Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 10, 2016 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 106,346,001 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 295,066,931 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 3,540 | $ 3,772 |
Accounts receivable: | ||
Joint owners - net | 1,552 | 5,648 |
Oil and gas production sales | 6,713 | 15,308 |
Other | 1,241 | 647 |
Total accounts receivable | 9,506 | 21,603 |
Derivative assets | 18,902 | 12,214 |
Other current assets | 726 | 843 |
Total current assets | 32,674 | 38,432 |
Oil and gas properties, full cost method of accounting: | ||
Proved | 787,683 | 716,922 |
Other property and equipment | 41,444 | 40,683 |
Total | 829,127 | 757,605 |
Less accumulated depreciation, depletion, amortization and impairment | (604,289) | (434,726) |
Total property and equipment, net | 224,838 | 322,879 |
Deferred financing fees, net | 1,642 | 2,216 |
Derivative asset | 8,463 | 10,981 |
Other assets | 255 | 391 |
Total assets | 267,872 | 374,899 |
Current liabilities: | ||
Accounts payable | 24,825 | 63,549 |
Joint interest oil and gas production payable | 7,177 | 14,423 |
Accrued interest | 115 | 72 |
Other accrued expenses | 622 | 1,006 |
Derivative liability | 0 | 13 |
Current maturities of long-term debt | 2,330 | 2,235 |
Total current liabilities | 35,069 | 81,298 |
Long-term debt – less current maturities | 138,402 | 76,554 |
Other liabilities | 257 | 57 |
Future site restoration | 9,679 | 9,495 |
Total liabilities | $ 183,407 | $ 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 $.01 per share – authorized 200,000,000 shares; issued and outstanding 106,186,678 and 106,346,001, respectively | 1,063 | 1,062 |
Additional paid-in capital | 313,852 | 309,773 |
Accumulated deficit | (230,450) | (103,340) |
Total stockholders’ equity | 84,465 | 207,495 |
Total liabilities and stockholders’ equity | $ 267,872 | $ 374,899 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Dec. 31, 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) | 106,186,678 | 106,346,001 |
Common stock, shares outstanding (in shares) | 106,186,678 | 106,346,001 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Oil and gas production revenues | $ 67,002 | $ 133,701 | $ 92,268 |
Other | 28 | 75 | 56 |
Total revenue | 67,030 | 133,776 | 92,324 |
Operating costs and expenses: | |||
Lease operating | 23,074 | 25,875 | 23,205 |
Production taxes | 6,679 | 11,462 | 8,437 |
Depreciation, depletion, and amortization | 38,721 | 43,139 | 25,588 |
Proved property impairment | 128,573 | 0 | 0 |
General and administrative (including stock-based compensation of $2,114, $2,703 and $3,912, respectively) | 11,788 | 13,378 | 11,997 |
Operating expenses | 208,835 | 93,854 | 69,227 |
Operating income (loss) | (141,805) | 39,922 | 23,097 |
Other (income) expense: | |||
Interest income | (2) | (2) | (3) |
Interest expense | 3,906 | 2,570 | 4,556 |
Amortization of deferred financing fees | 643 | 934 | 1,367 |
Gain on sale of properties | 0 | 0 | (33,377) |
Loss (gain) on derivative contracts | (19,301) | (25,237) | 2,474 |
Other | 318 | (7) | 539 |
Total other (income) expense | (14,436) | (21,742) | (24,444) |
Income (loss) from continuing operations before income tax | (127,369) | 61,664 | 47,541 |
Income tax (expense) benefit | 279 | 287 | (700) |
Net income (loss) from continuing operations | (127,090) | 61,951 | 46,841 |
Net (loss) income from discontinued operations - net of tax | (20) | 1,318 | (8,194) |
Net income (loss) | $ (127,110) | $ 63,269 | $ 38,647 |
Net income (loss) per common share - basic | |||
Continuing operations (in dollars per share) | $ (1.21) | $ 0.63 | $ 0.51 |
Discontinued operations (in dollars per share) | 0 | 0.01 | (0.09) |
Total (in dollars per share) | (1.21) | 0.64 | 0.42 |
Net income (loss) per common share - diluted | |||
Continuing operations (in dollars per share) | (1.21) | 0.61 | 0.50 |
Discontinued operations (in dollars per share) | 0 | 0.01 | (0.09) |
Total (in dollars per share) | $ (1.21) | $ 0.62 | $ 0.41 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating costs and expenses: | |||
Stock-based compensation | $ 3,912 | $ 2,703 | $ 2,114 |
CONSOLIDATED STATEMENTS OF OTHE
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (127,110) | $ 63,269 | $ 38,647 |
Other comprehensive income (loss): | |||
Change in unrealized value of investments | 0 | 0 | (79) |
Foreign currency translation adjustment | 0 | 607 | (559) |
Other comprehensive income (loss) | 0 | 607 | (638) |
Comprehensive income (loss) | $ (127,110) | $ 63,876 | $ 38,009 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2012 | $ 46,700,000 | $ 927,000 | $ 250,998,000 | $ (205,256,000) | $ 31,000 |
Balance (in shares) at Dec. 31, 2012 | 92,733,448 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 38,647,000 | $ 0 | 0 | 38,647,000 | 0 |
Change in unrealized gain (loss) on fair value of investments | (79,000) | 0 | 0 | 0 | (79,000) |
Foreign currency translation adjustment | (559,000) | 0 | 0 | 0 | (559,000) |
Stock-based compensation | 2,114,000 | 0 | 2,114,000 | 0 | 0 |
Stock options exercised | 83,000 | $ 2,000 | 81,000 | 0 | 0 |
Stock options exercised (in shares) | 129,686 | ||||
Restricted stock issued, net of cancellations | 0 | $ 0 | 0 | 0 | 0 |
Restricted stock issued, net of cancellations (in shares) | 42,915 | ||||
Balance at Dec. 31, 2013 | 86,906,000 | $ 929,000 | 253,193,000 | (166,609,000) | (607,000) |
Balance (in shares) at Dec. 31, 2013 | 92,906,049 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 63,269,000 | $ 0 | 0 | 0 | |
Change in unrealized gain (loss) on fair value of investments | 0 | ||||
Foreign currency translation adjustment | 607,000 | 0 | 0 | 0 | 607,000 |
Stock issuance | 53,755,000 | $ 115,000 | 53,640,000 | ||
Stock issuance (in shares) | 11,500,000 | ||||
Stock-based compensation | 2,703,000 | $ 0 | 2,703,000 | 0 | 0 |
Stock options exercised | 255,000 | $ 3,000 | 252,000 | 0 | 0 |
Stock options exercised (in shares) | 238,157 | ||||
Restricted stock issued, net of cancellations | 0 | $ 15,000 | (15,000) | 0 | 0 |
Restricted stock issued, net of cancellations (in shares) | 1,542,472 | ||||
Balance at Dec. 31, 2014 | $ 207,495,000 | $ 1,062,000 | 309,773,000 | (103,340,000) | 0 |
Balance (in shares) at Dec. 31, 2014 | 106,346,001 | 106,186,678 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ (127,110,000) | $ 0 | 0 | 0 | |
Change in unrealized gain (loss) on fair value of investments | 0 | ||||
Stock-based compensation | 3,912,000 | 0 | 3,912,000 | 0 | 0 |
Stock options exercised | 168,000 | $ 1,000 | 167,000 | 0 | 0 |
Stock options exercised (in shares) | 164,400 | ||||
Restricted stock issued, net of cancellations | 0 | $ 0 | 0 | 0 | 0 |
Restricted stock issued, net of cancellations (in shares) | (5,077) | ||||
Balance at Dec. 31, 2015 | $ 84,465,000 | $ 1,063,000 | $ 313,852,000 | $ (230,450,000) | $ 0 |
Balance (in shares) at Dec. 31, 2015 | 106,186,678 | 106,346,001 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income (loss) | $ (127,110) | $ 63,269 | $ 38,647 |
Net (loss) income from discontinued operations | (20) | 1,318 | (8,194) |
Net income (loss) from continuing operations | (127,090) | 61,951 | 46,841 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Gain on sale of properties | 0 | 0 | (33,377) |
Net gain on derivative contracts | (19,301) | (25,217) | 2,494 |
Derivative contract settlements | 9,495 | 361 | (5,035) |
Monetization of derivative contracts | 4,610 | 152 | 0 |
Depreciation, depletion, and amortization | 38,721 | 43,139 | 25,588 |
Proved property impairment | 128,573 | 0 | 0 |
Accretion of future site restoration | 565 | 559 | 615 |
Amortization of deferred financing fees | 643 | 934 | 1,367 |
Stock-based compensation | 3,912 | 2,703 | 2,114 |
Changes in operating assets and liabilities: | |||
Accounts receivable - net of allowance | 12,097 | 11,881 | (13,702) |
Other assets and liabilities | 1,466 | (2,737) | (7) |
Accounts payable | (45,970) | 1,596 | 27,514 |
Accrued expenses | (722) | (860) | (1,933) |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 6,999 | 94,462 | 52,479 |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | (20) | 1,741 | (825) |
Net cash provided by continuing operations | 6,979 | 96,203 | 51,654 |
Investing Activities | |||
Capital expenditures, including purchases and development of properties | (69,391) | (192,799) | (92,489) |
Proceeds from the sale of oil and gas properties | 138 | 5,999 | 127,529 |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (69,253) | (186,800) | 35,040 |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 0 | 332 | (2,554) |
Net cash provided by (used in) continuing operations | (69,253) | (186,468) | 32,486 |
Financing Activities | |||
Proceeds from exercise of stock options | 168 | 255 | 83 |
Proceeds from issuance of common stock, net of offering costs | 0 | 53,755 | 0 |
Proceeds from long-term borrowings | 68,007 | 82,000 | 42,000 |
Payments on long-term borrowings | (6,064) | (47,143) | (122,826) |
Deferred financing fees | (69) | (1,010) | (110) |
Other | 0 | 0 | (3,536) |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | 62,042 | 87,857 | (84,389) |
Cash Provided by (Used in) Financing Activities, Discontinued Operations | 0 | 975 | 3,375 |
Net cash (used in) provided by continuing operations | 62,042 | 88,832 | (81,014) |
Effect of exchange rate changes on cash - discontinued operations | 0 | 0 | 18 |
Increase (decrease) in cash | (232) | (1,433) | 3,144 |
Cash at beginning of year | 3,772 | 5,205 | 2,061 |
Cash at end of year | 3,540 | 3,772 | 5,205 |
Supplemental disclosure of cash flow information: | |||
Interest Paid | 3,298 | 1,970 | 3,986 |
Income taxes paid | 0 | 0 | 391 |
Non-Cash Investing Activities: | |||
Asset retirement obligation cost and liabilities | (30) | (198) | (138) |
Asset retirement obligations associated with property acquisitions and dispositions | $ 410 | $ (406) | $ (1,890) |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Organization and Significant Accounting Policies Nature of Operations We are an independent energy company primarily engaged in the acquisition, exploitation, development and production of oil and gas in the United States. Our oil and gas assets are located in three operating regions in the United States, the Rocky Mountain, Permian Basin and onshore Gulf Coast. 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 recognized in connection with contractual drilling services performed in connection with properties in which the Company or its affiliates holds an ownership, or other economic interest. Any income not recognized as a result of this limitation is credited to the full cost pool and recognized through lower amortization as reserves are produced. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The process of estimating oil and gas reserves in accordance with SEC requirements is complex and involves decisions and assumptions in evaluating the available geological, geophysical, engineering and economic data. Accordingly, these estimates are imprecise. Actual future production, oil and gas prices, revenues, taxes, capital expenditures, operating expenses and quantities of recoverable oil and gas reserves most likely will vary from those estimated. Any significant variance could materially affect the estimated quantities and present value of our reserves. In addition, we may adjust estimates of proved reserves to reflect production history, results of exploration and development, prevailing oil and gas prices and other factors, many of which are beyond our control. The most significant estimates pertain to proved oil, natural gas and NGLs reserves and related cash flow estimates used in impairment tests of oil and gas properties, the fair value of assets and liabilities acquired in business combinations, derivative contracts, asset retirement obligations, accrued oil and gas revenues and expenses, as well as estimates of expenses related to depreciation, depletion, amortization and accretion. Actual results could differ from those estimates. Reclassification of prior period balances Certain amounts in the prior periods presented have been reclassified to conform to the current year financial statement presentation. These reclassifications have no effect on previously reported net income. Concentration of Credit Risk Financial instruments which potentially expose the Company to credit risk consist principally of trade receivables and derivative contracts. Accounts receivable are generally from companies with significant oil and gas marketing activities. The Company performs ongoing credit evaluations and, generally, requires no collateral from its customers. The counterparties to our derivative contracts are the same financial institutions from which we have outstanding debt; accordingly, we believe our exposure to credit risk to these counterparties is currently mitigated in part by this, as well as the current overall financial condition of the counterparties. The Company maintains any cash and cash equivalents in excess of federally insured limits in prominent financial institutions considered by the Company to be of high credit quality. Cash and Equivalents Cash and cash equivalents include cash on hand, demand deposits and short-term investments with original maturities of three months or less. Accounts Receivable Accounts receivable are reported net of an allowance for doubtful accounts of approximately $407,000 and $296,000 at December 31, 2014 and 2015, respectively. The allowance for doubtful accounts is determined based on the Company's historical losses, as well as a review of certain accounts. Accounts are charged off when collection efforts have failed and the account is deemed uncollectible. Industry Segment and Geographic Information The Company operates in one industry segment, which is the exploration, development and production of oil and gas with all of the Company’s operational activities having been conducted in the U.S. The Company’s current operational activities and the Company’s consolidated revenues are generated from markets exclusively in the U.S., and the Company has no long lived assets located outside the U.S. 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 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 unamortized cost or the cost ceiling, defined as the sum of the present value of estimated future net revenues from proved reserves based on unescalated prices discounted at 10 percent , 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. Costs in excess of the present value of estimated future net revenues are charged to proved property impairment expense. No gain or loss is recognized upon sale or disposition of oil and gas properties for full cost accounting companies with proceeds accounted for as an adjustment of capitalized cost. An exception to this rule occurs when the adjustment to the full cost pool results in a significant alteration of the relationship between capitalized cost and proved reserves. The Company applies the full cost ceiling test on a quarterly basis on the date of the latest balance sheet presented. For the years ended December 31, 2013 and 2014, our net capitalized costs of oil and gas properties did not exceed the present value of our estimated proved reserves. For the year ended December 31, 2015, our capitalized cost of oil and gas properties exceeded the present value of our estimated proved reserves by $128.6 million , resulting in the recognition of a proved property impairment of $128.6 million . However, the impairment calculations did not consider the positive impact of our commodity derivative positions as generally accepted accounting principles only allow the inclusion of derivatives designated as cash flow hedges. Other Property and Equipment Other property and equipment are recorded on the basis of cost. Depreciation of other property and equipment is provided over the estimated useful lives using the straight-line method. Major renewals and improvements are recorded as additions to the property and equipment accounts. Repairs that do not improve or extend the useful lives of assets are expensed. Estimates of Proved Oil and Gas Reserves Estimates of our proved reserves included in this report are prepared in accordance with GAAP and SEC guidelines. The accuracy of a reserve estimate is a function of: • the quality and quantity of available data; • the interpretation of that data; • the accuracy of various mandated economic assumptions; and • the judgment of the persons preparing the estimate. Our proved reserve information included in this report was based on studies performed by our independent petroleum engineers assisted by the Engineering and Operations departments of Abraxas. Estimates prepared by other third parties may be higher or lower than those included herein. Because these estimates depend on many assumptions, all of which may substantially differ from future actual results, reserve estimates will be different from the quantities of oil and gas that are ultimately recovered. In addition, results of drilling, testing and production after the date of an estimate may cause material revisions to the estimate. In accordance with SEC requirements, we based the estimated discounted future net cash flows from proved reserves on the average of oil and gas prices based on the unweighted average 12 month first-day-of-month pricing. Future prices and costs may be materially higher or lower than these prices and costs which would impact the estimated value of our reserves. The estimates of proved reserves materially impact depreciation, depletion and amortization, or DD&A expense. If the estimates of proved reserves decline, the rate at which we record DD&A expense will increase, reducing future net income. Such a decline may result from lower commodity prices, which may make it uneconomic to drill for and produce higher cost fields. Derivative Instruments and Hedging Activities The Company enters into agreements to hedge the risk of future oil and gas price fluctuations. Such agreements are in the form of fixed price swaps and three way collars, which limit the impact of price fluctuations with respect to the Company’s sale of oil and gas. While it is never management’s intention to hold or issue derivative instruments for speculative trading purposes, conditions could arise where actual production is less than estimated which could, result in overhedged volumes. All derivative instruments are recorded on the Consolidated Balance Sheets at fair value as either short-term or long-term assets or liabilities based on their anticipated settlement date. The derivative instruments the Company utilizes are based on index prices that may and often do differ from the actual oil and gas prices realized in its operations. These variations often result in a lack of adequate correlation to enable these derivative instruments to qualify for hedge accounting rules as prescribed by Accounting Standards Codification (“ASC”) 815. Accordingly, the Company does not account for its derivative instruments as cash flow hedges for financial reporting purposes. Therefore, changes in fair value of these derivative instruments are recognized in earnings and included in net gains (losses) on commodity derivative contracts in the Consolidated Statements of Operations. Fair Value of Financial Instruments The Company includes fair value information in the notes to consolidated financial statements when the fair value of its financial instruments is materially different from the carrying value. The carrying value of those financial instruments that are classified as current approximates fair value because of the short maturity of these instruments. For noncurrent financial instruments, the Company uses quoted market prices or, to the extent that there are no available quoted market prices, market prices for similar instruments. Share-Based Payments Options granted are valued at the date of grant and expense is recognized over the vesting period. The Company currently utilizes a standard option pricing model (Black-Scholes) to measure the fair value of stock options granted to employees and directors. 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 value of such restricted stock is determined using the market price on the grant date and expense is recorded over the vesting period. For the years ended December 31, 2013, 2014 and 2015, stock-based compensation was approximately $2.1 million , $2.7 million and $3.9 million , respectively. 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 noncapital 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 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 we amortize these costs as a component of our depletion expense in the accompanying consolidated financial statements. Each year, the Company reviews, and to the extent necessary, revises its asset retirement obligation estimates. The following table summarizes the Company’s asset retirement obligations during the two years ended December 31: 2014 2015 (in thousands) Beginning asset retirement obligation $ 9,888 $ 9,495 New wells placed on production and other 444 307 Deletions related to property disposals and plugging costs (1,318 ) (793 ) Accretion expense 559 565 Revisions 198 105 Discontinued operations (276 ) — Ending asset retirement obligation $ 9,495 $ 9,679 Revenue Recognition and Major Purchasers The Company recognizes oil and gas revenue from its interest in producing wells as oil and gas is sold from those wells, net of royalties. The Company utilizes the sales method to account for gas production imbalances. Under this method, income is recorded based on the Company’s net revenue interest in production taken for delivery. The Company had no material gas imbalances at December 31, 2014 and 2015. During 2013, two purchasers accounted for 49% of oil and gas revenues. During 2014, two purchasers accounted for 62% of oil and gas revenues. During 2015, one customer accounted for 54% of our oil and gas revenues. Deferred Financing Fees Deferred financing fees are being amortized on the effective yield basis over the term of the related debt arrangements. Income Taxes Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect with respect to taxable income in the years in which those temporary differences are expected to be recovered or settled. Uncertainties exist as to the future utilization of the operating loss carryforwards. Therefore, we have established a valuation allowance of $103.7 million for deferred tax assets at December 31, 2015. Accounting for Uncertainty in Income Taxes Evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent reporting period in which the threshold is no longer met. Penalties and interest are classified as income tax expense. New Accounting Standards and Disclosures The Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) in May 2014 which provides accounting guidance for all revenue arising from contracts to provide goods or services to customers. The requirements from the new ASU are effective for interim and annual periods beginning after December 15, 2016, and early adoption is not permitted. The standard allows for either full retrospective adoption or modified retrospective adoption. At this time, we are evaluating the guidance to determine the method of adoption and the impact of this ASU on our financial statements and related disclosures, if any. The FASB issued ASU 2015-03, Interest – Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15, Interest – Imputation of Interest (Topic 835): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. These ASUs require debt issuance costs related to a recognized debt liability, except for those related to revolving credit facilities, to be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability rather than as an asset. These ASUs are effective beginning January 1, 2016 and will be applied using the retrospective approach. These ASUs will not have a material impact on Abraxas's consolidated financial statements and related disclosures. In August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements”, codifies an SEC staff announcement that entities are permitted to defer and present debt issuance costs related to line-of-credit arrangements as assets. The ASU clarifies that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The ASU is effective immediately for both public business entities and non-public entities. Abraxas has elected to follow this presentation guidance. The FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. This ASU is effective for annual and interim periods beginning in 2017 and can be applied prospectively or retrospectively, with early adoption permitted. This ASU will be adopted effective January 1, 2016 and will be applied using the retrospective approach. This ASU will not have an impact on Abraxas's consolidated financial statements and related disclosures. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (“ASU No. 2015-16”) to simplify the accounting for adjustments made to provisional amounts recognized in a business combination by eliminating the requirement to retrospectively account for those adjustments. The amendments under ASU No. 2015-16 require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment In February 2016, the FASB issued ASU 2016-02 “Leases," which supersedes ASC 840 “Leases” and creates a new topic, ASC 842 "Leases." This update requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier application permitted. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the effect of this update on our consolidated financial statements and related disclosures. In August 2014, the FASB issued updated guidance related to determining whether substantial doubt exists about an entity's ability to continue as a going concern. The amendment provides guidance for determining whether conditions or events give rise to substantial doubt that an entity has the ability to continue as a going concern within one year following issuance of the financial statements, and requires specific disclosures regarding the conditions or events leading to substantial doubt. The updated guidance is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2016. Earlier adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. |
Divestiture of Non-Core Propert
Divestiture of Non-Core Properties | 12 Months Ended |
Dec. 31, 2015 | |
Divestiture of Non Core Properties [Abstract] | |
Divestiture of Non-Core Properties | Divestiture of Properties Beginning in the third quarter of 2012 and continuing through the present, the Company's business plan has been to divest various properties considered non-core, and primarily non-operated to focus on its core basins in the Eagle Ford, Bakken, Powder River Basin and Permian Basin. In August 2013 the Company's non-operated properties in the Bakken were sold for net proceeds of $38.3 million . In December 2013, the Company closed on the divestiture of its non-operated position in the Wycross area of the Eagle Ford for net proceeds of $71.4 million . Other property sales during 2013 netted $0.6 million . In the first quarter of 2014 the Company sold several non-core Permian Basin and Gulf Coast properties for combined proceeds of $2.6 million . In the second quarter of 2014 the Company sold a non-core Permian Basin property for net proceeds of $2.5 million . Other non-core asset sales during 2014 netted $0.9 million . There were no significant property sales in 2015. The net proceeds were used to repay outstanding indebtedness under the Company's credit facility, for capital expenditures and general corporate purposes. Proceeds from these sales, except for the Wycross sale, were credited to the full cost pool as these sales were not significant under full cost accounting rules. Due to the magnitude of the Wycross sale and its impact on the relationship of capitalized costs and reserves, a gain of $33.4 million was recognized in 2013. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following is a description of the Company’s debt as of December 31, 2014 and 2015, respectively: December 31, December 31, (In thousands) Senior secured credit facility $ 70,000 $ 134,000 Rig loan agreement 4,456 2,620 Real estate lien note 4,333 4,112 78,789 140,732 Less current maturities (2,235 ) (2,330 ) $ 76,554 $ 138,402 Maturities of long-term debt are as follows: Year ending December 31, (In thousands) 2016 $ 2,330 2017 786 2018 134,262 2019 273 2020 285 Thereafter 2,796 $ 140,732 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 December 31, 2015, $134.0 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 December 31, 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 next redetermination will be effective on April 1, 2016. Outstanding borrowings in excess of the borrowing base must be repaid immediately or we must pledge additional oil and gas properties or other assets as collateral. We do not currently have any substantial unpledged assets and we may not have the financial resources to make any mandatory principal payments. In addition, a reduction of the borrowing base could also cause us to fail to be in compliance with the financial covenants described below. 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 December 31, 2015, the interest rate on the credit facility was 2.92% 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, Derivatives and Hedging, and ASC 410-20 Asset Retirement Obligations, 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 December 31, 2015 we were in compliance with all of our debt covenants. As of December 31, 2015, the interest coverage ratio was 13.16 to 1.00, the total debt to EBITDAX ratio was 3.05 to 1.00, and our current ratio was 1.37 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 2000 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 December 31, 2014 and 2015, $4.5 million and $2.6 million , respectively, were 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 for five years 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 current bank prime rate plus 1.00% with a maximum rate of 7.25% . The maturity date of the note is July 20, 2023. As of December 31, 2014 and 2015, $4.3 million and $4.1 million , respectively, were outstanding on the note. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The major components of property and equipment, at cost, are as follows: Estimated Useful Life December 31, 2014 2015 Years (In thousands) Oil and gas properties — $ 716,922 $ 787,683 Equipment and other 3-39 18,608 18,866 Drilling rig 15 22,075 22,578 $ 757,605 $ 829,127 |
Stock-based Compensation, Optio
Stock-based Compensation, Option Plans and Warrants | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation, Option Plans and Warrants | Stock-Based Compensation and Option Plans Stock Options The Company’s 2005 Amended and Restated Employee Long-Term Equity Incentive Plan reserves 6.6 million shares of Abraxas common stock, subject to adjustment following certain events. Awards may be in options or shares of restricted stock. Options have a term not to exceed 10 years . Options issued under this plan vest according to a vesting schedule as determined by the compensation committee of the Company’s board of directors. Vesting may occur upon (1) the attainment of one or more performance goals or targets established by the committee, (2) the optionee’s continued employment or service for a specified period of time, (3) the occurrence of any event or the satisfaction of any other condition specified by the committee, or (4) a combination of any of the foregoing. The Company utilizes a standard option pricing model (Black-Scholes) to measure the fair value of stock options granted to employees and directors. The fair value for these options was estimated at the date of grant using the following weighted average assumptions for 2013, 2014 and 2015: 2013 2014 2015 Weighted average value per option granted during the period $ 1.73 $ 2.44 $ 2.37 Assumptions: Forfeiture rate (1) 4.1 % 4.2 % 4.5 % Expected dividend yield (2) — % — % — % Volatility (3) 81.2 % 80.7 % 81.1 % Risk free interest rate (4) 1.24 % 2.05 % 1.92 % Expected life (years) (5) 6.5 6.6 7.0 Fair value of options granted (in thousands) $ 1,444 $ 2,666 $ 3,792 (1) The estimated future forfeiture rate is based on the Company’s historical forfeiture rate. (2) The dividend yield is based on the fact the Company does not pay any dividends. (3) The volatility is based on the historical volatility of our stock for a period approximating the expected life. (4) The risk-free interest rate is based on the observed U.S. Treasury yield curve in effect at the time the options were granted. (5) The expected life was derived based on a weighting between (a) the Company’s historical exercise and forfeiture activity and (b) the average midpoint between vesting and the contractual term. The Company grants options to its officers, directors, and other employees under various stock option and incentive plans. The following table is a summary of the Company’s stock option activity for the three years ended December 31: Options (000s) Weighted average exercise price Weighted average remaining life Intrinsic value per share Options outstanding December 31, 2012 4,761 $ 2.77 Granted 836 2.43 Exercised (166 ) 1.18 Forfeited/Expired (31 ) 2.58 Options outstanding December 31, 2013 5,400 $ 2.77 Granted 1,091 3.38 Exercised (410 ) 2.71 Forfeited/Expired (196 ) 3.08 Options outstanding December 31, 2014 5,885 $ 2.88 Granted 1,601 $ 3.22 Exercised (164 ) 1.03 Forfeited/Expired (514 ) 4.36 Options outstanding December 31, 2015 6,808 $ 2.89 6.4 $ 2.06 Exercisable at end of year 4,305 5.1 $ 1.97 Other information pertaining to the Company’s stock option activity for the three years ended December 31: 2013 2014 2015 Weighted average grant date fair value of stock options granted (per share) $ 1.73 $ 2.44 $ 2.37 Total fair value of options vested (000’s) $ 1,670 $ 1,718 $ 2,035 Total intrinsic value of options exercised (000’s) $ 275 $ 932 $ 124 As of December 31, 2015, the total compensation cost related to non-vested awards not yet recognized was approximately $3.8 million , which will be recognized in 2016 through 2019. For the years ended December 31, 2013, 2014 and 2015, we recognized $1.7 million , $1.8 million and $2.4 million , respectively, in stock-based compensation expense relating to options. The following table represents the range of stock option prices and the weighted average remaining life of outstanding options as of December 31, 2015: Options outstanding Exercisable Number outstanding Weighted average remaining life Weighted average exercise price Number exercisable Weighted average remaining life Weighted average exercise price 0.99 - 1.99 1,519,079 3.99 $ 1.54 1,469,079 3.90 $ 1.52 2.00 - 2.99 1,374,300 6.11 $ 2.34 1,073,104 5.76 $ 2.32 3.00 - 3.99 3,068,600 8.05 $ 3.29 936,795 6.39 $ 3.53 4.00 - 4.99 675,750 $ 4.57 659,250 4.70 $ 4.58 5.00 - 5.99 99,000 8.36 $ 5.39 96,750 8.35 $ 5.38 6.00 - 6.28 71,000 0.26 $ 6.05 70,250 0.18 $ 6.05 6,807,729 4,305,228 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 value of such stock is determined using the market price on the grant date. Compensation expense is recorded over the applicable restricted stock vesting periods. As of December 31, 2015, the total compensation cost related to non-vested awards not yet recognized was approximately $3.3 million , which will be recognized in 2016 through 2019. For the years ended December 31, 2013, 2014 and 2015, we recognized $0.4 million , $0.9 million and $1.5 million , respectively, in stock-based compensation expense related to restricted stock awards. The following table is a summary of the Company’s restricted stock activity for the three years ended December 31: Number of Shares Weighted average grant date fair value Unvested December 31, 2012 482,025 $ 3.09 Granted 48,222 2.69 Vested/Released (169,700 ) 2.66 Forfeited (5,307 ) 3.08 Unvested December 31, 2013 355,240 $ 3.24 Granted 1,582,000 3.49 Vested/Released (121,622 ) 3.64 Forfeited (39,528 ) 3.44 Unvested December 31, 2014 1,776,090 $ 3.43 Granted — — Vested/Released (127,729 ) 3.38 Forfeited (5,077 ) 2.56 Unvested December 31, 2015 1,643,284 $ 3.44 Director Stock Awards Shares Reserved and Awards . The 2005 Directors Plan (as amended and restated) reserves 1.9 million shares of Abraxas common stock, subject to adjustment following certain events. The 2005 Directors Plan provides that each year, at the first regular meeting of the board of directors immediately following Abraxas’ annual stockholder’s meeting, each non-employee director shall be granted or issued awards of 25,000 shares of Abraxas common stock, for participation in board and committee meetings during the previous calendar year. The maximum annual award for any one person is 100,000 shares of Abraxas common stock or options for common stock. If options, as opposed to shares, are awarded, the exercise price shall be no less than 100% of the fair market value on the date of the award while the option terms and vesting schedules are at the discretion of the committee. In addition to the 12,000 shares or options, between April 2011 and April 2012, directors were compensated for their annual retainer fee of $27,500 in cash. In April 2012 the retainer fee was increased to $40,000 and remained at $40,000 through 2015. Beginning in 2016, the retainer fee will be reduced by 20% and paid one half in cash and one half in Abraxas common stock. The retainer fee for 2016 is $32,000 . At December 31, 2015, the Company had approximately 8.7 million shares reserved for future issuance for conversion of its stock options, and incentive plans for the Company’s directors, employees and consultants. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax liabilities and assets are as follows: Years Ended December 31, 2013 2014 2015 (In thousands) Deferred tax liabilities: Hedge contracts $ — $ 8,114 $ 9,578 Other 3,152 4,458 4,042 Total deferred tax liabilities 3,152 12,572 13,620 Deferred tax assets: U.S. full cost pool 11,725 3,352 35,689 Canada full cost pool 4,081 — — Capital loss carryforward — 12,325 7,767 Depletion carryforward 4,743 4,936 5,558 U.S. net operating loss carryforward 49,667 50,941 67,531 Canada net operating loss carryforward 5,736 — — Alternative minimum tax credit 1,369 1,104 757 Hedge contracts 1,397 — — Total deferred tax assets 78,718 72,658 117,302 Valuation allowance for deferred tax assets (75,566 ) (60,086 ) (103,682 ) Net deferred tax assets 3,152 12,572 13,620 Net deferred tax $ — $ — $ — Significant components of the provision (benefit) for income taxes are as follows: Years ended December 31, 2013 2014 2015 (In thousands) Current: Federal $ 632 $ (276 ) $ (242 ) State 68 (11 ) (37 ) $ 700 $ (287 ) $ (279 ) Deferred: Federal $ — $ — $ — Foreign — — — $ — $ — $ — At December 31, 2015, the Company had, subject to the limitation discussed below, $192.9 million of net operating loss carryforwards for U.S. tax purposes. The U.S. federal loss carryforward will expire in varying amounts through 2035 , if not utilized. The use of our net operating loss carryforwards will be limited if there is an "ownership change" in our common stock, generally a cumulative ownership change exceeding 50% during a three year period, as determined under Section 382 of the Internal Revenue Code. As of December 31, 2015, we have not had an ownership change as defined by Section 382. In addition to any Section 382 limitations, uncertainties exist as to the future utilization of the operating loss carryforwards. Therefore, the Company has established a valuation allowance of $75.6 million at December 31, 2013, $60.1 million at December 31, 2014 and $103.7 million at December 31, 2015. The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense is: Years ended December 31, 2013 2014 2015 (In thousands) Tax (expense) benefit at U.S. statutory rates (35%) $ (13,771 ) $ (22,044 ) $ 44,586 (Increase) decrease in deferred tax asset valuation allowance 14,146 15,480 (43,596 ) Alternative minimum tax — — 568 Rate differential for non US income (574 ) (39 ) — State income taxes (47 ) — — Accrual of prior year federal taxes (2009 and 2013) (81 ) 287 37 Permanent differences (743 ) (950 ) (1,371 ) Return to provision estimate revision — 4,562 — Tax benefit related to the sale of Canadian subsidiary — 3,501 — Increase in asset for partnership distribution — — — Other 370 (510 ) 55 $ (700 ) $ 287 $ 279 During 2015, the Company increased deferred tax assets by $44.6 million related to increases in the full cost pool assets and net operating loss carryforward offset by a decrease in the net capital loss carryforward. The deferred tax assets were fully offset by a valuation allowance which was reduced at the same time. As of December 31, 2015, 2014 and 2013, the Company did not have any accrued interest or penalties related to uncertain tax positions. The tax years 2012 through 2015 remain open to examination by the tax jurisdictions to which the Company is subject. The Company and Abraxas Energy Partners, L.P., which was merged into a wholly owned subsidiary of Abraxas, have undergone audits of their 2009 federal income tax returns. The audit of the federal income tax return of Abraxas Energy Partners, L.P. was completed with no changes. The audit of Abraxas Petroleum Corporation resulted in a notice of a proposed adjustment of $619,000 . For the year ended December 31, 2012, the Company accrued $310,000 in income tax expense related to the audit of its 2009 federal tax return. This amount was determined by an analysis of what the amount that is greater than 50% likely to be paid upon final settlement. On July 23, 2013, we settled the assessment for $391,000 resulting in $81,000 being recognized as expense in 2013. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company leases office space in Dickinson, North Dakota, Lusk, Wyoming and Denver, Colorado. During 2013, 2014 and 2015, rent expense incurred for the Dickinson, North Dakota office was $26,073 , $26,265 , and $27,165 , respectively. The lease expires on October 31, 2016. Rent expense incurred for the Lusk, Wyoming office for 2013, 2014 and 2015 was $9,000 for each year. The lease expires on December 31, 2016. In 2013 the Company leased office space in Denver, Colorado, rent expense incurred on this lease was $2,834 , $14,554 and $15,601 for 2013, 2014 and 2015, respectively. The lease expires on December 31, 2016. Litigation 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 December 31, 2015, the Company was not engaged in any legal proceedings that are expected, individually or in the aggregate, to have a material adverse effect on the Company. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 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: Years ended December 31: 2013 2014 2015 (In thousands, except per share data) Numerator: Net income (loss) from continuing operations $ 46,841 $ 61,951 $ (127,090 ) Net (loss) income from discontinued operations (8,194 ) 1,318 (20 ) $ 38,647 $ 63,269 $ (127,110 ) Denominator: Denominator for basic earnings per share – weighted-average common shares outstanding 92,451 98,835 104,605 Effect of dilutive securities: Stock options and restricted shares 1,087 2,633 — Denominator for diluted earnings per share – adjusted weighted-average shares and assumed exercise of options and restricted shares 93,538 101,468 104,605 Net income (loss) per common share - basic Continuing operations $ 0.51 $ 0.63 $ (1.21 ) Discontinued operations (0.09 ) 0.01 — $ 0.42 $ 0.64 $ (1.21 ) Net income (loss) per common share - diluted Continuing operations $ 0.50 $ 0.61 $ (1.21 ) Discontinued operations (0.09 ) 0.01 — $ 0.41 $ 0.62 $ (1.21 ) 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 year ended December 31, 2015, 624 potential shares relating to stock options and unvested restricted shares were excluded from the calculation of diluted income (loss) per share since their inclusion would have been anti-dilutive due to the loss incurred in the period. None of the dilutive shares were excluded for the years ended December 31, 2013 and 2014. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) Selected results of operations for each of the fiscal quarters during the years ended December 31, 2014 and 2015 are as follows: 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter (In thousands, except per share data) Year Ended December 31, 2014 Net revenue $ 25,518 $ 33,192 $ 43,874 $ 31,192 Operating income $ 7,695 $ 12,603 $ 16,783 $ 2,842 Net income $ 4,704 $ 3,034 $ 25,399 $ 30,132 Net income per common share – basic $ 0.05 $ 0.03 $ 0.24 $ 0.29 Net income per common share – diluted $ 0.05 $ 0.03 $ 0.24 $ 0.28 Year Ended December 31, 2015 Net revenue $ 18,661 $ 18,944 $ 16,077 $ 13,348 Operating loss $ (4,535 ) $ (1,531 ) $ (63,438 ) $ (72,301 ) Net loss $ (718 ) $ (6,601 ) $ (52,372 ) $ (67,419 ) Net loss per common share – basic $ (0.01 ) $ (0.06 ) $ (0.50 ) $ (0.64 ) Net loss per common share – diluted $ (0.01 ) $ (0.06 ) $ (0.50 ) $ (0.64 ) |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans The Company has a defined contribution plan (401(k) plan) covering all eligible employees. In 2013, 2014 and 2015, in accordance with the safe harbor provisions of the plan, the Company contributed $284,865 , $313,899 and $347,632 , respectively, to the plan. The Company adopted the safe harbor provisions for its 401(k) plan which requires us to contribute a fixed match to each participating employee’s contribution to the plan. The fixed match is set at the rate of dollar for dollar on the first 1% of eligible pay contributed, then 50 cents on the dollar for each additional percentage point of eligible pay contributed, up to 5% . Employee’s eligible pay with respect to calculating the fixed match is limited by IRS regulations. In addition, the Board of Directors, at its sole discretion, may authorize the Company to make additional contributions to each participating employee’s plan. The employee contribution limit for 2013 and 2014 was $17,500 for employees under the age of 50 and $23,000 for employees 50 years of age or older. The 2015 employee contribution limit was $18,000 for employees under the age of 50 and $24,000 for employees 50 years of age or older. |
Hedging Program and Derivatives
Hedging Program and Derivatives | 12 Months Ended |
Dec. 31, 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 December 31, 2015: Fixed Price Swaps: Oil - WTI Contract Periods Daily Volume (Bbl) Swap Price (per Bbl) 2016 948 $ 84.10 2017 608 $ 78.55 Collar contracts combined with short puts (three-way collar): Daily Volume (Bbl) Floor (Long Put) Ceiling (Short Call) Short Put 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 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 Fair Value of Derivative Instruments as of December 31, 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 $ 18,902 Derivatives – current $ — Commodity price derivatives Derivatives – long-term 8,463 Derivatives – long-term — $ 27,365 $ — Gains and losses from derivative activities are reflected as “Loss (gain) on derivative contracts” in the accompanying Consolidated Statements of Operations. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments There is 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 December 31, 2014 and 2015, 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 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 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, 2015 Assets: NYMEX Fixed Price Derivative contracts $ — $ 21,731 $ — $ 21,731 NYMEX Collars — — 5,634 5,634 Total Assets $ — $ 21,731 $ 5,634 $ 27,365 Liabilities: NYMEX Fixed Price Derivative contracts $ — $ — $ — $ — Total Liabilities $ — $ — $ — $ — The Company’s derivative contracts consist of NYMEX-based fixed price commodity swaps and NYMEX collars. The NYMEX-based fixed price derivative contracts 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. The fair value of the collar instruments are based on inputs that are not as observable as the fixed price swaps. In addition to the actively quoted market price, variables such as time value, volatility and other unobservable inputs are used. Accordingly, these instruments have been classified as Level 3. Additional information for the Company's recurring fair value measurements using significant unobservable inputs (Level 3 inputs) for the year ended December 31, 2015. (In thousands) Unobservable inputs at January 1, 2015 $ — Changes in market value 8,474 Settlements during the period (2,840 ) Unobservable inputs at December 31, 2015 $ 5,634 Nonrecurring Fair Value Measurements The Company follows the provisions of ASC 820-10 for nonfinancial assets and liabilities measured at fair value on a nonrecurring basis. As it relates to the Company, ASC 820-10 applies to certain nonfinancial assets and liabilities as may be acquired in a business combination and thereby measured at fair value and the initial recognition of asset retirement obligations for which fair value is used. The asset retirement obligation estimates are derived from historical costs as well as management’s expectation of future cost environments. As there is no corroborating market activity to support the assumptions used, the Company has designated these liabilities as Level 3. A reconciliation of the beginning and ending balances of the Company’s asset retirement obligation is presented in Note 1. 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 | 12 Months Ended |
Dec. 31, 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. In 2014, the Company recognized a gain on the sale of $1.9 million which is included in the accompanying Consolidated Statements of Operations as a component of net (loss) income from discontinued operations, net of tax. Canadian Abraxas revenue, reported in discontinued operations for the ten months ended October 31, 2014, and for the year ended December 31, 2013 was $1.2 million and $2.0 million , respectively. Canadian Abraxas net loss, reported in discontinued operations for the ten months ended October 31, 2014 and year ended December 31, 2013 was $0.6 million and $8.2 million , respectively. The following is a summary of the net assets of Canadian Abraxas as of October 31, 2014. October 31, 2014 Current assets $ 252 Oil and gas properties - net 659 Other assets — Total assets 911 Accounts payable 275 Accrued expenses 280 Total liabilities 555 Net assets of discontinued operation $ 356 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On March 11, 2016 the Company monetized its fourth quarter fixed price derivative contracts. The proceeds from this monetization of approximately $4.4 million will be used to pay down our credit facility. Simultaneously, the Company entered into new fixed price swaps as follows: Contract Periods Daily Volume (Bbl) Swap Price (per Bbl) 2016 (October - December) 2,500 $ 43.25 2017 1,300 $ 44.55 2018 1,500 $ 46.39 |
Supplemental Oil and Gas Disclo
Supplemental Oil and Gas Disclosures (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Supplemental Oil and Gas Disclosures (Unaudited) | Supplemental Oil and Gas Disclosures (Unaudited) Information in the following tables is inclusive of Canadian operations through October 2014, which are presented in the basic financial statements as discontinued operations. The accompanying table presents information concerning the Company’s oil and gas producing activities inclusive of discontinued operations “Disclosures about Oil and Gas Producing Activities.” Capitalized costs relating to oil and gas producing activities are as follows: Years Ended December 31 2014 2015 (In thousands) Proved oil and gas properties $ 716,922 $ 787,683 Unproved properties — — Total 716,922 787,683 Accumulated depreciation, depletion, amortization and impairment (423,819 ) (590,432 ) Net capitalized costs $ 293,103 $ 197,251 Cost incurred in oil and gas property acquisition and development activities are as follows: Years Ended December 31 2013 2014 2015 (In thousands) Development costs $ 93,878 $ 189,322 $ 68,631 Exploration costs — — — Property acquisition costs — — — Unproved — — — $ 93,878 $ 189,322 $ 68,631 The results of operations for oil and gas producing activities, inclusive of discontinued operations, for the three years ended December 31, 2013, 2014 and 2015 are as follows: Years Ended December 31, 2013 2014 2015 (In thousands) Revenues $ 94,275 $ 134,883 $ 67,002 Production costs (33,871 ) (38,146 ) (29,753 ) Depreciation, depletion, and amortization (26,072 ) (42,945 ) (38,040 ) Proved property impairment (6,025 ) — (128,573 ) Results of operations from oil and gas producing activities (excluding corporate overhead and interest costs) $ 28,307 $ 53,792 $ (129,364 ) Depletion rate per barrel of oil equivalent $ 16.59 $ 20.39 $ 17.44 Estimated Quantities of Proved Oil and Gas Reserves The following table presents the Company’s estimate of its net proved oil and gas reserves as of December 31, 2013, 2014, and 2015. Reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of producing oil and gas properties. Accordingly, the estimates are expected to change as future information becomes available. The estimates have been predominately prepared by independent petroleum reserve engineers. Proved oil and gas reserves are the estimated quantities of oil and gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed oil and gas reserves are those expected to be recovered through existing wells with existing equipment and operating methods. All of the Company’s proved reserves are located in the continental United States. Proved reserves were estimated in accordance with guidelines established by the SEC and the FASB, which require that reserve estimates be prepared under existing economic and operating conditions with no provision for price and cost escalations except by contractual arrangements; therefore, the unweighted average prior 12-month-first-day-of-the-month commodity prices and year-end costs were used in estimating reserve volumes and future net cash flows for the periods presented. For the period ending December 31, 2015, proved producing reserves decreased by approximately 6.6 MMBOE, net, due primarily to shortened economic lives resulting from lower product price forecasts. The Company added 28 new proved undeveloped Bakken locations during 2015 on the Company’s prospect acreage in McKenzie County, North Dakota, accounting for approximately 6.5 MMBOE of net reserves, 20 of which are in the Three Forks (second bench) locations which were proved during 2015 by local development results. There were also 8 downspaced locations added on the Yellowstone Unit by virtue of the fact that operatorship of that unit should pass to Abraxas, thereby allowing the implementation of the Company’s standard Bakken spacing plan. The Company also gained proved undeveloped reserves of approximately 1.4 MMBOE net, due to the change in classification of 21 probable and possible undeveloped Bakken cases into the proved category. These locations achieved proved status by virtue of offsetting development activity during 2015. An equivalent volume of reserves was removed from the probable and possible undeveloped category as a result of this change in classification. The Company also added 6 new Montoya proved undeveloped locations on the Company’s prospect acreage in Ward County, Texas. These locations were added based on the performance of existing Montoya producers on the subject leasehold. Net reserves of approximately 6.5 MMBOE are attributable to these new locations. The Company dropped 38 South Texas Eagle Ford proved undeveloped cases from its reserve report due to lack of economic viability at the lower commodity prices. These cases represented approximately 7.8 MMBOE of net reserves. Oil NGL Gas Oil Equivalents (MBbl) (MBbl) (MMcf) (MBoe) Proved developed and undeveloped reserves: Balance at December 31, 2012 17,342 2,614 61,184 30,152 Revisions of previous estimates 797 202 (5,123 ) 145 Extensions and discoveries 10,411 335 3,610 11,348 Sales of minerals in place (6,785 ) (963 ) (8,141 ) (9,105 ) Production (850 ) (150 ) (3,421 ) (1,570 ) Balance at December 31, 2013 20,915 2,038 48,109 30,970 Revisions of previous estimates 2,697 1,021 7,383 4,950 Extensions and discoveries 7,780 868 6,893 9,797 Sales of minerals in place (608 ) (12 ) (3,614 ) (1,223 ) Production (1,394 ) (207 ) (2,918 ) (2,088 ) Balance at December 31, 2014 29,390 3,708 55,853 42,406 Revisions of previous estimates (9,301 ) (389 ) (7,017 ) (10,859 ) Extensions and discoveries 5,495 3,475 29,387 13,867 Sales of minerals in place (13 ) — (181 ) (43 ) Production (1,440 ) (238 ) (3,015 ) (2,181 ) Balance at December 31, 2015 24,131 6,556 75,027 43,190 Total Oil NGL Gas Oil Equivalents (MBbl) (MBbl) (MMcf) (MBoe) (In thousands) Proved Developed Reserves: December 31, 2013 6,846 1,464 31,572 13,572 December 31, 2014 10,162 2,006 34,677 17,948 December 31, 2015 10,022 1,956 31,298 17,194 Proved Undeveloped Reserves: December 31, 2013 14,068 572 16,537 17,397 December 31, 2014 19,228 1,702 21,176 24,459 December 31, 2015 14,109 4,599 43,729 25,996 Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves The Company’s proved oil and gas reserves have been estimated by the Company with the assistance of an independent petroleum engineering firm (DeGolyer & MacNaughton) as of December 31, 2013, 2014 and 2015 The following information has been prepared in accordance with SEC rules and accounting standards based on the 12 -month first-day-of-the-month unweighted average prices in accordance with provisions of the FASB’s Accounting Standards Update No. 2010-03, “Extractive Activities—Oil and Gas (Topic 932).” Future cash inflows were reduced by estimated future production and development costs based on year-end costs to determine pre-tax cash inflows. Future net cash flows have not been adjusted for commodity derivative contracts outstanding at the end of each year. Future income taxes were computed by applying the statutory tax rate to the excess of pre-tax cash inflows over the tax basis and net operating losses associated with the properties. Since prices used in the calculation are average prices for 2015, the standardized measure could vary significantly from year to year based on the market conditions that occurred during a given year. The technical personnel responsible for preparing the reserve estimates at DeGolyer and MacNaughton meet the requirements regarding qualifications, independence, objectivity, and confidentiality set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers. DeGolyer and MacNaughton is an independent firm of petroleum engineers, geologists, geophysicists, and petrophysicists; they do not own an interest in our properties and are not employed on a contingent fee basis. All reports by DeGolyer and MacNaughton were developed utilizing studies performed by DeGolyer and MacNaughton and assisted by the Engineering and Operations departments of Abraxas. Reserves are estimated by independent petroleum engineers. The report of DeGolyer and MacNaughton dated February 4, 2016, which contains further discussions of the reserve estimates and evaluations prepared by DeGolyer and MacNaughton as well as the qualifications of DeGolyer and MacNaughton’s technical personnel responsible for overseeing such estimates and evaluations is attached as Exhibit 99.1 to this report. Estimates of proved reserves at December 31, 2013, 2014 and 2015 were based on studies performed by our independent petroleum engineers assisted by the Engineering and Operations departments of Abraxas. The Engineering department is directly responsible for Abraxas’ reserve evaluation process. The Vice President of Engineering is the manager of this department and is the primary technical person responsible for this process. The Vice President of Engineering holds a Bachelor of Science degree in Petroleum Engineering and has 37 years of experience in reserve evaluations. The Vice President of Engineering is a Registered Professional Engineer in the State of Texas. The operations department of Abraxas assisted in the process. The projections should not be viewed as realistic estimates of future cash flows, nor should the “standardized measure” be interpreted to represent the fair market value of the Company’s proved oil and gas reserves. An estimate of fair market value would also take into account, among other factors, the recovery of reserves not classified as proved, anticipated future changes in prices and costs, and a discount factor more representative of the time value of money and the risks inherent in reserve estimates. Future net cash inflows after income taxes were discounted using a 10% annual discount rate to arrive at the Standardized Measure. The table below sets forth the Standardized Measure of our proved oil and gas reserves for the three years ended December 31, 2013, 2014 and 2015: Years Ended December 31, 2013 2014 2015 (In thousands) Future cash inflows $ 2,244,846 $ 2,988,464 $ 1,241,334 Future production costs (754,722 ) (921,977 ) (438,784 ) Future development costs (467,206 ) (557,782 ) (338,316 ) Future income tax expense (244,394 ) (373,095 ) — Future net cash flows 778,524 1,135,610 464,234 Discount (437,539 ) (623,053 ) (266,983 ) Standardized Measure of discounted future net cash relating to proved reserves $ 340,985 $ 512,557 $ 197,251 Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves The following is an analysis of the changes in the Standardized Measure: Year Ended December 31, 2013 2014 2015 (In thousands) Standardized Measure, beginning of year $ 278,145 $ 340,985 $ 512,557 Sales and transfers of oil and gas produced, net of production costs (60,403 ) (96,364 ) (37,249 ) Net change in prices and development and production costs from prior year 169,969 150,504 (488,160 ) Extensions, discoveries, and improved recovery, less related costs 156,456 147,275 63,341 Sales of minerals in place (125,533 ) (15,042 ) (197 ) Revisions of previous quantity estimates 2,930 74,390 (49,602 ) Change in timing and other (62,861 ) (82,653 ) 20,419 Change in future income tax expense (45,532 ) (40,636 ) 124,886 Accretion of discount 27,814 34,098 51,256 Standardized Measure, end of year $ 340,985 $ 512,557 $ 197,251 The standardized measure is based on the following oil and gas prices over the life of the properties as of the following dates: Year Ended December 31, 2013 2014 2015 Oil (per Bbl) (1) $ 97.33 $ 95.28 $ 50.12 Gas (per MMbtu) (2) $ 3.67 $ 4.35 $ 2.63 Oil (per Bbl) (3) $ 95.90 $ 87.11 $ 41.25 Gas (per MMBtu) (4) $ 3.65 $ 5.15 $ 2.36 NGL’s (per Bbl) (5) $ 31.98 $ 37.91 $ 10.52 _____________________ (1) The quoted oil price for the year ended December 31 of each year, 2013, 2014 and 2015 is the 12-month unweighted average first-day-of-the-month West Texas Intermediate spot price for each month of 2013, 2014 and 2015. (2) The quoted gas price for the year ended December 31, 2013, 2014 and 2015 is the 12-month unweighted average first-day-of-the-month Henry Hub spot price for each month of 2013, 2014 and 2015. (3) The oil price is the realized price at the wellhead as of December 31 of each year after the appropriate differentials have been applied. (4) The gas price is the realized price at the wellhead as of December 31 of each year after the appropriate differentials have been applied. (5) The NGL price is the realized price as of December 31 of each year after the appropriate differentials have been applied. |
Organization and Significant 24
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations We are an independent energy company primarily engaged in the acquisition, exploitation, development and production of oil and gas in the United States. Our oil and gas assets are located in three operating regions in the United States, the Rocky Mountain, Permian Basin and onshore Gulf Coast. 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 recognized in connection with contractual drilling services performed in connection with properties in which the Company or its affiliates holds an ownership, or other economic interest. Any income not recognized as a result of this limitation is credited to the full cost pool and recognized through lower amortization as reserves are produced. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The process of estimating oil and gas reserves in accordance with SEC requirements is complex and involves decisions and assumptions in evaluating the available geological, geophysical, engineering and economic data. Accordingly, these estimates are imprecise. Actual future production, oil and gas prices, revenues, taxes, capital expenditures, operating expenses and quantities of recoverable oil and gas reserves most likely will vary from those estimated. Any significant variance could materially affect the estimated quantities and present value of our reserves. In addition, we may adjust estimates of proved reserves to reflect production history, results of exploration and development, prevailing oil and gas prices and other factors, many of which are beyond our control. The most significant estimates pertain to proved oil, natural gas and NGLs reserves and related cash flow estimates used in impairment tests of oil and gas properties, the fair value of assets and liabilities acquired in business combinations, derivative contracts, asset retirement obligations, accrued oil and gas revenues and expenses, as well as estimates of expenses related to depreciation, depletion, amortization and accretion. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially expose the Company to credit risk consist principally of trade receivables and derivative contracts. Accounts receivable are generally from companies with significant oil and gas marketing activities. The Company performs ongoing credit evaluations and, generally, requires no collateral from its customers. The counterparties to our derivative contracts are the same financial institutions from which we have outstanding debt; accordingly, we believe our exposure to credit risk to these counterparties is currently mitigated in part by this, as well as the current overall financial condition of the counterparties. The Company maintains any cash and cash equivalents in excess of federally insured limits in prominent financial institutions considered by the Company to be of high credit quality. |
Cash and Equivalents | Cash and Equivalents Cash and cash equivalents include cash on hand, demand deposits and short-term investments with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable Accounts receivable are reported net of an allowance for doubtful accounts of approximately $407,000 and $296,000 at December 31, 2014 and 2015, respectively. The allowance for doubtful accounts is determined based on the Company's historical losses, as well as a review of certain accounts. Accounts are charged off when collection efforts have failed and the account is deemed uncollectible. |
Oil and Gas Properties | 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 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 unamortized cost or the cost ceiling, defined as the sum of the present value of estimated future net revenues from proved reserves based on unescalated prices discounted at 10 percent , 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. Costs in excess of the present value of estimated future net revenues are charged to proved property impairment expense. No gain or loss is recognized upon sale or disposition of oil and gas properties for full cost accounting companies with proceeds accounted for as an adjustment of capitalized cost. An exception to this rule occurs when the adjustment to the full cost pool results in a significant alteration of the relationship between capitalized cost and proved reserves. The Company applies the full cost ceiling test on a quarterly basis on the date of the latest balance sheet presented. For the years ended December 31, 2013 and 2014, our net capitalized costs of oil and gas properties did not exceed the present value of our estimated proved reserves. For the year ended December 31, 2015, our capitalized cost of oil and gas properties exceeded the present value of our estimated proved reserves by $128.6 million , resulting in the recognition of a proved property impairment of $128.6 million . However, the impairment calculations did not consider the positive impact of our commodity derivative positions as generally accepted accounting principles only allow the inclusion of derivatives designated as cash flow hedges. |
Other Property and Equipment | Other Property and Equipment Other property and equipment are recorded on the basis of cost. Depreciation of other property and equipment is provided over the estimated useful lives using the straight-line method. Major renewals and improvements are recorded as additions to the property and equipment accounts. Repairs that do not improve or extend the useful lives of assets are expensed. |
Estimates of Proved Oil and Gas Reserves | Estimates of Proved Oil and Gas Reserves Estimates of our proved reserves included in this report are prepared in accordance with GAAP and SEC guidelines. The accuracy of a reserve estimate is a function of: • the quality and quantity of available data; • the interpretation of that data; • the accuracy of various mandated economic assumptions; and • the judgment of the persons preparing the estimate. Our proved reserve information included in this report was based on studies performed by our independent petroleum engineers assisted by the Engineering and Operations departments of Abraxas. Estimates prepared by other third parties may be higher or lower than those included herein. Because these estimates depend on many assumptions, all of which may substantially differ from future actual results, reserve estimates will be different from the quantities of oil and gas that are ultimately recovered. In addition, results of drilling, testing and production after the date of an estimate may cause material revisions to the estimate. In accordance with SEC requirements, we based the estimated discounted future net cash flows from proved reserves on the average of oil and gas prices based on the unweighted average 12 month first-day-of-month pricing. Future prices and costs may be materially higher or lower than these prices and costs which would impact the estimated value of our reserves. The estimates of proved reserves materially impact depreciation, depletion and amortization, or DD&A expense. If the estimates of proved reserves decline, the rate at which we record DD&A expense will increase, reducing future net income. Such a decline may result from lower commodity prices, which may make it uneconomic to drill for and produce higher cost fields. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company enters into agreements to hedge the risk of future oil and gas price fluctuations. Such agreements are in the form of fixed price swaps and three way collars, which limit the impact of price fluctuations with respect to the Company’s sale of oil and gas. While it is never management’s intention to hold or issue derivative instruments for speculative trading purposes, conditions could arise where actual production is less than estimated which could, result in overhedged volumes. All derivative instruments are recorded on the Consolidated Balance Sheets at fair value as either short-term or long-term assets or liabilities based on their anticipated settlement date. The derivative instruments the Company utilizes are based on index prices that may and often do differ from the actual oil and gas prices realized in its operations. These variations often result in a lack of adequate correlation to enable these derivative instruments to qualify for hedge accounting rules as prescribed by Accounting Standards Codification (“ASC”) 815. Accordingly, the Company does not account for its derivative instruments as cash flow hedges for financial reporting purposes. Therefore, changes in fair value of these derivative instruments are recognized in earnings and included in net gains (losses) on commodity derivative contracts in the Consolidated Statements of Operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company includes fair value information in the notes to consolidated financial statements when the fair value of its financial instruments is materially different from the carrying value. The carrying value of those financial instruments that are classified as current approximates fair value because of the short maturity of these instruments. For noncurrent financial instruments, the Company uses quoted market prices or, to the extent that there are no available quoted market prices, market prices for similar instruments. |
Share-Based Payments | Share-Based Payments Options granted are valued at the date of grant and expense is recognized over the vesting period. The Company currently utilizes a standard option pricing model (Black-Scholes) to measure the fair value of stock options granted to employees and directors. 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 value of such restricted stock is determined using the market price on the grant date and expense is recorded over the vesting period. For the years ended December 31, 2013, 2014 and 2015, stock-based compensation was approximately $2.1 million , $2.7 million and $3.9 million , respectively. |
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 noncapital 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 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 we amortize these costs as a component of our depletion expense in the accompanying consolidated financial statements. Each year, the Company reviews, and to the extent necessary, revises its asset retirement obligation estimates. |
Revenue Recognition and Major Purchasers | Revenue Recognition and Major Purchasers The Company recognizes oil and gas revenue from its interest in producing wells as oil and gas is sold from those wells, net of royalties. The Company utilizes the sales method to account for gas production imbalances. Under this method, income is recorded based on the Company’s net revenue interest in production taken for delivery. The Company had no material gas imbalances at December 31, 2014 and 2015. During 2013, two purchasers accounted for 49% of oil and gas revenues. During 2014, two purchasers accounted for 62% of oil and gas revenues. During 2015, one customer accounted for 54% of our oil and gas revenues. |
Deferred Financing Fees | Deferred Financing Fees Deferred financing fees are being amortized on the effective yield basis over the term of the related debt arrangements. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect with respect to taxable income in the years in which those temporary differences are expected to be recovered or settled. Uncertainties exist as to the future utilization of the operating loss carryforwards. Therefore, we have established a valuation allowance of $103.7 million for deferred tax assets at December 31, 2015. |
Accounting for Uncertainty in Income Taxes | Accounting for Uncertainty in Income Taxes Evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent reporting period in which the threshold is no longer met. Penalties and interest are classified as income tax expense. |
Other Comprehensive Income (Loss) | New Accounting Standards and Disclosures The Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) in May 2014 which provides accounting guidance for all revenue arising from contracts to provide goods or services to customers. The requirements from the new ASU are effective for interim and annual periods beginning after December 15, 2016, and early adoption is not permitted. The standard allows for either full retrospective adoption or modified retrospective adoption. At this time, we are evaluating the guidance to determine the method of adoption and the impact of this ASU on our financial statements and related disclosures, if any. The FASB issued ASU 2015-03, Interest – Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15, Interest – Imputation of Interest (Topic 835): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. These ASUs require debt issuance costs related to a recognized debt liability, except for those related to revolving credit facilities, to be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability rather than as an asset. These ASUs are effective beginning January 1, 2016 and will be applied using the retrospective approach. These ASUs will not have a material impact on Abraxas's consolidated financial statements and related disclosures. In August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements”, codifies an SEC staff announcement that entities are permitted to defer and present debt issuance costs related to line-of-credit arrangements as assets. The ASU clarifies that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The ASU is effective immediately for both public business entities and non-public entities. Abraxas has elected to follow this presentation guidance. The FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. This ASU is effective for annual and interim periods beginning in 2017 and can be applied prospectively or retrospectively, with early adoption permitted. This ASU will be adopted effective January 1, 2016 and will be applied using the retrospective approach. This ASU will not have an impact on Abraxas's consolidated financial statements and related disclosures. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (“ASU No. 2015-16”) to simplify the accounting for adjustments made to provisional amounts recognized in a business combination by eliminating the requirement to retrospectively account for those adjustments. The amendments under ASU No. 2015-16 require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment In February 2016, the FASB issued ASU 2016-02 “Leases," which supersedes ASC 840 “Leases” and creates a new topic, ASC 842 "Leases." This update requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier application permitted. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the effect of this update on our consolidated financial statements and related disclosures. In August 2014, the FASB issued updated guidance related to determining whether substantial doubt exists about an entity's ability to continue as a going concern. The amendment provides guidance for determining whether conditions or events give rise to substantial doubt that an entity has the ability to continue as a going concern within one year following issuance of the financial statements, and requires specific disclosures regarding the conditions or events leading to substantial doubt. The updated guidance is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2016. Earlier adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. |
Organization and Significant 25
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Asset Retirement Obligations | The following table summarizes the Company’s asset retirement obligations during the two years ended December 31: 2014 2015 (in thousands) Beginning asset retirement obligation $ 9,888 $ 9,495 New wells placed on production and other 444 307 Deletions related to property disposals and plugging costs (1,318 ) (793 ) Accretion expense 559 565 Revisions 198 105 Discontinued operations (276 ) — Ending asset retirement obligation $ 9,495 $ 9,679 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | The following is a description of the Company’s debt as of December 31, 2014 and 2015, respectively: December 31, December 31, (In thousands) Senior secured credit facility $ 70,000 $ 134,000 Rig loan agreement 4,456 2,620 Real estate lien note 4,333 4,112 78,789 140,732 Less current maturities (2,235 ) (2,330 ) $ 76,554 $ 138,402 |
Maturities of Long-term Debt | Maturities of long-term debt are as follows: Year ending December 31, (In thousands) 2016 $ 2,330 2017 786 2018 134,262 2019 273 2020 285 Thereafter 2,796 $ 140,732 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Major Components of Property and Equipment | The major components of property and equipment, at cost, are as follows: Estimated Useful Life December 31, 2014 2015 Years (In thousands) Oil and gas properties — $ 716,922 $ 787,683 Equipment and other 3-39 18,608 18,866 Drilling rig 15 22,075 22,578 $ 757,605 $ 829,127 |
Stock-based Compensation, Opt28
Stock-based Compensation, Option Plans and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted Average Assumptions Used in Calculating Fair Value of Options | The Company utilizes a standard option pricing model (Black-Scholes) to measure the fair value of stock options granted to employees and directors. The fair value for these options was estimated at the date of grant using the following weighted average assumptions for 2013, 2014 and 2015: 2013 2014 2015 Weighted average value per option granted during the period $ 1.73 $ 2.44 $ 2.37 Assumptions: Forfeiture rate (1) 4.1 % 4.2 % 4.5 % Expected dividend yield (2) — % — % — % Volatility (3) 81.2 % 80.7 % 81.1 % Risk free interest rate (4) 1.24 % 2.05 % 1.92 % Expected life (years) (5) 6.5 6.6 7.0 Fair value of options granted (in thousands) $ 1,444 $ 2,666 $ 3,792 (1) The estimated future forfeiture rate is based on the Company’s historical forfeiture rate. (2) The dividend yield is based on the fact the Company does not pay any dividends. (3) The volatility is based on the historical volatility of our stock for a period approximating the expected life. (4) The risk-free interest rate is based on the observed U.S. Treasury yield curve in effect at the time the options were granted. (5) The expected life was derived based on a weighting between (a) the Company’s historical exercise and forfeiture activity and (b) the average midpoint between vesting and the contractual term. |
Schedule of Stock Option Activity | The following table is a summary of the Company’s stock option activity for the three years ended December 31: Options (000s) Weighted average exercise price Weighted average remaining life Intrinsic value per share Options outstanding December 31, 2012 4,761 $ 2.77 Granted 836 2.43 Exercised (166 ) 1.18 Forfeited/Expired (31 ) 2.58 Options outstanding December 31, 2013 5,400 $ 2.77 Granted 1,091 3.38 Exercised (410 ) 2.71 Forfeited/Expired (196 ) 3.08 Options outstanding December 31, 2014 5,885 $ 2.88 Granted 1,601 $ 3.22 Exercised (164 ) 1.03 Forfeited/Expired (514 ) 4.36 Options outstanding December 31, 2015 6,808 $ 2.89 6.4 $ 2.06 Exercisable at end of year 4,305 5.1 $ 1.97 Other information pertaining to the Company’s stock option activity for the three years ended December 31: 2013 2014 2015 Weighted average grant date fair value of stock options granted (per share) $ 1.73 $ 2.44 $ 2.37 Total fair value of options vested (000’s) $ 1,670 $ 1,718 $ 2,035 Total intrinsic value of options exercised (000’s) $ 275 $ 932 $ 124 |
Range Of Stock Option Prices and Weighted Average Remaining Life of Outstanding Options | The following table represents the range of stock option prices and the weighted average remaining life of outstanding options as of December 31, 2015: Options outstanding Exercisable Number outstanding Weighted average remaining life Weighted average exercise price Number exercisable Weighted average remaining life Weighted average exercise price 0.99 - 1.99 1,519,079 3.99 $ 1.54 1,469,079 3.90 $ 1.52 2.00 - 2.99 1,374,300 6.11 $ 2.34 1,073,104 5.76 $ 2.32 3.00 - 3.99 3,068,600 8.05 $ 3.29 936,795 6.39 $ 3.53 4.00 - 4.99 675,750 $ 4.57 659,250 4.70 $ 4.58 5.00 - 5.99 99,000 8.36 $ 5.39 96,750 8.35 $ 5.38 6.00 - 6.28 71,000 0.26 $ 6.05 70,250 0.18 $ 6.05 6,807,729 4,305,228 |
Schedule of Restricted Stock Activity | The following table is a summary of the Company’s restricted stock activity for the three years ended December 31: Number of Shares Weighted average grant date fair value Unvested December 31, 2012 482,025 $ 3.09 Granted 48,222 2.69 Vested/Released (169,700 ) 2.66 Forfeited (5,307 ) 3.08 Unvested December 31, 2013 355,240 $ 3.24 Granted 1,582,000 3.49 Vested/Released (121,622 ) 3.64 Forfeited (39,528 ) 3.44 Unvested December 31, 2014 1,776,090 $ 3.43 Granted — — Vested/Released (127,729 ) 3.38 Forfeited (5,077 ) 2.56 Unvested December 31, 2015 1,643,284 $ 3.44 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Liabilities and Assets | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax liabilities and assets are as follows: Years Ended December 31, 2013 2014 2015 (In thousands) Deferred tax liabilities: Hedge contracts $ — $ 8,114 $ 9,578 Other 3,152 4,458 4,042 Total deferred tax liabilities 3,152 12,572 13,620 Deferred tax assets: U.S. full cost pool 11,725 3,352 35,689 Canada full cost pool 4,081 — — Capital loss carryforward — 12,325 7,767 Depletion carryforward 4,743 4,936 5,558 U.S. net operating loss carryforward 49,667 50,941 67,531 Canada net operating loss carryforward 5,736 — — Alternative minimum tax credit 1,369 1,104 757 Hedge contracts 1,397 — — Total deferred tax assets 78,718 72,658 117,302 Valuation allowance for deferred tax assets (75,566 ) (60,086 ) (103,682 ) Net deferred tax assets 3,152 12,572 13,620 Net deferred tax $ — $ — $ — |
Components of Provision (Benefit) for Income Taxes | Significant components of the provision (benefit) for income taxes are as follows: Years ended December 31, 2013 2014 2015 (In thousands) Current: Federal $ 632 $ (276 ) $ (242 ) State 68 (11 ) (37 ) $ 700 $ (287 ) $ (279 ) Deferred: Federal $ — $ — $ — Foreign — — — $ — $ — $ — |
Reconciliation of Income Tax Computed At U.S. Federal Statutory Tax Rates to Income Tax Expense | The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense is: Years ended December 31, 2013 2014 2015 (In thousands) Tax (expense) benefit at U.S. statutory rates (35%) $ (13,771 ) $ (22,044 ) $ 44,586 (Increase) decrease in deferred tax asset valuation allowance 14,146 15,480 (43,596 ) Alternative minimum tax — — 568 Rate differential for non US income (574 ) (39 ) — State income taxes (47 ) — — Accrual of prior year federal taxes (2009 and 2013) (81 ) 287 37 Permanent differences (743 ) (950 ) (1,371 ) Return to provision estimate revision — 4,562 — Tax benefit related to the sale of Canadian subsidiary — 3,501 — Increase in asset for partnership distribution — — — Other 370 (510 ) 55 $ (700 ) $ 287 $ 279 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 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: Years ended December 31: 2013 2014 2015 (In thousands, except per share data) Numerator: Net income (loss) from continuing operations $ 46,841 $ 61,951 $ (127,090 ) Net (loss) income from discontinued operations (8,194 ) 1,318 (20 ) $ 38,647 $ 63,269 $ (127,110 ) Denominator: Denominator for basic earnings per share – weighted-average common shares outstanding 92,451 98,835 104,605 Effect of dilutive securities: Stock options and restricted shares 1,087 2,633 — Denominator for diluted earnings per share – adjusted weighted-average shares and assumed exercise of options and restricted shares 93,538 101,468 104,605 Net income (loss) per common share - basic Continuing operations $ 0.51 $ 0.63 $ (1.21 ) Discontinued operations (0.09 ) 0.01 — $ 0.42 $ 0.64 $ (1.21 ) Net income (loss) per common share - diluted Continuing operations $ 0.50 $ 0.61 $ (1.21 ) Discontinued operations (0.09 ) 0.01 — $ 0.41 $ 0.62 $ (1.21 ) |
Quarterly Results of Operatio31
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Results of Operations for Fiscal Quarters | Selected results of operations for each of the fiscal quarters during the years ended December 31, 2014 and 2015 are as follows: 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter (In thousands, except per share data) Year Ended December 31, 2014 Net revenue $ 25,518 $ 33,192 $ 43,874 $ 31,192 Operating income $ 7,695 $ 12,603 $ 16,783 $ 2,842 Net income $ 4,704 $ 3,034 $ 25,399 $ 30,132 Net income per common share – basic $ 0.05 $ 0.03 $ 0.24 $ 0.29 Net income per common share – diluted $ 0.05 $ 0.03 $ 0.24 $ 0.28 Year Ended December 31, 2015 Net revenue $ 18,661 $ 18,944 $ 16,077 $ 13,348 Operating loss $ (4,535 ) $ (1,531 ) $ (63,438 ) $ (72,301 ) Net loss $ (718 ) $ (6,601 ) $ (52,372 ) $ (67,419 ) Net loss per common share – basic $ (0.01 ) $ (0.06 ) $ (0.50 ) $ (0.64 ) Net loss per common share – diluted $ (0.01 ) $ (0.06 ) $ (0.50 ) $ (0.64 ) |
Hedging Program and Derivativ32
Hedging Program and Derivatives (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2015: Fixed Price Swaps: Oil - WTI Contract Periods Daily Volume (Bbl) Swap Price (per Bbl) 2016 948 $ 84.10 2017 608 $ 78.55 Collar contracts combined with short puts (three-way collar): Daily Volume (Bbl) Floor (Long Put) Ceiling (Short Call) Short Put 2016 1,000 $ 60.00 $ 71.00 $ 45.00 |
Collar Contracts | The following table sets forth the summary position of our derivative contracts as of December 31, 2015: Fixed Price Swaps: Oil - WTI Contract Periods Daily Volume (Bbl) Swap Price (per Bbl) 2016 948 $ 84.10 2017 608 $ 78.55 Collar contracts combined with short puts (three-way collar): Daily Volume (Bbl) Floor (Long Put) Ceiling (Short Call) Short Put 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 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 Fair Value of Derivative Instruments as of December 31, 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 $ 18,902 Derivatives – current $ — Commodity price derivatives Derivatives – long-term 8,463 Derivatives – long-term — $ 27,365 $ — |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | 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 December 31, 2014 and 2015, 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 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 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, 2015 Assets: NYMEX Fixed Price Derivative contracts $ — $ 21,731 $ — $ 21,731 NYMEX Collars — — 5,634 5,634 Total Assets $ — $ 21,731 $ 5,634 $ 27,365 Liabilities: NYMEX Fixed Price Derivative contracts $ — $ — $ — $ — Total Liabilities $ — $ — $ — $ — |
Additional Information for Recurring Fair Value Measurements Using Significant Unobservable Inputs | Additional information for the Company's recurring fair value measurements using significant unobservable inputs (Level 3 inputs) for the year ended December 31, 2015. (In thousands) Unobservable inputs at January 1, 2015 $ — Changes in market value 8,474 Settlements during the period (2,840 ) Unobservable inputs at December 31, 2015 $ 5,634 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | The following is a summary of the net assets of Canadian Abraxas as of October 31, 2014. October 31, 2014 Current assets $ 252 Oil and gas properties - net 659 Other assets — Total assets 911 Accounts payable 275 Accrued expenses 280 Total liabilities 555 Net assets of discontinued operation $ 356 |
Subsequent Event (Tables)
Subsequent Event (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Schedule of Fixed Price Derivatives | Simultaneously, the Company entered into new fixed price swaps as follows: Contract Periods Daily Volume (Bbl) Swap Price (per Bbl) 2016 (October - December) 2,500 $ 43.25 2017 1,300 $ 44.55 2018 1,500 $ 46.39 |
Supplemental Oil and Gas Disc36
Supplemental Oil and Gas Disclosures (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Capitalized Costs Relating to Oil and Gas Producing Activities | The accompanying table presents information concerning the Company’s oil and gas producing activities inclusive of discontinued operations “Disclosures about Oil and Gas Producing Activities.” Capitalized costs relating to oil and gas producing activities are as follows: Years Ended December 31 2014 2015 (In thousands) Proved oil and gas properties $ 716,922 $ 787,683 Unproved properties — — Total 716,922 787,683 Accumulated depreciation, depletion, amortization and impairment (423,819 ) (590,432 ) Net capitalized costs $ 293,103 $ 197,251 |
Cost Incurred in Oil and Gas Property Acquisition and Development Activities | Cost incurred in oil and gas property acquisition and development activities are as follows: Years Ended December 31 2013 2014 2015 (In thousands) Development costs $ 93,878 $ 189,322 $ 68,631 Exploration costs — — — Property acquisition costs — — — Unproved — — — $ 93,878 $ 189,322 $ 68,631 |
Results of Operations for Oil and Gas Producing Activities | The results of operations for oil and gas producing activities, inclusive of discontinued operations, for the three years ended December 31, 2013, 2014 and 2015 are as follows: Years Ended December 31, 2013 2014 2015 (In thousands) Revenues $ 94,275 $ 134,883 $ 67,002 Production costs (33,871 ) (38,146 ) (29,753 ) Depreciation, depletion, and amortization (26,072 ) (42,945 ) (38,040 ) Proved property impairment (6,025 ) — (128,573 ) Results of operations from oil and gas producing activities (excluding corporate overhead and interest costs) $ 28,307 $ 53,792 $ (129,364 ) Depletion rate per barrel of oil equivalent $ 16.59 $ 20.39 $ 17.44 |
Proved Developed and Undeveloped Reserves | Proved reserves were estimated in accordance with guidelines established by the SEC and the FASB, which require that reserve estimates be prepared under existing economic and operating conditions with no provision for price and cost escalations except by contractual arrangements; therefore, the unweighted average prior 12-month-first-day-of-the-month commodity prices and year-end costs were used in estimating reserve volumes and future net cash flows for the periods presented. For the period ending December 31, 2015, proved producing reserves decreased by approximately 6.6 MMBOE, net, due primarily to shortened economic lives resulting from lower product price forecasts. The Company added 28 new proved undeveloped Bakken locations during 2015 on the Company’s prospect acreage in McKenzie County, North Dakota, accounting for approximately 6.5 MMBOE of net reserves, 20 of which are in the Three Forks (second bench) locations which were proved during 2015 by local development results. There were also 8 downspaced locations added on the Yellowstone Unit by virtue of the fact that operatorship of that unit should pass to Abraxas, thereby allowing the implementation of the Company’s standard Bakken spacing plan. The Company also gained proved undeveloped reserves of approximately 1.4 MMBOE net, due to the change in classification of 21 probable and possible undeveloped Bakken cases into the proved category. These locations achieved proved status by virtue of offsetting development activity during 2015. An equivalent volume of reserves was removed from the probable and possible undeveloped category as a result of this change in classification. The Company also added 6 new Montoya proved undeveloped locations on the Company’s prospect acreage in Ward County, Texas. These locations were added based on the performance of existing Montoya producers on the subject leasehold. Net reserves of approximately 6.5 MMBOE are attributable to these new locations. The Company dropped 38 South Texas Eagle Ford proved undeveloped cases from its reserve report due to lack of economic viability at the lower commodity prices. These cases represented approximately 7.8 MMBOE of net reserves. Oil NGL Gas Oil Equivalents (MBbl) (MBbl) (MMcf) (MBoe) Proved developed and undeveloped reserves: Balance at December 31, 2012 17,342 2,614 61,184 30,152 Revisions of previous estimates 797 202 (5,123 ) 145 Extensions and discoveries 10,411 335 3,610 11,348 Sales of minerals in place (6,785 ) (963 ) (8,141 ) (9,105 ) Production (850 ) (150 ) (3,421 ) (1,570 ) Balance at December 31, 2013 20,915 2,038 48,109 30,970 Revisions of previous estimates 2,697 1,021 7,383 4,950 Extensions and discoveries 7,780 868 6,893 9,797 Sales of minerals in place (608 ) (12 ) (3,614 ) (1,223 ) Production (1,394 ) (207 ) (2,918 ) (2,088 ) Balance at December 31, 2014 29,390 3,708 55,853 42,406 Revisions of previous estimates (9,301 ) (389 ) (7,017 ) (10,859 ) Extensions and discoveries 5,495 3,475 29,387 13,867 Sales of minerals in place (13 ) — (181 ) (43 ) Production (1,440 ) (238 ) (3,015 ) (2,181 ) Balance at December 31, 2015 24,131 6,556 75,027 43,190 Total Oil NGL Gas Oil Equivalents (MBbl) (MBbl) (MMcf) (MBoe) (In thousands) Proved Developed Reserves: December 31, 2013 6,846 1,464 31,572 13,572 December 31, 2014 10,162 2,006 34,677 17,948 December 31, 2015 10,022 1,956 31,298 17,194 Proved Undeveloped Reserves: December 31, 2013 14,068 572 16,537 17,397 December 31, 2014 19,228 1,702 21,176 24,459 December 31, 2015 14,109 4,599 43,729 25,996 |
Future Net Cash Inflows after Income Taxes Discounted At 10% Annual Discount Rate to Arrive At Standardized Measure | Future net cash inflows after income taxes were discounted using a 10% annual discount rate to arrive at the Standardized Measure. The table below sets forth the Standardized Measure of our proved oil and gas reserves for the three years ended December 31, 2013, 2014 and 2015: Years Ended December 31, 2013 2014 2015 (In thousands) Future cash inflows $ 2,244,846 $ 2,988,464 $ 1,241,334 Future production costs (754,722 ) (921,977 ) (438,784 ) Future development costs (467,206 ) (557,782 ) (338,316 ) Future income tax expense (244,394 ) (373,095 ) — Future net cash flows 778,524 1,135,610 464,234 Discount (437,539 ) (623,053 ) (266,983 ) Standardized Measure of discounted future net cash relating to proved reserves $ 340,985 $ 512,557 $ 197,251 |
Analysis of Changes in Standardized Measure | The following is an analysis of the changes in the Standardized Measure: Year Ended December 31, 2013 2014 2015 (In thousands) Standardized Measure, beginning of year $ 278,145 $ 340,985 $ 512,557 Sales and transfers of oil and gas produced, net of production costs (60,403 ) (96,364 ) (37,249 ) Net change in prices and development and production costs from prior year 169,969 150,504 (488,160 ) Extensions, discoveries, and improved recovery, less related costs 156,456 147,275 63,341 Sales of minerals in place (125,533 ) (15,042 ) (197 ) Revisions of previous quantity estimates 2,930 74,390 (49,602 ) Change in timing and other (62,861 ) (82,653 ) 20,419 Change in future income tax expense (45,532 ) (40,636 ) 124,886 Accretion of discount 27,814 34,098 51,256 Standardized Measure, end of year $ 340,985 $ 512,557 $ 197,251 |
Oil and Gas Prices Considered In Standardized Measure of Discounted Future Net Cash Flows | The standardized measure is based on the following oil and gas prices over the life of the properties as of the following dates: Year Ended December 31, 2013 2014 2015 Oil (per Bbl) (1) $ 97.33 $ 95.28 $ 50.12 Gas (per MMbtu) (2) $ 3.67 $ 4.35 $ 2.63 Oil (per Bbl) (3) $ 95.90 $ 87.11 $ 41.25 Gas (per MMBtu) (4) $ 3.65 $ 5.15 $ 2.36 NGL’s (per Bbl) (5) $ 31.98 $ 37.91 $ 10.52 _____________________ (1) The quoted oil price for the year ended December 31 of each year, 2013, 2014 and 2015 is the 12-month unweighted average first-day-of-the-month West Texas Intermediate spot price for each month of 2013, 2014 and 2015. (2) The quoted gas price for the year ended December 31, 2013, 2014 and 2015 is the 12-month unweighted average first-day-of-the-month Henry Hub spot price for each month of 2013, 2014 and 2015. (3) The oil price is the realized price at the wellhead as of December 31 of each year after the appropriate differentials have been applied. (4) The gas price is the realized price at the wellhead as of December 31 of each year after the appropriate differentials have been applied. (5) The NGL price is the realized price as of December 31 of each year after the appropriate differentials have been applied. |
Organization and Significant 37
Organization and Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)region | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Nature of operations [Abstract] | |||
Number of operating regions in domicile country | region | 3 | ||
Accounts Receivable [Abstract] | |||
Allowance for doubtful accounts | $ 296 | $ 407 | |
Oil and gas properties, full cost method of accounting: | |||
Discount rate used in future net cash flows relating to proved oil and gas reserves (in hundredths) | 10.00% | ||
Proved property impairment | $ 128,573 | 0 | $ 0 |
Share-Based Payments [Abstract] | |||
Stock-based compensation expense | 3,912 | 2,703 | 2,114 |
Entity's asset retirement obligation transactions [Roll Forward] | |||
Beginning asset retirement obligation | 9,495 | 9,888 | |
New wells placed on production and other | 307 | 444 | |
Deletions related to property disposals and plugging costs | (793) | (1,318) | |
Accretion expense | (565) | (559) | (615) |
Revisions | 105 | 198 | |
Discontinued operations | 0 | (276) | |
Ending asset retirement obligation | $ 9,679 | $ 9,495 | $ 9,888 |
Revenue Recognition and Major Purchasers [Abstract] | |||
Entity wide revenue, major customers (in hundredths) | 54.00% | 62.00% | 49.00% |
Entity wide revenue, number of major purchasers of oil and gas | 1 | 2 | 2 |
Income Taxes [Abstract] | |||
Valuation allowance for deferred tax assets | $ 103,682 | $ 60,086 | $ 75,566 |
Divestiture of Non-Core Prope38
Divestiture of Non-Core Properties (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Aug. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Divestiture of Non Core Properties [Abstract] | |||||||
Net proceeds from divestiture of non-core properties | $ 71,400 | $ 2,500 | $ 2,600 | $ 900 | |||
Proceeds from Monetization of Assets | $ 38,300 | ||||||
Proceeds from other property sales during the year | $ 600 | ||||||
Gain (Loss) on Sale of Property | $ 33,400 | $ 0 | $ 0 | $ 33,377 |
Long-Term Debt (Details)
Long-Term Debt (Details) | Jul. 20, 2013USD ($) | Feb. 14, 2012USD ($) | Dec. 31, 2015USD ($)borrowing_base | Dec. 31, 2014USD ($) | Sep. 19, 2011hp |
Long-term debt [Abstract] | |||||
Long-term debt | $ 140,732,000 | $ 78,789,000 | |||
Less current maturities | (2,330,000) | (2,235,000) | |||
Long-term debt – less current maturities | 138,402,000 | 76,554,000 | |||
Maturities of long-term debt [Abstract] | |||||
2,015 | 2,330,000 | ||||
2,016 | 786,000 | ||||
2,017 | 134,262,000 | ||||
2,018 | 273,000 | ||||
2,019 | 285,000 | ||||
Thereafter | 2,796,000 | ||||
Credit Facility [Abstract] | |||||
Maximum borrowing capacity | 300,000,000 | ||||
Current borrowing base | $ 165,000,000 | ||||
Number of reserve reports prepared by independent petroleum engineers | borrowing_base | 1 | ||||
Number of reserve report prepared internally | borrowing_base | 1 | ||||
Number of borrowing base redetermination | borrowing_base | 1 | ||||
Term of borrowing base redetermination | 6 months | ||||
Description of variable rate basis | LIBOR | ||||
Financial covenants, minimum current ratio | 1 | ||||
Financial covenants, interest coverage ratio | 2.50 | ||||
Financial covenants, total debt To EBITDAX ratio | 4 | ||||
Interest coverage ratio | 13.16 | ||||
Total debt to EBITDAX ratio | 3.05 | ||||
Current ratio | 1.37 | ||||
Senior Secured Credit Facility [Member] | |||||
Long-term debt [Abstract] | |||||
Long-term debt | $ 134,000,000 | 70,000,000 | |||
Maturities of long-term debt [Abstract] | |||||
Maturity date of debt instrument | Jun. 30, 2018 | ||||
Percentage added to reference rate (in hundredths) | 0.50% | ||||
Credit Facility [Abstract] | |||||
Market value of property (in hundredths) | 5.00% | ||||
Reduced collateral value (in hundredths) | 5.00% | ||||
Interest rate on credit facility (in hundredths) | 2.92% | ||||
Senior Secured Credit Facility [Member] | Minimum [Member] | |||||
Maturities of long-term debt [Abstract] | |||||
Percentage added to reference rate (in hundredths) | 0.75% | ||||
Credit Facility [Abstract] | |||||
Percentage added to variable rate of interest (in hundredths) | 1.75% | ||||
Senior Secured Credit Facility [Member] | Maximum [Member] | |||||
Maturities of long-term debt [Abstract] | |||||
Percentage added to reference rate (in hundredths) | 1.75% | ||||
Credit Facility [Abstract] | |||||
Percentage added to variable rate of interest (in hundredths) | 2.75% | ||||
Rig Loan Agreement [Member] | |||||
Long-term debt [Abstract] | |||||
Long-term debt | $ 2,620,000 | 4,456,000 | |||
Maturities of long-term debt [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 | $ 4,112,000 | $ 4,333,000 | |||
Real Estate Lien Note [Abstract] | |||||
Fixed interest rate on note (in hundredths) | 4.25% | ||||
Monthly installments of principal and interest | $ 34,354 | ||||
Debt Instrument, Basis Spread on Variable Rate, Expected Rate | 1.00% | ||||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum Expected Rate | 7.25% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 829,127 | $ 757,605 |
Oil and Gas Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 787,683 | 716,922 |
Equipment and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 18,866 | 18,608 |
Equipment and Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Equipment and Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 39 years | |
Drilling Rig [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years | |
Property and equipment | $ 22,578 | $ 22,075 |
Stock-based Compensation, Opt41
Stock-based Compensation, Option Plans and Warrants (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 3,912,000 | $ 2,703,000 | $ 2,114,000 | ||
Director Stock Awards [Abstract] | |||||
Shares reserved for issuance (in shares) | 8,705,319 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Options outstanding, Number (in shares) | 6,807,729 | ||||
Exercisable, Number (in shares) | 4,305,228 | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Forfeiture Rate | 5.00% | 4.00% | 4.00% | ||
Stock-based compensation expense | $ 2,376,000 | $ 1,820,000 | $ 1,700,000 | ||
Weighted average assumptions used in fair value of the options [Abstract] | |||||
Weighted average value per option granted during the period (in dollars per share) | $ 2.37 | $ 2.44 | $ 1.73 | ||
Assumptions [Abstract] | |||||
Expected dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% | ||
Volatility (in hundredths) | 81.10% | 80.70% | 81.20% | ||
Risk free interest rate (in hundredths) | 1.92% | 2.05% | 1.24% | ||
Expected life (years) | 7 years 7 days | 6 years 7 months 6 days | 6 years 6 months | ||
Fair value of options granted | $ 3,792,000 | $ 2,666,000 | $ 1,444,000 | ||
Authorized shares available for grant (in shares) | 6,600,000 | ||||
Options expiration period | 10 years | ||||
Options [Roll Forward] | |||||
Options outstanding, beginning balance (in shares) | 5,885,000 | 5,400,000 | 4,761,000 | ||
Granted (in shares) | 1,601,000 | 1,091,000 | 836,000 | ||
Exercised (in shares) | (164,000) | (410,000) | (166,000) | ||
Forfeited/Expired (in shares) | (514,000) | (196,000) | (31,000) | ||
Options outstanding, ending balance (in shares) | 6,808,000 | 5,885,000 | 5,400,000 | ||
Exercisable at end of year (in shares) | 4,305,000 | ||||
Weighted average exercise price [Roll Forward] | |||||
Options outstanding, beginning balance (in dollars per share) | $ 2.88 | $ 2.77 | $ 2.77 | ||
Granted (in dollars per share) | 3.22 | 3.38 | 2.43 | ||
Exercised (in dollars per share) | 1.03 | 2.71 | 1.18 | ||
Forfeited/Expired (in dollars per share) | 4.36 | 3.08 | 2.58 | ||
Options outstanding, ending balance (in dollars per share) | $ 2.89 | $ 2.88 | 2.77 | ||
Options outstanding weighted average exercise price of options exercisable | |||||
Weighted average remaining life [Abstract] | |||||
Options outstanding ending balance | 6 years 4 months 10 days | ||||
Exercisable at end of year | 5 years 26 days | ||||
Fair value per share [Abstract] | |||||
Options outstanding, ending balance (in dollars per share) | $ 2.06 | ||||
Exercisable at end of year, Fair value (in dollars per share) | 1.97 | ||||
Other information pertaining to stock options activity [Abstract] | |||||
Weighted average grant date fair value of stock options granted (in dollars per share) | $ 2.37 | $ 2.44 | $ 1.73 | ||
Total fair value of options vested | $ 2,035,000 | $ 1,718,000 | $ 1,670,000 | ||
Total intrinsic value of options exercised | 124,000 | 932,000 | 275,000 | ||
Compensation cost related to non-vested awards not yet recognized | 3,777,000 | ||||
Restricted Unit Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 1,536,000 | $ 883,000 | $ 400,000 | ||
Restricted Stock Awards [Abstract] | |||||
Compensation cost not yet recognized | $ 3,291,000 | ||||
Number of Shares [Roll Forward] | |||||
Unvested, Beginning balance (in shares) | 1,776,090 | 355,240 | 482,025 | ||
Granted (in shares) | 0 | 1,582,000 | 48,222 | ||
Vested/Released (in shares) | (127,729) | (121,622) | (169,700) | ||
Forfeited (in shares) | (5,077) | (39,528) | (5,307) | ||
Unvested, Ending balance (in shares) | 1,643,284 | 1,776,090 | 355,240 | ||
Weighted average grant date fair value [Roll Forward] | |||||
Unvested, beginning balance (in dollars per share) | $ 3.43 | $ 3.24 | $ 3.09 | ||
Granted (in dollars per share) | 0 | 3.49 | 2.69 | ||
Vested/Released (in dollars per share) | 3.38 | 3.64 | 2.66 | ||
Forfeited (in dollars per share) | 2.56 | 3.44 | 3.08 | ||
Unvested, Ending balance (in dollars per share) | $ 3.44 | $ 3.43 | $ 3.24 | ||
2005 Directors Plan [Member] | |||||
Director Stock Awards [Abstract] | |||||
Shares reserved for issuance (in shares) | 1,900,000 | ||||
Number of shares to be granted for participation in board and committee meetings as per agreement (in shares) | 25,000 | ||||
Maximum shares that can be awarded to one person (in shares) | 100,000 | ||||
Percentage of exercise price awarded (in hundredths) | 100.00% | ||||
Annual retainer fee | $ 40,000 | $ 27,500 | |||
$0.99 - 1.99 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Stock option plans exercise price range, lower range limit (in dollars per share) | $ 1 | ||||
Stock option plans exercise price range, upper limit (in dollars per share) | $ 1.99 | ||||
Options outstanding, Number (in shares) | 1,519,079 | ||||
Options outstanding, Weighted average remaining life | 3 years 11 months 27 days | ||||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 1.54 | ||||
Exercisable, Number (in shares) | 1,469,079 | ||||
Exercisable, Weighted average remaining life | 3 years 10 months 24 days | ||||
Exercisable, Weighted average exercise price (in dollars per share) | $ 1.52 | ||||
$2.00 - 2.99 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Stock option plans exercise price range, lower range limit (in dollars per share) | 2 | ||||
Stock option plans exercise price range, upper limit (in dollars per share) | $ 2.99 | ||||
Options outstanding, Number (in shares) | 1,374,300 | ||||
Options outstanding, Weighted average remaining life | 6 years 1 month 10 days | ||||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 2.34 | ||||
Exercisable, Number (in shares) | 1,073,104 | ||||
Exercisable, Weighted average remaining life | 5 years 9 months 4 days | ||||
Exercisable, Weighted average exercise price (in dollars per share) | $ 2.32 | ||||
$3.00 - 3.99 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Stock option plans exercise price range, lower range limit (in dollars per share) | 3 | ||||
Stock option plans exercise price range, upper limit (in dollars per share) | $ 3.99 | ||||
Options outstanding, Number (in shares) | 3,068,600 | ||||
Options outstanding, Weighted average remaining life | 8 years 18 days | ||||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 3.29 | ||||
Exercisable, Number (in shares) | 936,795 | ||||
Exercisable, Weighted average remaining life | 6 years 4 months 21 days | ||||
Exercisable, Weighted average exercise price (in dollars per share) | $ 3.53 | ||||
$4.00 - 4.99 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Stock option plans exercise price range, lower range limit (in dollars per share) | 4 | ||||
Stock option plans exercise price range, upper limit (in dollars per share) | $ 4.99 | ||||
Options outstanding, Number (in shares) | 675,750 | ||||
Options outstanding, Weighted average remaining life | |||||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 4.57 | ||||
Exercisable, Number (in shares) | 659,250 | ||||
Exercisable, Weighted average remaining life | 4 years 8 months 12 days | ||||
Exercisable, Weighted average exercise price (in dollars per share) | $ 4.58 | ||||
$5.00 - 5.99 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Stock option plans exercise price range, lower range limit (in dollars per share) | 5 | ||||
Stock option plans exercise price range, upper limit (in dollars per share) | $ 5.99 | ||||
Options outstanding, Number (in shares) | 99,000 | ||||
Options outstanding, Weighted average remaining life | 8 years 4 months 10 days | ||||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 5.39 | ||||
Exercisable, Number (in shares) | 96,750 | ||||
Exercisable, Weighted average remaining life | 8 years 4 months 6 days | ||||
Exercisable, Weighted average exercise price (in dollars per share) | $ 5.38 | ||||
$6.00 - 6.28 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Stock option plans exercise price range, lower range limit (in dollars per share) | 6 | ||||
Stock option plans exercise price range, upper limit (in dollars per share) | $ 6.28 | ||||
Options outstanding, Number (in shares) | 71,000 | ||||
Options outstanding, Weighted average remaining life | 3 months 4 days | ||||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 6.05 | ||||
Exercisable, Number (in shares) | 70,250 | ||||
Exercisable, Weighted average remaining life | 2 months 5 days | ||||
Exercisable, Weighted average exercise price (in dollars per share) | $ 6.05 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 23, 2013 | Dec. 31, 2012 | |
Deferred tax liabilities [Abstract] | |||||
Hedge contracts | $ 9,578 | $ 8,114 | $ 0 | ||
Deferred Tax Liabilities, Other | 4,042 | 4,458 | 3,152 | ||
Total deferred tax liabilities | 13,620 | 12,572 | 3,152 | ||
Deferred tax assets [Abstract] | |||||
U.S. full cost pool | 35,689 | 3,352 | 11,725 | ||
Deferred tax assets additional full cost pool | 0 | 0 | 4,081 | ||
Deferred Tax Assets, Capital Loss Carryforwards | 7,767 | 12,325 | 0 | ||
Depletion carryforward | 5,558 | 4,936 | 4,743 | ||
U.S. net operating loss carryforward | 67,531 | 50,941 | 49,667 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 0 | 0 | 5,736 | ||
Alternative minimum tax credit | 757 | 1,104 | 1,369 | ||
Hedge contracts | 0 | 0 | 1,397 | ||
Total deferred tax assets | 117,302 | 72,658 | 78,718 | ||
Valuation allowance for deferred tax assets | (103,682) | (60,086) | (75,566) | ||
Net deferred tax assets | 13,620 | 12,572 | 3,152 | ||
Net deferred tax | 0 | 0 | 0 | ||
Current [Abstract] | |||||
Federal | (242) | (276) | 632 | ||
State | (37) | (11) | 68 | ||
Current provision (benefit) for income taxes | (279) | (287) | 700 | ||
Deferred [Abstract] | |||||
Federal | 0 | 0 | 0 | ||
Foreign | 0 | 0 | 0 | ||
Deferred provision (benefit) for income taxes | 0 | 0 | 0 | ||
Operating Loss Carryforwards [Line Items] | |||||
Income taxes paid | $ 391 | ||||
Tax Adjustments, Settlements, and Unusual Provisions | 81 | ||||
Reconciliation of income tax computed at U.S federal statutory tax rates [Abstract] | |||||
Tax (expense) benefit at U.S. statutory rates (35%) | 44,586 | (22,044) | (13,771) | ||
(Increase) decrease in deferred tax asset valuation allowance | (43,596) | 15,480 | 14,146 | ||
Alternative minimum tax | 568 | 0 | 0 | ||
Rate differential for non US income | 0 | (39) | (574) | ||
State income taxes | 0 | 0 | (47) | ||
Accrual of prior year federal taxes (2009) | 37 | 287 | (81) | ||
Permanent differences | (1,371) | (950) | (743) | ||
Return to provision estimate revision | 0 | 4,562 | 0 | ||
Tax benefit related to the sale of Canadian subsidiary | 0 | 3,501 | 0 | ||
Increase in asset for partnership distributions | 0 | 0 | 0 | ||
Other | 55 | (510) | 370 | ||
Income tax (expense) benefit | $ 279 | $ 287 | $ (700) | ||
U.S statutory rate (in hundredths) | 35.00% | ||||
Reduction in deferred tax assets | $ 44,600 | ||||
Tax adjustment assessed | 619 | $ 310 | |||
U.S. Tax [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | $ 192,900 | ||||
Expiration dates of operating loss carryforwards | Dec. 31, 2035 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Office Space in Dickinson, North Dakota [Member] | |||
Operating Leased Assets [Line Items] | |||
Rent expense | $ 27,165 | $ 26,265 | $ 26,073 |
Office Space in Lusk, Wyoming [Member] | |||
Operating Leased Assets [Line Items] | |||
Rent expense | 9,000 | 9,000 | 9,000 |
Office Space in Denver, Colorado [Member] | |||
Operating Leased Assets [Line Items] | |||
Rent expense | $ 15,601 | $ 14,554 | $ 2,834 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator [Abstract] | |||||||||||
Net income (loss) from continuing operations | $ (127,090) | $ 61,951 | $ 46,841 | ||||||||
Net (loss) income from discontinued operations | (20) | 1,318 | (8,194) | ||||||||
Net income (loss) | $ (67,419) | $ (52,372) | $ (6,601) | $ (718) | $ 30,132 | $ 25,399 | $ 3,034 | $ 4,704 | $ (127,110) | $ 63,269 | $ 38,647 |
Denominator [Abstract] | |||||||||||
Denominator for basic earnings per share – weighted-average common shares outstanding (shares) | 104,605,000 | 98,835,000 | 92,451,000 | ||||||||
Effect of dilutive securities [Abstract] | |||||||||||
Stock options, restricted shares and warrants (in shares) | 0 | 2,633,000 | 1,087,000 | ||||||||
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) | 104,605,000 | 101,468,000 | 93,538,000 | ||||||||
Earnings Per Share, Basic [Abstract] | |||||||||||
Continuing operations (in dollars per share) | $ (1.21) | $ 0.63 | $ 0.51 | ||||||||
Discontinued operations (in dollars per share) | 0 | 0.01 | (0.09) | ||||||||
Total (in dollars per share) | $ (0.64) | $ (0.50) | $ (0.06) | $ (0.01) | $ 0.29 | $ 0.24 | $ 0.03 | $ 0.05 | (1.21) | 0.64 | 0.42 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Continuing operations (in dollars per share) | (1.21) | 0.61 | 0.50 | ||||||||
Discontinued operations (in dollars per share) | 0 | 0.01 | (0.09) | ||||||||
Total (in dollars per share) | $ (0.64) | $ (0.50) | $ (0.06) | $ (0.01) | $ 0.28 | $ 0.24 | $ 0.03 | $ 0.05 | $ (1.21) | $ 0.62 | $ 0.41 |
Stock options excluded from the calculation of diluted income (loss) per share (in shares) | 624 | 0 | 624 |
Quarterly Results of Operatio45
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenue | $ 13,348 | $ 16,077 | $ 18,944 | $ 18,661 | $ 31,192 | $ 43,874 | $ 33,192 | $ 25,518 | $ 67,030 | $ 133,776 | $ 92,324 |
Operating income (loss) | (72,301) | (63,438) | (1,531) | (4,535) | 2,842 | 16,783 | 12,603 | 7,695 | (141,805) | 39,922 | 23,097 |
Net income (loss) | $ (67,419) | $ (52,372) | $ (6,601) | $ (718) | $ 30,132 | $ 25,399 | $ 3,034 | $ 4,704 | $ (127,110) | $ 63,269 | $ 38,647 |
Net income (loss) per common share - basic (in dollars per share) | $ (0.64) | $ (0.50) | $ (0.06) | $ (0.01) | $ 0.29 | $ 0.24 | $ 0.03 | $ 0.05 | $ (1.21) | $ 0.64 | $ 0.42 |
Net income (loss) - per common share - diluted (in dollars per share) | $ (0.64) | $ (0.50) | $ (0.06) | $ (0.01) | $ 0.28 | $ 0.24 | $ 0.03 | $ 0.05 | $ (1.21) | $ 0.62 | $ 0.41 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Contribution to 401(k) plan | $ 347,632 | $ 313,899 | $ 284,865 |
Percentage eligible pay for dollar by dollar fixed match (in hundredths) | 1.00% | ||
Employer contribution for each dollar contributed by employee after 1% of eligible pay | $ 0.5 | ||
Maximum percentage of employee gross pay employer can contribute under 401(k) plan (in hundredths) | 5.00% | ||
Employee contribution limit for employees under 50 years of age | $ 18,000 | 17,500 | 17,500 |
Employee contribution limit for employees of 50 years of age or older | $ 24,000 | $ 23,000 | $ 23,000 |
Hedging Program and Derivativ47
Hedging Program and Derivatives (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)bbl$ / bbl | Dec. 31, 2014USD ($) | |
Impact of derivative contracts on balance sheet [Abstract] | ||
Derivative asset - current | $ 18,902 | $ 12,214 |
Derivative asset - long-term | 8,463 | 10,981 |
Derivative Assets | 27,365 | 23,195 |
Derivative liability - current | 0 | 13 |
Derivative Liabilities | $ 0 | 13 |
Oil - WTI [Member] | 2016 [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Daily Volume (in Bbl) | bbl | 948 | |
Swap Price (in dollars per Bbl) | $ / bbl | 84.10 | |
Oil - WTI [Member] | 2017 [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Daily Volume (in Bbl) | bbl | 608 | |
Swap Price (in dollars per Bbl) | $ / bbl | 78.55 | |
Collar Contract 2016 [Member] | Not Designated as Hedging Instrument [Member] | Three-way Collar [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Daily Volume (in Bbl) | bbl | 1,000 | |
Derivative Asset - Current [Member] | Commodity Price Derivatives [Member] | ||
Impact of derivative contracts on balance sheet [Abstract] | ||
Derivative asset - current | $ 18,902 | 12,214 |
Derivative Asset - Long-Term [Member] | Commodity Price Derivatives [Member] | ||
Impact of derivative contracts on balance sheet [Abstract] | ||
Derivative asset - long-term | 8,463 | 10,981 |
Derivative Liability - Current [Member] | Commodity Price Derivatives [Member] | ||
Impact of derivative contracts on balance sheet [Abstract] | ||
Derivative liability - current | 0 | 13 |
Derivative Liability - Long-Term [Member] | Commodity Price Derivatives [Member] | ||
Impact of derivative contracts on balance sheet [Abstract] | ||
Derivative liability - long-term | $ 0 | $ 0 |
Long Put [Member] | Collar Contract 2016 [Member] | Not Designated as Hedging Instrument [Member] | Three-way Collar [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Derivative, floor | $ / bbl | 60 | |
Short Call [Member] | Collar Contract 2016 [Member] | Not Designated as Hedging Instrument [Member] | Three-way Collar [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Derivative, ceiling | $ / bbl | 71 | |
Short Put [Member] | Collar Contract 2016 [Member] | Not Designated as Hedging Instrument [Member] | Three-way Collar [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Derivative, floor | $ / bbl | 45 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | $ 27,365,000 | $ 23,195,000 |
Liabilities [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 0 | 13,000 |
Derivative Assets (Liabilities) - net [Roll Forward] | ||
Unobservable inputs at January 1, 2015 | 0 | |
Changes in market value | 8,474 | |
Settlements during the period | (2,840) | |
Unobservable inputs at December 31, 2015 | 5,634 | |
Recurring Basis [Member] | ||
Assets [Abstract] | ||
Total Assets | 27,365,000 | 23,195,000 |
Liabilities [Abstract] | ||
Total Liabilities | 0 | 13,000 |
Recurring Basis [Member] | Fixed Price Derivative Contracts [Member] | ||
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 21,731,000 | 23,195,000 |
Liabilities [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 0 | 13,000 |
Recurring Basis [Member] | Collars [Member] | ||
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 5,634,000 | |
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 | 21,731,000 | 23,195,000 |
Liabilities [Abstract] | ||
Total Liabilities | 0 | 13,000 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fixed Price Derivative Contracts [Member] | ||
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 21,731,000 | 23,195,000 |
Liabilities [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 0 | 13,000 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Collars [Member] | ||
Assets [Abstract] | ||
NYMEX Fixed Price Derivative contracts | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Total Assets | 5,634,000 | 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 | $ 5,634,000 |
Discontinued Operations (Detail
Discontinued Operations (Details) - Canadian Abraxas Petroleum, UCL - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended | |
Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale | $ 1,900 | ||
Revenue | $ 1,200 | $ 2,000 | |
Net loss | (600) | $ (8,200) | |
Disposal Group, Including Discontinued Operation, Classified Balance Sheet Disclosures [Abstract] | |||
Current assets | 252 | ||
Oil and gas properties - net | 659 | ||
Other assets | 0 | ||
Total assets | 911 | ||
Accounts payable | 275 | ||
Accrued expenses | 280 | ||
Total liabilities | 555 | ||
Net assets of discontinued operation | $ 356 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Thousands | Mar. 11, 2016USD ($)bbl$ / bbl | Dec. 31, 2015USD ($)bbl$ / bbl | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Subsequent Event [Line Items] | ||||
Monetization of derivative contracts | $ | $ 4,610 | $ 152 | $ 0 | |
Oil - WTI [Member] | 2016 (October - December) [Member] | ||||
Subsequent Event [Line Items] | ||||
Daily Volume (in Bbl) | bbl | 948 | |||
Swap Price (in dollars per Bbl) | $ / bbl | 84.10 | |||
Oil - WTI [Member] | 2017 [Member] | ||||
Subsequent Event [Line Items] | ||||
Daily Volume (in Bbl) | bbl | 608 | |||
Swap Price (in dollars per Bbl) | $ / bbl | 78.55 | |||
Subsequent Event [Member] | Oil - WTI [Member] | ||||
Subsequent Event [Line Items] | ||||
Monetization of derivative contracts | $ | $ 4,400 | |||
Subsequent Event [Member] | Oil - WTI [Member] | 2016 (October - December) [Member] | ||||
Subsequent Event [Line Items] | ||||
Daily Volume (in Bbl) | bbl | 2,500 | |||
Swap Price (in dollars per Bbl) | $ / bbl | 43.25 | |||
Subsequent Event [Member] | Oil - WTI [Member] | 2017 [Member] | ||||
Subsequent Event [Line Items] | ||||
Daily Volume (in Bbl) | bbl | 1,300 | |||
Swap Price (in dollars per Bbl) | $ / bbl | 44.55 | |||
Subsequent Event [Member] | Oil - WTI [Member] | 2018 [Member] | ||||
Subsequent Event [Line Items] | ||||
Daily Volume (in Bbl) | bbl | 1,500 | |||
Swap Price (in dollars per Bbl) | $ / bbl | 46.39 |
Supplemental Oil and Gas Disc51
Supplemental Oil and Gas Disclosures (Unaudited) (Details) bbl in Thousands, Mcf in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Boelocation$ / bblbblMcf | Dec. 31, 2014USD ($)Boe$ / bblbblMcf | Dec. 31, 2013USD ($)Boe$ / bblbblMcf | |
Capitalized costs relating to oil and gas producing activities [Abstract] | |||
Proved oil and gas properties | $ 787,683 | $ 716,922 | |
Unproved properties | 0 | 0 | |
Total | 787,683 | 716,922 | |
Accumulated depreciation, depletion, amortization and impairment | (590,432) | (423,819) | |
Net capitalized costs | 197,251 | 293,103 | |
Cost incurred in oil and gas property acquisition and development activities [Abstract] | |||
Development costs | 68,631 | 189,322 | $ 93,878 |
Exploration costs | 0 | 0 | 0 |
Property acquisition costs | 0 | 0 | 0 |
Unproved | 0 | 0 | 0 |
Total | 68,631 | 189,322 | 93,878 |
Results of operations for oil and gas producing activities [Abstract] | |||
Revenues | 67,002 | 134,883 | 94,275 |
Production costs | (29,753) | (38,146) | (33,871) |
Depreciation, depletion, and amortization | (38,040) | (42,945) | (26,072) |
Proved property impairment | (128,573) | 0 | (6,025) |
Results of operations from oil and gas producing activities (excluding corporate overhead and interest costs) | $ (129,364) | $ 53,792 | $ 28,307 |
Depletion per barrel of oil equivalent | $ / bbl | 17.44 | 20.39 | 16.59 |
Oil [Member] | |||
Proved developed and undeveloped reserves [Abstract] | |||
Balance | bbl | 29,390 | 20,915 | 17,342 |
Revisions of previous estimates | bbl | (9,301) | 2,697 | 797 |
Extensions and discoveries | bbl | 5,495 | 7,780 | 10,411 |
Sales of minerals in place | bbl | (13) | (608) | (6,785) |
Production | bbl | (1,440) | (1,394) | (850) |
Balance | bbl | 24,131 | 29,390 | 20,915 |
Proved Developed Reserves [Abstract] | |||
Proved Developed Reserves | bbl | 10,022 | 10,162 | 6,846 |
Proved Undeveloped Reserves [Abstract] | |||
Proved Undeveloped Reserves | bbl | 14,109 | 19,228 | 14,068 |
NGL [Member] | |||
Proved developed and undeveloped reserves [Abstract] | |||
Balance | bbl | 3,708 | 2,038 | 2,614 |
Revisions of previous estimates | bbl | (389) | 1,021 | 202 |
Extensions and discoveries | bbl | 3,475 | 868 | 335 |
Sales of minerals in place | bbl | 0 | (12) | (963) |
Production | bbl | (238) | (207) | (150) |
Balance | bbl | 6,556 | 3,708 | 2,038 |
Proved Developed Reserves [Abstract] | |||
Proved Developed Reserves | Mcf | 2 | 2 | 1 |
Proved Undeveloped Reserves [Abstract] | |||
Proved Undeveloped Reserves | Mcf | 5 | 2 | 1 |
Natural Gas [Member] | |||
Proved developed and undeveloped reserves [Abstract] | |||
Balance | Mcf | 55,853 | 48,109 | 61,184 |
Revisions of previous estimates | Mcf | (7,017) | 7,383 | (5,123) |
Extensions and discoveries | Mcf | 29,387 | 6,893 | 3,610 |
Sales of minerals in place | Mcf | (181) | (3,614) | (8,141) |
Production | Mcf | (3,015) | (2,918) | (3,421) |
Balance | Mcf | 75,027 | 55,853 | 48,109 |
Proved Developed Reserves [Abstract] | |||
Proved Developed Reserves | Mcf | 31,298 | 34,677 | 31,572 |
Proved Undeveloped Reserves [Abstract] | |||
Proved Undeveloped Reserves | Mcf | 43,729 | 21,176 | 16,537 |
Oil Equivalents [Member] | |||
Proved developed and undeveloped reserves [Abstract] | |||
Balance | Boe | 42,406,000 | 30,970,000 | 30,152,000 |
Revisions of previous estimates | Boe | (10,859,000) | 4,950,000 | 145,000 |
Extensions and discoveries | Boe | 13,867,000 | 9,797,000 | 11,348,000 |
Sales of minerals in place | Boe | (43,000) | (1,223,000) | (9,105,000) |
Production | Boe | (2,181,000) | (2,088,000) | (1,570,000) |
Balance | Boe | 43,190,000 | 42,406,000 | 30,970,000 |
Proved Developed Reserves [Abstract] | |||
Proved Developed Reserves | Boe | 17,194,000 | 17,948,000 | 13,572,000 |
Proved Undeveloped Reserves [Abstract] | |||
Proved Undeveloped Reserves | Boe | 25,996,000 | 24,459,000 | 17,397,000 |
Proved Developed and Undeveloped Reserve, Net (Energy), Period Increase (Decrease) | Boe | 6.6 | ||
NORTH DAKOTA | Oil Equivalents [Member] | |||
Proved Undeveloped Reserves [Abstract] | |||
Proved Developed and Undeveloped Reserve, Net (Energy), Period Increase (Decrease) | Boe | 1.4 | ||
Gas and Oil Area, Undeveloped, Additional Down-Spaced Locations | location | 8 | ||
Proved Undeveloped Reserves (Energy) | Boe | 6.5 | ||
North Dakota - Bakken [Member] | Oil Equivalents [Member] | |||
Proved Undeveloped Reserves [Abstract] | |||
Gas and Oil Area, Undeveloped, Additional Locations | location | 28 | ||
Proved Undeveloped Reserves (Energy) | Boe | 21 | ||
North Dakota - Three Forks [Member] | Oil Equivalents [Member] | |||
Proved Undeveloped Reserves [Abstract] | |||
Gas and Oil Area, Undeveloped, Additional Locations | location | 20 | ||
Texas - Montoya [Member] | Oil Equivalents [Member] | |||
Proved Undeveloped Reserves [Abstract] | |||
Gas and Oil Area, Undeveloped, Additional Locations | location | 6 | ||
Proved Undeveloped Reserves (Energy) | Boe | 6.5 |
Supplemental Oil and Gas Disc52
Supplemental Oil and Gas Disclosures (Unaudited), Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves (Details) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015USD ($)$ / bbl$ / MMBTU | Dec. 31, 2014USD ($)$ / bbl$ / MMBTU | Dec. 31, 2013USD ($)$ / bbl$ / MMBTU | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||||||
Period for standardize measure of discounted future net cash flows | 12 months | ||||||
Number of years of experience of Evaluator | 37 years | ||||||
Discount rate (in hundredths) | 10.00% | ||||||
Future net cash inflows after income taxes discounted at 10% annual discount rate to arrive at Standardized Measure [Abstract] | |||||||
Future cash inflows | $ 1,241,334 | $ 2,988,464 | $ 2,244,846 | ||||
Future production costs | (438,784) | (921,977) | (754,722) | ||||
Future development costs | (338,316) | (557,782) | (467,206) | ||||
Future income tax expense | 0 | (373,095) | (244,394) | ||||
Future net cash flows | 464,234 | 1,135,610 | 778,524 | ||||
Discount | (266,983) | (623,053) | (437,539) | ||||
Standardized Measure of discounted future net cash relating to proved reserves | $ 512,557 | $ 340,985 | $ 278,145 | $ 197,251 | $ 512,557 | $ 340,985 | |
Analysis of the changes in Standardized Measure [Roll Forward] | |||||||
Standardized Measure, beginning of year | 512,557 | 340,985 | 278,145 | ||||
Sales and transfers of oil and gas produced, net of production costs | 37,249 | 96,364 | 60,403 | ||||
Net change in prices and development and production costs from prior year | (488,160) | 150,504 | 169,969 | ||||
Extensions, discoveries, and improved recovery, less related costs | 63,341 | 147,275 | 156,456 | ||||
Sales of minerals in place | (197) | (15,042) | (125,533) | ||||
Revisions of previous quantity estimates | (49,602) | 74,390 | 2,930 | ||||
Change in timing and other | 20,419 | (82,653) | (62,861) | ||||
Change in future income tax expense | 124,886 | (40,636) | (45,532) | ||||
Accretion of discount | 51,256 | 34,098 | 27,814 | ||||
Standardized Measure, end of year | $ 197,251 | $ 512,557 | $ 340,985 | ||||
Oil and gas prices considered in standardized measure of discounted future net cash flows [Abstract] | |||||||
Oil (in dollars per Bbl) | $ / bbl | [1] | 50.12 | 95.28 | 97.33 | |||
Gas (in dollars per MMbtu) | $ / MMBTU | [2] | 2.63 | 4.35 | 3.67 | |||
Oil (in dollars per Bbl) | $ / bbl | [3] | 41.25 | 87.11 | 95.90 | |||
Gas (in dollars per MMBtu) | $ / MMBTU | [4] | 2.36 | 5.15 | 3.65 | |||
NGL's (in dollars per Bbl) | $ / bbl | [5] | 10.52 | 37.91 | 31.98 | |||
[1] | The quoted oil price for the year ended December 31 of each year, 2013, 2014 and 2015 is the 12-month unweighted average first-day-of-the-month West Texas Intermediate spot price for each month of 2013, 2014 and 2015. | ||||||
[2] | The quoted gas price for the year ended December 31, 2013, 2014 and 2015 is the 12-month unweighted average first-day-of-the-month Henry Hub spot price for each month of 2013, 2014 and 2015. | ||||||
[3] | The oil price is the realized price at the wellhead as of December 31 of each year after the appropriate differentials have been applied. | ||||||
[4] | The gas price is the realized price at the wellhead as of December 31 of each year after the appropriate differentials have been applied. | ||||||
[5] | The NGL price is the realized price as of December 31 of each year after the appropriate differentials have been applied. |