Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 |
Document and Entity Information | |||
Entity Registrant Name | CABOT OIL & GAS CORP | ||
Entity Central Index Key | 858470 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 413,170,529 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $14.20 |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $20,954 | $23,400 |
Restricted cash | 0 | 28,094 |
Accounts receivable, net | 239,009 | 222,476 |
Inventories | 14,026 | 17,468 |
Deferred income taxes | 0 | 81,855 |
Derivative instruments | 137,603 | 3,019 |
Other current assets | 1,855 | 2,587 |
Total current assets | 413,447 | 378,899 |
Properties and equipment, net (Successful efforts method) | 4,925,711 | 4,546,227 |
Equity method investments | 68,029 | 26,892 |
Other assets | 30,529 | 29,062 |
TOTAL ASSETS | 5,437,716 | 4,981,080 |
Current liabilities | ||
Accounts payable | 400,076 | 288,801 |
Accrued liabilities | 63,669 | 73,601 |
Income taxes payable | 0 | 31,591 |
Deferred income taxes | 35,273 | 0 |
Derivative instruments | 0 | 13,912 |
Total current liabilities | 499,018 | 407,905 |
Postretirement benefits | 35,827 | 33,554 |
Long-term debt | 1,752,000 | 1,147,000 |
Deferred income taxes | 843,876 | 1,067,912 |
Asset retirement obligations | 124,655 | 73,853 |
Other liabilities | 39,607 | 46,254 |
Total liabilities | 3,294,983 | 2,776,478 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock: Authorized -- 960,000,000 and 480,000,000 shares of $0.10 par value in 2014 and 2013, respectively Issued--422,915,258 and 422,014,681 shares in 2014 and 2013, respectively | 42,292 | 42,201 |
Additional paid-in capital | 710,432 | 710,940 |
Retained earnings | 1,698,995 | 1,627,805 |
Accumulated other comprehensive income (loss) | -2,151 | -8,361 |
Less treasury stock, at cost: 9,892,680 and 5,618,166 shares in 2014 and 2013, respectively | -306,835 | -167,983 |
Total stockholders' equity | 2,142,733 | 2,204,602 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,437,716 | $4,981,080 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common stock, Authorized shares | 960,000,000 | 480,000,000 |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, Issued shares | 422,915,258 | 422,014,681 |
Treasury stock, shares | 9,892,680 | 5,618,166 |
CONSOLIDATED_STATEMENT_OF_OPER
CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING REVENUES | |||
Natural gas | $1,590,625 | $1,405,262 | $934,134 |
Crude oil and condensate | 313,889 | 291,418 | 227,933 |
Gain (loss) on derivative instruments | 219,319 | 0 | -494 |
Brokered natural gas | 34,416 | 36,450 | 34,005 |
Other | 14,762 | 13,148 | 8,968 |
TOTAL OPERATING REVENUES | 2,173,011 | 1,746,278 | 1,204,546 |
OPERATING EXPENSES | |||
Direct operations | 145,529 | 140,856 | 118,243 |
Transportation and gathering | 349,321 | 229,489 | 143,309 |
Brokered natural gas cost | 30,030 | 29,936 | 28,502 |
Taxes other than income | 47,012 | 43,045 | 48,874 |
Exploration | 28,746 | 18,165 | 37,476 |
Depreciation, depletion and amortization | 632,760 | 651,052 | 451,405 |
Impairment of oil and gas properties | 771,037 | 0 | 0 |
General and administrative | 82,590 | 104,606 | 121,239 |
TOTAL OPERATING EXPENSES | 2,087,025 | 1,217,149 | 949,048 |
Earnings (loss) on equity method investments | 3,080 | 1,102 | 53 |
Gain (loss) on sale of assets | 17,120 | 21,351 | 50,635 |
INCOME FROM OPERATIONS | 106,186 | 551,582 | 306,186 |
Interest expense | 73,785 | 66,044 | 68,346 |
Income before income taxes | 32,401 | 485,538 | 237,840 |
Income tax (benefit) expense | -72,067 | 205,765 | 106,110 |
NET INCOME | $104,468 | $279,773 | $131,730 |
Earnings per share | |||
Basic (in dollars per share) | $0.25 | $0.67 | $0.31 |
Diluted (in dollars per share) | $0.25 | $0.66 | $0.31 |
Weighted-average common shares outstanding | |||
Basic (in shares) | 415,840 | 420,188 | 419,075 |
Diluted (in shares) | 417,601 | 422,375 | 421,987 |
Dividends per common share (in dollars per share) | $0.08 | $0.06 | $0.04 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $104,468 | $279,773 | $131,730 | |||
Other comprehensive income (loss), net of taxes: | ||||||
Reclassification adjustment for settled cash flow hedge contracts | 86,726 | [1] | -34,548 | [1] | -144,456 | [1] |
Changes in fair value of cash flow hedge contracts | -80,175 | [2] | -2,720 | [2] | 53,815 | [2] |
Pension and postretirement benefits: | ||||||
Net gain (loss) | -325 | [3] | 4,641 | [3] | 1,258 | [3] |
Amortization of prior service cost | 0 | [4] | 0 | [4] | 134 | [4] |
Amortization of (gain) net loss | -16 | [5] | 386 | [5] | 8,582 | [5] |
Total other comprehensive income (loss) | 6,210 | -32,241 | -80,667 | |||
Comprehensive income (loss) | $110,678 | $247,532 | $51,063 | |||
[1] | Net of income taxes of $(57,477), $22,454 and $91,870 for the year ended DecemberB 31, 2014, 2013 and 2012, respectively. | |||||
[2] | Net of income taxes of $53,135, $1,803 and $(34,890) for the year ended DecemberB 31, 2014, 2013 and 2012, respectively. | |||||
[3] | Net of income taxes of $48, $(2,977)B and $(815) for the year ended DecemberB 31, 2014, 2013 and 2012, respectively. | |||||
[4] | Net of income taxes of $(87)B for the year ended DecemberB 31, 2012. | |||||
[5] | Net of income taxes of $10, $(255) and $(5,324) for the year ended DecemberB 31, 2014, 2013 and 2012, respectively. |
CONSOLIDATED_STATEMENT_OF_COMP1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Reclassification adjustment for settled hedge contracts, income taxes | ($57,477) | $22,454 | $91,870 |
Changes in fair value of hedge contracts, income taxes | 53,135 | 1,803 | -34,890 |
Pension and postretirement benefits: | |||
Net gain / (loss), income taxes | 48 | -2,977 | -815 |
Amortization of prior service cost, income taxes | -87 | ||
Amortization of net loss, income taxes | $10 | ($255) | ($5,324) |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $104,468 | $279,773 | $131,730 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation, depletion and amortization | 632,760 | 651,052 | 451,405 |
Impairment of oil and gas properties | 771,037 | 0 | 0 |
Deferred income tax (benefit) expense | -112,567 | 138,380 | 80,929 |
(Gain) loss on sale of assets | -17,120 | -21,351 | -50,635 |
Exploration expense | 7,907 | 808 | 14,000 |
Unrealized (gain) loss on derivative instruments | -137,603 | 0 | 494 |
Amortization of debt issuance costs | 4,754 | 3,693 | 5,265 |
Stock-based compensation, pension and other | 18,349 | 45,863 | 46,872 |
Changes in assets and liabilities: | |||
Accounts receivable, net | -11,689 | -49,398 | -58,037 |
Income taxes | -34,282 | 29,002 | 3,055 |
Inventories | 3,441 | -3,033 | 7,104 |
Other current assets | 733 | -428 | -1,198 |
Accounts payable and accrued liabilities | 2,883 | -22,908 | 18,843 |
Other assets and liabilities | 1,989 | -8,014 | 2,266 |
Stock-based compensation tax benefit | 1,375 | -18,913 | 0 |
Net cash provided by operating activities | 1,236,435 | 1,024,526 | 652,093 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | -1,479,632 | -1,194,739 | -927,977 |
Acquisitions | -214,737 | 0 | 0 |
Proceeds from sale of assets | 39,491 | 323,501 | 169,326 |
Restricted cash | 28,094 | -28,094 | 0 |
Investment in equity method investments | -38,056 | -18,875 | -6,863 |
Net cash used in investing activities | -1,664,840 | -918,207 | -765,514 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Borrowings from debt | 2,032,000 | 955,000 | 400,000 |
Repayments of debt | -1,427,000 | -895,000 | -263,000 |
Treasury stock repurchases | -138,852 | -164,634 | 0 |
Dividends paid | -33,278 | -25,232 | -16,757 |
Stock-based compensation tax benefit | -1,375 | 18,913 | 0 |
Capitalized debt issuance costs | -5,626 | -2,750 | -5,005 |
Other | 90 | 48 | -992 |
Net cash provided by (used in) financing activities | 425,959 | -113,655 | 114,246 |
Net (decrease) increase in cash and cash equivalents | -2,446 | -7,336 | 825 |
Cash and cash equivalents, beginning of period | 23,400 | 30,736 | 29,911 |
Cash and cash equivalents, end of period | $20,954 | $23,400 | $30,736 |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Treasury Stock | Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at Dec. 31, 2011 | $2,104,768,000 | $41,804,000 | ($3,349,000) | $703,475,000 | $104,547,000 | $1,258,291,000 |
Balance (in shares) at Dec. 31, 2011 | 418,039,000 | 808,000 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 131,730,000 | 131,730,000 | ||||
Exercise of stock appreciation rights | -6,708,000 | 44,000 | -6,752,000 | |||
Exercise of stock options and stock appreciation rights (in shares) | 438,000 | |||||
Stock amortization and vesting | -919,000 | 238,000 | -1,157,000 | |||
Stock amortization and vesting (in shares) | 2,384,000 | |||||
Purchase of treasury stock | 0 | |||||
Purchase of treasury stock (in shares) | 0 | |||||
Cash dividends at $0.08, $0.06 and $0.04 per share for the year ended December 31, 2014, 2013 and 2012, respectively | -16,757,000 | -16,757,000 | ||||
Other comprehensive income (loss) | -80,667,000 | -80,667,000 | ||||
Balance at Dec. 31, 2012 | 2,131,447,000 | 42,086,000 | -3,349,000 | 695,566,000 | 23,880,000 | 1,373,264,000 |
Balance (in shares) at Dec. 31, 2012 | 420,861,000 | 808,000 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 279,773,000 | 279,773,000 | ||||
Exercise of stock appreciation rights | -13,226,000 | 38,000 | -13,264,000 | |||
Exercise of stock options and stock appreciation rights (in shares) | 382,000 | |||||
Stock amortization and vesting | 9,802,000 | 77,000 | 9,725,000 | |||
Stock amortization and vesting (in shares) | 772,000 | |||||
Tax benefit of stock-based compensation | 18,913,000 | 18,913,000 | ||||
Purchase of treasury stock | -164,634,000 | -164,634,000 | ||||
Purchase of treasury stock (in shares) | 4,800,000 | 4,810,000 | ||||
Cash dividends at $0.08, $0.06 and $0.04 per share for the year ended December 31, 2014, 2013 and 2012, respectively | -25,232,000 | -25,232,000 | ||||
Other comprehensive income (loss) | -32,241,000 | -32,241,000 | ||||
Balance at Dec. 31, 2013 | 2,204,602,000 | 42,201,000 | -167,983,000 | 710,940,000 | -8,361,000 | 1,627,805,000 |
Balance (in shares) at Dec. 31, 2013 | 422,015,000 | 5,618,000 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 104,468,000 | 104,468,000 | ||||
Stock amortization and vesting | 958,000 | 91,000 | 867,000 | |||
Stock amortization and vesting (in shares) | 900,000 | |||||
Tax benefit of stock-based compensation | -1,375,000 | -1,375,000 | ||||
Purchase of treasury stock | -138,852,000 | -138,852,000 | ||||
Purchase of treasury stock (in shares) | 4,300,000 | 4,275,000 | ||||
Cash dividends at $0.08, $0.06 and $0.04 per share for the year ended December 31, 2014, 2013 and 2012, respectively | -33,278,000 | -33,278,000 | ||||
Other comprehensive income (loss) | 6,210,000 | 6,210,000 | ||||
Balance at Dec. 31, 2014 | $2,142,733,000 | $42,292,000 | ($306,835,000) | $710,432,000 | ($2,151,000) | $1,698,995,000 |
Balance (in shares) at Dec. 31, 2014 | 422,915,000 | 9,893,000 |
CONSOLIDATED_STATEMENT_OF_STOC1
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, per share (in dollars per share) | $0.08 | $0.06 | $0.04 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |
Basis of Presentation and Nature of Operations | ||
Cabot Oil & Gas Corporation and its subsidiaries (the Company) are engaged in the development, exploitation, exploration, production and marketing of natural gas, oil and, to a lesser extent, NGLs exclusively within the continental United States. The Company also transports, stores, gathers and purchases natural gas for resale. The Company's exploration and development activities are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. | ||
The Company operates in one segment, natural gas and oil development, exploitation and exploration. The Company's oil and gas properties are managed as a whole rather than through discrete operating segments or business units. Operational information is tracked by geographic area; however, financial performance is assessed as a single enterprise and not on a geographic basis. Allocation of resources is made on a project basis across the Company's entire portfolio without regard to geographic areas. | ||
The consolidated financial statements include the accounts of the Company and its subsidiaries after eliminating all significant intercompany balances and transactions. Certain reclassifications have been made to prior year statements to conform with current year presentation. These reclassifications have no impact on previously reported net income. | ||
Significant Acccounting 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, 2014 and in two financial institutions at December 31, 2013. The Company periodically assesses the financial condition of its financial institutions and considers any possible credit risk to be minimal. | ||
Allowance for Doubtful Accounts | ||
The Company records an allowance for doubtful accounts for receivables that the Company determines to be uncollectible based on the specific identification method. | ||
Inventories | ||
Inventories are comprised of natural gas in storage, tubular goods and well equipment and pipeline imbalances. Natural gas in storage and tubular goods and well equipment balances are carried at the lower of average cost or market. | ||
Natural gas gathering and pipeline operations normally include imbalance arrangements with the pipeline. The volumes of natural gas due to or from the Company under imbalance arrangements are recorded at actual selling or purchase prices, as the case may be, and are adjusted monthly to market prices. | ||
Equity Method Investments | ||
The Company accounts for its investments in entities over which the Company has significant influence, but not control, using the equity method of accounting. Under the equity method of accounting, the Company increases its investment for contributions made and records its proportionate share of net earnings, declared dividends and partnership distributions based on the most recently available financial statements of the investee. The Company also evaluates its equity method investments for potential impairment whenever events or changes in circumstances indicate that there is an other-than-temporary decline in the value of the investment. | ||
Properties and Equipment | ||
The Company uses the successful efforts method of accounting for oil and gas producing activities. Under this method, acquisition costs for proved and unproved properties are capitalized when incurred. Exploration costs, including geological and geophysical costs, the costs of carrying and retaining unproved properties and exploratory dry hole drilling costs, are expensed. Development costs, including the costs to drill and equip development wells and successful exploratory drilling costs to locate proved reserves are capitalized. | ||
Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves. The determination is based on a process which relies on interpretations of available geologic, geophysical, and engineering data. If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well. If a well is determined to be unsuccessful, the capitalized drilling costs will be charged to exploration expense in the period the determination is made. If an exploratory well requires a major capital expenditure before production can begin, the cost of drilling the exploratory well will continue to be carried as an asset pending determination of whether reserves have been found only as long as: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well if the required capital expenditure is made and (ii) drilling of an additional exploratory well is under way or firmly planned for the near future. If drilling in the area is not under way or firmly planned, or if the well has not found a commercially producible quantity of reserves, the exploratory well is assumed to be impaired and its costs are charged to exploration expense. | ||
Development costs of proved oil and gas properties, including estimated dismantlement, restoration and abandonment costs and acquisition costs, are depreciated and depleted on a field basis by the units-of-production method using proved developed and proved reserves, respectively. Properties related to gathering and pipeline systems and equipment are depreciated using the straight-line method based on estimated useful lives ranging from 10 to 25 years. Generally pipeline and transmission systems are depreciated over 12 to 25 years, gathering and compression equipment is depreciated over 10 years and storage equipment and facilities are depreciated over 10 to 16 years. Buildings are depreciated on a straight-line basis over 25 to 40 years. Certain other assets are depreciated on a straight-line basis over 3 to 10 years. | ||
Costs of retired, sold or abandoned properties that make up a part of an amortization base (partial field) are charged to accumulated depreciation, depletion and amortization if the units-of-production rate is not significantly affected. A gain or loss, if any, is recognized only when a group of proved properties (entire field) that make up the amortization base has been retired, abandoned or sold. | ||
The Company evaluates its proved oil and gas properties for impairment whenever events or changes in circumstances indicate an asset's carrying amount may not be recoverable. The Company compares expected undiscounted future cash flows to the net book value of the asset. If the future undiscounted expected cash flows, based on estimates of future natural gas and crude oil prices, operating costs and anticipated production from proved reserves and risk-adjusted probable and possible reserves, are lower than the net book value of the asset, the capitalized cost is reduced to fair value. Commodity pricing is estimated by using a combination of assumptions management uses in its budgeting and forecasting process as well as historical and current prices adjusted for geographical location and quality differentials, as well as other factors that management believes will impact realizable prices. Fair value is calculated by discounting the future cash flows. The discount factor used is based on rates utilized by market participants that are commensurate with the risks inherent in the development and production of the underlying natural gas and oil. | ||
Unproved oil and gas properties are assessed periodically for impairment on an aggregate basis through periodic updates to the Company's undeveloped acreage amortization based on past drilling and exploration experience, the Company's expectation of converting leases to held by production and average property lives. Average property lives are determined on a geographical basis and based on the estimated life of unproved property leasehold rights. During 2014, 2013 and 2012, amortization associated with the Company's unproved properties was $17.4 million, $53.6 million and $18.1 million, respectively, and is included in depreciation, depletion, and amortization in the Consolidated Statement of Operations. | ||
Asset Retirement Obligations | ||
The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset. The asset retirement costs are depreciated using the units-of-production method. The majority of the asset retirement obligations recorded by the Company relate to the plugging and abandonment of oil and gas wells. However, liabilities are also recorded for meter stations, pipelines, processing plants and compressors. At December 31, 2014, there were no assets legally restricted for purposes of settling asset retirement obligations. | ||
Additional retirement obligations increase the liability associated with new oil and gas wells and other facilities as these obligations are incurred. Accretion expense is included in depreciation, depletion and amortization expense in the Consolidated Statement of Operations. | ||
Derivative and Hedging Activities | ||
The Company enters into derivative contracts, primarily options and swaps, to manage its exposure to price fluctuations on natural gas and oil production. All derivatives are recognized on the balance sheet and are measured at fair value. At the end of each quarterly period, these derivatives are marked-to-market. If the derivative does not qualify or is not designated as a cash flow hedge, changes in the fair value of the derivative are recognized currently in income. If the derivative qualifies and is designated as a cash flow hedge, changes in the fair value of the derivative are deferred in accumulated other comprehensive income to the extent the hedge is effective. | ||
The hedging relationship between the hedging instruments and hedged items must be highly effective in achieving the offset of changes in cash flows attributable to the hedged risk, both at the inception of the hedge and on an ongoing basis. The Company measures hedge effectiveness on a quarterly basis. Hedge accounting is discontinued prospectively if and when a hedging instrument becomes ineffective. Gains and losses deferred in accumulated other comprehensive income related to cash flow hedges that become ineffective remain unchanged until the related production occurs. If the Company determines that it is probable that a hedged forecasted transaction will not occur, deferred gains or losses on the related hedging instrument are recognized in income immediately. | ||
Gains and losses on cash flow hedges are included in natural gas and crude oil and condensate revenues. Gains and losses on derivatives which represent hedge ineffectiveness and gains and losses on derivatives not designated or does not qualify for hedge accounting are included in operating revenues in gain (loss) on derivative instruments. The resulting cash flows are reported as cash flows from operating activities. | ||
Through March 31, 2014, the Company elected to designate its commodity derivatives as cash flow hedges for accounting purposes. Effective April 1, 2014, the Company elected to discontinue hedge accounting for its commodity derivatives on a prospective basis. | ||
Fair Value of Assets and Liabilities | ||
The Company follows the authoritative accounting guidance for measuring fair value of assets and liabilities in financial statements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. The Company is able to classify fair value balances based on the observability of these inputs. The authoritative guidance for fair value measurements establishes three levels of the fair value hierarchy, defined as follows: | ||
• | Level 1: Unadjusted, quoted prices for identical assets or liabilities in active markets. | |
• | Level 2: Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly for substantially the full term of the asset or liability. | |
• | Level 3: Significant, unobservable inputs for use when little or no market data exists, requiring a significant degree of judgment. | |
The hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. Depending on the particular asset or liability, input availability can vary depending on factors such as product type, longevity of a product in the market and other particular transaction conditions. In some cases, certain inputs used to measure fair value may be categorized into different levels of the fair value hierarchy. For disclosure purposes under the accounting guidance, the lowest level that contains significant inputs used in the valuation should be chosen. | ||
Revenue Recognition | ||
Natural gas and oil sales result from interests in oil and gas properties owned by the Company. Sales of natural gas and oil are recognized when the product is delivered and title transfers to the purchaser. Payment is generally received one to three months after the sale has occurred. | ||
Producer Gas Imbalances. The Company applies the sales method of accounting for natural gas revenue. Under this method, revenues are recognized based on the actual volume of natural gas sold to purchasers. Natural gas production operations may include joint owners who take more or less than the production volumes entitled to them on certain properties. Production volume is monitored to minimize these natural gas imbalances. 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. | ||
Brokered Natural Gas. Revenues and expenses related to brokering natural gas are reported gross as part of operating revenues and operating expenses in accordance with applicable accounting standards. The Company buys and sells natural gas utilizing separate purchase and sale transactions, typically with separate counterparties, whereby the Company and/or the counterparty takes title to the natural gas purchased or sold. | ||
Income Taxes | ||
The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the estimated future tax consequences attributable to the differences between the financial carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. | ||
The Company is required to make judgments, including estimating reserves for potential adverse outcomes regarding tax positions that the Company has taken. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return. The tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination by taxing authorities based on technical merits of the position. The amount of the tax benefit recognized is the largest amount of the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The effective tax rate and the tax basis of assets and liabilities reflect management's estimates of the ultimate outcome of various tax uncertainties. | ||
The Company recognizes accrued interest related to uncertain tax positions in interest expense and accrued penalties related to such positions in general and administrative expense in the Consolidated Statement of Operations. | ||
Stock-Based Compensation | ||
The Company accounts for stock-based compensation under the fair value method of accounting. Under the fair value method, compensation cost is measured at the grant date for equity-classified awards and remeasured each reporting period for liability-classified awards based on the fair value of an award and is recognized over the service period, which is generally the vesting period. To calculate fair value, the Company uses either a Monte Carlo or Black-Scholes valuation model depending on the specific provisions of the award. Stock-based compensation cost for all types of awards is included in general and administrative expense in the Consolidated Statement of Operations. | ||
The tax benefit for stock-based compensation is included as both a cash inflow from financing activities and a cash outflow from operating activities in the Consolidated Statement of Cash Flows. The Company recognizes a tax benefit only to the extent it reduces the Company's income taxes payable. | ||
Environmental Matters | ||
Environmental expenditures are expensed or capitalized, as appropriate, depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations, and that do not have future economic benefit are expensed. Liabilities related to future costs are recorded on an undiscounted basis when environmental assessments and/or remediation activities are probable and the costs can be reasonably estimated. Any insurance recoveries are recorded as assets when received. | ||
Credit and Concentration Risk | ||
Substantially all of the Company's accounts receivable result from the sale of natural gas and oil and joint interest billings to third parties in the oil and gas industry. This concentration of purchasers and joint interest owners may impact the Company's overall credit risk, either positively or negatively, in that these entities may be similarly affected by changes in economic or other conditions. The Company does not anticipate any material impact on its financial results due to non-performance by the third parties. | ||
During the years ended December 31, 2014, 2013 and 2012, two customers accounted for approximately 14% and 10%, four customers accounted for approximately 21%, 16%, 14% and 11% and three customers accounted for approximately 18%, 12% and 10% , respectively, of the Company's total sales. The Company does not believe that the loss of any of these customers would have a material adverse effect because alternative customers are readily available. | ||
Use of Estimates | ||
In preparing financial statements, the Company follows accounting principles generally accepted in the United States. These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The most significant estimates pertain to proved natural gas and oil reserves and related cash flow estimates which are used to compute depreciation, depletion and amortization and impairments of proved oil and gas properties. Other significant estimates include natural gas and oil revenues and expenses, fair value of derivative instruments, estimates of expenses related to legal, environmental and other contingencies, asset retirement obligations, postretirement obligations, stock-based compensation and deferred income taxes. Actual results could differ from those estimates. | ||
Recent Accounting Pronouncements | ||
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The guidance is effective for interim and annual periods beginning on or after December 15, 2014. The Company does not expect the adoption of this guidance to have a material impact on its financial position, results of operations or cash flows. | ||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective beginning in fiscal year 2017 and can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the effect that adopting this guidance will have on its financial position, results of operations or cash flows. | ||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern, as a new Sub-topic, Accounting Standards Codification Sub-topic 205.40. The new going concern standard codifies in generally accepted accounting principles (GAAP) management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This ASU is effective for interim and annual periods beginning on or after December 15, 2016 and early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its financial position or results of operations. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures |
Acquisitions | |
In December 2014, the Company completed the acquisition of certain proved and unproved oil and gas properties in the Eagle Ford Shale in south Texas for approximately $30.5 million, subject to post-closing adjustments. Total net cash consideration paid by the Company as of the closing date was approximately $29.6 million, which reflects the impact of customary purchase price adjustments and acquisition costs. | |
In October 2014, the Company completed the acquisition of certain proved and unproved oil and gas properties in the Eagle Ford Shale in south Texas. Total net cash consideration paid by the Company was approximately $185.2 million, which reflects the purchase price of $210.0 million, adjusted by approximately $17.4 million for consents that the seller was unable to obtain for certain leaseholds prior to closing and approximately $8.0 million for the impact of customary purchase price adjustments and acquisition costs. In addition, the Company also assumed a liability of approximately $1.2 million related to asset retirement obligations of the wells acquired. | |
The Company accounted for these transactions as an asset purchase, whereby the identifiable assets acquired were recorded at cost, with the respective assigned carrying amount based on the relative fair value of the unproved and proved properties at the acquisition date. The fair value measurement of assets acquired was based on inputs that are not observable in the market and therefore represent Level 3 inputs. The fair value of oil and gas properties were measured using discounted future cash flows. The discount factor used was based on rates utilized by market participants that are commensurate with the risks inherent in the development and production of the underlying natural gas and oil. Significant inputs to the valuation of oil and gas properties include (i) reserves, including risk adjustments for probable and possible reserves; (ii) production rates based on the Company's experience with similar properties in which it operates; (iii) estimated future operating and development costs; (iv) future commodity prices; (v) future cash flows; and (vi) a market-based weighted average cost of capital rate of 10%. | |
Divestitures | |
The Company recognized an aggregate net gain on sale of assets of $17.1 million, $21.4 million and $50.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
In October 2014, the Company completed the divestiture of certain proved and unproved oil and gas properties in east | |
Texas to a third party for approximately $44.3 million and recognized a $19.9 million gain on sale of assets. | |
In December 2013, the Company sold certain proved and unproved oil and gas properties located in the Oklahoma and Texas panhandles to Chaparral Energy, L.L.C. for approximately $160.0 million and recognized a $19.4 million gain on sale of assets. The Company also sold certain proved and unproved oil and gas properties located in Oklahoma, Texas and Kansas to a third party for approximately $123.4 million and recognized a $17.5 million loss on sale of assets. | |
In 2013, the Company sold various other proved and unproved oil and gas properties for approximately $44.3 million and recognized an aggregate net gain of $19.5 million. | |
In December 2012, the Company sold certain proved oil and gas properties located in south Texas to a private company for $29.9 million, and recognized an $18.2 million loss on sale of assets. | |
In June 2012, the Company sold a 35% non-operated working interest associated with certain of its Pearsall Shale undeveloped leaseholds in south Texas to a wholly owned subsidiary of Osaka Gas Co., Ltd. (Osaka) for total consideration of approximately $250.0 million. The Company received $125.0 million in cash proceeds and Osaka agreed to fund 85% of the Company's share of future drilling and completion costs associated with these leaseholds until it has paid approximately $125.0 million in accordance with a joint development agreement entered into at closing. The Company recognized a $67.0 million gain on sale of assets associated with this sale. The drilling and completion carry was fully satisfied in 2013. | |
In 2012, the Company sold various other unproved oil and gas properties and other assets for approximately $14.4 million and recognized an aggregate net gain of $1.8 million. |
Properties_and_Equipment
Properties and Equipment | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Properties and Equipment | Properties and Equipment | |||||||||||
Properties and equipment are comprised of the following: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Proved oil and gas properties | $ | 7,984,979 | $ | 6,362,570 | ||||||||
Unproved oil and gas properties | 492,208 | 375,428 | ||||||||||
Gathering and pipeline systems | 241,272 | 239,958 | ||||||||||
Land, building and other equipment | 109,758 | 94,243 | ||||||||||
8,828,217 | 7,072,199 | |||||||||||
Accumulated depreciation, depletion and amortization | (3,902,506 | ) | (2,525,972 | ) | ||||||||
$ | 4,925,711 | $ | 4,546,227 | |||||||||
Impairment | ||||||||||||
In December 2014, the Company recorded a $771.0 million impairment of oil and gas properties in certain non-core fields, primarily in east Texas. The impairment of these fields was due to a significant decline in commodity prices in late 2014 and management's decision not to pursue any further activity in these non-core areas in the current price environment. These fields were reduced to fair value of approximately $86.5 million using discounted future cash flows. | ||||||||||||
The fair value of the impaired fields was based on significant inputs that were not observable in the market and are considered to be Level 3 inputs as defined by ASC 820. Refer to Note 1 for a description of fair value hierarchy. Key assumptions included (i) reserves, including risk adjustments for probable and possible reserves; (ii) production rates based on the Company's experience with similar properties in which it operates; (iii) estimated future operating and development costs; (iv) future commodity prices; (v) future cash flows; and (vi) a market-based weighted average cost of capital rate of 10%. | ||||||||||||
Capitalized Exploratory Well Costs | ||||||||||||
The following table reflects the net changes in capitalized exploratory well costs: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | — | $ | 10,390 | $ | 5,328 | ||||||
Additions to capitalized exploratory well costs pending the determination of proved reserves | 10,557 | — | 10,390 | |||||||||
Reclassifications to wells, facilities, and equipment based on the determination of proved reserves | — | (10,198 | ) | — | ||||||||
Capitalized exploratory well costs charged to expense | — | (192 | ) | (5,328 | ) | |||||||
Balance at end of period | $ | 10,557 | $ | — | $ | 10,390 | ||||||
The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Capitalized exploratory well costs that have been capitalized for a period of one year or less | $ | 10,557 | $ | — | $ | 10,390 | ||||||
Capitalized exploratory well costs that have been capitalized for a period greater than one year | — | — | — | |||||||||
$ | 10,557 | $ | — | $ | 10,390 | |||||||
Equity_Method_Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments |
Constitution Pipeline Company, LLC | |
In April 2012, the Company acquired a 25% equity interest in Constitution Pipeline Company, LLC (Constitution), which thereby became an unconsolidated investee. Constitution 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. The expected in-service date for the new pipeline is 2016. Accordingly, the Company expects to contribute approximately $139.7 million over the next two years. | |
During 2014, 2013 and 2012, the Company made contributions of $34.2 million, $18.9 million and $6.9 million, respectively, to fund costs associated with the project. The Company's net book value in this equity investment was $64.3 million and $26.9 million as of December 31, 2014 and 2013, respectively, and is included in equity method investments in the Consolidated Balance Sheet. There were no material earnings or losses associated with Constitution during 2014, 2013 or 2012. | |
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 of approximately 61% and 39%, respectively. Under the terms of the Meade LLC agreement, the Company agreed to invest its proportionate share of Meade’s anticipated costs associated with the new pipeline. The Company expects to contribute approximately $135.3 million over the next three years. The expected in-service date for the new pipeline is scheduled for the second half of 2017. | |
During 2014, the Company made contributions of approximately $3.9 million to Meade. The Company’s net book value in this equity investment was $3.8 million as of December 31, 2014 and is included in equity method investments in the Consolidated Balance Sheet. There were no material earnings or losses associated with Meade during 2014. |
Debt_and_Credit_Agreements
Debt and Credit Agreements | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
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) | 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% fixed rate notes | 67,000 | 67,000 | |||||||||||||
5.58% weighted-average fixed rate notes | 175,000 | 175,000 | |||||||||||||
3.65% weighted-average fixed rate notes | 925,000 | — | |||||||||||||
Revolving credit facility | 140,000 | 460,000 | |||||||||||||
$ | 1,752,000 | $ | 1,147,000 | ||||||||||||
The Company has debt maturities of $20.0 million due in 2016 and $312.0 million due in 2018. In addition, the revolving credit facility matures in 2017. No other tranches of debt are due within the next five years. | |||||||||||||||
At December 31, 2014, the Company was in compliance with all restrictive financial covenants in both the revolving credit facility and fixed rate notes. | |||||||||||||||
Fixed Rate Notes | |||||||||||||||
The Company has various issuances of fixed rate notes. Under the terms of the various fixed rate note purchase 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. There are also various other restrictive covenants customarily found in such debt instruments. Those covenants include a minimum asset coverage ratio (present value of proved reserves plus adjusted cash to indebtedness and other liabilities) 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. The notes are also subject to customary events of default. With the exception of the 7.33% weighted-average fixed rate notes, the Company is required to offer to prepay all other fixed rate notes upon specified change in control events accompanied by a ratings decline below investment grade. | |||||||||||||||
Interest on each of the fixed rate notes is payable semi-annually. | |||||||||||||||
7.33% Weighted-Average Fixed Rate Notes | |||||||||||||||
In July 2001, the Company issued $170 million of senior unsecured fixed rate notes to a group of seven institutional investors in a private placement. The notes have bullet maturities and were issued in three separate tranches as follows: | |||||||||||||||
Principal | Term | Maturity | Coupon | ||||||||||||
Date | |||||||||||||||
Tranche 1 | $ | 75,000,000 | 10 years | Jul-11 | 7.26 | % | |||||||||
Tranche 2 | $ | 75,000,000 | 12 years | Jul-13 | 7.36 | % | |||||||||
Tranche 3 | $ | 20,000,000 | 15 years | Jul-16 | 7.46 | % | |||||||||
As of December 31, 2014, the Company has repaid $150 million of aggregate maturities associated with the 7.33% weighted-average fixed rate notes. | |||||||||||||||
6.51% Weighted-Average Fixed Rate Notes | |||||||||||||||
In July 2008, the Company issued $425 million of senior unsecured fixed rate 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 | Coupon | ||||||||||||
Date | |||||||||||||||
Tranche 1 | $ | 245,000,000 | 10 years | Jul-18 | 6.44 | % | |||||||||
Tranche 2 | $ | 100,000,000 | 12 years | Jul-20 | 6.54 | % | |||||||||
Tranche 3 | $ | 80,000,000 | 15 years | Jul-23 | 6.69 | % | |||||||||
9.78% Fixed Rate Notes | |||||||||||||||
In December 2008, the Company issued $67 million aggregate principal amount of 10 year 9.78% unsecured fixed rate senior notes to a group of four institutional investors in a private placement. | |||||||||||||||
5.58% Weighted-Average Fixed Rate Notes | |||||||||||||||
In December 2010, the Company issued $175 million of senior unsecured fixed rate 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 | Coupon | ||||||||||||
Date | |||||||||||||||
Tranche 1 | $ | 88,000,000 | 10 years | Jan-21 | 5.42 | % | |||||||||
Tranche 2 | $ | 25,000,000 | 12 years | Jan-23 | 5.59 | % | |||||||||
Tranche 3 | $ | 62,000,000 | 15 years | Jan-26 | 5.8 | % | |||||||||
3.65% Weighted‑Average Fixed Rate Notes | |||||||||||||||
In September 2014, the Company issued $925 million of senior unsecured fixed rate 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 | Coupon | ||||||||||||
Date | |||||||||||||||
Tranche 1 | $ | 100,000,000 | 7 years | Sep-21 | 3.24 | % | |||||||||
Tranche 2 | $ | 575,000,000 | 10 years | Sep-24 | 3.67 | % | |||||||||
Tranche 3 | $ | 250,000,000 | 12 years | Sep-26 | 3.77 | % | |||||||||
In conjunction with the issuance of the 3.65% weighted‑average fixed rate notes in September 2014, the Company incurred approximately $5.6 million of debt issuance costs, which were capitalized and will be amortized over the term of the notes. The amortization of debt issuance costs is included in interest expense in the Consolidated Statement of Operations. | |||||||||||||||
Revolving Credit Agreement | |||||||||||||||
The Company's revolving credit facility matures in May 2017 and is unsecured. The available credit line is subject to adjustment from time to time on the basis of (1) the projected present value (as determined by the banks based on the Company's reserve reports and engineering reports) of estimated future net cash flows from certain proved oil and gas reserves and certain other assets of the Company (the "Borrowing Base") and (2) the outstanding principal balance of the Company's fixed rate notes. While the Company does not expect a reduction in the available credit line, in the event that it is adjusted below that level in connection with scheduled redetermination or due to a termination of hedge positions, the Company has a period of six months to reduce its outstanding debt in equal monthly installments to the adjusted credit line available. At December 31, 2014, the Company had a $1.4 billion credit line under the revolving credit facility. | |||||||||||||||
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 in connection with certain acquisitions or sales of oil and gas properties. 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 agreement. The commitments under the revolving credit facility remain unchanged at $1.4 billion. | |||||||||||||||
Interest rates under the revolving credit facility are based on Euro-Dollars (LIBOR) or Alternate Base Rate (ABR) indications, plus a margin. The associated margins increase if the total indebtedness under the revolving credit facility and the Company's fixed rate notes as a percentage of the Borrowing Base is greater than the percentages shown below: | |||||||||||||||
Debt Percentage | |||||||||||||||
<25% | 25% <50% | 50% <75% | 75% <90% | 90% | |||||||||||
Eurodollar loans | 1.5 | % | 1.75 | % | 2 | % | 2.25 | % | 2.5 | % | |||||
ABR loans | 0.5 | % | 0.75 | % | 1 | % | 1.25 | % | 1.5 | % | |||||
The revolving credit facility provides for a commitment fee on the unused available balance at annual rates ranging from 0.375% to 0.50%. | |||||||||||||||
The revolving credit facility also contains various customary covenants, which include the following (with all calculations based on definitions contained in the agreement): | |||||||||||||||
(a) | Maintenance of a minimum annual coverage ratio of consolidated cash flow to interest expense for the trailing four quarters of 2.8 to 1.0. | ||||||||||||||
(b) | Maintenance of an asset coverage ratio of the present value of proved reserves plus adjusted cash to indebtedness and other liabilities of 1.75 to 1.0. | ||||||||||||||
(c) | Maintenance of a minimum current ratio of 1.0 to 1.0. | ||||||||||||||
In addition, the revolving credit facility includes a customary condition to the Company's borrowings under the facility that a material adverse change has not occurred with respect to the Company. | |||||||||||||||
At December 31, 2014, the Company had $140.0 million of borrowings outstanding under its revolving credit facility and $1.3 billion available for future borrowings. The Company's weighted-average effective interest rates for the revolving credit facility during the years ended December 31, 2014, 2013 and 2012 were approximately 2.2%, 2.3% and 3.0%, respectively. As of December 31, 2014 and 2013, the weighted-average interest rate on the Company's revolving credit facility was approximately 2.4% and 2.0%, respectively. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities | ||||||||||||||||||||||
The Company periodically enters into commodity derivatives to manage 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 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. | |||||||||||||||||||||||
Through March 31, 2014, the Company elected to designate its commodity derivatives as cash flow hedges for accounting purposes. Effective April 1, 2014, the Company elected to discontinue hedge accounting for its commodity derivatives on a prospective basis. As a result of discontinuing hedge accounting, the unrealized loss included in accumulated other comprehensive income (loss) as of April 1, 2014 of $73.4 million ($44.2 million net of tax) was frozen and reclassified into natural gas and crude oil and condensate revenues in the Statement of Operations throughout 2014 as the underlying hedged transactions occurred. As of December 31, 2014, there are no gains or losses deferred in accumulated other comprehensive income (loss) associated with the Company’s commodity derivatives. | |||||||||||||||||||||||
As of December 31, 2014, the Company had the following outstanding commodity derivatives instruments: | |||||||||||||||||||||||
Collars | Swaps | ||||||||||||||||||||||
Floor | Ceiling | ||||||||||||||||||||||
Type of Contract | Volume | Contract Period | Range | Weighted- | Range | Weighted- | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Natural gas | 70.9 | Bcf | Jan. 2015 - Dec. 2015 | $3.86 - $3.91 | $ | 3.87 | $4.27 - $4.43 | $ | 4.35 | ||||||||||||||
Natural gas | 70.9 | Bcf | Jan. 2015 - Dec. 2015 | $ | 3.92 | ||||||||||||||||||
Natural gas | 5.2 | Bcf | Jan. 2015 - Mar. 2015 | $ | 4.62 | ||||||||||||||||||
Natural gas | 10.4 | Bcf | Apr. 2015 - Oct. 2015 | $ | 3.86 | ||||||||||||||||||
In the above table, natural gas prices are stated per Mcf. | |||||||||||||||||||||||
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 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Derivatives Designated as Hedges | |||||||||||||||||||||||
Commodity contracts | Derivative instruments (current assets) | $ | — | $ | 3,019 | $ | — | $ | — | ||||||||||||||
Commodity contracts | Derivative instruments (current liabilities) | — | — | — | 13,912 | ||||||||||||||||||
Derivatives Not Designated as Hedges | |||||||||||||||||||||||
Commodity contracts | Derivative instruments (current assets) | 137,603 | — | — | — | ||||||||||||||||||
$ | 137,603 | $ | 3,019 | $ | — | $ | 13,912 | ||||||||||||||||
Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||||
Gross amounts of recognized assets | $ | 137,603 | $ | 13,792 | |||||||||||||||||||
Gross amounts offset in the statement of financial position | — | (10,773 | ) | ||||||||||||||||||||
Net amounts of assets presented in the statement of financial position | 137,603 | 3,019 | |||||||||||||||||||||
Gross amounts of financial instruments not offset in the statement of financial position | 2,338 | 373 | |||||||||||||||||||||
Net amount | $ | 139,941 | $ | 3,392 | |||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||||
Gross amounts of recognized liabilities | $ | — | $ | 24,685 | |||||||||||||||||||
Gross amounts offset in the statement of financial position | — | (10,773 | ) | ||||||||||||||||||||
Net amounts of liabilities presented in the statement of financial position | — | 13,912 | |||||||||||||||||||||
Gross amounts of financial instruments not offset in the statement of financial position | — | — | |||||||||||||||||||||
Net amount | $ | — | $ | 13,912 | |||||||||||||||||||
Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
The amount of gain (loss) recognized in accumulated other comprehensive income (loss) on derivatives (effective portion) is as follows: | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Commodity contracts | $ | (133,310 | ) | $ | (4,523 | ) | $ | 88,705 | |||||||||||||||
The amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) is as follows: | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
(In thousands) | 2014(1) | 2013 | 2012 | ||||||||||||||||||||
Natural gas revenues | $ | (143,577 | ) | $ | 52,733 | $ | 225,108 | ||||||||||||||||
Crude oil and condensate revenues | (626 | ) | 4,269 | 11,218 | |||||||||||||||||||
$ | (144,203 | ) | $ | 57,002 | $ | 236,326 | |||||||||||||||||
(1) The Company ceased hedge accounting effective April 1, 2014. As a result, a loss of approximately $73.4 million related to amounts previously frozen in accumulated other comprehensive income (loss) were reclassified into income during 2014. | |||||||||||||||||||||||
Effect of Derivative Instruments on the Consolidated Statement of Operations | |||||||||||||||||||||||
The amount of gain (loss) recognized in the Consolidated Statement of Operations on derivative instruments is as follows: | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Derivatives Designated as Hedges | |||||||||||||||||||||||
Realized | |||||||||||||||||||||||
Natural gas | $ | (70,557 | ) | $ | 52,733 | $ | 225,108 | ||||||||||||||||
Crude oil and condensate | (218 | ) | 4,269 | 11,218 | |||||||||||||||||||
$ | (70,775 | ) | $ | 57,002 | $ | 236,326 | |||||||||||||||||
Derivatives Not Designated as Hedges | |||||||||||||||||||||||
Realized | |||||||||||||||||||||||
Natural gas(1) | $ | (73,020 | ) | $ | — | $ | — | ||||||||||||||||
Crude oil and condensate(1) | (408 | ) | — | — | |||||||||||||||||||
Gain (loss) on derivative instruments | 81,716 | — | — | ||||||||||||||||||||
Unrealized | |||||||||||||||||||||||
Gain (loss) on derivative instruments | 137,603 | — | (494 | ) | |||||||||||||||||||
$ | 145,891 | $ | — | $ | (494 | ) | |||||||||||||||||
$ | 75,116 | $ | 57,002 | $ | 235,832 | ||||||||||||||||||
(1) Relates entirely to the reclassification from accumulated other comprehensive income (loss) of previously frozen losses associated with derivatives that were de-designated as cash flow hedges on April 1, 2014. | |||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, respectively, there was no ineffectiveness recorded in the Company’s Consolidated Statement of Operations related to its derivative instruments designated as cash flow 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's counterparties are primarily commercial banks and financial service institutions that management believes present minimal credit risk and our derivative contracts are with multiple counterparties to minimize our 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. 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. | |||||||||||||||||||||||
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, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
Non-Financial Assets and Liabilities | ||||||||||||||||
The Company discloses or recognizes its non-financial assets and liabilities, such as impairments and acquisitions of oil and gas properties, at fair value on a nonrecurring basis. During the year ended December 31, 2014, the Company acquired certain oil and gas properties that were allocated based on the relative fair value of the proved and unproved properties and also recorded an impairment charge related to certain oil and gas properties. Refer to Note 2 for additional disclosures related to the non-recurring fair value measurements associated with these acquisitions and Note 3 for additional disclosures related to fair value associated with the impaired assets. As none of the Company’s other non-financial assets and liabilities were measured at fair value as of December 31, 2014, 2013 and 2012 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 obligations 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 | Balance as of | ||||||||||||
Active Markets for | Observable Inputs | Unobservable | December 31, | |||||||||||||
Identical Assets | (Level 2) | Inputs | 2014 | |||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
Assets | ||||||||||||||||
Deferred compensation plan | $ | 13,115 | $ | — | $ | — | $ | 13,115 | ||||||||
Derivative contracts | — | 51,645 | 85,958 | 137,603 | ||||||||||||
Total assets | $ | 13,115 | $ | 51,645 | $ | 85,958 | $ | 150,718 | ||||||||
Liabilities | ||||||||||||||||
Deferred compensation plan | $ | 28,932 | $ | — | $ | — | $ | 28,932 | ||||||||
Derivative contracts | — | — | — | — | ||||||||||||
Total liabilities | $ | 28,932 | $ | — | $ | — | $ | 28,932 | ||||||||
(In thousands) | Quoted Prices in | Significant Other | Significant | Balance as of | ||||||||||||
Active Markets for | Observable Inputs | Unobservable | December 31, | |||||||||||||
Identical Assets | (Level 2) | Inputs | 2013 | |||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
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 and liabilities classified as Level 3 in the fair value hierarchy: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||||||
Balance at beginning of period | $ | (3,910 | ) | $ | 41,159 | $ | 195,127 | |||||||||
Total gains (losses) (realized or unrealized): | ||||||||||||||||
Included in earnings | 35,067 | 52,733 | 224,614 | |||||||||||||
Included in other comprehensive income | 3,755 | (45,069 | ) | (157,478 | ) | |||||||||||
Settlements | 51,046 | (52,733 | ) | (221,489 | ) | |||||||||||
Transfers in and/or out of level 3 | — | — | 385 | |||||||||||||
Balance at end of period | $ | 85,958 | $ | (3,910 | ) | $ | 41,159 | |||||||||
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period | $ | 85,958 | $ | — | $ | — | ||||||||||
There were no transfers between Level 1 and Level 2 fair value measurements for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||
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 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. Based on the inputs used to fair value these financial 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 fixed rate notes and revolving credit facility to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The fair value of all fixed rate notes and the revolving credit facility is based on interest rates currently available to the Company. The Company's debt is valued using an income approach and classified as Level 3 in the fair value hierarchy. | ||||||||||||||||
The carrying amounts and fair values of debt are as follows: | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
(In thousands) | Carrying | Estimated | Carrying | Estimated | ||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
Debt | $ | 1,752,000 | $ | 1,850,867 | $ | 1,147,000 | $ | 1,224,273 | ||||||||
Asset_Retirement_Obligation
Asset Retirement Obligation | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ||||
Asset Retirement Obligation | Asset Retirement Obligations | |||
Activity related to the Company's asset retirement obligations is as follows: | ||||
(In thousands) | Year Ended | |||
December 31, 2014 | ||||
Balance at beginning of period | $ | 75,853 | ||
Liabilities incurred | 7,220 | |||
Liabilities settled and divested | (1,474 | ) | ||
Liabilities acquired | 1,206 | |||
Accretion expense | 5,110 | |||
Change in estimate | 38,740 | |||
Balance at end of period | $ | 126,655 | ||
The change in estimate during 2014 is attributable to an increase in cost of materials and services. The increase is primarily due to an increase in demand, more costly and rigorous plugging and abandonment techniques associated with the Company's wells in certain areas of its operations and the lack of availability of service providers in areas with minimal activity. | ||||
As of both December 31, 2014 and 2013, approximately $2.0 million is included in accrued liabilities in the Consolidated Balance Sheet, which represents the current portion of the Company’s asset retirement obligation. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Transportation and Gathering Agreements | ||||
The Company has entered into certain natural gas, oil and NGL transportation and gathering agreements with various pipeline carriers. Under certain of these agreements, the Company is obligated to transport minimum daily quantities, or pay for any deficiencies at a specified rate. 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. In most cases, the Company's production commitment to these pipelines is expected to exceed minimum daily quantities provided in the agreements. If the Company does not utilize the capacity, it can release it to others, thus reducing its potential liability. | ||||
As of December 31, 2014, the Company's future minimum obligations under transportation and gathering agreements are as follows: | ||||
(In thousands) | ||||
2015 | $ | 130,411 | ||
2016 | 161,675 | |||
2017 | 163,573 | |||
2018 | 138,917 | |||
2019 | 129,245 | |||
Thereafter | 1,226,791 | |||
$ | 1,950,612 | |||
In January 2015, the Company entered into a natural gas transportation agreement associated with the Company's production in Pennsylvania. This agreement increased the Company's future aggregate obligations under its transportation commitments by approximately $105.9 million over the next 10 years. | ||||
Drilling Rig Commitments | ||||
As of December 31, 2014, the Company entered into certain drilling rig commitments for three drilling rigs for its capital program in the Marcellus Shale and Eagle Ford Shale with initial terms ranging from two to three years. As of December 31, 2014, the future minimum commitments under these agreements are $14.4 million in 2015 and $7.0 million in 2016. | ||||
Lease Commitments | ||||
The Company leases certain office space, warehouse facilities, vehicles, machinery and equipment under cancelable and non-cancelable leases. Rent expense under these arrangements totaled $10.8 million, $12.3 million and $11.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||
Future minimum rental commitments under non-cancelable leases in effect at December 31, 2014 are as follows: | ||||
(In thousands) | ||||
2015 | $ | 5,818 | ||
2016 | 3,469 | |||
2017 | 2,873 | |||
2018 | 2,312 | |||
2019 | 1,877 | |||
Thereafter | 9,464 | |||
$ | 25,813 | |||
Legal Matters | ||||
Enexco Litigation | ||||
In October 2010, the Company was sued in the Texas District Court in Shelby County, Texas by a group of plaintiffs led by Enexco, Inc. The parties are conducting discovery. No trial date has been set. The plaintiffs allege that the Company was negligent and grossly negligent in conducting drilling operations on a natural gas well in Shelby County, Texas in which the plaintiffs were drilling participants in 2009. The plaintiffs allege that negligence in the Company’s drilling operations damaged not only that well, but also two nearby natural gas wells in which the plaintiffs owned interests. The plaintiffs seek damages for lost reserves of all three wells, costs of operations and associated facilities and attorneys’ fees, as well as exemplary damages based upon claims of gross negligence. | ||||
The Company has denied that its drilling operations were negligent and is vigorously disputing both the merits of plaintiffs’ claims and their allegations of damages. The plaintiffs seek actual damages of $10.0 million and exemplary damages of up to two and one half times of actual damages. The Company has established a reserve to provide for this potential liability based upon management’s best estimate of the potential loss; such reserve was not material. | ||||
Other | ||||
The Company is a defendant in various other 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 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, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income tax expense is summarized as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Current | ||||||||||||
Federal | $ | 44,887 | $ | 56,544 | $ | 24,618 | ||||||
State | (4,387 | ) | 10,841 | 563 | ||||||||
40,500 | 67,385 | 25,181 | ||||||||||
Deferred | ||||||||||||
Federal | (32,375 | ) | 111,147 | 57,704 | ||||||||
State | (80,192 | ) | 27,233 | 23,225 | ||||||||
(112,567 | ) | 138,380 | 80,929 | |||||||||
Income tax (benefit) expense | $ | (72,067 | ) | $ | 205,765 | $ | 106,110 | |||||
Income tax expense was different than the amounts computed by applying the statutory federal income tax rate as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
Computed "expected" federal income tax | $ | 11,341 | $ | 169,938 | $ | 83,244 | ||||||
Deferred tax adjustment related to change in overall state tax rate | (86,956 | ) | 15,220 | 13,596 | ||||||||
State income tax, net of federal income tax benefit | 903 | 17,513 | 9,609 | |||||||||
Valuation allowance | 3,977 | — | 262 | |||||||||
Uncertain tax positions | (1,974 | ) | 2,400 | — | ||||||||
Other, net | 642 | 694 | (601 | ) | ||||||||
Income tax expense | $ | (72,067 | ) | $ | 205,765 | $ | 106,110 | |||||
The composition of deferred tax liabilities and deferred tax assets were as follows: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Deferred Tax Assets | ||||||||||||
Net operating loss carryforward | $ | 141,961 | $ | 78,182 | ||||||||
Alternative minimum tax carryforward | 227,719 | 182,212 | ||||||||||
Foreign tax credit | 4,525 | 4,822 | ||||||||||
Derivative instruments | — | 3,946 | ||||||||||
Incentive compensation | 21,961 | 36,450 | ||||||||||
Deferred compensation | 9,531 | 11,988 | ||||||||||
Post-retirement benefits | 13,689 | 13,965 | ||||||||||
Other | 747 | 3,619 | ||||||||||
Total | 420,133 | 335,184 | ||||||||||
Deferred Tax Liabilities | ||||||||||||
Properties and equipment | 1,248,532 | 1,321,241 | ||||||||||
Derivative instruments | 50,750 | — | ||||||||||
Total | 1,299,282 | 1,321,241 | ||||||||||
Net deferred tax liabilities | $ | 879,149 | $ | 986,057 | ||||||||
As of December 31, 2014, the Company had alternative minimum tax credit carryforwards of $227.7 million, which do not expire and can be used to offset regular income taxes in future years to the extent that regular income taxes exceed the alternative minimum tax in any such year. The Company also had net operating loss carryforwards of $399.8 million and $483.7 million for federal and state reporting purposes, respectively, the majority of which will expire between 2020 and 2034. The Company believes it is more likely than not that these deferred tax benefits will be utilized prior to their expiration. Tax benefits related to employee stock-based compensation included in net operating loss carryforwards but not reflected in deferred tax assets as of December 31, 2014 are approximately $108.6 million. | ||||||||||||
For state income tax purposes, the Company must estimate the respective amounts of future earnings that are subject to income tax in the various states in which the Company operates. These estimates may change based on a variety of factors, including but not limited to the composition and location of the Company’s asset base and the location of the Company’s customers. In 2014, the Company’s effective tax rate decreased compared to 2013 due to a change in estimated deferred state tax liabilities reflected in the Company’s Consolidated Balance Sheet, which was based on updated state apportionment factors in states in which it operates. | ||||||||||||
Unrecognized Tax Benefits | ||||||||||||
A reconciliation of unrecognized tax benefits is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Balance at beginning of year | $ | 3,700 | $ | — | $ | — | ||||||
Additions based on tax provisions related to the current year | — | 3,700 | — | |||||||||
Additions for tax positions of prior years | — | — | — | |||||||||
Reductions for tax positions of prior years | (3,037 | ) | — | — | ||||||||
Settlements | — | — | — | |||||||||
Balance at end of year | $ | 663 | $ | 3,700 | $ | — | ||||||
During 2013, the Company recorded unrecognized tax benefits of $3.7 million based on the allocation of certain gains associated with its divestitures for purposes of computing state income taxes. These benefits were reduced during 2014 by $3.0 million based on changes to the Company's state tax rates. If recognized, the net tax benefit of $0.7 million would not have a material effect on the Company's effective tax rate. | ||||||||||||
The Company files income tax returns in the U.S. federal, various states and other jurisdictions. The Company is no longer subject to examinations by state authorities before 2010 or by federal authorities before 2011. The Company is not currently under examination by the Internal Revenue Service. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
Employee Benefit Plans | Employee Benefit Plans | |||||||||||
Pension Plan | ||||||||||||
In September 2010, the Company terminated its non-contributory, defined benefit pension plan for all full-time employees, referred to as the tax qualified defined benefit pension plan (qualified pension plan) and its unfunded non-qualified supplemental pension plan to ensure payments to certain executive officers of amounts to which they would have been entitled under the provisions of the pension plan, but for limitations imposed by federal tax laws, referred to as the supplemental non-qualified pension arrangements (non-qualified pension plan). The non-qualified pension plan was liquidated in 2012. On March 14, 2012, the Internal Revenue Service provided the Company with a favorable determination letter for the termination of the Company's qualified pension plan, which was liquidated in 2013. | ||||||||||||
The Company recorded net periodic pension cost, which is included in general and administrative expense in the Consolidated Statement of Operations, of $19.5 million for the year ended December 31, 2012. There was no net periodic pension cost recorded in 2014 and 2013. | ||||||||||||
Postretirement Benefits Other than Pensions | ||||||||||||
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. The Company was providing postretirement benefits to 278 retirees and their dependents at the end of 2014 and 270 retirees and their dependents at the end of 2013. | ||||||||||||
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 funded 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) | 2014 | 2013 | 2012 | |||||||||
Change in Benefit Obligation | ||||||||||||
Benefit obligation at beginning of year | $ | 34,995 | $ | 40,168 | $ | 39,969 | ||||||
Service cost | 1,295 | 1,739 | 1,513 | |||||||||
Interest cost | 1,343 | 1,500 | 1,537 | |||||||||
Actuarial (gain) loss | 373 | (7,618 | ) | (2,073 | ) | |||||||
Benefits paid | (930 | ) | (794 | ) | (778 | ) | ||||||
Benefit obligation at end of year | $ | 37,076 | $ | 34,995 | $ | 40,168 | ||||||
Change in Plan Assets | ||||||||||||
Fair value of plan assets at end of year | — | — | — | |||||||||
Funded status at end of year | $ | (37,076 | ) | $ | (34,995 | ) | $ | (40,168 | ) | |||
Amounts Recognized in the Balance Sheet | ||||||||||||
Amounts recognized in the balance sheet consist of the following: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Current liabilities | $ | 1,249 | $ | 1,441 | $ | 1,304 | ||||||
Long-term liabilities | 35,827 | 33,554 | 38,864 | |||||||||
$ | 37,076 | $ | 34,995 | $ | 40,168 | |||||||
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Amounts recognized in accumulated other comprehensive income (loss) consist of the following: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Net actuarial loss | $ | 3,408 | $ | 3,010 | $ | 11,269 | ||||||
$ | 3,408 | $ | 3,010 | $ | 11,269 | |||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Loss) | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Components of Net Periodic Postretirement Benefit Cost | ||||||||||||
Service cost | $ | 1,295 | $ | 1,739 | $ | 1,513 | ||||||
Interest cost | 1,343 | 1,500 | 1,537 | |||||||||
Amortization of net (gain) loss | (26 | ) | 641 | 824 | ||||||||
Net periodic postretirement cost | $ | 2,612 | $ | 3,880 | $ | 3,874 | ||||||
Other Changes in Benefit Obligations Recognized in Other Comprehensive Income (Loss) | ||||||||||||
Net (gain) loss | $ | 373 | $ | (7,618 | ) | $ | (2,073 | ) | ||||
Amortization of net (gain) loss | 26 | (641 | ) | (824 | ) | |||||||
Total recognized in other comprehensive income (loss) | 399 | (8,259 | ) | (2,897 | ) | |||||||
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ | 3,011 | $ | (4,379 | ) | $ | 977 | |||||
Assumptions | ||||||||||||
Assumptions used to determine projected postretirement benefit obligations and postretirement costs are as follows: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Discount rate(1) | 4 | % | 4.75 | % | 4 | % | ||||||
Health care cost trend rate for medical benefits assumed for next year | 6 | % | 6.5 | % | 7 | % | ||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.5 | % | 4.5 | % | 5 | % | ||||||
Year that the rate reaches the ultimate trend rate | 2018 | 2018 | 2015 | |||||||||
_______________________________________________________________________________ | ||||||||||||
-1 | Represents the year end rates used to determine the projected benefit obligation. To compute postretirement cost in 2014, 2013 and 2012, respectively, the beginning of year discount rates of 4.75%, 4.00% 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% of the expected annual fully-insured premium for participants age 65 and older. For all participants under age 65, the Company subsidy for all retiree medical and prescription drug benefits, beginning January 1, 2006, was limited to an aggregate annual amount not to exceed $648,000. This limit increases by 3.5% annually thereafter. | ||||||||||||
Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||||||
(In thousands) | 1-Percentage-Point Increase | 1-Percentage-Point Decrease | ||||||||||
Effect on total of service and interest cost | $ | 678 | $ | (308 | ) | |||||||
Effect on postretirement benefit obligation | 6,098 | (4,893 | ) | |||||||||
Cash Flows | ||||||||||||
Contributions. The Company expects to contribute approximately $1.3 million to the postretirement benefit plan in 2015. | ||||||||||||
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) | ||||||||||||
2015 | 1,274 | |||||||||||
2016 | 1,333 | |||||||||||
2017 | 1,477 | |||||||||||
2018 | 1,623 | |||||||||||
2019 | 1,820 | |||||||||||
Years 2020 - 2024 | 11,329 | |||||||||||
Savings Investment Plan | ||||||||||||
The Company has a Savings Investment Plan (SIP), which is a defined contribution plan. The Company matches a portion of employees' contributions in cash. Participation in the SIP is voluntary and all regular employees of the Company are eligible to participate. The Company matches employee contributions dollar-for-dollar, up to the maximum IRS limit, on the first six percent of an employee's pretax earnings. The SIP also provides for discretionary profit sharing contributions in an amount equal to nine percent of an eligible plan participant's salary and bonus. During the years ended December 31, 2014, 2013 and 2012, the Company made contributions of $7.2 million, $6.9 million and $6.3 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 $13.1 million and $12.5 million at December 31, 2014 and 2013, respectively, and is included in other assets in the Consolidated Balance Sheet. Related liabilities, including the Company's common stock, totaled $28.9 million and $33.2 million at December 31, 2014 and 2013, 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, 2014, 534,174 shares of the Company's common stock were held in the rabbi trust. These shares were recorded at the market value on the date of deferral, which totaled $5.7 million at December 31, 2014 and 2013, respectively, and is included in additional paid-in capital in stockholders' equity in the Consolidated Balance Sheet. During 2014, the Company recognized $4.9 million in general and administrative expense in the Consolidated Statement of Operations representing the decrease in the closing price of the Company's shares held in the trust. The Company's common stock issued to the trust is not considered outstanding for purposes of calculating basic earnings per share, but is considered a common stock equivalent in the calculation of diluted earnings per share. | ||||||||||||
The Company made contributions to the deferred compensation plan of $0.8 million, $0.7 million and $0.7 million in 2014, 2013 and 2012, respectively, which are included in general and administrative expense in the Consolidated Statement of Operations. |
Capital_Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Capital Stock | Capital Stock |
Incentive Plans | |
On May 1, 2014, the Company’s shareholders approved the 2014 Incentive Plan, which replaced the 2004 Incentive Plan that expired on April 29, 2014. Under the 2014 Incentive Plan, incentive and non-statutory stock options, stock appreciation rights (SARs), stock awards, cash awards and performance awards may be granted to key employees, consultants and officers of the Company. Non-employee directors of the Company may be granted discretionary awards under the 2014 Incentive Plan consisting of stock options or stock awards. A total of 18 million shares of common stock may be issued under the 2014 Incentive Plan. Under the 2014 Incentive Plan, no more than 10 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, 2014, approximately 18.0 million shares are available for issuance under the 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. | |
Increase in Authorized Shares | |
In May 2014, the Company’s shareholders approved an increase in the authorized number of shares of common stock from 480 million to 960 million shares. | |
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 year ended December 31, 2014 and 2013, the Company repurchased 4.3 million shares for a total cost of $138.9 million and 4.8 million shares for a total cost of $164.6 million, respectively. There were no share repurchases in 2012. Since the authorization date, the Company has repurchased 29.9 million shares of the 40.0 million total shares authorized, of which 20.0 million shares have been retired, for a total cost of approximately $388.4 million. No treasury shares have been delivered or sold by the Company subsequent to the repurchase. As of December 31, 2014, 9.9 million shares were held as treasury stock. | |
Dividend Restrictions | |
The Board of Directors of the Company determines the amount of future cash dividends, if any, to be declared and paid on the common stock depending on, among other things, the Company's financial condition, funds from operations, the level of its capital and exploration expenditures, and its future business prospects. None of the fixed rate note or credit agreements in place have restricted payment provisions or other provisions limiting dividends. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||||||||||
General | |||||||||||||||||||||
Compensation expense for stock-based awards for the years ended December 31, 2014, 2013 and 2012 was $21.5 million, $51.8 million and $33.5 million, respectively, and is included in general and administrative expense in the Consolidated Statement of Operations. | |||||||||||||||||||||
For the years ended December 31, 2014 and 2013, the Company realized $(1.4) million and $18.9 million tax (expense) benefit related to the federal tax deduction in excess of book compensation cost for employee stock-based compensation. The Company is able to recognize tax benefits only to the extent they reduce the Company's income taxes payable. There were no excess tax benefits recorded for the year ended December 31, 2012 as the Company was in a net operating loss position for federal income tax purposes. | |||||||||||||||||||||
Restricted Stock Awards | |||||||||||||||||||||
Restricted stock awards are granted from time to time to employees of the Company. The fair value of restricted stock grants under the 2004 Incentive Plan is based on the average of the high and low stock price on the grant date and the fair value of restricted stock grants under the the 2014 Incentive Plan (approved by shareholders on May 1, 2014) 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 3 or 4 year service period. | |||||||||||||||||||||
For awards that vest at the end of the service period, expense is recognized ratably using a straight-line approach over the service period. Under the graded or graduated approach, the Company recognizes compensation cost ratably over the requisite service period, as applicable, for each separately vesting tranche as though the awards are, in substance, multiple awards. For all restricted stock awards, vesting is dependent upon the employees' continued service with the Company, with the exception of employment termination due to death, disability or retirement. The Company accelerates the vesting period for retirement-eligible employees for purposes of recognizing compensation expense in accordance with the vesting provisions of the Company's stock-based compensation programs. | |||||||||||||||||||||
The Company used an annual forfeiture rate assumption ranging from 5.0% to 7.0% for purposes of recognizing stock-based compensation expense for restricted stock awards. The annual forfeiture rates were based on the Company's actual forfeiture history for this type of award to various employee groups. | |||||||||||||||||||||
The following table is a summary of restricted stock award activity: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average Grant | Average Grant | Average Grant | |||||||||||||||||||
Date Fair Value | Date Fair Value | Date Fair Value | |||||||||||||||||||
per Share | per Share | per Share | |||||||||||||||||||
Outstanding at beginning of period | 27,806 | $ | 20.53 | 71,508 | $ | 11.82 | 476,388 | $ | 9.18 | ||||||||||||
Granted | 47,500 | 34.76 | 7,200 | 35.7 | 13,100 | 18.42 | |||||||||||||||
Vested | (17,437 | ) | 15.84 | (50,902 | ) | 10.44 | (402,800 | ) | 9.03 | ||||||||||||
Forfeited | (8,000 | ) | 35 | — | — | (15,180 | ) | 8.8 | |||||||||||||
Outstanding at end of period(1)(2) | 49,869 | $ | 33.4 | 27,806 | $ | 20.53 | 71,508 | $ | 11.82 | ||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||
-1 | As of December 31, 2014, the aggregate intrinsic value was $1.5 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2014 by the number of non-vested restricted stock awards outstanding. | ||||||||||||||||||||
-2 | As of December 31, 2014, the weighted average remaining contractual term of non-vested restricted stock awards outstanding was 1.9 years. | ||||||||||||||||||||
Compensation expense recorded for all restricted stock awards for the years ended December 31, 2014, 2013 and 2012 was $1.0 million, $0.2 million and $1.1 million, respectively. Unamortized expense as of December 31, 2014 for all outstanding restricted stock awards was $0.8 million and will be recognized over the next year. | |||||||||||||||||||||
The total fair value of restricted stock awards that vested during 2014, 2013 and 2012 was $0.6 million, $1.6 million and $3.6 million, respectively. | |||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||
Restricted stock units are granted from time to time to non-employee directors of the Company. The fair value of the restricted stock units granted under the 2004 Incentive Plan is based on the average of the high and low stock price on the grant date and the fair value of restricted stock units granted under the the 2014 Incentive Plan (approved by shareholders on May 1, 2014) 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, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average Grant | Average Grant | Average Grant | |||||||||||||||||||
Date Fair Value | Date Fair Value | Date Fair Value | |||||||||||||||||||
per Share | per Share | per Share | |||||||||||||||||||
Outstanding at beginning of period | 566,321 | $ | 10.75 | 515,468 | $ | 9.1 | 687,308 | $ | 7.88 | ||||||||||||
Granted and fully vested | 37,893 | 38.28 | 50,853 | 27.53 | 76,608 | 18.28 | |||||||||||||||
Issued | — | — | — | — | (248,448 | ) | 8.56 | ||||||||||||||
Forfeited | — | — | — | — | — | — | |||||||||||||||
Outstanding at end of period(1)(2) | 604,214 | $ | 12.48 | 566,321 | $ | 10.75 | 515,468 | $ | 9.1 | ||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||
-1 | As of December 31, 2014, the aggregate intrinsic value was $17.9 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2014 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 years ended December 31, 2014, 2013 and 2012 was $1.5 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 following table is a summary of SAR activity: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
Outstanding at beginning of period | 667,764 | $ | 12.63 | 1,722,444 | $ | 9.75 | 2,576,260 | $ | 8.02 | ||||||||||||
Granted | — | — | — | — | 240,884 | 17.59 | |||||||||||||||
Exercised | — | — | (1,054,680 | ) | 7.92 | (1,094,700 | ) | 7.42 | |||||||||||||
Forfeited or expired | — | — | — | — | — | — | |||||||||||||||
Outstanding at end of period(1) | 667,764 | $ | 12.63 | 667,764 | $ | 12.63 | 1,722,444 | $ | 9.75 | ||||||||||||
Exercisable at end of period(2) | 590,960 | $ | 11.98 | 386,582 | $ | 11.33 | 1,145,972 | $ | 7.97 | ||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||
-1 | The intrinsic value of a SAR is the amount which the current market value of the underlying stock exceeds the exercise price of the SAR. As of December 31, 2014, the aggregate intrinsic value and weighted-average remaining contractual term of SARs outstanding was $11.3 million and 3.3 years, respectively. | ||||||||||||||||||||
-2 | As of December 31, 2014, the aggregate intrinsic value and weighted-average remaining contractual term of SARs exercisable was $10.4 million and 3.2 years, respectively. | ||||||||||||||||||||
Compensation expense recorded for all outstanding SARs for the years ended December 31, 2014, 2013 and 2012 was $0.1 million, $0.3 million and $1.9 million, respectively. In 2012 there was $1.2 million related to the immediate expensing of shares granted to retirement-eligible employees. As of December 31, 2014, there was no remaining unamortized expense to be recognized for the outstanding SARs. | |||||||||||||||||||||
The Company calculates the fair value of SARs using the Black-Scholes model. The assumptions used in the Black-Scholes calculation on the date of grant for SARs are as follows: | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Weighted-average value per SAR granted during the period | $ | 8.16 | |||||||||||||||||||
Assumptions | |||||||||||||||||||||
Stock price volatility | 55.3 | % | |||||||||||||||||||
Risk free rate of return | 0.9 | % | |||||||||||||||||||
Expected dividend yield | 0.3 | % | |||||||||||||||||||
Expected term (in years) | 5 | ||||||||||||||||||||
The expected term was derived by reviewing minimum and maximum expected term outputs from the Black-Scholes model based on award type and employee type. This term represents the period of time that awards granted are expected to be outstanding. The stock price volatility was calculated using historical closing stock price data for the Company for the period associated with the expected term through the grant date of each award. The risk free rate of return percentages are based on the continuously compounded equivalent of the U.S. Treasury (Nominal 10) within the expected term as measured on the grant date. The expected dividend percentage assumes that the Company will continue to pay a consistent level of dividend each quarter. | |||||||||||||||||||||
Performance Share Awards | |||||||||||||||||||||
The Company grants three types of performance share awards: two based on performance conditions measured against the Company's internal performance metrics (Employee Performance Share Awards and Hybrid Performance Share Awards) and one based on market conditions measured based on the Company's performance relative to a predetermined peer group (TSR Performance Share Awards). The performance period for these awards commences on January 1 of the respective year in which the award was granted and extends over a three-year performance period. For all performance share awards, the Company used an annual forfeiture rate assumption ranging from 0% to 6% for purposes of recognizing stock-based compensation expense for its performance share awards. | |||||||||||||||||||||
Performance Share Awards Based on Internal Performance Metrics | |||||||||||||||||||||
The fair value of performance award grants based on internal performance metrics is based on the 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. 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, 2014, 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, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average Grant | Average Grant | Average Grant | |||||||||||||||||||
Date Fair Value | Date Fair Value | Date Fair Value | |||||||||||||||||||
per Share | per Share | per Share | |||||||||||||||||||
Outstanding at beginning of period | 1,657,980 | $ | 16.25 | 1,919,640 | $ | 12.27 | 2,627,900 | $ | 8.12 | ||||||||||||
Granted | 241,130 | 39.43 | 379,540 | 26.62 | 567,360 | 17.59 | |||||||||||||||
Issued and fully vested | (751,780 | ) | 10.19 | (610,960 | ) | 10.13 | (1,189,920 | ) | 5.66 | ||||||||||||
Forfeited | (58,370 | ) | 23.57 | (30,240 | ) | 17.06 | (85,700 | ) | 12.11 | ||||||||||||
Outstanding at end of period | 1,088,960 | $ | 25.18 | 1,657,980 | $ | 16.25 | 1,919,640 | $ | 12.27 | ||||||||||||
Hybrid Performance Share Awards. The Hybrid Performance Share Awards have a three-year graded performance period. The 2014 and the 2013 awards vest 25% on each of the first and second anniversary dates and 50% on the third anniversary and the 2012 awards vest one-third on each anniversary date, 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, 2014, 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, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average Grant | Average Grant | Average Grant | |||||||||||||||||||
Date Fair Value | Date Fair Value | Date Fair Value | |||||||||||||||||||
per Share | per Share | per Share | |||||||||||||||||||
Outstanding at beginning of period | 450,212 | $ | 18.96 | 592,162 | $ | 13.11 | 759,328 | $ | 9.16 | ||||||||||||
Granted | 123,257 | 39.43 | 169,980 | 26.62 | 234,922 | 17.59 | |||||||||||||||
Issued and fully vested | (244,408 | ) | 15.41 | (311,930 | ) | 12.03 | (402,088 | ) | 8.27 | ||||||||||||
Forfeited | — | — | — | — | — | — | |||||||||||||||
Outstanding at end of period | 329,061 | $ | 29.27 | 450,212 | $ | 18.96 | 592,162 | $ | 13.11 | ||||||||||||
Performance Share Awards Based on Market Conditions | |||||||||||||||||||||
These awards have both an equity and liability component, with the right to receive up to the first 100% of the award in shares of common stock and the right to receive up to an additional 100% of the value of the award in excess of the equity component in cash. The equity portion of these awards is valued on the grant date and is not marked to market, while the liability portion of the awards is valued as of the end of each reporting period on a mark-to-market basis. The Company calculates the fair value of the equity and liability portions of the awards using a Monte Carlo simulation model. | |||||||||||||||||||||
TSR Performance Share Awards. The TSR Performance Share Awards granted are earned, or not earned, based on the comparative performance of the Company's common stock measured against a predetermined group of companies in the Company's peer group over a three-year performance period. | |||||||||||||||||||||
The following table is a summary of activity for the TSR Performance Share Awards: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average Grant | Average Grant | Average Grant | |||||||||||||||||||
Date Fair Value | Date Fair Value | Date Fair Value | |||||||||||||||||||
per Share(1) | per Share(1) | per Share(1) | |||||||||||||||||||
Outstanding at beginning of period | 860,686 | $ | 14.06 | 605,706 | $ | 10.27 | 1,495,904 | $ | 6.07 | ||||||||||||
Granted | 184,885 | 32.04 | 254,980 | 23.06 | 234,922 | 14.16 | |||||||||||||||
Issued and fully vested | (370,784 | ) | 7.81 | — | — | (1,125,120 | ) | 5.49 | |||||||||||||
Forfeited | — | — | — | — | — | — | |||||||||||||||
Outstanding at end of period | 674,787 | $ | 22.42 | 860,686 | $ | 14.06 | 605,706 | $ | 10.27 | ||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||
(1) The grant date fair value figures in this table represent the fair value of the equity component of the performance | |||||||||||||||||||||
share awards. | |||||||||||||||||||||
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, 2014 and 2013, was $4.0 million and $7.8 million, respectively. The current portion of the liability, included in accrued liabilities in the Consolidated Balance Sheet at December 31, 2014 and 2013 was $7.0 million and $14.3 million, respectively. The Company made cash payments of $7.0 million and $18.4 million, for the years ended December 31, 2014 and 2012, respectively. There was not a cash payout associated with the TSR Performance Share Awards during 2013. | |||||||||||||||||||||
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, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fair value per performance share award granted during the period | $ | 32.04 | $ | 23.06 | $ | 14.16 | |||||||||||||||
Assumptions | |||||||||||||||||||||
Stock price volatility | 41.3 | % | 43.8 | % | 46.7 | % | |||||||||||||||
Risk free rate of return | 0.7 | % | 0.4 | % | 0.4 | % | |||||||||||||||
Expected dividend yield | 0.2 | % | 0.2 | % | 0.2 | % | |||||||||||||||
The following assumptions were used to determine the fair value of the liability component of the TSR Performance Share Awards for the respective periods: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fair value per performance share award at the end of the period | $12.88 - $29.72 | $23.96 - $38.61 | $19.11 - $24.76 | ||||||||||||||||||
Assumptions | |||||||||||||||||||||
Stock price volatility | 29.1% - 29.7% | 30.2% - 35.9% | 41.1% - 45.7% | ||||||||||||||||||
Risk free rate of return | 0.3% - 0.7% | 0.1% - 0.4% | 0.2% - 0.3% | ||||||||||||||||||
Expected dividend yield | 0.30% | 0.20% | 0.20% | ||||||||||||||||||
The stock price volatility was calculated using historical closing stock price data for the Company for the period associated with the expected term through the grant date of each award. The risk free rate of return percentages are based on the continuously compounded equivalent of the U.S. Treasury (Nominal 10) within the expected term as measured on the grant date. The expected dividend percentage assumes that the Company will continue to pay a consistent level of dividend each quarter. | |||||||||||||||||||||
Other Information | |||||||||||||||||||||
Compensation expense recorded for both the equity and liability components of all performance share awards for the years ended December 31, 2014, 2013 and 2012 was $20.8 million, $30.9 million and $24.6 million, respectively. Total unamortized compensation expense related to the equity component of performance shares at December 31, 2014 was $18.2 million and will be recognized over the next 1.9 years. | |||||||||||||||||||||
As of December 31, 2014, the aggregate intrinsic value for all performance share awards was $62.0 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2014 by the number of unvested performance share awards outstanding. As of December 31, 2014, the weighted average remaining contractual term of unvested performance share awards outstanding was approximately 0.9 years. | |||||||||||||||||||||
On December 31, 2014, the performance period ended for two types of performance share awards that were granted in 2012. 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 2015 and was certified by the Compensation Committee in February 2015. As the Company achieved the three performance metrics, 504,620 shares with a grant date fair value of $8.9 million were issued in February 2015. For the TSR Performance Share Awards, 234,922 shares with a grant date fair value of $3.3 million were issued, in addition to a cash payment of $7.0 million, based on the Company's ranking relative to a predetermined peer group. The calculation of the award payout was certified by the Compensation Committee on January 2, 2015. | |||||||||||||||||||||
Supplemental Employee Incentive Plan | |||||||||||||||||||||
The Supplemental Employee Incentive Plan (the Plan) adopted by the Company's Board of Directors is intended to provide a compensation tool tied to stock market value creation to serve as an incentive and retention vehicle for full-time, non-officer employees by providing for cash payments in the event the Company's common stock reaches a specified trading price. The Compensation Committee can increase any of the payments as applied to any employee if desired. Any deferred portion will only be paid if the participant is employed by the Company, or has terminated employment by reason of retirement, death or disability (as provided in the Plan). Payments are subject to certain other restrictions contained in the Plan. | |||||||||||||||||||||
The Plan currently provides for a payout if the closing price per share of the Company's common stock for any 20 trading days out of any 60 days consecutive trading days equals or exceeds an interim price goal per share within two years of the effective date of the plan (interim trigger date) or a final price goal per share within four years of the effective date of the plan (final trigger date). Under the Plan and upon approval by the Compensation Committee, each eligible employee may receive a distribution of 20% of base salary if the interim trigger is met or 50% of base salary if the final trigger is met (or an incremental 30% of base salary if the interim trigger was previously achieved). In accordance with the Plan, in the event either the interim or final trigger date occurs within the first 30 months from the effective date, 25% of the total distribution will be paid immediately and the remaining 75% will be deferred and paid at a future date as described in the Plan. For final trigger dates occurring during the last 18 months but before the end of the Plan, total distribution will be paid immediately. | |||||||||||||||||||||
The Plan is accounted for as a liability award under the authoritative accounting guidance for stock-based compensation and is valued as of the end of each reporting period on a mark-to-market basis using a Monte Carlo simulation model. In addition to the expected value of plan payouts, the simulation technique also generates an expected trigger date for the two types of payments made under this plan, which is used to determine the requisite service period. The Company recognized compensation expense of $3.0 million, $11.5 million and $1.4 million for years ended December 31, 2014, 2013 and 2012, respectively, related to the Plan. The Company made payments under the Plan of $13.0 million and $4.5 million for years ended December 31, 2014 and 2013, respectively. There were no payments made under the Plan for the year ended December 31, 2012. | |||||||||||||||||||||
SEIP II. Supplemental Employee Incentive Plan II (SEIP II) expired on June 30, 2012 and there were no amounts paid under the expired plan. | |||||||||||||||||||||
SEIP III. On May 1, 2012, the Company's Board of Directors adopted the Supplemental Employee Incentive Plan III (SEIP III) to replace the SEIP II with an effective date of July 1, 2013. The SEIP III provides for a payout under the Plan if the closing price per share of the Company's common stock equals or exceeds the price goal of $25.00 per share by June 30, 2014 (interim trigger date) or $37.50 per share by June 30, 2016 (final trigger date). | |||||||||||||||||||||
On February 11, 2013, the Company achieved the price goal of $25.00 per share prior to the interim trigger date. Accordingly, a total distribution of approximately $6.8 million was earned by the Company's eligible employees under the Plan, of which 25% of the total distribution, or $1.7 million, was paid in February 2013 and the remaining 75%, or $4.9 million, was paid in August 2014 in accordance with the SEIP III. | |||||||||||||||||||||
On August 27, 2013, the Company achieved the price goal of $37.50 per share prior to the final trigger date. Accordingly, a total distribution of approximately $11.1 million was earned by the Company's eligible employees under the Plan, of which 25% of the total distribution, or $2.8 million, was paid in September 2013 and the remaining 75%, or $8.1 million, was paid in August 2014 in accordance with the SEIP III. | |||||||||||||||||||||
SEIP IV. On September 19, 2013, the Company's Board of Directors adopted the Supplemental Employee Incentive Plan IV (SEIP IV) to replace the SEIP III with an effective date of October 1, 2013. The SEIP IV provides for a payout under the Plan if the closing price per share of the Company's common stock equals or exceeds the price goal of $55.00 per share by September 30, 2015 (interim trigger date) or $80.00 per share by September 30, 2017 (final trigger date). | |||||||||||||||||||||
The following assumptions were used to determine the fair value of the SEIP III and SEIP IV liabilities at the end of the respective periods: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Valuation Assumptions | |||||||||||||||||||||
Stock price volatility | 33.4 | % | 38 | % | 39.5 | % | |||||||||||||||
Risk free rate of return | 1 | % | 1.1 | % | 0.5 | % | |||||||||||||||
Annual salary increase rate | 4 | % | 4 | % | 4 | % | |||||||||||||||
Annual turnover rate | 4.6 | % | 4.6 | % | 6.1 | % | |||||||||||||||
Deferred Performance Shares | |||||||||||||||||||||
As of December 31, 2014, 534,174 shares of the Company's common stock representing vested performance share awards were deferred into the deferred compensation plan. No shares were sold out of the plan in 2014. During 2014, a decrease to the deferred compensation liability of $4.3 million was recognized, representing a decrease in the Company's common stock held in the rabbi trust from December 31, 2013 to December 31, 2014. 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, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings per Common Share | 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 vested at the end of the applicable period. | |||||||||
The following is a calculation of basic and diluted weighted-average shares outstanding: | |||||||||
December 31, | |||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||
Weighted-average shares—basic | 415,840 | 420,188 | 419,075 | ||||||
Dilution effect of stock appreciation rights and stock awards at end of period | 1,761 | 2,187 | 2,912 | ||||||
Weighted-average shares—diluted | 417,601 | 422,375 | 421,987 | ||||||
Weighted-average shares excluded from diluted earnings per share due to the anti-dilutive effect | 20 | 5 | 85 | ||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive (Loss) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Equity [Abstract] | ||||||||||||||
Accumulated Other Comprehensive (Loss) | Accumulated Other Comprehensive (Loss) | |||||||||||||
Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows: | ||||||||||||||
(In thousands) | Net Gains | Defined Benefit | Total | |||||||||||
(Losses) on | Pension and | |||||||||||||
Cash Flow | Postretirement | |||||||||||||
Hedges | Benefits | |||||||||||||
Balance at December 31, 2011 | $ | 121,358 | $ | (16,811 | ) | $ | 104,547 | |||||||
Other comprehensive income (loss) before reclassifications | 53,815 | 1,258 | 55,073 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (144,456 | ) | 8,716 | (135,740 | ) | |||||||||
Net current-period other comprehensive income (loss) | $ | (90,641 | ) | $ | 9,974 | $ | (80,667 | ) | ||||||
Balance at December 31, 2012 | $ | 30,717 | $ | (6,837 | ) | $ | 23,880 | |||||||
Other comprehensive income (loss) | (2,720 | ) | 4,641 | 1,921 | ||||||||||
before reclassifications | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (34,548 | ) | 386 | (34,162 | ) | |||||||||
Net current-period other comprehensive income (loss) | (37,268 | ) | 5,027 | (32,241 | ) | |||||||||
Balance at December 31, 2013 | $ | (6,551 | ) | $ | (1,810 | ) | $ | (8,361 | ) | |||||
Other comprehensive income (loss) | (80,175 | ) | (325 | ) | (80,500 | ) | ||||||||
before reclassifications | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 86,726 | (16 | ) | 86,710 | ||||||||||
Net current-period other comprehensive income (loss) | 6,551 | (341 | ) | 6,210 | ||||||||||
Balance at December 31, 2014 | $ | — | $ | (2,151 | ) | $ | (2,151 | ) | ||||||
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 Condensed | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | Consolidated Statement of Operations | ||||||||||
Net Gains (Losses) on Cash Flow Hedges | ||||||||||||||
Commodity contracts | $ | (143,577 | ) | $ | 52,733 | $ | 225,108 | Natural gas revenues | ||||||
Commodity contracts | (626 | ) | 4,269 | 11,218 | Crude oil and condensate revenues | |||||||||
Defined Benefit Pension and Postretirement Benefits | ||||||||||||||
Amortization of prior service cost | — | — | (221 | ) | General and administrative expense | |||||||||
Amortization of net (gain) loss | 26 | (641 | ) | (13,906 | ) | General and administrative expense | ||||||||
(144,177 | ) | 56,361 | 222,199 | Total before tax | ||||||||||
57,467 | (22,199 | ) | (86,459 | ) | Tax expense | |||||||||
Total reclassifications for the period | $ | (86,710 | ) | $ | 34,162 | $ | 135,740 | Net of tax | ||||||
Additional_Balance_Sheet_Infor
Additional Balance Sheet Information | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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) | 2014 | 2013 | ||||||
Accounts receivable, net | ||||||||
Trade accounts | $ | 227,835 | $ | 215,361 | ||||
Joint interest accounts | 2,245 | 7,261 | ||||||
Income taxes receivable | 3,612 | 922 | ||||||
Other accounts | 6,515 | 746 | ||||||
240,207 | 224,290 | |||||||
Allowance for doubtful accounts | (1,198 | ) | (1,814 | ) | ||||
$ | 239,009 | $ | 222,476 | |||||
Inventories | ||||||||
Natural gas in storage | $ | 3,281 | $ | 9,056 | ||||
Tubular goods and well equipment | 10,675 | 8,396 | ||||||
Other accounts | 70 | 16 | ||||||
$ | 14,026 | $ | 17,468 | |||||
Other current assets | ||||||||
Prepaid balances and other | 1,855 | 2,587 | ||||||
$ | 1,855 | $ | 2,587 | |||||
Other assets | ||||||||
Deferred compensation plan | $ | 13,115 | $ | 12,507 | ||||
Debt issuance cost | 17,349 | 16,476 | ||||||
Other accounts | 65 | 79 | ||||||
$ | 30,529 | $ | 29,062 | |||||
Accounts payable | ||||||||
Trade accounts | 54,949 | 26,023 | ||||||
Natural gas purchases | 2,407 | 2,052 | ||||||
Royalty and other owners | 97,298 | 79,150 | ||||||
Accrued capital costs | 222,426 | 146,899 | ||||||
Taxes other than income | 16,806 | 13,677 | ||||||
Drilling advances | 88 | 14,093 | ||||||
Other accounts | 6,102 | 6,907 | ||||||
$ | 400,076 | $ | 288,801 | |||||
Accrued liabilities | ||||||||
Employee benefits | $ | 22,815 | $ | 43,599 | ||||
Taxes other than income | 7,128 | 6,894 | ||||||
Interest payable | 30,677 | 20,211 | ||||||
Other accounts | 3,049 | 2,897 | ||||||
$ | 63,669 | $ | 73,601 | |||||
Other liabilities | ||||||||
Deferred compensation plan | $ | 28,932 | $ | 33,211 | ||||
Other accounts | 10,675 | 13,043 | ||||||
$ | 39,607 | $ | 46,254 | |||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information | |||||||||||
Cash paid for interest and income taxes are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Interest | $ | 58,487 | $ | 63,279 | $ | 64,970 | ||||||
Income taxes | 77,029 | 35,281 | 22,501 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Presentation and Nature of Operations | Basis of Presentation and Nature of Operations | |
Cabot Oil & Gas Corporation and its subsidiaries (the Company) are engaged in the development, exploitation, exploration, production and marketing of natural gas, oil and, to a lesser extent, NGLs exclusively within the continental United States. The Company also transports, stores, gathers and purchases natural gas for resale. The Company's exploration and development activities are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. | ||
The Company operates in one segment, natural gas and oil development, exploitation and exploration. The Company's oil and gas properties are managed as a whole rather than through discrete operating segments or business units. Operational information is tracked by geographic area; however, financial performance is assessed as a single enterprise and not on a geographic basis. Allocation of resources is made on a project basis across the Company's entire portfolio without regard to geographic areas. | ||
The consolidated financial statements include the accounts of the Company and its subsidiaries after eliminating all significant intercompany balances and transactions. Certain reclassifications have been made to prior year statements to conform with current year presentation. These reclassifications have no impact on previously reported net income. | ||
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, 2014 and in two financial institutions at December 31, 2013. The Company periodically assesses the financial condition of its financial institutions and considers any possible credit risk to be minimal. | ||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | |
The Company records an allowance for doubtful accounts for receivables that the Company determines to be uncollectible based on the specific identification method. | ||
Inventories | Inventories | |
Inventories are comprised of natural gas in storage, tubular goods and well equipment and pipeline imbalances. Natural gas in storage and tubular goods and well equipment balances are carried at the lower of average cost or market. | ||
Natural gas gathering and pipeline operations normally include imbalance arrangements with the pipeline. The volumes of natural gas due to or from the Company under imbalance arrangements are recorded at actual selling or purchase prices, as the case may be, and are adjusted monthly to market prices. | ||
Equity Method Investments | Equity Method Investments | |
The Company accounts for its investments in entities over which the Company has significant influence, but not control, using the equity method of accounting. Under the equity method of accounting, the Company increases its investment for contributions made and records its proportionate share of net earnings, declared dividends and partnership distributions based on the most recently available financial statements of the investee. The Company also evaluates its equity method investments for potential impairment whenever events or changes in circumstances indicate that there is an other-than-temporary decline in the value of the investment. | ||
Properties and Equipment | Properties and Equipment | |
The Company uses the successful efforts method of accounting for oil and gas producing activities. Under this method, acquisition costs for proved and unproved properties are capitalized when incurred. Exploration costs, including geological and geophysical costs, the costs of carrying and retaining unproved properties and exploratory dry hole drilling costs, are expensed. Development costs, including the costs to drill and equip development wells and successful exploratory drilling costs to locate proved reserves are capitalized. | ||
Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves. The determination is based on a process which relies on interpretations of available geologic, geophysical, and engineering data. If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well. If a well is determined to be unsuccessful, the capitalized drilling costs will be charged to exploration expense in the period the determination is made. If an exploratory well requires a major capital expenditure before production can begin, the cost of drilling the exploratory well will continue to be carried as an asset pending determination of whether reserves have been found only as long as: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well if the required capital expenditure is made and (ii) drilling of an additional exploratory well is under way or firmly planned for the near future. If drilling in the area is not under way or firmly planned, or if the well has not found a commercially producible quantity of reserves, the exploratory well is assumed to be impaired and its costs are charged to exploration expense. | ||
Development costs of proved oil and gas properties, including estimated dismantlement, restoration and abandonment costs and acquisition costs, are depreciated and depleted on a field basis by the units-of-production method using proved developed and proved reserves, respectively. Properties related to gathering and pipeline systems and equipment are depreciated using the straight-line method based on estimated useful lives ranging from 10 to 25 years. Generally pipeline and transmission systems are depreciated over 12 to 25 years, gathering and compression equipment is depreciated over 10 years and storage equipment and facilities are depreciated over 10 to 16 years. Buildings are depreciated on a straight-line basis over 25 to 40 years. Certain other assets are depreciated on a straight-line basis over 3 to 10 years. | ||
Costs of retired, sold or abandoned properties that make up a part of an amortization base (partial field) are charged to accumulated depreciation, depletion and amortization if the units-of-production rate is not significantly affected. A gain or loss, if any, is recognized only when a group of proved properties (entire field) that make up the amortization base has been retired, abandoned or sold. | ||
The Company evaluates its proved oil and gas properties for impairment whenever events or changes in circumstances indicate an asset's carrying amount may not be recoverable. The Company compares expected undiscounted future cash flows to the net book value of the asset. If the future undiscounted expected cash flows, based on estimates of future natural gas and crude oil prices, operating costs and anticipated production from proved reserves and risk-adjusted probable and possible reserves, are lower than the net book value of the asset, the capitalized cost is reduced to fair value. Commodity pricing is estimated by using a combination of assumptions management uses in its budgeting and forecasting process as well as historical and current prices adjusted for geographical location and quality differentials, as well as other factors that management believes will impact realizable prices. Fair value is calculated by discounting the future cash flows. The discount factor used is based on rates utilized by market participants that are commensurate with the risks inherent in the development and production of the underlying natural gas and oil. | ||
Unproved oil and gas properties are assessed periodically for impairment on an aggregate basis through periodic updates to the Company's undeveloped acreage amortization based on past drilling and exploration experience, the Company's expectation of converting leases to held by production and average property lives. Average property lives are determined on a geographical basis and based on the estimated life of unproved property leasehold rights. During 2014, 2013 and 2012, amortization associated with the Company's unproved properties was $17.4 million, $53.6 million and $18.1 million, respectively, and is included in depreciation, depletion, and amortization in the Consolidated Statement of Operations. | ||
Asset Retirement Obligations | Asset Retirement Obligations | |
The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset. The asset retirement costs are depreciated using the units-of-production method. The majority of the asset retirement obligations recorded by the Company relate to the plugging and abandonment of oil and gas wells. However, liabilities are also recorded for meter stations, pipelines, processing plants and compressors. At December 31, 2014, there were no assets legally restricted for purposes of settling asset retirement obligations. | ||
Additional retirement obligations increase the liability associated with new oil and gas wells and other facilities as these obligations are incurred. Accretion expense is included in depreciation, depletion and amortization expense in the Consolidated Statement of Operations. | ||
Derivative and Hedging Activities | Derivative and Hedging Activities | |
The Company enters into derivative contracts, primarily options and swaps, to manage its exposure to price fluctuations on natural gas and oil production. All derivatives are recognized on the balance sheet and are measured at fair value. At the end of each quarterly period, these derivatives are marked-to-market. If the derivative does not qualify or is not designated as a cash flow hedge, changes in the fair value of the derivative are recognized currently in income. If the derivative qualifies and is designated as a cash flow hedge, changes in the fair value of the derivative are deferred in accumulated other comprehensive income to the extent the hedge is effective. | ||
The hedging relationship between the hedging instruments and hedged items must be highly effective in achieving the offset of changes in cash flows attributable to the hedged risk, both at the inception of the hedge and on an ongoing basis. The Company measures hedge effectiveness on a quarterly basis. Hedge accounting is discontinued prospectively if and when a hedging instrument becomes ineffective. Gains and losses deferred in accumulated other comprehensive income related to cash flow hedges that become ineffective remain unchanged until the related production occurs. If the Company determines that it is probable that a hedged forecasted transaction will not occur, deferred gains or losses on the related hedging instrument are recognized in income immediately. | ||
Gains and losses on cash flow hedges are included in natural gas and crude oil and condensate revenues. Gains and losses on derivatives which represent hedge ineffectiveness and gains and losses on derivatives not designated or does not qualify for hedge accounting are included in operating revenues in gain (loss) on derivative instruments. The resulting cash flows are reported as cash flows from operating activities. | ||
Through March 31, 2014, the Company elected to designate its commodity derivatives as cash flow hedges for accounting purposes. Effective April 1, 2014, the Company elected to discontinue hedge accounting for its commodity derivatives on a prospective basis. | ||
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 financial statements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. The Company is able to classify fair value balances based on the observability of these inputs. The authoritative guidance for fair value measurements establishes three levels of the fair value hierarchy, defined as follows: | ||
• | Level 1: Unadjusted, quoted prices for identical assets or liabilities in active markets. | |
• | Level 2: Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly for substantially the full term of the asset or liability. | |
• | Level 3: Significant, unobservable inputs for use when little or no market data exists, requiring a significant degree of judgment. | |
The hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. Depending on the particular asset or liability, input availability can vary depending on factors such as product type, longevity of a product in the market and other particular transaction conditions. In some cases, certain inputs used to measure fair value may be categorized into different levels of the fair value hierarchy. For disclosure purposes under the accounting guidance, the lowest level that contains significant inputs used in the valuation should be chosen. | ||
Revenue Recognition | Revenue Recognition | |
Natural gas and oil sales result from interests in oil and gas properties owned by the Company. Sales of natural gas and oil are recognized when the product is delivered and title transfers to the purchaser. Payment is generally received one to three months after the sale has occurred. | ||
Producer Gas Imbalances. The Company applies the sales method of accounting for natural gas revenue. Under this method, revenues are recognized based on the actual volume of natural gas sold to purchasers. Natural gas production operations may include joint owners who take more or less than the production volumes entitled to them on certain properties. Production volume is monitored to minimize these natural gas imbalances. 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. | ||
Brokered Natural Gas. Revenues and expenses related to brokering natural gas are reported gross as part of operating revenues and operating expenses in accordance with applicable accounting standards. The Company buys and sells natural gas utilizing separate purchase and sale transactions, typically with separate counterparties, whereby the Company and/or the counterparty takes title to the natural gas purchased or sold. | ||
Income Taxes | Income Taxes | |
The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the estimated future tax consequences attributable to the differences between the financial carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. | ||
The Company is required to make judgments, including estimating reserves for potential adverse outcomes regarding tax positions that the Company has taken. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return. The tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination by taxing authorities based on technical merits of the position. The amount of the tax benefit recognized is the largest amount of the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The effective tax rate and the tax basis of assets and liabilities reflect management's estimates of the ultimate outcome of various tax uncertainties. | ||
The Company recognizes accrued interest related to uncertain tax positions in interest expense and accrued penalties related to such positions in general and administrative expense in the Consolidated Statement of Operations. | ||
Stock-Based Compensation | Stock-Based Compensation | |
The Company accounts for stock-based compensation under the fair value method of accounting. Under the fair value method, compensation cost is measured at the grant date for equity-classified awards and remeasured each reporting period for liability-classified awards based on the fair value of an award and is recognized over the service period, which is generally the vesting period. To calculate fair value, the Company uses either a Monte Carlo or Black-Scholes valuation model depending on the specific provisions of the award. Stock-based compensation cost for all types of awards is included in general and administrative expense in the Consolidated Statement of Operations. | ||
The tax benefit for stock-based compensation is included as both a cash inflow from financing activities and a cash outflow from operating activities in the Consolidated Statement of Cash Flows. The Company recognizes a tax benefit only to the extent it reduces the Company's income taxes payable. | ||
Environmental Matters | Environmental Matters | |
Environmental expenditures are expensed or capitalized, as appropriate, depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations, and that do not have future economic benefit are expensed. Liabilities related to future costs are recorded on an undiscounted basis when environmental assessments and/or remediation activities are probable and the costs can be reasonably estimated. Any insurance recoveries are recorded as assets when received. | ||
Credit and Concentration Risk | Credit and Concentration Risk | |
Substantially all of the Company's accounts receivable result from the sale of natural gas and oil and joint interest billings to third parties in the oil and gas industry. This concentration of purchasers and joint interest owners may impact the Company's overall credit risk, either positively or negatively, in that these entities may be similarly affected by changes in economic or other conditions. The Company does not anticipate any material impact on its financial results due to non-performance by the third parties. | ||
During the years ended December 31, 2014, 2013 and 2012, two customers accounted for approximately 14% and 10%, four customers accounted for approximately 21%, 16%, 14% and 11% and three customers accounted for approximately 18%, 12% and 10% , respectively, of the Company's total sales. The Company does not believe that the loss of any of these customers would have a material adverse effect because alternative customers are readily available. | ||
Use of Estimates | Use of Estimates | |
In preparing financial statements, the Company follows accounting principles generally accepted in the United States. These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The most significant estimates pertain to proved natural gas and oil reserves and related cash flow estimates which are used to compute depreciation, depletion and amortization and impairments of proved oil and gas properties. Other significant estimates include natural gas and oil revenues and expenses, fair value of derivative instruments, estimates of expenses related to legal, environmental and other contingencies, asset retirement obligations, postretirement obligations, stock-based compensation and deferred income taxes. Actual results could differ from those estimates. | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The guidance is effective for interim and annual periods beginning on or after December 15, 2014. The Company does not expect the adoption of this guidance to have a material impact on its financial position, results of operations or cash flows. | ||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective beginning in fiscal year 2017 and can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the effect that adopting this guidance will have on its financial position, results of operations or cash flows. | ||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern, as a new Sub-topic, Accounting Standards Codification Sub-topic 205.40. The new going concern standard codifies in generally accepted accounting principles (GAAP) management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This ASU is effective for interim and annual periods beginning on or after December 15, 2016 and early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its financial position or results of operations. |
Properties_and_Equipment_Table
Properties and Equipment (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Components of net properties and equipment | Properties and equipment are comprised of the following: | |||||||||||
December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Proved oil and gas properties | $ | 7,984,979 | $ | 6,362,570 | ||||||||
Unproved oil and gas properties | 492,208 | 375,428 | ||||||||||
Gathering and pipeline systems | 241,272 | 239,958 | ||||||||||
Land, building and other equipment | 109,758 | 94,243 | ||||||||||
8,828,217 | 7,072,199 | |||||||||||
Accumulated depreciation, depletion and amortization | (3,902,506 | ) | (2,525,972 | ) | ||||||||
$ | 4,925,711 | $ | 4,546,227 | |||||||||
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) | 2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | — | $ | 10,390 | $ | 5,328 | ||||||
Additions to capitalized exploratory well costs pending the determination of proved reserves | 10,557 | — | 10,390 | |||||||||
Reclassifications to wells, facilities, and equipment based on the determination of proved reserves | — | (10,198 | ) | — | ||||||||
Capitalized exploratory well costs charged to expense | — | (192 | ) | (5,328 | ) | |||||||
Balance at end of period | $ | 10,557 | $ | — | $ | 10,390 | ||||||
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) | 2014 | 2013 | 2012 | |||||||||
Capitalized exploratory well costs that have been capitalized for a period of one year or less | $ | 10,557 | $ | — | $ | 10,390 | ||||||
Capitalized exploratory well costs that have been capitalized for a period greater than one year | — | — | — | |||||||||
$ | 10,557 | $ | — | $ | 10,390 | |||||||
Debt_and_Credit_Agreements_Tab
Debt and Credit Agreements (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Company's Long-Term Debt and credit agreements Components | The Company's debt and credit agreements consisted of the following: | ||||||||||||||
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% fixed rate notes | 67,000 | 67,000 | |||||||||||||
5.58% weighted-average fixed rate notes | 175,000 | 175,000 | |||||||||||||
3.65% weighted-average fixed rate notes | 925,000 | — | |||||||||||||
Revolving credit facility | 140,000 | 460,000 | |||||||||||||
$ | 1,752,000 | $ | 1,147,000 | ||||||||||||
7.33% weighted-average fixed rate notes | |||||||||||||||
Debt | |||||||||||||||
Schedule of long-term debt instruments by issued tranche | |||||||||||||||
Principal | Term | Maturity | Coupon | ||||||||||||
Date | |||||||||||||||
Tranche 1 | $ | 75,000,000 | 10 years | Jul-11 | 7.26 | % | |||||||||
Tranche 2 | $ | 75,000,000 | 12 years | Jul-13 | 7.36 | % | |||||||||
Tranche 3 | $ | 20,000,000 | 15 years | Jul-16 | 7.46 | % | |||||||||
6.51% weighted-average fixed rate notes | |||||||||||||||
Debt | |||||||||||||||
Schedule of long-term debt instruments by issued tranche | |||||||||||||||
Principal | Term | Maturity | Coupon | ||||||||||||
Date | |||||||||||||||
Tranche 1 | $ | 245,000,000 | 10 years | Jul-18 | 6.44 | % | |||||||||
Tranche 2 | $ | 100,000,000 | 12 years | Jul-20 | 6.54 | % | |||||||||
Tranche 3 | $ | 80,000,000 | 15 years | Jul-23 | 6.69 | % | |||||||||
5.58% Weighted Average Fixed Rate Notes | |||||||||||||||
Debt | |||||||||||||||
Schedule of long-term debt instruments by issued tranche | |||||||||||||||
Principal | Term | Maturity | Coupon | ||||||||||||
Date | |||||||||||||||
Tranche 1 | $ | 88,000,000 | 10 years | Jan-21 | 5.42 | % | |||||||||
Tranche 2 | $ | 25,000,000 | 12 years | Jan-23 | 5.59 | % | |||||||||
Tranche 3 | $ | 62,000,000 | 15 years | Jan-26 | 5.8 | % | |||||||||
3.65% weighted-average fixed rate notes | |||||||||||||||
Debt | |||||||||||||||
Schedule of long-term debt instruments by issued tranche | The notes have bullet maturities and were issued in three separate tranches as follows: | ||||||||||||||
Principal | Term | Maturity | Coupon | ||||||||||||
Date | |||||||||||||||
Tranche 1 | $ | 100,000,000 | 7 years | Sep-21 | 3.24 | % | |||||||||
Tranche 2 | $ | 575,000,000 | 10 years | Sep-24 | 3.67 | % | |||||||||
Tranche 3 | $ | 250,000,000 | 12 years | Sep-26 | 3.77 | % | |||||||||
Revolving credit facility | |||||||||||||||
Debt | |||||||||||||||
Schedule of changes in the basis spread on LIBOR and Prime rates for changes in the percentage of total indebtedness to the borrowing base | |||||||||||||||
Debt Percentage | |||||||||||||||
<25% | 25% <50% | 50% <75% | 75% <90% | 90% | |||||||||||
Eurodollar loans | 1.5 | % | 1.75 | % | 2 | % | 2.25 | % | 2.5 | % | |||||
ABR loans | 0.5 | % | 0.75 | % | 1 | % | 1.25 | % | 1.5 | % |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||
Outstanding Commodity Derivatives Instruments | As of December 31, 2014, the Company had the following outstanding commodity derivatives instruments: | ||||||||||||||||||||||
Collars | Swaps | ||||||||||||||||||||||
Floor | Ceiling | ||||||||||||||||||||||
Type of Contract | Volume | Contract Period | Range | Weighted- | Range | Weighted- | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Natural gas | 70.9 | Bcf | Jan. 2015 - Dec. 2015 | $3.86 - $3.91 | $ | 3.87 | $4.27 - $4.43 | $ | 4.35 | ||||||||||||||
Natural gas | 70.9 | Bcf | Jan. 2015 - Dec. 2015 | $ | 3.92 | ||||||||||||||||||
Natural gas | 5.2 | Bcf | Jan. 2015 - Mar. 2015 | $ | 4.62 | ||||||||||||||||||
Natural gas | 10.4 | Bcf | Apr. 2015 - Oct. 2015 | $ | 3.86 | ||||||||||||||||||
In the above table, natural gas prices are stated per Mcf. | |||||||||||||||||||||||
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 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Derivatives Designated as Hedges | |||||||||||||||||||||||
Commodity contracts | Derivative instruments (current assets) | $ | — | $ | 3,019 | $ | — | $ | — | ||||||||||||||
Commodity contracts | Derivative instruments (current liabilities) | — | — | — | 13,912 | ||||||||||||||||||
Derivatives Not Designated as Hedges | |||||||||||||||||||||||
Commodity contracts | Derivative instruments (current assets) | 137,603 | — | — | — | ||||||||||||||||||
$ | 137,603 | $ | 3,019 | $ | — | $ | 13,912 | ||||||||||||||||
Schedule of Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||||
Gross amounts of recognized assets | $ | 137,603 | $ | 13,792 | |||||||||||||||||||
Gross amounts offset in the statement of financial position | — | (10,773 | ) | ||||||||||||||||||||
Net amounts of assets presented in the statement of financial position | 137,603 | 3,019 | |||||||||||||||||||||
Gross amounts of financial instruments not offset in the statement of financial position | 2,338 | 373 | |||||||||||||||||||||
Net amount | $ | 139,941 | $ | 3,392 | |||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||||
Gross amounts of recognized liabilities | $ | — | $ | 24,685 | |||||||||||||||||||
Gross amounts offset in the statement of financial position | — | (10,773 | ) | ||||||||||||||||||||
Net amounts of liabilities presented in the statement of financial position | — | 13,912 | |||||||||||||||||||||
Gross amounts of financial instruments not offset in the statement of financial position | — | — | |||||||||||||||||||||
Net amount | $ | — | $ | 13,912 | |||||||||||||||||||
Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Loss) | The amount of gain (loss) recognized in accumulated other comprehensive income (loss) on derivatives (effective portion) is as follows: | ||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Commodity contracts | $ | (133,310 | ) | $ | (4,523 | ) | $ | 88,705 | |||||||||||||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) | The amount of gain (loss) recognized in accumulated other comprehensive income (loss) on derivatives (effective portion) is as follows: | ||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Commodity contracts | $ | (133,310 | ) | $ | (4,523 | ) | $ | 88,705 | |||||||||||||||
The amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) is as follows: | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
(In thousands) | 2014(1) | 2013 | 2012 | ||||||||||||||||||||
Natural gas revenues | $ | (143,577 | ) | $ | 52,733 | $ | 225,108 | ||||||||||||||||
Crude oil and condensate revenues | (626 | ) | 4,269 | 11,218 | |||||||||||||||||||
$ | (144,203 | ) | $ | 57,002 | $ | 236,326 | |||||||||||||||||
(1) The Company ceased hedge accounting effective April 1, 2014. As a result, a loss of approximately $73.4 million related to amounts previously frozen in accumulated other comprehensive income (loss) were reclassified into income during 2014. | |||||||||||||||||||||||
Effect of Derivative Instruments on the Consolidated Statement of Operations | The amount of gain (loss) recognized in the Consolidated Statement of Operations on derivative instruments is as follows: | ||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Derivatives Designated as Hedges | |||||||||||||||||||||||
Realized | |||||||||||||||||||||||
Natural gas | $ | (70,557 | ) | $ | 52,733 | $ | 225,108 | ||||||||||||||||
Crude oil and condensate | (218 | ) | 4,269 | 11,218 | |||||||||||||||||||
$ | (70,775 | ) | $ | 57,002 | $ | 236,326 | |||||||||||||||||
Derivatives Not Designated as Hedges | |||||||||||||||||||||||
Realized | |||||||||||||||||||||||
Natural gas(1) | $ | (73,020 | ) | $ | — | $ | — | ||||||||||||||||
Crude oil and condensate(1) | (408 | ) | — | — | |||||||||||||||||||
Gain (loss) on derivative instruments | 81,716 | — | — | ||||||||||||||||||||
Unrealized | |||||||||||||||||||||||
Gain (loss) on derivative instruments | 137,603 | — | (494 | ) | |||||||||||||||||||
$ | 145,891 | $ | — | $ | (494 | ) | |||||||||||||||||
$ | 75,116 | $ | 57,002 | $ | 235,832 | ||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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 | Significant Other | Significant | Balance as of | ||||||||||||
Active Markets for | Observable Inputs | Unobservable | December 31, | |||||||||||||
Identical Assets | (Level 2) | Inputs | 2014 | |||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
Assets | ||||||||||||||||
Deferred compensation plan | $ | 13,115 | $ | — | $ | — | $ | 13,115 | ||||||||
Derivative contracts | — | 51,645 | 85,958 | 137,603 | ||||||||||||
Total assets | $ | 13,115 | $ | 51,645 | $ | 85,958 | $ | 150,718 | ||||||||
Liabilities | ||||||||||||||||
Deferred compensation plan | $ | 28,932 | $ | — | $ | — | $ | 28,932 | ||||||||
Derivative contracts | — | — | — | — | ||||||||||||
Total liabilities | $ | 28,932 | $ | — | $ | — | $ | 28,932 | ||||||||
(In thousands) | Quoted Prices in | Significant Other | Significant | Balance as of | ||||||||||||
Active Markets for | Observable Inputs | Unobservable | December 31, | |||||||||||||
Identical Assets | (Level 2) | Inputs | 2013 | |||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
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 | 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) | 2014 | 2013 | 2012 | |||||||||||||
Balance at beginning of period | $ | (3,910 | ) | $ | 41,159 | $ | 195,127 | |||||||||
Total gains (losses) (realized or unrealized): | ||||||||||||||||
Included in earnings | 35,067 | 52,733 | 224,614 | |||||||||||||
Included in other comprehensive income | 3,755 | (45,069 | ) | (157,478 | ) | |||||||||||
Settlements | 51,046 | (52,733 | ) | (221,489 | ) | |||||||||||
Transfers in and/or out of level 3 | — | — | 385 | |||||||||||||
Balance at end of period | $ | 85,958 | $ | (3,910 | ) | $ | 41,159 | |||||||||
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period | $ | 85,958 | $ | — | $ | — | ||||||||||
Carrying amounts and fair values of long-term debt | The carrying amounts and fair values of debt are as follows: | |||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
(In thousands) | Carrying | Estimated | Carrying | Estimated | ||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
Debt | $ | 1,752,000 | $ | 1,850,867 | $ | 1,147,000 | $ | 1,224,273 | ||||||||
Asset_Retirement_Obligation_Ta
Asset Retirement Obligation (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ||||
Asset Retirement Obligation | Activity related to the Company's asset retirement obligations is as follows: | |||
(In thousands) | Year Ended | |||
December 31, 2014 | ||||
Balance at beginning of period | $ | 75,853 | ||
Liabilities incurred | 7,220 | |||
Liabilities settled and divested | (1,474 | ) | ||
Liabilities acquired | 1,206 | |||
Accretion expense | 5,110 | |||
Change in estimate | 38,740 | |||
Balance at end of period | $ | 126,655 | ||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Future minimum obligations under transportation and gathering agreements | As of December 31, 2014, the Company's future minimum obligations under transportation and gathering agreements are as follows: | |||
(In thousands) | ||||
2015 | $ | 130,411 | ||
2016 | 161,675 | |||
2017 | 163,573 | |||
2018 | 138,917 | |||
2019 | 129,245 | |||
Thereafter | 1,226,791 | |||
$ | 1,950,612 | |||
Future minimum rental commitments under non-cancelable leases | Future minimum rental commitments under non-cancelable leases in effect at December 31, 2014 are as follows: | |||
(In thousands) | ||||
2015 | $ | 5,818 | ||
2016 | 3,469 | |||
2017 | 2,873 | |||
2018 | 2,312 | |||
2019 | 1,877 | |||
Thereafter | 9,464 | |||
$ | 25,813 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Summary of income tax expense | Income tax expense is summarized as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Current | ||||||||||||
Federal | $ | 44,887 | $ | 56,544 | $ | 24,618 | ||||||
State | (4,387 | ) | 10,841 | 563 | ||||||||
40,500 | 67,385 | 25,181 | ||||||||||
Deferred | ||||||||||||
Federal | (32,375 | ) | 111,147 | 57,704 | ||||||||
State | (80,192 | ) | 27,233 | 23,225 | ||||||||
(112,567 | ) | 138,380 | 80,929 | |||||||||
Income tax (benefit) expense | $ | (72,067 | ) | $ | 205,765 | $ | 106,110 | |||||
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 was different than the amounts computed by applying the statutory federal income tax rate as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
Computed "expected" federal income tax | $ | 11,341 | $ | 169,938 | $ | 83,244 | ||||||
Deferred tax adjustment related to change in overall state tax rate | (86,956 | ) | 15,220 | 13,596 | ||||||||
State income tax, net of federal income tax benefit | 903 | 17,513 | 9,609 | |||||||||
Valuation allowance | 3,977 | — | 262 | |||||||||
Uncertain tax positions | (1,974 | ) | 2,400 | — | ||||||||
Other, net | 642 | 694 | (601 | ) | ||||||||
Income tax expense | $ | (72,067 | ) | $ | 205,765 | $ | 106,110 | |||||
Schedule of deferred tax liabilities and deferred tax assets | deferred tax liabilities and deferred tax assets were as follows: | |||||||||||
December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Deferred Tax Assets | ||||||||||||
Net operating loss carryforward | $ | 141,961 | $ | 78,182 | ||||||||
Alternative minimum tax carryforward | 227,719 | 182,212 | ||||||||||
Foreign tax credit | 4,525 | 4,822 | ||||||||||
Derivative instruments | — | 3,946 | ||||||||||
Incentive compensation | 21,961 | 36,450 | ||||||||||
Deferred compensation | 9,531 | 11,988 | ||||||||||
Post-retirement benefits | 13,689 | 13,965 | ||||||||||
Other | 747 | 3,619 | ||||||||||
Total | 420,133 | 335,184 | ||||||||||
Deferred Tax Liabilities | ||||||||||||
Properties and equipment | 1,248,532 | 1,321,241 | ||||||||||
Derivative instruments | 50,750 | — | ||||||||||
Total | 1,299,282 | 1,321,241 | ||||||||||
Net deferred tax liabilities | $ | 879,149 | $ | 986,057 | ||||||||
Schedule of reconciliation of the beginning and ending amounts of unrecognized tax benefits | A reconciliation of unrecognized tax benefits is as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Balance at beginning of year | $ | 3,700 | $ | — | $ | — | ||||||
Additions based on tax provisions related to the current year | — | 3,700 | — | |||||||||
Additions for tax positions of prior years | — | — | — | |||||||||
Reductions for tax positions of prior years | (3,037 | ) | — | — | ||||||||
Settlements | — | — | — | |||||||||
Balance at end of year | $ | 663 | $ | 3,700 | $ | — | ||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) (Postretirement Benefits Other than Pensions) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Postretirement Benefits Other than Pensions | ||||||||||||
Pension and Other Postretirement Benefits | ||||||||||||
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) | 2014 | 2013 | 2012 | |||||||||
Change in Benefit Obligation | ||||||||||||
Benefit obligation at beginning of year | $ | 34,995 | $ | 40,168 | $ | 39,969 | ||||||
Service cost | 1,295 | 1,739 | 1,513 | |||||||||
Interest cost | 1,343 | 1,500 | 1,537 | |||||||||
Actuarial (gain) loss | 373 | (7,618 | ) | (2,073 | ) | |||||||
Benefits paid | (930 | ) | (794 | ) | (778 | ) | ||||||
Benefit obligation at end of year | $ | 37,076 | $ | 34,995 | $ | 40,168 | ||||||
Change in Plan Assets | ||||||||||||
Fair value of plan assets at end of year | — | — | — | |||||||||
Funded status at end of year | $ | (37,076 | ) | $ | (34,995 | ) | $ | (40,168 | ) | |||
Schedule of amounts recognized in the balance sheet | Amounts recognized in the balance sheet consist of the following: | |||||||||||
December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Current liabilities | $ | 1,249 | $ | 1,441 | $ | 1,304 | ||||||
Long-term liabilities | 35,827 | 33,554 | 38,864 | |||||||||
$ | 37,076 | $ | 34,995 | $ | 40,168 | |||||||
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) | 2014 | 2013 | 2012 | |||||||||
Net actuarial loss | $ | 3,408 | $ | 3,010 | $ | 11,269 | ||||||
$ | 3,408 | $ | 3,010 | $ | 11,269 | |||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Components of Net Periodic Postretirement Benefit Cost | ||||||||||||
Service cost | $ | 1,295 | $ | 1,739 | $ | 1,513 | ||||||
Interest cost | 1,343 | 1,500 | 1,537 | |||||||||
Amortization of net (gain) loss | (26 | ) | 641 | 824 | ||||||||
Net periodic postretirement cost | $ | 2,612 | $ | 3,880 | $ | 3,874 | ||||||
Other Changes in Benefit Obligations Recognized in Other Comprehensive Income (Loss) | ||||||||||||
Net (gain) loss | $ | 373 | $ | (7,618 | ) | $ | (2,073 | ) | ||||
Amortization of net (gain) loss | 26 | (641 | ) | (824 | ) | |||||||
Total recognized in other comprehensive income (loss) | 399 | (8,259 | ) | (2,897 | ) | |||||||
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ | 3,011 | $ | (4,379 | ) | $ | 977 | |||||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Discount rate(1) | 4 | % | 4.75 | % | 4 | % | ||||||
Health care cost trend rate for medical benefits assumed for next year | 6 | % | 6.5 | % | 7 | % | ||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.5 | % | 4.5 | % | 5 | % | ||||||
Year that the rate reaches the ultimate trend rate | 2018 | 2018 | 2015 | |||||||||
_______________________________________________________________________________ | ||||||||||||
-1 | Represents the year end rates used to determine the projected benefit obligation. To compute postretirement cost in 2014, 2013 and 2012, respectively, the beginning of year discount rates of 4.75%, 4.00% 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 | $ | 678 | $ | (308 | ) | |||||||
Effect on postretirement benefit obligation | 6,098 | (4,893 | ) | |||||||||
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) | ||||||||||||
2015 | 1,274 | |||||||||||
2016 | 1,333 | |||||||||||
2017 | 1,477 | |||||||||||
2018 | 1,623 | |||||||||||
2019 | 1,820 | |||||||||||
Years 2020 - 2024 | 11,329 | |||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SEIP IV | |||||||||||||||||||||
Stock-Based Compensation arrangements | |||||||||||||||||||||
Schedule of Value per Share and Assumptions Used | The following assumptions were used to determine the fair value of the SEIP III and SEIP IV liabilities at the end of the respective periods: | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Valuation Assumptions | |||||||||||||||||||||
Stock price volatility | 33.4 | % | 38 | % | 39.5 | % | |||||||||||||||
Risk free rate of return | 1 | % | 1.1 | % | 0.5 | % | |||||||||||||||
Annual salary increase rate | 4 | % | 4 | % | 4 | % | |||||||||||||||
Annual turnover rate | 4.6 | % | 4.6 | % | 6.1 | % | |||||||||||||||
Restricted Stock Awards | |||||||||||||||||||||
Stock-Based Compensation arrangements | |||||||||||||||||||||
Schedule of Value per Share and Assumptions Used | The following table is a summary of restricted stock award activity: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average Grant | Average Grant | Average Grant | |||||||||||||||||||
Date Fair Value | Date Fair Value | Date Fair Value | |||||||||||||||||||
per Share | per Share | per Share | |||||||||||||||||||
Outstanding at beginning of period | 27,806 | $ | 20.53 | 71,508 | $ | 11.82 | 476,388 | $ | 9.18 | ||||||||||||
Granted | 47,500 | 34.76 | 7,200 | 35.7 | 13,100 | 18.42 | |||||||||||||||
Vested | (17,437 | ) | 15.84 | (50,902 | ) | 10.44 | (402,800 | ) | 9.03 | ||||||||||||
Forfeited | (8,000 | ) | 35 | — | — | (15,180 | ) | 8.8 | |||||||||||||
Outstanding at end of period(1)(2) | 49,869 | $ | 33.4 | 27,806 | $ | 20.53 | 71,508 | $ | 11.82 | ||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||
-1 | As of December 31, 2014, the aggregate intrinsic value was $1.5 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2014 by the number of non-vested restricted stock awards outstanding. | ||||||||||||||||||||
-2 | As of December 31, 2014, the weighted average remaining contractual term of non-vested restricted stock awards outstanding was 1.9 years. | ||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||
Stock-Based Compensation arrangements | |||||||||||||||||||||
Schedule of Restricted Stock Activity | The following table is a summary of restricted stock unit activity: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average Grant | Average Grant | Average Grant | |||||||||||||||||||
Date Fair Value | Date Fair Value | Date Fair Value | |||||||||||||||||||
per Share | per Share | per Share | |||||||||||||||||||
Outstanding at beginning of period | 566,321 | $ | 10.75 | 515,468 | $ | 9.1 | 687,308 | $ | 7.88 | ||||||||||||
Granted and fully vested | 37,893 | 38.28 | 50,853 | 27.53 | 76,608 | 18.28 | |||||||||||||||
Issued | — | — | — | — | (248,448 | ) | 8.56 | ||||||||||||||
Forfeited | — | — | — | — | — | — | |||||||||||||||
Outstanding at end of period(1)(2) | 604,214 | $ | 12.48 | 566,321 | $ | 10.75 | 515,468 | $ | 9.1 | ||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||
-1 | As of December 31, 2014, the aggregate intrinsic value was $17.9 million and was calculated by multiplying the closing market price of the Company's stock on December 31, 2014 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. | ||||||||||||||||||||
Stock Appreciation Rights | |||||||||||||||||||||
Stock-Based Compensation arrangements | |||||||||||||||||||||
Schedule of Value per Share and Assumptions Used | The assumptions used in the Black-Scholes calculation on the date of grant for SARs are as follows: | ||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Weighted-average value per SAR granted during the period | $ | 8.16 | |||||||||||||||||||
Assumptions | |||||||||||||||||||||
Stock price volatility | 55.3 | % | |||||||||||||||||||
Risk free rate of return | 0.9 | % | |||||||||||||||||||
Expected dividend yield | 0.3 | % | |||||||||||||||||||
Expected term (in years) | 5 | ||||||||||||||||||||
Summary of SAR activity | The following table is a summary of SAR activity: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
Outstanding at beginning of period | 667,764 | $ | 12.63 | 1,722,444 | $ | 9.75 | 2,576,260 | $ | 8.02 | ||||||||||||
Granted | — | — | — | — | 240,884 | 17.59 | |||||||||||||||
Exercised | — | — | (1,054,680 | ) | 7.92 | (1,094,700 | ) | 7.42 | |||||||||||||
Forfeited or expired | — | — | — | — | — | — | |||||||||||||||
Outstanding at end of period(1) | 667,764 | $ | 12.63 | 667,764 | $ | 12.63 | 1,722,444 | $ | 9.75 | ||||||||||||
Exercisable at end of period(2) | 590,960 | $ | 11.98 | 386,582 | $ | 11.33 | 1,145,972 | $ | 7.97 | ||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||
-1 | The intrinsic value of a SAR is the amount which the current market value of the underlying stock exceeds the exercise price of the SAR. As of December 31, 2014, the aggregate intrinsic value and weighted-average remaining contractual term of SARs outstanding was $11.3 million and 3.3 years, respectively. | ||||||||||||||||||||
-2 | As of December 31, 2014, the aggregate intrinsic value and weighted-average remaining contractual term of SARs exercisable was $10.4 million and 3.2 years, respectively. | ||||||||||||||||||||
Employee Performance Share Awards | |||||||||||||||||||||
Stock-Based Compensation arrangements | |||||||||||||||||||||
Schedule of Performance Share Awards Activity | The following table is a summary of activity for Employee Performance Share Awards: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average Grant | Average Grant | Average Grant | |||||||||||||||||||
Date Fair Value | Date Fair Value | Date Fair Value | |||||||||||||||||||
per Share | per Share | per Share | |||||||||||||||||||
Outstanding at beginning of period | 1,657,980 | $ | 16.25 | 1,919,640 | $ | 12.27 | 2,627,900 | $ | 8.12 | ||||||||||||
Granted | 241,130 | 39.43 | 379,540 | 26.62 | 567,360 | 17.59 | |||||||||||||||
Issued and fully vested | (751,780 | ) | 10.19 | (610,960 | ) | 10.13 | (1,189,920 | ) | 5.66 | ||||||||||||
Forfeited | (58,370 | ) | 23.57 | (30,240 | ) | 17.06 | (85,700 | ) | 12.11 | ||||||||||||
Outstanding at end of period | 1,088,960 | $ | 25.18 | 1,657,980 | $ | 16.25 | 1,919,640 | $ | 12.27 | ||||||||||||
Hybrid Performance Share Awards | |||||||||||||||||||||
Stock-Based Compensation arrangements | |||||||||||||||||||||
Schedule of Performance Share Awards Activity | The following table is a summary of activity for the Hybrid Performance Share Awards: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average Grant | Average Grant | Average Grant | |||||||||||||||||||
Date Fair Value | Date Fair Value | Date Fair Value | |||||||||||||||||||
per Share | per Share | per Share | |||||||||||||||||||
Outstanding at beginning of period | 450,212 | $ | 18.96 | 592,162 | $ | 13.11 | 759,328 | $ | 9.16 | ||||||||||||
Granted | 123,257 | 39.43 | 169,980 | 26.62 | 234,922 | 17.59 | |||||||||||||||
Issued and fully vested | (244,408 | ) | 15.41 | (311,930 | ) | 12.03 | (402,088 | ) | 8.27 | ||||||||||||
Forfeited | — | — | — | — | — | — | |||||||||||||||
Outstanding at end of period | 329,061 | $ | 29.27 | 450,212 | $ | 18.96 | 592,162 | $ | 13.11 | ||||||||||||
TSR Performance Share Awards | |||||||||||||||||||||
Stock-Based Compensation arrangements | |||||||||||||||||||||
Schedule of Performance Share Awards Activity | The following table is a summary of activity for the TSR Performance Share Awards: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average Grant | Average Grant | Average Grant | |||||||||||||||||||
Date Fair Value | Date Fair Value | Date Fair Value | |||||||||||||||||||
per Share(1) | per Share(1) | per Share(1) | |||||||||||||||||||
Outstanding at beginning of period | 860,686 | $ | 14.06 | 605,706 | $ | 10.27 | 1,495,904 | $ | 6.07 | ||||||||||||
Granted | 184,885 | 32.04 | 254,980 | 23.06 | 234,922 | 14.16 | |||||||||||||||
Issued and fully vested | (370,784 | ) | 7.81 | — | — | (1,125,120 | ) | 5.49 | |||||||||||||
Forfeited | — | — | — | — | — | — | |||||||||||||||
Outstanding at end of period | 674,787 | $ | 22.42 | 860,686 | $ | 14.06 | 605,706 | $ | 10.27 | ||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||
(1) The grant date fair value figures in this table represent the fair value of the equity component of the performance | |||||||||||||||||||||
share awards. | |||||||||||||||||||||
TSR Performance Share Awards | Equity Component | |||||||||||||||||||||
Stock-Based Compensation arrangements | |||||||||||||||||||||
Schedule of Value per Share and Assumptions Used | 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, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fair value per performance share award granted during the period | $ | 32.04 | $ | 23.06 | $ | 14.16 | |||||||||||||||
Assumptions | |||||||||||||||||||||
Stock price volatility | 41.3 | % | 43.8 | % | 46.7 | % | |||||||||||||||
Risk free rate of return | 0.7 | % | 0.4 | % | 0.4 | % | |||||||||||||||
Expected dividend yield | 0.2 | % | 0.2 | % | 0.2 | % | |||||||||||||||
TSR Performance Share Awards | Liability Component | |||||||||||||||||||||
Stock-Based Compensation arrangements | |||||||||||||||||||||
Schedule of Value per Share and Assumptions Used | 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, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fair value per performance share award at the end of the period | $12.88 - $29.72 | $23.96 - $38.61 | $19.11 - $24.76 | ||||||||||||||||||
Assumptions | |||||||||||||||||||||
Stock price volatility | 29.1% - 29.7% | 30.2% - 35.9% | 41.1% - 45.7% | ||||||||||||||||||
Risk free rate of return | 0.3% - 0.7% | 0.1% - 0.4% | 0.2% - 0.3% | ||||||||||||||||||
Expected dividend yield | 0.30% | 0.20% | 0.20% |
Earnings_per_Common_Share_Tabl
Earnings per Common Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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: | ||||||||
December 31, | |||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||
Weighted-average shares—basic | 415,840 | 420,188 | 419,075 | ||||||
Dilution effect of stock appreciation rights and stock awards at end of period | 1,761 | 2,187 | 2,912 | ||||||
Weighted-average shares—diluted | 417,601 | 422,375 | 421,987 | ||||||
Weighted-average shares excluded from diluted earnings per share due to the anti-dilutive effect | 20 | 5 | 85 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive (Loss) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Equity [Abstract] | ||||||||||||||
Changes in accumulated other comprehensive income (loss) by component, net of tax | Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows: | |||||||||||||
(In thousands) | Net Gains | Defined Benefit | Total | |||||||||||
(Losses) on | Pension and | |||||||||||||
Cash Flow | Postretirement | |||||||||||||
Hedges | Benefits | |||||||||||||
Balance at December 31, 2011 | $ | 121,358 | $ | (16,811 | ) | $ | 104,547 | |||||||
Other comprehensive income (loss) before reclassifications | 53,815 | 1,258 | 55,073 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (144,456 | ) | 8,716 | (135,740 | ) | |||||||||
Net current-period other comprehensive income (loss) | $ | (90,641 | ) | $ | 9,974 | $ | (80,667 | ) | ||||||
Balance at December 31, 2012 | $ | 30,717 | $ | (6,837 | ) | $ | 23,880 | |||||||
Other comprehensive income (loss) | (2,720 | ) | 4,641 | 1,921 | ||||||||||
before reclassifications | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (34,548 | ) | 386 | (34,162 | ) | |||||||||
Net current-period other comprehensive income (loss) | (37,268 | ) | 5,027 | (32,241 | ) | |||||||||
Balance at December 31, 2013 | $ | (6,551 | ) | $ | (1,810 | ) | $ | (8,361 | ) | |||||
Other comprehensive income (loss) | (80,175 | ) | (325 | ) | (80,500 | ) | ||||||||
before reclassifications | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 86,726 | (16 | ) | 86,710 | ||||||||||
Net current-period other comprehensive income (loss) | 6,551 | (341 | ) | 6,210 | ||||||||||
Balance at December 31, 2014 | $ | — | $ | (2,151 | ) | $ | (2,151 | ) | ||||||
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 Condensed | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | Consolidated Statement of Operations | ||||||||||
Net Gains (Losses) on Cash Flow Hedges | ||||||||||||||
Commodity contracts | $ | (143,577 | ) | $ | 52,733 | $ | 225,108 | Natural gas revenues | ||||||
Commodity contracts | (626 | ) | 4,269 | 11,218 | Crude oil and condensate revenues | |||||||||
Defined Benefit Pension and Postretirement Benefits | ||||||||||||||
Amortization of prior service cost | — | — | (221 | ) | General and administrative expense | |||||||||
Amortization of net (gain) loss | 26 | (641 | ) | (13,906 | ) | General and administrative expense | ||||||||
(144,177 | ) | 56,361 | 222,199 | Total before tax | ||||||||||
57,467 | (22,199 | ) | (86,459 | ) | Tax expense | |||||||||
Total reclassifications for the period | $ | (86,710 | ) | $ | 34,162 | $ | 135,740 | Net of tax | ||||||
Additional_Balance_Sheet_Infor1
Additional Balance Sheet Information (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||
Additional Balance Sheet Information | Certain balance sheet amounts are comprised of the following: | |||||||
December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Accounts receivable, net | ||||||||
Trade accounts | $ | 227,835 | $ | 215,361 | ||||
Joint interest accounts | 2,245 | 7,261 | ||||||
Income taxes receivable | 3,612 | 922 | ||||||
Other accounts | 6,515 | 746 | ||||||
240,207 | 224,290 | |||||||
Allowance for doubtful accounts | (1,198 | ) | (1,814 | ) | ||||
$ | 239,009 | $ | 222,476 | |||||
Inventories | ||||||||
Natural gas in storage | $ | 3,281 | $ | 9,056 | ||||
Tubular goods and well equipment | 10,675 | 8,396 | ||||||
Other accounts | 70 | 16 | ||||||
$ | 14,026 | $ | 17,468 | |||||
Other current assets | ||||||||
Prepaid balances and other | 1,855 | 2,587 | ||||||
$ | 1,855 | $ | 2,587 | |||||
Other assets | ||||||||
Deferred compensation plan | $ | 13,115 | $ | 12,507 | ||||
Debt issuance cost | 17,349 | 16,476 | ||||||
Other accounts | 65 | 79 | ||||||
$ | 30,529 | $ | 29,062 | |||||
Accounts payable | ||||||||
Trade accounts | 54,949 | 26,023 | ||||||
Natural gas purchases | 2,407 | 2,052 | ||||||
Royalty and other owners | 97,298 | 79,150 | ||||||
Accrued capital costs | 222,426 | 146,899 | ||||||
Taxes other than income | 16,806 | 13,677 | ||||||
Drilling advances | 88 | 14,093 | ||||||
Other accounts | 6,102 | 6,907 | ||||||
$ | 400,076 | $ | 288,801 | |||||
Accrued liabilities | ||||||||
Employee benefits | $ | 22,815 | $ | 43,599 | ||||
Taxes other than income | 7,128 | 6,894 | ||||||
Interest payable | 30,677 | 20,211 | ||||||
Other accounts | 3,049 | 2,897 | ||||||
$ | 63,669 | $ | 73,601 | |||||
Other liabilities | ||||||||
Deferred compensation plan | $ | 28,932 | $ | 33,211 | ||||
Other accounts | 10,675 | 13,043 | ||||||
$ | 39,607 | $ | 46,254 | |||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||
Summary of cash paid for interest and income taxes | Cash paid for interest and income taxes are as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Interest | $ | 58,487 | $ | 63,279 | $ | 64,970 | ||||||
Income taxes | 77,029 | 35,281 | 22,501 | |||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | Institution | ||
Institution | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of operating segments | 1 | ||
Cash and Cash Equivalents | |||
Number of financial institutions | 1 | 2 | |
Properties and Equipment | |||
Amortization of unproved properties included in depreciation, depletion, and amortization | $17,400,000 | $53,600,000 | $18,100,000 |
Assets legally restricted for purposes of settling asset retirement obligations | $0 | ||
Gathering and pipeline systems and equipment | Minimum | |||
Properties and Equipment | |||
Estimated useful life | 10 years | ||
Gathering and pipeline systems and equipment | Maximum | |||
Properties and Equipment | |||
Estimated useful life | 25 years | ||
Pipeline and transmission systems | Minimum | |||
Properties and Equipment | |||
Estimated useful life | 12 years | ||
Pipeline and transmission systems | Maximum | |||
Properties and Equipment | |||
Estimated useful life | 25 years | ||
Gathering and compression equipment | Maximum | |||
Properties and Equipment | |||
Estimated useful life | 10 years | ||
Storage equipment and facilities | Minimum | |||
Properties and Equipment | |||
Estimated useful life | 10 years | ||
Storage equipment and facilities | Maximum | |||
Properties and Equipment | |||
Estimated useful life | 16 years | ||
Buildings | Minimum | |||
Properties and Equipment | |||
Estimated useful life | 25 years | ||
Buildings | Maximum | |||
Properties and Equipment | |||
Estimated useful life | 40 years | ||
Other assets | Minimum | |||
Properties and Equipment | |||
Estimated useful life | 3 years | ||
Other assets | Maximum | |||
Properties and Equipment | |||
Estimated useful life | 10 years |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | |||
Credit Risk | |||
Number of customers | 2 | 3 | |
Customer one | |||
Credit Risk | |||
Percentage of total sales | 14.00% | 21.00% | 18.00% |
Customer two | |||
Credit Risk | |||
Percentage of total sales | 10.00% | 16.00% | 12.00% |
Customer three | |||
Credit Risk | |||
Percentage of total sales | 14.00% | 10.00% | |
Customer four | |||
Credit Risk | |||
Percentage of total sales | 11.00% |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2014 | Oct. 31, 2014 | |
Significant Acquisitions and Disposals | ||||||||
Gain (loss) on sale of assets | $17,120,000 | $21,351,000 | $50,635,000 | |||||
Proceeds from sale of assets | 39,491,000 | 323,501,000 | 169,326,000 | |||||
Oklahoma and Texas panhandles oil and gas properties | ||||||||
Significant Acquisitions and Disposals | ||||||||
Gain (loss) on sale of assets | 19,400,000 | |||||||
Proceeds from sale of oil and gas properties before closing adjustments | 160,000,000 | |||||||
Oklahoma, Texas and Kansas | ||||||||
Significant Acquisitions and Disposals | ||||||||
Gain (loss) on sale of assets | -17,500,000 | |||||||
Proceeds from sale of oil and gas properties before closing adjustments | 123,400,000 | |||||||
Other properties | ||||||||
Significant Acquisitions and Disposals | ||||||||
Gain (loss) on sale of assets | 19,500,000 | 1,800,000 | ||||||
Proceeds from sale of assets | 14,400,000 | |||||||
Proceeds from sale of oil and gas properties | 44,300,000 | |||||||
Texas oil and gas properties | ||||||||
Significant Acquisitions and Disposals | ||||||||
Gain (loss) on sale of assets | -18,200,000 | |||||||
Proceeds from sale of oil and gas properties before closing adjustments | 29,900,000 | |||||||
Pearsall shale | ||||||||
Significant Acquisitions and Disposals | ||||||||
Gain (loss) on sale of assets | 67,000,000 | |||||||
Proceeds from sale of oil and gas properties | 125,000,000 | |||||||
Non-operated working interest (as a percent) | 35.00% | |||||||
Total consideration received from the sale of properties | 250,000,000 | |||||||
Percentage of fund for the Company's share of future drilling and completion costs | 85.00% | |||||||
Future drilling and completion costs to be funded by third party | 125,000,000 | |||||||
Oil and Gas Properties, Proved and Unproved | Eagle Ford Shale in South Texas | ||||||||
Significant Acquisitions and Disposals | ||||||||
Acquisition cost of proved and unproved oil and gas properties | 30,500,000 | 210,000,000 | ||||||
Total cash consideration paid for proved and unproved oil and gas properties as of closing date | 29,600,000 | 185,200,000 | ||||||
Adjustment to acquisition cost, consents for leaseholds | 17,400,000 | |||||||
Adjustment to acquisition cost, customary purchase price adjustment | 8,000,000 | |||||||
Acquisition, assumed liability related to asset retirement obligations | 1,200,000 | |||||||
Oil and Gas Properties, Proved and Unproved | East Texas | ||||||||
Significant Acquisitions and Disposals | ||||||||
Gain (loss) on sale of assets | 19,900,000 | |||||||
Proceeds from sale of assets | $44,300,000 |
Properties_and_Equipment_Detai
Properties and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Proved oil and gas properties | $7,984,979 | $6,362,570 |
Unproved oil and gas properties | 492,208 | 375,428 |
Gathering and pipeline systems | 241,272 | 239,958 |
Land, building and other equipment | 109,758 | 94,243 |
Properties and Equipment, gross, total | 8,828,217 | 7,072,199 |
Accumulated depreciation, depletion and amortization | -3,902,506 | -2,525,972 |
Properties and equipment, Net | $4,925,711 | $4,546,227 |
Properties_and_Equipment_Detai1
Properties and Equipment (Details 2) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Properties and Equipment | ||||
Impairment of oil and gas properties | $771,037,000 | $0 | $0 | |
Oil and Gas Properties | Significant Unobservable Inputs (Level 3) | ||||
Properties and Equipment | ||||
Capital rate | 10.00% | |||
East And South Texas | ||||
Properties and Equipment | ||||
Fair value of oil and gas properties subject to impairment | $86,500,000 | 86,500,000 |
Properties_and_Equipment_Detai2
Properties and Equipment (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net changes in capitalized exploratory well costs | |||
Balance at beginning of period | $0 | $10,390 | $5,328 |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 10,557 | 0 | 10,390 |
Reclassifications to wells, facilities, and equipment based on the determination of proved reserves | 0 | -10,198 | 0 |
Capitalized exploratory well costs charged to expense | 0 | -192 | -5,328 |
Balance at end of period | $10,557 | $0 | $10,390 |
Properties_and_Equipment_Detai3
Properties and Equipment (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Capitalized exploratory well costs | ||||
Capitalized exploratory well costs that have been capitalized for a period of one year or less | $10,557 | $0 | $10,390 | |
Capitalized exploratory well costs that have been capitalized for a period greater than one year | 0 | 0 | 0 | |
Capitalized Exploratory Well Costs | $10,557 | $0 | $10,390 | $5,328 |
Equity_Method_Investments_Deta
Equity Method Investments (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||
Apr. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | |
mi | mi | ||||
Schedule of Equity Method Investments [Line Items] | |||||
Net book value | $68,029,000 | $26,892,000 | |||
Constitution Pipeline | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Length of pipeline to be constructed (in miles) | 124 | ||||
Contribution cap | 250,000,000 | ||||
Expected contribution in future years | 139,700,000 | ||||
Number of year's investment expected for contribution | 2 years | ||||
Contributions | 34,200,000 | 18,900,000 | 6,900,000 | ||
Central Penn Line | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Length of pipeline to be constructed (in miles) | 177 | ||||
Expected contribution in future years | 135,300,000 | ||||
Number of years investment is expected to occur, new pipeline | 3 years | ||||
Central Penn Line | Transcontinental Gas Pipe Line Company LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Entity's equity interest in construction agreement (as a percent) | 61.00% | ||||
Constitution Pipeline Company, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Entity's equity interest in construction agreement (as a percent) | 25.00% | ||||
Net book value | 64,300,000 | 26,900,000 | |||
Meade Pipeline Co LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contributions | 3,900,000 | ||||
Net book value | $3,800,000 | ||||
Ownership interest (as a percent) | 20.00% | ||||
Meade Pipeline Co LLC | Central Penn Line | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Entity's equity interest in construction agreement (as a percent) | 39.00% |
Debt_and_Credit_Agreements_Det
Debt and Credit Agreements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2008 |
Debt | |||
Debt | $1,752,000,000 | $1,147,000,000 | |
Debt due in 2016 | 20,000,000 | ||
Debt due in 2018 | 312,000,000 | ||
7.33% weighted-average fixed rate notes | |||
Debt | |||
Debt | 20,000,000 | 20,000,000 | |
Weighted-average interest rate (as a percent) | 7.33% | 7.33% | |
6.51% weighted-average fixed rate notes | |||
Debt | |||
Debt | 425,000,000 | 425,000,000 | |
Weighted-average interest rate (as a percent) | 6.51% | 6.51% | |
9.78% fixed rate notes | |||
Debt | |||
Debt | 67,000,000 | 67,000,000 | |
Interest rate (as a percent) | 9.78% | 9.78% | 9.78% |
5.58% weighted-average fixed rate notes | |||
Debt | |||
Debt | 175,000,000 | 175,000,000 | |
Weighted-average interest rate (as a percent) | 5.58% | 5.58% | |
3.65% weighted-average fixed rate notes | |||
Debt | |||
Debt | 925,000,000 | 0 | |
Revolving credit facility | |||
Debt | |||
Debt | $140,000,000 | $460,000,000 | |
Weighted-average interest rate (as a percent) | 2.40% | 2.00% |
Debt_and_Credit_Agreements_Det1
Debt and Credit Agreements (Details 2) (USD $) | 12 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2001 | Jul. 31, 2008 | Dec. 31, 2008 | Dec. 31, 2010 | Sep. 30, 2014 | |
Investor | Tranche | Investor | Investor | Tranche | ||||
Tranche | Investor | Tranche | Investor | |||||
Debt | ||||||||
Repayments of debt | $1,427,000,000 | $895,000,000 | $263,000,000 | |||||
7.33% weighted-average fixed rate notes | ||||||||
Debt | ||||||||
Asset coverage ratio, minimum | 1.75 | |||||||
Number of trailing quarters used to calculate annual coverage ratio | 12 months | |||||||
Annual coverage ratio, minimum | 2.8 | |||||||
Weighted-average interest rate (as a percent) | 7.33% | 7.33% | ||||||
Principal | 170,000,000 | |||||||
Number of institutional investors that purchased debt in a private placement offering | 7 | |||||||
Number of tranches | 3 | |||||||
Repayments of debt | 150,000,000 | |||||||
7.33% weighted-average fixed rate notes | 7.33% Weighted-Average Fixed Rate Notes Tranche 1 due July 2011 | ||||||||
Debt | ||||||||
Principal | 75,000,000 | |||||||
Term | 10 years | |||||||
Coupon (as a percent) | 7.26% | |||||||
7.33% weighted-average fixed rate notes | 7.33% Weighted-Average Fixed Rate Notes Tranche 2 due July 2013 | ||||||||
Debt | ||||||||
Principal | 75,000,000 | |||||||
Term | 12 years | |||||||
Coupon (as a percent) | 7.36% | |||||||
7.33% weighted-average fixed rate notes | 7.33% Weighted-Average Fixed Rate Notes Tranche 3 due July 2016 | ||||||||
Debt | ||||||||
Principal | 20,000,000 | |||||||
Term | 15 years | |||||||
Coupon (as a percent) | 7.46% | |||||||
6.51% weighted-average fixed rate notes | ||||||||
Debt | ||||||||
Weighted-average interest rate (as a percent) | 6.51% | 6.51% | ||||||
Principal | 425,000,000 | |||||||
Number of institutional investors that purchased debt in a private placement offering | 41 | |||||||
Number of tranches | 3 | |||||||
6.51% weighted-average fixed rate notes | 6.51% Weighted-Average Fixed Rate Notes Tranche 1 due July 2018 | ||||||||
Debt | ||||||||
Principal | 245,000,000 | |||||||
Term | 10 years | |||||||
Coupon (as a percent) | 6.44% | |||||||
6.51% weighted-average fixed rate notes | 6.51% Weighted-Average Fixed Rate Notes Tranche 2 due July 2020 | ||||||||
Debt | ||||||||
Principal | 100,000,000 | |||||||
Term | 12 years | |||||||
Coupon (as a percent) | 6.54% | |||||||
6.51% weighted-average fixed rate notes | 6.51% Weighted-Average Fixed Rate Notes Tranche 3 due July 2023 | ||||||||
Debt | ||||||||
Principal | 80,000,000 | |||||||
Term | 15 years | |||||||
Coupon (as a percent) | 6.69% | |||||||
9.78% fixed rate notes | ||||||||
Debt | ||||||||
Principal | 67,000,000 | |||||||
Number of institutional investors that purchased debt in a private placement offering | 4 | |||||||
Term | 10 years | |||||||
Coupon (as a percent) | 9.78% | 9.78% | 9.78% | |||||
5.58% weighted-average fixed rate notes | ||||||||
Debt | ||||||||
Weighted-average interest rate (as a percent) | 5.58% | 5.58% | ||||||
Principal | 175,000,000 | |||||||
Number of institutional investors that purchased debt in a private placement offering | 8 | |||||||
Number of tranches | 3 | |||||||
5.58% weighted-average fixed rate notes | 5.58% Weighted-Average Fixed Rate Notes Tranche 1 due January 2021 | ||||||||
Debt | ||||||||
Principal | 88,000,000 | |||||||
Term | 10 years | |||||||
Coupon (as a percent) | 5.42% | |||||||
5.58% weighted-average fixed rate notes | 5.58% Weighted-Average Fixed Rate Notes Tranche 2 due January 2023 | ||||||||
Debt | ||||||||
Principal | 25,000,000 | |||||||
Term | 12 years | |||||||
Coupon (as a percent) | 5.59% | |||||||
5.58% weighted-average fixed rate notes | 5.58% Weighted-Average Fixed Rate Notes Tranche 3 due January 2026 | ||||||||
Debt | ||||||||
Principal | 62,000,000 | |||||||
Term | 15 years | |||||||
Coupon (as a percent) | 5.80% | |||||||
Revolving credit facility | ||||||||
Debt | ||||||||
Asset coverage ratio, minimum | 1.75 | |||||||
Number of trailing quarters used to calculate annual coverage ratio | 12 months | |||||||
Annual coverage ratio, minimum | 2.8 | |||||||
Weighted-average interest rate (as a percent) | 2.40% | 2.00% | ||||||
Senior Notes | 3.65% weighted-average fixed rate notes | ||||||||
Debt | ||||||||
Weighted-average interest rate (as a percent) | 3.65% | |||||||
Principal | 925,000,000 | |||||||
Number of institutional investors that purchased debt in a private placement offering | 24 | |||||||
Number of tranches | 3 | |||||||
Debt issuance costs | 5,600,000 | |||||||
Senior Notes | 3.65% weighted-average fixed rate notes | 3.65% Weighted-Average Fixed Rate Notes Tranche 1 due September 2021 | ||||||||
Debt | ||||||||
Principal | 100,000,000 | |||||||
Term | 7 years | |||||||
Coupon (as a percent) | 3.24% | |||||||
Senior Notes | 3.65% weighted-average fixed rate notes | 3.65% Weighted-Average Fixed Rate Notes Tranche 2 due September 2024 | ||||||||
Debt | ||||||||
Principal | 575,000,000 | |||||||
Term | 10 years | |||||||
Coupon (as a percent) | 3.67% | |||||||
Senior Notes | 3.65% weighted-average fixed rate notes | 3.65% Weighted-Average Fixed Rate Notes Tranche 3 due September 2026 | ||||||||
Debt | ||||||||
Principal | $250,000,000 | |||||||
Term | 12 years | |||||||
Coupon (as a percent) | 3.77% |
Debt_and_Credit_Agreements_Det2
Debt and Credit Agreements (Details 3) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 15, 2014 | Apr. 14, 2014 | |
Debt | |||||
Debt | $1,752,000,000 | $1,147,000,000 | |||
Revolving credit facility | |||||
Debt | |||||
Period to reduce outstanding debt in equal monthly installments to the adjusted credit line available | 6 months | ||||
Line of credit | 1,400,000,000 | ||||
Borrowing base | 3,100,000,000 | 2,300,000,000 | |||
Number of trailing quarters used to calculate annual coverage ratio | 12 months | ||||
Annual coverage ratio, minimum | 2.8 | ||||
Asset coverage ratio, minimum | 1.75 | ||||
Current ratio, minimum | 1 | ||||
Debt | 140,000,000 | 460,000,000 | |||
Availability under the credit facility | $1,300,000,000 | ||||
Weighted-average effective interest rates (as a percent) | 2.20% | 2.30% | 3.00% | ||
Weighted-average interest rate (as a percent) | 2.40% | 2.00% | |||
Revolving credit facility | Greater than | |||||
Debt | |||||
Percentage of the entity's total indebtedness to its borrowing base under the credit facility under the first level | 25.00% | ||||
Percentage of the entity's total indebtedness to its borrowing base under the credit facility under the second level | 50.00% | ||||
Percentage of the entity's total indebtedness to its borrowing base under the credit facility under the third level | 75.00% | ||||
Percentage of the entity's total indebtedness to its borrowing base under the credit facility under the fourth level | 90.00% | ||||
Commitment fee percentage | 0.38% | ||||
Revolving credit facility | Less than or equal to | |||||
Debt | |||||
Commitment fee percentage | 0.50% | ||||
Revolving credit facility | Eurodollar Loans | |||||
Debt | |||||
Description of variable rate basis | Euro-Dollars (LIBOR) | ||||
Revolving credit facility | ABR Loans | |||||
Debt | |||||
Description of variable rate basis | Alternate Base Rate (ABR) | ||||
Revolving credit facility | Less than 25 percent | Eurodollar Loans | |||||
Debt | |||||
Margin (as a percent) | 1.50% | ||||
Revolving credit facility | Less than 25 percent | ABR Loans | |||||
Debt | |||||
Margin (as a percent) | 0.50% | ||||
Revolving credit facility | Greater than equal to 25 percent but less than 50 percent | Eurodollar Loans | |||||
Debt | |||||
Margin (as a percent) | 1.75% | ||||
Revolving credit facility | Greater than equal to 25 percent but less than 50 percent | ABR Loans | |||||
Debt | |||||
Margin (as a percent) | 0.75% | ||||
Revolving credit facility | Greater than equal to 50 percent but less than 75 percent | Eurodollar Loans | |||||
Debt | |||||
Margin (as a percent) | 2.00% | ||||
Revolving credit facility | Greater than equal to 50 percent but less than 75 percent | ABR Loans | |||||
Debt | |||||
Margin (as a percent) | 1.00% | ||||
Revolving credit facility | Greater than equal to 75 percent but less than 90 percent | Eurodollar Loans | |||||
Debt | |||||
Margin (as a percent) | 2.25% | ||||
Revolving credit facility | Greater than equal to 75 percent but less than 90 percent | ABR Loans | |||||
Debt | |||||
Margin (as a percent) | 1.25% | ||||
Revolving credit facility | Greater than and equal to 90 percent | Eurodollar Loans | |||||
Debt | |||||
Margin (as a percent) | 2.50% | ||||
Revolving credit facility | Greater than and equal to 90 percent | ABR Loans | |||||
Debt | |||||
Margin (as a percent) | 1.50% |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Details) (USD $) | Dec. 31, 2014 | Apr. 01, 2014 |
Derivative disclosures | ||
Unrealized losses included in accumulated other comprehensive income, reclassified into natural gas and crude oil revenues , pre-tax | $73,400,000 | |
Unrealized losses included in accumulated other comprehensive income, reclassified into natural gas and crude oil revenues , net of tax | $0 | $44,200,000 |
Derivatives Designated as Hedges | Natural Gas Collars with contract period of January 2015 to December 2015 | ||
Derivative disclosures | ||
Volume | 70,900 | |
Derivatives Designated as Hedges | Natural Gas Collars with contract period of January 2015 to December 2015 | Minimum | ||
Derivative disclosures | ||
Collar Floor Price | 3.86 | |
Collar Ceiling Price | 4.27 | |
Derivatives Designated as Hedges | Natural Gas Collars with contract period of January 2015 to December 2015 | Maximum | ||
Derivative disclosures | ||
Collar Floor Price | 3.91 | |
Collar Ceiling Price | 4.33 | |
Derivatives Designated as Hedges | Natural Gas Collars with contract period of January 2015 to December 2015 | Weighted Average | ||
Derivative disclosures | ||
Collar Floor Price | 3.87 | |
Collar Ceiling Price | 4.35 | |
Derivatives Designated as Hedges | Natural Gas Swaps with contract period of January 2015 to December 2015 | ||
Derivative disclosures | ||
Volume | 70,900 | |
Derivatives Designated as Hedges | Natural Gas Swaps with contract period of January 2015 to December 2015 | Weighted Average | ||
Derivative disclosures | ||
Swaps Weighted Average | 3.92 | |
Derivatives Designated as Hedges | Natural Gas Swaps With Contract Period Of January 2015 To March 2015 | ||
Derivative disclosures | ||
Volume | 5,200 | |
Derivatives Designated as Hedges | Natural Gas Swaps With Contract Period Of January 2015 To March 2015 | Weighted Average | ||
Derivative disclosures | ||
Swaps Weighted Average | 4.62 | |
Derivatives Designated as Hedges | Natural Gas Swaps With Contract Period of April 2015 To October 2015 | ||
Derivative disclosures | ||
Volume | 10,400 | |
Derivatives Designated as Hedges | Natural Gas Swaps With Contract Period of April 2015 To October 2015 | Weighted Average | ||
Derivative disclosures | ||
Swaps Weighted Average | 3.86 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Fair Value Asset | $137,603 | $3,019 |
Fair Value Liability | 0 | 13,912 |
Derivatives Designated as Hedges | Commodity contracts | Derivative instruments (current assets) | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Fair Value Asset | 0 | 3,019 |
Derivatives Designated as Hedges | Commodity contracts | Derivative instruments (current liabilities) | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Fair Value Liability | 0 | 13,912 |
Derivatives Not Designated as Hedges | Commodity contracts | Derivative instruments (current assets) | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Fair Value Asset | $137,603 | $0 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Assets | ||
Gross amounts of recognized assets | $137,603 | $13,792 |
Gross amounts offset in the statement of financial position | 0 | -10,773 |
Net amounts of assets presented in the statement of financial position | 137,603 | 3,019 |
Gross amounts of financial instruments not offset in the statement of financial position | -2,338 | -373 |
Net amount | 139,941 | 3,392 |
Derivative Liabilities | ||
Gross amounts of recognized liabilities | 0 | 24,685 |
Gross amounts offset in the statement of financial position | 0 | -10,773 |
Net amounts of liabilities presented in the statement of financial position | 0 | 13,912 |
Gross amounts of financial instruments not offset in the statement of financial position | 0 | 0 |
Net amount | $0 | $13,912 |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities (Details 4) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 01, 2014 | |
Effect of derivative instruments on the Consolidated Statement of Operations | ||||
Gain (loss) related to amounts previously frozen in accumulated OCI, reclassified into income | ($73,400,000) | |||
Derivatives Designated as Hedges | ||||
Effect of derivative instruments on the Consolidated Statement of Operations | ||||
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion) | -144,203,000 | 57,002,000 | 236,326,000 | |
Derivatives Designated as Hedges | Natural gas | ||||
Effect of derivative instruments on the Consolidated Statement of Operations | ||||
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion) | -143,577,000 | 52,733,000 | 225,108,000 | |
Derivatives Designated as Hedges | Crude oil and condensate | ||||
Effect of derivative instruments on the Consolidated Statement of Operations | ||||
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion) | -626,000 | 4,269,000 | 11,218,000 | |
Derivatives Designated as Hedges | Commodity contracts | ||||
Effect of derivative instruments on the Consolidated Statement of Operations | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | ($133,310,000) | ($4,523,000) | $88,705,000 |
Derivative_Instruments_and_Hed6
Derivative Instruments and Hedging Activities 5 (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Unrealized gain (loss) on derivative instruments | $137,603,000 | $0 | ($494,000) | |||
Gain (loss) in derivative instruments not designated as hedges | 145,891,000 | 0 | -494,000 | |||
Gain (loss) on derivative, net | 75,116,000 | 57,002,000 | 235,832,000 | |||
Derivative Instruments, Additional Disclosures | ||||||
Ineffectiveness related to derivative instruments | 0 | 0 | 0 | |||
Derivatives Designated as Hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Realized gain (loss) on derivative instruments | -70,775,000 | 57,002,000 | 236,326,000 | |||
Derivatives Not Designated as Hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Unrealized gain (loss) on derivative instruments | 137,603,000 | 0 | -494,000 | |||
Natural gas | Derivatives Designated as Hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Realized gain (loss) on derivative instruments | -70,557,000 | 52,733,000 | 225,108,000 | |||
Natural gas | Derivatives Not Designated as Hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Realized gain (loss) on derivative instruments | -73,020,000 | [1] | 0 | [1] | 0 | [1] |
Crude oil and condensate | Derivatives Designated as Hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Realized gain (loss) on derivative instruments | -218,000 | 4,269,000 | 11,218,000 | |||
Crude oil and condensate | Derivatives Not Designated as Hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Realized gain (loss) on derivative instruments | -408,000 | [1] | 0 | [1] | 0 | [1] |
Gain (loss) on derivative instruments | Derivatives Not Designated as Hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Realized gain (loss) on derivative instruments | $81,716,000 | $0 | $0 | |||
[1] | Relates entirely to the reclassification from accumulated other comprehensive income (loss) of previously frozen losses associated with derivatives that were de-designated as cash flow hedges on April 1, 2014. |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Impaired_Asset_And_Liabilty | Impaired_Asset_And_Liabilty | Impaired_Asset_And_Liabilty | |
Assets | |||
Deferred compensation plan | $13,115,000 | $12,507,000 | |
Derivative contracts | 137,603,000 | 13,792,000 | |
Total assets | 150,718,000 | 26,299,000 | |
Liabilities | |||
Deferred compensation plan | 28,932,000 | 33,211,000 | |
Derivative contracts | 0 | 24,685,000 | |
Total liabilities | 28,932,000 | 57,896,000 | |
Number of non-financial assets and liabilities impaired | 0 | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets | |||
Deferred compensation plan | 13,115,000 | 12,507,000 | |
Derivative contracts | 0 | 0 | |
Total assets | 13,115,000 | 12,507,000 | |
Liabilities | |||
Deferred compensation plan | 28,932,000 | 33,211,000 | |
Derivative contracts | 0 | 0 | |
Total liabilities | 28,932,000 | 33,211,000 | |
Recurring Basis | Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Deferred compensation plan | 0 | 0 | |
Derivative contracts | 51,645,000 | 0 | |
Total assets | 51,645,000 | 0 | |
Liabilities | |||
Deferred compensation plan | 0 | 0 | |
Derivative contracts | 0 | 6,983,000 | |
Total liabilities | 0 | 6,983,000 | |
Recurring Basis | Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Deferred compensation plan | 0 | 0 | |
Derivative contracts | 85,958,000 | 13,792,000 | |
Total assets | 85,958,000 | 13,792,000 | |
Liabilities | |||
Deferred compensation plan | 0 | 0 | |
Derivative contracts | 0 | 17,702,000 | |
Total liabilities | $0 | $17,702,000 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
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 | $195,127 |
Total gains (losses) (realized or unrealized): | |||
Included in earnings | 35,067 | 52,733 | 224,614 |
Included in other comprehensive income | 3,755 | -45,069 | -157,478 |
Settlements | 51,046 | -52,733 | -221,489 |
Transfers in and/or out of level 3 | 0 | 0 | 385 |
Balance at end of period | 85,958 | -3,910 | 41,159 |
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period | $85,958 | $0 | $0 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair value disclosures | ||
Debt | $1,752,000 | $1,147,000 |
Carrying Amount | ||
Fair value disclosures | ||
Debt | 1,752,000 | 1,147,000 |
Estimated Fair Value | ||
Fair value disclosures | ||
Debt | $1,850,867 | $1,224,273 |
Fair_Value_Measurements_Additi
Fair Value Measurements (Additional Information) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Impaired_Asset_And_Liabilty | Impaired_Asset_And_Liabilty | Impaired_Asset_And_Liabilty | |
Financial Assets and Liabilities Fair Value Measurement | |||
Number of non-financial assets and liabilities impaired | 0 | 0 | 0 |
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 |
Other assets or liabilities required to be recognized at fair value on a nonbrecurring basis | 28,932,000 | 57,896,000 | |
Nonrecurring Basis | |||
Financial Assets and Liabilities Fair Value Measurement | |||
Other assets or liabilities required to be recognized at fair value on a nonbrecurring basis | $0 | $0 |
Asset_Retirement_Obligation_De
Asset Retirement Obligation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Asset Retirement Obligation | ||
Balance at beginning of period | $75,853,000 | |
Liabilities incurred | 7,220,000 | |
Liabilities settled and divested | -1,474,000 | |
Liabilities acquired | 1,206,000 | |
Accretion expense | 5,110,000 | |
Change in estimate | 38,740,000 | |
Balance at end of period | 126,655,000 | |
Additional disclosures | ||
Asset retirement obligation, current | $2,000,000 | $2,000,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2015 | |
Lease Commitments | ||||
Rent expense | $10,800,000 | $12,300,000 | $11,600,000 | |
Future minimum rental commitments under non-cancelable leases | ||||
2015 | 5,818,000 | |||
2016 | 3,469,000 | |||
2017 | 2,873,000 | |||
2018 | 2,312,000 | |||
2019 | 1,877,000 | |||
Thereafter | 9,464,000 | |||
Aggregate future minimum rental commitments | 25,813,000 | |||
Transportation and Gathering Agreements | ||||
Future minimum obligations under transportation and gathering | ||||
2015 | 130,411,000 | |||
2016 | 161,675,000 | |||
2017 | 163,573,000 | |||
2018 | 138,917,000 | |||
2019 | 129,245,000 | |||
Thereafter | 1,226,791,000 | |||
Future minimum obligations under transportation and gathering | 1,950,612,000 | |||
Drilling Rig Commitments | ||||
Drilling Rig Commitments | ||||
Number of drilling rig commitments | 3 | |||
Drilling Rig Commitments | ||||
2015 | 14,400,000 | |||
2016 | 7,000,000 | |||
Drilling Rig Commitments | Minimum | ||||
Drilling Rig Commitments | ||||
Drilling rig commitment term | 2 years | |||
Drilling Rig Commitments | Maximum | ||||
Drilling Rig Commitments | ||||
Drilling rig commitment term | 3 years | |||
Subsequent event | Transportation and Gathering Agreements | ||||
Other transportation and gathering commitments disclosure | ||||
Increase in future aggregate obligations under transportation commitments | $105,900,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (Shelby County, Texas, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2010 |
Shelby County, Texas | |
Environmental Matters | |
Amount of actual damages sought | $10 |
Ratio of exemplary damages to actual damages sought | 2.5 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current | |||
Federal | $44,887,000 | $56,544,000 | $24,618,000 |
State | -4,387,000 | 10,841,000 | 563,000 |
Total | 40,500,000 | 67,385,000 | 25,181,000 |
Deferred | |||
Federal | -32,375,000 | 111,147,000 | 57,704,000 |
State | -80,192,000 | 27,233,000 | 23,225,000 |
Total | -112,567,000 | 138,380,000 | 80,929,000 |
Income tax (benefit) expense | -72,067,000 | 205,765,000 | 106,110,000 |
Reconciliation of actual provision for income taxes and provision for income taxes resulting from the use of federal statutory income tax | |||
Statutory federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Computed expected federal income tax | 11,341,000 | 169,938,000 | 83,244,000 |
Deferred tax adjustment related to change in overall state tax rate | -86,956,000 | 15,220,000 | 13,596,000 |
State income tax, net of federal income tax benefit | 903,000 | 17,513,000 | 9,609,000 |
Valuation allowance | 3,977,000 | 0 | 262,000 |
Uncertain tax positions | -1,974,000 | 2,400,000 | 0 |
Other, net | 642,000 | 694,000 | -601,000 |
Income tax (benefit) expense | -72,067,000 | 205,765,000 | 106,110,000 |
Deferred Tax Assets | |||
Net operating loss carryforward | 141,961,000 | 78,182,000 | |
Alternative minimum tax carryforward | 227,719,000 | 182,212,000 | |
Foreign tax credit | 4,525,000 | 4,822,000 | |
Derivative instruments | 0 | 3,946,000 | |
Incentive compensation | 21,961,000 | 36,450,000 | |
Deferred compensation | 9,531,000 | 11,988,000 | |
Post-retirement benefits | 13,689,000 | 13,965,000 | |
Other | 747,000 | 3,619,000 | |
Total | 420,133,000 | 335,184,000 | |
Deferred Tax Liabilities | |||
Properties and equipment | 1,248,532,000 | 1,321,241,000 | |
Deferred Tax Liabilities, Derivatives | 50,750,000 | 0 | |
Total | 1,299,282,000 | 1,321,241,000 | |
Net deferred tax liabilities | 879,149,000 | 986,057,000 | |
State tax effected net operating losses | |||
Tax benefits related to employee stock-based compensation not reflected in deferred tax assets | 108,600,000 | ||
Reconciliation of unrecognized tax benefits | |||
Balance at beginning of year | 3,700,000 | 0 | 0 |
Additions based on tax provisions related to the current year | 0 | 3,700,000 | 0 |
Additions for tax positions of prior years | 0 | 0 | 0 |
Reductions for tax positions of prior years | -3,037,000 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Balance at end of year | 663,000 | 3,700,000 | 0 |
State Tax Reporting | |||
State tax effected net operating losses | |||
Net operating loss carryforwards | 483,700,000 | ||
Federal | |||
State tax effected net operating losses | |||
Net operating loss carryforwards | $399,800,000 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (Qualified and Non-Qualified Pension Plans, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Qualified and Non-Qualified Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost | $0 | $0 | $19,500,000 |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details 2) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | ||||
Retiree | Retiree | ||||||
Amounts Recognized in the Balance Sheet | |||||||
Long-term liabilities | $35,827,000 | $33,554,000 | |||||
Postretirement Benefits Other than Pensions | |||||||
Pension and Other Postretirement Benefits | |||||||
Number of retirees and their dependents to whom benefits under the plan are provided | 278 | 270 | |||||
Change in Benefit Obligation | |||||||
Benefit obligation at beginning of year | 34,995,000 | 40,168,000 | 39,969,000 | ||||
Service cost | 1,295,000 | 1,739,000 | 1,513,000 | ||||
Interest cost | 1,343,000 | 1,500,000 | 1,537,000 | ||||
Actuarial (gain) loss | 373,000 | -7,618,000 | -2,073,000 | ||||
Benefits paid | -930,000 | -794,000 | -778,000 | ||||
Benefit obligation at end of year | 37,076,000 | 34,995,000 | 40,168,000 | ||||
Change in Plan Assets | |||||||
Fair value of plan assets at end of year | 0 | 0 | 0 | ||||
Funded status at end of year | -37,076,000 | -34,995,000 | -40,168,000 | ||||
Amounts Recognized in the Balance Sheet | |||||||
Current liabilities | 1,249,000 | 1,441,000 | 1,304,000 | ||||
Long-term liabilities | 35,827,000 | 33,554,000 | 38,864,000 | ||||
Amounts recognized in the balance sheet | 37,076,000 | 34,995,000 | 40,168,000 | ||||
Amounts Recognized in Accumulated Other Comprehensive Income | |||||||
Net actuarial loss | -3,408,000 | -3,010,000 | -11,269,000 | ||||
Amount recognized to accumulated other comprehensive income, net actuarial loss | 3,408,000 | 3,010,000 | 11,269,000 | ||||
Components of Net Periodic Postretirement Benefit Cost | |||||||
Service cost | 1,295,000 | 1,739,000 | 1,513,000 | ||||
Interest cost | 1,343,000 | 1,500,000 | 1,537,000 | ||||
Amortization of net (gain) loss | -26,000 | 641,000 | 824,000 | ||||
Net periodic postretirement cost | 2,612,000 | 3,880,000 | 3,874,000 | ||||
Other Changes in Benefit Obligations Recognized in Other Comprehensive Income (Loss) | |||||||
Net (gain) loss | 373,000 | -7,618,000 | -2,073,000 | ||||
Amortization of net (gain) loss | 26,000 | -641,000 | -824,000 | ||||
Total recognized in other comprehensive income (loss) | 399,000 | -8,259,000 | -2,897,000 | ||||
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 3,011,000 | -4,379,000 | 977,000 | ||||
Weighted-average assumptions used to determine projected pension benefit obligations | |||||||
Discount rate (as a percent) | 4.00% | [1] | 4.75% | [1] | 4.00% | [1] | |
Health care cost trend rate for medical benefits assumed for next year (as a percent) | 6.00% | 6.50% | 7.00% | ||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (as a percent) | 4.50% | 4.50% | 5.00% | ||||
Year that the rate reaches the ultimate trend rate | 2018 | 2018 | 2015 | ||||
Discount rate beginning of year (as a percent) | 4.75% | 4.00% | 4.25% | ||||
Percentage of the expected annual fully-insured premium by which subsidy is limited for participants age 65 and older | 60.00% | ||||||
Subsidy limit which should not exceed aggregate annual amount for participants under age 65 | 648,000 | ||||||
Annual increase in subsidy limit (as a percent), for participants under age 65 | 3.50% | ||||||
Postretirement Benefits Other than Pensions | Forecast | |||||||
Change in Benefit Obligation | |||||||
Interest cost | 1,300,000 | ||||||
Components of Net Periodic Postretirement Benefit Cost | |||||||
Interest cost | $1,300,000 | ||||||
[1] | Represents the year end rates used to determine the projected benefit obligation. To compute postretirement cost in 2014, 2013 and 2012, respectively, the beginning of year discount rates of 4.75%, 4.00% and 4.25% were used. |
Employee_Benefit_Plans_Details2
Employee Benefit Plans (Details 3) (Postretirement Benefits Other than Pensions, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Postretirement Benefits Other than Pensions | |
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 | $678 |
Effect of a 1 percentage-point decrease in total of service and interest cost | -308 |
Effect 1 percentage-point increase in postretirement benefit obligation | 6,098 |
Effect of a 1 percentage-point decrease in postretirement benefit obligation | -4,893 |
Estimated future benefit payments | |
2015 | 1,274 |
2016 | 1,333 |
2017 | 1,477 |
2018 | 1,623 |
2019 | 1,820 |
Years 2020 - 2024 | $11,329 |
Employee_Benefit_Plans_Details3
Employee Benefit Plans (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Compensation Plan | |||
Liabilities, including the Company's common stock | $28,932,000 | $33,211,000 | |
Savings Investment Plan | |||
Defined Contribution plans | |||
Contribution match on portion of employee salary (as a percent) | 6.00% | ||
Discretionary profit sharing contribution Plan | |||
Discretionary profit sharing contribution match on portion of employee salary and bonus (as a percent) | 9.00% | ||
Plan contributions charged to expense | 7,200,000 | 6,900,000 | 6,300,000 |
Deferred compensation plan | |||
Deferred Compensation Plan | |||
Market value of the trust assets, excluding the Company's common stock | 13,100,000 | 12,500,000 | |
Liabilities, including the Company's common stock | 28,900,000 | 33,200,000 | |
Number of common stock deferred into the rabbi trust (in shares) | 534,174 | ||
Company's common stock held in the rabbi trust | 5,700,000 | 5,700,000 | |
Plan contributions charged to expense | 4,900,000 | ||
Company contributions to deferred compensation plan | $800,000 | $700,000 | $700,000 |
Capital_Stock_Details
Capital Stock (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-14 | 30-May-14 | 1-May-14 | |
Incentive Plans | ||||||
Common stock, Authorized shares | 960,000,000 | 480,000,000 | 960,000,000 | 480,000,000 | ||
Treasury stock | ||||||
Number of shares repurchased | 4,300,000 | 4,800,000 | 0 | |||
Cost of shares repurchased | $138,852,000 | $164,634,000 | $0 | |||
Cumulative number of shares repurchased under a share repurchase program | 29,900,000 | |||||
Treasury stock, number of shares authorized to be repurchased | 40,000,000 | |||||
Treasury stock, cumulative shares retired | 20,000,000 | |||||
Cumulative cost of shares repurchased under a share repurchase program | $388,400,000 | |||||
Treasury stock reissued | 0 | |||||
Shares held as treasury stock | 9,892,680 | 5,618,166 | ||||
2014 Incentive Plan | ||||||
Incentive Plans | ||||||
Number of shares reserved for issuance | 18,000,000 | |||||
Number of shares available for issuance | 18,000,000 | |||||
2014 Incentive Plan | Stock options | Less than or equal to | ||||||
Incentive Plans | ||||||
Number of shares reserved for issuance | 10,000,000 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Stock-Based Compensation arrangements | ||||||
Stock based compensation expense | $21,500,000 | $51,800,000 | $33,500,000 | |||
Tax benefits realized for stock-based compensation | -1,400,000 | 18,900,000 | 0 | |||
Restricted Stock Awards | ||||||
Stock-Based Compensation arrangements | ||||||
Stock based compensation expense | 1,000,000 | 200,000 | 1,100,000 | |||
Summary of restricted stock award activity (in shares) | ||||||
Outstanding at beginning of period | 27,806 | [1],[2] | 71,508 | [1],[2] | 476,388 | |
Granted | 47,500 | 7,200 | 13,100 | |||
Vested | -17,437 | -50,902 | -402,800 | |||
Forfeited | -8,000 | 0 | -15,180 | |||
Outstanding at end of period | 49,869 | [1],[2] | 27,806 | [1],[2] | 71,508 | [1],[2] |
Weighted-Average Grant Date Fair Value per Share (in usd per share) | ||||||
Outstanding at beginning of period | $20.53 | [1],[2] | $11.82 | [1],[2] | $9.18 | |
Granted | $34.76 | $35.70 | $18.42 | |||
Vested | $15.84 | $10.44 | $9.03 | |||
Forfeited | $35 | $0 | $8.80 | |||
Outstanding at end of period | $33.40 | [1],[2] | $20.53 | [1],[2] | $11.82 | [1],[2] |
Additional disclosures | ||||||
Aggregate intrinsic value | 1,500,000 | |||||
Weighted-average remaining contractual term of non-vested shares | 1 year 10 months 24 days | |||||
Unamortized compensation expense | 800,000 | |||||
Total fair value of shares vested | $600,000 | $1,600,000 | $3,600,000 | |||
Restricted Stock Awards | Greater than | ||||||
Stock-Based Compensation arrangements | ||||||
Annual forfeiture rate assumption (as a percent) | 5.00% | |||||
Restricted Stock Awards | Less than or equal to | ||||||
Stock-Based Compensation arrangements | ||||||
Annual forfeiture rate assumption (as a percent) | 7.00% | |||||
Restricted Stock - 3 Year Service Awards | ||||||
Stock-Based Compensation arrangements | ||||||
Vesting period | 3 years | |||||
Restricted Stock - Graded Vesting | Greater than | ||||||
Stock-Based Compensation arrangements | ||||||
Vesting period | 3 years | |||||
Restricted Stock - Graded Vesting | Less than or equal to | ||||||
Stock-Based Compensation arrangements | ||||||
Vesting period | 4 years | |||||
[1] | As of DecemberB 31, 2014, the weighted average remaining contractual term of non-vested restricted stock awards outstanding was 1.9 years. | |||||
[2] | As of DecemberB 31, 2014, the aggregate intrinsic value was $1.5 million and was calculated by multiplying the closing market price of the Company's stock on DecemberB 31, 2014 by the number of non-vested restricted stock awards outstanding. |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (USD $) | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Additional disclosures | ||||||
Stock based compensation expense | $21.50 | $51.80 | $33.50 | |||
Restricted Stock Units | ||||||
Summary of restricted stock award activity (in shares) | ||||||
Outstanding at beginning of period | 566,321 | [1],[2] | 515,468 | [1],[2] | 687,308 | |
Granted and fully vested | 37,893 | 50,853 | 76,608 | |||
Issued | 0 | 0 | -248,448 | |||
Outstanding at end of period | 604,214 | [1],[2] | 566,321 | [1],[2] | 515,468 | [1],[2] |
Weighted-Average Grant Date Fair Value per Share (in usd per share) | ||||||
Outstanding at beginning of period | $10.75 | [1],[2] | $9.10 | [1],[2] | $7.88 | |
Granted and fully vested | $38.28 | $27.53 | $18.28 | |||
Issued | $0 | $0 | $8.56 | |||
Outstanding at end of period | $12.48 | [1],[2] | $10.75 | [1],[2] | $9.10 | [1],[2] |
Additional disclosures | ||||||
Aggregate intrinsic value | 17.9 | |||||
Stock based compensation expense | $1.50 | $1.40 | $1.40 | |||
[1] | 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. | |||||
[2] | As of DecemberB 31, 2014, the aggregate intrinsic value was $17.9 million and was calculated by multiplying the closing market price of the Company's stock on DecemberB 31, 2014 by the number of outstanding restricted stock units. |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 3) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Additional disclosures | ||||||
Stock based compensation expense | $21,500,000 | $51,800,000 | $33,500,000 | |||
Stock Appreciation Rights | ||||||
Stock-Based Compensation arrangements | ||||||
Graded vesting rights | 3 years | |||||
Vesting rights | one-third of the award becoming exercisable each year on the anniversary date of the grant | |||||
Contractual term | 7 years | |||||
Summary of Stock Appreciation Rights Activity (in shares) | ||||||
Outstanding at beginning of period | 667,764 | [1] | 1,722,444 | [1] | 2,576,260 | |
Granted | 0 | 240,884 | ||||
Exercised | 0 | -1,054,680 | -1,094,700 | |||
Outstanding at end of period(1) | 667,764 | [1] | 667,764 | [1] | 1,722,444 | [1] |
Exercisable at end of period(2) | 590,960 | [2] | 386,582 | [2] | 1,145,972 | [2] |
Weighted-Average Exercise Price (in dollars per share) | ||||||
Outstanding at beginning of period | $12.63 | [1] | $9.75 | [1] | $8.02 | |
Granted | $0 | $17.59 | ||||
Exercised | $0 | $7.92 | $7.42 | |||
Outstanding at end of period(1) | $12.63 | [1] | $12.63 | [1] | $9.75 | [1] |
Exercisable at end of period(2) | $11.98 | [2] | $11.33 | [2] | $7.97 | [2] |
Additional disclosures | ||||||
Aggregate intrinsic value of stock appreciation rights outstanding | 11,300,000 | |||||
Weighted-average remaining contractual term of non-vested shares | 3 years 3 months 18 days | |||||
Aggregate intrinsic value of stock appreciation rights exercisable | 10,400,000 | |||||
Stock appreciation rights exercisable, weighted average remaining contractual term | 3 years 2 months 12 days | |||||
Stock based compensation expense | 100,000 | 300,000 | 1,900,000 | |||
Compensation expenses related to the immediate expensing of shares granted to retirement-eligible employees | 1,200,000 | |||||
Unamortized compensation expense | $0 | |||||
Weighted-average value per SAR granted during the period (in dollars per share) | $8.16 | |||||
Assumptions | ||||||
Stock price volatility | 55.30% | |||||
Risk free rate of return | 0.90% | |||||
Expected dividend yield (as a percent) | 0.30% | |||||
Expected term | 5 years | |||||
[1] | The intrinsic value of a SAR is the amount which the current market value of the underlying stock exceeds the exercise price of the SAR. As of DecemberB 31, 2014, the aggregate intrinsic value and weighted-average remaining contractual term of SARs outstanding was $11.3 million and 3.3 years, respectively. | |||||
[2] | As of DecemberB 31, 2014, the aggregate intrinsic value and weighted-average remaining contractual term of SARs exercisable was $10.4 million and 3.2 years, respectively. |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 4) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
2012 Hybrid Performance Share Awards | Percent vesting on first year anniversary | ||||||
Stock-Based Compensation arrangements | ||||||
Percent vesting per anniversary period | 33.00% | |||||
2012 Hybrid Performance Share Awards | Percent vesting on second year anniversary | ||||||
Stock-Based Compensation arrangements | ||||||
Percent vesting per anniversary period | 33.00% | |||||
2012 Hybrid Performance Share Awards | Percent vesting on third year anniversary | ||||||
Stock-Based Compensation arrangements | ||||||
Percent vesting per anniversary period | 33.00% | |||||
2013 Hybrid Performance Share Awards | Percent vesting on first year anniversary | ||||||
Stock-Based Compensation arrangements | ||||||
Percent vesting per anniversary period | 25.00% | |||||
2013 Hybrid Performance Share Awards | Percent vesting on second year anniversary | ||||||
Stock-Based Compensation arrangements | ||||||
Percent vesting per anniversary period | 25.00% | |||||
2013 Hybrid Performance Share Awards | Percent vesting on third year anniversary | ||||||
Stock-Based Compensation arrangements | ||||||
Percent vesting per anniversary period | 50.00% | |||||
2014 Hybrid Performance Share Awards | Percent vesting on first year anniversary | ||||||
Stock-Based Compensation arrangements | ||||||
Percent vesting per anniversary period | 25.00% | |||||
2014 Hybrid Performance Share Awards | Percent vesting on second year anniversary | ||||||
Stock-Based Compensation arrangements | ||||||
Percent vesting per anniversary period | 25.00% | |||||
2014 Hybrid Performance Share Awards | Percent vesting on third year anniversary | ||||||
Stock-Based Compensation arrangements | ||||||
Percent vesting per anniversary period | 50.00% | |||||
Performance Share Awards | ||||||
Stock-Based Compensation arrangements | ||||||
Number of types of performance awards granted to employees | 3 | |||||
Performance period | 3 years | |||||
Performance Share Awards | Low end of range | ||||||
Stock-Based Compensation arrangements | ||||||
Annual forfeiture rate assumption (as a percent) | 0.00% | |||||
Performance Share Awards | High end of range | ||||||
Stock-Based Compensation arrangements | ||||||
Annual forfeiture rate assumption (as a percent) | 6.00% | |||||
Performance shares based on performance conditions | ||||||
Stock-Based Compensation arrangements | ||||||
Number of types of performance awards granted to employees | 2 | |||||
Performance shares based on performance conditions | High end of range | ||||||
Stock-Based Compensation arrangements | ||||||
Right to receive shares (as a percent) | 100.00% | |||||
Employee Performance Share Awards | ||||||
Stock-Based Compensation arrangements | ||||||
Performance period | 3 years | |||||
Vesting rights | An employee will earn one-third of the award for each of the three performance metrics that the Company meets | |||||
Summary of employee performance share awards activity (in shares) | ||||||
Outstanding at beginning of period | 1,657,980 | 1,919,640 | 2,627,900 | |||
Granted | 241,130 | 379,540 | 567,360 | |||
Issued and fully vested | -751,780 | -610,960 | -1,189,920 | |||
Forfeited | -58,370 | -30,240 | -85,700 | |||
Outstanding at end of period | 1,088,960 | 1,657,980 | 1,919,640 | |||
Weighted-Average Grant Date Fair Value per Share (in usd per share) | ||||||
Outstanding at beginning of period | $16.25 | $12.27 | $8.12 | |||
Granted | $39.43 | $26.62 | $17.59 | |||
Issued and fully vested | $10.19 | $10.13 | $5.66 | |||
Forfeited | $23.57 | $17.06 | $12.11 | |||
Outstanding at end of period | $25.18 | $16.25 | $12.27 | |||
Hybrid Performance Share Awards | ||||||
Stock-Based Compensation arrangements | ||||||
Performance period | 3 years | |||||
Vesting rights | The 2013 awards vest 25% on each of the first and second anniversary dates and 50% on the third anniversary and the 2012 and 2011 awards vest one-third on each anniversary date | |||||
Minimum operating cash flow for the year preceding the performance period | $100,000,000 | |||||
Summary of employee performance share awards activity (in shares) | ||||||
Outstanding at beginning of period | 450,212 | 592,162 | 759,328 | |||
Granted | 123,257 | 169,980 | 234,922 | |||
Issued and fully vested | -244,408 | -311,930 | -402,088 | |||
Outstanding at end of period | 329,061 | 450,212 | 592,162 | |||
Weighted-Average Grant Date Fair Value per Share (in usd per share) | ||||||
Outstanding at beginning of period | $18.96 | $13.11 | $9.16 | |||
Granted | $39.43 | $26.62 | $17.59 | |||
Issued and fully vested | $15.41 | $12.03 | $8.27 | |||
Outstanding at end of period | $29.27 | $18.96 | $13.11 | |||
Performance shares based on market conditions | ||||||
Stock-Based Compensation arrangements | ||||||
Number of types of performance awards granted to employees | 1 | |||||
Performance shares based on market conditions | High end of range | ||||||
Stock-Based Compensation arrangements | ||||||
Right to receive shares (as a percent) | 100.00% | |||||
Right to receive additional shares (as a percent) | 100.00% | |||||
TSR Performance Share Awards | ||||||
Stock-Based Compensation arrangements | ||||||
Performance period | 3 years | |||||
Summary of employee performance share awards activity (in shares) | ||||||
Outstanding at beginning of period | 860,686 | 605,706 | 1,495,904 | |||
Granted | 184,885 | 254,980 | 234,922 | |||
Issued and fully vested | -370,784 | 0 | -1,125,120 | |||
Outstanding at end of period | 674,787 | 860,686 | 605,706 | |||
Weighted-Average Grant Date Fair Value per Share (in usd per share) | ||||||
Outstanding at beginning of period | $14.06 | [1] | $10.27 | [1] | $6.07 | [1] |
Granted | $32.04 | [1] | $23.06 | [1] | $14.16 | [1] |
Issued and fully vested | $7.81 | [1] | $0 | [1] | $5.49 | [1] |
Outstanding at end of period | $22.42 | [1] | $14.06 | [1] | $10.27 | [1] |
General information on stock-based compensation | ||||||
Cash payment | 7,000,000 | 0 | 18,400,000 | |||
TSR Performance Share Awards | Equity Component | ||||||
Assumptions | ||||||
Fair value per performance share award granted during the period (usd per share) | $32.04 | $23.06 | $14.16 | |||
Stock price volatility | 41.30% | 43.80% | 46.70% | |||
Risk free rate of return | 0.70% | 0.40% | 0.40% | |||
Expected dividend yield (as a percent) | 0.20% | 0.20% | 0.20% | |||
TSR Performance Share Awards | Liability Component | ||||||
General information on stock-based compensation | ||||||
Non-current portion of the liability , included in Other Liabilities | 4,000,000 | 7,800,000 | ||||
Current portion of the liability, included in Other Liabilities | $7,000,000 | $14,300,000 | ||||
Assumptions | ||||||
Expected dividend yield (as a percent) | 0.30% | 0.20% | 0.20% | |||
Stock price volatility, minimum | 29.10% | 30.20% | 41.10% | |||
Stock price volatility, maximum | 29.70% | 35.90% | 45.70% | |||
Risk free rate of return, minimum | 0.25% | 0.10% | 0.20% | |||
Risk free rate of return, maximum | 0.67% | 0.40% | 0.30% | |||
TSR Performance Share Awards | Low end of range | Liability Component | ||||||
Assumptions | ||||||
Fair value per performance share award granted during the period (usd per share) | $12.88 | $23.96 | $19.11 | |||
TSR Performance Share Awards | High end of range | Liability Component | ||||||
Assumptions | ||||||
Fair value per performance share award granted during the period (usd per share) | $29.72 | $38.61 | $24.76 | |||
[1] | The grant date fair value figures in this table represent the fair value of the equity component of the performance share awards. |
StockBased_Compensation_Detail4
Stock-Based Compensation (Details 5) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Feb. 11, 2013 | Aug. 27, 2013 | Feb. 28, 2015 | Jan. 02, 2015 | 1-May-12 | Oct. 01, 2013 | |
item | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Stock based compensation expense | $21,500,000 | $51,800,000 | $33,500,000 | |||||||
Supplemental Employee Incentive Plan | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Stock based compensation expense | 3,000,000 | 11,500,000 | 1,400,000 | |||||||
Number of trading days during which the closing price per share of the company's common stock equals or exceeds the goal price | 20 days | |||||||||
Number of consecutive trading days | 60 days | |||||||||
Period during which closing price per share equals or exceeds an interim price goal | 2 years | |||||||||
Period during which closing price per share equals or exceeds final price goal | 4 years | |||||||||
Percentage of the total distribution paid immediately | 25.00% | |||||||||
Percentage of the total distribution to be deferred in accordance with the plan | 75.00% | |||||||||
Represents the period within which total distribution will be paid. | interim or final trigger date occurs within the first 30B months from the effective date, 25% of the total distribution will be paid immediately and the remaining 75% will be deferred and paid at a future date as described in the Plan. For final trigger dates occurring during the last 18B months but before the end of the Plan, total distribution will be paid immediately. | |||||||||
Payments under share-based compensation plan | 13,000,000 | 4,500,000 | 0 | |||||||
Supplemental Employee Incentive Plan | Interim trigger date | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Percentage of eligible employee's base salary for interim distribution | 20.00% | |||||||||
Supplemental Employee Incentive Plan | Final trigger date | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Total percentage of salary eligible for final distribution if final trigger is achieved | 50.00% | |||||||||
Incremental percentage of salary eligible for final distribution if company paid interim distributions upon achievement of the interim trigger | 30.00% | |||||||||
SEIP II | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Payments under share-based compensation plan | 0 | |||||||||
SEIP III | Interim trigger date occurs by June 30, 2014 | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Interim goal price (in dollars per share) | $25 | $25 | ||||||||
SEIP III | Interim trigger date occurs by June 30, 2014 | February 2013 Trigger Achievement | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Distribution to be made to company's employees due to achievement of interim goal price of $25 per share | 6,800,000 | |||||||||
Percentage of total interim distribution paid in February | 25.00% | |||||||||
Current distribution to be made to company's employees due to achievement of interim goal price of $25 per share | 1,700,000 | |||||||||
Percentage of total interim distribution deferred | 75.00% | |||||||||
Deferred distribution to be made to company's employees due to achievement of interim goal price of $25 per share in August 2014 | 4,900,000 | |||||||||
SEIP III | Final trigger date occurs by June 30, 2016 | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Percentage of the total distribution to be deferred in accordance with the plan | 75.00% | |||||||||
Final goal price (in dollars per share) | $37.50 | $37.50 | ||||||||
Distribution to be made to the company's employees due to achievement of interim goal price of $25 per share | 11,100,000 | |||||||||
Percentage of the total distribution paid in September 2013 | 25.00% | |||||||||
Current distribution to be made to the company's employees due to achievement of final goal price of $37.50 per share | 2,800,000 | |||||||||
Deferred distribution to be made to the company's employees due to achievement of final goal price of $37.50 per share in August 2014 | 8,100,000 | |||||||||
SEIP IV | ||||||||||
Assumptions (as a percent) | ||||||||||
Stock price volatility | 33.40% | 38.00% | 39.50% | |||||||
Risk free rate of return | 1.00% | 1.10% | 0.50% | |||||||
Annual salary increase rate | 4.00% | 4.00% | 4.00% | |||||||
Annual turnover rate | 4.60% | 4.60% | 6.10% | |||||||
SEIP IV | Interim trigger date occurs by September 30, 2015 | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Interim goal price (in dollars per share) | $55 | |||||||||
SEIP IV | Final trigger date occurs by September 30, 2017 | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Final goal price (in dollars per share) | $80 | |||||||||
Performance Share Awards | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Stock based compensation expense | 20,800,000 | 30,900,000 | 24,600,000 | |||||||
Unamortized compensation expense | 18,200,000 | |||||||||
Unrecognized compensation expense recognition period | 1 year 10 months 24 days | |||||||||
Aggregate intrinsic value | 62,000,000 | |||||||||
Weighted-average remaining contractual term of non-vested shares | 10 months 28 days | |||||||||
Number of types of performance shares awards for which performance goal period ended | 2 | |||||||||
Subsequent event | Employee Performance Share Awards | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Number of years over which performance criteria is to be met | 3 years | |||||||||
Number of criteria considered for awarding performance shares | 3 | |||||||||
Certified achievement, shares issuable | 504,620 | |||||||||
Certified achievement, grant date fair value of award | 8,900,000 | |||||||||
Subsequent event | TSR Performance Share Awards | ||||||||||
Stock-Based Compensation arrangements | ||||||||||
Certified achievement, shares issuable | 234,922 | |||||||||
Certified achievement, grant date fair value of award | 3,300,000 | |||||||||
Performance share cash award in addition to shares | $7,000,000 |
StockBased_Compensation_Detail5
Stock-Based Compensation (Details 6) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
Deferred Compensation Plan | |
Decrease in rabbi trust deferred compensation liability | $4.30 |
Deferred Performance Shares | |
Deferred Compensation Plan | |
Number of common stock deferred into the rabbi trust (in shares) | 534,174 |
Number of shares sold | 0 |
Earnings_per_Common_Share_Deta
Earnings per Common Share (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Weighted-average sharesbbasic | 415,840 | 420,188 | 419,075 |
Dilution effect of stock options, stock appreciation rights and stock awards at end of period (in shares) | 1,761 | 2,187 | 2,912 |
Weighted-average sharesbdiluted | 417,601 | 422,375 | 421,987 |
Weighted-average shares excluded from diluted earnings per share due to the anti-dilutive effect | 20 | 5 | 85 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive (Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in accumulated other comprehensive income (loss) by component, net of tax | |||
Balance at beginning of period | ($8,361) | $23,880 | $104,547 |
Other comprehensive income (loss) before reclassifications | -80,500 | 1,921 | 55,073 |
Amounts reclassified from accumulated other comprehensive income (loss) | 86,710 | -34,162 | -135,740 |
Net current-period other comprehensive income (loss) | 6,210 | -32,241 | -80,667 |
Balance at end of period | -2,151 | -8,361 | 23,880 |
Net Gains (Losses) on Cash Flow Hedges | |||
Changes in accumulated other comprehensive income (loss) by component, net of tax | |||
Balance at beginning of period | -6,551 | 30,717 | 121,358 |
Other comprehensive income (loss) before reclassifications | -80,175 | -2,720 | 53,815 |
Amounts reclassified from accumulated other comprehensive income (loss) | 86,726 | -34,548 | -144,456 |
Net current-period other comprehensive income (loss) | 6,551 | -37,268 | -90,641 |
Balance at end of period | 0 | -6,551 | 30,717 |
Defined Benefit Pension and Postretirement Benefits | |||
Changes in accumulated other comprehensive income (loss) by component, net of tax | |||
Balance at beginning of period | -1,810 | -6,837 | -16,811 |
Other comprehensive income (loss) before reclassifications | -325 | 4,641 | 1,258 |
Amounts reclassified from accumulated other comprehensive income (loss) | -16 | 386 | 8,716 |
Net current-period other comprehensive income (loss) | -341 | 5,027 | 9,974 |
Balance at end of period | ($2,151) | ($1,810) | ($6,837) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive (Loss) (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | |||
Natural gas revenues | $1,590,625 | $1,405,262 | $934,134 |
Crude oil and condensate revenues | 313,889 | 291,418 | 227,933 |
Income before income taxes | 32,401 | 485,538 | 237,840 |
Tax expense | 72,067 | -205,765 | -106,110 |
Net income | 104,468 | 279,773 | 131,730 |
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 | -144,177 | 56,361 | 222,199 |
Tax expense | 57,467 | -22,199 | -86,459 |
Net income | -86,710 | 34,162 | 135,740 |
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 | -143,577 | 52,733 | 225,108 |
Crude oil and condensate revenues | -626 | 4,269 | 11,218 |
Amortization of net (gain) loss | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Line items in income statement impacted by reclassifications out of accumulated other comprehensive income | |||
Amortization of prior service cost | 0 | 0 | -221 |
Amortization of net (gain) loss | $26 | ($641) | ($13,906) |
Additional_Balance_Sheet_Infor2
Additional Balance Sheet Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts receivable, net | ||
Trade accounts | $227,835 | $215,361 |
Joint interest accounts | 2,245 | 7,261 |
Income taxes receivable | 3,612 | 922 |
Other accounts | 6,515 | 746 |
Accounts receivable, gross | 240,207 | 224,290 |
Allowance for doubtful accounts | -1,198 | -1,814 |
Accounts receivable, net | 239,009 | 222,476 |
Inventories | ||
Natural gas in storage | 3,281 | 9,056 |
Tubular goods and well equipment | 10,675 | 8,396 |
Other accounts | 70 | 16 |
Other current assets | ||
Prepaid balances and other | 1,855 | 2,587 |
Other assets current | 1,855 | 2,587 |
Other assets | ||
Deferred compensation plan | 13,115 | 12,507 |
Debt issuance cost | 17,349 | 16,476 |
Other accounts | 65 | 79 |
Other assets | 30,529 | 29,062 |
Accounts payable | ||
Trade accounts | 54,949 | 26,023 |
Natural gas purchases | 2,407 | 2,052 |
Royalty and other owners | 97,298 | 79,150 |
Accrued capital costs | 222,426 | 146,899 |
Taxes other than income | 16,806 | 13,677 |
Drilling advances | 88 | 14,093 |
Other accounts | 6,102 | 6,907 |
Accounts payable current | 400,076 | 288,801 |
Accrued liabilities | ||
Employee benefits | 22,815 | 43,599 |
Taxes other than income | 7,128 | 6,894 |
Interest payable | 30,677 | 20,211 |
Other accounts | 3,049 | 2,897 |
Accrued liabilities | 63,669 | 73,601 |
Other liabilities | ||
Deferred compensation plan | 28,932 | 33,211 |
Other accounts | 10,675 | 13,043 |
Other liabilities | $39,607 | $46,254 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Cash Flow Information [Abstract] | |||
Interest | $58,487 | $63,279 | $64,970 |
Income taxes | $77,029 | $35,281 | $22,501 |