017 and 2016 was $33.1 million , $34.0 million and $26.0 million , respectively, and is included in general and administrative expense in the Consolidated Statement of Operations. For the year ended December 31, 2018 and 2017 , the Company recorded an increase to tax expense of $0.3 million and $3.0 million , respectively, in the 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 Consolidated Balance Sheet and tax shortfalls reduced additional paid in capital to the extent they offset previously recorded windfall tax benefits. For the year ended December 31, 2016, the Company recorded a tax deficiency of $2.1 million , resulting in a reduction of the Company's windfall tax benefit that was recorded in additional paid in capital in the Consolidated Balance Sheet. The tax deficiency 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. Restricted Stock Awards Restricted stock awards are granted from time to time to employees of the Company. The fair value of restricted stock grants is based on the closing stock price on the grant date. Restricted stock awards generally vest either at the end of a three year service period or on a graded or graduated vesting basis at each anniversary date over a three or four year service period. For awards that vest at the end of the service period, expense is recognized ratably using a straight-line approach over the service period. Under the graded or graduated approach, the Company recognizes compensation cost ratably over the requisite service period, as applicable, for each separately vesting tranche as though the awards are, in substance, multiple awards. For most restricted stock awards, vesting is dependent upon the employees' continued service with the Company, with the exception of employment termination due to death, disability or retirement. If included in the grant award, the Company accelerates the vesting period for retirement-eligible employees for purposes of recognizing compensation expense in accordance with the vesting provisions of the Company's stock-based compensation programs. The Company used an annual forfeiture rate assumption of five percent to six percent for purposes of recognizing stock-based compensation expense for restricted stock awards. The annual forfeiture rates were based on the Company's actual forfeiture history for this type of award to various employee groups. The following table is a summary of restricted stock award activity: Year Ended December 31, 2018 2017 2016 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 161,450 $ 28.00 43,175 $ 33.87 49,825 $ 33.76 Granted — — 158,500 28.05 — — Vested (7,157 ) 25.17 (40,225 ) 34.49 (6,650 ) 33.02 Forfeited (4,000 ) 28.45 — — — — Outstanding at end of period (1)(2) 150,293 $ 28.12 161,450 $ 28.00 43,175 $ 33.87 __________________________________________________________________ (1) As of December 31, 2018 , the aggregate intrinsic value was $3.4 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2018 by the number of non-vested restricted stock awards outstanding. (2) As of December 31, 2018 , the weighted average remaining contractual term of non-vested restricted stock awards outstanding was 0.4 years. Compensation expense recorded for all restricted stock awards for the years ended December 31, 2018 , 2017 and 2016 was $2.8 million , $0.5 million and $0.4 million , respectively. Unamortized expense as of December 31, 2018 for all outstanding restricted stock awards was $1.1 million and will be recognized over the next 0.5 years . The total fair value of restricted stock awards that vested during 2018 , 2017 and 2016 was $0.2 million , $0.9 million and $0.2 million , respectively. Restricted Stock Units Restricted stock units are granted from time to time to non-employee directors of the Company. The fair value of the restricted stock units is based on the closing stock price on the grant date. These units vest immediately and compensation expense is recorded immediately. Restricted stock units are issued when the director ceases to be a director of the Company. The following table is a summary of restricted stock unit activity: Year Ended December 31, 2018 2017 2016 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 407,563 $ 16.17 348,538 $ 15.01 425,438 $ 13.81 Granted and fully vested 82,852 23.47 59,025 23.04 69,302 20.62 Issued — — — — (146,202 ) 14.17 Forfeited — — — — — — Outstanding at end of period (1)(2) 490,415 $ 17.41 407,563 $ 16.17 348,538 $ 15.01 _______________________________________________________________________________ (1) As of December 31, 2018 , the aggregate intrinsic value was $11.0 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2018 by the number of outstanding restricted stock units. (2) Due to the immediate vesting of the units and the unknown term of each director, the weighted-average remaining contractual term in years has not been provided. Compensation expense recorded for all restricted stock units for the year ended December 31, 2018 , 2017 and 2016 was $1.9 million, $1.4 million and $1.4 million , respectively, which reflects the total fair value of these units. Stock Appreciation Rights Stock appreciation rights (SARs) allow the employee to receive any intrinsic value over the grant date market price that may result from the price appreciation of the common shares granted. All of these awards have graded-vesting features and vest over a service period of three years , with one-third of the award becoming exercisable each year on the anniversary date of the grant and have a contractual term of seven years . The Company no longer grants SARs to employees. The following table is a summary of SAR activity: Year Ended December 31, 2018 2017 2016 Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Outstanding at beginning of period 57,144 $ 17.59 483,286 $ 13.04 558,546 $ 12.52 Granted — — — — — — Exercised (57,144 ) 17.59 (426,142 ) 12.43 (75,260 ) 9.19 Forfeited or expired — — — — — — Outstanding at end of period (1) — $ — 57,144 $ 17.59 483,286 $ 13.04 Exercisable at end of period (2) — $ — 57,144 $ 17.59 483,286 $ 13.04 The expected term was derived by reviewing minimum and maximum expected term outputs from the Black-Scholes model based on award type and employee type. This term represents the period of time that awards granted are expected to be outstanding. The stock price volatility was calculated using historical closing stock price data for the Company for the period associated with the expected term through the grant date of each award. The risk free rate of return percentages are based on the continuously compounded equivalent of the U.S. Treasury within the expected term as measured on the grant date. The expected dividend percentage assumes that the Company will continue to pay a consistent level of dividend each quarter. Performance Share Awards The Company grants three types of performance share awards: two based on performance conditions measured against the Company's internal performance metrics (Employee Performance Share Awards and Hybrid Performance Share Awards) and one based on market conditions measured based on the Company's performance relative to a predetermined peer group (TSR Performance Share Awards). The performance period for these awards commences on January 1 of the respective year in which the award was granted and extends over a three -year performance period. For all performance share awards, the Company used an annual forfeiture rate assumption ranging from zero percent to six percent 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 percent of the award in shares of common stock. Employee Performance Share Awards. The Employee Performance Share Awards vest at the end of the three -year performance period. An employee will earn one-third of the award for each of the three performance metrics that the Company meets . These performance metrics are set by the Company's Compensation Committee and are based on the Company's average production, average finding costs and average reserve replacement over a three -year performance period. Based on the Company's probability assessment at December 31, 2018 , it is considered probable that all of the criteria for these awards will be met. The following table is a summary of activity for Employee Performance Share Awards: Year Ended December 31, 2018 2017 2016 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 1,095,970 $ 23.31 993,530 $ 27.26 925,590 $ 30.23 Granted 531,670 23.25 406,460 22.60 435,990 20.49 Issued and fully vested (315,970 ) 27.71 (225,780 ) 39.43 (340,960 ) 26.62 Forfeited (31,649 ) 22.33 (78,240 ) 23.20 (27,090 ) 27.77 Outstanding at end of period 1,280,021 $ 22.22 1,095,970 $ 23.31 993,530 $ 27.26 Hybrid Performance Share Awards. The Hybrid Performance Share Awards have a three -year graded performance period. The awards vest 25 percent on each of the first and second anniversary dates and 50 percent on the third anniversary provided that the Company has $100 million or more of operating cash flow for the year preceding the vesting date, as set by the Company's Compensation Committee. If the Company does not meet the performance metric for the applicable period, then the portion of the performance shares that would have been issued on that anniversary date will be forfeited. Based on the Company's probability assessment at December 31, 2018 , it is considered probable that the criteria for these awards will be met. The following table is a summary of activity for the Hybrid Performance Share Awards: Year Ended December 31, 2018 2017 2016 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 574,354 $ 22.72 479,784 $ 25.12 372,385 $ 30.37 Granted 321,720 23.25 272,920 22.60 271,938 20.49 Issued and fully vested (233,686 ) 24.12 (178,350 ) 29.01 (164,539 ) 29.34 Forfeited — — — — — — Outstanding at end of period 662,388 $ 22.48 574,354 $ 22.72 479,784 $ 25.12 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 percent of the award in shares of common stock and the right to receive up to an additional 100 percent of the value of the award in excess of the equity component in cash. The equity portion of these awards is valued on the grant date and is not marked to market, while the liability portion of the awards is valued as of the end of each reporting period on a mark-to-market basis. The Company calculates the fair value of the equity and liability portions of the awards using a Monte Carlo simulation model. TSR Performance Share Awards. The TSR Performance Share Awards granted are earned, or not earned, based on the comparative performance of the Company's common stock measured against a predetermined group of companies in the Company's peer group over a three -year performance period. The following table is a summary of activity for the TSR Performance Share Awards: Year Ended December 31, 2018 2017 2016 Shares Weighted- Average Grant Date Fair Value per Share (1) Shares Weighted- Average Grant Date Fair Value per Share (1) Shares Weighted- Average Grant Date Fair Value per Share (1) Outstanding at beginning of period 1,109,708 $ 19.23 885,213 $ 21.62 732,286 $ 23.82 Granted 482,581 19.92 409,380 19.85 407,907 18.57 Issued and fully vested (292,421 ) 19.29 (157,147 ) 32.04 (254,980 ) 23.06 Forfeited — — (27,738 ) 32.04 — — Outstanding at end of period 1,299,868 $ 19.47 1,109,708 $ 19.23 885,213 $ 21.62 _______________________________________________________________________________ (1) The grant date fair value figures in this table represent the fair value of the equity component of the performance share awards. The current portion of the liability, included in accrued liabilities in the Consolidated Balance Sheet at December 31, 2018 and 2017 was $5.0 million and $3.3 million , respectively. The non-current portion of the liability for the TSR Performance Share Awards, included in other liabilities in the Consolidated Balance Sheet at December 31, 2018 and 2017 , was $7.9 million and $6.6 million , respectively. The Company made cash payments during the years ended December 31, 2018 and 2016 of $3.3 million and $1.8 million , respectively. There were no cash payments made during the year ended December 31, 2017 . The following assumptions were used to determine the grant date fair value of the equity component of the TSR Performance Share Awards for the respective periods: Year Ended December 31, 2018 2017 2016 Fair value per performance share award granted during the period $ 19.92 $ 19.85 $ 18.57 Assumptions Stock price volatility 37.3 % 37.8 % 34.4 % Risk free rate of return 2.4 % 1.4 % 0.9 % The following assumptions were used to determine the fair value of the liability component of the TSR Performance Share Awards for the respective periods: December 31, 2018 2017 2016 Fair value per performance share award at the end of the period $15.15 - $20.12 $13.23 - $21.64 $5.59 - $7.10 Assumptions Stock price volatility 29.9% - 31.1% 29.1% - 36.7% 40.4% - 43.0% Risk free rate of return 2.5% - 2.6% 1.8% - 1.9% 0.9% - 1.2% The stock price volatility was calculated using historical closing stock price data for the Company for the period associated with the expected term through the grant date of each award. The risk free rate of return percentages are based on the continuously compounded equivalent of the U.S. Treasury within the expected term as measured on the grant date. The expected dividend percentage assumes that the Company will continue to pay a consistent level of dividend each quarter. Other Information Compensation expense recorded for both the equity and liability components of all performance share awards for the years ended December 31, 2018 , 2017 and 2016 was $30.6 million , $29.1 million and $21.3 million , respectively. Total unamortized compensation expense related to the equity component of performance shares at December 31, 2018 was $24.7 million and will be recognized over the next 0.9 years . As of December 31, 2018 , the aggregate intrinsic value for all performance share awards was $72.5 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2018 by the number of unvested performance share awards outstanding. As of December 31, 2018 , the weighted average remaining contractual term of unvested performance share awards outstanding was approximately 1.2 years On December 31, 2018 , the performance period ended for two types of performance share awards that were granted in 2016 . For the Employee Performance Share Awards, the calculation of the three -year average of the three internal performance metrics was completed in the first quarter of 2019 and was certified by the Compensation Committee in February 2019 . As the Company achieved the three performance metrics, 389,920 shares with a grant date fair value of $7.9 million were issued in February 2019 . For the TSR Performance Share Awards, 407,907 shares with a grant date fair value of $7.6 million were issued in January 2019 based on the Company's ranking relative to a predetermined peer group. Cash payments associated with these awards in the amount of $5.0 million were also made in January 2019 due to the Company's ranking relative to the peer group. The calculation of the award payout was certified by the Compensation Committee on January 3, 2019 . Deferred Performance Shares As of December 31, 2018 , 495,774 shares of the Company's common stock representing vested performance share awards were deferred into the deferred compensation plan. During 2018 , no shares were sold out of the plan. During 2018 , a decrease to the deferred compensation liability of $3.1 million was recognized, which represents the increase in the closing price of the Company's shares held in the trust during the period. The decrease in compensation expense was included in general and administrative expense in the Consolidated Statement of Operations. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per share (EPS) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS is similarly calculated except that the common shares outstanding for the period is increased using the treasury stock method to reflect the potential dilution that could occur if outstanding stock appreciation rights were exercised and stock awards were vested at the end of the applicable period. Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive. The following is a calculation of basic and diluted weighted-average shares outstanding: Year Ended December 31, (In thousands) 2018 2017 2016 Weighted-average shares - basic 445,538 463,735 456,847 Dilution effect of stock appreciation rights and stock awards at end of period 2,030 1,816 — Weighted-average shares - diluted 447,568 465,551 456,847 The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect: Year Ended December 31, (In thousands) 2018 2017 2016 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect due to net loss — — 1,478 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method 3 28 1 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect 3 28 1,479 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows: (In thousands) Postretirement Benefits Balance at December 31, 2015 $ (365 ) Other comprehensive income (loss) before reclassifications 1,280 Amounts reclassified from accumulated other comprehensive income (loss) 70 Net current-period other comprehensive income (loss) 1,350 Balance at December 31, 2016 $ 985 Other comprehensive income (loss) before reclassifications 2,815 Amounts reclassified from accumulated other comprehensive income (loss) (1,723 ) Net current-period other comprehensive income 1,092 Balance at December 31, 2017 $ 2,077 Other comprehensive income (loss) before reclassifications 2,461 Amounts reclassified from accumulated other comprehensive income (loss) (101 ) Net current-period other comprehensive income 2,360 Balance at December 31, 2018 $ 4,437 Amounts reclassified from accumulated other comprehensive income (loss) into the Consolidated Statement of Operations were as follows: Year Ended December 31, Affected Line Item in the Consolidated Statement of Operations (In thousands) 2018 2017 2016 Postretirement benefits Amortization of prior service cost $ 709 $ 2,733 $ (111 ) General and administrative expense Total before tax 709 2,733 (111 ) Income (loss) before income taxes (162 ) (1,010 ) 41 Income tax benefit (expense) Cumulative effect of adoption of ASU 2018-02 reclassified to retained earnings (446 ) — — Retained earnings Total reclassifications for the period $ 101 $ 1,723 $ (70 ) Net income (loss) |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Additional Balance Sheet Information Certain balance sheet amounts are comprised of the following: December 31, (In thousands) 2018 2017 Accounts receivable, net Trade accounts $ 362,973 $ 215,511 Joint interest accounts 101 467 Other accounts 567 1,312 363,641 217,290 Allowance for doubtful accounts (1,238 ) (1,286 ) $ 362,403 $ 216,004 Other assets Deferred compensation plan $ 14,699 $ 14,966 Debt issuance cost 4,572 7,990 Income taxes receivable 8,165 — Other accounts 61 56 $ 27,497 $ 23,012 Accounts payable Trade accounts $ 30,033 $ 7,815 Natural gas purchases — 4,299 Royalty and other owners 61,507 39,207 Accrued transportation 50,540 51,433 Accrued capital costs 43,207 31,130 Taxes other than income 19,824 16,801 Income taxes payable 1,134 — Deposits received for asset sales — 81,500 Other accounts 35,694 5,860 $ 241,939 $ 238,045 Accrued liabilities Employee benefits $ 21,761 $ 20,645 Taxes other than income 1,472 550 Asset retirement obligations 1,000 4,952 Other accounts 994 1,294 $ 25,227 $ 27,441 Other liabilities Deferred compensation plan $ 25,780 $ 29,145 Other accounts 34,391 10,578 $ 60,171 $ 39,723 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Year Ended December 31, (In thousands) 2018 2017 2016 Cash paid for interest and income taxes Interest $ 80,069 $ 79,846 $ 86,723 Income taxes 4,635 40,626 688 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Operations | Basis of Presentation and Nature of Operations Cabot Oil & Gas Corporation and its subsidiaries (the Company) are engaged in the development, exploitation, exploration, production and marketing of natural gas, and to a lesser extent oil and NGLs, exclusively within the continental United States. The Company's exploration and development activities are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. The Company operates in one segment, natural gas and oil development, exploitation, exploration and production. The Company's oil and gas properties are managed as a whole rather than through discrete operating segments or business units. Operational information is tracked by geographic area; however, financial performance is assessed as a single enterprise and not on a geographic basis. Allocation of resources is made on a project basis across the Company's entire portfolio without regard to geographic areas. The consolidated financial statements include the accounts of the Company and its subsidiaries after eliminating all significant intercompany balances and transactions. Certain reclassifications have been made to prior year statements to conform with the current year presentation. These reclassifications have no impact on previously reported stockholders' equity, net income (loss) or cash flows. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements Revenue Recognition. In May 2014, the Financial Accounting Standards Boards (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Accounting Standards Codification (ASC) 606, as subsequently amended). ASC 606 supersedes the revenue recognition requirements in Topic 605 Revenue Recognition (ASC 605), and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASC 606 as of January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 also included the adoption and modification of other guidance, particularly the creation of ASC 340-40 on costs to obtain or fulfill contracts with customers and ASC 610-20 on gains or losses on derecognition of nonfinancial assets. ASC 340-40 provides additional capitalization, amortization and impairment guidance for certain costs associated with obtaining or fulfilling contracts subject to ASC 606. ASC 610-20 provides guidance on the measurement and recognition of gains and losses for disposals of assets that are not the outputs of ordinary activities, such as sales of fixed assets, when they are not businesses or deconsolidation of subsidiaries. The guidance in ASC 610-20 largely aligns with the guidance in ASC 606. It also supersedes most guidance on real estate sales that was contained in ASC 360-20; however, it does not apply to conveyances of oil and gas interests, which continue to be governed by guidance in ASC 932 for oil and gas extractive activities. There was no material effect from the adoption of ASC 340-40 or ASC 610-20 separate from those discussed from the adoption of ASC 606. 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 Company adopted ASU 2016-01 as of January 1, 2018. The adoption of this guidance did not have a material effect on the Company's financial position, results of operation 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 accounting guidance is either unclear or does not include specific guidance. The Company adopted this guidance effective January 1, 2018. In conjunction with the adoption, the Company made an accounting policy election to classify distributions it receives from its equity method investees using the cumulative earnings approach in which distributions received are classified as a return on investment (cash inflows from operating activities) unless the investor's cumulative distributions received less distributions received in prior periods that were determined to be returns of investment exceed cumulative equity in earnings recognized by the investor. When such an excess occurs, the current-period distribution up to this excess should be considered a return of investment (cash inflows from investing activities). The adoption of this guidance did not have a material effect on the Company's cash flows. Accumulated Other Comprehensive Income . In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which provides for the reclassification of the stranded tax effect of remeasuring deferred tax balances related to items within accumulated other comprehensive income (AOCI) to retained earnings from the U.S. enacted tax legislation referred to as the Tax Cuts and Jobs Act (the Tax Act). The amendment also includes disclosure requirements regarding an entity's accounting policy for releasing income tax effects from AOCI. The Company elected to early adopt this guidance as of January 1, 2018. The Company had $0.4 million of net stranded income tax effects in AOCI within the Consolidated Balance Sheet as a result of the lower U.S. federal corporate tax rate due to the enactment of the Tax Act. The net amount of stranded income tax effects within AOCI was determined under the portfolio approach and was derived from the deferred tax balances on the Company's post-retirement benefit plan. The adoption of the guidance resulted in the transfer of $0.4 million of net stranded income tax effects out of AOCI and into retained earnings with no impact to total stockholders' equity or results of operations. Recently Issued Accounting Pronouncements Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new lease guidance supersedes Topic 840. The core principle of the guidance is that entities 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. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides entities with an optional transition method that permits an entity to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. 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 plans to adopt this guidance effective January 1, 2019 by applying the optional transition approach as of the beginning of the period of adoption. Comparative periods, including the disclosures related to those periods, will not be restated. The Company plans to make use of the following practical expedients which are provided in the leases standard: • an election not to apply the recognition requirements in the leases standard to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that the Company is reasonably certain to exercise); • a package of practical expedients to not reassess whether a contract is or contains a lease, lease classification and initial direct costs; • a practical expedient to use hindsight when determining the lease term; • a practical expedient that permits combining lease and non-lease components in a contract and accounting for the combination as a lease (elected by asset class); and • a practical expedient to not reassess certain land easements in existence prior to January 1, 2019. On the adoption date, the Company expects to recognize a right of use asset for operating leases and an operating lease liability of between $40.0 million and $60.0 million , representing the present value of the minimum payment obligations associated with office leases, drilling rig commitments, surface use agreements and other leases. The Company does not expect the adoption of this guidance to have a material effect on its results of operations or cash flows. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid short-term investments with a maturity of three months or less and deposits in money market funds that are readily convertible to cash to be cash equivalents. Cash and cash equivalents were primarily concentrated in one financial institution at December 31, 2018 . The Company periodically assesses the financial condition of its financial institutions and considers any possible credit risk to be minimal. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company records an allowance for doubtful accounts for receivables that the Company determines to be uncollectible based on the specific identification method. |
Inventories | Inventories Inventories are comprised of tubular goods and well equipment and are carried at average cost. |
Equity Method Investments | Equity Method Investments The Company accounts for its investments in entities over which the Company has significant influence, but not control, using the equity method of accounting. Under the equity method of accounting, the Company increases its investment for contributions made and records its proportionate share of net earnings, declared dividends and partnership distributions based on the most recently available financial statements of the investee. The Company records the activity for its equity method investments on a one month lag. In addition, the Company evaluates its equity method investments for potential impairment whenever events or changes in circumstances indicate that there is a decline in the value of the investment. |
Properties and Equipment | Properties and Equipment The Company uses the successful efforts method of accounting for oil and gas producing activities. Under this method, acquisition costs for proved and unproved properties are capitalized when incurred. Exploration costs, including geological and geophysical costs, the costs of carrying and retaining unproved properties and exploratory dry hole drilling costs, are expensed. Development costs, including the costs to drill and equip development wells and successful exploratory drilling costs to locate proved reserves are capitalized. Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves. The determination is based on a process which relies on interpretations of available geologic, geophysical, and engineering data. If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well. If a well is determined to be unsuccessful, the capitalized drilling costs will be charged to exploration expense in the Consolidated Statement of Operations in the period the determination is made. If an exploratory well requires a major capital expenditure before production can begin, the cost of drilling the exploratory well will continue to be carried as an asset pending determination of whether reserves have been found only as long as: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well if the required capital expenditure is made and (ii) drilling of an additional exploratory well is under way or firmly planned for the near future. If drilling in the area is not under way or firmly planned, or if the well has not found a commercially producible quantity of reserves, the exploratory well is assumed to be impaired and its costs are charged to exploration expense. Development costs of proved oil and gas properties, including estimated dismantlement, restoration and abandonment costs and acquisition costs, are depreciated and depleted on a field basis by the units-of-production method using proved developed and proved reserves, respectively. Properties related to gathering and pipeline systems and equipment are depreciated using the straight-line method based on estimated useful lives ranging from 10 to 25 years. Buildings are depreciated on a straight-line basis over 25 to 40 years. Certain other assets are depreciated on a straight-line basis over 3 to 10 years. Costs of sold or abandoned properties that make up a part of an amortization base (partial field) remain in the amortization base if the units-of-production rate is not significantly affected. If significant, a gain or loss, if any, is recognized and the sold or abandoned properties are retired. A gain or loss, if any, is also recognized when a group of proved properties (entire field) that make up the amortization base has been retired, abandoned or sold. The Company evaluates its proved oil and gas properties for impairment whenever events or changes in circumstances indicate an asset's carrying amount may not be recoverable. The Company compares expected undiscounted future cash flows to the net book value of the asset. If the future undiscounted expected cash flows, based on estimates of future commodity prices, operating costs and anticipated production from proved reserves and risk-adjusted probable and possible reserves, are lower than the net book value of the asset, the capitalized cost is reduced to fair value. Commodity pricing is estimated by using a combination of assumptions management uses in its budgeting and forecasting process as well as historical and current prices adjusted for geographical location and quality differentials, as well as other factors that management believes will impact realizable prices. Fair value is calculated by discounting the future cash flows. The discount factor used is based on rates utilized by market participants that are commensurate with the risks inherent in the development and production of the underlying natural gas and oil. Unproved oil and gas properties are assessed periodically for impairment on an aggregate basis through periodic updates to the Company's undeveloped acreage amortization based on past drilling and exploration experience, the Company's expectation of converting leases to held by production and average property lives. Average property lives are determined on a geographical basis and based on the estimated life of unproved property leasehold rights. During 2018 , 2017 and 2016 , amortization associated with the Company's unproved properties was $82.3 million , $52.8 million and $25.0 million , respectively, and is included in depreciation, depletion, and amortization in the Consolidated Statement of Operations. |
Asset Retirement Obligations | Asset Retirement Obligations The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset. The asset retirement costs are depreciated using the units-of-production method. At December 31, 2018 , there were no assets legally restricted for purposes of settling asset retirement obligations. Additional retirement obligations increase the liability associated with new oil and gas wells and other facilities as these obligations are incurred. Accretion expense is included in depreciation, depletion and amortization expense in the Consolidated Statement of Operations. |
Derivative Instruments and Hedging Activities | Derivative Instruments The Company enters into financial derivative contracts, primarily swaps, collars and basis swaps, to manage its exposure to price fluctuations on a portion of its anticipated future production volumes. The Company’s credit agreement restricts the ability of the Company to enter into commodity derivatives other than to hedge or mitigate risks to which the Company has actual or projected exposure or as permitted under the Company’s risk management policies and where such derivatives do not subject the Company to material speculative risks. All of the Company’s derivatives are used for risk management purposes and are not held for trading purposes. We have elected not to designate our financial derivative instruments as accounting hedges under the accounting guidance. The Company evaluates all of its physical purchase and sale contracts to determine if they meet the definition of a derivative. For contracts that meet the definition of a derivative, the Company may elect the normal purchase normal sale (NPNS) exception provided under the accounting guidance and account for the contract using the accrual method of accounting. Contracts that do not qualify for or for which the Company elects not to apply the NPNS exception are accounted for at fair value. All derivatives, except for derivatives that qualify for the NPNS exception, are recognized on the balance sheet and are measured at fair value. At the end of each quarterly period, these derivatives are marked to market. As a result, changes in the fair value of derivatives are recognized in operating revenues in gain (loss) on derivative instruments. The resulting cash flows are reported as cash flows from operating activities. |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The Company follows the authoritative accounting guidance for measuring fair value of assets and liabilities in its financial statements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. The Company is able to classify fair value balances based on the observability of these inputs. The authoritative guidance for fair value measurements establishes three levels of the fair value hierarchy, defined as follows: • Level 1: Unadjusted, quoted prices for identical assets or liabilities in active markets. • Level 2: Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly for substantially the full term of the asset or liability. • Level 3: Significant, unobservable inputs for use when little or no market data exists, requiring a significant degree of judgment. The hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. Depending on the particular asset or liability, input availability can vary depending on factors such as product type, longevity of a product in the market and other particular transaction conditions. In some cases, certain inputs used to measure fair value may be categorized into different levels of the fair value hierarchy. For disclosure purposes under the accounting guidance, the lowest level that contains significant inputs used in the valuation should be chosen. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers, and the related guidance in ASC 340-40 (the new revenue standard), and related guidance on gains and losses on derecognition of nonfinancial assets ASC 610-20, using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Under the modified retrospective method, the Company recognizes the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings; however, no significant adjustment was required as a result of adopting the new revenue standard. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard. The comparative information has not been restated and continues to be reported under the historic accounting standards in effect for those periods. The impact of the adoption of the new revenue standard is expected to be immaterial to the Company’s net income on an ongoing basis. The Company’s revenue is typically generated from contracts to sell natural gas, crude oil or NGLs produced from interests in oil and gas properties owned by the Company. These contracts generally require the Company to deliver a specific amount of a commodity per day for a specified number of days at a price that is either fixed or variable. The contracts specify a delivery point which represents the point at which control of the product is transferred to the customer. These contracts frequently meet the definition of a derivative under ASC 815, and are accounted for as derivatives unless the Company elects to treat them as normal sales as permitted under that guidance. The Company typically elects to treat contracts to sell oil and gas production as normal sales, which are then accounted for as contracts with customers. The Company has determined that these contracts represent multiple performance obligations which are satisfied when control of the commodity transfers to the customer, typically through the delivery of the specified commodity to a designated delivery point. Revenue is measured based on consideration specified in the contract with the customer, and excludes any amounts collected on behalf of third parties. The Company recognizes revenue in the amount that reflects the consideration it expects to be entitled to in exchange for transferring control of those goods to the customer. The contract consideration in the Company’s variable price contracts are typically allocated to specific performance obligations in the contract according to the price stated in the contract. Amounts allocated in the Company’s fixed price contracts are based on the standalone selling price of those products in the context of long-term, fixed price contracts, which generally approximates the contract price. Payment is generally received one or two months after the sale has occurred. Gain or loss on derivative instruments is outside the scope of ASC 606 and is not considered revenue from contracts with customers subject to ASC 606. The Company may use financial or physical contracts accounted for as derivatives as economic hedges to manage price risk associated with normal sales, or in limited cases may use them for contracts the Company intends to physically settle but do not meet all of the criteria to be treated as normal sales. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, and that are collected by the Company from a customer, are excluded from revenue. Producer Gas Imbalances. The Company applies the sales method of accounting for natural gas revenue. Under this method, revenues are recognized based on the actual volume of natural gas sold to purchasers. Natural gas production operations may include joint owners who take more or less than the production volumes entitled to them on certain properties. Production volume is monitored to minimize these natural gas imbalances. Under this method, a natural gas imbalance liability is recorded if the Company's excess takes of natural gas exceed its estimated remaining proved developed reserves for these properties at the actual price realized upon the gas sale. A receivable is recognized only to the extent an imbalance cannot be recouped from the reserves in the underlying properties. The Company’s aggregate imbalance positions at December 31, 2018 and 2017 were not material. Brokered Natural Gas. Revenues and expenses related to brokered natural gas are reported gross as part of operating revenues and operating expenses in accordance with applicable accounting standards. The Company buys and sells natural gas utilizing separate purchase and sale transactions whereby the Company or the counterparty obtains control of the natural gas purchased or sold. Disaggregation of Revenue. The following table presents revenues disaggregated by product: Year Ended December 31, (In thousands) 2018 2017 (1) 2016 (1) OPERATING REVENUES Natural gas $ 1,881,150 $ 1,506,078 $ 1,022,590 Crude oil and condensate 48,722 212,338 151,106 Brokered natural gas 209,530 17,217 13,569 Other 4,314 11,660 7,362 Total revenues from contracts with customers 2,143,716 1,747,293 1,194,627 Gain (loss) on derivative instruments 44,432 16,926 (38,950 ) Total operating revenues $ 2,188,148 $ 1,764,219 $ 1,155,677 _______________________________________________________________________________ (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. All of the Company’s revenues from contracts with customers represent products transferred at a point in time as control is transferred to the customer and are generated in the United States. Transaction Price Allocated to Remaining Performance Obligations. A significant number of the Company’s product sales are short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. As of December 31, 2018 , the Company has $10.1 billion of unsatisfied performance obligations related to natural gas sales that have a fixed pricing component and a contract term greater than one year. The Company expects to recognize these obligations over periods ranging from 5 to 20 years. Contract Balances. Receivables from contracts with customers are recorded when the right to consideration becomes unconditional, generally when control of the product has been transferred to the customer. Receivables from contracts with customers were $363.0 million and $215.5 million as of December 31, 2018 and 2017 , respectively, and are reported in accounts receivable, net on the Consolidated Balance Sheet. The Company currently has no assets or liabilities related to its revenue contracts, including no upfront or rights to deficiency payments. Practical Expedients. The Company has made use of certain practical expedients in adopting the new revenue standard, including the value of unsatisfied performance obligations are not disclosed for (i) contracts with an original expected length of one year or less, (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice, (iii) contracts with variable consideration which is allocated entirely to a wholly unsatisfied performance obligation and meets the variable allocation criteria in the standard and (iv) only contracts that are not completed at transition. The Company has not adjusted the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the estimated future tax consequences attributable to the differences between the financial carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. The Company follows the “equity first” approach when applying the limitation for certain executive compensation in excess of $1 million to future compensation. The limitation is first applied to stock-based compensation that vests in future tax years before considering cash compensation paid in a future period. Accordingly, the Company records a deferred tax asset for stock-based compensation expense recorded in the current period, and reverses the temporary difference in the future period, during which the stock-based compensation becomes deductible for tax purposes. The Company is required to make judgments, including estimating reserves for potential adverse outcomes regarding tax positions that the Company has taken. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return. The tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination by taxing authorities based on technical merits of the position. The amount of the tax benefit recognized is the largest amount of the benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. The effective tax rate and the tax basis of assets and liabilities reflect management's estimates of the ultimate outcome of various tax uncertainties. The Company recognizes accrued interest related to uncertain tax positions in interest expense and accrued penalties related to such positions in general and administrative expense in the Consolidated Statement of Operations. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation under the fair value method of accounting. Under this method, compensation cost is measured at the grant date for equity-classified awards and remeasured each reporting period for liability-classified awards based on the fair value of an award and is recognized over the service period, which is generally the vesting period. To calculate fair value, the Company uses either a Monte Carlo or Black-Scholes valuation model depending on the specific provisions of the award. Stock-based compensation cost for all types of awards is included in general and administrative expense in the Consolidated Statement of Operations. Effective January 1, 2017, the Company adopted ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires the Company to record excess tax benefits and tax deficiencies on stock-based compensation in the income statement upon vesting of the respective awards. Prior to the adoption of ASU 2016-09, excess benefits were recorded in additional paid-in capital in the Consolidated Balance Sheet and tax deficiencies reduced additional paid-in capital to the extent they offset previously recorded tax benefits. As a result of the adoption of ASU 2016-09, excess tax benefits and tax deficiencies are included in cash flows from operating activities. Cash paid by the Company when directly withholding shares from employee stock-based compensation awards for tax-withholding purposes are classified as financing activities in the Consolidated Statement of Cash Flow. |
Environmental Matters | Environmental Matters Environmental expenditures are expensed or capitalized, as appropriate, depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations, and that do not have future economic benefit are expensed. Liabilities related to future costs are recorded on an undiscounted basis when environmental assessments and/or remediation activities are probable and the costs can be reasonably estimated. Any insurance recoveries are recorded as assets when received. |
Credit and Concentration Risk | Credit and Concentration Risk Substantially all of the Company's accounts receivable result from the sale of natural gas and oil and joint interest billings to third parties in the oil and gas industry. This concentration of purchasers and joint interest owners may impact the Company's overall credit risk, either positively or negatively, in that these entities may be similarly affected by changes in economic or other conditions. The Company does not anticipate any material impact on its financial results due to non-performance by the third parties. |
Use of Estimates | Use of Estimates In preparing financial statements, the Company follows accounting principles generally accepted in the United States. These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The most significant estimates pertain to proved natural gas and oil reserves and related cash flow estimates which are used to compute depreciation, depletion and amortization and impairments of proved oil and gas properties. Other significant estimates include natural gas and oil revenues and expenses, fair value of derivative instruments, estimates of expenses related to legal, environmental and other contingencies, asset retirement obligations, postretirement obligations, stock-based compensation and deferred income taxes. Actual results could differ from those estimates. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table presents revenues disaggregated by product: Year Ended December 31, (In thousands) 2018 2017 (1) 2016 (1) OPERATING REVENUES Natural gas $ 1,881,150 $ 1,506,078 $ 1,022,590 Crude oil and condensate 48,722 212,338 151,106 Brokered natural gas 209,530 17,217 13,569 Other 4,314 11,660 7,362 Total revenues from contracts with customers 2,143,716 1,747,293 1,194,627 Gain (loss) on derivative instruments 44,432 16,926 (38,950 ) Total operating revenues $ 2,188,148 $ 1,764,219 $ 1,155,677 _______________________________________________________________________________ (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. |
Properties and Equipment, Net (
Properties and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of net property and equipment | Properties and equipment, net are comprised of the following: December 31, (In thousands) 2018 2017 Proved oil and gas properties $ 5,717,145 $ 4,932,512 Unproved oil and gas properties 194,435 190,474 Gathering and pipeline systems 83 1,569 Land, building and other equipment 94,714 82,670 6,006,377 5,207,225 Accumulated depreciation, depletion and amortization (2,542,771 ) (2,135,021 ) $ 3,463,606 $ 3,072,204 |
Summary of Assets Held-for-sale | Balance sheet data related to the assets held for sale is as follows: (In thousands) December 31, 2017 ASSETS Inventories $ 1,440 Properties and equipment, net 778,855 780,295 LIABILITIES Accounts payable 2,352 Asset retirement obligations 15,748 18,100 Net assets held for sale $ 762,195 |
Schedule of net changes in capitalized exploratory well costs | The following table reflects the net changes in capitalized exploratory well costs: Year Ended December 31, (In thousands) 2018 2017 2016 Balance at beginning of period $ 19,511 $ — $ — Additions to capitalized exploratory well costs pending the determination of proved reserves — 19,511 — Reclassifications to wells, facilities, and equipment based on the determination of proved reserves — — — Capitalized exploratory well costs charged to expense (19,511 ) — — Balance at end of period $ — $ 19,511 $ — |
Schedule of aging of capitalized exploratory well costs | The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed: December 31, (In thousands) 2018 2017 2016 Capitalized exploratory well costs that have been capitalized for a period of one year or less $ — $ 19,511 $ — Capitalized exploratory well costs that have been capitalized for a period greater than one year — — — $ — $ 19,511 $ — |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Activity Related to Equity Method Investments | Activity related to these equity method investments is as follows: Constitution Meade Total Year Ended December 31, Year Ended December 31, Year Ended December 31, (In thousands) 2018 2017 2016 2018 2017 2016 2018 2017 2016 Balance at beginning of period $ 732 $ 96,850 $ 90,345 $ 85,345 $ 32,674 $ 13,172 $ 86,077 $ 129,524 $ 103,517 Contributions 500 4,350 8,975 76,763 52,689 19,509 77,263 57,039 28,484 Distributions — — — (1,296 ) — — (1,296 ) — — Earnings (loss) on equity method investments (1,232 ) (100,468 ) (2,470 ) 2,369 (18 ) (7 ) 1,137 (100,486 ) (2,477 ) Balance at end of period $ — $ 732 $ 96,850 $ 163,181 $ 85,345 $ 32,674 $ 163,181 $ 86,077 $ 129,524 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt and credit agreements | The notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 245,000,000 10 years July 2018 6.44 % Tranche 2 $ 100,000,000 12 years July 2020 6.54 % Tranche 3 $ 80,000,000 15 years July 2023 6.69 % The Company's debt and credit agreements consisted of the following: December 31, (In thousands) 2018 2017 Total debt 6.51% weighted-average senior notes (1) $ 124,000 $ 361,000 9.78% senior notes (2) — 67,000 5.58% weighted-average senior notes 175,000 175,000 3.65% weighted-average senior notes 925,000 925,000 Revolving credit facility 7,000 — Unamortized debt issuance costs (4,896 ) (6,109 ) $ 1,226,104 $ 1,521,891 _______________________________________________________________________________ (1) Includes $237.0 million of current portion of long-term debt at December 31, 2017 . (2) Includes $67.0 million of current portion of long-term debt at December 31, 2017 . The notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 88,000,000 10 years January 2021 5.42 % Tranche 2 $ 25,000,000 12 years January 2023 5.59 % Tranche 3 $ 62,000,000 15 years January 2026 5.80 % The notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 100,000,000 7 years September 2021 3.24 % Tranche 2 $ 575,000,000 10 years September 2024 3.67 % Tranche 3 $ 250,000,000 12 years September 2026 3.77 % |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding commodity derivatives | As of December 31, 2018 , the Company had the following outstanding financial commodity derivatives: Swaps Basis Swaps Type of Contract Volume (Mmbtu) Contract Period Weighted- Average ($/Mmbtu) Weighted- Average ($/Mmbtu) Natural gas (IFERC TRANSCO Z6 non-NY) 10,950,000 Jan. 2019 - Dec. 2019 $ 0.41 Natural gas (IFERC TRANSCO Z6 non-NY) 11,700,000 Jan. 2019 - Mar. 2019 $ 7.38 Natural gas (IFERC TRANSCO Leidy Line Receipts) 54,750,000 Jan. 2019 - Dec. 2019 $ (0.53 ) Natural gas (NYMEX) 4,500,000 Jan. 2019 - Mar. 2019 $ 4.31 Natural gas (NYMEX) 10,700,000 Apr. 2019 - Oct. 2019 $ 2.75 Natural gas (NYMEX) 109,500,000 Jan. 2019 - Dec. 2019 $ 3.13 In early 2019, we entered into the following financial commodity derivative contracts: Swaps Type of Contract Volume (Mmbtu) Contract Period Weighted- Average ($/Mmbtu) Natural gas (NYMEX) 42,800,000 Apr. 2019 - Oct. 2019 $ 2.86 |
Effect of Derivative Instruments on the Consolidated Balance Sheet | Effect of Derivative Instruments on the Consolidated Balance Sheet Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities December 31, December 31, (In thousands) Balance Sheet Location 2018 2017 2018 2017 Commodity contracts Derivative instruments (current) $ 57,665 $ — $ — $ 30,637 Commodity contracts Derivative instruments (non-current) — 2,239 — — $ 57,665 $ 2,239 $ — $ 30,637 |
Schedule of offsetting of derivative liabilities in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet December 31, (In thousands) 2018 2017 Derivative assets Gross amounts of recognized assets $ 60,105 $ 2,239 Gross amounts offset in the statement of financial position (2,440 ) — Net amounts of assets presented in the statement of financial position 57,665 2,239 Gross amounts of financial instruments not offset in the statement of financial position — — Net amount $ 57,665 $ 2,239 Derivative liabilities Gross amounts of recognized liabilities $ 2,440 $ 30,637 Gross amounts offset in the statement of financial position (2,440 ) — Net amounts of liabilities presented in the statement of financial position — 30,637 Gross amounts of financial instruments not offset in the statement of financial position — 241 Net amount $ — $ 30,878 |
Schedule of offsetting of derivative assets in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet December 31, (In thousands) 2018 2017 Derivative assets Gross amounts of recognized assets $ 60,105 $ 2,239 Gross amounts offset in the statement of financial position (2,440 ) — Net amounts of assets presented in the statement of financial position 57,665 2,239 Gross amounts of financial instruments not offset in the statement of financial position — — Net amount $ 57,665 $ 2,239 Derivative liabilities Gross amounts of recognized liabilities $ 2,440 $ 30,637 Gross amounts offset in the statement of financial position (2,440 ) — Net amounts of liabilities presented in the statement of financial position — 30,637 Gross amounts of financial instruments not offset in the statement of financial position — 241 Net amount $ — $ 30,878 |
Effect of Derivative Instruments on the Consolidated Statement of Operations | Effect of Derivative Instruments on the Consolidated Statement of Operations Year Ended December 31, (In thousands) 2018 2017 2016 Cash received (paid) on settlement of derivative instruments Gain (loss) on derivative instruments $ (41,631 ) $ 8,056 $ (1,682 ) Non-cash gain (loss) on derivative instruments Gain (loss) on derivative instruments 86,063 8,870 (37,268 ) $ 44,432 $ 16,926 $ (38,950 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 $ 14,699 $ — $ — $ 14,699 Derivative instruments — 35,689 24,416 60,105 Total assets $ 14,699 $ 35,689 $ 24,416 $ 74,804 Liabilities Deferred compensation plan $ 25,780 $ — $ — $ 25,780 Derivative instruments — — 2,440 2,440 Total liabilities $ 25,780 $ — $ 2,440 $ 28,220 (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2017 Assets Deferred compensation plan $ 14,966 $ — $ — $ 14,966 Derivative instruments — — 2,239 2,239 Total assets $ 14,966 $ — $ 2,239 $ 17,205 Liabilities Deferred compensation plan $ 29,145 $ — $ — $ 29,145 Derivative instruments — — 30,637 30,637 Total liabilities $ 29,145 $ — $ 30,637 $ 59,782 |
Fair Value of Financial Assets and Liabilities Classified as Level 3 | The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: Year Ended December 31, (In thousands) 2018 2017 2016 Balance at beginning of period $ (28,398 ) $ (15,868 ) $ — Total gain (loss) included in earnings 31,184 (1,866 ) (17,886 ) Settlement (gain) loss 19,190 (10,664 ) 2,018 Transfers in and/or out of Level 3 — — — Balance at end of period $ 21,976 $ (28,398 ) $ (15,868 ) Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ 19,732 $ (28,398 ) $ (15,868 ) |
Carrying amounts and fair values of long-term debt | The carrying amount and fair value of debt is as follows : December 31, 2018 December 31, 2017 (In thousands) Carrying Amount Estimated Fair Value Carrying Estimated Fair Value Long-term debt $ 1,226,104 $ 1,202,994 $ 1,521,891 $ 1,527,624 Current maturities — — (304,000 ) (312,055 ) Long-term debt, excluding current maturities $ 1,226,104 $ 1,202,994 $ 1,217,891 $ 1,215,569 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Activity related to the Company's asset retirement obligations is as follows: (In thousands) Year Ended December 31, 2018 Balance at beginning of period (1) $ 48,553 Liabilities incurred 5,152 Liabilities settled (1,035 ) Liabilities divested (3,809 ) Accretion expense 2,541 Transferred from held for sale 220 Balance at end of period (2) $ 51,622 _______________________________________________________________________________ (1) Includes $5.0 million of current asset retirement obligations included in accrued liabilities at December 31, 2017 . (2) Includes $1.0 million of current asset retirement obligations included in accrued liabilities at December 31, 2018 . |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum obligations under transportation and gathering agreements | As of December 31, 2018 , the Company's future minimum obligations under transportation and gathering agreements are as follows: (In thousands) 2019 $ 100,703 2020 145,997 2021 159,286 2022 159,286 2023 142,943 Thereafter 954,740 $ 1,662,955 |
Future minimum rental commitments under non-cancelable leases | Future minimum rental commitments under non-cancelable leases in effect at December 31, 2018 are as follows: (In thousands) 2019 $ 5,571 2020 5,684 2021 4,777 2022 1,659 2023 1,691 Thereafter 2,852 $ 22,234 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of income tax benefit | Income tax expense (benefit) is summarized as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Current Federal $ (95,191 ) $ (9,531 ) $ (9,920 ) State 6,682 1,816 (1,848 ) (88,509 ) (7,715 ) (11,768 ) Deferred Federal 230,643 (313,938 ) (218,357 ) State (1,040 ) (7,175 ) (12,350 ) 229,603 (321,113 ) (230,707 ) Income tax expense (benefit) $ 141,094 $ (328,828 ) $ (242,475 ) |
Schedule of reconciliation of actual provision for income taxes and provision for income taxes computed by applying the statutory federal income tax rate | Income tax expense (benefit) was different than the amounts computed by applying the statutory federal income tax rate as follows: Year Ended December 31, 2018 2017 2016 (In thousands, except rates) Amount Rate Amount Rate Amount Rate Computed "expected" federal income tax $ 146,609 21.00 % $ (79,952 ) 35.00 % $ (230,860 ) 35.00 % State income tax, net of federal income tax benefit 11,850 1.70 % (4,239 ) 1.86 % (10,888 ) 1.65 % Deferred tax adjustment related to change in overall state tax rate (15,208 ) (2.18 )% (48 ) 0.02 % (663 ) 0.10 % Valuation allowance 8,975 1.29 % (505 ) 0.22 % 221 (0.03 )% Provision to return adjustments (1,773 ) (0.25 )% (3,242 ) 1.42 % (121 ) 0.02 % Excess stock compensation 327 0.05 % 2,965 (1.30 )% — — % Tax Act (11,367 ) (1.63 )% (242,875 ) 106.32 % — — % Other, net 1,681 0.24 % (932 ) 0.41 % (164 ) 0.02 % Income tax expense (benefit) $ 141,094 20.21 % $ (328,828 ) 143.95 % $ (242,475 ) 36.76 % |
Schedule of deferred tax liabilities and deferred tax assets | The composition of net deferred tax liabilities is as follows: December 31, (In thousands) 2018 2017 Deferred Tax Assets Net operating losses $ 56,769 $ 207,633 Alternative minimum tax credits 114,149 208,624 Foreign tax credits 3,473 3,541 Other business credits 3,380 3,524 Derivative instruments — 6,645 Incentive compensation 17,378 15,898 Deferred compensation 5,690 6,065 Post-retirement benefits 6,799 7,265 Equity method investments 20,746 21,812 Capital loss carryforward 8,877 — Other 2,957 492 Less: valuation allowance (14,943 ) (16,711 ) Total 225,275 464,788 Deferred Tax Liabilities Properties and equipment 670,704 691,818 Derivative instruments 13,168 — Total 683,872 691,818 Net deferred tax liabilities $ 458,597 $ 227,030 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Change in the projected benefit obligation, plan assets at fair value and funded status | The change in the Company's postretirement benefit obligation is as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Change in Benefit Obligation Benefit obligation at beginning of year $ 31,050 $ 37,482 $ 36,626 Service cost 1,776 1,508 2,323 Interest cost 1,172 1,097 1,498 Actuarial (gain) loss (3,165 ) 5,156 (2,846 ) Benefits paid (1,056 ) (1,204 ) (934 ) Curtailments (1) — (4,346 ) — Plan amendments — (8,643 ) 815 Benefit obligation at end of year $ 29,777 $ 31,050 $ 37,482 Change in Plan Assets Fair value of plan assets at end of year — — — Funded status at end of year $ (29,777 ) $ (31,050 ) $ (37,482 ) _______________________________________________________________________________ (1) During 2017, the Company terminated approximately 100 employees in connection with the sale of oil and gas properties located in West Virginia, Virginia and Ohio. As a result, the employees’ participation in the postretirement plan also terminated, which resulted in a remeasurement and curtailment of the postretirement benefit obligation. |
Schedule of amounts recognized in the balance sheet | Amounts recognized in the balance sheet consist of the following: December 31, (In thousands) 2018 2017 2016 Current liabilities $ 1,865 $ 1,654 $ 1,223 Long-term liabilities 27,912 29,396 36,259 $ 29,777 $ 31,050 $ 37,482 |
Schedule of amounts recognized in accumulated other comprehensive income | Amounts recognized in accumulated other comprehensive income (loss) consist of the following: December 31, (In thousands) 2018 2017 2016 Net actuarial (gain) loss $ (1,253 ) $ 1,912 $ (2,266 ) Prior service cost (4,497 ) (5,206 ) 704 $ (5,750 ) $ (3,294 ) $ (1,562 ) Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Loss) Year Ended December 31, (In thousands) 2018 2017 2016 Components of Net Periodic Postretirement Benefit Cost Service cost $ 1,776 $ 1,508 $ 2,323 Interest cost 1,172 1,097 1,498 Amortization of prior service cost (709 ) (1,183 ) 111 Net periodic postretirement cost 2,239 1,422 3,932 Recognized curtailment gain — (4,917 ) — Total post retirement cost (income) $ 2,239 $ (3,495 ) $ 3,932 Other Changes in Benefit Obligations Recognized in Other Comprehensive Income (Loss) Net (gain) loss $ (3,165 ) $ 4,178 $ (2,846 ) Prior service cost — (8,643 ) 815 Amortization of prior service cost 709 2,733 (111 ) Total recognized in other comprehensive income (2,456 ) (1,732 ) (2,142 ) Total recognized in net periodic benefit cost (income) and other comprehensive income $ (217 ) $ (5,227 ) $ 1,790 |
Assumptions to determine projected postretirement benefit obligations and postretirement costs | Assumptions used to determine projected postretirement benefit obligations and postretirement costs are as follows: December 31, 2018 2017 2016 Discount rate (1) 4.45 % 3.85 % 4.30 % Health care cost trend rate for medical benefits assumed for next year (pre-65) 7.25 % 7.50 % 7.50 % Health care cost trend rate for medical benefits assumed for next year (post-65) 5.50 % 5.75 % 5.00 % Ultimate trend rate (pre-65) 4.50 % 4.50 % 4.50 % Ultimate trend rate (post-65) 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate (pre-65) 2030 2030 2023 Year that the rate reaches the ultimate trend rate (post-65) 2023 2023 2018 _______________________________________________________________________________ (1) Represents the year end rates used to determine the projected benefit obligation. To compute postretirement cost in 2018 , 2017 and 2016 , respectively, the beginning of year discount rates of 3.85% , 3.85% and 4.25% were used. |
Effect of a one-percentage-point change in assumed health care cost trend rates | Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: (In thousands) 1-Percentage-Point Increase 1-Percentage-Point Decrease Effect on total of service and interest cost $ 668 $ (510 ) Effect on postretirement benefit obligation 4,129 (3,310 ) |
Schedule of estimated benefit payments | The following estimated benefit payments under the Company's postretirement plans, which reflect expected future service, are expected to be paid as follows: (In thousands) 2019 $ 1,907 2020 1,954 2021 1,951 2022 2,013 2023 2,012 Years 2024 - 2028 8,993 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Activity | The following table is a summary of restricted stock unit activity: Year Ended December 31, 2018 2017 2016 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 407,563 $ 16.17 348,538 $ 15.01 425,438 $ 13.81 Granted and fully vested 82,852 23.47 59,025 23.04 69,302 20.62 Issued — — — — (146,202 ) 14.17 Forfeited — — — — — — Outstanding at end of period (1)(2) 490,415 $ 17.41 407,563 $ 16.17 348,538 $ 15.01 _______________________________________________________________________________ (1) As of December 31, 2018 , the aggregate intrinsic value was $11.0 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2018 by the number of outstanding restricted stock units. (2) Due to the immediate vesting of the units and the unknown term of each director, the weighted-average remaining contractual term in years has not been provided. The following table is a summary of restricted stock award activity: Year Ended December 31, 2018 2017 2016 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 161,450 $ 28.00 43,175 $ 33.87 49,825 $ 33.76 Granted — — 158,500 28.05 — — Vested (7,157 ) 25.17 (40,225 ) 34.49 (6,650 ) 33.02 Forfeited (4,000 ) 28.45 — — — — Outstanding at end of period (1)(2) 150,293 $ 28.12 161,450 $ 28.00 43,175 $ 33.87 __________________________________________________________________ (1) As of December 31, 2018 , the aggregate intrinsic value was $3.4 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2018 by the number of non-vested restricted stock awards outstanding. (2) As of December 31, 2018 , the weighted average remaining contractual term of non-vested restricted stock awards outstanding was 0.4 years. |
Summary of SAR activity | The following table is a summary of SAR activity: Year Ended December 31, 2018 2017 2016 Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Outstanding at beginning of period 57,144 $ 17.59 483,286 $ 13.04 558,546 $ 12.52 Granted — — — — — — Exercised (57,144 ) 17.59 (426,142 ) 12.43 (75,260 ) 9.19 Forfeited or expired — — — — — — Outstanding at end of period (1) — $ — 57,144 $ 17.59 483,286 $ 13.04 Exercisable at end of period (2) — $ — 57,144 $ 17.59 483,286 $ 13.04 |
Schedule of Performance Share Awards Activity | The following table is a summary of activity for the Hybrid Performance Share Awards: Year Ended December 31, 2018 2017 2016 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 574,354 $ 22.72 479,784 $ 25.12 372,385 $ 30.37 Granted 321,720 23.25 272,920 22.60 271,938 20.49 Issued and fully vested (233,686 ) 24.12 (178,350 ) 29.01 (164,539 ) 29.34 Forfeited — — — — — — Outstanding at end of period 662,388 $ 22.48 574,354 $ 22.72 479,784 $ 25.12 The following table is a summary of activity for Employee Performance Share Awards: Year Ended December 31, 2018 2017 2016 Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Shares Weighted- Average Grant Date Fair Value per Share Outstanding at beginning of period 1,095,970 $ 23.31 993,530 $ 27.26 925,590 $ 30.23 Granted 531,670 23.25 406,460 22.60 435,990 20.49 Issued and fully vested (315,970 ) 27.71 (225,780 ) 39.43 (340,960 ) 26.62 Forfeited (31,649 ) 22.33 (78,240 ) 23.20 (27,090 ) 27.77 Outstanding at end of period 1,280,021 $ 22.22 1,095,970 $ 23.31 993,530 $ 27.26 The following table is a summary of activity for the TSR Performance Share Awards: Year Ended December 31, 2018 2017 2016 Shares Weighted- Average Grant Date Fair Value per Share (1) Shares Weighted- Average Grant Date Fair Value per Share (1) Shares Weighted- Average Grant Date Fair Value per Share (1) Outstanding at beginning of period 1,109,708 $ 19.23 885,213 $ 21.62 732,286 $ 23.82 Granted 482,581 19.92 409,380 19.85 407,907 18.57 Issued and fully vested (292,421 ) 19.29 (157,147 ) 32.04 (254,980 ) 23.06 Forfeited — — (27,738 ) 32.04 — — Outstanding at end of period 1,299,868 $ 19.47 1,109,708 $ 19.23 885,213 $ 21.62 _______________________________________________________________________________ (1) The grant date fair value figures in this table represent the fair value of the equity component of the performance share awards. |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following assumptions were used to determine the grant date fair value of the equity component of the TSR Performance Share Awards for the respective periods: Year Ended December 31, 2018 2017 2016 Fair value per performance share award granted during the period $ 19.92 $ 19.85 $ 18.57 Assumptions Stock price volatility 37.3 % 37.8 % 34.4 % Risk free rate of return 2.4 % 1.4 % 0.9 % The following assumptions were used to determine the fair value of the liability component of the TSR Performance Share Awards for the respective periods: December 31, 2018 2017 2016 Fair value per performance share award at the end of the period $15.15 - $20.12 $13.23 - $21.64 $5.59 - $7.10 Assumptions Stock price volatility 29.9% - 31.1% 29.1% - 36.7% 40.4% - 43.0% Risk free rate of return 2.5% - 2.6% 1.8% - 1.9% 0.9% - 1.2% |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted weighted-average shares outstanding | The following is a calculation of basic and diluted weighted-average shares outstanding: Year Ended December 31, (In thousands) 2018 2017 2016 Weighted-average shares - basic 445,538 463,735 456,847 Dilution effect of stock appreciation rights and stock awards at end of period 2,030 1,816 — Weighted-average shares - diluted 447,568 465,551 456,847 |
Calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect | The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect: Year Ended December 31, (In thousands) 2018 2017 2016 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect due to net loss — — 1,478 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method 3 28 1 Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect 3 28 1,479 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive income (loss) by component, net of tax | Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows: (In thousands) Postretirement Benefits Balance at December 31, 2015 $ (365 ) Other comprehensive income (loss) before reclassifications 1,280 Amounts reclassified from accumulated other comprehensive income (loss) 70 Net current-period other comprehensive income (loss) 1,350 Balance at December 31, 2016 $ 985 Other comprehensive income (loss) before reclassifications 2,815 Amounts reclassified from accumulated other comprehensive income (loss) (1,723 ) Net current-period other comprehensive income 1,092 Balance at December 31, 2017 $ 2,077 Other comprehensive income (loss) before reclassifications 2,461 Amounts reclassified from accumulated other comprehensive income (loss) (101 ) Net current-period other comprehensive income 2,360 Balance at December 31, 2018 $ 4,437 |
Schedule of amount reclassified from accumulated other comprehensive income (loss) into the Condensed Consolidated Statement of Operations | Amounts reclassified from accumulated other comprehensive income (loss) into the Consolidated Statement of Operations were as follows: Year Ended December 31, Affected Line Item in the Consolidated Statement of Operations (In thousands) 2018 2017 2016 Postretirement benefits Amortization of prior service cost $ 709 $ 2,733 $ (111 ) General and administrative expense Total before tax 709 2,733 (111 ) Income (loss) before income taxes (162 ) (1,010 ) 41 Income tax benefit (expense) Cumulative effect of adoption of ASU 2018-02 reclassified to retained earnings (446 ) — — Retained earnings Total reclassifications for the period $ 101 $ 1,723 $ (70 ) Net income (loss) |
Additional Balance Sheet Info_2
Additional Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Certain balance sheet amounts are comprised of the following: December 31, (In thousands) 2018 2017 Accounts receivable, net Trade accounts $ 362,973 $ 215,511 Joint interest accounts 101 467 Other accounts 567 1,312 363,641 217,290 Allowance for doubtful accounts (1,238 ) (1,286 ) $ 362,403 $ 216,004 Other assets Deferred compensation plan $ 14,699 $ 14,966 Debt issuance cost 4,572 7,990 Income taxes receivable 8,165 — Other accounts 61 56 $ 27,497 $ 23,012 Accounts payable Trade accounts $ 30,033 $ 7,815 Natural gas purchases — 4,299 Royalty and other owners 61,507 39,207 Accrued transportation 50,540 51,433 Accrued capital costs 43,207 31,130 Taxes other than income 19,824 16,801 Income taxes payable 1,134 — Deposits received for asset sales — 81,500 Other accounts 35,694 5,860 $ 241,939 $ 238,045 Accrued liabilities Employee benefits $ 21,761 $ 20,645 Taxes other than income 1,472 550 Asset retirement obligations 1,000 4,952 Other accounts 994 1,294 $ 25,227 $ 27,441 Other liabilities Deferred compensation plan $ 25,780 $ 29,145 Other accounts 34,391 10,578 $ 60,171 $ 39,723 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of cash paid for interest and income taxes | Year Ended December 31, (In thousands) 2018 2017 2016 Cash paid for interest and income taxes Interest $ 80,069 $ 79,846 $ 86,723 Income taxes 4,635 40,626 688 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($)CustomerInstitutionSegment | Dec. 31, 2017USD ($)Customer | Dec. 31, 2016USD ($)Customer | Jan. 01, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of operating segments | Segment | 1 | |||
Cumulative effect of adoption of ASU 2018-02 reclassified to retained earnings | $ 446,000 | |||
Unsatisfied performance obligations | $ 10,100,000,000 | |||
Number of financial institutions | Institution | 1 | |||
Amortization of unproved properties included in depreciation, depletion, and amortization | $ 82,300,000 | $ 52,800,000 | $ 25,000,000 | |
Assets legally restricted for purposes of settling asset retirement obligations | 0 | |||
Receivables from contracts with customers | 363,000,000 | 215,500,000 | ||
Concentration Risk [Line Items] | ||||
Cumulative effect of adoption of ASU 2018-02 reclassified to retained earnings | $ 446,000 | $ 0 | $ 0 | |
Minimum | ||||
Properties and Equipment | ||||
Unsatisfied performance obligations, expected period of satisfaction | 5 years | |||
Maximum | ||||
Properties and Equipment | ||||
Unsatisfied performance obligations, expected period of satisfaction | 20 years | |||
Gathering and pipeline systems and equipment | Minimum | ||||
Properties and Equipment | ||||
Estimated useful life | 10 years | |||
Gathering and pipeline systems and equipment | Maximum | ||||
Properties and Equipment | ||||
Estimated useful life | 25 years | |||
Buildings | Minimum | ||||
Properties and Equipment | ||||
Estimated useful life | 25 years | |||
Buildings | Maximum | ||||
Properties and Equipment | ||||
Estimated useful life | 40 years | |||
Other assets | Minimum | ||||
Properties and Equipment | ||||
Estimated useful life | 3 years | |||
Other assets | Maximum | ||||
Properties and Equipment | ||||
Estimated useful life | 10 years | |||
Sales Revenue, Net | Customer | ||||
Concentration Risk [Line Items] | ||||
Number of customers | Customer | 3 | 2 | 2 | |
Forecast | Minimum | ASU 2016-02 | ||||
Properties and Equipment | ||||
Operating lease liability | $ 40,000,000 | |||
Operating lease, right of use asset | 40,000,000 | |||
Forecast | Maximum | ASU 2016-02 | ||||
Properties and Equipment | ||||
Operating lease liability | 60,000,000 | |||
Operating lease, right of use asset | $ 60,000,000 | |||
Customer one | Sales Revenue, Net | Customer | ||||
Concentration Risk [Line Items] | ||||
Percentage of total sales | 20.00% | 18.00% | 19.00% | |
Customer two | Sales Revenue, Net | Customer | ||||
Concentration Risk [Line Items] | ||||
Percentage of total sales | 11.00% | 11.00% | 10.00% | |
Customer three | Sales Revenue, Net | Customer | ||||
Concentration Risk [Line Items] | ||||
Percentage of total sales | 9.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | $ 2,143,716 | $ 1,747,293 | $ 1,194,627 |
Gain (loss) on derivative instruments | 44,432 | 16,926 | (38,950) |
TOTAL OPERATING REVENUES | 2,188,148 | 1,764,219 | 1,155,677 |
Natural gas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 1,881,150 | 1,506,078 | 1,022,590 |
Crude oil and condensate | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 48,722 | 212,338 | 151,106 |
Brokered natural gas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 209,530 | 17,217 | 13,569 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | $ 4,314 | $ 11,660 | $ 7,362 |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Jul. 31, 2018 | Feb. 28, 2018 | Sep. 30, 2017 | Feb. 29, 2016 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant Acquisitions and Disposals | |||||||||||
Loss on sale of assets | $ 16,327 | $ 11,565 | $ 1,857 | ||||||||
Proceeds from sale of assets | 678,350 | 115,444 | 50,419 | ||||||||
Impairment of oil and gas properties | $ 0 | $ 482,811 | $ 435,619 | ||||||||
Oil and gas properties, proved and unproved | Haynesville Shale | |||||||||||
Significant Acquisitions and Disposals | |||||||||||
Loss on sale of assets | $ (29,700) | ||||||||||
Proceeds from sale of assets | $ 30,000 | 5,000 | |||||||||
Oil and gas properties, proved and unproved | Eagle Ford Shale | |||||||||||
Significant Acquisitions and Disposals | |||||||||||
Loss on sale of assets | $ 45,400 | ||||||||||
Proceeds from sale of assets | $ 765,000 | ||||||||||
Impairment of oil and gas properties | $ 414,300 | ||||||||||
Oil and gas properties, proved and unproved | West Virginia, Virginia, and Ohio | |||||||||||
Significant Acquisitions and Disposals | |||||||||||
Loss on sale of assets | $ 11,900 | ||||||||||
Proceeds from sale of assets | $ 41,300 | ||||||||||
Impairment of oil and gas properties | $ 68,600 | ||||||||||
Oil and gas properties, proved and unproved | East Texas | |||||||||||
Significant Acquisitions and Disposals | |||||||||||
Loss on sale of assets | $ (500) | ||||||||||
Proceeds from sale of assets | $ 56,400 | $ 6,300 |
Properties and Equipment, Net -
Properties and Equipment, Net - Components of Net Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Proved oil and gas properties | $ 5,717,145 | $ 4,932,512 |
Unproved oil and gas properties | 194,435 | 190,474 |
Gathering and pipeline systems | 83 | 1,569 |
Land, building and other equipment | 94,714 | 82,670 |
Properties and equipment, gross, total | 6,006,377 | 5,207,225 |
Accumulated depreciation, depletion and amortization | (2,542,771) | (2,135,021) |
Properties and equipment, net | $ 3,463,606 | $ 3,072,204 |
Properties and Equipment, Net_2
Properties and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Properties and Equipment | ||||||
Impairment of oil and gas properties | $ 0 | $ 482,811 | $ 435,619 | |||
Properties and equipment, net (Successful efforts method) | $ 3,072,204 | 3,463,606 | 3,072,204 | |||
South Texas, East Texas and Louisiana | ||||||
Properties and Equipment | ||||||
Impairment of oil and gas properties | $ 435,600 | |||||
Sale of oil and gas properties before closing adjustments | $ 89,200 | $ 89,200 | ||||
Assets Held-for-sale | ||||||
Properties and Equipment | ||||||
Transaction amount | 762,195 | 762,195 | ||||
Assets Held-for-sale | West Virginia, Virginia, and Ohio | ||||||
Properties and Equipment | ||||||
Impairment of oil and gas properties | $ 68,600 | |||||
Properties and equipment, net (Successful efforts method) | $ 37,900 | |||||
Assets Held-for-sale | Haynesville Shale | ||||||
Properties and Equipment | ||||||
Transaction amount | 30,000 | 30,000 | ||||
Assets Held-for-sale | Eagle Ford | ||||||
Properties and Equipment | ||||||
Transaction amount | 765,000 | $ 765,000 | ||||
Assets Held-for-sale | Eagle Ford | South Texas | ||||||
Properties and Equipment | ||||||
Impairment of oil and gas properties | $ 414,300 | |||||
Properties and equipment, net (Successful efforts method) | $ 765,600 |
Properties and Equipment, Net_3
Properties and Equipment, Net - Summary of Assets Held-for-sale (Details) - Assets Held-for-sale $ in Thousands | Dec. 31, 2017USD ($) |
ASSETS | |
Inventories | $ 1,440 |
Properties and equipment, net | 778,855 |
Assets | 780,295 |
LIABILITIES | |
Accounts payable | 2,352 |
Asset retirement obligation | 15,748 |
Liabilities | 18,100 |
Net assets | $ 762,195 |
Properties and Equipment, Net_4
Properties and Equipment, Net - Schedule of Net Changes in Capitalized Exploratory Well Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net changes in capitalized exploratory well costs | |||
Balance at beginning of period | $ 19,511 | $ 0 | $ 0 |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 0 | 19,511 | 0 |
Reclassifications to wells, facilities, and equipment based on the determination of proved reserves | 0 | 0 | 0 |
Capitalized exploratory well costs charged to expense | (19,511) | 0 | 0 |
Balance at end of period | $ 0 | $ 19,511 | $ 0 |
Properties and Equipment, Net_5
Properties and Equipment, Net - Schedule of Aging of Capitalized Exploratory Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||||
Capitalized exploratory well costs that have been capitalized for a period of one year or less | $ 0 | $ 19,511 | $ 0 | |
Capitalized exploratory well costs that have been capitalized for a period greater than one year | 0 | 0 | 0 | |
Capitalized exploratory well costs | $ 0 | $ 19,511 | $ 0 | $ 0 |
Equity Method Investments - Act
Equity Method Investments - Activity Related to Equity Method Investments (Details) - USD ($) $ in Thousands | Aug. 14, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Equity Method Investments | ||||
Balance at beginning of period | $ 86,077 | $ 129,524 | $ 103,517 | |
Contributions | 77,263 | 57,039 | 28,484 | |
Distributions | (1,296) | 0 | 0 | |
Earnings (loss) on equity method investments | 1,137 | (100,486) | (2,477) | |
Balance at end of period | 163,181 | 86,077 | 129,524 | |
Constitution Pipeline Company, LLC | ||||
Equity Method Investments | ||||
Balance at beginning of period | 732 | 96,850 | 90,345 | |
Contributions | 500 | 4,350 | 8,975 | |
Distributions | 0 | 0 | 0 | |
Earnings (loss) on equity method investments | (1,232) | (100,468) | (2,470) | |
Balance at end of period | 0 | 732 | 96,850 | |
Meade Pipeline Co LLC | ||||
Equity Method Investments | ||||
Balance at beginning of period | 85,345 | 32,674 | 13,172 | |
Contributions | $ 17,800 | 76,763 | 52,689 | 19,509 |
Distributions | (1,296) | 0 | 0 | |
Earnings (loss) on equity method investments | 2,369 | (18) | (7) | |
Balance at end of period | $ 163,181 | $ 85,345 | $ 32,674 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) | Aug. 14, 2018USD ($)decathermal / d | Dec. 31, 2018USD ($)investment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2018USD ($) | Feb. 28, 2014 | Apr. 30, 2012USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||
Number of investments | investment | 2 | ||||||
Contributions | $ 77,263,000 | $ 57,039,000 | $ 28,484,000 | ||||
Transcontinental Gas Pipe Line Company LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Entity's equity interest in construction agreement (as a percent) | 61.00% | ||||||
Firm transportation capacity | decathermal / d | 250,000 | ||||||
Constitution Pipeline Company, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest (as a percent) | 25.00% | ||||||
Contribution cap | $ 250,000,000 | ||||||
Equity method investment, difference between carrying and underlying investment | $ 95,900,000 | ||||||
Contributions | 500,000 | 4,350,000 | 8,975,000 | ||||
Meade Pipeline Co LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest (as a percent) | 20.00% | ||||||
Entity's equity interest in construction agreement (as a percent) | 39.00% | ||||||
Contributions | $ 17,800,000 | $ 76,763,000 | $ 52,689,000 | $ 19,509,000 |
Debt and Credit Agreements - Sc
Debt and Credit Agreements - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (4,896) | $ (6,109) |
Long-term debt | 1,226,104 | 1,521,891 |
Current portion of long-term debt | $ 0 | $ 304,000 |
6.51% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Weighted-average interest rate (as a percent) | 6.51% | 6.51% |
Long-term debt including unamortized debt issuance costs | $ 124,000 | $ 361,000 |
Current portion of long-term debt | $ 237,000 | |
9.78% senior notes | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 9.78% | 9.78% |
Long-term debt including unamortized debt issuance costs | $ 0 | $ 67,000 |
Current portion of long-term debt | $ 67,000 | |
5.58% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Weighted-average interest rate (as a percent) | 5.58% | 5.58% |
Long-term debt including unamortized debt issuance costs | $ 175,000 | $ 175,000 |
3.65% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Weighted-average interest rate (as a percent) | 3.65% | 3.65% |
Long-term debt including unamortized debt issuance costs | $ 925,000 | $ 925,000 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt including unamortized debt issuance costs | $ 7,000 | $ 0 |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) | Apr. 17, 2015 | May 31, 2016USD ($) | Sep. 30, 2014USD ($)InvestorTranche | Dec. 31, 2010USD ($)InvestorTranche | Jul. 31, 2008USD ($)InvestorTranche | Jun. 30, 2016USD ($) | Dec. 31, 2018USD ($)fiscal_period | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Apr. 19, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||||
2,020 | $ 87,000,000 | |||||||||
2,021 | 188,000,000 | |||||||||
2,023 | 62,000,000 | |||||||||
Repayments of debt | 455,000,000 | $ 0 | $ 587,000,000 | |||||||
Loss on repurchase of debt | 0 | 0 | $ 4,709,000 | |||||||
Deferred financing costs capitalized | $ 4,896,000 | $ 6,109,000 | ||||||||
6.51% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Weighted-average interest rate (as a percent) | 6.51% | 6.51% | ||||||||
Long-term debt including unamortized debt issuance costs | $ 124,000,000 | $ 361,000,000 | ||||||||
9.78% senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate (as a percent) | 9.78% | 9.78% | ||||||||
Long-term debt including unamortized debt issuance costs | $ 0 | $ 67,000,000 | ||||||||
5.58% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Weighted-average interest rate (as a percent) | 5.58% | 5.58% | ||||||||
Long-term debt including unamortized debt issuance costs | $ 175,000,000 | $ 175,000,000 | ||||||||
3.65% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Weighted-average interest rate (as a percent) | 3.65% | 3.65% | ||||||||
Long-term debt including unamortized debt issuance costs | $ 925,000,000 | $ 925,000,000 | ||||||||
Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Remaining borrowing capacity on line of credit | $ 1,800,000,000 | $ 1,700,000,000 | ||||||||
Minimum required asset coverage ratio | 1.75 | |||||||||
Fiscal quarters for reduction in coverage ratio | fiscal_period | 4 | |||||||||
Minimum required annual coverage ratio | 2.8 | |||||||||
Maximum borrowing capacity on line of credit | $ 3,200,000,000 | |||||||||
Minimum current ratio | 1 | |||||||||
Long-term debt including unamortized debt issuance costs | $ 7,000,000 | $ 0 | ||||||||
Interest rate during period | 6.30% | 2.30% | ||||||||
Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum required asset coverage ratio | 1.75 | |||||||||
Fiscal quarters for reduction in coverage ratio | fiscal_period | 4 | |||||||||
Minimum required annual coverage ratio | 2.8 | |||||||||
Senior Notes | 6.51% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 301,000,000 | |||||||||
Principal | $ 425,000,000 | |||||||||
Number of institutional investors | Investor | 41 | |||||||||
Number of debt tranches | Tranche | 3 | |||||||||
Senior Notes | 5.58% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 175,000,000 | |||||||||
Number of institutional investors | Investor | 8 | |||||||||
Number of debt tranches | Tranche | 3 | |||||||||
Senior Notes | 3.65% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 925,000,000 | |||||||||
Number of institutional investors | Investor | 24 | |||||||||
Number of debt tranches | Tranche | 3 | |||||||||
Minimum | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unused capacity fee percentage | 0.30% | |||||||||
Maximum | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unused capacity fee percentage | 0.50% | |||||||||
Senior Notes | 6.51% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of principal repurchased | $ 64,000,000 | |||||||||
Repayments of debt | 68,300,000 | |||||||||
Loss on repurchase of debt | $ 4,700,000 | |||||||||
Tranche 1 | Senior Notes | 6.51% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 245,000,000 | |||||||||
Term | 10 years | |||||||||
Interest rate (as a percent) | 6.44% | |||||||||
Tranche 1 | Senior Notes | 5.58% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 88,000,000 | |||||||||
Term | 10 years | |||||||||
Interest rate (as a percent) | 5.42% | |||||||||
Tranche 1 | Senior Notes | 3.65% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 100,000,000 | |||||||||
Term | 7 years | |||||||||
Interest rate (as a percent) | 3.24% | |||||||||
Tranche 1 | Senior Notes | 6.51% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of principal repurchased | 8,000,000 | |||||||||
Tranche 2 | Senior Notes | 6.51% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 100,000,000 | |||||||||
Term | 12 years | |||||||||
Interest rate (as a percent) | 6.54% | |||||||||
Tranche 2 | Senior Notes | 5.58% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 25,000,000 | |||||||||
Term | 12 years | |||||||||
Interest rate (as a percent) | 5.59% | |||||||||
Tranche 2 | Senior Notes | 3.65% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 575,000,000 | |||||||||
Term | 10 years | |||||||||
Interest rate (as a percent) | 3.67% | |||||||||
Tranche 2 | Senior Notes | 6.51% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of principal repurchased | 13,000,000 | |||||||||
Tranche 3 | Senior Notes | 6.51% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 80,000,000 | |||||||||
Term | 15 years | |||||||||
Interest rate (as a percent) | 6.69% | |||||||||
Tranche 3 | Senior Notes | 5.58% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 62,000,000 | |||||||||
Term | 15 years | |||||||||
Interest rate (as a percent) | 5.80% | |||||||||
Tranche 3 | Senior Notes | 3.65% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 250,000,000 | |||||||||
Term | 12 years | |||||||||
Interest rate (as a percent) | 3.77% | |||||||||
Tranche 3 | Senior Notes | 6.51% weighted-average senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of principal repurchased | $ 43,000,000 | |||||||||
LIBOR | Minimum | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.50% | |||||||||
LIBOR | Maximum | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.25% |
Debt and Credit Agreements - _2
Debt and Credit Agreements - Schedule of Notes Issued (Details) - Senior Notes - USD ($) | 1 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2010 | Jul. 31, 2008 | |
6.51% weighted-average senior notes | |||
Debt Instrument [Line Items] | |||
Principal | $ 425,000,000 | ||
6.51% weighted-average senior notes | Tranche 1 | |||
Debt Instrument [Line Items] | |||
Principal | $ 245,000,000 | ||
Term | 10 years | ||
Coupon (as a percent) | 6.44% | ||
6.51% weighted-average senior notes | Tranche 2 | |||
Debt Instrument [Line Items] | |||
Principal | $ 100,000,000 | ||
Term | 12 years | ||
Coupon (as a percent) | 6.54% | ||
6.51% weighted-average senior notes | Tranche 3 | |||
Debt Instrument [Line Items] | |||
Principal | $ 80,000,000 | ||
Term | 15 years | ||
Coupon (as a percent) | 6.69% | ||
5.58% weighted-average senior notes | |||
Debt Instrument [Line Items] | |||
Principal | $ 175,000,000 | ||
5.58% weighted-average senior notes | Tranche 1 | |||
Debt Instrument [Line Items] | |||
Principal | $ 88,000,000 | ||
Term | 10 years | ||
Coupon (as a percent) | 5.42% | ||
5.58% weighted-average senior notes | Tranche 2 | |||
Debt Instrument [Line Items] | |||
Principal | $ 25,000,000 | ||
Term | 12 years | ||
Coupon (as a percent) | 5.59% | ||
5.58% weighted-average senior notes | Tranche 3 | |||
Debt Instrument [Line Items] | |||
Principal | $ 62,000,000 | ||
Term | 15 years | ||
Coupon (as a percent) | 5.80% | ||
3.65% weighted-average senior notes | |||
Debt Instrument [Line Items] | |||
Principal | $ 925,000,000 | ||
3.65% weighted-average senior notes | Tranche 1 | |||
Debt Instrument [Line Items] | |||
Principal | $ 100,000,000 | ||
Term | 7 years | ||
Coupon (as a percent) | 3.24% | ||
3.65% weighted-average senior notes | Tranche 2 | |||
Debt Instrument [Line Items] | |||
Principal | $ 575,000,000 | ||
Term | 10 years | ||
Coupon (as a percent) | 3.67% | ||
3.65% weighted-average senior notes | Tranche 3 | |||
Debt Instrument [Line Items] | |||
Principal | $ 250,000,000 | ||
Term | 12 years | ||
Coupon (as a percent) | 3.77% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Outstanding Commodity Derivatives (Details) | 1 Months Ended | 12 Months Ended |
Jan. 31, 2019$ / McfBcf | Dec. 31, 2018$ / McfBcf | |
Natural gas (IFERC TRANSCO Z6 non-NY) | ||
Derivative [Line Items] | ||
Volume (Mmbtu) | Bcf | 10,950,000 | |
Natural gas (IFERC TRANSCO Z6 non-NY) | ||
Derivative [Line Items] | ||
Volume (Mmbtu) | Bcf | 11,700,000 | |
Swaps Weighted Average (in usd per Mmbtu) | $ / Mcf | 7.38 | |
Natural gas (IFERC TRANSCO Leidy Line Receipts) | ||
Derivative [Line Items] | ||
Volume (Mmbtu) | Bcf | 54,750,000 | |
Natural gas (NYMEX) | ||
Derivative [Line Items] | ||
Volume (Mmbtu) | Bcf | 4,500,000 | |
Swaps Weighted Average (in usd per Mmbtu) | $ / Mcf | 4.31 | |
Natural gas (NYMEX) | ||
Derivative [Line Items] | ||
Volume (Mmbtu) | Bcf | 10,700,000 | |
Swaps Weighted Average (in usd per Mmbtu) | $ / Mcf | 2.75 | |
Natural gas (NYMEX) | ||
Derivative [Line Items] | ||
Volume (Mmbtu) | Bcf | 109,500,000 | |
Swaps Weighted Average (in usd per Mmbtu) | $ / Mcf | 3.13 | |
Weighted Average | Natural gas (IFERC TRANSCO Z6 non-NY) | ||
Derivative [Line Items] | ||
Swaps Weighted Average (in usd per Mmbtu) | $ / Mcf | 0.41 | |
Weighted Average | Natural gas (IFERC TRANSCO Leidy Line Receipts) | ||
Derivative [Line Items] | ||
Swaps Weighted Average (in usd per Mmbtu) | $ / Mcf | (0.53) | |
Subsequent Event | Natural gas (NYMEX) | ||
Derivative [Line Items] | ||
Volume (Mmbtu) | Bcf | 42,800,000 | |
Swaps Weighted Average (in usd per Mmbtu) | $ / Mcf | 2.86 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Effect of Derivatives on Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | $ 57,665 | $ 2,239 |
Derivative Liabilities | 0 | 30,637 |
Derivatives Not Designated as Hedges | Commodity contracts | Derivative instruments (non-current) | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | 57,665 | 0 |
Derivative Liabilities | 0 | 30,637 |
Derivatives Not Designated as Hedges | Commodity contracts | Derivative instruments (non-current) | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | 0 | 2,239 |
Derivative Liabilities | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Offsetting Assets and Liabilities in the Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative assets | ||
Gross amounts of recognized assets | $ 60,105 | $ 2,239 |
Gross amounts offset in the statement of financial position | (2,440) | 0 |
Net amounts of assets presented in the statement of financial position | 57,665 | 2,239 |
Gross amounts of financial instruments not offset in the statement of financial position | 0 | 0 |
Net amount | 57,665 | 2,239 |
Derivative liabilities | ||
Gross amounts of recognized liabilities | 2,440 | 30,637 |
Gross amounts offset in the statement of financial position | (2,440) | 0 |
Net amounts of liabilities presented in the statement of financial position | 0 | 30,637 |
Gross amounts of financial instruments not offset in the statement of financial position | 0 | 241 |
Net amount | $ 0 | $ 30,878 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Effect of Derivative on Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Unrealized gain (loss) on derivative instruments | $ 44,432 | $ 16,926 | $ (38,950) |
Gain (loss) in derivative instruments not designated as hedges | 44,432 | 16,926 | (38,950) |
Derivatives Not Designated as Hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Unrealized gain (loss) on derivative instruments | 86,063 | 8,870 | (37,268) |
Gain (loss) on derivative instruments | Derivatives Not Designated as Hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gain (loss) on derivative instruments | $ (41,631) | $ 8,056 | $ (1,682) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Deferred compensation plan | $ 14,699 | $ 14,966 |
Derivative instruments | 60,105 | 2,239 |
Total assets | 74,804 | 17,205 |
Liabilities | ||
Deferred compensation plan | 25,780 | 29,145 |
Derivative instruments | 2,440 | 30,637 |
Total liabilities | 28,220 | 59,782 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Deferred compensation plan | 14,699 | 14,966 |
Derivative instruments | 0 | 0 |
Total assets | 14,699 | 14,966 |
Liabilities | ||
Deferred compensation plan | 25,780 | 29,145 |
Derivative instruments | 0 | 0 |
Total liabilities | 25,780 | 29,145 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 35,689 | 0 |
Total assets | 35,689 | 0 |
Liabilities | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 24,416 | 2,239 |
Total assets | 24,416 | 2,239 |
Liabilities | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 2,440 | 30,637 |
Total liabilities | $ 2,440 | $ 30,637 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets and Liabilities Classified as Level 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 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 | $ (28,398) | $ (15,868) | $ 0 |
Total gain (loss) included in earnings | 31,184 | (1,866) | (17,886) |
Settlement (gain) loss | 19,190 | (10,664) | 2,018 |
Transfers in and/or out of Level 3 | 0 | 0 | 0 |
Balance at end of period | 21,976 | (28,398) | (15,868) |
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period | $ 19,732 | $ (28,398) | $ (15,868) |
Fair Value Measurements - Debt
Fair Value Measurements - Debt Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value disclosures | ||
Long-term debt | $ 1,226,104 | $ 1,521,891 |
Current maturities | 0 | (304,000) |
Long-term debt, net | 1,226,104 | 1,217,891 |
Carrying Amount | ||
Fair value disclosures | ||
Long-term debt | 1,226,104 | 1,521,891 |
Current maturities | 0 | (304,000) |
Long-term debt, net | 1,226,104 | 1,217,891 |
Estimated Fair Value | ||
Fair value disclosures | ||
Long-term debt | 1,202,994 | 1,527,624 |
Current maturities | 0 | (312,055) |
Long-term debt, net | $ 1,202,994 | $ 1,215,569 |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)Impaired_Asset_And_Liabilty | Dec. 31, 2017USD ($)Impaired_Asset_And_Liabilty | Dec. 31, 2016USD ($)Impaired_Asset_And_Liabilty | |
Fair Value Disclosures [Abstract] | |||
Fair value assets Level 1 to Level 2 transfers amount | $ 0 | $ 0 | $ 0 |
Fair value liabilities Level 1 to Level 2 transfers amount | 0 | 0 | 0 |
Fair value assets Level 2 to Level 1 transfers amount | 0 | 0 | 0 |
Fair value liabilities Level 2 to Level 1 transfers amount | $ 0 | $ 0 | $ 0 |
Number of non-financial assets and liabilities impaired | Impaired_Asset_And_Liabilty | 0 | 0 | 0 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Asset Retirement Obligations (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Asset Retirement Obligation | |
Balance at beginning of period | $ 48,553 |
Liabilities incurred | 5,152 |
Liabilities settled | (1,035) |
Liabilities divested | (3,809) |
Accretion expense | 2,541 |
Transferred from held for sale | 220 |
Balance at end of period | $ 51,622 |
Asset Retirement Obligations _2
Asset Retirement Obligations - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation, current | $ 1 | $ 5 |
Commitments and Contingencies -
Commitments and Contingencies - Future Transportation and Gathering Commitments (Details) - Transportation Agreement Obligation $ in Thousands | Dec. 31, 2018USD ($) |
Other Commitments [Line Items] | |
2,019 | $ 100,703 |
2,020 | 145,997 |
2,021 | 159,286 |
2,022 | 159,286 |
2,023 | 142,943 |
Thereafter | 954,740 |
Future transportation agreement obligation | $ 1,662,955 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Lease Commitment (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 5,571 |
2,020 | 5,684 |
2,021 | 4,777 |
2,022 | 1,659 |
2,023 | 1,691 |
Thereafter | 2,852 |
Future lease payments due | $ 22,234 |
Commitments and Contingencies_3
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 9.3 | $ 9.7 | $ 10.7 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||
Federal | $ (95,191) | $ (9,531) | $ (9,920) |
State | 6,682 | 1,816 | (1,848) |
Total | (88,509) | (7,715) | (11,768) |
Deferred | |||
Federal | 230,643 | (313,938) | (218,357) |
State | (1,040) | (7,175) | (12,350) |
Total | 229,603 | (321,113) | (230,707) |
Income tax (benefit) expense | $ 141,094 | $ (328,828) | $ (242,475) |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amount | |||
Computed expected federal income tax | $ 146,609 | $ (79,952) | $ (230,860) |
State income tax, net of federal income tax benefit | 11,850 | (4,239) | (10,888) |
Deferred tax adjustment related to change in overall state tax rate | (15,208) | (48) | (663) |
Valuation allowance | 8,975 | (505) | 221 |
Provision to return adjustments | (1,773) | (3,242) | (121) |
Excess stock compensation | 327 | 2,965 | 0 |
Tax Act | (11,367) | (242,875) | 0 |
Other, net | 1,681 | (932) | (164) |
Income tax (benefit) expense | $ 141,094 | $ (328,828) | $ (242,475) |
Rate | |||
Statutory federal income tax rate (as a percent) | 21.00% | 35.00% | 35.00% |
State income tax, net of federal income tax benefit (as a percent) | 1.70% | 1.86% | 1.65% |
Deferred tax adjustment related to change in overall state tax rate (as a percent) | (2.18%) | 0.02% | 0.10% |
Valuation allowance (as a percent) | 1.29% | 0.22% | (0.03%) |
Provision to return adjustments (as a percent) | (0.25%) | 1.42% | 0.02% |
Excess stock compensation (as a percent) | 0.05% | (1.30%) | 0.00% |
Tax reform (as a percent) | (1.63%) | 106.32% | (0.00%) |
Other, net (as a percent) | 0.24% | 0.41% | 0.02% |
Income tax benefit (as a percent) | 20.21% | 143.95% | 36.76% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Asset and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets | ||
Net operating losses | $ 56,769 | $ 207,633 |
Alternative minimum tax credits | 114,149 | 208,624 |
Foreign tax credits | 3,473 | 3,541 |
Other business credits | 3,380 | 3,524 |
Derivative instruments | 0 | 6,645 |
Incentive compensation | 17,378 | 15,898 |
Deferred compensation | 5,690 | 6,065 |
Post-retirement benefits | 6,799 | 7,265 |
Equity method investments | 20,746 | 21,812 |
Capital loss carryforward | 8,877 | 0 |
Other | 2,957 | 492 |
Less: valuation allowance | (14,943) | (16,711) |
Total | 225,275 | 464,788 |
Deferred Tax Liabilities | ||
Properties and equipment | 670,704 | 691,818 |
Derivative instruments | 13,168 | 0 |
Total | 683,872 | 691,818 |
Net deferred tax liabilities | $ 458,597 | $ 227,030 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
State tax effected net operating losses | ||||
TCJA tax benefit | $ 11,400 | $ 242,900 | ||
Effective tax rate | 20.21% | 143.95% | 36.76% | |
Alternative minimum tax credits | $ 114,149 | $ 208,624 | ||
Valuation allowance | 14,943 | 16,711 | ||
Unrecognized tax benefits | 16,850 | $ 663 | $ 663 | $ 663 |
Liability for accrued interest | 3,100 | |||
Federal | ||||
State tax effected net operating losses | ||||
Net operating loss carryforwards | 142,600 | |||
State Tax Reporting | ||||
State tax effected net operating losses | ||||
Net operating loss carryforwards | 468,100 | |||
Valuation allowance on operating loss carryforwards | $ 14,100 | |||
Excluding Impact of Tax Reform | ||||
State tax effected net operating losses | ||||
Effective tax rate | 21.80% | 37.60% | ||
Refundable Portion Of AMT Credits | ||||
State tax effected net operating losses | ||||
TCJA tax benefit | $ 10,700 | |||
Valuation allowance | $ 10,700 |
Income Taxes - Rollforward of U
Income Taxes - Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of unrecognized tax benefits | |||
Balance at beginning of year | $ 663 | $ 663 | $ 663 |
Additions for tax positions of prior years | 16,187 | 0 | 0 |
Balance at end of year | $ 16,850 | $ 663 | $ 663 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)Retireeshares | Dec. 31, 2017USD ($)Retireeemployeeshares | Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of retirees and dependents | Retiree | 337 | 340 | |
Subsidy limit percentage of expected annual fully insured premium over age threshold | 60.00% | ||
Subsidy limit percentage of expected annual fully insured premium under age threshold | $ 648,000 | ||
Annual subsidy limit percentage increases for fully insured premium over age threshold | 3.50% | ||
Estimated contributions next year | $ 1,900,000 | ||
Liabilities, including the Company's common stock | 25,780,000 | $ 29,145,000 | |
Defined contribution cost (credit) recognized | $ 3,100,000 | 2,600,000 | $ 1,800,000 |
Savings Investment Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching percent | 6.00% | ||
Maximum contribution, percent of employee salary | 10.00% | ||
Plan contributions charged to expense | $ 5,900,000 | 6,500,000 | 6,500,000 |
Deferred compensation plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Market value of the trust assets, excluding the Company's common stock | 14,700,000 | 15,000,000 | |
Liabilities, including the Company's common stock | $ 25,800,000 | $ 29,100,000 | |
Number of common stock deferred into the rabbi trust (in shares) | shares | 495,774 | 495,774 | |
Company's common stock held in the rabbi trust | $ 5,100,000 | $ 5,100,000 | |
Company contributions to deferred compensation plan | $ 1,100,000 | $ 1,000,000 | $ 600,000 |
West Virginia, Virginia, and Ohio | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employees terminated | employee | 100 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Benefit Obligation and Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in Benefit Obligation | |||
Benefit obligation at beginning of year | $ 31,050 | $ 37,482 | $ 36,626 |
Service cost | 1,776 | 1,508 | 2,323 |
Interest cost | 1,172 | 1,097 | 1,498 |
Actuarial (gain) loss | (3,165) | 5,156 | (2,846) |
Benefits paid | (1,056) | (1,204) | (934) |
Curtailments | 0 | (4,346) | 0 |
Plan amendments | 0 | (8,643) | 815 |
Benefit obligation at end of year | 29,777 | 31,050 | 37,482 |
Change in Plan Assets | |||
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status at end of year | $ (29,777) | $ (31,050) | $ (37,482) |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in the Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Amounts Recognized in the Balance Sheet | |||
Current liabilities | $ 1,865 | $ 1,654 | $ 1,223 |
Long-term liabilities | 27,912 | 29,396 | 36,259 |
Amounts recognized in the balance sheet | $ 29,777 | $ 31,050 | $ 37,482 |
Employee Benefit Plans - Amou_2
Employee Benefit Plans - Amount Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Amounts Recognized in Accumulated Other Comprehensive Income | |||
Net actuarial (gain) loss | $ (1,253) | $ 1,912 | $ (2,266) |
Prior service cost | (4,497) | (5,206) | 704 |
Amount recognized to accumulated other comprehensive income, net actuarial loss | $ (5,750) | $ (3,294) | $ (1,562) |
Employee Benefit Plans - Chan_2
Employee Benefit Plans - Changes in Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of Net Periodic Postretirement Benefit Cost | |||
Service cost | $ 1,776 | $ 1,508 | $ 2,323 |
Interest cost | 1,172 | 1,097 | 1,498 |
Amortization of prior service cost | (709) | (1,183) | 111 |
Net periodic postretirement cost | 2,239 | 1,422 | 3,932 |
Recognized curtailment gain | 0 | (4,917) | 0 |
Total post retirement cost (income) | 2,239 | (3,495) | 3,932 |
Other Changes in Benefit Obligations Recognized in Other Comprehensive Income (Loss) | |||
Net (gain) loss | (3,165) | 4,178 | (2,846) |
Prior service cost | 0 | (8,643) | 815 |
Amortization of prior service cost | 709 | 2,733 | (111) |
Total recognized in other comprehensive income | (2,456) | (1,732) | (2,142) |
Total recognized in net periodic benefit cost (income) and other comprehensive income | $ (217) | $ (5,227) | $ 1,790 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions in Benefit Plans (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted-average assumptions used to determine projected pension benefit obligations | |||
Discount rate (as a percent) | 4.45% | 3.85% | 4.30% |
Health care cost trend rate for medical benefits assumed for next year (pre-65) | 7.25% | 7.50% | 7.50% |
Health care cost trend rate for medical benefits assumed for next year (post-65) | 5.50% | 5.75% | 5.00% |
Ultimate trend rate (pre-65) | 4.50% | 4.50% | 4.50% |
Ultimate trend rate (post-65) | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate (pre-65) | 2,030 | 2,030 | 2,023 |
Year that the rate reaches the ultimate trend rate (post-65) | 2,023 | 2,023 | 2,018 |
Beginning Discount Rate | 3.85% | 3.85% | 4.25% |
Employee Benefit Plans - Health
Employee Benefit Plans - Healthcare Trend Effect on Benefit Obligation (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Effect of a one-percentage-point change in assumed health care cost trend rates | |
Effect of a 1 percentage-point increase in total of service and interest cost | $ 668 |
Effect of a 1 percentage-point decrease in total of service and interest cost | (510) |
Effect of a 1 percentage-point increase in postretirement benefit obligation | 4,129 |
Effect of a 1 percentage-point decrease in postretirement benefit obligation | $ (3,310) |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Estimated future benefit payments | |
2,019 | $ 1,907 |
2,020 | 1,954 |
2,021 | 1,951 |
2,022 | 2,013 |
2,023 | 2,012 |
Years 2024 - 2028 | $ 8,993 |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Mar. 02, 2016 | Feb. 26, 2016 | Feb. 22, 2016 | Oct. 31, 2018 | Jul. 31, 2018 | Feb. 28, 2018 | Jan. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 30, 2018 | May 01, 2014 |
Incentive Plans | ||||||||||||||
Issuance of common stock (in shares) | 6,600,000 | 44,000,000 | ||||||||||||
Share price (in usd per share) | $ 19.675 | |||||||||||||
Sale of common stock, net | $ 129,900 | $ 865,700 | $ 0 | $ 0 | $ 995,279 | |||||||||
Incremental shares approved for repurchase (in shares) | 20,000,000 | 25,000,000 | ||||||||||||
Treasury stock, number of shares authorized to be repurchased | 11,600,000 | |||||||||||||
Number of shares repurchased | 38,500,000 | 5,000,000 | 0 | |||||||||||
Cost of shares repurchased | $ 904,100 | $ 123,700 | ||||||||||||
Cumulative number of shares repurchased under a share repurchase program | 73,400,000 | |||||||||||||
Treasury stock, cumulative shares retired | 20,000,000 | |||||||||||||
Cumulative cost of shares repurchased under a share repurchase program | $ 1,400,000 | |||||||||||||
Treasury stock reissued | 0 | |||||||||||||
Shares held as treasury stock (in shares) | 14,935,926 | 53,409,705 | 14,935,926 | 1,379,268 | ||||||||||
Cash dividends, per share (in dollars per share) | $ 0.05 | $ 0.07 | $ 0.06 | $ 0.06 | $ 0.25 | $ 0.17 | $ 0.08 | |||||||
2014 Incentive Plan | ||||||||||||||
Incentive Plans | ||||||||||||||
Number of shares reserved for issuance | 18,000,000 | |||||||||||||
Number of shares available for issuance | 13,700,000 | |||||||||||||
2014 Incentive Plan | Stock options | Maximum | ||||||||||||||
Incentive Plans | ||||||||||||||
Number of shares reserved for issuance | 10,000,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | Feb. 22, 2016USD ($)shares | Feb. 19, 2016performance_criteria | Jan. 05, 2016USD ($)shares | Jan. 31, 2018USD ($) | Feb. 28, 2015 | Dec. 31, 2018USD ($)Award_Typeshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 33,100,000 | $ 34,000,000 | $ 26,000,000 | |||||
Excess tax expense for stock-based compensation | 300,000 | 3,000,000 | ||||||
Stock-based compensation tax benefit | 2,100,000 | |||||||
Defined contribution cost recognized | $ 3,100,000 | |||||||
Deferred Compensation, Share-based Payments | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common shares held in employee trust earned but not distributed (in shares) | shares | 495,774 | |||||||
Restricted Stock Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 2,800,000 | 500,000 | 400,000 | |||||
Award vesting period | 3 years | |||||||
Compensation cost not yet recognized | $ 1,100,000 | |||||||
Fair value of award | $ 200,000 | 900,000 | 200,000 | |||||
Period of recognition for unrecognized compensation costs | 6 months | |||||||
Aggregate intrinsic value | $ 3,400,000 | |||||||
Weighted-average remaining contractual term of non-vested shares | 5 months 1 day | |||||||
Restricted Stock Awards | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expected forfeiture rate | 5.00% | |||||||
Restricted Stock Awards | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expected forfeiture rate | 6.00% | |||||||
Restricted Stock Awards | Graduated or graded vesting | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Restricted Stock Awards | Graduated or graded vesting | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 4 years | |||||||
Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 0 | 1,400,000 | 1,400,000 | |||||
Aggregate intrinsic value | $ 11,000,000 | |||||||
Stock Appreciation Rights | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Term of award | 7 years | |||||||
Stock Appreciation Rights | Graduated or graded vesting | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 30,600,000 | 29,100,000 | 21,300,000 | |||||
Award vesting period | 3 years | |||||||
Compensation cost not yet recognized | $ 24,700,000 | |||||||
Number of performance award types | Award_Type | 3 | |||||||
Period of recognition for unrecognized compensation costs | 11 months 4 days | |||||||
Aggregate intrinsic value | $ 72,500,000 | |||||||
Weighted-average remaining contractual term of non-vested shares | 1 year 1 month 25 days | |||||||
Number of performance awards where the performance period has ended | Award_Type | 2 | |||||||
Performance Shares | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expected forfeiture rate | 0.00% | |||||||
Performance Shares | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expected forfeiture rate | 6.00% | |||||||
Internal Metrics Performance Share Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of performance award types | Award_Type | 2 | |||||||
Rights to share portion of award, maximum percent | 100.00% | |||||||
Market Based Performance Share Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of performance award types | Award_Type | 1 | |||||||
Rights to share portion of award, maximum percent | 100.00% | |||||||
Rights to cash portion of award, maximum percent | 100.00% | |||||||
Employee Performance Share Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | 3 years | ||||||
Number of performance criteria | performance_criteria | 3 | |||||||
Number of performance awards issued and certified (in shares) | shares | 389,920 | |||||||
Grant date fair value of performance shares issued and certified | $ 7,900,000 | |||||||
Hybrid Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Minimum operating cash flow for performance based award | $ 100,000,000 | |||||||
Hybrid Performance Shares | Graduated or graded vesting | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Hybrid Performance Shares | 25% vesting on first and second anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting percentage | 25.00% | |||||||
Hybrid Performance Shares | 50% vesting on third anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting percentage | 50.00% | |||||||
TSR Performance Share Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Performance period of peer group | 3 years | |||||||
Cash payments for share-based compensation | $ 3,300,000 | 0 | $ 1,800,000 | |||||
Number of performance awards issued and certified (in shares) | shares | 407,907 | |||||||
Grant date fair value of performance shares issued and certified | $ 7,600,000 | |||||||
Payments for stock-based compensation | $ 5,000,000 | |||||||
TSR Performance Share Awards | Liability | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Current portion of share-based liability | 5,000,000 | 3,300,000 | ||||||
Noncurrent portion of share-based liability | $ 7,900,000 | $ 6,600,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Awards (Details) - Restricted Stock Awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of restricted stock award activity (in shares) | |||
Outstanding at beginning of period (in shares) | 161,450 | 43,175 | 49,825 |
Granted (in shares) | 0 | 158,500 | 0 |
Vested (in shares) | (7,157) | (40,225) | (6,650) |
Forfeited (in shares) | (4,000) | 0 | 0 |
Outstanding at end of period (in shares) | 150,293 | 161,450 | 43,175 |
Weighted-Average Grant Date Fair Value per Share (in usd per share) | |||
Outstanding at beginning of period (in USD per share) | $ 28 | $ 33.87 | $ 33.76 |
Granted (in USD per share) | 0 | 28.05 | 0 |
Vested (in USD per share) | 25.17 | 34.49 | 33.02 |
Forfeited (in USD per share) | 28.45 | 0 | 0 |
Outstanding at end of period (in USD per share) | $ 28.12 | $ 28 | $ 33.87 |
Additional disclosures | |||
Aggregate intrinsic value | $ 3.4 | ||
Weighted-average remaining contractual term of non-vested shares | 5 months 1 day |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Restricted Units (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of restricted stock award activity (in shares) | |||
Outstanding at beginning of period (in shares) | 407,563 | 348,538 | 425,438 |
Granted and fully vested (in shares) | 82,852 | 59,025 | 69,302 |
Issued (in shares) | 0 | 0 | (146,202) |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding at end of period (in shares) | 490,415 | 407,563 | 348,538 |
Weighted-Average Grant Date Fair Value per Share (in usd per share) | |||
Outstanding at beginning of period (in USD per share) | $ 16.17 | $ 15.01 | $ 13.81 |
Granted and fully vested (USD per share) | 23.47 | 23.04 | 20.62 |
Issued (USD per share) | 0 | 0 | 14.17 |
Forfeited (in USD per share) | 0 | 0 | 0 |
Outstanding at end of period (in USD per share) | $ 17.41 | $ 16.17 | $ 15.01 |
Additional disclosures | |||
Aggregate intrinsic value | $ 11 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Stock Appreciation Rights (Details) - Stock Appreciation Rights - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Stock Appreciation Rights Activity (in shares) | |||
Outstanding at beginning of period (in shares) | 57,144 | 483,286 | 558,546 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (57,144) | (426,142) | (75,260) |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding at end of period (in shares) | 0 | 57,144 | 483,286 |
Exercisable at end of period (in shares) | 0 | 57,144 | 483,286 |
Weighted-Average Exercise Price (in dollars per share) | |||
Outstanding at beginning of period (in USD per share) | $ 17.59 | $ 13.04 | $ 12.52 |
Granted (in USD per share) | 0 | 0 | 0 |
Exercised (in USD per share) | 17.59 | 12.43 | 9.19 |
Forfeited (in USD per share) | 0 | 0 | 0 |
Outstanding at end of period (in USD per share) | 0 | 17.59 | 13.04 |
Exercisable at end of period (in USD per share) | $ 0 | $ 17.59 | $ 13.04 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Performance Awards (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Performance Share Awards | |||
Summary of employee performance share awards activity (in shares) | |||
Outstanding at beginning of period (in shares) | 1,095,970 | 993,530 | 925,590 |
Granted (in shares) | 531,670 | 406,460 | 435,990 |
Issued and fully vested | (315,970) | (225,780) | (340,960) |
Forfeited (in shares) | (31,649) | (78,240) | (27,090) |
Outstanding at end of period (in shares) | 1,280,021 | 1,095,970 | 993,530 |
Weighted-Average Grant Date Fair Value per Share (in usd per share) | |||
Outstanding at beginning of period (in USD per share) | $ 23.31 | $ 27.26 | $ 30.23 |
Granted (in USD per share) | 23.25 | 22.60 | 20.49 |
Issued and fully vested (in USD per share) | 27.71 | 39.43 | 26.62 |
Forfeited (in USD per share) | 22.33 | 23.20 | 27.77 |
Outstanding at end of period (in USD per share) | $ 22.22 | $ 23.31 | $ 27.26 |
Hybrid Performance Shares | |||
Summary of employee performance share awards activity (in shares) | |||
Outstanding at beginning of period (in shares) | 574,354 | 479,784 | 372,385 |
Granted (in shares) | 321,720 | 272,920 | 271,938 |
Issued and fully vested | (233,686) | (178,350) | (164,539) |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding at end of period (in shares) | 662,388 | 574,354 | 479,784 |
Weighted-Average Grant Date Fair Value per Share (in usd per share) | |||
Outstanding at beginning of period (in USD per share) | $ 22.72 | $ 25.12 | $ 30.37 |
Granted (in USD per share) | 23.25 | 22.60 | 20.49 |
Issued and fully vested (in USD per share) | 24.12 | 29.01 | 29.34 |
Forfeited (in USD per share) | 0 | 0 | 0 |
Outstanding at end of period (in USD per share) | $ 22.48 | $ 22.72 | $ 25.12 |
TSR Performance Share Awards | |||
Summary of employee performance share awards activity (in shares) | |||
Outstanding at beginning of period (in shares) | 1,109,708 | 885,213 | 732,286 |
Granted (in shares) | 482,581 | 409,380 | 407,907 |
Issued and fully vested | (292,421) | (157,147) | (254,980) |
Forfeited (in shares) | 0 | (27,738) | 0 |
Outstanding at end of period (in shares) | 1,299,868 | 1,109,708 | 885,213 |
Weighted-Average Grant Date Fair Value per Share (in usd per share) | |||
Outstanding at beginning of period (in USD per share) | $ 19.23 | $ 21.62 | $ 23.82 |
Granted (in USD per share) | 19.92 | 19.85 | 18.57 |
Issued and fully vested (in USD per share) | 19.29 | 32.04 | 23.06 |
Forfeited (in USD per share) | 0 | 32.04 | 0 |
Outstanding at end of period (in USD per share) | $ 19.47 | $ 19.23 | $ 21.62 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions for Share Based Awards (Details) - TSR Performance Share Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock price volatility, minimum rate | 29.90% | 29.10% | 40.40% |
Stock price volatility, maximum rate | 31.10% | 36.70% | 43.00% |
Risk free rate of return, minimum rate | 2.50% | 1.80% | 0.90% |
Risk free rate of return, maximum rate | 2.60% | 1.90% | 1.20% |
Stockholders' Equity | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per performance share award granted during the period | $ 19.92 | $ 19.85 | $ 18.57 |
Stock price volatility | 37.30% | 37.80% | 34.40% |
Risk free rate of return | 2.40% | 1.40% | 0.90% |
Minimum | Liability | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per performance share award granted during the period | $ 15.15 | $ 13.23 | $ 5.59 |
Maximum | Liability | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per performance share award granted during the period | $ 20.12 | $ 21.64 | $ 7.10 |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of EPS (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Weighted-average shares - basic (in shares) | 445,538 | 463,735 | 456,847 |
Dilution effect of stock options, stock appreciation rights and stock awards at end of period (in shares) | 2,030 | 1,816 | 0 |
Weighted-average shares - diluted (in shares) | 447,568 | 465,551 | 456,847 |
Earnings per Common Share - Cal
Earnings per Common Share - Calculation of Weighted-Average Shares Excluded from Diluted EPS (Details) - Stock Compensation Plan - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 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 | 0 | 1,478 |
Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method | 3 | 28 | 1 |
Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect | 3 | 28 | 1,479 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in accumulated other comprehensive income (loss) by component, net of tax | |||
Balance at beginning of period | $ 2,523,905 | $ 2,567,667 | $ 2,009,188 |
Total other comprehensive income | 2,360 | 1,092 | 1,350 |
Balance at end of period | 2,088,159 | 2,523,905 | 2,567,667 |
Postretirement Benefits | |||
Changes in accumulated other comprehensive income (loss) by component, net of tax | |||
Balance at beginning of period | 2,077 | 985 | (365) |
Other comprehensive income (loss) before reclassifications | 2,461 | 2,815 | 1,280 |
Amounts reclassified from accumulated other comprehensive income (loss) | (101) | (1,723) | 70 |
Total other comprehensive income | 2,360 | 1,092 | 1,350 |
Balance at end of period | $ 4,437 | $ 2,077 | $ 985 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | |||
General and administrative expense | $ (96,641) | $ (97,786) | $ (85,633) |
Income (loss) before income taxes | 698,137 | (228,435) | (659,599) |
Income tax benefit (expense) | (141,094) | 328,828 | 242,475 |
Cumulative impact from accounting change | (446) | ||
NET INCOME (LOSS) | 557,043 | 100,393 | (417,124) |
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | |||
Income (loss) before income taxes | 709 | 2,733 | (111) |
Income tax benefit (expense) | (162) | (1,010) | 41 |
Cumulative impact from accounting change | (446) | 0 | 0 |
Postretirement Benefits | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | |||
NET INCOME (LOSS) | 101 | 1,723 | (70) |
Amortization of prior service cost | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | |||
General and administrative expense | $ 709 | $ 2,733 | $ (111) |
Additional Balance Sheet Info_3
Additional Balance Sheet Information - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, net | ||
Trade accounts | $ 362,973 | $ 215,511 |
Joint interest accounts | 101 | 467 |
Other accounts | 567 | 1,312 |
Receivables gross current | 363,641 | 217,290 |
Allowance for doubtful accounts | (1,238) | (1,286) |
Accounts receivable, net | 362,403 | 216,004 |
Other assets | ||
Deferred compensation plan | 14,699 | 14,966 |
Debt issuance cost | 4,572 | 7,990 |
Income taxes receivable | 8,165 | 0 |
Other accounts | 61 | 56 |
Other assets | 27,497 | 23,012 |
Accounts payable | ||
Trade accounts | 30,033 | 7,815 |
Natural gas purchases | 0 | 4,299 |
Royalty and other owners | 61,507 | 39,207 |
Accrued transportation | 50,540 | 51,433 |
Accrued capital costs | 43,207 | 31,130 |
Taxes other than income | 19,824 | 16,801 |
Income taxes payable | 1,134 | 0 |
Deposits received for asset sales | 0 | 81,500 |
Other accounts | 35,694 | 5,860 |
Accounts payable current | 241,939 | 238,045 |
Accrued liabilities | ||
Employee benefits | 21,761 | 20,645 |
Taxes other than income | 1,472 | 550 |
Asset retirement obligations | 1,000 | 4,952 |
Other accounts | 994 | 1,294 |
Accrued liabilities | 25,227 | 27,441 |
Other liabilities | ||
Deferred compensation plan | 25,780 | 29,145 |
Other accounts | 34,391 | 10,578 |
Other liabilities | $ 60,171 | $ 39,723 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash paid for interest and income taxes | |||
Interest | $ 80,069 | $ 79,846 | $ 86,723 |
Income taxes | $ 4,635 | $ 40,626 | $ 688 |