Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 21, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'CABOT OIL & GAS CORP | ' |
Entity Central Index Key | '0000858470 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 417,290,522 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $25,431 | $23,400 |
Restricted cash | 19,713 | 28,094 |
Accounts receivable, net | 245,073 | 222,476 |
Inventories | 10,392 | 17,468 |
Deferred income taxes | 71,806 | 81,855 |
Other current assets | 1,415 | 5,606 |
Total current assets | 373,830 | 378,899 |
Properties and equipment, net (Successful efforts method) | 4,710,569 | 4,546,227 |
Other assets | 61,376 | 55,954 |
TOTAL ASSETS | 5,145,775 | 4,981,080 |
Current liabilities | ' | ' |
Accounts payable | 297,685 | 288,801 |
Accrued liabilities | 47,203 | 73,601 |
Derivative instruments | 73,428 | 13,912 |
Income taxes payable | 14,312 | 31,591 |
Total current liabilities | 432,628 | 407,905 |
Postretirement benefits | 34,373 | 33,554 |
Long-term debt | 1,222,000 | 1,147,000 |
Deferred income taxes | 1,074,497 | 1,067,912 |
Asset retirement obligation | 75,604 | 73,853 |
Other liabilities | 37,882 | 46,254 |
Total liabilities | 2,876,984 | 2,776,478 |
Commitments and contingencies | ' | ' |
Stockholders' equity | ' | ' |
Common stock: Authorized -- 480,000,000 shares of $0.10 par value in 2014 and 2013, respectively Issued--422,906,452 shares and 422,014,681 shares in 2014 and 2013, respectively | 42,291 | 42,201 |
Additional paid-in capital | 713,950 | 710,940 |
Retained earnings | 1,726,504 | 1,627,805 |
Accumulated other comprehensive income / (loss) | -45,971 | -8,361 |
Less treasury stock, at cost: 5,618,166 shares in 2014 and 2013, respectively | -167,983 | -167,983 |
Total stockholders' equity | 2,268,791 | 2,204,602 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,145,775 | $4,981,080 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
CONDENSED CONSOLIDATED BALANCE SHEET | ' | ' |
Common stock, Authorized shares | 480,000,000 | 480,000,000 |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, Issued shares | 422,906,452 | 422,014,681 |
Treasury stock, shares | 5,618,166 | 5,618,166 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
OPERATING REVENUES | ' | ' |
Natural gas | $432,809 | $293,793 |
Crude oil and condensate | 59,144 | 65,655 |
Brokered natural gas | 13,153 | 10,893 |
Other | 4,697 | 2,944 |
TOTAL OPERATING REVENUES | 509,803 | 373,285 |
OPERATING EXPENSES | ' | ' |
Direct operations | 35,834 | 31,497 |
Transportation and gathering | 77,765 | 46,221 |
Brokered natural gas cost | 11,860 | 8,389 |
Taxes other than income | 13,044 | 11,687 |
Exploration | 6,474 | 4,024 |
Depreciation, depletion and amortization | 147,418 | 148,653 |
General and administrative | 21,636 | 35,704 |
TOTAL OPERATING EXPENSES | 314,031 | 286,175 |
Gain/(loss) on sale of assets | -1,285 | -96 |
INCOME FROM OPERATIONS | 194,487 | 87,014 |
Interest expense and other | 16,557 | 16,255 |
Income before income taxes | 177,930 | 70,759 |
Income tax expense | 70,899 | 27,935 |
NET INCOME | $107,031 | $42,824 |
Earnings per share | ' | ' |
Basic (in dollars per share) | $0.26 | $0.10 |
Diluted (in dollars per share) | $0.26 | $0.10 |
Weighted-average common shares outstanding | ' | ' |
Basic (in shares) | 416,900 | 420,300 |
Diluted (in shares) | 418,513 | 422,752 |
Dividends per common share (in dollars per share) | $0.02 | $0.01 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ' | ' | ||
Net income | $107,031 | $42,824 | ||
Other comprehensive income / (loss), net of taxes: | ' | ' | ||
Reclassification adjustment for settled hedge contracts | 42,565 | [1] | -9,325 | [1] |
Changes in fair value of hedge contracts | -80,175 | [2] | -36,975 | [2] |
Postretirement benefits: | ' | ' | ||
Amortization of net loss | ' | 125 | [3] | |
Total other comprehensive income / (loss) | -37,610 | -46,175 | ||
Comprehensive income / (loss) | $69,421 | ($3,351) | ||
[1] | Net of income taxes of $(28,210) and $6,045 for the three months ended March 31, 2014 and 2013, respectively. | |||
[2] | Net of income taxes of $53,135 and $23,971 for the three months ended March 31, 2014 and 2013, respectively. | |||
[3] | Net of income taxes of $(80) for the three months ended March 31, 2013. |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ' | ' |
Reclassification adjustment for settled hedge contracts, income taxes | ($28,210) | $6,045 |
Changes in fair value of hedge contracts, income taxes | 53,135 | 23,971 |
Pension and postretirement benefits: | ' | ' |
Amortization of net loss, income taxes | ' | ($80) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $107,031 | $42,824 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation, depletion and amortization | 147,418 | 148,653 |
Deferred income tax expense | 57,603 | 23,574 |
(Gain) / loss on sale of assets | 1,285 | 96 |
Exploration expense | 2,040 | 666 |
Amortization of debt issuance costs | 1,126 | 897 |
Stock-based compensation and other | 3,029 | 17,655 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable, net | -23,418 | -243 |
Income taxes | -16,889 | 4,349 |
Inventories | 7,076 | 2,896 |
Other current assets | 1,170 | 983 |
Accounts payable and accrued liabilities | -16,089 | -27,885 |
Other assets and liabilities | 39 | 358 |
Stock-based compensation tax benefit | -16,043 | -2,138 |
Net cash provided by operating activities | 255,378 | 212,685 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -338,701 | -260,169 |
Proceeds from sale of assets | 108 | 486 |
Restricted cash | 8,382 | ' |
Investment in equity method investment | -5,937 | -1,250 |
Net cash used in investing activities | -336,148 | -260,933 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Borrowings from debt | 366,000 | 135,000 |
Repayments of debt | -291,000 | -95,000 |
Dividends paid | -8,332 | -4,201 |
Stock-based compensation tax benefit | 16,043 | 2,138 |
Other | 90 | 32 |
Net cash provided by financing activities | 82,801 | 37,969 |
Net increase / (decrease) in cash and cash equivalents | 2,031 | -10,279 |
Cash and cash equivalents, beginning of period | 23,400 | 30,736 |
Cash and cash equivalents, end of period | $25,431 | $20,457 |
Financial_Statement_Presentati
Financial Statement Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Financial Statement Presentation | ' |
Financial Statement Presentation | ' |
1. Financial Statement Presentation | |
During interim periods, Cabot Oil & Gas Corporation (the Company) follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2013 (Form 10-K) filed with the Securities and Exchange Commission (SEC). The interim financial statements should be read in conjunction with the notes to the consolidated financial statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the expected results for the entire year. | |
Certain reclassifications have been made to prior year statements to conform with the current year presentation. These reclassifications have no impact on previously reported net income. | |
With respect to the unaudited financial information of the Company as of March 31, 2014 and for the three months ended March 31, 2014 and 2013, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated April 25, 2014 appearing herein states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a “report” or a “part” of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act. |
Properties_and_Equipment_Net
Properties and Equipment, Net | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Properties and Equipment, Net | ' | |||||||
Properties and Equipment, Net | ' | |||||||
2. Properties and Equipment, Net | ||||||||
Properties and equipment, net are comprised of the following: | ||||||||
March 31, | December 31, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Proved oil and gas properties | $ | 6,676,002 | $ | 6,362,570 | ||||
Unproved oil and gas properties | 365,186 | 375,428 | ||||||
Gathering and pipeline systems | 239,925 | 239,958 | ||||||
Land, building and other equipment | 97,082 | 94,243 | ||||||
7,378,195 | 7,072,199 | |||||||
Accumulated depreciation, depletion and amortization | (2,667,626 | ) | (2,525,972 | ) | ||||
$ | 4,710,569 | $ | 4,546,227 | |||||
At March 31, 2014, the Company did not have any projects that had exploratory well costs that were capitalized for a period of greater than one year after drilling. |
Equity_Method_Investment
Equity Method Investment | 3 Months Ended |
Mar. 31, 2014 | |
Equity Method Investment | ' |
Equity Method Investment | ' |
3. Equity Method Investment | |
For further information regarding the Company’s equity method investments, refer to Note 4 of the Notes to the Consolidated Financial Statements in the Form 10-K. | |
Meade Pipeline Co LLC | |
In February 2014, the Company acquired a 20% equity interest in Meade Pipeline Co LLC (Meade). Meade was formed to participate in the development and construction of a 177-mile pipeline (Central Penn Line) that will transport natural gas from Susquehanna County, Pennsylvania to an interconnect with Transcontinental Gas Pipe Line Company, LLC’s (Transco) mainline in Lancaster County, Pennsylvania. The new pipeline will be constructed and operated by Transco and will be owned by Transco and Meade in proportion to their respective ownership percentages. Under the terms of the LLC agreement, the Company agreed to invest its proportionate share of Meade’s anticipated costs associated with the new pipeline of $149 million, which is expected to occur over the next three to four years. The expected in-service date for the new pipeline is scheduled for the second half of 2017. There were no material contributions made to Meade for the period ended March 31, 2014. | |
Debt_and_Credit_Agreements
Debt and Credit Agreements | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt and Credit Agreements | ' | |||||||
Debt and Credit Agreements | ' | |||||||
4. Debt and Credit Agreements | ||||||||
The Company’s debt and credit agreements consisted of the following: | ||||||||
March 31, | December 31, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Long-Term Debt | ||||||||
7.33% weighted-average fixed rate notes | $ | 20,000 | $ | 20,000 | ||||
6.51% weighted-average fixed rate notes | 425,000 | 425,000 | ||||||
9.78% notes | 67,000 | 67,000 | ||||||
5.58% weighted-average fixed rate notes | 175,000 | 175,000 | ||||||
Credit facility | 535,000 | 460,000 | ||||||
$ | 1,222,000 | $ | 1,147,000 | |||||
At March 31, 2014, the Company had $535.0 million of borrowings outstanding under its revolving credit facility at a weighted-average interest rate of 2.2% and $864.0 million available for future borrowings. | ||||||||
The Company was in compliance with all restrictive financial covenants for both the revolving credit facility and fixed rate notes as of March 31, 2014. | ||||||||
Effective April 15, 2014, the lenders under the Company’s revolving credit facility approved an increase in the Company’s borrowing base from $2.3 billion to $3.1 billion as part of the annual redetermination under the terms of the revolving credit facility. The commitments under the revolving credit facility remain unchanged at $1.4 billion. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||||||
5. Derivative Instruments and Hedging Activities | |||||||||||||||||||||||
The Company periodically enters into commodity derivative instruments to hedge its exposure to price fluctuations on natural gas and crude oil production. The Company’s credit agreement restricts the ability of the Company to enter into commodity hedges 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. | |||||||||||||||||||||||
As of March 31, 2014, the Company had the following outstanding commodity derivatives: | |||||||||||||||||||||||
Collars | Swaps | ||||||||||||||||||||||
Floor | Ceiling | ||||||||||||||||||||||
Type of Contract | Volume | Contract Period | Range | Weighted- | Range | Weighted- | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Natural gas | 253.8 | Bcf | Apr. 2014 - Dec. 2014 | $3.60-$4.37 | $ | 4.13 | $4.22-$4.80 | $ | 4.51 | ||||||||||||||
Natural gas | 80.1 | Bcf | Apr. 2014 - Dec. 2014 | $ | 4.05 | ||||||||||||||||||
Crude oil | 550 | Mbbl | Apr. 2014 - Dec. 2014 | $ | 97 | ||||||||||||||||||
Natural gas prices are stated per Mcf and crude oil prices are stated per barrel. | |||||||||||||||||||||||
The change in the fair value of derivatives designated as hedges that are effective is recorded to accumulated other comprehensive income / (loss) in stockholders’ equity in the Condensed Consolidated Balance Sheet. The ineffective portion of the change in the fair value of derivatives designated as hedges and the change in fair value of derivatives not designated as hedges are recorded currently in earnings as a component of natural gas revenue and crude oil and condensate revenue in the Condensed Consolidated Statement of Operations. | |||||||||||||||||||||||
The following tables reflect the fair value of derivative instruments on the Company’s condensed consolidated financial statements: | |||||||||||||||||||||||
Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet | |||||||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||
(In thousands) | Balance Sheet Location | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Commodity contracts | Other current assets | $ | — | $ | 3,019 | $ | — | $ | — | ||||||||||||||
Commodity contracts | Derivative instruments (current liabilites) | — | — | 73,428 | 13,912 | ||||||||||||||||||
$ | — | $ | 3,019 | $ | 73,428 | $ | 13,912 | ||||||||||||||||
At March 31, 2014 and December 31, 2013, unrealized losses of $73.4 million ($44.2 million, net of tax) and $10.9 million ($6.6 million, net of tax), respectively, were recorded in accumulated other comprehensive income / (loss) in stockholders’ equity in the Condensed Consolidated Balance Sheet. Based upon estimates at March 31, 2014, the Company expects to reclassify $44.2 million in after-tax losses associated with its commodity hedges from accumulated other comprehensive income / (loss) to the Condensed Consolidated Statement of Operations over the next nine months. | |||||||||||||||||||||||
Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet | |||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||||
Gross amounts of recognized assets | $ | 4,041 | $ | 13,792 | |||||||||||||||||||
Gross amounts offset in the statement of financial position | (4,041 | ) | (10,773 | ) | |||||||||||||||||||
Net amounts of assets presented in the statement of financial position | — | 3,019 | |||||||||||||||||||||
Gross amounts of financial instruments not offset in the statement of financial position | — | 373 | |||||||||||||||||||||
Net amount | $ | — | $ | 3,392 | |||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||||
Gross amounts of recognized liabilities | $ | 77,469 | $ | 24,685 | |||||||||||||||||||
Gross amounts offset in the statement of financial position | (4,041 | ) | (10,773 | ) | |||||||||||||||||||
Net amounts of liabilities presented in the statement of financial position | 73,428 | 13,912 | |||||||||||||||||||||
Gross amounts of financial instruments not offset in the statement of financial position | 218 | — | |||||||||||||||||||||
Net amount | $ | 73,646 | $ | 13,912 | |||||||||||||||||||
Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations | |||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||
The amount of gain (loss) recognized in other comprehensive income / (loss) on derivatives (effective portion) is as follows: | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||||
Commodity contracts | $ | (133,310 | ) | $ | (60,946 | ) | |||||||||||||||||
The amount of gain (loss) reclassified from accumulated other comprehensive income / (loss) into income (effective portion) is as follows: | |||||||||||||||||||||||
(In thousands) | Three Months Ended | ||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Natural gas revenues | $ | (70,557 | ) | $ | 13,328 | ||||||||||||||||||
Crude oil and condensate revenues | (218 | ) | 2,042 | ||||||||||||||||||||
$ | (70,775 | ) | $ | 15,370 | |||||||||||||||||||
For the three months ended March 31, 2014 and 2013, respectively, there was no ineffectiveness recorded in the Company’s Condensed Consolidated Statement of Operations related to its derivative instruments designated as hedges. | |||||||||||||||||||||||
Additional Disclosures about Derivative Instruments and Hedging Activities | |||||||||||||||||||||||
The use of derivative instruments involves the risk that the counterparties will be unable to meet their obligations under the agreements. The Company enters into derivative contracts with multiple counterparties in order to limit its exposure to individual counterparties. The Company also has netting arrangements with all of its counterparties that allow it to offset assets and liabilities from separate derivative contracts with that counterparty. | |||||||||||||||||||||||
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. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
6. Fair Value Measurements | ||||||||||||||
The Company follows the authoritative 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 authoritative guidance also established a formal fair value hierarchy based on the inputs used to measure fair value. The hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. The Company has classified its assets and liabilities into these levels depending upon the data relied on to determine the fair values. For further information regarding the fair value hierarchy, refer to Note 7 of the Notes to the Consolidated Financial Statements in the Form 10-K. | ||||||||||||||
Non-Financial Assets and Liabilities | ||||||||||||||
The Company discloses or recognizes its non-financial assets and liabilities, such as impairments of oil and gas properties and other assets, at fair value on a nonrecurring basis. As none of the Company’s non-financial assets and liabilities were impaired as of March 31, 2014 and 2013 and no other assets or liabilities were required to be recognized at fair value on a non-recurring basis, additional disclosures were not provided. | ||||||||||||||
The estimated fair value of the Company’s asset retirement obligation at inception is determined by utilizing the income approach by applying a credit-adjusted risk-free rate, which takes into account the Company’s credit risk, the time value of money, and the current economic state, to the undiscounted expected abandonment cash flows. Given the unobservable nature of the inputs, the measurement of the asset retirement obligation was classified as Level 3 in the fair value hierarchy. | ||||||||||||||
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 | Significant Other | Significant | March 31, 2014 | ||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||
(Level 1) | (Level 3) | |||||||||||||
Assets | ||||||||||||||
Deferred compensation plan | $ | 12,886 | $ | — | $ | — | $ | 12,886 | ||||||
Derivative contracts | — | — | 4,041 | 4,041 | ||||||||||
Total assets | $ | 12,886 | $ | — | $ | 4,041 | $ | 16,927 | ||||||
Liabilities | ||||||||||||||
Deferred compensation plan | $ | 30,983 | $ | — | $ | — | $ | 30,983 | ||||||
Derivative contracts | — | 13,060 | 64,409 | 77,469 | ||||||||||
Total liabilities | $ | 30,983 | $ | 13,060 | $ | 64,409 | $ | 108,452 | ||||||
(In thousands) | Quoted Prices in | Significant Other | Significant | December 31, 2013 | ||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||
Identical Assets | (Level 2) | (Level 3) | ||||||||||||
(Level 1) | ||||||||||||||
Assets | ||||||||||||||
Deferred compensation plan | $ | 12,507 | $ | — | $ | — | $ | 12,507 | ||||||
Derivative contracts | — | — | 13,792 | 13,792 | ||||||||||
Total assets | $ | 12,507 | $ | — | $ | 13,792 | $ | 26,299 | ||||||
Liabilities | ||||||||||||||
Deferred compensation plan | $ | 33,211 | $ | — | $ | — | $ | 33,211 | ||||||
Derivative contracts | — | 6,983 | 17,702 | 24,685 | ||||||||||
Total liabilities | $ | 33,211 | $ | 6,983 | $ | 17,702 | $ | 57,896 | ||||||
The Company’s investments associated with its deferred compensation plan consist of mutual funds and deferred shares of the Company’s common stock that are publicly traded and for which market prices are readily available. | ||||||||||||||
The derivative instruments were measured based on quotes from the Company’s counterparties. Such quotes have been derived using an income approach that considers various inputs including current market and contractual prices for the underlying instruments, quoted forward prices for natural gas and crude oil, basis differentials, volatility factors and interest rates, such as a LIBOR curve for a similar length of time as the derivative contract term as applicable. Estimates are verified using relevant NYMEX futures contracts and/or are compared to multiple quotes obtained from counterparties for reasonableness. The determination of the fair values presented above also incorporates a credit adjustment for non-performance risk. The Company measured the non-performance risk of its counterparties by reviewing credit default swap spreads for the various financial institutions with which it has derivative transactions, while non-performance risk of the Company is evaluated using a market credit spread provided by the Company’s bank. | ||||||||||||||
The most significant unobservable inputs relative to the Company’s Level 3 derivative contracts are basis differentials and volatility factors. An increase (decrease) in these unobservable inputs would result in an increase (decrease) in fair value, respectively. The Company does not have access to the specific assumptions used in its counterparties’ valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided. | ||||||||||||||
The following table sets forth a reconciliation of changes in the fair value of financial assets / (liabilities) classified as Level 3 in the fair value hierarchy: | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||
Balance at beginning of period | $ | (3,910 | ) | $ | 41,159 | |||||||||
Total gains or (losses) (realized or unrealized): | ||||||||||||||
Included in earnings | (62,285 | ) | 13,328 | |||||||||||
Included in other comprehensive income | (56,458 | ) | (71,058 | ) | ||||||||||
Settlements | 62,285 | (13,328 | ) | |||||||||||
Transfers in and/or out of level 3 | — | — | ||||||||||||
Balance at end of period | $ | (60,368 | ) | $ | (29,899 | ) | ||||||||
There were no transfers between Level 1 and Level 2 measurements for the three months ended March 31, 2014 and 2013. | ||||||||||||||
Fair Value of Other Financial Instruments | ||||||||||||||
The estimated fair value of financial instruments is the amount at which the instrument could be exchanged currently between willing parties. The carrying amounts reported in the Condensed Consolidated Balance Sheet for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these instruments. | ||||||||||||||
The fair value of long-term debt is the estimated amount the Company would have to pay a third party to assume the debt, including a credit spread for the difference between the issue rate and the period end market rate. The credit spread is the Company’s default or repayment risk. The credit spread (premium or discount) is determined by comparing the Company’s fixed-rate notes and revolving credit facility to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The fair value of all fixed-rate notes and the revolving credit facility is based on interest rates currently available to the Company. The Company’s long-term debt is valued using an income approach and classified as Level 3 in the fair value hierarchy due to the unobservable nature of the inputs. | ||||||||||||||
The Company uses available market data and valuation methodologies to estimate the fair value of debt. The carrying amounts and fair values of long-term debt are as follows: | ||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
(In thousands) | Carrying | Estimated Fair | Carrying | Estimated Fair | ||||||||||
Amount | Value | Amount | Value | |||||||||||
Long-term debt | $ | 1,222,000 | $ | 1,325,174 | $ | 1,147,000 | $ | 1,224,273 | ||||||
Asset_Retirement_Obligation
Asset Retirement Obligation | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Asset Retirement Obligation | ' | ||||
Asset Retirement Obligation | ' | ||||
7. Asset Retirement Obligation | |||||
Activity related to the Company’s asset retirement obligation is as follows: | |||||
(In thousands) | Three Months Ended | ||||
March 31, 2014 | |||||
Balance at beginning of period | $ | 75,853 | |||
Liabilities incurred | 1,647 | ||||
Liabilities divested | (899 | ) | |||
Accretion expense | 1,003 | ||||
Balance at end of period | $ | 77,604 | |||
As of March 31, 2014, approximately $2.0 million, which represents the current portion of the Company’s asset retirement obligation, is included in accrued liabilities in the Condensed Consolidated Balance Sheet. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
8. Commitments and Contingencies | |
Contractual Obligations | |
The Company has various contractual obligations in the normal course of its operations. Except for certain new and amended transportation agreements described below, there have been no material changes to the Company’s contractual obligations described under “Transportation and Gathering Agreements”, “Drilling Rig Commitments” and “Lease Commitments” as disclosed in Note 9 in the Notes to Consolidated Financial Statements included in the Form 10-K. | |
Transportation and Gathering Agreements | |
During the first three months of 2014, the Company entered into or amended certain natural gas transportation agreements associated with the Company’s production in Pennsylvania. These agreements increased the Company’s future aggregate obligations under its transportation commitments by approximately $180.3 million over the next 10 years compared to those amounts in disclosed in Note 9 in the Notes to Consolidated Financial Statements included in the Form 10-K. | |
Legal Matters | |
The Company is a defendant in various legal proceedings arising in the normal course of business. All known liabilities are accrued when management determines they are probable based on its best estimate of the potential loss. While the outcome and impact of these legal proceedings on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings will not have a material effect on the Company’s financial position, results of operations or cash flows. | |
Contingency Reserves | |
When deemed necessary, the Company establishes reserves for certain legal proceedings. The establishment of a reserve is based on an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible that the Company could incur additional losses with respect to those matters in which reserves have been established. The Company believes that any such amount above the amounts accrued is not material to the Condensed Consolidated Financial Statements. Future changes in facts and circumstances not currently foreseeable could result in the actual liability exceeding the estimated ranges of loss and amounts accrued. | |
Environmental Matters | |
Pennsylvania Department of Environmental Protection | |
On December 15, 2010, the Company entered into a consent order and settlement agreement (CO&SA) with the Pennsylvania Department of Environmental Protection (PaDEP), addressing a number of environmental issues originally identified in 2008 and 2009, including alleged releases of drilling mud and other substances, alleged record keeping violations at various wells and alleged natural gas contamination of water supplies to 14 households in Susquehanna County, Pennsylvania. During 2010 and 2011, the Company paid a total of $1.3 million in settlement of fines and penalties sought or claimed by the PaDEP related to this matter. On January 11, 2011, certain of the affected households appealed the CO&SA to the Pennsylvania Environmental Hearing Board (PEHB). On October 17, 2011, the Company requested PaDEP approval to resume hydraulic fracturing and new natural gas well drilling operations in the affected area, along with a request to cease temporary water deliveries to the affected households pursuant to prior consent orders with the PaDEP. The PaDEP concurred that temporary water deliveries to the property owners are no longer necessary. On August 21, 2012, the PaDEP notified the Company that it could commence completion operations on existing wells within the concerned area. | |
On November 18, 2011, certain of the affected households appealed this order to the PEHB, which appeal was later consolidated with the CO&SA appeal. All appellants have accepted their portion of the $2.2 million that was placed into escrow in 2011 for their benefit and on October 18, 2012 had dismissed their appeal to the PEHB. Subsequent to the withdrawal of the appeals, the PEHB allowed three groups of appellants to reinstate their appeal. On April 1, 2014, on the motion of the appellants, the Court dismissed all claims on appeal. | |
Postretirement_Benefits
Postretirement Benefits | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Postretirement Benefits | ' | |||||||
Postretirement Benefits | ' | |||||||
9. Postretirement Benefits | ||||||||
The components of net periodic benefit costs, included in general and administrative expense in the Condensed Consolidated Statement of Operations, were as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Service cost | $ | 456 | $ | 415 | ||||
Interest cost | 407 | 395 | ||||||
Amortization of net loss | — | 205 | ||||||
$ | 863 | $ | 1,015 | |||||
Under the authoritative guidance, the net actuarial loss is not amortized if it is less than 10% of the postretirement obligation. Accordingly, the Company does not expect to amortize its net actuarial loss from accumulated other comprehensive income during 2014. |
Stockbased_Compensation
Stock-based Compensation | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Stock-based Compensation | ' | ||||||
Stock-based Compensation | ' | ||||||
10. Stock-based Compensation | |||||||
Stock-based compensation expense during the first three months of 2014 and 2013 was $3.2 million and $18.7 million, respectively, and is included in general and administrative expense in the Condensed Consolidated Statement of Operations. | |||||||
For the three months ended March 31, 2014 and 2013, the Company realized a $16.0 million and a $2.1 million tax benefit, respectively, related to the federal tax deduction in excess of book compensation cost for employee stock-based compensation. The Company is able to recognize this tax benefit only to the extent it reduces the Company’s income taxes payable. | |||||||
Restricted Stock Awards | |||||||
During the first three months of 2014, 44,000 restricted stock awards were granted to employees with a weighted-average grant date per share value of $35.00. The fair value of restricted stock grants is based on the average of the high and low stock price on the grant date. The Company used an annual forfeiture rate assumption of 5.0% for purposes of recognizing stock-based compensation expense for restricted stock awards. | |||||||
Restricted Stock Units | |||||||
During the first three months of 2014, 32,203 restricted stock units were granted to non-employee directors of the Company with a weighted-average grant date per unit value of $39.33. The fair value of these units is measured based on the average of the high and low stock price on grant date and compensation expense is recorded immediately. These units immediately vest and are issued when the director ceases to be a director of the Company. | |||||||
Performance Share Awards | |||||||
The performance period for the awards granted in 2014 commenced on January 1, 2014 and ends on December 31, 2016. The Company used an annual forfeiture rate assumption ranging from 0% to 5% for purposes of recognizing stock-based compensation expense for its performance share awards. Refer to Note 13 of the Notes to the Consolidated Financial Statements in the Form 10-K for further description of the various types of performance share awards and the applicable award terms. | |||||||
Performance Share Awards Based on Internal Performance Metrics | |||||||
The fair value of performance award grants based on internal performance metrics is based on the average of the high and low stock price on the grant date and represents the right to receive up to 100% of the award in shares of common stock. | |||||||
Employee Performance Share Awards. During the first three months of 2014, 241,130 Employee Performance Share Awards were granted at a grant date per share value of $39.43. 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 March 31, 2014, it is considered probable that the criteria for the performance awards based on performance conditions will be met. | |||||||
Hybrid Performance Share Awards. During the first three months of 2014, 123,257 Hybrid Performance Share Awards were granted at a grant date per share value of $39.43, which is based on the average of the high and low stock price on the grant date. The 2014 awards vest 25% on each of the first and second anniversary dates and 50% on the third anniversary, provided that the Company has $100 million or more of operating cash flow for the year preceding the vesting date, as set by the Company’s Compensation Committee. If the Company does not meet the performance metric for the applicable period, then the portion of the performance shares that would have been issued on that anniversary date will be forfeited. Based on the Company’s probability assessment at March 31, 2014, it is considered probable that the criteria for the performance awards based on performance conditions will be met. | |||||||
Performance Share Awards Based on Market Conditions | |||||||
These awards have both an equity and liability component, with the right to receive up to the first 100% of the award in shares of common stock and the right to receive up to an additional 100% of the value of the award in excess of the equity component in cash. The equity portion of these awards is valued on the grant date and is not marked to market, while the liability portion of the awards is valued as of the end of each reporting period on a mark-to-market basis. The Company calculates the fair value of the equity and liability portions of the awards using a Monte Carlo simulation model. | |||||||
TSR Performance Share Awards. During the first three months of 2014, 184,885 TSR Performance Share Awards were granted and are earned, or not earned, based on the comparative performance of the Company’s common stock measured against fourteen other companies in the Company’s peer group over a three-year performance period. | |||||||
The following assumptions were used to determine the grant date fair value of the equity component (February 20, 2014) and the period-end fair value of the liability component of the TSR Performance Share Awards: | |||||||
Grant Date | March 31, 2014 | ||||||
Fair value per performance share award | $ | 32.04 | $9.58 - $25.37 | ||||
Assumptions: | |||||||
Stock price volatility | 41.30% | 30.7% - 78.7% | |||||
Risk free rate of return | 0.70% | 0.1% - 0.8% | |||||
Expected dividend yield | 0.20% | 0.20% | |||||
Supplemental Employee Incentive Plan | |||||||
The Company recognized stock-based compensation expense of $1.5 million and $3.4 million for the three months ended March 31, 2014 and 2013, respectively, related to the Supplemental Employee Incentive Plan (the Plan) which is included in general and administrative expense in the Condensed Consolidated Statement of Operations. Refer to Note 13 of the Notes to the Consolidated Financial Statements in the Form 10-K for additional information on the provisions of the Plan. | |||||||
The following assumptions were used determine the period-end fair value of the SEIP IV liability using a Monte Carlo model: | |||||||
March 31, | |||||||
2014 | |||||||
Stock price volatility | 37.50% | ||||||
Risk free rate of return | 1.10% | ||||||
Annual salary increase rate | 4.00% | ||||||
Annual turnover rate | 4.60% |
Earnings_per_Common_Share
Earnings per Common Share | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Earnings per Common Share | ' | |||||
Earnings per Common Share | ' | |||||
11. Earnings per Common Share | ||||||
Basic EPS is computed by dividing net income (the numerator) by the weighted-average number of common shares outstanding for the period (the denominator). Diluted EPS is similarly calculated except that the denominator 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. | ||||||
Three Months Ended | ||||||
March 31, | ||||||
(In thousands) | 2014 | 2013 | ||||
Weighted-average shares - basic | 416,900 | 420,300 | ||||
Dilution effect of stock appreciation rights and stock awards at end of period | 1,613 | 2,452 | ||||
Weighted-average shares - diluted | 418,513 | 422,752 | ||||
Weighted-average shares excluded from diluted earnings per share due to the anti-dilutive effect | 272 | 368 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income / (Loss) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Accumulated Other Comprehensive Income / (Loss) | ' | ||||||||||
Accumulated Other Comprehensive Income / (Loss) | ' | ||||||||||
12. Accumulated Other Comprehensive Income / (Loss) | |||||||||||
Changes in accumulated other comprehensive income / (loss) by component, net of tax, were as follows: | |||||||||||
(In thousands) | Net Gains / | Postretirement | Total | ||||||||
(Losses) on | Benefits | ||||||||||
Cash Flow | |||||||||||
Hedges | |||||||||||
Balance at December 31, 2013 | $ | (6,551 | ) | $ | (1,810 | ) | $ | (8,361 | ) | ||
Other comprehensive income before reclassifications | (80,175 | ) | — | (80,175 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | 42,565 | — | 42,565 | ||||||||
Net current-period other comprehensive income | (37,610 | ) | — | (37,610 | ) | ||||||
Balance at March 31, 2014 | $ | (44,161 | ) | $ | (1,810 | ) | $ | (45,971 | ) | ||
Amounts reclassified from accumulated other comprehensive income / (loss) into the Condensed Consolidated Statement of Operations were as follows: | |||||||||||
Three Months Ended | |||||||||||
March 31, | Affected Line Item in the Condensed | ||||||||||
(In thousands) | 2014 | 2013 | Consolidated Statement of Operations | ||||||||
Net gains / (losses) on cash flow hedges | |||||||||||
Commodity contracts | $ | (70,557 | ) | 13,328 | Natural gas revenues | ||||||
Commodity contracts | (218 | ) | 2,042 | Crude oil and condensate revenues | |||||||
Postretirement benefits | |||||||||||
Amortization of net loss | — | (205 | ) | General and administrative expense | |||||||
(70,775 | ) | 15,165 | Total before tax | ||||||||
28,210 | (5,965 | ) | Tax (expense) / benefit | ||||||||
Total reclassifications for the period | $ | (42,565 | ) | 9,200 | Net of tax |
ADDITIONAL_BALANCE_SHEET_INFOR
ADDITIONAL BALANCE SHEET INFORMATION | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
ADDITIONAL BALANCE SHEET INFORMATION | ' | |||||||
ADDITIONAL BALANCE SHEET INFORMATION | ' | |||||||
13. ADDITIONAL BALANCE SHEET INFORMATION | ||||||||
Certain balance sheet amounts are comprised of the following: | ||||||||
March 31, | December 31, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Accounts receivable, net | ||||||||
Trade accounts | $ | 242,367 | $ | 215,361 | ||||
Joint interest accounts | 3,469 | 7,261 | ||||||
Income taxes receivable | 532 | 922 | ||||||
Other accounts | 516 | 746 | ||||||
246,884 | 224,290 | |||||||
Allowance for doubtful accounts | (1,811 | ) | (1,814 | ) | ||||
$ | 245,073 | $ | 222,476 | |||||
Inventories | ||||||||
Natural gas in storage | $ | 3,169 | $ | 9,056 | ||||
Tubular goods and well equipment | 7,193 | 8,396 | ||||||
Other accounts | 30 | 16 | ||||||
$ | 10,392 | $ | 17,468 | |||||
Other current assets | ||||||||
Prepaid balances and other | 1,415 | 2,587 | ||||||
Derivative instruments | — | 3,019 | ||||||
$ | 1,415 | $ | 5,606 | |||||
Other assets | ||||||||
Deferred compensation plan | $ | 12,886 | $ | 12,507 | ||||
Debt issuance cost | 15,350 | 16,476 | ||||||
Equity method investment | 32,971 | 26,892 | ||||||
Other accounts | 169 | 79 | ||||||
$ | 61,376 | $ | 55,954 | |||||
Accounts payable | ||||||||
Trade accounts | $ | 56,956 | $ | 26,023 | ||||
Natural gas purchases | 2,933 | 2,052 | ||||||
Royalty and other owners | 83,902 | 79,150 | ||||||
Accrued capital costs | 120,091 | 146,899 | ||||||
Taxes other than income | 18,869 | 13,677 | ||||||
Drilling advances | 8,334 | 14,093 | ||||||
Producer gas imbalances | 69 | 69 | ||||||
Other accounts | 6,531 | 6,838 | ||||||
$ | 297,685 | $ | 288,801 | |||||
Accrued liabilities | ||||||||
Employee benefits | $ | 24,645 | $ | 43,599 | ||||
Taxes other than income | 6,797 | 6,894 | ||||||
Interest payable | 12,637 | 20,211 | ||||||
Other accounts | 3,124 | 2,897 | ||||||
$ | 47,203 | $ | 73,601 | |||||
Other liabilities | ||||||||
Deferred compensation plan | $ | 30,983 | $ | 33,211 | ||||
Other accounts | 6,899 | 13,043 | ||||||
$ | 37,882 | $ | 46,254 |
Properties_and_Equipment_Net_T
Properties and Equipment, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Properties and Equipment, Net | ' | |||||||
Schedule of properties and equipment, net | ' | |||||||
March 31, | December 31, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Proved oil and gas properties | $ | 6,676,002 | $ | 6,362,570 | ||||
Unproved oil and gas properties | 365,186 | 375,428 | ||||||
Gathering and pipeline systems | 239,925 | 239,958 | ||||||
Land, building and other equipment | 97,082 | 94,243 | ||||||
7,378,195 | 7,072,199 | |||||||
Accumulated depreciation, depletion and amortization | (2,667,626 | ) | (2,525,972 | ) | ||||
$ | 4,710,569 | $ | 4,546,227 |
Debt_and_Credit_Agreements_Tab
Debt and Credit Agreements (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt and Credit Agreements | ' | |||||||
Company's Long-Term Debt and credit agreements Components | ' | |||||||
March 31, | December 31, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Long-Term Debt | ||||||||
7.33% weighted-average fixed rate notes | $ | 20,000 | $ | 20,000 | ||||
6.51% weighted-average fixed rate notes | 425,000 | 425,000 | ||||||
9.78% notes | 67,000 | 67,000 | ||||||
5.58% weighted-average fixed rate notes | 175,000 | 175,000 | ||||||
Credit facility | 535,000 | 460,000 | ||||||
$ | 1,222,000 | $ | 1,147,000 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||||||
Outstanding commodity derivatives | ' | ||||||||||||||||||||||
As of March 31, 2014, the Company had the following outstanding commodity derivatives: | |||||||||||||||||||||||
Collars | Swaps | ||||||||||||||||||||||
Floor | Ceiling | ||||||||||||||||||||||
Type of Contract | Volume | Contract Period | Range | Weighted- | Range | Weighted- | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Natural gas | 253.8 | Bcf | Apr. 2014 - Dec. 2014 | $3.60-$4.37 | $ | 4.13 | $4.22-$4.80 | $ | 4.51 | ||||||||||||||
Natural gas | 80.1 | Bcf | Apr. 2014 - Dec. 2014 | $ | 4.05 | ||||||||||||||||||
Crude oil | 550 | Mbbl | Apr. 2014 - Dec. 2014 | $ | 97 | ||||||||||||||||||
Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet | ' | ||||||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||
(In thousands) | Balance Sheet Location | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Commodity contracts | Other current assets | $ | — | $ | 3,019 | $ | — | $ | — | ||||||||||||||
Commodity contracts | Derivative instruments (current liabilites) | — | — | 73,428 | 13,912 | ||||||||||||||||||
$ | — | $ | 3,019 | $ | 73,428 | $ | 13,912 | ||||||||||||||||
Schedule of offsetting of derivative assets and liabilities in the condensed consolidated balance sheet | ' | ||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||||
Gross amounts of recognized assets | $ | 4,041 | $ | 13,792 | |||||||||||||||||||
Gross amounts offset in the statement of financial position | (4,041 | ) | (10,773 | ) | |||||||||||||||||||
Net amounts of assets presented in the statement of financial position | — | 3,019 | |||||||||||||||||||||
Gross amounts of financial instruments not offset in the statement of financial position | — | 373 | |||||||||||||||||||||
Net amount | $ | — | $ | 3,392 | |||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||||
Gross amounts of recognized liabilities | $ | 77,469 | $ | 24,685 | |||||||||||||||||||
Gross amounts offset in the statement of financial position | (4,041 | ) | (10,773 | ) | |||||||||||||||||||
Net amounts of liabilities presented in the statement of financial position | 73,428 | 13,912 | |||||||||||||||||||||
Gross amounts of financial instruments not offset in the statement of financial position | 218 | — | |||||||||||||||||||||
Net amount | $ | 73,646 | $ | 13,912 | |||||||||||||||||||
Amount of gain (loss) recognized in other comprehensive income / (loss) on dervatives | ' | ||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||||
Commodity contracts | $ | (133,310 | ) | $ | (60,946 | ) | |||||||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income / (loss) | ' | ||||||||||||||||||||||
(In thousands) | Three Months Ended | ||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Natural gas revenues | $ | (70,557 | ) | $ | 13,328 | ||||||||||||||||||
Crude oil and condensate revenues | (218 | ) | 2,042 | ||||||||||||||||||||
$ | (70,775 | ) | $ | 15,370 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||
(In thousands) | Quoted Prices in | Significant Other | Significant | March 31, 2014 | ||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||
(Level 1) | (Level 3) | |||||||||||||
Assets | ||||||||||||||
Deferred compensation plan | $ | 12,886 | $ | — | $ | — | $ | 12,886 | ||||||
Derivative contracts | — | — | 4,041 | 4,041 | ||||||||||
Total assets | $ | 12,886 | $ | — | $ | 4,041 | $ | 16,927 | ||||||
Liabilities | ||||||||||||||
Deferred compensation plan | $ | 30,983 | $ | — | $ | — | $ | 30,983 | ||||||
Derivative contracts | — | 13,060 | 64,409 | 77,469 | ||||||||||
Total liabilities | $ | 30,983 | $ | 13,060 | $ | 64,409 | $ | 108,452 | ||||||
(In thousands) | Quoted Prices in | Significant Other | Significant | December 31, 2013 | ||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||
Identical Assets | (Level 2) | (Level 3) | ||||||||||||
(Level 1) | ||||||||||||||
Assets | ||||||||||||||
Deferred compensation plan | $ | 12,507 | $ | — | $ | — | $ | 12,507 | ||||||
Derivative contracts | — | — | 13,792 | 13,792 | ||||||||||
Total assets | $ | 12,507 | $ | — | $ | 13,792 | $ | 26,299 | ||||||
Liabilities | ||||||||||||||
Deferred compensation plan | $ | 33,211 | $ | — | $ | — | $ | 33,211 | ||||||
Derivative contracts | — | 6,983 | 17,702 | 24,685 | ||||||||||
Total liabilities | $ | 33,211 | $ | 6,983 | $ | 17,702 | $ | 57,896 | ||||||
Fair Value of Financial Assets and Liabilities Classified as Level 3 | ' | |||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||
Balance at beginning of period | $ | (3,910 | ) | $ | 41,159 | |||||||||
Total gains or (losses) (realized or unrealized): | ||||||||||||||
Included in earnings | (62,285 | ) | 13,328 | |||||||||||
Included in other comprehensive income | (56,458 | ) | (71,058 | ) | ||||||||||
Settlements | 62,285 | (13,328 | ) | |||||||||||
Transfers in and/or out of level 3 | — | — | ||||||||||||
Balance at end of period | $ | (60,368 | ) | $ | (29,899 | ) | ||||||||
Carrying amounts and fair values of long-term debt | ' | |||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
(In thousands) | Carrying | Estimated Fair | Carrying | Estimated Fair | ||||||||||
Amount | Value | Amount | Value | |||||||||||
Long-term debt | $ | 1,222,000 | $ | 1,325,174 | $ | 1,147,000 | $ | 1,224,273 | ||||||
Asset_Retirement_Obligation_Ta
Asset Retirement Obligation (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Asset Retirement Obligation | ' | ||||
Asset Retirement Obligation | ' | ||||
(In thousands) | Three Months Ended | ||||
March 31, 2014 | |||||
Balance at beginning of period | $ | 75,853 | |||
Liabilities incurred | 1,647 | ||||
Liabilities divested | (899 | ) | |||
Accretion expense | 1,003 | ||||
Balance at end of period | $ | 77,604 |
Postretirement_Benefits_Tables
Postretirement Benefits (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Postretirement Benefits | ' | |||||||
Components of net periodic benefit costs | ' | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Service cost | $ | 456 | $ | 415 | ||||
Interest cost | 407 | 395 | ||||||
Amortization of net loss | — | 205 | ||||||
$ | 863 | $ | 1,015 |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
SEIP IV | ' | ||||||
Stock-Based Compensation arrangements | ' | ||||||
Schedule of Value per Share and Assumptions Used | ' | ||||||
March 31, | |||||||
2014 | |||||||
Stock price volatility | 37.50% | ||||||
Risk free rate of return | 1.10% | ||||||
Annual salary increase rate | 4.00% | ||||||
Annual turnover rate | 4.60% | ||||||
TSR Performance Share Awards | ' | ||||||
Stock-Based Compensation arrangements | ' | ||||||
Schedule of Value per Share and Assumptions Used | ' | ||||||
Grant Date | March 31, 2014 | ||||||
Fair value per performance share award | $ | 32.04 | $9.58 - $25.37 | ||||
Assumptions: | |||||||
Stock price volatility | 41.30% | 30.7% - 78.7% | |||||
Risk free rate of return | 0.70% | 0.1% - 0.8% | |||||
Expected dividend yield | 0.20% | 0.20% | |||||
Earnings_per_Common_Share_Tabl
Earnings per Common Share (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Earnings per Common Share | ' | |||||
Calculation of basic and diluted weighted-average shares outstanding | ' | |||||
Three Months Ended | ||||||
March 31, | ||||||
(In thousands) | 2014 | 2013 | ||||
Weighted-average shares - basic | 416,900 | 420,300 | ||||
Dilution effect of stock appreciation rights and stock awards at end of period | 1,613 | 2,452 | ||||
Weighted-average shares - diluted | 418,513 | 422,752 | ||||
Weighted-average shares excluded from diluted earnings per share due to the anti-dilutive effect | 272 | 368 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income / (Loss) (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Accumulated Other Comprehensive Income / (Loss) | ' | ||||||||||
Changes in accumulated other comprehensive income / (loss) by component, net of tax | ' | ||||||||||
(In thousands) | Net Gains / | Postretirement | Total | ||||||||
(Losses) on | Benefits | ||||||||||
Cash Flow | |||||||||||
Hedges | |||||||||||
Balance at December 31, 2013 | $ | (6,551 | ) | $ | (1,810 | ) | $ | (8,361 | ) | ||
Other comprehensive income before reclassifications | (80,175 | ) | — | (80,175 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | 42,565 | — | 42,565 | ||||||||
Net current-period other comprehensive income | (37,610 | ) | — | (37,610 | ) | ||||||
Balance at March 31, 2014 | $ | (44,161 | ) | $ | (1,810 | ) | $ | (45,971 | ) | ||
Schedule of amount reclassified from accumulated other comprehensive income / (loss) into the Condensed Consolidated Statement of Operations | ' | ||||||||||
Three Months Ended | |||||||||||
March 31, | Affected Line Item in the Condensed | ||||||||||
(In thousands) | 2014 | 2013 | Consolidated Statement of Operations | ||||||||
Net gains / (losses) on cash flow hedges | |||||||||||
Commodity contracts | $ | (70,557 | ) | 13,328 | Natural gas revenues | ||||||
Commodity contracts | (218 | ) | 2,042 | Crude oil and condensate revenues | |||||||
Postretirement benefits | |||||||||||
Amortization of net loss | — | (205 | ) | General and administrative expense | |||||||
(70,775 | ) | 15,165 | Total before tax | ||||||||
28,210 | (5,965 | ) | Tax (expense) / benefit | ||||||||
Total reclassifications for the period | $ | (42,565 | ) | 9,200 | Net of tax |
ADDITIONAL_BALANCE_SHEET_INFOR1
ADDITIONAL BALANCE SHEET INFORMATION (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
ADDITIONAL BALANCE SHEET INFORMATION | ' | |||||||
Additional Balance Sheet Information | ' | |||||||
March 31, | December 31, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Accounts receivable, net | ||||||||
Trade accounts | $ | 242,367 | $ | 215,361 | ||||
Joint interest accounts | 3,469 | 7,261 | ||||||
Income taxes receivable | 532 | 922 | ||||||
Other accounts | 516 | 746 | ||||||
246,884 | 224,290 | |||||||
Allowance for doubtful accounts | (1,811 | ) | (1,814 | ) | ||||
$ | 245,073 | $ | 222,476 | |||||
Inventories | ||||||||
Natural gas in storage | $ | 3,169 | $ | 9,056 | ||||
Tubular goods and well equipment | 7,193 | 8,396 | ||||||
Other accounts | 30 | 16 | ||||||
$ | 10,392 | $ | 17,468 | |||||
Other current assets | ||||||||
Prepaid balances and other | 1,415 | 2,587 | ||||||
Derivative instruments | — | 3,019 | ||||||
$ | 1,415 | $ | 5,606 | |||||
Other assets | ||||||||
Deferred compensation plan | $ | 12,886 | $ | 12,507 | ||||
Debt issuance cost | 15,350 | 16,476 | ||||||
Equity method investment | 32,971 | 26,892 | ||||||
Other accounts | 169 | 79 | ||||||
$ | 61,376 | $ | 55,954 | |||||
Accounts payable | ||||||||
Trade accounts | $ | 56,956 | $ | 26,023 | ||||
Natural gas purchases | 2,933 | 2,052 | ||||||
Royalty and other owners | 83,902 | 79,150 | ||||||
Accrued capital costs | 120,091 | 146,899 | ||||||
Taxes other than income | 18,869 | 13,677 | ||||||
Drilling advances | 8,334 | 14,093 | ||||||
Producer gas imbalances | 69 | 69 | ||||||
Other accounts | 6,531 | 6,838 | ||||||
$ | 297,685 | $ | 288,801 | |||||
Accrued liabilities | ||||||||
Employee benefits | $ | 24,645 | $ | 43,599 | ||||
Taxes other than income | 6,797 | 6,894 | ||||||
Interest payable | 12,637 | 20,211 | ||||||
Other accounts | 3,124 | 2,897 | ||||||
$ | 47,203 | $ | 73,601 | |||||
Other liabilities | ||||||||
Deferred compensation plan | $ | 30,983 | $ | 33,211 | ||||
Other accounts | 6,899 | 13,043 | ||||||
$ | 37,882 | $ | 46,254 |
Properties_and_Equipment_Net_D
Properties and Equipment, Net (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Properties and Equipment, Net | ' | ' |
Proved oil and gas properties | $6,676,002 | $6,362,570 |
Unproved oil and gas properties | 365,186 | 375,428 |
Gathering and pipeline systems | 239,925 | 239,958 |
Land, building and other equipment | 97,082 | 94,243 |
Properties and Equipment, gross, total | 7,378,195 | 7,072,199 |
Accumulated depreciation, depletion and amortization | -2,667,626 | -2,525,972 |
Properties and Equipment, Net | $4,710,569 | $4,546,227 |
Properties_and_Equipment_Net_D1
Properties and Equipment, Net (Details 2) | 3 Months Ended |
Mar. 31, 2014 | |
Properties and Equipment, Net | ' |
Minimum term of capitalization of exploratory well costs | '1 year |
Equity_Method_Investment_Detai
Equity Method Investment (Details) (Meade Pipeline Co LLC, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Feb. 28, 2014 |
mi | ||
Equity Method Investment | ' | ' |
Ownership interest (as a percent) | ' | 20.00% |
Length of pipeline to be constructed (in miles) | 177 | ' |
Amount of investment | ' | $149 |
Minimum | ' | ' |
Equity Method Investment | ' | ' |
Number of years of investment expected to occur | '3 years | ' |
Maximum | ' | ' |
Equity Method Investment | ' | ' |
Number of years of investment expected to occur | '4 years | ' |
Debt_and_Credit_Agreements_Det
Debt and Credit Agreements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 15, 2014 |
7.33% weighted-average fixed rate notes | 7.33% weighted-average fixed rate notes | 6.51% weighted-average fixed rate notes | 6.51% weighted-average fixed rate notes | 9.78% notes | 9.78% notes | 5.58% weighted-average fixed rate notes | 5.58% weighted-average fixed rate notes | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | |||
Subsequent event | |||||||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | ' | ' | $20,000,000 | $20,000,000 | $425,000,000 | $425,000,000 | $67,000,000 | $67,000,000 | $175,000,000 | $175,000,000 | $535,000,000 | $460,000,000 | ' |
Long-term debt | 1,222,000,000 | 1,147,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 535,000,000 | ' | ' |
Weighted-average interest rate (as a percent) | ' | ' | 7.33% | 7.33% | 6.51% | 6.51% | ' | ' | 5.58% | 5.58% | 2.20% | ' | ' |
Availability under the credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 864,000,000 | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | 9.78% | 9.78% | ' | ' | ' | ' | ' |
Borrowing base prior to approval | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000,000 |
Borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000,000 |
Line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,400,000,000 | ' | ' |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Details) (Derivatives Designated as Hedging Instruments) | Mar. 31, 2014 |
MMcf | |
Natural Gas Collars with contract period of Apr. 2014 - Dec. 2014 | ' |
Derivative disclosures | ' |
Volume | 253,800 |
Natural Gas Collars with contract period of Apr. 2014 - Dec. 2014 | Minimum | ' |
Derivative disclosures | ' |
Collar Floor Price | 3.6 |
Collar Ceiling Price | 4.22 |
Natural Gas Collars with contract period of Apr. 2014 - Dec. 2014 | Maximum | ' |
Derivative disclosures | ' |
Collar Floor Price | 4.37 |
Collar Ceiling Price | 4.8 |
Natural Gas Collars with contract period of Apr. 2014 - Dec. 2014 | Weighted Average | ' |
Derivative disclosures | ' |
Collar Floor Price | 4.13 |
Collar Ceiling Price | 4.51 |
Natural Gas Swaps with contract period of Apr. 2014 - Dec. 2014 | Weighted Average | ' |
Derivative disclosures | ' |
Volume | 80,100 |
Swaps Weighted Average | 4.05 |
Crude Oil Swaps with contract period of Apr. 2014 - Dec. 2014 | Weighted Average | ' |
Derivative disclosures | ' |
Volume | 550 |
Swaps Weighted Average | 97 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Details 2) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Effect of derivative instruments on the Consolidated Balance Sheet | ' | ' |
Fair Value Asset | ' | $3,019,000 |
Fair Value Liability | 73,428,000 | 13,912,000 |
Unrealized losses included in accumulated other comprehensive income, pretax | 73,400,000 | 10,900,000 |
Unrealized gain (loss) included in accumulated other comprehensive income, net of tax | -44,200,000 | 6,600,000 |
Expected reclassification of income (loss) from commodity hedges over the next 9 months | 44,200,000 | ' |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other current assets | ' | ' |
Effect of derivative instruments on the Consolidated Balance Sheet | ' | ' |
Fair Value Asset | ' | 3,019,000 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Derivative instruments (current liabilities) | ' | ' |
Effect of derivative instruments on the Consolidated Balance Sheet | ' | ' |
Fair Value Liability | $73,428,000 | $13,912,000 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Assets | ' | ' |
Gross amounts of recognized assets | $4,041 | $13,792 |
Gross amounts offset in the statement of financial position | -4,041 | -10,773 |
Net amounts of assets presented in the statement of financial position | ' | 3,019 |
Gross amounts financial instrument not offset in the statement of financial position | ' | 373 |
Net amount | ' | 3,392 |
Derivative Liabilities | ' | ' |
Gross amounts of recognized liabilities | 77,469 | 24,685 |
Gross amounts offset in the statement of financial position | -4,041 | -10,773 |
Net amounts of liabilities presented in the statement of financial position | 73,428 | 13,912 |
Gross amounts of financial instruments not offset in the statement of financial position | 218 | ' |
Net amount | $73,646 | $13,912 |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Effect of derivative instruments on the Consolidated Statement of Operations | ' | ' |
Ineffectiveness related to derivative instruments | $0 | $0 |
Derivatives Designated as Hedging Instruments | ' | ' |
Effect of derivative instruments on the Consolidated Statement of Operations | ' | ' |
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | -70,775 | 15,370 |
Derivatives Designated as Hedging Instruments | Natural Gas Revenues | ' | ' |
Effect of derivative instruments on the Consolidated Statement of Operations | ' | ' |
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | -70,557 | 13,328 |
Derivatives Designated as Hedging Instruments | Crude Oil and Condensate Revenues | ' | ' |
Effect of derivative instruments on the Consolidated Statement of Operations | ' | ' |
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | -218 | 2,042 |
Derivatives Designated as Hedging Instruments | Commodity contracts | ' | ' |
Effect of derivative instruments on the Consolidated Statement of Operations | ' | ' |
Amount of gain (loss) recognized in other comprehensive income (loss) on derivative (effective portion) | ($133,310) | ($60,946) |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
item | item | ||
Financial Assets and Liabilities Fair Value Measurement | ' | ' | ' |
Number of non-financial assets and liabilities impaired | 0 | 0 | ' |
Assets | ' | ' | ' |
Deferred compensation plan | $12,886 | ' | $12,507 |
Derivative contracts | 4,041 | ' | 13,792 |
Total assets | 16,927 | ' | 26,299 |
Liabilities | ' | ' | ' |
Deferred compensation plan | 30,983 | ' | 33,211 |
Derivative contracts | 77,469 | ' | 24,685 |
Total liabilities | 108,452 | ' | 57,896 |
Transfer of Assets from Level 1 to Level 2 | 0 | 0 | ' |
Transfer of Liabilities from Level 1 to Level 2 | 0 | 0 | ' |
Transfer of Assets from Level 2 to Level 1 | 0 | 0 | ' |
Transfer of Liabilities from Level 2 to Level 1 | 0 | 0 | ' |
Non-recurring basis | ' | ' | ' |
Assets | ' | ' | ' |
Total assets | 0 | ' | ' |
Non-financial assets | 0 | ' | ' |
Liabilities | ' | ' | ' |
Total liabilities | 0 | ' | ' |
Non-financial liabilities | 0 | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis | ' | ' | ' |
Assets | ' | ' | ' |
Deferred compensation plan | 12,886 | ' | 12,507 |
Total assets | 12,886 | ' | 12,507 |
Liabilities | ' | ' | ' |
Deferred compensation plan | 30,983 | ' | 33,211 |
Total liabilities | 30,983 | ' | 33,211 |
Significant Other Observable Inputs (Level 2) | Recurring basis | ' | ' | ' |
Liabilities | ' | ' | ' |
Derivative contracts | 13,060 | ' | 6,983 |
Total liabilities | 13,060 | ' | 6,983 |
Significant Unobservable Inputs (Level 3) | Recurring basis | ' | ' | ' |
Assets | ' | ' | ' |
Derivative contracts | 4,041 | ' | 13,792 |
Total assets | 4,041 | ' | 13,792 |
Liabilities | ' | ' | ' |
Derivative contracts | 64,409 | ' | 17,702 |
Total liabilities | $64,409 | ' | $17,702 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
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 | ($3,910) | $41,159 |
Total gains or (losses) (realized or unrealized): | ' | ' |
Included in earnings | -62,285 | 13,328 |
Included in other comprehensive income | -56,458 | -71,058 |
Settlements | 62,285 | -13,328 |
Balance at end of period | -60,368 | -29,899 |
Transfers between Level 1 and Level 2 measurements | $0 | $0 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ' | ' |
Fair value disclosures | ' | ' |
Long-term debt | $1,222,000 | $1,147,000 |
Estimated Fair Value | ' | ' |
Fair value disclosures | ' | ' |
Long-term debt | $1,325,174 | $1,224,273 |
Asset_Retirement_Obligation_De
Asset Retirement Obligation (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Asset Retirement Obligation | ' |
Balance at the beginning of the period | $75,853,000 |
Liabilities incurred | 1,647,000 |
Liabilities divested | -899,000 |
Accretion expense | 1,003,000 |
Balance at the end of the period | 77,604,000 |
Asset retirement obligation, current | $2,000,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Transportation and Gathering Agreements, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Transportation and Gathering Agreements | ' |
Commitments and Contingencies | ' |
Amount of increase in the future aggregate obligations under the transportation commitments | $180.30 |
Period over which increase in transportation and gathering agreements obligation is affected | '10 years |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details 2) (Pennsylvania Department of Environmental Protection (PaDEP), USD $) | 0 Months Ended | 24 Months Ended | ||
In Millions, unless otherwise specified | Oct. 18, 2012 | Dec. 31, 2011 | Nov. 18, 2011 | Dec. 15, 2010 |
item | item | |||
Pennsylvania Department of Environmental Protection (PaDEP) | ' | ' | ' | ' |
Environmental Matters | ' | ' | ' | ' |
Modified Consent Order, number of households to be supplied with potable water | ' | ' | ' | 14 |
Aggregate amount of fines and civil penalties paid to PaDEP | ' | $1.30 | ' | ' |
Aggregate amount of settlement paid to and accepted by the appellants | ' | ' | $2.20 | ' |
Number of appellants who were allowed by PEHB to reinstate their appeal | 3 | ' | ' | ' |
Postretirement_Benefits_Detail
Postretirement Benefits (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Components of Net Periodic Benefit Cost | ' | ' |
Service Cost | $456 | $415 |
Interest Cost | 407 | 395 |
Amortization of net loss | ' | 205 |
Net periodic pension cost | $863 | $1,015 |
Stockbased_Compensation_Detail
Stock-based Compensation (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Feb. 20, 2014 | Mar. 31, 2014 |
Supplemental Employee Incentive Plan IV | Supplemental Employee Incentive Plan IV | Restricted Stock Awards | Restricted Stock Units | Performance Share Awards | Performance Share Awards | Performance Share Awards Based on Internal Performance Metrics | Employee Performance Share Awards | Hybrid Performance Share Awards | Performance Shares Based on Market Conditions | TSR Performance Share Awards | TSR Performance Share Awards | |||
Minimum | Maximum | Maximum | Maximum | item | ||||||||||
Stock-based Compensation arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation expense | $3.20 | $18.70 | $1.50 | $3.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefits realized for stock-based compensation | 16 | 2.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | 44,000 | 32,203 | ' | ' | ' | 241,130 | 123,257 | ' | ' | 184,885 |
Granted (in dollars per share) | ' | ' | ' | ' | $35 | $39.33 | ' | ' | ' | $39.43 | $39.43 | ' | ' | ' |
Number of years over which performance criteria is to be met | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | '3 years |
Annual forfeiture rate assumption (as a percent) | ' | ' | ' | ' | 5.00% | ' | 0.00% | 5.00% | ' | ' | ' | ' | ' | ' |
Right to receive shares (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | 100.00% | ' | ' |
Vesting rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The 2014 awards vest 25% on each of the first and second anniversary dates and 50% on the third anniversary | ' | ' | ' |
Minimum operating cash flow for the year preceding the performance period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100 | ' | ' | ' |
Right to receive additional shares (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Number of other companies in the Company's peer group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 |
Assumptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value per performance share award (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $32.04 | ' |
Fair value per performance share award Assumptions, low end of range (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.58 |
Fair value per performance share award Assumptions, high end of range (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25.37 |
Stock price volatility (as a percent) | ' | ' | 37.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41.30% | ' |
Stock Price Volatility, low end of range (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.70% |
Stock Price Volatility, high end of range (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 78.70% |
Risk free rate of return (as a percent) | ' | ' | 1.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.70% | ' |
Risk free rate of return, low end of range (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.10% |
Risk free rate of return, high end of range (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.80% |
Expected dividend yield (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.20% | 0.20% |
Annual salary increase rate (as a percent) | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual turnover rate | ' | ' | 4.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_per_Common_Share_Deta
Earnings per Common Share (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings per Common Share | ' | ' |
Weighted-average shares - basic | 416,900 | 420,300 |
Dilution effect of stock appreciation rights and stock awards at end of period (in shares) | 1,613 | 2,452 |
Weighted-average shares - diluted | 418,513 | 422,752 |
Weighted-average shares excluded from diluted earnings per share due to the anti-dilutive effect | 272 | 368 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income / (Loss) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Net Gains/ (Losses) on Cash Flow Hedges | Postretirement Benefits | Postretirement Benefits | ||
Changes in accumulated other comprehensive income / (loss) by component, net of tax | ' | ' | ' | ' |
Balance at beginning of period | ($8,361) | ($6,551) | ($1,810) | ($1,810) |
Other comprehensive income before reclassifications | -80,175 | -80,175 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | 42,565 | 42,565 | ' | ' |
Net current-period other comprehensive income | -37,610 | -37,610 | ' | ' |
Balance at end of period | ($45,971) | ($44,161) | ($1,810) | ($1,810) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income / (Loss) (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | ' | ' |
Natural gas revenues | $432,809 | $293,793 |
Crude oil and condensate revenues | 59,144 | 65,655 |
Income before income taxes | 177,930 | 70,759 |
Tax (expense) / benefit | -70,899 | -27,935 |
NET INCOME | 107,031 | 42,824 |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' |
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | ' | ' |
Income before income taxes | -70,775 | 15,165 |
Tax (expense) / benefit | 28,210 | -5,965 |
NET INCOME | -42,565 | 9,200 |
Net gains / (losses) on cash flow hedges | Amount Reclassified from Accumulated Other Comprehensive Income | Commodity contracts | ' | ' |
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | ' | ' |
Natural gas revenues | -70,557 | 13,328 |
Crude oil and condensate revenues | -218 | 2,042 |
Postretirement benefits | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' |
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | ' | ' |
Amortization of net loss | ' | ($205) |
ADDITIONAL_BALANCE_SHEET_INFOR2
ADDITIONAL BALANCE SHEET INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Accounts receivable, net | ' | ' |
Trade accounts | $242,367 | $215,361 |
Joint interest accounts | 3,469 | 7,261 |
Income taxes receivable | 532 | 922 |
Other accounts | 516 | 746 |
Accounts receivable, gross | 246,884 | 224,290 |
Allowance for doubtful accounts | -1,811 | -1,814 |
Accounts receivable, net | 245,073 | 222,476 |
Inventories | ' | ' |
Natural gas in storage | 3,169 | 9,056 |
Tubular goods and well equipment | 7,193 | 8,396 |
Other accounts | 30 | 16 |
Inventory, net | 10,392 | 17,468 |
Other current assets | ' | ' |
Prepaid balances and other | 1,415 | 2,587 |
Derivative instruments | ' | 3,019 |
Other current assets | 1,415 | 5,606 |
Other assets | ' | ' |
Deferred compensation plan | 12,886 | 12,507 |
Debt issuance costs | 15,350 | 16,476 |
Equity method investment | 32,971 | 26,892 |
Other accounts | 169 | 79 |
Other assets | 61,376 | 55,954 |
Accounts payable | ' | ' |
Trade accounts | 56,956 | 26,023 |
Natural gas purchases | 2,933 | 2,052 |
Royalty and other owners | 83,902 | 79,150 |
Accrued capital costs | 120,091 | 146,899 |
Taxes other than income | 18,869 | 13,677 |
Drilling advances | 8,334 | 14,093 |
Producer gas imbalances | 69 | 69 |
Other accounts | 6,531 | 6,838 |
Accounts payable current | 297,685 | 288,801 |
Accrued liabilities | ' | ' |
Employee benefits | 24,645 | 43,599 |
Taxes other than income | 6,797 | 6,894 |
Interest payable | 12,637 | 20,211 |
Other accounts | 3,124 | 2,897 |
Accrued liabilities | 47,203 | 73,601 |
Other liabilities | ' | ' |
Deferred compensation plan | 30,983 | 33,211 |
Other accounts | 6,899 | 13,043 |
Other liabilities | $37,882 | $46,254 |