Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 05, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ABRAXAS PETROLEUM CORP | |
Entity Central Index Key | 867,665 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 106,346,001 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 0 | $ 3,772 |
Accounts receivable: | ||
Joint owners | 1,639 | 5,648 |
Oil and gas production sales | 7,556 | 15,308 |
Other | 2,816 | 647 |
Total accounts receivable | 12,011 | 21,603 |
Derivative asset | 12,881 | 12,214 |
Other current assets | 696 | 843 |
Total current assets | 25,588 | 38,432 |
Oil and gas properties, full cost method of accounting: | ||
Proved | 770,415 | 716,922 |
Other property and equipment | 41,358 | 40,683 |
Total | 811,773 | 757,605 |
Less accumulated depreciation, depletion, and amortization | (527,353) | (434,726) |
Total property and equipment, net | 284,420 | 322,879 |
Deferred financing fees, net | 1,807 | 2,216 |
Derivative asset | 10,353 | 10,981 |
Other assets | 255 | 391 |
Total assets | 322,423 | 374,899 |
Current liabilities: | ||
Accounts payable | 25,619 | 63,549 |
Joint interest oil and gas production payable | 6,722 | 14,423 |
Accrued interest | 99 | 72 |
Other accrued expenses | 1,730 | 1,006 |
Derivative liability | 0 | 13 |
Current maturities of long-term debt | 2,300 | 2,235 |
Total current liabilities | 36,470 | 81,298 |
Long-term debt – less current maturities | 124,991 | 76,554 |
Other liabilities | 57 | 57 |
Future site restoration | 9,847 | 9,495 |
Total liabilities | $ 171,365 | $ 167,404 |
Commitments and contingencies | ||
Stockholders’ Equity: | ||
Preferred stock, par value $.01 per share – authorized 1,000,000 shares; -0- shares issued and outstanding | $ 0 | $ 0 |
Common stock, par value $0.01 per share, authorized 200,000,000 shares; 106,346,001 and 106,186,678 issued and outstanding, respectively | 1,064 | 1,062 |
Additional paid-in capital | 313,025 | 309,773 |
Accumulated deficit | (163,031) | (103,340) |
Total stockholders’ equity | 151,058 | 207,495 |
Total liabilities and stockholders’ equity | $ 322,423 | $ 374,899 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Stockholders’ Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 106,346,001 | 106,186,678 |
Common stock, shares outstanding (in shares) | 106,346,001 | 106,186,678 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Oil and gas production revenues | $ 16,075 | $ 43,865 | $ 53,658 | $ 102,521 |
Other | 2 | 9 | 24 | 63 |
Total revenue | 16,077 | 43,874 | 53,682 | 102,584 |
Operating costs and expenses: | ||||
Lease operating | 5,236 | 7,131 | 17,806 | 18,361 |
Production taxes | 1,569 | 3,744 | 5,255 | 8,786 |
Depreciation, depletion, and amortization | 10,165 | 13,836 | 31,044 | 30,441 |
Proved property impairment | 59,891 | 0 | 59,891 | 0 |
General and administrative (including stock-based compensation of $835, $582, $3,085 and $2,050, respectively) | 2,654 | 2,379 | 9,190 | 7,915 |
Operating expenses | 79,515 | 27,090 | 123,186 | 65,503 |
Operating (loss) income | (63,438) | 16,784 | (69,504) | 37,081 |
Other (income) expense: | ||||
Interest income | 0 | 0 | (1) | (1) |
Interest expense | 992 | 548 | 2,784 | 1,927 |
Amortization of deferred financing fees | 161 | 150 | 481 | 779 |
(Gain) loss on derivative contracts - Realized | (1,745) | 534 | (6,899) | 2,624 |
(Gain) on derivative contracts - Unrealized | (10,474) | (9,979) | (6,198) | (1,899) |
Total other (income) expense | (11,066) | (8,755) | (9,833) | 3,422 |
(Loss) income from continuing operations before income tax | (52,372) | 25,539 | (59,671) | 33,659 |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Net (loss) income from continuing operations | (52,372) | 25,539 | (59,671) | 33,659 |
Net loss from discontinued operations | 0 | (140) | (20) | (522) |
Net (loss) income | $ (52,372) | $ 25,399 | $ (59,691) | $ 33,137 |
Net (loss) income per common share - basic | ||||
Continuing operations (in dollars per share) | $ (0.50) | $ 0.24 | $ (0.57) | $ 0.35 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.01) |
Total (in dollars per share) | (0.50) | 0.24 | (0.57) | 0.34 |
Net (loss) income per common share - diluted | ||||
Continuing operations (in dollars per share) | (0.50) | 0.24 | (0.57) | 0.34 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.01) |
Total (in dollars per share) | $ (0.50) | $ 0.24 | $ (0.57) | $ 0.33 |
Denominator for basic earnings per share – weighted-average common shares outstanding (shares) | 104,614 | 104,408 | 104,561 | 96,742 |
Weighted Average Number of Shares Outstanding, Diluted | 104,614 | 107,671 | 104,561 | 99,531 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating costs and expenses: | ||||
Stock-based compensation | $ 835 | $ 582 | $ 3,085 | $ 2,050 |
CONSOLIDATED STATEMENTS OF OTHE
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (52,372) | $ 25,399 | $ (59,691) | $ 33,137 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 0 | (35) | 0 | (67) |
Other comprehensive income (loss) | 0 | (35) | 0 | (67) |
Comprehensive (loss) income | $ (52,372) | $ 25,364 | $ (59,691) | $ 33,070 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||
Net (loss) income | $ (59,691) | $ 33,137 |
Net loss from discontinued operations | (20) | (522) |
Net (loss) from discontinued operations - net of tax | (59,671) | 33,659 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Change in derivative fair value | (4,662) | (2,383) |
Monetization of derivative contracts | 4,610 | 0 |
Depreciation, depletion, and amortization | 31,044 | 30,441 |
Proved property impairment | 59,891 | 0 |
Amortization of deferred financing fees | 481 | 779 |
Accretion of future site restoration | 426 | 419 |
Stock-based compensation | 3,085 | 2,050 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 9,592 | 3,843 |
Other assets | 283 | (151) |
Accounts payable and accrued expenses | (44,954) | (10,646) |
Net cash provided by continuing operations | 125 | 58,011 |
Net cash (used in) provided by discontinued operations | (20) | 2 |
Net cash provided by continuing operations | 105 | 58,013 |
Investing Activities | ||
Capital expenditures, including purchases and development of properties | (52,614) | (137,462) |
Proceeds from the sale of oil and gas properties | 138 | 5,999 |
Net cash used in continuing operations | (52,476) | (131,463) |
Net cash provided by discontinued operations | 0 | 335 |
Net cash used in investing activities | (52,476) | (131,128) |
Financing Activities | ||
Proceeds from long-term borrowings | 54,000 | 64,000 |
Payments on long-term borrowings | (5,498) | (46,437) |
Proceeds from Issuance of Common Stock | 0 | 53,755 |
Deferred financing fees | (72) | (946) |
Exercise of stock options | 169 | 255 |
Other | 0 | 192 |
Net cash provided by continuing operations | 48,599 | 70,819 |
Net cash (used in) discontinued operations | 0 | (220) |
Net cash provided by financing activities | 48,599 | 70,599 |
Effect of exchange rate changes on cash - discontinued operations | 0 | (3) |
Decrease in cash and cash equivalents | (3,772) | (2,519) |
Cash and cash equivalents at beginning of period | 3,772 | 5,205 |
Cash and cash equivalents at end of period | 0 | 2,686 |
Supplemental disclosure of cash flow information: | ||
Interest Paid | $ 2,756 | $ 1,899 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Basis of Presentation The accounting policies followed by Abraxas Petroleum Corporation and its subsidiaries (the “Company”) are set forth in the notes to the Company’s audited consolidated financial statements in the Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 13, 2015. Such policies have been continued without change. Also, refer to the notes to those financial statements for additional details of the Company’s financial condition, results of operations, and cash flows. All material items included in those notes have not changed except as a result of normal transactions in the interim, or as disclosed within this report. The accompanying interim condensed consolidated financial statements have not been audited by our independent registered public accountants, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the financial position and results of operations. Any and all adjustments are of a normal and recurring nature. Although management believes the unaudited interim related disclosures in these condensed consolidated financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the SEC. The results of operations and the cash flows for the period ended September 30, 2015 are not necessarily indicative of the results to be expected for the full year. The condensed consolidated financial statements included herein should be read in conjunction with the consolidated audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Consolidation Principles The terms “Abraxas,” “Abraxas Petroleum,” “we,” “us,” “our” or the “Company” refer to Abraxas Petroleum Corporation and all of its subsidiaries, including Raven Drilling, LLC (“Raven Drilling”). Rig Accounting In accordance with SEC Regulation S-X, no income is to be recognized in connection with contractual drilling services performed in connection with properties in which the Company or its affiliates hold an ownership, or other economic interest. Any income not recognized as a result of this limitation is to be credited to the full cost pool and recognized through lower amortization as reserves are produced. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. New Accounting Standards and Disclosures Recent Accounting Developments Income Statement - Extraordinary and Unusual Items In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, Income Statement - Extraordinary and Unusual Items . The ASU removes the concept of extraordinary items from GAAP. Under existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is of an unusual nature and occurs infrequently. This separate, net-of-tax presentation will no longer be allowed, and the pronouncement is effective for interim and annual reporting periods beginning after December 15, 2015. This guidance is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. Presentation of Debt Issuance Costs In April 2015, the FASB issued Simplifying the Presentation of Debt Issuance Costs, Subtopic 835-30 (ASU No. 2015-03), which amends existing guidance to require the presentation of debt issuance costs on the balance sheet as a deduction from the carrying amount of the related debt, instead of an asset. This guidance will be effective for interim and annual reporting periods beginning after December 15, 2015, and early adoption is permitted. Other than the prescribed reclassification of assets to an offset of debt on the consolidated balance sheets, Abraxas does not expect the implementation of ASU 2015-03 to have a material impact on its consolidated financial statements. Stock-based Compensation and Option Plans Stock Options The Company currently utilizes a standard option-pricing model (i.e., Black-Scholes) to measure the fair value of stock options granted to employees and directors. The following table summarizes the Company’s stock-based compensation expense related to stock options for the periods presented: Three Months Ended Nine Months Ended 2015 2014 2015 2014 $ 463 $ 361 $ 1,917 $ 1,475 The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2015 (shares in thousands): Number of Shares (thousands) Weighted Average Option Exercise Price Per Share Weighted Average Grant Date Fair Value Per Share Outstanding, December 31, 2014 5,885 $ 2.88 $ 2.06 Granted 1,601 $ 3.22 $ 2.37 Exercised (164 ) $ 1.03 $ 0.71 Cancelled (433 ) $ 4.45 $ 3.67 Outstanding, September 30, 2015 6,889 $ 2.90 $ 2.06 Additional information related to stock options at September 30, 2015 and December 31, 2014 is as follows: September 30, December 31, 2014 Options exercisable 4,362 4,112 As of September 30, 2015 , 470,325 of the vested shares are in the money based on a closing price of $1.28 . As of September 30, 2015 , there was approximately $4.2 million of unamortized compensation expense related to outstanding stock options that will be recognized in 2015 through 2018. Restricted Stock Awards Restricted stock awards are awards of common stock that are subject to restrictions on transfer and to a risk of forfeiture if the awardee terminates employment with the Company prior to the lapse of the restrictions. The fair value of such stock was determined using the closing price on the grant date and compensation expense is recorded over the applicable vesting periods. The following table summarizes the Company’s restricted stock activity for the nine months ended September 30, 2015 : Number of Shares (thousands) Weighted Average Grant Date Fair Value Per Share Unvested, December 31, 2014 1,776 $ 3.43 Granted — — Vested/Released (118 ) 3.37 Forfeited (5 ) 2.56 Unvested, September 30, 2015 1,653 $ 3.44 The following table summarizes the Company’s stock-based compensation expense related to restricted stock for the periods presented: Three Months Ended Nine Months Ended 2015 2014 2015 2014 $ 372 $ 221 $ 1,168 $ 575 As of September 30, 2015 , there was approximately $3.6 million of unamortized compensation expense relating to outstanding restricted shares that will be recognized in 2015 through 2018. Oil and Gas Properties The Company follows the full cost method of accounting for oil and gas properties. Under this method, all direct costs and certain indirect costs associated with the acquisition of properties and successful, as well as unsuccessful, exploration and development activities are capitalized. Depreciation, depletion, and amortization of capitalized oil and gas properties and estimated future development costs, excluding unproved properties, are based on the unit-of-production method based on proved reserves. Net capitalized costs of oil and gas properties, less related deferred taxes, are limited by country, to the lower of the unamortized capitalized cost or the cost ceiling. The cost ceiling is calculated as PV-10, plus the cost of properties not being amortized, if any, plus the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any, less related income taxes. We calculate the projected income tax effect using the “short-cut” method for the cost ceiling test calculation. Costs in excess of the cost ceiling are charged to proved property impairment expense. No gain or loss is recognized upon sale or disposition of oil and gas properties, except where the sale or disposition causes a significant change in the relationship between capitalized cost and the estimated quantity of proved reserves. We apply the full cost ceiling test on a quarterly basis on the date of the latest balance sheet presented. At September 30, 2015 , our net capitalized costs of oil and gas properties exceeded the cost ceiling of our estimated proved reserves by approximately $59.9 million , resulting in the recognition of a proved property impairment of $59.9 million for the quarter ended September 30, 2015 . Based on the first-day-of-the-month prices over the eleven months ended November 1, 2015, we anticipate recording another write-down in the carrying value of our oil and gas properties in the fourth quarter of 2015. Further write-downs in subsequent quarters will occur if the trailing 12-month commodity prices continue to fall as compared to the commodity prices used in prior quarters. Restoration, Removal and Environmental Liabilities The Company is subject to extensive federal, state and local environmental laws and regulations. These laws regulate the discharge of materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum substances at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefit are expensed. Liabilities for expenditures of a non-capital nature are recorded when environmental assessments and/or remediation is probable, and the costs can be reasonably estimated. Such liabilities are generally undiscounted unless the timing of cash payments for the liability or component are fixed or reliably determinable. The Company accounts for asset retirement obligations based on the guidance of ASC 410 which addresses accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. ASC 410 requires that the fair value of a liability for an asset's retirement obligation be recorded in the period in which it is incurred and the corresponding cost capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depreciated over the estimated useful life of the related asset. For all periods presented, we have included estimated future costs of abandonment and dismantlement in our full cost amortization base and amortize these costs as a component of our depletion expense in the accompanying condensed consolidated financial statements. The following table summarizes the Company’s asset retirement obligation transactions for the nine months ended September 30, 2015 and the year ended December 31, 2014: September 30, December 31, 2014 Beginning asset retirement obligation $ 9,495 $ 9,888 New wells placed on production and other 214 444 Deletions related to property disposals and plugging costs (332 ) (1,318 ) Accretion expense 426 559 Revisions and other 44 198 Discontinued operations — (276 ) Ending asset retirement obligation $ 9,847 $ 9,495 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company records income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the tax rates and laws expected to be in effect when the differences are expected to reverse. For the nine months ended September 30, 2015 , there was no current or deferred income tax expense or benefit due to loss carryforwards. Valuation allowances have been recorded against such benefits in prior periods. The Company accounts for uncertain tax positions under the provisions of ASC 740-10. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of September 30, 2015 , the Company did not have any accrued interest or penalties related to uncertain tax positions. The tax years 2004 through 2014 remain open to examination by the tax jurisdictions to which the Company is subject. At December 31, 2014, the Company had, subject to the limitation discussed below, $150.8 million of net operating loss carryforwards for U.S. tax purposes. The loss carryforward will expire in varying amounts through 2034, if not utilized. Uncertainties exist as to the future utilization of the operating loss carryforwards under the criteria set forth under ASC 740-10 Income Taxes . Therefore, we have established a valuation allowance of $60.1 million for deferred tax assets at December 31, 2014. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following is a description of the Company’s debt as of September 30, 2015 and December 31, 2014, respectively: September 30, 2015 December 31, 2014 (In thousands) Senior secured credit facility $ 120,000 $ 70,000 Rig loan agreement 3,128 4,456 Real estate lien note 4,163 4,333 127,291 78,789 Less current maturities (2,300 ) (2,235 ) $ 124,991 $ 76,554 Credit Facility We have a senior secured credit facility with Société Générale, as administrative agent and issuing lender, and certain other lenders, which we refer to as the credit facility. As of September 30, 2015 , $120.0 million was outstanding under the credit facility. The credit facility has a maximum commitment of $300.0 million and availability is subject to a borrowing base. At September 30, 2015 , we had a borrowing base of $165.0 million . The borrowing base is determined semi-annually by the lenders based upon our reserve reports, one of which must be prepared by our independent petroleum engineers and one of which may be prepared internally. The amount of the borrowing base is calculated by the lenders based upon their valuation of our proved reserves securing the facility utilizing these reserve reports and their own internal decisions. In addition, the lenders, in their sole discretion, are able to make one additional borrowing base redetermination during any six -month period between scheduled redeterminations and we are able to request one redetermination during any six-month period between scheduled redeterminations. The borrowing base was reaffirmed in August 2015, the next redetermination will be in April 2016. The borrowing base will be automatically reduced in connection with any sales of producing properties with a market value of 5% or more of our then-current borrowing base and in connection with any hedge termination which could reduce the collateral value by 5% or more. Our borrowing base can never exceed the $300.0 million maximum commitment amount. Outstanding amounts under the credit facility bear interest at (a) the greater of (1) the reference rate announced from time to time by Société Générale, (2) the Federal Funds Rate plus 0.5% , and (3) a rate determined by Société Générale as the daily one-month LIBOR plus, in each case, (b) 0.75% — 1.75% , depending on the utilization of the borrowing base, or, if we elect LIBOR plus 1.75% — 2.75% , depending on the utilization of the borrowing base. At September 30, 2015 , the interest rate on the credit facility was 2.45% based on 1-month LIBOR borrowings and level of utilization. Subject to earlier termination rights and events of default, the stated maturity date of the credit facility is June 30, 2018 . Interest is payable quarterly on reference rate advances and not less than quarterly on LIBOR advances. We are permitted to terminate the credit facility and are able, from time to time, to permanently reduce the lenders’ aggregate commitment under the credit facility in compliance with certain notice and dollar increment requirements. Each of our subsidiaries has guaranteed our obligations under the credit facility on a senior secured basis. Obligations under the credit facility are secured by a first priority perfected security interest, subject to certain permitted encumbrances, in all of our and our subsidiary guarantors’ material property and assets, other than Raven Drilling. Under the credit facility, we are subject to customary covenants, including certain financial covenants and reporting requirements. We are required to maintain a current ratio, as of the last day of each quarter of not less than 1.00 to 1.00 and an interest coverage ratio of not less than 2.50 to 1.00. We are also required as of the last day of each quarter to maintain a total debt to EBITDAX ratio of not more than 4.00 to 1.00. The current ratio is defined as the ratio of consolidated current assets to consolidated current liabilities. For the purposes of this calculation, current assets include the portion of the borrowing base which is undrawn but excludes any cash deposited with a counter-party to a hedging arrangement and any assets representing a valuation account arising from the application of ASC 815 and ASC 410-20 and current liabilities exclude the current portion of long-term debt and any liabilities representing a valuation account arising from the application of ASC 815 and ASC 410-20. The interest coverage ratio is defined as the ratio of consolidated EBITDAX to consolidated interest expense for the four fiscal quarters ended on the calculation date. For the purposes of this calculation, EBITDAX is defined as the sum of consolidated net income plus interest expense, oil and gas exploration expenses, income, franchise or margin taxes, depreciation, amortization, depletion and other non-cash charges including non-cash charges resulting from the application of ASC 718, ASC 815 and ASC 410-20 plus all realized net cash proceeds arising from the settlement or monetization of any hedge contracts plus expenses incurred in connection with the negotiation, execution, delivery and performance of the Credit Facility plus expenses incurred in connection with any acquisition permitted under the Credit Facility plus expenses incurred in connection with any offering of senior unsecured notes, subordinated debt or equity plus up to $1.0 million of extraordinary expenses in any 12-month period plus extraordinary losses minus all non-cash items of income which were included in determining consolidated net income, including all non-cash items resulting from the application of ASC 815 and ASC 410-20. Interest expense includes total interest, letter of credit fees and other fees and expenses incurred in connection with any debt. The total debt to EBITDAX ratio is defined as the ratio of total debt to consolidated EBITDAX for the four fiscal quarters ended on the calculation date. For the purposes of this calculation, total debt is the outstanding principal amount of debt, excluding debt associated with the office building, Raven Drilling’s rig loan and obligations with respect to surety bonds and derivative contracts . At September 30, 2015 we were in compliance with all of our debt covenants. As of September 30, 2015 , the interest coverage ratio was 19.46 to 1.00, the total debt to EBITDAX ratio was 2.16 to 1.00, and our current ratio was 1.69 to 1.00. The credit facility contains a number of covenants that, among other things, restrict our ability to: • incur or guarantee additional indebtedness; • transfer or sell assets; • create liens on assets; • engage in transactions with affiliates other than on an “arm’s length” basis; • make any change in the principal nature of our business; and • permit a change of control. The credit facility also contains customary events of default, including nonpayment of principal or interest, violations of covenants, cross default and cross acceleration to certain other indebtedness, bankruptcy and material judgments and liabilities. Rig Loan Agreement On September 19, 2011, Raven Drilling entered into a rig loan agreement, secured by our Oilwell 2,000 HP diesel electric drilling rig (the “Collateral”). The original principal amount of the note was $7.0 million and bears interest at 4.26% . The note is payable in monthly interest and principal payments in the amount of $179,695 . Subject to earlier prepayment provisions and events of default, the stated maturity date of the note is February 14, 2017 . As of September 30, 2015 and December 31, 2014 , $3.1 million and $4.5 million , respectively, was outstanding under the rig loan agreement. The Company has guaranteed Raven Drilling’s obligations under the rig loan agreement and associated note. Obligations under the rig loan agreement are secured by a first priority perfected security interest, subject to certain permitted encumbrances, in the Collateral. Real Estate Lien Note We have a real estate lien note secured by a first lien deed of trust on the property and improvements which serves as our corporate headquarters. The note bears interest at a fixed rate of 4.25% and is payable in monthly installments of $ 34,354 . Beginning August 20, 2018, the interest rate will adjust to the bank's then current prime rate plus 1.00% with a maximum rate of 7.25% . The maturity date of the note is July 20, 2023 . As of September 30, 2015 and December 31, 2014 , $4.2 million and $4.3 million , respectively, was outstanding on the note. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands, except per share data) Numerator: Net (loss) income from continuing operations $ (52,372 ) $ 25,539 $ (59,671 ) $ 33,659 Net loss from discontinued operations — (140 ) (20 ) (522 ) (52,372 ) 25,399 (59,691 ) 33,137 Denominator: Denominator for basic earnings per share – weighted-average common shares outstanding 104,614 104,408 104,561 96,742 Effect of dilutive securities: Stock options and restricted shares — 3,263 — 2,789 Denominator for diluted earnings per share – adjusted weighted-average shares and assumed exercise of options and restricted shares 104,614 107,671 104,561 99,531 Net income (loss) per common share - basic Continuing operations $ (0.50 ) $ 0.24 $ (0.57 ) $ 0.35 Discontinued operations — — — (0.01 ) $ (0.50 ) $ 0.24 $ (0.57 ) $ 0.34 Net income (loss) per common share - diluted Continuing operations $ (0.50 ) $ 0.24 $ (0.57 ) $ 0.34 Discontinued operations — — — (0.01 ) $ (0.50 ) $ 0.24 $ (0.57 ) $ 0.33 Basic earnings per share, excluding any dilutive effects of stock options and unvested restricted stock, is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted income (loss) per share is computed similar to basic; however diluted income (loss) per share reflects the assumed conversion of all potentially dilutive securities. For the three and nine months ended September 30, 2015 , 1,971 and 2,505 potential shares related to stock options and unvested restricted shares, respectively were excluded from the calculation of diluted income (loss) per share since their inclusion would have been anti-dilutive due to losses incurred in the periods. |
Hedging Program and Derivatives
Hedging Program and Derivatives | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Program and Derivatives | Hedging Program and Derivatives The derivative instruments we utilize are based on index prices that may and often do differ from the actual oil and gas prices realized in our operations. Our derivative contracts do not qualify for hedge accounting as prescribed by ASC 815; therefore, fluctuations in the market value of the derivative contracts are recognized in earnings during the current period. There are no netting agreements relating to these derivative contracts and there is no policy to offset. The following table sets forth the summary position of our derivative contracts as of September 30, 2015 : Fixed price swaps: Oil - WTI Gas Contract Periods Daily Volume (Bbl) Swap Price (per Bbl) Daily Volume (Mcf) Swap Price (per Mcf) 2015 (October - December) — $ — 1,450 $ 4.04 2016 948 $ 84.10 — $ — 2017 608 $ 78.55 — $ — Collar contracts combined with short puts (three-way collar) Oil - WTI Contract Periods Daily Volume (Bbl) Floor (Long Put) Ceiling (Short Call) Short Put 2015 (October - December) 2,000 $ 55.00 $ 70.00 $ — 2016 1,000 $ 60.00 $ 71.00 $ 45.00 The following table illustrates the impact of derivative contracts on the Company’s balance sheet: Fair Value of Derivative Instruments as of September 30, 2015 Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity price derivatives Derivatives – current $ 12,881 Derivatives – current $ — Commodity price derivatives Derivatives – long-term 10,353 Derivatives – long-term — $ 23,234 $ — Fair Value of Derivative Instruments as of December 31, 2014 Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity price derivatives Derivatives – current $ 12,214 Derivatives – current $ 13 Commodity price derivatives Derivatives – long-term 10,981 Derivatives – long-term — $ 23,195 $ 13 Gains and losses from derivative activities are reflected as “(Gain) loss on derivative contracts” in the accompanying Condensed Consolidated Statements of Operations. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The Company applies ASC 820-10 which defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. Fair Value Hierarchy —ASC 820-10 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: • Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company is further required to assess the creditworthiness of the counter-party to the derivative contract. The results of the assessment of non-performance risk, based on the counter-party’s credit risk, could result in an adjustment of the carrying value of the derivative instrument. The following tables sets forth information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 , and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of September 30, 2015 Assets: NYMEX Fixed Price Derivative contracts $ — $ 17,889 $ — $ 17,889 NYMEX Collars — 5,345 — 5,345 Total Assets $ — $ 23,234 $ — $ 23,234 Liabilities: NYMEX Fixed Price Derivative contracts $ — $ — $ — $ — Total Liabilities $ — $ — $ — $ — Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2014 Assets: NYMEX Fixed Price Derivative contracts $ — $ 23,195 $ — $ 23,195 Total Assets $ — $ 23,195 $ — $ 23,195 Liabilities: NYMEX Fixed Price Derivative contracts $ — $ 13 $ — $ 13 Total Liabilities $ — $ 13 $ — $ 13 The Company’s derivative contracts consist of NYMEX-based fixed price swaps and three-way collar contracts. Under fixed price swaps, we receive a fixed price for our production and pay a variable market price to the contract counter-party. Three-way collar contracts combine a long put, a short put and a short call. Under a collar, we pay the counterparty if the market price is above the ceiling price (short call) and the counterparty pays us if the market price is below the floor price (long put). The use of the long put combined with a short put allows us to sell a call at a higher price, thus establishing a higher ceiling and limits our exposure to future settlement payments while also restricting our downward risk to the difference between the long put and the short put if the price drops below the price of the short put. This allows us to settle our contracts for the market price plus the spread between the short put and the long put in a case where the market price has fallen below the short put fixed price. The NYMEX-based fixed price derivative contracts and three-way collars are indexed to NYMEX futures contracts, which are actively traded, for the underlying commodity and are commonly used in the energy industry. A number of financial institutions and large energy companies act as counter-parties to these type of derivative contracts. As the fair value of these derivative contracts is based on a number of inputs, including contractual volumes and prices stated in each derivative contract, current and future NYMEX commodity prices, and quantitative models that are based upon readily observable market parameters that are actively quoted and can be validated through external sources, we have characterized these derivative contracts as Level 2. In order to verify the third party valuation, we enter the various inputs into a model and compare our results to the third party for reasonableness. Other Financial Instruments The carrying amounts of our cash, cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued liabilities approximate fair value because of the short-term maturities and/or liquid nature of these assets and liabilities. The carrying value of our debt approximates fair value as the interest rates are market rates and this debt is considered Level 2. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On October 31, 2014, the Company closed on the sale of its Canadian subsidiary, Canadian Abraxas Petroleum, ULC ("Canadian Abraxas"). The sale was based on management's decision to discontinue Canadian operations due to continuing losses. Canadian Abraxas revenue, reported in discontinued operations for the three and nine months ended September 30, 2014 was $0.3 million and $1.1 million , respectively. Canadian Abraxas net loss, reported in discontinued operations for the three and nine months ended September 30, 2014 was $0.1 million and $0.5 million , respectively. |
Contingencies - Litigation
Contingencies - Litigation | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company is involved in litigation relating to claims arising out of its operations in the normal course of business. At September 30, 2015 , the Company was not involved in any legal proceedings that are expected, individually or in the aggregate, to have a material adverse effect on its financial position or results of operations. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Consolidation Principles The terms “Abraxas,” “Abraxas Petroleum,” “we,” “us,” “our” or the “Company” refer to Abraxas Petroleum Corporation and all of its subsidiaries, including Raven Drilling, LLC (“Raven Drilling”). |
Rig Accounting | Rig Accounting In accordance with SEC Regulation S-X, no income is to be recognized in connection with contractual drilling services performed in connection with properties in which the Company or its affiliates hold an ownership, or other economic interest. Any income not recognized as a result of this limitation is to be credited to the full cost pool and recognized through lower amortization as reserves are produced. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Share-Based Payments | Restricted Stock Awards Restricted stock awards are awards of common stock that are subject to restrictions on transfer and to a risk of forfeiture if the awardee terminates employment with the Company prior to the lapse of the restrictions. The fair value of such stock was determined using the closing price on the grant date and compensation expense is recorded over the applicable vesting periods. |
Restricted Stock Awards | Stock-based Compensation and Option Plans Stock Options The Company currently utilizes a standard option-pricing model (i.e., Black-Scholes) to measure the fair value of stock options granted to employees and directors. The following table summarizes the Company’s stock-based compensation expense related to stock options for the periods presented: Three Months Ended Nine Months Ended 2015 2014 2015 2014 $ 463 $ 361 $ 1,917 $ 1,475 The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2015 (shares in thousands): Number of Shares (thousands) Weighted Average Option Exercise Price Per Share Weighted Average Grant Date Fair Value Per Share Outstanding, December 31, 2014 5,885 $ 2.88 $ 2.06 Granted 1,601 $ 3.22 $ 2.37 Exercised (164 ) $ 1.03 $ 0.71 Cancelled (433 ) $ 4.45 $ 3.67 Outstanding, September 30, 2015 6,889 $ 2.90 $ 2.06 Additional information related to stock options at September 30, 2015 and December 31, 2014 is as follows: September 30, December 31, 2014 Options exercisable 4,362 4,112 As of September 30, 2015 , 470,325 of the vested shares are in the money based on a closing price of $1.28 . As of September 30, 2015 , there was approximately $4.2 million of unamortized compensation expense related to outstanding stock options that will be recognized in 2015 through 2018. Restricted Stock Awards Restricted stock awards are awards of common stock that are subject to restrictions on transfer and to a risk of forfeiture if the awardee terminates employment with the Company prior to the lapse of the restrictions. The fair value of such stock was determined using the closing price on the grant date and compensation expense is recorded over the applicable vesting periods. The following table summarizes the Company’s restricted stock activity for the nine months ended September 30, 2015 : Number of Shares (thousands) Weighted Average Grant Date Fair Value Per Share Unvested, December 31, 2014 1,776 $ 3.43 Granted — — Vested/Released (118 ) 3.37 Forfeited (5 ) 2.56 Unvested, September 30, 2015 1,653 $ 3.44 The following table summarizes the Company’s stock-based compensation expense related to restricted stock for the periods presented: Three Months Ended Nine Months Ended 2015 2014 2015 2014 $ 372 $ 221 $ 1,168 $ 575 As of September 30, 2015 , there was approximately $3.6 million of unamortized compensation expense relating to outstanding restricted shares that will be recognized in 2015 through 2018. |
Estimates of Proved Oil and Gas Reserves | Oil and Gas Properties The Company follows the full cost method of accounting for oil and gas properties. Under this method, all direct costs and certain indirect costs associated with the acquisition of properties and successful, as well as unsuccessful, exploration and development activities are capitalized. Depreciation, depletion, and amortization of capitalized oil and gas properties and estimated future development costs, excluding unproved properties, are based on the unit-of-production method based on proved reserves. Net capitalized costs of oil and gas properties, less related deferred taxes, are limited by country, to the lower of the unamortized capitalized cost or the cost ceiling. The cost ceiling is calculated as PV-10, plus the cost of properties not being amortized, if any, plus the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any, less related income taxes. We calculate the projected income tax effect using the “short-cut” method for the cost ceiling test calculation. Costs in excess of the cost ceiling are charged to proved property impairment expense. No gain or loss is recognized upon sale or disposition of oil and gas properties, except where the sale or disposition causes a significant change in the relationship between capitalized cost and the estimated quantity of proved reserves. We apply the full cost ceiling test on a quarterly basis on the date of the latest balance sheet presented. At September 30, 2015 , our net capitalized costs of oil and gas properties exceeded the cost ceiling of our estimated proved reserves by approximately $59.9 million , resulting in the recognition of a proved property impairment of $59.9 million for the quarter ended September 30, 2015 . Based on the first-day-of-the-month prices over the eleven months ended November 1, 2015, we anticipate recording another write-down in the carrying value of our oil and gas properties in the fourth quarter of 2015. Further write-downs in subsequent quarters will occur if the trailing 12-month commodity prices continue to fall as compared to the commodity prices used in prior quarters. |
Restoration, Removal and Environmental Liabilities | Restoration, Removal and Environmental Liabilities The Company is subject to extensive federal, state and local environmental laws and regulations. These laws regulate the discharge of materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum substances at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefit are expensed. Liabilities for expenditures of a non-capital nature are recorded when environmental assessments and/or remediation is probable, and the costs can be reasonably estimated. Such liabilities are generally undiscounted unless the timing of cash payments for the liability or component are fixed or reliably determinable. The Company accounts for asset retirement obligations based on the guidance of ASC 410 which addresses accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. ASC 410 requires that the fair value of a liability for an asset's retirement obligation be recorded in the period in which it is incurred and the corresponding cost capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depreciated over the estimated useful life of the related asset. For all periods presented, we have included estimated future costs of abandonment and dismantlement in our full cost amortization base and amortize these costs as a component of our depletion expense in the accompanying condensed consolidated financial statements. The following table summarizes the Company’s asset retirement obligation transactions for the nine months ended September 30, 2015 and the year ended December 31, 2014: September 30, December 31, 2014 Beginning asset retirement obligation $ 9,495 $ 9,888 New wells placed on production and other 214 444 Deletions related to property disposals and plugging costs (332 ) (1,318 ) Accretion expense 426 559 Revisions and other 44 198 Discontinued operations — (276 ) Ending asset retirement obligation $ 9,847 $ 9,495 |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Stock Options Activity and Related Compensation Expense | The following table summarizes the Company’s stock-based compensation expense related to stock options for the periods presented: Three Months Ended Nine Months Ended 2015 2014 2015 2014 $ 463 $ 361 $ 1,917 $ 1,475 The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2015 (shares in thousands): Number of Shares (thousands) Weighted Average Option Exercise Price Per Share Weighted Average Grant Date Fair Value Per Share Outstanding, December 31, 2014 5,885 $ 2.88 $ 2.06 Granted 1,601 $ 3.22 $ 2.37 Exercised (164 ) $ 1.03 $ 0.71 Cancelled (433 ) $ 4.45 $ 3.67 Outstanding, September 30, 2015 6,889 $ 2.90 $ 2.06 Additional information related to stock options at September 30, 2015 and December 31, 2014 is as follows: September 30, December 31, 2014 Options exercisable 4,362 4,112 |
Schedule of Unvested Restricted Stock Activity and Related Compensation Expense | The following table summarizes the Company’s restricted stock activity for the nine months ended September 30, 2015 : Number of Shares (thousands) Weighted Average Grant Date Fair Value Per Share Unvested, December 31, 2014 1,776 $ 3.43 Granted — — Vested/Released (118 ) 3.37 Forfeited (5 ) 2.56 Unvested, September 30, 2015 1,653 $ 3.44 The following table summarizes the Company’s stock-based compensation expense related to restricted stock for the periods presented: Three Months Ended Nine Months Ended 2015 2014 2015 2014 $ 372 $ 221 $ 1,168 $ 575 |
Asset Retirement Obligations | The following table summarizes the Company’s asset retirement obligation transactions for the nine months ended September 30, 2015 and the year ended December 31, 2014: September 30, December 31, 2014 Beginning asset retirement obligation $ 9,495 $ 9,888 New wells placed on production and other 214 444 Deletions related to property disposals and plugging costs (332 ) (1,318 ) Accretion expense 426 559 Revisions and other 44 198 Discontinued operations — (276 ) Ending asset retirement obligation $ 9,847 $ 9,495 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | The following is a description of the Company’s debt as of September 30, 2015 and December 31, 2014, respectively: September 30, 2015 December 31, 2014 (In thousands) Senior secured credit facility $ 120,000 $ 70,000 Rig loan agreement 3,128 4,456 Real estate lien note 4,163 4,333 127,291 78,789 Less current maturities (2,300 ) (2,235 ) $ 124,991 $ 76,554 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands, except per share data) Numerator: Net (loss) income from continuing operations $ (52,372 ) $ 25,539 $ (59,671 ) $ 33,659 Net loss from discontinued operations — (140 ) (20 ) (522 ) (52,372 ) 25,399 (59,691 ) 33,137 Denominator: Denominator for basic earnings per share – weighted-average common shares outstanding 104,614 104,408 104,561 96,742 Effect of dilutive securities: Stock options and restricted shares — 3,263 — 2,789 Denominator for diluted earnings per share – adjusted weighted-average shares and assumed exercise of options and restricted shares 104,614 107,671 104,561 99,531 Net income (loss) per common share - basic Continuing operations $ (0.50 ) $ 0.24 $ (0.57 ) $ 0.35 Discontinued operations — — — (0.01 ) $ (0.50 ) $ 0.24 $ (0.57 ) $ 0.34 Net income (loss) per common share - diluted Continuing operations $ (0.50 ) $ 0.24 $ (0.57 ) $ 0.34 Discontinued operations — — — (0.01 ) $ (0.50 ) $ 0.24 $ (0.57 ) $ 0.33 |
Hedging Program and Derivativ20
Hedging Program and Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contract Position | The following table sets forth the summary position of our derivative contracts as of September 30, 2015 : Fixed price swaps: Oil - WTI Gas Contract Periods Daily Volume (Bbl) Swap Price (per Bbl) Daily Volume (Mcf) Swap Price (per Mcf) 2015 (October - December) — $ — 1,450 $ 4.04 2016 948 $ 84.10 — $ — 2017 608 $ 78.55 — $ — Collar contracts combined with short puts (three-way collar) Oil - WTI Contract Periods Daily Volume (Bbl) Floor (Long Put) Ceiling (Short Call) Short Put 2015 (October - December) 2,000 $ 55.00 $ 70.00 $ — 2016 1,000 $ 60.00 $ 71.00 $ 45.00 |
Impact of Derivative Contracts on Balance Sheet | The following table illustrates the impact of derivative contracts on the Company’s balance sheet: Fair Value of Derivative Instruments as of September 30, 2015 Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity price derivatives Derivatives – current $ 12,881 Derivatives – current $ — Commodity price derivatives Derivatives – long-term 10,353 Derivatives – long-term — $ 23,234 $ — Fair Value of Derivative Instruments as of December 31, 2014 Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity price derivatives Derivatives – current $ 12,214 Derivatives – current $ 13 Commodity price derivatives Derivatives – long-term 10,981 Derivatives – long-term — $ 23,195 $ 13 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | The following tables sets forth information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 , and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of September 30, 2015 Assets: NYMEX Fixed Price Derivative contracts $ — $ 17,889 $ — $ 17,889 NYMEX Collars — 5,345 — 5,345 Total Assets $ — $ 23,234 $ — $ 23,234 Liabilities: NYMEX Fixed Price Derivative contracts $ — $ — $ — $ — Total Liabilities $ — $ — $ — $ — Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2014 Assets: NYMEX Fixed Price Derivative contracts $ — $ 23,195 $ — $ 23,195 Total Assets $ — $ 23,195 $ — $ 23,195 Liabilities: NYMEX Fixed Price Derivative contracts $ — $ 13 $ — $ 13 Total Liabilities $ — $ 13 $ — $ 13 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Share-Based Payments | |||||
Stock-based compensation expense | $ 835 | $ 582 | $ 3,085 | $ 2,050 | |
Proved property impairment | 59,891 | 0 | 59,891 | 0 | |
Entity's asset retirement obligation transactions [Roll Forward] | |||||
Beginning asset retirement obligation | 9,495 | 9,888 | $ 9,888 | ||
New wells placed on production and other | 214 | 444 | |||
Deletions related to property disposals and plugging costs | (332) | (1,318) | |||
Accretion expense | 426 | 419 | 559 | ||
Revisions and other | 44 | 198 | |||
Discontinued operations | 0 | (276) | |||
Ending asset retirement obligation | $ 9,847 | $ 9,847 | $ 9,495 | ||
Employee Stock Option [Member] | |||||
Number of Shares (thousands) | |||||
Outstanding, December 31, 2014 | 5,885,000 | ||||
Granted | 1,601,000 | ||||
Exercised | (164,000) | ||||
Cancelled | (433,000) | ||||
Outstanding, September 30, 2015 | 6,889,000 | 6,889,000 | 5,885,000 | ||
Weighted Average Option Exercise Price Per Share | |||||
Outstanding, December 31, 2014 | $ 2.88 | ||||
Granted | $ 2.90 | 2.90 | $ 2.88 | ||
Exercised | 3.22 | ||||
Cancelled | 4.45 | ||||
Outstanding, September 30, 2015 | 1.03 | ||||
Weighted Average Grant Date Fair Value Per Share | |||||
Outstanding, December 31, 2014 | 2.06 | ||||
Granted | 2.37 | ||||
Exercised | 0.71 | ||||
Cancelled | 3.67 | ||||
Outstanding, September 30, 2015 | $ 2.06 | $ 2.06 | $ 2.06 | ||
Share-Based Payments | |||||
Options exercisable | 4,362,000 | 4,362,000 | 4,112,000 | ||
Stock-based compensation expense | $ 463 | 361 | $ 1,917 | $ 1,475 | |
Unamortized compensation cost expected to be recognized in 2015 through 2018 | $ 4,200 | $ 4,200 | |||
Vested Shares | 470,325 | 470,325 | |||
Vested shares, closing price | $ 1.28 | $ 1.28 | |||
Restricted Stock [Member] | |||||
Number of Shares (thousands) | |||||
Unvested, December 31, 2014 | 1,776,000 | ||||
Granted | 0 | ||||
Vested/Released | (118,000) | ||||
Forfeited | (5,000) | ||||
Unvested, September 30, 2015 | 1,653,000 | 1,653,000 | 1,776,000 | ||
Weighted Average Grant Date Fair Value Per Share (in US$ per share) | |||||
Unvested, December 31, 2014 | $ 3.43 | ||||
Granted | 0 | ||||
Vested/Released | 3.37 | ||||
Forfeited | 2.56 | ||||
Unvested, September 30, 2015 | $ 3.44 | $ 3.44 | $ 3.43 | ||
Share-Based Payments | |||||
Stock-based compensation expense | $ 372 | $ 221 | $ 1,168 | ||
Unamortized compensation cost expected to be recognized in 2015 through 2018 | $ 3,600 | $ 3,600 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||||
Income tax (expense) benefit | $ 0 | $ 0 | $ 0 | $ 0 | |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 150,800 | ||||
Deferred Tax Assets, Valuation Allowance | $ 60,100 |
Long-Term Debt (Details)
Long-Term Debt (Details) | 9 Months Ended | |
Sep. 30, 2015USD ($)borrowing_basereporthp | Dec. 31, 2014USD ($) | |
Long-term debt [Abstract] | ||
Long-term debt | $ 127,291,000 | $ 78,789,000 |
Less current maturities | (2,300,000) | (2,235,000) |
Long-term debt – less current maturities | 124,991,000 | 76,554,000 |
Credit Facility [Abstract] | ||
Maximum borrowing capacity | 300,000,000 | |
Current borrowing base | $ 165,000,000 | |
Number of reserve report prepared internally | report | 1 | |
Number of borrowing base redetermination | borrowing_base | 1 | |
Term of borrowing base redetermination | 6 months | |
Description of variable rate basis | LIBOR | |
Interest Coverage Ratio | 19.46 | |
Total debt to ebitdax ratio | 2.16 | |
Current Ratio | 1.69 | |
Senior Secured Credit Facility [Member] | ||
Long-term debt [Abstract] | ||
Long-term debt | $ 120,000,000 | 70,000,000 |
Credit Facility [Abstract] | ||
Market value of property (in hundredths) | 5.00% | |
Reduced collateral value (in hundredths) | 5.00% | |
Percentage added to variable rate (in hundredths) | 0.50% | |
Interest rate on credit facility (in hundredths) | 2.45% | |
Senior Secured Credit Facility [Member] | Minimum [Member] | ||
Credit Facility [Abstract] | ||
Percentage added to reference rate (in hundredths) | 0.75% | |
Percentage added to variable rate (in hundredths) | 1.75% | |
Senior Secured Credit Facility [Member] | Maximum [Member] | ||
Credit Facility [Abstract] | ||
Percentage added to reference rate (in hundredths) | 1.75% | |
Percentage added to variable rate (in hundredths) | 2.75% | |
Rig Loan Agreement [Member] | ||
Long-term debt [Abstract] | ||
Long-term debt | $ 3,128,000 | 4,456,000 |
Credit Facility [Abstract] | ||
Maturity date of debt instrument | Feb. 14, 2017 | |
Rig Loan Agreement [Abstract] | ||
Power of diesel electric drilling rig (in horsepower) | hp | 2,000 | |
Amount that can be borrowed under rig loan agreement | $ 7,000,000 | |
Interest rate on debt (in hundredths) | 4.26% | |
Real Estate Lien Note [Abstract] | ||
Monthly installments of principal and interest | $ 179,695 | |
Real Estate Lien Note [Member] | ||
Long-term debt [Abstract] | ||
Long-term debt | $ 4,163,000 | $ 4,333,000 |
Credit Facility [Abstract] | ||
Maturity date of debt instrument | Jul. 20, 2023 | |
Real Estate Lien Note [Abstract] | ||
Fixed interest rate on note (in hundredths) | 4.25% | |
Monthly installments of principal and interest | $ 34,354 | |
Interest rate adjustment over prime (in hundredths) | 1.00% | |
Real Estate Lien Note [Member] | Maximum [Member] | ||
Real Estate Lien Note [Abstract] | ||
Interest rate adjustment over prime (in hundredths) | 7.25% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator [Abstract] | |||||
Net (loss) income from continuing operations | $ (52,372) | $ 25,539 | $ (59,671) | $ 33,659 | |
Net loss from discontinued operations | 0 | (140) | $ (522) | (20) | (522) |
Net (loss) income | $ (52,372) | $ 25,399 | $ (59,691) | $ 33,137 | |
Denominator [Abstract] | |||||
Denominator for basic earnings per share – weighted-average common shares outstanding (shares) | 104,614,000 | 104,408,000 | 104,561,000 | 96,742,000 | |
Effect of dilutive securities [Abstract] | |||||
Stock options, restricted shares and warrants (in shares) | 0 | 3,263,000 | 0 | 2,789,000 | |
Dilutive potential common shares [Abstract] | |||||
Denominator for diluted earnings per share - adjusted weighted-average shares and assumed exercise of options, restricted shares and warrants (in shares) | 104,614,000 | 107,671,000 | 104,561,000 | 99,531,000 | |
Earnings Per Share, Basic [Abstract] | |||||
Continuing operations (in dollars per share) | $ (0.50) | $ 0.24 | $ (0.57) | $ 0.35 | |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.01) | |
Total (in dollars per share) | (0.50) | 0.24 | (0.57) | 0.34 | |
Earnings Per Share, Diluted [Abstract] | |||||
Continuing operations (in dollars per share) | (0.50) | 0.24 | (0.57) | 0.34 | |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.01) | |
Total (in dollars per share) | $ (0.50) | $ 0.24 | $ (0.57) | $ 0.33 | |
Stock options excluded from the calculation of diluted income (loss) per share (in shares) | 1,971 | 2,505 |
Hedging Program and Derivativ26
Hedging Program and Derivatives (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)bbl$ / bblMMcf$ / Mcf | Dec. 31, 2014USD ($) | |
Impact of derivative contracts on balance sheet [Abstract] | ||
Derivative asset - current | $ 12,881 | $ 12,214 |
Derivative asset - long-term | 10,353 | 10,981 |
Derivative Assets | 23,234 | 23,195 |
Derivative liability - current | 0 | 13 |
Derivative Liabilities | $ 0 | 13 |
Oil - WTI [Member] | 2015 [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Daily Volume | bbl | 0 | |
Fixed price swap price | $ / bbl | 0 | |
Oil - WTI [Member] | 2016 [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Daily Volume | bbl | 948 | |
Fixed price swap price | $ / bbl | 84.10 | |
Oil - WTI [Member] | 2017 [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Daily Volume | bbl | 608 | |
Fixed price swap price | $ / bbl | 78.55 | |
Gas [Member] | 2015 [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Daily Volume | MMcf | 1,450 | |
Fixed price swap price | $ / Mcf | 4.04 | |
Gas [Member] | 2016 [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Daily Volume | MMcf | 0 | |
Fixed price swap price | $ / Mcf | 0 | |
Gas [Member] | 2017 [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Daily Volume | MMcf | 0 | |
Fixed price swap price | $ / Mcf | 0 | |
Three-way Collar [Member] | Oil - WTI [Member] | 2015 [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Daily Volume | bbl | 2,000 | |
Floor (Long Put) | $ / bbl | 55 | |
Ceiling (Short Call) | $ / bbl | 70 | |
Short Put | $ / bbl | 0 | |
Three-way Collar [Member] | Oil - WTI [Member] | 2016 [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Daily Volume | bbl | 1,000 | |
Floor (Long Put) | $ / bbl | 60 | |
Ceiling (Short Call) | $ / bbl | 71 | |
Short Put | $ / bbl | 45 | |
Commodity Price Derivatives [Member] | Derivative Asset - Current [Member] | ||
Impact of derivative contracts on balance sheet [Abstract] | ||
Derivative asset - current | 12,214 | |
Commodity Price Derivatives [Member] | Derivative Asset - Long-Term [Member] | ||
Impact of derivative contracts on balance sheet [Abstract] | ||
Derivative asset - long-term | 10,981 | |
Commodity Price Derivatives [Member] | Derivative Liability - Current [Member] | ||
Impact of derivative contracts on balance sheet [Abstract] | ||
Derivative liability - current | $ 0 | 13 |
Commodity Price Derivatives [Member] | Derivative Liability - Long-Term [Member] | ||
Impact of derivative contracts on balance sheet [Abstract] | ||
Derivative liability - long-term | $ 0 | $ 0 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | $ 23,234 | $ 23,195 |
Liabilities [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 0 | 13 |
Recurring Basis [Member] | ||
Assets [Abstract] | ||
Total Assets | 23,234 | 23,195 |
Liabilities [Abstract] | ||
Total Liabilities | 0 | 13 |
Recurring Basis [Member] | Fixed Price Derivative Contracts [Member] | ||
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 17,889 | 23,195 |
Liabilities [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 0 | 13 |
Recurring Basis [Member] | Collars [Member] | ||
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 5,345 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Total Assets | 0 | 0 |
Liabilities [Abstract] | ||
Total Liabilities | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Price Derivative Contracts [Member] | ||
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 0 | 0 |
Liabilities [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Collars [Member] | ||
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Total Assets | 23,234 | 23,195 |
Liabilities [Abstract] | ||
Total Liabilities | 0 | 13 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fixed Price Derivative Contracts [Member] | ||
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 17,889 | 23,195 |
Liabilities [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 0 | 13 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Collars [Member] | ||
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 5,345 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Total Assets | 0 | 0 |
Liabilities [Abstract] | ||
Total Liabilities | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Price Derivative Contracts [Member] | ||
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 0 | 0 |
Liabilities [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 0 | $ 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Collars [Member] | ||
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | $ 0 |
Discontinued Operations (Detail
Discontinued Operations (Details) - Canadian Abraxas Petroleum, UCL [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | $ 300 | $ 1,100 | ||
Net loss | $ 140 | $ 500 |