COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-19514 | |
Entity Registrant Name | Gulfport Energy Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-1521290 | |
Entity Address, Address Line One | 3001 Quail Springs Parkway | |
Entity Address, City or Town | Oklahoma City, | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73134 | |
City Area Code | 405 | |
Local Phone Number | 252-4600 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | GPOR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 159,872,688 | |
Amendment Flag | false | |
Entity Central Index Key | 0000874499 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,633 | $ 6,060 |
Accounts receivable—oil and natural gas sales | 74,099 | 121,210 |
Accounts receivable—joint interest and other | 42,547 | 47,975 |
Prepaid expenses and other current assets | 11,848 | 4,431 |
Short-term derivative instruments | 171,755 | 126,201 |
Total current assets | 301,882 | 305,877 |
Property and equipment: | ||
Oil and natural gas properties, full-cost accounting, $1,608,640 and $1,686,666 excluded from amortization in 2020 and 2019, respectively | 10,667,532 | 10,595,735 |
Other property and equipment | 96,882 | 96,719 |
Accumulated depletion, depreciation, amortization and impairment | (7,859,873) | (7,228,660) |
Property and equipment, net | 2,904,541 | 3,463,794 |
Other assets: | ||
Equity investments | 6,225 | 32,044 |
Long-term derivative instruments | 0 | 563 |
Deferred tax asset | 0 | 7,563 |
Operating lease assets | 10,186 | 14,168 |
Operating lease assets—related parties | 0 | 43,270 |
Other assets | 41,453 | 15,540 |
Total other assets | 57,864 | 113,148 |
Total assets | 3,264,287 | 3,882,819 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 437,453 | 415,218 |
Short-term derivative instruments | 67 | 303 |
Current portion of operating lease liabilities | 9,873 | 13,826 |
Current portion of operating lease liabilities—related parties | 0 | 21,220 |
Current maturities of long-term debt | 688 | 631 |
Total current liabilities | 448,081 | 451,198 |
Long-term derivative instruments | 70,829 | 53,135 |
Asset retirement obligation | 59,444 | 60,355 |
Uncertain tax position liability | 3,209 | 3,127 |
Non-current operating lease liabilities | 313 | 342 |
Non-current operating lease liabilities—related parties | 0 | 22,050 |
Long-term debt, net of current maturities | 1,898,362 | 1,978,020 |
Total liabilities | 2,480,238 | 2,568,227 |
Commitments and contingencies (Note 9) | ||
Preferred stock, $0.01 par value; 5,000,000 shares authorized (30,000 authorized as redeemable 12% cumulative preferred stock, Series A), and none issued and outstanding | 0 | 0 |
Stockholders’ equity: | ||
Common stock - $.01 par value, 200,000,000 shares authorized, 159,841,930 issued and outstanding at March 31, 2020 and 159,710,955 at December 31, 2019 | 1,598 | 1,597 |
Paid-in capital | 4,209,578 | 4,207,554 |
Accumulated other comprehensive loss | (61,863) | (46,833) |
Accumulated deficit | (3,365,264) | (2,847,726) |
Total stockholders’ equity | 784,049 | 1,314,592 |
Total liabilities and stockholders’ equity | $ 3,264,287 | $ 3,882,819 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (PARENTHETICAL) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Statement of Financial Position [Abstract] | ||
Capitalized costs of oil and natural gas properties excluded from amortization | $ 1,608,640 | $ 1,686,666 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, dividend rate | 12.00% | 12.00% |
Preferred stock, shares authorized (in shares) | 30,000 | 30,000 |
Preferred stock Series A, issued (in shares) | 0 | 0 |
Preferred stock Series A, outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares, issued (in shares) | 159,841,930 | 159,710,955 |
Common stock, shares, outstanding (in shares) | 159,841,930 | 159,710,955 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Net gain (loss) on natural gas, oil and NGL derivatives | $ 98,266,000 | $ (20,045,000) |
Total revenues | 246,877,000 | 320,578,000 |
Costs and expenses: | ||
Lease operating expenses | 15,986,000 | 19,807,000 |
Production taxes | 4,799,000 | 7,921,000 |
Midstream gathering and processing expenses | 57,896,000 | 70,282,000 |
Depreciation, depletion and amortization | 78,028,000 | 118,433,000 |
Impairment of oil and natural gas properties | 553,345,000 | 0 |
General and administrative expenses | 16,169,000 | 10,057,000 |
Accretion expense | 741,000 | 1,067,000 |
Total costs and expenses | 726,964,000 | 227,567,000 |
(LOSS) INCOME FROM OPERATIONS | (480,087,000) | 93,011,000 |
OTHER EXPENSE (INCOME): | ||
Interest expense | 32,990,000 | 35,621,000 |
Interest income | (152,000) | (152,000) |
Gain on debt extinguishment | (15,322,000) | 0 |
Loss (income) from equity method investments, net | 10,789,000 | (4,273,000) |
Other expense (income) | 1,856,000 | (427,000) |
Total other (income) expense | 30,161,000 | 30,769,000 |
LOSS BEFORE INCOME TAXES | (510,248,000) | 62,242,000 |
INCOME TAX EXPENSE | 7,290,000 | 0 |
NET LOSS | $ (517,538,000) | $ 62,242,000 |
NET (LOSS) INCOME PER COMMON SHARE: | ||
Basic (in usd per share) | $ (3.24) | $ 0.38 |
Diluted (in usd per share) | $ (3.24) | $ 0.38 |
Weighted average common shares outstanding - Basic (in shares) | 159,760,222 | 162,823,997 |
Weighted average common shares outstanding - Diluted (in shares) | 159,760,222 | 163,099,409 |
Natural gas sales | ||
Revenues: | ||
Revenue from contract with customer | $ 108,547,000 | $ 276,016,000 |
Oil and condensate sales | ||
Revenues: | ||
Revenue from contract with customer | 23,151,000 | 32,482,000 |
Natural gas liquid sales | ||
Revenues: | ||
Revenue from contract with customer | $ 16,913,000 | $ 32,125,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (517,538) | $ 62,242 |
Foreign currency translation adjustment | (15,030) | 3,801 |
Other comprehensive (loss) income | (15,030) | 3,801 |
Comprehensive (loss) income | $ (532,568) | $ 66,043 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2018 | 162,986,000 | ||||
Beginning balance at Dec. 31, 2018 | $ 3,327,768 | $ 1,630 | $ 4,227,532 | $ (56,026) | $ (845,368) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | 62,242 | 62,242 | |||
Other Comprehensive Income (Loss) | 3,801 | 3,801 | |||
Stock Compensation | 2,785 | 2,785 | |||
Shares Repurchased (in shares) | (3,619,000) | ||||
Shares Repurchased | (28,330) | $ (37) | (28,293) | ||
Issuance of Restricted Stock (in shares) | 55,000 | ||||
Issuance of Restricted Stock | 0 | $ 1 | (1) | ||
Ending balance (in shares) at Mar. 31, 2019 | 159,422,000 | ||||
Ending balance at Mar. 31, 2019 | $ 3,368,266 | $ 1,594 | 4,202,023 | (52,225) | (783,126) |
Beginning balance (in shares) at Dec. 31, 2019 | 159,710,955 | 159,711,000 | |||
Beginning balance at Dec. 31, 2019 | $ 1,314,592 | $ 1,597 | 4,207,554 | (46,833) | (2,847,726) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | (517,538) | (517,538) | |||
Other Comprehensive Income (Loss) | (15,030) | (15,030) | |||
Stock Compensation | 2,104 | 2,104 | |||
Shares Repurchased (in shares) | (80,000) | ||||
Shares Repurchased | (79) | $ (1) | (78) | ||
Issuance of Restricted Stock (in shares) | 211,000 | ||||
Issuance of Restricted Stock | $ 0 | $ 2 | (2) | ||
Ending balance (in shares) at Mar. 31, 2020 | 159,841,930 | 159,842,000 | |||
Ending balance at Mar. 31, 2020 | $ 784,049 | $ 1,598 | $ 4,209,578 | $ (61,863) | $ (3,365,264) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (517,538,000) | $ 62,242,000 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depletion, depreciation and amortization | 78,028,000 | 118,433,000 |
Impairment of oil and natural gas properties | 553,345,000 | 0 |
Loss (income) from equity method investments, net | 10,789,000 | (4,132,000) |
Gain on debt extinguishment | (15,322,000) | 0 |
Net (gain) loss on derivative instruments | (98,266,000) | 20,045,000 |
Cash receipts (payments) on settled derivative instruments | 70,733,000 | (24,836,000) |
Deferred income tax expense | 7,290,000 | 0 |
Other, net | 3,223,000 | 5,508,000 |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable—oil and natural gas sales | 47,111,000 | 65,204,000 |
Decrease (increase) in accounts receivable—joint interest and other | 6,001,000 | (2,083,000) |
(Decrease) increase in accounts payable and accrued liabilities | (7,637,000) | 1,366,000 |
Other, net | (6,919,000) | (1,982,000) |
Net cash provided by operating activities | 130,838,000 | 239,765,000 |
Cash flows from investing activities: | ||
Additions to oil and natural gas properties | (113,744,000) | (241,391,000) |
Proceeds from sale of oil and natural gas properties | 44,383,000 | 52,000 |
Additions to other property and equipment | (539,000) | (3,848,000) |
Proceeds from sale of other property and equipment | 91,000 | 56,000 |
Contributions to equity method investments | 0 | (432,000) |
Net cash used in investing activities | (69,809,000) | (245,563,000) |
Cash flows from financing activities: | ||
Principal payments on borrowings | (180,106,000) | (150,151,000) |
Borrowings on line of credit | 125,000,000 | 150,000,000 |
Repurchases of senior notes | (10,204,000) | 0 |
Payments for repurchases of stock under approved stock repurchase program | 0 | (28,212,000) |
Other, net | (146,000) | (140,000) |
Net cash used in financing activities | (65,456,000) | (28,503,000) |
Net decrease in cash, cash equivalents and restricted cash | (4,427,000) | (34,301,000) |
Cash, cash equivalents and restricted cash at beginning of period | 6,060,000 | 52,297,000 |
Cash, cash equivalents and restricted cash at end of period | 1,633,000 | 17,996,000 |
Supplemental disclosure of cash flow information: | ||
Interest payments | 14,034,000 | 15,266,000 |
Income tax receipts | 0 | (1,794,000) |
Supplemental disclosure of non-cash transactions: | ||
Capitalized stock-based compensation | 934,000 | 1,114,000 |
Asset retirement obligation capitalized | 381,000 | 1,952,000 |
Asset retirement obligation removed due to divestiture | (2,033,000) | 0 |
Interest capitalized | 187,000 | 766,000 |
Fair value of contingent consideration asset on date of divestiture | 23,090,000 | 0 |
Foreign currency translation (loss) gain on equity method investments | $ (15,030,000) | $ 3,801,000 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by Gulfport Energy Corporation (the “Company” or “Gulfport”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), and reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods reported in all material respects, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal, recurring nature. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles ("GAAP") have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The consolidated financial statements should be read in conjunction with the consolidated financial statements and the summary of significant accounting policies and notes included in the Company’s most recent annual report on Form 10-K. Results for the three months ended March 31, 2020 are not necessarily indicative of the results expected for the full year. COVID-19 I n March 2020, the World Health Organization classified the outbreak of COVID-19 as a pandemic and recommended containment and mitigation measures worldwide. The measures have led to worldwide shutdowns and halting of commercial and interpersonal activity, as governments around the world imposed regulations in efforts to control the spread of COVID-19 such as shelter-in-place orders, quarantines, executive orders and similar restrictions. While the Company continues to deliver energy resources to the United States, it remains focused on protecting the health and wellbeing of its employees and the communities in which it operates while assuring the continuity of its business operations. As a result of its business continuity measures, the Company has not experienced significant disruptions in executing its business operations in the first quarter of 2020. However, Gulfport is closely monitoring the impact of COVID-19 on all aspects of its business and the current commodity price environment and is unable to predict the impact it will have on its future financial position or operating results. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act as currently structured is not expected to have a material impact on the Company’s consolidated financial statements. Impact on Previously Reported Results During the third quarter of 2019, the Company identified that certain activities were misclassified between cash flows from operating activities and cash flows from investing activities. These activities had been included in accounts payable, accrued liabilities and other and presented as cash flows from operating activities while they should have been presented as additions to oil and natural gas properties in cash flows from investing activities. The Company corrected the previously presented statements of cash flows for these additions and in doing so, for the three months ended March 31, 2019 contained herein, the consolidated statements of cash flows and the condensed consolidating statements of cash flows were adjusted to increase net cash flows provided by operating activities by $54.7 million with a corresponding increase in net cash flows used in investing activities. The Company has evaluated the effect of the incorrect presentation, both qualitatively and quantitatively, and concluded that it did not have a material impact on any previously filed annual or quarterly consolidated financial statements. Recently Adopted Accounting Standards On January 1, 2020, the Company adopted ASU No. 2016-13 , Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectibility of the reported amount. The Company adopted the new standard using the prospective transition method, and it did not have a material impact on the Company's consolidated financial statements and related disclosures. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The major categories of property and equipment and related accumulated depletion, depreciation, amortization ("DD&A") and impairment as of March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 December 31, 2019 (In thousands) Oil and natural gas properties $ 10,667,532 $ 10,595,735 Accumulated DD&A and impairment (7,820,662 ) (7,191,957 ) Oil and natural gas properties, net 2,846,870 3,403,778 Other depreciable property and equipment 91,361 91,198 Land 5,521 5,521 Accumulated DD&A (39,211 ) (36,703 ) Other property and equipment, net 57,671 60,016 Property and equipment, net $ 2,904,541 $ 3,463,794 Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the Company's oil and natural gas properties. At March 31, 2020 , the net book value of the Company's oil and gas properties, less related deferred income taxes, was above the calculated ceiling as a result of reduced commodity prices for the period leading up to March 31, 2020 . As a result, the Company was required to record an impairment of its oil and natural gas properties in the amount of $553.3 million for the three months ended March 31, 2020 . No impairment was required for oil and natural gas properties for the three months ended March 31, 2019 . Based on prices for the last nine months and the short-term pricing outlook for the second quarter of 2020, the Company expects to recognize additional full cost impairments in the second quarter of 2020. The amount of any future impairments is difficult to predict as it depends on changes in commodity prices, production rates, proved reserves, evaluation of costs excluded from amortization, future development costs and production costs. Any future full cost impairments are not expected to have any impact to the Company's future cash flows or liquidity. General and administrative costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other costs associated with overseeing the exploration and development activities. All general and administrative costs not directly associated with exploration and development activities were charged to expense as they were incurred. Capitalized general and administrative costs were approximately $5.4 million and $7.7 million for the three months ended March 31, 2020 and 2019 , respectively. The average depletion rate per Mcfe, which is a function of capitalized costs, future development costs and the related underlying reserves in the periods presented, was $0.79 and $1.02 per Mcfe for the three months ended March 31, 2020 and 2019 , respectively. The following table summarizes the Company’s unevaluated properties excluded from amortization by area at March 31, 2020 : March 31, 2020 (In thousands) Utica $ 908,481 MidContinent 697,909 Other 2,250 $ 1,608,640 At December 31, 2019 , approximately $1.7 billion of unevaluated properties were not subject to amortization. The Company evaluates the costs excluded from its amortization calculation at least annually. Individually insignificant unevaluated properties are grouped for evaluation and periodically transferred to evaluated properties over a timeframe consistent with their expected development schedule. Asset Retirement Obligation A reconciliation of the Company’s asset retirement obligation for the three months ended March 31, 2020 and 2019 is as follows: March 31, 2020 March 31, 2019 (In thousands) Asset retirement obligation, beginning of period $ 60,355 $ 79,952 Liabilities incurred 381 969 Liabilities settled — (71 ) Liabilities removed due to divestitures (2,033 ) — Accretion expense 741 1,067 Revisions in estimated cash flows — 983 Asset retirement obligation as of end of period 59,444 82,900 |
DIVESTITURES
DIVESTITURES | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURES | DIVESTITURES Sale of Water Infrastructure Assets On January 2, 2020, the Company closed on the sale of its SCOOP water infrastructure assets to a third-party water service provider. The Company received $50.0 million in cash proceeds upon closing and has an opportunity to earn potential additional incentive payments over the next 15 years , subject to the Company's ability to meet certain thresholds which will be driven by, among other things, the Company's future development program and water production levels. The agreement contained no minimum volume commitments. The fair value of the contingent consideration as of the closing date was $23.1 million . The divested assets were included in the amortization base of the full cost pool and no |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY INVESTMENTS | EQUITY INVESTMENTS Investments accounted for by the equity method consist of the following as of March 31, 2020 and December 31, 2019 : Carrying value (Loss) income from equity method investments Approximate ownership % March 31, 2020 December 31, 2019 Three months ended March 31, 2020 2019 (In thousands) Investment in Grizzly Oil Sands ULC 24.9 % $ 6,186 $ 21,000 $ (143 ) $ (393 ) Investment in Mammoth Energy Services, Inc. 21.5 % — 11,005 (10,646 ) 4,526 Investment in Windsor Midstream LLC 22.5 % 39 39 — — Investment in Tatex Thailand II, LLC 23.5 % — — — 140 $ 6,225 $ 32,044 $ (10,789 ) $ 4,273 The tables below summarize financial information for the Company’s equity investments as of March 31, 2020 and December 31, 2019 . Summarized balance sheet information: March 31, 2020 December 31, 2019 (In thousands) Current assets $ 440,801 $ 421,326 Noncurrent assets $ 1,104,297 $ 1,260,075 Current liabilities $ 131,175 $ 132,569 Noncurrent liabilities $ 171,132 $ 163,241 Summarized results of operations: Three months ended March 31, 2020 2019 (In thousands) Gross revenue $ 97,383 $ 264,844 Net (loss) income $ (85,031 ) $ 24,756 Grizzly Oil Sands ULC The Company, through its wholly owned subsidiary Grizzly Holdings Inc. (“Grizzly Holdings”), owns an approximate 24.9% interest in Grizzly Oil Sands ULC (“Grizzly”), a Canadian unlimited liability company. The remaining interest in Grizzly is owned by Grizzly Oil Sands Inc. As of March 31, 2020 , Grizzly had approximately 830,000 acres under lease in the Athabasca, Peace River and Cold Lake oil sands regions of Alberta, Canada. The Company reviewed its investment in Grizzly for impairment at March 31, 2020 and 2019 and determined no impairment was required. The Company paid $0.4 million in cash calls during the three months ended March 31, 2019 prior to its election to cease funding further capital calls. Grizzly’s functional currency is the Canadian dollar. The Company’s investment in Grizzly was decreased by a $14.7 million foreign currency translation loss and increased by a $3.7 million foreign currency translation gain for the three months ended March 31, 2020 and 2019 , respectively. Mammoth Energy Services, Inc. At March 31, 2020 , the Company owned 9,829,548 shares, or approximately 21.5% , of the outstanding common stock of Mammoth Energy Services, Inc. ("Mammoth Energy"). The Company’s investment in Mammoth Energy was decreased by a $0.4 million foreign currency loss and increased by a $0.1 million foreign currency gain resulting from Mammoth Energy's foreign subsidiary for the three months ended March 31, 2020 and 2019 , respectively . The Company received no distributions from Mammoth Energy during the three months ended March 31, 2020 and distributions of $1.2 million during the three months ended March 31, 2019 as a result of $0.125 per share dividends in February 2019. The approximate fair value of the Company's investment in Mammoth Energy at March 31, 2020 was $7.4 million based on the quoted market price of Mammoth Energy's common stock. The Company's share of net loss of Mammoth for three months ended March 31, 2020 was in excess of the carrying value of its investment. As such, the Company's investment value was reduced to zero at March 31, 2020 . The loss (income) from equity method investments presented in the table above reflects any intercompany profit eliminations. Windsor Midstream LLC At March 31, 2020 , the Company held a 22.5% interest in Windsor Midstream LLC (“Midstream”), an entity controlled and managed by an unrelated third party. The Company received no distributions from Midstream during the three months ended March 31, 2020 . Tatex Thailand II, LLC The Company has an indirect ownership interest in Tatex Thailand II, LLC ("Tatex") and received no distributions and $0.1 million in distributions from Tatex during the three months ended March 31, 2020 and 2019 , respectively. Tatex previously held an 8.5% interest in APICO, LLC (“APICO”), an international oil and gas exploration company, before selling its interest in June 2019. APICO has a reserve base located in Southeast Asia through its ownership of concessions covering approximately 108,000 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following items as of March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 (In thousands) Revolving credit agreement (1) $ 65,000 $ 120,000 6.625% senior unsecured notes due 2023 329,467 329,467 6.000% senior unsecured notes due 2024 595,903 603,428 6.375% senior unsecured notes due 2025 521,360 529,525 6.375% senior unsecured notes due 2026 387,367 397,529 Net unamortized debt issuance costs (2) (22,395 ) (23,751 ) Construction loan 22,348 22,453 Less: current maturities of long term debt (688 ) (631 ) Debt reflected as long term $ 1,898,362 $ 1,978,020 (1) The Company has entered into a senior secured revolving credit facility, as amended (the "revolving credit facility"), with The Bank of Nova Scotia, as the lead arranger and administrative agent and other lenders. The credit agreement provides for a maximum facility of $1.5 billion and matures on December 13, 2021. On November 25, 2019, the borrowing base under the Company's revolving credit facility was reduced to $1.2 billion , and the Company's elected commitment remained at $1.0 billion . As of March 31, 2020 , $65.0 million was outstanding under the revolving credit facility and the total availability for future borrowings under this facility, after giving effect to an aggregate of $236.8 million letters of credit, was $698.2 million . The Company’s wholly owned subsidiaries have guaranteed the obligations of the Company under the revolving credit facility. At March 31, 2020 , amounts borrowed under the revolving credit facility bore interest at a weighted average rate of 2.45% . The Company was in compliance with its financial covenants under the revolving credit facility at March 31, 2020 . (2) Loan issuance costs related to the 6.625% Senior Notes due 2023 (the "2023 Notes"), the 6.000% Senior Notes due 2024 (the "2024 Notes"), the 6.375% Senior Notes due 2025 (the "2025 Notes") and the 6.375% Senior Notes due 2026 (the "2026 Notes") (collectively the “Notes”) have been presented as a reduction to the principal amount of the Notes. At March 31, 2020 , total unamortized debt issuance costs were $3.1 million for the 2023 Notes, $6.5 million for the 2024 Notes, $9.1 million for the 2025 Notes and $3.6 million for the 2026 Notes. In addition, loan commitment fee costs for the Company's construction loan agreement were $0.1 million at March 31, 2020 . The Company capitalized approximately $0.2 million and $0.8 million in interest expense to its unevaluated oil and natural gas properties during the three months ended March 31, 2020 and 2019 , respectively. Debt Repurchases The Company's Board of Directors has authorized $200 million of cash to be used to repurchase its senior notes in the open market at discounted values to par. During the three months ended March 31, 2020 , the Company used borrowings under its revolving credit facility to repurchase in the open market approximately $25.9 million aggregate principal amount of its outstanding Notes for $10.2 million . This included approximately $7.5 million principal amount of the 2024 Notes, $8.2 million principal amount of the 2025 Notes, and $10.2 million principal amount of the 2026 Notes. The Company recognized a $15.3 million gain on debt extinguishment, which included retirement of unamortized issuance costs and fees associated with the repurchased debt. This gain is included in gain on debt extinguishment in the accompanying consolidated statements of operations. Fair Value of Debt At March 31, 2020 , the carrying value of the outstanding debt represented by the Notes was approximately $1.8 billion . Based on the quoted market prices (Level 1), the fair value of the Notes was determined to be approximately $447.4 million at March 31, 2020 . |
CHANGES IN CAPITALIZATION
CHANGES IN CAPITALIZATION | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
CHANGES IN CAPITALIZATION | HANGES IN CAPITALIZATION Stock Repurchases In January 2019, the Company's Board of Directors approved a stock repurchase program to acquire a portion of the Company's outstanding common stock within a 24 -month period. The program was suspended in the fourth quarter of 2019, and the May 1, 2020 amendment to the Company's revolving credit facility prohibits further repurchases. For the three months ended March 31, 2019 , the Company repurchased 3.6 million shares for a cost of approximately $28.2 million under this repurchase program. Additionally, during the three months ended March 31, 2020 and 2019 , the Company repurchased 80,000 and 15,000 shares, respectively, for a cost of approximately $0.1 million in each period to satisfy tax withholding requirements incurred upon the vesting of restricted stock. All repurchased shares have been canceled and returned to the status of authorized but unissued shares. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company has granted restricted stock units to employees and directors pursuant to the 2019 Amended and Restated Incentive Stock Plan ("2019 Plan"), as discussed below. During the three months ended March 31, 2020 and 2019 , the Company’s stock-based compensation cost was $2.1 million and $2.8 million , respectively, of which the Company capitalized $0.9 million and $1.1 million , respectively, relating to its exploration and development efforts. Stock compensation costs, net of the amounts capitalized, are included in general and administrative expenses in the accompanying consolidated statements of operations. The following table summarizes restricted stock unit activity for the three months ended March 31, 2020 : Number of Unvested Restricted Stock Units Weighted Average Grant Date Fair Value Number of Unvested Performance Vesting Restricted Stock Units Weighted Average Grant Date Fair Value Unvested shares as of January 1, 2020 4,098,318 $ 4.73 1,783,660 $ 2.96 Granted 1,985,452 0.67 — — Vested (211,090 ) 8.65 — — Forfeited (344,112 ) 5.00 (225,484 ) 1.98 Unvested shares as of March 31, 2020 5,528,568 $ 3.17 1,558,176 $ 3.11 Restricted Stock Units Restricted stock units awarded under the 2019 Plan generally vest over a period of one year in the case of directors and three years in the case of employees and vesting is dependent upon the recipient meeting applicable service requirements. Stock-based compensation costs are recorded ratably over the service period. The grant date fair value of restricted stock units represents the closing market price of the Company's common stock on the date of grant. Unrecognized compensation expense as of March 31, 2020 related to restricted stock units was $12.9 million . The expense is expected to be recognized over a weighted average period of 1.96 years. Performance Vesting Restricted Stock Units The Company has awarded performance vesting units to certain of its executive officers under the 2019 Plan. The number of shares of common stock issued pursuant to the award will be based on relative total shareholder return ("RTSR"). RTSR is an incentive measure whereby participants will earn from 0% to 200% of the target award based on the Company’s RTSR ranking compared to the RTSR of the companies in the Company’s designated peer group at the end of the performance period. Awards will be earned and vested over a performance period measured from January 1, 2019 to December 31, 2021, subject to earlier termination of the performance period in the event of a change in control. Unrecognized compensation expense as of March 31, 2020 related to performance vesting restricted shares was $3.4 million . The expense is expected to be recognized over a weighted average period of 2.11 years. Cash Incentive Awards On March 16, 2020, the Board of Directors of the Company approved the Company's 2020 Incentive Plan (the "2020 Incentive Plan"). The 2020 Incentive Plan provides for incentive compensation opportunities ("Incentive Awards") for select employees of the Company that are tied to the achievement of one or more performance goals relating to certain financial and operational metrics over a period of time. The earning of an Incentive Award and payout opportunity is contingent upon meeting the Incentive Award's applicable threshold performance levels. If such threshold performance levels are satisfied, the payout amount varies for performance above or below the pre-established target performance levels. During the three months ended March 31, 2020 , the Company awarded Incentive Awards to certain of its executive officers under the 2020 Incentive Plan. The cash amount of each award ultimately received is based on the attainment of certain financial, operational and total shareholder return performance targets and is subject to the recipient's continuous employment. Each Incentive Award is subject to a Performance Period of January 1, 2020 to December 31, 2020, and different vesting periods apply to separate one-third portions of each Incentive Award, with a different tranche vesting each on December 31, 2020, 2021, and 2022. The Incentive Awards are considered liability awards as the ultimate amount of the award is based, at least in part, on the price of the Company's shares, and as such, are remeasured to fair value at the end of each reporting period. The fair value of the Incentive Awards at March 31, 2020 was $3.2 million , which also approximated the grant date fair value. Unrecognized compensation expense as of March 31, 2020 related to Incentive Awards was $3.1 million . The expense is expected to be recognized over a weighted average period of 1.77 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Reconciliations of the components of basic and diluted net income per common share are presented in the tables below: Three months ended March 31, 2020 2019 Loss Shares Per Share Income Shares Per Share (In thousands, except share data) Basic: Net (loss) income $ (517,538 ) 159,760,222 $ (3.24 ) $ 62,242 162,823,997 $ 0.38 Effect of dilutive securities: Stock awards — — — 275,412 Diluted: Net (loss) income $ (517,538 ) 159,760,222 $ (3.24 ) $ 62,242 163,099,409 $ 0.38 There were 1,552,423 shares of common stock that were considered anti-dilutive for the three months ended March 31, 2020 . There were no potential shares of common stock that were considered anti-dilutive for the three months ended March 31, 2019 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Future Firm Sales Commitments The Company has entered into various firm sales contracts to deliver and sell natural gas. The Company expects to fulfill its delivery commitments primarily with production from proved developed reserves. The Company's proved reserves have generally been sufficient to satisfy its delivery commitments during the three most recent years, and it expects such reserves will continue to be the primary means of fulfilling its future commitments. However, where the Company's proved reserves are not sufficient to satisfy its delivery commitments, it can and may use spot market purchases to satisfy the commitments. A summary of these commitments at March 31, 2020 are set forth in the table below: (MMBtu per day) Remaining 2020 316,000 2021 192,000 2022 70,000 2023 17,000 Total 595,000 Future Firm Transportation Commitments The Company has contractual commitments with pipeline carriers for future transportation of natural gas from the Company's production areas to downstream markets. Commitments related to future firm transportation agreements are not recorded as obligations in the accompanying consolidated balance sheets; however, the costs associated with these commitments are reflected in the Company's estimates of proved reserves and future net revenues. A summary of these commitments at March 31, 2020 are set forth in the table below: Total MMBtu (In thousands) Remaining 2020 395,625,000 $ 206,292 2021 531,075,000 285,789 2022 531,075,000 286,626 2023 515,867,000 282,945 2024 489,525,000 265,568 Thereafter 3,769,092,000 2,160,732 Total 6,232,259,000 $ 3,487,952 Other Commitments Effective October 1, 2014, the Company entered into a Sand Supply Agreement with Muskie Proppant LLC (“Muskie”), a subsidiary of Mammoth Energy and a related party. Pursuant to this agreement, as amended effective August 3, 2018, the Company has agreed to purchase annual and monthly amounts of proppant sand subject to exceptions specified in the agreement at agreed pricing plus agreed costs and expenses through 2021. Failure by either Muskie or the Company to deliver or accept the minimum monthly amount results in damages calculated per ton based on the difference between the monthly obligation amount and the amount actually delivered or accepted, as applicable. The Company incurred $1.9 million and $0.3 million in non-utilization fees under this agreement during the three months ended March 31, 2020 and 2019 , respectively. Future minimum commitments under this agreement at March 31, 2020 are: (In thousands) Remaining 2020 $ 5,625 2021 7,500 Total $ 13,125 Litigation and Regulatory Proceedings The Company is involved in a number of litigation and regulatory proceedings including those described below. Many of these proceedings are in early stages, and many of them seek or may seek damages and penalties, the amount of which is indeterminate. The Company's total accrued liabilities in respect of litigation and regulatory proceedings is determined on a case-by-case basis and represents an estimate of probable losses after considering, among other factors, the progress of each case or proceeding, its experience and the experience of others in similar cases or proceedings, and the opinions and views of legal counsel. Significant judgment is required in making these estimates and their final liabilities may ultimately be materially different. The Company, along with a number of other oil and gas companies, has been named as a defendant in two separate complaints, one filed by the State of Louisiana and the Parish of Cameron in the 38th Judicial District Court for the Parish of Cameron on February 9, 2016 and the other filed by the State of Louisiana and the District Attorney for the 15th Judicial District of the State of Louisiana in the 15th Judicial District Court for the Parish of Vermilion on July 29, 2016 (together, the "Complaints"). The Complaints allege that certain of the defendants’ operations violated the State and Local Coastal Resources Management Act of 1978, as amended, and the rules, regulations, orders and ordinances adopted thereunder (the "CZM Laws") by causing substantial damage to land and waterbodies located in the coastal zone of the relevant Parish. The plaintiffs seek damages and other appropriate relief under the CZM Laws, including the payment of costs necessary to clear, re-vegetate, detoxify and otherwise restore the affected coastal zone of the relevant Parish to its original condition, actual restoration of such coastal zone to its original condition, and the payment of reasonable attorney fees and legal expenses and interest. The United States District Court for the Western District of Louisiana issued orders remanding the cases to their respective state court, and the defendants have appealed the remand orders to the 5th Circuit Court of Appeals. In July 2019, Pigeon Land Company, Inc., a successor in interest to certain of the Company’s legacy Louisiana properties, filed an action against the Company and many other oil and gas companies in the 16th Judicial District Court for the Parish of Iberia in Louisiana. The suit alleges negligence, strict liability and various violations of Louisiana statutes relating to property damage in connection with the historic development of the Company’s Louisiana properties and seeks unspecified damages (including punitive damages), an injunction to return the affected property to its original condition, and the payment of reasonable attorney fees and legal expenses and interest. In September 2019, a stockholder of Mammoth Energy filed a derivative action on behalf of Mammoth Energy against members of Mammoth Energy’s board of directors, including a director designated by the Company, and its significant stockholders, including the Company, in the United States District Court for the Western District of Oklahoma. The complaint alleges, among other things, that the members of Mammoth Energy’s board of directors breached their fiduciary duties and violated the Securities Exchange Act of 1934, as amended, in connection with Mammoth Energy’s activities in Puerto Rico following Hurricane Maria. The complaint seeks unspecified damages, the payment of reasonable attorney fees and legal expenses and interest and to force Mammoth Energy and its board of directors to make specified corporate governance reforms. In October 2019, Kelsie Wagner, in her capacity as trustee of various trusts and on behalf of the trusts and other similarly situated royalty owners, filed an action against the Company in the District Court of Grady County, Oklahoma. The suit alleges that the Company underpaid royalty owners and seeks unspecified damages for violations of the Oklahoma Production Revenue Standards Act and fraud. In March 2020, Robert F. Woodley, individually and on behalf of all others similarly situated, filed a federal securities class action against the Company, David M. Wood, Keri Crowell and Quentin R. Hicks in the United States District Court for the Southern District of New York. The complaint alleges that the Company made materially false and misleading statements regarding the Company’s business and operations in violation of the federal securities laws and seeks unspecified damages, the payment of reasonable attorneys’ fees, expert fees and other costs, pre-judgment and post-judgment interest, and such other and further relief that may be deemed just and proper. As previously disclosed, in December 2019, the Company filed a lawsuit against Stingray Pressure Pumping LLC, a subsidiary of Mammoth Energy (“Stingray”), for breach of contract and to terminate the Master Services Agreement for pressure pumping services, effective as of October 1, 2014, as amended (the “Master Services Agreement”), between Stingray and the Company. In March 2020, Stingray filed a counterclaim against the Company in the Superior Court of the State of Delaware. The counterclaim alleges that the Company has breached the Master Services Agreement. The counterclaim seeks actual damages, which the complaint calculates to be approximately $6.7 million as of February 2020 (such amount to increase each month), the payment of reasonable attorney fees and legal expenses and pre- and post-judgment interest as allowed, and such other and further relief which it may be justly entitled. In April 2020, Bryon Lefort, individually and on behalf of similarly situated individuals, filed an action against the Company in the United States District Court for the Southern District of Ohio Eastern Division. The complaint alleges that the Company violated the Fair Labor Standards Act (“FLSA”), the Ohio Wage Act and the Ohio Prompt Pay Act by classifying the plaintiffs as independent contractors and paying them a daily rate with no overtime compensation for hours worked in excess of 40 hours per week. The complaint seeks to recover unpaid regular and overtime wages, liquidated damages in an amount equal to six percent of all unpaid overtime compensation, the payment of reasonable attorney fees and legal expenses and pre-judgment and post-judgment interest, and such other damages that may be owed to the workers. These cases are still in their early stages. As a result, the Company has not had the opportunity to evaluate the allegations made in the plaintiffs' complaints and intends to vigorously defend the suits. SEC Investigation The SEC has commenced an investigation with respect to certain actions by former Company management, including alleged improper personal use of Company assets, and potential violations by former management and the Company of the Sarbanes-Oxley Act of 2002 in connection with such actions. The Company has fully cooperated and intends to continue to cooperate fully with the SEC’s investigation. Although it is not possible to predict the ultimate resolution or financial liability with respect to this matter, the Company believes that the outcome of this matter will not have a material effect on the Company’s business, financial condition or results of operations. Business Operations The Company is involved in various lawsuits and disputes incidental to its business operations, including commercial disputes, personal injury claims, royalty claims, property damage claims and contract actions. Environmental Contingencies The nature of the oil and gas business carries with it certain environmental risks for Gulfport and its subsidiaries. They have implemented various policies, programs, procedures, training and audits to reduce and mitigate environmental risks. They conduct periodic reviews, on a company-wide basis, to assess changes in their environmental risk profile. Environmental reserves are established for environmental liabilities for which economic losses are probable and reasonably estimable. The Company manages its exposure to environmental liabilities in acquisitions by using an evaluation process that seeks to identify pre-existing contamination or compliance concerns and address the potential liability. Depending on the extent of an identified environmental concern, they may, among other things, exclude a property from the transaction, require the seller to remediate the property to their satisfaction in an acquisition or agree to assume liability for the remediation of the property. The Company received several Finding of Violation (“FOVs”) from the United States Environmental Protection Agency ("USEPA") alleging violations of the Clean Air Act at approximately 17 locations in Ohio. The first FOV for one site was dated December 11, 2013. Two subsequent FOVs incorporated and expanded the scope on January 4, 2017 and April 15, 2019. The Company has exchanged information with the USEPA and is engaged in discussions aimed at resolving the allegations. Resolution of the matter resulted in monetary sanctions of approximately $1.7 million . Other Matters Based on management’s current assessment, they are of the opinion that no pending or threatened lawsuit or dispute relating to its business operations is likely to have a material adverse effect on their future consolidated financial position, results of operations or cash flows. The final resolution of such matters could exceed amounts accrued, however, and actual results could differ materially from management’s estimates. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
DERIVATIVE INSTRUMENTS | ERIVATIVE INSTRUMENTS Natural Gas, Oil and Natural Gas Liquids Derivative Instruments The Company seeks to reduce its exposure to unfavorable changes in natural gas, oil and natural gas liquids ("NGL") prices, which are subject to significant and often volatile fluctuation, by entering into over-the-counter fixed price swaps, basis swaps and various types of option contracts. These contracts allow the Company to predict with greater certainty the effective natural gas, oil and NGL prices to be received for hedged production and benefit operating cash flows and earnings when market prices are less than the fixed prices provided in the contracts. However, the Company will not benefit from market prices that are higher than the fixed prices in the contracts for hedged production. Fixed price swaps are settled monthly based on differences between the fixed price specified in the contract and the referenced settlement price. When the referenced settlement price is less than the price specified in the contract, the Company receives an amount from the counterparty based on the price difference multiplied by the volume. Similarly, when the referenced settlement price exceeds the price specified in the contract, the Company pays the counterparty an amount based on the price difference multiplied by the volume. The prices contained in these fixed price swaps are based on the NYMEX Henry Hub for natural gas, the NYMEX West Texas Intermediate for oil and Mont Belvieu for propane, pentane and ethane. Below is a summary of the Company’s open fixed price swap positions as of March 31, 2020 . Location Daily Volume (MMBtu/day) Weighted Remaining 2020 NYMEX Henry Hub 432,000 $ 2.92 Location Daily Volume Weighted Remaining 2020 NYMEX WTI 6,000 $ 59.83 Location Daily Volume Weighted Remaining 2020 Mont Belvieu C3 500 $ 21.63 The Company sold call options in exchange for a premium, and used the associated premiums to enhance the fixed price for a portion of the fixed price natural gas swaps primarily for 2020 listed above. Each call option has an established ceiling price. When the referenced settlement price is above the price ceiling established by these call options, the Company pays its counterparty an amount equal to the difference between the referenced settlement price and the price ceiling multiplied by the hedged contract volumes. Location Daily Volume (MMBtu/day) Weighted Average Price 2022 NYMEX Henry Hub 628,000 $ 2.90 2023 NYMEX Henry Hub 628,000 $ 2.90 In addition, the Company entered into natural gas basis swap positions. As of March 31, 2020 , the Company had the following natural gas basis swap positions open: Gulfport Pays Gulfport Receives Daily Volume (MMBtu/day) Weighted Average Fixed Spread Remaining 2020 Transco Zone 4 NYMEX Plus Fixed Spread 60,000 $ (0.05 ) Remaining 2020 Fixed Spread ONEOK Minus NYMEX 10,000 $ (0.54 ) Contingent Consideration Arrangement The Company sold its non-core assets located in the West Cote Blanche Bay and Hackberry fields of Louisiana in July 2019. The sale price included the potential for the Company to receive contingent payments based on commodity prices exceeding specified thresholds over the two years following the closing date. This contingent consideration arrangement was determined to be an embedded derivative. See below for threshold and potential payment amounts. Period Threshold (1) Payment to be received (2) July 2020 - June 2021 Greater than or equal to $60.65 $ 150,000 Between $52.62 - $60.65 Calculated Value (3) Less than or equal to $52.62 $ — (1) Based on the "WTI NYMEX + Argus LLS Differential," as published by Argus Media. (2) Payment will be assessed monthly from July 2020 through June 2021. If threshold is met, payment shall be received within five business days after the end of each calendar month. (3) If average daily price, as defined in (1), is greater than $52.62 but less than $60.65, payment received will be $150,000 multiplied by a fraction, the numerator of which is the amount determined by subtracting $52.62 from such average daily price, and the denominator of which is $8.03. Balance Sheet Presentation The Company reports the fair value of derivative instruments on the consolidated balance sheets as derivative instruments under current assets, noncurrent assets, current liabilities and noncurrent liabilities on a gross basis. The Company determines the current and noncurrent classification based on the timing of expected future cash flows of individual trades. The following table presents the fair value of the Company’s derivative instruments on a gross basis at March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 (In thousands) Commodity derivative instruments $ 171,755 $ 125,383 Contingent consideration arrangement — 818 Total short-term derivative instruments - asset $ 171,755 $ 126,201 Contingent consideration arrangement — 563 Total long-term derivative instruments - asset $ — $ 563 Total short-term derivative instruments - liability $ 67 $ 303 Total long-term derivative instruments - liability $ 70,829 $ 53,135 Total net asset derivative position $ 100,859 $ 73,326 Gains and Losses The following table presents the gain and loss recognized in net gain (loss) on natural gas, oil and NGL derivatives in the accompanying consolidated statements of operations for the three months ended March 31, 2020 and 2019 . Net gain (loss) on derivative instruments Three months ended March 31, 2020 2019 (In thousands) Natural gas derivatives $ 45,853 $ (16,431 ) Oil derivatives 52,874 (454 ) NGL derivatives 920 (3,160 ) Contingent consideration arrangement (1,381 ) — Total $ 98,266 $ (20,045 ) Offsetting of Derivative Assets and Liabilities As noted above, the Company records the fair value of derivative instruments on a gross basis. The following table presents the gross amounts of recognized derivative assets and liabilities in the consolidated balance sheets and the amounts that are subject to offsetting under master netting arrangements with counterparties, all at fair value. As of March 31, 2020 Gross Assets (Liabilities) Gross Amounts Presented in the Subject to Master Net Consolidated Balance Sheets Netting Agreements Amount (In thousands) Derivative assets $ 171,755 $ (70,896 ) $ 100,859 Derivative liabilities $ (70,896 ) $ 70,896 $ — As of December 31, 2019 Gross Assets (Liabilities) Gross Amounts Presented in the Subject to Master Net Consolidated Balance Sheets Netting Agreements Amount (In thousands) Derivative assets $ 126,764 $ (53,438 ) $ 73,326 Derivative liabilities $ (53,438 ) $ 53,438 $ — Concentration of Credit Risk By using derivative instruments that are not traded on an exchange, the Company is exposed to the credit risk of its counterparties. Credit risk is the risk of loss from counterparties not performing under the terms of the derivative instrument. When the fair value of a derivative instrument is positive, the counterparty is expected to owe the Company, which creates credit risk. To minimize the credit risk in derivative instruments, it is the Company’s policy to enter into derivative contracts only with counterparties that are creditworthy financial institutions deemed by management as competent and competitive market makers. The Company’s derivative contracts are with multiple counterparties to lessen its exposure to any individual counterparty. Additionally, the Company uses master netting agreements to minimize credit risk exposure. The creditworthiness of the Company’s counterparties is subject to periodic review. None of the Company’s derivative instrument contracts contain credit-risk related contingent features. Other than as provided by the Company’s revolving credit facility, the Company is not required to provide credit support or collateral to any of its counterparties under its derivative instruments, nor are the counterparties required to provide credit support to the Company. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company records certain financial and non-financial assets and liabilities on the balance sheet at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. Market or observable inputs are the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. Fair value measurements are classified and disclosed in one of the following categories: Level 1 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 – Significant inputs to the valuation model are unobservable. Valuation techniques that maximize the use of observable inputs are favored. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy. Reclassifications of fair value between Level 1, Level 2 and Level 3 of the fair value hierarchy, if applicable, are made at the end of each quarter. The following tables summarize the Company’s financial and non-financial assets and liabilities by valuation level as of March 31, 2020 and December 31, 2019 : March 31, 2020 Level 1 Level 2 Level 3 (In thousands) Assets: Derivative Instruments $ — $ 171,755 $ — Liabilities: Derivative Instruments $ — $ 70,896 $ — December 31, 2019 Level 1 Level 2 Level 3 (In thousands) Assets: Derivative Instruments $ — $ 126,764 $ — Liabilities: Derivative Instruments $ — $ 53,438 $ — The Company estimates the fair value of all derivative instruments using industry-standard models that consider various assumptions, including current market and contractual prices for the underlying instruments, implied volatility, time value, nonperformance risk, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument and can be supported by observable data. As discussed in Note 3 , the water infrastructure sale included a contingent consideration arrangement. As of March 31, 2020 , the fair value of the contingent consideration was $23.0 million , of which $0.6 million is included in prepaid expenses and other assets and $22.4 million is included in other assets in the accompanying consolidated balance sheets. The fair value of the contingent consideration arrangement is calculated using discounted cash flow techniques and based on internal estimates of the Company's future development program and water production levels. Given the unobservable nature of the inputs, the fair value measurement of the contingent consideration arrangement is deemed to use Level 3 inputs. The Company has elected the fair value option for this contingent consideration arrangement and, therefore, will record changes in fair value in earnings in that period. The Company recognized a gain of $0.2 million on changes in fair value of the contingent consideration during the three months ended March 31, 2020 , which is included in other expense (income) in the accompanying consolidated statements of operations. Settlements under the contingent consideration arrangement totaled $0.3 million during the three months ended March 31, 2020 . The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and gas properties. Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs. See Note 2 for further discussion of the Company’s asset retirement obligations. Asset retirement obligations incurred during the three months ended March 31, 2020 were approximately $0.4 million . Fair value of financial instruments |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition The Company’s revenues are primarily derived from the sale of natural gas, oil and condensate and NGL. Sales of natural gas, oil and condensate and NGL are recognized in the period that the performance obligations are satisfied. The Company generally considers the delivery of each unit (MMBtu or Bbl) to be separately identifiable and represents a distinct performance obligation that is satisfied at the time control of the product is transferred to the customer. Revenue is measured based on consideration specified in the contract with the customer, and excludes any amounts collected on behalf of third parties. These contracts typically include variable consideration that is based on pricing tied to market indices and volumes delivered in the current month. As such, this market pricing may be constrained (i.e., not estimable) at the inception of the contract but will be recognized based on the applicable market pricing, which will be known upon transfer of the goods to the customer. The payment date is usually within 30 days of the end of the calendar month in which the commodity is delivered. Transaction Price Allocated to Remaining Performance Obligations A significant number of the Company's product sales are short-term in nature generally through evergreen contracts with contract terms of one year or less. These contracts typically automatically renew under the same provisions. For those contracts, the Company has utilized the practical expedient allowed in the new revenue accounting standard that exempts the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. For product sales that have a contract term greater than one year, the Company has utilized the practical expedient that exempts the Company from disclosure of the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these sales contracts, each unit of product generally represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. Currently, the Company's product sales that have a contractual term greater than one year have no long-term fixed consideration. Contract Balances Receivables from contracts with customers are recorded when the right to consideration becomes unconditional, generally when control of the product has been transferred to the customer. Receivables from contracts with customers were $74.1 million and $121.2 million as of March 31, 2020 and December 31, 2019 , respectively, and are reported in accounts receivable - oil and natural gas sales on the consolidated balance sheets. The Company currently has no assets or liabilities related to its revenue contracts, including no upfront or rights to deficiency payments. Prior-Period Performance Obligations The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for certain sales may be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production that was delivered to the purchaser and the price that will be received for the sale of the product. The differences between the estimates and the actual amounts for product sales is recorded in the month that payment is received from the purchaser. For the three months ended March 31, 2020 , revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES Nature of Leases The Company has operating leases associated with drilling rig commitments, field offices and other equipment with remaining lease terms with contractual durations in excess of one year. Short-term leases that have an initial term of one year or less are not capitalized. The Company has entered into contracts for drilling rigs with third parties to ensure rig availability in its key operating areas. The Company has concluded its drilling rig contracts are operating leases as the assets are identifiable and the evaluation that the Company has the right to control the identified assets. The Company's drilling rig commitments are typically structured with an initial term of one to two years and expire at various dates through 2020. These agreements typically include renewal options at the end of the initial term. Due to the nature of the Company's drilling schedules and potential volatility in commodity prices, the Company is unable to determine at commencement with reasonable certainty if the renewal options will be exercised; therefore, renewal options are not considered in the lease term for drilling contracts. The operating lease liabilities associated with these rig commitments are based on the minimum contractual obligations, primarily standby rates, and do not include variable amounts based on actual activity in a given period. The Company has also entered into several drilling rig commitments with an initial term less than one year. The costs for these short-term rig commitments are included in the short-term lease cost for the period as shown below. Pursuant to the full cost method of accounting, these costs are capitalized as part of oil and natural gas properties on the accompanying consolidated balance sheets. A portion of these costs are borne by other interest owners. Effective October 1, 2014, the Company entered into an Amended and Restated Master Services Agreement for pressure pumping services with Stingray Pressure Pumping LLC (“Stingray Pressure”), a subsidiary of Mammoth Energy and a related party. Pursuant to this agreement, as amended effective July 1, 2018, Stingray Pressure has agreed to provide hydraulic fracturing, stimulation and related completion and rework services to the Company through 2021 and the Company has agreed to pay Stingray Pressure a monthly service fee plus the associated costs of the services provided. As discussed further in Note 9 , the Company has terminated its Master Services Agreement for pressure pumping with Stingray Pressure. As a result, in the first quarter of 2020, Gulfport has removed the related right of use assets and lease liabilities associated with the terminated contract. The Company rents office space for its field locations and certain other equipment from third parties, which expire at various dates through 2024. These agreements are typically structured with non-cancelable terms of one to five years . The Company has determined these agreements represent operating leases with a lease term that equals the primary non-cancelable contract term. The Company has included any renewal options that it has determined are reasonably certain of exercise in the determination of the lease terms. Discount Rate As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company's incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Maturities of operating lease liabilities as of March 31, 2020 were as follows: (In thousands) Remaining 2020 $ 9,920 2021 129 2022 115 2023 90 2024 30 Total lease payments $ 10,284 Less: Imputed interest (98 ) Total $ 10,186 Lease cost for the three months ended March 31, 2020 and 2019 consisted of the following: Three months ended March 31, 2020 2019 (In thousands) Operating lease cost $ 4,082 $ 8,536 Operating lease cost—related party — 5,610 Variable lease cost 224 429 Variable lease cost—related party — 31,453 Short-term lease cost 2,810 — Total lease cost (1) $ 7,116 $ 46,028 (1) The majority of the Company's total lease cost was capitalized to the full cost pool, and the remainder was included in general and administrative expenses in the accompanying consolidated statements of operations. Supplemental cash flow information for the three months ended March 31, 2020 and 2019 related to leases was as follows: Three months ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities (In thousands) Operating cash flows from operating leases $ 36 $ 52 Investing cash flow from operating leases $ 3,997 $ 4,858 Investing cash flow from operating leases—related party $ 6,800 $ 6,545 The weighted-average remaining lease term as of March 31, 2020 was 0.76 years. The weighted-average discount rate used to determine the operating lease liability as of March 31, 2020 was 2.53% |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | ets. The Company’s ability to utilize NOL carryforwards and other tax attributes to reduce future federal taxable income is subject to potential limitations under Internal Revenue Code Section 382 (“Section 382”) and its related tax regulations. The utilization of these attributes may be limited if certain ownership changes by 5% stockholders (as defined in Treasury regulations pursuant to Section 382) and the effects of stock issuances by the Company during any three-year period result in a cumulative change of more than 50% in the beneficial ownership of Gulfport. The Company updates its Section 382 analysis to determine if an ownership change has occurred at each reporting period. If it is determined that an ownership change has occurred under these rules, the Company would generally be subject to an annual limitation on the use of pre-ownership change NOL carryforwards and certain other losses and/or credits. In addition, certain future transactions regarding the Company's equity, including the cumulative effects of small transactions as well as transactions beyond the Company’s control, could cause an ownership change and therefore a potential limitation on the annual utilization of its deferred tax assets. On April 30, 2020, the Company's Board of Directors approved the adoption of a tax benefits preservation plan that is intended to protect value by preserving the Company's ability to use its tax attributes, such as NOLs, to offset potential future income taxes for federal income tax purposes. See Note 16 for more information. |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 2023 Notes, the 2024 Notes, the 2025 Notes and the 2026 Notes are guaranteed on a senior unsecured basis by all existing consolidated subsidiaries that guarantee the Company’s secured revolving credit facility or certain other debt (the “Guarantors”). The Notes are not guaranteed by Grizzly Holdings or Mule Sky LLC ("Mule Sky") (the “Non-Guarantors”). The Guarantors are 100% owned by Gulfport (the “Parent”), and the guarantees are full, unconditional, joint and several. There are no significant restrictions on the ability of the Parent or the Guarantors to obtain funds from each other in the form of a dividend or loan. Effective June 1, 2019, the Parent contributed interests in certain oil and gas assets and related liabilities to certain of the Guarantors. The following condensed consolidating balance sheets, statements of operations, statements of comprehensive income and statements of cash flows are provided for the Parent, the Guarantors and the Non-Guarantors and include the consolidating adjustments and eliminations necessary to arrive at the information for the Company on a condensed consolidated basis. The information has been presented using the equity method of accounting for the Parent’s ownership of the Guarantors and the Non-Guarantors. CONDENSED CONSOLIDATING BALANCE SHEETS (Amounts in thousands) March 31, 2020 Parent Guarantors Non-Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 897 $ 541 $ 195 $ — $ 1,633 Accounts receivable - oil and natural gas sales 860 73,239 — — 74,099 Accounts receivable - joint interest and other 8,521 34,026 — — 42,547 Accounts receivable - intercompany 1,277,124 1,052,317 — (2,329,441 ) — Prepaid expenses and other current assets 11,452 320 76 — 11,848 Short-term derivative instruments 171,755 — — — 171,755 Total current assets 1,470,609 1,160,443 271 (2,329,441 ) 301,882 Property and equipment: Oil and natural gas properties, full-cost accounting 1,247,661 9,414,738 5,862 (729 ) 10,667,532 Other property and equipment 92,812 51 4,019 — 96,882 Accumulated depletion, depreciation, amortization and impairment (1,421,230 ) (6,436,959 ) (1,684 ) — (7,859,873 ) Property and equipment, net (80,757 ) 2,977,830 8,197 (729 ) 2,904,541 Other assets: Equity investments and investments in subsidiaries 2,486,108 6,332 6,186 (2,492,401 ) 6,225 Operating lease assets 10,186 — — — 10,186 Other assets 32,591 8,863 (1 ) — 41,453 Total other assets 2,528,885 15,195 6,185 (2,492,401 ) 57,864 Total assets $ 3,918,737 $ 4,153,468 $ 14,653 $ (4,822,571 ) $ 3,264,287 Liabilities and Stockholders ’ Equity Current liabilities: Accounts payable and accrued liabilities $ 63,863 $ 373,554 $ 36 $ — $ 437,453 Accounts payable - intercompany 1,087,484 1,237,368 4,589 (2,329,441 ) — Short-term derivative instruments 67 — — — 67 Current portion of operating lease liabilities 9,873 — — — 9,873 Current maturities of long-term debt 688 — — — 688 Total current liabilities 1,161,975 1,610,922 4,625 (2,329,441 ) 448,081 Long-term derivative instruments 70,829 — — — 70,829 Asset retirement obligation - long-term — 59,444 — — 59,444 Uncertain tax position liability 3,209 — — — 3,209 Non-current operating lease liabilities 313 — — — 313 Long-term debt, net of current maturities 1,898,362 — — — 1,898,362 Total liabilities 3,134,688 1,670,366 4,625 (2,329,441 ) 2,480,238 Stockholders’ equity: Common stock 1,598 — — — 1,598 Paid-in capital 4,209,578 4,171,409 267,558 (4,438,967 ) 4,209,578 Accumulated other comprehensive loss (61,863 ) — (59,434 ) 59,434 (61,863 ) Accumulated deficit (3,365,264 ) (1,688,307 ) (198,096 ) 1,886,403 (3,365,264 ) Total stockholders’ equity 784,049 2,483,102 10,028 (2,493,130 ) 784,049 Total liabilities and stockholders ’ equity $ 3,918,737 $ 4,153,468 $ 14,653 $ (4,822,571 ) $ 3,264,287 CONDENSED CONSOLIDATING BALANCE SHEETS (Amounts in thousands) December 31, 2019 Parent Guarantors Non-Guarantor Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 2,768 $ 3,097 $ 195 $ — $ 6,060 Accounts receivable - oil and natural gas sales 859 120,351 — — 121,210 Accounts receivable - joint interest and other 5,279 42,696 — — 47,975 Accounts receivable - intercompany 1,065,593 843,223 — (1,908,816 ) — Prepaid expenses and other current assets 4,047 308 76 — 4,431 Short-term derivative instruments 126,201 — — — 126,201 Total current assets 1,204,747 1,009,675 271 (1,908,816 ) 305,877 Property and equipment: Oil and natural gas properties, full-cost accounting, 1,314,933 9,273,681 7,850 (729 ) 10,595,735 Other property and equipment 92,650 50 4,019 — 96,719 Accumulated depletion, depreciation, amortization and impairment (1,418,888 ) (5,808,254 ) (1,518 ) — (7,228,660 ) Property and equipment, net (11,305 ) 3,465,477 10,351 (729 ) 3,463,794 Other assets: Equity investments and investments in subsidiaries 3,064,503 6,332 21,000 (3,059,791 ) 32,044 Long-term derivative instruments 563 — — — 563 Deferred tax asset 7,563 — — — 7,563 Operating lease assets 14,168 — — — 14,168 Operating lease assets - related parties 43,270 — — — 43,270 Other assets 10,026 5,514 — — 15,540 Total other assets 3,140,093 11,846 21,000 (3,059,791 ) 113,148 Total assets $ 4,333,535 $ 4,486,998 $ 31,622 $ (4,969,336 ) $ 3,882,819 Liabilities and Stockholders ’ Equity Current liabilities: Accounts payable and accrued liabilities $ 48,006 $ 367,088 $ 124 $ — $ 415,218 Accounts payable - intercompany 878,283 1,026,249 4,285 (1,908,817 ) — Short-term derivative instruments 303 — — — 303 Current portion of operating lease liabilities 13,826 — — — 13,826 Current portion of operating lease liabilities - related parties 21,220 — — — 21,220 Current maturities of long-term debt 631 — — — 631 Total current liabilities 962,269 1,393,337 4,409 (1,908,817 ) 451,198 Long-term derivative instruments 53,135 — — — 53,135 Asset retirement obligation - long-term — 58,322 2,033 — 60,355 Uncertain tax position liability 3,127 — — — 3,127 Non-current operating lease liabilities 342 — — — 342 Non-current operating lease liabilities - related parties 22,050 — — — 22,050 Long-term debt, net of current maturities 1,978,020 — — — 1,978,020 Total liabilities 3,018,943 1,451,659 6,442 (1,908,817 ) 2,568,227 Stockholders’ equity: Common stock 1,597 — — — 1,597 Paid-in capital 4,207,554 4,171,408 267,557 (4,438,965 ) 4,207,554 Accumulated other comprehensive loss (46,833 ) — (44,763 ) 44,763 (46,833 ) Accumulated deficit retained earnings (2,847,726 ) (1,136,069 ) (197,614 ) 1,333,683 (2,847,726 ) Total stockholders’ equity 1,314,592 3,035,339 25,180 (3,060,519 ) 1,314,592 Total liabilities and stockholders ’ equity $ 4,333,535 $ 4,486,998 $ 31,622 $ (4,969,336 ) $ 3,882,819 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Amounts in thousands) Three months ended March 31, 2020 Parent Guarantors Non-Guarantors Eliminations Consolidated Total revenues $ 98,268 $ 148,609 $ — $ — $ 246,877 Costs and expenses: Lease operating expenses — 15,986 — — 15,986 Production taxes — 4,799 — — 4,799 Midstream gathering and processing expenses — 57,896 — — 57,896 Depreciation, depletion and amortization 2,502 75,360 166 — 78,028 Impairment of oil and natural gas properties — 553,345 — — 553,345 General and administrative expenses 24,646 (8,650 ) 173 — 16,169 Accretion expense — 741 — — 741 27,148 699,477 339 — 726,964 INCOME (LOSS) FROM OPERATIONS 71,120 (550,868 ) (339 ) — (480,087 ) OTHER EXPENSE (INCOME): Interest expense 33,177 (187 ) — — 32,990 Interest income (59 ) (93 ) — — (152 ) Gain on debt extinguishment (15,322 ) — — — (15,322 ) Loss from equity method investments and investments in subsidiaries 563,366 — 143 (552,720 ) 10,789 Other expense 206 1,650 — — 1,856 581,368 1,370 143 (552,720 ) 30,161 LOSS BEFORE INCOME TAXES (510,248 ) (552,238 ) (482 ) 552,720 (510,248 ) INCOME TAX EXPENSE 7,290 — — — 7,290 NET LOSS $ (517,538 ) $ (552,238 ) $ (482 ) $ 552,720 $ (517,538 ) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Amounts in thousands) Three months ended March 31, 2019 Parent Guarantors Non-Guarantor Eliminations Consolidated Total revenues $ 186,246 $ 134,332 $ — $ — $ 320,578 Costs and expenses: Lease operating expenses 14,893 4,914 — — 19,807 Production taxes 3,261 4,660 — — 7,921 Midstream gathering and processing expenses 43,299 26,983 — — 70,282 Depreciation, depletion and amortization 118,432 1 — — 118,433 General and administrative expenses 10,731 (675 ) 1 — 10,057 Accretion expense 951 116 — — 1,067 191,567 35,999 1 — 227,567 (LOSS) INCOME FROM OPERATIONS (5,321 ) 98,333 (1 ) — 93,011 OTHER (INCOME) EXPENSE: Interest expense 35,925 (304 ) — — 35,621 Interest income (147 ) (5 ) — — (152 ) (Income) loss from equity method investments and investments in subsidiaries (102,914 ) — 393 98,248 (4,273 ) Other income (427 ) — — — (427 ) (67,563 ) (309 ) 393 98,248 30,769 INCOME (LOSS) BEFORE INCOME TAXES 62,242 98,642 (394 ) (98,248 ) 62,242 INCOME TAX BENEFIT — — — — — NET INCOME (LOSS) $ 62,242 $ 98,642 $ (394 ) $ (98,248 ) $ 62,242 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Amounts in thousands) Three months ended March 31, 2020 Parent Guarantors Non-Guarantors Eliminations Consolidated Net loss $ (517,538 ) $ (552,238 ) $ (482 ) $ 552,720 $ (517,538 ) Foreign currency translation adjustment (15,030 ) (360 ) (14,670 ) 15,030 (15,030 ) Other comprehensive loss (15,030 ) (360 ) (14,670 ) 15,030 (15,030 ) Comprehensive loss $ (532,568 ) $ (552,598 ) $ (15,152 ) $ 567,750 $ (532,568 ) Three months ended March 31, 2019 Parent Guarantors Non-Guarantor Eliminations Consolidated Net income (loss) $ 62,242 $ 98,642 $ (394 ) $ (98,248 ) $ 62,242 Foreign currency translation adjustment 3,801 94 3,707 (3,801 ) 3,801 Other comprehensive income 3,801 94 3,707 (3,801 ) 3,801 Comprehensive income (loss) $ 66,043 $ 98,736 $ 3,313 $ (102,049 ) $ 66,043 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Amounts in thousands) Three months ended March 31, 2020 Parent Guarantors Non-Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ 64,033 $ 66,805 $ (435 ) $ 435 $ 130,838 Net cash used in investing activities (448 ) (69,361 ) — — (69,809 ) Net cash (used in) provided by financing activities (65,456 ) — 435 (435 ) (65,456 ) Net decrease in cash, cash equivalents and restricted cash (1,871 ) (2,556 ) — — (4,427 ) Cash, cash equivalents and restricted cash at beginning of period 2,768 3,097 195 — 6,060 Cash, cash equivalents and restricted cash at end of period $ 897 $ 541 $ 195 $ — $ 1,633 Three months ended March 31, 2019 Parent Guarantors Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operating activities $ 210,928 $ 28,837 $ (1 ) $ 1 $ 239,765 Net cash used in investing activities (200,970 ) (44,593 ) (432 ) 432 (245,563 ) Net cash (used in) provided by financing activities (28,503 ) — 433 (433 ) (28,503 ) Net decrease in cash, cash equivalents and restricted cash (18,545 ) (15,756 ) — — (34,301 ) Cash, cash equivalents and restricted cash at beginning of period 25,585 26,711 1 — 52,297 Cash, cash equivalents and restricted cash at end of period $ 7,040 $ 10,955 $ 1 $ — $ 17,996 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Derivatives In April 2020, the Company early terminated its remaining oil fixed price swaps which represented approximately 6,000 Bbls of oil per day for the remainder of 2020. The early termination resulted in a cash settlement of approximately $40.5 million . Subsequent to this early termination, the Company entered into oil fixed price swap contracts for the second half of 2020 covering 2,000 Bbls per day of oil at a weighted average swap price of $35.60 per Bbl. In April and May 2020, the Company entered into natural gas fixed price swap contracts for the third quarter of 2020 covering approximately 20,000 MMBtu of natural gas per day at an average swap price of $2.50 per MMBtu and for the fourth quarter of 2020 covering approximately 170,000 MMBtu of natural gas per day at an average swap price of $2.64 per MMBtu. In April 2020, the Company entered into costless collars for 2021 covering approximately 250,000 MMBtu of natural gas per day at a weighted average floor price of $2.46 per MMBtu and a weighted average ceiling price of $2.81 p er MMBtu. The two-way price collars set a floor and ceiling price for the hedged production. If the applicable monthly price indices are outside of the ranges set by the floor and ceiling prices in the various collars, the Company will cash-settle the difference with the counterparty. Debt Repurchases In April 2020, the Company used borrowings under its revolving credit facility to repurchase in the open market approximately $47.6 million aggregate principal amount of its 2023 Notes, 2024 Notes, 2025 Notes, and 2026 Notes for $12.6 million . Borrowing Base Redetermination On May 1, 2020, the Company entered into a fifteenth amendment to the Amended and Restated Credit Agreement. As part of the amendment, the Company's borrowing base and elected commitment were reduced from $1.2 billion and $1.0 billion , respectively, to $700.0 million . Additionally, the amendment added a requirement to maintain a ratio of Net Secured Debt to EBITDAX not exceeding 2.00 to 1.00, deferred the requirement to maintain a ratio of Net Funded Debt to EBITDAX of 4.00 to 1.00 until September 31, 2021, and added a limitation on the repurchase of unsecured notes, among other amendments. The Company remained in compliance with its financial covenants under the revolving credit facility following the amendment. The Tax Benefits Preservation Plan On April 30, 2020, the board of directors of the Company adopted a tax benefits preservation plan in order to protect against a possible limitation on the Company’s ability to use its tax net operating losses and certain other tax benefits to reduce potential future U.S. federal income tax obligations. As noted in Note 14 , if the Company experiences an ownership change, as defined in Section 382, its ability to fully utilize the NOLs and certain other tax benefits would be substantially limited and the timing of the usage of the NOLs and such other benefits could be substantially delayed, which could significantly impair the value of those assets. The Tax Benefits Preservation Plan is intended to prevent against such an ownership change by deterring any person or group from acquiring beneficial ownership of 4.9% or more of the Company’s securities. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by Gulfport Energy Corporation (the “Company” or “Gulfport”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), and reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods reported in all material respects, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal, recurring nature. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles ("GAAP") have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The consolidated financial statements should be read in conjunction with the consolidated financial statements and the summary of significant accounting policies and notes included in the Company’s most recent annual report on Form 10-K. Results for the three months ended March 31, 2020 |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Standards On January 1, 2020, the Company adopted ASU No. 2016-13 , Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectibility of the reported amount. The Company adopted the new standard using the prospective transition method, and it did not have a material impact on the Company's consolidated financial statements and related disclosures. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | The major categories of property and equipment and related accumulated depletion, depreciation, amortization ("DD&A") and impairment as of March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 December 31, 2019 (In thousands) Oil and natural gas properties $ 10,667,532 $ 10,595,735 Accumulated DD&A and impairment (7,820,662 ) (7,191,957 ) Oil and natural gas properties, net 2,846,870 3,403,778 Other depreciable property and equipment 91,361 91,198 Land 5,521 5,521 Accumulated DD&A (39,211 ) (36,703 ) Other property and equipment, net 57,671 60,016 Property and equipment, net $ 2,904,541 $ 3,463,794 |
Schedule of non-producing properties excluded from amortization by area | The following table summarizes the Company’s unevaluated properties excluded from amortization by area at March 31, 2020 : March 31, 2020 (In thousands) Utica $ 908,481 MidContinent 697,909 Other 2,250 $ 1,608,640 |
Schedule of asset retirement obligation | A reconciliation of the Company’s asset retirement obligation for the three months ended March 31, 2020 and 2019 is as follows: March 31, 2020 March 31, 2019 (In thousands) Asset retirement obligation, beginning of period $ 60,355 $ 79,952 Liabilities incurred 381 969 Liabilities settled — (71 ) Liabilities removed due to divestitures (2,033 ) — Accretion expense 741 1,067 Revisions in estimated cash flows — 983 Asset retirement obligation as of end of period 59,444 82,900 |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | Investments accounted for by the equity method consist of the following as of March 31, 2020 and December 31, 2019 : Carrying value (Loss) income from equity method investments Approximate ownership % March 31, 2020 December 31, 2019 Three months ended March 31, 2020 2019 (In thousands) Investment in Grizzly Oil Sands ULC 24.9 % $ 6,186 $ 21,000 $ (143 ) $ (393 ) Investment in Mammoth Energy Services, Inc. 21.5 % — 11,005 (10,646 ) 4,526 Investment in Windsor Midstream LLC 22.5 % 39 39 — — Investment in Tatex Thailand II, LLC 23.5 % — — — 140 $ 6,225 $ 32,044 $ (10,789 ) $ 4,273 |
Schedule of equity investments - balance sheet | The tables below summarize financial information for the Company’s equity investments as of March 31, 2020 and December 31, 2019 . Summarized balance sheet information: March 31, 2020 December 31, 2019 (In thousands) Current assets $ 440,801 $ 421,326 Noncurrent assets $ 1,104,297 $ 1,260,075 Current liabilities $ 131,175 $ 132,569 Noncurrent liabilities $ 171,132 $ 163,241 |
Schedule of equity investments - income statement | Summarized results of operations: Three months ended March 31, 2020 2019 (In thousands) Gross revenue $ 97,383 $ 264,844 Net (loss) income $ (85,031 ) $ 24,756 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following items as of March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 (In thousands) Revolving credit agreement (1) $ 65,000 $ 120,000 6.625% senior unsecured notes due 2023 329,467 329,467 6.000% senior unsecured notes due 2024 595,903 603,428 6.375% senior unsecured notes due 2025 521,360 529,525 6.375% senior unsecured notes due 2026 387,367 397,529 Net unamortized debt issuance costs (2) (22,395 ) (23,751 ) Construction loan 22,348 22,453 Less: current maturities of long term debt (688 ) (631 ) Debt reflected as long term $ 1,898,362 $ 1,978,020 (1) The Company has entered into a senior secured revolving credit facility, as amended (the "revolving credit facility"), with The Bank of Nova Scotia, as the lead arranger and administrative agent and other lenders. The credit agreement provides for a maximum facility of $1.5 billion and matures on December 13, 2021. On November 25, 2019, the borrowing base under the Company's revolving credit facility was reduced to $1.2 billion , and the Company's elected commitment remained at $1.0 billion . As of March 31, 2020 , $65.0 million was outstanding under the revolving credit facility and the total availability for future borrowings under this facility, after giving effect to an aggregate of $236.8 million letters of credit, was $698.2 million . The Company’s wholly owned subsidiaries have guaranteed the obligations of the Company under the revolving credit facility. At March 31, 2020 , amounts borrowed under the revolving credit facility bore interest at a weighted average rate of 2.45% . The Company was in compliance with its financial covenants under the revolving credit facility at March 31, 2020 . (2) Loan issuance costs related to the 6.625% Senior Notes due 2023 (the "2023 Notes"), the 6.000% Senior Notes due 2024 (the "2024 Notes"), the 6.375% Senior Notes due 2025 (the "2025 Notes") and the 6.375% Senior Notes due 2026 (the "2026 Notes") (collectively the “Notes”) have been presented as a reduction to the principal amount of the Notes. At March 31, 2020 , total unamortized debt issuance costs were $3.1 million for the 2023 Notes, $6.5 million for the 2024 Notes, $9.1 million for the 2025 Notes and $3.6 million for the 2026 Notes. In addition, loan commitment fee costs for the Company's construction loan agreement were $0.1 million at March 31, 2020 . |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of restricted stock activity | The following table summarizes restricted stock unit activity for the three months ended March 31, 2020 : Number of Unvested Restricted Stock Units Weighted Average Grant Date Fair Value Number of Unvested Performance Vesting Restricted Stock Units Weighted Average Grant Date Fair Value Unvested shares as of January 1, 2020 4,098,318 $ 4.73 1,783,660 $ 2.96 Granted 1,985,452 0.67 — — Vested (211,090 ) 8.65 — — Forfeited (344,112 ) 5.00 (225,484 ) 1.98 Unvested shares as of March 31, 2020 5,528,568 $ 3.17 1,558,176 $ 3.11 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Reconciliations of the components of basic and diluted net income per common share are presented in the tables below: Three months ended March 31, 2020 2019 Loss Shares Per Share Income Shares Per Share (In thousands, except share data) Basic: Net (loss) income $ (517,538 ) 159,760,222 $ (3.24 ) $ 62,242 162,823,997 $ 0.38 Effect of dilutive securities: Stock awards — — — 275,412 Diluted: Net (loss) income $ (517,538 ) 159,760,222 $ (3.24 ) $ 62,242 163,099,409 $ 0.38 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of firm transportation commitments | A summary of these commitments at March 31, 2020 are set forth in the table below: (MMBtu per day) Remaining 2020 316,000 2021 192,000 2022 70,000 2023 17,000 Total 595,000 |
Schedule of other commitments | A summary of these commitments at March 31, 2020 are set forth in the table below: Total MMBtu (In thousands) Remaining 2020 395,625,000 $ 206,292 2021 531,075,000 285,789 2022 531,075,000 286,626 2023 515,867,000 282,945 2024 489,525,000 265,568 Thereafter 3,769,092,000 2,160,732 Total 6,232,259,000 $ 3,487,952 Future minimum commitments under this agreement at March 31, 2020 are: (In thousands) Remaining 2020 $ 5,625 2021 7,500 Total $ 13,125 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of open fixed price swap positions and natural gas basis swap positions | s of March 31, 2020 , the Company had the following natural gas basis swap positions open: Gulfport Pays Gulfport Receives Daily Volume (MMBtu/day) Weighted Average Fixed Spread Remaining 2020 Transco Zone 4 NYMEX Plus Fixed Spread 60,000 $ (0.05 ) Remaining 2020 Fixed Spread ONEOK Minus NYMEX 10,000 $ (0.54 ) March 31, 2020 . Location Daily Volume (MMBtu/day) Weighted Remaining 2020 NYMEX Henry Hub 432,000 $ 2.92 Location Daily Volume Weighted Remaining 2020 NYMEX WTI 6,000 $ 59.83 Location Daily Volume Weighted Remaining 2020 Mont Belvieu C3 500 $ 21.63 The Company sold call options in exchange for a premium, and used the associated premiums to enhance the fixed price for a portion of the fixed price natural gas swaps primarily for 2020 listed above. Each call option has an established ceiling price. When the referenced settlement price is above the price ceiling established by these call options, the Company pays its counterparty an amount equal to the difference between the referenced settlement price and the price ceiling multiplied by the hedged contract volumes. Location Daily Volume (MMBtu/day) Weighted Average Price 2022 NYMEX Henry Hub 628,000 $ 2.90 2023 NYMEX Henry Hub 628,000 $ 2.90 |
Schedule of purchase and sale agreement for sale of the company's non-core assets | See below for threshold and potential payment amounts. Period Threshold (1) Payment to be received (2) July 2020 - June 2021 Greater than or equal to $60.65 $ 150,000 Between $52.62 - $60.65 Calculated Value (3) Less than or equal to $52.62 $ — (1) Based on the "WTI NYMEX + Argus LLS Differential," as published by Argus Media. (2) Payment will be assessed monthly from July 2020 through June 2021. If threshold is met, payment shall be received within five business days after the end of each calendar month. (3) If average daily price, as defined in (1), is greater than $52.62 but less than $60.65, payment received will be $150,000 multiplied by a fraction, the numerator of which is the amount determined by subtracting $52.62 from such average daily price, and the denominator of which is $8.03. |
Schedule of derivative instruments in balance sheet | The following table presents the fair value of the Company’s derivative instruments on a gross basis at March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 (In thousands) Commodity derivative instruments $ 171,755 $ 125,383 Contingent consideration arrangement — 818 Total short-term derivative instruments - asset $ 171,755 $ 126,201 Contingent consideration arrangement — 563 Total long-term derivative instruments - asset $ — $ 563 Total short-term derivative instruments - liability $ 67 $ 303 Total long-term derivative instruments - liability $ 70,829 $ 53,135 Total net asset derivative position $ 100,859 $ 73,326 |
Schedule of net gain (loss) on derivatives | he following table presents the gain and loss recognized in net gain (loss) on natural gas, oil and NGL derivatives in the accompanying consolidated statements of operations for the three months ended March 31, 2020 and 2019 . Net gain (loss) on derivative instruments Three months ended March 31, 2020 2019 (In thousands) Natural gas derivatives $ 45,853 $ (16,431 ) Oil derivatives 52,874 (454 ) NGL derivatives 920 (3,160 ) Contingent consideration arrangement (1,381 ) — Total $ 98,266 $ (20,045 ) |
Schedule of recognized derivative assets | The following table presents the gross amounts of recognized derivative assets and liabilities in the consolidated balance sheets and the amounts that are subject to offsetting under master netting arrangements with counterparties, all at fair value. As of March 31, 2020 Gross Assets (Liabilities) Gross Amounts Presented in the Subject to Master Net Consolidated Balance Sheets Netting Agreements Amount (In thousands) Derivative assets $ 171,755 $ (70,896 ) $ 100,859 Derivative liabilities $ (70,896 ) $ 70,896 $ — As of December 31, 2019 Gross Assets (Liabilities) Gross Amounts Presented in the Subject to Master Net Consolidated Balance Sheets Netting Agreements Amount (In thousands) Derivative assets $ 126,764 $ (53,438 ) $ 73,326 Derivative liabilities $ (53,438 ) $ 53,438 $ — |
Schedule of recognized derivative liabilities | he following table presents the gross amounts of recognized derivative assets and liabilities in the consolidated balance sheets and the amounts that are subject to offsetting under master netting arrangements with counterparties, all at fair value. As of March 31, 2020 Gross Assets (Liabilities) Gross Amounts Presented in the Subject to Master Net Consolidated Balance Sheets Netting Agreements Amount (In thousands) Derivative assets $ 171,755 $ (70,896 ) $ 100,859 Derivative liabilities $ (70,896 ) $ 70,896 $ — As of December 31, 2019 Gross Assets (Liabilities) Gross Amounts Presented in the Subject to Master Net Consolidated Balance Sheets Netting Agreements Amount (In thousands) Derivative assets $ 126,764 $ (53,438 ) $ 73,326 Derivative liabilities $ (53,438 ) $ 53,438 $ — |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial and non-financial assets and liabilities by valuation level | The following tables summarize the Company’s financial and non-financial assets and liabilities by valuation level as of March 31, 2020 and December 31, 2019 : March 31, 2020 Level 1 Level 2 Level 3 (In thousands) Assets: Derivative Instruments $ — $ 171,755 $ — Liabilities: Derivative Instruments $ — $ 70,896 $ — December 31, 2019 Level 1 Level 2 Level 3 (In thousands) Assets: Derivative Instruments $ — $ 126,764 $ — Liabilities: Derivative Instruments $ — $ 53,438 $ — |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of operating lease liability | Maturities of operating lease liabilities as of March 31, 2020 were as follows: (In thousands) Remaining 2020 $ 9,920 2021 129 2022 115 2023 90 2024 30 Total lease payments $ 10,284 Less: Imputed interest (98 ) Total $ 10,186 |
Schedule of lease cost | Lease cost for the three months ended March 31, 2020 and 2019 consisted of the following: Three months ended March 31, 2020 2019 (In thousands) Operating lease cost $ 4,082 $ 8,536 Operating lease cost—related party — 5,610 Variable lease cost 224 429 Variable lease cost—related party — 31,453 Short-term lease cost 2,810 — Total lease cost (1) $ 7,116 $ 46,028 (1) The majority of the Company's total lease cost was capitalized to the full cost pool, and the remainder was included in general and administrative expenses in the accompanying consolidated statements of operations. Supplemental cash flow information for the three months ended March 31, 2020 and 2019 related to leases was as follows: Three months ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities (In thousands) Operating cash flows from operating leases $ 36 $ 52 Investing cash flow from operating leases $ 3,997 $ 4,858 Investing cash flow from operating leases—related party $ 6,800 $ 6,545 |
CONDENSED CONSOLIDATING FINAN_2
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED CONSOLIDATING BALANCE SHEETS | CONDENSED CONSOLIDATING BALANCE SHEETS (Amounts in thousands) March 31, 2020 Parent Guarantors Non-Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 897 $ 541 $ 195 $ — $ 1,633 Accounts receivable - oil and natural gas sales 860 73,239 — — 74,099 Accounts receivable - joint interest and other 8,521 34,026 — — 42,547 Accounts receivable - intercompany 1,277,124 1,052,317 — (2,329,441 ) — Prepaid expenses and other current assets 11,452 320 76 — 11,848 Short-term derivative instruments 171,755 — — — 171,755 Total current assets 1,470,609 1,160,443 271 (2,329,441 ) 301,882 Property and equipment: Oil and natural gas properties, full-cost accounting 1,247,661 9,414,738 5,862 (729 ) 10,667,532 Other property and equipment 92,812 51 4,019 — 96,882 Accumulated depletion, depreciation, amortization and impairment (1,421,230 ) (6,436,959 ) (1,684 ) — (7,859,873 ) Property and equipment, net (80,757 ) 2,977,830 8,197 (729 ) 2,904,541 Other assets: Equity investments and investments in subsidiaries 2,486,108 6,332 6,186 (2,492,401 ) 6,225 Operating lease assets 10,186 — — — 10,186 Other assets 32,591 8,863 (1 ) — 41,453 Total other assets 2,528,885 15,195 6,185 (2,492,401 ) 57,864 Total assets $ 3,918,737 $ 4,153,468 $ 14,653 $ (4,822,571 ) $ 3,264,287 Liabilities and Stockholders ’ Equity Current liabilities: Accounts payable and accrued liabilities $ 63,863 $ 373,554 $ 36 $ — $ 437,453 Accounts payable - intercompany 1,087,484 1,237,368 4,589 (2,329,441 ) — Short-term derivative instruments 67 — — — 67 Current portion of operating lease liabilities 9,873 — — — 9,873 Current maturities of long-term debt 688 — — — 688 Total current liabilities 1,161,975 1,610,922 4,625 (2,329,441 ) 448,081 Long-term derivative instruments 70,829 — — — 70,829 Asset retirement obligation - long-term — 59,444 — — 59,444 Uncertain tax position liability 3,209 — — — 3,209 Non-current operating lease liabilities 313 — — — 313 Long-term debt, net of current maturities 1,898,362 — — — 1,898,362 Total liabilities 3,134,688 1,670,366 4,625 (2,329,441 ) 2,480,238 Stockholders’ equity: Common stock 1,598 — — — 1,598 Paid-in capital 4,209,578 4,171,409 267,558 (4,438,967 ) 4,209,578 Accumulated other comprehensive loss (61,863 ) — (59,434 ) 59,434 (61,863 ) Accumulated deficit (3,365,264 ) (1,688,307 ) (198,096 ) 1,886,403 (3,365,264 ) Total stockholders’ equity 784,049 2,483,102 10,028 (2,493,130 ) 784,049 Total liabilities and stockholders ’ equity $ 3,918,737 $ 4,153,468 $ 14,653 $ (4,822,571 ) $ 3,264,287 CONDENSED CONSOLIDATING BALANCE SHEETS (Amounts in thousands) December 31, 2019 Parent Guarantors Non-Guarantor Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 2,768 $ 3,097 $ 195 $ — $ 6,060 Accounts receivable - oil and natural gas sales 859 120,351 — — 121,210 Accounts receivable - joint interest and other 5,279 42,696 — — 47,975 Accounts receivable - intercompany 1,065,593 843,223 — (1,908,816 ) — Prepaid expenses and other current assets 4,047 308 76 — 4,431 Short-term derivative instruments 126,201 — — — 126,201 Total current assets 1,204,747 1,009,675 271 (1,908,816 ) 305,877 Property and equipment: Oil and natural gas properties, full-cost accounting, 1,314,933 9,273,681 7,850 (729 ) 10,595,735 Other property and equipment 92,650 50 4,019 — 96,719 Accumulated depletion, depreciation, amortization and impairment (1,418,888 ) (5,808,254 ) (1,518 ) — (7,228,660 ) Property and equipment, net (11,305 ) 3,465,477 10,351 (729 ) 3,463,794 Other assets: Equity investments and investments in subsidiaries 3,064,503 6,332 21,000 (3,059,791 ) 32,044 Long-term derivative instruments 563 — — — 563 Deferred tax asset 7,563 — — — 7,563 Operating lease assets 14,168 — — — 14,168 Operating lease assets - related parties 43,270 — — — 43,270 Other assets 10,026 5,514 — — 15,540 Total other assets 3,140,093 11,846 21,000 (3,059,791 ) 113,148 Total assets $ 4,333,535 $ 4,486,998 $ 31,622 $ (4,969,336 ) $ 3,882,819 Liabilities and Stockholders ’ Equity Current liabilities: Accounts payable and accrued liabilities $ 48,006 $ 367,088 $ 124 $ — $ 415,218 Accounts payable - intercompany 878,283 1,026,249 4,285 (1,908,817 ) — Short-term derivative instruments 303 — — — 303 Current portion of operating lease liabilities 13,826 — — — 13,826 Current portion of operating lease liabilities - related parties 21,220 — — — 21,220 Current maturities of long-term debt 631 — — — 631 Total current liabilities 962,269 1,393,337 4,409 (1,908,817 ) 451,198 Long-term derivative instruments 53,135 — — — 53,135 Asset retirement obligation - long-term — 58,322 2,033 — 60,355 Uncertain tax position liability 3,127 — — — 3,127 Non-current operating lease liabilities 342 — — — 342 Non-current operating lease liabilities - related parties 22,050 — — — 22,050 Long-term debt, net of current maturities 1,978,020 — — — 1,978,020 Total liabilities 3,018,943 1,451,659 6,442 (1,908,817 ) 2,568,227 Stockholders’ equity: Common stock 1,597 — — — 1,597 Paid-in capital 4,207,554 4,171,408 267,557 (4,438,965 ) 4,207,554 Accumulated other comprehensive loss (46,833 ) — (44,763 ) 44,763 (46,833 ) Accumulated deficit retained earnings (2,847,726 ) (1,136,069 ) (197,614 ) 1,333,683 (2,847,726 ) Total stockholders’ equity 1,314,592 3,035,339 25,180 (3,060,519 ) 1,314,592 Total liabilities and stockholders ’ equity $ 4,333,535 $ 4,486,998 $ 31,622 $ (4,969,336 ) $ 3,882,819 |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Amounts in thousands) Three months ended March 31, 2020 Parent Guarantors Non-Guarantors Eliminations Consolidated Total revenues $ 98,268 $ 148,609 $ — $ — $ 246,877 Costs and expenses: Lease operating expenses — 15,986 — — 15,986 Production taxes — 4,799 — — 4,799 Midstream gathering and processing expenses — 57,896 — — 57,896 Depreciation, depletion and amortization 2,502 75,360 166 — 78,028 Impairment of oil and natural gas properties — 553,345 — — 553,345 General and administrative expenses 24,646 (8,650 ) 173 — 16,169 Accretion expense — 741 — — 741 27,148 699,477 339 — 726,964 INCOME (LOSS) FROM OPERATIONS 71,120 (550,868 ) (339 ) — (480,087 ) OTHER EXPENSE (INCOME): Interest expense 33,177 (187 ) — — 32,990 Interest income (59 ) (93 ) — — (152 ) Gain on debt extinguishment (15,322 ) — — — (15,322 ) Loss from equity method investments and investments in subsidiaries 563,366 — 143 (552,720 ) 10,789 Other expense 206 1,650 — — 1,856 581,368 1,370 143 (552,720 ) 30,161 LOSS BEFORE INCOME TAXES (510,248 ) (552,238 ) (482 ) 552,720 (510,248 ) INCOME TAX EXPENSE 7,290 — — — 7,290 NET LOSS $ (517,538 ) $ (552,238 ) $ (482 ) $ 552,720 $ (517,538 ) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Amounts in thousands) Three months ended March 31, 2019 Parent Guarantors Non-Guarantor Eliminations Consolidated Total revenues $ 186,246 $ 134,332 $ — $ — $ 320,578 Costs and expenses: Lease operating expenses 14,893 4,914 — — 19,807 Production taxes 3,261 4,660 — — 7,921 Midstream gathering and processing expenses 43,299 26,983 — — 70,282 Depreciation, depletion and amortization 118,432 1 — — 118,433 General and administrative expenses 10,731 (675 ) 1 — 10,057 Accretion expense 951 116 — — 1,067 191,567 35,999 1 — 227,567 (LOSS) INCOME FROM OPERATIONS (5,321 ) 98,333 (1 ) — 93,011 OTHER (INCOME) EXPENSE: Interest expense 35,925 (304 ) — — 35,621 Interest income (147 ) (5 ) — — (152 ) (Income) loss from equity method investments and investments in subsidiaries (102,914 ) — 393 98,248 (4,273 ) Other income (427 ) — — — (427 ) (67,563 ) (309 ) 393 98,248 30,769 INCOME (LOSS) BEFORE INCOME TAXES 62,242 98,642 (394 ) (98,248 ) 62,242 INCOME TAX BENEFIT — — — — — NET INCOME (LOSS) $ 62,242 $ 98,642 $ (394 ) $ (98,248 ) $ 62,242 |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Amounts in thousands) Three months ended March 31, 2020 Parent Guarantors Non-Guarantors Eliminations Consolidated Net loss $ (517,538 ) $ (552,238 ) $ (482 ) $ 552,720 $ (517,538 ) Foreign currency translation adjustment (15,030 ) (360 ) (14,670 ) 15,030 (15,030 ) Other comprehensive loss (15,030 ) (360 ) (14,670 ) 15,030 (15,030 ) Comprehensive loss $ (532,568 ) $ (552,598 ) $ (15,152 ) $ 567,750 $ (532,568 ) Three months ended March 31, 2019 Parent Guarantors Non-Guarantor Eliminations Consolidated Net income (loss) $ 62,242 $ 98,642 $ (394 ) $ (98,248 ) $ 62,242 Foreign currency translation adjustment 3,801 94 3,707 (3,801 ) 3,801 Other comprehensive income 3,801 94 3,707 (3,801 ) 3,801 Comprehensive income (loss) $ 66,043 $ 98,736 $ 3,313 $ (102,049 ) $ 66,043 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Amounts in thousands) Three months ended March 31, 2020 Parent Guarantors Non-Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ 64,033 $ 66,805 $ (435 ) $ 435 $ 130,838 Net cash used in investing activities (448 ) (69,361 ) — — (69,809 ) Net cash (used in) provided by financing activities (65,456 ) — 435 (435 ) (65,456 ) Net decrease in cash, cash equivalents and restricted cash (1,871 ) (2,556 ) — — (4,427 ) Cash, cash equivalents and restricted cash at beginning of period 2,768 3,097 195 — 6,060 Cash, cash equivalents and restricted cash at end of period $ 897 $ 541 $ 195 $ — $ 1,633 Three months ended March 31, 2019 Parent Guarantors Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operating activities $ 210,928 $ 28,837 $ (1 ) $ 1 $ 239,765 Net cash used in investing activities (200,970 ) (44,593 ) (432 ) 432 (245,563 ) Net cash (used in) provided by financing activities (28,503 ) — 433 (433 ) (28,503 ) Net decrease in cash, cash equivalents and restricted cash (18,545 ) (15,756 ) — — (34,301 ) Cash, cash equivalents and restricted cash at beginning of period 25,585 26,711 1 — 52,297 Cash, cash equivalents and restricted cash at end of period $ 7,040 $ 10,955 $ 1 $ — $ 17,996 |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by (used in) operating activities | $ 130,838 | $ 239,765 |
Adjusted to increase net cash flows provided by investing activities | $ (69,809) | (245,563) |
Misclassification between Operation and Financing Activities | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by (used in) operating activities | 54,700 | |
Adjusted to increase net cash flows provided by investing activities | $ 54,700 |
PROPERTY AND EQUIPMENT (Schedul
PROPERTY AND EQUIPMENT (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Oil and natural gas properties | $ 10,667,532 | $ 10,595,735 |
Accumulated DD&A and impairment | (7,820,662) | (7,191,957) |
Oil and natural gas properties, net | 2,846,870 | 3,403,778 |
Other depreciable property and equipment | 91,361 | 91,198 |
Land | 5,521 | 5,521 |
Accumulated DD&A | (39,211) | (36,703) |
Other property and equipment, net | 57,671 | 60,016 |
Property and equipment, net | $ 2,904,541 | $ 3,463,794 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)usd_per_mcf | Mar. 31, 2019USD ($)usd_per_mcf | Dec. 31, 2019USD ($) | |
Property, Plant and Equipment [Abstract] | |||
Impairment of oil and natural gas properties | $ 553,345,000 | $ 0 | |
Capitalized general and administrative costs | $ 5,400,000 | $ 7,700,000 | |
Depletion per Mcfe of gas equivalent (usd per Mcfe) | usd_per_mcf | 0.79 | 1.02 | |
Non-producing leasehold costs | $ 1,608,640,000 | $ 1,686,666,000 | |
Non-producing leases, extension term | 5 years |
PROPERTY AND EQUIPMENT (Summary
PROPERTY AND EQUIPMENT (Summary of Non-producing Properties Excluded from Amortization by Area) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Total non-producing properties not subject to amortization | $ 1,608,640 | $ 1,686,666 |
Utica | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Total non-producing properties not subject to amortization | 908,481 | |
MidContinent | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Total non-producing properties not subject to amortization | 697,909 | |
Other | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Total non-producing properties not subject to amortization | $ 2,250 |
PROPERTY AND EQUIPMENT (Sched_2
PROPERTY AND EQUIPMENT (Schedule of Asset Retirement Obligation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation, beginning of period | $ 60,355 | $ 79,952 |
Liabilities incurred | 381 | 969 |
Liabilities settled | 0 | (71) |
Liabilities removed due to divestitures | (2,033) | 0 |
Accretion expense | 741 | 1,067 |
Revisions in estimated cash flows | 0 | 983 |
Asset retirement obligation as of end of period | $ 59,444 | $ 82,900 |
DIVESTITURES (Details)
DIVESTITURES (Details) - USD ($) | Jan. 02, 2020 | Mar. 31, 2020 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Proceeds from sale of assets | $ 50,000,000 | |
Sale of asset, incentive payments, term | 15 years | |
Fair value of contingent consideration asset | $ 23,100,000 | $ 23,000,000 |
Gain (loss) on sale | $ 0 |
EQUITY INVESTMENTS (Investments
EQUITY INVESTMENTS (Investments Accounted for by the Equity Method) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity investments and investments in subsidiaries | $ 6,225,000 | $ 32,044,000 | |
Loss (income) from equity method investments, net | $ 10,789,000 | $ (4,273,000) | |
Investment in Grizzly Oil Sands ULC | |||
Schedule of Equity Method Investments [Line Items] | |||
Approximate ownership % | 24.90% | ||
Equity investments and investments in subsidiaries | $ 6,186,000 | 21,000,000 | |
Loss (income) from equity method investments, net | $ 143,000 | 393,000 | |
Investment in Mammoth Energy Services, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Approximate ownership % | 21.50% | ||
Equity investments and investments in subsidiaries | $ 0 | 11,005,000 | |
Loss (income) from equity method investments, net | $ 10,646,000 | (4,526,000) | |
Investment in Windsor Midstream LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Approximate ownership % | 22.50% | ||
Equity investments and investments in subsidiaries | $ 39,000 | 39,000 | |
Loss (income) from equity method investments, net | $ 0 | 0 | |
Investment in Tatex Thailand II, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Approximate ownership % | 23.50% | ||
Equity investments and investments in subsidiaries | $ 0 | $ 0 | |
Loss (income) from equity method investments, net | $ 0 | $ (140,000) |
EQUITY INVESTMENTS (Equity Inve
EQUITY INVESTMENTS (Equity Investments Balance Sheet Disclosure) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 440,801 | $ 421,326 |
Noncurrent assets | 1,104,297 | 1,260,075 |
Current liabilities | 131,175 | 132,569 |
Noncurrent liabilities | $ 171,132 | $ 163,241 |
EQUITY INVESTMENTS (Equity In_2
EQUITY INVESTMENTS (Equity Investment Income Statement Disclosure) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Gross revenue | $ 97,383 | $ 264,844 |
Net (loss) income | $ (85,031) | $ 24,756 |
EQUITY INVESTMENTS (Narrative)
EQUITY INVESTMENTS (Narrative) (Details) $ / shares in Units, a in Thousands | 3 Months Ended | |||
Mar. 31, 2020USD ($)a$ / sharesshares | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity investments | $ 6,225,000 | $ 32,044,000 | ||
Investment in Mammoth Energy Services, Inc. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership (in shares) | shares | 9,829,548 | |||
Share dividend (in usd per share) | $ / shares | $ 0.125 | |||
Approximate fair value, quoted market price | $ 7,400,000 | |||
Investment in Mammoth Energy Services, Inc. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest, percent | 21.50% | |||
Equity method investments, increase (decrease) due to foreign currency translation adjustment | $ (400,000) | $ 100,000 | ||
Distributions from equity method investments | 0 | 1,200,000 | ||
Equity investments | $ 0 | 11,005,000 | ||
Investment in Grizzly Oil Sands ULC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest, percent | 24.90% | |||
Equity method investment, impairment | $ 0 | 0 | ||
Equity method investment, amount of cash calls, based on proportionate ownership interest | 400,000 | |||
Equity method investments, increase (decrease) due to foreign currency translation adjustment | (14,700,000) | 3,700,000 | ||
Equity investments | $ 6,186,000 | 21,000,000 | ||
Windsor Midstream LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest, percent | 22.50% | |||
Distributions from equity method investments | $ 0 | |||
Equity investments | $ 39,000 | 39,000 | ||
Tatex Thailand II, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest, percent | 23.50% | |||
Distributions from equity method investments | $ 0 | $ 100,000 | ||
Equity investments | $ 0 | $ 0 | ||
Athabasca, Peace River And Cold Lake Oil Sands Regions | Investment in Grizzly Oil Sands ULC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gas and oil area, reserve (in acres) | a | 830 | |||
Phu Horm Field | Apico Llc | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gas and oil area, reserve (in acres) | a | 108 | |||
Apico Llc | Tatex Thailand II, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 8.50% |
LONG-TERM DEBT (Break-Down of L
LONG-TERM DEBT (Break-Down of Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Net unamortized debt issuance costs | $ (22,395) | $ (23,751) |
Less: current maturities of long term debt | (688) | (631) |
Long-term debt, net of current maturities | 1,898,362 | 1,978,020 |
Construction loan | ||
Debt Instrument [Line Items] | ||
Net unamortized debt issuance costs | (100) | |
6.625% senior unsecured notes due 2023 | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 329,467 | 329,467 |
Net unamortized debt issuance costs | $ (3,100) | |
Stated interest rate, percent | 6.625% | |
6.000% senior unsecured notes due 2024 | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 595,903 | 603,428 |
Net unamortized debt issuance costs | $ (6,500) | |
Stated interest rate, percent | 6.00% | |
6.375% senior unsecured notes due 2025 | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 521,360 | 529,525 |
Net unamortized debt issuance costs | $ (9,100) | |
Stated interest rate, percent | 6.375% | |
6.375% senior unsecured notes due 2026 | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 387,367 | 397,529 |
Net unamortized debt issuance costs | $ (3,600) | |
Stated interest rate, percent | 6.375% | |
Nova Scotia, Amegy, KeyBank | Revolving credit agreement | Revolving credit agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 65,000 | 120,000 |
InterBank | Letter of credit | Construction loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 22,348 | $ 22,453 |
LONG-TERM DEBT (Narrative) (Det
LONG-TERM DEBT (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Nov. 25, 2019 | |
Debt Instrument [Line Items] | ||||
Debt issuance costs, net | $ 22,395,000 | $ 23,751,000 | ||
Capitalized interest expense, undeveloped properties | 200,000 | $ 800,000 | ||
Aggregate principal amount | 200,000,000 | |||
Gain on debt extinguishment | 15,322,000 | $ 0 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | 25,900,000 | |||
Repurchase amount | 10,200,000 | |||
Gain on debt extinguishment | 15,300,000 | |||
Construction loan | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs, net | 100,000 | |||
6.000% senior unsecured notes due 2024 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 595,903,000 | 603,428,000 | ||
Stated interest rate, percent | 6.00% | |||
Debt issuance costs, net | $ 6,500,000 | |||
Aggregate principal amount | 7,500,000 | |||
6.625% senior unsecured notes due 2023 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 329,467,000 | 329,467,000 | ||
Stated interest rate, percent | 6.625% | |||
Debt issuance costs, net | $ 3,100,000 | |||
6.375% senior unsecured notes due 2025 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 521,360,000 | 529,525,000 | ||
Stated interest rate, percent | 6.375% | |||
Debt issuance costs, net | $ 9,100,000 | |||
Aggregate principal amount | 8,200,000 | |||
6.375% senior unsecured notes due 2026 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 387,367,000 | 397,529,000 | ||
Stated interest rate, percent | 6.375% | |||
Debt issuance costs, net | $ 3,600,000 | |||
Aggregate principal amount | $ 10,200,000 | |||
Nova Scotia, Amegy, KeyBank | Revolving credit agreement | ||||
Debt Instrument [Line Items] | ||||
Credit facility interest rate at the eurodollar rate | 2.45% | |||
Nova Scotia, Amegy, KeyBank | Revolving credit agreement | Revolving credit agreement | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500,000,000 | |||
Elected commitment amount | 1,000,000,000 | $ 1,200,000,000 | ||
Long-term debt | 65,000,000 | $ 120,000,000 | ||
Remaining borrowing capacity | 698,200,000 | |||
Nova Scotia, Amegy, KeyBank | Letter of credit | Revolving credit agreement | ||||
Debt Instrument [Line Items] | ||||
Credit facility outstanding | 236,800,000 | |||
Carry value | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Carrying value of notes | 1,800,000,000 | |||
Fair value | Level 1 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Carrying value of notes | $ 447,400,000 |
CHANGES IN CAPITALIZATION (Deta
CHANGES IN CAPITALIZATION (Details) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Class of Stock [Line Items] | |||
Stock repurchase program, period in force | 24 months | ||
Value of shares repurchased | $ 79 | $ 28,330 | |
Share purchased to satisfy tax withholding requirements (in shares) | 80 | 15 | |
Shares repurchased to satisfy tax withholding requirements | $ 100 | $ 100 | |
Common Stock | |||
Class of Stock [Line Items] | |||
Shares repurchased (in shares) | 80 | 3,619 | |
Value of shares repurchased | $ 1 | $ 37 | |
Share Repurchase Program | Common Stock | |||
Class of Stock [Line Items] | |||
Shares repurchased (in shares) | 3,600 | ||
Value of shares repurchased | $ 28,200 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation cost | $ 2.1 | $ 2.8 |
Capitalized stock-based compensation cost | $ 0.9 | $ 1.1 |
Percent of target based award, minimum | 0.00% | |
Percent of target based award, maximum | 200.00% | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 12.9 | |
Weighted average period of expense recognition period | 1 year 11 months 15 days | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 3.4 | |
Weighted average period of expense recognition period | 2 years 1 month 9 days | |
Incentive Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 3.1 | |
Weighted average period of expense recognition period | 1 year 9 months 7 days | |
Fair value of awards outstanding | $ 3.2 | |
Minimum | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Maximum | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years |
STOCK-BASED COMPENSATION (Restr
STOCK-BASED COMPENSATION (Restricted Stock Award and Unit Activity) (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Restricted Stock | |
Number of Unvested Restricted Shares | |
Unvested shares, beginning balance (in shares) | shares | 4,098,318 |
Granted (in shares) | shares | 1,985,452 |
Vested (in shares) | shares | (211,090) |
Forfeited (in shares) | shares | (344,112) |
Unvested shares, ending balance (in shares) | shares | 5,528,568 |
Weighted Average Grant Date Fair Value | |
Unvested shares, beginning balance (in dollars per share) | $ / shares | $ 4.73 |
Granted (in dollars per share) | $ / shares | 0.67 |
Vested (in dollars per share) | $ / shares | 8.65 |
Forfeited (in dollars per share) | $ / shares | 5 |
Unvested shares, ending balance (in dollars per share) | $ / shares | $ 3.17 |
Performance Shares | |
Number of Unvested Restricted Shares | |
Unvested shares, beginning balance (in shares) | shares | 1,783,660 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (225,484) |
Unvested shares, ending balance (in shares) | shares | 1,558,176 |
Weighted Average Grant Date Fair Value | |
Unvested shares, beginning balance (in dollars per share) | $ / shares | $ 2.96 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 1.98 |
Unvested shares, ending balance (in dollars per share) | $ / shares | $ 3.11 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic: | ||
Net (loss) income - basic | $ (517,538) | $ 62,242 |
Net income (loss) - basic (in shares) | 159,760,222 | 162,823,997 |
Net (loss) income - basic (in usd per share) | $ (3.24) | $ 0.38 |
Effect of dilutive securities: | ||
Stock awards | $ 0 | $ 0 |
Stock options and awards (in shares) | 0 | 275,412 |
Diluted: | ||
Net (loss) income - diluted | $ (517,538) | $ 62,242 |
Net (loss) income - diluted (in shares) | 159,760,222 | 163,099,409 |
Net (loss) income - diluted (in usd per share) | $ (3.24) | $ 0.38 |
Anti-dilutive shares | 1,552,423 | 0 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Future Commitments) (Details) MMBTU in Thousands, $ in Thousands | Mar. 31, 2020USD ($)MMBTU |
Commitments [Line Items] | |
Remaining 2020 (in mmbtu) | 316 |
2021 (in mmbtu) | 192 |
2022 (in mmbtu) | 70 |
2023 (in mmbtu) | 17 |
Total (in mmbtu) | 595 |
2021 | $ | $ 7,500 |
Total | $ | $ 13,125 |
Transportation commitment | |
Commitments [Line Items] | |
Remaining 2020 (in mmbtu) | 395,625 |
2021 (in mmbtu) | 531,075 |
2022 (in mmbtu) | 531,075 |
2023 (in mmbtu) | 515,867 |
2024 (in mmbtu) | 489,525 |
Thereafter (in mmbtu) | 3,769,092 |
Total (in mmbtu) | 6,232,259 |
Remaining 2020 | $ | $ 206,292 |
2021 | $ | 285,789 |
2022 | $ | 286,626 |
2023 | $ | 282,945 |
2024 | $ | 265,568 |
Thereafter | $ | 2,160,732 |
Total | $ | $ 3,487,952 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) $ in Millions | Apr. 15, 2019violation | Jan. 04, 2017violation | Jul. 29, 2016complaint | Feb. 09, 2016complaint | Dec. 11, 2013 | Apr. 30, 2020 | Feb. 27, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) |
Commitments [Line Items] | |||||||||
Loss contingency, damages sought | $ 6.7 | ||||||||
FOVs (in sites) | 1 | 1 | 1 | 17 | |||||
Loss contingency accrual | $ 1.7 | ||||||||
Judicial District Court for the Parish of Cameron | |||||||||
Commitments [Line Items] | |||||||||
Number of claims filed (in claims) | complaint | 1 | ||||||||
Judicial District Court for the Parish of Vermillion | |||||||||
Commitments [Line Items] | |||||||||
Number of claims filed (in claims) | complaint | 1 | ||||||||
Loss on long-term purchase commitment | Muskie Proppant LLC | |||||||||
Commitments [Line Items] | |||||||||
Non-utilization fees, accrued damages year to date | $ 1.9 | $ 0.3 | |||||||
Subsequent Event | |||||||||
Commitments [Line Items] | |||||||||
Loss contingency, damages sought, percentages of unpaid overtime compensation | 6.00% |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Future Minimum Commitments) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining 2020 | $ 5,625 |
2021 | 7,500 |
Total | $ 13,125 |
DERIVATIVE INSTRUMENTS (Schedul
DERIVATIVE INSTRUMENTS (Schedule of Derivative Instruments) (Details) | 3 Months Ended |
Mar. 31, 2020MMBTU$ / bbl$ / MMBTUbbl | |
NYMEX Henry Hub Swap - 2020 | |
Derivative [Line Items] | |
Daily Volume (MMBtu/day) | MMBTU | 432,000 |
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 2.92 |
NYMEX Henry Hub Swap - 2022 | Short | Call Option | |
Derivative [Line Items] | |
Daily Volume (MMBtu/day) | MMBTU | 628,000 |
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 2.90 |
NYMEX Henry Hub Swap - 2023 | Short | Call Option | |
Derivative [Line Items] | |
Daily Volume (MMBtu/day) | MMBTU | 628,000 |
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 2.90 |
NYMEX WTI Swap - 2020 | |
Derivative [Line Items] | |
Daily Volume (Bbls/day) | bbl | 6,000 |
Weighted average price (in usd per MMBtu or Bbl) | $ / bbl | 59.83 |
Mont Belvieu C3 Swap - 2020 | |
Derivative [Line Items] | |
Daily Volume (Bbls/day) | bbl | 500 |
Weighted average price (in usd per MMBtu or Bbl) | $ / bbl | 21.63 |
Transco Zone 4 - 2020 | Long | |
Derivative [Line Items] | |
Daily Volume (MMBtu/day) | MMBTU | 60,000 |
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 0.05 |
Fixed Spread - 2020 | Long | |
Derivative [Line Items] | |
Daily Volume (MMBtu/day) | MMBTU | 10,000 |
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 0.54 |
DERIVATIVE INSTRUMENTS (Conting
DERIVATIVE INSTRUMENTS (Contingent Consideration Arrangement) (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)$ / shares | |
Derivative [Line Items] | |
Derivative, credit risk related contingent features, payment to be received, denominator (in usd per share) | $ 8.03 |
Derivative Threshold, Greater Than or Equal to $60.65 | |
Derivative [Line Items] | |
Payment to be received | $ | $ 150,000 |
Derivative, credit risk related contingent features, commodity price threshold (in usd per share) | $ 60.65 |
Derivative Threshold, Between $52.62 and $60.65 | |
Derivative [Line Items] | |
Derivative, credit risk related contingent features, commodity price threshold (in usd per share) | 52.62 |
Derivative Threshold, Between $52.62 and $60.65 | Minimum | |
Derivative [Line Items] | |
Derivative, credit risk related contingent features, commodity price threshold (in usd per share) | 52.62 |
Derivative Threshold, Between $52.62 and $60.65 | Maximum | |
Derivative [Line Items] | |
Derivative, credit risk related contingent features, commodity price threshold (in usd per share) | $ 60.65 |
Derivative Threshold, Less Than or Equal to $52.62 | |
Derivative [Line Items] | |
Payment to be received | $ | $ 0 |
DERIVATIVE INSTRUMENTS (Derivat
DERIVATIVE INSTRUMENTS (Derivative Instruments in Financial Position) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Total short-term derivative instruments - asset | $ 171,755 | $ 126,201 |
Total long-term derivative instruments - asset | 0 | 563 |
Total short-term derivative instruments - liability | 67 | 303 |
Total long-term derivative instruments - liability | 70,829 | 53,135 |
Total net asset derivative position | 100,859 | 73,326 |
Commodity derivative instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total short-term derivative instruments - asset | 171,755 | 125,383 |
Contingent consideration arrangement | ||
Derivatives, Fair Value [Line Items] | ||
Total short-term derivative instruments - asset | 818 | |
Total long-term derivative instruments - asset | $ 0 | $ 563 |
DERIVATIVE INSTRUMENTS (Net (Lo
DERIVATIVE INSTRUMENTS (Net (Loss) Gain on Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Net gain (loss) on natural gas, oil and NGL derivatives | $ 98,266 | $ (20,045) |
Natural gas derivatives | ||
Derivative [Line Items] | ||
Net gain (loss) on natural gas, oil and NGL derivatives | 45,853 | (16,431) |
Oil derivatives | ||
Derivative [Line Items] | ||
Net gain (loss) on natural gas, oil and NGL derivatives | 52,874 | (454) |
NGL derivatives | ||
Derivative [Line Items] | ||
Net gain (loss) on natural gas, oil and NGL derivatives | 920 | (3,160) |
Contingent consideration arrangement | ||
Derivative [Line Items] | ||
Net gain (loss) on natural gas, oil and NGL derivatives | $ (1,381) | $ 0 |
DERIVATIVE INSTRUMENTS (Sched_2
DERIVATIVE INSTRUMENTS (Schedule of Offsetting) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross assets presented in the consolidated balance sheet | $ 171,755 | $ 126,764 |
Gross assets subject to mater netting agreement - assets | (70,896) | (53,438) |
Net amount - assets | 100,859 | 73,326 |
Gross liabilities presented in the consolidated balance sheet | (70,896) | (53,438) |
Gross amounts subject to master netting agreement - liabilities | 70,896 | 53,438 |
Net amount - liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jan. 02, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Liabilities: | ||||
Fair value of contingent consideration asset | $ 23,100 | $ 23,000 | ||
Contingent consideration, gain (loss) due to change in value | 200 | |||
Contingent consideration, settlements | 300 | |||
Asset retirement obligation capitalized | 381 | $ 969 | ||
Level 1 | ||||
Assets: | ||||
Derivative Instruments | 0 | $ 0 | ||
Liabilities: | ||||
Derivative Instruments | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Derivative Instruments | 171,755 | 126,764 | ||
Liabilities: | ||||
Derivative Instruments | 70,896 | 53,438 | ||
Level 3 | ||||
Assets: | ||||
Derivative Instruments | 0 | 0 | ||
Liabilities: | ||||
Derivative Instruments | 0 | $ 0 | ||
Prepaid Expenses and Other Current Assets | ||||
Liabilities: | ||||
Fair value of contingent consideration asset | 600 | |||
Other Noncurrent Assets | ||||
Liabilities: | ||||
Fair value of contingent consideration asset | $ 22,400 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Performance obligation period | However, settlement statements for certain sales may be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production that was delivered to the purchaser and the price that will be received for the sale of the product. | |
Receivables from contracts with customers | $ 74.1 | $ 121.2 |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Performance obligation period | P30D |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | Mar. 31, 2020 |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 9 months 3 days |
Weighted-average discount rate - operating leases | 2.53% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 year |
Minimum | Drilling Rig | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 5 years |
Maximum | Drilling Rig | |
Lessee, Lease, Description [Line Items] | |
Lease term | 2 years |
LEASES (Maturities of Lease Lia
LEASES (Maturities of Lease Liabilities) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Remaining 2020 | $ 9,920 |
2021 | 129 |
2022 | 115 |
2023 | 90 |
2024 | 30 |
Total lease payments | 10,284 |
Less: Imputed interest | (98) |
Lease liability | $ 10,186 |
LEASES (Lease Cost) (Details)
LEASES (Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 4,082 | $ 8,536 |
Operating lease cost—related party | 0 | 5,610 |
Variable lease cost | 224 | 429 |
Variable lease cost—related party | 0 | 31,453 |
Short-term lease cost | 2,810 | 0 |
Total lease cost | $ 7,116 | $ 46,028 |
LEASES (Other Information) (Det
LEASES (Other Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 36 | $ 52 |
Investing cash flow from operating leases | 3,997 | 4,858 |
Investing cash flow from operating leases—related party | $ 6,800 | $ 6,545 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Effective tax rate | (1.40%) |
Tax expense | $ 7.3 |
Testing period | 3 years |
CONDENSED CONSOLIDATING FINAN_3
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 1,633 | $ 6,060 | ||
Accounts receivable - oil and natural gas sales | 74,099 | 121,210 | ||
Accounts receivable - joint interest and other | 42,547 | 47,975 | ||
Accounts receivable - intercompany | 0 | 0 | ||
Prepaid expenses and other current assets | 11,848 | 4,431 | ||
Short-term derivative instruments | 171,755 | 126,201 | ||
Total current assets | 301,882 | 305,877 | ||
Property and equipment: | ||||
Oil and natural gas properties | 10,667,532 | 10,595,735 | ||
Other property and equipment | 96,882 | 96,719 | ||
Accumulated depletion, depreciation, amortization and impairment | (7,859,873) | (7,228,660) | ||
Property and equipment, net | 2,904,541 | 3,463,794 | ||
Other assets: | ||||
Equity investments and investments in subsidiaries | 6,225 | 32,044 | ||
Long-term derivative instruments | 0 | 563 | ||
Deferred tax asset | 0 | 7,563 | ||
Operating lease assets | 10,186 | 14,168 | ||
Operating lease assets—related parties | 0 | 43,270 | ||
Other assets | 41,453 | 15,540 | ||
Total other assets | 57,864 | 113,148 | ||
Total assets | 3,264,287 | 3,882,819 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 437,453 | 415,218 | ||
Accounts payable - intercompany | 0 | 0 | ||
Short-term derivative instruments | 67 | 303 | ||
Current portion of operating lease liabilities | 9,873 | 13,826 | ||
Current portion of operating lease liabilities—related parties | 0 | 21,220 | ||
Current maturities of long-term debt | 688 | 631 | ||
Total current liabilities | 448,081 | 451,198 | ||
Long-term derivative instruments | 70,829 | 53,135 | ||
Asset retirement obligation | 59,444 | 60,355 | ||
Uncertain tax position liability | 3,209 | 3,127 | ||
Non-current operating lease liabilities | 313 | 342 | ||
Non-current operating lease liabilities—related parties | 0 | 22,050 | ||
Long-term debt, net of current maturities | 1,898,362 | 1,978,020 | ||
Total liabilities | 2,480,238 | 2,568,227 | ||
Stockholders’ equity: | ||||
Common stock | 1,598 | 1,597 | ||
Paid-in capital | 4,209,578 | 4,207,554 | ||
Accumulated other comprehensive loss | (61,863) | (46,833) | ||
Accumulated deficit | (3,365,264) | (2,847,726) | ||
Total stockholders’ equity | 784,049 | 1,314,592 | $ 3,368,266 | $ 3,327,768 |
Total liabilities and stockholders’ equity | 3,264,287 | 3,882,819 | ||
Reportable legal entities | Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 897 | 2,768 | ||
Accounts receivable - oil and natural gas sales | 860 | 859 | ||
Accounts receivable - joint interest and other | 8,521 | 5,279 | ||
Accounts receivable - intercompany | 1,277,124 | 1,065,593 | ||
Prepaid expenses and other current assets | 11,452 | 4,047 | ||
Short-term derivative instruments | 171,755 | 126,201 | ||
Total current assets | 1,470,609 | 1,204,747 | ||
Property and equipment: | ||||
Oil and natural gas properties | 1,247,661 | 1,314,933 | ||
Other property and equipment | 92,812 | 92,650 | ||
Accumulated depletion, depreciation, amortization and impairment | (1,421,230) | (1,418,888) | ||
Property and equipment, net | (80,757) | (11,305) | ||
Other assets: | ||||
Equity investments and investments in subsidiaries | 2,486,108 | 3,064,503 | ||
Long-term derivative instruments | 563 | |||
Deferred tax asset | 7,563 | |||
Operating lease assets | 10,186 | 14,168 | ||
Operating lease assets—related parties | 43,270 | |||
Other assets | 32,591 | 10,026 | ||
Total other assets | 2,528,885 | 3,140,093 | ||
Total assets | 3,918,737 | 4,333,535 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 63,863 | 48,006 | ||
Accounts payable - intercompany | 1,087,484 | 878,283 | ||
Short-term derivative instruments | 67 | 303 | ||
Current portion of operating lease liabilities | 9,873 | 13,826 | ||
Current portion of operating lease liabilities—related parties | 21,220 | |||
Current maturities of long-term debt | 688 | 631 | ||
Total current liabilities | 1,161,975 | 962,269 | ||
Long-term derivative instruments | 70,829 | 53,135 | ||
Asset retirement obligation | 0 | 0 | ||
Uncertain tax position liability | 3,209 | 3,127 | ||
Non-current operating lease liabilities | 313 | 342 | ||
Non-current operating lease liabilities—related parties | 22,050 | |||
Long-term debt, net of current maturities | 1,898,362 | 1,978,020 | ||
Total liabilities | 3,134,688 | 3,018,943 | ||
Stockholders’ equity: | ||||
Common stock | 1,598 | 1,597 | ||
Paid-in capital | 4,209,578 | 4,207,554 | ||
Accumulated other comprehensive loss | (61,863) | (46,833) | ||
Accumulated deficit | (3,365,264) | (2,847,726) | ||
Total stockholders’ equity | 784,049 | 1,314,592 | ||
Total liabilities and stockholders’ equity | 3,918,737 | 4,333,535 | ||
Reportable legal entities | Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 541 | 3,097 | ||
Accounts receivable - oil and natural gas sales | 73,239 | 120,351 | ||
Accounts receivable - joint interest and other | 34,026 | 42,696 | ||
Accounts receivable - intercompany | 1,052,317 | 843,223 | ||
Prepaid expenses and other current assets | 320 | 308 | ||
Short-term derivative instruments | 0 | 0 | ||
Total current assets | 1,160,443 | 1,009,675 | ||
Property and equipment: | ||||
Oil and natural gas properties | 9,414,738 | 9,273,681 | ||
Other property and equipment | 51 | 50 | ||
Accumulated depletion, depreciation, amortization and impairment | (6,436,959) | (5,808,254) | ||
Property and equipment, net | 2,977,830 | 3,465,477 | ||
Other assets: | ||||
Equity investments and investments in subsidiaries | 6,332 | 6,332 | ||
Long-term derivative instruments | 0 | |||
Deferred tax asset | 0 | |||
Operating lease assets | 0 | 0 | ||
Operating lease assets—related parties | 0 | |||
Other assets | 8,863 | 5,514 | ||
Total other assets | 15,195 | 11,846 | ||
Total assets | 4,153,468 | 4,486,998 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 373,554 | 367,088 | ||
Accounts payable - intercompany | 1,237,368 | 1,026,249 | ||
Short-term derivative instruments | 0 | 0 | ||
Current portion of operating lease liabilities | 0 | 0 | ||
Current portion of operating lease liabilities—related parties | 0 | |||
Current maturities of long-term debt | 0 | 0 | ||
Total current liabilities | 1,610,922 | 1,393,337 | ||
Long-term derivative instruments | 0 | 0 | ||
Asset retirement obligation | 59,444 | 58,322 | ||
Uncertain tax position liability | 0 | 0 | ||
Non-current operating lease liabilities | 0 | 0 | ||
Non-current operating lease liabilities—related parties | 0 | |||
Long-term debt, net of current maturities | 0 | 0 | ||
Total liabilities | 1,670,366 | 1,451,659 | ||
Stockholders’ equity: | ||||
Common stock | 0 | 0 | ||
Paid-in capital | 4,171,409 | 4,171,408 | ||
Accumulated other comprehensive loss | 0 | 0 | ||
Accumulated deficit | (1,688,307) | (1,136,069) | ||
Total stockholders’ equity | 2,483,102 | 3,035,339 | ||
Total liabilities and stockholders’ equity | 4,153,468 | 4,486,998 | ||
Reportable legal entities | Non-Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 195 | 195 | ||
Accounts receivable - oil and natural gas sales | 0 | 0 | ||
Accounts receivable - joint interest and other | 0 | 0 | ||
Accounts receivable - intercompany | 0 | 0 | ||
Prepaid expenses and other current assets | 76 | 76 | ||
Short-term derivative instruments | 0 | 0 | ||
Total current assets | 271 | 271 | ||
Property and equipment: | ||||
Oil and natural gas properties | 5,862 | 7,850 | ||
Other property and equipment | 4,019 | 4,019 | ||
Accumulated depletion, depreciation, amortization and impairment | (1,684) | (1,518) | ||
Property and equipment, net | 8,197 | 10,351 | ||
Other assets: | ||||
Equity investments and investments in subsidiaries | 6,186 | 21,000 | ||
Long-term derivative instruments | 0 | |||
Deferred tax asset | 0 | |||
Operating lease assets | 0 | 0 | ||
Operating lease assets—related parties | 0 | |||
Other assets | (1) | 0 | ||
Total other assets | 6,185 | 21,000 | ||
Total assets | 14,653 | 31,622 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 36 | 124 | ||
Accounts payable - intercompany | 4,589 | 4,285 | ||
Short-term derivative instruments | 0 | 0 | ||
Current portion of operating lease liabilities | 0 | 0 | ||
Current portion of operating lease liabilities—related parties | 0 | |||
Current maturities of long-term debt | 0 | 0 | ||
Total current liabilities | 4,625 | 4,409 | ||
Long-term derivative instruments | 0 | 0 | ||
Asset retirement obligation | 0 | 2,033 | ||
Uncertain tax position liability | 0 | 0 | ||
Non-current operating lease liabilities | 0 | 0 | ||
Non-current operating lease liabilities—related parties | 0 | |||
Long-term debt, net of current maturities | 0 | 0 | ||
Total liabilities | 4,625 | 6,442 | ||
Stockholders’ equity: | ||||
Common stock | 0 | 0 | ||
Paid-in capital | 267,558 | 267,557 | ||
Accumulated other comprehensive loss | (59,434) | (44,763) | ||
Accumulated deficit | (198,096) | (197,614) | ||
Total stockholders’ equity | 10,028 | 25,180 | ||
Total liabilities and stockholders’ equity | 14,653 | 31,622 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable - oil and natural gas sales | 0 | 0 | ||
Accounts receivable - joint interest and other | 0 | 0 | ||
Accounts receivable - intercompany | (2,329,441) | (1,908,816) | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Short-term derivative instruments | 0 | 0 | ||
Total current assets | (2,329,441) | (1,908,816) | ||
Property and equipment: | ||||
Oil and natural gas properties | (729) | (729) | ||
Other property and equipment | 0 | 0 | ||
Accumulated depletion, depreciation, amortization and impairment | 0 | 0 | ||
Property and equipment, net | (729) | (729) | ||
Other assets: | ||||
Equity investments and investments in subsidiaries | (2,492,401) | (3,059,791) | ||
Long-term derivative instruments | 0 | |||
Deferred tax asset | 0 | |||
Operating lease assets | 0 | 0 | ||
Operating lease assets—related parties | 0 | |||
Other assets | 0 | 0 | ||
Total other assets | (2,492,401) | (3,059,791) | ||
Total assets | (4,822,571) | (4,969,336) | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Accounts payable - intercompany | (2,329,441) | (1,908,817) | ||
Short-term derivative instruments | 0 | 0 | ||
Current portion of operating lease liabilities | 0 | 0 | ||
Current portion of operating lease liabilities—related parties | 0 | |||
Current maturities of long-term debt | 0 | 0 | ||
Total current liabilities | (2,329,441) | (1,908,817) | ||
Long-term derivative instruments | 0 | 0 | ||
Asset retirement obligation | 0 | 0 | ||
Uncertain tax position liability | 0 | 0 | ||
Non-current operating lease liabilities | 0 | 0 | ||
Non-current operating lease liabilities—related parties | 0 | |||
Long-term debt, net of current maturities | 0 | 0 | ||
Total liabilities | (2,329,441) | (1,908,817) | ||
Stockholders’ equity: | ||||
Common stock | 0 | 0 | ||
Paid-in capital | (4,438,967) | (4,438,965) | ||
Accumulated other comprehensive loss | 59,434 | 44,763 | ||
Accumulated deficit | 1,886,403 | 1,333,683 | ||
Total stockholders’ equity | (2,493,130) | (3,060,519) | ||
Total liabilities and stockholders’ equity | $ (4,822,571) | $ (4,969,336) |
CONDENSED CONSOLIDATING FINAN_4
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Statements of Operations) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Total revenues | $ 246,877,000 | $ 320,578,000 |
Costs and expenses: | ||
Lease operating expenses | 15,986,000 | 19,807,000 |
Production taxes | 4,799,000 | 7,921,000 |
Midstream gathering and processing expenses | 57,896,000 | 70,282,000 |
Depreciation, depletion and amortization | 78,028,000 | 118,433,000 |
Impairment of oil and natural gas properties | 553,345,000 | 0 |
General and administrative expenses | 16,169,000 | 10,057,000 |
Accretion expense | 741,000 | 1,067,000 |
Total costs and expenses | 726,964,000 | 227,567,000 |
(LOSS) INCOME FROM OPERATIONS | (480,087,000) | 93,011,000 |
OTHER EXPENSE (INCOME): | ||
Interest expense | 32,990,000 | 35,621,000 |
Interest income | (152,000) | (152,000) |
Gain on debt extinguishment | (15,322,000) | 0 |
(Income) loss from equity method investments and investments in subsidiaries | 10,789,000 | (4,273,000) |
Other expense (income) | 1,856,000 | (427,000) |
Total other (income) expense | 30,161,000 | 30,769,000 |
LOSS BEFORE INCOME TAXES | (510,248,000) | 62,242,000 |
INCOME TAX EXPENSE | 7,290,000 | 0 |
NET LOSS | (517,538,000) | 62,242,000 |
Reportable legal entities | Parent | ||
Revenues: | ||
Total revenues | 98,268,000 | 186,246,000 |
Costs and expenses: | ||
Lease operating expenses | 0 | 14,893,000 |
Production taxes | 0 | 3,261,000 |
Midstream gathering and processing expenses | 0 | 43,299,000 |
Depreciation, depletion and amortization | 2,502,000 | 118,432,000 |
Impairment of oil and natural gas properties | 0 | |
General and administrative expenses | 24,646,000 | 10,731,000 |
Accretion expense | 0 | 951,000 |
Total costs and expenses | 27,148,000 | 191,567,000 |
(LOSS) INCOME FROM OPERATIONS | 71,120,000 | (5,321,000) |
OTHER EXPENSE (INCOME): | ||
Interest expense | 33,177,000 | 35,925,000 |
Interest income | (59,000) | (147,000) |
Gain on debt extinguishment | (15,322,000) | |
(Income) loss from equity method investments and investments in subsidiaries | 563,366,000 | (102,914,000) |
Other expense (income) | 206,000 | (427,000) |
Total other (income) expense | 581,368,000 | (67,563,000) |
LOSS BEFORE INCOME TAXES | (510,248,000) | 62,242,000 |
INCOME TAX EXPENSE | 7,290,000 | 0 |
NET LOSS | (517,538,000) | 62,242,000 |
Reportable legal entities | Guarantors | ||
Revenues: | ||
Total revenues | 148,609,000 | 134,332,000 |
Costs and expenses: | ||
Lease operating expenses | 15,986,000 | 4,914,000 |
Production taxes | 4,799,000 | 4,660,000 |
Midstream gathering and processing expenses | 57,896,000 | 26,983,000 |
Depreciation, depletion and amortization | 75,360,000 | 1,000 |
Impairment of oil and natural gas properties | 553,345,000 | |
General and administrative expenses | (8,650,000) | (675,000) |
Accretion expense | 741,000 | 116,000 |
Total costs and expenses | 699,477,000 | 35,999,000 |
(LOSS) INCOME FROM OPERATIONS | (550,868,000) | 98,333,000 |
OTHER EXPENSE (INCOME): | ||
Interest expense | (187,000) | (304,000) |
Interest income | (93,000) | (5,000) |
Gain on debt extinguishment | 0 | |
(Income) loss from equity method investments and investments in subsidiaries | 0 | 0 |
Other expense (income) | 1,650,000 | 0 |
Total other (income) expense | 1,370,000 | (309,000) |
LOSS BEFORE INCOME TAXES | (552,238,000) | 98,642,000 |
INCOME TAX EXPENSE | 0 | 0 |
NET LOSS | (552,238,000) | 98,642,000 |
Reportable legal entities | Non-Guarantors | ||
Revenues: | ||
Total revenues | 0 | 0 |
Costs and expenses: | ||
Lease operating expenses | 0 | 0 |
Production taxes | 0 | 0 |
Midstream gathering and processing expenses | 0 | 0 |
Depreciation, depletion and amortization | 166,000 | 0 |
Impairment of oil and natural gas properties | 0 | |
General and administrative expenses | 173,000 | 1,000 |
Accretion expense | 0 | 0 |
Total costs and expenses | 339,000 | 1,000 |
(LOSS) INCOME FROM OPERATIONS | (339,000) | (1,000) |
OTHER EXPENSE (INCOME): | ||
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Gain on debt extinguishment | 0 | |
(Income) loss from equity method investments and investments in subsidiaries | 143,000 | 393,000 |
Other expense (income) | 0 | 0 |
Total other (income) expense | 143,000 | 393,000 |
LOSS BEFORE INCOME TAXES | (482,000) | (394,000) |
INCOME TAX EXPENSE | 0 | 0 |
NET LOSS | (482,000) | (394,000) |
Eliminations | ||
Revenues: | ||
Total revenues | 0 | 0 |
Costs and expenses: | ||
Lease operating expenses | 0 | 0 |
Production taxes | 0 | 0 |
Midstream gathering and processing expenses | 0 | 0 |
Depreciation, depletion and amortization | 0 | 0 |
Impairment of oil and natural gas properties | 0 | |
General and administrative expenses | 0 | 0 |
Accretion expense | 0 | 0 |
Total costs and expenses | 0 | 0 |
(LOSS) INCOME FROM OPERATIONS | 0 | 0 |
OTHER EXPENSE (INCOME): | ||
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Gain on debt extinguishment | 0 | |
(Income) loss from equity method investments and investments in subsidiaries | (552,720,000) | 98,248,000 |
Other expense (income) | 0 | 0 |
Total other (income) expense | (552,720,000) | 98,248,000 |
LOSS BEFORE INCOME TAXES | 552,720,000 | (98,248,000) |
INCOME TAX EXPENSE | 0 | 0 |
NET LOSS | $ 552,720,000 | $ (98,248,000) |
CONDENSED CONSOLIDATING FINAN_5
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Statements of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | $ (517,538) | $ 62,242 |
Foreign currency translation adjustment | (15,030) | 3,801 |
Other comprehensive (loss) income | (15,030) | 3,801 |
Comprehensive (loss) income | (532,568) | 66,043 |
Reportable legal entities | Parent | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | (517,538) | 62,242 |
Foreign currency translation adjustment | (15,030) | 3,801 |
Other comprehensive (loss) income | (15,030) | 3,801 |
Comprehensive (loss) income | (532,568) | 66,043 |
Reportable legal entities | Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | (552,238) | 98,642 |
Foreign currency translation adjustment | (360) | 94 |
Other comprehensive (loss) income | (360) | 94 |
Comprehensive (loss) income | (552,598) | 98,736 |
Reportable legal entities | Non-Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | (482) | (394) |
Foreign currency translation adjustment | (14,670) | 3,707 |
Other comprehensive (loss) income | (14,670) | 3,707 |
Comprehensive (loss) income | (15,152) | 3,313 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | 552,720 | (98,248) |
Foreign currency translation adjustment | 15,030 | (3,801) |
Other comprehensive (loss) income | 15,030 | (3,801) |
Comprehensive (loss) income | $ 567,750 | $ (102,049) |
CONDENSED CONSOLIDATING FINAN_6
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 130,838 | $ 239,765 |
Net cash used in investing activities | (69,809) | (245,563) |
Net cash (used in) provided by financing activities | (65,456) | (28,503) |
Net decrease in cash, cash equivalents and restricted cash | (4,427) | (34,301) |
Cash, cash equivalents and restricted cash at beginning of period | 6,060 | 52,297 |
Cash, cash equivalents and restricted cash at end of period | 1,633 | 17,996 |
Reportable legal entities | Parent | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 64,033 | 210,928 |
Net cash used in investing activities | (448) | (200,970) |
Net cash (used in) provided by financing activities | (65,456) | (28,503) |
Net decrease in cash, cash equivalents and restricted cash | (1,871) | (18,545) |
Cash, cash equivalents and restricted cash at beginning of period | 2,768 | 25,585 |
Cash, cash equivalents and restricted cash at end of period | 897 | 7,040 |
Reportable legal entities | Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 66,805 | 28,837 |
Net cash used in investing activities | (69,361) | (44,593) |
Net cash (used in) provided by financing activities | 0 | 0 |
Net decrease in cash, cash equivalents and restricted cash | (2,556) | (15,756) |
Cash, cash equivalents and restricted cash at beginning of period | 3,097 | 26,711 |
Cash, cash equivalents and restricted cash at end of period | 541 | 10,955 |
Reportable legal entities | Non-Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (435) | (1) |
Net cash used in investing activities | 0 | (432) |
Net cash (used in) provided by financing activities | 435 | 433 |
Net decrease in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 195 | 1 |
Cash, cash equivalents and restricted cash at end of period | 195 | 1 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 435 | 1 |
Net cash used in investing activities | 0 | 432 |
Net cash (used in) provided by financing activities | (435) | (433) |
Net decrease in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) bbl in Thousands, MMBTU in Thousands, $ in Thousands | Sep. 30, 2021 | May 08, 2020MMBTU$ / bblbbl | May 01, 2020USD ($) | Apr. 30, 2020USD ($)MMBTU$ / MMBTUbbl | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | May 08, 2020$ / MMBTU | Nov. 25, 2019USD ($) |
Subsequent Event [Line Items] | ||||||||
Cash receipts (payments) on settled derivative instruments | $ 70,733 | $ (24,836) | ||||||
Aggregate principal amount | 200,000 | |||||||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Daily Volume (Bbls/day) | bbl | 6 | |||||||
Cash receipts (payments) on settled derivative instruments | $ 40,500 | |||||||
Maximum percentage of company's securities allowed to be owned by third party | 4.90% | |||||||
2020 | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Daily Volume (Bbls/day) | bbl | 2 | |||||||
Daily volume (in MMBtu) | MMBTU | 170 | 20 | ||||||
Weighted average price (in usd per MMBtu or Bbl) | 35.60 | 2.50 | 2.64 | |||||
2021 | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Daily volume (in MMBtu) | MMBTU | 250 | |||||||
Weighted average floor price (in usd per MMBtu) | $ / MMBTU | 2.46 | |||||||
Weighted average ceiling price (in use per MMBtu) | $ / MMBTU | 2.81 | |||||||
Senior notes | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate principal amount | $ 47,600 | |||||||
Repurchase amount | $ 12,600 | |||||||
Revolving credit agreement | Nova Scotia, Amegy, KeyBank | Revolving credit agreement | ||||||||
Subsequent Event [Line Items] | ||||||||
Elected commitment amount | $ 1,000,000 | $ 1,200,000 | ||||||
Revolving credit agreement | Nova Scotia, Amegy, KeyBank | Revolving credit agreement | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Elected commitment amount | $ 700,000 | |||||||
Maximum net secured debt to EBITDAX ratio | 2 | |||||||
Forecast | Revolving credit agreement | Nova Scotia, Amegy, KeyBank | Revolving credit agreement | ||||||||
Subsequent Event [Line Items] | ||||||||
Net funded debt to EBITDAX ratio | 4 |