Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 04, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SGY | |
Entity Registrant Name | STONE ENERGY CORP | |
Entity Central Index Key | 904,080 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 56,864,607 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 367,134 | $ 10,759 | $ 162,128 | $ 74,488 |
Accounts receivable | 42,185 | 48,031 | ||
Fair value of derivative contracts | 30,222 | 38,576 | ||
Current income tax receivable | 46,174 | 46,174 | ||
Inventory | 535 | 535 | ||
Other current assets | 6,531 | 6,346 | ||
Total current assets | 492,781 | 150,421 | ||
Oil and gas properties, full cost method of accounting: | ||||
Proved | 9,481,859 | 9,375,898 | ||
Less: accumulated depreciation, depletion and amortization | (8,796,412) | (8,603,955) | ||
Net proved oil and gas properties | 685,447 | 771,943 | ||
Unevaluated | 421,429 | 440,043 | ||
Other property and equipment, net | 28,667 | 29,289 | ||
Other assets, net | 18,257 | 18,473 | ||
Total assets | 1,646,581 | 1,410,169 | ||
Current liabilities: | ||||
Accounts payable to vendors | 38,200 | 82,207 | ||
Undistributed oil and gas proceeds | 3,875 | 5,992 | ||
Accrued interest | 22,901 | 9,022 | ||
Asset retirement obligations | 23,465 | 21,291 | ||
Current portion of long-term debt | 459,201 | 0 | ||
Other current liabilities | 32,671 | 40,712 | ||
Total current liabilities | 580,313 | 159,224 | ||
Long-term debt | 1,063,090 | 1,060,955 | ||
Asset retirement obligations | 209,848 | 204,575 | ||
Other long-term liabilities | 18,329 | 25,204 | ||
Total liabilities | $ 1,871,580 | $ 1,449,958 | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Common stock, $.01 par value; authorized 150,000,000 shares; issued 55,806,817 and 55,302,325 shares, respectively | $ 558 | $ 553 | ||
Treasury stock (16,582 shares, at cost) | (860) | (860) | ||
Additional paid-in capital | 1,650,969 | 1,648,189 | ||
Accumulated deficit | (1,894,407) | (1,705,623) | ||
Accumulated other comprehensive income | 18,741 | 17,952 | $ 70,800 | $ 83,300 |
Total stockholders’ equity | (224,999) | (39,789) | ||
Total liabilities and stockholders’ equity | $ 1,646,581 | $ 1,410,169 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 55,806,817 | 55,302,325 |
Treasury stock, shares (in shares) | 16,582 | 16,582 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating revenue: | ||
Oil production | $ 60,275 | $ 107,507 |
Natural gas production | 15,173 | 28,337 |
Natural gas liquids production | 4,735 | 12,366 |
Other operational income | 356 | 2,160 |
Derivative income, net | 138 | 3,128 |
Total operating revenue | 80,677 | 153,498 |
Operating expenses: | ||
Lease operating expenses | 19,547 | 27,577 |
Transportation, processing and gathering expenses | 841 | 17,703 |
Production taxes | 481 | 2,515 |
Depreciation, depletion and amortization | 61,558 | 86,422 |
Write-down of oil and gas properties | 129,204 | 491,412 |
Accretion expense | 9,983 | 6,409 |
Salaries, general and administrative expenses | 13,707 | 17,007 |
Incentive compensation expense | 4,979 | 1,563 |
Other operational expenses | 12,527 | 84 |
Total operating expenses | 252,827 | 650,692 |
Loss from operations | (172,150) | (497,194) |
Other (income) expenses: | ||
Interest expense | 15,241 | 10,365 |
Interest income | (114) | (122) |
Other income | (298) | (143) |
Other expense | 2 | 0 |
Total other expenses | 14,831 | 10,100 |
Loss before income taxes | (186,981) | (507,294) |
Provision (benefit) for income taxes: | ||
Current | (1,074) | 0 |
Deferred | 2,877 | (179,906) |
Total income taxes | 1,803 | (179,906) |
Net loss | $ (188,784) | $ (327,388) |
Basic loss per share (usd per share) | $ (3.39) | $ (5.93) |
Diluted loss per share (usd per share) | $ (3.39) | $ (5.93) |
Average shares outstanding (in shares) | 55,713 | 55,181 |
Average shares outstanding assuming dilution (in shares) | 55,713 | 55,181 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (188,784) | $ (327,388) |
Other comprehensive loss, net of tax effect: | ||
Derivatives | (5,285) | (8,858) |
Foreign currency translation | 6,074 | (3,645) |
Comprehensive loss | $ (187,995) | $ (339,891) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (188,784) | $ (327,388) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 61,558 | 86,422 |
Write-down of oil and gas properties | 129,204 | 491,412 |
Accretion expense | 9,983 | 6,409 |
Deferred income tax provision (benefit) | 2,877 | (179,906) |
Settlement of asset retirement obligations | (4,667) | (17,145) |
Non-cash stock compensation expense | 2,312 | 2,640 |
Non-cash derivative expense | 192 | 1,511 |
Non-cash interest expense | 4,635 | 4,318 |
Other non-cash expense | 6,081 | 0 |
Change in current income taxes | (1,074) | 7,188 |
Decrease in accounts receivable | 5,845 | 8,206 |
(Increase) decrease in other current assets | (185) | 1,883 |
Decrease in accounts payable | (2,138) | (8,657) |
Increase in other current liabilities | 3,898 | 6,889 |
Other | (298) | (260) |
Net cash provided by operating activities | 29,439 | 83,522 |
Cash flows from investing activities: | ||
Investment in oil and gas properties | (129,859) | (169,895) |
Investment in fixed and other assets | (496) | (662) |
Change in restricted funds | 1,045 | 177,642 |
Net cash (used in) provided by investing activities | (129,310) | 7,085 |
Cash flows from financing activities: | ||
Proceeds from bank borrowings | 477,000 | 5,000 |
Repayments of bank borrowings | (20,000) | (5,000) |
Repayments of building loan | (95) | 0 |
Net payments for share-based compensation | (650) | (2,991) |
Net cash provided by (used in) financing activities | 456,255 | (2,991) |
Effect of exchange rate changes on cash | (9) | 24 |
Net change in cash and cash equivalents | 356,375 | 87,640 |
Cash and cash equivalents, beginning of period | 10,759 | 74,488 |
Cash and cash equivalents, end of period | $ 367,134 | $ 162,128 |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Interim Financial Statements The condensed consolidated financial statements of Stone Energy Corporation (“Stone”) and its subsidiaries as of March 31, 2016 and for the three month periods ended March 31, 2016 and 2015 are unaudited and reflect all adjustments (consisting only of normal recurring adjustments), which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. The condensed consolidated balance sheet as of December 31, 2015 has been derived from the audited financial statements as of that date contained in our Annual Report on Form 10-K for the year ended December 31, 2015 (our “ 2015 Annual Report on Form 10-K”). The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management’s discussion and analysis of financial condition and results of operations, contained in our 2015 Annual Report on Form 10-K. The results of operations for the three month period ended March 31, 2016 are not necessarily indicative of future financial results. |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Going Concern | Going Concern The accompanying condensed consolidated financial statements have been prepared assuming the company will continue as a going concern, which contemplates continuity of operations, realization of assets and the satisfaction of liabilities in the normal course of business for the twelve month period following the date of these condensed consolidated financial statements. As such, the accompanying condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should the company be unable to continue as a going concern. The level of our indebtedness of $1,544 million and the current commodity price environment have presented challenges as they relate to our ability to comply with the covenants in the agreements governing our indebtedness. At March 31, 2016, we were in compliance with all of our financial covenants under our bank credit facility and the indentures governing our outstanding notes. However, given the lower commodity prices and our reduced hedged position in 2016, we anticipate that we will exceed the Consolidated Funded Debt to consolidated EBITDA financial covenant of 3.75 to 1 set forth in our bank credit agreement at the end of the second quarter of 2016, which would require us to seek a waiver or amendment from our bank lenders. If we are unable to reach an agreement with our banks or find acceptable alternative financing, it may lead to an event of default under our bank credit facility. If following an event of default, the banks were to accelerate repayment under the bank credit facility, it would result in an event of default and may result in the acceleration of our other debt instruments. These conditions raise substantial doubt about our ability to continue as a going concern. Additionally, on April 13, 2016 , our borrowing base under our bank credit facility was reduced from $500 million to $300 million . On that date, we had $457 million of outstanding borrowings and $18.3 million of outstanding letters of credit, or $175.3 million in excess of the redetermined borrowing base (referred to as a borrowing base deficiency). Our agreement with the banks provides that within 30 days after notification of a borrowing base deficiency, we must elect to cure the borrowing base deficiency through any combination of the following actions: (1) repay amounts outstanding sufficient to cure the deficiency within 10 days after our written election to do so; (2) add additional oil and gas properties acceptable to the banks to the borrowing base and take such actions necessary to grant the banks a mortgage in the properties within 30 days after our written election to do so; and/or (3) arrange to pay the deficiency in six equal monthly installments. We have not taken any action or made an election of actions to be taken to cure the borrowing base deficiency. We are in discussions with our banks regarding an amendment to our bank credit facility to address the potential covenant issue. We cannot provide any assurances that we will reach an agreement with the lenders under our bank credit facility on a waiver or amendment on a timely basis, or on satisfactory terms, to alleviate any non-compliance with our debt covenants. In addition to our borrowings under our bank credit facility, we have $1,075 million of senior indebtedness, including our 1¾% Senior Convertible Notes due in March 2017 (the "2017 Convertible Notes"). We are in the process of analyzing various strategic alternatives to address our liquidity and capital structure, including strategic and refinancing alternatives through a private restructuring, asset sales and a prepackaged or prearranged bankruptcy filing. We cannot provide any assurances that we will be able to complete a private restructuring or asset sales on satisfactory terms to provide the liquidity to restructure or pay down our senior indebtedness. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the indicated periods: Three Months Ended 2016 2015 (In thousands, except per share data) Income (numerator): Basic: Net loss $ (188,784 ) $ (327,388 ) Net income attributable to participating securities — — Net loss attributable to common stock - basic $ (188,784 ) $ (327,388 ) Diluted: Net loss $ (188,784 ) $ (327,388 ) Net income attributable to participating securities — — Net loss attributable to common stock - diluted $ (188,784 ) $ (327,388 ) Weighted average shares (denominator): Weighted average shares - basic 55,713 55,181 Dilutive effect of stock options — — Dilutive effect of convertible notes — — Weighted average shares - diluted 55,713 55,181 Basic loss per share $ (3.39 ) $ (5.93 ) Diluted loss per share $ (3.39 ) $ (5.93 ) All outstanding stock options were considered antidilutive during the three months ended March 31, 2016 (approximately 129,000 shares) and during the three months ended March 31, 2015 (approximately 204,000 shares) because we had net losses for such periods. During the three months ended March 31, 2016 and 2015 , approximately 504,000 shares and 370,000 shares of our common stock, respectively, were issued from authorized shares upon the lapsing of forfeiture restrictions of restricted stock for employees and nonemployee directors. For the three months ended March 31, 2016 and 2015 , the 2017 Convertible Notes had no dilutive effect on the diluted earnings per share computation as we had net losses for such periods. For the three months ended March 31, 2016 and 2015 , the average price of our common stock was less than the strike price of the Sold Warrants (as defined in Note 5 – Debt ) and therefore, such warrants were not dilutive for such periods. Based on the terms of the Purchased Call Options (as defined in Note 5 – Debt ), such call options are antidilutive and therefore were not included in the calculation of diluted earnings per share. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Our hedging strategy is designed to protect our near and intermediate term cash flows from future declines in oil and natural gas prices. This protection is essential to capital budget planning, which is sensitive to expenditures that must be committed to in advance, such as rig contracts and the purchase of tubular goods. We enter into derivative transactions to secure a commodity price for a portion of our expected future production that is acceptable at the time of the transaction. These derivatives are generally designated as cash flow hedges upon entering into the contracts. We do not enter into derivative transactions for trading purposes. We have no fair value hedges. The nature of a derivative instrument must be evaluated to determine if it qualifies as a hedging instrument. If the instrument qualifies as a hedging instrument, it is recorded as either an asset or liability measured at fair value and subsequent changes in the derivative’s fair value are recognized in stockholders’ equity through other comprehensive income (loss), net of related taxes, to the extent the hedge is considered effective. Monthly settlements of effective hedges are reflected in revenue from oil and natural gas production and cash flows from operating activities. Instruments not qualifying as hedging instruments are recorded in our balance sheet at fair value and subsequent changes in fair value are recognized in earnings through derivative expense (income). Monthly settlements of ineffective hedges and derivative instruments not qualifying as hedging instruments are recognized in earnings through derivative expense (income) and cash flows from operating activities. We have entered into fixed-price swaps and costless collars with various counterparties for a portion of our expected 2016 oil and natural gas production from the Gulf Coast Basin. Our fixed-price oil swap settlements and oil collar settlements are based on an average of the New York Mercantile Exchange (“NYMEX”) closing price for West Texas Intermediate crude oil during the entire calendar month. Our fixed-price gas swap settlements are based on the NYMEX price for the last day of a respective contract month. Swaps typically provide for monthly payments by us if prices rise above the swap price or monthly payments to us if prices fall below the swap price. Collar contracts typically require payments by us if the NYMEX average closing price is above the ceiling price or payments to us if the NYMEX average closing price is below the floor price. Our fixed-price swap contracts are with The Toronto-Dominion Bank, The Bank of Nova Scotia and Natixis. Our oil collar contract is with The Bank of Nova Scotia. All of our derivative transactions have been carried out in the over-the-counter market and are not typically subject to margin-deposit requirements. The use of derivative instruments involves the risk that the counterparties will be unable to meet the financial terms of such transactions. The counterparties to all of our derivative instruments have an "investment grade" credit rating. We monitor the credit ratings of our derivative counterparties on an ongoing basis. Although we have entered into derivative contracts with multiple counterparties to mitigate our exposure to any individual counterparty, if any of our counterparties were to default on its obligations to us under the derivative contracts or seek bankruptcy protection, we may not realize the benefit of some of our derivative instruments and incur a loss. At May 4, 2016 , two counterparties accounted for approximately 86% of our contracted volumes. All of our derivative instruments are with lenders under our bank credit facility. The following tables illustrate our derivative positions for calendar year 2016 as of May 4, 2016 : Fixed-Price Swaps (NYMEX) Natural Gas Oil Daily Volume (MMBtus/d) Swap Price ($) Daily Volume (Bbls/d) Swap Price ($) 2016 10,000 4.110 1,000 49.75 2016 10,000 4.120 1,000 52.78 2016 1,000 90.00 Costless Collar (NYMEX) Oil Daily Volume (Bbls/d) Floor Price ($) Ceiling Price ($) 2016 1,000 45.00 54.75 We previously discontinued hedge accounting for certain 2015 natural gas contracts, as it became no longer probable that our Gulf of Mexico ("GOM") natural gas production would be sufficient to cover the GOM volumes hedged. Additionally, a small portion of our cash flow hedges are typically determined to be ineffective because oil and natural gas price changes in the markets in which we sell our products are not 100% correlative to changes in the underlying price basis indicative in the derivative contract. At March 31, 2016 , we had accumulated other comprehensive income of $18.7 million , net of tax, related to the fair value of our effective cash flow hedges that were outstanding as of March 31, 2016 . The $18.7 million of accumulated other comprehensive income will be reclassified into earnings in the next 12 months. Derivatives qualifying as hedging instruments: The following tables disclose the location and fair value amounts of derivatives qualifying as hedging instruments, as reported in our balance sheet, at March 31, 2016 and December 31, 2015 : Fair Value of Derivatives Qualifying as Hedging Instruments at March 31, 2016 (In millions) Asset Derivatives Liability Derivatives Description Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Current assets: Fair value of derivative contracts $ 30.2 Current liabilities: Fair value of derivative contracts $ — Long-term assets: Fair value of derivative contracts — Long-term liabilities: Fair value of derivative contracts — $ 30.2 $ — Fair Value of Derivatives Qualifying as Hedging Instruments at December 31, 2015 (In millions) Asset Derivatives Liability Derivatives Description Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Current assets: Fair value of derivative contracts $ 38.6 Current liabilities: Fair value of derivative contracts $ — Long-term assets: Fair value of derivative contracts — Long-term liabilities: Fair value of derivative contracts — $ 38.6 $ — The following table discloses the before tax effect of derivatives qualifying as hedging instruments, as reported in the statement of operations, for the three month periods ended March 31, 2016 and 2015 : Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Three Months Ended March 31, 2016 and 2015 (In millions) Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a) Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) 2016 2015 Location 2016 2015 Location 2016 2015 Commodity contracts $ 4.6 $ 22.9 Operating revenue - oil/natural gas production $ 12.8 $ 36.8 Derivative income (expense), net $ 0.1 $ 0.9 Total $ 4.6 $ 22.9 $ 12.8 $ 36.8 $ 0.1 $ 0.9 (a) For the three months ended March 31, 2016 , effective hedging contracts increased oil revenue by $9.3 million and increased natural gas revenue by $3.5 million . For the three months ended March 31, 2015 , effective hedging contracts increased oil revenue by $34.0 million and increased natural gas revenue by $2.8 million . Derivatives not qualifying as hedging instruments: Gains or losses related to changes in fair value and cash settlements for derivatives not qualifying as hedging instruments are recorded as derivative income (expense) in the statement of operations. The following table discloses the before tax effect of our derivatives not qualifying as hedging instruments on the statement of operations, for the three month periods ended March 31, 2016 and 2015 . Gain (Loss) Recognized in Derivative Income (Expense) (In millions) Three Months Ended Description 2016 2015 Commodity contracts: Cash settlements $ — $ 3.1 Change in fair value — (0.9 ) Total gain on non-qualifying hedges $ — $ 2.2 Offsetting of derivative assets and liabilities: Our derivative contracts are subject to netting arrangements. It is our policy to not offset our derivative contracts in presenting the fair value of these contracts as assets and liabilities in our balance sheet. As of March 31, 2016 and December 31, 2015 , all of our derivative contracts were in an asset position and therefore, there was no potential impact of the rights of offset. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our debt balances (net of related unamortized discounts and debt issuance costs) as of March 31, 2016 and December 31, 2015 were as follows: March 31, December 31, (In millions) 1 3 ⁄ 4 % Senior Convertible Notes due 2017 $ 283.5 $ 279.3 7 1 ⁄ 2 % Senior Notes due 2022 770.2 770.0 Revolving credit facility 457.0 — 4.20% Building Loan 11.6 11.7 Total debt 1,522.3 1,061.0 Less: current portion of long-term debt (459.2 ) — Long-term debt $ 1,063.1 $ 1,061.0 Current Portion of Long-Term Debt. As of March 31, 2016, the current portion of long-term debt of $459.2 million consisted of $283.5 million of 2017 Convertible Notes, $175.3 million of outstanding borrowings under the bank credit facility (our borrowing base deficiency) and $0.4 million of principal payments due within one year on the Building Loan. Revolving Credit Facility. On June 24, 2014 , we entered into an amended and restated revolving credit facility with commitments totaling $900 million (subject to borrowing base limitations) through a syndicated bank group, replacing our previous facility. The bank credit facility matures on July 1, 2019 . On March 31, 2016 , we had a $500 million borrowing base under the credit facility, with $457 million of outstanding borrowings and $19.2 million of outstanding letters of credit, leaving $23.8 million of availability under the bank credit facility. The weighted average interest rate under the bank credit facility was approximately 3.5% at March 31, 2016 . Subject to certain exceptions, the bank credit facility is required to be guaranteed by all of our material domestic direct and indirect subsidiaries. As of March 31, 2016 , the bank credit facility was guaranteed by Stone Energy Offshore, L.L.C. (“Stone Offshore”), SEO A LLC and SEO B LLC (collectively, the “Guarantor Subsidiaries”). The borrowing base under the bank credit facility is redetermined semi-annually, typically by May and November, by the lenders, taking into consideration the estimated loan value of our oil and gas properties and those of our subsidiaries that guarantee the bank credit facility in accordance with the lenders’ customary practices for oil and gas loans. In addition, we and the lenders each have discretion at any time, but not more than two additional times in any calendar year, to have the borrowing base redetermined. On April 13, 2016 , we received notice that our borrowing base under the bank credit facility was reduced from $500 million to $300 million . On that date, we had $457 million of outstanding borrowings and $18.3 million of outstanding letters of credit, or $175.3 million in excess of the redetermined borrowing base (referred to as a borrowing base deficiency). Our agreement with the banks provides that within 30 days after notification of a borrowing base deficiency, we must elect to cure the borrowing base deficiency through any combination of the following actions: (1) repay amounts outstanding sufficient to cure the deficiency within 10 days after our written election to do so; (2) add additional oil and gas properties acceptable to the banks to the borrowing base and take such actions necessary to grant the banks a mortgage in the properties within 30 days after our written election to do so; and/or (3) arrange to pay the deficiency in six equal monthly installments. We have not taken any action or made an election of actions to be taken to cure the borrowing base deficiency. The $175.3 million borrowing base deficiency is classified as a current liability at March 31, 2016. The bank credit facility is collateralized by substantially all of our assets and the assets of our material subsidiaries. We are required to mortgage, and grant a security interest in, our oil and natural gas reserves representing at least 80% of the discounted present value of the future net cash flows from our proved oil and natural gas reserves reviewed in determining the borrowing base. Interest on loans under the bank credit facility is calculated using the London Interbank Offering (“LIBOR”) rate or the base rate, at our election. The margin for loans at the LIBOR rate is determined based on borrowing base utilization and ranges from 1.500% to 2.500% . Under the financial covenants of the bank credit facility, we must (1) maintain a ratio of Consolidated Funded Debt to consolidated EBITDA, as defined in the credit agreement, for the preceding four quarterly periods of not greater than 3.75 to 1 and (2) maintain a ratio of consolidated EBITDA to consolidated Net Interest Expense, as defined in the credit agreement, for the preceding four quarterly periods of not less than 2.5 to 1. In addition, our bank credit facility includes certain customary restrictions or requirements with respect to disposition of properties, incurrence of additional debt, change of control and reporting responsibilities. These covenants may limit or prohibit us from paying cash dividends but do allow for limited stock repurchases. These covenants also restrict our ability to prepay other indebtedness under certain circumstances. We were in compliance with all covenants as of March 31, 2016. 2017 Convertible Notes. On March 6, 2012, we issued in a private offering $300 million in aggregate principal amount of the 2017 Convertible Notes to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The 2017 Convertible Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, based on an initial conversion rate of 23.4449 shares of our common stock per $1,000 principal amount of 2017 Convertible Notes, which corresponds to an initial conversion price of approximately $42.65 per share of our common stock. On March 31, 2016 , our closing share price was $0.79 per share. The conversion rate, and thus the conversion price, may be adjusted under certain circumstances as described in the indenture related to the 2017 Convertible Notes. Upon conversion, we will be obligated to pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock. Prior to December 1, 2016, the 2017 Convertible Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date. The 2017 Convertible Notes will be due on March 1, 2017, unless earlier converted or repurchased by us at the option of the holder(s), and interest is payable on the 2017 Convertible Notes each March 1and September 1. On the maturity date, each holder will be entitled to receive $1,000 in cash for each $1,000 in principal amount of 2017 Convertible Notes, together with any accrued and unpaid interest to, but excluding, the maturity date. In connection with the offering, we entered into convertible note hedge transactions with respect to our common stock (the “Purchased Call Options”) with Barclays Capital Inc., acting as agent for Barclays Bank PLC and Bank of America, N.A. (the “Dealers”). We paid an aggregate amount of approximately $70.8 million to the Dealers for the Purchased Call Options. The Purchased Call Options cover, subject to customary antidilution adjustments, approximately 7,033,470 shares of our common stock at a strike price that corresponds to the initial conversion price of the 2017 Convertible Notes, also subject to adjustment, and are exercisable upon conversion of the 2017 Convertible Notes. We also entered into separate warrant transactions whereby, in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act, we sold to the Dealers warrants to acquire, subject to customary antidilution adjustments, approximately 7,033,470 shares of our common stock (the “Sold Warrants”) at a strike price of $55.91 per share of our common stock. We received aggregate proceeds of approximately $40.1 million from the sale of the Sold Warrants to the Dealers. If, upon expiration of the Sold Warrants, the price per share of our common stock, as measured under the Sold Warrants, is greater than the strike price of the Sold Warrants, we will be required to issue, without further consideration, under each Sold Warrant a number of shares of our common stock with a value equal to the amount of such difference. As of March 31, 2016 , the carrying amount of the liability component of the 2017 Convertible Notes of $283.5 million was classified as a current liability. During the three months ended March 31, 2016 , we recognized $3.9 million of interest expense for the amortization of the discount and $0.4 million of interest expense for the amortization of deferred financing costs related to the 2017 Convertible Notes. During the three months ended March 31, 2015 , we recognized $3.6 million of interest expense for the amortization of the discount and $0.3 million of interest expense for the amortization of deferred financing costs related to the 2017 Convertible Notes. During each of the three month periods ended March 31, 2016 and 2015, we recognized $1.3 million of interest expense related to the contractual interest coupon on the 2017 Convertible Notes. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations The change in our asset retirement obligations during the three months ended March 31, 2016 is set forth below: Three Months Ended (In millions) Asset retirement obligations as of the beginning of the period, including current portion $ 225.9 Liabilities incurred 2.1 Liabilities settled (4.7 ) Accretion expense 10.0 Asset retirement obligations as of the end of the period, including current portion $ 233.3 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As a result of the significant declines in commodity prices and the resulting ceiling test write-downs and net losses incurred, we determined during 2015 that it was more likely than not that a portion of our deferred tax assets will not be realized in the future. Accordingly, we established a valuation allowance against a portion of our deferred tax assets. As of March 31, 2016, our valuation allowance totaled $245.5 million. Our effective tax rate for the three months ended March 31, 2016 was 1.0% . This percentage differed from the federal statutory rate of 35.0% primarily due to the establishment of valuation allowances against deferred tax assets. Our assessment of the realizability of our deferred tax assets is based on the weight of all available evidence, both positive and negative, including future reversals of deferred tax liabilities. We had a current income tax receivable of $46.2 million at March 31, 2016, which relates to expected tax refunds from the carryback of net operating losses to previous tax years. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements U.S. Generally Accepted Accounting Principles establish a fair value hierarchy that has three levels based on the reliability of the inputs used to determine the fair value. These levels include: Level 1, defined as inputs such as unadjusted quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for use when little or no market data exists, therefore requiring an entity to develop its own assumptions. As of March 31, 2016 and December 31, 2015 , we held certain financial assets that are required to be measured at fair value on a recurring basis, including our commodity derivative instruments and our investments in marketable securities. We utilize the services of an independent third party to assist us in valuing our derivative instruments. We used the income approach in determining the fair value of our derivative instruments utilizing a proprietary pricing model. The model accounts for our credit risk and the credit risk of our counterparties in the discount rate applied to estimated future cash inflows and outflows. Our swap contracts are included within the Level 2 fair value hierarchy, and our collar contracts are included within the Level 3 fair value hierarchy. Significant unobservable inputs used in establishing fair value for the collars were the volatility impacts in the pricing model as it relates to the call portion of the collar. For a more detailed description of our derivative instruments, see Note 4 – Derivative Instruments and Hedging Activities . We used the market approach in determining the fair value of our investments in marketable securities, which are included within the Level 1 fair value hierarchy. We had no liabilities measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015. The following tables present our assets that are measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 : Fair Value Measurements at March 31, 2016 Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) Marketable securities (Other assets) $ 8.5 $ 8.5 $ — $ — Derivative contracts 30.2 — 28.8 1.4 Total $ 38.7 $ 8.5 $ 28.8 $ 1.4 Fair Value Measurements at December 31, 2015 Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) Marketable securities (Other assets) $ 8.5 $ 8.5 $ — $ — Derivative contracts 38.6 — 36.6 2.0 Total $ 47.1 $ 8.5 $ 36.6 $ 2.0 The table below presents a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2016 . Hedging Contracts, net (In millions) Balance as of January 1, 2016 $ 2.0 Total gains/(losses) (realized or unrealized): Included in earnings 1.0 Included in other comprehensive income (0.5 ) Purchases, sales, issuances and settlements (1.1 ) Transfers in and out of Level 3 — Balance as of March 31, 2016 $ 1.4 The amount of total gains/(losses) for the period included in earnings (derivative income) attributable to the change in unrealized gain/(losses) relating to derivatives still held at March 31, 2016 $ — The fair value of cash and cash equivalents approximated book value at March 31, 2016 and December 31, 2015 . As of March 31, 2016 and December 31, 2015 , the fair value of the liability component of the 2017 Convertible Notes was approximately $225.3 million and $217.1 million , respectively. As of March 31, 2016 and December 31, 2015 , the fair value of the 7 1 ⁄ 2 % Senior Notes due 2022 (the “2022 Notes”) was approximately $209.3 million and $271.3 million , respectively. The fair value of the 2022 Notes was determined based on quotes obtained from brokers, which represent Level 1 inputs. We applied fair value concepts in determining the liability component of the 2017 Convertible Notes (see Note 5 – Debt ) at inception, March 31, 2016 and December 31, 2015 . The fair value of the liability was estimated using an income approach. The significant inputs in these determinations were market interest rates based on quotes obtained from brokers and represent Level 2 inputs. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2016 and 2015 were as follows (in millions): Cash Flow Hedges Foreign Currency Items Total Three Months Ended March 31, 2016 Beginning balance, net of tax $ 24.0 $ (6.0 ) $ 18.0 Other comprehensive income (loss) before reclassifications: Change in fair value of derivatives 4.6 — 4.6 Income tax effect (1.6 ) — (1.6 ) Net of tax 3.0 — 3.0 Amounts reclassified from accumulated other comprehensive income: Operating revenue: oil/natural gas production 12.8 — 12.8 Other operational expenses — (6.0 ) (6.0 ) Income tax effect (4.5 ) — (4.5 ) Net of tax 8.3 (6.0 ) 2.3 Other comprehensive income (loss), net of tax (5.3 ) 6.0 0.7 Ending balance, net of tax $ 18.7 $ — $ 18.7 Cash Flow Hedges Foreign Currency Items Total Three Months Ended March 31, 2015 Beginning balance, net of tax $ 86.8 $ (3.5 ) $ 83.3 Other comprehensive income (loss) before reclassifications: Change in fair value of derivatives 22.9 — 22.9 Foreign currency translations — (3.6 ) (3.6 ) Income tax effect (8.2 ) — (8.2 ) Net of tax 14.7 (3.6 ) 11.1 Amounts reclassified from accumulated other comprehensive income: Operating revenue: oil/natural gas production 36.8 — 36.8 Income tax effect (13.2 ) — (13.2 ) Net of tax 23.6 — 23.6 Other comprehensive loss, net of tax (8.9 ) (3.6 ) (12.5 ) Ending balance, net of tax $ 77.9 $ (7.1 ) $ 70.8 During the three months ended March 31, 2016, we reclassified approximately $6.0 million of losses related to cumulative foreign currency translation adjustments, from accumulated other comprehensive income into other operational expenses, upon the substantial liquidation of our foreign subsidiary, Stone Energy Canada ULC. |
Investment in Oil and Gas Prope
Investment in Oil and Gas Properties | 3 Months Ended |
Mar. 31, 2016 | |
Extractive Industries [Abstract] | |
Investment in Oil and Gas Properties | Investment in Oil and Gas Properties Under the full cost method of accounting, we compare, at the end of each financial reporting period, the present value of estimated future net cash flows from proved reserves (adjusted for hedges and excluding cash flows related to estimated abandonment costs) to the net capitalized costs of proved oil and gas properties, net of related deferred taxes. We refer to this comparison as a ceiling test. If the net capitalized costs of proved oil and gas properties exceed the estimated discounted future net cash flows from proved reserves, we are required to write down the value of our oil and gas properties to the value of the discounted cash flows. At March 31, 2016, our ceiling test computation resulted in a write-down of our U.S. oil and gas properties of $128.9 million based on twelve-month average prices, net of applicable differentials, of $46.72 per Bbl of oil, $2.01 per Mcf of natural gas and $13.65 per Bbl of natural gas liquids ("NGLs"), as compared to December 31, 2015 twelve-month average prices, net of applicable differentials, of $51.16 per Bbl of oil, $2.19 per Mcf of natural gas and $16.40 per Bbl of NGLs. At March 31, 2016, the write-down of oil and gas properties also included $0.3 million related to our Canadian oil and gas properties, which were deemed to be fully impaired at the end of 2015. The write-down at March 31, 2016 was decreased by $23 million as a result of hedges. |
Other Operational Expenses
Other Operational Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Operational Expenses | Other Operational Expenses Included in other operational expenses for the three months ended March 31, 2016 is a $6.0 million loss on the substantial liquidation of our foreign subsidiary, Stone Energy Canada ULC, representing cumulative foreign currency translation adjustments, which were reclassified from accumulated other comprehensive income. See Note 9 - Accumulated Other Comprehensive Income (Loss) . Also included in other operational expenses for the three months ended March 31, 2016 are approximately $6.1 million of rig subsidy charges related to the farm out of the ENSCO 8503 deep water drilling rig and stacking charges related to the Saxon Appalachian rig. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On March 21, 2016, we received notice letters from the Bureau of Ocean Energy Management ("BOEM") stating that BOEM had determined that we no longer qualified for a supplemental bonding waiver under the financial criteria specified in BOEM’s current guidance to lessees. BOEM's notice letters indicate the amount of Stone's supplemental bonding needs could be as much as $565 million . We are in discussions with BOEM to reduce the amount of the supplemental bonding or other forms of financial assurance that the agency may require and the timing of when such bonds or financial assurances may need to be provided. In late March 2016, we proposed a tailored plan to BOEM for financial assurances relating to our abandonment obligations. We currently have approximately $223 million posted in surety bonds in favor of BOEM, third party bonds and letters of credit, all relating to our offshore abandonment obligations. Our proposed tailored plan provides for posting some incremental financial assurances in favor of BOEM and discussions on the approval and implementation of this plan are ongoing. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, " Leases (Topic 842) " to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The standard is effective for public entities for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years, with earlier application permitted. Upon adoption the lessee will apply the new standard retrospectively to all periods presented or retrospectively using a cumulative effect adjustment in the year of adoption. We are currently evaluating the effect that this new standard may have on our financial statements. In March 2016, the FASB issued ASU 2016-09, " Compensation – Stock Compensation (Topic 718) " to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and forfeitures, as well as classification in the statement of cash flows. The standard is effective for public entities for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. Early adoption is permitted for any entity in any interim or annual period. An entity that elects early adoption must adopt all of the amendments in ASU 2016-09 in the same period. We are currently evaluating the effect that this new standard may have on our financial statements, but we do not anticipate the implementation of this new standard will have a material effect. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On April 29, 2016, we were notified by the New York Stock Exchange (“NYSE”) that we were not in compliance with the NYSE's continued listing requirements, as the average closing price of our shares of common stock had fallen below $1.00 per share over a period of 30 consecutive trading days, which is the minimum average share price for continued listing on the NYSE under Rule 802.01C of the NYSE Listed Company Manual. Under the NYSE’s rules, we have six months following receipt of the notification to regain compliance with the minimum share price requirement. |
Guarantor Financial Statements
Guarantor Financial Statements | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor Financial Statements | Guarantor Financial Statements Our Guarantor Subsidiaries, including Stone Offshore, SEO A LLC and SEO B LLC, are unconditional guarantors of the 2017 Convertible Notes and the 2022 Notes. Our other subsidiaries (the “Non-Guarantor Subsidiaries”) have not provided guarantees. The following presents unaudited condensed consolidating financial information as of March 31, 2016 and December 31, 2015 and for the three month periods ended March 31, 2016 and 2015 on an issuer (parent company), Guarantor Subsidiaries, Non-Guarantor Subsidiaries and consolidated basis. Elimination entries presented are necessary to combine the entities. CONDENSED CONSOLIDATING BALANCE SHEET MARCH 31, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 367,133 $ 1 $ — $ — $ 367,134 Accounts receivable 57,106 38,476 885 (54,282 ) 42,185 Fair value of derivative contracts — 30,222 — — 30,222 Current income tax receivable 46,174 — — — 46,174 Inventory 535 — — — 535 Other current assets 6,531 — — — 6,531 Total current assets 477,479 68,699 885 (54,282 ) 492,781 Oil and gas properties, full cost method: Proved 1,891,423 7,544,791 45,645 — 9,481,859 Less: accumulated DD&A (1,891,423 ) (6,859,344 ) (45,645 ) — (8,796,412 ) Net proved oil and gas properties — 685,447 — — 685,447 Unevaluated 261,724 159,705 — — 421,429 Other property and equipment, net 28,667 — — — 28,667 Other assets, net 17,460 797 — — 18,257 Investment in subsidiary 614,540 — — (614,540 ) — Total assets $ 1,399,870 $ 914,648 $ 885 $ (668,822 ) $ 1,646,581 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable to vendors $ 24,915 $ 67,567 $ — $ (54,282 ) $ 38,200 Undistributed oil and gas proceeds 2,800 1,075 — — 3,875 Accrued interest 22,901 — — — 22,901 Asset retirement obligations — 23,465 — — 23,465 Current portion of long-term debt 459,201 — — — 459,201 Other current liabilities 32,335 336 — — 32,671 Total current liabilities 542,152 92,443 — (54,282 ) 580,313 Long-term debt 1,063,090 — — — 1,063,090 Asset retirement obligations 1,298 208,550 — — 209,848 Other long-term liabilities 18,329 — — — 18,329 Total liabilities 1,624,869 300,993 — (54,282 ) 1,871,580 Commitments and contingencies Stockholders’ equity: Common stock 558 — — — 558 Treasury stock (860 ) — — — (860 ) Additional paid-in capital 1,650,969 1,344,577 109,077 (1,453,654 ) 1,650,969 Accumulated deficit (1,894,407 ) (749,663 ) (108,192 ) 857,855 (1,894,407 ) Accumulated other comprehensive income 18,741 18,741 — (18,741 ) 18,741 Total stockholders’ equity (224,999 ) 613,655 885 (614,540 ) (224,999 ) Total liabilities and stockholders’ equity $ 1,399,870 $ 914,648 $ 885 $ (668,822 ) $ 1,646,581 CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 9,681 $ 2 $ 1,076 $ — $ 10,759 Accounts receivable 10,597 39,190 — (1,756 ) 48,031 Fair value of derivative contracts — 38,576 — — 38,576 Current income tax receivable 46,174 — — — 46,174 Inventory 535 — — — 535 Other current assets 6,313 — 33 — 6,346 Total current assets 73,300 77,768 1,109 (1,756 ) 150,421 Oil and gas properties, full cost method: Proved 1,875,152 7,458,262 42,484 — 9,375,898 Less: accumulated DD&A (1,874,622 ) (6,686,849 ) (42,484 ) — (8,603,955 ) Net proved oil and gas properties 530 771,413 — — 771,943 Unevaluated 253,308 186,735 — — 440,043 Other property and equipment, net 29,289 — — — 29,289 Other assets, net 16,612 826 1,035 — 18,473 Investment in subsidiary 745,033 — 1,088 (746,121 ) — Total assets $ 1,118,072 $ 1,036,742 $ 3,232 $ (747,877 ) $ 1,410,169 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable to vendors $ 16,063 $ 67,901 $ — $ (1,757 ) $ 82,207 Undistributed oil and gas proceeds 5,216 776 — — 5,992 Accrued interest 9,022 — — — 9,022 Asset retirement obligations — 20,400 891 — 21,291 Other current liabilities 40,161 551 — — 40,712 Total current liabilities 70,462 89,628 891 (1,757 ) 159,224 Long-term debt 1,060,955 — — — 1,060,955 Asset retirement obligations 1,240 203,335 — — 204,575 Other long-term liabilities 25,204 — — — 25,204 Total liabilities 1,157,861 292,963 891 (1,757 ) 1,449,958 Commitments and contingencies Stockholders’ equity: Common stock 553 — — — 553 Treasury stock (860 ) — — — (860 ) Additional paid-in capital 1,648,189 1,344,577 109,795 (1,454,372 ) 1,648,189 Accumulated deficit (1,705,623 ) (624,824 ) (95,306 ) 720,130 (1,705,623 ) Accumulated other comprehensive income (loss) 17,952 24,026 (12,148 ) (11,878 ) 17,952 Total stockholders’ equity (39,789 ) 743,779 2,341 (746,120 ) (39,789 ) Total liabilities and stockholders’ equity $ 1,118,072 $ 1,036,742 $ 3,232 $ (747,877 ) $ 1,410,169 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenue: Oil production $ 61 $ 60,214 $ — $ — $ 60,275 Natural gas production 2,467 12,706 — — 15,173 Natural gas liquids production 1,134 3,601 — — 4,735 Other operational income 356 — — — 356 Derivative income, net — 138 — — 138 Total operating revenue 4,018 76,659 — — 80,677 Operating expenses: Lease operating expenses 2,728 16,806 13 — 19,547 Transportation, processing and gathering expenses 1,546 (705 ) — — 841 Production taxes 259 222 — — 481 Depreciation, depletion and amortization 8,594 52,964 — — 61,558 Write-down of oil and gas properties 9,324 119,531 349 — 129,204 Accretion expense 58 9,925 — — 9,983 Salaries, general and administrative expenses 13,907 (200 ) — — 13,707 Incentive compensation expense 4,979 — — — 4,979 Other operational expenses 6,109 337 6,081 — 12,527 Total operating expenses 47,504 198,880 6,443 — 252,827 Loss from operations (43,486 ) (122,221 ) (6,443 ) — (172,150 ) Other (income) expenses: Interest expense 15,241 — — — 15,241 Interest income (114 ) — — — (114 ) Other income (39 ) (259 ) — — (298 ) Other expense 2 — — — 2 Loss from investment in subsidiaries 131,282 — 6,443 (137,725 ) — Total other (income) expenses 146,372 (259 ) 6,443 (137,725 ) 14,831 Loss before taxes (189,858 ) (121,962 ) (12,886 ) 137,725 (186,981 ) Provision (benefit) for income taxes: Current (1,074 ) — — — (1,074 ) Deferred — 2,877 — — 2,877 Total income taxes (1,074 ) 2,877 — — 1,803 Net loss $ (188,784 ) $ (124,839 ) $ (12,886 ) $ 137,725 $ (188,784 ) Comprehensive loss $ (187,995 ) $ (124,839 ) $ (12,886 ) $ 137,725 $ (187,995 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenue: Oil production $ 4,350 $ 103,157 $ — $ — $ 107,507 Natural gas production 16,617 11,720 — — 28,337 Natural gas liquids production 9,879 2,487 — — 12,366 Other operational income 2,160 — — — 2,160 Derivative income, net — 3,128 — — 3,128 Total operating revenue 33,006 120,492 — — 153,498 Operating expenses: Lease operating expenses 4,976 22,601 — — 27,577 Transportation, processing and gathering expenses 16,108 1,595 — — 17,703 Production taxes 2,198 317 — — 2,515 Depreciation, depletion and amortization 42,112 44,310 — — 86,422 Write-down of oil and gas properties 491,412 — — — 491,412 Accretion expense 91 6,318 — — 6,409 Salaries, general and administrative expenses 17,001 1 5 — 17,007 Incentive compensation expense 1,563 — — — 1,563 Other operational expenses 84 — — — 84 Total operating expenses 575,545 75,142 5 — 650,692 Income (loss) from operations (542,539 ) 45,350 (5 ) — (497,194 ) Other (income) expenses: Interest expense 10,344 21 — — 10,365 Interest income (101 ) (16 ) (5 ) — (122 ) Other income (133 ) (10 ) — — (143 ) Income from investment in subsidiaries (29,027 ) — — 29,027 — Total other (income) expenses (18,917 ) (5 ) (5 ) 29,027 10,100 Income (loss) before taxes (523,622 ) 45,355 — (29,027 ) (507,294 ) Provision (benefit) for income taxes: Deferred (196,234 ) 16,328 — — (179,906 ) Total income taxes (196,234 ) 16,328 — — (179,906 ) Net income (loss) $ (327,388 ) $ 29,027 $ — $ (29,027 ) $ (327,388 ) Comprehensive income (loss) $ (339,891 ) $ 29,027 $ — $ (29,027 ) $ (339,891 ) CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2016 (In thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net loss $ (188,784 ) $ (124,839 ) $ (12,886 ) $ 137,725 $ (188,784 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion and amortization 8,594 52,964 — — 61,558 Write-down of oil and gas properties 9,324 119,531 349 — 129,204 Accretion expense 58 9,925 — — 9,983 Deferred income tax provision — 2,877 — — 2,877 Settlement of asset retirement obligations — (3,768 ) (899 ) — (4,667 ) Non-cash stock compensation expense 2,312 — — — 2,312 Non-cash derivative expense — 192 — — 192 Non-cash interest expense 4,635 — — — 4,635 Other non-cash expense — — 6,081 — 6,081 Change in current income taxes (1,074 ) — — — (1,074 ) Non-cash loss from investment in subsidiaries 131,282 — 6,443 (137,725 ) — Change in intercompany receivables/payables (1,657 ) 1,657 — — — (Increase) decrease in accounts receivable (36,703 ) 43,432 (884 ) — 5,845 (Increase) decrease in other current assets (218 ) — 33 — (185 ) Increase (decrease) in accounts payable 45 (2,183 ) — — (2,138 ) Increase in other current liabilities 3,813 85 — — 3,898 Other (39 ) (259 ) — — (298 ) Net cash (used in) provided by operating activities (68,412 ) 99,614 (1,763 ) — 29,439 Cash flows from investing activities: Investment in oil and gas properties (29,895 ) (99,615 ) (349 ) — (129,859 ) Investment in fixed and other assets (496 ) — — — (496 ) Change in restricted funds — — 1,045 — 1,045 Investment in subsidiaries — — 718 (718 ) — Net cash (used in) provided by investing activities (30,391 ) (99,615 ) 1,414 (718 ) (129,310 ) Cash flows from financing activities: Proceeds from bank borrowings 477,000 — — — 477,000 Repayments of bank borrowings (20,000 ) — — — (20,000 ) Repayments of building loan (95 ) — — — (95 ) Equity proceeds from parent — — (718 ) 718 — Net payments for share-based compensation (650 ) — — — (650 ) Net cash provided by (used in) financing activities 456,255 — (718 ) 718 456,255 Effect of exchange rate changes on cash — — (9 ) — (9 ) Net change in cash and cash equivalents 357,452 (1 ) (1,076 ) — 356,375 Cash and cash equivalents, beginning of period 9,681 2 1,076 — 10,759 Cash and cash equivalents, end of period $ 367,133 $ 1 $ — $ — $ 367,134 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (327,388 ) $ 29,027 $ — $ (29,027 ) $ (327,388 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, depletion and amortization 42,112 44,310 — — 86,422 Write-down of oil and gas properties 491,412 — — — 491,412 Accretion expense 91 6,318 — — 6,409 Deferred income tax (benefit) provision (196,234 ) 16,328 — — (179,906 ) Settlement of asset retirement obligations (1 ) (17,144 ) — — (17,145 ) Non-cash stock compensation expense 2,640 — — — 2,640 Non-cash derivative expense — 1,511 — — 1,511 Non-cash interest expense 4,318 — — — 4,318 Change in current income taxes 7,188 — — — 7,188 Non-cash income from investment in subsidiaries (29,027 ) — — 29,027 — Change in intercompany receivables/payables (33,748 ) 25,548 8,200 — — Decrease in accounts receivable 3,606 4,600 — — 8,206 Decrease in other current assets 1,881 — 2 — 1,883 (Increase) decrease in inventory (2,415 ) 2,415 — — — Decrease in accounts payable (1,007 ) (7,650 ) — — (8,657 ) Increase in other current liabilities 6,347 542 — — 6,889 Other (249 ) (11 ) — — (260 ) Net cash (used in) provided by operating activities (30,474 ) 105,794 8,202 — 83,522 Cash flows from investing activities: Investment in oil and gas properties (84,470 ) (77,229 ) (8,196 ) — (169,895 ) Investment in fixed and other assets (662 ) — — — (662 ) Change in restricted funds 177,647 — (5 ) — 177,642 Investment in subsidiaries — — (8,168 ) 8,168 — Net cash provided by (used in) investing activities 92,515 (77,229 ) (16,369 ) 8,168 7,085 Cash flows from financing activities: Proceeds from bank borrowings 5,000 — — — 5,000 Repayments of bank borrowings (5,000 ) — — — (5,000 ) Equity proceeds from parent — — 8,168 (8,168 ) — Net payments for share-based compensation (2,991 ) — — — (2,991 ) Net cash (used in) provided by financing activities (2,991 ) — 8,168 (8,168 ) (2,991 ) Effect of exchange rate changes on cash — — 24 — 24 Net change in cash and cash equivalents 59,050 28,565 25 — 87,640 Cash and cash equivalents, beginning of period 72,886 1,450 152 — 74,488 Cash and cash equivalents, end of period $ 131,936 $ 30,015 $ 177 $ — $ 162,128 |
Earnings Per Share (Policies)
Earnings Per Share (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earning Per Share | For the three months ended March 31, 2016 and 2015 , the 2017 Convertible Notes had no dilutive effect on the diluted earnings per share computation as we had net losses for such periods. For the three months ended March 31, 2016 and 2015 , the average price of our common stock was less than the strike price of the Sold Warrants (as defined in Note 5 – Debt ) and therefore, such warrants were not dilutive for such periods. Based on the terms of the Purchased Call Options (as defined in Note 5 – Debt ), such call options are antidilutive and therefore were not included in the calculation of diluted earnings per share. |
Derivative Instruments and Hedging Activities | The nature of a derivative instrument must be evaluated to determine if it qualifies as a hedging instrument. If the instrument qualifies as a hedging instrument, it is recorded as either an asset or liability measured at fair value and subsequent changes in the derivative’s fair value are recognized in stockholders’ equity through other comprehensive income (loss), net of related taxes, to the extent the hedge is considered effective. Monthly settlements of effective hedges are reflected in revenue from oil and natural gas production and cash flows from operating activities. Instruments not qualifying as hedging instruments are recorded in our balance sheet at fair value and subsequent changes in fair value are recognized in earnings through derivative expense (income). Monthly settlements of ineffective hedges and derivative instruments not qualifying as hedging instruments are recognized in earnings through derivative expense (income) and cash flows from operating activities. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Weighted Average Shares Outstanding Earnings Per Share | The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the indicated periods: Three Months Ended 2016 2015 (In thousands, except per share data) Income (numerator): Basic: Net loss $ (188,784 ) $ (327,388 ) Net income attributable to participating securities — — Net loss attributable to common stock - basic $ (188,784 ) $ (327,388 ) Diluted: Net loss $ (188,784 ) $ (327,388 ) Net income attributable to participating securities — — Net loss attributable to common stock - diluted $ (188,784 ) $ (327,388 ) Weighted average shares (denominator): Weighted average shares - basic 55,713 55,181 Dilutive effect of stock options — — Dilutive effect of convertible notes — — Weighted average shares - diluted 55,713 55,181 Basic loss per share $ (3.39 ) $ (5.93 ) Diluted loss per share $ (3.39 ) $ (5.93 ) |
Derivative Instruments and He24
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Positions | The following tables illustrate our derivative positions for calendar year 2016 as of May 4, 2016 : Fixed-Price Swaps (NYMEX) Natural Gas Oil Daily Volume (MMBtus/d) Swap Price ($) Daily Volume (Bbls/d) Swap Price ($) 2016 10,000 4.110 1,000 49.75 2016 10,000 4.120 1,000 52.78 2016 1,000 90.00 Costless Collar (NYMEX) Oil Daily Volume (Bbls/d) Floor Price ($) Ceiling Price ($) 2016 1,000 45.00 54.75 |
Location and Fair Value Amounts of Derivative Instruments Reported in Balance Sheet | The following tables disclose the location and fair value amounts of derivatives qualifying as hedging instruments, as reported in our balance sheet, at March 31, 2016 and December 31, 2015 : Fair Value of Derivatives Qualifying as Hedging Instruments at March 31, 2016 (In millions) Asset Derivatives Liability Derivatives Description Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Current assets: Fair value of derivative contracts $ 30.2 Current liabilities: Fair value of derivative contracts $ — Long-term assets: Fair value of derivative contracts — Long-term liabilities: Fair value of derivative contracts — $ 30.2 $ — Fair Value of Derivatives Qualifying as Hedging Instruments at December 31, 2015 (In millions) Asset Derivatives Liability Derivatives Description Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Current assets: Fair value of derivative contracts $ 38.6 Current liabilities: Fair value of derivative contracts $ — Long-term assets: Fair value of derivative contracts — Long-term liabilities: Fair value of derivative contracts — $ 38.6 $ — |
Before Tax Effect of Derivative Instruments in Statement of Operations | The following table discloses the before tax effect of derivatives qualifying as hedging instruments, as reported in the statement of operations, for the three month periods ended March 31, 2016 and 2015 : Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Three Months Ended March 31, 2016 and 2015 (In millions) Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a) Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) 2016 2015 Location 2016 2015 Location 2016 2015 Commodity contracts $ 4.6 $ 22.9 Operating revenue - oil/natural gas production $ 12.8 $ 36.8 Derivative income (expense), net $ 0.1 $ 0.9 Total $ 4.6 $ 22.9 $ 12.8 $ 36.8 $ 0.1 $ 0.9 (a) For the three months ended March 31, 2016 , effective hedging contracts increased oil revenue by $9.3 million and increased natural gas revenue by $3.5 million . For the three months ended March 31, 2015 , effective hedging contracts increased oil revenue by $34.0 million and increased natural gas revenue by $2.8 million . |
Gains or Losses Related to Changes in Fair Value and Cash Settlements on Derivatives Not Qualifying as Hedging Instruments | The following table discloses the before tax effect of our derivatives not qualifying as hedging instruments on the statement of operations, for the three month periods ended March 31, 2016 and 2015 . Gain (Loss) Recognized in Derivative Income (Expense) (In millions) Three Months Ended Description 2016 2015 Commodity contracts: Cash settlements $ — $ 3.1 Change in fair value — (0.9 ) Total gain on non-qualifying hedges $ — $ 2.2 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Our debt balances (net of related unamortized discounts and debt issuance costs) as of March 31, 2016 and December 31, 2015 were as follows: March 31, December 31, (In millions) 1 3 ⁄ 4 % Senior Convertible Notes due 2017 $ 283.5 $ 279.3 7 1 ⁄ 2 % Senior Notes due 2022 770.2 770.0 Revolving credit facility 457.0 — 4.20% Building Loan 11.6 11.7 Total debt 1,522.3 1,061.0 Less: current portion of long-term debt (459.2 ) — Long-term debt $ 1,063.1 $ 1,061.0 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Changes in Asset Retirement Obligations | The change in our asset retirement obligations during the three months ended March 31, 2016 is set forth below: Three Months Ended (In millions) Asset retirement obligations as of the beginning of the period, including current portion $ 225.9 Liabilities incurred 2.1 Liabilities settled (4.7 ) Accretion expense 10.0 Asset retirement obligations as of the end of the period, including current portion $ 233.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value Recurring Basis | The following tables present our assets that are measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 : Fair Value Measurements at March 31, 2016 Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) Marketable securities (Other assets) $ 8.5 $ 8.5 $ — $ — Derivative contracts 30.2 — 28.8 1.4 Total $ 38.7 $ 8.5 $ 28.8 $ 1.4 Fair Value Measurements at December 31, 2015 Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) Marketable securities (Other assets) $ 8.5 $ 8.5 $ — $ — Derivative contracts 38.6 — 36.6 2.0 Total $ 47.1 $ 8.5 $ 36.6 $ 2.0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2016 . Hedging Contracts, net (In millions) Balance as of January 1, 2016 $ 2.0 Total gains/(losses) (realized or unrealized): Included in earnings 1.0 Included in other comprehensive income (0.5 ) Purchases, sales, issuances and settlements (1.1 ) Transfers in and out of Level 3 — Balance as of March 31, 2016 $ 1.4 The amount of total gains/(losses) for the period included in earnings (derivative income) attributable to the change in unrealized gain/(losses) relating to derivatives still held at March 31, 2016 $ — |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income Loss | Changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2016 and 2015 were as follows (in millions): Cash Flow Hedges Foreign Currency Items Total Three Months Ended March 31, 2016 Beginning balance, net of tax $ 24.0 $ (6.0 ) $ 18.0 Other comprehensive income (loss) before reclassifications: Change in fair value of derivatives 4.6 — 4.6 Income tax effect (1.6 ) — (1.6 ) Net of tax 3.0 — 3.0 Amounts reclassified from accumulated other comprehensive income: Operating revenue: oil/natural gas production 12.8 — 12.8 Other operational expenses — (6.0 ) (6.0 ) Income tax effect (4.5 ) — (4.5 ) Net of tax 8.3 (6.0 ) 2.3 Other comprehensive income (loss), net of tax (5.3 ) 6.0 0.7 Ending balance, net of tax $ 18.7 $ — $ 18.7 Cash Flow Hedges Foreign Currency Items Total Three Months Ended March 31, 2015 Beginning balance, net of tax $ 86.8 $ (3.5 ) $ 83.3 Other comprehensive income (loss) before reclassifications: Change in fair value of derivatives 22.9 — 22.9 Foreign currency translations — (3.6 ) (3.6 ) Income tax effect (8.2 ) — (8.2 ) Net of tax 14.7 (3.6 ) 11.1 Amounts reclassified from accumulated other comprehensive income: Operating revenue: oil/natural gas production 36.8 — 36.8 Income tax effect (13.2 ) — (13.2 ) Net of tax 23.6 — 23.6 Other comprehensive loss, net of tax (8.9 ) (3.6 ) (12.5 ) Ending balance, net of tax $ 77.9 $ (7.1 ) $ 70.8 |
Guarantor Financial Statements
Guarantor Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET MARCH 31, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 367,133 $ 1 $ — $ — $ 367,134 Accounts receivable 57,106 38,476 885 (54,282 ) 42,185 Fair value of derivative contracts — 30,222 — — 30,222 Current income tax receivable 46,174 — — — 46,174 Inventory 535 — — — 535 Other current assets 6,531 — — — 6,531 Total current assets 477,479 68,699 885 (54,282 ) 492,781 Oil and gas properties, full cost method: Proved 1,891,423 7,544,791 45,645 — 9,481,859 Less: accumulated DD&A (1,891,423 ) (6,859,344 ) (45,645 ) — (8,796,412 ) Net proved oil and gas properties — 685,447 — — 685,447 Unevaluated 261,724 159,705 — — 421,429 Other property and equipment, net 28,667 — — — 28,667 Other assets, net 17,460 797 — — 18,257 Investment in subsidiary 614,540 — — (614,540 ) — Total assets $ 1,399,870 $ 914,648 $ 885 $ (668,822 ) $ 1,646,581 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable to vendors $ 24,915 $ 67,567 $ — $ (54,282 ) $ 38,200 Undistributed oil and gas proceeds 2,800 1,075 — — 3,875 Accrued interest 22,901 — — — 22,901 Asset retirement obligations — 23,465 — — 23,465 Current portion of long-term debt 459,201 — — — 459,201 Other current liabilities 32,335 336 — — 32,671 Total current liabilities 542,152 92,443 — (54,282 ) 580,313 Long-term debt 1,063,090 — — — 1,063,090 Asset retirement obligations 1,298 208,550 — — 209,848 Other long-term liabilities 18,329 — — — 18,329 Total liabilities 1,624,869 300,993 — (54,282 ) 1,871,580 Commitments and contingencies Stockholders’ equity: Common stock 558 — — — 558 Treasury stock (860 ) — — — (860 ) Additional paid-in capital 1,650,969 1,344,577 109,077 (1,453,654 ) 1,650,969 Accumulated deficit (1,894,407 ) (749,663 ) (108,192 ) 857,855 (1,894,407 ) Accumulated other comprehensive income 18,741 18,741 — (18,741 ) 18,741 Total stockholders’ equity (224,999 ) 613,655 885 (614,540 ) (224,999 ) Total liabilities and stockholders’ equity $ 1,399,870 $ 914,648 $ 885 $ (668,822 ) $ 1,646,581 CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 9,681 $ 2 $ 1,076 $ — $ 10,759 Accounts receivable 10,597 39,190 — (1,756 ) 48,031 Fair value of derivative contracts — 38,576 — — 38,576 Current income tax receivable 46,174 — — — 46,174 Inventory 535 — — — 535 Other current assets 6,313 — 33 — 6,346 Total current assets 73,300 77,768 1,109 (1,756 ) 150,421 Oil and gas properties, full cost method: Proved 1,875,152 7,458,262 42,484 — 9,375,898 Less: accumulated DD&A (1,874,622 ) (6,686,849 ) (42,484 ) — (8,603,955 ) Net proved oil and gas properties 530 771,413 — — 771,943 Unevaluated 253,308 186,735 — — 440,043 Other property and equipment, net 29,289 — — — 29,289 Other assets, net 16,612 826 1,035 — 18,473 Investment in subsidiary 745,033 — 1,088 (746,121 ) — Total assets $ 1,118,072 $ 1,036,742 $ 3,232 $ (747,877 ) $ 1,410,169 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable to vendors $ 16,063 $ 67,901 $ — $ (1,757 ) $ 82,207 Undistributed oil and gas proceeds 5,216 776 — — 5,992 Accrued interest 9,022 — — — 9,022 Asset retirement obligations — 20,400 891 — 21,291 Other current liabilities 40,161 551 — — 40,712 Total current liabilities 70,462 89,628 891 (1,757 ) 159,224 Long-term debt 1,060,955 — — — 1,060,955 Asset retirement obligations 1,240 203,335 — — 204,575 Other long-term liabilities 25,204 — — — 25,204 Total liabilities 1,157,861 292,963 891 (1,757 ) 1,449,958 Commitments and contingencies Stockholders’ equity: Common stock 553 — — — 553 Treasury stock (860 ) — — — (860 ) Additional paid-in capital 1,648,189 1,344,577 109,795 (1,454,372 ) 1,648,189 Accumulated deficit (1,705,623 ) (624,824 ) (95,306 ) 720,130 (1,705,623 ) Accumulated other comprehensive income (loss) 17,952 24,026 (12,148 ) (11,878 ) 17,952 Total stockholders’ equity (39,789 ) 743,779 2,341 (746,120 ) (39,789 ) Total liabilities and stockholders’ equity $ 1,118,072 $ 1,036,742 $ 3,232 $ (747,877 ) $ 1,410,169 |
Condensed Consolidating Statement of Operations | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenue: Oil production $ 61 $ 60,214 $ — $ — $ 60,275 Natural gas production 2,467 12,706 — — 15,173 Natural gas liquids production 1,134 3,601 — — 4,735 Other operational income 356 — — — 356 Derivative income, net — 138 — — 138 Total operating revenue 4,018 76,659 — — 80,677 Operating expenses: Lease operating expenses 2,728 16,806 13 — 19,547 Transportation, processing and gathering expenses 1,546 (705 ) — — 841 Production taxes 259 222 — — 481 Depreciation, depletion and amortization 8,594 52,964 — — 61,558 Write-down of oil and gas properties 9,324 119,531 349 — 129,204 Accretion expense 58 9,925 — — 9,983 Salaries, general and administrative expenses 13,907 (200 ) — — 13,707 Incentive compensation expense 4,979 — — — 4,979 Other operational expenses 6,109 337 6,081 — 12,527 Total operating expenses 47,504 198,880 6,443 — 252,827 Loss from operations (43,486 ) (122,221 ) (6,443 ) — (172,150 ) Other (income) expenses: Interest expense 15,241 — — — 15,241 Interest income (114 ) — — — (114 ) Other income (39 ) (259 ) — — (298 ) Other expense 2 — — — 2 Loss from investment in subsidiaries 131,282 — 6,443 (137,725 ) — Total other (income) expenses 146,372 (259 ) 6,443 (137,725 ) 14,831 Loss before taxes (189,858 ) (121,962 ) (12,886 ) 137,725 (186,981 ) Provision (benefit) for income taxes: Current (1,074 ) — — — (1,074 ) Deferred — 2,877 — — 2,877 Total income taxes (1,074 ) 2,877 — — 1,803 Net loss $ (188,784 ) $ (124,839 ) $ (12,886 ) $ 137,725 $ (188,784 ) Comprehensive loss $ (187,995 ) $ (124,839 ) $ (12,886 ) $ 137,725 $ (187,995 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenue: Oil production $ 4,350 $ 103,157 $ — $ — $ 107,507 Natural gas production 16,617 11,720 — — 28,337 Natural gas liquids production 9,879 2,487 — — 12,366 Other operational income 2,160 — — — 2,160 Derivative income, net — 3,128 — — 3,128 Total operating revenue 33,006 120,492 — — 153,498 Operating expenses: Lease operating expenses 4,976 22,601 — — 27,577 Transportation, processing and gathering expenses 16,108 1,595 — — 17,703 Production taxes 2,198 317 — — 2,515 Depreciation, depletion and amortization 42,112 44,310 — — 86,422 Write-down of oil and gas properties 491,412 — — — 491,412 Accretion expense 91 6,318 — — 6,409 Salaries, general and administrative expenses 17,001 1 5 — 17,007 Incentive compensation expense 1,563 — — — 1,563 Other operational expenses 84 — — — 84 Total operating expenses 575,545 75,142 5 — 650,692 Income (loss) from operations (542,539 ) 45,350 (5 ) — (497,194 ) Other (income) expenses: Interest expense 10,344 21 — — 10,365 Interest income (101 ) (16 ) (5 ) — (122 ) Other income (133 ) (10 ) — — (143 ) Income from investment in subsidiaries (29,027 ) — — 29,027 — Total other (income) expenses (18,917 ) (5 ) (5 ) 29,027 10,100 Income (loss) before taxes (523,622 ) 45,355 — (29,027 ) (507,294 ) Provision (benefit) for income taxes: Deferred (196,234 ) 16,328 — — (179,906 ) Total income taxes (196,234 ) 16,328 — — (179,906 ) Net income (loss) $ (327,388 ) $ 29,027 $ — $ (29,027 ) $ (327,388 ) Comprehensive income (loss) $ (339,891 ) $ 29,027 $ — $ (29,027 ) $ (339,891 ) |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2016 (In thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net loss $ (188,784 ) $ (124,839 ) $ (12,886 ) $ 137,725 $ (188,784 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion and amortization 8,594 52,964 — — 61,558 Write-down of oil and gas properties 9,324 119,531 349 — 129,204 Accretion expense 58 9,925 — — 9,983 Deferred income tax provision — 2,877 — — 2,877 Settlement of asset retirement obligations — (3,768 ) (899 ) — (4,667 ) Non-cash stock compensation expense 2,312 — — — 2,312 Non-cash derivative expense — 192 — — 192 Non-cash interest expense 4,635 — — — 4,635 Other non-cash expense — — 6,081 — 6,081 Change in current income taxes (1,074 ) — — — (1,074 ) Non-cash loss from investment in subsidiaries 131,282 — 6,443 (137,725 ) — Change in intercompany receivables/payables (1,657 ) 1,657 — — — (Increase) decrease in accounts receivable (36,703 ) 43,432 (884 ) — 5,845 (Increase) decrease in other current assets (218 ) — 33 — (185 ) Increase (decrease) in accounts payable 45 (2,183 ) — — (2,138 ) Increase in other current liabilities 3,813 85 — — 3,898 Other (39 ) (259 ) — — (298 ) Net cash (used in) provided by operating activities (68,412 ) 99,614 (1,763 ) — 29,439 Cash flows from investing activities: Investment in oil and gas properties (29,895 ) (99,615 ) (349 ) — (129,859 ) Investment in fixed and other assets (496 ) — — — (496 ) Change in restricted funds — — 1,045 — 1,045 Investment in subsidiaries — — 718 (718 ) — Net cash (used in) provided by investing activities (30,391 ) (99,615 ) 1,414 (718 ) (129,310 ) Cash flows from financing activities: Proceeds from bank borrowings 477,000 — — — 477,000 Repayments of bank borrowings (20,000 ) — — — (20,000 ) Repayments of building loan (95 ) — — — (95 ) Equity proceeds from parent — — (718 ) 718 — Net payments for share-based compensation (650 ) — — — (650 ) Net cash provided by (used in) financing activities 456,255 — (718 ) 718 456,255 Effect of exchange rate changes on cash — — (9 ) — (9 ) Net change in cash and cash equivalents 357,452 (1 ) (1,076 ) — 356,375 Cash and cash equivalents, beginning of period 9,681 2 1,076 — 10,759 Cash and cash equivalents, end of period $ 367,133 $ 1 $ — $ — $ 367,134 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (327,388 ) $ 29,027 $ — $ (29,027 ) $ (327,388 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, depletion and amortization 42,112 44,310 — — 86,422 Write-down of oil and gas properties 491,412 — — — 491,412 Accretion expense 91 6,318 — — 6,409 Deferred income tax (benefit) provision (196,234 ) 16,328 — — (179,906 ) Settlement of asset retirement obligations (1 ) (17,144 ) — — (17,145 ) Non-cash stock compensation expense 2,640 — — — 2,640 Non-cash derivative expense — 1,511 — — 1,511 Non-cash interest expense 4,318 — — — 4,318 Change in current income taxes 7,188 — — — 7,188 Non-cash income from investment in subsidiaries (29,027 ) — — 29,027 — Change in intercompany receivables/payables (33,748 ) 25,548 8,200 — — Decrease in accounts receivable 3,606 4,600 — — 8,206 Decrease in other current assets 1,881 — 2 — 1,883 (Increase) decrease in inventory (2,415 ) 2,415 — — — Decrease in accounts payable (1,007 ) (7,650 ) — — (8,657 ) Increase in other current liabilities 6,347 542 — — 6,889 Other (249 ) (11 ) — — (260 ) Net cash (used in) provided by operating activities (30,474 ) 105,794 8,202 — 83,522 Cash flows from investing activities: Investment in oil and gas properties (84,470 ) (77,229 ) (8,196 ) — (169,895 ) Investment in fixed and other assets (662 ) — — — (662 ) Change in restricted funds 177,647 — (5 ) — 177,642 Investment in subsidiaries — — (8,168 ) 8,168 — Net cash provided by (used in) investing activities 92,515 (77,229 ) (16,369 ) 8,168 7,085 Cash flows from financing activities: Proceeds from bank borrowings 5,000 — — — 5,000 Repayments of bank borrowings (5,000 ) — — — (5,000 ) Equity proceeds from parent — — 8,168 (8,168 ) — Net payments for share-based compensation (2,991 ) — — — (2,991 ) Net cash (used in) provided by financing activities (2,991 ) — 8,168 (8,168 ) (2,991 ) Effect of exchange rate changes on cash — — 24 — 24 Net change in cash and cash equivalents 59,050 28,565 25 — 87,640 Cash and cash equivalents, beginning of period 72,886 1,450 152 — 74,488 Cash and cash equivalents, end of period $ 131,936 $ 30,015 $ 177 $ — $ 162,128 |
Going Concern Going Concern (De
Going Concern Going Concern (Details) | 3 Months Ended | |||
Mar. 31, 2016USD ($) | Jun. 30, 2016 | Apr. 13, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,544,000,000 | |||
Long-term debt | 1,522,300,000 | $ 1,061,000,000 | ||
Fair value of amount outstanding | 457,000,000 | |||
Current portion of long-term debt | $ 459,201,000 | $ 0 | ||
Covenant Compliance | ||||
Debt Instrument [Line Items] | ||||
Consolidated funded debt to consolidated EBITDA ratio | 3.75 | |||
Convertible Debt | 1.75% Senior Notes due 2017 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.75% | 1.75% | ||
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 457,000,000 | $ 0 | ||
Borrowing base | 500,000,000 | |||
Outstanding borrowing under bank credit facility | 19,200,000 | |||
Current portion of long-term debt | $ 175,300,000 | |||
Period in which outstanding amount has to be repaid to cure deficiency | 10 days | |||
Period in which bank has to add new properties to borrowing base and has to grant mortgage to banks | 30 days | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,075,000,000 | |||
Scenario, Forecast | Covenant Compliance | ||||
Debt Instrument [Line Items] | ||||
Consolidated funded debt to consolidated EBITDA ratio | 3.75 | |||
Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Fair value of amount outstanding | $ 457,000,000 | |||
Subsequent Event | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing base | 300,000,000 | |||
Outstanding borrowing under bank credit facility | 18,300,000 | |||
Current portion of long-term debt | $ 175,300,000 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Weighted Average Shares Outstanding and Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Basic: | ||
Net loss | $ (188,784) | $ (327,388) |
Net income attributable to participating securities | 0 | 0 |
Net loss attributable to common stock - basic | (188,784) | (327,388) |
Diluted: | ||
Net loss | (188,784) | (327,388) |
Net income attributable to participating securities | 0 | 0 |
Net loss attributable to common stock - diluted | $ (188,784) | $ (327,388) |
Weighted average shares (denominator): | ||
Weighted average shares - basic (in shares) | 55,713 | 55,181 |
Dilutive effect of stock options (in shares) | 0 | 0 |
Dilutive effect of convertible notes (in shares) | 0 | 0 |
Weighted average shares - diluted (in shares) | 55,713 | 55,181 |
Basic loss per share (usd per share) | $ (3.39) | $ (5.93) |
Diluted loss per share (usd per share) | $ (3.39) | $ (5.93) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Antidilutive stock options outstanding (in shares) | 129,000 | 204,000 |
Shares of common stock issued upon vesting of restricted stock (in shares) | 504,000 | 370,000 |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities - Hedging Positions (Detail) - Subsequent Event - Designated as Hedging Instrument | May. 04, 2016MBbls$ / MMBTU$ / bbl |
Fixed Price Swaps | 2016 Hedging Position One | Oil | |
Derivatives, Fair Value [Line Items] | |
Swap Price ($) | $ / bbl | 49.75 |
Daily Volume (Bbls/d) | 1,000 |
Fixed Price Swaps | 2016 Hedging Position One | Natural Gas | |
Derivatives, Fair Value [Line Items] | |
Daily Volume (MMBtus/d) | 10,000 |
Swap Price ($) | $ / MMBTU | 4.110 |
Fixed Price Swaps | 2016 Hedging Position Two | Oil | |
Derivatives, Fair Value [Line Items] | |
Swap Price ($) | $ / bbl | 52.78 |
Daily Volume (Bbls/d) | 1,000 |
Fixed Price Swaps | 2016 Hedging Position Two | Natural Gas | |
Derivatives, Fair Value [Line Items] | |
Daily Volume (MMBtus/d) | 10,000 |
Swap Price ($) | $ / MMBTU | 4.120 |
Fixed Price Swaps | 2016 Hedging Position Three | Oil | |
Derivatives, Fair Value [Line Items] | |
Swap Price ($) | $ / bbl | 90 |
Daily Volume (Bbls/d) | 1,000 |
Fixed Price Swaps | 2016 Hedging Position Three | Natural Gas | |
Derivatives, Fair Value [Line Items] | |
Daily Volume (MMBtus/d) | |
Swap Price ($) | $ / MMBTU | |
Costless Collar | 2016 Hedging Position Four | Oil | |
Derivatives, Fair Value [Line Items] | |
Daily Volume (MMBtus/d) | 1,000 |
Floor Price ($) | $ / MMBTU | 45 |
Ceiling Price ($) | $ / MMBTU | 54.75 |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities - Additional Information (Detail) $ in Thousands | May. 04, 2016counterparty | Mar. 31, 2016USD ($) | Apr. 13, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Current portion of long-term debt | $ 459,201 | $ 0 | ||||
Long-term debt | $ 1,522,300 | 1,061,000 | ||||
Maximum correlation between price of oil & natural gas in market and underlying price basis indicative in the derivative contract | 100.00% | |||||
Accumulated other comprehensive income (loss) | $ 18,741 | 17,952 | $ 70,800 | $ 83,300 | ||
Accumulated other comprehensive income, to be reclassified into earnings in the next twelve months | 18,700 | |||||
Cash Flow Hedges | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Accumulated other comprehensive income (loss) | 18,700 | 24,000 | $ 77,900 | $ 86,800 | ||
Revolving credit facility | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Current portion of long-term debt | 175,300 | |||||
Long-term debt | 457,000 | 0 | ||||
1 3⁄4% Senior Convertible Notes due 2017 | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Current portion of long-term debt | 283,500 | |||||
Long-term debt | $ 283,500 | $ 279,300 | ||||
Subsequent Event | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Percentage of counterparty contract volume | 86.00% | |||||
Subsequent Event | Fixed-Price Swaps And Costless Collars | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Number of counterparties | counterparty | 2 | |||||
Subsequent Event | Revolving credit facility | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Current portion of long-term debt | $ 175,300 |
Derivative Instruments and He35
Derivative Instruments and Hedging Activities - Location and Fair Value Amounts of Derivative Instruments Reported in Balance Sheet (Detail) - Designated as Hedging Instrument - Commodity contracts - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Asset Derivatives | ||
Fair Value of Derivative Instruments, Assets | $ 30.2 | $ 38.6 |
Liability Derivatives | ||
Fair Value of Derivative Instruments, Liabilities | 0 | 0 |
Current assets: Fair value of derivative contracts | ||
Asset Derivatives | ||
Fair Value of Derivative Instruments, Assets | 30.2 | 38.6 |
Long-term assets: Fair value of derivative contracts | ||
Asset Derivatives | ||
Fair Value of Derivative Instruments, Assets | 0 | 0 |
Current liabilities: Fair value of derivative contracts | ||
Liability Derivatives | ||
Fair Value of Derivative Instruments, Liabilities | 0 | 0 |
Long-term liabilities: Fair value of derivative contracts | ||
Liability Derivatives | ||
Fair Value of Derivative Instruments, Liabilities | $ 0 | $ 0 |
Derivative Instruments and He36
Derivative Instruments and Hedging Activities - Before Tax Effect of Derivative Instruments in Statement of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | $ 4.6 | $ 22.9 |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a) | 12.8 | 36.8 |
Decrease/increase in oil revenue owing to effective hedging contracts | 9.3 | 34 |
Decrease/increase in gas revenue owing to effective hedging contracts | 3.5 | 2.8 |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | 4.6 | 22.9 |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a) | 12.8 | 36.8 |
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | 0.1 | 0.9 |
Designated as Hedging Instrument | Cash Flow Hedging | Derivative Income (Expense), Net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | 0.1 | 0.9 |
Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | 4.6 | 22.9 |
Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | 4.6 | 22.9 |
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a) | $ 12.8 | $ 36.8 |
Derivative Instruments and He37
Derivative Instruments and Hedging Activities - Gains or Losses Related to Changes in Fair Value and Cash Settlements on Derivatives Not Qualifying as Hedging Instruments (Detail) - Not Designated as Hedging Instrument - Commodity contracts - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash settlements | $ 0 | $ 3.1 |
Change in fair value | 0 | (0.9) |
Total gain on non-qualifying hedges | $ 0 | $ 2.2 |
Debt (Detail)
Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,522,300 | $ 1,061,000 |
Long-term Debt, Current Maturities | (459,201) | 0 |
Long-term debt | 1,063,090 | 1,060,955 |
1 3⁄4% Senior Convertible Notes due 2017 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 283,500 | 279,300 |
Long-term Debt, Current Maturities | (283,500) | |
7 1⁄2% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 770,200 | 770,000 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 457,000 | 0 |
Long-term Debt, Current Maturities | (175,300) | |
4.20% Building Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | 11,600 | $ 11,700 |
Long-term Debt, Current Maturities | $ (400) |
Debt (non-printing) (Detail)
Debt (non-printing) (Detail) $ in Millions | Mar. 06, 2012 | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||
Interest expense related to contractual interest coupon of convertible notes | $ 1.3 | $ 1.3 | ||
Convertible Debt | 1.75% Senior Notes due 2017 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.75% | 1.75% | ||
Senior Notes | 7 1⁄2% Senior Notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.50% | 7.50% | ||
4.20% Building Loan | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.20% | |||
1 3⁄4% Senior Convertible Notes due 2017 | ||||
Debt Instrument [Line Items] | ||||
Initial conversion rate of common stock | 0.0234449 | 1 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Mar. 01, 2017USD ($) | Mar. 06, 2012USD ($)$ / sharesshares | Mar. 31, 2016USD ($)$ / shares | Mar. 31, 2015USD ($) | Jun. 30, 2016 | Apr. 13, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 24, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||
Current portion of long-term debt | $ 459,201,000 | $ 0 | ||||||
Fair value of amount outstanding | $ 457,000,000 | |||||||
Long-term Debt, Weighted Average Interest Rate | 3.50% | |||||||
Long-term debt | $ 1,522,300,000 | 1,061,000,000 | ||||||
Interest expense related to contractual interest coupon of convertible notes | $ 1,300,000 | $ 1,300,000 | ||||||
Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of borrowing base utilization | 1.50% | |||||||
Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of borrowing base utilization | 2.50% | |||||||
Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of amount outstanding | $ 457,000,000 | |||||||
7 1⁄2% Senior Notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 770,200,000 | 770,000,000 | ||||||
1 3⁄4% Senior Convertible Notes due 2017 | ||||||||
Debt Instrument [Line Items] | ||||||||
Current portion of long-term debt | $ 283,500,000 | |||||||
Aggregate principal amount of senior subordinated notes | $ 300,000,000 | |||||||
Initial conversion rate of convertible note 2017 | An initial conversion rate of 23.4449 shares of our common stock per $1,000 principal amount of 2017 Convertible Notes, | |||||||
Initial conversion rate of common stock | 0.0234449 | 1 | ||||||
Initial conversion price of convertible note 2017 (in usd per share) | $ / shares | $ 42.65 | |||||||
Closing share price (in usd per share) | $ / shares | $ 0.79 | |||||||
Payment for call option | $ 70,800,000 | |||||||
Anti-dilution adjustments for purchases of call option (in shares) | shares | 7,033,470 | |||||||
Strike price per share (in usd per share) | $ / shares | $ 55.91 | |||||||
Proceeds from sale of warrants | $ 40,100,000 | |||||||
Long-term debt | $ 283,500,000 | 279,300,000 | ||||||
Interest expense related to amortization of discount | 3,900,000 | 3,600,000 | ||||||
Amortization of deferred financing costs | 400,000 | $ 300,000 | ||||||
Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Current portion of long-term debt | $ 175,300,000 | |||||||
Credit facility initial date | Jun. 24, 2014 | |||||||
Redetermined base borrowing and credit facility | $ 900,000,000 | |||||||
Maturity of new credit facility if note issue under 2004 indenture are retired on or before April 15, 2014 | Jul. 1, 2019 | |||||||
Borrowing base | $ 500,000,000 | |||||||
Outstanding borrowing under bank credit facility | 19,200,000 | |||||||
Initial bank and availability under facility | $ 23,800,000 | |||||||
Period in which outstanding amount has to be repaid to cure deficiency | 10 days | |||||||
Period in which bank has to add new properties to borrowing base and has to grant mortgage to banks | 30 days | |||||||
Oil and gas reserve as proportion of discounted present value of future net cash flow, for mortgage | 80.00% | |||||||
Long-term debt | $ 457,000,000 | 0 | ||||||
Revolving credit facility | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Current portion of long-term debt | 175,300,000 | |||||||
Borrowing base | 300,000,000 | |||||||
Outstanding borrowing under bank credit facility | $ 18,300,000 | |||||||
4.20% Building Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Current portion of long-term debt | 400,000 | |||||||
Long-term debt | $ 11,600,000 | $ 11,700,000 | ||||||
Covenant Compliance | ||||||||
Debt Instrument [Line Items] | ||||||||
Consolidated funded debt to consolidated EBITDA ratio | 3.75 | |||||||
Consolidated EBITDA To consolidated net interest expense | 2.5 | |||||||
Scenario, Forecast | 1 3⁄4% Senior Convertible Notes due 2017 | ||||||||
Debt Instrument [Line Items] | ||||||||
Cash share holders receive for each dollar In principle | $ 1,000 | |||||||
Scenario, Forecast | Covenant Compliance | ||||||||
Debt Instrument [Line Items] | ||||||||
Consolidated funded debt to consolidated EBITDA ratio | 3.75 |
Asset Retirement Obligations -
Asset Retirement Obligations - Changes in Asset Retirement Obligations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligations as of the beginning of the period, including current portion | $ 225,900 | |
Liabilities incurred | 2,100 | |
Liabilities settled | (4,700) | |
Accretion expense | 9,983 | $ 6,409 |
Asset retirement obligations as of the end of the period, including current portion | $ 233,300 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Valuation Allowance [Line Items] | ||
Effective income tax rate, percent | 1.00% | |
Federal statutory income tax rate, percent | 35.00% | |
Current income tax receivable | $ 46,174 | $ 46,174 |
Ceiling Test Write Downs From Decline in Commodity Prices | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | $ 245,500 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities (Other assets) | $ 8.5 | $ 8.5 |
Assets, fair value, total | 38.7 | 47.1 |
Derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contracts | 30.2 | 38.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities (Other assets) | 8.5 | 8.5 |
Assets, fair value, total | 8.5 | 8.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contracts | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities (Other assets) | 0 | 0 |
Assets, fair value, total | 28.8 | 36.6 |
Significant Other Observable Inputs (Level 2) | Derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contracts | 28.8 | 36.6 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities (Other assets) | 0 | 0 |
Assets, fair value, total | 1.4 | 2 |
Significant Unobservable Inputs (Level 3) | Derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contracts | $ 1.4 | $ 2 |
Fair Value Measurements - Hedgi
Fair Value Measurements - Hedging Contracts (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Hedging Contracts, net | |
Balance as of January 1, 2016 | $ 2 |
Total gains/(losses) (realized or unrealized): | |
Included in earnings | 1 |
Included in other comprehensive income | (0.5) |
Purchases, sales, issuances and settlements | (1.1) |
Transfers in and out of Level 3 | 0 |
Balance as of March 31, 2016 | 1.4 |
The amount of total gains/(losses) for the period included in earnings (derivative income) attributable to the change in unrealized gain/(losses) relating to derivatives still held at March 31, 2016 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
1 3⁄4% Senior Convertible Notes due 2017 | ||
Debt Instrument [Line Items] | ||
Fair value disclosures | $ 225.3 | $ 217.1 |
7 1⁄2% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Fair value of notes | $ 209.3 | $ 271.3 |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, net of tax | $ 17,952 | $ 83,300 |
Other comprehensive income (loss) before reclassifications: | ||
Change in fair value of derivatives | 4,600 | 22,900 |
Foreign currency translations | (3,600) | |
Income tax effect | (1,600) | (8,200) |
Net of tax | 3,000 | 11,100 |
Amounts reclassified from accumulated other comprehensive income: | ||
Operating revenue: oil/natural gas production | 12,800 | 36,800 |
Other operational expenses | (6,000) | |
Income tax effect | (4,500) | (13,200) |
Net of tax | 2,300 | 23,600 |
Other comprehensive income (loss), net of tax | 700 | (12,500) |
Ending balance, net of tax | 18,741 | 70,800 |
Cash Flow Hedges | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, net of tax | 24,000 | 86,800 |
Other comprehensive income (loss) before reclassifications: | ||
Change in fair value of derivatives | 4,600 | 22,900 |
Foreign currency translations | 0 | |
Income tax effect | (1,600) | (8,200) |
Net of tax | 3,000 | 14,700 |
Amounts reclassified from accumulated other comprehensive income: | ||
Income tax effect | (4,500) | (13,200) |
Net of tax | 8,300 | 23,600 |
Other comprehensive income (loss), net of tax | (5,300) | (8,900) |
Ending balance, net of tax | 18,700 | 77,900 |
Foreign Currency Items | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, net of tax | (6,000) | (3,500) |
Other comprehensive income (loss) before reclassifications: | ||
Change in fair value of derivatives | 0 | 0 |
Foreign currency translations | (3,600) | |
Income tax effect | 0 | 0 |
Net of tax | 0 | (3,600) |
Amounts reclassified from accumulated other comprehensive income: | ||
Operating revenue: oil/natural gas production | 0 | 0 |
Other operational expenses | (6,000) | |
Income tax effect | 0 | 0 |
Net of tax | (6,000) | 0 |
Other comprehensive income (loss), net of tax | 6,000 | (3,600) |
Ending balance, net of tax | $ 0 | $ (7,100) |
Investment in Oil and Gas Pro47
Investment in Oil and Gas Properties - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)$ / Mcf$ / bbl | Mar. 31, 2015USD ($) | Dec. 31, 2015$ / Mcf$ / bbl | |
Oil and Gas In Process Activities [Line Items] | |||
Write-down of oil and gas properties | $ 129,204 | $ 491,412 | |
Decrease in written down value of oil and gas properties | 23,000 | ||
Oil And Gas | |||
Oil and Gas In Process Activities [Line Items] | |||
Write-down of oil and gas properties | $ 128,900 | ||
Oil | |||
Oil and Gas In Process Activities [Line Items] | |||
Average 12-month oil prices net of differentials | $ / bbl | 46.72 | 51.16 | |
Natural Gas | |||
Oil and Gas In Process Activities [Line Items] | |||
Average twelve month gas prices net of differentials | $ / Mcf | 2.01 | 2.19 | |
Natural Gas Liquids (MBbls) | |||
Oil and Gas In Process Activities [Line Items] | |||
Average 12-month gas prices net of differentials | $ / bbl | 13.65 | 16.40 | |
CANADA | |||
Oil and Gas In Process Activities [Line Items] | |||
Write-down of oil and gas properties | $ 300 |
Other Operational Expenses (Det
Other Operational Expenses (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Other operational expenses | $ 6 |
Oil and gas, subsidy charges | 6.1 |
Foreign Currency Items | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Other operational expenses | $ 6 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Bureau of Ocean Energy Management - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 21, 2016 |
Loss Contingencies [Line Items] | ||
Bonding requirement, amount | $ 565 | |
Surety bond | $ 223 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event (Details) | Apr. 29, 2016$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Share Price (below) | $ 1 |
Guarantor Financial Statement51
Guarantor Financial Statements - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 367,134 | $ 10,759 | $ 162,128 | $ 74,488 |
Accounts receivable | 42,185 | 48,031 | ||
Fair value of derivative contracts | 30,222 | 38,576 | ||
Current income tax receivable | 46,174 | 46,174 | ||
Inventory | 535 | 535 | ||
Other current assets | 6,531 | 6,346 | ||
Total current assets | 492,781 | 150,421 | ||
Oil and gas properties, full cost method: | ||||
Proved | 9,481,859 | 9,375,898 | ||
Less: accumulated DD&A | (8,796,412) | (8,603,955) | ||
Net proved oil and gas properties | 685,447 | 771,943 | ||
Unevaluated | 421,429 | 440,043 | ||
Other property and equipment, net | 28,667 | 29,289 | ||
Other assets, net | 18,257 | 18,473 | ||
Investment in subsidiary | 0 | |||
Total assets | 1,646,581 | 1,410,169 | ||
Current liabilities: | ||||
Accounts payable to vendors | 38,200 | 82,207 | ||
Undistributed oil and gas proceeds | 3,875 | 5,992 | ||
Accrued interest | 22,901 | 9,022 | ||
Asset retirement obligations | 23,465 | 21,291 | ||
Current portion of long-term debt | 459,201 | 0 | ||
Other current liabilities | 32,671 | 40,712 | ||
Total current liabilities | 580,313 | 159,224 | ||
Long-term debt | 1,063,090 | 1,060,955 | ||
Asset retirement obligations | 209,848 | 204,575 | ||
Other long-term liabilities | 18,329 | 25,204 | ||
Total liabilities | $ 1,871,580 | $ 1,449,958 | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Common stock | $ 558 | $ 553 | ||
Treasury stock | (860) | (860) | ||
Additional paid-in capital | 1,650,969 | 1,648,189 | ||
Accumulated deficit | (1,894,407) | (1,705,623) | ||
Accumulated other comprehensive income (loss) | 18,741 | 17,952 | 70,800 | 83,300 |
Total stockholders’ equity | (224,999) | (39,789) | ||
Total liabilities and stockholders’ equity | 1,646,581 | 1,410,169 | ||
Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 367,133 | 9,681 | 131,936 | 72,886 |
Accounts receivable | 57,106 | 10,597 | ||
Fair value of derivative contracts | 0 | |||
Current income tax receivable | 46,174 | 46,174 | ||
Inventory | 535 | 535 | ||
Other current assets | 6,531 | 6,313 | ||
Total current assets | 477,479 | 73,300 | ||
Oil and gas properties, full cost method: | ||||
Proved | 1,891,423 | 1,875,152 | ||
Less: accumulated DD&A | (1,891,423) | (1,874,622) | ||
Net proved oil and gas properties | 0 | 530 | ||
Unevaluated | 261,724 | 253,308 | ||
Other property and equipment, net | 28,667 | 29,289 | ||
Other assets, net | 17,460 | 16,612 | ||
Investment in subsidiary | 614,540 | 745,033 | ||
Total assets | 1,399,870 | 1,118,072 | ||
Current liabilities: | ||||
Accounts payable to vendors | 24,915 | 16,063 | ||
Undistributed oil and gas proceeds | 2,800 | 5,216 | ||
Accrued interest | 22,901 | 9,022 | ||
Asset retirement obligations | 0 | |||
Current portion of long-term debt | 459,201 | |||
Other current liabilities | 32,335 | 40,161 | ||
Total current liabilities | 542,152 | 70,462 | ||
Long-term debt | 1,063,090 | 1,060,955 | ||
Asset retirement obligations | 1,298 | 1,240 | ||
Other long-term liabilities | 18,329 | 25,204 | ||
Total liabilities | $ 1,624,869 | $ 1,157,861 | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Common stock | $ 558 | $ 553 | ||
Treasury stock | (860) | (860) | ||
Additional paid-in capital | 1,650,969 | 1,648,189 | ||
Accumulated deficit | (1,894,407) | (1,705,623) | ||
Accumulated other comprehensive income (loss) | 18,741 | 17,952 | ||
Total stockholders’ equity | (224,999) | (39,789) | ||
Total liabilities and stockholders’ equity | 1,399,870 | 1,118,072 | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 1 | 2 | 30,015 | 1,450 |
Accounts receivable | 38,476 | 39,190 | ||
Fair value of derivative contracts | 30,222 | 38,576 | ||
Current income tax receivable | 0 | |||
Inventory | 0 | 0 | ||
Other current assets | 0 | |||
Total current assets | 68,699 | 77,768 | ||
Oil and gas properties, full cost method: | ||||
Proved | 7,544,791 | 7,458,262 | ||
Less: accumulated DD&A | (6,859,344) | (6,686,849) | ||
Net proved oil and gas properties | 685,447 | 771,413 | ||
Unevaluated | 159,705 | 186,735 | ||
Other property and equipment, net | 0 | |||
Other assets, net | 797 | 826 | ||
Investment in subsidiary | 0 | |||
Total assets | 914,648 | 1,036,742 | ||
Current liabilities: | ||||
Accounts payable to vendors | 67,567 | 67,901 | ||
Undistributed oil and gas proceeds | 1,075 | 776 | ||
Accrued interest | 0 | |||
Asset retirement obligations | 23,465 | 20,400 | ||
Current portion of long-term debt | 0 | |||
Other current liabilities | 336 | 551 | ||
Total current liabilities | 92,443 | 89,628 | ||
Long-term debt | 0 | |||
Asset retirement obligations | 208,550 | 203,335 | ||
Other long-term liabilities | 0 | |||
Total liabilities | $ 300,993 | $ 292,963 | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Common stock | $ 0 | |||
Treasury stock | 0 | |||
Additional paid-in capital | 1,344,577 | $ 1,344,577 | ||
Accumulated deficit | (749,663) | (624,824) | ||
Accumulated other comprehensive income (loss) | 18,741 | 24,026 | ||
Total stockholders’ equity | 613,655 | 743,779 | ||
Total liabilities and stockholders’ equity | 914,648 | 1,036,742 | ||
Non- Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 1,076 | 177 | 152 |
Accounts receivable | 885 | 0 | ||
Fair value of derivative contracts | 0 | |||
Current income tax receivable | 0 | |||
Inventory | 0 | |||
Other current assets | 0 | 33 | ||
Total current assets | 885 | 1,109 | ||
Oil and gas properties, full cost method: | ||||
Proved | 45,645 | 42,484 | ||
Less: accumulated DD&A | (45,645) | (42,484) | ||
Net proved oil and gas properties | 0 | |||
Unevaluated | 0 | 0 | ||
Other property and equipment, net | 0 | |||
Other assets, net | 0 | 1,035 | ||
Investment in subsidiary | 0 | 1,088 | ||
Total assets | 885 | 3,232 | ||
Current liabilities: | ||||
Accounts payable to vendors | 0 | |||
Undistributed oil and gas proceeds | 0 | |||
Accrued interest | 0 | |||
Asset retirement obligations | 0 | 891 | ||
Current portion of long-term debt | 0 | |||
Other current liabilities | 0 | |||
Total current liabilities | 0 | 891 | ||
Long-term debt | 0 | |||
Asset retirement obligations | 0 | |||
Other long-term liabilities | 0 | |||
Total liabilities | $ 0 | $ 891 | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Common stock | $ 0 | |||
Treasury stock | 0 | |||
Additional paid-in capital | 109,077 | $ 109,795 | ||
Accumulated deficit | (108,192) | (95,306) | ||
Accumulated other comprehensive income (loss) | 0 | (12,148) | ||
Total stockholders’ equity | 885 | 2,341 | ||
Total liabilities and stockholders’ equity | 885 | 3,232 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable | (54,282) | (1,756) | ||
Fair value of derivative contracts | 0 | |||
Current income tax receivable | 0 | |||
Inventory | 0 | |||
Other current assets | 0 | |||
Total current assets | (54,282) | (1,756) | ||
Oil and gas properties, full cost method: | ||||
Proved | 0 | |||
Less: accumulated DD&A | 0 | |||
Net proved oil and gas properties | 0 | |||
Unevaluated | 0 | |||
Other property and equipment, net | 0 | |||
Other assets, net | 0 | |||
Investment in subsidiary | (614,540) | (746,121) | ||
Total assets | (668,822) | (747,877) | ||
Current liabilities: | ||||
Accounts payable to vendors | (54,282) | (1,757) | ||
Undistributed oil and gas proceeds | 0 | |||
Accrued interest | 0 | |||
Asset retirement obligations | 0 | |||
Current portion of long-term debt | 0 | |||
Other current liabilities | 0 | |||
Total current liabilities | (54,282) | (1,757) | ||
Long-term debt | 0 | |||
Asset retirement obligations | 0 | |||
Other long-term liabilities | 0 | |||
Total liabilities | $ (54,282) | $ (1,757) | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Common stock | $ 0 | |||
Treasury stock | 0 | |||
Additional paid-in capital | (1,453,654) | $ (1,454,372) | ||
Accumulated deficit | 857,855 | 720,130 | ||
Accumulated other comprehensive income (loss) | (18,741) | (11,878) | ||
Total stockholders’ equity | (614,540) | (746,120) | ||
Total liabilities and stockholders’ equity | $ (668,822) | $ (747,877) |
Guarantor Financial Statement52
Guarantor Financial Statements - Condensed Consolidating Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating revenue: | ||
Oil production | $ 60,275 | $ 107,507 |
Natural gas production | 15,173 | 28,337 |
Natural gas liquids production | 4,735 | 12,366 |
Other operational income | 356 | 2,160 |
Derivative income, net | 138 | 3,128 |
Total operating revenue | 80,677 | 153,498 |
Operating expenses: | ||
Lease operating expenses | 19,547 | 27,577 |
Transportation, processing and gathering expenses | 841 | 17,703 |
Production taxes | 481 | 2,515 |
Depreciation, depletion and amortization | 61,558 | 86,422 |
Write-down of oil and gas properties | 129,204 | 491,412 |
Accretion expense | 9,983 | 6,409 |
Salaries, general and administrative expenses | 13,707 | 17,007 |
Incentive compensation expense | 4,979 | 1,563 |
Other operational expenses | 12,527 | 84 |
Total operating expenses | 252,827 | 650,692 |
Loss from operations | (172,150) | (497,194) |
Other (income) expenses: | ||
Interest expense | 15,241 | 10,365 |
Interest income | (114) | (122) |
Other income | (298) | (143) |
Other expense | 2 | 0 |
Total other expenses | 14,831 | 10,100 |
Loss before income taxes | (186,981) | (507,294) |
Provision (benefit) for income taxes: | ||
Current | (1,074) | 0 |
Deferred | 2,877 | (179,906) |
Total income taxes | 1,803 | (179,906) |
Net loss | (188,784) | (327,388) |
Comprehensive income (loss) | (187,995) | (339,891) |
Parent | ||
Operating revenue: | ||
Oil production | 61 | 4,350 |
Natural gas production | 2,467 | 16,617 |
Natural gas liquids production | 1,134 | 9,879 |
Other operational income | 356 | 2,160 |
Derivative income, net | 0 | 0 |
Total operating revenue | 4,018 | 33,006 |
Operating expenses: | ||
Lease operating expenses | 2,728 | 4,976 |
Transportation, processing and gathering expenses | 1,546 | 16,108 |
Production taxes | 259 | 2,198 |
Depreciation, depletion and amortization | 8,594 | 42,112 |
Write-down of oil and gas properties | 9,324 | 491,412 |
Accretion expense | 58 | 91 |
Salaries, general and administrative expenses | 13,907 | 17,001 |
Incentive compensation expense | 4,979 | 1,563 |
Other operational expenses | 6,109 | 84 |
Total operating expenses | 47,504 | 575,545 |
Loss from operations | (43,486) | (542,539) |
Other (income) expenses: | ||
Interest expense | 15,241 | 10,344 |
Interest income | (114) | (101) |
Other income | (39) | (133) |
Other expense | 2 | |
Income from investment in subsidiaries | 131,282 | (29,027) |
Total other expenses | 146,372 | (18,917) |
Loss before income taxes | (189,858) | (523,622) |
Provision (benefit) for income taxes: | ||
Current | (1,074) | |
Deferred | 0 | (196,234) |
Total income taxes | (1,074) | (196,234) |
Net loss | (188,784) | (327,388) |
Comprehensive income (loss) | (187,995) | (339,891) |
Guarantor Subsidiaries | ||
Operating revenue: | ||
Oil production | 60,214 | 103,157 |
Natural gas production | 12,706 | 11,720 |
Natural gas liquids production | 3,601 | 2,487 |
Other operational income | 0 | 0 |
Derivative income, net | 138 | 3,128 |
Total operating revenue | 76,659 | 120,492 |
Operating expenses: | ||
Lease operating expenses | 16,806 | 22,601 |
Transportation, processing and gathering expenses | (705) | 1,595 |
Production taxes | 222 | 317 |
Depreciation, depletion and amortization | 52,964 | 44,310 |
Write-down of oil and gas properties | 119,531 | 0 |
Accretion expense | 9,925 | 6,318 |
Salaries, general and administrative expenses | (200) | 1 |
Other operational expenses | 337 | 0 |
Total operating expenses | 198,880 | 75,142 |
Loss from operations | (122,221) | 45,350 |
Other (income) expenses: | ||
Interest expense | 0 | 21 |
Interest income | 0 | (16) |
Other income | (259) | (10) |
Other expense | 0 | |
Total other expenses | (259) | (5) |
Loss before income taxes | (121,962) | 45,355 |
Provision (benefit) for income taxes: | ||
Current | 0 | |
Deferred | 2,877 | 16,328 |
Total income taxes | 2,877 | 16,328 |
Net loss | (124,839) | 29,027 |
Comprehensive income (loss) | (124,839) | 29,027 |
Non- Guarantor Subsidiaries | ||
Operating expenses: | ||
Lease operating expenses | 13 | |
Depreciation, depletion and amortization | 0 | 0 |
Write-down of oil and gas properties | 349 | 0 |
Accretion expense | 0 | |
Salaries, general and administrative expenses | 0 | 5 |
Other operational expenses | 6,081 | |
Total operating expenses | 6,443 | 5 |
Loss from operations | (6,443) | (5) |
Other (income) expenses: | ||
Interest income | 0 | (5) |
Other income | 0 | |
Other expense | 0 | |
Income from investment in subsidiaries | 6,443 | 0 |
Total other expenses | 6,443 | (5) |
Loss before income taxes | (12,886) | 0 |
Provision (benefit) for income taxes: | ||
Current | 0 | |
Deferred | 0 | 0 |
Total income taxes | 0 | |
Net loss | (12,886) | 0 |
Comprehensive income (loss) | (12,886) | 0 |
Eliminations | ||
Operating expenses: | ||
Depreciation, depletion and amortization | 0 | 0 |
Write-down of oil and gas properties | 0 | |
Accretion expense | 0 | |
Other (income) expenses: | ||
Income from investment in subsidiaries | (137,725) | 29,027 |
Total other expenses | (137,725) | 29,027 |
Loss before income taxes | 137,725 | (29,027) |
Provision (benefit) for income taxes: | ||
Current | 0 | |
Deferred | 0 | 0 |
Total income taxes | 0 | |
Net loss | 137,725 | (29,027) |
Comprehensive income (loss) | $ 137,725 | $ (29,027) |
Guarantor Financial Statement53
Guarantor Financial Statements - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (188,784) | $ (327,388) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 61,558 | 86,422 |
Write-down of oil and gas properties | 129,204 | 491,412 |
Accretion expense | 9,983 | 6,409 |
Deferred income tax provision (benefit) | 2,877 | (179,906) |
Settlement of asset retirement obligations | (4,667) | (17,145) |
Non-cash stock compensation expense | 2,312 | 2,640 |
Non-cash derivative expense | 192 | 1,511 |
Non-cash interest expense | 4,635 | 4,318 |
Other non-cash expense | 6,081 | 0 |
Change in current income taxes | (1,074) | 7,188 |
Non-cash loss from investment in subsidiaries | 0 | |
Change in intercompany receivables/payables | 0 | |
(Increase) decrease in accounts receivable | 5,845 | 8,206 |
(Increase) decrease in other current assets | (185) | 1,883 |
(Increase) decrease in inventory | 0 | |
Decrease in accounts payable | (2,138) | (8,657) |
Increase in other current liabilities | 3,898 | 6,889 |
Other | (298) | (260) |
Net cash provided by operating activities | 29,439 | 83,522 |
Cash flows from investing activities: | ||
Investment in oil and gas properties | (129,859) | (169,895) |
Investment in fixed and other assets | (496) | (662) |
Change in restricted funds | 1,045 | 177,642 |
Investment in subsidiaries | 0 | |
Net cash (used in) provided by investing activities | (129,310) | 7,085 |
Cash flows from financing activities: | ||
Proceeds from bank borrowings | 477,000 | 5,000 |
Repayments of bank borrowings | (20,000) | (5,000) |
Repayments of building loan | (95) | 0 |
Equity proceeds from parent | 0 | |
Net payments for share-based compensation | (650) | (2,991) |
Net cash provided by (used in) financing activities | 456,255 | (2,991) |
Effect of exchange rate changes on cash | (9) | 24 |
Net change in cash and cash equivalents | 356,375 | 87,640 |
Cash and cash equivalents, beginning of period | 10,759 | 74,488 |
Cash and cash equivalents, end of period | 367,134 | 162,128 |
Parent | ||
Cash flows from operating activities: | ||
Net loss | (188,784) | (327,388) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 8,594 | 42,112 |
Write-down of oil and gas properties | 9,324 | 491,412 |
Accretion expense | 58 | 91 |
Deferred income tax provision (benefit) | 0 | (196,234) |
Settlement of asset retirement obligations | 0 | (1) |
Non-cash stock compensation expense | 2,312 | 2,640 |
Non-cash derivative expense | 0 | |
Non-cash interest expense | 4,635 | 4,318 |
Change in current income taxes | (1,074) | 7,188 |
Non-cash loss from investment in subsidiaries | 131,282 | (29,027) |
Change in intercompany receivables/payables | (1,657) | (33,748) |
(Increase) decrease in accounts receivable | (36,703) | 3,606 |
(Increase) decrease in other current assets | (218) | 1,881 |
(Increase) decrease in inventory | (2,415) | |
Decrease in accounts payable | 45 | (1,007) |
Increase in other current liabilities | 3,813 | 6,347 |
Other | (39) | (249) |
Net cash provided by operating activities | (68,412) | (30,474) |
Cash flows from investing activities: | ||
Investment in oil and gas properties | (29,895) | (84,470) |
Investment in fixed and other assets | (496) | (662) |
Change in restricted funds | 0 | 177,647 |
Investment in subsidiaries | 0 | |
Net cash (used in) provided by investing activities | (30,391) | 92,515 |
Cash flows from financing activities: | ||
Proceeds from bank borrowings | 477,000 | 5,000 |
Repayments of bank borrowings | (20,000) | (5,000) |
Repayments of building loan | (95) | |
Equity proceeds from parent | 0 | |
Net payments for share-based compensation | (650) | (2,991) |
Net cash provided by (used in) financing activities | 456,255 | (2,991) |
Effect of exchange rate changes on cash | 0 | |
Net change in cash and cash equivalents | 357,452 | 59,050 |
Cash and cash equivalents, beginning of period | 9,681 | 72,886 |
Cash and cash equivalents, end of period | 367,133 | 131,936 |
Guarantor Subsidiaries | ||
Cash flows from operating activities: | ||
Net loss | (124,839) | 29,027 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 52,964 | 44,310 |
Write-down of oil and gas properties | 119,531 | 0 |
Accretion expense | 9,925 | 6,318 |
Deferred income tax provision (benefit) | 2,877 | 16,328 |
Settlement of asset retirement obligations | (3,768) | (17,144) |
Non-cash stock compensation expense | 0 | |
Non-cash derivative expense | 192 | 1,511 |
Non-cash interest expense | 0 | |
Change in current income taxes | 0 | |
Non-cash loss from investment in subsidiaries | 0 | |
Change in intercompany receivables/payables | 1,657 | 25,548 |
(Increase) decrease in accounts receivable | 43,432 | 4,600 |
(Increase) decrease in other current assets | 0 | |
(Increase) decrease in inventory | 2,415 | |
Decrease in accounts payable | (2,183) | (7,650) |
Increase in other current liabilities | 85 | 542 |
Other | (259) | (11) |
Net cash provided by operating activities | 99,614 | 105,794 |
Cash flows from investing activities: | ||
Investment in oil and gas properties | (99,615) | (77,229) |
Investment in fixed and other assets | 0 | |
Change in restricted funds | 0 | |
Investment in subsidiaries | 0 | |
Net cash (used in) provided by investing activities | (99,615) | (77,229) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings | 0 | |
Repayments of bank borrowings | 0 | |
Equity proceeds from parent | 0 | |
Net payments for share-based compensation | 0 | |
Net cash provided by (used in) financing activities | 0 | |
Effect of exchange rate changes on cash | 0 | |
Net change in cash and cash equivalents | (1) | 28,565 |
Cash and cash equivalents, beginning of period | 2 | 1,450 |
Cash and cash equivalents, end of period | 1 | 30,015 |
Non- Guarantor Subsidiaries | ||
Cash flows from operating activities: | ||
Net loss | (12,886) | 0 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 0 | 0 |
Write-down of oil and gas properties | 349 | 0 |
Accretion expense | 0 | |
Deferred income tax provision (benefit) | 0 | 0 |
Settlement of asset retirement obligations | (899) | 0 |
Non-cash stock compensation expense | 0 | |
Non-cash derivative expense | 0 | |
Non-cash interest expense | 0 | |
Other non-cash expense | 6,081 | |
Change in current income taxes | 0 | |
Non-cash loss from investment in subsidiaries | 6,443 | 0 |
Change in intercompany receivables/payables | 0 | 8,200 |
(Increase) decrease in accounts receivable | (884) | 0 |
(Increase) decrease in other current assets | 33 | 2 |
(Increase) decrease in inventory | 0 | |
Decrease in accounts payable | 0 | |
Increase in other current liabilities | 0 | |
Other | 0 | |
Net cash provided by operating activities | (1,763) | 8,202 |
Cash flows from investing activities: | ||
Investment in oil and gas properties | (349) | (8,196) |
Investment in fixed and other assets | 0 | |
Change in restricted funds | 1,045 | (5) |
Investment in subsidiaries | 718 | (8,168) |
Net cash (used in) provided by investing activities | 1,414 | (16,369) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings | 0 | |
Repayments of bank borrowings | 0 | |
Equity proceeds from parent | (718) | 8,168 |
Net payments for share-based compensation | 0 | |
Net cash provided by (used in) financing activities | (718) | 8,168 |
Effect of exchange rate changes on cash | (9) | 24 |
Net change in cash and cash equivalents | (1,076) | 25 |
Cash and cash equivalents, beginning of period | 1,076 | 152 |
Cash and cash equivalents, end of period | 0 | 177 |
Eliminations | ||
Cash flows from operating activities: | ||
Net loss | 137,725 | (29,027) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 0 | 0 |
Write-down of oil and gas properties | 0 | |
Accretion expense | 0 | |
Deferred income tax provision (benefit) | 0 | 0 |
Settlement of asset retirement obligations | 0 | |
Non-cash stock compensation expense | 0 | |
Non-cash derivative expense | 0 | |
Non-cash interest expense | 0 | |
Change in current income taxes | 0 | |
Non-cash loss from investment in subsidiaries | (137,725) | 29,027 |
Change in intercompany receivables/payables | 0 | |
(Increase) decrease in accounts receivable | 0 | |
(Increase) decrease in other current assets | 0 | |
(Increase) decrease in inventory | 0 | |
Decrease in accounts payable | 0 | |
Increase in other current liabilities | 0 | |
Other | 0 | |
Net cash provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Investment in oil and gas properties | 0 | |
Investment in fixed and other assets | 0 | |
Change in restricted funds | 0 | |
Investment in subsidiaries | (718) | 8,168 |
Net cash (used in) provided by investing activities | (718) | 8,168 |
Cash flows from financing activities: | ||
Proceeds from bank borrowings | 0 | |
Repayments of bank borrowings | 0 | |
Equity proceeds from parent | 718 | (8,168) |
Net payments for share-based compensation | 0 | |
Net cash provided by (used in) financing activities | 718 | (8,168) |
Effect of exchange rate changes on cash | 0 | |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $ 0 | $ 0 |