Warren Resources (WRES) 10-Q 7 Apr 17 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 07, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	WRES
Entity Registrant Name	WARREN RESOURCES INC
Entity Central Index Key	892,986
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,000,000

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 17,773	$ 26,764
Accounts Receivable, net of allowance for doubtful accounts of $701 at March 31, 2016 and $16 at December 31, 2015	8,494	9,880
Restricted investment in U.S. Treasury Bonds - available for sale, at fair value (amortized costs of $1,156 at March 31, 2016 and $1,138 at December 31, 2015)	1,523	1,448
Derivative financial instruments	9,402	11,081
Other current assets	4,195	5,439
Total current assets	41,387	54,612
Other Assets
Oil and gas properties - at cost, based on full cost method of accounting, net of accumulated depreciation, depletion and impairment (includes unproved properties excluded from amortization of $- at March 31, 2016 and $14,658 at December 31, 2015)	97,294	162,685
Property and equipment - at cost, net	1,440	1,548
Other assets	3,012	3,107
Total other assets	101,746	167,340
Total assets	143,133	221,952
Current liabilities
Accounts payable and accrued expenses	37,371	43,124
First lien credit facility, net of debt issuance costs of $4,698 at March 31, 2016 and $4,980 at December 31, 2015	229,967	229,685
Second lien credit facility, net of debt issuance costs of $1,850 at March 31, 2016 and $1,952 at December 31, 2015	73,435	72,960
Senior notes, net of debt issuance costs of $4,356 at March 31, 2016 and $5,482 at December 31, 2015	161,082	159,885
Convertible debentures, net of debt issuance costs of $92 at March 31, 2016 and $96 at December 31, 2015	1,520	1,540
Total current liabilities	503,375	507,194
Long-term liabilities
Other long-term liabilities	39,364	38,322
Total liabilities	542,739	545,516
Commitment and Contingencies
Stockholders' Equity (Deficit)
8% convertible preferred stock, par value $.0001; authorized 10,000,000 shares, issued and outstanding, 10,703 shares in 2016 and 2015, respectively (aggregate liquidation preference $128,437 in 2016 and 2015)	128	128
Common stock, $.0001 par value, authorized 100,000,000 shares, issued 85,250,025 shares in 2016 and 85,203,466 shares in 2015	9	9
Additional paid-in capital	516,883	516,715
Accumulated deficit	(916,872)	(840,606)
Accumulated other comprehensive income, net of applicable income taxes	246	190
Total stockholders' equity (deficit)	(399,606)	(323,564)
Total liabilities and stockholders' equity	143,133	221,952
Senior Notes [Member]
Current liabilities
Senior notes, net of debt issuance costs of $4,356 at March 31, 2016 and $5,482 at December 31, 2015	161,082	159,885
Convertible Debentures [Member]
Current liabilities
Convertible debentures, net of debt issuance costs of $92 at March 31, 2016 and $96 at December 31, 2015	$ 1,520	$ 1,540

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Accounts receivable, allowance for doubtful accounts	$ 701,000	$ 16,000
Restricted investments in U.S. Treasury bonds-available for sale, amortized cost	1,156,000	1,138,000
Oil and gas properties, unproved properties excluded from amortization	0	$ 14,658,000
Net of debt issuance costs	$ 4,400,000
Preferred stock dividend rate	8.00%	8.00%
8% convertible preferred stock, par value	$ 0.0001	$ 0.0001
8% convertible preferred stock, authorized shares	10,000,000	10,000,000
8% convertible preferred stock, issued shares	10,703	10,703
8% convertible preferred stock, outstanding shares	10,703	10,703
8% convertible preferred stock, aggregate liquidation preference	$ 128,437,000	$ 128,437,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	85,250,025	85,203,466
First Lien Credit Facility [Member]
Net of debt issuance costs	$ 4,698,000	$ 4,980,000
Second Lien Credit Facility [Member]
Net of debt issuance costs	1,850,000	1,952,000
Senior Notes [Member]
Net of debt issuance costs	4,356,000	5,482,000
Convertible Debentures [Member]
Net of debt issuance costs	$ 92,000	$ 96,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating Revenues
Oil and gas sales	$ 11,231	$ 24,590
Transportation revenue	1,045	1,188
Total revenues	12,276	25,778
Operating Expenses
Lease operating expenses and taxes	10,999	12,508
Depreciation, depletion and accretion	10,411	17,191
Impairment expense	56,702	91,375
Transportation expense	273	577
General and administrative	4,957	5,019
Total operating expenses	83,342	126,670
Income (loss) from operations	(71,066)	(100,892)
Other income (expense)
Interest and other income (expense)	(272)	17
Interest expense	(10,299)	(5,234)
Gain on financial instruments	5,511	3,960
Loss on contingent consideration	(140)	(130)
Total other income (expense)	(5,200)	(1,387)
Income (loss) before provision for income taxes	(76,266)	(102,279)
Deferred income tax (benefit) expense		(8)
Net loss	(76,266)	(102,271)
Less dividends and accretion on preferred shares		3
Net loss applicable to common stockholders	$ (76,266)	$ (102,274)
Loss per common share - Basic and diluted	$ (0.90)	$ (1.26)
Weighted average common shares outstanding - Basic and diluted	85,213,025	80,869,169

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (76,266)	$ (102,271)
Adjustments to reconcile net loss to net cash provided by operating activities:
Accretion of discount on available for sale debt securities	(18)	(17)
Accretion of discount on senior notes	71	131
Accretion of second lien premium	(1,175)
Amortization of deferred bond offering costs	594	515
Depreciation, depletion and accretion	10,411	17,191
Impairment expense	56,702	91,375
Deferred tax expense (benefit)		(8)
Change in fair value of derivative financial instruments	1,678	37
Loss on contingent consideration	140	130
Stock-based compensation	167	1,079
Bad debt expense	701
Change in assets and liabilities:
Decrease (increase) in accounts receivable - trade	843	3,717
(Increase) decrease in other assets	2,173	(1,439)
Increase (decrease) in accounts payable and accruals	(4,052)	(4,030)
Decrease in other long term liabilities		(288)
Net cash provided by (used in) operating activities	(8,031)	5,992
Cash flows from investing activities:
Purchase, exploration and development of oil and gas properties	(868)	(22,992)
Purchase of property and equipment	(59)	(451)
Net cash used in investing activities	(927)	(23,443)
Cash flows from financing activities:
Payments on debt issuance costs	(8)
Payments on debt and debentures	(25)
Proceeds from Credit Facility		19,000
Payments on taxes of vested restricted stock and proceeds from the exercise of options		(292)
Net cash provided by (used in) financing activities	(33)	18,708
Net increase (decrease) in cash and cash equivalents	(8,991)	1,257
Cash and cash equivalents at beginning of period	26,764	1,703
Cash and cash equivalents at end of period	17,773	2,960
Supplemental disclosure of cash flow information
Cash paid for interest, net of amounts capitalized	5,684	11,432
Income taxes paid	$ 0	0
Noncash investing and financing activities
Accrued preferred stock dividend		$ 3

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (76,266)	$ (102,271)
Other comprehensive loss:
Gain (loss ) on investments available for sale	56	(11)
Comprehensive loss	$ (76,210)	$ (102,282)

Financial Statement Presentatio

Financial Statement Presentation	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Statement Presentation	NOTE A—FINANCIAL STATEMENT PRESENTATION Basis of Presentation and Principles of Consolidation Warren Resources, Inc. (the “Company,” “Warren Resources,” “Warren,” “we” or “us”), was originally formed on June 12, 1990 for the purpose of acquiring and developing oil and gas properties. The Company was incorporated under the laws of the state of Maryland prior to incorporation in the state of Delaware effective October 5, 2016. The Company’s properties are primarily located in California, Pennsylvania, and Wyoming. The accompanying unaudited financial statements and related notes present the Company’s consolidated financial position as of March 31, 2016 and December 31, 2015, the consolidated results of operations for the three months ended March 31, 2016 and 2015, the consolidated statements of comprehensive loss for the three months ended March 31, 2016 and 2015 and consolidated cash flows for the three months ended March 31, 2016 and 2015. The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions of Form 10-Q S-X. Form 10-K Form 10-K. Going Concern As a result of the impacts to the Company’s financial position resulting from declining industry conditions and in consideration of the substantial amount of debt outstanding, the Company determined that a filing under Chapter 11 provided the most expeditious manner in which to enhance its liquidity position and effect a substantial reduction in its debt obligations. As a result of these circumstances, management concluded that there is substantial doubt regarding the Company’s ability to continue as a going concern as it is currently structured. Additionally, our independent registered public accounting firm expressed their audit opinion dated March 17, 2016 on the financial statements dated December 31, 2015 with a going concern uncertainty explanatory paragraph. Reclassifications Certain prior year amounts in the consolidated financial statements have been reclassified in order to conform to the current year presentation. Emergence from Voluntary Reorganization under Chapter 11 On June 2, 2016, the Company and certain of its wholly owned subsidiaries (together with the Company, the “Debtors”) filed voluntary petitions (the “Bankruptcy Petitions”) for reorganization (the “Chapter 11 Cases”) under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”), Case No. 16-32760. “debtors-in-possession” The description of the Plan can be found in its entirety by reference to the full text of the Confirmation Order filed on Form 8-K Accounts Receivable Accounts receivable include trade receivables from joint interest owners and oil and gas purchasers. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable under joint operating agreements generally have a right of offset against future oil and gas revenues if a producing well is completed. Accounts receivable are due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts when the Company believes collection is doubtful. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off specific accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. As of March 31, 2016, the Company has an allowance for doubtful accounts of $701,000. The allowance for doubtful accounts at December 31, 2015 was $16,000. Oil and Gas Properties The Company accounts for its oil and gas activities using the full cost method. As prescribed by full cost accounting rules, all costs associated with property acquisition, exploration and development activities are capitalized. Exploration and development costs include dry hole costs, geological and geophysical costs, direct overhead related to exploration and development activities and other costs incurred for the purpose of finding oil and gas reserves. Salaries and benefits paid to employees directly involved in the exploration and development of oil and gas properties as well as other internal costs that can be specifically identified with acquisition, exploration and development activities are also capitalized. Proceeds received from disposals are credited against accumulated cost except when the sale represents a significant disposal of reserves, in which case a gain or loss is recognized. The sum of net capitalized costs and estimated future development and dismantlement costs are depleted on the equivalent unit-of-production method, based on proved oil and gas reserves as determined by independent petroleum engineers. In accordance with full cost accounting rules, the Company is subject to a limitation on capitalized costs. The capitalized cost of oil and gas properties, net of accumulated depreciation, depletion and amortization, may not exceed the estimated future net cash flows from proved oil and gas reserves discounted at 10 percent, plus the cost of unproved properties excluded from amortization, as adjusted for related tax effects. If capitalized costs exceed this limit (the “ceiling limitation”), the excess must be charged to expense. The Company recorded impairment expenses of $56.7 million and $91.4 million for the three months ended March 31, 2016 and 2015, respectively. The costs of certain unevaluated oil and gas properties and exploratory wells being drilled are not included in the costs subject to amortization. The Company assesses costs not being amortized for possible impairments or reductions in value and if impairments or a reduction in value has occurred. No impairment expense for unevaluated oil and gas properties was recorded for the three months ended March 31, 2016 and 2015. Recently Issued Accounting Pronouncements In March 2016, the FASB issued Accounting Standard Update (ASU) No. 2016-9, Compensation-Stock Compensation (ASU 2016-9). 2016-9 In March 2016, the FASB issued ASU No. 2016-06, Contingent Put and Call Options in Debt Instruments 2016-06). 2016-06 2016-06 In February 2016, the FASB issued ASU No. 2016-06, Leases (Topic 842) 2016-02). 2016-02 2016-02 In April 2015, the Financial Accounting Standard Board issued an Accounting Standards Update (“ASU”) that is intended to simplify the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU will be applied retrospectively as of the date of adoption and is effective for fiscal years beginning after December 15, 2015, and interim periods within those years (early adoption permitted). The Company has implemented this standard in the attached financial statements.

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt	NOTE B—DEBT Current maturing long-term debt, net of debt issuance costs and discounts, consisted of the following for the balance sheets dated: March 31, 2016 December 31, 2015 (in thousands) First Lien Credit Facility $ 229,967 $ 229,685 Second Lien Credit Facility 73,435 72,960 Convertible Debentures 1,520 1,540 Senior Notes 161,082 159,885 466,004 464,070 Less current portion (466,004 ) (464,070 ) Long-term portion $ — $ — First Lien Credit Facility and Senior Notes Exchange On May 22, 2015, Warren Resources entered into a first lien credit agreement by and among the Company, Wilmington Trust, National Association, as Administrative Agent, and the lenders from time to time party thereto, that provides for a five-year, $250 million term loan facility (the “First Lien Credit Facility”) which matures on May 22, 2020. At the closing of the First Lien Credit Facility, certain of the first lien lenders extended credit in the form of new term loans in the amount of $172.5 million and in the form of commitments for delayed draw term loans for up to an additional $30 million, subject to certain incurrence tests. Approximately $47 million in additional term loans were issued under the First Lien Credit Facility at closing in exchange for $69.59 million in face value of the 9.000% Senior Notes due 2022, as described further under “9.000% Senior Notes due 2022” below. The conditions applicable to further draw downs under the First Lien Credit Facility were modified as part of the First Amendment to the First Lien Credit Facility that was entered into on October 22, 2015. The First Lien Credit Facility was guaranteed by Warren California, Warren E&P and Warren Marcellus, which are three of the Company’s wholly-owned subsidiaries and was collateralized by substantially all of Warren’s assets, including the equity interests of the guarantors. Warren used the proceeds drawn at closing of the First Lien Credit Facility to repay the balance on its former credit facility, and has been released from all legal obligations on such former facility. The Company accounted for this Exchange transaction in accordance with ASC 470 and ASC 405 and as a result recognized a gain on the retirement of debt in the amount of $14.4 million during 2015. The First Lien Credit Facility is subject to prepayment in respect of asset sales, subject to limited reinvestment rights and certain excluded asset sales. The First Lien Credit Facility also includes certain covenants, including a maintenance covenant requiring the Company to maintain a minimum consolidated first lien leverage ratio. The terms of the maintenance covenant were modified as part of the First Amendment to the First Lien Credit Facility that was entered into on October 22, 2015. The First Lien Credit Facility is subject to other usual and customary conditions, representations, and warranties, including restrictions on certain additional indebtedness, dividends to shareholders, liens, investments, mergers, acquisitions, asset dispositions, repurchase or redemption of our common stock, speculative commodity transactions, transactions with affiliates and other matters. The First Lien Credit Facility is subject to customary events of default. If an event of default occurs and is continuing, the Agent may, or at the request of certain required lenders shall, accelerate amounts due under the First Lien Credit Facility (except for a bankruptcy event of default, in which case such amounts will automatically, by their terms, become due and payable). The annual interest rate on borrowings under the First Lien Credit Facility was 8.5% plus LIBOR for the applicable LIBOR period (with a minimum LIBOR rate of 1%) and was payable quarterly in arrears on the next to last business day of each March, June, September and December. At March 31, 2016 the interest rate was 9.5%. On November 9, 2015, $15 million of additional borrowings were drawn depleting the total available under the facility. The balance outstanding at March 31, 2016 was $230.0 million which was net of debt issuance costs of $4.7 million. On the Effective Date, pursuant to the Plan, all amounts outstanding under the Company’s previously existing First Lien Credit Facility were cancelled and the obligation thereunder terminated, released and discharged. Lenders under the First Lien Credit Facility received distributions of the Company’s common stock, par value $0.01 (the “New Common Stock”) under the Plan, and entered into a new term loan facility with the Company (the Exit Credit Facility as discussed below). Second Lien Credit Facility and Senior Note Exchange On October 22, 2015, the Company entered into a second lien credit facility (the “Second Lien Credit Facility”) by and among the Company, Cortland Capital Market Services, LLC, as Administrative Agent, and the lenders from time to time party thereto. The Second Lien Credit Facility provided for a five-year, approximately $51.0 million term loan facility that matured on November 1, 2020. At closing, certain of the lenders exchanged approximately $63.1 million in face value of previously-issued Senior Notes held by them, plus accrued interest, for (i) approximately $40.1 million of second lien term loans under the Second Lien Facility, and (ii) four million (4,000,000) shares of Company Common Stock and, in addition, extended credit in the form of new second lien term loans in the amount of approximately $11.0 million. The annual interest rate on borrowings under the Second Lien Facility was 12%, with interest payable semi-annually in arrears on each April 20 and October 20. On the first three semi-annual interest payment dates, beginning with April 20, 2016, the Company could elect to pay up to all of such interest (6% per semi-annual period) by capitalizing accrued and unpaid interest and adding the same to the principal amount of the second lien loans then outstanding. For the subsequent three semi-annual interest payment dates, beginning with October 20, 2017 and ending October 20, 2018, the Company could elect to pay up to one quarter of such interest (1.5% per semi-annual period) by capitalizing accrued and unpaid interest and adding the same to the principal amount of the Second Lien Loans then outstanding. The amount of accrued unpaid potential “PIK” interest outstanding on the Second Lien Credit facility at March 31, 2016 was $2.7 million. The transaction was accounted for as a troubled debt restructuring in accordance with ASC 470, whereby no gain on the retirement of debt was recognized and a premium on the issuance equal to the amount of debt retired could be amortized over the life of the instrument. The value of the Second Lien Credit Facility premium at March 31, 2016 was $21.5 million. The total outstanding balance at March 31, 2016 amounted to $73.4 million which was net of debt issuance costs of $1.8 million. On the Effective Date, pursuant to the Plan, all amounts outstanding under the Company’s previously existing Second Lien Credit Facility were cancelled and the obligation thereunder terminated, released and discharged. Lenders under the Second Lien Credit Facility received distributions of New Common Stock under the Plan. Additionally, the lenders under the prepetition Second Lien Credit Facility were party to the Warrant Agreement, pursuant to which they received warrants (the “Warrants”). 9.000% Senior Notes due 2022 On August 11, 2014, we acquired essentially all of the Marcellus Assets (the “Marcellus Assets”) of Citrus Energy Corporation (“Citrus”) and two other working interest owners (the “Marcellus Asset Acquisition”). To finance the Marcellus Asset Acquisition, on August 11, 2014, the Company issued 9.000% senior notes in a private offering at a price equal to 98.617% for a total of $300 million due to mature on August 1, 2022 (the “Unregistered Senior Notes”). Interest was payable on the Unregistered Senior Notes semi-annually in arrears at a rate of 9.000% per annum on each February 1 and August 1. In connection with the First Lien Credit Facility entered into on May 22, 2015, the Company exchanged $69.59 million in face value of the Unregistered Senior Notes previously held by the lenders under the First Lien Credit Facility for approximately $45.23 million of First Lien Term Loans plus accrued unpaid interest of $1.93 million rolled into the First Lien Term Loans as additional borrowing. On July 27, 2015, substantially all of the outstanding Unregistered Senior Notes were exchanged for an equal principal amount of registered 9.000% Senior Notes due 2022 pursuant to a registration statement on Form S-4 In connection with the Second Lien Credit Facility entered into on October 22, 2015, the Company exchanged $63.1 million in face value of Registered Senior Notes previously held by the lenders the Second Lien Credit Facility for approximately $40.1 million of Second Lien Term Loans. We could redeem, at specified redemption prices, some or all of the Senior Notes at any time on or after August 1, 2017. We could also redeem up to 35% of the Senior Notes using the proceeds of certain equity offerings completed before August 1, 2017. If we should sell certain of our assets or experience certain kinds of changes in control, we could be required to offer to purchase the Senior Notes from the holders. The Senior Notes were fully, unconditionally and jointly and severally guaranteed on a senior unsecured basis by certain of our existing subsidiaries and were fully, unconditionally and jointly and severally guaranteed on a senior unsecured basis by our future domestic subsidiaries, subject to certain exceptions. Warren Resources, Inc. is a holding company with no independent assets or operations. Any subsidiaries of the Company other than the subsidiary guarantors are minor. There were no significant restrictions on the Company’s ability, or the ability of any subsidiary guarantor, to obtain funds from its subsidiaries through dividends, loans, advances or otherwise. The total outstanding balance at March 31, 2016 amounted to $161.1 million which was net of debt issuance costs of $4.4 million. The Company elected not to pay the semi-annual interest payment of $7.5 million due on February 1, 2016, although it had sufficient liquidity to make the interest payment in full. According to the agreement, this failure to pay was not an immediate event of default, however, the 30-day 30-day On the Effective Date, pursuant to the Plan, the Company’s 9% Senior Notes due 2022 and the indenture governing the Senior Notes were cancelled and the obligations of the Debtors thereunder were terminated, released and discharged. Holders of the Senior Notes received distributions of New Common Stock under the Plan. Convertible Debentures In January, 2016, $25,000 of debentures were exchanged into $25,000 cash. Convertible debenture balances at March 31, 2016, net of debt issuance costs of $92,000, are as follows: Maturity date Principal (in thousands) Secured Convertible 12% Debentures December 31, 2020 $ 761 Secured Convertible 12% Debentures December 31, 2022 759 $ 1,520 On the Effective Date, pursuant to the Plan, holders of the Company’s 12% Secured Convertible Bonds due December 31, 2020 and the 12% Secured Convertible Bonds due December 31, 2022 received payment in full in cash such that the claim of such holders was unimpaired, and the trustees under each series of Convertible Debentures were paid reasonable and documented unpaid fees and expenses incurred on or before the Effective Date. On the Effective Date, the Convertible Debentures and the indentures governing each series of Convertible Debentures were cancelled and the obligations of the Debtors thereunder were terminated, released and discharged. Other than pursuant to the foregoing, holders of the Convertible Debentures did not receive distributions under the Plan in respect of the Convertible Debentures.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Stockholders' Equity	NOTE C—STOCKHOLDERS’ EQUITY Preferred Stock The preferred stock pays an 8% cumulative dividend which is treated as a deduction of additional paid in capital, due to insufficient retained earnings. The holders of the preferred stock are not entitled to vote except as defined by the agreement or as provided by applicable law. The preferred stock may be voluntarily converted, at the election of the holder, into common stock of the Company based on a conversion rate of one share of preferred stock for 0.50 shares of common stock. The accrual of the dividend is deducted from earnings in the calculation of earnings attributable to common stockholders. Additionally, holders of the preferred stock can elect to require the Company to redeem their preferred stock at a redemption price equal to the liquidation value of $12.00 per share, plus accrued but unpaid dividends, if any, (“Redemption Price”). Upon the receipt of a redemption election, the Company, at its option, shall either: (1) pay the holder cash in the amount equal to the Redemption Price or (2) issue to the holder shares of common stock in an amount equal to 125% of the redemption price and any accrued and unpaid dividends, based on the weighted average closing “bid” price of the Company’s common stock for the thirty trading days immediately preceding the date of the written redemption election by the holder up to a maximum of 1.5 shares of common stock for each one share of preferred stock redeemed. The Company has accreted the carrying value of its preferred stock to its redemption price using the effective interest method with changes recorded to additional paid in capital. The accretion of preferred stock results in a reduction of earnings applicable to common stockholders. Notwithstanding the forgoing, if the closing “bid” price of the Company’s publicly traded common stock as reported by the NASDAQ stock market, or any exchange on which the shares of common stock are traded, exceeds 133% of the conversion price then in effect for the convertible preferred shares for at least 10 days during any 30-day Due to the financial condition of the Company and ultimate filing of bankruptcy in the second quarter of 2016, all preferred stock dividends were suspended in 2016. Securities Authorized for Issuance Under Compensation Plans The Company utilizes restricted stock and stock options to compensate employees, officers, directors and consultants. Total stock-based compensation expense related to stock options and restrictive stock award amounted to $0.2 million and $1.1 million for the three months ended March 31, 2016 and 2015, respectively. A summary of the Company’s stock options at March 31, 2016 is as follows: Weighted Average Incentive Exercise Options Price Outstanding at December 31, 2015 3,593,589 $ 2.26 Issued — — Exercised — — Forfeited or expired (218,625 ) 2.66 Outstanding at March 31, 2016 3,374,964 $ 2.18 The total intrinsic value of options outstanding at March 31, 2016 was $0. A summary of the Company’s restricted stock issued to employees as of March 31, 2016 is as follows: Number Weighted Outstanding at December 31, 2015 1,277,468 $ 0.69 Granted — — Vested (79,980 ) 3.65 Forfeited (10,444 ) 4.61 Outstanding at March 31, 2016 1,187,004 $ 0.45 Restricted Stock Awards for executive officers and employees generally vest ratably over three years. Fair value of our restricted shares is based on the closing stock price on the date of grant. On the Effective Date, pursuant to the Plan, the previously outstanding shares of the Company’s Prepetition Equity Securities, as well as all unexercised incentive stock options, non-qualified

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	NOTE D—FAIR VALUE OF FINANCIAL INSTRUMENTS The estimated fair values of financial instruments recognized in the Consolidated Balance Sheets or disclosed within these Notes to Consolidated Financial Statements have been determined using available market information, information from unrelated third party financial institutions and appropriate valuation methodologies, primarily discounted projected cash flows. However, considerable judgment is required when interpreting market information and other data to develop estimates of fair value. Short-term Assets and Liabilities. U.S. Treasury Bonds—Available-For-Sale Collateral Security Agreement Account (included in other non-current Fixed Rate Debentures. First Lien Credit Facility. Second Lien Credit Facility. Derivative Financial Instruments. 9.000% Senior Notes. March 31, 2016 December 31, 2015 Fair Carrying Fair Carrying (in thousands) Financial assets: Collateral Security Account $ 2,949 $ 2,949 $ 2,812 $ 2,812 U.S. Treasury Bonds-Available-For-Sale Securities 1,523 1,611 1,448 1,636 Derivative Financial Instruments 9,402 9,402 11,081 11,081 Financial liabilities: Fixed Rate Debentures 3,174 1,611 3,057 1,636 First Lien Credit Facility 234,665 234,665 234,665 234,665 Second Lien Credit Facility 75,285 75,285 74,912 74,912 Senior Notes 21,094 165,438 25,090 165,368 FAIR VALUE MEASUREMENTS: Fair value as defined by authoritative literature is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories: Level 1: Level 2: non-exchange over-the-counter Level 3: The valuation assumptions utilized to measure the fair value of the Company’s commodity derivatives were observable inputs based on market data obtained from independent sources and are considered Level 2 inputs (quoted prices for similar assets, liabilities (adjusted) and market-corroborated inputs). The following table presents for each hierarchy level our assets and liabilities, including both current and non-current March 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Assets U.S. Treasury Bonds—Available-For-Sale Securities $ 1,523 $ — $ — $ 1,523 Derivative Financial Instruments $ — $ 9,402 $ — $ 9,402 December 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Assets U.S. Treasury Bonds—Available-For-Sale Securities $ 1,448 $ — $ — $ 1,448 Derivative Financial Instruments $ — $ 11,081 $ — $ 11,081

Asset Retirement Obligation

Asset Retirement Obligation	3 Months Ended
	Mar. 31, 2016
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligation	NOTE E—ASSET RETIREMENT OBLIGATION The estimated fair value of the future costs associated with dismantlement, abandonment and restoration of oil and gas properties is recorded generally upon acquisition or completion of a well. The net estimated costs are discounted to present values using a risk adjusted rate over the estimated economic life of the oil and gas properties. Such costs are capitalized as part of the related asset. The asset is depleted on the units-of-production March 31, 2016 (in thousands) Balance at beginning of period $ 31,405 Liabilities incurred in current period — Liabilities settled in current period — Accretion expense 749 Balance at end of period $ 32,154

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	NOTE F — DERIVATIVE FINANCIAL INSTRUMENTS To minimize the effect of a downturn in oil and gas prices and protect our profitability and the economics of our development plans, we enter into crude oil and natural gas hedge contracts. The terms of contracts depend on various factors, including management’s view of future crude oil and natural gas prices. This price hedging program is designed to moderate the effects of a crude oil and natural gas price downturn while allowing us to participate in some commodity price increases. Management regularly monitors the crude oil and natural gas markets and our financial commitments to determine if, when, and at what level some form of crude oil and/or natural gas hedging and/or basis adjustments or other price protection is appropriate. However, we may use a variety of derivative instruments in the future to hedge. The Company has not designated these derivatives as hedges for accounting purposes. The Company routinely enters into derivative contracts with a variety of counterparties, typically resulting in individual derivative instruments with both fair value asset and liability positions. The Company nets the fair values of derivative instruments executed with the same counterparty pursuant to ISDA master agreements, which mitigate the credit risk of the Company’s derivative instruments by providing for net settlement over the term of the contract and in the event of default or termination of the contract. The following table summarizes the open financial derivative positions, as of March 31, 2016, related to oil and gas production. The Company will receive prices as noted in the table below and will pay a counterparty market price based on the NYMEX (for natural gas production) or WTI (for oil production) index price, settled monthly. Product Type Contract Period Volume Price per Mcf or Bbl NYMEX Oil Collar 04/01/16- 06/30/16 250 Bbl/d $ 55.00 – 69.97 NYMEX Oil Collar 01/01/16- 12/31/16 500 Bbl/d $ 50.00 – 71.50 NYMEX Gas Swap 01/01/16- 10/31/16 15,000 MMBtu/d $ 2.93 NYMEX Gas Swap 01/01/16- 12/31/16 15,000 MMBtu/d $ 3.16 NYMEX Gas Swap 03/01/16- 10/31/16 10,000 MMBtu/d $ 2.72 The tables below summarize the amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments under authoritative guidance. For the Three Months Ended March 31, Derivatives not designated as Hedging Instrument 2016 2015 (in thousands) Realized cash settlements on hedges $ 7,171 $ 3,997 Mark-to-market (1,678 ) (37 ) Total $ 5,493 $ 3,960 The table below reflects the line item in our Consolidated Balance Sheet where the fair value of our net derivatives, are included. March 31, 2016 Derivative Assets December 31, 2015 Derivative Assets Balance Sheet Location Fair Value Balance Sheet Location Fair Value (in thousands) (in thousands) Commodity—Natural Gas Current $ 7,738 Current $ 7,816 Commodity—Oil Current 1,664 Current 3,265 Total derivatives not designated as hedging instruments $ 9,402 $ 11,081 Derivatives Credit Risk The Company does not require collateral or other security from counterparties to support derivative instruments. However, the agreements with those counterparties typically contain netting provisions such that if a default occurs, the non-defaulting As of March 31, 2016, the counterparty to the Company’s commodity derivative contracts consisted of a financial institution which is also a lender under the Company’s Senior Credit Agreement and share in the collateral supporting the Agreement. The Company is not generally required to post additional collateral under derivative agreements. The Company’s derivative agreements contain provisions that require cross defaults and acceleration of those instruments to any material debt. If the Company were to default on any of its material debt agreements, it would be a violation of these provisions, and the counterparties to the derivative instruments could request immediate payment on derivative instruments that are in a net liability position at that time. On June 9, 2016, the Company, subsequent to it filing for bankruptcy, received notice that the counterparty to the three NYMEX Gas Swaps contracts was terminating the contracts. The Company received $1.5 million from the counterparty.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	NOTE G — SUBSEQUENT EVENTS Bankruptcy Proceedings On June 2, 2016, the Debtors filed the Bankruptcy Petitions for the Chapter 11 Cases under the Bankruptcy Code in the Bankruptcy Court, Case No. 16-32760. “debtors-in-possession” Termination of Material Definitive Agreements First- and Second-Lien Credit Facilities On the Effective Date, pursuant to the Plan, all amounts outstanding under the Company’s previously existing first-lien credit facility and second-lien credit facility were cancelled and the obligations thereunder were terminated, released and discharged. Lenders under such first- and second-lien credit facilities received distributions of New Common Stock under the Plan. The Company also entered into the Exit Credit Facility with the lenders of the First Lien Credit Facility. Indenture On the Effective Date, pursuant to the Plan, the Company’s 9% Senior Notes due 2022 and the indenture governing the Senior Notes were cancelled and the obligations of the Debtors thereunder were terminated, released and discharged. Holders of the Senior Notes received distributions of New Common Stock under the Plan. Convertible Debentures On the Effective Date, pursuant to the Plan, holders of the Company’s 12% Secured Convertible Bonds due December 31, 2020 and the 12% Secured Convertible Bonds due December 31, 2022 received payment in full in cash such that the claim of such holders was unimpaired, and the trustees under each series of Secured Bonds were paid reasonable and documented unpaid fees and expenses incurred on or before the Effective Date. On the Effective Date, the Secured Bonds and the indentures governing each series of Secured Bonds were cancelled and the obligations of the Debtors thereunder were terminated, released and discharged. Other than pursuant to the foregoing, holders of the Secured Bonds did not receive distributions under the Plan in respect of the Secured Bonds. Equity Securities and Related Instruments Pursuant to the Plan, on the Effective Date, the previously outstanding shares of the Company’s common stock and preferred stock (collectively, the “ Prepetition Equity Securities Entry into a Material Definitive Agreements New First Lien Exit Facility On the Effective Date, pursuant to the Plan, the Company entered into a Credit Agreement by and among the Company, Wilmington Trust, National Association, as Administrative Agent (the “ Agent Credit Agreement Exit Credit Facility delayed draw term loans The outstanding term loans, along with accrued and unpaid obligations with respect to such loans, under the Exit Credit Facility are subject to prepayment in respect of (i) proceeds from the issuance or incurrence of debt, excluding those items of debt permitted to be issued or incurred under the Credit Agreement and (ii) casualty proceeds and proceeds received from asset dispositions, subject to limited reinvestment rights and certain excluded asset sales. The Exit Credit Facility is guaranteed by all of the Company’s wholly owned subsidiaries (the “ Guarantors pari passu Proceeds of the delayed draw term loans under the Exit Credit Facility may be used from time to time for lawful corporate purposes, including for working capital needs and to finance corporate and capital expenditures and permitted acquisitions of oil and gas properties and other assets related to the exploration, production, development, processing, gathering, storage and transportation of hydrocarbons. The interest rate on borrowings under the Exit Credit Facility will be equal to the sum of (i) the LIBOR rate (with a minimum LIBOR rate of 1%) plus 9.0% per annum on the aggregate outstanding principal amount of the loans outstanding, which shall be paid in cash, plus (ii) an amount equal to 1.0% per annum on the aggregate outstanding principal amount of the loans outstanding, which shall be paid-in-kind Maturity Date Stockholders Agreement On the Effective Date, pursuant to the Plan, the Company entered into a Stockholders Agreement (the “ Stockholders Agreement Tag-Along Warrant Agreement On the Effective Date, pursuant to the Plan, the Company entered into the Warrant Agreement, pursuant to which the Company issued the Warrants to Claren Road. The Warrants may be exercised in whole or in part and only during the period (the “Exercise Period”) commencing on the Effective Date and terminating at 5:00 p.m., Eastern time, on October 5, 2021 (the “Warrant Expiration Date”), at an exercise price of $10.50 per share. All Warrants not exercised on or before such time on the Warrant Expiration Date shall become void, and the rights of the holders of such warrants pursuant to the warrants, the Warrant Agreement or the Stockholders Agreement shall cease at such time on the Warrant Expiration Date. The Company may, subject to the Stockholders Agreement, extend the duration of the Warrants by delaying the Warrant Expiration Date. Sales of Equity Securities On the Effective Date, pursuant to the Plan: • 7,899,537 shares of New Common Stock were issued to the lenders under the prepetition first-lien credit facility; • 755,000 shares of New Common Stock were issued to the lenders under the prepetition second-lien credit facility; • 1,284,818 shares of New Common Stock were issued pro rata to the holders of the Senior Notes; and • 60,645 shares of New Common Stock were issued to parties involved in the Marcellus Asset Acquisition. Additionally, the lenders under the prepetition second-lien credit facility are party to the Warrant Agreement, pursuant to which they received Warrants that are initially exercisable for an aggregate of 526,316 shares of New Common Stock.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE H — Commitments and Contingencies Bankruptcy Claims Associated with the Company’s filing and emergence from the Chapter 11 Cases, creditors have filed claims against the Company. The claims reconciliation process is ongoing and the estimated liability has not been finalized. The process includes review of the underlying claim filed against the Company and a reconciliation against the debtor’s books and records. The Company has estimated the liabilities associated with these claims at $1.5 million. These liabilities are recorded in the consolidated financial statements in the third and fourth quarters of 2016.

Financial Statement Presentat15

Financial Statement Presentation (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation Warren Resources, Inc. (the “Company,” “Warren Resources,” “Warren,” “we” or “us”), was originally formed on June 12, 1990 for the purpose of acquiring and developing oil and gas properties. The Company was incorporated under the laws of the state of Maryland prior to incorporation in the state of Delaware effective October 5, 2016. The Company’s properties are primarily located in California, Pennsylvania, and Wyoming. The accompanying unaudited financial statements and related notes present the Company’s consolidated financial position as of March 31, 2016 and December 31, 2015, the consolidated results of operations for the three months ended March 31, 2016 and 2015, the consolidated statements of comprehensive loss for the three months ended March 31, 2016 and 2015 and consolidated cash flows for the three months ended March 31, 2016 and 2015. The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions of Form 10-Q S-X. Form 10-K Form 10-K.
Going Concern	Going Concern As a result of the impacts to the Company’s financial position resulting from declining industry conditions and in consideration of the substantial amount of debt outstanding, the Company determined that a filing under Chapter 11 provided the most expeditious manner in which to enhance its liquidity position and effect a substantial reduction in its debt obligations. As a result of these circumstances, management concluded that there is substantial doubt regarding the Company’s ability to continue as a going concern as it is currently structured. Additionally, our independent registered public accounting firm expressed their audit opinion dated March 17, 2016 on the financial statements dated December 31, 2015 with a going concern uncertainty explanatory paragraph.
Reclassifications	Reclassifications Certain prior year amounts in the consolidated financial statements have been reclassified in order to conform to the current year presentation.
Emergence from Voluntary Reorganization under Chapter 11	Emergence from Voluntary Reorganization under Chapter 11 On June 2, 2016, the Company and certain of its wholly owned subsidiaries (together with the Company, the “Debtors”) filed voluntary petitions (the “Bankruptcy Petitions”) for reorganization (the “Chapter 11 Cases”) under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”), Case No. 16-32760. “debtors-in-possession” The description of the Plan can be found in its entirety by reference to the full text of the Confirmation Order filed on Form 8-K
Accounts Receivable	Accounts Receivable Accounts receivable include trade receivables from joint interest owners and oil and gas purchasers. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable under joint operating agreements generally have a right of offset against future oil and gas revenues if a producing well is completed. Accounts receivable are due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts when the Company believes collection is doubtful. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off specific accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. As of March 31, 2016, the Company has an allowance for doubtful accounts of $701,000. The allowance for doubtful accounts at December 31, 2015 was $16,000.
Oil and Gas Properties	Oil and Gas Properties The Company accounts for its oil and gas activities using the full cost method. As prescribed by full cost accounting rules, all costs associated with property acquisition, exploration and development activities are capitalized. Exploration and development costs include dry hole costs, geological and geophysical costs, direct overhead related to exploration and development activities and other costs incurred for the purpose of finding oil and gas reserves. Salaries and benefits paid to employees directly involved in the exploration and development of oil and gas properties as well as other internal costs that can be specifically identified with acquisition, exploration and development activities are also capitalized. Proceeds received from disposals are credited against accumulated cost except when the sale represents a significant disposal of reserves, in which case a gain or loss is recognized. The sum of net capitalized costs and estimated future development and dismantlement costs are depleted on the equivalent unit-of-production method, based on proved oil and gas reserves as determined by independent petroleum engineers. In accordance with full cost accounting rules, the Company is subject to a limitation on capitalized costs. The capitalized cost of oil and gas properties, net of accumulated depreciation, depletion and amortization, may not exceed the estimated future net cash flows from proved oil and gas reserves discounted at 10 percent, plus the cost of unproved properties excluded from amortization, as adjusted for related tax effects. If capitalized costs exceed this limit (the “ceiling limitation”), the excess must be charged to expense. The Company recorded impairment expenses of $56.7 million and $91.4 million for the three months ended March 31, 2016 and 2015, respectively. The costs of certain unevaluated oil and gas properties and exploratory wells being drilled are not included in the costs subject to amortization. The Company assesses costs not being amortized for possible impairments or reductions in value and if impairments or a reduction in value has occurred. No impairment expense for unevaluated oil and gas properties was recorded for the three months ended March 31, 2016 and 2015.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In March 2016, the FASB issued Accounting Standard Update (ASU) No. 2016-9, Compensation-Stock Compensation (ASU 2016-9). 2016-9 In March 2016, the FASB issued ASU No. 2016-06, Contingent Put and Call Options in Debt Instruments 2016-06). 2016-06 2016-06 In February 2016, the FASB issued ASU No. 2016-06, Leases (Topic 842) 2016-02). 2016-02 2016-02 In April 2015, the Financial Accounting Standard Board issued an Accounting Standards Update (“ASU”) that is intended to simplify the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU will be applied retrospectively as of the date of adoption and is effective for fiscal years beginning after December 15, 2015, and interim periods within those years (early adoption permitted). The Company has implemented this standard in the attached financial statements.

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Long-Term Liabilities	Current maturing long-term debt, net of debt issuance costs and discounts, consisted of the following for the balance sheets dated: March 31, 2016 December 31, 2015 (in thousands) First Lien Credit Facility $ 229,967 $ 229,685 Second Lien Credit Facility 73,435 72,960 Convertible Debentures 1,520 1,540 Senior Notes 161,082 159,885 466,004 464,070 Less current portion (466,004 ) (464,070 ) Long-term portion $ — $ —
Schedule of Convertible Debt	Convertible debenture balances at March 31, 2016, net of debt issuance costs of $92,000, are as follows: Maturity date Principal (in thousands) Secured Convertible 12% Debentures December 31, 2020 $ 761 Secured Convertible 12% Debentures December 31, 2022 759 $ 1,520

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Summary of Company's Stock Options	A summary of the Company’s stock options at March 31, 2016 is as follows: Weighted Average Incentive Exercise Options Price Outstanding at December 31, 2015 3,593,589 $ 2.26 Issued — — Exercised — — Forfeited or expired (218,625 ) 2.66 Outstanding at March 31, 2016 3,374,964 $ 2.18 The total intrinsic value of options outstanding at March 31, 2016 was $0.
Schedule of Restricted Stock Issued to Employees	A summary of the Company’s restricted stock issued to employees as of March 31, 2016 is as follows: Number Weighted Outstanding at December 31, 2015 1,277,468 $ 0.69 Granted — — Vested (79,980 ) 3.65 Forfeited (10,444 ) 4.61 Outstanding at March 31, 2016 1,187,004 $ 0.45

Fair Value of Financial Instr18

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments	March 31, 2016 December 31, 2015 Fair Carrying Fair Carrying (in thousands) Financial assets: Collateral Security Account $ 2,949 $ 2,949 $ 2,812 $ 2,812 U.S. Treasury Bonds-Available-For-Sale Securities 1,523 1,611 1,448 1,636 Derivative Financial Instruments 9,402 9,402 11,081 11,081 Financial liabilities: Fixed Rate Debentures 3,174 1,611 3,057 1,636 First Lien Credit Facility 234,665 234,665 234,665 234,665 Second Lien Credit Facility 75,285 75,285 74,912 74,912 Senior Notes 21,094 165,438 25,090 165,368
Schedule of Assets and Liabilities, Including both Current and Non-Current Portions, Measured at Fair Value on a Recurring Basis	The following table presents for each hierarchy level our assets and liabilities, including both current and non-current March 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Assets U.S. Treasury Bonds—Available-For-Sale Securities $ 1,523 $ — $ — $ 1,523 Derivative Financial Instruments $ — $ 9,402 $ — $ 9,402 December 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Assets U.S. Treasury Bonds—Available-For-Sale Securities $ 1,448 $ — $ — $ 1,448 Derivative Financial Instruments $ — $ 11,081 $ — $ 11,081

Asset Retirement Obligation (Ta

Asset Retirement Obligation (Tables)	3 Months Ended
	Mar. 31, 2016
Asset Retirement Obligation Disclosure [Abstract]
Schedule of Reconciliation of the Company's Asset Retirement Obligations	A reconciliation of the Company’s asset retirement obligations is as follows: March 31, 2016 (in thousands) Balance at beginning of period $ 31,405 Liabilities incurred in current period — Liabilities settled in current period — Accretion expense 749 Balance at end of period $ 32,154

Derivative Financial Instrume20

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of Open Financial Derivative Positions Related to Oil and Gas Production	The following table summarizes the open financial derivative positions, as of March 31, 2016, related to oil and gas production. The Company will receive prices as noted in the table below and will pay a counterparty market price based on the NYMEX (for natural gas production) or WTI (for oil production) index price, settled monthly. Product Type Contract Period Volume Price per Mcf or Bbl NYMEX Oil Collar 04/01/16- 06/30/16 250 Bbl/d $ 55.00 – 69.97 NYMEX Oil Collar 01/01/16- 12/31/16 500 Bbl/d $ 50.00 – 71.50 NYMEX Gas Swap 01/01/16- 10/31/16 15,000 MMBtu/d $ 2.93 NYMEX Gas Swap 01/01/16- 12/31/16 15,000 MMBtu/d $ 3.16 NYMEX Gas Swap 03/01/16- 10/31/16 10,000 MMBtu/d $ 2.72
Summary of Amount of Gains (Losses) Recognized In Income from Derivative Instruments Not Designated as Hedging Instruments	The tables below summarize the amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments under authoritative guidance. For the Three Months Ended March 31, Derivatives not designated as Hedging Instrument 2016 2015 (in thousands) Realized cash settlements on hedges $ 7,171 $ 3,997 Mark-to-market (1,678 ) (37 ) Total $ 5,493 $ 3,960
Schedule of Fair Value and Balance Sheet Location of Net Derivatives	The table below reflects the line item in our Consolidated Balance Sheet where the fair value of our net derivatives, are included. March 31, 2016 Derivative Assets December 31, 2015 Derivative Assets Balance Sheet Location Fair Value Balance Sheet Location Fair Value (in thousands) (in thousands) Commodity—Natural Gas Current $ 7,738 Current $ 7,816 Commodity—Oil Current 1,664 Current 3,265 Total derivatives not designated as hedging instruments $ 9,402 $ 11,081

Financial Statement Presentat21

Financial Statement Presentation - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Receivables [Abstract]
Credit period	30 days
Impairment of oil and gas properties	$ 56,702,000	$ 91,375,000
Impairment of unevaluated oil and gas properties	$ 0	$ 0
Discount rate applied to estimated future net revenues from proved oil and gas reserves (as a percent)	10.00%
Allowance for doubtful accounts	$ 701,000		$ 16,000

Debt - Schedule of Long-term Li

Debt - Schedule of Long-term Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Convertible Debentures	$ 1,520	$ 1,540
Senior Notes	161,082	159,885
Total long-term debt	466,004	464,070
Total long-term debt	466,004	464,070
Less current portion	(466,004)	(464,070)
Long-term portion	0	0
First Lien Credit Facilities [Member]
Debt Instrument [Line Items]
Credit Facility	229,967	229,685
Second Lien Credit Facility [Member]
Debt Instrument [Line Items]
Credit Facility	$ 73,435	$ 72,960

Debt - Additional Information (

Debt - Additional Information (Detail) $ / shares in Units, shares in Millions	Aug. 01, 2017	Nov. 09, 2015USD ($)	Oct. 22, 2015USD ($)ItemSubsidiariesshares	May 22, 2015USD ($)	Mar. 31, 2016USD ($)$ / shares	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)$ / shares	Oct. 05, 2016$ / shares	Jan. 31, 2016USD ($)	Aug. 11, 2014USD ($)
Debt Instrument [Line Items]
Draws on additional borrowings						$ 19,000,000
Debt issuance costs, net					$ 4,400,000
Outstanding borrowing amount					$ 466,004,000		$ 464,070,000
Common stock, par value | $ / shares					$ 0.0001		$ 0.0001
Senior Notes					$ 161,100,000
Convertible debentures									$ 25,000
Senior Notes [Member]
Debt Instrument [Line Items]
Face amount of debt instrument										$ 300,000,000
Interest rate (as a percent)				9.00%				9.00%		9.00%
Gain on retirement of debt							$ 14,400,000
Debt issuance costs, net					4,356,000		$ 5,482,000
Percentage on initial purchase price										98.617%
Interest payment due on February 1, 2016, elected not to make					$ 7,500,000
Grace period for interest payment before event of default					30 days
Minimum principal holding percentage, right to declare acceleration of debt obligations					25.00%
Secured Convertible Debentures, due December 31, 2020 [Member]
Debt Instrument [Line Items]
Interest rate (as a percent)					12.00%
Outstanding borrowing amount					$ 761,000
Secured Convertible Debentures, due December 31, 2022 [Member]
Debt Instrument [Line Items]
Interest rate (as a percent)					12.00%
Outstanding borrowing amount					$ 759,000
Convertible Debenture [Member]
Debt Instrument [Line Items]
Debt issuance costs, net					92,000
Scenario, Forecast [Member] | Senior Notes [Member] | Maximum [Member]
Debt Instrument [Line Items]
Percentage of Senior Notes can be redeemed on or after August 1, 2017	35.00%
First Lien Credit Facility [Member] | Credit Facility [Member]
Debt Instrument [Line Items]
Term of loan				5 years
Face amount of debt instrument				$ 250,000,000
Debt conversion, face amount				47,000,000
Number of wholly-owned subsidiaries that guarantee Line of Credit Facility | Subsidiaries			3
First Lien Credit Facility [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Fair value of Senior Notes exchanged				69,590,000
First Lien Credit Facility [Member] | Certain Lenders [Member] | Credit Facility [Member]
Debt Instrument [Line Items]
Borrowing capacity				172,500,000
Additional borrowing capacity				30,000,000
Debt conversion, face amount				45,230,000
Accrued unpaid interest rolled into the Lien Term Loans				$ 1,930,000
Second Lien Credit Facility [Member] | Certain Holders | Credit Facility [Member]
Debt Instrument [Line Items]
Debt conversion, face amount			$ 40,100,000
Second Lien Credit Facility [Member] | Certain Holders | Senior Notes [Member]
Debt Instrument [Line Items]
Fair value of Senior Notes exchanged			$ 63,100,000
Credit Facility [Member] | First Lien Credit Facility [Member]
Debt Instrument [Line Items]
Draws on additional borrowings		$ 15,000,000
Debt issuance costs, net					4,700,000
Outstanding borrowing amount					$ 230,000,000
Credit Facility [Member] | First Lien Credit Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Interest rate (as a percent)			8.50%
Variable rate basis					LIBOR
Interest rate during the period (as a percent)					9.50%
Credit Facility [Member] | First Lien Credit Facility [Member] | LIBOR [Member] | Minimum [Member]
Debt Instrument [Line Items]
Margin (as a percent)					1.00%
Credit Facility [Member] | First Lien Credit Facility [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Common stock, par value | $ / shares								$ 0.01
Credit Facility [Member] | Second Lien Credit Facility [Member]
Debt Instrument [Line Items]
Term of loan			5 years
Face amount of debt instrument			$ 51,000,000
Interest rate (as a percent)			12.00%
Gain on retirement of debt					$ 0
Debt issuance costs, net					1,800,000
Accrued unpaid interest rolled into the Lien Term Loans					2,700,000
Line of credit premium value					21,500,000
Outstanding balance					$ 73,400,000
Credit Facility [Member] | Second Lien Credit Facility [Member] | Beginning With April 20, 2016 [Member]
Debt Instrument [Line Items]
Number of semi annual interest payment dates | Item			3
Semi-annual interest may elect (as a percent)			6.00%
Credit Facility [Member] | Second Lien Credit Facility [Member] | Beginning with October 20, 2017 and Ending October 20, 2018 [Member]
Debt Instrument [Line Items]
Number of semi annual interest payment dates | Item			3
Semi-annual interest may elect (as a percent)			1.50%
Credit Facility [Member] | Second Lien Credit Facility [Member] | Certain Lenders [Member]
Debt Instrument [Line Items]
Face amount of debt instrument			$ 11,000,000
Credit Facility [Member] | Second Lien Credit Facility [Member] | Certain Holders
Debt Instrument [Line Items]
Debt conversion, face amount			40,100,000
Fair value of Senior Notes exchanged			$ 63,100,000
Number of common stock shares issued for conversion of debt | shares			4

Debt - Schedule of Convertible

Debt - Schedule of Convertible Debt (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Debt Conversion [Line Items]
Principal amount	$ 466,004	$ 464,070
Secured Convertible Debentures, due December 31, 2020 [Member]
Debt Conversion [Line Items]
Maturity date	Dec. 31, 2020
Principal amount	$ 761
Interest rate (as a percent)	12.00%
Secured Convertible Debentures, due December 31, 2022 [Member]
Debt Conversion [Line Items]
Maturity date	Dec. 31, 2022
Principal amount	$ 759
Interest rate (as a percent)	12.00%
Secured Convertible Debentures [Member]
Debt Conversion [Line Items]
Principal amount	$ 1,520

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Class of Stock [Line Items]
Cumulative dividend on preferred stock (as a percent)	8.00%		8.00%
Number of common shares into which one share of preferred stock is to be converted	0.50
Redemption price (in dollars per share)	$ 12
Shares to be issued as percentage of redemption price and any accrued and unpaid dividends	125.00%
Number of trading days considered for calculating the weighted average closing bid price at which preferred stock will be redeemed	30 days
Maximum number of shares of common stock that the company, at its option, can issue for each one share of preferred stock redeemed	1.5
Percentage of conversion price that the entity's common stock must exceed to give the entity the right to redeem	133.00%
Minimum number of days within 30-day trading period in which the closing price of the entity's common stock must exceed the conversion price	10 days
Number of trading days during which the closing bid price of the entity's common stock must exceed the conversion price	30 days
Total stock-based compensation expense related to stock options and restrictive stock award	$ 0.2	$ 1.1
Stock Options [Member]
Class of Stock [Line Items]
Intrinsic value of options outstanding	$ 0
Restricted Stock [Member]
Class of Stock [Line Items]
Vesting period	3 years
Preferred Stock [Member]
Class of Stock [Line Items]
Redemption price (in dollars per share)	$ 12

Stockholder's Equity - Summary

Stockholder's Equity - Summary of Company's Stock Options (Detail) - Stock Options [Member]	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incentive Options, Outstanding Beginning balance | shares	3,593,589
Incentive Options,Issued | shares	0
Incentive Options, Exercised | shares	0
Incentive Options, Forfeited or expired | shares	(218,625)
Incentive Options, Outstanding Ending balance | shares	3,374,964
Weighted Average Exercise Price, Outstanding Beginning balance | $ / shares	$ 2.26
Weighted Average Exercise Price, Issued | $ / shares	0
Weighted Average Exercise Price, Exercised | $ / shares	0
Weighted Average Exercise Price, Forfeited or expired | $ / shares	2.66
Weighted Average Exercise Price, Outstanding Ending balance | $ / shares	$ 2.18

Stockholder's Equity - Schedule

Stockholder's Equity - Schedule of Restricted Stock Issued to Employees (Detail) - Restricted Stock [Member]	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding, Beginning balance | shares	1,277,468
Shares, Granted | shares	0
Shares, Vested | shares	(79,980)
Shares, Forfeited | shares	(10,444)
Shares, Outstanding, Ending balance | shares	1,187,004
Weighted Average Fair Value, Outstanding, Beginning balance | $ / shares	$ 0.69
Weighted Average Fair Value, Granted | $ / shares	0
Weighted Average Fair Value, Vested | $ / shares	3.65
Weighted Average Fair Value, Forfeited | $ / shares	4.61
Weighted Average Fair Value, Outstanding, Ending balance | $ / shares	$ 0.45

Fair Value of Financial Instr28

Fair Value of Financial Instruments - Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financial assets:
U.S. Treasury Bonds-Available-For-Sale Securities	$ 1,523	$ 1,448
Fair Value [Member]
Financial assets:
Collateral Security Account	2,949	2,812
U.S. Treasury Bonds-Available-For-Sale Securities	1,523	1,448
Derivative Financial Instruments	9,402	11,081
Financial liabilities:
Fixed Rate Debentures	3,174	3,057
First Lien Credit Facility	234,665	234,665
Second Lien Credit Facility	75,285	74,912
Senior Notes	21,094	25,090
Carrying Amount[ Member]
Financial assets:
Collateral Security Account	2,949	2,812
U.S. Treasury Bonds-Available-For-Sale Securities	1,611	1,636
Derivative Financial Instruments	9,402	11,081
Financial liabilities:
Fixed Rate Debentures	1,611	1,636
First Lien Credit Facility	234,665	234,665
Second Lien Credit Facility	75,285	74,912
Senior Notes	$ 165,438	$ 165,368

Fair Value of Financial Instr29

Fair Value of Financial Instruments - Schedule of Assets and Liabilities, Including both Current and Non-Current Portions, Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets
U.S. Treasury Bonds-Available-For-Sale Securities	$ 1,523	$ 1,448
Derivative Financial Instruments	9,402	11,081
Level 1 [Member]
Assets
U.S. Treasury Bonds-Available-For-Sale Securities	1,523	1,448
Level 2 [Member]
Assets
Derivative Financial Instruments	$ 9,402	$ 11,081

Asset Retirement Obligation - A

Asset Retirement Obligation - Additional Information (Detail) $ in Millions	Mar. 31, 2016USD ($)
Asset Retirement Obligation Disclosure [Abstract]
Fair market value of cash held in escrow that is legally restricted for potential plugging and abandonment liability	$ 2.8

Asset Retirement Obligation - S

Asset Retirement Obligation - Schedule of Reconciliation of the Company's Asset Retirement Obligations (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Asset Retirement Obligation Disclosure [Abstract]
Balance at beginning of period	$ 31,405
Liabilities incurred in current period	0
Liabilities settled in current period	0
Accretion expense	749
Balance at end of period	$ 32,154

Derivative Financial Instrume32

Derivative Financial Instruments - Summary of Open Financial Derivative Positions Related to Oil and Gas Production (Detail) - Long [Member]	3 Months Ended
	Mar. 31, 2016MMBTU / dbbl / d$ / bbl$ / Mcf
NYMEX Oil [Member] | Collar 04/01/16- 06/30/16 [Member]
Derivative [Line Items]
Contract Period, Beginning	Apr. 1, 2016
Contract Period, Ending	Jun. 30, 2016
Volume | bbl / d	250
Price per Mcf or Bbl, Cap Price	55
Price per Mcf or Bbl, Cap Price	69.97
NYMEX Oil [Member] | Collar 01/01/16- 12/31/16 [Member]
Derivative [Line Items]
Contract Period, Beginning	Jan. 1, 2016
Contract Period, Ending	Dec. 31, 2016
Volume | bbl / d	500
Price per Mcf or Bbl, Cap Price	50
Price per Mcf or Bbl, Cap Price	71.50
NYMEX Gas [Member] | Swap 01/01/16- 10/31/16 [Member]
Derivative [Line Items]
Contract Period, Beginning	Jan. 1, 2016
Contract Period, Ending	Oct. 31, 2016
Volume | MMBTU / d	15,000
Price per Mcf or Bbl, Strike Price | $ / Mcf	2.93
NYMEX Gas [Member] | Swap 01/01/16- 12/31/16 [Member]
Derivative [Line Items]
Contract Period, Beginning	Jan. 1, 2016
Contract Period, Ending	Dec. 31, 2016
Volume | MMBTU / d	15,000
Price per Mcf or Bbl, Strike Price | $ / Mcf	3.16
NYMEX Gas [Member] | Swap 03/01/16- 10/31/16 [Member]
Derivative [Line Items]
Contract Period, Beginning	Mar. 1, 2016
Contract Period, Ending	Oct. 31, 2016
Volume | MMBTU / d	10,000
Price per Mcf or Bbl, Strike Price | $ / Mcf	2.72

Derivative Financial Instrume33

Derivative Financial Instruments - Summary of Amount of Gains (Losses) Recognized In Income from Derivative Instruments Not Designated as Hedging Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Total	$ 5,511	$ 3,960
Commodity Derivatives [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Realized cash settlements on hedges	7,171	3,997
Mark-to-market gain (loss) on hedges	(1,678)	(37)
Total	$ 5,493	$ 3,960

Derivative Financial Instrume34

Derivative Financial Instruments - Schedule of Fair Value and Balance Sheet Location of Net Derivatives (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Derivative Assets, current	$ 9,402	$ 11,081
Commodity Derivatives [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	9,402	11,081
Commodity Derivatives [Member] | Not Designated as Hedging Instrument [Member] | Oil [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, current	1,664	3,265
Commodity Derivatives [Member] | Not Designated as Hedging Instrument [Member] | Natural Gas [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, current	$ 7,738	$ 7,816

Derivative Financial Instrume35

Derivative Financial Instruments - Additional Information (Detail) $ in Millions	Jun. 09, 2016USD ($)
Scenario, Forecast [Member]
Derivatives, Fair Value [Line Items]
Proceeds from counterparty on termination of derivatives	$ 1.5

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Oct. 05, 2016	May 22, 2015	Aug. 11, 2014
Subsequent Event [Line Items]
Warrant expiration date	Oct. 5, 2021
Warrant exercise price	$ 10.5
Marcellus Asset Acquisition [Member]
Subsequent Event [Line Items]
Common stock, new issues	60,645
First Lien Credit Facility [Member]
Subsequent Event [Line Items]
Common stock, new issues	7,899,537
Second Lien Credit Facility [Member]
Subsequent Event [Line Items]
Common stock, new issues	755,000
Secured Convertible Debentures, due December 31, 2020 [Member]
Subsequent Event [Line Items]
Interest rate (as a percent)	12.00%
Secured Convertible Debentures, due December 31, 2022 [Member]
Subsequent Event [Line Items]
Interest rate (as a percent)	12.00%
Credit Facility [Member]
Subsequent Event [Line Items]
Common stock, new issues	1,284,818
Credit Facility [Member] | First Lien Exit Facility [Member]
Subsequent Event [Line Items]
Face amount of debt instrument	$ 150,000,000
Borrowing capacity	130,000,000
Additional borrowing capacity	$ 20,000,000
Variable rate basis	LIBOR
Credit Facility [Member] | First Lien Exit Facility [Member] | LIBOR [Member]
Subsequent Event [Line Items]
Interest rate (as a percent)	9.00%
Credit Facility [Member] | First Lien Credit Facility [Member]
Subsequent Event [Line Items]
Borrowing capacity			$ 250,000,000
Credit Facility [Member] | Second Lien Credit Facility [Member]
Subsequent Event [Line Items]
Common stock, new issues	526,316
Senior Notes [Member]
Subsequent Event [Line Items]
Interest rate (as a percent)		9.00%	9.00%	9.00%
Borrowing capacity				$ 300,000,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	Mar. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Bankruptcy claims amount	$ 1.5