Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CALLON PETROLEUM CO | |
Entity Central Index Key | 928,022 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 66,287,148 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 1,922 | $ 968 |
Accounts receivable | 39,385 | 30,198 |
Fair value of derivatives | 16,763 | 27,850 |
Other current assets | 1,410 | 1,441 |
Total current assets | 59,480 | 60,457 |
Oil and natural gas properties, full-cost accounting method: | ||
Evaluated properties | 2,251,993 | 2,077,985 |
Less accumulated depreciation, depletion and amortization | (1,618,027) | (1,478,355) |
Net oil and natural gas properties | 633,966 | 599,630 |
Unevaluated properties | 141,581 | 142,525 |
Total oil and natural gas properties | 775,547 | 742,155 |
Other property and equipment, net | 7,905 | 7,118 |
Restricted investments | 3,305 | 3,810 |
Deferred tax asset | 44,688 | |
Deferred financing costs | 15,858 | 18,200 |
Fair value of derivatives | 2,203 | |
Other assets, net | 426 | 342 |
Total assets | 864,724 | 876,770 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 76,162 | 76,753 |
Accrued interest | 6,066 | 5,993 |
Cash-settled restricted stock unit awards | 8,025 | 3,856 |
Asset retirement obligations | 827 | 4,747 |
Deferred tax liability | 6,214 | |
Fair value of derivatives | 1,249 | |
Total current liabilities | 91,080 | 98,812 |
Senior secured revolving credit facility | 99,000 | 35,000 |
Secured second lien term loan | 300,000 | 300,000 |
Asset retirement obligations | 3,856 | 1,927 |
Cash-settled restricted stock unit awards | 3,487 | 7,175 |
Other long-term liabilities | 220 | 121 |
Total liabilities | 497,643 | 443,035 |
Stockholders' equity: | ||
Preferred stock, series A cumulative, $0.01 par value and $50.00 liquidation preference, 2,500,000 shares authorized: 1,578,948 and 1,578,948 shares outstanding, respectively | 16 | 16 |
Common stock, $0.01 par value, 110,000,000 shares authorized; 66,279,074 and 55,225,288 shares outstanding, respectively | 663 | 552 |
Capital in excess of par value | 592,287 | 526,162 |
Accumulated deficit | (225,885) | (92,995) |
Total stockholders' equity | 367,081 | 433,735 |
Total liabilities and stockholders' equity | $ 864,724 | $ 876,770 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares outstanding | 66,279,074 | 55,225,288 |
Series A Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference (in dollars per share) | $ 50 | $ 50 |
Preferred stock, shares authorized | 2,500,000 | 2,500,000 |
Preferred stock, shares outstanding | 1,578,948 | 1,578,948 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating revenues: | ||||
Oil sales | $ 30,582 | $ 36,346 | $ 94,584 | $ 104,965 |
Natural gas sales | 3,734 | 3,311 | 9,365 | 8,479 |
Total operating revenues | 34,316 | 39,657 | 103,949 | 113,444 |
Operating expenses: | ||||
Lease operating expenses | 7,194 | 6,270 | 20,728 | 14,863 |
Production taxes | 2,583 | 2,247 | 7,800 | 6,429 |
Depreciation, depletion and amortization | 16,704 | 16,115 | 52,395 | 38,635 |
General and administrative | 4,302 | 3,261 | 22,167 | 23,707 |
Accretion expense | 142 | 202 | 485 | 603 |
Write-down of oil and natural gas properties | 87,301 | 87,301 | ||
Rig termination fee | 3,641 | |||
Gain on sale of other property and equipment | (1,080) | |||
Total operating expenses | 118,226 | 28,095 | 194,517 | 83,157 |
Income (loss) from operations | (83,910) | 11,562 | (90,568) | 30,287 |
Other income: | ||||
Interest expense | 5,603 | 2,205 | 15,567 | 5,007 |
Gain on early extinguishment of debt | (3,205) | |||
Gain on derivative contracts | (23,283) | (9,944) | (17,463) | (2,746) |
Other income | (92) | (61) | (177) | (203) |
Total other income | (17,772) | (7,800) | (2,073) | (1,147) |
Income (loss) before income taxes | (66,138) | 19,362 | (88,495) | 31,434 |
Income tax expense | 45,667 | 7,161 | 38,474 | 12,630 |
Net income (loss) | (111,805) | 12,201 | (126,969) | 18,804 |
Preferred stock dividends | (1,974) | (1,974) | (5,921) | (5,921) |
Income (loss) available to common stockholders | $ (113,779) | $ 10,227 | $ (132,890) | $ 12,883 |
Income (loss) per common share: | ||||
Basic | $ (1.72) | $ 0.24 | $ (2.10) | $ 0.31 |
Diluted | $ (1.72) | $ 0.23 | $ (2.10) | $ 0.30 |
Shares used in computing income (loss) per common share: | ||||
Basic | 66,277 | 43,187 | 63,265 | 41,370 |
Diluted | 66,277 | 44,211 | 63,265 | 42,510 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (126,969) | $ 18,804 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation, depletion and amortization | 52,583 | 39,493 |
Write-down of oil and natural gas properties | 87,301 | |
Accretion expense | 485 | 603 |
Amortization of non-cash debt related items | 2,342 | 494 |
Amortization of deferred credit | (433) | |
Deferred income tax expense | 38,474 | 12,630 |
Net loss (gain) on derivatives, net of settlements | 7,635 | (5,728) |
Gain on sale of other property and equipment | (1,080) | |
Non-cash gain on early debt extinguishment | (3,205) | |
Non-cash (benefit) expense related to equity share-based awards | (300) | 432 |
Change in the fair value of liability share-based awards | 4,759 | 6,571 |
Payments to settle asset retirement obligations | (3,047) | (3,283) |
Changes in current assets and liabilities: | ||
Accounts receivable | (7,278) | (8,016) |
Other current assets | 31 | 802 |
Current liabilities | 6,455 | 3,449 |
Payments to settle vested liability share-based awards related to early retirements | (3,538) | (1,417) |
Payments to settle vested liability share-based awards | (3,925) | (2,052) |
Change in other long-term liabilities | 100 | |
Change in other assets, net | 421 | (367) |
Net cash provided by operating activities | 55,529 | 57,697 |
Cash flows from investing activities: | ||
Capital expenditures | (178,548) | (188,793) |
Deposit on acquisition | (10,629) | |
Proceeds from sales of mineral interests and equipment | 348 | 1,991 |
Net cash used in investing activities | (178,200) | (197,431) |
Cash flows from financing activities: | ||
Borrowings on credit facility | 130,000 | 200,000 |
Payments on credit facility | (66,000) | (169,610) |
Payment of deferred financing costs | (3,068) | |
Issuance of common stock | 65,546 | 122,514 |
Payment of preferred stock dividends | (5,921) | (5,921) |
Net cash provided by financing activities | 123,625 | 143,915 |
Net change in cash and cash equivalents | 954 | 4,181 |
Balance, beginning of period | 968 | 3,012 |
Balance, end of period | $ 1,922 | $ 7,193 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Description of Business and Basis of Presentation [Abstract] | |
Description of Business and Basis of Presentation | Note 1 - Description of Business and Basis of Presentation Description of business Callon Petroleum Company is an independent oil and natural gas company established in 1950. The Company was incorporated under the laws of the state of Delaware in 1994 and succeeded to the business of a publicly traded limited partnership, a joint venture with a consortium of European investors and an independent energy company partially owned by a member of current management. As used herein, the “Company,” “Callon,” “we,” “us,” and “our” refer to Callon Petroleum Company and its predecessors and subsidiaries unless the context requires otherwise. Callon is focused on the acquisition, development, exploration and exploitation of unconventional, onshore, oil and natural gas reserves in the Permian Basin in West Texas, and more specifically, the Midland Basin. The Company’s operations to date have been predominantly focused on horizontal drilling of several prospective intervals, including multiple levels of the Wolfcamp formation and, more recently, the Lower Spraberry shale. Callon has assembled a multi-year inventory of potential horizontal well locations and intends to add to this inventory through delineation drilling of emerging zones on our existing acreage and acquisition of additional locations through acreage purchases, joint ventures and asset swaps. Basis of presentation Unless otherwise indicated, all dollar amounts included within the Footnotes to the Financial Statements are presented in thousands, except for per share and per unit data. The interim consolidated financial statements of the Company have been prepared in accordance with (1) GAAP, (2) the SEC’s instructions to Quarterly Report on Form 10-Q and (3) Rule 10-01 of Regulation S-X, and include the accounts of Callon Petroleum Company, and its subsidiary, Callon Petroleum Operating Company (“CPOC”). CPOC also has subsidiaries, namely Callon Offshore Production, Inc. and Mississippi Marketing, Inc. These interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ended December 31, 2015 . In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, including normal recurring adjustments and all intercompany account and transaction eliminations, necessary to present fairly the Company’s financial position, the results of its operations and its cash flows for the periods indicated. Certain prior year amounts have been reclassified to conform to current year presentation. Recently issued accounting policies In April 2015, the Financial Accounting Standards Board issued accounting standards update No. 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). The standard requires that the costs for issuing debt should appear on the balance sheet as direct reduction from the debt’s carrying value. The guidance in ASU 2015-03 is effective for public entities for annual reporting periods beginning after December 15, 2015, including interim periods therein. Early adoption is permitted and is to be applied on retrospective basis. The Company is currently evaluating the method of adoption and impact this standard will have on its financial statements and related disclosures. In August 2015, the FASB issued ASU No. 2015-15, Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”). ASU 2015-15 updates the accounting guidance included in ASU 2015-03 a s a result of the June 18, 2015, Emerging Issues Task Force meeting, in which the SEC stated that the SEC staff would not object to an entity deferring and presenting costs related to revolving debt arrangements as an asset. The Company is currently evaluating the method of adoption and impact this standard will have on its financial statements and related disclosures. |
Oil and Natural Gas Properties
Oil and Natural Gas Properties | 9 Months Ended |
Sep. 30, 2015 | |
Oil and Natural Gas Properties [Abstract] | |
Oil and Natural Gas Properties | N ote 2 - Oil and Natural Gas Properties The Company uses the full cost method of accounting for its exploration and development activities. Under this method of accounting, the cost of both successful and unsuccessful exploration and development activities are capitalized as oil and gas properties. Such amounts include the cost of drilling and equipping productive wells, dry hole costs, lease acquisition costs, delay rentals, interest capitalized on unevaluated leases, other costs related to exploration and development activities, and site restoration, dismantlement and abandonment costs capitalized in accordance with asset retirement obligation accounting guidance. Costs capitalized also include any internal costs that are directly related to exploration and development activities, including salaries and benefits, but do not include any costs related to production, general corporate overhead or similar activities. Under full cost accounting rules, the Company reviews the carrying value of its proved oil and natural gas properties each quarter. Under these rules, capitalized costs of oil and natural gas properties, net of accumulated depreciation, depletion and amortization and deferred income taxes, may not exceed the present value of estimated future net cash flows from proved oil and natural gas reserves, discounted at 10%, plus the lower of cost or fair value of unevaluated properties, net of related tax effects (the full cost ceiling). These rules generally require pricing based on the preceding 12-months’ average oil and natural gas prices based on closing prices on the first day of each month and require a write-down if the net capitalized costs of proved oil and natural gas properties exceeds the full cost ceiling. At September 30, 2015 , the prices used in determining the estimated future net cash flows from proved reserves were $ 54.48 per barrel of oil and $ 3.53 per Mcf of natural gas. For the period ended September 30, 2015 , the Company recognized a write-down of oil and natural gas properties of $ 87,301 as a result of the ceiling test limitation. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Acquisitions [Abstract] | |
Acquisitions | No te 3 - Acquisitions On October 8, 2014, the Company completed the acquisition of certain undeveloped acreage and producing oil and gas properties located in Midland, Andrews, Ector and Martin Counties, Texas (the “Central Midland Basin Acquisition”) for an aggregate cash purchase price of $210,205 . The Company assumed operatorship of the properties on November 1, 2014, and acquired a 62% working interest ( 46.5% net revenue interest) in the Central Midland Basin Acquisition. The aggregate cash purchase price was funded with a combination of the net proceeds from an equity offering of $122,450 and a portion of the net proceeds from borrowings under a secured second lien term loan. The Central Midland Basin Acquisition was accounted for under the acquisition method of accounting, which involves determining the fair value of the assets acquired and liabilities assumed. The following purchase price allocation is based on management’s estimates of the fair value of the assets acquired and liabilities assumed. The following table summarizes the acquisition date fair values of the net assets acquired: Oil and natural gas properties $ Unevaluated oil and natural gas properties Asset retirement obligations Net assets acquired $ The following unaudited summary pro forma financial information for the three and nine months ended September 30, 2014 has been presented for illustrative purposes only and does not purport to represent what the Company’s results of operations would have been if the Central Midland Basin Acquisition had occurred as presented, or to project the Company’s results of operations for any future periods. The pro forma financial information was prepared assuming the Central Midland Basin Acquisition occurred as of January 1, 2013. The pro forma adjustments are based on available information and certain assumptions that management believes are reasonable, including revenue, lease operating expenses, production taxes, depreciation, depletion and amortization expense, accretion expense, interest expense and capitalized interest. Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Revenues $ $ Income from operations Income available to common stockholders Net income per common share: Basic $ $ Diluted $ $ |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4 - Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: (share amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income (loss) $ $ $ $ Preferred stock dividends Income (loss) available to common stockholders $ $ $ $ Weighted average shares outstanding Dilutive impact of restricted stock — — Weighted average shares outstanding for diluted loss per share Basic income (loss) per share $ $ $ $ Diluted income (loss) per share $ $ $ $ Stock options (a) Restricted stock (a) — — (a) Shares excluded from the diluted earnings per share calculation because their effect would be anti-dilutive. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2015 | |
Borrowings [Abstract] | |
Borrowings | Note 5 - Borrowings The Company’s borrowings consisted of the following at: September 30, 2015 December 31, 2014 Principal components: Senior secured revolving credit facility $ $ Secured second lien term loan Total carrying value of borrowings $ $ Senior secured revolving credit facility (the “Credit Facility”) On March 11, 2014, the Company entered into the Fifth Amended and Restated Credit Agreement to the Credit Facility with a maturity date of March 11, 2019 . JPMorgan Chase Bank, N.A. is Administrative Agent, and participating lenders include Regions Bank, Citibank, N.A., Capital One, N.A., KeyBank, N.A., Whitney Bank, IberiaBank, N.A., OneWest Bank, N.A., SunTrust Bank and Royal Bank of Canada. The total notional amount available under the Credit Facility is $500,000 . Amounts borrowed under the Credit Facility may not exceed the borrowing base, which is generally reviewed on a semi-annual basis. As of September 30, 2015 , the Credit Facility’s borrowing base was $250,000 . The Credit Facility is secured by first preferred mortgages covering the Company’s major producing properties. Subsequent to September 30, 2015 the Credit Facility’s borrowing base was increased to $ 300,000 following the lenders’ regularly scheduled semi-annual redetermination process. As of September 30, 2015 , the balance outstanding on the Credit Facility was $99,000 with a weighted-average interest rate of 2.21% , calculated as the LIBOR plus a tiered rate ranging from 1.75% to 2.75% , which is determined based on utilization of the facility. In addition, the Credit Facility carries a commitment fee of 0.5% per annum, payable quarterly, on the unused portion of the borrowing base. Secured second lien term loan (the “Term Loan”) On October 8, 2014, the Company entered into the Term Loan with an aggregate amount of up to $300,000 and a maturity date of October 8, 2021 . The Royal Bank of Canada is Administrative Agent, and participants include several institutional lenders. The Term Loan may be prepaid at the Company’s option, subject to a prepayment premium. The prepayment amount (i) is 102% if the prepayment event occurs prior to October 8, 2016, (ii) is 101% if the prepayment event occurs on or after October 8, 2016 but before October 8, 2017, and (ii i ) is 100% for prepayments made on or after October 8, 2017. The Term Loan is secured by junior liens on properties mortgaged under the Credit Facility, subject to an intercreditor agreement. As of September 30, 2015 , the balance outstanding on the Term Loan was $300,000 with an interest rate of 8.5% , calculated at a rate of LIBOR (subject to a floor rate of 1.0% ) plus 7.5% per annum. The Company can elect a LIBOR rate based on various tenors, and is currently incurring interest based on an underlying three-month LIBOR rate, which was last elected in October 2015. Restrictive covenants The Company’s Credit Facility and Term Loan contain various covenants including restrictions on additional indebtedness, payment of cash dividends and maintenance of certain financial ratios. The Company was in compliance with these covenants at September 30, 2015 . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | Note 6 - Derivative Instruments and Hedging Activities Objectives and strategies for using derivative instruments The Company is exposed to fluctuations in oil and natural gas prices received for its production. Consequently, the Company believes it is prudent to manage the variability in cash flows on a portion of its oil and natural gas production. The Company utilizes a mix of collars, swaps, puts, calls and similar derivative financial instruments to manage fluctuations in cash flows resulting from changes in commodity prices. The Company does not use these instruments for speculative or trading purposes. Counterparty risk and offsetting The use of derivative instruments exposes the Company to the risk that a counterparty will be unable to meet its commitments. While the Company monitors counterparty creditworthiness on an ongoing basis, it cannot predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, the Company may be limited in its ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, the Company may not realize the benefit of some of its derivative instruments under lower commodity prices while continuing to be obligated under higher commodity price contracts subject to any right of offset under the agreements. Counterparty credit risk is considered when determining the fair value of a derivative instrument; see Note 7 for additional information regarding fair value. The Company executes commodity derivative contracts under master agreements that have netting provisions that provide for offsetting assets against liabilities. In general, if a party to a derivative transaction incurs an event of default, as defined in the applicable agreement, the other party will have the right to demand the posting of collateral, demand a cash payment transfer or terminate the arrangement. Financial statement presentation and settlements Settlements of the Company’s derivative instruments are based on the difference between the contract price or prices specified in the derivative instrument and a benchmark price, such as the NYMEX price. To determine the fair value of the Company’s derivative instruments, the Company utilizes present value methods that include assumptions about commodity prices based on those observed in underlying markets. See Note 7 for additional information regarding fair value. Derivatives not designated as hedging instruments The Company records its derivative contracts at fair value in the consolidated balance sheet and records changes in fair value as a gain or loss on derivative contracts in the consolidated statement of operations. Cash settlements are also recorded as gain or loss on derivative contracts in the consolidated statement of operations. The following table reflects the fair value of the Company’s derivative instruments for the periods presented: Balance Sheet Presentation Asset Fair Value Liability Fair Value Net Derivative Fair Value Commodity Classification Line Description 09/30/2015 12/31/2014 09/30/2015 12/31/2014 09/30/2015 12/31/2014 Natural gas Current Fair value of derivatives $ $ $ — $ $ $ Oil Current Fair value of derivatives — Oil Non-current Fair value of derivatives — — — — Totals $ $ $ — $ $ $ As previously discussed, the Company’s derivative contracts are subject to master netting arrangements. The Company’s policy is to present the fair value of derivative contracts on a net basis in the consolidated balance sheet. The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated: September 30, 2015 Presented without As Presented with Effects of Netting Effects of Netting Effects of Netting Current assets: Fair value of derivatives $ $ $ Long-term assets: Fair value of derivatives — Current liabilities: Fair value of derivatives $ $ $ — December 31, 2014 Presented without As Presented with Effects of Netting Effects of Netting Effects of Netting Current assets: Fair value of derivatives $ $ — $ Current liabilities: Fair value of derivatives $ $ — $ For the periods indicated, the Company recorded the following related to its derivatives in the consolidated statement of operations as gain or loss on derivative contracts: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Oil derivatives Net gain (loss) on settlements $ $ $ $ Net gain (loss) on fair value adjustments Total gain (loss) $ $ $ $ Natural gas derivatives Net gain (loss) on settlements $ $ $ $ Net gain (loss) on fair value adjustments Total gain (loss) $ $ $ $ Total gain on derivative contracts $ $ $ $ Derivative positions Listed in the tables below are the outstanding oil and natural gas derivative contracts as of September 30, 2015 : For the Three Months Ended December 31, March 31, June 30, September 30, December 31, Oil contracts 2015 2016 2016 2016 2016 Swap contracts (NYMEX): Total volume (MBbls) Weighted average price per Bbl $ $ $ $ $ Swap contracts (Midland basis differentials): Volume (MBbls) Weighted average price per Bbl $ $ $ $ $ Collar contracts combined with short puts (WTI, three-way collar): Volume (MBbls) — Weighted average price per Bbl Ceiling (short call) $ — $ $ $ $ Floor (long put) $ — $ $ $ $ Short put $ — $ $ $ $ For the Three Months Ended December 31, March 31, June 30, September 30, December 31, Natural gas contracts 2015 2016 2016 2016 2016 Collar contracts combined with short puts (three-way collar): Volume (BBtu) — — — — Weighted average price per MMBtu Ceiling (short call) $ $ — $ — $ — $ — Floor (long put) $ $ — $ — $ — $ — Short put $ $ — $ — $ — $ — Swap contracts: Total volume (BBtu) — — — — Weighted average price per MMBtu $ $ — $ — $ — $ — Short call contracts: Short call volume (BBtu) — — — — Short call price per MMBtu $ $ — $ — $ — $ — |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 7 - Fair Value Measurements The fair value hierarchy included in GAAP gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable, and these valuations have the lowest priority. Fair Value of Financial Instruments Cash, cash equivalents, and restricted investments. The carrying amounts for these instruments approximate fair value due to the short-term nature or maturity of the instruments. Debt. The Company’s debt is recorded at the carrying amount in the consolidated balance sheet. The carrying amount of floating-rate debt approximated fair value because the interest rates were variable and reflective of market rates. Assets and liabilities measured at fair value on a recurring basis Certain assets and liabilities are reported at fair value on a recurring basis in the consolidated balance sheet. The following methods and assumptions were used to estimate fair value: Commodity derivative instruments. The fair value of commodity derivative instruments is derived using an income approach valuation model that utilizes market-corroborated inputs that are observable over the term of the derivative contract. The Company’s fair value calculations also incorporate an estimate of the counterparties’ default risk for derivative assets and an estimate of the Company’s default risk for derivative liabilities. The Company believes that the majority of the inputs used to calculate the commodity derivative instruments fall within Level 2 of the fair value hierarchy based on the wide availability of quoted market prices for similar commodity derivative contracts. See Note 6 for additional information regarding the Company’s derivative instruments. The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis : Balance Sheet Presentation as of September 30, 2015 Classification Level 1 Level 2 Level 3 Total Fair value of derivatives Current assets $ — $ $ — $ Other assets, net Long-term assets — — Total net assets $ — $ $ — $ Balance Sheet Presentation as of December 31, 2014 Classification Level 1 Level 2 Level 3 Total Fair value of derivatives Current assets $ — $ $ — $ Fair value of derivatives Current liabilities — — Total net assets $ — $ $ — $ |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8 - Income Taxes The Company typically provides for income taxes at a statutory rate of 35 % adjusted for permanent differences expected to be realized, which primarily relate to non-deductible executive compensation expenses and state income taxes. As a result of the write-down of oil and natural gas properties discussed in Note 2 , the Company has incurred a cumulative three year loss. Because of the impact the cumulative loss has on the determination of the recoverability of deferred tax assets through future earnings, the Company assessed the ability to realize its deferred tax assets based on the future reversals of existing deferred tax liabilities. Accordingly, the Company established a valuation allowance for a portion of the deferred tax asset. The valuation allowance was $ 68,818 as of September 30, 2015 . |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligations [Abstract] | |
Asset Retirement Obligations | Note 9 - Asset Retirement Obligations The table below summarizes the Company’s asset retirement obligations activity for the nine months ended September 30, 2015 : Asset retirement obligations at January 1, 2015 $ Accretion expense Liabilities incurred Liabilities settled Revisions to estimate Asset retirement obligations at end of period Less: Current asset retirement obligations Long-term asset retirement obligations at September 30, 2015 $ Certain of the Company’s operating agreements require that assets be restricted for abandonment obligations. Amounts recorded in the consolidated balance sheet at September 30, 2015 as long-term restricted investments were $3,305 . These assets, which primarily include short-term U.S. Government securities, are held in abandonment trusts dedicated to pay future abandonment costs for several of the Company’s oil and natural gas properties. |
Equity Transactions
Equity Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Equity Transactions [Abstract] | |
Equity Transactions | Note 10 - Equity Transactions 10% Series A Cumulative Preferred Stock (“Preferred Stock”) Holders of the Company’s Preferred Stock are entitled to receive, when, as and if declared by our Board of Directors, out of funds legally available for the payment of dividends, cumulative cash dividends at a rate of 10.0% per annum of the $50.00 liquidation preference per share (equivalent to $5.00 per annum per share). Dividends are payable quarterly in arrears on the last day of each March, June, September and December when, as and if declared by our Board of Directors. Preferred Stock dividends were $1,974 and $5,921 for the three and nine months ended September 30, 2015 and 2014 , respectively. The Preferred Stock has no stated maturity and is not subject to any sinking fund or other mandatory redemption. On or after May 30, 2018, the Company may, at its option, redeem the Preferred Stock, in whole or in part, by paying $50.00 per share in cash, plus any accrued and unpaid dividends to the redemption date. Following a change of control, as defined in the prospectus supplement, the Company will have the option to redeem the Preferred Stock, in whole but not in part for $50.00 per share in cash, plus accrued and unpaid dividends (whether or not declared), to the redemption date. If the Company does not exercise its option to redeem the Preferred Stock upon a change of control, the holders of the Preferred Stock have the option to convert the Preferred Stock into a number of shares of the Company’s common stock based on the value of the common stock on the date of the change of control as determined under the certificate of designations for the Preferred Stock. If the change of control occurred on September 30, 2015 , and the Company did not exercise its right to redeem the Preferred Stock, using the closing price of $ 7.29 as the value of a share of common stock, each share of Preferred Stock would be convertible into approximately 6.9 shares of common stock. If the Company exercises its redemption rights relating to shares of Preferred Stock, the holders of Preferred Stock will not have the conversion right described above. Common Stock On March 13, 2015, the Company completed an underwritten public offering of 9,000,000 shares of its common stock at $6.55 per share, before underwriting discounts, and the exercise in full by the underwriters of their option to purchase 1,350,000 additional shares of common stock at $6.55 per share, before underwriting discounts. The Company received net proceeds of approximately $65,546 , after the underwriting discounts and estimated offering costs. |
Other
Other | 9 Months Ended |
Sep. 30, 2015 | |
Other [Abstract] | |
Other | Note 11 - Other Operating leases As of September 30, 2015 , the Company had contracts for two horizontal drilling rigs (the “Cactus 1 Rig” and “Cactus 2 Rig”). The Cactus 1 Rig was initially contracted for a term of two years in April 2012. The Cactus 2 Rig was initially contracted for a term of two years in April 2014. The Cactus 2 Rig replaced a previously contracted horizontal drilling rig, which was cancelled in March 2014. In March 2015, the Company extended the terms of its Cactus 1 Rig and Cactus 2 Rig to end in July 2018 and August 2018, respectively. The rig lease agreements include early termination provisions that obligate the Company to reduced minimum rentals pursuant to a “standby” dayrate for the term of the agreement. These payments would be reduced assuming the lessor is able to re-charter the rig and staffing personnel to another lessee. In March 2015, the Company decided to terminate its one-year contract for a vertical rig (effective April 2015) and is required to pay approximately $3,641 in reduced rental payments over the remainder of the lease term ending November 2015, unless the lessor is able to re-charter the rig to another lessee. This amount was recognized as rig termination fee on the consolidated statements of operations for the three and nine months ended September 30, 2015 . As of September 30, 2015 , the Company has paid $2,800 of the estimated $3,641 in reduced rental payments. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Acquisitions [Abstract] | |
Fair Value of Net Assets Acquired | Oil and natural gas properties $ Unevaluated oil and natural gas properties Asset retirement obligations Net assets acquired $ |
Unaudited Summary Pro Forma Financial Information | Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Revenues $ $ Income from operations Income available to common stockholders Net income per common share: Basic $ $ Diluted $ $ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share, Basic and Diluted | (share amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income (loss) $ $ $ $ Preferred stock dividends Income (loss) available to common stockholders $ $ $ $ Weighted average shares outstanding Dilutive impact of restricted stock — — Weighted average shares outstanding for diluted loss per share Basic income (loss) per share $ $ $ $ Diluted income (loss) per share $ $ $ $ Stock options (a) Restricted stock (a) — — Shares excluded from the diluted earnings per share calculation because their effect would be anti-dilutive. |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Borrowings [Abstract] | |
Schedule of Borrowings | September 30, 2015 December 31, 2014 Principal components: Senior secured revolving credit facility $ $ Secured second lien term loan Total carrying value of borrowings $ $ |
Derivative Instruments and He20
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Balance Sheet Presentation Asset Fair Value Liability Fair Value Net Derivative Fair Value Commodity Classification Line Description 09/30/2015 12/31/2014 09/30/2015 12/31/2014 09/30/2015 12/31/2014 Natural gas Current Fair value of derivatives $ $ $ — $ $ $ Oil Current Fair value of derivatives — Oil Non-current Fair value of derivatives — — — — Totals $ $ $ — $ $ $ As previously discussed, the Company’s derivative contracts are subject to master netting arrangements. The Company’s policy is to present the fair value of derivative contracts on a net basis in the consolidated balance sheet. The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated: September 30, 2015 Presented without As Presented with Effects of Netting Effects of Netting Effects of Netting Current assets: Fair value of derivatives $ $ $ Long-term assets: Fair value of derivatives — Current liabilities: Fair value of derivatives $ $ $ — December 31, 2014 Presented without As Presented with Effects of Netting Effects of Netting Effects of Netting Current assets: Fair value of derivatives $ $ — $ Current liabilities: Fair value of derivatives $ $ — $ |
Schedule of Gain or Loss on Derivative Contracts | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Oil derivatives Net gain (loss) on settlements $ $ $ $ Net gain (loss) on fair value adjustments Total gain (loss) $ $ $ $ Natural gas derivatives Net gain (loss) on settlements $ $ $ $ Net gain (loss) on fair value adjustments Total gain (loss) $ $ $ $ Total gain on derivative contracts $ $ $ $ |
Schedule of Outstanding Oil and Natural Gas Derivative Contracts | For the Three Months Ended December 31, March 31, June 30, September 30, December 31, Oil contracts 2015 2016 2016 2016 2016 Swap contracts (NYMEX): Total volume (MBbls) Weighted average price per Bbl $ $ $ $ $ Swap contracts (Midland basis differentials): Volume (MBbls) Weighted average price per Bbl $ $ $ $ $ Collar contracts combined with short puts (WTI, three-way collar): Volume (MBbls) — Weighted average price per Bbl Ceiling (short call) $ — $ $ $ $ Floor (long put) $ — $ $ $ $ Short put $ — $ $ $ $ For the Three Months Ended December 31, March 31, June 30, September 30, December 31, Natural gas contracts 2015 2016 2016 2016 2016 Collar contracts combined with short puts (three-way collar): Volume (BBtu) — — — — Weighted average price per MMBtu Ceiling (short call) $ $ — $ — $ — $ — Floor (long put) $ $ — $ — $ — $ — Short put $ $ — $ — $ — $ — Swap contracts: Total volume (BBtu) — — — — Weighted average price per MMBtu $ $ — $ — $ — $ — Short call contracts: Short call volume (BBtu) — — — — Short call price per MMBtu $ $ — $ — $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | Balance Sheet Presentation as of September 30, 2015 Classification Level 1 Level 2 Level 3 Total Fair value of derivatives Current assets $ — $ $ — $ Other assets, net Long-term assets — — Total net assets $ — $ $ — $ Balance Sheet Presentation as of December 31, 2014 Classification Level 1 Level 2 Level 3 Total Fair value of derivatives Current assets $ — $ $ — $ Fair value of derivatives Current liabilities — — Total net assets $ — $ $ — $ |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligations [Abstract] | |
Schedule of Change in Asset Retirement Obligation | Asset retirement obligations at January 1, 2015 $ Accretion expense Liabilities incurred Liabilities settled Revisions to estimate Asset retirement obligations at end of period Less: Current asset retirement obligations Long-term asset retirement obligations at September 30, 2015 $ |
Oil and Natural Gas Properties
Oil and Natural Gas Properties (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)$ / Mcfe$ / bbl | |
Write-down of oil and natural gas properties | $ | $ 87,301 | $ 87,301 |
Crude Oil [Member] | ||
Prices used in determining estimated future net cash flows from proved reserves | $ / bbl | 54.48 | |
Natural Gas [Member] | ||
Prices used in determining estimated future net cash flows from proved reserves | 3.53 |
Acquistions (Narrative) (Detail
Acquistions (Narrative) (Details) - Central Midland Basin [Member] $ in Thousands | Oct. 08, 2014USD ($) |
Business Acquisition [Line Items] | |
Aggregate cash purchase price | $ 210,205 |
Working interest | 62.00% |
Net revenue interest | 46.50% |
Equity offering | $ 122,450 |
Acquistions (Schedule of Acquis
Acquistions (Schedule of Acquisition Fair Value of Net Assets ) (Details) - Central Midland Basin [Member] $ in Thousands | Oct. 08, 2014USD ($) |
Business Acquisition [Line Items] | |
Oil and natural gas properties | $ 91,895 |
Asset retirement obligations | (140) |
Net assets to be acquired | 210,205 |
Unevaluated Oil and Gas Properties [Member] | |
Business Acquisition [Line Items] | |
Oil and natural gas properties | $ 118,450 |
Acquisitions (Unaudited Pro For
Acquisitions (Unaudited Pro Forma Financial Information) (Details) - Central Midland Basin [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Business Acquisition [Line Items] | ||
Revenues | $ 48,037 | $ 142,040 |
Income from operations | 15,245 | 45,543 |
Income available to common stockholders | $ 11,143 | $ 16,686 |
Basic | $ 0.19 | $ 0.30 |
Diluted | $ 0.19 | $ 0.29 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Earnings Per Share, Basic and Diluted | |||||
Net income (loss) | $ (111,805) | $ 12,201 | $ (126,969) | $ 18,804 | |
Preferred stock dividends | (1,974) | (1,974) | (5,921) | (5,921) | |
Income (loss) available to common stockholders | $ (113,779) | $ 10,227 | $ (132,890) | $ 12,883 | |
Weighted average shares outstanding | 66,277 | 43,187 | 63,265 | 41,370 | |
Weighted average shares outstanding for diluted loss per share | 66,277 | 44,211 | 63,265 | 42,510 | |
Basic income (loss) per share | $ (1.72) | $ 0.24 | $ (2.10) | $ 0.31 | |
Diluted income (loss) per share | $ (1.72) | $ 0.23 | $ (2.10) | $ 0.30 | |
Stock options [Member] | |||||
Earnings Per Share, Basic and Diluted | |||||
Excluded from the diluted EPS calculation because their effect would be anti-dilutive | [1] | 15 | 30 | 15 | 30 |
Restricted Stock [Member] | |||||
Earnings Per Share, Basic and Diluted | |||||
Dilutive impact | 1,024 | 1,140 | |||
Excluded from the diluted EPS calculation because their effect would be anti-dilutive | [1] | 159 | 159 | ||
[1] | Shares excluded from the diluted earnings per share calculation because their effect would be anti-dilutive. |
Borrowings (Schedule of Borrowi
Borrowings (Schedule of Borrowings) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Principal components: | ||
Senior secured revolving credit facility | $ 99,000 | $ 35,000 |
Secured second lien term loan | 300,000 | 300,000 |
Total carrying value of borrowings | $ 399,000 | $ 335,000 |
Borrowings (Senior secured revo
Borrowings (Senior secured revolving credit facility ) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Oct. 31, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | |||
Senior secured revolving credit facility | $ 99,000 | $ 35,000 | |
Senior Secured Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 500,000 | ||
Current borrowing capacity | $ 250,000 | ||
Interest rate at period end (as a percent) | 2.21% | ||
Unused capacity, commitment fee (as a percent) | 0.50% | ||
Debt Instrument, Maturity Date | Mar. 11, 2019 | ||
Senior Secured Revolving Credit Facility [Member] | Subsequent Event [Member] | |||
Line of Credit Facility [Line Items] | |||
Current borrowing capacity | $ 300,000 | ||
Senior Secured Revolving Credit Facility [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis Spread on LIBOR (as a percent) | 1.75% | ||
Senior Secured Revolving Credit Facility [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis Spread on LIBOR (as a percent) | 2.75% |
Borrowings (Term Loans) (Detail
Borrowings (Term Loans) (Details) - Secured second lien term loan [Member] - USD ($) $ in Thousands | Oct. 08, 2014 | Sep. 30, 2015 |
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | $ 300,000 | |
Debt instrument, description | The prepayment amount (i) is 102% if the prepayment event occurs prior to October 8, 2016, (ii) is 101% if the prepayment event occurs on or after October 8, 2016 but before October 8, 2017, and (iii) is 100% for prepayments made on or after October 8, 2017. The Term Loan is secured by junior liens on properties mortgaged under the Credit Facility, subject to an intercreditor agreement. | |
Proceeds from Issuance of Debt | $ 300,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 8.50% | |
Floor rate | 1.00% | |
Basis Spread on LIBOR (as a percent) | 7.50% | |
Debt Instrument, Maturity Date | Oct. 8, 2021 | |
Prior to First Anniversary [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Prepayment Premium Percentage | 102.00% | |
After First Anniversary but Prior to Second Anniversary [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Prepayment Premium Percentage | 101.00% | |
After Second Anniversary [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Prepayment Premium Percentage | 100.00% |
Derivative Instruments and He31
Derivative Instruments and Hedging Activities (Derivatives Fair Value by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Net Derivative Fair Value | $ 18,966 | $ 26,601 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 18,966 | 27,850 |
Liability Fair Value | (1,249) | |
Net Derivative Fair Value | 18,966 | 26,601 |
Non-Current Assets Fair Market Value Of Derivatives [Member] | Not Designated as Hedging Instrument [Member] | Crude Oil [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 2,203 | |
Current assets - Fair market value of derivatives [Member] | Not Designated as Hedging Instrument [Member] | Crude Oil [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 16,356 | 26,588 |
Current assets - Fair market value of derivatives [Member] | Not Designated as Hedging Instrument [Member] | Natural Gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 407 | 1,262 |
Current liabilities - Fair market value of derivatives [Member] | Not Designated as Hedging Instrument [Member] | Crude Oil [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Fair Value | (1,242) | |
Current liabilities - Fair market value of derivatives [Member] | Not Designated as Hedging Instrument [Member] | Natural Gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Fair Value | (7) | |
Balance Sheet Current [Member] | Not Designated as Hedging Instrument [Member] | Crude Oil [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivative Fair Value | 16,356 | 25,346 |
Balance Sheet Current [Member] | Not Designated as Hedging Instrument [Member] | Natural Gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivative Fair Value | 407 | $ 1,255 |
Balance Sheet Non Current [Member] | Not Designated as Hedging Instrument [Member] | Crude Oil [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivative Fair Value | $ 2,203 |
Derivative Instruments and He32
Derivative Instruments and Hedging Activities (Derivative Netting Adjustments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: Fair value of hedging contracts [Member] | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 17,539 | $ 27,850 |
Derivative Asset, Fair Value, Gross Liability | (776) | |
Derivative Assets | 16,763 | 27,850 |
Long-term assets: Fair value of hedging contracts [Member] | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2,203 | |
Derivative Assets | 2,203 | |
Current liabilities: Fair value of hedging contracts [Member] | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (776) | (1,249) |
Derivative Liability, Fair Value, Gross Asset | $ 776 | |
Derivative Liabilities | $ (1,249) |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities (Gain or loss on derivative contracts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) on fair value adjustments | $ (7,635) | $ 5,728 | ||
Total gain (loss) on derivative instruments | $ 23,283 | $ 9,944 | 17,463 | 2,746 |
Crude Oil [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) on settlements | 9,399 | (497) | 23,863 | (2,838) |
Net gain (loss) on fair value adjustments | 13,758 | 10,351 | (6,787) | 5,805 |
Total gain (loss) on derivative instruments | 23,157 | 9,854 | 17,076 | 2,967 |
Natural Gas [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) on settlements | 390 | 35 | 1,235 | (144) |
Net gain (loss) on fair value adjustments | (264) | 55 | (848) | (77) |
Total gain (loss) on derivative instruments | $ 126 | $ 90 | $ 387 | $ (221) |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Derivative Positions) (Details) - Not Designated as Hedging Instrument [Member] MMBTU in Thousands | 9 Months Ended |
Sep. 30, 2015MMBTU$ / MMBTU$ / bblMBbls | |
Collar Contracts Combined With Short Puts Three Months Ended December 31, 2015 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Total volume | MMBTU | 161 |
Collar Contracts Combined With Short Puts Three Months Ended December 31, 2015 [Member] | Natural Gas [Member] | Call Option [Member] | Short [Member] | |
Derivative [Line Items] | |
Strike price | $ / MMBTU | 4.32 |
Collar Contracts Combined With Short Puts Three Months Ended December 31, 2015 [Member] | Natural Gas [Member] | Put Option [Member] | Long [Member] | |
Derivative [Line Items] | |
Strike price | $ / MMBTU | 3.85 |
Collar Contracts Combined With Short Puts Three Months Ended December 31, 2015 [Member] | Natural Gas [Member] | Put Option [Member] | Short [Member] | |
Derivative [Line Items] | |
Strike price | $ / MMBTU | 3.25 |
Collar Contracts Combined With Short Puts Three Months Ended March 31, 2016 [Member] | Crude Oil [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 182 |
Collar Contracts Combined With Short Puts Three Months Ended March 31, 2016 [Member] | Crude Oil [Member] | Call Option [Member] | Short [Member] | |
Derivative [Line Items] | |
Strike price | 65 |
Collar Contracts Combined With Short Puts Three Months Ended March 31, 2016 [Member] | Crude Oil [Member] | Put Option [Member] | Long [Member] | |
Derivative [Line Items] | |
Strike price | 55 |
Collar Contracts Combined With Short Puts Three Months Ended March 31, 2016 [Member] | Crude Oil [Member] | Put Option [Member] | Short [Member] | |
Derivative [Line Items] | |
Strike price | 40.33 |
Collar Contracts Combined With Short Puts Three Months Ended June 30, 2016 [Member] | Crude Oil [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 182 |
Collar Contracts Combined With Short Puts Three Months Ended June 30, 2016 [Member] | Crude Oil [Member] | Call Option [Member] | Short [Member] | |
Derivative [Line Items] | |
Strike price | 65 |
Collar Contracts Combined With Short Puts Three Months Ended June 30, 2016 [Member] | Crude Oil [Member] | Put Option [Member] | Long [Member] | |
Derivative [Line Items] | |
Strike price | 55 |
Collar Contracts Combined With Short Puts Three Months Ended June 30, 2016 [Member] | Crude Oil [Member] | Put Option [Member] | Short [Member] | |
Derivative [Line Items] | |
Strike price | 40.33 |
Collar Contracts Combined With Short Puts Three Months Ended September 30, 2016 [Member] | Crude Oil [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 184 |
Collar Contracts Combined With Short Puts Three Months Ended September 30, 2016 [Member] | Crude Oil [Member] | Call Option [Member] | Short [Member] | |
Derivative [Line Items] | |
Strike price | 65 |
Collar Contracts Combined With Short Puts Three Months Ended September 30, 2016 [Member] | Crude Oil [Member] | Put Option [Member] | Long [Member] | |
Derivative [Line Items] | |
Strike price | 55 |
Collar Contracts Combined With Short Puts Three Months Ended September 30, 2016 [Member] | Crude Oil [Member] | Put Option [Member] | Short [Member] | |
Derivative [Line Items] | |
Strike price | 40.33 |
Collar Contracts Combined With Short Puts Three Months Ended December 31, 2016 [Member] | Crude Oil [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 184 |
Collar Contracts Combined With Short Puts Three Months Ended December 31, 2016 [Member] | Crude Oil [Member] | Call Option [Member] | Short [Member] | |
Derivative [Line Items] | |
Strike price | 65 |
Collar Contracts Combined With Short Puts Three Months Ended December 31, 2016 [Member] | Crude Oil [Member] | Put Option [Member] | Long [Member] | |
Derivative [Line Items] | |
Strike price | 55 |
Collar Contracts Combined With Short Puts Three Months Ended December 31, 2016 [Member] | Crude Oil [Member] | Put Option [Member] | Short [Member] | |
Derivative [Line Items] | |
Strike price | 40.33 |
Swap Contracts Three Months Ended December 31, 2015 [Member] | Crude Oil [Member] | Swap [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 442 |
Average swap price | 64.93 |
Swap Contracts Three Months Ended December 31, 2015 [Member] | Natural Gas [Member] | Swap [Member] | |
Derivative [Line Items] | |
Total volume | MMBTU | 228 |
Average swap price | $ / MMBTU | 3.96 |
Swap Contracts Three Months Ended March 31, 2016 [Member] | Crude Oil [Member] | Swap [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 182 |
Average swap price | 58.23 |
Swap Contracts Three Months Ended June 30, 2016 [Member] | Crude Oil [Member] | Swap [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 182 |
Average swap price | 58.23 |
Swap Contracts Three Months Ended September 30, 2016 [Member] | Crude Oil [Member] | Swap [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 184 |
Average swap price | 58.23 |
Swap Contracts Three Months Ended December 31, 2016 [Member] | Crude Oil [Member] | Swap [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 184 |
Average swap price | 58.23 |
Swap Contracts Differentials Three Months Ended December 31, 2015 [Member] | Crude Oil [Member] | Swap [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 327 |
Average swap price | (2.38) |
Swap Contracts Differentials Three Months Ended March 31, 2016 [Member] | Crude Oil [Member] | Swap [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 364 |
Average swap price | 0.17 |
Swap Contracts Differentials Three Months Ended June 30, 2016 [Member] | Crude Oil [Member] | Swap [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 364 |
Average swap price | 0.17 |
Swap Contracts Differentials Three Months Ended September 30, 2016 [Member] | Crude Oil [Member] | Swap [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 368 |
Average swap price | 0.17 |
Swap Contracts Differentials Three Months Ended December 31, 2016 [Member] | Crude Oil [Member] | Swap [Member] | |
Derivative [Line Items] | |
Total volume | MBbls | 368 |
Average swap price | 0.17 |
Short Call Contracts Three Months December 31, 2015 [Member] | Natural Gas [Member] | Call Option [Member] | Short [Member] | |
Derivative [Line Items] | |
Total volume | MMBTU | 111 |
Strike price | $ / MMBTU | 5 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative Assets | ||
Derivative Assets, Current | $ 16,763 | $ 27,850 |
Derivative Assets, Noncurrent | 2,203 | |
Derivative Liabilities | ||
Derivative Liabilities, Current | (1,249) | |
Fair Value, Net Asset | 18,966 | 26,601 |
Level 2 [Member] | ||
Derivative Assets | ||
Derivative Assets, Current | 16,763 | 27,850 |
Derivative Assets, Noncurrent | 2,203 | |
Derivative Liabilities | ||
Derivative Liabilities, Current | (1,249) | |
Fair Value, Net Asset | $ 18,966 | $ 26,601 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Income Taxes [Abstract] | |
Statutory income tax rate, percent | 35.00% |
Deferred tax assets, valuation allowance | $ 68,818 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||
Asset retirement obligations at beginning of the period | $ 6,674 | ||||
Accretion expense | $ 142 | $ 202 | 485 | $ 603 | |
Liabilities incurred | 121 | ||||
Liabilities settled | (2,923) | ||||
Revisions to estimate | 326 | ||||
Asset retirement obligations at end of period | 4,683 | $ 6,674 | $ 6,674 | ||
Less: current asset retirement obligations | (827) | (4,747) | |||
Long-term asset retirement obligations at the end of the period | 3,856 | 1,927 | |||
Restricted Investments | |||||
Restricted investments | $ 3,305 | $ 3,810 |
Equity Transactions (Details)
Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 13, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Class of Stock [Line Items] | ||||||
Preferred stock redemption, description | The Preferred Stock has no stated maturity and is not subject to any sinking fund or other mandatory redemption. On or after May 30, 2018, the Company may, at its option, redeem the Preferred Stock, in whole or in part, by paying $50.00 per share in cash, plus any accrued and unpaid dividends to the redemption date. | |||||
Preferred stock, dividend expense | $ 1,974 | $ 1,974 | $ 5,921 | $ 5,921 | ||
Share Price | $ 7.29 | $ 7.29 | ||||
Conversion ratio of preferred stock to common stock | 6.9 | |||||
Stock issued during period (in shares) | 9,000,000 | |||||
Shares price issued | $ 6.55 | |||||
Proceeds from issuance of common stock | $ 65,546 | $ 65,546 | 122,514 | |||
Over-Allotment Option [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock issued during period (in shares) | 1,350,000 | |||||
Series A Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Dividend Rate, Percentage | 10.00% | |||||
Preferred stock, liquidation preference (in dollars per share) | 50 | $ 50 | $ 50 | |||
Preferred Stock, Dividend Rate, Per-Dollar-Amount, Per Annum | 5 | |||||
Preferred stock, redemption price per share | $ 50 | $ 50 | ||||
Preferred stock, dividend expense | $ 1,974 | $ 1,974 | $ 5,921 | $ 5,921 |
Other (Narrative) (Details)
Other (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)contract | |
Operating Leases And Other Property Plant And Equipment [Line Items] | |
Early rig contract termination payable | $ 3,641 |
Amount paid for early termination | $ 2,800 |
Horizontal Drilling [Member] | |
Operating Leases And Other Property Plant And Equipment [Line Items] | |
Number of Contracts | contract | 2 |
Extended contract expiration terms | The Cactus 1 Rig was initially contracted for a term of two years in April 2012. The Cactus 2 Rig was initially contracted for a term of two years in April 2014. The Cactus 2 Rig replaced a previously contracted horizontal drilling rig, which was cancelled in March 2014. In March 2015, the Company extended the terms of its Cactus 1 Rig and Cactus 2 Rig to end in July 2018 and August 2018, respectively. |
Operating leases, term of contract | 2 years |