Cover page
Cover page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 24, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-31539 | |
Entity Registrant Name | SM ENERGY CO | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-0518430 | |
Entity Address, Address Line One | 1775 Sherman Street, Suite 1200, | |
Entity Address, City or Town | Denver, | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80203 | |
City Area Code | (303) | |
Local Phone Number | 861-8140 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | SM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 112,857,163 | |
Entity Central Index Key | 0000893538 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share data) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 10 | $ 77,965 |
Accounts receivable | 146,211 | 167,536 |
Derivative assets | 143,142 | 175,130 |
Prepaid expenses and other | 21,751 | 8,632 |
Total current assets | 311,114 | 429,263 |
Property and equipment (successful efforts method): | ||
Proved oil and gas properties | 8,143,381 | 7,278,362 |
Accumulated depletion, depreciation, and amortization | (3,953,181) | (3,417,953) |
Unproved oil and gas properties | 1,434,435 | 1,581,401 |
Wells in progress | 325,230 | 295,529 |
Properties held for sale, net | 0 | 5,280 |
Other property and equipment, net of accumulated depreciation of $64,971 and $57,102, respectively | 79,278 | 88,546 |
Total property and equipment, net | 6,029,143 | 5,831,165 |
Noncurrent assets: | ||
Derivative assets | 38,571 | 58,499 |
Other noncurrent assets | 74,255 | 33,935 |
Total noncurrent assets | 112,826 | 92,434 |
Total assets | 6,453,083 | 6,352,862 |
Other property and equipment, accumulated depreciation | 64,971 | 57,102 |
Current liabilities: | ||
Accounts payable and accrued expenses | 431,440 | 403,199 |
Derivative liabilities | 37,798 | 62,853 |
Other current liabilities | 21,804 | 0 |
Total current liabilities | 491,042 | 466,052 |
Noncurrent liabilities: | ||
Revolving credit facility | 129,000 | 0 |
Senior Notes, net of unamortized deferred financing costs | 2,451,886 | 2,448,439 |
Senior Convertible Notes, net of unamortized discount and deferred financing costs | 154,883 | 147,894 |
Asset retirement obligations | 95,806 | 91,859 |
Deferred income taxes | 217,469 | 223,278 |
Derivative liabilities | 6,014 | 12,496 |
Other noncurrent liabilities | 63,233 | 42,522 |
Total noncurrent liabilities | 3,118,291 | 2,966,488 |
Commitments and contingencies (note 6) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value - authorized: 200,000,000 shares; issued and outstanding: 112,857,163 and 112,241,966 shares, respectively | 1,129 | 1,122 |
Additional paid-in capital | 1,784,787 | 1,765,738 |
Retained earnings | 1,069,642 | 1,165,842 |
Accumulated other comprehensive loss | (11,808) | (12,380) |
Total stockholders' equity | 2,843,750 | 2,920,322 |
Total liabilities and stockholders’ equity | $ 6,453,083 | $ 6,352,862 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 112,857,163 | 112,241,966 |
Common Stock, Shares, Outstanding | 112,857,163 | 112,241,966 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating revenues and other income: | ||||
Oil, gas, and NGL production revenue | $ 389,419 | $ 458,382 | $ 1,136,749 | $ 1,243,826 |
Net gain on divestiture activity | 0 | 786 | 323 | 425,656 |
Other operating revenues | 898 | 201 | 1,347 | 3,398 |
Total operating revenues and other income | 390,317 | 459,369 | 1,138,419 | 1,672,880 |
Operating expenses: | ||||
Oil, gas, and NGL production expense | 129,042 | 127,638 | 373,397 | 365,917 |
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | 211,125 | 201,105 | 595,201 | 483,343 |
Exploration | 11,626 | 13,061 | 33,851 | 40,844 |
Abandonment and impairment of unproved properties | 6,337 | 9,055 | 25,092 | 26,615 |
General and administrative | 32,578 | 29,464 | 95,584 | 86,066 |
Net derivative (gain) loss | (100,889) | 178,026 | (3,463) | 249,304 |
Other operating expenses, net | 1,021 | 9,664 | 422 | 14,219 |
Total operating expenses | 290,840 | 568,013 | 1,120,084 | 1,266,308 |
Income (loss) from operations | 99,477 | (108,644) | 18,335 | 406,572 |
Interest expense | (40,584) | (38,111) | (118,191) | (122,850) |
Loss on extinguishment of debt | 0 | (26,722) | 0 | (26,722) |
Other non-operating income (expense), net | (548) | 806 | (1,427) | 3,017 |
Income (loss) before income taxes | 58,345 | (172,671) | (101,283) | 260,017 |
Income tax (expense) benefit | (16,111) | 36,748 | 16,337 | (61,342) |
Net income (loss) | $ 42,234 | $ (135,923) | $ (84,946) | $ 198,675 |
Basic weighted-average common shares outstanding | 112,804 | 112,107 | 112,441 | 111,836 |
Diluted weighted-average common shares outstanding | 113,334 | 112,107 | 112,441 | 113,600 |
Basic net income (loss) per common share | $ 0.37 | $ (1.21) | $ (0.76) | $ 1.78 |
Diluted net income (loss) per common share | 0.37 | (1.21) | (0.76) | 1.75 |
Dividends per common share | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (in thousands) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 42,234 | $ (135,923) | $ (84,946) | $ 198,675 |
Other comprehensive income, net of tax: | ||||
Pension liability adjustment | 190 | 263 | 572 | 721 |
Total other comprehensive income, net of tax | 190 | 263 | 572 | 721 |
Total comprehensive income (loss) | $ 42,424 | $ (135,660) | $ (84,374) | $ 199,396 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (in thousands, except share data and dividends per share) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Cash dividends declared per share | $ 0.05 | ||||
Balances, Common Stock, Shares, Outstanding, Beginning at Dec. 31, 2017 | 111,687,016 | ||||
Balances, Total Stockholders' Equity, Beginning at Dec. 31, 2017 | $ 2,394,608 | $ 1,117 | $ 1,741,623 | $ 665,657 | $ (13,789) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 317,401 | 317,401 | |||
Other comprehensive income | 260 | 260 | |||
Cash dividends declared, $0.05 per share | (5,584) | (5,584) | |||
Stock-based compensation expense (Amount) | 5,412 | 5,412 | |||
Other (AOCI) | 0 | 1 | (1) | ||
Balances, Common Stock, Shares, Outstanding, Ending at Mar. 31, 2018 | 111,687,016 | ||||
Balances, Total Stockholders' Equity, Ending at Mar. 31, 2018 | $ 2,712,097 | $ 1,117 | 1,747,035 | 980,444 | (16,499) |
Cash dividends declared per share | $ 0.10 | ||||
Balances, Common Stock, Shares, Outstanding, Beginning at Dec. 31, 2017 | 111,687,016 | ||||
Balances, Total Stockholders' Equity, Beginning at Dec. 31, 2017 | $ 2,394,608 | $ 1,117 | 1,741,623 | 665,657 | (13,789) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 198,675 | ||||
Other comprehensive income | 721 | ||||
Balances, Common Stock, Shares, Outstanding, Ending at Sep. 30, 2018 | 112,137,582 | ||||
Balances, Total Stockholders' Equity, Ending at Sep. 30, 2018 | 2,599,399 | $ 1,121 | 1,758,205 | 856,111 | (16,038) |
Increase (Decrease) in Stockholders' Equity | |||||
Cumulative effect of accounting change | 0 | 2,969 | (2,969) | ||
Balances, Common Stock, Shares, Outstanding, Beginning at Mar. 31, 2018 | 111,687,016 | ||||
Balances, Total Stockholders' Equity, Beginning at Mar. 31, 2018 | 2,712,097 | $ 1,117 | 1,747,035 | 980,444 | (16,499) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 17,197 | 17,197 | |||
Other comprehensive income | 198 | 198 | |||
Issuance of common stock under Employee Stock Purchase Plan (Shares) | 100,249 | ||||
Issuance of common stock under Employee Stock Purchase Plan (Amount) | 1,881 | $ 1 | 1,880 | ||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings (Shares) | 1,161 | ||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings (Amount) | (10) | $ 0 | (10) | ||
Stock-based compensation expense (Shares) | 58,572 | ||||
Stock-based compensation expense (Amount) | 5,264 | $ 0 | 5,264 | ||
Balances, Common Stock, Shares, Outstanding, Ending at Jun. 30, 2018 | 111,846,998 | ||||
Balances, Total Stockholders' Equity, Ending at Jun. 30, 2018 | $ 2,736,627 | $ 1,118 | 1,754,169 | 997,641 | (16,301) |
Cash dividends declared per share | $ 0.05 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | $ (135,923) | (135,923) | |||
Other comprehensive income | 263 | 263 | |||
Cash dividends declared, $0.05 per share | (5,607) | (5,607) | |||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings (Shares) | 290,584 | ||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings (Amount) | (2,965) | $ 3 | (2,968) | ||
Stock-based compensation expense (Amount) | 7,004 | 7,004 | |||
Balances, Common Stock, Shares, Outstanding, Ending at Sep. 30, 2018 | 112,137,582 | ||||
Balances, Total Stockholders' Equity, Ending at Sep. 30, 2018 | $ 2,599,399 | $ 1,121 | 1,758,205 | 856,111 | (16,038) |
Cash dividends declared per share | $ 0.05 | ||||
Balances, Common Stock, Shares, Outstanding, Beginning at Dec. 31, 2018 | 112,241,966 | 112,241,966 | |||
Balances, Total Stockholders' Equity, Beginning at Dec. 31, 2018 | $ 2,920,322 | $ 1,122 | 1,765,738 | 1,165,842 | (12,380) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (177,568) | (177,568) | |||
Other comprehensive income | 263 | 263 | |||
Cash dividends declared, $0.05 per share | (5,612) | (5,612) | |||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings (Shares) | 2,579 | ||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings (Amount) | (18) | $ 0 | (18) | ||
Stock-based compensation expense (Amount) | 5,838 | 5,838 | |||
Balances, Common Stock, Shares, Outstanding, Ending at Mar. 31, 2019 | 112,244,545 | ||||
Balances, Total Stockholders' Equity, Ending at Mar. 31, 2019 | $ 2,743,225 | $ 1,122 | 1,771,558 | 982,662 | (12,117) |
Cash dividends declared per share | $ 0.10 | ||||
Balances, Common Stock, Shares, Outstanding, Beginning at Dec. 31, 2018 | 112,241,966 | 112,241,966 | |||
Balances, Total Stockholders' Equity, Beginning at Dec. 31, 2018 | $ 2,920,322 | $ 1,122 | 1,765,738 | 1,165,842 | (12,380) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (84,946) | ||||
Other comprehensive income | $ 572 | ||||
Balances, Common Stock, Shares, Outstanding, Ending at Sep. 30, 2019 | 112,857,163 | 112,857,163 | |||
Balances, Total Stockholders' Equity, Ending at Sep. 30, 2019 | $ 2,843,750 | $ 1,129 | 1,784,787 | 1,069,642 | (11,808) |
Balances, Common Stock, Shares, Outstanding, Beginning at Mar. 31, 2019 | 112,244,545 | ||||
Balances, Total Stockholders' Equity, Beginning at Mar. 31, 2019 | 2,743,225 | $ 1,122 | 1,771,558 | 982,662 | (12,117) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 50,388 | 50,388 | |||
Other comprehensive income | 119 | 119 | |||
Issuance of common stock under Employee Stock Purchase Plan (Shares) | 184,079 | ||||
Issuance of common stock under Employee Stock Purchase Plan (Amount) | 1,959 | $ 2 | 1,957 | ||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings (Shares) | 290 | ||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings (Amount) | (2) | $ 0 | (2) | ||
Stock-based compensation expense (Shares) | 96,719 | ||||
Stock-based compensation expense (Amount) | 6,154 | $ 1 | 6,153 | ||
Other (APIC) | 0 | (1) | 1 | ||
Balances, Common Stock, Shares, Outstanding, Ending at Jun. 30, 2019 | 112,525,633 | ||||
Balances, Total Stockholders' Equity, Ending at Jun. 30, 2019 | $ 2,801,843 | $ 1,125 | 1,779,665 | 1,033,051 | (11,998) |
Cash dividends declared per share | $ 0.05 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | $ 42,234 | 42,234 | |||
Other comprehensive income | 190 | 190 | |||
Cash dividends declared, $0.05 per share | (5,643) | (5,643) | |||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings (Shares) | 331,530 | ||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings (Amount) | (1,640) | $ 4 | (1,644) | ||
Stock-based compensation expense (Amount) | $ 6,766 | 6,766 | |||
Balances, Common Stock, Shares, Outstanding, Ending at Sep. 30, 2019 | 112,857,163 | 112,857,163 | |||
Balances, Total Stockholders' Equity, Ending at Sep. 30, 2019 | $ 2,843,750 | $ 1,129 | $ 1,784,787 | $ 1,069,642 | $ (11,808) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |||
Cash flows from operating activities: | |||||||||
Net income (loss) | $ 42,234 | $ (177,568) | $ (135,923) | $ 317,401 | $ (84,946) | $ 198,675 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||
Net gain on divestiture activity | 0 | (786) | (323) | (425,656) | |||||
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | 211,125 | 201,105 | 595,201 | 483,343 | |||||
Abandonment and impairment of unproved properties | 6,337 | 9,055 | 25,092 | 26,615 | |||||
Stock-based compensation expense | 18,758 | 17,680 | |||||||
Net derivative (gain) loss | (100,889) | 178,026 | (3,463) | 249,304 | |||||
Derivative settlement gain (loss) | 23,843 | (101,911) | |||||||
Amortization of debt discount and deferred financing costs | 11,554 | 11,542 | |||||||
Loss on extinguishment of debt | 0 | 26,722 | 0 | 26,722 | |||||
Deferred income taxes | 19,617 | (36,833) | (13,620) | 60,672 | |||||
Other, net | (2,291) | (2,084) | |||||||
Net change in working capital | 11,781 | (3,725) | |||||||
Net cash provided by operating activities | 581,586 | 541,177 | |||||||
Cash flows from investing activities: | |||||||||
Net proceeds from the sale of oil and gas properties | 12,520 | [1] | 743,199 | ||||||
Capital expenditures | (788,642) | (1,032,588) | |||||||
Acquisition of proved and unproved oil and gas properties | (2,581) | (24,571) | |||||||
Net cash used in investing activities | (778,703) | (313,960) | |||||||
Cash flows from financing activities: | |||||||||
Proceeds from credit facility | 1,124,500 | 0 | |||||||
Repayment of credit facility | (995,500) | 0 | |||||||
Net proceeds from Senior Notes | 0 | 492,079 | |||||||
Cash paid to repurchase Senior Notes, including premium | 0 | (844,984) | |||||||
Net proceeds from sale of common stock | 1,959 | 1,881 | |||||||
Dividends paid | (5,612) | (5,584) | |||||||
Other, net | (2,684) | (7,746) | |||||||
Net cash provided by (used in) financing activities | 122,663 | (364,354) | |||||||
Net change in cash, cash equivalents, and restricted cash | (74,454) | (137,137) | |||||||
Cash, cash equivalents, and restricted cash at beginning of period | $ 77,965 | $ 313,943 | 77,965 | 313,943 | $ 313,943 | ||||
Cash, cash equivalents, and restricted cash at end of period | 3,511 | 176,806 | 3,511 | 176,806 | 77,965 | ||||
Supplemental Cash Flow Information - Operating activities: | |||||||||
Cash paid for interest, net of capitalized interest | (113,122) | (124,435) | |||||||
Net cash paid for income taxes | (1,469) | (9,085) | |||||||
Supplemental Cash Flow Information - Investing activities: | |||||||||
Changes in capital expenditure accruals and other | 34,878 | 19,811 | |||||||
Supplemental Cash Flow Information - non-cash investing activities: | |||||||||
Carrying value of properties exchanged | 70,808 | 95,121 | |||||||
Supplemental Cash Flow Information - non-cash financing activities: | |||||||||
Non-cash loss on extinguishment of debt, net | 0 | 6,334 | |||||||
Reconciliation of cash, cash equivalents, and restricted cash: | |||||||||
Cash and cash equivalents | 10 | 176,806 | 10 | 176,806 | $ 77,965 | ||||
Restricted cash | $ 3,501 | [1] | $ 0 | $ 3,501 | [1] | $ 0 | |||
[1] | (1) As of September 30, 2019, a portion of net proceeds from the sale of oil and gas properties was restricted for future property acquisitions. Restricted cash is included in the other noncurrent assets line item on the accompanying unaudited condensed consolidated balance sheets (“accompanying balance sheets”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies Description of Operations SM Energy Company, together with its consolidated subsidiaries (“SM Energy” or the “Company”), is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids (also respectively referred to as “oil,” “gas,” and “NGLs” throughout this report) in onshore North America. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Quarterly Report on Form 10-Q, and Regulation S-X. These financial statements do not include all information and notes required by GAAP for annual financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “ 2018 Form 10-K”). In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation of interim financial information, have been included. Operating results for the periods presented are not necessarily indicative of expected results for the full year. In connection with the preparation of the Company’s unaudited condensed consolidated financial statements, the Company evaluated events subsequent to the balance sheet date of September 30, 2019 , and through the filing of this report. Significant Accounting Policies The significant accounting policies followed by the Company are set forth in Note 1 - Summary of Significant Accounting Policies in the 2018 Form 10-K and are supplemented by the notes to the unaudited condensed consolidated financial statements included in this report. These unaudited condensed consolidated financial statements should be read in conjunction with the 2018 Form 10-K. Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), followed by other related ASUs that provided targeted improvements and additional practical expedient options (collectively “ASU 2016-02” or “Topic 842”). The Company adopted ASU 2016-02 on January 1, 2019, using the modified retrospective method. The Company elected as part of its adoption to also use the optional transition methodology whereby lease accounting for previously reported periods continues to be reported in accordance with historical accounting guidance for leases in effect for those prior periods. Policy elections and practical expedients the Company has implemented in connection with the adoption of ASU 2016-02 include (a) excluding from the balance sheet leases with terms that are less than one year, (b) for agreements that contain both lease and non-lease components, combining these components together and accounting for them as a single lease, (c) the package of practical expedients, which among other requirements, allows the Company to avoid reassessing contracts that commenced prior to adoption that were properly evaluated under legacy GAAP, and (d) excluding land easements that existed or expired before adoption of ASU 2016-02. The scope of ASU 2016-02 does not apply to leases used in the exploration or use of minerals, oil, natural gas, or other similar non-regenerative resources. Upon adoption on January 1, 2019, the Company recognized approximately $50.0 million in right-of-use (“ROU”) assets and related lease liabilities for its operating leases. There was no cumulative effect to retained earnings upon the adoption of this guidance. Please refer to Note 12 - Leases for additional discussion. Other than as disclosed in the 2018 Form 10-K, there are no ASUs that would have a material effect on the Company’s unaudited condensed consolidated financial statements and related disclosures that have been issued but not yet adopted by the Company as of September 30, 2019 , and through the filing of this report. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 2 - Revenue from Contracts with Customers The Company recognizes its share of revenue from the sale of produced oil, gas, and NGLs from its Midland Basin and South Texas assets. Following the divestiture of the Company’s remaining assets in the Rocky Mountain region during the first half of 2018, there has been no production revenue from this region after the second quarter of 2018. Oil, gas, and NGL production revenue presented within the accompanying unaudited condensed consolidated statements of operations (“accompanying statements of operations”) is reflective of the revenue generated from contracts with customers. The tables below present oil, gas, and NGL production revenue by product type for each of the Company’s operating regions for the three and nine months ended September 30, 2019 , and 2018 : Midland Basin South Texas Total Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2019 2018 2019 2018 2019 2018 (in thousands) Oil production revenue $ 277,361 $ 270,086 $ 15,496 $ 17,436 $ 292,857 $ 287,522 Gas production revenue 17,780 40,364 46,267 56,446 64,047 96,810 NGL production revenue 124 563 32,391 73,487 32,515 74,050 Total $ 295,265 $ 311,013 $ 94,154 $ 147,369 $ 389,419 $ 458,382 Relative percentage 76 % 68 % 24 % 32 % 100 % 100 % ____________________________________________ Note: Amounts may not calculate due to rounding. Midland Basin South Texas Rocky Mountain Total Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 2019 2018 2019 2018 (in thousands) Oil production revenue $ 791,055 $ 703,516 $ 45,007 $ 56,365 $ — $ 54,851 $ 836,062 $ 814,732 Gas production revenue 49,821 96,974 144,563 161,414 — 1,595 194,384 259,983 NGL production revenue 102 816 106,201 167,505 — 790 106,303 169,111 Total $ 840,978 $ 801,306 $ 295,771 $ 385,284 $ — $ 57,236 $ 1,136,749 $ 1,243,826 Relative percentage 74 % 64 % 26 % 31 % — % 5 % 100 % 100 % ____________________________________________ Note: Amounts may not calculate due to rounding. The Company recognizes oil, gas, and NGL production revenue at the point in time when custody and title (“control”) of the product transfers to the purchaser, which may differ depending on the applicable contractual terms. Transfer of control drives the presentation of transportation, gathering, processing, and other post-production expenses (“fees and other deductions”) within the accompanying statements of operations. Fees and other deductions incurred prior to control transfer are recorded within the oil, gas, and NGL production expense line item on the accompanying statements of operations, while fees and other deductions incurred subsequent to control transfer are embedded in the price and effectively recorded as a reduction of oil, gas, and NGL production revenue. Please refer to Note 2 - Revenue from Contracts with Customers in the 2018 Form 10-K for more information regarding the types of contracts under which oil, gas, and NGL production revenue is generated. Significant judgments made in applying the guidance in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers relate to the point in time when control transfers to purchasers in gas processing arrangements with midstream processors. The Company does not believe that significant judgments are required with respect to the determination of the transaction price, including amounts that represent variable consideration, as volume and price carry a low level of estimation uncertainty given the precision of volumetric measurements and the use of index pricing with generally predictable differentials. Accordingly, the Company does not consider estimates of variable consideration to be constrained. The Company’s performance obligations arise upon the production of hydrocarbons from wells in which the Company has an ownership interest. The performance obligations are considered satisfied upon control transferring to a purchaser at the wellhead, inlet, or tailgate of the midstream processor’s processing facility, or other contractually specified delivery point. The time period between production and satisfaction of performance obligations is generally less than one day; thus, there are no material unsatisfied or partially unsatisfied performance obligations at the end of the reporting period. Revenue is recorded in the month when performance obligations are satisfied. However, settlement statements from the purchasers of hydrocarbons and the related cash consideration are received 30 to 90 days after production has occurred. As a result, the Company must estimate the amount of production delivered to the customer and the consideration that will ultimately be received for sale of the product. Estimated revenue due to the Company is recorded within the accounts receivable line item on the accompanying balance sheets until payment is received. The accounts receivable balances from contracts with customers within the accompanying balance sheets as of September 30, 2019 , and December 31, 2018 , were $106.3 million and $107.2 million , respectively. To estimate accounts receivable from contracts with customers, the Company uses knowledge of its properties, historical performance, contractual arrangements, index pricing, quality and transportation differentials, and other factors as the basis for these estimates. Differences between estimates and actual amounts received for product sales are recorded in the month that payment is received from the purchaser. Revenue recognized that related to performance obligations satisfied in prior reporting periods was immaterial for the three and nine months ended September 30, 2019 , and 2018 . |
Divestitures, Assets Held for S
Divestitures, Assets Held for Sale, and Acquisitions | 9 Months Ended |
Sep. 30, 2019 | |
Divestitures, Assets Held for Sale, and Acquisitions [Abstract] | |
Divestitures, Assets Held for Sale, and Acquisitions | Note 3 - Divestitures, Assets Held for Sale, and Acquisitions Divestitures No material divestitures occurred during the first nine months of 2019 , and there were no assets classified as held for sale as of September 30, 2019 . On March 26, 2018 , the Company divested approximately 112,000 net acres of its Powder River Basin assets (the “PRB Divestiture”) for total cash received at closing, net of costs (referred to throughout this report as “net divestiture proceeds”), of $490.8 million , subject to final purchase price adjustments, and recorded an estimated net gain of $410.6 million for the nine months ended September 30, 2018 . After final purchase price adjustments, the Company received net divestiture proceeds of $492.2 million , and recorded a final net gain of $410.6 million related to these divested assets for the year ended December 31, 2018 . During the second quarter of 2018, the Company completed the divestitures of its remaining Williston Basin assets located in Divide County, North Dakota (the “Divide County Divestiture”) and its Halff East assets in the Midland Basin (the “Halff East Divestiture”), for combined net divestiture proceeds of $250.8 million , subject to final purchase price adjustments, and recorded a combined estimated net gain of $15.4 million for the nine months ended September 30, 2018 . After final purchase price adjustments, the Company received net divestiture proceeds of $252.2 million , and recorded a final net gain of $15.4 million related to these divested assets for the year ended December 31, 2018 . Acquisitions During the first nine months of 2019, the Company completed several non-monetary acreage trades of undeveloped properties located in Howard, Martin, and Midland Counties, Texas, resulting in the exchange of approximately 2,100 net acres, with $70.8 million of carrying value attributed to the properties transferred by the Company. These trades were recorded at carryover basis with no gain or loss recognized. During the third quarter of 2018, the Company completed two non-monetary acreage trades of primarily undeveloped properties located in Howard and Martin Counties, Texas, which resulted in the exchange of approximately 2,650 net acres, with $95.1 million of carrying value attributed to the properties transferred by the Company. These trades were recorded at carryover basis with no gain or loss recognized. During the second quarter of 2018, the Company acquired approximately 720 net acres of unproved properties in Martin County, Texas, for $24.6 million . Under authoritative accounting guidance, this transaction was considered an asset acquisition. Therefore, the properties were recorded based on the fair value of the total consideration transferred on the acquisition date and the transaction costs were capitalized as a component of the cost of the assets acquired. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4 - Income Taxes Recorded income tax expense or benefit differs from the amounts that would be provided by applying the statutory United States federal income tax rate to income or loss before income taxes. These differences primarily relate to the effect of state income taxes, excess tax benefits and deficiencies from stock-based compensation awards, tax limitations on the compensation of certain covered individuals, changes in valuation allowances, and the cumulative impact of other smaller permanent differences. The quarterly rate can also be affected by the proportional impacts of forecasted net income or loss for each period presented, as reflected in the table below. The provision for income taxes for the three and nine months ended September 30, 2019 , and 2018 , consisted of the following: For the Three Months Ended For the Nine Months Ended 2019 2018 2019 2018 (in thousands) Current portion of income tax (expense) benefit: Federal $ 3,826 $ — $ 3,826 $ — State (320 ) (85 ) (1,109 ) (670 ) Deferred portion of income tax (expense) benefit (19,617 ) 36,833 13,620 (60,672 ) Income tax (expense) benefit $ (16,111 ) $ 36,748 $ 16,337 $ (61,342 ) Effective tax rate 27.6 % 21.3 % 16.1 % 23.6 % The change in the effective tax rate for the three months ended September 30, 2019, compared with the same period in 2018, was primarily due to the differing effects of permanent items on income before income taxes for the three months ended September 30, 2019, compared to their impact on the loss before income taxes for the same period in 2018. The change in the effective tax rate for the nine months ended September 30, 2019, compared with the same period in 2018, was primarily due to the differing effects of permanent items on the loss before income taxes for the nine months ended September 30, 2019, compared to their impact on income before income taxes for the same period in 2018. Additionally, the year-to-date 2018 rate was also impacted by the estimated highest marginal state tax rates due to changes in the composition of income or loss from Company activities, including divestitures, among multiple state tax jurisdictions. Future periods are not expected to reflect these differences as the Company’s current activities are occurring predominately in Texas. Subsequent to September 30, 2019 , the Company filed its 2018 federal income tax return claiming a $7.7 million refund for a portion of its deferred AMT credit carryover. For all years before 2015, the Company is generally no longer subject to United States federal or state income tax examinations by tax authorities. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 5 - Long-Term Debt Credit Agreement On September 19, 2019, the Company and its lenders entered into the Second Amendment to the Sixth Amended and Restated Credit Agreement which permitted the Company to enter into swap agreements with respect to the price of electricity in order to minimize exposure to electrical price volatility. As of September 30, 2019 , the Company’s Sixth Amended and Restated Credit Agreement, as amended (the “Credit Agreement”), provided for a senior secured revolving credit facility with a maximum loan amount of $2.5 billion , a borrowing base of $1.6 billion , and aggregate lender commitments of $1.2 billion . Subsequent to September 30, 2019, the Company and its lenders completed the semi-annual borrowing base redetermination, which reaffirmed the Company’s borrowing base and aggregate lender commitments at existing levels. The next scheduled borrowing base redetermination date is April 1, 2020 . The Credit Agreement is scheduled to mature on September 28, 2023 . The maturity date could, however, occur earlier on August 16, 2022 , if the Company has not completed certain repurchase, redemption, or refinancing activities associated with its 6.125% Senior Notes due 2022 (“2022 Senior Notes”), as outlined in the Credit Agreement. The Company must comply with certain financial and non-financial covenants under the terms of the Credit Agreement and was in compliance with all such covenants as of September 30, 2019 , and through the filing of this report. Please refer to Note 5 - Long-Term Debt in the 2018 Form 10-K for additional detail on the terms of the Company’s Credit Agreement. Interest and commitment fees associated with the credit facility are accrued based on a borrowing base utilization grid set forth in the Credit Agreement as presented in Note 5 - Long-Term Debt in the Company’s 2018 Form 10-K. At the Company’s election, borrowings under the Credit Agreement may be in the form of Eurodollar, Alternate Base Rate (“ABR”), or Swingline loans. Eurodollar loans accrue interest at the London Interbank Offered Rate, plus the applicable margin from the utilization grid, and ABR and Swingline loans accrue interest at a market-based floating rate, plus the applicable margin from the utilization grid. Commitment fees are accrued on the unused portion of the aggregate lender commitment amount at rates from the utilization grid and are included in the interest expense line item on the accompanying statements of operations. The following table presents the outstanding balance, total amount of letters of credit outstanding, and available borrowing capacity under the Credit Agreement as of October 24, 2019 , September 30, 2019 , and December 31, 2018 : As of October 24, 2019 As of September 30, 2019 As of December 31, 2018 (in thousands) Revolving credit facility (1) $ 143,000 $ 129,000 $ — Letters of credit (2) — — 200 Available borrowing capacity 1,057,000 1,071,000 999,800 Total aggregate lender commitment amount $ 1,200,000 $ 1,200,000 $ 1,000,000 ____________________________________________ (1) Unamortized deferred financing costs attributable to the credit facility are presented as a component of the other noncurrent assets line item on the accompanying balance sheets and totaled $6.3 million and $6.4 million as of September 30, 2019 , and December 31, 2018 , respectively. These costs are being amortized over the term of the credit facility on a straight-line basis. (2) Letters of credit outstanding reduce the amount available under the credit facility on a dollar-for-dollar basis. The letter of credit outstanding as of December 31, 2018 , was released during the three months ended March 31, 2019 . Senior Notes As of September 30, 2019 , the Company’s senior notes consisted of 6.125% Senior Notes due 2022, 5.0% Senior Notes due 2024, 5.625% Senior Notes due 2025, 6.75% Senior Notes due 2026, and 6.625% Senior Notes due 2027 (“2027 Senior Notes”, and all senior notes collectively referred to as the “Senior Notes”). The Senior Notes, net of unamortized deferred financing costs line item on the accompanying balance sheets as of September 30, 2019 , and December 31, 2018 , consisted of the following: As of September 30, 2019 As of December 31, 2018 Principal Amount Unamortized Deferred Financing Costs Principal Amount, Net of Unamortized Deferred Financing Costs Principal Amount Unamortized Deferred Financing Costs Principal Amount, Net of Unamortized Deferred Financing Costs (in thousands) 6.125% Senior Notes due 2022 $ 476,796 $ 3,170 $ 473,626 $ 476,796 $ 3,921 $ 472,875 5.0% Senior Notes due 2024 500,000 3,996 496,004 500,000 4,688 495,312 5.625% Senior Notes due 2025 500,000 5,130 494,870 500,000 5,808 494,192 6.75% Senior Notes due 2026 500,000 5,780 494,220 500,000 6,407 493,593 6.625% Senior Notes due 2027 500,000 6,834 493,166 500,000 7,533 492,467 Total $ 2,476,796 $ 24,910 $ 2,451,886 $ 2,476,796 $ 28,357 $ 2,448,439 The Senior Notes are unsecured senior obligations and rank equal in right of payment with all of the Company’s existing and any future unsecured senior debt and are senior in right of payment to any future subordinated debt. There are no subsidiary guarantors of the Senior Notes. The Company is subject to certain covenants under the indentures governing the Senior Notes and was in compliance with all such covenants as of September 30, 2019 , and through the filing of this report. The Company may redeem some or all of its Senior Notes prior to their maturity at redemption prices based on a premium, plus accrued and unpaid interest as described in the indentures governing the Senior Notes. On July 16, 2018, the Company redeemed its 6.50% Senior Notes due 2021 (“2021 Senior Notes”) which resulted in the payment of total cash consideration, including accrued interest, of $355.9 million . On August 20, 2018, the Company issued $500.0 million in aggregate principal amount of 2027 Senior Notes, which resulted in the receipt of net proceeds of $492.1 million after deducting fees of $7.9 million , which are being amortized as deferred financing costs over the life of the 2027 Senior Notes. The proceeds received from the issuance of the 2027 Senior Notes were used to fund the cash tender offer and redemption of all of the Company’s 6.50% Senior Notes due 2023 (“2023 Senior Notes”) and a portion of its 2022 Senior Notes during the third quarter of 2018. The Company paid total consideration, including accrued interest, of $497.8 million to complete these transactions. As a result of the redemption of the 2021 Senior Notes, and the cash tender offer and redemption of all of the 2023 Senior Notes and a portion of the 2022 Senior Notes, the Company recorded a combined loss on extinguishment of debt of $26.7 million for the quarter ended September 30, 2018. This amount included combined premiums paid of $20.4 million and $6.3 million of accelerated unamortized deferred financing costs for the redemption. Please refer to Note 5 - Long-Term Debt in Part II, Item 8 of our 2018 Form 10-K for additional discussion. Senior Convertible Notes The Company’s senior convertible notes consist of $172.5 million in aggregate principal amount of 1.50% Senior Convertible Notes due July 1, 2021 (the “Senior Convertible Notes”). The Senior Convertible Notes are unsecured senior obligations and rank equal in right of payment with all of the Company’s existing and any future unsecured senior debt and are senior in right of payment to any future subordinated debt. Please refer to Note 5 - Long-Term Debt in the 2018 Form 10-K for additional detail on the Company’s Senior Convertible Notes and associated capped call transactions. The Senior Convertible Notes were not convertible at the option of holders as of September 30, 2019 , or through the filing of this report. Notwithstanding the inability to convert, the if-converted value of the Senior Convertible Notes as of September 30, 2019 , did not exceed the principal amount. The debt discount and debt-related issuance costs are amortized to the principal value of the Senior Convertible Notes as interest expense through the maturity date of July 1, 2021 . Interest expense recognized on the Senior Convertible Notes related to the stated interest rate and amortization of the debt discount totaled $2.8 million and $2.6 million for the three months ended September 30, 2019 , and 2018 , respectively, and totaled $8.2 million and $7.8 million for the nine months ended September 30, 2019 , and 2018 , respectively. There have been no changes to the initial net carrying amount of the equity component of the Senior Convertible Notes recorded in additional paid-in capital on the accompanying balance sheets since issuance. The Senior Convertible Notes, net of unamortized discount and deferred financing costs line on the accompanying balance sheets as of September 30, 2019 , and December 31, 2018 , consisted of the following: As of September 30, 2019 As of December 31, 2018 (in thousands) Principal amount of Senior Convertible Notes $ 172,500 $ 172,500 Unamortized debt discount (16,012 ) (22,313 ) Unamortized deferred financing costs (1,605 ) (2,293 ) Senior Convertible Notes, net of unamortized discount and deferred financing costs $ 154,883 $ 147,894 The Company is subject to certain covenants under the indenture governing the Senior Convertible Notes and was in compliance with all such covenants as of September 30, 2019 , and through the filing of this report. Capitalized Interest Capitalized interest costs for the three months ended September 30, 2019 , and 2018 , were $4.2 million and $5.2 million , respectively, and for the nine months ended September 30, 2019 , and 2018 , were $14.1 million and $15.7 million , respectively. The amount of interest the Company capitalizes generally fluctuates based on the amount borrowed, the Company’s capital program, and the timing and amount of costs associated with capital projects that are considered in progress. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6 - Commitments and Contingencies Commitments Other than those items discussed below, there have been no changes in commitments through the filing of this report that differ materially from those disclosed in the 2018 Form 10-K. Please refer to Note 6 - Commitments and Contingencies in the 2018 Form 10-K for additional discussion of the Company’s commitments. Delivery and Purchase Commitments. During the second quarter of 2019, the Company executed an amendment to its existing sand sourcing agreement that created certain commitments and potential penalties that vary based on the amount of sand the Company uses in well completions occurring in a particular area. This amended sand sourcing agreement expires on December 31, 2023. As of September 30, 2019 , potential penalties under this sand sourcing agreement range from zero to a maximum of $10.0 million . The Company does not expect to incur material penalties with regard to this agreement. Drilling Rig and Completion Service Contracts. The Company entered into new and amended drilling rig and well completion service contracts during the nine months ended September 30, 2019 . As of September 30, 2019 , the Company’s drilling rig and completion service contract commitments totaled $57.1 million . If all of these contracts were terminated as of September 30, 2019 , the Company would avoid a portion of the contractual service commitments; however, the Company would be required to pay $38.1 million in early termination fees. Excluded from these amounts are variable commitments and potential penalties determined by the number of completion crews the Company has in operation in a particular area under a completion service arrangement. As of September 30, 2019 , potential penalties under this completion service arrangement, which expires on December 31, 2023, range from zero to a maximum of $14.3 million . The Company does not expect to incur material penalties with regard to its drilling rig and completion service contracts. Electrical Power Purchase Contracts. During the second quarter of 2019, the Company entered into a fixed price contract for the purchase of electrical power that increased the purchase commitment under an existing agreement. As of September 30, 2019 , the Company had a commitment to purchase electrical power through 2027 with a total remaining obligation of $55.1 million . As of the filing of this report, the Company expects to meet this commitment. Contingencies The Company is subject to litigation and claims arising in the ordinary course of business. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. In the opinion of management, the anticipated results of any pending litigation and claims are not expected to have a material effect on the results of operations, the financial position, or the cash flows of the Company. |
Compensation Plans
Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Compensation Plans | Note 7 - Compensation Plans Equity Incentive Compensation Plan As of September 30, 2019 , 4.1 million shares of common stock were available for grant under the Company’s Equity Incentive Compensation Plan (“Equity Plan”). Performance Share Units The Company grants performance share units (“PSUs”) to eligible employees as part of its long-term equity incentive compensation program. The number of shares of the Company’s common stock issued to settle PSUs ranges from zero to two times the number of PSUs awarded and is determined based on certain settlement criteria over a three -year performance period. PSUs generally vest on the third anniversary of the date of the grant or upon other triggering events as set forth in the Equity Plan. For PSUs that were granted in 2016 and 2017, the settlement criteria included a combination of the Company’s Total Shareholder Return (“TSR”) on an absolute basis, and the Company’s TSR relative to the TSR of certain peer companies over the associated three -year performance period. The fair value of the PSUs granted in 2016 and 2017 was measured on the applicable grant dates using a stochastic Monte Carlo simulation using geometric Brownian motion (“GBM Model”). As these awards depend entirely on market-based settlement criteria, the associated compensation expense is recognized on a straight-line basis within general and administrative expense and exploration expense over the vesting periods of the respective awards. For PSUs granted in 2018 and 2019, the settlement criteria included a combination of the Company’s TSR relative to the TSR of certain peer companies, and the Company’s cash return on total capital invested (“CRTCI”) relative to the CRTCI of certain peer companies over the associated three -year performance period. The fair value of the PSUs granted in 2018 and 2019 was measured on the applicable grant dates using the GBM Model, with the assumption that the associated CRTCI performance condition will be met at the target amount at the end of the respective performance periods. Compensation expense for PSUs granted in 2018 and 2019 is recognized within general and administrative expense and exploration expense over the vesting periods of the respective awards. As these awards depend on a combination of performance-based settlement criteria and market-based settlement criteria, compensation expense may be adjusted in future periods as the number of units expected to vest increases or decreases based on the Company’s expected CRTCI performance relative to the applicable peer companies. Total compensation expense recorded for PSUs was $2.9 million and $3.0 million for the three months ended September 30, 2019 , and 2018 , respectively, and was $8.6 million and $7.7 million for the nine months ended September 30, 2019 , and 2018 , respectively. As of September 30, 2019 , there was $19.7 million of total unrecognized compensation expense related to non-vested PSU awards, which is being amortized through 2022. A summary of the status and activity of non-vested PSUs for the nine months ended September 30, 2019 , is presented in the following table: PSUs (1) Weighted-Average Grant-Date Fair Value Non-vested at beginning of year 1,711,259 $ 20.68 Granted 793,125 $ 12.80 Vested (346,021 ) $ 26.31 Forfeited (40,999 ) $ 17.96 Non-vested at end of quarter 2,117,364 $ 16.86 ____________________________________________ (1) The number of awards assumes a multiplier of one . The final number of shares of common stock issued may vary depending on the three -year performance multiplier which ranges from zero to two . During the nine months ended September 30, 2019 , the Company issued 793,125 PSUs with a grant date fair value of $10.2 million . In addition to the settlement criteria described above, the 2019 Performance Share Unit Award Agreement also stipulates that if either the Company’s absolute TSR, or absolute CRTCI, is negative over the three -year performance period, the maximum number of shares of common stock that can be issued to settle outstanding PSUs shall be capped at one times the number of PSUs granted on the award date, regardless of the Company’s TSR and CRTCI performance relative to the peer group. During the nine months ended September 30, 2019 , the Company settled PSUs that were granted in 2016, with no shares issued upon settlement because the grant settled at a zero multiplier. Employee Restricted Stock Units The Company grants restricted stock units (“RSUs”) to eligible persons as part of its long-term equity incentive compensation program. Each RSU represents a right to receive one share of the Company’s common stock upon settlement of the award at the end of the specified vesting period. Compensation expense for RSUs is recognized within general and administrative expense and exploration expense over the vesting periods of the respective awards. RSUs granted to employees generally vest one-third on each anniversary date of the grant over a three -year vesting period or upon other triggering events as set forth in the Equity Plan. Total compensation expense recorded for employee RSUs was $2.9 million and $3.0 million for the three months ended September 30, 2019 , and 2018 , respectively, and was $8.4 million and $8.0 million for the nine months ended September 30, 2019 , and 2018 , respectively. As of September 30, 2019 , there was $21.4 million of total unrecognized compensation expense related to non-vested RSU awards, which is being amortized through 2022. A summary of the status and activity of non-vested RSUs granted to employees for the nine months ended September 30, 2019 , is presented in the following table: RSUs Weighted-Average Grant-Date Fair Value Non-vested at beginning of year 1,243,163 $ 21.50 Granted 978,932 $ 12.36 Vested (466,535 ) $ 21.93 Forfeited (111,188 ) $ 19.94 Non-vested at end of quarter 1,644,372 $ 16.04 During the nine months ended September 30, 2019 , the Company granted 978,932 RSUs with a grant date fair value of $12.1 million . Also, during the nine months ended September 30, 2019 , the Company settled 466,535 RSUs that related to awards granted in previous years. The Company and the majority of grant participants mutually agreed to net share settle a portion of the awards to cover income and payroll tax withholdings, as provided for in the Equity Plan and award agreements. As a result, the Company issued 334,399 net shares of common stock upon settlement of the awards. Director Shares During the second quarters of 2019 , and 2018 , the Company issued 96,719 and 58,572 shares, respectively, of its common stock to its non-employee directors under the Equity Plan. Shares issued during the second quarter of 2019 will fully vest on December 31, 2019. Shares issued during the second quarter of 2018 fully vested on December 31, 2018. The Company did not issue any director shares during the third quarters of 2019 , or 2018 . Employee Stock Purchase Plan Under the Company’s Employee Stock Purchase Plan (“ESPP”), eligible employees may purchase shares of the Company’s common stock through payroll deductions of up to 15 percent of eligible compensation, without accruing in excess of $25,000 in value from purchases for each calendar year. The purchase price of the stock is 85 percent of the lower of the fair market value of the stock on either the first or last day of the purchase period. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code. There were 184,079 and 100,249 shares issued under the ESPP during the nine months ended September 30, 2019 , and 2018 , respectively. Total proceeds to the Company for the issuance of these shares was $2.0 million and $1.9 million for the nine months ended September 30, 2019 , and 2018 , respectively. The fair value of ESPP grants is measured at the date of grant using the Black-Scholes option-pricing model. |
Pension Benefits
Pension Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Pension Benefits | Note 8 - Pension Benefits Pension Plans The Company has a non-contributory defined benefit pension plan covering employees who meet age and service requirements and who began employment with the Company prior to January 1, 2016 (the “Qualified Pension Plan”). The Company also has a supplemental non-contributory pension plan covering certain management employees (the “Nonqualified Pension Plan” and together with the Qualified Pension Plan, the “Pension Plans”). The Company froze the Pension Plans to new participants, effective as of January 1, 2016. Employees participating in the Pension Plans prior to the plans being frozen will continue to earn benefits. Components of Net Periodic Benefit Cost for the Pension Plans For the Three Months Ended For the Nine Months Ended 2019 2018 2019 2018 (in thousands) Components of net periodic benefit cost: Service cost $ 1,395 $ 1,683 $ 4,186 $ 5,048 Interest cost 699 657 2,094 1,967 Expected return on plan assets that reduces periodic pension benefit cost (393 ) (466 ) (1,180 ) (1,397 ) Amortization of prior service cost 4 4 13 13 Amortization of net actuarial loss 239 331 718 995 Net periodic benefit cost $ 1,944 $ 2,209 $ 5,831 $ 6,626 Prior service costs are amortized on a straight-line basis over the average remaining service period of active participants. Gains and losses in excess of 10 percent of the greater of the benefit obligation or the market-related value of assets are amortized over the average remaining service period of active participants. The service cost component of net periodic benefit cost for the Pension Plans is presented as an operating expense within the general and administrative and exploration expense line items on the accompanying statements of operations while the other components of net periodic benefit cost for the Pension Plans are presented as non-operating expenses within the other non-operating income (expense), net line item on the accompanying statements of operations. Contributions As of the filing of this report, the Company has contributed $7.2 million to the Qualified Pension Plan in 2019 and does not expect to make additional contributions for the remainder of 2019. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 9 - Earnings Per Share Basic net income or loss per common share is calculated by dividing net income or loss available to common stockholders by the basic weighted-average number of common shares outstanding for the respective period. Diluted net income or loss per common share is calculated by dividing net income or loss available to common stockholders by the diluted weighted-average number of common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for this calculation consist primarily of non-vested RSUs, contingent PSUs, and shares into which the Senior Convertible Notes are convertible, which are measured using the treasury stock method. Shares of the Company’s common stock traded at an average closing price below the $40.50 conversion price for the three and nine months ended September 30, 2019 , and 2018 , and therefore the Senior Convertible Notes had no dilutive impact. Please refer to Note 9 - Earnings Per Share in the 2018 Form 10-K for additional detail on these potentially dilutive securities. When the Company recognizes a loss from continuing operations, all potentially dilutive shares are anti-dilutive and are consequently excluded from the calculation of diluted net loss per common share. The following table details the weighted-average anti-dilutive securities for the periods presented: For the Three Months Ended For the Nine Months Ended 2019 2018 2019 2018 (in thousands) Anti-dilutive — 2,433 707 — The following table sets forth the calculations of basic and diluted net income (loss) per common share: For the Three Months Ended For the Nine Months Ended 2019 2018 2019 2018 (in thousands, except per share data) Net income (loss) $ 42,234 $ (135,923 ) $ (84,946 ) $ 198,675 Basic weighted-average common shares outstanding 112,804 112,107 112,441 111,836 Dilutive effect of non-vested RSUs and contingent PSUs 530 — — 1,764 Diluted weighted-average common shares outstanding 113,334 112,107 112,441 113,600 Basic net income (loss) per common share $ 0.37 $ (1.21 ) $ (0.76 ) $ 1.78 Diluted net income (loss) per common share $ 0.37 $ (1.21 ) $ (0.76 ) $ 1.75 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Derivative Financial Instruments | Note 10 - Derivative Financial Instruments Summary of Oil, Gas, and NGL Derivative Contracts in Place The Company has entered into various commodity derivative contracts to mitigate a portion of its exposure to potentially adverse market changes in commodity prices and the associated impact on cash flows. As of September 30, 2019 , all derivative counterparties were members of the Company’s Credit Agreement lender group and all contracts were entered into for other-than-trading purposes. The Company’s commodity derivative contracts consist of swap and collar arrangements for oil and gas production, and swap arrangements for NGL production. In a typical commodity swap agreement, if the agreed upon published third-party index price (“index price”) is lower than the swap fixed price, the Company receives the difference between the index price and the agreed upon swap fixed price. If the index price is higher than the swap fixed price, the Company pays the difference. For collar arrangements, the Company receives the difference between an agreed upon index price and the floor price if the index price is below the floor price. The Company pays the difference between the agreed upon ceiling price and the index price if the index price is above the ceiling price. No amounts are paid or received if the index price is between the floor and ceiling prices. The Company has also entered into fixed price oil basis swaps in order to mitigate exposure to adverse pricing differentials between certain industry benchmark prices and the actual physical pricing points where the Company’s production volumes are sold. Currently, the Company has basis swap contracts with fixed price differentials between NYMEX WTI and WTI Midland for a portion of its Midland Basin production with sales contracts that settle at WTI Midland prices. The Company also has basis swaps with fixed price differentials between NYMEX WTI and Intercontinental Exchange Brent Crude (“ICE Brent”) for a portion of its Midland Basin oil production with sales contracts that settle at ICE Brent prices. As of September 30, 2019 , the Company had commodity derivative contracts outstanding through the fourth quarter of 2022, as summarized in the tables below. Oil Swaps Contract Period NYMEX WTI Volumes Weighted-Average Contract Price (MBbl) (per Bbl) Fourth quarter 2019 1,685 $ 61.38 2020 7,441 $ 59.64 Total 9,126 Oil Collars Contract Period NYMEX WTI Volumes Weighted-Average Floor Price Weighted-Average Ceiling Price (MBbl) (per Bbl) (per Bbl) Fourth quarter 2019 3,168 $ 50.54 $ 62.49 2020 6,010 $ 55.00 $ 62.95 2021 329 $ 55.00 $ 56.70 Total 9,507 Oil Basis Swaps Contract Period WTI Midland-NYMEX WTI Volumes Weighted-Average Contract Price (1) NYMEX WTI-ICE Brent Volumes Weighted-Average (2) (MBbl) (per Bbl) (MBbl) (per Bbl) Fourth quarter 2019 3,338 $ (2.87 ) — $ — 2020 14,090 $ (0.73 ) 2,750 $ (8.03 ) 2021 3,708 $ 0.33 3,650 $ (7.86 ) 2022 — $ — 3,650 $ (7.78 ) Total 21,136 10,050 ____________________________________________ (1) Represents the price differential between WTI Midland (Midland, Texas) and NYMEX WTI (Cushing, Oklahoma). (2) Represents the price differential between NYMEX WTI (Cushing, Oklahoma) and ICE Brent (North Sea). Gas Swaps Contract Period IF HSC Volumes Weighted-Average Contract Price WAHA Volumes Weighted-Average Contract Price (BBtu) (per MMBtu) (BBtu) (per MMBtu) Fourth quarter 2019 14,433 $ 2.88 2,962 $ 1.75 2020 11,773 $ 2.87 4,977 $ 1.70 Total (1) 26,206 7,939 ____________________________________________ (1) The Company has natural gas swaps in place that settle against Inside FERC Houston Ship Channel (“IF HSC”), Inside FERC West Texas (“IF WAHA”), and Platt’s Gas Daily West Texas (“GD WAHA”). As of September 30, 2019 , WAHA volumes were comprised of 56 percent IF WAHA and 44 percent GD WAHA . Gas Collars Contract Period IF HSC Volumes Weighted-Average Floor Price Weighted-Average Ceiling Price (BBtu) (per MMBtu) (per MMBtu) Fourth quarter 2019 4,818 $ 2.50 $ 2.83 Total 4,818 NGL Swaps OPIS Ethane Purity Mont Belvieu OPIS Propane Mont Belvieu Non-TET OPIS Normal Butane Mont Belvieu Non-TET OPIS Isobutane Mont Belvieu Non-TET OPIS Natural Gasoline Mont Belvieu Non-TET Contract Period Volumes Weighted-Average Contract Price Volumes Weighted-Average Volumes Weighted-Average Volumes Weighted-Average Volumes Weighted-Average (MBbl) (per Bbl) (MBbl) (per Bbl) (MBbl) (per Bbl) (MBbl) (per Bbl) (MBbl) (per Bbl) Fourth quarter 2019 896 $ 12.36 660 $ 31.60 39 $ 35.64 29 $ 35.70 50 $ 50.93 2020 711 $ 11.38 1,187 $ 23.58 — $ — — $ — — $ — Total 1,607 1,847 39 29 50 Commodity Derivative Contracts Entered Into Subsequent to September 30, 2019 Subsequent to September 30, 2019 , the Company entered into the following commodity derivative contracts: • fixed price NYMEX WTI oil swap contracts for the third quarter of 2020 for a total of 0.9 MMBbl of oil production at a weighted-average contract price of $51.61 per Bbl; • fixed price IF HSC gas swap contracts for the second through fourth quarters of 2020 for a total of 9,725 BBtu of gas production at a weighted-average contract price of $2.28 per MMBtu; • fixed price IF WAHA gas swap contracts for 2020 and 2021 for a total of 12,229 BBtu of gas production at a weighted-average contract price of $1.06 per MMBtu; and • fixed price OPIS Propane Mont Belvieu Non-TET swap contracts for 2020 for a total of 0.5 MMBbl of propane production at a weighted-average contract price of $19.27 per Bbl. Derivative Assets and Liabilities Fair Value The Company’s commodity derivatives are measured at fair value and are included in the accompanying balance sheets as derivative assets and liabilities, with the exception of derivative instruments that meet the “normal purchase normal sale” exclusion. The Company does not designate its derivative commodity contracts as hedging instruments. The fair value of the commodity derivative contracts was a net asset of $137.9 million and $158.3 million as of September 30, 2019 , and December 31, 2018 , respectively. The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets, by category: As of September 30, 2019 As of December 31, 2018 (in thousands) Derivative assets: Current assets $ 143,142 $ 175,130 Noncurrent assets 38,571 58,499 Total derivative assets $ 181,713 $ 233,629 Derivative liabilities: Current liabilities $ 37,798 $ 62,853 Noncurrent liabilities 6,014 12,496 Total derivative liabilities $ 43,812 $ 75,349 Offsetting of Derivative Assets and Liabilities As of September 30, 2019 , and December 31, 2018 , all derivative instruments held by the Company were subject to master netting arrangements with various financial institutions. In general, the terms of the Company’s agreements provide for offsetting of amounts payable or receivable between it and the counterparty, at the election of both parties, for transactions that settle on the same date and in the same currency. The Company’s agreements also provide that in the event of an early termination, the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. The Company’s accounting policy is to not offset these positions in its accompanying balance sheets. The following table provides a reconciliation between the gross assets and liabilities reflected on the accompanying balance sheets and the potential effects of master netting arrangements on the fair value of the Company’s commodity derivative contracts: Derivative Assets Derivative Liabilities As of As of September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 (in thousands) Gross amounts presented in the accompanying balance sheets $ 181,713 $ 233,629 $ (43,812 ) $ (75,349 ) Amounts not offset in the accompanying balance sheets (43,812 ) (56,041 ) 43,812 56,041 Net amounts $ 137,901 $ 177,588 $ — $ (19,308 ) The following table summarizes the commodity components of the derivative settlement (gain) loss, as well as the components of the net derivative (gain) loss line item presented in the accompanying statements of operations: For the Three Months Ended For the Nine Months Ended 2019 2018 2019 2018 (in thousands) Derivative settlement (gain) loss: Oil contracts $ 2,246 $ 16,798 $ 14,304 $ 61,976 Gas contracts (12,210 ) 802 (13,744 ) (4,851 ) NGL contracts (14,758 ) 23,118 (24,403 ) 44,786 Total derivative settlement (gain) loss $ (24,722 ) $ 40,718 $ (23,843 ) $ 101,911 Net derivative (gain) loss: Oil contracts $ (83,984 ) $ 110,413 $ 67,261 $ 146,781 Gas contracts (4,228 ) 4,309 (36,337 ) 21,299 NGL contracts (12,677 ) 63,304 (34,387 ) 81,224 Total net derivative (gain) loss $ (100,889 ) $ 178,026 $ (3,463 ) $ 249,304 Credit Related Contingent Features As of September 30, 2019 , and through the filing of this report, all of the Company’s derivative counterparties were members of the Company’s Credit Agreement lender group. Under the Credit Agreement, the Company is required to provide mortgage liens on assets having a value equal to at least 85 percent of the total PV-9 of the Company’s proved oil and gas properties evaluated in the most recent reserve report. Collateral securing indebtedness under the Credit Agreement also secures the Company’s derivative agreement obligations. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Note 11 - Fair Value Measurements The Company follows fair value measurement accounting guidance for all assets and liabilities measured at fair value. This guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an 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. The fair value hierarchy for grouping these assets and liabilities is based on the significance level of the following inputs: • Level 1 – quoted prices in active markets for identical assets or liabilities • Level 2 – quoted prices in active markets for similar assets or 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 The following table is a listing of the Company’s assets and liabilities that are measured at fair value in the accompanying balance sheets and where they are classified within the fair value hierarchy as of September 30, 2019 : Level 1 Level 2 Level 3 (in thousands) Assets: Derivatives (1) $ — $ 181,713 $ — Liabilities: Derivatives (1) $ — $ 43,812 $ — __________________________________________ (1) This represents a financial asset or liability that is measured at fair value on a recurring basis. The following table is a listing of the Company’s assets and liabilities that are measured at fair value in the accompanying balance sheets and where they were classified within the fair value hierarchy as of December 31, 2018 : Level 1 Level 2 Level 3 (in thousands) Assets: Derivatives (1) $ — $ 233,629 $ — Liabilities: Derivatives (1) $ — $ 75,349 $ — ____________________________________________ (1) This represents a financial asset or liability that is measured at fair value on a recurring basis. Both financial and non-financial assets and liabilities are categorized within the above fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The following is a description of the valuation methodologies used by the Company as well as the general classification of such instruments pursuant to the above fair value hierarchy. Derivatives The Company uses Level 2 inputs to measure the fair value of oil, gas, and NGL commodity derivatives. Fair values are based upon interpolated data. The Company derives internal valuation estimates taking into consideration forward commodity price curves, counterparties’ credit ratings, the Company’s credit rating, and the time value of money. These valuations are then compared to the respective counterparties’ mark-to-market statements. The considered factors result in an estimated exit price that management believes provides a reasonable and consistent methodology for valuing derivative instruments. The commodity derivative instruments utilized by the Company are not considered by management to be complex, structured, or illiquid. The oil, gas, and NGL commodity derivative markets are highly active. Please refer to Note 10 - Derivative Financial Instruments and to Note 11 - Fair Value Measurements in the 2018 Form 10-K for more information regarding the Company’s derivative instruments. Proved and Unproved Oil and Gas Properties and Other Property and Equipment Proved oil and gas properties. Proved oil and gas property costs are evaluated for impairment and reduced to fair value when there is an indication that associated carrying costs may not be recoverable. The Company uses Level 3 inputs and the income valuation technique to measure the fair value of proved properties through the application of discount rates and price forecasts representative of the current operating environment, as selected by the Company’s management. Unproved oil and gas properties. Unproved oil and gas property costs are evaluated for impairment and reduced to fair value when there is an indication that the carrying costs may not be recoverable. To measure the fair value of unproved properties, the Company uses a market approach, which takes into account the following significant assumptions: remaining lease terms, future development plans, risk-weighted potential resource recovery, estimated reserve values, and estimated acreage value based on price(s) received for similar, recent acreage transactions by the Company or other market participants. The Company recorded abandonment and impairment of unproved properties expense of $6.3 million and $25.1 million during the three and nine months ended September 30, 2019 , respectively, and $9.1 million and $26.6 million during three and nine months ended September 30, 2018 , respectively. These expenses related to actual and anticipated lease expirations, as well as actual and anticipated losses on acreage due to title defects, changes in development plans, and other inherent acreage risks. Properties held for sale. Properties classified as held for sale, including any corresponding asset retirement obligation liability, are valued using a market approach, based on an estimated net selling price, as evidenced by the most current bid prices received from third parties, if available. If an estimated selling price is not available, the Company utilizes the various valuation techniques discussed above. Any initial write-down and subsequent changes to the fair value less estimated cost to sell is included within the net gain on divestiture activity line item in the accompanying statements of operations. Please refer to Note 1 - Summary of Significant Accounting Policies and Note 11 - Fair Value Measurements in the 2018 Form 10-K for more information regarding the Company’s approach in determining fair value of its properties. Long-Term Debt The following table reflects the fair value of the Company’s unsecured senior note obligations measured using Level 1 inputs based on quoted secondary market trading prices. These notes were not presented at fair value on the accompanying balance sheets as of September 30, 2019 , or December 31, 2018 , as they were recorded at carrying value, net of any unamortized discounts and deferred financing costs. Please refer to Note 5 - Long-Term Debt for additional discussion. As of September 30, 2019 As of December 31, 2018 Principal Amount Fair Value Principal Amount Fair Value (in thousands) 6.125% Senior Notes due 2022 $ 476,796 $ 459,321 $ 476,796 $ 452,336 5.0% Senior Notes due 2024 $ 500,000 $ 448,950 $ 500,000 $ 439,265 5.625% Senior Notes due 2025 $ 500,000 $ 431,335 $ 500,000 $ 436,460 6.75% Senior Notes due 2026 $ 500,000 $ 440,000 $ 500,000 $ 448,305 6.625% Senior Notes due 2027 $ 500,000 $ 432,500 $ 500,000 $ 442,500 1.50% Senior Convertible Notes due 2021 $ 172,500 $ 156,706 $ 172,500 $ 158,614 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Leases | Note 12 - Leases Effective January 1, 2019, the Company adopted Topic 842, which requires lessees to recognize operating and finance leases with terms greater than 12 months on the balance sheet. The Company adopted this standard using the modified retrospective method and elected to use the optional transition methodology whereby reporting periods prior to adoption continue to be presented in accordance with legacy accounting guidance. As of September 30, 2019 , the Company did not have any agreements in place that were classified as finance leases under Topic 842. Arrangements classified as operating leases are included on the accompanying balance sheets within the other noncurrent assets, other current liabilities, and other noncurrent liabilities line items. For any agreement that contains both lease and non-lease components, such as a service arrangement that also includes an identifiable ROU asset, the Company’s policy for all asset classes is to combine lease and non-lease components together and account for the arrangement as a single lease. Aside from the recognition of ROU assets and corresponding lease liabilities on the accompanying balance sheets, Topic 842 does not have a material impact on the timing or classification of costs incurred for those agreements considered to be leases. As outlined in Topic 842, a ROU asset represents a lessee’s right to use an underlying asset for the lease term, while the associated lease liability represents the lessee’s obligations to make lease payments. At the commencement date, which is the date on which a lessor makes an underlying asset available for use by a lessee, a lease ROU asset and corresponding lease liability is recognized based on the present value of the future lease payments. The initial measurement of lease payments may also be adjusted for certain items, including options that are reasonably certain to be exercised, such as options to purchase the asset at the end of the lease term, or options to extend or early terminate the lease. Excluded from the initial measurement of a ROU asset and corresponding lease liability are certain variable lease payments, such as payments made that vary depending on actual usage or performance. The Company evaluates a contractual arrangement at its inception to determine if it is a lease or contains an identifiable lease component as defined by Topic 842. When evaluating a contract to determine appropriate classification and recognition under Topic 842, significant judgment may be necessary to determine, among other criteria, if an embedded leasing arrangement exists, the length of the term, classification as either an operating or financing lease, which options are reasonably likely to be exercised, fair value of the underlying ROU asset or assets, upfront costs, and future lease payments that are included or excluded in the initial measurement of the ROU asset. Certain assumptions and judgments made by the Company when evaluating a contract that meets the definition of a lease under Topic 842 include: • Discount Rate - Unless implicitly defined, the Company determines the present value of future lease payments using an estimated incremental borrowing rate based on a yield curve analysis that factors in certain assumptions, including the term of the lease and credit rating of the Company at lease inception. • Lease Term - The Company evaluates each contract containing a lease arrangement at inception to determine the length of the lease term when recognizing a ROU asset and corresponding lease liability. When determining the lease term, options available to extend or early terminate the arrangement are evaluated and included when it is reasonably certain an option will be exercised. Because of the Company’s intent to maintain financial and operational flexibility, there are no available options to extend that the Company is reasonably certain it will exercise. Additionally, based on expectations for those agreements with early termination options, there are no leases in which material early termination options are reasonably certain to be exercised by the Company. Currently, the Company has operating leases for asset classes that include office space, office equipment, drilling rigs, midstream agreements, vehicles, and equipment rentals used in field operations. For those operating leases included on the accompanying balance sheets, which only includes leases with terms greater than 12 months at commencement, remaining lease terms range from less than one year to approximately seven years . The weighted-average lease term remaining for these leases is approximately three years . Certain leases also contain optional extension periods that allow for terms to be extended for up to an additional 10 years . An early termination option also exists for certain leases, some of which allow for the Company to terminate a lease within one year. Exercising an early termination option may also result in an early termination penalty depending on the terms of the underlying agreement. Subsequent to initial measurement, costs associated with the Company’s operating leases are either expensed or capitalized depending on how the underlying ROU asset is utilized and in accordance with GAAP requirements. For example, costs associated with drilling rigs and completion crews that are considered ROU assets are typically capitalized as part of the development of the Company’s oil and gas properties. Please refer to Note 1 - Summary of Significant Accounting Policies in the Company’s 2018 Form 10-K for additional information on its accounting policies for oil and gas development and producing activities. When calculating the Company’s ROU asset and liability for a contractual arrangement that qualifies as an operating lease, the Company considers all of the necessary payments made or that are expected to be made upon commencement of the lease. Excluded from the initial measurement are certain variable lease payments, which for the Company’s drilling rigs, completion crews, and midstream agreements, may be a significant component of the total lease costs. For the three and nine months ended September 30, 2019 , total costs related to operating leases, including short-term leases, and variable lease payments made for leases with initial lease terms greater than 12 months, were $107.3 million and $422.4 million , respectively. These totals do not reflect amounts that may be reimbursed by other third parties in the normal course of business, such as non-operating working interest owners. Components of the Company’s total lease cost, whether capitalized or expensed, for the three and nine months ended September 30, 2019 , were as follows: For the Three Months Ended September 30, 2019 For the Nine Months Ended September 30, 2019 (in thousands) Operating lease cost $ 8,344 $ 28,802 Short-term lease cost (1) 72,874 309,876 Variable lease cost (2) 26,090 83,696 Total lease cost (3) $ 107,308 $ 422,374 ____________________________________________ (1) Costs associated with short-term lease agreements relate primarily to operational activities where underlying lease terms are less than one year. This amount is significant as it includes drilling and completion activities and field equipment rentals, most of which are contracted for 12 months or less. It is expected that this amount will fluctuate primarily with the number of drilling rigs and completion crews the Company is operating under short-term agreements. (2) Variable lease payments include additional payments made that were not included in the initial measurement of the ROU asset and corresponding liability for lease agreements with terms longer than 12 months. Variable lease payments relate to the actual volumes transported under certain midstream agreements, actual usage associated with drilling rigs and completion crews, and variable utility costs associated with the Company’s leased office space. Fluctuations in variable lease payments are driven by actual volumes delivered and the number of drilling rigs and completion crews operating under long-term agreements. (3) Lease costs are either expensed on the accompanying statements of operations or capitalized on the accompanying balance sheets depending on the nature and use of the underlying ROU asset. Other information related to the Company’s leases for the nine months ended September 30, 2019 , was as follows: For the Nine Months Ended September 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,029 Investing cash flows from operating leases $ 20,256 Right-of-use assets obtained in exchange for new operating lease liabilities $ 24,014 Maturities for the Company’s operating lease liabilities included on the accompanying balance sheets as of September 30, 2019 , were as follows: As of September 30, 2019 (in thousands) 2019 (remaining after September 30, 2019) $ 6,871 2020 20,427 2021 11,982 2022 5,712 2023 3,572 Thereafter 3,721 Total Lease payments $ 52,285 Less: Imputed interest (1) (5,098 ) Total $ 47,187 ____________________________________________ (1) The weighted-average discount rate used to determine the operating lease liability as of September 30, 2019 was 6.6 percent . Amounts recorded on the accompanying balance sheets for operating leases as of September 30, 2019 , were as follows: As of September 30, 2019 (in thousands) Other noncurrent assets $ 44,438 Other current liabilities $ 21,804 Other noncurrent liabilities $ 25,384 As of September 30, 2019 , and through the filing of this report, the Company has no material lease arrangements which are scheduled to commence in the future. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Quarterly Report on Form 10-Q, and Regulation S-X. These financial statements do not include all information and notes required by GAAP for annual financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “ 2018 Form 10-K”). In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation of interim financial information, have been included. Operating results for the periods presented are not necessarily indicative of expected results for the full year. In connection with the preparation of the Company’s unaudited condensed consolidated financial statements, the Company evaluated events subsequent to the balance sheet date of September 30, 2019 , and through the filing of this report. |
Recently Issued Accounting Standards, Policy [Policy Text Block] | Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), followed by other related ASUs that provided targeted improvements and additional practical expedient options (collectively “ASU 2016-02” or “Topic 842”). The Company adopted ASU 2016-02 on January 1, 2019, using the modified retrospective method. The Company elected as part of its adoption to also use the optional transition methodology whereby lease accounting for previously reported periods continues to be reported in accordance with historical accounting guidance for leases in effect for those prior periods. Policy elections and practical expedients the Company has implemented in connection with the adoption of ASU 2016-02 include (a) excluding from the balance sheet leases with terms that are less than one year, (b) for agreements that contain both lease and non-lease components, combining these components together and accounting for them as a single lease, (c) the package of practical expedients, which among other requirements, allows the Company to avoid reassessing contracts that commenced prior to adoption that were properly evaluated under legacy GAAP, and (d) excluding land easements that existed or expired before adoption of ASU 2016-02. The scope of ASU 2016-02 does not apply to leases used in the exploration or use of minerals, oil, natural gas, or other similar non-regenerative resources. Upon adoption on January 1, 2019, the Company recognized approximately $50.0 million in right-of-use (“ROU”) assets and related lease liabilities for its operating leases. There was no cumulative effect to retained earnings upon the adoption of this guidance. Please refer to Note 12 - Leases for additional discussion. Other than as disclosed in the 2018 Form 10-K, there are no ASUs that would have a material effect on the Company’s unaudited condensed consolidated financial statements and related disclosures that have been issued but not yet adopted by the Company as of September 30, 2019 , and through the filing of this report. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Derivatives The Company uses Level 2 inputs to measure the fair value of oil, gas, and NGL commodity derivatives. Fair values are based upon interpolated data. The Company derives internal valuation estimates taking into consideration forward commodity price curves, counterparties’ credit ratings, the Company’s credit rating, and the time value of money. These valuations are then compared to the respective counterparties’ mark-to-market statements. The considered factors result in an estimated exit price that management believes provides a reasonable and consistent methodology for valuing derivative instruments. The commodity derivative instruments utilized by the Company are not considered by management to be complex, structured, or illiquid. The oil, gas, and NGL commodity derivative markets are highly active. Please refer to Note 10 - Derivative Financial Instruments and to Note 11 - Fair Value Measurements in the 2018 Form 10-K for more information regarding the Company’s derivative instruments. |
Property, Plant and Equipment, Impairment, Policy [Policy Text Block] | Proved and Unproved Oil and Gas Properties and Other Property and Equipment Proved oil and gas properties. Proved oil and gas property costs are evaluated for impairment and reduced to fair value when there is an indication that associated carrying costs may not be recoverable. The Company uses Level 3 inputs and the income valuation technique to measure the fair value of proved properties through the application of discount rates and price forecasts representative of the current operating environment, as selected by the Company’s management. Unproved oil and gas properties. Unproved oil and gas property costs are evaluated for impairment and reduced to fair value when there is an indication that the carrying costs may not be recoverable. To measure the fair value of unproved properties, the Company uses a market approach, which takes into account the following significant assumptions: remaining lease terms, future development plans, risk-weighted potential resource recovery, estimated reserve values, and estimated acreage value based on price(s) received for similar, recent acreage transactions by the Company or other market participants. The Company recorded abandonment and impairment of unproved properties expense of $6.3 million and $25.1 million during the three and nine months ended September 30, 2019 , respectively, and $9.1 million and $26.6 million during three and nine months ended September 30, 2018 , respectively. These expenses related to actual and anticipated lease expirations, as well as actual and anticipated losses on acreage due to title defects, changes in development plans, and other inherent acreage risks. |
Properties held for sale, Policy [Policy Text Block] | Properties held for sale. Properties classified as held for sale, including any corresponding asset retirement obligation liability, are valued using a market approach, based on an estimated net selling price, as evidenced by the most current bid prices received from third parties, if available. If an estimated selling price is not available, the Company utilizes the various valuation techniques discussed above. Any initial write-down and subsequent changes to the fair value less estimated cost to sell is included within the net gain on divestiture activity line item in the accompanying statements of operations. Please refer to Note 1 - Summary of Significant Accounting Policies and Note 11 - Fair Value Measurements in the 2018 Form 10-K for more information regarding the Company’s approach in determining fair value of its properties. |
Leases, Policy [Policy Text Block] | Arrangements classified as operating leases are included on the accompanying balance sheets within the other noncurrent assets, other current liabilities, and other noncurrent liabilities line items. For any agreement that contains both lease and non-lease components, such as a service arrangement that also includes an identifiable ROU asset, the Company’s policy for all asset classes is to combine lease and non-lease components together and account for the arrangement as a single lease. Aside from the recognition of ROU assets and corresponding lease liabilities on the accompanying balance sheets, Topic 842 does not have a material impact on the timing or classification of costs incurred for those agreements considered to be leases. As outlined in Topic 842, a ROU asset represents a lessee’s right to use an underlying asset for the lease term, while the associated lease liability represents the lessee’s obligations to make lease payments. At the commencement date, which is the date on which a lessor makes an underlying asset available for use by a lessee, a lease ROU asset and corresponding lease liability is recognized based on the present value of the future lease payments. The initial measurement of lease payments may also be adjusted for certain items, including options that are reasonably certain to be exercised, such as options to purchase the asset at the end of the lease term, or options to extend or early terminate the lease. Excluded from the initial measurement of a ROU asset and corresponding lease liability are certain variable lease payments, such as payments made that vary depending on actual usage or performance. The Company evaluates a contractual arrangement at its inception to determine if it is a lease or contains an identifiable lease component as defined by Topic 842. When evaluating a contract to determine appropriate classification and recognition under Topic 842, significant judgment may be necessary to determine, among other criteria, if an embedded leasing arrangement exists, the length of the term, classification as either an operating or financing lease, which options are reasonably likely to be exercised, fair value of the underlying ROU asset or assets, upfront costs, and future lease payments that are included or excluded in the initial measurement of the ROU asset. Certain assumptions and judgments made by the Company when evaluating a contract that meets the definition of a lease under Topic 842 include: • Discount Rate - Unless implicitly defined, the Company determines the present value of future lease payments using an estimated incremental borrowing rate based on a yield curve analysis that factors in certain assumptions, including the term of the lease and credit rating of the Company at lease inception. • Lease Term - The Company evaluates each contract containing a lease arrangement at inception to determine the length of the lease term when recognizing a ROU asset and corresponding lease liability. When determining the lease term, options available to extend or early terminate the arrangement are evaluated and included when it is reasonably certain an option will be exercised. Because of the Company’s intent to maintain financial and operational flexibility, there are no available options to extend that the Company is reasonably certain it will exercise. Additionally, based on expectations for those agreements with early termination options, there are no leases in which material early termination options are reasonably certain to be exercised by the Company. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of oil, gas, and NGL production revenue [Table Text Block] | The tables below present oil, gas, and NGL production revenue by product type for each of the Company’s operating regions for the three and nine months ended September 30, 2019 , and 2018 : Midland Basin South Texas Total Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2019 2018 2019 2018 2019 2018 (in thousands) Oil production revenue $ 277,361 $ 270,086 $ 15,496 $ 17,436 $ 292,857 $ 287,522 Gas production revenue 17,780 40,364 46,267 56,446 64,047 96,810 NGL production revenue 124 563 32,391 73,487 32,515 74,050 Total $ 295,265 $ 311,013 $ 94,154 $ 147,369 $ 389,419 $ 458,382 Relative percentage 76 % 68 % 24 % 32 % 100 % 100 % ____________________________________________ Note: Amounts may not calculate due to rounding. Midland Basin South Texas Rocky Mountain Total Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 2019 2018 2019 2018 (in thousands) Oil production revenue $ 791,055 $ 703,516 $ 45,007 $ 56,365 $ — $ 54,851 $ 836,062 $ 814,732 Gas production revenue 49,821 96,974 144,563 161,414 — 1,595 194,384 259,983 NGL production revenue 102 816 106,201 167,505 — 790 106,303 169,111 Total $ 840,978 $ 801,306 $ 295,771 $ 385,284 $ — $ 57,236 $ 1,136,749 $ 1,243,826 Relative percentage 74 % 64 % 26 % 31 % — % 5 % 100 % 100 % ____________________________________________ Note: Amounts may not calculate due to rounding. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes [Table Text Block] | The provision for income taxes for the three and nine months ended September 30, 2019 , and 2018 , consisted of the following: For the Three Months Ended For the Nine Months Ended 2019 2018 2019 2018 (in thousands) Current portion of income tax (expense) benefit: Federal $ 3,826 $ — $ 3,826 $ — State (320 ) (85 ) (1,109 ) (670 ) Deferred portion of income tax (expense) benefit (19,617 ) 36,833 13,620 (60,672 ) Income tax (expense) benefit $ (16,111 ) $ 36,748 $ 16,337 $ (61,342 ) Effective tax rate 27.6 % 21.3 % 16.1 % 23.6 % |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Credit Agreement Facilities [Table Text Block] | The following table presents the outstanding balance, total amount of letters of credit outstanding, and available borrowing capacity under the Credit Agreement as of October 24, 2019 , September 30, 2019 , and December 31, 2018 : As of October 24, 2019 As of September 30, 2019 As of December 31, 2018 (in thousands) Revolving credit facility (1) $ 143,000 $ 129,000 $ — Letters of credit (2) — — 200 Available borrowing capacity 1,057,000 1,071,000 999,800 Total aggregate lender commitment amount $ 1,200,000 $ 1,200,000 $ 1,000,000 ____________________________________________ (1) Unamortized deferred financing costs attributable to the credit facility are presented as a component of the other noncurrent assets line item on the accompanying balance sheets and totaled $6.3 million and $6.4 million as of September 30, 2019 , and December 31, 2018 , respectively. These costs are being amortized over the term of the credit facility on a straight-line basis. (2) Letters of credit outstanding reduce the amount available under the credit facility on a dollar-for-dollar basis. The letter of credit outstanding as of December 31, 2018 , was released during the three months ended March 31, 2019 . |
Schedule of Senior Notes [Table Text Block] | The Senior Notes, net of unamortized deferred financing costs line item on the accompanying balance sheets as of September 30, 2019 , and December 31, 2018 , consisted of the following: As of September 30, 2019 As of December 31, 2018 Principal Amount Unamortized Deferred Financing Costs Principal Amount, Net of Unamortized Deferred Financing Costs Principal Amount Unamortized Deferred Financing Costs Principal Amount, Net of Unamortized Deferred Financing Costs (in thousands) 6.125% Senior Notes due 2022 $ 476,796 $ 3,170 $ 473,626 $ 476,796 $ 3,921 $ 472,875 5.0% Senior Notes due 2024 500,000 3,996 496,004 500,000 4,688 495,312 5.625% Senior Notes due 2025 500,000 5,130 494,870 500,000 5,808 494,192 6.75% Senior Notes due 2026 500,000 5,780 494,220 500,000 6,407 493,593 6.625% Senior Notes due 2027 500,000 6,834 493,166 500,000 7,533 492,467 Total $ 2,476,796 $ 24,910 $ 2,451,886 $ 2,476,796 $ 28,357 $ 2,448,439 |
Schedule of Senior Convertible Notes [Table Text Block] | The Senior Convertible Notes, net of unamortized discount and deferred financing costs line on the accompanying balance sheets as of September 30, 2019 , and December 31, 2018 , consisted of the following: As of September 30, 2019 As of December 31, 2018 (in thousands) Principal amount of Senior Convertible Notes $ 172,500 $ 172,500 Unamortized debt discount (16,012 ) (22,313 ) Unamortized deferred financing costs (1,605 ) (2,293 ) Senior Convertible Notes, net of unamortized discount and deferred financing costs $ 154,883 $ 147,894 |
Compensation Plans Compensation
Compensation Plans Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Compensation Related Costs [Abstract] | |
Schedule of non-vested PSUs [Table Text Block] | A summary of the status and activity of non-vested PSUs for the nine months ended September 30, 2019 , is presented in the following table: PSUs (1) Weighted-Average Grant-Date Fair Value Non-vested at beginning of year 1,711,259 $ 20.68 Granted 793,125 $ 12.80 Vested (346,021 ) $ 26.31 Forfeited (40,999 ) $ 17.96 Non-vested at end of quarter 2,117,364 $ 16.86 ____________________________________________ (1) The number of awards assumes a multiplier of one . The final number of shares of common stock issued may vary depending on the three -year performance multiplier which ranges from zero to two . |
Schedule of non-vested RSUs [Table Text Block] | A summary of the status and activity of non-vested RSUs granted to employees for the nine months ended September 30, 2019 , is presented in the following table: RSUs Weighted-Average Grant-Date Fair Value Non-vested at beginning of year 1,243,163 $ 21.50 Granted 978,932 $ 12.36 Vested (466,535 ) $ 21.93 Forfeited (111,188 ) $ 19.94 Non-vested at end of quarter 1,644,372 $ 16.04 |
Pension Benefits (Tables)
Pension Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Components of the net periodic benefit cost for the pension plans [Table Text Block] | Components of Net Periodic Benefit Cost for the Pension Plans For the Three Months Ended For the Nine Months Ended 2019 2018 2019 2018 (in thousands) Components of net periodic benefit cost: Service cost $ 1,395 $ 1,683 $ 4,186 $ 5,048 Interest cost 699 657 2,094 1,967 Expected return on plan assets that reduces periodic pension benefit cost (393 ) (466 ) (1,180 ) (1,397 ) Amortization of prior service cost 4 4 13 13 Amortization of net actuarial loss 239 331 718 995 Net periodic benefit cost $ 1,944 $ 2,209 $ 5,831 $ 6,626 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of antidilutive securities excluded from computation of earnings per share [Table Text Block] | The following table details the weighted-average anti-dilutive securities for the periods presented: For the Three Months Ended For the Nine Months Ended 2019 2018 2019 2018 (in thousands) Anti-dilutive — 2,433 707 — |
Schedule of calculations of basic and diluted net income (loss) per common share [Table Text Block] | The following table sets forth the calculations of basic and diluted net income (loss) per common share: For the Three Months Ended For the Nine Months Ended 2019 2018 2019 2018 (in thousands, except per share data) Net income (loss) $ 42,234 $ (135,923 ) $ (84,946 ) $ 198,675 Basic weighted-average common shares outstanding 112,804 112,107 112,441 111,836 Dilutive effect of non-vested RSUs and contingent PSUs 530 — — 1,764 Diluted weighted-average common shares outstanding 113,334 112,107 112,441 113,600 Basic net income (loss) per common share $ 0.37 $ (1.21 ) $ (0.76 ) $ 1.78 Diluted net income (loss) per common share $ 0.37 $ (1.21 ) $ (0.76 ) $ 1.75 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Schedule of notional amounts of outstanding derivative positions [Table Text Block] | As of September 30, 2019 , the Company had commodity derivative contracts outstanding through the fourth quarter of 2022, as summarized in the tables below. Oil Swaps Contract Period NYMEX WTI Volumes Weighted-Average Contract Price (MBbl) (per Bbl) Fourth quarter 2019 1,685 $ 61.38 2020 7,441 $ 59.64 Total 9,126 Oil Collars Contract Period NYMEX WTI Volumes Weighted-Average Floor Price Weighted-Average Ceiling Price (MBbl) (per Bbl) (per Bbl) Fourth quarter 2019 3,168 $ 50.54 $ 62.49 2020 6,010 $ 55.00 $ 62.95 2021 329 $ 55.00 $ 56.70 Total 9,507 Oil Basis Swaps Contract Period WTI Midland-NYMEX WTI Volumes Weighted-Average Contract Price (1) NYMEX WTI-ICE Brent Volumes Weighted-Average (2) (MBbl) (per Bbl) (MBbl) (per Bbl) Fourth quarter 2019 3,338 $ (2.87 ) — $ — 2020 14,090 $ (0.73 ) 2,750 $ (8.03 ) 2021 3,708 $ 0.33 3,650 $ (7.86 ) 2022 — $ — 3,650 $ (7.78 ) Total 21,136 10,050 ____________________________________________ (1) Represents the price differential between WTI Midland (Midland, Texas) and NYMEX WTI (Cushing, Oklahoma). (2) Represents the price differential between NYMEX WTI (Cushing, Oklahoma) and ICE Brent (North Sea). Gas Swaps Contract Period IF HSC Volumes Weighted-Average Contract Price WAHA Volumes Weighted-Average Contract Price (BBtu) (per MMBtu) (BBtu) (per MMBtu) Fourth quarter 2019 14,433 $ 2.88 2,962 $ 1.75 2020 11,773 $ 2.87 4,977 $ 1.70 Total (1) 26,206 7,939 ____________________________________________ (1) The Company has natural gas swaps in place that settle against Inside FERC Houston Ship Channel (“IF HSC”), Inside FERC West Texas (“IF WAHA”), and Platt’s Gas Daily West Texas (“GD WAHA”). As of September 30, 2019 , WAHA volumes were comprised of 56 percent IF WAHA and 44 percent GD WAHA . Gas Collars Contract Period IF HSC Volumes Weighted-Average Floor Price Weighted-Average Ceiling Price (BBtu) (per MMBtu) (per MMBtu) Fourth quarter 2019 4,818 $ 2.50 $ 2.83 Total 4,818 NGL Swaps OPIS Ethane Purity Mont Belvieu OPIS Propane Mont Belvieu Non-TET OPIS Normal Butane Mont Belvieu Non-TET OPIS Isobutane Mont Belvieu Non-TET OPIS Natural Gasoline Mont Belvieu Non-TET Contract Period Volumes Weighted-Average Contract Price Volumes Weighted-Average Volumes Weighted-Average Volumes Weighted-Average Volumes Weighted-Average (MBbl) (per Bbl) (MBbl) (per Bbl) (MBbl) (per Bbl) (MBbl) (per Bbl) (MBbl) (per Bbl) Fourth quarter 2019 896 $ 12.36 660 $ 31.60 39 $ 35.64 29 $ 35.70 50 $ 50.93 2020 711 $ 11.38 1,187 $ 23.58 — $ — — $ — — $ — Total 1,607 1,847 39 29 50 |
Schedule of fair value of derivatives in accompanying balance sheets [Table Text Block] | The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets, by category: As of September 30, 2019 As of December 31, 2018 (in thousands) Derivative assets: Current assets $ 143,142 $ 175,130 Noncurrent assets 38,571 58,499 Total derivative assets $ 181,713 $ 233,629 Derivative liabilities: Current liabilities $ 37,798 $ 62,853 Noncurrent liabilities 6,014 12,496 Total derivative liabilities $ 43,812 $ 75,349 |
Schedule of the potential effects of master netting arrangements [Table Text Block] | The following table provides a reconciliation between the gross assets and liabilities reflected on the accompanying balance sheets and the potential effects of master netting arrangements on the fair value of the Company’s commodity derivative contracts: Derivative Assets Derivative Liabilities As of As of September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 (in thousands) Gross amounts presented in the accompanying balance sheets $ 181,713 $ 233,629 $ (43,812 ) $ (75,349 ) Amounts not offset in the accompanying balance sheets (43,812 ) (56,041 ) 43,812 56,041 Net amounts $ 137,901 $ 177,588 $ — $ (19,308 ) |
Schedule of the components of the derivative settlement (gain) loss and of the net derivative (gain) loss [Table Text Block] | The following table summarizes the commodity components of the derivative settlement (gain) loss, as well as the components of the net derivative (gain) loss line item presented in the accompanying statements of operations: For the Three Months Ended For the Nine Months Ended 2019 2018 2019 2018 (in thousands) Derivative settlement (gain) loss: Oil contracts $ 2,246 $ 16,798 $ 14,304 $ 61,976 Gas contracts (12,210 ) 802 (13,744 ) (4,851 ) NGL contracts (14,758 ) 23,118 (24,403 ) 44,786 Total derivative settlement (gain) loss $ (24,722 ) $ 40,718 $ (23,843 ) $ 101,911 Net derivative (gain) loss: Oil contracts $ (83,984 ) $ 110,413 $ 67,261 $ 146,781 Gas contracts (4,228 ) 4,309 (36,337 ) 21,299 NGL contracts (12,677 ) 63,304 (34,387 ) 81,224 Total net derivative (gain) loss $ (100,889 ) $ 178,026 $ (3,463 ) $ 249,304 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table is a listing of the Company’s assets and liabilities that are measured at fair value in the accompanying balance sheets and where they are classified within the fair value hierarchy as of September 30, 2019 : Level 1 Level 2 Level 3 (in thousands) Assets: Derivatives (1) $ — $ 181,713 $ — Liabilities: Derivatives (1) $ — $ 43,812 $ — __________________________________________ (1) This represents a financial asset or liability that is measured at fair value on a recurring basis. The following table is a listing of the Company’s assets and liabilities that are measured at fair value in the accompanying balance sheets and where they were classified within the fair value hierarchy as of December 31, 2018 : Level 1 Level 2 Level 3 (in thousands) Assets: Derivatives (1) $ — $ 233,629 $ — Liabilities: Derivatives (1) $ — $ 75,349 $ — ____________________________________________ (1) This represents a financial asset or liability that is measured at fair value on a recurring basis. |
Long Term Debt Fair Value [Table Text Block] | The following table reflects the fair value of the Company’s unsecured senior note obligations measured using Level 1 inputs based on quoted secondary market trading prices. These notes were not presented at fair value on the accompanying balance sheets as of September 30, 2019 , or December 31, 2018 , as they were recorded at carrying value, net of any unamortized discounts and deferred financing costs. Please refer to Note 5 - Long-Term Debt for additional discussion. As of September 30, 2019 As of December 31, 2018 Principal Amount Fair Value Principal Amount Fair Value (in thousands) 6.125% Senior Notes due 2022 $ 476,796 $ 459,321 $ 476,796 $ 452,336 5.0% Senior Notes due 2024 $ 500,000 $ 448,950 $ 500,000 $ 439,265 5.625% Senior Notes due 2025 $ 500,000 $ 431,335 $ 500,000 $ 436,460 6.75% Senior Notes due 2026 $ 500,000 $ 440,000 $ 500,000 $ 448,305 6.625% Senior Notes due 2027 $ 500,000 $ 432,500 $ 500,000 $ 442,500 1.50% Senior Convertible Notes due 2021 $ 172,500 $ 156,706 $ 172,500 $ 158,614 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Components of total lease cost [Table Text Block] | Components of the Company’s total lease cost, whether capitalized or expensed, for the three and nine months ended September 30, 2019 , were as follows: For the Three Months Ended September 30, 2019 For the Nine Months Ended September 30, 2019 (in thousands) Operating lease cost $ 8,344 $ 28,802 Short-term lease cost (1) 72,874 309,876 Variable lease cost (2) 26,090 83,696 Total lease cost (3) $ 107,308 $ 422,374 ____________________________________________ (1) Costs associated with short-term lease agreements relate primarily to operational activities where underlying lease terms are less than one year. This amount is significant as it includes drilling and completion activities and field equipment rentals, most of which are contracted for 12 months or less. It is expected that this amount will fluctuate primarily with the number of drilling rigs and completion crews the Company is operating under short-term agreements. (2) Variable lease payments include additional payments made that were not included in the initial measurement of the ROU asset and corresponding liability for lease agreements with terms longer than 12 months. Variable lease payments relate to the actual volumes transported under certain midstream agreements, actual usage associated with drilling rigs and completion crews, and variable utility costs associated with the Company’s leased office space. Fluctuations in variable lease payments are driven by actual volumes delivered and the number of drilling rigs and completion crews operating under long-term agreements. (3) Lease costs are either expensed on the accompanying statements of operations or capitalized on the accompanying balance sheets depending on the nature and use of the underlying ROU asset. Other information related to the Company’s leases for the nine months ended September 30, 2019 , was as follows: For the Nine Months Ended September 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,029 Investing cash flows from operating leases $ 20,256 Right-of-use assets obtained in exchange for new operating lease liabilities $ 24,014 |
Operating lease liability maturities [Table Text Block] | Maturities for the Company’s operating lease liabilities included on the accompanying balance sheets as of September 30, 2019 , were as follows: As of September 30, 2019 (in thousands) 2019 (remaining after September 30, 2019) $ 6,871 2020 20,427 2021 11,982 2022 5,712 2023 3,572 Thereafter 3,721 Total Lease payments $ 52,285 Less: Imputed interest (1) (5,098 ) Total $ 47,187 ____________________________________________ (1) The weighted-average discount rate used to determine the operating lease liability as of September 30, 2019 was 6.6 percent . |
Balance Sheet information related to operating leases [Table Text Block] | Amounts recorded on the accompanying balance sheets for operating leases as of September 30, 2019 , were as follows: As of September 30, 2019 (in thousands) Other noncurrent assets $ 44,438 Other current liabilities $ 21,804 Other noncurrent liabilities $ 25,384 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Sep. 30, 2019 |
Lessee Disclosure [Abstract] | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 50,000 | $ 24,014 |
Disaggregation of oil, gas, and
Disaggregation of oil, gas, and NGL production revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 389,419 | $ 458,382 | $ 1,136,749 | $ 1,243,826 |
Revenue, Remaining Performance Obligation, Amount | 0 | 0 | ||
Oil production revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 292,857 | 287,522 | 836,062 | 814,732 |
Gas production revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 64,047 | 96,810 | 194,384 | 259,983 |
NGL production revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 32,515 | 74,050 | 106,303 | 169,111 |
Midland Basin [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 295,265 | 311,013 | 840,978 | 801,306 |
Midland Basin [Member] | Oil production revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 277,361 | 270,086 | 791,055 | 703,516 |
Midland Basin [Member] | Gas production revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 17,780 | 40,364 | 49,821 | 96,974 |
Midland Basin [Member] | NGL production revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 124 | 563 | 102 | 816 |
South Texas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 94,154 | 147,369 | 295,771 | 385,284 |
South Texas [Member] | Oil production revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 15,496 | 17,436 | 45,007 | 56,365 |
South Texas [Member] | Gas production revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 46,267 | 56,446 | 144,563 | 161,414 |
South Texas [Member] | NGL production revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 32,391 | $ 73,487 | 106,201 | 167,505 |
Rocky Mountain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 57,236 | ||
Rocky Mountain [Member] | Oil production revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 54,851 | ||
Rocky Mountain [Member] | Gas production revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 1,595 | ||
Rocky Mountain [Member] | NGL production revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 0 | $ 790 | ||
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Relative percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Midland Basin [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Relative percentage | 76.00% | 68.00% | 74.00% | 64.00% |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | South Texas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Relative percentage | 24.00% | 32.00% | 26.00% | 31.00% |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Rocky Mountain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Relative percentage | 0.00% | 5.00% |
Accounts Receivable from Custom
Accounts Receivable from Customers (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts Receivable [Line Items] | ||
Accounts receivable from contracts with customers | $ 146,211 | $ 167,536 |
Oil, gas, and NGL production revenue [Member] | ||
Accounts Receivable [Line Items] | ||
Accounts receivable from contracts with customers | $ 106,300 | $ 107,200 |
Divestitures and Assets Held fo
Divestitures and Assets Held for Sale (Details) $ in Thousands | Mar. 26, 2018a | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Properties held for sale, net | $ 0 | $ 0 | $ 5,280 | ||||
Net divestiture proceeds | 12,520 | [1] | $ 743,199 | ||||
Net gain on divestiture activity | $ 0 | $ 786 | $ 323 | 425,656 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | PRB Divestiture 2018 [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net acreage divested | a | 112,000 | ||||||
Net divestiture proceeds | 490,800 | 492,200 | |||||
Net gain on divestiture activity | 410,600 | 410,600 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Divide County Divestiture and Halff East Divestiture 2018 [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net divestiture proceeds | 250,800 | 252,200 | |||||
Net gain on divestiture activity | $ 15,400 | $ 15,400 | |||||
[1] | (1) As of September 30, 2019, a portion of net proceeds from the sale of oil and gas properties was restricted for future property acquisitions. Restricted cash is included in the other noncurrent assets line item on the accompanying unaudited condensed consolidated balance sheets (“accompanying balance sheets”). |
Nonmonetary Transactions (Detai
Nonmonetary Transactions (Details) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018USD ($)a | Sep. 30, 2019USD ($)a | Sep. 30, 2018USD ($) | |
Nonmonetary Transaction [Line Items] | |||
Carrying value of properties exchanged | $ 70,808,000 | $ 95,121,000 | |
Howard, Martin, and Midland Counties Trades 2019 [Member] | |||
Nonmonetary Transaction [Line Items] | |||
Net acres exchanged | a | 2,100 | ||
Carrying value of properties exchanged | $ 70,800,000 | ||
Basis of accounting for assets exchanged | carryover | ||
Gain (loss) recognized on trade | $ 0 | ||
Howard and Martin Counties Trades 2018 [Member] | |||
Nonmonetary Transaction [Line Items] | |||
Net acres exchanged | a | 2,650 | ||
Carrying value of properties exchanged | $ 95,100,000 | ||
Basis of accounting for assets exchanged | carryover | ||
Gain (loss) recognized on trade | $ 0 |
Asset Acquisitions (Details)
Asset Acquisitions (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2018USD ($)a | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Asset Acquisitions [Line Items] | |||
Payments to acquire oil and gas property and equipment | $ 2,581 | $ 24,571 | |
Other Martin County Acquisition 2018 [Member] | |||
Asset Acquisitions [Line Items] | |||
Net acres acquired | a | 720 | ||
Payments to acquire oil and gas property and equipment | $ 24,600 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Components of the provision for income taxes | |||||
Federal | $ 3,826 | $ 0 | $ 3,826 | $ 0 | |
State | (320) | (85) | (1,109) | (670) | |
Deferred portion of income tax (expense) benefit | (19,617) | 36,833 | 13,620 | (60,672) | |
Income tax (expense) benefit | $ (16,111) | $ 36,748 | $ 16,337 | $ (61,342) | |
Effective tax rate | 27.60% | 21.30% | 16.10% | 23.60% | |
Subsequent Event [Member] | |||||
Proceeds from income tax refunds | $ 7,700 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - USD ($) $ in Thousands | Oct. 24, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||||
Revolving credit facility | $ 129,000 | $ 0 | ||
Revolving Credit Facility | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Revolving credit facility, maximum loan amount | 2,500,000 | |||
Revolving credit facility, current borrowing base | 1,600,000 | |||
Revolving credit facility, aggregate lender commitments | 1,200,000 | 1,000,000 | ||
Revolving credit facility | [1] | 129,000 | 0 | |
Letters of credit | [2] | 0 | 200 | |
Available borrowing capacity | 1,071,000 | 999,800 | ||
Revolving credit facility, unamortized deferred financing costs | $ 6,300 | $ 6,400 | ||
Revolving Credit Facility | Revolving Credit Facility | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Revolving credit facility, aggregate lender commitments | $ 1,200,000 | |||
Revolving credit facility | [1] | 143,000 | ||
Letters of credit | [2] | 0 | ||
Available borrowing capacity | $ 1,057,000 | |||
[1] | (1) Unamortized deferred financing costs attributable to the credit facility are presented as a component of the other noncurrent assets line item on the accompanying balance sheets and totaled $6.3 million and $6.4 million as of September 30, 2019 , and December 31, 2018 , respectively. These costs are being amortized over the term of the credit facility on a straight-line basis. | |||
[2] | (2) Letters of credit outstanding reduce the amount available under the credit facility on a dollar-for-dollar basis. The letter of credit outstanding as of December 31, 2018 , was released during the three months ended March 31, 2019 . |
Senior Notes (Details)
Senior Notes (Details) - USD ($) $ in Thousands | Aug. 20, 2018 | Jul. 16, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Senior Notes [Line Items] | |||||||
Principal Amount, Net of Unamortized Deferred Financing Costs | $ 2,451,886 | $ 2,451,886 | $ 2,448,439 | ||||
Loss on extinguishment of debt | 0 | $ 26,722 | 0 | $ 26,722 | |||
Accelerated unamortized deferred financing costs | 0 | 6,334 | |||||
Interest costs capitalized | $ 4,200 | $ 5,200 | $ 14,100 | $ 15,700 | |||
6.125% Senior Notes due 2022 [Member] | |||||||
Senior Notes [Line Items] | |||||||
Senior Notes, interest rate, stated percentage | 6.125% | 6.125% | |||||
Principal amount | $ 476,796 | $ 476,796 | 476,796 | ||||
Unamortized deferred financing costs | (3,170) | (3,170) | (3,921) | ||||
Principal Amount, Net of Unamortized Deferred Financing Costs | $ 473,626 | $ 473,626 | 472,875 | ||||
5.0% Senior Notes due 2024 [Member] | |||||||
Senior Notes [Line Items] | |||||||
Senior Notes, interest rate, stated percentage | 5.00% | 5.00% | |||||
Principal amount | $ 500,000 | $ 500,000 | 500,000 | ||||
Unamortized deferred financing costs | (3,996) | (3,996) | (4,688) | ||||
Principal Amount, Net of Unamortized Deferred Financing Costs | $ 496,004 | $ 496,004 | 495,312 | ||||
5.625% Senior Notes due 2025 [Member] | |||||||
Senior Notes [Line Items] | |||||||
Senior Notes, interest rate, stated percentage | 5.625% | 5.625% | |||||
Principal amount | $ 500,000 | $ 500,000 | 500,000 | ||||
Unamortized deferred financing costs | (5,130) | (5,130) | (5,808) | ||||
Principal Amount, Net of Unamortized Deferred Financing Costs | $ 494,870 | $ 494,870 | 494,192 | ||||
6.75% Senior Notes due 2026 [Member] | |||||||
Senior Notes [Line Items] | |||||||
Senior Notes, interest rate, stated percentage | 6.75% | 6.75% | |||||
Principal amount | $ 500,000 | $ 500,000 | 500,000 | ||||
Unamortized deferred financing costs | (5,780) | (5,780) | (6,407) | ||||
Principal Amount, Net of Unamortized Deferred Financing Costs | $ 494,220 | $ 494,220 | 493,593 | ||||
6.625% Senior Notes due 2027 [Member] | |||||||
Senior Notes [Line Items] | |||||||
Senior Notes, interest rate, stated percentage | 6.625% | 6.625% | |||||
Principal amount | $ 500,000 | $ 500,000 | $ 500,000 | 500,000 | |||
Unamortized deferred financing costs | (6,834) | (6,834) | (7,533) | ||||
Principal Amount, Net of Unamortized Deferred Financing Costs | 493,166 | 493,166 | 492,467 | ||||
Senior Notes issuance proceeds, net of deferred financing costs | 492,100 | ||||||
Deferred financing costs | $ 7,900 | ||||||
Senior Notes | |||||||
Senior Notes [Line Items] | |||||||
Principal amount | 2,476,796 | 2,476,796 | 2,476,796 | ||||
Unamortized deferred financing costs | (24,910) | (24,910) | (28,357) | ||||
Principal Amount, Net of Unamortized Deferred Financing Costs | $ 2,451,886 | $ 2,451,886 | $ 2,448,439 | ||||
6.50% Senior Notes Due 2021 [Member] | |||||||
Senior Notes [Line Items] | |||||||
Senior Notes, interest rate, stated percentage | 6.50% | ||||||
Total cash consideration paid to repurchase debt, including accrued interest | $ 355,900 | ||||||
6.50% Senior Notes Due 2023 [Member] | |||||||
Senior Notes [Line Items] | |||||||
Senior Notes, interest rate, stated percentage | 6.50% | 6.50% | |||||
Q3 2018 Senior Notes Transactions [Member] | |||||||
Senior Notes [Line Items] | |||||||
Total cash consideration paid to repurchase debt, including accrued interest | $ 497,800 | ||||||
Loss on extinguishment of debt | 26,700 | ||||||
Premiums paid for debt extinguishment | 20,400 | ||||||
Accelerated unamortized deferred financing costs | $ 6,300 |
Senior Convertible Notes (Detai
Senior Convertible Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Senior Convertibles Notes [Line Items] | |||||
Senior Convertible Notes, net of unamortized discount and deferred financing costs | $ 154,883 | $ 154,883 | $ 147,894 | ||
1.50% Senior Convertible Notes Due 2021 [Member] | |||||
Senior Convertibles Notes [Line Items] | |||||
Senior Convertible Notes, principal amount | $ 172,500 | $ 172,500 | 172,500 | ||
Senior Convertible Notes, interest rate, stated percentage | 1.50% | 1.50% | |||
Senior Convertible Notes, interest expense | $ 2,800 | $ 2,600 | $ 8,200 | $ 7,800 | |
Senior Convertible Notes, unamortized debt discount | (16,012) | (16,012) | (22,313) | ||
Senior Convertible Notes, unamortized deferred financing costs | (1,605) | (1,605) | (2,293) | ||
Senior Convertible Notes, net of unamortized discount and deferred financing costs | $ 154,883 | $ 154,883 | $ 147,894 |
Commitments (Details)
Commitments (Details) $ in Millions | Sep. 30, 2019USD ($) |
Drilling Rig and Completion Service Contracts Commitments [Member] | |
Commitments and Contingencies [Line Items] | |
Contractual obligation | $ 57.1 |
Early termination penalties for rig contracts | 38.1 |
Electricity Purchase Agreement [Member] | |
Commitments and Contingencies [Line Items] | |
Contractual obligation | 55.1 |
Minimum [Member] | Sand Sourcing Commitment [Member] | |
Commitments and Contingencies [Line Items] | |
Potential penalty for not meeting minimum sand sourcing requirements | 0 |
Minimum [Member] | Completion Service Commitment [Member] | |
Commitments and Contingencies [Line Items] | |
Potential penalty for not meeting minimum completion service arrangement requirements | 0 |
Maximum [Member] | Sand Sourcing Commitment [Member] | |
Commitments and Contingencies [Line Items] | |
Potential penalty for not meeting minimum sand sourcing requirements | 10 |
Maximum [Member] | Completion Service Commitment [Member] | |
Commitments and Contingencies [Line Items] | |
Potential penalty for not meeting minimum completion service arrangement requirements | $ 14.3 |
Compensation Plans_ Stock Based
Compensation Plans: Stock Based (Details) $ / shares in Units, $ in Millions | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2019shares | Sep. 30, 2018USD ($) | Jun. 30, 2018shares | Sep. 30, 2019USD ($)shares$ / shares | Sep. 30, 2018USD ($) | Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share available for grant | 4,100,000 | 4,100,000 | 4,100,000 | ||||||
Director [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares issued to directors | 96,719 | 58,572 | |||||||
Performance Shares (PSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Multiplier applied to PSU awards at settlement | 0 | 0 | 0 | ||||||
Award vesting period | 3 years | ||||||||
Stock-based compensation expense | $ | $ 2.9 | $ 3 | $ 8.6 | $ 7.7 | |||||
Unrecognized stock based compensation expense | $ | $ 19.7 | $ 19.7 | $ 19.7 | ||||||
Non-vested PSUs/RSUs | [1] | 2,117,364 | 2,117,364 | 2,117,364 | 1,711,259 | ||||
Fair value of non-vested PSUs/RSUs | $ / shares | $ 16.86 | $ 16.86 | $ 16.86 | $ 20.68 | |||||
PSUs/RSUs granted in period | [1] | 793,125 | |||||||
Fair vale of PSUs/RSUs granted in period, per share | $ / shares | $ 12.80 | ||||||||
Vested PSUs/RSUs | [1] | (346,021) | |||||||
Fair value of vested PSUs/RSUs | $ / shares | $ 26.31 | ||||||||
Forfeited PSUs/RSUs | [1] | (40,999) | |||||||
Fair value of forfeited PSUs/RSUs | $ / shares | $ 17.96 | ||||||||
PSU multiplier cap | 1 | ||||||||
Fair value of PSUs/RSUs granted in period, total | $ | $ 10.2 | ||||||||
Net shares of common stock issued upon settlement | 0 | ||||||||
Performance Shares (PSUs) | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Multiplier applied to PSU awards at settlement | 0 | 0 | 0 | ||||||
Performance Shares (PSUs) | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Multiplier applied to PSU awards at settlement | 2 | 2 | 2 | ||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 3 years | ||||||||
Stock-based compensation expense | $ | $ 2.9 | $ 3 | $ 8.4 | $ 8 | |||||
Unrecognized stock based compensation expense | $ | $ 21.4 | $ 21.4 | $ 21.4 | ||||||
Non-vested PSUs/RSUs | 1,644,372 | 1,644,372 | 1,644,372 | 1,243,163 | |||||
Fair value of non-vested PSUs/RSUs | $ / shares | $ 16.04 | $ 16.04 | $ 16.04 | $ 21.50 | |||||
PSUs/RSUs granted in period | 978,932 | ||||||||
Fair vale of PSUs/RSUs granted in period, per share | $ / shares | $ 12.36 | ||||||||
Vested PSUs/RSUs | (466,535) | ||||||||
Fair value of vested PSUs/RSUs | $ / shares | $ 21.93 | ||||||||
Forfeited PSUs/RSUs | (111,188) | ||||||||
Fair value of forfeited PSUs/RSUs | $ / shares | $ 19.94 | ||||||||
Fair value of PSUs/RSUs granted in period, total | $ | $ 12.1 | ||||||||
Number of shares represented by each RSU | 1 | 1 | 1 | ||||||
Net shares of common stock issued upon settlement | 334,399 | ||||||||
[1] | (1) The number of awards assumes a multiplier of one . The final number of shares of common stock issued may vary depending on the three -year performance multiplier which ranges from zero to two . |
Compensation Plans Employee Sto
Compensation Plans Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum employee subscription rate | 15.00% | |
Maximum employee subscription | $ 25,000 | |
Purchase price of common stock, percent | 85.00% | |
Issuance of common stock under Employee Stock Purchase Plan (Shares) | 184,079 | 100,249 |
Proceeds from issuance of common stock under the Employee Stock Purchase Plan | $ 2,000,000 | $ 1,900,000 |
Pension Benefits (Details)
Pension Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Components of Net Periodic Benefit Costs for the Pension Plans | ||||
Service cost | $ 1,395 | $ 1,683 | $ 4,186 | $ 5,048 |
Interest cost | 699 | 657 | 2,094 | 1,967 |
Expected return on plan assets that reduces periodic pension benefit cost | (393) | (466) | (1,180) | (1,397) |
Amortization of prior service cost | 4 | 4 | 13 | 13 |
Amortization of net actuarial loss | 239 | 331 | 718 | 995 |
Net periodic benefit cost | $ 1,944 | $ 2,209 | $ 5,831 | $ 6,626 |
Pension (Details)
Pension (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Pension Details [Abstract] | |
Pension plans, net gain (loss) amortization threshold | 10.00% |
Pension contributions | $ 7.2 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Anti-dilutive securities excluded from earnings per share | 0 | 2,433 | 707 | 0 | ||||
Calculation of basic and diluted earnings per share | ||||||||
Net income (loss) | $ 42,234 | $ 50,388 | $ (177,568) | $ (135,923) | $ 17,197 | $ 317,401 | $ (84,946) | $ 198,675 |
Basic weighted-average common shares outstanding | 112,804 | 112,107 | 112,441 | 111,836 | ||||
Dilutive effect of non-vested RSUs and contingent PSUs | 530 | 0 | 0 | 1,764 | ||||
Diluted weighted-average common shares outstanding | 113,334 | 112,107 | 112,441 | 113,600 | ||||
Basic net income (loss) per common share | $ 0.37 | $ (1.21) | $ (0.76) | $ 1.78 | ||||
Diluted net income (loss) per common share | 0.37 | (1.21) | (0.76) | 1.75 | ||||
1.50% Senior Convertible Notes Due 2021 [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Senior Convertible Notes, conversion price | $ 40.50 | $ 40.50 | $ 40.50 | $ 40.50 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) bbl in Thousands, BTU in Billions | Nov. 01, 2019BTU$ / Barrels$ / EnergyContentbbl | Sep. 30, 2019BTU$ / Barrels$ / EnergyContentbbl | |
NYMEX Oil Swap Contract Fourth Quarter of Current Fiscal Year [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 1,685 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 61.38 | ||
NYMEX Oil Swap Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 7,441 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 59.64 | ||
NYMEX Oil Swap Contracts [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 9,126 | ||
NYMEX Oil Collar Contract Fourth Quarter of Current Fiscal Year [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 3,168 | ||
Derivative, Weighted-Average Floor Price | $ / Barrels | 50.54 | ||
Derivative, Weighted-Average Ceiling Price | $ / Barrels | 62.49 | ||
NYMEX Oil Collar Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 6,010 | ||
Derivative, Weighted-Average Floor Price | $ / Barrels | 55 | ||
Derivative, Weighted-Average Ceiling Price | $ / Barrels | 62.95 | ||
NYMEX Oil Collar Contract, Year 3 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 329 | ||
Derivative, Weighted-Average Floor Price | $ / Barrels | 55 | ||
Derivative, Weighted-Average Ceiling Price | $ / Barrels | 56.70 | ||
NYMEX Oil Collar Contracts [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 9,507 | ||
WTI Midland NYMEX WTI [Member] | Oil Basis Swap Contract Fourth Quarter of Current Fiscal Year [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 3,338 | ||
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | $ / Barrels | [1] | (2.87) | |
WTI Midland NYMEX WTI [Member] | Oil Basis Swap Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 14,090 | ||
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | $ / Barrels | [1] | (0.73) | |
WTI Midland NYMEX WTI [Member] | Oil Basis Swap Contract, Year 3 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 3,708 | ||
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | $ / Barrels | [1] | 0.33 | |
WTI Midland NYMEX WTI [Member] | Oil Basis Swap Contract, Year 4 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 0 | ||
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | $ / Barrels | [1] | 0 | |
WTI Midland NYMEX WTI [Member] | Oil Basis Swap [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 21,136 | ||
NYMEX WTI ICE Brent [Member] | Oil Basis Swap Contract Fourth Quarter of Current Fiscal Year [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 0 | ||
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | $ / Barrels | [2] | 0 | |
NYMEX WTI ICE Brent [Member] | Oil Basis Swap Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 2,750 | ||
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | $ / Barrels | [2] | (8.03) | |
NYMEX WTI ICE Brent [Member] | Oil Basis Swap Contract, Year 3 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 3,650 | ||
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | $ / Barrels | [2] | (7.86) | |
NYMEX WTI ICE Brent [Member] | Oil Basis Swap Contract, Year 4 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 3,650 | ||
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | $ / Barrels | [2] | (7.78) | |
NYMEX WTI ICE Brent [Member] | Oil Basis Swap [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 10,050 | ||
WAHA [Member] | Gas Swaps Contract Fourth Quarter of Current Fiscal Year [Member] | |||
Derivative Financial Instruments | |||
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 1.75 | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 2,962 | ||
WAHA [Member] | Gas Swaps Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 1.70 | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 4,977 | ||
WAHA [Member] | Gas Swaps Contracts [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | [3] | 7,939 | |
IF HSC [Member] | Gas Swaps Contract Fourth Quarter of Current Fiscal Year [Member] | |||
Derivative Financial Instruments | |||
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 2.88 | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 14,433 | ||
IF HSC [Member] | Gas Swaps Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 2.87 | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 11,773 | ||
IF HSC [Member] | Gas Swaps Contracts [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | [3] | 26,206 | |
IF HSC [Member] | Gas Collar Contract Fourth Quarter of Current Fiscal Year [Member] | |||
Derivative Financial Instruments | |||
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 2.50 | ||
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 2.83 | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 4,818 | ||
IF HSC [Member] | Gas Collar Contracts [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 4,818 | ||
IF WAHA [Member] | |||
Derivative Financial Instruments | |||
Index percent of natural gas fixed swaps | 56.00% | ||
GD WAHA [Member] | |||
Derivative Financial Instruments | |||
Index percent of natural gas fixed swaps | 44.00% | ||
OPIS Ethane Purity Mont Belvieu [Member] | NGL Swaps Contract Fourth Quarter of Current Fiscal Year [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 896 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 12.36 | ||
OPIS Ethane Purity Mont Belvieu [Member] | NGL Swaps Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 711 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 11.38 | ||
OPIS Ethane Purity Mont Belvieu [Member] | NGL Swaps Contracts [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 1,607 | ||
OPIS Propane Mont Belvieu Non-TET [Member] | NGL Swaps Contract Fourth Quarter of Current Fiscal Year [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 660 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 31.60 | ||
OPIS Propane Mont Belvieu Non-TET [Member] | NGL Swaps Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 1,187 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 23.58 | ||
OPIS Propane Mont Belvieu Non-TET [Member] | NGL Swaps Contracts [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 1,847 | ||
OPIS Normal Butane Mont Belvieu Non-TET [Member] | NGL Swaps Contract Fourth Quarter of Current Fiscal Year [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 39 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 35.64 | ||
OPIS Normal Butane Mont Belvieu Non-TET [Member] | NGL Swaps Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 0 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 0 | ||
OPIS Normal Butane Mont Belvieu Non-TET [Member] | NGL Swaps Contracts [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 39 | ||
OPIS Isobutane Mont Belvieu Non-TET [Member] | NGL Swaps Contract Fourth Quarter of Current Fiscal Year [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 29 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 35.70 | ||
OPIS Isobutane Mont Belvieu Non-TET [Member] | NGL Swaps Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 0 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 0 | ||
OPIS Isobutane Mont Belvieu Non-TET [Member] | NGL Swaps Contracts [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 29 | ||
OPIS Natural Gasoline Mont Belvieu Non-TET [Member] | NGL Swaps Contract Fourth Quarter of Current Fiscal Year [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 50 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 50.93 | ||
OPIS Natural Gasoline Mont Belvieu Non-TET [Member] | NGL Swaps Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 0 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 0 | ||
OPIS Natural Gasoline Mont Belvieu Non-TET [Member] | NGL Swaps Contracts [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 50 | ||
Subsequent Event [Member] | NYMEX Oil Swap Contract, Third Quarter of Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 900 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 51.61 | ||
Subsequent Event [Member] | IF HSC [Member] | Gas Swaps Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 2.28 | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 9,725 | ||
Subsequent Event [Member] | IF WAHA [Member] | Gas Swaps Contract,Year 2 and Year 3 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 1.06 | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 12,229 | ||
Subsequent Event [Member] | OPIS Propane Mont Belvieu Non-TET [Member] | NGL Swaps Contract, Year 2 [Member] | |||
Derivative Financial Instruments | |||
Derivative, Nonmonetary Notional Amount, Volume | 500 | ||
Derivative, Swap Type, Weighted-Average Contract Price | $ / Barrels | 19.27 | ||
[1] | (1) Represents the price differential between WTI Midland (Midland, Texas) and NYMEX WTI (Cushing, Oklahoma). | ||
[2] | (2) Represents the price differential between NYMEX WTI (Cushing, Oklahoma) and ICE Brent (North Sea). | ||
[3] | (1) The Company has natural gas swaps in place that settle against Inside FERC Houston Ship Channel (“IF HSC”), Inside FERC West Texas (“IF WAHA”), and Platt’s Gas Daily West Texas (“GD WAHA”). As of September 30, 2019 , WAHA volumes were comprised of 56 percent IF WAHA and 44 percent GD WAHA . |
Derivative Financial Instrume_4
Derivative Financial Instruments Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | ||
Fair value of derivative assets and liabilities | ||||
Derivative, fair value, net | $ 137,900 | $ 158,300 | ||
Derivative assets, current | 143,142 | 175,130 | ||
Derivative assets, noncurrent | 38,571 | 58,499 | ||
Total derivative assets | 181,713 | 233,629 | ||
Derivative liabilities, current | 37,798 | 62,853 | ||
Derivatives liabilities, noncurrent | 6,014 | 12,496 | ||
Total derivative liabilities | 43,812 | 75,349 | ||
Derivative asset, amounts not offset in the accompanying balance sheets | (43,812) | (56,041) | ||
Derivative liabilities, amounts not offset in the accompanying balance sheets | 43,812 | 56,041 | ||
Derivative asset, fair value, net amounts | 137,901 | 177,588 | ||
Derivative liabilities, fair value, net amounts | 0 | (19,308) | ||
Not Designated as Hedging Instrument [Member] | ||||
Fair value of derivative assets and liabilities | ||||
Derivative assets, current | 143,142 | 175,130 | ||
Derivative assets, noncurrent | 38,571 | 58,499 | ||
Derivative liabilities, current | 37,798 | 62,853 | ||
Derivatives liabilities, noncurrent | 6,014 | 12,496 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | ||||
Fair value of derivative assets and liabilities | ||||
Total derivative assets | 181,713 | [1] | 233,629 | [2] |
Total derivative liabilities | $ 43,812 | [1] | $ 75,349 | [2] |
[1] | (1) This represents a financial asset or liability that is measured at fair value on a recurring basis. | |||
[2] | (1) This represents a financial asset or liability that is measured at fair value on a recurring basis. |
Derivative Financial Instrume_5
Derivative Financial Instruments Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Derivative settlement (gain) loss | $ (24,722) | $ 40,718 | $ (23,843) | $ 101,911 |
Net derivative (gain) loss | (100,889) | 178,026 | (3,463) | 249,304 |
Oil Contracts [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Derivative settlement (gain) loss | 2,246 | 16,798 | 14,304 | 61,976 |
Net derivative (gain) loss | (83,984) | 110,413 | 67,261 | 146,781 |
Gas Contracts [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Derivative settlement (gain) loss | (12,210) | 802 | (13,744) | (4,851) |
Net derivative (gain) loss | (4,228) | 4,309 | (36,337) | 21,299 |
NGL Contracts [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Derivative settlement (gain) loss | (14,758) | 23,118 | (24,403) | 44,786 |
Net derivative (gain) loss | $ (12,677) | $ 63,304 | $ (34,387) | $ 81,224 |
Credit Facility and Derivative
Credit Facility and Derivative Counterparties (Details) | Sep. 30, 2019 |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Percentage of proved property secured for credit facility borrowing | 85.00% |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | ||
Assets | ||||
Derivatives | $ 181,713 | $ 233,629 | ||
Liabilities | ||||
Derivatives | 43,812 | 75,349 | ||
Not Designated as Hedging Instrument [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Assets | ||||
Derivatives | 0 | [1] | 0 | [2] |
Liabilities | ||||
Derivatives | 0 | [1] | 0 | [2] |
Not Designated as Hedging Instrument [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Assets | ||||
Derivatives | 181,713 | [1] | 233,629 | [2] |
Liabilities | ||||
Derivatives | 43,812 | [1] | 75,349 | [2] |
Not Designated as Hedging Instrument [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Assets | ||||
Derivatives | 0 | [1] | 0 | [2] |
Liabilities | ||||
Derivatives | $ 0 | [1] | $ 0 | [2] |
[1] | (1) This represents a financial asset or liability that is measured at fair value on a recurring basis. | |||
[2] | (1) This represents a financial asset or liability that is measured at fair value on a recurring basis. |
Proved and Unproved Oil and Gas
Proved and Unproved Oil and Gas Properties and Other Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | ||||
Abandonment and impairment of unproved properties | $ 6,337 | $ 9,055 | $ 25,092 | $ 26,615 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Aug. 20, 2018 |
6.125% Senior Notes due 2022 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Principal amount | $ 476,796 | $ 476,796 | |
Long-term Debt, Fair Value | $ 459,321 | 452,336 | |
Senior Notes, interest rate, stated percentage | 6.125% | ||
5.0% Senior Notes due 2024 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Principal amount | $ 500,000 | 500,000 | |
Long-term Debt, Fair Value | $ 448,950 | 439,265 | |
Senior Notes, interest rate, stated percentage | 5.00% | ||
5.625% Senior Notes due 2025 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Principal amount | $ 500,000 | 500,000 | |
Long-term Debt, Fair Value | $ 431,335 | 436,460 | |
Senior Notes, interest rate, stated percentage | 5.625% | ||
6.75% Senior Notes due 2026 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Principal amount | $ 500,000 | 500,000 | |
Long-term Debt, Fair Value | $ 440,000 | 448,305 | |
Senior Notes, interest rate, stated percentage | 6.75% | ||
6.625% Senior Notes due 2027 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Principal amount | $ 500,000 | 500,000 | $ 500,000 |
Long-term Debt, Fair Value | $ 432,500 | 442,500 | |
Senior Notes, interest rate, stated percentage | 6.625% | ||
1.50% Senior Convertible Notes Due 2021 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Principal amount | $ 172,500 | 172,500 | |
Long-term Debt, Fair Value | $ 156,706 | $ 158,614 | |
Senior Notes, interest rate, stated percentage | 1.50% |
Lease Parameter (Details)
Lease Parameter (Details) | Sep. 30, 2019 |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term | 3 years |
Optional extension period | 10 years |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 7 years |
Components of total lease cost
Components of total lease cost (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | |
Lessee Disclosure [Abstract] | ||||
Total lease cost | [1] | $ 107,308 | $ 422,374 | |
Operating lease cost | 8,344 | 28,802 | ||
Short-term lease cost | [2] | 72,874 | 309,876 | |
Variable lease cost | [3] | $ 26,090 | 83,696 | |
Operating cash flows from operating leases | 9,029 | |||
Investing cash flows from operating leases | 20,256 | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 50,000 | $ 24,014 | ||
[1] | (3) Lease costs are either expensed on the accompanying statements of operations or capitalized on the accompanying balance sheets depending on the nature and use of the underlying ROU asset. | |||
[2] | (1) Costs associated with short-term lease agreements relate primarily to operational activities where underlying lease terms are less than one year. This amount is significant as it includes drilling and completion activities and field equipment rentals, most of which are contracted for 12 months or less. It is expected that this amount will fluctuate primarily with the number of drilling rigs and completion crews the Company is operating under short-term agreements. | |||
[3] | (2) Variable lease payments include additional payments made that were not included in the initial measurement of the ROU asset and corresponding liability for lease agreements with terms longer than 12 months. Variable lease payments relate to the actual volumes transported under certain midstream agreements, actual usage associated with drilling rigs and completion crews, and variable utility costs associated with the Company’s leased office space. Fluctuations in variable lease payments are driven by actual volumes delivered and the number of drilling rigs and completion crews operating under long-term agreements. |
Operating lease liability matur
Operating lease liability maturities (Details) $ in Thousands | Sep. 30, 2019USD ($) | |
Lessee Disclosure [Abstract] | ||
Operating lease liability payments, due 2019 (remaining after September 30, 2019) | $ 6,871 | |
Operating lease liability payments, due 2020 | 20,427 | |
Operating lease liability payments, due 2021 | 11,982 | |
Operating lease liability payments, due 2022 | 5,712 | |
Operating lease liability payments, due 2023 | 3,572 | |
Operating lease liability payments, due thereafter | 3,721 | |
Total lease payments | 52,285 | |
Imputed interest | (5,098) | [1] |
Total operating lease liability | $ 47,187 | |
Weighted-average discount rate | 6.60% | |
[1] | (1) The weighted-average discount rate used to determine the operating lease liability as of September 30, 2019 was 6.6 percent . |
Balance Sheet information relat
Balance Sheet information related to operating leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Lessee Disclosure [Abstract] | |
Other noncurrent assets | $ 44,438 |
Other current liabilities | 21,804 |
Other noncurrent liabilities | $ 25,384 |