Cover page
Cover page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | 1700 Lincoln Street, Suite 3200 | |
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, $0.01 par value | |
Trading Symbol | SM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 116,313,887 | |
Entity Central Index Key | 0000893538 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share data) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 401,980 | $ 444,998 |
Accounts receivable | 264,511 | 233,297 |
Derivative assets | 25,524 | 48,677 |
Prepaid expenses and other | 10,537 | 10,231 |
Total current assets | 702,552 | 737,203 |
Property and equipment (successful efforts method): | ||
Proved oil and gas properties | 11,169,443 | 10,258,368 |
Accumulated depletion, depreciation, and amortization | (6,680,485) | (6,188,147) |
Unproved oil and gas properties, net of valuation allowance of $36,286 and $38,008, respectively | 526,085 | 487,192 |
Wells in progress | 236,234 | 287,267 |
Other property and equipment, net of accumulated depreciation of $59,133 and $56,512, respectively | 41,017 | 38,099 |
Total property and equipment, net | 5,292,294 | 4,882,779 |
Noncurrent assets: | ||
Derivative assets | 5,294 | 24,465 |
Other noncurrent assets | 78,430 | 71,592 |
Total noncurrent assets | 83,724 | 96,057 |
Total assets | 6,078,570 | 5,716,039 |
Current liabilities: | ||
Accounts payable and accrued expenses | 540,459 | 532,289 |
Derivative liabilities | 43,152 | 56,181 |
Other current liabilities | 15,473 | 10,114 |
Total current liabilities | 599,084 | 598,584 |
Noncurrent liabilities: | ||
Revolving credit facility | 0 | 0 |
Senior Notes, net | 1,574,553 | 1,572,210 |
Asset retirement obligations | 115,271 | 108,233 |
Deferred income taxes | 324,440 | 280,811 |
Derivative liabilities | 4,595 | 1,142 |
Other noncurrent liabilities | 56,334 | 69,601 |
Total noncurrent liabilities | 2,075,193 | 2,031,997 |
Commitments and contingencies (note 6) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value - authorized: 200,000,000 shares; issued and outstanding: 116,313,887 and 121,931,676 shares, respectively | 1,163 | 1,219 |
Additional paid-in capital | 1,581,110 | 1,779,703 |
Retained earnings | 1,826,002 | 1,308,558 |
Accumulated other comprehensive loss | (3,982) | (4,022) |
Total stockholders’ equity | 3,404,293 | 3,085,458 |
Total liabilities and stockholders’ equity | $ 6,078,570 | $ 5,716,039 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (PARENTHETICAL) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Unproved oil and gas properties, valuation allowance | $ 36,286 | $ 38,008 |
Other property and equipment, accumulated depreciation | $ 59,133 | $ 56,512 |
Common Stock, Par Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 116,313,887 | 121,931,676 |
Common Stock, Shares Outstanding | 116,313,887 | 121,931,676 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating revenues and other income: | ||||
Oil, gas, and NGL production revenue | $ 639,699 | $ 827,558 | $ 1,757,032 | $ 2,676,656 |
Other operating income | 1,202 | 7,893 | 8,128 | 10,673 |
Total operating revenues and other income | 640,901 | 835,451 | 1,765,160 | 2,687,329 |
Operating expenses: | ||||
Oil, gas, and NGL production expense | 138,264 | 159,961 | 426,200 | 470,245 |
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | 189,353 | 145,865 | 501,374 | 460,169 |
Exploration | 10,245 | 14,203 | 43,633 | 44,117 |
General and administrative | 29,255 | 28,428 | 84,424 | 81,715 |
Net derivative (gain) loss | 75,355 | (137,577) | 12,352 | 385,180 |
Other operating expense, net | 2,832 | 2,290 | 20,182 | 9,080 |
Total operating expenses | 445,304 | 213,170 | 1,088,165 | 1,450,506 |
Income from operations | 195,597 | 622,281 | 676,995 | 1,236,823 |
Interest expense | (23,106) | (22,825) | (67,713) | (97,708) |
Interest income | 4,106 | 1,546 | 13,802 | 2,080 |
Loss on extinguishment of debt | 0 | 0 | 0 | (67,605) |
Other non-operating expense, net | (233) | (383) | (696) | (1,150) |
Income before income taxes | 176,364 | 600,619 | 622,388 | 1,072,440 |
Income tax (expense) benefit | 45,979 | (119,379) | (51,619) | (218,951) |
Net income | $ 222,343 | $ 481,240 | $ 570,769 | $ 853,489 |
Basic weighted-average common shares outstanding | 117,823 | 123,195 | 119,589 | 122,318 |
Diluted weighted-average common shares outstanding | 118,328 | 124,279 | 120,165 | 124,233 |
Basic net income per common share | $ 1.89 | $ 3.91 | $ 4.77 | $ 6.98 |
Diluted net income per common share | 1.88 | 3.87 | 4.75 | 6.87 |
Dividends declared per common share | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.16 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 222,343 | $ 481,240 | $ 570,769 | $ 853,489 |
Other comprehensive income, net of tax: | ||||
Pension liability adjustment | 14 | 182 | 40 | 546 |
Total other comprehensive income, net of tax | 14 | 182 | 40 | 546 |
Total comprehensive income | $ 222,357 | $ 481,422 | $ 570,809 | $ 854,035 |
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 | $ 0.01 | ||||
Balances, Common Stock, Shares Outstanding, Beginning at Dec. 31, 2021 | 121,862,248 | ||||
Balances, Total Stockholders' Equity, Beginning at Dec. 31, 2021 | $ 2,063,131 | $ 1,219 | $ 1,840,228 | $ 234,533 | $ (12,849) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 48,764 | 48,764 | |||
Other comprehensive income | 182 | 182 | |||
Cash dividends declared | (1,218) | (1,218) | |||
Issuance of common stock upon vesting of RSUs and settlement of PSUs, net of shares used for tax withholdings (Shares) | 1,929 | ||||
Issuance of common stock upon vesting of RSUs and settlement of PSUs, net of shares used for tax withholdings (Value) | (24) | (24) | |||
Stock-based compensation expense (Value) | 4,274 | 4,274 | |||
Balances, Common Stock, Shares Outstanding, Ending at Mar. 31, 2022 | 121,864,177 | ||||
Balances, Total Stockholders' Equity, Ending at Mar. 31, 2022 | $ 2,115,109 | $ 1,219 | 1,844,478 | 282,079 | (12,667) |
Cash dividends declared per share | $ 0.16 | ||||
Balances, Common Stock, Shares Outstanding, Beginning at Dec. 31, 2021 | 121,862,248 | ||||
Balances, Total Stockholders' Equity, Beginning at Dec. 31, 2021 | $ 2,063,131 | $ 1,219 | 1,840,228 | 234,533 | (12,849) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 853,489 | ||||
Other comprehensive income | $ 546 | ||||
Stock Repurchased and Retired During Period (Shares) | (453,000) | ||||
Balances, Common Stock, Shares Outstanding, Ending at Sep. 30, 2022 | 122,796,046 | ||||
Balances, Total Stockholders' Equity, Ending at Sep. 30, 2022 | $ 2,867,662 | $ 1,228 | 1,810,352 | 1,068,385 | (12,303) |
Balances, Common Stock, Shares Outstanding, Beginning at Mar. 31, 2022 | 121,864,177 | ||||
Balances, Total Stockholders' Equity, Beginning at Mar. 31, 2022 | 2,115,109 | $ 1,219 | 1,844,478 | 282,079 | (12,667) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 323,485 | 323,485 | |||
Other comprehensive income | 182 | 182 | |||
Issuance of common stock under Employee Stock Purchase Plan (Shares) | 65,634 | ||||
Issuance of common stock under Employee Stock Purchase Plan (Value) | 1,645 | $ 1 | 1,644 | ||
Stock-based compensation expense (Shares) | 29,471 | ||||
Stock-based compensation expense (Value) | 4,479 | 4,479 | |||
Balances, Common Stock, Shares Outstanding, Ending at Jun. 30, 2022 | 121,959,282 | ||||
Balances, Total Stockholders' Equity, Ending at Jun. 30, 2022 | $ 2,444,900 | $ 1,220 | 1,850,601 | 605,564 | (12,485) |
Cash dividends declared per share | $ 0.15 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 481,240 | 481,240 | |||
Other comprehensive income | 182 | 182 | |||
Cash dividends declared | (18,419) | (18,419) | |||
Issuance of common stock upon vesting of RSUs and settlement of PSUs, net of shares used for tax withholdings (Shares) | 1,289,498 | ||||
Issuance of common stock upon vesting of RSUs and settlement of PSUs, net of shares used for tax withholdings (Value) | (25,105) | $ 13 | (25,118) | ||
Stock-based compensation expense (Value) | $ 5,105 | 5,105 | |||
Stock Repurchased and Retired During Period (Shares) | (453,000) | (452,734) | |||
Stock Repurchased and Retired During Period (Value) | $ (20,241) | $ (5) | (20,236) | ||
Balances, Common Stock, Shares Outstanding, Ending at Sep. 30, 2022 | 122,796,046 | ||||
Balances, Total Stockholders' Equity, Ending at Sep. 30, 2022 | $ 2,867,662 | $ 1,228 | 1,810,352 | 1,068,385 | (12,303) |
Cash dividends declared per share | $ 0.15 | ||||
Balances, Common Stock, Shares Outstanding, Beginning at Dec. 31, 2022 | 121,931,676 | 121,931,676 | |||
Balances, Total Stockholders' Equity, Beginning at Dec. 31, 2022 | $ 3,085,458 | $ 1,219 | 1,779,703 | 1,308,558 | (4,022) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 198,552 | 198,552 | |||
Other comprehensive income | 13 | 13 | |||
Cash dividends declared | (18,078) | (18,078) | |||
Stock-based compensation expense (Value) | 4,318 | 4,318 | |||
Stock Repurchased and Retired During Period (Shares) | (1,413,758) | ||||
Stock Repurchased and Retired During Period (Value) | (40,468) | $ (14) | (40,454) | ||
Balances, Common Stock, Shares Outstanding, Ending at Mar. 31, 2023 | 120,517,918 | ||||
Balances, Total Stockholders' Equity, Ending at Mar. 31, 2023 | $ 3,229,795 | $ 1,205 | 1,743,567 | 1,489,032 | (4,009) |
Cash dividends declared per share | $ 0.45 | ||||
Balances, Common Stock, Shares Outstanding, Beginning at Dec. 31, 2022 | 121,931,676 | 121,931,676 | |||
Balances, Total Stockholders' Equity, Beginning at Dec. 31, 2022 | $ 3,085,458 | $ 1,219 | 1,779,703 | 1,308,558 | (4,022) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 570,769 | ||||
Other comprehensive income | $ 40 | ||||
Stock Repurchased and Retired During Period (Shares) | (6,316,000) | ||||
Balances, Common Stock, Shares Outstanding, Ending at Sep. 30, 2023 | 116,313,887 | 116,313,887 | |||
Balances, Total Stockholders' Equity, Ending at Sep. 30, 2023 | $ 3,404,293 | $ 1,163 | 1,581,110 | 1,826,002 | (3,982) |
Cash dividends declared per share | $ 0.15 | ||||
Balances, Common Stock, Shares Outstanding, Beginning at Mar. 31, 2023 | 120,517,918 | ||||
Balances, Total Stockholders' Equity, Beginning at Mar. 31, 2023 | $ 3,229,795 | $ 1,205 | 1,743,567 | 1,489,032 | (4,009) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 149,874 | 149,874 | |||
Other comprehensive income | 13 | 13 | |||
Cash dividends declared | (17,704) | (17,704) | |||
Issuance of common stock under Employee Stock Purchase Plan (Shares) | 68,210 | ||||
Issuance of common stock under Employee Stock Purchase Plan (Value) | 1,816 | $ 1 | 1,815 | ||
Issuance of common stock upon vesting of RSUs and settlement of PSUs, net of shares used for tax withholdings (Shares) | 774 | ||||
Issuance of common stock upon vesting of RSUs and settlement of PSUs, net of shares used for tax withholdings (Value) | (7) | (7) | |||
Stock-based compensation expense (Shares) | 56,872 | ||||
Stock-based compensation expense (Value) | 4,163 | $ 1 | 4,162 | ||
Stock Repurchased and Retired During Period (Shares) | (2,550,706) | ||||
Stock Repurchased and Retired During Period (Value) | (69,483) | $ (26) | (69,457) | ||
Common Stock, Other (Shares) | 19,037 | ||||
Common Stock, Other (Value) | 0 | ||||
Balances, Common Stock, Shares Outstanding, Ending at Jun. 30, 2023 | 118,112,105 | ||||
Balances, Total Stockholders' Equity, Ending at Jun. 30, 2023 | $ 3,298,467 | $ 1,181 | 1,680,080 | 1,621,202 | (3,996) |
Cash dividends declared per share | $ 0.15 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 222,343 | 222,343 | |||
Other comprehensive income | 14 | 14 | |||
Cash dividends declared | (17,543) | (17,543) | |||
Issuance of common stock under Employee Stock Purchase Plan (Shares) | (18) | ||||
Issuance of common stock under Employee Stock Purchase Plan (Value) | 0 | ||||
Issuance of common stock upon vesting of RSUs and settlement of PSUs, net of shares used for tax withholdings (Shares) | 553,442 | ||||
Issuance of common stock upon vesting of RSUs and settlement of PSUs, net of shares used for tax withholdings (Value) | (7,875) | $ 6 | (7,881) | ||
Stock-based compensation expense (Value) | $ 6,038 | 6,038 | |||
Stock Repurchased and Retired During Period (Shares) | (2,352,000) | (2,351,642) | |||
Stock Repurchased and Retired During Period (Value) | $ (97,151) | $ (24) | (97,127) | ||
Balances, Common Stock, Shares Outstanding, Ending at Sep. 30, 2023 | 116,313,887 | 116,313,887 | |||
Balances, Total Stockholders' Equity, Ending at Sep. 30, 2023 | $ 3,404,293 | $ 1,163 | $ 1,581,110 | $ 1,826,002 | $ (3,982) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Cash flows from operating activities: | |||||
Net income | $ 222,343 | $ 481,240 | $ 570,769 | $ 853,489 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | 189,353 | 145,865 | 501,374 | 460,169 | |
Stock-based compensation expense | 14,519 | 13,858 | |||
Net derivative loss | 75,355 | (137,577) | 12,352 | 385,180 | |
Derivative settlement gain (loss) | 20,398 | (595,080) | |||
Amortization of debt discount and deferred financing costs | 4,114 | 8,910 | |||
Loss on extinguishment of debt | 0 | 0 | 0 | 67,605 | |
Deferred income taxes | (51,075) | 110,048 | 43,171 | 202,996 | |
Other, net | (11,489) | 14,134 | |||
Net change in working capital | (57,329) | (13,230) | |||
Net cash provided by operating activities | 1,097,879 | 1,398,031 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (766,756) | (591,846) | |||
Acquisition of proved and unproved oil and gas properties | (109,318) | (7) | |||
Other, net | 657 | (589) | |||
Net cash used in investing activities | (875,417) | (592,442) | |||
Cash flows from financing activities: | |||||
Cash paid to repurchase Senior Notes | 0 | (584,946) | |||
Repurchase of common stock | (205,246) | (20,241) | |||
Net proceeds from sale of common stock | 1,815 | 1,645 | |||
Dividends paid | (54,167) | (1,218) | |||
Other, net | (7,882) | (35,110) | |||
Net cash used in financing activities | (265,480) | (639,870) | |||
Net change in cash, cash equivalents, and restricted cash | (43,018) | 165,719 | |||
Cash, cash equivalents, and restricted cash at beginning of period | 444,998 | 332,716 | |||
Cash, cash equivalents, and restricted cash at end of period | $ 401,980 | $ 498,435 | 401,980 | 498,435 | |
Supplemental Cash Flow Information - Operating activities: | |||||
Cash paid for interest, net of capitalized interest | (77,514) | (125,668) | |||
Income Taxes Paid, Net | (6,176) | (10,506) | |||
Supplemental Cash Flow Information - Investing activities: | |||||
Changes in capital expenditure accruals and other | $ 35,683 | 50,590 | |||
Supplemental Cash Flow Information - Non-cash Financing Activities | |||||
Non-cash financing activities (1) | [1] | ||||
[1] (1) Please refer to Note 5 - Long-Term Debt for discussion of the debt transactions executed during the nine months ended September 30, 2022. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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 oil, gas, and NGLs in the state of Texas. 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 2022 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, 2023, and through the filing of this report. Additionally, certain prior period amounts have been reclassified to conform to current period presentation in the accompanying unaudited condensed consolidated financial statements. Significant Accounting Policies The significant accounting policies followed by the Company are set forth in Note 1 - Summary of Significant Accounting Policies in the 2022 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 2022 Form 10-K . Recently Issued Accounting Standards In October 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”) . ASU 2023-06 was issued to modify the disclosure or presentation requirements of a variety of topics in the codification. The effective date for each amendment will be the date on which the Securities and Exchange Commission’s (“SEC”) removal of the related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company is evaluating the impact of ASU 2023-06 on its consolidated financial statements and related disclosures but does not expect the impact to be material. As of September 30, 2023, and through the filing of this report, no other new accounting standards have been issued and not yet adopted that are applicable to the Company and that would have a material effect on the Company’s unaudited condensed consolidated financial statements and related disclosures. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2023 | |
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. Oil, gas, and NGL production revenue presented within the accompanying unaudited condensed consolidated statements of operations (“accompanying statements of operations”) reflects 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 areas for the three and nine months ended September 30, 2023, and 2022: Midland Basin South Texas Total Three Months Ended Three Months Ended Three Months Ended 2023 2022 2023 2022 2023 2022 (in thousands) Oil production revenue $ 369,858 $ 420,838 $ 129,376 $ 105,095 $ 499,234 $ 525,933 Gas production revenue 45,215 123,912 36,592 110,641 81,807 234,553 NGL production revenue 175 315 58,483 66,757 58,658 67,072 Total $ 415,248 $ 545,065 $ 224,451 $ 282,493 $ 639,699 $ 827,558 Relative percentage 65 % 66 % 35 % 34 % 100 % 100 % Midland Basin South Texas Total Nine Months Ended Nine Months Ended Nine Months Ended 2023 2022 2023 2022 2023 2022 (in thousands) Oil production revenue $ 992,867 $ 1,449,660 $ 350,598 $ 350,594 $ 1,343,465 $ 1,800,254 Gas production revenue 131,804 363,728 113,461 282,201 245,265 645,929 NGL production revenue 563 597 167,739 229,876 168,302 230,473 Total $ 1,125,234 $ 1,813,985 $ 631,798 $ 862,671 $ 1,757,032 $ 2,676,656 Relative percentage 64 % 68 % 36 % 32 % 100 % 100 % 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 differs 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 by the Company prior to transfer of control are recorded within the oil, gas, and NGL production expense line item on the accompanying statements of operations. When control is transferred at or near the wellhead, sales are based on a wellhead market price that may be affected by fees and other deductions incurred by the purchaser subsequent to the transfer of control. 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 unaudited condensed consolidated balance sheets (“accompanying balance sheets”) until payment is received. The accounts receivable balances from contracts with customers within the accompanying balance sheets as of September 30, 2023, and December 31, 2022, were $217.3 million and $184.5 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. The time period between production and satisfaction of performance obligations is generally less than one day, therefore there are no material unsatisfied or partially unsatisfied performance obligations at the end of the reporting period. Please refer to Note 1 - Summary of Significant Accounting Policies and Note 2 - Revenue from Contracts with Customers in the 2022 Form 10-K for more information regarding the Company’s revenue recognition policy and the types of contracts under which oil, gas, and NGL production revenue is generated. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure | Note 3 - Equity Stock Repurchase Program During 2022, the Company’s Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $500.0 million in aggregate value of its common stock through December 31, 2024 (“Stock Repurchase Program”). The Stock Repurchase Program permits the Company to repurchase shares of its common stock from time to time in open market transactions, through privately negotiated transactions or by other means in accordance with federal securities laws and subject to certain provisions of the Credit Agreement and the indentures governing the Senior Notes, as defined in Note 5 - Long-Term Debt . Please refer to Note 3 - Equity in the 2022 Form 10-K for additional information regarding the Company’s Stock Repurchase Program. The following table presents the Company’s common stock repurchase activity for the three and nine months ended September 30, 2023, and 2022: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 (in thousands, except per share data) Shares of common stock repurchased (1) 2,352 453 6,316 453 Weighted-average price per share (2) $ 40.97 $ 44.69 $ 32.48 $ 44.69 Cost of shares of common stock repurchased (2) (3) $ 96,336 $ 20,232 $ 205,120 $ 20,232 ____________________________________________ (1) All repurchased shares of the Company’s common stock were retired upon repurchase. (2) Amounts exclude excise taxes, commissions, and fees. (3) Amounts may not calculate due to rounding. As of September 30, 2023, $237.7 million remained available for repurchases of the Company’s outstanding common stock under the Stock Repurchase Program. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4 - Income Taxes The provision for income taxes for the three and nine months ended September 30, 2023, and 2022, consisted of the following: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 (in thousands) Current portion of income tax expense: Federal $ (3,923) $ (7,014) $ (6,732) $ (11,287) State (1,173) (2,317) (1,716) (4,668) Deferred portion of income tax (expense) benefit 51,075 (110,048) (43,171) (202,996) Income tax (expense) benefit $ 45,979 $ (119,379) $ (51,619) $ (218,951) Effective tax rate (26.1) % 19.9 % 8.3 % 20.4 % Income tax expense or benefit differs from the amount that would be calculated 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 deduction limitations on the compensation of covered individuals, benefits from qualifying credits, changes in valuation allowances, the cumulative effect of other smaller permanent differences, and can also reflect the cumulative effect of an enacted tax rate change, in the period of enactment, on the Company’s net deferred tax asset and liability balances. The quarterly effective tax rate and the resulting income tax expense or benefit can also be affected by the proportional effects of forecast net income or loss and the correlative effect on the valuation allowance for each of the periods presented in the table above. The Company commissioned a multi-year research and development (“R&D”) credit study in 2022, which was completed during the third quarter of 2023, and resulted in a favorable adjustment to the Company’s effective tax rate and a reduction of the Company’s 2022 and expected 2023 tax obligations. After utilizing a portion of the credits for the 2022 and 2023 tax years, the recorded net carryover R&D credit, as of September 30, 2023, expected to be utilized in future periods totaled $52.3 million. For all years before 2019, 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, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 5 - Long-Term Debt Credit Agreement The Company’s Credit Agreement provides for a senior secured revolving credit facility with a maximum loan amount of $3.0 billion. As of September 30, 2023, the borrowing base and aggregate lender commitments under the Credit Agreement were $2.5 billion and $1.25 billion, respectively. Subsequent to September 30, 2023, the semi-annual borrowing base redetermination was completed, which reaffirmed both the Company’s borrowing base and aggregate lender commitments at existing amounts. The next scheduled borrowing base redetermination date is April 1, 2024. The Credit Agreement is scheduled to mature on the earlier of (a) August 2, 2027 (“Stated Maturity Date”), or (b) 91 days prior to the maturity date of any of the Company’s outstanding Senior Notes, as defined below, to the extent that, on or before such date, the respective Senior Notes have not been repaid, exchanged, repurchased, refinanced, or otherwise redeemed in full, and, if refinanced or exchanged, with a scheduled maturity date that is not earlier than at least 180 days after the Stated Maturity Date. Interest and commitment fees associated with the revolving 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 2022 Form 10-K . At the Company’s election, borrowings under the Credit Agreement may be in the form of Secured Overnight Financing Rate (“SOFR”), Alternate Base Rate (“ABR”), or Swingline loans. SOFR loans accrue interest at SOFR 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. 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 26, 2023, September 30, 2023, and December 31, 2022: As of October 26, 2023 As of September 30, 2023 As of December 31, 2022 (in thousands) Revolving credit facility (1) $ — $ — $ — Letters of credit (2) 2,500 2,500 6,000 Available borrowing capacity 1,247,500 1,247,500 1,244,000 Total aggregate lender commitment amount $ 1,250,000 $ 1,250,000 $ 1,250,000 ____________________________________________ (1) Unamortized deferred financing costs attributable to the revolving credit facility are presented as a component of the other noncurrent assets line item on the accompanying balance sheets and totaled $9.1 million and $10.8 million as of September 30, 2023, and December 31, 2022, respectively. These costs are being amortized over the term of the revolving credit facility on a straight-line basis. (2) Letters of credit outstanding reduce the amount available under the revolving credit facility on a dollar-for-dollar basis. Senior Notes The Company’s Senior Notes, net line item on the accompanying balance sheets as of September 30, 2023, and December 31, 2022, consisted of the following (collectively referred to as “Senior Notes”): As of September 30, 2023 As of December 31, 2022 Principal Amount Unamortized Deferred Financing Costs Principal Amount, Net Principal Amount Unamortized Deferred Financing Costs Principal Amount, Net (in thousands) 5.625% Senior Notes due 2025 $ 349,118 $ 1,054 $ 348,064 $ 349,118 $ 1,528 $ 347,590 6.75% Senior Notes due 2026 419,235 2,044 417,191 419,235 2,569 416,666 6.625% Senior Notes due 2027 416,791 2,589 414,202 416,791 3,172 413,619 6.5% Senior Notes due 2028 400,000 4,904 395,096 400,000 5,665 394,335 Total $ 1,585,144 $ 10,591 $ 1,574,553 $ 1,585,144 $ 12,934 $ 1,572,210 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. The Company may redeem some or all of its Senior Notes prior to their maturity at redemption prices that may include a premium, plus accrued and unpaid interest as described in the indentures governing the Senior Notes. On February 14, 2022, the Company redeemed the remaining $104.8 million of aggregate principal amount outstanding of its 5.0% Senior Notes due 2024 (“2024 Senior Notes”), with cash on hand, pursuant to the terms of the indenture governing the 2024 Senior Notes which provided for a redemption price equal to 100 percent of the principal amount of the 2024 Senior Notes on the date of redemption, plus accrued and unpaid interest. The Company canceled all redeemed 2024 Senior Notes upon settlement. Please refer to Note 5 - Long-Term Debt in the 2022 Form 10-K for additional detail on the Company’s Senior Notes. Senior Secured Notes On June 17, 2022, the Company redeemed all of the $446.7 million of aggregate principal amount outstanding of its 10.0% Senior Secured Notes due 2025 (“2025 Senior Secured Notes”), with cash on hand, at a redemption price equal to 107.5 percent of the principal amount outstanding on the date of the redemption, plus accrued and unpaid interest. Upon redemption, the Company recorded a net loss on extinguishment of debt of $67.2 million, which included $33.5 million of premium paid, $26.3 million of accelerated expense recognition of the remaining unamortized debt discount, and $7.4 million of accelerated expense recognition of the remaining unamortized deferred financing costs. The Company canceled all redeemed 2025 Senior Secured Notes upon settlement. Covenants The Company is subject to certain financial and non-financial covenants under the Credit Agreement and the indentures governing the Senior Notes that, among other terms, limit the Company’s ability to incur additional indebtedness, make restricted payments including dividends, sell assets, create liens that secure debt, enter into transactions with affiliates, and merge or consolidate with other entities. The Company was in compliance with all financial and non-financial covenants as of September 30, 2023, and through the filing of this report. Please refer to Note 5 - Long-Term Debt in the 2022 Form 10-K for additional detail on the Company’s covenants under the Credit Agreement and indentures governing the Senior Notes. Capitalized Interest Capitalized interest costs for the three months ended September 30, 2023, and 2022, totaled $4.9 million and $5.1 million, respectively, and totaled $16.3 million and $12.3 million for the nine months ended September 30, 2023, and 2022, 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. Capitalized interest costs are included in total costs incurred. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
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 2022 Form 10-K . Please refer to Note 6 - Commitments and Contingencies in the 2022 Form 10-K for additional discussion of the Company’s commitments. Drilling Rig Service Contracts . During the nine months ended September 30, 2023, the Company entered into a new drilling rig contract, and amended certain of its existing drilling rig contracts to extend contract terms resulting in changes to day rates and potential early termination fees. As of September 30, 2023, the Company’s drilling rig commitments totaled $34.9 million under contract terms extending through the third quarter of 2024. If all of these contracts were terminated as of September 30, 2023, the Company would avoid a portion of the contractual service commitments; however, the Company would be required to pay $22.0 million in early termination fees. No early termination penalties or standby fees were incurred by the Company during the nine months ended September 30, 2023, and the Company does not expect to incur material penalties with regard to its drilling rig contracts during the remainder of 2023. Electrical Power Purchase Contracts . During the nine months ended September 30, 2023, the Company amended certain of its fixed price contracts for the purchase of electrical power to extend contract terms through March of 2029, with a total remaining obligation of $43.9 million as of September 30, 2023. 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Derivative Financial Instruments | Note 7 - Derivative Financial Instruments Summary of Oil, Gas, and NGL Derivative Contracts in Place The Company regularly enters into commodity derivative contracts to mitigate a portion of its exposure to oil, gas, and NGL price volatility and location differentials, and the associated effect on cash flows. All commodity derivative contracts that the Company enters into are for other-than-trading purposes. The Company’s commodity derivative contracts consist of price swap and collar arrangements for oil and gas production, and price 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 price, the Company receives the difference between the index price and the agreed upon swap price. If the index price is higher than the swap 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 entered into fixed price oil and gas 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 is sold. As of September 30, 2023, the Company had basis swap contracts with fixed price differentials between: • NYMEX WTI and Argus WTI Midland (“WTI Midland”) for a portion of its Midland Basin oil production with sales contracts that settle at WTI Midland prices; • NYMEX WTI and Argus WTI Houston Magellan East Houston Terminal (“WTI Houston MEH”) for a portion of its South Texas oil production with sales contracts that settle at WTI Houston MEH prices; • NYMEX Henry Hub (“HH”) and Inside FERC Houston Ship Channel (“IF HSC”) for a portion of its South Texas gas production with sales contracts that settle at IF HSC prices; and • NYMEX HH and Inside FERC West Texas (“IF Waha”) for a portion of its Midland Basin gas production with sales contracts that settle at IF Waha prices. The Company has also entered into oil swap contracts to fix the differential in pricing between the NYMEX calendar month average and the physical crude oil delivery month (“Roll Differential”) in which the Company pays the periodic variable Roll Differential and receives a weighted-average fixed price differential. The weighted-average fixed price differential represents the amount of net addition (reduction) to delivery month prices for the notional volumes covered by the swap contracts. As of September 30, 2023, the Company had commodity derivative contracts outstanding through the fourth quarter of 2025 as summarized in the table below: Contract Period Fourth Quarter 2023 2024 2025 Oil Derivatives (volumes in MBbl and prices in $ per Bbl): Swaps NYMEX WTI Volumes 837 — — Weighted-Average Contract Price $ 65.91 $ — $ — ICE Brent Volumes 920 910 — Weighted-Average Contract Price $ 86.50 $ 85.50 $ — Collars NYMEX WTI Volumes — 3,993 — Weighted-Average Floor Price $ — $ 70.01 $ — Weighted-Average Ceiling Price $ — $ 84.69 $ — Basis Swaps WTI Midland-NYMEX WTI Volumes 1,294 4,857 — Weighted-Average Contract Price $ 0.88 $ 1.21 $ — WTI Houston MEH-NYMEX WTI Volumes 296 1,190 — Weighted-Average Contract Price $ 1.53 $ 1.82 $ — Roll Differential Swaps NYMEX WTI Volumes 1,446 7,048 — Weighted-Average Contract Price $ 0.62 $ 0.57 $ — Gas Derivatives (volumes in BBtu and prices in $ per MMBtu): Swaps NYMEX HH Volumes — 4,185 5,891 Weighted-Average Contract Price $ — $ 3.20 $ 4.20 Collars NYMEX HH Volumes 8,362 22,342 11,723 Weighted-Average Floor Price $ 3.90 $ 3.61 $ 3.50 Weighted-Average Ceiling Price $ 5.70 $ 5.76 $ 5.04 IF HSC Volumes 1,451 — — Weighted-Average Floor Price $ 4.25 $ — $ — Weighted-Average Ceiling Price $ 5.55 $ — $ — Basis Swaps IF Waha-NYMEX HH Volumes 2,337 20,958 20,501 Weighted-Average Contract Price $ (1.01) $ (0.86) $ (0.66) IF HSC-NYMEX HH Volumes 2,008 15,898 — Weighted-Average Contract Price $ (0.25) $ (0.27) $ — NGL Derivatives (volumes in MBbl and prices in $ per Bbl): Swaps OPIS Propane Mont Belvieu Non-TET Volumes 187 — — Weighted-Average Contract Price $ 36.66 $ — $ — Commodity Derivative Contracts Entered Into Subsequent to September 30, 2023 Subsequent to September 30, 2023, the Company entered into a NYMEX WTI Roll Differential swap contract for the fourth quarter of 2023 for a total of 0.6 MMBbl of oil production at a contract price of $1.59 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 commodity derivative contracts as hedging instruments. The fair value of commodity derivative contracts was a net liability of $16.9 million as of September 30, 2023, and a net asset of $15.8 million as of December 31, 2022. The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets, by category: As of September 30, 2023 As of December 31, 2022 (in thousands) Derivative assets: Current assets $ 25,524 $ 48,677 Noncurrent assets 5,294 24,465 Total derivative assets $ 30,818 $ 73,142 Derivative liabilities: Current liabilities $ 43,152 $ 56,181 Noncurrent liabilities 4,595 1,142 Total derivative liabilities $ 47,747 $ 57,323 Offsetting of Derivative Assets and Liabilities As of September 30, 2023, and December 31, 2022, 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 as of Derivative Liabilities as of September 30, December 31, 2022 September 30, December 31, 2022 (in thousands) Gross amounts presented in the accompanying balance sheets $ 30,818 $ 73,142 $ (47,747) $ (57,323) Amounts not offset in the accompanying balance sheets (26,940) (26,136) 26,940 26,136 Net amounts $ 3,878 $ 47,006 $ (20,807) $ (31,187) The following table summarizes the commodity components of the derivative settlement (gain) loss, and the net derivative (gain) loss line items presented within the accompanying unaudited condensed consolidated statements of cash flows (“accompanying statements of cash flows”) and the accompanying statements of operations, respectively: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 (in thousands) Derivative settlement (gain) loss: Oil contracts $ 13,446 $ 120,430 $ 20,144 $ 428,811 Gas contracts (11,643) 61,981 (37,495) 142,369 NGL contracts (1,489) 3,888 (3,047) 23,900 Total derivative settlement (gain) loss $ 314 $ 186,299 $ (20,398) $ 595,080 Net derivative (gain) loss: Oil contracts $ 77,857 $ (180,300) $ 31,172 $ 235,023 Gas contracts (4,437) 47,973 (14,655) 142,695 NGL contracts 1,935 (5,250) (4,165) 7,462 Total net derivative (gain) loss $ 75,355 $ (137,577) $ 12,352 $ 385,180 Credit Related Contingent Features As of September 30, 2023, all of the Company’s derivative counterparties were members of the Credit Agreement lender group. The Company does not enter into derivative contracts with counterparties that are not part of the 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, as defined in the Credit Agreement, 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, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Note 8 - 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, 2023 As of December 31, 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets: Derivatives (1) $ — $ 30,818 $ — $ — $ 73,142 $ — Liabilities: Derivatives (1) $ — $ 47,747 $ — $ — $ 57,323 $ — __________________________________________ (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 7 - Derivative Financial Instruments in this report, and to Note 8 - Fair Value Measurements and Note 10 - Derivative Financial Instruments in the 2022 Form 10-K for more information regarding the Company’s derivative instruments. Long-Term Debt The following table reflects the fair value of the Company’s Senior Notes 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, 2023, or December 31, 2022, as they were recorded at carrying value, net of any unamortized deferred financing costs. Please refer to Note 5 - Long-Term Debt above for additional information. As of September 30, 2023 As of December 31, 2022 Principal Amount Fair Value Principal Amount Fair Value (in thousands) 5.625% Senior Notes due 2025 $ 349,118 $ 341,671 $ 349,118 $ 337,821 6.75% Senior Notes due 2026 $ 419,235 $ 411,898 $ 419,235 $ 409,484 6.625% Senior Notes due 2027 $ 416,791 $ 408,168 $ 416,791 $ 402,120 6.5% Senior Notes due 2028 $ 400,000 $ 383,128 $ 400,000 $ 384,520 |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2023 | |
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 restricted stock units (“RSU” or “RSUs”) and contingent performance share units (“PSU” or “PSUs”), which were measured using the treasury stock method. Please refer to Note 10 - Compensation Plans in this report and Note 9 - Earnings Per Share in the 2022 Form 10-K for additional detail on these potentially dilutive securities. The following table sets forth the calculations of basic and diluted net income per common share: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 (in thousands, except per share data) Net income $ 222,343 $ 481,240 $ 570,769 $ 853,489 Basic weighted-average common shares outstanding 117,823 123,195 119,589 122,318 Dilutive effect of non-vested RSUs, contingent PSUs, and other 505 1,084 576 1,915 Diluted weighted-average common shares outstanding 118,328 124,279 120,165 124,233 Basic net income per common share $ 1.89 $ 3.91 $ 4.77 $ 6.98 Diluted net income per common share $ 1.88 $ 3.87 $ 4.75 $ 6.87 |
Compensation Plans
Compensation Plans | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Compensation Plans | Note 10 - Compensation Plans The Company may grant various types of both short-term and long-term incentive-based awards under its compensation plans, such as cash awards, performance-based cash awards, and equity awards to eligible employees. Additionally, the Company grants stock-based compensation to its Board of Directors and provides an employee stock purchase plan. As of September 30, 2023, approximately 2.8 million shares of common stock were available for grant under the Company’s Equity Incentive Compensation Plan (“Equity Plan”). Performance Share Units The Company has granted PSUs to eligible employees as part of its Equity Plan. 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 criteria over a three For PSUs granted in 2022 and 2023, which the Company determined to be equity awards, settlement will be determined based on a combination of the following criteria measured over the three Compensation expense for PSUs is recognized within general and administrative expense and exploration expense over the vesting periods of the respective awards. Total compensation expense recorded for PSUs was $1.0 million and $0.6 million for the three months ended September 30, 2023, and 2022, respectively, and $1.8 million and $2.0 million for the nine months ended September 30, 2023, and 2022, respectively. As of September 30, 2023, there was $9.9 million of total unrecognized compensation expense related to non-vested PSUs, which is being amortized through mid-2026. A summary of activity during the nine months ended September 30, 2023, is presented in the following table: PSUs (1) Weighted-Average Grant-Date Fair Value (2) Non-vested at beginning of year 273,258 $ 26.67 Granted 256,633 $ 29.93 Vested — $ — Forfeited (31,918) $ 25.99 Non-vested at end of quarter 497,973 $ 27.75 ____________________________________________ (1) The number of shares of common stock assumes a multiplier of one. The actual final number of shares of common stock to be issued will range from zero to two times the number of PSUs awarded depending on the three (2) Amounts represent price per unit. Restricted Stock Units The Company has granted RSUs to eligible employees as part of its Equity Plan. 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. RSUs generally vest in one-third increments on each anniversary date of the grant over the applicable vesting period or upon other triggering events as set forth in the Equity Plan. The Company records compensation expense associated with the issuance of RSUs based on the fair value of the awards as of the date of grant. The fair value of an RSU is equal to the closing price of the Company’s common stock on the date of the grant. Compensation expense for RSUs is recognized within general and administrative expense and exploration expense over the vesting periods of the respective awards. During the nine months ended September 30, 2023, the Company granted to employees a total of 620,420 RSUs with a grant date fair value of $19.8 million, and the Company settled RSUs upon vesting of awards granted in previous years. The Company and a majority of eligible recipients 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 applicable award agreements. After withholding 249,233 shares to satisfy income and payroll tax withholding obligations, the Company issued 554,216 shares of common stock in accordance with the terms of the applicable award agreements during the nine months ended September 30, 2023. Total compensation expense recorded for RSUs was $4.1 million and $3.5 million for the three months ended September 30, 2023, and 2022, respectively, and $10.8 million and $10.0 million for the nine months ended September 30, 2023, and 2022, respectively. As of September 30, 2023, there was $30.0 million of total unrecognized compensation expense related to non-vested RSUs, which is being amortized through mid-2026. A summary of activity during the nine months ended September 30, 2023, is presented in the following table: RSUs Weighted-Average Grant-Date Fair Value (1) Non-vested at beginning of year 1,375,052 $ 22.42 Granted 620,420 $ 31.92 Vested (803,449) $ 16.72 Forfeited (98,766) $ 28.86 Non-vested at end of quarter 1,093,257 $ 31.42 ____________________________________________ (1) Amounts represent price per unit. Director Shares During the nine months ended September 30, 2023, and 2022, the Company issued a total of 56,872 and 29,471 shares, respectively, of its common stock as compensation to its non-employee directors under the Equity Plan. Shares issued during 2023 will fully vest on December 31, 2023, and shares issued during 2022 fully vested on December 31, 2022. 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, subject to a maximum of 2,500 shares per offering period and a maximum of $25,000 in value related to purchases for each calendar year. The purchase price of the common stock is 85 percent of the lower of the trading price of the common stock on either the first or last day of the six-month offering period. The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. There were a total of 68,192 and 65,634 shares issued under the ESPP during the nine months ended September 30, 2023, and 2022, respectively. Total proceeds to the Company for the issuance of these shares was $1.8 million and $1.6 million for the nine months ended September 30, 2023, and 2022, respectively. The fair value of ESPP grants is measured at the date of grant using the Black-Scholes option-pricing model. Please refer to Note 7 - Compensation Plans in the 2022 Form 10-K for additional detail on the Company’s compensation plans. |
Divestitures, Assets Held for S
Divestitures, Assets Held for Sale, and Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Divestitures, Assets Held for Sale, and Acquisitions [Abstract] | |
Acquisitions, Assets Held for Sale, and Divestitures | Note 11 - Acquisitions Acquisitions On June 30, 2023, the Company acquired approximately 20,000 net acres of oil and gas properties located in Dawson and northern Martin Counties, Texas. Total consideration paid after purchase price adjustments was $88.9 million. Under authoritative accounting guidance, this transaction was considered to be an asset acquisition. Therefore, the properties were recorded based on the total consideration paid after purchase price adjustments and the transaction costs were capitalized as a component of the cost of the assets acquired. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 2022 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, 2023, and through the filing of this report. Additionally, certain prior period amounts have been reclassified to conform to current period presentation in the accompanying unaudited condensed consolidated financial statements. |
Recently Issued Accounting Standards, Policy [Policy Text Block] | Recently Issued Accounting Standards In October 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”) . ASU 2023-06 was issued to modify the disclosure or presentation requirements of a variety of topics in the codification. The effective date for each amendment will be the date on which the Securities and Exchange Commission’s (“SEC”) removal of the related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company is evaluating the impact of ASU 2023-06 on its consolidated financial statements and related disclosures but does not expect the impact to be material. As of September 30, 2023, and through the filing of this report, no other new accounting standards have been issued and not yet adopted that are applicable to the Company and that would have a material effect on the Company’s unaudited condensed consolidated financial statements and related disclosures. |
Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block] | The Company’s accounting policy is to not offset |
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 7 - Derivative Financial Instruments in this report, and to Note 8 - Fair Value Measurements and Note 10 - Derivative Financial Instruments in the 2022 Form 10-K for more information regarding the Company’s derivative instruments. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block] | The Company’s accounting policy is to not offset |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
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 7 - Derivative Financial Instruments in this report, and to Note 8 - Fair Value Measurements and Note 10 - Derivative Financial Instruments in the 2022 Form 10-K for more information regarding the Company’s derivative instruments. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 areas for the three and nine months ended September 30, 2023, and 2022: Midland Basin South Texas Total Three Months Ended Three Months Ended Three Months Ended 2023 2022 2023 2022 2023 2022 (in thousands) Oil production revenue $ 369,858 $ 420,838 $ 129,376 $ 105,095 $ 499,234 $ 525,933 Gas production revenue 45,215 123,912 36,592 110,641 81,807 234,553 NGL production revenue 175 315 58,483 66,757 58,658 67,072 Total $ 415,248 $ 545,065 $ 224,451 $ 282,493 $ 639,699 $ 827,558 Relative percentage 65 % 66 % 35 % 34 % 100 % 100 % Midland Basin South Texas Total Nine Months Ended Nine Months Ended Nine Months Ended 2023 2022 2023 2022 2023 2022 (in thousands) Oil production revenue $ 992,867 $ 1,449,660 $ 350,598 $ 350,594 $ 1,343,465 $ 1,800,254 Gas production revenue 131,804 363,728 113,461 282,201 245,265 645,929 NGL production revenue 563 597 167,739 229,876 168,302 230,473 Total $ 1,125,234 $ 1,813,985 $ 631,798 $ 862,671 $ 1,757,032 $ 2,676,656 Relative percentage 64 % 68 % 36 % 32 % 100 % 100 % |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Stock Repurchase Activity | The following table presents the Company’s common stock repurchase activity for the three and nine months ended September 30, 2023, and 2022: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 (in thousands, except per share data) Shares of common stock repurchased (1) 2,352 453 6,316 453 Weighted-average price per share (2) $ 40.97 $ 44.69 $ 32.48 $ 44.69 Cost of shares of common stock repurchased (2) (3) $ 96,336 $ 20,232 $ 205,120 $ 20,232 ____________________________________________ (1) All repurchased shares of the Company’s common stock were retired upon repurchase. (2) Amounts exclude excise taxes, commissions, and fees. (3) Amounts may not calculate due to rounding. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | The provision for income taxes for the three and nine months ended September 30, 2023, and 2022, consisted of the following: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 (in thousands) Current portion of income tax expense: Federal $ (3,923) $ (7,014) $ (6,732) $ (11,287) State (1,173) (2,317) (1,716) (4,668) Deferred portion of income tax (expense) benefit 51,075 (110,048) (43,171) (202,996) Income tax (expense) benefit $ 45,979 $ (119,379) $ (51,619) $ (218,951) Effective tax rate (26.1) % 19.9 % 8.3 % 20.4 % |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | 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 26, 2023, September 30, 2023, and December 31, 2022: As of October 26, 2023 As of September 30, 2023 As of December 31, 2022 (in thousands) Revolving credit facility (1) $ — $ — $ — Letters of credit (2) 2,500 2,500 6,000 Available borrowing capacity 1,247,500 1,247,500 1,244,000 Total aggregate lender commitment amount $ 1,250,000 $ 1,250,000 $ 1,250,000 ____________________________________________ (1) Unamortized deferred financing costs attributable to the revolving credit facility are presented as a component of the other noncurrent assets line item on the accompanying balance sheets and totaled $9.1 million and $10.8 million as of September 30, 2023, and December 31, 2022, respectively. These costs are being amortized over the term of the revolving credit facility on a straight-line basis. (2) Letters of credit outstanding reduce the amount available under the revolving credit facility on a dollar-for-dollar basis. |
Schedule of Long-term Debt Instruments | The Company’s Senior Notes, net line item on the accompanying balance sheets as of September 30, 2023, and December 31, 2022, consisted of the following (collectively referred to as “Senior Notes”): As of September 30, 2023 As of December 31, 2022 Principal Amount Unamortized Deferred Financing Costs Principal Amount, Net Principal Amount Unamortized Deferred Financing Costs Principal Amount, Net (in thousands) 5.625% Senior Notes due 2025 $ 349,118 $ 1,054 $ 348,064 $ 349,118 $ 1,528 $ 347,590 6.75% Senior Notes due 2026 419,235 2,044 417,191 419,235 2,569 416,666 6.625% Senior Notes due 2027 416,791 2,589 414,202 416,791 3,172 413,619 6.5% Senior Notes due 2028 400,000 4,904 395,096 400,000 5,665 394,335 Total $ 1,585,144 $ 10,591 $ 1,574,553 $ 1,585,144 $ 12,934 $ 1,572,210 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Schedule of notional amounts of outstanding derivative positions | As of September 30, 2023, the Company had commodity derivative contracts outstanding through the fourth quarter of 2025 as summarized in the table below: Contract Period Fourth Quarter 2023 2024 2025 Oil Derivatives (volumes in MBbl and prices in $ per Bbl): Swaps NYMEX WTI Volumes 837 — — Weighted-Average Contract Price $ 65.91 $ — $ — ICE Brent Volumes 920 910 — Weighted-Average Contract Price $ 86.50 $ 85.50 $ — Collars NYMEX WTI Volumes — 3,993 — Weighted-Average Floor Price $ — $ 70.01 $ — Weighted-Average Ceiling Price $ — $ 84.69 $ — Basis Swaps WTI Midland-NYMEX WTI Volumes 1,294 4,857 — Weighted-Average Contract Price $ 0.88 $ 1.21 $ — WTI Houston MEH-NYMEX WTI Volumes 296 1,190 — Weighted-Average Contract Price $ 1.53 $ 1.82 $ — Roll Differential Swaps NYMEX WTI Volumes 1,446 7,048 — Weighted-Average Contract Price $ 0.62 $ 0.57 $ — Gas Derivatives (volumes in BBtu and prices in $ per MMBtu): Swaps NYMEX HH Volumes — 4,185 5,891 Weighted-Average Contract Price $ — $ 3.20 $ 4.20 Collars NYMEX HH Volumes 8,362 22,342 11,723 Weighted-Average Floor Price $ 3.90 $ 3.61 $ 3.50 Weighted-Average Ceiling Price $ 5.70 $ 5.76 $ 5.04 IF HSC Volumes 1,451 — — Weighted-Average Floor Price $ 4.25 $ — $ — Weighted-Average Ceiling Price $ 5.55 $ — $ — Basis Swaps IF Waha-NYMEX HH Volumes 2,337 20,958 20,501 Weighted-Average Contract Price $ (1.01) $ (0.86) $ (0.66) IF HSC-NYMEX HH Volumes 2,008 15,898 — Weighted-Average Contract Price $ (0.25) $ (0.27) $ — NGL Derivatives (volumes in MBbl and prices in $ per Bbl): Swaps OPIS Propane Mont Belvieu Non-TET Volumes 187 — — Weighted-Average Contract Price $ 36.66 $ — $ — |
Schedule of fair value of derivatives in accompanying balance sheets | The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets, by category: As of September 30, 2023 As of December 31, 2022 (in thousands) Derivative assets: Current assets $ 25,524 $ 48,677 Noncurrent assets 5,294 24,465 Total derivative assets $ 30,818 $ 73,142 Derivative liabilities: Current liabilities $ 43,152 $ 56,181 Noncurrent liabilities 4,595 1,142 Total derivative liabilities $ 47,747 $ 57,323 |
Schedule of the potential effects of master netting arrangements | 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 as of Derivative Liabilities as of September 30, December 31, 2022 September 30, December 31, 2022 (in thousands) Gross amounts presented in the accompanying balance sheets $ 30,818 $ 73,142 $ (47,747) $ (57,323) Amounts not offset in the accompanying balance sheets (26,940) (26,136) 26,940 26,136 Net amounts $ 3,878 $ 47,006 $ (20,807) $ (31,187) |
Schedule of the components of the derivative settlement (gain) loss and the net derivative (gain) loss | The following table summarizes the commodity components of the derivative settlement (gain) loss, and the net derivative (gain) loss line items presented within the accompanying unaudited condensed consolidated statements of cash flows (“accompanying statements of cash flows”) and the accompanying statements of operations, respectively: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 (in thousands) Derivative settlement (gain) loss: Oil contracts $ 13,446 $ 120,430 $ 20,144 $ 428,811 Gas contracts (11,643) 61,981 (37,495) 142,369 NGL contracts (1,489) 3,888 (3,047) 23,900 Total derivative settlement (gain) loss $ 314 $ 186,299 $ (20,398) $ 595,080 Net derivative (gain) loss: Oil contracts $ 77,857 $ (180,300) $ 31,172 $ 235,023 Gas contracts (4,437) 47,973 (14,655) 142,695 NGL contracts 1,935 (5,250) (4,165) 7,462 Total net derivative (gain) loss $ 75,355 $ (137,577) $ 12,352 $ 385,180 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring 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 are classified within the fair value hierarchy: As of September 30, 2023 As of December 31, 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets: Derivatives (1) $ — $ 30,818 $ — $ — $ 73,142 $ — Liabilities: Derivatives (1) $ — $ 47,747 $ — $ — $ 57,323 $ — __________________________________________ (1) This represents a financial asset or liability that is measured at fair value on a recurring basis. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Long-Term Debt The following table reflects the fair value of the Company’s Senior Notes 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, 2023, or December 31, 2022, as they were recorded at carrying value, net of any unamortized deferred financing costs. Please refer to Note 5 - Long-Term Debt above for additional information. As of September 30, 2023 As of December 31, 2022 Principal Amount Fair Value Principal Amount Fair Value (in thousands) 5.625% Senior Notes due 2025 $ 349,118 $ 341,671 $ 349,118 $ 337,821 6.75% Senior Notes due 2026 $ 419,235 $ 411,898 $ 419,235 $ 409,484 6.625% Senior Notes due 2027 $ 416,791 $ 408,168 $ 416,791 $ 402,120 6.5% Senior Notes due 2028 $ 400,000 $ 383,128 $ 400,000 $ 384,520 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of calculations of basic and diluted net income (loss) per common share | The following table sets forth the calculations of basic and diluted net income per common share: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 (in thousands, except per share data) Net income $ 222,343 $ 481,240 $ 570,769 $ 853,489 Basic weighted-average common shares outstanding 117,823 123,195 119,589 122,318 Dilutive effect of non-vested RSUs, contingent PSUs, and other 505 1,084 576 1,915 Diluted weighted-average common shares outstanding 118,328 124,279 120,165 124,233 Basic net income per common share $ 1.89 $ 3.91 $ 4.77 $ 6.98 Diluted net income per common share $ 1.88 $ 3.87 $ 4.75 $ 6.87 |
Compensation Related Costs, Gen
Compensation Related Costs, General (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Compensation Related Costs [Abstract] | |
Schedule of non-vested PSUs | A summary of activity during the nine months ended September 30, 2023, is presented in the following table: PSUs (1) Weighted-Average Grant-Date Fair Value (2) Non-vested at beginning of year 273,258 $ 26.67 Granted 256,633 $ 29.93 Vested — $ — Forfeited (31,918) $ 25.99 Non-vested at end of quarter 497,973 $ 27.75 ____________________________________________ (1) The number of shares of common stock assumes a multiplier of one. The actual final number of shares of common stock to be issued will range from zero to two times the number of PSUs awarded depending on the three (2) Amounts represent price per unit. |
Schedule of non-vested RSUs | A summary of activity during the nine months ended September 30, 2023, is presented in the following table: RSUs Weighted-Average Grant-Date Fair Value (1) Non-vested at beginning of year 1,375,052 $ 22.42 Granted 620,420 $ 31.92 Vested (803,449) $ 16.72 Forfeited (98,766) $ 28.86 Non-vested at end of quarter 1,093,257 $ 31.42 ____________________________________________ (1) Amounts represent price per unit. |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 639,699 | $ 827,558 | $ 1,757,032 | $ 2,676,656 |
Revenue, Remaining Performance Obligation, Amount | 0 | 0 | ||
Midland Basin | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 415,248 | 545,065 | 1,125,234 | 1,813,985 |
South Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 224,451 | $ 282,493 | $ 631,798 | $ 862,671 |
Revenue Benchmark | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Relative percentage | 100% | 100% | 100% | 100% |
Revenue Benchmark | Geographic Concentration Risk | Midland Basin | ||||
Segment Reporting Information [Line Items] | ||||
Relative percentage | 65% | 66% | 64% | 68% |
Revenue Benchmark | Geographic Concentration Risk | South Texas | ||||
Segment Reporting Information [Line Items] | ||||
Relative percentage | 35% | 34% | 36% | 32% |
Oil production revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 499,234 | $ 525,933 | $ 1,343,465 | $ 1,800,254 |
Oil production revenue | Midland Basin | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 369,858 | 420,838 | 992,867 | 1,449,660 |
Oil production revenue | South Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 129,376 | 105,095 | 350,598 | 350,594 |
Gas production revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 81,807 | 234,553 | 245,265 | 645,929 |
Gas production revenue | Midland Basin | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 45,215 | 123,912 | 131,804 | 363,728 |
Gas production revenue | South Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 36,592 | 110,641 | 113,461 | 282,201 |
NGL production revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 58,658 | 67,072 | 168,302 | 230,473 |
NGL production revenue | Midland Basin | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 175 | 315 | 563 | 597 |
NGL production revenue | South Texas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 58,483 | $ 66,757 | $ 167,739 | $ 229,876 |
Accounts Receivable from Custom
Accounts Receivable from Customers (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Accrued Income Receivable | ||
Accounts Receivable [Line Items] | ||
Accounts receivable from contracts with customers | $ 217.3 | $ 184.5 |
Minimum | ||
Accounts Receivable [Line Items] | ||
Revenue receipt, days after sale | 30 | |
Maximum | ||
Accounts Receivable [Line Items] | ||
Revenue receipt, days after sale | 90 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 07, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | |||||
Stock Repurchase Program, Authorized Amount | $ 500,000 | ||||
Stock Repurchase Program Expiration Date | Dec. 31, 2024 | ||||
Stock Repurchased and Retired During Period (Shares) | 2,352 | 453 | 6,316 | 453 | |
Stock Repurchase Program, Shares Repurchased, Weighted Average Price Per Share | $ 40.97 | $ 44.69 | $ 32.48 | $ 44.69 | |
Stock Repurchased and Retired During Period Excluding Excise Taxes, Commission, and Fees, Value | $ 96,336 | $ 20,232 | $ 205,120 | $ 20,232 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 237,700 | $ 237,700 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Components of the provision for income taxes | ||||
Federal | $ (3,923) | $ (7,014) | $ (6,732) | $ (11,287) |
State | (1,173) | (2,317) | (1,716) | (4,668) |
Deferred portion of income tax (expense) benefit | 51,075 | (110,048) | (43,171) | (202,996) |
Income tax (expense) benefit | $ 45,979 | $ (119,379) | $ (51,619) | $ (218,951) |
Effective tax rate | (26.10%) | 19.90% | 8.30% | 20.40% |
Domestic Tax Authority | Internal Revenue Service (IRS) [Member] | Research Tax Credit Carryforward | ||||
Tax Credit Carryforward, Amount | $ 52,300 | $ 52,300 |
Credit Agreement (Details)
Credit Agreement (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Oct. 26, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | |||
Revolving credit facility | $ 0 | $ 0 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility, maximum loan amount | 3,000,000 | ||
Revolving credit facility, current borrowing base | 2,500,000 | ||
Revolving credit facility, aggregate lender commitments | $ 1,250,000 | 1,250,000 | |
Debt Instrument, Maturity Date | Aug. 02, 2027 | ||
Revolving credit facility | $ 0 | 0 | |
Letters of credit | 2,500 | 6,000 | |
Available borrowing capacity | 1,247,500 | 1,244,000 | |
Revolving Credit Facility, unamortized deferred financing costs | $ 9,100 | $ 10,800 | |
Revolving Credit Facility | Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility, aggregate lender commitments | $ 1,250,000 | ||
Revolving credit facility | 0 | ||
Letters of credit | 2,500 | ||
Available borrowing capacity | $ 1,247,500 |
Senior Notes (Details)
Senior Notes (Details) - USD ($) $ in Thousands | Feb. 14, 2022 | Sep. 30, 2023 | Dec. 31, 2022 |
Senior Notes [Line Items] | |||
Senior Notes, Principal Amount, Net | $ 1,574,553 | $ 1,572,210 | |
5.625% Senior Unsecured Notes due 2025 | |||
Senior Notes [Line Items] | |||
Senior Notes, interest rate, stated percentage | 5.625% | 5.625% | |
Senior Notes, Principal amount | $ 349,118 | $ 349,118 | |
Senior Notes, unamortized deferred financing costs | 1,054 | 1,528 | |
Senior Notes, Principal Amount, Net | $ 348,064 | $ 347,590 | |
6.75% Senior Unsecured Notes due 2026 | |||
Senior Notes [Line Items] | |||
Senior Notes, interest rate, stated percentage | 6.75% | 6.75% | |
Senior Notes, Principal amount | $ 419,235 | $ 419,235 | |
Senior Notes, unamortized deferred financing costs | 2,044 | 2,569 | |
Senior Notes, Principal Amount, Net | $ 417,191 | $ 416,666 | |
6.625% Senior Unsecured Notes due 2027 | |||
Senior Notes [Line Items] | |||
Senior Notes, interest rate, stated percentage | 6.625% | 6.625% | |
Senior Notes, Principal amount | $ 416,791 | $ 416,791 | |
Senior Notes, unamortized deferred financing costs | 2,589 | 3,172 | |
Senior Notes, Principal Amount, Net | $ 414,202 | $ 413,619 | |
6.5% Senior Unsecured Notes Due 2028 | |||
Senior Notes [Line Items] | |||
Senior Notes, interest rate, stated percentage | 6.50% | 6.50% | |
Senior Notes, Principal amount | $ 400,000 | $ 400,000 | |
Senior Notes, unamortized deferred financing costs | 4,904 | 5,665 | |
Senior Notes, Principal Amount, Net | 395,096 | 394,335 | |
Senior Notes | |||
Senior Notes [Line Items] | |||
Senior Notes, Principal amount | 1,585,144 | 1,585,144 | |
Senior Notes, unamortized deferred financing costs | $ 10,591 | $ 12,934 | |
5.0% Senior Unsecured Notes due 2024 | |||
Senior Notes [Line Items] | |||
Senior Notes, interest rate, stated percentage | 5% | ||
Senior Notes, repurchased principal amount | $ 104,800 | ||
Senior Notes, Redemption Price, Percentage | 100% |
Senior Secured Notes (Details)
Senior Secured Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 17, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Senior Secured Notes [Line Items] | |||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 0 | $ (67,605) | |
10.0% Senior Secured Notes due 2025 | |||||
Senior Secured Notes [Line Items] | |||||
Senior Secured Notes, repurchased principal amount | $ 446,700 | ||||
Senior Notes, interest rate, stated percentage | 10% | ||||
Senior Secured Notes, Redemption Price, Percentage | 107.50% | ||||
Loss on extinguishment of debt | $ 67,200 | ||||
Debt Instrument, Repurchase Premium | 33,500 | ||||
10.0% Senior Secured Notes due 2025 | Accelerated Unamortized Debt Discount | |||||
Senior Secured Notes [Line Items] | |||||
Write off of Deferred Debt Issuance Cost | 26,300 | ||||
10.0% Senior Secured Notes due 2025 | Accelerated unamortized deferred financing costs | |||||
Senior Secured Notes [Line Items] | |||||
Write off of Deferred Debt Issuance Cost | $ 7,400 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Long-Term Debt [Line Items] | |||||
Debt Instrument, Covenant Compliance | The Company was in compliance with all financial and non-financial covenants as of September 30, 2023, and through the filing of this report. | ||||
Capitalized interest costs | $ 4.9 | $ 5.1 | $ 16.3 | $ 12.3 | |
Subsequent Event | |||||
Long-Term Debt [Line Items] | |||||
Debt Instrument, Covenant Compliance | The Company was in compliance with all financial and non-financial covenants as of September 30, 2023, and through the filing of this report. |
Commitments (Details)
Commitments (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Drilling Rig Leasing Contracts | |
Commitments and Contingencies [Line Items] | |
Contractual Obligation | $ 34,900 |
Potential Early Termination Penalty for Rig Contract Cancellation | 22,000 |
Early Termination Penalty Incurred for Rig Contract Cancellation | 0 |
Electricity Purchase Agreement | |
Commitments and Contingencies [Line Items] | |
Contractual Obligation | $ 43,900 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) bbl in Thousands, BTU in Billions | 1 Months Ended | |
Sep. 30, 2023 BTU $ / EnergyContent $ / Barrels bbl | Nov. 02, 2023 $ / Barrels bbl | |
NYMEX Oil Swap Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 837 | |
Derivative, Swap Type, Weighted-Average Contract Price | 65.91 | |
NYMEX Oil Swap Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | 0 | |
NYMEX Oil Swap Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | 0 | |
ICE Brent Oil Swap Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 920 | |
Derivative, Swap Type, Weighted-Average Contract Price | 86.50 | |
ICE Brent Oil Swap Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 910 | |
Derivative, Swap Type, Weighted-Average Contract Price | 85.50 | |
ICE Brent Oil Swap Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | 0 | |
NYMEX Oil Collar Contract, Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Weighted-Average Floor Price | 0 | |
Derivative, Weighted-Average Ceiling Price | 0 | |
NYMEX Oil Collar Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 3,993 | |
Derivative, Weighted-Average Floor Price | 70.01 | |
Derivative, Weighted-Average Ceiling Price | 84.69 | |
NYMEX Oil Collar Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Weighted-Average Floor Price | 0 | |
Derivative, Weighted-Average Ceiling Price | 0 | |
NYMEX Oil Calendar Month Average Roll Differential Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 1,446 | |
Derivative, Roll Differential Swap Type, Weighted-Average Contract Price | 0.62 | |
NYMEX Oil Calendar Month Average Roll Differential Fourth Quarter, Year 1 | Subsequent Event | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 600 | |
Derivative, Roll Differential Swap Type, Weighted-Average Contract Price | 1.59 | |
NYMEX Oil Calendar Month Average Roll Differential Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 7,048 | |
Derivative, Roll Differential Swap Type, Weighted-Average Contract Price | 0.57 | |
NYMEX Oil Calendar Month Average Roll Differential Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Roll Differential Swap Type, Weighted-Average Contract Price | 0 | |
WTI Midland NYMEX WTI | Oil Basis Swap Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 1,294 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 0.88 | |
WTI Midland NYMEX WTI | Oil Basis Swap Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 4,857 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 1.21 | |
WTI Midland NYMEX WTI | Oil Basis Swap Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 0 | |
WTI Houston MEH NYMEX WTI | Oil Basis Swap Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 296 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 1.53 | |
WTI Houston MEH NYMEX WTI | Oil Basis Swap Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 1,190 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 1.82 | |
WTI Houston MEH NYMEX WTI | Oil Basis Swap Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 0 | |
NYMEX HH | Gas Swaps Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 0 | |
NYMEX HH | Gas Swaps Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 4,185 | |
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 3.20 | |
NYMEX HH | Gas Swaps Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 5,891 | |
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 4.20 | |
NYMEX HH | Gas Collar Contract, Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 8,362 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 3.90 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 5.70 | |
NYMEX HH | Gas Collar Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 22,342 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 3.61 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 5.76 | |
NYMEX HH | Gas Collar Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 11,723 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 3.50 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 5.04 | |
IF HSC | Gas Collar Contract, Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 1,451 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 4.25 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 5.55 | |
IF HSC | Gas Collar Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 0 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 0 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 0 | |
IF HSC | Gas Collar Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 0 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 0 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 0 | |
IF WAHA NYMEX HH | Gas Basis Swap Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 2,337 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (1.01) | |
IF WAHA NYMEX HH | Gas Basis Swap Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 20,958 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (0.86) | |
IF WAHA NYMEX HH | Gas Basis Swap Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 20,501 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (0.66) | |
IF HSC NYMEX HH | Gas Basis Swap Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 2,008 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (0.25) | |
IF HSC NYMEX HH | Gas Basis Swap Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 15,898 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (0.27) | |
IF HSC NYMEX HH | Gas Basis Swap Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 0 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 0 | |
OPIS Propane Mont Belvieu Non-TET | NGL Swaps Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 187 | |
Derivative, Swap Type, Weighted-Average Contract Price | 36.66 | |
OPIS Propane Mont Belvieu Non-TET | NGL Swaps Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | 0 | |
OPIS Propane Mont Belvieu Non-TET | NGL Swaps Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair value of derivative assets and liabilities | ||
Derivative, fair value, net | $ (16,900) | $ 15,800 |
Derivative assets, current | 25,524 | 48,677 |
Derivative assets, noncurrent | 5,294 | 24,465 |
Total derivative assets | 30,818 | 73,142 |
Derivative liabilities, current | 43,152 | 56,181 |
Derivatives liabilities, noncurrent | 4,595 | 1,142 |
Total derivative liabilities | (47,747) | (57,323) |
Derivative asset, amounts not offset in the accompanying balance sheets | (26,940) | (26,136) |
Derivative liabilities, amounts not offset in the accompanying balance sheets | 26,940 | 26,136 |
Derivative asset, fair value, net amounts | 3,878 | 47,006 |
Derivative liabilities, fair value, net amounts | (20,807) | (31,187) |
Not Designated as Hedging Instrument | ||
Fair value of derivative assets and liabilities | ||
Derivative assets, current | 25,524 | 48,677 |
Derivative assets, noncurrent | 5,294 | 24,465 |
Derivative liabilities, current | 43,152 | 56,181 |
Derivatives liabilities, noncurrent | 4,595 | 1,142 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | Not Designated as Hedging Instrument | ||
Fair value of derivative assets and liabilities | ||
Total derivative assets | 30,818 | 73,142 |
Total derivative liabilities | $ 47,747 | $ 57,323 |
Derivative Financial Instrume_5
Derivative Financial Instruments Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Derivative settlement (gain) loss | $ 314 | $ 186,299 | $ (20,398) | $ 595,080 |
Net derivative (gain) loss | 75,355 | (137,577) | 12,352 | 385,180 |
Oil Contracts | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Derivative settlement (gain) loss | 13,446 | 120,430 | 20,144 | 428,811 |
Net derivative (gain) loss | 77,857 | (180,300) | 31,172 | 235,023 |
Gas Contracts | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Derivative settlement (gain) loss | (11,643) | 61,981 | (37,495) | 142,369 |
Net derivative (gain) loss | (4,437) | 47,973 | (14,655) | 142,695 |
NGL Contracts | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Derivative settlement (gain) loss | (1,489) | 3,888 | (3,047) | 23,900 |
Net derivative (gain) loss | $ 1,935 | $ (5,250) | $ (4,165) | $ 7,462 |
Credit Facility and Derivative
Credit Facility and Derivative Counterparties (Details) | Sep. 30, 2023 |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Percentage of proved property secured for credit facility borrowing | 85% |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Derivative Assets, Fair Value, Gross Asset | $ 30,818 | $ 73,142 |
Liabilities | ||
Derivative Liability, Fair Value, Gross Liability | $ (47,747) | $ (57,323) |
5.625% Senior Unsecured Notes due 2025 | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Senior Notes, interest rate, stated percentage | 5.625% | 5.625% |
Senior Notes, Principal amount | $ 349,118 | $ 349,118 |
Long-term Debt, Fair Value | $ 341,671 | $ 337,821 |
6.75% Senior Unsecured Notes due 2026 | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Senior Notes, interest rate, stated percentage | 6.75% | 6.75% |
Senior Notes, Principal amount | $ 419,235 | $ 419,235 |
Long-term Debt, Fair Value | $ 411,898 | $ 409,484 |
6.625% Senior Unsecured Notes due 2027 | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Senior Notes, interest rate, stated percentage | 6.625% | 6.625% |
Senior Notes, Principal amount | $ 416,791 | $ 416,791 |
Long-term Debt, Fair Value | $ 408,168 | $ 402,120 |
6.5% Senior Unsecured Notes Due 2028 | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Senior Notes, interest rate, stated percentage | 6.50% | 6.50% |
Senior Notes, Principal amount | $ 400,000 | $ 400,000 |
Long-term Debt, Fair Value | 383,128 | 384,520 |
Not Designated as Hedging Instrument | Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||
Assets | ||
Derivative Assets, Fair Value, Gross Asset | 0 | 0 |
Liabilities | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Not Designated as Hedging Instrument | Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||
Assets | ||
Derivative Assets, Fair Value, Gross Asset | 30,818 | 73,142 |
Liabilities | ||
Derivative Liability, Fair Value, Gross Liability | 47,747 | 57,323 |
Not Designated as Hedging Instrument | Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||
Assets | ||
Derivative Assets, Fair Value, Gross Asset | 0 | 0 |
Liabilities | ||
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 |
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, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share Reconciliation [Abstract] | ||||||||
Net income | $ 222,343 | $ 149,874 | $ 198,552 | $ 481,240 | $ 323,485 | $ 48,764 | $ 570,769 | $ 853,489 |
Basic weighted-average common shares outstanding | 117,823 | 123,195 | 119,589 | 122,318 | ||||
Dilutive effect of non-vested RSUs, contingent PSUs, and other | 505 | 1,084 | 576 | 1,915 | ||||
Diluted weighted-average common shares outstanding | 118,328 | 124,279 | 120,165 | 124,233 | ||||
Basic net income per common share | $ 1.89 | $ 3.91 | $ 4.77 | $ 6.98 | ||||
Diluted net income per common share | $ 1.88 | $ 3.87 | $ 4.75 | $ 6.87 |
Compensation Plans_ Stock Based
Compensation Plans: Stock Based (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares available for grant | 2,800,000 | 2,800,000 | |||
Performance Shares (PSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Award Vesting Period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Granted in Period, Total Fair Value | $ | $ 7.7 | ||||
Stock-based compensation expense | $ | $ 1 | $ 0.6 | 1.8 | $ 2 | |
Unrecognized stock based compensation expense | $ | $ 9.9 | $ 9.9 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 497,973 | 497,973 | 273,258 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 27.75 | $ 27.75 | $ 26.67 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 256,633 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 29.93 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (31,918) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 25.99 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Multiplier Assumed | 1 | 1 | |||
Performance Shares (PSUs) | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Multiplier applied to PSU awards at settlement | 0 | 0 | |||
Performance Shares (PSUs) | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Multiplier applied to PSU awards at settlement | 2 | 2 | |||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Granted in Period, Total Fair Value | $ | $ 19.8 | ||||
Number of shares represented by each RSU | 1 | 1 | |||
Stock-based compensation expense | $ | $ 4.1 | $ 3.5 | $ 10.8 | $ 10 | |
Unrecognized stock based compensation expense | $ | $ 30 | $ 30 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,093,257 | 1,093,257 | 1,375,052 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 31.42 | $ 31.42 | $ 22.42 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 620,420 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 31.92 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (803,449) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 16.72 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (98,766) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 28.86 | ||||
Shares Withheld for Tax Withholding Obligation | 249,233 | ||||
Shares Issued in Period | 554,216 |
Director Shares (Details)
Director Shares (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shares issued to directors | 56,872 | 29,471 |
Employee Stock Purchase Plan (D
Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Maximum Employee Subscription Rate | 15% | |
Maximum Number of Shares Per Employee | 2,500 | |
Maximum Employee Subscription Value | $ 25 | |
Purchase Price of Common Stock, Percent | 85% | |
Issuance of common stock under Employee Stock Purchase Plan (Shares) | 68,192 | 65,634 |
Proceeds, Issuance of Shares, Share-based Payment Arrangement, Excluding Option Exercised | $ 1,800 | $ 1,600 |
Acquisitions (Details)
Acquisitions (Details) $ in Millions | 9 Months Ended | |
Jun. 30, 2023 a | Sep. 30, 2023 USD ($) | |
Asset Acquisition [Line Items] | ||
Net Acres Acquired | a | 20,000 | |
Asset Acquisition, Consideration Transferred | $ | $ 88.9 | |
Q2 2023 Dawson and Martin County Asset Acquisitions [Member] | ||
Asset Acquisition [Line Items] | ||
Asset Acquisition, Effective Date of Acquisition | Jun. 30, 2023 |