Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 05, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
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 | 57,249,506 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Current assets: | |||||||
Cash and cash equivalents | $ 141,655 | $ 74,488 | $ 333,886 | $ 331,224 | |||
Restricted cash | 177,647 | ||||||
Accounts receivable | 68,706 | 120,359 | |||||
Fair value of derivative contracts | 74,319 | 139,179 | |||||
Current income tax receivable | 6 | 7,212 | |||||
Inventory | 3,709 | 3,709 | |||||
Other current assets | 10,076 | 8,118 | |||||
Total current assets | 298,471 | 530,712 | |||||
Oil and gas properties, full cost method of accounting: | |||||||
Proved | 9,074,425 | 8,817,268 | |||||
Less: accumulated depreciation, depletion and amortization | (7,846,343) | (6,970,631) | |||||
Net proved oil and gas properties | 1,228,082 | 1,846,637 | |||||
Unevaluated | 529,589 | 567,365 | |||||
Other property and equipment, net | 30,736 | 32,340 | |||||
Fair value of derivative contracts | 8,231 | 14,333 | |||||
Other assets, net | 28,082 | 27,224 | |||||
Total assets | 2,123,191 | 3,018,611 | |||||
Current liabilities: | |||||||
Accounts payable to vendors | 69,423 | 132,629 | |||||
Undistributed oil and gas proceeds | 17,000 | 23,232 | |||||
Accrued interest | 9,027 | 9,022 | |||||
Deferred taxes | [1] | 7,065 | 20,119 | ||||
Asset retirement obligations | 56,176 | 69,400 | |||||
Other current liabilities | 46,780 | 49,505 | |||||
Total current liabilities | 205,471 | 303,907 | |||||
Long-term debt | 1,048,406 | 1,041,035 | |||||
Deferred taxes | [1] | 11,752 | 286,343 | ||||
Asset retirement obligations | 240,613 | 247,009 | |||||
Other long-term liabilities | 32,213 | 38,714 | |||||
Total liabilities | $ 1,538,455 | $ 1,917,008 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Common stock, $.01 par value; authorized 150,000,000 shares; issued 55,283,825 and 54,884,542 shares, respectively | $ 553 | $ 549 | |||||
Treasury stock (16,582 shares, at cost) | (860) | (860) | |||||
Additional paid-in capital | 1,639,389 | 1,633,307 | |||||
Accumulated deficit | (1,095,002) | (614,708) | |||||
Accumulated other comprehensive income | 40,656 | $ 70,800 | 83,315 | $ (18,200) | $ (9,200) | $ (2,100) | |
Total stockholders' equity | 584,736 | 1,101,603 | |||||
Total liabilities and stockholders' equity | $ 2,123,191 | $ 3,018,611 | |||||
[1] | Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 55,283,825 | 54,884,542 |
Treasury stock, shares | 16,582 | 16,582 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating revenue: | ||||
Oil production | $ 111,585 | $ 142,393 | $ 219,092 | $ 280,682 |
Natural gas production | 26,907 | 46,667 | 55,244 | 103,029 |
Natural gas liquids production | 11,033 | 15,936 | 23,399 | 43,906 |
Other operational income | 2,050 | 1,792 | 3,047 | |
Derivative income, net | 2,427 | |||
Total operating revenue | 149,525 | 207,046 | 301,954 | 430,664 |
Operating expenses: | ||||
Lease operating expenses | 27,429 | 49,454 | 55,006 | 96,357 |
Transportation, processing and gathering expenses | 19,940 | 14,098 | 37,643 | 28,724 |
Production taxes | 1,827 | 3,257 | 4,342 | 6,319 |
Depreciation, depletion and amortization | 77,951 | 92,835 | 164,373 | 175,481 |
Write-down of oil and gas properties | 224,294 | 715,706 | ||
Accretion expense | 6,408 | 7,733 | 12,817 | 15,288 |
Salaries, general and administrative expenses | 16,418 | 16,637 | 33,425 | 32,966 |
Incentive compensation expense | 1,264 | 3,903 | 2,827 | 7,037 |
Other operational expenses | 1,454 | 1,170 | 212 | |
Derivative expense, net | 701 | 2,516 | 3,115 | |
Total operating expenses | 377,686 | 190,433 | 1,027,309 | 365,499 |
Income (loss) from operations | (228,161) | 16,613 | (725,355) | 65,165 |
Other (income) expenses: | ||||
Interest expense | 10,472 | 9,913 | 20,837 | 18,270 |
Interest income | (66) | (193) | (188) | (336) |
Other income | (613) | (722) | (756) | (1,429) |
Other expense | 179 | 179 | ||
Total other (income) expenses | 9,793 | 9,177 | 19,893 | 16,684 |
Income (loss) before income taxes | (237,954) | 7,436 | (745,248) | 48,481 |
Provision (benefit) for income taxes: | ||||
Deferred | (85,048) | 2,992 | (264,954) | 18,094 |
Total income taxes | (85,048) | 2,992 | (264,954) | 18,094 |
Net income (loss) | $ (152,906) | $ 4,444 | $ (480,294) | $ 30,387 |
Basic earnings (loss) per share | $ (2.77) | $ 0.08 | $ (8.70) | $ 0.59 |
Diluted earnings (loss) per share | $ (2.77) | $ 0.08 | $ (8.70) | $ 0.59 |
Average shares outstanding | 55,251 | 52,050 | 55,216 | 50,540 |
Average shares outstanding assuming dilution | 55,251 | 52,373 | 55,216 | 50,727 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (152,906) | $ 4,444 | $ (480,294) | $ 30,387 |
Other comprehensive income (loss), net of tax effect: | ||||
Derivatives | (31,480) | (9,765) | (40,338) | (16,355) |
Foreign currency translation | 1,324 | 755 | (2,321) | 256 |
Comprehensive income (loss) | $ (183,062) | $ (4,566) | $ (522,953) | $ 14,288 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (480,294) | $ 30,387 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 164,373 | 175,481 |
Write-down of oil and gas properties | 715,706 | |
Accretion expense | 12,817 | 15,288 |
Deferred income tax (benefit) provision | (264,954) | 18,094 |
Settlement of asset retirement obligations | (35,923) | (24,915) |
Non-cash stock compensation expense | 6,028 | 5,358 |
Non-cash derivative expense | 7,931 | 2,697 |
Non-cash interest expense | 8,737 | 8,229 |
Change in current income taxes | 7,206 | (6) |
(Increase) decrease in accounts receivable | 23,047 | (25,524) |
Increase in other current assets | (1,959) | (82) |
Increase (decrease) in accounts payable | (7,826) | 1,843 |
Increase (decrease) in other current liabilities | (8,720) | 50,785 |
Other | (504) | (675) |
Net cash (used in) provided by operating activities | 145,665 | 256,960 |
Cash flows from investing activities: | ||
Investment in oil and gas properties | (264,355) | (517,904) |
Proceeds from sale of oil and gas properties, net of expenses | 10,100 | 51,955 |
Investment in fixed and other assets | (727) | (3,896) |
Change in restricted funds | 179,475 | (356) |
Net cash used in investing activities | (75,507) | (470,201) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings | 5,000 | |
Repayment of bank borrowings | (5,000) | |
Net proceeds from issuance of common stock | 226,036 | |
Deferred financing costs | (3,167) | |
Net payments for share-based compensation | (3,069) | (6,948) |
Net cash provided by (used in) financing activities | (3,069) | 215,921 |
Effect of exchange rate changes on cash | 78 | (18) |
Net change in cash and cash equivalents | 67,167 | 2,662 |
Cash and cash equivalents, beginning of period | 74,488 | 331,224 |
Cash and cash equivalents, end of period | $ 141,655 | $ 333,886 |
Interim Financial Statements
Interim Financial Statements | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Note 1 – Interim Financial Statements The condensed consolidated financial statements of Stone Energy Corporation (“Stone”) and its subsidiaries as of June 30, 2015 and for the three and six month periods ended June 30, 2015 and 2014 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, 2014 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, 2014 (our “2014 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 2014 Annual Report on Form 10-K. The results of operations for the three and six month periods ended June 30, 2015 are not necessarily indicative of future financial results. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2 – 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands, except per share data) Income (numerator): Basic: Net income (loss) ($ 152,906 ) $ 4,444 ($ 480,294 ) $ 30,387 Net income attributable to participating securities — (111 ) — (698 ) Net income (loss) attributable to common stock - basic ($ 152,906 ) $ 4,333 ($ 480,294 ) $ 29,689 Diluted: Net income (loss) ($ 152,906 ) $ 4,444 ($ 480,294 ) $ 30,387 Net income attributable to participating securities — (111 ) — (697 ) Net income (loss) attributable to common stock - diluted ($ 152,906 ) $ 4,333 ($ 480,294 ) $ 29,690 Weighted average shares (denominator): Weighted average shares - basic 55,251 52,050 55,216 50,540 Dilutive effect of stock options — 58 — 54 Dilutive effect of convertible notes — 265 — 133 Weighted average shares - diluted 55,251 52,373 55,216 50,727 Basic earnings (loss) per share ($ 2.77 ) $ 0.08 ($ 8.70 ) $ 0.59 Diluted earnings (loss) per share ($ 2.77 ) $ 0.08 ($ 8.70 ) $ 0.59 All outstanding stock options were considered antidilutive during the three and six months ended June 30, 2015 (approximately 174,000 shares) because we had a net loss for such periods. Stock options that were considered antidilutive because the exercise price of the options exceeded the average price of our common stock totaled approximately 120,000 shares and 131,000 shares, respectively, during the three and six months ended June 30, 2014. During the three months ended June 30, 2015 and 2014, approximately 29,000 shares and 40,000 shares of our common stock, respectively, were issued from authorized shares upon the lapsing of forfeiture restrictions of restricted stock by employees and nonemployee directors. During the six months ended June 30, 2015 and 2014, approximately 399,000 shares and 372,000 shares of our common stock, respectively, were issued from authorized shares upon the lapsing of forfeiture restrictions of restricted stock by employees and nonemployee directors. In May 2014, 5,750,000 shares of our common stock were issued in a public offering. Because it is management’s stated intention to redeem the principal amount of our 1 3 4 Note 4 – Long-Term Debt Note 4 – Long-Term Debt Note 4 – Long-Term Debt |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 3 – 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 gas production and cash flows from operating activities. Instruments not qualifying as hedging instruments are recorded in our balance sheet at fair value, and 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 with various counterparties for a portion of our expected 2015 and 2016 oil and natural gas production from the Gulf Coast Basin. Our fixed-price oil swap 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. Our fixed-price swap contracts are with The Toronto-Dominion Bank, Barclays Bank PLC, The Bank of Nova Scotia, Bank of America and Natixis. The following table illustrates our derivative positions for calendar years 2015 and 2016 as of August 5, 2015: Fixed-Price Swaps (NYMEX) Natural Gas Oil Daily Volume Swap Price Daily Volume (Bbls/d) Swap Price ($) 2015 10,000 4.005 1,000 89.00 2015 10,000 4.120 1,000 90.00 2015 10,000 4.150 1,000 90.25 2015 10,000 4.165 1,000 90.40 2015 10,000 4.220 1,000 91.05 2015 10,000 4.255 1,000 93.28 2015 1,000 93.37 2015 1,000 94.85 2015 1,000 95.00 2016 10,000 4.110 1,000 90.00 2016 10,000 4.120 During 2014, certain of our natural gas derivative instruments no longer qualified as cash flow hedges, as it was no longer probable, subsequent to the sale of our non-core Gulf of Mexico (“GOM”) conventional shelf properties (see Note 6 – Divestitures 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 June 30, 2015 and December 31, 2014: Fair Value of Derivatives Qualifying as Hedging Instruments at June 30, 2015 (In millions) Asset Derivatives Liability Derivatives Description Balance Sheet Location Fair Value Balance Sheet Location Fair Commodity contracts Current assets: Fair value of $ 67.5 Current liabilities: Fair value $ — Long-term assets: Fair value 8.2 Long-term liabilities: Fair — $ 75.7 $ — Fair Value of Derivatives Qualifying as Hedging Instruments at December 31, 2014 (In millions) Asset Derivatives Liability Derivatives Description Balance Sheet Location Fair Balance Sheet Location Fair Commodity contracts Current assets: Fair value of $ 127.0 Current liabilities: Fair value $ — Long-term assets: Fair value 14.3 Long-term liabilities: Fair — $ 141.3 $ — The following tables disclose the before tax effect of derivatives qualifying as hedging instruments, as reported in the statement of operations, for the three and six months ended June 30, 2015 and 2014: Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Three Months Ended June 30, 2015 and 2014 (In millions) Derivatives in Cash Flow Hedging Relationships Amount of Gain Gain (Loss) Reclassified from Accumulated Other Comprehensive (Effective Portion) (a) Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) 2015 2014 Location 2015 2014 Location 2015 2014 Commodity contracts ($ 18.8 ) ($ 26.0 ) Operating revenue - $ 30.4 ($ 9.2 ) Derivative income (expense), net ($ 0.4 ) ($ 1.0 ) Total ($ 18.8 ) ($ 26.0 ) $ 30.4 ($ 9.2 ) ($ 0.4 ) ($ 1.0 ) (a) For the three months ended June 30, 2015, effective hedging contracts increased oil revenue by $26.4 million and increased gas revenue by $4.0 million. For the three months ended June 30, 2014, effective hedging contracts decreased oil revenue by $6.1 million and decreased gas revenue by $3.1 million. Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Six Months Ended June 30, 2015 and 2014 (In millions) Derivatives in Cash Flow Hedging Relationships Amount of Gain Gain (Loss) Reclassified from Accumulated Other Comprehensive (Effective Portion) (a) Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) 2015 2014 Location 2015 2014 Location 2015 2014 Commodity contracts $ 4.1 ($ 43.4 ) Operating revenue - oil/gas production $ 67.2 ($ 16.3 ) Derivative income (expense), net $ 0.5 ($ 1.6 ) Total $ 4.1 ($ 43.4 ) $ 67.2 ($ 16.3 ) $ 0.5 ($ 1.6 ) (a) For the six months ended June 30, 2015, effective hedging contracts increased oil revenue by $60.4 million and increased gas revenue by $6.8 million. For the six months ended June 30, 2014, effective hedging contracts decreased oil revenue by $8.6 million and decreased gas revenue by $7.7 million. Derivatives not qualifying as hedging instruments: The following table discloses the location and fair value amounts of our derivatives not qualifying as hedging instruments, as reported in our balance sheet, at June 30, 2015 and December 31, 2014: Fair Value of Derivatives Not Qualifying as Hedging Instruments (In millions) Description Balance Sheet Location June 30, December 31, Commodity contracts Current assets: Fair value of derivative contracts $ 6.8 $ 12.1 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 and six months ended June 30, 2015 and 2014. Amount of Gain (Loss) Recognized in Derivative Income (Expense) (In millions) Three Months Ended June 30, Six Months Ended June 30, Description 2015 2014 2015 2014 Commodity contracts: Cash settlements $ 4.1 $ — $ 7.2 $ — Change in fair value (4.4 ) (1.5 ) (5.3 ) (1.5 ) Total gains (losses) on non-qualifying hedges ($ 0.3 ) ($ 1.5 ) $ 1.9 ($ 1.5 ) 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 June 30, 2015 and December 31, 2014, all of our derivative contracts were in an asset position and therefore, there was no potential impact of the rights of offset. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 4 – Long-Term Debt Long-term debt consisted of the following at: June 30, 2015 December 31, (In millions) 1 3 4 $ 273.4 $ 266.0 7 1 2 775.0 775.0 Bank debt — — Total long-term debt $ 1,048.4 $ 1,041.0 Bank Debt. The borrowing base under the bank credit facility is redetermined semi-annually, typically in 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. If a reduction in our borrowing base were to fall below any outstanding balances under the bank credit facility plus any outstanding letters of credit, our agreement with the banks allows us one or more of three options to cure the borrowing base deficiency. We may (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. The bank credit facility is collateralized by substantially all of the assets of Stone and its material subsidiaries. They are required to mortgage, and grant a security interest in, their oil and natural gas reserves representing at least 80% of the discounted present value of the future net cash flows from their 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 the election of Stone. The margin for loans at the LIBOR rate is determined based on borrowing base utilization and ranges from 1.500% to 2.500%. The bank credit facility provides for optional and mandatory prepayments and affirmative and negative covenants, including interest coverage ratio and leverage ratio maintenance covenants. We were in compliance with all covenants as of June 30, 2015. 2017 Convertible Notes. 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 June 30, 2015, the carrying amount of the liability component of the 2017 Convertible Notes was $273.4 million. During the three and six months ended June 30, 2015, we recognized $3.7 million and $7.4 million, respectively, of interest expense for the amortization of the discount and $0.4 million and $0.7 million, respectively, of interest expense for the amortization of deferred financing costs related to the 2017 Convertible Notes. During the three and six months ended June 30, 2014, we recognized $3.5 million and $6.8 million, respectively, of interest expense for the amortization of the discount and $0.3 million and $0.6 million, respectively, of interest expense for the amortization of deferred financing costs related to the 2017 Convertible Notes. During the three and six months ended June 30, 2015, we recognized $1.3 million and $2.6 million, respectively, of interest expense related to the contractual interest coupon on the 2017 Convertible Notes. During the three and six months ended June 30, 2014, we recognized $1.3 million and $2.6 million, respectively, of interest expense related to the contractual interest coupon on the 2017 Convertible Notes. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Note 5 – Asset Retirement Obligations The change in our asset retirement obligations during the six months ended June 30, 2015 is set forth below: Six Months Ended June 30, 2015 (In millions) Asset retirement obligations as of the beginning of the period, including current portion $ 316.4 Liabilities incurred 3.5 Liabilities settled (35.9 ) Accretion expense 12.8 Asset retirement obligations as of the end of the period, including current portion $ 296.8 |
Divestitures
Divestitures | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Divestitures | Note 6 – Divestitures On July 31, 2014, we completed the sale of certain of our non-core properties in the GOM conventional shelf for cash consideration of approximately $177.6 million, after giving effect to preliminary purchase price adjustments. All of the proceeds from this sale were deposited with a Qualified Intermediary (under the terms of a Qualified Trust Agreement and Exchange Agreement) for potential reinvestment in like-kind replacement property as defined under Section 1031 of the Internal Revenue Code and were included in our balance sheet as restricted cash at December 31, 2014. Compliance with provisions under the Qualified Trust Agreement and Exchange Agreement provided for deferral of taxable gain on these sales proceeds. We identified qualified replacement properties and had until January 27, 2015 to close on an acquisition of such properties in order to achieve deferral of our taxable gain. We did not close on such a transaction by January 27, 2015, and the funds were released from restrictions and reclassified to cash and cash equivalents at such date. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 – 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 June 30, 2015 and December 31, 2014, we held certain financial assets and liabilities 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. For a more detailed description of our derivative instruments, see Note 3 – Derivative Instruments and Hedging Activities The following tables present our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2015: Fair Value Measurements at June 30, 2015 Assets Total Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) (In millions) Marketable securities (Other assets) $ 8.8 $ 8.8 $ — $ — Derivative contracts 82.6 — 82.6 — Total $ 91.4 $ 8.8 $ 82.6 $ — Fair Value Measurements at June 30, 2015 Liabilities Total Quoted Prices in Active Markets for Identical Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) Derivative contracts $ — $ — $ — $ — Total $ — $ — $ — $ — The following tables present our assets and liabilities that are measured at fair value on a recurring basis at December 31, 2014: Fair Value Measurements at December 31, 2014 Assets Total Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) (In millions) Marketable securities (Other assets) $ 8.4 $ 8.4 $ — $ — Derivative contracts 153.5 — 153.5 — Total $ 161.9 $ 8.4 $ 153.5 $ — Fair Value Measurements at December 31, 2014 Liabilities Total Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) (In millions) Derivative contracts $ — $ — $ — $ — Total $ — $ — $ — $ — The fair value of cash and cash equivalents approximated book value at June 30, 2015 and December 31, 2014. As of June 30, 2015 and December 31, 2014, the fair value of the liability component of the 2017 Convertible Notes was approximately $264.9 million and $252.6 million, respectively. As of June 30, 2015 and December 31, 2014, the fair value of the 7 1 2 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 4 – Long-Term Debt |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 8 – Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2015 were as follows (in millions): Cash Flow Foreign Total For the Three Months Ended June 30, 2015 Beginning balance, net of tax $ 77.9 ($ 7.1 ) $ 70.8 Other comprehensive income (loss) before reclassifications: Change in fair value of derivatives (18.8 ) — (18.8 ) Foreign currency translations — 1.3 1.3 Income tax effect 6.9 — 6.9 Net of tax (11.9 ) 1.3 (10.6 ) Amounts reclassified from accumulated other comprehensive income: Operating revenue: oil/gas production 30.4 — 30.4 Income tax effect (10.9 ) — (10.9 ) Net of tax 19.5 — 19.5 Other comprehensive income (loss), net of tax (31.4 ) 1.3 (30.1 ) Ending balance, net of tax $ 46.5 ($ 5.8 ) $ 40.7 Cash Flow Foreign Total For the Six Months Ended June 30, 2015 Beginning balance, net of tax $ 86.8 ($ 3.5 ) $ 83.3 Other comprehensive income (loss) before reclassifications: Change in fair value of derivatives 4.1 — 4.1 Foreign currency translations — (2.3 ) (2.3 ) Income tax effect (1.3 ) — (1.3 ) Net of tax 2.8 (2.3 ) 0.5 Amounts reclassified from accumulated other comprehensive income: Operating revenue: oil/gas production 67.2 — 67.2 Income tax effect (24.1 ) — (24.1 ) Net of tax 43.1 — 43.1 Other comprehensive income (loss), net of tax (40.3 ) (2.3 ) (42.6 ) Ending balance, net of tax $ 46.5 ($ 5.8 ) $ 40.7 Changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2014, were as follows (in millions): Cash Flow Foreign Total For the Three Months Ended June 30, 2014 Beginning balance, net of tax ($ 8.0 ) ($ 1.2 ) ($ 9.2 ) Other comprehensive income (loss) before reclassifications: Change in fair value of derivatives (26.0 ) — (26.0 ) Foreign currency translations — 0.8 0.8 Income tax effect 9.4 — 9.4 Net of tax (16.6 ) 0.8 (15.8 ) Amounts reclassified from accumulated other comprehensive income: Operating revenue: oil/gas production (9.2 ) — (9.2 ) Derivative expense, net (1.5 ) — (1.5 ) Income tax effect 3.9 — 3.9 Net of tax (6.8 ) — (6.8 ) Other comprehensive income (loss), net of tax (9.8 ) 0.8 (9.0 ) Ending balance, net of tax ($ 17.8 ) ($ 0.4 ) ($ 18.2 ) Cash Flow Foreign Total For the Six Months Ended June 30, 2014 Beginning balance, net of tax ($ 1.4 ) ($ 0.7 ) ($ 2.1 ) Other comprehensive income (loss) before reclassifications: Change in fair value of derivatives (43.4 ) — (43.4 ) Foreign currency translations — 0.3 0.3 Income tax effect 15.7 — 15.7 Net of tax (27.7 ) 0.3 (27.4 ) Amounts reclassified from accumulated other comprehensive income: Operating revenue: oil/gas production (16.3 ) — (16.3 ) Derivative expense, net (1.5 ) — (1.5 ) Income tax effect 6.5 — 6.5 Net of tax (11.3 ) — (11.3 ) Other comprehensive income (loss), net of tax (16.4 ) 0.3 (16.1 ) Ending balance, net of tax ($ 17.8 ) ($ 0.4 ) ($ 18.2 ) |
Investment in Oil and Gas Prope
Investment in Oil and Gas Properties | 6 Months Ended |
Jun. 30, 2015 | |
Extractive Industries [Abstract] | |
Investment in Oil and Gas Properties | Note 9 – 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 June 30, 2015, our ceiling test computation resulted in a write-down of our U.S. oil and gas properties of $179.1 million based on twelve month average prices, net of applicable differentials, of $68.68 per barrel of oil, $2.47 per Mcf of natural gas and $29.13 per barrel of natural gas liquids (“NGLs”). The write-down at June 30, 2015 was decreased by $47.8 million as a result of hedges. At March 31, 2015, our ceiling test computation resulted in a write-down of our U.S. oil and gas properties of $491.4 million based on twelve month average prices, net of applicable differentials, of $78.99 per barrel of oil, $2.96 per Mcf of natural gas and $28.82 per barrel of NGLs. The write-down at March 31, 2015 was decreased by $28.7 million as a result of hedges. In April 2013, we entered into an agreement to participate in the drilling of exploratory wells in Canada. Upon a more complete evaluation of this project and in response to the significant decline in commodity prices over the last several months, we have suspended our business development effort in Canada. Accordingly, at June 30, 2015, we recognized a write-down of our Canadian oil and gas properties of $45.2 million. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 – Commitments and Contingencies We are named as a party in certain lawsuits and regulatory proceedings arising in the ordinary course of business. We do not expect that these matters, individually or in the aggregate, will have a material adverse effect on our financial condition. On August 2, 2013, Kimmeridge Energy Exploration Fund, L.P. (“Kimmeridge”) filed a lawsuit against Stone in the 15 th |
Guarantor Financial Statements
Guarantor Financial Statements | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor Financial Statements | Note 11 – Guarantor Financial Statements Our Guarantor Subsidiaries, 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 June 30, 2015 and December 31, 2014 and for the three and six month periods ended June 30, 2015 and 2014 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 JUNE 30, 2015 (In thousands) Parent Guarantor Non- Guarantor Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 116,427 $ 25,034 $ 194 $ — $ 141,655 Accounts receivable 38,735 243,846 31 (213,906 ) 68,706 Fair value of derivative contracts — 74,319 — — 74,319 Current income tax receivable 6 — — — 6 Inventory 3,426 283 — — 3,709 Other current assets 10,007 — 69 — 10,076 Total current assets 168,601 343,482 294 (213,906 ) 298,471 Oil and gas properties, full cost method: Proved 1,778,480 7,251,498 44,447 — 9,074,425 Less: accumulated DD&A (1,724,404 ) (6,077,492 ) (44,447 ) — (7,846,343 ) Net proved oil and gas properties 54,076 1,174,006 — — 1,228,082 Unevaluated 300,360 227,067 2,162 — 529,589 Other property and equipment, net 30,736 — — — 30,736 Fair value of derivative contracts — 8,231 — — 8,231 Deferred taxes * — — 16,266 (16,266 ) — Other assets, net 25,149 1,385 1,548 — 28,082 Investment in subsidiary 1,057,810 — 20,083 (1,077,893 ) — Total assets $ 1,636,732 $ 1,754,171 $ 40,353 ($ 1,308,065 ) $ 2,123,191 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable to vendors $ 56,763 $ 216,834 $ 9,732 ($ 213,906 ) $ 69,423 Undistributed oil and gas proceeds 16,093 907 — — 17,000 Accrued interest 9,027 — — — 9,027 Deferred taxes * 298 6,767 — — 7,065 Asset retirement obligations — 56,176 — — 56,176 Other current liabilities 46,724 56 — — 46,780 Total current liabilities 128,905 280,740 9,732 (213,906 ) 205,471 Long-term debt 1,048,406 — — — 1,048,406 Deferred taxes * (161,285 ) 189,303 — (16,266 ) 11,752 Asset retirement obligations 3,757 236,856 — — 240,613 Other long-term liabilities 32,213 — — — 32,213 Total liabilities 1,051,996 706,899 9,732 (230,172 ) 1,538,455 Commitments and contingencies Stockholders’ equity: Common stock 553 — — — 553 Treasury stock (860 ) — — — (860 ) Additional paid-in capital 1,639,389 1,367,434 100,023 (1,467,457 ) 1,639,389 Accumulated deficit (1,095,002 ) (366,607 ) (57,824 ) 424,431 (1,095,002 ) Accumulated other comprehensive income (loss) 40,656 46,445 (11,578 ) (34,867 ) 40,656 Total stockholders’ equity 584,736 1,047,272 30,621 (1,077,893 ) 584,736 Total liabilities and stockholders’ equity $ 1,636,732 $ 1,754,171 $ 40,353 ($ 1,308,065 ) $ 2,123,191 * Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside. CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2014 (In thousands) Parent Guarantor Non- Guarantor Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 72,886 $ 1,450 $ 152 $ — $ 74,488 Restricted cash 177,647 — — — 177,647 Accounts receivable 73,711 46,615 33 — 120,359 Fair value of derivative contracts — 139,179 — — 139,179 Current income tax receivable 7,212 — — — 7,212 Deferred taxes * 4,095 — — (4,095 ) — Inventory 1,011 2,698 — — 3,709 Other current assets 8,112 — 6 — 8,118 Total current assets 344,674 189,942 191 (4,095 ) 530,712 Oil and gas properties, full cost method: Proved 1,689,802 7,127,466 — — 8,817,268 Less: accumulated DD&A (970,387 ) (6,000,244 ) — — (6,970,631 ) Net proved oil and gas properties 719,415 1,127,222 — — 1,846,637 Unevaluated 289,556 241,230 36,579 — 567,365 Other property and equipment, net 32,340 — — — 32,340 Fair value of derivative contracts — 14,333 — — 14,333 Other assets, net 20,857 1,360 5,007 — 27,224 Investment in subsidiary 1,050,546 — 41,638 (1,092,184 ) — Total assets $ 2,457,388 $ 1,574,087 $ 83,415 ($ 1,096,279 ) $ 3,018,611 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable to vendors $ 74,756 $ 57,873 $ — $ — $ 132,629 Undistributed oil and gas proceeds 22,158 1,074 — — 23,232 Accrued interest 9,022 — — — 9,022 Deferred taxes * — 24,214 — (4,095 ) 20,119 Asset retirement obligations — 69,400 — — 69,400 Other current liabilities 49,306 199 — — 49,505 Total current liabilities 155,242 152,760 — (4,095 ) 303,907 Long-term debt 1,041,035 — — — 1,041,035 Deferred taxes * 117,206 169,137 — — 286,343 Asset retirement obligations 3,588 243,421 — — 247,009 Other long-term liabilities 38,714 — — — 38,714 Total liabilities 1,355,785 565,318 — (4,095 ) 1,917,008 Commitments and contingencies Stockholders’ equity: Common stock 549 — — — 549 Treasury stock (860 ) — — — (860 ) Additional paid-in capital 1,633,307 1,362,684 90,339 (1,453,023 ) 1,633,307 Accumulated earnings (deficit) (614,708 ) (440,699 ) 12 440,687 (614,708 ) Accumulated other comprehensive income (loss) 83,315 86,784 (6,936 ) (79,848 ) 83,315 Total stockholders’ equity 1,101,603 1,008,769 83,415 (1,092,184 ) 1,101,603 Total liabilities and stockholders’ equity $ 2,457,388 $ 1,574,087 $ 83,415 ($ 1,096,279 ) $ 3,018,611 * Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED JUNE 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenue: Oil production $ 6,504 $ 105,081 $ — $ — $ 111,585 Natural gas production 15,647 11,260 — — 26,907 Natural gas liquids production 8,077 2,956 — — 11,033 Total operating revenue 30,228 119,297 — — 149,525 Operating expenses: Lease operating expenses 5,111 22,318 — — 27,429 Transportation, processing and gathering expenses 17,974 1,966 — — 19,940 Production taxes 1,436 391 — — 1,827 Depreciation, depletion, amortization 44,052 33,899 — — 77,951 Write-down of oil and gas properties 179,125 — 45,169 — 224,294 Accretion expense 91 6,317 — — 6,408 Salaries, general and administrative 16,398 — 20 — 16,418 Incentive compensation expense 1,264 — — — 1,264 Other operational expense 1,454 — — — 1,454 Derivative expense, net — 701 — — 701 Total operating expenses 266,905 65,592 45,189 — 377,686 Income (loss) from operations (236,677 ) 53,705 (45,189 ) — (228,161 ) Other (income) expenses: Interest expense 10,472 — — — 10,472 Interest income (46 ) (19 ) (1 ) — (66 ) Other income (187 ) (423 ) (3 ) — (613 ) (Income) loss from investment in subsidiaries (16,147 ) — 28,918 (12,771 ) — Total other (income) expenses (5,908 ) (442 ) 28,914 (12,771 ) 9,793 Income (loss) before taxes (230,769 ) 54,147 (74,103 ) 12,771 (237,954 ) Provision (benefit) for income taxes: Deferred (77,863 ) 9,082 (16,267 ) — (85,048 ) Total income taxes (77,863 ) 9,082 (16,267 ) — (85,048 ) Net income (loss) ($ 152,906 ) $ 45,065 ($ 57,836 ) $ 12,771 ($ 152,906 ) Comprehensive income (loss) ($ 183,062 ) $ 45,065 ($ 57,836 ) $ 12,771 ($ 183,062 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED JUNE 30, 2014 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenue: Oil production $ 5,854 $ 136,539 $ — $ — $ 142,393 Natural gas production 20,800 25,867 — — 46,667 Natural gas liquids production 10,219 5,717 — — 15,936 Other operational income 1,880 170 — — 2,050 Total operating revenue 38,753 168,293 — — 207,046 Operating expenses: Lease operating expenses 5,046 44,408 — — 49,454 Transportation, processing and gathering expenses 10,456 3,642 — — 14,098 Production taxes 1,903 1,354 — — 3,257 Depreciation, depletion, amortization 30,385 62,450 — — 92,835 Accretion expense 61 7,672 — — 7,733 Salaries, general and administrative 16,639 — (2 ) — 16,637 Incentive compensation expense 3,903 — — — 3,903 Derivative expense, net — 2,516 — — 2,516 Total operating expenses 68,393 122,042 (2 ) — 190,433 Income (loss) from operations (29,640 ) 46,251 2 — 16,613 Other (income) expenses: Interest expense 9,880 33 — — 9,913 Interest income (146 ) (41 ) (6 ) — (193 ) Other income (192 ) (530 ) — — (722 ) Other expense 179 — — — 179 Income from investment in subsidiaries (29,947 ) — (8 ) 29,955 — Total other (income) expenses (20,226 ) (538 ) (14 ) 29,955 9,177 Income (loss) before taxes (9,414 ) 46,789 16 (29,955 ) 7,436 Provision (benefit) for income taxes: Deferred (13,858 ) 16,850 — — 2,992 Total income taxes (13,858 ) 16,850 — — 2,992 Net income $ 4,444 $ 29,939 $ 16 ($ 29,955 ) $ 4,444 Comprehensive income (loss) ($ 4,566 ) $ 29,939 $ 16 ($ 29,955 ) ($ 4,566 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenue: Oil production $ 10,854 $ 208,238 $ — $ — $ 219,092 Natural gas production 32,264 22,980 — — 55,244 Natural gas liquids production 17,956 5,443 — — 23,399 Other operational income 1,792 — — — 1,792 Derivative income, net — 2,427 — — 2,427 Total operating revenue 62,866 239,088 — — 301,954 Operating expenses: Lease operating expenses 10,087 44,919 — — 55,006 Transportation, processing and gathering expenses 34,082 3,561 — — 37,643 Production taxes 3,634 708 — — 4,342 Depreciation, depletion, amortization 86,164 78,209 — — 164,373 Write-down of oil and gas properties 670,537 — 45,169 — 715,706 Accretion expense 182 12,635 — — 12,817 Salaries, general and administrative 33,399 1 25 — 33,425 Incentive compensation expense 2,827 — — — 2,827 Other operational expense 1,170 — — — 1,170 Total operating expenses 842,082 140,033 45,194 — 1,027,309 Income (loss) from operations (779,216 ) 99,055 (45,194 ) — (725,355 ) Other (income) expenses: Interest expense 20,816 21 — — 20,837 Interest income (147 ) (35 ) (6 ) — (188 ) Other income (320 ) (433 ) (3 ) — (756 ) (Income) loss from investment in subsidiaries (45,174 ) — 28,918 16,256 — Total other (income) expenses (24,825 ) (447 ) 28,909 16,256 19,893 Income (loss) before taxes (754,391 ) 99,502 (74,103 ) (16,256 ) (745,248 ) Provision (benefit) for income taxes: Deferred (274,097 ) 25,410 (16,267 ) — (264,954 ) Total income taxes (274,097 ) 25,410 (16,267 ) — (264,954 ) Net income (loss) ($ 480,294 ) $ 74,092 ($ 57,836 ) ($ 16,256 ) ($ 480,294 ) Comprehensive income (loss) ($ 522,953 ) $ 74,092 ($ 57,836 ) ($ 16,256 ) ($ 522,953 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 2014 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenue: Oil production $ 12,490 $ 268,192 $ — $ — $ 280,682 Gas production 49,639 53,390 — — 103,029 Natural gas liquids production 28,473 15,433 — — 43,906 Other operational income 2,704 343 — — 3,047 Total operating revenue 93,306 337,358 — — 430,664 Operating expenses: Lease operating expenses 9,059 87,298 — — 96,357 Transportation, processing and gathering expenses 20,773 7,951 — — 28,724 Production taxes 3,584 2,735 — — 6,319 Depreciation, depletion, amortization 58,440 117,041 — — 175,481 Accretion expense 129 15,159 — — 15,288 Salaries, general and administrative 32,964 2 — — 32,966 Incentive compensation expense 7,037 — — — 7,037 Other operational expenses 176 36 — — 212 Derivative expense, net — 3,115 — — 3,115 Total operating expenses 132,162 233,337 — — 365,499 Income (loss) from operations (38,856 ) 104,021 — — 65,165 Other (income) expenses: Interest expense 18,233 37 — — 18,270 Interest income (225 ) (99 ) (12 ) — (336 ) Other income (373 ) (1,056 ) — — (1,429 ) Other expense 179 — — — 179 Income from investment in subsidiaries (67,292 ) — (12 ) 67,304 — Total other (income) expenses (49,478 ) (1,118 ) (24 ) 67,304 16,684 Income before taxes 10,622 105,139 24 (67,304 ) 48,481 Provision (benefit) for income taxes: Deferred (19,765 ) 37,859 — — 18,094 Total income taxes (19,765 ) 37,859 — — 18,094 Net income $ 30,387 $ 67,280 $ 24 ($ 67,304 ) $ 30,387 Comprehensive income $ 14,288 $ 67,280 $ 24 ($ 67,304 ) $ 14,288 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2015 (In thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net income (loss) ($ 480,294 ) $ 74,092 ($ 57,836 ) ($ 16,256 ) ($ 480,294 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, depletion and amortization 86,164 78,209 — — 164,373 Write-down of oil and gas properties 670,537 — 45,169 — 715,706 Accretion expense 182 12,635 — — 12,817 Deferred income tax (benefit) provision (274,097 ) 25,410 (16,267 ) — (264,954 ) Settlement of asset retirement obligations (14 ) (35,909 ) — — (35,923 ) Non-cash stock compensation expense 6,028 — — — 6,028 Non-cash derivative expense — 7,931 — — 7,931 Non-cash interest expense 8,737 — — — 8,737 Change in current income taxes 7,206 — — — 7,206 Non-cash (income) expense from investment in subsidiaries (45,174 ) — 28,918 16,256 — Change in intercompany receivables/payables 15,070 (24,802 ) 9,732 — — Decrease in accounts receivable 16,968 6,079 — — 23,047 Increase in other current assets (1,895 ) — (64 ) — (1,959 ) (Increase) decrease in inventory (2,415 ) 2,415 — — — Decrease in accounts payable (500 ) (7,326 ) — — (7,826 ) Decrease in other current liabilities (8,409 ) (311 ) — — (8,720 ) Other (71 ) (433 ) — — (504 ) Net cash (used in) provided by operating activities (1,977 ) 137,990 9,652 — 145,665 Cash flows from investing activities: Investment in oil and gas properties (128,333 ) (124,506 ) (11,516 ) — (264,355 ) Proceeds from sale of oil and gas properties, net of expenses — 10,100 — — 10,100 Investment in fixed and other assets (727 ) — — — (727 ) Change in restricted funds 177,647 — 1,828 — 179,475 Investment in subsidiaries — — (9,684 ) 9,684 — Net cash provided by (used in) investing activities 48,587 (114,406 ) (19,372 ) 9,684 (75,507 ) 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 — — 9,684 (9,684 ) — Net payments for share-based compensation (3,069 ) — — — (3,069 ) Net cash (used in) provided by financing activities (3,069 ) — 9,684 (9,684 ) (3,069 ) Effect of exchange rate changes on cash — — 78 — 78 Net change in cash and cash equivalents 43,541 23,584 42 — 67,167 Cash and cash equivalents, beginning of period 72,886 1,450 152 — 74,488 Cash and cash equivalents, end of period $ 116,427 $ 25,034 $ 194 $ — $ 141,655 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2014 (In thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net income $ 30,387 $ 67,280 $ 24 ($ 67,304 ) $ 30,387 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 58,440 117,041 — — 175,481 Accretion expense 129 15,159 — — 15,288 Deferred income tax (benefit) provision (19,765 ) 37,859 — — 18,094 Settlement of asset retirement obligations (82 ) (24,833 ) — — (24,915 ) Non-cash stock compensation expense 5,358 — — — 5,358 Non-cash derivative expense — 2,697 — — 2,697 Non-cash interest expense 8,229 — — — 8,229 Change in current income taxes (6 ) — — — (6 ) Non-cash income from investment in subsidiaries (67,292 ) — (12 ) 67,304 — Change in intercompany receivables/payables (126,526 ) 114,841 11,685 — — (Increase) decrease in accounts receivable (42,216 ) 16,692 — — (25,524 ) Increase in other current assets (82 ) — — — (82 ) Increase (decrease) in accounts payable 2,052 (209 ) — — 1,843 Increase in other current liabilities 48,987 1,798 — — 50,785 Other 381 (1,056 ) — — (675 ) Net cash (used in) provided by operating activities (102,006 ) 347,269 11,697 — 256,960 Cash flows from investing activities: Investment in oil and gas properties (121,836 ) (384,349 ) (11,719 ) — (517,904 ) Proceeds from sale of oil and gas properties, net of expenses 9,777 42,178 — — 51,955 Investment in fixed and other assets (3,896 ) — — — (3,896 ) Change in restricted funds — — (356 ) — (356 ) Investment in subsidiaries — — (12,176 ) 12,176 — Net cash used in investing activities (115,955 ) (342,171 ) (24,251 ) 12,176 (470,201 ) Cash flows from financing activities: Net proceeds from issuance of common stock 226,036 — — — 226,036 Deferred financing costs (3,167 ) — — — (3,167 ) Equity proceeds from parent — — 12,176 (12,176 ) — Net payments for share-based compensation (6,948 ) — — — (6,948 ) Net cash provided by financing activities 215,921 — 12,176 (12,176 ) 215,921 Effect of exchange rate on cash — — (18 ) — (18 ) Net change in cash and cash equivalents (2,040 ) 5,098 (396 ) — 2,662 Cash and cash equivalents, beginning of period 246,294 84,290 640 — 331,224 Cash and cash equivalents, end of period $ 244,254 $ 89,388 $ 244 $ — $ 333,886 |
Earnings Per Share (Policies)
Earnings Per Share (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earning Per Share | Because it is management’s stated intention to redeem the principal amount of our 1 3 4 Note 4 – Long-Term Debt Note 4 – Long-Term Debt Note 4 – Long-Term Debt |
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 gas production and cash flows from operating activities. Instruments not qualifying as hedging instruments are recorded in our balance sheet at fair value, and 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) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands, except per share data) Income (numerator): Basic: Net income (loss) ($ 152,906 ) $ 4,444 ($ 480,294 ) $ 30,387 Net income attributable to participating securities — (111 ) — (698 ) Net income (loss) attributable to common stock - basic ($ 152,906 ) $ 4,333 ($ 480,294 ) $ 29,689 Diluted: Net income (loss) ($ 152,906 ) $ 4,444 ($ 480,294 ) $ 30,387 Net income attributable to participating securities — (111 ) — (697 ) Net income (loss) attributable to common stock - diluted ($ 152,906 ) $ 4,333 ($ 480,294 ) $ 29,690 Weighted average shares (denominator): Weighted average shares - basic 55,251 52,050 55,216 50,540 Dilutive effect of stock options — 58 — 54 Dilutive effect of convertible notes — 265 — 133 Weighted average shares - diluted 55,251 52,373 55,216 50,727 Basic earnings (loss) per share ($ 2.77 ) $ 0.08 ($ 8.70 ) $ 0.59 Diluted earnings (loss) per share ($ 2.77 ) $ 0.08 ($ 8.70 ) $ 0.59 |
Derivative Instruments and He20
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Positions | The following table illustrates our derivative positions for calendar years 2015 and 2016 as of August 5, 2015: Fixed-Price Swaps (NYMEX) Natural Gas Oil Daily Volume Swap Price Daily Volume (Bbls/d) Swap Price ($) 2015 10,000 4.005 1,000 89.00 2015 10,000 4.120 1,000 90.00 2015 10,000 4.150 1,000 90.25 2015 10,000 4.165 1,000 90.40 2015 10,000 4.220 1,000 91.05 2015 10,000 4.255 1,000 93.28 2015 1,000 93.37 2015 1,000 94.85 2015 1,000 95.00 2016 10,000 4.110 1,000 90.00 2016 10,000 4.120 |
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 June 30, 2015 and December 31, 2014: Fair Value of Derivatives Qualifying as Hedging Instruments at June 30, 2015 (In millions) Asset Derivatives Liability Derivatives Description Balance Sheet Location Fair Value Balance Sheet Location Fair Commodity contracts Current assets: Fair value of $ 67.5 Current liabilities: Fair value $ — Long-term assets: Fair value 8.2 Long-term liabilities: Fair — $ 75.7 $ — Fair Value of Derivatives Qualifying as Hedging Instruments at December 31, 2014 (In millions) Asset Derivatives Liability Derivatives Description Balance Sheet Location Fair Balance Sheet Location Fair Commodity contracts Current assets: Fair value of $ 127.0 Current liabilities: Fair value $ — Long-term assets: Fair value 14.3 Long-term liabilities: Fair — $ 141.3 $ — |
Before Tax Effect of Derivative Instruments in Statement of Operations | The following tables disclose the before tax effect of derivatives qualifying as hedging instruments, as reported in the statement of operations, for the three and six months ended June 30, 2015 and 2014: Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Three Months Ended June 30, 2015 and 2014 (In millions) Derivatives in Cash Flow Hedging Relationships Amount of Gain Gain (Loss) Reclassified from Accumulated Other Comprehensive (Effective Portion) (a) Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) 2015 2014 Location 2015 2014 Location 2015 2014 Commodity contracts ($ 18.8 ) ($ 26.0 ) Operating revenue - $ 30.4 ($ 9.2 ) Derivative income (expense), net ($ 0.4 ) ($ 1.0 ) Total ($ 18.8 ) ($ 26.0 ) $ 30.4 ($ 9.2 ) ($ 0.4 ) ($ 1.0 ) (a) For the three months ended June 30, 2015, effective hedging contracts increased oil revenue by $26.4 million and increased gas revenue by $4.0 million. For the three months ended June 30, 2014, effective hedging contracts decreased oil revenue by $6.1 million and decreased gas revenue by $3.1 million. Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Six Months Ended June 30, 2015 and 2014 (In millions) Derivatives in Cash Flow Hedging Relationships Amount of Gain Gain (Loss) Reclassified from Accumulated Other Comprehensive (Effective Portion) (a) Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) 2015 2014 Location 2015 2014 Location 2015 2014 Commodity contracts $ 4.1 ($ 43.4 ) Operating revenue - oil/gas production $ 67.2 ($ 16.3 ) Derivative income (expense), net $ 0.5 ($ 1.6 ) Total $ 4.1 ($ 43.4 ) $ 67.2 ($ 16.3 ) $ 0.5 ($ 1.6 ) (a) For the six months ended June 30, 2015, effective hedging contracts increased oil revenue by $60.4 million and increased gas revenue by $6.8 million. For the six months ended June 30, 2014, effective hedging contracts decreased oil revenue by $8.6 million and decreased gas revenue by $7.7 million. |
Location and Fair Value Amounts of Derivative Instruments Not Qualifying as Hedging Instruments Reported in Balance Sheet | The following table discloses the location and fair value amounts of our derivatives not qualifying as hedging instruments, as reported in our balance sheet, at June 30, 2015 and December 31, 2014: Fair Value of Derivatives Not Qualifying as Hedging Instruments (In millions) Description Balance Sheet Location June 30, December 31, Commodity contracts Current assets: Fair value of derivative contracts $ 6.8 $ 12.1 |
Gains or Losses Related to Changes in Fair Value and Cash Settlements on 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 and six months ended June 30, 2015 and 2014. Amount of Gain (Loss) Recognized in Derivative Income (Expense) (In millions) Three Months Ended June 30, Six Months Ended June 30, Description 2015 2014 2015 2014 Commodity contracts: Cash settlements $ 4.1 $ — $ 7.2 $ — Change in fair value (4.4 ) (1.5 ) (5.3 ) (1.5 ) Total gains (losses) on non-qualifying hedges ($ 0.3 ) ($ 1.5 ) $ 1.9 ($ 1.5 ) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consisted of the following at: June 30, 2015 December 31, (In millions) 1 3 4 $ 273.4 $ 266.0 7 1 2 775.0 775.0 Bank debt — — Total long-term debt $ 1,048.4 $ 1,041.0 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Changes in Asset Retirement Obligations | The change in our asset retirement obligations during the six months ended June 30, 2015 is set forth below: Six Months Ended June 30, 2015 (In millions) Asset retirement obligations as of the beginning of the period, including current portion $ 316.4 Liabilities incurred 3.5 Liabilities settled (35.9 ) Accretion expense 12.8 Asset retirement obligations as of the end of the period, including current portion $ 296.8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value Recurring Basis | The following tables present our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2015: Fair Value Measurements at June 30, 2015 Assets Total Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) (In millions) Marketable securities (Other assets) $ 8.8 $ 8.8 $ — $ — Derivative contracts 82.6 — 82.6 — Total $ 91.4 $ 8.8 $ 82.6 $ — Fair Value Measurements at June 30, 2015 Liabilities Total Quoted Prices in Active Markets for Identical Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) Derivative contracts $ — $ — $ — $ — Total $ — $ — $ — $ — The following tables present our assets and liabilities that are measured at fair value on a recurring basis at December 31, 2014: Fair Value Measurements at December 31, 2014 Assets Total Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) (In millions) Marketable securities (Other assets) $ 8.4 $ 8.4 $ — $ — Derivative contracts 153.5 — 153.5 — Total $ 161.9 $ 8.4 $ 153.5 $ — Fair Value Measurements at December 31, 2014 Liabilities Total Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) (In millions) Derivative contracts $ — $ — $ — $ — Total $ — $ — $ — $ — |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income Loss | Changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2015 were as follows (in millions): Cash Flow Foreign Total For the Three Months Ended June 30, 2015 Beginning balance, net of tax $ 77.9 ($ 7.1 ) $ 70.8 Other comprehensive income (loss) before reclassifications: Change in fair value of derivatives (18.8 ) — (18.8 ) Foreign currency translations — 1.3 1.3 Income tax effect 6.9 — 6.9 Net of tax (11.9 ) 1.3 (10.6 ) Amounts reclassified from accumulated other comprehensive income: Operating revenue: oil/gas production 30.4 — 30.4 Income tax effect (10.9 ) — (10.9 ) Net of tax 19.5 — 19.5 Other comprehensive income (loss), net of tax (31.4 ) 1.3 (30.1 ) Ending balance, net of tax $ 46.5 ($ 5.8 ) $ 40.7 Cash Flow Foreign Total For the Six Months Ended June 30, 2015 Beginning balance, net of tax $ 86.8 ($ 3.5 ) $ 83.3 Other comprehensive income (loss) before reclassifications: Change in fair value of derivatives 4.1 — 4.1 Foreign currency translations — (2.3 ) (2.3 ) Income tax effect (1.3 ) — (1.3 ) Net of tax 2.8 (2.3 ) 0.5 Amounts reclassified from accumulated other comprehensive income: Operating revenue: oil/gas production 67.2 — 67.2 Income tax effect (24.1 ) — (24.1 ) Net of tax 43.1 — 43.1 Other comprehensive income (loss), net of tax (40.3 ) (2.3 ) (42.6 ) Ending balance, net of tax $ 46.5 ($ 5.8 ) $ 40.7 Changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2014, were as follows (in millions): Cash Flow Foreign Total For the Three Months Ended June 30, 2014 Beginning balance, net of tax ($ 8.0 ) ($ 1.2 ) ($ 9.2 ) Other comprehensive income (loss) before reclassifications: Change in fair value of derivatives (26.0 ) — (26.0 ) Foreign currency translations — 0.8 0.8 Income tax effect 9.4 — 9.4 Net of tax (16.6 ) 0.8 (15.8 ) Amounts reclassified from accumulated other comprehensive income: Operating revenue: oil/gas production (9.2 ) — (9.2 ) Derivative expense, net (1.5 ) — (1.5 ) Income tax effect 3.9 — 3.9 Net of tax (6.8 ) — (6.8 ) Other comprehensive income (loss), net of tax (9.8 ) 0.8 (9.0 ) Ending balance, net of tax ($ 17.8 ) ($ 0.4 ) ($ 18.2 ) Cash Flow Foreign Total For the Six Months Ended June 30, 2014 Beginning balance, net of tax ($ 1.4 ) ($ 0.7 ) ($ 2.1 ) Other comprehensive income (loss) before reclassifications: Change in fair value of derivatives (43.4 ) — (43.4 ) Foreign currency translations — 0.3 0.3 Income tax effect 15.7 — 15.7 Net of tax (27.7 ) 0.3 (27.4 ) Amounts reclassified from accumulated other comprehensive income: Operating revenue: oil/gas production (16.3 ) — (16.3 ) Derivative expense, net (1.5 ) — (1.5 ) Income tax effect 6.5 — 6.5 Net of tax (11.3 ) — (11.3 ) Other comprehensive income (loss), net of tax (16.4 ) 0.3 (16.1 ) Ending balance, net of tax ($ 17.8 ) ($ 0.4 ) ($ 18.2 ) |
Guarantor Financial Statements
Guarantor Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET JUNE 30, 2015 (In thousands) Parent Guarantor Non- Guarantor Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 116,427 $ 25,034 $ 194 $ — $ 141,655 Accounts receivable 38,735 243,846 31 (213,906 ) 68,706 Fair value of derivative contracts — 74,319 — — 74,319 Current income tax receivable 6 — — — 6 Inventory 3,426 283 — — 3,709 Other current assets 10,007 — 69 — 10,076 Total current assets 168,601 343,482 294 (213,906 ) 298,471 Oil and gas properties, full cost method: Proved 1,778,480 7,251,498 44,447 — 9,074,425 Less: accumulated DD&A (1,724,404 ) (6,077,492 ) (44,447 ) — (7,846,343 ) Net proved oil and gas properties 54,076 1,174,006 — — 1,228,082 Unevaluated 300,360 227,067 2,162 — 529,589 Other property and equipment, net 30,736 — — — 30,736 Fair value of derivative contracts — 8,231 — — 8,231 Deferred taxes * — — 16,266 (16,266 ) — Other assets, net 25,149 1,385 1,548 — 28,082 Investment in subsidiary 1,057,810 — 20,083 (1,077,893 ) — Total assets $ 1,636,732 $ 1,754,171 $ 40,353 ($ 1,308,065 ) $ 2,123,191 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable to vendors $ 56,763 $ 216,834 $ 9,732 ($ 213,906 ) $ 69,423 Undistributed oil and gas proceeds 16,093 907 — — 17,000 Accrued interest 9,027 — — — 9,027 Deferred taxes * 298 6,767 — — 7,065 Asset retirement obligations — 56,176 — — 56,176 Other current liabilities 46,724 56 — — 46,780 Total current liabilities 128,905 280,740 9,732 (213,906 ) 205,471 Long-term debt 1,048,406 — — — 1,048,406 Deferred taxes * (161,285 ) 189,303 — (16,266 ) 11,752 Asset retirement obligations 3,757 236,856 — — 240,613 Other long-term liabilities 32,213 — — — 32,213 Total liabilities 1,051,996 706,899 9,732 (230,172 ) 1,538,455 Commitments and contingencies Stockholders’ equity: Common stock 553 — — — 553 Treasury stock (860 ) — — — (860 ) Additional paid-in capital 1,639,389 1,367,434 100,023 (1,467,457 ) 1,639,389 Accumulated deficit (1,095,002 ) (366,607 ) (57,824 ) 424,431 (1,095,002 ) Accumulated other comprehensive income (loss) 40,656 46,445 (11,578 ) (34,867 ) 40,656 Total stockholders’ equity 584,736 1,047,272 30,621 (1,077,893 ) 584,736 Total liabilities and stockholders’ equity $ 1,636,732 $ 1,754,171 $ 40,353 ($ 1,308,065 ) $ 2,123,191 * Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside. CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2014 (In thousands) Parent Guarantor Non- Guarantor Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 72,886 $ 1,450 $ 152 $ — $ 74,488 Restricted cash 177,647 — — — 177,647 Accounts receivable 73,711 46,615 33 — 120,359 Fair value of derivative contracts — 139,179 — — 139,179 Current income tax receivable 7,212 — — — 7,212 Deferred taxes * 4,095 — — (4,095 ) — Inventory 1,011 2,698 — — 3,709 Other current assets 8,112 — 6 — 8,118 Total current assets 344,674 189,942 191 (4,095 ) 530,712 Oil and gas properties, full cost method: Proved 1,689,802 7,127,466 — — 8,817,268 Less: accumulated DD&A (970,387 ) (6,000,244 ) — — (6,970,631 ) Net proved oil and gas properties 719,415 1,127,222 — — 1,846,637 Unevaluated 289,556 241,230 36,579 — 567,365 Other property and equipment, net 32,340 — — — 32,340 Fair value of derivative contracts — 14,333 — — 14,333 Other assets, net 20,857 1,360 5,007 — 27,224 Investment in subsidiary 1,050,546 — 41,638 (1,092,184 ) — Total assets $ 2,457,388 $ 1,574,087 $ 83,415 ($ 1,096,279 ) $ 3,018,611 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable to vendors $ 74,756 $ 57,873 $ — $ — $ 132,629 Undistributed oil and gas proceeds 22,158 1,074 — — 23,232 Accrued interest 9,022 — — — 9,022 Deferred taxes * — 24,214 — (4,095 ) 20,119 Asset retirement obligations — 69,400 — — 69,400 Other current liabilities 49,306 199 — — 49,505 Total current liabilities 155,242 152,760 — (4,095 ) 303,907 Long-term debt 1,041,035 — — — 1,041,035 Deferred taxes * 117,206 169,137 — — 286,343 Asset retirement obligations 3,588 243,421 — — 247,009 Other long-term liabilities 38,714 — — — 38,714 Total liabilities 1,355,785 565,318 — (4,095 ) 1,917,008 Commitments and contingencies Stockholders’ equity: Common stock 549 — — — 549 Treasury stock (860 ) — — — (860 ) Additional paid-in capital 1,633,307 1,362,684 90,339 (1,453,023 ) 1,633,307 Accumulated earnings (deficit) (614,708 ) (440,699 ) 12 440,687 (614,708 ) Accumulated other comprehensive income (loss) 83,315 86,784 (6,936 ) (79,848 ) 83,315 Total stockholders’ equity 1,101,603 1,008,769 83,415 (1,092,184 ) 1,101,603 Total liabilities and stockholders’ equity $ 2,457,388 $ 1,574,087 $ 83,415 ($ 1,096,279 ) $ 3,018,611 * Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside. |
Condensed Consolidating Statement of Operations | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED JUNE 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenue: Oil production $ 6,504 $ 105,081 $ — $ — $ 111,585 Natural gas production 15,647 11,260 — — 26,907 Natural gas liquids production 8,077 2,956 — — 11,033 Total operating revenue 30,228 119,297 — — 149,525 Operating expenses: Lease operating expenses 5,111 22,318 — — 27,429 Transportation, processing and gathering expenses 17,974 1,966 — — 19,940 Production taxes 1,436 391 — — 1,827 Depreciation, depletion, amortization 44,052 33,899 — — 77,951 Write-down of oil and gas properties 179,125 — 45,169 — 224,294 Accretion expense 91 6,317 — — 6,408 Salaries, general and administrative 16,398 — 20 — 16,418 Incentive compensation expense 1,264 — — — 1,264 Other operational expense 1,454 — — — 1,454 Derivative expense, net — 701 — — 701 Total operating expenses 266,905 65,592 45,189 — 377,686 Income (loss) from operations (236,677 ) 53,705 (45,189 ) — (228,161 ) Other (income) expenses: Interest expense 10,472 — — — 10,472 Interest income (46 ) (19 ) (1 ) — (66 ) Other income (187 ) (423 ) (3 ) — (613 ) (Income) loss from investment in subsidiaries (16,147 ) — 28,918 (12,771 ) — Total other (income) expenses (5,908 ) (442 ) 28,914 (12,771 ) 9,793 Income (loss) before taxes (230,769 ) 54,147 (74,103 ) 12,771 (237,954 ) Provision (benefit) for income taxes: Deferred (77,863 ) 9,082 (16,267 ) — (85,048 ) Total income taxes (77,863 ) 9,082 (16,267 ) — (85,048 ) Net income (loss) ($ 152,906 ) $ 45,065 ($ 57,836 ) $ 12,771 ($ 152,906 ) Comprehensive income (loss) ($ 183,062 ) $ 45,065 ($ 57,836 ) $ 12,771 ($ 183,062 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED JUNE 30, 2014 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenue: Oil production $ 5,854 $ 136,539 $ — $ — $ 142,393 Natural gas production 20,800 25,867 — — 46,667 Natural gas liquids production 10,219 5,717 — — 15,936 Other operational income 1,880 170 — — 2,050 Total operating revenue 38,753 168,293 — — 207,046 Operating expenses: Lease operating expenses 5,046 44,408 — — 49,454 Transportation, processing and gathering expenses 10,456 3,642 — — 14,098 Production taxes 1,903 1,354 — — 3,257 Depreciation, depletion, amortization 30,385 62,450 — — 92,835 Accretion expense 61 7,672 — — 7,733 Salaries, general and administrative 16,639 — (2 ) — 16,637 Incentive compensation expense 3,903 — — — 3,903 Derivative expense, net — 2,516 — — 2,516 Total operating expenses 68,393 122,042 (2 ) — 190,433 Income (loss) from operations (29,640 ) 46,251 2 — 16,613 Other (income) expenses: Interest expense 9,880 33 — — 9,913 Interest income (146 ) (41 ) (6 ) — (193 ) Other income (192 ) (530 ) — — (722 ) Other expense 179 — — — 179 Income from investment in subsidiaries (29,947 ) — (8 ) 29,955 — Total other (income) expenses (20,226 ) (538 ) (14 ) 29,955 9,177 Income (loss) before taxes (9,414 ) 46,789 16 (29,955 ) 7,436 Provision (benefit) for income taxes: Deferred (13,858 ) 16,850 — — 2,992 Total income taxes (13,858 ) 16,850 — — 2,992 Net income $ 4,444 $ 29,939 $ 16 ($ 29,955 ) $ 4,444 Comprehensive income (loss) ($ 4,566 ) $ 29,939 $ 16 ($ 29,955 ) ($ 4,566 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenue: Oil production $ 10,854 $ 208,238 $ — $ — $ 219,092 Natural gas production 32,264 22,980 — — 55,244 Natural gas liquids production 17,956 5,443 — — 23,399 Other operational income 1,792 — — — 1,792 Derivative income, net — 2,427 — — 2,427 Total operating revenue 62,866 239,088 — — 301,954 Operating expenses: Lease operating expenses 10,087 44,919 — — 55,006 Transportation, processing and gathering expenses 34,082 3,561 — — 37,643 Production taxes 3,634 708 — — 4,342 Depreciation, depletion, amortization 86,164 78,209 — — 164,373 Write-down of oil and gas properties 670,537 — 45,169 — 715,706 Accretion expense 182 12,635 — — 12,817 Salaries, general and administrative 33,399 1 25 — 33,425 Incentive compensation expense 2,827 — — — 2,827 Other operational expense 1,170 — — — 1,170 Total operating expenses 842,082 140,033 45,194 — 1,027,309 Income (loss) from operations (779,216 ) 99,055 (45,194 ) — (725,355 ) Other (income) expenses: Interest expense 20,816 21 — — 20,837 Interest income (147 ) (35 ) (6 ) — (188 ) Other income (320 ) (433 ) (3 ) — (756 ) (Income) loss from investment in subsidiaries (45,174 ) — 28,918 16,256 — Total other (income) expenses (24,825 ) (447 ) 28,909 16,256 19,893 Income (loss) before taxes (754,391 ) 99,502 (74,103 ) (16,256 ) (745,248 ) Provision (benefit) for income taxes: Deferred (274,097 ) 25,410 (16,267 ) — (264,954 ) Total income taxes (274,097 ) 25,410 (16,267 ) — (264,954 ) Net income (loss) ($ 480,294 ) $ 74,092 ($ 57,836 ) ($ 16,256 ) ($ 480,294 ) Comprehensive income (loss) ($ 522,953 ) $ 74,092 ($ 57,836 ) ($ 16,256 ) ($ 522,953 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 2014 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Operating revenue: Oil production $ 12,490 $ 268,192 $ — $ — $ 280,682 Gas production 49,639 53,390 — — 103,029 Natural gas liquids production 28,473 15,433 — — 43,906 Other operational income 2,704 343 — — 3,047 Total operating revenue 93,306 337,358 — — 430,664 Operating expenses: Lease operating expenses 9,059 87,298 — — 96,357 Transportation, processing and gathering expenses 20,773 7,951 — — 28,724 Production taxes 3,584 2,735 — — 6,319 Depreciation, depletion, amortization 58,440 117,041 — — 175,481 Accretion expense 129 15,159 — — 15,288 Salaries, general and administrative 32,964 2 — — 32,966 Incentive compensation expense 7,037 — — — 7,037 Other operational expenses 176 36 — — 212 Derivative expense, net — 3,115 — — 3,115 Total operating expenses 132,162 233,337 — — 365,499 Income (loss) from operations (38,856 ) 104,021 — — 65,165 Other (income) expenses: Interest expense 18,233 37 — — 18,270 Interest income (225 ) (99 ) (12 ) — (336 ) Other income (373 ) (1,056 ) — — (1,429 ) Other expense 179 — — — 179 Income from investment in subsidiaries (67,292 ) — (12 ) 67,304 — Total other (income) expenses (49,478 ) (1,118 ) (24 ) 67,304 16,684 Income before taxes 10,622 105,139 24 (67,304 ) 48,481 Provision (benefit) for income taxes: Deferred (19,765 ) 37,859 — — 18,094 Total income taxes (19,765 ) 37,859 — — 18,094 Net income $ 30,387 $ 67,280 $ 24 ($ 67,304 ) $ 30,387 Comprehensive income $ 14,288 $ 67,280 $ 24 ($ 67,304 ) $ 14,288 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2015 (In thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net income (loss) ($ 480,294 ) $ 74,092 ($ 57,836 ) ($ 16,256 ) ($ 480,294 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, depletion and amortization 86,164 78,209 — — 164,373 Write-down of oil and gas properties 670,537 — 45,169 — 715,706 Accretion expense 182 12,635 — — 12,817 Deferred income tax (benefit) provision (274,097 ) 25,410 (16,267 ) — (264,954 ) Settlement of asset retirement obligations (14 ) (35,909 ) — — (35,923 ) Non-cash stock compensation expense 6,028 — — — 6,028 Non-cash derivative expense — 7,931 — — 7,931 Non-cash interest expense 8,737 — — — 8,737 Change in current income taxes 7,206 — — — 7,206 Non-cash (income) expense from investment in subsidiaries (45,174 ) — 28,918 16,256 — Change in intercompany receivables/payables 15,070 (24,802 ) 9,732 — — Decrease in accounts receivable 16,968 6,079 — — 23,047 Increase in other current assets (1,895 ) — (64 ) — (1,959 ) (Increase) decrease in inventory (2,415 ) 2,415 — — — Decrease in accounts payable (500 ) (7,326 ) — — (7,826 ) Decrease in other current liabilities (8,409 ) (311 ) — — (8,720 ) Other (71 ) (433 ) — — (504 ) Net cash (used in) provided by operating activities (1,977 ) 137,990 9,652 — 145,665 Cash flows from investing activities: Investment in oil and gas properties (128,333 ) (124,506 ) (11,516 ) — (264,355 ) Proceeds from sale of oil and gas properties, net of expenses — 10,100 — — 10,100 Investment in fixed and other assets (727 ) — — — (727 ) Change in restricted funds 177,647 — 1,828 — 179,475 Investment in subsidiaries — — (9,684 ) 9,684 — Net cash provided by (used in) investing activities 48,587 (114,406 ) (19,372 ) 9,684 (75,507 ) 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 — — 9,684 (9,684 ) — Net payments for share-based compensation (3,069 ) — — — (3,069 ) Net cash (used in) provided by financing activities (3,069 ) — 9,684 (9,684 ) (3,069 ) Effect of exchange rate changes on cash — — 78 — 78 Net change in cash and cash equivalents 43,541 23,584 42 — 67,167 Cash and cash equivalents, beginning of period 72,886 1,450 152 — 74,488 Cash and cash equivalents, end of period $ 116,427 $ 25,034 $ 194 $ — $ 141,655 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2014 (In thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net income $ 30,387 $ 67,280 $ 24 ($ 67,304 ) $ 30,387 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 58,440 117,041 — — 175,481 Accretion expense 129 15,159 — — 15,288 Deferred income tax (benefit) provision (19,765 ) 37,859 — — 18,094 Settlement of asset retirement obligations (82 ) (24,833 ) — — (24,915 ) Non-cash stock compensation expense 5,358 — — — 5,358 Non-cash derivative expense — 2,697 — — 2,697 Non-cash interest expense 8,229 — — — 8,229 Change in current income taxes (6 ) — — — (6 ) Non-cash income from investment in subsidiaries (67,292 ) — (12 ) 67,304 — Change in intercompany receivables/payables (126,526 ) 114,841 11,685 — — (Increase) decrease in accounts receivable (42,216 ) 16,692 — — (25,524 ) Increase in other current assets (82 ) — — — (82 ) Increase (decrease) in accounts payable 2,052 (209 ) — — 1,843 Increase in other current liabilities 48,987 1,798 — — 50,785 Other 381 (1,056 ) — — (675 ) Net cash (used in) provided by operating activities (102,006 ) 347,269 11,697 — 256,960 Cash flows from investing activities: Investment in oil and gas properties (121,836 ) (384,349 ) (11,719 ) — (517,904 ) Proceeds from sale of oil and gas properties, net of expenses 9,777 42,178 — — 51,955 Investment in fixed and other assets (3,896 ) — — — (3,896 ) Change in restricted funds — — (356 ) — (356 ) Investment in subsidiaries — — (12,176 ) 12,176 — Net cash used in investing activities (115,955 ) (342,171 ) (24,251 ) 12,176 (470,201 ) Cash flows from financing activities: Net proceeds from issuance of common stock 226,036 — — — 226,036 Deferred financing costs (3,167 ) — — — (3,167 ) Equity proceeds from parent — — 12,176 (12,176 ) — Net payments for share-based compensation (6,948 ) — — — (6,948 ) Net cash provided by financing activities 215,921 — 12,176 (12,176 ) 215,921 Effect of exchange rate on cash — — (18 ) — (18 ) Net change in cash and cash equivalents (2,040 ) 5,098 (396 ) — 2,662 Cash and cash equivalents, beginning of period 246,294 84,290 640 — 331,224 Cash and cash equivalents, end of period $ 244,254 $ 89,388 $ 244 $ — $ 333,886 |
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 | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic: | ||||
Net income (loss) | $ (152,906) | $ 4,444 | $ (480,294) | $ 30,387 |
Net income attributable to participating securities | (111) | (698) | ||
Net income (loss) attributable to common stock - basic | (152,906) | 4,333 | (480,294) | 29,689 |
Diluted: | ||||
Net income (loss) | (152,906) | 4,444 | (480,294) | 30,387 |
Net income attributable to participating securities | (111) | (697) | ||
Net income (loss) attributable to common stock - diluted | $ (152,906) | $ 4,333 | $ (480,294) | $ 29,690 |
Weighted average shares (denominator): | ||||
Weighted average shares - basic | 55,251 | 52,050 | 55,216 | 50,540 |
Dilutive effect of stock options | 58 | 54 | ||
Dilutive effect of convertible notes | 265 | 133 | ||
Weighted average shares - diluted | 55,251 | 52,373 | 55,216 | 50,727 |
Basic earnings (loss) per share | $ (2.77) | $ 0.08 | $ (8.70) | $ 0.59 |
Diluted earnings (loss) per share | $ (2.77) | $ 0.08 | $ (8.70) | $ 0.59 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Weighted Average Shares Used In Computing Earnings Per Share [Line Items] | ||||||
Antidilutive stock options outstanding | 174,000 | 120,000 | 174,000 | 131,000 | ||
Shares of common stock issued upon vesting of restricted stock | 29,000 | 40,000 | 399,000 | 372,000 | ||
Common stock issued | 5,750,000 | |||||
Convertible Debt [Member] | 1.75% Senior Notes due 2017 [Member] | ||||||
Weighted Average Shares Used In Computing Earnings Per Share [Line Items] | ||||||
Interest rate | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% |
Derivative Instruments and He28
Derivative Instruments and Hedging Activities - Hedging Positions (Detail) - Aug. 05, 2015 - Subsequent Event [Member] | MMBTUMBbls$ / MMBTU$ / bbl |
Oil (MBbls) [Member] | 2015 Hedging Position One [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | 1,000 |
Swap Price | $ / bbl | 89 |
Oil (MBbls) [Member] | 2015 Hedging Position Two [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | 1,000 |
Swap Price | $ / bbl | 90 |
Oil (MBbls) [Member] | 2015 Hedging Position Three [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | 1,000 |
Swap Price | $ / bbl | 90.25 |
Oil (MBbls) [Member] | 2015 Hedging Position Four [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | 1,000 |
Swap Price | $ / bbl | 90.40 |
Oil (MBbls) [Member] | 2015 Hedging Position Five [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | 1,000 |
Swap Price | $ / bbl | 91.05 |
Oil (MBbls) [Member] | 2015 Hedging Position Six [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | 1,000 |
Swap Price | $ / bbl | 93.28 |
Oil (MBbls) [Member] | 2015 Hedging Position Seven [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | 1,000 |
Swap Price | $ / bbl | 93.37 |
Oil (MBbls) [Member] | 2015 Hedging Position Eight [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | 1,000 |
Swap Price | $ / bbl | 94.85 |
Oil (MBbls) [Member] | 2015 Hedging Position Nine [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | 1,000 |
Swap Price | $ / bbl | 95 |
Oil (MBbls) [Member] | 2016 Hedging Position One [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | 1,000 |
Swap Price | $ / bbl | 90 |
Natural Gas (MMcfe) [Member] | 2015 Hedging Position One [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | MMBTU | 10,000 |
Swap Price | $ / MMBTU | 4.005 |
Natural Gas (MMcfe) [Member] | 2015 Hedging Position Two [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | MMBTU | 10,000 |
Swap Price | $ / MMBTU | 4.120 |
Natural Gas (MMcfe) [Member] | 2015 Hedging Position Three [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | MMBTU | 10,000 |
Swap Price | $ / MMBTU | 4.150 |
Natural Gas (MMcfe) [Member] | 2015 Hedging Position Four [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | MMBTU | 10,000 |
Swap Price | $ / MMBTU | 4.165 |
Natural Gas (MMcfe) [Member] | 2015 Hedging Position Five [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | MMBTU | 10,000 |
Swap Price | $ / MMBTU | 4.220 |
Natural Gas (MMcfe) [Member] | 2015 Hedging Position Six [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | MMBTU | 10,000 |
Swap Price | $ / MMBTU | 4.255 |
Natural Gas (MMcfe) [Member] | 2016 Hedging Position One [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | MMBTU | 10,000 |
Swap Price | $ / MMBTU | 4.110 |
Natural Gas (MMcfe) [Member] | 2016 Hedging Position Two [Member] | |
Derivatives, Fair Value [Line Items] | |
Daily Volume | MMBTU | 10,000 |
Swap Price | $ / MMBTU | 4.120 |
Derivative Instruments and He29
Derivative Instruments and Hedging Activities - Additional Information (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015USD ($) | Dec. 31, 2015Contract | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
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) | $ 40,656 | $ 70,800 | $ 83,315 | $ (18,200) | $ (9,200) | $ (2,100) | |
Accumulated other comprehensive income, to be reclassified into earnings in the next twelve months | 41,400 | ||||||
Cash Flow Hedges [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Accumulated other comprehensive income (loss) | $ 46,500 | $ 77,900 | $ 86,800 | $ (17,800) | $ (8,000) | $ (1,400) | |
Scenario, Forecast [Member] | Natural Gas (MMcfe) [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Number of Contracts no longer qualifying as cash flow hedges | Contract | 3 |
Derivative Instruments and He30
Derivative Instruments and Hedging Activities - Location and Fair Value Amounts of Derivative Instruments Reported in Balance Sheet (Detail) - Commodity Contracts [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Asset Derivatives | ||
Fair Value of Derivative Instruments, Assets | $ 75.7 | $ 141.3 |
Liability Derivatives | ||
Fair Value of Derivative Instruments, Liabilities | 0 | 0 |
Current Liabilities [Member] | ||
Liability Derivatives | ||
Fair Value of Derivative Instruments, Liabilities | 0 | 0 |
Long-Term Liabilities [Member] | ||
Liability Derivatives | ||
Fair Value of Derivative Instruments, Liabilities | 0 | 0 |
Current Assets [Member] | ||
Asset Derivatives | ||
Fair Value of Derivative Instruments, Assets | 67.5 | 127 |
Long-Term Assets [Member] | ||
Asset Derivatives | ||
Fair Value of Derivative Instruments, Assets | $ 8.2 | $ 14.3 |
Derivative Instruments and He31
Derivative Instruments and Hedging Activities - Before Tax Effect of Derivative Instruments in Statement of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion, Net, Total | $ (18.8) | $ (26) | $ 4.1 | $ (43.4) |
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion, Net, Total | (18.8) | (26) | 4.1 | (43.4) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net, Total | 30.4 | (9.2) | 67.2 | (16.3) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net, Total | (0.4) | (1) | 0.5 | (1.6) |
Cash Flow Hedging [Member] | Operating Revenue - Oil/Gas Production [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net, Total | 30.4 | (9.2) | 67.2 | (16.3) |
Cash Flow Hedging [Member] | Commodity Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion, Net, Total | (18.8) | (26) | 4.1 | (43.4) |
Cash Flow Hedging [Member] | Derivative Income (Expense), Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net, Total | $ (0.4) | $ (1) | $ 0.5 | $ (1.6) |
Derivative Instruments and He32
Derivative Instruments and Hedging Activities - Before Tax Effect of Derivative Instruments in Statement of Operations (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Decrease/increase in oil revenue owing to effective hedging contracts | $ 26.4 | $ (6.1) | $ 60.4 | $ (8.6) |
Decrease/increase in gas revenue owing to effective hedging contracts | $ 4 | $ (3.1) | $ 6.8 | $ (7.7) |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities - Location and Fair Value Amounts of Derivative Instruments Not Qualifying as Hedging Instruments Reported in Balance Sheet (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Commodity Contracts [Member] | Current Assets [Member] | ||
Asset Derivatives | ||
Fair Value of Derivative Instruments | $ 6.8 | $ 12.1 |
Derivative Instruments and He34
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) - Commodity Contracts [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash settlements on Derivative Instruments not Qualifying Hedges | $ 4.1 | $ 7.2 | ||
Change in fair value on Derivative Instruments not Qualifying Hedges | (4.4) | $ (1.5) | (5.3) | $ (1.5) |
Total gains (losses) on Derivative Instruments not Qualifying Hedges | $ (0.3) | $ (1.5) | $ 1.9 | $ (1.5) |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,048,406 | $ 1,041,035 |
Convertible Debt [Member] | 1.75% Senior Notes due 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 273,400 | 266,000 |
Senior Notes [Member] | 7.5% Notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 775,000 | $ 775,000 |
Long-Term Debt - Long-Term De36
Long-Term Debt - Long-Term Debt (Parenthetical) (Detail) | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Convertible Debt [Member] | 1.75% Senior Notes due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.75% | 1.75% | 1.75% |
Senior Notes [Member] | 7.5% Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 7.50% | 7.50% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Aug. 05, 2015USD ($) | May. 01, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 24, 2014USD ($) | Mar. 06, 2012USD ($) | |
Debt Instrument [Line Items] | |||||||||
Liability component of convertible note | $ 1,048,406,000 | $ 1,048,406,000 | $ 1,041,035,000 | ||||||
Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of borrowing base utilization | 1.50% | ||||||||
Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of borrowing base utilization | 2.50% | ||||||||
Letter of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding borrowing under bank credit facility | $ 19,200,000 | $ 19,200,000 | |||||||
Subsequent Event [Member] | Letter of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding borrowing under bank credit facility | $ 19,200,000 | ||||||||
1.75% Senior Convertible Notes due 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
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 | 23.4449 | ||||||||
Principal amount of 2017 convertible notes | $ / shares | $ 1,000 | $ 1,000 | |||||||
Initial conversion price of convertible note 2017 | $ / shares | 42.65 | ||||||||
Closing share price | $ / shares | $ 12.59 | $ 12.59 | |||||||
Payment for call option | $ 70,800,000 | ||||||||
Anti-dilution adjustments for purchases of call option | shares | 7,033,470 | ||||||||
Strike price per share | $ / shares | $ 55.91 | ||||||||
Proceeds from sale of warrants | $ 40,100,000 | ||||||||
Liability component of convertible note | $ 273,400,000 | 273,400,000 | |||||||
Interest expense related to amortization of discount | 3,700,000 | $ 3,500,000 | 7,400,000 | $ 6,800,000 | |||||
Amortization of deferred financing costs | 400,000 | 300,000 | 700,000 | 600,000 | |||||
Interest expense related to contractual interest coupon of convertible notes | 1,300,000 | $ 1,300,000 | $ 2,600,000 | $ 2,600,000 | |||||
Bank Debt [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
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 | ||||||||
Initial bank and availability under facility | 480,800,000 | $ 480,800,000 | $ 500,000,000 | ||||||
Outstanding borrowing under bank credit facility | $ 0 | $ 0 | |||||||
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% | ||||||||
Bank Debt [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Initial bank and availability under facility | 480,800,000 | ||||||||
Outstanding borrowing under bank credit facility | $ 0 |
Asset Retirement Obligations -
Asset Retirement Obligations - Changes in Asset Retirement Obligations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Asset Retirement Obligation Disclosure [Abstract] | ||||
Asset retirement obligations as of the beginning of the period, including current portion | $ 316,400 | |||
Liabilities incurred | 3,500 | |||
Liabilities settled | (35,900) | |||
Accretion expense | $ 6,408 | $ 7,733 | 12,817 | $ 15,288 |
Asset retirement obligations as of the end of the period, including current portion | $ 296,800 | $ 296,800 |
Divestitures - Additional Infor
Divestitures - Additional Information (Detail) $ in Millions | 1 Months Ended |
Jul. 31, 2014USD ($) | |
GOM Conventional Shelf [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash consideration received on sale of interest | $ 177.6 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities (Other assets) | $ 8.8 | $ 8.4 |
Assets, Fair Value, Total | 91.4 | 161.9 |
Liabilities, Fair Value, Total | 0 | 0 |
Derivative Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Fair Value | 82.6 | 153.5 |
Derivative Liabilities, Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities (Other assets) | 8.8 | 8.4 |
Assets, Fair Value, Total | 8.8 | 8.4 |
Liabilities, Fair Value, Total | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Derivative Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, Fair Value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value, Total | 82.6 | 153.5 |
Liabilities, Fair Value, Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Derivative Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Fair Value | 82.6 | 153.5 |
Derivative Liabilities, Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, Fair Value, Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Derivative Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, Fair Value | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
1.75% Senior Notes due 2017 [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of Convertible Notes | $ 264.9 | $ 252.6 |
7.5% Notes due 2022 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of Notes | $ 685.9 | $ 664.6 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | $ 70,800 | $ (9,200) | $ 83,315 | $ (2,100) |
Other comprehensive income (loss) before reclassifications: | ||||
Change in fair value of derivatives | (18,800) | (26,000) | 4,100 | (43,400) |
Foreign currency translations | 1,300 | 800 | (2,300) | 300 |
Income tax effect | 6,900 | 9,400 | (1,300) | 15,700 |
Net of tax | (10,600) | (15,800) | 500 | (27,400) |
Amounts reclassified from accumulated other comprehensive income: | ||||
Net of tax | 19,500 | (6,800) | 43,100 | (11,300) |
Other comprehensive income (loss), net of tax | (30,100) | (9,000) | (42,600) | (16,100) |
Ending balance, net of tax | 40,656 | (18,200) | 40,656 | (18,200) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Amounts reclassified from accumulated other comprehensive income: | ||||
Operating revenue: oil/gas production | 30,400 | (9,200) | 67,200 | (16,300) |
Derivative expense, net | (1,500) | (1,500) | ||
Income tax effect | (10,900) | 3,900 | (24,100) | 6,500 |
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | 77,900 | (8,000) | 86,800 | (1,400) |
Other comprehensive income (loss) before reclassifications: | ||||
Change in fair value of derivatives | (18,800) | (26,000) | 4,100 | (43,400) |
Income tax effect | 6,900 | 9,400 | (1,300) | 15,700 |
Net of tax | (11,900) | (16,600) | 2,800 | (27,700) |
Amounts reclassified from accumulated other comprehensive income: | ||||
Net of tax | 19,500 | (6,800) | 43,100 | (11,300) |
Other comprehensive income (loss), net of tax | (31,400) | (9,800) | (40,300) | (16,400) |
Ending balance, net of tax | 46,500 | (17,800) | 46,500 | (17,800) |
Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Amounts reclassified from accumulated other comprehensive income: | ||||
Operating revenue: oil/gas production | 30,400 | (9,200) | 67,200 | (16,300) |
Derivative expense, net | (1,500) | (1,500) | ||
Income tax effect | (10,900) | 3,900 | (24,100) | 6,500 |
Foreign Currency Items [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | (7,100) | (1,200) | (3,500) | (700) |
Other comprehensive income (loss) before reclassifications: | ||||
Foreign currency translations | 1,300 | 800 | (2,300) | 300 |
Net of tax | 1,300 | 800 | (2,300) | 300 |
Amounts reclassified from accumulated other comprehensive income: | ||||
Other comprehensive income (loss), net of tax | 1,300 | 800 | (2,300) | 300 |
Ending balance, net of tax | $ (5,800) | $ (400) | $ (5,800) | $ (400) |
Investment in Oil and Gas Pro43
Investment in Oil and Gas Properties - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015USD ($)$ / bbl$ / Mcf$ / Bngl | Mar. 31, 2015USD ($)$ / bbl$ / Mcf$ / Bngl | Jun. 30, 2015USD ($)$ / bbl$ / Mcf$ / Bngl | |
Oil and Gas In Process Activities [Line Items] | |||
Write-down of oil and gas properties | $ 224,294 | $ 715,706 | |
Average 12-month oil prices net of differentials | $ / bbl | 68.68 | 78.99 | 68.68 |
Average 12-month gas prices net of differentials | $ / Mcf | 2.47 | 2.96 | 2.47 |
Decrease in written down value of oil and gas properties | $ 28,700 | $ 47,800 | |
Canada [Member] | |||
Oil and Gas In Process Activities [Line Items] | |||
Write-down of oil and gas properties | 45,200 | ||
Oil And Gas [Member] | |||
Oil and Gas In Process Activities [Line Items] | |||
Write-down of oil and gas properties | $ 491,400 | $ 179,100 | |
Natural Gas Liquids (MBbls) [Member] | |||
Oil and Gas In Process Activities [Line Items] | |||
Average 12-month gas prices net of differentials | $ / Bngl | 29.13 | 28.82 | 29.13 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Aug. 02, 2013 | Jun. 30, 2015 |
Loss Contingencies [Line Items] | ||
Legal settlement | $ 18,372,819 | |
Brokerage fee obligations | 1,118,878 | |
Acquisition amount owed | $ 17,253,941 | |
Litigation settlement amount | $ 2,118,878 | |
Minimum potential range contingency loss | 0 | |
Maximum potential range contingency loss | 2,118,878 | |
Second Claim [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation settlement amount | $ 1,000,000 |
Guarantor Financial Statement45
Guarantor Financial Statements - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Current assets: | |||||||
Cash and cash equivalents | $ 141,655 | $ 74,488 | $ 333,886 | $ 331,224 | |||
Restricted cash | 177,647 | ||||||
Accounts receivable | 68,706 | 120,359 | |||||
Fair value of derivative contracts | 74,319 | 139,179 | |||||
Current income tax receivable | 6 | 7,212 | |||||
Inventory | 3,709 | 3,709 | |||||
Other current assets | 10,076 | 8,118 | |||||
Total current assets | 298,471 | 530,712 | |||||
Oil and gas properties, full cost method: | |||||||
Proved | 9,074,425 | 8,817,268 | |||||
Less: accumulated DD&A | (7,846,343) | (6,970,631) | |||||
Net proved oil and gas properties | 1,228,082 | 1,846,637 | |||||
Unevaluated | 529,589 | 567,365 | |||||
Other property and equipment, net | 30,736 | 32,340 | |||||
Fair value of derivative contracts | 8,231 | 14,333 | |||||
Other assets, net | 28,082 | 27,224 | |||||
Total assets | 2,123,191 | 3,018,611 | |||||
Current liabilities: | |||||||
Accounts payable to vendors | 69,423 | 132,629 | |||||
Undistributed oil and gas proceeds | 17,000 | 23,232 | |||||
Accrued interest | 9,027 | 9,022 | |||||
Deferred taxes | [1] | 7,065 | 20,119 | ||||
Asset retirement obligations | 56,176 | 69,400 | |||||
Other current liabilities | 46,780 | 49,505 | |||||
Total current liabilities | 205,471 | 303,907 | |||||
Long-term debt | 1,048,406 | 1,041,035 | |||||
Deferred taxes | [1] | 11,752 | 286,343 | ||||
Asset retirement obligations | 240,613 | 247,009 | |||||
Other long-term liabilities | 32,213 | 38,714 | |||||
Total liabilities | $ 1,538,455 | $ 1,917,008 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Common stock | $ 553 | $ 549 | |||||
Treasury stock | (860) | (860) | |||||
Additional paid-in capital | 1,639,389 | 1,633,307 | |||||
Accumulated deficit | (1,095,002) | (614,708) | |||||
Accumulated other comprehensive income (loss) | 40,656 | $ 70,800 | 83,315 | (18,200) | $ (9,200) | (2,100) | |
Total stockholders' equity | 584,736 | 1,101,603 | |||||
Total liabilities and stockholders' equity | 2,123,191 | 3,018,611 | |||||
Parent [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 116,427 | 72,886 | 244,254 | 246,294 | |||
Restricted cash | 177,647 | ||||||
Accounts receivable | 38,735 | 73,711 | |||||
Current income tax receivable | 6 | 7,212 | |||||
Deferred taxes | [1] | 4,095 | |||||
Inventory | 3,426 | 1,011 | |||||
Other current assets | 10,007 | 8,112 | |||||
Total current assets | 168,601 | 344,674 | |||||
Oil and gas properties, full cost method: | |||||||
Proved | 1,778,480 | 1,689,802 | |||||
Less: accumulated DD&A | (1,724,404) | (970,387) | |||||
Net proved oil and gas properties | 54,076 | 719,415 | |||||
Unevaluated | 300,360 | 289,556 | |||||
Other property and equipment, net | 30,736 | 32,340 | |||||
Other assets, net | 25,149 | 20,857 | |||||
Investment in subsidiary | 1,057,810 | 1,050,546 | |||||
Total assets | 1,636,732 | 2,457,388 | |||||
Current liabilities: | |||||||
Accounts payable to vendors | 56,763 | 74,756 | |||||
Undistributed oil and gas proceeds | 16,093 | 22,158 | |||||
Accrued interest | 9,027 | 9,022 | |||||
Deferred taxes | [1] | 298 | |||||
Other current liabilities | 46,724 | 49,306 | |||||
Total current liabilities | 128,905 | 155,242 | |||||
Long-term debt | 1,048,406 | 1,041,035 | |||||
Deferred taxes | [1] | (161,285) | 117,206 | ||||
Asset retirement obligations | 3,757 | 3,588 | |||||
Other long-term liabilities | 32,213 | 38,714 | |||||
Total liabilities | $ 1,051,996 | $ 1,355,785 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Common stock | $ 553 | $ 549 | |||||
Treasury stock | (860) | (860) | |||||
Additional paid-in capital | 1,639,389 | 1,633,307 | |||||
Accumulated deficit | (1,095,002) | (614,708) | |||||
Accumulated other comprehensive income (loss) | 40,656 | 83,315 | |||||
Total stockholders' equity | 584,736 | 1,101,603 | |||||
Total liabilities and stockholders' equity | 1,636,732 | 2,457,388 | |||||
Guarantor Subsidiaries [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 25,034 | 1,450 | 89,388 | 84,290 | |||
Accounts receivable | 243,846 | 46,615 | |||||
Fair value of derivative contracts | 74,319 | 139,179 | |||||
Inventory | 283 | 2,698 | |||||
Total current assets | 343,482 | 189,942 | |||||
Oil and gas properties, full cost method: | |||||||
Proved | 7,251,498 | 7,127,466 | |||||
Less: accumulated DD&A | (6,077,492) | (6,000,244) | |||||
Net proved oil and gas properties | 1,174,006 | 1,127,222 | |||||
Unevaluated | 227,067 | 241,230 | |||||
Fair value of derivative contracts | 8,231 | 14,333 | |||||
Other assets, net | 1,385 | 1,360 | |||||
Total assets | 1,754,171 | 1,574,087 | |||||
Current liabilities: | |||||||
Accounts payable to vendors | 216,834 | 57,873 | |||||
Undistributed oil and gas proceeds | 907 | 1,074 | |||||
Deferred taxes | [1] | 6,767 | 24,214 | ||||
Asset retirement obligations | 56,176 | 69,400 | |||||
Other current liabilities | 56 | 199 | |||||
Total current liabilities | 280,740 | 152,760 | |||||
Deferred taxes | [1] | 189,303 | 169,137 | ||||
Asset retirement obligations | 236,856 | 243,421 | |||||
Total liabilities | $ 706,899 | $ 565,318 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Additional paid-in capital | $ 1,367,434 | $ 1,362,684 | |||||
Accumulated deficit | (366,607) | (440,699) | |||||
Accumulated other comprehensive income (loss) | 46,445 | 86,784 | |||||
Total stockholders' equity | 1,047,272 | 1,008,769 | |||||
Total liabilities and stockholders' equity | 1,754,171 | 1,574,087 | |||||
Non-Guarantor Subsidiaries [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 194 | 152 | $ 244 | $ 640 | |||
Accounts receivable | 31 | 33 | |||||
Other current assets | 69 | 6 | |||||
Total current assets | 294 | 191 | |||||
Oil and gas properties, full cost method: | |||||||
Proved | 44,447 | ||||||
Less: accumulated DD&A | (44,447) | ||||||
Unevaluated | 2,162 | 36,579 | |||||
Deferred taxes | [1] | 16,266 | |||||
Other assets, net | 1,548 | 5,007 | |||||
Investment in subsidiary | 20,083 | 41,638 | |||||
Total assets | 40,353 | $ 83,415 | |||||
Current liabilities: | |||||||
Accounts payable to vendors | 9,732 | ||||||
Total current liabilities | 9,732 | ||||||
Total liabilities | $ 9,732 | ||||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Additional paid-in capital | $ 100,023 | $ 90,339 | |||||
Accumulated deficit | (57,824) | 12 | |||||
Accumulated other comprehensive income (loss) | (11,578) | (6,936) | |||||
Total stockholders' equity | 30,621 | 83,415 | |||||
Total liabilities and stockholders' equity | 40,353 | 83,415 | |||||
Eliminations [Member] | |||||||
Current assets: | |||||||
Accounts receivable | (213,906) | ||||||
Deferred taxes | [1] | (4,095) | |||||
Total current assets | (213,906) | (4,095) | |||||
Oil and gas properties, full cost method: | |||||||
Deferred taxes | [1] | (16,266) | |||||
Investment in subsidiary | (1,077,893) | (1,092,184) | |||||
Total assets | (1,308,065) | (1,096,279) | |||||
Current liabilities: | |||||||
Accounts payable to vendors | (213,906) | ||||||
Deferred taxes | [1] | (4,095) | |||||
Total current liabilities | (213,906) | (4,095) | |||||
Deferred taxes | [1] | (16,266) | |||||
Total liabilities | $ (230,172) | $ (4,095) | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Additional paid-in capital | $ (1,467,457) | $ (1,453,023) | |||||
Accumulated deficit | 424,431 | 440,687 | |||||
Accumulated other comprehensive income (loss) | (34,867) | (79,848) | |||||
Total stockholders' equity | (1,077,893) | (1,092,184) | |||||
Total liabilities and stockholders' equity | $ (1,308,065) | $ (1,096,279) | |||||
[1] | Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside. |
Guarantor Financial Statement46
Guarantor Financial Statements - Condensed Consolidating Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating revenue: | ||||
Oil production | $ 111,585 | $ 142,393 | $ 219,092 | $ 280,682 |
Natural gas production | 26,907 | 46,667 | 55,244 | 103,029 |
Natural gas liquids production | 11,033 | 15,936 | 23,399 | 43,906 |
Other operational income | 2,050 | 1,792 | 3,047 | |
Derivative income, net | 2,427 | |||
Total operating revenue | 149,525 | 207,046 | 301,954 | 430,664 |
Operating expenses: | ||||
Lease operating expenses | 27,429 | 49,454 | 55,006 | 96,357 |
Transportation, processing and gathering expenses | 19,940 | 14,098 | 37,643 | 28,724 |
Production taxes | 1,827 | 3,257 | 4,342 | 6,319 |
Depreciation, depletion, amortization | 77,951 | 92,835 | 164,373 | 175,481 |
Write-down of oil and gas properties | 224,294 | 715,706 | ||
Accretion expense | 6,408 | 7,733 | 12,817 | 15,288 |
Salaries, general and administrative | 16,418 | 16,637 | 33,425 | 32,966 |
Incentive compensation expense | 1,264 | 3,903 | 2,827 | 7,037 |
Other operational expense | 1,454 | 1,170 | 212 | |
Derivative expense, net | 701 | 2,516 | 3,115 | |
Total operating expenses | 377,686 | 190,433 | 1,027,309 | 365,499 |
Income (loss) from operations | (228,161) | 16,613 | (725,355) | 65,165 |
Other (income) expenses: | ||||
Interest expense | 10,472 | 9,913 | 20,837 | 18,270 |
Interest income | (66) | (193) | (188) | (336) |
Other income | (613) | (722) | (756) | (1,429) |
Other expense | 179 | 179 | ||
Total other (income) expenses | 9,793 | 9,177 | 19,893 | 16,684 |
Income (loss) before taxes | (237,954) | 7,436 | (745,248) | 48,481 |
Provision (benefit) for income taxes: | ||||
Deferred | (85,048) | 2,992 | (264,954) | 18,094 |
Total income taxes | (85,048) | 2,992 | (264,954) | 18,094 |
Net income (loss) | (152,906) | 4,444 | (480,294) | 30,387 |
Comprehensive income (loss) | (183,062) | (4,566) | (522,953) | 14,288 |
Parent [Member] | ||||
Operating revenue: | ||||
Oil production | 6,504 | 5,854 | 10,854 | 12,490 |
Natural gas production | 15,647 | 20,800 | 32,264 | 49,639 |
Natural gas liquids production | 8,077 | 10,219 | 17,956 | 28,473 |
Other operational income | 1,880 | 1,792 | 2,704 | |
Total operating revenue | 30,228 | 38,753 | 62,866 | 93,306 |
Operating expenses: | ||||
Lease operating expenses | 5,111 | 5,046 | 10,087 | 9,059 |
Transportation, processing and gathering expenses | 17,974 | 10,456 | 34,082 | 20,773 |
Production taxes | 1,436 | 1,903 | 3,634 | 3,584 |
Depreciation, depletion, amortization | 44,052 | 30,385 | 86,164 | 58,440 |
Write-down of oil and gas properties | 179,125 | 670,537 | ||
Accretion expense | 91 | 61 | 182 | 129 |
Salaries, general and administrative | 16,398 | 16,639 | 33,399 | 32,964 |
Incentive compensation expense | 1,264 | 3,903 | 2,827 | 7,037 |
Other operational expense | 1,454 | 1,170 | 176 | |
Total operating expenses | 266,905 | 68,393 | 842,082 | 132,162 |
Income (loss) from operations | (236,677) | (29,640) | (779,216) | (38,856) |
Other (income) expenses: | ||||
Interest expense | 10,472 | 9,880 | 20,816 | 18,233 |
Interest income | (46) | (146) | (147) | (225) |
Other income | (187) | (192) | (320) | (373) |
Other expense | 179 | 179 | ||
(Income) loss from investment in subsidiaries | (16,147) | (29,947) | (45,174) | (67,292) |
Total other (income) expenses | (5,908) | (20,226) | (24,825) | (49,478) |
Income (loss) before taxes | (230,769) | (9,414) | (754,391) | 10,622 |
Provision (benefit) for income taxes: | ||||
Deferred | (77,863) | (13,858) | (274,097) | (19,765) |
Total income taxes | (77,863) | (13,858) | (274,097) | (19,765) |
Net income (loss) | (152,906) | 4,444 | (480,294) | 30,387 |
Comprehensive income (loss) | (183,062) | (4,566) | (522,953) | 14,288 |
Guarantor Subsidiaries [Member] | ||||
Operating revenue: | ||||
Oil production | 105,081 | 136,539 | 208,238 | 268,192 |
Natural gas production | 11,260 | 25,867 | 22,980 | 53,390 |
Natural gas liquids production | 2,956 | 5,717 | 5,443 | 15,433 |
Other operational income | 170 | 343 | ||
Derivative income, net | 2,427 | |||
Total operating revenue | 119,297 | 168,293 | 239,088 | 337,358 |
Operating expenses: | ||||
Lease operating expenses | 22,318 | 44,408 | 44,919 | 87,298 |
Transportation, processing and gathering expenses | 1,966 | 3,642 | 3,561 | 7,951 |
Production taxes | 391 | 1,354 | 708 | 2,735 |
Depreciation, depletion, amortization | 33,899 | 62,450 | 78,209 | 117,041 |
Accretion expense | 6,317 | 7,672 | 12,635 | 15,159 |
Salaries, general and administrative | 1 | 2 | ||
Other operational expense | 36 | |||
Derivative expense, net | 701 | 2,516 | 3,115 | |
Total operating expenses | 65,592 | 122,042 | 140,033 | 233,337 |
Income (loss) from operations | 53,705 | 46,251 | 99,055 | 104,021 |
Other (income) expenses: | ||||
Interest expense | 33 | 21 | 37 | |
Interest income | (19) | (41) | (35) | (99) |
Other income | (423) | (530) | (433) | (1,056) |
Total other (income) expenses | (442) | (538) | (447) | (1,118) |
Income (loss) before taxes | 54,147 | 46,789 | 99,502 | 105,139 |
Provision (benefit) for income taxes: | ||||
Deferred | 9,082 | 16,850 | 25,410 | 37,859 |
Total income taxes | 9,082 | 16,850 | 25,410 | 37,859 |
Net income (loss) | 45,065 | 29,939 | 74,092 | 67,280 |
Comprehensive income (loss) | 45,065 | 29,939 | 74,092 | 67,280 |
Non-Guarantor Subsidiaries [Member] | ||||
Operating expenses: | ||||
Write-down of oil and gas properties | 45,169 | 45,169 | ||
Salaries, general and administrative | 20 | (2) | 25 | |
Total operating expenses | 45,189 | (2) | 45,194 | |
Income (loss) from operations | (45,189) | 2 | (45,194) | |
Other (income) expenses: | ||||
Interest income | (1) | (6) | (6) | (12) |
Other income | (3) | (3) | ||
(Income) loss from investment in subsidiaries | 28,918 | (8) | 28,918 | (12) |
Total other (income) expenses | 28,914 | (14) | 28,909 | (24) |
Income (loss) before taxes | (74,103) | 16 | (74,103) | 24 |
Provision (benefit) for income taxes: | ||||
Deferred | (16,267) | (16,267) | ||
Total income taxes | (16,267) | (16,267) | ||
Net income (loss) | (57,836) | 16 | (57,836) | 24 |
Comprehensive income (loss) | (57,836) | 16 | (57,836) | 24 |
Eliminations [Member] | ||||
Other (income) expenses: | ||||
(Income) loss from investment in subsidiaries | (12,771) | 29,955 | 16,256 | 67,304 |
Total other (income) expenses | (12,771) | 29,955 | 16,256 | 67,304 |
Income (loss) before taxes | 12,771 | (29,955) | (16,256) | (67,304) |
Provision (benefit) for income taxes: | ||||
Net income (loss) | 12,771 | (29,955) | (16,256) | (67,304) |
Comprehensive income (loss) | $ 12,771 | $ (29,955) | $ (16,256) | $ (67,304) |
Guarantor Financial Statement47
Guarantor Financial Statements - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ (152,906) | $ 4,444 | $ (480,294) | $ 30,387 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation, depletion and amortization | 77,951 | 92,835 | 164,373 | 175,481 |
Write-down of oil and gas properties | 224,294 | 715,706 | ||
Accretion expense | 6,408 | 7,733 | 12,817 | 15,288 |
Deferred income tax (benefit) provision | (85,048) | 2,992 | (264,954) | 18,094 |
Settlement of asset retirement obligations | (35,923) | (24,915) | ||
Non-cash stock compensation expense | 6,028 | 5,358 | ||
Non-cash derivative expense | 7,931 | 2,697 | ||
Non-cash interest expense | 8,737 | 8,229 | ||
Change in current income taxes | 7,206 | (6) | ||
(Increase) decrease in accounts receivable | 23,047 | (25,524) | ||
Increase in other current assets | (1,959) | (82) | ||
Increase (decrease) in accounts payable | (7,826) | 1,843 | ||
Increase (decrease) in other current liabilities | (8,720) | 50,785 | ||
Other | (504) | (675) | ||
Net cash (used in) provided by operating activities | 145,665 | 256,960 | ||
Cash flows from investing activities: | ||||
Investment in oil and gas properties | (264,355) | (517,904) | ||
Proceeds from sale of oil and gas properties, net of expenses | 10,100 | 51,955 | ||
Investment in fixed and other assets | (727) | (3,896) | ||
Change in restricted funds | 179,475 | (356) | ||
Net cash provided by (used in) investing activities | (75,507) | (470,201) | ||
Cash flows from financing activities: | ||||
Proceeds from bank borrowings | 5,000 | |||
Net proceeds from issuance of common stock | 226,036 | |||
Repayments of bank borrowings | (5,000) | |||
Deferred financing costs | (3,167) | |||
Net payments for share-based compensation | (3,069) | (6,948) | ||
Net cash provided by (used in) financing activities | (3,069) | 215,921 | ||
Effect of exchange rate changes on cash | 78 | (18) | ||
Net change in cash and cash equivalents | 67,167 | 2,662 | ||
Cash and cash equivalents, beginning of period | 74,488 | 331,224 | ||
Cash and cash equivalents, end of period | 141,655 | 333,886 | 141,655 | 333,886 |
Parent [Member] | ||||
Cash flows from operating activities: | ||||
Net income (loss) | (152,906) | 4,444 | (480,294) | 30,387 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation, depletion and amortization | 44,052 | 30,385 | 86,164 | 58,440 |
Write-down of oil and gas properties | 179,125 | 670,537 | ||
Accretion expense | 91 | 61 | 182 | 129 |
Deferred income tax (benefit) provision | (77,863) | (13,858) | (274,097) | (19,765) |
Settlement of asset retirement obligations | (14) | (82) | ||
Non-cash stock compensation expense | 6,028 | 5,358 | ||
Non-cash interest expense | 8,737 | 8,229 | ||
Change in current income taxes | 7,206 | (6) | ||
Non-cash (income) expense from investment in subsidiaries | (45,174) | (67,292) | ||
Change in intercompany receivables/payables | 15,070 | (126,526) | ||
(Increase) decrease in accounts receivable | 16,968 | (42,216) | ||
Increase in other current assets | (1,895) | (82) | ||
(Increase) decrease in inventory | (2,415) | |||
Increase (decrease) in accounts payable | (500) | 2,052 | ||
Increase (decrease) in other current liabilities | (8,409) | 48,987 | ||
Other | (71) | 381 | ||
Net cash (used in) provided by operating activities | (1,977) | (102,006) | ||
Cash flows from investing activities: | ||||
Investment in oil and gas properties | (128,333) | (121,836) | ||
Proceeds from sale of oil and gas properties, net of expenses | 9,777 | |||
Investment in fixed and other assets | (727) | (3,896) | ||
Change in restricted funds | 177,647 | |||
Net cash provided by (used in) investing activities | 48,587 | (115,955) | ||
Cash flows from financing activities: | ||||
Proceeds from bank borrowings | 5,000 | |||
Net proceeds from issuance of common stock | 226,036 | |||
Repayments of bank borrowings | (5,000) | |||
Deferred financing costs | (3,167) | |||
Net payments for share-based compensation | (3,069) | (6,948) | ||
Net cash provided by (used in) financing activities | (3,069) | 215,921 | ||
Net change in cash and cash equivalents | 43,541 | (2,040) | ||
Cash and cash equivalents, beginning of period | 72,886 | 246,294 | ||
Cash and cash equivalents, end of period | 116,427 | 244,254 | 116,427 | 244,254 |
Guarantor Subsidiaries [Member] | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 45,065 | 29,939 | 74,092 | 67,280 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation, depletion and amortization | 33,899 | 62,450 | 78,209 | 117,041 |
Accretion expense | 6,317 | 7,672 | 12,635 | 15,159 |
Deferred income tax (benefit) provision | 9,082 | 16,850 | 25,410 | 37,859 |
Settlement of asset retirement obligations | (35,909) | (24,833) | ||
Non-cash derivative expense | 7,931 | 2,697 | ||
Change in intercompany receivables/payables | (24,802) | 114,841 | ||
(Increase) decrease in accounts receivable | 6,079 | 16,692 | ||
(Increase) decrease in inventory | 2,415 | |||
Increase (decrease) in accounts payable | (7,326) | (209) | ||
Increase (decrease) in other current liabilities | (311) | 1,798 | ||
Other | (433) | (1,056) | ||
Net cash (used in) provided by operating activities | 137,990 | 347,269 | ||
Cash flows from investing activities: | ||||
Investment in oil and gas properties | (124,506) | (384,349) | ||
Proceeds from sale of oil and gas properties, net of expenses | 10,100 | 42,178 | ||
Net cash provided by (used in) investing activities | (114,406) | (342,171) | ||
Cash flows from financing activities: | ||||
Net change in cash and cash equivalents | 23,584 | 5,098 | ||
Cash and cash equivalents, beginning of period | 1,450 | 84,290 | ||
Cash and cash equivalents, end of period | 25,034 | 89,388 | 25,034 | 89,388 |
Non-Guarantor Subsidiaries [Member] | ||||
Cash flows from operating activities: | ||||
Net income (loss) | (57,836) | 16 | (57,836) | 24 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Write-down of oil and gas properties | 45,169 | 45,169 | ||
Deferred income tax (benefit) provision | (16,267) | (16,267) | ||
Non-cash (income) expense from investment in subsidiaries | 28,918 | (12) | ||
Change in intercompany receivables/payables | 9,732 | 11,685 | ||
Increase in other current assets | (64) | |||
Net cash (used in) provided by operating activities | 9,652 | 11,697 | ||
Cash flows from investing activities: | ||||
Investment in oil and gas properties | (11,516) | (11,719) | ||
Change in restricted funds | 1,828 | (356) | ||
Investment in subsidiaries | (9,684) | (12,176) | ||
Net cash provided by (used in) investing activities | (19,372) | (24,251) | ||
Cash flows from financing activities: | ||||
Equity proceeds from parent | 9,684 | 12,176 | ||
Net cash provided by (used in) financing activities | 9,684 | 12,176 | ||
Effect of exchange rate changes on cash | 78 | (18) | ||
Net change in cash and cash equivalents | 42 | (396) | ||
Cash and cash equivalents, beginning of period | 152 | 640 | ||
Cash and cash equivalents, end of period | 194 | 244 | 194 | 244 |
Eliminations [Member] | ||||
Cash flows from operating activities: | ||||
Net income (loss) | $ 12,771 | $ (29,955) | (16,256) | (67,304) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Non-cash (income) expense from investment in subsidiaries | 16,256 | 67,304 | ||
Cash flows from investing activities: | ||||
Investment in subsidiaries | 9,684 | 12,176 | ||
Net cash provided by (used in) investing activities | 9,684 | 12,176 | ||
Cash flows from financing activities: | ||||
Equity proceeds from parent | (9,684) | (12,176) | ||
Net cash provided by (used in) financing activities | $ (9,684) | $ (12,176) |